Document:

Exhibit 10.1

     

    Exhibit
      10.1

     

     

    CHESAPEAKE
      FUNDING LLC,

    as
      Issuer

     

     

    and

     

     

    JPMORGAN
      CHASE BANK, NATIONAL ASSOCIATION,

    as
      Indenture Trustee

     

    ______________________________

     

     

    BASE
      INDENTURE

     

    Dated
      as
      of March 7, 2006

     

     

    ______________________________

    
 

     

    Asset
      Backed Notes

     

    (Issuable
      in Series)

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
      OF CONTENTS

     

     

    

      
        	 	 Page
	
                 

                ARTICLE
                  1.
                  DEFINITIONS AND INCORPORATION BY REFERENCE

              	
                 

                1

              
	
                Section
                  1.1.  
                  Definitions

              	
                1

              
	
                Section
                  1.2.  
                  Cross-References

              	
                1

              
	
                Section
                  1.3.  
                  Accounting and Financial Determinations; No Duplication

              	
                1

              
	
                Section
                  1.4.  
                  Rules of Construction.

              	
                2

              
	
                 

                ARTICLE
                  2.
                  THE INVESTOR NOTES

                 

              	
                 

                2

                 

              
	
                Section
                  2.1.  
                  Designation and Terms of Investor Notes

              	
                2

              
	
                Section
                  2.2.  
                  Investor Notes Issuable in Series

              	
                3

              
	
                Section
                  2.3.  
                  Execution and Authentication

              	
                5

              
	
                Section
                  2.4.  
                  Registration of Transfer and Exchange of Notes

              	
                6

              
	
                Section
                  2.5.  
                  Mutilated, Destroyed, Lost or Stolen Notes

              	
                8

              
	
                Section
                  2.6.  
                  Appointment of Paying Agent

              	
                9

              
	
                Section
                  2.7.  
                  Persons Deemed Owners

              	
                10

              
	
                Section
                  2.8.  
                  Investor Noteholder List

              	
                11

              
	
                Section
                  2.9.  
                  Treasury Notes

              	
                11

              
	
                Section
                  2.10.  
                  Book-Entry Notes

              	
                12

              
	
                Section
                  2.11.  
                  Definitive Notes

              	
                12

              
	
                Section
                  2.12.  
                  Global Note

              	
                13

              
	
                Section
                  2.13.  
                  Principal and Interest

              	
                13

              
	
                Section
                  2.14.  
                  Tax Treatment

              	
                14

              
	
                 

                ARTICLE
                  3.
                  SECURITY

                 

              	
                 

                14

                 

              
	
                Section
                  3.1.  
                  Grant of Security Interest

              	
                14

              
	
                Section
                  3.2.  
                  Transaction Documents

              	
                16

              
	
                Section
                  3.3.  
                  Release of Issuer Assets

              	
                17

              
	
                Section
                  3.4.  
                  Opinions of Counsel

              	
                18

              
	
                Section
                  3.5.  
                  Stamp, Other Similar Taxes and Filing Fees

              	
                18

              
	
                 

                ARTICLE
                  4.
                  REPORTS

                 

              	
                 

                18

                 

              
	
                Section
                  4.1.  
                  Servicer Reports

              	
                18

              
	
                Section
                  4.2.  
                  Communication to Investor Noteholders

              	
                19

              
	
                Section
                  4.3.  
                  Rule 144A Information

              	
                20

              
	
                Section
                  4.4.  
                  Reports by the Issuer

              	
                20

              
	
                Section
                  4.5.  
                  Reports by the Indenture Trustee

              	
                20

              
	
                 

                ARTICLE
                  5.
                  ALLOCATION AND APPLICATION OF COLLECTIONS

                 

              	
                 

                21

                 

              
	
                Section
                  5.1.  
                  Collection Account

              	
                21

              
	
                Section
                  5.2.  
                  Gain on Sale Account

              	
                22

              
	
                Section
                  5.3.  
                  Collection of Money

              	
                23

              

      

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                Section
                  5.4.  
                  Collections and Allocations

              	
                23

              
	
                Section
                  5.5.  
                  Joint Collection Account Disputes

              	
                24

              
	
                 

                ARTICLE
                  6.
                  DISTRIBUTIONS

                 

              	
                 

                24

                 

              
	
                Section
                  6.1.  
                  Distributions in General

              	
                24

              
	
                Section
                  6.2.  
                  Optional Repurchase of Investor Notes

              	
                25

              
	
                 

                ARTICLE
                  7.
                  REPRESENTATIONS AND WARRANTIES

                 

              	
                 

                25

                 

              
	
                Section
                  7.1.  
                  Existence and Power

              	
                25

              
	
                Section
                  7.2.  
                  Governmental Authorization

              	
                26

              
	
                Section
                  7.3.  
                  Binding Effect

              	
                26

              
	
                Section
                  7.4.  
                  Financial Information; Financial Condition

              	
                26

              
	
                Section
                  7.5.  
                  Litigation

              	
                26

              
	
                Section
                  7.6.  
                  No
                  ERISA Plan

              	
                26

              
	
                Section
                  7.7.  
                  Tax Filings and Expenses

              	
                27

              
	
                Section
                  7.8.  
                  Disclosure

              	
                27

              
	
                Section
                  7.9.  
                  Investment Company Act

              	
                27

              
	
                Section
                  7.10.  
                  Regulations T, U and X

              	
                27

              
	
                Section
                  7.11.  
                  No
                  Consent

              	
                27

              
	
                Section
                  7.12.  
                  Solvency

              	
                27

              
	
                Section
                  7.13.  
                  Security Interests

              	
                28

              
	
                Section
                  7.14.  
                  Binding Effect of Certain Agreements

              	
                28

              
	
                Section
                  7.15.  
                  Non-Existence of Other Agreements

              	
                28

              
	
                Section
                  7.16.  
                  Compliance with Contractual Obligations and Laws

              	
                29

              
	
                Section
                  7.17.  
                  Other Representations

              	
                29

              
	
                Section
                  7.18.  
                  Ownership of the Issuer.

              	
                29

              
	
                 

                ARTICLE
                  8.
                  COVENANTS

                 

              	
                 

                29

                 

              
	
                Section
                  8.1.  
                  Payment of Investor Notes

              	
                29

              
	
                Section
                  8.2.  
                  Maintenance of Office or Agency

              	
                29

              
	
                Section
                  8.3.  
                  Payment of Obligations

              	
                30

              
	
                Section
                  8.4.  
                  Conduct of Business and Maintenance of Existence

              	
                30

              
	
                Section
                  8.5.  
                  Compliance with Laws

              	
                30

              
	
                Section
                  8.6.  
                  Inspection of Property, Books and Records

              	
                30

              
	
                Section
                  8.7.  
                  Compliance with Transaction Documents; Issuer Assets

              	
                31

              
	
                Section
                  8.8.  
                  Notice of Defaults

              	
                31

              
	
                Section
                  8.9.  
                  Notice of Material Proceedings

              	
                31

              
	
                Section
                  8.10.  
                  Further Requests

              	
                32

              
	
                Section
                  8.11.  
                  Protection of Issuer Assets

              	
                32

              
	
                Section
                  8.12.  
                  Annual Opinion of Counsel

              	
                32

              
	
                Section
                  8.13.  
                  Liens

              	
                33

              
	
                Section
                  8.14.  
                  Other Indebtedness

              	
                33

              
	
                Section
                  8.15.  
                  Mergers

              	
                33

              
	
                Section
                  8.16.  
                  Sales of Issuer Assets

              	
                33

              
	
                Section
                  8.17.  
                  Acquisition of Assets

              	
                33

              
	
                Section
                  8.18.  
                  Distributions

              	
                33

              
	
                Section
                  8.19.  
                  Legal Name; Location Under Section 9-301

              	
                33

              
	
                Section
                  8.20.  
                  Organizational Documents

              	
                34

              
	
                Section
                  8.21.  
                  Investments

              	
                34

              
	
                Section
                  8.22.  
                  No
                  Other Agreements

              	
                34

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                Section
                  8.23.  
                  Other Business

              	
                34

              
	
                Section
                  8.24.  
                  Maintenance of Separate Existence

              	
                34

              
	
                Section
                  8.25.  
                  Use of Proceeds of Investor Notes

              	
                36

              
	
                Section
                  8.26.  
                  No
                  ERISA Plan

              	
                36

              
	
                 

                ARTICLE
                  9.
                  REMEDIES

                 

              	
                 

                36

                 

              
	
                Section
                  9.1.  
                  Events of Default

              	
                36

              
	
                Section
                  9.2.  
                  Acceleration of Maturity; Rescission and Annulment

              	
                37

              
	
                Section
                  9.3.  
                  Collection of Indebtedness and Suits for Enforcement by the Indenture
                  Trustee

              	
                38

              
	
                Section
                  9.4.  
                  Remedies; Priorities

              	
                40

              
	
                Section
                  9.5.  
                  Optional Preservation of the Issuer Assets

              	
                41

              
	
                Section
                  9.6.  
                  Limitation on Suits

              	
                41

              
	
                Section
                  9.7.  
                  Unconditional Rights of Investor Noteholders to Receive Principal
                  and
                  Interest

              	
                42

              
	
                Section
                  9.8.  
                  Restoration of Rights and Remedies

              	
                42

              
	
                Section
                  9.9.  
                  Rights and Remedies Cumulative

              	
                42

              
	
                Section
                  9.10.  
                  Delay or Omission Not a Waiver

              	
                43

              
	
                Section
                  9.11.  
                  Control by Investor Noteholders

              	
                43

              
	
                Section
                  9.12.  
                  Waiver of Past Defaults

              	
                43

              
	
                Section
                  9.13.  
                  Undertaking for Costs

              	
                44

              
	
                Section
                  9.14.  
                  Waiver of Stay or Extension Laws

              	
                44

              
	
                Section
                  9.15.  
                  Action on Investor Notes

              	
                44

              
	
                 

                ARTICLE
                  10.
                  THE INDENTURE TRUSTEE

                 

              	
                 

                45

                 

              
	
                Section
                  10.1.  
                  Duties of the Indenture Trustee

              	
                45

              
	
                Section
                  10.2.  
                  Rights of the Indenture Trustee

              	
                46

              
	
                Section
                  10.3.  
                  Indenture Trustee’s Disclaimer

              	
                47

              
	
                Section
                  10.4.  
                  Indenture Trustee May Own Investor Notes

              	
                48

              
	
                Section
                  10.5.  
                  Notice of Defaults

              	
                48

              
	
                Section
                  10.6.  
                  Compensation

              	
                48

              
	
                Section
                  10.7.  
                  Eligibility Requirements for Indenture Trustee

              	
                48

              
	
                Section
                  10.8.  
                  Resignation or Removal of Indenture Trustee

              	
                49

              
	
                Section
                  10.9.  
                  Successor Indenture Trustee by Merger

              	
                50

              
	
                Section
                  10.10.  
                  Appointment of Co-Trustee or Separate Trustee

              	
                50

              
	
                Section
                  10.11.  
                  Representations and Warranties of Indenture Trustee

              	
                52

              
	
                Section
                  10.12.  
                  Preferential Collection of Claims Against the Issuer

              	
                52

              
	
                 

                ARTICLE
                  11.
                  DISCHARGE OF INDENTURE

                 

              	
                 

                52

                 

              
	
                Section
                  11.1.  
                  Termination of the Issuer’s Obligations

              	
                52

              
	
                Section
                  11.2.  
                  Application of Trust Money

              	
                53

              
	
                Section
                  11.3.  
                  Repayment to the Issuer

              	
                54

              
	
                 

                ARTICLE
                  12.
                  AMENDMENTS

                 

              	
                 

                54

                 

              
	
                Section
                  12.1.  
                  Without Consent of the Investor Noteholders

              	
                54

              
	
                Section
                  12.2.  
                  With Consent of the Investor Noteholders

              	
                55

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                Section
                  12.3.  
                  Supplements

              	
                56

              
	
                Section
                  12.4.  
                  Revocation and Effect of Consents

              	
                56

              
	
                Section
                  12.5.  
                  Notation on or Exchange of Investor Notes

              	
                56

              
	
                Section
                  12.6.  
                  The Indenture Trustee to Sign Amendments, etc

              	
                56

              
	
                Section
                  12.7.  
                  Conformity with Trust Indenture Act

              	
                57

              
	
                 

                ARTICLE
                  13.
                  MISCELLANEOUS

                 

              	
                 

                57

                 

              
	
                Section
                  13.1.  
                  Compliance Certificates and Opinions

              	
                57

              
	
                Section
                  13.2.  
                  Forms of Documents Delivered to Indenture Trustee

              	
                58

              
	
                Section
                  13.3.  
                  Actions of Noteholders

              	
                59

              
	
                Section
                  13.4.  
                  Notices

              	
                60

              
	
                Section
                  13.5.  
                  Conflict with TIA

              	
                61

              
	
                Section
                  13.6.  
                  Rules by the Indenture Trustee

              	
                61

              
	
                Section
                  13.7.  
                  Duplicate Originals

              	
                62

              
	
                Section
                  13.8.  
                  Benefits of Indenture

              	
                62

              
	
                Section
                  13.9.  
                  Payment on Business Day

              	
                62

              
	
                Section
                  13.10.  
                  Governing Law

              	
                62

              
	
                Section
                  13.11.  
                  Severability of Provisions

              	
                62

              
	
                Section
                  13.12.  
                  Counterparts

              	
                62

              
	
                Section
                  13.13.  
                  Successors

              	
                62

              
	
                Section
                  13.14.  
                  Table of Contents, Headings, etc.

              	
                63

              
	
                Section
                  13.15.  
                  Recording of Indenture

              	
                63

              
	
                Section
                  13.16.  
                  No
                  Petition

              	
                63

              
	
                Section
                  13.17.  
                  SUBIs

              	
                63

              
	
                Section
                  13.18.  
                  Election of Overconcentration Option.

              	
                64

              

      

    
      
        
           

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
           

        

      

    

    

      BASE
        INDENTURE, dated as of March 7, 2006, between CHESAPEAKE FUNDING LLC, a special
        purpose limited liability company established under the laws of Delaware,
        as
        issuer (the “Issuer”),
        and
        JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, a national banking association,
        as
        trustee (in such capacity, the “Indenture
        Trustee”).

       

      W
        I T
        N E S S E T H:

       

      WHEREAS,
        the Issuer has duly authorized the execution and delivery of this Base Indenture
        to provide for the issuance from time to time of one or more series of Investor
        Notes from time to time, issuable as provided in this Base Indenture;
        and

       

      WHEREAS,
        all things necessary to make this Base Indenture a legal, valid and binding
        agreement of the Issuer, in accordance with its terms, have been done, and
        the
        Issuer proposes to do all the things necessary to make the Investor Notes,
        when
        executed by the Issuer and authenticated and delivered by the Indenture Trustee
        hereunder and duly issued by the Issuer, the legal, valid and binding
        obligations of the Issuer as hereinafter provided;

       

      NOW,
        THEREFORE, for and in consideration of the premises and the receipt of the
        Investor Notes by the Investor Noteholders, it is mutually covenanted and
        agreed, for the equal and proportionate benefit of all Investor Noteholders,
        as
        follows:

       

      ARTICLE
        1.  

       

       

      DEFINITIONS
        AND INCORPORATION BY REFERENCE

       

      Section
        1.1.    Definitions

       

      Certain
        capitalized terms used herein (including the preamble and the recitals hereto)
        shall have the meanings assigned to such terms in the Definitions List attached
        hereto as Schedule
        1
        (the
“Definitions
        List”),
        as
        such Definitions List may be amended or modified from time to time in accordance
        with the provisions hereof.

       

      Section
        1.2.    Cross-References

       

      Unless
        otherwise specified, references in this Base Indenture and in each other
        Transaction Document to any Article or Section are references to such Article
        or
        Section of this Base Indenture or such other Transaction Document, as the
        case
        may be and, unless otherwise specified, references in any Article, Section
        or
        definition to any clause are references to such clause of such Article, Section
        or definition.

       

      Section
        1.3.    Accounting
        and Financial Determinations; No Duplication

       

      Where
        the
        character or amount of any asset or liability or item of income or expense
        is
        required to be determined, or any accounting computation is required to be
        made,
        for the purpose of the Indenture, such determination or calculation shall
        be
        made, to the extent applicable and except as otherwise specified in the
        Indenture, in accordance with GAAP. When used herein, the term “financial
        statement” shall include the notes and schedules thereto. All accounting
        determinations and computations hereunder or under any other Transaction
        Documents shall be made without duplication.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Section
        1.4.    Rules
        of Construction.

       

      In
        the
        Indenture, unless the context otherwise requires:

       

      (i)    the
        singular includes the plural and vice versa;

       

      (ii)    reference
        to any Person includes such Person’s successors and assigns but, if applicable,
        only if such successors and assigns are permitted by the Indenture, and
        reference to any Person in a particular capacity only refers to such Person
        in
        such capacity;

       

      (iii)    reference
        to any gender includes the other gender;

       

      (iv)    reference
        to any Requirement of Law means such Requirement of Law as amended, modified,
        codified or reenacted, in whole or in part, and in effect from time to
        time;

       

      (v)    “including”
        (and with correlative meaning “include”) means including without limiting the
        generality of any description preceding such term; and

       

      (vi)    with
        respect to the determination of any period of time, “from” means “from and
        including” and “to” means “to but excluding”.

       

      ARTICLE
        2.  

       

       

      THE
        INVESTOR NOTES

       

      Section
        2.1.    Designation
        and Terms of Investor Notes

       

       

      Each
        Series of Investor Notes and any Class thereof may be issued in bearer form
        (the
“Bearer
        Notes”)
        with
        attached interest coupons and a special coupon (collectively, the “Coupons”)
        or in
        fully registered form (the “Registered
        Notes”),
        and,
        in each case, substantially in the form specified in the applicable Indenture
        Supplement, with such appropriate insertions, omissions, substitutions and
        other
        variations as are required or permitted hereby or by the related Indenture
        Supplement and may have such letters, numbers or other marks of identification
        and such legends or endorsements placed thereon as may, consistently herewith,
        be determined to be appropriate by the Authorized Officer executing such
        Investor Notes, as evidenced by his execution of the Investor Notes. All
        Investor Notes of any Series shall, except as specified in the related Indenture
        Supplement, be equally and ratably entitled as provided herein to the benefits
        hereof without preference, priority or distinction on account of the actual
        time
        or times of authentication and delivery, all in accordance with the terms
        and
        provisions of this Base Indenture and the applicable Indenture Supplement.
        The
        aggregate principal amount of Investor Notes which may be authenticated and
        delivered under the Indenture is unlimited. The Investor Notes shall be issued
        in the denominations set forth in the related Indenture Supplement.

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      Section
        2.2.    Investor
        Notes Issuable in Series

       

       

      (a)    The
        Investor Notes may be issued in one or more Series. Each Series of Investor
        Notes shall be created by an Indenture Supplement. 

       

      (b)    Investor
        Notes of a new Series may from time to time be executed by the Issuer and
        delivered to the Indenture Trustee for authentication and thereupon the same
        shall be authenticated and delivered by the Indenture Trustee upon the receipt
        by the Indenture Trustee of an Issuer Request at least three (3) Business
        Days
        (or such shorter time as is acceptable to the Indenture Trustee) in advance
        of
        the related Series Closing Date and upon delivery by the Issuer to the Indenture
        Trustee, and receipt by the Indenture Trustee, of the following:

       

      (i)    an
        Issuer
        Order authorizing and directing the authentication and delivery of the Investor
        Notes of such new Series by the Indenture Trustee and specifying the designation
        of such new Series, the Initial Invested Amount (or the method for calculating
        such Initial Invested Amount) of such new Series and the Note Rate (or the
        method for allocating interest payments or other cash flows to such Series),
        if
        any, with respect to such Series;

       

      (ii)    an
        Indenture Supplement satisfying the criteria set forth in Section
        2.2(b)
        executed
        by the Issuer and specifying the Principal Terms of such new
        Series;

       

      (iii)    a
        Tax
        Opinion;

       

      (iv)    written
        confirmation from each Rating Agency that the Rating Agency Condition shall
        have
        been satisfied with respect to such issuance; 

       

      (v)    an
        Officer’s Certificate of the Issuer, that on the Series Closing Date after
        giving effect to the issuance of such new Series, (i) neither an Amortization
        Event nor a Potential Amortization Event with respect to any Series of Investor
        Notes nor an Asset Deficiency is continuing or will occur, (ii) the issuance
        of
        the new Series of Investor Notes will not result in any breach of any of
        the
        terms, conditions or provisions of or constitute a default under any indenture,
        mortgage, deed of trust or other agreement or instrument to which the Issuer
        is
        a party or by which it or its property is bound or any order of any court
        or
        administrative agency entered in any suit, action or other judicial or
        administrative proceeding to which the Issuer is a party or by which it or
        its
        property may be bound or to which it or its property may be subject and (iii)
        all conditions precedent provided in this Base Indenture and the related
        Indenture Supplement with respect to the authentication and delivery of the
        new
        Series of Investor Notes have been complied with; and 

       

      (vi)    such
        other documents, instruments, certifications, agreements or other items as
        the
        Indenture Trustee may reasonably require.

       

      (c)    In
        conjunction with the issuance of a new Series of Investor Notes, the parties
        hereto shall execute an Indenture Supplement, which shall specify the relevant
        terms with respect to any newly issued Series of Investor Notes, which may
        include without limitation:

       

      (i)    its
        name
        or designation;

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      (ii)    an
        Initial Invested Amount of such Series or the method of calculating the Initial
        Invested Amount of such Series;

       

      (iii)    the
        Note
        Rate (or formula for the determination thereof) with respect to such
        Series;

       

      (iv)    the
        Series Closing Date;

       

      (v)    each
        Rating Agency rating such Series;

       

      (vi)    the
        name
        of the Clearing Agency or Foreign Clearing Agency, if any;

       

      (vii)    the
        interest payment date or dates and the date or dates from which interest
        shall
        accrue; 

       

      (viii)    the
        method of allocating Collections with respect to such Series;

       

      (ix)    the
        method by which the principal amount of Investor Notes of such Series shall
        amortize or accrete;

       

      (x)    the
        names
        of any Series Accounts to be used by such Series and the terms governing
        the
        operation of any such accounts and the use of moneys therein;

       

      (xi)    the
        Series Servicing Fee and the Series Servicing Fee Percentage;

       

      (xii)    the
        terms
        on which the Investor Notes of such Series may be redeemed, repurchased or
        remarketed to other investors;

       

      (xiii)    any
        deposit of funds to be made into any Series Account on the Series Closing
        Date;

       

      (xiv)    the
        number of Classes of such Series, and if more than one Class, the rights
        and
        priorities of each such Class;

       

      (xv)    the
        priority of any Series with respect to any other Series;

       

      (xvi)    
        the
        Lease Rate Caps required to be maintained with respect to such Series;
        and

       

      (xvii)    any
        other
        relevant terms of such Series (including whether or not such Series will
        be
        pledged as collateral for an issuance of any other securities, including
        commercial paper) (all such terms, the “Principal
        Terms”
of
        such
        Series).

       

      The
        terms
        of such Indenture Supplement may modify or amend the terms of this Base
        Indenture solely as applied to such new Series. 

       

      (d)    The
        Issuer may direct the Indenture Trustee to deposit all or a portion of the
        net
        proceeds from the issuance of any new Series of Investor Notes into a Series
        Account for another Series of Investor Notes and may specify that the proceeds
        from the sale of such new Series of Investor Notes may be used to reduce
        the
        Invested Amount of another Series of Investor Notes.

       

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      Section
        2.3.    Execution
        and Authentication

       

      (a)    The
        Investor Notes shall, upon issue pursuant to Section
        2.2,
        be
        executed on behalf of the Issuer by an Authorized Officer and delivered by
        the
        Issuer to the Indenture Trustee for authentication and redelivery as provided
        herein. If an Authorized Officer whose signature is on an Investor Note no
        longer holds that office at the time the Investor Note is authenticated,
        the
        Investor Note shall nevertheless be valid.

       

      (b)    At
        any
        time and from time to time after the execution and delivery of this Base
        Indenture, the Issuer may deliver Investor Notes of any particular Series
        executed by the Issuer to the Indenture Trustee for authentication, together
        with one or more Issuer Orders for the authentication and delivery of such
        Investor Notes, and the Indenture Trustee, in accordance with such Issuer
        Order
        and this Base Indenture, shall authenticate and deliver such Investor Notes.
        If
        specified in the related Indenture Supplement for any Series of Investor
        Notes,
        the Indenture Trustee shall authenticate and deliver outside the United States
        the Global Note that is issued upon original issuance thereof, upon receipt
        of
        an Issuer Order, to the Depository against payment of the purchase price
        therefor. If specified in the related Indenture Supplement for any Series
        of
        Investor Notes, the Indenture Trustee shall authenticate Book-Entry Notes
        that
        are issued upon original issuance thereof, upon receipt of an Issuer Order,
        to a
        Clearing Agency, a Foreign Clearing Agency or its nominee as provided in
        Section
        2.10
        against
        payment of the purchase price thereof. 

       

      (c)    No
        Investor Note shall be entitled to any benefit under the Indenture or be
        valid
        for any purpose unless there appears on such Investor Note a certificate
        of
        authentication substantially in the form provided for herein, duly executed
        by
        the Indenture Trustee by the manual signature of a Responsible Officer (and
        the
        Luxembourg agent (the “Luxembourg
        Agent”),
        if
        such Investor Notes are listed on the Luxembourg Stock Exchange). Such
        signatures on such certificate shall be conclusive evidence, and the only
        evidence, that the Investor Note has been duly authenticated under the
        Indenture. The Indenture Trustee may appoint an authenticating agent acceptable
        to the Issuer to authenticate Investor Notes. Unless limited by the term
        of such
        appointment, an authenticating agent may authenticate Investor Notes whenever
        the Indenture Trustee may do so. Each reference in this Base Indenture to
        authentication by the Indenture Trustee includes authentication by such agent.
        The Indenture Trustee’s certificate of authentication shall be in substantially
        the following form:

       

      This
        is
        one of the Investor Notes of a series issued under the within mentioned
        Indenture.

       

      JPMORGAN
        CHASE BANK, NATIONAL 

      ASSOCIATION,
        as Indenture Trustee

      

      By:__________________________

      Authorized
        Signatory

      

      (d)    Each
        Investor Note shall be dated and issued as of the date of its authentication
        by
        the Indenture Trustee, except Bearer Notes which shall be dated the applicable
        Series Closing Date as provided in the related Indenture
        Supplement..

       

      (e)    Notwithstanding
        the foregoing, if any Investor Note shall have been authenticated and delivered
        hereunder but never issued and sold by the Issuer, and the Issuer shall deliver
        such Investor Note to the Indenture Trustee for cancellation, together with
        a
        written statement (which need not comply with Section
        13.2
        and need
        not be accompanied by an Opinion of Counsel) stating that such Investor Note
        has
        never been issued and sold by the Issuer, for all purposes of the Indenture
        such
        Investor Note shall be deemed never to have been authenticated and delivered
        hereunder and shall not be entitled to the benefits of the
        Indenture.

       

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      Section
        2.4.    Registration
        of Transfer and Exchange of Notes

       

      (a)    The
        Issuer shall cause to be kept at the office or agency to be maintained by
        a
        transfer agent and registrar (the “Transfer
        Agent and Registrar”),
        a
        register (the “Note
        Register”)
        in
        which, subject to such reasonable regulations as it may prescribe, the Transfer
        Agent and Registrar shall provide for the registration of the Investor Notes
        of
        each Series (unless otherwise provided in the related Indenture Supplement)
        and
        of transfers and exchanges of the Investor Notes as herein provided. JPMorgan
        Chase is hereby initially appointed Transfer Agent and Registrar for the
        purposes of registering the Investor Notes and transfers and exchanges of
        the
        Investor Notes as herein provided. If any form of Investor Note is issued
        as a
        Global Note, the Indenture Trustee may, or if and so long as any Series of
        Investor Notes is listed on the Luxembourg Stock Exchange and the rules of
        such
        exchange shall so require, the Indenture Trustee shall appoint a co-transfer
        agent and co-registrar in Luxembourg or another European city. Any reference
        in
        the Indenture to the Transfer Agent and Registrar shall include any co-transfer
        agent and co-registrar unless the context otherwise requires. JPMorgan Chase
        shall be permitted to resign as Transfer Agent and Registrar upon 30 days’
written notice to the Indenture Trustee; provided,
        however,
        that
        such resig-nation shall not be effective and JPMorgan Chase shall contin-ue
        to
        perform its duties as Transfer Agent and Registrar until the Indenture Trustee
        has appointed a succes-sor Transfer Agent and Registrar with the consent
        of the
        Issuer. 

       

      If
        a
        Person other than the Indenture Trustee is appointed by the Issuer as the
        Transfer Agent and Registrar, the Issuer will give the Indenture Trustee
        prompt
        written notice of the appointment of such Transfer Agent and Registrar and
        of
        the location, and any change in the location, of the Transfer Agent and
        Register, and the Indenture Trustee shall have the right to inspect the Note
        Register at all reasonable times and to obtain copies thereof.

       

      An
        institution succeeding to the corporate agency business of the Transfer Agent
        and Registrar shall continue to be the Transfer Agent and Registrar without
        the
        execution or filing of any paper or any further act on the part of the Indenture
        Trustee or such Transfer Agent and Registrar.

       

      The
        Transfer Agent and Registrar shall maintain in The City of New York (and,
        if so
        specified in the related Indenture Supplement for any Series of Notes, any
        other
        city designated in such Indenture Supplement) an office or offices or agency
        or
        agencies where Investor Notes may be surrendered for registration of transfer
        or
        exchange. The Transfer Agent and Registrar initially designates its corporate
        trust office located at 4 New York Plaza, New York, New York 10004 as its
        office
        for such purposes. The Transfer Agent and Registrar shall give prompt written
        notice to the Indenture Trustee, the Issuer and to the Investor Noteholders
        of
        any change in the location of such office or agency.

       

      Upon
        surrender for registration of transfer of any Investor Note at the office
        or
        agency of the Transfer Agent and Registrar, if the requirements of Section
        2.4(b)
        and
        Section 8-401(a) of the UCC are met, the Issuer shall execute and after the
        Issuer has executed, the Indenture Trustee shall authenticate and (if the
        Transfer Agent and Registrar is different than the Indenture Trustee, then
        the

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      Transfer
        Agent and Registrar shall) deliver to the Investor Noteholder, in the name
        of
        the designated transferee or transferees, one or more new Investor Notes,
        in any
        authorized denominations, of the same Class and a like aggregate principal
        amount; provided,
        however
        that the
        provisions of this paragraph shall not apply to Bearer Notes.

       

      At
        the
        option of any Holder of Registered Notes, Registered Notes may be exchanged
        for
        other Registered Notes of the same Series in authorized denominations of
        like
        aggregate principal amount, upon surrender of the Registered Notes to be
        exchanged at any office or agency of the Transfer Agent and Registrar maintained
        for such purpose. At the option of any holder of Bearer Notes, subject to
        applicable laws and regulations (including without limitation, the Bearer
        Rules), Bearer Notes may be exchanged for other Bearer Notes or Registered
        Notes
        of the same Series in authorized denominations of like aggregate principal
        amount, in the manner specified in the Indenture Supplement for such Series,
        upon surrender of the Bearer Notes to be exchanged at an office or agency
        of the
        Transfer Agent and Registrar located outside the United States. Each Bearer
        Note
        surrendered pursuant to this Section
        2.4
        shall
        have attached thereto (or be accompanied by) all unmatured Coupons, provided
        that any Bearer Note so surrendered after the close of business on the Record
        Date preceding the relevant Payment Date need not have attached the Coupons
        relating to such Payment Date.

       

      Whenever
        any Investor Notes of any Series are so surrendered for exchange, if the
        requirements of Section 8-401(a) of the UCC are met, the Issuer shall execute
        and after the Issuer has executed, the Indenture Trustee shall authenticate
        and
        (if the Transfer Agent and Registrar is different than the Indenture Trustee,
        then the Transfer Agent and Registrar shall) deliver to the Investor Noteholder,
        the Investor Notes which the Investor Noteholder making the exchange is entitled
        to receive. 

       

      All
        Investor Notes issued upon any registration of transfer or exchange of the
        Investor Notes shall be the valid obligations of the Issuer, evidencing the
        same
        debt, and entitled to the same benefits under the Indenture, as the Investor
        Notes surrendered upon such registration of transfer or exchange.

       

      Every
        Investor Note presented or surrendered for registration of transfer or exchange
        shall be (i) duly endorsed by, or be accompanied by a written instrument
        of
        transfer in form satisfactory to the Indenture Trustee duly executed by,
        the
        Holder thereof or such Holder’s attorney duly authorized in writing, with a
        medallion signature guarantee, and (ii) accompanied by such other documents
        as
        the Indenture Trustee may require. 

       

      The
        preceding provisions of this Section
        2.4
        notwithstanding, the Indenture Trustee or the Transfer Agent and Registrar,
        as
        the case may be, shall not be required to register the transfer of or exchange
        any Investor Note of any Series for a period of 15 days preceding the due
        date
        for any payment in full of the Investor Notes of such Series.

       

      Unless
        otherwise provided in the related Indenture Supplement, no service charge
        shall
        be made for any registration of transfer or exchange of Investor Notes, but
        the
        Transfer Agent and Registrar may require payment of a sum sufficient to cover
        any tax or governmental charge that may be imposed in connection with any
        transfer or exchange of Investor Notes.

       

      All
        Investor Notes (together with any Coupons attached to Bearer Notes) surrendered
        for registration of transfer and exchange shall be canceled by the Transfer
        Agent and Registrar and disposed of in a manner satisfactory to the Indenture
        Trustee. The Indenture 

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      Trustee
        shall cancel and destroy any Global Notes upon its exchange in full for
        Definitive Notes and shall deliver a certificate of destruction to the Issuer.
        Such certificate shall also state that a certificate or certificates of each
        Foreign Clearing Agency was received with respect to each portion of such
        Global
        Note exchanged for Definitive Notes in accordance with the related Indenture
        Supplement.

       

      The
        Issuer shall execute and deliver to the Indenture Trustee or the Transfer
        Agent
        and Registrar, as applicable, Bearer Notes and Registered Notes in such amounts
        and at such times as are necessary to enable the Indenture Trustee to fulfill
        its responsibilities under the Indenture and the Investor Notes.

       

      (b)    Unless
        otherwise provided in the related Indenture Supplement, registration of transfer
        of Registered Notes containing a legend relating to the restrictions on transfer
        of such Registered Notes (which legend shall be set forth in the Indenture
        Supplement relating to such Investor Notes) shall be effected only if the
        conditions set forth in such related Indenture Supplement are
        satisfied.

       

      Section
        2.5.    Mutilated,
        Destroyed, Lost or Stolen Notes

       

      If
        (a)
        any mutilated Investor Note (together, in the case of Bearer Notes, with
        all
        unmatured Coupons, if any, appertaining thereto) is surrendered to the Transfer
        Agent and Registrar, or the Transfer Agent and Registrar receives evidence
        to
        its satisfaction of the destruction, loss or theft of any Investor Note and
        (b)
        there is delivered to the Transfer Agent and Registrar and the Indenture
        Trustee
        such security or indemnity as may be reasonably required by them to save
        each of
        them harmless, then provided
        that the
        requirements of Section 8-405 of the UCC are met, the Issuer shall execute
        and
        after the Issuer has executed, the Indenture Trustee shall authenticate and
        (unless the Transfer Agent and Registrar is different from the Indenture
        Trustee, in which case the Transfer Agent and Registrar shall) deliver (in
        compliance with applicable law), in exchange for or in lieu of any such
        mutilated, destroyed, lost or stolen Investor Note, a new Investor Note of
        like
        tenor and aggregate principal amount; provided,
        however,
        that if
        any such destroyed, lost or stolen Investor Note, but not a mutilated Investor
        Note, shall have become or within seven days shall be due and payable, instead
        of issuing a replacement Investor Note, the Issuer may pay such destroyed,
        lost
        or stolen Investor Note when so due or payable without surrender thereof.
        If,
        after the delivery of such replacement Investor Note or payment of a destroyed,
        lost or stolen Investor Note pursuant to the proviso to the preceding sentence,
        a protected purchaser (within the meaning of Section 8-303 of the UCC) of
        the
        original Investor Note in lieu of which such replacement Investor Note was
        issued presents for payment such original Investor Note, the Issuer, the
        Transfer Agent and Registrar and the Indenture Trustee shall be entitled
        to
        recover such replacement Investor Note (or such payment) from the Person
        to whom
        it was delivered or any Person taking such replacement Investor Note from
        such
        Person to whom such replacement Investor Note was delivered or any assignee
        of
        such Person, except a protected purchaser, and shall be entitled to recover
        upon
        the security or indemnity provided therefor to the extent of any loss, damage,
        cost or expense incurred by the Issuer, the Transfer Agent and Registrar
        or the
        Indenture Trustee in connection therewith.

       

      In
        connection with the issuance of any new Investor Note under this Section
        2.5,
        the
        Indenture Trustee or the Transfer Agent and Registrar may require the payment
        of
        a sum sufficient to cover any tax or other governmental charge that may be
        imposed in relation thereto and any other expenses (including the fees and
        expenses of the Indenture Trustee and the Transfer Agent and Registrar)
        connected therewith. Any duplicate Investor Note issued pursuant to this
        Section
        2.5
        shall
        constitute an original contractual obligation of the Issuer whether or not
        the
        lost, stolen or destroyed note shall be found at any time.

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      Section
        2.6.    Appointment
        of Paying Agent

       

      (a)    The
        Indenture Trustee may appoint a Paying Agent with respect to the Investor
        Notes.
        The Indenture Trustee hereby appoints JPMorgan Chase as the initial Paying
        Agent. The Paying Agent shall have the revocable power to withdraw funds
        and
        make distributions to Investor Noteholders from the appropriate account or
        accounts maintained for the benefit of Noteholders as specified in this Base
        Indenture or the related Indenture Supplement for any Series pursuant to
        Article
        5.
        The
        Indenture Trustee may revoke such power and remove the Paying Agent, if the
        Indenture Trustee determines in its sole discretion that the Paying Agent
        shall
        have failed to perform its obligations under the Indenture in any material
        respect or for other good cause. The Indenture Trustee shall notify the Rating
        Agency of the removal of any Paying Agent. If any form of Investor Note is
        issued as a Global Note, or if and so long as any Series of Investor Notes
        are
        listed on the Luxembourg Stock Exchange and the rules of such exchange shall
        so
        require, the Indenture Trustee shall appoint a co-paying agent in Luxembourg
        or
        another European city. The Paying Agent shall be permitted to resign as Paying
        Agent upon 30 days’ written notice to the Indenture Trustee. In the event that
        any Paying Agent shall no longer be the Paying Agent, the Indenture Trustee
        shall appoint a successor to act as Paying Agent (which shall be a bank or
        trust
        company and may be the Indenture Trustee) with the consent of the Issuer.
        The
        provisions of Sections 10.01, 10.02, 10.03 and 10.06 shall apply to the
        Indenture Trustee also in the capacity of Paying Agent, for so long as the
        Indenture Trustee shall act as Paying Agent. Any reference in the Indenture
        to
        the Paying Agent shall include any co-paying agent unless the context requires
        otherwise.

       

      (b)    The
        Indenture Trustee shall cause each Paying Agent (other than itself) to execute
        and deliver to the Indenture Trustee an instrument in which such Paying Agent
        shall agree with the Indenture Trustee that such Paying Agent will:

       

      (i)    hold
        all
        sums held by it for the payment of amounts due with respect to the Investor
        Notes in trust for the benefit of the Persons entitled thereto until such
        sums
        shall be paid to such Persons or otherwise disposed of as herein provided
        and
        pay such sums to such Persons as herein provided;

       

      (ii)    give
        the
        Indenture Trustee notice of any default by the Issuer of which it has actual
        knowledge in the making of any payment required to be made with respect to
        the
        Investor Notes;

       

      (iii)    at
        any
        time during the continuance of any such default, upon the written request
        of the
        Indenture Trustee, forthwith pay to the Indenture Trustee all sums so held
        in
        trust by such Paying Agent;

       

      (iv)    immediately
        resign as a Paying Agent and forthwith pay to the Indenture Trustee all sums
        held by it in trust for the payment of the Investor Notes if at any time
        it
        ceases to meet the standards required to be met by the Paying Agent at the
        time
        of its appointment; and

       

       

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      (v)    comply
        with all requirements of the Code with respect to the withholding from any
        payments made by it on any Investor Notes of any applicable withholding taxes
        imposed thereon and with respect to any applicable reporting requirements
        in
        connection therewith.

       

      An
        institution succeeding to the corporate agency business of the Paying Agent
        shall continue to be the Paying Agent without the execution or filing of
        any
        paper or any further act on the part of the Indenture Trustee or such Paying
        Agent.

       

      (c)    Subject
        to applicable laws with respect to escheat of funds, any money held by the
        Indenture Trustee or any Paying Agent or a Clearing Agency or a Foreign Clearing
        Agency in trust for the payment of any amount due with respect to any Investor
        Note and remaining unclaimed for two years after such amount has become due
        and
        payable shall be discharged from such trust and be paid to the Issuer on
        Issuer
        Request; and the Holder of such Investor Note shall thereafter, as an unsecured
        general creditor, look only to the Issuer for payment thereof (but only to
        the
        extent of the amounts so paid to the Issuer), and all liability of the Indenture
        Trustee or such Paying Agent with respect to such trust money shall thereupon
        cease; provided,
        however,
        that
        the Indenture Trustee or such Paying Agent, before being required to make
        any
        such repayment, may at the expense of the Issuer cause to be published once,
        in
        a newspaper published in the English language, customarily published on each
        Business Day and of general circulation in New York City, and in a newspaper
        customarily published on each Business Day and of general circulation in
        London
        and Luxembourg (if the related Series of Investor Notes has been listed on
        the
        Luxembourg Stock Exchange), if applicable, notice that such money remains
        unclaimed and that, after a date specified therein, which shall not be less
        than
        30 days from the date of such publication, any unclaimed balance of such
        money
        then remaining will be repaid to the Issuer. The Indenture Trustee may also
        adopt and employ, at the expense of the Issuer, any other reasonable means
        of
        notification of such repayment.

       

      Section
        2.7.    Persons
        Deemed Owners

       

      Prior
        to
        due presentation of an Investor Note for registration of transfer, the Indenture
        Trustee, the Paying Agent and the Transfer Agent and Registrar may treat
        the
        Person in whose name any Investor Note is registered as the owner of such
        Investor Note for the purpose of receiving distributions pursuant to
Article
        5
        (as
        described in any Indenture Supplement) and for all other purposes whatsoever,
        and neither the Indenture Trustee, the Paying Agent nor the Transfer Agent
        and
        Registrar shall be affected by any notice to the contrary.

       

      In
        the
        case of a Bearer Note, the Indenture Trustee, the Paying Agent and the Transfer
        Agent and Registrar may treat the holder of a Bearer Note or Coupon as the
        owner
        of such Bearer Note or Coupon for the purpose of receiving distributions
        pursuant to Article
        5
        and for
        all other purposes whatsoever, and neither the Indenture Trustee, the Paying
        Agent nor the Transfer Agent and Registrar shall be affected by any notice
        to
        the contrary.

       

      Section
        2.8.    Investor
        Noteholder List

       

      The
        Indenture Trustee will furnish or cause to be furnished by the Transfer Agent
        and Registrar to the Issuer or the Paying Agent, within five Business Days
        after
        receipt by the Indenture Trustee of a request therefor from the Issuer or
        the
        Paying Agent, respectively, in writing, a list in such form as the Issuer
        or the
        Paying Agent may reasonably require, of the names and addresses of the Investor
        Noteholders of each Series as of the most recent Record 

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      Date
        for
        payments to such Investor Noteholders. Unless otherwise provided in the related
        Indenture Supplement, holders of Investor Notes of any Series having an
        aggregate principal amount aggregating not less than 10% of the Investor
        Interest of such Series (the “Applicants”)
        may
        apply in writing to the Indenture Trustee, and if such application states
        that
        the Applicants desire to communicate with other Investor Noteholders of any
        Series with respect to their rights under the Indenture or under the Investor
        Notes and is accompanied by a copy of the communication which such Applicants
        propose to transmit, then the Indenture Trustee, after having been adequately
        indemnified by such Applicants for its costs and expenses, shall afford or
        shall
        cause the Transfer Agent and Registrar to afford such Applicants access during
        normal business hours to the most recent list of Investor Noteholders held
        by
        the Indenture Trustee and shall give the Issuer notice that such request
        has
        been made, within five Business Days after the receipt of such application.
        Such
        list shall be as of a date no more than 45 days prior to the date of receipt
        of
        such Applicants’ request. Every Investor Noteholder, by receiving and holding an
        Investor Note, agrees with the Indenture Trustee that neither the Indenture
        Trustee nor the Transfer Agent and Registrar shall be held accountable by
        reason
        of the disclosure of any such information as to the names and addresses of
        the
        Investor Noteholders hereunder, regardless of the source from which such
        information was obtained.

       

      The
        Indenture Trustee shall preserve in as current a form as is reasonably
        practicable the most recent list available to it of the names and addresses
        of
        Investor Noteholders of each Series of Investor Notes. If the Indenture Trustee
        is not the Transfer Agent and Registrar, the Issuer shall furnish to the
        Indenture Trustee at least seven Business Days before each Payment Date and
        at
        such other time as the Indenture Trustee may request in writing, a list in
        such
        form and as of such date as the Indenture Trustee may reasonably require
        of the
        names and addresses of Investor Noteholders of each Series of Investor
        Notes.

       

      Section
        2.9.    Treasury
        Notes

       

      In
        determining whether the Investor Noteholders of the required principal amount
        of
        Investor Notes have concurred in any direction, waiver or consent, Investor
        Notes owned by the Issuer or any Affiliate of the Issuer (other than an
        Affiliate Issuer) shall be considered as though they are not Outstanding,
        except
        that for the purpose of determining whether the Indenture Trustee shall be
        protected in relying on any such direction, waiver or consent, only Investor
        Notes of which the Indenture Trustee has received written notice of such
        ownership shall be so disregarded. Absent written notice to the Indenture
        Trustee of such ownership, the Indenture Trustee shall not be deemed to have
        knowledge of the identity of the individual beneficial owners of the Investor
        Notes.

       

      Section
        2.10.    Book-Entry
        Notes

       

      Unless
        otherwise provided in any related Indenture Supplement, the Investor Notes,
        upon
        original issuance, shall be issued in the form of typewritten Notes representing
        the Book-Entry Notes, to be delivered to the depository specified in such
        Indenture Supplement (the “Depository”)
        which
        shall be the Clearing Agency or the Foreign Clearing Agency, on behalf of
        such
        Series. The Investor Notes of each Series shall, unless otherwise provided
        in
        the related Indenture Supplement, initially be registered on the Note Register
        in the name of the Clearing Agency, the Foreign Clearing Agency, the nominee
        of
        the Clearing Agency or the nominee of the Foreign Clearing Agency. No Beneficial
        Owner will receive a definitive note representing such Beneficial Owner’s
        interest in the related Series of Investor Notes, except as provided in
Section
        2.11.
        Unless
        and until definitive, fully registered Investor Notes of any Series
        (“Definitive
        Notes”)
        have
        been issued to Beneficial Owners pursuant to Section
        2.11:

       

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      (a)    the
        provisions of this Section
        2.10
        shall be
        in full force and effect with respect to each such Series;

       

      (b)    the
        Issuer, the Paying Agent, the Transfer Agent and Registrar and the Indenture
        Trustee may deal with the Clearing Agency or the Foreign Clearing Agency
        and the
        applicable Clearing Agency Participants for all purposes (including the payment
        of principal of and interest on the Investor Notes and the giving of
        instructions or directions hereunder) as the sole Holder of the Investor
        Notes,
        and shall have no obligation to the Beneficial Owners;

       

      (c)    to
        the
        extent that the provisions of this Section
        2.10
        conflict
        with any other provisions of the Indenture, the provisions of this Section
        2.10
        shall
        control with respect to each such Series; and

       

      (d)    the
        rights of Beneficial Owners of each such Series shall be exercised only through
        the Clearing Agency or the Foreign Clearing Agency and the applicable Clearing
        Agency Participants and shall be limited to those established by law and
        agreements between such Beneficial Owners and the Clearing Agency or the
        Foreign
        Clearing Agency and/or the Clearing Agency Participants, and all references
        in
        the Indenture to ac-tions by the Investor Not-e-holders shall refer to actions
        taken by the Clearing Agency or the Foreign Clearing Agency upon in-struc-tions
        from the Clear-ing Agency Partici-pants, and all refer-ences in the Indenture
        to
        dis-tribu-tions, no-tices, reports and statements to the Note--holders shall
        refer to distributions, notices, reports and statements to the Clearing Agency
        or the Foreign Clearing Agency, as regis-tered holder of the Investor Notes
        of
        such Series for distribu-tion to the Beneficial Owners in accor-dance with
        the
        proce-dures of the Clearing Agency. Pursuant to the Depository Agreement
        applicable to a Series, unless and until Definitive Notes of such Series
        are
        issued pursuant to Section
        2.11,
        the
        initial Clearing Agency will make book-entry transfers among the Clearing
        Agency
        Participants and receive and transmit distributions of principal and interest
        on
        the Investor Notes to such Clearing Agency Participants.

       

      Section
        2.11.    Definitive
        Notes

       

      If
        (i)
        (A) the Issuer advises the Indenture Trustee in writing that the Clearing
        Agency
        or the Foreign Clearing Agency is no longer willing or able to discharge
        properly its responsibilities under the applicable Depository Agreement,
        and (B)
        the Indenture Trustee or the Issuer is unable to locate a qualified successor,
        (ii) the Issuer, at its option, advises the Indenture Trustee in writing
        that it
        elects to terminate the book-entry system through the Clearing Agency or
        the
        Foreign Clearing Agency with respect to any Series or (iii) after the occurrence
        of an Event of Default, Beneficial Owners of a Majority in Interest of a
        Series
        of Investor Notes advise the Indenture Trustee and the applicable Clearing
        Agency or the Foreign Clearing Agency through the applicable Clearing Agency
        Participants in writing that the continuation of a book-entry system through
        the
        applicable Clearing Agency or Foreign Clearing Agency is no longer in the
        best
        interests of such Beneficial Owners, the Indenture Trustee shall notify all
        Beneficial Owners of such Series, through the applicable Clearing Agency
        Participants, of the occurrence of any such event and of the availability
        of
        Definitive Notes to Beneficial Owners of such Series requesting the same.
        Upon
        surrender to the Indenture Trustee of the Investor Notes of such Series by
        the
        applicable Clearing Agency or the Foreign Clearing Agency, accompanied by
        registration instructions from the applicable Clearing Agency or the applicable
        Foreign Clearing Agency for registration, the Issuer shall execute and the
        Indenture Trustee shall authenticate and (if the Transfer Agent and Registrar
        is
        different than the Indenture Trustee, then the Transfer Agent and Registrar
        shall) deliver the Definitive Notes in accordance with the instructions of
        the
        Clearing Agency. Neither the Issuer nor the Indenture Trustee shall be liable
        for any delay in delivery of such instructions and may conclusively rely
        on, and
        shall be protected in relying on, such instructions. Upon the issuance of
        Definitive Notes of such Series all references herein to obligations imposed
        upon or to be performed by the applicable Clearing Agency or Foreign Clearing
        Agency shall be deemed to be imposed upon and performed by the Indenture
        Trustee, to the extent applicable with respect to such Definitive Notes,
        and the
        Indenture Trustee shall recognize the Holders of the Definitive Notes of
        such
        Series as Noteholders of such Series hereunder.

       

       

      
        
          
          

        

        
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      Section
        2.12.    Global
        Note

       

      If
        specified in the related Indenture Supplement for any Series, the Investor
        Notes
        may be initially issued in the form of a single temporary Global Note (the
        “Global
        Note”)
        in
        bearer form, without interest coupons, in the denomination of the Initial
        Invested Amount and substantially in the form attached to the related Indenture
        Supplement. Unless otherwise specified in the related Indenture Supplement,
        the
        provisions of this Section
        2.12
        shall
        apply to such Global Note. The Global Note will be authenticated by the
        Indenture Trustee upon the same conditions, in substantially the same manner
        and
        with the same effect as the Definitive Notes. The Global Note may be exchanged
        in the manner described in the related Indenture Supplement for Registered
        or
        Bearer Notes in definitive form.

       

      Section
        2.13.    Principal
        and Interest

       

      (a)    The
        principal of each Series of Investor Notes shall be payable at the times
        and in
        the amount set forth in the related Indenture Supplement and in accordance
        with
Section
        6.1.

       

      (b)    Each
        Series of Investor Notes shall accrue interest as provided in the related
        Indenture Supplement and such interest shall be payable on each Payment Date
        for
        such Series in accordance with Section
        6.1
        and the
        related Indenture Supplement.

       

      (c)    Except
        as
        provided in the following sentence, the Person in whose name any Investor
        Note
        is registered at the close of business on any Record Date with respect to
        a
        Payment Date for such Investor Note shall be entitled to receive the principal
        and interest payable on such Payment Date notwithstanding the cancellation
        of
        such Investor Note upon any registration of transfer, exchange or substitution
        of such Investor Note subsequent to such Record Date. Any interest payable
        at
        maturity shall be paid to the Person to whom the principal of such Investor
        Note
        is payable.

       

      (d)    If
        the
        Issuer defaults in the payment of interest on the Investor Notes of any Series,
        such interest, to the extent paid on any date that is more than five (5)
        Business Days after the applicable due date, shall, at the option of the
        Issuer,
        cease to be payable to the Persons who were Investor Noteholders of such
        Series
        on the applicable Record Date and the Issuer shall pay the defaulted interest
        in
        any lawful manner, plus, to the extent lawful, interest payable on the defaulted
        interest, to the Persons who are Investor Noteholders of such Series on a
        subsequent special record date which date shall be at least five (5) Business
        Days prior to the payment date, at the rate provided in the Indenture and
        in the
        Investor Notes of such Series. The Issuer shall fix or cause to be fixed
        each
        such special record date and payment date, and at least 15 days before the
        special record date, the Issuer (or the Indenture Trustee, in the name of
        and at
        the expense of the Issuer) shall mail to Investor Noteholders of such Series
        a
        notice that states the special record date, the related payment date and
        the
        amount of such interest to be paid.

       

       

      
        
          
          

        

        
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      Section
        2.14.    Tax
        Treatment

       

      The
        Issuer has structured the Indenture and the Investor Notes have been (or
        will
        be) issued with the intention that the Investor Notes will qualify under
        applicable tax law as indebtedness of the Issuer and any entity acquiring
        any
        direct or indirect interest in any Investor Note by acceptance of its Investor
        Notes (or, in the case of a Beneficial Owner, by virtue of such Beneficial
        Owner’s acquisition of a beneficial interest therein) agrees to treat the
        Investor Notes (or beneficial interests therein) for purposes of Federal,
        state
        and local and income or franchise taxes and any other tax imposed on or measured
        by income, as indebtedness of the Issuer. 

       

      ARTICLE
        3. 

       

      SECURITY

       

      Section
        3.1.    Grant
        of Security Interest

       

       

      (a)    To
        secure
        the Issuer Obligations, the Issuer hereby pledges, assigns, conveys, delivers,
        transfers and sets over to the Indenture Trustee, for the benefit of the
        Investor Noteholders, and hereby grants to the Indenture Trustee, for the
        benefit of the Investor Noteholders, a security interest in, all of the
        following property now owned or at any time hereafter acquired by the Issuer
        or
        in which the Issuer now has or at any time in the future may acquire any
        right,
        title or interest (collectively, the “Collateral”):

       

      (i)    the
        Loans, the Loan Note and the Loan Agreement, including, without limitation,
        all
        monies due and to become due to the Issuer from Holdings under or in connection
        with the Loan Agreement or the Loan Note, whether payable as principal,
        interest, fees, costs, indemnities, damages for the breach of the Loan Agreement
        or otherwise, and all of the Issuer’s rights, remedies, powers, interests and
        privileges under the Loan Agreement (whether arising pursuant to the terms
        thereof or otherwise available to the Issuer at law or equity), including,
        without limitation, the right to enforce the Loan Agreement and the Loan
        Note
        and to give or withhold any and all consents, requests, notices, directions,
        approvals or waivers under the Loan Agreement, and to collect and foreclose
        upon
        the Loan Collateral and the DLPT Loan Collateral;

       

      (ii)    the
        Origination Trust Guaranty, including, without limitation, all monies due
        and to
        become due to the Issuer from the Origination Trust under or in connection
        with
        the Origination Trust Guaranty, and all of the Issuer’s rights, remedies,
        powers, interests and privileges under the Origination Trust Guaranty (whether
        arising pursuant to the terms thereof or otherwise available to the Issuer
        at
        law or equity), including, without limitation, the right to enforce the
        Origination Trust Guaranty and to give or withhold any and all consents,
        requests, notices, directions, approvals or waivers thereunder;

       

      (iii)    the
        Origination Trust Security Agreement, including, without limitation, all
        of the
        Issuer’s rights, remedies, powers, interests and privileges under the
        Origination Trust Security Agreement (whether arising pursuant to the terms
        thereof or otherwise available to the Issuer), including, without limitation,
        the right to enforce the Origination Trust Security Agreement, to collect
        and
        foreclose upon the collateral thereunder, to give or withhold any and all
        consents, requests, notices, directions, approvals or waivers thereunder
        and all
        amounts due and to become due thereunder;

       

       

      
        
          
          

        

        
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      (iv)    the
        Nominee Lienholder Agreement, including, without limitation, all of the Issuer’s
        rights, remedies, powers, interests and privileges under the Nominee Lienholder
        Agreement (whether arising pursuant to the terms thereof or otherwise available
        to the Issuer), including, without limitation, the right to enforce the Nominee
        Lienholder Agreement, to give or withhold any and all consents, requests,
        notices, directions, approvals or waivers thereunder and all amounts due
        and to
        become due thereunder, whether payable as indemnities or damages for breach
        thereof;

       

      (v)    the
        Administration Agreement, including, without limitation, all of the Issuer’s
        rights, remedies, powers, interests and privileges under the Administration
        Agreement (whether arising pursuant to the terms thereof or otherwise available
        to the Issuer), including, without limitation, the right to enforce the
        Administration Agreement, to give or withhold any and all consents, requests,
        notices, directions, approvals or waivers thereunder and all amounts due
        and to
        become due thereunder, whether payable as indemnities or damages for breach
        thereof;

       

      (vi)    the
        Collection Account and the Gain on Sale Account, all monies on deposit from
        time
        to time in the Collection Account and the Gain on Sale Account and all Permitted
        Investments made at any time and from time to time with the moneys in the
        Collection Account and the Gain on Sale Account (including any investment
        earnings thereon);

       

      (vii)    each
        Series Account, all monies on deposit from time to time in such Series Account
        and all Permitted Investments made at any time and from time to time with
        the
        moneys in such Series Account (including any investment earnings
        thereon);

       

      (viii)    all
        Lease
        Rate Caps and all additional property that may from time to time hereafter
        (pursuant to the terms of any Indenture Supplement or otherwise) be subjected
        to
        the grant and pledge hereof by the Issuer, including, without limitation,
        any
        Hedging Instruments; and

       

      (ix)    all
        proceeds of any and all of the foregoing including, without limitation, all
        present and future claims, demands, causes of action and chooses in action
        in
        respect of any or all of the foregoing and all payments on or under and all
        proceeds of every kind and nature whatsoever in respect of any or all of
        the
        foregoing, including all proceeds of the conversion thereof, voluntary or
        involuntary, into cash or other liquid property, all cash proceeds, accounts,
        accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit
        accounts, insurance proceeds, condemnation awards, rights to payment of any
        and
        every kind and other forms of obligations and receivables, instruments and
        other
        property which at any time constitute all or part of or are included in the
        proceeds of any of the foregoing. 

       

      (b)    The
        foregoing grant is made in trust to secure the Issuer Obligations and to
        secure
        compliance with the provisions of this Base Indenture and any Indenture
        Supplement, all as provided in the Indenture. The Indenture Trustee, as
        Indenture Trustee on behalf of the Investor Noteholders, acknowledges such
        grant, accepts the trusts under the Indenture in accordance with the provisions
        of the Indenture and subject to Section
        10.1
        and
10.2,
        agrees
        to perform its duties required in the Indenture to the best of its abilities
        to
        the end that the interests of the Investor Noteholders may be adequately
        and
        effectively protected. The Collateral shall secure the Investor Notes equally
        and ratably without prejudice, priority (except, with respect to any Series
        of
        Investor Notes, as otherwise stated in the applicable Indenture Supplement)
        or
        distinction.

       

       

      
        
          
          

        

        
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      Section
        3.2.    Transaction
        Documents

       

      (a)    Promptly
        following a request from the Indenture Trustee to do so and at the
        Administrator’s expense, the Issuer agrees to take all such lawful action as the
        Indenture Trustee may request to compel or secure the performance and observance
        by Holdings, SPV, the Origination Trust, the Intermediary, WBNA, the Servicer,
        the Administrator, VMS, PHH or PHH Consumer Lease or any other party to any
        of
        the Transaction Documents, as applicable, of each of their respective
        obligations under the Transaction Documents, in each case in accordance with
        the
        applicable terms thereof, and to exercise any and all rights, remedies, powers
        and privileges lawfully available to the Issuer to the extent and in the
        manner
        directed by the Indenture Trustee, including the transmission of notices
        of
        default thereunder and the institution of legal or administrative actions
        or
        proceedings to compel or secure performance by Holdings, SPV, the Origination
        Trust, the Intermediary, WBNA, the Servicer, the Administrator, VMS, PHH
        or PHH
        Consumer Lease or any other party to any of the Transaction Documents, as
        applicable, of each of their respective obligations under the Transaction
        Documents. If (i) the Issuer shall have failed, within 30 days of receiving
        the
        direction of the Indenture Trustee, to take commercially reasonable action
        to
        accomplish such directions of the Indenture Trustee, (ii) the Issuer refuses
        to
        take any such action, or (iii) the Indenture Trustee reasonably determines
        that
        such action must be taken immediately, the Indenture Trustee may take such
        previously directed action and any related action permitted under the Indenture
        which the Indenture Trustee thereafter determines is appropriate (without
        the
        need under this provision or any other provision under the Indenture to direct
        the Issuer to take such action), on behalf of the Issuer and the Investor
        Noteholders.

       

      (b)    If
        an
        Event of Default has occurred and is continuing with respect to any Series
        of
        Outstanding Investor Notes, the Indenture Trustee may, and, at the direction
        (which direction shall be in writing) of the Holders of a Majority in Interest
        of such Series of Outstanding Investor Notes (or, if an Event of Default
        with
        respect to more than one Series of Investor Notes has occurred, a Majority
        in
        Interest of each Series of Investor Notes with respect to which an Event
        of
        Default shall have occurred) shall exercise all rights, remedies, powers,
        privileges and claims of the Issuer against Holdings, SPV, the Origination
        Trust, the Intermediary, WBNA, the Servicer, the Administrator, VMS, PHH
        or PHH
        Consumer Lease or any other party to any of the Transaction Documents under
        or
        in connection with any of the Transaction Documents, including the right
        or
        power to take any action to compel or secure performance or observance by
        Holdings, SPV, the Origination Trust, the Intermediary, WBNA, the Servicer,
        the
        Administrator, VMS, PHH, PHH Consumer Lease or any other party of each of
        their
        respective obligations to the Issuer thereunder and to give any consent,
        request, notice, direction, approval, extension or waiver under the Transaction
        Documents, and any right of the Issuer to take such action shall be suspended;
        provided that, if an Event of Default has occurred and is continuing with
        respect to less than all Series of Outstanding Investor Notes, the Indenture
        Trustee may not take any action hereunder that is detrimental to the rights
        of
        the Holders of the Investor Notes with respect to which no Event of Default
        shall have occurred. 

       

       

       

      
        
          
          

        

        
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      (c)    Without
        derogating from the absolute nature of the assignment granted to the Indenture
        Trustee under this Base Indenture or the rights of the Indenture Trustee
        hereunder, the Issuer agrees that, unless such action is specifically permitted
        hereunder or under the other Transaction Documents, it will not, without
        the
        prior written consent of the Holders of a Majority in Interest of each Series
        of
        Outstanding Notes, (i) amend, modify, waive, supplement, terminate or surrender,
        or agree to any amendment, modification, supplement, termination, waiver
        or
        surrender of, the terms of any of the Issuer Assets, including any of the
        Transaction Documents; provided that no consent of Investor Noteholders shall
        be
        required for any amendment, modification or waiver of or to any Transaction
        Document if (A)(1) such amendment, modification or waiver does not adversely
        affect in any material respect the Investor Noteholders of any Series of
        Investor Notes (as substantiated by an Opinion of Counsel to such effect)
        or (2)
        such amendment or modification is an amendment or modification to the LLC
        Agreement relating to the issuance of a series of Preferred Membership Interests
        and (B) the Rating Agency Condition is satisfied with respect to each affected
        Series of Investor Notes; or (ii) waive timely performance or observance
        by
        Holdings under the Loan Agreement, the Origination Trust under the Origination
        Trust Guaranty or the Origination Trust Security Agreement, SPV under the
        Nominee Lienholder Agreement, the Intermediary or WBNA under the Master Exchange
        Agreement or the Master Trust Agreement or the Origination Trust, VMS or
        the
        Servicer under the Origination Trust Documents. Upon the occurrence of a
        Servicer Termination Event, the Issuer will not, without the prior written
        consent of the Indenture Trustee or the Holders of a Majority in Interest
        of
        each Series of Outstanding Notes, terminate the Servicer and appoint a successor
        Servicer in accordance with the Servicing Agreement and will terminate the
        Servicer and appoint a successor Servicer in accordance with the Servicing
        Agreement if so directed by the Indenture Trustee or the Holders of a Majority
        in Interest of each Series of Outstanding Notes.

       

      Section
        3.3.    Release
        of Issuer Assets

       

      (a)    The
        Indenture Trustee shall when required by the provisions of the Indenture
        execute
        instruments to release property from the lien of the Base Indenture, or convey
        the Indenture Trustee’s interest in the same, in a manner and under
        circumstances that are not inconsistent with the provisions of the Indenture.
        No
        party relying upon an instrument executed by the Indenture Trustee as provided
        in this Section
        3.3
        shall be
        bound to ascertain the Indenture Trustee’s authority, inquire into the
        satisfaction of any conditions precedent or see to the application of any
        moneys.

       

      (b)    The
        Indenture Trustee shall, at such time as there are no Investor Notes
        Outstanding, release any remaining portion of the Issuer Assets that secured
        the
        Investor Notes from the lien of the Indenture and release to the Issuer any
        funds then on deposit in the Issuer Accounts. The Indenture Trustee shall
        release property from the lien of the Indenture pursuant to this Section
        3.3(b)
        only
        upon receipt of an Issuer Order accompanied by an Officer’s Certificate, an
        Opinion of Counsel and (if the Indenture is qualified under the TIA and the
        TIA
        so requires) Independent Certificates in accordance with TIA §§ 314(c) and
        314(d)(1) meeting the applicable requirements of Section
        13.1.

       

       

      
        
          
          

        

        
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      Section
        3.4.    Opinions
        of Counsel

       

       

      The
        Indenture Trustee shall receive at least seven days’ notice when requested by
        the Issuer to take any action pursuant to Section
        3.3(a),
        accompanied by copies of any instruments involved, and the Indenture Trustee
        may
        also require as a condition of such action, an Opinion of Counsel, in form
        and
        substance satisfactory to the Indenture Trustee, stating the legal effect
        of any
        such action, outlining the steps required to complete the same, and concluding
        that all such action will not materially and adversely impair the security
        for
        the Investor Notes or the rights of the Investor Noteholders; provided,
        however
        that
        such Opinion of Counsel shall not be required to express an opinion as to
        the
        fair value of the Issuer Assets. Counsel rendering any such opinion may rely,
        without independent investigation, on the accuracy and validity of any
        certificate or other instrument delivered to the Indenture Trustee in connection
        with any such action.

       

      Section
        3.5.    Stamp,
        Other Similar Taxes and Filing Fees

       

      The
        Issuer shall indemnify and hold harmless the Indenture Trustee and each Investor
        Noteholder from any present or future claim for liability for any stamp or
        other
        similar tax and any penalties or interest with respect thereto, that may
        be
        assessed, levied or collected by any jurisdiction in connection with the
        Indenture or any Collateral. The Issuer shall pay, or reimburse the Indenture
        Trustee for, any and all amounts in respect of, all search, filing, recording
        and registration fees, taxes, excise taxes and other similar imposts that
        may be
        payable or determined to be payable in respect of the execution, delivery,
        performance and/or enforcement of the Indenture.

       

      ARTICLE
        4. 

       

      REPORTS 

       

      Section
        4.1.    Servicer
        Reports

       

      The
        Issuer will deliver or cause to be delivered to the Indenture
        Trustee:

       

      (i)    prior
        to
        1:00 p.m. (New York City time) on each Deposit Date, a copy of the Deposit
        Report (a “Deposit
        Report”)
        prepared and delivered by the Servicer to the Issuer pursuant to the Origination
        Trust Servicing Agreement, setting forth the aggregate amount of Collections
        deposited in the Collection Account on such Deposit Date. whether directly
        or as
        a result of transfers from a Joint Collection Account;

       

      (ii)    on
        each
        Determination Date, a copy of the Settlement Statement (a “Settlement
        Statement”)
        prepared and delivered by the Servicer to the Issuer pursuant to the Origination
        Trust Servicing Agreement, setting forth the information required to be set
        forth therein under the Origination Trust Servicing Agreement and each Indenture
        Supplement and such other information as the Indenture Trustee may reasonably
        request;

       

      (iii)    within
        ten Business Days of the last Business Day of each fiscal quarter of the
        Issuer,
        a copy of the Quarterly Compliance Certificate (a “Quarterly
        Compliance Certificate”)
        prepared and delivered by the Servicer pursuant to the Origination Trust
        Servicing Agreement, setting forth the information required to be set forth
        therein under the Origination Trust Servicing Agreement; 

       

       

      
        
          
          

        

        
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      (iv)    on
        or
        before March 31 of each year, a copy of the Annual Servicing Report (an
“Annual
        Servicing Report”)
        prepared by the Servicer’s independent auditors in accordance with the
        Origination Trust Servicing Agreement, setting forth the information required
        to
        be set forth therein under the Origination Trust Servicing
        Agreement;

       

      (v)    within
        45
        days following the end of each fiscal quarter of the Servicer, a copy of
        the
        certificate prepared and delivered by the Servicer pursuant Section 8.3(b)
        of
        the Origination Trust Servicing Agreement; 

       

      (vi)    promptly
        upon the delivery by the Servicer to the Issuer, a copy of any other
        information, reports or other materials required to be delivered by the Servicer
        to the Issuer pursuant to the Origination Trust Servicing
        Agreement;

       

      (vii)    from
        time
        to time such additional information regarding the financial position, results
        of
        operations or business of the Origination Trust, VMS or PHH as the Indenture
        Trustee may reasonably request to the extent that the Servicer delivers such
        information to the Issuer pursuant to the Origination Trust Servicing Agreement;
        and

       

      (viii)    at
        the
        time of delivery of the item described in clause
        (iii)
        above, a
        certificate of an officer of the Issuer that, except as provided in any
        certificate delivered in accordance with Section
        8.8,
        no
        Amortization Event, Potential Amortization Event, Loan Event of Default,
        Default
        or Event of Default under any of the Transaction Documents to which it is
        a
        party has occurred or is continuing during such fiscal quarter.

       

      Section
        4.2.    Communication
        to Investor Noteholders

       

      (a)    If
        the
        Indenture is qualified under the TIA, the Investor Noteholders may communicate
        pursuant to TIA §312(b) with other Investor Noteholders with respect to
        their rights under the Indenture or under the Investor Notes.

       

      (b)    If
        the
        Indenture is qualified under the TIA, the Issuer, the Indenture Trustee and
        the
        Transfer Agent and Registrar shall have the protection of TIA
§312(c).

       

      Section
        4.3.    Rule
        144A Information

       

      For
        so
        long as any of the Investor Notes are “restricted securities” within the meaning
        of Rule 144(a)(3) under the Securities Act, the Issuer agrees to provide
        to any
        Investor Noteholder or Beneficial Owner and to any prospective purchaser
        of
        Investor Notes designated by such Investor Noteholder or Beneficial Owner
        upon
        the request of such Investor Noteholder or Beneficial Owner or prospective
        purchaser, any information required to be provided to such holder or prospective
        purchaser to satisfy the conditions set forth in Rule 144A(d)(4) under the
        Securities Act.

       

      Section
        4.4.    Reports
        by the Issuer

       

      (a)    Unless
        otherwise specified in the related Indenture Supplement, on each Settlement
        Date, the Issuer shall deliver to the Indenture Trustee or the Paying Agent
        and
        the Indenture Trustee or the Paying Agent, as the case may be, shall forward
        to
        each Investor Noteholder of each Outstanding Series the Monthly Settlement
        Statement with respect to such Series, with a copy to the Rating
        Agencies.

       

       

      
        
          
          

        

        
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      (b)    As
        soon
        as available, but in any event within 90 days after the end of each fiscal
        year
        of the Issuer, the Issuer shall deliver to the Indenture Trustee or the Paying
        Agent and the Indenture Trustee or the Paying Agent, as the case may be,
        shall
        forward to each Investor Noteholder of each Outstanding Series a copy of
        the
        audited financial statements of the Issuer at the end of such year, prepared
        by
        independent certified public accountants of nationally recognized
        standing.

       

      (c)    Unless
        otherwise specified in the related Indenture Supplement, on or before January
        31
        of each calendar year, beginning with calendar year 2007, the Indenture Trustee
        or the Paying Agent shall furnish to each Person who at any time during the
        preceding calendar year was an Investor Noteholder of a Series of Investor
        Notes
        a statement prepared by or on behalf of the Issuer containing the information
        which is required to be contained in the Monthly Settlement Statements with
        respect to such Series of Investor Notes aggregated for such calendar year
        or
        the applicable portion thereof during which such Person was an Investor
        Noteholder, together with such other customary information (consistent with
        the
        treatment of the Investor Notes as debt) as the Issuer deems necessary or
        desirable to enable the Investor Noteholders to prepare their tax returns
        (each
        such statement, an “Annual
        Noteholders’ Tax Statement”).
        Such
        obligations of the Issuer to prepare and the Indenture Trustee or the Paying
        Agent to distribute the Annual Noteholders’ Tax Statement shall be deemed to
        have been satisfied to the extent that substantially comparable information
        shall be provided by the Indenture Trustee or the Paying Agent pursuant to
        any
        requirements of the Code as from time to time in effect.

       

      Section
        4.5.    Reports
        by the Indenture Trustee

       

      If
        the
        Indenture is qualified under the TIA, within 60 days after each March 31,
        beginning on March 31 in the first year after the Indenture is qualified
        under
        the TIA, if required by TIA § 313(a), the Indenture Trustee shall mail to each
        Investor Noteholder as required by TIA § 313(c) a brief report dated as of such
        date that complies with TIA § 313(a). The Indenture Trustee also shall comply
        with TIA § 313(b). A copy of such each report at the time of its mailing to
        Investor Noteholders shall be filed by the Indenture Trustee with the Securities
        and Exchange Commission and each stock exchange, if any, on which the Investor
        Notes are listed. The Issuer shall notify the Indenture Trustee if and when
        the
        Investor Notes are listed on any stock exchange. 

       

      ARTICLE
        5.

       

      ALLOCATION
        AND APPLICATION OF COLLECTIONS

       

      Section
        5.1.    Collection
        Account

       

      (a)    Establishment
        of Collection Account.
        On or
        prior to the date hereof, the Issuer, the Collection Account Securities
        Intermediary and the Indenture Trustee shall have entered into the Collection
        Account Control Agreement pursuant to which the Collection Account shall
        be
        established and maintained for the benefit of the Investor Noteholders. If
        at
        any time a Responsible Officer of the Indenture Trustee obtains knowledge
        that
        the Collection Account is no longer an Eligible Deposit Account, the Indenture
        Trustee shall, within 30 days of obtaining such knowledge, cause the Collection
        Account to be moved to a Qualified Trust Institution or Qualified Institution
        and cause the depositary maintaining the new Collection Account to assume
        the
        obligations of the existing Collection Account Securities Intermediary under
        the
        Collection Account Control Agreement. 

       

       

       

      
        
          
          

        

        
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      (b)    Series
        Accounts.
        If so
        provided in the related Indenture Supplement, the Indenture Trustee, for
        the
        benefit of the Investor Noteholders, shall cause to be established and
        maintained, one or more Series Accounts and/or administrative sub-accounts
        of
        the Collection Account to facilitate the proper allocation of Collections
        in
        accordance with the terms of such Indenture Supplement. Each such Series
        Account
        shall bear a designation clearly indicating that the funds deposited therein
        are
        held for the benefit of the Investor Noteholders of such Series. Each such
        Series Account will be an Eligible Deposit Account, if so provided in the
        related Indenture Supplement and will have the other features and be applied
        as
        set forth in the related Indenture Supplement.

       

      (c)    Administration
        of the Collection Account.
        The
        Issuer shall instruct the institution maintaining the Collection Account
        in
        writing to invest the funds on deposit in the Collection Account in Permitted
        Investments. Any such investment shall mature and such funds shall be available
        for withdrawal on or prior to the Transfer Date related to the Monthly Period
        in
        which such funds were processed for collection, or if so specified in the
        related Indenture Supplement, on the immediately succeeding Payment Date.
        In the
        absence of written investment instructions hereunder, funds on deposit in
        the
        Collection Account shall remain uninvested. Neither the Issuer nor the Indenture
        Trustee shall 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 principal of such Permitted Investment. 

       

      (d)    Establishment
        of Joint Collection Accounts.
        To
        facilitate the collection of and to allow for the identification and separation
        of funds that are Relinquished Property Proceeds from funds that are
        Non-Qualified Funds, the Indenture Trustee shall establish and maintain,
        in the
        joint name of the Indenture Trustee and the Intermediary, one or more Joint
        Collection Accounts that shall each be an Eligible Deposit Account and
        administered and operated as provided in this Base Indenture and the Master
        Exchange Agreement. If at any time a Responsible Officer of the Indenture
        Trustee obtains knowledge that a Joint Collection Account is no longer an
        Eligible Deposit Account, the Indenture Trustee shall, within 30 days of
        obtaining such knowledge, establish in conjunction with the Intermediary
        a new
        Joint Collection Account that is an Eligible Deposit Account and transfer
        into
        the new Joint Collection Account all cash and investments from the
        non-qualifying Joint Collection Account.

       

      Section
        5.2.    Gain
        on Sale Account

       

      (a)    Establishment
        of Gain on Sale Account.
        On or
        prior to the date hereof, the Issuer, the Gain on Sale Account Securities
        Intermediary and the Indenture Trustee shall have entered into the Gain on
        Sale
        Account Control Agreement pursuant to which the Gain on Sale Account shall
        be
        established and maintained for the benefit of the Investor Noteholders. If
        at
        any time a Responsible Officer of the Indenture Trustee obtains knowledge
        that
        the Gain on Sale Account is no longer an Eligible Deposit Account, the Indenture
        Trustee shall, within 30 days of obtaining such knowledge, cause the Gain
        on
        Sale Account to be moved to a Qualified Trust Institution or Qualified
        Institution and cause the depositary maintaining the new Gain on Sale Account
        to
        assume the obligations of the existing Gain on Sale Account Securities
        Intermediary under the Gain on Sale Account Control Agreement. 

       

       

       

      
        
          
          

        

        
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      (b)    Investment
        of Funds in the Gain on Sale Account.
        The
        Issuer shall instruct the institution maintaining the Gain on Sale Account
        in
        writing to invest the funds on deposit in the Gain on Sale Account in Permitted
        Investments. Any such investment shall mature and such funds shall be available
        for withdrawal on or prior to each Transfer Date. In the absence of written
        investment instructions hereunder, funds on deposit in the Gain on Sale Account
        shall remain uninvested. Neither the Issuer nor the Indenture Trustee shall
        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 principal
        of such Permitted Investment. 

       

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

       

      (d)    Deposits
        to Gain on Sale Account.
        Amounts
        will be deposited in the Gain on Sale Account in accordance with this
Article
        5,
        as
        modified by any Indenture Supplement.

       

      (e)    Withdrawals
        from Gain on Sale Account.
        No
        later than 2:00 p.m. (New York City time) on each Transfer Date, the Issuer
        shall direct the Indenture Trustee in writing to withdraw from the Gain on
        Sale
        Account an amount equal to the lesser of (x) the Monthly Residual Value Loss
        for
        the immediately preceding Monthly Period and (y) the amount then on deposit
        in
        the Gain on Sale Account and deposit such amount into the Collection Account
        for
        allocation in accordance with Article
        5,
        as
        modified by any Indenture Supplement. On any Transfer Date on which the amount
        on deposit in the Gain on Sale Account (after giving effect to any withdrawals
        therefrom pursuant to the immediately preceding sentence) is greater than
        an
        amount equal to the Applicable Gain on Sale Account Percentage of the sum
        of the
        aggregate Lease Balance of each Eligible Lease that is a Closed-End Lease
        allocated to the Lease SUBI as of last day of the Monthly Period immediately
        preceding such Transfer Date and the Aggregate Residual Value Amount as of
        such
        date, the Issuer shall direct the Indenture Trustee in writing to withdraw
        such
        excess from the Gain on Sale Account and deposit it in the Issuer General
        Account.

       

      Section
        5.3.    Collection
        of Money.
        

       

      Except
        as
        otherwise provided herein, the Indenture Trustee may demand payment or delivery
        of, and shall receive and collect, directly and without intervention or
        assistance of any fiscal agent or other intermediary, all money and other
        property payable to or receivable by the Indenture Trustee pursuant to the
        Indenture. The Indenture Trustee shall apply all such money received by it
        as
        provided in the Indenture. Except as otherwise provided in the Indenture,
        if any
        default occurs in the making of any payment or performance under any agreement
        or instrument that is part of the Issuer Assets, the Indenture Trustee may
        take
        such action as may be appropriate to enforce such payment or performance,
        including the institution and prosecution of appropriate proceedings. Any
        such
        action shall be without prejudice to any right to claim a Default or Event
        of
        Default under the Indenture and any right to proceeds thereafter as provided
        in
Article
        9.

       

      Section
        5.4.    Collections
        and Allocations.

       

      (a)    Collections
        in General.
        Until
        the Indenture is terminated pursuant to Section
        11.1,
        the
        Issuer shall, and the Indenture Trustee is authorized to, cause all Collections
        due and to become due to the Issuer or the Indenture Trustee, as the case
        may
        be, under or in connection with the Collateral to be paid directly to the
        Indenture Trustee for deposit into the Collection Account. The Issuer agrees
        that if any Collections shall be received by the Issuer in an account other
        than
        the Collection Account, such monies, instruments, cash and other proceeds
        will
        not be commingled by the Issuer with any of its other funds or property,
        if any,
        but will be held separate and apart therefrom and shall be held in trust
        by the
        Issuer for, and immediately remitted to, the Indenture Trustee, with any
        necessary endorsement. All monies, instruments, cash and other proceeds received
        by the Indenture Trustee pursuant to this Base Indenture shall be in immediately
        available funds and shall be immediately deposited in the Collection Account
        and
        shall be applied as provided in this Article
        5.
        

       

       

      
        
          
          

        

        
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      (b)    Allocations
        for Investor Noteholders.
        On each
        Deposit Date, the Issuer shall allocate Collections deposited into the
        Collection Account in accordance with this Article
        5
        and
        shall instruct the Indenture Trustee to withdraw the required amounts from
        the
        Collection Account and make the required deposits in any Series Account in
        accordance with this Article
        5,
        as
        modified by any Indenture Supplement. The Issuer shall make such deposits
        or
        payments on the date indicated therein in immediately available funds or
        as
        otherwise provided in the Indenture Supplement for any Series with respect
        to
        such Series. The Administrator, on behalf of the Issuer, has agreed to furnish
        to the Indenture Trustee or the Paying Agent, as applicable, written
        instructions to make the aforementioned withdrawals and payments from the
        Collection Account and any Issuer Accounts specified herein or in an Indenture
        Supplement. The Indenture Trustee and the Paying Agent shall promptly follow
        any
        such written instructions. 

       

      (c)    Sharing
        Collections.
        In the
        manner described in the related Indenture Supplement, to the extent that
        Collections that are allocated to any Series on a Deposit Date are not needed
        to
        make payments to Investor Noteholders of such Series or required to be deposited
        in a Series Account for such Series on such Deposit Date, such Collections
        may,
        at the direction of the Issuer, be applied to cover principal payments due
        to or
        for the benefit of Investor Noteholders of another Series. Any such reallocation
        will not result in a reduction in the Invested Amount of the Series to which
        such Collections were initially allocated.

       

      (d)    Allocations
        After Certain Events of Default.
        After
        each Outstanding Series of Investor Notes shall have been declared to be
        immediately due and payable pursuant to Section
        9.2
        as a
        result of the occurrence of an Event of Default defined in clause
        (a)
        or
(b)
        of
Section
        9.1,
        to the
        extent that Collections that are allocated to any Series of Investor Notes
        on a
        Settlement Date are not needed to make payments of principal of, or interest
        on,
        the Investor Notes of such Series, such Collections shall be applied to cover
        principal payments due on the Investor Notes of all other Series then
        Outstanding on a pro rata basis based on the Invested Percentages of such
        other
        Series of Investor Notes.

       

      Section
        5.5.    Joint
        Collection Account Disputes

       

      .
        If the
        Indenture Trustee receives notice pursuant to Section 4.2(c) of the Master
        Exchange Agreement that the Intermediary has disapproved of any proposed
        transfer of funds from a Joint Collection Account to the Collection Account
        that
        are required pursuant to the Master Exchange Agreement to be applied to repay
        the Loans, the Indenture Trustee may, and upon written direction of the
        Administrator or the Holders of a Majority in Interest of any Series shall,
        deliver a certification to the Intermediary setting forth the amounts due
        and
        owing in respect of the Loan Agreement.

       

      [THE
        REMAINDER OF ARTICLE 5 IS RESERVED AND MAY BE SPECIFIED IN ANY INDENTURE
        SUPPLEMENT WITH RESPECT TO ANY SERIES.]

       

       

      
        
          
          

        

        
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      ARTICLE
        6.

       

      DISTRIBUTIONS 

       

      Section
        6.1.    Distributions
        in General

       

      (a)    Unless
        otherwise specified in the applicable Indenture Supplement, on each Payment
        Date, the Paying Agent shall pay to the Investor Noteholders of each Series
        of
        record on the preceding Record Date the amounts payable thereto hereunder
        by
        wire transfer or check mailed first-class postage prepaid to such Investor
        Noteholder at the address for such Investor Noteholder appearing in the Note
        Register except that with respect to Investor Notes registered in the name
        of a
        Clearing Agency or its nominee, such amounts shall be payable by wire transfer
        of immediately available funds released by the Indenture Trustee or the Paying
        Agent from the applicable Series Account no later than Noon (New York City
        time)
        on the Payment Date for credit to the account designated by such Clearing
        Agency
        or its nominee, as applicable. The final payment of any Definitive Note,
        however, will be made only upon presentation and surrender of such Definitive
        Note at the offices or agencies specified in the notice of final distribution
        with respect to such Definitive Note on a Payment Date which is a business
        day
        in the place of presentation.

       

      (b)    Unless
        otherwise specified in the applicable Indenture Supplement (i) all distributions
        to Investor Noteholders of all Classes within a Series of Investor Notes
        will
        have the same priority and (ii) in the event that on any date of determination
        the amount available to make payments to the Investor Noteholders of a Series
        is
        not sufficient to pay all sums required to be paid to such Investor Noteholders
        on such date, then each Class of Investor Noteholders will receive its ratable
        share (based upon the aggregate amount due to such Class of Investor
        Noteholders) of the aggregate amount available to be distributed in respect
        of
        the Investor Notes of such Series.

       

      Section
        6.2.    Optional
        Repurchase of Investor Notes

       

      On
        any
        Payment Date occurring on or after the date on which the Invested Amount
        of any
        Series or Class of such Series is equal to or less than the Repurchase Amount
        (if any) for such Series or Class set forth in the Indenture Supplement related
        to such Series, or at such other time otherwise provided for in the Indenture
        Supplement relating to such Series, the Issuer shall have the option to purchase
        all Outstanding Investor Notes of such Series, or Class of such Series, at
        a
        purchase price (determined after giving effect to any payment of principal
        and
        interest on such Payment Date) equal to (unless otherwise specified in the
        related Indenture Supplement) the Invested Amount of such Series, or Class
        of
        such Series, on such Payment Date, plus
        accrued
        and unpaid interest on the unpaid principal balance of the Investor Notes
        of
        such Series, or Class of such Series (calculated at the Investor Note Rate
        of
        such Series or Class) through the day immediately prior to the date of such
        purchase plus,
        if
        provided for in the related Indenture Supplement, any premium payable at
        such
        time. The Issuer shall give the Indenture Trustee at least 10 Business Days’
prior written notice of the date on which the Issuer intends to exercise
        such
        option to purchase. Not later than 12:00 Noon (New York City time) on such
        Payment Date, an amount of the purchase price equal to the Invested Amount
        of
        all Investor Notes of such Series or Class of such Series on such Payment
        Date
        and the amount of accrued and unpaid interest with respect to such Investor
        Notes and any applicable premium will be deposited into the applicable Series
        Account for such Series in immediately available funds. The funds deposited
        into
        such Series Account or distributed to the Paying Agent will be passed through
        in
        full to the Investor Noteholders on such Payment Date.

       

       

      
        
          
          

        

        
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      ARTICLE
        7.

       

      REPRESENTATIONS
        AND WARRANTIES

       

      The
        Issuer hereby represents and warrants, for the benefit of the Indenture Trustee
        and the Noteholders, as follows as of each Series Closing Date:

       

      Section
        7.1.    Existence
        and Power

       

      The
        Issuer (a) is a limited liability company duly formed, validly existing and
        in
        good standing under the laws of the State of Delaware, (b) is duly qualified
        to
        do business as a foreign limited liability company and in good standing under
        the laws of each jurisdiction where the character of its property, the nature
        of
        its business or the performance of its obligations make such qualification
        necessary, and (c) has all powers and all governmental licenses, authorizations,
        consents and approvals required to carry on its business as now conducted
        and
        for purposes of the transactions contemplated by this Base Indenture and
        the
        other Transaction Documents.

       

      Section
        7.2.    Governmental
        Authorization

       

      The
        execution, delivery and performance by the Issuer of this Base Indenture,
        the
        related Indenture Supplement and the other Transaction Documents to which
        it is
        a party (a) is within the Issuer’s power, has been duly authorized by all
        necessary action, (b) requires no action by or in respect of, or filing with,
        any governmental body, agency or official which has not been obtained and
        (c)
        does not contravene, or constitute a default under, any Requirement of Law
        or
        any provision of its certificate of formation or the LLC Agreement or result
        in
        the creation or imposition of any Lien on any of the Issuer Assets, except
        for
        Liens created by the Indenture or the other Transaction Documents. This Base
        Indenture and each of the other Transaction Documents to which the Issuer
        is a
        party has been executed and delivered by a duly authorized officer of the
        Issuer.

       

      Section
        7.3.    Binding
        Effect

       

      This
        Base
        Indenture and each other Transaction Document is a legal, valid and binding
        obligation of the Issuer enforceable against the Issuer in accordance with
        its
        terms (except as such enforceability may be limited by bankruptcy, insolvency,
        fraudulent conveyance, reorganization, moratorium and other similar laws
        affecting creditors’ rights generally or by general equitable principles,
        whether considered in a proceeding at law or in equity and by an implied
        covenant of good faith and fair dealing).

       

      Section
        7.4.    Financial
        Information; Financial Condition

       

       

      All
        balance sheets, all statements of operations, of shareholders’ equity and of
        cash flow, and other financial data (other than projections) which have been
        or
        shall hereafter be furnished by the Issuer to the Indenture Trustee and the
        Rating Agencies pursuant to Section
        4.4
        have
        been and will be prepared in accordance with GAAP (to the extent applicable)
        and
        do and will present fairly the financial condition of the Issuer as of the
        dates
        thereof and the results of its operations for the periods covered thereby,
        subject, in the case of all unaudited statements, to normal year-end adjustments
        and lack of footnotes and presentation items.

       

       

       

      
        
          
          

        

        
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      Section
        7.5.    Litigation

       

      There
        is
        no action, suit or proceeding pending against or, to the knowledge of the
        Issuer, threatened against or affecting the Issuer before any court or
        arbitrator or any Governmental Authority that could materially adversely
        affect
        the financial position, results of operations, business, properties,
        performance, prospects or condition (financial or otherwise) of the Issuer
        or
        which in any manner draws into question the validity or enforceability of
        this
        Base Indenture, any Indenture Supplement or any other Transaction Document
        or
        the ability of the Issuer to perform its obligations hereunder or
        thereunder.

       

      Section
        7.6.    No
        ERISA Plan

       

      The
        Issuer has not established and does not maintain or contribute to any Pension
        Plan that is covered by Title IV of ERISA and will not do so, as long as
        any
        Investor Notes are Outstanding.

       

      Section
        7.7.    Tax
        Filings and Expenses

       

      The
        Issuer has filed all federal, state and local tax returns and all other tax
        returns which, to the knowledge of the Issuer, are required to be filed (whether
        informational returns or not), and has paid all taxes due, if any, pursuant
        to
        said returns or pursuant to any assessment received by the Issuer, except
        such
        taxes, if any, as are being contested in good faith and for which adequate
        reserves have been set aside on its books. The Issuer has paid all fees and
        expenses required to be paid by it in connection with the conduct of its
        business, the maintenance of its existence and its qualification as a foreign
        limited liability company authorized to do business in each State in which
        it is
        required to so qualify.

       

      Section
        7.8.    Disclosure

       

      All
        certificates, reports, statements, documents and other information furnished
        to
        the Indenture Trustee by or on behalf of the Issuer pursuant to any provision
        of
        this Base Indenture or any Transaction Document, or in connection with or
        pursuant to any amendment or modification of, or waiver under, this Base
        Indenture or any Transaction Document, shall, at the time the same are so
        furnished, be complete and correct to the extent necessary to give the Indenture
        Trustee true and accurate knowledge of the subject matter thereof in all
        material respects, and the furnishing of the same to the Indenture Trustee
        shall
        constitute a representation and warranty by the Issuer made on the date the
        same
        are furnished to the Indenture Trustee to the effect specified
        herein.

       

      Section
        7.9.    Investment
        Company Act

       

      The
        Issuer is not, and is not controlled by, an “investment company” within the
        meaning of, and is not required to register as an “investment company” under,
        the Investment Company Act of 1940. 

       

       

       

      
        
          
          

        

        
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      Section
        7.10.    Regulations
        T, U and X

       

      The
        proceeds of the Investor Notes will not be used to purchase or carry any
“margin
        stock” (as defined or used in the regulations of the Board of Governors of the
        Federal Reserve System, including Regulations T, U and X thereof). The Issuer
        is
        not engaged in the business of extending credit for the purpose of purchasing
        or
        carrying any margin stock.

       

      Section
        7.11.    No
        Consent

       

      No
        consent, action by or in respect of, approval or other authorization of,
        or
        registration, declaration or filing with, any Governmental Authority or other
        Person is required for the valid execution and delivery of this Base Indenture
        or any Indenture Supplement or for the performance of any of the Issuer’s
        obligations hereunder or thereunder or under any other Transaction Document
        other than such consents, approvals, authorizations, registrations, declarations
        or filings as shall have been obtained by the Issuer prior to the Initial
        Closing Date or as contemplated in Section 7.13.

       

      Section
        7.12.    Solvency

       

      Both
        before and after giving effect to the transactions contemplated by this Base
        Indenture and the other Transaction Documents, the Issuer is solvent within
        the
        meaning of the Bankruptcy Code and the Issuer is not the subject of any
        voluntary or involuntary case or proceeding seeking liquidation, reorganization
        or other relief with respect to itself or its debts under any bankruptcy
        or
        insolvency law and no Insolvency Event has occurred with respect to the
        Issuer.

       

      Section
        7.13.    Security
        Interests

       

      (a)    The
        Issuer owns and has good and marketable title to the Collateral, free and
        clear
        of all Liens other than Permitted Liens. The Loan Note constitutes an
“instrument” under the applicable UCC, the Collection Account and the Gain on
        Sale Account constitute “securities
        accounts” under the applicable UCC,
        and the
        remaining Collateral constitutes “general intangibles” under the applicable UCC.
        The Indenture constitutes a valid and continuing Lien on the Collateral in
        favor
        of the Indenture Trustee on behalf of the Investor Noteholders, which Lien
        will
        be prior to all other Liens (other than Permitted Liens), will be enforceable
        as
        such as against creditors of and purchasers from the Issuer in accordance
        with
        its terms, except as such enforceability may be limited by bankruptcy,
        insolvency, fraudulent conveyance, reorganization, moratorium and other similar
        laws affecting creditors’ rights generally or by general equitable principles,
        whether considered in a proceeding at law or in equity and by an implied
        covenant of good faith and fair dealing.

       

      (b)    Other
        than the security interest granted to the Indenture Trustee under the Indenture,
        the Issuer has not pledged, assigned, sold or granted a security interest
        in the
        Collateral. Each of the SUBI Certificates has been duly registered in the
        name
        of the Issuer, endorsed in blank, and delivered to the Indenture Trustee,
        the
        Loan Note has been endorsed in blank and delivered to the Indenture Trustee
        and
        all other action necessary (including the filing of UCC-1 financing statements)
        to protect and perfect the Indenture Trustee’s security interest in the
        Collateral now in existence and hereafter acquired or created has been duly
        and
        effectively taken.

       

       

       

      
        
          
          

        

        
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      (c)    No
        security agreement, financing statement, equivalent security or lien instrument
        or continuation statement listing the Issuer as debtor covering all or any
        part
        of the Collateral is on file or of record in any jurisdiction, except such
        as
        may have been filed, recorded or made by the Issuer in favor of the Indenture
        Trustee on behalf of the Investor Noteholders in connection with the
        Indenture.

       

      (d)    
        The
        Issuer’s legal name is Chesapeake Funding LLC and its location within the
        meaning of Section 9-307 of the applicable UCC is the State of Delaware.
        

       

      Section
        7.14.    Binding
        Effect of Certain Agreements

       

      Each
        of
        the Origination Trust Documents and the Loan Agreement is in full force and
        effect and there are no outstanding events of default thereunder nor have
        events
        occurred which, with the giving of notice, the passage of time or both, would
        constitute such an event of default.

       

      Section
        7.15.    Non-Existence
        of Other Agreements

       

      (a)    Other
        than as permitted by Section
        8.23,
        (i) the
        Issuer is not a party to any contract or agreement of any kind or nature
        and
        (ii) the Issuer is not subject to any obligations or liabilities of any kind
        or
        nature in favor of any third party, including, without limitation, Contingent
        Obligations.

       

      (b)    The
        Issuer has not engaged in any activities since its formation (other than
        those
        incidental to its formation and other appropriate actions including the proposed
        Loans, the authorization and the issue of the initial Series of Notes, the
        execution of the Transaction Documents to which it is a party and the
        performance of the activities referred to in or contemplated by such
        agreements).

       

      Section
        7.16.    Compliance
        with Contractual Obligations and Laws

       

      The
        Issuer is not (i) in violation of the LLC Agreement, (ii) in violation of
        any
        Requirement of Law to which it or its property or assets may be subject or
        (iii)
        in violation of any Contractual Obligation with respect to the Issuer.

       

      Section
        7.17.    Other
        Representations

       

      All
        representations and warranties of the Issuer made in each Transaction Document
        to which it is a party are true and correct and are repeated herein as though
        fully set forth herein.

       

      Section
        7.18.    Ownership
        of the Issuer

       

      All
        of
        the issued and outstanding common membership interests in the Issuer are
        owned
        by PHH Sub 2, all of which common membership interests have been validly
        issued,
        are fully paid and non-assessable and are owned of record by PHH Sub 2, free
        and
        clear of all Liens other than Permitted Liens. The Issuer has no Subsidiaries
        and owns no capital stock of, or other equity interest in, any other
        Person.

       

       

      
        
          
          

        

        
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      ARTICLE
        8.

       

      COVENANTS

       

      Section
        8.1.    Payment
        of Investor Notes

       

      The
        Issuer shall pay the principal of (and premium, if any) and interest on the
        Investor Notes pursuant to the provisions of this Base Indenture and any
        applicable Indenture Supplement. Principal and interest shall be considered
        paid
        on the date due if the Paying Agent holds on that date money designated for
        and
        sufficient to pay all principal and interest then due.

       

      Section
        8.2.    Maintenance
        of Office or Agency

       

      The
        Issuer will maintain in The City of New York, an office or agency where Investor
        Notes may be surrendered for registration of transfer or exchange. The Issuer
        hereby initially appoints the Transfer Agent and Registrar to serve as its
        agent
        for the foregoing purposes. In addition, Definitive Notes will be transferable
        or exchangeable at the offices of any co-transfer agent and co-registrar
        in
        Luxembourg appointed in accordance with the terms hereof. The Issuer will
        give
        prompt written notice to the Indenture Trustee of the location, and of any
        change in the location, of any such office or agency. If at any time the
        Issuer
        shall fail to maintain any such office or agency or shall fail to furnish
        the
        Indenture Trustee with the address thereof, such surrenders, notices and
        demands
        may be made or served at the Corporate Trust Office, and the Issuer hereby
        appoints the Indenture Trustee as its agent to receive all such surrenders,
        notices and demands.

       

      The
        Issuer may also from time to time designate one or more other offices or
        agencies where the Investor Notes may be presented or surrendered for any
        or all
        such purposes and may from time to time rescind such designations. The Issuer
        will give prompt written notice to the Indenture Trustee of any such designation
        or rescission and of any change in the location of any such other office
        or
        agency.

       

      The
        Issuer hereby designates the Corporate Trust Office of the Indenture Trustee
        as
        one such office or agency of the Issuer.

       

      Section
        8.3.    Payment
        of Obligations

       

      The
        Issuer will pay and discharge, at or before maturity, all of its respective
        material obligations and liabilities, including, without limitation, tax
        liabilities and other governmental claims, except where the same may be
        contested in good faith by appropriate proceedings, and will maintain, in
        accordance with GAAP, reserves as appropriate for the accrual of any of the
        same.

       

      Section
        8.4.    Conduct
        of Business and Maintenance of Existence

       

      The
        Issuer will keep in full effect its existence, rights and franchises as a
        limited liability company under the laws of the State of Delaware and will
        obtain and preserve its qualification to do business in each jurisdiction
        in
        which the failure to so qualify would have a material adverse effect on the
        business and operations of the Issuer or which qualification shall be necessary
        to protect the validity and enforceability of the Indenture, the Investor
        Notes
        and any instrument or agreement included in the Issuer Assets.

       

       

      
        
          
          

        

        
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      Section
        8.5.    Compliance
        with Laws

       

      The
        Issuer will comply in all respects with all Requirements of Law and all
        applicable laws, ordinances, rules, regulations, and requirements of
        Governmental Authorities (including, without limitation, ERISA and the rules
        and
        regulations thereunder) except where the necessity of compliance therewith
        is
        contested in good faith by appropriate proceedings and where such noncompliance
        would not materially and adversely affect the condition, financial or otherwise,
        operations, performance, properties or prospects of the Issuer or its ability
        to
        carry out the transactions contemplated in this Base Indenture and each other
        Transaction Document; provided,
        however,
        such
        noncompliance will not result in a Lien (other than a Permitted Lien) on
        any
        Issuer Asset.

       

      Section
        8.6.    Inspection
        of Property, Books and Records

       

      The
        Issuer will keep proper books of record and account in which full, true and
        correct entries shall be made of all dealings and transactions in relation
        to
        the Issuer Assets and its business activities in accordance with GAAP; and
        will
        permit the Indenture Trustee to visit and inspect any of its properties,
        to
        examine and make abstracts from any of its books and records and to discuss
        its
        affairs, finances and accounts with its officers, directors, employees and
        independent public accountants, all at such reasonable times upon reasonable
        notice and as often as may reasonably be requested.

       

      Section
        8.7.    Compliance
        with Transaction Documents; Issuer Assets

       

      (a)    The
        Issuer will not take any action and will use its best efforts not to permit
        any
        action to be taken by others that would release any Person from any of such
        Person’s covenants or obligations under any instrument or agreement included in
        the Issuer Assets or that would result in the amendment, hypothecation,
        subordination, termination or discharge of, or impair the validity or
        effectiveness of, any such instrument or agreement, except as expressly provided
        in this Base Indenture, any other Transaction Document or such other instrument
        or agreement.

       

      (b)    Promptly
        upon becoming aware of any default under any Transaction Document, the Issuer
        shall give the Indenture Trustee and the Rating Agencies notice
        thereof.

       

      (c)    The
        Issuer will punctually perform and observe all of its obligations and agreements
        contained in this Base Indenture, the other Transaction Documents and in
        the
        instruments and agreements included in the Issuer Assets, including but not
        limited to preparing (or causing to be prepared) and filing (or causing to
        be
        filed) all UCC financing statements and continuation statements required
        to be
        filed by the terms of the Indenture and the Loan Agreement in accordance
        with
        and within the time periods provided for herein and therein.

       

      (d)    The
        Issuer may contract with other Persons to assist it in performing its duties
        under the Indenture, and any performance of such duties by a Person identified
        to the Indenture Trustee in an Officer’s Certificate of the Issuer shall be
        deemed to be action taken by the Issuer. Initially, the Issuer has contracted
        with the Administrator to assist the Issuer in performing its duties under
        the
        Indenture.

       

       

      
        
          
          

        

        
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      Section
        8.8.    Notice
        of Defaults

       

      Promptly
        upon becoming aware of any Potential Amortization Event, Amortization Event,
        Potential Loan Event of Default, Loan Event of Default, Servicer Termination
        Event, Event of Default or Default under any of the Transaction Documents,
        the
        Issuer shall give the Indenture Trustee and the Rating Agencies written notice
        thereof, together with an Officer’s Certificate, setting forth the details
        thereof and any action with respect thereto taken or contemplated to be taken
        by
        the Issuer.

       

      Section
        8.9.    Notice
        of Material Proceedings

       

      Promptly
        upon becoming aware thereof, the Issuer shall give the Indenture Trustee
        and the
        Rating Agencies written notice of the commencement or existence of any
        proceeding by or before any Governmental Authority against or affecting the
        Issuer which is reasonably likely to have a material adverse effect on the
        business, condition (financial or otherwise), results of operations, properties
        or performance of the Issuer or the ability of the Issuer to perform its
        obligations under this Base Indenture or under any other Transaction Document
        to
        which it is a party.

       

      Section
        8.10.    Further
        Requests

       

      The
        Issuer will promptly furnish to the Indenture Trustee and the Rating Agencies
        such other information as, and in such form as, the Indenture Trustee or
        the
        Rating Agencies may reasonably request in connection with the transactions
        contemplated by the Indenture.

       

      Section
        8.11.    Protection
        of Issuer Assets

       

      The
        Issuer will from time to time prepare (or shall cause to be prepared), execute
        and deliver all such supplements and amendments hereto and all such financing
        statements, continuation statements, instruments of further assurance and
        other
        instruments, and will take such other action necessary or advisable
        to:

       

      (a)    maintain
        or preserve the lien and security interest (and the priority thereof) of
        the
        Indenture or carry out more effectively the purposes thereof;

       

      (b)    perfect,
        publish notice of or protect the validity of the lien and security interest
        created by the Indenture;

       

      (c)    enforce
        the rights of the Indenture Trustee and the Investor Noteholders in any of
        the
        Issuer Assets; or

       

      (d)    preserve
        and defend title to the Issuer Assets and the rights of the Indenture Trustee
        and the Investor Noteholders in such Issuer Assets against the claims of
        all
        persons and parties.

       

      The
        Indenture Trustee is hereby authorized to execute and file any financing
        statement, continuation statement or other instrument necessary or appropriate
        to perfect or maintain the perfection of the Indenture Trustee’s security
        interest in the Collateral. The Indenture Trustee shall have no obligation
        to
        prepare or determine the necessity for the filing of any financing statement,
        continuation statement or other instrument with respect to the perfection
        of the
        Indenture Trustee’s security interest in the Collateral 

       

       

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

       

      Section
        8.12.    Annual
        Opinion of Counsel

       

      On
        or
        before March 31 of each calendar year, commencing with March 31, 2007, the
        Issuer shall furnish to the Indenture Trustee an Opinion of Counsel either
        stating that, in the opinion of such counsel, such action has been taken
        with
        respect to the recording, filing, re-recording and refiling of the Base
        Indenture, any Indenture Supplement and any Supplement and any other requisite
        documents and with respect to the execution and filing of any financing
        statements and continuation statements as are necessary to maintain the
        perfection of the lien and security interest created by the Indenture and
        reciting the details of such action or stating that in the opinion of such
        counsel no such action is necessary to maintain the perfection of such lien
        and
        security interest. Such Opinion of Counsel shall also describe the recording,
        filing, re-recording and refiling of the Indenture, any Indenture Supplement
        and
        any Supplement and any other requisite documents and the execution and filing
        of
        any financing statements and continuation statements that will, in the opinion
        of such counsel, be required to maintain the perfection of the lien and security
        interest of the Indenture until March 31 in the following calendar
        year.

       

      Section
        8.13.    Liens

       

      The
        Issuer will not create, incur, assume or permit to exist any Lien upon any
        of
        the Issuer Assets (including the Collateral), other than Permitted
        Liens.

       

      Section
        8.14.    Other
        Indebtedness

       

      The
        Issuer will not create, assume, incur, suffer to exist or otherwise become
        or
        remain liable in respect of any Indebtedness other than (i) Indebtedness
        hereunder and (ii) Indebtedness permitted under any other Transaction
        Document.

       

      Section
        8.15.    Mergers

       

      The
        Issuer will not merge or consolidate with or into any other Person.

       

      Section
        8.16.    Sales
        of Issuer Assets

       

      The
        Issuer will not sell, lease, transfer, liquidate or otherwise dispose of
        any
        Issuer Assets, except as contemplated by the Transaction Documents unless
        directed to do so by the Indenture Trustee.

       

      Section
        8.17.    Acquisition
        of Assets

       

      The
        Issuer will not acquire, by long-term or operating lease or otherwise, any
        assets except in accordance with the terms of the Transaction
        Documents.

       

      Section
        8.18.    Distributions

       

      The
        Issuer will not declare any dividends on any of the Membership Interests
        or make
        any purchase, redemption or other acquisition of, any of the Membership
        Interests, other than as provided in the Transaction Documents. The Issuer
        will
        not redeem any Preferred Membership Interests if any such redemption would
        result in the occurrence of an Amortization Event with respect to any Series
        of
        Investor Notes Outstanding. The Issuer will not issue any series of Preferred
        Membership Interests unless, prior to such issuance, each Rating Agency confirms
        that after such issuance the Rating Agency Condition will be met.

       

       

      
        
          
          

        

        
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      Section
        8.19.    Legal
        Name; Location Under Section 9-301

       

      The
        Issuer will change neither its location (within the meaning of Section 9-301
        of
        the applicable UCC) nor its legal name without sixty (60) days’ prior written
        notice to the Indenture Trustee. In the event that the Issuer desires to
        so
        change its location or legal name, the Issuer will make any required filings
        and
        prior to actually changing its location or its legal name the Issuer will
        deliver to the Indenture Trustee (i) an Officer’s Certificate and an Opinion of
        Counsel confirming that all required filings have been made to continue the
        perfected interest of the Indenture Trustee on behalf of the Investor
        Noteholders in the Collateral in respect of the new location or new legal
        name
        of the Issuer and (ii) copies of all such required filings with the filing
        information duly noted thereon by the office in which such filings were
        made.

       

      Section
        8.20.    Organizational
        Documents

       

      The
        Issuer will not amend the LLC Agreement unless, prior to such amendment,
        each
        Rating Agency confirms that after such amendment the Rating Agency Condition
        will be met.

       

      Section
        8.21.    Investments

       

      The
        Issuer will not make, incur, or suffer to exist any loan, advance, extension
        of
        credit or other investment in any Person other than in accordance with the
        Transaction Documents and, in addition, without limiting the generality of
        the
        foregoing, the Issuer will not cause the Indenture Trustee to make any Permitted
        Investments on the Issuer’s behalf that would have the effect of causing the
        Issuer to be an “investment company” within the meaning of the Investment
        Company Act.

       

      Section
        8.22.    No
        Other Agreements

       

      The
        Issuer will not enter into or be a party to any agreement or instrument other
        than any Transaction Document or documents and agreements incidental
        thereto.

       

      Section
        8.23.    Other
        Business

       

      The
        Issuer will not engage in any business or enterprise or enter into any
        transaction other than making the Loans pursuant to the Loan Agreement, funding
        the Loans through the issuance and sale of Investor Notes, issuing Membership
        Interests pursuant to the LLC Agreement, incurring and paying ordinary course
        operating expenses and other activities related to or incidental to any of
        the
        foregoing.

       

      Section
        8.24.    Maintenance
        of Separate Existence

       

      The
        Issuer will do all things necessary to continue to be readily distinguishable
        from VMS, PHH Sub 2, PHH and the Affiliates of each of the foregoing and
        maintain its existence separate and apart from that of VMS, PHH Sub 2, PHH
        and
        the Affiliates of each of the foregoing including, without
        limitation:

       

       

      
        
          
          

        

        
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      (i)    practicing
        and adhering to organizational formalities, such as maintaining appropriate
        books and records; 

       

      (ii)    observing
        all organizational formalities in connection with all dealings between itself
        and VMS, PHH Sub 2, PHH and the Affiliates of each of the foregoing or any
        other
        unaffiliated entity; 

       

      (iii)    observing
        all procedures required by its certificate of formation and the LLC Agreement
        and the laws of the State of Delaware; 

       

      (iv)    acting
        solely in its name and through its duly authorized officers or agents in
        the
        conduct of its businesses; 

       

      (v)    managing
        its business and affairs by or under the direction of the Managers;

       

      (vi)    ensuring
        that its Authorized Officers duly authorize all of its actions; 

       

      (vii)    ensuring
        the receipt of proper authorization, when necessary, in accordance with the
        terms of the LLC Agreement for its actions; 

       

      (viii)    owning
        or
        leasing (including through shared arrangements with Affiliates) all office
        furniture and equipment necessary to operate its business; 

       

      (ix)    maintaining
        at least one Manager who is an Independent Manager;

       

      (x)    not
        (A)
        having or incurring any indebtedness to VMS, PHH Sub 2, PHH or any Affiliates
        of
        VMS, PHH Sub 2 or PHH; (B) guaranteeing or otherwise becoming liable for
        any
        obligations of VMS, PHH Sub 2, PHH or any Affiliates of VMS, PHH Sub 2 or
        PHH;
        (C) having obligations guaranteed by VMS, PHH Sub 2 or PHH or any Affiliates
        of
        VMS, PHH Sub 2 or PHH; (D) holding itself out as responsible for debts of
        VMS,
        PHH Sub 2, PHH or any Affiliates of VMS, PHH Sub 2 or PHH or for decisions
        or
        actions with respect to the affairs of VMS, PHH Sub 2, PHH or any Affiliates
        of
        VMS, PHH Sub 2 or PHH; (E) operating or purporting to operate as an
        integrated, single economic unit with respect to VMS, PHH Sub 2 or PHH or
        any
        Affiliates of VMS, PHH Sub 2 or PHH or any other unaffiliated entity; (F)
        seeking to obtain credit or incur any obligation to any third party based
        upon
        the assets of VMS, PHH Sub 2 or PHH or any Affiliates of VMS, PHH Sub 2 or
        PHH
        or any other unaffiliated entity; (G) induce any such third party to reasonably
        rely on the creditworthiness of VMS, PHH Sub 2 or PHH or any Affiliates of
        VMS,
        PHH Sub 2 or PHH or any other unaffiliated entity; and (H) being directly
        or
        indirectly named as a direct or contingent beneficiary or loss payee on any
        insurance policy of VMS, PHH Sub 2, PHH or any Affiliates of VMS, PHH Sub
        2 or
        PHH other than as required by the Transaction Documents with respect to
        insurance on the Leased Vehicles; 

       

      (xi)    other
        than as provided in the Transaction Documents, maintaining its deposit and
        other
        bank accounts and all of its assets separate from those of any other Person;
        

       

       

      
        
          
          

        

        
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      (xii)    maintaining
        its financial records separate and apart from those of any other Person;
        

       

      (xiii)    not
        suggesting in any way, within its financial statements, that its assets are
        available to pay the claims of creditors of VMS, PHH Sub 2, PHH, any Affiliates
        of VMS, PHH Sub 2 or PHH or any other affiliated or unaffiliated entity;
        

       

      (xiv)    compensating
        all its employees, officers, consultants and agents for services provided
        to it
        by such Persons out of its own funds or reimbursing any of its Affiliates
        in
        respect of amounts paid by such Affiliates for such services; 

       

      (xv)    maintaining
        office space separate and apart from that of VMS, PHH Sub 2 or PHH or any
        Affiliates of VMS, PHH Sub 2 or PHH (even if such office space is subleased
        from
        or is on or near premises occupied by VMS, PHH Sub 2, PHH or any Affiliates
        of
        VMS, PHH Sub 2 or PHH) and a telephone number separate and apart from that
        of
        VMS, PHH Sub 2 or PHH or any Affiliates of VMS, PHH Sub 2 or PHH;

       

      (xvi)    conducting
        all oral and written communications, including, without limitation, letters,
        invoices, purchase orders, contracts, statements, and applications solely
        in its
        own name; 

       

      (xvii)    having
        separate stationery from VMS, PHH Sub 2, PHH, any Affiliates of VMS, PHH
        Sub 2
        or PHH or any other unaffiliated entity; 

       

      (xviii)    accounting
        for and managing all of its liabilities separately from those of VMS, PHH
        Sub 2,
        PHH or any Affiliates of VMS, PHH Sub 2 or PHH;

       

      (xix)    allocating,
        on an arm’s length basis, all shared corporate operating services, leases and
        expenses, including, without limitation, those associated with the services
        of
        shared consultants and agents and shared computer and other office equipment
        and
        software; and otherwise maintaining an arm’s-length relationship with each of
        VMS, PHH Sub 2, PHH, any Affiliates of VMS, PHH Sub 2 or PHH or any other
        unaffiliated entity; 

       

      (xx)    refraining
        from filing or otherwise initiating or supporting the filing of a motion
        in any
        bankruptcy or other insolvency proceeding involving VMS, PHH Sub 2, PHH or
        any
        Affiliate of VMS, PHH Sub 2 or PHH to substantively consolidate VMS, PHH
        Sub 2,
        PHH or any Affiliate of VMS, PHH Sub 2 or PHH with the Issuer; 

       

      (xxi)    remaining
        solvent; and 

       

      (xxii)    conducting
        all of its business (whether written or oral) solely in its own name so as
        not
        to mislead others as to the identity of each of the Issuer, Holdings, VMS,
        PHH
        Sub 2, PHH Sub 1, PHH and any Affiliates of the Issuer, Holdings, VMS, PHH
        Sub
        2, PHH Sub 1 or PHH.

       

      Section
        8.25.    Use
        of
        Proceeds of Investor Notes

       

      The
        Issuer shall use the net proceeds of each Series of Investor Notes in accordance
        with the provisions of the related Indenture Supplement.

       

       

      
        
          
          

        

        
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      Section
        8.26.    No
        ERISA Plan

       

      The
        Issuer will not establish or maintain or contribute to any Pension Plan that
        is
        covered by Title IV of ERISA.

       

      ARTICLE
        9.

       

      REMEDIES

       

      Section
        9.1.    Events
        of Default

       

      “Event
        of Default”,
        wherever used herein, with respect to any Series of Investor Notes, means
        any
        one of the following events (whatever the reason for such Event of Default
        and
        whether it shall be voluntary or involuntary or be effected by operation
        of law
        or pursuant to any judgment, decree or order of any court or any order, rule
        or
        regulation of any administrative or governmental body):

       

      (a)    default
        in the payment of any interest on any Investor Note of any Series when the
        same
        becomes due and payable, and such default shall continue for a period of
        five
        Business Days;

       

      (b)    default
        in the payment of the principal of any Investor Note of any Series when the
        same
        becomes due and payable;

       

      (c)    default
        in the observance or performance of any covenant or agreement of the Issuer
        made
        in the Indenture (other than a covenant or agreement, a default in the
        observance or performance of which is elsewhere in this Section specifically
        dealt with) which default materially and adversely affects the rights of
        the
        Investor Noteholders of such Series, and which default shall continue or
        not be
        cured for a period of 30 days (or for such longer period, not in excess of
        60
        days, as may be reasonably necessary to remedy such default; provided
        that
        such default is capable of remedy within 60 days or less and the Issuer delivers
        an Officer’s Certificate to the Indenture Trustee to the effect that the Issuer
        has commenced, or will promptly commence and diligently pursue, all reasonable
        efforts to remedy such default) after there shall have been given, by registered
        or certified mail, to the Issuer by the Indenture Trustee or to the Issuer
        and
        the Indenture Trustee by Investor Noteholders of such Series holding Investor
        Notes evidencing at least 25% of the Invested Amount of each Class of Investor
        Notes of such Series, a written notice specifying such default and requiring
        it
        to be remedied and stating that such notice is a “Notice of Default”
hereunder;

       

      (d)    the
        Issuer at any time receives a final determination that it will be treated
        as an
        association taxable as a corporation for federal income tax
        purposes;

       

      (e)    the
        Securities and Exchange Commission or other regulatory body having jurisdiction
        reaches a final determination that the Issuer is an “investment company” within
        the meaning of the Investment Company Act; or

       

      (f)    an
        Insolvency Event shall have occurred with respect to the Issuer.

       

       

      
        
          
          

        

        
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      Section
        9.2.    Acceleration
        of Maturity; Rescission and Annulment

       

      If
        an
        Event of Default referred to in clause (f)
        of
Section
        9.2
        has
        occurred, the unpaid principal amount of all Series of Investor Notes, together
        with interest accrued but unpaid thereon, and all other amounts due to the
        Investor Noteholders under the Indenture, shall immediately and without further
        act become due and payable. If an Event of Default referred to in clause
        (a),
        (b),
        (d)
        or
        (e)
        of
Section
        9.1
        has
        occurred, then the Indenture Trustee or the Holders of a Majority in Interest
        of
        each Series of Outstanding Investor Notes may declare all of the Investor
        Notes
        to be immediately due and payable, by a notice in writing to the Issuer (and
        to
        the Indenture Trustee if given by the Investor Noteholders), and upon any
        such
        declaration the unpaid principal amount of the Investor Notes, together with
        accrued and unpaid interest thereon through the date of acceleration, shall
        become immediately due and payable. If an Event of Default referred to in
        clause
        (c)
        of
Section
        9.1
        shall
        occur and be continuing with respect to any Series of Investor Notes, then
        and
        in every such case the Indenture Trustee or Holders of a Majority in Interest
        of
        such Series of Investor Notes may declare all the Investor Notes of such
        Series
        to be immediately due and payable, by a notice in writing to the Issuer (and
        to
        the Indenture Trustee if given by the Investor Noteholders), and upon any
        such
        declaration the unpaid principal amount of such Investor Notes, together
        with
        accrued and unpaid interest thereon through the date of acceleration, shall
        become immediately due and payable.

       

      At
        any
        time after such declaration of acceleration of maturity has been made with
        respect to the Investor Notes (or a particular Series of Investor Notes)
        and
        before a judgment or decree for payment of the money due has been obtained
        by
        the Indenture Trustee as hereinafter in this Article
        9,
        provided,
        the
        Holders of a Majority in Interest of each Series of Outstanding Investor
        Notes
        (or, in the case of the acceleration of a particular Series of Investor Notes,
        the Holders of a Majority in Interest of the Investor Notes of such Series),
        by
        written notice to the Issuer and the Indenture Trustee, may rescind and annul
        such declaration and its consequences; provided,
        that,
        no such rescission shall affect any subsequent default or impair any right
        consequent thereto.

       

      Section
        9.3.    Collection
        of Indebtedness and Suits for Enforcement by the Indenture
        Trustee

       

      (a)    The
        Issuer covenants that if (i) default is made in the payment of any interest
        on
        any Investor Note when the same becomes due and payable, and such default
        continues for a period of five Business Days or (ii) default is made in the
        payment of the principal of any Investor Note when the same becomes due and
        payable, by acceleration or at stated maturity, the Issuer will, upon demand
        of
        the Indenture Trustee, pay to it, for the benefit of the Holders of such
        Investor Notes, the whole amount then due and payable on such Investor Notes
        for
        principal and interest, with interest upon the overdue principal, and, to
        the
        extent payment at such rate of interest shall be legally enforceable, upon
        overdue installments of interest, at the Note Rate borne by the Investor
        Notes,
        and in addition thereto such further amount as shall be sufficient to cover
        the
        costs and expenses of collection, including the reasonable compensation,
        expenses, disbursements and advances of the Indenture Trustee and its agents
        and
        counsel.

       

      (b)    In
        case
        the Issuer shall fail forthwith to pay such amounts upon such demand, the
        Indenture Trustee, in its own name and as trustee of an express trust, may
        institute a proceeding for the collection of the sums so due and unpaid,
        and may
        prosecute such proceeding to judgment or final decree, and may enforce the
        same
        against the Issuer or other obligor upon such Investor Notes and collect
        in the
        manner provided by law out of the property of the Issuer or other obligor
        upon
        such Investor Notes, wherever situated, the moneys adjudged or decreed to
        be
        payable.

       

       

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

        

      

       

      (c)    If
        an
        Event of Default occurs and is continuing, the Indenture Trustee may, as
        more
        particularly provided in Section
        9.4,
        in its
        discretion, proceed to protect and enforce its rights and the rights of the
        Investor Noteholders, by such appropriate proceedings as the Indenture Trustee
        shall deem most effective to protect and enforce any such rights, whether
        for
        the specific enforcement of any covenant or agreement in the Indenture or
        in aid
        of the exercise of any power granted herein, or to enforce any other proper
        remedy or legal or equitable right vested in the Indenture Trustee by the
        Indenture or by law.

       

      (d)    In
        case
        there shall be pending, relative to the Issuer, any other obligor upon the
        Investor Notes, Holdings or any Person having or claiming an ownership interest
        in the Issuer Assets, proceedings under the Bankruptcy Code or any other
        applicable Federal or state bankruptcy, insolvency or other similar law,
        or in
        case a receiver, assignee or trustee in bankruptcy or reorganization,
        liquidator, sequestrator or similar official shall have been appointed for
        or
        taken possession of the Issuer or its property or such other obligor, Holdings
        or such Person or the property of such other obligor, Holdings or such Person,
        or in the case of any other comparable judicial proceedings relative to the
        Issuer, other obligor upon the Investor Notes, Holdings or such Person or
        to the
        creditors or property of the Issuer, such other obligor, Holdings or such
        Person, the Indenture Trustee, irrespective of whether the principal of any
        Investor Notes shall then be due and payable as therein expressed or by
        declaration or otherwise and irrespective of whether the Indenture Trustee
        shall
        have made any demand pursuant to the provisions of this Section, shall be
        entitled and empowered, by intervention in such proceedings or
        otherwise:

       

      (i)    to
        file
        and prove a claim or claims for the whole amount of principal and interest
        owing
        and unpaid in respect of the Investor Notes and to file such other papers
        or
        documents as may be necessary or advisable in order to have the claims of
        the
        Indenture Trustee (including any claim for reasonable compensation to the
        Indenture Trustee and each predecessor Indenture Trustee, and their respective
        agents, attorneys and counsel, and for reimbursement of all expenses and
        liabilities incurred, and all advances made, by the Indenture Trustee and
        each
        predecessor Indenture Trustee, except as a result of negligence, bad faith
        or
        willful misconduct) and of the Investor Noteholders allowed in such
        proceedings;

       

      (ii)    unless
        prohibited by applicable law and regulations, to vote on behalf of the Holders
        of the Investor Notes in any election of a trustee, a standby trustee or
        person
        performing similar functions in any such proceedings;

       

      (iii)    to
        collect and receive any moneys or other property payable or deliverable on
        any
        such claims and to distribute all amounts received with respect to the claims
        of
        the Investor Noteholders and of the Indenture Trustee on their behalf;
        and

       

      (iv)    to
        file
        such proofs of claim and other papers or documents as may be necessary or
        advisable in order to have the claims of the Indenture Trustee or the Holders
        of
        the Investor Notes allowed in any judicial proceedings relative to the Issuer,
        such other obligor upon the Investor Notes, Holdings, any Person claiming
        an
        ownership interest in the Issuer Assets, their respective creditors and their
        property;

       

       

       

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

       

      and
        any
        trustee, receiver, liquidator, custodian or other similar official in any
        such
        proceeding is hereby authorized by each of such Investor Noteholders to make
        payments to the Indenture Trustee, and, in the event that the Indenture Trustee
        shall consent to the making of payments directly to such Investor Noteholders,
        to pay to the Indenture Trustee such amounts as shall be sufficient to cover
        reasonable compensation to the Indenture Trustee, each predecessor Indenture
        Trustee and their respective agents, attorneys and counsel, and all other
        expenses and liabilities incurred, and all advances made, by the Indenture
        Trustee and each predecessor Indenture Trustee except as a result of negligence
        or bad faith.

       

      (e)    Nothing
        herein contained shall be deemed to authorize the Indenture Trustee to authorize
        or consent to or vote for or accept or adopt on behalf of any Investor
        Noteholder any plan of reorganization, arrangement, adjustment or composition
        affecting the Investor Notes or the rights of any Holder thereof or to authorize
        the Indenture Trustee to vote in respect of the claim of any Investor Noteholder
        in any such proceeding except, as aforesaid, to vote for the election of
        a
        trustee in bankruptcy or similar person.

       

      (f)    All
        rights of action and of asserting claims under the Indenture, or under any
        of
        the Investor Notes, may be enforced by the Indenture Trustee without the
        possession of any of the Investor Notes or the production thereof in any
        trial
        or other proceedings relative thereto, and any such action or proceedings
        instituted by the Indenture Trustee shall be brought in its own name as trustee
        of an express trust, and any recovery of judgment, subject to the payment
        of the
        expenses, disbursements and compensation of the Indenture Trustee, each
        predecessor Indenture Trustee and their respective agents and attorneys,
        shall
        be for the ratable benefit of the Holders of the Investor Notes.

       

      (g)    In
        any
        proceedings brought by the Indenture Trustee (and also any proceedings involving
        the interpretation of any provision of the Indenture to which the Indenture
        Trustee shall be a party), the Indenture Trustee shall be held to represent
        all
        the Holders of the Investor Notes, and it shall not be necessary to make
        any
        Investor Noteholder a party to any such proceedings.

       

      Section
        9.4.    Remedies;
        Priorities

       

      (a)    If
        an
        Event of Default shall have occurred and be continuing with respect to any
        Series of Outstanding Investor Notes and such Series of Investor Notes has
        been
        accelerated under Section
        9.4,
        the
        Indenture Trustee may institute proceedings to enforce the obligations of
        the
        Issuer hereunder in its own name and as trustee of an express trust for the
        collection of all amounts then payable on the Investor Notes of such Series
        or
        under the Indenture with respect thereto, whether by declaration or otherwise,
        enforce any judgment obtained, and collect from the Issuer and any other
        obligor
        upon such Investor Notes moneys adjudged due.

       

      (b)    If
        an
        Event of Default shall have occurred and be continuing with respect to all
        Series of Outstanding Investor Notes and all Series of Outstanding Investor
        Notes have been accelerated under Section
        9.2,
        the
        Indenture Trustee (subject to Section
        9.5)
        may do
        one or more of the following:

       

      (i)    institute
        proceedings from time to time for the complete or partial foreclosure of
        the
        Indenture with respect to the Issuer Assets;

       

       

      
        
          
          

        

        
          39

          
            

          

        

        
          
          

        

      

       

      (ii)    exercise
        any remedies of a secured party under the UCC and take any other appropriate
        action to protect and enforce the rights and remedies of the Indenture Trustee
        and the Holders of the Investor Notes; and

       

      (iii)    in
        the
        case of an Event of Default referred to in clause (a)
        or
(b)
        of
Section
        9.1,
        sell
        the Issuer Assets or any portion thereof or rights or interest therein, at
        one
        or more public or private sales called and conducted in any manner permitted
        by
        law;

       

      provided
        that the
        Indenture Trustee may not sell or otherwise liquidate the Issuer Assets
        following an Event of Default referred to in clause (a)
        or
(b)
        of
Section
        9.1,
        unless
        (A) the Holders of Investor Notes representing 100% of the Aggregate Invested
        Amount consent thereto, (B) the proceeds of such sale or liquidation
        distributable to the Investor Noteholders are sufficient to discharge in
        full
        all amounts then due and unpaid upon the Investor Notes for principal and
        interest, or (C) (1) the Indenture Trustee determines that the Issuer Assets
        will not continue to provide sufficient funds for the payment of principal
        of
        and interest on the Investor Notes as they would have become due if the Investor
        Notes had not been declared due and payable and (2) the Indenture Trustee
        obtains the consent of a Majority in Interest of the Holders of each Series
        of
        Outstanding Investor Notes. In determining such sufficiency or insufficiency
        with respect to clause (B) and (C), the Indenture Trustee may, but need not,
        obtain and rely upon an opinion of an Independent investment banking or
        accounting firm of national reputation as to the feasibility of such proposed
        action and as to the sufficiency of the Issuer Assets for such
        purpose.

       

      (c)    If
        the
        Indenture Trustee collects any money or property pursuant to this Article
        9,
        such
        money or property shall be held by the Indenture Trustee as additional
        collateral hereunder and the Indenture Trustee shall pay out such money or
        property in the following order:

       

      FIRST:
        to
        the Indenture Trustee for amounts due under Section
        10.6;
        and

       

      SECOND:
        to the Collection Account for distribution in accordance with the provisions
        of
Article
        5.

       

      Section
        9.5.    Optional
        Preservation of the Issuer Assets

       

      If
        the
        Investor Notes of each Series Outstanding have been declared to be due and
        payable under Section
        9.2
        following an Event of Default and such declaration and its consequences have
        not
        been rescinded and annulled, the Indenture Trustee may, but need not, elect
        to
        maintain possession of the Issuer Assets. It is the desire of the parties
        hereto
        and the Investor Noteholders that there be at all times sufficient funds
        for the
        payment of principal of and interest on the Investor Notes, and the Indenture
        Trustee shall take such desire into account when determining whether to maintain
        possession of the Issuer Assets. In determining whether to maintain possession
        of the Issuer Assets, the Indenture Trustee may, but need not, obtain and
        rely
        upon an opinion of an Independent investment banking or accounting firm of
        national reputation as to the feasibility of such proposed action and as
        to the
        sufficiency of the Issuer Assets for such purpose. Nothing contained in this
        Section
        9.5
        shall be
        construed to require the Indenture Trustee to preserve the Issuer Assets
        securing the Issuer Obligations if prohibited by applicable law or if the
        Indenture Trustee is authorized, directed or permitted to liquidate the Issuer
        Assets pursuant to Section
        9.4(b).

       

       

       

      
        
          
          

        

        
          40

          
            

          

        

        
          
          

        

      

      Section
        9.6.    Limitation
        on Suits

       

      No
        Holder
        of any Investor Note shall have any right to institute any proceeding, judicial
        or otherwise, with respect to the Indenture, or for the appointment of a
        receiver or trustee, or for any other remedy thereunder, unless:

       

      (a)    such
        Holder has previously given written notice to the Indenture Trustee of a
        continuing Event of Default;

       

      (b)    Holders
        of each Series of Outstanding Investor Notes holding Investor Notes evidencing
        at least 25% of each Class of Investor Notes of such Series have made written
        request to the Indenture Trustee to institute such proceeding in respect
        of such
        Event of Default in its own name as the Indenture Trustee
        hereunder;

       

      (c)    such
        Holder or Holders have offered to the Indenture Trustee indemnity reasonably
        satisfactory to it against the costs, expenses and liabilities to be incurred
        in
        complying with such request;

       

      (d)    the
        Indenture Trustee for 60 days after its receipt of such notice, request and
        offer of indemnity has failed to institute such proceedings; and

       

      (e)    no
        direction inconsistent with such written request has been given to the Indenture
        Trustee during such 60-day period by the Holders of a Majority in Interest
        of
        each Series of Outstanding Investor Notes;

       

      it
        being
        understood and intended that no one or more Holders of the Investor Notes
        shall
        have any right in any manner whatever by virtue of, or by availing of, any
        provision of the Indenture to affect, disturb or prejudice the rights of
        any
        other Holders of the Investor Notes or to obtain or to seek to obtain priority
        or preference over any other Holders or to enforce any right under the
        Indenture, except in the manner herein provided.

       

      In
        the
        event the Indenture Trustee shall receive conflicting or inconsistent requests
        and indemnity from two or more groups of Holders of Investor Notes, each
        representing less than a Majority in Interest of each Series of Outstanding
        Investor Notes, the Indenture Trustee shall act at the direction of the group
        of
        Holders of Investor Notes with the greater amount of Investor Notes, however,
        should the Indenture Trustee receive conflicting or inconsistent requests
        on
        indemnity from two or more groups of Holders with an equal amount of Investor
        Notes the Indenture Trustee in its sole discretion may determine what action,
        if
        any, shall be taken, notwithstanding any other provisions of the
        Indenture.

       

      Section
        9.7.    Unconditional
        Rights of Investor Noteholders to Receive Principal and
        Interest

       

      Notwithstanding
        any other provisions in the Indenture, the Holder of any Investor Note shall
        have the right, which is absolute and unconditional, to receive payment of
        the
        principal of and interest, if any, on such Investor Note on or after the
        respective due dates thereof expressed in such Investor Note or in the Indenture
        and to institute suit for the enforcement of any such payment, and such right
        shall not be impaired without the consent of such Holder.

       

       

      
        
          
          

        

        
          41

          
            

          

        

        
          
          

        

      

       

      Section
        9.8.    Restoration
        of Rights and Remedies

       

      If
        the
        Indenture Trustee or any Investor Noteholder has instituted any Proceeding
        to
        enforce any right or remedy under the Indenture and such Proceeding has been
        discontinued or abandoned for any reason or has been determined adversely
        to the
        Indenture Trustee or to such Investor Noteholder, then and in every such
        case
        the Issuer, the Indenture Trustee and the Investor Noteholders shall, subject
        to
        any determination in such Proceeding, be restored severally and respectively
        to
        their former positions hereunder, and thereafter all rights and remedies
        of the
        Indenture Trustee and the Investor Noteholders shall continue as though no
        such
        Proceeding had been instituted.

       

      Section
        9.9.    Rights
        and Remedies Cumulative

       

      No
        right
        or remedy herein conferred upon or reserved to the Indenture Trustee or to
        the
        Investor Noteholders is intended to be exclusive of any other right or remedy,
        and every right and remedy shall, to the extent permitted by law, be cumulative
        and in addition to every other right and remedy given hereunder or now or
        hereafter existing at law or in equity or otherwise. The assertion or employment
        of any right or remedy hereunder, or otherwise, shall not prevent the concurrent
        assertion or employment of any other appropriate right or remedy.

       

      Section
        9.10.    Delay
        or Omission Not a Waiver

       

      No
        delay
        or omission of the Indenture Trustee or any Holder of any Investor Note to
        exercise any right or remedy accruing upon any Default or Event of Default
        shall
        impair any such right or remedy or constitute a waiver of any such Default
        or
        Event of Default or an acquiescence therein. Every right and remedy given
        by
        this Article
        9
        or by
        law to the Indenture Trustee or to the Investor Noteholders may be exercised
        from time to time, and as often as may be deemed expedient, by the Indenture
        Trustee or by the Investor Noteholders, as the case may be.

       

      Section
        9.11.    Control
        by Investor Noteholders

       

       

      The
        Holders of a Majority in Interest of each Series of Outstanding Investor
        Notes
        shall have the right to direct the time, method and place of conducting any
        proceeding for any remedy available to the Indenture Trustee with respect
        to the
        Investor Notes or exercising any trust or power conferred on the Indenture
        Trustee; provided
        that

       

      (a)    such
        direction shall not be in conflict with any rule of law or with the
        Indenture;

       

      (b)    if
        an
        Event of Default is with respect to less than all Series of Outstanding Investor
        Notes, then the Indenture Trustee’s rights and remedies shall be limited to the
        rights and remedies pertaining only to those Series of Investor Notes with
        respect to which such Event of Default has occurred and the Indenture Trustee
        shall exercise such rights and remedies at the direction of the Holders of
        a
        Majority in Interest of all such Series of Investor Notes;

       

      (c)    subject
        to the express terms of Section
        9.4,
        any
        direction to the Indenture Trustee to sell or liquidate the Issuer Assets
        shall
        be by the Holders of Investor Notes representing not less than 100% of the
        Aggregate Invested Amount;

       

       

      
        
          
          

        

        
          42

          
            

          

        

        
          
          

        

      

       

      (d)    if
        the
        conditions set forth in Section
        9.5
        have
        been satisfied and the Indenture Trustee elects to retain the Issuer Assets
        pursuant to such Section, then any direction to the Indenture Trustee by
        Holders
        of Investor Notes representing less than 100% of the Aggregate Invested Amount
        to sell or liquidate the Issuer Assets shall be of no force and
        effect;

       

      (e)    the
        Indenture Trustee may take any other action deemed proper by the Indenture
        Trustee that is not inconsistent with such direction; and

       

      (f)    such
        direction shall be in writing;

       

      provided,
        further,
        that,
        subject to Section
        10.1,
        the
        Indenture Trustee need not take any action that it determines might involve
        it
        in liability or might materially adversely affect the rights of any Investor
        Noteholders not consenting to such action.

       

      Section
        9.12.    Waiver
        of Past Defaults

       

      Prior
        to
        the declaration of the acceleration of the maturity of the Investor Notes
        of any
        Series as provided in Section
        9.2,
        the
        Holders of the Investor Notes of not less than a Majority in Interest of
        such
        Series of Outstanding Investor Notes may, on behalf of all such Holders,
        waive
        any past Default or Event of Default and its consequences except a Default
        (a)
        in payment of principal of or interest on any of the Investor Notes or (b)
        in
        respect of a covenant or provision hereof which cannot be modified or amended
        without the consent of the Holder of each Investor Note. In the case of any
        such
        waiver, the Issuer, the Indenture Trustee and the Holders of the Investor
        Notes
        of such Outstanding Series shall be restored to their former positions and
        rights hereunder, respectively; but no such waiver shall extend to any
        subsequent or other Default or impair any right consequent thereto.

       

      Upon
        any
        such waiver, such Default shall cease to exist and be deemed to have been
        cured
        and not to have occurred, and any Event of Default arising therefrom shall
        be
        deemed to have been cured and not to have occurred, for every purpose of
        the
        Indenture; but no such waiver shall extend to any subsequent or other Default
        or
        Event of Default or impair any right consequent thereto. The Issuer shall
        give
        prompt written notice of any waiver to the Rating Agencies.

       

      Section
        9.13.    Undertaking
        for Costs

       

      All
        parties to the Indenture agree, and each Holder of any Investor Note by such
        Holder’s acceptance thereof shall be deemed to have agreed, that any court may
        in its discretion require, in any suit for the enforcement of any right or
        remedy under the Indenture, or in any suit against the Indenture Trustee
        for any
        action taken, suffered or omitted by it as the Indenture Trustee, the filing
        by
        any party litigant in such Proceeding of an undertaking to pay the costs
        of such
        Proceeding, and that such court may in its discretion assess reasonable costs,
        including reasonable attorneys’ fees, against any party litigant in such
        Proceeding, having due regard to the merits and good faith of the claims
        or
        defenses made by such party litigant; but the provisions of this Section
        shall
        not apply to (a) any suit instituted by the Indenture Trustee, (b) any suit
        instituted by any Investor Noteholder or group of Investor Noteholders, in
        each
        case holding in the aggregate more than 10% of the Invested Amount of any
        Series
        of Investor Notes, or (c) any suit instituted by any Investor Noteholder
        for the
        enforcement of the payment of principal of or interest on any Investor Note
        on
        or after the respective due dates expressed in such Investor Note and in
        the
        Indenture.

       

       

      
        
          
          

        

        
          43

          
            

          

        

        
          
          

        

      

       

      Section
        9.14.    Waiver
        of Stay or Extension Laws

       

      The
        Issuer covenants (to the extent that it may lawfully do so) that it will
        not at
        any time insist upon, or plead or in any manner whatsoever, claim or take
        the
        benefit or advantage of, any stay or extension law wherever enacted, now
        or at
        any time hereafter in force, that may affect the covenants or the performance
        of
        the Indenture; and the Issuer (to the extent that it may lawfully do so)
        hereby
        expressly waives all benefit or advantage of any such law, and covenants
        that it
        will not hinder, delay or impede the execution of any power herein granted
        to
        the Indenture Trustee, but will suffer and permit the execution of every
        such
        power as though no such law had been enacted.

       

      Section
        9.15.    Action
        on Investor Notes

       

      The
        Indenture Trustee’s right to seek and recover judgment on the Investor Notes or
        under the Indenture shall not be affected by the seeking, obtaining or
        application of any other relief under or with respect to the Indenture. Neither
        the lien of the Indenture nor any rights or remedies of the Indenture Trustee
        or
        the Investor Noteholders shall be impaired by the recovery of any judgment
        by
        the Indenture Trustee against the Issuer or by the levy of any execution
        under
        such judgment upon any portion of the Issuer Assets or upon any of the assets
        of
        the Issuer.

       

      ARTICLE
        10.

       

      THE
        INDENTURE TRUSTEE

       

      Section
        10.1.    Duties
        of the Indenture Trustee

       

      (a)    If
        an
        Amortization Event or Event of Default has occurred and is continuing, the
        Indenture Trustee shall exercise such of the rights and powers vested in
        it by
        the Indenture, and use the same degree of care and skill in their exercise,
        as a
        prudent man would exercise or use under the circumstances in the conduct
        of his
        own affairs.

       

      (b)    The
        Indenture Trustee, upon receipt of all resolutions, certificates, statements,
        opinions, reports, documents, orders or other instruments furnished to the
        Indenture Trustee which are specifically required to be furnished pursuant
        to
        any provision of this Base Indenture or any of the other Transaction Documents,
        shall examine them to determine whether they substantially conform to the
        requirements of this Base Indenture or such other Transaction Document, as
        the
        case may be; provided, however, that the Indenture Trustee shall not be
        responsible for the content of any resolution, certificate, statement, opinion,
        report, document, order or other instrument furnished by the Servicer, the
        Administrator or the Issuer hereunder.

       

      (c)    Subject
        to subsection 10.1(a),
        no
        provision of the Indenture shall be construed to relieve the Indenture Trustee
        from liability for its own negligent action, its own negligent failure to
        act or
        its own bad faith or willful misconduct; provided,
        however,
        that:

       

      (i)    the
        Indenture Trustee shall not be liable for an error of judgment made in good
        faith by a Responsible Officer of the Indenture Trustee, unless it shall
        be
        proved that the Indenture Trustee was negligent in ascertaining the pertinent
        facts nor shall the Indenture Trustee be liable with respect to any action
        it
        takes or omits to take in good faith in accordance with the Indenture or
        in
        accordance with a direction received by it pursuant to Section
        9.11;

       

       

      
        
          
          

        

        
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      (ii)    the
        Indenture Trustee shall not be charged with knowledge of any Event of Default
        unless a Responsible Officer of the Indenture Trustee obtains actual knowledge
        thereof or receives written notice thereof;

       

      (iii)    the
        Indenture Trustee shall not be charged with knowledge of any failure by any
        Person to comply with its obligations under the Transaction Documents unless
        a
        Responsible Officer of the Indenture Trustee obtains actual knowledge of
        such
        failure or receives written notice thereof;

       

      (iv)    prior
        to
        the occurrence of an Amortization Event or an Event of Default, and after
        the
        curing of all such Amortization Events or Events of Default which may have
        occurred, the duties and obligations of the Indenture Trustee shall be
        determined solely by the express provisions of the Indenture, the Indenture
        Trustee shall be obligated to perform only such duties and obligations as
        are
        specifically set forth in the Indenture and no implied covenants or obligations
        shall be read into the Indenture against the Indenture Trustee;

       

      (v)    anything
        in the Indenture to the contrary notwithstanding, in no event shall the
        Indenture Trustee be liable for special, indirect or consequential loss or
        damage of any kind whatsoever (including but not limited to lost profits),
        even
        if the Indenture Trustee has been advised of the likelihood of such loss
        or
        damage and regardless of the form of action; and

       

      (vi)    subject
        to the other provisions of the Indenture and without limiting the generality
        of
        this Section
        10.01,
        the
        Indenture Trustee shall have no duty (A) to record, file, or deposit this
        Base
        Indenture, the Transaction Documents or any agreement referred to herein
        or
        therein or any financing statement or continuation statement evidencing a
        security interest, or to maintain any such recording or filing or depositing
        or
        to rerecord, refile, or redeposit any thereof, (B) to insure the Issuer Assets
        and (C) to pay or discharge any tax, assessment, or other governmental charge
        or
        any lien or encumbrance of any kind owing with respect to assessed or levied
        against, any part of the Collateral other than from funds available in the
        Collection Account.

       

      (d)    The
        Indenture Trustee shall not be required to expend or risk its own funds or
        otherwise incur financial liability in the performance of any of its duties
        hereunder, or in the exercise of any of its rights or powers, if there is
        reasonable ground for believing that the repayment of such funds or adequate
        indemnity against such risk or liability is not reasonably assured to it,
        and
        none of the provisions contained in the Indenture shall in any event require
        the
        Indenture Trustee to perform, or be responsible for the manner of performance
        of, any of the obligations of any Person under any of the Transaction
        Documents.

       

      (e)    Except
        for actions expressly authorized by the Indenture, the Indenture Trustee
        shall
        take no action reasonably likely to impair the security interests created
        hereunder in any of the Issuer Assets now existing or hereafter created or
        to
        impair the value of any of the Issuer Assets now existing or hereafter
        created.

       

       

      
        
          
          

        

        
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      (f)    In
        the
        event that the Paying Agent or the Transfer Agent and Registrar shall fail
        to
        perform any obligation, duty or agreement in the manner or on the day required
        to be performed by the Paying Agent or the Transfer Agent and Registrar,
        as the
        case may be, under the Indenture, the Indenture Trustee shall be obligated
        promptly to perform such obligation, duty or agreement in the manner so
        required.

       

      Section
        10.2.    Rights
        of the Indenture Trustee

       

      Except
        as
        otherwise provided by Section
        10.1:

       

      (a)    The
        Indenture Trustee may conclusively rely and shall be fully protected in acting
        or refraining from acting based upon any document believed by it to be genuine
        and to have been signed by or presented by the proper person.

       

      (b)    The
        Indenture Trustee may consult with counsel of its selection and the written
        advice of such counsel or any Opinion of Counsel shall be full and complete
        authorization and protection from liability in respect of any action taken,
        suffered or omitted by it hereunder in good faith and in reliance
        thereon.

       

      (c)    The
        Indenture Trustee may act through agents, custodians and nominees and shall
        not
        be liable for any misconduct or negligence on the part of, or for the
        supervision of, any such agent, custodian or nominee so long as such agent,
        custodian or nominee is appointed with due care. 

       

      (d)    The
        Indenture Trustee shall not be liable for any action it takes or omits to
        take
        in good faith which it believes to be authorized or within its rights or
        powers
        conferred upon it by the Indenture; provided,
        that
        the Indenture Trustee’s conduct does not constitute willful misconduct,
        negligence or bad faith.

       

      (e)    Prior
        to
        the occurrence of an Event of Default and after the curing of all Events
        of
        Default that may have occurred, the Indenture Trustee shall be under no
        obligation to institute, conduct or defend any litigation hereunder or in
        relation hereto and shall not be bound to make any investigation into the
        facts
        or matters stated in any resolution, certificate, statement, instrument,
        opinion, report, notice, request, consent, order, approval, bond, or other
        paper
        or document, unless requested in writing to do so by Holders of the Investor
        Notes evidencing not less than 25% of the Invested Amount of any Series of
        Investor Notes; provided,
        however,
        that if
        the payment within a reasonable time to the Indenture Trustee of the costs,
        expenses, or liabilities likely to be incurred by it in instituting, conducting
        or defending any litigation hereunder or in relation hereto or in the making
        of
        such investigation shall be, in the opinion of the Indenture Trustee, not
        reasonably assured to the Indenture Trustee by the security afforded to it
        by
        the terms of the Indenture, the Indenture Trustee may require reasonable
        indemnity against such cost, expense, or liability or payment of such expenses
        as a condition precedent to so proceeding. The reasonable expense of every
        such
        examination shall be paid by the Issuer or by the Administrator at the direction
        of the Issuer or, if paid by the Indenture Trustee, shall be reimbursed by
        the
        Issuer or by the Administrator at the direction of the Issuer upon demand.
        

       

      (f)    The
        Indenture Trustee shall not be liable for any losses or liquidation penalties
        in
        connection with Permitted Investments, unless such losses or liquidation
        penalties were incurred through the Indenture Trustee’s own willful misconduct,
        negligence or bad faith.

       

       

      
        
          
          

        

        
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      (g)    The
        Indenture Trustee shall not be liable for the acts or omissions of any successor
        to the Indenture Trustee so long as such acts or omissions were not the result
        of the negligence, bad faith or willful misconduct of JPMorgan
        Chase.

       

      (h)    The
        right
        of the Indenture Trustee to perform any discretionary act enumerated in the
        Indenture shall not be construed as a duty, and the Indenture Trustee shall
        not
        be answerable for other than its negligence or willful misconduct in the
        performance of such act.

       

      (i)    The
        Indenture Trustee shall not be required to give any bond or surety in respect
        of
        the execution of the trust created hereby or the powers granted
        hereunder.

       

      Section
        10.3.    Indenture
        Trustee’s Disclaimer

       

      The
        Indenture Trustee assumes no responsibility for the correctness of the recitals
        contained herein and in the Investor Notes (other than the certificate of
        authentication on the Investor Notes). Except as set forth in Section
        10.11,
        the
        Indenture Trustee makes no representations as to the validity or sufficiency
        of
        the Indenture or of the Investor Notes (other than the certificate of
        authentication on the Investor Notes) or of any of the Issuer Assets. The
        Indenture Trustee shall not be accountable for the use or application by
        the
        Issuer of any of the Investor Notes or of the proceeds of such Investor Notes,
        or for the use or application of any funds paid to the Issuer in respect
        of the
        Issuer Assets.

       

      Section
        10.4.    -Indenture
        Trustee May Own Investor Notes

       

      The
        Indenture Trustee in its individual or any other capacity may become the
        owner
        or pledgee of Investor Notes with the same rights as it would have if it
        were
        not the Indenture Trustee.

       

      Section
        10.5.    Notice
        of Defaults

       

      If
        a
        Default or an Event of Default or a Potential Amortization Event or an
        Amortization Event occurs and is continuing and if it is either actually
        known
        or written notice of the existence thereof has been delivered to a Responsible
        Officer of the Indenture Trustee, the Indenture Trustee shall mail to each
        Investor Noteholder notice thereof within 45 days after such knowledge or
        notice
        occurs. Except in the case of a Default in accordance with the provisions
        of
        Section 313(c) of the TIA in payment of principal of or interest on any Investor
        Note (including payments pursuant to the mandatory redemption provisions
        of such
        Investor Note), the Indenture Trustee may withhold the notice if and so long
        as
        a committee of its Responsible Officers in good faith determines that
        withholding the notice is in the interest of the Investor
        Noteholders.

       

      Section
        10.6.    Compensation

       

      The
        Issuer shall cause the Administrator pursuant to the Administration Agreement
        to
        pay to the Indenture Trustee from time to time reasonable compensation for
        its
        services. The Indenture Trustee’s compensation shall not be limited by any law
        on compensation of a trustee of an express trust. The Issuer shall cause
        the
        Administrator pursuant to the Administration Agreement to reimburse the
        Indenture Trustee for all reasonable out-of-pocket expenses incurred or made
        by
        it, including costs of collection, in addition to the compensation for its
        services. Such expenses shall include the reasonable compensation and expenses,
        disbursements and advances of the Indenture Trustee’s agents, counsel,
        accountants and experts. The Issuer shall cause the Administrator pursuant
        to
        the Administration Agreement to indemnify the Indenture Trustee against any
        and
        all loss, liability or expense (including the reasonable fees of counsel)
        incurred by it in connection with the administration of this trust and the
        performance of its duties hereunder. The Indenture Trustee shall notify the
        Issuer and the Administrator promptly of any claim for which it may seek
        indemnity; provided, however, a failure by the Indenture Trustee to promptly
        notify the Issuer and the Administrator of a claim for which it may seek
        indemnity shall not relieve the Administrator from its obligation to indemnify
        the Indenture Trustee.

       

       

      
        
          
          

        

        
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      The
        Administrator’s payment obligations to the Indenture Trustee pursuant to this
Section
        10.06
        shall
        survive the resignation or termination of the Indenture Trustee and the
        discharge of the Indenture. When the Indenture Trustee incurs expenses after
        the
        occurrence of a Default specified in Section
        8.1(f)
        with
        respect to the Issuer, the expenses are intended to constitute expenses of
        administration under the Bankruptcy Code or any other applicable federal
        or
        state bankruptcy, insolvency or similar law.

       

      Section
        10.7.    Eligibility
        Requirements for Indenture Trustee

       

       

      The
        Indenture Trustee hereunder shall at all times be a corporation organized
        and
        doing business under the laws of the United States or any state thereof
        authorized under such laws to exercise corporate trust powers, having a
        long-term unsecured debt rating of at least “Baa3” by Moody’s and “BBB-“ by
        Standard & Poor’s having, in the case of an entity that is subject to
        risk-based capital adequacy requirements, risk-based capital of at least
        $50,000,000 or, in the case of an entity that is not subject to risk-based
        capital adequacy requirements, having a combined capital and surplus of at
        least
        $50,000,000 and subject to supervision or examination by federal or state
        authority, and shall satisfy the requirements for a trustee set forth in
        paragraph (a)(4)(i) of Rule 3a-7 under the Investment Company Act. If such
        corporation publishes reports of condition at least annually, pursuant to
        law or
        to the requirements of the aforesaid supervising or examining authority,
        then
        for the purpose of this
        Section 10.7,
        the
        risk-based capital or the combined capital and surplus of such corporation,
        as
        the case may be, shall be deemed to be its risk-based capital or combined
        capital and surplus as set forth in the most recent report of condition so
        published. 

       

      If
        the
        Indenture is qualified under the TIA, the Indenture Trustee shall at all
        times
        satisfy the requirements of TIA §310(a) and the Indenture Trustee shall comply
        with TIA §310(b), including the optional provision permitted by the second
        sentence of TIA §310(b)(9); provided
        that
        there shall be excluded from the operation of TIA §310(b)(1) any indenture or
        indentures under which other securities of the Issuer are outstanding if
        the
        requirements for such exclusion set forth in the TIA §310(b)(1) are
        met.

       

      If
        at any
        time the Indenture Trustee ceases to be eligible in accordance with the
        provisions of this Section
        10.7,
        the
        Indenture Trustee shall resign immediately in the manner and with the effect
        specified in Section
        10.8.

       

      Section
        10.8.    Resignation
        or Removal of Indenture Trustee

       

      (a)    The
        Indenture Trustee may give notice of its intent to resign at any time by
        so
        notifying the Issuer. The Holders of a Majority in Interest of each Series
        of
        Outstanding Investor Notes may remove the Indenture Trustee by so notifying
        the
        Indenture Trustee and may appoint a successor Indenture Trustee. The Issuer
        shall remove the Indenture Trustee if:

       

       

      
        
          
          

        

        
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      (i)    the
        Indenture Trustee fails to comply with Section
        10.7;

       

      (ii)    the
        Indenture Trustee is adjudged bankrupt or insolvent;

       

      (iii)    a
        receiver or other public officer takes charge of the Indenture Trustee or
        its
        property; or

       

      (iv)    the
        Indenture Trustee otherwise becomes incapable of acting.

       

      (b)    If
        the
        Indenture Trustee gives notice of its intent to resign or is removed or if
        a
        vacancy exists in the office of the Indenture Trustee for any reason (the
        Indenture Trustee in such event being referred to herein as the retiring
        Indenture Trustee), the Issuer shall promptly appoint a successor Indenture
        Trustee.

       

      (c)    A
        successor Indenture Trustee shall deliver a written acceptance of its
        appointment to the retiring Indenture Trustee and to the Issuer and thereupon
        the resignation or removal of the Indenture Trustee shall become effective,
        and
        the successor Indenture Trustee, without any further act, deed or conveyance
        shall have all the rights, powers and duties of the Indenture Trustee under
        the
        Indenture. The successor Indenture Trustee shall mail a notice of its succession
        to Noteholders. The retiring Indenture Trustee shall promptly transfer all
        property held by it as the Indenture Trustee to the successor Indenture
        Trustee.

       

      (d)    If
        a
        successor Indenture Trustee does not take office within 60 days after the
        retiring Indenture Trustee gives notice of its intent to resign or is removed,
        the retiring Indenture Trustee, the Issuer or the Holders of a Majority in
        Interest of each Series of Outstanding Investor Notes may petition any court
        of
        competent jurisdiction for the appointment of a successor Indenture
        Trustee.

       

      (e)    If
        the
        Indenture Trustee fails to comply with Section
        10.7,
        any
        Investor Noteholder may petition any court of competent jurisdiction for
        the
        removal of the Indenture Trustee and the appointment of a successor Indenture
        Trustee.

       

      (f)    Any
        resignation or removal of the Indenture Trustee and appointment of a successor
        Indenture Trustee pursuant to any of the provisions of this Section shall
        not
        become effective until acceptance of appointment by the successor Indenture
        Trustee pursuant to Section
        10.8(c)
        and
        payment of all fees and expenses owed to the outgoing Indenture
        Trustee.

       

      (g)    Notwithstanding
        the resignation or removal of the Indenture Trustee pursuant to this Section,
        the Issuer’s and the Administrator’s obligations under Section
        10.6
        shall
        continue for the benefit of the retiring Indenture Trustee. The Indenture
        Trustee shall not be liable for the acts or omissions of any successor Indenture
        Trustee.

       

      Section
        10.9.    Successor
        Indenture Trustee by Merger.

       

      If
        the
        Indenture Trustee consolidates with, merges or converts into, or transfers
        all
        or substantially all its corporate trust business or assets to, another
        corporation or banking association, the resulting, surviving or transferee
        corporation without any further act shall be the successor Indenture Trustee.
        The Indenture Trustee shall provide the Issuer and the Rating Agencies written
        notice of any such transaction.

       

       

      
        
          
          

        

        
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      In
        case
        at the time such successor or successors by merger, conversion or consolidation
        to the Indenture Trustee shall succeed to the trusts created by the Indenture,
        any of the Investor Notes shall have been authenticated but not delivered,
        any
        such successor to the Indenture Trustee may adopt the certificate of
        authentication of any predecessor Indenture Trustee, and deliver such Investor
        Notes so authenticated; and in case at that time any of the Investor Notes
        shall
        not have been authenticated, any successor Indenture Trustee may authenticate
        such Investor Notes either in the name of any predecessor Indenture Trustee
        hereunder or in the name of the successor Indenture Trustee; and in all such
        cases such certificate of authentication shall have the same full force as
        is
        provided anywhere in the Investor Notes or in the Indenture with respect
        to the
        certificate of authentication of the Indenture Trustee.

       

      Section
        10.10.    Appointment
        of Co-Trustee or Separate Trustee

       

      (a)    Notwithstanding
        any other provisions of this Base Indenture or any Indenture Supplement,
        at any
        time, for the purpose of meeting any legal requirements of any jurisdiction
        in
        which any part of the Collateral may at the time be located, the Indenture
        Trustee shall have the power and may execute and deliver all instruments
        to
        appoint one or more persons to act as a co-trustee or co-trustees, or separate
        trustee or separate trustees, of all or any part of the Collateral, and to
        vest
        in such Person or Persons, in such capacity and for the benefit of the Investor
        Noteholders, such title to the Collateral, or any part thereof, and, subject
        to
        the other provisions of this Section
        10.10,
        such
        powers, duties, obligations, rights and trusts as the Indenture Trustee may
        consider necessary or desirable. No co-trustee or separate trustee hereunder
        shall be required to meet the terms of eligibility as a successor Indenture
        Trustee under Section
        10.7
        and no
        notice to Investor Noteholders of the appointment of any co-trustee or separate
        trustee shall be required under Section
        10.8.
        No
        co-trustee shall be appointed without the consent of the Issuer unless such
        appointment is required as a matter of state law or to enable the Indenture
        Trustee to perform its functions hereunder.

       

      (b)    Every
        separate trustee and co-trustee shall, to the extent permitted by law, be
        appointed and act subject to the following provisions and
        conditions:

       

      (i)    The
        Investor Notes of each Series shall be authenticated and delivered solely
        by the
        Indenture Trustee or an authenticating agent appointed by the Indenture
        Trustee;

       

      (ii)    All
        rights, powers, duties and obligations conferred or imposed upon the Indenture
        Trustee shall be conferred or imposed upon and exercised or performed by
        the
        Indenture Trustee and such separate trustee or co-trustee jointly (it being
        understood that such separate trustee or co-trustee is not authorized to
        act
        separately without the Indenture Trustee joining in such act), except to
        the
        extent that under any law of any jurisdiction in which any particular act
        or
        acts are to be performed, the Indenture Trustee shall be incompetent or
        unqualified to perform, such act or acts, in which event such rights, powers,
        duties and obligations (including the holding of title to the Issuer Assets
        or
        any portion thereof in any such jurisdiction) shall be exercised and performed
        singly by such separate trustee or co-trustee, but solely at the direction
        of
        the Indenture Trustee;

       

      (iii)    No
        trustee hereunder shall be personally liable by reason of any act or omission
        of
        any other trustee hereunder;

       

      (iv)    The
        Indenture Trustee may at any time accept the resignation of or remove any
        separate trustee or co-trustee; and

       

       

      
        
          
          

        

        
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      (v)    The
        Indenture Trustee shall remain primarily liable for the actions of any
        co-trustee.

       

      (c)    Any
        notice, request or other writing given to the Indenture Trustee shall be
        deemed
        to have been given to each of the then separate trustees and co-trustees,
        as
        effectively as if given to each of them. Every instrument appointing any
        separate trustee or co-trustee shall refer to this Base Indenture and the
        conditions of this Article
        9.
        Each
        separate trustee and co-trustee, upon its acceptance of the trusts conferred,
        shall be vested with the estates or property specified in its instrument
        of
        appointment, either jointly with the Indenture Trustee or separately, as
        may be
        provided therein, subject to all the provisions of this Base Indenture and
        any
        Indenture Supplement, specifically including every provision of this Base
        Indenture or any Indenture Supplement relating to the conduct of, affecting
        the
        liability of, or affording protection to, the Indenture Trustee. Every such
        instrument shall be filed with the Indenture Trustee and a copy thereof given
        to
        the Issuer.

       

      (d)    Any
        separate trustee or co-trustee may at any time constitute the Indenture Trustee,
        its agent or attorney-in-fact with full power and authority, to the extent
        not
        prohibited by law, to do any lawful act under or in respect to this Base
        Indenture or any Indenture Supplement on its behalf and in its name. If any
        separate trustee or co-trustee shall die, become incapable of acting, resign
        or
        be removed, all of its estates, properties, rights, remedies and trusts shall
        vest in and be exercised by the Indenture Trustee, to the extent permitted
        by
        law, without the appointment of a new or successor Indenture
        Trustee.

       

      (e)    In
        connection with the appointment of a co-trustee, the Indenture Trustee may,
        at
        any time, at the Indenture Trustee’s sole cost and expense, without notice to
        the Investor Noteholders, delegate its duties under this Base Indenture and
        any
        Indenture Supplement to any Person who agrees to conduct such duties in
        accordance with the terms hereof; provided,
        however,
        that no
        such delegation shall relieve the Indenture Trustee of its obligations and
        responsibilities hereunder with respect to any such delegated
        duties.

       

      Section
        10.11.    Representations
        and Warranties of Indenture Trustee

       

      The
        Indenture Trustee represents and warrants to the Issuer and the Investor
        Noteholders that:

       

      (i)    The
        Indenture Trustee is a national banking association organized, existing and
        in
        good standing under the laws of the United States of America;

       

      (ii)    The
        Indenture Trustee has full power, authority and right to execute, deliver
        and
        perform this Base Indenture and any Indenture Supplement issued concurrently
        with this Base Indenture and to authenticate the Investor Notes, and has
        taken
        all necessary action to authorize the execution, delivery and performance
        by it
        of this Base Indenture and any Indenture Supplement issued concurrently with
        this Base Indenture and to authenticate the Investor Notes;

       

      (iii)    This
        Base
        Indenture has been duly executed and delivered by the Indenture Trustee;
        and

       

      (iv)    The
        Indenture Trustee meets the requirements of eligibility as an Indenture Trustee
        hereunder set forth in Section 10.7.

       

       

       

      
        
          
          

        

        
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      Section
        10.12.    Preferential
        Collection of Claims Against the Issuer

       

       

      If
        the
        Indenture is qualified under the TIA, the Indenture Trustee shall comply
        with
        TIA §311(a), excluding any creditor relationship listed in TIA §311(b) and an
        Indenture Trustee who has resigned or been removed shall be subject to TIA
        §311(a) to the extent indicated therein.

       

      ARTICLE
        11

       

      DISCHARGE
        OF INDENTURE

       

      Section
        11.1.    Termination
        of the Issuer’s Obligations

       

      (a)    The
        Indenture shall cease to be of further effect (except that (i) the Issuer’s
        obligations under Section
        10.6,
        (ii)
        the Indenture Trustee’s and Paying Agent’s obligations under Section
        11.3
        and the
        Indenture Trustee’s and the Investor Noteholders’ obligations under Section
        13.16
        shall
        survive) when all Outstanding Investor Notes theretofore authenticated and
        issued have been delivered (other than destroyed, lost or stolen Investor
        Notes
        which have been replaced or paid) to the Indenture Trustee for cancellation
        and
        the Issuer has paid all sums payable hereunder.

       

      (b)    In
        addition, except as may be provided to the contrary in any Indenture Supplement,
        the Issuer may terminate all of its obligations under the Indenture
        if:

       

      (i)    The
        Issuer irrevocably deposits in trust with the Indenture Trustee or at the
        option
        of the Indenture Trustee, with a trustee reasonably satisfactory to the
        Indenture Trustee and the Issuer under the terms of an irrevocable trust
        agreement in form and substance satisfactory to the Indenture Trustee, money
        or
        U.S. Government Obligations in an amount sufficient, in the opinion of a
        nationally recognized firm of independent certified public accountants expressed
        in a written certification thereof delivered to the Indenture Trustee, to
        pay,
        when due, principal and interest on the Investor Notes to maturity or
        redemption, as the case may be, and to pay all other sums payable by it
        hereunder; provided,
        however,
        that
        (1) the trustee of the irrevocable trust shall have been irrevocably instructed
        to pay such money or the proceeds of such U.S. Government Obligations to
        the
        Indenture Trustee and (2) the trustee shall have been irrevocably instructed
        to
        apply such money or the proceeds of such U.S. Government Obligations to the
        payment of said principal and interest with respect to the Investor
        Notes;

       

      (ii)    The
        Issuer delivers to the Indenture Trustee an Officer’s Certificate stating that
        all conditions precedent to satisfaction and discharge of the Indenture have
        been complied with, and an Opinion of Counsel to the same effect;
        and

       

      (iii)    the
        Rating Agency Condition is satisfied with respect to each Series of Outstanding
        Investor Notes.

       

      Then,
        the
        Indenture shall cease to be of further effect (except as provided in this
        Section
        11.1),
        and
        the Indenture Trustee, on demand of the Issuer, shall execute proper instruments
        acknowledging confirmation of and discharge under the Indenture.

       

       

      
        
          
          

        

        
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      (c)    After
        such irrevocable deposit made pursuant to Section
        11.1(b)
        and
        satisfaction of the other conditions set forth herein, the Indenture Trustee
        upon request shall acknowledge in writing the discharge of the Issuer’s
        obligations under the Indenture except for those surviving obligations specified
        above.

       

      In
        order
        to have money available on a payment date to pay principal or interest on
        the
        Investor Notes, the U.S. Government Obligations shall be payable as to principal
        or interest at least one Business Day before such payment date in such amounts
        as will provide the necessary money. U.S. Government Obligations shall not
        be
        callable at the issuer’s option.

       

      Section
        11.2.    Application
        of Trust Money

       

      The
        Indenture Trustee or a trustee satisfactory to the Indenture Trustee and
        the
        Issuer shall hold in trust money or U.S. Government Obligations deposited
        with
        it pursuant to Section
        11.1.
        The
        Indenture Trustee shall apply the deposited money and the money from U.S.
        Government Obligations through the Paying Agent in accordance with the Indenture
        to the payment of principal and interest on the Investor Notes.

       

      The
        provisions of this Section
        11.2
        shall
        survive the expiration or earlier termination of the Indenture.

       

      Section
        11.3.    Repayment
        to the Issuer

       

      The
        Indenture Trustee and the Paying Agent shall promptly pay to the Issuer upon
        written request any excess money or, pursuant to Section
        2.4,
        return
        any Investor Notes held by them at any time.

       

      The
        provisions of this Section
        11.3
        shall
        survive the expiration or earlier termination of the Indenture.

       

      ARTICLE
        12.

       

      AMENDMENTS

       

      Section
        12.1.    Without
        Consent of the Investor Noteholders

       

      Without
        the consent of any Investor Noteholder, the Issuer and the Indenture Trustee,
        at
        any time and from time to time, may enter into one or more Supplements, in
        form
        satisfactory to the Indenture Trustee, for any of the following purposes,
        provided that the Rating Agency Condition is met:

       

      (a)    to
        create
        a new Series of Investor Notes;

       

      (b)    to
        add to
        the covenants of the Issuer for the benefit of any Investor Noteholders (and
        if
        such covenants are to be for the benefit of less than all Series of Investor
        Notes, stating that such covenants are expressly being included solely for
        the
        benefit of such Series) or to surrender any right or power herein conferred
        upon
        the Issuer (provided,
        however,
        that
        the Issuer will not pursuant to this Section
        12.1(b)
        surrender any right or power it has under the Transaction
        Documents);

       

       

      
        
          
          

        

        
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      (c)    to
        mortgage, pledge, convey, assign and transfer to the Indenture Trustee any
        property or assets as security for the Investor Notes and to specify the
        terms
        and conditions upon which such property or assets are to be held and dealt
        with
        by the Indenture Trustee and to set forth such other provisions in respect
        thereof as may be required by the Indenture or as may, consistent with the
        provisions of the Indenture, be deemed appropriate by the Issuer and the
        Indenture Trustee, or to correct or amplify the description of any such property
        or assets at any time so mortgaged, pledged, conveyed and transferred to
        the
        Indenture Trustee on behalf of the Investor Noteholders;

       

      (d)    to
        cure
        any ambiguity, defect, or inconsistency or to correct or supplement any
        provision contained herein or in any Indenture Supplement or in any Investor
        Notes issued hereunder;

       

      (e)    to
        evidence and provide for the acceptance of appointment hereunder by a successor
        Indenture Trustee with respect to the Investor Notes of one or more Series
        and
        to add to or change any of the provisions of the Indenture as shall be necessary
        to provide for or facilitate the administration of the trusts hereunder by
        more
        than one trustee; 

       

      (f)    to
        correct or supplement any provision herein or in any Indenture Supplement
        which
        may be inconsistent with any other provision herein or therein or to make
        any
        other provisions with respect to matters or questions arising under this
        Base
        Indenture or in any Indenture Supplement; or

       

      (g)    if
        the
        Indenture is required to be qualified under the TIA, to modify, eliminate
        or add
        to the provisions of the Indenture to such extent as shall be necessary to
        effect the qualification of the Indenture under the TIA or under any similar
        federal statute hereafter enacted and to add to the Indenture such other
        provisions as may be expressly required by the TIA;

       

      provided,
        however,
        that,
        as evidenced by an Opinion of Counsel delivered to the Indenture Trustee
        (at the
        Issuer’s expense), such action shall not adversely affect in any material
        respect the interests of any Investor Noteholder. Upon the request of the
        Issuer, the Indenture Trustee shall join with the Issuer in the execution
        of any
        Supplement authorized or permitted by the terms of the Indenture and shall
        make
        any further appropriate agreements and stipulations which may be therein
        contained, but the Indenture Trustee shall not be obligated to enter into
        such
        Supplement which affects its own rights, duties or immunities under the
        Indenture or otherwise.

       

      Section
        12.2.    With
        Consent of the Investor Noteholders

       

       

      Except
        as
        provided in Section
        12.1,
        the
        provisions of this Base Indenture and any Indenture Supplement (unless otherwise
        provided in such Indenture Supplement) may from time to time be amended,
        modified or waived, if such amendment, modification or waiver is in writing
        and
        consented to in writing by the Issuer, the Indenture Trustee and the Holders
        of
        a Majority in Interest of each Series of Outstanding Investor Notes;
provided
        that, if
        such amendment, modification or waiver of or to this Base Indenture or the
        Indenture Supplement with respect to a Series of Investor Notes does not
        affect
        the Investor Noteholders of a particular Series of Investor Notes (as
        substantiated by an Opinion of Counsel to such effect), then the consent
        of the
        Investor Noteholders of such Series shall not be required to such amendment,
        modification or waiver; provided further that the Rating Agency Condition
        is
        satisfied with respect to any such amendment, modification or waiver.
        Notwithstanding the foregoing:

       

       

      
        
          
          

        

        
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      (i)    any
        modification of this Section
        12.2,
        any
        requirement hereunder that any particular action be taken by Investor
        Noteholders holding the relevant percentage in principal amount of the Investor
        Notes or any change in the definition of the terms “Adjusted Aggregate Unit
        Balance” or “Asset Deficiency”, “Invested Amount”, “Invested Percentage” or any
        defined term used for the purpose of any such definitions shall require the
        consent of each affected Investor Noteholder; and

       

      (ii)    any
        amendment, waiver or other modification that would (a) extend the due date
        for,
        or reduce the amount of any scheduled repayment or prepayment of principal
        of or
        interest on any Investor Note (or reduce the principal amount of or rate
        of
        interest on any Investor Note) shall require the consent of each affected
        Investor Noteholder; (b) approve the assignment or transfer by the Issuer
        of any
        of its rights or obligations hereunder or under any other Transaction Document
        to which it is a party except pursuant to the express terms hereof or thereof
        shall require the consent of each Investor Noteholder; (c) release any obligor
        under any Transaction Document to which it is a party except pursuant to
        the
        express terms of such Transaction Document shall require the consent of each
        Investor Noteholder; (d) affect adversely the interests, rights or obligations
        of any Investor Noteholder individually in comparison to any other Investor
        Noteholder shall require the consent of such Investor Noteholder; or (e)
        amend
        or otherwise modify any Amortization Event shall require the consent of each
        affected Investor Noteholder.

       

      Section
        12.3.    Supplements

       

      Each
        amendment or other modification to the Indenture or the Investor Notes shall
        be
        set forth in a Supplement. The initial effectiveness of each Supplement shall
        be
        subject to the satisfaction of the Rating Agency Condition. In addition to
        the
        manner provided in Sections 12.1
        and
12.2,
        each
        Indenture Supplement may be amended as provided in such Indenture
        Supplement.

       

      Section
        12.4.    Revocation
        and Effect of Consents

       

      Until
        an
        amendment or waiver becomes effective, a consent to it by an Investor Noteholder
        of an Investor Note is a continuing consent by the Investor Noteholder and
        every
        subsequent Investor Noteholder of an Investor Note or portion of an Investor
        Note that evidences the same debt as the consenting Investor Noteholder’s
        Investor Note, even if notation of the consent is not made on any Investor
        Note.
        However, any such Investor Noteholder or subsequent Investor Noteholder may
        revoke the consent as to his Investor Note or portion of an Investor Note
        if the
        Indenture Trustee receives written notice of revocation before the date the
        amendment or waiver becomes effective. An amendment or waiver becomes effective
        in accordance with its terms and thereafter binds every Investor Noteholder.
        The
        Issuer may fix a record date for determining which Investor Noteholders must
        consent to such amendment or waiver.

       

      Section
        12.5.    Notation
        on or Exchange of Investor Notes

       

      The
        Indenture Trustee may place an appropriate notation about an amendment or
        waiver
        on any Investor Note thereafter authenticated. The Issuer in exchange for
        all
        Investor Notes may issue and the Indenture Trustee shall authenticate new
        Investor Notes that reflect the amendment or waiver. Failure to make the
        appropriate notation or issue a new Investor Note shall not affect the validity
        and effect of-such amendment or waiver.

       

       

      
        
          
          

        

        
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      Section
        12.6.    The
        Indenture Trustee to Sign Amendments, etc

       

      The
        Indenture Trustee shall sign any Supplement authorized pursuant to this
Article
        12
        if the
        Supplement does not adversely affect the rights, duties, liabilities or
        immunities of the Indenture Trustee. If it does, the Indenture Trustee may,
        but
        need not, sign it. In signing such Supplement, the Indenture Trustee shall
        be
        entitled to receive, if requested, an indemnity reasonably satisfactory to
        it
        and to receive and, subject to Section
        10.1,
        shall
        be fully protected in relying upon, an Officer’s Certificate and an Opinion of
        Counsel as conclusive evidence that such Supplement is authorized or permitted
        by the Indenture and that it will be valid and binding upon the Issuer in
        accordance with its terms

       

      Section
        12.7.    Conformity
        with Trust Indenture Act

       

      If
        the
        Indenture is qualified under the TIA, every amendment of the Indenture and
        every
        Supplement executed pursuant to this Article
        12
        shall
        comply in all respects with the TIA.

       

      ARTICLE
        13.

       

      MISCELLANEOUS

       

      Section
        13.1.    Compliance
        Certificates and Opinions

       

      (a)    Upon
        any
        application or request by the Issuer to the Indenture Trustee to take any
        action
        under any provision of the Indenture, the Issuer shall furnish to the Indenture
        Trustee (i) an Officer’s Certificate stating that all conditions precedent, if
        any, provided for in the Indenture relating to the proposed action have been
        complied with, (ii) an Opinion of Counsel stating that in the opinion of
        such
        counsel all such conditions precedent, if any, have been complied with, and
        (iii) if the Indenture is qualified under the TIA and the TIA so requires,
        an
        Independent Certificate from a firm of certified public accountants or other
        experts meeting the applicable requirements of this Section
        13.1,
        except
        that, in the case of any such application or request as to which the furnishing
        of such documents is specifically required by any provision of the Indenture,
        no
        additional certificate or opinion need be furnished.

       

      Every
        certificate or opinion with respect to compliance with a condition or covenant
        provided for in the Indenture shall include:

       

      (i)    a
        statement that each signatory of such certificate or opinion has read or
        has
        caused to be read such covenant or condition and the definitions herein relating
        thereto;

       

      (ii)    a
        brief
        statement as to the nature and scope of the examination or investigation
        upon
        which the statements or opinions contained in such certificate or opinion
        are
        based;

       

      (iii)    a
        statement that, in the opinion of each such signatory, such signatory has
        made
        such examination or investigation as is necessary to enable such signatory
        to
        express an informed opinion as to whether such covenant or condition has
        been
        complied with; and

       

       

      
        
          
          

        

        
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      (iv)    a
        statement as to whether, in the opinion of each such signatory such condition
        or
        covenant has been complied with.

       

      (v)    If
        the
        Indenture is qualified under the TIA and the TIA so requires, prior to the
        deposit of any property or securities with the Indenture Trustee that is
        to be
        made the basis for the release of any property or securities subject to the
        Lien
        of the Indenture, the Issuer shall, in addition to any obligation imposed
        in
Section
        13.1(a)
        or
        elsewhere in the Indenture, furnish to the Indenture Trustee an Officer’s
        Certificate certifying or stating the opinion of each person signing such
        certificate as to the fair value (within 90 days of such deposit) to the
        Issuer
        of the property or securities to be so deposited.

       

      (vi)    Whenever
        the Issuer is required to furnish to the Indenture Trustee an Officer’s
        Certificate certifying or stating the opinion of any signer thereof as to
        the
        matters described in clause
        (i),
        the
        Issuer shall also deliver to the Indenture Trustee an Independent Certificate
        as
        to the same matters, if the fair value to the Issuer of the securities to
        be so
        deposited and of all other such securities made the basis of any such withdrawal
        or release since the commencement of the then-current fiscal year of the
        Issuer,
        as set forth in the certificates delivered pursuant to clause
        (i)
        and this
clause
        (ii),
        is 10%
        or more of the Aggregate Invested Amount, but such a certificate need not
        be
        furnished with respect to any securities so deposited, if the fair value
        thereof
        to the Issuer as set forth in the related Officer’s Certificate is less than
        $25,000 or less than one percent of the Aggregate Invested Amount.

       

      (vii)    If
        the
        Indenture is qualified under the TIA and the TIA so requires, whenever any
        property or securities are to be released from the Lien of the Indenture,
        the
        Issuer shall also furnish to the Indenture Trustee an Officer’s Certificate
        certifying or stating the opinion of each person signing such certificate
        as to
        the fair value (within 90 days of such release) of the property or securities
        proposed to be released and stating that in the opinion of such person the
        proposed release will not impair the security under the Indenture in
        contravention of the provisions hereof.

       

      (viii)    Whenever
        the Issuer is required to furnish to the Indenture Trustee an Officer’s
        Certificate certifying or stating the opinion of any signer thereof as to
        the
        matters described in clause
        (iii),
        the
        Issuer shall also furnish to the Indenture Trustee an Independent Certificate
        as
        to the same matters if the fair value of the property or securities and of
        all
        other property, or securities released from the Lien of the Indenture since
        the
        commencement of the then current calendar year, as set forth in the certificates
        required by clause
        (iii)
        and this
clause
        (iv),
        equals
        10% or more of the Aggregate Invested Amount, but such certificate need not
        be
        furnished in the case of any release of property or securities if the fair
        value
        thereof as set forth in the related Officer’s Certificate is less than $25,000
        or less than one percent of the then Aggregate Invested Amount.

       

      (ix)    Notwithstanding
        any provision of this Section
        13.1,
        the
        Issuer may (A) collect, liquidate, sell or otherwise dispose of the Issuer
        Assets as and to the extent permitted or required by the Transaction Documents
        and (B) make cash payments out of the Issuer Accounts as and to the extent
        permitted or required by the Transaction Documents.

       

       

      
        
          
          

        

        
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      Section
        13.2.    Forms
        of Documents Delivered to Indenture Trustee

       

      In
        any
        case where several matters are required to be certified by, or covered by
        an
        opinion of, any specified Person, it is not necessary that all such matters
        be
        certified by, or covered by the opinion of, only one such Person, or that
        they
        be so certified or covered by only one document, but one such Person may
        certify
        or give an opinion with respect to some matters and one or more other such
        Persons as to other matters, and any such Person my certify or give an opinion
        as to such matters in one or several documents.

       

      Any
        certificate or opinion of an Authorized Officer of the Issuer may be based,
        insofar as it relates to legal matters, upon a certificate to legal matters,
        upon a certificate or opinion of, or representations by, counsel, unless
        such
        officer knows, or in the exercise of reasonable care should know, that the
        certificate or opinion or representations with respect to the matters upon
        which
        his or her certificate or opinion is based are erroneous. Any such certificate
        of an Authorized Officer or Opinion of Counsel may be based, insofar as it
        relates to factual matters, upon a certificate or opinion of, or representations
        by, an officer or officers of the Servicer, Holdings or the Issuer, stating
        that
        the information with respect to such factual matters is in the possession
        of the
        Servicer, Holdings or the Issuer, unless such counsel knows, or in the exercise
        of reasonable care should know, that the certificate or opinion or
        representations with respect to such matters are erroneous.

       

      Where
        any
        Person is required to make, give or execute two or more applications, requests,
        consents, certificates, statements, opinions or other instruments under the
        Indenture, they may, but need not, be consolidated and form one
        instrument.

       

      Whenever
        in the Indenture, in connection with any application, certificate or report
        to
        the Indenture Trustee, it is provided that the Issuer shall deliver any document
        (x) as a condition of the granting of such application, or (y) as evidence
        of
        the Issuer’s compliance with any term hereof, it is intended that the truth and
        accuracy, at the time of the granting of such application or at the effective
        date of such certificate or report (as the case may be), of the facts and
        opinions stated in such document shall in each case be conditions precedent
        to
        the right of the Issuer to have such application granted or to the sufficiency
        of such certificate or report. The foregoing shall not, however, be construed
        to
        affect the Indenture Trustee’s right to rely upon the truth and accuracy of any
        statement or opinion contained in any such document as provided in Article
        10.

       

      Section
        13.3.    Actions
        of Noteholders

       

      (a)    Any
        request, demand, authoriza-tion, direc-tion, notice, consent, waiver or other
        action pro-vided by the Indenture to be given or taken by the Investor
        Note--holders may be embodied in and evidenced by one or more instru-ments
        of
        substantially similar tenor signed by such Investor Noteholders in person
        or by
        an agent duly ap-pointed in writing; and except as herein otherwise ex-pressly
        provid-ed, such action shall become effective when such instru-ment or
        instruments are delivered to the Indenture Trustee and, when required, to
        the
        Issuer. Proof of execution of any such instrument or of a writing appointing
        any
        such agent shall be sufficient for any purpose of the Indenture and conclusive
        in favor of the Indenture Trustee and the Issuer, if made in the manner provided
        in this Section
        13.3.

       

       

      
        
          
          

        

        
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      (b)    The
        fact
        and date of the execu-tion by any Investor Note-holder of any such instrument
        or
        writ-ing may be proved in any reasonable manner which the Indenture Trustee
        deems sufficient.

       

      (c)    Any
        request, demand, authoriza-tion, direc-tion, notice, consent, waiver or other
        act by an Investor Note--holder shall bind every Holder of every Investor
        Note
        issued upon the registration of transfer there-of or in exchange therefor
        or in
        lieu thereof, in respect of anything done, or omitted to be done, by the
        Indenture Trustee or the Issuer in reliance thereon, regardless of whether
        notation of such action is made upon such Investor Note-.

       

      (d)    The
        Indenture Trustee may require such addi-tional proof of any matter referred
        to
        in this Sec-tion
        13.3
        as it
        shall deem necessary.

       

      Section
        13.4.    Notices

       

      (a)    Any
        notice or communication by the Issuer or the Indenture Trustee to the other
        shall be in writing and delivered in person or mailed by first-class mail
        (registered or certified, return receipt requested), telex, telecopier or
        overnight air courier guaranteeing next day delivery, to the other’s
        address:

       

      If
        to the
        Issuer:

       

      Chesapeake
        Funding LLC 

      [c/o
        Global Securitization Services, LLC

      25
        West
        43rd
        Street,
        Suite 704

      New
        York,
        NY 10036] 

      Attention:
        President

      Telecopier
        No.: 

       

      with
        a
        copy to the Administrator:

       

      PHH
        Vehicle Management Services, LLC

      940
        Ridgebrook Road 

      Sparks,
        MD 21152

      Telecopier:
        (410) 771-[ ]

      Attention:
        General Counsel

       

      If
        to the
        Indenture Trustee:

       

      JPMorgan
        Chase Bank, National Association, 

      4
        New
        York Plaza, 6th
        Floor

      New
        York,
        New York 10004 

      Attn:
        Worldwide Securities Services/Structured Finance Services - Chesapeake Funding
        LLC

      Phone:
        (212) 623-5600 

      Fax:
        (212) 623-5930

       

      The
        Issuer or the Indenture Trustee by notice to the other may designate additional
        or different addresses for subsequent notices or communications; provided,
        however,
        the
        Issuer may not at any time designate more than a total of three (3) addresses
        to
        which notices must be sent in order to be effective.

       

       

       

      
        
          
          

        

        
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      Any
        notice (i) given in person shall be deemed delivered on the date of delivery
        of
        such notice, (ii) given by first class mail shall be deemed given five (5)
        days
        after the date that such notice is mailed, (iii) delivered by telex or
        telecopier shall be deemed given on the date of delivery of such notice,
        and
        (iv) delivered by overnight air courier shall be deemed delivered one Business
        Day after the date that such notice is delivered to such overnight
        courier.

       

      Notwithstanding
        any provisions of the Indenture to the contrary, the Indenture Trustee shall
        have no liability based upon or arising from the failure to receive any notice
        required by or relating to the Indenture or the Investor Notes.

       

      If
        the
        Issuer mails a notice or communication to Investor Noteholders, it shall
        mail a
        copy to the Indenture Trustee at the same time.

       

      Notices
        required to be given to the Rating Agencies by the Issuer or the Indenture
        Trustee shall be in writing, personally delivered or mailed certified mail,
        return receipt requested to (i) in the case of Moody’s, at the following
        address: Moody’s Investors Service, 99 Church Street, 4th
        Floor,
        New York, New York 10007, Attention ABS Monitoring Dept. and (ii) in the
        case of
        Standard & Poor’s, at the following address: Standard & Poor’s Ratings
        Service, 55 Water Street (41st Floor), New York, New York 10041-0003, Attention:
        Asset Backed Surveillance Group. 

       

      (b)    Where
        the
        Indenture provides for notice to Investor Noteholders of any event, such
        notice
        shall be sufficiently given (unless otherwise herein expressly provided)
        if sent
        in writing and mailed, first-class postage prepaid, to each Investor Noteholder
        affected by such event, at its address as it appears in the Note Register,
        not
        later than the latest date, and not earlier than the earliest date, prescribed
        (if any) for the giving of such notice. In any case where notice to Investor
        Noteholder is given by mail, neither the failure to mail such notice, nor
        any
        defect in any notice so mailed, to any particular Investor Noteholder shall
        affect the sufficiency of such notice with respect to other Investor
        Noteholders, and any notice which is mailed in the manner herein provided
        shall
        be conclusively presumed to have been duly given. Where the Indenture provides
        for notice in any manner, such notice may be waived in writing by any Person
        entitled to receive such notice, either before or after the event, and such
        waiver shall be the equivalent of such notice. Waivers of notice by Investor
        Noteholders shall be filed with the Indenture Trustee, but such filing shall
        not
        be a condition precedent to the validity of any action taken in reliance
        upon
        such waiver.

       

      In
        the
        case by reason of the suspension of regular mail service or by reason of
        any
        other cause it shall be impracticable to give such notice by mail, then such
        notification as shall be made that is satisfactory to the Indenture Trustee
        shall constitute a sufficient notification for every purpose
        hereunder.

       

      Section
        13.5.    Conflict
        with TIA

       

      If
        the
        Indenture is qualified under the TIA and any provision hereof limits, qualifies
        or conflicts with another provision hereof that is required to be included
        in
        the Indenture by any of the provisions of the TIA, such required provision
        shall
        control.

       

       

      
        
          
          

        

        
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      If
        the
        Indenture is qualified under the TIA, the provisions of TIA §§ 310 through 317
        that impose duties on any person (including the provisions automatically
        deemed
        included herein unless expressly excluded by the Indenture) are a part of
        and
        govern the Indenture, whether or not physically contained herein.

       

      Section
        13.6.    Rules
        by the Indenture Trustee

       

      The
        Indenture Trustee may make reasonable rules for action by or at a meeting
        of
        Investor Noteholders.

       

      Section
        13.7.    Duplicate
        Originals

       

      The
        parties may sign any number of copies of this Base Indenture. One signed
        copy is
        enough to prove this Base Indenture.

       

      Section
        13.8.    Benefits
        of Indenture

       

      Except
        as
        set forth in an Indenture Supplement, nothing in the Indenture or in the
        Investor Notes, expressed or implied, shall give to any Person, other than
        the
        parties hereto and their successors hereunder and the Holders, any benefit
        or
        any legal or equitable right, remedy or claim under the Indenture.

       

      Section
        13.9.    Payment
        on Business Day

       

      In
        any
        case where any Payment Date, redemption date or maturity date of any Investor
        Note shall not be a Business Day, then (notwithstanding any other provision
        of
        the Indenture) payment of interest or principal (and premium, if any), as
        the
        case may be, need not be made on such date but may be made on the next
        succeeding Business Day with the same force and effect as if made on the
        Payment
        Date, redemption date, or maturity date; provided,
        however.
        that no
        interest shall accrue for the period from and after such Payment Date,
        redemption date, or maturity date, as the case may be.

       

      Section
        13.10.    Governing
        Law

       

       

      THIS
        BASE INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
        WITH, THE LAW OF THE STATE OF NEW YORK.

       

      Section
        13.11.    Severability
        of Provisions

       

      If
        any
        one or more of the covenants, agreements, provisions or terms of the Indenture
        shall for any reason whatsoever be held invalid, then such covenants,
        agreements, provisions or terms shall be deemed severable from the remaining
        covenants, agreements, provisions or terms of the Indenture and shall in
        no way
        affect the validity of enforceability of the other provisions of the Indenture
        or of the Investor Notes or rights of the Investor Noteholders
        thereof.

       

       

      
        
          
          

        

        
          61

          
            

          

        

        
          
          

        

      

       

      Section
        13.12.    Counterparts

       

      This
        Base
        Indenture may be executed in two or more counterparts (and by different parties
        on separate counterparts), each of which shall be an original, but all of
        which
        together shall constitute one and the same instrument.

       

      Section
        13.13.    Successors

       

      All
        agreements of the Issuer in the Indenture and the Investor Notes shall bind
        its
        successor; provided,
        however,
        the
        Issuer may not assign its obligations or rights under the Indenture or any
        Transaction Document. All agreements of the Indenture Trustee in the Indenture
        shall bind its successor.

       

      Section
        13.14.    Table
        of Contents, Headings, etc.

       

      The
        Table
        of Contents, Cross-Reference Table, and headings of the Articles and Sections
        of
        this Base Indenture have been inserted for convenience of reference only,
        are
        not to be considered a part hereof, and shall in no way modify or restrict
        any
        of the terms or provisions hereof.

       

      Section
        13.15.    Recording
        of Indenture

       

      If
        the
        Indenture is subject to recording in any appropriate public recording offices,
        such recording is to be effected by the Issuer and at its expense accompanied
        by
        an Opinion of Counsel (which may be counsel to the Indenture Trustee or any
        other counsel reasonably acceptable to the Indenture Trustee) to the effect
        that
        such recording is necessary either for the protection of the Investor
        Noteholders or any other person secured hereunder or for the enforcement
        of any
        right or remedy granted to the Indenture Trustee under the Indenture or to
        satisfy any provision of the TIA (if the Indenture is qualified
        thereunder).

       

      Section
        13.16.    No
        Petition

       

      The
        Indenture Trustee, by entering into the Indenture, and each Investor Noteholder,
        by accepting an Investor Note, hereby covenant and agree that they will not
        at
        any time (i) institute against the Issuer or join in any institution against
        the
        Issuer of, any involuntary bankruptcy, reorganization, arrangement, insolvency
        or liquidation proceedings, or other proceedings under any United States
        Federal
        or state bankruptcy or similar law in connection with any obligations relating
        to the Investor Notes, this Base Indenture or any of the other Transaction
        Documents or (ii) institute against, or join any other Person in instituting
        against, the Origination Trust, Holdings, the Intermediary, any other Special
        Purpose Entity, or any general partner or single member of any Special Purpose
        Entity that is a partnership or limited liability company, respectively,
        any
        involuntary bankruptcy, reorganization, arrangement, insolvency or liquidation
        proceeding or other proceedings under any federal or state bankruptcy or
        similar
        law.

       

      Section
        13.17.    SUBIs

       

      The
        Indenture Trustee, by entering into the Indenture, and each Investor Noteholder,
        by accepting an Investor Note, represents, warrants and covenants that (a)
        each
        of the Lease SUBI and the Fleet Receivable SUBI is a separate series of the
        Origination Trust as provided in Section 3806(b)(2) of Chapter 38 of Title
        12 of
        the Delaware Code, 12 Del.C.
§
3801
        

       

       

      
        
          
          

        

        
          62

          
            

          

        

        
          
          

        

      

       

      et seq.,
        (b)(i)
        the debts, liabilities, obligations and expenses incurred, contracted for
        or
        otherwise existing with respect to the Lease SUBI, the Lease SUBI Portfolio
        or
        the Fleet Receivable SUBI shall be enforceable against the Lease SUBI Portfolio
        or the Fleet Receivable SUBI only, as applicable, and not against any other
        SUBI
        Portfolio (used in this Section as defined in the Origination Trust Agreement)
        or the UTI Portfolio and (ii) the debts, liabilities, obligations and expenses
        incurred, contracted for or otherwise existing with respect to any other
        SUBI
        (used in this Section as defined in the Origination Trust Agreement), any
        other
        SUBI Portfolio, the UTI or the UTI Portfolio shall be enforceable against
        such
        other SUBI Portfolio or the UTI Portfolio only, as applicable, and not against
        any other SUBI Assets, (c) except to the extent required by law, UTI Assets
        or
        SUBI Assets with respect to any SUBI (other than the Lease SUBI and the Fleet
        Receivable SUBI) shall not be subject to the claims, debts, liabilities,
        expenses or obligations arising from or with respect to the Lease SUBI or
        Fleet
        Receivable SUBI, respectively, in respect of such claim, (d)(i) no creditor
        or
        holder of a claim relating to the Lease SUBI, the Fleet Receivable SUBI or
        the
        Lease Receivable SUBI Portfolio shall be entitled to maintain any action
        against
        or recover any assets allocated to the UTI or the UTI Portfolio or any other
        SUBI or the assets allocated thereto, and (ii) no creditor or holder of a
        claim
        relating to the UTI, the UTI Portfolio or any SUBI other than the Lease SUBI
        or
        the Fleet Receivable SUBI or any SUBI Assets other than the Lease SUBI Portfolio
        or the Fleet Receivables shall be entitled to maintain any action against
        or
        recover any assets allocated to the Lease SUBI or the Fleet Receivable SUBI,
        and
        (e) any purchaser, assignee or pledgee of an interest in the Lease SUBI,
        the
        Lease SUBI Certificate, the Fleet Receivable SUBI, the Lease SUBI Certificate,
        the Fleet Receivable SUBI Certificate, any other SUBI, any other SUBI
        Certificate (used in this Section as defined in the Origination Trust
        Agreement), the UTI or the UTI Certificate must, prior to or contemporaneously
        with the grant of any such assignment, pledge or security interest, (i) give
        to
        the Origination Trust a non-petition covenant substantially similar to that
        set
        forth in Section 6.9 of the Origination Trust Agreement, and (ii) execute
        an
        agreement for the benefit of each holder, assignee or pledgee from time to
        time
        of the UTI or UTI Certificate and any other SUBI or SUBI Certificate to release
        all claims to the assets of the Origination Trust allocated to the UTI and
        each
        other SUBI Portfolio and in the event that such release is not given effect,
        to
        fully subordinate all claims it may be deemed to have against the assets
        of the
        Origination Trust allocated to the UTI Portfolio and each other SUBI
        Portfolio.

       

      Section
        13.18.    Election
        of Overconcentration Option. 

       

      Overconcentration
        Option [_] shall remain in effect until a different Overconcentration Option
        shall become effective upon satisfaction of the following terms and conditions:
        

       

      (a)
        the
        Issuer shall have given prior written notice to the Indenture Trustee of
        its
        selection of a different Overconcentration Option specifying in such notice
        the
        proposed effective date of such selection which date shall be no less than
        sixty
        (60) days after the date of such notice; 

       

      (b)
        the
        Issuer shall have given prior written notice to the Ratings Agencies with
        respect to each Outstanding Series of Investor Notes of its selection of
        a
        different Overconcentration Option specifying in such notice the proposed
        effective date of such selection which date shall be no less than sixty (60)
        days after the date of such notice;

       

       

      
        
          
          

        

        
          63

          
            

          

        

        
          
          

        

      

       

      (c)
        the
        proposed effective date of such selection shall be at least twelve (12) months
        from the date hereof, in the case of the first such selection, or, in any
        other
        case, from the effective date of the Overconcentration Option then in
        effect;

       

      (d)
        on
        the proposed effective date of such selection, both before and after giving
        effect to such selection, (i) no Asset Deficiency would exist and (ii) the
        amount on deposit in the Series Reserve Account with respect to each Outstanding
        Series of Investor Notes would be at least equal to the amount required to
        be on
        deposit therein in accordance with the terms of the applicable Indenture
        Supplement; 

       

      (e)
        no
        Amortization Event shall have occurred and is continuing with respect to
        any
        Outstanding Series of Investor Notes; 

       

      (f)
        the
        Indenture Trustee shall have provided a copy of such notice to each Investor
        Noteholder it has been instructed would be affected by the selection;
        and

       

      (g)
        the
        Indenture Trustee shall have been provided with an Opinion of Counsel that
        each
        condition to the effectiveness of such Overconcentration Option set forth
        in any
        Indenture Supplement relating to any Outstanding Series of Investor Notes
        shall
        have been satisfied.

       

      

       

      

      
        
          
             

          

          
          

        

        
          64

          
            

          

        

        
          
          

          
            

          

        

      

      

        IN
          WITNESS WHEREOF, the Indenture Trustee and the Issuer have caused, this
          Base
          Indenture to be duly executed by their respective duly authorized officers
          as of
          the day and year first written above.

         

        CHESAPEAKE
          FUNDING LLC,

        as
          Issuer

        

        By:
          /s/:
          Mark E. Johnson 

        Name:
          Mark E. Johnson

        Title:
          Vice President and Treasurer

        

        

        
          
             

          

          
            65

            
              

            

          

          
             

          

        

        JPMORGAN
          CHASE BANK, NATIONAL ASSOCIATION, as Indenture Trustee

        

        

        By:
          /s/:
          James P. Bowden 

        Name:
          James P. Bowden

        Title:
          Assistant Treasurer

        

      

       

      
        
          
          

        

        
          66

          
            

          

        

        
          
          

        

      

    

     

    

      SCHEDULE
        1

       

      TO
        THE

       

      BASE
        INDENTURE

       

      DEFINITIONS
        LIST

       

      “Accrual
        Period”
means
        the period from and including a Settlement Date (or, in the case of the initial
        Accrual Period, March 7, 2006) to but excluding the succeeding Settlement
        Date.

       

      “Additional
        Equipment Assets”
means
        the Master Lease Agreements, the Leases arising thereunder and the Leased
        Vehicles subject to such Leases and the Related Rights associated therewith
        transferred to the Origination Trust pursuant to the Additional Equipment
        Assets
        Contribution Agreement and allocated to the Lease SUBI.

       

      “Additional
        Equipment Assets Contribution Agreement”
means
        that certain Additional Equipment Assets Contribution Agreement dated as
        of
        October 28, 1999, between SPV and the Origination Trust.

       

      “Additional
        Equipment Assets Sale Agreement”
means
        that certain Additional Equipment Assets Sale Agreement dated as of October
        28,
        1999, between VMS and SPV.

       

      “Additional
        Units”
means
        any Unit allocated to the Lease SUBI Portfolio after June 30, 1999.

       

      “Adjusted
        Aggregate Unit Balance”
means,
        as of any date of determination, an amount equal to the sum of (a) the excess
        of
        (i) the Aggregate Lease Balance over (ii) the Aggregate Lease Adjustment
        Amount
        as of such date, (b) 90% of the excess of (i) the Aggregate Residual Value
        Amount over (ii) the Excess Residual Value Amount as of such date and (c)
        90% of
        the excess of (i) the Aggregate Paid-In Advance Balance over (ii) the Excess
        Paid-In Advance Amount as of such date. 

       

      “Administration
        Agreement”
means
        the Administration Agreement, dated as of the Initial Closing Date, by and
        among
        the Administrator, the Issuer, Holdings, the Origination Trust and the Indenture
        Trustee, as amended, modified or supplemented from time to time in accordance
        with its terms.

       

      “Administrator”
means
        VMS or a successor Administrator under the Administration
        Agreement.

       

      “Administrator
        Fee”
is
        defined in the Administration Agreement.

       

      “Affiliate”
means,
        with respect to any specified Person, another Person that directly, or
        indirectly through one or more intermediaries, controls or is controlled
        by or
        is under common control with the Person specified. For purposes of this
        definition, “control” means the power to direct the management and policies of a
        Person, directly or indirectly, whether through ownership of voting securities,
        by contract or otherwise; and “controlled” and “controlling” have meanings
        correlative to the foregoing.

       

      “Affiliate
        Issuer”
means
        any special purpose entity that is an Affiliate of PHH that has entered into
        financing arrangements secured by one or more Series of Investor
        Notes.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Aggregate
        Invested Amount”
means
        the sum of the Invested Amounts with respect to all Series of Outstanding
        Investor Notes.

       

      “Aggregate
        Invested Percentage”
means,
        with respect to Collections for any Monthly Period, the sum of the Invested
        Percentages for all Series of Outstanding Notes for such Monthly
        Period.

       

      “Aggregate
        Lease Adjustment Amount”
means,
        as of any date of determination, an amount equal to the sum of (a) the
        Overconcentration Amount as of such date, (b) the Excess Longer-Term Lease
        Amount as of such date, (c) the Excess State Obligor Risk Amount as of such
        date, (d) the Excess Consumer Lease Amount as of such date and (e) the Excess
        High Lease Balance Amount as of such date.

       

      “Aggregate
        Lease Balance”
means,
        as of any date of determination during an Accrual Period, an amount equal
        to the
        sum of the Lease Balances of each Eligible Lease allocated to the Lease SUBI
        Portfolio as of the last day of the Monthly Period immediately preceding
        the
        first day of such Accrual Period.

       

      “Aggregate
        Net Lease Losses”
means,
        for any Monthly Period, an amount equal to the excess of the aggregate Lease
        Balances of all Unit Leases that became Charged-Off Leases during such Monthly
        Period over the aggregate amount of Recoveries received during such Monthly
        Period.

       

      “Aggregate
        Paid-In Advance Balance”
means,
        as of any date of determination during an Accrual Period, an amount equal
        to the
        Cost of each Eligible Paid-In Advance Vehicle allocated to the Lease SUBI
        Portfolio as of the last day of the Monthly Period immediately preceding
        the
        first day of such Accrual Period (or, if any such Eligible Paid-In Advance
        Vehicle was allocated to the Lease SUBI Portfolio after the last day of such
        Monthly Period, the Cost thereof as of the date such Eligible Paid-In Advance
        Vehicle was allocated to the Lease SUBI Portfolio).

       

      “Aggregate
        Residual Value Amount”
means,
        as of any date of determination during an Accrual Period, an amount equal
        to the
        aggregate for each Unit Vehicle subject to a Closed-End Lease allocated to
        the
        Lease SUBI Portfolio as of the last day of the Monthly Period immediately
        preceding the first day of such Accrual Period of the lesser of (a) the Stated
        Residual Value of such Unit Vehicle and (b) the Net Book Value of such Unit
        Vehicle as of such day.

       

      “Aggregate
        Unit Balance”
means,
        as of any date of determination, an amount equal to the sum of (a) the Aggregate
        Lease Balance, (b) the Aggregate Paid-In Advance Balance and (c) the Aggregate
        Residual Value Amount as of such date.

       

      “ALG
        Residual Value”
means,
        with respect to a Leased Vehicle subject to a Closed-End Lease, an amount
        equal
        to the residual percentage of the manufacturer’s suggested retail price of such
        Leased Vehicle specified in the ALG Residual Percentage Guide published by
        Automotive Lease Guide for the make and model of such Leased Vehicle and
        the
        lease term of such Closed-End Lease.

       

      “Amortization
        Commencement Date”
means,
        with respect to a Series of Investor Notes, the date on which an Amortization
        Event with respect to such Series is deemed to have occurred pursuant to
        the
        related Indenture Supplement.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Amortization
        Event”
with
        respect to each Series of Investor Notes, is defined in the related Indenture
        Supplement.

       

      “Amortization
        Period”
means,
        with respect to any Series of Investor Notes or any Class within a Series
        of
        Investor Notes, the period following the Revolving Period during which principal
        is distributed to Investor Noteholders, which shall be the controlled
        amortization period, the principal amortization period, the rapid amortization
        period, or other amortization period, in each case as defined with respect
        to
        such Series in the related Indenture Supplement.

       

      “Annual
        Noteholders’ Tax Statement”
is
        defined in Section 4.4(c) of the Base Indenture.

       

      “Annual
        Servicing Report”
is
        defined in Section 4.1(a) of the Base Indenture.

       

      “Applicable
        Gain on Sale Account Percentage”
means,
        on any date of determination, the highest Series Gain on Sale Account Percentage
        with respect to any Series of Investor Notes Outstanding.

       

      “Applicable
        Law”
means
        all applicable laws, statutes, treaties, rules, codes, ordinances, regulations,
        certificates, orders, interpretations, licenses and permits of any Governmental
        Authority from time to time in effect, and judgments, decrees, injunctions,
        writs, orders or like action of any court, arbitrator or other administrative,
        judicial or quasi-judicial tribunal or agency of competent jurisdiction
        (including laws specifically mandating compliance by property
        owners).

       

      “Applicants”
is
        defined in Section 2.8 of the Base Indenture.

       

      “Asset
        Deficiency”
means,
        as of any date of determination, the amount, if any, by which the Required
        Aggregate Asset Amount as of such date exceeds the Adjusted Aggregate Unit
        Balance as of such date.

       

      “Asset
        Purchase Agreement”
means
        the Asset Sale Agreement, dated as of June 30, 1999, among VMS, PHH Consumer
        Lease and SPV, as amended, modified or supplemented from time to time in
        accordance with its terms.

       

      “Assignment
        and Assumption Agreement”
means
        the Assignment and Assumption Agreement, dated as of the Initial Closing
        Date,
        between SPV, Holdings, and acknowledged and consented to by PHH, the Delaware
        Trustee, VMS, the Origination Trust, Holdings and the Indenture Trustee.
        

       

      “Authorized
        Officer”
means
        (a) as to the Administrator, the Servicer or PHH, any of the President, any
        Executive Vice President, any Senior Vice President, any Vice President or
        the
        Assistant Treasurer of the Administrator, the Servicer or PHH, as the case
        may
        be, (b) as to the Issuer, any officer (or agent acting pursuant to a power
        of
        attorney) of the Issuer or any Manager acting on behalf of the Issuer and
        who is
        identified on the list of Authorized Officers delivered by the Manager to
        the
        Indenture Trustee on the Initial Closing Date (as such list may be modified
        or
        supplemented from time to time thereafter), (c) as to Holdings, any officer
        (or
        agent acting pursuant to a power of attorney) of Holdings or any manager
        of
        Holdings acting on behalf of Holdings and who is identified on the list of
        Authorized Officers delivered by Holdings to the Indenture Trustee on the
        Initial Closing Date (as such list may be modified or supplemented from time
        to
        time thereafter), (d) as to the Origination Trust, Wilmington Trust Company,
        in
        its capacity as Delaware Trustee of the Origination Trust and (e) as to SPV,
        any
        officer of SPV or any manager of SPV acting on behalf of SPV and who is
        identified on the list of Authorized Officers delivered by SPV to the Indenture
        Trustee on the Initial Closing Date (as such list may be modified or
        supplemented from time to time thereafter).

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Bankruptcy
        Code”
means
        The Bankruptcy Reform Act of 1978, as amended from time to time, and as codified
        as 11 U.S.C. Section 101 et seq.

       

      “Base
        Indenture”
means
        the Base Indenture, dated as of the Initial Closing Date, between the Issuer
        and
        the Indenture Trustee, as amended, modified or supplemented from time to
        time,
        exclusive of Indenture Supplements creating new Series of Investor
        Notes.

       

      “Bearer
        Notes”
is
        defined in Section 2.1 of the Base Indenture.

       

      “Bearer
        Rules”
means
        the provisions of the Internal Revenue Code, in effect from time to time,
        governing the treatment of bearer obligations, including sections 163(f),
        871,
        881, 1441, 1442 and 4701, and any regulations thereunder including, to the
        extent applicable to any Series of Notes, Proposed or Temporary
        Regulations.

       

      “Beneficial
        Owner”
means,
        with respect to a Book-Entry Note, the Person who is the beneficial owner
        of
        such Book-Entry Note, as may be reflected on the books of the Clearing Agency,
        or on the books of a Person maintaining an account with such Clearing Agency
        (directly or as an indirect participant, in accordance with the rules of
        such
        Clearing Agency).

       

      “Book-Entry
        Notes”
means
        beneficial interests in the Investor Notes, ownership and transfers of which
        shall be evidenced or made through book entries by a Clearing Agency as
        described in Section 2.10 of the Base Indenture; provided that after the
        occurrence of a condition whereupon book-entry registration and transfer
        are no
        longer permitted and Definitive Notes are issued to the Beneficial Owners,
        such
        Definitive Notes shall replace Book-Entry Notes.

       

      “Borrower”
means
        Holdings in its capacity as borrower under the Loan Agreement.

       

      “Borrowing
        Date”
is
        defined in Section 1.2 of the Loan Agreement.

       

      “Business
        Day”
means
        any day other than a Saturday, Sunday or other day on which banks are authorized
        or required by law to be closed in New York, Maryland or Delaware.

       

      “Capitalized
        Cost”
means,
        with respect to any Leased Vehicle, the amount identified by the Servicer
        as the
“Capitalized Cost” of such Leased Vehicle, including, to the extent provided
        therein, delivery charges, taxes and any registration or titling fees.

       

      “Certificate
        of Title”
means,
        with respect to any Leased Vehicle, the certificate of title or other evidence
        of ownership of such Leased Vehicle duly issued by the government department
        or
        agency in the jurisdiction in which such Leased Vehicle is registered in
        accordance with the certificate of title act or statute of the jurisdiction
        applicable to such Leased Vehicle or, to the extent that a certificate of
        title
        or other evidence of ownership has not been issued, the application (or copy
        thereof) for the foregoing.

       

      “Charged-Off
        Lease”
means
        a
        Lease or Consumer Lease that was or should have been charged off by the Servicer
        as uncollectible in accordance with the Policies or as to which a scheduled
        lease payment thereon is 270 or more days past due.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Charged-Off
        Receivable”
means
        a
        Fleet Receivable that was or should have been charged off by the Servicer
        as
        uncollectible in accordance with the Policies or which is 270 or more days
        past
        due..

       

      “Charge-Off
        Ratio”
means,
        for any specified Settlement Date, twelve times the quotient, expressed as
        a
        percentage, of (a) Aggregate Net Lease Losses for the preceding Monthly Period,
        divided by (b) the Aggregate Lease Balance as of the last day of the second
        preceding Monthly Period.

       

      “Class”
means,
        with respect to any Series of Notes, any one of the classes of Notes of that
        Series as specified in the related Indenture Supplement.

       

      “Class
        X 1999-1B Invested Amount”
is
        defined in the Fleet Receivable SUBI Supplement.

       

      “Clearing
        Agency”
means
        an organization registered as a “clearing agency” pursuant to Section 17A of the
        Exchange Act.

       

      “Clearing
        Agency Participant”
means
        a
        broker, dealer, bank, other financial institution or other Person for whom
        from
        time to time a Clearing Agency or a Foreign Clearing Agency effects book-entry
        transfers and pledges of securities deposited with the Clearing Agency or
        the
        Foreign Clearing Agency.

       

      “Clearstream”
means
        Clearstream Banking, société anonyme.

       

      “Closed-End
        Lease”
means
        a
        lease obligation in respect of a single vehicle which may arise pursuant
        to a
        master lease agreement providing for the lease of a fleet of vehicles or
        pursuant to a lease agreement providing for the lease of a single vehicle
        that,
        in each case, allows the lessee thereunder to return the vehicle subject
        thereto
        to the lessor at or prior to lease termination and obligates the lessee
        thereunder to pay to the lessor at lease termination only Incidental Lease
        Termination Charges.

       

      “Closing
        Date”
means
        the Initial Closing Date or any Series Closing Date.

       

      “Code”
means
        the Internal Revenue Code of 1986, as amended, reformed or otherwise modified
        from time to time, and any successor statute of similar import, in each case
        as
        in effect from time to time. References to sections of the Code also refer
        to
        any successor sections.

       

      “Collateral”
is
        defined in Section 3.1 of the Base Indenture.

       

      “Collection
        Account”
means
        securities account no. _____ entitled “Chesapeake Funding Collection Account”
maintained by the Collection Account Securities Intermediary pursuant to
        the
        Collection Account Control Agreement or any successor securities account
        maintained pursuant to the Collection Account Control Agreement.

       

      “Collection
        Account Control Agreement”
means
        the agreement among the Issuer, JPMorgan Chase, as securities intermediary,
        and
        the Indenture Trustee, dated as of the Initial Closing Date, relating to
        the
        Collection Account, as the same may be amended and supplemented from time
        to
        time.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Collection
        Account Securities Intermediary”
means
        JPMorgan Chase or any other securities intermediary that maintains the
        Collection Account pursuant to the Collection Account Control
        Agreement.

       

      “Collections”
means
        (a) all payments by or on behalf of Holdings under the Loan Agreement or
        the
        Loan Note, (b) all other payments on the Collateral, including, without
        limitation, (i) all monthly lease payments and other lease payments on the
        Unit
        Leases, (ii) all proceeds from the sale or other disposition of Unit Vehicles,
        including Recoveries, (iii) all insurance proceeds and warranty payments
        with
        respect to Unit Vehicles, (iv) all termination payments and Incidental Lease
        Termination Payments received in respect of the Unit Leases, (v) all other
        payments in respect of the Unit Leases, (vi) all payments in respect of the
        Fleet Receivables and payments by VMS under the Receivables Purchase Agreement,
        (vii) all payments by VMS or PHH Consumer Lease under the Asset Purchase
        Agreement, (viii) all payments by the Origination Trust under the Origination
        Trust Guaranty, (ix) all payments by the Intermediary to the Indenture Trustee
        or the Issuer of funds transferred from a Joint Collection Account pursuant
        to
        the Master Exchange Agreement in accordance with the terms thereof, (x) all
        payments made by the Intermediary to the Indenture Trustee or the Issuer
        of
        funds transferred from a Joint Disbursement Account or the Reservoir Account
        pursuant to the terms of the Master Trust Agreement in accordance with the
        terms
        thereof and (xi) all payments in respect of any Hedging Instruments in the
        Collateral, whether such payments are in the form of cash, checks, wire
        transfers or other forms of payment and (c) all amounts earned on Permitted
        Investments of funds in the Collection Account and, to the extent so specified
        in an Indenture Supplement, in a Series Account.

       

      “Common
        Member”
means
        PHH Sub 2, as the holder of the Common Membership Interest.

       

      “Common
        Membership Interest”
means
        the Common Membership Interest issued pursuant to the LLC
        Agreement.

       

      “Consumer
        Lease”
means
        an Open-End Lease or a Closed-End Lease originated by PHH Consumer Lease,
        individually or on behalf of the Origination Trust, that is in all material
        respects in a form attached to the Series 1999-1 SUBI Servicing
        Supplement.

       

      “Contingent
        Obligation”
as
        applied to any Person, means any direct or indirect liability, contingent
        or
        otherwise, of that Person (a) with respect to any indebtedness, lease, dividend,
        letter of credit or other obligation of another if the primary purpose or
        intent
        thereof by the Person incurring the Contingent Obligation is to provide
        assurance to the obligee of such obligation of another that such obligation
        of
        another will be paid or discharged, or that any agreements relating thereto
        will
        be complied with, or that the holders of such obligation will be protected
        (in
        whole or in part) against loss in respect thereof or (b) under any letter
        of
        credit issued for the account of that Person or for which that Person is
        otherwise liable for reimbursement thereof. Contingent Obligation shall include
        (a) the direct or indirect guarantee, endorsement (otherwise than for collection
        or deposit in the ordinary course of business), co-making, discounting with
        recourse or sale with recourse by such Person of the obligation of another
        and
        (b) any liability of such Person for the obligations of another through any
        agreement (contingent or otherwise) (i) to purchase, repurchase or otherwise
        acquire such obligation or any security therefor, or to provide funds for
        the
        payment or discharge of such obligation (whether in the form of loans, advances,
        stock purchases, capital contributions or otherwise), (ii) to maintain the
        solvency of any balance sheet item, level of income or financial condition
        of
        another or (iii) to make take-or-pay or similar payments if required regardless
        of non-performance by any other party or parties to an agreement, if in the
        case
        of any agreement described under subclause (i) or (ii) of this sentence the
        primary purpose or intent thereof is as described in the preceding sentence.
        The
        amount of any Contingent Obligation shall be equal to the amount of the
        obligation so guaranteed or otherwise supported.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Contractual
        Obligation”
means,
        with respect to any Person, any provision of any security issued by that
        Person
        or of any indenture, mortgage, deed of trust, contract, undertaking, agreement
        or other instrument to which that Person is a party or by which it or any
        of its
        properties is bound or to which it or any of its properties is
        subject.

       

      “Contribution
        Agreement”
means
        the Contribution Agreement, dated as of the Initial Closing Date, between
        Holdings and the Origination Trust, as amended, modified or supplemented
        from
        time to time in accordance with its terms.

       

      “Controlled
        Group”
means,
        with respect to any Person, such Person, whether or not incorporated, and
        any
        corporation, trade or business that is, along with such Person, a member
        of a
        controlled group of corporations or a controlled group of trades or businesses,
        as described in Sections 414(b) and (c), respectively of the Code.

       

      “Corporate
        Trust Office”
means
        the principal office of the Indenture Trustee at which at any particular
        time
        its corporate trust business shall be administered, which office at the date
        of
        the execution of the Base Indenture is located at (i) soley for purposes
        of the
        transfer, exchange or surrender of Investor Notes, 2001 Bryan Street,
        10th
        Floor,
        Dallas, Texas 75201, Attention: Worldwide Securities Services/Structured
        Finance
        Services - Chesapeake Funding LLC and (ii) for all other purposes, 4 New
        York
        Plaza 6th
        Floor,
        New York, New York 10004, Att: Worldwide Securities Services/Structured Finance
        Services - Chesapeake Funding LLC.

       

      “Cost”
means,
        with respect to any Paid-In Advance Vehicle, the price paid for such Vehicle
        to
        the dealer, the manufacturer or a vendor, plus delivery charges and taxes
        and
        any registration or titling fees.

       

      “Coupon”
is
        defined in Section 2.1 of the Base Indenture.

       

      “CP
        Rate”
means
        the rate on commercial paper for each day set forth in Statistical Release
        H.15(519), “Selected Interest Rates” published by the Board Of Governors of the
        Federal Reserve System.

       

      “Credit
        Enhancement”
means,
        with respect to any Series of Investor Notes, the subordination, cash collateral
        account, collateral interest, letter of credit, surety bond, insurance policy,
        spread account, reserve account, cross-support feature, interest rate swap,
        currency swap or any other contract or agreement for the benefit of the holder
        of the Investor Notes of such Series as designated in the related Indenture
        Supplement.

       

      “Custodian
        Agreement”
means
        the Custodian Agreement, dated as of June 30, 1999, by and among the Custodian,
        the Servicer and the Origination Trust, as amended, modified or supplemented
        from time to time in accordance with its terms, and any other Custodian
        Agreement entered into in accordance with the terms and conditions of the
        Origination Trust Servicing Agreement.

       

      “Custodian”
means
        the party named as such in the Custodian Agreement until a successor replaces
        it
        in accordance with the applicable provisions of the Custodian Agreement and
        thereafter means the successor serving thereunder.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Default”
means
        any occurrence that is, or with notice or the lapse of time or both would
        become, an Event of Default.

       

      “Definitions
        List”
means
        this Definitions List, as amended or modified from time to time.

       

      “Definitive
        Notes”
is
        defined in Section 2.10 of the Base Indenture.

       

      “Delaware
        Trustee”
means
        Wilmington Trust Company, in its capacity as Delaware Trustee of the Origination
        Trust.

       

      “Delinquency
        Ratio”
means,
        for any specified Settlement Date, the quotient, expressed as a percentage,
        of
        (a) the aggregate billings with respect to all Leases and all Fleet Receivables
        which were unpaid for 60 days or more from the original due date thereof
        as of
        the last day of the immediately preceding Monthly Period divided by (b) the
        sum
        of (i) the aggregate billings with respect to all Leases and all Fleet
        Receivables which were unpaid as of the last day of the second preceding
        Monthly
        Period and (ii) the aggregate amount billed with respect to all Leases and
        all
        Fleet Receivables during the immediately preceding Monthly Period.

       

      “Depository”
is
        defined in Section 2.10 of the Base Indenture.

       

      “Depository
        Agreement”
means,
        with respect to a Series having Book-Entry Notes, the agreement among the
        Issuer, the Indenture Trustee and the Clearing Agency or the Foreign Clearing
        Agency, or as otherwise provided in the related Indenture
        Supplement.

       

      “Deposit
        Date”
means
        each Business Day on which Collections are deposited into the Collection
        Account.

       

      “Deposit
        Report”
is
        defined in Section 4.1 of the Base Indenture.

       

      “Determination
        Date”
means
        the second Business Day prior to each Settlement Date.

       

      “Dividend
        Rate”
means,
        with respect to each series of Preferred Membership Interests, the rate at
        which
        distributions of interest with respect to such Preferred Membership Interests
        are made.

       

      “DLPT
        Loan Collateral”
is
        defined in Section 7.1(c) of the Loan Agreement.

       

      “Dollar”
and
        the
        symbol “$”
mean
        the lawful currency of the United States.

       

      “Eligible
        Consumer Lease”
means
        a
        Consumer Lease that as of the date allocated to the Lease SUBI Portfolio
        satisfied the following eligibility criteria:

       

      (i)
        it
        was not a Charged-Off Lease;

       

      (ii)
        it
        was not an Ineligible Delinquent Lease;

       

      (iii)
        it
        was an obligation of an Eligible Obligor; 

       

      (iv)
        it
        had an initial term of 60 months or less;

       

      (v)
        it
        was denominated and payable only in Dollars in the United States;

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (vi)
        it
        was originated and has been administered since origination in accordance
        with
        Applicable Law;

       

      (vii)
        it
        was originated in accordance with the Policies;

       

      (viii)
        it
        did not contravene in any material respect any Applicable Law and VMS or
        PHH
        Consumer Lease is not in violation in any material respect of any Applicable
        Law
        in connection with it;

       

      (ix)
        it
        was not subject to any dispute in whole or in part or to any offset,
        counterclaim, defense, rescission, recoupment or subordination;

       

      (x)
        it
        was the legal, valid and binding obligation of the Obligor thereunder,
        enforceable against such Obligor to pay the full amount thereof in accordance
        with its terms, except as enforceability may be limited by applicable
        bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
        the
        enforcement of creditors’ rights generally and by general equitable principles
        (whether enforcement is sought by proceedings in equity or law);

       

      (xi)
        the
        Origination Trust has only one “original” counterpart of such Consumer Lease and
        such original is held by the Custodian;

       

      (xii)
        it
        is either an Open-End Lease or a Closed-End Lease;

       

      (xiii)
        it
        is a “hell or high water” net lease under which the Obligor’s payment
        obligations thereunder are absolute, unconditional and noncancellable and
        not
        subject to abatement or adjustment;

       

      (xiv)
        the
        Obligor thereunder is required to maintain casualty insurance with respect
        to
        the related Leased Vehicle in accordance with the Policies;

       

      (xv)
        it
        was originated by the Origination Trust;

       

      (xvi)
        the
        Obligor of which has accepted the related Leased Vehicle;

       

      (xvii)
        it
        provides for equal monthly depreciation payments and accrues a finance or
        other
        lease charge on the Net Book Value of the related Leased Vehicle at a floating
        rate at least equal to the CP Rate from time to time or at a fixed
        rate;

       

      (xviii)
        if a Closed-End Lease, the Stated Residual Value of the related Leased Vehicle
        was no greater than the ALG Residual Value thereof at origination; 

       

      (xix)
        if
        a Fixed Rate Lease, on or before the date on which such Fixed Rate Lease
        was
        allocated to the Lease SUBI Portfolio, the Issuer held any Lease Rate Cap
        with
        respect to such Fixed Rate Lease required to be held by the Issuer by the
        terms
        of any Indenture Supplement;

       

      (xx)
        if a
        Floating Rate Lease, the Obligor thereunder has no right to convert the floating
        rate at which the finance charges accrue thereunder to a fixed rate;

       

      (xxi)
        the
        Leased Vehicle leased thereunder (x) is free and clear of all Liens (other
        than
        Permitted Liens) and (y) the Certificate of Title for such Leased Vehicle
        is
        registered in the name of the Origination Trust; and

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (xxii)
        the Certificate of Title for the Leased Vehicle leased thereunder indicates
        only
        a Lien in the name of (1) SPV or the Issuer, in the case of a Consumer Lease
        originated by the Origination Trust prior to June 30, 2006 or (2) the Issuer,
        in
        the case of all other Consumer Leases (or, such a Certificate of Title has
        been
        applied for).

       

      “Eligible
        Deposit Account”
means
        (a) a segregated identifiable trust account established in the trust department
        of a Qualified Trust Institution or (b) a separately identifiable deposit
        account established in the deposit taking department of a Qualified
        Institution.

       

      “Eligible
        Lease”
means
        either (a) a Lease that as of the date allocated to the Lease SUBI Portfolio
        was
        an Eligible Consumer Lease or (b) a Lease that as of the date allocated to
        the
        Lease SUBI Portfolio was under an Eligible Master Lease and satisfied the
        following eligibility criteria:

       

      (a)
        it
        had an initial term of 144 months or less and a remaining term of 120 months
        or
        less;

       

      (b)
        the
        Obligor of which has accepted the related Leased Vehicle;

       

      (c)
        except for any Lease that is an Additional Equipment Asset, if an Open-End
        Lease, it provides for equal monthly depreciation payments and, if a Closed-End
        Lease, it provides for monthly depreciation payments that over the term of
        the
        Lease reduce the Capitalized Cost of the related Leased Vehicle to the Stated
        Residual Value thereof;

       

      (d)
        if an
        Open-End Lease that is an Additional Equipment Asset, it provides for at
        least
        quarterly depreciation payments and, if a Closed-End Lease that is an Additional
        Equipment Asset, it provides for at least quarterly depreciation payments
        that
        over the term of the Lease reduce the Capitalized Cost of the related Leased
        Vehicle to the Stated Residual Value thereof;

       

      (e)
        it
        accrues a finance or other lease charge on the Net Book Value of the related
        Leased Vehicle at a floating rate at least equal to the CP Rate from time
        to
        time or at a fixed rate;

       

      (f)
        if a
        Closed-End Lease, the Stated Residual Value of the related Leased Vehicle
        was no
        greater than the ALG Residual Value thereof at origination or, in the case
        of
        any Leased Vehicle the residual value of which is not specified in the ALG
        Residual Percentage Guide published by the Automotive Lease Guide, the estimated
        residual value of the related Leased Vehicle contained in a comparable industry
        source of equipment residual values or if such a source is not available,
        contained in a source VMS believes is reasonable; 

       

      (g)
        on or
        before the date on which such Lease was allocated to the Lease SUBI Portfolio,
        the Issuer held any Lease Rate Cap with respect to such Lease required to
        be
        held by the terms of the Base Indenture or any Indenture Supplement;

       

      (h)
        if a
        Floating Rate Lease and the Obligor thereunder has the right to convert the
        floating rate at which the finance charges accrue thereunder to a fixed rate,
        upon conversion the fixed rate will be at least equal to the sum of the PHH
        Treasury Note Rate on the conversion date and 0.50%; 

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (i)
        the
        Leased Vehicle leased thereunder (x) is free and clear of all Liens (other
        than
        Permitted Liens) and (y) if such Leased Vehicle is subject to a certificate
        of
        title act or statute, the Certificate of Title for such Leased Vehicle is
        registered in the name of the Origination Trust; and

       

      (j)
        (x)
        if the Leased Vehicle leased thereunder is subject to a certificate of title
        act
        or statute, the Certificate of Title for such Leased Vehicle indicates only
        a
        Lien in the name of (1) VMS, in the case of a Lease originated by VMS and
        assigned to the Origination Trust, (2) SPV or the Issuer, in the case of
        a Lease
        originated by the Origination Trust prior to June 30, 2006 or (3) the Issuer,
        in
        the case of all other Leases (or, such a Certificate of Title has been applied
        for) or (y) if such Leased Vehicle is not subject to a certificate of title
        act
        or statute, all filings necessary to evidence the security interest of (1)
        VMS,
        in the case of a Lease originated by VMS and assigned to the Origination
        Trust,
        (2) SPV or the Issuer, in the case of a Lease originated prior to June 30,
        2006
        or (3) the Issuer, in the case of all other Leases, in such Leased Vehicle
        have
        been made in all appropriate jurisdictions.

       

      “Eligible
        Master Lease”
will
        mean each Master Lease Agreement that as of the date a Lease thereunder or
        Paid-In Advance Vehicle relating thereto is allocated to the Lease SUBI
        satisfied the following eligibility criteria:

       

      (a)
        it
        was not a Charged-Off Lease;

       

      (b)
        it
        was not an Ineligible Delinquent Lease;

       

      (c)
        it
        was an obligation of an Eligible Obligor; 

       

      (d)
        it
        was denominated and payable only in Dollars in the United States;

       

      (e)
        it
        was originated and has been administered since origination in accordance
        with
        Applicable Law;

       

      (f)
        it
        was originated in accordance with the Policies;

       

      (g)
        it
        did not contravene in any material respect any Applicable Law and VMS is
        not in
        violation in any material respect of any Applicable Law in connection with
        it;

       

      (h)
        it
        was not subject to any dispute in whole or in part or to any offset,
        counterclaim, defense, rescission, recoupment or subordination;

       

      (i)
        it
        was the legal, valid and binding obligation of the Obligor thereunder,
        enforceable against such Obligor to pay the full amount thereof in accordance
        with its terms, except as enforceability may be limited by applicable
        bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
        the
        enforcement of creditors’ rights generally and by general equitable principles
        (whether enforcement is sought by proceedings in equity or law);

       

      (j)
        the
        Origination Trust has only one “original” counterpart of such Master Lease
        Agreement and such original is held by the Custodian;

       

      (k)
        it is
        either an Open-End Lease or a Closed-End Lease;

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (l)
        it is
        a “hell or high water” net lease under which the Obligor’s payment obligations
        thereunder are absolute, unconditional and noncancellable and not subject
        to
        abatement or adjustment;

       

      (m)
        the
        Obligor thereunder is required to maintain casualty insurance or to self-insure
        with respect to the related Leased Vehicles in accordance with the
        Policies;

       

      (n)
        if
        not originated by the Origination Trust, all right, title and interest in
        it has
        been (i) validly sold to the Origination Trust by VMS pursuant to that certain
        Assignment and Assumption Agreement dated December 17, 1998, (ii) validly
        assigned to the Origination Trust by SPV pursuant to the Old Contribution
        Agreement or (iii), in the case of any Master Lease Agreement that is an
        Additional Equipment Asset, validly assigned to the Origination Trust by
        SPV
        pursuant to the Additional Equipment Assets Contribution Agreement and, if
        assigned by SPV to the Origination Trust, was validly sold by VMS to SPV
        pursuant to the Asset Purchase Agreement or, in the case of any Master Lease
        Agreement that is an Additional Equipment Asset, validly sold by VMS to SPV
        pursuant to the Additional Equipment Assets Sale Agreement; and

       

      (o)
        any
        consents, approvals or authorizations necessary for the assignment and sale
        thereof by VMS to the Origination Trust have been obtained.

       

      “Eligible
        Obligor”
means
        each Obligor in respect of a Master Lease Agreement, a Consumer Lease or
        a Fleet
        Receivable that satisfies the following eligibility criteria:

       

      (a)
        its
        billing address is located in the United States;

       

      (b)
        it is
        not the United States federal government, or any subdivision thereof, or
        any
        agency, department or instrumentality thereof; 

       

      (c)
        it is
        not an Affiliate of PHH; and

       

      (d)
        it is
        not the subject of any voluntary or involuntary bankruptcy proceeding, unless,
        in the case of a Master Lease Agreement, a bankruptcy court shall have entered
        an order reaffirming such Obligor’s obligations under such Master Lease
        Agreement.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Eligible
        Paid-In Advance Vehicle”
means
        a
        Unit Paid-In Advance Vehicle acquired at the request of an Obligor who as
        of the
        date such Paid-In Advance Vehicle is allocated to the Lease SUBI Portfolio
        is
        party to an Eligible Master Lease or has agreed to be bound by a Master Lease
        Agreement.

       

      “Eligible
        Receivable”
means,
        as of any date of determination, each Fleet Receivable that satisfies the
        following eligibility criteria:

       

      (a)
        it is
        an obligation of an Eligible Obligor; 

       

      (b)
        it is
        not a Charged-Off Receivable;

       

      (c)
        it is
        denominated and payable only in Dollars in the United States;

       

      (d)
        it
        and the related Fleet Service Contract do not contravene in any material
        respect
        any Applicable Law and VMS is not in violation in any material respect of
        any
        Applicable Law in connection with it or the related Fleet Service
        Contract;

       

      (e)
        the
        related Fleet Service Contract was originated in accordance with the
        Policies;

       

      (f)
        it
        has been billed, the goods or services giving rise to it have been provided
        and
        it is payable within 45 days of the billing date; 

       

      (g)
        it is
        an “eligible asset” within the meaning of Rule 3a-7 promulgated under the
        Investment Company Act;

       

      (h)
        if
        contributed to the Origination Trust prior to the Initial Closing Date, (i)
        it
        is not subject to the laws of any jurisdiction whose laws would prohibit
        the
        assignment and sale thereof by VMS to SPV pursuant to the Old Receivables
        Purchase Agreement and the contribution thereof by SPV to the Origination
        Trust
        pursuant to the Old Contribution Agreement, (ii) any consents, approvals
        or
        authorizations necessary for the assignment and sale thereof by VMS to SPV
        pursuant to the Old Receivables Purchase Agreement and the contribution thereof
        by SPV to the Origination Trust pursuant to the Old Contribution Agreement
        have
        been obtained with respect to such Fleet Receivable, and (iii) all right,
        title
        and interest in it has been validly sold by VMS to SPV pursuant to the Old
        Receivables Purchase Agreement and validly assigned by SPV to the Origination
        Trust pursuant to the Old Contribution Agreement;

       

      (i)
        if
        contributed to the Origination Trust on or after the Initial Closing Date,
        (i)
        it is not subject to the laws of any jurisdiction whose laws would prohibit
        the
        assignment and sale thereof by VMS to Holdings pursuant to the Receivables
        Purchase Agreement and the contribution thereof by Holdings to the Origination
        Trust pursuant to the Contribution Agreement, (ii) any consents, approvals
        or
        authorizations necessary for the assignment and sale thereof by VMS to Holdings
        pursuant to the Receivables Purchase Agreement and the contribution thereof
        by
        Holdings to the Origination Trust pursuant to the Contribution Agreement
        have
        been obtained with respect to such Fleet Receivable, and (iii) all right,
        title
        and interest in it has been validly sold by VMS to Holdings pursuant to the
        Receivables Purchase Agreement and validly assigned by Holdings to the
        Origination Trust pursuant to the Contribution Agreement;

       

      (j)
        the
        Origination Trust has legal and beneficial ownership therein free and clear
        of
        all Liens other than Permitted Liens;

       

      (k)
        it is
        not subject to any dispute in whole or in part or to any offset, counterclaim,
        defense, rescission, recoupment or subordination;

       

      (l)
        it is
        at all times the legal, valid and binding obligation of the Obligor thereon,
        enforceable against such Obligor to pay the full amount thereof in accordance
        with its terms, except as enforceability may be limited by applicable
        bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
        the
        enforcement of creditors’ rights generally and by general equitable principles
        (whether enforcement is sought by proceedings in equity or law); and

       

      (m)
        it
        constitutes an “account” or a “general intangible” under the applicable
        UCC.

       

      “Enhancement
        Provider”
means,
        with respect to any Series, the Person, if any, designated as such in the
        related Indenture Supplement.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “ERISA”
means
        the Employee Retirement Income Security Act of 1974, as amended, and any
        successor statute of similar import, in each case as in effect from time
        to
        time. References to sections of ERISA also refer to any successor
        sections.

       

      “Euroclear”
means
        Euroclear System.

       

      “Event
        of Default”
is
        defined in Section 9.1 of the Base Indenture.

       

      “Excess
        Consumer Lease Amount”
means,
        as of any date of determination during an Accrual Period, an amount equal
        to the
        excess, if any, of (a) the aggregate Lease Balance of all Eligible Leases
        that
        are Consumer Leases allocated to the Lease SUBI Portfolio as of the last
        day of
        the Monthly Period immediately preceding the first day of such Accrual Period
        over (b) an amount equal to 1.0% of the Aggregate Lease Balance as of such
        date.

       

      “Excess
        Damage Charges”
means
        the charges under a Lease due to damage to the related Leased Vehicle over
        a
        prescribed limit.

       

      “Excess
        Fleet Receivable Amount”
means,
        with respect to any Settlement Date, an amount equal to the excess, if any,
        of
        (a) the aggregate amount of Collections in respect of the Fleet Receivables
        received by Holdings and deposited into the Collection Account during the
        immediately preceding Monthly Period over (b) the Class X 1999-1B Invested
        Amount as of the immediately preceding Settlement Date.

       

      “Excess
        High Lease Balance Amount”
means,
        as of any date of determination during an Accrual Period, an amount equal
        to the
        excess, if any, of (a) the aggregate Lease Balance of all Eligible Leases
        having
        a Lease Balance in excess of $1,000,000 allocated to the Lease SUBI Portfolio
        as
        of the last day of the Monthly Period immediately preceding the first day
        of
        such Accrual Period over (b) an amount equal to 0.50% of the Aggregate Lease
        Balance as of such date.

       

      “Excess
        Longer-Term Lease Amount”
means,
        as of any date of determination during an Accrual Period, an amount equal
        to the
        greater of (a) the excess, if any, of (i) the aggregate Lease Balance of
        all
        Eligible Leases having remaining terms of longer than five years allocated
        to
        the Lease SUBI Portfolio as of the last day of the Monthly Period immediately
        preceding the first day of such Accrual Period over (ii) an amount equal
        to 20%
        of the Aggregate Lease Balance as of such date and (b) the excess, if any,
        of
        (i) the aggregate Lease Balance of all Eligible Leases having remaining terms
        of
        longer than seven years allocated to the Lease SUBI Portfolio as of the last
        day
        of the Monthly Period immediately preceding the first day of such Accrual
        Period
        over (ii) an amount equal to 7.5% of the Aggregate Lease Balance as of such
        date.

       

      “Excess
        Mileage Charges”
means
        the charges under a Lease due to mileage on the related Leased Vehicle over
        a
        prescribed limit.

       

      “Excess
        Paid-In Advance Amount”
means,
        as of any date of determination during an Accrual Period, an amount equal
        to the
        greatest of (a) the excess, if any, of (i) the aggregate Cost of each Eligible
        Paid-In Advance Vehicle allocated to the Lease SUBI Portfolio as of the last
        day
        of the Monthly Period immediately preceding the first day of such Accrual
        Period
        (or, if any such Eligible Paid-In Advance Vehicle was allocated to the Lease
        SUBI after the last day of such Monthly Period, the Cost thereof as of the
        date
        such Eligible Paid-In Advance Vehicle was allocated to the Lease SUBI Portfolio)
        over (ii) an amount equal to 10% of the Aggregate Unit Balance as of such
        date,
        (b) the excess, if any, of (i) the aggregate Cost of each Eligible Paid-In
        Advance Vehicle allocated to the Lease SUBI Portfolio for more than 60 days
        as
        of the last day of the Monthly Period immediately preceding the first day
        of
        such Accrual Period over (ii) an amount equal to 2.5% of the Aggregate Unit
        Balance as of such date and (c) the aggregate Cost of each Eligible Paid-In
        Advance Vehicle allocated to the Lease SUBI Portfolio for more than 120 days
        as
        of the last day of the Monthly Period immediately preceding the first day
        of
        such Accrual Period.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Excess
        Residual Value Amount”
means,
        as of any date of determination during an Accrual Period, an amount equal
        to the
        excess, if any, of (i) the Aggregate Residual Value Amount as of such date
        over
        (ii) an amount equal to 7.5% of the Aggregate Unit Balance as of such
        date.

       

      “Excess
        State Obligor Risk Amount”
means,
        as of any date of determination during an Accrual Period, an amount equal
        to the
        excess, if any, of (a) the aggregate Lease Balance of all Eligible Leases
        the
        Obligor of which is a state or local government or any subdivision thereof,
        or
        any agency, department or instrumentality thereof allocated to the Lease
        SUBI
        Portfolio as of the last day of the Monthly Period immediately preceding
        the
        first day of such Accrual Period over (b) an amount equal to 3.0% of the
        Aggregate Lease Balance as of such date.

       

      “Exchange
        Act”
means
        the Securities Exchange Act of 1934, as amended.

       

      “Expected
        Final Distribution Date”
means,
        with respect to any applicable Series of Investor Notes, the date, if any,
        stated in the related Indenture Supplement as the date on which such Series
        of
        Investor Notes is expected to be paid in full.

       

      “FDIC”
means
        the Federal Deposit Insurance Corporation.

       

      “Fixed
        Rate Lease”
means
        a
        Lease accruing finance charges at a fixed rate per annum.

       

      “Fleet
        Receivables”
means
        all amounts payable under the Fleet Service Contracts, a beneficial interest
        in
        a portion of which is represented by the Fleet Receivable SUBI
        Certificate.

       

      “Fleet
        Receivable SUBI”
means
        that special unit of beneficial interest in the Origination Trust created
        by the
        Fleet Receivable SUBI Supplement in a pool of Fleet Receivables either (i)
        acquired by SPV from VMS pursuant to the Old Receivables Purchase Agreement
        and
        contributed by SPV to the Origination Trust pursuant to the Old Contribution
        Agreement prior to the Initial Closing Date or (ii) acquired by Holdings
        from
        VMS pursuant to the Receivables Purchase Agreement and contributed by Holdings
        to the Origination Trust pursuant to the Contribution Agreement on or after
        the
        Initial Closing Date and all Origination Trust Assets associated with the
        Fleet
        Receivables, including all right, title and interest of Holdings under the
        Receivables Purchase Agreement.

       

      “Fleet
        Receivable SUBI Certificate”
means
        the Class X 1999-1B Sold SUBI Certificate, a certificate of beneficial
        ownership, representing a portion of the Fleet Receivable SUBI issued pursuant
        to the Fleet Receivable SUBI Supplement.

       

      “Fleet
        Receivable SUBI Supplement”
means
        the Amended and Restated Sold SUBI Supplement 1999-1B to the Origination
        Trust
        Agreement, dated as of the Initial Closing Date, among Holdings, as settlor
        and
        initial beneficiary, VMS, as UTI Trustee and Servicer, and Wilmington Trust
        Company, as Delaware Trustee and SUBI Trustee.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Fleet
        Service Contract”
means
        a
        fleet maintenance contract, fleet management contract, fuel card contract
        or any
        other service contract the fees for which are billed or would be billed by
        VMS,
        together with the Leases.

       

      “Floating
        Rate Lease”
means
        a
        Lease accruing finance charges at a floating rate per annum.

       

      “Foreign
        Clearing Agency”
means
        Clearstream and Euroclear.

       

      “GAAP”
means
        the generally accepted accounting principles promulgated or adopted by the
        Financial Accounting Standards Board and its predecessors and successors
        from
        time to time.

       

      “Gain
        on Sale Account”
means
        securities account no. _____ entitled “Chesapeake Funding Gain on Sale Account”
maintained by the Gain on Sale Securities Intermediary pursuant to the Gain
        on
        Sale Account Control Agreement or any successor securities account maintained
        pursuant to the Gain on Sale Account Control Agreement.

       

      “Gain
        on Sale Account Control Agreement”
means
        the agreement among the Issuer, JPMorgan Chase, as securities intermediary,
        and
        the Indenture Trustee, dated as of the Initial Closing Date, relating to
        the
        Gain on Sale Account, as the same may be amended and supplemented from time
        to
        time.

       

      “Gain
        on Sale Account Securities Intermediary”
means
        JPMorgan Chase or any other securities intermediary that maintains the Gain
        on
        Sale Account pursuant to the Gain on Sale Account Control
        Agreement.

       

      “Global
        Note”
is
        defined in Section 2.12 of the Base Indenture.

       

      “Governmental
        Authority”
means
        the United States of America, any state or other political subdivision thereof
        and any entity exercising executive, legislative, judicial, regulatory or
        administrative functions of or pertaining to government.

       

      “Hedging
        Instrument”
means
        one or more Lease Rate Caps or other interest rate swap contracts or similar
        contracts entered into by, or assigned to, the Issuer, as specified in the
        Base
        Indenture or any Indenture Supplement, providing limited protection against
        interest rate risks.

       

      “Holdings”
means
        Chesapeake Finance Holdings LLC, a Delaware limited liability company (formerly
        known as Chesapeake Funding LLC), and its permitted successors.

       

      “Incidental
        Lease Termination Charges”
means
        all Excess Damage Charges, Excess Mileage Charges and any charges imposed
        upon
        the early termination of a Lease.

       

      “Indebtedness”,
        as
        applied to any Person, means, without duplication, (a) all indebtedness for
        borrowed money, (b) that portion of obligations with respect to any lease
        of any
        property (whether real, personal or mixed) that is properly classified as
        a
        liability on a balance sheet in conformity with GAAP, (c) notes payable and
        drafts accepted representing extensions of credit whether or not representing
        obligations for borrowed money, (d) any obligation owed for all or any part
        of
        the deferred purchase price for property or services, which purchase price
        is
        (i) due more than six months from the date of the incurrence of the obligation
        in respect thereof or (ii) evidenced by a note or similar written instrument,
        (e) all indebtedness secured by any Lien on any property or asset owned by
        that
        Person regardless of whether the indebtedness secured thereby shall have
        been
        assumed by that Person or is nonrecourse to the credit of that Person, and
        (f)
        without duplicating any of the foregoing, all Contingent Obligations of such
        Person in respect of any of the foregoing.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Indenture”
means
        the Base Indenture and all Supplements thereto, including any Indenture
        Supplement.

       

      “Indenture
        Supplement”
means,
        with respect to any Series of Investor Notes, a supplement to the Base Indenture
        complying with the terms of Section 2.2 of the Base Indenture, executed in
        conjunction with any issuance of any Series of Investor Notes (or, in the
        case
        of the issuance of Investor Notes on the Initial Closing Date, the supplement
        executed in connection with the issuance of such Investor Notes).

       

      “Indenture
        Trustee”
means
        the party named as such in the Indenture until a successor replaces it in
        accordance with the applicable provisions of the Indenture and thereafter
        means
        the successor serving thereunder.

       

      “Independent”
means,
        when used with respect to any specified Person, that the person (a) is in
        fact
        independent of the Issuer, any other obligor upon the Investor Notes, VMS
        and
        any Affiliate of any of the foregoing persons, (b) does not have any direct
        financial interest or any material indirect financial interest in the Issuer,
        any such other obligor, VMS or any Affiliate of any of the foregoing Persons
        and
        (c) is not connected with the Issuer, any such other obligor, VMS or any
        Affiliate of any of the foregoing Persons as an officer, employee, promoter,
        underwriter, trustee, partner, director or Person performing similar
        functions.

       

      “Independent
        Certificate”
means
        a
        certificate or opinion to be delivered to the Indenture Trustee under the
        circumstances described in, and otherwise complying with, the applicable
        requirements of Section 13.1, of the Base Indenture made by an Independent
        engineer, appraiser or other expert appointed by the Issuer and approved
        by the
        Indenture Trustee in the exercise of reasonable care, and such opinion or
        certificate shall state that the signer has read the definition of “Independent”
herein and that the signer is Independent within the meaning thereof.

       

      “Independent
        Manager”
is
        defined in the LLC Agreement.

       

      “Ineligible
        Delinquent Lease”
means
        (a) a Master Lease Agreement as to which 50% or greater of the billings to
        the
        Obligor thereof remain unpaid for more than 60 days from the original due
        date
        or which has been declared in default under the Policies or (b) a Consumer
        Lease
        as to which any amounts remain unpaid for more than 60 days from the original
        due date or which has been declared in default under the Policies.

       

      “Initial
        Closing Date”
means
        March 7, 2006.

       

      “Initial
        Invested Amount”
means,
        with respect to any Series of Investor Notes, the aggregate initial principal
        amount specified in the related Indenture Supplement.

       

      “Initial
        Units”
means,
        as of June 30, 1999, all Units allocated to the Lease SUBI Portfolio as of
        June
        30, 1999.

       

      “Insolvency
        Event”
means,
        as to any Person:

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (a)(i)
        a
        court having jurisdiction in the premises shall enter a decree or order for
        relief in respect of such Person in an involuntary case under the Bankruptcy
        Code or any applicable bankruptcy, insolvency or other similar law now or
        hereafter in effect, which decree or order is not stayed, or any other similar
        relief shall be granted under any applicable federal or state law, (ii) an
        involuntary case is commenced against such Person under any applicable
        bankruptcy, insolvency or other similar law now or hereafter in effect which
        remains undismissed, undischarged or unbonded for a period of 60 days or
        (iii)
        such Person shall have a decree or an order for relief entered with respect
        to
        it or commence a voluntary case under the Bankruptcy Code or any applicable
        bankruptcy, insolvency or other similar law now or hereafter in
        effect;

       

      (b)
         such
        Person shall consent to the appointment of a conservator or receiver or
        liquidator in any insolvency, readjustment of debt, marshaling of assets
        and
        liabilities or similar proceedings of or relating to all or substantially
        all of
        its property, or a decree or order of a court or agency or supervisory authority
        having jurisdiction in the premises for the appointment of a conservator
        or
        receiver or liquidator in any insolvency, readjustment of debt, marshaling
        of
        assets and liabilities or similar proceedings, or for the winding-up or
        liquidation of its affairs, shall have been entered against such Person;
        or such
        Person shall admit in writing its inability to pay its debts generally as
        they
        become due, file a petition to take advantage of any applicable insolvency
        or
        reorganization statute, make an assignment for the benefit of its creditors
        or
        voluntarily suspend payment of its obligations.

       

      “Interest
        Period”
means,
        with respect to any Series of Investor Notes, the period specified in the
        related Indenture Supplement.

       

      “Intermediary”
means
        the Person acting in the capacity of Qualified Intermediary pursuant to the
        Master Exchange Agreement, which initially shall be PHH Funding, LLC, a Delaware
        limited liability company.

       

      “Invested
        Amount”
means,
        with respect to each Series of Investor Notes, the amount specified in the
        related Indenture Supplement.

       

      “Invested
        Percentage”
means,
        with respect to any Series of Investor Notes, the percentage specified in
        the
        related Indenture Supplement.

       

      “Investment
        Company Act”
means
        the Investment Company Act of 1940, as amended.

       

      “Investor
        Noteholder”
and
        “Holder” means the Person in whose name an Investor Note is registered in the
        Note Register.

       

      “Investor
        Notes”
means
        any one of the promissory notes (including, without limitation, the Bearer
        Notes, the Registered Notes or the Global Notes) issued by the Issuer, executed
        by the Issuer and authenticated by the Indenture Trustee substantially in
        the
        form (or forms in the case of a Series of Notes with multiple Classes) of
        the
        investor note attached to the related Indenture Supplement.

       

      “Issuer”
means
        Chesapeake Funding LLC, a Delaware limited liability company.

       

      “Issuer
        Accounts”
means
        the Collection Account and each Series Account.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Issuer
        Assets”
means
        all assets of the Issuer, including, among other things, the Loans, the Loan
        Note, the Loan Collateral, the Loan Agreement, the Issuer Accounts, any Hedging
        Instruments, the Origination Trust Guaranty, the Origination Trust Security
        Agreement, the Nominee Lienholder Agreement, the Administration Agreement,
        the
        Management Agreement and all proceeds of the foregoing.

       

      “Issuer
        General Account”
is
        defined in the LLC Agreement.

       

      “Issuer
        Obligations”
means
        all principal and interest, at any time and from time to time, owing by the
        Issuer on the Investor Notes and all costs, fees and expenses payable by,
        or
        obligations of, the Issuer under the Indenture.

       

      “Issuer
        Order”
and
        “Issuer Request” means a written order or request signed in the name of the
        Issuer by any one of its Authorized Officers and delivered to the Indenture
        Trustee.

       

      “Joint
        Collection Account(s)”
is
        defined in Appendix A to the Master Exchange Agreement.

       

      “Joint
        Disbursement Account”
is
        defined in Appendix A to the Master Exchange Agreement.

       

      “JPMorgan
        Chase”
means
        JPMorgan Chase Bank, National Association, a national banking
        association.

       

      “Junior
        Preferred Member”
means
        a
        Person in whose name a Junior Preferred Membership Interest is registered
        in the
        Register.

       

      “Junior
        Preferred Membership Interests”
means
        the Junior Preferred Membership Interests issued pursuant to the LLC
        Agreement.

       

      “Lease”
means
        an Open-End Lease or a Closed-End Lease originated by or on behalf of VMS,
        PHH
        Financial Services or the Origination Trust pursuant to a Master Lease Agreement
        or a Consumer Lease originated by or on behalf of the Origination
        Trust.

       

      “Lease
        Balance”
means,
        as of any date of determination, with respect to (a) any Open-End Lease,
        an
        amount equal to the Net Book Value of the Leased Vehicle subject to such
        Lease
        and (b) any Closed-End Lease, an amount equal to the sum of all remaining
        monthly lease payments (other than payments of finance charges and other
        incidental fees) due in respect of such Leased Vehicle on or after such date;
        provided, however that the Lease Balance of a Charged-Off Lease shall be
        zero.

       

      “Lease
        Balance Decline”
means,
        for any Lease for any Settlement Date, an amount equal to the sum of (a)
        the
        Lease Balance of such Lease as of the last day of the Monthly Period preceding
        the Monthly Period immediately preceding such Settlement Date less the Lease
        Balance of such Lease as of the last day of the Monthly Period immediately
        preceding such Settlement Date plus (b), in the case of a Closed-End Lease,
        the
        Net Book Value of the related Unit Vehicle if such Unit Vehicle shall have
        become a Residual Value Vehicle during the Monthly Period immediately preceding
        such Settlement Date.

       

      “Leased
        Vehicle”
means
        the Vehicle subject to a Lease.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Lease
        Rate Cap”
means
        any interest rate caps that are required to be maintained by the Issuer pursuant
        to the Base Indenture or any Indenture Supplement.

       

      “Lease
        SUBI”
means
        that special unit of beneficial interest in the Origination Trust created
        by the
        Lease SUBI Supplement.

       

      “Lease
        SUBI Certificate”
means
        the certificate of beneficial ownership, representing beneficial ownership
        in
        the Sold Units allocated to the Lease SUBI Portfolio issued pursuant to the
        Lease SUBI Supplement.

       

      “Lease
        SUBI Portfolio”
or
        “1999-1A
        Sold SUBI Portfolio”
means
        the Origination Trust Assets that are from time to time allocated to the
        Lease
        SUBI in accordance with the terms of the Origination Trust
        Documents.

       

      “Lease
        SUBI Supplement”
means
        the Amended and Restated Sold SUBI Supplement 1999-1A to the Origination
        Trust
        Agreement, dated as of the Initial Closing Date, among Holdings, as settlor
        and
        initial beneficiary, VMS, as UTI Trustee and Servicer, and Wilmington Trust
        Company, as Delaware Trustee and SUBI Trustee.

       

      “Lender”
means
        Chesapeake Funding LLC in its capacity as lender under the Loan
        Agreement.

       

      “Lien”
means,
        when used with respect to any Person, any interest in any real or personal
        property, asset or other right held, owned or being purchased or acquired
        by
        such Person which secures payment or performance of any obligation, and shall
        include any mortgage, lien, pledge, encumbrance, charge, retained security
        title
        of a conditional vendor or lessor, or other security interest of any kind,
        whether arising under a security agreement, mortgage, lease, deed of trust,
        chattel mortgage, assignment, pledge, retention or security title, financing
        or
        similar statement, or notice or arising as a matter of law, judicial process
        or
        otherwise.

       

      “LKE
        Program”
is
        defined in Appendix A to the Master Exchange Agreement.

       

      “LLC
        Agreement”
means
        the Limited Liability Agreement of the Issuer, dated as of March 7, 2006,
        as
        amended, modified or supplemented from time to time in accordance with its
        terms.

       

      “Loans”
is
        defined in Section 2.1 of the Loan Agreement.

       

      “Loan
        Agreement”
means
        the Loan Agreement, dated as of the Initial Closing Date, among the Borrower,
        the Origination Trust and the Lender, as amended, modified or supplemented
        from
        time to time in accordance with its terms.

       

      “Loan
        Collateral”
is
        defined in Section 7.1(a) of the Loan Agreement.

       

      “Loan
        Event of Default”
is
        defined in Section 12.1 of the Loan Agreement.

       

      “Loan
        Note”
is
        defined in Section 3.1 of the Loan Agreement.

       

      “Loan
        Principal Amount”
is
        defined in Section 1.2 of the Loan Agreement.

       

      “Lockout
        Period”
means
        the period from and including the date on which each Outstanding Series of
        Investor Notes shall have been declared to be immediately due and payable
        as a
        result of the occurrence of an Event of Default defined in clause (a) or
        (b) of
        Section 9.1 of the Base Indenture to and including the date on which the
        principal of and interest on all Series of Investor Notes shall have been
        paid
        in full.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Luxembourg
        Agent”
is
        defined in Section 2.3(c) of the Base Indenture.

       

      “Majority
        in Interest”
of
        each
        Series of Investor Notes means Noteholders of such Series holding Investor
        Notes
        evidencing more than 50% by outstanding principal amount of each Class of
        Investor Notes of such Series.

       

      “Management
        Agreement”
means
        the Management Agreement, dated as of the Initial Closing Date, by and among
        the
        Managing Agent, the Issuer and the Administrator, as amended, modified or
        supplemented from time to time in accordance with its terms.

       

      “Manager”
is
        defined in the LLC Agreement.

       

      “Managing
        Agent”
means
        Global Securitization Services LLC or a successor Managing Agent under the
        Management Agreement.

       

      “Master
        Exchange Agreement”
means
        the Master Exchange Agreement, dated as of the Initial Closing Date, among
        the
        Intermediary, Holdings and the Origination Trust, as amended, modified or
        supplemented from time to time in accordance with its terms.

       

      “Master
        Lease Agreement”
means
        each master lease agreement between an Obligor and (a) VMS and assigned by
        VMS
        to the Origination Trust or assigned by VMS to SPV and by SPV to the Origination
        Trust, (b) PHH Financial Services and assigned by PHH Financial Services
        to VMS,
        by VMS to SPV and by SPV to the Origination Trust or (c) the Origination
        Trust,
        in each case, in all material respects in a form attached to the Series 1999-1
        SUBI Servicing Supplement.

       

      “Master
        Trust Agreement”
is
        defined in Appendix A to the Master Exchange Agreement.

       

      “Material
        Adverse Effect”
means,
        with respect to any occurrence, event or condition:

       

      (i)
        a
        material adverse effect on the Issuer’s interest in the Collateral, including,
        without limitation, the Loans, the Loan Note, the Loan Collateral or the
        Loan
        Agreement;

       

      (ii)
        a
        material adverse effect on the validity, status, perfection or priority of
        the
        Lien of the Indenture Trustee in the Collateral;

       

      (iii)
        a
        material adverse effect on the business, properties, financial condition
        or
        results of operations of the Issuer or the ability of the Issuer to perform
        its
        obligations under the Indenture; 

       

      (iv)
        a
        material adverse effect on the business, properties, financial condition
        or
        results of operations of PHH and its subsidiaries as a whole; or

       

      (v)
        a
        material adverse effect on the validity or enforceability of the Indenture
        or
        any of the other Transaction Documents.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Maximum
        Invested Amount”
means,
        with respect to each Series of Investor Notes, the amount, if any, specified
        in
        the related Indenture Supplement.

       

      “Member”
means
        a
        Preferred Member or the Common Member.

       

      “Membership
        Interest”
means
        a
        Preferred Membership Interest or the Common Membership Interest.

       

      “Minimum
        Adjusted Aggregate Unit Balance”
means
        the sum of the numerators used on such date to calculate the Invested Percentage
        with respect to Collections for all Series of Outstanding Investor Notes
        on such
        date.

       

      “Monthly
        Period”
means,
        unless otherwise defined in any Indenture Supplement, the period from and
        including a Period End Date (or, in the case of the initial Monthly Period,
        from
        the Initial Cutoff Date) to but excluding the succeeding Period End
        Date.

       

      “Monthly
        Residual Value Gain”
means,
        for any Settlement Date, an amount equal to the excess, if any, of (a) all
        Termination Proceeds for the immediately preceding Monthly Period for all
        Unit
        Vehicles that became Residual Value Vehicles during such Monthly Period and
        all
        prior Monthly Periods over (b) the aggregate Net Book Values of all Unit
        Vehicles that became Residual Value Vehicles during such Monthly Period.
        

       

      “Monthly
        Residual Value Loss”
means,
        for any Monthly Period, an amount equal to the excess, if any, of (a) the
        aggregate Net Book Values of all Unit Vehicles that became Residual Value
        Vehicles during such Monthly Period over (b) all Termination Proceeds for
        such
        Monthly Period for all Unit Vehicles that became Residual Value Vehicles
        during
        such Monthly Period and all prior Monthly Periods. 

       

      “Monthly
        Servicer Advance”
means
        the aggregate amount of funds advanced by the Servicer to Holdings on any
        Settlement Date for deposit in the Collection Account in respect of monthly
        lease payments due but not received during the immediately preceding Monthly
        Period on the Sold Units and in respect of Fleet Receivables due but not
        received during the immediately preceding Monthly Period in accordance with
        the
        Series 1999-1 SUBI Servicing Supplement.

       

      “Monthly
        Servicer Advance Reimbursement Amount”
means,
        for any Settlement Date, the aggregate amount payable to the Servicer in
        reimbursement of amounts previously advanced by the Servicer in respect of
        delinquent monthly lease payments and delinquent Fleet Receivables pursuant
        to
        Section 7.4 of the Series 1999-1 SUBI Servicing Supplement on such Settlement
        Date.

       

      “Monthly
        Settlement Statement”
means,
        with respect to each Series of Outstanding Investor Notes, the settlement
        statement in the form attached to the related Indenture Supplement delivered
        by
        the Issuer to the Indenture Trustee pursuant to Section 4.4(a) of the Base
        Indenture.

       

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

       

      “Net
        Book Value”
means,
        as of any date of determination during an Accrual Period with respect to
        each
        Leased Vehicle, such Leased Vehicle’s Capitalized Cost minus the sum of (a) all
        monthly lease payments billed thereunder (other than payments of finance
        charges
        and other incidental fees) in respect of such Leased Vehicle through such
        date
        and (b) in the case of a Leased Vehicle subject to an Open-End Lease, all
        proceeds from the sale or disposition of such Leased Vehicle received during
        the
        Monthly Period immediately preceding the first day of such Accrual
        Period.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “1999-1B
        Sold SUBI Portfolio”
means
        the Origination Trust Assets that are from time to time allocated to the
        Fleet
        Receivable SUBI in accordance with the terms of the Origination Trust
        Documents.

       

      “Nominee
        Lienholder Agreement”
means
        the Nominee Lienholder Agreement, dated as of the Initial Closing Date, between
        SPV and the Issuer pursuant to which SPV agrees to act as the nominee lienholder
        of the Issuer in respect of those Vehicles the Certificates of Title for
        which
        note SPV as the lienholder, as amended, supplemented and modified from time
        to
        time.

       

      “Non-Qualified
        Funds”
is
        defined in Appendix A to the Master Exchange Agreement.

       

      “Note
        Rate”
means,
        with respect to any Series of Investor Notes, the annual rate at which interest
        accrues on the Investor Notes of such Series of Investor Notes (or formula
        on
        the basis of which such rate shall be determined) as stated in the related
        Indenture Supplement.

       

      “Note
        Register”
means
        the register maintained pursuant to Section 2.4(a) of the Base Indenture,
        providing for the registration of the Investor Notes and transfers and exchanges
        thereof.

       

      “Obligor”
means,
        with respect to any Lease or Fleet Receivable, the Person or Persons obligated
        to make payment with respect to such Lease or Fleet Receivable, including
        any
        guarantor thereof.

       

      “Officer’s
        Certificate”
means
        a
        certificate signed by an Authorized Officer of the Issuer, SPV, Holdings,
        the
        Origination Trust, the Servicer or the Administrator, as the case may
        be.

       

      “Old
        Contribution Agreement”
means
        the Contribution Agreement, dated as of June 30, 1999, between SPV and the
        Origination Trust, as amended, modified or supplemented from time to time
        in
        accordance with its terms.

       

      “Old
        Receivables Purchase Agreement”
means
        the Receivables Purchase Agreement, dated as of June 30, 1999, by and between
        SPV and VMS, as amended, modified or supplemented from time to time in
        accordance with its terms.

       

      “Open-End
        Lease”
means
        a
        lease obligation in respect of a single vehicle which may arise pursuant
        to a
        master lease agreement providing for the lease of a fleet of vehicles or
        pursuant to a lease agreement providing for the lease of a single vehicle
        that,
        in each case, obligates the lessee thereunder to pay the lessor at lease
        termination any deficit between the sales proceeds from the sale of the vehicle
        subject thereto and the book value thereof (other than the portion of any
        deficit resulting from the sales proceeds being less than 16% of the fair
        market
        value thereof determined in accordance with such lease).

       

      “Opinion
        of Counsel”
means
        a
        written opinion from legal counsel who is acceptable to the Indenture Trustee.
        The counsel may be an employee of or counsel to the Issuer, Holdings, VMS,
        PHH,
        the Origination Trust, the Administrator or the Servicer, as the case may
        be.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Origination
        Trust”
means
        D.L. Peterson Trust, a statutory business trust organized under the laws
        of the
        State of Delaware.

       

      “Origination
        Trust Agreement”
means
        the Second Amended and Restated Origination Trust Agreement, dated as of
        the
        Initial Closing Date, among Holdings, as successor settlor and initial
        beneficiary, SPV, as existing settlor and predecessor beneficiary, VMS, as
        UTI
        Trustee and Servicer, and Wilmington Trust Company, as Delaware Trustee,
        as
        amended, supplemented and modified by the Lease SUBI Supplement and the Fleet
        Receivable SUBI Supplement and as the same may be further amended, supplemented
        or modified from time to time.

       

      “Origination
        Trust Assets”
means
        all assets, at any time, owned by the Origination Trust at such
        time.

       

      “Origination
        Trust Documents”
means
        the Origination Trust Agreement, including the Lease SUBI Supplement and
        the
        Fleet Receivable SUBI Supplement, the Origination Trust Servicing Agreement,
        including the Series 1999-1 SUBI Servicing Supplement, the PHH Guarantee,
        the
        Custodian Agreement, the SUBI Certificates, the Old Receivables Purchase
        Agreement, the Receivables Purchase Agreement, the Asset Purchase Agreement,
        the
        Old Contribution Agreement, the Contribution Agreement, the Additional Equipment
        Assets Sale Agreement and the Additional Equipment Assets Contribution
        Agreement.

       

      “Origination
        Trust Guaranty”
means
        the Guaranty, dated as of the Initial Closing Date, from the Origination
        Trust
        to the Issuer pursuant to which the Origination Trust has guaranteed the
        obligations of Holdings under the Loan Agreement and the Loan Note, as the
        same
        may be amended, supplemented or modified from time to time.

       

      “Origination
        Trust Security Agreement”
means
        the Security Agreement, dated as of the Initial Closing Date, between the
        Origination Trust and the Issuer pursuant to which the obligations of the
        Origination Trust to the Issuer under the Origination Trust Guaranty are
        secured, as amended, supplemented or modified from time to time.

       

      “Origination
        Trust Servicing Agreement”
means
        the Amended and Restated Servicing Agreement, dated as of the Initial Closing
        Date, among the Origination Trust, Holdings and the Servicer, as amended,
        supplemented and modified by the Series 1999-1 SUBI Servicing Supplement
        and as
        the same may be further amended, supplemented or modified from time to
        time.

       

      “Outstanding”
has
        the
        meaning, with respect to any Series of Investor Notes, set forth in the related
        Indenture Supplement.

       

      “Overconcentration
        Amount”
means,
        as of any date of determination during an Accrual Period, an amount equal
        to the
        greatest of (a) (i) the aggregate Lease Balance of the Eligible Leases to
        which
        the Obligors having the five largest aggregate Lease Balances of Eligible
        Leases
        allocated to the Lease SUBI Portfolio are a party as of the last day of the
        Monthly Period immediately preceding the first day of such Accrual Period
        over
        (ii) an amount equal to the Specified Top Five Obligors Maximum Percentage
        as of
        such date of the Aggregate Lease Balance as of such date, (b) (i) the aggregate
        Lease Balance of the Eligible Leases to which the Obligors having the ten
        largest aggregate Lease Balances of Eligible Leases allocated to the Lease
        SUBI
        Portfolio are a party as of the last day of the Monthly Period immediately
        preceding the first day of such Accrual Period over (ii) an amount equal
        to the
        Specified Top Ten Obligors Maximum Percentage as of such date of the Aggregate
        Lease Balance as of such date and (c) the excess, if any, of (i) the aggregate
        Lease Balance of the Eligible Leases to which the Obligor having the largest
        aggregate Lease Balance of Eligible Leases allocated to the Lease SUBI Portfolio
        is a party as of the last day of the Monthly Period immediately preceding
        the
        first day of such Accrual Period over (ii) an amount equal to the Specified
        Top
        Obligor Maximum Percentage as of such date of the Aggregate Lease Balance
        as of
        such date; provided, however that if the long-term debt obligations of such
        Obligor are not rated at least “Baa3” by Moody’s as of such date, the amount in
        this clause (ii) shall equal the Specified Top Obligor Maximum Percentage
        as of
        that date minus 1% of the Aggregate Lease Balance as of such date.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Overconcentration
        Option”
means
        Overconcentration Option 1, Overconcentration Option 2 or Overconcentration
        Option 3.

       

      “Overconcentration
        Option 1”
means
        the percentages used in clauses (a)(ii), (b)(ii) and (c)(ii) of the definition
        of the Overconcentration Amount are 15.00%, 25.00% and 4.00%,
        respectively.

       

      “Overconcentration
        Option 2”
means
        the percentages used in clauses (a)(ii), (b)(ii) and (c)(ii) of the definition
        of the Overconcentration Amount are 17.50%, 28.00% and 4.50%,
        respectively.

       

      “Overconcentration
        Option 3”
means
        the percentages used in clauses (a)(ii), (b)(ii) and (c)(ii) of the definition
        of the Overconcentration Amount are 18.75%, 30.00% and 4.75%, respectively.
        

       

      “Paid-In
        Advance Loss Ratio”
means,
        for any specified Settlement Date, the quotient, expressed as a percentage,
        of
        (a) the excess, if any, of (i) the aggregate Cost of all Unit Paid-In Advance
        Vehicles that became Rejected Paid-In Advance Vehicles during the immediately
        preceding Monthly Period over (ii) all Paid-In Advance Proceeds received
        by the
        Servicer during the preceding Monthly Period for all Unit Paid-In Advance
        Vehicles that became Rejected Paid-In Advance Vehicles during such Monthly
        Period and all prior Monthly Periods divided by (b) the aggregate Cost of
        all
        Unit Paid-In Advance Vehicles that became Rejected Paid-In Advance Vehicles
        during the immediately preceding Monthly Period.

       

      “Paid-In
        Advance Proceeds”
means
        for any Rejected Paid-In Advance Vehicle the sum of all amounts received
        by the
        Servicer upon, after or in connection with the sale or other disposition
        of such
        Rejected Paid-In Advance Vehicle, net of any and all out-of-pocket costs
        and
        expenses incurred by the Servicer in connection with such sale or other
        disposition, and any and all amounts received from the related Obligor in
        connection with such Rejected Paid-In Advance Vehicle.

       

      “Paid-In
        Advance Vehicle”
means
        a
        Vehicle acquired at the request of an Obligor who is either a party to a
        Master
        Lease Agreement or who has agreed to be bound by a Master Lease Agreement
        but
        not yet accepted by such Obligor.

       

      “Parent
        Downgrade Event”
is
        defined in Appendix A to the Master Exchange Agreement.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Paying
        Agent”
means
        any paying agent appointed pursuant to Section 2.6 of the Base
        Indenture.

       

      “Payment
        Date”
means,
        with respect to each Series of Investor Notes, the dates set forth in the
        related Indenture Supplement.

       

      “PBGC”
means
        the Pension Benefit Guaranty Corporation established pursuant to Subtitle
        A of
        Title IV of ERISA.

       

      “Pension
        Plan”
means
        any “employee pension benefit plan”, as such term is defined in ERISA, which is
        subject to Title IV of ERISA (other than a “multiemployer plan”, as defined in
        Section 4001 of ERISA) and to which any company in the Controlled Group has
        liability, including any liability by reason of having been a substantial
        employer within the meaning of Section 4063 of ERISA for any time within
        the
        preceding five years or by reason of being deemed to be a contributing sponsor
        under Section 4069 of ERISA.

       

      “Period
        End Date”
means
        each date set forth in Schedule X to the Series 1999-1 SUBI Servicing
        Supplement, as such schedule is amended and supplemented from time to time
        in
        accordance with the terms of the Series 1999-1 SUBI Servicing
        Supplement.

       

      “Permitted
        Investments”
means
        negotiable instruments or securities, 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
        (excluding any security with the “r” symbol attached to its
        rating):

       

      (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
        or higher 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 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 not lower than
“AA”;

       

      (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
        Moody’s of “P-1” and Standard & Poor’s of “A-1+”; 

       

      (iv)
        bankers’ acceptances issued by any depositary institution or trust company
        described in clause (ii) above; 

       

      (v)
        investments in money market funds rated “AAAm” by Standard & Poor’s and
“Aaa” by Moody’s or otherwise approved in writing by the Rating Agencies;

       

      (vi)
        Eurodollar time deposits having a credit rating from Moody’s of “P-1” and
        Standard & Poor’s of “A-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 ratings with respect to any Series of Investor Notes.

       

      “Permitted
        Liens”
means
        (i) Liens for current taxes not delinquent or for taxes being contested in
        good
        faith and by appropriate proceedings, and with respect to which adequate
        reserves have been established, and are being maintained, in accordance with
        GAAP, (ii) mechanics’, materialmen’s, landlords’, warehousemen’s and carrier’s
        Liens, and other Liens imposed by law, securing obligations arising in the
        ordinary course of business that are not more than thirty days past due or
        are
        being contested in good faith and by appropriate proceedings and with respect
        to
        which adequate reserves have been established, and are being maintained,
        in
        accordance with GAAP, (iii) Liens in favor of SPV or the Issuer in the Leased
        Vehicles, (iv) Liens in favor of the Issuer pursuant to the Loan Agreement
        or
        the Origination Trust Security Agreement, (v) Liens in favor of the Indenture
        Trustee pursuant to the Indenture, and (vi) Liens in favor of an Enhancement
        Provider, provided, however, that such Liens are subordinate to the Liens
        in
        favor of the Indenture Trustee and have been consented to by the Indenture
        Trustee.

       

      “Person”
means
        any natural person, corporation, business trust, joint venture, association,
        limited liability company, partnership, joint stock company, corporation,
        trust,
        unincorporated organization or Government Authority.

       

      “PHH”
means
        PHH Corporation, a Maryland corporation.

       

      “PHH
        Consumer Lease”
means
        PHH PersonaLease Corporation, a Maryland corporation.

       

      “PHH
        Financial Services”
means
        PHH Financial Services Corporation, a Maryland corporation.

       

      “PHH
        Guarantee”
means
        the Guarantee, dated October 25, 2001, from PHH pursuant to which PHH has
        guaranteed certain of VMS’ obligations under the Origination Trust Servicing
        Agreement, as the same may be amended, supplemented or modified from time
        to
        time.

       

      “PHH
        Sub 1”
means
        PHH Sub 1 Inc., a Delaware corporation.

       

      “PHH
        Sub 2”
means
        PHH Sub 2 Inc., a Delaware corporation.

       

      “PHH
        Treasury Note Rate”
means,
        on any day between the 16th day of the month through the 15th day of the
        following month, the interest rate that is quoted in the Federal Reserve
        Statistical Release (H.15 Report) for two year treasury constant maturities
        on
        the fifteenth day of that month, or the first business day thereafter if
        the
        fifteenth day of the month falls on a non-business day.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Policies”
means
        the standards, policies and procedures, including but not limited to the
        credit
        and residual accrual policies applied by the Servicer in originating Leases
        and
        those applied by the Servicer in its collection and repossession
        activities.

       

      “Pool
        Factor”
means,
        except with respect to any Series of Notes issued in more than one Class,
        a
        number carried out to seven decimals representing the ratio of the applicable
        Invested Amount as of such Record Date (determined after taking into account
        any
        reduction in the Invested Amount which will occur on the following Payment
        Date)
        to the applicable Initial Invested Amount, and with respect to a Series of
        Notes
        having more than one Class, as specified in the Indenture Supplement relating
        to
        such Series.

       

      “Potential
        Amortization Event”
means
        any occurrence or event which, with the giving of notice, the passage of
        time or
        both, would constitute an Amortization Event.

       

      “Potential
        Loan Event of Default”
means
        any occurrence or event which, with the giving of notice, the passage of
        time or
        both, would constitute a Loan Event of Default.

       

      “Preferred
        Member”
means
        a
        Person in whose name a Junior Preferred Membership Interest or a Senior
        Preferred Membership Interest is registered in the Register.

       

      “Preferred
        Membership Interests”
means
        the Junior Preferred Membership Interests or the Senior Preferred Membership
        Interests.

       

      “Principal
        Payment Amount”
means,
        for any Settlement Date, the sum of (a) the Lease Balance Declines for each
        Unit
        Lease for such Settlement Date, (b) the aggregate Cost of all Eligible Paid-In
        Advance Vehicles that became Rejected Paid-In Advance Vehicles during the
        immediately preceding Monthly Period and (c) the Unit Repurchase Payments
        for
        such Settlement Date.

       

      “Principal
        Terms”
is
        defined in Section 2.2 of the Base Indenture.

       

      “Proceeding”
means
        any suit in equity, action or law or other judicial or administrative
        proceeding.

       

      “Qualified
        Institution”
means
        a
        depository institution organized under the laws of the United States of America
        or any State thereof or incorporated under the laws of a foreign jurisdiction
        with a branch or agency located in the United States of America or any State
        thereof and subject to supervision and examination by federal or state banking
        authorities which at all times has the Required Rating and, in the case of
        any
        such institution organized under the laws of the United States of America,
        whose
        deposits are insured by the FDIC.

       

      “Qualified
        Trust Institution”
means
        an institution organized under the laws of the United States of America or
        any
        State thereof or incorporated under the laws of a foreign jurisdiction with
        a
        branch or agency located in the United States of America or any State thereof
        and subject to supervision and examination by federal or state banking
        authorities which at all times (i) is authorized under such laws to act as
        a
        trustee or in any other fiduciary capacity, (ii) has not less than one billion
        dollars in assets under fiduciary management, and (iii) has a long term deposits
        rating of not less than “BBB-” by Standard & Poor’s and Baa3 by
        Moody’s.

       

      “Quarterly
        Compliance Certificate”
is
        defined in Section 4.1(a) of the Base Indenture.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Rating
        Agency”
means,
        with respect to each Series of Notes, the rating agency or agencies, if any,
        specified in the related Indenture Supplement.

       

      “Rating
        Agency Condition”
means,
        the notification in writing by the Rating Agencies that a proposed action
        will
        not result in a reduction or withdrawal by each such Rating Agency of the
        rating
        or credit risk assessment of any Class of any Series of Outstanding Investor
        Notes rated or evaluated by such Rating Agency or the rating or credit risk
        assessment of any series of Preferred Membership Interests rated or evaluated
        by
        such Rating Agency.

       

      “Receivables
        Purchase Agreement”
means
        the Amended and Restated Receivables Purchase Agreement, dated as of the
        Initial
        Closing Date, by and between Holdings and VMS, as amended, modified or
        supplemented from time to time in accordance with its terms.

       

      “Receivables
        Purchase Termination Event”
is
        defined in the Receivables Purchase Agreement.

       

      “Record
        Date”
means,
        with respect to each Series of Notes, the dates specified in the related
        Indenture Supplement.

       

      “Recoveries”
means
        any amounts received by the Servicer with respect to Charged-Off Leases,
        including Collections received from Obligors and liquidation proceeds of
        the
        related Leased Vehicles, net of (i) any applicable rental receipts tax, sales
        and use tax, personal property tax, ad valorem tax or any other tax or any
        governmental fees or charges, (ii) any and all out-of-pocket costs and expenses
        incurred by the Servicer in connection with such recovery and (iii) any amounts
        remitted to the related Obligor as required by applicable law or the related
        Lease.

       

      “Register”
means
        the register mentioned in Section 12.3 of the LLC Agreement.

       

      “Registered
        Notes”
is
        defined in Section 2.1 of the Base Indenture.

       

      “Rejected
        Paid-In Advance Vehicles”
means,
        for any Monthly Period, all Unit Paid-In Advance Vehicles which were sold
        or
        otherwise disposed of after rejection thereof by the related Obligor during
        such
        Monthly Period.

       

      “Related
        Rights”
means,
        with respect to any Unit, all Origination Trust Assets to the extent such
        assets
        are associated with such Unit.

       

      “Relinquished
        Property Proceeds”
is
        defined in Appendix A to the Master Exchange Agreement.

       

      “Relinquished
        Vehicle”
means
        a
        Vehicle that is “Relinquished Property” under and as defined in Appendix A to
        the Master Exchange Agreement.

       

      “Replacement
        Property”
is
        defined in Appendix A to the Master Exchange Agreement.

       

      “Repurchase
        Amount”
means,
        with respect to any Series of Investor Notes, the amount specified in the
        related Indenture Supplement.

       

      “Required
        Aggregate Asset Amount”
means
        the sum of the Required Asset Amounts with respect to all Series of Outstanding
        Investor Notes.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Required
        Asset Amount”
means,
        with respect to any Series of Investor Notes, the amount specified in the
        related Indenture Supplement.

       

      “Required
        Overcollateralization Amount”
means,
        with respect to any Series of Investor Notes, the amount specified in the
        related Indenture Supplement.

       

      “Required
        Rating”
means
        a
        short-term certificate of deposit rating from Moody’s of P-1 and from Standard
& Poor’s of “A-1” and a long-term unsecured debt rating of not less than Aa3
        by Moody’s and “AA-” by Standard & Poor’s.

       

      “Requirements
        of Law”
means,
        with respect to any Person or any of its property, the certificate of
        incorporation or articles of association and by-laws or other organizational
        or
        governing documents of such Person or any of its property, and any law, treaty,
        rule or regulation, or determination of any arbitrator or Governmental
        Authority, in each case applicable to or binding upon such Person or any
        of its
        property or to which such Person or any of its property is subject, whether
        Federal, state or local (including, without limitation, usury laws, the Federal
        Truth in Lending Act and retail installment sales acts).

       

      “Reservoir
        Account”
is
        defined in Appendix A to the Master Exchange Agreement.

       

      “Residual
        Value Loss”
means,
        for any Unit Vehicle which became a Residual Value Vehicle during a Monthly
        Period, an amount equal to (a) the Stated Residual Value of such Unit Vehicle
        minus (b) all Termination Proceeds with respect to such Unit Vehicle for
        such
        Monthly Period.

       

      “Residual
        Value Loss Ratio”
means,
        for any specified Settlement Date, the quotient, expressed as a percentage,
        of
        (a) the sum of the Residual Value Losses for all Unit Vehicles that became
        Residual Value Vehicles during the preceding Monthly Period minus all
        Termination Proceeds included in clauses (i) and (ii) of the definition thereof
        for the preceding Monthly Period for all Unit Vehicles that became Residual
        Value Vehicles during prior Monthly Periods divided by (b) the sum of the
        Stated
        Residual Values for all Unit Vehicles that became Residual Value Vehicles
        during
        the preceding Monthly Period.

       

      “Residual
        Value Vehicles”
means,
        for any Monthly Period, all Unit Vehicles subject to Closed-End Leases (other
        than Unit Vehicles subject to Charged-off Leases) which were sold or otherwise
        disposed of after termination or expiration of the related Closed-End Lease
        during such Monthly Period.

       

      “Responsible
        Officer”
means,
        with respect to the Indenture Trustee, any officer within the Corporate Trust
        Office, including any Assistant Vice President, Vice President, any Secretary
        or
        Assistant Secretary or any other officer of the Indenture Trustee customarily
        performing functions similar to those performed by any Person who at the
        time
        shall be an above designated officer and having direct responsibility for
        administration of the Indenture and the applicable Series Supplement and
        also
        any particular officer to whom any corporate trust matter is referred because
        of
        such officer’s knowledge of and familiarity with the particular subject, in each
        case who, at the time shall be an above-designated officer and shall have
        direct
        responsibility for administration of the Indenture and the applicable Series
        Supplement. 

       

      “Revolving
        Period”
means,
        with respect to any Series of Investor Notes, the period specified in the
        related Indenture Supplement.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

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

       

      “Securities
        Act”
means
        the Securities Act of 1933, as amended.

       

      “Securitization”
is
        defined in the Origination Trust Agreement.

       

      “Senior
        Preferred Member”
means
        a
        Person in whose name a Senior Preferred Membership Interest is registered
        in the
        Register.

       

      “Senior
        Preferred Membership Interests”
means
        the Senior Preferred Membership Interests issued pursuant to the LLC
        Agreement.

       

      “Series”
means
        any Series of Investor Notes, which may include within any such Series a
        Class
        or Classes of Investor Notes subordinate to another such Class or Classes
        of
        Investor Notes.

       

      “Series
        Account”
means
        any account or accounts established pursuant to an Indenture Supplement for
        the
        benefit of a Series of Notes.

       

      “Series
        Administrator Fee,”
with
        respect to any Series of Notes, that portion of the Administrator Fee payable
        from Collections allocable to such Series pursuant to the related Indenture
        Supplement.

       

      “Series
        Closing Date”
means,
        with respect to any Series of Investor Notes, the date of issuance of such
        Series of Investor Notes, as specified in the related Indenture
        Supplement.

       

      “Series
        Gain on Sale Account Percentage”
means,
        with respect to any Series of Investor Notes, the percentage specified in
        the
        related Indenture Supplement.

       

      “Series
        1999-1 SUBI Servicing Supplement”
means
        the Amended and Restated Sold SUBI Supplement 1999-1 to the Servicing
        Agreement, dated as of the Initial Closing Date, among the Origination Trust,
        Wilmington Trust Company, as SUBI Trustee, Holdings and the Servicer, as
        amended
        from time to time.

       

      “Series
        Note Termination Date”
means,
        with respect to any Series of Investor Notes, the date stated in the related
        Indenture Supplement.

       

      “Series
        Reserve Account”
means
        each account designated as a “Series [ ] Reserve Account in an Indenture
        Supplement with respect to an Outstanding Series of Investor Notes.

       

      “Series
        Servicing Fee,”
with
        respect to any Series of Notes, that portion of the Servicing Fee payable
        from
        Collections allocable to such Series pursuant to the related Indenture
        Supplement. 

       

      “Series
        Servicing Fee Percentage”
means,
        with respect to any Series of Notes, the amount specified in the related
        Indenture Supplement.

       

      “Series
        Termination Date”
means,
        with respect to any Series of Investor Notes, the date stated in the related
        Indenture Supplement as the termination date.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Servicer”
means
        VMS in its capacity as servicer under the Origination Trust Servicing
        Agreement.

       

      “Servicer
        Termination Event”
is
        defined in the Origination Trust Servicing Agreement.

       

      “Servicing
        Fee”
is
        defined in the Origination Trust Servicing Agreement.

       

      “Settlement
        Date”
means
        the 7th day of each month, or if such date is not a Business Day, the next
        succeeding Business Day, commencing April 7, 2006.

       

      “Settlement
        Statement”
is
        defined in Section 4.1 of the Base Indenture.

       

      “Sold
        Units”
means,
        collectively, the Initial Units and the Additional Units. 

       

      “Special
        Purpose Entity”
is
        defined in the Origination Trust Agreement.

       

      “Specified
        Top Five Obligors Maximum Percentage”
means
        (a) 15.00% on any date during any period when Overconcentration Option 1
        is in
        effect, (b) 17.50% on any date during any period when Overconcentration Option
        2
        is in effect or (c) 18.75% on any date during any period when Overconcentration
        Option 3 is in effect. 

       

      “Specified
        Top Obligor Maximum Percentage”
means
        (a) 4.00% on any date during any period when Overconcentration Option 1 is
        in
        effect, (b) 4.50% on any date during any period when Overconcentration Option
        2
        is in effect or (c) 4.75% on any date during any period when Overconcentration
        Option 3 is in effect. 

       

      “Specified
        Top Ten Obligors Maximum Percentage”
means
        (a) 25.00% on any date during any period when Overconcentration Option 1
        is in
        effect, (b) 28.00% on any date during any period when Overconcentration Option
        2
        is in effect or (c) 30.00% on any date during any period when Overconcentration
        Option 3 is in effect.

       

      “SPV”
means
        Raven Funding LLC, a Delaware limited liability company. 

       

      “Stated
        Residual Value”
means,
        for any Unit Vehicle subject to a Closed-End Lease, the lesser of (a) the
        stated
        residual value of such Unit Vehicle established at the time of origination
        of
        such Closed-End Lease in accordance with the Policies and (b) the Net Book
        Value
        of such Unit Vehicle as of such day.

       

      “SUBI
        Assets”
is
        defined in the Origination Trust Agreement.

       

      “SUBIs”
means
        the Fleet Receivable SUBI and the Lease SUBI.

       

      “SUBI
        Certificates”
means
        the Fleet Receivable SUBI Certificate and the Lease SUBI
        Certificate.

       

      “SUBI
        Portfolio”
is
        defined in the Origination Trust Agreement.

       

      “Subsidiary”
means,
        with respect to any Person (herein referred to as the “parent”), any
        corporation, partnership, association or other business entity (a) of which
        securities or other ownership interests representing more than 50% of the
        equity
        or more than 50% of the ordinary voting power or more than 50% of the general
        partnership interests are, at the time any determination is being made, owned,
        controlled or held by the parent or (b) that is, at the time any determination
        is being made, otherwise controlled, by the parent or one or more subsidiaries
        of the parent or by the parent and one or more subsidiaries of the
        parent.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Supplement”
means
        a
        supplement to the Base Indenture complying (to the extent applicable) with
        the
        terms of Article
        12
        of the
        Base Indenture.

       

      “Tax
        Opinion”
means
        an opinion of counsel to be delivered in connection with the issuance of
        a new
        Series of Investor Notes to the effect that, for United States federal income
        tax purposes, (i) the issuance of such new Series of Notes will not affect
        adversely the United States federal income tax characterization of any Series
        of
        Outstanding Investor Notes or Class thereof that was (based upon an opinion
        of
        counsel) characterized as debt at the time of their issuance and (ii) the
        Issuer
        will not be classified as an association or as a publicly traded partnership
        taxable as a corporation for United States federal income tax
        purposes.

       

      “Termination
        Date”
is
        defined in Appendix A to the Master Exchange Agreement.

       

      “Termination
        Event”
means
        any of a Receivables Purchase Termination Event or a Loan Event of
        Default.

       

      “Termination
        Proceeds”
means
        for any Residual Value Vehicle for any Monthly Period (a) all amounts received
        by the Servicer during such Monthly Period upon, after or in connection with
        the
        termination of the related Lease including, without limitation, (i) sales
        proceeds with respect to such Residual Value Vehicle, net of any and all
        out-of-pocket costs and expenses incurred by the Servicer in connection with
        such sale or other disposition and any amounts remitted to the related Obligor
        as required by applicable law or the related Lease and (ii) any and all
        insurance proceeds received in connection with the occurrence of a casualty
        event in respect of such Residual Value Vehicle and (b) any and all amounts
        billed to the related Obligor in connection with the termination of such
        Lease,
        including any Incidental Lease Termination Payments.

       

      “Three
        Month Average Charge-Off Ratio”
means,
        with respect to any Settlement Date, the average of the Charge-Off Ratios
        for
        such Settlement Date and the two immediately preceding Settlement
        Dates.

       

      “Three
        Month Average Delinquency Ratio”
means,
        with respect to any Settlement Date, the average of the Delinquency Ratios
        for
        such Settlement Date and the two immediately preceding Settlement
        Dates.

       

      “Three
        Month Average Paid-In Advance Loss Ratio”
means,
        with respect to any Settlement Date, the average of the Paid-In Advance Loss
        Ratios for such Settlement Date and the two immediately preceding Settlement
        Dates.

       

      “Three
        Month Average Residual Value Loss Ratio”
means,
        with respect to any Settlement Date, the average of the Residual Value Loss
        Ratios for such Settlement Date and the two immediately preceding Settlement
        Dates.

       

      “TIA”
means
        the Trust Indenture Act of 1939 as in force on the date hereof, unless otherwise
        specifically provided.

       

      “Transaction
        Documents”
means,
        collectively, the Indenture, the Investor Notes, any agreements relating
        to the
        issuance or the purchase of any of the Investor Notes, any agreements relating
        to any Credit Enhancement for any Investor Notes, the LLC Agreement, the
        Loan
        Agreement, the Loan Note, the Origination Trust Guaranty, the Origination
        Trust
        Security Agreement, the Nominee Lienholder Agreement, the Administration
        Agreement, the Assignment and Assumption Agreement, the Management Agreement,
        the Origination Trust Documents, the Master Exchange Agreement, the Master
        Trust
        Agreement, the Collection Account Control Agreement and the Gain on Sale
        Account
        Control Agreement.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Transfer
        Agent and Registrar”
is
        defined in Section 2.4 of the Base Indenture.

       

      “Transfer
        Date”
means,
        unless otherwise specified in the related Indenture Supplement, with respect
        to
        any Series of Notes, the Business Day immediately prior to each Payment
        Date.

       

      “Twelve
        Month Average Charge-Off Ratio”
means,
        with respect to any Settlement Date, the average of the Charge-Off Ratios
        for
        such Settlement Date and the eleven immediately preceding Settlement
        Dates.

       

      “Twelve
        Month Average Paid-In Advance Loss Ratio”
means,
        with respect to any Settlement Date, the average of the Paid-In Advance Loss
        Ratios for such Settlement Date and the eleven immediately preceding Settlement
        Dates.

       

      “Twelve
        Month Average Residual Value Loss Ratio”
means,
        with respect to any Settlement Date, the average of the Residual Value Loss
        Ratios for such Settlement Date and the eleven immediately preceding Settlement
        Dates.

       

      “UCC”
means
        the Uniform Commercial Code as in effect from time to time in the applicable
        jurisdiction.

       

      “Unit”
means
        a
        Vehicle, the related Lease and the Related Rights associated therewith or
        a
        Paid-In Advance Vehicle and the Related Rights associated
        therewith.

       

      “Unit
        Leases”
means
        the Leases allocated to the Lease SUBI Portfolio.

       

      “Unit
        Paid-In Advance Vehicles”
means
        the Paid-In Advance Vehicles allocated to the Lease SUBI Portfolio.

       

      “Unit
        Repurchase Payments”
means,
        for any Settlement Date, the aggregate amount payable by the Servicer pursuant
        to Section 7.15 of the Series 1999-1 SUBI Servicing Supplement on such
        Settlement Date.

       

      “Unit
        Vehicle”
means
        the Leased Vehicles and Paid-In Advance Vehicles allocated to the Lease SUBI
        Portfolio.

       

      “United
        States”
or
        “U.S.”
means
        the United States of America, its fifty States and the District of
        Columbia.

       

      “U.S.
        Government Obligations”
means
        direct obligations of the United States of America, or any agency or
        instrumentality thereof for the payment of which the full faith and credit
        of
        the United States of America is pledged as to full and timely payment of
        such
        obligations.

       

      “UTI”
is
        defined in the Origination Trust Agreement.

       

      “UTI
        Assets”
is
        defined in the Origination Trust Agreement.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Vehicle”
means
        an automobile, a truck, a truck chassis, a truck body, a truck tractor, a
        truck
        trailer or another type of motorized vehicle or equipment, together with
        any and
        all accessories, additions and parts from time to time in or to any of the
        foregoing and all accessions thereto.

       

      “VMS”
means
        PHH Vehicle Management Services LLC or any predecessor in interest thereto
        (including, without limitation, PHH Fleet America Corporation and Peterson,
        Howell & Heather, Inc.).

       

      “WBNA”
means
        Wachovia Bank, National Association.

       

      “written”
or
        “in
        writing”
means
        any form of written communication, including, without limitation, by means
        of
        telex, telecopier device, telegraph or cable.Exhibit
      10.2

    
 

    CHESAPEAKE
      FUNDING LLC,

    as
      Issuer

     

    PHH
      VEHICLE MANAGEMENT SERVICES, LLC,

    as
      Administrator

     

    JPMORGAN
      CHASE BANK, NATIONAL ASSOCIATION,

    as
      Administrative Agent,

     

    CERTAIN
      CP CONDUIT PURCHASERS,

     

    CERTAIN
      APA BANKS,

     

    CERTAIN
      FUNDING AGENTS

     

    and

     

    JPMORGAN
      CHASE BANK, NATIONAL ASSOCIATION,

    as
      Indenture Trustee

     

     

    SERIES
      2006-1 INDENTURE SUPPLEMENT

    dated
      as
      of March 7, 2006

     

    to

     

    BASE
      INDENTURE

    dated
      as
      of March 7, 2006

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

     

    
      	 	Page
	 	 
	
              ARTICLE
                1 DEFINITIONS

            	
              2

            
	
              ARTICLE
                2 PURCHASE AND SALE OF SERIES 2006-1 INVESTOR NOTES; INCREASES AND
                DECREASES OF SERIES 2006-1 INVESTED AMOUNT

            	
              27

            
	
              SECTION
                2.1. Purchases of the Series 2006-1 Investor Notes

            	
              27

            
	
              SECTION
                2.2. Delivery.

            	
              27

            
	
              SECTION
                2.3. Procedure for Initial Issuance and for Increasing the Series
                2006-1
                Invested Amount.

            	
              28

            
	
              SECTION
                2.4. Sales by CP Conduit Purchasers of Series 2006-1 Investor Notes
                to APA
                Banks

            	
              30

            
	
              SECTION
                2.5. Procedure for Decreasing the Series 2006-1 Invested Amount;
                Optional
                Termination.

            	
              30

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

            	
              31

            
	
              SECTION
                2.7. Interest; Fees.

            	
              32

            
	
              SECTION
                2.8. Indemnification by the Issuer and the Administrator

            	
              34

            
	
              SECTION
                2.9. Funding Agents

            	
              35

            
	
              ARTICLE
                3 ARTICLE 5 OF THE BASE INDENTURE

            	
              35

            
	
              Section
                5A.1 Establishment of Series 2006-1 Subaccounts

            	
              35

            
	
              Section
                5A.2 Allocations with Respect to the Series 2006-1 Investor
                Notes

            	
              37

            
	
              Section
                5A.3. Determination of Interest

            	
              39

            
	
              Section
                5A.4. Monthly Application of Collections

            	
              40

            
	
              Section
                5A.5 Payment of Monthly Interest Payment, Fees and
                Expenses

            	
              42

            
	
              Section
                5A.6. Determination of Monthly Principal Payment

            	
              44

            
	
              Section
                5A.7 Payment of Principal

            	
              44

            

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

    
      	
              Section
                5A.8 The Administrator’s Failure to Instruct the Indenture Trustee to Make
                a Deposit or Payment

            	
              45

            
	
              Section
                5A.9 Series 2006-1 Reserve Account

            	
              46

            
	
              Section
                5A.10 Series 2006-1 Yield Supplement Account

            	
              47

            
	
              Section
                5A.11 Series 2006-1 Distribution Account

            	
              49

            
	
              Section
                5A.12 Lease Rate Caps

            	
              49

            
	
              Section
                5A.13 Indenture Trustee As Securities Intermediary

            	
              51

            
	
              ARTICLE
                4 AMORTIZATION EVENTS

            	
              52

            
	
              ARTICLE
                5 OPTIONAL PREPAYMENT

            	
              54

            
	
              ARTICLE
                6 SERVICING AND ADMINISTRATOR FEES

            	
              55

            
	
              SECTION
                6.1. Servicing Fee

            	
              55

            
	
              SECTION
                6.2. Administrator Fee

            	
              55

            
	
              ARTICLE
                7 CHANGE IN CIRCUMSTANCES

            	
              55

            
	
              SECTION
                7.1. Illegality

            	
              55

            
	
              SECTION
                7.2. Increased Costs.

            	
              56

            
	
              SECTION
                7.3. Taxes.

            	
              57

            
	
              SECTION
                7.4. Break Funding Payments

            	
              59

            
	
              SECTION
                7.5. Alternate Rate of Interest

            	
              60

            
	
              SECTION
                7.6. Mitigation Obligations

            	
              60

            
	
              ARTICLE
                8 REPRESENTATIONS AND WARRANTIES, COVENANTS

            	
              61

            
	
              SECTION
                8.1. Representations and Warranties of the Issuer and VMS

            	
              61

            
	
              SECTION
                8.2. Covenants of the Issuer and VMS

            	
              61

            
	
              SECTION
                8.3. Covenants of the Administrator

            	
              61

            
	
              SECTION
                8.4. Obligations Unaffected

            	
              62

            
	
              ARTICLE
                9 CONDITIONS PRECEDENT

            	
              62

            
	
              SECTION
                9.1. Conditions Precedent to Effectiveness of Indenture
                Supplement

            	
              62

            

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

    
      	
              ARTICLE
                10 THE ADMINISTRATIVE AGENT

            	
              66

            
	
              SECTION
                10.1. Appointment

            	
              66

            
	
              SECTION
                10.2. Delegation of Duties

            	
              66

            
	
              SECTION
                10.3. Exculpatory Provisions

            	
              66

            
	
              SECTION
                10.4. Reliance by Administrative Agent

            	
              67

            
	
              SECTION
                10.5. Notice of Administrator Default or Amortization Event or Potential
                Amortization Event

            	
              67

            
	
              SECTION
                10.6. Non Reliance on the Administrative Agent and Other
                Purchasers

            	
              68

            
	
              SECTION
                10.7. Indemnification

            	
              68

            
	
              SECTION
                10.8. The Administrative Agent in Its Individual Capacity

            	
              69

            
	
              SECTION
                10.9. Resignation of Administrative Agent; Successor Administrative
                Agent

            	
              69

            
	
              ARTICLE
                11 THE FUNDING AGENTS

            	
              70

            
	
              SECTION
                11.1. Appointment

            	
              70

            
	
              SECTION
                11.2. Delegation of Duties

            	
              70

            
	
              SECTION
                11.3. Exculpatory Provisions

            	
              70

            
	
              SECTION
                11.4. Reliance by Each Funding Agent

            	
              71

            
	
              SECTION
                11.5. Notice of Administrator Default or Amortization Event or Potential
                Amortization Event

            	
              71

            
	
              SECTION
                11.6. Non Reliance on Each Funding Agent and Other Purchaser
                Groups

            	
              71

            
	
              SECTION
                11.7. Indemnification

            	
              72

            
	
              ARTICLE
                12 MISCELLANEOUS

            	
              72

            
	
              SECTION
                12.1. Ratification of Indenture

            	
              72

            
	
              SECTION
                12.2. Governing Law

            	
              72

            
	
              SECTION
                12.3. Further Assurances

            	
              73

            
	
              SECTION
                12.4. Payments

            	
              73

            

    

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

    
      	
              SECTION
                12.5. Costs and Expenses

            	
              73

            
	
              SECTION
                12.6. No Waiver; Cumulative Remedies

            	
              73

            
	
              SECTION
                12.7. Amendments

            	
              73

            
	
              SECTION
                12.8. Severability

            	
              74

            
	
              SECTION
                12.9. Notices

            	
              74

            
	
              SECTION
                12.10. Successors and Assigns

            	
              75

            
	
              SECTION
                12.11. Securities Laws

            	
              77

            
	
              SECTION
                12.12. Adjustments; Set-off

            	
              77

            
	
              SECTION
                12.13. Counterparts

            	
              78

            
	
              SECTION
                12.14. No Bankruptcy Petition

            	
              78

            
	
              SECTION
                12.15. SUBIs

            	
              79

            
	
              SECTION
                12.16. Discharge of Indenture

            	
              79

            
	
              SECTION
                12.17. Limited Recourse

            	
              80

            
	
              SECTION
                12.18. Waiver of Setoff

            	
              80

            
	
              SECTION
                12.19. Conflict of Instructions

            	
              80

            
	
              SECTION
                12.20. JPMorgan Chase Conflict Waiver

            	
              80

            
	
              SECTION
                12.21. Confidential Information.

            	
              81

            

    

     

    
      
        	
                SCHEDULES

                 

              
	
                Schedule
                  I:

                 

              	
                List
                  of Match Funding CP Conduit Purchasers

                 

              
	
                EXHIBITS

                 

              
	
                Exhibit
                  A:

              	
                Form
                  of Series 2006-1 Variable Funding Investor Note

              
	
                Exhibit
                  B:

              	
                Increase
                  Notice

              
	
                Exhibit
                  C:

              	
                Monthly
                  Settlement Statement

              
	
                Exhibit
                  D:

              	
                UCC
                  Certificate

              
	
                Exhibit
                  E: 

              	
                Form
                  of Transfer Supplement

              
	
                Exhibit
                  F:

              	
                Form
                  of Purchaser Group Supplement

              

      

    

     

     

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

     

    

      SERIES
        2006-1 SUPPLEMENT, dated as of March 7, 2006 (as amended, supplemented, restated
        or otherwise modified from time to time, this “Indenture
        Supplement”)
        among
        CHESAPEAKE FUNDING LLC, a special purpose limited liability company established
        under the laws of Delaware (the “Issuer”),
        PHH
        VEHICLE MANAGEMENT SERVICES, LLC (“VMS”),
        as
        administrator (in such capacity, the “Administrator”),
        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
        12.10(c)
        (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 successor
        and
        assign (the “Funding
        Agent”
with
        respect to such CP Conduit Purchaser), JPMorgan Chase, in its capacity as
        administrative agent for the CP Conduit Purchasers, the APA Banks and the
        Funding Agents (the “Administrative
        Agent”),
        and
        JPMorgan Chase, in its capacity as Indenture Trustee (together with its
        successors in trust thereunder as provided in the Base Indenture referred
        to
        below, the “Indenture
        Trustee”),
        to
        the Base Indenture, dated as of March 7, 2006, between the Issuer and the
        Indenture Trustee (as amended, modified, restated or supplemented from time
        to
        time, exclusive of Indenture Supplements creating new Series of Investor
        Notes,
        the “Base
        Indenture”).

       

      

      PRELIMINARY
        STATEMENT

      

      WHEREAS,
        Sections
        2.2
        and
12.1
        of the
        Base Indenture provide, among other things, that the Issuer and the Indenture
        Trustee may at any time and from time to time enter into an Indenture Supplement
        to the Base Indenture for the purpose of authorizing the issuance of one
        or more
        Series of Investor Notes.

       

      NOW,
        THEREFORE, the parties hereto agree as follows:

       

      DESIGNATION

      There
        is
        hereby created a Series of Investor Notes to be issued pursuant to the Base
        Indenture and this Indenture Supplement and such Series of Investor Notes
        shall
        be designated generally as Floating Rate Asset Backed Variable Funding Investor
        Notes, Series 2006-1.

       

      The
        proceeds from the sale of the Series 2006-1 Investor Notes (as defined herein)
        and the proceeds from any Increase (as defined herein) shall be deposited
        in the
        Series 2006-1 Collection Subaccount and shall be used by the Issuer to fund
        the
        Loans to Holdings under the Loan Agreement and the prepayment of the Invested
        Amounts of other Series of Investor Notes.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ARTICLE
        1

       

      DEFINITIONS

       

      (a) All
        capitalized terms not otherwise defined herein are defined in the Definitions
        List attached to the Base Indenture as Schedule
        1
        thereto.
        All Article, Section or Subsection references herein shall refer to Articles,
        Sections or Subsections of this Indenture 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 2006-1
        Investor Notes and not to any other Series of Investor Notes issued by the
        Issuer. 

       

      (b) The
        following words and phrases shall have the following meanings with respect
        to
        the Series 2006-1 Investor 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:

       

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

       

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

       

      “Additional
        Costs Cap”
means,
        for any Payment Date, an amount equal to the quotient of the product of (a)
        0.25% per annum, (b) the weighted average Series 2006-1 Invested Amount during
        the immediately preceding Series 2006-1 Interest Period and (c) the number
        of
        days in such Series 2006-1 Interest Period divided by 360.

       

      “Additional
        Interest”
is
        defined in Section
        5A.3(b).

       

      “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.

       

      “Administrative
        Agent”
is
        defined in the recitals hereto.

       

      “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 plus1⁄2
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.

       

      “Amortization
        Event”
is
        defined in Article
        4.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      “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.

       

      “Applicable
        Option”
means,
        on any date, (a) Option 1 on the Enhancement Matrix during any period when
        Overconcentration Option 1 is in effect in accordance with Section
        13.18
        of the
        Base Indenture, (b) Option 2 on the Enhancement Matrix during any period
        when
        Overconcentration Option 2 is in effect in accordance with Section
        13.18
        of the
        Base Indenture or (c) Option 3 on the Enhancement Matrix during any period
        when
        Overconcentration Option 3 is in effect in accordance with Section
        13.18
        of the
        Base Indenture.

       

      “Article
        7 Costs”
means
        any amounts due pursuant to Article 7.

       

      “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.

       

      “Assumed
        Lease Term”
means,
        with respect to any Series 2006-1 Yield Shortfall Lease, the number of months
        over which the Capitalized Cost of the related Leased Vehicle is being
        depreciated thereunder.

       

      “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 2006-1
        Initial Invested Amount not to be funded by such Purchaser Group by issuing
        Commercial Paper if such Business Day is the Series 2006-1 Initial Funding
        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 the Purchaser Group
        Increase Amount with respect to such Purchaser Group 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 2006-1
        Initial Invested Amount to be funded by such Purchaser Group by issuing
        Commercial Paper if such Business Day is the Series 2006-1 Initial Funding
        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 the Purchaser Group
        Increase Amount with respect to such Purchaser Group for such Business Day
        to be
        funded by such Purchaser Group by issuing Commercial Paper.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      “Benefitted
        Purchaser Group”
is
        defined in Section
        12.12(a).

       

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

       

      “Car”
means
        an automobile or a Light-Duty Truck.

       

      “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 2006-1 Closing Date, (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 , 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 2006-1 Closing Date or (c) any request, guideline or directive (whether
        or not having the force of law) from 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 “Accounting Body”) charged with the
        administration, interpretation or application thereof, or the compliance
        with
        any request or directive of any Accounting Body (whether or not having the
        force
        of law) made, issued or occurring after the Series 2006-1 Closing
        Date.

       

      “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 2006-1 Investor Note on the Series 2006-1
        Initial Funding 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
        Fee”
is
        defined in Section
        2.7(e).

       

      “Commitment
        Fee Payment”
is
        defined in Section
        5A.4(c)(vi).

       

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

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      “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 2006-1 Maximum Invested Amount on such
        date.

       

      “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 with respect to such CP
        Conduit
        Purchaser pursuant to Section
        12.10(b).

       

      “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 by issuing Commercial Paper on such day.

       

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

       

      “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
        2006-1 Amortization Period, each CP Rate Period shall end on or prior to
        the
        next succeeding Payment 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.

       

      “Daily
        Principal Utilization Amount”
means,
        for any Business Day, the sum of the following amounts to be withdrawn from
        the
        Series 2006-1 Principal Collection Subaccount pursuant to Section 5A.2(g)
        on
        such Business Day: (i) the amount of any Decrease to be applied to reduce
        the
        Series 2006-1 Invested Amount pursuant to Section
        2.5,
        (ii)
        the amount that the Issuer has elected to apply to reduce the principal amount
        of any Outstanding Series of Investor Notes (other than the Series 2006-1
        Investor Notes) and (iii) the portion of the Loan to be made to Holdings
        on such
        Business Day pursuant to the Loan Agreement to be financed with the proceeds
        of
        the Series 2006-1 Investor Notes.

       

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

       

      “Deficiency”
is
        defined in Section
        5A.4(b).

       

      “Discount”
means,
        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).

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      “Effective
        Date”
is
        defined in Section
        9.1.

       

      “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.

       

      “Enhancement
        Matrix”
means
        the following matrix:

       

      
        	 	
                Option
                  1

                 

              	
                Option
                  2

                 

              	
                Option
                  3

                 

              
	
                Level
                  1 Required Enhancement Percentage 

                 

              	
                5.263%

                 

              	
                5.541%

                 

              	
                5.820%

                 

              
	
                Level
                  2 Required Enhancement Percentage 

                 

              	
                6.093%

                 

              	
                6.371%

                 

              	
                6.650%

                 

              
	
                Level
                  3 Required Enhancement Percentage

                 

              	
                6.913%

                 

              	
                7.191%

                 

              	
                7.470%

                 

              
	
                Required
                  Reserve Account Amount Percentage

                 

              	
                2.064%

                 

              	
                2.322%

                 

              	
                2.455%

                 

              

      

      “Equipment”
means
        any Vehicle that is not a Car, a Forklift, a Heavy-Duty Truck, a Medium-Duty
        Truck, a Truck Body or a Trailer.

       

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

       

      (a) initially,
        the period commencing on the Series 2006-1 Initial Funding 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

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      (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 Payment 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.

       

      “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
        Alternative Vehicle Amount”
means,
        on any Settlement Date, an amount equal to the excess, if any, of (a) the
        sum of

       

      (i)
        the
        aggregate Lease Balance of all Eligible Leases the related Leased Vehicle
        of
        which is not a Car allocated to the Lease SUBI as of the last day of the
        Monthly
        Period immediately preceding such Settlement Date plus 

       

      (ii)
        an
        amount equal to the aggregate for each Unit Vehicle which is not a Car subject
        to a Closed-End Lease allocated to the Lease SUBI as of the last day of such
        Monthly Period of the lesser of (A) the Stated Residual Value of such Unit
        Vehicle and (B) the Net Book Value of such Unit Vehicle as of the last day
        of
        such Monthly Period;

       

      over
        (b)
        an amount equal to 31.5% of the Aggregate Unit Balance as of such Settlement
        Date.

       

      “Excess
        Equipment Amount”
means,
        on any Settlement Date, an amount equal to the excess, if any, of (a) the
        sum of

       

      (i)
        the
        aggregate Lease Balance of all Eligible Leases the related Leased Vehicle
        of
        which is Equipment allocated to the Lease SUBI as of the last day of the
        Monthly
        Period immediately preceding such Settlement Date plus 

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      (ii)
        an
        amount equal to the aggregate for each Unit Vehicle which is Equipment subject
        to a Closed-End Lease allocated to the Lease SUBI as of the last day of such
        Monthly Period of the lesser of (A) the Stated Residual Value of such Unit
        Vehicle and (B) the Net Book Value of such Unit Vehicle as of the last day
        of
        such Monthly Period; 

       

      over
        (b)
        an amount equal to 5% of the Aggregate Unit Balance as of such Settlement
        Date.

       

      “Excess
        Forklift Amount”
means,
        on any Settlement Date, an amount equal to the excess, if any, of (a) the
        sum of

       

      (i)
        the
        aggregate Lease Balance of all Eligible Leases the related Leased Vehicle
        of
        which is a Forklift allocated to the Lease SUBI as of the last day of the
        Monthly Period immediately preceding such Settlement Date plus 

       

      (ii)
        an
        amount equal to the aggregate for each Unit Vehicle which is a Forklift subject
        to a Closed-End Lease allocated to the Lease SUBI as of the last day of such
        Monthly Period of the lesser of (A) the Stated Residual Value of such Unit
        Vehicle and (B) the Net Book Value of such Unit Vehicle as of the last day
        of
        such Monthly Period; 

       

      over
        (b)
        an amount equal to 2% of the Aggregate Unit Balance as of such Settlement
        Date.

       

      “Excess
        Heavy-Duty Truck Amount”
means,
        on any Settlement Date, an amount equal to the excess, if any, of (a) the
        sum of

       

      (i)
        the
        aggregate Lease Balance of all Eligible Leases the related Leased Vehicle
        of
        which is a Heavy-Duty Truck allocated to the Lease SUBI as of the last day
        of
        the Monthly Period immediately preceding such Settlement Date plus 

       

      (ii)
        an
        amount equal to the aggregate for each Unit Vehicle which is a Heavy-Duty
        Truck
        subject to a Closed-End Lease allocated to the Lease SUBI as of the last
        day of
        such Monthly Period of the lesser of (A) the Stated Residual Value of such
        Unit
        Vehicle and (B) the Net Book Value of such Unit Vehicle as of the last day
        of
        such Monthly Period; 

       

      over
        (b)
        an amount equal to 7.5% of the Aggregate Unit Balance as of such Settlement
        Date.

       

      “Excess
        Medium-Duty Truck Amount”
means,
        on any Settlement Date, an amount equal to the excess, if any, of (a) the
        sum of

       

      (i)
        the
        aggregate Lease Balance of all Eligible Leases the related Leased Vehicle
        of
        which is a Medium-Duty Truck allocated to the Lease SUBI as of the last day
        of
        the Monthly Period immediately preceding such Settlement Date plus 

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      (ii)
        an
        amount equal to the aggregate for each Unit Vehicle which is a Medium-Duty
        Truck
        subject to a Closed-End Lease allocated to the Lease SUBI as of the last
        day of
        such Monthly Period of the lesser of (A) the Stated Residual Value of such
        Unit
        Vehicle and (B) the Net Book Value of such Unit Vehicle as of the last day
        of
        such Monthly Period;

       

      over
        (b)
        an amount equal to 15.0% of the Aggregate Unit Balance as of such Settlement
        Date.

       

      “Excess
        Trailer Amount”
means,
        on any Settlement Date, an amount equal to the excess, if any, of (a) the
        sum of

       

      (i)
        the
        aggregate Lease Balance of all Eligible Leases the related Leased Vehicle
        of
        which is a Trailer allocated to the Lease SUBI as of the last day of the
        Monthly
        Period immediately preceding such Settlement Date plus 

       

      (ii)
        an
        amount equal to the aggregate for each Unit Vehicle which is a Trailer subject
        to a Closed-End Lease allocated to the Lease SUBI as of the last day of such
        Monthly Period of the lesser of (A) the Stated Residual Value of such Unit
        Vehicle and (B) the Net Book Value of such Unit Vehicle as of the last day
        of
        such Monthly Period; 

       

      over
        (b)
        an amount equal to 3% of the Aggregate Unit Balance as of such Settlement
        Date.

       

      “Excess
        Truck Amount”
means,
        on any Settlement Date, an amount equal to the greater of (a) the sum of
        (i) the
        Excess Heavy-Duty Truck Amount on such Settlement Date and (ii) the Excess
        Medium-Duty Truck Amount on such Settlement Date and (b) an amount equal
        to the
        excess, if any, of (x) the sum of 

       

      (i)
        the
        aggregate Lease Balance of all Eligible Leases the related Leased Vehicle
        of
        which is a Medium-Duty Truck or a Heavy-Duty Truck allocated to the Lease
        SUBI
        as of the last day of the Monthly Period immediately preceding such Settlement
        Date plus 

       

      (ii)
        an
        amount equal to the aggregate for each Unit Vehicle which is a Medium-Duty
        Truck
        or a Heavy-Duty Truck subject to a Closed-End Lease allocated to the Lease
        SUBI
        as of the last day of such Monthly Period of the lesser of (A) the Stated
        Residual Value of such Unit Vehicle and (B) the Net Book Value of such Unit
        Vehicle as of the last day of such Monthly Period;

       

      over
        (y)
        an amount equal to 21.5% of the Aggregate Unit Balance as of such Settlement
        Date.

       

      “Excess
        Truck Body Amount”
means,
        on any Settlement Date, an amount equal to the excess, if any, of (a) the
        sum of

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      (i)
        the
        aggregate Lease Balance of all Eligible Leases the related Leased Vehicle
        of
        which is a Truck Body allocated to the Lease SUBI as of the last day of the
        Monthly Period immediately preceding such Settlement Date plus 

       

      (ii)
        an
        amount equal to the aggregate for each Unit Vehicle which is a Truck Body
        subject to a Closed-End Lease allocated to the Lease SUBI as of the last
        day of
        such Monthly Period of the lesser of (A) the Stated Residual Value of such
        Unit
        Vehicle and (B) the Net Book Value of such Unit Vehicle as of the last day
        of
        such Monthly Period;

       

      over
        (b)
        an amount equal to 2% of the Aggregate Unit Balance as of such Settlement
        Date.

       

      “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 the Issuer
        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 2006-1 Investor 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 the Issuer 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
        2006-1 Investor 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 shall have been declared or automatically
        occurred.

       

      “Extending
        Purchaser Group”
shall
        mean 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.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      “Fee
        Letter”
means
        the Fee Letter executed by and between the Issuer, the Administrator and
        the
        Funding Agent with respect to each Purchaser Group, as the same may be amended,
        restated, supplemented or otherwise modified from time to time.

       

      “Final
        Maturity Date”
means
        the Payment Date that occurs in the 125th month after the month in which
        the
        Series 2006-1 Amortization Period shall have commenced.

       

      “Financial
        Assets”
is
        defined in Section 5A.13(b)(i).

       

      “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.

       

      “Forklift”
means
        a
        high-lift, self-loading mobile vehicle, equipped with load carriage and forks,
        for transporting and tiering loads.

       

      “Funding
        Agent”
is
        defined in the recitals hereto.

       

      “Gross
        Vehicle Weight”
means
        the maximum manufacturer recommended weight that the axels of a Truck or
        Tractor
        can carry including the weight of the Truck or Tractor.

       

      “Heavy-Duty
        Truck”
means
        a
        Truck or Tractor having a Gross Vehicle Weight of over 33,000
        pounds.

       

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

       

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

       

      “Increased
        Costs”
means,
        for each Payment Date, the sum of (1) any Article 7 Costs due and payable
        on
        such Payment Date, (2) any other unpaid Program Costs due and payable on
        such
        Payment Date, (3) any amounts due and payable pursuant to Section
        2.8
        on such
        Payment Date and (4) the Increased Costs Carry Forward Amount for the preceding
        Payment Date.

       

      “Increased
        Costs Carry Forward Amount”
means,
        for each Payment Date, the excess, if any, of (a) Increased Costs for such
        Payment Date over (b) the aggregate amount deposited in the Series 2006-1
        Distribution Account on account of the Increased Costs for such Payment Date
        pursuant to Sections
        5A.4(c)(ix)
        and
(xv).

       

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

       

      “Indemnified
        Taxes”
means
        Taxes other than Excluded Taxes.

       

      “Indenture
        Supplement”
has
        the
        meaning set forth in the preamble.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      “Interest
        Shortfall”
is
        defined in Section
        5A.3(b).

       

      “Lease
        Rate Cap Costs”
means,
        for each Payment Date, any amounts owed by the Issuer to the Series 2006-1
        Investor Noteholders pursuant to Section
        5A.12(e)
        on such
        Payment Date.

       

      “Lease
        Rate Cap Event”
means
        the failure on the part of the Issuer to have the Lease Rate Caps that it
        is
        required to have in accordance with Section
        5A.12.
        

       

      “JPMorgan
        Chase”
means
        JPMorgan Chase Bank, National Association, and its successors and
        assigns.

       

      “Level
        1 Required Enhancement Percentage”
means
        on any date the percentage set forth in the Enhancement Matrix on the line
        titled “Level 1 Required Enhancement Percentage” for the Applicable
        Option.

       

      “Level
        2 Required Enhancement Percentage”
means
        on any date the percentage set forth in the Enhancement Matrix on the line
        titled “Level 2 Required Enhancement Percentage” for the Applicable
        Option.

       

      “Level
        3 Required Enhancement Percentage”
means
        on any date the percentage set forth in the Enhancement Matrix on the line
        titled “Level 3 Required Enhancement Percentage” for the Applicable
        Option.

       

      “LIBO
        Rate”
means,
        with respect to each day during each Eurodollar Period pertaining to a
        Eurodollar Tranche, the rate appearing on Telerate Page 3750 at approximately
        11:00 a.m. (London time) on the second Business 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.
        

       

      “Light-Duty
        Truck”
means
        a
        Truck having a Gross Vehicle Weight of under 16,001 pounds.

       

      “Match
        Funding CP Conduit Purchaser”
means
        each CP Conduit Purchaser that is identified on Schedule I as a Match Funding
        CP
        Conduit Purchaser and each CP Conduit Purchaser that, after the Series 2006-1
        Closing Date, notifies the Issuer 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 the Issuer and the
        Administrative Agent in writing that the Issuer 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.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      “Medium-Duty
        Truck”
means
        a
        Truck or Tractor having a Gross Vehicle Weight of between 16,001 pounds and
        33,000 pounds.

       

      “Monthly
        Funding Costs”
means,
        with respect to each Series 2006-1 Interest Period and any Purchaser Group,
        the
        sum of: 

       

      (a) for
        each
        day during such Series 2006-1 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 2006-1 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, 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 2006-1 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
        Interest Payment”
is
        defined in Section
        5A.4(c)(v).

       

      “Monthly
        Principal Payment”
is
        defined in Section
        5A.6.

       

      “New
        York UCC”
is
        defined in Section 5A.13(b)(i).

       

      “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).

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      “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
        the Transaction Documents or from the execution, delivery or enforcement
        of, or
        otherwise with respect to, any Transaction Document.

       

      “Outstanding”
means,
        with respect to the Series 2006-1 Investor Notes, the Series 2006-1 Invested
        Amount shall not have been reduced to zero and all accrued interest and other
        amounts owing on the Series 2006-1 Investor 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
        12.10(d).

       

      “Paydown
        Period”
means
        any period from and including the Expiry Date with respect to any Purchaser
        Group to but excluding the earlier of (a) the date on which the Purchaser
        Group
        Invested Amount with respect to such Purchaser Group shall have been reduced
        to
        zero and (b) the commencement of the Series 2006-1 Amortization
        Period.

       

      “Payment
        Date”
means
        the 7th day of each month, or if such date is not a Business Day, the next
        succeeding Business Day, commencing April 7, 2006.

       

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

       

      “Prepayment
        Date”
is
        defined in Article
        5.

       

      “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
        Overpayment Amount”
means,
        for each Settlement Date, the excess, if any, of (a) the aggregate amount
        withdrawn from the Series 2006-1 General Collection Subaccount and deposited
        in
        the Series 2006-1 Principal Collection Subaccount pursuant to Section
        5A.2(f)
        during
        the immediately preceding Monthly Period over (b) the Series 2006-1 Principal
        Payment Amount for such Settlement Date.

       

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

       

      “Program
        Costs”
shall
        mean the sum of (i) all expenses, indemnities and other amounts due and
        payable to the Administrative Agent, the CP Conduit Purchasers, the Funding
        Agents, the Program Support Providers and the APA Banks under the Indenture
        or
        this Indenture Supplement (including, without limitation, any Article 7 Costs)
        and (ii) the product of (A) all unpaid fees and expenses due and payable
        to
        counsel to, and independent auditors of, the Issuer (other than fees and
        expenses payable on or in connection with the closing of the issuance of
        Series
        2006-1 or any other Series) and (B) a fraction, the numerator of which is
        the
        Series 2006-1 Maximum Invested Amount and the denominator of which is the
        sum of
        (x) the aggregate commitment amounts on such Business Day (in respect of
        any
        variable funding notes of any other Outstanding Series), (y) the Series 2006-1
        Maximum Invested Amount plus
        (z) the
        aggregate Invested Amounts of all other Outstanding Series (other than variable
        funding notes).

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      “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.

       

      “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 2006-1 Invested Amount on such
        date.

       

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

       

      “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
        2006-1 Initial Funding Date, such Purchaser Group’s Commitment Percentage of the
        Series 2006-1 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)
        such Purchaser Group’s Commitment Percentage of any Increase Amount made
        pursuant to Section
        2.3
        on such
        day minus
        (iii)
        the amount of principal payments made to such Purchaser Group pursuant to
        Section
        5A.7
        on such
        date.

       

      “Purchaser
        Group Supplement”
is
        defined in Section 12.10(e).

       

      “Rating
        Agencies”
means,
        with respect to the Series 2006-1 Investor Notes, Standard & Poor’s and
        Moody’s and any other nationally recognized rating agency from which a rating
        for the Commercial Paper with respect to any CP Conduit Purchaser was requested
        by such CP Conduit Purchaser.

       

      “Rating
        Agency Condition”
means,
        with respect to any action specified herein as requiring satisfaction of
        the
        Rating Agency Condition, that each Rating Agency shall have been given 10
        days’
(or such shorter period as shall be acceptable to each Rating Agency) prior
        notice thereof and that each of the Rating Agencies shall have notified the
        Administrative Agent, each CP Conduit Purchaser and the Funding Agent with
        respect to such CP Conduit Purchaser in writing that such action will not
        result
        in a reduction or withdrawal of the then current rating of the Commercial
        Paper
        with respect to such CP Conduit Purchaser. 

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

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

       

      “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.

       

      “Required
        Reserve Account Amount Percentage”
means
        on any date the percentage set forth in the Enhancement Matrix on the line
        titled “Required Reserve Account Amount Percentage” for the Applicable Option.

       

      “Scheduled
        Expiry Date”
shall
        mean, with respect to any Purchaser Group, the later of (a) March 6, 2007
        and
        (b) the last day of any extension of the Commitment of the APA Banks
        included in such Purchaser Group made in accordance with Section
        2.6(b).

       

      “Securities
        Intermediary”
is
        defined in Section 5A.13(a).

       

      “Series
        2006-1”
means
        Series 2006-1, the Principal Terms of which are set forth in this Indenture
        Supplement.

       

      “Series
        2006-1 Administrator Fee”
is
        defined in Section 6.2.

       

      “Series
        2006-1 Allocated Adjusted Aggregate Unit Balance”
means,
        as of any date of determination, the product of (a) the Adjusted Aggregate
        Unit
        Balance and (b) the percentage equivalent of a fraction the numerator of
        which
        is the Series 2006-1 Required Asset Amount as of such date and the denominator
        of which is the sum of (x) the Series 2006-1 Required Asset Amount and (y)
        the
        aggregate Required Asset Amounts with respect to each other Series of Investor
        Notes as of such date, including all Series of Investor Notes that have been
        paid in full but as to which the Amortization Period shall have not
        ended.

       

      “Series
        2006-1 Allocated Asset Amount Deficiency”
means,
        as of any date of determination, the amount, if any, by which the Series
        2006-1
        Allocated Adjusted Aggregate Unit Balance is less than the Series 2006-1
        Required Asset Amount as of such date.

       

      “Series
        2006-1 Amortization Period”
means
        the period commencing on the Business Day following the earliest to occur
        of (i)
        the date on which the Expiry Date with respect to each Purchaser shall have
        occurred, (ii) the Optional Termination Date and (iii) the Prepayment Date
        and
        ending on the date when the Series 2006-1 Invested Amount shall have been
        reduced to zero and all accrued interest and other amounts owing on the Series
        2006-1 Investor Notes and to the Administrative Agent, the CP Conduit
        Purchasers, the Funding Agents and the APA Banks shall have been paid in
        full.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      “Series
        2006-1 Basic Servicing Fee”
is
        defined in Section
        6.1.

       

      “Series
        2006-1 Closing Date”
means
        March 7, 2006.

       

      “Series
        2006-1 Collateral”
means
        the Collateral, the Series 2006-1 Reserve Account, the Series 2006-1 Yield
        Supplement Account and the Series 2006-1 Distribution Account.

       

      “Series
        2006-1 Collection Subaccount”
        is defined in Section
        5A.1(a).

       

      “Series
        2006-1 Daily Principal Allocation”
is
        defined in Section
        5A.2(b).

       

      “Series
        2006-1 Designated Account” is defined in Section 5A.13(a).“Series
        2006-1 Distribution Account”
is
        defined in Section
        5A.11(a).

       

      “Series
        2006-1 Eligible Counterparty”
means
        a
        financial institution having on the date of any acquisition of a Lease Rate
        Cap
        short-term debt ratings of “A-1” by Standard & Poor’s and “P-1” by Moody’s
        and long-term unsecured debt ratings of at least “A+” by Standard & Poor’s
        and “Aa3” by Moody’s.

       

      “Series
        2006-1 Excess Fleet Receivable Amount”
means,
        for any Settlement Date, an amount equal to the product of (a) the average
        daily
        Series 2006-1 Invested Percentage during the immediately preceding Monthly
        Period and (b) the Excess Fleet Receivable Amount for such Settlement
        Date.

       

      “Series
        2006-1 Gain on Sale Account Percentage”
means
        10%.

       

      “Series
        2006-1 Hypothetical Yield Shortfall Amount”
means,
        for any Settlement Date, an amount equal to the product of (x) the excess,
        if
        any, of the Series 2006-1 Minimum Yield Rate for such Settlement Date over
        the
        CP Rate as of the last day of the immediately preceding Monthly Period, (y)
        the
        Series 2006-1 Invested Percentage on such Settlement Date of the aggregate
        Lease
        Balance of all Floating Rate Leases as of the last day of the immediately
        preceding Monthly Period and (z) 2.75.

       

      “Series
        2006-1 Initial Funding Date”
is
        defined in Section
        2.1(a).

       

      “Series
        2006-1 Initial Invested Amount”
is
        defined in Section
        2.3(a).

       

      “Series
        2006-1 Interest Period”
means
        a
        period commencing on and including a Payment Date and ending on and including
        the day preceding the next succeeding Payment Date; provided,
        however, that the initial Series 2006-1 Interest Period shall commence on
        and
        include the Series 2006-1 Initial Funding Date and end on and include April
        6,
        2006.

       

      “Series
        2006-1 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
        2006-1 Invested Percentage”
means,
        with respect to any Business Day (i) during the Series 2006-1 Revolving Period,
        the percentage equivalent (which percentage shall never exceed 100%) of a
        fraction the numerator of which shall be equal to the Series 2006-1 Allocated
        Adjusted Aggregate Unit Balance as of the end of the immediately preceding
        Business Day and the denominator of which is the sum of the numerators used
        to
        determine invested percentages for allocations for all Series of Investor
        Notes
        (and all classes of such Series of Investor Notes), including all Series
        of
        Investor Notes that have been paid in full but as to which the Amortization
        Period shall have not ended, as of the end of such immediately preceding
        Business Day or (ii) during the Series 2006-1 Amortization Period, the
        percentage equivalent (which percentage shall never exceed 100%) of a fraction
        the numerator of which shall be equal to the Series 2006-1 Allocated Adjusted
        Aggregate Unit Balance as of the end of the Series 2006-1 Revolving Period,
        and
        the denominator of which is the sum of the numerators used to determine invested
        percentages for allocations for all Series of Investor Notes (and all classes
        of
        such Series of Investor Notes), including all Series of Investor Notes that
        have
        been paid in full but as to which the Amortization Period shall have not
        ended,
        as of the end of the immediately preceding Business Day.

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      “Series
        2006-1 Investor Noteholder”
means
        the Person in whose name a Series 2006-1 Investor Note is registered in the
        Note
        Register.

       

      “Series
        2006-1 Investor Notes”
means
        any one of the Series 2006-1 Floating Rate Asset Backed Variable Funding
        Investor Notes, executed by the Issuer and authenticated and delivered by
        the
        Indenture Trustee, substantially in the form of Exhibit
        A.

       

      “Series
        2006-1 Liquid Credit Enhancement Deficiency”
means,
        on any date of determination, the amount by which the Series 2006-1 Reserve
        Account Amount is less than the Series 2006-1 Required Reserve Account
        Amount.

       

      “Series
        2006-1 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
        2006-1 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
        2006-1 Minimum Yield Rate”
means,
        for any Settlement Date, a rate per annum equal to the sum of (i) the Series
        2006-1 Note Rate for the Series 2006-1 Interest Period ending on the day
        before
        such Settlement Date, (ii) 0.225% and (iii) 0.60%.

       

      “Series
        2006-1 Monthly Interest”
is
        defined in Section
        5A.3(a).

       

      “Series
        2006-1 Monthly Residual Value Gain”
means,
        for any Settlement Date, an amount equal to the product of (a) the average
        daily
        Series 2006-1 Invested Percentage during the immediately preceding Monthly
        Period and (b) the Monthly Residual Value Gain for such Settlement
        Date.

       

      “Series
        2006-1 Monthly Servicer Advance Reimbursement Amount”
means,
        for each Payment Date, an amount equal to the product of (a) the Monthly
        Servicer Advance Reimbursement Amount for such Payment Date and (b) the average
        daily Series 2006-1 Invested Percentage during the immediately preceding
        Monthly
        Period.

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      “Series
        2006-1 Note Rate”
means
        for any Series 2006-1 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 2006-1 Interest Period and the denominator of which is equal
        to the
        average daily Series 2006-1 Invested Amount during such Series 2006-1 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 2006-1 Interest Period; provided,
        however,
        that
        the Series 2006-1 Note Rate will in no event be higher than the maximum rate
        permitted by applicable law.

       

      “Series
        2006-1 Note Termination Date”
means
        the date on which the Series 2006-1 Invested Amount shall have been reduced
        to
        zero and all accrued and unpaid interest on the Series 2006-1 Notes shall
        have
        been paid in full.

       

      “Series
        2006-1 Prepayment Amount”
means,
        the sum of the following amounts with respect to each Purchaser
        Group:

       

      (a) the
        Purchaser Group Invested Amount with respect to such Purchaser Group,
plus

       

      (b) (i)
        if the
        CP Conduit Purchaser in such Purchaser Group is a Match Funding CP Conduit
        Purchaser, the sum of (A) 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
        Prepayment Date and (B) 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 Prepayment Date to and excluding
        the
        maturity date of each CP Tranche with respect to such Match Funding CP Conduit
        Purchaser or (ii) if the CP Conduit Purchaser in such Purchaser Group is
        a
        Pooled Funding CP Conduit Purchaser, the sum of (A) the aggregate amount
        of
        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 Prepayment Date and (B) 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 Prepayment Date to and excluding the maturity dates of such
        Commercial Paper; plus

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

      (c) 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 for the period from and including the immediately preceding
        Period End Date to and excluding the Prepayment Date, plus

       

      (d) the
        Commitment Fee payable to such Purchaser Group calculated for the period
        from
        and including the immediately preceding Payment Date to and excluding the
        Prepayment Date, plus

       

      (e) all
        Article 7 Costs then due and payable to such Purchaser Group, plus

       

      (f) without
        duplication, any other Program Costs then due and payable to such Purchaser
        Group and any amounts then due and payable to such Purchaser Group pursuant
        to
Section
        2.8.

       

      “Series
        2006-1 Principal Collection Subaccount”
is
        defined in Section
        5A.1(a).

       

      “Series
        2006-1 Principal Payment Amount”
means,
        for any Settlement Date, an amount equal to the product of (a) the average
        daily
        Series 2006-1 Invested Percentage during the immediately
        preceding Monthly Period and (b) the Principal Payment Amount for such
        Settlement Date.

       

      “Series
        2006-1 Required Asset Amount”
means,
        as of any date of determination, the sum of the Series 2006-1 Invested Amount
        and the Series 2006-1 Required Overcollateralization Amount as of such
        date.

       

      “Series
        2006-1 Required Enhancement Amount”
means,
        on any date of determination, an amount equal to the sum of (a) (i) during
        the
        Series 2006-1 Revolving Period, the Series 2006-1 Required Percentage of
        the sum
        of (x) the Series 2006-1 Maximum Invested Amount on such date and (y) during
        any
        Paydown Period, the aggregate Purchaser Group Invested Amount of any
        Non-Extending Purchaser Groups on such date or (ii) during the Series 2006-1
        Amortization Period, the Series 2006-1 Required Percentage of the sum of
        (x) the
        Series 2006-1 Maximum Invested Amount on the last day of the Series 2006-1
        Revolving Period and (y) if the last day of the Series 2006-1 Revolving Period
        occurred during a Paydown Period, the aggregate Purchaser Group Invested
        Amount
        of any Non-Extending Purchaser Groups on the last day of the Series 2006-1
        Revolving Period plus (b) the sum of:

       

      (i) if
        the
        Three-Month Average Residual Value Loss Ratio with respect to the most recent
        Settlement Date exceeded 12.50%, an amount equal to the product of (a) the
        Series 2006-1 Invested Percentage as of the last day of the Monthly Period
        immediately preceding such Settlement Date and (b) 90% of the amount by which
        the Aggregate Residual Value Amount exceeded the Excess Residual Value Amount,
        in each case, as of that date; plus

       

      (ii) the
        greater of

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

      
        	 	
                (A)

              	
                the
                  sum of: 

              

      

       

      (1)
        an
        amount equal to the product of (x) the Series 2006-1 Invested Percentage
        as of
        the last day of the Monthly Period immediately preceding the most recent
        Settlement Date and (y) the Excess Equipment Amount on such Settlement
        Date;

       

      (2)
        an
        amount equal to the product of (x) the Series 2006-1 Invested Percentage
        as of
        the last day of the Monthly Period immediately preceding the most recent
        Settlement Date and (y) the Excess Forklift Amount on such Settlement Date;
        

       

      (3)
        an
        amount equal to the product of (x) the Series 2006-1 Invested Percentage
        as of
        the last day of the Monthly Period immediately preceding the most recent
        Settlement Date and (y) the Excess Truck Amount on such Settlement
        Date;

       

      (4)
        an
        amount equal to the product of (x) the Series 2006-1 Invested Percentage
        as of
        the last day of the Monthly Period immediately preceding the most recent
        Settlement Date and (y) the Excess Trailer Amount on such Settlement Date;
        and

       

      (5)
        an
        amount equal to the product of (x) the Series 2006-1 Invested Percentage
        as of
        the last day of the Monthly Period immediately preceding the most recent
        Settlement Date and (y) the Excess Truck Body Amount on such Settlement Date;
        or

       

      (B)
        an
        amount equal to the product of (x) the Series 2006-1 Invested Percentage
        as of
        the last day of the Monthly Period immediately preceding such Settlement
        Date
        and (y) the Excess Alternative Vehicle Amount on such Settlement
        Date

       

      ;
        provided,
        however,
        that,
        after the declaration or occurrence of an Amortization Event, the Series
        2006-1
        Required Enhancement Amount shall equal the Series 2006-1 Required Enhancement
        Amount on the date of the declaration or occurrence of such Amortization
        Event.

       

      “Series
        2006-1 Required Investor Noteholders”
means
        Purchaser Groups having Commitment Percentages aggregating 66 2/3% or
        more.

       

      “Series
        2006-1 Required Overcollateralization Amount”
means,
        on any date of determination during an Accrual Period, the amount, if any,
        by
        which the Series 2006-1 Required Enhancement Amount exceeds the sum of (a)
        the
        Series 2006-1 Reserve Account Amount and (b) the amount on deposit in the
        Series
        2006-1 Principal Collection Subaccount on such date (excluding any amounts
        deposited therein pursuant to Section 5A.2(f) during the Monthly Period
        commencing after the first day of such Accrual Period).

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

      “Series
        2006-1 Required Percentage”
means,
        on any date of determination, the Level 2 Required Enhancement Percentage
        as of
        such date unless:

       

      (a) for
        the
        most recent Settlement Date all of the following were true:

       

      (1) the
        Three
        Month Average Charge-Off Ratio was 0.50 % or less;

       

      (2) the
        Twelve Month Average Charge-Off Ratio was 0.25% or less;

       

      (3) the
        Three
        Month Average Residual Value Loss Ratio was 10.00% or less;

       

      (4) the
        Twelve Month Average Residual Value Loss Ratio was 5.00% or less;

       

      (5) the
        Three
        Month Average Paid-In Advance Loss Ratio was 1.00% or less;

       

      (6) the
        Twelve Month Average Paid-In Advance Loss Ratio was 0.50% or less; and

       

      (7) the
        Three
        Month Average Delinquency Ratio was 4.50% or less; 

       

      in
        which
        case, the Series 2006-1 Required Percentage on such date will equal the Level
        1
        Required Enhancement Percentage or

       

      (b) for
        the
        most recent Settlement Date any one of the following was true:

       

      (1) the
        Three
        Month Average Charge-Off Ratio exceeded 0.75%;

       

      (2) the
        Twelve Month Average Charge-Off Ratio exceeded 0.50%;

       

      (3) the
        Three
        Month Average Residual Value Loss Ratio exceeded 12.50%;

       

      (4) the
        Twelve Month Average Residual Value Loss Ratio exceeded 10.00%;

       

      (5) the
        Twelve Month Average Paid-In Advance Loss Ratio exceeded 0.75%; or 

       

      (6) the
        Three
        Month Average Delinquency Ratio exceeded 6.00%;

       

      in
        which
        case, the Series 2006-1 Required Percentage on such date will equal the Level
        3
        Required Enhancement Percentage.

       

      “Series
        2006-1 Required Reserve Account Amount”
means,
        on any date of determination, an amount equal to the greater of (a) the Required
        Reserve Account Amount Percentage as of such date of the Series 2006-1 Invested
        Amount on such date and (b) 1% of the Series 2006-1 Maximum Invested Amount
        on
        (i) during the Series 2006-1 Revolving Period, such date, or (ii) during
        the
        Series 2006-1 Amortization Period, the last day of the Series 2006-1 Revolving
        Period.

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

      “Series
        2006-1 Required Yield Supplement Amount”
means,
        as of any Settlement Date, the excess, if any, of (a) the Series 2006-1 Yield
        Shortfall Amount for such Settlement Date over (b) 70% of the product of
        (x) the
        Series 2006-1 Invested Percentage on such Settlement Date and (y) the Class
        X
        1999-1B Invested Amount as of such Settlement Date (after giving effect to
        any
        increase thereof on such Settlement Date); provided,
        however
        that
        upon the occurrence of a Receivables Purchase Termination Event, the Series
        2006-1 Required Yield Supplement Amount will equal the Series 2006-1 Yield
        Shortfall Amount.

       

      “Series
        2006-1 Reserve Account”
is
        defined in Section
        5A.9(a).

       

      “Series
        2006-1 Reserve Account Amount”
means,
        on any date of determination, the amount on deposit in the Series 2006-1
        Reserve
        Account and available for withdrawal therefrom.

       

      “Series
        2006-1 Reserve Account Surplus”
means,
        on any date of determination, the amount, if any, by which the Series 2006-1
        Reserve Account Amount exceeds the Series 2006-1 Required Reserve Account
        Amount.

       

      “Series
        2006-1 Revolving Period”
means
        the period from and including the Effective Date to but excluding the
        commencement of the Series 2006-1 Amortization Period.

       

      “Series
        2006-1 Servicing Fee”
is
        defined in Section
        6.1.

       

      “Series
        2006-1 Servicing Fee Percentage”
is
        defined in Section
        6.1.

       

      “Series
        2006-1 Settlement Collection Subaccount”
is
        defined in Section
        5A.1(a).

       

      “Series
        2006-1 Subaccounts”
is
        defined in Section
        5A.1(a).

       

      “Series
        2006-1 Supplemental Servicing Fee”
is
        defined in Section
        6.1.

       

      “Series
        2006-1 Weighted Average Yield Shortfall”
means,
        for any Settlement Date, the excess, if any, of (a) the Series 2006-1 Minimum
        Yield Rate for such Settlement Date over (b) the Series 2006-1 Weighted Average
        Yield Shortfall Lease Yield for such Settlement Date.

       

      “Series
        2006-1 Weighted Average Yield Shortfall Lease Yield”
means,
        for any Settlement Date, the quotient of (a) the sum of the product with
        respect
        to each Series 2006-1 Yield Shortfall Lease of (i) the actual or implicit
        finance charge rate applicable to such Series 2006-1 Yield Shortfall Lease
        and
        (ii) the Net Book Value of the Leased Vehicle subject to such Series 2006-1
        Yield Shortfall Lease as of the last day of the immediately preceding Monthly
        Period divided
        by (b)
        the aggregate Net Book Value of the Leased Vehicles subject to all of the
        Series
        2006-1 Yield Shortfall Leases as of the last day of the immediately preceding
        Monthly Period.

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

      “Series
        2006-1 Weighted Average Yield Shortfall Life”
means,
        for any Settlement Date, 50% of the weighted (on the basis of Net Book Value
        of
        the related Leased Vehicle) average Assumed Lease Term of the Series 2006-1
        Yield Shortfall Leases, assuming that all scheduled lease payments are made
        thereon when scheduled and that the Obligors thereunder do not elect to convert
        such Series 2006-1 Yield Shortfall Leases to Fixed Rate Leases, as of the
        last
        day of the immediately preceding Monthly Period.

       

      “Series
        2006-1 Yield Shortfall Amount”
means,
        for any Settlement Date, (i) if the Series 2006-1 Hypothetical Yield Shortfall
        Amount for such Settlement Date is less than the product of (x) the Series
        2006-1 Invested Percentage as of the last day of the immediately preceding
        Monthly Period and (y) 70% of the Class X 1999-1B Invested Amount as of such
        Settlement Date (after giving effect to any increase thereof on such Settlement
        Date), an amount equal to the Series 2006-1 Hypothetical Yield Shortfall
        Amount
        and (ii) otherwise, an amount equal to the product of (x) the Series 2006-1
        Weighted Average Yield Shortfall for such Settlement Date, (y) the aggregate
        Lease Balance of all Series 2006-1 Yield Shortfall Leases as of the last
        day of
        the immediately preceding Monthly Period and (z) the Series 2006-1 Weighted
        Average Yield Shortfall Life for such Settlement Date.

       

      “Series
        2006-1 Yield Shortfall Lease”
means,
        as of any Settlement Date, each Unit Lease that is a Floating Rate Lease
        with an
        actual or implicit finance charge rate of less than the Series 2006-1 Minimum
        Yield Rate as of the last day of the immediately preceding Monthly
        Period.

       

      “Series
        2006-1 Yield Supplement Account”
is
        defined in Section
        5A.10(a).

       

      “Series
        2006-1 Yield Supplement Account Amount”
means,
        on any date of determination, the amount on deposit in the Series 2006-1
        Yield
        Supplement Account and available for withdrawal therefrom.

       

      “Series
        2006-1 Yield Supplement Account Surplus”
means,
        on any date of determination, the amount, if any, by which the Series 2006-1
        Yield Supplement Account Amount exceeds the Series 2006-1 Required Yield
        Supplement Amount.

       

      “Series
        2006-1 Yield Supplement Deficiency”
means,
        on any date of determination, the amount by which the Series 2006-1 Required
        Yield Supplement Account Amount is less than the Series 2006-1 Yield Supplement
        Account Amount.

       

      “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. 

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

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

       

      “Telerate
        Page 3750”
means
        the display page currently so designated on the Moneyline Telerate Service
        (or
        such other as may replace that page on that service for the purpose of
        displaying rate quotations comparable to those currently provided on such
        page
        of such service, as determined by the Administrative Agent).

       

      “Total
        Cash Available”
means,
        for any Settlement Date, the excess, if any, of (a) the sum of (i) the aggregate
        amount of Collections allocated to the Series 2006-1 General Collection
        Subaccount pursuant to Section
        5A.2(a)
        during
        the immediately preceding Monthly Period, (ii) an amount equal to the product
        of
        the average daily Series 2006-1 Invested Percentage during such Monthly Period
        and the amount of the Unit Repurchase Payments paid by the Servicer on such
        Settlement Date, (iii) an amount equal to the product of the average daily
        Series 2006-1 Invested Percentage during such Monthly Period and the amount
        of
        the Monthly Servicer Advance made by the Servicer on such Settlement Date,
        (iv)
        an amount equal to the product of the average daily Series 2006-1 Invested
        Percentage during such Monthly Period and the amount withdrawn from the Gain
        on
        Sale Account pursuant to Section 5.2(e) of the Base Indenture on the Transfer
        Date immediately preceding such Settlement Date and (v) the investment income
        on
        amounts on deposit in the Series 2006-1 Principal Collection Subaccount and
        the
        Series 2006-1 General Collection Subaccount transferred to the Series 2006-1
        Settlement Collection Subaccount on such Settlement Date pursuant to
Section
        5A.1(b)
        over (b)
        the aggregate amount withdrawn from the Series 2006-1 General Collection
        Subaccount and deposited in the Series 2006-1 Principal Collection Subaccount
        pursuant to Section
        5A.2(f)
        during
        the immediately preceding Monthly Period. 

       

      “Tractor”
means
        a
        vehicle designed to pull a Trailer by means of a fifth wheel mounted over
        its
        rear axel.

       

      “Trailer”
means
        a
        truck trailer supported at the rear by its own wheels and at the front by
        a
        fifth wheel mounted to a Tractor.

       

      “Transferee”
is
        defined in Section 12.10(f).

       

      “Transfer
        Supplement”
is
        defined in Section 12.10(c).

       

      “Truck”
means
        a
        vehicle that carries cargo in a body mounted to its chassis rather than in
        a
        Trailer towed by the vehicle.

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

      “Truck
        Body”
means
        the outer shell of a motor vehicle that is mounted to a cab chassis and that
        covers that chassis from the back of the cab to the end of the body. A Vehicle
        shall not be a Truck Body if it also includes the cab.

       

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

      ARTICLE
        2

       

      PURCHASE
        AND SALE OF SERIES 2006-1 INVESTOR NOTES; 

      INCREASES
        AND DECREASES OF SERIES 2006-1 INVESTED AMOUNT

       

      SECTION
        2.1. Purchases
        of the Series 2006-1 Investor Notes.

       

      (a) Initial
        Purchases.
        Subject
        to the terms and conditions of this Indenture Supplement, including delivery
        of
        notice in accordance with Section
        2.3,
        (i)
        each CP Conduit Purchaser may, in its sole discretion, purchase a Series
        2006-1
        Investor Note in an amount equal to all or a portion of its Commitment
        Percentage of the Series 2006-1 Initial Invested Amount on any Business Day
        during the period from the Effective Date to and including the Expiry Date
        with
        respect to the Purchaser Group of which such CP Conduit Purchaser is a member
        (the “Series
        2006-1 Initial Funding Date”),
        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 2006-1 Investor Note in an amount equal to its Commitment
        Percentage of the Series 2006-1 Initial Invested Amount on the Series 2006-1
        Initial Funding Date, each APA Bank with respect to such CP Conduit Purchaser
        shall fund on the Series 2006-1 Initial Funding Date its APA Bank Percentage
        of
        that portion of such Series 2006-1 Investor Note not to be funded by such
        CP
        Conduit Purchaser and (ii) thereafter, (A) if a CP Conduit Purchaser shall
        have
        purchased a Series 2006-1 Investor Note on the Series 2006-1 Initial Funding
        Date, such CP Conduit Purchaser may, in its sole discretion, maintain its
        Series
        2006-1 Investor Note, subject to increase or decrease during the period from
        the
        Effective Date to and including the Expiry Date with respect to the Purchaser
        Group of which such CP Conduit Purchaser is a member, in accordance with
        the
        provisions of this Indenture Supplement and (B) each APA Bank with respect
        to
        such CP Conduit Purchaser shall maintain the Series 2006-1 Investor Note
        with
        respect to the Purchaser Group of which it is a member, subject to increase
        or
        decrease during the period from the Effective Date to and including the Expiry
        Date with respect to such Purchaser Group, in accordance with the provisions
        of
        this Indenture 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 2006-1 Initial Funding Date to the Funding
        Agent
        with respect to such CP Conduit Purchaser for remittance to the Indenture
        Trustee for deposit into the Series 2006-1 Collection Subaccount.

       

      (b) Maximum
        Purchaser Group Invested Amounts.
        Notwithstanding anything to the contrary contained in this Indenture Supplement,
        at no time shall the Purchaser Group Invested Amount with respect to any
        Purchaser Group exceed the Maximum Purchaser Group Invested Amount with respect
        to such Purchaser Group at such time.

       

      (c)  Form
        of Series 2006-1 Investor Notes.
        The
        Series 2006-1 Investor Notes shall be issued in fully registered form without
        interest coupons, substantially in the form set forth in Exhibit A
        hereto.

       

      SECTION
        2.2. Delivery. 

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

      (a) 
        On the
        Series 2006-1 Initial Funding Date, the Issuer shall sign and shall direct
        the
        Indenture Trustee in writing pursuant to Section
        2.4
        of the
        Base Indenture to duly authenticate, and the Indenture Trustee, upon receiving
        such direction, shall so authenticate a Series 2006-1 Investor 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 2006-1 Investor Note to such Funding Agent in accordance
        with such written directions.

       

      (b) 
        The
        Indenture Trustee shall indicate in the Note Register the actual Purchaser
        Group
        Invested Amount outstanding with respect to each Purchaser Group and the
        actual
        Series 2006-1 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
        2006-1 Invested Amount from time to time.

       

      SECTION
        2.3. Procedure
        for Initial Issuance and for Increasing the Series 2006-1 Invested
        Amount.

       

      (a) 
        Subject
        to Section 2.3(c),
        (i) on the Series 2006-1 Initial Funding 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 purchase, a Series 2006-1 Investor 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 Purchaser Group, the CP Conduit Purchaser
        in
        such Purchaser Group may agree, in its sole discretion, and the APA Banks
        in
        such Purchaser Group hereby agree that the Purchaser Group Invested Amount
        with
        respect to such Purchaser Group may be increased by an amount equal to the
        Commitment Percentage of such Purchaser Group of the Increase Amount (an
        “Increase”),
        upon
        the request of the Issuer (each date on which an increase in the Series 2006-1
        Invested Amount occurs hereunder being herein referred to as the “Increase
        Date”
        applicable to such Increase); provided,
        however,
        that
        the Issuer shall have given the Administrative Agent (with a copy to the
        Indenture Trustee) irrevocable written notice (effective upon receipt), by
        telecopy (receipt confirmed), substantially in the form of Exhibit B hereto,
        of
        such request no later than 9:30 A.M., New York City time, on the Business
        Day
        prior to the Series 2006-1 Initial Funding Date or such Increase Date, as
        the
        case may be; provided,
        further,
        that if
        the proposed amount of any Increase (the “Increase
        Amount”)
        will
        be $200,000,000 or more, the Issuer shall have given the Administrative Agent
        written notice thereof no later than 9:30 A.M., New York City time, on the
        second Business Day prior to the proposed Increase Date. Such notice shall
        state
        (x) the Series 2006-1 Initial Funding Date or the Increase Date, as the case
        may
        be, and (y) the initial invested amount (the “Series
        2006-1 Initial Invested Amount”)
        or the
        proposed Increase Amount, as the case may be.

       

      (b) 
        If a CP
        Conduit Purchaser elects not to fund the full amount of the Commitment
        Percentage of its Purchaser Group of the Series 2006-1 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 in such Purchaser Group shall fund its APA Bank
        Percentage of the portion of the Commitment Percentage of such Purchaser
        Group
        of the Series 2006-1 Initial Invested Amount or such Increase, as the case
        may
        be, not funded by such CP Conduit Purchaser.

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

      (c) 
        No
        Purchaser Group shall be required to make the initial purchase of a Series
        2006-1 Investor Note on the Series 2006-1 Initial Funding Date or to increase
        its Purchaser Group Invested Amount on any Increase Date hereunder
        unless:

       

      (i) the
        Series 2006-1 Initial Invested Amount or Increase Amount is equal to $10,000,000
        or an integral multiple of $500,000 in excess thereof;

       

      (ii) after
        giving effect to the initial purchase amount or 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;

       

      (iii) after
        giving effect to the initial purchase amount or Increase Amount, no Series
        2006-1 Allocated Asset Amount Deficiency, Series 2006-1 Liquid Credit
        Enhancement Deficiency or Series 2006-1 Yield Supplement Deficiency would
        have
        occurred and be continuing;

       

      (iv) no
        Amortization Event or Potential Amortization Event shall have occurred and
        be
        continuing; 

       

      (v) all
        of
        the representations and warranties made by each of the Issuer, SPV, Holdings,
        the Origination Trust and the Servicer in each Transaction Document to which
        it
        is a party are true and correct in all material respects on and as of the
        Series
        2006-1 Initial Funding 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

       

      (vi) all
        conditions precedent set forth in Section 11.2 of the Loan Agreement to the
        funding of the Loan, if any, being funded on the Series 2006-1 Initial Funding
        Date or such Increase Date, as the case may be, shall have been
        satisfied.

       

      The
        Issuer’s acceptance of funds in connection with (x) the initial purchase of
        Series 2006-1 Investor Notes on the Series 2006-1 Initial Funding Date and
        (y)
        each Increase occurring on any Increase Date shall constitute a representation
        and warranty by the Issuer to the applicable Purchasers as of the Series
        2006-1
        Initial Funding 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.

       

      (d) 
        If there
        is a Principal Overpayment Amount for any Settlement Date, the Issuer shall
        request an Increase in accordance with Section
        2.3(a)
        in an
        amount equal to such Principal Overpayment Amount effective on such Settlement
        Date. Notwithstanding the provisions of Section
        2.3(c),
        each
        Purchaser Group shall be required to fund its Commitment Percentage of such
        an
        Increase even if the Issuer is unable to satisfy the conditions set forth
        in
clause
        (i),
        (iii),
        (iv)
        or
(vi)
        of
Section
        2.3(c).

       

      (e) 
        Upon
        receipt of any notice required by Section 2.3(a)
        from the
        Issuer, 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
        day
        received. After receipt by any Funding Agent with respect to a Purchaser
        of such
        notice from the Administrative Agent, such Funding Agent shall, except as
        otherwise provided in Section
        2.3(d),
        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 Series 2006-1 Initial Invested Amount or
        the Increase Amount. If such CP Conduit Purchaser elects to fund all or a
        portion of the Commitment Percentage of such Purchaser Group of the Series
        2006-1 Initial Invested Amount or the Increase Amount, as the case may be,
        such
        CP Conduit Purchaser shall pay in immediately available funds such Commitment
        Percentage (or any portion thereof) of the Series 2006-1 Initial Invested
        Amount
        on the Series 2006-1 Initial Funding Date or the amount of such Increase
        on the
        related Increase Date, as the case may be, to the Funding Agent with respect
        to
        such Purchaser Group for deposit into the Series 2006-1 Collection Subaccount.
        If such CP Conduit Purchaser does not fund the full amount of the Commitment
        Percentage of such Purchaser Group of the Series 2006-1 Initial Invested
        Amount
        or the Increase Amount, as the case may be, 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 Series 2006-1 Initial Funding Date or the
        related Increase Date, as the case may be, to the Funding Agent with respect
        to
        such Purchaser Group for deposit in the Series 2006-1 Collection Subaccount.
        

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

      SECTION
        2.4. Sales
        by
        CP Conduit Purchasers of Series 2006-1 Investor 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 2006-1 Note to any Conduit Assignee
        or to
        the APA Bank 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 2006-1 Invested Amount; Optional
        Termination.

       

      (a) 
        On any
        Business Day prior to the occurrence of an Amortization Event, upon the written
        request of the Issuer or the Administrator on behalf of the Issuer, the Series
        2006-1 Invested Amount may be reduced (a “Decrease”)
        by the
        Indenture Trustee’s withdrawing from the Series 2006-1 Principal Collection
        Subaccount, depositing into the Series 2006-1 Distribution Account and
        distributing to the Administrative Agent funds on deposit in the Series 2006-1
        Principal Collection Subaccount on such day in accordance with Section
        5A.7(c)
        in an
        amount not to exceed the amount of such funds on deposit on such day;
provided
        that the
        Administrator shall have given the Administrative Agent (with a copy to the
        Indenture 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 $200,000,000, 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 $200,000,000 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. Upon each Decrease, the Indenture
        Trustee shall indicate in the Note Register such Decrease. Upon receipt of
        any
        notice required by Section 2.5(a)
        from the
        Issuer, 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
        day
        received.

       

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

      (i) 
        On any
        Business Day, the Issuer shall have the right to deliver an irrevocable written
        notice (an “Optional
        Termination Notice”)
        to the
        Administrative Agent, the Indenture Trustee, the Administrator and the Rating
        Agencies in which the Issuer 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 Payment Date not
        less
        than ten Business Days from the date on which such notice is delivered).
        Upon
        receipt of any Optional Termination Notice from the Issuer, the Administrative
        Agent shall promptly notify the Funding Agent with respect to each Purchaser
        Group thereof.

       

      (ii) 
        From and
        after the Optional Termination Date, the Series 2006-1 Amortization Period
        shall
        commence for all purposes under this Indenture Supplement and the other
        Transaction Documents. 

       

      (b) 
        If there
        are funds on deposit in the Series 2006-1 Principal Collection Subaccount
        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 the
        Issuer
        would be permitted under the terms of Section
        2.5(a)
        to
        effect a Decrease with such funds, the Issuer 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) 
        The
        Issuer may from time to time request that any Purchaser Group agree to increase
        its Maximum Purchaser Group Invested Amount. An increase in any Maximum
        Purchaser Group Invested Amount shall be effective hereunder if such Purchaser
        Group shall have agreed to such increase in its Maximum Purchaser Group Invested
        Amount. 

       

      (b) 
        If the
        Issuer desires to extend the Scheduled Expiry Date with respect to the Purchaser
        Groups, the Issuer 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 the Issuer’s
        desire to so extend the Scheduled Expiry Date. Each Funding Agent, on behalf
        of
        its Purchaser Group, shall notify the Administrative Agent and the Issuer
        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
        the Issuer’s request for an extension, the Issuer, 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
        5A.7(c)
        having a
        Purchaser Group Invested Amount equal to the excess of its Purchaser Group
        Invested Amount over the Maximum Purchaser Group Invested Amount that will
        be
        available after the extension of its Scheduled Expiry Date 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.

       

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

      (c) 
        On any
        Business Day during the Series 2006-1 Revolving Period, the Issuer may, upon
        two
        (2) Business Days’ prior written notice to the Administrative Agent (effective
        upon receipt) (with copies to the Administrator and the Indenture Trustee)
        reduce the Series 2006-1 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 2006-1 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 2006-1 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. 

       

      SECTION
        2.7. Interest; Fees.

       

      (a) 
        Interest
        shall be payable on the Series 2006-1 Investor Notes on each Payment Date
        pursuant to Section 5A.5(a).

       

      (b) 
        On any
        Business Day, the Issuer 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 11:00 A.M., New York
        City
        time, one 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 the Purchaser
        Group of which such Match Funding CP Conduit Purchaser is a member 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, the Issuer may, subject
        to Section
        2.7(c),
        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 Banks in such Purchaser
        Group
        of the contents of such notice promptly upon receipt thereof. 

       

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

      (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) the Issuer 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
        the
        Issuer 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 10 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, the Issuer 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
        2006-1 Amortization Period, the Issuer may not select any Eurodollar Period
        that
        does not end on or prior to the next succeeding Payment Date.

       

      (d) On
        any
        Business Day, a Match Funding CP Conduit Purchaser may elect that the Issuer
        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 the Issuer and the Administrative Agent irrevocable written
        notice thereof, which notice must be received by the Issuer 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 elect thereafter
        to
        allow the Issuer 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 the Issuer and the Administrative Agent irrevocable written
        notice thereof, which notice must be received by the Issuer and the
        Administrative Agent at least one Business Day prior to such Business Day.
        Any
        CP Conduit Purchaser making an election to change the manner in which its
        funding costs in respect of its Series 2006-1 Investor 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 2006-1 Investor Note is funded
        on
        both a “pooled” and “match funded” basis and its Monthly Funding Costs during
        that period will be calculated accordingly.

       

      (e) The
        Indenture Trustee (acting at the written direction of the Administrator upon
        which the Indenture Trustee may conclusively rely) shall distribute pursuant
        to
Section
        5A.5(b),
        from
        amounts deposited in the Series 2006-1 Distribution Account pursuant to
Section
        5A.4(c),
        to the
        Administrative Agent, for the account of each Purchaser Group, on each Payment
        Date, a commitment fee with respect to the Series 2006-1 Interest Period
        ending
        on such Payment Date (the “Commitment
        Fee”)
        during
        the period from the Effective Date to and including the Expiry Date with
        respect
        to such Purchaser Group at the Commitment Fee Rate of 102% of the average
        daily
        Maximum Purchaser Group Invested Amount with respect to such Purchaser Group
        during such Series 2006-1 Interest Period less the average daily Purchaser
        Group
        Invested Amount with respect to such Purchaser Group during such Series 2006-1
        Interest Period. The Commitment Fee shall be payable monthly in arrears on
        each
        Payment Date. 

       

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

      (f) Calculations
        of per annum rates under this Indenture 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 LIBO 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 the Issuer and the Administrator.

       

      (a) The
        Issuer agrees to indemnify and hold harmless the Indenture Trustee, the
        Administrative Agent, each Funding Agent, each Purchaser 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 the Issuer pursuant
        to the Indenture or the other Transaction Documents to which it is a party,
        (ii)
        a breach of any representation or warranty made or deemed made by the Issuer
        (or
        any of its officers) in the Indenture or other Transaction Document or (iii)
        a
        failure by the Issuer 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 Transaction 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 (A) resulted from the gross negligence, bad faith or wilful
        misconduct of such Company indemnified person or its officers, directors,
        agents, principals, employees or employers, (B) resulted solely from a
        default by an Obligor with respect to any Sold Unit or Fleet Receivable or
        (C)
        includes any Excluded Taxes; provided
        that any
        payments made by the Issuer pursuant to this Section
        2.8
        shall be
        made solely from funds available therefor pursuant to Section
        5A.5(e),
        shall
        be non-recourse other than with respect to such funds, and shall not constitute
        a claim against the Issuer to the extent that such funds are insufficient
        to
        make such payment.

       

      (b) The
        Administrator agrees to indemnify and hold harmless the Indenture Trustee,
        the
        Administrative Agent, each Funding Agent, each Purchaser and each of their
        respective officers, directors, agents and employees (each, a “Administrator
        indemnified person”)
        from
        and against any Claim by reason of (i) any acts, omissions or alleged acts
        or
        omissions arising out of, or relating to, activities of the Administrator
        pursuant to the Indenture or the other Transaction Documents to which it
        is a
        party, (ii) a breach of any representation or warranty made or deemed made
        by
        the Administrator (or any of its officers) in the Indenture or other Transaction
        Document or (iii) a failure by the Administrator 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 Transaction 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 (A) resulted from the gross negligence,
        bad
        faith or wilful misconduct of such Administrator indemnified person or its
        officers, directors, agents, principals, employees or employers,
        (B) resulted solely from a default by an Obligor with respect to any Sold
        Unit or Fleet Receivable or (C) include any Excluded Taxes.

       

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

      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 2006-1 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
        2006-1 Investor Note registered in the name of such Funding Agent and any
        amounts owing thereunder.

       

      (b) Upon
        receipt of funds from the Administrative Agent on each Payment 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 Banks 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
        3

       

      ARTICLE
        5 OF THE BASE INDENTURE

       

      Sections
        5.1
        through
5.4
        of the
        Base Indenture and each other Section of Article 5 of the Indenture relating
        to
        another Series shall read in their entirety as provided in the Base Indenture
        or
        any applicable Indenture Supplement. Article
        5
        of the
        Base Indenture (except for Sections
        5.1
        through
5.4
        thereof
        and any portion thereof relating to another Series) shall read in its entirety
        as follows and shall be exclusively applicable to the Series 2006-1 Investor
        Notes:

       

      Section
        5A.1 Establishment
        of Series 2006-1 Subaccounts.

       

      
        
          
          

        

        
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      (a) The
        Indenture Trustee shall establish and maintain in the name of the Indenture
        Trustee for the benefit of the Series 2006-1 Investor Noteholders (i) a
        subaccount of the Collection Account (the “Series
        2006-1 Collection Subaccount”);
        and
        (ii) three subaccounts of the Series 2006-1 Collection Subaccount: (1) the
        Series 2006-1 General Collection Subaccount, (2) the Series 2006-1 Principal
        Collection Subaccount and (3) the Series 2006-1 Settlement Collection Subaccount
        (respectively, the “Series
        2006-1 General Collection Subaccount,”
the
        “Series
        2006-1 Principal Collection Subaccount”
and
        the
“Series
        2006-1 Settlement Collection Subaccount”);
        the
        accounts established pursuant to this Section 5A.1(a), collectively, the
“Series
        2006-1 Subaccounts”),
        each
        Series 2006-1 Subaccount to bear a designation indicating that the funds
        deposited therein are held for the benefit of the Series 2006-1 Investor
        Noteholders. The Indenture Trustee shall possess all right, title and interest
        in all moneys, instruments, securities and other property on deposit from
        time
        to time in the Series 2006-1 Subaccounts and the proceeds thereof for the
        benefit of the Series 2006-1 Investor Noteholders. 

       

      (b) So
        long
        as no Amortization Event has occurred, the Issuer shall instruct the institution
        maintaining the Collection Account in writing to invest funds on deposit
        in the
        Series 2006-1 Subaccounts at all times in Permitted Investments selected
        by the
        Issuer (by standing instructions or otherwise); provided,
        however,
        that
        funds on deposit in a Series 2006-1 Subaccounts may be invested together
        with
        funds held in other subaccounts of the Collection Account. Amounts on deposit
        and available for investment in the Series 2006-1 General Collection Subaccount
        and the Series 2006-1 Principal Collection Subaccount shall be invested by
        the
        Indenture Trustee at the written direction of the Issuer, so long as no
        Amortization Event has occurred, in Permitted Investments that mature, or
        that
        are payable or redeemable upon demand of the holder thereof, on or prior
        to the
        next Business Day. On each Settlement Date, all interest and other investment
        earnings (net of losses and investment expenses) on funds deposited in the
        Series 2006-1 Principal Collection Subaccount and the Series 2006-1 General
        Collection Subaccount shall be deposited in the Series 2006-1 Settlement
        Collection Subaccount. The Issuer shall not direct the Indenture 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 principal
        of such Permitted Investment. In the absence of written direction as provided
        hereunder, all funds on deposit in the Collection Account shall remain
        uninvested.

       

      (c) After
        the
        occurrence of an Amortization Event, the Administrative Agent shall instruct
        the
        institution maintaining the Collection Account in writing to invest funds
        on
        deposit in the Series 2006-1 Subaccounts from time to time in Permitted
        Investments selected by the Administrative Agent (by standing instructions
        or
        otherwise). Amounts on deposit and available for investment in the Series
        2006-1
        Subaccounts shall be invested by the Indenture Trustee at the written direction
        of the Administrative Agent in Permitted Investments that mature, or that
        are
        payable or redeemable upon demand of the holder thereof on or prior to the
        Business Day immediately preceding the next Payment Date. On each Settlement
        Date, all interest and other investment earnings (net of losses and investment
        expenses) on funds deposited in the Series 2006-1 General Collection Subaccount
        and the Series 2006-1 Principal Collection Subaccount shall be deposited
        in the
        Series 2006-1 Settlement Collection Subaccount. The Administrative Agent
        shall
        not direct the Indenture 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 principal of such Permitted Investment. In the
        absence
        of written direction as provided hereunder, all funds on deposit shall remain
        uninvested.

       

      
        
          
          

        

        
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      Section
        5A.2 Allocations
        with Respect to the Series 2006-1 Investor Notes.

       

      (a) Prior
        to
        1:00 P.M., New York City time, on each Deposit Date, the Administrator shall
        direct the Indenture Trustee in writing to allocate to the Series 2006-1
        Investor Noteholders and deposit in the Series 2006-1 General Collection
        Subaccount an amount equal to the product of the Series 2006-1 Invested
        Percentage on such Deposit Date and the Collections deposited into the
        Collection Account on such Deposit Date.

       

      (b) The
        Administrator shall direct the Indenture Trustee in writing to allocate to
        the
        Series 2006-1 Investor Noteholders and deposit in the Series 2006-1 General
        Collection Subaccount the following amounts on each Business Day (the
“Series
        2006-1 Daily Principal Allocation”):

       

      (i) the
        proceeds from the initial sale of the Series 2006-1 Investor Notes or any
        Increase; and

       

      (ii) any
        amounts allocated to another Series of Investor Notes that the Issuer or
        the
        Administrator, on behalf of the Issuer, has elected to apply to reduce the
        Series 2006-1 Invested Amount.

       

      (c) On
        each
        Determination Date, the Administrator shall direct the Indenture Trustee
        in
        writing to allocate to the Series 2006-1 Investor Noteholders and deposit
        in the
        Series 2006-1 Settlement Collection Subaccount on the immediately succeeding
        Transfer Date amounts withdrawn from the Gain on Sale Account, in an amount
        equal to the product of the average daily Series 2006-1 Invested Percentage
        during the immediately preceding Monthly Period and the amount withdrawn
        from
        the Gain on Sale Account pursuant to Section
        5.2(e)
        of the
        Base Indenture on such Transfer Date.

       

      (d) On
        each
        Determination Date, the Administrator shall direct the Indenture Trustee
        in
        writing to allocate to the Series 2006-1 Investor Noteholders and deposit
        in the
        Series 2006-1 Settlement Collection Subaccount on the immediately succeeding
        Settlement Date the following amounts:

       

      (i) any
        Unit
        Repurchase Payments made by the Servicer, in an amount equal to the product
        of
        the average daily Series 2006-1 Invested Percentage during the immediately
        preceding Monthly Period and the amount of such Unit Repurchase Payments;
        

       

      (ii) the
        Monthly Servicer Advance made by the Servicer, in an amount equal to the
        product
        of the average daily Series 2006-1 Invested Percentage during the immediately
        preceding Monthly Period and the amount of such Monthly Servicer Advance;
        and

       

      (iii) payments
        made under the Lease Rate Caps maintained by the Issuer pursuant to Section
        5A.12,
        in an
        amount equal to the product of the average daily Series 2006-1 Invested
        Percentage during the immediately preceding Monthly Period and the amount
        of
        such payments.

       

      
        
          
          

        

        
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      (e) On
        each
        Business Day, the Administrator will direct the Indenture Trustee in writing
        to
        allocate, prior to 1:00 P.M., New York City time, the Series 2006-1 Daily
        Principal Allocation deposited in the Series 2006-1 Collection Subaccount
        in the
        following priority:

       

      (i) if
        such
        Business Day is a Settlement Date, allocate to the Series 2006-1 Settlement
        Collection Subaccount, an amount equal to the lesser of (A) the proceeds
        from
        any Increase on such Settlement Date and (B) the Principal Overpayment Amount
        for such Settlement Date; and

       

      (ii) allocate
        any remaining portion of any Increase and any amounts allocated to another
        Series of Investor Notes that the Issuer or the Administrator, on behalf
        of the
        Issuer, has elected to apply to reduce the Series 2006-1 Invested Amount
        to the
        Series 2006-1 Principal Collection Subaccount.

       

      (f) If,
        on
        any Business Day during the Series 2006-1 Revolving Period, other than during
        any Paydown Period, the sum of (i) the Series 2006-1 Daily Principal Allocation
        and (ii) the amount on deposit in the Series 2006-1 Principal Collection
        Subaccount on such Business Day is less than the Daily Principal Utilization
        Amount for such Business Day, the Administrator will direct the Indenture
        Trustee in writing, prior to 1:00 P.M., New York City time, to withdraw an
        amount equal to such deficit from the Series 2006-1 General Collection
        Subaccount and deposit it into the Series 2006-1 Principal Collection
        Subaccount.

       

      (g) The
        Administrator may direct the Indenture Trustee in writing by 1:00 P.M., New
        York
        City time, on any Business Day during the Series 2006-1 Revolving Period
        to
        withdraw amounts on deposit in the Series 2006-1 Principal Collection Subaccount
        for any of the following purposes:

       

      (i) if
        such
        Business Day is a Borrowing Date, to fund all or a portion of the Loan being
        made to Holdings on such Borrowing Date pursuant to the Loan
        Agreement;

       

      (ii) if
        the
        Administrator shall have given the Administrative Agent written notice of
        a
        Decrease in accordance with Section
        2.5(a),
        to
        reduce the Series 2006-1 Invested Amount in accordance with Section
        2.5;
        or

       

      (iii) to
        reduce
        the Invested Amount of any other Series of Investor Notes;

       

      provided,
        however
        that
        during any Paydown Period the Administrator may withdraw amounts on deposit
        in
        the Series 2006-1 Principal Collection Subaccount pursuant to this Section
        5A.2(g)
        only to
        reduce the Purchaser Group Invested Amounts of the Non-Extending Purchaser
        Group
        or Non-Extending Purchaser Groups pursuant to Sections
        2.5(a)
        and
5A.7(c).

       

      (h) On
        any
        Business Day during the Series 2006-1 Amortization Period prior to the
        occurrence of an Amortization Event, the Administrator may direct the Indenture
        Trustee in writing to withdraw amounts on deposit in the Series 2006-1 Principal
        Collection Subaccount and apply them to reduce the Series 2006-1 Invested
        Amount
        in accordance with Section
        2.5; provided,
        that
        the Administrator shall have given the Administrative Agent written notice
        of
        such Decrease in accordance with Section
        2.5(a).

       

      
        
          
          

        

        
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      Section
        5A.3.
        Determination
        of Interest.

       

      (a) On
        each
        Determination Date, the Administrator shall determine the Series 2006-1 Note
        Rate for the Series 2006-1 Interest Rate Period ending on the next succeeding
        Payment Date, based on the information provided by the Funding Agents pursuant
        to this Section
        5A.3(a),
        and the
        amount of interest payable on such next succeeding Payment Date on the Series
        2006-1 Investor Notes (“Series
        2006-1 Monthly Interest”).
        Series 2006-1 Monthly Interest for each Series 2006-1 Interest Period will
        equal
        the product of (i) the Series 2006-1 Note Rate for such Series 2006-1 Interest
        Period, (ii) the average daily Series 2006-1 Invested Amount during such
        Series
        2006-1 Interest Period and (iii) the actual number of days elapsed in such
        Series 2006-1 Interest Period divided
        by 360.
        On each Determination Date, the Funding Agent with respect to each Purchaser
        Group shall provide written notice to the Administrator of the Monthly Funding
        Costs with respect to such Purchaser Group with respect to the portion of
        the
        current Series 2006-1 Interest Period ending on such Determination Date (or,
        in
        the case of the Series 2006-1 Interest Period immediately preceding the Series
        2006-1 Note Termination Date, an estimate of the Monthly Funding Costs with
        respect to such Purchaser Group for such Series 2006-1 Interest Period).
        For the
        purposes of determining Series 2006-1 Monthly Interest for each Series 2006-1
        Interest Period (other than the Series 2006-1 Interest Period immediately
        preceding the Series 2006-1 Note Termination Date), the Administrator may
        make a
        reasonable estimation of the portion of the Monthly Funding Costs with respect
        to each Purchaser Group to accrue during the portion of such Series 2006-1
        Interest Period succeeding such Determination Date, based on its reasonable
        expectations of the Purchaser Group Invested Amount with respect to such
        Purchaser Group during such period, the Discount on the Commercial Paper
        issued
        by, or for the benefit of, such Purchaser Group to fund such Purchaser Group
        Invested Amount during such period or the Adjusted LIBO Rates or the Alternate
        Base Rate applicable to such Purchaser Group Invested Amount during such
        period.
        If the actual amount of the portion of the Monthly Funding Costs with respect
        to
        any Purchaser Group accruing during the portion of any Series 2006-1 Interest
        Period succeeding the Determination Date in such Series 2006-1 Interest Period
        is less than or greater than the amount thereof estimated by the Administrator
        on such Determination Date, the Administrator will reduce or increase the
        Monthly Funding Costs with respect to such Purchaser Group with respect to
        the
        next succeeding Series 2006-1 Interest Period accordingly. The Administrator
        shall determine Series 2006-1 Monthly Interest for the Series 2006-1 Interest
        Period immediately preceding the Series 2006-1 Note Termination Date on the
        Determination Date immediately preceding the last day of such Series 2006-1
        Interest Period based on the information provided by the Funding Agents.
        If a
        Funding Agent with respect to any Purchaser Group determines that the actual
        Monthly Funding Costs with respect to such Purchaser Group for the Series
        2006-1
        Interest Period immediately preceding the Series 2006-1 Note Termination
        Date
        will be more or less than the estimate thereof provided to the Administrator
        and
        informs the Administrator of such variance prior to the Payment Date for
        such
        Series 2006-1 Interest Period, the Administrator will amend the Monthly
        Settlement Statement relating thereto to reflect that variance and provide
        the
        Indenture Trustee, the Administrative Agent and each Funding Agent with an
        amended Monthly Settlement Statement on or prior to such Payment
        Date.

       

      
        
          
          

        

        
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      (b) On
        each
        Determination Date, the Administrator shall determine the excess, if any
        (the
“Interest
        Shortfall”),
        of
        (i) the sum of (x) the Series 2006-1 Monthly Interest for the Series 2006-1
        Interest Period ending on the next succeeding Payment Date and (y) the amount
        of
        any unpaid Interest Shortfall, as of the preceding Payment Date (together
        with
        any Additional Interest on such Interest Shortfall) over
        (ii) the
        amount which will be available to be distributed to the Series 2006-1 Investor
        Noteholders on such Payment Date in respect thereof pursuant to this Indenture
        Supplement. If the Interest Shortfall with respect to any Payment Date is
        greater than zero, an additional amount (“Additional
        Interest”)
        equal
        to the product of (A) the number of days until such Interest Shortfall shall
        be
        repaid divided by
        365 (or
        366, as the case may be), (B) the Alternate Base Rate plus
        2.0% and
        (C) such Interest Shortfall (or the portion thereof which has not been paid
        to
        the Series 2006-1 Investor Noteholders) shall be payable as provided herein
        on
        each Payment Date following such Payment Date, to but excluding the Payment
        Date
        on which such Interest Shortfall is paid to the Series 2006-1 Investor
        Noteholders.

       

      Section
        5A.4.
        Monthly
        Application of Collections.

       

      (a) On
        each
        Settlement Date, the Administrator shall direct the Indenture Trustee in
        writing
        to withdraw from the Series 2006-1 General Collection Subaccount and allocate
        to
        the Series 2006-1 Settlement Collection Subaccount an amount equal to Total
        Cash
        Available for such Settlement Date (less an amount equal to the investment
        income from the Series 2006-1 General Collection Subaccount and the Series
        2006-1 Principal Collection Subaccount transferred to the Series 2006-1
        Settlement Collection Subaccount pursuant to Section
        5A.1(b)).

       

      (b) If
        the
        Administrator determines that the aggregate amount distributable from the
        Series
        2006-1 Settlement Collection Subaccount pursuant to paragraphs
        (i)
        through
(x)
        of
Section
        5A.4(c)
        on any
        Payment Date exceeds the sum of the Total Cash Available for such Payment
        Date
        and the amount to be deposited in the Series 2006-1 Settlement Collection
        Subaccount pursuant to Section
        5A.2(e)(i)
        on such
        Payment Date (the “Deficiency”),
        the
        Administrator shall notify the Indenture Trustee thereof in writing at or
        before
        10:00 A.M., New York City time, on the Business Day immediately preceding
        such
        Payment Date, and the Indenture Trustee shall, by 11:00 A.M., New York City
        time, on such Payment Date, withdraw from the Series 2006-1 Reserve Account
        and
        deposit in the Series 2006-1 Settlement Collection Subaccount an amount equal
        to
        the least of (x) such Deficiency, (y) the product of the average daily Series
        2006-1 Invested Percentage during the immediately preceding Monthly Period
        and
        Aggregate Net Lease Losses for such Monthly Period and (z) the Series 2006-1
        Reserve Account Amount and, to the extent that such amount is less than the
        Deficiency, withdraw from the Series 2006-1 Yield Supplement Account and
        deposit
        in the Series 2006-1 Settlement Collection Subaccount an amount equal to
        the
        lesser of the amount of such insufficiency and the Series 2006-1 Yield
        Supplement Account Amount. If the Deficiency with respect to any Payment
        Date
        exceeds the amounts to be withdrawn from the Series 2006-1 Reserve Account
        and
        the Series 2006-1 Yield Supplement Account pursuant to the immediately preceding
        sentence, the Administrator shall instruct the Indenture Trustee in writing
        at
        or before 10:00 A.M., New York City time, on the Business Day immediately
        preceding such Payment Date, and the Indenture Trustee shall, by 11:00 A.M.,
        New
        York City time, on such Payment Date, withdraw from the Series 2006-1 Reserve
        Account and deposit in the Series 2006-1 Settlement Collection Subaccount
        an
        amount equal to the lesser of (x) the remaining portion of the Deficiency
        and
        (y) the Series 2006-1 Reserve Account Amount (after giving effect to the
        withdrawal described in the immediately preceding sentence).

       

      
        
          
          

        

        
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      (c) On
        each
        Payment Date, based solely on the information contained in the Monthly
        Settlement Statement with respect to Series 2006-1 Investor Notes, the Indenture
        Trustee shall apply the following amounts allocated to, or deposited in,
        the
        Series 2006-1 Settlement Collection Subaccount on such Payment Date in the
        following order of priority:

       

      (i) to
        Holdings, an amount equal to the Series 2006-1 Excess Fleet Receivable Amount,
        if any, for such Payment Date;

       

      (ii) to
        the
        Gain On Sale Account, an amount equal to the Series 2006-1 Monthly Residual
        Value Gain, if any, for such Payment Date;

       

      (iii) to
        the
        Servicer, an amount equal to the Series 2006-1 Monthly Servicer Advance
        Reimbursement Amount for such Payment Date;

       

      (iv) if
        VMS is
        not the Servicer, to the Servicer, an amount equal to the Series 2006-1 Basic
        Servicing Fee for the Series 2006-1 Interest Period ending on such Payment
        Date
plus,
        on the
        first Payment Date following the transfer of the servicing from VMS to a
        successor Servicer pursuant to Section
        9.1
        of the
        Series 1999-1 SUBI Servicing Supplement, to the extent not reimbursed by
        VMS,
        the reasonable costs and expenses of the successor Servicer incurred in
        connection with the transfer of the servicing, in an amount up to
        $250,000;

       

      (v) to
        the
        Series 2006-1 Distribution Account, an amount equal to the Series 2006-1
        Monthly
        Interest payable on such Payment Date plus
        the
        amount of any unpaid Interest Shortfall, as of the preceding Payment Date,
        together with any Additional Interest on such Interest Shortfall (such amount,
        the “Monthly
        Interest Payment”);

       

      (vi) to
        the
        Series 2006-1 Distribution Account, an amount equal to the Commitment Fee
        for
        the Series 2006-1 Interest Period ending on such Payment Date plus
        the
        amount of any unpaid Commitment Fee for any prior Series 2006-1 Interest
        Period
        (such amount, the “Commitment
        Fee Payment”);
        

       

      (vii) if
        VMS is
        the Servicer, to the Servicer, an amount equal to the Series 2006-1 Basic
        Servicing Fee for the Series 2006-1 Interest Period ending on such Payment
        Date;

       

      (viii) to
        the
        Administrator, an amount equal to the Series 2006-1 Administrator Fee for
        the
        Series 2006-1 Interest Period ending on such Payment Date; 

       

      
        
          
          

        

        
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      (ix) to
        the
        Series 2006-1 Distribution Account, an amount equal to the lesser of (A)
        Increased Costs for such Payment Date and (B) the Additional Costs Cap for
        such
        Payment Date; 

       

      (x) (A)
        on
        any Payment Date during the Series 2006-1 Revolving Period, other than during
        any Paydown Period, to the Series 2006-1 Principal Collection Subaccount,
        an
        amount equal to the Series 2006-1 Allocated Asset Amount Deficiency, if any,
        on
        such Payment Date, (B) on any Payment Date during the Series 2006-1 Revolving
        Period and a Paydown Period, to the Series 2006-1 Principal Collection
        Subaccount, an amount equal to the lesser of the Series 2006-1 Principal
        Payment
        Amount for such Payment Date and the aggregate Purchaser Group Invested Amounts
        with respect to the Non-Extending Purchaser Groups on such Payment Date and
        (C)
        on any Payment Date during the period from and including the first day of
        the
        Series 2006-1 Amortization Period to and including the Series 2006-1 Note
        Termination Date, to the Series 2006-1 Principal Collection Subaccount, an
        amount equal to the lesser of the Series 2006-1 Principal Payment Amount
        for
        such Payment Date and the Series 2006-1 Invested Amount on such Payment
        Date;

       

      (xi) to
        the
        Series 2006-1 Reserve Account, to the extent that a Series 2006-1 Liquid
        Credit
        Enhancement Deficiency exists or, on any Payment Date immediately succeeding
        a
        Monthly Period falling in the Series 2006-1 Amortization Period, to the extent
        that a Series 2006-1 Allocated Asset Amount Deficiency exists, an amount
        equal
        to the greater of such deficiencies;

       

      (xii) to
        the
        Series 2006-1 Yield Supplement Account, to the extent that a Series 2006-1
        Yield
        Supplement Deficiency exists (or, will exist after giving effect to any
        reduction in the 1999-1B Invested Amount on such Payment Date), an amount
        equal
        to such deficiency; 

       

      (xiii) to
        the
        Series 2006-1 Distribution Account, an amount equal to the Lease Rate Cap
        Costs
        for such Payment Date;

       

      (xiv) if
        VMS is
        not the Servicer, to the Servicer, an amount equal to any Series 2006-1
        Supplemental Servicing Fee for the Series 2006-1 Interest Period ending on
        such
        Payment Date;

       

      (xv) to
        the
        Series 2006-1 Distribution Account, an amount equal to the excess, if any,
        of
        (A) Increased Costs for such Payment Date over (B) the Additional Costs Cap
        for
        such Payment Date; and

       

      (xvi) to
        the
        Issuer, an amount equal to the balance remaining in the Series 2006-1 Settlement
        Collection Subaccount.

       

      Section
        5A.5 Payment
        of Monthly Interest Payment, Fees and Expenses.

       

      (a) On
        each
        Payment Date, based solely on the information contained in the Monthly
        Settlement Statement with respect to the Series 2006-1 Investor Notes, the
        Indenture Trustee shall, in accordance with Section
        6.1
        of the
        Base Indenture, pay to the Administrative Agent, for the account of the Series
        2006-1 Investor Noteholders, from the Series 2006-1 Distribution Account
        the
        Monthly Interest Payment to the extent of the amount deposited in the Series
        2006-1 Distribution Account for the payment of interest pursuant to Section
        5A.4(c)(v).
        Upon
        the receipt of funds from the Indenture Trustee on each Payment Date on account
        of the Monthly Interest Payment, 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
        immediately succeeding Series 2006-1 Interest Period plus
        the
        amount of any unpaid Interest Shortfall payable to such Purchaser Group as
        of
        the preceding Payment Date, together with any Additional Interest thereon.
        If
        the amount deposited in the Series 2006-1 Distribution Account on any Payment
        Date pursuant to Section
        5A.4(c)(v)
        is less
        than the Monthly Interest Payment on such Payment 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 Monthly Funding Costs with respect to each Purchaser Group with
        respect to the immediately succeeding Series 2006-1 Interest
        Period.

       

      
        
          
          

        

        
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      (b) On
        each
        Payment Date, based solely on the information contained in the Monthly
        Settlement Statement with respect to Series 2006-1 Investor Notes, the Indenture
        Trustee shall pay to the Administrative Agent, for the account of the Series
        2006-1 Investor Noteholders, from the Series 2006-1 Distribution Account
        the
        Commitment Fee Payment for such Payment Date to the extent of the amount
        deposited in the Series 2006-1 Distribution Account for the payment of such
        Commitment Fee Payment pursuant to Section
        5A.4(c)(vi).
        Upon
        the receipt of funds from the Indenture Trustee on each Payment Date on account
        of the Commitment Fee Payment, 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 immediately
        succeeding Series 2006-1 Interest Period plus
        the
        amount of any unpaid Commitment Fee for any prior Series 2006-1 Interest
        Period
        payable to such Purchaser Group. If the amount deposited in the Series 2006-1
        Distribution Account on any Payment Date pursuant to Section
        5A.4(c)(vi)
        is less
        than the Commitment Fee Payment on such Payment 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 with respect
        to the
        immediately succeeding Series 2006-1 Interest Period.

       

      (c) On
        each
        Payment Date, based solely on the information contained in the Monthly
        Settlement Statement with respect to Series 2006-1 Investor Notes, the Indenture
        Trustee shall pay to the Administrative Agent, for the account of the Series
        2006-1 Investor Noteholders, from the Series 2006-1 Distribution Account
        any
        Article 7 Costs due and payable on such Payment Date to any CP Conduit Purchaser
        or any APA Bank to the extent of the amounts deposited in the Series 2006-1
        Distribution Account for the payment of such Article 7 Costs pursuant to
        Sections
        5A.4(c)(ix)
        and
(xv).
        Upon
        the receipt of funds from the Indenture Trustee on any Payment Date on account
        of Article 7 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 deposited in the Series 2006-1 Distribution Account
        on
        any Payment Date pursuant to Section
        5A.4(c)(ix)
        and
(xv)
        are less
        than the Article 7 Costs due and payable on such Payment 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 amounts owing to such CP Conduit Purchasers and APA
        Banks.

       

      
        
          
          

        

        
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      (d) On
        each
        Payment Date, based solely on the information contained in the Monthly
        Settlement Statement with respect to Series 2006-1 Investor Notes, the Indenture
        Trustee shall pay to the Persons owed any other unpaid Program Costs due
        and
        payable on such Payment Date or any amounts due and payable pursuant to
Section
        2.8
        on such
        Payment Date from the Series 2006-1 Distribution Account to the extent of
        the
        amount deposited in the Series 2006-1 Distribution Account for the payment
        of
        such Program Costs pursuant to Sections
        5A.4(c)(ix)
        and
(xv).
        If the
        excess of the amounts deposited in the Series 2006-1 Distribution Account
        on any
        Payment Date pursuant to Section
        5A.4(c)(ix)
        and
(xv)
        over the
        amount of Article 7 Costs due and payable on such Payment Date is less than
        the
        sum of the unpaid Program Costs due and payable on such Payment Date and
        the
        amounts due and payable pursuant to Section
        2.8
        on such
        Payment Date, the Indenture Trustee shall pay the amount available to Persons
        owed such amounts on a pro
        rata
        basis,
        based on the amounts owing to such Persons.

       

      (e) On
        each
        Payment Date, based solely on the information contained in the Monthly
        Settlement Statement with respect to Series 2006-1 Investor Notes, the Indenture
        Trustee shall pay to the Administrative Agent, for the account of the Series
        2006-1 Investor Noteholders, from the Series 2006-1 Distribution Account
        any
        Lease Rate Cap Costs to the extent of the amount deposited in the Series
        2006-1
        Distribution Account for the payment of such Lease Rate Cap Costs pursuant
        to
Sections
        5A.4(c)(xiii).
        Upon
        the receipt of funds from the Indenture Trustee on each Payment Date on account
        of Lease Rate Cap Costs, the Administrative Agent shall pay to each Funding
        Agent with respect to a Purchaser an amount equal to the Lease Rate Cap Costs
        payable to such Purchaser. If the amount deposited in the Series 2006-1
        Distribution Account on any Payment Date pursuant to Section
        5A.4(c)(xiii)
        is less
        than the Lease Rate Cap Costs on such Payment Date, the Administrative Agent
        shall pay the amount available to the Funding Agents, on behalf of the
        Purchasers, on a pro
        rata
        basis,
        based on the Lease Rate Cap Costs payable to each Purchaser.

       

      Section
        5A.6.
        Determination
        of Monthly Principal Payment.

       

      The
        amount (the “Monthly
        Principal Payment”)
        distributable from the Series 2006-1 Principal Collection Subaccount on each
        Payment Date during the Series 2006-1 Amortization Period shall be equal
        to the
        amount on deposit in such account on such Payment Date; provided,
        however,
        that
        the Monthly Principal Payment on any Payment Date shall not exceed the Series
        2006-1 Invested Amount on such Payment Date. Further, on any other Business
        Day
        during the Series 2006-1 Amortization Period prior to the occurrence of an
        Amortization Event, funds may be distributed from the Series 2006-1 Distribution
        Account to the Series 2006-1 Investor Noteholders in accordance with
Section
        5A.7(c).
        On each
        Payment Date during the Series 2006-1 Amortization Period, based solely on
        the
        information contained in the Monthly Settlement Statement with respect to
        the
        Series 2006-1 Investor Notes, the Indenture Trustee shall withdraw from the
        Series 2006-1 Principal Collection Subaccount and deposit in the Series 2006-1
        Distribution Account an amount equal to the Monthly Principal Payment on
        such
        Payment Date.

       

      Section
        5A.7 Payment
        of Principal.

       

      
        
          
          

        

        
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      (a) The
        principal amount of the Series 2006-1 Investor Notes shall be due and payable
        on
        the Final Maturity Date. 

       

      (b) On
        each
        Payment Date during the Series 2006-1 Amortization Period, based solely on
        the
        information contained in the Monthly Settlement Statement with respect to
        Series
        2006-1 Investor Notes, the Indenture Trustee shall, in accordance with
Section
        6.1
        of the
        Base Indenture, pay to the Administrative Agent, for the account of the Series
        2006-1 Investor Noteholders, from the Series 2006-1 Distribution Account
        the
        Monthly Principal Payment. Upon the receipt of funds from the Indenture Trustee
        on any Payment Date on account of the Monthly Principal Payment, the
        Administrative Agent shall pay to each Funding Agent with respect to a Purchaser
        Group, such Purchaser Group’s Pro Rata Share of the Monthly Principal
        Payment.

       

      (c) On
        the
        date of any Decrease, the Indenture Trustee shall pay to the Administrative
        Agent, for the account of the Series 2006-1 Investor Noteholders, from the
        Series 2006-1 Distribution Account the amount of the Decrease indicated in
        the
        request received by the Indenture Trustee pursuant to Section
        2.5(a).
        Upon
        the receipt of funds from the Indenture Trustee (i) on the date of any Decrease
        during the Series 2006-1 Revolving Period, other than during any Paydown
        Period,
        the Administrative Agent shall pay to each Funding Agent with respect to
        a
        Purchaser Group, such Purchaser Group’s Pro Rata Share of the amount of such
        Decrease (including, any amount thereof in excess of the amount required
        on such
        date to reduce the aggregate Purchaser Group Invested Amounts of all
        Non-Extending Purchaser Groups to zero pursuant to clause (ii) of this
Section
        5A.7(c)),
        (ii)
        on the date of any Decrease during the Series 2006-1 Revolving Period and
        a
        Paydown Period, the Administrative Agent shall pay to each Funding Agent
        with
        respect to a Non-Extending Purchaser Group, a pro
        rata
        amount
        of such Decrease, based on the Purchaser Group Invested Amounts with respect
        to
        such Non-Extending Purchaser Groups and (iii) on the date of any Decrease
        during
        the Series 2006-1 Amortization Period, the Administrative Agent shall pay
        to
        each Funding Agent with respect to a Purchaser Group, such Purchaser Group’s Pro
        Rata Share of the 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
        7.4.

       

      Section
        5A.8 The
        Administrator’s Failure to Instruct the Indenture Trustee to Make a Deposit or
        Payment.

       

      When
        any
        payment or deposit hereunder or under any other Transaction Document is required
        to be made by the Indenture Trustee 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. If the Administrator
        fails
        to give notice or instructions to make any payment from or deposit into the
        Collection Account or any subaccount thereof required to be given by the
        Administrator, at the time specified herein or in any other Transaction Document
        (after giving effect to applicable grace periods), the Indenture Trustee
        shall
        make such payment or deposit into or from the Collection Account or such
        subaccount without such notice or instruction from the Administrator;
provided
        that the
        Administrator, upon request of the Indenture Trustee, promptly provides the
        Indenture Trustee with all information necessary to allow the Indenture Trustee
        to make such a payment or deposit. In the event that the Indenture Trustee
        shall
        take or refrain from taking action pursuant to this Section 5A.8.,
        the
        Administrator shall, by 5:00 P.M., New York City time, on any day the Indenture
        Trustee makes a payment or deposit based on information or direction from
        the
        Administrator, provide (i) written confirmation of any such direction and
        (ii)
        written confirmation of all information used by the Administrator in giving
        any
        such direction.

       

      
        
          
          

        

        
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      Section
        5A.9 Series
        2006-1 Reserve Account.

       

      (a) The
        Indenture Trustee shall establish and maintain in the name of the Indenture
        Trustee for the benefit of the Series 2006-1 Investor Noteholders an account
        (the “Series
        2006-1 Reserve Account”),
        bearing a designation clearly indicating that the funds deposited therein
        are
        held for the benefit of the Series 2006-1 Investor Noteholders. The Series
        2006-1 Reserve Account shall be an Eligible Deposit Account; provided
        that, if
        at any time such account is not an Eligible Deposit Account, then the Indenture
        Trustee shall, within 30 days of obtaining knowledge of such ineligibility,
        establish a new Series 2006-1 Reserve Account that is an Eligible Deposit
        Account. If the Indenture Trustee establishes a new Series 2006-1 Reserve
        Account, it shall transfer all cash and investments from the non-qualifying
        Series 2006-1 Reserve Account into the new Series 2006-1 Reserve Account.
        Initially, the Series 2006-1 Reserve Account will be established with JPMorgan
        Chase.

       

      (b) So
        long
        as no Amortization Event has occurred, the Issuer may instruct the institution
        maintaining the Series 2006-1 Reserve Account in writing to invest funds
        on
        deposit in the Series 2006-1 Reserve Account from time to time in Permitted
        Investments selected by the Issuer (by standing instructions or otherwise);
        provided,
        however,
        that
        any such investment shall mature not later than the Business Day prior to
        the
        Payment Date following the date on which such funds were received. After
        the
        occurrence of an Amortization Event, the Administrative Agent shall instruct
        the
        institution maintaining the Series 2006-1 Reserve Account in writing to invest
        funds on deposit in the Series 2006-1 Reserve Account from time to time in
        Permitted Investments selected by the Administrative Agent (by standing
        instructions or otherwise); provided,
        however,
        that
        any such investment shall mature not later than the Business Day prior to
        the
        Payment Date following the date on which such funds were received. In absence
        of
        written direction as provided hereunder, funds on deposit in the Series 2006-1
        Reserve Account shall remain uninvested. 

       

      (c) All
        interest and earnings (net of losses and investment expenses) paid on funds
        on
        deposit in the Series 2006-1 Reserve Account shall be deemed to be on deposit
        and available for distribution.

       

      (d) If
        there
        is a Series 2006-1 Reserve Account Surplus on any Settlement Date, the
        Administrator may notify the Indenture Trustee thereof in writing and instruct
        the Indenture Trustee to withdraw from the Series 2006-1 Reserve Account
        and pay
        to the Issuer, and the Indenture Trustee shall withdraw from the Series 2006-1
        Reserve Account and pay to the Issuer, so long as no Series 2006-1 Allocated
        Asset Amount Deficiency exists or would result therefrom, an amount up to
        the
        lesser of (i) such Series 2006-1 Reserve Account Surplus on such Business
        Day
        and (ii) the Series 2006-1 Reserve Account Amount on such Business
        Day.

       

      
        
          
          

        

        
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      (e) Amounts
        will be withdrawn from the Series 2006-1 Reserve Account in accordance with
        Section
        5A.4(b).

       

      (f) In
        order
        to secure and provide for the repayment and payment of the Issuer Obligations
        with respect to the Series 2006-1 Investor Notes, the Issuer hereby grants
        a
        security interest in and assigns, pledges, grants, transfers and sets over
        to
        the Indenture Trustee, for the benefit of the Series 2006-1 Investor
        Noteholders, all of the Issuer’s right, title and interest in and to the
        following (whether now or hereafter existing or acquired): (i) the Series
        2006-1
        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 2006-1 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 2006-1 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 2006-1
        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 Indenture Trustee and the Series
        2006-1
        Investor Noteholders shall have no interest in any amounts withdrawn from
        the
        Series 2006-1 Reserve Account and paid to the Issuer.

       

      (g) On
        the
        Series 2006-1 Note Termination Date, the Indenture Trustee, acting in accordance
        with the written instructions of the Administrator, shall withdraw from the
        Series 2006-1 Reserve Account and pay to the Issuer all amounts on deposit
        therein. 

       

      Section
        5A.10 Series
        2006-1 Yield Supplement Account.

       

      (a) The
        Indenture Trustee shall establish and maintain in the name of the Indenture
        Trustee for the benefit of the Series 2006-1 Investor Noteholders an account
        (the “Series
        2006-1 Yield Supplement Account”),
        bearing a designation clearly indicating that the funds deposited therein
        are
        held for the benefit of the Series 2006-1 Investor Noteholders. The Series
        2006-1 Yield Supplement Account shall be an Eligible Deposit Account;
provided
        that, if
        such account is not an Eligible Deposit Account, then the Indenture Trustee
        shall, within 30 days of obtaining knowledge of such ineligibility, establish
        a
        new Series 2006-1 Yield Supplement Account that is an Eligible Deposit Account.
        If the Indenture Trustee establishes a new Series 2006-1 Yield Supplement
        Account, it shall transfer all cash and investments from the non-qualifying
        Series 2006-1 Yield Supplement Account into the new Series 2006-1 Yield
        Supplement Account. Initially, the Series 2006-1 Yield Supplement Account
        will
        be established with JPMorgan Chase.

       

      (b) So
        long
        as no Amortization Event has occurred, the Issuer may instruct the institution
        maintaining the Series 2006-1 Yield Supplement Account in writing to invest
        funds on deposit in the Series 2006-1 Yield Supplement Account from time
        to time
        in Permitted Investments selected by the Issuer (by standing instructions
        or
        otherwise); provided,
        however,
        that
        any such investment shall mature not later than the Business Day prior to
        the
        Payment Date following the date on which such funds were received. After
        the
        occurrence of an Amortization Event, the Administrative Agent shall instruct
        the
        institution maintaining the Series 2006-1 Yield Supplement Account in writing
        to
        invest funds on deposit in the Series 2006-1 Yield Supplement Account from
        time
        to time in Permitted Investments selected by the Administrative Agent (by
        standing instructions or otherwise); provided,
        however,
        that
        any such investment shall mature not later than the Business Day prior to
        the
        Payment Date following the date on which such funds were received. In absence
        of
        written direction as provided hereunder, funds on deposit in the Series 2006-1
        Yield Supplement Account shall remain uninvested.

       

      
        
          
          

        

        
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      (c) All
        interest and earnings (net of losses and investment expenses) paid on funds
        on
        deposit in the Series 2006-1 Yield Supplement Account shall be deemed to
        be on
        deposit and available for distribution.

       

      (d) If
        there
        is a Series 2006-1 Yield Supplement Account Surplus on any Settlement Date,
        the
        Administrator may notify the Indenture Trustee thereof in writing and request
        the Indenture Trustee to withdraw from the Series 2006-1 Yield Supplement
        Account and pay to the Issuer, and the Indenture Trustee shall withdraw from
        the
        Series 2006-1 Yield Supplement Account and pay to the Issuer an amount up
        to the
        lesser of (i) such Series 2006-1 Yield Supplement Account Surplus on such
        Business Day and (ii) the Series 2006-1 Yield Supplement Account Amount on
        such
        Business Day.

       

      (e) Amounts
        will be withdrawn from the Series 2006-1 Yield Supplement Account in accordance
        with Section
        5A.4(b).

       

      (f) In
        order
        to secure and provide for the repayment and payment of the Issuer Obligations
        with respect to the Series 2006-1 Investor Notes, the Issuer hereby grants
        a
        security interest in and assigns, pledges, grants, transfers and sets over
        to
        the Indenture Trustee, for the benefit of the Series 2006-1 Investor
        Noteholders, all of the Issuer’s right, title and interest in and to the
        following (whether now or hereafter existing or acquired): (i) the Series
        2006-1
        Yield Supplement 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
        2006-1
        Yield Supplement 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
        2006-1 Yield Supplement 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 2006-1 Yield Supplement 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
        Indenture Trustee and the Series 2006-1 Investor Noteholders shall have no
        interest in any amounts withdrawn from the Series 2006-1 Yield Supplement
        Account and paid to the Issuer.

       

      (g) On
        the
        Series 2006-1 Note Termination Date, the Indenture Trustee, acting in accordance
        with the written instructions of the Administrator, shall withdraw from the
        Series 2006-1 Yield Supplement Account and pay to the Issuer all amounts
        on
        deposit therein. 

       

      
        
          
          

        

        
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      Section
        5A.11 Series
        2006-1 Distribution Account

       

      (a) The
        Indenture Trustee shall establish and maintain in the name of the Indenture
        Trustee for the benefit of the Series 2006-1 Investor Noteholders an account
        (the “Series
        2006-1 Distribution Account”),
        bearing a designation clearly indicating that the funds deposited therein
        are
        held for the benefit of the Series 2006-1 Investor Noteholders. The Series
        2006-1 Distribution Account shall be maintained as an Eligible Deposit Account;
        provided
        that, if
        such account is not an Eligible Deposit Account, then the Indenture Trustee
        shall, within 30 days of obtaining knowledge of such ineligibility, establish
        a
        new Series 2006-1 Distribution Account that is an Eligible Deposit Account.
        If
        the Indenture Trustee establishes a new Series 2006-1 Distribution Account,
        it
        shall transfer all cash and investments from the non-qualifying Series 2006-1
        Distribution Account into the new Series 2006-1 Distribution Account. Initially,
        the Series 2006-1 Distribution Account will be established with JPMorgan
        Chase.

       

      (b) In
        order
        to secure and provide for the repayment and payment of the Issuer Obligations
        with respect to the Series 2006-1 Investor Notes, the Issuer hereby grants
        a
        security interest in and assigns, pledges, grants, transfers and sets over
        to
        the Indenture Trustee, for the benefit of the Series 2006-1 Investor
        Noteholders, all of the Issuer’s right, title and interest in and to the
        following (whether now or hereafter existing or acquired): (i) the Series
        2006-1
        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 2006-1 Distribution
        Account or the funds on deposit therein from time to time; (iv) 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
        2006-1 Distribution Account, the funds on deposit therein from time to time;
        and
        (v) all proceeds of any and all of the foregoing, including,
        without limitation, cash. 

       

      Section
        5A.12 Lease Rate Caps.

       

      (a) The
        Issuer shall have obtained on the Series 2006-1 Closing Date and shall
        thereafter maintain one or more interest rate caps, each from a Series 2006-1
        Eligible Counterparty, having, in the aggregate, a notional amount on the
        Series
        2006-1 Closing Date at least equal to the aggregate Lease Balance of all
        Fixed
        Rate Leases allocated to the Lease SUBI Portfolio as of the Series 2006-1
        Closing Date, plus, in the case of all such Fixed Rate Leases that are
        Closed-End Leases, the aggregate Stated Residual Values of the related Leased
        Vehicles and on each Payment Date thereafter at least equal to the aggregate
        scheduled Lease Balance of all such Fixed Rate Leases as of the last day
        of the
        Monthly Period immediately preceding such Payment Date, plus, in the case
        of all
        such Fixed Rate Leases that are Closed-End Leases, the aggregate Stated Residual
        Values of the related Leased Vehicles, and an effective strike rate based
        on the
        eurodollar rate set forth therein in effect on the dates set forth therein
        at
        the most equal to the weighted average fixed rate of interest on such Fixed
        Rate
        Leases minus 0.46% per annum. 

       

      (b) On
        or
        prior to the date that any Fixed Rate Lease is allocated to the Lease SUBI
        Portfolio on or after the Series 2006-1 Closing Date, the Issuer shall have
        obtained and shall thereafter maintain an interest rate cap from a Series
        2006-1
        Eligible Counterparty having a notional amount equal to the initial Lease
        Balance of such Fixed Rate Lease, plus, in the case of a Closed-End Lease,
        the
        Stated Residual Value of the related Leased Vehicle and on each Payment Date
        thereafter at least equal to the scheduled Lease Balance of such Fixed Rate
        Lease as of the last day of the Monthly Period immediately preceding such
        Payment Date, plus, in the case of a Closed-End Lease, the Stated Residual
        Value
        of the related Leased Vehicle and an effective strike rate based on the
        eurodollar rate set forth therein in effect on the dates set forth therein
        at
        the most equal to the fixed rate of interest on such Fixed Rate Lease minus
        0.46% per annum. 

       

      
        
          
          

        

        
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      (c) On
        or
        prior to each Settlement Date, the Issuer shall have obtained and shall
        thereafter maintain an interest rate cap from a Series 2006-1 Eligible
        Counterparty having a notional amount equal to the aggregate Lease Balance
        of
        each Floating Rate Lease allocated to the Lease SUBI that shall have been
        converted to a Fixed Rate Lease during the immediately preceding Monthly
        Period,
        plus, in the case of a Closed-End Lease, the Stated Residual Value of the
        related Leased Vehicle and on each Payment Date thereafter at least equal
        to the
        scheduled Lease Balance of such newly converted Fixed Rate Lease as of the
        last
        day of the Monthly Period immediately preceding such Payment Date, plus,
        in the
        case of a Closed-End Lease, the Stated Residual Value of the related Leased
        Vehicle and an effective strike rate based on the eurodollar rate set forth
        therein in effect on the dates set forth therein at the most equal to the
        fixed
        rate of interest on such newly converted Fixed Rate Lease minus 0.46% per
        annum.

       

      (d) If
        the
        short-term credit rating of any provider of an interest rate cap required
        to be
        obtained and maintained by the Issuer pursuant to this Section
        5A.12
        falls
        below “A-1” by Standard & Poor’s or “P-1” by Moody’s or the long-term
        unsecured credit rating of any such provider falls below “A+” by Standard &
Poor’s or “Aa3” by Moody’s, the Issuer shall obtain an equivalent interest rate
        cap from a Series 2006-1 Eligible Counterparty within 30 days of such decline
        in
        credit rating unless such provider provides some form of collateral for its
        obligations under its interest rate cap that is reasonably satisfactory to
        the
        Administrative Agent. The Issuer will not permit any interest rate cap required
        to be obtained and maintained by the Issuer pursuant to this Section
        5A.12
        to be
        terminated or transferred in whole or in part unless a replacement interest
        rate
        cap therefor has been provided as described in the immediately preceding
        sentence and, after giving effect thereto, the Issuer has the interest rate
        caps
        required to be obtained and maintained by the Issuer pursuant to this
Section
        5A.12.
        

       

      (e) If
        the
        Issuer fails to obtain or maintain any Lease Rate Cap that it is required
        to
        obtain and maintain in accordance with Sections 5A.12(a),
        (b)
        or
(c)
        or fails
        to replace the Lease Rate Cap of any downgraded provider of an interest rate
        cap
        required to be maintained hereunder in accordance with Section
        5A.12(d)
        or
        otherwise satisfy the provisions of Section
        5A.12(d),
        the
        Administrative Agent, at the expense of the Issuer, acting at the direction
        of
        the Series 2006-1 Required Investor Noteholders, may obtain any such Lease
        Rate
        Cap on commercially reasonable terms. In the alternative, the Administrative
        Agent, at the expense of the Issuer, acting at the direction of the Series
        2006-1 Required Investor Noteholders, may obtain on commercially reasonable
        terms any Hedging Instrument that the Administrative Agent reasonably determines
        will cover the interest rate exposure that would have been covered by the
        Lease
        Rate Cap that the Issuer shall have failed to obtain or maintain hereunder.
        Each
        Series 2006-1 Investor Noteholder hereby agrees to reimburse the Administrative
        Agent, to the extent not reimbursed by the Issuer, for any costs or expenses
        incurred by the Administrative Agent in connection with obtaining any Hedging
        Instruments in accordance with the terms of this Section
        5A.12(e).
        Any
        amounts owing by the Issuer to the Series 2006-1 Investor Noteholders pursuant
        to this Section 5A.12(e) on any Payment Date shall be payable out of funds
        available pursuant to Section
        5A.4(c)(xiii)
        on such
        Payment Date.

       

      
        
          
          

        

        
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      Section
        5A.13 Indenture
        Trustee As Securities Intermediary.
        (a) The
        Indenture Trustee or other Person holding the Series 2006-1 Reserve Account,
        the
        Series 2006-1 Yield Supplement Account or the Series 2006-1 Distribution
        Account
        (each a “Series
        2006-1 Designated Account”)
        shall
        be the “Securities Intermediary”. If the Securities Intermediary in respect of
        any Series 2006-1 Designated Account is not the Indenture Trustee, the Issuer
        shall obtain the express agreement of such Person to the obligations of the
        Securities Intermediary set forth in this Section
        5A.13.
        

       

      (b)
        The
        Securities Intermediary agrees that:

       

      (i) The
        Series 2006-1 Designated Accounts are accounts to which “financial assets”
within the meaning of Section 8-102(a)(9) (“Financial
        Assets”)
        of the
        UCC in effect in the State of New York (the “New
        York UCC”)
        will
        be credited;

       

      (ii) All
        securities or other property underlying any Financial Assets credited to
        any
        Series 2006-1 Designated Account shall be registered in the name of the
        Securities Intermediary, indorsed to the Securities Intermediary or in blank
        or
        credited to another securities account maintained in the name of the Securities
        Intermediary and in no case will any Financial Asset credited to any Series
        2006-1 Designated Account be registered in the name of the Issuer, payable
        to
        the order of the Issuer or specially endorsed to the Issuer;

       

      (iii) All
        property delivered to the Securities Intermediary pursuant to this Indenture
        Supplement will be promptly credited to the appropriate Series 2006-1 Designated
        Account;

       

      (iv) Each
        item
        of property (whether investment property, security, instrument or cash) credited
        to a Series 2006-1 Designated Account shall be treated as a Financial
        Asset;

       

      (v) If
        at any
        time the Securities Intermediary shall receive any order from the Indenture
        Trustee directing transfer or redemption of any Financial Asset relating
        to the
        Series 2006-1 Designated Accounts, the Securities Intermediary shall comply
        with
        such entitlement order without further consent by the Issuer or the
        Administrator;

       

      (vi) The
        Series 2006-1 Designated Accounts shall be governed by the laws of the State
        of
        New York, regardless of any provision of any other agreement. For purposes
        of
        the UCC, New York shall be deemed to the Securities Intermediary’s jurisdiction
        and the Series 2006-1 Designated Accounts (as well as the “securities
        entitlements” (as defined in Section 8-102(a)(17) of the New York UCC) related
        thereto) shall be governed by the laws of the State of New York;

       

      
        
          
          

        

        
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      (vii) The
        Securities Intermediary has not entered into, and until termination of this
        Indenture Supplement, will not enter into, any agreement with any other Person
        relating to the Series 2006-1 Designated Accounts and/or any Financial Assets
        credited thereto pursuant to which it has agreed to comply with entitlement
        orders (as defined in Section 8-102(a)(8) of the New York UCC) of such other
        Person and the Securities Intermediary has not entered into, and until the
        termination of this Indenture Supplement will not enter into, any agreement
        with
        the Issuer purporting to limit or condition the obligation of the Securities
        Intermediary to comply with entitlement orders as set forth in Section
        5A.13(b)(v)
        of this
        Indenture Supplement; and

       

      (viii) Except
        for the claims and interest of the Indenture Trustee and the Issuer in the
        Series 2006-1 Designated Accounts, the Securities Intermediary knows of no
        claim
        to, or interest, in the Series 2006-1 Designated Accounts or in any Financial
        Asset credited thereto. If the Securities Intermediary has actual knowledge
        of
        the assertion by any other person of any lien, encumbrance, or adverse claim
        (including any writ, garnishment, judgment, warrant of attachment, execution
        or
        similar process) against any Series 2006-1 Designated Account or in any
        Financial Asset carried therein, the Securities Intermediary will promptly
        notify the Indenture Trustee, the Administrator, the Administrative Agent
        and
        the Issuer thereof.

       

      (c)
        The
        Indenture Trustee shall possess all right, title and interest in all funds
        on
        deposit from time to time in the Series 2006-1 Designated Accounts and in
        all
        proceeds thereof, and shall be the only person authorized to originate
        entitlement orders in respect of the Series 2006-1 Designated
        Accounts.

       

      

       

      ARTICLE
        4

       

      AMORTIZATION
        EVENTS

       

      If
        any
        one of the following events shall occur with respect to the Series 2006-1
        Investor Notes:

       

      (a) the
        Series 2006-1 Reserve Account shall have become subject to an injunction,
        estoppel or other stay or a Lien (other than a Permitted Lien);

       

      (b) 
        the
        Series 2006-1 Yield Supplement Account shall have become subject to an
        injunction, estoppel or other stay or a Lien (other than a Permitted
        Lien);

       

      (c) 
        a Series
        2006-1 Liquid Credit Enhancement Deficiency shall occur and continue for
        at
        least two Business Days;

       

      (d) 
        a Series
        2006-1 Allocated Asset Amount Deficiency shall occur and continue for at
        least
        two Business Days;

       

      
        
          
          

        

        
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      (e) 
        a Series
        2006-1 Yield Supplement Deficiency shall occur and continue for at least
        two
        Business Days;

       

      (f) 
        the
        Three Month Average Charge-Off Ratio with respect to any Settlement Date
        exceeds
        1.00%;

       

      (g) 
        the
        Three Month Average Paid-In Advance Loss Ratio with respect to any Settlement
        Date exceeds 1.50%;

       

      (h) 
        the
        Three Month Average Delinquency Ratio with respect to any Settlement Date
        exceeds 7.0%;

       

      (i) 
        the Loan
        Principal Amount on any Settlement Date is less than the Aggregate Invested
        Amount on such Settlement Date;

       

      (j) 
        any
        Servicer Termination Event shall occur; 

       

      (k) 
        any
        Termination Event shall occur;

       

      (l) 
        an Event
        of Default with respect to the Series 2006-1 Investor Notes shall
        occur;

       

      (m) 
        an
        Insolvency Event shall occur with respect to SPV, Holdings, the Origination
        Trust, VMS, PHH Sub 1, PHH Sub 2 or PHH;

       

      (n) a
        Lease
        Rate Cap Event shall occur and continue for two Business Days;

       

      (o) the
        failure on the part of the Issuer to pay any Commitment Fee due and payable
        on
        any Payment Date which failure continues unremedied for two Business
        Days;

       

      (p) 
        failure
        on the part of the Issuer (i) to make any payment or deposit required by
        the
        terms of the Indenture (or within the applicable grace period which shall
        not
        exceed two Business Days after the date such payment or deposit is required
        to
        be made) or (ii) duly to observe or perform in any material respect any
        covenants or agreements of the Issuer set forth in the Base Indenture or
        this
        Indenture Supplement (other than any such failure that constitutes a Lease
        Rate
        Cap Event), which failure continues unremedied for a period of 30 days after
        there shall have been given to the Issuer by the Indenture Trustee or the
        Issuer
        and the Indenture Trustee by any Series 2006-1 Investor Noteholder, written
        notice specifying such default and requiring it to be remedied; 

       

      (q) 
        any
        representation or warranty made by the Issuer in the Base Indenture or this
        Indenture Supplement, or any information required to be delivered by the
        Issuer
        to the Indenture Trustee shall prove to have been incorrect in any material
        respect when made or when delivered, which continues to be incorrect in any
        material respect for a period of 30 days after there shall have been given
        to
        the Issuer by the Indenture Trustee or the Issuer and the Indenture Trustee
        by
        any Series 2006-1 Investor Noteholder, written notice thereof;

       

      
        
          
          

        

        
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      (r) 
        the
        Indenture Trustee shall for any reason cease to have a valid and perfected
        first
        priority security interest in the Collateral or any of VMS, the Issuer or
        any
        Affiliate of either thereof shall so assert; 

       

      (s) 
        there
        shall have been filed against PHH, PHH Sub 1, PHH Sub 2, VMS, the Origination
        Trust, Holdings or the Issuer (i) a notice of federal tax Lien from the Internal
        Revenue Service, (ii) a notice of Lien from the PBGC under Section 412(n)
        of the
        Internal Revenue Code or Section 302(f) of ERISA for a failure to make a
        required installment or other payment to a plan to which either of such sections
        applies or (iii) a notice of any other Lien the existence of which could
        reasonably be expected to have a material adverse effect on the business,
        operations or financial condition of such Person, and, in each case, 40 days
        shall have elapsed without such notice having been effectively withdrawn
        or such
        Lien having been released or discharged; 

       

      (t) 
        one or
        more judgments or decrees shall be entered against the Issuer involving in
        the
        aggregate a liability (not paid or fully covered by insurance) of $100,000
        or
        more and such judgments or decrees shall not have been vacated, discharged,
        stayed or bonded pending appeal within 30 days from the entry thereof;
        or

       

      (u) 
        any of
        the Transaction Documents shall cease, for any reason, to be in full force
        and
        effect, other than in accordance with its terms;

       

      then,
        in
        the case of any event described in clause (p) through (u) above, an Amortization
        Event will be deemed to have occurred with respect to the Series 2006-1 Investor
        Notes only, if after the applicable grace period, either the Indenture Trustee
        or the Series 2006-1 Required Investor Noteholders, declare that an Amortization
        Event has occurred with respect to the Series 2006-1 Investor Notes.
        In
        the
        case of any event described in clauses (a) through (o) above, an Amortization
        Event with respect to the Series 2006-1 Investor Notes will be deemed to
        have
        occurred without notice or other action on the part of the Indenture Trustee
        or
        the Series 2006-1 Investor Noteholders.

       

      ARTICLE
        5

       

      OPTIONAL
        PREPAYMENT

       

      The
        Issuer shall have the option to prepay all outstanding Series 2006-1 Investor
        Notes by paying an amount equal to the Series 2006-1 Prepayment Amount. The
        Issuer shall give the Indenture Trustee and the Administrative Agent at least
        ten Business Days’ prior written notice of the date on which the Issuer intends
        to exercise such option to prepay (the “Prepayment
        Date”).
        Upon
        receipt of any notice of a Prepayment Date from the Issuer, the Administrative
        Agent shall promptly notify the Funding Agent with respect to each Purchaser
        Group thereof. Not later than 11:00 A.M., New York City time, on such Prepayment
        Date, the Issuer shall deposit in the Series 2006-1 Distribution Account
        an
        amount equal to the Series 2006-1 Prepayment Amount in immediately available
        funds. The funds deposited into the Series 2006-1 Distribution Account will
        be
        paid by the Indenture Trustee to the Administrative Agent, for the account
        of
        the Series 2006-1 Investor Noteholders, on such Prepayment Date. Upon the
        receipt of funds from the Indenture Trustee on any Prepayment Date, the
        Administrative Agent shall pay to each Funding Agent with respect to a
        Purchaser, the portion of the Series 2006-1 Prepayment Amount owing to such
        Purchaser.

       

      
        
          
          

        

        
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      ARTICLE
        6

       

      SERVICING
        AND ADMINISTRATOR FEES

       

      SECTION
        6.1. Servicing
        Fee.
        A
        periodic servicing fee (the “Series
        2006-1 Basic Servicing Fee”)
        shall
        be payable to the Servicer on each Payment Date for the preceding Monthly
        Period
        in an amount equal to the product of (a) 0.215% per annum (the “Series
        Servicing Fee Percentage”)
        times
        (b) the daily average of the Series 2006-1 Allocated Adjusted Aggregate Unit
        Balance for such Monthly Period times (c) the number of days in such Monthly
        Period divided
        by 365
        (or 366, as applicable) days; provided,
        however
        that if
        VMS is not the Servicer, the servicing fee payable to the Servicer on each
        Payment Date hereunder may be increased such that the sum of the Series 2006-1
        Basic Servicing Fee and the additional servicing fee payable to the Servicer
        hereunder (the “Series
        2006-1 Supplemental Servicing Fee”)
        for
        each Monthly Period equals 110% of the costs to the successor Servicer of
        servicing the portion of the Lease SUBI Portfolio allocated to Series 2006-1
        during such Monthly Period. For this purpose, the portion of the Lease SUBI
        Portfolio allocated to Series 2006-1 for each Monthly Period shall equal
        the
        average Series 2006-1 Invested Percentage during such Monthly Period. The
        Series
        2006-1 Basic Servicing Fee and any Series 2006-1 Supplemental Servicing Fee
        shall be payable to the Servicer on each Payment Date pursuant to Section
        5A.4(c).

       

      SECTION
        6.2. Administrator
        Fee.
        A
        periodic fee (the “Series
        2006-1 Administrator Fee”)
        shall
        be payable to the Administrator on each Payment Date for the preceding Monthly
        Period in an amount equal to the product of (a) 0.01% per annum times (b)
        the
        daily average of the Series 2006-1 Allocated Adjusted Aggregate Unit Balance
        for
        such Monthly Period times (c) the number of days in such Monthly Period
divided
        by 365
        (or 366, as applicable) days. The Series 2006-1 Administrator Fee shall be
        payable to the Administrator on each Payment Date pursuant to Section
        5A.4(c)(viii).

       

      ARTICLE
        7

       

      CHANGE
        IN CIRCUMSTANCES

       

      SECTION
        7.1. Illegality.
        Notwithstanding any other provision herein, if any Change in Law shall make
        it
        unlawful for any Purchaser Group to make or maintain any portion of the
        Purchaser Group Invested Amount with respect to such Purchaser Group allocated
        to a Eurodollar Tranche and such Purchaser Group shall notify in writing
        the
        Administrative Agent, the Funding Agent with respect to such Purchaser Group,
        the Indenture Trustee and the Issuer, then the portion of such Purchaser
        Group
        Invested Amount allocated to Eurodollar Tranches shall thereafter be calculated
        by reference to the Alternate Base Rate. If any such change in the method
        of
        calculating interest occurs on a day which is not the last day of the Eurodollar
        Period with respect to any Eurodollar Tranche, the Issuer shall pay to such
        Purchaser Group the amounts, if any, as may be required pursuant to Section
        7.4.

       

      
        
          
          

        

        
          55

          
            

          

        

        
          
          

        

      

      SECTION
        7.2. Increased Costs.

       

      (a) 
        If any
        Change in Law (except with respect to Taxes which shall be governed by
Section
        7.3)
        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

       

      (ii) 
        impose
        on any Affected Party or the London interbank market any other condition
        affecting the Transaction 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 the Issuer 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, the Issuer
        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 7.2
        shall be
        delivered to the Issuer (with a copy to the Administrative Agent and the
        Funding
        Agent with respect to such Affected Party) and shall be conclusive absent
        manifest error. The agreements in this Section shall survive the termination
        of
        this Indenture 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 7.2
        shall
        not constitute a waiver of such Affected Party’s right to demand such
        compensation; provided
        that the
        Issuer shall not be required to compensate any Affected Party pursuant to
        this
Section 7.2
        for any
        increased costs or reductions incurred more than 270 days prior to the date
        that
        such Affected Party notifies the Issuer 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.

       

      
        
          
          

        

        
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      SECTION
        7.3. Taxes.

       

      (a) 
        Any and
        all payments by or on account of any obligation of the Issuer hereunder shall
        be
        made free and clear of and without deduction for any Indemnified Taxes or
        Other
        Taxes; provided
        that if
        the Issuer shall be required to deduct any Indemnified Taxes or Other Taxes
        from
        such payments, then (i) subject to Section
        7.3(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 7.3)
        the
        recipient receives an amount equal to the sum that it would have received
        had no
        such deductions been made, (ii) the Issuer shall make such deductions and
        (iii)
        the Issuer shall pay the full amount deducted to the relevant Governmental
        Authority in accordance with applicable law. 

       

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

       

      (c) 
        The
        Issuer 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 Payment 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 the Issuer hereunder or under
        any
        other Transaction Document (including Indemnified Taxes or Other Taxes imposed
        or asserted on or attributable to amounts payable under this Section 7.3)
        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
        7.3(c)
        or
        required to pay additional amounts under the proviso of Section
        7.3(a)
        to the
        extent that the reason for such indemnification results from the failure
        by such
        Person to comply with the provisions of Section
        7.3(e)
        or
(g).
        A
        certificate as to the amount of such payment or liability delivered to the
        Issuer 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 the Issuer pursuant to this Section
        7.3
        shall be
        made solely from funds available therefor pursuant to Section
        5A.4(c),
        shall
        be non-recourse other than with respect to such funds, and shall not constitute
        a claim against the Issuer to the extent that insufficient funds exist to
        make
        such payment. The agreements in this Section shall survive the termination
        of
        this Indenture 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 the
        Issuer to a Governmental Authority, the Issuer 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 under this
        Indenture Supplement and the Base Indenture shall (to the extent legally
        able to
        do so) deliver to the Issuer (with a copy to the Administrative Agent) such
        properly completed and executed documentation prescribed by applicable law
        and
        reasonably requested by the Issuer 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) 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.

       

      (f) 
        If the
        Administrative Agent, any Funding Agent, any Program Support Provider or
        any
        member of a Purchaser Group receives a refund solely in respect of Indemnified
        Taxes or Other Taxes, it shall pay over such refund to the Issuer to the
        extent
        that it has already received indemnity payments or additional amounts pursuant
        to this Section
        7.3
        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
        the Issuer shall, upon request of the Administrative Agent, such Funding
        Agent,
        such Program Support Provider or such member of a 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 a Purchaser Group if the Administrative Agent,
        such
        Funding Agent, such Program Support Provider or such member of a 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 a Purchaser Group to make its tax
        returns (or any other information relating to its taxes which it deems
        confidential) available to the Issuer 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 the Issuer 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 2006-1 Notes
        and
        this Indenture Supplement;

       

      (ii) deliver
        to the Issuer 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 2006-1 Notes and this Indenture 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 the Issuer; and

       

      
        
          
          

        

        
          57

          
            

          

        

        
          
          

        

      

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

       

      unless,
        in any such case, any change in treaty, law or regulation has occurred after
        the
        Series 2006-1 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 the Issuer and the Administrative
        Agent.

       

      (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
        7.3 (g).

       

      SECTION
        7.4.  Break
        Funding Payments.
        The
        Issuer 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) default by the Issuer in making a borrowing
        of,
        conversion into or continuation of a CP Tranche or a Eurodollar Tranche after
        the Issuer has given irrevocable notice requesting the same in accordance
        with
        the provisions of this Indenture Supplement, or (b) default by the Issuer
        in
        making any prepayment in connection with a Decrease after the Issuer has
        given
        irrevocable notice thereof in accordance with the provisions of Section
        2.5
        or (c)
        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. 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 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 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 make a borrowing, a default in making a Decrease or the making of a Decrease
        in an amount or on a date not contained in a notice of Decrease; provided
        that
        any payments made by the Issuer pursuant to this subsection shall be made
        solely
        from funds available therefor pursuant to Section
        5A.4(c),
        shall
        be non-recourse other than with respect to such funds, and shall not constitute
        a claim against the Issuer to the extent that such funds are insufficient
        to
        make such payment. This covenant shall survive the termination of this Indenture
        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 the Issuer shall be conclusive absent manifest
        error.

       

      
        
          
          

        

        
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      SECTION
        7.5.  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 Purchaser Group that the Adjusted
        LIBO
        Rate for such Eurodollar Period will not adequately and fairly reflect the
        cost
        to such Purchaser Group of making or maintaining the Eurodollar Tranches
        during
        such Eurodollar Period,

       

      then
        the
        Administrative Agent shall promptly give telecopy or telephonic notice thereof
        to the Issuer and the Indenture Trustee, whereupon until the Administrative
        Agent notifies the Issuer and the Indenture 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 such Purchaser Group (in the case of clause (b) above) shall
        not
        be allocated to any Eurodollar Tranche.

       

      SECTION
        7.6.  Mitigation
        Obligations.
        If an
        Affected Party requests compensation under Section
        7.2,
        or if
        the Issuer 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
        7.3,
        then,
        upon written notice from the Issuer, 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
        7.2
        or
7.3,
        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. The Issuer 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.

       

      
        
          
          

        

        
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      ARTICLE
        8

       

      REPRESENTATIONS
        AND WARRANTIES, COVENANTS

       

      SECTION
        8.1.  Representations
        and Warranties of the Issuer and VMS.  The
        Issuer and VMS each hereby represents and warrants to the Indenture Trustee,
        the
        Administrative Agent, each Funding Agent, each CP Conduit Purchaser and each
        APA
        Bank that:

       

      (a) 
        each and
        every of their respective representations and warranties contained in the
        Transaction Documents is true and correct as of the Series 2006-1 Closing
        Date,
        as of the Series 2006-1 Initial Funding Date and as of the date of each
        Increase; and

       

      (b) 
        as of
        the Series 2006-1 Closing Date, they have not engaged, in connection with
        the
        offering of the Series 2006-1 Investor Notes, in any form of general
        solicitation or general advertising within the meaning of Rule 502(c) under
        the
        Securities Act.

       

      SECTION
        8.2.  Covenants
        of the Issuer and VMS. The
        Issuer and VMS 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 Transaction Documents to which each is a party;

       

      (b) they
        shall afford each Funding Agent with respect to a Purchaser Group, the Indenture
        Trustee or any representatives of any such Funding Agent or the Indenture
        Trustee access to all records relating to the Loans, the SUBI Certificates,
        the
        Sold Units and the Fleet Receivables at any reasonable time during regular
        business hours, upon reasonable prior notice (and without prior notice if
        an
        Amortization Event has occurred), for purposes of inspection and shall permit
        such Funding Agent, the Indenture Trustee or any representative of such Funding
        Agent or the Indenture Trustee to visit any of the Issuer’s or VMS’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 the Issuer or VMS with their respective
        officers and employees and with their independent certified public accountants;
        and

       

      (c) 
        they
        shall not take any action, nor permit Holdings, to take any action, requiring
        the satisfaction of the Rating Agency Condition pursuant to any Transaction
        Document without the prior written consent of the Series 2006-1 Required
        Investor Noteholders.

       

      SECTION
        8.3.  Covenants
        of the Administrator.  The
        Administrator hereby agrees that:

       

      (a) 
        it shall
        provide to the Indenture Trustee, the Administrative Agent and each Funding
        Agent, on each Determination Date, a Monthly Settlement Statement, substantially
        in the form of Exhibit C, setting forth as of the last day of the most recent
        Monthly Period and for such Monthly Period the information set forth therein;
        

       

      
        
          
          

        

        
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      (b) 
        it shall
        provide to the Administrative Agent simultaneously with delivery to the
        Indenture Trustee, all reports, notices, certificates, statements and other
        documents required to be delivered to the Indenture Trustee pursuant to the
        Base
        Indenture and the other Transaction Documents, and furnish to the Administrative
        Agent promptly after receipt thereof a copy of each notice, demand or other
        material communication (excluding routine communications) received by or
        on
        behalf of the Issuer or the Administrator with respect to the Transaction
        Documents. The Administrative Agent shall distribute to the Funding Agents
        copies of all reports, notices, certificates, statements and other documents
        delivered to it pursuant to this Section
        8.3(b);
        

       

      (c) on
        or
        prior to any Series Closing Date, it shall provide to each Funding Agent
        a copy
        of the Indenture Supplement relating to the Series of Investor Notes being
        issued on such Series Closing Date;

       

      (d) it
        shall
        provide each Funding Agent with prompt written notice of (i) the downgrade
        by
        any Rating Agency of the rating assigned by such Rating Agency to any Series
        of
        Outstanding Investor Notes or the determination by any Rating Agency to put
        the
        rating assigned by such Rating Agency to any Series of Outstanding Investor
        Notes on a watch list and (ii) the occurrence of an Amortization Event or
        Potential Amortization Event with respect to any Series of Outstanding Investor
        Notes; and

       

      (e) 
        it shall
        provide to each Funding Agent copies of all reports relating to the Series
        2006-1 Investor Notes delivered to the Rating Agencies.

       

      SECTION
        8.4.  Obligations
        Unaffected.  The
        obligations of the Issuer and the Administrator to the Funding Agent and
        the
        Purchaser Groups under this Indenture Supplement shall not be affected by
        reason
        of any invalidity, illegality or irregularity of any of the Loans, the SUBI
        Certificates, the Sold Units or the Fleet Receivables.

       

      ARTICLE
        9

       

      CONDITIONS
        PRECEDENT

       

      SECTION
        9.1.  Conditions
        Precedent to Effectiveness of Indenture Supplement.  This
        Indenture Supplement shall become effective on the date (the “Effective Date”)
        on which the following conditions precedent have been satisfied:

       

      (a) Documents.
        The
        Administrative Agent shall have received an original copy 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 the Issuer and the Indenture Trustee, (ii) the Loan
        Agreement, executed by a duly authorized officer of each of the Issuer and
        Holdings, (iii) this Indenture Supplement, executed by a duly authorized
        officer
        of each of the Issuer, the Administrator, the Indenture Trustee, the
        Administrative Agent, the Funding Agents, the CP Conduit Purchasers and the
        APA
        Banks, (iv) the Administration Agreement, executed by a duly authorized officer
        of each of the Issuer, Holdings, the Indenture Trustee and the Administrator,
        (v) each of the Origination Trust Documents, executed by duly authorized
        officers of each of the parties thereto and (vi) any other Transaction Documents
        to be executed in connection with Series 2006-1, each duly executed by the
        parties thereto.

       

      
        
          
          

        

        
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      (b) Corporate
        Documents; Proceedings of the Issuer, the Administrator, SPV, Holdings, the
        Origination Trust, PHH, the Intermediary and the Servicer.
        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 the Issuer, the Administrator, SPV, Holdings, PHH,
        PHH
        Sub 1, PHH Sub 2, the Intermediary, the Origination Trust, VMS and the Servicer
        true and complete copies of:

       

      (i) to
        the
        extent applicable, the certificate of incorporation, certificate of trust
        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 each of the Issuer,
        the Administrator, SPV, Holdings, PHH, PHH Sub 1, PHH Sub 2, the Intermediary,
        the Origination Trust and VMS, dated the Effective Date and certifying (A)
        that
        attached thereto is a true and complete copy of the limited liability company
        agreement or by-laws, as applicable, of such Person, as in effect on the
        Effective Date and at all times since a date prior to the date of the
        resolutions described in clause (B) below, (B) that attached thereto is a
        true
        and complete copy of the resolutions, in form and substance reasonably
        satisfactory to the Funding Agent, of the managers or directors of such Person
        or committees thereof authorizing the execution, delivery and performance
        of the
        Transaction 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
        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 any Transaction
        Documents or any other document delivered in connection herewith or therewith
        on
        behalf of such Person; 

       

      (iii) a
        certificate of the Secretary or an Assistant Secretary of each of the Common
        Member, PHH Sub 1 and the Delaware Trustee, dated the Effective Date and
        certifying as to the incumbency and specimen signature of each officer or
        authorized signatory executing any Transaction Documents or any other document
        delivered in connection herewith or therewith on behalf of such Person;
        and

       

      
        
          
          

        

        
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      (iv) 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) or (iii) above.

       

      (c) Good
        Standing Certificates.
        The
        Administrative Agent shall have received copies of certificates of compliance,
        of status or of good standing, dated as of a recent date, from the Secretary
        of
        State or other appropriate authority of such jurisdiction, with respect to
        the
        Issuer, the Administrator, SPV, Holdings, and the Origination Trust in each
        State where the ownership, lease or operation of property or the conduct
        of
        business requires it to qualify as a foreign corporation, except where the
        failure to so qualify would not have a material adverse effect on the business,
        operations, properties or condition (financial or otherwise) of the Issuer,
        the
        Administrator, SPV, Holdings, or the Origination Trust, as the case may
        be.

       

      (d) Consents,
        Licenses, Approvals, Etc.
        The
        Administrative Agent shall have received, with a counterpart for each CP
        Conduit
        Purchaser and the Funding Agent and the APA Banks with respect to such CP
        Conduit Purchaser, certificates dated the date hereof of an Authorized Officer
        of the Issuer, the Administrator, SPV, Holdings, the Origination Trust and
        the
        Servicer either (i) attaching copies of all material consents, licenses and
        approvals required in connection with the execution, delivery and performance
        by
        the Issuer, the Administrator, SPV, Holdings, the Origination Trust and the
        Servicer of the Transaction Documents to which it is a party and the validity
        and enforceability of the Transaction Documents to which it is a party against
        the Issuer, the Administrator, SPV, Holdings, the Origination Trust and the
        Servicer, respectively, and such consents, licenses and approvals shall be
        in
        full force and effect or (ii) stating that no such consents, licenses or
        approvals are so required.

       

      (e) No
        Litigation.
        The
        Administrative Agent shall have received confirmation that there is no pending
        or, to their knowledge after due inquiry, threatened action or proceeding
        affecting the Issuer, the Administrator, SPV, Holdings, the Origination Trust,
        the Servicer, PHH or any of its Subsidiaries before any Governmental Authority
        that could reasonably be expected to have a Material Adverse
        Effect.

       

      (f) Lien
        Searches.
        The
        Administrative Agent shall have received a written search report listing
        all
        effective financing statements that name VMS, the Origination Trust, Holdings,
        SPV or the Issuer as debtor or assignor and that are filed in the jurisdictions
        in which filings were made pursuant to paragraph (g) below and in any other
        jurisdictions that the Administrative Agent determines are necessary or
        appropriate, together with copies of such financing statements (none of which,
        except for those described in paragraph (g) below shall cover any portion
        of the
        Series 2006-1 Collateral), and tax and judgment lien searches showing no
        such
        liens that are not permitted by the Transaction Documents.

       

      (g) UCC
        Certificate.
        The
        Administrative Agent shall have received from each of VMS, the Origination
        Trust, Holdings and the Issuer a certificate, substantially in the form of
        Exhibit D, completed in a manner satisfactory to the Administrative Agent,
        duly
        executed by an Authorized Officer of each of VMS, the Origination Trust,
        Holdings and the Issuer and dated the Series 2006-1 Closing Date.

       

      
        
          
          

        

        
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      (h) Filings,
        Registrations and Recordings.
        The
        SUBI Certificates shall have been registered in the name of the Issuer and
        delivered to the Indenture Trustee, endorsed in blank, and any documents
        (including, without limitation, financing statements) required to be filed
        in
        order (i) to create, in favor of the Indenture Trustee, a perfected security
        interest in the Collateral with respect to which a security interest may
        be
        perfected by a filing under the UCC or other comparable statute, (ii) to
        create
        in favor of the Issuer a perfected security interest in the Loan Collateral
        with
        respect to which a security interest may be perfected by filing under the
        UCC or
        other comparable statute, (iii) to create in favor of the Origination Trust
        perfected ownership/security interest in the assets transferred thereto pursuant
        to the Contribution Agreement, (iv) to create in favor of Holdings a perfected
        ownership interest in the Fleet Receivables under the Receivables Purchase
        Agreement and (v) to create in favor of the Indenture Trustee a perfected
        security interest in the Series 2006-1 Collateral with respect to which a
        security interest may be perfected by a filing under the UCC or other comparable
        statute shall, in each case, have been properly prepared and executed for
        immediate filing in each office in each jurisdiction listed in the UCC
        Certificate referred to in paragraph (g) above, and such filings are the
        only
        filings required in order to perfect the security interest of the Indenture
        Trustee in the Series 2006-1 Collateral, the security interest of the Issuer
        in
        the Loan Collateral, the transfer of the Fleet Receivables, Leases, Vehicles
        and
        other assets to the Origination Trust pursuant to the Contribution Agreement,
        the transfer of the Fleet Receivables to Holdings pursuant to the Receivables
        Purchase Agreement or the transfer of the Series 2006-1 Collateral to the
        Indenture Trustee, as the case may be. The Administrative Agent shall have
        received evidence reasonably satisfactory to it of each such filing,
        registration or recordation and reasonably satisfactory evidence of the payment
        of any necessary fee, tax or expense relating thereto.

       

      (i) 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 Indenture Trustee,
        opinions of counsel to the Issuer, Holdings, SPV, the Origination Trust,
        the
        Intermediary and the Administrator, dated the Series 2006-1 Closing Date,
        as to
        due organization of the Origination Trust, Holdings, SPV, the Administrator,
        the
        Intermediary and the Issuer, bankruptcy (“true sale” and “non-substantive
        consolidation”), perfection and priority of security interests in the Series
        2006-1 Collateral, creation and perfection of the security interests in the
        Loan
        Collateral, including the SUBI Certificates and the Sold Units and the Fleet
        Receivables, the characterization of the Series 2006-1 Investor Notes as
        debt
        for U.S. federal income tax purposes, the characterization of the Issuer
        not as
        an association or a publicly traded partnership taxable as a corporation
        for
        U.S. federal income tax purposes and other matters, in each case, in form
        and
        substance acceptable to the addressees thereof and their respective
        counsel.

       

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

       

      (k) Establishment
        of Accounts.
        The
        Administrative Agent shall have received evidence reasonably satisfactory
        to it
        that the Collection Account (including the Series 2006-1 Subaccounts), the
        Series 2006-1 Reserve Account, the Series 2006-1 Yield Supplement Account
        and
        the Series 2006-1 Distribution Account shall have been established in accordance
        with the terms and provisions of the Indenture.

       

      
        
          
          

        

        
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      (l) Lease
        Rate Caps.
        The
        Indenture Trustee shall have received copies of the Lease Rate Caps duly
        executed by the parties thereto satisfying the requirements of Section
        5A.12
        on the
        Series 2006-1 Closing Date.

       

      (m) Material
        Adverse Change.
        No
        material adverse change shall have occurred with respect to the business,
        operations, property or condition (financial or otherwise) of PHH and its
        Subsidiaries taken as a whole since September 30, 2005.

       

      (n) Opinion.
        The
        Administrative Agent shall have received an opinion of counsel to the Indenture
        Trustee as to the due authorization, execution and delivery by the Indenture
        Trustee of this Indenture Supplement and the due execution, authentication
        and
        delivery by the Indenture Trustee of the Series 2006-1 Investor
        Notes.

       

      ARTICLE
        10

       

      THE
        ADMINISTRATIVE AGENT

       

      SECTION
        10.1.  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 Indenture Supplement and irrevocably authorizes the
        Administrative Agent, in such capacity, to take such action on its behalf
        under
        the provisions of this Indenture Supplement and to exercise such powers and
        perform such duties as are expressly delegated to the Administrative Agent
        by
        the terms of this Indenture Supplement, together with such other powers as
        are
        reasonably incidental thereto. Notwithstanding any provision to the contrary
        elsewhere in this Indenture 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 Indenture Supplement or
        otherwise exist against the Administrative Agent. 

       

      SECTION
        10.2.  Delegation
        of Duties.  The
        Administrative Agent may execute any of its duties under this Indenture
        Supplement by or through agents or attorneys-in-fact and shall be entitled
        to
        advice of counsel (who may be counsel for the Issuer or the Administrator),
        independent public accountants and other experts selected by it 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
        10.3.  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 or this Indenture Supplement (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 the Issuer, the Administrator or any officer thereof contained in
        this
        Indenture Supplement or any other Transaction 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 Indenture
        Supplement or any other Transaction Document or for the value, validity,
        effectiveness, genuineness, enforceability or sufficiency of this Indenture
        Supplement, any other Transaction Document, the Loan Note, the SUBI
        Certificates, the Sold Units or the Fleet Receivables or for any failure
        of any
        of the Issuer, the Administrator, SPV, Holdings, the Origination Trust or
        the
        Servicer 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
        Indenture Supplement, any other Transaction Document, the Loan Note, the
        SUBI
        Certificates, the Sold Units or the Fleet Receivables or to inspect the
        properties, books or records of the Issuer, the Administrator, SPV, Holdings,
        the Origination Trust or the Servicer.

       

      
        
          
          

        

        
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      SECTION
        10.4.  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 the
        Issuer or the Administrator), independent accountants and other experts selected
        by the Administrative Agent and shall not be liable for any action taken
        or
        omitted to be taken by it in good faith in accordance with the advice of
        such
        counsel, accountants or experts. The Administrative Agent may deem and treat
        the
        registered holder of any Series 2006-1 Investor 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 Indenture Supplement or any other Transaction Document unless it shall
        first receive such advice or concurrence of the Funding Agents, on behalf
        of the
        Purchasers, 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 Indenture Supplement and
        the
        other Transaction Documents in accordance with a request of the Series 2006-1
        Required Investor 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 2006-1 Investor 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.

       

      SECTION
        10.5.  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, any
        Event
        of Default or Default, any Termination Event or any Servicer Default unless
        the
        Administrative Agent has received written notice from a CP Conduit Purchaser,
        an
        APA Bank, a Funding Agent, the Issuer, the Administrator, SPV, Holdings,
        the
        Origination Trust or the Servicer referring to the Agreement or this Indenture
        Supplement, describing such Amortization Event or Potential Amortization
        Event,
        Event of Default or Default, Termination Event or Servicer Default or and
        stating that such notice is a “notice of an Amortization Event or Potential
        Amortization Event,” “notice of an Event of Default or Default,” “notice of a
        Termination Event” or “notice of a Servicer 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 Indenture Trustee,
        the Issuer and the Administrator. The Administrative Agent shall take such
        action with respect to such event as shall be reasonably directed by the
        Series
        2006-1 Required Investor 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 Purchasers. 

       

      
        
          
          

        

        
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      SECTION
        10.6.  Non-Reliance
        on the Administrative Agent and Other Purchasers.  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 the Issuer, 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 the Issuer, the Administrator, SPV, Holdings, the
        Origination Trust and the Servicer and made its own decision to enter into
        this
        Indenture 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 Indenture Supplement
        and
        the other Transaction 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 the Issuer, the Administrator,
        SPV,
        Holdings, the Origination Trust and the Servicer. 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 the Issuer, the Administrator, SPV, Holdings, the
        Origination Trust or the Servicer which may come into the possession of the
        Administrative Agent or any of its officers, directors, employees, agents,
        attorneys-in-fact or Affiliates.

       

      SECTION
        10.7.  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 the Issuer and the
        Administrator and without limiting the obligation of the Issuer and the
        Administrator to do so), ratably according to their respective Commitment
        Percentages 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
        terminated and the Purchaser Group Invested Amounts shall have been reduced
        to
        zero, ratably in accordance with their Commitment Percentages immediately
        prior
        to such date of payment), 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 Indenture Supplement, any of the other Transaction
        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.

       

      
        
          
          

        

        
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      SECTION
        10.8.  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 the Issuer, the Administrator
        or any of their Affiliates as though the Administrative Agent were not the
        Administrative Agent hereunder. With respect to any Series 2006-1 Investor
        Note
        held by the Administrative Agent, the Administrative Agent shall have the
        same
        rights and powers under this Indenture Supplement and the other Transaction
        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
        10.9.  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 Indenture Trustee, the Issuer and the
        Administrator. If JPMorgan Chase shall resign as Administrative Agent under
        this
        Indenture Supplement, then the Series 2006-1 Required Investor Noteholders
        shall
        promptly appoint a successor administrative agent from among the Funding
        Agents,
        which successor administrative agent shall be approved by the Issuer and
        the
        Administrator (which approval shall not be unreasonably withheld). If no
        successor administrative agent is appointed prior to the effective date of
        the
        resignation of the Administrative Agent, the Administrative Agent may appoint,
        after consulting with the Funding Agents, the Issuer and the Administrator,
        a
        successor agent from among the Funding Agents. If no successor administrative
        agent has accepted appointment as Administrative Agent by the date which
        is 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 Series
        2006-1
        Required Investor Noteholders appoint a successor agent as provided for above.
        Effective upon the appointment of a successor administrative agent, such
        successor administrative agent shall succeed to the rights, powers and duties
        of
        the Administrative Agent, and the term “Administrative Agent” shall mean such
        successor administrative 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 Indenture
        Supplement. After any retiring Administrative Agent’s resignation as
        Administrative Agent, the provisions of this Article 10 shall inure to its
        benefit as to any actions taken or omitted to be taken by it while it was
        Administrative Agent under this Indenture Supplement.

       

      
        
          
          

        

        
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      ARTICLE
        11

       

      THE
        FUNDING AGENTS

       

      SECTION
        11.1. 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 Indenture Supplement and irrevocably authorizes such Funding Agent,
        in such
        capacity, to take such action on its behalf under the provisions of this
        Indenture Supplement and to exercise such powers and perform such duties
        as are
        expressly delegated to such Funding Agent by the terms of this Indenture
        Supplement, together with such other powers as are reasonably incidental
        thereto. Notwithstanding any provision to the contrary elsewhere in this
        Indenture 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, obliga-tions or liabilities shall be
        read
        into this Indenture Supplement or otherwise exist against each Funding Agent.
        

       

      SECTION
        11.2. Delegation
        of Duties.  Each
        Funding Agent may execute any of its duties under this Indenture 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
        11.3. 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 or this Indenture Supplement (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 the Issuer,
        the Administrator, the Administrative Agent, or any officer thereof contained
        in
        this Indenture Supplement or any other Transaction 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 Indenture
        Supplement or any other Transaction Document or for the value, validity,
        effectiveness, genuineness, enforceability or sufficiency of this Indenture
        Supplement, any other Transaction Document, or for any failure of any of
        the
        Issuer, the Administrator, SPV, Holdings, the Origination Trust, the Servicer
        or
        the Administrative Agent 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 Indenture Supplement, any other Transaction Document, the Loan Note,
        the SUBI Certificates, the Sold Units or the Fleet Receivables or to inspect
        the
        properties, books or records of the Issuer, the Administrator, SPV, Holdings,
        the Origination Trust, the Servicer or the Administrative Agent.

       

      
        
          
          

        

        
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      SECTION
        11.4. 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 (includ-ing, without limitation, counsel to the
        Issuer 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 Indenture Supplement or any other
        Transaction 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
        11.5. 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, any Event of Default
        or Default, any Termination Event or any Servicer Default unless such Funding
        Agent has received written notice from a CP Conduit Purchaser, an APA Bank,
        the
        Issuer, the Administrator, the Servicer, SPV, Holdings, or the Origination
        Trust
        referring to the Indenture or this Indenture Supplement, describing such
        Amortization Event or Potential Amortization Event, Event of Default or Default,
        Termination Event or Servicer Default or and stating that such notice is
        a
“notice of an Amortization Event or Potential Amortization Event,” “notice of an
        Event of Default or Default,” “notice of a Termination Event” or “notice of a
        Servicer Default”, as the case may. 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. 

       

      SECTION
        11.6. 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 the Issuer 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 repre-sents 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 apprai-sal
        of and investi-ga-tion into the business, operations, property, financial
        and
        other condi-tion and creditworthiness of the Issuer, the Administrator, SPV,
        Holdings, the Origination Trust and the Servicer. 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 docu-ments and
        information as it shall deem appropriate at the time, continue to make its
        own
        credit analysis, appraisals and deci-sions in taking or not taking action
        under
        this Indenture Supplement and the other Transaction Documents, and to make
        such
        investigation as it deems necessary to inform itself as to the business,
        opera-tions, property, financial and other conditions and creditworthiness
        of
        the Issuer, the Administrator, SPV, Holdings, the Origination Trust and the
        Servicer. 

       

      
        
          
          

        

        
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      SECTION
        11.7. Indemnification. 
        Each
        APA
        Bank in a Purchaser Group agrees to indemnify its Funding Agent in its capacity
        as such (to the extent not reim-bursed by the Issuer and the Administrator
        and
        without limiting the obligation of the Issuer 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
        11.7
        (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 Indenture Supplement, any of the other Transaction 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 connec-tion 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.

       

      

       

      ARTICLE
        12

       

      MISCELLANEOUS

       

      SECTION
        12.1.  Ratification
        of Indenture As
        Indenture Supplemented by this Indenture Supplement, the Indenture is in
        all
        respects ratified and confirmed and the Indenture as so Indenture Supplemented
        by this Indenture Supplement shall be read, taken and construed as one and
        the
        same instrument.

       

      SECTION
        12.2.  Governing
        Law THIS
        INDENTURE SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
        THE
        LAWS OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF
        THE
        PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

       

      
        
          
          

        

        
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      SECTION
        12.3.  Further
        Assurances Each
        of
        the Issuer, the Administrator and the Indenture Trustee agrees, from time
        to
        time, to do and perform any and all acts and to execute any and all further
        instruments required or reasonably requested by the Administrative Agent
        more
        fully to effect the purposes of this Indenture Supplement and the sale of
        the
        Series 2006-1 Investor Notes hereunder. The Administrative Agent is hereby
        authorized to file any financing or registration statements or similar documents
        or notices or continuation statements in order to perfect the Indenture
        Trustee’s security interest in the Series 2006-1 Collateral.

       

      SECTION
        12.4.  Payments
        Each
        payment to be made hereunder shall be made on the required payment date in
        lawful money of the United States and in immediately available funds, if
        to a
        Purchaser, at the office of the Funding Agent with respect to such Purchaser
        Group set forth in Section
        12.9.
        

       

      SECTION
        12.5.  Costs
        and Expenses  The
        Administrator agrees to pay on demand 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 Indenture Supplement the reasonable fees and disbursements
        of
        counsel to such Purchaser Group) in connection with (i) the preparation,
        execution, delivery and administration (including periodic auditing and any
        requested amendments, waivers or consents) of this Indenture Supplement,
        the
        Indenture and the other Transaction Documents and amendments or waivers of
        any
        such documents and (ii) the enforcement by the Administrative Agent or any
        Funding Agent of the obligations and liabilities of the Issuer, the
        Administrator, SPV, Holdings, the Origination Trust, VMS and the Servicer
        under
        the Indenture, this Indenture Supplement or the other Transaction Documents
        and
        all costs and expenses, if any (including reasonable counsel fees and expenses),
        in connection with the enforcement of this Agreement and the other Transaction
        Documents.

       

      SECTION
        12.6.  No
        Waiver; Cumulative Remedies No
        failure to exercise and no delay in exercising, on the part of the Indenture
        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
        12.7.  Amendments 
        (b) This
        Indenture Supplement may be amended in writing from time to time by the
        Administrator, the Issuer and the Indenture Trustee, with the consent of
        the
        Series 2006-1 Required Investor Noteholders; provided that, notwithstanding
        the
        foregoing, without the consent of each CP Conduit Purchaser and each APA
        Bank,
        no such amendment shall:

       

      (i) 
        reduce
        the percentage of Series 2006-1 Investor Noteholders whose consent is required
        to take any particular action hereunder;

       

      
        
          
          

        

        
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      (ii) (A)
        extend the due date for, or reduce the amount of any scheduled repayment
        or
        prepayment of principal of or interest on any Series 2006-1 Investor Note
        (or
        reduce the principal amount of or rate of interest on any Series 2006-1 Investor
        Note); (B) extend the due date for, or reduce the amount of any Commitment
        Fee
        payable hereunder; (C) change the calculation of any Article 7 Costs or other
        amounts payable by the Issuer to the CP Conduit Purchasers or APA Banks
        hereunder; (D) modify Section
        5A.4(c);
        (E)
        approve the assignment or transfer by the Issuer of any of its rights or
        obligations hereunder or under any other Transaction Document to which it
        is a
        party except pursuant to the express terms hereof or thereof; (F) release
        any
        obligor under any Transaction Document to which it is a party except pursuant
        to
        the express terms of such Transaction Document; (G) amend or otherwise modify
        any Amortization Event or any defined term referred to therein; (H) amend
        or
        otherwise modify the Series 2006-1 Required Asset Amount, the Series 2006-1
        Required Overcollateralization Amount, the Series 2006-1 Required Enhancement
        Amount or any defined term referred to therein or (I) permit the creation
        of any
        Lien ranking prior to or on a parity with the Indenture Trustee’s Lien on the
        Series 2006-1 Collateral, release such Lien except pursuant to the express
        terms
        hereof or deprive any Series 2006-1 Investor Noteholder of the security afforded
        by such Lien;

       

      (iii) modify
        Section
        12.7(a);
        and

       

      (iv) modify
        the allocations and priorities of payments set forth in Article 3 of this
        Indenture Supplement.

       

      (b) Any
        amendment hereof can be effected without the Administrative Agent’s being party
        thereto; provided,
        however,
        that no
        such amendment, modification or waiver of this Indenture Supplement that
        affects
        rights or duties of the Administrative Agent shall be effective unless the
        Administrative Agent shall have given its prior written consent
        thereto.

       

      (c) Promptly
        after the execution of any amendment hereof, the Administrator shall mail
        to
        each of the Funding Agents and each Rating Agency a copy thereof.

       

      SECTION
        12.8.  Severability.
        If
        any
        provision hereof is void or unenforceable in any jurisdiction, such voidness
        or
        unenforceability shall not affect the validity or enforceability of (i) such
        provision in any other jurisdiction or (ii) any other provision hereof in
        such
        or any other jurisdiction.

       

      SECTION
        12.9.  Notices.
        All
        notices, requests, instructions and demands to or upon any party hereto to
        be
        effective shall be given (i) in the case of the Issuer, the Administrator
        and
        the Indenture Trustee, in the manner set forth in Section
        13.4
        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, National Association

      c/o
        JPMorgan Securities Inc.

      10
        South
        Dearborn - 13th Floor

      Chicago,
        IL 60670

      Attention:
        Asset-Backed Finance

      Fax
        (312)
        732-3600

      

      SECTION
        12.10.  Successors
        and Assigns. (a) This
        Indenture Supplement shall be binding upon and inure to the benefit of the
        parties hereto and their respective successors and assigns, except that the
        Issuer may not assign or transfer any of its rights under this Indenture
        Supplement without the prior written consent of all of the Series 2006-1
        Investor Noteholders, no CP Conduit Purchaser may assign or transfer any
        of its
        rights under this Indenture 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) below
        of
        this Section 12.10
        and no
        APA Bank may assign or transfer any of its rights or obligations under this
        Indenture Supplement except to a Program Support Provider or pursuant to
        clause
        (c) below of this Section
        12.10.

       

      (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 obli-ga-tions under this Indenture Supplement and any
        other
        Transaction 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, the Issuer, the
        Indenture 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 Transaction
        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 Transaction 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 Transaction 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 appli-cable,
        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
        Indenture Supplement, the Base Indenture and the other Transaction 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.

       

      
        
          
          

        

        
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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 Indenture Supplement and the Series 2006-1 Investor Notes, with
        the
        prior written consent of the Administrative Agent, the Issuer 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 E
        (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, the Issuer 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 of the APA Banks
        in
        its Purchaser Group, its APA Bank Percentage of the Series 2006-1 Investor
        Note
        of its Purchaser Group 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 Indenture Supplement shall remain unchanged, (B)
        such APA Bank shall remain solely responsible for the performance thereof
        and
        (C) the Issuer and the Administrative Agent shall continue to deal solely
        and
        directly with such APA Bank in connection with its rights and obligations
        under
        this Indenture 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 Indenture Supplement or
        any
        Transaction 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 7 Costs
        but
        only to the extent that the related selling APA Bank would have had such
        right
        absent the sale of the related participation.

       

      (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 Indenture Supplement and the Series 2006-1 Investor Notes, with
        the
        prior written consent of the Administrative Agent, the Issuer 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 F
        (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 Bank, the
        Administrative Agent, the Issuer and the Administrator and delivered to the
        Administrative Agent.

       

      
        
          
          

        

        
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      (f) The
        Issuer 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 the Issuer, the Collateral, the Servicer and the
        Transaction Documents which has been delivered to such APA Bank by the Issuer
        or
        the Administrator in connection with such APA Bank’s credit evaluation of the
        Issuer, the Collateral and the Servicer.

       

      SECTION
        12.11.  Securities
        Laws. Each
        CP
        Conduit Purchaser and APA Bank hereby represents and warrants to the Issuer
        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
        2006-1 Investor Note. Each CP Conduit Purchaser and each APA Bank agrees
        that
        its Series 2006-1 Investor Note will be acquired for investment only and
        not
        with a view to any public distribution thereof, and that such CP Conduit
        Purchaser or APA Bank will not offer to sell or otherwise dispose of its
        Series
        2006-1 Investor 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 each APA Bank acknowledges
        that it has no right to require the Issuer to register its Series 2006-1
        Investor Note under the Securities Act or any other securities law. Each
        CP
        Conduit Purchaser and each APA Bank hereby confirms and agrees that in
        connection with any transfer by it of an interest in the Series 2006-1 Investor
        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
        12.12.  Adjustments;
        Set-off. (a) If
        any CP
        Conduit Purchaser or APA Bank in a Purchaser Group (a “Benefitted
        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, such
        Benefitted Group Purchaser shall purchase for cash from the other Purchaser
        Group such portion of such other Purchaser Group’s interest in the Series 2006-1
        Investor Notes, or shall provide such other Purchaser Group with the benefits
        of
        any such collateral, or the proceeds thereof, as shall be necessary to cause
        such Benefitted 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 Benefitted Purchaser Group, such purchase shall be rescinded, and
        the
        purchase price and benefits returned, to the extent of such recovery, but
        without interest. The Issuer agrees that any Purchaser Group 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 Purchaser Group
        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 each APA Bank shall have the right, without
        prior
        notice to the Issuer, any such notice being expressly waived by the Issuer
        to
        the extent permitted by applicable law, upon any amount becoming due and
        payable
        by the Issuer hereunder or under the Series 2006-1 Investor 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 CP Conduit Purchaser or such APA Bank to or for the credit
        or the
        account of the Issuer. Each CP Conduit Purchaser and each APA Bank agrees
        promptly to notify the Issuer and the Administrative Agent after any such
        set-off and application made by such Person; provided
        that the
        failure to give such notice shall not affect the validity of such set-off
        and
        application.

       

      SECTION
        12.13.  Counterparts.
        This
        Indenture Supplement may be executed in any number of counterparts and by
        the
        different parties hereto in separate counterparts, each of which when so
        executed shall be deemed to be an original, and all of which taken together
        shall constitute one and the same agreement.

       

      SECTION
        12.14.  No
        Bankruptcy Petition. (a) 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 (i) the last day of the Series 2006-1
        Amortization Period and (ii) the last day of the amortization period of any
        other Outstanding Series, it will not institute against, or join any other
        Person in instituting against, the Issuer any involuntary bankruptcy,
        reorganization, arrangement, insolvency or liquidation proceedings, or other
        similar proceedings under any federal or state bankruptcy or similar
        law.

       

      (b) 
        The
        Issuer, the Administrator, the Indenture Trustee, the Administrative Agent,
        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 involuntary bankruptcy,
        reorganization, arrangement, insolvency or liquidation proceedings, or other
        similar proceedings under any federal or state bankruptcy or similar
        law.

       

      (c) 
        The
        Issuer, the Administrator, the Indenture Trustee, the Administrative Agent,
        each
        CP Conduit Purchaser, each APA Bank and each Funding Agent hereby covenants
        and
        agrees that, prior to the date which is one year and one day after payment
        in
        full of all obligations under each Securitization, it will not institute
        against, or join any other Person in instituting against, the Origination
        Trust,
        SPV, Holdings, any other Special Purpose Entity, or any general partner or
        single member of any Special Purpose Entity that is a partnership or limited
        liability company, respectively, any involuntary bankruptcy, reorganization,
        arrangement, insolvency or liquidation proceeding or other proceedings under
        any
        federal or state bankruptcy or similar law.

       

      
        
          
          

        

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

       

      SECTION
        12.15.  SUBIs. 
        The
        Issuer, the Administrator, the Administrative Agent, each CP Conduit Purchaser,
        each APA Bank and each Funding Agent hereby represents, warrants and covenants
        that (a) each of the Lease SUBI and the Fleet Receivable SUBI is a separate
        series of the Origination Trust as provided in Section 3806(b)(2) of Chapter
        38
        of Title 12 of the Delaware Code, 12 Del.C.
§
3801
        et seq.,
        (b)(i)
        the debts, liabilities, obligations and expenses incurred, contracted for
        or
        otherwise existing with respect to the Lease SUBI, the Lease SUBI Portfolio
        or
        the Fleet Receivable SUBI shall be enforceable against the Lease SUBI Portfolio
        or the Fleet Receivable SUBI only, as applicable, and not against any other
        SUBI
        Portfolio or the UTI Portfolio and (ii) the debts, liabilities, obligations
        and
        expenses incurred, contracted for or otherwise existing with respect to any
        other SUBI (used in this Section as defined in the Origination Trust Agreement),
        any other SUBI Portfolio (used in this Section as defined in the Origination
        Trust Agreement), the UTI or the UTI Portfolio shall be enforceable against
        such
        other SUBI Portfolio or the UTI Portfolio only, as applicable, and not against
        any other SUBI Assets, (c) except to the extent required by law, UTI Assets
        or
        SUBI Assets with respect to any SUBI (other than the Lease SUBI and the Fleet
        Receivable SUBI) shall not be subject to the claims, debts, liabilities,
        expenses or obligations arising from or with respect to the Lease SUBI or
        Fleet
        Receivable SUBI, respectively, in respect of such claim, (d)(i) no creditor
        or
        holder of a claim relating to the Lease SUBI, the Fleet Receivable SUBI or
        the
        Lease Receivable SUBI Portfolio shall be entitled to maintain any action
        against
        or recover any assets allocated to the UTI or the UTI Portfolio or any other
        SUBI or the assets allocated thereto, and (ii) no creditor or holder of a
        claim
        relating to the UTI, the UTI Portfolio or any SUBI other than the Lease SUBI
        or
        the Fleet Receivable SUBI or any SUBI Assets other than the Lease SUBI Portfolio
        or the Fleet Receivables shall be entitled to maintain any action against
        or
        recover any assets allocated to the Lease SUBI or the Fleet Receivable SUBI,
        and
        (e) any purchaser, assignee or pledgee of an interest in the Lease SUBI,
        the
        Lease SUBI Certificate, the Fleet Receivable SUBI, the Lease SUBI Certificate,
        the Fleet Receivable SUBI Certificate, any other SUBI, any other SUBI
        Certificate (used in this Section as defined in the Origination Trust
        Agreement), the UTI or the UTI Certificate must, prior to or contemporaneously
        with the grant of any such assignment, pledge or security interest, (i) give
        to
        the Origination Trust a non-petition covenant substantially similar to that
        set
        forth in Section 6.9 of the Origination Trust Agreement, and (ii) execute
        an
        agreement for the benefit of each holder, assignee or pledgee from time to
        time
        of the UTI or UTI Certificate and any other SUBI or SUBI Certificate to release
        all claims to the assets of the Origination Trust allocated to the UTI and
        each
        other SUBI Portfolio and in the event that such release is not given effect,
        to
        fully subordinate all claims it may be deemed to have against the assets
        of the
        Origination Trust allocated to the UTI Portfolio and each other SUBI
        Portfolio.

       

      SECTION
        12.16.  Discharge
        of Indenture.  Notwithstanding
        anything to the contrary contained in the Base Indenture, no discharge of
        the
        Indenture pursuant to Section
        12.1(b)
        of the
        Base Indenture will be effective as to the Series 2006-1 Investor Notes without
        the consent of the Series 2006-1 Required Investor Noteholders.

       

      
        
          
          

        

        
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      SECTION
        12.17.  Limited
        Recourse. (a) Notwithstanding
        anything to the contrary contained herein, any obligations of each CP Conduit
        Purchaser hereunder to any party hereto are solely the corporate 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.

       

      (b) 
        No
        recourse under any obligation, covenant or agreement of any CP Conduit Purchaser
        contained herein shall be had against any incorporator, stockholder, 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 Indenture Supplement is solely a corporate
        obligation of such CP Conduit Purchaser individually, and that no personal
        liability whatever shall attach to or be incurred by any incorporator,
        stockholder, 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, officer, director, employee or agent is hereby expressly waived
        as
        a condition of and in consideration for the execution of this Indenture
        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 12.18 shall survive termination of this
        Indenture Supplement.

       

      SECTION
        12.18.  Waiver
        of Setoff.  Notwithstanding
        any other provision of this Indenture Supplement or any other agreement to
        the
        contrary, all payments to the Purchasers hereunder shall be made without
        set-off
        or counterclaim.

       

      SECTION
        12.19.  Conflict
        of Instructions.  In
        the
        event the Issuer and the Administrator shall have delivered conflicting
        instructions to the Indenture Trustee or the Administrative Agent to take
        or
        refrain from taking action hereunder, the Indenture Trustee or the
        Administrative Agent, as the case may be, shall follow the instructions of
        the
        Issuer.

       

      SECTION
        12.20.  JPMorgan
        Chase Conflict Waiver.  JPMorgan
        Chase acts as Indenture Trustee, the Funding Agent with respect to one or
        more
        of the CP Conduit Purchasers (collectively,“Conduit”) and as administrative
        agent for Conduit, as issuing and paying agent for Conduit’s Commercial Paper,
        as provider of other backup facilities for Conduit, and may provide other
        services or facilities from time to time (the “JPMorgan
        Chase Roles”).
        Each
        of the parties hereto hereby acknowledges and consents to any and all JPMorgan
        Chase Roles, waives any objections it may have to any actual or potential
        conflict of interest caused by JPMorgan Chase’s acting as the Indenture Trustee,
        the Funding Agent with respect to Conduit or as the APA Bank with respect
        to
        Conduit and acting as or maintaining any of the JPMorgan Chase Roles, and
        agrees
        that in connection with any JPMorgan Chase Role, JPMorgan Chase may take,
        or
        refrain from taking, any action which it in its discretion deems
        appropriate.

       

      
        
          
          

        

        
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      SECTION
        12.21. Confidential Information.

       

      (a) The
        Indenture Trustee and each Series 2006-1 Investor Noteholder will maintain
        the
        confidentiality of all Confidential Information in accordance with procedures
        adopted by the Indenture Trustee or such Series 2006-1 Investor 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
        12.21;
        (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
        12.21;
        (iii)
        any other Series 2006-1 Investor Noteholder; (iv) any Person of the type
        that
        would, to such Person’s knowledge, be permitted to acquire Series 2006-1
        Investor Notes in accordance with the requirements of the Indenture to which
        such Person sells or offers to sell any such Series 2006-1 Note or any part
        thereof or any participation therein that agrees to hold confidential the
        Confidential Information substantially in accordance with this Section
        12.21
        (or in
        accordance with such other confidentiality procedures as are acceptable to
        the
        Issuer); (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) such Person’s reinsurers, liquidity
        providers, credit providers, investors or potential investors or the directors,
        trustees, officers, employees, agents, attorneys, independent or internal
        auditors, financial advisors or other professional advisors of such reinsurers,
        liquidity providers, credit providers, investors or potential investors who,
        in
        each case, agree to hold confidential the Confidential Information substantially
        in accordance with this Section
        12.21
        (or in
        accordance with such other confidentiality procedures as are acceptable to
        the
        Issuer); (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 PHH or any
        of its
        Affiliates); (ix) any other Person with the consent of the Issuer; 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 the Issuer (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 the Issuer (unless prohibited by applicable law, rule, order or decree
        or
        other requirement having the force of law) or (D) if an Amortization Event
        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 2006-1
        Investor Notes, the Indenture or any other Related Document; and provided,
        further, however, that delivery to Series 2006-1 Investor Noteholders of
        any
        report or information required by the terms of the Indenture to be provided
        to
        Series 2006-1 Investor Noteholders shall not be a violation of this Section
        12.21.
        Each
        Series 2006-1 Investor 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 2006-1 Investor Notes or
        administering its investment in the Series 2006-1 Investor Notes. In the
        event
        of any required disclosure of the Confidential Information by such Series
        2006-1
        Investor Noteholder, such Series 2006-1 Investor Noteholder agrees to use
        reasonable efforts to protect the confidentiality of the Confidential
        Information. Each Series 2006-1 Investor Noteholder, by its acceptance of
        a
        Series 2006-1 Note, will be deemed to have agreed to be bound by and to be
        entitled to the benefits of this Section
        12.21.

       

      
        
          
          

        

        
          80

          
            

          

        

        
          
          

        

      

      (b) For
        the
        purposes of this Section
        12.21,
        “Confidential Information” means information delivered to the Indenture Trustee
        or any Series 2006-1 Investor Noteholder by or on behalf of the Issuer in
        connection with and relating to the transactions contemplated by or otherwise
        pursuant to the Indenture and the Transaction Documents; provided, that such
        term does not include information that: (i) was publicly known or otherwise
        known to the Indenture Trustee or such Series 2006-1 Investor Noteholder
        prior
        to the time of such disclosure; (ii) subsequently becomes publicly known
        through
        no act or omission by the Indenture Trustee, any Series 2006-1 Investor
        Noteholder or any person acting on behalf of the Indenture Trustee or any
        Series
        2006-1 Investor Noteholder; (iii) otherwise is known or becomes known to
        the
        Indenture Trustee or any Series 2006-1 Investor Noteholder other than (x)
        through disclosure by the Issuer or (y) as a result of the breach of a fiduciary
        duty to the Issuer or a contractual duty to the Issuer; or (iv) is allowed
        to be
        treated as non-confidential by consent of the Issuer.

       

      

      
        
          
          

        

        
          81

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Issuer, the Administrator, the Administrative Agent,
        the CP
        Conduit Purchasers, the APA Banks, the Funding Agents and the Indenture Trustee
        have caused this Indenture Supplement to be duly executed by their respective
        officers hereunto duly authorized as of the day and year first above
        written.

       

      CHESAPEAKE
        FUNDING LLC

       

      
        	 	
                By:

              	
                   /s/:
                  Mark E. Johnson
                                        

              

      

      
        	 	
                Name:

              	
                Mark
                  E. Johnson

              

      

      Title:
        Vice President and Treasurer 

       

      PHH
        VEHICLE MANAGEMENT SERVICES, LLC

       

      
        	 	
                By:

              	
                   /s/:
                  Mark E. Johnson
                                        

              

      

      
        	 	
                Name:

              	
                Mark
                  E. Johnson

              

      

      Title:
        Vice President and Treasurer 

       

      
        
           

        

        
          82

          
            

          

        

        
           

        

      

      JPMORGAN
        CHASE BANK, NATIONAL ASSOCIATION, as Administrative Agent 

       

      
        	 	
                By:

              	
                   /s/:
                  Daniel J. Clarke, Jr.
                                   

              

      

      
        	 	
                Name:

              	
                Daniel
                  J. Clarke, Jr.

              

      

      Title:
        Managing Director

       

      JPMORGAN
        CHASE BANK, NATIONAL ASSOCIATION, as Indenture Trustee

       

      
        	 	
                By:

              	
                  /s/:
                  James P. Bowden
                                      

              

      

      Name:
        James P. Bowden  

      Title:
        Assistant Treasuer

       

      
        
           

        

        
          83

          
            

          

        

        
           

        

      

      PARK
        AVENUE RECEIVABLES COMPANY, LLC, as a CP Conduit Purchaser

       

      By:
          /s/:
        Catherine V. Frank
             

      Name:
        Catherine V. Frank

      Title:
        Vice President

       

      FALCON
        ASSET SECURITIZATION CORPORATION, as a CP Conduit Purchaser

       

      By:
          /s/:
        Catherine V. Frank
             

      Name:
        Catherine V. Frank

      Title:
        Vice President

       

      

       

      JPMORGAN
        CHASE BANK, NATIONAL ASSOCIATION, as an APA Bank and as a Funding
        Agent

       

      By:
          /s/:
        Catherine V. Frank
             

      Name:
        Catherine V. Frank

      Title:
        Vice President

       

       

       

      

       

      
        
           

        

        
          84

          
            

          

        

        
           

        

      

      CRC
        FUNDING, LLC, as a CP Conduit Purchaser

       

      By:
        CITICORP NORTH AMERICA, INC.,

      As
        Attorney-in-Fact

       

      By:
            /s/:
        Lain J. Gutierrez
             

      
        	 	
                Name:

              	
                Lain
                  J. Gutierrez

              

      

      Title:
        Vice President

       

      CITIBANK,
        N.A., as an APA Bank 

       

      
        	 	
                By:

              	
                  /s/:
                  Lain J. Gutierrez
                                      

              

      

      Name:
        Lain J. Gutierrez

      Title:
        Vice President

       

      CITICORP
        NORTH AMERICA, INC., as a Funding Agent

       

      
        	 	
                By:

              	
                   /s/:
                  Lain J. Gutierrez
                                      

              

      

      
        	 	
                Name:

              	
                Lain
                  J. Gutierrez

              

      

      Title:
        Vice President

       

       

       

      
        
           

        

        
          85

          
            

          

        

        
           

        

      

      VARIABLE
        FUNDING CAPITAL COMPANY LLC, as a CP Conduit Purchaser

       

      By:
        WACHOVIA CAPITAL MARKETS, LLC, 

      As
        Attorney-in-Fact

      

      

      By:
          /s/:
        Douglas R. Wilson, Sr.
             

      Name:
        Douglas R. Wilson, Sr.

      Title:
        Vice President

       

      WACHOVIA
        BANK, NATIONAL ASSOCIATION, as an APA Bank and as a Funding Agent

       

      
        	 	
                By:

              	
                  /s/:
                  Andrew W. Riebe
                                      

              

      

      
        	 	
                Name:

              	
                Andrew
                  W. Riebe

              

      

      Title:
        Vice President

       

       

       

      
        
           

        

        
          86

          
            

          

        

        
           

        

      

      YC
        SUSI
        TRUST, as a CP Conduit Purchaser

       

      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 an APA Bank and as a Funding
        Agent

       

      
        	 	
                By:

              	
                   /s/:
                  Willem van Beek
                                      

              

      

      
        	 	
                Name:

              	
                Willem
                  van Beek

              

      

      Title:
        Principal

       

       

       

      
        
           

        

        
          87

          
            

          

        

        
           

        

      

      LIBERTY
        STREET FUNDING CORPORATION, as a CP Conduit Purchaser

       

      By:
         /s/:
        Andrew L. Stidd
             

      
        	 	
                Name:
                  

              	
                 Andrew
                  L. Stidd

              

      

      Title:
        President  

       

      THE
        BANK
        OF NOVA SCOTIA, as an APA Bank and as a Funding Agent

       

      
        	 	
                By:

              	
                   /s/:
                  Norman Last
                                      

              

      

      
        	 	
                Name:

              	
                Norman
                  Last

              

      

      Title:
         Managing
        Director

       

       

       

      
        
           

        

        
          88

          
            

          

        

        
           

        

      

      COMPASS
        US ACQUISITION, LLC, as a CP Conduit Purchaser

       

      By:
           /s/:
        Doris J. Hearn
             

      Name:
        Doris J. Hearn

      Title:
        Vice President

       

      WESTLB
        AG, New York Branch, as an APA Bank and as a Funding Agent

       

      
        	 	
                By:

              	
                   /s/:
                  Richard Bianchi
                                      

              

      

      Name:
        Richard Bianchi

      Title:
        Director

       

      
        	 	
                By:

              	
                   /s/:
                  Yuval Lifshitz
                                      

              

      

      
        	 	
                Name:

              	
                Yuval
                  Lifshitz

              

      

      Title:
        Associate Director  

       

      
        
           

        

        
          89

          
            

          

        

        
           

        

      

      ATLANTIC
        ASSET SECURITIZATION LLC, as a CP Conduit Purchaser

       

      By:
           /s/:
        Kostantina Kourmpetis
             

      
        	 	
                Name:

              	
                Kostantina
                  Kourmpetis

              

      

      Title:
        Managing Director  

       

      By:
          /s/:
        Sam Pilcer 
             

      
        	 	
                Name:
                  

              	
                 Sam
                  Pilcer

              

      

      Title:
        Manging Director  

       

      CALYON
        New York Branch, as an APA Bank and as a Funding Agent

       

      By:
           /s/:
        Kostantina Kourmpetis
             

      
        	 	
                Name:

              	
                Kostantina
                  Kourmpetis

              

      

      Title:
        Managing Director  

       

      By:
          /s/:
        Sam Pilcer 
             

      
        	 	
                Name:
                  

              	
                 Sam
                  Pilcer

              

      

      Title:
        Manging Director  

       

      

       

      

       

      
        
           

        

        
          90

          
            

          

        

        
           

        

      

      THAMES
        ASSET GLOBAL SECURITIZATION NO.1 INC., as a CP Conduit Purchaser

       

      By:
          /s/:
        R. Douglas Donaldson
             

      
        	 	
                Name:

              	
                R.
                  Douglas Donaldson

              

      

      Title:
        Treasurer  

       

      ROYAL
        BANK OF SCOTLAND PLC, as a Funding Agent

       

      
        	 	
                By:

              	
                  /s/:
                  Michael Zappaterrini
                                      

              

      

      
        	 	
                Name:
                  

              	
                 Michael
                  Zappaterrini

              

      

      Title:
        Managing Director 

       

      

       

      ROYAL
        BANK OF SCOTLAND PLC, NEW YORK BRANCH as an APA Bank

       

      
        	 	
                By:

              	
                  /s/:
                  Angela Reilly
                                      

              

      

      
        	 	
                Name:
                  

              	
                 Angela
                  Reilly

              

      

      Title:
        Senior Vice President    

       

      91

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]