Document:

Exhibit

AVIS BUDGET RENTAL CAR FUNDING (AESOP) LLC, 
as Issuer
and
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., 
as Trustee and Series 2019-3 Agent
_____________________
SERIES 2019-3 SUPPLEMENT 
dated as of 
August 27, 2019 
to
SECOND AMENDED AND RESTATED BASE INDENTURE 
dated as of June 3, 2004
_____________________

Series 2019-3 2.36% Rental Car Asset Backed Notes, Class A
Series 2019-3 2.65% Rental Car Asset Backed Notes, Class B
Series 2019-3 3.15% Rental Car Asset Backed Notes, Class C
Series 2019-3 4.874% Rental Car Asset Backed Notes, Class R

SERIES 2019-3 SUPPLEMENT, dated as of August 27, 2019 (this “Supplement”), among AVIS BUDGET RENTAL CAR FUNDING (AESOP) LLC, a special purpose limited liability company established under the laws of Delaware (“ABRCF”), THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. (formerly known as The Bank of New York), a limited purpose national banking association with trust powers, as trustee (in such capacity, and together with its successors in trust thereunder as provided in the Base Indenture referred to below, the “Trustee”), and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. (formerly known as The Bank of New York), as agent (in such capacity, the “Series 2019-3 Agent”) for the benefit of the Series 2019-3 Noteholders, to the Second Amended and Restated Base Indenture, dated as of June 3, 2004, between ABRCF and the Trustee (as amended, modified or supplemented from time to time, exclusive of Supplements creating a new Series of Notes, the “Base Indenture”).
PRELIMINARY STATEMENT
WHEREAS, Sections 2.2 and 12.1 of the Base Indenture provide, among other things, that ABRCF and the Trustee may at any time and from time to time enter into a supplement to the Base Indenture for the purpose of authorizing the issuance of one or more Series of Notes;
NOW, THEREFORE, the parties hereto agree as follows:
DESIGNATION
There is hereby created a Series of Notes to be issued pursuant to the Base Indenture and this Supplement, and such Series of Notes shall be designated generally as the “Series 2019-3 Rental Car Asset Backed Notes”.  The Series 2019-3 Notes shall be issued in up to five Classes, the first of which shall be known as the “Class A Notes”, the second of which shall be known as the “Class B Notes”, the third of which shall be known as the “Class C Notes”, the fourth of which shall be known as the “Class R Notes” and the fifth of which, if issued, shall be known as the “Class D Notes”.  
On the Series 2019-3 Closing Date, ABRCF shall issue (i) one tranche of Class A Notes, which shall be designated as the “Series 2019-3 2.36% Rental Car Asset Backed Notes, Class A”, (ii) one tranche of Class B Notes, which shall be designated as the “Series 2019-3 2.65% Rental Car Asset Backed Notes, Class B”, (iii) one tranche of Class C Notes, which shall be designated as the “Series 2019-3 3.15% Rental Car Asset Backed Notes, Class C” and (iv) one tranche of Class R Notes, which shall be designated the “Series 2019-3 4.874% Rental Car Asset Backed Notes, Class R”.     
Subsequent to the Series 2019-3 Closing Date, ABRCF may on any date during the Series 2019-3 Revolving Period offer and sell additional Series 2019-3 Notes subject to the conditions set forth in Section 5.15. Such additional Series 2019-3 Notes, if issued, shall be designated as the “Series 2019-3 Rental Car Asset Backed Notes, Class D” and shall be referred to herein as the “Class D Notes”.
The Class A Notes, Class B Notes, Class C Notes, Class D Notes, if issued, and Class R Notes collectively, constitute the Series 2019-3 Notes.  The Class B Notes shall be subordinated 

	
			
	 
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in right of payment to the Class A Notes, to the extent set forth herein.  The Class C Notes shall be subordinated in right of payment to the Class A Notes and Class B Notes, to the extent set forth herein. The Class D Notes, if issued, shall be subordinated in right of payment to the Class A Notes, Class B Notes and Class C Notes, to the extent set forth herein. The Class R Notes shall be subordinated to the Class A Notes, the Class B Notes, the Class C Notes and (if issued) the Class D Notes.  
The proceeds from the sale of the Class A Notes, Class B Notes, Class C Notes and Class R Notes shall be deposited in the Collection Account and shall be deemed to be Principal Collections.
The Series 2019-3 Notes are a non‐Segregated Series of Notes (as more fully described in the Base Indenture).  Accordingly, all references in this Supplement to “all” Series of Notes (and all references in this Supplement to terms defined in the Base Indenture that contain references to “all” Series of Notes) shall refer to all Series of Notes other than Segregated Series of Notes.
ARTICLE I 
 
DEFINITIONS
(a)    All capitalized terms not otherwise defined herein are defined in the Definitions List attached to the Base Indenture as Schedule I thereto.  All Article, Section, Subsection or Exhibit references herein shall refer to Articles, Sections, Subsections or Exhibits of this Supplement, except as otherwise provided herein.  Unless otherwise stated herein, as the context otherwise requires or if such term is otherwise defined in the Base Indenture, each capitalized term used or defined herein shall relate only to the Series 2019-3 Notes and not to any other Series of Notes issued by ABRCF.  In the event that a term used herein shall be defined both herein and in the Base Indenture, the definition of such term herein shall govern.
(b)    The following words and phrases shall have the following meanings with respect to the Series 2019-3 Notes and the definitions of such terms are applicable to the singular as well as the plural form of such terms and to the masculine as well as the feminine and neuter genders of such terms:
“ABCR” means Avis Budget Car Rental, LLC.
“Additional Class R Notes” has the meaning set forth in Section 5.15.
“Additional Notes Closing Date” has the meaning set forth in Section 5.15.
“Adjusted Net Book Value” means, as of any date of determination, with respect to each Adjusted Program Vehicle as of such date, the product of 0.965 and the Net Book Value of such Adjusted Program Vehicle as of such date.

	
			
	 
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“Applicable Distribution Date” means each Distribution Date occurring after the later of (i) the Optional Repurchase Distribution Date and (ii) the first Distribution Date occurring during the Series 2019-3 Controlled Amortization Period.
“Business Day” means any day other than (a) a Saturday or a Sunday or (b) a day on which banking institutions in New York City or in the city in which the corporate trust office of the Trustee is located are authorized or obligated by law or executive order to close.
“Certificate of Lease Deficit Demand” means a certificate substantially in the form of Annex A to the Series 2019-3 Letters of Credit.
“Certificate of Termination Date Demand” means a certificate substantially in the form of Annex D to the Series 2019-3 Letters of Credit.
“Certificate of Termination Demand” means a certificate substantially in the form of Annex C to the Series 2019-3 Letters of Credit.
“Certificate of Unpaid Demand Note Demand” means a certificate substantially in the form of Annex B to the Series 2019-3 Letters of Credit.
“Class” means a class of the Series 2019-3 Notes, which may be the Class A Notes, the Class B Notes, the Class C Notes, the Class D Notes (if issued) or the Class R Notes.
“Class A Carryover Controlled Amortization Amount” means, with respect to any Related Month during the Series 2019-3 Controlled Amortization Period, the amount, if any, by which the portion of the Monthly Total Principal Allocation paid to the Class A Noteholders pursuant to Section 2.5(e)(i) for the previous Related Month was less than the Class A Controlled Distribution Amount for the previous Related Month; provided, however, that for the first Related Month in the Series 2019-3 Controlled Amortization Period, the Class A Carryover Controlled Amortization Amount shall be zero.
“Class A Controlled Amortization Amount” means, (i) with respect to any Related Month during the Series 2019-3 Controlled Amortization Period other than the Related Month immediately preceding the Series 2019-3 Expected Final Distribution Date, $89,266,666.67 and (ii) with respect to the Related Month immediately preceding the Series 2019-3 Expected Final Distribution Date, $89,266,666.65.
“Class A Controlled Distribution Amount” means, with respect to any Related Month during the Series 2019-3 Controlled Amortization Period, an amount equal to the sum of the Class A Controlled Amortization Amount and any Class A Carryover Controlled Amortization Amount for such Related Month.
“Class A Initial Invested Amount” means the aggregate initial principal amount of the Class A Notes, which is $535,600,000.

	
			
	 
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“Class A Invested Amount” means, when used with respect to any date, an amount equal to (a) the Class A Initial Invested Amount minus (b) the amount of principal payments made to Class A Noteholders on or prior to such date.
“Class A Monthly Interest” means, with respect to (i) the initial Series 2019-3 Interest Period, an amount equal to $807,565.78 and (ii) any other Series 2019-3 Interest Period, an amount equal to the product of (A) one-twelfth of the Class A Note Rate and (B) the Class A Invested Amount on the first day of such Series 2019-3 Interest Period, after giving effect to any principal payments made on such date.
“Class A Note” means any one of the Series 2019-3 2.36% Rental Car Asset Backed Notes, Class A, executed by ABRCF and authenticated by or on behalf of the Trustee, substantially in the form of Exhibit A‐1, Exhibit A-2 or Exhibit A-3.  Definitive Class A Notes shall have such insertions and deletions as are necessary to give effect to the provisions of Section 2.18 of the Base Indenture.
“Class A Note Rate” means 2.36% per annum.
“Class A Noteholder” means the Person in whose name a Class A Note is registered in the Note Register.
“Class A Shortfall” has the meaning set forth in Section 2.3(g)(i).
“Class B Carryover Controlled Amortization Amount” means, with respect to any Related Month during the Series 2019-3 Controlled Amortization Period, the amount, if any, by which the portion of the Monthly Total Principal Allocation paid to the Class B Noteholders pursuant to Section 2.5(e)(ii) for the previous Related Month was less than the Class B Controlled Distribution Amount for the previous Related Month; provided, however, that for the first Related Month in the Series 2019-3 Controlled Amortization Period, the Class B Carryover Controlled Amortization Amount shall be zero.
“Class B Controlled Amortization Amount” means (i) with respect to any Related Month during the Series 2019-3 Controlled Amortization Period other than the Related Month immediately preceding the Series 2019-3 Expected Final Distribution Date, $10,291,666.67 and (ii) with respect to the Related Month immediately preceding the Series 2019-3 Expected Final Distribution Date, $10,291,666.65.
 “Class B Controlled Distribution Amount” means, with respect to any Related Month during the Series 2019-3 Controlled Amortization Period, an amount equal to the sum of the Class B Controlled Amortization Amount and any Class B Carryover Controlled Amortization Amount for such Related Month.
“Class B Initial Invested Amount” means the aggregate initial principal amount of the Class B Notes, which is $61,750,000.

	
			
	 
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“Class B Invested Amount” means, when used with respect to any date, an amount equal to (a) the Class B Initial Invested Amount minus (b) the amount of principal payments made to Class B Noteholders on or prior to such date.
“Class B Monthly Interest” means, with respect to (i) the initial Series 2019-3 Interest Period, an amount equal to $104,546.18 and (ii) any other Series 2019-3 Interest Period, an amount equal to the product of (A) one-twelfth of the Class B Note Rate and (B) the Class B Invested Amount on the first day of such Series 2019-3 Interest Period, after giving effect to any principal payments made on such date.
“Class B Note” means any one of the Series 2019-3 2.65% Rental Car Asset Backed Notes, Class B, executed by ABRCF and authenticated by or on behalf of the Trustee, substantially in the form of Exhibit B‐1, Exhibit B‐2 or Exhibit B‐3.  Definitive Class B Notes shall have such insertions and deletions as are necessary to give effect to the provisions of Section 2.18 of the Base Indenture.
“Class B Note Rate” means 2.65% per annum.
“Class B Noteholder” means the Person in whose name a Class B Note is registered in the Note Register.
“Class B Shortfall” has the meaning set forth in Section 2.3(g)(ii).
“Class C Carryover Controlled Amortization Amount” means, with respect to any Related Month during the Series 2019-3 Controlled Amortization Period, the amount, if any, by which the portion of the Monthly Total Principal Allocation paid to the Class C Noteholders pursuant to Section 2.5(e)(iii) for the previous Related Month was less than the Class C Controlled Distribution Amount for the previous Related Month; provided, however, that for the first Related Month in the Series 2019-3 Controlled Amortization Period, the Class C Carryover Controlled Amortization Amount shall be zero.
“Class C Controlled Amortization Amount” means with respect to any Related Month during the Series 2019-3 Controlled Amortization Period, $8,775,000.
“Class C Controlled Distribution Amount” means, with respect to any Related Month during the Series 2019-3 Controlled Amortization Period, an amount equal to the sum of the Class C Controlled Amortization Amount and any Class C Carryover Controlled Amortization Amount for such Related Month.
“Class C Initial Invested Amount” means the aggregate initial principal amount of the Class C Notes, which is $52,650,000.
“Class C Invested Amount” means, when used with respect to any date, an amount equal to (a) the Class C Initial Invested Amount minus (b) the amount of principal payments made to Class C Noteholders on or prior to such date.

	
			
	 
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 “Class C Monthly Interest” means, with respect to (i) the initial Series 2019-3 Interest Period, an amount equal to $105,958.13 and (ii) any other Series 2019-3 Interest Period, an amount equal to the product of (A) one-twelfth of the Class C Note Rate and (B) the Class C Invested Amount on the first day of such Series 2019-3 Interest Period, after giving effect to any principal payments made on such date.
“Class C Note” means any one of the Series 2019-3 3.15% Rental Car Asset Backed Notes, Class C, executed by ABRCF and authenticated by or on behalf of the Trustee, substantially in the form of Exhibit C‐1, Exhibit C‐2 or Exhibit C‐3.  Definitive Class C Notes shall have such insertions and deletions as are necessary to give effect to the provisions of Section 2.18 of the Base Indenture.
“Class C Note Rate” means 3.15% per annum.
“Class C Noteholder” means the Person in whose name a Class C Note is registered in the Note Register.
“Class C Shortfall” has the meaning set forth in Section 2.3(g)(iii).
“Class D Noteholder” means the Person in whose name a Class D Note is registered in the Note Register.
“Class D Notes” has the meaning set forth in the preamble.
 “Class R Controlled Amortization Amount” means, (i) with respect to any Related Month during the Series 2019-3 Controlled Amortization Period other than the Related Month immediately preceding the Series 2019-3 Expected Final Distribution Date, $0 and (ii) with respect to the Related Month immediately preceding the Series 2019-3 Expected Final Distribution Date, the sum of (x) $35,750,000 and (y) the aggregate principal amount of any Additional Class R Notes.
 “Class R Initial Invested Amount” means the aggregate initial principal amount of the Class R Notes, which is $35,750,000.
“Class R Invested Amount” means, when used with respect to any date, an amount equal to (a) the Class R Initial Invested Amount plus (b) the aggregate principal amount of any Additional Class R Notes issued on or prior to such date minus (b) the amount of principal payments made to Class R Noteholders on or prior to such date. 
 “Class R Monthly Interest” means, with respect to (i) the initial Series 2019-3 Interest Period, an amount equal to $111,323.51 and (ii) any other Series 2019-3 Interest Period, an amount equal to the product of (A) one-twelfth of the Class R Note Rate and (B) the Class R Invested Amount on the first day of such Series 2019-3 Interest Period, after giving effect to any principal payments made on such date.
“Class R Note” means any one of the Series 2019-3 4.874% Rental Car Asset Backed Notes, Class R, executed by ABRCF and authenticated by or on behalf of the Trustee, substantially in the form of Exhibit D‐1, Exhibit D‐2 or Exhibit D‐3.  Definitive Class R Notes shall have such 

	
			
	 
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insertions and deletions as are necessary to give effect to the provisions of Section 2.18 of the Base Indenture.
“Class R Note Rate” means 4.874% per annum
“Class R Noteholder” means the Person in whose name a Class R Note is registered in the Note Register.
“Class R Shortfall” has the meaning set forth in Section 2.3(g)(iv). 
“Clean-up Repurchase” means any optional repurchase pursuant to Section 5.1(a).
“Clean-up Repurchase Distribution Date” has the meaning set forth in Section 5.1(a).
“Confirmation Condition” means, with respect to any Bankrupt Manufacturer which is a debtor in Chapter 11 Proceedings, a condition that shall be satisfied upon the bankruptcy court having competent jurisdiction over such Chapter 11 Proceedings issuing an order that remains in effect approving (i) the assumption of such Bankrupt Manufacturer’s Manufacturer Program (and the related Assignment Agreements) by such Bankrupt Manufacturer or the trustee in bankruptcy of such Bankrupt Manufacturer under Section 365 of the Bankruptcy Code and at the time of such assumption, the payment of all amounts due and payable by such Bankrupt Manufacturer under such Manufacturer Program and the curing of all other defaults by the Bankrupt Manufacturer thereunder or (ii) the execution, delivery and performance by such Bankrupt Manufacturer of a new post‐petition Manufacturer Program (and the related Assignment Agreements) on the same terms and covering the same Vehicles as such Bankrupt Manufacturer’s Manufacturer Program (and the related Assignment Agreements) in effect on the date such Bankrupt Manufacturer became subject to such Chapter 11 Proceedings and, at the time of the execution and delivery of such new post‐petition Manufacturer Program, the payment of all amounts due and payable by such Bankrupt Manufacturer under such Manufacturer Program and the curing of all other defaults by the Bankrupt Manufacturer thereunder; provided, however, that notwithstanding the foregoing, the Confirmation Condition shall be deemed satisfied until the 90th calendar day following the initial filing in respect of such Chapter 11 Proceedings.
“DBRS” means DBRS, Inc.
“DBRS Equivalent Rating” means, with respect to any Person not rated by DBRS, (i) if such Person is rated by all three of Moody’s, Standard & Poor’s and Fitch (together, the “Equivalent Rating Agencies”), either (A) if at least two Equivalent Rating Agencies have provided equivalent ratings with respect to such Person, the DBRS equivalent of such equivalent ratings (regardless of any rating from another Equivalent Rating Agency) or (B) otherwise, the median of the DBRS equivalents of the ratings for such Person provided by each of the three Equivalent Rating Agencies, (ii) if such Person is rated by any two of the Equivalent Rating Agencies, the DBRS equivalent of the lower of the ratings for such Person provided by the relevant Equivalent Rating Agencies or (iii) if such Person is rated by only one of the Equivalent Rating Agencies,  the DBRS equivalent of the rating for such Person provided by such Equivalent Rating Agency.

	
			
	 
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“DBRS Excluded Manufacturer Amount” means, as of any date of determination, an amount equal to the excess, if any, of (x) the sum of the following amounts with respect to each DBRS Non-Investment Grade Manufacturer as of such date: the product of (i) to the extent such amounts are included in the calculation of AESOP I Operating Lease Loan Agreement Borrowing Base as of such date, all amounts receivable as of such date by AESOP Leasing or the Intermediary from such DBRS Non-Investment Grade Manufacturer and (ii) the DBRS Excluded Manufacturer Receivable Specified Percentage for such DBRS Non-Investment Grade Manufacturer as of such date over (y) the sum of the following amounts with respect to each DBRS Non-Investment Grade Manufacturer as of such date: the product of (i) the aggregate Net Book Value of any Vehicles subject to a Manufacturer Program from such Manufacturer that have had a Turnback Date but for which (A) AESOP Leasing or its Permitted Nominee continues to be named as the owner of the Vehicle on the Certificate of Title for such Vehicle and (B) AESOP Leasing or its agent continues to hold the Certificate of Title for such Vehicle and (ii) the DBRS Turnback Vehicle Specified Percentage for such DBRS Non-Investment Grade Manufacturer as of such date.
“DBRS Excluded Manufacturer Receivable Specified Percentage” means, as of any date of determination, with respect to each DBRS Non-Investment Grade Manufacturer as of such date, the percentage (not to exceed 100%) most recently specified in writing by DBRS to ABRCF and the Trustee and consented to by the Requisite Series 2019-3 Noteholders with respect to such DBRS Non-Investment Grade Manufacturer; provided, however, that as of the Series 2019-3 Closing Date the DBRS Excluded Manufacturer Receivable Specified Percentage for each DBRS Non-Investment Grade Manufacturer shall be 100%; provided, further, that the initial DBRS Excluded Manufacturer Receivable Specified Percentage with respect to any Manufacturer that becomes a DBRS Non-Investment Grade Manufacturer after the Series 2019-3 Closing Date shall be 100%.
“DBRS Non-Investment Grade Manufacturer” means, as of any date of determination, any Manufacturer that (i) is not a Bankrupt Manufacturer and (ii) does not have a long-term senior unsecured debt rating from DBRS (or, if such Manufacturer is not rated by DBRS, a DBRS Equivalent Rating) of at least “BBB (low)”; provided, however, that any Manufacturer whose long-term senior unsecured debt rating from DBRS (or, if such Manufacturer is not rated by DBRS, its DBRS Equivalent Rating) is downgraded from at least “BBB (low)” to below “BBB (low)” after the Series 2019-3 Closing Date shall not be deemed a DBRS Non-Investment Grade Manufacturer until the thirtieth (30th) calendar day following such downgrade.
“DBRS Turnback Vehicle Specified Percentage” means, as of any date of determination: (i) with respect to each Manufacturer that has a long-term senior unsecured debt rating from DBRS (or, if such Manufacturer is not rated by DBRS, a DBRS Equivalent Rating) on such date of determination of at least “BB (low)” but less than “BBB (low)”, 65%; (ii) with respect to each Manufacturer that has a long-term senior unsecured debt rating from DBRS (or, if such Manufacturer is not rated by DBRS, a DBRS Equivalent Rating) on such date of determination of at least “B (low)” but less than “BB (low)”, 25%; and (iii) with respect to each Manufacturer that has a long-term senior unsecured debt rating from DBRS (or, if such Manufacturer is not rated by DBRS, a DBRS Equivalent Rating) on such date of determination of “CCC” or below (or is not rated by DBRS or any Equivalent Rating Agency on such date of determination), 0%; provided, 

	
			
	 
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however, that any Manufacturer whose long-term senior unsecured debt rating from DBRS is downgraded after the Series 2019-3 Closing Date (or, if such Manufacturer is not rated by DBRS, its DBRS Equivalent Rating is lowered as a result of such Manufacturer being downgraded by an Equivalent Rating Agency after the Series 2019-3 Closing Date) shall be deemed to retain its long-term senior unsecured debt rating from DBRS (or, if such Manufacturer is not rated by DBRS, its DBRS Equivalent Rating) in effect immediately prior to such downgrade until the thirtieth (30th) calendar day following such downgrade.
“Demand Note Issuer” means each issuer of a Series 2019-3 Demand Note.
“Disbursement” means any Lease Deficit Disbursement, any Unpaid Demand Note Disbursement, any Termination Date Disbursement or any Termination Disbursement under a Series 2019-3 Letter of Credit, or any combination thereof, as the context may require.
“Discounted Value” means, for each Remaining Distribution Amount, the amount obtained by discounting such Remaining Distribution Amount from the applicable Distribution Date to the Optional Repurchase Distribution Date in accordance with accepted financial practice and at a discount factor equal to the Reinvestment Yield with respect to such Remaining Distribution Amount.
“Excluded Manufacturer Amount” means, as of any date of determination, the greater of the Moody’s Excluded Manufacturer Amount and the DBRS Excluded Manufacturer Amount as of such date.
“Finance Guide” means the Black Book Official Finance/Lease Guide.
“Fitch” means Fitch Ratings, Inc.
“Lease Deficit Disbursement” means an amount drawn under a Series 2019-3 Letter of Credit pursuant to a Certificate of Lease Deficit Demand.
“Make Whole Payment” means, with respect to any Series 2019-3 Note on any Optional Repurchase Distribution Date, the pro rata share with respect to such Series 2019-3 Note of the excess, if any, of (x) the sum of the Discounted Values for each Remaining Distribution Amount with respect to each Applicable Distribution Date over (y) the Series 2019-3 Invested Amount as of such Optional Repurchase Distribution Date (determined after giving effect to any payments made pursuant to Section 2.5(a) on such Distribution Date).
 “Market Value Average” means, as of any day, the percentage equivalent of a fraction, the numerator of which is the average of the Selected Fleet Market Value as of the preceding Determination Date and the two Determination Dates precedent thereto and the denominator of which is the sum of (a) the average of the aggregate Net Book Value of all Non‐Program Vehicles (excluding (i) any Unaccepted Program Vehicles, (ii) any Excluded Redesignated Vehicles and (iii) any other Non‐Program Vehicles that are subject to a Manufacturer Program with an Eligible Non‐Program Manufacturer with respect to which no Manufacturer Event of Default has occurred and is continuing) and (b) the average of the aggregate Adjusted Net Book Value of all Adjusted 

	
			
	 
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Program Vehicles, in the case of each of clause (a) and (b) leased under the AESOP I Operating Lease and the Finance Lease as of the preceding Determination Date and the two Determination Dates precedent thereto.
“Monthly Total Principal Allocation” means for any Related Month the sum of all Series 2019-3 Principal Allocations with respect to such Related Month.
“Moody’s Excluded Manufacturer Amount” means, as of any date of determination, an amount equal to the excess, if any, of (x) the sum of the following amounts with respect to each Moody’s Non-Investment Grade Manufacturer as of such date: the product of (i) to the extent such amounts are included in the calculation of AESOP I Operating Lease Loan Agreement Borrowing Base as of such date, all amounts receivable as of such date by AESOP Leasing or the Intermediary from such Moody’s Non-Investment Grade Manufacturer and (ii) the Moody’s Excluded Manufacturer Receivable Specified Percentage for such Moody’s Non-Investment Grade Manufacturer as of such date over (y) the sum of the following amounts with respect to each Moody’s Non-Investment Grade Manufacturer as of such date: the product of (i) the aggregate Net Book Value of any Vehicles subject to a Manufacturer Program from such Manufacturer that have had a Turnback Date but for which (A) AESOP Leasing or its Permitted Nominee continues to be named as the owner of the Vehicle on the Certificate of Title for such Vehicle and (B) AESOP Leasing or its agent continues to hold the Certificate of Title for such Vehicle and (ii) the Moody’s Turnback Vehicle Specified Percentage for such Moody’s Non-Investment Grade Manufacturer as of such date.
“Moody’s Excluded Manufacturer Receivable Specified Percentage” means, as of any date of determination, with respect to each Moody’s Non‐Investment Grade Manufacturer as of such date, the percentage (not to exceed 100%) most recently specified in writing by Moody’s to ABRCF and the Trustee and consented to by the Requisite Series 2019-3 Noteholders with respect to such Moody’s Non‐Investment Grade Manufacturer; provided, however, that as of the Series 2019-3 Closing Date the Moody’s Excluded Manufacturer Receivable Specified Percentage for each Moody’s Non‐Investment Grade Manufacturer shall be 100%; provided, further, that the initial Moody’s Excluded Manufacturer Receivable Specified Percentage with respect to any Manufacturer that becomes a Moody’s Non‐Investment Grade Manufacturer after the Series 2019-3 Closing Date shall be 100%.
“Moody’s Non‐Investment Grade Manufacturer” means, as of any date of determination, any Manufacturer that (i) is not a Bankrupt Manufacturer and (ii) does not have either (A) a long-term corporate family rating of at least “Baa3” from Moody’s or (B) if such Manufacturer does not have a long-term corporate family rating from Moody’s as of such date, a long-term senior unsecured debt rating of at least “Ba1” from Moody’s; provided, however, that any Manufacturer whose long-term corporate family rating is downgraded from at least “Baa3” to below “Baa3” by Moody’s or whose long-term senior unsecured debt rating is downgraded from at least “Ba1” to below “Ba1” by Moody’s, as applicable, after the Series 2019-3 Closing Date shall not be deemed a Moody’s Non-Investment Grade Manufacturer until the thirtieth (30th) calendar day following such downgrade.

	
			
	 
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“Moody’s Turnback Vehicle Specified Percentage” means, as of any date of determination: (i) with respect to each Moody’s Non-Investment Grade Manufacturer that has a long-term corporate family rating from Moody’s on such date of determination of at least “Ba3” (or, if such Moody’s Non-Investment Grade Manufacturer does not have a long-term corporate family rating from Moody’s as of such date, a long-term senior unsecured debt rating of at least “B1”), 65%; (ii) with respect to each Moody’s Non-Investment Grade Manufacturer that has a long-term corporate family rating from Moody’s on such date of determination of at least “B3” but less than “Ba3” (or, if such Moody’s Non-Investment Grade Manufacturer does not have a long-term corporate family rating from Moody’s as of such date, a long-term senior unsecured debt rating of at least “Caa1” but less than “B1”), 25%; and (iii) with respect to any other Moody’s Non-Investment Grade Manufacturer, 0%; provided, however, that any Manufacturer whose long-term corporate family rating or long-term senior unsecured debt rating from Moody’s is downgraded after the Series 2019-3 Closing Date shall be deemed to retain its long-term corporate family rating or long-term senior unsecured debt rating, as applicable, from Moody’s in effect immediately prior to such downgrade until the thirtieth (30th) calendar day following such downgrade.
“Optional Repurchase” is defined in Section 5.1(b).
“Optional Repurchase Distribution Date” is defined in Section 5.1(b).
“Past Due Rent Payment” is defined in Section 2.2(g).
“Permanent Global Class A Note” is defined in Section 4.2.
“Permanent Global Class B Note” is defined in Section 4.2.
“Permanent Global Class C Note” is defined in Section 4.2.
“Permanent Global Class R Note” is defined in Section 4.2.
“Permanent Global Series 2019-3 Notes” is defined in Section 4.2.
“Pre‐Preference Period Demand Note Payments” means, as of any date of determination, the aggregate amount of all proceeds of demands made on the Series 2019-3 Demand Notes included in the Series 2019-3 Demand Note Payment Amount as of the Series 2019-3 Letter of Credit Termination Date that were paid by the Demand Note Issuers more than one year before such date of determination; provided, however, that if an Event of Bankruptcy (or the occurrence of an event described in clause (a) of the definition thereof, without the lapse of a period of sixty (60) consecutive days) with respect to a Demand Note Issuer occurs during such one‐year period, (x) the Pre‐Preference Period Demand Note Payments as of any date during the period from and including the date of the occurrence of such Event of Bankruptcy to and including the conclusion or dismissal of the proceedings giving rise to such Event of Bankruptcy without continuing jurisdiction by the court in such proceedings shall equal the Pre‐Preference Period Demand Note Payments as of the date of such occurrence for all Demand Note Issuers and (y) the Pre‐Preference Period Demand Note Payments as of any date after the conclusion or dismissal of such proceedings 

	
			
	 
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shall equal the Series 2019-3 Demand Note Payment Amount as of the date of the conclusion or dismissal of such proceedings.
“Principal Deficit Amount” means, as of any date of determination, the excess, if any, of (i) the Series 2019-3 Senior Invested Amount on such date (after giving effect to the distribution of the Monthly Total Principal Allocation for the Related Month if such date is a Distribution Date) over (ii) the Series 2019-3 AESOP I Operating Lease Loan Agreement Borrowing Base on such date; provided, however, that the Principal Deficit Amount on any date occurring during the period commencing on and including the date of the filing by any of the Lessees of a petition for relief under Chapter 11 of the Bankruptcy Code to but excluding the date on which each of the Lessees shall have resumed making all payments of the portion of Monthly Base Rent relating to Loan Interest required to be made under the AESOP I Operating Lease, shall mean the excess, if any, of (x) the Series 2019-3 Senior Invested Amount on such date (after giving effect to the distribution of Monthly Total Principal Allocation for the Related Month if such date is a Distribution Date) over (y) the sum of (1) the Series 2019-3 AESOP I Operating Lease Loan Agreement Borrowing Base on such date and (2) the lesser of (a) the Series 2019-3 Liquidity Amount on such date and (b) the Series 2019-3 Required Liquidity Amount on such date.
“Proposed Class D Notes” has the meaning set forth in Section 5.15.
“Pro Rata Share” means, with respect to any Series 2019-3 Letter of Credit Provider as of any date, the fraction (expressed as a percentage) obtained by dividing (A) the available amount under such Series 2019-3 Letter of Credit Provider’s Series 2019-3 Letter of Credit as of such date by (B) an amount equal to the aggregate available amount under all Series 2019-3 Letters of Credit as of such date; provided, however, that only for purposes of calculating the Pro Rata Share with respect to any Series 2019-3 Letter of Credit Provider as of any date, if such Series 2019-3 Letter of Credit Provider has not complied with its obligation to pay the Trustee the amount of any draw under its Series 2019-3 Letter of Credit made prior to such date, the available amount under such Series 2019-3 Letter of Credit Provider’s Series 2019-3 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 2019-3 Letter of Credit Provider has paid such amount to the Trustee and been reimbursed by the Lessee or the applicable Demand Note Issuer, as the case may be, for such amount (provided, however, that the foregoing calculation shall not in any manner reduce the undersigned’s actual liability in respect of any failure to pay any demand under its Series 2019-3 Letter of Credit).
“Reinvestment Yield” means, with respect to any Remaining Distribution Amount, the sum of (i) 0.25% and (ii) the greater of (x) 0% and (y) the U.S. Treasury Rate with respect to such Remaining Distribution Amount.
“Remaining Distribution Amount” means, with respect to each Applicable Distribution Date, the sum of (i) the sum of (x) an amount equal to the Class A Controlled Amortization Amount with respect to the Related Month immediately preceding such Applicable Distribution Date (or, if the Optional Repurchase Distribution Date occurs after the October 2024 Distribution Date, the Class A Controlled Distribution Amount with respect to the Related Month preceding the first such Applicable Distribution Date) and (y) the interest that will accrue on such 

	
			
	 
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amount from the Optional Repurchase Distribution Date to such Applicable Distribution Date at the Class A Note Rate, (ii) the sum of (x) an amount equal to the Class B Controlled Amortization Amount with respect to the Related Month immediately preceding such Applicable Distribution Date (or, if the Optional Repurchase Distribution Date occurs after the October 2024 Distribution Date, the Class B Controlled Distribution Amount with respect to the Related Month preceding the first such Applicable Distribution Date) and (y) the interest that will accrue on such amount from the Optional Repurchase Distribution Date to such Applicable Distribution Date at the Class B Note Rate, (iii) the sum of (x) an amount equal to the Class C Controlled Amortization Amount with respect to the Related Month immediately preceding such Applicable Distribution Date (or, if the Optional Repurchase Distribution Date occurs after the October 2024 Distribution Date, the Class C Controlled Distribution Amount with respect to the Related Month preceding the first such Applicable Distribution Date) and (y) the interest that will accrue on such amount from the Optional Repurchase Distribution Date to such Applicable Distribution Date at the Class C Note Rate and (iv) the sum of (x) an amount equal to the Class R Controlled Amortization Amount with respect to the Related Month immediately preceding such Applicable Distribution Date (or, if the Optional Repurchase Distribution Date occurs after the October 2024 Distribution Date, the Class R Controlled Amortization Amount with respect to the Related Month preceding the first such Applicable Distribution Date) and (y) the interest that will accrue on such amount from the Optional Repurchase Distribution Date to such Applicable Distribution Date at the Class R Note Rate.  
“Required Controlling Class Series 2019-3 Noteholders” means (i) for so long as any Class A Notes are outstanding, Class A Noteholders holding more than 50% of the Class A Invested Amount, (ii) if no Class A Notes are outstanding and for so long as any Class B Notes are outstanding, Class B Noteholders holding more than 50% of the Class B Invested Amount, (iii) if no Class A Notes or Class B Notes are outstanding, Class C Noteholders holding more than 50% of the Class C Invested Amount (excluding, for the purposes of making any of the foregoing calculations, any Series 2019-3 Notes held by ABCR or any Affiliate of ABCR unless ABCR or such Affiliate is the sole Series 2019-3 Noteholder) and (iv) if no Class A Notes, Class B Notes or Class C Notes are outstanding, Class R Noteholders holding more than 50% Class R Invested Amount (excluding, for the purposes of making any of the foregoing calculations, any Series 2019-3 Notes held by ABCR or any Affiliate of ABCR unless ABCR or such Affiliate is the sole Series 2019-3 Noteholder).  
“Requisite Series 2019-3 Noteholders” means Class A Noteholders, Class B Noteholders, Class C Noteholders and/or Class R Noteholders holding, in the aggregate, more than 50% of the Series 2019-3 Invested Amount (excluding, for the purposes of making the foregoing calculation, any Series 2019-3 Notes held by ABCR or any Affiliate of ABCR or such Affiliate unless ABCR is the sole Series 2019-3 Noteholder).
“Restricted Global Class A Note” is defined in Section 4.1.
“Restricted Global Class B Note” is defined in Section 4.1.
“Restricted Global Class C Note” is defined in Section 4.1.
“Restricted Global Class R Note” is defined in Section 4.1.

	
			
	 
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“Selected Fleet Market Value” means, with respect to all Adjusted Program Vehicles and all Non‐Program Vehicles (excluding (i) any Unaccepted Program Vehicles, (ii) any Excluded Redesignated Vehicles and (iii) any other Non‐Program Vehicles that are subject to a Manufacturer Program with an Eligible Non‐Program Manufacturer with respect to which no Manufacturer Event of Default has occurred and is continuing) as of any date of determination, the sum of the respective Market Values of each such Adjusted Program Vehicle and each such Non‐Program Vehicle, in each case subject to the AESOP I Operating Lease or the Finance Lease as of such date.  For purposes of computing the Selected Fleet Market Value, the “Market Value” of an Adjusted Program Vehicle or a Non‐Program Vehicle means the market value of such Vehicle as specified in the most recently published NADA Guide for the model class and model year of such Vehicle based on the average equipment and the average mileage of each Vehicle of such model class and model year then leased under the AESOP I Operating Lease and the Finance Lease; provided, however, that if the NADA Guide is not being published or the NADA Guide is being published but such Vehicle is not included therein, the Market Value of such Vehicle shall be based on the market value specified in the most recently published Finance Guide for the model class and model year of such Vehicle based on the average equipment and the average mileage of each Vehicle of such model class and model year then leased under the AESOP I Operating Lease or the Finance Lease; provided, further, that if the Finance Guide is being published but such Vehicle is not included therein, the Market Value of such Vehicle shall mean (x) in the case of an Adjusted Program Vehicle, the Adjusted Net Book Value of such Adjusted Program Vehicle and (y) in the case of a Non‐Program Vehicle, the Net Book Value of such Non‐Program Vehicle provided, further, that if the Finance Guide is not being published, the Market Value of such Vehicle shall be based on an independent third‐party data source selected by the Administrator and approved by each Rating Agency that is rating any Series of Notes at the request of ABRCF based on the average equipment and average mileage of each Vehicle of such model class and model year then leased under the AESOP I Operating Lease or the Finance Lease; provided, further, that if no such third‐party data source or methodology shall have been so approved or any such third‐party data source or methodology is not available, the Market Value of such Vehicle shall be equal to a reasonable estimate of the wholesale market value of such Vehicle as determined by the Administrator, based on the Net Book Value of such Vehicle and any other factors deemed relevant by the Administrator.
 “Series 2010-6 Notes” means the Series of Notes designated as the Series 2010-6 Notes.
 “Series 2011-4 Notes” means the Series of Notes designated as the Series 2011-4 Notes.
“Series 2014-2 Notes” means the Series of Notes designated as the Series 2014-2 Notes. 
“Series 2015-1 Notes” means the Series of Notes designated as the Series 2015-1 Notes.
“Series 2015-2 Notes” means the Series of Notes designated as the Series 2015-2 Notes.

	
			
	 
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“Series 2015-3 Notes” means the Series of Notes designated as the Series 2015-3 Notes.
“Series 2016-1 Notes” means the Series of Notes designated as the Series 2016-1 Notes.
“Series 2016-2 Notes” means the Series of Notes designated as the Series 2016-2 Notes.
“Series 2017-1 Notes” means the Series of Notes designated as the Series 2017-1 Notes.
“Series 2017-2 Notes” means the Series of Notes designated as the Series 2017-2 Notes.
“Series 2018-1 Notes” means the Series of Notes designated as the Series 2018-1 Notes.
“Series 2018-2 Notes” means the Series of Notes designated as the Series 2018-2 Notes.
“Series 2019-1 Notes” means the Series of Notes designated as the Series 2019-1 Notes.
“Series 2019-2 Notes” means the Series of Notes designated as the Series 2019-2 Notes.
“Series 2019-3 Accounts” means each of the Series 2019-3 Distribution Account, the Series 2019-3 Reserve Account, the Series 2019-3 Collection Account, the Series 2019-3 Excess Collection Account and the Series 2019-3 Accrued Interest Account.
“Series 2019-3 Accrued Interest Account” is defined in Section 2.1(b).
“Series 2019-3 AESOP I Operating Lease Loan Agreement Borrowing Base” means, as of any date of determination, the product of (a) the Series 2019-3 AESOP I Operating Lease Vehicle Percentage as of such date and (b) the excess of (i) the AESOP I Operating Lease Loan Agreement Borrowing Base as of such date over (ii) the Excluded Manufacturer Amount as of such date.
“Series 2019-3 AESOP I Operating Lease Vehicle Percentage” means, as of any date of determination, a fraction, expressed as a percentage (which percentage shall never exceed 100%), the numerator of which is the Series 2019-3 Required AESOP I Operating Lease Vehicle Amount as of such date and the denominator of which is the sum of the Required AESOP I Operating Lease Vehicle Amounts for all Series of Notes as of such date.
“Series 2019-3 Agent” is defined in the recitals hereto.

	
			
	 
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“Series 2019-3 Available Cash Collateral Account Amount” means, as of any date of determination, the amount on deposit in the Series 2019-3 Cash Collateral Account (after giving effect to any deposits thereto and withdrawals and releases therefrom on such date).
“Series 2019-3 Available Reserve Account Amount” means, as of any date of determination, the amount on deposit in the Series 2019-3 Reserve Account (after giving effect to any deposits thereto and withdrawals and releases therefrom on such date).
“Series 2019-3 Cash Collateral Account” is defined in Section 2.8(f).
“Series 2019-3 Cash Collateral Account Collateral” is defined in Section 2.8(a).
“Series 2019-3 Cash Collateral Account Surplus” means, with respect to any Distribution Date, the lesser of (a) the Series 2019-3 Available Cash Collateral Account Amount and (b) the lesser of (A) the excess, if any, of the Series 2019-3 Liquidity Amount (after giving effect to any withdrawal from the Series 2019-3 Reserve Account on such Distribution Date) over the Series 2019-3 Required Liquidity Amount on such Distribution Date and (B) the excess, if any, of the Series 2019-3 Enhancement Amount (after giving effect to any withdrawal from the Series 2019-3 Reserve Account on such Distribution Date) over the Series 2019-3 Required Enhancement Amount on such Distribution Date; provided, however, that, on any date after the Series 2019-3 Letter of Credit Termination Date, the Series 2019-3 Cash Collateral Account Surplus shall mean the excess, if any, of (x) the Series 2019-3 Available Cash Collateral Account Amount over (y) the Series 2019-3 Demand Note Payment Amount minus the Pre‐Preference Period Demand Note Payments as of such date.
“Series 2019-3 Cash Collateral Percentage” means, as of any date of determination, the percentage equivalent of a fraction, the numerator of which is the Series 2019-3 Available Cash Collateral Account Amount as of such date and the denominator of which is the Series 2019-3 Letter of Credit Liquidity Amount as of such date.
“Series 2019-3 Closing Date” means August 27, 2019.
“Series 2019-3 Collateral” means the Collateral, each Series 2019-3 Letter of Credit, each Series 2019-3 Demand Note, the Series 2019-3 Distribution Account Collateral, the Series 2019-3 Cash Collateral Account Collateral and the Series 2019-3 Reserve Account Collateral.
“Series 2019-3 Collection Account” is defined in Section 2.1(b).
“Series 2019-3 Controlled Amortization Period” means the period commencing upon the close of business on August 31, 2024 (or, if such day is not a Business Day, the Business Day immediately preceding such day) and continuing to the earliest of (i) the commencement of the Series 2019-3 Rapid Amortization Period, (ii) the date on which the Series 2019-3 Notes are fully paid and (iii) the termination of the Indenture.
“Series 2019-3 DBRS Highest Enhanced Vehicle Percentage” means, as of any date of determination, a fraction, expressed as a percentage, (a) the numerator of which is the aggregate 

	
			
	 
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Net Book Value of all Vehicles leased under the AESOP I Operating Lease that were manufactured by a Manufacturer that does not have a long-term senior unsecured debt rating from DBRS (or, if such Manufacturer is not rated by DBRS, a DBRS Equivalent Rating) of at least “BBB (low)” as of such date and (b) the denominator of which is the aggregate Net Book Value of all Vehicles leased under the AESOP I Operating Lease as of such date.  
“Series 2019-3 DBRS Highest Enhancement Rate” means, as of any date of determination, the sum of (a) 26.85% and (b) the highest, for any calendar month within the preceding twelve (12) calendar months, of the greater of (x) an amount (not less than zero) equal to 100% minus the Measurement Month Average for the immediately preceding Measurement Month and (y) an amount (not less than zero) equal to 100% minus the Market Value Average as of the Determination Date within such calendar month (excluding the Market Value Average for any Determination Date which has not yet occurred).
“Series 2019-3 DBRS Intermediate Enhanced Vehicle Percentage” means, as of any date of determination, 100% minus the sum of (a) the Series 2019-3 DBRS Lowest Enhanced Vehicle Percentage and (b) the Series 2019-3 DBRS Highest Enhanced Vehicle Percentage.
“Series 2019-3 DBRS Intermediate Enhancement Rate” means, as of any date of determination, the sum of (a) 20.85% and (b) the highest, for any calendar month within the preceding twelve (12) calendar months, of the greater of (x) an amount (not less than zero) equal to 100% minus the Measurement Month Average for the immediately preceding Measurement Month and (y) an amount (not less than zero) equal to 100% minus the Market Value Average as of the Determination Date within such calendar month (excluding the Market Value Average for any Determination Date which has not yet occurred).
“Series 2019-3 DBRS Lowest Enhanced Vehicle Percentage” means, as of any date of determination, a fraction, expressed as a percentage, (a) the numerator of which is the sum, without duplication, of (1) the aggregate Net Book Value of all Program Vehicles leased under the AESOP I Operating Lease that are manufactured by Eligible Program Manufacturers having long-term senior unsecured debt ratings from DBRS (or, with respect to any Manufacturer that is not rated by DBRS, a DBRS Equivalent Rating) of “BBB (low)” or higher as of such date, and (2) so long as any Eligible Non-Program Manufacturer has a long-term senior unsecured debt rating from DBRS (or, if any such Manufacturer is not rated by DBRS, a DBRS Equivalent Rating) of “BBB (low)” or higher and no Manufacturer Event of Default has occurred and is continuing with respect to such Eligible Non-Program Manufacturer, the aggregate Net Book Value of all Non-Program Vehicles leased under the AESOP I Operating Lease manufactured by each such Eligible Non-Program Manufacturer that are subject to a Manufacturer Program and remain eligible for repurchase thereunder as of such date and (b) the denominator of which is the aggregate Net Book Value of all Vehicles leased under the AESOP I Operating Lease as of such date.
“Series 2019-3 DBRS Lowest Enhancement Rate” means, as of any date of determination, 9.85%.

	
			
	 
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“Series 2019-3 DBRS Required Enhancement Amount” means, as of any date of determination, the product of (i) the Series 2019-3 DBRS Required Enhancement Percentage as of such date and (ii) the Series 2019-3 Senior Invested Amount as of such date.
“Series 2019-3 DBRS Required Enhancement Percentage” means, as of any date of determination, the sum of (i) the product of (A) the Series 2019-3 DBRS Lowest Enhancement Rate as of such date and (B) the Series 2019-3 DBRS Lowest Enhanced Vehicle Percentage as of such date, (ii) the product of (A) the Series 2019-3 DBRS Intermediate Enhancement Rate as of such date and (B) the Series 2019-3 DBRS Intermediate Enhanced Vehicle Percentage as of such date, and (iii) the product of (A) the Series 2019-3 DBRS Highest Enhancement Rate as of such date and (B) the Series 2019-3 DBRS Highest Enhanced Vehicle Percentage as of such date.
“Series 2019-3 Demand Note” means each demand note made by a Demand Note Issuer, substantially in the form of Exhibit E, as amended, modified or restated from time to time.
“Series 2019-3 Demand Note Payment Amount” means, as of the Series 2019-3 Letter of Credit Termination Date, the aggregate amount of all proceeds of demands made on the Series 2019-3 Demand Notes pursuant to Section 2.5(b) or (c) that were deposited into the Series 2019-3 Distribution Account and paid to the Series 2019-3 Noteholders during the one year period ending on the Series 2019-3 Letter of Credit Termination Date; provided, however, that if an Event of Bankruptcy (or the occurrence of an event described in clause (a) of the definition thereof, without the lapse of a period of sixty (60) consecutive days) with respect to a Demand Note Issuer shall have occurred during such one year period, the Series 2019-3 Demand Note Payment Amount as of the Series 2019-3 Letter of Credit Termination Date shall equal the Series 2019-3 Demand Note Payment Amount as if it were calculated as of the date of such occurrence.
“Series 2019-3 Deposit Date” is defined in Section 2.2.
“Series 2019-3 Distribution Account” is defined in Section 2.9(a).
“Series 2019-3 Distribution Account Collateral” is defined in Section 2.9(d).
“Series 2019-3 Eligible Letter of Credit Provider” means a Person satisfactory to ABCR and the Demand Note Issuers and having, at the time of the issuance of the related Series 2019-3 Letter of Credit, a long‐term senior unsecured debt rating (or the equivalent thereof) of at least “A1” from Moody’s, at least “A (high)” from DBRS and at least “A+” from Fitch and a short term senior unsecured debt rating of at least “P‐1” from Moody’s, at least “R-1” from DBRS and at least “F1” from Fitch that is (a) a commercial bank having total assets in excess of $500,000,000, (b) a finance company, insurance company or other financial institution that in the ordinary course of business issues letters of credit and has total assets in excess of $200,000,000 or (c) any other financial institution; provided, however, that if a Person is not a Series 2019-3 Letter of Credit Provider (or a letter of credit provider under the Supplement for any other Series of Notes), then such Person shall not be a Series 2019-3 Eligible Letter of Credit Provider until ABRCF has provided ten (10) days’ prior notice to the Rating Agencies that such Person has been proposed as a Series 2019-3 Letter of Credit Provider.

	
			
	 
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“Series 2019-3 Enhancement” means the Series 2019-3 Cash Collateral Account Collateral, the Series 2019-3 Letters of Credit, the Series 2019-3 Demand Notes, the Series 2019-3 Overcollateralization Amount and the Series 2019-3 Required Reserve Account Amount.
“Series 2019-3 Enhancement Amount” means, as of any date of determination, the sum of (i) the Series 2019-3 Overcollateralization Amount as of such date, (ii) the Series 2019-3 Letter of Credit Amount as of such date, (iii) the Series 2019-3 Available Reserve Account Amount as of such date and (iv) the amount of cash and Permitted Investments on deposit in the Series 2019-3 Collection Account (not including amounts allocable to the Series 2019-3 Accrued Interest Account) and the Series 2019-3 Excess Collection Account as of such date.
“Series 2019-3 Enhancement Deficiency” means, on any date of determination, the amount by which the Series 2019-3 Enhancement Amount is less than the Series 2019-3 Required Enhancement Amount as of such date.
“Series 2019-3 Excess Collection Account” is defined in Section 2.1(b).
“Series 2019-3 Expected Final Distribution Date” means the March 2025 Distribution Date.
“Series 2019-3 Final Distribution Date” means the March 2026 Distribution Date.
“Series 2019-3 Interest Period” means a period commencing on and including a Distribution Date and ending on and including the day preceding the next succeeding Distribution Date; provided, however, that the initial Series 2019-3 Interest Period shall commence on and include the Series 2019-3 Closing Date and end on and include September 19, 2019.
 “Series 2019-3 Invested Amount” means, as of any date of determination, the sum of the Class A Invested Amount as of such date, the Class B Invested Amount as of such date, the Class C Invested Amount as of such date and the Class R Invested Amount as of such date.
“Series 2019-3 Invested Percentage” means as of any date of determination:
(a)    when used with respect to Principal Collections, the percentage equivalent (which percentage shall never exceed 100%) of a fraction, the numerator of which shall be equal to the sum of the Series 2019-3 Invested Amount and the Series 2019-3 Overcollateralization Amount, determined during the Series 2019-3 Revolving Period as of the end of the Related Month (or, until the end of the initial Related Month, on the Series 2019-3 Closing Date), or, during the Series 2019-3 Controlled Amortization Period and the Series 2019-3 Rapid Amortization Period, as of the end of the Series 2019-3 Revolving Period, and the denominator of which shall be the greater of (I) the Aggregate Asset Amount as of the end of the Related Month or, until the end of the initial Related Month, as of the Series 2019-3 Closing Date, and (II) as of the same date as in clause (I), the sum of the numerators used to determine the invested percentages for allocations with respect to Principal Collections (for all Series of Notes and all classes of such Series of Notes); and

	
			
	 
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(b)    when used with respect to Interest Collections, the percentage equivalent (which percentage shall never exceed 100%) of a fraction, the numerator of which shall be the Accrued Amounts with respect to the Series 2019-3 Notes on such date of determination, and the denominator of which shall be the aggregate Accrued Amounts with respect to all Series of Notes on such date of determination.
“Series 2019-3 Lease Interest Payment Deficit” means, on any Distribution Date, an amount equal to the excess, if any, of (1) the excess, if any, of (a) the aggregate amount of Interest Collections which pursuant to Section 2.2(a), (b), (c) or (d) would have been allocated to the Series 2019-3 Accrued Interest Account if all payments of Monthly Base Rent required to have been made under the Leases from and excluding the preceding Distribution Date to and including such Distribution Date were made in full over (b) the aggregate amount of Interest Collections which pursuant to Section 2.2(a), (b), (c) or (d) have been allocated to the Series 2019-3 Accrued Interest Account (excluding any amounts paid into the Series 2019-3 Accrued Interest Account pursuant to the proviso in Sections 2.2(c)(ii) and/or 2.2(d)(ii)) from and excluding the preceding Distribution Date to and including the Business Day immediately preceding such Distribution Date over (2) the Class R Monthly Interest with respect to the Series 2019-3 Interest Period ended on the day preceding such Distribution Date. 
“Series 2019-3 Lease Payment Deficit” means either a Series 2019-3 Lease Interest Payment Deficit or a Series 2019-3 Lease Principal Payment Deficit.
“Series 2019-3 Lease Principal Payment Carryover Deficit” means (a) for the initial Distribution Date, zero and (b) for any other Distribution Date, the excess of (x) the Series 2019-3 Lease Principal Payment Deficit, if any, on the preceding Distribution Date over (y) the amount deposited in the Distribution Account on such preceding Distribution Date pursuant to Section 2.5(b) on account of such Series 2019-3 Lease Principal Payment Deficit.
“Series 2019-3 Lease Principal Payment Deficit” means on any Distribution Date, the sum of (a) the Series 2019-3 Monthly Lease Principal Payment Deficit for such Distribution Date and (b) the Series 2019-3 Lease Principal Payment Carryover Deficit for such Distribution Date.
“Series 2019-3 Letter of Credit” means an irrevocable letter of credit, if any, substantially in the form of Exhibit F issued by a Series 2019-3 Eligible Letter of Credit Provider in favor of the Trustee for the benefit of the Series 2019-3 Noteholders.
“Series 2019-3 Letter of Credit Amount” means, as of any date of determination, the lesser of (a) the sum of (i) the aggregate amount available to be drawn on such date under each Series 2019-3 Letter of Credit on which no draw has been made pursuant to Section 2.8(c), as specified therein, and (ii) if the Series 2019-3 Cash Collateral Account has been established and funded pursuant to Section 2.8, the Series 2019-3 Available Cash Collateral Account Amount on such date and (b) the aggregate outstanding principal amount of the Series 2019-3 Demand Notes on such date.

	
			
	 
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“Series 2019-3 Letter of Credit Expiration Date” means, with respect to any Series 2019-3 Letter of Credit, the expiration date set forth in such Series 2019-3 Letter of Credit, as such date may be extended in accordance with the terms of such Series 2019-3 Letter of Credit.
“Series 2019-3 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 2019-3 Letter of Credit on which no draw has been made pursuant to Section 2.8(c), as specified therein, and (b) if the Series 2019-3 Cash Collateral Account has been established and funded pursuant to Section 2.8, the Series 2019-3 Available Cash Collateral Account Amount on such date.
“Series 2019-3 Letter of Credit Provider” means the issuer of a Series 2019-3 Letter of Credit.
“Series 2019-3 Letter of Credit Termination Date” means the first to occur of (a) the date on which the Series 2019-3 Notes are fully paid and (b) the Series 2019-3 Termination Date.
“Series 2019-3 Limited Liquidation Event of Default” means, so long as such event or condition continues, any event or condition of the type specified in clauses (a) through (g) of Article III; provided, however, that any event or condition of the type specified in clauses (a) through (g) of Article III shall not constitute a Series 2019-3 Limited Liquidation Event of Default if the Trustee shall have received the written consent of the Requisite Series 2019-3 Noteholders waiving the occurrence of such Series 2019-3 Limited Liquidation Event of Default.  The Trustee shall promptly (but in any event within two (2) days) provide the Rating Agencies with written notice of such waiver.
“Series 2019-3 Liquidity Amount” means, as of any date of determination, the sum of (a) the Series 2019-3 Letter of Credit Liquidity Amount on such date and (b) the Series 2019-3 Available Reserve Account Amount on such date.
“Series 2019-3 Maximum Hyundai Amount” means, as of any day, an amount equal to 20% of the aggregate Net Book Value of all Vehicles leased under the Leases on such day.
“Series 2019-3 Maximum Individual Isuzu/Subaru Amount” means, as of any day, with respect to Isuzu or Subaru individually, an amount equal to 5% of the aggregate Net Book Value of all Vehicles leased under the Leases on such day.
“Series 2019-3 Maximum Kia Amount” means, as of any day, an amount equal to 10% of the aggregate Net Book Value of all Vehicles leased under the Leases on such day.
“Series 2019-3 Maximum Mitsubishi Amount” means, as of any day, an amount equal to 10% of the aggregate Net Book Value of all Vehicles leased under the Leases on such day.
“Series 2019-3 Maximum Non-Eligible Manufacturer Amount” means, as of any day, an amount equal to 3% of the aggregate Net Book Value of all Vehicles leased under the Leases on such day.

	
			
	 
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“Series 2019-3 Maximum Non-Program Vehicle Amount” means, as of any day, an amount equal to the Series 2019-3 Maximum Non-Program Vehicle Percentage of the aggregate Net Book Value of all Vehicles leased under the Leases on such day.
“Series 2019-3 Maximum Non-Program Vehicle Percentage” means, as of any date of determination, the sum of (a) 85% and (b) a fraction, expressed as a percentage, the numerator of which is the aggregate Net Book Value of all Redesignated Vehicles manufactured by a Bankrupt Manufacturer or a Manufacturer with respect to which a Manufacturer Event of Default has occurred, and in each case leased under the AESOP I Operating Lease or the Finance Lease as of such date, and the denominator of which is the aggregate Net Book Value of all Vehicles leased under the Leases as of such date.
“Series 2019-3 Maximum Specified States Amount” means, as of any day, an amount equal to 7.5% of the aggregate Net Book Value of all Vehicles leased under the Leases on such day.
“Series 2019-3 Maximum Suzuki Amount” means, as of any day, an amount equal to 7.5% of the aggregate Net Book Value of all Vehicles leased under the Leases on such day.
“Series 2019-3 Maximum Used Vehicle Amount” means, as of any day, an amount equal to 25% of the aggregate Net Book Value of all Vehicles leased under the Leases on such day.
“Series 2019-3 Monthly Lease Principal Payment Deficit” means, on any Distribution Date, an amount equal to the excess, if any, of (1) the excess, if any, of (a) the aggregate amount of Principal Collections which pursuant to Section 2.2(a), (b), (c) or (d) would have been allocated to the Series 2019-3 Collection Account if all payments required to have been made under the Leases from and excluding the preceding Distribution Date to and including such Distribution Date were made in full over (b) the aggregate amount of Principal Collections which pursuant to Section 2.2(a), (b), (c) or (d) have been allocated to the Series 2019-3 Collection Account (without giving effect to any amounts paid into the Series 2019-3 Accrued Interest Account pursuant to the proviso in Sections 2.2(c)(ii) and/or 2.2(d)(ii)) from and excluding the preceding Distribution Date to and including the Business Day immediately preceding such Distribution Date over (2) the principal due and payable with respect to the Class R Notes on such Distribution Date. 
“Series 2019-3 Moody’s Highest Enhanced Vehicle Percentage” means, as of any date of determination, a fraction, expressed as a percentage, (a) the numerator of which is the aggregate Net Book Value of all Vehicles leased under the AESOP I Operating Lease that are either not subject to a Manufacturer Program or not eligible for repurchase under a Manufacturer Program as of such date and (b) the denominator of which is the aggregate Net Book Value of all Vehicles leased under the AESOP I Operating Lease as of such date.
“Series 2019-3 Moody’s Highest Enhancement Rate” means, as of any date of determination, the sum of (a) 21.35% and (b) the highest, for any calendar month within the preceding twelve (12) calendar months, of the greater of (x) an amount (not less than zero) equal to 100% minus the Measurement Month Average for the immediately preceding Measurement Month and (y) an amount (not less than zero) equal to 100% minus the Market Value Average as of the 

	
			
	 
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Determination Date within such calendar month (excluding the Market Value Average for any Determination Date which has not yet occurred).
“Series 2019-3 Moody’s Intermediate Enhanced Vehicle Percentage” means, as of any date of determination, 100% minus the sum of (a) the Series 2019-3 Moody’s Lowest Enhanced Vehicle Percentage and (b) the Series 2019-3 Moody’s Highest Enhanced Vehicle Percentage.
“Series 2019-3 Moody’s Intermediate Enhancement Rate” means, as of any date of determination, 16.25%.
“Series 2019-3 Moody’s Lowest Enhanced Vehicle Percentage” means, as of any date of determination, a fraction, expressed as a percentage, (a) the numerator of which is the sum, without duplication, of (1) the aggregate Net Book Value of all Program Vehicles leased under the AESOP I Operating Lease that are manufactured by Eligible Program Manufacturers having a long‐term corporate family rating of “Baa3” or higher from Moody’s as of such date (or, if any Eligible Program Manufacturer does not have a long-term corporate family rating from Moody’s as of such date, a long-term senior unsecured debt rating of at least “Ba1” from Moody’s as of such date), and (2) so long as any Eligible Non‐Program Manufacturer has a long‐term corporate family rating of “Baa3” or higher from Moody’s as of such date (or, if any Eligible Non-Program Manufacturer does not have a long-term corporate family rating from Moody’s as of such date, a long-term senior unsecured debt rating of at least “Ba1” from Moody’s as of such date) and no Manufacturer Event of Default has occurred and is continuing with respect to such Eligible Non‐Program Manufacturer, the aggregate Net Book Value of all Non‐Program Vehicles leased under the AESOP I Operating Lease manufactured by each such Eligible Non‐Program Manufacturer that are subject to a Manufacturer Program and remain eligible for repurchase thereunder as of such date and (b) the denominator of which is the aggregate Net Book Value of all Vehicles leased under the AESOP I Operating Lease as of such date.
“Series 2019-3 Moody’s Lowest Enhancement Rate” means, as of any date of determination, 12.75%.
“Series 2019-3 Moody’s Required Enhancement Amount” means, as of any date of determination, the product of (i) the Series 2019-3 Moody’s Required Enhancement Percentage as of such date and (ii) the Series 2019-3 Senior Invested Amount as of such date.
“Series 2019-3 Moody’s Required Enhancement Percentage” means, as of any date of determination, the sum of (i) the product of (A) the Series 2019-3 Moody’s Lowest Enhancement Rate as of such date and (B) the Series 2019-3 Moody’s Lowest Enhanced Vehicle Percentage as of such date, (ii) the product of (A) the Series 2019-3 Moody’s Intermediate Enhancement Rate as of such date and (B) the Series 2019-3 Moody’s Intermediate Enhanced Vehicle Percentage as of such date, and (iii) the product of (A) the Series 2019-3 Moody’s Highest Enhancement Rate as of such date and (B) the Series 2019-3 Moody’s Highest Enhanced Vehicle Percentage as of such date.
“Series 2019-3 Note Owner” means each beneficial owner of a Series 2019-3 Note. 

	
			
	 
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“Series 2019-3 Noteholder” means any Class A Noteholder, any Class B Noteholder, any Class C Noteholder, any Class R Noteholder or, if the Class D Notes have been issued, any Class D Noteholder.
“Series 2019-3 Notes” means, collectively, the Class A Notes, the Class B Notes, the Class C Notes, the Class D Notes (if issued), and the Class R Notes. 
“Series 2019-3 Overcollateralization Amount” means the excess, if any, of (x) the Series 2019-3 AESOP I Operating Lease Loan Agreement Borrowing Base as of such date over (y) the Series 2019-3 Senior Invested Amount as of such date.
“Series 2019-3 Past Due Rent Payment” is defined in Section 2.2(g).
“Series 2019-3 Percentage” means, as of any date of determination, a fraction, expressed as a percentage, the numerator of which is the Series 2019-3 Invested Amount as of such date and the denominator of which is the Aggregate Invested Amount as of such date.
“Series 2019-3 Principal Allocation” is defined in Section 2.2(a)(ii).
“Series 2019-3 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 2019-3 Notes and ending upon the earliest to occur of (i) the date on which the Series 2019-3 Notes are fully paid, (ii) the Series 2019-3 Final Distribution Date and (iii) the termination of the Indenture.
“Series 2019-3 Reimbursement Agreement” means any and each agreement providing for the reimbursement of a Series 2019-3 Letter of Credit Provider for draws under its Series 2019-3 Letter of Credit as the same may be amended, supplemented, restated or otherwise modified from time to time.
“Series 2019-3 Repurchase Amount” is defined in Section 5.1(a). 
“Series 2019-3 Required AESOP I Operating Lease Vehicle Amount” means, as of any date of determination, the sum of the Series 2019-3 Invested Amount and the Series 2019-3 Required Overcollateralization Amount as of such date.
“Series 2019-3 Required Enhancement Amount” means, as of any date of determination, the sum of (i) the greater of (A) the Series 2019-3 Moody’s Required Enhancement Amount as of such date and (B) the Series 2019-3 DBRS Required Enhancement Amount as of such date, (ii) the Series 2019-3 AESOP I Operating Lease Vehicle Percentage as of the immediately preceding Business Day of the excess, if any, of the Non-Program Vehicle Amount as of such date over the Series 2019-3 Maximum Non-Program Vehicle Amount as of such date, (iii) the Series 2019-3 AESOP I Operating Lease Vehicle Percentage as of the immediately preceding Business Day of the excess, if any, of the aggregate Net Book Value of all Vehicles manufactured by Mitsubishi and leased under the Leases as of such date over the Series 2019-3 Maximum Mitsubishi Amount as of such date, (iv) the Series 2019-3 AESOP I Operating Lease Vehicle Percentage as of the 

	
			
	 
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immediately preceding Business Day of the excess, if any, of the aggregate Net Book Value of all Vehicles manufactured by Isuzu or Subaru, individually, and leased under the Leases as of such date over the Series 2019-3 Maximum Individual Isuzu/Subaru Amount as of such date, (v) the Series 2019-3 AESOP I Operating Lease Vehicle Percentage as of the immediately preceding Business Day of the excess, if any, of the aggregate Net Book Value of all Vehicles manufactured by Hyundai and leased under the Leases as of such date over the Series 2019-3 Maximum Hyundai Amount as of such date, (vi) the Series 2019-3 AESOP I Operating Lease Vehicle Percentage as of the immediately preceding Business Day of the excess, if any, of the aggregate Net Book Value of all Vehicles manufactured by Kia and leased under the Leases as of such date over the Series 2019-3 Maximum Kia Amount as of such date, (vii) the Series 2019-3 AESOP I Operating Lease Vehicle Percentage as of the immediately preceding Business Day of the excess, if any, of the aggregate Net Book Value of all Vehicles manufactured by Suzuki and leased under the Leases as of such date over the Series 2019-3 Maximum Suzuki Amount as of such date, (viii) the Series 2019-3 AESOP I Operating Lease Vehicle Percentage as of the immediately preceding Business Day of the excess, if any, of the Specified States Amount as of such date over the Series 2019-3 Maximum Specified States Amount as of such date, (ix) the Series 2019-3 AESOP I Operating Lease Vehicle Percentage as of the immediately preceding Business Day of the excess, if any, of the Non-Eligible Manufacturer Amount as of such date over the Series 2019-3 Maximum Non-Eligible Manufacturer Amount as of such date and (x) the Series 2019-3 AESOP I Operating Lease Vehicle Percentage as of the immediately preceding Business Day of the excess, if any, of the Net Book Value of all Vehicles leased under the Leases as of such date that were used vehicles at the time of acquisition over the Series 2019-3 Maximum Used Vehicle Amount as of such date.
“Series 2019-3 Required Liquidity Amount” means, as of any date of determination, an amount equal to the product of 2.00% and the Series 2019-3 Senior Invested Amount as of such date. 
“Series 2019-3 Required Overcollateralization Amount” means, as of any date of determination, the excess, if any, of the Series 2019-3 Required Enhancement Amount over the sum of (i) the Series 2019-3 Letter of Credit Amount as of such date, (ii) the Series 2019-3 Available Reserve Account Amount on such date and (iii) the amount of cash and Permitted Investments on deposit in the Series 2019-3 Collection Account (not including amounts allocable to the Series 2019-3 Accrued Interest Account) and the Series 2019-3 Excess Collection Account on such date.
“Series 2019-3 Required Reserve Account Amount” means, for any date of determination, an amount equal to the greater of (a) the excess, if any, of the Series 2019-3 Required Liquidity Amount as of such date over the Series 2019-3 Letter of Credit Liquidity Amount as of such date and (b) the excess, if any, of the Series 2019-3 Required Enhancement Amount as of such date over the Series 2019-3 Enhancement Amount (excluding therefrom the Series 2019-3 Available Reserve Account Amount and calculated after giving effect to any payments of principal to be made on the Series 2019-3 Notes) as of such date.
“Series 2019-3 Reserve Account” is defined in Section 2.7(a).
“Series 2019-3 Reserve Account Collateral” is defined in Section 2.7(d).

	
			
	 
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“Series 2019-3 Reserve Account Surplus” means, with respect to any Distribution Date, the excess, if any, of the Series 2019-3 Available Reserve Account Amount over the Series 2019-3 Required Reserve Account Amount on such Distribution Date.
“Series 2019-3 Revolving Period” means the period from and including the Series 2019-3 Closing Date to the earlier of (i) the commencement of the Series 2019-3 Controlled Amortization Period and (ii) the commencement of the Series 2019-3 Rapid Amortization Period.
“Series 2019-3 Senior Invested Amount” means, on any date, the sum of the Class A Invested Amount on such date, the Class B Invested Amount on such date and the Class C Invested Amount on such date. 
“Series 2019-3 Senior Monthly Interest” means, with respect to any Distribution Date, the sum of the Class A Monthly Interest, the Class B Monthly Interest and the Class C Monthly Interest, in each case with respect to the Series 2019-3 Interest Period ended on the day preceding such Distribution Date.
“Series 2019-3 Senior Notes” means, collectively, the Class A Notes, the Class B Notes and the Class C Notes.  
“Series 2019-3 Shortfall” means, on any Distribution Date, the sum of the Class A Shortfall, the Class B Shortfall and the Class C Shortfall on such Distribution Date.
“Series 2019-3 Termination Date” means the March 2026 Distribution Date.
“Series 2019-3 Trustee’s Fees” means, for any Distribution Date during the Series 2019-3 Rapid Amortization Period on which there exists a Series 2019-3 Lease Interest Payment Deficit, a portion of the fees payable to the Trustee in an amount equal to the product of (i) the Series 2019-3 Percentage as of the beginning of the Series 2019-3 Interest Period ending on the day preceding such Distribution Date and (ii) the fees owing to the Trustee under the Base Indenture; provided, however, that the Series 2019-3 Trustee’s Fees in the aggregate for all Distribution Dates shall not exceed 1.1% of the Series 2019-3 Required AESOP I Operating Lease Vehicle Amount as of the last day of the Series 2019-3 Revolving Period.
 “Supplement” is defined in the preamble hereto.
“Temporary Global Class A Note” is defined in Section 4.2.
“Temporary Global Class B Note” is defined in Section 4.2.
“Temporary Global Class C Note” is defined in Section 4.2.
“Temporary Global Class R Note” is defined in Section 4.2.
“Temporary Global Series 2019-3 Notes” is defined in Section 4.2.

	
			
	 
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“Termination Date Disbursement” means an amount drawn under a Series 2019-3 Letter of Credit pursuant to a Certificate of Termination Date Demand.
“Termination Disbursement” means an amount drawn under a Series 2019-3 Letter of Credit pursuant to a Certificate of Termination Demand.
“Trustee” is defined in the recitals hereto.
“Unpaid Demand Note Disbursement” means an amount drawn under a Series 2019-3 Letter of Credit pursuant to a Certificate of Unpaid Demand Note Demand.
“U.S. Risk Retention Rules” means the federal interagency credit risk retention rules, codified at 17 C.F.R. Part 246.
“U.S. Treasury Rate” means, with respect to any Remaining Distribution Amount, a rate determined one Business Day prior to the Optional Repurchase Distribution Date that is equal to the U.S. Treasury rate on such date (determined by reference to Bloomberg Financial Markets Commodities News) with a maturity equal to the period from such Optional Repurchase Distribution Date to the Applicable Distribution Date with respect to such Remaining Distribution Amount (or, if such maturity is unavailable, such rate shall be determined by linear interpolation using the U.S. Treasury rates with the two closest maturities to such period).
(c)    Any amounts calculated by reference to the Series 2019-3 Invested Amount (or any component thereof) on any date shall, unless otherwise stated, be calculated after giving effect to any payment of principal made to the applicable Class A Noteholders, applicable Class B Noteholders, applicable Class C Noteholders and applicable Class R Noteholders on such date.
ARTICLE II 
 
SERIES 2019-3 ALLOCATIONS
With respect to the Series 2019-3 Notes, the following shall apply:
Section 2.1.    Establishment of Series 2019-3 Collection Account, Series 2019-3 Excess Collection Account and Series 2019-3 Accrued Interest Account.  
(a)    All Collections allocable to the Series 2019-3 Notes shall be allocated to the Collection Account.
(b)    The Trustee will create three administrative subaccounts within the Collection Account for the benefit of the Series 2019-3 Noteholders: the Series 2019-3 Collection Account (such sub‐account, the “Series 2019-3 Collection Account”), the Series 2019-3 Excess Collection Account (such sub‐account, the “Series 2019-3 Excess Collection Account”) and the Series 2019-3 Accrued Interest Account (such sub‐account, the “Series 2019-3 Accrued Interest Account”).

	
			
	 
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Section 2.2.    Allocations with Respect to the Series 2019-3 Notes.  The net proceeds from the initial sale of the Class A Notes, Class B Notes, Class C Notes and Class R Notes will be deposited into the Collection Account on the Series 2019-3 Closing Date and the net proceeds from any issuance of Class D Notes and Additional Class R Notes shall be deposited into the Collection Account on the Additional Notes Closing Date.  On each Business Day on which Collections are deposited into the Collection Account (each such date, a “Series 2019-3 Deposit Date”), the Administrator will direct the Trustee in writing pursuant to the Administration Agreement to allocate all amounts deposited into the Collection Account in accordance with the provisions of this Section 2.2.
(a)    Allocations of Collections During the Series 2019-3 Revolving Period.  During the Series 2019-3 Revolving Period, the Administrator will direct the Trustee in writing pursuant to the Administration Agreement to allocate, prior to 11:00 a.m. (New York City time) on each Series 2019-3 Deposit Date, all amounts deposited into the Collection Account as set forth below:
(i)    allocate to the Series 2019-3 Collection Account an amount equal to the Series 2019-3 Invested Percentage (as of such day) of the aggregate amount of Interest Collections on such day.  All such amounts allocated to the Series 2019-3 Collection Account shall be further allocated to the Series 2019-3 Accrued Interest Account; and
(ii)    allocate to the Series 2019-3 Excess Collection Account an amount equal to the Series 2019-3 Invested Percentage (as of such day) of the aggregate amount of Principal Collections on such day (for any such day, the “Series 2019-3 Principal Allocation”).
(b)    Allocations of Collections During the Series 2019-3 Controlled Amortization Period.  With respect to the Series 2019-3 Controlled Amortization Period, the Administrator will direct the Trustee in writing pursuant to the Administration Agreement to allocate, prior to 11:00 a.m.  (New York City time) on any Series 2019-3 Deposit Date, all amounts deposited into the Collection Account as set forth below:
(i)    allocate to the Series 2019-3 Collection Account an amount determined as set forth in Section 2.2(a)(i) above for such day, which amount shall be further allocated to the Series 2019-3 Accrued Interest Account; and
(ii)    allocate to the Series 2019-3 Collection Account an amount equal to the Series 2019-3 Principal Allocation for such day, which amount shall be used to make principal payments in respect of the Series 2019-3 Notes in accordance with Section 2.5, (A) first, in respect of the Class A Notes in an amount equal to the Class A Controlled Distribution Amount, (B) second, in respect of the Class B Notes in an amount equal to the Class B Controlled Distribution Amount, (C) third, in respect of the Class C Notes in an amount equal to the Class C Controlled Distribution Amount and (D) fourth, in respect of the Class R Notes in an amount equal to the Class R Controlled Amortization Amount, in each case with respect to the Related Month; provided, however, that if the Monthly Total Principal Allocation exceeds the sum of the Class A Controlled Distribution Amount, the 

	
			
	 
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Class B Controlled Distribution Amount, the Class C Controlled Distribution Amount and the Class R Controlled Amortization Amount, in each case with respect to the Related Month, then the amount of such excess shall be allocated to the Series 2019-3 Excess Collection Account.
(c)    Allocations of Collections During the Series 2019-3 Rapid Amortization Period.  With respect to the Series 2019-3 Rapid Amortization Period, other than after the occurrence of an Event of Bankruptcy with respect to ABCR, any other Lessee or any Permitted Sublessee, the Administrator will direct the Trustee in writing pursuant to the Administration Agreement to allocate, prior to 11:00 a.m. (New York City time) on any Series 2019-3 Deposit Date, all amounts deposited into the Collection Account as set forth below:
(i)    allocate to the Series 2019-3 Collection Account an amount determined as set forth in Section 2.2(a)(i) above for such day, which amount shall be further allocated to the Series 2019-3 Accrued Interest Account; and
(ii)    allocate to the Series 2019-3 Collection Account an amount equal to the Series 2019-3 Principal Allocation for such day, which amount shall be used in accordance with Section 2.5 to make principal payments in respect of the Class A Notes until the Class A Notes have been paid in full, and after the Class A Notes have been paid in full shall be used to make principal payments in respect of the Class B Notes until the Class B Notes have been paid in full, and after the Class A Notes and Class B Notes have been paid in full shall be used to make principal payments in respect of the Class C Notes until the Class C Notes have been paid in full, and after the Class A Notes, the Class B Notes and the Class C Notes have been paid in full (including interest thereon) shall be used to make principal payments in respect of the Class R Notes until the Class R Notes have been paid in full; provided, however, that if on any Determination Date (A) the Administrator determines that the amount anticipated to be available from Interest Collections allocable to the Series 2019-3 Notes and other amounts available pursuant to Section 2.3 to pay the sum of (x) the Series 2019-3 Senior Monthly Interest for the next succeeding Distribution Date and (y) any unpaid Series 2019-3 Shortfall on such Distribution Date (together with interest on such Series 2019-3 Shortfall) will be less than the sum of (I) the Series 2019-3 Senior Monthly Interest for such Distribution Date and (II) such Series 2019-3 Shortfall (together with interest thereon) and (B) the Series 2019-3 Enhancement Amount is greater than zero, then the Administrator shall direct the Trustee in writing to reallocate a portion of the Principal Collections allocated to the Series 2019-3 Notes during the Related Month equal to the lesser of such insufficiency and the Series 2019-3 Enhancement Amount to the Series 2019-3 Accrued Interest Account to be treated as Interest Collections on such Distribution Date;  provided further, however, that if on any Determination Date the Administrator determines that, after giving effect the preceding proviso, the amount anticipated to be available from Interest Collections allocable to the Series 2019-3 Notes and other amounts available pursuant to Section 2.3 to pay the sum of (x) the Series 2019-3 Senior Monthly Interest for the next succeeding Distribution Date and (y) any unpaid Series 2019-3 Shortfall on such Distribution Date (together with interest on such Series 2019-3 Shortfall) will be less than the sum of (I) the Series 2019-3 Senior Monthly Interest for such 

	
			
	 
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Distribution Date and (II) such Series 2019-3 Shortfall (together with interest thereon),  then the Administrator shall direct the Trustee in writing to reallocate a portion of the Principal Collections allocated to the Series 2019-3 Notes during the Related Month equal to the lesser of (1) the amount of such Principal Collections that is anticipated to remain after the payment of the Series 2019-3 Senior Invested Amount in full, and (2) any such interest due and owing in respect of the Class A Notes, the Class B Notes or the Class C Notes to the 2019-3 Accrued Interest Account to be treated as Interest Collections on such Distribution Date.
(d)    Allocations of Collections after the Occurrence of an Event of Bankruptcy.  After the occurrence of an Event of Bankruptcy with respect to ABCR, any other Lessee or any Permitted Sublessee, the Administrator will direct the Trustee in writing pursuant to the Administration Agreement to allocate, prior to 11:00 a.m.  (New York City time) on any Series 2019-3 Deposit Date, all amounts attributable to the AESOP I Operating Lease Loan Agreement deposited into the Collection Account as set forth below:
(i)    allocate to the Series 2019-3 Collection Account an amount equal to the Series 2019-3 AESOP I Operating Lease Vehicle Percentage as of the date of the occurrence of such Event of Bankruptcy of the aggregate amount of Interest Collections made under the AESOP I Operating Lease Loan Agreement for such day. All such amounts allocated to the Series 2019-3 Collection Account shall be further allocated to the Series 2019-3 Accrued Interest Account; and
(ii)    allocate to the Series 2019-3 Collection Account an amount equal to the Series 2019-3 AESOP I Operating Lease Vehicle Percentage as of the date of the occurrence of such Event of Bankruptcy of the aggregate amount of Principal Collections made under the AESOP I Operating Lease Loan Agreement, which amount shall be used in accordance with Section 2.5, to make principal payments in respect of the Class A Notes until the Class A Notes have been paid in full, and after the Class A Notes have been paid in full shall be used to make principal payments in respect of the Class B Notes until the Class B Notes have been paid in full, and after the Class A Notes and the Class B Notes have been paid in full shall be used to make principal payments in respect of the Class C Notes until the Class C Notes have been paid in full and after the Class A Notes, the Class B Notes and the Class C Notes have been paid in full (including interest thereon), shall be used to make principal payments in respect of the Class R Notes until the Class R Notes have been paid in full; provided, however, that if on any Determination Date (A) the Administrator determines that the amount anticipated to be available from Interest Collections allocable to the Series 2019-3 Notes and other amounts available pursuant to Section 2.3 to pay the sum of (x) the Series 2019-3 Senior Monthly Interest for the next succeeding Distribution Date and (y) any unpaid Series 2019-3 Shortfall on such Distribution Date (together with interest on such Series 2019-3 Shortfall) will be less than the sum of (I) the Series 2019-3 Senior Monthly Interest for such Distribution Date and (II) such Series 2019-3 Shortfall (together with interest thereon) and (B) the Series 2019-3 Enhancement Amount is greater than zero, then the Administrator shall direct the Trustee in writing to reallocate a portion of the Principal Collections allocated to the Series 2019-3 Notes during the Related Month equal to the lesser of such insufficiency and the Series 2019-3 

	
			
	 
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Enhancement Amount to the Series 2019-3 Accrued Interest Account to be treated as Interest Collections on such Distribution Date; provided further, however, that if on any Determination Date the Administrator determines that, after giving effect the preceding proviso, the amount anticipated to be available from Interest Collections allocable to the Series 2019-3 Notes and other amounts available pursuant to Section 2.3 to pay the sum of (x) the Series 2019-3 Senior Monthly Interest for the next succeeding Distribution Date and (y) any unpaid Series 2019-3 Shortfall on such Distribution (together with interest in such Series 2019-3 Shortfall), will be less than the sum of (I) the Series 2019-3 Senior Monthly Interest for such Distribution Date and (II) such Series 2019-3 Shortfall (together with interest thereon),  then the Administrator shall direct the Trustee in writing to reallocate any portion of the Principal Collections allocated to the Series 2019-3 Notes during the Related Month equal to the lesser of (1) the amount of such Principal Collections that is anticipated to remain after the payment of the Series 2019-3 Senior Invested Amount in full, and (2) any such interest due and owing in respect of the Class A Notes, the Class B Notes or the Class C Notes to the 2019-3 Accrued Interest Account to be treated as Interest Collections on such Distribution Date.
(e)    Series 2019-3 Excess Collection Account.  Amounts allocated to the Series 2019-3 Excess Collection Account on any Series 2019-3 Deposit Date will be (w) first, deposited in the Series 2019-3 Reserve Account in an amount up to the excess, if any, of the Series 2019-3 Required Reserve Account Amount for such date over the Series 2019-3 Available Reserve Account Amount for such date, (x) second, used to pay the principal amount of other Series of Notes that are then in amortization, (y) third, released to AESOP Leasing in an amount equal to the product of (A) the Loan Agreement’s Share with respect to the AESOP I Operating Lease Loan Agreement as of such date and (B) 100% minus the Loan Payment Allocation Percentage with respect to the AESOP I Operating Lease Loan Agreement as of such date and (C) the amount of any remaining funds and (z) fourth, paid to ABRCF for any use permitted by the Related Documents including to make Loans under the Loan Agreements to the extent the Borrowers have requested Loans thereunder and Eligible Vehicles are available for financing thereunder; provided, however, that in the case of clauses (x), (y) and (z), that no Amortization Event, Series 2019-3 Enhancement Deficiency or AESOP I Operating Lease Vehicle Deficiency would result therefrom or exist immediately thereafter.  Upon the occurrence of an Amortization Event and once a Trust Officer has actual knowledge of the Amortization Event, funds on deposit in the Series 2019-3 Excess Collection Account will be withdrawn by the Trustee, deposited in the Series 2019-3 Collection Account and allocated as Principal Collections to reduce the Series 2019-3 Invested Amount on the immediately succeeding Distribution Date.
(f)    Allocations From Other Series.  Amounts allocated to other Series of Notes that have been reallocated by ABRCF to the Series 2019-3 Notes (i) during the Series 2019-3 Revolving Period shall be allocated to the Series 2019-3 Excess Collection Account and applied in accordance with Section 2.2(e) and (ii) during the Series 2019-3  Controlled Amortization Period or the Series 2019-3 Rapid Amortization Period shall be allocated to the Series 2019-3 Collection Account and applied in accordance with Section 2.2(b) or 2.2(c), as applicable, to make principal payments in respect of the Series 2019-3 Notes.

	
			
	 
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(g)    Past Due Rent Payments.  Notwithstanding the foregoing, if in the case of Section 2.2(a) or (b), after the occurrence of a Series 2019-3 Lease Payment Deficit, the Lessees shall make payments of Monthly Base Rent or other amounts payable by the Lessees under the Leases on or prior to the fifth Business Day after the occurrence of such Series 2019-3 Lease Payment Deficit (a “Past Due Rent Payment”), the Administrator shall direct the Trustee in writing pursuant to the Administration Agreement to allocate to the Series 2019-3 Collection Account an amount equal to the Series 2019-3 Invested Percentage as of the date of the occurrence of such Series 2019-3 Lease Payment Deficit of the Collections attributable to such Past Due Rent Payment (the “Series 2019-3 Past Due Rent Payment”).  The Administrator shall instruct the Trustee in writing pursuant to the Administration Agreement to withdraw from the Series 2019-3 Collection Account and apply the Series 2019-3 Past Due Rent Payment in the following order:
(i)    if the occurrence of such Series 2019-3 Lease Payment Deficit resulted in one or more Lease Deficit Disbursements being made under the Series 2019-3 Letters of Credit, pay to each Series 2019-3 Letter of Credit Provider who made such a Lease Deficit Disbursement for application in accordance with the provisions of the applicable Series 2019-3 Reimbursement Agreement an amount equal to the lesser of (x) the unreimbursed amount of such Series 2019-3 Letter of Credit Provider’s Lease Deficit Disbursement and (y) such Series 2019-3 Letter of Credit Provider’s Pro Rata Share of the Series 2019-3 Past Due Rent Payment;
(ii)    if the occurrence of such Series 2019-3 Lease Payment Deficit resulted in a withdrawal being made from the Series 2019-3 Cash Collateral Account, deposit in the Series 2019-3 Cash Collateral Account an amount equal to the lesser of (x) the amount of the Series 2019-3 Past Due Rent Payment remaining after any payment pursuant to clause (i) above and (y) the amount withdrawn from the Series 2019-3 Cash Collateral Account on account of such Series 2019-3 Lease Payment Deficit;
(iii)    if the occurrence of such Series 2019-3 Lease Payment Deficit resulted in a withdrawal being made from the Series 2019-3 Reserve Account pursuant to Section 2.3(d), deposit in the Series 2019-3 Reserve Account an amount equal to the lesser of (x) the amount of the Series 2019-3 Past Due Rent Payment remaining after any payments pursuant to clauses (i) and (ii) above and (y) the excess, if any, of the Series 2019-3 Required Reserve Account Amount over the Series 2019-3 Available Reserve Account Amount on such day; 
(iv)    allocate to the Series 2019-3 Accrued Interest Account the amount, if any, by which the Series 2019-3 Lease Interest Payment Deficit, if any, relating to such Series 2019-3 Lease Payment Deficit exceeds the amount of the Series 2019-3 Past Due Rent Payment applied pursuant to clauses (i), (ii) and (iii) above; and 
(v)    treat the remaining amount of the Series 2019-3 Past Due Rent Payment as Principal Collections allocated to the Series 2019-3 Notes in accordance with Section 2.2(a)(ii) or 2.2(b)(ii), as the case may be.

	
			
	 
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Section 2.3.    Payments to Noteholders.  On each Determination Date, as provided below, the Administrator shall instruct the Paying Agent in writing pursuant to the Administration Agreement to withdraw, and on the following Distribution Date the Paying Agent, acting in accordance with such instructions, shall withdraw the amounts required to be withdrawn from the Collection Account pursuant to Section 2.3(a) below in respect of all funds available from Interest Collections processed since the preceding Distribution Date and allocated to the holders of the Series 2019-3 Notes.
(a)    Note Interest with Respect to the Series 2019-3 Notes.  On each Determination Date, the Administrator shall instruct the Trustee and the Paying Agent in writing pursuant to the Administration Agreement as to the amount to be withdrawn and paid pursuant to Section 2.4 from the Series 2019-3 Accrued Interest Account to the extent funds are anticipated to be available from Interest Collections allocable to the Series 2019-3 Notes processed from but not including the preceding Distribution Date through the succeeding Distribution Date in respect of (i) an amount equal to the Class A Monthly Interest for the Series 2019-3 Interest Period ending on the day preceding the related Distribution Date, (ii) an amount equal to the amount of any unpaid Class A Shortfall as of the preceding Distribution Date (together with any accrued interest on such Class A Shortfall), (iii) an amount equal to the Class B Monthly Interest for the Series 2019-3 Interest Period ending on the day preceding the related Distribution Date, (iv) an amount equal to the amount of any unpaid Class B Shortfall as of the preceding Distribution Date (together with any accrued interest on such Class B Shortfall), (v) an amount equal to the Class C Monthly Interest for the Series 2019-3 Interest Period ending on the day preceding the related Distribution Date, (vi) an amount equal to the amount of any unpaid Class C Shortfall as of the preceding Distribution Date (together with any accrued interest on such Class C Shortfall), (vii) an amount equal to the Class R Monthly Interest for the Series 2019-3 Interest Period ending on the day preceding the related Distribution Date and (viii) an amount equal to the amount of any unpaid Class R Shortfall as of the preceding Distribution Date (together with any accrued interest on such Class R Shortfall).  On the following Distribution Date, the Trustee shall withdraw the amounts described in the first sentence of this Section 2.3(a) from the Series 2019-3 Accrued Interest Account and deposit such amounts in the Series 2019-3 Distribution Account.
(b)    Lease Payment Deficit Notice.  On or before 3:00 p.m. (New York City time) on the Business Day immediately preceding each Distribution Date, the Administrator shall notify the Trustee of the amount of any Series 2019-3 Lease Payment Deficit, such notification to be in the form of Exhibit G (each a “Lease Payment Deficit Notice”).
(c)    Draws on Series 2019-3 Letters of Credit For Series 2019-3 Lease Interest Payment Deficits.  If the Administrator determines on the Business Day immediately preceding any Distribution Date that on such Distribution Date there will exist a Series 2019-3 Lease Interest Payment Deficit, the Administrator shall, on or prior to 3:00 p.m. (New York City time) on such Business Day, instruct the Trustee in writing to draw on the Series 2019-3 Letters of Credit, if any, and, the Trustee shall, by 5:00 p.m. (New York City time) on such Business Day draw an amount as set forth in such notice equal to the least of (i) such Series 2019-3 Lease Interest Payment Deficit, (ii) the excess, if any, of the sum of (A) the amounts described in clauses (i) through (vi) of Section 2.3(a) above for such Distribution Date and (B) during the Series 2019-3 Rapid Amortization Period, 

	
			
	 
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the Series 2019-3 Trustee’s Fees for such Distribution Date, over the amounts available from the Series 2019-3 Accrued Interest Account and (iii) the Series 2019-3 Letter of Credit Liquidity Amount on the Series 2019-3 Letters of Credit by presenting to each Series 2019-3 Letter of Credit Provider a draft accompanied by a Certificate of Lease Deficit Demand and shall cause the Lease Deficit Disbursements to be deposited in the Series 2019-3 Distribution Account on such date; provided, however, that if the Series 2019-3 Cash Collateral Account has been established and funded, the Trustee shall withdraw from the Series 2019-3 Cash Collateral Account and deposit in the Series 2019-3 Distribution Account an amount equal to the lesser of (x) the Series 2019-3 Cash Collateral Percentage on such date of the least of the amounts described in clauses (i), (ii) and (iii) above and (y) the Series 2019-3 Available Cash Collateral Account Amount on such date and draw an amount equal to the remainder of such amount on the Series 2019-3 Letters of Credit.
(d)    Withdrawals from Series 2019-3 Reserve Account.  If the Administrator determines on any Distribution Date that the amounts available from the Series 2019-3 Accrued Interest Account plus the amount, if any, to be drawn under the Series 2019-3 Letters of Credit and/or withdrawn from the Series 2019-3 Cash Collateral Account pursuant to Section 2.3(c) are insufficient to pay the sum of (A) the amounts described in clauses (i) through (vi) of Section 2.3(a) above on such Distribution Date and (B) during the Series 2019-3 Rapid Amortization Period, the Series 2019-3 Trustee’s Fees for such Distribution Date, the Administrator shall instruct the Trustee in writing to withdraw from the Series 2019-3 Reserve Account and deposit in the Series 2019-3 Distribution Account on such Distribution Date an amount equal to the lesser of the Series 2019-3 Available Reserve Account Amount and such insufficiency.  The Trustee shall withdraw such amount from the Series 2019-3 Reserve Account and deposit such amount in the Series 2019-3 Distribution Account.
(e)    [RESERVED].
(f)    Balance.  On or prior to the second Business Day preceding each Distribution Date, the Administrator shall instruct the Trustee and the Paying Agent in writing pursuant to the Administration Agreement to pay the balance (after making the payments required in Section 2.4), if any, of the amounts available from the Series 2019-3 Accrued Interest Account and the Series 2019-3 Distribution Account, plus the amount, if any, drawn under the Series 2019-3 Letters of Credit and/or withdrawn from the Series 2019-3 Cash Collateral Account pursuant to Section 2.3(c) plus the amount, if any, withdrawn from the Series 2019-3 Reserve Account pursuant to Section 2.3(d) as follows:
(i)    on each Distribution Date during the Series 2019-3 Revolving Period or the Series 2019-3 Controlled Amortization Period, (1) first, to the Administrator, an amount equal to the Series 2019-3 Percentage as of the beginning of the Series 2019-3 Interest Period ending on the day preceding such Distribution Date of the portion of the Monthly Administration Fee payable by ABRCF (as specified in clause (iii) of the definition thereof) for such Series 2019-3 Interest Period, (2) second, to the Trustee, an amount equal to the Series 2019-3 Percentage as of the beginning of such Series 2019-3 Interest Period of the fees owing to the Trustee under the Base Indenture for such Series 2019-3 Interest Period, (3) third to pay any Carrying Charges (other than Carrying Charges provided for 

	
			
	 
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above) to the Persons to whom such amounts are owed, an amount equal to the Series 2019-3 Percentage as of the beginning of such Series 2019-3 Interest Period of such Carrying Charges (other than Carrying Charges provided for above) for such Series 2019-3 Interest Period and (4) fourth, the balance, if any, shall be withdrawn by the Paying Agent from the Series 2019-3 Collection Account and deposited in the Series 2019-3 Excess Collection Account; and
(ii)    on each Distribution Date during the Series 2019-3 Rapid Amortization Period, (1) first, to the Trustee, an amount equal to the Series 2019-3 Percentage as of the beginning of such Series 2019-3 Interest Period ending on the day preceding such Distribution Date of the fees owing to the Trustee under the Base Indenture for such Series 2019-3 Interest Period, (2) second, to the Administrator, an amount equal to the Series 2019-3 Percentage as of the beginning of such Series 2019-3 Interest Period of the portion of the Monthly Administration Fee (as specified in clause (iii) of the definition thereof) payable by ABRCF for such Series 2019-3 Interest Period, (3) third, to pay any Carrying Charges (other than Carrying Charges provided for above) to the Persons to whom such amounts are owed, an amount equal to the Series 2019-3 Percentage as of the beginning of such Series 2019-3 Interest Period of such Carrying Charges (other than Carrying Charges provided for above) for such Series 2019-3 Interest Period and (4) fourth, so long as the Series 2019-3 Invested Amount is greater than the Monthly Total Principal Allocations for the Related Month, an amount equal to the excess of the Series 2019-3 Invested Amount over the Monthly Total Principal Allocations for the Related Month shall be treated as Principal Collections.
(g)    Shortfalls.  
(i)      If the amounts described in Section 2.3 are insufficient to pay the Class A Monthly Interest on any Distribution Date, payments of interest to the Class A Noteholders will be reduced on a pro rata basis by the amount of such deficiency.  The aggregate amount, if any, of such deficiency on any Distribution Date, together with the aggregate unpaid amount of any such deficiencies with respect to all prior Distribution Dates, shall be referred to as the “Class A Shortfall”.  Interest shall accrue on the Class A Shortfall at the Class A Note Rate.  
(ii)    If the amounts described in Section 2.3 are insufficient to pay the amounts described in clauses (i) and (ii) of Section 2.3(a) and the Class B Monthly Interest on any Distribution Date, payments of interest to the Class B Noteholders will be reduced on a pro rata basis by the amount of such deficiency.  The aggregate amount, if any, of such deficiency on any Distribution Date (which deficiency on any Distribution Date shall not exceed the Class B Monthly Interest for the Series 2019-3 Interest Period ended on the day preceding such Distribution Date), together with the aggregate unpaid amount of any such deficiencies with respect to all prior Distribution Dates, shall be referred to as the “Class B Shortfall”.  Interest shall accrue on the Class B Shortfall at the Class B Note Rate.
(iii)    If the amounts described in Section 2.3 are insufficient to pay the amounts described in clauses (i) through (iv) of Section 2.3(a) and the Class C Monthly Interest on any Distribution Date, payments of interest to the Class C Noteholders will be 

	
			
	 
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reduced on a pro rata basis by the amount of such deficiency. The aggregate amount, if any, of such deficiency on any Distribution Date (which deficiency on any Distribution Date shall not exceed the Class C Monthly Interest for the Series 2019-3 Interest Period ended on the day preceding such Distribution Date), together with the aggregate unpaid amount of any such deficiencies with respect to all prior Distribution Dates, shall be referred to as the “Class C Shortfall”.  Interest shall accrue on the Class C Shortfall at the Class C Note Rate.
(iv)    If the amounts described in Section 2.3 are insufficient to pay the amounts described in clauses (i) through (vi) of Section 2.3(a) and the Class R Monthly Interest on any Distribution Date, payments of interest to the Class R Noteholders will be reduced on a pro rata basis by the amount of such deficiency. The aggregate amount, if any, of such deficiency on any Distribution Date (which deficiency on any Distribution Date shall not exceed the Class R Monthly Interest for the Series 2019-3 Interest Period ended on the day preceding such Distribution Date), together with the aggregate unpaid amount of any such deficiencies with respect to all prior Distribution Dates, shall be referred to as the “Class R Shortfall”.  Interest shall accrue on the Class R Shortfall at the Class R Note Rate.
Section 2.4.    Payment of Note Interest.  (a)  On each Distribution Date, subject to Section 9.8 of the Base Indenture, the Paying Agent shall, in accordance with Section 6.1 of the Base Indenture, pay the following amounts in the following order of priority from amounts deposited into the Series 2019-3 Distribution Account pursuant to Section 2.3:
(i)    first, to the Class A Noteholders, the amounts due to the Class A Noteholders described in Sections 2.3(a)(i) and (ii); 
(ii)    second, to the Class B Noteholders, the amounts due to the Class B Noteholders described in Sections 2.3(a)(iii) and (iv); 
(iii)    third, to the Class C Noteholders, the amounts due to the Class C Noteholders described in Sections 2.3(a)(v) and (vi); and
(iv)    fourth, to the Class R Noteholders, the amounts due to the Class R Noteholders described in Sections 2.3(a)(vii) and (viii).
Section 2.5.    Payment of Note Principal. 
(a)    Monthly Payments During Controlled Amortization Period or Rapid Amortization Period. On each Determination Date, commencing on the second Determination Date during the Series 2019-3 Controlled Amortization Period or the first Determination Date after the commencement of the Series 2019-3 Rapid Amortization Period, the Administrator shall instruct the Trustee and the Paying Agent in writing pursuant to the Administration Agreement and in accordance with this Section 2.5 as to (1) the amount allocated to the Series 2019-3 Notes during the Related Month pursuant to Section 2.2(b)(ii), (c)(ii) or (d)(ii), as the case may be, (2) any amounts to be drawn on the Series 2019-3 Demand Notes and/or on the Series 2019-3 Letters of Credit (or 

	
			
	 
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withdrawn from the Series 2019-3 Cash Collateral Account) pursuant to this Section 2.5 and (3) any amounts to be withdrawn from the Series 2019-3 Reserve Account pursuant to this Section 2.5 and deposited into the Series 2019-3 Distribution Account.  On the Distribution Date following each such Determination Date, the Trustee shall withdraw the amount allocated to the Series 2019-3 Notes during the Related Month pursuant to Section 2.2(b)(ii), (c)(ii) or (d)(ii), as the case may be, from the Series 2019-3 Collection Account and deposit such amount in the Series 2019-3 Distribution Account, to be paid to the holders of the Series 2019-3 Notes.
(b)    Principal Draws on Series 2019-3 Letters of Credit.  If the Administrator determines on the Business Day immediately preceding any Distribution Date during the Series 2019-3 Rapid Amortization Period that on such Distribution Date there will exist a Series 2019-3 Lease Principal Payment Deficit, the Administrator shall instruct the Trustee in writing to draw on the Series 2019-3 Letters of Credit, if any, as provided below.  Upon receipt of a notice by the Trustee from the Administrator in respect of a Series 2019-3 Lease Principal Payment Deficit on or prior to 3:00 p.m. (New York City time) on the Business Day immediately preceding a Distribution Date, the Trustee shall, by 5:00 p.m. (New York City time) on such Business Day draw an amount as set forth in such notice equal to the least of (i) such Series 2019-3 Lease Principal Payment Deficit, (ii) the Principal Deficit Amount for such Distribution Date and (iii) the Series 2019-3 Letter of Credit Liquidity Amount on the Series 2019-3 Letters of Credit by presenting to each Series 2019-3 Letter of Credit Provider a draft accompanied by a Certificate of Lease Deficit Demand and shall cause the Lease Deficit Disbursements to be deposited in the Series 2019-3 Distribution Account on such date; provided, however, that if the Series 2019-3 Cash Collateral Account has been established and funded, the Trustee shall withdraw from the Series 2019-3 Cash Collateral Account and deposit in the Series 2019-3 Distribution Account an amount equal to the lesser of (x) the Series 2019-3 Cash Collateral Percentage for such date of the lesser of the Series 2019-3 Lease Principal Payment Deficit and the Principal Deficit Amount for such Distribution Date and (y) the Series 2019-3 Available Cash Collateral Account Amount on such date and draw an amount equal to the remainder of such amount on the Series 2019-3 Letters of Credit.  Notwithstanding any of the preceding to the contrary, during the period after the date of the filing by any of the Lessees of a petition for relief under Chapter 11 of the Bankruptcy Code until the date on which each of the Lessees shall have resumed making all payments of the portion of Monthly Base Rent relating to Loan Interest required to be made under the AESOP I Operating Lease, the Administrator shall only instruct the Trustee to draw on the Series 2019-3 Letters of Credit (or withdraw from the Series 2019-3 Cash Collateral Account, if applicable) pursuant to this Section 2.5(b), and the Trustee shall only draw (or withdraw), an amount equal to the lesser of (i) the amount determined as provided in the preceding sentence and (ii) the excess, if any, of (x) the Series 2019-3 Liquidity Amount on such date over (y) the Series 2019-3 Required Liquidity Amount on such date.
(c)    Final Distribution Date.  Each of the entire Class A Invested Amount, the entire Class B Invested Amount, the entire Class C Invested Amount and the entire Class R Invested Amount shall be due and payable on the Series 2019-3 Final Distribution Date.  In connection therewith:
(i)    Demand Note Draw.  If the amount to be deposited in the Series 2019-3 Distribution Account in accordance with Section 2.5(a) together with any amounts 

	
			
	 
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to be deposited therein in accordance with Section 2.5(b) on the Series 2019-3 Final Distribution Date is less than the Series 2019-3 Senior Invested Amount and there are any Series 2019-3 Letters of Credit on such date, then, prior to 10:00 a.m. (New York City time) on the second Business Day prior to the Series 2019-3 Final Distribution Date, the Administrator shall instruct the Trustee in writing to make a demand (a “Demand Notice”) substantially in the form attached hereto as Exhibit H on the Demand Note Issuers for payment under the Series 2019-3 Demand Notes in an amount equal to the lesser of (i) such insufficiency and (ii) the Series 2019-3 Letter of Credit Amount.  The Trustee shall, prior to 12:00 noon (New York City time) on the second Business Day preceding such Series 2019-3 Final Distribution Date deliver such Demand Notice to the Demand Note Issuers; provided, however, that if an Event of Bankruptcy (or the occurrence of an event described in clause (a) of the definition thereof, without the lapse of a period of sixty (60) consecutive days) with respect to a Demand Note Issuer shall have occurred and be continuing, the Trustee shall not be required to deliver such Demand Notice to such Demand Note Issuer.  The Trustee shall cause the proceeds of any demand on the Series 2019-3 Demand Notes to be deposited into the Series 2019-3 Distribution Account.
(ii)    Letter of Credit Draw.  In the event that either (x) on or prior to 10:00 a.m. (New York City time) on the Business Day immediately preceding the Series 2019-3 Final Distribution Date a Demand Notice has been transmitted by the Trustee to the Demand Note Issuers pursuant to clause (i) of this Section 2.5(c) and any Demand Note Issuer shall have failed to pay to the Trustee or deposit into the Series 2019-3 Distribution Account the amount specified in such Demand Notice in whole or in part or (y) due to the occurrence of an Event of Bankruptcy (or the occurrence of an event described in clause (a) of the definition thereof, without the lapse of a period of sixty (60) consecutive days) with respect to one or more of the Demand Note Issuers, the Trustee shall not have delivered such Demand Notice to any Demand Note Issuer on the second Business Day preceding the Series 2019-3 Final Distribution Date, then, in the case of (x) or (y) the Trustee shall draw on the Series 2019-3 Letters of Credit by 12:00 noon (New York City time) on such Business Day an amount equal to the lesser of (a) the amount that the Demand Note Issuers so failed to pay under the Series 2019-3 Demand Notes (or, the amount that the Trustee failed to demand for payment thereunder) and (b) the Series 2019-3 Letter of Credit Amount on such Business Day by presenting to each Series 2019-3 Letter of Credit Provider a draft accompanied by a Certificate of Unpaid Demand Note Demand; provided, however, that if the Series 2019-3 Cash Collateral Account has been established and funded, the Trustee shall withdraw from the Series 2019-3 Cash Collateral Account and deposit in the Series 2019-3 Distribution Account an amount equal to the lesser of (x) the Series 2019-3 Cash Collateral Percentage on such Business Day of the amount that the Demand Note Issuers so failed to pay under the Series 2019-3 Demand Notes (or, the amount that the Trustee failed to demand for payment thereunder) and (y) the Series 2019-3 Available Cash Collateral Account Amount on such Business Day and draw an amount equal to the remainder of the amount that the Demand Note Issuers failed to pay under the Series 2019-3 Demand Notes (or, the amount that the Trustee failed to demand for payment thereunder) on the Series 2019-3 Letters of Credit.  The Trustee shall deposit, or cause the deposit of, the proceeds of any draw on the 

	
			
	 
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Series 2019-3 Letters of Credit and the proceeds of any withdrawal from the Series 2019-3 Cash Collateral Account to be deposited in the Series 2019-3 Distribution Account.
(iii)    Reserve Account Withdrawal.  If, after giving effect to the deposit into the Series 2019-3 Distribution Account of the amount to be deposited in accordance with Section 2.5(a) and the amounts described in clauses (i) and (ii) of this Section 2.5(c), the amount to be deposited in the Series 2019-3 Distribution Account with respect to the Series 2019-3 Final Distribution Date is or will be less than the Series 2019-3 Senior Invested Amount, then, prior to 12:00 noon (New York City time) on the second Business Day prior to such Series 2019-3 Final Distribution Date, the Administrator shall instruct the Trustee in writing to withdraw from the Series 2019-3 Reserve Account, an amount equal to the lesser of the Series 2019-3 Available Reserve Account Amount and such remaining insufficiency and deposit it in the Series 2019-3 Distribution Account on such Series 2019-3 Final Distribution Date.
(d)    Principal Deficit Amount.  On each Distribution Date, other than the Series 2019-3 Final Distribution Date, on which the Principal Deficit Amount is greater than zero, amounts shall be transferred to the Series 2019-3 Distribution Account as follows: 
(i)    Demand Note Draw.  If on any Determination Date, the Administrator determines that the Principal Deficit Amount with respect to the next succeeding Distribution Date will be greater than zero and there are any Series 2019-3 Letters of Credit on such date, prior to 10:00 a.m. (New York City time) on the second Business Day prior to such Distribution Date, the Administrator shall instruct the Trustee in writing to deliver a Demand Notice to the Demand Note Issuers demanding payment of an amount equal to the lesser of (A) the Principal Deficit Amount and (B) the Series 2019-3 Letter of Credit Amount.  The Trustee shall, prior to 12:00 noon (New York City time) on the second Business Day preceding such Distribution Date, deliver such Demand Notice to the Demand Note Issuers; provided, however, that if an Event of Bankruptcy (or the occurrence of an event described in clause (a) of the definition thereof, without the lapse of a period of sixty (60) consecutive days) with respect to a Demand Note Issuer shall have occurred and be continuing, the Trustee shall not be required to deliver such Demand Notice to such Demand Note Issuer.  The Trustee shall cause the proceeds of any demand on the Series 2019-3 Demand Note to be deposited into the Series 2019-3 Distribution Account.  
(ii)    Letter of Credit Draw.  In the event that either (x) on or prior to 10:00 a.m. (New York City time) on the Business Day prior to such Distribution Date, any Demand Note Issuer shall have failed to pay to the Trustee or deposit into the Series 2019-3 Distribution Account the amount specified in such Demand Notice in whole or in part or (y) due to the occurrence of an Event of Bankruptcy (or the occurrence of an event described in clause (a) of the definition thereof, without the lapse of a period of sixty (60) consecutive days) with respect to any Demand Note Issuer, the Trustee shall not have delivered such Demand Notice to any Demand Note Issuer on the second Business Day preceding such Distribution Date, then, in the case of (x) or (y) the Trustee shall on such Business Day draw on the Series 2019-3 Letters of Credit an amount equal to the lesser of (i) Series 2019-3 

	
			
	 
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Letter of Credit Amount and (ii) the aggregate amount that the Demand Note Issuers failed to pay under the Series 2019-3 Demand Notes (or, the amount that the Trustee failed to demand for payment thereunder) by presenting to each Series 2019-3 Letter of Credit Provider a draft accompanied by a Certificate of Unpaid Demand Note Demand; provided, however, that if the Series 2019-3 Cash Collateral Account has been established and funded, the Trustee shall withdraw from the Series 2019-3 Cash Collateral Account and deposit in the Series 2019-3 Distribution Account an amount equal to the lesser of (x) the Series 2019-3 Cash Collateral Percentage on such Business Day of the aggregate amount that the Demand Note Issuers so failed to pay under the Series 2019-3 Demand Notes (or, the amount that the Trustee failed to demand for payment thereunder) and (y) the Series 2019-3 Available Cash Collateral Account Amount on such Business Day and draw an amount equal to the remainder of the aggregate amount that the Demand Note Issuers failed to pay under the Series 2019-3 Demand Notes (or, the amount that the Trustee failed to demand for payment thereunder) on the Series 2019-3 Letters of Credit.  The Trustee shall deposit into, or cause the deposit of, the proceeds of any draw on the Series 2019-3 Letters of Credit and the proceeds of any withdrawal from the Series 2019-3 Cash Collateral Account to be deposited in the Series 2019-3 Distribution Account.
(iii)    Reserve Account Withdrawal.  If the Series 2019-3 Letter of Credit Amount will be less than the Principal Deficit Amount on any Distribution Date, then, prior to 12:00 noon (New York City time) on the second Business Day prior to such Distribution Date, the Administrator shall instruct the Trustee in writing to withdraw from the Series 2019-3 Reserve Account, an amount equal to the lesser of (x) the Series 2019-3 Available Reserve Account Amount and (y) the amount by which the Principal Deficit Amount exceeds the amounts to be deposited in the Series 2019-3 Distribution Account in accordance with clauses (i) and (ii) of this Section 2.5(d) and deposit it in the Series 2019-3 Distribution Account on such Distribution Date.  
(e)    Distributions.  
(i)    Class A Notes.  On each Distribution Date occurring on or after the date a withdrawal is made from the Series 2019-3 Collection Account pursuant to Section 2.5(a) or amounts are deposited in the Series 2019-3 Distribution Account pursuant to Section 2.5(b), (c) or (d) the Paying Agent shall, in accordance with Section 6.1 of the Base Indenture, pay pro rata to each Class A Noteholder from the Series 2019-3 Distribution Account the amount deposited therein pursuant to Section 2.5(a), (b), (c) or (d), to the extent necessary to pay the Class A Controlled Distribution Amount during the Series 2019-3 Controlled Amortization Period or to the extent necessary to pay the Class A Invested Amount during the Series 2019-3 Rapid Amortization Period.
(ii)    Class B Notes.  On each Distribution Date occurring on or after the date a withdrawal is made from the Series 2019-3 Collection Account pursuant to Section 2.5(a) or amounts are deposited in the Series 2019-3 Distribution Account pursuant to Section 2.5(b), (c) or (d) the Paying Agent shall, in accordance with Section 6.1 of the Base Indenture, pay pro rata to each Class B Noteholder from the Series 2019-3 Distribution Account the 

	
			
	 
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amount deposited therein pursuant to Section 2.5(a), (b), (c) or (d) less the aggregate amount applied to make the payments required pursuant to Section 2.5(e)(i), to the extent necessary to pay the Class B Controlled Distribution Amount during the Series 2019-3 Controlled Amortization Period or to the extent necessary to pay the Class B Invested Amount during the Series 2019-3 Rapid Amortization Period.
(iii)    Class C Notes.  On each Distribution Date occurring on or after the date a withdrawal is made from the Series 2019-3 Collection Account pursuant to Section 2.5(a) or amounts are deposited in the Series 2019-3 Distribution Account pursuant to Section 2.5(b), (c) or (d) the Paying Agent shall, in accordance with Section 6.1 of the Base Indenture, pay pro rata to each Class C Noteholder from the Series 2019-3 Distribution Account the amount deposited therein pursuant to Section 2.5(a), (b), (c) or (d) less the aggregate amount applied to make the payments required pursuant to Section 2.5(e)(i) and Section 2.5(e)(ii), to the extent necessary to pay the Class C Controlled Distribution Amount during the Series 2019-3 Controlled Amortization Period or to the extent necessary to pay the Class C Invested Amount during the Series 2019-3 Rapid Amortization Period.
(iv)    Class R Notes.  On each Distribution Date occurring on or after the date a withdrawal is made from the Series 2019-3 Collection Account pursuant to Section 2.5(a) the Paying Agent shall, in accordance with Section 6.1 of the Base Indenture, pay pro rata to each Class R Noteholder from the Series 2019-3 Distribution Account the amount deposited therein pursuant to Section 2.5(a) less the aggregate amount applied to make the payments required pursuant to Section 2.5(e)(i), Section 2.5(e)(ii) and Section 2.5(e)(iii), to the extent necessary to pay the Class R Controlled Amortization Amount during the Series 2019-3 Controlled Amortization Period or to the extent necessary to pay the Class R Invested Amount during the Series 2019-3 Rapid Amortization Period.
Section 2.6.    Administrator’s Failure to Instruct the Trustee to Make a Deposit or Payment.  
(a)    If the Administrator fails to give notice or instructions to make any payment from or deposit into the Collection Account required to be given by the Administrator, at the time specified in the Administration Agreement or any other Related Document (including applicable grace periods), the Trustee shall make such payment or deposit into or from the Collection Account without such notice or instruction from the Administrator; provided, however, that the Administrator, upon request of the Trustee, promptly provides the Trustee with all information necessary to allow the Trustee to make such a payment or deposit.  When any payment or deposit hereunder or under any other Related Document is required to be made by the Trustee or the Paying Agent at or prior to a specified time, the Administrator shall deliver any applicable written instructions with respect thereto reasonably in advance of such specified time.
Section 2.7.    Series 2019-3 Reserve Account. 
(a)    Establishment of Series 2019-3 Reserve Account.  ABRCF shall establish and maintain in the name of the Series 2019-3 Agent for the benefit of the Class A Noteholders, the Class B Noteholders and the Class C Noteholders, or cause to be established and maintained, an 

	
			
	 
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account (the “Series 2019-3 Reserve Account”), bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Class A Noteholders, the Class B Noteholders and the Class C Noteholders.  The Series 2019-3 Reserve Account shall be maintained (i) with a Qualified Institution, or (ii) as a segregated trust account with the corporate trust department of a depository institution or trust company having corporate trust powers and acting as trustee for funds deposited in the Series 2019-3 Reserve Account; provided, however, that, if at any time such Qualified Institution is no longer a Qualified Institution or the credit rating of any securities issued by such depositary institution or trust company shall be reduced to below “BBB (low)” by DBRS, “Baa3” by Moody’s or “BBB-” by Fitch, then ABRCF shall, within thirty (30) days of such reduction, establish a new Series 2019-3 Reserve Account with a new Qualified Institution.  If the Series 2019-3 Reserve Account is not maintained in accordance with the previous sentence, ABRCF shall establish a new Series 2019-3 Reserve Account, within ten (10) Business Days after obtaining knowledge of such fact, which complies with such sentence, and shall instruct the Series 2019-3 Agent in writing to transfer all cash and investments from the non‐qualifying Series 2019-3 Reserve Account into the new Series 2019-3 Reserve Account.  Initially, the Series 2019-3 Reserve Account will be established with The Bank of New York Mellon Trust Company, N.A.  
(b)    Administration of the Series 2019-3 Reserve Account.  The Administrator may instruct the institution maintaining the Series 2019-3 Reserve Account to invest funds on deposit in the Series 2019-3 Reserve Account from time to time in Permitted Investments; provided, however, that any such investment shall mature not later than the Business Day prior to the Distribution Date following the date on which such funds were received, unless any Permitted Investment held in the Series 2019-3 Reserve Account is held with the Paying Agent, then such investment may mature on such Distribution Date and such funds shall be available for withdrawal on or prior to such Distribution Date; provided further, that in the case of Permitted Investments held in the Series 2019-3 Reserve Account and so long as any Series 2019-3 Note is rated by Fitch (x) any Permitted Investment set forth in clauses (ii), (iii), (vi) and (vii) of the definition thereof will have a rating of “AA-” or “F1+” by Fitch and (y) any Permitted Investment set forth in clause (v) of the definition thereof will either have a rating of “AAAmmf” by Fitch or, if such fund is not rated by Fitch, the then highest rating from two nationally recognized investment rating agencies (other than Fitch).  All such Permitted Investments will be credited to the Series 2019-3 Reserve Account and any such Permitted Investments that constitute (i) physical property (and that is not either a United States security entitlement or a security entitlement) shall be physically delivered to the Trustee; (ii) United States security entitlements or security entitlements shall be controlled (as defined in Section 8‐106 of the New York UCC) by the Trustee pending maturity or disposition, and (iii) uncertificated securities (and not United States security entitlements) shall be delivered to the Trustee by causing the Trustee to become the registered holder of such securities.  The Trustee shall, at the expense of ABRCF, take such action as is required to maintain the Trustee’s security interest in the Permitted Investments credited to the Series 2019-3 Reserve Account.  ABRCF shall not direct the Trustee to dispose of (or permit the disposal of) any Permitted Investment prior to the maturity thereof to the extent such disposal would result in a loss of the purchase price of such Permitted Investment.  In the absence of written investment instructions hereunder, funds on deposit in the Series 2019-3 Reserve Account shall remain uninvested.

	
			
	 
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(c)    Earnings from Series 2019-3 Reserve Account.  All interest and earnings (net of losses and investment expenses) paid on funds on deposit in the Series 2019-3 Reserve Account shall be deemed to be on deposit therein and available for distribution.
(d)    Series 2019-3 Reserve Account Constitutes Additional Collateral for Series 2019-3 Senior Notes.  In order to secure and provide for the repayment and payment of the ABRCF Obligations with respect to the Series 2019-3 Senior Notes, ABRCF hereby grants a security interest in and assigns, pledges, grants, transfers and sets over to the Trustee, for the benefit of the Class A Noteholders, the Class B Noteholders and the Class C Noteholders, all of ABRCF’s right, title and interest in and to the following (whether now or hereafter existing or acquired):  (i) the Series 2019-3 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 2019-3 Reserve Account or the funds on deposit therein from time to time; (iv) all investments made at any time and from time to time with monies in the Series 2019-3 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 2019-3 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 2019-3 Reserve Account Collateral”).  The Trustee shall possess all right, title and interest in and to all funds on deposit from time to time in the Series 2019-3 Reserve Account and in all proceeds thereof, and shall be the only person authorized to originate entitlement orders in respect of the Series 2019-3 Reserve Account.  The Series 2019-3 Reserve Account Collateral shall be under the sole dominion and control of the Trustee for the benefit of the Class A Noteholders, the Class B Noteholders and the Class C Noteholders.  The Series 2019-3 Agent hereby agrees (i) to act as the securities intermediary (as defined in Section 8‐102(a)(14) of the New York UCC) with respect to the Series 2019-3 Reserve Account; (ii) that its jurisdiction as securities intermediary is New York; (iii) that each item of property (whether investment property, financial asset, security, instrument or cash) credited to the Series 2019-3 Reserve Account shall be treated as a financial asset (as defined in Section 8‐102(a)(9) of the New York UCC) and (iv) to comply with any entitlement order (as defined in Section 8‐102(a)(8) of the New York UCC) issued by the Trustee.
(e)    Series 2019-3 Reserve Account Surplus.  In the event that the Series 2019-3 Reserve Account Surplus on any Distribution Date, after giving effect to all withdrawals from the Series 2019-3 Reserve Account, is greater than zero, if no Series 2019-3 Enhancement Deficiency or AESOP I Operating Lease Vehicle Deficiency would result therefrom or exist thereafter, the Trustee, acting in accordance with the written instructions of the Administrator pursuant to the Administration Agreement, shall withdraw from the Series 2019-3 Reserve Account an amount equal to the Series 2019-3 Reserve Account Surplus and shall pay such amount to ABRCF.
(f)    Termination of Series 2019-3 Reserve Account.  Upon the termination of the Indenture pursuant to Section 11.1 of the Base Indenture, the Trustee, acting in accordance with the written instructions of the Administrator, after the prior payment of all amounts owing to the Series 2019-3 Noteholders and payable from the Series 2019-3 Reserve Account as provided herein, shall 

	
			
	 
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withdraw from the Series 2019-3 Reserve Account all amounts on deposit therein for payment to ABRCF.
Section 2.8.    Series 2019-3 Letters of Credit and Series 2019-3 Cash Collateral Account. 
(a)    Series 2019-3 Letters of Credit and Series 2019-3 Cash Collateral Account Constitute Additional Collateral for Series 2019-3 Senior Notes.  In order to secure and provide for the repayment and payment of the ABRCF Obligations with respect to the Series 2019-3 Senior Notes, ABRCF hereby grants a security interest in and assigns, pledges, grants, transfers and sets over to the Trustee, for the benefit of the holders of the Class A Noteholders, the Class B Noteholders and the Class C Noteholders, all of ABRCF’s right, title and interest in and to the following (whether now or hereafter existing or acquired):  (i) each Series 2019-3 Letter of Credit; (ii) the Series 2019-3 Cash Collateral Account, including any security entitlement thereto; (iii) all funds on deposit in the Series 2019-3 Cash Collateral Account from time to time; (iv) all certificates and instruments, if any, representing or evidencing any or all of the Series 2019-3 Cash Collateral Account or the funds on deposit therein from time to time; (v) all investments made at any time and from time to time with monies in the Series 2019-3 Cash Collateral Account, whether constituting securities, instruments, general intangibles, investment property, financial assets or other property; (vi) all interest, dividends, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for the Series 2019-3 Cash Collateral Account, the funds on deposit therein from time to time or the investments made with such funds; and (vii) all proceeds of any and all of the foregoing, including, without limitation, cash (the items in the foregoing clauses (ii) through (vii) are referred to, collectively, as the “Series 2019-3 Cash Collateral Account Collateral”).  The Trustee shall, for the benefit of the Class A Noteholders, the Class B Noteholders and the Class C Noteholders, possess all right, title and interest in all funds on deposit from time to time in the Series 2019-3 Cash Collateral Account and in all proceeds thereof, and shall be the only person authorized to originate entitlement orders in respect of the Series 2019-3 Cash Collateral Account.  The Series 2019-3 Cash Collateral Account shall be under the sole dominion and control of the Trustee for the benefit of the Class A Noteholders, the Class B Noteholders and the Class C Noteholders. The Series 2019-3 Agent hereby agrees (i) to act as the securities intermediary (as defined in Section 8‐102(a)(14) of the New York UCC) with respect to the Series 2019-3 Cash Collateral Account; (ii) that its jurisdiction as a securities intermediary is New York, (iii) that each item of property (whether investment property, financial asset, security, instrument or cash) credited to the Series 2019-3 Cash Collateral Account shall be treated as a financial asset (as defined in Section 8‐102(a)(9) of the New York UCC) and (iv) to comply with any entitlement order (as defined in Section 8‐102(a)(8) of the New York UCC) issued by the Trustee.
(b)    Series 2019-3 Letter of Credit Expiration Date.  If prior to the date which is ten (10) days prior to the then‐scheduled Series 2019-3 Letter of Credit Expiration Date with respect to any Series 2019-3 Letter of Credit, excluding the amount available to be drawn under such Series 2019-3 Letter of Credit but taking into account each substitute Series 2019-3 Letter of Credit which has been obtained from a Series 2019-3 Eligible Letter of Credit Provider and is in full force and effect on such date, the Series 2019-3 Enhancement Amount would be equal to or more than the 

	
			
	 
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Series 2019-3 Required Enhancement Amount and the Series 2019-3 Liquidity Amount would be equal to or greater than the Series 2019-3 Required Liquidity Amount, then the Administrator shall notify the Trustee in writing no later than two (2) Business Days prior to such Series 2019-3 Letter of Credit Expiration Date of such determination.  If prior to the date which is ten (10) days prior to the then‐scheduled Series 2019-3 Letter of Credit Expiration Date with respect to any Series 2019-3 Letter of Credit, excluding the amount available to be drawn under such Series 2019-3 Letter of Credit but taking into account a substitute Series 2019-3 Letter of Credit which has been obtained from a Series 2019-3 Eligible Letter of Credit Provider and is in full force and effect on such date, the Series 2019-3 Enhancement Amount would be less than the Series 2019-3 Required Enhancement Amount or the Series 2019-3 Liquidity Amount would be less than the Series 2019-3 Required Liquidity Amount, then the Administrator shall notify the Trustee in writing no later than two (2) Business Days prior to such Series 2019-3 Letter of Credit Expiration Date of (x) the greater of (A) the excess, if any, of the Series 2019-3 Required Enhancement Amount over the Series 2019-3 Enhancement Amount, excluding the available amount under such expiring Series 2019-3 Letter of Credit but taking into account any substitute Series 2019-3 Letter of Credit which has been obtained from a Series 2019-3 Eligible Letter of Credit Provider and is in full force and effect, on such date, and (B) the excess, if any, of the Series 2019-3 Required Liquidity Amount over the Series 2019-3 Liquidity Amount, excluding the available amount under such expiring Series 2019-3 Letter of Credit but taking into account any substitute Series 2019-3 Letter of Credit which has been obtained from a Series 2019-3 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 2019-3 Letter of Credit on such date.  Upon receipt of such notice by the Trustee on or prior to 10:00 a.m. (New York City time) on any Business Day, the Trustee shall, by 12:00 noon (New York City time) on such Business Day (or, in the case of any notice given to the Trustee after 10:00 a.m. (New York City time), by 12:00 noon (New York City time) on the next following Business Day), draw the lesser of the amounts set forth in clauses (x) and (y) above on such expiring Series 2019-3 Letter of Credit by presenting a draft accompanied by a Certificate of Termination Demand and shall cause the Termination Disbursement to be deposited in the Series 2019-3 Cash Collateral Account.
If the Trustee does not receive the notice from the Administrator described in the first paragraph of this Section 2.8(b) on or prior to the date that is two (2) Business Days prior to each Series 2019-3 Letter of Credit Expiration Date, the Trustee shall, by 12:00 noon (New York City time) on such Business Day draw the full amount of such Series 2019-3 Letter of Credit by presenting a draft accompanied by a Certificate of Termination Demand and shall cause the Termination Disbursement to be deposited in the Series 2019-3 Cash Collateral Account.
(c)    Series 2019-3 Letter of Credit Providers.  The Administrator shall notify the Trustee in writing within one (1) Business Day of becoming aware that (i) the long‐term senior unsecured debt credit rating of any Series 2019-3 Letter of Credit Provider has fallen below “A (high)” as determined by DBRS or “A1” as determined by Moody’s or “A+” as determined by Fitch or (ii) the short‐term senior unsecured debt credit rating of any Series 2019-3 Letter of Credit Provider has fallen below “R-1” as determined by DBRS or “P‐1” as determined by Moody’s or “F1” as determined by Fitch.  At such time the Administrator shall also notify the Trustee of (i) the greater of (A) the excess, if any, of the Series 2019-3 Required Enhancement Amount over the Series 2019-3 Enhancement Amount, excluding the available amount under the Series 2019-3 Letter 

	
			
	 
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of Credit issued by such Series 2019-3 Letter of Credit Provider, on such date, and (B) the excess, if any, of the Series 2019-3 Required Liquidity Amount over the Series 2019-3 Liquidity Amount, excluding the available amount under such Series 2019-3 Letter of Credit, on such date, and (ii) the amount available to be drawn on such Series 2019-3 Letter of Credit on such date.  Upon receipt of such notice by the Trustee on or prior to 10:00 a.m. (New York City time) on any Business Day, the Trustee shall, by 12:00 noon (New York City time) on such Business Day (or, in the case of any notice given to the Trustee after 10:00 a.m. (New York City time), by 12:00 noon (New York City time) on the next following Business Day), draw on such Series 2019-3 Letter of Credit in an amount equal to the lesser of the amounts in clause (i) and clause (ii) of the immediately preceding sentence on such Business Day by presenting a draft accompanied by a Certificate of Termination Demand and shall cause the Termination Disbursement to be deposited in the Series 2019-3 Cash Collateral Account.
(d)    Termination Date Demands on the Series 2019-3 Letters of Credit.  Prior to 10:00 a.m. (New York City time) on the Business Day immediately succeeding the Series 2019-3 Letter of Credit Termination Date, the Administrator shall determine the Series 2019-3 Demand Note Payment Amount, if any, as of the Series 2019-3 Letter of Credit Termination Date and, if the Series 2019-3 Demand Note Payment Amount is greater than zero, instruct the Trustee in writing to draw on the Series 2019-3 Letters of Credit.  Upon receipt of any such notice by the Trustee on or prior to 11:00 a.m. (New York City time) on a Business Day, the Trustee shall, by 12:00 noon (New York City time) on such Business Day draw an amount equal to the lesser of (i) the Series 2019-3 Demand Note Payment Amount and (ii) the Series 2019-3 Letter of Credit Liquidity Amount on the Series 2019-3 Letters of Credit by presenting to each Series 2019-3 Letter of Credit Provider a draft accompanied by a Certificate of Termination Date Demand and shall cause the Termination Date Disbursement to be deposited in the Series 2019-3 Cash Collateral Account; provided, however, that if the Series 2019-3 Cash Collateral Account has been established and funded, the Trustee shall draw an amount equal to the product of (a) 100% minus the Series 2019-3 Cash Collateral Percentage and (b) the lesser of the amounts referred to in clause (i) and (ii) on such Business Day on the Series 2019-3 Letters of Credit as calculated by the Administrator and provided in writing to the Trustee.
(e)    Draws on the Series 2019-3 Letters of Credit.  If there is more than one Series 2019-3 Letter of Credit on the date of any draw on the Series 2019-3 Letters of Credit pursuant to the terms of this Supplement, the Administrator shall instruct the Trustee, in writing, to draw on each Series 2019-3 Letter of Credit in an amount equal to the Pro Rata Share of the Series 2019-3 Letter of Credit Provider issuing such Series 2019-3 Letter of Credit of the amount of such draw on the Series 2019-3 Letters of Credit.
(f)    Establishment of Series 2019-3 Cash Collateral Account.  On or prior to the date of any drawing under a Series 2019-3 Letter of Credit pursuant to Section 2.8(b), (c) or (d) above, ABRCF shall establish and maintain in the name of the Trustee for the benefit of the Class A Noteholders, the Class B Noteholders and the Class C Noteholders, or cause to be established and maintained, an account (the “Series 2019-3 Cash Collateral Account”), bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Class A Noteholders, the Class B Noteholders and the Class C Noteholders.  The Series 2019-3 Cash Collateral Account shall be maintained (i) with a Qualified Institution, or (ii) as a segregated trust account with the 

	
			
	 
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corporate trust department of a depository institution or trust company having corporate trust powers and acting as trustee for funds deposited in the Series 2019-3 Cash Collateral Account; provided, however, that if at any time such Qualified Institution is no longer a Qualified Institution or the credit rating of any securities issued by such depository institution or trust company shall be reduced to below “BBB (low)” by DBRS, “Baa3” by Moody’s or “BBB-” by Fitch, then ABRCF shall, within thirty (30) days of such reduction, establish a new Series 2019-3 Cash Collateral Account with a new Qualified Institution or a new segregated trust account with the corporate trust department of a depository institution or trust company having corporate trust powers and acting as trustee for funds deposited in the Series 2019-3 Cash Collateral Account.  If a new Series 2019-3 Cash Collateral Account is established, ABRCF shall instruct the Trustee in writing to transfer all cash and investments from the non‐qualifying Series 2019-3 Cash Collateral Account into the new Series 2019-3 Cash Collateral Account.
(g)    Administration of the Series 2019-3 Cash Collateral Account.  ABRCF may instruct (by standing instructions or otherwise) the institution maintaining the Series 2019-3 Cash Collateral Account to invest funds on deposit in the Series 2019-3 Cash Collateral Account from time to time in Permitted Investments; provided, however, that any such investment shall mature not later than the Business Day prior to the Distribution Date following the date on which such funds were received, unless any Permitted Investment held in the Series 2019-3 Cash Collateral Account is held with the Paying Agent, in which case such investment may mature on such Distribution Date so long as such funds shall be available for withdrawal on or prior to such Distribution Date; provided further, that in the case of Permitted Investments held in the Series 2019-3 Cash Collateral Account and so long as any Series 2019-3 Note is rated by Fitch (x) any Permitted Investment set forth in clauses (ii), (iii), (vi) and (vii) of the definition thereof will have a rating of “AA-” or “F1+” by Fitch and (y) any Permitted Investment set forth in clause (v) of the definition thereof will either have a rating of “AAAmmf” by Fitch or, if such fund is not rated by Fitch, the then highest rating from two nationally recognized investment rating agencies (other than Fitch).  All such Permitted Investments will be credited to the Series 2019-3 Cash Collateral Account and any such Permitted Investments that constitute (i) physical property (and that is not either a United States security entitlement or a security entitlement) shall be physically delivered to the Trustee; (ii) United States security entitlements or security entitlements shall be controlled (as defined in Section 8‐106 of the New York UCC) by the Trustee pending maturity or disposition, and (iii) uncertificated securities (and not United States security entitlements) shall be delivered to the Trustee by causing the Trustee to become the registered holder of such securities.  The Trustee shall, at the expense of ABRCF, take such action as is required to maintain the Trustee’s security interest in the Permitted Investments credited to the Series 2019-3 Cash Collateral Account.  ABRCF shall not direct the Trustee to dispose of (or permit the disposal of) any Permitted Investment prior to the maturity thereof to the extent such disposal would result in a loss of the purchase price of such Permitted Investment.  In the absence of written investment instructions hereunder, funds on deposit in the Series 2019-3 Cash Collateral Account shall remain uninvested.
(h)    Earnings from Series 2019-3 Cash Collateral Account.  All interest and earnings (net of losses and investment expenses) paid on funds on deposit in the Series 2019-3 Cash Collateral Account shall be deemed to be on deposit therein and available for distribution.

	
			
	 
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(i)    Series 2019-3 Cash Collateral Account Surplus.  In the event that the Series 2019-3 Cash Collateral Account Surplus on any Distribution Date (or, after the Series 2019-3 Letter of Credit Termination Date, on any date) is greater than zero, the Trustee, acting in accordance with the written instructions of the Administrator, shall withdraw from the Series 2019-3 Cash Collateral Account an amount equal to the Series 2019-3 Cash Collateral Account Surplus and shall pay such amount:  first, to the Series 2019-3 Letter of Credit Providers to the extent of any unreimbursed drawings under the related Series 2019-3 Reimbursement Agreement, for application in accordance with the provisions of the related Series 2019-3 Reimbursement Agreement, and, second, to ABRCF any remaining amount.
(j)    Termination of Series 2019-3 Cash Collateral Account.  Upon the termination of this Supplement in accordance with its terms, the Trustee, acting in accordance with the written instructions of the Administrator, after the prior payment of all amounts owing to the Series 2019-3 Noteholders and payable from the Series 2019-3 Cash Collateral Account as provided herein, shall withdraw from the Series 2019-3 Cash Collateral Account all amounts on deposit therein (to the extent not withdrawn pursuant to Section 2.8(i) above) and shall pay such amounts:  first, to the Series 2019-3 Letter of Credit Providers to the extent of any unreimbursed drawings under the related Series 2019-3 Reimbursement Agreement, for application in accordance with the provisions of the related Series 2019-3 Reimbursement Agreement, and, second, to ABRCF any remaining amount.
Section 2.9.    Series 2019-3 Distribution Account.  
(a)    Establishment of Series 2019-3 Distribution Account.  ABRCF shall establish and maintain in the name of the Trustee for the benefit of the Series 2019-3 Noteholders, or cause to be established and maintained, an account (the “Series 2019-3 Distribution Account”), bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Series 2019-3 Noteholders.  The Series 2019-3 Distribution Account shall be maintained (i) with a Qualified Institution, or (ii) as a segregated trust account with the corporate trust department of a depository institution or trust company having corporate trust powers and acting as trustee for funds deposited in the Series 2019-3 Distribution Account; provided, however, that if at any time such Qualified Institution is no longer a Qualified Institution or the credit rating of any securities issued by such depositary institution or trust company shall be reduced to below “BBB (low)” by DBRS or “Baa3” by Moody’s, then ABRCF shall, within thirty (30) days of such reduction, establish a new Series 2019-3 Distribution Account with a new Qualified Institution.  If the Series 2019-3 Distribution Account is not maintained in accordance with the previous sentence, ABRCF shall establish a new Series 2019-3 Distribution Account, within ten (10) Business Days after obtaining knowledge of such fact, which complies with such sentence, and shall instruct the Series 2019-3 Agent in writing to transfer all cash and investments from the non‐qualifying Series 2019-3 Distribution Account into the new Series 2019-3 Distribution Account.  Initially, the Series 2019-3 Distribution Account will be established with The Bank of New York Mellon Trust Company, N.A.
(b)    Administration of the Series 2019-3 Distribution Account.  The Administrator may instruct the institution maintaining the Series 2019-3 Distribution Account to invest funds on deposit in the Series 2019-3 Distribution Account from time to time in Permitted 

	
			
	 
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Investments; provided, however, that any such investment shall mature not later than the Business Day prior to the Distribution Date following the date on which such funds were received, unless any Permitted Investment held in the Series 2019-3 Distribution Account is held with the Paying Agent, then such investment may mature on such Distribution Date and such funds shall be available for withdrawal on or prior to such Distribution Date.  All such Permitted Investments will be credited to the Series 2019-3 Distribution Account and any such Permitted Investments that constitute (i) physical property (and that is not either a United States security entitlement or a security entitlement) shall be physically delivered to the Trustee; (ii) United States security entitlements or security entitlements shall be controlled (as defined in Section 8‐106 of the New York UCC) by the Trustee pending maturity or disposition, and (iii) uncertificated securities (and not United States security entitlements) shall be delivered to the Trustee by causing the Trustee to become the registered holder of such securities.  The Trustee shall, at the expense of ABRCF, take such action as is required to maintain the Trustee’s security interest in the Permitted Investments credited to the Series 2019-3 Distribution Account.  ABRCF shall not direct the Trustee to dispose of (or permit the disposal of) any Permitted Investment prior to the maturity thereof to the extent such disposal would result in a loss of the purchase price of such Permitted Investment.  In the absence of written investment instructions hereunder, funds on deposit in the Series 2019-3 Distribution Account shall remain uninvested.
(c)    Earnings from Series 2019-3 Distribution Account.  All interest and earnings (net of losses and investment expenses) paid on funds on deposit in the Series 2019-3 Distribution Account shall be deemed to be on deposit and available for distribution.
(d)    Series 2019-3 Distribution Account Constitutes Additional Collateral for Series 2019-3 Notes.  In order to secure and provide for the repayment and payment of the ABRCF Obligations with respect to the Series 2019-3 Notes, ABRCF hereby grants a security interest in and assigns, pledges, grants, transfers and sets over to the Trustee, for the benefit of the Series 2019-3 Noteholders, all of ABRCF’s right, title and interest in and to the following (whether now or hereafter existing or acquired):  (i) the Series 2019-3 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 2019-3 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 2019-3 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 2019-3 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 2019-3 Distribution Account Collateral”).  The Trustee shall possess all right, title and interest in all funds on deposit from time to time in the Series 2019-3 Distribution Account and in and to all proceeds thereof, and shall be the only person authorized to originate entitlement orders in respect of the Series 2019-3 Distribution Account.  The Series 2019-3 Distribution Account Collateral shall be under the sole dominion and control of the Trustee for the benefit of the Series 2019-3 Noteholders.  The Series 2019-3 Agent hereby agrees (i) to act as the securities intermediary (as defined in Section 8‐102(a)

	
			
	 
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(14) of the New York UCC) with respect to the Series 2019-3 Distribution Account; (ii) that its jurisdiction as securities intermediary is New York, (iii) that each item of property (whether investment property, financial asset, security, instrument or cash) credited to the Series 2019-3 Distribution Account shall be treated as a financial asset (as defined in Section 8‐102(a)(9) of the New York UCC) and (iv) to comply with any entitlement order (as defined in Section 8‐102(a)(8) of the New York UCC) issued by the Trustee.
Section 2.10.    Series 2019-3 Accounts Permitted Investments.  ABRCF shall not, and shall not permit, funds on deposit in the Series 2019-3 Accounts to be invested in: 
(i)    Permitted Investments that do not mature at least one (1) Business Day before the next Distribution Date; 
(ii)    demand deposits, time deposits or certificates of deposit with a maturity in excess of 360 days; 
(iii)    commercial paper which is not rated “P‐1” by Moody’s; 
(iv)    money market funds or eurodollar time deposits which are not rated at least “P-1” by Moody’s; 
(v)    eurodollar deposits that are not rated “P‐1” by Moody’s or that are with financial institutions not organized under the laws of a G‐7 nation; or 
(vi)    any investment, instrument or security not otherwise listed in clause (i) through (vi) of the definition of “Permitted Investments” in the Base Indenture.
Section 2.11.    Series 2019-3 Demand Notes Constitute Additional Collateral for Series 2019-3 Senior Notes.  In order to secure and provide for the repayment and payment of the ABRCF Obligations with respect to the Series 2019-3 Senior Notes, ABRCF hereby grants a security interest in and assigns, pledges, grants, transfers and sets over to the Trustee, for the benefit of the Class A Noteholders, the Class B Noteholders and the Class C Noteholders, all of ABRCF’s right, title and interest in and to the following (whether now or hereafter existing or acquired):  (i) the Series 2019-3 Demand Notes; (ii) all certificates and instruments, if any, representing or evidencing the Series 2019-3 Demand Notes; and (iii) all proceeds of any and all of the foregoing, including, without limitation, cash.  On the date hereof, ABRCF shall deliver to the Trustee, for the benefit of the Class A Noteholders, the Class B Noteholders and the Class C Noteholders, each Series 2019-3 Demand Note, endorsed in blank.  The Trustee, for the benefit of the Class A Noteholders, the Class B Noteholders and the Class C Noteholders, shall be the only Person authorized to make a demand for payments on the Series 2019-3 Demand Notes.
Section 2.12.    Subordination of the Class B Notes, Class C Notes, Class D Notes and the Class R Notes.  
(a)    Notwithstanding anything to the contrary contained in this Supplement, the Base Indenture or in any other Related Document, the Class B Notes will be subordinate in all 

	
			
	 
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respects to the Class A Notes as and to the extent set forth in this Section 2.12(a).  No payments on account of principal shall be made with respect to the Class B Notes on any Distribution Date during the Series 2019-3 Controlled Amortization Period unless an amount equal to the Class A Controlled Distribution Amount for the Related Month shall have been paid to the Class A Noteholders and no payments on account of principal shall be made with respect to the Class B Notes during the Series 2019-3 Rapid Amortization Period or on the Series 2019-3 Final Distribution Date until the Class A Notes have been paid in full.  No payments on account of interest shall be made with respect to the Class B Notes on any Distribution Date until all payments of interest then due and payable with respect to the Class A Notes (including, without limitation, all accrued interest, all Class A Shortfall and all interest accrued on such Class A Shortfall) have been paid in full.
(b)    Notwithstanding anything to the contrary contained in this Supplement, the Base Indenture or in any other Related Document, the Class C Notes will be subordinate in all respects to the Class A Notes and the Class B Notes as and to the extent set forth in this Section 2.12(b).  No payments on account of principal shall be made with respect to the Class C Notes on any Distribution Date during the Series 2019-3 Controlled Amortization Period unless an amount equal to the Class A Controlled Distribution Amount for the Related Month shall have been paid to the Class A Noteholders and an amount equal to the Class B Controlled Distribution Amount for the Related Month shall have been paid to the Class B Noteholders. No payments on account of principal shall be made with respect to the Class C Notes during the Series 2019-3 Rapid Amortization Period or on the Series 2019-3 Final Distribution Date until the Class A Notes and the Class B Notes have been paid in full.  No payments on account of interest shall be made with respect to the Class C Notes on any Distribution Date until all payments of interest then due and payable with respect to the Class A Notes and Class B Notes (including, without limitation, all accrued interest, all Class A Shortfall, all interest accrued on such Class A Shortfall, all Class B Shortfall and all interest accrued on such Class B Shortfall) have been paid in full.
(c)    Notwithstanding anything to the contrary contained in this Supplement, the Base Indenture or in any other Related Document, the Class D Notes, if issued, will be subordinate in all respects to the Class A Notes, the Class B Notes and the Class C Notes as and to the extent set forth in this Section 2.12(c).  No payments on account of principal shall be made with respect to the Class D Notes on any Distribution Date during the Series 2019-3 Controlled Amortization Period unless an amount equal to the Class A Controlled Distribution Amount for the Related Month shall have been paid to the Class A Noteholders, an amount equal to the Class B Controlled Distribution Amount for the Related Month shall have been paid to the Class B Noteholders and an amount equal to the Class C Controlled Distribution Amount for the Related Month shall have been paid to the Class C Noteholders. No payments on account of principal shall be made with respect to the Class D Notes during the Series 2019-3 Rapid Amortization Period or on the Series 2019-3 Final Distribution Date until the Class A Notes, the Class B Notes and the Class C Notes have been paid in full. No payments on account of interest shall be made with respect to the Class D Notes on any Distribution Date until all payments of interest then due and payable with respect to the Class A Notes, Class B Notes and Class C Notes (including, without limitation, all accrued interest, all Class A Shortfall, all interest accrued on such Class A Shortfall, all Class B Shortfall, all interest accrued on such Class B Shortfall, all Class C Shortfall and all interest accrued on such Class C Shortfall) have been paid in full.

	
			
	 
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(d)    Notwithstanding anything to the contrary contained in this Supplement, the Base Indenture or in any other Related Document, the Class R Notes will be subordinate in all respects to the Class A Notes, the Class B Notes, the Class C Notes and the Class D Notes (if issued), as and to the extent set forth in this Section 2.12(d). No payments on account of principal shall be made with respect to the Class R Notes during the Series 2019-3 Controlled Amortization Period or the Series 2019-3 Rapid Amortization Period or on the Series 2019-3 Final Distribution Date until the Class A Notes, the Class B Notes, the Class C Notes and, if issued, the Class D Notes have been paid in full. No payments on account of interest shall be made with respect to the Class R Notes on any Distribution Date until all payments of interest and principal due and payable on such Distribution Date with respect to the Class A Notes, the Class B Notes, the Class C Notes and, if issued, Class D Notes (including, without limitation, all accrued interest, all Class A Shortfall, all interest accrued on such Class A Shortfall, all Class B Shortfall, all interest accrued on such Class B Shortfall, all Class C Shortfall, all interest accrued on such Class C Shortfall, all due and unpaid interest on the Class D Notes (if issued) and all interest accrued on such unpaid amounts) have been paid in full.
ARTICLE III 
 
AMORTIZATION EVENTS
In addition to the Amortization Events set forth in Section 9.1 of the Base Indenture, any of the following shall be an Amortization Event with respect to the Series 2019-3 Notes and collectively shall constitute the Amortization Events set forth in Section 9.1(n) of the Base Indenture with respect to the Series 2019-3 Notes (without notice or other action on the part of the Trustee or any holders of the Series 2019-3 Notes):
(a)    a Series 2019-3 Enhancement Deficiency shall occur and continue for at least two (2) Business Days; provided, however, that such event or condition shall not be an Amortization Event if during such two (2) Business Day period such Series 2019-3 Enhancement Deficiency shall have been cured in accordance with the terms and conditions of the Indenture and the Related Documents;
(b)    the Series 2019-3 Liquidity Amount shall be less than the Series 2019-3 Required Liquidity Amount for at least two (2) Business Days; provided, however, that such event or condition shall not be an Amortization Event if during such two (2) Business Day period such insufficiency shall have been cured in accordance with the terms and conditions of the Indenture and the Related Documents;
(c)    the Collection Account, the Series 2019-3 Collection Account, the Series 2019-3 Excess Collection Account or the Series 2019-3 Reserve Account shall be subject to an injunction, estoppel or other stay or a Lien (other than Liens permitted under the Related Documents);
(d)    all principal of and interest on any Class of the Series 2019-3 Notes is not paid in full on or before the Series 2019-3 Expected Final Distribution Date;

	
			
	 
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(e)    any Series 2019-3 Letter of Credit shall not be in full force and effect for at least two (2) Business Days and (x) either a Series 2019-3 Enhancement Deficiency would result from excluding such Series 2019-3 Letter of Credit from the Series 2019-3 Enhancement Amount or (y) the Series 2019-3 Liquidity Amount, excluding therefrom the available amount under such Series 2019-3 Letter of Credit, would be less than the Series 2019-3 Required Liquidity Amount;
(f)    from and after the funding of the Series 2019-3 Cash Collateral Account, the Series 2019-3 Cash Collateral Account shall be subject to an injunction, estoppel or other stay or a Lien (other than Liens permitted under the Related Documents) for at least two (2) Business Days and either (x) a Series 2019-3 Enhancement Deficiency would result from excluding the Series 2019-3 Available Cash Collateral Account Amount from the Series 2019-3 Enhancement Amount or (y) the Series 2019-3 Liquidity Amount, excluding therefrom the Series 2019-3 Available Cash Collateral Account Amount, would be less than the Series 2019-3 Required Liquidity Amount; and
(g)    an Event of Bankruptcy shall have occurred with respect to any Series 2019-3 Letter of Credit Provider or any Series 2019-3 Letter of Credit Provider repudiates its Series 2019-3 Letter of Credit or refuses to honor a proper draw thereon and either (x) a Series 2019-3 Enhancement Deficiency would result from excluding such Series 2019-3 Letter of Credit from the Series 2019-3 Enhancement Amount or (y) the Series 2019-3 Liquidity Amount, excluding therefrom the available amount under such Series 2019-3 Letter of Credit, would be less than the Series 2019-3 Required Liquidity Amount.
ARTICLE IV 
 
FORM OF SERIES 2019-3 NOTES
Section 4.1.    Restricted Global Series 2019-3 Notes.  Each Class of the Series 2019-3 Notes to be issued in the United States will be issued in book‐entry form and represented by one or more permanent global Notes in fully registered form without interest coupons (each, a “Restricted Global Class A Note”, a “Restricted Global Class B Note”, a “Restricted Global Class C Note” or a “Restricted Global Class R Note”, as the case may be), substantially in the form set forth in Exhibits A‐1, B-1, C‐1 and D-1, with such legends as may be applicable thereto as set forth in the Base Indenture, and will be sold only in the United States (1) initially to institutional accredited investors within the meaning of Regulation D under the Securities Act in reliance on an exemption from the registration requirements of the Securities Act and (2) thereafter to qualified institutional buyers within the meaning of, and in reliance on, Rule 144A under the Securities Act and shall be deposited on behalf of the purchasers of such Class of the Series 2019-3 Notes represented thereby, with the Trustee as custodian for DTC, and registered in the name of Cede as DTC’s nominee, duly executed by ABRCF and authenticated by the Trustee in the manner set forth in Section 2.4 of the Base Indenture.
Section 4.2.    Temporary Global Series 2019-3 Notes; Permanent Global Series 2019-3 Notes.  Each Class of the Series 2019-3 Notes to be issued outside the United States will be issued and sold in transactions outside the United States in reliance on Regulation S under the Securities Act, as provided in the applicable note purchase agreement, and shall initially be issued 

	
			
	 
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in the form of one or more temporary notes in registered form without interest coupons (each, a “Temporary Global Class A Note”, a “Temporary Global Class B Note”, a “Temporary Global Class C Note” or a “Temporary Global Class R Note”, as the case may be, and collectively the “Temporary Global Series 2019-3 Notes”), substantially in the form set forth in Exhibits A‐2, B-2 , C‐2 and D-2 which shall be deposited on behalf of the purchasers of such Class of the Series 2019-3 Notes represented thereby with a custodian for, and registered in the name of a nominee of DTC, for the account of Euroclear Bank S.A./N.V., as operator of the Euroclear System, or for Clearstream Banking, société anonyme, duly executed by ABRCF and authenticated by the Trustee in the manner set forth in Section 2.4 of the Base Indenture.  Interests in each Temporary Global Series 2019-3 Note will be exchangeable, in whole or in part, for interests in one or more permanent global notes in registered form without interest coupons (each, a “Permanent Global Class A Note”, a “Permanent Global Class B Note”, a “Permanent Global Class C Note” or a “Permanent Global Class R Note”, as the case may be, and collectively the “Permanent Global Series 2019-3 Notes”), substantially in the form of Exhibits A‐3, B-3 , C‐3 and D-3 in accordance with the provisions of such Temporary Global Series 2019-3 Note and the Base Indenture (as modified by this Supplement).  Interests in a Permanent Global Series 2019-3 Note will be exchangeable for a definitive Series 2019-3 Note in accordance with the provisions of such Permanent Global Series 2019-3 Note and the Base Indenture (as modified by this Supplement).
ARTICLE V 
 
GENERAL
Section 5.1.    Optional Repurchase.  
(a)     The Series 2019-3 Notes shall be subject to repurchase by ABRCF at its option in accordance with Section 6.3 of the Base Indenture on any Distribution Date (any such Distribution Date, a “Clean-up Repurchase Distribution Date”) after the Series 2019-3 Invested Amount is reduced to an amount less than or equal to 10% of the sum of the Class A Initial Invested Amount, the Class B Initial Invested Amount, the Class C Initial Invested Amount, the initial invested amount of the Class D Notes (if issued), the Class R Initial Invested Amount and the aggregate principal amount of any Additional Class R Notes (the “Series 2019-3 Repurchase Amount”). The repurchase price for any Series 2019-3 Note subject to a Clean-up Repurchase shall equal the aggregate outstanding principal balance of such Series 2019-3 Note (determined after giving effect to any payments of principal and interest on such Distribution Date), plus accrued and unpaid interest on such outstanding principal balance.
(b)    The Series 2019-3 Notes shall also be subject to repurchase at the election of the ABRCF in accordance with Section 6.3 of the Base Indenture, in whole but not in part, on any Distribution Date (any such Distribution Date, an “Optional Repurchase Distribution Date”) that occurs prior to the earlier to occur of (x) the commencement of the Series 2019-3 Rapid Amortization Period and (y) the Clean-up Repurchase Distribution Date (any such repurchase, an “Optional Repurchase”). The repurchase price for any Series 2019-3 Note subject to an Optional Repurchase shall equal (1) the aggregate outstanding principal balance of such Series 2019-3 Note (determined after giving effect to any payments made pursuant to Section 2.5(a) on such Distribution 

	
			
	 
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Date), plus (2) accrued and unpaid interest on such outstanding principal balance (determined after giving effect to any payments made pursuant to Section 2.4 on such Distribution Date) plus (3) the Make Whole Payment with respect to such Series 2019-3 Note.
Section 5.2.    Information.  The Trustee shall provide to the Series 2019-3 Noteholders, or their designated agent, copies of all information furnished to the Trustee or ABRCF pursuant to the Related Documents, as such information relates to the Series 2019-3 Notes or the Series 2019-3 Collateral.  
Section 5.3.    Exhibits.  The following exhibits attached hereto supplement the exhibits included in the Base Indenture.
	
		
	Exhibit A‐1:
	Form of Restricted Global Class A Note

	Exhibit A‐2:
	Form of Temporary Global Class A Note

	Exhibit A‐3:
	Form of Permanent Global Class A Note

	Exhibit B‐1:
	Form of Restricted Global Class B Note

	Exhibit B‐2:
	Form of Temporary Global Class B Note

	Exhibit B‐3:
	Form of Permanent Global Class B Note

	Exhibit C‐1:
	Form of Restricted Global Class C Note

	Exhibit C‐2:
	Form of Temporary Global Class C Note

	Exhibit C‐3:
	Form of Permanent Global Class C Note

	Exhibit D‐1:
	Form of Restricted Global Class R Note

	Exhibit D‐2:
	Form of Temporary Global Class R Note

	Exhibit D‐3:
	Form of Permanent Global Class R Note

	Exhibit E:
	Form of Series 2019-3 Demand Note

	Exhibit F:
	Form of Letter of Credit

	Exhibit G:
	Form of Lease Payment Deficit Notice

	Exhibit H:
	Form of Demand Notice

	Exhibit I:
	Form of Supplemental Indenture No. 4 to the Base Indenture

	Exhibit J:
	Form of Amendment to the AESOP I Operating Lease

	Exhibit K:
	Form of Amendment to the Finance Lease

	Exhibit L:
	Form of Amendment to the AESOP I Operating Lease Loan Agreement

	Exhibit M:
	Form of Amendment to the AESOP I Finance Lease Loan Agreement

Section 5.4.    Ratification of Base Indenture.  As supplemented by this Supplement, the Base Indenture is in all respects ratified and confirmed and the Base Indenture as so supplemented by this Supplement shall be read, taken, and construed as one and the same instrument.
Section 5.5.    Counterparts.  This Supplement may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all of such counterparts shall together constitute but one and the same instrument.
Section 5.6.    Governing Law.  This Supplement shall be construed in accordance with the law of the State of New York, and the obligations, rights and remedies of the parties hereto shall be determined in accordance with such law.

	
			
	 
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Section 5.7.    Amendments.  This Supplement may be modified or amended from time to time in accordance with the terms of the Base Indenture; provided, however, that if, pursuant to the terms of the Base Indenture or this Supplement, the consent of the Required Noteholders is required for an amendment or modification of this Supplement or any other Related Document, such requirement shall be satisfied if such amendment or modification is consented to by the Requisite Series 2019-3 Noteholders; provided, further, that, so long as (i) no Amortization Event has occurred and is continuing and (ii) the Rating Agency Consent Condition is met with respect to the outstanding Series 2019-3 Notes, ABRCF shall be able to (x) increase the Series 2019-3 Maximum Hyundai Amount up to an amount not to exceed 30% of the aggregate Net Book Value of all Vehicles leased under the Leases and/or (y) increase the Series 2019-3 Maximum Kia Amount up to an amount not to exceed 15% of the aggregate Net Book Value of all Vehicles leased under the Leases at any time without the consent of the Series 2019-3 Noteholders by giving written notice of such increase to the Trustee along with an Officer’s Certificate certifying that no Amortization Event has occurred and is continuing; provided, further, that, notwithstanding anything in this Section 5.7 or Article 8 or Article 12 of the Base Indenture to the contrary, this Supplement and any Related Documents relating solely to the Series 2019-3 Notes may be amended to provide for the issuance of any Class D Notes or Additional Class R Notes in accordance with Section 5.15 without the consent of any Class A Noteholder, any Class B Noteholder, any Class C Noteholder or any Class R Noteholder.
Section 5.8.    Discharge of Base Indenture.  Notwithstanding anything to the contrary contained in the Base Indenture, no discharge of the Indenture pursuant to Section 11.1(b) of the Base Indenture will be effective as to the Series 2019-3 Notes without the consent of the Requisite Series 2019-3 Noteholders.
Section 5.9.    Notice to Rating Agencies.  The Trustee shall provide to each Rating Agency a copy of each notice, opinion of counsel, certificate or other item delivered to, or required to be provided by, the Trustee pursuant to this Supplement or any other Related Document.    
Section 5.10.    Capitalization of ABRCF.  ABRCF agrees that on the Series 2019-3 Closing Date it will have capitalization in an amount equal to or greater than 3% of the sum of (x) the Series 2019-3 Invested Amount and (y) the invested amount of the Series 2010-6 Notes, the Series 2011-4 Notes, the Series 2014-2 Notes, the Series 2015-1 Notes, Series 2015-2 Notes, the Series 2015-3 Notes, the Series 2016-1 Notes, the Series 2016-2 Notes, the 2017-1 Notes, the 2017-2 Notes, the 2018-1 Notes, the Series 2018-2 Notes, the Series 2019-1 Notes and the Series 2019-2 Notes.
Section 5.11.    Required Noteholders.  Subject to Section 5.7 above, any action pursuant to Section 5.6, Section 8.13 or Article 9 of the Base Indenture that requires the consent of, or is permissible at the direction of, the Required Noteholders with respect to the Series 2019-3 Notes pursuant to the Base Indenture shall only be allowed with the consent of, or at the direction of, the Required Controlling Class Series 2019-3 Noteholders. Any other action pursuant to any Related Document which requires the consent or approval of, or the waiver by, the Required Noteholders with respect to the Series 2019-3 Notes shall require the consent or approval of, or waiver by, the Requisite Series 2019-3 Noteholders; provided, however, that, notwithstanding 

	
			
	 
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anything in this Section 5.11 or Article 8 or Article 12 of the Base Indenture to the contrary, any Related Document relating solely to the Series 2019-3 Notes may be amended to provide for the issuance of any Class D Notes or Additional Class R Notes in accordance with Section 5.15 without the consent of any Class A Noteholder, any Class B Noteholder, any Class C Noteholder or any Class R Noteholder. 
Section 5.12.    Series 2019-3 Demand Notes.  Other than pursuant to a demand thereon pursuant to Section 2.5, ABRCF shall not reduce the amount of the Series 2019-3 Demand Notes or forgive amounts payable thereunder so that the outstanding principal amount of the Series 2019-3 Demand Notes after such reduction or forgiveness is less than the Series 2019-3 Letter of Credit Liquidity Amount. ABRCF shall not agree to any amendment of the Series 2019-3 Demand Notes without first satisfying the Rating Agency Confirmation Condition and the Rating Agency Consent Condition.
Section 5.13.    Termination of Supplement.  This Supplement shall cease to be of further effect when all outstanding Series 2019-3 Notes theretofore authenticated and issued have been delivered (other than destroyed, lost, or stolen Series 2019-3 Notes which have been replaced or paid) to the Trustee for cancellation, ABRCF has paid all sums payable hereunder, and, if the Series 2019-3 Demand Note Payment Amount on the Series 2019-3 Letter of Credit Termination Date was greater than zero, all amounts have been withdrawn from the Series 2019-3 Cash Collateral Account in accordance with Section 2.8(i).
Section 5.14.    Noteholder Consent to Certain Amendments.  Each Series 2019-3 Noteholder, upon any acquisition of a Series 2019-3 Note, will be deemed to agree and consent to (i) the execution by ABRCF of a Supplemental Indenture to the Base Indenture substantially in the form of Exhibit I hereto, (ii) the execution of an amendment to the AESOP I Operating Lease substantially in the form of Exhibit J hereto, (iii) the execution of an amendment to the Finance Lease substantially in the form of Exhibit K hereto, (iv) the execution of an amendment to the AESOP I Operating Lease Loan Agreement substantially in the form of Exhibit L hereto and (v) the execution of an amendment to the AESOP I Finance Lease Loan Agreement substantially in the form of Exhibit M hereto. Such deemed consent will apply to each proposed amendment set forth in Exhibits I, J, K, L and M individually, and the failure to adopt any of the amendments set forth therein will not revoke the consent with respect to any other amendment.
Section 5.15.    Issuance of Class D Notes and Additional Class R Notes.  No Class D Notes shall be issued on the Series 2019-3 Closing Date.  On any date during the Series 2019-3 Revolving Period, ABRCF may (i) issue Class D Notes and (ii) issue additional Class R Notes in connection with the issuance of Class D Notes, to the extent that ABRCF determines such issuance is required to comply with the U.S. Risk Retention Rules (such notes, the “Additional Class R Notes”), subject to satisfaction of the following conditions precedent:
(a)    ABRCF and the Trustee shall have entered into an amendment to this Supplement (i) providing that the Class D Notes will bear a fixed rate of interest, determined on or prior the Additional Notes Closing Date, (ii) providing that the expected final payment date for the Class D Notes will be the Series 2019-3 Expected Final Distribution Date, (iii) providing that the principal amount of the Class D Notes will be due and payable on the Series 2019-3 Final Distribution 

	
			
	 
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Date, (iv) providing that the controlled amortization period with respect to the Class D Notes will be the Series 2019-3 Controlled Amortization Period and (v) providing for payment mechanics with respect to the Class D Notes substantially similar to those with respect to the Class A Notes, the Class B Notes and the Class C Notes (other than as set forth below) and consistent with Section 2.12 and such other provisions with respect to the Class D Notes and the Additional Class R Notes as may be required for such issuance;
(b)    The Trustee shall have received a Company Request at least two (2) Business Days (or such shorter time as is acceptable to the Trustee) in advance of the proposed closing date for the issuance of the Class D Notes and the Additional Class R Notes (if any) (the “Additional Notes Closing Date”) requesting that the Trustee authenticate and deliver the Class D Notes specified in such Company Request (such specified Class D Notes, the “Proposed Class D Notes”) and the Additional Class R Notes, if any, specified in such Company Request;
(c)    The Trustee shall have received a Company Order authorizing and directing the authentication and delivery of the Proposed Class D Notes and the Additional Class R Notes, if any, by the Trustee and specifying the designation of the Proposed Class D Notes, the initial aggregate principal amount of the Proposed Class D Notes to be authenticated, the Note Rate with respect to the Proposed Class D Notes and the initial aggregate principal amount of the Additional Class R Notes;
(d)    The Trustee shall have received written confirmation that the Rating Agency Confirmation Condition shall have been satisfied with respect to the issuance of the Proposed Class D Notes and Additional Class R Notes (if any) (including with respect to the Class A Notes, the Class B Notes and the Class C Notes);
(e)    The Trustee shall have received an Officer’s Certificate of ABRCF dated as of the Additional Notes Closing Date to the effect that (i) no Amortization Event with respect to the Series 2019-3 Notes, Aggregate Asset Amount Deficiency, Series 2019-3 Enhancement Deficiency, Loan Event of Default, AESOP I Operating Lease Vehicle Deficiency, Manufacturer Event of Default, Lease Event of Default, Potential Amortization Event with respect to the Series 2019-3 Notes, Potential Loan Event of Default, Potential Lease Event of Default, or Potential Manufacturer Event of Default is continuing or will occur as a result of the issuance of the Proposed Class D Notes and Additional Class R Notes (if any), (ii) the issuance of the Proposed Class D Notes and Additional Class R Notes (if any) will not result in any breach of any of the terms, conditions or provisions of or constitute a default under any indenture, mortgage, deed of trust or other agreement or instrument to which ABRCF is a party or by which it or its property is bound or any order of any court or administrative agency entered in any suit, action or other judicial or administrative proceeding to which ABRCF is a party or by which it or its property may be bound or to which it or its property may be subject, (iii) all conditions precedent provided in this Supplement and the Base Indenture with respect to the authentication and delivery of the Proposed Class D Notes and Additional Class R Notes (if any) have been complied with and (iv) the issuance of the Proposed Class D Notes and Additional Class R Notes (if any) and any related amendments to this Supplement and any Related Document relating solely to the Series 2019-3 Notes will not reduce 

	
			
	 
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the availability of the Series 2019-3 Enhancement to support the payment of interest on or principal of the Class A Notes, the Class B Notes or the Class C Notes in any material respect;
(f)    No amendments to this Supplement or any Related Document relating solely to the Series 2019-3 Notes in connection with the issuance of the Proposed Class D Notes and the Additional Class R Notes, if any, may provide for (i) the application of amounts available under the Series 2019-3 Letters of Credit or the Series 2019-3 Reserve Account to support the payment of interest on or principal of the Class D Notes while any Class A Notes, Class B Notes or Class C Notes remain outstanding, (ii) any voting rights in respect of the Class D Notes for so long as any Class A Notes, Class B Notes, Class C Notes or Class R Notes are outstanding, other than with respect to any amendments to the Indenture or any Related Document pursuant to clauses (i) and (ii) of Section 12.2 of the Base Indenture, (iii) the addition of any Amortization Event with respect to the Series 2019-3 Notes other than those related to payment defaults on the Class D Notes similar to those in respect of the Class A Notes, the Class B Notes, the Class C Notes or the Class R Notes and enhancement or liquidity deficiencies in respect of the credit enhancement supporting the Class D Notes similar to those in respect of the Class A Notes, the Class B Notes and the Class C Notes or (iv) the reallocation of Principal Collections allocable to the Series 2019-3 Notes to pay interest on the Class D Notes while the Class A Notes, Class B Notes or the Class C Notes remain outstanding.
(g)    The Trustee shall have received opinions of counsel substantially similar to those received in connection with the offering and sale of the Class A Notes, the Class B Notes, the Class C Notes and the Class R Notes, including, without limitation, opinions to the effect that:
(i)    (x) the Proposed Class D Notes should be treated as indebtedness of ABRCF for federal and New York state income tax purposes and (y) the issuance of the Proposed Class D Notes and Additional Class R Notes (if any) will not result in any of the Class A Notes, the Class B Notes, the Class C Notes or any other outstanding Series of Notes (excluding the Class R Notes and any other Series identified as “Class R”) failing to be characterized as debt for federal or New York state income tax purposes;
(ii)    all conditions precedent provided for in the Base Indenture and this Supplement with respect to the authentication and delivery of the Proposed Class D Notes and Additional Class R Notes (if any) has been complied with in all material respects; and
(iii)    the Proposed Class D Notes and Additional Class R Notes (if any) have been duly authorized and executed and, when authenticated and delivered in accordance with the provisions of the Base Indenture and this Supplement, will constitute valid, binding and enforceable obligations of ABRCF entitled to the benefits of the Base Indenture and this Supplement, subject, in the case of enforcement, to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights generally and to general principles of equity.
Section 5.16.    Confidential Information.  
(a)    The Trustee and each Series 2019-3 Note Owner agrees, by its acceptance and holding of a beneficial interest in a Series 2019-3 Note, to maintain the confidentiality of all 

	
			
	 
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Confidential Information in accordance with procedures adopted by the Trustee or such Series 2019-3 Note Owner in good faith to protect confidential information of third parties delivered to such Person; provided, however, that such Person may deliver or disclose Confidential Information to:  (i) such Person’s directors, trustees, officers, employees, agents, attorneys, independent or internal auditors and affiliates who agree to hold confidential the Confidential Information substantially in accordance with the terms of this Section 5.16; (ii) such Person’s financial advisors and other professional advisors who agree to hold confidential the Confidential Information substantially in accordance with the terms of this Section 5.16; (iii) any other Series 2019-3 Note Owner; (iv) any Person of the type that would be, to such Person’s knowledge, permitted to acquire an interest in the Series 2019-3 Notes in accordance with the requirements of the Indenture to which such Person sells or offers to sell any such Series 2019-3 Note or any part thereof and that agrees to hold confidential the Confidential Information substantially in accordance with this Section 5.16 (or in accordance with such other confidentiality procedures as are acceptable to ABRCF); (v) any federal or state or other regulatory, governmental or judicial authority having jurisdiction over such Person; (vi) the National Association of Insurance Commissioners or any similar organization, or any nationally recognized rating agency that requires access to information about the investment portfolio of such Person, (vii) any reinsurers or liquidity or credit providers that agree to hold confidential the Confidential Information substantially in accordance with this Section 5.16 (or in accordance with such other confidentiality procedures as are acceptable to ABRCF); (viii) any other Person with the consent of ABRCF; or (ix) any other Person to which such delivery or disclosure may be necessary or appropriate (A) to effect compliance with any law, rule, regulation, statute or order applicable to such Person, (B) in response to any subpoena or other legal process upon prior notice to ABRCF (unless prohibited by applicable law, rule, order or decree or other requirement having the force of law), (C) in connection with any litigation to which such Person is a party upon prior notice to ABRCF (unless prohibited by applicable law, rule, order or decree or other requirement having the force of law) or (D) if an Amortization Event with respect to the Series 2019-3 Notes has occurred and is continuing, to the extent such Person may reasonably determine such delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of the rights and remedies under the Series 2019-3 Notes, the Indenture or any other Related Document; provided, further, that delivery to any Series 2019-3 Note Owner of any report or information required by the terms of the Indenture to be provided to such Series 2019-3 Note Owner shall not be a violation of this Section 5.16.  Each Series 2019-3 Note Owner agrees, by acceptance of a beneficial interest in a Series 2019-3 Note, except as set forth in clauses (v), (vi) and (ix) above, that it shall use the Confidential Information for the sole purpose of making an investment in the Series 2019-3 Notes or administering its investment in the Series 2019-3 Notes.  In the event of any required disclosure of the Confidential Information by such Series 2019-3 Note Owner, such Series 2019-3 Note Owner agrees to use reasonable efforts to protect the confidentiality of the Confidential Information.
(b)    For the purposes of this Section 5.16, “Confidential Information” means information delivered to the Trustee or any Series 2019-3 Note Owner by or on behalf of ABRCF in connection with and relating to the transactions contemplated by or otherwise pursuant to the Indenture and the Related Documents; provided, however, that such term does not include information that:  (i) was publicly known or otherwise known to the Trustee or such Series 2019-3 Note Owner prior to the time of such disclosure; (ii) subsequently becomes publicly known through 

	
			
	 
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no act or omission by the Trustee, any Series 2019-3 Note Owner or any person acting on behalf of the Trustee or any Series 2019-3 Note Owner; (iii) otherwise is known or becomes known to the Trustee or any Series 2019-3 Note Owner other than (x) through disclosure by ABRCF or (y) as a result of the breach of a fiduciary duty to ABRCF or a contractual duty to ABRCF; or (iv) is allowed to be treated as non‐confidential by consent of ABRCF.
Section 5.17.    Capitalized Cost Covenant.   ABRCF hereby agrees that it shall not permit the aggregate Capitalized Cost for all Vehicles purchased in any model year that are not subject to a Manufacturer Program to exceed 85% of the aggregate MSRP (Manufacturer Suggested Retail Price) of all such Vehicles; provided, however, that ABRCF shall not modify the customary buying patterns or purchasing criteria used by the Administrator and its Affiliates with respect to the Vehicles if the primary purpose of such modification is to comply with this covenant.
Section 5.18.    Further Limitation of Liability.  Notwithstanding anything in this Supplement to the contrary, in no event shall the Trustee or its directors, officers, agents or employees be liable under this Supplement for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including, but not limited to, lost profits), even if the Trustee or its directors, officers, agents or employees have been advised of the likelihood of such loss or damage and regardless of the form of action.
Section 5.19.    Series 2019-3 Agent.  The Series 2019-3 Agent shall be entitled to the same rights, benefits, protections, indemnities and immunities hereunder as are granted to the Trustee under the Base Indenture as if set forth fully herein.
Section 5.20.    Force Majeure.  In no event shall the Trustee be liable for any failure or delay in the performance of its obligations under this Supplement because of circumstances beyond the Trustee’s control, including, but not limited to, a failure, termination, suspension of a clearing house, securities depositary, settlement system or central payment system in any applicable part of the world or acts of God, flood, war (whether declared or undeclared), civil or military disturbances or hostilities, nuclear or natural catastrophes, political unrest, explosion, severe weather or accident, earthquake, terrorism, fire, riot, labor disturbances, strikes or work stoppages for any reason, embargo, government action, including any laws, ordinances, regulations or the like (whether domestic, federal, state, county or municipal or foreign) which delay, restrict or prohibit the providing of the services contemplated by this Supplement, or the unavailability of communications or computer facilities, the failure of equipment or interruption of communications or computer facilities, or the unavailability of the Federal Reserve Bank wire or telex or other wire or communication facility, or any other causes beyond the Trustee’s control whether or not of the same class or kind as specified above.
Section 5.21.    Waiver of Jury Trial, etc.  EACH OF THE PARTIES HERETO HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES (TO THE EXTENT PERMITTED BY APPLICABLE LAW) ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS SUPPLEMENT, THE SERIES 2019-3 NOTES, THE SERIES 2019-3 DEMAND NOTES, THE SERIES 2019-3 LETTER OF CREDIT AND ANY OTHER RELATED DOCUMENTS EXECUTED IN CONNECTION WITH THE ISSUANCE OF 

	
			
	 
	61
	 

THE SERIES 2019-3 NOTES, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN), OR ACTIONS OF THE PARTIES HERETO.  THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES HERETO TO ENTER INTO THIS SUPPLEMENT.
Section 5.22.    Submission to Jurisdiction.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY SUBMITS (TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW) TO THE NON-EXCLUSIVE JURISDICTION OF ANY NEW YORK STATE OR FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN, NEW YORK CITY, STATE OF NEW YORK, OVER ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENT, THE SERIES 2019-3 NOTES, THE SERIES 2019-3 DEMAND NOTES, THE SERIES 2019-3 LETTER OF CREDIT AND ANY OTHER RELATED DOCUMENTS EXECUTED IN CONNECTION WITH THE ISSUANCE OF THE SERIES 2019-3 NOTES AND EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE OR FEDERAL COURT.  EACH OF THE PARTIES HERETO EACH HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION EACH MAY NOW OR HEREAFTER HAVE, TO THE LAYING OF VENUE IN ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT AS WELL AS ANY RIGHT EACH MAY NOW OR HEREAFTER HAVE, TO REMOVE ANY SUCH ACTION OR PROCEEDING, ONCE COMMENCED, TO ANOTHER COURT ON THE GROUNDS OF FORUM NON CONVENIENS OR OTHERWISE.  NOTHING CONTAINED HEREIN SHALL PRECLUDE ANY PARTY HERETO FROM BRINGING AN ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENT, THE SERIES 2019-3 NOTES, THE SERIES 2019-3 DEMAND NOTES, THE SERIES 2019-3 LETTER OF CREDIT AND ANY OTHER RELATED DOCUMENTS EXECUTED IN CONNECTION WITH THE ISSUANCE OF THE SERIES 2019-3 NOTES IN ANY OTHER COUNTRY, STATE OR PLACE HAVING JURISDICTION OVER SUCH ACTION OR PROCEEDING.
Section 5.23.    Additional Terms of the Series 2019-3 Notes. Solely with respect to this Supplement and the Series 2019-3 Notes: 
(a)    The Opinion of Counsel set forth in Section 2.2(f)(i)(x) of the Base Indenture shall not be required with respect to the Class R Notes. The Opinion of Counsel set forth in Section 2.2(f)(i)(y) of the Base Indenture shall not be required with respect to the Class R Notes for any Series issued after the date hereof.

(b)  The terms Rating Agency Confirmation Condition and Rating Agency Consent Condition shall be deemed to be satisfied with respect to Fitch if ABRCF notifies Fitch of the applicable action at least ten (10) calendar days prior to such action (or, if Fitch agrees to less than ten (10) calendar days’ notice, such lesser period) and Fitch has not notified ABRCF and the Trustee in writing that such action will result in a reduction or withdrawal of the rating given to the Class A Notes, the Class B Notes or the Class C Notes by Fitch within such ten (10) calendar day (or lesser) period.

	
			
	 
	62
	 

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

	
	
	AVIS BUDGET RENTAL CAR FUNDING (AESOP) LLC

	By: /s/ David Calabria
Name: David Calabria 
Title: Senior Vice President and Treasurer

Signature page to AESOP 2019-3 Indenture Supplement

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

	By: /s/ Mitchell L. Brumwell   
Name: Mitchell L. Brumwell
Title:   Vice President

	
	
	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Series 2019-3 Agent

	By: /s/ Mitchell L. Brumwell   
Name: Mitchell L. Brumwell
Title:   Vice President

Signature page to AESOP 2019-3 Indenture Supplement

	
				
	TABLE OF CONTENTS

	 
	Page

	ARTICLE I DEFINITIONS
	2

	ARTICLE II SERIES 2019-3 ALLOCATIONS
	27

	 
	Section 2.1.
	Establishment of Series 2019-3 Collection Account, Series 2019-3 Excess Collection Account and Series 2019-3 Accrued Interest Account
	27

	 
	Section 2.2.
	Allocations with Respect to the Series 2019-3 Notes
	27

	 
	Section 2.3.
	Payments to Noteholders
	32

	 
	Section 2.4.
	Payment of Note Interest
	36

	 
	Section 2.5.
	Payment of Note Principal
	36

	 
	Section 2.6.
	Administrator’s Failure to Instruct the Trustee to Make a Deposit or Payment
	41

	 
	Section 2.7.
	Series 2019-3 Reserve Account
	41

	 
	Section 2.8.
	Series 2019-3 Letters of Credit and Series 2019-3 Cash Collateral Account
	43

	 
	Section 2.9.
	Series 2019-3 Distribution Account
	47

	 
	Section 2.10.
	Series 2019-3 Accounts Permitted Investments
	49

	 
	Section 2.11.
	Series 2019-3 Demand Notes Constitute Additional Collateral for Series 2019-3 Senior Notes
	50

	 
	Section 2.12.
	Subordination of the Class B Notes, Class C Notes, Class D Notes and the Class R Notes
	50

	ARTICLE III AMORTIZATION EVENTS
	51

	ARTICLE IV FORM OF SERIES 2019-3 NOTES
	53

	 
	Section 4.1.
	Restricted Global Series 2019-3 Notes
	53

	 
	Section 4.2.
	Temporary Global Series 2019-3 Notes; Permanent Global Series 2019-3 Notes
	53

	ARTICLE V GENERAL
	54

	 
	Section 5.1.
	Optional Repurchase
	54

	 
	Section 5.2.
	Information
	54

	 
	Section 5.3.
	Exhibits
	54

	 
	Section 5.4.
	Ratification of Base Indenture
	55

	 
	Section 5.5.
	Counterparts
	55

	 
	Section 5.6.
	Governing Law
	55

	 
	Section 5.7.
	Amendments
	55

	 
	Section 5.8.
	Discharge of Base Indenture
	56

	 
	Section 5.9.
	Notice to Rating Agencies
	56

	 
	Section 5.10.
	Capitalization of ABRCF
	56

	 
	Section 5.11.
	Required Noteholders
	56

	 
	Section 5.12.
	Series 2019-3 Demand Notes
	56

	 
	Section 5.13.
	Termination of Supplement
	57

	 
	Section 5.14.
	Noteholder Consent to Certain Amendments
	57

	 
	Section 5.15.
	Issuance of Class D Notes and Additional Class R Notes
	57

	 
	Section 5.16.
	Confidential Information
	59

	
				
	 
	Section 5.17.
	Capitalized Cost Covenant
	60

	 
	Section 5.18.
	Further Limitation of Liability
	61

	 
	Section 5.19.
	Series 2019-3 Agent
	61

	 
	Section 5.20.
	Force Majeure
	61

	 
	Section 5.21.
	Waiver of Jury Trial, etc
	61

	 
	Section 5.22.
	Submission to Jurisdiction
	61

	 
	Section 5.23.
	Additional Terms of the Series 2019-3 Notes
	62ex_156744.htm

 

Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase Agreement (this “Agreement”) is dated as of             , 2019 (the “Effective Date”), among Sun BioPharma, Inc., a Delaware corporation (the “Company”), and those purchasers listed on the attached Schedule I as such schedule may be amended from time to time (each, including its successors and assigns, an “Investor” and collectively the “Investors”).

 

WHEREAS, pursuant to an exemption from registration under the Securities Act of 1933, as amended (the “Securities Act”), the Company desires to sell to the Investors, and the Investors, severally and not jointly, desire to purchase from the Company an aggregate of (a)              shares (the “Shares”) of the Company’s common stock, par value $0.001 per share (“Common Stock”), and (b) warrants to purchase up to               (100% warrant coverage) shares of Common Stock (the “Warrants” and collectively with the Common Stock the “Securities”) in the amounts set forth opposite such Investor’s name on Schedule I, in each case on the terms and subject to the conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and each Investor agree as follows:

 

ARTICLE I

PURCHASE COMMITMENT FOR SHARES; ISSUANCE OF WARRANTS 

 

1.1    Purchase Commitment. The Company agrees to issue and sell to each Investor, and each Investor agrees, severally and not jointly, to purchase from the Company, the number of Shares and Warrants, as set forth opposite such Investor’s name on Schedule I for the aggregate purchase price set forth opposite such Investor’s name on Schedule I (the “Purchase Price”).

 

ARTICLE II

DELIVERIES

 

2.1    Investors’ Deliveries. Each Investor has delivered or caused to be delivered to the Company the Purchase Price for the Securities to be purchased by such Investor as set forth opposite such Investor’s name on Schedule I by wire transfer of immediately available funds to the Company’s bank account pursuant to the wire instructions attached at Exhibit B, or such other means as Investor and Company agree.

 

2.2     Company’s Deliveries. Promptly on or after the Effective Date, the Company will deliver or cause the delivery to each of the Investors evidence of the issuance of the Securities being issued and sold to such Investor, which may take the form of a physical certificate or an electronic equivalent thereof, and a duly executed Warrant, in substantially the form attached hereto as Exhibit A, to purchase the number of shares of Common Stock set forth beside such Investor’s name on Schedule I. Such Warrants, together with this Agreement, are collectively referred to herein as the “Transaction Documents.”

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF COMPANY

 

The Company hereby represents and warrants to each Investor that, as of the Effective Date, except as set forth in the Company SEC Documents (as defined in Section 3.5) the following representations are true and complete (except as otherwise indicated):

 

 

 

 

3.1     Organization, Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has full corporate power and authority to own and use its properties and its assets and conduct its business as currently conducted. The Company is not in violation of its Restated Certificate of Incorporation or the Company’s Amended and Restated Bylaws (the “Charter Documents”). The Company, including each of its subsidiaries, has full power and authority to own, operate and occupy its properties and to conduct its business as presently conducted and is duly qualified to transact business and is in good standing in each jurisdiction in which the failure so to qualify would have a material adverse effect on its or its subsidiaries’ business, financial condition, properties, operations or assets or its ability to perform its obligations under this Agreement (a “Material Adverse Effect”).

 

3.2     Capitalization and Voting Rights. As of the Effective Date, the Company is authorized to issue 100,000,000 shares of Common Stock, of which 5,606,594 shares are issued and outstanding, and 10,000,000 shares of preferred stock, none of which are issued or outstanding, nor have any of the terms or preferences thereof been designated. All issued and outstanding shares of Common Stock of the Company have been validly issued, fully paid and nonassessable. Except as set forth herein or in the Company SEC Documents, there are no (i) outstanding rights (including, without limitation, preemptive rights), warrants or options to acquire, or instruments convertible into or exchangeable for, any unissued shares of capital stock or other equity interest in the Company, or any contract, commitment, agreement, understanding or arrangement of any kind to which the Company or any subsidiary is a party and relating to the issuance or sale of any capital stock or convertible or exchangeable security of the Company or any subsidiary, other than options to purchase up to 294,360 and 843,600 shares of Common Stock granted to directors, employees and service providers of the Company pursuant to its 2011 Stock Option Plan and 2016 Omnibus Incentive Plan, respectively, warrants to purchase up to 1,310,979 shares of Common Stock and an estimated 2,222 shares of Common Stock issuable upon conversion of outstanding indebtedness as of June 30, 2018; or (ii) obligations of the Company to purchase redeem or otherwise acquire any of its outstanding capital stock or any interest therein or to pay any dividend or make any other distribution in respect thereof. Except as disclosed in the Company SEC Documents, there are no anti-dilution or price adjustment provisions, co-sale rights, registration rights, rights of first refusal or other similar rights contained in the terms governing any outstanding security of the Company that will be triggered by the issuance of the Securities or the shares of Common Stock to be issued upon exercise of the Warrants (the “Warrant Shares” and, collectively with the Shares, the “Purchased Shares”). Except as disclosed in the Company SEC Documents and as otherwise required by law, there are no restrictions upon the voting or transfer of any of the shares of capital stock of the Company pursuant to the Charter Documents or other governing documents or any agreement or other instruments to which the Company is a party or by which the Company is bound. The Company does not have outstanding stockholder purchase rights or “poison pill” or any similar arrangement in effect giving any person the right to purchase any equity interest in the Company upon the occurrence of certain events.

 

3.3     Authorization; Enforceability. All corporate action on the part of the Company, its officers, directors and stockholders necessary for the authorization, execution and delivery of this Agreement has been taken. The Company has the requisite corporate power to enter into this Agreement and carry out and perform its obligations under the terms of this Agreement. The Company has the requisite corporate power to issue and sell the Securities. This Agreement has been duly authorized, executed and delivered by the Company and, upon due execution and delivery by the Investors, this Agreement will be a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally or by equitable principles.

 

3.4     No Conflict; Governmental Consents.

 

2

 

 

(a)     The execution and delivery by the Company of the Transaction Documents, the issuance and sale of the Securities (including, when issued, the Warrant Shares) and the consummation of the other transactions contemplated hereby or thereby do not and will not (i) result in the violation of any law, statute, rule, regulation, order, writ, injunction, judgment or decree of any court or governmental authority to or by which the Company is bound including, without limitation, all foreign, federal, state and local laws applicable to its business and all such laws that affect the environment, except in each case as could not have or reasonably be expected to result in a Material Adverse Effect, (ii) conflict with or violate any provision of the Charter Documents, and (iii) conflict with, or result in a material breach or violation of, any of the terms or provisions of, or constitute (with or without due notice or lapse of time or both) a default or give to others any rights of termination, amendment, acceleration or cancellation (with or without due notice, lapse of time or both) under any agreement, credit facility, lease, loan agreement, mortgage, security agreement, trust indenture or other agreement or instrument to which the Company is a party or is bound or to which its properties or assets is subject, nor result in the creation or imposition of any encumbrances upon any of its properties or assets, except in each case as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(b)     No consent, approval, authorization or other order of, or registration, qualification or filing with, any regulatory body, administrative agency, or other governmental body is required for the execution and delivery of this Agreement by the Company and the valid issuance or sale of the Securities (including, when issued, the Warrant Shares) by the Company pursuant to this Agreement, other than such as have been made or obtained and that remain in full force and effect, and except for post-sale filings as may be required to be made with the SEC, Financial Industry Regulatory Authority (“FINRA”) and with any state or foreign blue sky or securities regulatory authority, all of which will be filed on a timely basis.

 

3.5     SEC Filings; Financial Statements. The consolidated financial statements contained in each report, registration statement and definitive proxy statement filed by the Company with the Securities and Exchange Commission (the “SEC,” and the documents, the “Company SEC Documents”): (i) complied as to form in all material respects with the published rules and regulations of the SEC applicable thereto and were timely filed; (ii) the information contained therein as of the respective dates thereof did not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; (iii) were prepared in accordance with generally accepted accounting principles applied on a consistent basis throughout the periods covered (“GAAP”), except as may be indicated in the notes to such financial statements and (in the case of unaudited statements) as permitted by Form 10-Q of the SEC, and except that unaudited financial statements may not contain footnotes and are subject to year-end audit adjustments; and (iv) fairly present the consolidated financial position of the Company and its subsidiaries as of the respective dates thereof and the consolidated results of operations cash flows and the changes in stockholders’ equity of the Company and its subsidiaries for the periods covered thereby. Except as set forth in the financial statements included in the Company SEC Documents, neither the Company nor its subsidiaries has any liabilities, contingent or otherwise, other than liabilities incurred in the ordinary course of business subsequent to the fiscal year or quarter covered by the Company’s most recent filed periodic report on Form 10-K or Form 10-Q (the “Last Reported Period”), and liabilities of the type not required under generally accepted accounting principles to be reflected in such financial statements. Such liabilities incurred subsequent to the Last Reported Period, are not, in the aggregate, material to the financial condition or operating results of the Company and its subsidiaries, taken as a whole.

 

3.6      Disclosure Controls and Internal Controls.

 

(a)     The Company has established and maintains disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the Exchange Act) that are (i) are designed to ensure that material information relating to the Company and its subsidiaries is made known to the Company’s

 

3

 

 

principal executive officer and its principal financial officer by others within those entities particularly during the periods in which the periodic reports required under the Exchange Act are being prepared; and (ii) provide for the periodic evaluation of the effectiveness of such disclosure controls and procedures as of the end of the period covered by the Company’s most recent annual or quarterly report filed with the SEC.

 

(b)     The Company maintains a systems of internal accounting controls sufficient to provide reasonable assurance that (a) transactions are executed in accordance with management’s general or specific authorizations; (b) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability; (c) access to assets is permitted only in accordance with management’s general or specific authorization; and (d) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. Except as set forth in the Company SEC Documents, the Company is not aware of (i) any significant deficiency in the design or operation of internal controls that could adversely affect the Company’s ability to record, process, summarize and report financial data or any material weaknesses in internal controls; or (ii) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal controls.

 

3.7    Licenses; Permits. Except as set forth in the Company SEC Documents, the Company has sufficient licenses, permits and other governmental authorizations required for the conduct of its business or ownership of properties and is in compliance therewith, except to the extent the failure to comply would not result in a Material Adverse Effect. The Company possesses all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct its business as described in the Company SEC Documents, except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect (“Material Permits”), and the Company has not received any notice of proceedings relating to the revocation or modification of any Material Permit.

 

3.8     Litigation. Except as set forth in the Company SEC Documents, there is no action, suit, proceeding nor investigation pending or, to the Company’s knowledge, currently threatened against the Company. Neither the Company nor any subsidiary is subject to any injunction, judgment, decree or order of any court, regulatory body, arbitral panel, administrative agency or other government body.

 

3.9    Contracts. Except for matters described in the Company SEC Documents that are not reasonably likely to have a Material Adverse Effect and those contracts that are substantially or fully performed or expired by their terms, the contracts listed as exhibits to or described in the Company SEC Documents that are material to the Company or any of its subsidiaries and all amendments thereto, are in full force and effect on the date hereof, and, except for Company payment obligations thereunder, neither the Company nor, to the Company’ knowledge, any other party to such contracts is in material breach of or default under any of such contracts. The Company has no contracts or agreements that would constitute a material contract as such term is defined in Item 601(b) of Regulation S-K, except for such contracts or agreements that are filed as exhibits to or described in the Company SEC Documents.

 

3.10     Intellectual Property.

 

(a)     The Company has ownership or license or legal right to use all patent, copyright, trade secret, know-how trademark, trade name customer lists, designs, manufacturing or other processes, computer software, systems, data compilation, research results or other proprietary rights used in the business of the Company (collectively “Intellectual Property”). All of such patents, registered trademarks and registered copyrights have been duly registered in, filed in or issued by the United States Patent and Trademark Office, the United States Register of Copyrights or the corresponding offices of other

 

4

 

 

jurisdictions and have been maintained and renewed in accordance with all applicable provisions of law and administrative regulations in the United States and all such jurisdictions.

 

(b)     The Company believes it has taken all reasonable steps required in accordance with sound business practice and business judgment to establish and preserve its and its subsidiaries ownership of all material Intellectual Property with respect to their products and technology.

 

(c)     To the knowledge of the Company, the present business, activities and products of the Company and its subsidiaries do not infringe any intellectual property rights of any other person, except where such infringement would not have a Material Adverse Effect. No proceeding charging the Company with infringement of any adversely held Intellectual Property has been filed to the knowledge of the Company.

 

(d)     No proceedings have been instituted or pending or, to the knowledge of the Company, threatened, which challenge the rights of the Company to the use of the Intellectual Property. The Company has the right to use, free and clear of material claims or rights of other persons, all of its customer lists, designs, computer software, systems, data compilations, and other information that are required for its products or its business as presently conducted. Neither the Company nor any subsidiary is making unauthorized use of any confidential information or trade secrets of any person. The activities of any of the employees on behalf of the Company or of any subsidiary do not violate any agreements or arrangements between such employees and third parties are related to confidential information or trade secrets of third parties or that restrict any such employee’s engagement in business activity of any nature.

 

(e)     Except as described in the Company SEC Documents, all licenses or other agreements under which (i) the Company or any subsidiary employs rights in Intellectual Property, or (ii) the Company or any subsidiary has granted rights to others in Intellectual Property owned or licensed by the Company or any subsidiary are in full force and effect, and there is no default (and there exists no condition which, with the passage of time or otherwise, would constitute a default by the Company or such subsidiary) by the Company or any subsidiary with respect thereto.

 

3.11    Employees. The Company is not a party to any collective bargaining agreement and does not employ any member of a union. The Company believes that its relations with its employees are good. Except as previously disclosed in the Company SEC Documents, no executive officer of the Company (as defined in Rule 501(f) of the Securities Act) has retired, resigned or been terminated from that position or otherwise terminate such officer’s employment with the Company. No executive officer of the Company, to the knowledge of the Company, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement, non-competition agreement, or any other contract or agreement or any restrictive covenant, and the continued employment of each such executive officer does not subject the Company to any liability with respect to any of the foregoing matters. The Company is in compliance with all federal, state, local and foreign laws and regulations respecting labor, employment and employment practices and benefits, terms and conditions of employment and wages and hours, except where failure to be in compliance would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

 

3.12    Obligations to Related Parties. To the knowledge of the Company, except for matters described in the Company SEC Documents, no transaction has occurred between or among the Company or any of its affiliates (including, without limitation, any of its subsidiaries), officers or directors or any affiliate or affiliates of any such affiliate officer or director that with the passage of time will be required to be disclosed pursuant to Section 13, 14 or 15(d) of the Exchange Act.

 

5

 

 

3.13   No Material Changes. Except as disclosed in the Company SEC Documents, since the last day of the Last Reported Period, there has been no material adverse change in the assets, liabilities, business, properties, operations, financial condition or results of operations of the Company and its subsidiaries, taken as a whole. Since last day of the Last Reported Period, the Company has not declared or paid any dividend or distribution or its capital stock.

 

3.14   No General Solicitation or Advertising. None of the Company, any of its affiliates, and any person acting on their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities Act) in connection with the offer or sale of the Securities.

 

3.15    No Integrated Offering. Assuming the accuracy of the Investors representations and warranties set forth in Article IV hereunder, none of the Company, any of its affiliates, and any person acting on its behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of any of the Securities under the Securities Act or cause this offering of the Securities to be integrated with prior offerings by the Company for purposes of the Securities Act or any applicable stockholder approval provisions, including, without limitation, under the rules and regulations of any exchange or automated quotation system on which any of the securities of the Company are listed or designated.

 

3.16   Application of Takeover Protections. The Company and its board of directors have taken all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Charter Documents or the laws of its state of incorporation that is or could become applicable to an Investor as a result of an Investor and the Company fulfilling their obligations or exercising their rights under this Agreement, including, without limitation, the Company’s issuance of the Securities and any Investor’s ownership of the Securities.

 

3.17    Registration Rights. Except as disclosed in the Company SEC Documents and as set forth in this Agreement, no person has any right to cause the Company to effect the registration under the Securities Act of any securities of the Company.

 

3.18    Trading Matters. Our common stock is quoted on the OTCQB Venture Market operated by OTC Markets Group, Inc. (“OTCQB”) under the ticker symbol “SNBP.” The Company has not taken any action designed to, or which to its knowledge is likely to have the effect of, preclude, or otherwise jeopardize, the eligibility of the Common Stock for quotation on the over-the-counter markets. The Company does not have any reasonable basis to believe that the Common Stock is the subject of removal from the OTCQB Venture Market or suspension of quotation or eligibility for quotation on the over-the-counter markets (or hearings or any similar process related thereto).

 

3.19    Investment Company. The Company is not an “investment company” within the meaning of such term under the Investment Company Act of 1940, as amended, and the rules and regulations of the SEC thereunder.

 

3.20    No Broker Fees. The Company has not engaged any brokers, finders, or agents, and the Company has not incurred, and neither the Company nor any Investor will incur, directly or indirectly, as a result of any action taken by the Company, any liability for brokerage or finders’ fees or agents’ commissions or any similar charges in connection with this Agreement.

 

6

 

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF INVESTORS

 

Each Investor, for itself and for no other Investor, hereby represents, warrants and covenants to the Company as follows as of the date Effective Date:

 

4.1     Organization; Authority. Such Investor is either an individual or an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with full right, corporate or partnership power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement and performance by such Investor of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate, partnership, limited liability company or similar action, as applicable, on the part of such Investor. Each Transaction Document to which it is a party has been duly executed by such Investor, and when delivered by such Investor in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Investor, enforceable against it in accordance with its terms, except: (a) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (b) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (c) insofar as indemnification and contribution provisions may be limited by applicable law. The Investor has all requisite authority (and in the case of an individual, the capacity) to purchase the Securities, enter into this Agreement and to perform all the obligations required to be performed by the Investor hereunder, and such purchase will not contravene any law, rule, regulation or order binding on the Investor or any investment guideline or restriction applicable to the Investor.

 

4.2     Investor Status. Such Investor is an “accredited investor” as such term is defined in Rule 501(a) of the rules and regulations promulgated under the Securities Act. The Investor agrees to furnish any additional information requested by the Company or any of its affiliates to assure compliance with applicable U.S. federal and state securities laws in connection with the purchase and sale of the Securities. The Investor acknowledges that the Investor has completed the signature page to this Agreement and that the information contained therein is complete and accurate as of the Effective Date and does not contain any misrepresentation or material omission.

 

4.3     Residency. Such Investor is a resident of or organized under the laws of the state set forth beneath such Investor’s name on the signature page attached hereto, and its principal place of operations, if any, is in the state set forth beneath such Investor’s name on the signature page attached hereto.

 

4.4     Experience of Investor; Due Diligence. Such Investor, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities. Such Investor has, in connection with its decision to purchase the Securities, relied only upon the representations and warranties contained herein and the information contained in the Company SEC Documents. Further, such Investor has had such opportunity to obtain additional information and to ask questions of, and receive answers from, the Company, concerning the terms and conditions of the investment and the business and affairs of the Company, as the Investor considers necessary in order to form an investment decision.

 

4.5     Prior Pre-Existing Relationship; No General Solicitation or Advertising. Such Investor hereby represents that (a) such Investor was contacted regarding the sale of the Securities by the Company (or another person whom such Investor believed to be an authorized agent or representative thereof) with whom such Investor had a prior substantial pre-existing relationship and (b) such Investor did not learn of the offering of the Securities by means of any form of general solicitation or general advertising, and in connection therewith, such Investor did not (i) receive or review any advertisement, article, notice or other

 

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communication published in a newspaper or magazine or similar media or broadcast over television or radio, whether closed circuit, or generally available; or (ii) attend any seminar meeting or industry investor conference whose attendees were invited by any general solicitation or general advertising.

 

4.6    Transfer Restrictions; Legends. Such Investor hereby acknowledges that the sale of the Securities hereunder have not been reviewed by the SEC nor any state regulatory authority since the transactions contemplated hereunder are intended to be exempt from the registration requirements of Section 5 of the Securities Act, pursuant to Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D. Such Investor understands that the Securities are “restricted securities” as such term is defined in Rule 144 under the Securities Act and have not been registered under the Securities Act or under any state securities or “blue sky” laws and agrees not to sell, pledge, assign or otherwise transfer or dispose of the Securities unless they are registered under the Securities Act and under any applicable state securities or “blue sky” laws or unless an exemption from such registration is available. Such Investor hereby consents to the placement of a legend on any certificate or other document evidencing the Securities (including, when issued, the Warrant Shares), that such securities have not been registered under the Securities Act or any state securities or “blue sky” laws and setting forth or referring to the restrictions on transferability and sale thereof contained in this Agreement. Such Investor is aware that each certificate representing the Securities will be endorsed with the following legend until the earlier of (1) in the case of the Shares and Warrant Shares, such date as the Shares or Warrant Shares, as the case may be, have been registered for resale by the Investor or (2) the date the Shares, the Warrants or the Warrant Shares, as the case may be, are eligible for sale under Rule 144 under the Securities Act:

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATES. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. UNLESS SOLD PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 

4.7    Investment Intent. Such Investor hereby represents that such Investor is purchasing the Securities for such Investor’s own account for investment and not with a view toward the resale or distribution to others; provided, however, that nothing contained herein shall constitute an agreement by such Investor to hold the Securities for any particular length of time and the Company acknowledges that such Investor shall at all times retain the right to dispose of its property as it may determine in its sole discretion, subject to any restrictions imposed by applicable law. Such Investor, if an entity, further represents that it was not formed for the purpose of purchasing the Securities.

 

4.8     No Investment, Tax or Legal Advice. Each Investor understands that nothing in the Company SEC Documents, this Agreement, or any other materials presented to the Investor in connection with the purchase and sale of the Securities constitutes legal, tax or investment advice. Each Investor has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of Securities.

 

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4.9     No Public Disclosures. Such Investor hereby agrees not to issue any public statement with respect to the transactions contemplated by this Agreement, such Investor’s investment or proposed investment in the Company or the terms of any agreement or covenant between them and the Company, without the Company’s prior written consent, except such disclosures as may be required under applicable law.

 

4.10   Confidentiality; Non-Public Information. Such Investor hereby acknowledges that certain of the information contained in the Transaction Documents or otherwise made available to such Investor may be confidential and non-public and agrees that the portion of such information that is confidential shall be kept in confidence by such Investor and neither used by such Investor for such Investor’s personal benefit (other than in connection with the terms of this Agreement) nor disclosed to any third party for any reason; provided, however, that (a) such Investor may disclose such information to its affiliates and advisors who may have a need for such information in connection with providing advice to such Investor with respect to its investment in the Company so long as such affiliates and advisors have an obligation of confidentiality, and (b) this obligation shall not apply to any such information that (i) is part of the public knowledge or literature and readily accessible at the date hereof, (ii) becomes part of the public knowledge or literature and readily accessible by publication (except as a result of a breach of this provision) or (iii) is received from third parties without an obligation of confidentiality (except third parties who disclose such information in violation of any confidentiality agreements or obligations, including, without limitation, any subscription or other similar agreement entered into with the Company). Such Investor hereby acknowledges that certain information concerning the matters that are the subject matter of this Agreement may constitute material non-public information under U.S. federal securities laws, and that U.S. federal securities laws prohibit any person who has received material non-public information relating to the Company from purchasing or selling securities of the Company, or from communicating such information to any person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell securities of the Company. Accordingly, until such time as any material non-public information that has been received by the Investor has been adequately disseminated to the public, such Investor agrees that such Investor will not purchase or sell any securities of the Company on any trading market or otherwise, or communicate such information to any other person.

 

4.11    Short Sales and Confidentiality Prior to Date Hereof. Other than the transaction contemplated hereunder, such Investor hereby represents that such Investor has not, directly or indirectly, nor has any person acting on behalf of or pursuant to any understanding with such Investor, executed any disposition, including Short Sales (as such term is defined in Rule 200 of Regulation SHO under the Exchange Act), in the securities of the Company during the period commencing from the time that such Investor first received written or oral notice of the transactions contemplated by this Agreement from the Company or any other person setting forth the material terms of the transactions contemplated hereunder or this Agreement until the date hereof. Such Investor shall not, and shall cause its affiliates not to, engage, directly or indirectly, in any transactions in the securities of the Company (including, without limitation, any Short Sales (as such term is defined in Rule 200 of Regulation SHO under the Exchange Act) during the period from the date hereof until such time as (a) the transactions contemplated by this Agreement are first publicly announced or (b) this Agreement is terminated. Notwithstanding the foregoing, in the case of an Investor that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Investor’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Investor’s assets, the representations and covenants set forth in this Section 4.11 shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered by this Agreement. Other than to other persons party to this Agreement, such Investor has maintained the confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction).

 

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4.12    No Broker Fees. The Investor has not engaged any brokers, finders, or agents, and the Investor has not incurred, and neither the Investor nor the Company will incur, directly or indirectly, as a result of any action taken by the Investor, any liability for brokerage or finders’ fees or agents’ commissions or any similar charges in connection with this Agreement.

 

ARTICLE V

COVENANTS

 

5.1    Reservation of Shares. The Company shall, at all times, reserve for issuance out of its authorized and unissued shares of Common Stock, such number of shares of Common Stock as can reasonably be anticipated to be required for issuance under this Agreement.

 

5.2     Financial Information. In the event the Company is no longer subject to the reporting requirements of the Exchange Act, the Company will deliver to the Investors within 45 days after the end of each fiscal quarter other than the Company’s fourth fiscal quarter and 90 days after the end of the Company’s fiscal year, the financial statements of the Company, prepared in accordance with United States generally accepted accounting principles (subject to the absence of footnotes and normal year-end adjustments for quarterly financial statements), consistently applied, and audited by the Company’s independent public accountants in the case of year-end financial statements.

 

5.3     Corporate Existence. The Company will maintain its corporate existence in good standing. The Company will use commercially reasonable efforts to conduct its business in compliance with all applicable laws, rules and regulations of the jurisdictions in which it is conducting business, including, without limitation, all applicable local, state and federal environmental laws and regulations, except where the failure to comply with such laws, rules and regulations would not have a Material Adverse Effect.

 

5.4    Compliance. Each Investor agrees to comply with all applicable laws and regulations in effect in any jurisdiction in which the Investor purchases or sells Securities and obtain any consent, approval or permission required for such purchases or sales under the laws and regulations of any jurisdiction to which the Investor is subject or in which the Investor makes such purchases or sales, and the Company shall have no responsibility therefor.

 

ARTICLE VI

ADDITIONAL RESTRICTIONS ON SALE; LOCK-UP

 

Each holder of Purchased Shares agrees that in connection with any registered offering of the Common Stock or other equity securities of the Company, and upon the request of the managing underwriter in such offering, such holder shall not, without the prior written consent of such managing underwriter, during the period commencing on the effective date of such registration and ending on the date specified by such managing underwriter (such period not to exceed 180 days), (a) offer, pledge, sell, contract to sell, grant any option or contract to purchase, purchase any option or contract to sell, hedge the beneficial ownership of or otherwise dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into, exercisable for or exchangeable for shares of Common Stock held immediately before the effectiveness of the registration statement for such offering/(whether such shares or any such securities are then owned by the holder or are thereafter acquired), or (b) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of such securities, whether any such transaction described in clause (a) or (b) above is to be settled by delivery of Common Stock or such other securities, in cash or otherwise. The foregoing provisions of this Article VI shall not apply to sales of Purchased Shares to be included in such offering (if any), and shall be applicable to the holders of Purchased Shares only if all officers and directors of the Company and all stockholders owning more than 10% of the Company’s outstanding Common Stock are subject to the same

 

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restrictions. Each holder of Purchased Shares agrees to execute and deliver such other agreements as may be reasonably requested by the Company or the managing underwriter which are consistent with the foregoing or which are necessary to give further effect thereto. Notwithstanding anything to the contrary contained in this Article VI, each holder of Purchased Shares shall be released, pro rata, from any lock-up agreement entered into pursuant to this Article VI in the event and to the extent that the managing underwriter or the Company permit any discretionary waiver or termination of the restrictions of any lock-up agreement pertaining to any officer, director or holder of greater than 10% of the outstanding Common Stock. Nothing in this Article VI shall entitle any holder to participation in any future offering of Company securities or registration thereof.

 

ARTICLE VII

MISCELLANEOUS

 

7.1     Fees and Expenses. Each party shall pay the fees and expenses of its respective advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all transfer agent fees, stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to the Investors.

 

7.2    Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters.

 

7.3     Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto prior to 5:30 p.m. (New York time) on any Business Day, (b) the next Business Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Business Day or later than 5:30 p.m. (New York time) on any Business Day, (c) the second (2nd) Business Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto unless the dispatching party has received a written communication from the receiving party establishing a new address prior to dispatch. For the purposes of this Agreement, the term “Business Day” shall mean any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.

 

7.4     Amendments; Waivers. Except as otherwise provided herein, any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance, either retroactively or prospectively, and either for a specified period of time or indefinitely), with the written consent of the Company and Investors holding a majority of the Common Stock issued pursuant to this Agreement, including shares then issued pursuant to the valid exercise of Warrants. Any amendment or waiver effected in accordance with this Section 7.4 shall be binding upon any holder of any Securities purchased under this Agreement (including securities into which such Securities have been converted), each future holder of all such securities, and the Company.

 

7.5     Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

 

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7.6     Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each Investor (other than by merger or disposition of substantially all of its assets). Any Investor may assign any or all of its rights under this Agreement to any person to whom such Investor assigns or transfers any Securities, provided that such transferee agrees in writing to be bound, with respect to the transferred Securities, by the provisions of the Transaction Documents that apply to the “Investors.”

 

7.7     No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

7.8     Governing Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall be governed by and construed and enforced in accordance with the laws of the State of Delaware, without giving effect to conflict of laws principles thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates, directors, officers, stockholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of Minneapolis, Minnesota. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of Minneapolis, Minnesota for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If either party shall commence an action or proceeding to enforce any provisions of the Transaction Documents, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

 

7.9     Survival. The representations and warranties contained herein shall survive the the delivery of the Securities for the applicable statute of limitations.

 

7.10   Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.

 

7.11    Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that

 

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contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

7.12  Replacement of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity or security, if requested. The applicant for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement Securities.

 

7.13    Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Investors and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents and hereby agree to waive and not to assert in any action for specific performance of any such obligation the defense that a remedy at law would be adequate.

 

7.14   Payment Set Aside. To the extent that the Company makes a payment or payments to any Investor pursuant to any Transaction Document or an Investor enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

7.15   Independent Nature of Investors’ Obligations and Rights. The obligations of each Investor under any Transaction Document are several and not joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the performance or non-performance of the obligations of any other Investor under any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken by any Investor pursuant thereto, shall be deemed to constitute the Investors as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. Each Investor shall be entitled to independently protect and enforce its rights including, without limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Investor to be joined as an additional party in any proceeding for such purpose. Each Investor has been represented by its own separate legal counsel in their review and negotiation of the Transaction Documents. The Company has elected to provide all Investors with the same terms and Transaction Documents for the convenience of the Company and not because it was required or requested to do so by any of the Investors.

 

7.16   Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day.

 

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7.17   Construction. The parties agree that each of them and/or their respective counsel has reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments hereto. In addition, each and every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement

 

7.18    Waiver of Conflicts. Each party to this Agreement acknowledges that Faegre Baker Daniels LLP, counsel for the Company, has in the past performed and may continue to perform legal services for certain of the Investors in matters unrelated to the transactions described in this Agreement, including the representation of such Investors in financings and other matters. Accordingly, each party to this Agreement hereby (a) acknowledges that they have had an opportunity to ask for information relevant to this disclosure; and (b) gives its informed consent to Faegre Baker Daniels’ representation of certain of the Investors in such unrelated matters and to Faegre Baker Daniels’ representation of the Company in connection with this Agreement and the transactions contemplated hereby.

 

7.19   WAIVER OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

 

[Signature pages follow]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

 

 

	
			SUN BIOPHARMA, Inc.

			 

				
			Address for Notice:

			712 Vista Blvd., #305

			Waconia, MN 55387

			Attn: Chief Executive Officer

			
	
			By:

				 	 	 
	
			Name:

				 	 	 
	
			Title:

				 	 	 

 

	
			With a copy to (which shall not constitute notice):

			 

			Faegre Baker Daniels LLP

			90 South Seventh Street

			2200 Wells Fargo Center

			Minneapolis, MN 55402-3901

			Fax: (612) 766-1600

			Attention: W. Morgan Burns

				 

 

 

[Company Signature Page to Securities Purchase Agreement]

 

 

 

 

IN WITNESS WHEREOF, the undersigned has caused this Agreement to be duly executed as of the date first above written.

 

	
			 

				
			Investor (Natural Person(s)):

			 

			 

			
	
			

			Aggregate Purchase Price: $                                                                                         .00

			Shares of Common Stock Purchased:.                                                                            0

			Shares Underlying Warrants Purchased:.                                                                       0

			 

			The Securities will be held as follows (check one):

			☐ Individual Ownership

			☐ Community Property

			☐ Joint Tenancy with Right of Survivorship (JTWROS)

			(both parties must sign)

			☐ Tenants in Common

			☐ Other (please describe):                                                                                             

				
			Signature(s):                                                                                                                    

			 

			Name(s):                                                                                                                         

			 

			 

			Address:                                                                                                                          

			                                                                                                                          

			Email:                                                                                                                              

			Phone:                                                                                                                             

			 

			 

			U.S. Taxpayer ID(s):                                                                                                                                                                                                                              

			
	 	 
	
			Mark all that are applicable:

			 

			☐ Investor is an individual with a net worth, or a joint net worth together with his or her spouse, in excess of $1,000,000.

			 

			☐ Investor is an individual that had an individual income in excess of $200,000 in each of the prior two years and reasonably expects an income in excess of $200,000 in the current year or an individual that had with his/her spouse joint income in excess of $300,000 in each of the prior two years and reasonably expects joint income in excess of $300,000 in the current year.

			 

			☐ Investor is a director or executive officer of the Company.

			 

			

 

UNITED STATES TAXABLE INVESTORS ONLY

 

Under penalty of perjury, by signature above, each Investor signatory certifies that (a) the Social Security Number(s) or Taxpayer ID Number(s) shown above are the true, correct and complete Social Security Number(s) or Taxpayer ID Number(s) for the Investor and (b) the Investor is not subject to backup withholding because: (i) Investor is exempt from backup withholding; (ii) Investor has not been notified by the Internal Revenue Service (the “IRS”) that Investor is subject to backup withholding; or (iii) the IRS has notified Investor that Investor is no longer subject to backup withholding.

 

 

[Investor Signature Page to Securities Purchase Agreement]

 

 

 

 

Exhibit B

 

IN WITNESS WHEREOF, the undersigned has caused this Agreement to be duly executed as of the date first above written.

 

	 	
			Investor (Entity Name):

			 

			 

			
	
			

			Aggregate Purchase Price: $                                                    .00

			Shares of Common Stock Purchased:.                                                           0

			Shares Underlying Warrants Purchased:.                                                                        0

			 

			The Securities will be held as follows (check one):

			☐ Corporation

			☐ Trust

			☐ Limited Liability Company

			☐ Partnership

			☐ Other (please describe):                                                                                             

				
			By:                                                                                                                                   

			Name:                                                                                                                              

			Title:                                                                                                                                

			 

			 

			Address:                                                                                                                          

			                                                                                                                          

			Email:                                                                                                                              

			Phone:                                                                                                                             

			 

			U.S. Taxpayer ID(s):                                                                                                                                                                                                                                                                

			

 

 

	
			Mark all that are applicable:

			 

			☐ Investor is an entity all of whose members are either (a) individuals with a net worth, or a joint net worth together with the individual’s spouse, in excess of $1,000,000, (b) individuals that had an individual income in excess of $200,000 in each of the prior two years and reasonably expect an income in excess of $200,000 in the current year or (c) individuals that had with the individual’s spouse joint income in excess of $300,000 in each of the prior two years and reasonably expect joint income in excess of $300,000 in the current year.

			 

			☐ Investor is a private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940, an investment company registered under the Investment Company Act of 1940, a business development company as defined in Section 2(a)(48) of the Investment Company Act of 1940 or a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958.

			 

			☐ Investor has total assets in excess of $5,000,000, was not formed for the specific purpose of acquiring the securities and is one or more of the following (check one or more, as appropriate): 

			 

			☐ an organization described in Section 501(c)(3) of the Internal Revenue Code;

			 

			☐ a corporation;

			 

			☐ a Massachusetts or similar business trust; or

			 

			☐ a partnership.

			 

			☐ Investor is a trust with total assets exceeding $5,000,000 that was not formed for the specific purpose of acquiring securities and whose purchase is directed by a person who has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the investment in the securities.

			 

			

 

UNITED STATES TAXABLE INVESTORS ONLY

 

Under penalty of perjury, by signature above, each Investor signatory certifies that (a) the Taxpayer ID Number(s) shown above are the true, correct and complete Taxpayer ID Number(s) for the Investor and (b) the Investor is not subject to backup withholding because: (i) Investor is exempt from backup withholding; (ii) Investor has not been notified by the Internal Revenue Service (the “IRS”) that Investor is subject to backup withholding; or (iii) the IRS has notified Investor that Investor is no longer subject to backup withholding.

 

 

[Investor Signature Page to Securities Purchase Agreement]

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