Document:

Exhibit
10.41

 

CONFORMED
COPY

 

 

AESOP FUNDING II L.L.C.,

as Issuer

 

and

 

 

THE BANK OF NEW YORK,

as Trustee and Series 2003-5 Agent

 

 

 

 

SERIES 2003-5 SUPPLEMENT

dated as of October 9, 2003

 

 

to

 

 

AMENDED AND RESTATED BASE
INDENTURE

dated as of July 30, 1997

 

 

 

 

SERIES 2003-5
SUPPLEMENT, dated as of October 9, 2003 (this “Supplement”), among AESOP
FUNDING II L.L.C., a special purpose limited liability company estab­lished
under the laws of Delaware (“AFC-II”), THE BANK OF NEW YORK, a New York
banking corporation, as successor in interest to the corporate trust
administration of Harris Trust and Savings Bank, as trustee (together with its
successors in trust thereunder as pro­vided in the Base Indenture referred to
below, the “Trustee”), and THE BANK OF NEW YORK, a New York banking
corporation, as agent for the benefit of the Series 2003-5 Noteholders and the
Surety Provider (the “Series 2003-5 Agent”), to the Amended and Restated
Base Indenture, dated as of July 30, 1997, between AFC-II and the Trustee (as
amended, modi­fied or supplemented from time to time, exclusive of Supplements
creating a new Series of Notes, the “Base Indenture”).

 

PRELIMINARY
STATEMENT

 

WHEREAS, Sections 2.2 and
12.1 of the Base Indenture provide, among other things, that AFC-II and the
Trustee may at any time and from time to time enter into a supplement to the
Base Indenture for the purpose of authorizing the issuance of one or more
Series of Notes;

 

NOW, THEREFORE, the
parties hereto agree as follows:

 

DESIGNATION

 

There is hereby created a
Series of Notes of two classes to be issued pursuant to the Base Inden­ture and
this Supplement and such Series of Notes shall be designated generally as
Series 2003-5 Rental Car Asset Backed Notes.

 

The Series 2003-5 Notes
will be issued in two classes:  one of
which shall be designated as the Series 2003-5 2.78% Rental Car Asset Backed
Notes, Class A-1 and one of which shall be designated as the Series 2003-5
Floating Rate Rental Car Asset Backed Notes, Class A-2.

 

The proceeds from the
sale of the Series 2003-5 Notes shall be deposited in the Collection Account
and shall be paid to AFC-II and used to make Loans under the Loan Agreements to
the extent that the Borrowers have requested Loans thereunder and Eligible
Vehicles are available for acquisition or refinancing thereunder on the date
hereof.  Any such portion of proceeds
not so used to make Loans shall be deemed to be Principal Collections.

 

The Series 2003-5 Notes
are a non-Segregated Series of Notes (as more fully described in the Base Indenture).  Accordingly, all references in this
Supplement to “all” Series of Notes (and all references in this Supplement to
terms defined in the Base Indenture that contain references to “all” Series of
Notes) shall refer to all Series of Notes other than Segregated Series of
Notes.

 

 

ARTICLE I

 

DEFINITIONS

 

(a)           All capitalized terms not otherwise
defined herein are defined in the Definitions List attached to the Base
Indenture as Schedule I thereto.  All
Article, Section or Subsection references herein shall refer to Articles,
Sections or Subsections of this Supplement, except as otherwise provided
herein.  Unless otherwise stated herein,
as the context otherwise requires or if such term is otherwise defined in the
Base Indenture, each capitalized term used or defined herein shall relate only
to the Series 2003-5 Notes and not to any other Series of Notes issued by
AFC-II.

 

(b)           The following words and phrases shall
have the following meanings with respect to the Series 2003-5 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:

 

“AGH” means Avis
Group Holdings, Inc., a Delaware corporation.

 

“Authorized Newspaper”
means the Luxemburger Wort or
other daily newspaper of general circulation in Luxembourg (or if publication
is not practical in Luxembourg, in Europe).

 

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

 

“Certificate of Lease Deficit Demand” means a
certificate in the form of Annex A to the Series 2003-5 Letters of
Credit.

 

“Certificate of
Termination Date Demand” means a certificate in the form of Annex D
to the Series 2003-5 Letters of Credit.

 

“Certificate of
Termination Demand” means a certificate in the form of Annex C to
the Series 2003-5 Letters of Credit.

 

“Certificate of Unpaid
Demand Note Demand” means a certificate in the form of Annex B to
the Series 2003-5 Letters of Credit.

 

“Class” means a
class of the Series 2003-5 Notes, which may be the Class A-1 Notes or the Class
A-2 Notes.

 

“Class A-1 Carryover
Controlled Amortization Amount” means, with respect to each Related Month
during the Class A-1 Controlled Amortization Period, the amount, if any, by
which the portion of the Monthly Total Principal Allocation paid to the Class
A-1 Noteholders pursuant to Section 2.5(e) for the previous Related Month was
less than the Class A-1 Controlled Distribution Amount for the previous Related
Month; provided, however, that for the first

 

2

 

Related Month in
the Class A-1 Controlled Amortization Period, the Class A-1 Carryover
Controlled Amortization Amount shall be zero.

 

“Class A-1 Controlled
Amortization Amount” means with respect to each Related Month during the
Class A-1 Notes Controlled Amortization Period $33,333,333.33 ($33,333,333.35
on the Class A-1 Notes Expected Final Distribution Date).

 

“Class A-1 Controlled Amortization Period”
means the period commencing at the opening of business June 1, 2006 (or, if
such day is not a Business Day, the Business Day immediately preceding such
day) and continuing to the earliest of (i) the commencement of the Series
2003-5 Rapid Amortization Period, (ii) the date on which the Class A-1 Notes
are fully paid and (iii) the termination of the Indenture.

 

 “Class A-1 Controlled Distribution Amount”
means, with respect to any Related Month during the Class A-1 Notes Controlled
Amortization Period, an amount equal to the sum of the Class A-1 Controlled
Amortization Amount and any Class A-1 Carryover Controlled Amortization Amount
for such Related Month.

 

“Class A-1 Expected Final Distribution Date”
means the December 2006 Distribution Date.

 

“Class A-1 Final
Distribution Date” means the December 2007 Distribution Date.

 

“Class A-1 Initial Invested
Amount” means the aggregate initial principal amount of the Class A-1
Notes, which is $200,000,000.

 

“Class A-1 Invested
Amount” means, when used with respect to any date, an amount equal to the
Class A-1 Outstanding Principal Amount plus the sum of (a) the amount of
any principal payments made to the Class A-1 Noteholders on or prior to such
date with the proceeds of a demand on the Surety Bond and (b) the amount of any
principal payments made to Class A-1 Noteholders that have been rescinded or otherwise
returned by the Class A-1 Noteholders for any reason.

 

“Class A-1 Monthly
Interest” means, with respect to (i) the initial Series 2003-5 Interest
Period, an amount equal to $633,222.22 and (ii) any other Series 2003-5
Interest Period, an amount equal to the product of (A) one-twelfth of the Class
A-1 Note Rate and (B) the Class A-1 Invested Amount on the first day of such
Series 2003-5 Interest Period, after giving effect to any principal payments
made on such date.

 

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

 

“Class A-1 Note Rate”
means 2.78% per annum.

 

“Class A-1 Notes”
means any one of the Series 2003-5 2.78% Rental Car Asset Backed Notes, Class
A-1, executed by AFC-II and authenticated by or on behalf of the Trustee,

 

3

 

substantially in
the form of Exhibit A-1-1, Exhibit A-1-2 or Exhibit A-1-3.  Definitive Class A-1 Notes shall have such
insertions and deletions as are necessary to give effect to the provisions of
Section 2.18 of the Base Indenture.

 

“Class A-1 Outstanding
Principal Amount” means, when used with respect to any date, an amount
equal to (a) the Class A-1 Initial Invested Amount minus (b) the amount
of principal payments made to Class A-1 Noteholders on or prior to such date.

 

“Class A-2 Carryover
Controlled Amortization Amount” means, with respect to any Related Month
during the Class A-2 Controlled Amortization Period, the amount, if any, by
which the portion of the Monthly Total Principal Allocation paid to the Class
A-2 Noteholders pursuant to Section 2.5(e) for the previous Related Month was
less than the Class A-2 Controlled Distribution Amount for the previous Related
Month; provided, however, that for the first Related Month in the
Class A-2 Notes Controlled Amortization Period, the Class A-2 Carryover
Controlled Amortization Amount shall be zero.

 

“Class A-2 Controlled
Amortization Amount” means with respect to each Related Month during the
Class A-2 Notes Controlled Amortization Period, $50,000,000.

 

“Class A-2 Controlled
Amortization Period” means the period commencing at the opening of business
on June 1, 2008 (or, if such day is not a Business Day, the Business Day
immediately preceding such day) and continuing to the earliest of (i) the
commencement of the Series 2003-5 Rapid Amortization Period, (ii) the date on
which the Class A-2 Notes are fully paid and (iii) the termination of the
Indenture.

 

“Class A-2 Controlled
Distribution Amount” means, with respect to any Related Month during the
Class A-2 Notes Controlled Amortization Period, an amount equal to the sum of
the Class A-2 Controlled Amortization Amount and any Class A-2 Carryover
Controlled Amortization Amount for such Related Month.

 

“Class A-2 Expected Final
Distribution Date” means the December 2008 Distribution Date.

 

“Class A-2 Final
Distribution Date” means the December 2009 Distribution Date.

 

“Class A-2 Initial
Invested Amount” means the aggregate initial principal amount of the Class
A-2 Notes, which is $300,000,000.

 

“Class A-2 Invested
Amount” means, when used with respect to any date, an amount equal to the
Class A-2 Outstanding Principal Amount plus the sum of (a) the amount of
any principal payments made to the Class A-2 Noteholders on or prior to such
date with the proceeds of a demand on the Surety Bond and (b) the amount of any
principal payments made to Class A-2 Noteholders that have been rescinded or
otherwise returned by the Class A-2 Noteholders for any reason.

 

“Class A-2 Monthly
Interest” means, with respect to any Series 2003-5 Interest Period, an
amount equal to the product of (A) the Class A-2 Invested Amount on the first
day of such Series 2003-5 Interest Period, after giving effect to any principal
payments made on such

 

4

 

date, (B) the
Class A-2 Note Rate for such Series 2003-5 Interest Period and (C) the number
of days in such Series 2003-5 Interest period divided by 360.

 

“Class A-2 Noteholder”
means the Person in whose name a Class A-2 Note is registered in the Note
Register.

 

“Class A-2 Note Rate”
means, for (i) the initial Series 2003-5 Interest Period 1.50% per annum and
(ii) any other Series 2003-5 Interest Period, the sum of 0.38% plus
LIBOR for such Series 2003-5 Interest Period.

 

“Class A-2 Notes”
means any one of the Series 2003-5 Floating Rate Rental Car Asset Backed Notes,
Class A-2, executed by AFC-II and authenticated by or on behalf of the
Trustee, substantially in the form of Exhibit A-2-1, Exhibit A-2-2
or Exhibit A-2-3.  Definitive
Class A-2 Notes shall have such insertions and deletions as are necessary to
give effect to the provisions of Section 2.18 of the Base Indenture.

 

“Class A-2 Outstanding
Principal Amount” means, when used with respect to any date, an amount
equal to (a) the Class A-2 Initial Invested Amount minus (b) the amount
of principal payments made to Class A-2 Noteholders on or prior to such date.

 

“Clearstream” is
defined in Section 5.2.

 

“Consent” is
defined in Article IV.

 

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

 

“Demand Note Issuer”
means each issuer of a Series 2003-5 Demand Note.

 

“Designated Amounts”
is defined in Article IV.

 

“Disbursement”
means any Lease Deficit Disbursement, any Unpaid Demand Note Disbursement, any
Termination Date Disbursement or any Termination Disbursement under a Series
2003-5 Letter of Credit, or any combination thereof, as the context may
require.

 

“Excess Collections”
is defined in Section 2.3(f)(i).

 

“Euroclear” is
defined in Section 5.2.

 

“Insurance Agreement”
means the Insurance Agreement, dated as of October 9, 2003, among the Surety
Provider, the Trustee and AFC-II, which shall constitute an “Enhancement
Agreement” with respect to the Series 2003-5 Notes for all purposes under the
Indenture.

 

“Insured Principal
Deficit Amount” means, with respect to any Distribution Date, the excess,
if any, of (a) the Series 2003-5 Outstanding Principal Amount on such
Distribution Date (after giving effect to the distribution of the Monthly Total
Principal Allocation for the Related Month) over (b) the sum of the Series
2003-5 Available Reserve Account Amount on such Distribution Date, the Series
2003-5 Letter of Credit Amount on such Distribution Date and

 

5

 

the Series 2003-5
AESOP I Operating Lease Loan Agreement Borrowing Base on such Distribution
Date.

 

“Lease Deficit
Disbursement” means an amount drawn under a Series 2003-5 Letter of Credit
pursuant to a Certificate of Lease Deficit Demand.

 

“LIBOR”
means, with respect to each Series 2003-5 Interest Period, a rate per annum to
be determined by the Trustee as follows:

 

(i)            On each LIBOR Determination Date,
the Trustee will determine the London interbank offered rate for U.S. dollar
deposits for one month that appears on Telerate Page 3750 as it relates to U.S.
dollars as of 11:00 a.m., London time, on such LIBOR Determination Date:

 

(ii)           If, on any LIBOR Determination Date,
such rate does not appear on Telerate Page 3750, the Trustee will request that
the principal London offices of each of four major banks in the London
interbank market selected by the Trustee provide the Trustee with offered
quotations for deposits in U.S. dollars for a period of one month, commencing
on the first day of such Series 2003-5 Interest Period, to prime banks in the
London interbank market at approximately 11:00 a.m., London time, on such LIBOR
Determination Date and in a principal amount equal to an amount of not less
than $250,000 that is representative of a single transaction in such market at
such time.  If at least two such
quotations are provided, “LIBOR” for such Series 2003-5 Interest Period will be
the arithmetic mean of such quotations; or

 

(iii)          If fewer than two such quotations are
provided, “LIBOR” for such Series 2003-5 Interest Period will be the arithmetic
mean of rates quoted by three major banks in the City of New York selected by
the Trustee at approximately 11:00 a.m., New York City time, on such LIBOR
Determination Date for loans in U.S. dollars to leading European banks, for a
period of one month, commencing on the first day of such Series 2003-5 Interest
Period, and in a principal amount equal to an amount of not less than $250,000
that is representative of a single transaction in such market at such time; provided,
however, that if the banks selected as aforesaid by such Trustee are not
quoting rates as mentioned in this sentence, “LIBOR” for such Series 2003-5
Interest Period will be the same as “LIBOR” for the immediately preceding
Series 2003-5 Interest Period.

 

“LIBOR
Determination Date” means, with respect to any Series 2003-5 Interest
Period, the second London Banking Day preceding the first day of such Series
2003-5 Interest Period.

 

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

 

“Monthly Total
Principal Allocation” means for any Related Month the sum of all Series
2003-5 Principal Allocations with respect to such Related Month.

 

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

 

6

 

“Past Due Rent Payment”
is defined in Section 2.2(g).

 

“Permanent Global
Class A-1 Note” is defined in Section 5.2.

 

“Permanent Global
Class A-2 Note” is defined in Section 5.2.

 

“Pre-Preference Period
Demand Note Payments” means, as of any date of determination, the aggregate
amount of all proceeds of demands made on the Series 2003-5 Demand Notes
included in the Series 2003-5 Demand Note Payment Amount as of the Series
2003-5 Letter of Credit Termination Date that were paid by the Demand Note
Issuers more than one year before such date of determination; provided, however,  that
if an Event of Bankruptcy (or the occurrence of an event described in clause
(a) of the definition thereof, without the lapse of a period of sixty (60)
consecutive days) with respect to a Demand Note Issuer occurs during such one
year period, (x) the Pre-Preference Period Demand Note Payments as of any date
during the period from and including the date of the occurrence of such Event
of Bankruptcy to and including the conclusion or dismissal of the proceedings
giving rise to such Event of Bankruptcy without continuing jurisdiction by the
court in such proceedings shall equal the Pre-Preference Period Demand Note
Payments as of the date of such occurrence for all Demand Note Issuers and (y)
the Pre-Preference Period Demand Note Payments as of any date after the
conclusion or dismissal of such proceedings shall equal the Series 2003-5
Demand Note Payment Amount as of the date of the conclusion or dismissal of
such proceedings.

 

“Principal Deficit Amount” means, as of any
date of determination, the excess, if any, of (i) the Series 2003-5 Invested
Amount on such date (after giving effect to the distribution of the Monthly
Total Principal Allocation for the Related Month if such date is a Distribution
Date) over (ii) the Series 2003-5 AESOP I Operating Lease Loan Agreement
Borrowing Base on such date; provided, however the Principal
Deficit Amount on any date occurring during the period commencing on and
including the date of the filing by any of the Lessees of a petition for relief
under Chapter 11 of the Bankruptcy Code to but excluding the date on which each
of the Lessees shall have resumed making all payments of the portion of Monthly
Base Rent relating to Loan Interest required to be made under the AESOP I
Operating Lease, shall mean the excess, if any, of (x) the Series 2003-5
Invested Amount on such date (after giving effect to the distribution of
Monthly Total Principal Allocation for the Related Month if such date is a
Distribution Date) over (y) the sum of (1) the Series 2003-5 AESOP I Operating
Lease Loan Agreement Borrowing Base on such date and (2) the lesser of (a) the
Series 2003-5 Liquidity Amount on such date and (b) the Series 2003-5 Required
Liquidity Amount on such date.

 

“Pro Rata Share”
means, with respect to any Series 2003-5 Letter of Credit Provider as of any
date, the fraction (expressed as a percentage) obtained by dividing (A) the
available amount under such Series 2003-5 Letter of Credit Provider’s Series
2003-5 Letter of Credit as of such date by (B) an amount equal to the aggregate
available amount under all Series 2003-5 Letters of Credit as of such date; provided,
that only for purposes of calculating the Pro Rata Share with respect to any
Series 2003-5 Letter of Credit Provider as of any date, if such Series 2003-5
Letter of Credit Provider has not complied with its obligation to pay the
Trustee the amount of any draw under its Series 2003-5 Letter of Credit made
prior to such date, the available amount under such Series 2003-5 Letter of
Credit Provider’s Series 2003-5 Letter of Credit as of such date shall be
treated as reduced (for calculation purposes only) by the amount

 

7

 

of such unpaid
demand and shall not be reinstated for purposes of such calculation unless and
until the date as of which such Series 2003-5 Letter of Credit Provider has
paid such amount to the Trustee and been reimbursed by the Lessee or the
applicable Demand Note Issuer, as the case may be, for such amount (provided
that the foregoing calculation shall not in any manner reduce the undersigned’s
actual liability in respect of any failure to pay any demand under its Series
2003-5 Letter of Credit).

 

“Qualified Interest
Rate Cap Counterparty” means a counterparty to any Series 2003-5 Interest
Rate Cap (A) who is acceptable to the Surety Provider and (B) who is a bank or
other financial institution, which is acceptable to each Rating Agency or has
(i) a short-term senior unsecured debt, deposit or credit (as the case may be)
rating of at least “A-1” from Standard & Poor’s and of “P-1” from Moody’s
and (ii) (a) on the date such Series 2003-5 Interest Rate Cap is executed, a
long-term senior unsecured debt, deposit or credit (as the case may be) rating
of at least “AA-” from Standard & Poor’s and of at least “Aa3” from Moody’s
and (b) on any other date, a long-term senior unsecured debt, deposit or credit
(as the case may be) rating of at least “A+” from Standard & Poor’s and of
at least “A1” from Moody’s.

 

“Requisite Noteholders”
means Series 2003-5 Noteholders holding more than 50% of the Series 2003-5
Invested Amount.

 

“Restricted Global
Class A-1 Note” is defined in Section 5.1.

 

“Restricted Global
Class A-2 Note” is defined in Section 5.1.

 

“Series 1998-1 Notes”
means the Series of Notes designated as the Series 1998-1 Notes.

 

“Series 2000-2 Notes”
means the Series of Notes designated as the Series 2000-2 Notes.

 

“Series 2000-3 Notes”
means the Series of Notes designated as the Series 2000-3 Notes.

 

“Series 2000-4 Notes”
means the Series of Notes designated as the Series 2000-4 Notes.

 

“Series 2001-1 Notes”
means the Series of Notes designated as the Series 2001-1 Notes.

 

“Series 2001-2 Notes”
means the Series of Notes designated as the Series 2001-2 Notes.

 

“Series 2002-1 Notes”
means the Series of Notes designated as the Series 2002-1 Notes.

 

“Series 2002-2 Notes”
means the Series of Notes designated as the Series 2002-2 Notes.

 

8

 

“Series 2002-3 Notes”
means the Series of Notes designated as the Series 2002-3 Notes.

 

“Series 2002-4 Notes”
means the Series of Notes designated as the Series 2002-4 Notes.

 

“Series 2003-1 Notes”
means the Series of Notes designated as the Series 2003-1 Notes.

 

“Series 2003-2 Notes”
means the Series of Notes designated as the Series 2003-2 Notes.

 

“Series 2003-3 Notes”
means the Series of Notes designated as the Series 2003-3 Notes.

 

“Series 2003-4 Notes”
means the Series of Notes designated as the Series 2003-4 Notes.

 

“Series 2003-5
Accounts” means each of the Series 2003-5 Distribution Account, the Series
2003-5 Reserve Account, the Series 2003-5 Collection Account, the Series 2003-5
Excess Collection Account and the Series 2003-5 Accrued Interest Account.

 

“Series 2003-5 Accrued
Interest Account” is defined in Section 2.1(b).

 

“Series 2003-5 Adjusted Monthly Interest” means
(a) for the initial Distribution Date, an amount equal to $1,158,222.22 and (b)
for any other Distribution Date, the sum of (i) the sum of (A) for the Series
2003-5 Interest Period ending on the day preceding such Distribution Date, an
amount equal to the product of (1) the Class A-1 Note Rate and (2) the Class
A-1 Outstanding Principal Amount on the first day of such Series 2003-5
Interest Period, divided by twelve and (B) an amount equal to the product of
(1) the Class A-2 Note Rate for such Series 2003-5 Interest Period, (2) the
Class A-2 Outstanding Principal Amount on the first day of such Series 2003-5
Interest Period and (3) a fraction, the numerator of which is the number of
days in such Series 2003-5 Interest Period and the denominator of which is 360
and (ii) any amount described in clause (b)(i) with respect to a prior
Distribution Date that remains unpaid as of such Distribution Date (together
with any accrued interest on such amount).

 

“Series 2003-5 Agent” is defined in the
recitals hereto.

 

“Series 2003-5 AESOP I Operating Lease Loan
Agreement Borrowing Base” means, as of any date of determination, the
product of (a) the Series 2003-5 AESOP I Operating Lease Vehicle Percentage as
of such date and (b) the AESOP I Operating Lease Loan Agreement Borrowing Base
as of such date.

 

“Series 2003-5 AESOP I Operating Lease Vehicle
Percentage” means, as of any date of determination, a fraction, expressed
as a percentage (which percentage shall never exceed 100%), the numerator of
which is the Series 2003-5 Required AESOP I Operating Lease Vehicle Amount as
of such date and the denominator of which is the sum of the Required AESOP I
Operating Lease Vehicle Amounts for all Series of Notes as of such date.

 

9

 

“Series 2003-5
Available Cash Collateral Account Amount” means, as of any date of determination,
the amount on deposit in the Series 2003-5 Cash Collateral Account (after
giving effect to any deposits thereto and withdrawals and releases therefrom on
such date).

 

“Series-2003-5
Available Reserve Account Amount” means, as of any date of determination,
the amount on deposit in the Series 2003-5 Reserve Account (after giving effect
to any deposits thereto and with­drawals and releases therefrom on such date).

 

“Series 2003-5 Cash Collateral Account” is
defined in Section 2.8(f).

 

“Series 2003-5 Cash Collateral Account Collateral”
is defined in Section 2.8(a).

 

“Series 2003-5 Cash Collateral Account Surplus”
means, with respect to any Distribution Date, the lesser of (a) the Series
2003-5 Available Cash Collateral Account Amount and (b) the lesser of (A) the
excess, if any, of the Series 2003-5 Liquidity Amount (after giving effect to
any withdrawal from the Series 2003-5 Reserve Account on such Distribution
Date) over the Series 2003-5 Required Liquidity Amount on such Distribution
Date and (B) the excess, if any, of the Series 2003-5 Enhancement Amount (after
giving effect to any withdrawal from the Series 2003-5 Reserve Account on such
Distribution Date) over the Series 2003-5 Required Enhancement Amount on such
Distribution Date; provided, however that, on any date after the
Series 2003-5 Letter of Credit Termination Date, the Series 2003-5 Cash
Collateral Account Surplus shall mean the excess, if any, of (x) the Series
2003-5 Available Cash Collateral Account Amount over (y) the Series 2003-5 Demand
Note Payment Amount minus  the Pre-Preference Period Demand Note
Payments as of such date.

 

“Series 2003-5 Cash
Collateral Percentage” means, as of any date of determination, the
percentage equivalent of a fraction, the numerator of which is the Series
2003-5 Available Cash Collateral Amount as of such date and the denominator of
which is the Series 2003-5 Letter of Credit Liquidity Amount as of such date.

 

“Series 2003-5 Closing
Date” means October 9, 2003.

 

“Series 2003-5
Collateral” means the Collateral, each Series 2003-5 Letter of Credit, each
Series 2003-5 Demand Note, the Series 2003-5 Distribution Account Collateral,
the Series 2003-5 Interest Rate Cap Collateral, the Series 2003-5 Cash
Collateral Account Collateral and the Series 2003-5 Reserve Account Collateral.

 

“Series 2003-5
Collection Account” is defined in Section 2.1(b).

 

“Series 2003-5
Controlled Amortization Period” means the Class A-1 Controlled Amortization
Period and/or the Class A-2 Controlled Amortization Period, as the case may be.

 

“Series 2003-5 Demand Note” means each demand
note made by a Demand Note Issuer, substantially in the form of Exhibit C
to this Supplement, as amended, modified or restated from time to time.

 

“Series 2003-5 Demand
Note Payment Amount” means, as of the Series 2003-5 Letter of Credit
Termination Date, the aggregate amount of all proceeds of demands made on the

 

10

 

Series 2003-5
Demand Notes pursuant to Section 2.5(b) or (c) that were deposited into
the Series 2003-5 Distribution Account and paid to the Series 2003-5
Noteholders during the one year period ending on the Series 2003-5 Letter of
Credit Termination Date; provided, however, that if an Event of
Bankruptcy (or the occurrence of an event described in clause (a) of the
definition thereof, without the lapse of a period of sixty (60) consecutive
days) with respect to a Demand Note Issuer shall have occurred during such one
year period, the Series 2003-5 Demand Note Payment Amount as of the Series 2003-5
Letter of Credit Termination Date shall equal the Series 2003-5 Demand Note
Payment Amount as if it were calculated as of the date of such occurrence.

 

“Series 2003-5 Deposit
Date” is defined in Section 2.2.

 

“Series 2003-5
Distribution Account” is defined in Section 2.9(a).

 

“Series 2003-5
Distribution Account Collateral” is defined in Section 2.9(d).

 

“Series 2003-5
Eligible Letter of Credit Provider” means a person satisfactory to ARAC,
the Demand Note Issuers and the Surety Provider and having, at the time of the
issuance of the related Series 2003-5 Letter of Credit, a long-term senior
unsecured debt rating (or the equivalent thereof in the case of Moody’s or
Standard & Poor’s, as applicable) of at least “A+” from Standard &
Poor’s and at least “Al” from Moody’s and a short-term senior unsecured debt
rating of at least “A-1” from Standard & Poor’s and “P-1” from Moody’s that
is (a) a commercial bank having total assets in excess of $500,000,000, (b) a
finance company, insurance company or other financial institution that in the
ordinary course of business issues letters of credit and has total assets in
excess of $200,000,000 or (c) any other financial institution; provided,
however, that if a person is not a Series 2003-5 Letter of Credit
Provider (or a letter of credit provider under the Supplement for any other
Series of Notes), then such person shall not be a Series 2003-5 Eligible Letter
of Credit Provider until AFC-II has provided ten (10) days’ prior notice to the
Rating Agencies that such person has been proposed as a Series 2003-5 Letter of
Credit Provider.

 

“Series 2003-5
Enhancement” means the Series 2003-5 Cash Collateral Account Collateral,
the Series 2003-5 Letters of Credit, the Series 2003-5 Demand Notes, the Series
2003-5 Overcollateralization Amount and the Series 2003-5 Reserve Account
Amount.

 

“Series 2003-5
Enhancement Amount” means, as of any date of determination, the sum of (i)
the Series 2003-5 Overcollateralization Amount as of such date, (ii) the Series
2003-5 Letter of Credit Amount as of such date, (iii) the Series 2003-5
Available Reserve Account Amount as of such date and (iv) the amount of cash
and Permitted Investments on deposit in the Series 2003-5 Collection Account
(not including amounts allocable to the Series 2003-5 Accrued Interest Account)
and the Series 2003-5 Excess Collection Account as of such date.

 

“Series 2003-5
Enhancement Deficiency” means, on any date of determination, the amount by
which the Series 2003-5 Enhancement Amount is less than the Series 2003-5 Required
Enhancement Amount as of such date.

 

“Series 2003-5 Excess
Collection Account” is defined in Section 2.1(b).

 

11

 

“Series 2003-5 Final
Distribution Date” means the Class A-1 Final Distribution Date or the Class
A-2 Final Distribution Date.

 

“Series 2003-5 Initial
Invested Amount” means the sum of the Class A-1 Initial Invested Amount and
the Class A-2 Initial Invested Amount.

 

“Series 2003-5
Interest Period” means a period commencing on and including a Distribution
Date and ending on and including the day preceding the next succeeding
Distribution Date; provided, however that the initial Series
2003-5 Interest Period shall commence on and include the Series 2003-5 Closing
Date and end on and include November 19, 2003.

 

“Series 2003-5
Interest Rate Cap” is defined in Section 2.10(a).

 

“Series 2003-5
Interest Rate Cap Collateral” is defined in Section 2.10(c).

 

“Series 2003-5
Interest Rate Cap Counterparty” means AFC-II’s counterparty under any
Series 2003-5 Interest Rate Cap.

 

“Series 2003-5
Interest Rate Cap Proceeds” means the amounts received by the Trustee from
a Series 2003-5 Interest Rate Cap Counterparty from time to time in respect of
any Series 2003-5 Interest Rate Cap (including amounts received from a
guarantor or from collateral).

 

“Series 2003-5 Invested Amount” means, as of
any date of determination, the sum of the Class A-1 Invested Amount as of such
date and the Class A-2 Invested Amount as of such date.

 

“Series
2003-5 Invested Percentage” means as of any date of determination:

 

(a)           when used with respect to Principal
Collections, the percentage equivalent (which percentage shall never exceed
100%) of a fraction the numerator of which shall be equal to the sum of the
Series 2003-5 Invested Amount and the Series 2003-5 Overcollateralization
Amount, determined during the Series 2003-5 Revolving Period as of the end of
the Related Month (or, until the end of the initial Related Month, on the
Series 2003-5 Closing Date), or, during the Series 2003-5 Controlled
Amortization Period and the Series 2003-5 Rapid Amortization Period, as of the
end of the Series 2003-5 Revolving Period, and the denominator of which shall
be the greater of (I) the Aggregate Asset Amount as of the end of the Related
Month or, until the end of the initial Related Month, as of the Series 2003-5
Closing Date, and (II) as of the same date as in clause (I), the sum of the
numerators used to determine (i) invested percentages for allocations with
respect to Principal Collections (for all Series of Notes and all classes of
such Series of Notes) and (ii) overcollateralization percentages for
allocations with respect to Principal Collections (for all Series of Notes that
provide for credit enhancement in the form of overcollateralization); and

 

(b)           when used with respect to Interest
Collections, the percentage equivalent (which percentage shall never exceed
100%) of a fraction the numerator of which shall be

 

12

 

the Accrued
Amounts with respect to the Series 2003-5 Notes on such date of determination,
and the denominator of which shall be the aggregate Accrued Amounts with
respect to all Series of Notes on such date of determination.

 

“Series 2003-5 Lease Interest Payment
Deficit” means on any Distribution Date an amount equal to the excess, if
any, of (a) the aggregate amount of Interest Collections which pursuant to
Section 2.2(a), (b), (c) or (d) would have been allocated to the Series 2003-5
Accrued Interest Account if all payments of Monthly Base Rent required to have
been made under the Leases from and excluding the preceding Distribution Date
to and including such Distribution Date were made in full over (b) the
aggregate amount of Interest Collections which pursuant to Section 2.2(a), (b),
(c) or (d) have been allocated to the Series 2003-5 Accrued Interest Account
(excluding any amounts paid into the Series 2003-5 Accrued Interest Account
pursuant to the proviso in Sections 2.2(c)(ii) and/or 2.2(d)(ii)) from and
excluding the preceding Distribution Date to and including such Distribution
Date.

 

“Series 2003-5 Lease Payment Deficit”
means either a Series 2003-5 Lease Interest Payment Deficit or a Series 2003-5
Lease Principal Payment Deficit.

 

“Series 2003-5 Lease
Principal Payment Carryover Deficit” means (a) for the initial Distribution
Date, zero and (b) for any other Distribution Date, the excess of (x) the
Series 2003-5 Lease Principal Payment Deficit, if any, on the preceding
Distribution Date over (y) the amount deposited in the Distribution
Account on such preceding Distribution Date pursuant to Section 2.5(b) on
account of such Series 2003-5 Lease Principal Payment Deficit.

 

“Series 2003-5 Lease Principal Payment Deficit” means on any
Distribution Date the sum of (a) the Series 2003-5 Monthly Lease Principal
Payment Deficit for such Distribution Date and (b) the Series 2003-5 Lease
Principal Payment Carryover Deficit for such Distribution Date.

 

“Series 2003-5 Letter of Credit” means an
irrevocable letter of credit, if any, substantially in the form of Exhibit D
to this Supplement issued by a Series 2003-5 Eligible Letter of Credit Provider
in favor of the Trustee for the benefit of the Series 2003-5 Noteholders and
the Surety Provider in form and substance satisfactory to the Surety Provider.

 

“Series 2003-5 Letter of Credit Amount” means,
as of any date of determination, the lesser of (a) the sum of (i) the
aggregate amount available to be drawn on such date under each Series 2003-5
Letter of Credit, as specified therein, and (ii) if the Series 2003-5 Cash
Collateral Account has been established and funded pursuant to
Section 2.8, the Series 2003-5 Available Cash Collateral Account Amount on
such date and (b) the aggregate outstanding principal amount of the Series 2003-5
Demand Notes on such date.

 

“Series 2003-5 Letter of Credit Expiration Date”
means, with respect to any Series 2003-5 Letter of Credit, the expiration date
set forth in such Series 2003-5 Letter of Credit, as such date may be extended
in accordance with the terms of such Series 2003-5 Letter of Credit.

 

“Series 2003-5 Letter of Credit Liquidity Amount”
means, as of any date of determination, the sum of (a) the aggregate amount
available to be drawn on such date under

 

13

 

each Series 2003-5 Letter of Credit, as specified
therein, and (b) if the Series 2003-5 Cash Collateral Account has been
established and funded pursuant to Section 2.8, the Series 2003-5
Available Cash Collateral Account Amount on such date.

 

“Series 2003-5 Letter of Credit Provider” means
the issuer of a Series 2003-5 Letter of Credit.

 

“Series 2003-5
Letter of Credit Termination Date” means the first to occur of (a) the
date on which the Series 2003-5 Notes are fully paid and the Surety Provider has
been paid all Surety Provider Fees and all other Surety Provider Reimbursement
Amounts then due, (b) the Series 2003-5 Termination Date and (c) such earlier
date consented to by the Surety Provider and the Rating Agencies which consent
by the Surety Provider shall be in writing.

 

“Series 2003-5 Limited
Liquidation Event of Default” means, so long as such event or condition
continues, any event or condition of the type specified in clauses (a) through
(j) of Article III; provided, however, that any event or
condition of the type specified in clauses (a) through (e) and (h) through (j)
of Article III shall not constitute a Series 2003-5 Limited Liquidation Event
of Default if (i) within such thirty (30) day period, such Amortization Event
shall have been cured and, after such cure of such Amortization Event is
provided for, the Trustee shall have received the written consent of the Surety
Provider waiving the occurrence of such Series 2003-5 Limited Liquidation Event
of Default or (ii) the Trustee shall have received the written consent of the
Surety Provider waiving the occurrence of such Series 2003-5 Limited
Liquidation Event of Default.

 

“Series 2003-5
Liquidity Amount” means, as of any date of determination, the sum of (a)
the Series 2003-5 Letter of Credit Liquidity Amount on such date and (b) the
Series 2003-5 Available Reserve Account Amount on such date.

 

“Series 2003-5 Maximum
Aggregate Kia/Isuzu/Subaru/Hyundai/Suzuki Amount” means, as of any day,
with respect to Kia, Isuzu, Subaru, Hyundai and Suzuki, in the aggregate, an
amount equal to 15% of the aggregate Net Book Value of all Vehicles leased
under the Leases on such day or such lesser percentage as may be agreed to in
writing by AFC-II and the Surety Provider of the aggregate Net Book Value of all
Vehicles leased under the Leases on such day.

 

“Series 2003-5 Maximum
Amount” means any of the Series 2003-5 Maximum Manufacturer Amounts, the
Series 2003-5 Maximum Non-Eligible Manufacturer Amount, the Series 2003-5
Maximum Non-Program Vehicle Amount or the Series 2003-5 Maximum Specified
States Amount.

 

“Series 2003-5 Maximum
Individual Kia/Isuzu/Subaru/Hyundai/Suzuki Amount” means, as of any day,
with respect to Kia, Isuzu, Subaru, Hyundai or Suzuki, individually, an amount
equal to 5% of the aggregate Net Book Value of all Vehicles leased under the
Leases on such day.

 

“Series 2003-5 Maximum
Manufacturer Amount” means, as of any day, any of the Series 2003-5 Maximum
Mitsubishi Amount, the Series 2003-5 Maximum Individual
Kia/Isuzu/Subaru/Hyundai/Suzuki Amount or the Series 2003-5 Maximum Aggregate
Kia/Isuzu/Subaru/Hyundai/Suzuki Amount.

 

14

 

“Series 2003-5 Maximum
Mitsubishi Amount” means, as of any day, an amount equal to 10% of the
aggregate Net Book Value of all Vehicles leased under the Leases on such day.

 

“Series 2003-5 Maximum
Non-Eligible Manufactur­er Amount” means, as of any day, an amount equal to
3% of the aggregate Net Book Value of all Vehicles leased under the Leases on
such day.

 

“Series 2003-5 Maximum
Non-Program Vehicle Amount” means, as of any day, an amount equal to the
Series 2003-5 Maximum Non-Program Vehicle Percentage of the aggregate Net Book
Value of all Vehicles leased under the Leases on such day.

 

“Series 2003-5 Maximum
Non-Program Vehicle Percentage” means 25% or such lesser percentage as may
be agreed to in writing by AFC-II and the Surety Provider on or after the
Series 2003-5 Closing Date, with prompt written notice thereof delivered by
AFC-II to the Trustee.

 

“Series 2003-5 Maximum
Specified States Amount” means, as of any day, an amount equal to 7.5% of
the aggregate Net Book Value of all Vehicles leased under the Leases on such
day.

 

“Series 2003-5 Monthly
Interest” means, with respect to any Series 2003-5 Interest Period, the sum
of the Class A-1 Monthly Interest and the Class A-2 Monthly Interest with
respect to such Series 2003-5 Interest Period.

 

“Series 2003-5 Monthly Lease Principal Payment
Deficit” means, on any Distribution Date, an amount equal to the excess, if
any, of (a) the aggregate amount of Principal Collections which pursuant to
Section 2.2(a), (b), (c) or (d) would have been allocated to the Series 2003-5
Collection Account if all payments required to have been made under the Leases
from and excluding the preceding Distribution Date to and including such
Distribution Date were made in full over (b) the aggregate amount of Principal
Collections which pursuant to Section 2.2(a), (b), (c) or (d) have been
allocated to the Series 2003-5 Collection Account (without giving effect to any
amounts paid into the Series 2003-5 Accrued Interest Account pursuant to the
proviso in Sections 2.2(c)(ii) and/or 2.2(d)(ii)) from and excluding the
preceding Distribution Date to and including such Distribution Date.

 

“Series 2003-5
Non-Program Vehicle Percentage” means, as of any date of deter­mination, a
fraction, expressed as a percentage, the numerator of which is the aggregate
Net Book Value of all Non-Program Vehicles leased under the AESOP I Operating
Lease as of such date and the denominator of which is the aggregate Net Book
Value of all Vehicles leased under the AESOP I Operating Lease as of such date.

 

“Series 2003-5 Note
Rate” means, the Class A-1 Note Rate or the Class A-2 Rate, as the context
may require.

 

“Series 2003-5
Noteholder” means any Class A-1 Noteholder or any Class A-2 Noteholder.

 

15

 

“Series 2003-5 Notes”
means, collectively, the Class A-1 Notes and the Class A-2 Notes.

 

“Series 2003-5
Outstanding Principal Amount” means, as of any date of determination, the
sum of the Class A-1 Outstanding Principal Amount and the Class A-2 Outstanding
Principal Amount.

 

“Series 2003-5
Overcollateralization Amount” means (i) as of any date on which no AESOP I
Operating Lease Vehicle Deficiency exists, the Series 2003-5 Required
Overcollateralization Amount as of such date and (ii) as of any date on which
an AESOP I Operating Lease Vehicle Deficiency exists, the excess, if any, of
(x) the Series 2003-5 AESOP I Operating Lease Loan Agreement Borrowing Base as
of such date over (y) the Series 2003-5 Invested Amount as of such date.

 

“Series 2003-5 Past
Due Rent Payment” is defined in Section 2.2(g).

 

“Series 2003-5
Percentage” means, as of any date of determination, a fraction, expressed
as a per­centage, the numerator of which is the Series 2003-5 Invested Amount
as of such date and the denominator of which is the Aggregate Invested Amount
as of such date.

 

“Series 2003-5
Principal Allocation” is defined in Section 2.2(a)(ii).

 

“Series 2003-5 Program
Vehicle Percentage” means, as of any date of determination, 100% minus
the Series 2003-5 Non-Program Vehicle Percentage.

 

“Series 2003-5 Rapid
Amortization Period” means the period beginning at the close of business on
the Business Day immediately preceding the day on which an Amortization Event
is deemed to have occurred with respect to the Series 2003-5 Notes and ending
upon the earliest to occur of (i) the date on which the Series 2003-5 Notes are
fully paid and the Surety Provider has been paid all Surety Provider Fees and
all other Surety Provider Reimbursement Amounts then due, (ii) the Series
2003-5 Termination Date and (iii) the termination of the Indenture.

 

“Series 2003-5
Reimbursement Agreement” means any and each agreement provid­ing for the
reimbursement of a Series 2003-5 Letter of Credit Provider for draws  under its Series 2003-5 Letter of Credit as
the same may be amended, supplemented, restated or otherwise modified from time
to time.

 

“Series 2003-5
Repurchase Amount” is defined in Section 6.1.

 

“Series 2003-5
Required AESOP I Operating Lease Vehicle Amount” means, as of any date of
determination, the sum of the Series 2003-5 Invested Amount and the Series  2003-5 Required Overcollateralization Amount
as of such date.

 

“Series 2003-5
Required Enhancement Amount” means, as of any date of determi­nation, the
sum of (i) the product of the Series 2003-5 Required Enhancement Percentage as
of such date and the Series 2003-5 Invested Amount as of such date, (ii) the
Series 2003-5 AESOP I Operating Lease Vehicle Per­centage as of the immediately
preceding Business Day of

 

16

 

the excess, if
any, of the Non-Program Vehicle Amount as of such date over the Series 2003-5
Maximum Non-Program Vehicle Amount as of such date, (iii) the Series 2003-5
AESOP I Operating Lease Vehicle Percentage as of the immediately preceding
Business Day of the excess, if any, of the aggregate Net Book Value of all
Vehicles manufactured by Mitsubishi and leased under the Leases as of such date
over the Series 2003-5 Maximum Mitsubishi Amount as of such date, (iv) the
Series 2003-5 AESOP I Operating Lease Vehicle Percentage as of the immediately
preceding Business Day of the excess, if any, of the aggre­gate Net Book Value
of all Vehicles manufac­tured by Kia, Isuzu, Subaru, Hyundai or Suzuki,
individually, and leased under the Leases as of such date over the Series
2003-5 Maximum Individual Kia/Isuzu/Subaru/ Hyundai/Suzuki Amount as of such
date, (v) the Series 2003-5 AESOP I Operating Lease Vehicle Percentage as of
the immediately preceding Business Day of the excess, if any, of the aggregate
Net Book Value of all Vehicles manufactured by Kia, Isuzu, Subaru, Hyundai or
Suzuki, in the aggregate, and leased under the Leases as of such date over the
Series 2003-5 Maximum Aggre­gate Kia/Isuzu/Subaru/Hyundai/Suzuki Amount as of
such date, (vi) the Series 2003-5 AESOP I Operating Lease Vehicle Percentage as
of the immediately preceding Business Day of the excess, if any, of the
Specified States Amount as of such date over the Series 2003-5 Maximum
Specified States Amount as of such date and (vii) the Series 2003-5 AESOP I
Operating Lease Vehicle Percentage as of the immediately preceding Business Day
of the excess, if any, of the Non-Eligible Manufacturer Amount as of such date
over the Series 2003-5 Maximum Non-Eligible Manufacturer Amount as of such
date.

 

“Series 2003-5
Required Enhancement Percentage” means, as of any date of deter­mination,
the sum of (i) the product of (A) 14.65% times (B) the Series 2003-5 Program
Vehicle Percentage as of such date and (ii) the product of (A) the Series
2003-5 Required Non-Program Enhancement Percentage as of such date times (B)
the Series 2003-5 Non-Program Vehicle Percentage as of such date.

 

“Series 2003-5
Required Liquidity Amount” means, with respect to any Distribution Date, an
amount equal to 3.0% of the Series 2003-5 Invested Amount on such Distribution
Date (after giving effect to any payments of principal to be made on the Series
2003-5 Notes on such Distribution Date).

 

“Series 2003-5
Required Non-Program Enhancement Percentage” means, as of any date of
determination, the greater of (a) 20.25% and (b) the sum of (i) 20.25% and (ii)
the highest, for any calendar month within the preceding twelve calendar
months, of the greater of (x) an amount (not less than zero) equal to 100% minus
the Measurement Month Average for the immediately preceding Measurement Month
and (y) an amount (not less than zero) equal to 100% minus the Market
Value Average as of the Determination Date within such calendar month
(excluding the Market Value Average for any Determination Date which has not
yet occurred).

 

“Series 2003-5
Required Overcollateralization Amount” means, as of any date of determination,
the excess, if any, of the Series 2003-5 Required Enhancement Amount over the
sum of (i) the Series 2003-5 Letter of Credit Amount as of such date, (ii) the
Series 2003-5 Available Reserve Account Amount on such date and (iii) the
amount of cash and Permitted Investments on deposit in the Series 2003-5
Collection Account (not including amounts allocable

 

17

 

to the Series
2003-5 Accrued Interest Account) and the Series 2003-5 Excess Collection
Account on such date.

 

“Series 2003-5
Required Reserve Account Amount” means, with respect to any Distribution
Date, an amount equal to the greater of (a) the excess, if any, of the
Series 2003-5 Required Liquidity Amount on such Distribution Date over the
Series 2003-5 Letter of Credit Liquidity Amount on such Distribution Date
(after giving effect to any payments of principal to be made on the Series
2003-5 Notes on such Distribution Date) and (b) the excess, if any, of the
Series 2003-5 Required Enhancement Amount over the Series 2003-5 Enhancement
Amount (excluding therefrom the Series 2003-5 Available Reserve Account Amount
and calculated after giving effect to any payments of principal to be made on
the Series 2003-5 Notes) on such Distribution Date.

 

“Series 2003-5 Reserve
Account” is defined in Section 2.7(a).

 

“Series 2003-5 Reserve
Account Collateral” is defined in Section 2.7(d).

 

“Series 2003-5 Reserve
Account Surplus” means, with respect to any Distribution Date, the excess,
if any, of the Series 2003-5 Available Reserve Account Amount over the Series
2003-5 Required Reserve Account Amount on such Distribution Date.

 

“Series 2003-5
Revolving Period” means, the period from and including the Series 2003-5
Closing Date to the earlier of (i) the commencement of the Class A-1 Controlled
Amortization Period and (ii) the commencement of the Series 2003-5 Rapid
Amortization Period; provided that if the Class A-1 Notes are paid in
full on or prior to the December 2006 Distribution Date, then the Series 2003-5
Revolving Period shall also include the period from and including the first day
of the calendar month during which the Distribution Date on which the Class A-1
Notes are paid in full occurs to the earlier of (i) the commencement of the
Class A-2 Controlled Amortization Period and (ii) the commencement of the
Series 2003-5 Rapid Amortization Period.

 

“Series 2003-5
Shortfall” is defined in Section 2.3(g).

 

“Series 2003-5
Termination Date” means the December 2009 Distribution Date.

 

“Series 2003-5 Unpaid
Demand Amount” means, with respect to any single draw pursuant to Section
2.5(c) or (d) on the Series 2003-5 Letters of Credit, the aggregate amount
drawn by the Trustee on all Series 2003-5 Letters of Credit.

 

“Shadow Rating”
means the rating of the Series 2003-5 Notes by Standard & Poor’s or
Moody’s, as applicable, without giving effect to the Surety Bond.

 

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

 

“Supplement” is
defined in the preamble hereto.

 

18

 

“Surety Bond”
means the Note Guaranty Insurance Policy No. CA00724A, dated October 9, 2003,
issued by the Surety Provider.

 

“Surety Default”
means (i) the occurrence and continuance of any failure by the Surety Provider
to pay upon a demand for payment in accordance with the requirements of the
Surety Bond or (ii) the occurrence of an Event of Bankruptcy with respect to
the Surety Provider.

 

“Surety Provider”
means XL Capital Assurance Inc., a New York corporation.  The Surety Provider shall constitute an
“Enhancement Provider” with respect to the Series 2003-5 Notes for all purposes
under the Indenture and the other Related Documents.

 

“Surety Provider Fee”
is defined in the Insurance Agreement.

 

“Surety Provider
Reimbursement Amounts” means, as of any date of determination, (i) an
amount equal to the aggregate of any amounts due as of such date to the Surety
Provider pursuant to the Insurance Agreement in respect of unreimbursed draws
under the Surety Bond, including interest thereon determined in accordance with
the Insurance Agreement, and (ii) an amount equal to the aggregate of any
other amounts due as of such date to the Surety Provider pursuant to the
Insurance Agreement.

 

“Telerate Page 3750”
means the display page currently so designated on the Moneyline Telerate
Service (or such other page as may replace that page on that service for the
purpose of displaying comparable rates or prices).

 

“Temporary Global
Class A-1 Note” is defined in Section 5.2.

 

“Temporary Global
Class A-2 Note” is defined in Section 5.2.

 

“Termination Date Disbursement” means an amount
drawn under a Series 2003-5 Letter of Credit pursuant to a Certificate of
Termination Date Demand.

 

“Termination
Disbursement” means an amount drawn under a Series 2003-5 Letter of Credit
pursuant to a Certificate of Termination Demand.

 

“Trustee” is
defined in the recitals hereto.

 

“Unpaid Demand Note
Disbursement” means an amount drawn under a Series 2003-5 Letter of Credit
pursuant to a Certificate of Unpaid Demand Note Demand.

 

“Waivable Amount”
is defined in Article IV.

 

“Waiver Event”
means the occurrence of the delivery of a Waiver Request and the subsequent
waiver of any Series 2003-5 Maximum Amount.

 

“Waiver Request”
is defined in Article IV.

 

19

 

ARTICLE II

 

SERIES
2003-5 ALLOCATIONS

 

With
respect to the Series 2003-5 Notes, the following shall apply:

 

Section 2.1             Establishment of Series 2003-5
Collection Account, Series 2003-5 Excess Collection Account and Series 2003-5
Accrued Interest Account.  (a)  All
Collections allocable to the Series 2003-5 Notes shall be allocated to the
Collection Account.

 

(b)           The Trustee will create three
administrative subaccounts within the Collection Account for the benefit of the
Series 2003-5 Noteholders and the Surety Provider:  the Series 2003-5 Collection Account (such sub-account, the “Series
2003-5 Collection Account”), the Series 2003-5 Excess Collection Account
(such sub-account, the “Series 2003-5 Excess Collection Account”) and
the Series 2003-5 Accrued Interest Account (such sub-account, the “Series
2003-5 Accrued Interest Account”).

 

Section 2.2             Allocations with Respect to the
Series 2003-5 Notes.  The net proceeds from the initial sale of
the Series 2003-5 Notes will be deposited into the Collection Account.  On each Business Day on which Collections
are deposited into the Collection Account (each such date, a “Series 2003-5
Deposit Date”), the Administrator will direct the Trustee in writing
pursuant to the Administration Agreement to allocate all amounts deposited into
the Collection Account in accordance with the provisions of this Section 2.2:

 

(a)           Allocations
of Collections During the Series 2003-5 Revolving Period.  During the Series 2003-5 Revolving Period,
the Administrator will direct the Trustee in writing pursuant to the
Administration Agreement to allocate on each day, prior to 11:00 a.m. (New York
City time) on each Series 2003-5 Deposit Date, all amounts deposited into the
Collection Account as set forth below:

 

(i)            allocate to the
Series 2003-5 Collection Account an amount equal to the sum of (A) the Series
2003-5 Invested Percentage (as of such day) of the aggregate amount of Interest
Collections on such day and (B) any amounts received by the Trustee on such day
in respect of the Series 2003-5 Interest Rate Caps.  All such amounts allocated to the Series 2003-5 Collection
Account shall be further allocated to the Series 2003-5 Accrued Interest Account;
and

 

(ii)           allocate to the
Series 2003-5 Excess Collection Account an amount equal to the Series 2003-5
Invested Percentage (as of such day) of the aggregate amount of Principal
Collections on such day (for any such day, the “Series 2003-5 Principal
Allocation”); provided, however, if a Waiver Event shall have
occurred, then such allocation shall be modified as provided in Article IV.

 

(b)           Allocations
of Collections During any Series 2003-5 Controlled Amortization Period.  With respect to any Series 2003-5 Controlled
Amortization Period, the Administrator will direct the Trustee in writing
pursuant to the Administration Agreement to allocate, prior to 11:00 a.m.  (New York City time) on any Series 2003-5
Deposit Date, all amounts deposited into the Collection Account as set forth
below:

 

20

 

(i)            allocate to the
Series 2003-5 Collection Account an amount determined as set forth in Section
2.2(a)(i) above for such day, which amount shall be further allocated to the
Series 2003-5 Accrued Interest Account; and

 

(ii)           (A) with respect to
the Class A-1 Controlled Amortization Period, allocate to the Series 2003-5
Collection Account an amount equal to the Series 2003-5 Principal Allocation
for such day, which amount shall be used to make principal payments in respect
of the Class A-1 Notes; provided, however, that if the Monthly
Total Principal Allocation exceeds the Class A-1 Controlled Distribution
Amount, then the amount of such excess shall be allocated to the Series 2003-5
Excess Collection Account; and provided, further, that if a
Waiver Event shall have occurred, then such allocation shall be modified as
provided in Article IV and (B) with respect to the Class A-2 Controlled
Amortization Period, allocate to the Series 2003-5 Collection Account an amount
equal to the Series 2003-5 Principal Allocation for such day, which amount
shall be used to make principal payments in respect of the Class A-2 Notes; provided,
however, that if the Monthly Total Principal Allocation exceeds the
Class A-2 Controlled Distribution Amount, then the amount of such excess shall
be allocated to the Series 2003-5 Excess Collection Account; and provided,
further, that if a Waiver Event shall have occurred, then such
allocation shall be modified as provided in Article IV.

 

(c)           Allocations
of Collections During the Series 2003-5 Rapid Amortization Period.  With respect to the Series 2003-5 Rapid
Amortization Period, other than after the occurrence of an Event of Bankruptcy
with respect to ARAC, any other Lessee or AGH, the Adminis­trator will direct
the Trustee in writing pursuant to the Administration Agree­ment to allocate,
prior to 11:00 a.m. (New York City time) on any Series 2003-5 Deposit
Date, all amounts deposited into the Collection Account as set forth below:

 

(i)            allocate to the
Series 2003-5 Collection Account an amount deter­mined as set forth in Section
2.2(a)(i) above for such day, which amount shall be further allocated to the
Series 2003-5 Accrued Interest Account; and

 

(ii)           allocate to the
Series 2003-5 Collection Account an amount equal to the Series 2003-5 Principal
Allocation for such day, which amount shall be used to make principal payments
in respect of the Class A-1 Notes and the Class A-2 Notes, ratably, without
preference or priority of any kind, until the Series 2003-5 Invested Amount is
paid in full; provided that if on any Determination Date (A) the
Administrator determines that the amount anticipated to be available from
Interest Collections allocable to the Series 2003-5 Notes, any amounts payable
to the Trustee in respect of the Series 2003-5 Interest Rate Caps and other
amounts available pursuant to Section 2.3 to pay Series 2003-5 Adjusted Monthly
Interest on the next succeeding Distribution Date will be less than the Series
2003-5 Adjusted Monthly Interest for such Distribution Date and (B) the Series
2003-5 Enhancement Amount is greater than zero, then the Administrator shall
direct the Trustee in writing to reallocate a portion of the Principal
Collections allocated to the Series 2003-5 Notes during the Related Month equal
to the lesser

 

21

 

of such insufficiency and the Series 2003-5 Enhancement Amount to the
Series 2003-5 Accrued Interest Account to be treated as Interest Collections on
such Distribution Date.

 

(d)           Allocations
of Collections after the Occurrence of an Event of Bankruptcy.  After the occurrence of an Event of
Bankruptcy with respect to ARAC, any other Lessee or AGH, the Administrator
will direct the Trustee in writing pursuant to the Administration Agreement to
allocate, prior to 11:00 a.m.  (New York
City time) on any Series 2003-5 Deposit Date, all amounts attributable to the
AESOP I Operating Lease Loan Agreement deposited into the Collection Account as
set forth below:

 

(i)            allocate to the
Series 2003-5 Collection Account an amount equal to the sum of (A) the Series
2003-5 AESOP I Operating Lease Vehicle Percentage as of the date of the
occurrence of such Event of Bankruptcy of the aggregate amount of Interest
Collections made under the AESOP I Operating Lease Loan Agreement for such day
and (B) any amounts received by the Trustee in respect of the Series 2003-5
Interest Rate Caps on such day.  All
such amounts allocated to the Series 2003-5 Collection Account shall be further
allocated to the Series 2003-5 Accrued Interest Account;

 

(ii)           allocate to the
Series 2003-5 Col­lection Account an amount equal to the Series 2003-5 AESOP I
Operating Lease Vehicle Percentage as of the date of the occurrence of such
Event of Bankruptcy of the aggregate amount of Principal Collections made under
the AESOP I Operating Lease Loan Agree­ment, which amount shall be used to make
principal payments in respect of the Series Class A-1 Notes and the Class A-2
Notes, ratably, without preference or priority of any kind, until the Series
2003-5 Invested Amount is paid in full; provided that if on any
Determination Date (A) the Administrator determines that the amount anticipated
to be available from Interest Collections allocable to the Series 2003-5 Notes,
any amounts payable to the Trustee in respect of Series 2003-5 Interest Rate
Caps and other amounts available pursuant to Section 2.3 to pay Series 2003-5
Adjusted Monthly Interest on the next succeeding Distribution Date will be less
than the Series 2003-5 Adjusted Monthly Interest for such Distribution Date and
(B) the Series 2003-5 Enhancement Amount is greater than zero, then the
Administrator shall direct the Trustee in writing to reallocate a portion of
the Principal Collections allocated to the Series 2003-5 Notes during the
Related Month equal to the lesser of such insufficiency and the Series 2003-5
Enhancement Amount to the Series 2003-5 Accrued Interest Account to be treated
as Interest Collections on such Distribution Date.

 

(e)           Series
2003-5 Excess Collection Account. 
Amounts allocated to the Series 2003-5 Excess Collection Account on any
Series 2003-5 Deposit Date will be (w) first, deposited in the Series 2003-5
Reserve Account in an amount up to the excess, if any, of the Series 2003-5
Required Reserve Account Amount for such date over the Series 2003-5 Available
Reserve Account Amount for such date, (x) second, used to pay the principal
amount of other Series of Notes that are then in amortization, (y) third,
released to AESOP Leasing in an amount equal to the product of (A) the Loan 

 

22

 

Agreement’s Share with respect to the AESOP I
Operating Lease Loan Agreement as of such date times (B) 100% minus the
Loan Payment Allocation Percentage with respect to the AESOP I Operating Lease
Loan Agreement as of such date times (C) the amount of any remaining funds and
(z) fourth, paid to AFC-II for any use permitted by the Related Documents
including to make Loans under the Loan Agreements to the extent the Borrowers
have requested Loans thereunder and Eligible Vehicles are available for
financing thereunder; provided, however, that in the case of
clauses (x), (y) and (z), that no Amortization Event, Series 2003-5 Enhancement
Deficiency or AESOP I Operating Lease Vehicle Deficiency would result there­from
or exist immedi­ately thereafter.  Upon
the occurrence of an Amor­tization Event, funds on deposit in the Series 2003-5
Excess Collection Account will be with­drawn by the Trustee, deposited in the
Series 2003-5 Collection Account and allocated as Princi­pal Collections to
reduce the Series 2003-5 Invest­ed Amount on the immediately succeeding
Distribution Date.

 

(f)            Allocations
From Other Series.  Amounts
allocated to other Series of Notes that have been reallocated by AFC-II to the
Series 2003-5 Notes (i) during the Series 2003-5 Revolving Period shall be
allocated to the Series 2003-5 Excess Collection Account and applied in
accordance with Section 2.2(e) and (ii) during the Series 2003-5 Amortization
Period shall be allocated to the Series 2003-5 Collection Account and applied
in accordance with Section 2.2(b) or 2.2(c), as applicable, to make principal
payments in respect of the Series 2003-5 Notes.

 

(g)           Past
Due Rent Payments.  Notwithstanding
the foregoing, if in the case of Section 2.2(a) or (b), after the occurrence of
a Series 2003-5 Lease Payment Deficit, the Lessees shall make pay­ments of
Monthly Base Rent or other amounts payable by the Lessees under the Leases on
or prior to the fifth Business Day after the occurrence of such Series 2003-5
Lease Payment Deficit (a “Past Due Rent Payment”), the Administrator
shall direct the Trustee in writing pursuant to the Administration Agreement to
allocate to the Series 2003-5 Collection Account an amount equal to the Series
2003-5 Invested Percentage as of the date of the occurrence of such Series
2003-5 Lease Payment Deficit of the Collections attributable to such Past Due
Rent Payment (the “Series 2003-5 Past Due Rent Payment”).  The Administrator shall instruct the Trustee
in writing pursuant to the Administration Agreement to withdraw from the Series
2003-5 Collection Account and apply the Series 2003-5 Past Due Rent Payment in
the following order:

 

(i)            if the occurrence
of such Series 2003-5 Lease Payment Deficit resulted in one or more Lease
Deficit Disbursements being made under the Series 2003-5 Letters of Credit, pay
to each Series 2003-5 Letter of Credit Provider who made such a Lease Deficit
Disbursement for application in accor­dance with the provisions of the
applicable Series 2003-5 Reimbursement Agreement an amount equal to the lesser
of (x) the unreimbursed amount of such Series 2003-5 Letter of Credit
Provider’s Lease Deficit Disbursement and (y) such Series 2003-5 Letter of
Credit Provider’s Pro Rata Share of the Series 2003-5 Past Due Rent Payment;

 

(ii)           if the occurrence
of such Series 2003-5 Lease Payment Deficit resulted in a withdrawal being made
from the Series 2003-5 Cash Collateral

 

23

 

Account, deposit in the Series 2003-5 Cash Collateral Account an amount
equal to the lesser of (x) the amount of the Series 2003-5 Past Due Rent
Payment remaining after any payment pursuant to clause (i) above and (y) the
amount withdrawn from the Series 2003-5 Cash Collateral Account on account of
such Series 2003-5 Lease Payment Deficit;

 

(iii)          if the occurrence
of such Series 2003-5 Lease Payment Deficit resulted in a withdrawal being made
from the Series 2003-5 Reserve Account pursuant to Section 2.3(d), deposit in
the Series 2003-5 Reserve Account an amount equal to the lesser of (x) the
amount of the Series 2003-5 Past Due Rent Payment remaining after any payments
pursuant to clauses (i) and (ii) above and (y) the excess, if any, of the
Series 2003-5 Required Reserve Account Amount over the Series 2003-5 Available
Reserve Account Amount on such day;

 

(iv)          allocate to the
Series 2003-5 Accrued Interest Account the amount, if any, by which the Series
2003-5 Lease Interest Payment Deficit, if any, relating to such Series 2003-5
Lease Payment Deficit exceeds the amount of the Series 2003-5 Past Due Rent
Payment applied pursuant to clauses (i), (ii) and (iii) above; and

 

(v)           treat the remaining
amount of the Series 2003-5 Past Due Rent Payment as Principal Collections
allocated to the Series 2003-5 Notes in accordance with Section 2.2(a)(ii) or
2.2(b)(ii), as the case may be.

 

Section 2.3             Payments to Noteholders. 
On each Determination Date, as provided below, the Administrator shall
instruct the Paying Agent in writing pursuant to the Administration Agreement
to with­draw, and on the following Distribution Date the Paying Agent, acting
in accordance with such instructions, shall withdraw the amounts required to be
withdrawn from the Collection Account pursuant to Section 2.3(a) below in
respect of all funds available from Series 2003-5 Interest Rate Cap
Proceeds and Interest Collections processed since the preceding Distribution
Date and allocated to the holders of the Series 2003-5 Notes.

 

(a)           Note Interest with respect to the
Series 2003-5 Notes.  On each
Determination Date, the Administrator shall instruct the Trustee and the Paying
Agent in writing pursuant to the Administration Agreement as to the amount to
be withdrawn and paid pursuant to Section 2.4 from the Series 2003-5 Accrued
Interest Account to the extent funds are anticipated to be available from
Interest Collections allocable to the Series 2003-5 Notes and the
Series 2003-5 Interest Rate Cap Proceeds processed from but not including
the preceding Distribution Date through the succeeding Distribution Date in
respect of (x) first, an amount equal to the Series 2003-5 Monthly Interest for
the Series 2003-5 Interest Period ending on the day preceding the related
Distribution Date, (y) second, an amount equal to the amount of any unpaid
Series 2003-5 Shortfall as of the preceding Distribution Date (together with
any accrued interest on such Series 2003-5 Shortfall) and (z) third, an amount
equal to the Surety Provider Fee for such Series 2003-5 Interest Period plus
any Surety Provider Reimbursement Amounts then due and owing.  On the following Distribution Date, the
Trustee shall withdraw the amounts described in the first sentence of this
Section 2.3(a) from the Series 2003-5 Accrued Interest Account and deposit
such amounts in the Series 2003-5 Distribution Account.

 

24

 

(b)           Lease Payment Deficit Notice.  On or before 10:00 a.m. (New York City time)
on each Distribution Date, the Administrator shall notify the Trustee and the
Surety Provider of the amount of any Series 2003-5 Lease Payment Deficit, such
notification to be in the form of Exhibit E to this Supplement (each a “Lease
Payment Deficit Notice”).

 

(c)           Draws on Series 2003-5 Letters of
Credit For Series 2003-5 Lease Interest Payment Deficits.  If the Administrator determines on any
Distribution Date that there exists a Series 2003-5 Lease Interest Payment
Deficit, the Administrator shall instruct the Trustee in writing to draw on the
Series 2003-5 Letters of Credit, if any, and, the Trustee shall, by 12:00 noon
(New York City time) on such Distribution Date draw an amount as set forth in
such notice equal to the least of (i) such Series 2003-5 Lease Interest Payment
Deficit, (ii) the excess, if any, of the sum of the amounts described in
clauses (x), (y) and (z) of Section 2.3(a) above on such Distribution Date over
the amounts available from the Series 2003-5 Accrued Interest Account and (iii)
the Series 2003-5 Letter of Credit Liquidity Amount on the Series 2003-5
Letters of Credit by presenting to each Series 2003-5 Letter of Credit Provider
(with a copy to the Surety Provider) a draft accompanied by a Certificate of
Lease Deficit Demand and shall cause the Lease Deficit Disbursements to be
deposited in the Series 2003-5 Distribution Account on such Distribution Date; provided,
however, that if the Series 2003-5 Cash Collateral Account has been
established and funded, the Trustee shall withdraw from the Series 2003-5 Cash
Collateral Account and deposit in the Series 2003-5 Distribution Account an
amount equal to the lesser of (x) the Series 2003-5 Cash Collateral Percentage
on such Distribution Date of the least of the amounts described in clauses (i),
(ii) and (iii) above and (y) the Series 2003-5 Available Cash Collateral
Account Amount on such Distribution Date and draw an amount equal to the
remainder of such amount on the Series 2003-5 Letters of Credit.  During the continuance of a Surety Default,
no amounts in respect of the Surety Provider Fee shall be drawn on the Series
2003-5 Letters of Credit.

 

(d)           Withdrawals from Series 2003-5
Reserve Account.  If the
Administrator determines on any Distribution Date that the amounts available
from the Series 2003-5 Accrued Interest Account plus the amount, if any,
to be drawn under the Series 2003-5 Letters of Credit and /or withdrawn from
the Series 2003-5 Cash Collateral Account pursuant to Section 2.3(c) are
insufficient to pay the sum of the amounts described in clauses (x), (y) and
(z) of Section 2.3(a) above on such Distribution Date, the Administrator shall
instruct the Trustee in writing to withdraw from the Series 2003-5 Reserve
Account and deposit in the Series 2003-5 Distribution Account on such
Distribution Date an amount equal to the lesser of the Series 2003-5 Available
Reserve Account Amount and such insufficiency. 
During the continuance of a Surety Default, no amounts in respect of the
Surety Provider Fee shall be withdrawn from the Series 2003-5 Reserve Account.  The Trustee shall withdraw such amount from
the Series 2003-5 Reserve Account and deposit such amount in the Series 2003-5
Distribution Account.

 

(e)           Surety Bond.  If the Administrator determines on any
Distribution Date that the sum of the amounts available from the Series 2003-5
Accrued Interest Account plus the amount, if any, to be drawn under the
Series 2003-5 Letters of Credit and/or to be withdrawn from the Series 2003-5
Cash Collateral Account pursuant to Section 2.3(c) above plus the
amount, if any, to be withdrawn from the Series 2003-5 Reserve Account pursuant
to Section 2.3(d) above is insufficient to pay the Series 2003-5 Adjusted
Monthly Interest for such Distribution Date, the Administrator shall instruct
the Trustee in writing to make a demand on

 

25

 

the Surety Bond and, upon
receipt of such notice by the Trustee on or prior to 11:00 a.m. (New York City
time) on such Distribution Date, the Trustee shall, by 12:00 noon (New York
City time) on such Distribution Date, make a demand on the Surety Bond in an
amount equal to such insufficiency in accordance with the terms thereof and
shall cause the proceeds thereof to be deposited in the Series 2003-5
Distribution Account.

 

(f)            Balance.  On or prior to the second Business Day
preceding each Distribution Date, the Administrator shall instruct the Trustee
and the Paying Agent in writing pursuant to the Administration Agreement to pay
the balance (after making the payments required in Section 2.4), if any, of the
amounts available from the Series 2003-5 Accrued Interest Account and the
Series 2003-5 Distribution Account, plus the amount, if any, drawn under
the Series 2003-5 Letters of Credit and/or withdrawn from the Series 2003-5
Cash Collateral Account pursuant to Section 2.3(c) plus the amount, if
any, withdrawn from the Series 2003-5 Reserve Account pursuant to Section
2.3(d) as follows:

 

(i)            on each
Distribution Date during the Series 2003-5 Revolving Period or a Series 2003-5
Controlled Amortization Period, (1) first, to the Surety Provider, in an amount
equal to (x) the Surety Provider Fee for the related Series 2003-5 Interest
Period and, without duplication, (y) any Surety Provider Reimbursement Amounts
then due and owing, (2) second, to the Administrator, an amount equal to the Series
2003-5 Percentage as of the beginning of such Series 2003-5 Interest Period of
the portion of the Monthly Administration Fee payable by AFC-II (as specified
in clause (iii) of the definition thereof) for such Series 2003-5 Interest
Period, (3) third, to the Trustee, an amount equal to the Series 2003-5
Percentage as of the beginning of such Series 2003-5 Interest Period of the
Trustee’s fees for such Series 2003-5 Interest Period, (4) fourth, to pay any
Carrying Charges (other than Carrying Charges provided for above) to the
Persons to whom such amounts are owed, an amount equal to the Series 2003-5
Percentage as of the beginning of such Series 2003-5 Interest Period of such
Carrying Charges (other than Carrying Charges provided for above) for such Series
2003-5 Interest Period, (5) fifth, if AFC-II is required to replace the Series
2003-5 Interest Rate Cap Counterparty pursuant to Section 2.10(b), the initial
payment, if any, to be made by AFC-II to the replacement Series 2003-5 Interest
Rate Cap Counterparty and (6) sixth, the balance, if any (“Excess
Collections”), shall be withdrawn by the Paying Agent from the Series
2003-5 Collection Account and deposited in the Series 2003-5 Excess Collection
Account; and

 

(ii)           on each
Distribution Date during the Series 2003-5 Rapid Amortization Period, (1)
first, to the Surety Provider, in an amount equal to (x) the Surety Provider
Fee for the related Series 2003-5 Interest Period and, without duplication, (y)
any Surety Provider Reimbursement Amounts then due and owing, (2) second, to
the Trustee, an amount equal to the Series 2003-5 Percentage as of the
beginning of such Series 2003-5 Interest Period of the Trustee’s fees for such
Series 2003-5 Interest Period, (3) third, to the Administrator, an amount equal
to the Series 2003-5 Percentage as of the beginning of such Series 2003-5
Interest Period of the portion of the Monthly Administration Fee (as specified
in clause (iii) of the definition thereof) payable by AFC-II for such Series
2003-5 Interest Period, (4) fourth, to pay any Carrying Charges (other than
Carrying Charges provided for above) to the Persons to whom such amounts are
owed, an amount equal to the Series 2003-5 Percentage as of the beginning of
such Series 2003-5 Interest

 

26

 

Period of such Carrying Charges (other than Carrying Charges provided
for above) for such Series 2003-5 Interest Period, (5) fifth, if AFC-II is
required to replace the Series 2003-5 Interest Rate Cap Counterparty pursuant
to Section 2.10(b), the initial payment, if any, to be made by AFC-II to the
replacement Series 2003-5 Interest Rate Cap Counterparty and (6) sixth, so long
as the Series 2003-5 Invested Amount is greater than the Series 2003-5
Principal Allocations on such Distribution Date, an amount equal to the excess
of the Series 2003-5 Invested Amount over the Series 2003-5 Principal
Allocations on such Distribution Date shall be treated as Principal
Collections.

 

(g)           Shortfalls.  If the amounts described in Section 2.3 are
insufficient to pay the Series 2003-5 Monthly Interest on any Distribution
Date, payments of interest to the Series 2003-5 Noteholders will be reduced on
a pro  rata basis by the amount of such deficiency.  The aggregate amount, if any, of such
deficiency on any Distribution Date shall be referred to as the “Series
2003-5 Shortfall.”  Interest shall
accrue on the portion of the Series 2003-5 Shortfall allocable to the Class A-1
Notes at the Class A-1 Note Rate and on the portion of the Series 2003-5 Shortfall
allocable to the Class A-2 Notes at the Class A-2 Note Rate.

 

(h)           Listing Information Requirement.  From the time of the Administrator’s written
notice to the Trustee that the Class A-2 Notes are listed on the Luxembourg
Stock Exchange until the Administrator shall give the Trustee written notice
that the Class A-2 Notes are not listed on the Luxembourg Stock Exchange, the
Trustee shall, or shall instruct the Paying Agent to, cause the Class A-2 Note
Rate for the next succeeding Series 2003-5 Interest Period, the number of days
in such Series 2003-5 Interest Period, the Distribution Date for such Series
2003-5 Interest Period and the amount of interest payable on the Class A-2
Notes on such Distribution Date to be (A) communicated to DTC, Euroclear, Clearstream,
the Paying Agent in Luxembourg and the Luxembourg Stock Exchange no later than
11:00 a.m. (London time) on the Business Day immediately following each LIBOR
Determination Date and (B) published in the Authorized Newspaper as soon as
possible after its determination.

 

Section 2.4             Payment of Note Interest. 
On each Distribution Date, subject to Sec­tion 9.8 of the Base
Indenture, the Paying Agent shall, in accordance with Section 6.1 of the Base
Indenture, pay to the Series 2003-5 Noteholders from the Series 2003-5
Distribution Account the amount due to the Series 2003-5 Noteholders deposited
in the Series 2003-5 Distribution Account pursuant to Section 2.3.

 

Section 2.5             Payment of Note Principal. 
(a)  Monthly Payments During
Controlled Amortization Period or Rapid Amortization Period.  Commencing on the second Determination Date
during the Class A-1 Controlled Amortization Period or the Class A-2 Controlled
Amortization Period, as the case may be, or the first Determination Date after
the commencement of the Series 2003-5 Rapid Amortization Period, the
Administrator shall instruct the Trustee and the Paying Agent in writing
pursuant to the Administration Agreement and in accordance with this Section
2.5 as to (i) the amount allocated to the Series 2003-5 Notes during the
Related Month pursuant to Section 2.2(b)(ii), (c)(ii) or (d)(ii), as the case
may be, (ii) any amounts to be drawn on the Series 2003-5 Demand Notes and/or
on the Series 2003-5 Letters of Credit (or withdrawn from the Series 2003-5 Cash
Collateral Account), (iii) any amounts to be withdrawn from the Series 2003-5
Reserve Account and deposited into the Series 2003-5 Distribution Account and
(iv) the amount of any demand on the Surety Bond in accordance with

 

27

 

the terms
thereof.  On the Distribution Date
following each such Determination Date, the Trustee shall withdraw the amount
allocated to the Series 2003-5 Notes during the Related Month pursuant to
Section 2.2(b)(ii), (c)(ii) or (d)(ii), as the case may be, from the Series
2003-5 Collection Account and deposit such amount in the Series 2003-5
Distribution Account, to be paid to the holders of the Series 2003-5 Notes.

 

(b)           Principal Draws on Series 2003-5
Letters of Credit.  If the Administrator
determines on any Distribution Date during the Series 2003-5 Rapid Amortization
Period that there exists a Series 2003-5 Lease Principal Payment Deficit, the
Administrator shall instruct the Trustee in writing to draw on the Series
2003-5 Letters of Credit, if any, as provided below; provided, however,
that the Administrator shall not instruct the Trustee to draw on the Series
2003-5 Letters of Credit in respect of a Series 2003-5 Lease Principal Payment
Deficit on or after the date of the filing by any of the Lessees of a petition
for relief under Chapter 11 of the Bankruptcy Code unless and until the date on
which each of the Lessees shall have resumed making all payments of the portion
of Monthly Base Rent relating to Loan Interest required to be made under the
AESOP I Operating Lease.  Upon receipt
of a notice by the Trustee from the Administrator in respect of a Series 2003-5
Lease Principal Payment Deficit on or prior to 11:00 a.m. (New York City time)
on a Distribution Date, the Trustee shall, by 12:00 noon (New York City time)
on such Distribution Date draw an amount as set forth in such notice equal to
the lesser of (i) such Series 2003-5 Lease Principal Payment Deficit and (ii)
the Series 2003-5 Letter of Credit Liquidity Amount on the Series 2003-5
Letters of Credit by presenting to each Series 2003-5 Letter of Credit Provider
a draft accompanied by a Certificate of Lease Deficit Demand and shall cause
the Lease Deficit Disbursements to be deposited in the Series 2003-5
Distribution Account on such Distribution Date; provided, however,
that if the Series 2003-5 Cash Collateral Account has been established and
funded, the Trustee shall withdraw from the Series 2003-5 Cash Collateral
Account and deposit in the Series 2003-5 Distribution Account an amount equal
to the lesser of (x) the Series 2003-5 Cash Collateral Percentage on such
Distribution Date of the Series 2003-5 Lease Principal Payment Deficit and (y)
the Series 2003-5 Available Cash Collateral Account Amount on such Distribution
Date and draw an amount equal to the remainder of such amount on the Series
2003-5 Letters of Credit.

 

(c)           Final Distribution Date.  The entire Class A-1 Invested Amount shall
be due and payable on the Class A-1 Final Distribution Date, and the entire
Class A-2 Invested Amount shall be due and payable on the Class A-2 Final
Distribution Date.  In connection
therewith:

 

(i)            Demand Note Draw.  If the amount to be deposited in the Series
2003-5 Distribution Account in accordance with Section 2.5(a) together with any
amounts to be deposited therein in accordance with Section 2.5(b) allocable to
the Class A-1 Notes on the Class A-1 Final Distribution Date or the Class A-2
Notes on the Class A-2 Final Distribution Date, as the case may be, is less
than the Class A-1 Invested Amount or the Class A-2 Invested Amount, as the
case may be, and there are any Series 2003-5 Letters of Credit on such date,
then, prior to 10:00 a.m. (New York City time) on the second Business Day prior
to such Series 2003-5 Final Distribution Date, the Administrator shall instruct
the Trustee in writing (with a copy to the Surety Provider) to make a demand (a
“Demand Notice”) substantially in the form attached hereto as Exhibit
F on the Demand Note Issuers for payment under the Series 2003-5 Demand
Notes in an amount equal to

 

28

 

the lesser of (i) such insuf­fici­ency and (ii) the Series 2003-5
Letter of Credit Amount.  The Trustee
shall, prior to 12:00 noon (New York City time) on the second Business Day
preceding such Series 2003-5 Final Distribution Date, deliver such Demand
Notice to the Demand Note Issuers; provided, however, that if an
Event of Bankruptcy (or the occurrence of an event described in clause (a) of
the definition thereof, without the lapse of a period of sixty (60) consecutive
days) with respect to a Demand Note Issuer shall have occurred and be
continuing, the Trustee shall not be required to deliver such Demand Notice to
such Demand Note Issuer.  The Trustee
shall cause the proceeds of any demand on the Series 2003-5 Demand Notes to be
deposited into the Series 2003-5 Distribution Account.

 

(ii)           Letter of Credit
Draw.  In the event that either (x)
on or prior to 10:00 a.m. (New York City time) on the Business Day immediately
preceding any Distribution Date next succeeding any date on which a Demand
Notice has been transmitted by the Trustee to the Demand Note Issuers pursuant
to clause (i) of this Section 2.5(c), any Demand Note Issuer shall have
failed to pay to the Trustee or deposit into the Series 2003-5 Distribution
Account the amount specified in such Demand Notice in whole or in part or (y)
due to the occurrence of an Event of Bankruptcy (or the occurrence of an event
described in clause (a) of the defini­tion thereof, without the lapse of a
period of sixty (60) consecutive days) with respect to one or more of the
Demand Note Issuers, the Trustee shall not have delivered such Demand Notice to
any Demand Note Issuer on the second Business Day preceding such Series 2003-5
Final Distribution Date, then, in the case of (x) or (y) the Trustee shall draw
on the Series 2003-5 Letters of Credit by 12:00 noon (New York City time) on
such Business Day an amount equal to the lesser of (a) the amount that the
Demand Note Issuers failed to pay under the Series 2003-5 Demand Notes (or, the
amount that the Trustee failed to demand for payment thereunder) and
(b) the Series 2003-5 Letter of Credit Amount on such Business Day by
presenting to each Series 2003-5 Letter of Credit Provider (with a copy to the
Surety Provider) a draft accompanied by a Certificate of Unpaid Demand Note
Demand; provided, however,  that if the Series 2003-5 Cash Collateral
Account has been established and funded, the Trustee shall withdraw from the
Series 2003-5 Cash Collateral Account and deposit in the Series 2003-5
Distribution Account an amount equal to the lesser of (x) the Series 2003-5
Cash Collateral Percentage on such Business Day of the amount that the Demand
Note Issuers failed to pay under the Series 2003-5 Demand Notes (or, the amount
that the Trustee failed to demand for payment thereunder) and (y) the Series
2003-5 Available Cash Collateral Account Amount on such Business Day and draw
an amount equal to the remainder of the amount that the Demand Note Issuers
failed to pay under the Series 2003-5 Demand Notes (or, the amount that the
Trustee failed to demand for payment thereunder) on the Series 2003-5 Letters
of Credit.  The Trustee shall deposit,
or cause the deposit of, the proceeds of any draw on the Series 2003-5 Letters
of Credit and the proceeds of any withdrawal from the Series 2003-5 Cash
Collateral Account to be deposited in the Series 2003-5 Distribution Account.

 

(iii)          Reserve Account
Withdrawal.  If, after giving effect
to the deposit into the Series 2003-5 Distribution Account of the amount to be
deposited in accordance with Section 2.5(a) and the amounts described in
clauses (i) and (ii) of this Section 2.5(c), the amount to be deposited in the
Series 2003-5 Distribution Account with respect to a Series

 

29

 

2003-5 Final Distribution Date is or will be less than the Class A-1
Invested Amount or the Class A-2 Invested Amount, as the case may be, then,
prior to 12:00 noon (New York City time) on the second Business Day prior to
such Series 2003-5 Final Distribution Date, the Administrator shall instruct
the Trustee in writing to withdraw from the Series 2003-5 Reserve Account, an
amount equal to the lesser of the Series 2003-5 Available Reserve Account
Amount and such remaining insufficiency and deposit it in the Series 2003-5
Distribution Account on such Series 2003-5 Final Distribution Date.

 

(iv)          Demand on Surety
Bond.  If after giving effect to the
deposit into the Series 2003-5 Distribution Account of the amount to be
deposited in accordance with Section 2.5(a) and all other amounts described in
clauses (i), (ii) and (iii) of this Section 2.5(c), the amount to be deposited
in the Series 2003-5 Distribution Account with respect to such Series 2003-5
Final Distribution Date is or will be less than the Class A-1 Outstanding
Principal Amount or the Class A-2 Outstanding Principal Amount, as the case may
be, then the Trustee shall make a demand on the Surety Bond by 12:00 p.m. (New
York City time) on the second Business Day preceding such Distribution Date in
an amount equal to such insufficiency in accordance with the terms thereof and
shall cause the proceeds thereof to be deposited in the Series 2003-5
Distribution Account.

 

(d)           Principal Deficit Amount.  On each Distribution Date, other than the
Class A-1 Final Distribution Date and the Class A-2 Final Distribution Date, on
which the Principal Deficit Amount is greater than zero, amounts shall be
transferred to the Series 2003-5 Distribution Account as follows:

 

(i)            Demand Note Draw.  If on any Determination Date, the
Administrator determines that the Principal Deficit Amount with respect to the
next succeeding Distribution Date will be greater than zero and there are any
Series 2003-5 Letters of Credit on such date, prior to 10:00 a.m. (New York
City time) on the second Business Day prior to such Distribution Date, the
Administrator shall instruct the Trustee in writing (with a copy to the Surety
Provider) to deliver a Demand Notice to the Demand Note Issuers demanding
payment of an amount equal to the lesser of (A) the Principal Deficit Amount
and (B) the Series 2003-5 Letter of Credit Amount.  The Trustee shall, prior to 12:00 noon (New York City time) on
the second Business Day preceding such Distribution Date, deliver such Demand
Notice to the Demand Note Issuers; provided, however, that if an
Event of Bankruptcy (or the occurrence of an event described in clause (a) of
the definition thereof, without the lapse of a period of sixty (60) consecutive
days) with respect to a Demand Note Issuer shall have occurred and be
continuing, the Trustee shall not be required to deliver such Demand Notice to
such Demand Note Issuer.  The Trustee
shall cause the proceeds of any demand on the Series 2003-5 Demand Note to be
deposited into the Series 2003-5 Distribution Account.

 

(ii)           Letter of Credit
Draw.  In the event that either (x)
on or prior to 10:00 a.m. (New York City time) on the Business Day prior to
such Distribution Date, any Demand Note Issuer shall have failed to pay to the
Trustee or deposit into the Series 2003-5 Distribution Account the amount
specified in such Demand Notice in whole or in part or (y) due to the
occurrence of an Event of Bankruptcy (or the occurrence of an event described
in clause (a) of the definition thereof, without the lapse of a period of sixty
(60)

 

30

 

consecutive days) with respect to any Demand Note Issuer, the Trustee
shall not have delivered such Demand Notice to any Demand Note Issuer on the
second Business Day preceding such Distribution Date, then, in the case of (x)
or (y) the Trustee shall on such Business Day draw on the Series 2003-5 Letters
of Credit an amount equal to the lesser of (i) Series 2003-5 Letter of Credit
Amount and (ii) the aggregate amount that the Demand Note Issuers failed
to pay under the Series 2003-5 Demand Notes (or, the amount that the Trustee
failed to demand for payment thereunder) by presenting to each Series 2003-5
Letter of Credit Provider (with a copy to the Surety Provider) a draft
accompanied by a Certificate of Unpaid Demand Note Demand; provided, however,
that if the Series 2003-5 Cash Collateral Account has been established and
funded, the Trustee shall withdraw from the Series 2003-5 Cash Collateral
Account and deposit in the Series 2003-5 Distribution Account an amount equal
to the lesser of (x) the Series 2003-5 Cash Collateral Percentage on such
Business Day of the aggregate amount that the Demand Note Issuers failed to pay
under the Series 2003-5 Demand Notes (or, the amount that the Trustee failed to
demand for payment thereunder) and (y) the Series 2003-5 Available Cash
Collateral Account Amount on such Business Day and draw an amount equal to the
remainder of the aggregate amount that the Demand Note Issuers failed to pay
under the Series 2003-5 Demand Notes (or, the amount that the Trustee failed to
demand for payment thereunder) on the Series 2003-5 Letters of Credit.  The Trustee shall deposit into, or cause the
deposit of, the proceeds of any draw on the Series 2003-5 Letters of Credit and
the proceeds of any withdrawal from the Series 2003-5 Cash Collateral Account
to be deposited in the Series 2003-5 Distribution Account.

 

(iii)          Reserve Account
Withdrawal.  If the Series 2003-5 Letter
of Credit Amount will be less than the Principal Deficit Amount on any
Distribution Date, then, prior to 12:00 noon (New York City time) on the second
Business Day prior to such Distribution Date, the Administrator shall instruct
the Trustee in writing to withdraw from the Series 2003-5 Reserve Account, an
amount equal to the lesser of (x) the Series 2003-5 Available Reserve Account
Amount and (y) the amount by which the Principal Deficit Amount exceeds the
amounts to be deposited in the Series 2003-5 Distribution Account in accordance
with clauses (i) and (ii) of this Section 2.5(d) and deposit it in the Series
2003-5 Distribution Account on such Distribution Date.

 

(iv)          Demand on Surety
Bond.  If the sum of the Series
2003-5 Letter of Credit Amount and the Series 2003-5 Available Reserve Account
Amount will be less than the Principal Deficit Amount on any Distribution Date,
then the Trustee shall make a demand on the Surety Bond by 12:00 noon (New York
City time) on the second Business Day preceding such Distribution Date in an
amount equal to the Insured Principal Deficit Amount and shall cause the
proceeds thereof to be deposited in the Series 2003-5 Distribution Account.

 

(e)           Distribution.  On each Distribution Date occurring on or
after the date a withdrawal is made from the Series 2003-5 Collection Account
pursuant to Section 2.5(a) or amounts are deposited in the Series 2003-5
Distribution Account pursuant to Section 2.5(b), (c) or (d) the Paying Agent
shall, in accordance with Section 6.1 of the Base Indenture, pay pro  rata
to each Class A-1 Noteholder or Class A-2 Noteholder, as applicable, from the
Series 2003-5 Distribution Account the amount deposited therein pursuant to
Section 2.5(a), (b), (c) or (d), to

 

31

 

the extent necessary to
pay the Class A-1 Controlled Amortization Amount during the Class A-1
Controlled Amortization Period or the Class A-2 Controlled Amortization Amount
during the Class A-2 Controlled Amortization Period, as the case may be, or to
the extent necessary to pay the Class A-1 Invested Amount and the Class A-2
Invested Amount during the Series 2003-5 Rapid Amortization Period.

 

Section 2.6             Administrator’s Failure to
Instruct the Trustee to Make a Deposit or Payment. 
If the Administrator fails to give notice or instructions to make any
payment from or deposit into the Collection Account required to be given by the
Adminis­trator, at the time speci­fied in the Administration Agreement or any
other Related Document (including appli­cable grace periods), the Trustee shall
make such payment or deposit into or from the Collection Account without such
notice or instruction from the Administrator, provided that the Adminis­tra­tor,
upon request of the Trustee, promptly provides the Trustee with all information
necessary to allow the Trustee to make such a payment or deposit.  When any payment or deposit hereunder or
under any other Related Document is required to be made by the Trustee or the
Paying Agent at or prior to a specified time, the Administrator shall deliver
any applicable written instructions with respect thereto reasonably in advance
of such specified time.

 

Section 2.7             Series-2003-5 Reserve Account. 
(a)  Establishment of Series
2003-5 Reserve Account.  AFC-II
shall establish and maintain in the name of the Series 2003-5 Agent for the
benefit of the Series 2003-5 Noteholders and the Surety Provider, or cause to
be established and maintained, an account (the “Series 2003-5 Reserve
Account”), bearing a designation clearly indicating that the funds
deposited therein are held for the benefit of the Series 2003-5 Noteholders and
the Surety Provider.  The Series 2003-5
Reserve Account shall be maintained (i) with a Qualified Institution, or (ii)
as a segregated trust account with the corporate trust depart­ment of a
depository institution or trust company having corporate trust powers and
acting as trustee for funds deposited in the Series 2003-5 Reserve Account; provided
that, if at any time such Qualified Institution is no longer a Qualified
Institution or the credit rating of any securities issued by such depositary
institution or trust company shall be reduced to below “BBB-” by Standard &
Poor’s or “Baa2” by Moody’s, then AFC-II shall, within thirty (30) days of such
reduction, establish a new Series 2003-5 Reserve Account with a new Qualified
Institution.  If the Series 2003-5
Reserve Account is not maintained in accordance with the previous sentence,
AFC-II shall establish a new Series 2003-5 Reserve Account, within ten (10) Business
Days after obtaining knowledge of such fact, which complies with such sentence,
and shall instruct the Series 2003-5 Agent in writing to transfer all cash and
investments from the non-qualifying Series 2003-5 Reserve Account into the new
Series 2003-5 Reserve Account. 
Initially, the Series 2003-5 Reserve Account will be established with
The Bank of New York.

 

(b)           Administration of the Series
2003-5 Reserve Account.  The
Administrator may instruct the institution maintaining the Series 2003-5 Reserve
Account to invest funds on deposit in the Series 2003-5 Reserve Account from
time to time in Permitted Investments; provided, however, that
any such investment shall mature not later than the Business Day prior to the
Distribution Date following the date on which such funds were received, unless
any Permitted Investment held in the Series 2003-5 Reserve Account is held with
the Paying Agent, then such investment may mature on such Distribution Date and
such funds shall be available for withdrawal on or prior to such Distribution
Date.  All such Permitted Investments
will be credited to the Series 2003-5 Reserve Account and any such Permitted
Investments that constitute

 

32

 

(i) physical property (and that is not either a United States
security entitlement or a security entitlement) shall be physically delivered
to the Trustee; (ii) United States security entitlements or security
entitlements shall be controlled (as defined in Section 8-106 of the New York
UCC) by the Trustee pending maturity or disposition, and
(iii) uncertificated securities (and not United States security
entitlements) shall be delivered to the Trustee by causing the Trustee to
become the registered holder of such securities.  The Trustee shall, at the direction and expense of AFC-II, take
such action as is required to maintain the Trustee’s security interest in the
Permitted Investments credited to the Series 2003-5 Reserve Account.  AFC-II shall not direct the Trustee to
dispose of (or permit the disposal of) any Permitted Investments prior to the
maturity thereof to the extent such disposal would result in a loss of the
purchase price of such Permitted Investments. 
In the absence of written investment instructions hereunder, funds on
deposit in the Series 2003-5 Reserve Account shall remain uninvested.

 

(c)           Earnings from Series 2003-5
Reserve Ac­count.  All interest and
earnings (net of losses and investment expenses) paid on funds on deposit in
the Series 2003-5 Reserve Account shall be deemed to be on deposit therein and
available for distribution.

 

(d)           Series 2003-5 Reserve Account
Constitutes Additional Collateral for Series 2003-5 Notes.  In order to secure and provide for the
repayment and payment of the AFC-II Obligations with respect to the Series
2003-5 Notes, AFC-II hereby grants a security interest in and assigns, pledges,
grants, transfers and sets over to the Series 2003-5 Agent, for the benefit of
the Series 2003-5 Noteholders and the Surety Provider, all of AFC-II’s right,
title and interest in and to the following (whether now or hereafter existing
or acquired):  (i) the Series 2003-5
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 2003-5 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 2003-5 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
2003-5 Reserve Account, the funds on deposit therein from time to time or the
investments made with such funds; and (vi) all proceeds of any and all of the
foregoing, including, without limitation, cash (the items in the foregoing
clauses (i) through (vi) are referred to, collectively, as the “Series
2003-5 Reserve Account Collateral”). 
The Series 2003-5 Agent shall possess all right, title and interest in
and to all funds on deposit from time to time in the Series 2003-5 Reserve
Account and in all proceeds thereof, and shall be the only person authorized to
originate entitlement orders in respect of the Series 2003-5 Reserve
Account.  The Series 2003-5 Reserve
Account Collateral shall be under the sole dominion and control of the Series
2003-5 Agent for the benefit of the Series 2003-5 Noteholders and the Surety
Provider.  The Series 2003-5 Agent
hereby agrees (i) to act as the securities intermediary (as defined in Section
8-102(a)(14) of the New York UCC) with respect to the Series 2003-5
Reserve Account; (ii) that each item of property (whether investment property,
financial asset, security, instrument or cash) credited to the Series 2003-5
Reserve Account shall be treated as a financial asset (as defined in Section 8-102(a)(9)
of the New York UCC) and (iii) to comply with any entitlement order (as
defined in Section 8-102(a)(8) of the New York UCC) issued by the Trustee.

 

33

 

(e)           Series 2003-5 Reserve Account
Surplus.  In the event that the
Series 2003-5 Reserve Account Surplus on any Distribution Date, after giving
effect to all withdrawals from the Series 2003-5 Reserve Account, is greater
than zero, if no Series 2003-5 Enhancement Deficiency or AESOP I Operating Lease
Vehicle Deficiency would result therefrom or exist thereafter, the Trustee,
acting in accordance with the written instructions of the Administrator (with a
copy of such written instructions to be provided by the Administrator to the
Surety Provider) pursuant to the Administration Agreement, shall withdraw from
the Series 2003-5 Reserve Account an amount equal to the Series 2003-5 Reserve
Account Surplus and shall pay such amount to AFC-II.

 

(f)            Termination of Series 2003-5
Reserve Ac­count.  Upon the termination
of the Indenture pursuant to Section 11.1 of the Base Indenture, the Trustee,
acting in accordance with the written instructions of the Administrator, after
the prior payment of all amounts owing to the Series 2003-5 Noteholders and to
the Surety Provider and payable from the Series 2003-5 Reserve Account as
provided herein, shall withdraw from the Series 2003-5 Reserve Account all
amounts on deposit therein for payment to AFC-II.

 

Section 2.8             Series 2003-5 Letters of Credit
and Series 2003-5 Cash Collateral Account.  (a)        Series 2003-5 Letters of Credit and
Series 2003-5 Cash Collateral Account Constitute Additional Collateral for
Series 2003-5 Notes.  In order to
secure and provide for the repayment and payment of the AFC-II Obligations with
respect to the Series 2003-5 Notes, AFC-II hereby grants a security interest in
and assigns, pledges, grants, transfers and sets over to the Trustee, for the
benefit of the Series 2003-5 Noteholders and the Surety Provider, all of
AFC-II’s right, title and interest in and to the following (whether now or
hereafter existing or acquired): (i) each Series 2003-5 Letter of Credit;
(ii) the Series 2003-5 Cash Collateral Account, including any security
entitlement thereto; (iii) all funds on deposit in the Series 2003-5 Cash
Collateral Account from time to time; (iv) all certificates and
instruments, if any, representing or evidencing any or all of the Series 2003-5
Cash Collateral Account or the funds on deposit therein from time to time;
(v) all investments made at any time and from time to time with monies in
the Series 2003-5 Cash Collateral Account, whether constituting securities,
instruments, general intangibles, investment property, financial assets or
other property; (vi) all interest, dividends, cash, instruments and other
property from time to time received, receivable or otherwise distributed in
respect of or in exchange for the Series 2003-5 Cash Collateral Account, the
funds on deposit therein from time to time or the investments made with such
funds; and (vii) all proceeds of any and all of the foregoing, including,
without limitation, cash (the items in the foregoing clauses (ii) through
(vii) are referred to, collectively, as the “Series 2003-5 Cash
Collateral Account Collateral”). 
The Trustee shall, for the benefit of the Series 2003-5 Noteholders and
the Surety Provider, possess all right, title and interest in all funds on
deposit from time to time in the Series 2003-5 Cash Collateral Account and in
all proceeds thereof, and shall be the only person authorized to originate
entitlement orders in respect of the Series 2003-5 Cash Collateral
Account.  The Series 2003-5 Cash
Collateral Account shall be under the sole dominion and control of the Trustee
for the benefit of the Series 2003-5 Noteholders and the Surety Provider.  The Series 2003-5 Agent hereby agrees (i) to
act as the securities intermediary (as defined in Section 8-102(a)(14) of the
New York UCC) with respect to the Series 2003-5 Cash Collateral Account;
(ii) that each item of property (whether investment property, financial asset,
security, instrument or cash) credited to the Series 2003-5 Cash Collateral
Account shall be treated as a financial asset (as defined in Section
8-102(a)(9) of the

 

34

 

New York UCC) and (iii) to comply with any entitlement order (as
defined in Section 8-102(a)(8) of the New York UCC) issued by the Trustee.

 

(b)           Series 2003-5 Letter of Credit
Expiration Date.  If prior to the
date which is ten (10) days prior to the then scheduled Series 2003-5 Letter of
Credit Expiration Date with respect to any Series 2003-5 Letter of Credit,
excluding the amount available to be drawn under such Series 2003-5 Letter of
Credit but taking into account each substitute Series 2003-5 Letter of Credit
which has been obtained from a Series 2003-5 Eligible Letter of Credit Provider
and is in full force and effect on such date, the Series 2003-5 Enhancement
Amount would be equal to or more than the Series 2003-5 Required Enhancement
Amount and the Series 2003-5 Liquidity Amount would be equal to or greater than
the Series 2003-5 Required Liquidity Amount, then the Administrator shall
notify the Trustee and the Surety Provider (with the Surety Provider to be
provided supporting calculations in reasonable detail) in writing no later than
two Business Days prior to such Series 2003-5 Letter of Credit Expiration Date
of such determination.  If prior to the
date which is ten (10) days prior to the then scheduled Series 2003-5 Letter of
Credit Expiration Date with respect to any Series 2003-5 Letter of Credit,
excluding the amount available to be drawn under such Series 2003-5 Letter of
Credit but taking into account a substitute Series 2003-5 Letter of Credit
which has been obtained from a Series 2003-5 Eligible Letter of Credit Provider
and is in full force and effect on such date, the Series 2003-5 Enhancement
Amount would be less than the Series 2003-5 Required Enhancement Amount or the
Series 2003-5 Liquidity Amount would be less than the Series 2003-5 Required
Liquidity Amount, then the Administrator shall notify the Trustee and the
Surety Provider (with the Surety Provider to be provided supporting
calculations in reasonable detail) in writing no later than two Business Days
prior to such Series 2003-5 Letter of Credit Expiration Date of (x) the greater
of (A) the excess, if any, of the Series 2003-5 Required Enhancement Amount
over the Series 2003-5 Enhancement Amount, excluding the available amount under
such expiring Series 2003-5 Letter of Credit but taking into account any
substitute Series 2003-5 Letter of Credit which has been obtained from a Series
2003-5 Eligible Letter of Credit Provider and is in full force and effect, on
such date, and (B) the excess, if any, of the Series 2003-5 Required Liquidity
Amount over the Series 2003-5 Liquidity Amount, excluding the available amount
under such expiring Series 2003-5 Letter of Credit but taking into account any
substitute Series 2003-5 Letter of Credit which has been obtained from a Series
2003-5 Eligible Letter of Credit Provider and is in full force and effect, on
such date, and (y) the amount available to be drawn on such expiring Series
2003-5 Letter of Credit on such date. 
Upon receipt of such notice by the Trustee on or prior to 10:00 a.m.
(New York City time) on any Business Day, the Trustee shall, by 12:00 p.m. (New
York City time) on such Business Day (or, in the case of any notice given to
the Trustee after 10:00 a.m. (New York City time), by 12:00 p.m. (New York City
time) on the next following Business Day), draw the lesser of the amounts set
forth in clauses (x) and (y) above on such expiring Series 2003-5 Letter of
Credit by presenting a draft (with a copy to the Surety Provider) accompanied
by a Certificate of Termination Demand and shall cause the Termination
Disbursement to be deposited in the Series 2003-5 Cash Collateral Account.

 

If the Trustee does not
receive the notice from the Administrator described in the first paragraph of
this Section 2.8(b) on or prior to the date that is two Business Days prior to
each Series 2003-5 Letter of Credit Expiration Date, the Trustee shall, by
12:00 p.m. (New York City time) on such Business Day draw the full amount of
such Series 2003-5 Letter of Credit by

 

35

 

presenting a draft accompanied by a Certificate of Termination Demand
and shall cause the Termination Disbursement to be deposited in the Series
2003-5 Cash Collateral Account.

 

(c)           Series 2003-5 Letter of Credit
Providers.  The Administrator shall
notify the Trustee and the Surety Provider in writing within one Business Day
of becoming aware that (i) the long-term senior unsecured debt credit rating of
any Series 2003-5 Letter of Credit Provider has fallen below “A+” as determined
by Standard & Poor’s or “Al” as determined by Moody’s or (ii) the
short-term senior unsecured debt credit rating of any Series 2003-5 Letter of
Credit Provider has fallen below “A-1” as determined by Standard & Poor’s
or “P-1” as determined by Moody’s.  At
such time the Administrator shall also notify the Trustee of (i) the
greater of (A) the excess, if any, of the Series 2003-5 Required Enhancement
Amount over the Series 2003-5 Enhancement Amount, excluding the available
amount under the Series 2003-5 Letter of Credit issued by such Series 2003-5
Letter of Credit Provider, on such date, and (B) the excess, if any, of the
Series 2003-5 Required Liquidity Amount over the Series 2003-5 Liquidity
Amount, excluding the available amount under such Series 2003-5 Letter of Credit,
on such date, and (ii) the amount available to be drawn on such Series
2003-5 Letter of Credit on such date. 
Upon receipt of such notice by the Trustee on or prior to 10:00 a.m.
(New York City time) on any Business Day, the Trustee shall, by 12:00 p.m. (New
York City time) on such Business Day (or, in the case of any notice given to
the Trustee after 10:00 a.m. (New York City time), by 12:00 p.m. (New York City
time) on the next following Business Day), draw on such Series 2003-5 Letter of
Credit in an amount equal to the lesser of the amounts in clause (i) and
clause (ii) of the immediately preceding sentence on such Business Day by
presenting a draft accompanied by a Certificate of Termination Demand and shall
cause the Termination Disbursement to be deposited in the Series 2003-5 Cash
Collateral Account.

 

(d)           Termination Date Demands on the
Series 2003-5 Letters of Credit. 
Prior to 10:00 a.m. (New York City time) on the Business Day immediately
succeeding the Series 2003-5 Letter of Credit Termination Date, the
Administrator shall determine the Series 2003-5 Demand Note Payment Amount, if
any, as of the Series 2003-5 Letter of Credit Termination Date and, if the
Series 2003-5 Demand Note Payment Amount is greater than zero, instruct the
Trustee in writing to draw on the Series 2003-5 Letters of Credit.  Upon receipt of any such notice by the
Trustee on or prior to 11:00 a.m. (New York City time) on a Business Day, the
Trustee shall, by 12:00 noon (New York City time) on such Business Day draw an
amount equal to the lesser of (i) the Series 2003-5 Demand Note Payment
Amount and (ii) the Series 2003-5 Letter of Credit Liquidity Amount on the
Series 2003-5 Letters of Credit by presenting to each Series 2003-5 Letter of
Credit Provider (with a copy to the Surety Provider) a draft accompanied by a
Certificate of Termination Date Demand and shall cause the Termination Date
Disbursement to be deposited in the Series 2003-5 Cash Collateral Account; provided,
however, that if the Series 2003-5 Cash Collateral Account has been
established and funded, the Trustee shall draw an amount equal to the product
of (a) 100% minus the Series 2003-5 Cash Collateral Percentage and (b)
the lesser of the amounts referred to in clause (i) and (ii) on such Business
Day on the Series 2003-5 Letters of Credit as calculated by the Administra­tor
and provided in writing to the Trustee and the Surety Provider.

 

(e)           Draws on the Series 2003-5 Letters
of Credit.  If there is more than
one Series 2003-5 Letter of Credit on the date of any draw on the Series 2003-5
Letters of Credit pursuant to the terms of this Supplement, the Administrator
shall instruct the Trustee, in writing,

 

36

 

to draw on each Series 2003-5 Letter of Credit in an amount equal to
the Pro Rata Share of the Series 2003-5 Letter of Credit Provider issuing such
Series 2003-5 Letter of Credit of the amount of such draw on the Series 2003-5
Letters of Credit.

 

(f)            Establishment of Series 2003-5
Cash Collateral Account.  On or
prior to the date of any drawing under a Series 2003-5 Letter of Credit
pursuant to Section 2.8(b), (c) or (d) above, AFC-II shall establish and
maintain in the name of the Trustee for the benefit of the Series 2003-5
Noteholders and the Surety Provider, or cause to be established and maintained,
an account (the “Series 2003-5 Cash Collateral Account”), bearing a
designation clearly indicating that the funds deposited therein are held for
the benefit of the Series 2003-5 Noteholders and the Surety Provider.  The Series 2003-5 Cash Collateral Account
shall be maintained (i) with a Qualified Institution, or (ii) as a
segregated trust account with the corporate trust department of a depository
institution or trust company having corporate trust powers and acting as
trustee for funds deposited in the Series 2003-5 Cash Collateral Account; provided,
however, that if at any time such Qualified Institution is no longer a
Qualified Institution or the credit rating of any securities issued by such
depository institution or trust company shall be reduced to below “BBB-” by
Standard & Poor’s or “Baa3” by Moody’s, then AFC-II shall, within thirty
(30) days of such reduction, establish a new Series 2003-5 Cash Collateral
Account with a new Qualified Institution or a new segre­gated trust account
with the corporate trust department of a depository institution or trust
company having corporate trust powers and acting as trustee for funds deposited
in the Series 2003-5 Cash Collateral Account. 
If a new Series 2003-5 Cash Collateral Account is established, AFC-II
shall instruct the Trustee in writing to transfer all cash and investments from
the non-qualifying Series 2003-5 Cash Collateral Account into the new Series
2003-5 Cash Collateral Account.

 

(g)           Administration of the Series
2003-5 Cash Collateral Account. 
AFC-II may instruct (by standing instructions or otherwise) the
institution maintaining the Series 2003-5 Cash Collateral Account to invest
funds on deposit in the Series 2003-5 Cash Collateral Account from time to time
in Permitted Investments; provided, however, that any such
investment shall mature not later than the Business Day prior to the
Distribution Date following the date on which such funds were received, unless
any Permitted Investment held in the Series 2003-5 Cash Collateral Account is
held with the Paying Agent, in which case such investment may mature on such
Distribution Date so long as such funds shall be available for withdrawal on or
prior to such Distribution Date.  All
such Permitted Investments will be credited to the Series 2003-5 Cash
Collateral Account and any such Permitted Investments that constitute
(i) physical property (and that is not either a United States security
entitlement or a security entitlement) shall be physically delivered to the
Trustee; (ii) United States security entitlements or security entitlements
shall be controlled (as defined in Section 8-106 of the New York UCC) by the
Trustee pending maturity or disposition, and (iii) uncertificated
securities (and not United States security entitlements) shall be delivered to
the Trustee by causing the Trustee to become the registered holder of such
securities.  The Trustee shall, at the
expense of AFC-II, take such action as is required to maintain the Trustee’s
security interest in the Permitted Investments credited to the Series 2003-5
Cash Collateral Account.  AFC-II shall
not direct the Trustee to dispose of (or permit the disposal of) any Permitted
Investments prior to the maturity thereof to the extent such disposal would
result in a loss of the purchase price of such Permitted Investments.  In the absence of written investment
instructions hereunder, funds on deposit in the Series 2003-5 Cash Collateral
Account shall remain uninvested.

 

37

 

(h)           Earnings from Series 2003-5 Cash
Collateral Account.  All interest
and earnings (net of losses and investment expenses) paid on funds on deposit
in the Series 2003-5 Cash Collateral Account shall be deemed to be on deposit
therein and available for distribution.

 

(i)            Series 2003-5 Cash Collateral
Account Surplus.  In the event that
the Series 2003-5 Cash Collateral Account Surplus on any Distribution Date (or,
after the Series 2003-5 Letter of Credit Termination Date, on any date) is
greater than zero, the Trustee, acting in accordance with the written
instructions (a copy of which shall be provided by the Administrator to the
Surety Provider) of the Administrator, shall with­draw from the Series 2003-5
Cash Collateral Account an amount equal to the Series 2003-5 Cash Collateral
Account Surplus and shall pay such amount: 
first, to the Series 2003-5 Letter of Credit Providers to the
extent of any unreimbursed drawings under the related Series 2003-5
Reimbursement Agreement, for application in accordance with the provisions of
the related Series 2003-5 Reimbursement Agreement, and, second, to
AFC-II any remaining amount.

 

(j)            Post-Series 2003-5 Letter of
Credit Termination Date Withdrawals from the Series 2003-5 Cash Collateral
Account.  If the Surety Provider
notifies the Trustee in writing that the Surety Provider shall have paid a
Preference Amount (as defined in the Surety Bond) under the Surety Bond,
subject to the satisfaction of the conditions set forth in the next succeeding
sentence, the Trustee shall withdraw from the Series 2003-5 Cash Collateral
Account and pay to the Surety Provider an amount equal to the lesser of
(i) the Series 2003-5 Available Cash Collateral Account Amount on such
date and (ii) such Preference Amount. 
Prior to any withdrawal from the Series 2003-5 Cash Collateral Account
pursuant to this Section 2.8(j), the Trustee shall have received a
certified copy of the order requiring the return of such Preference Amount.

 

(k)           Termination of Series 2003-5 Cash
Collateral Account.  Upon the
termina­tion of this Supplement in accordance with its terms, the Trustee,
acting in accordance with the written instructions of the Administrator, after
the prior payment of all amounts owing to the Series 2003-5 Noteholders and to
the Surety Provider and payable from the Series 2003-5 Cash Collateral Account
as provided herein, shall withdraw from the Series 2003-5 Cash Collateral
Account all amounts on deposit therein (to the extent not withdrawn pursuant to
Section 2.8(i) above) and shall pay such amounts:  first, to the Series 2003-5 Letter of
Credit Providers to the extent of any unreimbursed drawings under the related
Series 2003-5 Reimbursement Agreement, for application in accordance with the
provisions of the related Series 2003-5 Reimbursement Agreement, and, second,
to AFC-II any remaining amount.

 

Section 2.9             Series 2003-5 Distribution
Account  (a)  Establishment
of Series 2003-5 Distribution Account. 
The Trustee shall establish and maintain in the name of the Series
2003-5 Agent for the benefit of the Series 2003-5 Noteholders and the Surety
Provider, or cause to be established and maintained, an account (the “Series
2003-5 Distribution Account”), bearing a designation clearly indicating
that the funds deposited therein are held for the benefit of the Series 2003-5
Noteholders and the Surety Provider. 
The Series 2003-5 Distribution Account shall be maintained (i) with a
Qualified Institution, or (ii) as a segregated trust account with the corporate
trust department of a depository institution or trust company having corporate
trust powers and acting as trustee for funds deposited in the Series 2003-5
Distribution Account; provided, however, that if at any time such
Qualified Institution is no longer a Qualified

 

38

 

Institution or the credit rating of any securities issued by such
depositary institution or trust company shall be reduced to below  “BBB-” by Standard & Poor’s or “Baa3” by
Moody’s, then AFC-II shall, within thirty (30) days of such reduction,
establish a new Series 2003-5 Distribution Account with a new Qualified
Institution.  If the Series 2003-5
Distribution Account is not maintained in accordance with the previous
sentence, AFC-II shall establish a new Series 2003-5 Distribution Account,
within ten (10) Business Days after obtaining knowledge of such fact, which
complies with such sentence, and shall instruct the Series 2003-5 Agent in
writing to transfer all cash and investments from the non-qualifying Series 2003-5
Distribution Account into the new Series 2003-5 Distribution Account.  Initially, the Series 2003-5 Distribution
Account will be established with The Bank of New York.

 

(b)           Administration of the Series
2003-5 Distribution Account.  The
Administrator may instruct the institution maintaining the Series 2003-5
Distribution Account to invest funds on deposit in the Series 2003-5
Distribution Account from time to time in Permitted Investments; provided,
however, that any such investment shall mature not later than the
Business Day prior to the Distribution Date following the date on which such
funds were received, unless any Permitted Investment held in the Series 2003-5
Distribution Account is held with the Paying Agent, then such investment may
mature on such Distribution Date and such funds shall be available for
withdrawal on or prior to such Distribution Date.  All such Permitted Investments will be credited to the Series
2003-5 Distribution Account and any such Permitted Investments that constitute
(i) physical property (and that is not either a United States security
entitle­ment or a security entitlement) shall be physically delivered to the
Trustee; (ii) United States security entitlements or security entitlements
shall be controlled (as defined in Section 8-106 of the New York UCC) by
the Trustee pending maturity or disposition, and (iii) uncertificated
securities (and not United States security entitlements) shall be delivered to
the Trustee by causing the Trustee to become the registered holder of such securities.  The Trustee shall, at the direction and
expense of AFC-II, take such action as is required to maintain the Trustee’s
security interest in the Permitted Investments credited to the Series 2003-5
Distribution Account.  AFC-II shall not
direct the Trustee to dispose of (or permit the disposal of) any Permitted
Investments prior to the maturity thereof to the extent such disposal would
result in a loss of the purchase price of such Permitted Investments.  In the absence of written investment
instructions hereunder, funds on deposit in the Series 2003-5 Distribution
Account shall remain uninvested.

 

(c)           Earnings from Series 2003-5
Distribution Account.  All interest
and earnings (net of losses and investment expenses) paid on funds on deposit
in the Series 2003-5 Distribution Account shall be deemed to be on deposit and
available for distribution.

 

(d)           Series 2003-5 Distribution Account
Constitutes Additional Collateral for Series 2003-5 Notes.  In order to secure and provide for the
repayment and payment of the AFC-II Obligations with respect to the Series
2003-5 Notes, AFC-II hereby grants a security interest in and assigns, pledges,
grants, transfers and sets over to the Series 2003-5 Agent, for the benefit of
the Series 2003-5 Noteholders and the Surety Provider, all of AFC-II’s right,
title and interest in and to the following (whether now or hereafter existing
or acquired):  (i) the Series 2003-5
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 2003-5
Distribution Account or the funds on deposit therein from time to time;

 

39

 

(iv) all investments made at any time and from time to time with monies
in the Series 2003-5 Distribution Account, whether constituting securities,
instruments, general intangibles, investment property, financial assets or
other property; (v) all interest, dividends, cash, instruments and other
property from time to time received, receivable or otherwise distributed in
respect of or in exchange for the Series 2003-5 Distribution Account, the funds
on deposit therein from time to time or the investments made with such funds;
and (vi) all proceeds of any and all of the foregoing, including, without
limitation, cash (the items in the foregoing clauses (i) through (vi) are
referred to, collectively, as the “Series 2003-5 Distribution Account
Collateral”).  The Series 2003-5
Agent shall possess all right, title and interest in all funds on deposit from
time to time in the Series 2003-5 Distribution Account and in and to all
proceeds thereof, and shall be the only person authorized to originate
entitlement orders in respect of the Series 2003-5 Distribution Account.  The Series 2003-5 Distribution Account
Collateral shall be under the sole dominion and control of the Series 2003-5
Agent for the benefit of the Series 2003-5 Noteholders and the Surety
Provider.  The Series 2003-5 Agent
hereby agrees (i) to act as the securities intermediary (as defined in Section
8-102(a)(14) of the New York UCC) with respect to the Series 2003-5
Distribution Account; (ii) that each item of property (whether investment
property, financial asset, security, instrument or cash) credited to the Series
2003-5 Distribution Account shall be treated as a financial asset (as defined
in Section 8-102(a)(9) of the New York UCC) and (iii) to comply with any
entitlement order (as defined in Section 8-102(a)(8) of the New York UCC)
issued by the Trustee.

 

Section
2.10           Series 2003-5 Interest Rate Caps.

 

(a)           On the Series 2003-5 Closing Date,
AFC-II shall acquire one or more interest rate caps acceptable to the Surety
Provider (each a “Series 2003-5 Interest Rate Cap”) from a Qualified
Interest Rate Cap Counterparty.  The
aggregate initial notional amount of all Series 2003-5 Interest Rate Caps shall
equal the Class A-2 Initial Invested Amount, and the notional amount of any Series
2003-5 Interest Rate Cap may be reduced pursuant to its terms but at no time
shall the aggregate notional amount of all Series 2003-5 Interest Rate Caps be
less than the Class A-2 Invested Amount. 
The strike rate of each Series 2003-5 Interest Rate Cap shall not be
greater than 4.0%.

 

(b)           If, at any time, a Series 2003-5
Interest Rate Cap Counterparty is not a Qualified Interest Rate Cap
Counterparty, then AFC-II will cause such Series 2003-5 Interest Rate Cap
Counterparty within thirty (30) days following such occurrence, at the Series
2003-5 Interest Rate Cap Counterparty’s expense, to do either of the following
(i) obtain a replacement interest rate cap on substantially the same terms as
the Series 2003-5 Interest Rate Cap being replaced from a Qualified Interest
Rate Cap Counterparty and simultaneously with such replacement, AFC-II shall
terminate the Series 2003-5 Interest Rate Cap being replaced or (ii) enter into
any arrangement satisfactory to Standard & Poor’s, Moody’s and the Surety
Provider, which is sufficient to maintain or restore the immediately prior
Shadow Rating.  Other than as provided
in the last sentence of this Section 2.10(b), no termination of any Series
2003-5 Interest Rate Cap shall occur until AFC-II has entered into a replacement
interest rate cap.  If AFC-II is unable
to cause such Interest Rate Cap Counterparty to obtain such a replacement
interest rate cap after making commercially reasonable efforts or enter into
any other arrangement pursuant to this Section 2.10(b), AFC-II will obtain such
replacement interest rate cap at the expense of the replaced Series 2003-5
Interest Rate Cap Counterparty or, if the replaced Series 2003-5 Interest

 

40

 

Rate Cap Counterparty fails to make such payment, at the expense of AFC-II
(in which event, such amount will be paid solely from Interest Collections
available pursuant to Section 2.3(f)(i) or (ii) hereof).  Each Series 2003-5 Interest Rate Cap must
provide that if such Series 2003-5 Interest Rate Cap Counterparty thereto is
required to obtain a replacement interest rate cap or enter into any other
arrangement pursuant to this Section 2.10(b) and such action is not taken
within thirty (30) days, then such Series 2003- 5 Interest Rate Cap
Counterparty must, until a replacement Series 2003-5 Interest Rate Cap is
executed and in effect, collateralize its obligations under such Series 2003-5
Interest Rate Cap in an amount equal to the greatest of (i) the
marked-to-market value of such Series 2003-5 Interest Rate Cap, (ii) the next
payment due from such Series 2003-5 Interest Rate Cap Counterparty and (iii) 1%
of the notional amount of such Series 2003-5 Interest Rate Cap.  In the event that an “Event of Default”
under a Series 2003-5 Interest Rate Cap has occurred (x) under Section 5(a)(i)
of the ISDA Master Agreement governing such Series 2003-5 Interest Rate Cap in
connection with the failure by the related Series 2003-5 Interest Rate Cap
Counterparty to make payments due under such Series 2003-5 Interest Rate Cap or
(y) under Section 5(a)(vii) of the ISDA Master Agreement governing such Series
2003-5 Interest Rate Cap in connection with certain bankruptcy events with
respect to the related Series 2003-5 Interest Rate Cap Counterparty, then
AFC-II shall, at the request of the Surety Provider, promptly terminate such
Series 2003-5 Interest Rate Cap.

 

(c)           To secure payment of all AFC-II
Obligations with respect to the Series 2003-5 Notes, AFC-II grants a security
interest in, and assigns, pledges, grants, transfers and sets over to the
Series 2003-5 Agent, for the benefit of the Series 2003-5 Noteholders and the
Surety Provider, all of AFC-II’s right, title and interest in the Series 2003-5
Interest Rate Caps and all proceeds thereof (the “Series 2003-5 Interest
Rate Cap Collateral”).  AFC-II shall
require all Series 2003-5 Interest Rate Cap Proceeds to be paid to, and
the Trustee shall allocate all Series 2003-5 Interest Rate Cap Proceeds to, the
Series 2003-5 Accrued Interest Account of the Series 2003-5
Collection Account.

 

(d)           The failure of AFC-II to comply with
its covenants contained in this Section 2.10 shall not constitute an
Amortization Event with respect to the Series 2003-5 Notes.

 

Section 2.11           Series 2003-5 Accounts Permitted
Investments.  AFC-II shall not, and shall not permit,
funds on deposit in the Series 2003-5 Accounts to be invested in:

 

(i)            Permitted
Investments that do not mature at least one Business Day before the next
Distribution Date;

 

(ii)           demand deposits,
time deposits or certificates of deposit with a maturity in excess of 360 days;

 

(iii)          commercial paper
which is not rated “P-1” by Moody’s;

 

(iv)          money market funds
or eurodollar time deposits which are not rated at least “AAA” by Standard
& Poor’s;

 

(v)           eurodollar deposits
that are not rated “P-1” by Moody’s or that are with financial institutions not
organized under the laws of a G-7 nation; or

 

41

 

(vi)          any investment,
instrument or security not otherwise listed in clause (i) through (vi) of the
definition of “Permitted Investments” in the Base Indenture that is not
approved in writing by the Surety Provider.

 

Section 2.12           Series 2003-5 Demand Notes
Constitute Additional Collateral for Series 2003-5 Notes.  In order to secure and provide for the repayment and
payment of the AFC-II Obligations with respect to the Series 2003-5 Notes,
AFC-II hereby grants a security interest in and assigns, pledges, grants,
transfers and sets over to the Trustee, for the benefit of the Series 2003-5
Noteholders and the Surety Provider, all of AFC-II’s right, title and interest
in and to the follow­ing (whether now or hereafter existing or acquired):
(i) the Series 2003-5 Demand Notes; (ii) all certificates and
instruments, if any, representing or evidencing the Series 2003-5 Demand Notes;
and (iii) all proceeds of any and all of the foregoing, including, without
limitation, cash.  On the date hereof,
AFC-II shall deliver to the Trustee, for the benefit of the Series 2003-5
Noteholders and the Surety Provider, each Series 2003-5 Demand Note, endorsed
in blank.  The Trustee, for the benefit
of the Series 2003-5 Noteholders and the Surety Provider, shall be the only
Person authorized to make a demand for payments on the Series 2003-5 Demand Notes.

 

ARTICLE III

 

AMORTIZATION
EVENTS

 

In addition to the
Amortization Events set forth in Section 9.1 of the Base Indenture, any of the
following shall be an Amortization Event with respect to the Series 2003-5
Notes and collectively shall constitute the Amortization Events set forth in
Section 9.1(n) of the Base Indenture with respect to the Series 2003-5 Notes
(without notice or other action on the part of the Trustee or any holders of
the Series 2003-5 Notes):

 

(a)           a
Series 2003-5 Enhancement Deficiency shall occur and continue for at least two
(2) Business Days; provided, however, that such event or
condition shall not be an Amortization Event if during such two (2) Business
Day period such Series 2003-5 Enhancement Deficiency shall have been cured in
accordance with the terms and condi­tions of the Indenture and the Related
Documents;

 

(b)           the
Series 2003-5 Liquidity Amount shall be less than the Series 2003-5 Required
Liquidity Amount for at least two (2) Business Days; provided, however,
that such event or condition shall not be an Amortization Event if during such
two (2) Business Day period such insufficiency shall have been cured in
accordance with the terms and condi­tions of the Indenture and the Related
Documents;

 

(c)           the
Collection Account, the Series 2003-5 Collection Account, the Series 2003-5
Excess Collection Account or the Series 2003-5 Reserve Account shall be subject
to an injunction, estoppel or other stay or a Lien (other than Liens permitted
under the Related Documents);

 

(d)           all
principal of and interest on the Class A-1 Notes is not paid in full on or
before the Class A-1 Expected Final Distribution Date or all principal of and
interest on

 

42

 

the Class A-2 Notes is not paid in full on or before
the Class A-2 Expected Final Distribution Date;

 

(e)           the
Trustee shall make a demand for payment under the Surety Bond;

 

(f)            the
occurrence of an Event of Bankruptcy with respect to the Surety Provider;

 

(g)           the
Surety Provider fails to pay a demand for payment in accordance with the requirements
of the Surety Bond;

 

(h)           any
Series 2003-5 Letter of Credit shall not be in full force and effect for at
least two (2) Business Days and (x) either a Series 2003-5 Enhancement
Deficiency would result from excluding such Series 2003-5 Letter of Credit from
the Series 2003-5 Enhancement Amount or (y) the Series 2003-5 Liquidity Amount,
excluding therefrom the available amount under such Series 2003-5 Letter of
Credit, would be less than the Series 2003-5 Required Liquidity Amount;

 

(i)            from
and after the funding of the Series 2003-5 Cash Collateral Account, the Series
2003-5 Cash Collateral Account shall be subject to an injunction, estoppel or
other stay or a Lien (other than Liens permitted under the Related Documents)
for at least two (2) Business Days and either (x) a Series 2003-5 Enhancement
Deficiency would result from excluding the Series 2003-5 Available Cash
Collateral Account Amount from the Series 2003-5 Enhancement Amount or (y) the
Series 2003-5 Liquidity Amount, excluding therefrom the Series 2003-5 Available
Cash Collateral Amount, would be less than the Series 2003-5 Required Liquidity
Amount; and

 

(j)            an
Event of Bankruptcy shall have occurred with respect to any Series 2003-5
Letter of Credit Provider or any Series 2003-5 Letter of Credit Provider
repudiates its Series 2003-5 Letter of Credit or refuses to honor a proper draw
thereon and either (x) a Series 2003-5 Enhancement Deficiency would result from
excluding such Series 2003-5 Letter of Credit from the Series 2003-5 Enhancement
Amount or (y) the Series 2003-5 Liquidity Amount, excluding therefrom the
available amount under such Series 2003-5 Letter of Credit, would be less than
the Series 2003-5 Required Liquidity Amount.

 

ARTICLE IV

 

RIGHT
TO WAIVE PURCHASE RESTRICTIONS

 

Notwithstanding any
provision to the contrary in the Indenture or the Related Documents, upon the
Trustee’s receipt of notice from any Lessee, any Borrower or AFC-II (i) to the
effect that a Manufacturer Program is no longer an Eligible Manufacturer
Program and that, as a result, the Series 2003-5 Maximum Non-Program Vehicle
Amount is or will be exceeded or (ii) that the Lessees, the Borrowers and
AFC-II have determined to increase any Series 2003-5 Maximum Amount, (such
notice, a “Waiver Request”), each Series 2003-5 Noteholder may, at its
option, waive the Series 2003-5 Maximum Non-Program Vehicle Amount or any other
Series

 

43

 

2003-5 Maximum Amount (collectively, a “Waivable Amount”) if (i)
no Amortization Event exists, (ii) the Requisite Noteholders and the Surety
Provider consent to such waiver and (iii) sixty (60) days’ prior written notice
of such proposed waiver is provided to the Rating Agencies by the Trustee.

 

Upon receipt by the
Trustee of a Waiver Request (a copy of which the Trustee shall promptly provide
to the Rating Agencies), all amounts which would otherwise be allocated to the
Series 2003-5 Excess Collection Account (collectively, the “Designated
Amounts”) from the date the Trustee receives a Waiver Request through the
Consent Period Expiration Date will be held by the Trustee in the Series 2003-5
Collection Account for ratable distribution as described below.

 

Within ten (10) Business
Days after the Trustee receives a Waiver Request, the Trustee shall furnish
notice thereof to the Series 2003-5 Noteholders and the Surety Provider, which
notice shall be accompanied by a form of consent (each a “Consent”) in
the form of Exhibit B hereto by which the Series 2003-5 Noteholders
may, on or before the Consent Period Expiration Date, consent to waiver of the
applicable Waivable Amount.  If the
Trustee receives the consent of the Surety Provider and Consents from the
Requisite Noteholders agreeing to waiver of the applicable Waivable Amount
within forty-five (45) days after the Trustee notifies the Series 2003-5
Noteholders of a Waiver Request (the day on which such forty-five (45) day
period expires, the “Consent Period Expiration Date”), (i) the
applicable Waivable Amount shall be deemed waived by the consenting Series
2003-5 Noteholders, (ii) the Trustee will distribute the Designated Amounts as
set forth below and (iii) the Trustee shall promptly (but in any event
within two days) provide the Rating Agency with notice of such waiver.  Any Series 2003-5 Noteholder from whom the
Trustee has not received a Consent on or before the Consent Period Expiration
Date will be deemed not to have consented to such waiver.

 

If the Trustee receives
Consents from the Requisite Noteholders on or before the Consent Period Expiration
Date, then on the immediately following Distribution Date, the Trustee will pay
the Designated Amounts as follows:

 

(i)            to the
non-consenting Series 2003-5 Noteholders, if any, pro  rata up to
the amount required to pay all Series 2003-5 Notes held by such non-consenting
Series 2003-5 Noteholders in full; and

 

(ii)           any remaining
Designated Amounts to the Series 2003-5 Excess Collection Account.

 

If the amount paid
pursuant to clause (i) of the preceding paragraph is not paid in full on the
date specified therein, then on each day following such Distribution Date, the
Administrator will allocate to the Series 2003-5 Collection Account on a daily
basis all Designated Amounts collected on such day.  On each following Distribution Date, the Trustee will withdraw a
portion of such Designated Amounts from the Series 2003-5 Collection Account
and deposit the same in the Series 2003-5 Distribution Account for distribution
as follows:

 

(a)           to the non-consenting Series 2003-5
Noteholders, if any, pro  rata an amount equal to the Designated
Amounts in the Series 2003-5 Collection Account as of

 

44

 

the applicable
Determination Date up to the aggregate outstanding principal balance of the
Series 2003-5 Notes held by the non-consenting Series 2003-5 Noteholders; and

 

(b)           any remaining Designated Amounts to
the Series 2003-5 Excess Collection Account.

 

If the Requisite
Noteholders or the Surety Provider do not timely consent to such waiver, the
Designated Amounts will be re-allocated to the Series 2003-5 Excess Collection
Account for allocation and distribution in accordance with the terms of the
Indenture and the Related Documents.

 

In the event that the
Series 2003-5 Rapid Amortization Period shall commence after receipt by the
Trustee of a Waiver Request, all such Designated Amounts will thereafter be
considered Principal Collections allocated to the Series 2003-5 Noteholders.

 

ARTICLE V

 

FORM
OF SERIES 2003-5 NOTES

 

Section 5.1             Restricted Global Series 2003-5
Notes.  The Series 2003-5 Notes to be issued in the
United States will be issued in book-entry form and represented by one or more
permanent global Notes in fully registered form without interest coupons (each,
a “Restricted Global Class A-1 Note” or “Restricted Global Class A-2
Note”, as the case may be), substantially in the forms set forth in Exhibit
A-1-1 and A-2-1 hereto, with such legends as may be applicable thereto as
set forth in the Base Indenture, and will be sold only in the United States (1)
initially to institutional accredited investors within the meaning of
Regulation D under the Securities Act in reliance on an exemption from the
registration requirements of the Securities Act and (2) thereafter to qualified
institutional buyers within the meaning of, and in reliance on, Rule 144A under
the Securities Act and shall be deposited on behalf of the purchasers of the
Series 2003-5 Notes represented thereby, with the Trustee as custodian for DTC,
and registered in the name of Cede as DTC’s nominee, duly executed by AFC-II
and authenticated by the Trustee in the manner set forth in Section 2.4 of the
Base Indenture.

 

Section 5.2             Temporary Global Series 2003-5
Notes; Permanent Global Series 2003-5 Notes.  The Series
2003-5 Notes to be issued outside the United States will be issued and sold in
transactions outside the United States in reliance on Regulation S under the
Securities Act, as provided in the applicable note purchase agreement, and
shall initially be issued in the form of one or more temporary notes in
registered form without interest coupons (each, a “Temporary Global Class
A-1 Note” or a “Temporary Global Class A-2 Note”, as the case may
be), substantially in the forms set forth in Exhibits A-1-2 and A-2-2
hereto, which shall be deposited on behalf of the purchasers of the Series
2003-5 Notes represented thereby with a custodian for, and registered in the
name of a nominee of DTC, for the account of Euroclear Bank S.A./N.V., as
operator of the Euroclear System (“Euroclear”) or for Clearstream Banking,
société anonyme (“Clearstream”), duly executed by AFC-II and
authenticated by the Trustee in the manner set forth in Section 2.4 of the Base
Indenture.  Interests in a Temporary
Global Class A-1 Note or a Temporary Global Class A-2 Note will be exchangeable,
in whole or in part, for interests in one or more permanent global notes in
registered form without interest coupons

 

45

 

(each, a “Permanent Global Class A-1 Note” or a “Permanent
Global Class A-2 Note”, as the case may be), substantially in the form of Exhibits
A-1-3 and A-2-3 hereto, in accordance with the provisions of such Temporary
Global Class A-1 Note or Temporary Global Class A-2 Note and the Base Indenture
(as modified by this Supplement).  Interests
in a Permanent Global Class A-1 Note or a Permanent Global Class A-2 Note will
be exchangeable for definitive Class A-1 Notes or definitive Class A-2 Notes,
as the case may be, in accordance with the provisions of such Permanent Global
Class A-1 Note or Permanent Global Class A-2 Note and the Base Indenture (as
modified by this Supplement).

 

ARTICLE VI

 

GENERAL

 

Section 6.1             Optional Repurchase. 
Each Class of the Series 2003-5 Notes shall be subject to repurchase by
AFC-II at its option in accordance with Section 6.3 of the Base Indenture on
any Distribution Date after the Class A-1 Invested Amount or the Class A-2
Invested Amount, as the case may be, is reduced to an amount less than or equal
to 10% of the Class A-1 Initial Invested Amount or the Class A-2 Initial
Invested Amount, as the case may be (the “Series 2003-5 Repurchase Amount”);
provided, however, that as a condition precedent to any such
optional repurchase, on or prior to the Distribution Date on which any Series
2003-5 Note is repurchased by AFC-II pursuant to this Section 6.1, AFC-II shall
have paid the Surety Provider all Surety Provider Fees and all other Surety
Provider Reimbursement Amounts due and unpaid as of such Distribution
Date.  The repurchase price for any
Series 2003-5 Note shall equal the aggregate outstanding principal balance of
such Series 2003-5 Note (determined after giving effect to any payments of
principal and interest on such Distribution Date), plus accrued and unpaid
interest on such outstanding principal balance.

 

Section 6.2             Information. 
The Trustee shall provide to the Series 2003-5 Noteholders, or their
desig­nated agent, and the Surety Provider copies of all information furnished
to the Trustee or AFC-II pursuant to the Related Documents, as such information
relates to the Series 2003-5 Notes or the Series 2003-5 Collateral.  In connection with any Preference Amount
payable under the Surety Bond, the Trustee shall furnish to the Surety Provider
its records evi­dencing the distributions of principal of and interest on the
Series 2003-5 Notes that have been made and subsequently recovered from
Series 2003-5 Noteholders and the dates on which such payments were made.

 

Section 6.3             Exhibits. 
The following exhibits attached hereto supplement the exhibits included
in the Indenture.

	
  Exhibit A-1-1:

  	
  Form of Restricted Global Class A-1 Note

  
	
  Exhibit A-1-2:

  	
  Form of Temporary Global Class A-1 Note

  
	
  Exhibit A-1-3:

  	
  Form of Permanent Global Class A-1 Note

  
	
  Exhibit A-2-1

  	
  Form of Restricted Global Class A-2 Note

  
	
  Exhibit A-2-2

  	
  Form of Temporary Global Class A-2 Note

  
	
  Exhibit A-2-3

  	
  Form of Permanent Global Class A-2 Note

  
	
  Exhibit B:

  	
  Form of Consent

  
	
  Exhibit C:

  	
  Form of Series 2003-5 Demand Note

  

 

46

 

	
  Exhibit D:

  	
  Form of Letter of Credit

  
	
  Exhibit E:

  	
  Form of Lease Payment Deficit Notice

  
	
  Exhibit F:

  	
  Form of Demand Notice

  

 

Section 6.4             Ratification of Base Indenture. 
As supplemented by this Supplement, the Base Indenture is in all
respects ratified and confirmed and the Base Indenture as so supplemented by
this Supplement shall be read, taken, and construed as one and the same
instrument.

 

Section 6.5             Counterparts. 
This Supplement may be executed in any number of counterparts, each of
which so executed shall be deemed to be an original, but all of such
counterparts shall together constitute but one and the same instrument.

 

Section 6.6             Governing Law. 
This Supplement shall be construed in accordance with the law of the
State of New York, and the obligations, rights and remedies of the parties
hereto shall be determined in accordance with such law.

 

Section 6.7             Amendments. 
This Supplement may be modified or amended from time to time with the
consent of the Surety Provider and in accordance with the terms of the Base
Indenture; provided, however, that if, pursuant to the terms of
the Base Indenture or this Supplement, the consent of the Required Noteholders
is required for an amendment or modification of this Supplement, such
requirement shall be satisfied if such amendment or modification is consented
to by the Series 2003-5 Noteholders representing more than 50% of the aggregate
outstanding principal amount of the Series 2003-5 Notes affected thereby; provided,
further, that if that consent of the Required Noteholders is required
for a proposed amendment or modification of this Supplement that (i) affects
only the Class A-1 Notes (and does not affect in any material respect the Class
A-2 Notes, as evidenced by an opinion of counsel to such effect), then such
requirement shall be satisfied if such amendment or modification is consented
to by the Class A-1 Noteholders representing more than 50% of the aggregate
outstanding principal amount of the Class A-1 Notes (without the necessity of
obtaining the consent of the Required Noteholders in respect of the Class A-2
Notes) and (ii) affects only the Class A-2 Notes (and does not affect in
material respect the Class A-1 Notes, as evidenced by an opinion of counsel to
such effect), then such requirement shall be satisfied if such amendment or modification
is consented to by the Class A-2 Noteholders representing more than 50% of the
aggregate outstanding principal amount of the Class A-2 Notes (without the
necessity of obtaining the consent of the Required Noteholders in respect of
the Class A-1 Notes).

 

Section 6.8             Discharge of Indenture. 
Notwithstanding anything to the contrary contained in the Base
Indenture, no discharge of the Indenture pursuant to Section 11.1(b) of the
Base Indenture will be effective as to the Series 2003-5 Notes without the
consent of the Required Noteholders.

 

Section 6.9             Notice to Surety Provider and
Rating Agencies.  The Trustee shall provide to the Surety
Provider and each Rating Agency a copy of each notice, opinion of counsel,
certificate or other item delivered to, or required to be provided by, the
Trustee pursuant to this Supplement or any other Related Document.  Each such opinion of counsel shall be

 

47

 

addressed to the Surety Provider, shall be from counsel reasonably
acceptable to the Surety Provider and shall be in form and substance reasonably
acceptable to the Surety Provider.  All
such notices, opin­ions, certificates or other items delivered to the Surety
Provider shall be forwarded to XL Capital Assurance Inc., 1221 Avenue of the
Americas, New York, New York 10020-1001, Attention: Surveillance, Telephone:
(212) 478-3400.

 

Section 6.10           Certain Rights of Surety Provider. 
The Surety Provider shall be deemed to be an En­hancement Provider
entitled to receive confirmation of the rating on the Series 2003-5 Notes
(without regard to the Surety Bond) pursuant to the definition of “Rating
Agency Confirmation Condition.”  In
addition, the Surety Provider shall be deemed to be an Enhancement Provider
entitled to exercise the consent rights described in clause (ii) of the
definition of “Rating Agency Consent Condition.”

 

Section 6.11           Surety Provider Deemed Noteholder
and Secured Party.  Except for any period during which a Surety
Default is continuing, the Surety Provider shall be deemed to be the holder of
100% of the Series 2003-5 Notes for the purposes of giving any consents,
waivers, approvals, instructions, directions, requests, declarations and/or
notices pursuant to the Base Indenture and this Supplement.  Any reference in the Base Indenture or the
Related Documents (including, without limitation, in Sections 2.3, 8.14, 9.1,
9.2 or 12.1 of the Base Inden­ture) to materially, adversely, or detrimentally
affecting the rights or interests of the Noteholders, or words of similar
meaning, shall be deemed, for purposes of the Series 2003-5 Notes, to refer to
the rights or interests of the Surety Provider.  The Surety Provider shall constitute an “Enhancement Provider”
with respect to the Series 2003-5 Notes for all purposes under the Indenture
and the other Related Documents. 
Furthermore, the Surety Provider shall be deemed to be a “Secured Party”
under the Base Indenture and the Related Documents to the extent of amounts
payable to the Surety Provider pursuant to this Supplement and the Insurance
Agreement shall constitute an “Enhancement Agreement” with respect to the
Series 2003-5 Notes for all purposes under the Indenture and the Related
Documents.  Moreover, wherever in the Related
Documents money or other property is assigned, conveyed, granted or held for, a
filing is made for, action is taken for or agreed to be taken for, or a
representation or warranty is made for the benefit of the Noteholders, the
Surety Provider shall be deemed to be the Noteholder with respect to 100% of
the Series 2003-5 Notes for such purposes.

 

Section 6.12           Capitalization of AFC-II. 
AFC-II agrees that on the Series 2003-5 Closing Date it will have
capitalization in an amount equal to or greater than 3% of the sum of (x) the
Series 2003-5 Invested Amount and (y) the invested amount of the Series 1998-1
Notes,  the Series 2000-2 Notes, the
Series 2000-3 Notes, the Series 2000-4 Notes, the Series 2001-1 Notes, the
Series 2001-2 Notes, the Series 2002-1 Notes, the Series 2002-2 Notes, the
Series 2002-3 Notes, the Series 2003-1 Notes, the Series 2003-2 Notes, the
Series 2003-3 Notes and the Series 2003-4 Notes.

 

Section 6.13           Series 2003-5 Required Non-Program
Enhancement Percentage.  AFC-II agrees that it will
not make any Loan under any Loan Agreement to finance the acquisition of any
Vehicle by AESOP Leasing, AESOP Leasing II or ARAC, as the case may be, if,
after giving effect to the making of such Loan, the acquisition of such Vehicle
and the inclusion of such Vehicle under the relevant Lease, the Series 2003-5
Required Non-Program Enhancement Percentage would exceed 25.0%.

 

48

 

Section 6.14           Third Party Beneficiary. 
The Surety Provider is an express third party beneficiary of (i) the
Base Indenture to the extent of provisions relating to any Enhancement Provider
and (ii) this Supplement.

 

Section 6.15           Prior Notice by Trustee to Surety
Provider.  Subject to Section 10.1 of the Base
Indenture, the Trustee agrees that, so long as no Amortization Event shall have
occurred and be continuing with respect to any Series of Notes other than the
Series 2003-5 Notes, it shall not exercise any rights or remedies available to
it as a result of the occurrence of an Amortization Event with respect to the
Series 2003-5 Notes (except those set forth in clauses (f) and (g) of Article
III) or a Series 2003-5 Limited Liquidation Event of Default until after
the Trustee has given prior written notice thereof to the Surety Provider and
obtained the direction of the Required Noteholders with respect to the Series
2003-5 Notes.  The Trustee agrees to
notify the Surety Provider promptly following any exercise of rights or
remedies available to it as a result of the occurrence of any Amortization
Event or a Series 2003-5 Limited Liquidation Event of Default.

 

Section 6.16           Effect of Payments by the Surety
Provider.  Anything herein to the contrary
notwithstanding, any distribution of principal of or interest on the
Series 2003-5 Notes that is made with moneys received pursuant to the
terms of the Surety Bond shall not (except for the purpose of calculating the
Principal Deficit Amount) be considered payment of the Series 2003-5 Notes
by AFC-II.  The Trustee acknowledges
that, without the need for any further action on the part of the Surety
Provider, (i) to the extent the Surety Provider makes payments, directly
or indirectly, on account of principal of or interest on the Series 2003-5
Notes to the Trustee for the benefit of the Series 2003-5 Noteholders or
to the Series 2003-5 Noteholders (including any Preference Amounts as
defined in the Surety Bond), the Surety Provider will be fully subrogated to
the rights of such Series 2003-5 Noteholders to receive such princi­pal
and interest and will be deemed to the extent of the payments so made to be a
Series 2003-5 Noteholder and (ii) the Surety Provider shall be paid
principal and interest in its capacity as a Series 2003-5 Noteholder until
all such payments by the Surety Provider have been fully reimbursed, but only
from the sources and in the manner provided herein for the distribution of such
principal and interest and in each case only after the Series 2003-5
Noteholders have received all payments of principal and interest due to them
hereunder on the related Distribution Date.

 

Section 6.17           Series 2003-5 Demand Notes. 
Other than pursuant to a demand thereon pursuant to Section 2.5,
AFC-II shall not reduce the amount of the Series 2003-5 Demand Notes or forgive
amounts payable thereunder so that the outstanding principal amount of the
Series 2003-5 Demand Notes after such reduction or forgiveness is less than the
Series 2003-5 Letter of Credit Liquidity Amount.  AFC-II shall not agree to any amendment of the Series 2003-5
Demand Notes without first satisfying the Rating Agency Confirmation Condition
and the Rating Agency Consent Condition.

 

Section 6.18           Subrogation. 
In furtherance of and not in limitation of the Surety Provider’s
equitable right of subrogation, each of the Trustee and AFC-II acknowledge
that, to the extent of any payment made by the Surety Provider under the Surety
Bond with respect to interest on or principal of the Series 2003-5 Notes,
including any Preference Amount, as defined in the Surety Bond, the Surety
Provider is to be fully subrogated to the extent of such payment

 

49

 

and any additional interest due on any late payment, to the rights of
the Series 2003-5 Noteholders under the Indenture.  Each of AFC-II and the Trustee agree to such subrogation and,
further, agree to take such actions as the Surety Provider may reasonably
request in writing to evidence such subrogation.

 

Section 6.19           Termination of Supplement. 
This Supplement shall cease to be of further effect when all outstanding
Series 2003-5 Notes theretofore authenticated and issued have been delivered
(other than destroyed, lost, or stolen Series 2003-5 Notes which have been
replaced or paid) to the Trustee for cancellation, AFC-II has paid all sums
payable hereunder, the Surety Provider has been paid all Surety Provider Fees
and all other Surety Provider Reimbursement Amounts due under the Insurance
Agreement and, if the Series 2003-5 Demand Note Payment Amount on the Series
2003-5 Letter of Credit Termination Date was greater than zero, all amounts
have been withdrawn from the Series 2003-5 Cash Collateral Account in
accordance with Section 2.8(i).

 

50

 

IN WITNESS WHEREOF,
AFC-II and the Trustee have caused this Supplement to be duly executed by their
respective officers thereunto duly authorized as of the day and year first
above written.

 

	
   

  	
  AESOP FUNDING II L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lori Gebron

  
	
   

  	
  Title:  Vice President

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW
  YORK (as successor in

  interest to the corporate trust administration of

  Harris Trust and Savings Bank), as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Eric
  Lindahl

  
	
   

  	
  Title:  Agent

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK, as Series 2003-5 Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Eric
  Lindahl

  
	
   

  	
  Title:  Agent

  

 

 

Table of Contents

 

	
  ARTICLE
  I  DEFINITIONS

  	
   

  
	
   

  	
   

  
	
  ARTICLE II 
  SERIES 2003-5 ALLOCATIONS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 2.1

  	
  Establishment of Series 2003-5 Collection
  Account, Series 2003-5 Excess Collection Account and Series 2003-5 Accrued
  Interest Account

  	
   

  
	
   

  	
  Section 2.2

  	
  Allocations with Respect to the Series
  2003-5 Notes

  	
   

  
	
   

  	
  Section 2.3

  	
  Payments to Noteholders

  	
   

  
	
   

  	
  Section 2.4

  	
  Payment of Note Interest

  	
   

  
	
   

  	
  Section 2.5

  	
  Payment of Note Principal

  	
   

  
	
   

  	
  Section 2.6

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

  	
   

  
	
   

  	
  Section 2.7

  	
  Series-2003-5 Reserve Account

  	
   

  
	
   

  	
  Section 2.8

  	
  Series 2003-5 Letters of Credit and Series
  2003-5 Cash Collateral Account

  	
   

  
	
   

  	
  Section 2.9

  	
  Series 2003-5 Distribution Account

  	
   

  
	
   

  	
  Section 2.10

  	
  Series 2003-5 Interest Rate Caps.

  	
   

  
	
   

  	
  Section 2.11

  	
  Series 2003-5 Accounts Permitted
  Investments

  	
   

  
	
   

  	
  Section 2.12

  	
  Series 2003-5 Demand Notes Constitute
  Additional Collateral for Series 2003-5 Notes

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III  AMORTIZATION EVENTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV 
  RIGHT TO WAIVE PURCHASE
  RESTRICTIONS

  	
   

  
	
   

  	
   

  
	
  ARTICLE V 
  FORM OF SERIES 2003-5 NOTES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.1

  	
  Restricted Global Series 2003-5 Notes

  	
   

  
	
   

  	
  Section 5.2

  	
  Temporary Global Series 2003-5 Notes;
  Permanent Global Series 2003-5 Notes

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI 
  GENERAL

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.1

  	
  Optional Repurchase

  	
   

  
	
   

  	
  Section 6.2

  	
   Information

  	
   

  
	
   

  	
  Section 6.3

  	
  Exhibits

  	
   

  
	
   

  	
  Section 6.4

  	
  Ratification of Base Indenture

  	
   

  
	
   

  	
  Section 6.5

  	
  Counterparts

  	
   

  
	
   

  	
  Section 6.6

  	
  Governing Law

  	
   

  
	
   

  	
  Section 6.7

  	
  Amendments

  	
   

  
	
   

  	
  Section 6.8

  	
  Discharge of Indenture

  	
   

  
	
   

  	
  Section 6.9

  	
  Notice to Surety Provider and Rating
  Agencies

  	
   

  
	
   

  	
  Section 6.10

  	
  Certain Rights of Surety Provider

  	
   

  
						

 

i

 

	
   

  	
  Section 6.11

  	
  Surety Provider Deemed Noteholder and
  Secured Party

  	
   

  
	
   

  	
  Section 6.12

  	
  Capitalization of AFC-II

  	
   

  
	
   

  	
  Section 6.13

  	
  Series 2003-5 Required Non-Program
  Enhancement Percentage

  	
   

  
	
   

  	
  Section 6.14

  	
  Third Party Beneficiary

  	
   

  
	
   

  	
  Section 6.15

  	
  Prior Notice by Trustee to Surety Provider

  	
   

  
	
   

  	
  Section 6.16

  	
  Effect of Payments by the Surety Provider

  	
   

  
	
   

  	
  Section 6.17

  	
  Series 2003-5 Demand Notes

  	
   

  
	
   

  	
  Section 6.18

  	
  Subrogation

  	
   

  
	
   

  	
  Section 6.19

  	
  Termination of Supplement

  	
   

  

 

iiExhibit 10.43

 

EXECUTION COPY

 

 

CHESAPEAKE FUNDING LLC,

as Issuer

 

and

 

JPMORGAN CHASE BANK,

as Indenture Trustee

 

 

SERIES 2003-2 INDENTURE SUPPLEMENT

 

dated as of November 19, 2003

 

to

 

BASE INDENTURE

 

dated as of June 30, 1999

 

 

$500,000,000

of

Floating Rate Callable Asset-Backed Investor Notes

 

 

Table
of Contents

 

	
  PRELIMINARY STATEMENT

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DESIGNATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE I DEFINITIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II ARTICLE 5 OF THE BASE
  INDENTURE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 5A.1

  	
  Establishment of Series 2003-2 Subaccounts.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5A.2

  	
  Allocations with Respect to the Series
  2003-2 Investor Notes.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5A.3

  	
  Determination of Interest.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5A.4

  	
  Monthly Application of Collections.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5A.5

  	
  Payment of Monthly Interest Payment.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5A.6

  	
  Payment of Principal.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5A.7

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

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5A.8

  	
  Series 2003-2 Reserve Account.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5A.9

  	
  Series 2003-2 Yield Supplement Account.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5A.10

  	
  Series 2003-2 Distribution Account.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5A.11

  	
  Lease Rate Caps.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III AMORTIZATION EVENTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV OPTIONAL PREPAYMENT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V
  SERVICING AND ADMINISTRATOR FEES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.1

  	
  Servicing Fees

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.2

  	
  Administrator Fee

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI
  FORM OF SERIES 2003-2 NOTES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.1

  	
  Initial Issuance of Series 2003-2 Investor
  Notes.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.2

  	
  Global Notes.

  	
   

  
							

 

i

 

	
   

  	
  Section 6.3

  	
  Definitive 
  Notes.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII INFORMATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.1

  	
  Ratification of Indenture

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.2

  	
  Obligations Unaffected

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.3

  	
  Governing Law

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.4

  	
  Further Assurances

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.5

  	
  Exhibits

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.6

  	
  No Waiver; Cumulative Remedies

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.7

  	
  Amendments

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.8

  	
  Severability

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.9

  	
  Counterparts

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.10

  	
  No Bankruptcy Petition

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.11

  	
  SUBIs

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.12

  	
  Notice to Rating Agencies

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.13

  	
  Conflict of Instructions

  	
   

  
					

 

EXHIBITS

 

	
  Exhibit A-1:

  	
  Form of Class A-1 Note

  
	
  Exhibit A-2:

  	
  Form of Class A-2 Note

  
	
  Exhibit B:

  	
  Form of Monthly Settlement Statement

  
	
  Exhibit C:

  	
  Form of Series 2003-2 Lease Rate Cap

  

 

ii

 

SERIES 2003-2 SUPPLEMENT, dated as of November 19, 2003 (as
amended, supplemented, restated or otherwise modified from time to time, this “Indenture
Supplement”) between CHESAPEAKE FUNDING LLC (formerly known as Greyhound
Funding LLC), a special purpose limited liability company established under the
laws of Delaware (the “Issuer”), and JPMORGAN CHASE BANK (formerly known
as The Chase Manhattan Bank) (“JPMorgan Chase”), a New York banking
corporation, 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 June 30, 1999, 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 a 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 Series 2003-2 Floating Rate
Callable Asset Backed Investor Notes.

 

The Series 2003-2 Investor Notes shall be issued in two classes:  one of which shall be designated as Series
2003-2 Floating Rate Callable Asset Backed Investor Notes, Class A-1, and
referred to herein as the Class A-1 Investor Notes and the other of which shall
be designated as the Series 2003-2 Floating Rate Callable Asset Backed Investor
Notes, Class A-2, and referred to herein as the Class A-2 Investor Notes.  The Class A-1 Investor Notes and the Class
A-2 Investor Notes are referred to herein collectively as the “Series 2003-2
Investor Notes.”  The Series 2003-2
Investor Notes shall be issued in minimum denominations of $1,000 and integral
multiples of $1,000 in excess thereof.

 

The net proceeds from the sale of the Series 2003-2 Investor Notes (as
defined herein) shall be applied in accordance with Section 5A.2(b) and
the portion thereof deposited in the Series 2003-2 Principal Collection
Subaccount shall be used by the Issuer to fund the maintenance of the SUBI
Certificates under the Transfer Agreement and/or to reduce the Invested Amounts
of other Series of Investor Notes.

 

ARTICLE I

DEFINITIONS

 

(a)  All capitalized terms not
otherwise defined herein are defined in the Definitions List attached to the
Base Indenture as Schedule 1 thereto. All Article, Section or

 

 

Subsection references
herein shall refer to Articles, Sections or Subsections of the Base Indenture,
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 2003-2 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 2003-2
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:

 

“Additional Interest” is defined in Section 5A.3(c).

 

“Amortization Event” is defined in Article 3.

 

“Assumed Lease Term” means, with respect to any Series 2003-2
Yield Shortfall Lease, the number of months over which the Capitalized Cost of
the related Leased Vehicle is being depreciated thereunder.

 

“Authorized Newspaper” means a daily newspaper published in the
English language of general circulation in Luxembourg (or if publication is not
practical in Luxembourg, in Europe).

 

“Avis” means Avis Group Holdings, Inc. and its successors and
assigns.

 

“Calculation Agent” means JPMorgan Chase Bank, in its capacity
as calculation agent with respect to the Series 2003-2 Note Rates.

 

“Car” means an automobile or a Light-Duty Truck.

 

“Cendant” means Cendant Corporation and its successors and
assigns.

 

“Class A-1 Final Maturity Date” means the November 2008
Payment Date.

 

“Class A-1 Initial Invested Amount” means the aggregate initial
principal amount of the Class A-1 Investor Notes, which is $230,000,000.

 

“Class A-1 Interest Shortfall Amount” is defined in
Section 5A.3(c).

 

“Class A-1 Invested Amount” means as of any date of
determination, an amount equal to (a) the Class A-1 Initial Invested
Amount minus (b) the amount of principal payments made to Class A-1
Investor Noteholders on or prior to such date.

 

“Class A-1 Investor Noteholder” means the Person in whose name a
Class A-1 Investor Note is registered in the Note Register.

 

“Class A-1 Investor Notes” means any one of the Series 2003-2
Floating Rate Callable Asset Backed Investor Notes, Class A-1, executed by the
Issuer and

 

 

2

 

authenticated by or on behalf of the
Indenture Trustee, substantially in the form of Exhibit A-1.  Definitive Class A-1 Investor Notes shall
have such insertions and deletions as are necessary to give effect to the
provisions of Section 2.11 of the Base Indenture.

 

“Class A-1 Monthly Interest” means, with respect to any Series
2003-2 Interest Period, an amount equal to the product of (i) the Class A-1
Note Rate for such Series 2003-2 Interest Period, (ii) the Class A-1 Invested
Amount on the first day of such Series 2003-2 Interest Period, after giving
effect to any principal payments made on such date, or, in the case of the
initial Series 2003-2 Interest Period, the Class A-1 Initial Invested Amount
and (iii) a fraction, the numerator of which is the number of days in such
Series 2003-2 Interest Period and the denominator of which is 360.

 

“Class A-1 Note Rate” means, (i) with respect to the initial
Series 2003-2 Interest Period, 1.32% per annum and (ii) with respect to each
Series 2003-2 Interest Period thereafter, a rate per annum equal to One-Month
LIBOR for such Series 2003-2 Interest Period plus 0.20% per annum.

 

“Class A-2 Final Maturity Date” means the November 2015
Payment Date.

 

“Class A-2 Initial Invested Amount” means the aggregate initial
principal amount of the Class A-2 Investor Notes, which is $270,000,000.

 

“Class A-2 Interest Shortfall Amount” is defined in
Section 5A.3(c).

 

“Class A-2 Invested Amount” means, as of any date of
determination, an amount equal to (a) the Class A-2 Initial Invested
Amount minus (b) the amount of principal payments made to Class A-2
Investor Noteholders on or prior to such date.

 

“Class A-2 Investor Noteholder” means the Person in whose name a
Class A-2 Investor Note is registered in the Note Register.

 

“Class A-2 Investor Notes” means any one of the Series 2003-2
Floating Rate Asset Backed Callable Investor Notes, Class A-2, executed by the
Issuer and authenticated by or on behalf of the Indenture Trustee,
substantially in the form of Exhibit A-2. 
Definitive Class A-2 Investor Notes shall have such insertions and
deletions as are necessary to give effect to the provisions of
Section 2.11 of the Base Indenture.

 

“Class A-2 Monthly Interest” means, with respect to any Series
2003-2 Interest Period, an amount equal to the product of (i) the Class A-2
Note Rate for such Series 2003-2 Interest Period, (ii) the Class A-2 Invested
Amount on the first day of such Series 2003-2 Interest Period, after giving
effect to any principal payments made on such date, or, in the case of the
initial Series 2003-2 Interest Period, the Class A-2 Initial Invested Amount
and (iii) a fraction, the numerator of which is the number of days in such
Series 2003-2 Interest Period and the denominator of which is 360.

 

“Class A-2 Note Rate” means, (i) with respect to the initial
Series 2003-2 Interest Period, 1.42% per annum and (ii) with respect to each
Series 2003-2 Interest Period

 

3

 

thereafter, a rate per annum equal to
One-Month LIBOR for such Series 2003-2 Interest Period plus 0.30% per annum.

 

“Deficiency” is defined in Section 5A.4(b)(i).

 

“Dividend Amount” means, with respect to any Payment Date, the
aggregate amount of dividends payable to the Series 2003-2 Preferred Members in
respect of their Series 2003-2 Preferred Membership Interests pursuant to the
LLC Agreement.

 

“Dollar”, “US$” and “$” means lawful currency of the United
States.

 

“DTC” means The Depository Trust Company or its successor, as
the Clearing Agency for the Series 2003-2 Investor Notes.

 

“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.

 

“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

 

(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.

 

4

 

“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

 

(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.

 

5

 

“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

 

(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;

 

6

 

over (b) an amount equal to 2% of the
Aggregate Unit Balance as of such Settlement Date.

 

“Final Maturity Date” means the Class A-1 Final Maturity Date or
the Class A-2 Final Maturity Date.

 

“Forklift” means a high-lift, self-loading mobile vehicle,
equipped with load carriage and forks, for transporting and tiering loads.

 

“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 thousand pounds.

 

“Indenture Supplement” has the meaning set forth in the
preamble.

 

“Interest Shortfall Amount” is defined in Section 5A.3(c).

 

“LIBOR Determination Date” means, with respect to any Series
2003-2 Interest Period, the second London Business Day next preceding the first
day of such Series 2003-2 Interest Period.

 

“Light-Duty Truck” means a Truck having a Gross Vehicle Weight
of under 16,001 pounds.

 

“London Business Day” means any day on which dealings in
deposits in Dollars are transacted in the London interbank market and banking
institutions in London are not authorized or obligated by law or regulation to
close.

 

“Medium-Duty Truck” means a Truck or Tractor having a Gross
Vehicle Weight of between 16,001 thousand pounds and 33,000 thousand pounds.

 

“Monthly Interest Payment” is defined in Section 5A.4(c)(v).

 

“One-Month LIBOR” means, for each Series 2003-2 Interest Period,
the rate per annum determined on the related LIBOR Determination Date by the
Calculation Agent to be the rate for Dollar deposits having a maturity equal to
one month that appears on Telerate Page 3750 at approximately 11:00 a.m.,
London time, on such LIBOR Determination Date; provided,
however, that if such rate does not appear on Telerate Page 3750,
One-Month LIBOR will mean, for such 2003-2 Interest Period, the rate per annum
equal to the arithmetic mean (rounded to the nearest one-one-hundred-thousandth
of one percent) of the rates quoted by the Reference Banks to the Calculation
Agent as the rates at which deposits in Dollars are offered by the Reference
Banks at approximately 11:00 a.m., London time, on the LIBOR Determination Date
to prime banks in the London interbank market for a period equal to one month; provided, further, that if fewer than two
quotations are provided as requested by the Reference Banks,

 

7

 

“One-Month LIBOR” for such Series 2003-2
Interest Period will mean the arithmetic mean (rounded to the nearest
one-one-hundred-thousandth of one percent) of the rates quoted by major banks
in New York, New York selected by the Calculation Agent, at approximately 10:00
a.m., New York City time, on the first day of such Series 2003-2 Interest
Period for loans in Dollars to leading European banks for a period equal to one
month; provided, finally, that if
no such quotes are provided, “One-Month LIBOR” for such Series 2003-2 Interest
Period will mean One-Month LIBOR as in effect with respect to the preceding
Series 2003-2 Interest Period.

 

“Outstanding” means, with respect to the Series 2003-2 Investor
Notes, all Series 2003-2 Investor Notes theretofore authenticated and delivered
under the Indenture, except (a) Series 2003-2 Investor Notes theretofore
canceled or delivered to the Transfer Agent and Registrar for cancellation, (b)
Series 2003-2 Investor Notes which have not been presented for payment but
funds for the payment of which are on deposit in the Series 2003-2 Distribution
Account and are available for payment of such Series 2003-2 Investor Notes, and
Series 2003-2 Investor Notes which are considered paid pursuant to Section 11.1
of the Base Indenture, or (c) Series 2003-2 Investor Notes in exchange for or
in lieu of other Series 2003-2 Investor Notes which have been authenticated and
delivered pursuant to the Indenture unless proof satisfactory to the Indenture
Trustee is presented that any such Series 2003-2 Investor Notes are held by a
purchaser for value.

 

“Payment Date” means the 7th day of each month, or if such date
is not a Business Day, the next succeeding Business Day, commencing
December 8, 2003.

 

“PHH” means PHH Corporation and its successors and assigns.

 

“Prepayment Date” is defined in Article 4.

 

“Rating Agencies” means, with respect to the Series 2003-2
Investor Notes, Standard & Poor’s, Moody’s and any other nationally
recognized rating agency rating the Series 2003-2 Investor Notes at the request
of the Issuer.

 

“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 Issuer and the Indenture Trustee
in writing that such action will not result in a reduction or withdrawal of the
then current rating of the Series 2003-2 Investor Notes or of any Series 2003-2
Preferred Membership Interests.

 

“Record Date” means, with respect to each Payment Date, the last
day of the immediately preceding calendar month.

 

“Reference Banks” means four major banks in the London interbank
market selected by the Calculation Agent.

 

8

 

“Series 2003-2” means Series 2003-2, the Principal Terms of
which are set forth in this Indenture Supplement.

 

“Series 2003-2 Administrator Fee” is defined in Section 5.2.

 

“Series 2003-2 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 2003-2 Required Asset Amount as of such date and the denominator
of which is the sum of (x) the Series 2003-2 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 2003-2 Allocated Asset Amount Deficiency” means, as of
any date of determination, the amount, if any, by which the Series 2003-2
Allocated Adjusted Aggregate Unit Balance is less than the Series 2003-2
Required Asset Amount as of such date.

 

“Series 2003-2 Amortization Period” means the period beginning
at the earlier of (a) the close of business on the Business Day immediately
preceding the day on which an Amortization Event is deemed to have occurred
with respect to the Series 2003-2 Investor Notes and (b) the close of business
on the Period End Date in May 2005 and ending on the date when (i) the Series
2003-2 Investor Notes are fully paid, (ii) all dividends accrued and
accumulated on the Series 2003-2 Preferred Membership Interests shall have been
declared and paid in full, (iii) the Series 2003-2 Preferred Membership
Interests shall have been redeemed in accordance with their terms and (iv) all
amounts owing in respect of the Series 2003-2 Preferred Membership Interests
under the Series 2003-2 Preferred Membership Interest Purchase Agreement shall
have been paid in full by the Issuer.

 

“Series 2003-2 Available Excess Collections Amount” means, on
any Business Day during the period commencing on a Period End Date to but
excluding the next succeeding Settlement Date, an amount equal to the excess,
if any, of (a) the amount deposited in the Series 2003-2 General Collection
Subaccount during the immediately preceding Monthly Period pursuant to Section 5A.2(a)
over (b) the sum of (i) the amounts to be distributed from the Series 2003-2
Settlement Collection Subaccount pursuant to paragraphs (i) through (xii) of Section 5A.4(c)
on such Settlement Date, and (ii) any amounts owing in respect of the Series
2003-2 Preferred Membership Interests under the Series 2003-2 Preferred
Membership Interest Purchase Agreement on such Settlement Date.

 

“Series 2003-2 Basic Servicing Fee” is defined in Section 5.1.

 

“Series 2003-2 Closing Date” means November 19, 2003.

 

9

 

“Series 2003-2 Collateral” means the Collateral, the Series
2003-2 Reserve Account, the Series 2003-2 Yield Supplement Account, the Series
2003-2 Distribution Account and the Series 2003-2 Lease Rate Caps.

 

“Series 2003-2 Collection Subaccount” is defined in Section 5A.1(a).

 

“Series 2003-2 Distribution Account” is defined in Section 5A.10(a).

 

“Series 2003-2 Eligible Counterparty” means a financial
institution having on the date of any acquisition of a Lease Rate Cap
short-term debt ratings of at least 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 2003-2 Excess Fleet Receivable Amount” means, for any
Settlement Date, an amount equal to the product of (a) the average daily Series
2003-2 Invested Percentage during the immediately preceding Monthly Period and
(b) the Excess Fleet Receivable Amount for such Settlement Date.

 

“Series 2003-2 Gain on Sale Account Percentage” means 10%.

 

“Series 2003-2 Global Notes” is defined in Section 6.2.

 

“Series 2003-2 Hypothetical Yield Shortfall Amount” means, for
any Settlement Date, an amount equal to the product of (x) the excess, if any,
of the Series 2003-2 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 2003-2 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 2003-2 Initial Invested Amount” means the sum of the
Class A-1 Initial Invested Amount and the Class A-2 Initial Invested Amount.

 

“Series 2003-2 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 2003-2 Interest Period shall commence on and include the Series 2003-2
Closing Date and end on and include December 7, 2003.

 

“Series 2003-2 Invested Amount” means, as of any date of
determination, the sum of the Class A-1 Invested Amount and the Class A-2
Invested Amount as of such date.

 

“Series 2003-2 Invested Percentage” means, with respect to any
Business Day (i) during the Series 2003-2 Revolving Period, the percentage
equivalent (which percentage shall never exceed 100%) of a fraction the
numerator of which shall be equal to the Series 2003-2 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

 

10

 

been paid in full but as to which the
Amortization Period has not ended, as of the end of such immediately preceding
Business Day or (ii) during the Series 2003-2 Amortization Period, the
percentage equivalent (which percentage shall never exceed 100%) of a fraction
the numerator of which shall be equal to the Series 2003-2 Allocated Adjusted
Aggregate Unit Balance as of the end of the Series 2003-2 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 has
not ended, as of the end of the immediately preceding Business Day.

 

“Series 2003-2 Investor Noteholder” means, collectively, the
Class A-1 Investor Noteholders and the Class A-2 Investor Noteholders.

 

“Series 2003-2 Investor Note Owner” means, with respect to a
Series 2003-2 Global Note, the Person who is the beneficial owner of an
interest in such Series 2003-2 Global Note, as reflected on the books of DTC,
or on the books of a Person maintaining an account with DTC (directly as a
Clearing Agency Participant or as an indirect participant, in each case in
accordance with the rules of DTC).

 

“Series 2003-2 Investor Notes” means, collectively, the Class A-1
Investor Notes and the Class A-2 Investor Notes.

 

“Series 2003-2 Junior Preferred Membership Interests” means the
Junior Preferred Membership Interests relating to the Series 2003-2 Investor
Notes, if any, issued by the Issuer pursuant to the LLC Agreement.

 

“Series 2003-2 Lease Rate Cap” means one or more interest rate
caps whether now or hereafter existing or acquired, substantially in the form
of Exhibit C, from a Series 2003-2 Eligible Counterparty.

 

“Series 2003-2 Liquid Credit Enhancement Deficiency” means, on
any date of determination, the amount by which the Series 2003-2 Reserve
Account Amount is less than the Series 2003-2 Required Reserve Account Amount.

 

“Series
2003-2 Minimum Yield Rate”
means, for any Settlement Date, a rate per annum equal to the sum of (i) the
Series 2003-2 Weighted Average Cost of Funds for such Settlement Date, (ii)
0.225% and (iii) 0.48%.

 

“Series 2003-2 Monthly Interest” means, with respect to any
Series 2003-2 Interest Period, the sum of Class A-1 Monthly Interest and Class
A-2 Monthly Interest for such Series 2003-2 Interest Period.

 

“Series 2003-2 Monthly Residual Value Gain” means, for any
Settlement Date, an amount equal to the product of (a) the average daily Series
2003-2 Invested Percentage during the immediately preceding Monthly Period and
(b) the Monthly Residual Value Gain for such Settlement Date.

 

11

 

“Series 2003-2 Note Rate” means the Class A-1 Note Rate or the
Class A-2 Note Rate, as the context may require.

 

“Series 2003-2 Note Termination Date” means the date on which
the Series 2003-2 Investor Notes are fully paid.

 

“Series 2003-2 Preferred Member Distribution Account” means the
account established in respect of the Series 2003-2 Preferred Membership Interests
pursuant to the LLC Agreement.

 

“Series 2003-2 Preferred Members” means the registered holders
of the Series 2003-2 Preferred Membership Interests.

 

“Series 2003-2 Preferred Membership Interest Purchase Agreement”
means, collectively, one or more purchase agreements among the Issuer, one or
more purchasers of the Series 2003-2 Senior Preferred Membership Interests
thereunder, any agents of such purchasers, any banks or other financial
institutions providing liquidity funding to such purchasers and the
Administrator, as the same may from time to time be amended, supplemented or
otherwise modified in accordance with its terms, and one or more purchase
agreements relating to the Series 2003-2 Junior Preferred Membership Interests
among the Issuer, one or more purchasers of the Series 2003-2 Junior Preferred
Membership Interests and the Administrator, as the same may from time to time
be amended, supplemented or otherwise modified in accordance with its terms.

 

“Series 2003-2 Preferred Membership Interests” means the Series
2003-2 Senior Preferred Membership Interests and the Series 2003-2 Junior
Preferred Membership Interests, if any.

 

“Series 2003-2 Principal Collection Subaccount” is defined in Section 5A.1(a).

 

“Series 2003-2 Principal Payment Amount” means, for any
Settlement Date, an amount equal to the product of (a) the average daily Series
2003-2 Invested Percentage during the immediately preceding Monthly Period and
(b) the Principal Payment Amount for such Settlement Date.

 

“Series 2003-2 Required Asset Amount” means, as of any date of
determination, the sum of the Series 2003-2 Invested Amount and the Series
2003-2 Required Overcollateralization Amount as of such date.

 

“Series 2003-2 Required Enhancement Amount” means, on any date,
the sum of (a) the Series 2003-2 Required Percentage on such date of the Series
2003-2 Initial Invested Amount 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 2003-2
Invested Percentage as of the last day of the Monthly Period immediately
preceding such Settlement Date and (B) 90% of the amount

 

12

 

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

 

(A) the sum of:

 

 (1)
an amount equal to the product of (x) the Series 2003-2 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 2003-2 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 2003-2 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 2003-2 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 2003-2 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 2003-2 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 2003-2 Required
Enhancement Amount shall equal the Series 2003-2 Required Enhancement Amount on
the date of the declaration or occurrence of such Amortization Event.

 

“Series 2003-2 Required Investor Noteholders” means Series
2003-2 Investor Noteholders holding more than 50% of the Series 2003-2 Invested
Amount (excluding any Series 2003-2 Investor Notes held by the Issuer or any
Affiliate of the Issuer).

 

“Series 2003-2 Required Lease Rate Cap” means one or more Series
2003-2 Lease Rate Caps having, in the aggregate, a notional amount on each
Payment Date equal

 

13

 

to the lesser of (x) the average daily Series
2003-2 Invested Percentage during the Monthly Period immediately preceding such
Payment Date of the aggregate Lease Balance of all Fixed Rate Leases allocated
to the Lease SUBI Portfolio as of the last day of the immediately preceding Monthly
Period that were not Fixed Rate Leases when initially allocated to the Lease
SUBI Portfolio or on the Series 2003-2 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 (y) the sum of the Series
2003-2 Invested Amount and the aggregate stated liquidation preference of the
Series 2003-2 Preferred Membership Interests on such Payment Date 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 0.705% per annum.

 

“Series 2003-2 Required Overcollateralization Amount” means, on
any date of determination during an Accrual Period, the amount by which the
Series 2003-2 Required Enhancement Amount exceeds the sum of (a) the Series
2003-2 Reserve Account Amount and (b) the amount on deposit in the Series
2003-2 Principal Collection Subaccount on such date (excluding any amounts
deposited therein pursuant to Section 5A.2(d) during the Monthly Period
commencing after the first day of such Accrual Period).

 

“Series 2003-2 Required Percentage” means, on any date of
determination, 13.19% unless:

 

(a)  for the most recent
Settlement Date all of the following were true:

 

(i)  the Three Month Average
Charge-Off Ratio was 0.50 % or less;

 

(ii)  the Twelve Month Average
Charge-Off Ratio was 0.25% or less;

 

(iii)  the Three Month Average
Residual Value Loss Ratio was 10.00% or less;

 

(iv)  the Twelve Month Average
Residual Value Loss Ratio was 5.00% or less;

 

(v)  the Three Month Average
Paid-In Advance Loss Ratio was 1.00% or less;

 

(vi)  the Twelve Month Average
Paid-In Advance Loss Ratio was 0.50% or less; and

 

(vii)  the Three Month Average
Delinquency Ratio was 4.50% or less;

 

in which case, the Series 2003-2 Required
Percentage on such date will equal 12.36% or

 

(b)  for the most recent
Settlement Date any one of the following was true:

 

(i)  the Three Month Average
Charge-Off Ratio exceeded 0.75%;

 

(ii)  the Twelve Month Average
Charge-Off Ratio exceeded 0.50%;

 

14

 

(iii)  the Three Month Average
Residual Value Loss Ratio exceeded 12.50%;

 

(iv)  the Twelve Month Average
Residual Value Loss Ratio exceeded 10.00%;

 

(v)  the Twelve Month Average
Paid-In Advance Loss Ratio exceeded 0.75%; or

 

(vi)  the Three Month Average
Delinquency Ratio exceeded 6.00%;

 

in which case, the Series 2003-2 Required
Percentage on such date will equal 14.01%.

 

“Series 2003-2 Required Reserve Account Amount” means an amount
equal to 2.2032% of the Series 2003-2 Initial Invested Amount.

 

“Series 2003-2 Required Yield Supplement Amount” means, on any
Settlement Date, the excess, if any, of (a) the Series 2003-2 Yield Shortfall
Amount for such Settlement Date over (b) 70% of the product of (x) the Series
2003-2 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 Receivable Purchase Termination Event, the Series 2003-2 Required Yield
Supplement Amount on any Settlement Date will equal the Series 2003-2 Yield
Shortfall Amount for such Settlement Date.

 

“Series 2003-2 Reserve Account” is defined in Section 5A.8(a).

 

“Series 2003-2 Reserve Account Amount” means, on any date of
determination, the amount on deposit in the Series 2003-2 Reserve Account and
available for withdrawal therefrom.

 

“Series 2003-2 Reserve Account Surplus” means, on any date of
determination, the amount, if any, by which the Series 2003-2 Reserve Account
Amount exceeds the Series 2003-2 Required Reserve Account Amount.

 

“Series 2003-2 Revolving Period” means the period from and
including the Series 2003-2 Closing Date to but excluding the commencement of
the Series 2003-2 Amortization Period.

 

“Series 2003-2 Senior Preferred Membership Interests” means each
series of Senior Preferred Membership Interests relating to the Series 2003-2
Investor Notes issued by the Issuer pursuant to the LLC Agreement.

 

“Series 2003-2 Series Servicing Fee Percentage” is defined in Section 5.1.

 

“Series 2003-2 Supplemental Servicing Fee” is defined in Section 5.1.

 

“Series 2003-2 Settlement Collection Subaccount” is defined in Section 5A.1(a).

 

“Series 2003-2 Subaccounts” is defined in Section 5A.1(a).

 

15

 

“Series 2003-2 Weighted Average Cost of Funds” means, for any
Settlement Date, the product of (a) the quotient of the sum of (i) the
aggregate amount of interest payable on the Series 2003-2 Investor Notes on
such Settlement Date and (ii) the aggregate amount of dividends payable on the
Series 2003-2 Preferred Membership Interests on such Settlement Date, divided by the sum of (i) the Series
2003-2 Invested Amount as of the first day of the immediately preceding Series
2003-2 Interest Period and (ii) the aggregate stated liquidation preference of
the Series 2003-2 Preferred Membership Interests as of such day and (b) a
fraction, the numerator of which is 360 and the denominator of which is the
number of days in the Series 2003-2 Interest Period ending on such Settlement
Date.

 

“Series 2003-2 Weighted Average Yield Shortfall” means, for any
Settlement Date, the excess, if any, of (a) the Series 2003-2 Minimum Yield
Rate for such Settlement Date over (b) the Series 2003-2 Weighted Average Yield
Shortfall Lease Yield for such Settlement Date.

 

“Series 2003-2 Weighted Average Yield Shortfall Lease Yield”
means, for any Settlement Date, the quotient of the sum of the product with
respect to each Series 2003-2 Yield Shortfall Lease of (a) the actual or
implicit finance charge rate applicable to such Series 2003-2 Yield Shortfall
Lease and (b) the Net Book Value of the Leased Vehicle subject to such Series
2003-2 Yield Shortfall Lease as of the last day of the immediately preceding
Monthly Period divided by the
aggregate Net Book Value of the Leased Vehicles subject to all of the Series
2003-2 Yield Shortfall Leases as of the last day of the immediately preceding
Monthly Period.

 

“Series 2003-2 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 2003-2 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 2003-2 Yield Shortfall Leases to Fixed Rate Leases, as of the last day
of the immediately preceding Monthly Period.

 

“Series 2003-2 Yield Shortfall Amount” means, for any Settlement
Date, (i) if the Series 2003-2 Hypothetical Yield Shortfall Amount for such
Settlement Date is less than 70% of the product of the Series 2003-2 Invested
Percentage and 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 2003-2 Hypothetical Yield Shortfall Amount and (ii)
otherwise, an amount equal to the product of (x) the Series 2003-2 Weighted
Average Yield Shortfall for such Settlement Date, (y) the Series 2003-2
Invested Percentage on such Settlement Date of the aggregate Lease Balance of all
Series 2003-2 Yield Shortfall Leases as of the last day of the immediately
preceding Monthly Period and (z) the Series 2003-2 Weighted Average Yield
Shortfall Life for such Settlement Date.

 

“Series 2003-2 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

 

16

 

less than the Series 2003-2 Minimum Yield
Rate as of the last day of the immediately preceding Monthly Period.

 

“Series 2003-2 Yield Supplement Account” is defined in Section 5A.9(a).

 

“Series 2003-2 Yield Supplement Account Amount” means, on any
date of determination, the amount on deposit in the Series 2003-2 Yield
Supplement Account and available for withdrawal therefrom.

 

“Series 2003-2 Yield Supplement Account Surplus” means, on any
date of determination, the amount, if any, by which the Series 2003-2 Yield
Supplement Account Amount exceeds the Series 2003-2 Required Yield Supplement
Amount.

 

“Series 2003-2 Yield Supplement Deficiency” means, on any date
of determination, the amount by which the Series 2003-2 Yield Supplement
Account Amount is less than the Series 2003-2 Required Yield Supplement Amount.

 

“Telerate Page 3750” has the meaning set forth in the
International Swaps Derivatives Association, Inc. 1991 Interest Rate and
Currency Exchange Definitions.

 

“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 2003-2 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 2003-2 Invested Percentage during such
Monthly Period and the amount of the Unit Repurchase Payments paid by the
Servicer and/or SPV on such Settlement Date, (iii) an amount equal to the
product of the average daily Series 2003-2 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 2003-2 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 2003-2 Principal Collection Subaccount and the Series
2003-2 General Collection Subaccount transferred to the Series 2003-2
Settlement Collection Subaccount on such Settlement Date pursuant to Section 5A.1(b)
over (b) the  amount withdrawn from the
Series 2003-2 General Collection Subaccount pursuant to Section 5A.2(f)
during the period commencing on the Period End Date immediately preceding such
Settlement Date to but excluding such Settlement Date.

 

“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.

 

“Truck” means a vehicle that carries cargo in a body mounted to
its chassis rather than in a Trailer towed by the vehicle.

 

17

 

“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.

 

ARTICLE II

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 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 2003-2 Investor Notes:

 

Section 5A.1                            Establishment
of Series 2003-2 Subaccounts.

 

(a)  The Indenture Trustee shall
establish and maintain in the name of the Indenture Trustee for the benefit of
the Series 2003-2 Investor Noteholders (i) a subaccount of the Collection
Account (the “Series 2003-2 Collection Subaccount”); and (ii) three
subaccounts of the Series 2003-2 Collection Subaccount: (1) the Series 2003-2
General Collection Subaccount, (2) the Series 2003-2 Principal Collection
Subaccount and (3) the Series 2003-2 Settlement Collection Subaccount (respectively,
the “Series 2003-2 General Collection Subaccount,” the “Series 2003-2
Principal Collection Subaccount” and the “Series 2003-2 Settlement
Collection Subaccount”); the accounts established pursuant to this
Section 5A.1(a), collectively, the “Series 2003-2 Subaccounts”),
each Series 2003-2 Subaccount to bear a designation indicating that the funds
deposited therein are held for the benefit of the Series 2003-2 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 2003-2
Subaccounts and the proceeds thereof for the benefit of the Series 2003-2
Investor Noteholders.  The Series 2003-2
Subaccounts shall be under the sole dominion and control of the Indenture
Trustee for the benefit of the Series 2003-2 Investor Noteholders.

 

(b)  The Issuer shall instruct
the institution maintaining the Collection Account in writing to invest funds
on deposit in the Series 2003-2 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 2003-2 Subaccount may be
invested together with funds held in other subaccounts of the Collection Account.
Amounts on deposit and available for investment in the Series 2003-2 General
Collection Subaccount shall be invested by the Indenture Trustee at the written
direction of the Issuer 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. Amounts on deposit
and available for investment in the Series 2003-2 Principal Collection
Subaccount shall be invested by the Indenture Trustee at the written direction
of the Issuer in Permitted Investments that mature, or that are payable or
redeemable upon demand of the holder thereof, (i) in the case of any such
investment made during the Series 2003-2 Revolving Period, on or prior to the next
Business Day and (ii) in the case of any such investment made on any day during
the Series 2003-2 Amortization Period, on or prior to the Business Day
immediately preceding the next Payment Date. On each Settlement Date, all

 

18

 

interest and
other investment earnings (net of losses and investment expenses) on funds
deposited in the Series 2003-2 Principal Collection Subaccount and the Series
2003-2 General Collection Subaccount shall be deposited in the Series 2003-2
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.

 

Section 5A.2                            Allocations
with Respect to the Series 2003-2 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 2003-2 Investor
Noteholders and deposit in the Series 2003-2 General Collection Subaccount an
amount equal to the product of the Series 2003-2 Invested Percentage on such
Deposit Date and the Collections deposited into the Collection Account on such
Deposit Date.

 

(b)  On the Series 2003-2
Closing Date, the Indenture Trustee shall (i) deposit $545,379.51 of the net
proceeds from the sale of the Series 2003-2 Investor Notes in the Series 2003-2
Settlement Collection Subaccount, (ii) deposit $11,016,000 of the net proceeds
from the sale of the Series 2003-2 Investor Notes in the Series 2003-2 Reserve
Account and (iii) deposit the remainder of the net proceeds from the sale of
the Series 2003-2 Investor Notes in the Series 2003-2 Principal Collection
Subaccount.

 

(c)  On each Determination Date,
the Administrator shall direct the Indenture Trustee in writing to allocate to
the Series 2003-2 Investor Noteholders and deposit in the Series 2003-2
Settlement Collection Subaccount on the immediately succeeding Transfer Date
amounts withdrawn from the Gain on Sale Account on such Transfer Date, in an
amount equal to the product of the average daily Series 2003-2 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 2003-2 Investor Noteholders and deposit in the Series 2003-2
Settlement Collection Subaccount on the immediately succeeding Settlement Date
the following amounts:

 

(i)  any Unit Repurchase
Payments made by the Servicer and/or SPV, in an amount equal to the product of
the average daily Series 2003-2 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 2003-2 Invested Percentage during the immediately preceding
Monthly Period and the amount of such Monthly Servicer Advance;

 

19

 

(iii)  payments made under the
Lease Rate Caps maintained by the Issuer pursuant to Sections 5A.11(a)
and (b), in an amount equal to the product of the average daily Series
2003-2 Invested Percentage during the immediately preceding Monthly Period and
the amount of such payments; and

 

(iv)  all payments made to the
Indenture Trustee under the Series 2003-2 Lease Rate Cap.

 

(e)  During the Series 2003-2
Revolving Period, the Administrator may direct the Indenture Trustee in writing
on any Business Day to withdraw amounts on deposit in the Series 2003-2
Principal Collection Subaccount for either of the following purposes:

 

(i)  if such Business Day is an
Additional Closing Date, to remit all or a portion of the Transferred Asset
Payment due on such Additional Closing Date pursuant to the Transfer Agreement;
or

 

(ii)  to reduce the Invested
Amount of any Series of Investor Notes.

 

(f)  Prior to the occurrence of
a Potential Amortization Event or an Amortization Event, on any Business Day
during the period commencing on a Period End Date to but excluding the next
succeeding Settlement Date on which the Administrator is able to determine the
amounts to be distributed from the Series 2003-2 Settlement Collection Subaccount
pursuant to paragraphs (i) through (xii) of Section 5A.4(c) on such
Settlement Date and any amounts owing in respect of the Series 2003-2 Preferred
Membership Interests under the Series 2003-2 Preferred Membership Interest
Purchase Agreement on such Settlement Date, the Administrator may direct the
Indenture Trustee in writing to withdraw from the Series 2003-2 General
Collection Subaccount and remit to the Issuer the Series 2003-2 Available
Excess Collections Amount for such Business Day.

 

Section 5A.3                            Determination
of Interest.

 

(a)  JPMorgan Chase is hereby
appointed Calculation Agent for the purpose of determining the Series 2003-2
Note Rates for each Series 2003-2 Interest Period.  On each LIBOR Determination Date, the Calculation Agent shall
determine the Series 2003-2 Note Rate for each Class of Series 2003-2 Investor
Notes for the next succeeding Series 2003-2 Interest Period and deliver notice
of such Series 2003-2 Note Rates to the Indenture Trustee.  On each LIBOR Determination Date, the Indenture
Trustee shall deliver to the Administrator notice of the Series 2003-2 Note
Rate for each Class of Series 2003-2 Investor Notes for the next succeeding
Series 2003-2 Interest Period.

 

(b)  Until the Administrator
shall give the Indenture Trustee written notice that neither Class of the
Series 2003-2 Investor Notes is listed on the Luxembourg Stock Exchange, the
Indenture Trustee shall, or shall instruct the Calculation Agent to, cause (i)
the Series 2003-2 Note Rate applicable to each Class of the Series 2003-2
Investor Notes for the next succeeding Series 2003-2 Interest Period, the
number of days in such Series 2003-2 Interest Period, the Payment Date for such
Series 2003-2 Interest Period and the amount of interest payable on each Class
of Series 2003-2 Investor Notes on such Payment Date to be (A) communicated to
DTC,

 

20

 

the Paying
Agent in Luxembourg and the Luxembourg Stock Exchange no later than the
Business Day immediately following each LIBOR Determination Date and (B)
published in the Authorized Newspaper as soon as possible after its
determination.

 

(c)  On each Determination Date,
the Administrator shall determine the excess, if any (the “Interest
Shortfall Amount”), of (i) the sum of (A) the Series 2003-2 Monthly
Interest for the Series 2003-2 Interest Period ending on the next succeeding
Payment Date and (B) the amount of any unpaid Interest Shortfall Amount, as of
the preceding Payment Date (together with any Additional Interest on such Interest
Shortfall Amount) over (ii) the amount which will be available to pay
interest on the Series 2003-2 Investor Notes in accordance with Section 5A.4(c)
on such Payment Date.  If the Interest
Shortfall Amount with respect to any Payment Date is greater than zero,
payments of interest to the Series 2003-2 Investor Noteholders will be reduced
on a pro  rata basis, based on the amount of interest payable to
each such Series 2003-2 Investor Noteholder, by the Interest Shortfall
Amount.  The portion of the Interest
Shortfall Amount allocable to each Class of Series 2003-2 Investor Notes shall
be referred to as the “Class A-1 Interest Shortfall Amount” and the “Class
A-2 Interest Shortfall Amount”, respectively.  An additional amount of interest (“Additional Interest”)
shall accrue on the Class A-1 Interest Shortfall Amount and the Class A-2
Interest Shortfall Amount for each Series 2003-2 Interest Period at the
applicable Series 2003-2 Note Rate for such Series 2003-2 Interest Period.  Until the Administrator shall give the
Indenture Trustee written notice that neither Class of the Series 2003-2
Investor Notes is listed on the Luxembourg Stock Exchange, the Indenture
Trustee shall, or shall instruct the Calculation Agent to, notify the
Luxembourg Stock Exchange if, based solely on the information contained in the
Monthly Settlement Statement with respect to the Series 2003-2 Investor Notes,
the amount of interest to be paid on any Class of the Series 2003-2 Investor
Notes on any Payment Date is less than the amount payable thereon on such
Payment Date, the amount of such deficit and the amount of interest that will
accrue on such deficit during the next succeeding Series 2003-2 Interest Period
by the Business Day prior to such Payment Date.

 

(d)  All communications by or on
behalf of the Indenture Trustee to the Luxembourg Stock Exchange pursuant to
this Section 5A.3 shall be sent by electronic mail to The Bank of
New York c/o listings@bankofny.com.

 

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 2003-2 General Collection Subaccount and allocate to the Series
2003-2 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 2003-2 General Collection Subaccount and the Series 2003-2 Principal
Collection Subaccount transferred to the Series 2003-2 Settlement Collection
Subaccount pursuant to Section 5A.1(b)).

 

(b)  (i)   If the Administrator determines that the
aggregate amount distributable from the Series 2003-2 Settlement Collection
Subaccount pursuant to paragraphs (i) through (ix) of Section 5A.4(c) on
any Payment Date exceeds the Total Cash Available for 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

 

21

 

Payment Date,
and the Indenture Trustee shall, in accordance with such notice, by 11:00 a.m.,
New York City time, on such Payment Date, withdraw from the Series 2003-2
Reserve Account and deposit in the Series 2003-2 Settlement Collection Subaccount
an amount equal to the least of (x) such Deficiency, (y) the product of the
average daily Series 2003-2 Invested Percentage during the immediately
preceding Monthly Period and Aggregate Net Lease Losses for such Monthly Period
and (z) the Series 2003-2 Reserve Account Amount and, to the extent that such
amount is less than the Deficiency, withdraw from the Series 2003-2 Yield
Supplement Account and deposit in the Series 2003-2 Settlement Collection
Subaccount an amount equal to the lesser of the amount of such insufficiency
and the Series 2003-2 Yield Supplement Account Amount.  If the Deficiency with respect to any
Payment Date exceeds the amounts to be withdrawn from the Series 2003-2 Reserve
Account and the Series 2003-2 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,
in accordance with such notice, by 11:00 a.m., New York City time, on such
Payment Date, withdraw from the Series 2003-2 Reserve Account and deposit in
the Series 2003-2 Settlement Collection Subaccount an amount equal to the
lesser of (x) the remaining portion of the Deficiency and (y) the Series 2003-2
Reserve Account Amount (after giving effect to the withdrawal described in the
immediately preceding sentence).

 

(ii)                                  If
the Administrator determines that (A) the amount to be deposited in the Series
2003-2 Distribution Account in accordance with Section 5A.4(c)(ix)
and paid to the Class A-1 Investor Noteholders pursuant to Section 5A.6
on the Class A-1 Final Maturity Date is less than the Class A-1 Invested Amount
or (B) the amount to be deposited in the Series 2003-2 Distribution Account in
accordance with Section 5A.4(c)(ix) and paid to the Class A-2
Investor Noteholders pursuant to Section 5A.6 on the Class A-2
Final Maturity Date is less than the Class A-2 Invested Amount, 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 Final Maturity Date, and the Indenture Trustee shall, in
accordance with such notice, by 11:00 a.m., New York City time, on such Final
Maturity Date, withdraw from the Series 2003-2 Reserve Account and deposit in
the Series 2003-2 Distribution Account an amount equal to the lesser of such
insufficiency and the Series 2003-2 Reserve Account Amount (after giving effect
to any withdrawal therefrom pursuant to Section 5A.4(b)(i) on such
Final Maturity Date). In addition, if the Series 2003-2 Reserve Account Amount
is less than such insufficiency on the Class A-2 Final Maturity Date, 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 the Class A-2 Final Maturity Date, and the Indenture Trustee shall,
in accordance with such notice, by 11:00 a.m., New York City time, on the Class
A-2 Final Maturity Date, withdraw from the Series 2003-2 Yield Supplement
Account and deposit in the Series 2003-2 Distribution Account an amount equal
to the lesser of such remaining insufficiency and the Series 2003-2 Yield
Supplement Account Amount (after giving effect to any withdrawal therefrom
pursuant to Section 5A.4(b)(i) on the Class A-2 Final Maturity
Date).

 

(c)  On each Payment Date, based
solely on the information contained in the Monthly Settlement Statement with
respect to Series 2003-2 Investor Notes, the Indenture

 

22

 

Trustee shall
apply the following amounts allocated to, or deposited in, the Series 2003-2
Settlement Collection Subaccount on such Payment Date in the following order of
priority:

 

(i)  to SPV, an amount equal to
the Series 2003-2 Excess Fleet Receivable Amount, if any, for such Payment
Date;

 

(ii)  to the Gain On Sale
Account, an amount equal to the Series 2003-2 Monthly Residual Value Gain, if
any, for such Payment Date;

 

(iii)  to the Servicer, an
amount equal to the product of the Monthly Servicer Advance Reimbursement
Amount for such Payment Date and the average daily Series 2003-2 Invested
Percentage during the immediately preceding Monthly Period;

 

(iv)  if VMS is not the Servicer,
to the Servicer, an amount equal to the Series 2003-2 Basic Servicing Fee for
the Series 2003-2 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 2003-2
Distribution Account, an amount equal to the Series 2003-2 Monthly Interest
payable on such Payment Date plus
the amount of any unpaid Interest Shortfall Amount, as of the preceding Payment
Date, together with any Additional Interest on such Interest Shortfall Amount
(such amount, the “Monthly Interest Payment”);

 

(vi)  if VMS is the Servicer, to
the Servicer, an amount equal to the Series 2003-2 Basic Servicing Fee for the
Series 2003-2 Interest Period ending on such Payment Date;

 

(vii)  to the Administrator, an
amount equal to the Series 2003-2 Administrator Fee for the Series 2003-2
Interest Period ending on such Payment Date;

 

(viii)  other than during a
Lockout Period, to the Series 2003-2 Preferred Member Distribution Account, an
amount equal to the Dividend Amount for such Payment Date;

 

(ix)  (A) on any Payment Date
immediately succeeding a Monthly Period falling in the Series 2003-2 Revolving
Period, to the Series 2003-2 Principal Collection Subaccount, an amount equal
to the Series 2003-2 Allocated Asset Amount Deficiency, if any, on such Payment
Date, (B) on the earlier of (x) the second Payment Date following the May 2005
Period End Date or (y) the first Payment Date following the occurrence of an
Amortization Event, to the Series 2003-2 Distribution Account, an amount equal
to the lesser of the Series 2003-2 Principal Payment Amount for such Payment
Date and the Series 2003-2 Invested Amount on such Payment Date and (C) if any
Series 2003-2 Preferred Membership Interests are issued and outstanding, on any
Payment Date on and after the Series 2003-2 Note Termination Date, to the
Series 2003-2 Preferred Member Distribution Account, an amount equal to the
Series 2003-2 Principal Payment Amount

 

23

 

for such Payment Date (or, on the Series 2003-2 Note Termination Date,
the portion thereof not deposited into the Series 2003-2 Distribution Account);
provided, however that on or after the Series 2003-2 Note Termination
Date during a Lockout Period, the Series 2003-2 Principal Payment Amount for
such Payment Date (or, on the Series 2003-2 Note Termination Date, the portion
thereof not deposited into the Series 2003-2 Distribution Account) shall be
applied by the Indenture Trustee in accordance with Section 5.4(d) of the
Base Indenture;

 

(x)  to the Series 2003-2
Reserve Account, to the extent that a Series 2003-2 Liquid Credit Enhancement
Deficiency exists or, on any Payment Date immediately succeeding a Monthly
Period falling in the Series 2003-2 Amortization Period, to the extent that a
Series 2003-2 Allocated Asset Amount Deficiency exists, an amount equal to the
greater of such deficiencies;

 

(xi)  to the Series 2003-2 Yield
Supplement Account, to the extent that a Series 2003-2 Yield Supplement
Deficiency exists (or, will exist after giving effect to any reduction in the
Class X 1999-1B Invested Amount on such Payment Date), an amount equal to such
deficiency;

 

(xii)  if VMS is not the
Servicer, to the Servicer, an amount equal to any Series 2003-2 Supplemental
Servicing Fee for the Series 2003-2 Interest Period ending on such Payment
Date;

 

(xiii)  if any Series 2003-2
Preferred Membership Interests are issued and outstanding, to the Series 2003-2
Preferred Member Distribution Account, an amount equal to the balance remaining
in the Series 2003-2 Settlement Collection Subaccount;

 

(xiv)  if no Series 2003-2
Preferred Membership Interests are issued and outstanding, to, or at the
written direction of, the Issuer, an amount equal to the balance remaining in
the Series 2003-2 Settlement Collection Subaccount.

 

Section 5A.5                            Payment
of Monthly Interest Payment.

 

On each Payment Date, based solely on the information contained in the
Monthly Settlement Statement with respect to the Series 2003-2 Investor Notes,
the Indenture Trustee shall, in accordance with Section 6.1 of the
Base Indenture, distribute to the Series 2003-2 Investor Noteholders, from the
Series 2003-2 Distribution Account the Monthly Interest Payment to the extent
of the amount deposited in the Series 2003-2 Distribution Account for the
payment of interest pursuant to Section 5A.4(c)(v).

 

Section 5A.6                            Payment
of Principal.

 

(a)  The principal amount of
each Class of the Series 2003-2 Investor Notes shall be due and payable on the
Final Maturity Date with respect to such Class.

 

(b)  On each Payment Date on
which a deposit is made to the Series 2003-2 Distribution Account pursuant to Section 5A.4(c)(ix)
or an amount is deposited in the Series 2003-2 Distribution Account pursuant to
Section 5A.4(b)(ii), based solely on the information

 

24

 

contained in
the Monthly Settlement Statement with respect to Series 2003-2 Investor Notes,
the Indenture Trustee shall, in accordance with Section 6.1 of the
Base Indenture, distribute during the Series 2003-2 Amortization Period, pro
rata to each Class A-1 Investor Noteholder from the Series 2003-2
Distribution Account the amount deposited therein pursuant to Section 5A.4(c)(ix)
and Section 5A.4(b)(ii) in order to pay the Class A-1 Invested
Amount, and thereafter pro  rata to each Class A-2 Investor
Noteholder from the Series 2003-2 Distribution Account the amount deposited
therein pursuant to Section 5A.4(c)(ix) and Section 5A.4(b)(ii)
in order to pay the Class A-2 Invested Amount; provided
however that on any Payment Date falling after the occurrence of an
Amortization Event resulting from the occurrence of an Event of Default
described in Section 9.1(a), (b) or (f) of the Base
Indenture the Indenture Trustee shall distribute pro  rata to each
Series 2003-2 Investor Noteholder from the Series 2003-2 Distribution Account
the amounts deposited therein pursuant to Section 5A.4(c)(ix) and Section 5A.4(b)(ii)
in order to pay the Class A-1 Invested Amount and the Class A-2 Invested
Amount.

 

(c)  The Indenture Trustee shall
notify the Person in whose name a Series 2003-2 Investor Note is registered at
the close of business on the Record Date preceding the Payment Date on which
the Issuer expects that the final installment of principal of and interest on
such Series 2003-2 Investor Note will be paid. 
Such notice shall be made at the expense of the Administrator and shall
be mailed within three (3) Business Days of receipt of a Monthly Settlement
Statement indicating that such final payment will be made and shall specify
that such final installment will be payable only upon presentation and
surrender of such Series 2003-2 Investor Note and shall specify the place where
such Series 2003-2 Investor Note may be presented and surrendered for payment
of such installment.  Notices in
connection with redemptions of Series 2003-2 Investor Notes shall be
(i) transmitted by facsimile to Series 2003-2 Investor Noteholders holding
Global Notes and (ii) sent by registered mailed to Series 2003-2 Investor
Noteholders holding Definitive Notes and shall specify that such final
installment will be payable only upon presentation and surrender of such Series
2003-2 Investor Note and shall specify the place where such Series 2003-2 Investor
Note may be presented and surrendered for payment of such installment.

 

Section 5A.7                            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.7, 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

 

25

 

confirmation of any such direction and (ii) written confirmation of all
information used by the Administrator in giving any such direction.

 

Section 5A.8                            Series
2003-2 Reserve Account.

 

(a)  The Indenture Trustee shall
establish and maintain in the name of the Indenture Trustee for the benefit of
the Series 2003-2 Investor Noteholders an account (the “Series 2003-2
Reserve Account”), bearing a designation clearly indicating that the funds
deposited therein are held for the benefit of the Series 2003-2 Investor Noteholders.  The Series 2003-2 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 reduction, establish a new Series 2003-2
Reserve Account that is an Eligible Deposit Account. If the Indenture Trustee
establishes a new Series 2003-2 Reserve Account, it shall transfer all cash and
investments from the non-qualifying Series 2003-2 Reserve Account into the new
Series 2003-2 Reserve Account. Initially, the Series 2003-2 Reserve Account
will be established with JPMorgan Chase Bank.

 

(b)  The Issuer may instruct the
institution maintaining the Series 2003-2 Reserve Account in writing to invest
funds on deposit in the Series 2003-2 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. 
All such Permitted Investments will be credited to the Series 2003-2
Reserve Account and any such Permitted Investments that constitute (i)  Physical Property (and that is not either a
United States Security Entitlement or a Security Entitlement) shall be
delivered to the Indenture Trustee in accordance with paragraph (a) of the
definition of “Delivery” and shall be held by the Indenture Trustee pending
maturity or disposition; (ii) United States Security Entitlements or Security
Entitlements shall be Controlled by the Indenture Trustee pending maturity or
disposition; and (iii) Uncertificated Securities (and not United States
Security Entitlements) shall be delivered to the Indenture Trustee in accordance
with paragraph (b) of the definition of “Delivery” and shall be maintained by
the Indenture Trustee pending maturity or disposition.  The Indenture Trustee shall, at the
direction and expense of the Administrator, take such additional action as is
required to maintain the Indenture Trustee’s security interest in the Permitted
Investments credited to the Series 2003-2 Reserve Account.  In absence of written direction as provided
hereunder, funds on deposit in the Series 2003-2 Reserve Account shall remain
uninvested.

 

(c)  All interest and earnings
(net of losses and investment expenses) paid on funds on deposit in the Series
2003-2 Reserve Account shall be deemed to be on deposit and available for
distribution.

 

(d)  If there is a Series 2003-2
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 2003-2 Reserve Account and deposit in the Series
2003-2 Preferred Member Distribution Account, and the Indenture Trustee shall
withdraw from the Series 2003-2 Reserve Account and deposit in the Series
2003-2 Preferred Member Distribution Account, so long as no Series 2003-2
Allocated Asset Amount Deficiency exists or would result

 

26

 

therefrom, an
amount up to the lesser of (i) such Series 2003-2 Reserve Account Surplus on
such Business Day and (ii) the Series 2003-2 Reserve Account Amount on such
Business Day.

 

(e)  Amounts will be withdrawn
from the Series 2003-2 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 2003-2 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 2003-2 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 2003-2 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 2003-2 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 2003-2 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 2003-2
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 shall possess all right, title and interest
in all funds on deposit from time to time in the Series 2003-2 Reserve Account
and in all proceeds thereof and shall be the only person authorized to
originate entitlement orders in respect of the Series 2003-2 Reserve
Account.  The Indenture Trustee and the
Series 2003-2 Investor Noteholders shall have no interest in any amounts
withdrawn from the Series 2003-2 Reserve Account and deposited in the Series
2003-2 Preferred Member Distribution Account.

 

(g)  On the first Payment Date
after the Series 2003-2 Note Termination Date on which the sum of (a) the
Series 2003-2 Reserve Account Amount, (b) the Series 2003-2 Yield Supplement
Account Amount and (c) the amount available to be deposited in the Series
2003-2 Preferred Member Distribution Account in accordance with Section 5A.4(c)(ix)
is at least equal to the aggregate stated liquidation preference of the Series
2003-2 Preferred Membership Interests and on any Payment Date thereafter, the
Indenture Trustee, acting in accordance with the written instructions of the
Administrator shall withdraw from the Series 2003-2 Reserve Account all amounts
on deposit therein for deposit in the Series 2003-2 Preferred Member
Distribution Account.

 

Section 5A.9                            Series
2003-2 Yield Supplement Account.

 

(a)  The Indenture Trustee shall
establish and maintain in the name of the Indenture Trustee for the benefit of
the Series 2003-2 Investor Noteholders an account (the “Series 2003-2 Yield
Supplement Account”), bearing a designation clearly indicating that the
funds deposited therein are held for the benefit of the Series 2003-2 Investor
Noteholders.  The Series 2003-2 Yield
Supplement 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
reduction, establish a new Series 2003-2 Yield Supplement Account that is an
Eligible Deposit Account. If the Indenture Trustee establishes a

 

27

 

new Series
2003-2 Yield Supplement Account, it shall transfer all cash and investments
from the non-qualifying Series 2003-2 Yield Supplement Account into the new
Series 2003-2 Yield Supplement Account. Initially, the Series 2003-2 Yield
Supplement Account will be established with JPMorgan Chase Bank.

 

(b)  The Issuer may instruct the
institution maintaining the Series 2003-2 Yield Supplement Account in writing
to invest funds on deposit in the Series 2003-2 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.  All such Permitted Investments will be
credited to the Series 2003-2 Yield Supplement Account and any such Permitted
Investments that constitute (i) 
Physical Property (and that is not either a United States Security
Entitlement or a Security Entitlement) shall be delivered to the Indenture
Trustee in accordance with paragraph (a) of the definition of “Delivery” and
shall be held by the Indenture Trustee pending maturity or disposition; (ii)
United States Security Entitlements or Security Entitlements shall be
Controlled by the Indenture Trustee pending maturity or disposition; and (iii)
Uncertificated Securities (and not United States Security Entitlements) shall
be delivered to the Indenture Trustee in accordance with paragraph (b) of the
definition of “Delivery” and shall be maintained by the Indenture Trustee
pending maturity or disposition.  The
Indenture Trustee shall, at the direction and expense of the Administrator,
take such additional action as is required to maintain the Indenture Trustee’s
security interest in the Permitted Investments credited to the Series 2003-2
Yield Supplement Account.  In absence of
written direction as provided hereunder, funds on deposit in the Series 2003-2
Yield Supplement Account shall remain uninvested.

 

(c)  All interest and earnings
(net of losses and investment expenses) paid on funds on deposit in the Series
2003-2 Yield Supplement Account shall be deemed to be on deposit and available
for distribution.

 

(d)  If there is a Series 2003-2
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 2003-2 Yield Supplement Account and deposit
in the Series 2003-2 Preferred Member Distribution Account, and the Indenture
Trustee shall withdraw from the Series 2003-2 Yield Supplement Account and
deposit in the Series 2003-2 Preferred Member Distribution Account an amount up
to the lesser of (i) such Series 2003-2 Yield Supplement Account Surplus on
such Business Day and (ii) the Series 2003-2 Yield Supplement Account Amount on
such Business Day.

 

(e)  Amounts will be withdrawn
from the Series 2003-2 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 2003-2 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 2003-2 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 2003-2 Yield Supplement
Account, including any security entitlement thereto; (ii) all funds on deposit
therein

 

28

 

from time to
time; (iii) all certificates and instruments, if any, representing or
evidencing any or all of the Series 2003-2 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 2003-2 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
2003-2 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 shall possess all
right, title and interest in all funds on deposit from time to time in the
Series 2003-2 Yield Supplement Account and in all proceeds thereof and shall be
the only person authorized to originate entitlement orders in respect of the
Series 2003-2 Yield Supplement Account. 
The Indenture Trustee and the Series 2003-2 Investor Noteholders shall
have no interest in any amounts withdrawn from the Series 2003-2 Yield
Supplement Account and deposited in the Series 2003-2 Preferred Member
Distribution Account.

 

(g)  On the first Payment Date
after the Series 2003-2 Note Termination Date on which the sum of (a) the
Series 2003-2 Reserve Account Amount, (b) the Series 2003-2 Yield Supplement
Account Amount and (c) the amount available to be deposited in the Series
2003-2 Preferred Member Distribution Account in accordance with Section 5A.4(c)(ix)
is at least equal to the aggregate stated liquidation preference of the Series
2003-2 Preferred Membership Interests and on any Payment Date thereafter, the
Indenture Trustee, acting in accordance with the written instructions of the
Administrator shall withdraw from the Series 2003-2 Yield Supplement Account
all amounts on deposit therein for deposit in the Series 2003-2 Preferred
Member Distribution Account.

 

Section 5A.10                      Series
2003-2 Distribution Account.

 

(a)  The Indenture Trustee shall
establish and maintain in the name of the Indenture Trustee for the benefit of
the Series 2003-2 Investor Noteholders an account (the “Series 2003-2
Distribution Account”), bearing a designation clearly indicating that the
funds deposited therein are held for the benefit of the Series 2003-2 Investor
Noteholders.  The Series 2003-2
Distribution 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
reduction, establish a new Series 2003-2 Distribution Account that is an
Eligible Deposit Account. If the Indenture Trustee establishes a new Series
2003-2 Distribution Account, it shall transfer all cash and investments from
the non-qualifying Series 2003-2 Distribution Account into the new Series
2003-2 Distribution Account. Initially, the Series 2003-2 Distribution Account
will be established with JPMorgan Chase Bank.

 

(b)  In order to secure and
provide for the repayment and payment of the Issuer Obligations with respect to
the Series 2003-2 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 2003-2 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 2003-2 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

 

29

 

all of the
Series 2003-2 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 2003-2 Distribution Account or the funds on deposit
therein from time to time; and (v) all proceeds of any and all of the
foregoing, including, without limitation, cash.  The Indenture Trustee shall possess all right, title and interest
in all funds on deposit from time to time in the Series 2003-2 Distribution Account
and in all proceeds thereof and shall be the only person authorized to
originate entitlement orders in respect of the Series 2003-2 Distribution
Account.

 

Section 5A.11                      Lease
Rate Caps.

 

(a)  The Issuer shall have
obtained on the Series 2003-2 Closing Date and shall thereafter maintain one or
more interest rate caps, each from a Series 2003-2 Eligible Counterparty,
having, in the aggregate, a notional amount on the Series 2003-2 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 2003-2 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 0.705% 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 2003-2 Closing Date, the Issuer shall have obtained and shall
thereafter maintain an interest rate cap from a Series 2003-2 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
0.705% per annum.

 

(c)  The Issuer may obtain an
interest rate cap from a Series 2003-2 Eligible Counterparty in respect of any
Fixed Rate Lease allocated to the Lease SUBI Portfolio that was not a Fixed
Rate Lease when initially allocated to the Lease SUBI Portfolio or on the
Series 2003-2 Closing Date having a notional amount equal to the Lease Balance
of such Fixed Rate Lease as of the last day of the Monthly Period immediately
preceding the date as of which such Lease became a 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

 

30

 

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 0.705% per annum.  If the Issuer obtains an interest rate cap
in respect of any Fixed Rate Lease satisfying the requirements of this
Section 5A.11(c), it shall maintain such interest rate cap.

 

(d)  The Issuer shall have
obtained on the Series 2003-2 Closing Date and shall thereafter maintain the
Series 2003-2 Required Lease Rate Cap.

 

(e)  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.11 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 2003-2 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 and the Rating Agency Condition is
satisfied with respect to such arrangement.  The Issuer will not permit any interest rate cap required to be
obtained and maintained by the Issuer pursuant to this Section 5A.11
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.11.

 

(f)  In order to secure and
provide for the repayment and payment of the Issuer Obligations with respect to
the Series 2003-2 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 2003-2 Investor Noteholders, all of the
Issuer’s right, title and interest in and to the Series 2003-2 Lease Rate Cap
and any and all payments thereunder and any and all proceeds thereof (including
as a result of the termination thereof).

 

ARTICLE III

AMORTIZATION EVENTS

 

If any one of the following events shall occur with respect to the
Series 2003-2 Investor Notes:

 

(a)  the Series 2003-2 Reserve
Account shall have become subject to an injunction, estoppel or other stay or a
Lien (other than a Permitted Lien);

 

(b)  the Series 2003-2 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 2003-2 Liquid
Credit Enhancement Deficiency shall occur and continue for at least two
Business Days;

 

(d)  a Series 2003-2 Allocated
Asset Amount Deficiency shall occur and continue for at least two Business
Days;

 

31

 

(e)  a Series 2003-2 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 7.00%;

 

(i)  the failure on the part of
the Issuer to declare and pay dividends on the Series 2003-2 Senior Preferred
Membership Interests or the Series 2003-2 Junior Preferred Membership Interests
on any Payment Date in accordance with their terms;

 

(j)  any Servicer Termination
Event shall occur;

 

(k)  any Termination Event shall
occur;

 

(l)  an Event of Default with
respect to the Series 2003-2 Investor Notes shall occur;

 

(m)  there is at least
$10,000,000 on deposit in the Series 2003-2 Principal Collection Subaccount on
two consecutive Settlement Dates during the Series 2003-2 Revolving Period;

 

(n)  an Insolvency Event shall
occur with respect to SPV, the Origination Trust, Avis, PHH, Cendant or VMS;

 

(o)  all principal and interest
of the Class A-1 Investor Notes is not paid in full on or before the Class A-1
Maturity Date or all principal and interest of the Class A-2 Investor Notes is
not paid in full on or before the Class A-2 Maturity Date;

 

(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, which failure continues unremedied for a period of 45 days after
there shall have been given to the Issuer by the Indenture Trustee or the
Issuer and the Indenture Trustee by the Series 2003-2 Required Investor
Noteholders, 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 45 days after

 

32

 

there shall
have been given to the Issuer by the Indenture Trustee or the Issuer and the
Indenture Trustee by the Series 2003-2 Required Investor Noteholders, written
notice thereof;

 

(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 Cendant, PHH, VMS, the Origination Trust, SPV 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 2003-2 Investor Notes only, if after the applicable grace period, either
the Indenture Trustee or Series 2003-2 Investor Noteholders holding a Majority
in Interest of the Series 2003-2 Investor Notes, declare that an Amortization
Event has occurred with respect to the Series 2003-2 Investor Notes.  In
the case of any event described in clauses (a) through (o) above, an
Amortization Event with respect to the Series 2003-2 Investor Notes will be
deemed to have occurred without notice or other action on the part of the
Indenture Trustee or the Series 2003-2 Investor Noteholders.

 

ARTICLE IV

OPTIONAL PREPAYMENT

 

The Issuer shall have the option to prepay the Series 2003-2 Investor
Notes in full on any Payment Date after the Payment Date in
June 2005.  The Issuer shall give
the Indenture Trustee at least ten Business Days’ prior written notice of the
Payment Date on which the Issuer intends to exercise such option to prepay (the
“Prepayment Date”).  The
prepayment price for the Series 2003-2 Investor Notes shall equal the aggregate
outstanding principal balance of the Series 2003-2 Investor Notes (determined
after giving effect to any payments of principal and interest on such Payment
Date), plus accrued and unpaid interest on such outstanding principal
balance.  Not later than 11:00 a.m., New
York City time, on such Prepayment Date, the Issuer shall deposit in the Series
2003-2 Distribution Account an amount equal to the prepayment price in
immediately available funds.  The funds
deposited into the Series 2003-2 Distribution Account

 

33

 

will be paid by the Indenture Trustee to the Series 2003-2 Investor
Noteholders on such Prepayment Date.

 

ARTICLE V

SERVICING AND ADMINISTRATOR FEES

 

Section 5.1  Servicing Fees.  A
periodic servicing fee (the “Series 2003-2 Basic Servicing Fee”) shall
be payable to the Servicer on each Payment Date for the Series 2003-2 Interest
Period ending on such Payment Date in an amount equal to the product of (a)
0.215% (the “Series Servicing Fee Percentage”) times (b) the Series 2003-2
Allocated Adjusted Aggregate Unit Balance as of the first day of such Series
2003-2 Interest Period times (c) the number of days in such Series 2003-2
Interest 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 2003-2 Basic Servicing Fee and the additional servicing fee
payable to the Servicer hereunder (the “Series 2003-2 Supplemental Servicing
Fee”) for each Series 2003-2 Interest Period equals 110% of the costs to
the successor Servicer of servicing the portion of the Lease SUBI Portfolio
allocated to Series 2003-2 during such Series 2003-2 Interest Period.  For this purpose, the portion of the Lease
SUBI Portfolio allocated to Series 2003-2 for each Series 2003-2 Interest
Period shall equal the average Series 2003-2 Invested Percentage during such
Series 2003-2 Interest Period.  The
Series 2003-2 Basic Servicing Fee and any Series 2003-2 Supplemental Servicing
Fee shall be payable to the Servicer on each Payment Date pursuant to
Section 5A.4(c).

 

Section 5.2  Administrator Fee.  A
periodic fee (the “Series 2003-2 Administrator Fee”) shall be payable to
the Administrator on each Payment Date for the Series 2003-2 Interest Period
ending on such Payment Date in an amount equal to the product of (a) 0.01%
times (b) the Series 2003-2 Allocated Adjusted Aggregate Unit Balance as of the
first day of the immediately preceding Monthly Period times (c) the number of
days in such Series 2003-2 Interest Period divided by 365 (or 366, as applicable)
days.  The Series 2003-2 Administrator
Fee shall be payable to the Administrator on each Payment Date pursuant to Section 5A.4(c)(vii).

 

ARTICLE VI

FORM OF SERIES 2003-2 NOTES

 

Section 6.1  Initial Issuance of Series 2003-2
Investor Notes.

 

The Series 2003-2 Investor Notes are being offered and sold by the
Issuer in a registered public offering pursuant to an Underwriting Agreement,
dated November 7, 2003, among the Issuer, VMS, PHH and J.P. Morgan
Securities Inc. and Banc of America Securities LLC, as the representatives of the
underwriters.

 

Section 6.2  Global Notes.

 

The Series 2003-2 Investor Notes of each Class will be issued in the
form of one or more Global Notes in fully registered form, without coupons,
substantially in the form set

 

34

 

forth in Exhibits A-1 and A-2, registered in the name of Cede &
Co., as nominee of DTC, and deposited with JPMorgan Chase, as custodian of DTC
(collectively, the “Series 2003-2 Global Notes”).

 

The Series 2003-2 Global Notes shall bear the following legends:

 

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST
COMPANY (“DTC”), A NEW YORK CORPORATION, 55 WATER STREET, NEW YORK, NEW YORK
10004, OR A NOMINEE THEREOF.  THIS NOTE
MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO
TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY
PERSON OTHER THAN DTC OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE.

 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO
THE ISSUER OR THE TRANSFER AGENT AND REGISTRAR, AND ANY NOTE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC, AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL BECAUSE THE REGISTERED OWNER, CEDE & CO., HAS AN
INTEREST HEREIN.

 

Section 6.3  Definitive  Notes.

 

No Series 2003-2 Note Owner will receive a Definitive Note representing
such Series 2003-2 Note Owner’s interest in the Series 2003-2 Investor Notes
other than in accordance with Section 2.11 of the Base Indenture.

 

ARTICLE VII

INFORMATION

 

The Issuer hereby agrees to provide to the Indenture Trustee and each
provider of the Series 2003-2 Required Lease Rate Cap, on each Determination
Date, a Monthly Settlement Statement, substantially in the form of Exhibit B,
setting forth as of the last day of the most recent Monthly Period and for such
Monthly Period the information set forth therein.  The Indenture Trustee shall provide to the Series 2003-2 Investor
Noteholders, or their designated agent, copies of each Monthly Settlement
Statement.

 

35

 

ARTICLE VIII

 

MISCELLANEOUS

 

Section 8.1  Ratification of Indenture.  As
supplemented by this Indenture Supplement, the Indenture is in all respects
ratified and confirmed and the Indenture as so supplemented by this Indenture
Supplement shall be read, taken and construed as one and the same instrument.

 

Section 8.2  Obligations Unaffected.  The obligations of the Issuer to the Series
2003-2 Investor Noteholders under this Indenture Supplement shall not be
affected by reason of any invalidity, illegality or irregularity of any of the
SUBI Certificates, the Sold Units or the Fleet Receivables.

 

Section 8.3  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.

 

Section 8.4  Further Assurances.  Each of the Issuer and the Indenture Trustee
agrees, at the Administrator’s expense, 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 Series 2003-2 Required Investor Noteholders more
fully to effect the purposes of this Indenture Supplement and the sale of the
Series 2003-2 Investor Notes hereunder. 
The Issuer hereby authorizes the Indenture Trustee to file any financing
statements or similar documents or notices or continuation statements relating
to the Series 2003-2 Collateral under the provisions of the UCC or similar
legislation of any applicable jurisdiction.

 

Section 8.5  Exhibits.  The following exhibits attached hereto supplement the exhibits
included in the Base Indenture:

 

Exhibit A-1:                                  Form
of Class A-1 Note

Exhibit A-2:                                  Form
of Class A-2 Note

Exhibit B:                                              Form
of Monthly Settlement Statement

Exhibit C:                                              Form
of Series 2003-2 Lease Rate Cap

 

Section 8.6  No Waiver; Cumulative Remedies.  No failure to exercise and no delay in
exercising, on the part of the Indenture Trustee, 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 8.7  Amendments.  (a)  This Indenture
Supplement may be amended in writing from time to time in accordance with the
terms of the Base Indenture.

 

36

 

(b)  No amendment specified in this Indenture Supplement
as requiring satisfaction of the Rating Agency Condition shall be effective
until the Rating Agency Condition is satisfied with respect thereto.

 

(c)  The Issuer reserves the right, without any
consent or other action of the Series 2003-2 Investor Noteholders, to consent
to the termination of the ARAC Guaranty.

 

Section 8.8  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 8.9  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 8.10  No Bankruptcy Petition.  (a) 
By acquiring a Series 2003-2 Investor Note or an interest therein, each
Series 2003-2 Investor Noteholder and each Series 2003-2 Investor Note Owner
hereby covenants and agrees that it will not institute against, or join any
other Person in instituting against, the Issuer any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other similar
proceedings under any federal or state bankruptcy or similar law.

 

(a)  By acquiring a Series
2003-2 Investor Note or an interest therein, each Series 2003-2 Investor
Noteholder and each Series 2003-2 Investor Note Owner and the Issuer and the
Indenture Trustee 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, 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 bankruptcy,
reorganization, arrangement, insolvency or liquidation proceeding or other
proceedings under any federal or state bankruptcy or similar law.

 

Section 8.11  SUBIs.  By acquiring a Series 2003-2 Investor Note or an interest
therein, each Series 2003-2 Investor Noteholder and each Series 2003-2 Investor
Note Owner and the Issuer 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,

 

37

 

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 8.12  Notice to Rating Agencies.  The Indenture Trustee shall provide to each
Rating Agency a copy of each notice delivered to, or required to be provided
by, the Indenture Trustee pursuant to this Indenture Supplement or any other
Transaction Document.

 

Section 8.13  Conflict of Instructions.  In the event the Issuer and the
Administrator shall have delivered conflicting instructions to the Indenture
Trustee to take or refrain from taking action hereunder, the Indenture Trustee
shall follow the instructions of the Issuer.

 

38

 

IN WITNESS WHEREOF, the Issuer 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/ Joseph W. Weikel

  
	
   

  	
   

  	
  Name:

  	
  Joseph W. Weikel

  
	
   

  	
   

  	
  Title: 

  	
  Senior Vice President, General Counsel

  and Assistant Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK,

     as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Wen Hao Wang

  
	
   

  	
   

  	
  Name: 

  	
  Wen Hao Wang

  
	
   

  	
   

  	
  Title:

  	
  Assistant Vice President

  

 

 

[2003-2 Indenture Supplement]

 

39

 

EXHIBIT A-1

TO SERIES 2003-2

INDENTURE SUPPLEMENT

 

FORM OF GLOBAL CLASS A-1 INVESTOR NOTE

 

	
  REGISTERED

  	
   

  	
  $230,000,000

  
	
  No. R-001

  	
   

  	
   

  

 

SEE REVERSE FOR CERTAIN CONDITIONS

 

CUSIP (CINS)
NO. 165182AH9

ISIN NO. US165182AH93

 

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING
OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
DEPOSITORY TRUST COMPANY (“DTC”), A NEW YORK CORPORATION, 55 WATER STREET, NEW
YORK, NEW YORK 10004, OR A NOMINEE THEREOF. 
THIS NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY
REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY BE REGISTERED,
IN THE NAME OF ANY PERSON OTHER THAN DTC OR A NOMINEE THEREOF, EXCEPT IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

UNLESS THIS NOTE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC TO THE ISSUER OR THE TRANSFER AGENT AND
REGISTRAR, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, AND
ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC, ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL BECAUSE THE
REGISTERED OWNER, CEDE & CO., HAS AN INTEREST HEREIN.

 

THE PRINCIPAL OF THIS CLASS A-1 INVESTOR NOTE
IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING
PRINCIPAL AMOUNT OF THIS CLASS A-1 INVESTOR NOTE AT ANY TIME MAY BE LESS THAN
THE AMOUNT SHOWN ON THE FACE HEREOF.

 

CHESAPEAKE FUNDING LLC

 

SERIES 2003-2 FLOATING RATE CALLABLE ASSET BACKED INVESTOR NOTES,

CLASS A-1

 

A-1

 

CHESAPEAKE FUNDING LLC, a limited liability
company formed under the laws of the State of Delaware (herein referred to as
the “Issuer”), for value received, hereby promises to pay to Cede &
Co., or registered assigns, the principal sum of Two Hundred Thirty Million
Dollars, which amount shall be payable in the amounts and at the times set
forth in the Indenture described herein, provided, however, that the entire
unpaid principal amount of this Class A-1 Investor Note shall be due on the
Class A-1 Final Maturity Date. However, principal with respect to the Class A-1
Investor Notes may be paid earlier under certain limited circumstances
described in the Indenture.  The Issuer
will pay interest on this Class A-1 Investor Note for each Series 2003-2
Interest Period, in accordance with the terms of the Indenture, at the Class
A-1 Note Rate for such Interest Period. 
Each “Series 2003-2 Interest Period” will be 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 2003-2 Interest Period shall commence on and include the Series
2003-2 Closing Date and end on and include December 7, 2003.  Such principal of and interest on this Class
A-1 Investor Note shall be paid in the manner specified on the reverse hereof
and in the Indenture.

 

The principal of and interest on this Class
A-1 Investor Note are payable in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts. All payments made by the Issuer with respect to this Class A-1
Investor Note shall be applied as provided in the Indenture.  This Class A-1 Investor Note does not
represent an interest in, or an obligation of, PHH Vehicle Management Services,
LLC (“VMS”) or any affiliate of VMS other than the Issuer.

 

Reference is made to the further provisions
of this Class A-1 Investor Note set forth on the reverse hereof, which shall
have the same effect as though fully set forth on the face of this Class A-1
Investor Note. Although a summary of certain provisions of the Indenture is set
forth below and on the reverse hereof and made a part hereof, this Class A-1
Investor Note does not purport to summarize the Indenture and reference is made
to the Indenture for information with respect to the interests, rights,
benefits, obligations, proceeds and duties evidenced hereby and the rights,
duties and obligations of the Issuer and the Indenture Trustee. A copy of the
Indenture may be requested from the Indenture Trustee by writing to the
Indenture Trustee at:  JPMorgan Chase
Bank, 4 New York Plaza, 6th Floor, New York, New York, 10004,
Attention: Institutional Trust Services. 
To the extent not defined herein, the capitalized terms used herein have
the meanings ascribed to them in the Indenture.

 

Unless the certificate of authentication
hereon has been executed by the Indenture Trustee whose name appears below by
manual signature, this Class A-1 Investor Note shall not be entitled to any
benefit under the Indenture referred to on the reverse hereof, or be valid or
obligatory for any purpose.

 

A-2

 

IN WITNESS WHEREOF, the Issuer has caused
this instrument to be signed, manually or in facsimile, by its Authorized
Officer.

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CHESAPEAKE FUNDING LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Class A-1 Investor Notes issued under the within-mentioned
Indenture.

 

	
   

  	
  JPMORGAN CHASE BANK, as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  	
   

  

 

A-3

 

[REVERSE OF CLASS A-1 INVESTOR NOTE]

 

This Class A-1 Investor Note is one of a duly
authorized issue of Class A-1 Investor Notes of the Issuer designated its
Series 2003-2 Floating Rate Asset Backed Investor Notes (herein called the “Class
A-1 Investor Notes”), all issued under (i) a Base Indenture dated as of
June 30, 1999 (such Base Indenture, as amended or modified, is herein
called the “Base Indenture”), between the Issuer and JPMorgan Chase Bank
(formerly known as The Chase Manhattan Bank), as Indenture Trustee (the “Indenture
Trustee”, which term includes any successor Indenture Trustee under the Base
Indenture), and (ii) a Series 2003-2 Indenture Supplement dated as of
November 19, 2003 (the “Series 2003-2 Indenture Supplement”)
between the Issuer and the Indenture Trustee. The Base Indenture and the Series
2003-2 Supplement are referred to herein as the “Indenture”. The Class
A-1 Investor Notes are subject to all terms of the Indenture. All terms used in
this Class A-1 Investor Note that are defined in the Indenture, as
supplemented, modified or amended, shall have the meanings assigned to them in or
pursuant to the Indenture, as so supplemented, modified or amended.

 

The Class A-1 Investor Notes are and will be
equally and ratably secured by the Series 2003-2 Collateral pledged as security
therefor as provided in the Indenture and the Series 2003-2 Indenture
Supplement.

 

Principal of the Class A-1 Investor Notes
will be payable on each Payment Date specified in and in the amounts described
in the Indenture. “Payment Date” means the 7th day of each month, or if
such date is not a Business Day, the next succeeding Business Day, commencing
December 8, 2003.

 

The entire unpaid principal amount of this
Class A-1 Investor Note shall be due and payable on the Class A-1 Final
Maturity Date. Notwithstanding the foregoing, principal on the Class A-1
Investor Notes will be paid earlier during the Series 2003-2 Amortization
Period as described in the Indenture. All principal payments on the Class A-1
Investor Notes shall be made pro rata to the Class A-1 Investor Noteholders
entitled thereto.

 

The Issuer will have the option to prepay the
Series 2003-2 Investor Notes, in whole but not in part, on any Payment Date
after the Payment Date in June 2005. 
The prepayment price for the Series 2003-2 Investor Notes will be equal
to the amount set forth in the Indenture.

 

Interest will accrue on this Class A-1
Investor Notes for each Series 2003-2 Interest Period at a rate equal to (i)
with respect to the initial Series 2003-2 Interest Period, 1.32% per annum and
(ii) with respect to each Series 2003-2 Interest Period thereafter, a rate per
annum equal to One-Month LIBOR for such Series 2003-2 Interest Period plus
0.20% per annum (the “Class A-1 Note Rate”).  “One-Month LIBOR” means, for each Series 2003-2 Interest
Period, the rate per annum determined on the related LIBOR Determination Date
by the Calculation Agent to be the rate for Dollar deposits having a maturity
equal to one month that appears on Telerate Page 3750 at approximately 11:00
a.m., London time, on such LIBOR Determination Date; provided, however, that if such rate does not appear on
Telerate Page 3750, One-Month LIBOR will mean, for such 2003-2 Interest Period,
the rate per annum equal to the arithmetic mean (rounded to the nearest
one-one-hundred-thousandth of one percent) of the rates

 

A-4

 

quoted by the Reference Banks
to the Calculation Agent as the rates at which deposits in Dollars are offered
by the Reference Banks at approximately 11:00 a.m., London time, on the LIBOR
Determination Date to prime banks in the London interbank market for a period
equal to one month; provided, further,
that if fewer than two quotations are provided as requested by the Reference
Banks, “One-Month LIBOR” for such Series 2003-2 Interest Period will mean the
arithmetic mean (rounded to the nearest one-one-hundred-thousandth of one
percent) of the rates quoted by major banks in New York, New York selected by
the Calculation Agent, at approximately 10:00 a.m., New York City time, on the
first day of such Series 2003-2 Interest Period for loans in Dollars to leading
European banks for a period equal to one month; provided, finally, that if no such quotes are provided,
“One-Month LIBOR” for such Series 2003-2 Interest Period will mean One-Month
LIBOR as in effect with respect to the preceding Series 2003-2 Interest Period.

 

The Issuer shall pay interest on overdue
installments of interest at the Class A-1 Note Rate to the extent lawful.

 

As provided in the Indenture and subject to
certain limitations set forth therein, the transfer of this Class A-1 Investor
Note may be registered on the Note Register upon surrender of this Class A-1
Investor Note for registration of transfer at the office or agency designated
by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Indenture Trustee
duly executed by, the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Class A-1 Investor Notes of authorized
denominations in the same aggregate principal amount will be issued to the
designated transferee or transferees. No service charge will be charged for any
registration of transfer or exchange of this Class A-1 Investor Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such
registration of transfer or exchange.

 

By acquiring a Class A-1 Investor Note or an
interest therein, each Class A-1 Investor Noteholder and each Class A-1 Investor
Note Owner and the Issuer and the Indenture Trustee 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, 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 bankruptcy, reorganization, arrangement, insolvency or
liquidation proceeding or other proceedings under any federal or state
bankruptcy or similar law.

 

Each Class A-1 Investor Noteholder, by
acceptance of a Class A-1 Investor Note or, in the case of a Class A-1 Investor
Note Owner, a beneficial interest in a Class A-1 Investor Note, 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

 

A-5

 

and expenses incurred,
contracted for or otherwise existing with respect to any other SUBI (used in
this paragraph as defined in the Origination Trust Agreement), any other SUBI
Portfolio (used in this paragraph 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 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.

 

Each Class A-1 Investor Noteholder or Class
A-1 Investor Note Owner, by acceptance of a Class A-1 Investor Note or, in the
case of a Class A-1 Investor Note Owner, a beneficial interest in a Class A-1
Investor Note, covenants and agrees that by accepting the benefits of the
Indenture that such Class A-1 Investor Noteholder or Class A-1 Investor Note
Owner will not institute against, or join with any other Person in instituting
against, the Issuer any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other proceedings, under any Federal or state
bankruptcy or similar law.

 

It is the intent of the Issuer, each Class
A-1 Investor Noteholder and each Class A-1 Investor Note Owner that, for
Federal, state and local income and franchise tax purposes only, the Class A-1
Investor Notes will evidence indebtedness of the Issuer secured by the Series
2003-2 Collateral.  Each Class A-1
Investor Noteholder and each Class A-1 Investor Note Owner, by the acceptance
of this Class A-1 Investor Note, agrees to treat this Class A-1 Investor Note
for purposes of Federal, state and local income and franchise taxes and any
other tax imposed on or measured by income, as indebtedness of the Issuer.

 

The Indenture permits, with certain
exceptions as therein provided, the amendment thereof and the modification of
the rights and obligations of the Issuer and the rights of the Holders of the Series 2003-2 Investor Notes under the
Indenture at any time by the Issuer with the consent of the Holders of a
Majority in Interest of the Series 2003-2 Investor Notes

 

A-6

 

affected by such amendment or
modification.  The Indenture also
contains provisions permitting the Holders of Series 2003-2 Investor Notes
representing specified percentages of the aggregate outstanding amount of the
Series 2003-2 Investor Notes, on behalf of the Holders of all the Series 2003-2
Investor Notes, to waive compliance by the Issuer with certain provisions of
the Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this Class A-1 Investor Note (or
any one or more predecessor Class A-1 Investor Notes) shall be conclusive and
binding upon such Holder and upon all future Holders of this Class A-1 Investor
Note and of any Class A-1 Investor Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or not notation
of such consent or waiver is made upon this Class A-1 Investor Note. The
Indenture also permits the Indenture Trustee to amend or waive certain terms
and conditions set forth in the Indenture without the consent of Holders of the
Series 2003-2 Investor Notes issued thereunder.

 

The term “Issuer” as used in this Class A-1
Investor Note includes any successor to the Issuer under the Indenture.

 

The Class A-1 Investor Notes are issuable
only in registered form in denominations as provided in the Indenture, subject
to certain limitations set forth therein.

 

This Class A-1 Investor Note and the
Indenture shall be governed by, and construed in accordance with, the law of
the State of New York, and the obligations, rights and remedies of the parties
hereunder and thereunder shall be determined in accordance with such law.

 

No reference herein to the Indenture and no
provision of this Class A-1 Investor Note or of the Indenture shall alter or
impair the obligation of the Issuer, which is absolute and unconditional, to
pay the principal of and interest on this Class A-1 Investor Note at the times,
place and rate, and in the coin or currency herein prescribed.

 

Interests in this Global Note may be
exchanged for Definitive Notes, subject to the provisions of the Indenture.

 

A-7

 

ASSIGNMENT

 

Social Security or taxpayer I.D. or other identifying number of
assignee

 

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

 

(name and address of assignee)

 

the within  Class A-1 Investor
Note and all rights thereunder, and hereby irrevocably constitutes and appoints
                                        ,
attorney, to transfer said Class A-1 Investor Note on the books kept for registration
thereof, with full power of substitution in the premises.

 

	
  Dated:

  	
  By:

  	
   

  	
  (1)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature Guaranteed:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
						

 

(1)                                  NOTE:  The signature to this assignment must
correspond with the name of the registered owner as it appears on the face of
the within Class A-1 Investor Note, without alteration, enlargement or any
change whatsoever.

 

A-8

 

EXHIBIT A-2

TO SERIES 2003-2

INDENTURE SUPPLEMENT

 

FORM OF GLOBAL CLASS A-2 INVESTOR NOTE

 

	
  REGISTERED

  	
   

  	
  $270,000,000

  
	
  No. R-001

  	
   

  	
   

  

 

SEE REVERSE FOR CERTAIN CONDITIONS

 

CUSIP (CINS)
NO. 165182AJ5

ISIN NO. US165182AJ59

 

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING
OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
DEPOSITORY TRUST COMPANY (“DTC”), A NEW YORK CORPORATION, 55 WATER STREET, NEW
YORK, NEW YORK 10004, OR A NOMINEE THEREOF. 
THIS NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY
REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY BE REGISTERED,
IN THE NAME OF ANY PERSON OTHER THAN DTC OR A NOMINEE THEREOF, EXCEPT IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

UNLESS THIS NOTE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC TO THE ISSUER OR THE TRANSFER AGENT AND
REGISTRAR, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, AND
ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC, ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL BECAUSE THE
REGISTERED OWNER, CEDE & CO., HAS AN INTEREST HEREIN.

 

THE PRINCIPAL OF THIS CLASS A-2 INVESTOR NOTE
IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING
PRINCIPAL AMOUNT OF THIS CLASS A-2 INVESTOR NOTE AT ANY TIME MAY BE LESS THAN
THE AMOUNT SHOWN ON THE FACE HEREOF.

 

CHESAPEAKE FUNDING LLC

 

SERIES 2003-2 FLOATING RATE CALLABLE ASSET BACKED INVESTOR NOTES,

CLASS A-2

 

A-9

 

CHESAPEAKE FUNDING LLC, a limited liability
company formed under the laws of the State of Delaware (herein referred to as
the “Issuer”), for value received, hereby promises to pay to Cede &
Co., or registered assigns, the principal sum of Two Hundred Seventy Million
Dollars, which amount shall be payable in the amounts and at the times set
forth in the Indenture described herein, provided, however, that the entire
unpaid principal amount of this Class A-2 Investor Note shall be due on the
Class A-2 Final Maturity Date. However, principal with respect to the Class A-2
Investor Notes may be paid earlier under certain limited circumstances
described in the Indenture.  The Issuer
will pay interest on this Class A-2 Note for each Series 2003-2 Interest
Period, in accordance with the terms of the Indenture at the Class A-2 Note
Rate for such Interest Period.  Each “Series
2003-2 Interest Period” will be 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 2003-2
Interest Period shall commence on and include the Series 2003-2 Closing Date
and end on and include December 7, 2003. 
Such principal of and interest on this Class A-2 Investor Note shall be
paid in the manner specified on the reverse hereof and in the Indenture.

 

The principal of and interest on this Class
A-2 Investor Note are payable in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts. All payments made by the Issuer with respect to this Class A-2 Investor
Note shall be applied as provided in the Indenture.  This Class A-2 Investor Note does not represent an interest in,
or an obligation of, PHH Vehicle Management Services LLC (“VMS”) or any
affiliate of VMS other than the Issuer.

 

Reference is made to the further provisions
of this Class A-2 Investor Note set forth on the reverse hereof, which shall
have the same effect as though fully set forth on the face of this Class A-2
Investor Note. Although a summary of certain provisions of the Indenture is set
forth below and on the reverse hereof and made a part hereof, this Class A-2
Investor Note does not purport to summarize the Indenture and reference is made
to the Indenture for information with respect to the interests, rights,
benefits, obligations, proceeds and duties evidenced hereby and the rights,
duties and obligations of the Issuer and the Indenture Trustee. A copy of the
Indenture may be requested from the Indenture Trustee by writing to the
Indenture Trustee at:  JPMorgan Chase
Bank, 4 New York Plaza, 6th Floor, New York, New York, 10004,
Attention: Institutional Trust Services. 
To the extent not defined herein, the capitalized terms used herein have
the meanings ascribed to them in the Indenture.

 

Unless the certificate of authentication
hereon has been executed by the Indenture Trustee whose name appears below by
manual signature, this Class A-2 Investor Note shall not be entitled to any
benefit under the Indenture referred to on the reverse hereof, or be valid or
obligatory for any purpose.

 

A-10

 

IN WITNESS WHEREOF, the Issuer has caused
this instrument to be signed, manually or in facsimile, by its Authorized
Officer.

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CHESAPEAKE FUNDING LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Class A-2 Investor Notes issued under the
within-mentioned Indenture.

 

	
   

  	
  JPMORGAN CHASE BANK, as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  	
   

  

 

A-11

 

[REVERSE OF CLASS A-2 INVESTOR NOTE]

 

This Class A-2 Investor Note is one of a duly
authorized issue of Class A-2 Investor Notes of the Issuer designated its
Series 2003-2 Floating Rate Asset Backed Investor Notes (herein called the “Class
A-2 Investor Notes”), all issued under (i) a Base Indenture dated as of
June 30, 1999 (such Base Indenture, as amended or modified, is herein
called the “Base Indenture”), between the Issuer and JPMorgan Chase Bank
(formerly known as The Chase Manhattan Bank), as Indenture Trustee (the “Indenture
Trustee”, which term includes any successor Indenture Trustee under the
Base Indenture), and (ii) a Series 2003-2 Indenture Supplement dated as of
November 19, 2003 (the “Series 2003-2 Indenture Supplement”) between
the Issuer and the Indenture Trustee. The Base Indenture and the Series 2003-2
Supplement are referred to herein as the “Indenture”. The Class A-2
Investor Notes are subject to all terms of the Indenture. All terms used in
this Class A-2 Investor Note that are defined in the Indenture, as
supplemented, modified or amended, shall have the meanings assigned to them in
or pursuant to the Indenture, as so supplemented, modified or amended.

 

The Class A-2 Investor Notes are and will be
equally and ratably secured by the Series 2003-2 Collateral pledged as security
therefor as provided in the Indenture and the Series 2003-2 Indenture
Supplement.

 

Principal of the Class A-2 Investor Notes
will be payable on each Payment Date specified in and in the amounts described
in the Indenture. “Payment Date” means the 7th day of each month, or if
such date is not a Business Day, the next succeeding Business Day, commencing
December 8, 2003.

 

The entire unpaid principal amount of this
Class A-2 Investor Note shall be due and payable on the Class A-2 Final
Maturity Date. Notwithstanding the foregoing, principal on the Class A-2
Investor Notes will be paid earlier during the Series 2003-2 Amortization
Period as described in the Indenture. All principal payments on the Class A-2
Investor Notes shall be made pro rata to the Class A-2 Investor Noteholders
entitled thereto.

 

The Issuer will have the option to prepay the
Series 2003-2 Investor Notes, in whole but not in part, on any Payment Date
after the Payment Date in June 2005. 
The prepayment price for the Series 2003-2 Investor Notes will be equal
to the amount set forth in the Indenture.

 

Interest will accrue on this Class A-2
Investor Notes for each Series 2003-2 Interest Period at a rate equal to (i)
with respect to the initial Series 2003-2 Interest Period, 1.42% per annum and
(ii) with respect to each Series 2003-2 Interest Period thereafter, a rate per
annum equal to One-Month LIBOR for such Series 2003-2 Interest Period plus
0.30% per annum (the “Class A-2 Note Rate”).  “One-Month LIBOR” means, for each Series 2003-2 Interest
Period, the rate per annum determined on the related LIBOR Determination Date
by the Calculation Agent to be the rate for Dollar deposits having a maturity
equal to one month that appears on Telerate Page 3750 at approximately 11:00
a.m., London time, on such LIBOR Determination Date; provided, however, that if such rate does not appear on
Telerate Page 3750, One-Month LIBOR will mean, for such 2003-2 Interest Period,
the rate per annum equal to the arithmetic mean (rounded to the nearest
one-one-hundred-thousandth of one percent) of the rates

 

A-12

 

quoted by the Reference Banks
to the Calculation Agent as the rates at which deposits in Dollars are offered
by the Reference Banks at approximately 11:00 a.m., London time, on the LIBOR
Determination Date to prime banks in the London interbank market for a period
equal to one month; provided, further,
that if fewer than two quotations are provided as requested by the Reference
Banks, “One-Month LIBOR” for such Series 2003-2 Interest Period will mean the
arithmetic mean (rounded to the nearest one-one-hundred-thousandth of one
percent) of the rates quoted by major banks in New York, New York selected by the
Calculation Agent, at approximately 10:00 a.m., New York City time, on the
first day of such Series 2003-2 Interest Period for loans in Dollars to leading
European banks for a period equal to one month; provided, finally, that if no such quotes are provided,
“One-Month LIBOR” for such Series 2003-2 Interest Period will mean One-Month
LIBOR as in effect with respect to the preceding Series 2003-2 Interest Period.

 

The Issuer shall pay interest on overdue
installments of interest at the Class A-2 Note Rate to the extent lawful.

 

As provided in the Indenture and subject to
certain limitations set forth therein, the transfer of this Class A-2 Investor
Note may be registered on the Note Register upon surrender of this Class A-2
Investor Note for registration of transfer at the office or agency designated
by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Indenture Trustee
duly executed by, the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Class A-2 Investor Notes of authorized
denominations in the same aggregate principal amount will be issued to the
designated transferee or transferees. No service charge will be charged for any
registration of transfer or exchange of this Class A-2 Investor Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such
registration of transfer or exchange.

 

By acquiring a Class A-2 Investor Note or an
interest therein, each Class A-2 Investor Noteholder and each Class A-2
Investor Note Owner and the Issuer and the Indenture Trustee 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, 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 bankruptcy, reorganization, arrangement, insolvency
or liquidation proceeding or other proceedings under any federal or state
bankruptcy or similar law.

 

Each Class A-2 Investor Noteholder, by
acceptance of a Class A-2 Investor Note or, in the case of a Class A-2 Investor
Note Owner, a beneficial interest in a Class A-2 Investor Note, 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

 

A-13

 

and expenses incurred,
contracted for or otherwise existing with respect to any other SUBI (used in
this paragraph as defined in the Origination Trust Agreement), any other SUBI
Portfolio (used in this paragraph 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 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.

 

Each Class A-2 Investor Noteholder or Class
A-2 Investor Note Owner, by acceptance of a Class A-2 Investor Note or, in the
case of a Class A-2 Investor Note Owner, a beneficial interest in a Class A-2
Investor Note, covenants and agrees that by accepting the benefits of the
Indenture that such Class A-2 Investor Noteholder or Class A-2 Investor Note
Owner will not institute against, or join with any other Person in instituting
against, the Issuer any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other proceedings, under any Federal or state
bankruptcy or similar law.

 

It is the intent of the Issuer, each Class
A-2 Investor Noteholder and each Class A-2 Investor Note Owner that, for
Federal, state and local income and franchise tax purposes only, the Class A-2
Investor Notes will evidence indebtedness of the Issuer secured by the Series
2003-2 Collateral.  Each Class A-2
Investor Noteholder and each Class A-2 Investor Note Owner, by the acceptance
of this Class A-2 Investor Note, agrees to treat this Class A-2 Investor Note
for purposes of Federal, state and local income and franchise taxes and any
other tax imposed on or measured by income, as indebtedness of the Issuer.

 

The Indenture permits, with certain
exceptions as therein provided, the amendment thereof and the modification of
the rights and obligations of the Issuer and the rights of the Holders of the Series 2003-2 Investor Notes under the
Indenture at any time by the Issuer with the consent of the Holders of a
Majority in Interest of the Series 2003-2 Investor Notes

 

A-14

 

affected by such amendment or
modification.  The Indenture also
contains provisions permitting the Holders of Series 2003-2 Investor Notes
representing specified percentages of the aggregate outstanding amount of the
Series 2003-2 Investor Notes, on behalf of the Holders of all the Series 2003-2
Investor Notes, to waive compliance by the Issuer with certain provisions of
the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Class A-2
Investor Note (or any one or more predecessor Class A-2 Investor Notes) shall
be conclusive and binding upon such Holder and upon all future Holders of this
Class A-2 Investor Note and of any Class A-2 Investor Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether
or not notation of such consent or waiver is made upon this Class A-2 Investor
Note. The Indenture also permits the Indenture Trustee to amend or waive
certain terms and conditions set forth in the Indenture without the consent of
Holders of the Series 2003-2 Investor Notes issued thereunder.

 

The term “Issuer” as used in this Class A-2
Investor Note includes any successor to the Issuer under the Indenture.

 

The Class A-2 Investor Notes are issuable
only in registered form in denominations as provided in the Indenture, subject
to certain limitations set forth therein.

 

This Class A-2 Investor Note and the
Indenture shall be governed by, and construed in accordance with, the law of
the State of New York, and the obligations, rights and remedies of the parties
hereunder and thereunder shall be determined in accordance with such law.

 

No reference herein to the Indenture and no
provision of this Class A-2 Investor Note or of the Indenture shall alter or
impair the obligation of the Issuer, which is absolute and unconditional, to
pay the principal of and interest on this Class A-2 Investor Note at the times,
place and rate, and in the coin or currency herein prescribed.

 

Interests in this Global Note may be
exchanged for Definitive Notes, subject to the provisions of the Indenture.

 

A-15

 

ASSIGNMENT

 

Social Security or taxpayer I.D. or other identifying number of
assignee

 

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

 

 

(name and address of assignee)

 

the within  Class A-2 Investor
Note and all rights thereunder, and hereby irrevocably constitutes and appoints
                                        ,
attorney, to transfer said Class A-2 Investor Note on the books kept for
registration thereof, with full power of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
  By:

  	
   

  	
  (2)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature Guaranteed:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
								

 

(2)                                  NOTE:  The signature to this assignment must
correspond with the name of the registered owner as it appears on the face of
the within Class A-2 Investor Note, without alteration, enlargement or any
change whatsoever.

 

A-16

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