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Exhibit 10.1    
    

CONFORMED
COPY 

AESOP
FUNDING II L.L.C.,

as Issuer 

and 

THE
BANK OF NEW YORK,

as Trustee and Series 2004-2 Agent 

SERIES
2004-2 SUPPLEMENT

dated as of February 18, 2004 

to 

AMENDED
AND RESTATED BASE INDENTURE

dated as of July 30, 1997 

   Table of Contents 

	 	 	Page
	 	 	

	ARTICLE I DEFINITIONS	 	2
	

ARTICLE II SERIES 2004-2 ALLOCATIONS	
 	

21
	 	
 Section 2.1 Establishment of Series 2004-2 Collection Account, Series 2004-2 Excess Collection Account

                   and Series 2004-2 Accrued Interest Account	
 	

21
	 	Section 2.2 Allocations with Respect to the Series 2004-2 Notes	 	22
	 	Section 2.3 Payments to Noteholders and Each Series 2004-2 Interest Rate Swap Counterparty	 	26
	 	Section 2.4 Payment of Note Interest	 	29
	 	Section 2.5 Payment of Note Principal	 	30
	 	Section 2.6 Administrator's Failure to Instruct the Trustee to Make a Deposit or Payment	 	34
	 	Section 2.7 Series-2004-2 Reserve Account	 	34
	 	Section 2.8 Series 2004-2 Letters of Credit and Series 2004-2 Cash Collateral Account	 	36
	 	Section 2.9 Series 2004-2 Distribution Account	 	41
	 	Section 2.10 Series 2004-2 Interest Rate Swaps	 	42
	 	Section 2.11 Series 2004-2 Accounts Permitted Investments	 	44
	 	Section 2.12 Series 2004-2 Demand Notes Constitute Additional Collateral for Series 2004-2 Notes	 	44
	

ARTICLE III AMORTIZATION EVENTS	
 	

44
	

ARTICLE IV RIGHT TO WAIVE PURCHASE RESTRICTIONS	
 	

46
	

ARTICLE V FORM OF SERIES 2004-2 NOTES	
 	

47
	 	
 Section 5.1 Restricted Global Series 2004-2 Notes	
 	

47
	 	Section 5.2 Temporary Global Series 2004-2 Notes; Permanent Global Series 2004-2 Notes	 	48
	

ARTICLE VI GENERAL	
 	

48
	 	
 Section 6.1 Optional Repurchase	
 	

48
	 	Section 6.2 Information	 	49
	 	Section 6.3 Exhibits	 	49
	 	Section 6.4 Ratification of Base Indenture	 	49
	 	Section 6.5 Counterparts	 	49
	 	Section 6.6 Governing Law	 	49
	 	Section 6.7 Amendments	 	49
	 	Section 6.8 Discharge of Indenture	 	50
	 	Section 6.9 Notice to Surety Provider and Rating Agencies	 	50

(i)

 
Table of Contents

(continued) 

	 	 	Page
	 	 	

	 	Section 6.10 Certain Rights of Surety Provider	 	50
	 	Section 6.11 Surety Provider Deemed Noteholder and Secured Party	 	51
	 	Section 6.12 Capitalization of AFC-II	 	51
	 	Section 6.13 Series 2004-2 Required Non-Program Enhancement Percentage	 	51
	 	Section 6.14 Third Party Beneficiary	 	51
	 	Section 6.15 Prior Notice by Trustee to Surety Provider	 	51
	 	Section 6.16 Effect of Payments by the Surety Provider	 	52
	 	Section 6.17 Series 2004-2 Demand Notes	 	52
	 	Section 6.18 Subrogation	 	52
	 	Section 6.19 Termination of Supplement	 	52
	 	Section 6.20 Condition to Termination of AFC-II's Obligations	 	53

(ii)

CONFORMED COPY 

                        SERIES
2004-2 SUPPLEMENT, dated as of February 18, 2004 (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 2004-2 Noteholders, each
Series 2004-2 Interest Rate Swap Counterparty and the Surety Provider (the "Series 2004-2 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 three classes to be issued pursuant to the
Base Indenture and this Supplement, and such Series of Notes shall be
designated generally as Series 2004-2 Rental Car Asset Backed Notes. 

                        The
Series 2004-2 Notes will be issued in three classes: one of which shall be designated as the Series 2004-2 2.76% Rental Car Asset Backed Notes,
Class A-1, one of which shall be designated as the Series 2004-2 Floating Rate Rental Car Asset Backed Notes, Class A-2, and one of which shall
be designated as the Series 2004-2 Floating Rate Rental Car Asset Backed Notes, Class A-3. 

                        The
proceeds from the sale of the Series 2004-2 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 2004-2 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. 

 
CONFORMED COPY 

 
 

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 2004-2 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 2004-2 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 2004-2
Letters of Credit. 

                        "Certificate
of Termination Date Demand" means a certificate in the form of Annex D to the
Series 2004-2 Letters of Credit. 

                        "Certificate
of Termination Demand" means a certificate in the form of Annex C to the Series 2004-2
Letters of Credit. 

                        "Certificate
of Unpaid Demand Note Demand" means a certificate in the form of Annex B to the Series 2004-2
Letters of Credit. 

                        "Class"
means a class of the Series 2004-2 Notes, which may be the Class A-1 Notes, the Class A-2
Notes or the Class A-3 Notes. 

                        "Class A-1
Carryover Controlled Amortization Amount" means, with respect to any Related Month during the Three-Year Notes
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 

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

                        "Class A-1
Controlled Amortization Amount" means (i) with respect to any Related Month during the Three-Year Notes
Controlled Amortization Period other than the Related Month immediately preceding the Three-Year Notes Expected Final Distribution Date, $16,666,666.66 and (ii) with respect to the
Related Month immediately preceding the Three-Year Notes Expected Final Distribution Date, $16,666,666.70. 

                        "Class A-1
Controlled Distribution Amount" means, with respect to any Related Month during the Three-Year 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
Initial Invested Amount" means the aggregate initial principal amount of the Class A-1 Notes, which is
$100,000,000. 

                        "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 2004-2 Interest Period, an amount
equal to $245,333.33 and (ii) any other Series 2004-2 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 2004-2 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 2.76% per annum. 

                        "Class A-1
Notes" means any one of the Series 2004-2 2.76% Rental Car Asset Backed Notes,
Class A-1, executed by AFC-II and authenticated by or on behalf of the Trustee, 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 Three-Year Notes
Controlled Amortization Period, the amount, if any, by which the portion of the Monthly Total Principal Allocation paid to the Class A-2 

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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 Three-Year Notes Controlled Amortization Period, the
Class A-2 Carryover Controlled Amortization Amount shall be zero. 

                        "Class A-2
Controlled Amortization Amount" means (i) with respect to any Related Month during the Three-Year Notes
Controlled Amortization Period other than the Related Month immediately preceding the Three-Year Notes Expected Final Distribution Date, $16,666,666.66 and (ii) with respect to the
Related Month immediately preceding the Three-Year Notes Expected Final Distribution Date, $16,666,666.70. 

                        "Class A-2
Controlled Distribution Amount" means, with respect to any Related Month during the Three-Year 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
Initial Invested Amount" means the aggregate initial principal amount of the Class A-2 Notes, which is
$100,000,000. 

                        "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 2004-2 Interest Period, an amount equal to the product
of (A) the Class A-2 Invested Amount on the first day of such Series 2004-2 Interest Period, after giving effect to any principal payments made on such
date, (B) the Class A-2 Note Rate for such Series 2004-2 Interest Period and (C) the number of days in such Series 2004-2
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 2004-2 Interest Period, 1.21375% per annum and
(ii) any other Series 2004-2 Interest Period, the sum of 0.12% plus LIBOR for such Series 2004-2 Interest Period. 

                        "Class A-2
Notes" means any one of the Series 2004-2 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. 

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                        "Class A-3
Carryover Controlled Amortization Amount" means, with respect to any Related Month during the Class A-3
Controlled Amortization Period, the amount, if any, by which the portion of the Monthly Total Principal Allocation paid to the Class A-3 Noteholders pursuant to
Section 2.5(e) for the previous Related Month was less than the Class A-3 Controlled Distribution Amount for the previous Related Month;
provided, however, that for the first Related Month in the Class A-3 Controlled Amortization Period, the
Class A-3 Carryover Controlled Amortization Amount shall be zero. 

                        "Class A-3
Controlled Amortization Amount" means (i) with respect to any Related Month during the Class A-3
Controlled Amortization Period other than the Related Month immediately preceding the Class A-3 Expected Final Distribution Date, $66,666,666.66 and (ii) with respect to the
Related Month immediately preceding the Class A-3 Expected Final Distribution Date, $66,666,666.70. 

                        "Class A-3
Controlled Amortization Period" means the period commencing at the opening of business on October 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 2004-2 Rapid Amortization
Period, (ii) the date on which the Class A-3 Notes are fully paid and (iii) the termination of the Indenture. 

                        "Class A-3
Controlled Distribution Amount" means, with respect to any Related Month during the Class A-3 Controlled
Amortization Period, an amount equal to the sum of the Class A-3 Controlled Amortization Amount and any Class A-3 Carryover Controlled Amortization Amount for
such Related Month. 

                        "Class A-3
Expected Final Distribution Date" means the April 2009 Distribution Date. 

                        "Class A-3
Final Distribution Date" means the April 2010 Distribution Date. 

                        "Class A-3
Initial Invested Amount" means the aggregate initial principal amount of the Class A-3 Notes, which is
$400,000,000. 

                        "Class A-3
Invested Amount" means, when used with respect to any date, an amount equal to the Class A-3 Outstanding
Principal Amount plus the sum of (a) the amount of any principal payments made to the Class A-3 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-3 Noteholders that have been rescinded or otherwise returned by the
Class A-3 Noteholders for any reason. 

                        "Class A-3
Monthly Interest" means, with respect to any Series 2004-2 Interest Period, an amount equal to the product
of (A) the Class A-3 Invested Amount on the first day of such Series 2004-2 Interest Period, after giving effect to any principal payments made on such
date, (B) the Class A-3 Note Rate for such Series 2004-2 Interest Period and (C) the number of days in such Series 2004-2
Interest Period divided by 360. 

                        "Class A-3
Noteholder" means the Person in whose name a Class A-3 Note is registered in the Note Register. 

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                        "Class A-3
Note Rate" means, for (i) the initial Series 2004-2 Interest Period, 1.31375% per annum and
(ii) any other Series 2004-2 Interest Period, the sum of 0.22% plus LIBOR for such Series 2004-2 Interest Period. 

                        "Class A-3
Notes" means any one of the Series 2004-2 Floating Rate Rental Car Asset Backed Notes,
Class A-3, executed by AFC-II and authenticated by or on behalf of the Trustee, substantially in the form of
Exhibit A-3-1, Exhibit A-3-2 or
Exhibit A-3-3. Definitive Class A-3 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-3
Outstanding Principal Amount" means, when used with respect to any date, an amount equal to (a) the
Class A-3 Initial Invested Amount minus (b) the amount of principal payments made to Class A-3 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 2004-2 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 2004-2 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. 

                        "Fixed
Rate Payment" means, for any Distribution Date, the aggregate of the amounts, if any, payable by AFC-II as the "Fixed Amount" under each
of the Series 2004-2 Interest Rate Swaps after the netting of payments due to AFC-II as the "Floating Amount" from the Series 2004-2 Interest Rate
Swap Counterparty under each such Series 2004-2 Interest Rate Swap on such Distribution Date. 

                        "Insurance
Agreement" means the Insurance Agreement, dated as of February 18, 2004, among the Surety Provider, the Trustee and AFC-II,
which shall constitute an "Enhancement Agreement" with respect to the Series 2004-2 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 2004-2
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 2004-2 Available Reserve Account Amount on such Distribution Date, the Series 2004-2 Letter of Credit Amount on such Distribution Date and 

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the
Series 2004-2 AESOP I Operating Lease Loan Agreement Borrowing Base on such Distribution Date. 

                        "Lease
Deficit Disbursement" means an amount drawn under a Series 2004-2 Letter of Credit pursuant to a Certificate of Lease Deficit
Demand. 

                        "LIBOR"
means, with respect to each Series 2004-2 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 2004-2 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 2004-2 Interest Period will be the arithmetic mean of such quotations; or 

            (iii)  If
fewer than two such quotations are provided pursuant to clause (ii), "LIBOR" for such Series 2004-2 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 2004-2 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 2004-2 Interest Period will be the same as "LIBOR" for the
immediately preceding Series 2004-2 Interest Period. 

                        "LIBOR
Determination Date" means, with respect to any Series 2004-2 Interest Period, the second London Banking Day preceding the first
day of such Series 2004-2 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 2004-2 Principal Allocations with respect to such
Related Month. 

                        "Moody's"
means Moody's Investors Service. 

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                        "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. 

                        "Permanent
Global Class A-3 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 2004-2 Demand Notes included in the Series 2004-2 Demand Note Payment Amount as of the Series 2004-2 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 2004-2 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 2004-2 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 2004-2 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 2004-2 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 2004-2 AESOP I Operating Lease Loan Agreement Borrowing Base on such date and
(2) the lesser of (a) the Series 2004-2 Liquidity Amount on such date and (b) the Series 2004-2 Required Liquidity Amount on such date. 

                        "Pro
Rata Share" means, with respect to any Series 2004-2 Letter of Credit Provider as of any date, the fraction (expressed as a
percentage) obtained by dividing (A) the available amount under such Series 2004-2 Letter of Credit Provider's Series 2004-2 Letter of Credit as of such
date by (B) an amount equal to the aggregate available amount under all Series 2004-2 Letters of Credit as of such date; provided, that only for
purposes of calculating the Pro Rata Share with respect to any Series 2004-2 Letter of Credit Provider as of any date, if such Series 2004-2 Letter of Credit
Provider has not complied with its obligation to pay the Trustee the amount of any draw under its Series 2004-2 Letter of Credit made prior to such date, the 

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available
amount under such Series 2004-2 Letter of Credit Provider's Series 2004-2 Letter of Credit as of such date shall be treated as reduced (for calculation
purposes only) by the amount of such unpaid demand and shall not be reinstated for purposes of such calculation unless and until the date as of which such Series 2004-2 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 2004-2 Letter of
Credit). 

                        "Qualified
Interest Rate Swap Counterparty" means a counterparty to any Series 2004-2 Interest Rate Swap (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 2004-2 Interest Rate Swap 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 2004-2 Noteholders holding more than 50% of the Series 2004-2 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. 

                        "Restricted
Global Class A-3 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 2000-4
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. 

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                        "Series 2002-3
Notes" means the Series of Notes designated as the Series 2002-3 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
Notes" means the Series of Notes designated as the Series 2003-5 Notes. 

                        "Series 2004-1
Notes" means the Series of Notes designated as the Series 2004-1 Notes. 

                        "Series 2004-2
Accounts" means each of the Series 2004-2 Distribution Account, the Series 2004-2
Reserve Account, the Series 2004-2 Collection Account, the Series 2004-2 Excess Collection Account and the Series 2004-2 Accrued Interest
Account. 

                        "Series 2004-2
Accrued Interest Account" is defined in Section 2.1(b). 

                        "Series 2004-2
Adjusted Monthly Interest" means (a) for the initial Distribution Date, an amount equal to $838,302.08 and
(b) for any other Distribution Date, the sum of (i) the sum of (A) for the Series 2004-2 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 2004-2 Interest Period, divided by twelve, (B) an amount equal to the product of (1) the Class A-2 Note Rate for such
Series 2004-2 Interest Period, (2) the Class A-2 Outstanding Principal Amount on the first day of such Series 2004-2 Interest Period and
(3) a fraction, the numerator of which is the number of days in such Series 2004-2 Interest Period and the denominator of which is 360 and (C) an amount equal to the
product of (1) the Class A-3 Note Rate for such Series 2004-2 Interest Period, (2) the Class A-3 Outstanding Principal Amount on
the first day of such Series 2004-2 Interest Period and (3) a fraction, the numerator of which is the number of days in such Series 2004-2 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 2004-2
AESOP I Operating Lease Loan Agreement Borrowing Base" means, as of any date of determination, the product of
(a) the Series 2004-2 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. 

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                        "Series 2004-2
AESOP I Operating Lease Vehicle Percentage" means, as of any date of determination, the percentage equivalent (which
percentage shall never exceed 100%) of a fraction, the numerator of which is the Series 2004-2 Required AESOP I Operating Lease Vehicle Amount as of such date and the denominator of
which is the sum of the Required AESOP I Operating Lease Vehicle Amounts for all Series of Notes as of such date. 

                        "Series 2004-2
Agent" is defined in the recitals hereto. 

                        "Series 2004-2
Available Cash Collateral Account Amount" means, as of any date of determination, the amount on deposit in the
Series 2004-2 Cash Collateral Account (after giving effect to any deposits thereto and withdrawals and releases therefrom on such date). 

                        "Series-2004-2
Available Reserve Account Amount" means, as of any date of determination, the amount on deposit in the
Series 2004-2 Reserve Account (after giving effect to any deposits thereto and withdrawals and releases therefrom on such date). 

                        "Series 2004-2
Cash Collateral Account" is defined in Section 2.8(f). 

                        "Series 2004-2
Cash Collateral Account Collateral" is defined in Section 2.8(a). 

                        "Series 2004-2
Cash Collateral Account Surplus" means, with respect to any Distribution Date, the lesser of (a) the
Series 2004-2 Available Cash Collateral Account Amount and (b) the lesser of (A) the excess, if any, of the Series 2004-2 Liquidity Amount (after
giving effect to any withdrawal from the Series 2004-2 Reserve Account on such Distribution Date) over the Series 2004-2 Required Liquidity Amount on such
Distribution Date and (B) the excess, if any, of the Series 2004-2 Enhancement Amount (after giving effect to any withdrawal from the Series 2004-2 Reserve
Account on such Distribution Date) over the Series 2004-2 Required Enhancement Amount on such Distribution Date; provided,
however that, on any date after the Series 2004-2 Letter of Credit Termination Date, the Series 2004-2 Cash Collateral Account
Surplus shall mean the excess, if any, of (x) the Series 2004-2 Available Cash Collateral Account Amount over (y) the Series 2004-2 Demand Note
Payment Amount minus the Pre-Preference Period Demand Note Payments as of such date. 

                        "Series 2004-2
Cash Collateral Percentage" means, as of any date of determination, the percentage equivalent of a fraction, the numerator
of which is the Series 2004-2 Available Cash Collateral Amount as of such date and the denominator of which is the Series 2004-2 Letter of Credit Liquidity Amount
as of such date. 

                        "Series 2004-2
Closing Date" means February 18, 2004. 

                        "Series 2004-2
Collateral" means the Collateral, each Series 2004-2 Letter of Credit, each
Series 2004-2 Demand Note, the Series 2004-2 Distribution Account Collateral, the Series 2004-2 Interest Rate Swap Collateral, the
Series 2004-2 Cash Collateral Account Collateral and the Series 2004-2 Reserve Account Collateral. 

                        "Series 2004-2
Collection Account" is defined in Section 2.1(b). 

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                        "Series 2004-2
Controlled Amortization Period" means the Three-Year Notes Controlled Amortization Period and/or the
Class A-3 Controlled Amortization Period, as the case may be. 

                        "Series 2004-2
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 2004-2
Demand Note Payment Amount" means, as of the Series 2004-2 Letter of Credit Termination Date, the
aggregate amount of all proceeds of demands made on the Series 2004-2 Demand Notes pursuant to Section 2.5(b) or (c) that were deposited into the
Series 2004-2 Distribution Account and paid to the Series 2004-2 Noteholders during the one year period ending on the Series 2004-2 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 2004-2 Demand Note Payment Amount as of the Series 2004-2 Letter of Credit Termination Date shall equal the Series 2004-2 Demand Note
Payment Amount as if it were calculated as of the date of such occurrence. 

                        "Series 2004-2
Deposit Date" is defined in Section 2.2. 

                        "Series 2004-2
Distribution Account" is defined in Section 2.9(a). 

                        "Series 2004-2
Distribution Account Collateral" is defined in Section 2.9(d). 

                        "Series 2004-2
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 2004-2 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 2004-2 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 2004-2 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 2004-2 Letter of Credit Provider. 

                        "Series 2004-2
Enhancement" means the Series 2004-2 Cash Collateral Account Collateral, the
Series 2004-2 Letters of Credit, the Series 2004-2 Demand Notes, the Series 2004-2 Overcollateralization Amount and the
Series 2004-2 Reserve Account Amount. 

                        "Series 2004-2
Enhancement Amount" means, as of any date of determination, the sum of (i) the Series 2004-2
Overcollateralization Amount as of such date, (ii) the Series 2004-2 Letter of Credit Amount as of such date, (iii) the Series 2004-2 Available
Reserve Account Amount as of such date and (iv) the amount of cash and Permitted Investments on 

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deposit
in the Series 2004-2 Collection Account (not including amounts allocable to the Series 2004-2 Accrued Interest Account) and the
Series 2004-2 Excess Collection Account as of such date. 

                        "Series 2004-2
Enhancement Deficiency" means, on any date of determination, the amount by which the Series 2004-2
Enhancement Amount is less than the Series 2004-2 Required Enhancement Amount as of such date. 

                        "Series 2004-2
Excess Collection Account" is defined in Section 2.1(b). 

                        "Series 2004-2
Final Distribution Date" means the Three-Year Notes Final Distribution Date or the
Class A-3 Final Distribution Date, as the case may be. 

                        "Series 2004-2
Initial Invested Amount" means the sum of the Class A-1 Initial Invested Amount, the
Class A-2 Initial Invested Amount and the Class A-3 Initial Invested Amount. 

                        "Series 2004-2
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 2004-2 Interest Period shall
commence on and include the Series 2004-2 Closing Date and end on and include March 21, 2004. 

                        "Series 2004-2
Interest Rate Swap" is defined in Section 2.10(a). 

                        "Series 2004-2
Interest Rate Swap Collateral" is defined in Section 2.10(d). 

                        "Series 2004-2
Interest Rate Swap Counterparty" means AFC-II's counterparty under any Series 2004-2
Interest Rate Swap. 

                        "Series 2004-2
Interest Rate Swap Proceeds" means the amounts received by the Trustee from a Series 2004-2 Interest
Rate Swap Counterparty from time to time in respect of any Series 2004-2 Interest Rate Swap (including amounts received from a guarantor or from collateral). 

                        "Series 2004-2
Invested Amount" means, as of any date of determination, the sum of the Class A-1 Invested Amount as of
such date, the Class A-2 Invested Amount as of such date and the Class A-3 Invested Amount as of such date. 

                        "Series 2004-2
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 2004-2 Invested Amount and the Series 2004-2 Overcollateralization Amount, determined during the Series 2004-2
Revolving Period as of the end of the Related Month (or, until the end of the initial Related Month, on the Series 2004-2 Closing Date), or, during the
Series 2004-2 Controlled Amortization Period and the Series 2004-2 Rapid Amortization Period, as of the end of the Series 2004-2 Revolving
Period, and the denominator of which shall be the greater of (I) the Aggregate 

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Asset
Amount as of the end of the Related Month or, until the end of the initial Related Month, as of the Series 2004-2 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 the
Accrued Amounts with respect to the Series 2004-2 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 2004-2
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 2004-2 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 2004-2 Accrued
Interest Account (excluding any amounts paid into the Series 2004-2 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 2004-2
Lease Payment Deficit" means either a Series 2004-2 Lease Interest Payment Deficit or a
Series 2004-2 Lease Principal Payment Deficit. 

                        "Series 2004-2
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 2004-2 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 2004-2 Lease Principal
Payment Deficit. 

                        "Series 2004-2
Lease Principal Payment Deficit" means on any Distribution Date the sum of (a) the Series 2004-2
Monthly Lease Principal Payment Deficit for such Distribution
Date and (b) the Series 2004-2 Lease Principal Payment Carryover Deficit for such Distribution Date. 

                        "Series 2004-2
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 2004-2 Eligible Letter of Credit Provider in favor of the Trustee for the benefit of the
Series 2004-2 Noteholders, each Series 2004-2 Interest Rate Swap Counterparty and the Surety Provider in form and substance satisfactory to the Surety Provider. 

                        "Series 2004-2
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 

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each
Series 2004-2 Letter of Credit, as specified therein, and (ii) if the Series 2004-2 Cash Collateral Account has been established and funded pursuant
to Section 2.8, the Series 2004-2 Available Cash Collateral Account Amount on such date and (b) the aggregate outstanding principal amount of the
Series 2004-2 Demand Notes on such date. 

                        "Series 2004-2
Letter of Credit Expiration Date" means, with respect to any Series 2004-2 Letter of Credit, the
expiration date set forth in such Series 2004-2 Letter of Credit, as such date may be extended in accordance with the terms of such Series 2004-2 Letter of
Credit. 

                        "Series 2004-2
Letter of Credit Liquidity Amount" means, as of any date of determination, the sum of (a) the aggregate amount
available to be drawn on such date under each Series 2004-2 Letter of Credit, as specified therein, and (b) if the Series 2004-2 Cash Collateral Account
has been established and funded pursuant to Section 2.8, the Series 2004-2 Available Cash Collateral Account Amount on such date. 

                        "Series 2004-2
Letter of Credit Provider" means the issuer of a Series 2004-2 Letter of Credit. 

                        "Series 2004-2
Letter of Credit Termination Date" means the first to occur of (a) the date on which the
Series 2004-2 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 2004-2 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 2004-2
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 2004-2 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 2004-2 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 2004-2 Limited Liquidation Event of Default. 

                        "Series 2004-2
Liquidity Amount" means, as of any date of determination, the sum of (a) the Series 2004-2
Letter of Credit Liquidity Amount on such date and (b) the Series 2004-2 Available Reserve Account Amount on such date. 

                        "Series 2004-2
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 2004-2
Maximum Amount" means any of the Series 2004-2 Maximum Manufacturer Amounts, the
Series 2004-2 Maximum Non-Eligible Manufacturer Amount, the 

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Series 2004-2
Maximum Non-Program Vehicle Amount or the Series 2004-2 Maximum Specified States Amount. 

                        "Series 2004-2
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 2004-2
Maximum Manufacturer Amount" means, as of any day, any of the Series 2004-2 Maximum Mitsubishi Amount,
the Series 2004-2 Maximum Individual Kia/Isuzu/Subaru/Hyundai/Suzuki Amount or the Series 2004-2 Maximum Aggregate Kia/Isuzu/Subaru/Hyundai/Suzuki Amount. 

                        "Series 2004-2
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 2004-2
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 2004-2
Maximum Non-Program Vehicle Amount" means, as of any day, an amount equal to the
Series 2004-2 Maximum Non-Program Vehicle Percentage of the aggregate Net Book Value of all Vehicles leased under the Leases on such day. 

                        "Series 2004-2
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 2004-2 Closing Date, with prompt written notice thereof delivered by AFC-II to the Trustee. 

                        "Series 2004-2
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 2004-2
Monthly Interest" means, with respect to any Series 2004-2 Interest Period, the sum of the
Class A-1 Monthly Interest, the Class A-2 Monthly Interest and the Class A-3 Monthly Interest with respect to such
Series 2004-2 Interest Period. 

                        "Series 2004-2
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 2004-2
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 2004-2 Collection Account (without giving effect to any amounts paid into the Series 2004-2 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. 

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                        "Series 2004-2
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 2004-2
Note Rate" means, the Class A-1 Note Rate, the Class A-2 Note Rate or the
Class A-3 Note Rate, as the context may require. 

                        "Series 2004-2
Noteholder" means any Class A-1 Noteholder, any Class A-2 Noteholder or any
Class A-3 Noteholder. 

                        "Series 2004-2
Notes" means, collectively, the Class A-1 Notes, the Class A-2 Notes and the
Class A-3 Notes. 

                        "Series 2004-2
Outstanding Principal Amount" means, as of any date of determination, the sum of the Class A-1
Outstanding Principal Amount, the Class A-2 Outstanding Principal Amount and the Class A-3 Outstanding Principal Amount. 

                        "Series 2004-2
Overcollateralization Amount" means (i) as of any date on which no AESOP I Operating Lease Vehicle Deficiency
exists, the Series 2004-2 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 2004-2 AESOP I Operating Lease Loan Agreement Borrowing Base as of such date over (y) the Series 2004-2 Invested
Amount as of such date. 

                        "Series 2004-2
Past Due Rent Payment" is defined in Section 2.2(g). 

                        "Series 2004-2
Percentage" means, as of any date of determination, a fraction, expressed as a percentage, the numerator of which is the
Series 2004-2 Invested Amount as of such date and the denominator of which is the Aggregate Invested Amount as of such date. 

                        "Series 2004-2
Principal Allocation" is defined in Section 2.2(a)(ii). 

                        "Series 2004-2
Program Vehicle Percentage" means, as of any date of determination, 100% minus the
Series 2004-2 Non-Program Vehicle Percentage. 

                        "Series 2004-2
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 2004-2 Notes and ending upon the earliest to occur of (i) the date on which the
Series 2004-2 Notes are fully paid, the Surety Provider has been paid all Surety Provider Fees and all other Surety Provider Reimbursement Amounts then due and the
Series 2004-2 Interest Rate Swaps have been terminated and there are no amounts due and owing thereunder, (ii) the Series 2004-2 Termination Date and
(iii) the termination of the Indenture. 

                        "Series 2004-2
Reimbursement Agreement" means any and each agreement providing for the reimbursement of a
Series 2004-2 Letter of Credit Provider for draws under its 

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Series 2004-2
Letter of Credit as the same may be amended, supplemented, restated or otherwise modified from time to time. 

                        "Series 2004-2
Repurchase Amount" is defined in Section 6.1. 

                        "Series 2004-2
Required AESOP I Operating Lease Vehicle Amount" means, as of any date of determination, the sum of the
Series 2004-2 Invested Amount and the Series 2004-2 Required Overcollateralization Amount as of such date. 

                        "Series 2004-2
Required Enhancement Amount" means, as of any date of determination, the sum of (i) the product of the
Series 2004-2 Required Enhancement Percentage as of such date and the Series 2004-2 Invested Amount as of such date, (ii) the
Series 2004-2 AESOP I Operating Lease Vehicle Percentage as of the immediately preceding Business Day of the excess, if any, of the Non-Program Vehicle Amount as of such
date over the Series 2004-2 Maximum Non-Program Vehicle Amount as of such date, (iii) the Series 2004-2 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 2004-2 Maximum Mitsubishi Amount as of such date, (iv) the Series 2004-2 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 2004-2 Maximum Individual Kia/Isuzu/Subaru/ Hyundai/Suzuki Amount as of such date, (v) the Series 2004-2 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 2004-2 Maximum Aggregate Kia/Isuzu/Subaru/Hyundai/Suzuki Amount as of such date, (vi) the
Series 2004-2 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 2004-2 Maximum Specified States Amount as of such date and (vii) the Series 2004-2 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 2004-2 Maximum Non-Eligible
Manufacturer Amount as of such date. 

                        "Series 2004-2
Required Enhancement Percentage" means, as of any date of determination, the sum of (i) the product of
(A) 14.55% times (B) the Series 2004-2 Program Vehicle Percentage as of such date and (ii) the product of (A) the Series 2004-2
Required Non-Program Enhancement Percentage as of such date times (B) the Series 2004-2 Non-Program Vehicle Percentage as of such date. 

                        "Series 2004-2
Required Liquidity Amount" means, with respect to any Distribution Date, an amount equal to 3.0% of the
Series 2004-2 Invested Amount on such Distribution Date (after giving effect to any payments of principal to be made on the Series 2004-2 Notes on such
Distribution Date). 

                        "Series 2004-2
Required Non-Program Enhancement Percentage" means, as of any date of determination, the greater of
(a) 20.15% and (b) the sum of (i) 20.15% and (ii) the 

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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 2004-2
Required Overcollateralization Amount" means, as of any date of determination, the excess, if any, of the
Series 2004-2 Required Enhancement Amount over the sum of (i) the Series 2004-2 Letter of Credit Amount as of such date, (ii) the
Series 2004-2 Available Reserve Account Amount on such date and (iii) the amount of cash and Permitted Investments on deposit in the Series 2004-2
Collection Account (not including amounts allocable to the Series 2004-2 Accrued Interest Account) and the Series 2004-2 Excess Collection Account on such date. 

                        "Series 2004-2
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 2004-2 Required Liquidity Amount on such Distribution Date over the Series 2004-2 Letter of Credit Liquidity Amount
on such Distribution Date (after giving effect to any payments of principal to be made on the Series 2004-2 Notes on such Distribution Date) and (b) the excess, if any, of
the Series 2004-2 Required Enhancement Amount over the Series 2004-2 Enhancement Amount (excluding therefrom the Series 2004-2 Available
Reserve Account Amount and calculated after giving effect to any payments of principal to be made on the Series 2004-2 Notes) on such Distribution Date. 

                        "Series 2004-2
Reserve Account" is defined in Section 2.7(a). 

                        "Series 2004-2
Reserve Account Collateral" is defined in Section 2.7(d). 

                        "Series 2004-2
Reserve Account Surplus" means, with respect to any Distribution Date, the excess, if any, of the
Series 2004-2 Available Reserve Account Amount over the Series 2004-2 Required Reserve Account Amount on such Distribution Date. 

                        "Series 2004-2
Revolving Period" means, the period from and including the Series 2004-2 Closing Date to the earlier of
(i) the commencement of the Three-Year Notes Controlled Amortization Period and (ii) the commencement of the Series 2004-2 Rapid Amortization Period;
provided that if the Class A-1 Notes and the Class A-2 Notes are paid in full on or prior to the April 2007 Distribution Date, then the
Series 2004-2 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 and the Class A-2 Notes are paid in full occurs to the earlier of (i) the commencement of the Class A-3 Controlled
Amortization Period and (ii) the commencement of the Series 2004-2 Rapid Amortization Period. 

                        "Series 2004-2
Shortfall" is defined in Section 2.3(g). 

                        "Series 2004-2
Termination Date" means the April 2010 Distribution Date. 

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                        "Series 2004-2
Trustee's Fees" means, for any Distribution Date during the Series 2004-2 Rapid Amortization Period on
which there exists a Series 2004-2 Lease Interest Payment Deficit, an amount equal to the lesser of (x) the product of (i) the Series 2004-2
Percentage as of the beginning of the Series 2004-2 Interest Period ending on the day preceding such Distribution Date and (ii) the fees owing to the Trustee under the
Indenture as of such date and (y) the excess, if any, of (A) an amount equal to 1.1% of the Series 2004-2 Required AESOP I Operating Lease Vehicle Amount as of
the last day of the Series 2004-2 Revolving Period over (B) the sum of the Series 2004-2 Trustee Fees for all Distribution Dates preceding such
Distribution Date. 

                        "Series 2004-2
Unpaid Demand Amount" means, with respect to any single draw pursuant to Section 2.5(c) or (d) on the
Series 2004-2 Letters of Credit, the aggregate amount drawn by the Trustee on all Series 2004-2 Letters of Credit. 

                        "Shadow
Rating" means the rating of the Series 2004-2 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. 

                        "Surety
Bond" means the Note Guaranty Insurance Policy No. 04030001, dated February 18, 2004, 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 Financial Guaranty Insurance Company, a New York stock insurance company. The Surety Provider shall constitute an "Enhancement
Provider" with respect to the Series 2004-2 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. 

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

                        "Temporary
Global Class A-3 Note" is defined in Section 5.2. 

                        "Termination
Date Disbursement" means an amount drawn under a Series 2004-2 Letter of Credit pursuant to a Certificate of Termination
Date Demand. 

                        "Termination
Disbursement" means an amount drawn under a Series 2004-2 Letter of Credit pursuant to a Certificate of Termination Demand. 

                        "Three-Year
Notes Controlled Amortization Period" means the period commencing at the opening of business on October 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 2004-2 Rapid Amortization
Period, (ii) the date on which the Class A-1 Notes and the Class A-2 Notes are fully paid and (iii) the termination of the Indenture. 

                        "Three-Year
Notes Expected Final Distribution Date" means the April 2007 Distribution Date. 

                        "Three-Year
Notes Final Distribution Date" means the April 2008 Distribution Date. 

                        "Trustee"
is defined in the recitals hereto. 

                        "Unpaid
Demand Note Disbursement" means an amount drawn under a Series 2004-2 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 2004-2 Maximum Amount. 

                        "Waiver
Request" is defined in Article IV. 

 
 

ARTICLE II    
    

 
  SERIES 2004-2 ALLOCATIONS    
    

                        With respect to the Series 2004-2 Notes, the following shall apply: 

                        Section 2.1    Establishment
of Series 2004-2 Collection Account, Series 2004-2 Excess Collection Account and
Series 2004-2 Accrued Interest Account.    (a)    All Collections allocable to the Series 2004-2 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 2004-2 Noteholders, each
Series 2004-2 Interest Rate Swap Counterparty and the Surety Provider: the Series 2004-2 Collection Account (such sub-account, the
"Series 2004-2 Collection Account"), the Series 2004-2 Excess Collection 

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Account
(such sub-account, the "Series 2004-2 Excess Collection Account") and the Series 2004-2 Accrued Interest Account
(such sub-account, the "Series 2004-2 Accrued Interest Account"). 

                        Section 2.2    Allocations
with Respect to the Series 2004-2 Notes.    The net proceeds from the initial sale
of the Series 2004-2 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 2004-2 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 2004-2 Revolving Period.    During the
Series 2004-2 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 2004-2 Deposit Date, all amounts deposited into the Collection Account as set forth below: 

          (i)  allocate
to the Series 2004-2 Collection Account an amount equal to the sum of (A) the Series 2004-2 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 2004-2 Interest
Rate Swaps. All such amounts allocated to the Series 2004-2 Collection Account shall be further allocated to the Series 2004-2 Accrued Interest Account; and 

         (ii)  allocate
to the Series 2004-2 Excess Collection Account an amount equal to the Series 2004-2 Invested Percentage (as of such day)
of the aggregate amount of Principal Collections on such day (for any such day, the "Series 2004-2 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 2004-2 Controlled Amortization Period.    With respect to any
Series 2004-2 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 2004-2 Deposit Date, all amounts deposited into the Collection Account as set forth below: 

          (i)  allocate
to the Series 2004-2 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 2004-2 Accrued Interest Account; and 

         (ii)  (A)
with respect to the Three-Year Notes Controlled Amortization Period, allocate to the Series 2004-2 Collection Account an amount equal
to the Series 2004-2 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; provided, however, that if the Monthly Total Principal Allocation exceeds the sum of the
Class A-1 Controlled Distribution Amount and the Class A-2 Controlled Distribution Amount, then the amount of such excess shall be allo- 

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cated
to the Series 2004-2 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-3 Controlled Amortization Period, allocate to the
Series 2004-2 Collection Account an amount equal to the Series 2004-2 Principal Allocation for such day, which amount shall be used to make principal payments in
respect of the Class A-3 Notes; provided, however, that if the Monthly Total Principal Allocation
exceeds the Class A-3 Controlled Distribution Amount, then the amount of such excess shall be allocated to the Series 2004-2 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 2004-2 Rapid Amortization Period. With respect to the
Series 2004-2 Rapid Amortization Period and thereafter, 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 2004-2 Deposit Date, all
amounts deposited into the Collection Account as set forth below: 

          (i)  allocate
to the Series 2004-2 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 2004-2 Accrued Interest Account; and 

         (ii)  allocate
to the Series 2004-2 Collection Account an amount equal to the Series 2004-2 Principal Allocation for such day, which
amount shall be used to make principal payments in respect of the Class A-1 Notes, the Class A-2 Notes and the Class A-3 Notes, ratably,
without preference or priority of any kind, until the Series 2004-2 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 2004-2 Notes, any amounts payable to the
Trustee in respect of the Series 2004-2 Interest Rate Swaps and other amounts available pursuant to Section 2.3 to pay Series 2004-2 Adjusted Monthly
Interest and the Fixed Rate Payment, if any, on the next succeeding Distribution Date will be less than the sum of the Series 2004-2 Adjusted Monthly Interest and the Fixed Rate
Payment, if any, for such Distribution Date and (B) the Series 2004-2 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 2004-2 Notes during the Related Month equal to the lesser of such insufficiency and the
Series 2004-2 Enhancement Amount to the Series 2004-2 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 

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Series 2004-2
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 2004-2 Collection Account an amount equal to the sum of (A) the Series 2004-2 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 2004-2 Interest Rate Swaps on such day. All such amounts allocated to the
Series 2004-2 Collection Account shall be further allocated to the Series 2004-2 Accrued Interest Account; 

         (ii)  allocate
to the Series 2004-2 Collection Account an amount equal to the Series 2004-2 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, the Class A-2 Notes and the Class A-3 Notes, ratably, without preference or
priority of any kind, until the Series 2004-2 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 2004-2 Notes, any amounts payable to the Trustee in respect of
Series 2004-2 Interest Rate Swaps and other amounts available pursuant to Section 2.3 to pay Series 2004-2 Adjusted Monthly Interest and the Fixed Rate
Payment, if any, on the next succeeding Distribution Date will be less than the sum of the Series 2004-2 Adjusted Monthly Interest and the Fixed Rate Payment, if any, for such
Distribution Date and (B) the Series 2004-2 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 2004-2 Notes during the Related Month equal to the lesser of such insufficiency and the Series 2004-2 Enhancement
Amount to the Series 2004-2 Accrued Interest Account to be treated as Interest Collections on such Distribution Date. 

            (e)   Series 2004-2
Excess Collection Account. Amounts allocated to the Series 2004-2 Excess Collection
Account on any Series 2004-2 Deposit Date will be (w) first, deposited in the Series 2004-2 Reserve Account in an amount up to the excess, if any, of the
Series 2004-2 Required Reserve Account Amount for such date over the Series 2004-2 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 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 

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financing
thereunder; provided, however, that in the case of clauses (x), (y) and (z), that no Amortization Event,
Series 2004-2 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 2004-2 Excess Collection Account will be withdrawn by the Trustee, deposited in the Series 2004-2 Collection Account and
allocated as Principal Collections to reduce the Series 2004-2 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 2004-2 Notes (i) during the Series 2004-2 Revolving Period shall be allocated to the Series 2004-2 Excess Collection Account and
applied in accordance with Section 2.2(e) and (ii) during the Series 2004-2 Controlled Amortization Period or the Series 2004-2 Rapid Amortization
Period shall be allocated to the Series 2004-2 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 2004-2 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 2004-2 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 2004-2 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 2004-2 Collection Account an amount equal to the Series 2004-2 Invested Percentage as of the
date of the occurrence of such Series 2004-2 Lease Payment Deficit of the Collections attributable to such Past Due Rent Payment (the "Series 2004-2
Past Due Rent Payment"). The Administrator shall instruct the Trustee in writing pursuant to the Administration Agreement to withdraw from the Series 2004-2
Collection Account and apply the Series 2004-2 Past Due Rent Payment in the following order: 

          (i)  if
the occurrence of such Series 2004-2 Lease Payment Deficit resulted in one or more Lease Deficit Disbursements being made under the
Series 2004-2 Letters of Credit, pay to each Series 2004-2 Letter of Credit Provider who made such a Lease Deficit Disbursement for application in accordance with
the provisions of the applicable Series 2004-2 Reimbursement Agreement an amount equal to the lesser of (x) the unreimbursed amount of such Series 2004-2
Letter of Credit Provider's Lease Deficit Disbursement and (y) such Series 2004-2 Letter of Credit Provider's Pro Rata Share of the Series 2004-2 Past Due
Rent Payment; 

         (ii)  if
the occurrence of such Series 2004-2 Lease Payment Deficit resulted in a withdrawal being made from the Series 2004-2 Cash
Collateral Account, deposit in the Series 2004-2 Cash Collateral Account an amount equal to the lesser of (x) the amount of the Series 2004-2 Past Due Rent
Payment remaining after any payment pursuant to clause (i) above and (y) the amount withdrawn from the Series 2004-2 Cash Collateral Account on account of such
Series 2004-2 Lease Payment Deficit; 

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        (iii)  if
the occurrence of such Series 2004-2 Lease Payment Deficit resulted in a withdrawal being made from the Series 2004-2 Reserve
Account pursuant to Section 2.3(d), deposit in the Series 2004-2 Reserve Account an amount equal to the lesser of (x) the amount of the
Series 2004-2 Past Due Rent Payment remaining after any payments pursuant to clauses (i) and (ii) above and (y) the excess, if any, of the
Series 2004-2 Required Reserve Account Amount over the Series 2004-2 Available Reserve Account Amount on such day; 

        (iv)  allocate
to the Series 2004-2 Accrued Interest Account the amount, if any, by which the Series 2004-2 Lease Interest Payment
Deficit, if any, relating to such Series 2004-2 Lease Payment Deficit exceeds the amount of the Series 2004-2 Past Due Rent Payment applied pursuant to clauses
(i), (ii) and (iii) above; and 

         (v)  treat
the remaining amount of the Series 2004-2 Past Due Rent Payment as Principal Collections allocated to the Series 2004-2 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 and Each Series 2004-2 Interest Rate Swap Counterparty.    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 2004-2 Interest Rate Swap Proceeds and Interest Collections processed since the preceding Distribution Date and allocated to the holders of the
Series 2004-2 Notes. 

                        (a)    Note
Interest with respect to the Series 2004-2 Notes and Payments on the Series 2004-2 Interest Rate
Swaps.    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 2004-2 Accrued Interest Account to the extent funds are anticipated to be available from Interest Collections allocable to the Series 2004-2 Notes and the
Series 2004-2 Interest Rate Swap Proceeds processed from but not including the preceding Distribution Date through the succeeding Distribution Date in respect of (w) first,
an amount equal to the Series 2004-2 Monthly Interest for the Series 2004-2 Interest Period ending on the day preceding the related Distribution Date,
(x) second, an amount equal to the Fixed Rate Payment for the next succeeding Distribution Date, (y) third, an amount equal to the amount of any unpaid Series 2004-2
Shortfall as of the preceding Distribution Date (together with any accrued interest on such Series 2004-2 Shortfall) and (z) fourth, an amount equal to the Surety Provider
Fee for such Series 2004-2 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 2004-2 Accrued Interest Account and deposit such amounts in the
Series 2004-2 Distribution Account. 

                        (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 

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Provider
of the amount of any Series 2004-2 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 2004-2 Letters of Credit For Series 2004-2 Lease Interest Payment
Deficits.    If the Administrator determines on any Distribution Date that there exists a Series 2004-2 Lease Interest Payment Deficit, the Administrator
shall instruct the Trustee in writing to draw on the Series 2004-2 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 2004-2 Lease Interest Payment Deficit, (ii) the excess, if any, of the sum of
(A) the sum of the amounts described in clauses (w), (x), (y) and (z) of Section 2.3(a) above on such Distribution Date and (B) during the
Series 2004-2 Rapid Amortization Period, the Series 2004-2 Trustee's Fees for such Distribution Date, over the amounts available from the
Series 2004-2 Accrued Interest Account and (iii) the Series 2004-2 Letter of Credit Liquidity Amount on the Series 2004-2 Letters of
Credit by presenting to each Series 2004-2 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 2004-2 Distribution Account on such Distribution Date; provided,
however, that if the Series 2004-2 Cash Collateral Account has been established and funded, the Trustee shall withdraw from the
Series 2004-2 Cash Collateral Account and deposit in the Series 2004-2 Distribution Account an amount equal to the lesser of (x) the
Series 2004-2 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 2004-2 Available
Cash Collateral Account Amount on such Distribution Date and draw an amount equal to the remainder of such amount on the Series 2004-2 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 2004-2 Letters of Credit. 

                        (d)    Withdrawals
from Series 2004-2 Reserve Account.    If the Administrator determines on any Distribution Date
that the amounts available from the Series 2004-2 Accrued Interest Account plus the amount, if any, to be drawn under the
Series 2004-2 Letters of Credit and /or withdrawn from the Series 2004-2 Cash Collateral Account pursuant to Section 2.3(c) are insufficient to pay the sum
of (A) the sum of the amounts described in clauses (w), (x), (y) and (z) of Section 2.3(a) above on such Distribution Date and (B) during the
Series 2004-2 Rapid Amortization Period, the Series 2004-2 Trustee's Fees for such Distribution Date, the Administrator shall instruct the Trustee in writing to
withdraw from the Series 2004-2 Reserve Account and deposit in the Series 2004-2 Distribution Account on such Distribution Date an amount equal to the lesser of
the Series 2004-2 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 2004-2 Reserve Account. The Trustee shall withdraw such amount from the Series 2004-2 Reserve Account and deposit such amount in the
Series 2004-2 Distribution Account. 

                        (e)    Surety
Bond.    If the Administrator determines on any Distribution Date that the sum of the amounts available from the
Series 2004-2 Accrued Interest Account plus the amount, if any, to be drawn under the Series 2004-2 Letters of Credit and/or to be
withdrawn from the Series 2004-2 Cash Collateral Account pursuant to Section 2.3(c) above plus the amount, if any, to be withdrawn from the
Series 2004-2 Reserve Account pursuant to Section 2.3(d) above is insufficient to pay the Series 2004-2 Adjusted Monthly Interest for such 

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Distribution
Date, the Administrator shall instruct the Trustee in writing to make a demand on 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 2004-2 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 2004-2 Accrued Interest Account and the Series 2004-2 Distribution Account, plus the amount, if any, drawn under the
Series 2004-2 Letters of Credit and/or withdrawn from the Series 2004-2 Cash Collateral Account pursuant to Section 2.3(c)
plus the amount, if any, withdrawn from the Series 2004-2 Reserve Account pursuant to Section 2.3(d) as follows: 

            (i)    on
each Distribution Date during the Series 2004-2 Revolving Period or a Series 2004-2 Controlled Amortization Period,
(1) first, to each Series 2004-2 Interest Rate Swap Counterparty, an amount equal to the portion, if any, of the Fixed Rate Payment for such Distribution Date due and owing
to such Series 2004-2 Interest Rate Swap Counterparty, (2) second, to the Surety Provider, in an amount equal to (x) the Surety Provider Fee for the related
Series 2004-2 Interest Period and, without duplication, (y) any Surety Provider Reimbursement Amounts then due and owing, (3) third, to the Administrator, an amount
equal to the Series 2004-2 Percentage as of the beginning of the Series 2004-2 Interest Period ending on the day preceding such Distribution Date of the portion
of the Monthly Administration Fee payable by AFC-II (as specified in clause (iii) of the definition thereof) for such Series 2004-2 Interest Period,
(4) fourth, to the Trustee, an amount equal to the Series 2004-2 Percentage as of the beginning of such Series 2004-2 Interest Period of the fees owing to
the Trustee under the Indenture for such Series 2004-2 Interest Period, (5) fifth, 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 2004-2 Percentage as of the beginning of such Series 2004-2 Interest Period of such Carrying Charges
(other than Carrying Charges provided for above) for such Series 2004-2 Interest Period, (6) sixth, to each Series 2004-2 Interest Rate Swap Counterparty,
any amounts due and owing under the applicable Series 2004-2 Interest Rate Swap (other than any amount included in the Fixed Rate Payment) and (7) seventh, the balance, if
any ("Excess Collections"), shall be withdrawn by the Paying Agent from the Series 2004-2 Collection Account and deposited in the
Series 2004-2 Excess Collection Account; and 

            (ii)   on
each Distribution Date during the Series 2004-2 Rapid Amortization Period, (1) first, to each Series 2004-2 Interest
Rate Swap Counterparty, an amount equal to the portion, if any, of the Fixed Rate Payment for such Distribution Date due and owing to such Series 2004-2 Interest Rate Swap
Counterparty, (2) second, to the Surety Provider, in an amount equal to (x) the Surety Provider Fee for the related Series 2004-2 Interest Period and, without
duplication, (y) any Surety Provider Reimbursement Amounts then due and owing, (3) third, to the Trustee, an amount equal to the Series 

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2004-2
Percentage as of the beginning of the Series 2004-2 Interest Period ending on the day preceding such Distribution Date of the fees owing to the Trustee under the
Indenture for such Series 2004-2 Interest Period, (4) fourth, to the Administrator, an amount equal to the Series 2004-2 Percentage as of the beginning of
such Series 2004-2 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 2004-2 Interest Period, (5) fifth, 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 2004-2 Percentage as of the beginning of such Series 2004-2 Interest Period of such Carrying Charges (other than Carrying Charges
provided for above) for such Series 2004-2 Interest Period, (6) sixth, so long as the Series 2004-2 Invested Amount is greater than the Monthly Total
Principal Allocations for the Related Month, an amount equal to the excess of the Series 2004-2 Invested Amount over the Monthly Total Principal Allocations for the Related Month
shall be treated as Principal Collections and (7) seventh, to each Series 2004-2 Interest Rate Swap Counterparty, any amounts due and owing under the applicable
Series 2004-2 Interest Rate Swap (other than any amount included in the Fixed Rate Payment). 

                        (g)    Shortfalls.    If
the amounts described in Section 2.3 are insufficient to pay the Series 2004-2
Monthly Interest on any Distribution Date, payments of interest to the Series 2004-2 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 2004-2 Shortfall." Interest shall accrue on the portion of the Series 2004-2 Shortfall allocable to the
Class A-1 Notes at the Class A-1 Note Rate, on the portion of the Series 2004-2 Shortfall allocable to the Class A-2 Notes
at the Class A-2 Note Rate and on the portion of the Series 2004-2 Shortfall allocable to the Class A-3 Notes at the
Class A-3 Note Rate. 

                        (h)    Listing
Information Requirement.    From the time of the Administrator's written notice to the Trustee that the
Class A-2 Notes and/or the Class A-3 Notes are listed on the Luxembourg Stock Exchange until the Administrator shall give the Trustee written notice that the
Class A-2 Notes and/or Class A-3 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 and/or the Class A-3 Note Rate, as applicable, for the next succeeding Series 2004-2 Interest Period, the number of days in
such Series 2004-2 Interest Period, the Distribution Date for such Series 2004-2 Interest Period and the amount of interest payable on the
Class A-2 Notes and/or the Class A-3 Notes, as applicable, 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 2004-2 Noteholders from the Series 2004-2 Distribution Account
the
amount due to the Series 2004-2 Noteholders deposited in the Series 2004-2 Distribution Account pursuant to Section 2.3. 

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                        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 Three-Year Notes Controlled Amortization Period or the
Class A-3 Controlled Amortization Period, as the case may be, or the first Determination Date after the commencement of the Series 2004-2 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 2004-2 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 2004-2 Demand Notes and/or on the Series 2004-2 Letters of Credit (or withdrawn from the Series 2004-2 Cash Collateral
Account), (iii) any amounts to be withdrawn from the Series 2004-2 Reserve Account and deposited into the Series 2004-2 Distribution Account and
(iv) the amount of any demand on the Surety Bond in accordance with the terms thereof. On the Distribution Date following each such Determination Date, the Trustee shall withdraw the amount
allocated to the Series 2004-2 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 2004-2 Collection Account and deposit such amount in the Series 2004-2 Distribution Account, to be paid to the holders of the
Series 2004-2 Notes. 

                        (b)    Principal
Draws on Series 2004-2 Letters of Credit.    If the Administrator determines on any Distribution
Date during the Series 2004-2 Rapid Amortization Period that there exists a Series 2004-2 Lease Principal Payment Deficit, the Administrator shall instruct the
Trustee in writing to draw on the Series 2004-2 Letters of Credit, if any, as provided below; provided, however, that the
Administrator shall not instruct the Trustee to draw on the Series 2004-2 Letters of Credit in respect of a Series 2004-2 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 2004-2 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 2004-2 Lease Principal Payment Deficit and (ii) the
Series 2004-2 Letter of Credit Liquidity Amount on the Series 2004-2 Letters of Credit by presenting to each Series 2004-2 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 2004-2 Distribution Account on
such Distribution Date; provided, however, that if the Series 2004-2 Cash Collateral Account has been established and
funded, the Trustee shall withdraw from the Series 2004-2 Cash
Collateral Account and deposit in the Series 2004-2 Distribution Account an amount equal to the lesser of (x) the Series 2004-2 Cash Collateral Percentage
on such Distribution Date of the Series 2004-2 Lease Principal Payment Deficit and (y) the Series 2004-2 Available Cash Collateral Account Amount on such
Distribution Date and draw an amount equal to the remainder of such amount on the Series 2004-2 Letters of Credit. 

                        (c)    Final
Distribution Date.    The entire Class A-1 Invested Amount and the entire Class A-2
Invested Amount shall be due and payable on the Three-Year Notes Final Distribution Date, and the entire Class A-3 Invested Amount shall be due and payable on the
Class A-3 Final Distribution Date. In connection therewith: 

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            (i)    Demand
Note Draw.    If the amount to be deposited in the Series 2004-2 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 and the
Class A-2 Notes on the Three-Year Notes Final Distribution Date, or the Class A-3 Notes on the Class A-3 Final Distribution Date,
as the case may be, is less than the sum of the Class A-1 Invested Amount and the Class A-2 Invested Amount, or the Class A-3 Invested Amount,
as the case may be, and there are any Series 2004-2 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 2004-2 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 2004-2
Demand Notes in an amount equal to the lesser of (i) such insufficiency and (ii) the Series 2004-2 Letter of Credit Amount. The Trustee shall, prior to 12:00 noon (New
York City time) on the second Business Day preceding such Series 2004-2 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 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 2004-2 Demand Notes to be deposited into the Series 2004-2 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 2004-2 Distribution Account the amount specified in such
Demand Notice in whole or in part or (y) due to the occurrence of an Event of Bankruptcy (or the occurrence of an event described in clause (a) of the definition thereof, without the
lapse of a period of 60 consecutive days) with respect to one or more of the Demand Note Issuers, the Trustee shall not have delivered such Demand Notice to any Demand Note Issuer on the second
Business Day preceding such Series 2004-2 Final Distribution Date, then, in the case of (x) or (y) the Trustee shall draw on the Series 2004-2
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 2004-2 Demand Notes (or, the amount that the Trustee failed to demand for payment thereunder) and (b) the Series 2004-2 Letter of Credit Amount on
such Business Day by presenting to each Series 2004-2 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 2004-2 Cash Collateral Account has been established and funded, the Trustee
shall withdraw from the Series 2004-2 Cash Collateral Account and deposit in the Series 2004-2 Distribution Account an amount equal to the lesser of
(x) the Series 2004-2 Cash Collateral Percentage on such Business Day of the amount that the Demand Note Issuers failed to pay under the Series 2004-2
Demand Notes (or, the amount that the Trustee failed to demand for payment thereunder) and (y) the Series 2004-2 Available 

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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 2004-2 Demand
Notes (or, the amount that the Trustee failed to demand for payment thereunder) on the Series 2004-2 Letters of Credit. The Trustee shall deposit, or cause the deposit of, the
proceeds of any draw on the Series 2004-2 Letters of Credit and the proceeds of any withdrawal from the Series 2004-2 Cash Collateral Account to be deposited in
the Series 2004-2 Distribution Account. 

            (iii)  Reserve
Account Withdrawal.    If, after giving effect to the deposit into the Series 2004-2 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 2004-2 Distribution Account with respect to a Series 2004-2 Final Distribution Date is or will be less than the sum of the
Class A-1 Invested Amount and the Class A-2 Invested Amount, or the Class A-3 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 2004-2 Final Distribution Date, the Administrator shall instruct the Trustee in writing to withdraw from the
Series 2004-2 Reserve Account, an amount equal to the lesser of the
Series 2004-2 Available Reserve Account Amount and such remaining insufficiency and deposit it in the Series 2004-2 Distribution Account on such
Series 2004-2 Final Distribution Date. 

            (iv)  Demand
on Surety Bond.    If after giving effect to the deposit into the Series 2004-2 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 2004-2 Distribution Account with respect to such Series 2004-2 Final Distribution Date is or will be less than the sum of the
Class A-1 Outstanding Principal Amount and the Class A-2 Outstanding Principal Amount, or the Class A-3 Outstanding Principal Amount, as the
case may be, 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 such
insufficiency in accordance with the terms thereof and shall cause the proceeds thereof to be deposited in the Series 2004-2 Distribution Account. 

                        (d)    Principal
Deficit Amount.    On each Distribution Date, other than the Three-Year Notes Final Distribution Date and
the Class A-3 Final Distribution Date, on which the Principal Deficit Amount is greater than zero, amounts shall be transferred to the Series 2004-2 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 2004-2 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 2004-2 Letter of Credit Amount. The Trustee shall,
prior to 12:00 noon (New York City time) on the second Business Day preceding such 

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Distribution
Date, deliver such Demand Notice to the Demand Note Issuers; provided, however, that if an Event of Bankruptcy (or the occurrence
of an event described in clause (a) of the definition thereof, without the lapse of a period of 60 consecutive days) with respect to a Demand Note Issuer shall have occurred and be continuing,
the Trustee shall not be required to deliver such Demand Notice to such Demand Note Issuer. The Trustee shall cause the proceeds of any demand on the
Series 2004-2 Demand Note to be deposited into the Series 2004-2 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 2004-2 Distribution Account the amount
specified in such Demand Notice in whole or in part or (y) due to the occurrence of an Event of Bankruptcy (or the occurrence of an event described in clause (a) of the definition
thereof, without the lapse of a period of 60 consecutive days) with respect to any Demand Note Issuer, the Trustee shall not have delivered such Demand Notice to any Demand Note Issuer on the second
Business Day preceding such Distribution Date, then, in the case of (x) or (y) the Trustee shall on such Business Day draw on the Series 2004-2 Letters of Credit an
amount equal to the lesser of (i) Series 2004-2 Letter of Credit Amount and (ii) the aggregate amount that the Demand Note Issuers failed to pay under the
Series 2004-2 Demand Notes (or, the amount that the Trustee failed to demand for payment thereunder) by presenting to each Series 2004-2 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 2004-2 Cash Collateral Account has been established and funded, the Trustee shall withdraw from the Series 2004-2 Cash Collateral Account and deposit in
the Series 2004-2 Distribution Account an amount equal to the lesser of (x) the Series 2004-2 Cash Collateral Percentage on such Business Day of the
aggregate amount that the Demand Note Issuers failed to pay under the Series 2004-2 Demand Notes (or, the amount that the Trustee failed to demand for payment thereunder) and
(y) the Series 2004-2 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 2004-2 Demand Notes (or, the amount that the Trustee failed to demand for payment thereunder) on the Series 2004-2 Letters
of Credit. The Trustee shall deposit into, or cause the deposit of, the proceeds of any draw on the Series 2004-2 Letters of Credit and the proceeds of any withdrawal from the
Series 2004-2 Cash Collateral Account to be deposited in the Series 2004-2 Distribution Account. 

            (iii)  Reserve
Account Withdrawal.    If the Series 2004-2 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 2004-2 Reserve Account, an amount equal to the lesser of (x) the Series 2004-2 Available Reserve Account Amount and
(y) the amount by which the Principal Deficit Amount exceeds the amounts to be deposited in the Series 2004-2 Distribution Account in accordance with clauses (i) and
(ii) of this Section 2.5(d) and deposit it in the Series 2004-2 Distribution Account on such Distribution Date. 

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                (iv)    Demand
on Surety Bond. If the sum of the Series 2004-2 Letter of Credit Amount and the
Series 2004-2 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 2004-2 Distribution Account. 

                        (e)    Distribution.    On
each Distribution Date occurring on or after the date a withdrawal is made from the
Series 2004-2 Collection Account pursuant to Section 2.5(a) or amounts are deposited in the Series 2004-2 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,
Class A-2 Noteholder or Class A-3 Noteholder, as applicable, from the Series 2004-2 Distribution Account the amount deposited therein pursuant
to Section 2.5(a), (b), (c) or (d), to the extent necessary to pay the sum of the Class A-1 Controlled Amortization Amount and the Class A-2
Controlled Amortization Amount during the Three-Year Notes Controlled Amortization Period or the Class A-3 Controlled Amortization Amount during the
Class A-3 Controlled Amortization Period, as the case may be, or to the extent necessary to pay the Class-A-1 Invested Amount, the
Class A-2 Invested Amount and the Class A-3 Invested Amount during the Series 2004-2 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-2004-2
Reserve Account.    (a)    Establishment of
Series 2004-2 Reserve Account. AFC-II shall establish and maintain in the name of the Series 2004-2 Agent for the benefit of the
Series 2004-2
Noteholders, each Series 2004-2 Interest Rate Swap Counterparty and the Surety Provider, or cause to be established and maintained, an account (the
"Series 2004-2 Reserve Account"), bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the
Series 2004-2 Noteholders, each Series 2004-2 Interest Rate Swap Counterparty and the Surety Provider. The Series 2004-2 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 2004-2 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 30 days of such reduction, establish a new Series 2004-2 Reserve Account with a new Qualified 

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Institution.
If the Series 2004-2 Reserve Account is not maintained in accordance with the previous sentence, AFC-II shall establish a new
Series 2004-2 Reserve Account, within ten (10) Business Days after obtaining knowledge of such fact, which complies with such sentence, and shall instruct the
Series 2004-2 Agent in writing to transfer all cash and investments from the non-qualifying Series 2004-2 Reserve Account into the new
Series 2004-2 Reserve Account. Initially, the Series 2004-2 Reserve Account will be established with The Bank of New York. 

                        (b)    Administration
of the Series 2004-2 Reserve Account.    The Administrator may instruct the institution
maintaining the Series 2004-2 Reserve Account to invest funds on deposit in the Series 2004-2 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 2004-2 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 2004-2
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
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 2004-2 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 2004-2 Reserve Account shall remain uninvested. 

                        (c)    Earnings
from Series 2004-2 Reserve Account.    All interest and earnings (net of losses and investment
expenses) paid on funds on deposit in the Series 2004-2 Reserve Account shall be deemed to be on deposit therein and available for distribution. 

                        (d)    Series 2004-2
Reserve Account Constitutes Additional Collateral for Series 2004-2
Notes.    In order to secure and provide for the repayment and payment of the AFC-II Obligations with respect to the Series 2004-2 Notes,
AFC-II hereby grants a security interest in and assigns, pledges, grants, transfers and sets over to the Series 2004-2 Agent, for the benefit of the
Series 2004-2 Noteholders, each Series 2004-2 Interest Rate Swap Counterparty 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 2004-2 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 2004-2 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 2004-2 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 2004-2 Reserve Account, the 

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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 2004-2 Reserve Account Collateral"). The
Series 2004-2 Agent shall possess all right, title and interest in and to all funds on deposit from time to time in the Series 2004-2 Reserve Account and in all
proceeds thereof, and shall be the only person authorized to originate entitlement orders in respect of the Series 2004-2 Reserve Account. The Series 2004-2
Reserve Account Collateral shall be under the sole dominion and control of the Series 2004-2 Agent for the benefit of the Series 2004-2 Noteholders, each
Series 2004-2 Interest Rate Swap Counterparty and the Surety Provider. The Series 2004-2 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 2004-2 Reserve Account; (ii) that each item of property (whether investment
property, financial asset, security, instrument or cash) credited to the Series 2004-2 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. 

                        (e)    Series 2004-2
Reserve Account Surplus.    In the event that the Series 2004-2 Reserve
Account Surplus on any Distribution Date, after giving effect to all withdrawals from the Series 2004-2 Reserve Account, is greater than zero, if no Series 2004-2
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 2004-2
Reserve Account an amount equal to the Series 2004-2 Reserve Account Surplus and shall pay such amount to AFC-II. 

                        (f)    Termination
of Series 2004-2 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 2004-2 Noteholders and to the Surety Provider and payable from the Series 2004-2 Reserve Account as provided herein, shall withdraw from the
Series 2004-2 Reserve Account all amounts on deposit therein for payment to AFC-II. 

                        Section 2.8    Series 2004-2
Letters of Credit and Series 2004-2 Cash Collateral
Account.    (a)    Series 2004-2 Letters of Credit and Series 2004-2 Cash Collateral Account Constitute Additional Collateral
for Series 2004-2 Notes. In order to secure and provide for the repayment and payment of the AFC-II Obligations with respect to the Series 2004-2
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 2004-2
Noteholders, each Series 2004-2 Interest Rate Swap Counterparty 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 2004-2 Letter of Credit; (ii) the Series 2004-2 Cash Collateral Account, including any security
entitlement thereto; (iii) all funds on deposit in the Series 2004-2 Cash Collateral Account from time to time; (iv) all certificates and instruments, if any,
representing or evidencing any or all of the Series 2004-2 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 2004-2 Cash Collateral Account, whether constituting securities, instruments, general intangibles, investment 

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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 2004-2 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 2004-2 Cash Collateral Account Collateral"). The Trustee shall, for the benefit of the Series 2004-2
Noteholders, each Series 2004-2 Interest Rate Swap Counterparty and the Surety Provider, maintain possession of the Series 2004-2 Letter of Credit, possess all
right, title and interest in all funds on deposit from time to time in the Series 2004-2 Cash Collateral Account and in all proceeds thereof, and shall be the only person authorized
to originate entitlement orders in respect of the Series 2004-2 Cash Collateral Account. The Series 2004-2 Cash Collateral Account shall be under the sole
dominion and control of the Trustee for the benefit of the Series 2004-2 Noteholders, each Series 2004-2 Interest Rate Swap Counterparty and the Surety Provider.
The Series 2004-2 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 2004-2 Cash Collateral Account; (ii) that each item of property (whether investment property, financial asset, security, instrument or cash) credited to the
Series 2004-2 Cash Collateral 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. 

                        (b)    Series 2004-2
Letter of Credit Expiration Date.    If prior to the date which is ten (10) days prior to
the then-scheduled Series 2004-2 Letter of Credit Expiration Date with respect to any Series 2004-102 Letter of Credit, excluding the amount available to be drawn
under such Series 2004-2 Letter of Credit but taking into account each substitute Series 2004-2 Letter of Credit which has been obtained from a
Series 2004-2 Eligible Letter of Credit Provider and is in full force and effect on such date, the Series 2004-2 Enhancement Amount would be equal to or more than
the Series 2004-2 Required Enhancement Amount and the Series 2004-2 Liquidity Amount would be equal to or greater than the Series 2004-2
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 (2) Business Days prior to such Series 2004-2 Letter of Credit Expiration Date of such determination. If prior to the date which is ten (10) days prior
to the then-scheduled Series 2004-2 Letter of Credit Expiration Date with respect to any Series 2004-2 Letter of Credit, excluding the amount
available to be drawn under such Series 2004-2 Letter of Credit but taking into account a substitute Series 2004-2 Letter of Credit which has been obtained from a
Series 2004-2 Eligible Letter of Credit Provider and is in full force and effect on such date, the Series 2004-2 Enhancement Amount would be less than the
Series 2004-2 Required Enhancement Amount or the Series 2004-2 Liquidity Amount would be less than the Series 2004-2 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
(2) Business Days prior to such Series 2004-2 Letter of Credit Expiration Date of (x) the greater of (A) the excess, if any, of the
Series 2004-2 Required Enhancement Amount over the Series 2004-2 Enhancement Amount, excluding the available amount under such expiring
Series 2004-2 Letter of Credit but taking into account any substitute Series 2004-2 Letter of Credit which has been obtained from a
Series 2004-2 Eligible Letter of Credit Provider and is in full force and effect, on such date, and (B) the excess, if any, of the Series 2004-2 Required
Liquidity Amount 

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over
the Series 2004-2 Liquidity Amount, excluding the available amount under such expiring Series 2004-2 Letter of Credit but taking into account any substitute
Series 2004-2 Letter of Credit which has been obtained from a Series 2004-2 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 2004-2 Letter of Credit on such date. Upon receipt of such notice by the Trustee on or prior to 10:00 a.m.
(New York City time) on any Business Day, the Trustee shall, by 12:00 noon (New York City time) on such Business Day (or, in the case of any notice given to the Trustee after 10:00 a.m. (New
York City time), by 12:00 noon (New York City time) on the next following Business Day), draw the lesser of the amounts set forth in clauses (x) and (y) above on such expiring
Series 2004-2 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 2004-2 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 (2) Business
Days prior to each Series 2004-2 Letter of Credit Expiration Date, the Trustee shall, by 12:00 noon (New York City time) on such Business Day draw the full amount of such
Series 2004-2 Letter of Credit by presenting a draft accompanied by a Certificate of Termination Demand and shall cause the Termination Disbursement to be deposited in the
Series 2004-2 Cash Collateral Account. 

                        (c)    Series 2004-2
Letter of Credit Providers.    The Administrator shall notify the Trustee and the Surety
Provider in writing within one (1) Business Day of becoming aware that (i) the long-term senior unsecured debt credit rating of any Series 2004-2 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 2004-2 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 2004-2 Required Enhancement Amount over the
Series 2004-2 Enhancement Amount, excluding the available amount under the Series 2004-2 Letter of Credit issued by such Series 2004-2 Letter
of Credit Provider, on such date, and (B) the excess, if any, of the Series 2004-2 Required Liquidity Amount over the Series 2004-2 Liquidity Amount,
excluding the available amount under such Series 2004-2 Letter of Credit, on such date, and (ii) the amount available to be drawn on such Series 2004-2
Letter of Credit on such date. Upon receipt of such notice by the Trustee on or prior to 10:00 a.m. (New York City time) on any Business Day, the Trustee shall, by 12:00 noon (New York City
time) on such Business Day (or, in the case of any notice given to the Trustee after 10:00 a.m. (New York City time), by 12:00 noon (New York City time) on the next following Business Day),
draw on such Series 2004-2 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 2004-2 Cash
Collateral Account. 

                        (d)    Termination
Date Demands on the Series 2004-2 Letters of Credit.    Prior to 10:00 a.m. (New York City
time) on the Business Day immediately succeeding the Series 2004-2 Letter of Credit Termination Date, the Administrator shall determine the Series 2004-2 Demand
Note Payment Amount, if any, as of the Series 2004-2 Letter of Credit Termination Date and, if the Series 2004-2 Demand Note Payment Amount is greater than zero,
instruct the 

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Trustee
in writing to draw on the Series 2004-2 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 2004-2 Demand Note Payment Amount and
(ii) the Series 2004-2 Letter of Credit Liquidity Amount on the Series 2004-2 Letters of Credit by presenting to each Series 2004-2
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 2004-2 Cash Collateral Account; provided, however, that if the Series 2004-2 Cash Collateral
Account has been established and funded, the Trustee shall draw an amount equal to the product of (a) 100% minus the Series 2004-2 Cash
Collateral Percentage and (b) the lesser of the amounts referred to in clause (i) and (ii) on such Business Day on the Series 2004-2 Letters of Credit as
calculated by the Administrator and provided in writing to the Trustee and the Surety Provider. 

                        (e)    Draws
on the Series 2004-2 Letters of Credit.    If there is more than one Series 2004-2
Letter of Credit on the date of any draw on the Series 2004-2 Letters of Credit pursuant to the terms of this Supplement, the Administrator shall instruct the Trustee, in writing,
to draw on each Series 2004-2 Letter of Credit in an amount equal to the Pro Rata Share of the Series 2004-2 Letter of Credit Provider issuing such
Series 2004-2 Letter of Credit of the amount of such draw on the Series 2004-2 Letters of Credit. 

                        (f)    Establishment
of Series 2004-2 Cash Collateral Account.    On or prior to the date of any drawing under a
Series 2004-2 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 2004-2 Noteholders, each Series 2004-2 Interest Rate Swap Counterparty and the Surety Provider, or cause to be established and maintained,
an account (the
"Series 2004-2 Cash Collateral Account"), bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the
Series 2004-2 Noteholders, each Series 2004-2 Interest Rate Swap Counterparty and the Surety Provider. The Series 2004-2 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 2004-2 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 30 days of such reduction, establish a new
Series 2004-2 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 2004-2 Cash Collateral Account. If a new Series 2004-2 Cash
Collateral Account is established, AFC-II shall instruct the Trustee in writing to transfer all cash and investments from the non-qualifying Series 2004-2
Cash Collateral Account into the new Series 2004-2 Cash Collateral Account. 

                        (g)    Administration
of the Series 2004-2 Cash Collateral Account.    AFC-II may instruct (by standing
instructions or otherwise) the institution maintaining the Series 2004-2 Cash Collateral Account to invest funds on deposit in the Series 2004-2 Cash Collateral
Account from time to time in Permitted Investments; provided, however, that any such investment shall 

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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 2004-2
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 2004-2 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 2004-2 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 2004-2 Cash Collateral Account shall remain uninvested. 

                        (h)    Earnings
from Series 2004-2 Cash Collateral Account.    All interest and earnings (net of losses and
investment expenses) paid on funds on deposit in the Series 2004-2 Cash Collateral Account shall be deemed to be on deposit therein and available for distribution. 

                        (i)    Series 2004-2
Cash Collateral Account Surplus.    In the event that the Series 2004-2 Cash
Collateral Account Surplus on any Distribution Date (or, after the Series 2004-2 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 2004-2
Cash Collateral Account an amount equal to the Series 2004-2 Cash Collateral Account Surplus and shall pay such amount: first, to the
Series 2004-2 Letter of Credit Providers to the extent of any unreimbursed drawings under the related Series 2004-2 Reimbursement Agreement, for application in
accordance with the provisions of the related Series 2004-2 Reimbursement Agreement, and, second, to AFC-II any remaining amount. 

                        (j)    Post-Series 2004-2
Letter of Credit Termination Date Withdrawals from the Series 2004-2 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 2004-2 Cash Collateral Account and
pay to the Surety Provider an amount equal to the lesser of (i) the Series 2004-2 Available Cash Collateral Account Amount on such date and (ii) such Preference
Amount. Prior to any withdrawal from the Series 2004-2 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 2004-2 Cash Collateral Account.    Upon the termination of this Supplement in accordance
with its terms, the Trustee, acting in accordance with the 

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written
instructions of the Administrator, after the prior payment of all amounts owing to the Series 2004-2 Noteholders and to the Surety Provider and payable from the
Series 2004-2 Cash Collateral Account as provided herein, shall withdraw from the Series 2004-2 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 2004-2 Letter of Credit Providers
to the extent of any unreimbursed drawings under the related Series 2004-2 Reimbursement Agreement, for application in
accordance with the provisions of the related Series 2004-2 Reimbursement Agreement, and, second, to AFC-II any remaining amount. 

                        Section 2.9    Series 2004-2
Distribution Account.    (a)    Establishment of
Series 2004-2 Distribution Account.    The Trustee shall establish and maintain in the name of the Series 2004-2 Agent for the benefit of
the Series 2004-2 Noteholders, each Series 2004-2 Interest Rate Swap Counterparty and the Surety Provider, or cause to be established and maintained, an account
(the "Series 2004-2 Distribution Account"), bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the
Series 2004-2 Noteholders, each Series 2004-2 Interest Rate Swap Counterparty and the Surety Provider. The Series 2004-2 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 2004-2 Distribution 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 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 30 days of such reduction, establish a new
Series 2004-2 Distribution Account with a new Qualified Institution. If the Series 2004-2 Distribution Account is not maintained in accordance with the previous
sentence, AFC-II shall establish a new Series 2004-2 Distribution Account, within ten (10) Business Days after obtaining knowledge of such fact, which complies
with such sentence, and shall instruct the Series 2004-2 Agent in writing to transfer all cash and investments from the non-qualifying Series 2004-2
Distribution Account into the new Series 2004-2 Distribution Account. Initially, the Series 2004-2 Distribution Account will be established with The Bank of New
York. 

                        (b)    Administration
of the Series 2004-2 Distribution Account.    The Administrator may instruct the institution
maintaining the Series 2004-2 Distribution Account to invest funds on deposit in the Series 2004-2 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 2004-2 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 2004-2 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 

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the
Trustee's security interest in the Permitted Investments credited to the Series 2004-2 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 2004-2 Distribution Account shall remain uninvested. 

                        (c)    Earnings
from Series 2004-2 Distribution Account.    All interest and earnings (net of losses and investment
expenses) paid on funds on deposit in the Series 2004-2 Distribution Account shall be deemed to be on deposit and available for distribution. 

                        (d)    Series 2004-2
Distribution Account Constitutes Additional Collateral for Series 2004-2
Notes.    In order to secure and provide for the repayment and payment of the AFC-II Obligations with respect to the Series 2004-2 Notes,
AFC-II hereby grants a security interest in and assigns, pledges, grants, transfers and sets over to the Series 2004-2 Agent, for the benefit of the
Series 2004-2 Noteholders, each Series 2004-2 Interest Rate Swap Counterparty 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 2004-2 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 all of the Series 2004-2 Distribution Account or
the funds on deposit therein from time to time; (iv) all investments made at any time and from time to time with monies in the Series 2004-2 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 2004-2 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 2004-2 Distribution Account Collateral"). The Series 2004-2 Agent shall
possess all right, title and interest in all funds on deposit from time to time in the Series 2004-2 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 2004-2 Distribution Account. The Series 2004-2 Distribution Account Collateral shall be
under the sole dominion and control of the Series 2004-2 Agent for the benefit of the Series 2004-2 Noteholders, each Series 2004-2 Interest
Rate Swap Counterparty and the Surety Provider. The Series 2004-2 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 2004-2 Distribution Account; (ii) that each item of property (whether investment
property, financial asset, security, instrument or cash) credited to the Series 2004-2 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 2004-2
Interest Rate Swaps.    (a)    On the Series 2004-2
Closing Date, AFC-II shall enter into one or more interest rate swaps acceptable to the Surety Provider in respect of the Class A-2 Notes satisfying the requirements of
clause (i)
below and one or more interest rate swaps acceptable to the Surety Provider in respect of the Class A-3 

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Notes
satisfying the requirements of clause (ii) below, in each case with a Qualified Interest Rate Swap Counterparty (each a "Series 2004-2 Interest Rate
Swap"): 

            (i)    The
Series 2004-2 Interest Rate Swap in respect of the Class A-2 Notes shall have an aggregate initial notional amount equal to
the Class A-2 Initial Invested Amount. The aggregate notional amount of such Series 2004-2 Interest Rate Swap shall be reduced pursuant to the terms of such
Series 2004-2 Interest Rate Swap but shall not at any time be less than the Class A-2 Invested Amount. The fixed rate payable by AFC-II under such
Series 2004-2 Interest Rate Swap and any replacement thereof shall not be greater than 3.5%. 

            (ii)   The
Series 2004-2 Interest Rate Swap in respect of the Class A-3 Notes shall have an aggregate initial notional amount equal to
the Class A-3 Initial Invested Amount. The aggregate notional amount of such Series 2004-2 Interest Rate Swap shall be reduced pursuant to the terms of such
Series 2004-2 Interest Rate Swap but shall not at any time be less than the Class A-3 Invested Amount. The fixed rate payable by AFC-II under such
Series 2004-2 Interest Rate Swap and any replacement thereof shall not be greater than 3.5%. 

                        (b)    Replacement
of Any Series 2004-2 Interest Rate Swap.    If, at any time, a Series 2004-2
Interest Rate Swap Counterparty is not a Qualified Interest Rate Swap Counterparty, then AFC-II will cause such Series 2004-2 Interest Rate Swap Counterparty within
30 days following such occurrence, at the Series 2004-2 Interest Rate Swap Counterparty's expense, to either (i) obtain a replacement interest rate swap on
substantially the same terms as the Series 2004-2 Interest Rate Swap being replaced from a Qualified Interest Rate Swap Counterparty, at which point, simultaneously with such
replacement, AFC-II shall terminate the Series 2004-2 Interest Rate Swap being replaced or (ii) enter into any arrangement satisfactory to Standard &
Poor's, Moody's and the Surety Provider that is sufficient to maintain or restore the immediately prior Shadow Rating; provided, however, that
no termination of any Series 2004-2 Interest Rate Swap shall occur until AFC-II has entered into a replacement Series 2004-2 Interest Rate Swap. Each
Series 2004-2 Interest Rate Swap must provide that if such Series 2004-2 Interest Rate Swap Counterparty thereto is required to take any of the actions described
in clauses (i) or (ii) of the preceding sentence and such action is not taken within 30 days, then such Series 2003- 4 Interest Rate Swap Counterparty must,
until a replacement Series 2004-2 Interest Rate Swap is executed and in effect, collateralize its
obligations under such Series 2004-2 Interest Rate Swap in an amount equal to the greatest of (i) the marked to market value of such Series 2004-2 Interest
Rate Swap, (ii) the next payment due from such Series 2004-2 Interest Rate Swap Counterparty and (iii) 1% of the notional amount of such
Series 2004-2 Interest Rate Swap. 

                        (c)    To
secure payment of all AFC-II Obligations with respect to the Series 2004-2 Notes, AFC-II grants a security interest in,
and assigns, pledges, grants, transfers and sets over to the Series 2004-2 Agent, for the benefit of the Series 2004-2 Noteholders and the Surety Provider, all of
AFC-II's right, title and interest in the Series 2004-2 Interest Rate Swaps and all proceeds thereof (the "Series 2004-2 Interest Rate
Swap Collateral"). AFC-II shall require all Series 2004-2 Interest Rate Swap Proceeds to be paid to, and the Trustee shall allocate all
Series 2004-2 Interest Rate Swap Proceeds to, the Series 2004-2 Accrued Interest Account of the Series 2004-2 Collection Account. 

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                        (d)   The
failure of AFC-II to comply with its covenants contained in the this Section 2.10 shall not constitute an Amortization Event with respect to the
Series 2004-2 Notes. 

                        Section 2.11    Series 2004-2
Accounts Permitted Investments.    AFC-II shall not, and shall not
permit, funds on deposit in the Series 2004-2 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 

        (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 2004-2
Demand Notes Constitute Additional Collateral for Series 2004-2
Notes.    In order to secure and provide for the repayment and payment of the AFC-II Obligations with respect to the Series 2004-2 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 2004-2 Noteholders, each
Series 2004-2 Interest Rate Swap Counterparty 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 2004-2 Demand Notes; (ii) all
certificates and instruments, if any, representing or evidencing the Series 2004-2 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 2004-2 Noteholders, each Series 2004-2
Interest Rate Swap Counterparty and the Surety Provider, each Series 2004-2 Demand Note, endorsed in blank. The Trustee, for the benefit of the Series 2004-2
Noteholders, each Series 2004-2 Interest Rate Swap Counterparty and the Surety Provider, shall be the only Person authorized to make a demand for payments on the
Series 2004-2 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 2004-2 Notes and collectively shall constitute the Amortization Events set forth in Section 9.1(n) of the Base 

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Indenture
with respect to the Series 2004-2 Notes (without notice or other action on the part of the Trustee or any holders of the Series 2004-2 Notes): 

        (a)    a
Series 2004-2 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 2004-2
Enhancement Deficiency shall have been cured in accordance with the terms and conditions of the Indenture and the Related Documents; 

        (b)    the
Series 2004-2 Liquidity Amount shall be less than the Series 2004-2 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 2004-2 Collection Account, the Series 2004-2 Excess Collection Account or the
Series 2004-2 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 and the Class A-2 Notes is not paid in full on or before the
Three-Year Notes Expected Final Distribution Date or all principal of and interest on the Class A-3 Notes is not paid in full on or before the
Class A-3 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 2004-2 Letter of Credit shall not be in full force and effect for at least two (2) Business Days and (x) either a
Series 2004-2 Enhancement Deficiency would result from excluding such Series 2004-2 Letter of Credit from the Series 2004-2 Enhancement Amount
or (y) the Series 2004-2 Liquidity Amount, excluding therefrom the available amount under such Series 2004-2 Letter of Credit, would be less than the
Series 2004-2 Required Liquidity Amount; 

        (i)    from
and after the funding of the Series 2004-2 Cash Collateral Account, the Series 2004-2 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 2004-2 Enhancement Deficiency would result from excluding the Series 2004-2 Available Cash Collateral Account Amount from the
Series 2004-2 Enhancement Amount or (y) the Series 2004-2 Liquidity Amount, excluding therefrom the Series 2004-2 Available Cash
Collateral Amount, would be less than the Series 2004-2 Required Liquidity Amount; and 

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        (j)    an
Event of Bankruptcy shall have occurred with respect to any Series 2004-2 Letter of Credit Provider or any Series 2004-2 Letter
of Credit Provider repudiates its Series 2004-2 Letter of Credit or refuses to honor a proper draw thereon and either (x) a Series 2004-2 Enhancement
Deficiency would result from excluding such Series 2004-2 Letter of Credit from the Series 2004-2 Enhancement Amount or (y) the
Series 2004-2 Liquidity Amount, excluding therefrom the available amount under such Series 2004-2 Letter of Credit, would be less than the
Series 2004-2 Required Liquidity Amount. 

 
 

ARTICLE IV    
    
    RIGHT TO WAIVE PURCHASE RESTRICTIONS    
    

                        Notwithstanding any provision to the contrary in the Indenture or the Related Documents,
but subject in all respects to the Surety Provider's rights under
Section 6.11, 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 2004-2 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 2004-2 Maximum Amount, (such notice, a "Waiver Request"), each
Series 2004-2 Noteholder may, at its option, waive the Series 2004-2 Maximum Non-Program Vehicle Amount or any other Series 2004-2
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) 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 2004-2 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 2004-2 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 2004-2 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 2004-2 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 2004-2 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 2004-2 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 2004-2 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. 

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                        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 2004-2 Noteholders, if any, pro rata up to the amount required to pay all Series 2004-2
Notes held by such non-consenting Series 2004-2 Noteholders in full; and 

        (ii)    any
remaining Designated Amounts to the Series 2004-2 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 2004-2 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 2004-2 Collection Account and deposit the same in the Series 2004-2 Distribution Account for
distribution as follows: 

        (a)    to
the non-consenting Series 2004-2 Noteholders, if any, pro rata an amount
equal to the Designated Amounts in the Series 2004-2 Collection Account as of the applicable Determination Date up to the aggregate outstanding principal balance of the
Series 2004-2 Notes held by the non-consenting Series 2004-2 Noteholders; and 

        (b)    any
remaining Designated Amounts to the Series 2004-2 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 2004-2
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 2004-2 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 2004-2 Noteholders. 

 
 

ARTICLE V    
    
    FORM OF SERIES 2004-2 NOTES    
    

                        Section 5.1    Restricted Global Series 2004-2
Notes.    The
Series 2004-2 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", a "Restricted Global Class A-2
Note" or a "Restricted Global Class A-3 Note", as the case may be), substantially in the forms set forth in
Exhibit A-1-1, A-2-1 and A-3-1 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 registra- 

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tion
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 2004-2 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 2004-2 Notes; Permanent Global Series 2004-2
Notes.    The Series 2004-2 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", a "Temporary Global Class A-2 Note" or a
"Temporary Global Class A-3 Note", as the case may be), substantially in the forms set forth in Exhibits A-1-2,
A-2-2 and A-3-2 hereto, which shall be deposited on behalf of the purchasers of the Series 2004-2 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, a Temporary Global
Class A-2 Note or a Temporary Global Class A-3 Note will be exchangeable, in whole or in part, for interests in one or more permanent global notes in registered
form without interest coupons (each, a "Permanent Global Class A-1 Note", a "Permanent Global Class A-2
Note" or a "Permanent Global Class A-3 Note", as the case may be), substantially in the form of
Exhibits A-1-3, A-2-3 and A-3-3 hereto, in accordance with the provisions of such Temporary
Global Class A-1 Note, Temporary Global Class A-2 Note or Temporary Global Class A-3 Note and the Base Indenture (as modified by this
Supplement). Interests in a Permanent Global Class A-1 Note, a Permanent Global Class A-2 Note or a Permanent Global Class A-3 Note will be
exchangeable for definitive Class A-1 Notes, definitive Class A-2 Notes or definitive Class A-3 Notes, as the case may be, in accordance with
the provisions of such Permanent Global Class A-1 Note, Permanent Global Class A-2 Note or Permanent Global Class A-3 Note and the Base
Indenture (as modified by this Supplement). 

 
 

ARTICLE VI    
    
    GENERAL    
    

                        Section 6.1    Optional
Repurchase.    Each Class of the Series 2004-2 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, the
Class A-2 Invested Amount or the Class A-3 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, the Class A-2 Initial Invested Amount or the Class A-3 Initial Invested Amount, as the case may be (the
"Series 2004-2 Repurchase Amount"); provided, however, that as a condition precedent to any
such optional repurchase on any Distribution Date on which no Surety Default has occurred and is continuing, AFC-II shall have received the consent of the Surety Provider. The repurchase
price for any Series 2004-2 

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Note
shall equal the aggregate outstanding principal balance of such Series 2004-2 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 2004-2 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 2004-2 Notes or the Series 2004-2 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 2004-2 Notes that have been made and subsequently recovered from
Series 2004-2 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 A-3-1	 	Form of Restricted Global Class A-3 Note
	Exhibit A-3-2	 	Form of Temporary Global Class A-3 Note
	Exhibit A-3-3	 	Form of Permanent Global Class A-3 Note
	Exhibit B:	 	Form of Consent
	Exhibit C:	 	Form of Series 2004-2 Demand Note
	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 

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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 2004-2 Noteholders representing more than 50% of the aggregate outstanding principal amount of the Series 2004-2 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 or the Class A-3 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 or the Class A-3 Notes), (ii) affects only the Class A-2 Notes (and does not affect in material respect
the Class A-1 Notes or the Class A-3 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 or the Class A-3 Notes) and (iii) affects only the
Class A-3 Notes (and does not affect in any material respect the Class A-1 Notes or 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-3 Noteholders representing more than 50% of the aggregate
outstanding principal amount of the Class A-3 Notes (without the necessity of obtaining the consent of the Required Noteholders in respect of the Class A-1 Notes
or the Class A-2 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 2004-2 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 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 Financial Guaranty Insurance Company, 125 Park Avenue, New York, New
York 10017, Attention: General Counsel, Telephone: (212) 312-3077. 

                        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 2004-2 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." 

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                        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 2004-2 Notes for the purposes of giving any and all consents, waivers (including, without
limitation, pursuant to Article IV and Section 6.7), 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 2004-2 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 2004-2 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 2004-2 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 2004-2
Notes for such purposes. 

                        Section 6.12    Capitalization
of AFC-II.    AFC-II agrees that on the Series 2004-2
Closing Date it will have capitalization in an amount equal to or greater than 3% of the sum of (x) the Series 2004-2 Invested Amount and (y) the invested amount of
the Series 1998-1 Notes, the Series 2000-2 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, the Series 2003-4 Notes, the
Series 2003-5 Notes and the Series 2004-1 Notes. 

                        Section 6.13    Series 2004-2
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 2004-2 Required Non-Program Enhancement
Percentage would exceed 25.0%. 

                        Section 6.14    Third
Party Beneficiary.    The Surety Provider and each Series 2004-2 Interest Rate Swap
Counterparty 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 2004-2 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 2004-2 Notes (except those set forth in clauses (f) and
(g) of Article III) or a Series 2004-2 Limited Liquidation Event of Default until after the Trustee has given prior written notice thereof to the Surety Provider and
obtained the direction of 

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COPY 

the
Required Noteholders with respect to the Series 2004-2 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 2004-2 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 2004-2 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 2004-2 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 2004-2 Notes
to the Trustee for the benefit of the Series 2004-2 Noteholders or to the Series 2004-2 Noteholders (including any Preference Amounts as defined in the Surety
Bond), the Surety Provider will be fully subrogated to the rights of such Series 2004-2 Noteholders to receive such principal and interest and will be deemed to the extent of the
payments so made to be a Series 2004-2 Noteholder and (ii) the Surety Provider shall be paid principal and interest in its capacity as a Series 2004-2
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 2004-2 Noteholders have received all payments of principal and interest due to them hereunder on the related Distribution Date. 

                        Section 6.17    Series 2004-2
Demand Notes.    Other than pursuant to a demand thereon pursuant to
Section 2.5, AFC-II shall not reduce the amount of the Series 2004-2 Demand Notes or forgive amounts payable thereunder so that the
outstanding principal amount of the Series 2004-2 Demand Notes after such reduction or forgiveness is less than the Series 2004-2 Letter of Credit Liquidity
Amount. AFC-II shall not agree to any amendment of the Series 2004-2 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 2004-2 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 and any additional
interest due on any late payment, to the rights of the Series 2004-2 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 2004-2 Notes theretofore authenticated and issued have been delivered (other than destroyed, lost, or stolen Series 2004-2 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, the Policy is no longer in effect, 

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COPY 

the
Series 2004-2 Interest Rate Swaps have been terminated and there are no amounts due and owing thereunder and, if the Series 2004-2 Demand Note Payment Amount
on the Series 2004-2 Letter of Credit Termination Date was greater than zero, all amounts have been withdrawn from the Series 2004-2 Cash Collateral Account in
accordance with Section 2.8(i). 

                        Section 6.20    Condition
to Termination of AFC-II's Obligations.    Notwithstanding anything to the contrary in
Section 11.1 of the Indenture, so long as this Supplement is in effect, AFC-II may not terminate its obligations under the Indenture unless AFC-II shall have delivered
to the Surety Provider an Opinion of Counsel, in form and substance acceptable to the Surety Provider, to the effect that, in the event of a bankruptcy proceeding under the Bankruptcy Code in respect
of AFC-II, the Lessor or any Lessee, the bankruptcy court would not avoid any amounts distributed to the Series 2004-2 Noteholders or the Surety Provider in connection
with such termination. 

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COPY 

                        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 2004-2 Agent
	

 	
 	

By:	

/s/  Eric Lindahl      
 Title: Agent

QuickLinks

Exhibit 10.1

PRELIMINARY STATEMENT

DESIGNATION

ARTICLE I DEFINITIONS

ARTICLE II

SERIES 2004-2 ALLOCATIONS

ARTICLE III AMORTIZATION EVENTS

ARTICLE IV RIGHT TO WAIVE PURCHASE RESTRICTIONS

ARTICLE V FORM OF SERIES 2004-2 NOTES

ARTICLE VI GENERALQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 4.2    
    

 
 

SECURITY AND PLEDGE AGREEMENT    
    

dated as of  

 December 26, 2002  

 between  

 QWEST SERVICES CORPORATION  

 and  

 BANK OF AMERICA, N.A.,

as Collateral Agent

  

 
 

TABLE OF CONTENTS    
    

	 
	 	 
	 	Page

	Section 1.	 	Definitions	 	S-1
	

Section 2.	
 	

Grant Of Transaction Liens	
 	

S-7
	

Section 3.	
 	

Further Assurances; General Covenants	
 	

S-10
	

Section 4.	
 	

Acknowledgment	
 	

S-10
	

Section 5.	
 	

Collateral Accounts	
 	

S-12
	

Section 6.	
 	

Instruments/Certificated Securities	
 	

S-12
	

Section 7.	
 	

Operation Of Collateral Accounts	
 	

S-13
	

Section 8.	
 	

Certain Cash Distributions	
 	

S-14
	

Section 9.	
 	

Remedies Upon Event Of Default	
 	

S-14
	

Section 10.	
 	

Limitation On Rights And Remedies	
 	

S-14
	

Section 11.	
 	

Application Of Proceeds	
 	

S-14
	

Section 12.	
 	

Certain Intercreditor Arrangements In Bankruptcy	
 	

S-16
	

Section 13.	
 	

Fees And Expenses; Indemnification	
 	

S-18
	

Section 14.	
 	

Authority To Administer Collateral	
 	

S-19
	

Section 15.	
 	

Limitation On Duty In Respect Of Collateral	
 	

S-19
	

Section 16.	
 	

General Provisions Concerning The Collateral Agent	
 	

S-20
	

Section 17.	
 	

Termination Of Transaction Liens; Release Of Collateral	
 	

S-22
	

Section 18.	
 	

Additional Secured Obligations	
 	

S-23
	

Section 19.	
 	

Notices	
 	

S-25
	

Section 20.	
 	

No Implied Waivers; Remedies Not Exclusive	
 	

S-25
	

Section 21.	
 	

Successors And Assigns	
 	

S-26
	

Section 22.	
 	

Amendments And Waivers	
 	

S-26
	

Section 23.	
 	

Choice Of Law	
 	

S-26
	

Section 24.	
 	

Waiver Of Jury Trial	
 	

S-26
	

Section 25.	
 	

Severability	
 	

S-26
	

Schedule 1	
 	

Notes or Other Instruments Evidencing Indebtedness Owing to QSC	
 	

S-3-1
	

Exhibit A	
 	

Form of Additional Secured Party Consent	
 	

C-1

i

  

 
 

SECURITY AND PLEDGE AGREEMENT    
    

        AGREEMENT dated as of December 26, 2002 among QWEST SERVICES CORPORATION and BANK OF AMERICA, N.A., as Collateral Agent for the QSC Notes Trustee, as
trustee for the holders of the QSC Notes, the Existing 2008 Notes Trustee, as trustee for the holders of the Existing 2008 Notes, the holders of any Additional Senior Secured Obligations secured by
this Agreement or their trustee or similar representative and the holders of any Additional Pari Passu Secured Obligations secured by this Agreement or their trustee or similar representative. 

        WHEREAS,
QSC has issued the QSC Notes and has guaranteed the Existing 2008 Notes pursuant to that certain Guaranty dated as of December 26, 2002 (the
"Guaranty"); 

        WHEREAS,
QSC is willing to secure its obligations in respect of the QSC Notes and in respect of the Guaranty pursuant to the Security Documents by granting Liens on certain of its assets
to the Collateral Agent as provided in the Security Documents; 

        WHEREAS,
QSC has secured its obligations in respect of the Revolver Credit Agreement and in respect of its guaranty of the obligations of QwestDex under the Term Credit Agreement
pursuant to a Security and Pledge Agreement dated as of August 30, 2002 (as amended from time to time, the "Senior Security Agreement"); 

        WHEREAS,
the liens granted by QSC herein shall be junior and subordinate to the liens granted by QSC under the Senior Security Agreement and to certain other liens granted by QSC to
secure Additional Senior Secured Obligations, as more particularly set forth herein; 

        WHEREAS,
the liens granted by QSC herein shall be equal and ratable with certain other liens granted by QSC to secure Additional Pari Passu Secured Obligations as more particularly set
forth herein; 

        NOW,
THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as
follows: 

        Section 1.    Definitions.    

        (a)    Terms Defined in UCC.    As used herein, each of the following terms has the meaning specified in the UCC: 

	Term
 
	 	UCC

	Authenticate	 	9-102
	Certificated Security	 	8-102
	Entitlement Holder	 	8-102
	Instrument	 	9-102
	Securities Account	 	8-501
	Securities Intermediary	 	8-102
	Security Entitlement	 	8-102
	Supporting Obligations	 	9-102

        (b)    Additional Definitions.    The following additional terms, as used herein, have the following meanings: 

        "Account Control Agreement" means, with respect to any account, a blocked account agreement in favor of the Collateral Agent, all in form
and substance satisfactory to the Collateral Agent. 

        "Additional Pari Passu Secured Obligations" has the meaning specified in Section 18(b). 

S-1

 

        "Additional Pari Passu Secured Parties" means the holders from time to time of Additional Pari Passu Secured Obligations secured by this
Agreement or the trustees or like representatives thereof. 

        "Additional Secured Party Consent" means an Additional Secured Party Consent, substantially in the form of Exhibit A, signed and
delivered to the Collateral Agent and the Senior Collateral Agent in connection with the designation of Additional Senior Secured Obligations or Additional Pari Passu Secured Obligations secured by
Transaction Liens on or after the Effective Date pursuant to Section 18. 

        "Additional Senior Secured Obligations" has the meaning specified in Section 18(a). 

        "Additional Senior Secured Parties" means the holders from time to time of Additional Senior Secured Obligations secured by this Agreement
or the trustees or like representatives thereof. 

        "Affiliate" means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries,
controls or is controlled by or is under common control with such specified Person; provided that as used in this definition "control" means possession,
directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. 

        "Bankruptcy Event" means any Event of Default described in Section 6.01(g) or 6.01(h) of the Indenture or any analogous "event of
default" under the Existing 2008 Notes Indentures or any Secured Agreement governing Additional Senior Secured Obligations or Additional Pari Passu Secured Obligations triggered by the bankruptcy or
insolvency of QSC and, until satisfaction of the Senior Release Conditions, a "Bankruptcy Event" as defined in the Senior Security Agreement. 

        "Business Day" means any day except a Saturday, Sunday or other day on which commercial banks in New York, New York or Dallas, Texas are
authorized by law to close. 

        "Cash Distributions" means dividends, interest and other distributions and payments (including proceeds of liquidation, sale or other
disposition) made or received in cash upon or with respect to any Collateral. 

        "Class" means, as applied to the Secured Parties, each of the following four classes of Secured Parties: (i) the QSC Notes Trustee;
(ii) the Existing 2008 Notes Trustee; (iii) the Additional Senior Secured Parties and (iv) the Additional Pari Passu Secured Parties. 

        "Collateral" means all property, whether now owned or hereafter acquired, on which a Lien is granted or purports to be granted to the
Collateral Agent pursuant to the Security Documents. 

        "Collateral Accounts" has the meaning specified in Section 5. 

        "Collateral Agent" means Bank of America, N.A. or its successor pursuant to Section 16(i), in its capacity as collateral agent
hereunder. 

        "Contingent Secured Obligation" means, at any time, any Secured Obligation (or portion thereof) that is contingent in nature at such time,
including, without limitation, any Secured Obligation that is an obligation to provide additional collateral to secure a Secured Obligation, provided
that contingent obligations under general indemnification provisions or the like as to which no claim is pending or reasonably foreseeable shall not be treated as Contingent Secured Obligations for
purposes of the administration of this Agreement. 

        "Corp." means Qwest Corporation, a Colorado corporation, and its successors. 

        "Corp. Equity Collateral" has the meaning specified in Section 2(a). 

        "Corp. Equity Interest" means all Equity Interests in Corp. 

S-2

 

        "Credit Agreements" means, collectively, the Revolver Credit Agreement and the Term Credit Agreement. 

        "Debt" of any Person means at any date, without duplication, (i) all obligations of such Person for borrowed money, (ii) all
obligations of such Person evidenced by bonds, debentures, notes or other similar instruments, (iii) all obligations of such Person to pay the deferred purchase price of property or services,
except trade accounts payable arising in the ordinary course of business, (iv) all obligations of such Person as lessee which are capitalized in accordance with generally accepted accounting
principles, (v) all Debt secured by a Lien on any asset of such Person, whether or not such Debt is otherwise an obligation of such Person, and (vi) all Debt of others guaranteed by such
Person. 

        "Effective Date" means December 26, 2002. 

        "Equity Interest" means (i) in the case of a corporation, any shares of its capital stock, (ii) in the case of a limited
liability company, any membership interest therein, (iii) in the case of a partnership, any partnership interest (whether general or limited) therein, (iv) in the case of any other
business entity, any participation or other interest in the equity or profits thereof, (v) any warrant, option or other right to acquire any Equity Interest described in this definition or
(vi) any Security Entitlement in respect of any Equity Interest described in this definition. 

        "Event of Default" means any "Event of Default" under (and as such term is defined in) the Indenture, the Guaranty, or any Secured
Agreement governing Additional Senior Secured Obligations or Additional Pari Passu Secured Obligations. 

        "Existing 2008 Notes" are defined in the Indenture. 

        "Existing 2008 Notes Indentures" are defined in the Indenture. 

        "Existing 2008 Notes Secured Obligations" means all obligations of QSC with respect to the Existing 2008 Notes pursuant to the Guaranty. 

        "Existing 2008 Notes Trustee" means Deutsche Bank Trust Company Americas or its successor as "Trustee" under the Existing 2008 Note
Indentures. 

        "FCC" means the Federal Communications Commission and any successor agency thereof. 

        "First Tier Secured Obligations" means, with respect to any Collateral at any time, all obligations secured by a Lien on such Collateral
at such time pursuant to the Senior Security Agreement; provided that, from and after the satisfaction of the Senior Release Conditions, the Additional
Senior Secured Obligations shall be deemed to be First Tier Secured Obligations. 

        "First Tier Secured Parties" means the holders from time to time of the First Tier Secured Obligations. 

        "Future Restricted Subsidiary Equity Collateral" has the meaning set forth in Section 2(g). 

        "Future Restricted Subsidiary Equity Interest" has the meaning set forth in Section 2(g). 

        "Governmental Authority" means the government of the United States, any other nation or any political subdivision thereof, whether state
or local, and any agency, authority, instrumentality, regulatory body, court or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government. 

        "Guaranty" has the meaning set forth in the recitals hereto. 

        "Holdings Equity Collateral" has the meaning set forth in Section 2(e). 

        "Indenture" means the Indenture dated as of December 26, 2002 among QSC, the Guarantors party thereto and the QSC Notes Trustee
with respect to the QSC Notes. 

S-3

 

        "Lien" means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind, or any other
type of preferential arrangement that has the practical effect of creating a security interest, in respect of such asset. 

        "Liquid Investment" means a Permitted Investment (other than commercial paper) that matures within 30 days after it is first
included in the Collateral. 

        "Non-Contingent Secured Obligation" means at any time any Secured Obligation (or portion thereof) that is not a Contingent
Secured Obligation at such time. 

        "own" refers to the possession of sufficient rights in property to grant a security interest therein as contemplated by UCC
Section 9-203, and "acquire" refers to the acquisition of any such rights. 

        "Permitted Investments" means investments in: 

        (a)   direct
obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States (or by any agency thereof to the extent
such obligations are backed by the full faith and credit of the United States), in each case maturing within one year from the date of acquisition thereof; 

        (b)   commercial
paper maturing within one year from the date of acquisition thereof and having, at such date of acquisition, the highest credit rating obtainable from
Standard & Poor's Ratings Group, a division of the McGraw-Hill Companies, Inc., or from Moody's Investors Service, Inc.; 

        (c)   certificates
of deposit, banker's acceptances and time deposits maturing within one year from the date of acquisition thereof issued or guaranteed by or placed with, and
money market deposit accounts issued or offered by, any domestic office of any commercial bank organized under the laws of the United States or any State thereof which has a combined capital and
surplus and undivided profits of at least $500,000,000; 

        (d)   fully
collateralized repurchase agreements with a term of not more than 30 days for securities described in clause (a) above and entered into with a
financial institution satisfying the criteria described in clause (c) above; and 

        (e)   any
other investments made in compliance with the cash management investment policy of QSC with respect to cash investments, substantially as in effect on the Effective
Date. 

        "Person" means an individual, a corporation, a partnership, an association, a trust or any other entity or organization, including a
government or political subdivision or an agency or instrumentality thereof. 

        "Pledged", when used in conjunction with any type of asset, means at any time an asset of such type that is included (or that creates
rights that are included) in the Collateral at such time. For example, "Pledged Equity Interest" means an Equity Interest that is included in the Collateral at such time. 

        "Post-Petition Interest" means any interest that accrues after the commencement of any case, proceeding or other action
relating to the bankruptcy, insolvency or reorganization of QSC (or would accrue but for the operation of applicable bankruptcy or insolvency laws), whether or not such interest is allowed or
allowable as a claim in any such proceeding. 

        "Proceeds" means all proceeds of, and all other profits, products, rents or receipts, in whatever form, arising from the collection, sale,
lease, exchange, assignment, licensing or other disposition of, or other realization upon, any Collateral, including all claims of QSC against third parties for loss of, damage to or destruction of,
or for proceeds payable under, or unearned premiums with respect to, 

S-4

 

policies
of insurance in respect of, any Collateral, and any condemnation or requisition payments with respect to any Collateral. 

        "PUC" means any commission, board or official (by whatever name designated) which under the laws of any State has regulatory jurisdiction
with respect to intrastate operations of Corp., or any of its Subsidiaries or Affiliates, with respect to such Person's business as a common carrier for hire, in intrastate, interstate or foreign
communication by wire or radio or intrastate, interstate or foreign radio transmission of energy. 

        "QCII" means Qwest Communications International Inc., a Delaware corporation. 

        "QSC" means Qwest Services Corporation, a Colorado corporation. 

        "QSC Asset Collateral" has the meaning specified in Section 2(c). 

        "QSC Notes" means those certain 13% Senior Subordinated Secured Notes due 2007, those certain 131/2% Senior Subordinated
Secured Notes due 2010, those certain 14% Senior Subordinated Secured Notes due 2014 and any Additional Notes (as defined in the Indenture), in each case issued by QSC under the Indenture. 

        "QSC Notes Secured Obligations" means the principal amount of the QSC Notes outstanding from time to time, all interest (including
Post-Petition Interest) thereon and all other amounts now or hereafter payable by QSC in connection therewith. 

        "QSC Notes Trustee" means Bank One Trust Company, N.A. or its successor as "Trustee" under the Indenture. 

        "Qualified Senior Debt" has the meaning provided in the Indenture. 

        "Qwest Companies" means, collectively, QSC, QwestDex, and all of their respective Subsidiaries and QCII. 

        "QwestDex" means Qwest Dex, Inc., a Colorado corporation. 

        "QwestDex Holdings" means Qwest Dex Holdings, Inc., a Delaware corporation. 

        "Regulated Entity" means a Person as to which the consent of a governmental body or official is required for any acquisition of control or
change of control thereof. 

        "Related Parties" means, with respect to any specified Person, such Person's Affiliates and the respective directors, officers, employees,
agents and advisors of such Person and its Affiliates. 

        "Restricted Subsidiaries" has the meaning provided in the Indenture. 

        "Revolver Credit Agreement" means the Second Amended and Restated Credit Agreement dated as of August 30, 2002 among QSC, QCII,
QwestDex, QwestDex Holdings, the Revolver Lenders and Bank of America, N.A., as Administrative Agent and Collateral Agent, as amended from time to time. 

        "Revolver Lenders" means, at any time, the lenders party to (and constituting the "Banks" as defined under) the Revolver Credit Agreement. 

        "Secured Agreement", when used with respect to any Secured Obligation, refers collectively to each instrument, agreement or other document
that sets forth obligations of QSC, obligations of a guarantor and/or rights of the holder with respect to such Secured Obligation. 

        "Secured Obligations" means collectively (i) all QSC Notes Secured Obligations; (ii) all Existing 2008 Notes Secured
Obligations; (iii) all Additional Senior Secured Obligations, all interest (including Post-Petition Interest) thereon and all other amounts now or hereafter payable by QSC in
connection therewith to the extent such Additional Senior Secured Obligations are secured by this Agreement; and (iv) all Additional Pari Passu Secured Obligations, all interest (including
Post-Petition Interest) thereon 

S-5

 

and
all other amounts now or hereafter payable by QSC in connection therewith to the extent such Additional Pari Passu Secured Obligations are secured by this Agreement. 

        "Secured Parties" means (i) the QSC Notes Trustee; (ii) the Existing 2008 Notes Trustee; (iii) the Additional Senior
Secured Parties and (iv) the Additional Pari Passu Secured Parties. 

        "Security Documents" means this Agreement and all other supplemental or additional security agreements, control agreements or similar
instruments, as required hereby. 

        "Senior Collateral Agent" means Bank of America, N.A., in its capacity as collateral agent under the Senior Security Agreement, and its
successors in such capacity. 

        "Senior Loan Documents" means, collectively, the Term Loan Documents and the Revolver Loan Documents (each as defined in the Senior
Security Agreement). 

        "Senior Release Conditions" means collectively the "Revolver Release Conditions" and the "Term Release Conditions", each as defined in the
Senior Security Agreement. 

        "Senior Secured Obligations" means all obligations under the Senior Loan Documents and all Additional Senior Secured Obligations. 

        "Senior Security Agreement" has the meaning specified in the recitals hereto. 

        "Silent Collateral Lienholders" means, prior to the satisfaction of the Senior Release Conditions, all of the Secured Parties, and
thereafter all of the Secured Parties other than the holders of any Additional Senior Secured Obligations or their trustees or like representatives. 

        "Subsidiary" means, as to any Person, any corporation or other entity of which securities or other ownership interests having ordinary
voting power to elect a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned by such Person. 

        "Term Credit Agreement" means the Term Loan Agreement dated as of August 30, 2002 among QwestDex, QSC, QwestDex Holdings, the Term
Lenders and Bank of America, N.A., as Administrative Agent and Collateral Agent, as amended from time to time. 

        "Term Lenders" means, at any time, the lenders party to (and comprising the "Lenders" as defined under) the Term Credit Agreement. 

        "Transaction Liens" means the Liens granted by QSC under the Security Documents. 

        "UCC" means the Uniform Commercial Code as in effect from time to time in the State of New York;  provided that, if perfection or the effect of perfection or
non-perfection or the priority of any Transaction Lien on any Collateral is
governed by the Uniform Commercial Code as in effect in a jurisdiction other than New York, "UCC" means the Uniform Commercial Code as in effect from time to time in such other jurisdiction for
purposes of the provisions hereof relating to such perfection, effect of perfection or non-perfection or priority. 

        "United States" means the United States of America, including the States and the District of Columbia, but excluding its territories and
possessions. 

        (a)    Terms Generally.    The definitions of terms herein (including those incorporated by reference to the UCC or to
another document) apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun includes the corresponding masculine, feminine and neuter forms.
The words "include", "includes" and "including" shall be
deemed to be followed by the phrase "without limitation". The word "will" shall be construed to have the
same meaning and effect as the word "shall". Unless the context requires otherwise, (a) any definition of or reference to any agreement,
instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or 

S-6

 

otherwise
modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such
Person's successors and assigns, (c) the words "herein", "hereof" and
"hereunder", and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof,
(d) all references herein to Sections, Exhibits and Schedules shall be construed to refer to Sections of, and Exhibits and Schedules to, this Agreement and (e) the word
"property" shall be construed to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract
rights. 

        Section 2.    Grant of Transaction Liens.    

        (a)   QSC,
in order to secure its Additional Senior Secured Obligations (if any) designated in accordance with Section 18 to be secured by Transaction Liens on Corp.
Equity Collateral (defined below) pursuant to this Agreement, grants to the Collateral Agent for the benefit of the Additional Senior Secured Parties a continuing security interest, subordinate to all
Liens granted under the Senior Security Agreement, with the priority in respect of proceeds of Collateral specified in Section 11, in all the following property of QSC (collectively, the
"Corp. Equity Collateral"), whether now owned or existing or hereafter acquired or arising and regardless of where located: 

	(i)
	Corp.
Equity Interests;

	(ii)
	all
rights and privileges of QSC with respect to Corp. Equity Interests, and all dividends, distributions and other payments with respect to such Corp. Equity
Interests; and

	(iii)
	all
Proceeds of the Collateral described in the foregoing clauses (i) and (ii). 

        (b)   QSC,
(x) in order to secure its QSC Notes Secured Obligations, grants to the Collateral Agent for the benefit of the QSC Notes Trustee a continuing security
interest, subordinate to all Liens securing Senior Secured Obligations whether now existing or granted in the future, with the priority in respect of proceeds of Collateral specified in
Section 11, (y) in order to secure its Existing 2008 Notes Secured Obligations, grants to the Collateral Agent for the benefit of the Existing 2008 Notes Trustee a continuing security
interest, subordinate to all Liens securing Senior Secured Obligations whether now existing or granted in the future, with the priority in respect of proceeds of Collateral specified in
Section 11, and (z) in order to secure its Additional Pari Passu Secured Obligations (if any) that are designated in accordance with Section 18 to be secured by Transaction Liens
on Corp. Equity Collateral pursuant to this Agreement, grants to the Collateral Agent for the benefit of the Additional Pari Passu Secured Parties a continuing security interest, subordinate to all
Liens securing Senior Secured Obligations whether now existing or granted in the future, with the priority in respect of proceeds of Collateral specified in Section 11, in each case, in all of
the Corp. Equity Collateral, whether now owned or existing or hereafter acquired or arising and regardless of where located. 

        (c)   QSC,
in order to secure its Additional Senior Secured Obligations (if any) designated in accordance with Section 18 to be secured by Transaction Liens on QSC
Asset Collateral (defined below) pursuant to this Agreement, grants to the Collateral Agent for the benefit of the Additional Senior Secured Parties a continuing security interest, subordinate to all
Liens granted under the Senior Security Agreement, with the priority in respect of proceeds of Collateral specified in Section 11, in all the following property of QSC (collectively, the
"QSC Asset Collateral"), whether now owned or existing or hereafter acquired or arising and regardless of where located: 

	(i)
	any
Debt owing to QSC, whether or not evidenced by a note or Instrument (and including, without limitation, any note or other Instrument evidencing Debt owing from Qwest
Wireless L.L.C. to QSC), and all of QSC's rights and privileges with respect to such Debt and all interest, distributions and other payments with respect thereto; and

	(ii)
	all
Proceeds of the Collateral described in the foregoing clause (i). 

S-7

 

        (d)   QSC,
(x) in order to secure its QSC Notes Secured Obligations, grants to the Collateral Agent for the benefit of the QSC Notes Trustee a continuing security
interest, subordinate to all Liens securing Senior Secured Obligations whether now existing or granted in the future, with the priority in respect of proceeds of Collateral specified in
Section 11, (y) in order to secure its Existing 2008 Notes Secured Obligations, grants to the Collateral Agent for the benefit of the Existing 2008 Notes Trustee a continuing security
interest, subordinate to all Liens securing Senior Secured Obligations whether now existing or granted in the future, with the priority in respect of proceeds of Collateral specified in
Section 11, and (z) in order to secure its Additional Pari Passu Secured Obligations (if any) that are designated in accordance with Section 18 to be secured by Transaction Liens
on QSC Asset Collateral pursuant to this Agreement, grants to the Collateral Agent for the benefit of the Additional Pari Passu Secured Parties a continuing security interest, subordinate to all Liens
securing Senior Secured Obligations whether now existing or granted in the future, with the priority in respect of proceeds of Collateral specified in Section 11, in each case, in all of the
QSC Asset Collateral, whether now owned or, existing or hereafter acquired or arising and regardless of where located. 

        (e)   QSC,
in order to secure its Additional Senior Secured Obligations (if any) designated in accordance with Section 18 to be secured by Transaction Liens on Holdings
Equity Collateral (defined below) pursuant to this Agreement, grants to the Collateral Agent for the benefit of the Additional Senior Secured Parties a continuing security interest, subordinate to all
Liens granted under the Senior Security Agreement, with the priority in respect of proceeds of Collateral specified in Section 11, in all the following property of QSC (collectively, the
"Holdings Equity Collateral"), whether now owned or existing or hereafter acquired or arising and regardless of where located: 

	(i)
	Equity
Interests in QwestDex Holdings;

	(ii)
	all
rights and privileges of QSC with respect to Equity Interests in QwestDex Holdings, and all dividends, distributions and other payments with respect to such Equity
Interests in QwestDex Holdings; and

	(iii)
	all
Proceeds of the Collateral described in the foregoing clauses (i) and (ii). 

        (f)    QSC,
(x) in order to secure its QSC Notes Secured Obligations, grants to the Collateral Agent for the benefit of the QSC Notes Trustee a continuing security
interest, subordinate to all Liens securing Senior Secured Obligations whether now existing or granted in the future, with the priority in respect of proceeds of Collateral specified in
Section 11, (y) in order to secure its Existing 2008 Notes Secured Obligations, grants to the Collateral Agent for the benefit of the Existing 2008 Notes Trustee a continuing security
interest, subordinate to all Liens securing Senior Secured Obligations whether now existing or granted in the future, with the priority in respect of proceeds of Collateral specified in
Section 11, and (z) in order to secure its Additional Pari Passu Secured Obligations (if any) that are designated in accordance with Section 18 to be secured by Transaction Liens
on Holdings Equity Collateral pursuant to this Agreement, grants to the Collateral Agent for the benefit of the Additional Pari Passu Secured Parties a continuing security interest, subordinate to all
Liens securing Senior Secured Obligations whether now existing or granted in the future, with the priority in respect of proceeds of Collateral specified in Section 11, in each case, in all of
the Holdings Equity Collateral, whether now owned or existing or hereafter acquired or arising and regardless of where located. 

        (g)   QSC,
in order to secure its Additional Senior Secured Obligations (if any) designated in accordance with Section 18 to be secured by Transaction Liens on Future
Restricted Subsidiary Equity Collateral (defined below) pursuant to this Agreement, grants to the Collateral Agent for the benefit of the Additional Senior Secured Parties a continuing security
interest, subordinate to all Liens granted under the Senior Security Agreement, with the priority in respect of proceeds of Collateral specified in Section 11, in all of the following property
of QSC (collectively, the "Future Restricted Subsidiary  

S-8

 

 Equity Collateral"), whether now owned or existing or hereafter acquired or arising and regardless of where located: 

	(i)
	any
other assets of QSC constituting Equity Interests in Restricted Subsidiaries of QSC to the extent that, after the Effective Date, such Equity Interests become
subject to a Lien securing any Qualified Senior Debt (collectively, "Future Restricted Subsidiary Equity Interests") and such Lien secures obligations
of QSC;

	(ii)
	all
rights and privileges of QSC with respect to Future Restricted Subsidiary Equity Interests, and all dividends, distributions and other payments with respect to such
Future Restricted Subsidiary Equity Interests; and

	(iii)
	all
Proceeds of the Collateral described in the foregoing clauses (i) and (ii). 

        (h)   QSC,
(x) in order to secure its QSC Notes Secured Obligations, grants to the Collateral Agent for the benefit of the QSC Notes Trustee a continuing security
interest, subordinate to all Liens securing Senior Secured Obligations whether now existing or granted in the future, with the priority in respect of proceeds of Collateral specified in
Section 11, (y) in order to secure its Existing 2008 Notes Secured Obligations, grants to the Collateral Agent for the benefit of the Existing 2008 Notes Trustee a continuing security
interest, subordinate to all Liens securing Senior Secured Obligations whether now existing or granted in the future, with the priority in respect of proceeds of Collateral specified in
Section 11, and (z) in order to secure its Additional Pari Passu Secured Obligations (if any) that are designated in accordance with Section 18 to be secured by Transaction Liens
on Future Restricted Subsidiary Equity Collateral pursuant to this Agreement, grants to the Collateral Agent for the benefit of the Additional Pari Passu Secured Parties a continuing security
interest, subordinate to all Liens securing Senior Secured Obligations whether now existing or granted in the future, with the priority in respect of proceeds of Collateral specified in
Section 11, in each case, in all of the Future Restricted Subsidiary Equity Collateral, whether now owned or existing or hereafter acquired or arising and regardless of where located. 

        (i)    With
respect to each right to payment or performance included in the Collateral from time to time, the Transaction Liens granted therein include a continuing security
interest in (i) any Supporting Obligation that supports such payment or performance and (ii) any Lien that (x) secures such right to payment or performance or (y) secures
any such Supporting Obligation. 

        (j)    The
Transaction Liens are granted as security only and shall not subject the Collateral Agent or any other Secured Parties to, or transfer or in any way affect or
modify, any obligation or liability of QSC with respect to any of the Collateral or any transaction in connection therewith. 

        (k)   If
the governmental body or official having jurisdiction over any Regulated Entity determines that the pledge of the shares of capital stock of such Regulated Entity
hereunder constitutes the acquisition of or a change of control with respect to such Regulated Entity as to which the prior approval of such governmental body or official was required, then,
immediately upon QSC's (1) written memorialization of oral notice or (2) receipt of written notice from such governmental body or official of such determination and without any action on
the part of the Collateral Agent or any other Person, such pledge shall be rendered void ab initio and of no effect. Upon any such occurrence, (i) the Collateral Agent shall, at QSC's written
request and expense, return all certificates representing such capital stock to QSC and execute and deliver such documents as QSC shall reasonably request to evidence QSC's retention of all rights in
such capital stock and (ii) QSC shall promptly submit a request to the relevant governmental body or official for approval of the pledge of such shares to the Collateral Agent hereunder and,
upon receipt of such approval, shall forthwith deliver to the Collateral Agent certificates representing all the outstanding shares of capital stock of such Regulated Entity to be held as Collateral
hereunder. 

S-9

 

        Section 3.    Further Assurances; General Covenants.    QSC covenants as follows: 

        (a)   QSC
will, from time to time, at its own expense, execute, deliver, file and record any statement, assignment, instrument, document, agreement or other paper and take any
other action (including any filing of financing or continuation statements under the UCC) that from time to time may be necessary or desirable or that the Collateral Agent may request, in order to: 

	(i)
	create,
preserve, perfect, confirm or validate the Transaction Liens on the Collateral;

	(ii)
	enable
the Collateral Agent and the other Secured Parties to obtain the full benefits of the Security Documents; or

	(iii)
	enable
the Collateral Agent to exercise and enforce any of its rights, powers and remedies with respect to any of the Collateral. 

        To
the extent permitted by applicable law, QSC authorizes the Collateral Agent to execute and file such financing statements or continuation statements without QSC's signature appearing
thereon. QSC agrees that a carbon, photographic, photostatic or other reproduction of this Agreement or of a financing statement is sufficient as a financing statement. QSC constitutes the Collateral
Agent its attorney-in-fact to execute all filings required or so requested for the foregoing purposes, all acts of such attorney being hereby ratified and confirmed; and such
power, being coupled with an interest, shall be irrevocable until all the Transaction Liens granted by QSC terminate pursuant to Section 17. QSC will pay the costs of, or incidental to, any
recording or filing of any financing or continuation statements or other documents recorded or filed pursuant hereto. 

        (b)   QSC
will, promptly upon request, provide to the Collateral Agent all information and evidence concerning the Collateral that the Collateral Agent may reasonably request
from time to time to enable it to enforce the provisions of the Security Documents. 

        (c)   QSC
agrees to exercise commercially reasonable efforts: 

	(i)
	to
cooperate with the Collateral Agent to obtain any approval of the FCC or the PUCs for any action or transaction contemplated by this Agreement which is then required
by applicable law; and

	(ii)
	after
the occurrence of an Event of Default, cooperate with the Collateral Agent to obtain any approval of the FCC, any PUC and any other Governmental Authority which
may be required, necessary or appropriate under the FCC's, such PUC's or such Governmental Authority's rules and regulations in connection with any sale or transfer of any of the capital stock of
Corp. or QwestDex Holdings. 

        Section 4.    Acknowledgment.    

        (a)   The
Collateral Agent on behalf of the Secured Parties acknowledges and recognizes that Corp. is a Regulated Entity, and that the ability of creditors (including the
Secured Parties) to exercise rights in connection with any pledge of, or security interest in, the capital stock of Corp. is subject to any applicable restrictions or prohibitions, before or after any
default by QSC, (i) on the right of any Person to acquire control of or vote the stock of Corp. without the prior consent of the FCC or of certain PUCs or other Governmental Authorities,
(ii) on the right of QSC to afford its creditors (including the Secured Parties) or creditors of certain Affiliates of Corp. recourse to or against the assets of Corp., or (iii) to
foreclose on, or otherwise acquire ownership of, the capital stock of Corp. 

        (b)   The
Collateral Agent on behalf of the Secured Parties acknowledges and agrees that the pledge of the capital stock of Corp. does not afford the Secured Parties (or any
other creditor of QSC) (i) any recourse to or against the assets of Corp., including without limitation any assets subject to regulation by the FCC or any PUC, or (ii) ownership of, or
the right or power to vote, such capital stock or the right or power to control the operations, management or policies of Corp. 

S-10

 

        (c)   The
Collateral Agent on behalf of the Secured Parties agrees that, notwithstanding anything to the contrary contained in this Agreement, any other Security Document, the
Indenture or the Guaranty, the Collateral Agent shall not, without the prior consent of the FCC and, to the extent required by applicable law, the PUCs or other Governmental Authorities, take any
action pursuant to this Agreement or any other Security Document, whether before or after any Event of Default, including without limitation any exercise of remedies, that would constitute or result
in: 

	(i)
	The
exercise by the Collateral Agent on behalf of the Secured Parties of control over Corp. or any of its Subsidiaries, including without limitation, directly or
indirectly: 

        (A)  Electing
or removing any director or officer of Corp. or any of its Subsidiaries; 

        (B)  Causing
the payment or making of any dividend or other distribution with respect to the capital stock of Corp.; 

        (C)  Preventing
or restricting QSC from exercising its power to vote, or give consents with respect to, its shares of the capital stock of Corp.; and 

        (D)  Managing
or directing the operations or policies of Corp.; 

	(ii)
	The
liquidation, dissolution, reorganization, merger, consolidation or recapitalization, or sale, transfer, mortgage, lease or other disposition of the assets, of
Corp.;

	(iii)
	Any
application of, or other recourse to or against, the assets of Corp. or any of its Subsidiaries that are Regulated Entities to the payment, setoff, or reduction of
the Secured Obligations;

	(iv)
	The
sale, disposition or transfer of the capital stock of Corp.; or

	(v)
	Calling
any meeting of shareholders or of the Board of Directors of Corp. (or any committee thereof) or voting, giving consent or exercising any other right as a
shareholder of Corp. 

        (d)   The
Collateral Agent on behalf of the Secured Parties acknowledges and recognizes that QwestDex Holdings may be a Regulated Entity in certain States, and that the
ability of creditors (including the Secured Parties) to exercise rights in connection with any pledge of, or security interest in, the capital stock of QwestDex Holdings may be subject to any
applicable restrictions or prohibitions, before or after any default by QSC, on the right of any Person (i) to acquire control of or vote the stock of QwestDex Holdings without the prior
consent of certain PUCs or (ii) to foreclose on, or otherwise acquire ownership of, the capital stock of QwestDex Holdings. 

        (e)   The
Collateral Agent on behalf of the Secured Parties acknowledges and agrees that the pledge of the capital stock of QwestDex Holdings does not afford the Secured
Parties (or any other creditor of QSC) ownership of, or the right or power to vote, such capital stock or the right or power to control the operations, management or policies of QwestDex Holdings. 

        (f)    The
Collateral Agent agrees that, notwithstanding anything to the contrary contained in this Agreement, any other Security Document, the Indenture or the Guaranty, the
Collateral Agent shall not, without the prior consent of the PUCs, to the extent required by applicable law, take any action pursuant to this Agreement, or any other Security Document, whether before
or after any Event of Default, including without limitation any exercise of remedies, that would constitute or result in: 

	(i)
	The
exercise by the Collateral Agent of control over QwestDex Holdings, any of its Subsidiaries or any of its assets, including without limitation, directly or
indirectly: 

        (A)  Electing
or removing any director or officer of QwestDex Holdings or any of its Subsidiaries; 

S-11

 

        (B)  Causing
the payment or making of any dividend or other distribution with respect to the capital stock of QwestDex Holdings; 

        (C)  Preventing
or restricting QSC from exercising its power to vote, or give consents with respect to, its shares of the capital stock of QwestDex Holdings; and 

        (D)  Managing
or directing the operations or policies of QwestDex Holdings; 

	(ii)
	The
liquidation, dissolution, reorganization, merger, consolidation or recapitalization, or sale, transfer, mortgage, lease or other disposition of the assets, of
QwestDex Holdings;

	(iii)
	The
sale, disposition or transfer of the capital stock of QwestDex Holdings; or

	(iv)
	Calling
any meeting of shareholders or of the Board of Directors of QwestDex Holdings (or any committee thereof) or voting, giving consent or exercising any other right
as a shareholder of QwestDex Holdings. 

        Section 5.    Collateral Accounts.    (a) If and when required for purposes hereof, the Collateral Agent
will establish one or more accounts (each, a "Collateral Account"), in the name and under the exclusive control of the Collateral Agent and subject (to
the extent necessary or advisable in the sole discretion of the Collateral Agent) to an Account Control Agreement, into which all amounts owned by QSC that are to be deposited therein pursuant to this
Section 5 and Section 8 shall be deposited from time to time. Each Collateral Account will be operated as provided in this Section and Section 7. 

        (b)   Subject
to Section 11(e), The Collateral Agent shall deposit in the Collateral Account of QSC: 

	(i)
	each
Cash Distribution required by Section 8 to be deposited therein; and

	(ii)
	each
amount realized or otherwise received by the Collateral Agent with respect to QSC's assets upon any exercise of remedies pursuant to any Security Document. 

        (c)   The
Collateral Agent shall maintain such records and/or establish such sub-accounts as shall be required to enable it to identify the amounts held in each
Collateral Account from time to time pursuant to each clause of subsection (b) of this Section, as applicable. 

        Section 6.    Instruments/Certificated Securities.    Except as to actions to be taken by the Collateral Agent,
QSC hereby represents, warrants and covenants as follows with respect to any Pledged Instruments and Pledged Certificated Securities: 

        (a)   As
of the Effective Date, pursuant to the Senior Security Agreement, QSC has delivered to the Senior Collateral Agent all Pledged Instruments required to be so delivered
by the Senior Security Agreement. If, at any time after the Effective Date QSC acquires any other Instrument constituting a Pledged Instrument, QSC will promptly deliver such Instrument to the
Collateral Agent as Collateral hereunder; provided that QSC shall not be required to deliver any Pledged Instrument to the Collateral Agent if
(i) (x) the obligor under such Pledged Instrument is not an Affiliate of QwestDex and (y) the aggregate principal or face amount of such instrument does not exceed $500,000 and
(z) the sum of the aggregate principal or face amount of such instrument and the aggregate principal or face amount of
all other Pledged Instruments not delivered to (A) the Collateral Agent in reliance on this proviso and (b) the Senior Collateral Agent in reliance on the proviso in Section 7(a)
of the Senior Security Agreement, does not exceed $5,000,000 or (ii) such Instrument has been delivered to the Senior Collateral Agent pursuant to the Senior Security Agreement or, if the
Senior Release Conditions have been satisfied, to any collateral agent or secured party under any Secured Agreement granting Liens in such Pledged Instrument in favor of the holders of any Additional
Senior Secured Obligations. 

        (b)   So
long as no Event of Default shall have occurred and be continuing, the Collateral Agent will, promptly upon request by QSC, make appropriate arrangements for making
any 

S-12

 

Pledged
Instrument available to QSC for purposes of presentation, collection or renewal (any such arrangement to be effected, to the extent deemed appropriate by the Collateral Agent, against trust
receipt or like document). 

        (c)   As
of the Effective Date, pursuant to the Senior Security Agreement, QSC has delivered to the Senior Collateral Agent all certificates representing Pledged Certificated
Securities. If at any time after the Effective Date, QSC acquires any other certificate representing a Pledged Certificated Security, QSC will immediately deliver such certificate to the Collateral
Agent as Collateral hereunder to the extent it has not delivered the same (i) to the Senior Collateral Agent pursuant to the Senior Security Agreement or (ii) if the Senior Release
Conditions have been satisfied, to any collateral agent or secured party under any Secured Agreement granting Liens in such Pledged Certificated Security in favor of the holders of any Additional
Senior Secured Obligations. 

        (d)   Collateral
Agent hereby acknowledges, pursuant to Section 9-313 of the UCC, that it holds any Pledged Instruments and any Pledged Certificated
Securities (and, so long as the Collateral Agent is also the Senior Collateral Agent, whether delivered to Collateral Agent pursuant to this Agreement or to the Senior Collateral Agent pursuant to the
Senior Security Agreement) for the benefit of the "Secured Parties" under and as defined in the Senior Security Agreement and the Secured Parties under this Agreement and the holders of any Additional
Senior Secured Obligations or Additional Pari Passu Secured Obligations which are secured by such Pledged Instruments or Pledged Certificated Securities pursuant to any Secured Agreement other than
this Agreement (Collateral Agent hereby disclaiming any duty to such parties (other than duties expressly set forth in this Agreement)). So long as the Senior Collateral Agent is also the Collateral
Agent, upon satisfaction of the Senior Release Conditions, at the written request of all holders of any Additional Senior Secured Obligations (or their respective trustees or like representatives),
which request shall include all instructions for delivery, the Senior Collateral Agent shall deliver all Pledged Instruments and Pledged Certificated Securities in its possession to the collateral
agent or secured party under any Secured Agreement granting Liens in such Pledged Instruments and/or Pledged Certificated Securities in favor of the holders of any Additional Senior Secured
Obligations as specified in such request, so long as such collateral agent or secured party acknowledges in writing that it holds any such Pledged Instruments and any such Pledged Certificated
Securities for the benefit of the Secured Parties under this Agreement and the holders of any Additional Senior Secured Obligations or Additional Pari Passu Secured Obligations which are secured by
such Instruments or Pledged Certificated Securities (but disclaiming any duty to such parties). 

        (e)   All
Pledged Instruments and Pledged Certificated Securities owned by QSC, when delivered to the Collateral Agent, will be indorsed to the order of the Collateral Agent,
or accompanied by duly executed instruments of assignment, with signatures appropriately guaranteed, all in form and substance satisfactory to the Collateral Agent. 

        (f)    If,
at any time when the Collateral Agent and the Senior Collateral Agent are not the same Person and the Senior Release Conditions have not been satisfied, Collateral
Agent obtains Pledged Instruments or Pledged Certificated Securities which QSC is obligated to deliver to the Senior Collateral Agent under Section 7(a) or 11 of the Senior Security Agreement,
Collateral Agent shall promptly notify Senior Collateral Agent thereof in writing and, at the written request of the Senior Collateral Agent, Collateral Agent shall promptly deliver such Pledged
Instruments and/or Pledged Certificated Securities to the Senior Collateral Agent. 

        Section 7.    Operation of Collateral Accounts.    (a) All Cash Distributions received with respect to
assets held in any Collateral Account shall be deposited therein promptly upon receipt thereof. 

S-13

 

        (b)   Funds
held in any Collateral Account may, until withdrawn, be invested and reinvested in such Liquid Investments as QSC shall request from time to time;  provided that (i) if an Event of Default shall
have occurred and be continuing, the Collateral Agent may select such Liquid Investments and
(ii) if such Liquid Investments are to be held in a Securities Account, either (x) the Collateral Agent is the Entitlement Holder with respect to such Liquid Investments or
(y) the relevant Entitlement Holder and the relevant Securities Intermediary shall have theretofore entered into a Securities Account Control Agreement with respect to such Securities Account
and delivered it to the Collateral Agent (which shall enter into the same). 

        (c)   If
an Event of Default shall have occurred and be continuing, the Collateral Agent may (i) retain all cash and investments then held in any Collateral Account,
(ii) liquidate, or instruct the relevant Securities Intermediary to liquidate, any or all investments held therein and/or (iii) withdraw any amounts held therein and apply such amounts
as provided in Section 11. 

        (d)   If
immediately available cash on deposit in any Collateral Account is not sufficient to make any distribution or withdrawal to be made pursuant hereto, the Collateral
Agent will cause to be liquidated, as promptly as practicable, such investments held in or credited to such Collateral Account as shall be required to obtain sufficient cash to make such distribution
or withdrawal and, notwithstanding any other provision hereof, such distribution or withdrawal shall not be made until such liquidation has taken place. 

        Section 8.    Certain Cash Distributions.    Cash Distributions with respect to assets held in a Collateral
Account shall be deposited and held therein, or withdrawn therefrom, as provided in Section 7. 

        Section 9.    Remedies upon Event of Default.    (a) If an Event of Default shall have occurred and be
continuing, the Collateral Agent may exercise (or cause its sub-agents to exercise) any or all of the remedies available to it (or to such sub-agents) (subject, in each case,
to the limitations set forth in Section 4 and Section 10) under the Security Documents. 

        (b)   Without
limiting the generality of the foregoing, if an Event of Default shall have occurred and be continuing, the Collateral Agent may exercise on behalf of the
Secured Parties (subject, in each case, to the limitations set forth in Section 4 and 10) all the rights of a secured party under the UCC (whether or not in effect in the jurisdiction
where such rights are exercised) with respect to any Collateral. 

        Section 10.    Limitation on Rights and Remedies.    Notwithstanding anything herein to the contrary, until
such time as (i) the Senior Release Conditions have been satisfied and (ii) there are no remaining Additional Senior Secured Obligations secured by this Agreement, Silent Collateral
Lienholders shall not be entitled to (A) exercise (or to direct the Collateral Agent to exercise) any rights (including any rights to approve or disapprove any action or inaction by the
Collateral Agent) or remedies with respect to the Collateral, including without limitation the right to (1) enforce any Liens or sell or otherwise foreclose on any portion of the Collateral or
(2) request any action, institute proceedings, give any instructions, make any election, notice account debtors or make collections with respect to all or any portion of the Collateral or
(B) demand, accept or obtain any lien and/or security interest in any Collateral. 

        Section 11.    Application of Proceeds.    (a) Subject to Section 10, if an Event of Default
shall have occurred and be continuing, the Collateral Agent may apply, in accordance with Section 10, (i) any cash held in the Collateral Accounts in respect of any Collateral and
(ii) the proceeds of any sale or other disposition of any Collateral, in the following order of priorities: 

        first, to pay (or provide for the payment of), in accordance with Section 21 of the Senior Security Agreement, the "Secured
Obligations" (as defined in the Senior Security Agreement) secured by such Collateral to the extent the same constitute "Senior Debt" under clauses (1), 

S-14

 

(2) or
(6) of the definition thereof under the Indenture (as in effect on the Effective Date)(which, for the avoidance of doubt, includes all expenses, liabilities, advances, and fees
owing pursuant to clauses "first", "second", "third" and "fourth" of Sections 21(a), 21(b) and 21(c) of the Senior Security Agreement); 

        second, to pay the expenses of such sale or other disposition, including reasonable compensation to agents of and counsel for the
Collateral Agent, and all expenses, liabilities and advances incurred or made by the Collateral Agent in connection with the Security Documents (without duplication, however, of any amounts paid with
respect thereto under the Senior Security Agreement at any time when the Collateral Agent and the Senior Collateral Agent are the same Person (provided, that, for the avoidance of doubt, payment of
independent fees shall not be deemed duplicative)); 

        third, to pay all fees and any other expenses and other amounts then due and payable to the Collateral Agent pursuant to
Section 13, until payment in full of all such Collateral Agent fees and other expenses and amounts shall have been made (without duplication, however, of any amounts paid with respect thereto
under the Senior Security Agreement at any time when the Collateral Agent and the Senior Collateral Agent are the same Person (provided, that, for the avoidance of doubt, payment of independent fees
shall not be deemed duplicative)); 

        fourth, to pay (or provide for the payment thereof pursuant to Section 11(c)) any Additional Senior Secured Obligations secured by
such Collateral (whether pursuant to this Agreement or any other Secured Agreement), ratably or on such other basis as the Secured Agreements governing the same shall provide or as the holders thereof
(or their respective trustees, agents and/or representatives) may direct; provided, that, solely with
respect to proceeds of any Future Restricted Subsidiary Equity Collateral, such proceeds shall be applied ratably (or on such other basis as the Secured Agreements governing the same shall provide or
as the holders thereof (or their respective trustees, agents and/or representatives) may direct) among any Additional Senior Secured Obligations secured by such Collateral and any Qualified Senior
Debt secured by such Collateral to the extent such Qualified Senior Debt is not designated as an Additional Senior Secured Obligation hereunder; 

        fifth, to pay (or provide for the payment thereof pursuant to Section 11(c)) ratably (i) the QSC Notes Secured Obligations,
(ii) the Existing 2008 Notes Secured Obligations and (iii) any Additional Pari Passu Secured Obligations secured by such Collateral (which ratable share shall be paid to the holders of
such Additional Pari Passu Secured Obligations ratably or on such other basis as the Secured Agreements governing the same shall provide or as the holders thereof (or their respective trustees, agents
and/or representatives) may direct), until payment in full of all such obligations shall have been made (or so provided for); and 

        finally, to pay to QSC, or as a court of competent jurisdiction may direct, any surplus then remaining from the proceeds of the
Collateral. 

        (b)   The
Collateral Agent may make such distributions hereunder in cash or in kind or, on a ratable basis, in any combination thereof. 

        (c)   If
at any time any portion of any monies collected or received by the Collateral Agent would, but for the provisions of this Section 11(c), be payable pursuant to
Section 11(a), in respect of a Contingent Secured Obligation, the Collateral Agent shall not apply any monies to pay such Contingent Secured Obligation but instead shall request the holder
thereof, at least 10 days before each proposed distribution hereunder, to notify the Collateral Agent as to the maximum amount of such Contingent Secured Obligation if then ascertainable. If
the holder of such Contingent Secured Obligation does not notify the Collateral Agent of the maximum ascertainable amount thereof at least two Business Days before such distribution, such holder will
not be entitled to share in such distribution. If such holder 

S-15

 

does
so notify the Collateral Agent as to the maximum ascertainable amount thereof, the Collateral Agent will allocate to such holder a portion of the monies to be distributed in such distribution,
calculated as if such Contingent Secured Obligation were outstanding in such maximum ascertainable amount. However, the Collateral Agent will not apply such portion of such monies to pay such
Contingent Secured Obligation, but instead will hold such monies or invest such monies in Liquid Investments. All such monies and Liquid Investments and all proceeds thereof will constitute Collateral
hereunder, but will be subject to distribution in accordance with this Section 11(c) rather than Section 11(a), as applicable. The Collateral Agent will hold all such monies and Liquid
Investments and the net proceeds thereof in trust until all or part of such Contingent Secured Obligation becomes a Non-Contingent Secured Obligation, whereupon the Collateral Agent at the
request of the relevant Secured Parties will apply the amount so held in trust to pay such Non-Contingent Secured Obligation; provided that,
if the other Secured Obligations theretofore paid pursuant to the same clause of Section 11(a) were not paid in full, the Collateral Agent will apply the amount so held in trust to pay the same
percentage of such Non-Contingent Secured Obligation as the percentage of such other Secured Obligations theretofore paid pursuant to the same clause of Section 11(a). If
(i) the holder of such Contingent Secured Obligation shall advise the Collateral Agent that no portion thereof remains in the category of a Contingent Secured Obligation and (ii) the
Collateral Agent still holds any amount held in trust pursuant to this Section 11(c) in respect of such Contingent Secured Obligation (after paying all amounts payable pursuant to the preceding
sentence with respect to any portions thereof that became Non-Contingent Secured Obligations), such remaining amount will be applied by the Collateral Agent in the order of priorities set
forth in Section 11(a). 

        (d)   In
making the payments and allocations required by this Section, the Collateral Agent may rely upon information supplied to it pursuant to Section 16(f). All
distributions made by the Collateral Agent pursuant to this Section shall be final (except in the event of manifest error) and the Collateral Agent shall have no duty to inquire as to the application
by any Secured Parties of any amount distributed to it. 

        (e)   If,
at any time when the Collateral Agent and the Senior Collateral Agent are not the same Person and the Senior Release Conditions have not been satisfied, Collateral
Agent obtains Proceeds of Collateral which would be applied to the payment of the "Secured Obligations" (as defined in the Senior Security Agreement) secured by such Collateral pursuant to clause
"first" of Section 11(a), above, Collateral Agent shall promptly notify Senior Collateral Agent thereof in writing, and at the written request of the Senior Collateral Agent, Collateral Agent
shall deliver such Proceeds to the Senior Collateral Agent. 

        Section 12.    Certain Intercreditor Arrangements in Bankruptcy.    

        (a)   Except
as otherwise specifically permitted in this Section 12(a): 

	(i)
	Until
such time as the Senior Release Conditions have been satisfied and all "Secured Obligations" (as defined in the Senior Security Agreement) that constitute "Senior
Debt" under clauses (1), (2) or (6) of the definition thereof in the Indenture (as in effect on the Effective Date) shall have been paid in full in cash, none of the Silent Collateral
Lienholders shall assert, or make any request or demand upon the Collateral Agent to assert any claim, motion, objection, or argument in respect of the Collateral in connection with any Bankruptcy
Event in respect of QSC which could otherwise be asserted or raised in connection with such Bankruptcy Event by any Silent Collateral Lienholder as a creditor and/or equity holder of QSC, including
without limitation any claim, motion, objection or argument seeking or opposing adequate protection or relief from the automatic stay in respect of the Collateral.

	(ii)
	from
and after the satisfaction of the Senior Release Conditions and until all Additional Senior Secured Obligations have been paid in full in cash, none of the Silent
Collateral 

S-16

 

Lienholders
shall assert, or make any request or demand upon the Collateral Agent to assert any claim, motion, objection, or argument in respect of the Collateral in connection with any Bankruptcy
Event in respect of QSC which could otherwise be asserted or raised in connection with such Bankruptcy Event by any such Silent Collateral Lienholder as a creditor and/or equity holder of QSC,
including without limitation any claim, motion, objection or argument seeking or opposing adequate protection or relief from the automatic stay in respect of the Collateral. 

	(iii)
	Without
limiting the generality of the foregoing, if a Bankruptcy Event occurs in respect of QSC: 

        (A)  the
Senior Collateral Agent, or after the Senior Release Conditions have been satisfied, the Collateral Agent (in each case, on behalf of the First Tier Secured Parties)
may, without seeking or obtaining the consent of the Silent Collateral Lienholders as holders of an interest in the Collateral, contest or consent to the use of cash collateral on such terms and
conditions and in such amounts as the First Tier Secured Parties, in their sole discretion, may decide in accordance with the applicable Secured Agreements; 

        (B)  the
First Tier Secured Parties (or such members of the First Tier Secured Parties as are required for such purpose pursuant to the applicable Secured Agreements) may, in
accordance with the applicable Secured Agreements, consent to postpetition financing (whether provided by a First Tier Secured Party or by a third party) for QSC and its Subsidiaries secured by a
priority lien on the Collateral, in each case pursuant to Section 364 of the Bankruptcy Code or other applicable law and on such terms and conditions and in such amounts as such First Tier
Secured Parties, in their sole discretion, may decide, without seeking or obtaining the consent of the Silent Collateral Lienholders, as holders of an interest in the Collateral, and the Silent
Collateral Lienholders shall not oppose such financing (or the granting of a priority lien on the Collateral in connection therewith) as holders of an interest in the Collateral; 

        (C)  the
Silent Collateral Lienholders shall not oppose the use by QSC of cash collateral on the basis that its interest in the Collateral is impaired by such use or
inadequately protected by such use to the extent such use has been approved by the First Tier Secured Parties (or such members of the First Tier Secured Parties as are required for such purpose
pursuant to the applicable Secured Agreements) in accordance with the applicable Secured Agreements; 

        (D)  none
of the Silent Collateral Lienholders shall oppose any sale or other disposition of any assets comprising part of the Collateral free and clear of security
interests, liens or other claims of any party, including the Silent Collateral Lienholders, under Section 363 of the Bankruptcy Code on the basis that the interest of the Silent Collateral
Lienholders in the Collateral is impaired by such sale or inadequately protected as a result of such sale if the First Tier Secured Parties (or such members of the First Tier Secured Parties as are
required for such purpose pursuant to the applicable Secured Agreements) have consented to such sale or disposition of such assets in accordance with the applicable Secured Agreements. 

	(iv)
	To
the extent that any First Tier Secured Party (in its capacity as such) realizes any amounts, or otherwise receives any payments, with respect to any First Tier
Collateral (or Proceeds thereof) which payments are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other
party under any bankruptcy law, state or federal law, common law, or equitable cause, then, to the extent of such payment or proceeds received, the First Tier Secured Obligations, or part thereof,
intended to be satisfied shall be revived and continue in full force and effect enjoying all rights and benefits of this Agreement or any other applicable Secured Agreement as if such payments or
Proceeds had not been received by such First Tier Secured Party. 

S-17

  

	(v)
	Notwithstanding
any other provision of this Section 12(a), the Secured Parties shall be entitled to file any necessary responsive or defensive pleadings in
opposition to any motion, claim, adversary proceeding or other pleading made by any person objecting to or otherwise seeking the disallowance of the claims of such Secured Party. 

        (b)   (i) All
rights and interests of the First Tier Secured Parties hereunder in respect of the First Tier Secured Obligations, and all agreements and obligations of
the Silent Collateral Lienholders under this Section 12 shall, in each case, remain in full force and effect irrespective of: 

        (A)  any
lack of validity or enforceability of any Secured Agreement or any other agreement or instrument relating thereto; 

        (B)  any
change in the time, manner or place of, or in any other term of, all or any of the First Tier Secured Obligations or any amendment or waiver of or any consent to
departure from any provision of the Secured Agreements with respect to same, provided that such change, amendment, waiver or consent is permitted
pursuant to the terms of the applicable Secured Agreements; 

        (C)  any
exchange, release, nonperfection, or unenforceability of any lien or security interest in any Collateral, or any release or amendment or waiver of or consent to
departure from any guarantee, for all or any of the First Tier Secured Obligations; or 

        (D)  any
other circumstances which might otherwise constitute a defense available to, or a discharge of, QSC in respect of the First Tier Secured Obligations or any other
Secured Obligation, as the case may be. 

        Section 13.    Fees and Expenses; Indemnification.    (a) QSC shall forthwith upon demand pay to the
Collateral Agent the amount of any fees that QSC shall have agreed in writing to pay to the Collateral Agent and that shall have become due and payable in accordance with such written agreement. QSC
agrees to pay to the Collateral Agent forthwith upon demand (in each case, at all times when the Senior Collateral Agent and the Collateral Agent are the same Person, without duplication of amounts
paid under Section 23 of the Senior Security Agreement): 

	(i)
	the
amount of any taxes that the Collateral Agent may have been required to pay by reason of the Transaction Liens or to free any Collateral from any other Lien thereon
that is prohibited by any Secured Agreement;

	(ii)
	the
amount of any and all reasonable out-of-pocket expenses, including transfer taxes and reasonable fees and expenses of counsel and other
experts, that the Collateral Agent may incur in connection with (x) the administration or enforcement of the Security Documents, including such reasonable expenses as are incurred to preserve
the value of the Collateral or the validity, perfection, rank or value of any Transaction Lien, (y) the collection, sale or other disposition of any Collateral or (z) the exercise by the
Collateral Agent of any of its rights or powers under and in accordance with the Security Documents; and

	(iii)
	the
amount required to indemnify the Collateral Agent for, or hold it harmless and defend it against (in each case, to the extent permitted by law), any loss,
liability or expense (including the reasonable fees and expenses of its counsel and any experts or sub-agents appointed by it hereunder) incurred or suffered by the Collateral Agent in
connection with the Security Documents, except to the extent that such loss, liability or expense arises from the Collateral Agent's gross negligence or willful misconduct. 

        Any
such amount not paid to the Collateral Agent on demand will bear interest for each day thereafter until paid at a rate per annum equal to the sum of 2% plus (x) so long as any
Loans under (and as defined in) the Term Credit Agreement are outstanding, the rate applicable to Base Rate 

S-18

 

Loans
under (and as defined in) the Term Credit Agreement for such day or (y) if no such Loans under (and as defined in) the Term Credit Agreement are outstanding, the rate applicable to Base
Rate Loans under (and as defined in) the Revolver Credit Agreement for such day and (z) if neither clause (x) nor (y) is applicable or if the Collateral Agent and the Senior
Collateral Agent are not the same Person, a rate equal to the combined average interest rate, weighted to reflect outstanding principal amounts, payable on the QSC Notes (or, if such QSC Notes have
been paid in full, such rate as in effect immediately prior to such repayment). 

        (b)   If
any transfer tax, documentary stamp tax or other tax is payable in connection with any transfer or other transaction provided for in the Security Documents, QSC
agrees to pay such tax and provide any required tax stamps to the Collateral Agent or as otherwise required by law. 

        (c)   At
all times when the Collateral Agent and the Senior Collateral Agent are the same Person, amounts payable under this Section 13 shall be without duplication of
amounts paid to Senior Collateral Agent pursuant to the Senior Security Agreement or any other Secured Agreement (provided, that, for the avoidance of doubt, payment of independent fees shall not be
deemed duplicative)). 

        Section 14.    Authority to Administer Collateral.    QSC irrevocably appoints the Collateral Agent its true
and lawful attorney, with full power of substitution, in the name of QSC, any Secured Parties or otherwise, for the sole use and benefit of the Secured Parties, but at QSC's expense, to the extent
permitted by law (and subject to the limitations set forth in Section 10) to exercise, at any time and from time to time while an Event of Default shall have occurred and be continuing, all or
any of the following powers with respect to all or any of the Collateral: 

        (a)   to
demand, sue for, collect, receive and give acquittance for any and all monies due or to become due upon or by virtue thereof, 

        (b)   to
settle, compromise, compound, prosecute or defend any action or proceeding with respect thereto, 

        (c)   to
sell, lease, license or otherwise dispose of the same or the proceeds or avails thereof, as fully and effectually as if the Collateral Agent were the absolute owner
thereof, and 

        (d)   to
extend the time of payment of any or all thereof and to make any allowance or other adjustment with reference thereto; 

provided that, except in the case of Collateral that is perishable or threatens to decline speedily in value or is of a type customarily sold on a
recognized market, the Collateral Agent will give QSC at least ten days' prior written notice of the time and place of any public sale thereof or the time after which any private sale or other
intended disposition thereof will be made. Any such notice shall (i) contain the information specified in UCC Section 9-613, (ii) be Authenticated and (iii) be
sent to the parties required to be notified pursuant to UCC Section 9-611(c); provided further that, if the Collateral Agent fails to
comply with this sentence in any respect, its liability for such failure shall be limited to the liability (if any) imposed on it as a matter of law under the UCC. 

        Section 15.    Limitation on Duty in Respect of Collateral.    Beyond the exercise of reasonable care in the
custody and preservation thereof, the Collateral Agent will have no duty as to any Collateral in its possession or control or in the possession or control of any sub-agent or bailee or any
income therefrom or as to the preservation of rights against prior parties or any other rights pertaining thereto. The Collateral Agent will be deemed to have exercised reasonable care in the custody
and preservation of the Collateral in its possession or control if such Collateral is accorded treatment substantially equal to that which it accords its own property, and will not be liable or
responsible for any loss or damage to any Collateral, or for any diminution in the value thereof, by reason of any act or omission of any 

S-19

 

sub-agent
or bailee selected by the Collateral Agent in good faith, except to the extent that such liability arises from the Collateral Agent's gross negligence or willful misconduct. 

        Section 16.    General Provisions Concerning the Collateral Agent.    (a) Authority. The Collateral
Agent is authorized to take such actions and to exercise such powers as are delegated to the Collateral Agent by the terms of the Security Documents, together with such actions and powers as are
reasonably incidental thereto. 

        (b)    Rights and Powers as a Secured Party.    To the extent the bank serving as the Collateral Agent is also a
Secured Party, such entity shall, in its capacity as a Secured Party, have the same rights and powers as any other Secured Party and may exercise the same as though it were not the Collateral Agent.
Such bank and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with any Qwest Company or Affiliate thereof as if it were not the Collateral Agent
hereunder. 

        (c)    Limited Duties and Responsibilities.    The Collateral Agent shall not have any duties or obligations under the
Security Documents except those expressly set forth therein. Without limiting the generality of the foregoing, (a) the Collateral Agent shall not be subject to any fiduciary or other implied
duties, regardless of whether an Event of Default has occurred and is continuing, (b) the Collateral Agent shall not have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated by the Security Documents that the Collateral Agent is required in writing to exercise by the holders of a majority of the
principal amount of the relevant First Tier Secured Obligations (or if none, each remaining Class of Secured Obligations affected thereby) (or, in either case, such other number or percentage of such
holders as may be necessary under the circumstances under the applicable Secured Agreements governing such First Tier Obligations or Class of Secured Obligations, as the case may be), and
(c) except as expressly set forth herein, the Collateral Agent shall not have any duty to disclose, and shall not be liable for any failure to disclose, any information relating to any Qwest
Company that is communicated to or obtained by the bank serving as Collateral Agent or any of its Affiliates in any capacity. The Collateral Agent shall not be liable for any action taken or not taken
by it with the consent or at the request of the holders of a majority of the principal amount of the relevant First Tier Secured Obligations (or if none, each remaining Class of Secured Obligations
affected thereby)(or, in either case such other number or percentage of such holders as may be necessary under the circumstances under the applicable Secured Agreements governing such First Tier
Obligations or Class of Secured Obligations, as the case may be) or in the absence of its own gross negligence or willful misconduct. The Collateral Agent shall not be
responsible for the existence, genuineness or value of any Collateral or for the validity, perfection, priority or enforceability of any Transaction Lien, whether impaired by operation of law or by
reason of any action or omission to act on its part under the Security Documents. The Collateral Agent shall be deemed not to have knowledge of any Event of Default unless and until written notice
thereof is given to the Collateral Agent by a Secured Party, and the Collateral Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or
representation made in or in connection with any Security Document, (ii) the contents of any certificate, report or other document delivered thereunder or in connection therewith,
(iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth in any Security Document, (iv) the validity, enforceability, effectiveness
or genuineness of any Security Document or any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in any Security Document. 

        (d)    Authority to Rely on Certain Writings, Statements and Advice.    The Collateral Agent shall be entitled to rely
on, and shall not incur any liability for relying on, any notice, request, certificate, consent, statement, instrument, document or other writing believed by it to be genuine and to have been signed
or sent by the proper Person. The Collateral Agent also may rely on any statement made to it orally or by telephone and believed by it to be made by the proper Person, and shall not incur any 

S-20

 

liability
for relying thereon. The Collateral Agent may consult with legal counsel (who may be counsel for QSC), independent accountants and other experts selected by it, and shall not be liable for
any action taken or not taken by it in accordance with the advice of any such counsel, accountant or expert. 

        (e)    Sub-Agents and Related Parties.    The Collateral Agent may perform any of its duties and exercise
any of its rights and powers through one or more sub-agents appointed by it. The Collateral Agent and any such sub-agent may perform any of its duties and exercise any of its
rights and powers through its Related Parties. The exculpatory provisions of Section 15 and this Section shall apply to any such sub-agent and to the Related Parties of the
Collateral Agent and any such sub-agent. 

        (f)    Information as to Secured Obligations and Actions by Secured Parties.    For all purposes of the Security
Documents, including determining the amounts of the Secured Obligations and whether a Secured Obligation is a Contingent Secured Obligation or not, or whether any action has been taken under any
Secured Agreement, the Collateral Agent will be entitled to rely on information from (i) its own records, (ii) any Secured Party (or any trustee, agent or similar representative
designated pursuant to Section 18 to supply such information) for information as to its Secured Obligations and actions taken by it, to the extent that the Collateral Agent has not obtained
such information from the foregoing sources, and (iii) QSC, to the extent that the Collateral Agent has not obtained information from the foregoing sources. 

        (g)   Within
two Business Days after it receives or sends any notice referred to in this subsection, the Collateral Agent shall send to the Secured Parties any notice given by
the Collateral Agent to QSC, or received by it from QSC, pursuant to Section 9, Section 11, Section 14, Section 16(i) or Section 17. 

        (h)   The
Collateral Agent may refuse to act on any notice, consent, direction or instruction from any Secured Parties or any agent, trustee or similar representative thereof
that, in the Collateral Agent's opinion, (i) is contrary to law or the provisions of any Security Document, (ii) may expose the Collateral Agent to liability (unless the Collateral Agent
shall have been indemnified, to its reasonable satisfaction, for such liability by the Secured Parties that gave such notice, consent, direction or instruction) or (iii) is unduly prejudicial
to the holders of any First Tier Secured Obligations not joining in such notice, consent, direction or instruction. 

        (i)    Resignation; Successor Collateral Agent.    The Collateral Agent may resign at any time by notifying the
Secured Parties and QSC. Upon any such resignation, the Secured Parties shall have the right, in consultation with QSC, to appoint a successor Collateral Agent. If no successor shall have been so
appointed by the Secured Parties and shall have accepted such appointment within 30 days after the retiring Collateral Agent gives notice of its resignation, then the retiring Collateral Agent
may, on behalf of the Secured Parties, appoint a successor Collateral Agent which shall be either (i) a bank having (x) an office in New York, New York and (y) combined capital
and surplus of at least $400,000,000, or an Affiliate of any such bank or (ii) another bank that is reasonably acceptable to QSC (or an Affiliate of such bank). Upon acceptance of its
appointment as Collateral Agent hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Collateral Agent
hereunder, and the retiring Collateral Agent shall be discharged from its duties and obligations hereunder. The fees payable by QSC to a successor Collateral Agent shall be the same as those payable
by QSC to such Collateral Agent's predecessor unless otherwise agreed by QSC and such successor Collateral Agent. After the Collateral Agent's resignation hereunder, the provisions of this Section and
Section 15 shall continue in effect for the benefit of such retiring Collateral Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted
to be taken by any of them while the retiring Collateral Agent was acting as Collateral Agent. If no successor agent has accepted appointment as Collateral Agent by the date which is 30 days
following the retiring Collateral Agent's notice of resignation, the retiring Agent's resignation shall at its election nevertheless become effective and the Secured Parties shall perform all of the
duties of the Collateral Agent hereunder until such time, if any, as the Secured Parties appoint a 

S-21

 

successor
agent as provided above. In the event Bank of America, N.A. resigns as Collateral Agent but continues to be the Senior Collateral Agent, such resignation shall become effective in accordance
with the foregoing upon delivery to the successor Collateral Agent hereunder (or if no such successor has accepted such appointment, to the Secured Parties) of a written acknowledgment by Bank of
America, N.A., in its capacity as Senior Collateral Agent, of the following: (i) that, pursuant to Section 9-313 of the UCC, any Pledged Instruments or Pledged Certificated
Securities held by the Senior Collateral Agent are held for the benefit of the "Secured Parties" under and as defined in the Senior Security Agreement and the Secured Parties under this Agreement and
the holders of any Additional Senior Secured Obligations or Additional Pari Passu Secured Obligations which are secured by such Pledged Instruments or Pledged Certificated Securities pursuant to any
Secured Agreement other than this Agreement (but disclaiming any duty to such parties, as permitted by Section 9-313 of the UCC); (2) that upon satisfaction of the Senior
Release Conditions, (i) at the written request of all of the holders of any Additional Senior Secured Obligations (or their respective trustees or like representatives), which request shall
include instructions for delivery, the Senior Collateral Agent shall deliver all Pledged Instruments and Pledged Certificated Securities in its possession to the collateral agent or secured party
under any Secured Agreement granting Liens in such Pledged Instruments and/or Pledged Certificated Securities in favor of the holders of any Additional Senior Secured Obligations as specified in such
request, or (ii) if no Additional Senior Secured Obligations exist at such time, to the successor Collateral Agent under this Agreement (or if no such successor has accepted such appointment,
to one or more of the Secured Parties); (3) that following payment in full in cash of the "Secured Obligations" (as defined in the Senior Security Agreement) secured by the Collateral in
accordance with Section 21 of the Senior Security Agreement to the extent the same constitute "Senior Debt" under clauses (1), (2) or (6) of the definition thereof under the
Indenture (as in effect on the Effective Date)(which, for the avoidance of doubt, includes all expenses, liabilities, advances and fees owing pursuant to clauses "first", "second", "third" and
"fourth" of Sections 21(a), 21(b) and 21(c) of the Senior Security Agreement), the Senior Collateral Agent shall deliver any remaining Proceeds of the Collateral to the successor Collateral
Agent hereunder (or, if no such successor has accepted such appointment, to one or more of the Secured Parties) unless prohibited by law from doing so; and (4) that the Senior Collateral Agent
shall promptly notify the successor Collateral Agent hereunder (or, if no such successor has accepted such appointment, to one or more of the Secured Parties) in writing of the satisfaction of the
Senior Release Conditions. 

        Section 17.    Termination of Transaction Liens; Release of Collateral.    

        (a)   The
Transaction Liens granted by QSC to secure its obligations in respect of the QSC Notes shall terminate when the obligations in respect of such Notes are paid in full
in cash or otherwise pursuant to the Indenture, as applicable. 

        (b)   The
Transaction Liens granted by QSC to secure the Guaranty shall terminate when all obligations thereunder are paid in full in cash or are otherwise no longer required
pursuant to the Existing 2008 Notes Indentures as applicable. 

        (c)   The
Transaction Liens granted by QSC hereunder to secure its Additional Senior Secured Obligations shall terminate when all of the Additional Senior Secured Obligations
are paid in full or otherwise pursuant to the terms of the Secured Agreements with respect thereto; provided that, if at any time no Additional Senior
Secured Obligations are then designated as Secured Obligations under this Agreement pursuant to Section 18(a), QSC may terminate the Transaction Liens granted hereunder to secure Additional
Senior Secured Obligations by delivery of written notice of such termination to Collateral Agent. 

        (d)   The
Transaction Liens granted by QSC hereunder to secure its Additional Pari Passu Secured Obligations shall terminate when all of the Additional Pari Passu Secured
Obligations are paid in full or otherwise pursuant to the terms of the Secured Agreements with respect thereto; provided that, if at 

S-22

 

any
time no Additional Pari Passu Secured Obligations are then designated as Secured Obligations under this Agreement pursuant to Section 18(b), QSC may terminate the Transaction Liens granted
hereunder to secure Additional Pari Passu Secured Obligations by delivery of written notice of such termination to Collateral Agent. 

        (e)   Concurrently
with any sale, lease or other disposition of any Collateral permitted by the Secured Agreements evidencing any of the Secured Obligations, the Transaction
Liens on such Collateral securing such Secured Obligations shall terminate immediately without any action by the Collateral Agent. 

        (f)    At
any time before the Transaction Liens granted by QSC terminate, the Collateral Agent may, at the written request of QSC, release any Transaction Lien on any
Collateral or release any Collateral from a Transaction Lien with the prior written consent of the holders of a majority of the principal amount of the Secured Obligations of each Class secured by
such Transaction Lien (or such other number or percentage of such Class of holders as may be necessary under the circumstances under the applicable Secured Agreements governing such Secured
Obligations) or the trustee or like representative representing such holders. 

        (g)   Upon
any termination of a Transaction Lien or release of Collateral, the Collateral Agent will, at the expense of QSC, execute and deliver to QSC such documents as QSC
shall reasonably request to evidence the termination of such Transaction Lien or the release of such Collateral, as the case may be. 

        Section 18.    Additional Secured Obligations.    After the date hereof, QSC may from time to time, designate
any other obligation as: 

        (a)   an
Additional Senior Secured Obligation for purposes hereof (any such additional secured obligation, an "Additional Senior Secured
Obligation") by delivering to the Collateral Agent (with a copy to the Senior Collateral Agent): (A) a certificate signed by the chief financial officer or chief
accounting officer of QSC (i) identifying the obligation so designated and the aggregate principal or face amount thereof, stating that such obligation is designated as an Additional Senior
Secured Obligation for purposes hereof, (ii) stating whether such Additional Senior Secured Obligation is to be secured by the Transaction Liens granted for such purpose under this Agreement or
by Liens granted pursuant to a separate Secured Agreement, (iii) stating whether such Additional Senior Secured Obligations are secured by all or a portion of the Collateral and, if a portion,
which portion, (iv) specifying the name and address of the holder of such obligation or of a trustee, agent or similar representative designated to supply information with respect to such
Additional Senior Secured Obligation to the Collateral Agent as contemplated by Section 16(f); and (iv) representing that, (w) all of the designated Additional Senior Secured
Obligations constitute "Senior Debt" as defined in the Indenture, (x) the Liens granted to secure such Additional Senior Secured Obligations are "Permitted Collateral Liens" pursuant to
clause (1) of the definition thereof in the Indenture and are permitted under all other Secured Agreements; (y) it has delivered any required notice to the Senior Collateral Agent, the
QSC Notes Trustee and the Existing 2008 Notes Trustee of such obligations or Liens, and (z) until such time as the Senior Release Conditions are satisfied, (1) such obligation is
permitted under both the Revolver Credit Agreement and the Term Credit Agreement, and (2) the Lien securing such obligation is permitted by both the Revolver Credit Agreement and the Term
Credit Agreement, (B) until the Senior Release Conditions have been satisfied, to the extent such Additional Senior Secured Obligation is to be secured by Liens granted under Secured Agreements
other than this Agreement, evidence reasonably satisfactory to the Collateral Agent that QSC has obtained any required approval by the "Agent" under (and as defined in) the Revolver Credit Agreement
and the Term Credit Agreement of the terms of such Secured Agreements rendering the Liens granted therein junior and subordinate to the Liens granted by the Senior Security Agreement, and
(C) if such Additional Senior Secured Obligations are to be secured by the Transaction Liens granted for such purpose 

S-23

 

under
this Agreement, an Additional Secured Party Consent, executed by the holder of such obligation, and otherwise, a copy of any Secured Agreement granting a Lien on any of the Collateral in favor
of such designated Additional Senior Secured Obligations; provided that, no obligation of QSC shall be an Additional Senior Secured Obligation unless
(a) such obligation constitutes "Senior Debt" under the Indenture and is permitted by any other Secured Agreements, and, until the Senior Release Conditions are satisfied, both the Revolver
Credit Agreement and the Term Credit Agreement, (b) the Liens securing such obligation are "Permitted Collateral Liens" pursuant to the Indenture and are not prohibited by (i) any other
Secured Agreements or (ii) until the Senior Release Conditions are satisfied, the Revolver Credit Agreement or the Term Credit Agreement; and 

        (b)   an
Additional Pari Passu Secured Obligation for purposes hereof (any such additional secured obligation, an "Additional Pari Passu Secured
Obligation") by delivering to the Collateral Agent (with a copy to the Senior Collateral Agent): (A) a certificate signed by the chief financial officer or chief
accounting officer of QSC (i) identifying the obligation so designated and the aggregate principal or face amount thereof, stating that such obligation is designated as an Additional Pari Passu
Secured Obligation for purposes hereof, (ii) stating whether such Additional Pari Passu Secured Obligation is to be secured by the Transaction Liens granted for such purpose under this
Agreement or by Liens granted pursuant to a separate Secured Agreement, (iii) stating whether such Additional Pari Passu Secured Obligations are secured by all or a portion of the Collateral
and, if a portion, which portion,
(iv) specifying the name and address of the holder of such obligation or of a trustee, agent or similar representative designated to supply information with respect to such Additional Secured
Obligation to the Collateral Agent as contemplated by Section 16(f); and (v) representing that, (w) all designated Additional Pari Passu Secured Obligations constitute obligations
described in the definition of "Permitted Equal Liens" in the Indenture, (x) the Liens granted to secure all Additional Pari Passu Secured Obligations are "Permitted Equal Liens" under the
Indenture and are permitted under any other Secured Agreements; (y) it has delivered any required notice to the Senior Collateral Agent, the QSC Notes Trustee and the Existing 2008 Notes
Trustee of such obligations or Lien, and (z) until such time as the Senior Release Conditions are satisfied, (1) such obligation is permitted under both the Revolver Credit Agreement and
the Term Credit Agreement, and (2) the Lien securing such obligation is permitted by the Revolver Credit Agreement and the Term Credit Agreement, (B) until the Senior Release Conditions
have been satisfied, to the extent such Additional Pari Passu Secured Obligation is to be secured by Liens granted under Secured Agreements other than this Agreement, evidence reasonably satisfactory
to the Collateral Agent that QSC has obtained any required approval by the "Agent" under (and as defined in) the Revolver Credit Agreement and the Term Credit Agreement of the terms of such Secured
Agreements rendering the Liens granted therein junior and subordinate to the Liens granted by the Senior Security Agreement, and (C) if such Additional Pari Passu Secured Obligations are to be
secured by the Transaction Liens granted for such purpose under this Agreement, an Additional Secured Party Consent, executed by the holder of such obligation, and otherwise, a copy of any Secured
Agreement granting a Lien on any of the Collateral in favor of such designated Additional Pari Passu Secured Obligations; provided that, no obligation
of QSC shall be an Additional Pari Passu Secured Obligation unless (a) such obligation constitutes an obligation described in the definition of "Permitted Equal Liens" in the Indenture and is
permitted under any other Secured Agreements, and until the Senior Release Conditions are satisfied, both the Revolver Credit Agreement and the Term Credit Agreement, (b) the Lien securing such
obligation is a Permitted Equal Lien under the Indenture and is not prohibited under (i) any other Secured Agreements or (ii) until the Senior Release Conditions are satisfied, the
Revolver Credit Agreement or the Term Credit Agreement. 

        (c)   At
any time, QSC may terminate its ability to designate Additional Senior Secured Obligations and/or Additional Pari Passu Secured Obligations by delivery of written
notice thereof 

S-24

 

to
the Collateral Agent and Senior Collateral Agent (provided, that, such termination shall not affect any Additional Senior Secured Obligations or Additional Pari Passu Secured Obligations previously
designated by QSC). 

        Section 19.    Notices.    Each notice, request or other communication given to any party hereunder shall be in
writing (which term includes facsimile) and shall be effective (i) when delivered to such party at its address specified below, (ii) when sent to such party by facsimile, addressed to it
at its facsimile number specified below, and such party sends back an electronic confirmation of receipt or (iii) ten days after being sent to such party by certified or registered United
States mail, addressed to it at its address specified below, with first class or airmail postage prepaid: 

        (a)   in
the case of QSC: 

Qwest
Services Corporation

1801 California Street

Denver, CO 80202

Attention: Chief Financial Officer

Facsimile: (303) 296-4920 

with
a copy to: 

Qwest
Services Corporation

1801 California Street

Denver, CO 80202

Attention: General Counsel

Facsimile: (303) 296-5974 

        (b)   in
the case of the Collateral Agent or the Senior Collateral Agent: 

Bank
of America, N.A.

901 Main Street, 14th Floor

Dallas, TX 75202-3714

TX1-492-14-11

Attention: Mickey McLean

Facsimile: (214) 290-9508 

        (c)   in
the case of the QSC Notes Trustee: 

Bank
One Trust Company, N.A.

1 Bank One Plaza, Mail Code IL1-0823

Chicago, Illinois 60670-0823

Attention: Account Officer—Qwest Communications 

        (d)   in
the case of the Existing 2008 Notes Trustee: 

Deutsche
Bank Trust Company Americas

Corporate Trust and Agency Services

Mail Stop MS-NYC03-0914

280 Park Avenue

New York, New York 10017 

Any
party may change its address or facsimile number for purposes of this Section by giving notice of such change to the Collateral Agent and QSC in the manner specified above. 

        Section 20.    No Implied Waivers; Remedies Not Exclusive.    No failure by the Collateral Agent or Secured
Parties to exercise, and no delay in exercising and no course of dealing with respect to, any right or remedy under any Security Document shall operate as a waiver thereof; nor shall any single or 

S-25

 

partial
exercise by the Collateral Agent or Secured Parties of any right or remedy under any Secured Agreement preclude any other or further exercise thereof or the exercise of any other right or
remedy. The rights and remedies specified in the Secured Agreements are cumulative and are not exclusive of any other rights or remedies provided by law. 

        Section 21.    Successors and Assigns.    This Agreement is for the benefit of the Collateral Agent and the
Secured Parties. If all or any part of any Secured Party's interest in any Secured Obligation is assigned or otherwise transferred, in accordance with the terms of the applicable Secured Agreement,
the transferor's rights hereunder, to the extent applicable to the obligation so transferred, shall be automatically transferred with such obligation. This Agreement shall be binding on QSC and its
respective successors and assigns. 

        Section 22.    Amendments and Waivers.    Neither this Agreement nor any provision hereof may be waived,
amended or modified except pursuant to an agreement or agreements in writing entered into by the parties hereto; provided,  however, that, no such amendment,
 modification or waiver shall be binding as to any Class unless the holders of a majority of the principal amount of
Secured Obligations of such Class (or their trustee or like representative on their behalf) shall have consented to the same in writing; provided further that, until the Senior Release Conditions have
been satisfied, no amendment, modification or waiver of this Agreement, which in the reasonable judgment of the Senior Collateral Agent could adversely affect any "Lender" under (and as defined in)
the Senior Security Agreement, shall be effective without the prior written consent of the Senior Collateral Agent. 

        Section 23.    Choice of Law.    This Agreement shall be construed in accordance with and governed by the laws
of the State of New York, except as otherwise required by mandatory provisions of law and except to the extent that remedies provided by the laws of any jurisdiction other than the State of New York
are governed by the laws of such jurisdiction. 

        Section 24.    Waiver of Jury Trial.    EACH PARTY HERETO WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO ANY SECURITY DOCUMENT OR ANY TRANSACTION CONTEMPLATED THEREBY
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 

        Section 25.    Severability.    If any provision of any Security Document is invalid or unenforceable in any
jurisdiction, then, to the fullest extent permitted by law, (i) the other provisions of the Security Documents shall remain in full force and effect in such jurisdiction and shall be liberally
construed in favor of the Collateral Agent and the Secured Parties in order to carry out the intentions of the parties thereto as nearly as may be possible and (ii) the invalidity or
unenforceability of such provision in such jurisdiction shall not affect the validity or enforceability thereof in any other jurisdiction. 

S-26

 

        IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written. 

	 	 	QWEST SERVICES CORPORATION
	

 	
 	

 	

 	

 
	 	 	By:	/s/  YASH A. RANA      

	 	 	 	Title:	Vice President
	

 	
 	

 	

 	

 
	 	 	BANK OF AMERICA, N.A., as Collateral Agent
	

 	
 	

 	

 	

 
	 	 	By:	/s/  MICKEY MCLEAN      

	 	 	 	Title:	Assistant Vice President

S-27

  

 
 

Schedule 1    
    

 
 

NOTES OR OTHER INSTRUMENTS EVIDENCING INDEBTEDNESS OWING TO QSC
  (as of the Effective Date)    
    

Note
issued by Qwest Wireless, L.L.C. to QSC dated August 30, 2002 in the amount of $400,000,000 and due January 15, 2005. 

S-3-1

  

Exhibit A

to Security and Pledge Agreement  

 
 

Additional Secured Party Consent    
    

        The undersigned                        desires to become an
"Additional [Senior][Pari Passu]
Secured Party" under the Security and Pledge Agreement dated as of                        ,
200  (as heretofore amended and/or supplemented, the
"Security and Pledge Agreement") among Qwest Services Corporation and Bank of America, N.A., as Collateral Agent (the
"Collateral Agent"). 

        In
consideration of the foregoing, the undersigned hereby: 

	(i)
	acknowledges
that it has received a copy of each of the Security and Pledge Agreement and the Indenture;

	(ii)
	irrevocably
appoints and authorizes the Collateral Agent to take such action as agent on its behalf and to exercise such powers under the Security and Pledge Agreement
as are delegated to the Collateral Agent by the terms thereof, together with all such powers as are reasonably incidental thereto; and

	(iii)
	accepts
and acknowledges the terms of the Security and Pledge Agreement and agrees to be a Silent Collateral Leinholder thereunder, with all the rights and obligations
of a Silent Collateral Leinholder thereunder and bound by all the provisions thereof as fully as if it had been a Silent Collateral Leinholder on the effective date of the Security and Pledge
Agreement. 

        The
name and address of the undersigned (or its trustee, agent or similar representative) for purposes of Section 19 of the Security and
Pledge Agreement are as follows: 

        [name and address of new Additional Secured Party or its representative].

        Terms
defined in the Security and Pledge Agreement (or whose definitions are incorporated by reference in Section 1 of the Security and Pledge Agreement) and not otherwise defined
herein have, as used herein, the respective meanings provided for therein. 

C-1

 

        IN
WITNESS WHEREOF, the undersigned has caused this Additional Secured Party Consent to be duly executed by its authorized officer as of this            day of 20    .

[NAME
OF ADDITIONAL SECURED PARTY] 

	

By:	

    
	

 
	 	Name:	 	 
	 	Title:	 	 

C-2

QuickLinks

Exhibit 4.2

SECURITY AND PLEDGE AGREEMENT

TABLE OF CONTENTS

SECURITY AND PLEDGE AGREEMENT

Schedule 1

NOTES OR OTHER INSTRUMENTS EVIDENCING INDEBTEDNESS OWING TO QSC (as of the Effective Date)

Additional Secured Party Consent

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