Document:

EXHIBIT 4.9.6

 

 

HERTZ VEHICLE FINANCING
LLC,

as Issuer

and

BNY MIDWEST TRUST COMPANY,

as Trustee and Securities Intermediary

SECOND AMENDED AND
RESTATED SERIES 2004-1 SUPPLEMENT

dated as of August 1,
2006

 

to

SECOND AMENDED AND
RESTATED BASE INDENTURE

dated as of August 1,
2006

 

$100,000,000
Series 2004-1 Floating Rate Rental Car Asset Backed Notes,
Class A-1

$165,000,000 Series 2004-1 2.38% Rental Car Asset Backed Notes,
Class A-2

$165,000,000 Series 2004-1 2.85% Rental Car Asset Backed Notes,
Class A-3

$170,000,000 Series 2004-1 3.23% Rental Car Asset Backed Notes,
Class A-4

 

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I

  
	
   

  
	
  Definitions

  
	
   

  
	
  ARTICLE II

  
	
   

  
	
  Series 2004-1
  Allocations

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
   

  	
  Series 2004-1 Series Accounts

  	
   

  	
  41

  
	
  SECTION 2.02.

  	
   

  	
  Allocations with Respect to the Series 2004-1
  Notes

  	
   

  	
  43

  
	
  SECTION 2.03.

  	
   

  	
  Application of Interest Collections

  	
   

  	
  47

  
	
  SECTION 2.04.

  	
   

  	
  Payment of Note Interest

  	
   

  	
  53

  
	
  SECTION 2.05.

  	
   

  	
  Payment of Note Principal

  	
   

  	
  53

  
	
  SECTION 2.06.

  	
   

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

  	
   

  	
  62

  
	
  SECTION 2.07.

  	
   

  	
  Reserve Account

  	
   

  	
  63

  
	
  SECTION 2.08.

  	
   

  	
  Series 2004-1 Letters of Credit and
  Series 2004-1 Cash Collateral Account

  	
   

  	
  64

  
	
  SECTION 2.09.

  	
   

  	
  Series 2004-1 Distribution Account

  	
   

  	
  72

  
	
  SECTION 2.10.

  	
   

  	
  Trustee as Securities Intermediary

  	
   

  	
  73

  
	
  SECTION 2.11.

  	
   

  	
  Series 2004-1 Interest Rate Hedges

  	
   

  	
  75

  
	
  SECTION 2.12.

  	
   

  	
  Series 2004-1 Demand Note Constitutes
  Additional Collateral for Series 2004-1 Notes

  	
   

  	
  76

  
	
  SECTION 2.13.

  	
   

  	
  Reimbursement Obligation

  	
   

  	
  81

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
   

  
	
  Amortization
  Events

  
	
   

  
	
  ARTICLE IV

  
	
   

  
	
  Right to Waive
  Purchase Restrictions

  
	
   

  
	
  ARTICLE V

  
	
   

  
	
  Form of Series
  2004-1 Notes

  
							

 

 

	
  SECTION 5.01.

  	
   

  	
  Initial Issuance of Series 2004-1
  Investor Notes

  	
   

  	
  87

  
	
  SECTION 5.02.

  	
   

  	
  Restricted Global Notes

  	
   

  	
  88

  
	
  SECTION 5.03.

  	
   

  	
  Regulation S Global Notes and Unrestricted
  Global Notes

  	
   

  	
  88

  
	
  SECTION 5.04.

  	
   

  	
  Definitive Notes

  	
   

  	
  88

  
	
  SECTION 5.05.

  	
   

  	
  Transfer Restrictions

  	
   

  	
  88

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  
	
   

  
	
  General

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
   

  	
  Optional Redemption of Series 2004-1
  Notes

  	
   

  	
  93

  
	
  SECTION 6.02.

  	
   

  	
  Information

  	
   

  	
  94

  
	
  SECTION 6.03.

  	
   

  	
  Exhibits

  	
   

  	
  96

  
	
  SECTION 6.04.

  	
   

  	
  Ratification of Base Indenture

  	
   

  	
  97

  
	
  SECTION 6.05.

  	
   

  	
  Notice to Insurer Rating Agencies and Ford

  	
   

  	
  97

  
	
  SECTION 6.06.

  	
   

  	
  Insurer Deemed Series 2004-1 Noteholder
  and Secured Party

  	
   

  	
  97

  
	
  SECTION 6.07.

  	
   

  	
  Third Party Beneficiary

  	
   

  	
  98

  
	
  SECTION 6.08.

  	
   

  	
  Prior Notice by Trustee to Insurer

  	
   

  	
  98

  
	
  SECTION 6.09.

  	
   

  	
  Subrogation

  	
   

  	
  98

  
	
  SECTION 6.10.

  	
   

  	
  Counterparts

  	
   

  	
  99

  
	
  SECTION 6.11.

  	
   

  	
  Governing Law

  	
   

  	
  99

  
	
  SECTION 6.12.

  	
   

  	
  Amendments

  	
   

  	
  99

  
	
  SECTION 6.13.

  	
   

  	
  Termination of Series Supplement

  	
   

  	
  99

  
	
  SECTION 6.14.

  	
   

  	
  Discharge of Indenture

  	
   

  	
  99

  
	
  SECTION 6.15.

  	
   

  	
  Effect of Payment by Insurer

  	
   

  	
  100

  
	
  SECTION 6.16.

  	
   

  	
  Ford Covenants

  	
   

  	
  100

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A-1-1:

  	
   

  	
  Form of Restricted Global Class A-1 Note

  	 

	
  Exhibit A-1-2:

  	
   

  	
  Form of Regulation S Global Class A-1
  Note

  	 

	
  Exhibit A-1-3:

  	
   

  	
  Form of Unrestricted Global Class A-1
  Note

  	 

	
  Exhibit A-2-1:

  	
   

  	
  Form of Restricted Global Class A-2 Note

  	 

	
  Exhibit A-2-2:

  	
   

  	
  Form of Regulation S Global Class A-2
  Note

  	 

	
  Exhibit A-2-3:

  	
   

  	
  Form of Unrestricted Global Class A-2
  Note

  	 

	
  Exhibit A-3-1:

  	
   

  	
  Form of Restricted Global Class A-3 Note

  	 

	
  Exhibit A-3-2:

  	
   

  	
  Form of Regulation S Global Class A-3
  Note

  	 

	
  Exhibit A-3-3:

  	
   

  	
  Form of Unrestricted Global Class A-3
  Note

  	 

	
  Exhibit A-4-1:

  	
   

  	
  Form of Restricted Global Class A-4 Note

  	 

	
  Exhibit A-4-2:

  	
   

  	
  Form of Regulation S Global Class A-4
  Note

  	 

	
  Exhibit A-4-3:

  	
   

  	
  Form of Unrestricted Global Class A-4
  Note

  	 

	
  Exhibit B-1-1:

  	
   

  	
  Form of Series 2004-1 Letter of Credit

  	 

	
  Exhibit B-1-2:

  	
   

  	
  Form of Series 2004-1 Ford Letter of Credit

  	 

	
  Exhibit C:

  	
   

  	
  Form of Lease Payment Deficit Notice

  	 

						

 

 2
 

 

	
  Exhibit D-1-1:

  	
   

  	
  Form of Reduction Notice

  
	
  Exhibit D-1-2:

  	
   

  	
  Form of Reduction Notice

  
	
  Exhibit D-2-1:

  	
   

  	
  Form of Termination Notice

  
	
  Exhibit D-2-2:

  	
   

  	
  Form of Termination Notice

  
	
  Exhibit E:

  	
   

  	
  Form of Consent

  
	
  Exhibit F-1:

  	
   

  	
  Form of Transfer Certificate

  
	
  Exhibit F-2:

  	
   

  	
  Form of Transfer Certificate

  
	
  Exhibit F-3:

  	
   

  	
  Form of Transfer Certificate

  
	
  Exhibit G:

  	
   

  	
  Form of Monthly Noteholders’ Statement

  
	
  Exhibit H:

  	
   

  	
  Form of Series 2004-1 Demand Note

  

 

 3

SECOND AMENDED AND RESTATED SERIES 2004-1 SUPPLEMENT dated as of
August 1, 2006 (this “Series Supplement”),
between HERTZ VEHICLE FINANCING LLC, a special purpose limited liability
company established under the laws of Delaware (“HVF”),
and BNY MIDWEST TRUST COMPANY, an Illinois trust company, as trustee (together
with its successors in trust thereunder as provided in the Base Indenture
referred to below, the “Trustee”), and as
securities intermediary, to the Second Amended and Restated Base Indenture,
dated as of August 1, 2006, between HVF and the Trustee (as amended, modified
or supplemented from time to time, exclusive of Series Supplements, the “Base
Indenture”).

WITNESSETH:

WHEREAS, HVF and the Trustee entered into the
Series 2004-1 Supplement dated as of March 31, 2004, as amended and
restated pursuant to the Amended and Restated Series 2004-1 Supplement dated as
of December 21, 2005 (the “Prior Series Supplement”);

WHEREAS, HVF and the Trustee desire to amend and
restate the Prior Series Supplement in its entirety as herein set forth; and

WHEREAS, Sections 2.02 and 12.01 of the Base Indenture
provide, among other things, that HVF 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:

There is hereby created a Series of Notes to be issued
pursuant to the Base Indenture and this Series Supplement and such Series of
Notes shall be designated as Rental Car Asset Backed Notes, Series 2004-1.  The Series 2004-1 Notes shall be
issued in four classes:  the first of
which shall be designated as the Series 2004-1 Floating Rate Rental
Car Asset Backed Notes, Class A-1, and referred to herein as the
Class A-1 Notes, the second of which shall be designated as the
Series 2004-1 2.38% Rental Car Asset Backed Notes, Class A-2,
and referred to herein as the Class A-2 Notes, the third of which
shall be designated as the Series 2004-1 2.85% Rental Car Asset
Backed Notes, Class A-3, and referred to herein as the Class A-3
Notes and the last of which shall be designated as the Series 2004-1
3.23% Rental Car Asset Backed Notes, Class A-4, and referred to
herein as the Class A-4 Notes. 
The Class A-1 Notes, the

Class A-2
Notes, the Class A-3 Notes and the Class A-4 Notes are
referred to herein collectively as the “Series 2004-1
Notes”. 
The Series 2004-1 Notes shall be issued in minimum
denominations of $200,000 and integral multiples of $1,000 in excess thereof.

The net proceeds from the sale of the Series 2004-1
Notes shall be deposited in the Series 2004-1 Excess Collection
Account and used to make payments in reduction of the Principal Amount of other
Series of Notes or paid to HVF and used to acquire Eligible Vehicles from HGI
pursuant to the Purchase Agreement or for other purposes permitted under the
Related Documents.

ARTICLE I

Definitions

All capitalized terms not otherwise defined herein
shall have the meanings assigned thereto in the Definitions List attached to
the Base Indenture as Schedule I thereto, as amended, modified, restated
or supplemented from time to time in accordance with the terms of the Base
Indenture.  All Article, Section or
Subsection references herein shall refer to Articles, Sections or Subsections
of the Base Indenture, except as otherwise provided herein.  Unless otherwise stated herein, as the
context otherwise requires or if such term is otherwise defined in the Base
Indenture, each capitalized term used or defined herein shall relate only to
the Series 2004-1 Notes and not to any other Series of Notes issued
by HVF.  All references herein to the “Series 2004-1
Supplement” shall mean the Base Indenture, as
supplemented hereby.

The following words and phrases shall have the following
meanings with respect to the Series 2004-1 Notes and the definitions
of such terms are applicable to the singular as well as the plural form of such
terms and to the masculine as well as the feminine and neuter genders of such
terms:

“Adjusted
Aggregate Asset Amount” means, as of any day, the sum of (a) the
Aggregate Asset Amount and (b) the sum of (1) the amount of cash and
Permitted Investments on deposit in the Series 2004-1 Collection Account
and available for reduction of the Series 2004-1 Principal Amount and
(2) the amount of cash and Permitted Investments on deposit in the
Series 2004-1 Excess Collection Account, in each case on such day.

“Aggregate
BMW/Lexus/Mercedes/Audi Amount” means as of any date of determination, the sum
of the BMW Amount, the Lexus Amount, the Mercedes Amount and the Audi Amount,
in each case, as of such date.

“Applicable Procedures”
has the meaning specified in Section 5.01 of this Series Supplement.

 2
 

“Audi Amount” means, as of any date of
determination, an amount equal to the Manufacturer Non-Eligible Vehicle Amount
and the Manufacturer Eligible Program Vehicle Amount, in each case with respect
to Audi as of such date.

“BMW Amount” means, as of any date of
determination, an amount equal to the Manufacturer Non-Eligible Vehicle Amount
and the Manufacturer Eligible Program Vehicle Amount, in each case with respect
to BMW as of such date.

“BNY MTC” means BNY Midwest Trust Company, an
Illinois trust company, and its successors and assigns.

“Calculation Agent” means BNY MTC, in its
capacity as calculation agent with respect to the Class A-1 Note
Rate.

“Certificate of Credit Demand” means a
certificate in the form of Annex A to a Series 2004-1 Letter of
Credit.

“Certificate of Preference Payment Demand”
means a certificate in the form of Annex C to the Series 2004-1
Letter of Credit.

“Certificate of Termination Demand” means a
certificate in the form of Annex D to a Series 2004-1 Letter of
Credit.

“Certificate of Unpaid Demand Note Demand”
means a certificate in the form of Annex B to the Series 2004-1
Letter of Credit.

“Class” means a class of the Series 2004-1
Notes, which may be the Class A-1 Notes, the Class A-2
Notes, the Class A-3 Notes or the Class A-4 Notes.

“Class A-1 Carryover Controlled
Amortization Amount” means, with respect to the Class A-1 Notes
for 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 allocated to pay the Class A-1 Controlled Distribution
Amount for the previous Related Month was less than the Class A-1
Controlled Distribution Amount for the previous Related Month; provided,
however, that for the first 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) for any Related Month other than the last Related
Month during the Three-Year Notes Controlled Amortization Period,
$16,666,666.66 and (ii) for the last Related Month during the Three-Year
Notes Controlled Amortization Period, $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

 3
 

equal to the sum of the
Class A-1 Controlled Amortization Amount for such Related Month and
any Class A-1 Carryover Controlled Amortization Amount for such
Related Month.

“Class A-1 Deficiency Amount” has
the meaning specified in Section 2.03(g) of this Series Supplement.

“Class A-1 Initial Principal Amount”
means the aggregate initial principal amount of the Class A-1 Notes,
which is $100,000,000.

“Class A-1 Monthly Interest” means,
with respect to any Series 2004-1 Interest Period, an amount equal
to the product of (i) the Class A-1 Note Rate for such
Series 2004-1 Interest Period, (ii) the Class A-1
Principal Amount on the first day of such Series 2004-1 Interest
Period, after giving effect to any principal payments made on such date, or, in
the case of the initial Series 2004-1 Interest Period, the
Class A-1 Initial Principal Amount and (iii) a fraction, the
numerator of which is the number of days in such Series 2004-1
Interest Period and the denominator of which is 360.

“Class A-1 Note Rate” means,
(i) with respect to the initial Series 2004-1 Interest Period,
1.18% per annum and (ii) with respect to each Series 2004-1
Interest Period thereafter, a rate per annum equal to One-Month LIBOR for such
Series 2004-1 Interest Period plus 0.09% per annum.

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

“Class A-1 Notes” means any one of
the Series 2004-1 Floating Rate Rental Car Asset Backed Notes,
Class A-1, executed by HVF 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 2.13 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 Principal Amount minus (b) the amount of
principal payments made to Class A-1 Noteholders on or prior to such
date.

“Class A-1 Principal 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 Class A-1 Noteholders on or prior to such
date with the proceeds of a demand on the Insurance Policy and (b) the
amount of any principal payments made to Class A-1 Noteholders,
including any principal payments made to the Insurer, that have been rescinded
or otherwise returned by the Class A-1 Noteholders or the Insurer
for any reason.

 4
 

“Class A-2 Carryover Controlled
Amortization Amount” means, with respect to the Class A-2 Notes
for 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 allocated to pay the Class A-2 Controlled Distribution
Amount 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, for any Related Month, $27,500,000.

“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 for such Related Month and
any Class A-2 Carryover Controlled Amortization Amount for such
Related Month.

“Class A-2 Deficiency Amount” has
the meaning specified in Section 2.03(g) of this Series Supplement.

“Class A-2 Initial Principal Amount”
means the aggregate initial principal amount of the Class A-2 Notes,
which is $165,000,000.

“Class A-2 Monthly Interest” means,
(a) with respect to the initial Series 2004-1 Interest Period,
an amount equal to the product of (i) the Class A-2 Note Rate,
(ii) the Class A-2 Initial Principal Amount and
(iii) 25/360 and (b) with respect to any other Series 2004-1
Interest Period, an amount equal to the product of (i) one-twelfth of the
Class A-2 Note Rate and (ii) the Class A-2 Principal
Amount on the first day of such Series 2004-1 Interest Period, after
giving effect to any principal payments made on such date.

“Class A-2 Note Rate” means 2.38%
per annum.

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

“Class A-2 Notes” means any one of
the Series 2004-1 Fixed Rate Rental Car Asset Backed Notes,
Class A-2, executed by HVF 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 2.13 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 Principal Amount minus

 5
 

(b) the amount of
principal payments made to Class A-2 Noteholders on or prior to such
date.

“Class A-2 Principal 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 Class A-2 Noteholders on or prior to such
date with the proceeds of a demand on the Insurance Policy and (b) the
amount of any principal payments made to Class A-2 Noteholders,
including any principal payments made to the Insurer, that have been rescinded
or otherwise returned by the Class A-2 Noteholders or the Insurer
for any reason.

“Class A-3 Carryover Controlled
Amortization Amount” means, with respect to the Class A-3 Notes
for any Related Month during the Class A-3 Controlled Amortization
Period, the amount, if any, by which the Monthly Total Principal Allocation 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, for any Related Month, $27,500,000.

“Class A-3 Controlled Amortization
Period” means the period commencing at the close of business on October 31,
2007 (or, if such day is not a Business Day, the Business Day immediately
preceding such day) and continuing to the earlier of (i) the commencement
of the Series 2004-1 Rapid Amortization Period and (ii) the
date on which the Class A-3 Notes are fully paid.

“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 for such Related Month and any Class A-3
Carryover Controlled Amortization Amount for such Related Month.

“Class A-3 Deficiency Amount” has
the meaning specified in Section 2.03(g) of this Series Supplement.

“Class A-3 Expected Final Payment Date”
means the May 2008 Payment Date.

“Class A-3 Initial Principal Amount”
means the aggregate initial principal amount of the Class A-3 Notes,
which is $165,000,000.

“Class A-3 Legal Final Payment Date”
means the May 2009 Payment Date.

 6
 

“Class A-3 Monthly Interest” means,
(a) with respect to the initial Series 2004-1 Interest Period,
an amount equal to the product of (i) the Class A-3 Note Rate,
(ii) the Class A-3 Initial Principal Amount and
(iii) 25/360 and (b) with respect to any other Series 2004-1
Interest Period, an amount equal to the product of (i) one-twelfth of the
Class A-3 Note Rate and (ii) the Class A-3 Principal
Amount on the first day of such Series 2004-1 Interest Period, after
giving effect to any principal payments made on such date.

“Class A-3 Note Rate” means 2.85%
per annum.

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

“Class A-3 Notes” means any one of
the Series 2004-1 Fixed Rate Rental Car Asset Backed Notes,
Class A-3, executed by HVF 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 2.13 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 Principal Amount minus (b) the amount of
principal payments made to Class A-3 Noteholders on or prior to such
date.

“Class A-3 Principal 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 Class A-3 Noteholders on or prior to such
date with the proceeds of a demand on the Insurance Policy and (b) the
amount of any principal payments made to Class A-3 Noteholders,
including any principal payments made to the Insurer, that have been rescinded
or otherwise returned by the Class A-3 Noteholders or the Insurer
for any reason.

“Class A-4 Carryover Controlled
Amortization Amount” means, with respect to the Class A-4 Notes
for any Related Month during the Class A-4 Controlled Amortization
Period, the amount, if any, by which the Monthly Total Principal Allocation for
the previous Related Month was less than the Class A-4 Controlled
Distribution Amount for the previous Related Month; provided, however, that for the
first Related Month in the Class A-4 Controlled Amortization Period,
the Class A-4 Carryover Controlled Amortization Amount shall be
zero.

“Class A-4 Controlled Amortization
Amount” means (i) for any Related Month other than the last Related
Month during the Class A-4 Controlled Amortization Period,
$28,333,333.33 and (ii) for the last Related Month during the Class A-4
Controlled Amortization Period, $28,333,333.35.

 7
 

“Class A-4 Controlled Amortization
Period” means the period commencing at the close of business on October 31,
2008 (or, if such day is not a Business Day, the Business Day immediately
preceding such day) and continuing to the earlier of (i) the commencement
of the Series 2004-1 Rapid Amortization Period and (ii) the
date on which the Class A-4 Notes are fully paid and the Insurer has
been paid all Insurer Fees and all other Insurer Reimbursement Amounts then
due.

“Class A-4 Controlled Distribution
Amount” means, with respect to any Related Month during the Class A-4
Controlled Amortization Period, an amount equal to the sum of the Class A-4
Controlled Amortization Amount for such Related Month and any Class A-4
Carryover Controlled Amortization Amount for such Related Month.

“Class A-4 Deficiency Amount” has
the meaning specified in Section 2.03(g) of this Series Supplement.

“Class A-4 Expected Final Payment Date”
means the May 2009 Payment Date.

“Class A-4 Initial Principal Amount”
means the aggregate initial principal amount of the Class A-4 Notes,
which is $170,000,000.

“Class A-4 Legal Final Payment Date”
means the May 2010 Payment Date.

“Class A-4 Monthly Interest” means,
(a) with respect to the initial Series 2004-1 Interest Period,
an amount equal to the product of (i) the Class A-4 Note Rate,
(ii) the Class A-4 Initial Principal Amount and
(iii) 25/360 and (b) with respect to any other Series 2004-1
Interest Period, an amount equal to the product of (i) one-twelfth of the
Class A-4 Note Rate and (ii) the Class A-4 Principal
Amount on the first day of such Series 2004-1 Interest Period, after
giving effect to any principal payments made on such date.

“Class A-4 Note Rate” means 3.23%
per annum.

“Class A-4 Noteholder”
means the Person in whose name a Class A-4 Note is registered in the
Note Register.

“Class A-4 Notes” means any one of
the Series 2004-1 Fixed Rate Rental Car Asset Backed Notes,
Class A-4, executed by HVF and authenticated by or on behalf of the
Trustee, substantially in the form of Exhibit A-4-1, Exhibit A-4-2 or Exhibit
A-4-3.  Definitive Class A-4
Notes shall have such insertions and deletions as are necessary to give effect
to the provisions of Section 2.13 of the Base Indenture.

“Class A-4 Outstanding Principal Amount”
means, when used with respect to any date, an amount equal to (a) the
Class A-4 Initial Principal Amount minus

 8
 

(b) the amount of
principal payments made to Class A-4 Noteholders on or prior to such
date.

“Class A-4 Principal Amount” means
when used with respect to any date, an amount equal to the Class A-4
Outstanding Principal Amount plus the sum of (a) the amount of any
principal payments made to Class A-4 Noteholders on or prior to such
date with the proceeds of a demand on the Insurance Policy and (b) the
amount of any principal payments made to Class A-4 Noteholders,
including any principal payments made to the Insurer, that have been rescinded
or otherwise returned by the Class A-4 Noteholders or the Insurer
for any reason.

“Consent” is defined in Article IV.

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

“Deficiency Amount” means a Class A-1
Deficiency Amount, a Class A-2 Deficiency Amount, a Class A-3
Deficiency Amount or a Class A-4 Deficiency Amount.

“Demand Notice” has the meaning specified in
Section 2.12(d) of this Series Supplement.

“Designated Amounts” is defined in
Article IV.

“Disbursement” shall mean any LOC Credit
Disbursement, any LOC Preference Payment Disbursement, any LOC Termination
Disbursement or any LOC Unpaid Demand Note Disbursement under the
Series 2004-1 Letters of Credit or any combination thereof, as the
context may require.

“Downgrade Event” has the meaning specified in
Section 2.08(c) of this Series Supplement.

“Eligible Interest Rate Hedge Provider” means a
counterparty to a Series 2004-1 Interest Rate Hedge who is a bank or
other financial institution, which has (i) either (a) a short-term senior
and unsecured debt rating of at least “A-1” from Standard & Poor’s
or (b) a long-term senior and unsecured debt rating of at least “A+” from
Standard & Poor’s and (ii) a short-term senior and unsecured debt
rating of “P-1” from Moody’s and (a) on the date the
Series 2004-1 Interest Rate Hedge is executed, a long-term senior and
unsecured debt rating of at least “Aa3” from Moody’s and (b) on any
other date, a long-term senior and unsecured debt rating of at least “A1”
from Moody’s.

“Eligible Program Vehicle Amount” means, as of
any date of determination, an amount equal to the sum, rounded to the nearest
$100,000, of the following amounts to the extent that such amounts are included
in the definition of “Aggregate Asset Amount” for such
date:  (i) the Net Book Value of all
Eligible Program

 9
 

Vehicles that are
Eligible Vehicles as of such date and not turned in to and accepted by the
Manufacturer thereof pursuant to its Manufacturer Program, not delivered and
accepted for Auction pursuant to a Manufacturer Program or not otherwise sold
or deemed to be sold under the Related Documents, plus (ii) the aggregate
amount of Manufacturer Receivables (other than Excluded Payments) payable to
HVF or to the Intermediary pursuant to the Master Exchange Agreement, in each
case as of such date by Manufacturers which are Eligible Program Manufacturers
with respect to Vehicles that were Eligible Vehicles and Eligible Program
Vehicles when turned in to and accepted by such Manufacturers or delivered and
accepted for Auction, plus (iii) with respect to Eligible Vehicles that
were Eligible Program Vehicles that have been delivered and accepted for
Auction pursuant to a Manufacturer Program with a Manufacturer which is an
Eligible Program Manufacturer, all amounts receivable (other than amounts
specified in clause (ii) above) from any person or entity in connection
with the Auction of such Eligible Vehicles as of such date, plus (iv) with
respect to Eligible Vehicles that were Eligible Program Vehicles that have been
turned in to and accepted by the Manufacturer thereof, delivered and accepted
for Auction, otherwise sold or become a Casualty, any accrued and unpaid
Casualty Payments or Termination Payments with respect to such Eligible
Vehicles under the HVF Lease, plus (v) with respect to Eligible Vehicles
that were Eligible Program Vehicles that have been turned in to and accepted by
the Manufacturer thereof, delivered for Auction or otherwise sold, any accrued
and unpaid Monthly Base Rent with respect to such Eligible Vehicles under the
HVF Lease (net of amounts set forth in clauses (ii), (iii) and (iv) above),
plus (vi) with respect to Eligible Vehicles that were Eligible Program
Vehicles sold by HVF to a third party pursuant to Section 2.05(a) of the
HVF Lease, any non-return incentives payable to HVF under a Manufacturer
Program by an Eligible Program Manufacturer in respect of the sale of such
Vehicles outside of the related Manufacturer Program as of such date, plus
(vii) if such date is during the period from and including a Determination
Date to but excluding the next Payment Date, accrued and unpaid Monthly Base
Rent payable on the next Payment Date with respect to all Eligible Vehicles
that are Eligible Program Vehicles as of such date and that have not been
turned in to and accepted by the Manufacturer thereof pursuant to its
Manufacturer Program, not been delivered and accepted for Auction pursuant to a
Manufacturer Program and not otherwise been sold or deemed to be sold under the
Related Documents.

“Eligible Program Vehicle Percentage” means, as
of any date of determination, a fraction, expressed as a percentage, the
numerator of which is the excess, if any, of the Eligible Program Vehicle
Amount over the Non-Investment Grade Eligible Program Manufacturer Amount as of
such date and the denominator of which is the excess of (A) the Aggregate
Asset Amount over (B) the amount of cash and Permitted Investments on
deposit in the Collection Account and the HVF Exchange Account, in each case as
of such date.

“Eligible Series
Enhancement Account” means any Series Account the amount on deposit in
which is included in the Enhancement Amount with respect to the

 10
 

related Series of Notes and the Series Supplement with respect to which
provides that, if there are any Ford Reimbursement Obligations outstanding,
amounts on deposit therein may only be applied to pay principal of, or interest
on, the related Series of Notes or to pay such Ford Reimbursement Obligations.

“Excluded Redesignated Vehicle” means each
Vehicle manufactured by a Manufacturer with respect to which an Event of
Bankruptcy has occurred that becomes a Redesignated Vehicle prior to the
Inclusion Date for such Vehicle, as of and from the date such Vehicle becomes a
Redesignated Vehicle to and until the Inclusion Date for such Vehicle.

“Financial Assets” has the meaning specified in
Section 2.10(b)(i) of this Series Supplement.

“Fixed Rate Payment” means, for any Payment
Date, an amount equal to the amount payable by HVF as the “Fixed Amount”
under any Series 2004-1 Interest Rate Hedge on such Payment Date
after netting the amounts payable to HVF as the “Floating Amount” under
such Series 2004-1 Interest Rate Hedge on such Payment Date.

“Fleet Equity Amount” means, on any date of
determination, the amount, if any, by which the sum of (a) the Aggregate Asset
Amount on such date and (b) the amount of cash and Permitted Investments on
deposit in the (i) Series 2004-1 Reserve Account, (ii) the Series 2004-1
Non-Ford Cash Collateral Account, (iii) the Series 2004-1 Excess Collection
Account after the required
application of such funds
in accordance with the priorities set forth in clauses (i) through (iv)
of Section 2.2(f) of this Series Supplement as of such date, (vi) the
Series 2004-1 Collection Account and available for reduction of the Series
2004-1 Principal Amount as of such date, (vii) any Series-Specific Excess
Collection Account (other than the Series 2004-1 Excess Collection Account)
after the required application
of such funds in accordance
with the priorities set forth in the provisions
of the related Series Supplement governing
the distribution of amounts on deposit in such Series-Specific Excess
Collection Account, other than amounts that
are permitted to be released to HVF, (viii) any Series-Specific
Collection Account (other than the Series 2004-1 Collection Account) and available for reduction of the Principal
Amount with respect to the related Series as of such date and (ix) any
other Eligible Series Enhancement Account exceeds the aggregate Principal
Amount of each Outstanding Series of Notes on such date.

“Fleet Equity Condition” means, as of any date of determination, a
condition that is satisfied if the Fleet Equity Amount as of such date equals
or exceeds the Required Minimum Fleet Equity Amount as of such date.

“Ford Letter of Credit” means an irrevocable
letter of credit issued for the account of Ford or an affiliate thereof in
favor of the Trustee for the benefit of a Series of Notes or a class of a
Series of Notes.

 11
 

“Ford LOC Disbursement” means any LOC Credit
Disbursement under a Series 2004-1 Ford Letter of Credit.

“Ford LOC Exposure Amount” means, on any date
of determination, the sum of (a) the aggregate amount available to be drawn
under all outstanding Ford Letters of Credit on such date, (b) the stated
amount of Ford Letters of Credit that Ford is committed to provide to HVF on such
date, after giving effect to the issuance of the Ford Letters of Credit
referenced in clause (a), (c) the aggregate amount of cash and Permitted
Investments on deposit in any Series 2004-1 Series Account (including the
Series 2004-1 Ford Cash Collateral Account) funded by an amount drawn under a
Ford Letter of Credit on such date and (d) (without double counting any amount
included in the preceding clause (c)) any outstanding Ford Reimbursement
Obligations on such date.

“Ford Reimbursement Obligations” means any and
all obligations of HVF set forth in Section 2.13 of this Series Supplement and
any other payment obligation of HVF in respect of a Ford Letter of Credit set
forth in any other Series Supplement; provided, however, that no
Ford Reimbursement Obligation in respect of a disbursement made under a Ford
Letter of Credit shall arise until such time as Ford has reimbursed the
provider of such Ford Letter of Credit for such disbursement.

“Hyundai Amount” means, as of any date of
determination, an amount equal to the Manufacturer Non-Eligible Vehicle Amount
and the Manufacturer Eligible Program Vehicle Amount, in each case with respect
to Hyundai as of such date.

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

“Indenture Carrying Charges” means, as of any
day, any fees or other costs, fees and expenses and indemnity amounts, if any,
payable by HVF to the Trustee, the Administrator, the Intermediary under the
Master Exchange Agreement or the Nominee under the Indenture or the Related
Documents plus any other operating expenses of HVF then payable by HVF.

“Insurance Agreement” means the Insurance
Agreement, dated as March 31, 2004, among the Insurer, the Trustee and
HVF, which shall constitute an “Enhancement Agreement” with respect the
Series 2004-1 Notes for all purposes under the Indenture.

“Insurance Policy” means the Note Guaranty
Insurance Policy No. 43613, dated March 31, 2004, issued by the Insurer.

 12
 

“Insured Principal Deficit Amount” means, with
respect to any Payment Date, the excess, if any, of (a) the
Series 2004-1 Outstanding Principal Amount on such Payment Date
(after giving effect to the distribution of the Monthly Total Principal
Allocation for the Related Month) over (b) the sum on such Payment Date of
(i) the Series 2004-1 Asset Amount, (ii) the
Series 2004-1 Available Reserve Account Amount,  and (iii) the Series 2004-1
Letter of Credit Amount.

“Insurer” means MBIA Insurance Corporation, a
New York corporation.  The Insurer shall
constitute an “Enhancement Provider” with respect to the Series 2004-1
Notes for all purposes under the Indenture and the other Related Documents.

“Insurer Default” means (i) any failure by
the Insurer to pay a demand for payment made in accordance with the
requirements of the Insurance Policy and such failure shall not have been cured
or (ii) the occurrence of an Insurer Insolvency Event with respect to the
Insurer.

“Insurer Insolvency Event” shall be deemed to
have occurred with respect to the Insurer if:

(a) a rehabilitation or liquidation proceeding
shall be commenced against the Insurer, without the consent of the Insurer,
seeking the rehabilitation or liquidation of the Insurer, the appointment of a
trustee, receiver, custodian, liquidator, assignee, sequestrator or the like
for the Insurer or all or any substantial part of its assets, or any similar
action with respect to the Insurer under any law relating to rehabilitation,
liquidation, insolvency, reorganization, winding up or composition or adjustment
of debts, and such proceeding shall continue undismissed, or unstayed and in
effect, for a period of 60 consecutive days; or

(b) the Insurer shall commence a voluntary
proceeding under any applicable rehabilitation, insolvency, reorganization,
debt arrangement, dissolution or other similar law now or hereafter in effect,
or shall consent to the appointment of or taking possession by a receiver,
liquidator, assignee, trustee, custodian, sequestrator (or other similar
official) for the Insurer or for any substantial part of its property, or shall
make any general assignment for the benefit of creditors; or

(c) the board of directors of the Insurer shall
vote to implement any of the actions set forth in clause (b) above.

“Insurer Fee” has the meaning set forth in the
Insurance Agreement.

“Insurer 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 Insurer pursuant to the Insurance Agreement
in respect of unreimbursed draws under the Insurance Policy, including interest
thereon determined in accordance with the

 13
 

Insurance Agreement, and
(ii) an amount equal to the aggregate of any other amounts due as of such
date to the Insurer pursuant to the Insurance Agreement (other than the Insurer
Fee).

“Interest Rate Hedge Provider” means HVF’s
counterparty under a Series 2004-1 Interest Rate Hedge.

“Jaguar Amount” means, as of any date of
determination, an amount equal to the Manufacturer Non-Eligible Vehicle Amount
and the Manufacturer Eligible Program Vehicle Amount, in each case with respect
to Jaguar as of such date.

“Kia Amount” means, as of any date of
determination, an amount equal to the Manufacturer Non-Eligible Vehicle Amount
and the Manufacturer Eligible Program Vehicle Amount, in each case with respect
to Kia as of such date.

“Land Rover Amount” means, as of any date of
determination, an amount equal to the sum of the Land Rover Program Amount and
the Land Rover Non-Program Amount as of such date.

“Land Rover Non-Program Amount”  means, as of any date of determination, an
amount equal to the Manufacturer Non-Eligible Vehicle Amount with respect to
Land Rover as of such date.

“Land Rover Program Amount:  means, as of any date of determination, an
amount equal to the Manufacturer Eligible Program Vehicle Amount with respect
to Land Rover as of such date.

“Lease Payment Deficit Notice” has the meaning
specified in Section 2.03(c) of this Series Supplement.

“Legal Final Payment Date” means the Three-Year
Notes Legal Final Payment Date, the Class A-3 Legal Final Payment
Date or the Class A-4 Legal Final Payment Date.

“Lexus Amount” means, as of any date of
determination, an amount equal to the Manufacturer Non-Eligible Vehicle Amount
and the Manufacturer Eligible Program Vehicle Amount, in each case with respect
to Lexus as of such date.

“LIBOR Determination Date” means, with respect
to any Series 2004-1 Interest Period, the second London Business Day
preceding the first day of such Series 2004-1 Interest Period.

“LOC Credit Disbursement” means an amount drawn
under a Series 2004-1 Letter of Credit pursuant to a Certificate of
Credit Demand.

 14
 

“LOC Preference Payment Disbursement” means an
amount drawn under a Series 2004-1 Letter of Credit pursuant to a
Certificate of Preference Payment Demand.

“LOC Termination Disbursement” means an amount
drawn under a Series 2004-1 Letter of Credit pursuant to a
Certificate of Termination Demand.

“LOC Unpaid Demand Note Disbursement” means an
amount drawn under a Series 2004-1 Letter of Credit pursuant to a
Certificate of Unpaid Demand Note Demand.

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

“Manufacturer Eligible Program Vehicle Amount”
means, as of any date of determination, with respect to any Manufacturer, an
amount equal to the sum, rounded to the nearest $100,000, of the following
amounts to the extent that such amounts are included in the definition of “Aggregate
Asset Amount” for such date: 
(i) the Net Book Value of all Eligible Program Vehicles that are
Eligible Vehicles as of such date that were manufactured by such Manufacturer
or an Affiliate thereof and not turned in to and accepted by such Manufacturer
pursuant to its Manufacturer Program, not delivered and accepted for Auction
pursuant to its Manufacturer Program or not otherwise sold or deemed to be sold
under the Related Documents, plus (ii) the aggregate amount of
Manufacturer Receivables (other than Excluded Payments) payable to HVF or to
the Intermediary pursuant to the Master Exchange Agreement, in each case as of
such date by such Manufacturer with respect to Vehicles that were Eligible
Vehicles and Eligible Program Vehicles when turned in to and accepted by such
Manufacturer or delivered and accepted for Auction, plus (iii) with
respect to Eligible Vehicles that were Eligible Program Vehicles that have been
delivered and accepted for Auction pursuant to a Manufacturer Program with such
Manufacturer, all amounts receivable (other than amounts specified in
clause (ii) above) from any person or entity in connection with the
Auction of such Eligible Vehicles as of such date, plus (iv) with respect
to Eligible Vehicles that were Eligible Program Vehicles manufactured by such
Manufacturer or an Affiliate thereof that have been turned in to and accepted
by such Manufacturer, delivered and accepted for Auction, otherwise sold or
become a Casualty, any accrued and unpaid Casualty Payments or Termination
Payments with respect to such Eligible Vehicles as of such date under the HVF
Lease, plus (v) with respect to Eligible Vehicles that were Eligible
Program Vehicles manufactured by such Manufacturer or an Affiliate thereof that
have been turned in to and accepted by such Manufacturer, delivered and
accepted for Auction or otherwise sold, any accrued and unpaid Monthly Base
Rent with respect to such Eligible Vehicles under the HVF Lease (net of amounts
set forth in clauses (ii), (iii), and (iv) above) plus (vi) with
respect to Eligible Vehicles that were Eligible Program Vehicles sold by HVF to
a third party pursuant to Section 2.05(a) of the HVF Lease, any non-return
incentives payable to HVF under a Manufacturer Program by

 15
 

such Manufacturer in
respect of the sale of such Vehicles outside of the related Manufacturer
Program as of such date, plus (vii) if such date is during the period from
and including a Determination Date to but excluding the next Payment Date,
accrued and unpaid Monthly Base Rent payable on the next Payment Date with
respect to all Eligible Vehicles that are Eligible Program Vehicles as of such
date that were manufactured by such Manufacturer or an Affiliate thereof and
that have not been turned in to and accepted by such Manufacturer pursuant to
its Manufacturer Program, not been delivered and accepted for Auction pursuant
to its Manufacturer Program and not otherwise been sold or deemed to be sold
under the Related Documents.  For the
purposes of this definition, an Affiliate of a Manufacturer shall not include
any Person who is included as a Manufacturer hereunder.

“Manufacturer Non-Eligible Vehicle Amount” means,
as of any date of determination, with respect to any Manufacturer, an amount
equal to the sum, rounded to the nearest $100,000, of the following amounts to
the extent that such amounts are included in the definition of “Aggregate
Asset Amount” for such date: 
(i) the Net Book Value of all Non-Eligible Program Vehicles or
Non-Program Vehicles that are Eligible Vehicles as of such date that were
manufactured by such Manufacturer or an Affiliate thereof and not turned in to
and accepted by such Manufacturer thereof pursuant to its Manufacturer Program,
not delivered and accepted for Auction pursuant to its Manufacturer Program or
not otherwise sold or deemed to be sold under the Related Documents, plus
(ii) the aggregate amount of Manufacturer Receivables (other than Excluded
Payments) payable to HVF or to the Intermediary pursuant to the Master Exchange
Agreement, in each case as of such date by such Manufacturer with respect to
Vehicles that were Eligible Vehicles and Non-Eligible Program Vehicles when
turned in to and accepted by such Manufacturer or delivered and accepted for
Auction, plus (iii) with respect to Eligible Vehicles that were
Non-Eligible Program Vehicles that have been delivered and accepted for Auction
pursuant to a Manufacturer Program with such Manufacturer, all amounts
receivable (other than amounts specified in clause (ii) above) from any
Person in connection with the Auction of such Eligible Vehicles as of such
date, plus (iv) with respect to Eligible Vehicles that were Non-Eligible
Program Vehicles or Non-Program Vehicles manufactured by such Manufacturer or
an Affiliate thereof that have been turned in to and accepted by such
Manufacturer, delivered and accepted for Auction, otherwise sold or become a
Casualty, any accrued and unpaid Casualty Payments or Termination Payments with
respect to such Eligible Vehicles as of such date under the HVF Lease, plus
(v) with respect to Eligible Vehicles that were Non-Eligible Program
Vehicles or Non-Program Vehicles manufactured by such Manufacturer or an
Affiliate thereof that have been turned in to and accepted by such Manufacturer,
delivered and accepted for Auction or otherwise sold, any accrued and unpaid
Monthly Base Rent with respect to such Eligible Vehicles under the HVF Lease
(net of amounts set forth in clauses (ii), (iii) and (iv) above), plus
(vi) if such date is during the period from and including a Determination
Date to but excluding the next Payment Date, accrued and unpaid Monthly Base
Rent payable on the next Payment Date with respect to all Eligible Vehicles as
of such date that are Non-Eligible Program Vehicles or Non-Program

 16
 

Vehicles manufactured by
such Manufacturer or an Affiliate thereof and that have not been turned in to
and accepted by such Manufacturer thereof pursuant to its Manufacturer Program,
not been delivered and accepted for Auction pursuant to a Manufacturer Program
and not otherwise been sold or deemed to be sold under the Related
Documents.  For the purposes of this
definition, an Affiliate of a Manufacturer shall not include any Person who is
included as a Manufacturer hereunder.

“Market Value Average” means, as of any day on
or after the third Determination Date, the percentage equivalent (not to exceed
100%) of a fraction, the numerator of which is the average of the Non-Program
Fleet Market Value as of such preceding Determination Date and the two Determination
Dates precedent thereto and the denominator of which is the average of the
aggregate Net Book Value of all Non-Program Vehicles (excluding any Excluded
Redesignated Vehicles) as of the preceding Determination Date and the two
Determination Dates precedent thereto.

“Mazda Amount” means, as of any date of
determination, an amount equal to the sum of the Mazda Program Amount and the
Mazda Non-Program Amount as of such date.

“Mazda Non-Program Amount” means, as of any
date of determination, an amount equal to the Manufacturer Non-Eligible Vehicle
Amount with respect to Mazda as of such date.

“Mazda Program Amount” means, as of any date of
determination, an amount equal to the Manufacturer Eligible Program Vehicle
Amount with respect to Mazda as of such date.

“Mercedes Amount” means, as of any date of
determination, an amount equal to the Manufacturer Non-Eligible Vehicle Amount
and the Manufacturer Eligible Program Vehicle Amount, in each case with respect
to Mercedes as of such date.

“Mitsubishi Amount” means, as of any date of
determination, an amount equal to the Manufacturer Non-Eligible Vehicle Amount
and the Manufacturer Eligible Program Vehicle Amount, in each case with respect
to Mitsubishi as of such date.

“Monthly Total Principal Allocation” means for
any Related Month the sum of all Series 2004-1 Principal Allocations
with respect to such Related Month.

“New York UCC” has the meaning specified in
Section 2.10(b)(i) of this Series Supplement.

“Non-Eligible Manufacturer Amount” means, as of
any date of determination, an amount equal to the sum, rounded to the nearest
$100,000, of the following amounts to the extent that such amounts are included
in the definition of “Aggregate Asset Amount” for such date:  (i) the Net Book Value of all HVF Vehicles

 17
 

that are Eligible
Vehicles as of such date that were manufactured by Manufacturers other than
Eligible Manufacturers and not turned in to and accepted by the Manufacturer
thereof pursuant to its Manufacturer Program, not delivered and accepted for Auction
pursuant to its Manufacturer Program or not otherwise sold or deemed to be sold
under the Related Documents, plus (ii) the aggregate amount of
Manufacturer Receivables (other than Excluded Payments) payable to HVF or to
the Intermediary pursuant to the Master Exchange Agreement, in each case as of
such date by Manufacturers other than Eligible Manufacturers with respect to
Vehicles that were Eligible Vehicles when turned in to and accepted by such
Manufacturers or delivered and accepted for Auction, plus (iii) with
respect to Eligible Vehicles that have been delivered and accepted for Auction
pursuant to a Manufacturer Program with a Manufacturer other than an Eligible
Manufacturer, all amounts receivable (other than amounts specified in clause (ii)
above) from any Person in connection with the Auction of such Eligible Vehicles
as of such date, plus (iv) with respect to Eligible Vehicles that were
manufactured by Manufacturers other than Eligible Manufacturers that have been
turned in to and accepted by the Manufacturer thereof, delivered and accepted
for Auction, otherwise sold or become a Casualty, any accrued and unpaid
Casualty Payments or Termination Payments with respect to such Eligible
Vehicles as of such date under the HVF Lease, plus (v) with respect to
Eligible Vehicles that were manufactured by Manufacturers other than Eligible
Manufacturers that have been turned in to and accepted by the Manufacturer
thereof, delivered and accepted for Auction or otherwise sold, any accrued and
unpaid Monthly Base Rent with respect to such Eligible Vehicles under the HVF
Lease (net of amounts set forth in clauses (ii), (iii) and (iv) above),
plus (vi) if such date is during the period from and including a
Determination Date to but excluding the next Payment Date, accrued and unpaid
Monthly Base Rent payable on the next Payment Date with respect to all Eligible
Vehicles as of such date that were manufactured by Manufacturers other than
Eligible Manufacturers and that have not been turned in to and accepted by the
Manufacturer thereof pursuant to its Manufacturer Program, not been delivered
and accepted for Auction pursuant to its Manufacturer Program and not otherwise
been sold or deemed to be sold under the Related Documents.

“Non-Eligible Vehicle Amount” means, as of any
date of determination, an amount equal to the sum, rounded to the nearest
$100,000, of the following amounts to the extent that such amounts are included
in the definition of “Aggregate Asset Amount” for such date:  (i) the Net Book Value of all
Non-Eligible Program Vehicles and Non-Program Vehicles that are Eligible
Vehicles as of such date and not turned in to and accepted by the Manufacturer
thereof pursuant to its Manufacturer Program, not delivered and accepted for
Auction pursuant to its Manufacturer Program or not otherwise sold or deemed to
be sold under the Related Documents, plus (ii) the aggregate amount of
Manufacturer Receivables (other than Excluded Payments) payable to HVF or to
the Intermediary pursuant to the Master Exchange Agreement, in each case as of
such date by Manufacturers with respect to Vehicles that were Eligible Vehicles
and Non-Eligible Program Vehicles when turned in to and accepted by such
Manufacturers or delivered and accepted for Auction, plus (iii) with respect
to Eligible Vehicles that were

 18
 

Non-Eligible Program
Vehicles that have been delivered and accepted for Auction pursuant to a
Manufacturer Program with a Manufacturer, all amounts receivable (other than
amounts specified in clause (ii) above) from any Person in connection with
the Auction of such Eligible Vehicles as of such date, plus (iv) with
respect to Eligible Vehicles that were Non-Eligible Program Vehicles or
Non-Program Vehicles that have been turned in to and accepted by the
Manufacturer thereof, delivered and accepted for Auction, otherwise sold or
become a Casualty, any accrued and unpaid Casualty Payments or Termination
Payments with respect to such Eligible Vehicles as of such date under the HVF
Lease, plus (v) with respect to Eligible Vehicles that were Non-Eligible
Program Vehicles or Non-Program Vehicles that have been turned in to and
accepted by the Manufacturer thereof, delivered and accepted for Auction or
otherwise sold, any accrued and unpaid Monthly Base Rent with respect to such
Eligible Vehicles under the HVF Lease (net of amounts set forth in clauses
(ii), (iii) and (iv) above), plus (vi) if such date is during the
period from and including a Determination Date to but excluding the next
Payment Date, accrued and unpaid Monthly Base Rent payable on the next Payment
Date with respect to all Eligible Vehicles as of such date that are
Non-Eligible Program Vehicles or Non-Program Vehicles and that have not been
turned in to and accepted by the Manufacturer thereof pursuant to its Manufacturer
Program, not been delivered and accepted for Auction pursuant to a Manufacturer
Program and not otherwise been sold or deemed to be sold under the Related
Documents.

“Non-Eligible Vehicle Percentage” means, as of
any date of determination, a fraction, expressed as a percentage, the numerator
of which is the sum of (i) the Non-Eligible Vehicle Amount as of such date plus
(ii) the Non-Investment Grade Eligible Program Manufacturer Amount as of such
date and the denominator of which is the excess of (A) the Aggregate Asset
Amount over (B) the amount of cash and Permitted Investments on deposit in the
Collection Account and the HVF Exchange Account, in each case as of such date.

“Non-Investment Grade Eligible Program Manufacturer”
means, as of any date of determination, each Eligible Program Manufacturer of
the type described in clause (b) of the definition thereof who as of such date
does not have a long-term unsecured debt rating of at least “BBB-” from
Standard & Poor’s and at least “Baa3” from Moody’s; provided that
upon the withdrawal of the rating of a Manufacturer by a Rating Agency or upon
the downgrade of a Manufacturer by a Rating Agency to a rating that would
require inclusion of such Manufacturer in this definition, for purposes of this
definition and each instance in which this definition is used in this Series
Supplement, such Manufacturer shall be deemed to be rated “BBB-” and/or “Baa3”,
as applicable, by the Rating Agency which downgraded such Manufacturer for a
period of 30 days following the earlier of (i) the date on which any of the
Administrator, HVF or the Servicer obtains actual knowledge of such downgrade
and (ii) the date on which the Trustee or the Insurer notifies the
Administrator of such downgrade.

 19

“Non-Investment Grade Eligible Program Manufacturer
Amount” means, as of any date of determination, the sum for all
Non-Investment Grade Eligible Program Manufacturers of an amount, with respect
to each Non-Investment Grade Eligible Program Manufacturer, equal to the sum,
rounded to the nearest $100,000, of the following amounts to the extent that
such amounts are included in the definition of “Aggregate Asset Amount”
for such date:  (i) the Net Book
Value of all Eligible Program Vehicles that are Eligible Vehicles as of such
date that were manufactured by such Non-Investment Grade Eligible Program
Manufacturer or an Affiliate thereof and not turned in to and accepted by such
Non-Investment Grade Eligible Program Manufacturer pursuant to its Manufacturer
Program, not delivered and accepted for Auction pursuant to its Manufacturer
Program or not otherwise sold or deemed to be sold under the Related Documents,
plus (ii) the aggregate amount of Manufacturer Receivables (other than
Excluded Payments) payable to HVF or to the Intermediary pursuant to the Master
Exchange Agreement, in each case as of such date by such Non-Investment Grade
Eligible Program Manufacturer with respect to Vehicles that were Eligible
Vehicles and Eligible Program Vehicles when turned in to and accepted by such
Non-Investment Grade Eligible Program Manufacturer or delivered and accepted
for Auction, plus (iii) with respect to Eligible Vehicles that were
Eligible Program Vehicles that have been delivered and accepted for Auction
pursuant to a Manufacturer Program with such Non-Investment Grade Eligible
Program Manufacturer, all amounts receivable (other than amounts specified in
clause (ii) above) from any person or entity in connection with the
Auction of such Eligible Vehicles as of such date, plus (iv) with respect
to Eligible Vehicles that were Eligible Program Vehicles manufactured by such
Non-Investment Grade Eligible Program Manufacturer or an Affiliate thereof that
have been turned in to and accepted by such Non-Investment Grade Eligible
Program Manufacturer, delivered and accepted for Auction, otherwise sold or
become a Casualty, any accrued and unpaid Casualty Payments or Termination
Payments with respect to such Eligible Vehicles as of such date under the HVF
Lease, plus (v) with respect to Eligible Vehicles that were Eligible
Program Vehicles manufactured by such Non-Investment Grade Eligible Program
Manufacturer or an Affiliate thereof that have been turned in to and accepted
by such Non-Investment Grade Eligible Program Manufacturer, delivered and
accepted for Auction or otherwise sold, any accrued and unpaid Monthly Base
Rent with respect to such Eligible Vehicles under the HVF Lease (net of amounts
set forth in clauses (ii), (iii), and (iv) above) plus (vi) with
respect to Eligible Vehicles that were Eligible Program Vehicles sold by HVF to
a third party pursuant to Section 2.05(a) of the HVF Lease, any non-return
incentives payable to HVF under a Manufacturer Program by such Non-Investment
Grade Eligible Program Manufacturer in respect of the sale of such Vehicles
outside of the related Manufacturer Program as of such date, plus (vii) if
such date is during the period from and including a Determination Date to but
excluding the next Payment Date, accrued and unpaid Monthly Base Rent payable
on the next Payment Date with respect to all Eligible Vehicles that are
Eligible Program Vehicles as of such date that were manufactured by such
Non-Investment Grade Eligible Program Manufacturer or an Affiliate thereof and
that have not been turned in to and accepted by such Non-Investment Grade
Eligible Program Manufacturer pursuant to its Manufacturer Program,

 20
 

not been delivered and
accepted for Auction pursuant to its Manufacturer Program and not otherwise
been sold or deemed to be sold under the Related Documents.  For the purposes of this definition, an
Affiliate of a Manufacturer shall not include any Person who is included as a
Manufacturer hereunder.

“Non-Program Fleet Market Value” means, with
respect to all Non-Program Vehicles (excluding any Excluded Redesignated
Vehicles) as of any date of determination, the sum of the respective
Third-Party Market Values of each such Non-Program Vehicle.

“Non-Program Vehicle Measurement Month Average”
means, with respect to any Measurement Month, the lesser of (a) the
percentage equivalent of a fraction, the numerator of which is the aggregate
amounts of Disposition Proceeds paid or payable in respect of all Non-Program
Vehicles that are sold to third parties, at auction or otherwise (excluding salvage
sales), during such Measurement Month and the two Measurement Months preceding
such Measurement Month and the denominator of which is the aggregate Net Book
Values of such Non-Program Vehicles on the dates of their respective sales and
(b) 100%.

“Notice of Reduction” means a notice in the
form of Annex E to a Series 2004-1 Letter of Credit.

“One-Month LIBOR” means, for each
Series 2004-1 Interest Period, the rate per annum determined on the
related LIBOR Determination Date by the Calculation Agent to be the rate for
Dollar deposits having a maturity equal to one month, that appears on Telerate
Page 3750 at approximately 11:00 a.m., London time, on such LIBOR Determination
Date; provided, however, that if such rate does not appear on Telerate Page 3750,
One-Month LIBOR will mean, for such 2004-1 Interest Period, the rate per
annum equal to the arithmetic mean (rounded to the nearest
one-one-hundred-thousandth of one percent) of the rates quoted by the Reference
Banks to the Calculation Agent as the rates at which deposits in Dollars are
offered by the Reference Banks at approximately 11:00 a.m., London time, on the
LIBOR Determination Date to prime banks in the London interbank market for a
period equal to one month; provided further, that if fewer than two quotations
are provided as requested by the Reference Banks, “One-Month LIBOR” for
such Series 2004-1 Interest Period will mean the arithmetic mean
(rounded to the nearest one-one-hundred-thousandth of one percent) of the rates
quoted by major banks in New York, New York selected by the Calculation Agent,
at approximately 10:00 a.m., New York City time, on the first day of such
Series 2004-1 Interest Period for loans in Dollars to leading
European banks for a period equal to one month; provided, finally that if
no such quotes are provided, “One-Month LIBOR” for such Series 2004-1
Interest Period will mean One-Month LIBOR as in effect with respect to the
preceding Series 2004-1 Interest Period.

 21
 

“Outstanding” means with respect to the
Series 2004-1 Notes, all Series 2004-1 Notes theretofore
authenticated and delivered under the Indenture, except (a) Series 2004-1
Notes theretofore cancelled or delivered to the Registrar for cancellation,
(b) Series 2004-1 Notes which have not been presented for
payment but funds for the payment of which are on deposit in the
Series 2004-1 Distribution Account and are available for payment of
such Series 2004-1 Notes, and Series 2004-1 Notes which
are considered paid pursuant to Section 8.01 of the Base Indenture, or
(c) Series 2004-1 Notes in exchange for or in lieu of other
Series 2004-1 Notes which have been authenticated and delivered
pursuant to the Indenture unless proof satisfactory to the Trustee is presented
that any such Series 2004-1 Notes are held by a purchaser for value.

“Past Due Rent Payment” has the meaning
specified in Section 2.02(d) of this Series Supplement.

“Preference Amount” means any amount previously
paid by Hertz pursuant to the Series 2004-1 Demand Note and
distributed to the Series 2004-1 Noteholders in respect of amounts
owing under the Series 2004-1 Notes that is recoverable or that has been
recovered as a voidable preference by the trustee in a bankruptcy proceeding of
Hertz pursuant to the Bankruptcy Code in accordance with a final nonappealable
order of a court having competent jurisdiction.

“Principal Deficit Amount” means, on any date
of determination, the excess, if any, of (a) the Series 2004-1
Principal Amount on such date (after giving effect to the distribution of the
Monthly Total Principal Allocation for the Related Month and any other amounts
to be paid to the Series 2004-1 Noteholders described in
Section 2.05(a) of this Series Supplement if such date is a Payment Date)
over (b) the Series 2004-1 Asset Amount on such date; provided,
however, the Principal Deficit Amount on any date that is prior to the
Class A-4 Legal Final Maturity Date occurring during the period
commencing on and including the date of the filing by Hertz of a petition for
relief under Chapter 11 of the Bankruptcy Code to but excluding the date on
which Hertz shall have resumed making all payments of Monthly Variable Rent
required to be made under the HVF Lease, shall mean the excess, if any, of (x)
the Series 2004-1 Principal Amount on such date (after giving effect
to the distribution of Monthly Total Principal Allocation for the Related Month
and any other amounts to be paid to the Series 2004-1 Noteholders
described in Section 2.05(a) of this Series Supplement if such date is a
Payment Date) over (y) the sum of (1) the Series 2004-1
Asset Amount on such date and (2) the lesser of (a) the
Series 2004-1 Liquidity Amount on such date and (b) the
Series 2004-1 Required Liquidity Amount on such date.

“Pro Rata Share” means, (a) with respect to any
Series 2004-1 Non-Ford Letter of Credit Provider, as of any date,
the fraction (expressed as a percentage) obtained by dividing (A) the
available amount under such Series 2004-1 Non-Ford Letter of Credit
Provider’s Series 2004-1 Non-Ford Letter of Credit as of such date
by (B) an amount

 22
 

equal to the aggregate
available amount under all Series 2004-1 Non-Ford Letters of Credit
as of such date and (b) with respect to any Series 2004-1 Ford
Letter of Credit Provider, as of any date, the fraction (expressed as a
percentage) obtained by dividing (A) the available amount under such
Series 2004-1 Ford Letter of Credit Provider’s Series 2004-1
Ford Letter of Credit as of such date by (B) an amount equal to the
aggregate available amount under all Series 2004-1 Ford Letters of
Credit as of such date; provided that only for purposes of calculating
the Pro Rata Share with respect to any Series 2004-1 Letter of
Credit Provider as of any date, if such Series 2004-1 Letter of
Credit Provider has not complied with its obligation to pay the Trustee the amount
of any draw under its Series 2004-1 Letter of Credit made prior to
such date, the available amount under such Series 2004-1 Letter of
Credit Provider’s Series 2004-1 Letter of Credit as of such date
shall be treated as reduced (for calculation purposes only) by the amount of
such unpaid demand and shall not be reinstated for purposes of such calculation
unless and until the date as of which such Series 2004-1 Letter of
Credit Provider has paid such amount to the Trustee and been reimbursed by the
Lessee for such amount (provided that the foregoing calculation shall not in
any manner reduce the Series 2004-1 Letter of Credit Provider’s actual
liability in respect of any failure to pay any demand under its
Series 2004-1 Letter of Credit).

“QIB” has the meaning specified in
Section 5.01 of this Series Supplement.

“Rating Agencies” means, with respect to the
Series 2004-1 Notes, Standard & Poor’s and Moody’s, and any
other nationally recognized rating agency rating the Series 2004-1
Notes at the request of HVF.

“Redesignated Vehicle” means any Program
Vehicle manufactured by a Manufacturer with respect to which an Event of
Bankruptcy has occurred which has been redesignated as a Non-Program Vehicle
pursuant to Section 18(b) of the HVF Lease in accordance with Section 2.6
thereof.

“Record Date” means, with respect to any
Payment Date, the last day of the Related Month.

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

“Regulation S” means Regulation S promulgated
under the Securities Act.

“Regulation S Global Notes” has the
meaning specified in Section 5.03 of this Series Supplement.

“Required Minimum Fleet Equity Amount” means,
on any date of determination, an amount equal to four times the Ford LOC Exposure
Amount as of such date.

 23
 

“Required Noteholders” means with respect to
the Series 2004-1 Notes, subject to Section 6.06 of this Series
Supplement, Series 2004-1 Noteholders holding more than 50% of the
Series 2004-1 Principal Amount (excluding any Series 2004-1
Notes held by HVF or any Affiliate of HVF).

“Restricted Global Notes” has
the meaning specified in Section 5.02 of this Series Supplement.

“Restricted Notes” means the Restricted Global
Notes and all other Series 2004-1 Notes evidencing the obligations,
or any portion of the obligations, initially evidenced by the Restricted Global
Notes, other than certificates transferred or exchanged upon certification as
provided in Section 5.05(h)(iv) of this Series Supplement.

“Restricted Period” means the period
commencing on the Series 2004-1 Closing Date and ending on the 40th
day after the Series 2004-1 Closing Date.

“Rule 144A” means Rule 144A promulgated under
the Securities Act.

“Series 2004-1 Accrued Amounts”
means, on any date of determination, the sum of (i) accrued and unpaid
interest on the Series 2004-1 Notes as of such date, (ii) the
Insurer Fee, if any, accrued to such date and payable by HVF on the next
succeeding Payment Date, (iii) any other amounts due or accrued as of such
date and payable to the Insurer pursuant to the Insurance Agreement (other than
unreimbursed amounts drawn under the Insurance Policy to pay the principal of
the Series 2004-1 Notes) on or prior to the next succeeding Payment
Date and (iv) the product of (A) the Indenture Carrying Charges payable on
the next succeeding Payment Date times (B) the Series 2004-1
Percentage as of the Determination Date immediately preceding such Payment
Date.

“Series 2004-1 Accrued Interest Account”
has the meaning specified in Section 2.01(a) of this Series Supplement.

“Series 2004-1 Adjusted Monthly Interest”
means, (a) for the initial Payment Date, $1,065,812.49 and (b) for
any other Payment Date, the sum of (i) with respect to the
Series 2004-1 Interest Period ending on the day preceding such
Payment Date, the sum of (A) an amount equal to the product of (1) the
Class A-1 Note Rate for such Series 2004-1 Interest
Period, (2) the Class A-1 Outstanding Principal Amount on the first
day of such Series 2004-1 Interest Period, after giving effect to
any principal payments made on such date, and (3) a fraction, the numerator of
which is the number of days in such Series 2004-1 Interest Period
and the denominator of which is 360, (B) an amount equal to the product of (1)
one-twelfth of the Class A-2 Note Rate and (2) the Class A-2
Outstanding Principal Amount on the first day of such Series 2004-1
Interest Period, after giving effect to any principal payments made on such
date, (C) an amount equal to the product of (1) one-twelfth of the Class A-3
Note Rate and (2) the Class A-3 Outstanding Principal Amount on the
first day of such Series 2004-1 Interest Period, after

 24
 

giving effect to any
principal payments made on such date, and (D) an amount equal to the product of
(1) one-twelfth of the Class A-4 Note Rate and (2) the Class A-4
Outstanding Principal Amount on the first day of such Series 2004-1
Interest Period, after giving effect to any principal payments made on such
date, and (ii) an amount equal to the amount of any unpaid Deficiency
Amounts, as of the preceding Payment Date (together with any accrued interest
on such Deficiency Amounts at the applicable Series 2004-1 Note
Rate).

“Series 2004-1 Asset Amount” means,
as of any date of determination, the sum of (a) the product of
(i) the Series 2004-1 Required Asset Amount Percentage as of
such date and (ii) the Aggregate Asset Amount as of such date and
(b) the amounts on deposit in the Series 2004-1 Excess
Collection Account and the Series 2004-1 Collection Account as of
such date (after giving effect to any deposits thereto and withdrawals and
releases therefrom on such date).

“Series 2004-1 Available Cash Collateral Account
Amount” means, as of any date of determination, the sum of (a) the Series
2004-1 Available Ford Cash Collateral Account Amount and (b) the Series 2004-1
Available Non-Ford Cash Collateral Account Amount.

“Series 2004-1 Available Ford Cash Collateral
Account Amount” means, as of any date of determination, the amount on
deposit in the Series 2004-1 Ford Cash Collateral Account (after giving effect
to any deposits thereto and withdrawals and releases therefrom on such date).

“Series 2004-1 Available Non-Ford Cash Collateral
Account Amount” means, as of any date of determination, the amount on
deposit in the Series 2004-1 Non-Ford Cash Collateral Account (after giving
effect to any deposits thereto and withdrawals and releases therefrom on such
date).

“Series 2004-1 Available Reserve Account Amount”
means, as of any date of determination, the amount on deposit in the Series
2004-1 Reserve Account.

“Series 2004-1 Cash Collateral Account” means a
Series 2004-1 Ford Cash Collateral Account and/or a Series 2004-1 Non-Ford Cash
Collateral Account, as the context may require.

“Series 2004-1 Cash Collateral Account Surplus”
means, with respect to any Payment Date, the lesser of (a) the sum of (x) the
Series 2004-1 Available Ford Cash Collateral Account Amount and (y) the Series
2004-1 Available Non-Ford Cash Collateral Account Amount and (b) the lesser of
(i) the excess, if any, of the Series 2004-1 Enhancement Amount (after giving
effect to any withdrawal from the Series 2004-1 Reserve Account on such Payment
Date) over the Series 2004-1 Required Enhancement Amount on such Payment Date,
and (ii) the excess, if any, of the Series 2004-1 Liquidity Amount (after
giving effect to any withdrawals from the Series 2004-1 Reserve Account

 25
 

on such Payment Date)
over the Series 2004-1 Required Liquidity Amount on such Payment Date.

“Series 2004-1 Closing Date” means
March 31, 2004.

“Series 2004-1 Collateral” means the
Collateral, any Series 2004-1 Interest Rate Hedges, the 2004-1
Series Account Collateral, the Series 2004-1 Cash Collateral Account
Collateral, the Series 2004-1 Demand Note, the Series 2004-1
Distribution Account Collateral and the Series 2004-1 Reserve
Account Collateral.

“Series 2004-1 Collection Account”
has the meaning specified in Section 2.01(a) of this Series Supplement.

“Series 2004-1 Controlled Amortization
Period” means the Three-Year Notes Controlled Amortization Period, the Class A-3
Controlled Amortization Period or the Class A-4 Controlled
Amortization Period, as the context requires.

“Series 2004-1 Demand Note” means
each demand note made by Hertz, substantially in the form of Exhibit H to this
Series Supplement, as amended, modified or restated from time to time in
accordance with its terms and the terms of this Series Supplement.

“Series 2004-1 Demand Note Payment
Amount” means, as of any date of determination, the excess, if any, of
(a) the aggregate amount of all proceeds of demands made on the
Series 2004-1 Demand Note that were deposited into the
Series 2004-1 Distribution Account and paid to the Series 2004-1
Noteholders during the one year period ending on such date of determination
over (b) the amount of any Preference Amount relating to such proceeds that has
been repaid to the Issuer (or any payee of the Issuer) with the proceeds of any
LOC Preference Payment Disbursement (or any withdrawal from the
Series 2004-1 Cash Collateral Account); 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 Hertz shall have occurred on or before such date of
determination, the Series 2004-1 Demand Note Payment Amount shall
equal (i) on any date of determination until the conclusion or dismissal
of the proceedings giving rise to such Event of Bankruptcy without continuing
jurisdiction by the court in such proceedings (or on any earlier date upon
which the statute of limitations in respect of avoidance actions in such
proceedings has run or when such actions otherwise become unavailable to the
bankruptcy estate), the Series 2004-1 Demand Note Payment Amount as
if it were calculated as of the date of the occurrence of such Event of
Bankruptcy and (ii) on any date of determination thereafter, $0.

“Series 2004-1 Deposit Date” has the
meaning specified in Section 2.02 of this Series Supplement.

 26
 

“Series 2004-1 Designated Account”
has the meaning specified in Section 2.10(a) of this Series Supplement.

“Series 2004-1 Distribution Account”
has the meaning specified in Section 2.09(a) of this Series Supplement.

“Series 2004-1 Distribution Account
Collateral” has the meaning specified in Section 2.09(d) of this
Series Supplement.

“Series 2004-1 Eligible Letter of Credit
Provider” means a Person having, at the time of the issuance of the related
Series 2004-1 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.

“Series 2004-1 Enhancement” means
the Series 2004-1 Cash Collateral Account Collateral, the
Series 2004-1 Letters of Credit, the Series 2004-1
Overcollateralization Amount and the Series 2004-1 Reserve Account
Collateral.

“Series 2004-1 Enhancement Amount”
means, as of any date of determination, the sum of (i) the
Series 2004-1 Overcollateralization Amount as of such date,
(ii) the Series 2004-1 Letter of Credit Amount as of such date,
(iii) the Series 2004-1 Available Reserve Account Amount as of
such date (after giving effect to any deposits thereto and withdrawals and
releases therefrom on such date) and (iv) on any date on which no
Aggregate Asset Amount Deficiency exists, the amount on deposit in the
Series 2004-1 Excess Collection Account as of such date.

“Series 2004-1 Enhancement Deficiency”
means, on any day, the amount by which the Series 2004-1 Enhancement
Amount is less than the Series 2004-1 Required Enhancement Amount.

“Series 2004-1 Excess Collection Account”
has the meaning specified in Section 2.01(a) of this Series Supplement.

“Series 2004-1 Ford Cash Collateral Account”
has the meaning specified in Section 2.08(g)(I) of this Series
Supplement.

“Series 2004-1 Ford Cash Collateral Account
Collateral” has the meaning specified in Section 2.08(a)(I) of this
Series Supplement.

“Series 2004-1 Ford Cash Collateral Percentage”
means, as of any date of determination, the percentage equivalent of a
fraction, the numerator of which is the Series 2004-1 Available Ford Cash
Collateral Account Amount as of such date and the

 27
 

denominator of which is
the Series 2004-1 Ford Letter of Credit Liquidity Amount as of such date.

“Series 2004-1 Ford Letter of Credit” means an
irrevocable letter of credit, substantially in the form of Exhibit B-1-2
to this Series Supplement and otherwise in form and substance satisfactory to
the Insurer, issued for the account of Ford or an affiliate thereof by a Series
2004-1 Eligible Ford Letter of Credit Provider in favor of the Trustee for the
benefit of the Series 2004-1 Noteholders; provided, however, that
the Insurer agrees that any Series 2004-1 Letter of Credit that is in the form
and substance of the Series 2004-1 Letter of Credit delivered to the Trustee on
the date hereof is in form and substance satisfactory to the Insurer.

“Series 2004-1 Ford 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 2004-1
Ford Letter of Credit, as specified therein, and (b) if a Series 2004-1 Ford
Cash Collateral Account has been established and funded pursuant to Section
2.08 of this Series Supplement, the Series 2004-1 Available Ford Cash
Collateral Account Amount on such date.

“Series 2004-1 Ford Letter of Credit Provider”
means the issuer of a Series 2004-1 Ford Letter of Credit.

“Series 2004-1 Ford Letter of Credit Termination
Date” means the date on which (i) all Series 2004-1 Ford Letters of Credit
have expired or been terminated and returned to the Series 2004-1 Ford Letter
of Credit Provider thereof, (ii) no Ford Reimbursement Obligations are
outstanding and (iii) Ford has been paid all amounts distributable to Ford
hereunder from the Series 2004-1 Cash Collateral Accounts.

“Series 2004-1 Global Note” means a
Regulation S Global Note, a Restricted Global Note or an Unrestricted
Global Note.

“Series 2004-1 Initial Principal Amount”
means the sum of the Class A-1 Initial Principal Amount, the
Class A-2 Initial Principal Amount, the Class A-3 Initial
Principal Amount and the Class A-4 Initial Principal Amount.

“Series 2004-1 Interest Period”
means a period commencing on and including a Payment Date and ending on and
including the day preceding the next succeeding Payment Date; provided,
however, that the initial Series 2004-1 Interest Period shall
commence on and include the Series 2004-1 Closing Date and end on
and include April 25, 2004.

“Series 2004-1 Interest Rate Hedge”
is defined in Section 2.11(a) of this Series Supplement.

 28
 

“Series 2004-1 Invested Percentage”
means on 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
Series 2004-1 Required Asset Amount, determined during the
Series 2004-1 Revolving Period as of the end of the immediately
preceding Related Month (or, until the end of the initial Related Month after
the Series 2004-1 Closing Date, on the Series 2004-1
Closing Date), or, during the Series 2004-1 Controlled Amortization
Period and the Series 2004-1 Rapid Amortization Period, as of the
last day of the Series 2004-1 Revolving Period, and the denominator
of which shall be the greater of (I) the Aggregate Asset Amount as of the end
of the immediately preceding Related Month or, until the end of the initial
Related Month after the Series 2004-1 Closing Date, as of the
Series 2004-1 Closing Date and (II) as of the same date as in
clause (I), the Aggregate Required Asset Amount;

(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 Series 2004-1
Accrued Amounts 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 2004-1 Lease Interest Payment
Deficit” means on any Payment Date an amount equal to the excess, if any,
of (a) the aggregate amount of Interest Collections which pursuant to
Section 2.02(a), (b) or (c) of this Series Supplement would have
been deposited into the Series 2004-1 Accrued Interest Account if
all payments of Monthly Variable Rent required to have been made under the HVF
Lease from and excluding the preceding Payment Date to and including such Payment
Date were made in full over (b) the aggregate amount of Interest Collections
which pursuant to Section 2.02(a), (b) or (c) of this Series
Supplement have been received for deposit into the Series 2004-1
Accrued Interest Account from and excluding the preceding Payment Date to and
including such Payment Date.

“Series 2004-1 Lease Payment Deficit”
means either a Series 2004-1 Lease Interest Payment Deficit or a
Series 2004-1 Lease Principal Payment Deficit.

“Series 2004-1 Lease Principal Payment
Carryover Deficit” means (a) for the initial Payment Date, zero and
(b) for any other Payment Date, the excess, if any, of (x) the
Series 2004-1 Lease Principal Payment Deficit, if any, on the
preceding Payment Date over (y) the amount deposited in the Series 2004-1
Distribution Account pursuant to Section 2.05(d) of this Series Supplement
on such preceding Payment Date on account of such Series 2004-1
Lease Principal Payment Deficit.

“Series 2004-1 Lease Principal Payment
Deficit” means on any Payment Date the sum of (a) the Series 2004-1
Monthly Lease Principal Payment Deficit for such

 29
 

Payment Date and
(b) the Series 2004-1 Lease Principal Payment Carryover Deficit
for such Payment Date.

“Series 2004-1 Letter of Credit”
means (i) a Series 2004-1 Ford Letter of Credit; or (ii) an irrevocable letter
of credit, substantially in the form of Exhibit B to this Series Supplement and
otherwise in form and substance satisfactory to the Insurer, issued by a
Series 2004-1 Eligible Letter of Credit Provider in favor of the Trustee
for the benefit of the Series 2004-1 Noteholders; provided,
however, that the Insurer agrees that any Series 2004-1 Letter
of Credit that is in the form and substance of the Series 2004-1
Letter of Credit delivered to the Trustee on the Series 2004-1
Closing Date is in form and substance satisfactory to the Insurer.

“Series 2004-1 Letter of Credit
Agreement” means the Letter of Credit Reimbursement Agreement and any other
agreement pursuant to which a Series 2004-1 Letter of Credit is
issued in favor of the Trustee for the benefit of the Series 2004-1
Noteholders.

“Series 2004-1 Letter of Credit Amount” means,
as of any date of determination, the sum of the Series 2004-1 Ford Letter of
Credit Liquidity Amount on such date and the Series 2004-1 Non-Ford Letter of
Credit Amount on such date.

“Series 2004-1 Letter of Credit
Expiration Date” means, with respect to any Series 2004-1 Letter
of Credit, the expiration date set forth in such Series 2004-1
Letter of Credit, as such date may be extended in accordance with the terms of
such Series 2004-1 Letter of Credit.

“Series 2004-1 Letter of Credit
Liquidity Amount” means, as of any date of determination, the sum of
(a) the aggregate amount available to be drawn on such date under each
Series 2004-1 Letter of Credit, as specified therein, and
(b) if a Series 2004-1 Cash Collateral Account has been
established and funded pursuant to Section 2.08 of this Series Supplement,
the Series 2004-1 Available Cash Collateral Account Amount on such
date.

“Series 2004-1 Letter of Credit Provider”
means the issuer of a Series 2004-1 Letter of Credit.

“Series 2004-1 Letter of Credit Reimbursement
Agreement” means any and each reimbursement agreement providing for the
reimbursement of a Series 2004-1 Letter of Credit Provider for draws under its
Series 2004-1 Letter of Credit, other than any such reimbursement agreement
between Ford and a Series 2004-1 Ford Letter of Credit Provider, as the same
may be amended, restated, modified or supplemented from time to time in
accordance with its terms.

“Series 2004-1 Limited Liquidation Event
of Default” means, so long as such event or condition continues, any event
or condition of the type specified in clauses

 30
 

(a) through (i) of
Article III of this Series Supplement that continues for thirty (30) days
(without double counting the cure period, if any, provided therein); provided
however, that any event or condition of the type specified in clauses (a)
through (g) shall cease to constitute a Series 2004-1 Limited
Liquidation Event of Default if (i) within such thirty (30) day period,
such Amortization Event shall have been cured and (ii) except for any
period during which an Insurer Default is continuing, the Trustee shall have
received the written consent of the Insurer waiving the occurrence of such
Series 2004-1 Limited Liquidation Event of Default.

“Series 2004-1 Liquidity Amount”
means, as of any date of determination, the sum of (a) the
Series 2004-1 Letter of Credit Liquidity Amount and (b) the
Series 2004-1 Available Reserve Account Amount on such date (after
giving effect to any deposits thereto on such date).

“Series 2004-1 Liquidity Deficiency” means, as
of any date of determination, the amount by which the Series 2004-1 Liquidity
Amount is less than the Series 2004-1 Required Liquidity Amount as of such
date.

“Series 2004-1 Maximum Aggregate BMW/Lexus/Mercedes/Audi
Amount” means as of
any day, an amount equal to 6% of the Adjusted Aggregate Asset Amount on such
day (or such greater percentage as may be agreed to by HVF, the Insurer
(such consent not to be unreasonably withheld or delayed) for so long as any
Series 2004-1 Notes are Outstanding, and the Rating Agencies, subject to
satisfaction of the Series 2004-1 Rating Agency Condition; provided,
that the consent of the Insurer shall not be required to the extent such
percentage is equal to or less than 15%).

“Series 2004-1 Maximum Amount” means any of the
Series 2004-1 Maximum Hyundai Amount, the Series 2004-1 Maximum Jaguar Amount,
the Series 2004-1 Maximum Kia Amount, the Series 2004-1 Maximum Land Rover
Amount, the Series 2004-1 Maximum Mazda Amount, the Series 2004-1 Maximum
Mitsubishi Amount, the Series 2004-1 Maximum Subaru Amount, the Series 2004-1
Maximum Volvo Amount, the Series 2004-1 Maximum Manufacturer Non-Eligible Vehicle
Amount, the Series 2004-1 Maximum Non-Eligible Manufacturer Amount, the Series
2004-1 Maximum Non-Eligible Vehicle Amount, the Series 2004-1 Maximum Audi
Amount, the Series 2004-1 Maximum BMW Amount, the Series 2004-1 Maximum Lexus
Amount, the Series 2004-1 Maximum Mercedes Amount and the Series 2004-1 Maximum
Aggregate BMW/Lexus/Mercedes/Audi Amount.

“Series 2004-1 Maximum Audi Amount” means, as
of any day, an amount equal to 3% of the Adjusted Aggregate Asset Amount on
such day (or such greater percentage as may be agreed to by HVF, the Insurer
(such consent not to be unreasonably withheld or delayed) for so long as any
Series 2004-1 Notes are Outstanding, and the Rating Agencies, subject to
satisfaction of the Series 2004-1 Rating Agency Condition;

 31
 

provided,
that the consent of the Insurer shall not be required to the extent such
percentage is equal to or less than 8%).

“Series 2004-1 Maximum BMW Amount” means, as of
any day, an amount equal to 3% of the Adjusted Aggregate Asset Amount on such
day (or such greater percentage as may be agreed to by HVF, the Insurer (such
consent not to be unreasonably withheld or delayed) for so long as any Series
2004-1 Notes are Outstanding, and the Rating Agencies, subject to satisfaction
of the Series 2004-1 Rating Agency Condition; provided, that the consent of the
Insurer shall not be required to the extent such percentage is equal to or less
than 5%).

“Series 2004-1 Maximum Hyundai Amount” means,
as of any day, an amount equal to 13% of the Adjusted Aggregate Asset Amount on
such day.

“Series 2004-1 Maximum Jaguar Amount” means, as
of any day, an amount equal to 5% of the Adjusted Aggregate Asset Amount on
such day.

“Series 2004-1 Maximum Kia Amount” means, as of
any day, an amount equal to 10% of the Adjusted Aggregate Asset Amount on such
day.

“Series 2004-1 Maximum Land Rover Amount”
means, as of any day, an amount equal to 5% of the Adjusted Aggregate Asset
Amount on such day.

“Series 2004-1 Maximum Lexus Amount” means, as
of any day, an amount equal to 3% of the Adjusted Aggregate Asset Amount on
such day (or such greater percentage as may be agreed to by HVF, the Insurer
(such consent not to be unreasonably withheld or delayed) for so long as any
Series 2004-1 Notes are Outstanding, and the Rating Agencies, subject to
satisfaction of the Series 2004-1 Rating Agency Condition; provided,
that the consent of the Insurer shall not be required to the extent such
percentage is equal to or less than 5%).

“Series 2004-1 Maximum Manufacturer Non-Eligible
Vehicle Amount” means, as of any day, with respect to any Manufacturer, an
amount equal to 40% of the Non-Eligible Vehicle Amount.

“Series 2004-1 Maximum Mazda Amount” means, as
of any day, an amount equal to 20% of the Adjusted Aggregate Asset Amount on
such day.

“Series 2004-1 Maximum Mercedes Amount” means,
as of any day, an amount equal to 3% of the Adjusted Aggregate Asset Amount on
such day (or such greater percentage as may be agreed to by HVF, the Insurer
(such consent not to be unreasonably withheld or delayed) for so long as any
Series 2004-1 Notes are Outstanding, and the Rating Agencies, subject to
satisfaction of the Series 2004-1 Rating Agency Condition; provided,
that the consent of the Insurer shall not be required to the extent such
percentage is equal to or less than 5%).

 32
 

“Series 2004-1 Maximum Mitsubishi Amount”
means, as of any day, an amount equal to 10% of the Adjusted Aggregate Asset
Amount on such day.

“Series 2004-1 Maximum Non-Eligible Manufacturer
Amount” means, as of any day, an amount equal to 3% of the Adjusted
Aggregate Asset Amount on such day.

“Series 2004-1 Maximum Non-Eligible Vehicle Amount”
means, as of any day, an amount equal to 65% of the Adjusted Aggregate Asset
Amount.

“Series 2004-1 Maximum Subaru Amount” means, as
of any day, an amount equal to 5% of the Adjusted Aggregate Asset Amount on
such day.

“Series 2004-1 Maximum Volvo Amount” means, as
of any day, an amount equal to 5% of the Adjusted Aggregate Asset Amount on
such day.

“Series 2004-1 Monthly Interest”
means, with respect to any Series 2004-1 Interest Period, the sum of
Class A-1 Monthly Interest, Class A-2 Monthly Interest,
Class A-3 Monthly Interest and Class A-4 Monthly Interest
for such Series 2004-1 Interest Period.

“Series 2004-1 Monthly Lease Principal
Payment Deficit” means on any Payment Date an amount equal to the excess,
if any, of (a) the aggregate amount of Principal Collections which
pursuant to Section 2.02(a), (b) or (c) of this Series
Supplement would have been deposited into the Series 2004-1
Collection Account if all payments required to have been made under the HVF
Lease from and excluding the preceding Payment Date to and including such
Payment Date were made in full over (b) the aggregate amount of Principal
Collections which pursuant to Section 2.02(a), (b) or (c) of
this Series Supplement have been received for deposit into the Series 2004-1
Collection Account (without giving effect to any amounts deposited into the
Series 2004-1 Accrued Interest Account pursuant to the proviso in
Section 2.02(c)(ii) of this Series Supplement) from and excluding the
preceding Payment Date to and including such Payment Date.

“Series 2004-1 Non-Ford Cash Collateral Account”
has the meaning specified in Section  2.08(g)(II) of this Series
Supplement.

“Series 2004-1 Non-Ford Cash Collateral Account
Collateral” has the meaning specified in Section  2.08(a)(II)
of this Series Supplement.

“Series 2004-1 Non-Ford Cash Collateral Percentage”
means, as of any date of determination, the percentage equivalent of a
fraction, the numerator of which is the Series 2004-1 Available Non-Ford Cash
Collateral Account Amount as of such date and the denominator of which is the
Series 2004-1 Non-Ford Letter of Credit Liquidity Amount as of such date.

 33
 

“Series 2004-1 Non-Ford Letter of Credit” means
each Series 2004-1 Letter of Credit other than a Series 2004-1 Ford Letter of
Credit.

“Series 2004-1 Non-Ford 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 the Series 2004-1
Non-Ford Letters of Credit, as specified therein, and (ii) if the Series 2004-1
Non-Ford Cash Collateral Account has been established and funded pursuant to Section
2.08 of this Series Supplement, the Series 2004-1 Available Non-Ford Cash
Collateral Account Amount on such date and (b) the outstanding principal amount
of the Series 2004-1 Demand Note on such date.

“Series 2004-1 Non-Ford 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 2004-1
Non-Ford Letter of Credit, as specified therein, and (b) if a Series 2004-1
Non-Ford Cash Collateral Account has been established and funded pursuant to Section
2.08 of this Series Supplement, the Series 2004-1 Available Non-Ford Cash
Collateral Account Amount on such date.

“Series 2004-1 Non-Ford Letter of Credit Provider”
means the issuer of a Series 2004-1 Non-Ford Letter of Credit.

“Series 2004-1 Note Rate” means the
Class A-1 Note Rate, the Class A-2 Note Rate, the
Class A-3 Note Rate or the Class A-4 Note Rate, as the
context may require.

“Series 2004-1 Note Owner” means,
with respect to a Series 2004-1 Global Note, the Person who is the
beneficial owner of an interest in such Series 2004-1 Global Note,
as reflected on the books of DTC, or on the books of a Person maintaining an
account with DTC (directly as a Clearing Agency Participant or as an indirect
participant, in each case in accordance with the rules of DTC).

“Series 2004-1 Noteholders” means,
collectively, the Class A-1 Noteholders, the Class A-2
Noteholders, the Class A-3 Noteholders and the Class A-4
Noteholders.

“Series 2004-1 Notes” means,
collectively, the Class A-1 Notes, the Class A-2 Notes,
the Class A-3 Notes and the Class A-4 Notes.

“Series 2004-1 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, the Class A-3 Outstanding Principal Amount and the
Class A-4 Outstanding Principal Amount as of such date.

“Series 2004-1 Overcollateralization
Amount” means (i) as of any date of determination on which no
Aggregate Asset Amount Deficiency exists, the Series 2004-1

 34
 

Required
Overcollateralization Amount as of such date or (ii) on which an Aggregate
Asset Amount Deficiency exists, the excess, if any, of the Series 2004-1
Asset Amount over the Series 2004-1 Principal Amount as of such
date.

“Series 2004-1 Past Due Rent Payment”
has the meaning specified in Section 2.02(d) of this Series Supplement.

“Series 2004-1 Percentage” means, as
of any date of determination, a fraction, expressed as a percentage, the
numerator of which is the Series 2004-1 Principal Amount as of such
date and the denominator of which is the Aggregate Principal Amount as of such
date.

“Series 2004-1 Principal Allocation”
has the meaning specified in Section 2.02 (a)(ii) of this Series
Supplement.

“Series 2004-1 Principal Amount”
means, as of any date of determination, the sum of the Class A-1
Principal Amount, the Class A-2 Principal Amount, the Class A-3
Principal Amount and the Class A-4 Principal Amount as of such date.

“Series 2004-1 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 2004-1 Notes and ending upon the
earlier to occur of (i) the date on which (A) the Series 2004-1
Notes are fully paid, (B) the Insurer has been paid all Insurer Fees and all
Insurer Reimbursement Amounts then due, (C) each Interest Rate Hedge Provider
has been paid all amounts payable to it by HVF under the related
Series 2004-1 Interest Rate Hedge, and (D) the Series 2004-1 Ford
Letter of Credit Termination Date and (ii) the termination of the
Indenture.

“Series 2004-1 Rating Agency Condition”
means, with respect to the Series 2004-1 Notes and any action,
including the issuance of an additional Series of Notes, that each Rating
Agency shall have notified HVF, the Insurer and the Trustee in writing that
such action will not result in a reduction or withdrawal of the ratings of the
Series 2004-1 Notes.

“Series 2004-1 Required Asset Amount”
means, as of any date of determination, the sum of (i) the Series 2004-1
Principal Amount and (ii) the Series 2004-1 Required
Overcollateralization Amount as of such date.

“Series 2004-1 Required Asset Amount
Percentage” means, as of any date of determination, the percentage
equivalent of a fraction, the numerator of which is the Series 2004-1
Required Asset Amount and the denominator of which is the Aggregate Required
Asset Amount as of such date.

 35
 

“Series 2004-1 Required Enhancement
Amount” means, as of any date of determination, the sum of (i) the
product of the Series 2004-1 Required Enhancement Percentage as of
such date and the Series 2004-1 Principal Amount as of such date and
(ii) the Series 2004-1 Required Enhancement Incremental Amount
as of such date; provided, however, that, as of any date of determination
after the occurrence of a Series 2004-1 Limited Liquidation Event of
Default, the Series 2004-1 Required Enhancement Amount shall equal
the lesser of (x) the Series 2004-1 Principal Amount as of such date
and (y) the sum of (l) the product of the Series 2004-1 Required
Enhancement Percentage as of such date of determination and the
Series 2004-1 Principal Amount as of the date of the occurrence of
such Series 2004-1 Limited Liquidation Event of Default and (2) the
Series 2004-1 Required Enhancement Incremental Amount as of such
date of determination.

“Series 2004-1 Required Enhancement
Incremental Amount” means (i) as of the Series 2004-1
Closing Date, $0;

(ii)           as
of any date thereafter, $25,125,000 (or such lesser amount as may be required
from time to time for the Shadow Rating for the Series 2004-1 Notes to be BBB-
and Baa3 or higher, by Standard & Poor’s and Moody’s, respectively); and

(iii) the product of (A) the Series 2004-1 Required
Asset Amount Percentage as of the immediately preceding Business Day and (B)
the sum of (1) the excess, if any, of the Non-Eligible Vehicle Amount
(excluding from the calculation thereof, to the extent that an Event of
Bankruptcy has occurred with respect to any of Ford, GM, Chrysler, Toyota and
Honda, the Net Book Value of the HVF Vehicles (other than Non-Program Vehicles
manufactured by any such Manufacturer as of the date of the occurrence of such
Event of Bankruptcy) manufactured by each such Manufacturer for which an Event
of Bankruptcy has occurred and any amounts related to such HVF Vehicles due
from such Manufacturer) over the Series 2004-1 Maximum Non-Eligible Vehicle
Amount as of such immediately preceding Business Day, (2) the excess, if any,
of the Hyundai Amount over the Series 2004-1 Maximum Hyundai Amount as of such
immediately preceding Business Day, (3) the excess, if any, of the Jaguar
Amount over the Series 2004-1 Maximum Jaguar Amount as of such immediately
preceding Business Day, (4) the excess, if any, of the Kia Amount over the
Series 2004-1 Maximum Kia Amount as of such immediately preceding Business Day,
(5) the excess, if any, of the Land Rover Amount over the Series 2004-1 Maximum
Land Rover Amount as of such immediately preceding Business Day, (6) the
excess, if any, of the Mazda Amount over the Series 2004-1 Maximum Mazda Amount
as of such immediately preceding Business Day, (7) the excess, if any, of the
Mitsubishi Amount over the Series 2004-1 Maximum Mitsubishi Amount as of such
immediately preceding Business Day, (8) the excess, if any, of the Subaru
Amount over the Series 2004-1 Maximum Subaru Amount as of such immediately
preceding Business Day, (9) the excess, if any, of the Volvo Amount over the
Series 2004-1 Maximum Volvo Amount as of such immediately preceding Business
Day, (10) the excess, if any, of the Non-Eligible Manufacturer Amount over the
Series 

 36
 

2004-1 Maximum
Non-Eligible Manufacturer Amount as of such immediately preceding Business Day,
(11) the excess, if any, of the Manufacturer Non-Eligible Vehicle Amount with
respect to any Manufacturer (excluding from the calculation thereof, to the
extent that an Event of Bankruptcy has occurred with respect to any of Ford,
GM, Chrysler, Toyota and Honda, the Net Book Value of the HVF Vehicles (other
than Non-Program Vehicles manufactured by any such Manufacturer as of the date
of the occurrence of such Event of Bankruptcy) manufactured by each such
Manufacturer for which an Event of Bankruptcy has occurred and any amounts
related to such HVF Vehicles due from such Manufacturer) over the Series 2004-1
Maximum Manufacturer Non-Eligible Vehicle Amount as of such immediately
preceding Business Day, (12) the excess, if any, of the Audi Amount over the
Series 2004-1 Maximum Audi Amount as of such immediately preceding Business Day, (13) the excess, if any of the BMW Amount
over the Series 2004-1 Maximum BMW Amount as of such immediately preceding
Business Day, (14) the excess, if any of the Lexus Amount over the Series
2004-1 Maximum Lexus Amount as of such immediately preceding Business Day, (15)
the excess, if any of the Mercedes Amount over the Series 2004-1 Maximum
Mercedes Amount as of such immediately preceding Business Day and (16) the
excess, if any of the Aggregate BMW/Lexus/Mercedes/Audi Amount over the Series
2004-1 Maximum Aggregate BMW/Lexus/Mercedes/Audi Amount as of such immediately
preceding Business Day.  The
Manufacturer Non-Eligible Vehicle Amounts with respect to Ford, Volvo, Jaguar
and Land Rover shall be calculated on an aggregate basis so that they will be
considered as one Manufacturer for the purpose of the calculation of the Series
2004-1 Maximum Manufacturer Non-Eligible Vehicle Amount for so long as each of
Volvo, Jaguar and Land Rover is an Affiliate of Ford.

“Series 2004-1 Required Enhancement Percentage”
means, as of any date of determination, the sum of (i) the product of (A) the
Series 2004-1 Required Program Vehicle Enhancement Percentage as of such date
times (B) the Eligible Program Vehicle Percentage as of such date and (ii) the
product of (A) the Series 2004-1 Required Non-Eligible Vehicle Enhancement
Percentage as of such date times (B) the Non-Eligible Vehicle Percentage as of
such date.

“Series 2004-1 Required Liquidity Amount”
means, as of any date of determination, an amount equal to the product of the
Series 2004-1 Required Liquidity Percentage as of such date times
the Series 2004-1 Principal Amount on such date.

“Series 2004-1 Required Liquidity
Percentage” means, as of any date of determination, (i) the sum of
(A) the product of (1) 6.10% times (2) the Class A-1
Principal Amount on such date, (B) the product of (1) 2.25% times
(2) the Class A-2 Principal Amount on such date, (C) the
product of (1) 2.50% times (2) the Class A-3 Principal
Amount on such date and (D) the product of (1) 2.75% times
(2) the Class A-4 Principal Amount on such date divided by
(ii) the Series 2004-1 Principal Amount on such date.

 37
 

“Series 2004-1 Required Non-Eligible
Vehicle Enhancement Percentage” means, as of any date of determination, the
greater of (a) the Series 2004-1 Weighted Average Required
Non-Eligible Vehicle Enhancement Percentage as of such date and (b) the
sum of (i) the Series 2004-1 Weighted Average Required
Non-Eligible Vehicle Enhancement Percentage as of such date and (ii) an
amount equal to 100% minus the lower of (x) the lowest Non-Program Vehicle
Measurement Month Average for any Measurement Month within the preceding 12
calendar months (or such fewer number of months as have elapsed since the
Series 2004-1 Closing Date) and (y) the lowest Market Value Average
as of any Determination Date within the preceding 12 calendar months (or such
fewer number of months as have elapsed since the Series 2004-1
Closing Date).

“Series 2004-1 Required
Overcollateralization Amount” means, as of any date of determination, the excess,
if any, of (a) the Series 2004-1 Required Enhancement Amount
over (b) the sum of (i) the Series 2004-1 Available Reserve
Account Amount as of such date (after giving effect to any deposits thereto and
withdrawals and releases therefrom on such date), (ii) the
Series 2004-1 Letter of Credit Amount as of such date and
(iii) the amount of cash and Permitted Investments on deposit in the
Series 2004-1 Excess Collection Account on such date.

“Series 2004-1 Required Program Vehicle
Enhancement Percentage” means, as of any date of determination,
(i) the sum of (A) the product of (1) 17.00% times (2) the
Class A-1 Principal Amount on such date, (B) the product of
(1) 13.00% times (2) the Class A-2 Principal Amount on
such date, (C) the product of (1) 13.25% times (2) the
Class A-3 Principal Amount on such date and (D) the product of
(1) 13.50% times (2) the Class A-4 Principal Amount on
such date divided by (ii) the Series 2004-1 Principal Amount on
such date.

“Series 2004-1 Required Reserve Account
Amount” means, with respect to any date of determination, an amount equal
to the greater of (a) the excess, if any, of the Series 2004-1
Required Liquidity Amount on such date over the Series 2004-1 Letter
of Credit Liquidity Amount on such date and (b) the excess, if any, of the
Series 2004-1 Required Enhancement Amount over the Series 2004-1
Enhancement Amount (excluding therefrom the Series 2004-1 Available
Reserve Account Amount) on such date.

“Series 2004-1 Reserve Account” has
the meaning specified in Section 2.07(a) of this Series Supplement.

“Series 2004-1 Reserve Account
Collateral” has the meaning specified in Section 2.07(d) of this
Series Supplement.

“Series 2004-1 Reserve Account Surplus”
means, with respect to any date of determination, the excess, if any, of the
Series 2004-1 Available Reserve Account Amount (after giving effect
to any deposits thereto and withdrawals therefrom on such date) over the
Series 2004-1 Required Reserve Account Amount on such date.

 38
 

“Series 2004-1 Revolving Period”
means the period from and including the Series 2004-1 Closing Date
to the earlier of (i) the commencement of the Series 2004-1
Rapid Amortization Period and (ii) the commencement of the Three-Year
Notes Controlled Amortization Period.

“Series 2004-1 Series Account Collateral”
has the meaning specified in Section 2.01(d) of this Series Supplement.

“Series 2004-1 Series Accounts” has
the meaning specified in Section 2.01(a) of this Series Supplement.

“Series 2004-1 Weighted Average Required
Non-Eligible Vehicle Enhancement Percentage” means, as of any date of
determination, (i) the sum of (A) the product of (1) 23.25%
times (2) the Class A-1 Principal Amount on such date,
(B) the product of (1) 18.00% times (2) the Class A-2
Principal Amount on such date, (C) the product of (1) 18.25% times
(2) the Class A-3 Principal Amount on such date and
(D) the product of (1) 18.50% times (2) the Class A-4
Principal Amount on such date divided by (ii) the Series 2004-1
Principal Amount on such date.

“Series-Specific Collection Account” means the
collection account established pursuant to a Series Supplement for the benefit
of a Series of Notes, which Series Supplement provides for the distribution of
funds allocated to such collection account to the payment of Ford Reimbursement
Obligations, after the payment of principal of such Series of Notes and prior
to any distribution or other release of such funds to HVF and prior to any
payment of termination payments under the Swap Agreements, and which provides
that for so long as the Ford LOC Exposure Amount is greater than zero no such
funds will be distributed to HVF or applied to make termination payments under
the Swap Agreements if, after giving effect to such distribution or
application, the Fleet Equity Amount would be less than the Required Minimum
Fleet Equity Amount.

“Series-Specific
Excess Collection Account” means the excess collection account established
pursuant to a Series Supplement for the benefit of a Series of Notes, which
Series Supplement provides for the distribution of funds allocated to such
excess collection account to the payment of Ford Reimbursement Obligations
after the payment of principal of such Series of Notes or any other Series of
Notes and prior to any distribution or other release of such funds to HVF and prior
to any payment of termination payments under the Swap Agreements, and which
provides that for so long as the Ford LOC Exposure Amount is greater than zero
no such funds will be distributed to HVF or applied to make termination
payments under the Swap Agreements if, after giving effect to such distribution
or application, the Fleet Equity Amount would be less than the Required Minimum
Fleet Equity Amount.

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

 39
 

“Shadow Rating” means the rating of the Series
2004-1 Notes without giving effect to the Insurance Policy.

“Subaru Amount” means, as of any date of
determination, an amount equal to the Manufacturer Non-Eligible Vehicle Amount
and Manufacturer Eligible Program Vehicle Amount, in each case with respect to
Subaru as of such date.

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

“Third-Party Market Value” means, with respect
to any HVF Vehicle as of any date of determination, the market value of such
HVF Vehicle as specified in the Related Month’s published NADA Guide for the
model class and model year of such HVF Vehicle based on the average equipment
and the average mileage of each HVF Vehicle of such model class and model year;
provided that if the NADA Guide is being published but such HVF Vehicle
is not included therein, the Third-Party Market Value shall mean the Net Book
Value of such HVF Vehicle; provided further that if the NADA Guide was
not published in the Related Month, the Third-Party Market Value of such HVF
Vehicle shall be based on the market value specified in the Finance Guide for
the model class and model year of such HVF Vehicle based on the average
equipment and the average mileage of each HVF Vehicle of such model class and
model year; provided that if the Finance Guide is being published but
such HVF Vehicle is not included therein, the Third-Party Market Value shall
mean the Net Book Value of such HVF Vehicle; provided further that if
the Finance Guide was not published in the Related Month, the Third-Party
Market Value of such HVF Vehicle shall be based on an independent third-party
data source approved by each Rating Agency that is rating any Series of Notes
at the request of HVF based on the average equipment and average mileage of
each HVF Vehicle of such model class and model year or based upon such other
methodology approved by each such Rating Agency.

“Three-Year Notes” means, collectively, the
Class A-1 Notes and the Class A-2 Notes.

“Three-Year Notes Controlled Amortization Period”
means the period commencing at the close of business on October 31, 2006 (or,
if such day is not a Business Day, the Business Day immediately preceding such
day) and continuing to the earlier of (i) the commencement of the
Series 2004-1 Rapid Amortization Period and (ii) the date on
which the Three-Year Notes are fully paid.

“Three-Year Notes Expected Final Payment Date”
means the May 2007 Payment Date.

“Three-Year Notes Legal Final Payment Date”
means the May 2008 Payment Date.

 40

“Unrestricted Global Notes” has the meaning
specified in Section 5.03 of this Series Supplement.

“Volvo Amount” means, as of any date of
determination, an amount equal to the sum of the Volvo Program Amount and the
Volvo Non-Program Amount as of such date.

“Volvo Non-Program Amount” means, as of any
date of determination, an amount equal to the Manufacturer Non-Eligible Vehicle
Amount with respect to Volvo as of such date.

“Volvo Program Amount” means, as of any date of
determination, an amount equal to the Manufacturer Eligible Program Vehicle
Amount with respect to Volvo as of such date.

“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 2004-1
Maximum Amount.

“Waiver Request” is defined in Article IV.

ARTICLE II

Series 2004-1 Allocations

With respect to the
Series 2004-1 Notes only, the following shall apply:

SECTION
2.01.  Series 2004-1 Series
Accounts.  (a)  Establishment of Series 2004-1
Series Accounts.  HVF shall establish and
maintain in the name of the Trustee for the benefit of the Series 2004-1
Noteholders, the Insurer and Ford three accounts:  the Series 2004-1 Collection
Account (such account, the “Series 2004-1 Collection Account”),
the Series 2004-1 Accrued Interest Account (such account, the “Series 2004-1
Accrued Interest Account”) and the Series 2004-1 Excess
Collection Account (such account, the “Series 2004-1 Excess
Collection Account” and, together with the Series 2004-1
Collection Account and the Series 2004-1 Accrued Interest Account,
the “Series 2004-1 Series Accounts”).  Each Series 2004-1 Series Account
shall bear a designation clearly indicating that the funds deposited therein
are held for the benefit of the Series 2004-1 Noteholders, the
Insurer and Ford.  Each Series 2004-1
Series Account shall be an Eligible Deposit Account.  If a Series 2004-1 Series Account
is at any time no longer an Eligible Deposit Account, HVF shall, within 10
Business Days of obtaining knowledge that such Series 2004-1 Series
Account is no longer an Eligible Deposit Account, establish a new
Series 2004-1 Series Account that is an Eligible Deposit
Account.  If a new Series 2004-1
Series Account is established, HVF

 41
 

shall instruct the Trustee in writing to transfer
all cash and investments from the non-qualifying Series 2004-1
Series Account into the new Series 2004-1 Series Account.  Initially, each of the Series 2004-1
Series Accounts will be established with The Bank of New York.

(b)  Administration of the Series 2004-1
Series Accounts.  HVF may instruct
(by standing instructions or otherwise) the institution maintaining each of the
Series 2004-1 Series Accounts to invest funds on deposit in such
Series 2004-1 Series Account from time to time in Permitted Investments;
provided,
however, that (x) any such investment in the Series 2004-1
Excess Collection Account shall mature not later than the Business Day
following the date on which such funds were received and (y) any such
investment in the Series 2004-1 Collection Account or the
Series 2004-1 Accrued Interest Account shall mature not later than
the Business Day prior to the first Payment Date following the date on which
such funds were received, unless any such Permitted Investment is held with the
Trustee, then such investment may mature on such Payment Date so long as such
funds shall be available for withdrawal on or prior to such Payment Date.  HVF 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 initial
purchase price of such Permitted Investment. 
In the absence of written investment instructions hereunder, funds on
deposit in the Series 2004-1 Series Accounts shall remain
uninvested.

(c)  Earnings from Series 2004-1
Series Accounts.  All interest and
earnings (net of losses and investment expenses) paid on funds on deposit in
the Series 2004-1 Series Accounts shall be deemed to be on deposit
therein and available for distribution.

(d)  Series 2004-1 Series Accounts
Constitute Additional Collateral for Series 2004-1 Notes.  In order to secure and provide for the
repayment and payment of the Note Obligations with respect to the
Series 2004-1 Notes, HVF hereby grants a security interest in and
assigns, pledges, grants, transfers and sets over to the Trustee, for the
benefit of the Series 2004-1 Noteholders, the Insurer and Ford, all
of HVF’s right, title and interest in and to the following (whether now or
hereafter existing or acquired): 
(i) the Series 2004-1 Series Accounts, 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 2004-1 Series Accounts 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 2004-1
Series Accounts, 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 2004-1 Series Accounts, 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,

 42
 

including, without limitation, cash (the
items in the foregoing clauses (i) through (vi) are referred to,
collectively, as the “Series 2004-1 Series Account Collateral”).

SECTION
2.02.  Allocations with Respect to the
Series 2004-1 Notes.  The
net proceeds from the initial sale of the Series 2004-1 Notes will
be deposited into the Series 2004-1 Excess Collection Account.  All amounts payable to HVF under any
Series 2004-1 Interest Rate Hedges will be deposited into the
Series 2004-1 Collection Account. 
On each Business Day on which Collections are deposited into the
Collection Account (each such date, a “Series 2004-1 Deposit Date”),
the Administrator will direct the Trustee in writing pursuant to the
Administration Agreement to apply all amounts deposited into the Collection
Account in accordance with the provisions of this Section 2.02:

(a)  Allocations of Collections During the
Series 2004-1 Revolving Period. 
During the Series 2004-1 Revolving Period, the Administrator
will direct the Trustee in writing pursuant to the Administration Agreement,
prior to 1:00 p.m. (New York City time) on each Series 2004-1
Deposit Date, to apply all amounts deposited into the Collection Account as set
forth below:

(i) deposit into the Series 2004-1
Collection Account an amount equal to the sum of (A) the Series 2004-1
Invested Percentage (as of such day) of the aggregate amount of Interest Collections
on such day and (B) any amounts received by the Trustee in respect of the
Series 2004-1 Interest Rate Hedges. 
All such amounts deposited into the Series 2004-1 Collection
Account shall thereafter be deposited into the Series 2004-1 Accrued
Interest Account; and

(ii) deposit into the Series 2004-1
Excess Collection Account an amount equal to the Series 2004-1
Invested Percentage (as of such day) of the aggregate amount of Principal
Collections on such day (for any such day, the “Series 2004-1
Principal Allocation”); provided, however, if a Waiver Event shall have
occurred, then such application shall be modified as provided in
Article IV.

(b)  Allocations of Collections During any
Series 2004-1 Controlled Amortization Period.  During any Series 2004-1
Controlled Amortization Period, the Administrator will direct the Trustee in
writing pursuant to the Administration Agreement, prior to 1:00 p.m. (New York
City time) on each Series 2004-1 Deposit Date, to apply all amounts
deposited into the Collection Account as set forth below:

(i) deposit into the Series 2004-1
Collection Account an amount determined as set forth in
Section 2.02(a)(i) above for such day, which amount shall thereafter
be deposited into the Series 2004-1 Accrued Interest Account; and

(ii) (A) with respect to the Three-Year Notes
Controlled Amortization Period, deposit into the Series 2004-1
Collection Account an amount equal to the Series 2004-1 Principal
Allocation for such day, which amount shall be used to

 43
 

make principal payments on a pro rata basis in respect of the
Three-Year Notes; provided, however, that if the Monthly Total Principal
Allocation for the current Related Period 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 deposited into the
Series 2004-1 Excess Collection Account; and provided further
that if a Waiver Event shall have occurred, then such application shall be
modified as provided in Article IV, (B) with respect to the Class A-3
Controlled Amortization Period, deposit into the Series 2004-1
Collection Account an amount equal to the Series 2004-1 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 for the current Related Period exceeds the Class A-3
Controlled Distribution Amount, then the amount of such excess shall be
deposited into the Series 2004-1 Excess Collection Account; and provided
further that if a Waiver Event shall have occurred, then such application
shall be modified as provided in Article IV, and (C) with respect to the
Class A-4 Controlled Amortization Period, deposit into the
Series 2004-1 Collection Account an amount equal to the
Series 2004-1 Principal Allocation for such day, which amount shall
be used to make principal payments in respect of the Class A-4
Notes; provided, however, that if the Monthly Total Principal Allocation for the
current Related Period exceeds the Class A-4 Controlled Distribution
Amount, then the amount of such excess shall be deposited into the
Series 2004-1 Excess Collection Account; and provided further
that if a Waiver Event shall have occurred, then such application shall be
modified as provided in Article IV.

(c) Allocations
of Collections During the Series 2004-1 Rapid Amortization Period.  During the Series 2004-1 Rapid
Amortization Period, the Administrator will direct the Trustee in writing
pursuant to the Administration Agreement, prior to 1:00 p.m. (New York City
time) on any Series 2004-1 Deposit Date, to apply all amounts
deposited into the Collection Account as set forth below:

(i) deposit into the Series 2004-1
Collection Account an amount determined as set forth in Section 2.02(a)(i)
above for such day, which amount shall be thereafter deposited into the
Series 2004-1 Accrued Interest Account; and

(ii) deposit into the Series 2004-1
Collection Account an amount equal to the Series 2004-1 Principal
Allocation for such day, which amount shall be used to make principal payments
(I) on a pro rata basis in respect of the Series 2004-1 Notes until
the Series 2004-1 Notes have been paid in full; and (II) once
the Series 2004-1 Notes have been paid in full, to Ford, all unpaid Ford
Reimbursement Obligations until Ford has been paid in full, provided that if on
any Determination Date (A) the Administrator determines that the amount
anticipated to be available from Interest Collections allocable to the
Series 2004-1 Notes, any amounts payable to the Trustee in respect
of any Series 2004-1 Interest

 44
 

Rate Hedges and other amounts available pursuant to Section 2.03
of this Series Supplement to pay Series 2004-1 Adjusted Monthly
Interest on the next succeeding Payment Date will be less than the sum of the
Series 2004-1 Adjusted Monthly Interest and any Fixed Rate Payments
for such Payment Date and (B) the Series 2004-1 Enhancement Amount
is greater than zero, then the Administrator shall direct the Trustee in
writing to withdraw from the Series 2004-1 Collection Account a
portion of the Principal Collections allocated to the Series 2004-1
Notes during the Related Month equal to the lesser of such insufficiency and
the Series 2004-1 Enhancement Amount and deposit such amount into
the Series 2004-1 Accrued Interest Account to be treated as Interest
Collections on such Payment Date.

(d)  Past Due Rental Payments.  Notwithstanding the foregoing, if, after the
occurrence of a Series 2004-1 Lease Payment Deficit, the Lessee
shall make a payment of Rent or other amount payable by the Lessee under the
HVF Lease on or prior to the fifth Business Day after the occurrence of such
Series 2004-1 Lease Payment Deficit (a “Past Due Rent Payment”),
the Administrator shall direct the Trustee in writing pursuant to the
Administration Agreement to deposit into the Series 2004-1
Collection Account an amount equal to the Series 2004-1 Invested
Percentage as of the date of the occurrence of such Series 2004-1
Lease Payment Deficit of the Collections attributable to such Past Due Rent
Payment (the “Series 2004-1 Past Due Rent Payment”).  The Administrator shall instruct the Trustee
in writing pursuant to the Administration Agreement to withdraw from the
Series 2004-1 Collection Account and apply the Series 2004-1
Past Due Rent Payment in the following order:

(i) if the occurrence of the related
Series 2004-1 Lease Payment Deficit resulted in a demand for payment
being made under the Insurance Policy, pay to the Insurer an amount equal to
the lesser of (x) the unreimbursed amount of the payment made by the Insurer
under the Insurance Policy in respect of such demand and (y) the amount of the
Series 2004-1 Past Due Rent Payment;

(ii) if the occurrence of the related
Series 2004-1 Lease Payment Deficit resulted in one or more LOC
Credit Disbursements being made under the Series 2004-1 Ford Letters of Credit,
pay to Ford an amount equal to the lesser of (x) the unreimbursed amount of
such LOC Credit Disbursement and (y) the amount of the Series 2004-1
Past Due Rent Payment remaining after any payment pursuant to clause (i)
above;

(iii) if the occurrence of such Series 2004-1
Lease Payment Deficit resulted in a withdrawal being made from the Series
2004-1 Ford Cash Collateral Account, deposit in the Series 2004-1 Ford Cash Collateral
Account an amount equal to the lesser of (x) the amount of the Series 2004-1
Past Due Rent Payment remaining after any payments pursuant to clauses (i)
and (ii) above and (y) the

 45
 

amount withdrawn from the Series 2004-1 Ford Cash Collateral Account on
account of such Series 2004-1 Lease Payment Deficit;

(iv) if the occurrence of the related Series
2004-1 Lease Payment Deficit resulted in one or more LOC Credit Disbursements
being made under the Series 2004-1 Non-Ford Letters of Credit, pay to each Series
2004-1 Non-Ford Letter of Credit Provider who made such a LOC Credit
Disbursement for application in accordance with the provisions of the
applicable Letter of Credit Reimbursement Agreement an amount equal to the
lesser of (x) the unreimbursed amount of such Series 2004-1 Non-Ford Letter of
Credit Provider’s LOC Credit Disbursement and (y) such Series 2004-1 Non-Ford
Letter of Credit Provider’s pro rata share, calculated on the basis of the
unreimbursed amount of each such Series 2004-1 Non-Ford Letter of Credit
Provider’s LOC Credit Disbursement, of the amount of the Series 2004-1 Past Due
Rent Payment remaining after any payment pursuant to clauses (i) through (iii)
above;

(v) if the occurrence of such Series 2004-1
Lease Payment Deficit resulted in a withdrawal being made from the Series
2004-1 Non-Ford Cash Collateral Account, deposit in the Series 2004-1 Non-Ford
Cash Collateral Account an amount equal to the lesser of (x) the amount of the
Series 2004-1 Past Due Rent Payment remaining after any payments pursuant to
clauses (i) through (iv) above and (y) the amount withdrawn from the Series
2004-1 Non-Ford Cash Collateral Account on account of such Series 2004-1 Lease
Payment Deficit;

(vi) if the occurrence of such Series 2004-1
Lease Payment Deficit resulted in a withdrawal being made from the Series
2004-1 Reserve Account pursuant to Section 2.03(d) of this Series
Supplement, deposit in the Series 2004-1 Reserve Account an amount equal to the
lesser of (x) the amount of the Series 2004-1 Past Due Rent Payment remaining
after any payments pursuant to clauses (i) through (v) above
and (y) the excess, if any, of the Series 2004-1 Required Reserve Account
Amount over the Series 2004-1 Available Reserve Account Amount on such day;

(vii) deposit into the Series 2004-1
Accrued Interest Account the amount, if any, by which the Series 2004-1
Lease Interest Payment Deficit, if any, relating to such Series 2004-1
Lease Payment Deficit exceeds the amount of the Series 2004-1 Past
Due Rent Payment applied pursuant to clauses (i) through (vi) above; and

(viii) deposit into the Series 2004-1
Excess Collection Account and treat as Principal Collections the remaining
amount of the Series 2004-1 Past Due Rent Payment.

   (e)  Amounts Allocated from Other Series.  Amounts allocated to other Series of Notes
that have been reallocated by HVF to the Series 2004-1 Notes
(i) during

 46
 

the Series 2004-1 Revolving Period
shall be deposited into the Series 2004-1 Excess Collection Account
and applied in accordance with Section 2.02(f) of this Series Supplement
and (ii) during the Series 2004-1 Controlled Amortization
Period or the Series 2004-1 Rapid Amortization Period shall be
deposited into the Series 2004-1 Collection Account and applied in
accordance with Section 2.02(b) or 2.02(c), as the case may be, of this
Series Supplement to make principal payments in respect of the Series 2004-1
Notes and after the Series 2004-1 Notes have been paid in full, to pay Ford all
unpaid Ford Reimbursement Obligations.

(f)  Series 2004-1 Excess Collection
Account.  Amounts deposited into the
Series 2004-1 Excess Collection Account on any Series 2004-1
Deposit Date will be (i) first, withdrawn and deposited in the
Series 2004-1 Reserve Account in an amount up to the excess, if any,
of the Series 2004-1 Required Reserve Account Amount for such date
over the Series 2004-1 Available Reserve Account Amount for such
date, (ii) second, used to pay the principal amount of other Series
of Notes that are then required to be paid or, at the option of HVF, to pay the
principal amount of other Series of Notes that may be paid under the Indenture,
in each case, only to the extent that no Aggregate Asset Amount Deficiency,
Series 2004-1 Enhancement Deficiency or other Amortization Event
with respect to the Series 2004-1 Notes would result therefrom or
exist immediately thereafter, (iii) third, used to pay Ford all unpaid
Ford Reimbursement Obligations, and (iv) fourth, any remaining funds may
be released to HVF, in the cases of clauses (ii) through (iv), only to the
extent that no Aggregate Asset Amount Deficiency, Series 2004-1
Enhancement Deficiency or other Amortization Event with respect to the
Series 2004-1 Notes would result therefrom or exist immediately
thereafter and in the case of clause (iv), only for so long as the Ford LOC
Exposure Amount is greater than zero, solely to the extent that after giving
effect to such payment or release or immediately after such payment or release,
the Fleet Equity Condition would be satisfied. 
Notwithstanding the foregoing, on the earlier of the first day of the
Series 2004-1 Controlled Amortization Period and the
Series 2004-1 Rapid Amortization Period, all funds on deposit in the
Series 2004-1 Excess Collection Account will be withdrawn from the
Series 2004-1 Excess Collection Account and deposited into the
Series 2004-1 Collection Account and applied in accordance with
Section 2.02(b)(ii) or 2.02(c)(ii), as the case may be, of this
Series Supplement.

SECTION
2.03.  Application of Interest
Collections.  On the fourth Business
Day prior to each Payment Date, as provided below, the Administrator shall
instruct the Trustee in writing pursuant to the Administration Agreement to
withdraw, and on such Payment Date the Trustee, acting in accordance with such
instructions, shall withdraw the amounts required to be withdrawn from the
Series 2004-1 Accrued Interest Account pursuant to
Section 2.03(b) below in respect of all funds available from any
Series 2004-1 Interest Rate Hedges and Interest Collections
processed since the preceding Payment Date and allocated to the holders of the
Series 2004-1 Notes.

 47
 

(a)  Appointment of Calculation Agent.  BNY MTC is hereby appointed Calculation Agent
for the purpose of determining the Class A-1 Note Rate for each
Series 2004-1 Interest Period. 
On each LIBOR Determination Date, the Calculation Agent shall determine
the Class A-1 Note Rate for the next succeeding Series 2004-1
Interest Period and deliver notice of the Class A-1 Note Rate to the
Trustee and the Administrator.

(b)  Note Interest with respect to the
Series 2004-1 Notes.  On
the fourth Business Day prior to each Payment Date, the Administrator shall
instruct the Trustee in writing pursuant to the Administration Agreement as to
the amount to be withdrawn from the Series 2004-1 Accrued Interest
Account to the extent funds are anticipated to be available from Interest
Collections allocable to the Series 2004-1 Notes processed from but
not including the preceding Payment Date through the succeeding Payment Date
and any amounts payable to HVF under any Series 2004-1 Interest Rate
Hedge during that period in respect of (w) first, an amount equal to the
Series 2004-1 Monthly Interest for the Series 2004-1
Interest Period ending on the day preceding such succeeding Payment Date,
(x) second, an amount equal to the Fixed Rate Payments, if any, for the
next succeeding Payment Date, (y) third, an amount equal to the amount of
any unpaid Deficiency Amounts, as of the preceding Payment Date (together with
any accrued interest on such Deficiency Amounts) and (z) fourth, an amount
equal to the Insurer Fee for such Series 2004-1 Interest Period plus
any Insurer Reimbursement Amounts then due and owing.  On or before 10:00 a.m. (New York City time)
on the following Payment Date, the Trustee shall withdraw the amounts described
in the first sentence of this Section 2.03(b) from the Series 2004-1
Accrued Interest Account and deposit such amounts into the Series 2004-1
Distribution Account.

(c)  Lease Payment Deficit Notice.  On or before 10:00 a.m. (New York City time)
on each Payment Date, the Administrator shall notify the Trustee of the amount
of any Series 2004-1 Lease Payment Deficit, such notification to be
in the form of Exhibit C to this Series Supplement (each a “Lease Payment
Deficit Notice”).

(d)  Withdrawals from the Series 2004-1
Reserve Account.  If the
Administrator determines on any Payment Date that the amounts available from
the Series 2004-1 Accrued Interest Account are insufficient to pay
the sum of the amounts described in clauses (w), (x), (y) and (z) of
Section 2.03(b) of this Series Supplement on such Payment Date, the
Administrator shall instruct the Trustee in writing to withdraw from the
Series 2004-1 Reserve Account and deposit in the Series 2004-1
Distribution Account on such Payment Date an amount equal to the lesser of the
Series 2004-1 Available Reserve Account Amount and such
insufficiency.  The Trustee shall
withdraw such amount from the Series 2004-1 Reserve Account and
deposit such amount in the Series 2004-1 Distribution Account.  During the continuance of an Insurer Default,
no amounts in respect of the Insurer Fee shall be withdrawn from the
Series 2004-1 Reserve Account.

 48
 

(e)  Draws on Series 2004-1 Letters
of Credit.  (X) If the Administrator
determines on any Payment Date that there exists a Series 2004-1
Lease Interest Payment Deficit, the Administrator shall instruct the Trustee in
writing to draw on the Series 2004-1 Non-Ford Letters of Credit, if
any, and, upon receipt of such notice by the Trustee on or prior to 10:30 a.m.
(New York City time) on such Payment Date, the Trustee shall, by 12:00 p.m.
(New York City time) on such Payment Date draw an amount, as set forth in such
notice, equal to the least of (i) such Series 2004-1 Lease
Interest Payment Deficit, (ii) the excess, if any, of the sum of the
amounts described in clauses (w), (x), (y) and (z) of Section 2.03(b)
above on such Payment Date over the amounts available from the Series 2004-1
Accrued Interest Account plus the amount withdrawn from the Series 2004-1
Reserve Account pursuant to Section 2.03(d) of this Series Supplement on
such Payment Date and (iii) the Series 2004-1 Non-Ford Letter
of Credit Liquidity Amount on the Series 2004-1 Non-Ford Letters of
Credit by presenting to each Series 2004-1 Non-Ford Letter of Credit
Provider a draft accompanied by a Certificate of Credit Demand and shall cause
the LOC Credit Disbursements to be deposited in the Series 2004-1
Distribution Account on such Payment Date; provided, however that if the Series 2004-1
Non-Ford Cash Collateral Account has been established and funded, the Trustee
shall withdraw from the Series 2004-1 Non-Ford Cash Collateral
Account and deposit in the Series 2004-1 Distribution Account an
amount equal to the lesser of (x) the Series 2004-1 Non-Ford Cash
Collateral Percentage on such Payment Date of the least of the amounts
described in clauses (i), (ii) or (iii) above and (y) the
Series 2004-1 Available Non-Ford Cash Collateral Account Amount on
such Payment Date and draw an amount equal to the remainder of such amount on
the Series 2004-1 Non-Ford Letters of Credit.  During the continuance of an Insurer Default,
no amounts in respect of the Insurer Fee shall be drawn on the Series 2004-1
Non-Ford Letters of Credit or withdrawn from the Series 2004-1
Non-Ford Cash Collateral Account.

(Y) If the Administrator
determines on any Payment Date that the sum of the amounts described in clauses
(w), (x), (y) and (z) of Section 2.03(b) of this Series Supplement on
such Payment Date exceeds the sum of the amounts available from the Series
2004-1 Accrued Interest Account, the amount withdrawn from the Series 2004-1
Reserve Account pursuant to Section 2.03(d) of this Series Supplement
plus the amounts to be drawn on the Series 2004-1 Non-Ford Letters of Credit
(and/or withdrawn from the Series 2004-1 Non-Ford Cash Collateral Account)
pursuant to clause (X) above on such Payment Date, the Administrator
shall instruct the Trustee in writing to draw on the Series 2004-1 Ford Letters
of Credit, if any, and, upon receipt of such notice by the Trustee on or prior
to 10:30 a.m. (New York City time) on such Payment Date, the Trustee shall, by
12:00 p.m. (New York City time) on such Payment Date draw an amount, as set
forth in such notice, equal to the lesser of (i) the excess, if any, of the sum
of the amounts described in clauses (w), (x), (y) and (z) of Section 2.03(b)
of this Series Supplement on such Payment Date over the amounts available from
the Series 2004-1 Accrued Interest Account plus the amount withdrawn from the
Series 2004-1 Reserve Account pursuant to Section 2.03(d) of this Series
Supplement on such Payment Date plus the amounts to be drawn on the Series
2004-1 Non-Ford Letters of Credit (and/or

 49
 

withdrawn from the
Series 2004-1 Non-Ford Cash Collateral Account) pursuant to clause (X)
above on such Payment Date and (ii) the Series 2004-1 Ford Letter of Credit
Liquidity Amount on the Series 2004-1 Ford Letters of Credit by presenting to
each Series 2004-1 Ford Letter of Credit Provider a draft accompanied by a Certificate
of Credit Demand and shall cause the LOC Credit Disbursements to be deposited
in the Series 2004-1 Distribution Account on such Payment Date; provided,
however that if the Series 2004-1 Ford Cash Collateral Account has been
established and funded, the Trustee shall withdraw from the Series 2004-1 Ford
Cash Collateral Account and deposit in the Series 2004-1 Distribution Account
an amount equal to the lesser of (x) the Series 2004-1 Ford Cash Collateral
Percentage on such Payment Date of the lesser of the amounts described in clauses (i) and (ii)
above and (y) the Series 2004-1 Available Ford Cash Collateral Account Amount
on such Payment Date and draw an amount equal to the remainder of such amount
on the Series 2004-1 Ford Letters of Credit. 
During the continuance of an Insurer Default, no amounts in respect of
the Insurer Fee shall be drawn on the Series 2004-1 Ford Letters of Credit or
withdrawn from the Series 2004-1 Ford Cash Collateral Account.

(f)  Insurance Policy.  If the Administrator determines on any
Payment Date that the sum of the amounts available from the Series 2004-1
Accrued Interest Account plus the amount, if any, to be withdrawn from the
Series 2004-1 Reserve Account pursuant to Section 2.03(d) of
this Series Supplement plus the amount, if any, to be drawn under the
Series 2004-1 Letters of Credit and/or withdrawn from the
Series 2004-1 Cash Collateral Account pursuant to
Section 2.03(e) of this Series Supplement is insufficient to pay the
Series 2004-1 Adjusted Monthly Interest for such Payment Date, the
Administrator shall instruct the Trustee in writing to make a demand on the
Insurance Policy and, upon receipt of such notice by the Trustee on or prior to
11:00 a.m. (New York City time) on such Payment Date, the Trustee shall, by
12:00 noon (New York City time) on such Payment Date, make a demand on the
Insurance Policy 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 2004-1 Distribution Account.

(g)  Deficiency Amounts.  If the amounts described in Sections 2.03(b),
(c), (d),  (e) and (f) of this Series
Supplement are insufficient to pay the Series 2004-1 Adjusted
Monthly Interest for any Payment Date, payments of interest to the Series 2004-1
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 Payment Date allocable to the Class A-1
Notes shall be referred to as the “Class A-1 Deficiency Amount”,
the aggregate amount, if any, of such deficiency on any Payment Date allocable
to the Class A-2 Notes shall be referred to as the “Class A-2
Deficiency Amount”, the aggregate amount, if any, of such deficiency on any
Payment Date allocable to the Class A-3 Notes shall be referred to
as the “Class A-3 Deficiency Amount” and the aggregate
amount, if any, of such deficiency on any Payment Date allocable to the
Class A-4 Notes shall be referred to as the “Class A-4
Deficiency

 50
 

Amount”.  Interest shall accrue on the Deficiency
Amount for each Class of Series 2004-1 Notes at the applicable
Series 2004-1 Note Rate.

(h)  Balance.  On the fourth Business Day prior to each
Payment Date, the Administrator shall instruct the Trustee in writing pursuant
to the Administration Agreement to pay, on such Payment Date, the balance
(after making the payments required in Section 2.04 of this Series
Supplement), if any, of the amounts available from the Series 2004-1
Accrued Interest Account plus the amount, if any, withdrawn from the
Series 2004-1 Reserve Account pursuant to Section 2.03(d) of
this Series Supplement plus the amount, if any, drawn under the
Series 2004-1 Letters of Credit and/or withdrawn from the
Series 2004-1 Cash Collateral Account pursuant to
Section 2.03(e) of this Series Supplement as follows:

(i) first, to any Interest Rate Hedge
Provider, in an amount equal to the portion, if any, of the Fixed Rate Payments
for such Payment Date payable to such Interest Rate Hedge Provider;

(ii) second, to the Insurer, in an
amount equal to the sum of (x) the Insurer Fee for the Series 2004-1
Interest Period ending on the day preceding such Payment Date and (y) any
other Insurer Reimbursement Amounts then due and payable to the Insurer
(excluding therefrom any amounts included in Series 2004-1 Monthly
Interest for such Series 2004-1 Interest Period); provided that during the continuance of an
Insurer Default, no amounts in respect of the Insurer Fee shall be paid with
the proceeds of a draw on a Series 2004-1 Letter of Credit or a withdrawal from
a Series 2004-1 Cash Collateral Account;

(iii) third, to the Administrator, in
an amount equal to the Series 2004-1 Percentage as of the beginning
of the Series 2004-1 Interest Period ending on the day preceding
such Payment Date of the Monthly Administration Fee for such Series 2004-1
Interest Period;

(iv) fourth, to the Trustee, in an
amount equal to the Series 2004-1 Percentage as of the beginning of
the Series 2004-1 Interest Period ending on the day preceding such
Payment Date of the Trustee’s fees for such Series 2004-1 Interest
Period;

(v) fifth, to pay any Indenture
Carrying Charges (other than Indenture Carrying Charges provided for above) to
the Persons to whom such amounts are owed, in an amount equal to the
Series 2004-1 Percentage as of the beginning of the Series 2004-1
Interest Period ending on the day preceding such Payment Date of such Indenture
Carrying Charges (other than Indenture Carrying Charges provided for above) for
such Series 2004-1 Interest Period; and

(vi) sixth, the balance, if any, shall
be withdrawn from the Series 2004-1 Accrued Interest Account by the
Trustee and (A) during the Series 2004-1

 51
 

Revolving Period, deposited into the Series 2004-1 Excess
Collection Account or (B) during the Series 2004-1 Controlled
Amortization Period or the Series 2004-1 Rapid Amortization Period,
(I) so long as the Series 2004-1 Principal Amount is greater
than the Monthly Total Principal Allocation for the Related Month, deposited
into the Series 2004-1 Collection Account and treated as Principal
Collections and (II) if the Series 2004-1 Principal Amount is
zero or less than the Monthly Total Principal Allocation for the Related Month,
paid to any Interest Rate Hedge Provider in respect of any amounts owing
pursuant to its Series 2004-1 Interest Rate Hedge, other than any
Fixed Rate Payment.

(i)  Trustee Fees.  If, on any Payment Date after the occurrence
and during the continuance of a Liquidation Event of Default or a
Series 2004-1 Limited Liquidation Event of Default, (x) the
funds available to pay the Trustee fees pursuant to Section 2.03(h)(iv) of
this Series Supplement on such Payment Date are less than the amount payable to
the Trustee thereunder on such Payment Date or (y) the funds available to
pay the portion of the Indenture Carrying Charges payable to the Trustee
pursuant to Section 2.03(h)(v) of this Series Supplement on such Payment
Date are less than the amount payable to the Trustee thereunder on such Payment
Date, the Administrator shall instruct the Trustee in writing to withdraw from
the Series 2004-1 Reserve Account and pay to itself on such Payment
Date an amount equal to the least of (A) the Series 2004-1
Available Reserve Account Amount on such Payment Date (after giving effect to
all other withdrawals therefrom pursuant to this Series Supplement on such
Payment Date), (B) an amount equal to the excess, if any, of (i) 1.1%
of the Series 2004-1 Required Asset Amount as of the date of the
occurrence of such Liquidation Event of Default or Series 2004-1
Limited Liquidation Event of Default over (ii) the aggregate of the
amounts previously withdrawn from the Series 2004-1 Reserve Account
under this Sections 2.03(i) in respect of fees and other amounts due and
owing to the Trustee and (C) such insufficiency.  The Trustee shall withdraw such amount from
the Series 2004-1 Reserve Account and pay or reimburse itself.

(j)  Listing Information Requirement.  Until the Administrator shall give the
Trustee written notice that the Class A-1 Notes are not listed on
the Luxembourg Stock Exchange, the Trustee shall, or shall instruct the Paying
Agent to, cause the Class A-1 Note Rate for the next succeeding
Series 2004-1 Interest Period, the number of days in such
Series 2004-1 Interest Period, the Payment Date for such
Series 2004-1 Interest Period and the amount of interest payable on
the Class A-1 Notes on such Payment Date to be (A) communicated
to DTC, 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) notify the Luxembourg Stock Exchange if,
based solely on the information contained in the Monthly Noteholders’
Statement, the amount of interest to be paid on the Class A-1 Notes
on any Payment Date is less than the amount payable thereon on such Payment
Date, the amount of such deficit and the amount of interest that will accrue on
such deficit during the next succeeding Series 2004-1 Interest
Period by the Business Day

 52
 

prior to such Payment Date.  So long as the Class A-1 Notes are
listed on the Luxembourg Stock Exchange and the rules of that stock exchange so
require, notices to Class A-1 Noteholders will be published in a
leading newspaper having general circulation in Luxembourg (which is expected
to be the Luxemburger Wort), it being
understood that the term “notices” as it is used in this clause shall not
include communications of the Class A-1 Note Rate.  Upon HVF’s request, and at HVF’s expense, the
Trustee shall cause the Paying Agent in Luxembourg to publish such notice.

SECTION
2.04.  Payment of Note Interest.  On each Payment Date, the Trustee shall, in
accordance with Section 6.01 of the Base Indenture, pay to the Series 2004-1
Noteholders from the Series 2004-1 Distribution Account the amount
deposited in the Series 2004-1 Distribution Account for the payment
of interest pursuant to Section 2.03 of this Series Supplement.

SECTION
2.05.  Payment of Note Principal.  (a)  Monthly
Payments During Series 2004-1 Controlled Amortization Period or
Series 2004-1 Rapid Amortization Period.  Commencing on the second Determination Date
during the Three-Year Notes Controlled Amortization Period or the first
Determination Date after the commencement of the Series 2004-1 Rapid
Amortization Period and on each Determination Date thereafter, the
Administrator shall instruct the Trustee in writing pursuant to the
Administration Agreement as to (i) the amount allocated to the
Series 2004-1 Notes during the Related Month pursuant to
Section 2.02(b)(ii) or (c)(ii) of this Series Supplement, as the
case may be, (ii) any amounts to be withdrawn from the Series 2004-1
Reserve Account and deposited into the Series 2004-1 Distribution
Account, (iii) any amounts to be drawn on the Series 2004-1
Letters of Credit (or withdrawn from the Series 2004-1 Cash
Collateral Account), (iv) the amount of proceeds received in respect of a
demand made under the Series 2004-1 Demand Note and (v) the amount of any
demand on the Insurance Policy in accordance with the terms thereof.  On the Payment Date following each such
Determination Date, the Trustee shall withdraw the amount allocated to the
Series 2004-1 Notes of each Class during the Related Month pursuant
to Section 2.02(b)(ii) or (c)(ii) of this Series Supplement, as
the case may be, from the Series 2004-1 Collection Account and
deposit such amount, together with the proceeds of any demand on the Series
2004-1 Demand Note received during the period from and excluding the
immediately preceding Payment Date to and including such Payment Date into the
Series 2004-1 Distribution Account which amount shall be paid (x) first,
to the Series 2004-1 Noteholders holding such Class of
Series 2004-1 Notes and (y) second, once the Series
2004-1 Notes have been paid in full, to Ford all unpaid Ford Reimbursement
Obligations; provided, however, that with respect to the Three-Year Notes Legal Final
Payment Date and the Class A-3 Legal Final Payment Date, the Trustee shall
withdraw from the Series 2004-1 Collection Account an amount which
is no greater than the sum of the Class A-1 Principal Amount and the Class A-2
Principal Amount, or Class A-3 Principal Amount, as the case may be, as of the
end of the day on the immediately preceding day.

 53
 

(b)  Principal Deficit Amount.  If the Principal Deficit Amount is greater
than zero on any date, the Administrator shall promptly provide written notice
thereof to the Insurer and the Trustee. 
On each Payment Date on which the Principal Deficit Amount is greater
than zero, amounts shall be transferred to the Series 2004-1
Distribution Account as follows:

(i) Reserve Account Withdrawal.  On each Payment Date on which the Principal
Deficit Amount is greater than zero, the Administrator shall instruct the
Trustee in writing prior to 12:00 noon (New York City time) on such Payment
Date, in the case of a Principal Deficit Amount resulting from a
Series 2004-1 Lease Payment Deficit, or prior to 12:00 noon (New
York City time) on the second Business Day prior to such Payment Date, in the
case of any other Principal Deficit Amount, to withdraw from the
Series 2004-1 Reserve Account, an amount equal to the lesser of
(x) the Series 2004-1 Available Reserve Account Amount (after
giving effect to any withdrawals from the Series 2004-1 Reserve
Account on such Payment Date pursuant to Section 2.03(d) of this Series
Supplement) and (y) such Principal Deficit Amount on such Payment Date and
deposit it in the Series 2004-1 Distribution Account on such Payment
Date.

(ii) Principal Draws on Series 2004-1
Letters of Credit.  If the
Administrator determines on any Payment Date, that the Principal Deficit Amount
on such Payment Date, after giving effect to the distribution of amounts to be
deposited in the Series 2004-1 Distribution Account in accordance with clause
(i) of Section 2.05(b) on such Payment Date, will be greater than
zero (A) in the case of a Payment Date that is not a Legal Final Payment Date,
the Administrator shall instruct the Trustee in writing to draw on:

(X) the Series 2004-1
Non-Ford Letters of Credit, if any, to the extent that on such Payment Date
there exists a Series 2004-1 Lease Principal Payment Deficit, in an amount
equal to the lesser of:

(1) the Series 2004-1 Lease
Principal Payment Deficit;

(2) the amount by which the Principal Deficit
Amount on such Payment Date exceeds the sum of the amount to be deposited in
the Series 2004-1 Distribution Account in accordance with
clause (i) of this Section 2.05(b) and the amount, if any, paid under
the Series 2004-1 Demand Note in respect of such Principal Deficit Amount on
such Payment Date; and

(3) the Series 2004-1 Non-Ford
Letter of Credit Liquidity Amount (after giving effect to any drawings on the
Series 2004-1 Non-Ford Letters of Credit on such Payment Date
pursuant to Section 2.03(e)(X) of this Series Supplement);

 54
 

(Y) the Series 2004-1
Ford Letters of Credit, if any, in an amount equal to the lesser of:

(1) the amount by which
the Principal Deficit Amount on such Payment Date exceeds the sum of the amount to be deposited
in the Series 2004-1 Distribution Account in accordance with Section
2.05(b)(i) of this Series Supplement, and the amounts to be drawn on the
Series 2004-1 Non-Ford Letters of Credit pursuant to clause (X) above
and Section 2.12(d) of the Series Supplement, on such Payment Date, and

(2) the Series 2004-1
Ford Letter of Credit Liquidity Amount (after giving effect to any drawings on
the Series 2004-1 Ford Letters of Credit on such Payment Date pursuant to Section
2.03(e)(Y) of this Series Supplement);

(B) in the case of the Three-Year Notes Legal
Final Payment Date:

(X) the Series 2004-1
Non-Ford Letters of Credit, if any, to the extent that on the Three-Year Notes
Legal Final Payment Date there exists a Series 2004-1 Lease Principal Payment
Deficit, in an amount equal to the lesser of:

(1) the Series 2004-1 Lease
Principal Payment Deficit;

(2) the amount, if any, by which the
Series 2004-1 Liquidity Amount (after giving effect to any
withdrawals from the Series 2004-1 Reserve Account pursuant to
Section 2.03(d) and Section 2.5(b)(i) of this Series Supplement
and any drawings under the Series 2004-1 Letters of Credit pursuant
to Section 2.03(e) of this Series Supplement on the Three-Year Notes Legal
Final Payment Date) will exceed the Series 2004-1 Required Liquidity
Amount (after giving effect to all anticipated reductions in the
Series 2004-1 Principal Amount on the Three-Year Notes Legal Final
Payment Date); and

(3) the Series 2004-1 Non-Ford
Letter of Credit Liquidity Amount (after giving effect to any drawings on the
Series 2004-1 Non-Ford Letters of Credit on the Three-Year Notes
Legal Final Payment Date pursuant to Section 2.03(e)(X) of this Series
Supplement);

(Y) the Series 2004-1
Ford Letters of Credit, if any, in an amount equal to the lesser of:

(1) the Series 2004-1
Ford Letter of Credit Liquidity Amount (after giving effect to any draws to be
made on the Series 2004-1 Ford Letters of Credit on the Three-Year Notes Legal
Final Payment Date pursuant to Section 2.03(e)(Y) of this Series
Supplement), and

 55
 

(2) the sum of (Aa) the
amount by which the Principal Deficit Amount on the Three-Year Notes Legal Final Payment
Date exceeds the sum of the amount
to be deposited in the Series 2004-1 Distribution Account in accordance with Section
2.05(b)(i) of this Series Supplement and the amounts to be drawn on the
Series 2004-1 Non-Ford Letters of Credit pursuant to clause (X) above,
each on such Three-Year Notes Legal Final Payment Date, and the amounts to be drawn on the Series 2004-1 Non-Ford
Letters of Credit pursuant to Section 2.12(d) of this Series Supplement,
on the Business Day immediately preceding such Three-Year Notes Legal Final
Payment Date, and (Ab) the lesser
of (x) the amount by which the Series 2004-1 Liquidity Amount (after giving
effect to any withdrawals to be made from the Series 2004-1 Reserve Account
pursuant to Section 2.03(d) and Section 2.05(b)(i) of this Series
Supplement and any drawings to be made under the Series 2004-1 Letters of
Credit pursuant to Section 2.03(e) of this Series Supplement on the
Three-Year Notes Legal Final Payment Date) will exceed the Series 2004-1
Required Liquidity Amount (after giving effect to all anticipated reductions in
the Series 2004-1 Principal Amount on the Three-Year Notes Legal Final Payment
Date) and (y) an amount equal to the excess, if any, of (a) the Series 2004-1
Required Liquidity Amount on the earlier of (i) the date of the first
occurrence of a Series 2004-1 Lease Interest Payment Deficit (other than any
Series 2004-1 Lease Interest Payment Deficit resulting from a failure to pay
Rent or any other amount payable by the Lessee under the HVF Lease that is
cured in full on or prior to the fifth Business Day after the occurrence of
such failure) and (ii) the Three-Year Notes Legal Final Payment Date over (b)
the aggregate amount, as of the Three-Year Notes Legal Final Payment Date, of
all withdrawals from the Series 2004-1 Reserve Account made since the date set
forth in clause (2)(Ab)(y)(a)
of this Section 2.05(b)(ii)(B)(Y)
or to be made in respect of the Three-Year Notes Legal Final Payment Date
pursuant to Section 2.03(d)(i) of this Series Supplement and all
drawings made since such date or to be made in respect of the Three-Year Notes
Legal Final Payment Date under the Series 2004-1 Letters of Credit pursuant to Section
2.03(e) of this Series Supplement; provided, however, that
any such withdrawals from the Series 2004-1 Reserve Account and/or drawings
made under the Series 2004-1 Letters of Credit on account of a Series 2004-1
Lease Interest Payment Deficit resulting from a failure to pay Rent or other
amount payable by the Lessee under the HVF Lease that is cured in full on or
prior to the fifth Business Day after the occurrence of such failure shall be
excluded from this clause (b);

(C) in the case of the Class A-3
Legal Final Payment Date:

(X) the Series 2004-1 Non-Ford Letters of Credit, if any, to
the extent that on the Class A-3 Notes Legal Final Payment Date there exists a
Series 2004-1 Lease Principal Payment Deficit in an amount equal to the least
of:

(1) the Series 2004-1 Lease Principal
Payment Deficit;

(2) the amount, if any, by which the
Series 2004-1 Liquidity Amount (after giving effect to any
withdrawals from the Series 2004-1 Reserve

 56
 

Account pursuant to Section 2.03(d) and
Section 2.05(b)(i) of this Series Supplement and any drawings under
the Series 2004-1 Letters of Credit pursuant to Section 2.03(e)
of this Series Supplement on the Class A-3 Legal Final Payment Date)
will exceed the Series 2004-1 Required Liquidity Amount (after
giving effect to all anticipated reductions in the Series 2004-1
Principal Amount on the Class A-3 Legal Final Payment Date); and

(3) the Series 2004-1 Non-Ford
Letter of Credit Liquidity Amount (after giving effect to any drawings on the
Series 2004-1 Non-Ford Letters of Credit on the Class A-3
Legal Final Payment Date pursuant to Section 2.03(e)(X) of this
Series Supplement);

(Y) the Series 2004-1 Ford Letters of Credit, if any, in an
amount equal to the lesser of:

(1) the Series 2004-1 Ford Letter
of Credit Liquidity Amount (after giving effect to any draws to be made on the
Series 2004-1 Ford Letters of Credit on the Class A-3 Legal Final
Payment Date pursuant to Section 2.03(e)(Y) of this Series Supplement);
and

(2) the sum of (Aa) the amount by which the
Principal Deficit Amount on the Class A-3 Legal Final Payment Date exceeds the sum of the amount to be deposited in
the Series 2004-1 Distribution Account in accordance with Section 2.05(b)(i)
of this Series Supplement and the amounts to be drawn on the Series 2004-1
Non-Ford Letters of Credit pursuant to clause (X) above, each on such
Class A-3 Legal Final Payment Date, and
the amounts to be drawn on the Series 2004-1 Non-Ford Letters of Credit
pursuant to Section 2.12(d) of this Series Supplement, on the Business
Day immediately preceding such Class A-3 Legal Final Payment Date, and (Ab) the lesser of (x) the amount by
which the Series 2004-1 Liquidity Amount (after giving effect to any
withdrawals to be made from the Series 2004-1 Reserve Account pursuant to Section
2.03(d) and Section 2.05(b)(i) of this Series Supplement and any
drawings to be made under the Series 2004-1 Letters of Credit pursuant to Section
2.03(e) of this Series Supplement on the Class A-3 Legal Final Payment
Date) will exceed the Series 2004-1 Required Liquidity Amount (after giving
effect to all anticipated reductions in the Series 2004-1 Principal Amount on
the Class A-3 Legal Final Payment Date) and (y) an amount equal to the excess,
if any, of (a) the Series 2004-1 Required Liquidity Amount on the earlier of
(i) the date of the first occurrence of a Series 2004-1 Lease Interest Payment
Deficit (other than any Series 2004-1 Lease Interest Payment Deficit resulting
from a failure to pay Rent or any other amount payable by the Lessee under the
HVF Lease that is cured in full on or prior

 57
 

to the fifth Business Day after the occurrence of such failure) and
(ii) the Class A-3 Legal Final Payment Date over (b) the aggregate amount, as
of the Class A-3 Legal Final Payment Date, of all withdrawals from the Series
2004-1 Reserve Account made since the date set forth in clause (2)(Ab)(y)(a) of this Section 2.05(b)(ii)(C)(Y) or to
be made in respect of the Class A-3 Legal Final Payment Date pursuant to Section
2.03(d)(i) of this Series Supplement and all drawings made since such date
or to be made in respect of the Class A-3 Legal Final Payment Date under the
Series 2004-1 Letters of Credit pursuant to Section 2.03(e) of this
Series Supplement; provided, however, that any such withdrawals
from the Series 2004-1 Reserve Account and/or drawings made under the Series
2004-1 Letters of Credit on account of a Series 2004-1 Lease Interest Payment
Deficit resulting from a failure to pay Rent or other amount payable by the
Lessee under the HVF Lease that is cured in full on or prior to the fifth Business
Day after the occurrence of such failure shall be excluded from this clause
(b);

(D) in the case of the Class A-4
Legal Final Payment Date:

(X) the Series 2004-1 Non-Ford Letters of Credit, if any, to
the extent that on the Class A-4 Notes Legal Final Payment Date there exists a
Series 2004-1 Lease Principal Payment Deficit in an amount equal to the lesser
of:

(1) the Series 2004-1 Lease
Principal Payment Deficit; and

(2) the Series 2004-1 Non-Ford
Letter of Credit Liquidity Amount (after giving effect to any drawings on the
Series 2004-1 Non-Ford Letters of Credit on the Class A-4
Legal Final Payment Date pursuant to Section 2.03(e)(X) of this
Series Supplement).

(Y) the Series 2004-1 Ford Letters of Credit, if any,
in an amount equal to the lesser of:

(1)           the Series 2004-1 Ford Letter of
Credit Liquidity Amount (after giving effect to any draws to be made on the
Series 2004-1 Ford         Letters of
Credit on the Class A-4 Notes Legal Final Payment Date pursuant to Section
2.3(e)(Y) of this Series Supplement), and

(2) the sum of (Aa) the amount by which the Principal
Deficit Amount on the Class
A-4 Legal Final Payment Date exceeds the sum of the amount to be deposited in the Series 2004-1
Distribution Account in accordance with Section 2.05(b)(i) of this Series
Supplement and the amounts to be drawn on the Series 2004-1 Non-Ford Letters of
Credit pursuant to clause (X) above, each on such Class A-4 Legal Final
Payment Date, and the amounts
to be drawn on the Series 2004-1 Non-Ford Letters of Credit pursuant to Section
2.12(d) of this Series

 58
 

Supplement, on the Business Day immediately preceding
such Class A-4 Legal Final Payment Date, and (Ab) an amount equal to the excess, if any, of
(x) the Series 2004-1 Required Liquidity Amount on the earlier of (I) the date
of the first occurrence of a Series 2004-1 Lease Interest Payment Deficit
(other than any Series 2004-1 Lease Interest Payment Deficit resulting
from a failure to pay Rent or any other amount payable by the Lessee under the
HVF Lease that is cured in full on or prior to the fifth Business Day after the
occurrence of such failure) and (ii) the Class A-4 Legal Final Payment Date
over (y) the aggregate amount, as of the Class A-4 Legal Final Payment Date, of
all withdrawals from the Series 2004-1 Reserve Account made since the date set
forth in clause (2)(Ab)(x)
of this Section 2.05(b)(ii)(D)(Y)
or to be made in respect of the Class A-4 Legal Final Payment Date pursuant to Section
2.03(d)(i) of this Series Supplement and all drawings made since such date
or to be made in respect of the Class A-4 Legal Final Payment Date under the
Series 2004-1 Letters of Credit pursuant to Section 2.03(e) of this
Series Supplement; provided, however, that any such withdrawals
from the Series 2004-1 Reserve Account and/or drawings made under the Series
2004-1 Letters of Credit on account of a Series 2004-1 Lease Interest Payment
Deficit resulting from a failure to pay Rent or other amount payable by the
Lessee under the HVF Lease that is cured in full on or prior to the fifth Business
Day after the occurrence of such failure shall be excluded from this clause
(y);

Upon receipt of a notice
by the Trustee from the Administrator in respect of a Principal Deficit Amount
on or prior to 10:30 a.m. (New York City time) on a Payment Date, the Trustee
shall, by 12:00 p.m. (New York City time) on such Payment Date draw an amount
as set forth in such notice equal to the applicable amount set forth above on:

(X) the Series 2004-1
Non-Ford Letters of Credit by presenting to each Series 2004-1
Non-Ford Letter of Credit Provider a draft accompanied by a Certificate of
Credit Demand and shall cause the LOC Credit Disbursements to be deposited in
the Series 2004-1 Distribution Account on such Payment Date; provided,
however, that if the Series 2004-1 Non-Ford Cash Collateral
Account has been established and funded, the Trustee shall withdraw from the
Series 2004-1 Non-Ford Cash Collateral Account and deposit in the
Series 2004-1 Distribution Account an amount equal to the lesser of
(x) the Series 2004-1 Non-Ford Cash Collateral Percentage on such
Payment Date of the amount set forth in the notice provided to the Trustee by
the Administrator and (y) the Series 2004-1 Available Non-Ford Cash
Collateral Account Amount on such Payment Date and draw an amount equal to the
remainder of such amount on the Series 2004-1 Non-Ford Letters of
Credit.

(Y) the Series 2004-1
Ford Letters of Credit by presenting to each Series 2004-1 Ford Letter of
Credit Provider a draft accompanied by a Certificate of Credit Demand and shall
cause the LOC Credit Disbursements to be deposited in the Series 2004-1
Distribution Account on such Payment Date; provided, however, that if the
Series 2004-1 Ford Cash Collateral Account has been established and funded, the
Trustee shall withdraw from the

 59
 

Series 2004-1 Ford Cash
Collateral Account and deposit in the Series 2004-1 Distribution Account an
amount equal to the lesser of (x) the Series 2004-1 Ford Cash Collateral
Percentage on such Payment Date of the amount set forth in the notice provided
to the Trustee by the Administrator and (y) the Series 2004-1 Available Ford
Cash Collateral Account Amount on such Payment Date and draw an amount equal to
the remainder of such amount on the Series 2004-1 Ford Letters of Credit.

(iii) Demand on Insurance Policy.  If the sum of the Series 2004-1
Letter of Credit Amount and the Series 2004-1 Available Reserve
Account Amount on any Payment Date on which the Principal Deficit Amount will
be greater than zero will be less than such Principal Deficit Amount, the
Trustee shall make a demand on the Insurance Policy by 12:00 noon (New York
City time) on the second Business Day preceding such Payment Date in an amount
equal to the Insured Principal Deficit Amount and shall cause the proceeds
thereof to be deposited in the Series 2004-1 Distribution Account.

(c)  Legal Final Payment Dates.  The Class A-1 Principal Amount and
the Class A-2 Principal Amount shall be due and payable on the
Three-Year Notes Legal Final Payment Date. 
If the amount to be deposited in the Series 2004-1
Distribution Account in accordance with Section 2.05(a) of this Series
Supplement with respect to the Three-Year Notes Legal Final Payment Date
together with any amounts to be deposited therein in accordance
Section 2.05(b) of this Series Supplement on the Three-Year Notes Legal
Final Payment Date is less than the sum of the Class A-1 Outstanding
Principal Amount and the Class A-2 Outstanding Principal Amount on
the Three-Year Notes Legal Final Payment Date, prior to 10:00 a.m. (New York
City time) on the second Business Day prior to the Three-Year Notes Legal Final
Payment Date, the Administrator shall instruct the Trustee to withdraw from the
Series 2004-1 Reserve Account, an amount equal to the least of
(i) the Series 2004-1 Available Reserve Account Amount (after
giving effect to any withdrawals from the Series 2004-1 Reserve
Account pursuant to Section 2.03(d) and Section 2.05(b)(i) of
this Series Supplement), (ii) the amount by which the Series 2004-1
Liquidity Amount (after giving effect to any withdrawals from the
Series 2004-1 Reserve Account pursuant to Section 2.03(d) and
Section 2.05(b)(i) of this Series Supplement and any drawings under
the Series 2004-1 Letters of Credit pursuant to Section 2.03(e)
of this Series Supplement on the Three-Year Notes Legal Final Payment Date)
will exceed the Series 2004-1 Required Liquidity Amount (after
giving effect to all anticipated reductions in the Series 2004-1
Principal Amount on the Three-Year Notes Legal Final Payment Date) and (iii) such
insufficiency and deposit it in the Series 2004-1 Distribution
Account on the Three-Year Notes Legal Final Payment Date.  The Trustee shall withdraw such amount from
the Series 2004-1 Reserve Account and deposit such amount in the
Series 2004-1 Distribution Account on or prior to the Three-Year
Notes Legal Final Payment Date.  The
Class A-3 Principal Amount shall be due and payable on the
Class A-3 Legal Final Payment Date. 
If the amount to be deposited in the Series 2004-1
Distribution Account in accordance with Section 2.05(a) of this Series
Supplement with respect to the Class A-3 Legal Final Payment Date

 60
 

together with any amounts to be deposited
therein in accordance Section 2.05(b) of this Series Supplement on the
Class A-3 Legal Final Payment Date is less than the Class A-3
Outstanding Principal Amount on the Class A-3 Legal Final Payment
Date, prior to 10:00 a.m. (New York City time) on the second Business Day prior
to the Class A-3 Legal Final Payment Date, the Administrator shall
instruct the Trustee to withdraw from the Series 2004-1 Reserve
Account, an amount equal to the least of (i) the Series 2004-1
Available Reserve Account Amount, (after giving effect to any withdrawals from
the Series 2004-1 Reserve Account pursuant to Section 2.03(d)
and Section 2.05(b)(i) of this Series Supplement), (ii) the
amount by which the Series 2004-1 Liquidity Amount (after giving
effect to any withdrawals from the Series 2004-1 Reserve Account
pursuant to Section 2.03(d) and Section 2.05(b)(i) of this Series
Supplement and any drawings under the Series 2004-1 Letters of
Credit pursuant to Section 2.03(e) of this Series Supplement on the
Class A-3 Legal Final Payment Date) will exceed the Series 2004-1
Required Liquidity Amount (after giving effect to all anticipated reductions in
the Series 2004-1 Principal Amount on the Class A-3 Legal
Final Payment Date) and (iii) such insufficiency and deposit it in the
Series 2004-1 Distribution Account on the Class A-3 Legal
Final Payment Date.  The Trustee shall
withdraw such amount from the Series 2004-1 Reserve Account and
deposit such amount in the Series 2004-1 Distribution Account on or
prior to the Class A-3 Legal Final Payment Date.  The Class A-4 Principal Amount
shall be due and payable on the Class A-4 Legal Final Payment
Date.  If the amount to be deposited in
the Series 2004-1 Distribution Account in accordance with
Section 2.05(a) of this Series Supplement with respect to the Class A-4
Legal Final Payment Date together with any amounts to be deposited therein in
accordance Section 2.05(b) of this Series Supplement on the Class A-4
Legal Final Payment Date is less than the Class A-4 Outstanding
Principal Amount on the Class A-4 Legal Final Payment Date, prior to
10:00 a.m. (New York City time) on the second Business Day prior to the
Class A-4 Legal Final Payment Date, the Administrator shall instruct
the Trustee to withdraw from the Series 2004-1 Reserve Account, an
amount equal to the lesser of the Series 2004-1 Available Reserve
Account Amount (after giving effect to any withdrawals from the
Series 2004-1 Reserve Account pursuant to Section 2.03(d) and
Section 2.05(b)(i) of this Series Supplement) and such insufficiency
and deposit it in the Series 2004-1 Distribution Account on the
Class A-4 Legal Final Payment Date. 
The Trustee shall withdraw such amount from the Series 2004-1
Reserve Account and deposit such amount in the Series 2004-1
Distribution Account on or prior to the Class A-4 Legal Final
Payment Date.  If, after giving effect to
any such deposits into the Series 2004-1 Distribution Account, the
amount to be deposited in the Series 2004-1 Distribution Account
with respect to the Three-Year Notes Legal Final Payment Date, the Class A-3
Legal Final Payment Date or the Class A-4 Legal Final Payment Date,
as the case may be, is or will be less than the sum of the Class A-1
Outstanding Principal Amount and the Class A-2 Outstanding Principal
Amount, the Class A-3 Outstanding Principal Amount or the
Class A-4 Outstanding Principal Amount, as the case may be, the
Administrator shall instruct the Trustee in writing to make a demand on the
Insurance Policy on the second Business Day preceding such Legal Final Payment
Date and, upon receipt of such notice, the Trustee shall make a

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demand on the Insurance Policy on the second
Business Day preceding such Legal Final Payment 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 2004-1 Distribution Account.

(d)  Distribution.  On each Payment Date occurring on or after
the date a withdrawal is made pursuant to Section 2.05(a) of this Series
Supplement, the Trustee shall, in accordance with Section 6.01 of the Base
Indenture, pay (i) first, to the Series 2004-1 Noteholders of
each Class of Series 2004-1 Notes the amount deposited in the
Series 2004-1 Distribution Account for the payment of principal of
such Class of Series 2004-1 Notes pursuant to Section 2.05(a)
of this Series Supplement and any amounts deposited in the Series 2004-1
Distribution Account for the payment of principal of such Class of
Series 2004-1 Notes pursuant to Section 2.05(b) of this Series
Supplement and, to the extent necessary to pay the Class A-1
Outstanding Principal Amount and the Class A-2 Outstanding Principal
Amount on the Three-Year Notes Legal Final Payment Date, the Class A-3
Outstanding Principal Amount on the Class A-3 Legal Final Payment or
the Class A-4 Outstanding Principal Amount on the Class A-4
Legal Final Payment Date, amounts deposited in the Series 2004-1
Distribution Account pursuant to Section 2.05(c) of this Series Supplement
and (ii) second, once the Series 2004-1 Notes have been paid in full, to
Ford the amounts deposited in the Series 2004-1 Distribution Account for the
payment of all unpaid Ford Reimbursement Obligations pursuant to Section
2.05(a) of this Series Supplement.

SECTION
2.06.  The 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 or
any Series 2004-1 Series 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 or such
Series 2004-1 Series Account without such notice or instruction from
the Administrator, provided that the Administrator or, in the case of any
payment from a Series 2004-1 Series Account, the Insurer, upon
request of the Trustee or the Insurer, 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 at or prior to a specified time, the Administrator shall deliver any
applicable written instructions with respect thereto reasonably in advance of
such specified time.  If the
Administrator fails to give instructions to draw on the Series 2004-1
Letters of Credit required to be given by the Administrator, at the time
specified in this Series Supplement, the Trustee shall draw on the
Series 2004-1 Letters of Credit without such instruction from the
Administrator, provided that the Administrator or the Insurer, upon request of
the Trustee or the Insurer, promptly provides the Trustee with all information
necessary to allow the Trustee to draw on the Series 2004-1 Letters
of Credit.

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SECTION 2.07.  Reserve
Account.  (a)  Establishment of Series 2004-1
Reserve Account.  HVF shall establish and
maintain in the name of the Trustee for the benefit of the Series 2004-1
Noteholders, the Insurer and Ford an account (the “Series 2004-1
Reserve Account”), bearing a designation clearly indicating that the funds
deposited therein are held for the benefit of the Series 2004-1
Noteholders, the Insurer and Ford.  The
Series 2004-1 Reserve Account shall be an Eligible Deposit
Account.  If the Series 2004-1
Reserve Account is at any time no longer an Eligible Deposit Account, HVF
shall, within 10 Business Days of obtaining knowledge that the Series 2004-1
Reserve Account is no longer an Eligible Deposit Account, establish a new
Series 2004-1 Reserve Account that is an Eligible Deposit
Account.  If a new Series 2004-1
Reserve Account is established, HVF shall instruct the Trustee in writing to
transfer all cash and investments from the non-qualifying Series 2004-1
Reserve Account into the new Series 2004-1 Reserve Account.  Initially, the Series 2004-1
Reserve Account will be established with the Trustee.

(b)  Administration of the
Series 2004-1 Reserve Account. 
HVF may instruct (by standing instructions or otherwise) the institution
maintaining the Series 2004-1 Reserve Account to invest funds on
deposit in the Series 2004-1 Reserve Account from time to time in
Permitted Investments; provided, however, that any such investment shall
mature not later than the Business Day prior to the first Payment Date following
the date on which such funds were received, unless any Permitted Investment
held in the Series 2004-1 Reserve Account is held with the Trustee,
then such investment may mature on such Payment Date so long as such funds
shall be available for withdrawal on or prior to such Payment Date.  HVF 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 initial
purchase price of such Permitted Investment. 
In the absence of written investment instructions hereunder, funds on
deposit in the Series 2004-1 Reserve Account shall remain
uninvested.

(c)  Earnings from
Series 2004-1 Reserve Account. 
All interest and earnings (net of losses and investment expenses) paid
on funds on deposit in the Series 2004-1 Reserve Account shall be
deemed to be on deposit therein and available for distribution.

(d)  Series 2004-1
Reserve Account Constitutes Additional Collateral for Series 2004-1
Notes.  In order to secure and
provide for the repayment and payment of the Note Obligations with respect to
the Series 2004-1 Notes, HVF hereby grants a security interest in
and assigns, pledges, grants, transfers and sets over to the Trustee, for the
benefit of the Series 2004-1 Noteholders, the Insurer and Ford all
of HVF’s right, title and interest in and to the following (whether now or
hereafter existing or acquired): 
(i) the Series 2004-1 Reserve Account, including any
security entitlement thereto; (ii) all funds on deposit therein from time
to time; (iii) all certificates and instruments, if any, representing or
evidencing any or all of the Series 2004-1 Reserve Account or the
funds on deposit therein from time to time; (iv) all investments made at
any time and from time

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to time with
monies in the Series 2004-1 Reserve Account, whether constituting
securities, instruments, general intangibles, investment property, financial
assets or other property; (v) all interest, dividends, cash, instruments
and other property from time to time received, receivable or otherwise
distributed in respect of or in exchange for the Series 2004-1
Reserve Account, the funds on deposit therein from time to time or the
investments made with such funds; and (vi) all proceeds of any and all of
the foregoing, including, without limitation, cash (the items in the foregoing
clauses (i) through (vi) are referred to, collectively, as the “Series 2004-1
Reserve Account Collateral”).

(e)  Series 2004-1
Reserve Account Surplus.  In the event
that the Series 2004-1 Reserve Account Surplus on any Payment Date
is greater than zero, the Trustee, acting in accordance with the written
instructions of the Administrator (with a copy to the Insurer), shall withdraw
from the Series 2004-1 Reserve Account an amount equal to the
Series 2004-1 Reserve Account Surplus and (i) pay to Ford the lesser
of (x) such Series 2004-1 Reserve Account Surplus and (y) all unpaid Ford
Reimbursement Obligations and (ii) for so long as the Ford LOC Exposure
Amount is greater than zero, solely to the extent that after giving effect to
any such payment, the Fleet Equity Condition would be satisfied, pay to HVF any
portion of such Series 2004-1 Reserve Account Surplus remaining after any
required payment pursuant to clause (i) above.

(f)  Termination of
Series 2004-1 Reserve Account. 
On or after the date on which the Series 2004-1 Notes are
fully paid, the Insurer has been paid all Insurer Fees and all other Insurer
Reimbursement Amounts due, and Ford has been paid all Ford Reimbursement
Obligations, the Trustee, acting in accordance with the written instructions of
the Administrator, for so long as the Ford LOC Exposure Amount is greater than
zero, solely to the extent that after giving effect to any such withdrawal, the
Fleet Equity Condition would be satisfied, shall withdraw from the
Series 2004-1 Reserve Account all amounts on deposit therein for
payment to HVF.

SECTION 2.08.  Series 2004-1
Letters of Credit and Series 2004-1 Cash Collateral Account.  (a) 
(I) Series 2004-1 Ford Cash Collateral Account Constitutes
Additional Collateral for Series 2004-1 Notes.  In order to secure and provide for the
repayment and payment of the Note Obligations with respect to the
Series 2004-1 Notes, HVF hereby grants a security interest in and
assigns, pledges, grants, transfers and sets over to the Trustee, for the
benefit of the Series 2004-1 Noteholders, the Insurer and Ford, all
of HVF’s right, title and interest in and to the following (whether now or
hereafter existing or acquired): 
(i) the Series 2004-1 Ford Cash Collateral Account,
including any security entitlement thereto; (ii) all funds on deposit in
the Series 2004-1 Ford Cash Collateral Account from time to time;
(iii) all certificates and instruments, if any, representing or evidencing
any or all of the Series 2004-1 Ford Cash Collateral 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 2004-1 Ford
Cash Collateral Account, whether constituting securities, instruments, general
intangibles, investment property, financial assets or other property;
(v) all interest, dividends, cash, instruments

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and other
property from time to time received, receivable or otherwise distributed in
respect of or in exchange for the Series 2004-1 Ford Cash Collateral
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 2004-1
Ford Cash Collateral Account Collateral”).

(II)           Series
2004-1 Non-Ford Cash Collateral Account Constitutes Additional Collateral for
Series 2004-1 Notes.  In order to
secure and provide for the repayment and payment of the Note Obligations with
respect to the Series 2004-1 Notes, HVF hereby grants a security interest in
and assigns, pledges, grants, transfers and sets over to the Trustee, for the
benefit of the Series 2004-1 Noteholders, the Insurer and Ford, all of HVF’s
right, title and interest in and to the following (whether now or hereafter
existing or acquired):  (i) the Series
2004-1 Non-Ford Cash Collateral Account, including any security entitlement thereto;
(ii) all funds on deposit in the 2004-1 Non-Ford Cash Collateral Account from
time to time; (iii) all certificates and instruments, if any, representing or
evidencing any or all of the Series 2004-1 Non-Ford Cash Collateral 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 2004-1 Non-Ford Cash
Collateral 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 2004-1 Non-Ford Cash Collateral 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 2004-1 Non-Ford Cash Collateral Account
Collateral”).

(b)  Series 2004-1
Letter of Credit Expiration Date.  If
prior to the date which is sixteen (16) Business Days prior to the then
scheduled Series 2004-1 Letter of Credit Expiration Date with
respect to any Series 2004-1 Letter of Credit, excluding the amount
available to be drawn under such Series 2004-1 Letter of Credit but
taking into account each substitute Series 2004-1 Letter of Credit
which has been obtained from a Series 2004-1 Eligible Letter of
Credit Provider, and is in full force and effect on such date, (i) the
Series 2004-1 Enhancement Amount would be equal to or greater than
the Series 2004-1 Required Enhancement Amount, (ii) the
Series 2004-1 Liquidity Amount would be equal to or greater than the
Series 2004-1 Required Liquidity Amount, and (iii) if the expiring
Series 2004-1 Letter of Credit is a Series 2004-1 Non-Ford Letter of Credit,
the Series 2004-1 Non-Ford Letter of Credit Liquidity Amount would be equal to
or greater than the Series 2004-1 Demand Note Payment Amount, then the
Administrator shall notify the Trustee and the Insurer in writing no later than
fifteen (15) Business Days prior to such Series 2004-1 Letter of
Credit Expiration Date of such determination. 
If prior to the date which is sixteen (16) Business Days prior to the
then scheduled Series 2004-1 Letter of

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Credit
Expiration Date with respect to any Series 2004-1 Letter of Credit,
excluding such Series 2004-1 Letter of Credit but taking into
account any substitute Series 2004-1 Letter of Credit which has been
obtained from a Series 2004-1 Eligible Letter of Credit Provider and
is in full force and effect on such date, (i) the Series 2004-1
Enhancement Amount would be less than the Series 2004-1 Required
Enhancement Amount, (ii) the Series 2004-1 Liquidity Amount
would be less than the Series 2004-1 Required Liquidity Amount or
(iii) if the expiring Series 2004-1 Letter of Credit is a Series 2004-1
Non-Ford Letter of Credit, the Series 2004-1 Non-Ford Letter of
Credit Liquidity Amount would be less than the Series 2004-1 Demand
Note Payment Amount, then the Administrator shall notify the Trustee and the
Insurer in writing no later than fifteen (15) Business Days prior to such
Series 2004-1 Letter of Credit Expiration Date of (x) the greatest
of (A) the excess, if any, of the Series 2004-1 Required Enhancement
Amount over the Series 2004-1 Enhancement Amount, excluding such
Series 2004-1 Letter of Credit but taking into account any
substitute Series 2004-1 Letter of Credit which has been obtained
from a Series 2004-1 Eligible Letter of Credit Provider, and is in
full force and effect on such date, (B) the excess, if any, of the
Series 2004-1 Required Liquidity Amount over the Series 2004-1
Liquidity Amount, excluding such Series 2004-1 Letter of Credit but
taking into account each substitute Series 2004-1 Letter of Credit
which has been obtained from a Series 2004-1 Eligible Letter of
Credit Provider, as applicable, and is in full force and effect on such date
and (C) if the expiring Series 2004-1 Letter of Credit is a Series 2004-1
Non-Ford Letter of Credit, the excess, if any, of the Series 2004-1
Demand Note Payment Amount over the Series 2004-1 Non-Ford Letter of
Credit Liquidity Amount, excluding such Series 2004-1 Non-Ford Letter of Credit
but taking into account each substitute Series 2004-1 Non-Ford Letter of Credit
which has been obtained from a Series 2004-1 Eligible Letter of Credit Provider
and is in full force and effect on such date, and (y) the amount available to
be drawn on such expiring Series 2004-1 Letter of Credit on such
date.  Upon receipt of such notice by the
Trustee on or prior to 10:00 a.m. (New York City time) on any Business Day, the
Trustee shall, by 1:00 p.m. (New York City time) on such Business Day (or, in
the case of any notice given to the Trustee after 10:00 a.m. (New York City
time), by 1:00 p.m. (New York City time) on the next following Business Day),
draw the lesser of the amounts set forth in clauses (x) and (y) above on such
Series 2004-1 Letter of Credit by presenting a draft accompanied by
a Certificate of Termination Demand and shall cause the LOC Termination
Disbursement to be deposited in the Series 2004-1 Non-Ford Cash Collateral
Account, in the case of a LOC Termination Disbursement under a Series 2004-1
Non-Ford Letter of Credit, and the Series 2004-1 Ford Cash Collateral Account,
in the case of a LOC Termination Disbursement under a Series 2004-1 Ford Letter
of Credit.  If the Trustee does not
receive the notice from the Administrator described above on or prior to the
date that is fifteen (15) Business Days prior to each Series 2004-1
Letter of Credit Expiration Date, the Trustee shall, by 1:00 p.m. (New York
City time) on such Business Day draw the full amount of such Series 2004-1
Letter of Credit by presenting a draft accompanied by a Certificate of
Termination Demand and shall cause the LOC Termination Disbursements to be
deposited in the applicable Series 2004-1 Cash Collateral Account.

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(c)  Series 2004-1
Letter of Credit Providers.  The
Administrator shall notify the Trustee and the Insurer in writing within one
Business Day of becoming aware that the short-term debt credit rating of any
Series 2004-1 Letter of Credit Provider has fallen below “A-1” as
determined by Standard & Poor’s or “P-1” as determined by Moody’s or the
long-term debt credit rating of any Series 2004-1 Letter of Credit
Provider has fallen below “A+” as determined by Standard & Poor’s or “A1”
as determined by Moody’s (with respect to any Series 2004-1 Letter
of Credit Provider, a “Downgrade Event”).  On the thirtieth (30th) day after the
occurrence of a Downgrade Event with respect to any Series 2004-1
Letter of Credit Provider, the Administrator shall notify the Trustee and the
Insurer in writing on such date of (i) the greatest of (A) the
excess, if any, of the Series 2004-1 Required Enhancement Amount
over the Series 2004-1 Enhancement Amount, excluding the available
amount under the Series 2004-1 Letter of Credit issued by such
Series 2004-1 Letter of Credit Provider, on such date, (B) the
excess, if any, of the Series 2004-1 Required Liquidity Amount over
the Series 2004-1 Liquidity Amount, excluding the available amount
under such Series 2004-1 Letter of Credit, on such date, and (C) if
the Downgrade Event affects a Series 2004-1 Non-Ford Letter of Credit, the
excess, if any, of the Series 2004-1 Demand Note Payment Amount over the Series
2004-1 Non-Ford Letter of Credit Liquidity Amount, excluding the available
amount under such Series 2004-1 Non-Ford Letter of Credit, on such date, and
(ii) the amount available to be drawn on such Series 2004-1
Letter of Credit on such date.  Upon
receipt of such notice by the Trustee on or prior to 10:00 a.m. (New York City
time) on any Business Day, the Trustee shall, by 1:00 p.m. (New York City time)
on such Business Day (or, in the case of any notice given to the Trustee after
10:00 a.m. (New York City time), by 1:00 p.m. (New York City time) on the next
following Business Day), draw on such Series 2004-1 Letter of Credit
in an amount equal to the lesser of the amount in clause (i) or
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 LOC Termination Disbursement to be deposited in a Series 2004-1
Non-Ford Cash Collateral Account, in the case of a LOC Termination Disbursement
under a Series 2004-1 Non-Ford Letter of Credit, and the Series 2004-1 Ford
Cash Collateral Account, in the case of a LOC Termination Disbursement under a
Series 2004-1 Ford Letter of Credit.

(d)  Preference Amount Demands
on the Series 2004-1 Non-Ford Letters of Credit.  If the Insurer notifies the Trustee in
writing that the Insurer shall have made a payment under the Insurance Policy
in respect of a Preference Amount, subject to the satisfaction of the
conditions set forth in the next succeeding sentence, the Trustee shall draw an
amount equal to the lesser of (i) such Preference Amount and (ii) the
Series 2004-1 Non-Ford Letter of Credit Liquidity Amount on the
Series 2004-1 Non-Ford Letters of Credit by presenting to each
Series 2004-1 Non-Ford Letter of Credit Provider (with a copy to the
Insurer) a draft accompanied by a Certificate of Preference Payment Demand and
shall cause the LOC Preference Payment Disbursements to be paid to the Insurer;
provided,
however, that if the Series 2004-1 Non-Ford Cash Collateral
Account has been established and funded, the Trustee shall draw an amount equal
to the

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product of
(a) 100% minus the Series 2004-1 Non-Ford Cash Collateral
Percentage and (b) the lesser of the amounts referred to in
clause (i) and (ii) on such Business Day on the Series 2004-1
Non-Ford Letters of Credit as calculated by the Administrator, at the request
of the Trustee, and provided in writing to the Trustee and the Insurer.  Prior to any draw on the Series 2004-1
Non-Ford Letters of Credit or withdrawal from the Series 2004-1
Non-Ford Cash Collateral Account pursuant to this Section 2.08(d), the
Trustee shall have received a certified copy of the order requiring the return
of such Preference Amount.

(e)  (I) Reductions in Stated
Amounts of the Series 2004-1 Ford Letters of Credit.  If the Trustee receives a written notice from
the Lessee, substantially in the form of Exhibit D-1-1, requesting a reduction
in the stated amount of any Series 2004-1 Ford Letter of Credit, the
Trustee shall within two Business Days of the receipt of such notice deliver to
the Series 2004-1 Ford Letter of Credit Provider who issued such
Series 2004-1 Ford Letter of Credit, with a copy to Ford, a Notice
of Reduction requesting a reduction in the stated amount of such
Series 2004-1 Ford Letter of Credit in the amount requested in such
notice effective on the date set forth in such notice provided that on such
effective date, after giving effect to the requested reduction in the stated
amount of such Series 2004-1 Ford Letter of Credit, (i) the
Series 2004-1 Enhancement Amount will equal or exceed the
Series 2004-1 Required Enhancement Amount, (ii) the
Series 2004-1 Liquidity Amount will equal or exceed the
Series 2004-1 Required Liquidity Amount and (iii) the
Series 2004-1 Letter of Credit Liquidity Amount will equal or exceed
the Series 2004-1 Demand Note Payment Amount.  If the Trustee receives a written notice from
Ford, substantially in the form of Exhibit D-1-2, requesting the replacement of
any Series 2004-1 Ford Letter of Credit, the Trustee shall within two Business
Days of the receipt of such notice and upon receipt of a substitute Series 2004-1
Ford Letter of Credit having a stated amount equal to the available amount of
the Series 2004-1 Ford Letter of Credit being replaced issued by a Series
2004-1 Eligible Ford Letter of Credit Provider deliver to the Series 2004-1
Letter of Credit Provider who issued the Series 2004-1 Ford Letter of Credit
being replaced a written notice in the form provided in such Series 2004-1 Ford
Letter of Credit confirming cancellation of such Series 2004-1 Ford Letter of
Credit and shall deliver such cancelled Series 2004-1 Ford Letter of Credit to
such Series 2004-1 Letter of Credit Provider as soon as practicable.

(II)           Reductions
in Stated Amounts of the Series 2004-1 Non-Ford Letters of Credit.  If the Trustee receives a written notice from
the Lessee, substantially in the form of Exhibit D-1-1, requesting a reduction
in the stated amount of any Series 2004-1 Non-Ford Letter of Credit, the
Trustee shall within two Business Days of the receipt of such notice deliver to
the Series 2004-1 Non-Ford Letter of Credit Provider who issued such Series
2004-1 Non-Ford Letter of Credit a Notice of Reduction requesting a reduction
in the stated amount of such Series 2004-1 Non-Ford Letter of Credit in the
amount requested in such notice effective on the date set forth in such notice
provided that on such effective date, after giving effect to the requested
reduction in the stated amount of such Series 2004-1 Non-Ford Letter of Credit,
(i) the Series 2004-1

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Enhancement Amount will
equal or exceed the Series 2004-1 Required Enhancement Amount, (ii) the Series
2004-1 Adjusted Liquidity Amount will equal or exceed the Series 2004-1
Required Liquidity Amount, and (iii) the Series 2004-1 Non-Ford Letter of
Credit Liquidity Amount will equal or exceed the Series 2004-1 Demand Note Payment
Amount.

(f)  (I) Draws on the
Series 2004-1 Ford Letters of Credit.  If there is more than one Series 2004-1
Ford Letter of Credit on the date of any draw on the Series 2004-1
Ford Letters of Credit pursuant to the terms of this Series Supplement (other
than pursuant to Sections 2.08(b) and (c) with this Series Supplement), the
Administrator shall instruct the Trustee, in writing, to draw on each
Series 2004-1 Ford Letter of Credit in an amount equal to the Pro
Rata Share of the Series 2004-1 Ford Letter of Credit Provider
issuing such Series 2004-1 Ford Letter of Credit of the amount of
such draw on the Series 2004-1 Ford Letters of Credit.

(II)           Draws
on the Series 2004-1 Non-Ford Letters of Credit.  If there is more than one Series 2004-1
Non-Ford Letter of Credit on the date of any draw on the Series 2004-1 Non-Ford
Letters of Credit pursuant to the terms of this Series Supplement (other than
pursuant to Sections 2.08(b) and (c) of this Series Supplement),
the Administrator shall instruct the Trustee, in writing, to draw on each
Series 2004-1 Non-Ford Letter of Credit in an amount equal to the Pro Rata
Share of the Series 2004-1 Non-Ford Letter of Credit Provider issuing such
Series 2004-1 Non-Ford Letter of Credit of the amount of such draw on the Series
2004-1 Non-Ford Letters of Credit.

(g)  (I) Establishment of
Series 2004-1 Ford Cash Collateral Account.  On or prior to the date of any drawing under
a Series 2004-1 Ford Letter of Credit pursuant to
Section 2.08(b) or (c) of this Series Supplement, HVF shall establish
and maintain in the name of the Trustee for the benefit of the Series 2004-1
Noteholders, the Insurer and Ford, an account (the “Series 2004-1
Ford Cash Collateral Account”), bearing a designation clearly indicating
that the funds deposited therein are held for the benefit of the
Series 2004-1 Noteholders, the Insurer and Ford.  The Series 2004-1 Ford Cash
Collateral Account shall be an Eligible Deposit Account.  If the Series 2004-1 Ford Cash
Collateral Account is at any time no longer an Eligible Deposit Account, HVF
shall, within 10 Business Days of obtaining knowledge that the Series 2004-1
Ford Cash Collateral Account is no longer an Eligible Deposit Account,
establish a new Series 2004-1 Ford Cash Collateral Account that is
an Eligible Deposit Account.  If a new
Series 2004-1 Ford Cash Collateral Account is established, HVF shall
instruct the Trustee in writing to transfer all cash and investments from the
non-qualifying Series 2004-1 Ford Cash Collateral Account into the
new Series 2004-1 Ford Cash Collateral Account.

(II)           Establishment
of Series 2004-1 Non-Ford Cash Collateral Account.  On or prior to the date of any drawing under
a Series 2004-1 Non-Ford Letter of Credit pursuant to Section 2.08(b) or (c) of
this Series Supplement, HVF shall

 69
 

establish and maintain in
the name of the Trustee for the benefit of the Series 2004-1 Noteholders, the
Insurer and Ford, an account (the “Series 2004-1 Non-Ford Cash Collateral
Account”), bearing a designation clearly indicating that the funds
deposited therein are held for the benefit of the Series 2004-1 Noteholders,
the Insurer and Ford.  The Series 2004-1
Non-Ford Cash Collateral Account shall be an Eligible Deposit Account.  If the Series 2004-1 Non-Ford Cash Collateral
Account is at any time no longer an Eligible Deposit Account, HVF shall, within
10 Business Days of obtaining knowledge that the Series 2004-1 Non-Ford Cash
Collateral Account is no longer an Eligible Deposit Account, establish a new
Series 2004-1 Non-Ford Cash Collateral Account that is an Eligible Deposit
Account.  If a new Series 2004-1 Non-Ford
Cash Collateral Account is established, HVF shall instruct the Trustee in
writing to transfer all cash and investments from the non-qualifying Series
2004-1 Non-Ford Cash Collateral Account into the new Series 2004-1 Non-Ford
Cash Collateral Account.

(h)  Administration of the
Series 2004-1 Cash Collateral Account.  HVF may instruct (by standing instructions or
otherwise) the institution maintaining a Series 2004-1 Cash
Collateral Account to invest funds on deposit in such Series 2004-1
Cash Collateral Account from time to time in Permitted Investments.  Any investment of funds on deposit in a
Series 2004-1 Cash Collateral Account shall mature not later than
the Business Day prior to the first Payment Date following the date on which
such funds were received, unless any Permitted Investment held in a
Series 2004-1 Cash Collateral Account is held with the Trustee, in
which case such investment may mature on such Payment Date so long as such
funds shall be available for withdrawal on or prior to such Payment Date.  HVF 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 initial
purchase price of such Permitted Investment. 
In the absence of written investment instructions hereunder, funds on
deposit in a Series 2004-1 Cash Collateral Account shall remain
uninvested.

(i)  Earnings from
Series 2004-1 Cash Collateral Account.  All interest and earnings (net of losses and
investment expenses) paid on funds on deposit in the Series 2004-1
Cash Collateral Account shall be deemed to be on deposit therein and available
for distribution.

(j)  Series 2004-1 Cash Collateral
Account Surplus.  (X) In the event
that the Series 2004-1 Cash Collateral Account Surplus on any Payment Date is
greater than zero, the Administrator may direct the Trustee to, and the
Trustee, acting in accordance with the written instructions of the
Administrator (with a copy to the Insurer), shall, subject to the limitations
set forth in this Section 2.08(j)(X), withdraw the amount specified by
the Administrator from the Series 2004-1 Cash Collateral Account specified by
the Administrator and apply such amount in accordance with the terms of this Section
2.08(j)(X).  The amount of any such
withdrawal from the Series 2004-1 Ford Cash Collateral Account shall be limited
to the lesser of (a) the Series 2004-1 Available Ford Cash Collateral Account
Amount on such Payment Date and (b) the Series 2004-1 Cash

 70
 

Collateral
Account Surplus (after giving effect to any withdrawal from the Series 2004-1
Non-Ford Cash Collateral Account) on such Payment Date.  The amount of any such withdrawal from the
Series 2004-1 Non-Ford Cash Collateral Account shall be limited to the least of
(a) the Series 2004-1 Available Non-Ford Cash Collateral Account Amount on such
Payment Date, (b) the Series 2004-1 Cash Collateral Account Surplus (after
giving effect to any withdrawal from the Series 2004-1 Ford Cash Collateral
Account) on such Payment Date and (c) the excess, if any, of the Series 2004-1
Non-Ford Letter of Credit Liquidity Amount on such Payment Date over the Series
2004-1 Demand Note Payment Amount on such Payment Date.  Any amounts withdrawn from the Series 2004-1
Ford Cash Collateral Account pursuant to this Section 2.08(j)(X) shall
be paid to Ford.  Any amounts withdrawn
from the Series 2004-1 Non-Ford Cash Collateral Account shall be paid:  first, to Ford to the extent that
there are unpaid Ford Reimbursement Obligations due and owing to Ford, the
lesser of the amount withdrawn from the Series 2004-1 Non-Ford Cash Collateral
Account and the amount of such unpaid Ford Reimbursement Obligations, second,
only for so long as the Ford LOC Exposure Amount is greater than zero, solely
to the extent that after giving effect to any such withdrawal, the Fleet Equity
Condition would be satisfied, to the Series 2004-1 Non-Ford Letter of Credit
Providers, to the extent that there are unreimbursed Disbursements due and
owing to such Series 2004-1 Non-Ford Letter of Credit Providers in respect of
the Series 2004-1 Non-Ford Letters of Credit, for application in accordance
with the provisions of the respective Series 2004-1 Non-Ford Letter of Credit
Reimbursement Agreement, and third, only for so long as the Ford LOC
Exposure Amount is greater than zero, solely to the extent that after giving
effect to any such withdrawal, the Fleet Equity Condition would be satisfied,
to HVF any remaining amounts.  (Y)
Irrespective of whether there is a Series 2004-1 Cash Collateral Account
Surplus, in the event that the Series 2004-1 Ford Cash Collateral Account has
been established pursuant to Section 2.08(g)(I) of this Series
Supplement, the proceeds of one or more LOC Termination Disbursements have been
deposited therein pursuant to Section 2.08(b) or Section 2.08(c)
of this Series Supplement and Ford delivers to the Trustee a Series 2004-1 Ford
Letter of Credit from a Series 2004-1 Eligible Letter of Credit Provider the
Administrator shall direct the Trustee to, and the Trustee, acting in
accordance with the written instructions of the Administrator shall withdraw
from the Series 2004-1 Ford Cash Collateral Account an amount equal to the
stated amount of such Series 2004-1 Ford Letter of Credit and pay such amount
to Ford.

(k)  Termination of Series
2004-1 Cash Collateral Accounts. 
(X)  Upon the earlier of the
termination of this Series Supplement in accordance with Section 6.13 of this
Series Supplement and the Class A-4 Legal Final Payment Date, the Trustee,
acting in accordance with the written instructions of the Administrator, shall
withdraw from the Series 2004-1 Ford Cash Collateral Account and (i) pay to
Ford an amount equal to the lesser of (x) the Series 2004-1 Available Ford Cash
Collateral Account Amount and (y) the excess, if any, of (A) the aggregate
amount of LOC Termination Disbursements deposited into the Series 2004-1 Ford
Cash Collateral Account pursuant to Section 2.08(b) or Section
2.08(c) of this Series Supplement over (B) the aggregate amount withdrawn
from the Series 2004-1 Ford Cash Collateral Account pursuant to 

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Section
2.03(e)(Y) or Section 2.05(b)(ii) of this
Series Supplement that has not be reimbursed by HVF in accordance with Section
2.13 of this Series Supplement on or prior to such date, (ii) pay to Ford,
an amount equal to the lesser of (x) the amount of unpaid Ford Reimbursement
Obligations due and owing to Ford and (y) the excess, if any, of the Series
2004-1 Available Ford Cash Collateral Account Amount over the amount paid to
Ford pursuant to clause (i) above and (iii) pay to HVF, any funds
remaining in the Series 2004-1 Ford Cash Collateral Account.

(Y)  Upon the
termination of this Series Supplement in accordance with its terms, the
Trustee, acting in accordance with the written instructions of the
Administrator, after the prior payment of all amounts due and owing to the
Series 2004-1 Noteholders, the Insurer and Ford and payable from the Series
2004-1 Non-Ford Cash Collateral Account as provided herein, shall withdraw from
such Series 2004-1 Non-Ford Cash Collateral Account all amounts on deposit
therein (to the extent not withdrawn pursuant to Section 2.08(d) above)
and shall pay such amounts, first, to Ford to the extent that there are
unpaid Ford Reimbursement Obligations due and owing to Ford, second,
only for so long as the Ford LOC Exposure Amount is greater than zero, solely
to the extent that after giving effect to any such withdrawal, the Fleet Equity
Condition would be satisfied, pro  rata to the Series 2004-1
Non-Ford Letter of Credit Providers, to the extent that there are unreimbursed
Disbursements due and owing to such Series 2004-1 Non-Ford Letter of Credit
Providers, for application in accordance with the provisions of the respective
Series 2004-1 Non-Ford Letters of Credit, and third, only for so long as
the Ford LOC Exposure Amount is greater than zero, solely to the extent that
after giving effect to any such withdrawal, the Fleet Equity Condition would be
satisfied, to HVF any remaining amounts.

SECTION
2.09.  Series 2004-1
Distribution Account.  (a)  Establishment of Series 2004-1
Distribution Account.  The Trustee shall
establish and maintain in the name of the Trustee for the benefit of the Series 2004-1
Noteholders and Ford an account (the “Series 2004-1 Distribution
Account”), bearing a designation clearly indicating that the funds
deposited therein are held for the benefit of the Series 2004-1
Noteholders and Ford.  The
Series 2004-1 Distribution Account shall be an Eligible Deposit
Account.  If the Series 2004-1
Distribution Account is at any time no longer an Eligible Deposit Account, HVF
shall, within 10 Business Days of obtaining knowledge that the Series 2004-1
Distribution Account is no longer an Eligible Deposit Account, establish a new
Series 2004-1 Distribution Account that is an Eligible Deposit
Account.  If a new Series 2004-1
Distribution Account is established, HVF shall instruct the Trustee in writing
to transfer all cash and investments from the non-qualifying Series 2004-1
Distribution Account into the new Series 2004-1 Distribution
Account.  Initially, the Series 2004-1
Distribution Account will be established with the Trustee.

(b)  Administration of the Series 2004-1
Distribution Account.  The
Administrator may instruct the institution maintaining the Series 2004-1
Distribution Account in writing to invest funds on deposit in the
Series 2004-1 Distribution Account

 72
 

from time to time in Permitted Investments; provided,
however, that any such investment shall mature not later than the Business
Day prior to the Payment Date following the date on which such funds were
received, unless any Permitted Investment held in the Series 2004-1
Distribution Account is held with the Trustee, then such investment may mature
on such Payment Date and such funds shall be available for withdrawal on or
prior to such Payment Date.  All such
Permitted Investments will be credited to the Series 2004-1
Distribution Account.  In the absence of
written investment instructions hereunder, funds on deposit in the
Series 2004-1 Distribution Account shall remain uninvested.

(c)  Earnings from Series 2004-1
Distribution Account.  All interest
and earnings (net of losses and investment expenses) paid on funds on deposit
in the Series 2004-1 Distribution Account shall be deemed to be on
deposit and available for distribution.

(d)  Series 2004-1 Distribution
Account Constitutes Additional Collateral for Series 2004-1 Notes.  In order to secure and provide for the repayment
and payment of the Note Obligations with respect to the Series 2004-1
Notes, HVF hereby grants a security interest in and assigns, pledges, grants,
transfers and sets over to the Trustee, for the benefit of the Series 2004-1
Noteholders and Ford all of HVF’s right, title and interest in and to the
following (whether now or hereafter existing or acquired):  (i) the Series 2004-1
Distribution Account, including any security entitlement thereto; (ii) all
funds on deposit therein from time to time; (iii) all certificates and
instruments, if any, representing or evidencing any or all of the
Series 2004-1 Distribution Account or the funds on deposit therein
from time to time; (iv) all investments made at any time and from time to
time with monies in the Series 2004-1 Distribution Account, whether
constituting securities, instruments, general intangibles, investment property,
financial assets or other property; (v) all interest, dividends, cash,
instruments and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for the Series 2004-1
Distribution Account, the funds on deposit therein from time to time or the
investments made with such funds; and (vi) all proceeds of any and all of
the foregoing, including, without limitation, cash (the items in the foregoing
clauses (i) through (vi) are referred to, collectively, as the “Series 2004-1
Distribution Account Collateral”).

SECTION
2.10.  Trustee as Securities
Intermediary.  (a)  The Trustee or other Person holding the
Series 2004-1 Collection Account, the Series 2004-1
Excess Collection Account, the Series 2004-1 Accrued Interest
Account, the Series 2004-1 Reserve Account, the Series 2004-1
Cash Collateral Account, or the Series 2004-1 Distribution Account
(each a “Series 2004-1 Designated Account”) shall be the “Securities
Intermediary”.  If the Securities
Intermediary in respect of any Series 2004-1 Designated Account is
not the Trustee, HVF shall obtain the express agreement of such Person to the
obligations of the Securities Intermediary set forth in this Section 2.10.

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(b) 
The Securities Intermediary agrees that:

(i) The Series 2004-1 Designated
Accounts are accounts to which “financial assets” within the meaning of
Section 8-102(a)(9) (“Financial Assets”) of the UCC in effect in the
State of New York (the “New York UCC”) will be credited;

(ii) All securities or other property
underlying any Financial Assets credited to any Series 2004-1
Designated Account shall be registered in the name of the Securities Intermediary,
indorsed to the Securities Intermediary or in blank or credited to another
securities account maintained in the name of the Securities Intermediary and in
no case will any Financial Asset credited to any Series 2004-1
Designated Account be registered in the name of HVF, payable to the order of
HVF or specially endorsed to HVF;

(iii) All property delivered to the
Securities Intermediary pursuant to this Series Supplement will be promptly
credited to the appropriate Series 2004-1 Designated Account;

(iv) Each item of property (whether
investment property, security, instrument or cash) credited to a
Series 2004-1 Designated Account shall be treated as a Financial
Asset;

(v) If at any time the Securities
Intermediary shall receive any order from the Trustee directing transfer or
redemption of any Financial Asset relating to the Series 2004-1
Designated Accounts, the Securities Intermediary shall comply with such
entitlement order without further consent by HVF or the Administrator;

(vi) The Series 2004-1 Designated
Accounts shall be governed by the laws of the State of New York, regardless of
any provision of any other agreement. 
For purposes of the UCC, New York shall be deemed to the Securities
Intermediary’s jurisdiction and the Series 2004-1 Designated
Accounts (as well as the “securities entitlements” (as defined in
Section 8-102(a)(17) of the New York UCC) related thereto) shall be governed by
the laws of the State of New York;

(vii) The Securities Intermediary has not
entered into, and until termination of this Series Supplement, will not enter
into, any agreement with any other Person relating to the Series 2004-1
Designated Accounts and/or any Financial Assets credited thereto pursuant to
which it has agreed to comply with entitlement orders (as defined in Section
8-102(a)(8) of the New York UCC) of such other Person and the Securities
Intermediary has not entered into, and until the termination of this Series
Supplement will not enter into, any agreement with HVF purporting to limit or
condition the obligation of the Securities Intermediary to comply with
entitlement orders as set forth in Section 2.10(b)(v) of this Series
Supplement; and

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(viii) Except for the claims and interest of
the Trustee and HVF in the Series 2004-1 Designated Accounts, the
Securities Intermediary knows of no claim to, or interest, in the
Series 2004-1 Designated Accounts or in any Financial Asset credited
thereto.  If the Securities Intermediary
has actual knowledge of the assertion by any other person of any lien, encumbrance,
or adverse claim (including any writ, garnishment, judgment, warrant of
attachment, execution or similar process) against any Series 2004-1
Designated Account or in any Financial Asset carried therein, the Securities
Intermediary will promptly notify the Trustee, the Administrator and HVF
thereof.

         (c)  The Trustee shall possess all right, title
and interest in all funds on deposit from time to time in the Series 2004-1
Designated Accounts and in all proceeds thereof, and shall be the only person
authorized to originate entitlement orders in respect of the Series 2004-1
Designated Accounts.

SECTION
2.11.  Series 2004-1
Interest Rate Hedges.  (a)  If One-Month LIBOR for any Series 2004-1
Interest Period exceeds 8.90% per annum, HVF shall acquire one or more interest
rate caps or swaps, in form and substance acceptable to the Insurer (each a “Series 2004-1
Interest Rate Hedge”), from an Eligible Interest Rate Hedge Provider with
funds available to it pursuant to Section 2.02(f) or 2.03(h)(v) of this
Series Supplement on or prior to the first day of the next succeeding
Series 2004-1 Interest Period. 
The aggregate initial notional amount of all Series 2004-1
Interest Rate Hedges shall equal the Class A-1 Principal Amount on
the first day of such next succeeding Series 2004-1 Interest Period,
and, thereafter, the aggregate notional amount of all Series 2004-1
Interest Rate Hedges may be reduced pursuant to the related Series 2004-1
Interest Rate Hedge but shall not at any time be less than the Class A-1
Principal Amount.  The strike rate of
each Series 2004-1 Interest Rate Hedge in the form of a cap shall
not be greater than 9.90%.  The fixed
rate of each Series 2004-1 Interest Rate Hedge in the form of a swap
shall not be greater than 9.90%.  HVF
shall satisfy the Series 2004-1 Rating Agency Condition in
connection with its acquisition of any Series 2004-1 Interest Rate
Hedge.

(b)  If, at any time, an Interest Rate Hedge
Provider is not an Eligible Interest Rate Hedge Provider, then HVF shall cause
such Interest Rate Hedge Provider within 30 days following such occurrence, at
such Interest Rate Hedge Provider’s expense, to do either of the following
(i) obtain a replacement interest rate cap or swap on the same terms as
the Series 2004-1 Interest Rate Hedge to which such Interest Rate
Hedge Provider is a party from an Eligible Interest Rate Hedge Provider and
simultaneously with such replacement HVF shall terminate the Series 2004-1
Interest Rate Hedge being replaced or (ii) enter into any arrangement satisfactory
to Standard & Poor’s and Moody’s and consented to by the Insurer, which
consent, during any period when an Insurer Default is continuing, shall not be
unreasonably withheld, which is sufficient to maintain or restore the
immediately prior ratings of the Series 2004-1 Notes by Standard
& Poor’s and Moody’s without giving effect to the Insurance Policy;

 75
 

provided, however, that no termination of a
Series 2004-1 Interest Rate Hedge shall occur until HVF shall have
entered into a replacement Series 2004-1 Interest Rate Hedge.

(c)  Each Series 2004-1 Interest Rate
Hedge shall provide that if the Interest Rate Hedge Provider thereunder is
required to take any of the actions described in clause (i) or
(ii) of Section 2.11(b) of this Series Supplement and such action is
not taken within 30 days, then such Interest Rate Hedge Provider shall be
obligated, until a replacement Series 2004-1 Interest Rate Hedge is
executed and in effect, to collateralize its obligations under such
Series 2004-1 Interest Rate Hedge in an amount equal to the greatest
of (i) the marked to market value of such Series 2004-1
Interest Rate Hedge, (ii) the next payment due from such Interest Rate
Hedge Provider and (iii) 1% of the notional amount of such
Series 2004-1 Interest Rate Hedge.

(d)  Each Series 2004-1 Interest Rate
Hedge shall provide that if the long-term senior unsecured debt rating of the
Interest Rate Hedge Provider providing such Series 2004-1 Interest
Rate Hedge is withdrawn or falls below “A3” by Moody’s or “BBB-” by Standard
& Poor’s, then HVF shall terminate such Series 2004-1 Interest
Rate Hedge, provided, however, that such Series 2004-1 Interest Rate Hedge
shall not be terminated until either: 
(i) such Interest Rate Hedge Provider, at the expense of such
Interest Rate Hedge Provider, has obtained a replacement Series 2004-1
Interest Rate Hedge on the same terms as the Series 2004-1 Interest
Rate Hedge terminated from an Eligible Interest Rate Hedge Provider, or
(ii) such Interest Rate Hedge Provider at its expense has entered into an
arrangement satisfactory to Standard & Poor’s, Moody’s and the
Insurer.  The Series 2004-1
Rating Agency Condition shall be satisfied in connection with the acquisition
of any replacement Series 2004-1 Interest Rate Hedge.

(e)  To secure payment of the Note Obligations
with respect to the Series 2004-1 Notes, HVF hereby grants a
security interest in, and assigns, pledges, grants, transfers and sets over to
the Trustee, for the benefit of the Series 2004-1 Noteholders and
the Insurer, all of HVF’s right, title and interest, whether now or hereafter
existing or acquired, in the Series 2004-1 Interest Rate Hedges and
all proceeds thereof.  HVF shall require
all proceeds of the Series 2004-1 Interest Rate Hedges to be paid
to, and the Trustee shall deposit all proceeds of the Series 2004-1
Interest Rate Hedges into, the Series 2004-1 Collection Account.

SECTION
2.12.  Series 2004-1 Demand
Note Constitutes Additional Collateral for Series 2004-1 Notes.  (a)  In
order to secure and provide for the repayment and payment of the Note
Obligations with respect to the Series 2004-1 Notes, HVF hereby
grants a security interest in and assigns, pledges, grants, transfers and sets
over to the Trustee, for the benefit of the Series 2004-1
Noteholders, the Insurer, and Ford all of HVF’s right, title and interest in
and to the following (whether now or hereafter existing or acquired):  (i) the Series 2004-1 Demand
Note; (ii) all certificates and instruments, if any, representing or
evidencing the Series 2004-1 Demand Note; and (iii) all
proceeds of any and all of the foregoing, including, without limitation,
cash.  On the date hereof, HVF

 76
 

shall deliver to the Trustee, for the benefit
of the Series 2004-1 Noteholders and the Insurer, the
Series 2004-1 Demand Note, endorsed in blank.  The Trustee, for the benefit of the
Series 2004-1 Noteholders and the Insurer, shall be the only Person
authorized to make a demand for payment on the Series 2004-1 Demand
Note.

(b)  Other than pursuant to a payment made upon a
demand thereon by the Trustee, HVF shall not reduce the amount of the
Series 2004-1 Demand Note or forgive amounts payable thereunder so
that the outstanding principal amount of the Series 2004-1 Demand
Note after such reduction or forgiveness is less than the Series 2004-1
Letter of Credit Liquidity Amount.  HVF
shall not agree, to any amendment of the Series 2004-1 Demand Note
without first satisfying the Series 2004-1 Rating Agency Condition.

(c)  HVF agrees that on the Series 2004-1
Closing Date it will have capitalization in an amount equal to or greater than
4.17% of the sum of (x) the Series 2004-1 Principal Amount and (y)
the maximum outstanding principal amount of the Series 2002-1 Notes.

(d)  Upon the occurrence and during the
continuance of an Amortization Event with respect to the Series 2004-1
Notes, the Trustee may and, at the written direction of the Insurer or the
Required Noteholders with respect to the Series 2004-1 Notes shall,
make one or more demands (each a “Demand Notice”) on Hertz for payment
under the Series 2004-1 Demand Note, in each case, in an amount
equal to the lesser of (i) the principal amount of the Series 2004-1
Demand Note and (ii) on any Business Day (A) prior to the second
Business Day immediately preceding the Three-Year Notes Legal Final Payment
Date, the amount of any Principal Deficit Amount on such date, (B) on or
after the second Business Day immediately preceding the Three-Year Notes Legal
Final Payment Date but prior to the second Business Day immediately preceding
the Class A-3 Legal Final Payment Date, the greater of (x) the
Principal Deficit Amount on such date and (y) the sum of the Class A-1
Principal Amount and the Class A-2 Principal Amount (on or prior to
the Three-Year Notes Legal Final Payment Date, calculated after giving effect
to the distribution of all amounts on account of principal that will be
available to be distributed to the Class A-1 Noteholders and the
Class A-2 Noteholders (other than under the Insurance Policy) in
accordance with this Series Supplement on the Three-Year Notes Legal Final
Payment Date (including, but not limited to, amounts to be withdrawn from the
Series 2004-1 Reserve Account pursuant to Section 2.05(c) of
this Series Supplement)), (C) on or after the second Business Day
immediately preceding the Class A-3 Legal Final Payment Date but
prior to the second Business Day immediately preceding the Class A-4
Legal Final Payment Date, the greater of (x) the Principal Deficit Amount
on such Business Day and (y) the sum of the Class A-1 Principal
Amount, the Class A-2 Principal Amount and the Class A-3
Principal Amount (on or prior to the Class A-3 Legal Final Payment
Date, calculated after giving effect to the distribution of all amounts on
account of principal that will be available to be distributed to the
Class A-3 Noteholders (other than under the Insurance Policy) in
accordance with this Series Supplement on the Class A-3 Legal Final
Payment Date (including, but not limited

 77
 

to, amounts to be withdrawn from the
Series 2004-1 Reserve Account pursuant to Section 2.05(c) of
this Series Supplement)) and (D) on or after the second Business Day
immediately preceding the Class A-4 Legal Final Payment Date, the
Series 2004-1 Principal Amount (on or prior to the Class A-4
Legal Final Payment Date, calculated after giving effect to the distribution of
all amounts that will be available to be distributed to the Class A-4
Noteholders (other than under the Insurance Policy) in accordance with this
Series Supplement on the Class A-4 Legal Final Payment Date
(including, but not limited to, amounts to be withdrawn from the
Series 2004-1 Reserve Account pursuant to Section 2.05(c) of
this Series Supplement)).  If
(i) the Trustee shall have made such a Demand Notice and Hertz shall have
failed to pay to the Trustee or deposit into the Series 2004-1
Distribution Account the amount specified in such Demand Notice in whole or in
part by 12:00 noon (New York City time) on the Business Day following the
making of the Demand Notice or (ii) due to the occurrence of an Event of
Bankruptcy (or the occurrence of an event described in clause (a) of the
definition thereto, without the lapse of a period of 60 consecutive days) with
respect to Hertz, the Trustee shall not have delivered such Demand Notice to
Hertz, the Trustee shall draw on the Series 2004-1 Non-Ford Letters of Credit,
if any, by 12:00 p.m. (New York City time) on such Business Day an amount equal
to the lesser of:

(A) the amount that Hertz failed to pay under
the Series 2004-1 Demand Note (or the amount that the Trustee failed
to demand for payment thereunder);

(B) the Series 2004-1 Non-Ford
Letter of Credit Amount on such Business Day; and

(C) on any Business Day:

(i)
other than the Business Day immediately preceding a Legal Final Payment Date,
the Principal Deficit Amount on such Business Day;

(ii)
on the Business Day immediately preceding the Three-Year Notes Legal Final
Payment Date, the sum of (x) the Principal Deficit Amount on such Business Day,
and (y) the lesser of (1) the amount by which the Series 2004-1
Liquidity Amount (after giving effect to any withdrawals to be made from the
Series 2004-1 Reserve Account pursuant to Section 2.03(d) and
Section 2.05(b)(i) of this Series Supplement and any drawings to be
made under the Series 2004-1 Letters of Credit pursuant to
Section 2.03(e) of this Series Supplement on the Three-Year Notes Legal
Final Payment Date) will exceed the Series 2004-1 Required Liquidity
Amount (after giving effect to all anticipated reductions in the
Series 2004-1 Principal Amount on the Three-Year Notes Legal Final
Payment Date) and (2) an amount equal to the excess, if any, of (a) the
Series 2004-1 Required Liquidity Amount on the earlier of (I) the
date of the first occurrence of a Series 2004-1 Lease Interest
Payment Deficit

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(other than any
Series 2004-1 Lease Interest Payment Deficit resulting from a
failure to pay Rent or other amount payable by the Lessee under the HVF Lease
that is cured in full on or prior to the fifth Business Day after the
occurrence of such failure) and (II) the Three-Year Notes Legal Final Payment
Date over (b) the aggregate amount, as of the Three-Year Notes Legal Final
Payment Date, of all withdrawals from the Series 2004-1 Reserve
Account made since the date set forth in clause (a) of this subparagraph (C)(ii) or
to be made in respect of the Three-Year Notes Legal Final Payment Date pursuant
to Section 2.03(d) of this Series Supplement and all drawings made since
such date or to be made in respect of the Three-Year Notes Legal Final Payment
Date under the Series 2004-1 Letters of Credit pursuant to
Section 2.03(e) of this Series Supplement; provided, however, that any such withdrawals from the
Series 2004-1 Reserve Account and/or drawings made under the
Series 2004-1 Letters of Credit on account of a Series 2004-1
Lease Interest Payment Deficit resulting from a failure to pay Rent or other
amount payable by the Lessee under the HVF Lease that is cured in full on or
prior to the fifth Business Day after the occurrence of such failure shall be
excluded from this clause (b);

(iii)
on the Business Day immediately preceding the Class A-3 Legal Final
Payment Date, the sum of (x) the Principal Deficit Amount on such Business Day
and (y) the lesser of (1) the amount by which the Series 2004-1
Liquidity Amount (after giving effect to any withdrawals to be made from the
Series 2004-1 Reserve Account pursuant to Section 2.03(d) and
Section 2.5(b)(i) of this Series Supplement and any drawings to be
made under the Series 2004-1 Letters of Credit pursuant to
Section 2.03(e) of this Series Supplement on the Class A-3
Legal Final Payment Date) will exceed the Series 2004-1 Required
Liquidity Amount (after giving effect to all anticipated reductions in the
Series 2004-1 Principal Amount on the Class A-3 Legal
Final Payment Date) and (2) an amount equal to the excess, if any, of
(a) the Series 2004-1 Required Liquidity Amount on the earlier
of (I) the date of the first occurrence of a Series 2004-1 Lease
Interest Payment Deficit (other than any Series 2004-1 Lease
Interest Payment Deficit resulting from a failure to pay Rent or other amount
payable by the Lessee under the HVF Lease that is cured in full on or prior to
the fifth Business Day after the occurrence of such failure) and (II) the
Class A-3 Legal Final Payment Date over (b) the aggregate amount, as
of the Class A-3 Legal Final Payment Date, of all withdrawals from
the Series 2004-1 Reserve Account made since the date set forth in
clause (a) of this subparagraph (C)(iii) or to be made in respect of
the Class A-3 Legal Final Payment Date pursuant to
Section 2.03(d) of this Series Supplement and all drawings made since such
date or to be made in respect of the Class A-3 Legal Final Payment
Date under the

 79
 

Series 2004-1
Letters of Credit pursuant to Section 2.03(e) of this Series Supplement; provided,
however, that any such withdrawals from the Series 2004-1
Reserve Account and/or drawings made under the Series 2004-1 Letters
of Credit on account of a Series 2004-1 Lease Interest Payment
Deficit resulting from a failure to pay Rent or other amount payable by the
Lessee under the HVF Lease that is cured in full on or prior to the fifth
Business Day after the occurrence of such failure shall be excluded from this
clause (b); and

(iv)
on the Business Day immediately preceding the Class A-4 Legal Final
Payment Date, the sum of (x) the Principal Deficit Amount on such Business
Day and (y) an amount equal to the excess, if any, of (a) the
Series 2004-1 Required Liquidity Amount on the earlier of
(I) the date of the first occurrence of a Series 2004-1 Lease
Interest Payment Deficit (other than any Series 2004-1 Lease
Interest Payment Deficit resulting from a failure to pay Rent or other amount
payable by the Lessee under the HVF Lease that is cured in full on or prior to
the fifth Business Day after the occurrence of such failure) and (II) the
Class A-4 Legal Final Payment Date over (b) the aggregate amount, as
of the Class A-4 Legal Final Payment Date, of all withdrawals from
the Series 2004-1 Reserve Account made since the date set forth in
clause (a) of this subparagraph (C)(iv) or to be made in respect of
the Class A-4 Legal Final Payment Date pursuant to
Section 2.03(d) of this Series Supplement and all drawings made since such
date and to be made in respect of the Class A-4 Legal Final Payment
Date under the Series 2004-1 Letters of Credit pursuant to
Section 2.03(e) of this Series Supplement; provided, however, that any such withdrawals from the
Series 2004-1 Reserve Account and/or drawings made under the
Series 2004-1 Letters of Credit on account of a Series 2004-1
Lease Interest Payment Deficit resulting from a failure to pay Rent or other
amount payable by the Lessee under the HVF Lease that is cured in full on or
prior to the fifth Business Day after the occurrence of such failure shall be
excluded from this clause (b),

by presenting to each
Series 2004-1 Non-Ford Letter of Credit Provider a draft accompanied by a
Certificate of Unpaid Demand Note Demand; provided, however that if the Series 2004-1
Non-Ford Cash Collateral Account has been established and funded, the Trustee
shall withdraw from the Series 2004-1 Non-Ford Cash Collateral
Account and deposit in the Series 2004-1 Distribution Account an
amount equal to the lesser of (x) the Series 2004-1 Non-Ford
Cash Collateral Percentage on such Business Day of the least of the amounts set
forth in clause (A), (B) or (C) above and (y) the Series 2004-1
Available Non-Ford Cash Collateral Account Amount on such Business Day and draw
an amount equal to the remainder of such amount on the Series 2004-1
Non-Ford Letters of Credit.  The Trustee
shall deposit, or cause the deposit of, the proceeds of any such draw on the
Series 2004-1 Non-Ford Letters of Credit and the proceeds of any
such withdrawal

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from the Series 2004-1
Non-Ford Cash Collateral Account, into the Series 2004-1 Collection
Account and such proceeds shall be treated as Principal Collections for the
Related Month.

SECTION
2.13.  Reimbursement Obligation.  (A) 
HVF agrees to pay to Ford in accordance with, and solely to the extent
of funds available therefore under, the Indenture:

(i) on and after each date on which a Series
2004-1 Ford Letter of Credit Provider shall pay any Ford LOC Disbursement under
a Series 2004-1 Ford Letter of Credit, an amount equal to such Ford LOC Disbursement;
and

(ii) on and after each date on which any
amount is withdrawn from the Series 2004-1 Ford Cash Collateral Account
pursuant to Section 2.03(e)(Y) or Section 2.05(b)(ii) of this
Series Supplement, an amount equal to the amount of such withdrawal.

(B) Notwithstanding the
foregoing, prior to the earlier of (i) the Class A-4 Legal Final Payment Date
and (ii) the termination of this Series Supplement in accordance with Section
6.13 of this Series Supplement, any amount payable by HVF to Ford pursuant to
Section 2.13(A)(ii) of this Series Supplement shall be paid by HVF by
depositing such amount in the Series 2004-1 Ford Cash Collateral Account.

(C) HVF agrees that Ford
shall be deemed a “Secured Party” under the Base Indenture and the Related
Documents to the extent of Ford Reimbursement Obligations payable by HVF to
Ford.  Ford Reimbursement Obligations
shall be absolute, unconditional and irrevocable, and shall be paid under all
circumstances, including, without limitation, the following circumstances:

(i) any lack of validity
or enforceability of this Series Supplement, the Indenture, any Related
Document or any Series 2004-1 Ford Letter of Credit;

(ii) the existence of any
claim, set-off, defense or other right which HVF may have at any time against
Ford, the Trustee or any other beneficiary or any transferee of any Series
2004-1 Ford Letter of Credit (or any persons or entities for whom the Trustee,
any such beneficiary or any such transferee may be acting), whether in
connection with this Series Supplement, the transactions contemplated hereby or
by the Related Documents or any unrelated transaction;

(iii) any statement or
any other document presented under any Series 2004-1 Ford Letter of Credit
proving to be forged, fraudulent or invalid in any respect or any statement
therein being untrue or inaccurate in any respect;

(iv)  any statement or any other document presented
under any Series 2004-1 Ford Letter of Credit proving to be insufficient in any
respect;

 81

(v)  payment by
a Series 2004-1 Ford Letter of Credit Provider under a Series 2004-1 Ford
Letter of Credit against presentation of a draft or certificate which does not
strictly comply with the terms of such Series 2004-1 Ford Letter of Credit;

(vi)  any non-application
or misapplication by the Trustee of the proceeds of any Ford LOC Disbursement
or any withdrawal from the Series 2004-1 Ford Cash Collateral Account; or

(vii)  any other
circumstance or happening whatsoever, whether or not similar to any of the
foregoing, including, without limitation, any other circumstance that might
otherwise constitute a defense available to, or a discharge of, HVF.

ARTICLE III

Amortization
Events

In addition to the Amortization Events set forth in
Section 9.01 of the Base Indenture, the following shall be Amortization Events
with respect to the Series 2004-1 Notes and shall constitute the
Amortization Events set forth in Section 9.01(j) of the Base Indenture with
respect to the Series 2004-1 Notes:

(a) 
HVF defaults in the payment of any interest on, or other amount payable
in respect of, the Series 2004-1 Notes when the same becomes due and
payable and such default continues for a period of five (5) Business Days;

(b) 
HVF defaults in the payment of any principal of the Series 2004-1
Notes when the same becomes due and payable on the applicable Legal Final
Payment Date;

(c)  a
Series 2004-1 Enhancement Deficiency shall occur and continue for at
least three (3) Business Days or the Series 2004-1 Enhancement
Amount, excluding from the calculation thereof one or more of the following
amounts, shall be less than the Series 2004-1 Required Enhancement
Amount for at least three (3) Business Days:

(i) any cash or Permitted Investments on
deposit in the Series 2004-1 Excess Collection Account, the
Series 2004-1 Cash Collateral Account or the Series 2004-1
Reserve Account if at the time of such calculation (A) such cash or Permitted
Investments on deposit in the Series 2004-1 Excess Collection
Account, the Series 2004-1 Cash Collateral Account or the
Series 2004-1 Reserve Account, as the case may be, cannot be
withdrawn by the Trustee and applied as provided herein because the
Series 2004-1 Excess Collection Account, the Series 2004-1
Cash Collateral Account or the

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Series 2004-1 Reserve Account, as the case may be, shall be
subject to an injunction, estoppel or other stay or (B) the Series 2004-1
Excess Collection Account, the Series 2004-1 Cash Collateral Account
or the Series 2004-1 Reserve Account, as the case may be, shall be
subject to a Lien (other than a Permitted Lien) (each, a “Restrictive Action”);
or

(ii) the amount available to be drawn under
any Series 2004-1 Letter of Credit if at the time of such
calculation (A) such Series 2004-1 Letter of Credit shall not be in
full force and effect, (B) an Event of Bankruptcy shall have occurred with
respect to the Series 2004-1 Letter of Credit Provider of such
Series 2004-1 Letter of Credit or (C) such Series 2004-1
Letter of Credit Provider shall have repudiated such Series 2004-1
Letter of Credit or failed to honor a draw thereon made in accordance with the
terms thereof;

(d) 
the Series 2004-1 Liquidity Amount shall be less than the
Series 2004-1 Required Liquidity Amount for at least three (3)
Business Days or the Series 2004-1 Liquidity Amount, excluding from
the calculation thereof one or more of the following amounts, shall be less
than the Series 2004-1 Required Liquidity Amount for at least three
(3) Business Days:

(i) any cash or Permitted Investments on
deposit in the Series 2004-1 Reserve Account or the Series 2004-1
Cash Collateral Account if at the time of such calculation the Series 2004-1
Reserve Account or the Series 2004-1 Cash Collateral Account, as the
case may be, shall be subject to a Restrictive Action; or

(ii) the amount available to be drawn under
any Series 2004-1 Letter of Credit if at the time of such
calculation (A) such Series 2004-1 Letter of Credit shall not be in
full force and effect, (B) an Event of Bankruptcy shall have occurred with
respect to the Series 2004-1 Letter of Credit Provider of such
Series 2004-1 Letter of Credit or (C) such Series 2004-1
Letter of Credit Provider shall have repudiated such Series 2004-1
Letter of Credit or failed to honor a draw thereon made in accordance with the
terms thereof;

(e) 
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 Payment Date, 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 Payment Date or all principal of and interest on the
Class A-4 Notes is not paid in full on or before the Class A-4
Expected Final Payment Date;

(f) 
any one of the following occurs:

(i) the Series 2004-1 Asset Amount
shall be less than the Series 2004-1 Required Asset Amount for at
least three (3) Business Days or the

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Series 2004-1 Asset Amount, excluding from the calculation
thereof any cash or Permitted Investments on deposit in any HVF Exchange
Account, the Series 2004-1 Excess Collection Account or the
Series 2004-1 Collection Account if at the time of such calculation
such HVF Exchange Account, the Series 2004-1 Excess Collection
Account or the Series 2004-1 Collection Account, as the case may be,
shall be subject to a Restrictive Action, shall be less than the
Series 2004-1 Required Asset Amount for at least three (3) Business
Days;

(ii) the Series 2004-1 Asset
Amount shall be less than the Series 2004-1 Principal Amount for at
least three (3) Business Days or the Series 2004-1 Asset Amount,
excluding from the calculation thereof any cash or Permitted Investments on
deposit in any HVF Exchange Account, the Series 2004-1 Excess
Collection Account or the Series 2004-1 Collection Account if at the
time of such calculation such HVF Exchange Account, the Series 2004-1
Excess Collection Account or the Series 2004-1 Collection Account,
as the case may be, shall be subject to a Restrictive Action, shall be less
than the Series 2004-1 Principal Amount for at least three (3)
Business Days; or

(iii) the Insured Principal Deficit Amount
shall be greater than zero;

(g) 
the Trustee shall make a demand for payment under the Insurance Policy;

(h) 
the occurrence of an Event of Bankruptcy with respect to the Insurer;

(i) 
the Insurer fails to honor a demand for payment made in accordance with
the requirements of the Insurance Policy;

(j) 
the Trustee shall for any reason cease to have a valid and perfected
first priority security interest in the Series 2004-1 Collateral or
any of the Lessee, HVF or any Affiliate of either so asserts in writing;

(k) 
One-Month LIBOR for any Series 2004-1 Interest Rate Period
exceeds 8.90% per annum and HVF fails to acquire Series 2004-1
Interest Rate Hedges satisfying the requirements of Section 2.11 of this Series
Supplement on or prior to the first day of the next succeeding Series 2004-1
Interest Rate Period;

(l) 
HVF fails to comply with any of its other agreements or covenants in, or
provisions of, the Series 2004-1 Notes or the Indenture and the
failure to so comply materially and adversely affects the interests of the
Series 2004-1 Noteholders or the Insurer and continues to materially
and adversely affect the interests of the Series 2004-1 Noteholders
or the Insurer for a period of thirty (30) days after the earlier of
(i) the date on which HVF obtains knowledge thereof or (ii) the date
on which written notice of such failure, requiring the same to be

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remedied, shall have been given to HVF by the Trustee or to HVF and the
Trustee by the Required Noteholders with respect to the Series 2004-1
Notes; or

(m) any representation made by HVF in the
Indenture or any Related Document is false and such false representation
materially and adversely affects the interests of the Series 2004-1
Noteholders or the Insurer and such false representation is not cured for a
period of thirty (30) days after the earlier of (i) the date on which HVF
obtains knowledge thereof or (ii) the date that written notice thereof is
given to HVF by the Trustee or to HVF and the Trustee by the Required
Noteholders with respect to the Series 2004-1 Notes.

In the case of

(i) any event described in clauses (a)
through (i) above, an Amortization Event with respect to the
Series 2004-1 Notes will immediately occur without any notice or
other action on the part of the Trustee or any Series 2004-1
Noteholder or

(ii) any event described in clauses (j)
through (m) above, either the Trustee may, by written notice to HVF or the
Required Noteholders with respect to the Series 2004-1 Notes may, by
written notice to HVF and the Trustee declare that an Amortization Event with
respect to the Series 2004-1 Notes has occurred as of the date of
the notice.

Amortization Events with
respect to the Series 2004-1 Notes described in clauses (h) and
(i) above will not be subject to waiver. 
An Amortization Event with respect to the Series 2004-1 Notes
described in clauses (a) through (g) and clauses (j) through (m) above will be
subject to waiver in accordance with Section 9.04 of the Base Indenture.

ARTICLE IV

Right to Waive Purchase Restrictions

Notwithstanding any
provision to the contrary in the Indenture or the Related Documents, upon the
Trustee’s receipt of notice from HVF (i) to the effect that a Manufacturer
Program is no longer an Eligible Manufacturer Program and that, as a result,
the Series 2004-1 Maximum Non-Eligible Vehicle Amount is or will be
exceeded or (ii) that HVF and the Lessee have determined to increase any
Series 2004-1 Maximum Amount, (each such notice, a “Waiver
Request”), each Series 2004-1 Noteholder may, at its option,
waive the Series 2004-1 Maximum Non-Eligible Vehicle Amount or any
other Series 2004-1 Maximum Amount (collectively, a “Waivable
Amount”) if (i) no Amortization Event exists, (ii) the Required
Noteholders with respect to the

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Series 2004-1
Notes and the Insurer consent to such waiver and (iii) 30 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 deposited into
the Series 2004-1 Excess Collection Account (collectively, the “Designated
Amounts”) from the date the Trustee receives a Waiver Request through the
Consent Period Expiration Date will be held by the Trustee in the
Series 2004-1 Collection Account for ratable distribution as
described below.

Within ten (10) Business
Days after the Trustee receives a Waiver Request, the Trustee shall furnish
notice thereof to the Series 2004-1 Noteholders and the Insurer,
which notice shall be accompanied by a form of consent (each a “Consent”)
in the form of Exhibit E by which the Series 2004-1 Noteholders may,
on or before the Consent Period Expiration Date, consent to waive the applicable
Waivable Amount.  If the Trustee receives
Consents from the Required Noteholders with respect to the Series 2004-1
Notes agreeing to waive the applicable Waivable Amount and the consent of the
Insurer and within forty-five (45) days after the Trustee notifies the
Series 2004-1 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 2004-1 Noteholders, (ii) the Trustee will
distribute the Designated Amounts as set forth below and (iii) the Trustee
shall promptly (but in any event within two days) provide the Rating Agency
with notice of such waiver.  Any
Series 2004-1 Noteholder from whom the Trustee has not received a
Consent on or before the Consent Period Expiration Date will be deemed not to
have consented to such waiver.

If the Trustee receives
Consents from the Required Noteholders with respect to the Series 2004-1
Notes and the consent of the Insurer on or before the Consent Period Expiration
Date, then on the immediately following Payment Date, the Trustee will pay the
Designated Amounts as follows:

(i) to the non-consenting Series 2004-1
Noteholders, if any, pro rata up to the amount required to pay all
Series 2004-1 Notes held by such non-consenting Series 2004-1
Noteholders in full; and

(ii) any remaining Designated Amounts to the
Series 2004-1 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 Payment Date, the
Administrator will deposit into the Series 2004-1 Collection Account
on a daily basis all Designated Amounts collected on such day.  On each following Payment Date, the Trustee
will withdraw a portion of such Designated Amounts from the Series 2004-1

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Collection Account
and deposit the same in the Series 2004-1 Distribution Account for
distribution as follows:

(A) to the non-consenting Series 2004-1
Noteholders, if any, pro rata an amount equal to the Designated Amounts in the
Series 2004-1 Collection Account as of the applicable Determination
Date up to the aggregate outstanding principal balance of the Series 2004-1
Notes held by the non-consenting Series 2004-1 Noteholders; and

(B) any remaining Designated Amounts to the
Series 2004-1 Excess Collection Account.

If the Required
Noteholders with respect to the Series 2004-1 Notes or the Insurer
does not timely consent to such waiver, the Designated Amounts will be
withdrawn from the Series 2004-1 Collection Account and deposited
into the Series 2004-1 Excess Collection Account for distribution in
accordance with the terms of the Indenture and the Related Documents.

In the event that the
Series 2004-1 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 2004-1
Noteholders.

ARTICLE V

Form of Series 2004-1 Notes

SECTION 5.01.  Initial Issuance of Series 2004-1
Investor Notes.  The Series 2004-1
Notes are being offered and sold by HVF pursuant to a Purchase Agreement, dated
March 24, 2004, among HVF, Hertz and Lehman Brothers Inc., as the initial
purchaser.  The Series 2004-1
Notes will be resold initially only to (A) qualified institutional buyers
(as defined in Rule 144A ) (“QIBs”) in reliance on Rule 144A and
(B) Persons other than U.S. Persons (as defined in Regulation S) in
reliance on Regulation S.  Such
Series 2004-1 Notes may thereafter be transferred to QIBs and
purchasers in reliance on Regulation S in accordance with the procedure
described herein.  The Series 2004-1
Notes will be Book-Entry Notes and DTC will be the Depository for the
Series 2004-1 Notes.  The
provisions of the rules and procedures of DTC, the “Operating Procedures of
the Euroclear System” and “Terms and Conditions Governing Use of
Euroclear” and the “General Terms and Conditions of Clearstream Banking”
and “Customer Handbook” of Clearstream (the “Applicable Procedures”)
shall be applicable to transfers of beneficial interests in the
Series 2004-1 Global Notes.

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SECTION
5.02.  Restricted Global Notes.  Each Class of the Series 2004-1
Notes offered and sold in their initial distribution in reliance upon Rule 144A
will be issued in the form of one or more global notes in fully registered
form, without coupons, substantially in the forms set forth in Exhibits A-1-1,
A-2-1, A-3-1 and A-4-1, respectively, registered in the name of Cede, as
nominee of DTC, and deposited with BNY MTC, as custodian of DTC (collectively,
the “Restricted Global Notes”). 
The aggregate initial principal amount of the Restricted Global Notes
may from time to time be increased or decreased by adjustments made on the
records of BNY MTC, as custodian for DTC, in connection with a corresponding
decrease or increase in the aggregate initial principal amount of the
corresponding class of Regulation S Global Notes or the Unrestricted
Global Notes, as hereinafter provided.

SECTION
5.03.  Regulation S Global Notes
and Unrestricted Global Notes.  Each
Class of the Series 2004-1 Notes offered and sold on the
Series 2004-1 Closing Date in reliance upon Regulation S will
be issued in the form of one or more global notes in fully registered form, without
coupons, substantially in the forms set forth in Exhibits A-1-2, A-2-2, A-3-2
and A-4-2, registered in the name of Cede, as nominee of DTC, and deposited
with BNY MTC, as custodian of DTC, for credit to the respective accounts at DTC
of the designated agents holding on behalf of Euroclear and Clearstream.  Until such time as the Restricted Period
shall have terminated, such Series 2004-1 Notes shall be referred to
herein collectively as the “Regulation S Global Notes”.  After such time as the Restricted Period
shall have terminated, such Series 2004-1 Notes shall be
exchangeable, in whole or in part, for interests in one or more permanent
global notes in registered form without interest coupons, substantially in the
forms set forth in Exhibits A-1-3, A-2-3, A-3-3 and A-4-3, as hereinafter
provided (collectively, the “Unrestricted Global Notes”).  The aggregate principal amount of the
Regulation S Global Notes or the Unrestricted Global Notes may from time
to time be increased or decreased by adjustments made on the records of BNY
MTC, as custodian for DTC, in connection with a corresponding decrease or
increase of aggregate principal amount of the corresponding Restricted Global
Notes, as hereinafter provided.

SECTION
5.04.  Definitive Notes.  No Series 2004-1 Note Owner will
receive a Definitive Note representing such Series 2004-1 Note Owner’s
interest in the Series 2004-1 Notes other than in accordance with
Section 2.13 of the Base Indenture.

SECTION
5.05.  Transfer Restrictions.  (a)  A
Series 2004-1 Global Note may not be transferred, in whole or in
part, to any Person other than DTC or a nominee thereof, or to a successor
Depository or to a nominee of a successor Depository, and no such transfer to
any such other Person may be registered; provided, however, that this Section 5.05(a) shall
not prohibit any transfer of a Series 2004-1 Note that is issued in
exchange for a Series 2004-1 Global Note in accordance with
Section 2.13 of the Base Indenture and shall not prohibit any transfer of
a beneficial interest in a Series 2004-1 Global Note effected in
accordance with the other provisions of this Section 5.05.

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(b)  The transfer by a Series 2004-1
Note Owner holding a beneficial interest in a Restricted Global Note to a
Person who wishes to take delivery thereof in the form of a beneficial interest
in the Restricted Global Note shall be made upon the deemed representation of
the transferee that it is purchasing for its own account or an account with
respect to which it exercises sole investment discretion and that it and any
such account is a QIB, and is aware that the sale to it is being made in
reliance on Rule 144A and acknowledges that it has received such information
regarding HVF as such transferee has requested pursuant to Rule 144A or has
determined not to request such information and that it is aware that the
transferor is relying upon its foregoing representations in order to claim the
exemption from registration provided by Rule 144A.

(c)  If a Series 2004-1 Note Owner
holding a beneficial interest in a Restricted Global Note wishes at any time to
exchange its interest in such Restricted Global Note for an interest in the
Regulation S Global Note, or to transfer such interest to a Person who
wishes to take delivery thereof in the form of a beneficial interest in the
Regulation S Global Note, such exchange or transfer may be effected,
subject to the Applicable Procedures, only in accordance with the provisions of
this Section 5.05(c).  Upon receipt
by the Registrar, at the office of the Registrar, of (i) written
instructions given in accordance with the Applicable Procedures from a Clearing
Agency Participant directing the Registrar to credit or cause to be credited to
a specified Clearing Agency Participant’s account a beneficial interest in the
Regulation S Global Note, in a principal amount equal to that of the
beneficial interest in such Restricted Global Note to be so exchanged or
transferred, (ii) a written order given in accordance with the Applicable
Procedures containing information regarding the account of the Clearing Agency
Participant (and the Euroclear or Clearstream account, as the case may be) to
be credited with, and the account of the Clearing Agency Participant to be
debited for, such beneficial interest and (iii) a certificate in substantially
the form set forth in Exhibit F-1 given by the Series 2004-1
Note Owner holding such beneficial interest in such Restricted Global Note, the
Registrar shall instruct BNY MTC, as custodian of DTC, to reduce the principal
amount of the Restricted Global Note, and to increase the principal amount of
the Regulation S Global Note, by the principal amount of the beneficial
interest in such Restricted Global Note to be so exchanged or transferred, and
to credit or cause to be credited to the account of the Person specified in
such instructions (which shall be the Clearing Agency Participant for Euroclear
or Clearstream or both, as the case may be) a beneficial interest in the
Regulation S Global Note having a principal amount equal to the amount by
which the principal amount of such Restricted Global Note was reduced upon such
exchange or transfer.

(d)  If a Series 2004-1 Note Owner
holding a beneficial interest in a Restricted Global Note wishes at any time to
exchange its interest in such Restricted Global Note for an interest in the
Unrestricted Global Note, or to transfer such interest to a Person who wishes
to take delivery thereof in the form of a beneficial interest in the
Unrestricted Global Note, such exchange or transfer may be effected, subject to
the Applicable Procedures, only in accordance with the provisions of this
Section 5.05(d).

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Upon receipt by the Registrar, at the office
of the Registrar, of (A) written instructions given in accordance with the
Applicable Procedures from a Clearing Agency Participant directing the
Registrar to credit or cause to be credited to a specified Clearing Agency
Participant’s account a beneficial interest in the Unrestricted Global Note in
a principal amount equal to that of the beneficial interest in such Restricted
Global Note to be so exchanged or transferred, (ii) a written order given
in accordance with the Applicable Procedures containing information regarding
the account of the Clearing Agency Participant (and the Euroclear or
Clearstream account, as the case may be) to be credited with, and the account
of the Clearing Agency Participant to be debited for, such beneficial interest
and (iii) a certificate in substantially the form of Exhibit F-2
given by the Series 2004-1 Note Owner holding such beneficial
interest in such Restricted Global Note, the Registrar shall instruct BNY MTC,
as custodian of DTC, to reduce the principal amount of such Restricted Global
Note, and to increase the principal amount of the Unrestricted Global Note, by
the principal amount of the beneficial interest in such Restricted Global Note
to be so exchanged or transferred, and to credit or cause to be credited to the
account of the Person specified in such instructions (which shall be the
Clearing Agency Participant for Euroclear or Clearstream or both, as the case
may be) a beneficial interest in the Unrestricted Global Note having a
principal amount equal to the amount by which the principal amount of such
Restricted Global Note was reduced upon such exchange or transfer.

(e)  If a Series 2004-1 Note Owner
holding a beneficial interest in a Regulation S Global Note or an
Unrestricted Global Note wishes at any time to exchange its interest in such
Regulation S Global Note or such Unrestricted Global Note for an interest
in the Restricted Global Note, or to transfer such interest to a Person who
wishes to take delivery thereof in the form of a beneficial interest in the
Restricted Global Note, such exchange or transfer may be effected, subject to
the Applicable Procedures, only in accordance with the provisions of this
Section 5.05(e).  Upon receipt by
the Registrar, at the office of the Registrar, of (i) written instructions
given in accordance with the Applicable Procedures from a Clearing Agency
Participant directing the Registrar to credit or cause to be credited to a
specified Clearing Agency Participant’s account a beneficial interest in the
Restricted Global Note in a principal amount equal to that of the beneficial
interest in such Regulation S Global Note or such Unrestricted Global
Note, as the case may be, to be so exchanged or transferred, (ii) a
written order given in accordance with the Applicable Procedures containing
information regarding the account of the Clearing Agency Participant (and the
Euroclear or Clearstream account, as the case may be) to be credited with, and
the account of the Clearing Agency Participant to be debited for, such
beneficial interest and (iii) with respect to a transfer of a beneficial
interest in such Regulation S Global Note (but not such Unrestricted
Global Note), a certificate in substantially the form set forth in
Exhibit F-3 given by such Series 2004-1 Note Owner
holding such beneficial interest in such Regulation S Global Note, the
Registrar shall instruct BNY MTC, as custodian of DTC, to reduce the principal
amount of such Regulation S Global Note or such Unrestricted Global Note,
as the case may be, and to increase the principal amount of the Restricted
Global Note, by the principal

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amount of the beneficial interest in such
Regulation S Global Note or such Unrestricted Global Note to be so
exchanged or transferred, and to credit or cause to be credited to the account
of the Person specified in such instructions (which shall be the Clearing
Agency Participant for DTC) a beneficial interest in the Restricted Global Note
having a principal amount equal to the amount by which the principal amount of
such Regulation S Global Note or such Unrestricted Global Note, as the
case may be, was reduced upon such exchange or transfer.

(f)  In the event that a Series 2004-1
Global Note or any portion thereof is exchanged for Series 2004-1
Notes other than Series 2004-1 Global Notes, such other
Series 2004-1 Notes may in turn be exchanged (upon transfer or
otherwise) for Series 2004-1 Notes that are not Series 2004-1
Global Notes or for a beneficial interest in a Series 2004-1 Global
Note (if any is then outstanding) only in accordance with such procedures,
which shall be substantially consistent with the provisions of Sections 5.05(a)
through Section 5.05(e) and Section 5.05(g) of this Series Supplement
(including the certification requirement intended to ensure that transfers and
exchanges of beneficial interests in a Series 2004-1 Global Note
comply with Rule 144A or Regulation S under the Securities Act, as the
case may be) and any Applicable Procedures, as may be adopted from time to time
by HVF and the Registrar.

(g)  Until the termination of the Restricted
Period, interests in the Regulation S Global Notes may be held only
through Clearing Agency Participants acting for and on behalf of Euroclear and
Clearstream; provided, that this Section 5.05(g) shall not prohibit any
transfer in accordance with Section 5.05(d) of this Series
Supplement.  After the expiration of the
Restricted Period, interests in the Unrestricted Global Notes may be
transferred without requiring any certifications.

(h)  The Series 2004-1 Notes shall bear
the following legends to the extent indicated:

(i) The
Restricted Notes shall bear the following legend:

THIS NOTE HAS NOT BEEN REGISTERED
UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR WITH ANY STATE SECURITIES LAWS.  THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE
HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH NOTE ONLY (A) TO HVF,
(B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER
THE SECURITIES ACT, (C) FOR SO LONG AS THE NOTES ARE ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO
A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER”
AS DEFINED IN RULE 144A (A “QIB”) THAT PURCHASES FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QIB TO WHOM NOTICE IS GIVEN THAT THE TRANSFER
IS BEING MADE IN

 91
 

RELIANCE ON RULE
144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES
WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT OR (E) PURSUANT TO
ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, SUBJECT TO THE RIGHT OF HVF, PRIOR TO ANY SUCH OFFER, SALE OR
TRANSFER PURSUANT TO CLAUSE (E) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO IT.

(ii) The
Regulation S Global Notes shall bear the following legend:

THIS NOTE HAS NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR WITH ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE OR OTHER
JURISDICTION OF THE UNITED STATES.  UNTIL
40 DAYS AFTER THE ORIGINAL ISSUE DATE OF THE NOTES (THE “RESTRICTED PERIOD”)
IN CONNECTION WITH THE OFFERING OF THE NOTES IN THE UNITED STATES FROM OUTSIDE
OF THE UNITED STATES, THE SALE, PLEDGE OR TRANSFER OF THIS NOTE IS SUBJECT TO
CERTAIN CONDITIONS AND RESTRICTIONS.  THE
HOLDER HEREOF, BY PURCHASING OR OTHERWISE ACQUIRING THIS NOTE, ACKNOWLEDGES
THAT THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT AND AGREES FOR
THE BENEFIT OF HERTZ VEHICLE FINANCING LLC (“HVF”) THAT THIS NOTE MAY BE
TRANSFERRED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH
THE SECURITIES ACT AND OTHER APPLICABLE LAWS OF THE STATES, TERRITORIES AND
POSSESSIONS OF THE UNITED STATES GOVERNING THE OFFER AND SALE OF SECURITIES,
AND PRIOR TO THE EXPIRATION OF THE RESTRICTED PERIOD, ONLY (1) IN AN OFFSHORE
TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT, (2)
PURSUANT TO AND IN ACCORDANCE WITH RULE 144A UNDER THE SECURITIES ACT OR (3) TO
HVF.

(iii) The
Series 2004-1 Global Notes shall bear the following legends:

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

 92
 

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

(iv) The required legends set forth above
shall not be removed from the applicable Series 2004-1 Notes except
as provided herein.  The legend required
for a Restricted Note may be removed from such Restricted Note if there is
delivered to HVF and the Registrar such satisfactory evidence, which may
include an Opinion of Counsel as may be reasonably required by HVF that neither
such legend nor the restrictions on transfer set forth therein are required to
ensure that transfers of such Series 2004-1 Note will not violate
the registration requirements of the Securities Act.  Upon provision of such satisfactory evidence,
the Trustee at the direction of HVF shall authenticate and deliver in exchange
for such Restricted Note a Series 2004-1 Note or Series 2004-1
Notes having an equal aggregate principal amount that does not bear such
legend.  If such a legend required for a
Restricted Note has been removed from a Series 2004-1 Note as
provided above, no other Series 2004-1 Note issued in exchange for
all or any part of such Series 2004-1 Note shall bear such legend,
unless HVF has reasonable cause to believe that such other Series 2004-1
Note is a “restricted security” within the meaning of Rule 144 under the
Securities Act and instructs the Trustee to cause a legend to appear thereon.

ARTICLE VI

General

SECTION
6.01.  Optional Redemption of
Series 2004-1 Notes. 
(a)  HVF may, at its option,
redeem the Class A-1 Notes, the Class A-2 Notes, the
Class A-3 Notes or the Class A-4 Notes as a whole on any
Payment Date on which the Class A-1 Outstanding Principal Amount,
the Class A-2 Outstanding Principal Amount, the Class A-3
Outstanding Principal Amount or the Class A-4 Outstanding Principal
Amount, as the case may be, is equal to or less than 10% of the Initial
Class A-1 Principal Amount, the Initial Class A-2
Principal Amount, the Initial Class A-3 Principal Amount or the
Initial Class A-4 Principal Amount, as the case may be, with funds
deposited in the Series 2004-1 Distribution Account pursuant to
Section 2.02 of this Series Supplement, at 100% of the principal amount
thereof, plus accrued and unpaid interest thereon; provided, however, as a
condition precedent to any redemption, HVF shall pay to the Insurer all

 93
 

Insurer Fees and all other Insurer
Reimbursement Amounts due and payable and to Ford, all unpaid Ford
Reimbursement Obligations.

(b)  If HVF elects to redeem any Class of the
Series 2004-1 Notes pursuant to the provisions of Section 6.01(a),
it shall notify the Trustee in writing at least 30 days prior to the intended
date of redemption of (i) such intended date of redemption, (ii) the
Series 2004-1 Notes subject to redemption and (iii) the
principal amount of the Series 2004-1 Notes to be redeemed.  Upon receipt of a notice of redemption from
HVF, the Trustee shall give notice of such redemption in the manner provided in
Section 13.01 of the Base Indenture to the Series 2004-1
Noteholders of the Series 2004-1 Notes to be redeemed.  Such notice shall be given not less than ten
(10) days prior to the intended date of redemption.

SECTION
6.02.  Information.  On or before the fourth Business Day prior to
each Payment Date (unless otherwise agreed to by the Trustee), HVF shall cause
the Administrator to furnish to the Trustee a Monthly Noteholders’ Statement
with respect to the Series 2004-1 Notes, substantially in the form
of Exhibit G, setting forth, inter alia, the following information:

(i) the total amount available to be
distributed to Series 2004-1 Noteholders on such Payment Date;

(ii) the amount of such distribution
allocable to the payment of principal of each Class of the Series 2004-1
Notes;

(iii) the amount of such distribution
allocable to the payment of interest on each Class of the Series 2004-1
Notes;

(iv) the Class A-1 Carryover
Controlled Amortization Amount, the Class A-2 Carryover Controlled
Amortization Amount, the Class A-3 Carryover Controlled Amortization
Amount or the Class A-4 Carryover Controlled Amortization Amount, if
any, for the Related Month;

(v) the Series 2004-1 Invested
Percentage with respect to Interest Collections and with respect to Principal
Collections for the period from and including the second Determination Date
preceding such Payment Date to but excluding the Determination Date immediately
preceding such Payment Date;

(vi) the Series 2004-1 Enhancement
Amount and the Series 2004-1 Liquidity Amount, in each case, as of
the close of business on the last day of the Related Month;

(vii) whether, to the knowledge of the
Administrator, any Lien exists on any of the Collateral (other than Permitted
Liens);

 94
 

(viii) whether, to the knowledge of the
Administrator, any Operating Lease Event of Default has occurred;

(ix) whether, to the knowledge of the
Administrator, any Amortization Event or Potential Amortization Event with
respect to the Series 2004-1 Notes has occurred;

(x) the Aggregate Asset Amount and the amount
of the Aggregate Asset Amount Deficiency, if any, as of the close of business
on the last day of the Related Month;

(xi) the Non-Eligible Vehicle Amount and the
Non-Eligible Vehicle Percentage as of the close of business on the last day of
the Related Month;

(xii) the Non-Eligible Manufacturer Amount as
of the close of business on the last day of the Related Month;

(xiii) the Series 2004-1 Required
Non-Eligible Vehicle Enhancement Percentage as of the close of business on the
last day of the Related Month and the Non-Program Vehicle Measurement Month
Average, if any, included in the calculation of such Series 2004-1
Required Non-Eligible Vehicle Enhancement Percentage;

(xiv) the Series 2004-1 Required
Enhancement Incremental Amount, if any, as of the close of business on the last
day of the Related Month;

(xv) the Series 2004-1 Required
Liquidity Amount as of the close of business on the last day of the Related
Month and whether the Series 2004-1 Liquidity Amount was less than
the Series 2004-1 Required Liquidity Amount as of the close of
business on the last day of the Related Month;

(xvi) the Series 2004-1 Required
Enhancement Amount as of the close of business on the last day of the Related
Month and whether a Series 2004-1 Enhancement Deficiency existed and
the amount thereof;

(xvii) the Series 2004-1 Required
Overcollateralization Amount and the Series 2004-1
Overcollateralization Amount, in each case, as of the close of business on the
last day of the Related Month;

(xviii) the Series 2004-1 Required
Reserve Account Amount and the Series 2004-1 Available Reserve
Account Amount, in each case, as of the close of business on the last day of
the Related Month;

 95
 

(xix) the percentage of all HVF Vehicles,
with respect to each Manufacturer, as of the close of business on the last day
of the Related Month which were Eligible Program Vehicles manufactured by such
Manufacturer;

(xx) the percentage of all HVF Vehicles, with
respect to each Manufacturer which is not an Eligible Program Manufacturer, as
of the close of business on the last day of the Related Month which were
Program Vehicles manufactured by such Manufacturer; and

(xxi) the percentage of all HVF Vehicles,
with respect to each Manufacturer, as of the close of business on the last day
of the Related Month which were Non-Program Vehicles manufactured by such
Manufacturer.

The Trustee shall provide
to the Series 2004-1 Noteholders, or their designated agent, and the
Insurer copies of each Monthly Noteholders’ Statement.

SECTION
6.03.  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 Regulation S Global Class A-1
  Note

  
	
      Exhibit A-1-3:

  	
   

  	
  Form of Unrestricted Global Class A-1
  Note

  
	
      Exhibit A-2-1:

  	
   

  	
  Form of Restricted Global Class A-2 Note

  
	
      Exhibit A-2-2:

  	
   

  	
  Form of Regulation S Global Class A-2
  Note

  
	
      Exhibit A-2-3: 

  	
   

  	
  Form of Unrestricted Global Class A-2
  Note

  
	
      Exhibit A-3-1:

  	
   

  	
  Form of Restricted Global Class A-3 Note

  
	
      Exhibit A-3-2: 

  	
   

  	
  Form of Regulation S Global Class A-3
  Note

  
	
      Exhibit A-3-3:

  	
   

  	
  Form of Unrestricted Global Class A-3
  Note

  
	
      Exhibit A-4-1: 

  	
   

  	
  Form of Restricted Global Class A-4 Note

  
	
      Exhibit A-4-2:

  	
   

  	
  Form of Regulation S Global Class A-4
  Note

  
	
      Exhibit A-4-3:

  	
   

  	
  Form of Unrestricted Global Class A-4
  Note

  
	
      Exhibit B-1-1:

  	
   

  	
  Form of Series 2004-1 Letter of Credit

  
	
      Exhibit B-1-2:

  	
   

  	
  Form of Series 2004-1 Ford Letter of Credit

  
	
      Exhibit C:

  	
   

  	
  Form of Lease Payment Deficit Notice

  
	
      Exhibit D-1-1:

  	
   

  	
  Form of Reduction Notice

  
	
      Exhibit D-1-2:

  	
   

  	
  Form of Reduction Notice

  
	
      Exhibit D-2-1:

  	
   

  	
  Form of Termination Notice

  
	
      Exhibit D-2-2:

  	
   

  	
  Form of Termination Notice

  
	
      Exhibit E:

  	
   

  	
  Form of Consent

  
	
      Exhibit F-1:

  	
   

  	
  Form of Transfer Certificate

  
	
      Exhibit F-2:

  	
   

  	
  Form of Transfer Certificate

  
	
      Exhibit F-3:

  	
   

  	
  Form of Transfer Certificate

  
	
      Exhibit G:

  	
   

  	
  Form of Monthly Noteholders’ Statement

  
	
     Exhibit H:

  	
   

  	
  Form of Series 2004-1 Demand Note

  

 

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

SECTION
6.05.  Notice to Insurer Rating
Agencies and Ford.  The Trustee shall
provide to the Insurer and each Rating Agency a copy of each notice to the
Series 2004-1 Noteholders, Opinion of Counsel and Officer’s
Certificate delivered to the Trustee pursuant to this Series Supplement or any
other Related Document.  Each such
Opinion of Counsel to be delivered to the Insurer shall be addressed to the
Insurer, shall be from counsel reasonably acceptable to the Insurer and shall
be in form and substance reasonably acceptable to the Insurer.  The Trustee shall provide notice to each
Rating Agency of any consent by the Insurer to the waiver of the occurrence of
any Series 2004-1 Limited Liquidation Event of Default.  In addition, only for so long as the Ford LOC
Exposure Amount is greater than zero, the Trustee shall provide to Ford a copy
of each report, notice and other information provided to the Series 2004-1
Noteholders pursuant to this Series Supplement or any other Related Document.  All such notices, opinions, certificates or
other items to be delivered to the Insurer shall be forwarded to MBIA Insurance
Corporation, 113 King Street, Armonk, New York 10504, Attention:  Insured Portfolio Management – Structured
Finance (IPM-SF) (Hertz Vehicle Financing LLC Series 2004-1 Rental
Car Asset Backed Notes), Facsimile No.: 
(914) 765-3810, Confirmation No.: 
(914) 765-3781.  All such notices,
opinions, certificates or other items to be delivered to Ford shall be
forwarded to Ford Motor Company, 1 American Road, Dearborn, MI 48126 Attention:
Director – Global Banking, Facsimile No. (313) 594-0110.

SECTION
6.06.  Insurer Deemed Series 2004-1
Noteholder and Secured Party.  Except
for any period during which an Insurer Default is continuing, the Insurer shall
be deemed to be the holder of 100% of the Series 2004-1 Notes for
the purposes of giving any consents, waivers, approvals, instructions,
directions, declarations, notices and/or taking any other action pursuant to
the Base Indenture, this Series Supplement and the other Related Documents,
other than the right to waive purchase restrictions pursuant to Article IV
of this Series Supplement.  Any reference
in the Base Indenture or the Related Documents 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 2004-1
Notes, to refer to the rights or interests of the Insurer.  In addition, the Insurer shall constitute an “Enhancement
Provider” with respect to the Series 2004-1 Notes for all purposes
under the Base Indenture, the other Related Documents and the Insurance
Agreement shall constitute an “Enhancement Agreement” with respect to
the Series 2004-1 Notes for all purposes under the Base Indenture
and the other Related Documents. 
Furthermore, the Insurer shall be deemed to be a “Secured Party”
under the Base Indenture and the Related Documents to the extent of amounts
payable to the Insurer pursuant to this Series Supplement.  Moreover, wherever in the Related Documents
money or other property is assigned, conveyed, granted or held for, a filing is

 97
 

made for, action is taken for or agreed to be
taken for, or a representation or warranty is made for, the benefit of the
Series 2004-1 Noteholders, the Insurer shall be deemed to be the
Series 2004-1 Noteholders with respect to 100% of the
Series 2004-1 Notes for such purposes.

SECTION
6.07.  Third Party Beneficiary.  Each of the Insurer and Ford in its capacity
as accountholder of a Series 2004-1 Ford Letter of Credit is an express third
party beneficiary of (i) the Base Indenture to the extent of provisions
relating to any Enhancement Provider, in the case of the Insurer, or to the
extent of the provisions relating to Ford, in the case of Ford and (ii) this
Series Supplement.

SECTION
6.08.  Prior Notice by Trustee to
Insurer.  Subject to
Section 10.01 of the Base Indenture, except for any period during which an
Insurer Default is continuing, 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 2004-1 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 2004-1 Notes (except
those set forth in clauses (h) and (i) of Article III of this Series
Supplement) until after the Trustee has given prior written notice thereof to
the Insurer and obtained the direction of the Insurer.  The Trustee agrees to notify the Insurer promptly
following any exercise of rights or remedies available to it as a result of the
occurrence of an Amortization Event with respect to the Series 2004-1
Notes.

SECTION
6.09.  Subrogation.  In furtherance of and not in limitation of
the Insurer’s equitable right of subrogation, each of the Trustee and HVF
acknowledge that, to the extent of any payment made by the Insurer under the
Insurance Policy with respect to interest on or principal of the
Series 2004-1 Notes, the Insurer 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 2004-1 Noteholders under the
Indenture.  Each of HVF and the Trustee
agree to such subrogation and, further, agree to take such actions as the
Insurer may reasonably request to evidence such subrogation.

Furthermore, in
furtherance of and not in limitation of Ford’s equitable right of subrogation,
each of the Trustee and HVF acknowledge that, to the extent that Ford LOC
Disbursements or amounts on deposit in the Series 2004-1 Ford Cash Collateral
Account are applied to pay interest on or principal of the Series 2004-1 Notes
and Ford has reimbursed the applicable Series 2004-1 Letter of Credit Providers
for such Ford LOC Disbursements or such amounts deposited in the Series 2004-1
Ford Cash Collateral Account, Ford is to be fully subrogated to the extent of
such payment under the Indenture; provided such rights shall be
subordinated in all respects to the rights of subrogation of the Insurer set
forth in the preceding paragraph and to the rights of the Noteholders to the
payment in full of all amounts owing to them under the Indenture. Each of HVF
and the Trustee agree to such subrogation and, further, agree to take such
actions as Ford may reasonably request to evidence such subrogation.

 98
 

SECTION
6.10.  Counterparts.  This Series 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
6.11.  Governing Law.  This Series 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
6.12.  Amendments.  This Series Supplement may be modified or
amended from time to time in accordance with the terms of the Base Indenture,
provided that if, pursuant to the terms of the Base Indenture or this Series
Supplement, the consent of the Required Noteholders is required for an
amendment or modification of this Series Supplement, such requirement shall be
satisfied if such amendment or modification is consented to by the Required
Noteholders with respect to the Series 2004-1 Notes; provided,
further that, if the consent of the Required Noteholders with respect to the
Series 2004-1 Notes is required for a proposed amendment or
modification of this Series Supplement that does not affect in any material
respect one or more Classes of the Series 2004-1 Notes (as evidenced
by an Officer’s Certificate to such effect), then such requirement shall be
satisfied if such amendment or modification is consented to by the
Series 2004-1 Noteholders representing more than 50% of the
aggregate outstanding principal amount of the Classes of the Series 2004-1
Notes affected by such amendment or modification (without the necessity of
obtaining the consent of the Series 2004-1 Noteholders holding the
Classes of the Series 2004-1 Notes not affected by such amendment or
modification).  Only for so long as the
Ford LOC Exposure Amount is greater than zero, any amendment to any provision
of this Series Supplement shall be subject to Section 6.16 of this
Series Supplement.

SECTION
6.13.  Termination of Series Supplement.  This Series Supplement shall cease to be of
further effect when (i) all Outstanding Series 2004-1 Notes
theretofore authenticated and issued have been delivered (other than destroyed,
lost, or stolen Series 2004-1 Notes which have been replaced or
paid) to the Trustee for cancellation, (ii) HVF has paid all sums payable
hereunder, (iii) the Insurer has been paid all Insurer Fees and all other
Insurer Reimbursement Amounts due under the Insurance Agreement, (iv) Ford has
been paid all amounts payable to it hereunder and no amounts are required
hereby to be retained in any Series Account with respect to the Series 2004-1
Notes and (v) the Series 2004-1 Demand Note Payment Amount is
equal to zero or the Series 2004-1 Non-Ford Letter of Credit Liquidity
Amount is equal to zero.

SECTION
6.14.  Discharge of Indenture.  Notwithstanding anything to the contrary
contained in the Base Indenture, so long as this Series Supplement shall be in
effect in accordance with Section 6.13 of this Series Supplement, no discharge
of the Indenture pursuant to Section 11.01(b) of the Base Indenture shall
be effective as to the

 99
 

Series 2004-1 Notes without the
consent of the Required Noteholders with respect to the Series 2004-1
Notes.

SECTION
6.15.  Effect of Payment by Insurer.  Anything in this Series Supplement to the
contrary notwithstanding, any payments of principal of or interest on the
Series 2004-1 Notes that is made with moneys received pursuant to
the terms of the Insurance Policy shall not (except for the purpose of
calculating the Class A-1 Outstanding Principal Amount, the
Class A-2 Outstanding Principal Amount, the Class A-3
Outstanding Principal Amount and the Class A-4 Outstanding Principal
Amount) be considered payment of the Series 2004-1 Notes by the Issuer.  The Trustee acknowledges that, without the
need for any further action on the part of the Insurer, (i) to the extent
the Insurer makes payments, directly or indirectly, on account of principal of
or interest on, the Series 2004-1 Notes to the Trustee for the
benefit of the Series 2004-1 Noteholders or to the Series 2004-1
Noteholders (including any Preference Amounts as defined in the Insurance
Policy), the Insurer will be fully subrogated to the rights of such
Series 2004-1 Noteholders to receive such principal and interest and
will be deemed to the extent of the payments so made to be a Series 2004-1
Noteholder and (ii) the Insurer shall be paid principal and interest in
its capacity as a Series 2004-1 Noteholder until all such payments
by the Insurer have been fully reimbursed, but only from the sources and in the
manner provided in this Series Supplement for payment of such principal and
interest and, in each case, only after the Series 2004-1 Noteholders
have received all payments of principal and interest due to them under this
Series Supplement on the related Payment Date.

SECTION
6.16.  Ford Covenants.  HVF hereby covenants and agrees with Ford
that, only for so long as the Ford LOC Exposure Amount is greater than zero:

(a)  Distributions to HVF.  No amounts will be distributed to HVF
pursuant to any provision of the Indenture if, after giving effect to that
distribution, the Fleet Equity Amount would be less than the Required Minimum
Fleet Equity Amount.

(b)  Inspection of Property, Books and Records.  It will permit representatives of Ford to
visit and inspect any of its properties and to examine any of its books and
records, and to discuss its affairs, finances and accounts with the Servicer
and its officers, directors, employees and independent public accountants all
at such reasonable times and on reasonable notice and as often as may
reasonably be requested (but, prior to the occurrence of a Potential
Amortization Event or an Amortization Event, not more than twice in any year).

(c)  Other Series Supplements.  Each Series Supplement will provide for the
payment of Ford Reimbursement Obligations prior to any distribution or other
release of funds to HVF thereunder and prior to any payment of any termination
payments under Swap Agreements; provided, however, that on or prior to January
6, 2006, the Series 2002-1 Supplement, dated as of September 18, 2002, by and
between HVF and the

 100
 

Trustee, as amended, supplemented or
otherwise modified from time to time, will not be required to provide for any payment
of Ford Reimbursement Obligations.

(d)  No Amendments.  It will not, without the prior written
consent of Ford (which consent shall not be unreasonably withheld or delayed),
(i) extend or otherwise modify the Three-Year Notes Expected Final Payment
Date, the Three-Year Notes Legal Final Payment Date, the Class A-3 Expected
Final Payment Date, the Class A-3 Legal Final Payment Date, the Class A-4
Expected Final Payment Date or the Class A-4 Legal Final Payment Date, (ii)
amend, modify or waive Sections 2.02(d), (e) and (f), 2.03(d)
and (e), 2.05(a), (b), and (d), 2.07(e) and (f),
2.08(b), (c), (e), (f)(I), (g), (h), (i),
(j) and (k), 2.12 and 2.13, 6.05, 6.07,
6.09  6.12, 6.13 and 6.16 of this Series Supplement
or any other provision of the Series 2004-1 Supplement providing for drawings
on the Series 2004-1 Letters of Credit or withdrawals from the Series 2004-1
Reserve Account or the payment by HVF of Ford Reimbursement Obligations or any
terms used in such provisions, (iii) amend, modify or waive the definitions of
Fleet Equity Amount, Fleet Equity Condition or Required Minimum Fleet Equity
Amount, or the effect of the use of those terms to prohibit certain payments;
(iv) amend, modify or waive any of the provisions of any other Series
Supplement providing for the payment by HVF of Ford Reimbursement Obligations,
(v) amend, modify or waive the provisions of Sections 5.2(b) or 5.2(d) of the
Base Indenture or (vi) amend, modify or waive the Base Indenture, enter into
any Series Supplement or amend, modify or waive any Series Supplement in a
manner that provides for an invested percentage calculation that is different
than that contained in the Series Supplements relating to the Series of Notes
being issued on the date hereof.

 101
 

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

	
  

  	
  HERTZ VEHICLE FINANCING LLC,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  
	
   

  	
   

  	
   

  	
  /s/ Robert H.
  Rillings

  	
   

  
	
   

  	
   

  	
   

  	
    Name:Robert H. Rillings

  
	
   

  	
   

  	
   

  	
    Title:Vice President & Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  

  	
  BNY MIDWEST TRUST COMPANY,

  as Trustee,

  	 

	
   

  	
   

  	 

	
   

  	
   

  	
  by

  	 

	
   

  	
   

  	
   

  	
  /s/ Marian
  Onischak

  	
   

  	 

	
   

  	
   

  	
   

  	
    Name:Marian Onischak

  	 

	
   

  	
   

  	
   

  	
    Title:Assistant Vice President

  	 

							

 

 102EXHIBIT
4.9.7

 

 

SECOND AMENDED AND RESTATED MASTER MOTOR VEHICLE OPERATING 

LEASE AND SERVICING AGREEMENT

Dated as of August 1, 2006

between

HERTZ VEHICLE FINANCING LLC

as Lessor

and

THE HERTZ CORPORATION

as Lessee and Servicer

 

Table of Contents

	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1. DEFINITIONS

  	
   

  	
  2

  
	
  2. GENERAL AGREEMENT

  	
   

  	
  2

  
	
  2.1. Lease of
  Vehicles

  	
   

  	
  2

  
	
  2.2.
  Non-Liability of Lessor

  	
   

  	
  2

  
	
  2.3. Return

  	
   

  	
  3

  
	
  2.4. Lessee’s
  Right to Purchase Vehicles

  	
   

  	
  3

  
	
  2.5. Lessor’s
  Right to Cause Vehicles to be Sold

  	
   

  	
  4

  
	
  2.6.
  Redesignation of Vehicles

  	
   

  	
  5

  
	
  2.7. Limitations
  on the Leasing or Redesignation of Certain Vehicles

  	
   

  	
  6

  
	
  2.8. Conditions
  to Each Lease of Vehicle

  	
   

  	
  6

  
	
  2.9. Compliance
  with Master Exchange Agreement

  	
   

  	
  7

  
	
  3. TERM.

  	
   

  	
  7

  
	
  3.1. Vehicle
  Term

  	
   

  	
  7

  
	
  3.2. Term

  	
   

  	
  8

  
	
  4. RENT AND CHARGES

  	
   

  	
  9

  
	
  4.1. Monthly
  Base Rent

  	
   

  	
  9

  
	
  4.2. Monthly
  Variable Rent

  	
   

  	
  9

  
	
  4.3. Rent

  	
   

  	
  9

  
	
  4.4. Monthly
  Base Rent Adjustments

  	
   

  	
  9

  
	
  4.5. Payment of
  Monthly Base Rent

  	
   

  	
  10

  
	
  4.6. Payment of
  Monthly Variable Rent

  	
   

  	
  10

  
	
  4.7. Rejected
  Vehicles

  	
   

  	
  10

  
	
  4.8. Making of
  Payments

  	
   

  	
  10

  
	
  4.9. Billing
  Process

  	
   

  	
  11

  
	
  4.10. Casualty
  Payments

  	
   

  	
  11

  
	
  4.11. Late
  Payment

  	
   

  	
  11

  
	
  4.12.
  Prepayments

  	
   

  	
  11

  
	
  4.13. Net Lease

  	
   

  	
  11

  
	
  5. INSURANCE

  	
   

  	
  12

  
	
  5.1.
  Comprehensive Public Liability, Property Damage, and Catastrophic Physical
  Damage

  	
   

  	
  12

  
	
  5.2. Delivery of
  Certificate of Insurance

  	
   

  	
  13

  
	
  6. RISK OF LOSS; CASUALTY AND INELIGIBLE VEHICLE
  OBLIGATIONS.

  	
   

  	
  13

  
	
  6.1. Risk of
  Loss Borne by Lessees

  	
   

  	
  13

  
	
  6.2. Casualty;
  Ineligible Vehicles

  	
   

  	
  13

  
	
  7. VEHICLE USE

  	
   

  	
  13

  
	
  8. LIENS

  	
   

  	
  14

  
	
  9. NON-DISTURBANCE

  	
   

  	
  14

  
	
  10. FEES; TRAFFIC SUMMONSES; PENALTIES AND FINES

  	
   

  	
  15

  
	
  11. MAINTENANCE AND REPAIRS

  	
   

  	
  15

  
	
  12. VEHICLE WARRANTIES.

  	
   

  	
  15

  
	
  12.1. No Lessor
  Warranties

  	
   

  	
  15

  

 

 i
 

 

	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  12.2. Manufacturer’s
  Warranties

  	
   

  	
  16

  
	
  13. VEHICLE USAGE GUIDELINES AND RETURN; SPECIAL
  DEFAULT PAYMENTS; EARLY TERMINATION PAYMENTS.

  	
   

  	
  16

  
	
  13.1. Usage

  	
   

  	
  16

  
	
  13.2. Return

  	
   

  	
  16

  
	
  13.3. Special
  Default Payments

  	
   

  	
  16

  
	
  13.4. Early
  Termination Payments

  	
   

  	
  17

  
	
  14. DISPOSITION PROCEDURE

  	
   

  	
  17

  
	
  15. ODOMETER DISCLOSURE REQUIREMENT

  	
   

  	
  18

  
	
  16. ASSIGNMENT.

  	
   

  	
  18

  
	
  16.1. Right of
  the Lessor to Assign this Agreement

  	
   

  	
  18

  
	
  16.2.
  Limitations on the Right of the Lessee to Assign this Agreement

  	
   

  	
  18

  
	
  17. DEFAULT AND REMEDIES THEREFOR.

  	
   

  	
  18

  
	
  17.1. Events of
  Default

  	
   

  	
  18

  
	
  17.2. Effect of
  Operating Lease Event of Default

  	
   

  	
  19

  
	
  17.3. Rights of
  Lessor Upon Operating Lease Event of Default

  	
   

  	
  20

  
	
  17.4.
  Liquidation Event of Default, Limited Liquidation Event of Default and
  Non-Performance of Certain Covenants.

  	
   

  	
  21

  
	
  17.5. Measure of
  Damages

  	
   

  	
  21

  
	
  17.6. Vehicle
  Return Default

  	
   

  	
  22

  
	
  17.7. Servicer
  Default

  	
   

  	
  23

  
	
  17.8.
  Application of Proceeds

  	
   

  	
  23

  
	
  18. MANUFACTURER EVENTS OF DEFAULT

  	
   

  	
  23

  
	
  19. CERTIFICATION OF TRADE OR BUSINESS USE

  	
   

  	
  24

  
	
  20. TITLE TO VEHICLES

  	
   

  	
  24

  
	
  21. RIGHTS OF LESSOR ASSIGNED TO TRUSTEE

  	
   

  	
  24

  
	
  22. MODIFICATION AND SEVERABILITY

  	
   

  	
  25

  
	
  23. SERVICER ACTING AS AGENT OF THE LESSOR

  	
   

  	
  25

  
	
  24. MINIMUM DEPRECIATION RATE

  	
   

  	
  25

  
	
  25. CERTAIN REPRESENTATIONS AND WARRANTIES

  	
   

  	
  25

  
	
  25.1.
  Organization; Power; Qualification

  	
   

  	
  25

  
	
  25.2.
  Authorization; Enforceability

  	
   

  	
  26

  
	
  25.3. Compliance

  	
   

  	
  26

  
	
  25.4. Other

  	
   

  	
  26

  
	
  25.5. Financial
  Statements

  	
   

  	
  26

  
	
  25.6. Investment
  Company Act

  	
   

  	
  27

  
	
  25.7.
  Supplemental Documents True and Correct

  	
   

  	
  27

  
	
  25.8.
  Manufacturer Programs

  	
   

  	
  27

  
	
  25.9. ERISA

  	
   

  	
  27

  
	
  25.10.
  Indemnification Agreement

  	
   

  	
  27

  
	
  25.11. Eligible
  Vehicles

  	
   

  	
  28

  
	
  26. CERTAIN AFFIRMATIVE COVENANTS

  	
   

  	
  28

  

 

 ii
 

 

	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  26.1. Corporate Existence;
  Foreign Qualification

  	
   

  	
  28

  
	
  26.2. Books,
  Records and Inspections

  	
   

  	
  28

  
	
  26.3. ERISA

  	
   

  	
  28

  
	
  26.4. Merger

  	
   

  	
  29

  
	
  26.5. Reporting
  Requirements

  	
   

  	
  29

  
	
  26.6.
  Indemnification Agreement

  	
   

  	
  30

  
	
  26.7. Ford
  Program Agreements

  	
   

  	
  30

  
	
  27. NO PETITION

  	
   

  	
  30

  
	
  28. SUBMISSION TO JURISDICTION

  	
   

  	
  31

  
	
  29. GOVERNING LAW

  	
   

  	
  31

  
	
  30. JURY TRIAL

  	
   

  	
  31

  
	
  31. NOTICES

  	
   

  	
  32

  
	
  32. SURVIVABILITY

  	
   

  	
  32

  
	
  33. HEADINGS

  	
   

  	
  33

  
	
  34. EXECUTION IN COUNTERPARTS

  	
   

  	
  33

  

 

 iii

SECOND AMENDED AND RESTATED MASTER MOTOR VEHICLE
OPERATING 

LEASE AND SERVICING AGREEMENT

This Second
Amended and Restated Master Motor Vehicle Operating Lease and Servicing
Agreement (this “Agreement”), dated as of August 1, 2006, by and between
HERTZ VEHICLE FINANCING LLC, a Delaware limited liability company (“HVF”),
as lessor (in such capacity, the “Lessor”) and THE HERTZ CORPORATION, a
Delaware corporation (“Hertz”), as lessee (in such capacity, the “Lessee”)
and as servicer (in such capacity, the “Servicer”).

W I T N E S S E T H:

WHEREAS, HVF and Hertz
entered into a Master Motor Vehicle Operating Lease and
Servicing Agreement, dated as of September 18, 2002, as amended
pursuant to Amendment No. 1 to the Master Motor
Vehicle Operating Lease and Servicing Agreement, dated as of
March 31, 2004, and as amended and restated pursuant to the Amended and Restated Master Motor Vehicle Operating Lease and
Servicing Agreement, dated as of December 21, 2005 (the “Prior
Agreement”);

WHEREAS, HVF and Hertz desire to amend and restate the Prior Agreement
in its entirety as herein set forth;

WHEREAS, the Lessor has purchased or will purchase passenger
automobiles and light duty trucks (the “HGI Vehicles”) from Hertz
General Interest LLC (“HGI”) pursuant to the Purchase Agreement;

WHEREAS, the Lessor has received as a capital contribution from Hertz
all of Hertz’s right, title and interest in and to the Initial Hertz Vehicles
pursuant to the Hertz Contribution Agreement;

WHEREAS, the Lessor has purchased from Hertz Funding Corp. (“HFC”)
all of HFC’s right, title and interest in and to the Service Vehicles
(collectively with the HGI Vehicles and the Initial Hertz Vehicles, the “Vehicles”);

WHEREAS, the Lessor desires to lease to the Lessee and the Lessee
desires to lease from the Lessor the Vehicles for use in connection with the
daily rental car business of the Lessee or in the business of, pursuant to a
sub-lease between the Lessee and Hertz Equipment Rental Corporation (“HERC”),
Lessee’s wholly owned subsidiary, in connection with the daily equipment rental
business of HERC, or by Hertz or HERC’s employees in their personal or
professional capacities;

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

1.  DEFINITIONS. 
Except as otherwise specified, capitalized terms used but not defined
herein shall have the meanings ascribed to such terms in the Definitions List
attached as Schedule 1 to the Amended and Restated Base Indenture, dated
as of December 21, 2005, between HVF, as Issuer, and BNY Midwest Trust
Company, as Trustee, as such indenture may be amended, supplemented, restated
or otherwise modified from time to time in accordance with its terms.

2.  GENERAL AGREEMENT.  The Lessee and the Lessor intend that this
Agreement is a lease and that the relationship between the Lessor and the
Lessee pursuant hereto shall always be only that of lessor and lessee, and the
Lessee hereby declares, acknowledges and agrees that the Lessor is the owner
of, and pursuant to the Nominee Agreement, the Hertz Nominee Agreement or the
HFC Nominee Agreement, the Nominee, the Hertz Nominee or the HFC Nominee, as
applicable, holds legal title to, the Vehicles. 
The Lessee shall not acquire by virtue of this Agreement any right,
equity, title or interest in or to any Vehicles, except the right to use the
same under the terms hereof.  The parties
agree that this Agreement is a “true lease” and agree to treat this Agreement
as a lease for all purposes, including accounting, regulatory and otherwise,
except it will be disregarded for income tax purposes.

2.1.  Lease of Vehicles.  From time to time, subject to the terms and
provisions hereof, the Lessor agrees to lease to the Lessee, and the Lessee
agrees to lease from the Lessor, New Vehicles identified in New Vehicle
Schedules and Transferred Vehicles identified in Transferred Vehicle Schedules,
in each case provided to the Lessor by the Servicer from time to time pursuant
to Sections 1.04 and 1.06 of the Purchase Agreement.  This Agreement, together with the
Manufacturer Programs, the New Vehicle Schedules, the Rejected Vehicle
Schedules, the Transferred Vehicle Schedules, the Initial Hertz Vehicle Schedules,
the Service Vehicle Schedules and any other related documents attached to this
Agreement (collectively, the “Supplemental Documents”), will constitute
the entire agreement regarding the leasing of Vehicles by the Lessor to the
Lessee.

2.2.  Non-Liability of Lessor.  AS BETWEEN THE LESSOR AND THE LESSEE,
ACCEPTANCE FOR LEASE OF THE VEHICLES UNDER THE PURCHASE AGREEMENT SHALL
CONSTITUTE THE LESSEE’S ACKNOWLEDGMENT AND AGREEMENT THAT THE LESSEE HAS FULLY
INSPECTED SUCH VEHICLES, THAT SUCH VEHICLES ARE IN GOOD ORDER AND CONDITION AND
ARE OF THE MANUFACTURE, DESIGN, SPECIFICATIONS AND CAPACITY SELECTED BY THE
LESSEE, THAT THE LESSEE IS SATISFIED THAT THE SAME ARE SUITABLE FOR THIS USE
AND THAT THE LESSOR IS NOT A MANUFACTURER OR ENGAGED IN THE SALE OR DISTRIBUTION
OF VEHICLES, AND HAS NOT MADE AND DOES NOT HEREBY MAKE ANY REPRESENTATION,
WARRANTY OR COVENANT WITH RESPECT TO MERCHANTABILITY, CONDITION, 

QUALITY, DURABILITY OR SUITABILITY OF SUCH
VEHICLE IN ANY RESPECT OR IN CONNECTION WITH OR FOR THE PURPOSES OR USES OF THE
LESSEE, OR ANY OTHER REPRESENTATION, WARRANTY OR COVENANT EXPRESS OR IMPLIED OF
ANY KIND OR CHARACTER, EXPRESS OR IMPLIED, WITH RESPECT THERETO.  THE LESSOR SHALL NOT BE LIABLE FOR ANY
FAILURE TO PERFORM ANY PROVISION HEREOF RESULTING FROM FIRE OR OTHER CASUALTY,
NATURAL DISASTER, RIOT, STRIKE OR OTHER LABOR DIFFICULTY, GOVERNMENTAL
REGULATION OR RESTRICTION, OR ANY CAUSE BEYOND THE LESSOR’S DIRECT
CONTROL.  IN NO EVENT SHALL THE LESSOR BE
LIABLE FOR ANY INCONVENIENCES, LOSS OF PROFITS OR ANY OTHER CONSEQUENTIAL,
INCIDENTAL OR SPECIAL DAMAGES RESULTING FROM ANY DEFECT IN OR ANY THEFT,
DAMAGE, LOSS OR FAILURE OF ANY VEHICLE, AND THERE SHALL BE NO ABATEMENT OF RENT
OR OTHER AMOUNTS PAYABLE HEREUNDER BECAUSE OF THE SAME.

2.3.  Return.  (a)  The
Servicer will act as the Lessor’s agent in returning (as set forth in this
Section 2.3) or otherwise disposing of each Vehicle on the Vehicle
Operating Lease Expiration Date with respect to such Vehicle.

(b)  The Lessee will, subject to
Sections 2.4 and 2.5, return each Program Vehicle (other than a Casualty,
a Rejected Vehicle or a Program Vehicle which has become an Ineligible Vehicle)
to the Servicer in accordance with the requirements of Section 3.1(b), who
upon receipt of such Program Vehicle will return such Program Vehicle to the
nearest related Manufacturer official auction or other facility designated by
such Manufacturer at the Lessee’s sole expense in accordance with the
requirements of Section 3.1(b).

(c)  The Lessee will, subject to
Sections 2.4 and 2.5, return each Non-Program Vehicle to the Servicer not
less than thirty (30) days prior to the Maximum Lease Termination Date
with respect to such Non-Program Vehicle, who upon receipt of such Non-Program
Vehicle will dispose of such Non-Program Vehicle in accordance with the
requirements of Section 2.5(b).

2.4.  Lessee’s Right to Purchase Vehicles.  The Lessee shall have the option, exercisable
with respect to any Vehicle during the Vehicle Term, to purchase such Vehicle
for an amount equal to the greater of (i) the Termination Value or
(ii) the Market Value of such Vehicle, in each case, as of the date such
amount shall be deposited in the Collection Account (the greater of such
amounts being referred to as the “Vehicle Purchase Price”).  In the event the Lessee exercises its option
to purchase any Vehicle, the Lessee shall pay the Vehicle Purchase Price of
such Vehicle to the Lessor on or before the Payment Date with respect to the
Related Month in which the Lessee elects to purchase such Vehicle and the
Lessee will pay on or before such Payment Date all accrued and unpaid Monthly
Base Rent and any Monthly Variable Rent then due and payable with respect to
such Vehicle through such Payment Date. 
Monthly Base Rent and 

Monthly Variable Rent will continue to accrue
with respect to such Vehicle through such Payment Date.  The Lessor shall transfer title to any such
Vehicle to, or shall direct the Nominee, the Hertz Nominee or the HFC Nominee,
as applicable, to transfer title to any such Vehicle to, the Lessee
concurrently with or promptly after the deposit of Vehicle Purchase Price (and
any such unpaid Monthly Base Rent and Monthly Variable Rent) into the
Collection Account.

2.5.  Lessor’s Right to Cause Vehicles to be
Sold.  If the Lessee does not elect
to purchase any Vehicle pursuant to Section 2.4, then:

(a)  The Lessor shall have the
right, at any time with the consent of the Lessee or during the ninety
(90) days prior to the expiration of the Maximum Term for a Program
Vehicle, to direct the Servicer to arrange for the sale of such Program Vehicle
to a third party, if permitted under the related Manufacturer Program, for a
price greater than or equal to the Termination Value of such Program Vehicle,
reduced by the amount of any non-return incentive received by the Lessor or
payable to the Lessor from the Manufacturer in respect of such Program Vehicle
pursuant to such Manufacturer Program if such Manufacturer is an Eligible
Program Manufacturer, on or prior to the Maximum Lease Termination Date with
respect to such Program Vehicle. 
Notwithstanding the disposition of a Program Vehicle pursuant to this
Section 2.5(a)  prior to the end of
a calendar month, the Lessee shall pay to the Lessor all accrued and unpaid
Monthly Base Rent and any Monthly Variable Rent then due and payable with
respect to such Program Vehicle through the Payment Date with respect to the
Related Month during which the Disposition Proceeds of such Program Vehicle are
deposited into the Collection Account, unless such Program Vehicle is a
Casualty or becomes an Ineligible Vehicle, payment for which will be made in
accordance with Section 6.  When a
sale of such Program Vehicle is arranged by the Servicer pursuant to this
Section 2.5(a), (i) the Servicer shall deliver the Vehicle to the
purchaser thereof and (ii) the Servicer shall cause to be deposited into
the Collateral Account the funds paid for such Vehicle by the purchaser.

(b)  The Servicer shall use
commercially reasonable efforts, at its own expense, to arrange for the sale of
each Non-Program Vehicle to a third party for the Vehicle Purchase Price with
respect to such Vehicle on or prior to the Maximum Lease Termination Date with
respect to such Non-Program Vehicle. 
Notwithstanding the disposition of a Non-Program Vehicle by the Servicer
prior to the end of a calendar month, the Lessee shall pay to the Lessor all
accrued and unpaid Monthly Base Rent and any Monthly Variable Rent then due and
payable with respect to such Non-Program Vehicle through the Payment Date with
respect to the Related Month during which the Disposition Proceeds of such
Non-Program Vehicle are deposited into the Collection Account, unless such
Non-Program Vehicle is a Casualty or becomes an Ineligible Vehicle, payment for
which will be made in accordance with Section 6.  When a sale of such Non-Program Vehicle is
arranged by the Servicer pursuant to this Section 2.5(b), (i) the
Servicer shall deliver the Vehicle to the purchaser thereof and (ii) the
Servicer shall cause to be deposited into the Collateral Account the funds paid
for such Vehicle by the purchaser.

(c)  In the event any Vehicle or
Vehicles are not purchased by the Lessee pursuant to Section 2.4, sold to
a third party pursuant to Section 2.5 or returned to a Manufacturer
pursuant to Section 3.1(b), the Servicer shall return such Vehicle to the
Lessor, on the Payment Date with respect to the Related Month in which the
applicable Maximum Lease Termination Date falls, and the Lessee shall pay an
amount equal to all accrued but unpaid Monthly Base Rent and all Monthly
Variable Rent payable with respect to such Vehicles through such Payment Date.

2.6.  Redesignation of Vehicles.  At any time, including without limitation, if
(i) a Program Vehicle becomes ineligible for repurchase by its Manufacturer
or for sale at Auction under the applicable Manufacturer Program or
(ii) the return of a Program Vehicle to the applicable Manufacturer cannot
otherwise be effected for any reason, the Lessor (or the Servicer on its behalf
and at its instruction) may redesignate a Program Vehicle as a Non-Program
Vehicle, provided that, unless such Manufacturer is a Defaulting
Manufacturer, no Amortization Event or Potential Amortization Event with
respect to any Series of Notes Outstanding has occurred and is continuing or
would be caused by such redesignation and provided  further, in
each case, that in connection with such redesignation the Lessor shall
establish a Depreciation Schedule for such redesignated Non-Program Vehicle in
accordance with Section 24 and the Lessee shall pay to the Lessor on the
next succeeding Payment Date an amount equal to the difference, if any, between
the Net Book Value of such Vehicle as of the date of redesignation and an
amount (the “Redesignation Amount”) equal to the Net Book Value of such
Vehicle as of the date of redesignation had such Vehicle been a Non-Program
Vehicle on the Vehicle Operating Lease Commencement Date for such Vehicle
subject to such newly established Depreciation Schedule; provided further,
however, that if a Program Vehicle is redesignated as a Non-Program
Vehicle under the circumstances described in Section 18(b), if
(x) the Manufacturer of such redesignated Non-Program Vehicle assumes the
related Manufacturer Program in accordance with the Bankruptcy Code,
(y) following such assumption, such redesignated Non-Program Vehicle
continues to be eligible under such assumed Manufacturer Program and otherwise
meets the qualifications for Program Vehicles under an Eligible Manufacturer
Program and (z) there are at least thirty (30) days prior to the
expiration of the Maximum Term for a Program Vehicle, the Lessor may
redesignate such Non-Program Vehicle as a Program Vehicle, and, in connection
with such redesignation, future Depreciation Charges in respect of such redesignated
Program Vehicle shall be made in accordance with requirements for Program
Vehicles set forth in the definition of Depreciation Charges and shall pay to
the Lessee on the next succeeding Payment Date the Redesignation Amount paid by
the Lessee to the Lessor in connection with the original designation of such
Vehicle as a Non-Program Vehicle under the circumstances described in
Section 18(b), together with an amount equal to the difference, if any,
between the Net Book Value of such redesignated Program Vehicle as of the date
of redesignation and an amount (the “Assumption Redesignation Amount”)
equal to the Net Book Value of such redesignated Program Vehicle as of the date
of redesignation of such Vehicle as a Program Vehicle had such Vehicle been a
Program Vehicle on the Vehicle Operating Lease Commencement Date for such 

Vehicle and such Vehicle had never been
redesignated from a Program Vehicle to a Non-Program Vehicle; provided  further
that no payment shall be required to be made and no payment may be made by the
Lessor pursuant to the immediately preceding proviso to the extent that an
Amortization Event of Potential Amortization Event exists or would be caused by
such payment.

2.7.  Limitations on the Leasing or
Redesignation of Certain Vehicles. 
The Lessor and the Lessee hereby agree that the Lessor shall not lease
to the Lessee New Vehicles or Transferred Vehicles pursuant to
Section 2.1, the Lessor shall not sell HVF Vehicles to HGI pursuant to
Section 1.06 of the Purchase Agreement and the Lessor shall not
redesignate Program Vehicles as Non-Program Vehicles pursuant to
Section 2.6 if, as of the date of the addition of such New Vehicles or
Transferred Vehicles hereunder, the sale of such HVF Vehicles or such
redesignation, after giving effect to such addition, sale or redesignation,
(a) an Enhancement Deficiency would exist (after giving effect to any
simultaneous voluntary increases in the level of Enhancement permitted under
the Indenture), unless (i) such addition, sale or redesignation would
decrease the amount of, or cure, such Enhancement Deficiency or (ii) in
the case of such redesignation, the Manufacturer of the applicable Vehicle is a
Defaulting Manufacturer or (b) there would be a failure or violation of
any other conditions, requirements or restrictions with respect to the leasing
of Eligible Vehicles under this Agreement as is specified in any Series
Supplement.

2.8.  Conditions to Each Lease of Vehicle.  The agreement of the Lessor to lease any
Vehicle to the Lessee hereunder is subject to the following conditions
precedent being satisfied on or prior to the Vehicle Operating Lease
Commencement Date for such Vehicle.  The
Lessee hereby agrees that each acceptance of a Vehicle under the Purchase
Agreement, the Hertz Contribution Agreement or the HFC Purchase Agreement shall
be deemed to constitute a representation and warranty by the Lessee to the
Lessor and the Trustee that all the conditions precedent to the leasing of such
Vehicle hereunder shall have been satisfied and shall constitute acceptance by
the Lessee of such Vehicle under the Lease as of such Vehicle Operating Lease
Commencement Date:

(a)  No Default.  No Potential Operating Lease Event of Default
or Operating Lease Event of Default shall have occurred and be continuing on
such date or would result from the leasing of such Vehicle hereunder;

(b)  Funding.  HVF shall have sufficient funds available
under the Indenture or otherwise to purchase such Vehicle from HGI or HFC
pursuant to the Purchase Agreement or the HFC Purchase Agreement, respectively;

(c)  Representations and
Warranties.  The representations and
warranties contained in Section 25 are true and correct in all material
respects as of such date;

(d)  Eligible Vehicle.  Such Vehicle is an Eligible Vehicle and
(x) if such Vehicle is being purchased under the HFC Purchase Agreement,
such Vehicle satisfies the 

definition of
Service Vehicle and (y) if such Vehicle is being contributed pursuant to
the Hertz Contribution Agreement, such Vehicle satisfies the definition of
Initial Hertz Vehicle; and

(e)  No Violation of
Section 2.7.  No violation of
Section 2.7 shall have occurred and be continuing on such date or would
result from the leasing of such Vehicle hereunder.

2.9.  Compliance with Master Exchange
Agreement.  In connection with
(x) any return by the Servicer of a Vehicle leased hereunder to a
Manufacturer pursuant to Section 3.1(b), (y) any sale by the Servicer
of a Vehicle leased hereunder to a third party pursuant to Section 2.5 or
(z) other disposition of a Vehicle leased hereunder, the Servicer agrees,
to the extent requested by the Lessor, to cooperate with the Lessor in
effecting such sale or return on behalf of the Lessor pursuant to, and in
accordance with, the terms of the Master Exchange Agreement.

3.  TERM.

3.1.  Vehicle Term.  (a) 
  The “Vehicle Operating Lease Commencement Date” with
respect to any Vehicle shall mean the date referenced in the applicable New
Vehicle Schedule, Transferred Vehicle Schedule, Initial Hertz Vehicle Schedule
or Service Vehicle Schedule with respect to such Vehicle but in no event shall
such date be a date later than the date that funds are expended by HVF to
acquire such Vehicle (such date, the “Vehicle Funding Date” for such
Vehicle).  The “Vehicle Term” with
respect to each Vehicle (other than a Vehicle which has a Special Term) shall
extend from the Vehicle Operating Lease Commencement Date through the earliest
of (i) if such Vehicle is a Program Vehicle returned to a Manufacturer
under a Manufacturer Program, the Turnback Date for such Vehicle, (ii) if
such Vehicle is a Vehicle sold to a third party pursuant to Section 2.5,
the date on which funds in respect of such sale are deposited in the Collection
Account or an HVF Exchange Account (by such third party or by the Servicer on behalf
of such third party), (iii) if such Vehicle is sold to the Lessee pursuant
to Section 2.4, the date on which the Vehicle Purchase Price for such
Vehicle is deposited into the Collection Account, (iv) if such Vehicle
becomes a Casualty or an Ineligible Vehicle, the date funds in the amount of
the Termination Value thereof are deposited in the Collection Account by the
Lessee, (v) if such Vehicle becomes a Transferred HVF Vehicle, the date
funds in the amount of the Transfer Price thereof are deposited in the
Collection Account by HGI, (vi) if such Vehicle becomes a Rejected
Vehicle, the date the Rejected Vehicle Payment is deposited in the Collection
Account and (vii) the date that is the last Business Day of the month that
is 36 months after the month in which the Vehicle Operating Lease
Commencement Date occurs with respect to such Vehicle (the earliest of such
seven dates being referred to as the “Vehicle Operating Lease Expiration
Date” for such Vehicle).  The “Vehicle
Term” with respect to each Vehicle which has a Special Term shall extend
through the earlier of (i) the last date of the Special Term for such
Vehicle as the same may be extended in accordance with the 

following sentence and (ii) the Vehicle
Operating Lease Expiration Date for such Vehicle.  The Special Term shall be automatically
renewed until the date that is the last Business Day of the month that is
36 months after the month in which the Vehicle Operating Lease
Commencement Date occurs with respect to such Vehicle, unless the Lessor or the
Lessee gives prior notice of non-renewal of the Special Term to the Lessor or
the Lessee, as applicable, during the period of any Special Term, or the
Vehicle Operating Lease Expiration Date occurs during the period of any Special
Term.  The “Special Term” shall
mean (i) 180 days with respect to Vehicles titled in the State of
Texas and the State of Maryland; (ii) one year with respect to Vehicles
titled in the State of Illinois; (iii) eleven months with respect to
Vehicles titled in the State of Iowa, the Commonwealth of Massachusetts, the
State of Maine, the State of Vermont and the Commonwealth of Virginia;
(iv) 30 days with respect to Vehicles titled in the State of Nebraska
and the State of West Virginia and (v) 28 days with respect to
Vehicles titled in the State of South Dakota.

(b)  Subject to Sections 2.4
and 2.5(a), the Lessee shall deliver each Program Vehicle to the Servicer for
return to the related Manufacturer in accordance with such Manufacturer Program
(a) not prior to the end of the minimum holding period specified in the
related Manufacturer Program (the “Minimum Term”), (b) not later
than the end of the maximum holding period specified in the related
Manufacturer Program (the “Maximum Term”), and (c) in any event, no
later than the Maximum Lease Termination Date with respect to such
Vehicle.  Upon receipt of a Program
Vehicle for return to the related Manufacturer, the Servicer will return such
Program Vehicle to the nearest related Manufacturer official auction or other
facility designated by such Manufacturer at the Servicer’s expense and
otherwise in accordance with the requirements of the applicable Manufacturer
Program.  If the Lessee delivers a
Program Vehicle to the Servicer for return to the related Manufacturer before
the Minimum Term, the Lessee will make a payment in an amount equal to the
Early Termination Payment to the Lessor in accordance with Section 13.4,
unless such Vehicle is a Casualty or becomes an Ineligible Vehicle, in which
case, the disposition of such Vehicle will be handled in accordance with
Section 6.  If the Lessee delivers a
Program Vehicle to the Servicer for return to the related Manufacturer after
the Maximum Term, the Lessee shall pay to the Lessor the Casualty Payment in
respect of such Vehicle in accordance with Section 6.

3.2.  Term. 
The “Operating Lease Commencement Date” shall mean the Initial
Closing Date.  The “Operating Lease
Expiration Date” shall mean the later of (i) the date of the final
payment in full of the last Note Outstanding and (ii) the Vehicle
Operating Lease Expiration Date for the last Vehicle leased by the Lessee
hereunder.  The “Term” of this
Agreement shall mean the period commencing on the Operating Lease Commencement
Date and ending on the Operating Lease Expiration Date.

4.  RENT AND CHARGES.  The Lessee will pay Rent due and payable on a
monthly basis as set forth in this Section 4.

4.1.  Monthly Base Rent.  The “Monthly Base Rent” for each
Payment Date and each Vehicle shall be the sum of all Depreciation Charges that
have accrued with respect to such Vehicle during the Related Month, as adjusted
in accordance with Section 4.4.

4.2.  Monthly Variable Rent.  The “Monthly Variable Rent” for each
Payment Date and each Vehicle shall equal the sum of (1) the product of
(a) an amount equal to the sum of (i) all interest accruing on each
Series of Notes Outstanding during the Interest Period for such Series of Notes
ending on such Payment Date or on a date immediately preceding such Payment
Date, (ii) all interest due and payable under the HVF Credit Facility as
of such Payment Date and (iii) all Carrying Charges for such Payment Date
multiplied by (b) the quotient obtained by dividing (i) the Net Book
Value as of the last day of the Related Month (or, if earlier, the Disposition
Date) of such Vehicle by (ii) the aggregate Net Book Values as of the last
day of the Related Month (or, if earlier, the Disposition Date) of all Vehicles
leased hereunder during the Related Month plus (2) if such Vehicle
is a Non-Eligible Program Vehicle or a Non-Program Vehicle, 1.50% of the
Net Book Value of such Vehicle as of the last day of the Related Month (or, if
later, as of the Vehicle Operating Lease Commencement Date of such Vehicle) plus
(3) 2% per annum, payable at one-twelfth the annual rate, of the Net Book
Value of such Vehicle as of the last day of the Related Month (or, if later, as
of the Vehicle Operating Lease Commencement Date of such Vehicle).

4.3.  Rent. 
“Rent” for each Vehicle means the Monthly Base Rent plus Monthly
Variable Rent for such Vehicle.

4.4.  Monthly Base Rent Adjustments.  (a)  If
the Vehicle Operating Lease Commencement Date occurs (i) with respect to a
Program Vehicle, prior to the In-Service Date for such Program Vehicle
pursuant to its Manufacturer Program set forth in the Monthly Servicing
Certificate for the Related Month in which such Vehicle Operating Lease
Commencement Date occurs or (ii) with respect to a Non-Program Vehicle,
prior to the date designated as the In-Service Date of such Non-Program
Vehicle set forth in the Monthly Servicing Certificate for the Related Month in
which such Vehicle Operating Lease Commencement Date occurs, the Depreciation
Charges that accrued with respect to such Vehicle between its Vehicle Operating
Lease Commencement Date and its In-Service Date during the Related Month
in which such Vehicle Operating Lease Commencement Date occurs shall be
deducted from the Monthly Base Rent for such Vehicle for the following Payment
Date.

(b)  If the Vehicle Operating
Lease Commencement Date occurs (i) with respect to a Program Vehicle,
after the In-Service Date for such Program Vehicle pursuant to its
Manufacturer Program set forth in the Monthly Servicing Certificate for the
Related Month in which such Vehicle Operating Lease Commencement Date occurs or
(ii) with 

respect to a
Non-Program Vehicle, after the date designated as the In-Service Date of
such Non-Program Vehicle set forth in the Monthly Servicing Certificate for the
Related Month in which such Vehicle Operating Lease Commencement Date occurs,
the Depreciation Charges that accrued with respect to such Non-Program Vehicle
between its In-Service Date and its Vehicle Operating Lease Commencement
Date during the Related Month in which such Vehicle Operating Lease
Commencement Date occurs shall be included in the Monthly Base Rent for such
Vehicle for the following Payment Date.

(c)  If a Program Vehicle is
subject to a Manufacturer Program that calculates Depreciation Charges on a
basis other than a 30-day month, an adjustment shall be made to the
Monthly Base Rent for such Vehicle for the Payment Date following the Related
Month in which the Vehicle Operating Lease Expiration Date for such Program
Vehicle occurs to reconcile the Depreciation Charges that accrued with respect
to such Program Vehicle during the Vehicle Term of such Program Vehicle with
the depreciation charges that accrued with respect to such Program Vehicle
under the applicable Manufacturer Program.

4.5.  Payment of Monthly Base Rent.  On each Payment Date, after giving full credit
for all prepayments on account thereof pursuant to Section 4.12, the
Lessee shall pay to the Lessor the Monthly Base Rent for such Payment Date for
each Vehicle that was leased by the Lessee under this Agreement on any day
during the Related Month.

4.6.  Payment of Monthly Variable Rent.  On each Payment Date, after giving full
credit for all prepayments on account thereof pursuant to Section 4.12,
the Lessee shall pay to the Lessor the Monthly Variable Rent for such Payment
Date for each Vehicle that was leased by the Lessee under this Agreement on any
day during the Related Month.

4.7.  Rejected Vehicles.  If a Vehicle becomes a Rejected Vehicle on
any day during the Related Month and HGI makes the Rejected Vehicle Payment
within five Business Days of the date such Vehicle became a Rejected Vehicle,
Monthly Base Rent shall not be payable by the Lessee in respect of such Vehicle
for the following Payment Date.  If a
payment of Monthly Base Rent is made on the Payment Date during the Related
Month in which a Vehicle becomes a Rejected Vehicle, the amount of such payment
shall be credited to the Lessee on the following Payment Date (such amount
being referred to as a “Rejected Vehicle Credit”).

4.8.  Making of Payments.  All payments of Rent hereunder (and any other
payments hereunder) shall be made by the Lessee to, or for the account of, the
Lessor in immediately available funds, without setoff, counterclaim or
deduction of any kind.  All such payments
shall be deposited into the Collection Account not later than 12:00 noon,
New York City time, on the date due.  If
any payment of Rent (or any other payments hereunder) falls due on a day which
is not a Business Day, then such due date shall be extended to the next
following Business Day and Monthly Variable Rent shall accrue through such
Business Day.  If the Lessee pays 

less than the entire amount of Rent (or any
other amounts) due on any Payment Date, after giving full credit for all
prepayments made with respect to such Payment Date pursuant to Section 4.12,
then the payment received from the Lessee in respect of such Payment Date shall
be first applied to the Monthly Variable Rent due on such Payment Date.

4.9.  Billing Process.  The Servicer shall calculate all Rent,
Casualty Payments, Special Default Payments, Early Termination Payments,
Redesignation Amounts and Rejected Vehicle Credits.  The Servicer shall aggregate the Lessee’s
Rent due on all Vehicles, together with any other amounts due to the Lessor and
any credits owing to the Lessee, and provide to the Lessor a monthly statement
of the total amount, in a form acceptable to the Lessor, no later than the
Determination Date.  The monthly
statement shall include a description of the charges owing from the Lessee and
credits owing to the Lessee.

4.10.  Casualty Payments.  On each Payment Date, after giving full
credit for all prepayments on account thereof pursuant to Section 4.12,
the Lessee shall pay to the Lessor all Casualty Payments and Early Termination
Payments that have accrued with respect to all Vehicles that were leased by the
Lessee as provided in Section 6.2 and Section 13.4.

4.11.  Late Payment.  In the event the Lessee fails to remit
payment of any amount due under this Agreement on or before the Payment Date or
when otherwise due and payable hereunder, the amount not paid will be
considered delinquent and the Lessee will pay a charge equal to
(i) interest payable by HVF on any overdue amounts owed by HVF on its
related obligations, or (ii) if no such interest is due and payable by
HVF, one-month LIBOR plus 1.0%, times the delinquent amount from the
Payment Date until such delinquent amount (with accrued interest) is received
by the Trustee.  “LIBOR” means,
with respect to amounts due and unpaid under this Agreement, the London
Interbank Offered Rate appearing on Page 3750 of the Dow Jones Market
Screen (or on any successor or substitute page of such service or any successor
to or substitute for such screen, providing rate quotations comparable to those
currently provided on such page of such screen) at approximately
11:00 a.m., London time as the rate for dollar deposits with a one-month
maturity that is effective on the date that such amounts are due and unpaid
under this Agreement.

4.12.  Prepayments.  On any date, the Lessee may, at its option,
pay to the Lessor, in whole or in part, any month’s Rent or other payments, or
portion thereof, in advance of the related Payment Date to the extent that such
Rent or other payments have accrued.

4.13.  Net Lease.  THIS AGREEMENT SHALL BE A NET LEASE, AND THE
LESSEE’S OBLIGATION TO PAY ALL RENT AND OTHER SUMS HEREUNDER SHALL BE ABSOLUTE
AND UNCONDITIONAL, AND SHALL NOT BE SUBJECT TO ANY ABATEMENT, SETOFF,
COUNTERCLAIM, DEDUCTION OR REDUCTION FOR ANY REASON 

WHATSOEVER. 
The obligations and liabilities of the Lessee hereunder shall in no way
be released, discharged or otherwise affected (except as may be expressly
provided herein) for any reason, including without limitation: (i) any
defect in the condition, merchantability, quality or fitness for use of the
Vehicles or any part thereof; (ii) any damage to, removal, abandonment,
salvage, loss, scrapping or destruction of or any requisition or taking of the
Vehicles or any part thereof; (iii) any restriction, prevention or
curtailment of or interference with any use of the Vehicles or any part
thereof; (iv) any defect in or any Lien on title to the Vehicles or any
part thereof; (v) any change, waiver, extension, indulgence or other
action or omission in respect of any obligation or liability of the Lessee or
the Lessor; (vi) any bankruptcy, insolvency, reorganization, composition,
adjustment, dissolution, liquidation or other like proceeding relating to the
Lessee, the Lessor or any other Person, or any action taken with respect to
this Agreement by any trustee or receiver of any Person mentioned above, or by
any court; (vii) any claim that the Lessee has or might have against any
Person, including without limitation the Lessor; (viii) any failure on the
part of the Lessor or the Lessee to perform or comply with any of the terms
hereof or of any other agreement; (ix) any invalidity or unenforceability
or disaffirmance of this Agreement or any provision hereof or any of the other
Related Documents or any provision of any thereof, in each case whether against
or by the Lessee or otherwise; (x) any insurance premiums payable by the
Lessee with respect to the Vehicles; or (xi) any other occurrence
whatsoever, whether similar or dissimilar to the foregoing, whether or not the
Lessee shall have notice or knowledge of any of the foregoing and whether or
not foreseen or foreseeable.  This
Agreement shall be noncancellable by the Lessee and, except as expressly
provided herein, the Lessee, to the extent permitted by law, waives all rights
now or hereafter conferred by statute or otherwise to quit, terminate or
surrender this Agreement, or to any diminution or reduction of Rent or other
amounts payable by the Lessee hereunder. 
All payments by the Lessee made hereunder shall be final (except to the
extent of adjustments provided for herein), absent manifest error and, except
as otherwise provided herein, the Lessee shall not seek to recover any such
payment or any part thereof for any reason whatsoever, absent manifest
error.  If for any reason whatsoever this
Agreement shall be terminated in whole or in part by operation of law or
otherwise except as expressly provided herein, the Lessee shall nonetheless pay
an amount equal to all Rent and all other amounts due hereunder at the time and
in the manner that such payments would have become due and payable under the
terms of this Agreement as if it had not been terminated in whole or in
part.  All covenants and agreements of
the Lessee herein shall be performed at its cost, expense and risk unless
expressly otherwise stated.

5.  INSURANCE. 
The Lessee represents that it is and at all times hereunder shall remain
a self-insurer, or will provide insurance, in accordance with all applicable
state law requirements and agrees to maintain or cause to be maintained
insurance/self-insurance coverage in force as follows:

5.1.  Comprehensive Public Liability, Property
Damage, and Catastrophic Physical Damage. 
Comprehensive public liability and property damage protection 

in respect of the possession, condition,
maintenance, operation and use of the Vehicles, in the amount required to meet
the minimum financial responsibility requirements mandated by applicable state
law for each occurrence, and catastrophic physical damage insurance, in an
amount not less than $50,000,000. 
Catastrophic physical damage insurance shall name the Collateral Agent
as loss payee as its interests may appear.

5.2.  Delivery of Certificate of Insurance.  On or prior to the Initial Closing Date, the
Lessee shall deliver to the Lessor, the Trustee and the Collateral Agent a
certificate(s) of insurance/self-insurance as to the items required by
Section 5.1 herein above.  The
Lessee shall not change or cancel such insurance/self-insurance without
giving at least 30 days’ prior written notice to the Lessor, the Trustee
and the Collateral Agent.  Any insurance,
as opposed to self-insurance, obtained by the Lessee shall be obtained from
a  Qualified Insurer only.

6.  RISK OF LOSS; CASUALTY AND INELIGIBLE VEHICLE
OBLIGATIONS.

6.1.  Risk of Loss Borne by Lessees.  Upon payment by the Lessor for each Vehicle,
as between the Lessor and the Lessee, the Lessee assumes and bears the risk of
loss, damage, theft, taking, destruction, attachment, seizure, confiscation or
requisition with respect to such Vehicle, however caused or occasioned, and all
other risks and liabilities, including personal injury or death and property
damage, arising with respect to such Vehicle or the manufacture, purchase,
acceptance, rejection, ownership, delivery, leasing, subleasing, possession,
use, inspection, registration, operation, condition, maintenance, repair,
storage, sale, return or other disposition of such Vehicle, howsoever arising.

6.2.  Casualty; Ineligible Vehicles.  If a Vehicle suffers a Casualty or becomes an
Ineligible Vehicle, then the Lessee will promptly (i) notify the Servicer
thereof and the Servicer shall include notice of such occurrence in the Monthly
Servicing Certificate for the Related Month during which such Vehicle suffered
the Casualty or became an Ineligible Vehicle and (ii) promptly, but in no
event later than the Payment Date with respect to the Related Month during
which such Vehicle suffered a Casualty or became an Ineligible Vehicle, pay to
the Lessor the Termination Value of such Vehicle as of the date such Vehicle
became a Casualty or an Ineligible Vehicle (the “Casualty Payment”).  Upon receipt of the Casualty Payment on or
before the next Payment Date, this Agreement will terminate with respect to
such Vehicle.  Upon receipt of the
Casualty Payment by the Lessor, (i) the Lessor shall cause title to such
Vehicle to be transferred to the Lessee and (ii) the Lessee shall be
entitled to any physical damage insurance proceeds applicable to such Vehicle.

7.  VEHICLE USE. 
The Lessee may use Vehicles leased hereunder in its regular course of
business and the Lessee’s and its subsidiaries’ employees may use Vehicles
leased hereunder in their personal or professional capacities, subject to
Sections 2.5 and 17 hereof and Section 9.2 of the Base
Indenture.  Such use shall be confined
primarily to 

the United States, with limited use in Canada and
Mexico; provided that the principal place of business or rental office
of the Lessee with respect to the Vehicles is located in the United
States.  Subject to the preceding
sentence, the Lessee may, at its sole expense, change the place of principal
location of any Vehicles. 
Notwithstanding the foregoing, no change of location shall be undertaken
unless and until all legal requirements applicable to such Vehicles shall have
been met or obtained.  The Lessee shall
not knowingly use any Vehicles or knowingly permit the same to be used for any
unlawful purpose.  The Lessee shall use
reasonable precautions to prevent loss or damage to Vehicles.  The Lessee shall comply with all applicable
statutes, decrees, ordinances and regulations regarding titling, registering,
leasing, insuring and disposing of Vehicles and shall take reasonable steps to
ensure that operators are licensed.  The
Lessee and the Lessor agree that the Lessee shall perform, at its own expense,
such Vehicle preparation and conditioning services with respect to Vehicles
leased by the Lessee hereunder as are customary.  The Lessor or the Trustee, or any authorized
representative of the Lessor or the Trustee, may during reasonable business
hours from time to time, without disruption of the Lessee’s business, subject
to applicable law, inspect Vehicles wherever they are located.  In addition to its normal daily rental
operations, the Lessee may sublet Vehicles to (A) Person(s) in the
ordinary course of business, so long as (i) the sublease to such Person(s)
is subject to the terms and conditions of this Agreement, (ii) the
Vehicles being subleased are being used in such Person(s)’ daily rental car
business and (iii) the aggregate Net Book Value of the Vehicles being
subleased at any one time is less than ten percent of the aggregate Net Book
Value of all Vehicles being leased under this Agreement at such time, and
(B) to any wholly-owned subsidiary of the Lessee (including HERC), so long
as (i) the sublease of such Vehicles to such wholly-owned subsidiary is
subject to the terms and conditions of this Agreement and expressly states that
it is subordinate in all respects to this Agreement and (ii) the Vehicles
being subleased are being used in such wholly-owned subsidiary’s daily rental
car business or equipment rental business, or by such subsidiary’s employees in
their personal or professional capacities. 
The sublease of any Vehicles permitted by this Section 7 shall not
release the Lessee from any obligations under this Agreement.

8.  LIENS. 
The Lessor may grant security interests in the Vehicles leased by the
Lessee hereunder without consent of the Lessee. 
Except for Permitted Liens, the Lessee shall keep all Vehicles free of all
Liens arising during the Term.  If on the
Vehicle Operating Lease Expiration Date for any Vehicle, there is a Lien on
such Vehicle, the Lessor may, in its discretion, remove such Lien and any sum
of money that may be paid by the Lessor in release or discharge thereof,
including reasonable attorneys’ fees and costs, will be paid by the Lessee upon
demand by the Lessor.

9.  NON-DISTURBANCE.  So long as the Lessee satisfies its
obligations hereunder, its quiet enjoyment, possession and use of the Vehicles
will not be disturbed during the Term subject, however, to Sections 2.5
and 17 hereof and except that the Lessor and the Trustee each retains the
right, but not the duty, to inspect such Vehicles without disturbing the
ordinary conduct of the Lessee’s business. 
Upon the request of the Lessor or the Trustee from time to time, the
Lessee will make reasonable efforts to confirm to the Lessor and the Trustee
the location, mileage and condition of each Vehicle leased by the Lessee
hereunder and to make available for the Lessor’s or the Trustee’s 

inspection within a reasonable time period, not to
exceed 45 days, such Vehicles at the location where such Vehicles are
normally domiciled.  Further, the Lessee
will, during normal business hours and with prior notice of three Business
Days, make its records pertaining to the Vehicles available to the Lessor or
the Trustee for inspection at the location where the Lessee’s records are
normally domiciled.

10.  FEES; TRAFFIC SUMMONSES; PENALTIES AND
FINES.  The Lessee shall be responsible
for the payment of all registration fees, title fees, license fees or other
similar governmental fees and taxes (including the cost of any recording or
registration fees or other similar governmental charges with respect to the
notation on the Certificates of Title of the Vehicles of the interest of the
Collateral Agent), all costs and expenses in connection with the transfer of
title of, or reflection of the interest of any lienholder in, any Vehicle,
traffic summonses, penalties, judgments and fines incurred with respect to any
Vehicle leased hereunder during the Vehicle Term for such Vehicle or imposed
during the Vehicle Term for such Vehicle by any Governmental Authority or any
court of law or equity with respect to such Vehicles in connection with the
Lessee’s operation of such Vehicles. 
Pursuant to the Nominee Agreement, the Hertz Nominee Agreement or the
HFC Nominee Agreement, the Lessor has directed the Nominee or the HFC Nominee,
respectively, to execute a power of attorney to the Servicer to allow the
Servicer to title, register and dispose of the Vehicles leased hereunder in
accordance with the terms hereof. 
Pursuant to the Hertz Nominee Agreement, the Lessor has directed the
Hertz Nominee to execute a power of attorney to the Lessor, and the Lessor has
in turn executed a power of attorney to the Servicer, to allow the Servicer to
title, register and dispose of the Vehicles leased hereunder in accordance with
the terms hereof.

11.  MAINTENANCE AND REPAIRS.  The Lessee shall pay for all maintenance and
repairs to keep the Vehicles in good working order and condition, and the
Lessee will maintain the Vehicles as required in order to keep the Manufacturer’s
warranty in force.  The Lessee will
return Vehicles to an authorized Manufacturer facility or Manufacturer
authorized warranty station for warranty work. 
The Lessee will comply with any Manufacturer’s recall of any
Vehicle.  The Lessee will pay, or cause
to be paid, all usual and routine expenses incurred in the use and operation of
Vehicles including, but not limited to, fuel, lubricants, and coolants.  The Lessee shall not make any material
alterations to any Vehicles without the prior consent of the Lessor.  Any improvements or additions to any Vehicles
shall become and remain the property of the Lessor, except that any addition to
Vehicles made by the Lessee shall remain the property of the Lessee if such
addition can be disconnected from such Vehicles without impairing the
functioning of such Vehicles or its resale value, excluding such addition.

12.  VEHICLE WARRANTIES.

12.1.  No Lessor Warranties.  THE LESSEE ACKNOWLEDGES THAT THE LESSOR IS
NOT THE MANUFACTURER, THE AGENT OF THE MANUFACTURER, OR THE DISTRIBUTOR OF THE
VEHICLES.  THE LESSOR MAKES NO WARRANTY
OR REPRESENTATION, EXPRESS OR IMPLIED, AS TO THE FITNESS, SAFENESS, DESIGN,
MERCHANTABILITY, CONDITION, QUALITY, CAPACITY OR 

WORKMANSHIP OF THE VEHICLES NOR ANY WARRANTY
THAT THE VEHICLES WILL SATISFY THE REQUIREMENTS OF ANY LAW OR ANY CONTRACT
SPECIFICATION, AND AS BETWEEN THE LESSOR AND THE LESSEE, THE LESSEE AGREES TO
BEAR ALL SUCH RISKS AT ITS SOLE COST AND EXPENSE.  THE LESSEE SPECIFICALLY WAIVES ALL RIGHTS TO
MAKE CLAIMS AGAINST THE LESSOR AND ANY VEHICLE FOR BREACH OF ANY WARRANTY OF
ANY KIND WHATSOEVER AND, AS TO THE LESSOR, THE LESSEE LEASES THE VEHICLES “AS
IS.”  IN NO EVENT SHALL THE LESSOR BE
LIABLE FOR SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, WHATSOEVER OR
HOWSOEVER CAUSED.

12.2.  Manufacturer’s Warranties.  If a Vehicle is covered by a Manufacturer’s
warranty, the Lessee, during the Vehicle Term for such Vehicle, shall have the
right to make any claims under such warranty which the Lessor could make.

13.  VEHICLE USAGE GUIDELINES AND RETURN; SPECIAL
DEFAULT PAYMENTS; EARLY TERMINATION PAYMENTS.

13.1.  Usage. 
As used herein, “Vehicle Turn-In Condition” (a) with
respect to each Program Vehicle shall mean the standard established by a set of
criteria for evaluating such Vehicle upon its delivery to the Manufacturer and
shall be determined in accordance with the related Manufacturer Program and
(b) with respect to each Non-Program Vehicle shall mean (i) if such
Non-Program Vehicle is manufactured by the same Manufacturer as any Program
Vehicle leased hereunder, the same standard as required with respect to such Program
Vehicle and (ii) if such Non-Program Vehicle does not satisfy
clause (i) above, such condition that would reasonably be considered to be
normal wear and tear or otherwise de minimis damages by the Manufacturer of
such Vehicle (or its authorized agent) under such Manufacturer’s Manufacturer
Program or, if such Manufacturer does not maintain a Manufacturer Program,
under the Manufacturer Program of another Manufacturer with comparable sales
volume.

13.2.  Return.  The Lessee agrees that the Vehicles will be
in Vehicle Turn-In Condition upon return to the Lessor pursuant to
Section 2.3.  Any rebate or credits
applicable to the unexpired term of any license plates for a Vehicle leased
hereunder shall inure to the benefit of the Lessee.  Each Program Vehicle not meeting the Vehicle
Turn-In Condition under the applicable Manufacturer Program will, unless
redesignated as a Non-Program Vehicle pursuant to Section 2.6, be treated
as a Casualty.  The Lessee will provide
condition report data concerning the Program Vehicles returned to the
Manufacturers during the Related Month to the Lessor in the format set forth on
the Condition Report(s) on the Determination Date.

13.3.  Special Default Payments.  (a)  On
the Determination Date immediately following the receipt of payment of the
Repurchase Price of each 

Program Vehicle from the Manufacturer (or the
receipt of payment of the Repurchase Price of each such Program Vehicle sold
through an auction conducted by or through a Manufacturer) or on the
Determination Date immediately following the date by which the Repurchase Price
of each such Program Vehicle turned back to a Manufacturer would have been paid
if not for a Manufacturer Event of Default, the Servicer will calculate the
amount of any Excess Damage Charges and/or Excess Mileage Charges applicable to
such Program Vehicle pursuant to the applicable Manufacturer Program, and the
Lessee will pay the full amount of such charges to the Lessor on the Payment
Date immediately following such Determination Date (any such charges are
referred to as “Program Vehicle Special Default Payments”).

(b)  On the first Determination
Date following the last day of the Related Month in which the Disposition
Proceeds from the sale or other disposition of any Non-Program Vehicle (other
than a Casualty, a Vehicle that has been purchased by the Lessee pursuant to
Section 2.4 or a Transferred HVF Vehicle) are deposited into a Collateral
Account, the Servicer will calculate, in respect of such Non-Program Vehicle,
an amount equal to the quotient of (i) the sum of all Program Vehicle
Special Default Payments payable by the Lessee on the twelve Payment Dates
preceding such Determination Date divided by (ii) the number of
Program Vehicles that were turned back to Manufacturers or sold through
auctions conducted by or through Manufacturers during the twelve Related Months
respectively preceding such twelve Payment Dates, and the Lessee will pay such
amount to the Lessor on the Payment Date immediately following such
Determination Date (any such charges are referred to as “Non-Program Vehicle
Special Default Payments” and, together with the Program Vehicle Special
Default Payments, the “Special Default Payments”).

13.4.  Early Termination Payments.  If the Lessee turns back any Program Vehicle
to a Manufacturer under its Manufacturer Program before the Minimum Term, on
the Payment Date immediately following the receipt of the Repurchase Price of
such Vehicle from such Manufacturer or on the Payment Date immediately
following the date by which the Repurchase Price would have been paid if not
for a Manufacturer Event of Default, the Lessee will pay the Lessor an amount
equal to the excess, if any, of (x) the Termination Value of such Vehicle
(as of the Turnback Date) over (y) the sum of the Repurchase Price
received with respect to such Vehicle or that would have been received but for
a Manufacturer Event of Default, as applicable, and any Special Default
Payments made by the Lessee in respect of such Vehicle pursuant to
Section 13.3 (any such amount is referred to as an “Early Termination
Payment”).  On each Payment Date, the
Lessee shall pay to the Lessor all Early Termination Payments that have accrued
during the Related Month.  The provisions
of this Section 13.4 will survive the expiration or earlier termination of
the Term.

14.  DISPOSITION PROCEDURE.  The Servicer will comply with the
requirements of law and the requirements of the Manufacturer Programs in
connection with, among other things, the delivery of Certificates of Title and
documents of transfer signed as necessary, signed Condition Reports, and signed
odometer statements to be 

submitted with the Program Vehicles returned to a
Manufacturer pursuant to Section 3.1(b) and accepted by the Manufacturer
or its agent at the time of Program Vehicle return.

15.  ODOMETER DISCLOSURE REQUIREMENT.  The Servicer agrees to comply with all
requirements of law and all Manufacturer Program requirements with respect to
each Vehicle in connection with the transfer of ownership by the Lessor of such
Vehicle, including, without limitation, the submission of any required odometer
disclosure statement at the time of any such transfer of ownership.

16.  ASSIGNMENT.

16.1.  Right of the Lessor to Assign this
Agreement.  The Lessor shall have the
right to finance the acquisition and ownership of Vehicles by selling or
assigning its right, title and interest in this Agreement, including, without
limitation, in moneys due from the Lessee and any third party under this
Agreement, to the Trustee for the benefit of the Noteholders; provided, however,
that any such sale or assignment shall be subject to the rights and interest of
the Lessee in the Vehicles, including but not limited to the Lessee’s right of
quiet and peaceful possession of such Vehicles as set forth in Section 9
hereof, and under this Agreement.

16.2.  Limitations on the Right of the Lessee to
Assign this Agreement.  The Lessee
shall not assign this Agreement or any of its rights hereunder to any other
party; provided, however, that the Lessee may rent the Vehicles
leased hereunder under the terms of its normal daily rental programs, and may
sublease Vehicles pursuant to Section 7. 
Any purported assignment in violation of this Section 16.2 shall be
void and of no force or effect.  Nothing
contained herein shall be deemed to restrict the right of the Lessee to acquire
or dispose of, by purchase, lease, financing, or otherwise, motor vehicles that
are not subject to the provisions of this Agreement.

17.  DEFAULT AND REMEDIES THEREFOR.

17.1.  Events of Default.  Any one or more of the following will
constitute an event of default (an “Operating Lease Event of Default”)
as that term is used herein:

17.1.1.  there occurs a default in the payment of any
Rent or other amount payable by the Lessee under this Agreement for a period of
five Business Days (without giving effect to any payment made with available
Enhancement);

17.1.2.  any unauthorized assignment or transfer of
this Agreement by the Lessee occurs;

17.1.3.  the failure, in any material respect, of the
Lessee to maintain, or cause to be maintained, insurance as required in
Section 5;

17.1.4.  the failure, in a material respect, of the
Lessee to observe or perform any other covenant, condition, agreement or
provision hereof, including, but not limited to, usage, and maintenance, and
such default continues for more than thirty (30) days after the earlier of
the date written notice thereof is delivered by the Lessor or the Trustee to
the Lessee or the Lessee has actual knowledge thereof;

17.1.5.  if any representation or warranty made by the
Lessee herein is inaccurate or incorrect or is breached or is false or
misleading in any material respect as of the date of the making thereof or any
schedule, certificate, financial statement, report, notice, or other writing
furnished by or on behalf of the Lessee to the Lessor or the Trustee is false
or misleading in any material respect on the date as of which the facts therein
set forth are stated or certified, and the circumstance or condition in respect
of which such representation, warranty or writing was inaccurate, incorrect,
breached, false or misleading in any material respect, as the case may be,
shall not have been eliminated or otherwise cured for thirty (30) days
after the earlier of (x) the date of the receipt of written notice thereof
from the Lessor or the Trustee to the Lessee and (y) the date the Lessee
learns of such circumstance or condition;

17.1.6.  an Event of Bankruptcy occurs with respect to
the Lessee;

17.1.7.  this Agreement or any portion thereof ceases
to be in full force and effect or a proceeding shall be commenced by the Lessee
to establish the invalidity or unenforceability of this Agreement;

17.1.8.  a Servicer Default occurs; or

17.1.9.  a Liquidation Event of Default occurs.

17.2.  Effect of Operating Lease Event of
Default.  If any Operating Lease
Event of Default described in Sections 17.1.1, 17.1.2, 17.1.6 or 17.1.9
shall occur, (x) the right of the Lessee to lease additional Vehicles from
the Lessor shall immediately terminate and (y) any accrued and unpaid Rent
and all other payments accrued but unpaid under this Agreement shall
automatically, without further action by the Lessor or the Trustee, become
immediately due and payable and (z) the Lessee shall, at the request of
the Lessor or the Trustee acting at the direction of the Requisite Investors,
return or cause to be returned all Vehicles leased by the Lessee subject to
this Agreement to the Lessor or the Trustee as the case may be in accordance
with the provisions of Section 2.3. 
If any other Operating Lease Event of Default shall occur, (x) the
right of the Lessee to lease additional Vehicles from the Lessor shall
automatically terminate and (y) the Trustee acting at the direction of the
Requisite Investors may declare any accrued and unpaid Rent and all other
payments accrued but unpaid under this Agreement to be due and payable
whereupon such Rent and such other charges, amounts and payments shall become
immediately due and payable.

17.3.  Rights of Lessor Upon Operating Lease
Event of Default.  If an Operating
Lease Event of Default, Limited Liquidation Event of Default or Liquidation
Event of Default shall occur, then the Lessor at its option may:

(i)  in the case of an Operating
Lease Event of Default, proceed by appropriate court action or actions, either
at law or in equity, to enforce performance by the Lessee of the applicable
covenants and terms of this Agreement or to recover damages for the breach
hereof calculated in accordance with Section 17.5; or

(ii)  in the case of a
Liquidation Event of Default, by notice in writing to the Lessee, terminate this
Agreement in its entirety and/or the right of possession hereunder of the
Lessee of any or all Vehicles and the Lessor may direct delivery by the
Servicer of Certificates of Title for the Vehicles to or upon the direction of
the Lessor, whereupon all rights and interests of the Lessee to such Vehicles
will cease and terminate (but the Lessee will remain liable hereunder as herein
provided, provided, however, its liability will be calculated in
accordance with Section 17.5); and, in the case of a Limited Liquidation
Event of Default, the Lessor may, by notice in writing to the Lessee, terminate
the right of possession hereunder of such number of Vehicles as will generate
disposition proceeds in an amount sufficient to pay all principal of and
interest on (and all other amounts due the Holders of) the Series of Notes as
to which the Limited Liquidation Event of Default shall have occurred,
whereupon all rights and interests of the Lessee to such Vehicles will cease
and terminate (but the Lessee will remain liable hereunder as provided, provided,
however that its liability will be calculated in accordance with
Section 17.5).  Upon termination of
the right of possession of the Lessee with respect to any Vehicles, the Lessor
or its agents may peaceably enter upon the premises of the Lessee or other
premises where such Vehicles may be located and take possession of them and
thenceforth hold, possess and enjoy the same free from any right of the Lessee,
or its successors or assigns, to use such Vehicles for any purpose whatsoever,
and the Lessor will, nevertheless, have a right to recover from the Lessee any
and all amounts which under the terms of this Section 17.3 (as limited by
Section 17.5 of this Agreement) as may be then due.  Each and every power and remedy hereby
specifically given to the Lessor will be in addition to every other power and
remedy hereby specifically given or now or hereafter existing at law, in equity
or in bankruptcy and each and every power and remedy may be exercised from time
to time and simultaneously and as often and in such order as may be deemed
expedient by the Lessor; provided, however, that the measure of
damages recoverable against the Lessee will in any case be calculated in
accordance with Section 17.5.  All
such powers and remedies will be cumulative, and the exercise of one will not
be deemed a waiver of the right to exercise any other or others.  No delay or omission of the Lessor in the
exercise of any such power or remedy and no renewal or extension of any
payments due hereunder will impair any such power or remedy or will be
construed to be a waiver of any default or any acquiescence therein.  Any extension of time for payment hereunder
or other indulgence duly granted to the Lessee will not otherwise alter or
affect the Lessor’s rights or the obligations hereunder of the Lessee.  The Lessor’s acceptance of any payment after
it will have become due hereunder will not be deemed to alter or affect the
Lessor’s rights hereunder with respect to any subsequent payments or defaults therein.

17.4.  Liquidation Event of Default, Limited
Liquidation Event of Default and Non-Performance of Certain Covenants.

(i)  If a Liquidation Event of
Default or a Limited Liquidation Event of Default shall have occurred and be
continuing, the Trustee, to the extent provided in the Indenture, shall have
the rights against the Lessee and the Collateral provided in the Indenture and
the Collateral Agency Agreement upon a Liquidation Event of Default or a
Limited Liquidation Event of Default, as the case may be, including the right
to take possession of all or a portion of the Vehicles immediately from the
Lessee.

(ii)  Upon the occurrence of a
Liquidation Event of Default or a Limited Liquidation Event of Default, the
Servicer shall return any or all Program Vehicles to the related Manufacturers
in accordance with the instructions of the Lessor.  To the extent any Manufacturer fails to
accept any such Program Vehicles under the terms of the applicable Manufacturer
Program, the Lessor shall have the right to otherwise dispose of such Program
Vehicles and to direct the Servicer to dispose of such Program Vehicles in
accordance with its instructions.  Upon
the occurrence of a Liquidation Event of Default or a Limited Liquidation Event
of Default, the Servicer shall dispose of any or all Non-Program Vehicles in
accordance with the instructions of the Lessor. 
To the extent the Servicer fails to so dispose of any such Non-Program
Vehicles, the Lessor shall have the right to otherwise dispose of such
Non-Program Vehicles.  In addition,
following the occurrence of a Liquidation Event of Default or a Limited
Liquidation Event of Default, the Lessor shall have all of the rights,
remedies, powers, privileges and claims vis-a-vis the Lessee, necessary or
desirable to allow the Trustee to exercise the rights, remedies, powers,
privileges and claims given to the Trustee pursuant to Sections 3.3 and
9.2 of the Indenture, and the Lessee acknowledges that it has hereby granted to
the Lessor all of the rights, remedies, powers, privileges and claims granted
by the Lessor to the Trustee pursuant to Article 3 of the Indenture and that
the Trustee may act in lieu of the Lessor in the exercise of all such rights,
remedies, powers, privileges and claims.

17.5.  Measure of Damages.  If an Operating Lease Event of Default, a
Limited Liquidation Event of Default or a Liquidation Event of Default occurs
and the Lessor or the Trustee exercises the remedies granted to the Lessor or
the Trustee under this Article 17 or Section 9.2 of the Indenture,
the amount that the Lessor shall be permitted to recover from the Lessee as
payment shall be equal to:

(i)  all accrued and unpaid Rent
for each Vehicle to the earlier of the date of the return to the Lessor of such
Vehicle or disposition by the Servicer of such Vehicle in accordance with the
terms of this Agreement and all other payments payable under this Agreement;
plus

(ii)  any reasonable
out-of-pocket damages and expenses, including reasonable attorneys’ fees and
expenses which the Lessor or the Trustee will have sustained by reason of the
Operating Lease Event of Default, Limited Liquidation Event of Default or
Liquidation Event of Default, together with reasonable sums for such attorneys’
fees and such expenses as will be expended or incurred in the seizure, storage,
rental or sale of the 

Vehicles or in
the enforcement of any right or privilege hereunder or in any consultation or
action in such connection; plus

(iii)  interest from time to time
on amounts due and unpaid under this Agreement at one-month LIBOR plus
1.0% computed from the date of the Operating Lease Event of Default, Limited
Liquidation Event of Default or Liquidation Event of Default or the date
payments were originally due to the Lessor under this Agreement or from the
date of each expenditure by the Lessor or the Trustee, as applicable, which is
recoverable from the Lessee pursuant to this Section 17, as applicable, to
and including the date payments are made by the Lessee.

17.6.  Vehicle Return Default.  If the Lessee fails to comply with the
provisions of (a) Section 2.3 hereof with respect to any Vehicle or
(b) Section 3.1 with respect to returning any Program Vehicles to the
Servicer for return to the related Manufacturer not later than the end of the
Maximum Term (each, a “Vehicle Return Default”), and the Vehicle is not
redesignated as a Non-Program Vehicle in accordance with Section 2.6, then
the Lessor at its option may:

(i)  proceed by appropriate court
action or actions, either at law or equity, to enforce performance by the
Lessee of such covenants and terms of this Agreement or to recover damages for
the breach hereof calculated in accordance with Section 17.5 as it relates
to such Vehicle; or

(ii)  by notice in writing to the
Lessee following the occurrence of such Vehicle Return Default, terminate this
Agreement with respect to such Vehicle and/or the right of possession hereunder
of the Lessee with respect to such Vehicle and the Lessor may direct delivery
by the Servicer of the Certificate of Title to such Vehicle to or upon the
order of the Lessor, whereupon all rights and interests of the Lessee to such
Vehicle will cease and terminate (but the Lessee will remain liable hereunder
as herein provided, provided, however, that its liability will be
calculated in accordance with Section 17.5 as it relates to such Vehicle);
and thereupon the Lessor or its agents may peaceably enter upon the premises of
the Lessee or other premises where the Vehicle may be located and take
possession of it and thenceforth hold, possess and enjoy the same free from any
right of the Lessee or its successors or assigns to use such Vehicle for any
purpose whatsoever and the Lessor will nevertheless have a right to recover
from the Lessee any and all amounts which, under the terms of this Agreement
may then be due; or

(iii)  hold, keep idle or lease
to others such Vehicle, as the Lessor in its sole discretion may determine,
free and clear of any rights of the Lessee without any duty to account to the
Lessee with respect to such action or inaction or for any proceeds with respect
to such action or inaction except that the Lessee’s obligation to pay Monthly
Base Rent for periods commencing after the Lessee shall have been deprived of
the use of such Vehicle pursuant to this clause (iii) shall be reduced by
the net proceeds, if any, received by the Lessor from leasing such Vehicle to
any person other than the Lessee for the same period or any portion thereof; or

(iv)  whether or not the Lessor
shall have exercised or shall thereafter exercise any of the rights under the
foregoing clauses (i), (ii) or (iii), demand by written notice to the
Lessee that it pay to the Lessor immediately, and it shall so pay to the
Lessor, the Casualty Payment with respect to such Vehicle in accordance with
Section 6 hereof.

(v)  if the Lessor shall have
sold any Vehicle repossessed by the Lessor pursuant to clause (ii) above,
the Lessor in lieu of exercising its rights under clause (iv) above with
respect to such Vehicle may, if it shall so elect, demand that the Lessee pay
to the Lessor and the Lessee shall pay to the Lessor on the date of such sale
as liquidated damages for loss of a bargain and not as a penalty, any unpaid
Rent due through such date of sale plus the amount of any deficiency between
the net proceeds of such sale and the Termination Value of such Vehicle
computed as of the date of the sale.

17.7.  Servicer Default.  Any of the following events will constitute a
default of the Servicer (“Servicer Default”) as that term is used
herein:  (i) the failure in a
material respect of the Servicer to comply with or perform any provision of
this Agreement or any other Related Document, and such default continues for
more than thirty (30) days after the earlier of the date written notice is
delivered by the Lessor or the Trustee to the Servicer or the Servicer has
actual knowledge thereof; (ii) an Event of Bankruptcy occurs with respect
to the Servicer; (iii) the failure of the Servicer to make any payment
when due from it hereunder or under any of the other Related Documents or to
deposit any Collections received by it into a Collateral Account when required
under the Related Documents and, in each case, such failure continues for
5 Business Days; or (iv) if any representation or warranty made by
the Servicer in any Related Document is inaccurate or incorrect or is breached
or is false or misleading in any material respect as of the date of the making
thereof or any schedule, certificate, financial statement, report, notice, or
other writing furnished by or on behalf of the Servicer to the Lessor or the
Trustee pursuant to any Related Document is false or misleading in any material
respect on the date as of which the facts therein set forth are stated or
certified, and the circumstance or condition in respect of which such
representation, warranty or writing was inaccurate, incorrect, breached, false
or misleading in any material respect, as the case may be, shall not have been
eliminated or otherwise cured for thirty (30) days after the earlier of
(x) the date of the receipt of written notice thereof from the Lessor or
the Trustee to the Servicer and (y) the date the Servicer learns of such
circumstance or condition.  In the event
of a Servicer Default, the Trustee, acting pursuant to Section 8.7(b) of
the Indenture, shall have the right to replace the Servicer as servicer.

17.8.  Application of Proceeds.  The proceeds of any sale or other disposition
pursuant to Section 17.2, 17.3 or 17.6 shall be applied by the Lessor in
its sole discretion as the Lessor deems appropriate.

18.  MANUFACTURER EVENTS OF DEFAULT.  (a) 
Upon the occurrence of a Manufacturer Event of Default with respect to
any Manufacturer (a “Defaulting Manufacturer”), the Lessor shall no
longer purchase Program Vehicles from such Defaulting Manufacturer pursuant to
the Purchase Agreement.

(b)  Upon the occurrence of a
Manufacturer Event of Default, the Servicer agrees to (i) act at the
direction of the Lessor or the Trustee to take commercially reasonable action
to liquidate the Program Vehicles subject to a Manufacturer Program with
respect to which such Manufacturer Event of Default has occurred or
(ii) convert such Program Vehicles to Non-Program Vehicles in accordance
with Section 2.6 and subject to the limitations set forth therein.

(c)  Upon the occurrence of a
Manufacturer Event of Default, the Lessee shall not be liable for any failure
by the Lessor to recover all or any portion of the Repurchase Price with
respect to any Program Vehicles subject to the Manufacturer Program of the
Defaulting Manufacturer; provided, however, that nothing in this
Section 18 shall be construed to modify, terminate or otherwise affect the
Lessee’s obligations under this Agreement.

19.  CERTIFICATION OF TRADE OR BUSINESS USE.  The Lessee hereby warrants and certifies,
under penalties of perjury, that it intends to use the Vehicles which are
subject to this Agreement in its trade or business.

20.  TITLE TO VEHICLES.  This is an agreement to lease only and title
to Vehicles will at all times remain in the Lessor, the Nominee, the Hertz
Nominee or the HFC Nominee, as applicable, and beneficial ownership will at all
times remain in the Lessor.  The Lessee
will not have any rights or interest in Vehicles whatsoever other than the
right of possession and use as provided by this Agreement.

21.  RIGHTS OF LESSOR ASSIGNED TO TRUSTEE.  The Lessee acknowledges that the Lessor has
assigned or will assign all of its rights under this Agreement to the Trustee
pursuant to the Indenture.  Accordingly,
the Lessee agrees that:

(i)  subject to the terms of the
Indenture, the Trustee shall have all the rights, powers, privileges and
remedies of the Lessor hereunder and the Lessee’s obligations hereunder
(including the payment of Rent and all other amounts payable hereunder) shall
not be subject to any claim or defense which the Lessee may have against the
Lessor (other than the defense of payment actually made) and shall be absolute
and unconditional and shall not be subject to any abatement, setoff,
counterclaim, deduction or reduction for any reason whatsoever.  Specifically, the Lessee agrees that, upon
the occurrence of an Operating Lease Event of Default, a Limited Liquidation
Event of Default or a Liquidation Event of Default, the Trustee may exercise (for
and on behalf of the Lessor) any right or remedy against the Lessee provided
for herein and the Lessee will not interpose as a defense that such claim
should have been asserted by the Lessor;

(ii)  Upon the delivery by the
Trustee of any notice to the Lessee stating that an Operating Lease Event of
Default, Liquidation Event of Default or Limited Liquidation Event of Default
has occurred, the Lessee will, if so requested by the Trustee, treat the
Trustee for all purposes as the Lessor hereunder and in all respects comply
with all obligations under this Agreement that are asserted by the Trustee, as
the Lessor hereunder, irrespective of whether the Lessee has received any such
notice from the Lessor; and

(iii)  The Lessee acknowledges
that pursuant to this Agreement it has agreed to make all payments of Rent
hereunder (and any other payments hereunder) directly to the Trustee for
deposit in the Collection Account.

22.  MODIFICATION AND SEVERABILITY.  The terms of this Agreement will not be
waived, altered, modified, amended, supplemented or terminated in any manner
whatsoever unless (i) the same shall be in writing and signed and
delivered by the Lessor, the Servicer and the Lessee and consented to in
writing by the Trustee and (ii) the Rating Agency Condition with respect
to each Series of Notes Outstanding shall have been satisfied with respect to
such amendment.  If any part of this
Agreement is not valid or enforceable according to law, all other parts will
remain enforceable.

23.  SERVICER ACTING AS AGENT OF THE LESSOR.  The parties to this Agreement acknowledge and
agree that Hertz acts as Servicer of the Lessor pursuant to this Agreement,
and, in such capacity, as the agent of the Lessor, for purposes of performing
certain duties of the Lessor under this Agreement and the Related Documents.  As compensation for the Servicer’s performance
of such duties, the Lessor shall pay to the Servicer on each Payment Date
(i) a fee (the “Monthly Servicing Fee”) equal to .50% per annum,
payable at one-twelfth the annual rate, on the outstanding Net Book Value of
the Vehicles as of the last day of the preceding calendar month and
(ii) the reasonable costs and expenses of the Servicer incurred by it as a
result of arranging for the sale of Vehicles returned to the Lessor in
accordance with Section 2.3(a) or as a result of a Vehicle Return Default
and sold to third parties; provided, however, that such costs and
expenses shall only be payable to the Servicer to the extent of any excess of
the sale price received by the Lessor for any such Vehicle over the Termination
Value thereof.

24.  MINIMUM DEPRECIATION RATE.  The Lessor agrees that the Depreciation
Schedules with respect to Non-Program Vehicles leased under this Agreement
shall be established such that (i) the Depreciation Charges accruing with
respect to each Non-Program Vehicle during each Related Month shall be at least
equal to 1.25%, and (ii) the weighted average of the Depreciation Charges
accruing with respect to all Non-Program Vehicles during each Related Month
shall be at least equal to the lesser of (a) 1.50% and (b) such lower
percentage in respect of which the Rating Agency Condition with respect to each
Series of Notes Outstanding shall have been satisfied.

25.  CERTAIN REPRESENTATIONS AND WARRANTIES.  The Lessee represents and warrants to the Lessor
and the Trustee that as of the Restatement Effective Date, as of each Vehicle
Operating Lease Commencement Date and as of each Closing Date with respect to
each subsequent Series of Notes:

25.1.  Organization; Power; Qualification.  The Lessee has been duly incorporated and is
validly existing as a corporation in good standing under the laws of the State
of Delaware, with corporate power under the laws of such State to execute and
deliver this Agreement and the other Related Documents to which it is a party
and to perform its obligations hereunder and thereunder, and is duly qualified
and in good standing to do business as a foreign corporation in each 

jurisdiction where the character of its
properties or the nature of its business makes such qualification necessary and
where the failure to do so would reasonably be expected to result in a Material
Adverse Effect.

25.2.  Authorization; Enforceability.  Each of this Agreement and the other Related
Documents to which it is a party has been duly authorized, executed and
delivered on behalf of the Lessee and, assuming due authorization, execution
and delivery by the other parties hereto or thereto, is a valid and legally
binding agreement of the Lessee enforceable against the Lessee in accordance
with its terms (except as such enforceability may be limited by bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and other similar
laws affecting creditors’ rights generally or by general equitable principles,
whether considered in a proceeding at law or in equity or by an implied
covenant of good faith and fair dealing).

25.3.  Compliance.  The execution, delivery and performance by
the Lessee of this Agreement and the Related Documents will not conflict with
or result in a breach of any of the terms or provisions of, or constitute a
default under, or result in the creation or imposition of any lien, charge or
encumbrance upon any of the property or assets of the Lessee pursuant to the
terms of, any indenture, mortgage, deed of trust, loan agreement, guarantee,
lease financing agreement or other similar agreement or instrument under which
the Lessee is a debtor or guarantor (except to the extent that such conflict,
breach, creation or imposition is not reasonably likely to have a Material Adverse
Effect) nor will such action result in a violation of any provision of
applicable law or regulation (except to the extent that such violation is not
reasonably likely to result in a Material Adverse Effect) or of the provisions
of the certificate of incorporation or the by-laws of the Lessee.

25.4.  Other. 
There is no consent, approval, authorization, order, registration or
qualification of or with any Governmental Authority having jurisdiction over
the Lessee which is required for, and the absence of which would materially
affect, the execution, delivery and performance of this Agreement or the
Related Documents.

25.5.  Financial Statements.  (a) 
The Lessee has furnished each of the Lessor and the Trustee with, and
the Lessor and the Trustee hereby acknowledge receipt of, a copy of the Lessee’s
Annual Report to the Securities and Exchange Commission (the “SEC”) on
Form 10-K for the year ended December 31, 2004 (the “10-K
Report”).  The financial statements
set forth in such report present fairly in all material respects the
consolidated financial position of the Lessee and its consolidated subsidiaries
at December 31, 2004 and 2003, and the consolidated results of operations
and cash flows for each of the three years in the period ended December 31,
2004, in conformity with generally accepted accounting principles in the United
States.

(b)  The Lessee has furnished
each of the Lessor and the Trustee with, and the Lessor and the Trustee hereby
acknowledge receipt of, a copy of the Lessee’s Quarterly 

Report to the
SEC on Form 10-Q for the quarter ended September 30, 2005 (the “10-Q
Report”).  The financial statements
set forth in such report present fairly in all material respects the
consolidated financial position of the Lessee and its consolidated subsidiaries
at September 30, 2005 and the consolidated results of operations and cash
flows of the Lessee and its consolidated subsidiaries for the quarterly period
ended September 30, 2005, in conformity with generally accepted accounting
principles in the United States.

(c)  As of the date of this
Agreement there has not occurred any material adverse change in the financial
position of the Lessee and its subsidiaries considered as a whole, since
December 31, 2004, other than as set forth or contemplated in the 10-K
Report or the 10-Q Report.

(d)  The financial data which
shall be delivered to the Lessor and the Trustee pursuant to Section 26.5
will be prepared in conformity with generally accepted accounting principles in
the United States and will present fairly in all material respects the
financial condition of the Lessee as of the dates thereof and the results of
its operations for the periods covered thereby.

25.6.  Investment Company Act.  The Lessee is not an “investment company” or
a company “controlled” by an “investment company” within the meaning of the
Investment Company Act of 1940, as amended, and the Lessee is not subject to
any other statute which would impair or restrict its ability to perform its
obligations under this Agreement or the other Related Documents, and neither
the entering into or performance by the Lessee of this Agreement violates any
provision of such Act.

25.7.  Supplemental Documents True and Correct.  All information contained in any material
Supplemental Document which has been submitted, or which may hereafter be
submitted by the Lessee to the Lessor is, or will be, true, correct and
complete in all material respects.

25.8.  Manufacturer Programs.  No Manufacturer Event of Default has occurred
and is continuing with respect to any Manufacturer of an Eligible Program
Vehicle.

25.9.  ERISA. 
The Lessee has satisfied the minimum funding standards under ERISA with
respect to its Plans and is in compliance in all material respects with the
currently applicable provisions of ERISA.

25.10.  Indemnification Agreement.  The Indemnification Agreement is in full
force and effect, and is a valid and legally binding agreement of the Lessee
enforceable against the Lessee in accordance with its terms (except as such
enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other similar laws affecting creditors’ rights
generally or by general equitable principles, whether considered in a
proceeding at law or in equity and by an implied covenant of good faith and
fair dealing).

25.11.  Eligible Vehicles.  Each Vehicle is or will be, as the case may
be, on the applicable Vehicle Operating Lease Commencement Date, an Eligible
Vehicle.

26.  CERTAIN AFFIRMATIVE COVENANTS.  Until the expiration or termination of this
Agreement, and thereafter until the obligations of the Lessee under this
Agreement and the Related Documents are satisfied in full, the Lessee covenants
and agrees that, unless at any time the Lessor and the Trustee shall otherwise
expressly consent in writing, it will:

26.1.  Corporate Existence; Foreign Qualification.  Do and cause to be done at all times all
things necessary to (i) maintain and preserve its corporate existence;
(ii) be, and ensure that it is, duly qualified to do business and in good
standing as a foreign corporation in each jurisdiction where the character of
its properties or the nature of its business makes such qualification necessary
and where the failure to so qualify would be reasonably expected to result in a
Material Adverse Effect; and (iii) comply with all Contractual Obligations
and Requirements of Law binding upon it, except to the extent that the failure
to comply therewith would not, in the aggregate, be reasonably expected to
result in a Material Adverse Effect.

26.2.  Books, Records and Inspections.  (i) Maintain complete and accurate books
and records with respect to the Vehicles leased by it under this Agreement and
the other HVF Vehicle Collateral and (ii) at any time and from time to
time during regular business hours, upon not less than reasonable prior notice
from the Lessor or the Trustee, permit the Lessor or the Trustee (or such other
person who may be designated from time to time by the Lessor or the Trustee) to
examine and make copies of such books, records and documents in the possession
or under the control of the Lessee relating to the Vehicles leased under this
Agreement and the other HVF Vehicle Collateral; and (iii) permit the
Lessor, the Trustee or the Collateral Agent (or such other person who may be
designated from time to time by the Lessor, the Trustee or the Collateral
Agent) to visit the office and properties of the Lessee for the purpose of
examining such materials, and to discuss matters relating to the Vehicles
leased under this Agreement with the Lessee’s independent public accountants or
with any of the officers or employees of the Lessee having knowledge of such
matters, all at such reasonable times and as often as the Lessor or the Trustee
may reasonably request.  The Lessor
agrees that it will not disclose any information obtained pursuant to this
Section 26.2 which is not otherwise publicly available without the prior
approval of the Lessee, except that the Lessor may disclose such information
(x) to its officers, employees, attorneys and advisors, in each case on a
confidential and need-to-know basis, and (y) as required by applicable law
or compulsory legal process.

26.3.  ERISA. 
Comply with the minimum funding standards under ERISA with respect to
its Plans and use its best efforts to comply in all material respects with all
other applicable provisions of ERISA and the regulations and interpretations
promulgated thereunder.

26.4.  Merger.  Not merge or consolidate with or into any
other Person unless (i) the Lessee is the surviving entity of such merger
or consolidation or (ii) the surviving entity of such merger or
consolidation expressly assumes the Lessee’s obligations under this Agreement.

26.5.  Reporting Requirements.  Furnish, or cause to be furnished to the
Lessor and the Trustee:

(i)  within 120 days after
the end of each of its fiscal years, copies of the Annual Report on Form 10-K
filed by the Lessee with the SEC or, if the Lessee is not a reporting company,
information equivalent to that which would be required to be included in such
an Annual Report if it were a reporting company, including without limitation,
consolidated financial statements consisting of a balance sheet of the Lessee
and its consolidated subsidiaries as at the end of such fiscal year and statements
of income, stockholders’ equity and cash flows of the Lessee and its
consolidated subsidiaries for such fiscal year, setting forth in comparative
form the corresponding figures for the preceding fiscal year (if applicable),
certified by and containing an opinion, unqualified as to scope, of a firm of
independent certified public accountants of nationally recognized standing
selected by the Lessee and acceptable to the Lessor and the Trustee;

(ii)  within 60 days after
the end of each of the first three quarters of each of its fiscal years, copies
of the Quarterly Report on Form 10-Q filed by the Lessee with the
SEC or, if the Lessee is not a reporting company, information equivalent to
that which would be required to be included in such a Quarterly Report if it
were a reporting company, including without limitation, (x) financial
statements consisting of consolidated balance sheets of the Lessee and its
consolidated subsidiaries as at the end of such quarter and statements of
income, stockholders’ equity and cash flows of the Lessee and its consolidated
subsidiaries for each such quarter, setting forth in comparative form the
corresponding figures for the corresponding periods of the preceding fiscal
year (if applicable), all in reasonable detail and certified (subject to normal
year-end audit adjustments) by a senior financial officer of the Lessee as
having been prepared in accordance with GAAP;

(iii)  simultaneously with the
delivery of the Annual Report on Form 10-K (or equivalent
information) referred to in (i) above and the Quarterly Report on Form 10-Q
(or equivalent information) referred to in (ii) above, an Officer’s Certificate
of the Lessee stating whether, to the knowledge of such officer, there exists
on the date of the certificate any condition or event which then constitutes,
or which after notice or lapse of time or both would constitute, a Potential
Operating Lease Event of Default or Operating Lease Event of Default, and, if
any such condition or event exists, specifying the nature and period of
existence thereof and the action of the Lessee is taking and proposes to take
with respect thereto.

(iv)  promptly after becoming
aware thereof, (a) notice of the occurrence of any Potential Operating
Lease Event of Default or Operating Lease Event of Default, together with a
written statement of an Authorized Officer describing such event and the action

that the
Lessee proposes to take with respect thereto, and (b) notice of any
Amortization Event;

(v)  promptly after obtaining
actual knowledge thereof, notice of any Manufacturer Event of Default or
termination or replacement of a Manufacturer Program;

(vi)  promptly after any
executive officer of the Lessee becomes aware of the occurrence of any
Reportable Event (other than a reduction in active Plan participants) with
respect to any Plan, a certificate signed by the Executive Vice President and
Chief Financial Officer, the Treasurer or the Controller of the Lessee setting
forth the details as to such Reportable Event and the action which the Lessee
is taking and proposes to take with respect thereto, together with a copy of
the notice of such Reportable Event given to the Pension Benefit Guaranty
Corporation.

(vii)  from time to time while
this Agreement is in effect, upon the reasonable request of the Lessor or the
Trustee, officials of the Lessee will confer with officials of the Lessor or
the Trustee, as applicable, and advise them as to matters bearing on the
Vehicles or the operations or financial condition of the Lessee.

Notwithstanding the foregoing, if any audited or
reviewed financial statements or information required to be included in any
such filing are not reasonably available on a timely basis as a result of the
Lessee’s accountants not being “independent” (as defined pursuant to the Exchange
Act and the rules and regulations of the SEC thereunder), the Lessee may, in
lieu of making such filing or transmitting or making available the information,
documents and reports so required to be filed, elect to make a filing on an
alternative form or transmit or make available unaudited or unreviewed
financial statements or information substantially similar to such required
audited or reviewed financial statements or information, provided that
the Lessee shall in any event be required to make such filing and so transmit
or make available such audited or reviewed financial statements or information
no later than the first anniversary of the date on which the same was otherwise
required pursuant to the preceding provisions of this section.

26.6.  Indemnification
Agreement.  Comply in all material
respects with all of its obligations under the Indemnification Agreement.

26.7.  Ford
Program Agreements.  Comply in all
material respects with all of its obligations under those certain Auction Agent
Agreements dated as of various dates, by and among the Servicer, the Lessee,
the Trustee and the various auction houses at which Program Vehicles
manufactured by Ford are sold pursuant to which such auction houses agree to
certain procedures regarding the transfer of title to such Program Vehicles.

27.  NO
PETITION.  Each of the Lessee and the
Servicer hereby covenants and agrees that, prior to the date which is one year
and one day after the payment in full of all of the Notes, it will not
institute against, or join any other Person in instituting against the Lessor,
the Nominee, the HFC Nominee or the Intermediary, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings or other
similar 

proceeding
under the laws of the United States or any state of the United States.  In the event that the Lessee or the Servicer
takes action in violation of this Section 27, the Lessor, the Nominee, the HFC
Nominee or the Intermediary, as the case may be, agrees, for the benefit of the
Noteholders, that it shall file an answer with the bankruptcy court or
otherwise properly contest the filing of such a petition by the Lessee or the
Servicer, as the case may be, against it or the commencement of such action and
raise the defense that the Lessee or the Servicer, as the case may be, has
agreed in writing not to take such action and should be estopped and precluded
therefrom.  The provisions of this
Section 27 shall survive the termination of this Agreement.

28.  SUBMISSION
TO JURISDICTION.  The Lessor and the
Trustee may enforce any claim arising out of this Agreement in any state or
federal court having subject matter jurisdiction, including, without
limitation, any state or federal court located in the State of New York.  For the purpose of any action or proceeding
instituted with respect to any such claim, the Lessee hereby irrevocably
submits to the jurisdiction of such courts. 
The Lessee further irrevocably consents to the service of process out of
said courts by mailing a copy thereof, by registered mail, postage prepaid, to
the Lessee and agrees that such service, to the fullest extent permitted by
law, (i) shall be deemed in every respect effective service of process
upon it in any such suit, action or proceeding and (ii) shall be taken and
held to be valid personal service upon and personal delivery to it.  Nothing herein contained shall affect the
right of the Trustee and the Lessor to serve process in any other manner
permitted by law or preclude the Lessor or the Trustee from bringing an action
or proceeding in respect hereof in any other country, state or place having
jurisdiction over such action. The Lessee hereby irrevocably waives, to the
fullest extent permitted by law, any objection which it may have or hereafter
have to the laying of the venue of any such suit, action or proceeding brought
in any such court located in the State of New York and any claim that any such
suit, action or proceeding brought in such a court has been brought in an
inconvenient forum.

29.  GOVERNING
LAW.  THIS AGREEMENT SHALL BE A CONTRACT
MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.  Whenever possible each provision of this
Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement shall be
prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of
this Agreement.  All obligations of the
Lessee and the Servicer and all rights of the Lessor or the Trustee expressed
herein shall be in addition to and not in limitation of those provided by
applicable law or in any other written instrument or agreement.

30.  JURY TRIAL.  EACH PARTY HERETO HEREBY EXPRESSLY WAIVES ANY
RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY
RIGHTS UNDER THIS AGREEMENT OR ANY OTHER RELATED DOCUMENT TO WHICH IT IS A
PARTY, OR UNDER ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR
WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION THEREWITH OR ARISING FROM
ANY RELATIONSHIP EXISTING IN CONNECTION WITH 

THIS AGREEMENT OR
ANY RELATED TRANSACTION, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE
TRIED BEFORE A COURT AND NOT BEFORE A JURY.

31. 
NOTICES.  All notices, requests
and other communications to any party hereunder shall be in writing (including
facsimile transmission or similar writing) and shall be given to such party,
addressed to it, at its address or telephone number set forth on the signature
pages below, or at such other address or telephone number as such party may
hereafter specify for the purpose by notice to the other party.  Copies of notices, requests and other
communications delivered to the Trustee, the Lessee and/or the Lessor pursuant
to the foregoing sentence shall be sent to the following addresses:

TRUSTEE:

BNY Midwest Trust Company

2 North LaSalle Street

Chicago, IL 60602

Attention:  Corporate Trust
Administration Structured

Finance

Telephone:  (312) 827-8569

Fax:  (312) 827-8562

LESSOR:

225 Brae Boulevard

Park Ridge, NJ 07656

Attention:  Treasury Department

Telephone:  (201) 307-2000

Fax:  (201) 307-2746

LESSEE:

225 Brae Boulevard

Park Ridge, NJ 07656

Attention:  Treasury Department

Telephone:  (201) 307-2000

Fax:  (201) 307-2746

Each such notice, request
or communication shall be effective when received at the address specified
below.  Copies of all notices must be
sent by first class mail promptly after transmission by facsimile.

32. 
SURVIVABILITY.  In the event that,
during the term of this Agreement, the Lessee becomes liable for the payment or
reimbursement of any obligations, claims or taxes pursuant to any provision
hereof, such liability will continue, notwithstanding the expiration or
termination of this Agreement, until all such amounts are paid or reimbursed by
the Lessee.

33. 
HEADINGS.  Section headings used
in this Agreement are for convenience of reference only and shall not affect
the construction of this Agreement.

34.  EXECUTION
IN COUNTERPARTS.  This Agreement may be
executed in any number of counterparts and by different parties hereto on
separate counterparts, each of which counterparts, when so executed and
delivered, shall be deemed to be an original and all of which counterparts,
taken together, shall constitute one and the same Agreement.

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

	
  

  	
   

  	
  LESSOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HERTZ VEHICLE FINANCING LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Robert H.
  Rillings

  	
   

  
	
   

  	
   

  	
   

  	
  Robert H. Rillings

  	
   

  
	
   

  	
   

  	
   

  	
  Vice President & Treasurer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Address:

  	
  225 Brae Boulevard

  
	
   

  	
   

  	
   

  	
   

  	
  Park Ridge, NJ 07656

  
	
   

  	
   

  	
   

  	
  Attention:

  	
  Treasury Department

  
	
   

  	
   

  	
   

  	
  Telephone:

  	
  (201) 307-2000

  
	
   

  	
   

  	
   

  	
  Fax:

  	
  (201) 307-2746

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LESSEE AND
  SERVICER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE HERTZ CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Robert H. Rillings

  	
   

  
	
   

  	
   

  	
   

  	
  Robert H. Rillings

  	
   

  
	
   

  	
   

  	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Address:

  	
  225 Brae Boulevard

  
	
   

  	
   

  	
   

  	
   

  	
  Park Ridge, NJ 07656

  
	
   

  	
   

  	
   

  	
  Attention:

  	
  Treasury Department

  
	
   

  	
   

  	
   

  	
  Telephone:

  	
  (201) 307-2000

  
	
   

  	
   

  	
   

  	
  Fax:

  	
  (201) 307-2746

  
								

 

Acknowledging
its obligations under Section 27 hereof:

	
  

  	
  NOMINEE:

  
	
   

  	
   

  	
   

  
	
  

  	
  HERTZ VEHICLES LLC,

  
	
   

  	
   

  
	
   

  	
   

  	
  By

  
	
   

  	
   

  	
   

  	
  /s/ Robert H.
  Rillings

  	
   

  
	
   

  	
   

  	
   

  	
  Name:Robert H. Rillings

  
	
   

  	
   

  	
   

  	
  Title:Vice President & Treasurer

  

 

 

	
  

  	
  HFC NOMINEE:

  
	
   

  	
   

  	
   

  
	
  

  	
  HERTZ FUNDING CORPORATION,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  
	
   

  	
   

  	
   

  	
  /s/ Robert H.
  Rillings

  	
   

  
	
   

  	
   

  	
   

  	
  Name:Robert H. Rillings

  
	
   

  	
   

  	
   

  	
  Title:Vice President & Treasurer

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