Document:

Credit Agreement

    

    Exhibit
      10.1

    

     

     

    

      
        

      

    

    

    

    CREDIT
      AGREEMENT

    

    DATED
      AS
      OF DECEMBER 6, 2006

    

    Among

    

    CITIZENS
      COMMUNICATIONS COMPANY

    

    as
      the
      Borrower,

    

    and

    

    COBANK,
      ACB,

     

    as
      the
      Administrative Agent, the Lead Arranger and a Lender,

    

    and

    

    the
      other
      Lenders referred to herein

    

     

      
        

      

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    

    TABLE
      OF CONTENTS

    

    
      	
              SECTION
                1 AMOUNTS AND TERMS OF TERM LOAN
                FACILITY

            	
              1

            
	 	 	 	 
	 	
              1.1

            	
              Loan

            	
              1

            
	 	
              1.2

            	
              Interest

            	
              1

            
	 	
              1.3

            	
              Notice
                of Borrowing, Conversion or
                Continuation of Loans

            	
              4

            
	 	
              1.4

            	
              Fees
                and Expenses

            	
              5

            
	 	
              1.5

            	
              Payments

            	
              6

            
	 	
              1.6

            	
              Termination
                of the Term Loan
                Commitment and Repayments of Loans

            	
              7

            
	 	
              1.7

            	
              Voluntary
                Prepayments

            	
              8

            
	 	
              1.8

            	
              Application
                of Prepayments and
                Repayments; Payment of Breakage Fees, Etc.

            	
              8

            
	 	
              1.9

            	
              Loan
                Accounts

            	
              9

            
	 	
              1.10

            	
              Changes
                in LIBOR Rate
                Availability

            	
              9

            
	 	
              1.11

            	
              Capital
                Adequacy and Other
                Adjustments

            	
              9

            
	 	
              1.12

            	
              Optional
                Prepayment/Replacement of Lender
                in Respect of Increased Costs

            	
              11

            
	 	
              1.13

            	
              Taxes

            	
              11

            
	 	
              1.14

            	
              Changes
                in Laws

            	
              13

            
	 	
              1.15

            	
              Term
                of This
                Agreement

            	
              14

            
	 	 	 	 
	
              SECTION
                2 AFFIRMATIVE COVENANTS

            	
              14

            
	 	 	 	 
	 	
              2.1

            	
              Existence;
                Businesses and
                Properties

            	
              14

            
	 	
              2.2

            	
              Maintaining
                Records

            	
              15

            
	 	
              2.3

            	
              Use
                of Proceeds

            	
              15

            
	 	
              2.4

            	
              CoBank
                Patronage Capital

            	
              16

            
	 	 	 	 
	
              SECTION
                3 NEGATIVE COVENANTS

            	
              16

            
	 	 	 	 
	 	
              3.1

            	
              Liens;
                Restrictions on Sales of
                Receivables

            	
              17

            
	 	
              3.2

            	
              Ownership
                of the Principal
                Subsidiaries

            	
              17

            
	 	
              3.3

            	
              Asset
                Sales

            	
              17

            
	 	
              3.4

            	
              Mergers

            	
              17

            
	 	
              3.5

            	
              Restrictions
                on
                Dividends

            	
              18

            
	 	
              3.6

            	
              Transactions
                with
                Affiliates

            	
              18

            
	 	
              3.7

            	
              Guarantees

            	
              18

            
	 	 	 	 
	
              SECTION
                4 FINANCIAL COVENANTS AND
                REPORTING

            	
              18

            
	 	 	 	 
	 	
              4.1

            	
              Total
                Leverage Ratio

            	
              19

            
	 	
              4.2

            	
              Financial
                Statements and Other
                Reports

            	
              19

            
	 	
              4.3

            	
              Accounting
                Terms; Utilization of GAAP for
                Purposes of Calculations Under Agreement

            	
              21

            
	 	 	 	 
	
              SECTION
                5 REPRESENTATIONS AND
                WARRANTIES

            	
              21

            
	 	 	 	 
	 	
              5.1

            	
              Organization,
                Powers, Governmental
                Approvals

            	
              22

            
	 	
              5.2

            	
              Financial
                Statements

            	
              22

            

    

    

     

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

    

     

    

    
      	 	
              5.3

            	
              No
                Material Adverse
                Effect

            	
              22

            
	 	
              5.4

            	
              Title
                to Properties; Possession Under
                Leases

            	
              23

            
	 	
              5.5

            	
              Ownership
                of Subsidiaries

            	
              23

            
	 	
              5.6

            	
              Litigation;
                Compliance with
                Laws

            	
              23

            
	 	
              5.7

            	
              Agreements

            	
              24

            
	 	
              5.8

            	
              Federal
                Reserve
                Regulations

            	
              24

            
	 	
              5.9

            	
              Investment
                Company Act; Public Utility
                Holding Company Act

            	
              24

            
	 	
              5.10

            	
              Use
                of Proceeds

            	
              24

            
	 	
              5.11

            	
              Tax
                Returns

            	
              24

            
	 	
              5.12

            	
              No
                Material
                Misstatements

            	
              25

            
	 	
              5.13

            	
              Employee
                Benefit
                Plans

            	
              25

            
	 	
              5.14

            	
              Insurance

            	
              25

            
	 	 	 	 
	
              SECTION
                6 EVENTS OF DEFAULT AND RIGHTS AND
                REMEDIES

            	
              25

            
	 	 	 	 
	 	
              6.1

            	
              Event
                of Default

            	
              25

            
	 	
              6.2

            	
              Suspension
                of the Term Loan
                Commitment

            	
              27

            
	 	
              6.3

            	
              Acceleration

            	
              27

            
	 	
              6.4

            	
              Rights
                of Collection

            	
              28

            
	 	
              6.5

            	
              Consents

            	
              28

            
	 	
              6.6

            	
              Set
                Off and Sharing of
                Payments

            	
              28

            
	 	
              6.7

            	
              Application
                of
                Payments

            	
              28

            
	 	
              6.8

            	
              Adjustments

            	
              29

            
	 	 	 	 
	
              SECTION
                7 CONDITIONS TO THE TERM
                LOAN

            	
              29

            
	 	 	 	 
	 	
              7.1

            	
              Conditions
                to the Term
                Loan

            	
              29

            
	 	
              7.2

            	
              Other
                Conditions to the Term
                Loan

            	
              31

            
	 	 	 	 
	
              SECTION
                8 ASSIGNMENT AND PARTICIPATION; AGENCY
                PROVISIONS

            	
              31

            
	 	 	 	 
	 	
              8.1

            	
              Assignments
                and Participations in Loans and
                Notes

            	
              31

            
	 	
              8.2

            	
              Agents

            	
              35

            
	 	
              8.3

            	
              Amendments,
                Consents and Waivers for
                Certain Actions

            	
              38

            
	 	
              8.4

            	
              Disbursement
                of
                Funds

            	
              39

            
	 	
              8.5

            	
              Disbursements
                of Advances;
                Payments

            	
              39

            
	 	 	 	 
	
              SECTION
                9 MISCELLANEOUS

            	
              40

            
	 	 	 	 
	 	
              9.1

            	
              Indemnities

            	
              40

            
	 	
              9.2

            	
              Amendments
                and
                Waivers

            	
              41

            
	 	
              9.3

            	
              Notices

            	
              41

            
	 	
              9.4

            	
              Failure
                or Indulgence Not Waiver;
                Remedies Cumulative

            	
              42

            
	 	
              9.5

            	
              Marshaling;
                Payments Set
                Aside

            	
              42

            
	 	
              9.6

            	
              Severability

            	
              42

            
	 	
              9.7

            	
              The
                Lenders’ Obligations Several;
                Independent Nature of the Lenders’ Rights

            	
              42

            
	 	
              9.8

            	
              Headings

            	
              42

            
	 	
              9.9

            	
              Applicable
                Law

            	
              43

            
	 	
              9.10

            	
              Successors
                and
                Assigns

            	
              43

            

    

     

     

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

    
 

    
      	 	
              9.11

            	
              No
                Fiduciary
                Relationship

            	
              43

            
	 	
              9.12

            	
              Construction

            	
              43

            
	 	
              9.13

            	
              Confidentiality

            	
              43

            
	 	
              9.14

            	
              Consent
                to Jurisdiction and Service
                of Process

            	
              44

            
	 	
              9.15

            	
              Waiver
                of Jury Trial

            	
              44

            
	 	
              9.16

            	
              Survival
                of Warranties and Certain
                Agreements

            	
              45

            
	 	
              9.17

            	
              Entire
                Agreement

            	
              45

            
	 	
              9.18

            	
              Counterparts;
                Effectiveness

            	
              45

            
	 	
              9.19

            	
              Patriot
                Act

            	
              45

            
	 	 	 	 
	
              SECTION
                10 DEFINITIONS

            	
              46

            
	 	 	 	 
	 	
              10.1

            	
              Certain
                Defined
                Terms

            	
              46

            
	 	
              10.2

            	
              Other
                Definitional
                Provisions

            	
              56

            

    

    

     

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

    

    SCHEDULES

    

    
      	
              Schedule
                3.7

            	
              Existing
                Guarantees

            
	
              Schedule
                10.1(A)

            	
              Lender
                Commitments and Commitment
                Percentages

            

    

    

    EXHIBITS

    

    
      	
              Exhibit
                1.3

            	
              Form
                of Notice of Borrowing/Conversion/Continuation

            
	
              Exhibit
                4.2(C)

            	
              Form
                of Compliance Certificate

            
	
              Exhibit
                10.1(A)

            	
              Form
                of Assignment and Assumption

            
	
              Exhibit
                10.1(B)

            	
              Form
                of Term Loan Note

            

    

    

     

     

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

     

     

    INDEX
      OF
      DEFINED TERMS

    

    

    
      	
              Defined
                Term

            	
              Defined
                in Section

            
	 	 
	
              Adjustment
                Date

            	
              §10.1

            
	
              Administrative
                Agent

            	
              §10.1

            
	
              Administrative
                Questionnaire

            	
              §10.1

            
	
              Affected
                Lender

            	
              §1.12

            
	
              Affiliate

            	
              §10.1

            
	
              Agent(s)

            	
              §10.1

            
	
              Agreement

            	
              §10.1

            
	
              Applicable
                Law

            	
              §10.1

            
	
              Approved
                Fund

            	
              §10.1

            
	
              Asset
                Exchange

            	
              §10.1

            
	
              Assignment
                and Assumption

            	
              §10.1

            
	
              Availability
                Period

            	
              §10.1

            
	
              Bankruptcy
                Code

            	
              §10.1

            
	
              Base
                Rate

            	
              §10.1

            
	
              Base
                Rate Loans

            	
              §10.1

            
	
              Benefited
                Lender

            	
              §6.9

            
	
              Board

            	
              §10.1

            
	
              Borrower

            	
              Preamble

            
	
              Borrowing
                Approvals

            	
              §5.1(B)

            
	
              Breakage
                Fee

            	
              §1.4(C)

            
	
              Budget

            	
              §10.1

            
	
              Business
                Day

            	
              §10.1

            
	
              Calculation
                Period

            	
              §10.1

            
	
              Capital
                Lease Obligations

            	
              §10.1

            
	
              Certificate
                of Exemption

            	
              §1.13(B)

            
	
              Change
                in Control

            	
              §10.1

            
	
              Closing
                Date

            	
              §10.1

            
	
              CoBank

            	
              Preamble

            
	
              Communications
                Act

            	
              §10.1

            
	
              Communications
                System

            	
              §10.1

            
	
              Compliance
                Certificate

            	
              §4.2(C)

            
	
              Consolidated
                Net Worth

            	
              §10.1

            
	
              Consolidated
                Tangible Assets

            	
              §10.1

            
	
              Control

            	
              §10.1

            
	
              Default

            	
              §10.1

            
	
              EBITDA

            	
              §10.1

            
	
              Eligible
                Assignee

            	
              §10.1

            
	
              Environmental
                Laws

            	
              §10.1

            
	
              ERISA

            	
              §10.1

            
	
              ERISA
                Affiliate

            	
              §10.1

            
	
              ERISA
                Event

            	
              §10.1

            
	
              Event
                of Default

            	
              §6.1

            
	
              Facility

            	
              §10.1

            

    

     

    
       

       

      
        
          
          

        

        
          v

          
            

          

        

        
          
          

        

      

      
 

       

    

    
      	
              FCC

            	
              §10.1

            
	
              Federal
                Funds Rate

            	
              §10.1

            
	
              Foreign
                Lender

            	
              §1.13(B)

            
	
              Fund

            	
              §10.1

            
	
              Funding
                Date

            	
              §7.2

            
	
              GAAP

            	
              §10.1

            
	
              Governmental
                Approvals

            	
              §10.1

            
	
              Governmental
                Authority

            	
              §10.1

            
	
              Guarantee

            	
              §10.1

            
	
              Guaranty
                Agreement

            	
              §10.1

            
	
              Indebtedness

            	
              §10.1

            
	
              Indemnitees

            	
              §9.1

            
	
              Interest
                Period

            	
              §1.2(C)

            
	
              Investment

            	
              §10.1

            
	
              IRC

            	
              §10.1

            
	
              Lead
                Arranger

            	
              §10.1

            
	
              Lenders

            	
              Preamble

            
	
              LIBOR
                

            	
              §10.1

            
	
              LIBOR
                Loans

            	
              §10.1

            
	
              LIBOR
                Margin

            	
              §10.1

            
	
              Licenses

            	
              §10.1

            
	
              Lien

            	
              §10.1

            
	
              Loan(s)

            	
              §10.1

            
	
              Loan
                Documents

            	
              §10.1

            
	
              Margin
                Regulations

            	
              §10.1

            
	
              Material
                Adverse Effect

            	
              §10.1

            
	
              Material
                Transaction

            	
              §10.1

            
	
              Multi-employer
                Plan

            	
              §10.1

            
	
              Note(s)

            	
              §10.1

            
	
              Notice
                of Borrowing/Conversion/Continuation

            	
              §1.3

            
	
              Obligations

            	
              §10.1

            
	
              Participant

            	
              §8.1(D)

            
	
              Patriot
                Act

            	
              §5.15

            
	
              PBGC

            	
              §10.1

            
	
              PCS
                System

            	
              §10.1

            
	
              PCS

            	
              §10.1

            
	
              Pension
                Plan

            	
              §10.1

            
	
              Person

            	
              §10.1

            
	
              Plan

            	
              §10.1

            
	
              Principal
                Subsidiary

            	
              §10.1

            
	
              Pro
                Rata Share

            	
              §10.1

            
	
              PUC

            	
              §10.1

            
	
              Register

            	
              §8.1(C)

            
	
              Regulation
                D

            	
              §10.1

            
	
              Regulation
                T

            	
              §10.1

            
	
              Regulation
                U

            	
              §10.1

            
	
              Regulation
                X

            	
              §10.1

            
	
              Related
                Parties

            	
              §10.1

            

    

     

    
       

      
        
          
          

        

        
          vi

          
            

          

        

        
          
          

        

      

       

      
 

    

    
      	
              Release

            	
              §10.1

            
	
              Replacement
                Lender

            	
              §1.12(1)

            
	
              Reportable
                Event

            	
              §10.1

            
	
              Representatives

            	
              §8.2(E)

            
	
              Requisite
                Lenders

            	
              §10.1

            
	
              Restricted
                Payment

            	
              §10.1

            
	
              SEC

            	
              §4.2(E)

            
	
              Securitization
                Transaction

            	
              §10.1

            
	
              Security
                Documents

            	
              §10.1

            
	
              Specified
                Substance

            	
              §10.1

            
	
              Statement

            	
              §4.2(B)

            
	
              Subsidiary

            	
              §10.1

            
	
              Swap
                Contract

            	
              §10.1

            
	
              Swap
                Termination Value

            	
              §10.1

            
	
              Tax
                Liabilities

            	
              §1.13(A)

            
	
              Term
                Loan

            	
              §10.1

            
	
              Term
                Loan Commitment

            	
              §10.1

            
	
              Term
                Loan Commitment Fee

            	
              §1.4(A)

            
	
              Term
                Loan Facility

            	
              §10.1

            
	
              Term
                Loan Maturity Date

            	
              §10.1

            
	
              Term
                Loan Note(s)

            	
              §10.1

            
	
              Total
                Indebtedness

            	
              §10.1

            
	
              Total
                Leverage Ratio

            	
              §10.1

            

    

     

     

     

    
      
        
        

      

      
        vii

        
          

        

      

      
        Table
          of Contents 

      

    

     

    
 

    CREDIT
      AGREEMENT

     

    This
      CREDIT
      AGREEMENT
      is
      entered into as of December 6, 2006, among CITIZENS
      COMMUNICATIONS COMPANY,
      a
      Delaware corporation (the “Borrower”),
      COBANK,
      ACB
      (individually, “CoBank”),
      as
      the Administrative Agent, the Lead Arranger and a Lender, and such other Lenders
      as may from time to time become a party to this Agreement (together with their
      respective successors and assigns, including any Eligible Assignee (as defined
      herein), collectively, the “Lenders”).
      Capitalized terms used and not otherwise defined herein shall have the meanings
      given to them in Subsection 10.1.

     

    R
      E C
      I T A L S:

    

    WHEREAS,
      the Borrower desires that the Lenders extend to the Borrower a term loan
      facility, the proceeds of which are to be available to refinance a portion
      of
      the Borrower’s existing outstanding Indebtedness; and

     

    NOW,
      THEREFORE, in consideration of the premises and the agreements, provisions
      and
      covenants herein contained, and for other good and valuable consideration,
      the
      receipt and adequacy of which are hereby acknowledged, the parties hereto agree
      as follows:

     

    SECTION
      1

     

    AMOUNTS
      AND TERMS OF TERM
      LOAN
      FACILITY

     

    1.1 Loan.
      Subject
      to the terms and conditions of this Agreement and in reliance upon the
      representations, warranties and covenants of the Borrower contained herein
      and
      in the other Loan Documents:

     

    (A) Term
      Loan Facility.
      Each
      Lender, severally and not jointly, agrees to lend to the Borrower, in a single
      advance to be made during the Availability Period, its Pro Rata Share of the
      Term Loan Commitment; provided
      all
      conditions precedent set forth in Subsections
      7.1
      and
7.2
      are
      satisfied or waived by the Administrative Agent as provided herein. Amounts
      borrowed under this Subsection
      1.1(A)
      that are
      repaid or prepaid may not be reborrowed.

     

    (B) Notes.
      To the
      extent requested by a Lender, the Borrower shall execute and deliver to such
      Lender a Term Loan Note in the principal amount of such Lender’s Pro Rata Share
      of the Term Loan Commitment.

     

    (C) Advances.
      The
      advance under the Term Loan will be made available by wire transfer of
      immediately available funds. The wire transfer will be made to such account
      or
      accounts as may be authorized by the Borrower.

     

    1.2 Interest.

     

    (A) Interest
      Options.

     

    (i) From
      the
      date the Term Loan is made, based upon the election of the Borrower, at such
      time and from time to time thereafter (as provided in Subsection 1.3
      and
      subject to the conditions set forth in such Subsection and Subsection 1.2(G)),
      the
      Term Loan shall accrue interest as follows:

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        Table
          of Contents 

        Credit
          Agreement/Citizens Communications Company

      

    

     

    (1) as
      a Base
      Rate Loan,
      at
      the
      sum of the Base Rate plus
      0.25%;
      or

     

    (2) as
      a
      LIBOR Loan, for the applicable Interest Period, at the sum of LIBOR plus
      the
      LIBOR Margin applicable to such Loan from time to time as provided in
Subsection
      1.2(B).

     

    (ii) Except
      as
      otherwise provided in Subsection
      1.2(E),
      interest on all Obligations other than interest payments required pursuant
      to
Subsection
      1.2(A)(i)
      above
      not paid when due will accrue at the Base Rate plus
      0.25%
      per annum.

     

    (B) Applicable
      Margins.
      Initially, and continuing through the day immediately preceding the first
      Adjustment Date, the applicable LIBOR Margin shall be 1.375% per annum.
      Commencing on such Adjustment Date, the applicable LIBOR Margin shall be for
      each Calculation Period the applicable per annum percentage set forth in the
      pricing table below opposite the applicable Total Leverage Ratio of the
      Borrower, determined on a consolidated basis for the Borrower and its
      Subsidiaries; provided,
      that
      effective (i) upon the occurrence of an Event of Default and notice from the
      Administrative Agent or Requisite Lenders and until such Event of Default is
      cured or waived or (ii) in the event that the Administrative Agent shall not
      receive the financial statements and Compliance Certificate required pursuant
      to
Subsections
      4.2(A),
      4.2(B)
      and
4.2(C)
      when
      due, from such due date and until the Business Day following the Administrative
      Agent’s receipt of such overdue financial statements and Compliance Certificate,
      the applicable LIBOR Rate Margin shall be 1.625% per annum.

     

     

    PRICING
      TABLE

    

    
      	
              Total
                Leverage Ratio

            	
              LIBOR
                Margin

            
	
              ≥
                4.00:1.0

            	
              1.625%

            
	
              <
                4.00:1.0

            	
              1.375%

            

    

    

    (C) Interest
      Periods.
      Each
      LIBOR Loan may be obtained for a one, two, three or six month period, or such
      longer period as may be agreed by all of the Lenders (each such period being
      an
“Interest
      Period”).
      With
      respect to all LIBOR Loans:

     

    (i) the
      Interest Period will commence on the date that the LIBOR Loan is made or the
      date on which any portion of any Base Rate Loan is converted into a LIBOR Loan,
      or, in the case of immediately successive Interest Periods, each successive
      Interest Period shall commence on the day on which the immediately preceding
      Interest Period expires;

     

    (ii) if
      the
      Interest Period would otherwise expire on a day that is not a Business Day,
      then
      it will expire on the next Business Day; provided,
      that if
      any Interest Period would otherwise expire on a day that is not a Business
      Day
      and such day is a day of a calendar month after which no further Business Day
      occurs in such month, such Interest Period shall expire on the Business Day
      next
      preceding such day;

    
 

    
      
        
        

      

      
        2

        
          

        

      

      
        Table
          of Contents 

        Credit
          Agreement/Citizens Communications Company

      

    

     

    

    (iii) any
      Interest Period that begins on the last Business Day of a calendar month or
      on a
      day for which there is no numerically corresponding day in the last calendar
      month in such Interest Period shall end on the last Business Day of the last
      calendar month in such Interest Period; and

     

    (iv) no
      Interest Period shall be selected under the Term Loan Facility if, in order
      to
      make scheduled repayments of such Term Loan required pursuant to Subsection
      1.6(B),
      repayment of all or any portion of the LIBOR Loan prior to the expiration of
      such Interest Period would be necessary.

     

    (D) Calculation
      and Payment.
      Interest
      on Base Rate Loans shall be calculated on the basis of a 365-6-day year for
      the
      actual number of days elapsed. Interest on LIBOR Loans and all other
      Obligations, including amounts due under Subsection
      1.4,
      shall
      be calculated on the basis of a 360-day year for the actual number of days
      elapsed. The date of funding or conversion to a Base Rate Loan and the first
      day
      of an Interest Period with respect to a LIBOR Loan shall be included in the
      calculation of interest. The date of payment of any Loan and the last day of
      an
      Interest Period with respect to a LIBOR Loan shall be excluded from the
      calculation of interest; provided,
      if a
      Loan is repaid on the same day that it is made, one day’s interest shall be
      charged.

     

    Interest
      accruing on Base Rate Loans is payable in arrears on each of the following
      dates
      or events: (i) the last day of each calendar quarter; (ii) the prepayment of
      such Loan (or portion thereof), to the extent accrued on the principal prepaid;
      and (iii) the Term Loan Maturity Date, whether by acceleration or otherwise,
      with respect to the principal to be repaid. Interest accruing on each LIBOR
      Loan
      is payable in arrears on each of the following dates or events: (i) the last
      day
      of each applicable Interest Period; (ii) if the Interest Period is longer than
      three months, on each three-month anniversary of the commencement date of such
      Interest Period; (iii) the prepayment of such Loan (or portion thereof), to
      the
      extent accrued on the principal prepaid; and (iv) the Term Loan Maturity Date,
      whether by acceleration or otherwise, with respect to the principal to be
      repaid.

     

    (E) Default
      Rate of Interest.
      At the
      election of the Administrative Agent or the Requisite Lenders, after the
      occurrence of an Event of Default pursuant to either Subsection
      6.1(A)
      or
6.1(C)
      and for
      so long as it continues, all Loans and other Obligations shall bear interest
      at
      rates that are 2.00% in excess of the rates otherwise in effect (after giving
      effect to the proviso in the second sentence of Subsection
      1.2(B))
      with
      respect to such Loans and other Obligations.

     

    (F) Excess
      Interest.
      Notwithstanding anything to the contrary set forth herein, the aggregate
      interest, fees and other amounts required to be paid by the Borrower to the
      Lenders or any Lender hereunder are hereby expressly limited so that in no
      contingency or event whatsoever, whether by reason of acceleration or maturity
      of the Indebtedness evidenced hereby or otherwise, shall the amount paid or
      agreed to be paid to the Lenders or any Lender for the use or the forbearance
      of
      the Indebtedness or Obligations evidenced hereby exceed the maximum permissible
      under Applicable Law. If under or from any circumstances whatsoever, fulfillment
      of any provision hereof or of any of the other Loan Documents at the time of
      performance of such provision shall be due, shall involve exceeding the limit
      of
      such validity prescribed by Applicable Law then the obligation to be fulfilled
      shall automatically be reduced to the limit of such validity and if under or
      from circumstances whatsoever the Lenders or any Lender should ever receive
      as
      interest any amount which would exceed the highest lawful rate, the amount
      of
      such interest that is excessive shall be applied to the reduction of the
      principal balance of the Obligations evidenced hereby and not to the payment
      of
      interest. Additionally, should the method used for calculating interest (i.e.,
      using a 360-day year) be unlawful, such calculation method shall be
      automatically changed to a 365/6-day year or such other lawful calculation
      method as is reasonably acceptable to the Administrative Agent. This provision
      shall control every other provision of this Agreement and all provisions of
      every other Loan Document.

     

     

    
      
        
        

      

      
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    (G) Selection,
      Conversion or Continuation of Loans; LIBOR Availability.
      The
      Borrower shall have the option to (i) select all or any part of a new borrowing
      under the Term Loan Facility to be a Base Rate Loan or a LIBOR Loan, in the
      case
      of a Base Rate Loan in a principal amount equal to at least $250,000 and any
      whole multiple of $100,000 in excess thereof and in the case of a LIBOR Loan
      in
      a principal amount equal to $1,000,000 or any whole multiple of $500,000 in
      excess thereof, (ii) convert at any time all or any portion of any Base
      Rate Loan(s) in a principal amount equal to $1,000,000 or any whole multiple
      of
      $500,000 in excess thereof into a LIBOR Loan, (iii) upon the expiration of
      its Interest Period, convert all or any part of any LIBOR Loan into a Base
      Rate
      Loan, and (iv) upon the expiration of its Interest Period, continue any
      LIBOR Loan in a principal amount of $1,000,000 or any whole multiple of $500,000
      in excess thereof into one or more LIBOR Loans, for such new Interest Period(s)
      as selected by the Borrower. During any period in which any Event of Default
      is
      continuing, as the Interest Periods for LIBOR Loans then in effect expire,
      such
      Loans shall be converted into a Base Rate Loan and the LIBOR option will not
      be
      available to the Borrower until all Events of Default are cured or waived.
      In
      the event the Borrower fails to elect a LIBOR Loan upon any advance hereunder
      or
      upon the termination of any Interest Period, the Borrower shall be deemed to
      have elected to have such amount constitute a Base Rate Loan. Notwithstanding
      the foregoing, there may be no more than an aggregate of five LIBOR or Base
      Rate
      Loans outstanding under the Term Loan Facility at any one time.

     

    1.3 Notice
      of Borrowing, Conversion or Continuation
      of Loans.
      Whenever
      the Borrower desires to request the Term Loan pursuant to Subsection 1.1
      or to
      convert or continue Loans pursuant to Subsection 1.2(G),
      the
      Borrower shall give the Administrative Agent irrevocable prior written notice
      in
      the form attached hereto as Exhibit
      1.3
      (a
“Notice
      of Borrowing/Conversion/Continuation”),
      (i)
      if requesting a borrowing of, conversion to or continuation of a Base Rate
      Loan
      (or any portion thereof), not later than 11:00 a.m. (Denver, Colorado time),
      one
      Business Day before the proposed borrowing, conversion or continuation is to
      be
      effective or (ii), if requesting a borrowing of, a conversion to or a
      continuation of a LIBOR Loan, not later than 11:00 a.m. (Denver, Colorado time),
      three Business Days before the proposed borrowing, conversion or continuation
      is
      to be effective. Each Notice of Borrowing/Conversion/Continuation shall specify
      (a) the Loan (or portion thereof) to be advanced, converted or continued and,
      with respect to any LIBOR Loan to be converted or continued, the last day of
      the
      current Interest Period therefor, (b) the effective date of such borrowing,
      conversion or continuation (which shall be a Business Day), (c) the
      principal amount of such Loan to be borrowed, converted or continued and (d)
      the
      Interest Period to be applicable to any new LIBOR Loan. In the event the
      Borrower fails to elect a LIBOR Loan upon any advance hereunder or upon the
      termination of any Interest Period, the Borrower shall be deemed to have elected
      to have such amount constitute a portion of the Base Rate Loan under the Term
      Loan Facility.

     

     

    
      
        
        

      

      
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    1.4 Fees
      and Expenses.

     

    (A) Loan
      Commitment Fees.
      From
      and including the Closing Date through and excluding the last day of the
      Availability Period, the Borrower shall pay to the Administrative Agent, for
      the
      benefit of all the Lenders (based upon their respective Pro Rata Shares of
      the
      Term Loan Commitment), a fee (the “Term
      Loan Commitment Fee”)
      in an
      amount equal to the Term Loan Commitment multiplied by
      0.25%
      per annum, calculated on the basis of a 360-day year for the actual number
      of
      days elapsed. Such fees are to be paid in arrears on the last day of the of
      the
      Availability Period.

     

    (B) Certain
      Other Fees.
      The
      Borrower shall pay the fees specified in that certain letter agreement, dated
      October 23, 2006, between the Borrower and the Lead Arranger, at such times
      and
      to such entities as specified in such letter agreement.

     

    (C) Breakage
      Fees.
      Upon
      any repayment or payment of a LIBOR Loan on any day that is not the last day
      of
      the Interest Period applicable thereto (regardless of the source of such
      repayment or prepayment and whether voluntary, mandatory, by acceleration or
      otherwise), the Borrower shall pay the Administrative Agent, for the benefit
      of
      all affected Lenders, an amount (the “Breakage
      Fee”)
      equal
      to the amount of any losses, reasonable expenses and liabilities (including
      any
      loss (including interest paid) sustained by each such affected Lender in
      connection with the re-employment of such funds) that each such affected Lender
      may sustain as a result of the payment of such LIBOR Loan on such day. For
      purposes of calculating amounts payable by the Borrower to the Lenders under
      this Subsection
      1.4(C),
      each
      LIBOR Loan made by a Lender (and each related reserve, special deposit or
      similar requirement) shall be conclusively deemed to have been funded at the
      LIBOR rate for such LIBOR Loan by a matching deposit or other borrowing in
      the
      interbank eurocurrency market for a comparable amount and for a comparable
      period, whether or not such LIBOR Loan is in fact so funded. In addition, upon
      any repayment or prepayment of a LIBOR Loan on any day that is not the last
      day
      of the Interest Period applicable thereto (regardless of the source of such
      repayment or prepayment and whether voluntary, mandatory, by acceleration or
      otherwise), the Borrower shall pay the Administrative Agent, individually and
      not for the benefit of the Lenders, an administrative fee of $300.

     

    (D) Expenses
      and Attorneys Fees.
      In
      addition to fees due under Subsections
      1.4 (A)
      and 1.4(B),
      the
      Borrower agrees to pay promptly all reasonable fees, costs and expenses
      (including those of attorneys) incurred by the Administrative Agent or the
      Lead
      Arranger in connection with (i) the syndication of the credit facility contained
      herein and the preparation and negotiation of this Agreement and the other
      Loan
      Documents and (ii) in the case of the Administrative Agent only, the
      continued administration of the Loan Documents, including any such reasonable
      fees, costs and expenses incurred in connection with any amendments,
      supplements, modifications and waivers of any Loan Document. In addition to
      fees
      due under Subsections 1.4(A)
      and
1.4(B),
      the
      Borrower agrees to pay promptly all reasonable out-of-pocket fees, costs and
      expenses (including those of attorneys, provided that the Borrower shall only
      be
      obligated to reimburse for one set of attorneys for the Administrative Agent
      and
      the Lenders unless the Administrative Agent or any Lender reasonably determines
      that due to a conflict or otherwise its interests are better represented by
      separate counsel) incurred by each of the Administrative Agent and
      the
      Lenders  in
      connection with any Default or Event of Default and any enforcement of
      collection proceeding resulting therefrom or any workout or restructuring of
      any
      of the transactions hereunder or contemplated thereby or any action to enforce
      any Loan Document or to collect any payments due from the Borrower. All fees,
      costs and expenses for which the Borrower is responsible under this Subsection 1.4(D)
      shall be
      deemed part of the Obligations when incurred.

     

     

    
      
        
        

      

      
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    1.5 Payments.
      All
      payments by the Borrower of the Obligations shall be made in same day funds
      and
      delivered to the Administrative Agent, for the benefit of itself and the
      Lenders, as applicable, by wire transfer to the following account or such other
      place as the Administrative Agent may from time to time designate in accordance
      with Subsection
      9.3:

     

    CoBank,
      ACB

    Greenwood
      Village, Colorado

    ABA
      Number 3070-8875-4

    Reference:
      CoBank for the benefit of Citizens Communications Company

     

    The
      Borrower shall receive credit on the day of receipt for funds received by the
      Administrative Agent by 11:00 a.m. (Denver, Colorado time) on any Business
      Day. Funds received on any Business Day after such time shall be deemed to
      have
      been paid on the next Business Day. Whenever any payment to be made hereunder
      shall be stated to be due on a day that is not a Business Day, the payment
      shall
      be due on the next succeeding Business Day and such extension of time shall
      be
      included in the computation of the amount of interest and fees due
      hereunder.

     

    To
      the
      extent the Borrower or any other party or Person makes a payment or payments
      to
      the Administrative Agent for the ratable benefit of the Lenders or for the
      benefit of the Administrative Agent in its individual capacity, which payments
      or any part thereof are subsequently invalidated, declared to be fraudulent
      or
      preferential, set aside and/or required to be repaid to a trustee, receiver
      or
      any other party under any bankruptcy law, state or federal law, common law
      or
      equitable cause, or any combination of the foregoing (whether by demand,
      litigation, settlement or otherwise), then, to the extent of such payment or
      proceeds repaid, the Obligations or part thereof intended to be satisfied shall
      be revived and continued in full force and effect as if such payment or proceeds
      had not been received by the Administrative Agent.

     

    Each
      payment received by the Administrative Agent under this Agreement or any Note
      for account of any Lender shall be remitted by the Administrative Agent to
      such
      Lender promptly after the Administrative Agent’s receipt thereof, and such
      remittance shall be made in immediately available funds for the account of
      such
      Lender for the Loans or other obligation in respect of which such payment is
      made.

     

     

    
      
        
        

      

      
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    1.6 Termination
      of the Term Loan Commitment and
      Repayments of Loans.

     

    (A) Termination
      of the Term Loan Commitment.
      The
      Term
      Loan Commitment shall be permanently reduced and terminated in full on the
      last
      day of the Availability Period.

     

    (B) Repayments
      of the Term Loan Facility.
      In
      addition to any prepayment made pursuant to Subsection
      1.7
      and
      subject to adjustment pursuant to Subsection
      1.12,
      the
      Borrower shall repay the aggregate outstanding principal balance of the Term
      Loan in quarterly payments in the following amounts and on each of the following
      repayment dates as set forth below:

     

    TERM
      LOAN - REPAYMENT TABLE

    

    
      	
              Quarterly
                Repayment

              Date

            	
              Quarterly
                Repayment Amount

            
	
              March
                31, 2007

            	
              $375,000

            
	
              June
                30, 2007

            	
              $375,000

            
	
              September
                30, 2007

            	
              $375,000

            
	
              December
                31, 2007

            	
              $375,000

            
	
              March
                31, 2008

            	
              $375,000

            
	
              June
                30, 2008

            	
              $375,000

            
	
              September
                30, 2008

            	
              $375,000

            
	
              December
                31, 2008

            	
              $375,000

            
	
              March
                31, 2009

            	
              $375,000

            
	
              June
                30, 2009

            	
              $375,000

            
	
              September
                30, 2009

            	
              $375,000

            
	
              December
                31, 2009

            	
              $375,000

            
	
              March
                31, 2010

            	
              $375,000

            
	
              June
                30, 2010

            	
              $375,000

            
	
              September
                30, 2010

            	
              $375,000

            
	
              December
                31, 2010

            	
              $375,000

            
	
              March
                31, 2011

            	
              $375,000

            
	
              June
                30, 2011

            	
              $375,000

            
	
              September
                30, 2011

            	
              $375,000

            

    

     

     

    
      
        
        

      

      
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               Quarterly
                Repayment

              Date

            	
               Quarterly
                Repayment

              Amount

            
	
              December
                31, 2011

            	
              $375,000

            
	
              March
                31, 2012

            	
              $375,000

            
	
              June
                30, 2012

            	
              $375,000

            
	
              September
                30, 2012

            	
              $70,875,000

            
	
              December
                31, 2012

            	
              $70,875,000

            

    

    

    ;
      provided,
      however,
      that
      any outstanding principal balance of the Term Loan not sooner due and payable
      shall become due and payable on the Term Loan Maturity Date.

     

    All
      repayments of the Term Loan pursuant to this Subsection
      1.6(B)
      shall be
      applied in accordance with Subsection
      1.8,
      and
      shall be accompanied by accrued interest on the amount repaid and any applicable
      Breakage Fees and any other fees required pursuant to Subsection
      1.4(C).

     

    1.7 Voluntary
      Prepayments.
      Subject
      to the provisions of Subsection
      1.8,
      at any
      time, with one day’s notice, the Borrower may prepay the Base Rate Loans, in
      whole or in part, without penalty. Subject to the provisions of Subsection 1.8,
      payment
      of the Breakage Fees and any other fees required pursuant to Subsection
      1.4(C)
      and the
      notice requirement in the following sentence, at any time the Borrower may
      prepay any LIBOR Loan, in whole or in part. Notice of any prepayment of a LIBOR
      Loan shall be given not later than 11:00 a.m. (Denver, Colorado time) on
      the third Business Day preceding the date of prepayment. All prepayments shall
      be in a minimum amount of at least $1,000,000, or any whole multiple of $500,000
      in excess thereof, shall be applied as to each Lender based upon its Pro Rata
      Share, and shall be paid and applied in accordance with Subsection
      1.8.
      All
      prepayment notices shall be irrevocable. All prepayments shall be accompanied
      by
      accrued interest on the amount prepaid and the Breakage Fees and any other
      fees
      required pursuant to Subsection
      1.4(C).

     

    1.8 Application
      of Prepayments and
      Repayments; Payment of Breakage Fees, Etc.
      All
      prepayments and repayments made pursuant to Subsections
      1.6
      and
1.7
      shall
      first be applied to such Base Rate Loans and such LIBOR Loans as the Borrower
      shall direct in writing and, in the absence of such direction, shall first
      be
      applied to such Base Rate Loans, and then after payment in full of all Base
      Rate
      Loans to such LIBOR Loans, as in each case the Administrative Agent shall
      select. All prepayments and repayments required or permitted hereunder shall
      be
      accompanied by payment of all applicable Breakage Fees and other fees required
      pursuant to Subsection
      1.4(C)
      and all
      accrued interest on the amount prepaid or repaid. All prepayments applied to
      the
      Term Loan shall be applied to principal installments in the inverse order of
      maturity.

     

     

    
      
        
        

      

      
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    1.9 Loan
      Accounts.
      The
      Administrative Agent will maintain loan account records for (i) all Loans,
      interest charges and payments thereof, (ii) the charging and payment of all
      fees, costs and expenses and (iii) all other debits and credits pursuant to
      this Agreement. The balance in the loan accounts shall be presumptive evidence
      of the amounts due and owing to the Lenders, absent manifest error, provided
      that any
      failure by the Administrative Agent to maintain such records shall not limit
      or
      affect the Borrower’s obligation to pay.

     

    1.10 Changes
      in LIBOR Rate
      Availability.

     

    (A) In
      the
      event that, prior to the first day of any Interest Period (a) the Administrative
      Agent shall have determined that, by reason of circumstances generally affecting
      the relevant market, adequate and reasonable means do not exist for ascertaining
      LIBOR for such Interest Period, or (b) the Requisite Lenders determine (and
      notify the Administrative Agent) that LIBOR applicable pursuant to Subsection
      1.2(A)(i)
      for any
      requested Interest Period with respect to a proposed LIBOR Loan under the Term
      Loan Facility does not adequately and fairly reflect the cost to such Lenders
      of
      funding such Loan, the Administrative Agent shall promptly give notice thereof
      to the Borrower and the Lenders. If such notice is given, (i) any LIBOR
      Loans requested to be made on the first day of such Interest Period shall accrue
      interest at the Base Rate, (ii) Loans that were to have been converted on the
      first day of such Interest Period to LIBOR Loans shall be continued as Base
      Rate
      Loans, and (iii) any outstanding LIBOR Loans shall be converted, on the last
      day
      of the Interest Period applicable thereto, to Base Rate Loans. Until such notice
      has been withdrawn by the Administrative Agent, no further LIBOR Loans shall
      be
      made or construed as such, nor shall the Borrower have the right to convert
      Base
      Rate Loans to LIBOR Loans.

     

    (B) If
      the
      introduction of, or any change in, any Applicable Law or any change in the
      interpretation or administration thereof by any Governmental Authority, central
      bank or comparable agency charged with the interpretation or administration
      thereof, or compliance by any Lender with any request or directive (whether
      or
      not having the force of law) of any such Governmental Authority, central bank
      or
      comparable agency, shall make it unlawful or impossible for one or more of
      the
      Lenders to honor its obligations hereunder to make or maintain any LIBOR Loan,
      such Lender shall promptly give notice thereof to the Administrative Agent,
      and
      the Administrative Agent shall promptly give notice thereof to the Borrower
      and
      all other Lenders. Thereafter, until the Administrative Agent notifies the
      Borrower that such circumstances no longer exist, (i) the obligations of such
      Lender or Lenders to make LIBOR Loans and the right of the Borrower to convert
      any Loan or continue any Loan as a LIBOR Loan shall be suspended with respect
      to
      the affected Lenders and (ii) if any Lender may not lawfully continue to
      maintain a LIBOR Loan to the end of the then current Interest Period applicable
      thereto, the portion of the Loan held by the affected Lenders shall immediately
      be converted to a Base Rate Loan.

     

    1.11 Capital
      Adequacy and Other Adjustments.

     

    (A) If
      the
      introduction of or the interpretation of any law, rule, or regulation would
      increase the reserve requirement or otherwise increase the cost to any Lender
      of
      making or maintaining a LIBOR Loan in an amount deemed by such Lender to be
      material, then such Lender shall submit a certificate to the Borrower setting
      forth the amount and demonstrating the calculation of such increased cost to
      such Lender. The Borrower shall be obligated to pay the amount of such increased
      cost to the Administrative Agent for the benefit of the affected Lender within
      15 days after receipt of such certificate. Such certificate shall, absent
      manifest error, be final, conclusive and binding for all purposes. There is
      no
      limitation on the number of times such a certificate may be
      submitted.

     

     

    
      
        
        

      

      
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    (B) In
      the
      event that any Lender shall have determined that the adoption after the date
      hereof of any law, treaty, governmental (or quasi-governmental) rule,
      regulation, guideline or order regarding capital adequacy, reserve requirements
      or similar requirements or compliance by any Lender or any corporation
      controlling such Lender with any request or directive regarding capital
      adequacy, reserve requirements or similar requirements (whether or not having
      the force of law and whether or not failure to comply therewith would be
      unlawful) from any central bank or governmental agency or body having
      jurisdiction does or shall have the effect of increasing the amount of capital,
      reserves or other funds required to be maintained by such Lender or any
      corporation controlling such Lender and thereby reducing the rate of return
      on
      such Lender’s or such corporation’s capital as a consequence of its obligations
      hereunder in an amount deemed by such Lender to be material, then the Borrower
      shall be obligated to, from time to time within 15 days after notice and demand
      from such Lender (together with the certificate referred to in the next sentence
      and with a copy to the Administrative Agent), pay to the Administrative Agent,
      for the account of such Lender, additional amounts sufficient to compensate
      such
      Lender for such reduction. A certificate as to the amount of such cost and
      showing the basis of the computation of such cost submitted by such Lender
      to
      the Borrower and the Administrative Agent shall, absent manifest error, be
      final, conclusive and binding for all purposes. There is no limitation on the
      number of times such a certificate may be submitted.

     

    (C) Failure
      or delay on the part of any Lender to demand compensation for any increased
      costs or reduction in amounts received or receivable or reduction in return
      on
      capital shall not constitute a waiver of such Lender’s right to demand such
      compensation; provided
      that the
      Borrower shall not be under any obligation to compensate any Lender under
Subsections
      1.11(A)
      or
1.11(B)
      with
      respect to increased costs or reductions with respect to any period prior to
      the
      date that is 120 days prior to such request if such Lender knew or could
      reasonably have been expected to know of the circumstances giving rise to such
      increased costs or reductions and of the fact that such circumstances would
      result in a claim for increased compensation by reason of such increased costs
      or reductions; provided further
      that the
      foregoing limitation shall not apply to any increased costs or reductions
      arising out of the retroactive application of any change in any law, rule,
      regulation, treaty or directive or in the interpretation thereof within such
      120-day period. A Lender shall seek compensation for any increased costs or
      reduction under Subsections
      1.11(A)
      or
1.11(B)
      only if
      such Lender is also seeking such increased costs or reductions from similarly
      situated borrowers of such Lender.

     

    (D) If
      (i) any Lender shall request compensation under this Subsection
      1.11,
      (ii) any Lender delivers a notice described in Subsection
      1.14
      or
      (iii) the Borrower is required to pay any additional amount to any Lender
      or any Governmental Authority on account of any Lender, pursuant to Subsection
      1.13,
      then
      such Lender shall use reasonable efforts (which shall not require such Lender
      to
      incur an unreimbursed loss or unreimbursed cost or expense or otherwise take
      any
      action inconsistent with its internal policies or legal or regulatory
      restrictions or suffer any disadvantage or burden deemed by it to be
      significant) (x) to file any certificate or document reasonably requested
      in writing by the Borrower or (y) to assign its rights and delegate and
      transfer its obligations hereunder to another of its offices, branches or
      affiliates, if such filing or assignment would reduce its claims for
      compensation under Subsection
      1.11
      or
      enable it to withdraw its notice pursuant to Subsection
      1.14
      or would
      reduce amounts payable pursuant to Subsection
      1.13,
      as the
      case may be, in the future. The Borrower hereby agrees to pay all reasonable
      costs and expenses incurred by any Lender in connection with any such filing
      or
      assignment, delegation and transfer.

     

     

    
      
        
        

      

      
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    1.12 Optional
      Prepayment/Replacement of Lender in
      Respect of Increased Costs.
      Within
      15 days after receipt by the Borrower of written notice and demand from any
      Lender (an “Affected
      Lender”)
      for
      payment of additional costs as provided in Subsections
      1.11
      or
1.14
      or if it
      becomes illegal or impossible for any Lender to continue to fund or to make
      LIBOR Loans pursuant to Subsection
      1.10(B),
      as a
      result of any condition described in either of such Subsections, then, unless
      such Lender has theretofore removed or cured the conditions creating the cause
      for such obligation to pay such additional amounts or for such illegality or
      impossibility, the Borrower may, at its option, notify the Administrative Agent
      and such Affected Lender of its intention to do one of the
      following:

     

    (1) The
      Borrower may obtain, at the Borrower’s expense, a replacement Lender
      (“Replacement
      Lender”)
      for
      such Affected Lender, which Replacement Lender shall be reasonably satisfactory
      to the Administrative Agent. In the event the Borrower obtains a Replacement
      Lender within 120 days following notice of its intention to do so, the Affected
      Lender shall sell and assign its Loans and its obligations under the Term Loan
      Commitment to such Replacement Lender in an amount equal to the sum of the
      principal of and interest accrued to the date of such sale and assignment on
      the
      outstanding Loans of such Affected Lender, provided that the Borrower has
      reimbursed such Affected Lender for its increased costs for which it is entitled
      to reimbursement under this Agreement through the date of such sale and
      assignment; or

     

    (2) The
      Borrower may prepay in full all outstanding Obligations owed to such Affected
      Lender and terminate such Affected Lender’s Pro Rata Share of the Term Loan
      Commitment, in which case the Term Loan Commitment will be permanently reduced
      by the amount of such Pro Rata Share. The Borrower shall, within 120 days
      following notice of its intention to do so, prepay in full all outstanding
      Obligations owed to such Affected Lender (including all applicable Breakage
      Fees
      and such Affected Lender’s increased costs for which it is entitled to
      reimbursement under this Agreement through the date of such prepayment), and
      terminate such Affected Lender’s obligations under the Term Loan Commitment, and
      upon such prepayment each scheduled repayment of the Term Loan pursuant to
      Subsection
      1.6(B)
      shall be
      reduced on a proportional basis.

     

    1.13 Taxes.

     

    (A) No
      Deductions.
      Any and
      all payments or reimbursements made hereunder or under the Notes shall be made
      free and clear of and without deduction for any and all taxes, levies, imposts,
      deductions, charges or withholdings, and all liabilities with respect thereto,
      excluding,
      however,
      any
      tax, levy, impost, deduction, charge or withholding, and all liabilities with
      respect thereto, with respect to any Foreign Lender as defined below, and any
      tax imposed on the revenues, income or net income of a Lender or the
      Administrative Agent by its jurisdiction of incorporation or by the federal,
      state, local or foreign taxing authorities in the jurisdiction in which the
      principal place of business of such Lender or the Administrative Agent is
      located or by any jurisdiction or taxing authority thereof or therein, with
      which such Lender or the Administrative Agent has or had a connection (other
      than a connection arising solely as a result of such Lender or the
      Administrative Agent having executed, delivered or performed its obligations
      or
      received a payment under, or enforced, this Agreement or any other Loan
      Document) (all such non-excluded taxes, levies, imposts, deductions or
      withholdings, and all liabilities with respect thereto, collectively,
      “Tax
      Liabilities”).
      If
      the Borrower shall be required by law to deduct any Tax Liabilities from or
      in
      respect of any sum payable hereunder to any Lender or the Administrative Agent,
      then the sum payable hereunder shall be increased as may be necessary so that,
      after making all required deductions, such Lender or the Administrative Agent
      receives an amount equal to the sum it would have received had no such
      deductions been made; provided,
      however,
      that
      the Borrower shall not be required to increase any such amounts payable to
      any
      Lender or the Administrative Agent with respect to (i) any withholding tax
      that
      is imposed or amounts payable to any Lender or the Administrative Agent at
      the
      time such Lender or Administrative Agent becomes a party to this Agreement
      (or
      designates a new lending office) or (ii) any Tax Liabilities that are
      attributable to such Lender’s or the Administrative Agent’s failure to comply
      with the requirements of Subsections
      1.13(B)
      or
1.13(C).

     

     

    
      
        
        

      

      
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    (B) Foreign
      Lenders.
      Each
      Lender organized under the laws of a jurisdiction outside of the United States
      (“Foreign
      Lender”)
      as to
      which payments made under this Agreement or under the Notes are exempt from
      United States withholding tax or are subject to United States withholding tax
      at
      a reduced rate under an applicable statute or tax treaty shall provide to the
      Borrower and the Administrative Agent promptly upon becoming a Lender under
      this
      Agreement or when such Lender designates a new lending office a properly
      completed and executed United States Internal Revenue Service Form W-8BEN or
      other applicable form, certificate or document prescribed by the Internal
      Revenue Service of the United States certifying as to such Foreign Lender’s
      entitlement to such exemption or reduced rate of withholding with respect to
      payments to be made to such Foreign Lender under this Agreement and under the
      Notes or Form W-8ECI or other applicable form, certificate or document
      prescribed by the Internal Revenue Service of the United States certifying
      that
      payments made to such Foreign Lender are not subject to withholding because
      they
      are effectively connected with the conduct of a trade or business in the United
      States (a “Certificate
      of Exemption”).

     

    If
      a
      Foreign Lender is entitled to an exemption with respect to payments to be made
      to such Foreign Lender under this Agreement or the Notes (or to a reduced rate
      of withholding) and does not provide a Certificate of Exemption to the Borrower
      and the Administrative Agent within the time periods set forth in the preceding
      paragraph, the Borrower shall withhold taxes from payments to such Foreign
      Lender at the applicable statutory rates and the Borrower shall not be required
      to pay any additional amounts as a result of such withholding, provided
      that all
      such withholding shall, to the extent permitted by Applicable Law, cease or
      be
      reduced, as appropriate, upon delivery by such Foreign Lender of a Certificate
      of Exemption to the Borrower and the Administrative Agent.

     

    (C) Non-U.S.
      Withholding Taxes.
      A Lender
      that is entitled to an exemption from or reduction of non-U.S. withholding
      tax
      under the law of the jurisdiction in which the Borrower is located, or any
      treaty to which such jurisdiction is a party, with respect to payments under
      this Agreement or under the Notes shall deliver to the Borrower (with a copy
      to
      the Administrative Agent), at the time or times prescribed by Applicable Law
      or
      reasonably requested by the Borrower, such properly completed and executed
      documentation that such Lender is legally entitled to complete, execute and
      deliver and is prescribed by Applicable Law as will permit such payments to
      be
      made without withholding or at a reduced rate.

    
 

    
      
        
        

      

      
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    If
      a
      Lender is entitled to an exemption with respect to payments to be made to such
      Lender under this Agreement or the Notes (or to a reduced rate of withholding)
      and does not provide such documentation to the Borrower and the Administrative
      Agent within the time periods set forth in the preceding paragraph, the Borrower
      shall withhold taxes from payments to such Lender at the applicable statutory
      rates and the Borrower shall not be required to pay any additional amounts
      as a
      result of such withholding, provided that all such withholding shall, to the
      extent permitted by applicable law, cease or be reduced, as appropriate, upon
      delivery by such Lender of such documentation to the Borrower and the
      Administrative Agent.

     

    (D) Participations.
      Each
      Lender that sells or grants a participation shall (i) withhold or deduct
      from each payment to a Participant the amount of any tax required under
      Applicable Law to be withheld or deducted from such payment and not withheld
      or
      deducted therefrom by the Borrower or the Administrative Agent, (ii) pay any
      tax
      so withheld or deducted by it to the appropriate taxing authority in accordance
      with Applicable Law and (iii) indemnify the Borrower and the Administrative
      Agent for any losses, costs and expenses that either of them may incur as a
      result of any failure to withhold or deduct and pay any tax to the extent the
      amount of such tax and losses, costs and expenses exceeds the amount of tax
      and
      losses, costs and expenses that would have been imposed in the absence of such
      participation.

     

    (E) Refunds.
      If the
      Administrative Agent or a Lender determines that it has received a refund of
      any
      Tax Liabilities as to which it has been indemnified by the Borrower or with
      respect to which the Borrower has paid additional amounts pursuant to this
      Subsection
      1.13,
      it
      shall pay over such refund to Borrower (but only to the extent of indemnity
      payments made, or additional amounts paid, by the Borrower under this
Subsection
      1.13
      with
      respect to the Tax Liabilities giving rise to such refund) net of all
      out-of-pocket expenses of the Administrative Agent or such Lender and without
      interest (other than any interest paid by the relevant Governmental Authority
      with respect to such refund); provided,
      that
      the Borrower, upon the request of the Administrative Agent or such Lender,
      agrees to repay the amount paid over to the Borrower (plus any penalties,
      interest or other charges imposed by the relevant Governmental Authority) to
      the
      Administrative Agent or such Lender in the event the Administrative Agent or
      such Lender is required to repay such refund to such Governmental Authority.
      This Subsection
      1.13
      shall
      not be construed to require the Administrative Agent or any Lender to make
      available its tax returns (or any other information relating to its taxes which
      it deems confidential) to the Borrower or any other Person.

    

    1.14 Changes
      in Laws.
      In the
      event that, subsequent to the Closing Date, (i) any changes in any existing
      law,
      regulation, treaty or directive or in the interpretation or application thereof,
      (ii) any new law, regulation, treaty or directive enacted or any interpretation
      or application thereof, or (iii) compliance by the Administrative Agent or
      any
      Lender with any request or directive (whether or not having the force of law)
      from any Governmental Authority, does or shall impose on the Administrative
      Agent or any Lender any other condition or increased cost in connection with
      the
      transactions contemplated hereby or participations herein and the result of
      any
      of the foregoing is to increase the cost to the Administrative Agent or any
      such
      Lender of making or continuing any Loan hereunder, or to reduce any amount
      receivable hereunder, as the case may be, then, in any such case, the Borrower
      shall be obligated to promptly pay to the Administrative Agent or such Lender,
      upon its demand, any additional amounts necessary to compensate the
      Administrative Agent or such Lender, on an after-tax basis, for such additional
      cost or reduced amount receivable, as determined by the Administrative Agent
      or
      such Lender with respect to this Agreement or the other Loan Documents. If
      the
      Administrative Agent or such Lender becomes entitled to claim any additional
      amounts pursuant to this Subsection
      1.14,
      it
      shall promptly notify the Borrower of the event by reason of which the
      Administrative Agent or such Lender has become so entitled. A certificate as
      to
      any additional amounts payable pursuant to the foregoing sentence submitted
      by
      the Administrative Agent or such Lender to the Borrower and the Administrative
      Agent shall, absent manifest error, be final, conclusive and binding for all
      purposes. There is no limitation on the number of times such a certificate
      may
      be submitted; provided,
      however,
      that
      this Subsection
      1.14
      shall
      not apply to any changes in law with respect to taxes.

     

     

    
      
        
        

      

      
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    1.15 Term
      of This Agreement.
      All of
      the Obligations shall become due and payable as otherwise set forth herein,
      but
      in any event, all of the remaining Obligations shall become due and payable
      on
      the Term Loan Maturity Date. This Agreement shall remain in effect through
      and
      including, and (except with respect to provisions hereof expressly stated herein
      to survive any such termination) shall terminate immediately after, the date
      on
      which all Obligations shall have been indefeasibly and irrevocably paid and
      satisfied in full in cash.

     

    SECTION
      2

     

    AFFIRMATIVE
      COVENANTS

     

    The
      Borrower hereby covenants and agrees that so long as this Agreement is in effect
      and until payment in full of all Obligations, unless the Requisite Lenders
      shall
      otherwise give their prior written consent, the Borrower shall perform and
      comply with all covenants in this Section
      2.

     

    2.1 Existence;
      Businesses and Properties.

     

    (A) Preserve
      and maintain, cause each of the Principal Subsidiaries to preserve
      and maintain,
      and cause each other Subsidiary to preserve and maintain (where the failure
      by
      any such other Subsidiary to so preserve and maintain would likely result in
      a
      Material Adverse Effect), its corporate existence, rights and franchises, except
      in connection with an Asset Exchange, provided,
      however,
      that
      the
      corporate existence of any Principal Subsidiary may be terminated if such
      termination is not disadvantageous in any material respect to the Administrative
      Agent or any Lender;

     

    (B) continue
      to own all of the outstanding shares of common stock of each Principal Subsidiary,
      except in connection with an Asset
      Exchange;

     

    (C) comply,
      and cause each of the Subsidiaries to comply, in all
      material respects, with all applicable laws, rules, regulations and orders,
      including, without limitation, all Environmental Laws;

     

     

    
      
        
        

      

      
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    (D) pay,
      and
      cause each of the
      Subsidiaries to pay, before any such amounts become delinquent, (i) all taxes,
      assessments and governmental charges imposed upon it or upon its property,
      and
      (ii) all claims (including, without limitation, claims for labor, materials,
      supplies, or services) which might, if unpaid, become a Lien upon its property,
      unless, in each case,
      the
      validity or amount thereof is being disputed in good faith, and the Borrower
      has
      maintained adequate reserves with respect thereto, in each case where the
      failure to so pay would
      be
      reasonably expected to cause a Material Adverse Effect;

     

    (E) keep,
      and
      cause each of the Subsidiaries to keep, proper books of record and account,
      containing complete and accurate entries of all financial and business
      transactions of the Borrower and such Subsidiary in all material
      respects;

     

    (F) continue
      to carry on, and cause each Principal Subsidiary to continue to carry on,
      substantially the same type of business as the Borrower or such Principal
      Subsidiary conducted as of the date hereof and business reasonably related
      thereto, except for changes in such business that result from an Asset Exchange;
      and

     

    (G) maintain
      or cause to be maintained insurance with financially sound and reputable
      insurers, or self-insurance, with respect to its properties and business and
      the
      properties and business of the Subsidiaries against loss or damage of the kinds
      customarily insured against by reputable companies in the same or similar
      businesses, such insurance to be of such types and in such amounts (with such
      deductible amounts) as is customary for such companies under similar
      circumstances;

     

    provided,
      however,
      that
      the
      foregoing shall not limit the right of the Borrower or any of its Subsidiaries
      to engage in any transaction not otherwise prohibited by Subsection
      3.2,
      3.3
      or
3.4.

     

    2.2 Maintaining
      Records.
Maintain
      all financial records in accordance with GAAP and, upon reasonable notice,
      permit the Administrative Agent and each Lender to visit and inspect the
      financial records of the Borrower at reasonable times and as often as requested
      and to make extracts from and copies
      of
      such financial records, and permit any representatives designated by the
      Administrative Agent or any Lender to discuss the affairs, finances and
      condition of the Borrower with the appropriate officers thereof and, with the
      Borrower’s consent (which shall not be unreasonably withheld), the independent
      accountants therefor; provided,
      however,
      that
      if
      the Borrower shall so require, a single representative shall be appointed by
      the
      Requisite Lenders to exercise the rights granted to the Lenders under this
      Subsection
      2.2;
      provided,
      further,
      that
      when
      an Event of Default exists the Administrative Agent or any Lender may do any
      of
      the foregoing, upon reasonable notice, at any time during normal business hours
      (without appointment of a single representative by the Lenders).

     

    2.3 Use
      of
      Proceeds.
      The
      Borrower will use the proceeds of the Term Loan solely for the purposes
      described in the recital paragraphs to this Agreement.

     

     

    
      
        
        

      

      
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    2.4 CoBank
      Patronage Capital.
      So long
      as CoBank is a Lender hereunder, the Borrower will acquire non-voting
      participation certificates in CoBank in such amounts and at such times as CoBank
      may require in accordance with CoBank’s Bylaws and Capital Plan (as each may be
      amended from time to time), except that the maximum amount of participation
      certificates that the Borrower may be required to purchase in CoBank in
      connection with the Loans may not exceed the maximum amount permitted by the
      Bylaws and the Capital Plan at the time this Agreement is entered into. The
      rights and obligations of the parties with respect to such participation
      certificates and any distributions made on account thereof or on account of
      the
      Borrower’s patronage with CoBank shall be governed by CoBank’s Bylaws. CoBank
      agrees that all Loans that are made by CoBank and that are retained for its
      own
      account and not sold in a participation (except to a participant that makes
      patronage distributions to CoBank) shall be entitled to patronage distributions
      in accordance with CoBank’s Bylaws; all Loans that are made by CoBank and are
      included in a sale of a participation (except to a participant that makes
      patronage distributions to CoBank) shall not be entitled to patronage
      distributions. CoBank’s Pro Rata Share of the Loans and other Obligations due to
      CoBank shall be secured by a statutory first lien on all equity which the
      Borrower may now own or hereafter acquire in CoBank. Such equity shall not,
      however,
      constitute security for the Obligations due to any other Lender. CoBank shall
      not be obligated to set off or otherwise apply such equities to the Borrower’s
      obligations to CoBank. In the event of any liquidation, sale, transfer or other
      disposition of collateral that includes the Borrower’s participation
      certificates in CoBank, whether by foreclosure or otherwise, the proceeds
      attributable to such participation certificates shall be equal to the face
      value
      of such participation certificates as reflected in the official records of
      CoBank.

     

    SECTION
      3

     

    NEGATIVE
      COVENANTS

     

    The
      Borrower hereby covenants and agrees that so long as this Agreement is in effect
      and until payment in full of all Obligations, unless the Requisite Lenders
      shall
      otherwise give their prior written consent, the Borrower shall perform and
      comply with all covenants in this Section
      3,
      and the
      Borrower will not:

     

     

    
      
        
        

      

      
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    3.1 Liens;
      Restrictions on Sales of Receivables.
      Create,
      incur, assume, or suffer to exist,
      or
      permit
      any of the Principal Subsidiaries to create, incur, assume, or suffer to exist,
      any Lien on any of its property now owned or hereafter acquired to secure any
      Indebtedness of the Borrower or any such Principal Subsidiary, or sell or assign
      any accounts receivable (other than in the ordinary course of business
      substantially in accordance with the Borrower’s past practice), other than: (a)
      Liens incurred or deposits made in
      the
      ordinary course of business to secure surety and appeal bonds, leases,
      return-of-money bonds and other similar obligations (exclusive of obligations
      of
      the payment of borrowed money); (b) pledges or deposits to secure the utility
      obligations of the Borrower incurred in the ordinary course of business; (c)
      Liens upon or in property now owned or hereafter acquired to secure Indebtedness
      incurred solely for the purpose of financing the acquisition, construction
      or
      improvement of any property, provided that such Indebtedness shall not exceed
      the fair market
      value of the property being acquired, constructed or improved; (d) Liens
      on the
      assets of any Principal Subsidiary to secure the repayment of project financing
      for such Principal Subsidiary, (e) Liens on the assets of any Person merged
      or
      consolidated with or into (in accordance with Subsection
      3.4)
      the
      Borrower or any Principal Subsidiary that were in effect at the time of such
      merger or consolidation;
      (f) Liens for taxes, assessments and governmental charges or levies, which
      are
      not yet due or are which are being contested in good faith by appropriate
      proceedings; (g) Liens securing Indebtedness of the Borrower or any Principal
      Subsidiary to the Rural Electrification Administration or the Rural Utilities
      Service (or any successor to any such agency); (h) carriers’, warehousemen’s,
      mechanics’, materialmen’s, repairmen’s, suppliers or other like Liens arising in
      the ordinary course of business relating to obligations not overdue for a period
      of more than 60 days or which are bonded or being contested in good faith by
      appropriate proceedings; (i) pledges or deposits in connection with workers’
compensation laws or similar legislation or to secure public or statutory
      obligations; (j) Liens incurred on deposits to secure the performance of bids,
      trade contracts, leases, statutory obligations, surety and appeal bonds,
      performance bonds and other obligations of a like nature incurred in the
      ordinary course of business; (k) easements, rights of way, restrictions and
      other encumbrances incurred which, in the aggregate, do not materially interfere
      with the ordinary conduct of business; (l) restrictions by Governmental
      Authorities on the operations, business or assets of the Borrower or its
      Subsidiaries that are customary in the Borrower’s and its Subsidiaries’
businesses; (m) sales of accounts receivable pursuant to, and Liens existing
      or
      deemed to exist in connection with, any Securitization Transactions,
provided the
      aggregate amount of all such Securitization Transactions shall not at any time
      exceed $150,000,000; and (n) other Liens securing Indebtedness outstanding
      in an
      aggregate principal amount not to exceed $25,000,000; provided,
      however,
      that
      the
      Borrower or any Principal Subsidiary may create, incur, assume or suffer to
      exist other Liens (in addition to Liens excepted by the foregoing clauses (a)
      through (n)) on its assets so long as such Liens equally and ratably secure
      the
      Obligations pursuant to documentation in form and substance reasonably
      satisfactory to the Administrative Agent.

     

    3.2 Ownership
      of the Principal
      Subsidiaries.
      Sell,
      assign, pledge, or otherwise transfer or dispose of any shares of common stock,
      voting stock, or stock convertible into voting or common stock of any Principal
      Subsidiary, except (a) to another Subsidiary, or (b) in connection with an
      Asset
      Exchange; provided,
      however,
      that
      the
      Borrower may pledge any
      shares of common stock, voting stock, or stock convertible into voting or common
      stock of any Principal Subsidiary so long as such pledge equally and ratably
      secures the Obligations pursuant to documentation in form and substance
      reasonably satisfactory to the Administrative Agent.

     

    3.3 Asset
      Sales.
      Except
      in connection with an Asset Exchange, permit any Principal Subsidiary to sell,
      assign, or otherwise dispose of telecommunications assets (whether in one
      transaction or a series of transactions), if the net, after-tax proceeds thereof
      are used by the Borrower or any Subsidiary to prepay (other than a mandatory
      prepayment in accordance with the terms of the applicable governing documents,
      including pursuant to any put provision) Indebtedness incurred after the date
      hereof which Indebtedness has a maturity later than the Term Loan Maturity
      Date
      (other than bridge or other financings incurred in connection with an asset
      purchase or sale, including acquisition indebtedness or indebtedness of an
      acquired entity or indebtedness incurred to refinance indebtedness outstanding
      as of the date hereof).

        

        3.4 Mergers.
      Merge or
      consolidate with, or sell, assign, lease, or otherwise dispose of (whether
      in
      one transaction or a series of transactions) all or substantially all of its
      assets (whether now owned or hereafter acquired); except in connection with
      an
      Asset Exchange, to any Person, or permit any Principal Subsidiary to do so,
      except that any Subsidiary may merge into or, subject to Subsection
      3.3,
      transfer assets to the Borrower or any other Subsidiary and the Borrower may
      merge with any Person; provided that,
      immediately thereafter and after giving effect thereto, no event shall occur
      or
      be continuing which constitutes an Event of Default or a Default and, in the
      case of any such merger to which the Borrower is a party, either
      the Borrower is the surviving corporation
      or the surviving entity (if not the Borrower) has a Consolidated
      Net Worth (as determined in accordance with GAAP) immediately subsequent to
      such
      merger at least equal to the Consolidated Net Worth of the Borrower immediately
      prior to such merger and expressly assumes the obligations of the Borrower
      hereunder; provided,
      however,
      that,
      notwithstanding the foregoing, the Borrower and any of the Principal
      Subsidiaries may sell assets in the ordinary course of its business and may
      sell
      or otherwise dispose of worn out or obsolete equipment on a basis consistent
      with good business practices.

     

     

    
      
        
        

      

      
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    3.5 Restrictions
      on Dividends.

     

    (A) Enter
      into or permit any Principal Subsidiary to enter into, any contract or agreement
      (other than with a governmental regulatory authority having jurisdiction over
      the Borrower or such Principal Subsidiary) restricting the ability of such
      Principal Subsidiary to pay dividends or make distributions to the Borrower
      in
      any manner that could reasonably be expected to impair the ability of the
      Borrower to meet its present and future obligations hereunder.

     

    (B) In
      the
      case of the Borrower only, declare or make, directly or indirectly, any
      Restricted Payment, or incur any obligation (contingent or otherwise) to do
      so,
      in each case if any Event of Default has occurred and is continuing at the
      time
      of such action or will result therefrom (but excluding the payment of dividends
      declared and announced by the Board of Directors at a time when no Event of
      Default existed).

     

    3.6 Transactions
      with Affiliates.
      Except
      in connection with an Asset Exchange, sell or transfer any property or assets
      to, or purchase or acquire any property or assets from, or otherwise engage
      in
      any other transactions with, any of its Affiliates, except that as long as
      no
      Default or Event of Default shall have occurred and be continuing, the Borrower
      or any Subsidiary may engage in any of the foregoing transactions (i) in the
      ordinary course of business at prices and on terms and conditions not less
      favorable to the Borrower or such Subsidiary than could be obtained on an
      arm’s-length basis from unrelated third parties, (ii) as otherwise may be
      required by any Federal or state Governmental Authority, or (iii) so long as
      such transactions
      are not materially disadvantageous to the Borrower.

     

    3.7 Guarantees.
      Permit
      any Subsidiary to enter into, directly or indirectly, any Guarantee of any
      Indebtedness of the Borrower or any Subsidiary unless the Obligations are
      Guaranteed on a pari passu basis pursuant to documentation in form and substance
      reasonably satisfactory to the Administrative Agent, except (i) any Guarantee
      in
      effect at the time such Subsidiary becomes a
      Subsidiary of the Borrower, so long as such Guarantee was not entered into
      solely in contemplation of such Person becoming a Subsidiary of the Borrower,
      (ii) any Guarantee in effect as of the Closing Date that is listed on
Schedule
      3.7,
      and
      (iii) additional Guarantees
      aggregating not more than $25,000,000 at any one time outstanding.

     

     

    SECTION
      4

     

    FINANCIAL
      COVENANTS AND REPORTING

     

    The
      Borrower hereby covenants and agrees that so long as this Agreement is in effect
      and until payment in full of all Obligations, unless the Requisite Lenders
      shall
      otherwise give their prior written consent, the Borrower shall perform and
      comply with all covenants in this Section
      4.
      For the
      purposes of this Section
      4,
      all
      covenants calculated for the Borrower shall be calculated on a consolidated
      basis for the Borrower and its Subsidiaries.

     

     

    
      
        
        

      

      
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    4.1 Total
      Leverage Ratio.
      The
      Borrower shall maintain at all times, measured at each fiscal quarter end,
      a
      Total Leverage Ratio less than or equal to 4.5:1.0; provided,
      that if
      after the Closing Date the Borrower provides any other holder of Indebtedness
      with additional or more restrictive financial covenants than set forth set
      forth
      in this Subsection
      4.1,
      then
      this Agreement shall be deemed to include, and this Agreement shall be amended
      to contain, such additional and more restrictive financial
      covenants.

     

    4.2 Financial
      Statements and Other
      Reports.
      The
      Borrower will and will cause its Subsidiaries to maintain a system of accounting
      established and administered in accordance with sound business practices to
      permit preparation of financial statements in conformity with GAAP consistently
      applied (it being understood that quarterly financial statements are not
      required to have footnote disclosures and are subject to normal year-end audit
      adjustments). The Borrower will deliver each of the financial statements and
      other reports described below to the Administrative Agent.

     

    (A) Quarterly
      Financials.
      As soon
      as available and in any event within 65 days after the end of the first three
      fiscal quarters of each fiscal year of the Borrower, the Borrower will deliver
      consolidated balance sheets of the Borrower and its Subsidiaries, as at the
      end
      of such fiscal quarter and the then elapsed portion of the applicable fiscal
      year, and the related consolidated statements of income, shareholders’ equity
      and cash flows for such fiscal quarter and for the period from the beginning
      of
      the then current fiscal year of the Borrower to the end of such quarter
(which
      requirement shall be deemed satisfied by the delivery of the Borrower’s
      Quarterly Report on Form 10-Q (or any successor form) for such year).

     

    (B) Year-End
      Financials.
      As soon
      as available and in any event within 110 days after the end of each fiscal
      year
      of the Borrower, the Borrower will deliver (i) consolidated balance sheets
      of the Borrower and its Subsidiaries, as at the end of such year, and the
      related consolidated statements of income, shareholders’ equity and cash flows
      for such fiscal year (which
      requirement shall be deemed satisfied by the delivery of the Borrower’s Annual
      Report on Form 10-K (or any successor form) for such year)
      and
      (ii) a report with respect to the financial statements from a firm of
      independent certified public accountants of recognized national standing
      selected by the Borrower and reasonably acceptable to the Administrative Agent,
      which report shall be without a “going concern” or like qualification and
      without any material qualification or exception as to the scope of such
      audit.

     

    (C) The
      Borrower Compliance Certificate.
      Together with each delivery of financial statements of the Borrower and its
      Subsidiaries pursuant to Subsections
      4.2(A)
      or
4.2(B),
      the
      Borrower will deliver a compliance certificate in substantially the same form
      as
Exhibit
      4.2(C)
      (each, a
“Compliance
      Certificate”)
      signed
      by the chief financial officer or the treasurer of the Borrower (i) certifying
      as to whether a Default has occurred and, if a Default has occurred, specifying
      the details thereof and any action taken or proposed to be taken with respect
      thereto and (ii) setting forth reasonably detailed calculations (including
      with
      respect to any pro forma effect given to a Material Transaction) demonstrating
      compliance with Subsection
      4.1
      as of
      the last day of the most recent fiscal quarter covered by such financial
      statements.

     

     

    
      
        
        

      

      
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    (D) Budget.
      As soon
      as available and in any event within 65 days after the end of each of the
      Borrower’s fiscal years, the Borrower will deliver a Budget of the Borrower and
      its consolidated Subsidiaries for such fiscal year. As soon as available and
      in
      any event within 120 days after the end of each of the Borrower’s fiscal years,
      the Borrower will deliver a Budget of the Borrower and its consolidated
      Subsidiaries for such fiscal year and the next succeeding four fiscal
      years.

     

    (E) SEC
      Filings.
      Promptly upon the mailing or filing thereof, copies of all financial statements,
      reports and proxy statements mailed to the Borrower’s public shareholders, and
      copies of all registration statements (other than those on Form S-8) and Form
      8-K’s (to the extent that such Form 8-K’s disclose actual or potential adverse
      developments with respect to the Borrower or any of its Subsidiaries that
      constitute, or could reasonably be anticipated to constitute, a Material Adverse
      Effect) filed with the Securities and Exchange Commission (the “SEC”)
      (or
      any successor thereto) or any national securities exchange.

     

    (F) Events
      of Default, Etc.
      Promptly
      upon any officer of the Borrower obtaining knowledge of any Event of Default
      or
      Default, the Borrower shall deliver a certificate of the Borrower’s chief
      financial officer or treasurer, specifying the nature and extent thereof and
      the
      corrective action (if any) proposed to be taken with respect
      thereto.

     

    (G) Litigation.
      Promptly upon any officer of the Borrower obtaining knowledge of the filing
      or
      commencement of, or any written notice of intention of any Person to file or
      commence, any action, suit or proceeding, whether at law or in equity or by
      or
      before any Governmental Authority, against the Borrower or any of its
      Subsidiaries which is reasonably likely to be adversely determined and which,
      if
      adversely determined, could reasonably be anticipated to result in a Material
      Adverse Effect, the Borrower will give notice thereof to the Administrative
      Agent and provide such other information as may be requested by the
      Administrative Agent and reasonably available to the Borrower to enable the
      Administrative Agent and its counsel to evaluate such matter.

     

    (H) Regulatory
      and Other Notices.
      Within
      15 days after filing or receipt, copies of any non-ordinary course (as
      determined in good faith by the Borrower) filings or communications sent to
      or
      notices and other communications received by the Borrower or any of its
      Subsidiaries from any Governmental Authority, including the FCC, any applicable
      PUC and the SEC, relating to any noncompliance by the Borrower or any of its
      Subsidiaries with any law or with respect to any matter or proceeding the effect
      of which could reasonably be expected to have a Material Adverse
      Effect.

     

    (I) Material
      Adverse Effect.
      The
      Borrower will give prompt written notice to the Administrative Agent of any
      development with respect to the Borrower or any of its Subsidiaries that has
      resulted in, or could reasonably be anticipated to result in, a Material Adverse
      Effect.

     

    (J) ERISA
      Events.
      Promptly
      after becoming aware of any ERISA Event, which could reasonably be expected
      to
      have a Material Adverse Effect, the Borrower will give notice to the
      Administrative Agent thereof and provide such information relating thereto
      as
      may be requested by the Administrative Agent and reasonably available to the
      Borrower to enable the Administrative Agent and the Lenders to reasonably
      evaluate such matter.

     

     

    
      
        
        

      

      
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    (K) Delivery
      of Information.
      Documents required to be delivered pursuant to Subsection
      4.2(A),
      (B)
      or
(E)
      (to the
      extent any such documents are included in materials otherwise filed with the
      SEC) may be delivered electronically and if so delivered, shall be deemed to
      have been delivered on the date (i) on which the Borrower posts such documents,
      or provides a link thereto on the Borrower’s on the Internet at the website
      address listed in Subsection
      9.3;
      or (ii)
      on which such documents are posted on the Borrower’s behalf on an Internet or
      intranet website, if any, to which each Lender and the Administrative Agent
      have
      access (whether a commercial, third-party website or whether sponsored by the
      Administrative Agent); provided
      that:
      (i) the Borrower shall deliver paper copies of such documents to the
      Administrative Agent or any Lender that requests the Borrower to deliver
      such paper
      copies until a written request to cease delivering paper copies is given by
      the
      Administrative Agent or such Lender and (ii) the Borrower shall notify the
      Administrative Agent and each Lender (by telecopier or electronic mail) of
      the
      posting of any such documents and provide to the Administrative Agent by
      electronic mail electronic versions (i.e., soft copies) of such documents.
      Notwithstanding anything contained herein, in every instance the Borrower
      shall be
      required to provide paper copies of the Compliance Certificates required by
      Subsection
      4.2(C)
      to the
      Administrative Agent. Except for Compliance Certificates, the Administrative
      Agent shall have no obligation to request the delivery or to maintain copies
      of
      the documents referred to above, and in any event shall have no responsibility
      to monitor compliance by the Borrower with any such request for delivery, and
      each Lender shall be solely responsible for requesting delivery to it or
      maintaining its copies of such documents.

     

    4.3 Accounting
      Terms; Utilization of GAAP for Purposes
      of Calculations Under Agreement.
      For
      purposes of this Agreement, all accounting terms not otherwise defined herein
      shall have the meanings assigned to such terms in conformity with GAAP. Except
      as otherwise expressly provided, financial statements and other information
      furnished to the Administrative Agent and the Lenders pursuant to this Agreement
      shall be prepared in accordance with GAAP as in effect at the time of such
      preparation. For purposes of determining the Borrower’s compliance with the
      financial covenant set forth in Subsection
      4.1
      of this
      Agreement, all terms of an accounting or financial nature shall be construed
      in
      accordance with GAAP, as in effect from time to time; provided,
      however,
      that if
      the Borrower notifies the Administrative Agent that the Borrower wishes to
      amend
      the covenant in Subsection
      4.1
      or any
      related definition to eliminate the effect of any change in GAAP occurring
      after
      the date of this Agreement on the operation of such covenant (or if the
      Administrative Agent notifies the Borrower that the Requisite Lenders wish
      to
      amend Subsection
      4.1
      or any
      related definition for such purpose), then the Borrower’s compliance with such
      covenant shall be determined on the basis of GAAP in effect immediately before
      the relevant change in GAAP became effective, until either such notice is
      withdrawn or such covenant is amended in a manner satisfactory to the Borrower
      and the Requisite Lenders.

     

    SECTION
      5

     

    REPRESENTATIONS
      AND WARRANTIES

     

    In
      order
      to induce the Administrative Agent and the Lenders to enter into this Agreement
      and to make the Term Loan, the Borrower hereby represents and warrants to the
      Administrative Agent and each Lender on the Closing Date (except as may be
      set
      forth on the attached Schedules and acceptable to the Administrative Agent)
      and
      on the Funding Date that:

     

     

    
      
        
        

      

      
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    5.1 Organization,
      Powers, Governmental
      Approvals.

     

    (A) The
      Borrower and each Principal Subsidiary (i) is a corporation duly organized,
      validly existing and in good standing under the laws of the jurisdiction of
      its
      organization, (ii) has all requisite power and authority to own its property
      and
      assets and to carry on its business as now conducted and (iii) is qualified
      to
      do business in every jurisdiction where such qualification is required, except
      where the failure so to qualify would not have a Material Adverse Effect. The
      Borrower’s execution, delivery and performance of the Loan Documents are within
      its corporate powers, have been duly authorized by all necessary action and
      do
      not violate or create a default under (a) law, (b) its constituent documents,
      or
      (c) any contractual provision binding upon it, except to the extent (in the
      case
      of violations or defaults described under clauses (a) or (c)) where such
      violation or default would not reasonably be expected to result in a Material
      Adverse Effect. Each of the Loan Documents constitutes the legal, valid and
      binding obligation of the Borrower enforceable against it in accordance with
      its
      terms (except as such enforceability may be limited by applicable bankruptcy,
      reorganization, insolvency, moratorium and other laws affecting the rights
      of
      creditors generally and general principles of equity, including an implied
      covenant of good faith and fair dealing).

     

    (B) Except
      for (i) any Governmental Approvals required in connection with any Borrowings
      (such approvals being “Borrowing
      Approvals”) and
      (ii)
      any Governmental Approvals the failure to obtain which could not reasonably
      be
      expected to result in a Material Adverse Effect or affect the validity or
      enforceability of this Agreement or any other Loan Document, all Governmental
      Approvals required in connection with the execution and delivery by the Borrower
      of this Agreement and the other Loan Documents and the performance by the
      Borrower of its obligations hereunder and thereunder have been, and, prior
      to
      the time of any Borrowing, all Borrowing Approvals will be, duly obtained,
      are
      (or, in the case of Borrowing Approvals, will be) in full force and effect
      without having been amended or modified in any manner that may impair the
      ability of the Borrower to perform its obligations under this Agreement, and
      are
      not (or, in the case of Borrowing Approvals, will not be) the subject of any
      pending appeal, stay or other challenge.

     

    5.2 Financial
      Statements.
      The
      Borrower has furnished to the Lenders, for itself and its Subsidiaries, its
      most
      recent filings with the Securities and Exchange Commission on Forms 10-K and
      10-Q. Such Forms 10-K and 10-Q do not contain any untrue statement of a material
      fact or omit to state a material fact necessary to make any statement therein,
      in light of the circumstances under which it was made, not misleading. Each
      of
      the financial statements in such Forms 10-K and 10-Q has been, and each of
      the
      financial statements to be furnished pursuant to Subsection
      4.2
      will be,
      prepared in accordance with GAAP applied consistently with prior periods, except
      as therein noted, and fairly presents or will fairly present in all material
      respects the consolidated financial position of the Borrower and its
      Subsidiaries as of the date thereof and the results of the operations of the
      Borrower and its Subsidiaries for the period then ended.

     

    5.3 No
      Material Adverse Effect.
      Since
      the date of the Borrower’s most recent financial statements contained in its
      Annual Report on Form 10-K for the fiscal year ended December 31, 2005, there
      has been no material adverse change in, and there has occurred no event or
      condition which is likely to result in a material adverse change in, the
      financial condition, results of operations, business, assets or operations
      of
      the Borrower and the Subsidiaries taken as a whole (it being understood that
      the
      consummation of an Asset Exchange shall not constitute such a material adverse
      change).

     

     

    
      
        
        

      

      
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    5.4 Title
      to Properties; Possession Under
      Leases.

     

    (A) To the
      best
      of the Borrower’s knowledge, each of the Borrower and the Principal Subsidiaries
      has good and marketable title to, or valid leasehold interests in,
      or other
      rights to use or occupy, all its material properties and assets, except for
      minor defects in title that do not interfere with its ability to conduct its
      business as currently conducted or to utilize such properties and assets for
      their intended purposes. All such material properties and assets are free and
      clear of Liens, other than Liens expressly permitted by Subsection
      3.1.

     

    (B) Each
      of
      the Borrower and the Principal Subsidiaries has complied with all obligations
      under all material leases to which it is a party and all such leases are in
      full force
      and
      effect, except where such failure to comply or maintain such leases in full
      force and effect would not have a Material Adverse Effect. Each of the Borrower
      and the Subsidiaries enjoys peaceful and undisturbed possession under all such
      material leases except where such failure would not have a Material Adverse
      Effect.

     

    5.5 Ownership
      of Subsidiaries.
      The
      Borrower owns, free and clear of any Lien (other than Liens expressly permitted
      by Subsection
      3.1),
      all of
      the issued and outstanding shares of common stock of each of the Principal
      Subsidiaries.

     

    5.6 Litigation;
      Compliance with
      Laws.

     

    (A) There
      is
      no action, suit, or proceeding, or any governmental investigation or any
      arbitration, in each case pending or, to the knowledge of the Borrower,
      threatened against the Borrower or any of the Subsidiaries or any material
      property of any thereof before any court or arbitrator or any governmental
      or
      administrative body, agency, or official which (i) challenges the validity
      of
      this Agreement or any other Loan Document, (ii) may reasonably be expected
      to
      have a material adverse effect on the ability of the Borrower to perform any
      of
      its material obligations under this Agreement or any other Loan Document or
      on
      the material rights of or material benefits available to
      the Lenders
      under this Agreement or any other Loan Document or (iii) except as disclosed
      in
      the Borrower’s Annual Report on Form 10-K for the fiscal year ended December 31,
      2005 or the Borrower’s Quarterly Reports on Form 10-Q for the periods ending
      March 31, 2006, June 30,
      2006
      or September 30, 2006, would reasonably be expected to have a Material Adverse
      Effect.

     

    (B) Neither
      the Borrower nor any of the Subsidiaries is in violation of any law,
      rule, or regulation, or in default with respect to any judgment, writ,
      injunction or decree of any Governmental Authority, where such violation or
      default would reasonably be expected to have a Material Adverse
      Effect.

     

     

    
      
        
        

      

      
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    (C) Except
      as
      set forth in or contemplated by the financial statements or other reports
      referred to in Subsection
      5.2
      and
      which have been delivered to the Lenders on or prior to the date hereof, (i)
      the
      Borrower and each of its Subsidiaries have complied with all Environmental
      Laws,
      except to the extent that failure to so comply would not reasonably be expected
      to have a Material Adverse Effect, (ii) neither the Borrower nor any of its
      Subsidiaries has failed to obtain,
      maintain
      or comply with any permit, license or other approval under any Environmental
      Law, except where such failure would not reasonably be expected to have a
      Material Adverse Effect, (iii) neither the Borrower nor any of its Subsidiaries
      has received notice of any failure to comply with
      any
      Environmental Law or become subject to any liability under any Environmental
      Law, except where such failure or liability would not reasonably be expected
      to
      have a Material Adverse Effect, (iv) no facilities of the Borrower or any of
      its
      Subsidiaries are used to manage any Specified Substance in violation of any
      law,
      except to the extent that such violations, individually or in the aggregate,
      would not reasonably be expected to have a Material Adverse Effect, and (v)
      the
      Borrower is aware of no events, conditions or circumstances involving any
      Release of a Specified Substance that would reasonably be expected to have
      a
      Material Adverse Effect.

     

    5.7 Agreements.

     

    (A) Neither
      the Borrower nor any of the Subsidiaries is a party to any agreement or
      instrument or subject to any corporate restriction that has resulted, or would
      reasonably be expected to result, in a Material Adverse Effect.

     

    (B) Neither
      the Borrower nor any of the Subsidiaries is in default under any indenture
      or
      other agreement or instrument evidencing Indebtedness, or any other material
      agreement or instrument to which it is a party or by which it or any of its
      properties or assets are or may be bound, where such default would reasonably
      be
      expected to result in a Material Adverse Effect.

     

    5.8 Federal
      Reserve Regulations.
      No part
      of the proceeds of the Loans will be used, whether directly or indirectly,
      and
      whether immediately, incidentally, or ultimately, for any purpose which entails
      a violation of the Margin Regulations.

     

    5.9 Investment
      Company Act; Public Utility
      Holding Company Act.
      Neither
      the Borrower nor any of the Subsidiaries is (a) an “investment company” as
      defined in, or subject to regulation under, the Investment Company Act of 1940
      or (b) a “holding company” as defined in, or subject to regulation under, the
      Public Utility Holding Company Act of 2005.

     

            
      5.10Use
      of Proceeds. The Borrower will use the
      proceeds of the Term Loan solely for the purposes described in the recital
      paragraphs to this Agreement.

     

    5.11 Tax
      Returns.
      Each of
      the Borrower and the Subsidiaries has filed or caused to be filed all Federal
      and all material state and local tax returns required to have been filed by
      it
      and has paid or caused to be paid all taxes shown to be due and payable on
      such
      returns or on any assessments received by it, except (i) taxes that are being
      contested in good faith by appropriate proceedings and for which the
      Borrower shall have set aside on its books adequate reserves or (ii) where
      such
      failure to file or pay would not reasonably be expected to result in a Material
      Adverse Effect.

     

     

    
      
        
        

      

      
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    5.12 No
      Material Misstatements.
      No
      statement, information, report, financial statement, exhibit or schedule
      furnished by
      or on
      behalf of the Borrower to the Administrative Agent or any Lender in connection
      with the syndication or negotiation of this Agreement or any other Loan Document
      or included herein or therein or delivered pursuant hereto or thereto contained,
      contains, or will contain any material misstatement of fact or intentionally
      omitted, omits, or will omit to state any material fact necessary to make the
      statements therein, in the light of the circumstances under which they were,
      are, or will be made, not misleading; provided
      that to
      the extent any such information, report, financial statement, exhibit or
      schedule was based upon or constitutes a forecast or projection, the Borrower
      represents only that it acted in good faith and utilized assumptions believed
      by
      it to be reasonable in the preparation of such information, report, financial
      statement, exhibit or schedule.

    

    5.13 Employee
      Benefit Plans.

     

    (A) Each
      Plan
      is in compliance with ERISA, except for
      such
      noncompliance that has not resulted, and would not reasonably be expected to
      result, in a Material Adverse Effect.

     

    (B) No
      Plan
      has an accumulated or waived funding deficiency within the meaning of Section
      412 or Section 418B of the IRC, except for any such deficiency that has not
      resulted, and would not reasonably be expected to result, in a Material Adverse
      Effect.

     

    (C) No
      proceedings have been instituted to terminate any Plan, except for
      such
      proceedings where the termination of a Plan has not resulted, and would not
      reasonably be expected to result, in a Material Adverse Effect.

     

    (D) Neither
      the Borrower nor any Subsidiary or ERISA Affiliate has incurred any liability
      to or on account of a Plan under ERISA (other than obligations to make
      contributions in
      accordance with such Plan), and no condition exists which presents a material
      risk to the Borrower or any Subsidiary of incurring such a liability,
      except for such
      liabilities that have not resulted,
      and would not reasonably be expected to result, in a Material Adverse
      Effect.

     

    5.14 Insurance.
      Each of
      the Borrower and the Principal Subsidiaries maintains insurance with financially
      sound and reputable insurers, or self-insurance, with respect to its properties
      and business
      against loss or damage of the kind customarily insured against by reputable
      companies in the same or similar business and of such types and in such amounts
      (with such deductible amounts) as
      is
      customary for such companies under similar circumstances.

     

    SECTION
      6

     

    EVENTS
      OF
      DEFAULT AND RIGHTS AND REMEDIES

     

    6.1 Event
      of Default.“Event
      of
      Default” shall mean the occurrence or existence of any one or more of the
      following:

     

    (A) Payment.
      (i)
      Failure to repay any outstanding principal amount of the Term Loan at the time
      required pursuant to this Agreement, or (ii) failure to pay any interest on
      the
      Term Loan or any other amount due under this Agreement or any of the other
      Loan
      Documents and such default shall continue unremedied for a period of five
      Business Days; or

     

     

    
      
        
        

      

      
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    (B) Default
      in Other Agreements.
      (i) The
      Borrower or any Principal Subsidiary, as the case may be, fails to pay when
      due,
      or within any grace period applicable thereto by the terms thereof, any
      Indebtedness of the Borrower or any Principal Subsidiary aggregating $50,000,000
      or more, or (ii) the Borrower or any Principal Subsidiary shall fail to observe
      or perform any covenant or agreement contained in any single agreement or
      instrument relating to any Indebtedness in excess of $50,000,000 in the
      aggregate, in each case within any applicable grace period, or any other event
      shall occur if the effect of such failure or other event is to accelerate,
      or to
      permit the holder of such Indebtedness or any other Person to accelerate, the
      maturity of such Indebtedness; or any such Indebtedness shall be required to
      be
      prepaid (other than by a regularly scheduled required prepayment, pursuant
      to
      any put right (or similar right) of the holder thereof, or by the exercise
      by
      the Borrower or such Principal Subsidiary of its right to make a voluntary
      prepayment) in
      whole
      or in part prior to its stated maturity; or there occurs under any Swap Contract
      an Early Termination Date (as defined in such Swap Contract) resulting from
      (A)
      any event of default under such Swap
      Contract as to which the Borrower or any Principal Subsidiary is the Defaulting
      Party (as defined in such Swap Contract) or (B) any Termination Event (as so
      defined) under
      such Swap Contract as to which the Borrower or any Principal Subsidiary is
      an
      Affected Party (as so defined) and, in either event, the Swap Termination Value
      owed by the Borrower or such Subsidiary as a result thereof is greater than
      $50,000,000; or

     

               
      (C) Breach
      of Certain Provisions.
      Failure
      of the Borrower or any of its Subsidiaries to perform or comply with any term
      or
      condition contained in Subsection
      2.3,
      Section
      3
      or
Subsections
      4.1
      or
4.2(F),
      (G),
      (I)
      or
(J);
      or

     

              
       (D) Breach
      of Warranty.
      Any
      representation, warranty, certification or other statement made by the Borrower
      or any of its Subsidiaries in any Loan Document or in any statement or
      certificate at any time given by the Borrower or any of its Subsidiaries or
      in
      writing pursuant or in connection with any Loan Document is false in any
      material respect on the date made or deemed made; or

     

    (E) Other
      Defaults Under Loan Documents.
      The
      Borrower or any of its Subsidiaries breaches or defaults in the performance
      of
      or compliance with any term contained in this Agreement or the other Loan
      Documents and such default is not remedied or waived within 30 days after the
      earlier of (i) the Borrower obtaining knowledge of such breach or default or
      (ii) receipt by the Borrower or any such Subsidiary of notice from the
      Administrative Agent or the Requisite Lenders of such default (other than
      occurrences described in other provisions of this Subsection
      6.1
      for
      which a different grace or cure period is specified or which constitute
      immediate Events of Default); or

     

    (F) Involuntary
      Bankruptcy; Appointment of Receiver; Etc.
      An
      involuntary proceeding shall be commenced or an involuntary petition shall
      be
      filed in a court of competent jurisdiction seeking (i) relief in respect of
      the
      Borrower or any Principal Subsidiary, or of a substantial part of the property
      or assets of the Borrower or a Principal Subsidiary, under the Bankruptcy Code,
      (ii) the appointment of a receiver, trustee, custodian, sequestrator,
      conservator, or similar official for the Borrower or any Principal Subsidiary
      or
      for a substantial part of the property or assets of the Borrower or,
      a
      Principal Subsidiary, or (iii) the winding-up or liquidation of the Borrower
      or
      any Principal Subsidiary; and such proceeding or petition shall continue
      undismissed for 60 days or an order or decree approving or ordering any of
      the
      foregoing shall be entered; or

     

     

    
      
        
        

      

      
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    (G) Voluntary
      Bankruptcy; Appointment of Receiver; Etc.
      The
      Borrower or any Principal Subsidiary shall (i) voluntarily commence any
      proceeding or file any petition seeking relief under the Bankruptcy Code, (ii)
      consent to the institution of, or fail to contest in a timely and appropriate
      manner, any proceeding or the filing of any petition described in Subsection
      6.1(F), (iii)
      apply for or consent to the appointment of a receiver, trustee, custodian,
      sequestrator, conservator, or similar official for the Borrower or any Principal
      Subsidiary or for a substantial part of the property or assets of the Borrower
      or any Principal Subsidiary, (iv) file an answer admitting the material
      allegations of a petition filed against it in any such proceeding, (v) make
      a
      general assignment for the benefit of creditors, (vi) become unable, admit
      in
      writing its inability, or fail generally to pay its debts as they become due,
      or
      (vii) take any action for the purpose of effecting any of the foregoing;
      or

     

    (H) Judgment
      and Attachments.
      A
      judgment or order for the payment of money in excess of $50,000,000 and having
      a
      Material Adverse Effect shall be rendered against the Borrower or any of its
      Subsidiaries and such judgment or order shall continue unsatisfied (in the
      case
      of a money judgment) and in effect for a period of 30 days during which
      execution shall not be effectively stayed or deferred (whether by action of
      a
      court, by agreement, or otherwise); or
 

    (I) ERISA;
      Pension Plans.
      A Plan
      shall fail to maintain the minimum funding standard required by Section 412(a)
      of the IRC for any plan year or a waiver of such standard is sought or
      granted under Section 412(d), or a Plan is or shall have been terminated or
      the
      subject of termination proceedings under ERISA, or the Borrower or an ERISA
      Affiliate has incurred a liability to or on account of a Plan under Section
      4062, 4063, 4064, 4201 or 4204 of ERISA, and there shall result from any such
      event or events a Material Adverse Effect; or

     

    (J) Change
      in Control.
      There
      shall have occurred a Change in Control.

     

    6.2 Suspension
      of the Term Loan
      Commitment.
      Upon the
      occurrence and during the continuation of any Default or Event of Default,
      and
      without limiting any other right or remedy hereunder, each Lender, without
      notice or demand, may immediately cease making additional Loans and cause its
      obligation to lend its Pro Rata Share of the Term Loan Commitment to be
      suspended; provided
      that, in
      the case of a Default, if the subject condition or event is cured to the
      reasonable satisfaction of the Requisite Lenders (unless otherwise provided
      in
Subsection
      9.2)
      or
      waived or removed by the Requisite Lenders (unless otherwise provided in
Subsection
      9.2)
      within
      any applicable grace or cure period, any suspended portion of the Term Loan
      Commitment shall be reinstated.

     

    6.3 Acceleration.
      Upon the
      occurrence of any Event of Default described in the foregoing Subsections
      6.1(F)
      or
6.1(G),
      the
      unpaid principal amount of and accrued interest and fees on the Term Loan and
      all other Obligations shall automatically become immediately due and payable,
      without presentment, demand, protest, notice of intent to accelerate, notice
      of
      acceleration or other requirements of any kind, all of which are hereby
      expressly waived by the Borrower, and the obligations of the Lenders to make
      Loans shall thereupon terminate. Upon the occurrence and during the continuance
      of any other Event of Default, the Administrative Agent may, and upon written
      demand by Requisite Lenders shall, by written notice to the Borrower, declare
      all or any portion of the Term Loan and all or some of the other Obligations
      to
      be, and the same shall forthwith become, immediately due and payable together
      with accrued interest thereon, and upon such acceleration the obligations of
      the
      Administrative Agent and the Lenders to make Loans shall thereupon
      terminate.

     

     

    
      
        
        

      

      
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    6.4 Rights
      of Collection.
      Upon the
      occurrence and during the continuation of any Event of Default and at any time
      thereafter, unless and until such Event of Default is cured, or waived or
      removed by Requisite Lenders, the Administrative Agent may exercise on behalf
      of
      the Lenders all of their other rights and remedies under this Agreement, the
      other Loan Documents and Applicable Law, in order to satisfy all of the
      Obligations.

     

    6.5 Consents.
      The
      Borrower acknowledges that certain transactions contemplated by this Agreement
      and the other Loan Documents and certain actions which may be taken by the
      Administrative Agent or the Lenders in the exercise of their respective rights
      under this Agreement and the other Loan Documents may require the consent of
      a
      Governmental Authority. If the Administrative Agent reasonably determines that
      the consent of a Governmental Authority is required in connection with the
      execution, delivery and performance of any of the aforesaid Loan Documents
      or
      any Loan Documents delivered to the Administrative Agent or the Lenders in
      connection therewith or as a result of any action which may be taken pursuant
      thereto, then the Borrower, at the Borrower’s cost and expense, agrees to use
      commercially reasonable efforts, and to cause its Subsidiaries to use their
      commercially reasonable efforts, to secure such consent and to cooperate with
      the Administrative Agent and the Lenders in any action commenced by the
      Administrative Agent or any Lender to secure such consent.

     

    6.6 Set
      Off and Sharing of Payments.
      In
      addition to any rights now or hereafter granted under applicable law and not
      by
      way of limitation of any such rights, during the continuance of any Event of
      Default, each Lender is hereby authorized by the Borrower at any time or from
      time to time, to set off and to apply any and all (A) balances held by such
      Lender at any of its offices for the account of the Borrower (regardless of
      whether such balances are then due to the Borrower), and (B) other property
      at
      any time held or owing by such Lender to or for the credit or for the account
      of
      the Borrower, against and on account of any of the Obligations; provided,
      that no
      Lender shall exercise any such right without the prior written consent of the
      Administrative Agent. Any Lender exercising a right to set off shall, to the
      extent the amount of any such set off exceeds its Pro Rata Share of the amount
      set off, purchase for cash (and the other Lenders shall sell) interests in
      each
      such other Lender’s Pro Rata Share of the Obligations as would be necessary to
      cause such Lender to share such excess with each other Lender in accordance
      with
      their respective Pro Rata Shares. The Borrower agrees, to the fullest extent
      permitted by law, that any Lender may exercise its right to set off with respect
      to amounts in excess of its Pro Rata Share of the Obligations and upon doing
      so
      shall deliver such excess to the Administrative Agent for the benefit of all
      the
      Lenders in accordance with their Pro Rata Shares; provided,
      that
      CoBank may exercise its rights against any equity of CoBank held by the Borrower
      without complying with this Subsection
      6.6.

     

    6.7 Application
      of Payments.
      Subsequent to the acceleration of the Term Loan pursuant to Subsection
      6.3,
      all
      payments received by the Lenders on the Obligations and on the proceeds from
      the
      enforcement of the Obligations shall be applied among the Administrative Agent
      and the Lenders as follows: first, to all the Administrative Agent’s and the
      Lenders’ fees and expenses then due and payable; then to all other expenses then
      due and payable by the Borrower under the Loan Documents; then to all indemnitee
      obligations then due and payable by the Borrower under the Loan Documents;
      then
      to all accrued and unpaid interest on the Term Loan in accordance with all
      such
      amounts due on the Term Loan; then to the principal amount of the Term Loan;
      and
      then to any remaining amounts due under the Obligations, in that order
      (provided, such priority may be changed with the consent of the Requisite
      Lenders). Any remaining monies not applied as provided in this Subsection
      6.7
      shall be
      paid to the Borrower or any Person lawfully entitled thereto.

     

     

    
      
        
        

      

      
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    6.8 Adjustments.
      If any
      Lender (a “Benefited
      Lender”)
      shall
      at any time receive any payment of all or part of its Loans, or interest thereon
      in a greater proportion than any such payment received by any other Lender
      (other than pursuant to Subsection
      1.12(2)),
      if
      any, in respect of such other Lender’s Loans, or interest thereon, such
      Benefited Lender shall, to the extent permitted by Applicable Law, purchase
      for
      cash from the other Lenders such portion of each such other Lender’s Loans as
      shall be necessary to cause such Benefited Lender to share the excess payment
      or
      benefits ratably with each Lender; provided,
      that if
      all or any portion of such excess payment or benefits is thereafter recovered
      from such Benefited Lender, such purchase shall be rescinded, and the purchase
      price and benefits returned to the extent of such recovery, but without
      interest. The Borrower agrees that each Lender so purchasing a portion of
      another Lender’s Loans may exercise all rights of payment (including rights of
      set-off) with respect to such portion as fully as if such Lender were the direct
      holder of such portion. This Subsection 6.8
      shall
      not apply to any action taken by CoBank with respect to equity in it held by
      the
      Borrower.

     

    SECTION
      7

     

    CONDITIONS
      TO THE TERM LOAN

     

    The
      obligations of each Lender to make its Pro Rata Share of the Term Loan are
      subject to satisfaction of all of the applicable conditions set forth
      below.

     

    7.1 Conditions
      to the Term Loan.
      The
      obligations of the Lenders to make the Term Loan are, in addition to the
      conditions precedent specified in Subsection
      7.2,
      subject
      to the satisfaction of each of the following conditions on the Closing
      Date:

     

    (A) Executed
      Loan and Other Documents.
      (i)
      This Agreement, (ii) any Note requested by any Lender and (iii) all other
      documents, financing statements and instruments contemplated by such agreements,
      shall have been duly authorized and executed by the Borrower or other Persons,
      as applicable, in form and substance reasonably satisfactory to the
      Administrative Agent, and the Borrower or such other Persons, as applicable,
      shall have delivered sufficient original counterparts thereof to the
      Administrative Agent as the Administrative Agent shall reasonably
      request.

     

    (B) Closing
      Certificates; Opinions.

     

    (1) Officer’s
      Certificate.
      The
      Administrative Agent shall have received a certificate from the chief executive
      officer or chief financial officer of the Borrower, in form and substance
      reasonably satisfactory to the Administrative Agent, confirming compliance
      with
      the conditions precedent set forth in Subsections
      7.2(B)
      and
(C).

     

     

    
      
        
        

      

      
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    (2) Certificate
      of Secretary of the Borrower.
      The
      Administrative Agent shall have received a certificate of the secretary or
      assistant secretary of the Borrower certifying that attached thereto is a true
      and complete copy of the articles of incorporation of the Borrower, and all
      amendments thereto, certified as of a recent date by the appropriate
      Governmental Authority in its jurisdiction of incorporation or organization,
      that attached thereto is a true and complete copy of the bylaws of the Borrower
      as in effect on the date of such certification; that attached thereto is a
      true
      and complete copy of the resolutions of the board of directors of the Borrower,
      authorizing the borrowings contemplated hereunder, the execution, delivery
      and
      performance of this Agreement and the other Loan Documents, as applicable;
      and
      as to the incumbency and genuineness of the signature of each officer of the
      Borrower executing Loan Documents.

     

    (3) Certificates
      of Good Standing.
      The
      Administrative Agent shall have received certificates as of a recent date of
      the
      good standing of the Borrower and its Principal Subsidiaries under the laws
      of
      their respective jurisdictions of organization.

     

    (4) Opinions
      of Counsel.
      The
      Administrative Agent shall have received a favorable opinion of counsel to
      the
      Borrower addressed to the Agents and the Lenders with respect to the Borrower
      and the Loan Documents, reasonably satisfactory in form and substance to the
      Administrative Agent.

     

    (C) Consents.

     

    (1) Governmental
      and Third Party Approvals.
      The
      Borrower shall have delivered to the Administrative Agent all necessary
      approvals, authorizations and consents, if any, of all Persons, Governmental
      Authorities, including the FCC and all applicable PUCs, and courts having
      jurisdiction with respect to the execution and delivery of this Agreement and
      the other Loan Documents, and all such approvals shall be in form and substance
      reasonably satisfactory to the Administrative Agent.

     

    (2) No
      Injunction, Etc.
      No
      action, proceeding, investigation, regulation or legislation shall have been
      instituted or threatened in writing before, nor any adverse ruling received
      from, any Governmental Authority to enjoin, restrain or prohibit, or to obtain
      substantial damages in respect of, or which is related to or arises out of
      this
      Agreement or the other Loan Documents or the consummation of the transactions
      contemplated hereby or thereby, or which, as determined by the Administrative
      Agent in its reasonable discretion, would make it inadvisable to consummate
      the
      transactions contemplated by this Agreement and such other Loan
      Documents.

     

    (D) Fees,
      Expenses, Etc.
      There
      shall have been paid by the Borrower to the Administrative Agent the fees and
      other amounts set forth or referenced in Subsection
      1.4
      due and
      payable on or prior to the Closing Date, to the extent invoiced.

     

    (E) Litigation,
      Investigations, Audits, Etc.
      There
      shall be no action, suit, proceeding or investigation pending against, or,
      to
      the knowledge of the Borrower, threatened against or in any other manner
      relating adversely to, the Borrower or any of its respective properties, in
      any
      court or before any arbitrator of any kind or before or by any Governmental
      Authority (including the FCC), except (i) such as affect the telecommunications
      industry generally or (ii) as disclosed in the Borrower’s Annual Report on Form
      10-K for the fiscal year ended December 31, 2005 or the Borrower’s Quarterly
      Reports on Form 10-Q for the periods ending March 31, 2006, June 30,
      2006
      or September 30, 2006, that would reasonably be expected to have a Material
      Adverse Effect.

     

     

    
      
        
        

      

      
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    7.2 Other
      Conditions to the Term
      Loan.
      The
      obligations of the Lenders to make the Term Loan on any date during the
      Availability Period (such date, the “Funding
      Date”)
      is
      subject to the further conditions precedent set forth below.

     

    (A) The
      Administrative Agent shall have received, in accordance with the provisions
      of
Subsection 1.3,
      a
      Notice of Borrowing requesting an advance of the Term Loan.

     

    (B) The
      representations and warranties contained in Section
      5
      of this
      Agreement and elsewhere herein and in the Loan Documents shall be (and such
      request by the Borrower for the Term Loan shall constitute a representation
      and
      warranty by the Borrower that such representations and warranties are) true,
      correct and complete in all material respects on and as of the Funding Date
      to
      the same extent as though made on and as of that date (except to the extent
      such
      representations and warranties expressly relate to an earlier date, in which
      case they shall be true, correct and complete in all material respects as of
      such earlier date).

     

    (C) No
      event
      shall have occurred and be continuing or would result from the consummation
      of
      the borrowing contemplated that would constitute an Event of Default or a
      Default.

     

    (D) No
      order,
      judgment or decree of any court, arbitrator or Governmental Authority of
      competent jurisdiction shall purport to enjoin or restrain the Lenders from
      making the Term Loan.

     

    (E) Since
      December 31, 2005, there shall not have occurred any event or condition that
      has
      had or would reasonably be expected to have a Material Adverse
      Effect.

     

    (F) All
      Loan
      Documents shall be in full force and effect.

     

    SECTION
      8

     

    ASSIGNMENT
      AND PARTICIPATION;
      AGENCY
      PROVISIONS

     

    8.1 Assignments
      and Participations in Loans and
      Notes.
      (A)
General.
      The
      provisions of this Agreement shall be binding upon and inure to the benefit
      of
      the parties hereto and their respective successors and assigns permitted hereby,
      except that the Borrower may not assign or otherwise transfer any of its rights
      or obligations hereunder without the prior written consent of the Administrative
      Agent and each Lender and no Lender may assign or otherwise transfer any of
      its
      rights or obligations hereunder except (i) to an assignee in accordance with
      the
      provisions of Subsection
      8.1(B),
      (ii) by
      way of participation in accordance with the provisions of Subsection
      8.1(D),
      or
      (iii) by way of pledge or assignment of a security interest subject to the
      restrictions of Subsection
      8.1(F)
      (and any
      other attempted assignment or transfer by any party hereto shall be null and
      void). Nothing in this Agreement, expressed or implied, shall be construed
      to
      confer upon any Person (other than the parties hereto, their respective
      successors and assigns permitted hereby, Participants to the extent provided
      in
Subsection
      8.1(D)
      and, to
      the extent expressly contemplated hereby, the Related Parties of each of the
      Administrative Agent and the Lenders) any legal or equitable right, remedy
      or
      claim under or by reason of this Agreement. In the event of an assignment
      pursuant to this Subsection
      8.1,
      if a
      new Note is requested by the Person to which interests are to be assigned,
      the
      Borrower shall, upon surrender of the assigning Lender’s Note, issue a new Note
      to reflect the interests of the assigning Lender and the Person to which
      interests are to be assigned. Each Lender may furnish any information concerning
      the Borrower and its Subsidiaries in the possession of that Lender from time
      to
      time to assignees and Participants (including prospective assignees and
      Participants), subject to the provisions of Subsection
      9.13.
      Notwithstanding anything contained in this Agreement to the contrary, so long
      as
      the Requisite Lenders shall remain capable of making LIBOR Loans, no Person
      shall become a “Lender” hereunder unless such Person shall also be capable of
      making LIBOR Loans.

     

     

    
      
        
        

      

      
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             (B) Assignments
      by the Lenders.
      Any
      Lender may at any time assign to one or more assignees all or a portion of
      its
      rights and obligations under this Agreement (including all or a portion of
      its
      Term Loan Commitment and the Term Loan at the time owing to it); provided
      that any
      such assignment shall be subject to the following conditions:

    

    

      
        	 	
                (i)

              	
                Minimum
                  Amounts.

              
	 	 	 
	 	 	
                (a)

              	
                in
                  the case of an assignment of the entire remaining amount of the
                  assigning
                  Lender’s Pro Rata Share of the Term Loan Commitment and the Term Loan
                  at
                  the time owing to it or in the case of an assignment to a Lender,
                  an
                  Affiliate of a Lender or an Approved Fund, no minimum amount need
                  be
                  assigned; and

              
	 	 	 	 
	 	 	
                (b)

              	
                in
                  any case not described in Subsection
                  8.1(B)(i)(a),
                  the aggregate amount of the Term Loan Commitment (which for this
                  purpose
                  includes the Term Loan outstanding thereunder) or, if the Term
                  Loan
                  Commitment is not then in effect, the principal outstanding balance
                  of the
                  Term Loan of the assigning Lender subject to each such assignment
                  (determined as of the date the Assignment and Assumption with respect
                  to
                  such assignment is delivered to the Administrative Agent or, if
                  an
                  “Effective Date” is specified in the Assignment and Assumption, as of the
                  Effective Date) shall not be less than $5,000,000, in the case
                  of any
                  assignment unless each of the Administrative Agent and, so long
                  as no
                  Event of Default has occurred and is continuing, the Borrower otherwise
                  consents (each such consent not to be unreasonably withheld or
                  delayed).

              
	 	 	 	 
	 	
                (ii)

              	
                Proportionate
                  Amounts.
                  Each partial assignment shall be made as an assignment of a proportionate
                  part of all the assigning Lender’s rights and obligations under this
                  Agreement with respect to the Term Loan or the Term Loan Commitment
                  assigned.

              
	 	 	 
	 	
                (iii)

              	
                Required
                  Consents.
                  No consent shall be required for any assignment except to the extent
                  required by Subsection
                  8.1(B)(i)(b)
                  and, in addition:

              

      

      
 

      
        
          
          

        

        
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                (a)

              	
                the
                  consent of the Borrower (such consent not to be unreasonably withheld
                  or
                  delayed) shall be required unless (x) an Event of Default has occurred
                  and
                  is continuing at the time of such assignment or (y) such assignment
                  is to
                  a Lender, an Affiliate of a Lender or an Approved Fund;
                  and
                  provided that assignments by CoBank to institutions chartered under
                  the
                  Farm Credit System shall not require written consent of the Borrower;
                  and

              
	 	 	 	 
	 	 	
                (b)

              	
                the
                  consent of the Administrative Agent (such consent not to be unreasonably
                  withheld or delayed) shall be required for assignments in respect
                  of the
                  Term Loan Facility if such assignment is to a Person that is not
                  a Lender
                  with a Pro Rata Share of the Term Loan Commitment or the Term Loan,
                  an
                  Affiliate of such Lender or an Approved Fund with respect to such
                  Lender.

              
	 	 	 	 
	 	
                (iv)

              	
                Assignment
                  and Assumption.
                  The parties to each assignment shall execute and deliver to the
                  Administrative Agent an Assignment and Assumption, together with
                  a
                  processing and recordation fee of $3,500, and the assignee, if
                  it is not a
                  Lender, shall deliver to the Administrative Agent an Administrative
                  Questionnaire.

              
	 	 	 
	 	
                (v)

              	
                No
                  Assignment to the Borrower.
                  No such assignment shall be made to the Borrower or any of the
                  Borrower’s
                  Affiliates or Subsidiaries.

              
	 	 	 
	 	
                (vi)

              	
                No
                  Assignment to Natural Persons.
                  No such assignment shall be made to a natural
                  person.

              

      

       

    

    Subject
      to acceptance and recording thereof by the Administrative Agent pursuant to
      Subsection
      8.1(C),
      from
      and after the effective date specified in each Assignment and Assumption, the
      assignee thereunder shall be a party to this Agreement and, to the extent of
      the
      interest assigned by such Assignment and Assumption, have the rights and
      obligations of a Lender under this Agreement, and the assigning Lender
      thereunder shall, to the extent of the interest assigned by such Assignment
      and
      Assumption, be released from its obligations under this Agreement (and, in
      the
      case of an Assignment and Assumption covering all of the assigning Lender’s
      rights and obligations under this Agreement, such Lender shall cease to be
      a
      party hereto) but shall continue to be entitled to the benefits of Subsections
      1.4(D),
      1.11,
      1.13,
      1.14,
      9.1,
      9.14
      and
9.15
      with
      respect to facts and circumstances occurring prior to the effective date of
      such
      assignment. Any assignment or transfer by a Lender of rights or obligations
      under this Agreement that does not comply with this Subsection
      8.1(B)
      shall be
      treated for purposes of this Agreement as a sale by such Lender of a
      participation in such rights and obligations in accordance with Subsection
      8.1(D).

    

    (C) Register.
      The
      Administrative Agent, acting solely for this purpose as an agent of the
      Borrower, shall maintain at one of its offices in Denver, Colorado a copy of
      each Assignment and Assumption delivered to it and a register for the
      recordation of the names and addresses of the Lenders, and the Pro Rata Share
      of
      the Term Loan Commitment of, and principal amounts of the Term Loan owing to,
      each Lender pursuant to the terms hereof from time to time (the “Register”).
      The
      entries in the Register shall be conclusive, and the Borrower, the
      Administrative Agent and the Lenders may treat each Person whose name is
      recorded in the Register pursuant to the terms hereof as a Lender hereunder
      for
      all purposes of this Agreement, notwithstanding notice to the contrary. The
      Register shall be available for inspection by the Borrower and any Lender,
      at
      any reasonable time and from time to time upon reasonable prior
      notice.

    

     

    
      
        
        

      

      
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    (D) Participations.
      Any
      Lender may at any time, without the consent of, or notice to, the Borrower
      or
      the Administrative Agent, sell participations to any Person (other than a
      natural person or the Borrower or any of the Borrower’s Affiliates or
      Subsidiaries) (each, a “Participant”)
      in all
      or a portion of such Lender’s rights and/or obligations under this Agreement
      (including all or a portion of its Pro Rata Share of the Term Loan Commitment
      and/or the Loans owing to it); provided
      that (i)
      such Lender’s obligations under this Agreement shall remain unchanged, (ii) such
      Lender shall remain solely responsible to the other parties hereto for the
      performance of such obligations and (iii) the Borrower, the Administrative
      Agent
      and the Lenders shall continue to deal solely and directly with such Lender
      in
      connection with such Lender’s rights and obligations under this Agreement.
      CoBank reserves the right to assign or sell participations in all or any part
      of
      its Pro Rata Share of the Term Loan Commitment and the term Loan on a
      non-patronage basis.

    

    Any
      agreement or instrument pursuant to which a Lender sells such a participation
      shall provide that such Lender shall retain the sole right to enforce this
      Agreement and to approve any amendment, modification or waiver of any provision
      of this Agreement; provided
      that
      such agreement or instrument may provide that such Lender will not, without
      the
      consent of the Participant, agree to any amendment, modification or waiver
      described in Subsection
      9.2
      relating
      to amendments requiring unanimous consent of the Lenders that affects such
      Participant. Subject to Subsection
      8.1(E),
      the
      Borrower agrees that each Participant shall be entitled to the benefits of
      Subsections
      1.11,
      1.13
      and
1.14
      to the
      same extent as if it were a Lender and had acquired its interest by assignment
      pursuant to Subsection
      8.1(B).
      To the
      extent permitted by law, each Participant also shall be entitled to the benefits
      of Subsection
      6.6
      as
      though it were a Lender, provided such Participant agrees to be subject to
      Subsection
      6.6
      as
      though it were a Lender.

    

    Any
      bank
      that is a member of the Farm Credit System that (i) has purchased a
      participation in the minimum amount of $5,000,000, (ii) if the Administrative
      Agent is other than CoBank, has been designated by written notice to the
      Administrative Agent as being entitled to be accorded the right of a voting
      participant, and (iii) receives the prior written consent of the
      Administrative Agent (such consent being required only if the Administrative
      Agent is other than CoBank) and of the Borrower (such consent being required
      only if no Event of Default then exists and is continuing and only as to members
      not a Participant as of the Closing Date) to become a voting Participant, shall
      be entitled to vote, and the voting rights of the selling Lender shall be
      correspondingly reduced, on a dollar-for-dollar basis, as if such participant
      were a Lender, on any matter requiring or allowing a Lender to provide or
      withhold its consent, or to otherwise vote on any proposed action.

    

    (E) Limitations
      upon Participant Rights.
      A
      Participant shall not be entitled to receive any greater payment under
Subsections
      1.11,
      1.13
      and
1.14
      than the
      applicable Lender would have been entitled to receive with respect to the
      participation sold to such Participant, unless the sale of the participation
      to
      such Participant is made with the Borrower’s prior written consent. A
      Participant that would be a Foreign Lender if it were a Lender shall not be
      entitled to the benefits of Subsection
      1.13
      unless
      the Borrower is notified of the participation sold to such Participant and
      such
      Participant agrees, for the benefit of the Borrower, to comply with Subsection
      1.13(B)
      as
      though it were a Lender.

     

     

    
      
        
        

      

      
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    (F) Certain
      Pledges.
      Any
      Lender may at any time pledge or assign a security interest in all or any
      portion of its rights under this Agreement to secure obligations of such Lender,
      including any pledge or assignment to secure obligations to a Federal Reserve
      Bank; provided
      that no
      such pledge or assignment shall release such Lender from any of its obligations
      hereunder or substitute any such pledgee or assignee for such Lender as a party
      hereto.

    

    8.2 Agents.

     

    (A) Appointment.
      Each
      Lender hereby irrevocably appoints and authorizes CoBank, as the Administrative
      Agent and as the Lead Arranger, to act as the Administrative Agent, and the
      Lead
      Arranger, hereunder and under any other Loan Document with such powers as are
      specifically delegated to such Agent by the terms of this Agreement and any
      other Loan Document, together with such other powers as are reasonably
      incidental thereto. The Administrative Agent is authorized and empowered to
      amend, modify or waive any provisions of this Agreement or the other Loan
      Documents on behalf of the Lenders, subject to the requirement that the consent
      of certain Lenders or all Lenders, as appropriate, be obtained in certain
      instances as provided in Subsections
      8.3
      and
9.2.
      CoBank
      hereby agrees to act as the Administrative Agent on the express conditions
      contained in this Subsection
      8.2.
      The
      provisions of this Subsection 8.2
      are
      solely for the benefit of the Agents and the Lenders, and the Borrower shall
      have no rights as a third party beneficiary of any of the provisions hereof.
      In
      performing its functions and duties under this Agreement, the Agents shall
      act
      solely as the Administrative Agent, or the Lead Arranger, as applicable, of
      the
      Lenders and no Agent shall assume or be deemed to have assumed any obligation
      toward or relationship of agency or trust with or for the Borrower or its
      respective Affiliates. Each Agent may execute any of its duties under this
      Agreement or any other Loan Document by or through agents or attorneys-in-fact
      and shall not be responsible for the negligence or misconduct of any agents
      or
      attorneys-in-fact that it selects with reasonable care.

     

    (B) Nature
      of Duties.
      The
      duties of the Agents shall be mechanical and administrative in nature. None
      of
      the Agents shall have by reason of this Agreement a fiduciary relationship
      in
      respect of any Lender. Nothing in this Agreement or any of the Loan Documents,
      express or implied, is intended to or shall be construed to impose upon the
      Agents any obligations in respect of this Agreement or any of the Loan Documents
      except as expressly set forth herein or therein. Each Lender expressly
      acknowledges that none of the Agents nor any of their respective officers,
      directors, employees, agents, attorneys-in-fact or Affiliates have made any
      representation or warranty to it and that no act by any Agent or any such Person
      hereafter taken, including any review of the affairs of the Borrower, shall
      be
      deemed to constitute any representation or warranty by any Agent to any Lender.
      Each Lender represents to the Administrative Agent that (i) it has,
      independently and without reliance upon the Agents or any other Lender and
      based
      on such documents and information as it has deemed appropriate, made its own
      appraisal of and investigation into the business, prospects, operations,
      properties, financial and other condition and creditworthiness of the Borrower
      and made its own decision to enter into this Agreement and extend credit to
      the
      Borrower hereunder, and (ii) it will, independently and without reliance upon
      the Agents or any other Lender and based on such documents and information
      as it
      shall deem appropriate at the time, continue to make its own credit analysis,
      appraisals and decisions in taking or not taking action hereunder and under
      the
      other Loan Documents and to make such investigation as it deems necessary to
      inform itself as to the business, prospects, operations, properties, financial
      and other condition and creditworthiness of the Borrower. The Agents shall
      have
      no duty or responsibility, either initially or on a continuing basis, to provide
      any Lender with any credit or other information with respect thereto (other
      than
      as expressly required herein). If either Agent seeks the consent or approval
      of
      any Lender to the taking or refraining from taking of any action hereunder,
      then
      such Agent shall send notice thereof to each Lender. Each Agent shall promptly
      notify each Lender any time that Requisite Lenders have instructed such Agent
      to
      act or refrain from acting pursuant hereto.

     

     

    
      
        
        

      

      
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    (C) Rights,
      Exculpation, Etc.
      Each of
      the Agents, their respective Affiliates and any of their or their Affiliates’
respective officers, directors, employees, agents or attorneys-in-fact shall
      not
      be liable to any Lender for any action taken or omitted by them hereunder or
      under any of the Loan Documents, or in connection herewith or therewith, except
      that each such entity shall be liable with respect to its own gross negligence,
      bad faith or willful misconduct. No Agent shall be liable for any apportionment
      or distribution of payments made by it in good faith and if any such
      apportionment or distribution is subsequently determined to have been made
      in
      error, the sole recourse of any Lender to whom payment was due but not made
      shall be to recover from other Lenders any payment in excess of the amount
      to
      which they are determined to be entitled (and such other Lenders hereby agree
      to
      return to such Lender any such erroneous payments received by them). In
      performing its functions and duties hereunder, each Agent shall exercise the
      same care which it would in dealing with loans for its own account, but the
      Agents shall not be responsible to any Lender for any recitals, statements,
      representations or warranties herein or for the execution, effectiveness,
      genuineness, validity, enforceability, collectibility or sufficiency of this
      Agreement or any of the Loan Documents or the transactions contemplated thereby,
      or for the financial condition of the Borrower. Each Agent may at any time
      request instructions from the Lenders with respect to any actions or approvals
      which by the terms of this Agreement or of any of the Loan Documents such Agent
      is permitted or required to take or to grant, and if such instructions are
      promptly requested, such Agent shall be absolutely entitled to refrain from
      taking any action or to withhold any approval and shall not be under any
      liability whatsoever to any Person for refraining from any action or withholding
      any approval under any of the Loan Documents (i) if such action or omission
      would, in the reasonable opinion of such Agent, violate any Applicable Law
      or
      any provision of this Agreement or any other Loan Document, or (ii) until it
      shall have received such instructions from Requisite Lenders or all of the
      Lenders, as applicable. Without limiting the foregoing, no Lender shall have
      any
      right of action whatsoever against either Agent as a result of such Agent acting
      or refraining from acting under this Agreement, the Notes, or any of the other
      Loan Documents in accordance with the instructions of Requisite Lenders, except
      in connection with its own gross negligence, bad faith or willful
      misconduct.

     

    (D) Reliance.
      Each
      Agent shall be entitled to rely, and shall be fully protected in relying, upon
      any written or oral notices, statements, certificates, orders or other documents
      or any telephone message or other communication (including any writing, telex,
      telecopy or telegram) believed by it in good faith to be genuine and correct
      and
      to have been signed, sent or made by the proper Person, and with respect to
      all
      matters pertaining to this Agreement or any of the Loan Documents and its duties
      hereunder or thereunder, upon advice of counsel selected by it in connection
      with the preparation, negotiation, execution, delivery, administration,
      amendment, modification, waiver or enforcement (whether through negotiations,
      legal proceedings or otherwise) of, or legal advice in respect of rights or
      responsibilities under, this Agreement or any of the other Loan
      Documents.

     

     

    
      
        
        

      

      
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    (E) Indemnification.
      The
      Lenders will reimburse and indemnify each Agent and their respective Affiliates
      and their Affiliates’ officers, directors, employees, agents, and
      attorneys-in-fact (collectively, “Representatives”),
      on
      demand (to the extent not actually reimbursed under Subsection
      9.1,
      but
      without limiting the obligations of the Borrower under such Subsection
      9.1)
      for and
      against any and all liabilities, obligations, losses, damages, penalties,
      actions, judgments, suits, costs, expenses (including, without limitation,
      attorneys’ fees and expenses), advances or disbursements of any kind or nature
      whatsoever which may be imposed on, incurred by, or asserted against any Agent
      or their respective Representatives (i) in any way relating to or arising out
      of
      this Agreement or any of the Loan Documents or any action taken or omitted
      by
      such Agent or its Representatives under this Agreement or any of the Loan
      Documents, and (ii) in connection with the preparation, negotiation, execution,
      delivery, administration, amendment, modification, waiver or enforcement
      (whether through negotiations, legal proceedings or otherwise) of, or legal
      advice in respect of rights or responsibilities under, this Agreement or any
      of
      the other Loan Documents in proportion to each Lender’s Pro Rata Share;
provided,
      that no
      Lender shall be liable for any portion of such liabilities, obligations, losses,
      damages, penalties, actions, judgments, suits, costs, expenses, advances or
      disbursements resulting from such Agent’s or its Representatives’ gross
      negligence, bad faith or willful misconduct. If any indemnity furnished to
      any
      Agent or their respective Representatives for any purpose shall, in the opinion
      of such Agent, be insufficient or become impaired, such Agent may call for
      additional indemnity and cease, or not commence, to do the acts indemnified
      against until such additional indemnity is furnished. The obligations of the
      Lenders under this Subsection
      8.2(E)
      shall
      survive the payment in full of the Obligations and the termination of this
      Agreement.

     

    (F) The
      Administrative Agent and the Lead Arranger Individually.
      With
      respect to its obligations under the Term Loan Commitment, the Loans made by
      it,
      and the Notes issued to it, each of the Administrative Agent and the Lead
      Arranger shall have and may exercise the same rights and powers hereunder and
      is
      subject to the same obligations and liabilities as and to the extent set forth
      herein for any other Lender. The terms “Lenders”
or
      “Requisite
      Lenders”
or
      any
      similar terms shall, unless the context clearly otherwise indicates, include
      each of the Administrative Agent and the Lead Arranger, in its individual
      capacity as a Lender or as one of the Requisite Lenders. Each of the
      Administrative Agent and the Lead Arranger may lend money to, and generally
      engage in any kind of banking, trust or other business with, the Borrower as
      if
      it were not acting as an Agent pursuant hereto.

     

    (G) Notice
      of Default.
      No Agent
      shall be required to make any inquiry concerning either the performance or
      observance of any of the terms, provisions or conditions of this Agreement
      or
      any of the Loan Documents or the financial condition of the Borrower or any
      of
      its Subsidiaries, or the existence or possible existence of any Default or
      Event
      of Default. No Agent shall be deemed to have knowledge or notice of the
      occurrence of any Default or Event of Default unless such Agent shall have
      received written notice from the Borrower or a Lender referring to this
      Agreement, describing such Default or Event of Default and stating that such
      notice is a “notice of default.” In the event that an Agent receives such a
      notice, such Agent will give notice thereof to the Lenders as soon as reasonably
      practicable; provided,
      that if
      any such notice has also been furnished to the Lenders, such Agent shall have
      no
      obligation to notify the Lenders with respect thereto. The Agents shall (subject
      to this Subsection
      8.2)
      take
      such action with respect to such Default or Event of Default as shall reasonably
      be directed by Requisite Lenders; provided,
      further,
      that,
      unless and until the Agents shall have received such directions, the Agents
      may
      (but shall not be obligated to) take such action, or refrain from taking such
      action, with respect to such Default or Event of Default as they shall deem
      advisable and in the best interests of the Lenders.

     

     

    
      
        
        

      

      
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    (H) Successor
      Agents.

     

    (1) Resignation.
      Any
      Agent may resign from the performance of all its agency functions and duties
      hereunder at any time by giving at least 30 Business Days’ prior written notice
      to the Borrower and the Lenders. Such resignation shall take effect upon the
      acceptance by a successor Agent of appointment pursuant to clause (2) below
      or
      as otherwise provided below.

     

    (2) Appointment
      of Successor.
      Upon
      any such notice of resignation pursuant to clause (1) above, Requisite Lenders
      shall (and if no Event of Default or Default shall have occurred and be
      continuing, upon receipt of the Borrower’s prior consent, which shall not be
      unreasonably withheld), appoint a successor Agent from among the Lenders or
      another financial institution. If a successor Agent shall not have been so
      appointed within the 30 Business Day period referred to in Subsection
      8(H)(1),
      the
      retiring Agent, upon notice to the Borrower, shall then appoint a successor
      Agent from among the Lenders who shall serve as Agent until such time, if any,
      as Requisite Lenders, upon receipt of the Borrower’s prior written consent (if
      required under the first sentence of this paragraph), which shall not be
      unreasonably withheld, appoint a successor Agent as provided above.

     

    (3) Successor
      Agent.
      Upon
      the acceptance of any appointment as Agent under the Loan Documents by a
      successor Agent, such successor Agent shall thereupon succeed to and become
      vested with all the rights, powers, privileges and duties of the retiring Agent,
      and the retiring Agent shall be discharged from its duties and obligations
      under
      the Loan Documents. After any retiring Agent’s resignation as Agent under the
      Loan Documents, the provisions of this Subsection
      8.2
      shall
      inure to its benefit as to any actions taken or omitted to be taken by it while
      it was Agent under the Loan Documents.

     

    8.3 Amendments,
      Consents and Waivers for Certain
      Actions.

     

    (1) Except
      as
      otherwise provided in this Agreement (including this Subsection 8.3
      and
Subsection
      9.2)
      or any
      other Loan Document, the consent of Requisite Lenders and the Borrower will
      be
      required to amend, modify, terminate, or waive any provision of this Agreement
      or any of the other Loan Documents.

     

    (2) In
      the
      event either Agent requests the consent of a Lender and does not receive a
      written consent or denial thereof within ten Business Days after such Lender’s
      receipt of such request, then such Lender will be deemed to have denied the
      giving of such consent.

     

     

    
      
        
        

      

      
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    8.4 Disbursement
      of Funds.
      The
      Administrative Agent shall advise each Lender by telephone or telecopy of the
      amount of such Lender’s Pro Rata Share of any Loan requested by the Borrower no
      later than 11:00 a.m. (Denver, Colorado time) at least two Business Days
      immediately preceding the Funding Date applicable thereto (in the case of LIBOR
      Loans), otherwise on the Business Day immediately preceding the Funding Date
      applicable thereto, and each such Lender shall pay the Administrative Agent
      such
      Lender’s Pro Rata Share of such requested Loan, in same day funds, by wire
      transfer to the Administrative Agent’s account by no later than 1:00 p.m.
      (Denver, Colorado time) on such Funding Date. If any Lender fails to pay the
      amount of its Pro Rata Share forthwith upon the Administrative Agent’s demand,
      the Administrative Agent shall promptly notify the Borrower, and the
      Administrative Agent shall disburse to the Borrower, by wire transfer of
      immediately available funds, that portion of such Loan as to which the
      Administrative Agent has received funds. In such event, the Administrative
      Agent
      may, on behalf of any Lender not timely paying the Administrative Agent,
      disburse funds to the Borrower for Loans requested, subject to the provisions
      of
Subsection
      8.5(B).
      Each
      such Lender shall reimburse the Administrative Agent on demand for all funds
      disbursed on its behalf by the Administrative Agent. Nothing in this
Subsection
      8.4
      or
      elsewhere in this Agreement or the other Loan Documents, including the
      provisions of Subsection
      8.5,
      shall
      be deemed to require the Administrative Agent (or any other Lender) to advance
      funds on behalf of any Lender or to relieve any Lender from its obligation
      to
      fulfill its commitments hereunder or to prejudice any rights that the
      Administrative Agent or the Borrower may have against any Lender as a result
      of
      any default by such Lender hereunder.

     

    8.5 Disbursements
      of Advances; Payments.

     

    (A) Pro
      Rata Treatment; Application.
      Upon
      receipt by the Administrative Agent of each payment from the Borrower hereunder,
      other than as described in the succeeding sentence, the Administrative Agent
      shall promptly credit each Lender’s account with its Pro Rata Share of such
      payment in accordance with such Lender’s Pro Rata Share and shall promptly wire
      advice of the amount of such credit to each Lender. Each payment to the
      Administrative Agent of its fees shall be made in like manner, but for the
      account of the Administrative Agent.

     

    (B) Availability
      of Lender’s Pro Rata Share.

     

    (1) Unless
      the Administrative Agent has been notified by a Lender prior to a Funding Date
      of such Lender’s intention not to fund its Pro Rata Share of the Loan amount
      requested by the Borrower, and the Administrative Agent has given notice
      pursuant to Subsection
      8.4,
      the
      Administrative Agent may assume that such Lender will make such amount available
      to the Administrative Agent on the Funding Date. If such amount is not, in
      fact,
      made available to the Administrative Agent by such Lender when due, and the
      Administrative Agent disburses funds to the Borrower on behalf of such Lender,
      such Lender and the Borrower severally agree to repay such amount to the
      Administrative Agent, without set-off, counterclaim or deduction of any kind,
      with interest thereon at the rate per annum then applicable to such
      Loan.

     

     

    
      
        
        

      

      
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    (2) Nothing
      contained in this Subsection
      8.5(B)
      will be
      deemed to relieve a Lender of its obligation to fulfill its commitments or
      to
      prejudice any rights the Administrative Agent or the Borrower may have against
      such Lender as a result of a default by such Lender under this
      Agreement.

     

    (C) Return
      of Payments.

     

    (1) If
      the
      Administrative Agent pays an amount to a Lender under this Agreement in the
      belief or expectation that a related payment has been or will be received by
      the
      Administrative Agent from the Borrower and such related payment is not received
      by the Administrative Agent, then the Administrative Agent will be entitled
      to
      recover such amount from such Lender without set-off, counterclaim or deduction
      of any kind.

     

    (2) If
      the
      Administrative Agent determines at any time that any amount received by the
      Administrative Agent under this Agreement must be returned to the Borrower
      or
      paid to any other Person pursuant to any solvency law or otherwise, then,
      notwithstanding any other term or condition of this Agreement, the
      Administrative Agent will not be required to distribute any portion thereof
      to
      any Lender. In addition, each Lender will repay to the Administrative Agent
      on
      demand any portion of such amount that the Administrative Agent has distributed
      to such Lender, together with interest at such rate, if any, as the
      Administrative Agent is required to pay to the Borrower or such other Person,
      without set-off, counterclaim or deduction of any kind.

     

    SECTION
      9

     

    MISCELLANEOUS

     

    9.1 Indemnities.
      The
      Borrower agrees to indemnify, pay, and hold each Agent and each Lender and
      their
      respective Affiliates and the respective officers, directors, employees, agents,
      and attorneys of each Agent, Lender and their respective Affiliates (the
“Indemnitees”)
      harmless from and against any and all liabilities, obligations, losses
      (including reasonable fees of attorneys and consultants), damages, penalties,
      actions, judgments, suits and claims of any kind or nature whatsoever that
      may
      be imposed on, incurred by, or asserted against the Indemnitee as a result
      of
      each Agent and each Lender being a party to this Agreement or otherwise in
      connection with this Agreement, any of the other Loan Documents or any of the
      transactions contemplated hereby or thereby; provided,
      that
      the Borrower shall have no obligation to an Indemnitee hereunder with respect
      to
      liabilities arising from the gross negligence or willful misconduct of that
      Indemnitee, in each such case as determined by a final non appealable judgment
      of a court of competent jurisdiction. This Subsection
      9.1
      and all
      indemnification provisions contained within any other Loan Document shall
      survive the termination of this Agreement.

     

     

    
      
        
        

      

      
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    9.2 Amendments
      and Waivers.
      Except
      as otherwise provided herein, no amendment, modification, termination or waiver
      of any provision of this Agreement, the Notes or any of the other Loan
      Documents, or consent to any departure by the Borrower therefrom, shall in
      any
      event be effective unless the same shall be in writing and signed by the
      Borrower and the Requisite Lenders (or the Administrative Agent, if expressly
      set forth herein, in any Note or in any other Loan Document); provided,
      that,
      notwithstanding any other provision of this Agreement to the contrary and
      except, with respect to an assignee or assignor hereunder, to the extent
      permitted by any applicable Assignment and Assumption, no amendment,
      modification, termination or waiver shall, unless in writing and signed by
      the
      Borrower and all the Lenders affected thereby, do any of the following: (i)
      increase any Lender’s Pro Rata Share of the Term Loan Commitment or the Term
      Loan or change a pro rata payment of any Lender; (ii) reduce the principal
      of,
      rate of interest on or fees payable with respect to the Term Loan made by such
      Lender; (iii) extend the Term Loan Maturity Date or extend any other fixed
      date
      on which any Obligation is to be paid; (iv) change the percentage of the
      Lenders which shall be required for the Lenders or any of them to take any
      action hereunder; (v) amend or waive this Subsection
      9.2
      or the
      definitions of the terms used in this Subsection
      9.2
      insofar
      as the definitions affect the substance of this Subsection
      9.2;
      or (vi)
      consent to the assignment, delegation or other transfer by the Borrower of
      any
      of its rights and obligations under any Loan Document; and provided,
      further,
      that no
      amendment, modification, termination or waiver affecting the rights or duties
      of
      the Administrative Agent under any Loan Document shall in any event be
      effective, unless in writing and signed by the Administrative Agent in addition
      to the Lenders required hereinabove to take such action. Each amendment,
      modification, termination or waiver shall be effective only in the specific
      instance and for the specific purpose for which it was given. No amendment,
      modification, termination or waiver shall be required for the Administrative
      Agent to take additional collateral pursuant to any Loan Document. No amendment,
      modification, termination or waiver of any provision of any Note shall be
      effective without the written concurrence of the holder of that Note. No notice
      to or demand on the Borrower or any other Person in any case shall entitle
      the
      Borrower or such Person to any other or further notice or demand in similar
      or
      other circumstances. Any amendment, modification, termination, waiver or consent
      effected in accordance with this Subsection
      9.2
      shall be
      binding upon each holder of the Notes at the time outstanding and each future
      holder of the Notes.

     

    9.3 Notices.
      Any
      required notice or other communication shall be in writing addressed to the
      respective party as set forth below and may be personally delivered, telecopied,
      sent by overnight courier service or U.S. mail (except, to the extent that
      the
      Borrower and the Administrative Agent shall expressly agree, specified notices
      and communications may be delivered or furnished by electronic communications
      (including emails and internet communications) pursuant to procedures agreed
      to
      between the Borrower and the Administrative Agent) and shall be deemed to have
      been given: (i) if delivered in person, when delivered; (ii) if delivered by
      telecopy, on the date of transmission if transmitted on a Business Day before
      2:00 p.m. (Denver, Colorado time) and otherwise on the Business Day next
      succeeding the date of transmission; (c) if delivered by overnight courier,
      two
      days after delivery to the courier properly addressed; or (d) if delivered
      by
      U.S. mail, four Business Days after deposit with postage prepaid and proper
      address.

     

    
      	 	
              Notices
                shall be addressed as follows:

            

    

    

    
      	 	
              If
                to the Borrower:

            	
              Citizens
                Communications Company

            
	 	 	
              3
                High Ridge Park

            
	 	 	
              Stamford,
                CT 06905

            
	 	 	
              Attn:
                Treasurer

            
	 	 	
              Fax:
                (203) 614-4602

            

    

    

     

     

    
      
        
        

      

      
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              With
                a copy to:

            	
              Citizens
                Communications Company

            
	 	 	
              3
                High Ridge Park

            
	 	 	
              Stamford,
                CT 06905

            
	 	 	
              Attn:
                General Counsel

            
	 	 	
              Fax:
                (203) 614-4651

            

    

    

    
      	 	
              If
                to a Lender

            	 
	 	
              or
                any Agent:

            	
              To
                the address set forth on the signature page hereto or in the applicable
                Assignment and Assumption

            
	 	 	 

    

     

          9.4 Failure
      or Indulgence Not Waiver; Remedies
      Cumulative.
      No
      failure or delay on the part of any Agent or any Lender to exercise, nor any
      partial exercise of, any power, right or privilege hereunder or under any other
      Loan Documents shall impair such power, right, or privilege or be construed
      to
      be a waiver of any Default or Event of Default. All rights and remedies existing
      hereunder or under any other Loan Document are cumulative to and not exclusive
      of any rights or remedies otherwise available.

     

    9.5 Marshaling;
      Payments Set Aside.
      Neither
      any Agent nor any Lender shall be under any obligation to marshal any assets
      in
      payment of any or all of the Obligations. To the extent that the Borrower or
      any
      other Person makes payment(s) or the Administrative Agent enforces its Liens
      or
      any Agent or any Lender exercises its right of set-off, and such payment(s)
      or
      the proceeds of such enforcement or set-off is subsequently invalidated,
      declared to be fraudulent or preferential, set aside, or required to be repaid
      by anyone (whether by demand, litigation, settlement or otherwise), then to
      the
      extent of such recovery, the Obligations or part thereof originally intended
      to
      be satisfied, and all Liens, rights and remedies therefor, shall be revived
      and
      continued in full force and effect as if such payment had not been made or
      such
      enforcement or set-off had not occurred.

     

    9.6 Severability.
      The
      invalidity, illegality, or unenforceability in any jurisdiction of any provision
      under the Loan Documents shall not affect or impair the remaining provisions
      in
      the Loan Documents or any such invalid, unenforceable or illegal provision
      in
      any jurisdiction in which it is not invalid, unenforceable or
      illegal.

     

           
9.7 The
      Lenders’ Obligations Several;
      Independent Nature of the Lenders’ Rights.
      The
      obligation of each Lender hereunder is several and not joint and no Lender
      shall
      be responsible for the obligation or commitment of any other Lender hereunder.
      In the event that any Lender at any time should fail to make a Loan as herein
      provided, the Lenders, or any of them, at their sole option, may make the
      Loan that was to have been made by the Lender so failing to make such Loan.
      Nothing contained in any Loan Document and no action taken by any Agent or
      any
      Lender pursuant hereto or thereto shall be deemed to constitute the Lenders
      to
      be a partnership, an association, a joint venture or any other kind of entity.
      The amounts payable at any time hereunder to each Lender shall be a separate
      and
      independent debt.

     

    9.8 Headings.
      Section
      and Subsection headings are included herein for convenience of reference only
      and shall not constitute a part of this Agreement for any other purposes or
      be
      given substantive effect.

     

     

    
      
        
        

      

      
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    9.9 Applicable
      Law.
      THIS
      AGREEMENT SHALL BE GOVERNED BY AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE
      WITH THE INTERNAL LAWS OF THE STATE OF COLORADO, WITHOUT REGARD TO CONFLICTS
      OF
      LAW PRINCIPLES THAT REQUIRE OR PERMIT APPLICATION OF THE LAWS OF ANY OTHER
      STATE
      OR JURISDICTION.

     

    9.10 Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective successors and assigns except that the Borrower may not
      assign its respective rights or obligations hereunder without the written
      consent of all the Lenders.

     

    9.11 No
      Fiduciary Relationship.
      No
      provision in the Loan Documents and no course of dealing between the parties
      shall be deemed to create any fiduciary duty owing to the Borrower or its
      Subsidiaries or Affiliates by any Agent or any Lender.

     

    9.12 Construction.
      Each of
      the Agents, Lenders and the Borrower acknowledges that each of them has had
      the
      benefit of legal counsel of its own choice and has been afforded an opportunity
      to review the Loan Documents with its legal counsel and that the Loan Documents
      shall be constructed as if jointly drafted by each of the Agents, Lenders and
      the Borrower.

     

    9.13 Confidentiality.
      The
      Agents and the Lenders agree to hold any confidential information sufficiently
      identified as being confidential or proprietary that they may receive from
      or on
      behalf of the Borrower or any of its Subsidiaries pursuant to this Agreement
      in
      confidence, except for disclosure: (i) on a confidential basis, to directors,
      officers, employees, agents or legal counsel, independent public accountants
      and
      other professional advisors of the Agents or the Lenders or their respective
      Affiliates in connection with the transactions contemplated hereby; (ii) to
      regulatory officials having jurisdiction over the Agents or the Lenders or
      their
      Affiliates as required by such officials; (iii) as required by Applicable Law
      or
      legal process; (iv) in connection with any legal proceeding between or among
      the
      Agents or the Lenders and the Borrower or its Subsidiaries (provided
      that, in
      the event the Agents or the Lenders are so required to disclose such
      confidential information pursuant to clauses
      (iii)
      or
(iv)
      of this
Subsection 9.13,
      the
      Agents or the Lenders shall promptly notify the Borrower (unless legally
      prohibited from so doing), so that the Borrower or any of its Subsidiaries
      may
      seek, at their sole cost and expense, a protective order or other appropriate
      remedy); or (v) to another Person in connection with a disposition or proposed
      disposition to that Person of all or part of that Lender’s interests hereunder
      or a participation interest in its Pro Rata Share, provided
      that
      such disclosure is made subject to an appropriate confidentiality agreement
      on
      terms substantially similar to this Subsection
      9.13.
      For
      purposes of the foregoing, “confidential information” shall mean all information
      respecting the Borrower or its Subsidiaries, other than (A) information
      previously filed by the Borrower or its respective Affiliates or Subsidiaries
      with any Governmental Authority and available to the public or otherwise made
      available to third parties on a non-confidential basis, (B) information
      previously published in any public medium from a source other than, directly
      or
      indirectly, the Agents or the Lenders in violation of this Subsection
      9.13
      and (C)
      information obtained by the Agents or the Lenders from a source independent
      of
      the Borrower or its Subsidiaries. The obligations of the Agents and the Lenders
      under this Subsection
      9.13
      shall
      survive the payment in full of the Obligations and the termination of this
      Agreement.

     

     

    
      
        
        

      

      
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    9.14 Consent
      to Jurisdiction and Service of
      Process.
      (A) EACH
      OF THE BORROWER, THE AGENTS AND THE LENDERS HEREBY IRREVOCABLY SUBMITS TO THE
      NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL COURT OR STATE COURT
      IN
      THE STATE OF COLORADO, HAVING SUBJECT MATTER JURISDICTION OVER ANY ACTION OR
      PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENTS. EACH OF THE
      BORROWER, THE AGENTS AND THE LENDERS HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS
      IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY
      SUCH
      COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS
      TO
      THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT,
      PERSONAL JURISDICTION OF ANY SUCH COURT OR THAT SUCH COURT IS AN INCONVENIENT
      FORUM. NOTHING HEREIN SHALL LIMIT THE RIGHT OF ANY PARTY HERETO TO BRING
      PROCEEDINGS AGAINST ANY OTHER PARTY HERETO IN THE COURTS OF ANY OTHER
      JURISDICTION.

     

    (B) EACH
      OF
      THE BORROWER, THE AGENTS AND THE LENDERS HEREBY AGREES THAT SERVICE OF THE
      SUMMONS AND COMPLAINT AND ALL OTHER PROCESS WHICH MAY BE SERVED IN ANY SUCH
      SUIT, ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING BY REGISTERED MAIL, RETURN
      RECEIPT REQUESTED, A COPY OF SUCH PROCESS TO THE BORROWER, AN AGENT OR A LENDER
      AT THE ADDRESS TO WHICH NOTICES TO THE BORROWER, SUCH AGENT AND SUCH LENDER
      ARE
      THEN TO BE SENT PURSUANT TO SUBSECTION
      9.3
      AND THAT
      PERSONAL SERVICE OF PROCESS SHALL NOT BE REQUIRED. NOTHING HEREIN SHALL BE
      CONSTRUED TO PROHIBIT SERVICE OF PROCESS BY ANY OTHER METHOD PERMITTED BY
      LAW.

     

    9.15 Waiver
      of Jury Trial.
      EACH OF
      THE BORROWER, THE AGENTS AND THE LENDERS HEREBY WAIVE THEIR RESPECTIVE RIGHTS
      TO
      A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
      AGREEMENT, ANY OF THE OTHER LOAN DOCUMENTS, OR ANY DEALINGS BETWEEN OR AMONG
      THEM RELATING TO THE SUBJECT MATTER OF THIS LOAN TRANSACTION AND ANY
      RELATIONSHIP THAT IS BEING ESTABLISHED AMONG ANY OF THEM. THE SCOPE OF THIS
      WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY
      BE
      FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION,
      INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY
      CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH OF THE BORROWER,
      THE
      AGENTS AND THE LENDERS ACKNOWLEDGE THAT THIS WAIVER IS A MATERIAL INDUCEMENT
      TO
      ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THE WAIVER
      IN ENTERING INTO THIS AGREEMENT AND THAT EACH WILL CONTINUE TO RELY ON THE
      WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH OF THE BORROWER, AGENTS AND THE
      LENDERS FURTHER WARRANT AND REPRESENT THAT EACH HAS REVIEWED THIS WAIVER WITH
      ITS LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY
      TRIAL
      RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE,
      MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THE WAIVER
      SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS
      TO THE LOAN DOCUMENTS, OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO
      THE
      LOANS. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN
      CONSENT TO A TRIAL BY THE COURT. EACH OF THE BORROWER, THE AGENTS AND THE
      LENDERS ALSO WAIVE ANY BOND OR SURETY OR SECURITY UPON SUCH BOND WHICH MIGHT,
      BUT FOR THIS WAIVER, BE REQUIRED OF EACH AGENT AND EACH LENDER.

     

     

    
      
        
        

      

      
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    9.16 Survival
      of Warranties and Certain
      Agreements.
      All
      agreements, representations and warranties made herein shall survive the
      execution and delivery of this Agreement, the making of the Loans, and the
      execution and delivery of the Notes. Notwithstanding anything in this Agreement
      or implied by law to the contrary, the agreements of the Borrower set forth
      in
Subsections
      1.4(D),
      1.11,
      1.14,
      9.1,
      9.9,
      9.14
      and
9.15
      and the
      agreements of the Lenders set forth in Subsection
      8.2(E)
      (together with any other Sections and Subsections stated herein to so survive)
      shall survive the payment of the Loans and the termination of this Agreement;
      provided,
      however,
      that
      the Borrower shall have no payment obligation under Subsections
      1.11
      or
1.14
      after
      termination of this Agreement unless notice of such obligation pursuant to
      Subsection
      1.11
      or
1.14
      was
      delivered to the Borrower prior to termination of this Agreement.

     

    9.17 Entire
      Agreement.
      This
      Agreement, the Notes and the other Loan Documents referred to herein embody
      the
      final, entire agreement among the parties hereto and supersede any and all
      prior
      commitments, agreements, representations, understandings, whether oral or
      written, relating to the subject matter hereof and may not be contradicted
      or
      varied by evidence of prior, contemporaneous or subsequent oral agreements
      or
      discussions of the parties hereto.

     

    9.18 Counterparts;
      Effectiveness.
      This
      Agreement and any amendments, waivers, consents or supplements may be executed
      in any number of counterparts and by different parties hereto in separate
      counterparts, each of which when so executed and delivered shall be deemed
      an
      original, but all of which counterparts together shall constitute but one and
      the same instrument. This Agreement shall become effective upon the execution
      of
      a counterpart hereof by each of the parties hereto.

     

    9.19 Patriot
      Act.
      The
      Lenders hereby notify Borrower and its Subsidiaries that pursuant to the
      requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into
      law October 26, 2001)) (the “Patriot
      Act”),
      they
      are required to obtain, verify and record information that identifies each
      of
      Borrower and its Subsidiaries, which information includes the name and address
      of such entity and other information that will allow the Lenders to identify
      such in accordance with the Patriot Act. Each of Borrower and its Subsidiaries
      shall provide to the extent commercially reasonable, such information and take
      such other actions as are reasonably requested by any Lender in order to assist
      such Lender in maintaining compliance with the Patriot Act.

     

     

    
      
        
        

      

      
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    SECTION
      10

     

    DEFINITIONS

     

    10.1 Certain
      Defined Terms.
      The
      terms defined below are used in this Agreement as so defined. Terms defined
      in
      the preamble and recitals to this Agreement are used in this Agreement as so
      defined.

     

    “Adjustment
      Date”
means
      each date which is the Business Day after the receipt by the Administrative
      Agent of each Compliance Certificate delivered by the Borrower pursuant to
      Subsection
      4.2(C)
      and
      related financial statements.

     

    “Administrative
      Agent”
means
      CoBank in its capacity as the Administrative Agent for the Lenders under this
      Agreement and each of the other Loan Documents and any successor in such
      capacity appointed pursuant to Subsection 8.2.

     

              
       “Administrative
      Questionnaire”
means
      an Administrative Questionnaire in a form supplied by the Administrative
      Agent.

     

    “Affiliate”
means,
      when used with respect to a specified Person, another Person that directly,
      or
      indirectly through one or more intermediaries, Controls or is Controlled by
      or
      is under common Control with the Person specified.

     

    “Agent”
and
      “Agents”
mean,
      respectively, each of the Administrative Agent and the Lead Arranger and,
      collectively, the Administrative Agent and the Lead Arranger.

     

    “Agreement”
means
      this Credit Agreement (including all schedules and exhibits hereto), as amended,
      modified, supplemented, extended and restated from time to time as permitted
      herein.

     

    “Applicable
      Law”
means,
      in respect of any Person, all provisions of constitutions, statutes, rules,
      regulations and orders of governmental bodies or regulatory agencies applicable
      to such Person, including the Licenses, the Communications Act and all
      Environmental Laws, and all orders, decisions, judgments and decrees of all
      courts and arbitrators in proceedings or actions to which the Person in question
      is a party or by which it is bound.

     

               
      “Approved
      Fund”
means
      any Fund that is administered or managed by (a) a Lender, (b) an Affiliate
      of a Lender or (c) an entity or an Affiliate of an entity that administers
      or
      manages a Lender.

     

    “Asset Exchange” shall
      mean the exchange or other transfer of telecommunications assets between or
      among the Borrower and another Person or other Persons in connection with which
      the Borrower would transfer telecommunications assets and/or other property
      in
      consideration of the receipt of telecommunications assets and/or other property
      having a fair market value substantially equivalent to those transferred by
      the
      Borrower (as determined
      in good faith by the Borrower’s Board of Directors); provided
      that
      the
      principal value of the assets being transferred to the Borrower shall be
      represented by telecommunications assets.

     

     

     

    
      
        
        

      

      
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    “Assignment
      and Assumption”
means
      an assignment and assumption entered into by a Lender and an Eligible Assignee
      (with the consent of any party whose consent is required by Subsection
      8.1)
      and
      accepted by the Administrative Agent, in substantially the form of Exhibit
      10.1(A)
      or any
      other form approved by the Administrative Agent.

     

    “Availability
      Period”
the
      period commencing on the Closing Date and ending at 12:00 noon (Denver, Colorado
      time) on the earlier to occur of (a) the Funding Date and (b) January
      31, 2007.

     

    “Bankruptcy
      Code”
means
      Title 11 of the United States Code entitled “Bankruptcy,” as amended from time
      to time or any applicable bankruptcy, insolvency or other similar federal or
      state law now or hereafter in effect and all rules and regulations promulgated
      thereunder.

     

    “Base
      Rate”
means,
      a variable rate of interest per annum equal, on any day, to the rate of interest
      published on such day in the Eastern Edition of The
      Wall Street Journal
      as the
      average prime lending rate for 75% of the United States’ 30 largest commercial
      banks, or if the Eastern Edition of The
      Wall Street Journal
      or such
      rate is not published on such day, such rate as last published in the Eastern
      Edition of The
      Wall Street Journal.
      In the
      event the Eastern Edition of The
      Wall Street Journal ceases
      to
      publish such rate or an equivalent, the term “Base Rate” shall be determined by
      reference to such other regularly published prime rate based upon any averaging
      of such 30 banks, as the Administrative Agent shall determine, or if no such
      published average prime rate is available, then the term “Base Rate” shall mean
      a variable rate of interest per annum as determined by the Administrative Agent
      equal to the highest of the “prime rate,” “reference rate,” “base rate” or other
      similar rate announced from time to time by any money center bank as selected
      by
      the Administrative Agent (with the understanding that any such rate may merely
      be a reference rate and may not necessarily represent the lowest or best rate
      actually charged to any customer by such bank). Any change in Base Rate shall
      be
      automatic, without the necessity of notice being provided to the Borrower or
      any
      of its Subsidiaries.

     

    “Base
      Rate Loans”
means
      Loans accruing interest at the rate determined by reference to the Base
      Rate.

     

    “Board” means
      the
      Board of Governors of the Federal Reserve System of the United
      States.

     

    “Budget”
means,
      for the Borrower and its Subsidiaries on a consolidated basis, forecasted;
      (i)
      balance sheets; (ii) profit and loss statements; (iii) cash flow statements;
      (iv) operating budget; and (v) capital budget, all prepared on a consistent
      basis with the Borrower’s historical financial statements, together with
      appropriate supporting details and a statement of underlying assumptions. The
      Budget represents and will represent as of the date thereof the good faith
      estimate of the Borrower and its senior management concerning the most probable
      course of its business.

     

    “Business
      Day”
means
      (i) for all purposes other than as covered by clause (ii) below, any day
      excluding Saturday, Sunday and any day which is a legal holiday under the laws
      of the State of Colorado or New York, or is a day on which banking institutions
      located in such state are closed or which the Federal Reserve Banks are closed,
      and (ii) with respect to all notices, determinations, fundings and payments
      in
      connection with LIBOR Loans, any day that is a Business Day described in clause
      (a) above and that is also a day for trading by and between banks in U.S. dollar
      deposits in the applicable interbank LIBOR market.

     

     

    
      
        
        

      

      
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    “Calculation
      Period”
means
      each period commencing on each Adjustment Date and ending on the day preceding
      each subsequent Adjustment Date.

     

    “Capital
      Lease Obligations” of
      any
      Person means the obligations of such Person to pay rent or other amounts under
      any lease of (or other arrangement conveying the right to use) real
      or
      personal property, or a
      combination thereof, which obligations are required to be classified and
      accounted for as
      capital leases on a balance sheet of such Person under GAAP and, for the
      purposes of this Agreement, the amount of such obligations at any time shall
      be
      the capitalized amount thereof at such time determined in accordance with
      GAAP.

     

    “Change
      in Control” means
      the
      occurrence of any of the following: (a) any Person or group (within the meaning
      of Rule 13d-5 of the Securities and Exchange Commission as in effect on the
      date
      hereof) shall own directly or indirectly, beneficially or of record, shares
      representing 50% or more of the aggregate ordinary voting power represented
      by
      the issued and outstanding capital stock of the Borrower; or (b) a majority
      of
      the seats (other than vacant seats) on the board of directors of the Borrower
      shall at any time have been occupied by Persons who were neither (i) nominated
      by the board of directors (or any committee thereof) of the Borrower, nor (ii)
      appointed by directors so nominated; or (c) any Person or group shall otherwise
      directly or indirectly Control the Borrower.

     

    “Closing
      Date”
means
      the date of this Agreement.

     

    “Communications
      Act”
means
      the Communications Act of 1934, as amended and any similar or successor federal
      statute, and the rules and regulations of the FCC thereunder, all as the same
      may be in effect from time to time.

     

    “Communications
      System”
means
      a
      land-line telephone system, a cable television system, a cellular mobile radio
      telephone system, a long distance telecommunications system or a PCS System,
      and
      shall include a microwave system or a paging system operated in connection
      with
      (and in the same general service area as) any of the foregoing
      systems.

     

    “Consolidated
      Net Worth” shall
      mean, as at any date of determination, the consolidated stockholders’
      equity of the Borrower and its consolidated Subsidiaries, including redeemable
      preferred securities where the redemption date occurs after the Term Loan
      Maturity Date, mandatorily redeemable convertible preferred securities,
      mandatorily convertible Indebtedness (or Indebtedness subject to mandatory
      forward purchase contracts for equity or similar securities) and minority equity
      interests in other persons, as determined on a consolidated basis in conformity
      with GAAP consistently applied.

     

    “Consolidated
      Tangible Assets” of
      any
      Person shall mean total assets of such Person and its consolidated Subsidiaries,
      determined on a consolidated basis, less goodwill, patents, trademarks and
      other
      assets classified as intangible assets in accordance with GAAP.

     

    “Control” shall
      mean the possession, directly or indirectly, of the power to direct or cause
      the
      direction of the management or policies of a Person, whether through the
      ownership of voting securities, by contract or otherwise, and “Controlling” and
“Controlled” shall have meanings correlative thereto.

     

     

    
      
        
        

      

      
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    “Default”
means
      a
      condition or event that, after notice or lapse of time or both, would constitute
      an Event of Default if that condition or event were not cured or removed within
      any applicable grace or cure period.

     

    “EBITDA”
means,
      for the period of calculation, the sum of (a) (i) net income or deficit, as
      the
      case may be (excluding extraordinary gains, extraordinary non-cash losses,
      the
      write up of any assets, any gain or loss on the sale of assets), (ii) total
      interest expense, (iii) depreciation and amortization expense, (iv) dividends
      on
      preferred stock, (v) accrued income or franchise taxes, federal state or local
      (whether paid or accrued as a liability), and (vi) losses attributable to
      minority interests, investment losses and non-recurring charges for severance,
      restructuring and acquisition costs, minus
      (b) the
      sum of (I) investment income, (II) interest income, (III) dividend and patronage
      income, (IV) income from unconsolidated subsidiaries, partnerships and joint
      ventures, and (V) other income (not otherwise included in clauses (I), (II),
      (III) and (IV)); in all cases in clauses (a) and (b) only to the extent
      otherwise included in calculating net income or deficit. For any period of
      calculation, EBITDA shall be adjusted to give effect to any Material Transaction
      during the period of calculation as if such Material Transaction occurred on
      the
      first day of such period of calculation.

     

               “Eligible
      Assignee”
means
      (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund, and (d) any
      other Person (other than a natural person) approved by (i) the Administrative
      Agent, and (ii) unless a Default or an Event of Default has occurred and is
      continuing, the Borrower (each such approval not to be unreasonably withheld
      or
      delayed); provided
      that
      notwithstanding the foregoing, “Eligible
      Assignee”
shall
      not include the Borrower or any of the Borrower’s Affiliates or
      Subsidiaries.

     

    “Environmental
      Laws”
means
      all national, federal, state, provincial, municipal or local laws, statutes,
      ordinances, orders, judgments, decrees, injunctions, writs, policies and
      guidelines (having the force of law), directives, approvals, notices, rules
      and
      regulations and other applicable laws relating to environmental or occupational
      health and safety matters, including those relating to the Release or threatened
      Release of Specified Substances and to the generation, use, storage or
      transportation of Specified Substances, each as in effect as of the date of
      determination.

     

    “ERISA”
means
      the Employee Retirement Income Security Act of 1974, as the same may be
      amended from time to time, and the regulations promulgated and the rulings
      issued thereunder.

     

    “ERISA
      Affiliate”
shall
      mean each trade or business (whether or not incorporated) which
      together with the Borrower or a Subsidiary of the Borrower would be deemed
      to
      be a
“single
      employer” within the meaning of Section 4001(b)(l) of ERISA.

     

    “ERISA
      Event”
means,
      with respect to the Borrower, any ERISA Affiliate or any Pension Plan, the
      occurrence of any of the following: (a) a Reportable Event; (b) a withdrawal
      by
      a substantial employer (as defined in Section 4001(a)(12) of ERISA) subject
      to
      Section 4063 of ERISA; (c) the filing of a notice of intent to terminate a
      Pension Plan under 4041 of ERISA; (d) the treatment of an amendment of a Pension
      Plan as a termination under 4041 of ERISA; (e) the termination of a
      Multi-employer Plan under Section 4041A of ERISA; (f) the commencement of
      proceedings by the PBGC to terminate a Pension Plan under 4042 of ERISA; or
      (g)
      an event or condition which could reasonably be expected to constitute grounds
      under Section 4042 of ERISA for the termination of, or the appointment of a
      trustee to administer, a Pension Plan.

     

     

    
      
        
        

      

      
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    “FCC”
means
      the Federal Communications Commission, or any other similar or successor agency
      of the federal government administering the Communications Act.

     

    “Fund”
means
      any Person (other than a natural person) that is (or will be) engaged in making,
      purchasing, holding or otherwise investing in commercial loans and similar
      extensions of credit in the ordinary course of its business.

     

    “GAAP”
means
      United States generally accepted accounting principles, applied on a consistent
      basis.

     

    “Governmental
      Approvals”
means
      all authorizations, consents, approvals, licenses and exemptions of,
      registrations and filings with, and reports to, all Governmental
      Authorities.

     

    “Governmental
      Authority”
means
      any nation, province, or state or any political subdivision of any of the
      foregoing, and any government or any Person exercising executive, legislative,
      regulatory or administrative functions of or pertaining to government, and
      any
      corporation or other entity exercising such functions owned or controlled,
      through stock or capital ownership or otherwise, by any of the foregoing,
      including the FCC and any PUC.

     

    “Guarantee” means,
      as
      to any Person, any obligation, contingent or otherwise, of such Person
      guaranteeing or having the economic effect of guaranteeing any Indebtedness
      or
      other obligation payable or performable by another Person (the “primary
      obligor”) in any manner, whether directly or indirectly, and including any
      obligation of such Person, direct or indirect, (i) to purchase or pay (or
      advance or supply funds for the purchase or payment of) such Indebtedness or
      other obligation, (ii) to purchase or lease property, securities or services
      for
      the purpose of assuring the obligee in respect of such Indebtedness or other
      obligation of the payment or performance of such Indebtedness or other
      obligation, (iii) to maintain working capital, equity capital or any other
      financial statement condition or liquidity or level of income or cash flow
      of
      the primary obligor so as to enable the primary obligor to pay such Indebtedness
      or other obligation, or (iv) entered into for the purpose of assuring in any
      other manner the obligee in respect of such Indebtedness or other obligation
      of
      the payment or performance thereof or
      to
      protect such obligee against loss in respect thereof (in whole or in part).
      The
      amount of
      any
      Guarantee shall be deemed to be an amount equal to the stated or determinable
      amount of
      the
      related primary obligation, or portion thereof, in respect of which such
      Guarantee is made or, if not stated or determinable, the maximum reasonably
      anticipated liability in respect
      thereof as determined by the guaranteeing Person in good faith. The term
“Guarantee” as a
      verb
      has a
      corresponding meaning.

     

    “Guaranty
      Agreement” means,
      collectively, each Guarantee executed and
      delivered pursuant
      to Subsection
      3.7.

     

     

    
      
        
        

      

      
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    “Indebtedness,”
of
      any
      Person shall mean, without duplication, (a) all obligations of such Person
      for borrowed money or with respect to deposits or advances of any kind (other
      than customer deposits made in the ordinary course of business), (b) all
      obligations of such Person evidenced by bonds, debentures, notes or similar
      instruments, (c) all obligations of such Person upon which interest charges
      are
      customarily paid, (d) all obligations of such Person under conditional sale
      or
      other title retention agreements relating to property or assets
      purchased by
      such
      Person, (e) all obligations of such Person issued or assumed as the deferred
      purchase price
      of
      property or services, (f) all Indebtedness of others secured by (or for which
      the holder of
      such
      Indebtedness has an existing right, contingent or otherwise, to be secured
      by)
      any Lien on property owned or acquired by such Person, whether or not the
      obligations secured thereby have been assumed, (g) all Capital Lease Obligations
      of such Person, (h) all obligations of
      such
      Person in respect of Swap Contracts (except to the extent such obligations
      are
      used as a bona fide
      hedge of other Indebtedness of such Person), (i) all obligations of such Person
      as an account party in respect of letters of credit and bankers’ acceptances
      (except to the extent any such obligations
      are incurred in support of other obligations constituting Indebtedness of
      such Person
      and other than, to the extent reimbursed if drawn, letters of credit in support
      of ordinary course performance obligations), (j) obligations under partnership,
      organizational or other agreements to fund capital contributions or other equity
      calls with respect to any Person or investment, or to redeem, repurchase or
      otherwise make payments in respect to capital stock or other securities of
      such
      Person, and (k) all Guarantees of such Person in respect of any of the
      foregoing; provided,
      however, that
      the
      term Indebtedness shall not include endorsements for collection or deposit,
      in
      either case in the ordinary course of business.

     

    “IRC”
means
      the Internal Revenue Code of 1986, as amended from time to time, and all rules
      and regulations promulgated thereunder.

     

    “Lead
      Arranger”
means
      CoBank in its capacity as Lead Arranger.

     

    “LIBOR”
means
      for each applicable Interest Period, a fixed annual rate equal to: (a) the
      rate
      of interest determined by the Administrative Agent at which deposits in U.S.
      dollars for the relevant Interest Period are offered based on information
      presented by the Telerate Service as quoted by the British Bankers Association
      as of 11:00 a.m. (London time) on the day which is two (2) Business Days prior
      to the first day of such Interest Period, provided,
      that in
      the event British Bankers Association ceases to provide such quotations (as
      determined by the Administrative Agent), then the Administrative Agent will
      notify the Borrower and the Administrative Agent and the Borrower will agree
      upon a substitute basis for obtaining such quotations, divided
      by (b) a
      number equal to 1.0 minus
      the
      aggregate (but without duplication) of the rates (expressed as a decimal
      fraction) of reserve requirements in effect on the day which is two Business
      Days prior to the beginning of such Interest Period for Eurocurrency funding
      (currently referred to as “Eurocurrency Liabilities” in Regulation D of such
      Board) which are required to be maintained by a member bank of the Federal
      Reserve System (including, without limitation, basic, supplemental, marginal
      and
      emergency reserves under any regulations of the Board of Governors of the
      Federal Reserve System or other Governmental Authority having jurisdiction
      with
      respect thereto, as now and from time to time in effect); such rate to be
      rounded upward to the next whole multiple of one-sixteenth of one percent
      (0.0625%).

     

     

    
      
        
        

      

      
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    “LIBOR
      Loans”
means
      Loans accruing interest at rates determined by reference to the
      LIBOR.

     

    “LIBOR
      Margin”
means
      the applicable percent per annum determined in accordance with Subsection
      1.2(B).

     

    “Licenses”
shall
      mean any landline telephone, cellular telephone, microwave, personal
      communications or other telecommunications or similar license, authorization,
      waiver, certificate of compliance, franchise, approval or permit, whether for
      the acquisition, construction or operation of any Communications System, granted
      or issued by the FCC, any applicable PUC or other Governmental authority and
      held by the Borrower or any of its Subsidiaries.

     

    “Lien”
means,
      with respect to any asset, (a) any mortgage, deed of trust, lien, pledge,
      encumbrance, charge, or security interest in or on such asset, (b) the interest
      of a vendor or a lessor under any conditional sale agreement, capital lease,
      or
      title retention agreement relating to such asset and (c) in the case of
      securities, any purchase option, call, or similar right of a third party with
      respect to such securities.

     

    “Loan”
or
      “Loans”
means
      an advance or advances under the Term Loan Commitment.

     

    “Loan
      Documents”
means
      this Agreement, the Notes, any Security Documents, and Guaranty Agreement,
      and
      all other instruments, documents and agreements executed and delivered
      concurrently herewith or at any time hereafter to or for the benefit of the
      Agents or the Lenders in connection with the Loans and other transactions
      contemplated by this Agreement, all as amended, modified, supplemented, extended
      or restated from time to time.

     

    “Margin
      Regulations” shall
      mean Regulations T, U and X of the Board.

     

    “Material
      Adverse Effect”
means
      a
      material adverse effect on the business, assets, operations, financial condition
      or results of operations of the Borrower and its Subsidiaries taken as a
      whole.

     

    “Material
      Transaction” means any
      acquisition or disposition outside the ordinary course of business of any
      property or assets that (x) constitute assets comprising all or substantially
      all of an operating unit of a business or equity interests of a Person
      representing a majority of the ordinary voting power or economic interests
      in
      such Person that are represented by all its outstanding capital stock and (y)
      involves aggregate consideration in excess of $50,000,000.

     

    “Multi-employer
      Plan”
means
      a
      Multi-employer plan as defined in Section 4001(a)(3) of ERISA to which the
      Borrower or any ERISA Affiliate makes, is making, made, or was at any time
      during the current year or the immediately preceding 6 years obligated to make
      contributions.

     

    “Note”
or
      “Notes”
means
      one or more of the Term Loan Notes.

     

     

    
      
        
        

      

      
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    “Obligations”
means
      all obligations, liabilities and indebtedness of every nature of the Borrower
      under the Loan Documents from time to time owed to the Administrative Agent
      and
      any Lender, including the principal amount of all debts, claims and
      indebtedness, accrued and unpaid interest, and all fees, costs and expenses
      hereunder, whether primary, secondary, direct, contingent, fixed or otherwise,
      heretofore, now or from time to time hereafter owing, due or payable or any
      combination thereof whether before or after the filing of a proceeding under
      the
      Bankruptcy Code by or against the Borrower or any of its
      Subsidiaries.

     

    “PBGC”
means
      the Pension Benefit Guaranty Corporation referred to and defined in
      ERISA.

     

    “Pension
      Plan”
means
      a
      pension plan (as defined in Section 3(2) of ERISA) subject to Title IV of ERISA
      which the Borrower or an ERISA Affiliate sponsors, maintains, or to which it
      makes, is making, or is obligated to make contributions or, in the case of
      a
      Multi-employer Plan, has made contributions at any time during the current
      year
      or the immediately preceding six plan years.

     

    “Person”
means
      and includes natural persons, corporations, limited liability companies, limited
      partnerships, limited liability partnerships, general partnerships, joint stock
      com-panies, joint ventures, associations, companies, trusts, banks, trust
      companies, land trusts, business trusts or other organizations, whether or
      not
      legal entities, and governments and agencies and political subdivisions thereof
      and their respective permitted successors and assigns (or in the case of a
      governmental person, the successor functional equivalent of such
      Person).

     

    “Plan” means
      an
      employee benefit plan (as defined in Section 3(3) of ERISA) which the Borrower
      or an ERISA Affiliate sponsors or maintains or to which the Borrower or an
      ERISA
      Affiliate makes, is making, or is obligated to make contributions and includes
      any Pension Plan.

     

    “Principal
      Subsidiaries” shall
      mean any Subsidiary of the Borrower, whose Consolidated Tangible Assets comprise
      in excess of 25% of the Consolidated Tangible Assets of the Borrower and its
      consolidated Subsidiaries as of the date hereof or at any time
      hereafter.

     

    “Pro
      Rata Share”
means
      (i) prior to the advance of the Term Loan, the percentage obtained by dividing
      (a) the commitment of a Lender under the Term Loan Commitment by (b) 
the Term Loan Commitment and (ii) after the advance of the Term Loan, the
      percentage obtained by dividing (a) the amount of a Lender’s outstanding
      advances related to the Term Loan by (b) the aggregate amount of all outstanding
      advances related to the Term Loan.

     

    “PUC”
means
      any state, provincial or other local regulatory agency or body that exercises
      jurisdiction over the rates or services or the ownership, construction or
      operation of any Communications System or over Persons who own, construct or
      operate a Communications System, in each case by reason of the nature or type
      of
      the business subject to regulation and not pursuant to laws and regulations
      of
      general applicability to Persons conducting business in any such
      jurisdiction.

     

    “Regulation
      D” means
      Regulation D of the Board as from time to time in effect and all official
      rulings and interpretations thereunder or thereof.

     

    “Regulation
      T” means
      Regulation T of the Board as from time to time in effect and all official
      rulings and interpretations thereunder or thereof

    

    “Regulation
      U”
means
      Regulation U of the Board as from time to time in effect and all
      official rulings and interpretations thereunder or thereof.

     

     

    
      
        
        

      

      
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    “Regulation
      X” means
      Regulation X of the Board as from time to time in effect and all official
      rulings and interpretations thereunder or thereof.

     

    “Related
      Parties”
means,
      with respect to any Person, such Person’s Affiliates and the partners,
      directors, officers, employees, agents and advisors of such Person and of such
      Person’s Affiliates.

     

    “Release” means
      any
      spilling, emitting, discharging, depositing, escaping, leaching, dumping or
      other releasing, including the movement of any Specified Substance through
      the
      air, soil, surface water, groundwater or property, and when used as a verb
      has a
      like meaning.

     

    “Reportable
      Event” means
      any
      of the events set forth in Section 4043(b) of ERISA, other than any such
      Reportable Event for which the 30 day notice requirement under ERISA has been
      waived.

     

    “Requisite
      Lenders”
means
      at least two Lenders (to the extent more than one Lender holds any of the Term
      Loan Commitment or the outstanding principal amount of the Term Loan) who have
      in the aggregate Pro Rata Shares greater than 50.00%.

     

    “Restricted
      Payment”
means
      any dividend or other distribution (whether in cash, securities or other
      property) with respect to any capital stock or other equity interest of the
      Borrower or any Subsidiary, or any payment (whether in cash, securities or
      other
      property), including any sinking fund or similar deposit, on account of the
      purchase, redemption, retirement, acquisition, cancellation or termination
      of
      any such capital stock or other equity interest, or on account of any return
      of
      capital to the Borrower’s stockholders.

     

    “Securitization
      Transaction”
means
      (a) any transfer of accounts receivable or interests therein (i) to a trust,
      partnership, corporation or other entity (other than a Subsidiary), which
      transfer or pledge is funded by such entity in whole or in part by the issuance
      to one or more lenders or investors of indebtedness or other securities that
      are
      to receive payments principally from the cash flow derived from such accounts
      receivable or interests in accounts receivable, or (ii) directly to one or
      more
      investors or other purchasers (other than any Subsidiary), or (b) any
      transaction in which the Borrower or a Subsidiary incurs Indebtedness secured
      principally by Liens on accounts receivable. The “amount” of any Securitization
      Transaction shall be deemed at any time to be (A) in the case of a transaction
      described in clause (a) of the preceding sentence, the aggregate uncollected
      amount of the accounts receivable transferred pursuant to such Securitization
      Transaction, net of any such accounts receivable that have been written off
      as
      uncollectible, and (B) in the case of a transaction described in clause (b)
      of
      the preceding sentence, the aggregate outstanding principal amount of the
      Indebtedness secured by Liens on accounts receivable Incurred pursuant to such
      Securitization Transaction.

     

    “Security
      Documents” means,
      collectively, each security agreement or other instrument or document executed
      and delivered pursuant to the proviso to Subsection
      3.1
      or the
      proviso to Subsection
      3.2
      to
      secure any of the Obligations.

     

     

     

    
      
        
        

      

      
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    “Specified
      Substance” means
      (i)
      any chemical, material or substance defined as or included
      in the definition of “hazardous substances”, “hazardous wastes”, “hazardous
      materials”, “extremely hazardous waste”, “restricted hazardous waste” or “toxic
      substances” or words
      of
      similar import under any applicable Environmental Laws; (ii) any (A) oil,
      natural gas, petroleum or petroleum derived substance, any drilling fluids,
      produced waters and other wastes associated with the exploration, development
      or
      production of crude oil, natural gas or geothermal fluid, any flammable
      substances or explosives, any radioactive materials, any hazardous wastes or
      substances, any toxic wastes or substances or (B) other materials or pollutants
      that, in the case of both (A) and (B), (1) pose a hazard to the property of
      the
      Borrower or any of its Subsidiaries or any part thereof or to persons on or
      about such property or to any other property that may be affected by the Release
      of such materials or pollutants from such property or any part thereof or to
      persons on or about such other property or (2) cause such property or such
      other
      property to be in violation of any Environmental Law; (iii) asbestos, urea
      formaldehyde foam insulation, toluene, polychlorinated biphenyls and any
      electrical equipment which contains any oil or dielectric fluid containing
      levels of polychlorinated biphenyls in excess of fifty parts per million, and
      (iv) any sound, vibration, heat, radiation or other form of energy and any
      other
      chemical, material or substance, exposure to which is prohibited, limited or
      regulated by any Governmental Authority.

     

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

     

    “Swap
      Contract” means
      (a)
      any and all rate swap transactions, basis swaps, credit derivative transactions,
      forward rate transactions, commodity swaps, commodity options, forward commodity
      contracts, equity or equity index swaps or options, bond or bond price or bond
      index swaps or options or forward bond or forward bond price or forward bond
      index transactions, interest rate options, forward foreign exchange
      transactions, cap transactions, floor transactions, collar transactions,
      currency swap transactions, cross-currency rate swap transactions, currency
      options, spot contracts, or any other similar transactions or any combination
      of
      any of the foregoing (including any options to enter into any of the foregoing),
      whether or not any such transaction is governed by or subject to any master
      agreement, and (b) any and all transactions of any kind, and the related
      confirmations, which are subject to the terms and conditions of, or governed
      by,
      any form of master agreement published by the International Swaps and
      Derivatives Association, Inc., any International Foreign Exchange Master
      Agreement, or any other master agreement (any such master agreement, together
      with any related schedules, a “Master Agreement”), including any such
      obligations or liabilities under any Master Agreement.

     

     

    
      
        
        

      

      
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    “Swap
      Termination Value” means,
      in
      respect of any one or more Swap Contracts, after taking into account the effect
      of any legally enforceable netting agreement relating to such Swap Contracts,
      (a) for any date on or after the date such Swap Contracts have been closed
      out
      and termination value(s) determined in accordance therewith, such termination
      value(s), and (b) for any date prior to the date referenced in clause (a),
      the
      amount(s) determined as the mark-to-market value(s) for such Swap Contracts,
      as
      determined based upon one or more mid-market or other readily available
      quotations provided by any recognized dealer in such Swap Contracts (which
      may
      include a Lender or any Affiliate of a Lender).

     

               
      “Term
      Loan”
means
      any Loan under the Term Loan Commitment.

     

    “Term
      Loan Commitment”
means
      $150,000,000.

     

    “Term
      Loan Facility”
means
      the term loan credit facility extended to the Borrower pursuant to Subsection
      1.1(A).

     

    “Term
      Loan Maturity Date”
means
      the earlier of (i) the acceleration of the Obligations pursuant to Subsection
      6.3
      or (ii)
      December 31, 2012.

     

    “Term
      Loan Note”
or
      “Term
      Loan Notes”
means
      one or more of the notes of the Borrower substantially in the form of
Exhibit
      10.1(B),
      or any
      combination thereof, and any replacements, restatements, renewals or extensions
      of any such notes, in whole or in part.

     

    “Total
      Indebtedness”
means,
      as of any date, the aggregate principal amount of Indebtedness of the Borrower
      and its consolidated Subsidiaries outstanding as of such date, in the amount
      and
      only to the extent that such Indebtedness would be reflected on a balance sheet
      prepared as of such date on a consolidated basis in accordance with GAAP,
minus
      the
      amount of the cash and cash equivalents of the Borrower and its consolidated
      Subsidiaries in excess of $50,000,000 that would be reflected on such balance
      sheet.

     

    “Total
      Leverage Ratio”
means,
      with respect to any fiscal quarter, as of the date ending such fiscal quarter,
      the ratio of (a) Total Indebtedness as of such fiscal quarter end to
      (b) EBITDA, for the four consecutive fiscal quarters immediately prior to
      such fiscal quarter end (including such fiscal quarter).

     

    10.2 Other
      Definitional Provisions.
      References to “Sections,” “Subsections,” “Exhibits” and “Schedules” shall be to
      Sections, Subsections, Exhibits and Schedules, respectively, of this Agreement
      unless otherwise specifically provided. Any of the terms defined in Subsection
      10.1
      may,
      unless the context otherwise requires, be used in the singular or the plural
      depending on the reference. In this Agreement, “hereof,” “herein,” “hereto,”
“hereunder” and the like mean and refer to this Agreement as a whole and not
      merely to the specific section, paragraph or clause in which the respective
      word
      appears; words importing any gender include the other gender; references to
      “writing” include printing, typing, lithography and other means of reproducing
      words in a tangible visible form; the words “including,” “includes” and
“include” shall be deemed to be followed by the words “without limitation”;
      references to agreements and other contractual instruments shall be deemed
      to
      include subsequent amendments, assignments, and other modifications thereto,
      but
      only to the extent such amendments, assignments and other modifications are
      not
      prohibited by the terms of this Agreement or any other Loan Document; references
      to Persons include their respective permitted successors and assigns or, in
      the
      case of governmental Persons, Persons succeeding to the relevant functions
      of
      such Persons; and all references to statutes and related regulations shall
      include any amendments of same and any successor statutes and
      regulations.

     

     

    
      
        
        

      

      
        56

        
          

        

      

      
        
        

        Credit
          Agreement/Citizens Communications Company

      

    

     

    
 

     

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      begin on following page]

    

    

    
      
        
          
          

        

        
          57

          
            

          

        

        
          
          

          Credit
            Agreement/Citizens Communications Company

        

      

    

    
 

    Witness
      the due execution hereof by the respective duly authorized officers of the
      undersigned as of the date first written above.

    

    
      	
              CITIZENS
                COMMUNICATIONS COMPANY,

              as
                the Borrower,

               

            
	 
	
              By:

            	/s/
              Donald R. Shassian
	 	
              Donald
                R. Shassian

            
	 	
              Chief
                Financial Officer

            

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    [Signatures
      Continued on Following Page]

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        Credit
          Agreement/Citizens Communications Company

      

    

    
 

    

    [Signatures
      Continued from Previous Page]

    

    

    

    

    

    
      	
              Commitments
                and Commitment Percentages as set forth on Schedule 10.1(A)
                attached hereto.

               

            	 	
              COBANK,
                ACB,
                as the Administrative Agent, the Lead Arranger and a Lender

               

               

              By:_/s/
                Gary Franke_______________

                  
                Gary Franke

                  
                Vice President

            
	 	 	 
	 	 	
              Address:
                CoBank, ACB

              5500
                South Quebec Street

              Greenwood
                Village, Colorado 80111

              Attn: 
                Gary Franke

              Fax:  
                770-618-3202

              Email: 
                gfranke@cobank.com

            
	 	 	 
	 	 	
              With
                a copy to:

            
	 	 	 
	 	 	
              Address:
                CoBank, ACB

              5500
                South Quebec Street

              Greenwood
                Village, Colorado 80111

              Attn: Communications
                and Energy

                  
                Banking Group

              Fax:
                (303) 694-5967

              Email:
                syndications@cobank.comUnassociated Document

    Exhibit
      10.1

    

    

    CHESAPEAKE
      FUNDING LLC,

     

    as
      Issuer

     

    PHH
      VEHICLE MANAGEMENT SERVICES, LLC,

     

    as
      Administrator

     

    JPMORGAN
      CHASE BANK, NATIONAL ASSOCIATION,

     

    as
      Administrative Agent,

     

    CERTAIN
      CP CONDUIT PURCHASERS,

     

    CERTAIN
      APA BANKS,

     

    CERTAIN
      FUNDING AGENTS

     

    and

     

    THE
      BANK
      OF NEW YORK,

    as
      successor to JPMorgan Chase, as Indenture Trustee

     

     

    AMENDED
      AND RESTATED SERIES 2006-2 INDENTURE SUPPLEMENT

     

    dated
      as
      of December 1, 2006

     

    to

     

    BASE
      INDENTURE

     

    dated
      as
      of March 7, 2006

     

    

     

    
      
        
        

         

      

      
         

        
          

        

      

      
         

        
        

      

    

    TABLE
      OF CONTENTS

    
 

    
      
                

          	 	Page
	
                  ARTICLE
                    1 DEFINITIONS

                   

                	
                   

                  2

                
	
                   

                  ARTICLE
                    2 PURCHASE AND SALE OF SERIES 2006-2 INVESTOR NOTES; INCREASES
                    AND
                    DECREASES OF SERIES 2006-2 INVESTED AMOUNT

                	
                   

                  27

                
	
                   

                      SECTION
                    2.1. Purchases of the Series 2006-2 Investor Notes

                	
                   

                  27

                
	
                   

                      SECTION
                    2.2. Delivery.

                	
                   

                  27

                
	
                   

                      SECTION
                    2.3. Procedure for Initial Issuance and for Increasing the Series
                    2006-2
                    Invested Amount.

                	
                   

                  28

                
	
                   

                      SECTION
                    2.4. Sales by CP Conduit Purchasers of Series 2006-2 Investor
                    Notes to APA
                    Banks

                	
                   

                  30

                
	
                   

                      SECTION
                    2.5. Procedure for Decreasing the Series 2006-2 Invested Amount;
                    Optional
                    Termination.

                	
                   

                  30

                
	
                   

                      SECTION
                    2.6. Increases and Reductions of the Commitments; Extensions
                    of the
                    Commitments

                	
                   

                  31

                
	
                   

                      SECTION
                    2.7. Interest; Fees.

                	
                   

                  32

                
	
                   

                      SECTION
                    2.8. Indemnification by the Issuer and the Administrator

                	
                   

                  34

                
	
                   

                      SECTION
                    2.9. Funding Agents

                	
                   

                  35

                
	
                   

                  ARTICLE
                    3 ARTICLE 5 OF THE BASE INDENTURE

                	
                   

                  35

                
	
                   

                      Section
                    5A.1 Establishment of Series 2006-2 Subaccounts

                   

                	
                   

                  35

                
	
                      Section
                    5A.2 Allocations with Respect to the Series 2006-2 Investor
                    Notes

                   

                	
                   

                  37

                
	
                      Section
                    5A.3. Determination of Interest

                	
                   

                  39

                
	
                   

                      Section
                    5A.4. Monthly Application of Collections

                	
                   

                  40

                
	
                   

                      Section
                    5A.5 Payment of Monthly Interest Payment, Fees and
                    Expenses

                	
                   

                  42

                
	
                   

                      Section
                    5A.6. Determination of Monthly Principal Payment

                	
                   

                  44

                
	
                   

                      Section
                    5A.7 Payment of Principal

                	
                   

                  44

                

        

         

         

        
          
            i

          

          
             

            
              

            

          

          
             

          

        

         

        
          	
                   

                      Section
                    5A.8 The Administrator’s Failure to Instruct the Indenture Trustee to Make
                    a Deposit or Payment

                	
                   

                  45

                
	
                   

                      Section
                    5A.9 Series 2006-2 Reserve Account

                	
                   

                  46

                
	
                   

                      Section
                    5A.10 Series 2006-2 Yield Supplement Account

                	
                   

                  47

                
	
                   

                      Section
                    5A.11 Series 2006-2 Distribution Account

                	
                   

                  49

                
	
                   

                      Section
                    5A.12 Lease Rate Caps

                	
                   

                  49

                
	
                   

                      Section
                    5A.13 Indenture Trustee As Securities Intermediary

                	
                   

                  51

                
	
                   

                  ARTICLE
                    4 AMORTIZATION EVENTS

                	
                   

                  52

                
	
                   

                  ARTICLE
                    5 OPTIONAL PREPAYMENT

                	
                   

                  55

                
	
                   

                  ARTICLE
                    6 SERVICING AND ADMINISTRATOR FEES

                	
                   

                  55

                
	
                   

                      SECTION
                    6.1. Servicing Fee

                	
                   

                  55

                
	
                   

                      SECTION
                    6.2. Administrator Fee

                   

                	
                   

                  55

                
	
                  ARTICLE
                    7 CHANGE IN CIRCUMSTANCES

                   

                	
                   

                  56

                
	
                   

                      SECTION
                    7.1. Illegality

                	
                   

                  56

                
	
                   

                      SECTION
                    7.2. Increased Costs.

                	
                   

                  56

                
	
                   

                      SECTION
                    7.3. Taxes.

                	
                   

                  57

                
	
                   

                      SECTION
                    7.4. Break Funding Payments

                	
                   

                  59

                
	
                   

                      SECTION
                    7.5. Alternate Rate of Interest

                	
                   

                  60

                
	
                   

                      SECTION
                    7.6. Mitigation Obligations

                	
                   

                  60

                
	
                   

                  ARTICLE
                    8 REPRESENTATIONS AND WARRANTIES, COVENANTS

                	
                   

                  61

                
	
                   

                      SECTION
                    8.1. Representations and Warranties of the Issuer and VMS

                   

                	
                   

                  61

                
	
                      SECTION
                    8.2. Covenants of the Issuer and VMS

                	
                  61

                
	
                   

                      SECTION
                    8.3. Covenants of the Administrator

                	
                   

                  62

                
	
                   

                      SECTION
                    8.4. Obligations Unaffected

                	
                   

                  63

                
	
                   

                  ARTICLE
                    9 CONDITIONS PRECEDENT

                	
                   

                  64

                
	
                   

                      SECTION
                    9.1. Conditions Precedent to Effectiveness of Indenture
                    Supplement

                	
                   

                  64

                

        

         

         

        
          
            ii

          

          
             

            
              

            

          

          
             

          

        

         

         

        
          	
                   

                      SECTION
                    9.2. Conditions Precedent to Effectiveness of Amendment and Restatement
                    of
                    Original Series 2006-2 Indenture Supplement

                   

                	
                   

                  67

                
	
                  ARTICLE
                    10 THE ADMINISTRATIVE AGENT

                	
                   

                  69

                
	
                   

                      SECTION
                    10.1. Appointment

                	
                   

                  69

                
	
                   

                      SECTION
                    10.2. Delegation of Duties

                	
                   

                  69

                
	
                   

                      SECTION
                    10.3. Exculpatory Provisions

                	
                   

                  69

                
	
                   

                      SECTION
                    10.4. Reliance by Administrative Agent

                	
                   

                  70

                
	
                   

                      SECTION
                    10.5. Notice of Administrator Default or Amortization Event or
                    Potential
                    Amortization Event

                	
                   

                  70

                
	
                   

                      SECTION
                    10.6. Non Reliance on the Administrative Agent and Other
                    Purchasers

                	
                   

                  71

                
	
                   

                      SECTION
                    10.7. Indemnification

                	
                   

                  71

                
	
                   

                      SECTION
                    10.8. The Administrative Agent in Its Individual Capacity

                	
                   

                  72

                
	
                   

                      SECTION
                    10.9. Resignation of Administrative Agent; Successor Administrative
                    Agent

                	
                   

                  72

                
	
                   

                  ARTICLE
                    11 THE FUNDING AGENTS

                	
                   

                  73

                
	
                   

                      SECTION
                    11.1. Appointment

                	
                   

                  73

                
	
                   

                      SECTION
                    11.2. Delegation of Duties

                	
                   

                  73

                
	
                   

                      SECTION
                    11.3. Exculpatory Provisions

                   

                	
                   

                  73

                
	
                      SECTION
                    11.4. Reliance by Each Funding Agent

                	
                   

                  74

                
	
                   

                      SECTION
                    11.5. Notice of Administrator Default or Amortization Event or
                    Potential
                    Amortization Event

                	
                   

                  74

                
	
                   

                      SECTION
                    11.6. Non Reliance on Each Funding Agent and Other Purchaser
                    Groups

                	
                   

                  74

                
	
                   

                      SECTION
                    11.7. Indemnification

                	
                   

                  75

                
	
                   

                  ARTICLE
                    12 MISCELLANEOUS

                   

                	
                   

                  75

                
	
                      SECTION
                    12.1. Ratification of Indenture

                	
                   

                  75

                
	
                   

                      SECTION
                    12.2. Governing Law

                	
                   

                  75

                
	
                   

                      SECTION
                    12.3. Further Assurances

                	
                   

                  75

                

        

         

         

        
          
            iii

          

          
             

            
              

            

          

          
             

          

        

         

        
          	
                   

                      SECTION
                    12.4. Payments

                	
                   

                  76

                
	
                   

                      SECTION
                    12.5. Costs and Expenses

                	
                   

                  76

                
	
                   

                      SECTION
                    12.6. No Waiver; Cumulative Remedies

                	
                   

                  76

                
	
                   

                      SECTION
                    12.7. Amendments

                	
                   

                  76

                
	
                   

                      SECTION
                    12.8. Severability

                	
                   

                  77

                
	
                   

                      SECTION
                    12.9. Notices

                	
                   

                  77

                
	
                   

                      SECTION
                    12.10. Successors and Assigns

                	
                   

                  78

                
	
                   

                      SECTION
                    12.11. Securities Laws

                	
                   

                  80

                
	
                   

                      SECTION
                    12.12. Adjustments; Set-off

                	
                   

                  80

                
	
                   

                      SECTION
                    12.13. Counterparts

                	
                   

                  81

                
	
                   

                      SECTION
                    12.14. No Bankruptcy Petition

                	
                   

                  81

                
	
                   

                      SECTION
                    12.15. SUBIs

                	
                   

                  82

                
	
                   

                      SECTION
                    12.16. Discharge of Indenture

                	
                   

                  82

                
	
                   

                      SECTION
                    12.17. Limited Recourse

                	
                   

                  82

                
	
                   

                      SECTION
                    12.18. Waiver of Setoff

                	
                   

                  83

                
	
                   

                      SECTION
                    12.19. Conflict of Instructions

                	
                   

                  83

                
	
                   

                      SECTION
                    12.20. JPMorgan Chase Conflict Waiver

                	
                   

                  83

                
	
                   

                      SECTION
                    12.21. Confidential Information.

                	
                   

                  84

                

        

      

    

     

     

    EXHIBITS

     

    Exhibit
      A:  Form
      of
      Series 2006-2 Variable Funding Investor Note

    Exhibit
      B:  Increase
      Notice

    Exhibit
      C:  Monthly
      Settlement Statement

    Exhibit
      D:  Form
      of
      Agreed Upon Procedures - Lease Data File

    Exhibit
      E:  Form
      of
      Agreement Upon Procedures - Characteristics of Leases

     

     

     

    
      
        iv

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
      F:  UCC
      Certificate

    Exhibit
      G:  Form
      of
      Transfer Supplement

    Exhibit
      H:  Form
      of
      Purchaser Group Supplement

    

     

    

     

    
      
        
          

        

        v

      

      
         

        
          

        

      

      
         

        
           

        

      

    

    AMENDED
      AND RESTATED SERIES 2006-2 INDENTURE SUPPLEMENT, dated as of December 1, 2006
      (as amended, supplemented, restated or otherwise modified from time to time,
      this “Indenture
      Supplement”)
      among
      CHESAPEAKE FUNDING LLC, a special purpose limited liability company established
      under the laws of Delaware (the “Issuer”),
      PHH
      VEHICLE MANAGEMENT SERVICES, LLC (“VMS”),
      as
      administrator (in such capacity, the “Administrator”),
      the
      several commercial paper conduits listed on Schedule I and their respective
      permitted successors and assigns (the “CP
      Conduit Purchasers”;
      each,
      individually, a “CP
      Conduit Purchaser”),
      the
      several banks set forth opposite the name of each CP Conduit Purchaser on
      Schedule I and the other banks parties hereto pursuant to Section
      12.10(c)
      (each an
“APA
      Bank”
with
      respect to such CP Conduit Purchaser), the agent bank set forth opposite the
      name of each CP Conduit Purchaser on Schedule I and its permitted successor
      and
      assign (the “Funding
      Agent”
with
      respect to such CP Conduit Purchaser), JPMorgan Chase, in its capacity as
      administrative agent for the CP Conduit Purchasers, the APA Banks and the
      Funding Agents (the “Administrative
      Agent”),
      and
      THE BANK OF NEW YORK, as successor to JPMorgan Chase, in its capacity as
      Indenture Trustee (together with its successors in trust thereunder as provided
      in the Base Indenture referred to below, the “Indenture
      Trustee”),
      to
      the Base Indenture, dated as of March 7, 2006, between the Issuer and the
      Indenture Trustee (as amended, modified, restated or supplemented from time
      to
      time, exclusive of Indenture Supplements creating new Series of Investor Notes,
      the “Base
      Indenture”).

     

    

    PRELIMINARY
      STATEMENT

    

    WHEREAS,
      the Issuer, the Administrator, the CP Conduit Purchasers, the APA Banks, the
      Funding Agents, the Administrative Agent and the Indenture Trustee entered
      into
      the Series 2006-2 Supplement, dated as of March 7, 2006 (the “Original
      Series 2006-2 Indenture Supplement”),
      pursuant to which the Series 2006-2 Notes were issued;

     

    WHEREAS,
      pursuant to Section 12.2 of the Base Indenture and Section 12.7 of the Original
      Series 2006-2 Indenture Supplement, the Original Series 2006-2 Indenture
      Supplement may be amended with the consent of the Issuer, the Indenture Trustee,
      the Administrator and the Series 2006-2 Required Investor Noteholders;

     

    WHEREAS,
      the Issuer desires to amend and restate the Original Series 2006-2 Indenture
      Supplement and enter into a new fee letter in connection with such amendment
      and
      restatement;

     

    NOW,
      THEREFORE, the parties hereto agree as follows:

     

    DESIGNATION

    

     

    There
      was
      created a Series of Investor Notes issued pursuant to the Base Indenture and
      the
      Original Series 2006-2 Indenture Supplement and such Series of Investor Notes
      was designated generally as Floating Rate Asset Backed Variable Funding Investor
      Notes, Series 2006-2.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    The
      proceeds from the initial sale of the Series 2006-2 Investor Notes were and
      the
      proceeds from any Increase (as defined herein) made hereafter shall be deposited
      in the Series 2006-2 Collection Subaccount and shall be used by the Issuer
      to
      fund the Loans to Holdings under the Loan Agreement and the prepayment of the
      Invested Amounts of other Series of Investor Notes.

     

    ARTICLE
      1  

     

    DEFINITIONS

     

    (a)  All
      capitalized terms not otherwise defined herein are defined in the Definitions
      List attached to the Base Indenture as Schedule
      1
      thereto.
      All Article, Section or Subsection references herein shall refer to Articles,
      Sections or Subsections of this Indenture Supplement, except as otherwise
      provided herein. Unless otherwise stated herein, as the context otherwise
      requires or if such term is otherwise defined in the Base Indenture, each
      capitalized term used or defined herein shall relate only to the Series 2006-2
      Investor Notes and not to any other Series of Investor Notes issued by the
      Issuer. 

     

    (b)  The
      following words and phrases shall have the following meanings with respect
      to
      the Series 2006-2 Investor Notes and the definitions of such terms are
      applicable to the singular as well as the plural form of such terms and to
      the
      masculine as well as the feminine and neuter genders of such terms:

     

    “Acquiring
      APA Bank”
is
      defined in Section
      12.10(c). 

     

    “Acquiring
      Purchaser Group”
is
      defined in Section
      12.10(e).

     

    “Additional
      Costs Cap”
means,
      for any Payment Date, an amount equal to the quotient of the product of (a)
      0.25% per annum, (b) the weighted average Series 2006-2 Invested Amount during
      the immediately preceding Series 2006-2 Interest Period and (c) the number
      of
      days in such Series 2006-2 Interest Period divided by 360.

     

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

     

    “Adjusted
      LIBO Rate”
means,
      with respect to each day during each Eurodollar Period pertaining to a portion
      of the Purchaser Group Invested Amount with respect to any Purchaser Group
      allocated to a Eurodollar Tranche, an interest rate per annum (rounded upwards,
      if necessary, to the nearest 1/16th of 1%) equal to the LIBO Rate for such
      Eurodollar Period multiplied by the Statutory Reserve Rate.

     

    “Administrative
      Agent”
is
      defined in the recitals hereto.

     

    “Affected
      Party”
means
      any CP Conduit Purchaser and any Program Support Provider with respect to such
      CP Conduit Purchaser.

     

    “Alternate
      Base Rate”
means,
      for any day, a rate per annum equal to the greater of (a) the Prime Rate in
      effect on such day and
      (b) the
      Federal Funds Effective Rate in effect 

     

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    on
      such
      day plus1⁄2
of
      1%.
      Any change in the Alternate Base Rate due to a change in the Prime Rate or
      the
      Federal Funds Effective Rate shall be effective from and including the effective
      day of such change in the Prime Rate or the Federal Funds Effective Rate,
      respectively.

     

    “Amendment
      Effective Date”
is
      defined in Section
      9.2.

     

    “Amortization
      Event”
is
      defined in Article
      4.

     

    “APA
      Bank”
is
      defined in the recitals
      hereto.

     

    “APA
      Bank Funded Amount”
means,
      with respect to any Purchaser Group for any day, the excess, if any, of the
      Purchaser Group Invested Amount with respect to such Purchaser Group over the
      CP
      Conduit Funded Amount for such day.

     

    “APA
      Bank Percentage”
means,
      with respect to any APA Bank, the percentage set forth opposite the name of
      such
      APA Bank on Schedule I.

     

    “Applicable
      Margin”
is
      defined in the Fee Letter.

     

    “Applicable
      Option”
means,
      on any date, (a) Option 1 on the Enhancement Matrix during any period when
      Overconcentration Option 1 is in effect in accordance with Section
      13.18
      of the
      Base Indenture, (b) Option 2 on the Enhancement Matrix during any period when
      Overconcentration Option 2 is in effect in accordance with Section
      13.18
      of the
      Base Indenture or (c) Option 3 on the Enhancement Matrix during any period
      when
      Overconcentration Option 3 is in effect in accordance with Section
      13.18
      of the
      Base Indenture.

     

    “Article
      7 Costs”
means
      any amounts due pursuant to Article 7.

     

    “Asset
      Purchase Agreement”
means,
      with respect to any CP Conduit Purchaser, the asset purchase agreement,
      liquidity agreement or other agreement among such CP Conduit Purchaser, the
      Funding Agent with respect to such CP Conduit Purchaser and the APA Bank with
      respect to such CP Conduit Purchaser, as amended, modified or supplemented
      from
      time to time.

     

    “Assumed
      Lease Term”
means,
      with respect to any Series 2006-2 Yield Shortfall Lease, the number of months
      over which the Capitalized Cost of the related Leased Vehicle is being
      depreciated thereunder.

     

    “Available
      APA Bank Funding Amount”
means,
      with respect to any Purchaser Group for any Business Day, the sum of (i) the
      portion of such Purchaser Group’s Commitment Percentage of the Series 2006-2
      Initial Invested Amount not to be funded by such Purchaser Group by issuing
      Commercial Paper if such Business Day is the Series 2006-2 Initial Funding
      Date,
      (ii) the portion of the APA Bank Funded Amount with respect to such Purchaser
      Group not allocated to a Eurodollar Tranche on such Business Day, (iii) the
      portion of the APA Bank Funded Amount with respect 

     

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    to
      such
      Purchaser Group allocated to any Eurodollar Tranche the Eurodollar Period in
      respect of which expires on such Business Day and (iv) the portion of the
      Purchaser Group Increase Amount with respect to such Purchaser Group for such
      Business Day not to be funded by such Purchaser Group by issuing Commercial
      Paper.

     

    “Available
      CP Funding Amount”
means,
      with respect to any Purchaser Group for any Business Day, the sum of (i) the
      portion of such Purchaser Group’s Commitment Percentage of the Series 2006-2
      Initial Invested Amount to be funded by such Purchaser Group by issuing
      Commercial Paper if such Business Day is the Series 2006-2 Initial Funding
      Date,
      (ii) the portion of the CP Conduit Funded Amount with respect to such Purchaser
      Group allocated to any CP Tranche, the CP Rate Period in respect of which
      expires on such Business Day and (iii) the portion of the Purchaser Group
      Increase Amount with respect to such Purchaser Group for such Business Day
      to be
      funded by such Purchaser Group by issuing Commercial Paper.

     

    “Benefitted
      Purchaser Group”
is
      defined in Section
      12.12(a).

     

    “Board”
means
      the Board of Governors of the Federal Reserve System or any successor
      thereto.

     

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

     

    “Change
      in Law”
means
      (a) any law, rule or regulation or any change therein or in the interpretation
      or application thereof (whether or not having the force of law), in each case,
      adopted, issued or occurring after the Series 2006-2 Closing Date, (b) any
      request, guideline or directive (whether or not having the force of law) from
      any government or political subdivision or agency, authority, bureau, central
      bank, commission, department or instrumentality thereof, or any court, tribunal,
      grand jury or arbitrator , in each case, whether foreign or domestic (each
      an
“Official Body”) charged with the administration, interpretation or application
      thereof, or the compliance with any request or directive of any Official Body
      (whether or not having the force of law) made, issued or occurring after the
      Series 2006-2 Closing Date or (c) any request, guideline or directive (whether
      or not having the force of law) from any accounting board or authority (whether
      or not part of government) which is responsible for the establishment or
      interpretation of national or international accounting principles, in each
      case,
      whether foreign or domestic (each an “Accounting Body”) charged with the
      administration, interpretation or application thereof, or the compliance with
      any request or directive of any Accounting Body (whether or not having the
      force
      of law) made, issued or occurring after December 6, 2002.

     

    “Commercial
      Paper”
means,
      with respect to any CP Conduit Purchaser, the promissory notes issued by, or
      for
      the benefit of, such CP Conduit Purchaser in the commercial paper
      market.

     

    “Commitment”
means,
      with respect to the APA Banks included in any Purchaser Group, the obligation
      of
      such APA Banks to purchase a Series 2006-2 Investor Note on the Series 2006-2
      Initial Funding Date and, thereafter, to maintain and, subject to certain
      conditions, increase the Purchaser Group Invested Amount with respect to such
      Purchaser 

     

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    Group,
      in
      each case, in an amount up to the Maximum Purchaser Group Invested Amount with
      respect to such Purchaser Group.

     

    “Commitment
      Fee”
is
      defined in Section
      2.7(e).

     

    “Commitment
      Fee Payment”
is
      defined in Section
      5A.4(c)(vi).

     

    “Commitment
      Fee Rate”
is
      defined in the Fee Letter.

     

    “Commitment
      Percentage”
means,
      on any date of determination, with respect to any Purchaser Group, the ratio,
      expressed as a percentage, which such Purchaser Group’s Maximum Purchaser Group
      Invested Amount bears to the Series 2006-2 Maximum Invested Amount on such
      date.

     

    “Conduit
      Assignee”
means,
      with respect to any CP Conduit Purchaser, any commercial paper conduit
      administered by the Funding Agent with respect to such CP Conduit Purchaser
      and
      designated by such Funding Agent to accept an assignment from such CP Conduit
      Purchaser of the Purchaser Group Invested Amount with respect to such CP Conduit
      Purchaser pursuant to Section
      12.10(b).

     

    “CP
      Conduit Funded Amount”
means,
      with respect to any Purchaser Group for any day, the portion of the Purchaser
      Group Invested Amount with respect to such Purchaser Group funded by such
      Purchaser Group by issuing Commercial Paper on such day.

     

    “CP
      Conduit Purchaser”
is
      defined in the recitals hereto.

     

    “CP
      Rate Period”
means,
      with respect to any CP Tranche, a period of days not to exceed 270 days
      commencing on a Business Day selected in accordance with Section
      2.7(b);
      provided
      that (x)
      if a CP Rate Period would end on a day that is not a Business Day, such CP
      Rate
      Period shall end on the next succeeding Business Day and (y) during the Series
      2006-2 Amortization Period, each CP Rate Period shall end on or prior to the
      next succeeding Payment Date.

     

    “CP
      Tranche”
means,
      with respect to a Match Funding CP Conduit Purchaser, a portion of the CP
      Conduit Funded Amount with respect to such Match Funding CP Conduit Purchaser
      for which the Monthly Funding Costs with respect to such Match Funding CP
      Conduit Purchaser is calculated by reference to a particular Discount and a
      particular CP Rate Period.

     

    “Daily
      Principal Utilization Amount”
means,
      for any Business Day, the sum of the following amounts to be withdrawn from
      the
      Series 2006-2 Principal Collection Subaccount pursuant to Section 5A.2(g) on
      such Business Day: (i) the amount of any Decrease to be applied to reduce the
      Series 2006-2 Invested Amount pursuant to Section
      2.5,
      (ii)
      the amount that the Issuer has elected to apply to reduce the principal amount
      of any Outstanding Series of Investor Notes (other than the Series 2006-2
      Investor Notes) and (iii) the portion of the Loan to be made to Holdings on
      such
      Business Day pursuant 

     

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    to
      the
      Loan Agreement to be financed with the proceeds of the Series 2006-2 Investor
      Notes.

     

    “Decrease”
is
      defined in Section
      2.5(a).

     

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

     

    “Discount”
means,
      with respect to any Match Funding CP Conduit Purchaser, the interest or discount
      component of the Commercial Paper issued by such Match Funding CP Conduit
      Purchaser to fund or maintain the CP Conduit Funded Amount with respect to
      such
      Match Funding CP Conduit Purchaser, including an amount equal to the portion
      of
      the face amount of the outstanding Commercial Paper issued to fund or maintain
      the CP Conduit Funded Amount with respect to such CP Conduit Purchaser that
      corresponds to the portion of the proceeds of such Commercial Paper that was
      used to pay the interest or discount component of maturing Commercial Paper
      issued to fund or maintain such CP Conduit Funded Amount, to the extent that
      such CP Conduit Purchaser has not received payments of interest in respect
      of
      such interest component prior to the maturity date of such maturing Commercial
      Paper, and including the portion of such interest or discount component
      constituting dealer or placement agent commissions and (b) with respect to
      any
      Pooled Funding CP Conduit Purchaser, the amount of interest or discount to
      accrue on or in respect of the Commercial Paper issued by such Pooled Funding
      CP
      Conduit Purchaser allocated, in whole or in part, by the Funding Agent with
      respect to such Pooled Funding CP Conduit Purchaser, to fund the purchase or
      maintenance of the CP Conduit Funded Amount with respect to such Pooled Funding
      CP Conduit Purchaser (including, without limitation, any interest attributable
      to the commissions of placement agents and dealers in respect of such Commercial
      Paper and any costs associated with funding small or odd-lot amounts, to the
      extent that such commissions or costs are allocated, in whole or in part, to
      such Commercial Paper by such Funding Agent).

     

    “Effective
      Date”
is
      defined in Section
      9.1.

     

    “Eligible
      Assignee”
means
      a
      financial institution having short-term debt ratings of at least A-1 from
      Standard & Poor’s and P-1 from Moody’s.

     

    “Enhancement
      Matrix”
means
      the following matrix:

     

    
      	 	 	
              Option
                1

            	
               

            	
              Option
                2

            	
               

            	
              Option
                3

            	 
	
              Level
                1 Required Enhancement Percentage 

               

            	 	 	
              5.263

              
              

            	
              %

              
              

            	 	
              5.541

              
              

            	
              %

              
              

            	 	
              5.820

              
              

            	
              %

              
              

            
	
              Level
                2 Required Enhancement Percentage 

               

            	 	 	
              6.093

              
              

            	
              %

              
              

            	 	
              6.371

              
              

            	
              %

              
              

            	 	
              6.650

              
              

            	
              %

              
              

            
	
              Level
                3 Required Enhancement Percentage

               

            	 	 	
              6.913

              
              

            	
              %

              
              

            	 	
              7.191

              
              

            	
              %

              
              

            	 	
              7.470

              
              

            	
              %

              
              

            
	
              Required
                Reserve Account Amount Percentage

               

            	 	 	
              2.064

              
              

            	
              %

              
              

            	 	
              2.322

              
              

            	
              %

              
              

            	 	
              2.455

              
              

            	
              %

              
              

            

    

     

    
 

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    “Equipment”
means
      any Vehicle that is not a Car, a Forklift, a Heavy-Duty Truck, a Medium-Duty
      Truck, a Truck Body or a Trailer.

     

    “Eurodollar
      Period”
means,
      with respect to any Eurodollar Tranche and any Purchaser Group:

     

    (c)  initially,
      the period commencing on the Series 2006-2 Initial Funding Date, the Increase
      Date or a conversion date, as the case may be, with respect to such Eurodollar
      Tranche and ending one month thereafter (or such other period which is
      acceptable to the Funding Agent with respect to such Purchaser Group and which
      in no event will be less than 7 days); and

     

    (d)  thereafter,
      each period commencing on the last day of the immediately preceding Eurodollar
      Period applicable to such Eurodollar Tranche and ending one month thereafter
      (or
      such other period which is acceptable to the Funding Agent with respect to
      such
      Purchaser Group and which in no event will be less than 7 days);

     

    provided
      that all
      Eurodollar Periods must end on the next Payment Date and all of the foregoing
      provisions relating to Eurodollar Periods are subject to the
      following:

     

    (i)  if
      any
      Eurodollar Period would otherwise end on a day that is not a Business Day,
      such
      Eurodollar Period shall be extended to the next succeeding Business Day unless
      the result of such extension would be to carry such Eurodollar Period into
      another calendar month, in which event such Eurodollar Period shall end on
      the
      immediately preceding Business Day; and

     

    (ii)  any
      Eurodollar Period that begins on the last Business Day of a calendar month
      (or
      on a day for which there is no numerically corresponding day in the calendar
      month at the end of such Eurodollar Period) shall end on the last Business
      Day
      of the calendar month at the end of such Eurodollar Period.

     

    “Eurodollar
      Tranche”
means,
      with respect to any Purchaser Group, a portion of the APA Bank Funded Amount
      with respect to such Purchaser Group allocated to a particular Eurodollar Period
      and an Adjusted LIBO Rate determined by reference thereto.

     

    “Excess
      Alternative Vehicle Amount”
means,
      on any Settlement Date, an amount equal to the excess, if any, of (a) the sum
      of

     

    (i)
      the
      aggregate Lease Balance of all Eligible Leases the related Leased Vehicle of
      which is not a Car allocated to the Lease SUBI as of the last day of the Monthly
      Period immediately preceding such Settlement Date plus 

     

    (ii)
      an
      amount equal to the aggregate for each Unit Vehicle which is not a Car subject
      to a Closed-End Lease allocated to the Lease SUBI as of the last day of such
      Monthly Period of the lesser of (A) the Stated Residual Value of such

     

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    Unit
      Vehicle and (B) the Net Book Value of such Unit Vehicle as of the last day
      of
      such Monthly Period;

     

    over
      (b)
      an amount equal to 31.5% of the Aggregate Unit Balance as of such Settlement
      Date.

     

    “Excess
      Equipment Amount”
means,
      on any Settlement Date, an amount equal to the excess, if any, of (a) the sum
      of

     

    (i)
      the
      aggregate Lease Balance of all Eligible Leases the related Leased Vehicle of
      which is Equipment allocated to the Lease SUBI as of the last day of the Monthly
      Period immediately preceding such Settlement Date plus 

     

    (ii)
      an
      amount equal to the aggregate for each Unit Vehicle which is Equipment subject
      to a Closed-End Lease allocated to the Lease SUBI as of the last day of such
      Monthly Period of the lesser of (A) the Stated Residual Value of such Unit
      Vehicle and (B) the Net Book Value of such Unit Vehicle as of the last day
      of
      such Monthly Period; 

     

    over
      (b)
      an amount equal to 5% of the Aggregate Unit Balance as of such Settlement Date.
      

     

    “Excess
      Forklift Amount”
means,
      on any Settlement Date, an amount equal to the excess, if any, of (a) the sum
      of

     

    (i)
      the
      aggregate Lease Balance of all Eligible Leases the related Leased Vehicle of
      which is a Forklift allocated to the Lease SUBI as of the last day of the
      Monthly Period immediately preceding such Settlement Date plus 

     

    (ii)
      an
      amount equal to the aggregate for each Unit Vehicle which is a Forklift subject
      to a Closed-End Lease allocated to the Lease SUBI as of the last day of such
      Monthly Period of the lesser of (A) the Stated Residual Value of such Unit
      Vehicle and (B) the Net Book Value of such Unit Vehicle as of the last day
      of
      such Monthly Period; 

     

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

     

    “Excess
      Heavy-Duty Truck Amount”
means,
      on any Settlement Date, an amount equal to the excess, if any, of (a) the sum
      of

     

    (i)
      the
      aggregate Lease Balance of all Eligible Leases the related Leased Vehicle of
      which is a Heavy-Duty Truck allocated to the Lease SUBI as of the last day
      of
      the Monthly Period immediately preceding such Settlement Date plus 

     

    (ii)
      an
      amount equal to the aggregate for each Unit Vehicle which is a Heavy-Duty Truck
      subject to a Closed-End Lease allocated to the Lease SUBI as of the last day
      of
      such Monthly Period of the lesser of (A) the Stated Residual 

     

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    Value
      of
      such Unit Vehicle and (B) the Net Book Value of such Unit Vehicle as of the
      last
      day of such Monthly Period; 

     

    over
      (b)
      an amount equal to 7.5% of the Aggregate Unit Balance as of such Settlement
      Date.

     

    “Excess
      Medium-Duty Truck Amount”
means,
      on any Settlement Date, an amount equal to the excess, if any, of (a) the sum
      of

     

    (i)
      the
      aggregate Lease Balance of all Eligible Leases the related Leased Vehicle of
      which is a Medium-Duty Truck allocated to the Lease SUBI as of the last day
      of
      the Monthly Period immediately preceding such Settlement Date plus 

     

    (ii)
      an
      amount equal to the aggregate for each Unit Vehicle which is a Medium-Duty
      Truck
      subject to a Closed-End Lease allocated to the Lease SUBI as of the last day
      of
      such Monthly Period of the lesser of (A) the Stated Residual Value of such
      Unit
      Vehicle and (B) the Net Book Value of such Unit Vehicle as of the last day
      of
      such Monthly Period;

     

    over
      (b)
      an amount equal to 15.0% of the Aggregate Unit Balance as of such Settlement
      Date.

     

    “Excess
      Trailer Amount”
means,
      on any Settlement Date, an amount equal to the excess, if any, of (a) the sum
      of

     

    (i)
      the
      aggregate Lease Balance of all Eligible Leases the related Leased Vehicle of
      which is a Trailer allocated to the Lease SUBI as of the last day of the Monthly
      Period immediately preceding such Settlement Date plus 

     

    (ii)
      an
      amount equal to the aggregate for each Unit Vehicle which is a Trailer subject
      to a Closed-End Lease allocated to the Lease SUBI as of the last day of such
      Monthly Period of the lesser of (A) the Stated Residual Value of such Unit
      Vehicle and (B) the Net Book Value of such Unit Vehicle as of the last day
      of
      such Monthly Period; 

     

    over
      (b)
      an amount equal to 3% of the Aggregate Unit Balance as of such Settlement
      Date.

     

    “Excess
      Truck Amount”
means,
      on any Settlement Date, an amount equal to the greater of (a) the sum of (i)
      the
      Excess Heavy-Duty Truck Amount on such Settlement Date and (ii) the Excess
      Medium-Duty Truck Amount on such Settlement Date and (b) an amount equal to
      the
      excess, if any, of (x) the sum of 

     

    (i)
      the
      aggregate Lease Balance of all Eligible Leases the related Leased Vehicle of
      which is a Medium-Duty Truck or a Heavy-Duty Truck allocated to the Lease SUBI
      as of the last day of the Monthly Period immediately preceding such Settlement
      Date plus 

     

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    (ii)
      an
      amount equal to the aggregate for each Unit Vehicle which is a Medium-Duty
      Truck
      or a Heavy-Duty Truck subject to a Closed-End Lease allocated to the Lease
      SUBI
      as of the last day of such Monthly Period of the lesser of (A) the Stated
      Residual Value of such Unit Vehicle and (B) the Net Book Value of such Unit
      Vehicle as of the last day of such Monthly Period;

     

    over
      (y)
      an amount equal to 21.5% of the Aggregate Unit Balance as of such Settlement
      Date.

     

    “Excess
      Truck Body Amount”
means,
      on any Settlement Date, an amount equal to the excess, if any, of (a) the sum
      of

     

    (i)
      the
      aggregate Lease Balance of all Eligible Leases the related Leased Vehicle of
      which is a Truck Body allocated to the Lease SUBI as of the last day of the
      Monthly Period immediately preceding such Settlement Date plus 

     

    (ii)
      an
      amount equal to the aggregate for each Unit Vehicle which is a Truck Body
      subject to a Closed-End Lease allocated to the Lease SUBI as of the last day
      of
      such Monthly Period of the lesser of (A) the Stated Residual Value of such
      Unit
      Vehicle and (B) the Net Book Value of such Unit Vehicle as of the last day
      of
      such Monthly Period;

     

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

     

    “Excluded
      Taxes”
means,
      with respect to the Administrative Agent, any CP Conduit Purchaser, any APA
      Bank, any Funding Agent, any Program Support Provider or any other recipient
      of
      any payment to be made by or on account of any obligation of the Issuer
      hereunder, (a) income or franchise taxes imposed on (or measured by) its net
      income by the United States of America or by any other Governmental Authority,
      in each case, as a result of a present or former connection between the United
      States of America or the jurisdiction of such Governmental Authority imposing
      such tax, as the case may be, and the Administrative Agent, such CP Conduit
      Purchaser, such APA Bank, such Funding Agent, such Program Support Provider
      or
      any other such recipient (except a connection arising solely from the
      Administrative Agent’s, such CP Conduit Purchaser’s, such APA Bank’s, such
      Program Support Provider’s or such recipient’s having executed, delivered or
      performed its obligations hereunder, receiving a payment hereunder or enforcing
      the Series 2006-2 Investor Notes) and (b) any branch profits tax imposed by
      the
      United States of America or any similar tax imposed by any other jurisdiction
      in
      which the Issuer is located (except any such branch profits or similar tax
      imposed as a result of a connection with the United States of America or other
      jurisdiction as a result of a connection arising solely from the Administrative
      Agent’s, such CP Conduit Purchaser’s, such APA Bank’s, such Program Support
      Provider’s or such recipient’s having executed, delivered or performed its
      obligations hereunder, receiving a payment hereunder or enforcing the Series
      2006-2 Investor Notes).

     

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    “Expiry
      Date”
means,
      with respect to any Purchaser Group, the earlier of (a) the Scheduled Expiry
      Date with respect to such Purchaser Group and (b) the date on which an
      Amortization Event shall have been declared or automatically
      occurred.

     

    “Extending
      Purchaser Group”
shall
      mean a Purchaser Group other than a Non-Extending Purchaser Group.

     

    “Federal
      Funds Effective Rate”
means,
      for any day, the weighted average (rounded upwards, if necessary, to the next
      1/100 of 1%) of the rates on overnight Federal funds transactions with members
      of the Federal Reserve System arranged by Federal funds brokers, as published
      on
      the next succeeding Business Day by the Federal Reserve Bank of New York,
      or, if such rate is not so published for any day that is a Business Day, the
      average (rounded upwards, if necessary, to the next 1/100 of 1%) of the
      quotations for such day of such transactions received by the Administrative
      Agent from three Federal funds brokers of recognized standing selected by
      it.

     

    “Fee
      Letter”
means
      the Fee Letter dated the date hereof executed by and between the Issuer, the
      Administrator, the Administrative Agent and the Funding Agent with respect
      to
      each Purchaser Group, as the same may be amended, restated, supplemented or
      otherwise modified from time to time.

     

    “Final
      Maturity Date”
means
      the Payment Date that occurs in the 125th month after the month in which the
      Series 2006-2 Amortization Period shall have commenced.

     

    “Financial
      Assets”
is
      defined in Section 5A.13(b)(i).

     

    “Floating
      Tranche”
means,
      with respect to any Purchaser Group, the portion of the APA Bank Funded Amount
      with respect to such Purchaser Group not allocated to a Eurodollar
      Tranche.

     

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

     

    “Funding
      Agent”
is
      defined in the recitals hereto.

     

    “Gross
      Vehicle Weight”
means
      the maximum manufacturer recommended weight that the axels of a Truck or Tractor
      can carry including the weight of the Truck or Tractor.

     

    “Heavy-Duty
      Truck”
means
      a
      Truck or Tractor having a Gross Vehicle Weight of over 33,000
      pounds.

     

    “Increase
      Amount”
is
      defined in Section 2.3(a).

     

    “Increase
      Date”
is
      defined in Section 2.3(a).

     

    “Increased
      Costs”
means,
      for each Payment Date, the sum of (1) any Article 7 Costs due and payable on
      such Payment Date, (2) any other unpaid Program Costs due 

     

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    and
      payable on such Payment Date, (3) any amounts due and payable pursuant to
Section
      2.8
      on such
      Payment Date and (4) the Increased Costs Carry Forward Amount for the preceding
      Payment Date.

     

    “Increased
      Costs Carry Forward Amount”
means,
      for each Payment Date, the excess, if any, of (a) Increased Costs for such
      Payment Date over (b) the aggregate amount deposited in the Series 2006-2
      Distribution Account on account of the Increased Costs for such Payment Date
      pursuant to Sections
      5A.4(c)(ix)
      and
(xv).

     

    “Increases”
is
      defined in Section
      2.3(a).

     

    “Indemnified
      Taxes”
means
      Taxes other than Excluded Taxes.

     

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

     

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

     

    “Lease
      Rate Cap Costs”
means,
      for each Payment Date, any amounts owed by the Issuer to the Series 2006-2
      Investor Noteholders pursuant to Section
      5A.12(e)
      on such
      Payment Date.

     

    “Lease
      Rate Cap Event”
means
      the failure on the part of the Issuer to have the Lease Rate Caps that it is
      required to have in accordance with Section
      5A.12.
      

     

    “Level
      1 Required Enhancement Percentage”
means
      on any date the percentage set forth in the Enhancement Matrix on the line
      titled “Level 1 Required Enhancement Percentage” for the Applicable
      Option.

     

    “Level
      2 Required Enhancement Percentage”
means
      on any date the percentage set forth in the Enhancement Matrix on the line
      titled “Level 2 Required Enhancement Percentage” for the Applicable
      Option.

     

    “Level
      3 Required Enhancement Percentage”
means
      on any date the percentage set forth in the Enhancement Matrix on the line
      titled “Level 3 Required Enhancement Percentage” for the Applicable
      Option.

     

    “JPMorgan
      Chase”
means
      JPMorgan Chase Bank, National Association, and its successors and
      assigns.

     

    “LIBO
      Rate”
means,
      with respect to each day during each Eurodollar Period pertaining to a
      Eurodollar Tranche, the rate appearing on Telerate Page 3750 at approximately
      11:00 a.m. (London time) on the second Business Day prior to the commencement
      of
      such Eurodollar Period, as the rate for dollar deposits with a maturity
      comparable to the Eurodollar Period applicable to such Eurodollar Tranche.
      

     

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

     

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    “Match
      Funding CP Conduit Purchaser”
means
      each CP Conduit Purchaser that is identified on Schedule I as a Match Funding
      CP
      Conduit Purchaser and each CP Conduit Purchaser that, after the Series 2006-2
      Closing Date, notifies the Issuer and the Administrative Agent in accordance
      with Section
      2.7(d)
      in
      writing that it is funding its CP Conduit Funded Amount with Commercial Paper
      issued by it, or for its benefit, in specified CP Tranches selected in
      accordance with Sections
      2.7(b)
      and
(c)
      and
      that, in each case, has not subsequently notified the Issuer and the
      Administrative Agent in writing that the Issuer will no longer be permitted
      to
      select CP Tranches in accordance with Sections
      2.7(b)
      and
(c)
      in
      respect of the CP Conduit Funded Amount with respect to such CP Conduit
      Purchaser.

     

    “Maximum
      Purchaser Group Invested Amount”
means,
      with respect to any Purchaser Group, the amount set forth opposite the name
      of
      the CP Conduit Purchaser included in such Purchaser Group on Schedule I, as
      such amount may be increased or reduced from time to time as provided in
Section
      2.6.
      The
      Maximum Purchaser Group Invested Amount with respect to each Non-Extending
      Purchaser Group shall be reduced to zero on the Scheduled Expiry Date with
      respect to such Purchaser Group.

     

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

     

    “Monthly
      Funding Costs”
means,
      with respect to each Series 2006-2 Interest Period and any Purchaser Group,
      the
      sum of: 

     

    (a)  for
      each
      day during such Series 2006-2 Interest Period, (i) with respect to a Match
      Funding CP Conduit Purchaser, the aggregate amount of Discount accruing on
      all
      outstanding Commercial Paper issued by, or for the benefit of, such Match
      Funding CP Conduit Purchaser to fund the CP Conduit Funded Amount with respect
      to such Match Funding CP Conduit Purchaser on such day or (ii) with respect
      to a
      Pooled Funding CP Conduit Purchaser, the aggregate amount of Discount accruing
      on or otherwise in respect of the Commercial Paper issued by, or for the benefit
      of, such Pooled Funding CP Conduit Purchaser allocated, in whole or in part,
      by
      the Funding Agent with respect to such Pooled Funding CP Conduit Purchaser,
      to
      fund the purchase or maintenance of the CP Conduit Funded Amount with respect
      to
      such Pooled Funding CP Conduit Purchaser; plus 

     

    (b)  for
      each
      day during such Series 2006-2 Interest Period, the sum of:

     

    (i)  the
      product of (A) the portion of the APA Bank Funded Amount with respect to such
      Purchaser Group allocated to the Floating Tranche with respect to such Purchaser
      Group on such day times
      (B) the
      Alternate Base Rate, divided
      by (C)
      365 (or 366, as the case may be) plus

     

    (ii)  the
      product of (A) the portion of the APA Bank Funded Amount with respect to such
      Purchaser Group allocated to Eurodollar Tranches with respect to such Purchaser
      Group on such day times
      (B) the
      weighted average Adjusted LIBO Rate with respect to such Eurodollar Tranches
      plus
      the

     

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    Applicable
      Margin on such day in effect with respect thereto divided
      by (C)
      360; plus 

     

    (c)  for
      each
      day during such Series 2006-2 Interest Period, the product of (A) the CP Conduit
      Funded Amount with respect to such Purchaser Group on such day times
      (B) the
      Program Fee Rate on such day, divided
      by (C)
      360.

     

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

     

    “Monthly
      Principal Payment”
is
      defined in Section
      5A.6.

     

    “New
      York UCC”
is
      defined in Section 5A.13(b)(i).

     

    “Non-Extending
      Purchaser Group”
means
      any Purchaser Group who shall not have agreed to an extension of its Scheduled
      Expiry Date pursuant to Section
      2.6(b).

     

    “Optional
      Termination Date”
is
      defined in Section
      2.5(b).

     

    “Optional
      Termination Notice”
is
      defined in Section
      2.5(b).

     

    “Other
      Taxes”
means
      any and all current or future stamp or documentary taxes or other excise or
      property taxes, charges or similar levies arising from any payment made under
      the Transaction Documents or from the execution, delivery or enforcement of,
      or
      otherwise with respect to, any Transaction Document.

     

    “Outstanding”
means,
      with respect to the Series 2006-2 Investor Notes, the Series 2006-2 Invested
      Amount shall not have been reduced to zero and all accrued interest and other
      amounts owing on the Series 2006-2 Investor Notes and to the Administrative
      Agent, the Funding Agents, the CP Conduit Purchasers and the APA Banks hereunder
      shall not have been paid in full.

     

    “Participants”
is
      defined in Section
      12.10(d).

     

    “Paydown
      Period”
means
      any period from and including the Expiry Date with respect to any Purchaser
      Group to but excluding the earlier of (a) the date on which the Purchaser Group
      Invested Amount with respect to such Purchaser Group shall have been reduced
      to
      zero and (b) the commencement of the Series 2006-2 Amortization
      Period.

     

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

     

    “PHH
      Credit Agreement”
means
      the Amended and Restated Competitive
      Advance
      and Revolving Credit Agreement, dated as of January 6, 2006, among PHH, PHH
      Vehicle Management Services Inc., the lenders referred to therein, Citicorp
      USA,
      Inc. as syndication agent, The Bank of Nova Scotia and Wachovia Bank, National
      Association, as co-documentation agents, and JPMorgan Chase, as administrative
      agent for the lenders.

     

    “Pooled
      Funding CP Conduit Purchaser”
means
      each CP Conduit Purchaser that is not a Match Funding CP Conduit
      Purchaser.

     

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    “Prepayment
      Date”
is
      defined in Article
      5.

     

    “Prime
      Rate”
means
      the rate of interest per annum publicly announced from time to time by JPMorgan
      Chase as its prime rate in effect at its principal office in New York City;
      each
      change in the Prime Rate shall be effective from and including the date such
      change is publicly announced as being effective.

     

    “Principal
      Overpayment Amount”
means,
      for each Settlement Date, the excess, if any, of (a) the aggregate amount
      withdrawn from the Series 2006-2 General Collection Subaccount and deposited
      in
      the Series 2006-2 Principal Collection Subaccount pursuant to Section
      5A.2(f)
      during
      the immediately preceding Monthly Period over (b) the Series 2006-2 Principal
      Payment Amount for such Settlement Date.

     

    “Program
      Fee Rate”
is
      defined in the Fee Letter.

     

    “Program
      Costs”
shall
      mean the sum of (i) all expenses, indemnities and other amounts due and
      payable to the Administrative Agent, the CP Conduit Purchasers, the Funding
      Agents, the Program Support Providers and the APA Banks under the Indenture
      or
      this Indenture Supplement (including, without limitation, any Article 7 Costs)
      and (ii) the product of (A) all unpaid fees and expenses due and payable to
      counsel to, and independent auditors of, the Issuer (other than fees and
      expenses payable on or in connection with the closing of the issuance of Series
      2006-2 or any other Series) and (B) a fraction, the numerator of which is the
      Series 2006-2 Maximum Invested Amount and the denominator of which is the sum
      of
      (x) the aggregate commitment amounts on such Business Day (in respect of any
      variable funding notes of any other Outstanding Series), (y) the Series 2006-2
      Maximum Invested Amount plus
      (z) the
      aggregate Invested Amounts of all other Outstanding Series (other than variable
      funding notes).

     

    “Program
      Support Provider”
means,
      with respect to any CP Conduit Purchaser, the APA Bank with respect to such
      CP
      Conduit Purchaser and any other or additional Person now or hereafter extending
      credit, or having a commitment to extend credit to or for the account of, or
      to
      make purchases from, such CP Conduit Purchaser or issuing a letter of credit,
      surety bond or other instrument to support any obligations arising under or
      in
      connection with such CP Conduit Purchaser’s securitization program.

     

    “Pro
      Rata Share”
means,
      with respect to any Purchaser Group, on any date, the ratio, expressed as a
      percentage, which the Purchaser Group Invested Amount with respect to such
      Purchaser Group bears to the Series 2006-2 Invested Amount on such
      date.

     

    “Purchaser
      Group”
means,
      collectively, a CP Conduit Purchaser and the APA Banks with respect to such
      CP
      Conduit Purchaser.

     

    “Purchaser
      Group Increase Amount”
means,
      with respect to any Purchaser Group, for any Business Day, such Purchaser
      Group’s Commitment Percentage of the Increase Amount, if any, on such Business
      Day.

     

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    “Purchaser
      Group Invested Amount”
means,
      with respect to any Purchaser Group, (a) when used with respect to the Series
      2006-2 Initial Funding Date, such Purchaser Group’s Commitment Percentage of the
      Series 2006-2 Initial Invested Amount and (b) when used with respect to any
      other date, an amount equal to (i) the Purchaser Group Invested Amount with
      respect to such Purchaser Group on the immediately preceding Business Day
plus
      (ii)
      such Purchaser Group’s Commitment Percentage of any Increase Amount made
      pursuant to Section
      2.3
      on such
      day minus
      (iii)
      the amount of principal payments made to such Purchaser Group pursuant to
Section
      5A.7
      on such
      date.

     

    “Purchaser
      Group Supplement”
is
      defined in Section 12.10(e).

     

    “Rating
      Agencies”
means,
      with respect to the Series 2006-2 Investor Notes, Standard & Poor’s and
      Moody’s and any other nationally recognized rating agency from which a rating
      for the Commercial Paper with respect to any CP Conduit Purchaser was requested
      by such CP Conduit Purchaser.

     

    “Rating
      Agency Condition”
means,
      with respect to any action specified herein as requiring satisfaction of the
      Rating Agency Condition, that each Rating Agency shall have been given 10 days’
(or such shorter period as shall be acceptable to each Rating Agency) prior
      notice thereof and that each of the Rating Agencies shall have notified the
      Administrative Agent, each CP Conduit Purchaser and the Funding Agent with
      respect to such CP Conduit Purchaser in writing that such action will not result
      in a reduction or withdrawal of the then current rating of the Commercial Paper
      with respect to such CP Conduit Purchaser.

     

    “Record
      Date”
means,
      with respect to each Payment Date, the immediately preceding Business
      Day.

     

    “Related
      Purchaser Group”
means,
      with respect to any Funding Agent, the CP Conduit Purchaser identified next
      to
      such Funding Agent on Schedule I and each APA Bank identified on Schedule I
      next
      to such CP Conduit Purchaser.

     

    “Required
      Reserve Account Amount Percentage”
means
      on any date the percentage set forth in the Enhancement Matrix on the line
      titled “Required Reserve Account Amount Percentage” for the Applicable Option.

     

    “Scheduled
      Expiry Date”
shall
      mean, with respect to any Purchaser Group, the later of (a) November 30, 2007
      and (b) the last day of any extension of the Commitment of the APA Banks
      included in such Purchaser Group made in accordance with Section
      2.6(b).

     

    “Securities
      Intermediary”
is
      defined in Section 5A.13(a).

     

    “Series
      2006-2”
means
      Series 2006-2, the Principal Terms of which are set forth in this Indenture
      Supplement.

     

    “Series
      2006-2 Administrator Fee”
is
      defined in Section 6.2.

     

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    “Series
      2006-2 Allocated Adjusted Aggregate Unit Balance”
means,
      as of any date of determination, the product of (a) the Adjusted Aggregate
      Unit
      Balance and (b) the percentage equivalent of a fraction the numerator of which
      is the Series 2006-2 Required Asset Amount as of such date and the denominator
      of which is the sum of (x) the Series 2006-2 Required Asset Amount and (y)
      the
      aggregate Required Asset Amounts with respect to each other Series of Investor
      Notes as of such date, including all Series of Investor Notes that have been
      paid in full but as to which the Amortization Period shall have not
      ended.

     

    “Series
      2006-2 Allocated Asset Amount Deficiency”
means,
      as of any date of determination, the amount, if any, by which the Series 2006-2
      Allocated Adjusted Aggregate Unit Balance is less than the Series 2006-2
      Required Asset Amount as of such date.

     

    “Series
      2006-2 Amortization Period”
means
      the period commencing on the Business Day following the earliest to occur of
      (i)
      the date on which the Expiry Date with respect to each Purchaser shall have
      occurred, (ii) the Optional Termination Date and (iii) the Prepayment Date
      and
      ending on the date when the Series 2006-2 Invested Amount shall have been
      reduced to zero and all accrued interest and other amounts owing on the Series
      2006-2 Investor Notes and to the Administrative Agent, the CP Conduit
      Purchasers, the Funding Agents and the APA Banks shall have been paid in
      full.

     

    “Series
      2006-2 Basic Servicing Fee”
is
      defined in Section
      6.1.

     

    “Series
      2006-2 Closing Date”
means
      March 7, 2006.

     

    “Series
      2006-2 Collateral”
means
      the Collateral, the Series 2006-2 Reserve Account, the Series 2006-2 Yield
      Supplement Account and the Series 2006-2 Distribution Account.

     

    “Series
      2006-2 Collection Subaccount”
      is defined in Section
      5A.1(a).

     

    “Series
      2006-2 Daily Principal Allocation”
is
      defined in Section
      5A.2(b).

     

    “Series
      2006-2 Designated Account” is defined in Section 5A.13(a).

     

    “Series
      2006-2 Distribution Account”
is
      defined in Section
      5A.11(a).

     

    “Series
      2006-2 Eligible Counterparty”
means
      a
      financial institution having on the date of any acquisition of a Lease Rate
      Cap
      short-term debt ratings of “A-1+” by Standard & Poor’s and “P-1” by Moody’s
      and long-term unsecured debt ratings of at least “A+” by Standard & Poor’s
      and “Aa3” by Moody’s.

     

    “Series
      2006-2 Excess Fleet Receivable Amount”
means,
      for any Settlement Date, an amount equal to the product of (a) the average
      daily
      Series 2006-2 Invested Percentage during the immediately preceding Monthly
      Period and (b) the Excess Fleet Receivable Amount for such Settlement
      Date.

     

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

    “Series
      2006-2 Gain on Sale Account Percentage”
means
      10%.

     

    “Series
      2006-2 Hypothetical Yield Shortfall Amount”
means,
      for any Settlement Date, an amount equal to the product of (x) the excess,
      if
      any, of the Series 2006-2 Minimum Yield Rate for such Settlement Date over
      the
      CP Rate as of the last day of the immediately preceding Monthly Period, (y)
      the
      Series 2006-2 Invested Percentage on such Settlement Date of the aggregate
      Lease
      Balance of all Floating Rate Leases as of the last day of the immediately
      preceding Monthly Period and (z) 2.75.

     

    “Series
      2006-2 Initial Funding Date”
is
      defined in Section
      2.1(a).

     

    “Series
      2006-2 Initial Invested Amount”
is
      defined in Section
      2.3(a).

     

    “Series
      2006-2 Interest Period”
means
      a
      period commencing on and including a Payment Date and ending on and including
      the day preceding the next succeeding Payment Date; provided,
      however, that the initial Series 2006-2 Interest Period shall commence on and
      include the Series 2006-2 Initial Funding Date and end on and include April
      6,
      2006.

     

    “Series
      2006-2 Invested Amount”
means,
      on any date of determination, the sum of the Purchaser Group Invested Amounts
      with respect to each of the Purchaser Groups on such date.

     

    “Series
      2006-2 Invested Percentage”
means,
      with respect to any Business Day (i) during the Series 2006-2 Revolving Period,
      the percentage equivalent (which percentage shall never exceed 100%) of a
      fraction the numerator of which shall be equal to the Series 2006-2 Allocated
      Adjusted Aggregate Unit Balance as of the end of the immediately preceding
      Business Day and the denominator of which is the sum of the numerators used
      to
      determine invested percentages for allocations for all Series of Investor Notes
      (and all classes of such Series of Investor Notes), including all Series of
      Investor Notes that have been paid in full but as to which the Amortization
      Period shall have not ended, as of the end of such immediately preceding
      Business Day or (ii) during the Series 2006-2 Amortization Period, the
      percentage equivalent (which percentage shall never exceed 100%) of a fraction
      the numerator of which shall be equal to the Series 2006-2 Allocated Adjusted
      Aggregate Unit Balance as of the end of the Series 2006-2 Revolving Period,
      and
      the denominator of which is the sum of the numerators used to determine invested
      percentages for allocations for all Series of Investor Notes (and all classes
      of
      such Series of Investor Notes), including all Series of Investor Notes that
      have
      been paid in full but as to which the Amortization Period shall have not ended,
      as of the end of the immediately preceding Business Day.

     

    “Series
      2006-2 Investor Noteholder”
means
      the Person in whose name a Series 2006-2 Investor Note is registered in the
      Note
      Register.

     

    “Series
      2006-2 Investor Notes”
means
      any one of the Series 2006-2 Floating Rate Asset Backed Variable Funding
      Investor Notes, executed by the Issuer and authenticated and delivered by the
      Indenture Trustee, substantially in the form of Exhibit A hereto.

     

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

    “Series
      2006-2 Liquid Credit Enhancement Deficiency”
means,
      on any date of determination, the amount by which the Series 2006-2 Reserve
      Account Amount is less than the Series 2006-2 Required Reserve Account
      Amount.

     

    “Series
      2006-2 Maximum Invested Amount”
means,
      on any date of determination, the sum of the Maximum Purchaser Group Invested
      Amounts with respect to each of the Purchaser Groups on such date. The Series
      2006-2 Maximum Invested Amount shall be reduced by the Maximum Purchaser Group
      Invested Amount of each Non-Extending Purchaser Group on the Scheduled Expiry
      Date with respect to such Purchaser Group.

     

    “Series
      2006-2 Minimum Yield Rate”
means,
      for any Settlement Date, a rate per annum equal to the sum of (i) the Series
      2006-2 Note Rate for the Series 2006-2 Interest Period ending on the day before
      such Settlement Date, (ii) 0.225% and (iii) 0.60%.

     

    “Series
      2006-2 Monthly Interest”
is
      defined in Section
      5A.3(a).

     

    “Series
      2006-2 Monthly Residual Value Gain”
means,
      for any Settlement Date, an amount equal to the product of (a) the average
      daily
      Series 2006-2 Invested Percentage during the immediately preceding Monthly
      Period and (b) the Monthly Residual Value Gain for such Settlement
      Date.

     

    “Series
      2006-2 Monthly Servicer Advance Reimbursement Amount”
means,
      for each Payment Date, an amount equal to the product of (a) the Monthly
      Servicer Advance Reimbursement Amount for such Payment Date and (b) the average
      daily Series 2006-2 Invested Percentage during the immediately preceding Monthly
      Period.

     

    “Series
      2006-2 Note Rate”
means
      for any Series 2006-2 Interest Period, the interest rate equal to the product
      of
      (a) the percentage equivalent of a fraction, the numerator of which is equal
      to
      the sum of the Monthly Funding Costs with respect to each Purchaser Group for
      such Series 2006-2 Interest Period and the denominator of which is equal to
      the
      average daily Series 2006-2 Invested Amount during such Series 2006-2 Interest
      Period and (b) a fraction, the numerator of which is 360 and the denominator
      of
      which is the number of days in such Series 2006-2 Interest Period; provided,
      however,
      that
      the Series 2006-2 Note Rate will in no event be higher than the maximum rate
      permitted by applicable law.

     

    “Series
      2006-2 Note Termination Date”
means
      the date on which the Series 2006-2 Invested Amount shall have been reduced
      to
      zero and all accrued and unpaid interest on the Series 2006-2 Notes shall have
      been paid in full.

     

    “Series
      2006-2 Prepayment Amount”
means,
      the sum of the following amounts with respect to each Purchaser
      Group:

     

    (a)  the
      Purchaser Group Invested Amount with respect to such Purchaser Group,
plus

     

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

     

    (b)  (i)
      if the
      CP Conduit Purchaser in such Purchaser Group is a Match Funding CP Conduit
      Purchaser, the sum of (A) all accrued and unpaid Discount on all outstanding
      Commercial Paper issued by, or for the benefit of, such Match Funding CP Conduit
      Purchaser to fund the CP Funded Amount with respect to such Match Funding CP
      Conduit Purchaser from the issuance date(s) thereof to but excluding the
      Prepayment Date and (B) the aggregate Discount to accrue on all outstanding
      Commercial Paper issued by, or for the benefit of, such Match Funding CP Conduit
      Purchaser to fund the CP Funded Amount with respect to such Match Funding CP
      Conduit Purchaser from and including the Prepayment Date to and excluding the
      maturity date of each CP Tranche with respect to such Match Funding CP Conduit
      Purchaser or (ii) if the CP Conduit Purchaser in such Purchaser Group is a
      Pooled Funding CP Conduit Purchaser, the sum of (A) the aggregate amount of
      Discount on or in respect of the Commercial Paper issued by, or for the benefit
      of, such Pooled Funding CP Conduit Purchaser allocated, in whole or in part,
      by
      the Funding Agent with respect to such Pooled Funding CP Conduit Purchaser,
      to
      fund the purchase or maintenance of the CP Funded Amount with respect to such
      Pooled Funding CP Conduit Purchaser as of the Prepayment Date and (B) the
      aggregate amount of Discount to accrue on or in respect of the Commercial Paper
      issued by, or for the benefit of, such Pooled Funding CP Conduit Purchaser
      allocated, in whole or in part, by the Funding Agent with respect to such Pooled
      Funding CP Conduit Purchaser, to fund the purchase or maintenance of the CP
      Funded Amount with respect to such Pooled Funding CP Conduit Purchaser from
      and
      including the Prepayment Date to and excluding the maturity dates of such
      Commercial Paper; plus

     

    (c)  all
      accrued and unpaid interest on the APA Bank Funded Amount with respect to such
      Purchaser Group, calculated at the Alternate Base Rate or the applicable
      Adjusted LIBO Rate for the period from and including the immediately preceding
      Period End Date to and excluding the Prepayment Date, plus

     

    (d)  the
      Commitment Fee payable to such Purchaser Group calculated for the period from
      and including the immediately preceding Payment Date to and excluding the
      Prepayment Date, plus

     

    (e)  all
      Article 7 Costs then due and payable to such Purchaser Group, plus

     

    (f)  without
      duplication, any other Program Costs then due and payable to such Purchaser
      Group and any amounts then due and payable to such Purchaser Group pursuant
      to
Section
      2.8.

     

    “Series
      2006-2 Principal Collection Subaccount”
is
      defined in Section
      5A.1(a).

     

    “Series
      2006-2 Principal Payment Amount”
means,
      for any Settlement Date, an amount equal to the product of (a) the average
      daily
      Series 2006-2 Invested Percentage during the immediately
      preceding Monthly Period and (b) the Principal Payment Amount for such
      Settlement Date.

     

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

     

    “Series
      2006-2 Required Asset Amount”
means,
      as of any date of determination, the sum of the Series 2006-2 Invested Amount
      and the Series 2006-2 Required Overcollateralization Amount as of such
      date.

     

    “Series
      2006-2 Required Enhancement Amount”
means,
      on any date of determination, an amount equal to the sum of (a) (i) during
      the
      Series 2006-2 Revolving Period, the Series 2006-2 Required Percentage of the
      sum
      of (x) the Series 2006-2 Maximum Invested Amount on such date and (y) during
      any
      Paydown Period, the aggregate Purchaser Group Invested Amount of any
      Non-Extending Purchaser Groups on such date or (ii) during the Series 2006-2
      Amortization Period, the Series 2006-2 Required Percentage of the sum of (x)
      the
      Series 2006-2 Maximum Invested Amount on the last day of the Series 2006-2
      Revolving Period and (y) if the last day of the Series 2006-2 Revolving Period
      occurred during a Paydown Period, the aggregate Purchaser Group Invested Amount
      of any Non-Extending Purchaser Groups on the last day of the Series 2006-2
      Revolving Period plus (b) the sum of:

     

    (i)  if
      the
      Three-Month Average Residual Value Loss Ratio with respect to the most recent
      Settlement Date exceeded 12.50%, an amount equal to the product of (a) the
      Series 2006-2 Invested Percentage as of the last day of the Monthly Period
      immediately preceding such Settlement Date and (b) 90% of the amount by which
      the Aggregate Residual Value Amount exceeded the Excess Residual Value Amount,
      in each case, as of that date; plus

     

    (ii)  the
      greater of

     

    	(A)  	
            the
              sum of: 

          

     

    (1)
      an
      amount equal to the product of (x) the Series 2006-2 Invested Percentage as
      of
      the last day of the Monthly Period immediately preceding the most recent
      Settlement Date and (y) the Excess Equipment Amount on such Settlement
      Date;

     

    (2)
      an
      amount equal to the product of (x) the Series 2006-2 Invested Percentage as
      of
      the last day of the Monthly Period immediately preceding the most recent
      Settlement Date and (y) the Excess Forklift Amount on such Settlement Date;
      

     

    (3)
      an
      amount equal to the product of (x) the Series 2006-2 Invested Percentage as
      of
      the last day of the Monthly Period immediately preceding the most recent
      Settlement Date and (y) the Excess Truck Amount on such Settlement
      Date;

     

    (4)
      an
      amount equal to the product of (x) the Series 2006-2 Invested Percentage as
      of
      the last day of the Monthly Period immediately preceding the most recent
      Settlement Date and (y) the Excess Trailer Amount on such Settlement Date;
      and

     

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

     

    (5)
      an
      amount equal to the product of (x) the Series 2006-2 Invested Percentage as
      of
      the last day of the Monthly Period immediately preceding the most recent
      Settlement Date and (y) the Excess Truck Body Amount on such Settlement Date;
      or

     

    (B)
      an
      amount equal to the product of (x) the Series 2006-2 Invested Percentage as
      of
      the last day of the Monthly Period immediately preceding such Settlement Date
      and (y) the Excess Alternative Vehicle Amount on such Settlement
      Date

     

    ;
      provided,
      however,
      that,
      after the declaration or occurrence of an Amortization Event, the Series 2006-2
      Required Enhancement Amount shall equal the Series 2006-2 Required Enhancement
      Amount on the date of the declaration or occurrence of such Amortization
      Event.

     

    “Series
      2006-2 Required Investor Noteholders”
means
      Purchaser Groups having Commitment Percentages aggregating 66 2/3% or
      more.

     

    “Series
      2006-2 Required Overcollateralization Amount”
means,
      on any date of determination during an Accrual Period, the amount, if any,
      by
      which the Series 2006-2 Required Enhancement Amount exceeds the sum of (a)
      the
      Series 2006-2 Reserve Account Amount and (b) the amount on deposit in the Series
      2006-2 Principal Collection Subaccount on such date (excluding any amounts
      deposited therein pursuant to Section 5A.2(f) during the Monthly Period
      commencing after the first day of such Accrual Period).

     

    “Series
      2006-2 Required Percentage”
means,
      on any date of determination, the Level 2 Required Enhancement Percentage as
      of
      such date unless:

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    in
      which
      case, the Series 2006-2 Required Percentage on such date will equal the Level
      1
      Required Enhancement Percentage or

     

     

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    in
      which
      case, the Series 2006-2 Required Percentage on such date will equal the Level
      3
      Required Enhancement Percentage.

     

    “Series
      2006-2 Required Reserve Account Amount”
means,
      on any date of determination, an amount equal to the greater (a) the Required
      Reserve Account Amount Percentage as of such date of the Series 2006-2 Invested
      Amount on such date and (b) 1% of the Series 2006-2 Maximum Invested Amount
      (i)
      during the Series 2006-2 Revolving Period, on such date, or (ii) during the
      Series 2006-2 Amortization Period, the last day of the Series 2006-2 Revolving
      Period.

     

    “Series
      2006-2 Required Yield Supplement Amount”
means,
      as of any Settlement Date, the excess, if any, of (a) the Series 2006-2 Yield
      Shortfall Amount for such Settlement Date over (b) 70% of the product of (x)
      the
      Series 2006-2 Invested Percentage on such Settlement Date and (y) the Class
      X
      1999-1B Invested Amount as of such Settlement Date (after giving effect to
      any
      increase thereof on such Settlement Date); provided,
      however
      that
      upon the occurrence of a Receivables Purchase Termination Event, the Series
      2006-2 Required Yield Supplement Amount will equal the Series 2006-2 Yield
      Shortfall Amount.

     

    “Series
      2006-2 Reserve Account”
is
      defined in Section
      5A.9(a).

     

    “Series
      2006-2 Reserve Account Amount”
means,
      on any date of determination, the amount on deposit in the Series 2006-2 Reserve
      Account and available for withdrawal therefrom.

     

    “Series
      2006-2 Reserve Account Surplus”
means,
      on any date of determination, the amount, if any, by which the Series 2006-2
      Reserve Account Amount exceeds the Series 2006-2 Required Reserve Account
      Amount.

     

    “Series
      2006-2 Revolving Period”
means
      the period from and including the Effective Date to but excluding the
      commencement of the Series 2006-2 Amortization Period.

     

     

     

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

     

    “Series
      2006-2 Servicing Fee”
is
      defined in Section
      6.1.

     

    “Series
      2006-2 Servicing Fee Percentage”
is
      defined in Section
      6.1.

     

    “Series
      2006-2 Settlement Collection Subaccount”
is
      defined in Section
      5A.1(a).

     

    “Series
      2006-2 Subaccounts”
is
      defined in Section
      5A.1(a).

     

    “Series
      2006-2 Supplemental Servicing Fee”
is
      defined in Section
      6.1.

     

    “Series
      2006-2 Weighted Average Yield Shortfall”
means,
      for any Settlement Date, the excess, if any, of (a) the Series 2006-2 Minimum
      Yield Rate for such Settlement Date over (b) the Series 2006-2 Weighted Average
      Yield Shortfall Lease Yield for such Settlement Date.

     

    “Series
      2006-2 Weighted Average Yield Shortfall Lease Yield”
means,
      for any Settlement Date, the quotient of (a) the sum of the product with respect
      to each Series 2006-2 Yield Shortfall Lease of (i) the actual or implicit
      finance charge rate applicable to such Series 2006-2 Yield Shortfall Lease
      and
      (ii) the Net Book Value of the Leased Vehicle subject to such Series 2006-2
      Yield Shortfall Lease as of the last day of the immediately preceding Monthly
      Period divided
      by (b)
      the aggregate Net Book Value of the Leased Vehicles subject to all of the Series
      2006-2 Yield Shortfall Leases as of the last day of the immediately preceding
      Monthly Period.

     

    “Series
      2006-2 Weighted Average Yield Shortfall Life”
means,
      for any Settlement Date, 50% of the weighted (on the basis of Net Book Value
      of
      the related Leased Vehicle) average Assumed Lease Term of the Series 2006-2
      Yield Shortfall Leases, assuming that all scheduled lease payments are made
      thereon when scheduled and that the Obligors thereunder do not elect to convert
      such Series 2006-2 Yield Shortfall Leases to Fixed Rate Leases, as of the last
      day of the immediately preceding Monthly Period.

     

    “Series
      2006-2 Yield Shortfall Amount”
means,
      for any Settlement Date, (i) if the Series 2006-2 Hypothetical Yield Shortfall
      Amount for such Settlement Date is less than the product of (x) the Series
      2006-2 Invested Percentage as of the last day of the immediately preceding
      Monthly Period and (y) 70% of the Class X 1999-1B Invested Amount as of such
      Settlement Date (after giving effect to any increase thereof on such Settlement
      Date), an amount equal to the Series 2006-2 Hypothetical Yield Shortfall Amount
      and (ii) otherwise, an amount equal to the product of (x) the Series 2006-2
      Weighted Average Yield Shortfall for such Settlement Date, (y) the aggregate
      Lease Balance of all Series 2006-2 Yield Shortfall Leases as of the last day
      of
      the immediately preceding Monthly Period and (z) the Series 2006-2 Weighted
      Average Yield Shortfall Life for such Settlement Date.

     

    “Series
      2006-2 Yield Shortfall Lease”
means,
      as of any Settlement Date, each Unit Lease that is a Floating Rate Lease with
      an
      actual or implicit finance charge rate of less than the Series 2006-2 Minimum
      Yield Rate as of the last day of the immediately preceding Monthly
      Period.

     

     

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

     

    “Series
      2006-2 Yield Supplement Account”
is
      defined in Section
      5A.10(a).

     

    “Series
      2006-2 Yield Supplement Account Amount”
means,
      on any date of determination, the amount on deposit in the Series 2006-2 Yield
      Supplement Account and available for withdrawal therefrom.

     

    “Series
      2006-2 Yield Supplement Account Surplus”
means,
      on any date of determination, the amount, if any, by which the Series 2006-2
      Yield Supplement Account Amount exceeds the Series 2006-2 Required Yield
      Supplement Amount.

     

    “Series
      2006-2 Yield Supplement Deficiency”
means,
      on any date of determination, the amount by which the Series 2006-2 Required
      Yield Supplement Account Amount is less than the Series 2006-2 Yield Supplement
      Account Amount.

     

    “Statutory
      Reserve Rate”
means
      a
      fraction (expressed as a decimal), the numerator of which is the number one
      and
      the denominator of which is the number one minus
      the
      aggregate of the maximum reserve percentages (including any marginal, special,
      emergency or supplemental reserves) expressed as a decimal (rounded up to the
      nearest 1/100th of 1%) established by the Board with respect to the Adjusted
      LIBO Rate, for eurocurrency funding (currently referred to as “Eurocurrency
      Liabilities” in Regulation D of the Board). Such reserve percentages shall
      include those imposed pursuant to Regulation D. Eurodollar Tranches shall be
      deemed to constitute eurocurrency funding and to be subject to such reserve
      requirements without benefit of or credit for proration, exemptions or offsets
      that may be available from time to time under such Regulation D or comparable
      regulation. The Statutory Reserve Rate shall be adjusted automatically on and
      as
      of the effective date of any change in the reserve percentage. 

     

    “Taxes”
means
      any and all present or future taxes, levies, imposts, duties, deductions,
      charges or withholdings imposed by any Governmental Authority.

     

    “Telerate
      Page 3750”
means
      the display page currently so designated on the Moneyline Telerate Service
      (or
      such other as may replace that page on that service for the purpose of
      displaying rate quotations comparable to those currently provided on such page
      of such service, as determined by the Administrative Agent).

     

    “Total
      Cash Available”
means,
      for any Settlement Date, the excess, if any, of (a) the sum of (i) the aggregate
      amount of Collections allocated to the Series 2006-2 General Collection
      Subaccount pursuant to Section
      5A.2(a)
      during
      the immediately preceding Monthly Period, (ii) an amount equal to the product
      of
      the average daily Series 2006-2 Invested Percentage during such Monthly Period
      and the amount of the Unit Repurchase Payments paid by the Servicer on such
      Settlement Date, (iii) an amount equal to the product of the average daily
      Series 2006-2 Invested Percentage during such Monthly Period and the amount
      of
      the Monthly Servicer Advance made by the Servicer on such Settlement Date,
      (iv)
      an amount equal to the product of the average daily Series 2006-2 Invested
      Percentage during such Monthly Period and the amount withdrawn from the Gain
      on
      Sale Account pursuant to Section 5.2(e) of the Base Indenture on the Transfer
      

     

     

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

     

    Date
      immediately preceding such Settlement Date and (v) the investment income on
      amounts on deposit in the Series 2006-2 Principal Collection Subaccount and
      the
      Series 2006-2 General Collection Subaccount transferred to the Series 2006-2
      Settlement Collection Subaccount on such Settlement Date pursuant to
Section
      5A.1(b)
      over (b)
      the aggregate amount withdrawn from the Series 2006-2 General Collection
      Subaccount and deposited in the Series 2006-2 Principal Collection Subaccount
      pursuant to Section
      5A.2(f)
      during
      the immediately preceding Monthly Period. 

     

    “Tractor”
means
      a
      vehicle designed to pull a Trailer by means of a fifth wheel mounted over its
      rear axel.

     

    “Trailer”
means
      a
      truck trailer supported at the rear by its own wheels and at the front by a
      fifth wheel mounted to a Tractor.

     

    “Transferee”
is
      defined in Section 12.10(f).

     

    “Transfer
      Supplement”
is
      defined in Section 12.10(c).

     

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

     

    “Truck
      Body”
means
      the outer shell of a motor vehicle that is mounted to a cab chassis and that
      covers that chassis from the back of the cab to the end of the body. A Vehicle
      shall not be a Truck Body if it also includes the cab.

     

     

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

     

    ARTICLE
      2  

    PURCHASE
      AND SALE OF SERIES 2006-2 INVESTOR NOTES; 

    INCREASES
      AND DECREASES OF SERIES 2006-2 INVESTED AMOUNT

     

    SECTION
      2.1.   Purchases
      of the Series 2006-2 Investor Notes

     

    (a)  Initial
      Purchases.
      Subject
      to the terms and conditions of this Indenture Supplement, including delivery
      of
      notice in accordance with Section
      2.3,
      (i)
      each CP Conduit Purchaser may, in its sole discretion, purchase a Series 2006-2
      Investor Note in an amount equal to all or a portion of its Commitment
      Percentage of the Series 2006-2 Initial Invested Amount on any Business Day
      during the period from the Effective Date to and including the Expiry Date
      with
      respect to the Purchaser Group of which such CP Conduit Purchaser is a member
      (the “Series
      2006-2 Initial Funding Date”),
      and
      if such CP Conduit Purchaser shall have notified the Administrative Agent and
      the Funding Agent with respect to such CP Conduit Purchaser that it has elected
      not to fund a Series 2006-2 Investor Note in an amount equal to its Commitment
      Percentage of the Series 2006-2 Initial Invested Amount on the Series 2006-2
      Initial Funding Date, each APA Bank with respect to such CP Conduit Purchaser
      shall fund on the Series 2006-2 Initial Funding Date its APA Bank Percentage
      of
      that portion of such Series 2006-2 Investor Note not to be funded by such CP
      Conduit Purchaser and (ii) thereafter, (A) if a CP Conduit Purchaser shall
      have
      purchased a Series 2006-2 Investor Note on the Series 2006-2 Initial Funding
      Date, such CP Conduit Purchaser may, in its sole discretion, maintain its Series
      2006-2 Investor Note, subject to increase or decrease during the period from
      the
      Effective Date to and including the Expiry Date with respect to the Purchaser
      Group of which such CP Conduit Purchaser is a member, in accordance with the
      provisions of this Indenture Supplement and (B) each APA Bank with respect
      to
      such CP Conduit Purchaser shall maintain the Series 2006-2 Investor Note with
      respect to the Purchaser Group of which it is a member, subject to increase
      or
      decrease during the period from the Effective Date to and including the Expiry
      Date with respect to such Purchaser Group, in accordance with the provisions
      of
      this Indenture Supplement. Payments by each CP Conduit Purchaser and/or the
      APA
      Banks with respect to such CP Conduit Purchaser shall be made in immediately
      available funds on the Series 2006-2 Initial Funding Date to the Funding Agent
      with respect to such CP Conduit Purchaser for remittance to the Indenture
      Trustee for deposit into the Series 2006-2 Collection Subaccount.

     

    (b)  Maximum
      Purchaser Group Invested Amounts.
      Notwithstanding anything to the contrary contained in this Indenture Supplement,
      at no time shall the Purchaser Group Invested Amount with respect to any
      Purchaser Group exceed the Maximum Purchaser Group Invested Amount with respect
      to such Purchaser Group at such time.

     

    (c)   Form
      of Series 2006-2 Investor Notes.
      The
      Series 2006-2 Investor Notes shall be issued in fully registered form without
      interest coupons, substantially in the form set forth in Exhibit A
      hereto.

     

    SECTION
      2.2.   Delivery. 

     

     

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

     

    (a)  
      On the
      Series 2006-2 Initial Funding Date, the Issuer shall sign and shall direct
      the
      Indenture Trustee in writing pursuant to Section
      2.4
      of the
      Base Indenture to duly authenticate, and the Indenture Trustee, upon receiving
      such direction, shall so authenticate a Series 2006-2 Investor Note in the
      name
      of the Funding Agent with respect to each Purchaser Group in an amount equal
      to
      the Maximum Purchaser Group Invested Amount with respect to such Purchaser
      Group
      and deliver such Series 2006-2 Investor Note to such Funding Agent in accordance
      with such written directions.

     

    (b)  
      The
      Indenture Trustee shall indicate in the Note Register the actual Purchaser
      Group
      Invested Amount outstanding with respect to each Purchaser Group and the actual
      Series 2006-2 Invested Amount outstanding on any date of determination, which,
      absent manifest error, shall constitute prima facie
      evidence
      of the outstanding Purchaser Group Invested Amounts and outstanding Series
      2006-2 Invested Amount from time to time.

     

    SECTION
      2.3.   Procedure
      for Initial Issuance and for Increasing the Series 2006-2 Invested
      Amount.

     

    (a)  
      Subject
      to Section 2.3(c),
      (i) on the Series 2006-2 Initial Funding Date, each CP Conduit Purchaser
      may agree, in its sole discretion, to purchase, and the APA Banks with respect
      to such CP Conduit Purchaser shall purchase, a Series 2006-2 Investor Note
      in
      accordance with Section
      2.1
      and (ii)
      on any Business Day during the period from the Effective Date to and including
      the Expiry Date with respect to a Purchaser Group, the CP Conduit Purchaser
      in
      such Purchaser Group may agree, in its sole discretion, and the APA Banks in
      such Purchaser Group hereby agree that the Purchaser Group Invested Amount
      with
      respect to such Purchaser Group may be increased by an amount equal to the
      Commitment Percentage of such Purchaser Group of the Increase Amount (an
“Increase”),
      upon
      the request of the Issuer (each date on which an increase in the Series 2006-2
      Invested Amount occurs hereunder being herein referred to as the “Increase
      Date”
      applicable to such Increase); provided,
      however,
      that
      the Issuer shall have given the Administrative Agent (with a copy to the
      Indenture Trustee) irrevocable written notice (effective upon receipt), by
      telecopy (receipt confirmed), substantially in the form of Exhibit B hereto,
      of
      such request no later than 9:30 A.M., New York City time, on the Business Day
      prior to the Series 2006-2 Initial Funding Date or such Increase Date, as the
      case may be; provided,
      further,
      that if
      the proposed amount of any Increase (the “Increase
      Amount”)
      will
      be $200,000,000 or more, the Issuer shall have given the Administrative Agent
      written notice thereof no later than 9:30 A.M., New York City time, on the
      second Business Day prior to the proposed Increase Date. Such notice shall
      state
      (x) the Series 2006-2 Initial Funding Date or the Increase Date, as the case
      may
      be, and (y) the initial invested amount (the “Series
      2006-2 Initial Invested Amount”)
      or the
      proposed Increase Amount, as the case may be.

     

    (b)  
      If a CP
      Conduit Purchaser elects not to fund the full amount of the Commitment
      Percentage of its Purchaser Group of the Series 2006-2 Initial Invested Amount
      or a requested Increase, such CP Conduit Purchaser shall notify the
      Administrative Agent and the Funding Agent with respect to such CP Conduit
      Purchaser, and each APA Bank in such Purchaser Group shall fund its APA Bank
      Percentage of the portion of the Commitment Percentage of such Purchaser Group
      of the Series 2006-2 Initial Invested Amount or such Increase, as the case
      may
      be, not funded by such CP Conduit Purchaser.

     

     

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

     

    (c)  
      No
      Purchaser Group shall be required to make the initial purchase of a Series
      2006-2 Investor Note on the Series 2006-2 Initial Funding Date or to increase
      its Purchaser Group Invested Amount on any Increase Date hereunder
      unless:

     

    (i)  the
      Series 2006-2 Initial Invested Amount or Increase Amount is equal to $10,000,000
      or an integral multiple of $500,000 in excess thereof;

     

    (ii)  after
      giving effect to the initial purchase amount or Increase Amount, the Purchaser
      Group Invested Amount with respect to such Purchaser Group would not exceed
      the
      Maximum Purchaser Group Invested Amount with respect to such
      Purchaser;

     

    (iii)  after
      giving effect to the initial purchase amount or Increase Amount, no Series
      2006-2 Allocated Asset Amount Deficiency, Series 2006-2 Liquid Credit
      Enhancement Deficiency or Series 2006-2 Yield Supplement Deficiency would have
      occurred and be continuing;

     

    (iv)  no
      Amortization Event or Potential Amortization Event shall have occurred and
      be
      continuing; 

     

    (v)  all
      of
      the representations and warranties made by each of the Issuer, SPV, Holdings,
      the Origination Trust and the Servicer in each Transaction Document to which
      it
      is a party are true and correct in all material respects on and as of the Series
      2006-2 Initial Funding Date or such Increase Date, as the case may be, as if
      made on and as of such date (except to the extent such representations and
      warranties are expressly made as of another date); and

     

    (vi)  all
      conditions precedent set forth in Section 11.2 of the Loan Agreement to the
      funding of the Loan, if any, being funded on the Series 2006-2 Initial Funding
      Date or such Increase Date, as the case may be, shall have been
      satisfied.

     

    The
      Issuer’s acceptance of funds in connection with (x) the initial purchase of
      Series 2006-2 Investor Notes on the Series 2006-2 Initial Funding Date and
      (y)
      each Increase occurring on any Increase Date shall constitute a representation
      and warranty by the Issuer to the applicable Purchasers as of the Series 2006-2
      Initial Funding Date or such Increase Date (except to the extent such
      representations and warranties are expressly made as of another date), as the
      case may be, that all of the conditions contained in this Section
      2.3(c)
      have
      been satisfied.

     

    (d)  
      If there
      is a Principal Overpayment Amount for any Settlement Date, the Issuer shall
      request an Increase in accordance with Section
      2.3(a)
      in an
      amount equal to such Principal Overpayment Amount effective on such Settlement
      Date. Notwithstanding the provisions of Section
      2.3(c),
      each
      Purchaser Group shall be required to fund its Commitment Percentage of such
      an
      Increase even if the Issuer is unable to satisfy the conditions set forth in
      clause
      (i),
      (iii),
      (iv)
      or
(vi)
      of
Section
      2.3(c).

     

    (e)  
      Upon
      receipt of any notice required by Section 2.3(a)
      from the
      Issuer, the Administrative Agent shall forward (by telecopy or electronic
      messaging system) a copy of such 

     

     

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

     

    notice
      to
      the Funding Agent with respect to each Purchaser Group, no later than 1:00
      P.M.,
      New York City time, on the day received. After receipt by any Funding Agent
      with
      respect to a Purchaser of such notice from the Administrative Agent, such
      Funding Agent shall, except as otherwise provided in Section
      2.3(d),
      so long
      as the conditions set forth in Sections
      2.3(a)
      and
(c)
      are
      satisfied, promptly provide telephonic notice to the related CP Conduit
      Purchaser and the related APA Banks, of the Increase Date and of such Purchaser
      Group’s Commitment Percentage of the Series 2006-2 Initial Invested Amount or
      the Increase Amount. If such CP Conduit Purchaser elects to fund all or a
      portion of the Commitment Percentage of such Purchaser Group of the Series
      2006-2 Initial Invested Amount or the Increase Amount, as the case may be,
      such
      CP Conduit Purchaser shall pay in immediately available funds such Commitment
      Percentage (or any portion thereof) of the Series 2006-2 Initial Invested Amount
      on the Series 2006-2 Initial Funding Date or the amount of such Increase on
      the
      related Increase Date, as the case may be, to the Funding Agent with respect
      to
      such Purchaser Group for deposit into the Series 2006-2 Collection Subaccount.
      If such CP Conduit Purchaser does not fund the full amount of the Commitment
      Percentage of such Purchaser Group of the Series 2006-2 Initial Invested Amount
      or the Increase Amount, as the case may be, and the related APA Banks are
      required to fund the portion thereof not funded by the CP Conduit Purchaser,
      each such APA Bank shall pay in immediately available funds its APA Bank
      Percentage of such portion on the Series 2006-2 Initial Funding Date or the
      related Increase Date, as the case may be, to the Funding Agent with respect
      to
      such Purchaser Group for deposit in the Series 2006-2 Collection Subaccount.
      

     

    SECTION
      2.4.  Sales
      by CP Conduit Purchasers of Series 2006-2 Investor Notes to APA
      Banks

     

    .
      Notwithstanding any limitation to the contrary contained herein, each CP Conduit
      Purchaser may, in its own discretion, at any time, sell or assign all or any
      portion of its interest in its Series 2006-2 Note to any Conduit Assignee or
      to
      the APA Bank with respect to such CP Conduit Purchaser pursuant to, and subject
      to the terms and conditions of, the Asset Purchase Agreement with respect to
      such CP Conduit Purchaser. 

     

    SECTION
      2.5.  Procedure
      for Decreasing the Series 2006-2 Invested Amount; Optional
      Termination.

     

    (a)  
      On any
      Business Day prior to the occurrence of an Amortization Event, upon the written
      request of the Issuer or the Administrator on behalf of the Issuer, the Series
      2006-2 Invested Amount may be reduced (a “Decrease”)
      by the
      Indenture Trustee’s withdrawing from the Series 2006-2 Principal Collection
      Subaccount, depositing into the Series 2006-2 Distribution Account and
      distributing to the Administrative Agent funds on deposit in the Series 2006-2
      Principal Collection Subaccount on such day in accordance with Section
      5A.7(c)
      in an
      amount not to exceed the amount of such funds on deposit on such day;
provided
      that the
      Administrator shall have given the Administrative Agent (with a copy to the
      Indenture Trustee) irrevocable written notice (effective upon receipt) of the
      amount of such Decrease prior to 9:30 A.M., New York City time, on the second
      Business Day prior to such Decrease, in the case of any such Decrease in an
      amount less than $200,000,000, and prior to 9:30 A.M., New York City time,
      on a
      Business Day that is at least ten days prior to such Decrease, in the case
      of
      any such Decrease in an amount of $200,000,000 or more; provided,
      further,
      that
      any such Decrease shall be in an amount equal to $10,000,000 and integral
      multiples of $500,000 in excess thereof. Upon each Decrease, the Indenture
      Trustee shall indicate in the Note Register such Decrease. Upon receipt of
      any
      notice required by Section 2.5(a)
      from the
      Issuer, the Administrative Agent 

     

     

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

     

    shall
      forward (by telecopy or electronic messaging system) a copy of such notice
      to
      the Funding Agent with respect to each Purchaser Group, no later than 1:00
      P.M.,
      New York City time, on the day received.

     

    (i)  
      On any
      Business Day, the Issuer shall have the right to deliver an irrevocable written
      notice (an “Optional
      Termination Notice”)
      to the
      Administrative Agent, the Indenture Trustee, the Administrator and the Rating
      Agencies in which the Issuer declares that the Commitments shall terminate
      on
      the date (the “Optional
      Termination Date”)
      set
      forth in such notice (which date, in any event, shall be a Payment Date not
      less
      than twenty Business Days from the date on which such notice is delivered).
      Upon
      receipt of any Optional Termination Notice from the Issuer, the Administrative
      Agent shall promptly notify the Funding Agent with respect to each Purchaser
      Group thereof.

     

    (ii)  
      From and
      after the Optional Termination Date, the Series 2006-2 Amortization Period
      shall
      commence for all purposes under this Indenture Supplement and the other
      Transaction Documents. 

     

    (b)  
      If there
      are funds on deposit in the Series 2006-2 Principal Collection Subaccount on
      any
      Business Day on which the Purchaser Group Invested Amount with respect to any
      Non-Extending Purchaser Group shall not have been reduced to zero and the Issuer
      would be permitted under the terms of Section
      2.5(a)
      to
      effect a Decrease with such funds, the Issuer shall request such a Decrease
      in
      accordance with Section
      2.5(a)
      on the
      earliest possible date.

     

    SECTION
      2.6.  Increases
      and Reductions of the Commitments; Extensions of the
      Commitments

     

    (a)  
      The
      Issuer may from time to time request that any Purchaser Group agree to increase
      its Maximum Purchaser Group Invested Amount. An increase in any Maximum
      Purchaser Group Invested Amount shall be effective hereunder if such Purchaser
      Group shall have agreed to such increase in its Maximum Purchaser Group Invested
      Amount. 

     

    (b)  
      If the
      Issuer desires to extend the Scheduled Expiry Date with respect to the Purchaser
      Groups, the Issuer shall notify the Administrative Agent at least 60 days prior
      to such Scheduled Expiry Date of its desire to extend the Scheduled Expiry
      Date
      with respect to the Purchaser Groups, whereupon the Administrative Agent shall
      notify the Funding Agent with respect to each Purchaser Group of the Issuer’s
      desire to so extend the Scheduled Expiry Date. Each Funding Agent, on behalf
      of
      its Purchaser Group, shall notify the Administrative Agent and the Issuer in
      writing of whether such Purchaser Group agrees to an extension of the Scheduled
      Expiry Date with respect to such Purchaser Group; provided
      that
      failure by a Funding Agent to respond to such request shall not be construed
      as
      a consent by such Purchaser Group to such extension. The decision to extend
      or
      not extend shall be made by each Purchaser Group in its sole discretion. In
      the
      event that any Purchaser Group desires to extend its Scheduled Expiry Date
      for
      an amount that is less than its Maximum Purchaser Group Invested Amount prior
      to
      the Issuer’s request for an extension, the Issuer, in its sole discretion, may
      accept such extension; provided,
      however,
      that
      such Purchaser Group (x) shall be deemed to be a Non-Extending Purchaser
      Group for purposes of Section
      5A.7(c)
      having a
      Purchaser Group Invested Amount 

     

     

    
      
         

      

      
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    equal
      to
      the excess of its Purchaser Group Invested Amount over the Maximum Purchaser
      Group Invested Amount that will be available after the extension of its
      Scheduled Expiry Date and (y) shall be deemed to be an Extending
      Purchaser Group with a Maximum Purchaser Group Invested Amount equal to the
      portion of its Maximum Purchaser Group Invested Amount that will be available
      after the extension of its Scheduled Expiry Date. 

     

    (c)  
      On any
      Business Day during the Series 2006-2 Revolving Period, the Issuer may, upon
      two
      (2) Business Days’ prior written notice to the Administrative Agent (effective
      upon receipt) (with copies to the Administrator and the Indenture Trustee)
      reduce the Series 2006-2 Maximum Invested Amount in an amount equal to
      $10,000,000 or a whole multiple of $1,000,000 in excess thereof; provided
      that no
      such termination or reduction shall be permitted if, after giving effect thereto
      and to any reduction in the Series 2006-2 Invested Amount on such date, the
      Purchaser Group Invested Amount with respect to any Purchaser Group would exceed
      the Maximum Purchaser Group Invested Amount with respect to such Purchaser
      Group
      then in effect. Any reduction in the Series 2006-2 Maximum Invested Amount
      shall
      be made on a pro
      rata
      basis to
      the Maximum Purchaser Group Invested Amounts with respect to the Purchaser
      Groups, based on the Maximum Purchaser Group Invested Amount with respect to
      each Purchaser Group. 

     

    SECTION
      2.7.  Interest;
      Fees.

     

    (a)  
      Interest
      shall be payable on the Series 2006-2 Investor Notes on each Payment Date
      pursuant to Section 5A.5(a).

     

    (b)  
      On any
      Business Day, the Issuer may, subject to Section
      2.7(c),
      elect
      to allocate all or any portion of the Available CP Funding Amount with respect
      to any Match Funding CP Conduit Purchaser, to one or more CP Tranches with
      CP
      Rate Periods commencing on such Business Day by giving the Administrative Agent
      and the Funding Agent with respect to such Match Funding CP Conduit Purchaser
      irrevocable written or telephonic (confirmed in writing) notice thereof, which
      notice must be received by such Funding Agent prior to 11:00 A.M., New York
      City
      time, one Business Day prior to such Business Day. Such notice shall specify
      (i)
      the applicable Business Day, (ii) the CP Rate Period for each CP Tranche to
      which a portion of the Available CP Funding Amount with respect to the Purchaser
      Group of which such Match Funding CP Conduit Purchaser is a member is to be
      allocated and (iii) the portion of such Available CP Funding Amount being
      allocated to each such CP Tranche. On any Business Day, the Issuer may, subject
      to Section
      2.7(c),
      elect
      to allocate all or any portion of the Available APA Bank Funding Amount with
      respect to any Purchaser Group to one or more Eurodollar Tranches with
      Eurodollar Periods commencing on such Business Day by giving the Administrative
      Agent and the Funding Agent with respect to such Purchaser Group irrevocable
      written or telephonic (confirmed in writing) notice thereof, which notice must
      be received by such Funding Agent prior to 1:00 P.M., New York City time, three
      Business Days prior to such Business Day. Such notice shall specify (i) the
      applicable Business Day, (ii) the Eurodollar Period for each Eurodollar Tranche
      to which a portion of the Available APA Bank Funding Amount with respect to
      such
      Purchaser Group is to be allocated and (iii) the portion of such Available
      APA
      Bank Funding Amount being allocated to each such Eurodollar Tranche. Upon
      receipt of any such notice, the Funding Agent with respect to a Purchaser Group
      shall notify the CP Conduit

     

     

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

     

    Purchaser
      and the APA Banks in such Purchaser Group of the contents of such notice
      promptly upon receipt thereof. 

     

    (c)  
      Notwithstanding anything to the contrary contained in this Section
      2.7,
      (i) (A)
      each Match Funding CP Conduit Purchaser shall approve the length of each CP
      Rate
      Period and the portion of the Available CP Funding Amount with respect to such
      Match Funding CP Conduit Purchaser allocated to such CP Rate Period, (B) such
      Match Funding CP Conduit Purchaser may select, in its sole discretion, any
      new
      CP Rate Period if (x) the Issuer does not provide notice of a new CP Rate Period
      on a timely basis or (y) the Funding Agent with respect to such Match Funding
      CP
      Conduit Purchaser, on behalf of such Match Funding CP Conduit Purchaser,
      determines, in its sole discretion, that the CP Rate Period requested by the
      Issuer is unavailable or for any reason commercially undesirable and (C) the
      portion of the Available CP Funding Amount with respect to such Match Funding
      CP
      Conduit Purchaser allocable to each CP Tranche must be in an amount equal to
      $1,000,000 or an integral multiple of $100,000 in excess thereof and (ii) (A)
      the portion of the Available APA Bank Funding Amount with respect to any
      Purchaser Group allocable to each Eurodollar Tranche must be in an amount equal
      to $100,000 or an integral multiple of $100,000 in excess thereof, (B) no more
      than 10 Eurodollar Tranches with respect to such Purchaser Group shall be
      outstanding at any one time, (C) after the occurrence and during the continuance
      of any Amortization Event or Potential Amortization Event, the Issuer may not
      elect to allocate any portion of the Available APA Bank Funding Amount with
      respect to any Purchaser Group to a Eurodollar Tranche and (D) during the Series
      2006-2 Amortization Period, the Issuer may not select any Eurodollar Period
      that
      does not end on or prior to the next succeeding Payment Date.

     

    (d)  On
      any
      Business Day, a Match Funding CP Conduit Purchaser may elect that the Issuer
      no
      longer be permitted to select CP Tranches in accordance with Sections
      2.7(b)
      and
(c)
      in
      respect of the CP Conduit Funded Amount with respect to such CP Conduit
      Purchaser by giving the Issuer and the Administrative Agent irrevocable written
      notice thereof, which notice must be received by the Issuer and the
      Administrative Agent at least one Business Day prior to such Business Day.
      On
      any Business Day, a Pooled Funding CP Conduit Purchaser may elect thereafter
      to
      allow the Issuer to select CP Tranches in accordance with Sections
      2.7(b)
      and
(c)
      in
      respect of the CP Conduit Funded Amount with respect to such CP Conduit
      Purchaser by giving the Issuer and the Administrative Agent irrevocable written
      notice thereof, which notice must be received by the Issuer and the
      Administrative Agent at least one Business Day prior to such Business Day.
      Any
      CP Conduit Purchaser making an election to change the manner in which its
      funding costs in respect of its Series 2006-2 Investor Note are allocated in
      accordance with this Section
      2.7(d)
      will be
      both a Match Funding CP Conduit Purchaser and a Pooled Funding CP Conduit
      Purchaser during the period that its Series 2006-2 Investor Note is funded
      on
      both a “pooled” and “match funded” basis and its Monthly Funding Costs during
      that period will be calculated accordingly.

     

    (e)  The
      Indenture Trustee (acting at the written direction of the Administrator upon
      which the Indenture Trustee may conclusively rely) shall distribute pursuant
      to
Section
      5A.5(b),
      from
      amounts deposited in the Series 2006-2 Distribution Account pursuant to
Section
      5A.4(c),
      to the
      Administrative Agent, for the account of each Purchaser Group, on each Payment
      Date, a commitment fee with respect to the Series 2006-2 Interest Period ending
      on such Payment Date (the “Commitment
      Fee”)
      during
      the period from the Effective Date to and 

     

     

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

     

    including
      the Expiry Date with respect to such Purchaser Group at the Commitment Fee
      Rate
      of 102% of the average daily Maximum Purchaser Group Invested Amount with
      respect to such Purchaser Group during such Series 2006-2 Interest Period less
      the average daily Purchaser Group Invested Amount with respect to such Purchaser
      Group during such Series 2006-2 Interest Period. The Commitment Fee shall be
      payable monthly in arrears on each Payment Date. 

     

    (f)  Calculations
      of per annum rates under this Indenture Supplement shall be made on the basis
      of
      a 360- (or 365-/366-, in the case of interest on the Floating Tranche based
      on
      the Prime Rate) day year. Calculations of Commitment Fees shall be made on
      the
      basis of a 360-day year. Each determination of the Adjusted LIBO Rate by the
      Administrative Agent shall be conclusive and binding upon each of the parties
      hereto in the absence of manifest error.

     

    SECTION
      2.8.  Indemnification
      by the Issuer and the Administrator 

     

    (a)  The
      Issuer agrees to indemnify and hold harmless the Indenture Trustee, the
      Administrative Agent, each Funding Agent, each Purchaser and each of their
      respective officers, directors, agents and employees (each, a “Company
      indemnified person”)
      from
      and against any loss, liability, expense, damage or injury suffered or sustained
      by (a “Claim”)
      such
      Company indemnified person by reason of (i) any acts, omissions or alleged
      acts
      or omissions arising out of, or relating to, activities of the Issuer pursuant
      to the Indenture or the other Transaction Documents to which it is a party,
      (ii)
      a breach of any representation or warranty made or deemed made by the Issuer
      (or
      any of its officers) in the Indenture or other Transaction Document or (iii)
      a
      failure by the Issuer to comply with any applicable law or regulation or to
      perform its covenants, agreements, duties or obligations required to be
      performed or observed by it in accordance with the provisions of the Indenture
      or the other Transaction Documents, including, but not limited to, any judgment,
      award, settlement, reasonable attorneys’ fees and other reasonable costs or
      expenses incurred in connection with the defense of any actual or threatened
      action, proceeding or claim, except to the extent such loss, liability, expense,
      damage or injury (A) resulted from the gross negligence, bad faith or wilful
      misconduct of such Company indemnified person or its officers, directors,
      agents, principals, employees or employers, (B) resulted solely from a
      default by an Obligor with respect to any Sold Unit or Fleet Receivable or
      (C)
      includes any Excluded Taxes; provided
      that any
      payments made by the Issuer pursuant to this Section
      2.8
      shall be
      made solely from funds available therefor pursuant to Section
      5A.5(e),
      shall
      be non-recourse other than with respect to such funds, and shall not constitute
      a claim against the Issuer to the extent that such funds are insufficient to
      make such payment.

     

    (b)  The
      Administrator agrees to indemnify and hold harmless the Indenture Trustee,
      the
      Administrative Agent, each Funding Agent, each Purchaser and each of their
      respective officers, directors, agents and employees (each, a “Administrator
      indemnified person”)
      from
      and against any Claim by reason of (i) any acts, omissions or alleged acts
      or
      omissions arising out of, or relating to, activities of the Administrator
      pursuant to the Indenture or the other 

     

     

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

     

    Transaction
      Documents to which it is a party, (ii) a breach of any representation or
      warranty made or deemed made by the Administrator (or any of its officers)
      in
      the Indenture or other Transaction Document or (iii) a failure by the
      Administrator to comply with any applicable law or regulation or to perform
      its
      covenants, agreements, duties or obligations required to be performed or
      observed by it in accordance with the provisions of the Indenture or the other
      Transaction Documents, including, but not limited to, any judgment, award,
      settlement, reasonable attorneys’ fees and other reasonable costs or expenses
      incurred in connection with the defense of any actual or threatened action,
      proceeding or claim, except to the extent such loss, liability, expense, damage
      or injury (A) resulted from the gross negligence, bad faith or wilful misconduct
      of such Administrator indemnified person or its officers, directors, agents,
      principals, employees or employers, (B) resulted solely from a default by
      an Obligor with respect to any Sold Unit or Fleet Receivable or (C) include
      any
      Excluded Taxes.

     

    SECTION
      2.9.  Funding
      Agents

     

    (a)  The
      Funding Agent with respect to each Purchaser Group is hereby authorized to
      record on each Business Day the CP Funded Amount with respect to such Purchaser
      Group and the aggregate amount of Discount accruing with respect thereto on
      such
      Business Day and the APA Bank Funded Amount with respect to such Purchaser
      Group
      and the amount of interest accruing with respect thereto on such Business Day
      and, based on such recordations, to determine the Monthly Funding Costs with
      respect to each Series 2006-2 Interest Period and such Purchaser Group. Any
      such
      recordation by a Funding Agent, absent manifest error, shall constitute
prima facie
      evidence
      of the accuracy of the information so recorded. Furthermore, the Funding Agent
      with respect to each Purchaser Group will maintain records sufficient to
      identify the percentage interest of the related CP Conduit Purchaser and each
      APA Bank with respect to such Purchaser Group holding an interest in the Series
      2006-2 Investor Note registered in the name of such Funding Agent and any
      amounts owing thereunder.

     

    (b)  Upon
      receipt of funds from the Administrative Agent on each Payment Date and the
      date
      of any Decrease, each Funding Agent shall pay such funds to the related CP
      Conduit Purchaser and/or the related APA Banks owed such funds in accordance
      with the recordations maintained by it in accordance with Section
      2.9(a)
      and the
      Asset Purchase Agreement with respect to such CP Conduit Purchaser. If a Funding
      Agent shall have paid to any CP Conduit Purchaser or APA Bank any funds that
      (i)
      must be returned for any reason (including bankruptcy) or (ii) exceeds that
      which such CP Conduit Purchaser or APA Bank was entitled to receive, such amount
      shall be promptly repaid to such Funding Agent by such CP Conduit Purchaser
      or
      APA Bank.

     

    ARTICLE
      3  

     

    ARTICLE
      5 OF THE BASE INDENTURE

     

    Sections
      5.1
      through
5.4
      of the
      Base Indenture and each other Section of Article 5 of the Indenture relating
      to
      another Series shall read in their entirety as provided in the Base Indenture
      or
      any applicable Indenture Supplement. Article
      5
      of the
      Base Indenture (except for Sections
      5.1
      through
5.4
      thereof
      and any portion thereof relating to another Series) shall read in its entirety
      as follows and shall be exclusively applicable to the Series 2006-2 Investor
      Notes:

     

    Section
      5A.1 Establishment
      of Series 2006-2 Subaccounts.

     

     

     

    
      
         

      

      
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    (a)  The
      Indenture Trustee shall establish and maintain in the name of the Indenture
      Trustee for the benefit of the Series 2006-2 Investor Noteholders (i) a
      subaccount of the Collection Account (the “Series
      2006-2 Collection Subaccount”);
      and
      (ii) three subaccounts of the Series 2006-2 Collection Subaccount: (1) the
      Series 2006-2 General Collection Subaccount, (2) the Series 2006-2 Principal
      Collection Subaccount and (3) the Series 2006-2 Settlement Collection Subaccount
      (respectively, the “Series
      2006-2 General Collection Subaccount,”
the
      “Series
      2006-2 Principal Collection Subaccount”
and
      the
“Series
      2006-2 Settlement Collection Subaccount”);
      the
      accounts established pursuant to this Section 5A.1(a), collectively, the
“Series
      2006-2 Subaccounts”),
      each
      Series 2006-2 Subaccount to bear a designation indicating that the funds
      deposited therein are held for the benefit of the Series 2006-2 Investor
      Noteholders. The Indenture Trustee shall possess all right, title and interest
      in all moneys, instruments, securities and other property on deposit from time
      to time in the Series 2006-2 Subaccounts and the proceeds thereof for the
      benefit of the Series 2006-2 Investor Noteholders. 

     

    (b)  So
      long
      as no Amortization Event has occurred, the Issuer shall instruct the institution
      maintaining the Collection Account in writing to invest funds on deposit in
      the
      Series 2006-2 Subaccounts at all times in Permitted Investments selected by
      the
      Issuer (by standing instructions or otherwise); provided,
      however,
      that
      funds on deposit in a Series 2006-2 Subaccounts may be invested together with
      funds held in other subaccounts of the Collection Account. Amounts on deposit
      and available for investment in the Series 2006-2 General Collection Subaccount
      and the Series 2006-2 Principal Collection Subaccount shall be invested by
      the
      Indenture Trustee at the written direction of the Issuer, so long as no
      Amortization Event has occurred, in Permitted Investments that mature, or that
      are payable or redeemable upon demand of the holder thereof, on or prior to
      the
      next Business Day. On each Settlement Date, all interest and other investment
      earnings (net of losses and investment expenses) on funds deposited in the
      Series 2006-2 Principal Collection Subaccount and the Series 2006-2 General
      Collection Subaccount shall be deposited in the Series 2006-2 Settlement
      Collection Subaccount. The Issuer shall not direct the Indenture Trustee to
      dispose of (or permit the disposal of) any Permitted Investments prior to the
      maturity thereof to the extent such disposal would result in a loss of principal
      of such Permitted Investment. In the absence of written direction as provided
      hereunder, all funds on deposit in the Collection Account shall remain
      uninvested.

     

    (c)  After
      the
      occurrence of an Amortization Event, the Administrative Agent shall instruct
      the
      institution maintaining the Collection Account in writing to invest funds on
      deposit in the Series 2006-2 Subaccounts from time to time in Permitted
      Investments selected by the Administrative Agent (by standing instructions
      or
      otherwise). Amounts on deposit and available for investment in the Series 2006-2
      Subaccounts shall be invested by the Indenture Trustee at the written direction
      of the Administrative Agent in Permitted Investments that mature, or that are
      payable or redeemable upon demand of the holder thereof on or prior to the
      Business Day immediately preceding the next Payment Date. On each Settlement
      Date, all interest and other investment earnings (net of losses and investment
      expenses) on funds deposited in the Series 2006-2 General Collection Subaccount
      and the Series 2006-2 Principal Collection Subaccount shall be deposited in
      the
      Series 2006-2 Settlement Collection Subaccount. The Administrative Agent shall
      not direct the Indenture Trustee to dispose of (or permit the disposal of)
      any
      Permitted Investments prior to the maturity thereof to the extent such disposal
      

     

     

    
      
         

      

      
        36

        
          

        

      

      
         

      

    

     

    would
      result in a loss of principal of such Permitted Investment. In the absence
      of
      written direction as provided hereunder, all funds on deposit shall remain
      uninvested.

     

    Section
      5A.2 Allocations
      with Respect to the Series 2006-2 Investor Notes.

     

    (a)  Prior
      to
      1:00 P.M., New York City time, on each Deposit Date, the Administrator shall
      direct the Indenture Trustee in writing to allocate to the Series 2006-2
      Investor Noteholders and deposit in the Series 2006-2 General Collection
      Subaccount an amount equal to the product of the Series 2006-2 Invested
      Percentage on such Deposit Date and the Collections deposited into the
      Collection Account on such Deposit Date.

     

    (b)  The
      Administrator shall direct the Indenture Trustee in writing to allocate to
      the
      Series 2006-2 Investor Noteholders and deposit in the Series 2006-2 General
      Collection Subaccount the following amounts on each Business Day (the
“Series
      2006-2 Daily Principal Allocation”):

     

    (i)  the
      proceeds from the initial sale of the Series 2006-2 Investor Notes or any
      Increase; and

     

    (ii)  any
      amounts allocated to another Series of Investor Notes that the Issuer or the
      Administrator, on behalf of the Issuer, has elected to apply to reduce the
      Series 2006-2 Invested Amount.

     

    (c)  On
      each
      Determination Date, the Administrator shall direct the Indenture Trustee in
      writing to allocate to the Series 2006-2 Investor Noteholders and deposit in
      the
      Series 2006-2 Settlement Collection Subaccount on the immediately succeeding
      Transfer Date amounts withdrawn from the Gain on Sale Account, in an amount
      equal to the product of the average daily Series 2006-2 Invested Percentage
      during the immediately preceding Monthly Period and the amount withdrawn from
      the Gain on Sale Account pursuant to Section
      5.2(e)
      of the
      Base Indenture on such Transfer Date.

     

    (d)  On
      each
      Determination Date, the Administrator shall direct the Indenture Trustee in
      writing to allocate to the Series 2006-2 Investor Noteholders and deposit in
      the
      Series 2006-2 Settlement Collection Subaccount on the immediately succeeding
      Settlement Date the following amounts:

     

    (i)  any
      Unit
      Repurchase Payments made by the Servicer, in an amount equal to the product
      of
      the average daily Series 2006-2 Invested Percentage during the immediately
      preceding Monthly Period and the amount of such Unit Repurchase Payments;

     

    (ii)  the
      Monthly Servicer Advance made by the Servicer, in an amount equal to the product
      of the average daily Series 2006-2 Invested Percentage during the immediately
      preceding Monthly Period and the amount of such Monthly Servicer Advance; and
      

     

    (iii)  payments
      made under the Lease Rate Caps maintained by the Issuer pursuant to Section
      5A.12,
      in an
      amount equal to the product of the 

     

     

    
      
         

      

      
        37

        
          

        

      

      
         

      

    

     

    average
      daily Series 2006-2 Invested Percentage during the immediately preceding Monthly
      Period and the amount of such payments.

     

    (e)  On
      each
      Business Day, the Administrator will direct the Indenture Trustee in writing
      to
      allocate, prior to 1:00 P.M., New York City time, the Series 2006-2 Daily
      Principal Allocation deposited in the Series 2006-2 Collection Subaccount in
      the
      following priority:

     

    (i)  if
      such
      Business Day is a Settlement Date, allocate to the Series 2006-2 Settlement
      Collection Subaccount, an amount equal to the lesser of (A) the proceeds from
      any Increase on such Settlement Date and (B) the Principal Overpayment Amount
      for such Settlement Date; and

     

    (ii)  allocate
      any remaining portion of any Increase and any amounts allocated to another
      Series of Investor Notes that the Issuer or the Administrator, on behalf of
      the
      Issuer, has elected to apply to reduce the Series 2006-2 Invested Amount to
      the
      Series 2006-2 Principal Collection Subaccount.

     

    (f)  If,
      on
      any Business Day during the Series 2006-2 Revolving Period, other than during
      any Paydown Period, the sum of (i) the Series 2006-2 Daily Principal Allocation
      and (ii) the amount on deposit in the Series 2006-2 Principal Collection
      Subaccount on such Business Day is less than the Daily Principal Utilization
      Amount for such Business Day, the Administrator will direct the Indenture
      Trustee in writing, prior to 1:00 P.M., New York City time, to withdraw an
      amount equal to such deficit from the Series 2006-2 General Collection
      Subaccount and deposit it into the Series 2006-2 Principal Collection
      Subaccount.

     

    (g)  The
      Administrator may direct the Indenture Trustee in writing by 1:00 P.M., New
      York
      City time, on any Business Day during the Series 2006-2 Revolving Period to
      withdraw amounts on deposit in the Series 2006-2 Principal Collection Subaccount
      for any of the following purposes:

     

    (i)  if
      such
      Business Day is a Borrowing Date, to fund all or a portion of the Loan being
      made to Holdings on such Borrowing Date pursuant to the Loan
      Agreement;

     

    (ii)  if
      the
      Administrator shall have given the Administrative Agent written notice of a
      Decrease in accordance with Section
      2.5(a),
      to
      reduce the Series 2006-2 Invested Amount in accordance with Section
      2.5;
      or

     

    (iii)  to
      reduce
      the Invested Amount of any other Series of Investor Notes;

     

    provided,
      however
      that
      during any Paydown Period the Administrator may withdraw amounts on deposit
      in
      the Series 2006-2 Principal Collection Subaccount pursuant to this Section
      5A.2(g)
      only to
      reduce the Purchaser Group Invested Amounts of the Non-Extending Purchaser
      Group
      or Non-Extending Purchaser Groups pursuant to Sections
      2.5(a)
      and
5A.7(c).

     

    (h)  On
      any
      Business Day during the Series 2006-2 Amortization Period prior to the
      occurrence of an Amortization Event, the Administrator may direct the Indenture
      Trustee 

     

     

    
      
         

      

      
        38

        
          

        

      

      
         

      

    

     

    in
      writing to withdraw amounts on deposit in the Series 2006-2 Principal Collection
      Subaccount and apply them to reduce the Series 2006-2 Invested Amount in
      accordance with Section
      2.5; provided,
      that
      the Administrator shall have given the Administrative Agent written notice
      of
      such Decrease in accordance with Section
      2.5(a).

     

    Section
      5A.3.
      Determination
      of Interest

    (a)  On
      each
      Determination Date, the Administrator shall determine the Series 2006-2 Note
      Rate for the Series 2006-2 Interest Rate Period ending on the next succeeding
      Payment Date, based on the information provided by the Funding Agents pursuant
      to this Section
      5A.3(a),
      and the
      amount of interest payable on such next succeeding Payment Date on the Series
      2006-2 Investor Notes (“Series
      2006-2 Monthly Interest”).
      Series 2006-2 Monthly Interest for each Series 2006-2 Interest Period will
      equal
      the product of (i) the Series 2006-2 Note Rate for such Series 2006-2 Interest
      Period, (ii) the average daily Series 2006-2 Invested Amount during such Series
      2006-2 Interest Period and (iii) the actual number of days elapsed in such
      Series 2006-2 Interest Period divided
      by 360.
      On each Determination Date, the Funding Agent with respect to each Purchaser
      Group shall provide written notice to the Administrator of the Monthly Funding
      Costs with respect to such Purchaser Group with respect to the portion of the
      current Series 2006-2 Interest Period ending on such Determination Date (or,
      in
      the case of the Series 2006-2 Interest Period immediately preceding the Series
      2006-2 Note Termination Date, an estimate of the Monthly Funding Costs with
      respect to such Purchaser Group for such Series 2006-2 Interest Period). For
      the
      purposes of determining Series 2006-2 Monthly Interest for each Series 2006-2
      Interest Period (other than the Series 2006-2 Interest Period immediately
      preceding the Series 2006-2 Note Termination Date), the Administrator may make
      a
      reasonable estimation of the portion of the Monthly Funding Costs with respect
      to each Purchaser Group to accrue during the portion of such Series 2006-2
      Interest Period succeeding such Determination Date, based on its reasonable
      expectations of the Purchaser Group Invested Amount with respect to such
      Purchaser Group during such period, the Discount on the Commercial Paper issued
      by, or for the benefit of, such Purchaser Group to fund such Purchaser Group
      Invested Amount during such period or the Adjusted LIBO Rates or the Alternate
      Base Rate applicable to such Purchaser Group Invested Amount during such period.
      If the actual amount of the portion of the Monthly Funding Costs with respect
      to
      any Purchaser Group accruing during the portion of any Series 2006-2 Interest
      Period succeeding the Determination Date in such Series 2006-2 Interest Period
      is less than or greater than the amount thereof estimated by the Administrator
      on such Determination Date, the Administrator will reduce or increase the
      Monthly Funding Costs with respect to such Purchaser Group with respect to
      the
      next succeeding Series 2006-2 Interest Period accordingly. The Administrator
      shall determine Series 2006-2 Monthly Interest for the Series 2006-2 Interest
      Period immediately preceding the Series 2006-2 Note Termination Date on the
      Determination Date immediately preceding the last day of such Series 2006-2
      Interest Period based on the information provided by the Funding Agents. If
      a
      Funding Agent with respect to any Purchaser Group determines that the actual
      Monthly Funding Costs with respect to such Purchaser Group for the Series 2006-2
      Interest Period immediately preceding the Series 2006-2 Note Termination Date
      will be more or less than the estimate thereof provided to the Administrator
      and
      informs the Administrator of such variance prior to the Payment Date for such
      Series 2006-2 Interest Period, the Administrator will amend the Monthly
      Settlement Statement relating thereto to reflect that variance and provide
      the
      Indenture Trustee, the Administrative

     

     

    
      
         

      

      
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    Agent
      and
      each Funding Agent with an amended Monthly Settlement Statement on or prior
      to
      such Payment Date.

     

    (b)  On
      each
      Determination Date, the Administrator shall determine the excess, if any (the
      “Interest
      Shortfall”),
      of
      (i) the sum of (x) the Series 2006-2 Monthly Interest for the Series 2006-2
      Interest Period ending on the next succeeding Payment Date and (y) the amount
      of
      any unpaid Interest Shortfall, as of the preceding Payment Date (together with
      any Additional Interest on such Interest Shortfall) over
      (ii) the
      amount which will be available to be distributed to the Series 2006-2 Investor
      Noteholders on such Payment Date in respect thereof pursuant to this Indenture
      Supplement. If the Interest Shortfall with respect to any Payment Date is
      greater than zero, an additional amount (“Additional
      Interest”)
      equal
      to the product of (A) the number of days until such Interest Shortfall shall
      be
      repaid divided by
      365 (or
      366, as the case may be), (B) the Alternate Base Rate plus
      2.0% and
      (C) such Interest Shortfall (or the portion thereof which has not been paid
      to
      the Series 2006-2 Investor Noteholders) shall be payable as provided herein
      on
      each Payment Date following such Payment Date, to but excluding the Payment
      Date
      on which such Interest Shortfall is paid to the Series 2006-2 Investor
      Noteholders.

     

    Section
      5A.4.
      Monthly
      Application of Collections.

    (a)  On
      each
      Settlement Date, the Administrator shall direct the Indenture Trustee in writing
      to withdraw from the Series 2006-2 General Collection Subaccount and allocate
      to
      the Series 2006-2 Settlement Collection Subaccount an amount equal to Total
      Cash
      Available for such Settlement Date (less an amount equal to the investment
      income from the Series 2006-2 General Collection Subaccount and the Series
      2006-2 Principal Collection Subaccount transferred to the Series 2006-2
      Settlement Collection Subaccount pursuant to Section
      5A.1(b)).

     

    (b)  If
      the
      Administrator determines that the aggregate amount distributable from the Series
      2006-2 Settlement Collection Subaccount pursuant to paragraphs
      (i)
      through
(x)
      of
Section
      5A.4(c)
      on any
      Payment Date exceeds the sum of the Total Cash Available for such Payment Date
      and the amount to be deposited in the Series 2006-2 Settlement Collection
      Subaccount pursuant to Section
      5A.2(e)(i)
      on such
      Payment Date (the “Deficiency”),
      the
      Administrator shall notify the Indenture Trustee thereof in writing at or before
      10:00 A.M., New York City time, on the Business Day immediately preceding such
      Payment Date, and the Indenture Trustee shall, by 11:00 A.M., New York City
      time, on such Payment Date, withdraw from the Series 2006-2 Reserve Account
      and
      deposit in the Series 2006-2 Settlement Collection Subaccount an amount equal
      to
      the least of (x) such Deficiency, (y) the product of the average daily Series
      2006-2 Invested Percentage during the immediately preceding Monthly Period
      and
      Aggregate Net Lease Losses for such Monthly Period and (z) the Series 2006-2
      Reserve Account Amount and, to the extent that such amount is less than the
      Deficiency, withdraw from the Series 2006-2 Yield Supplement Account and deposit
      in the Series 2006-2 Settlement Collection Subaccount an amount equal to the
      lesser of the amount of such insufficiency and the Series 2006-2 Yield
      Supplement Account Amount. If the Deficiency with respect to any Payment Date
      exceeds the amounts to be withdrawn from the Series 2006-2 Reserve Account
      and
      the Series 2006-2 Yield Supplement Account pursuant to the immediately preceding
      sentence, the Administrator shall instruct the Indenture Trustee in writing
      at
      or before 10:00 A.M., New York City time, on the Business Day immediately
      preceding such Payment Date, and the Indenture 

     

     

    
      
         

      

      
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    Trustee
      shall, by 11:00 A.M., New York City time, on such Payment Date, withdraw from
      the Series 2006-2 Reserve Account and deposit in the Series 2006-2 Settlement
      Collection Subaccount an amount equal to the lesser of (x) the remaining portion
      of the Deficiency and (y) the Series 2006-2 Reserve Account Amount (after giving
      effect to the withdrawal described in the immediately preceding
      sentence).

     

    (c)  On
      each
      Payment Date, based solely on the information contained in the Monthly
      Settlement Statement with respect to Series 2006-2 Investor Notes, the Indenture
      Trustee shall apply the following amounts allocated to, or deposited in, the
      Series 2006-2 Settlement Collection Subaccount on such Payment Date in the
      following order of priority:

     

    (i)  to
      Holdings, an amount equal to the Series 2006-2 Excess Fleet Receivable Amount,
      if any, for such Payment Date;

     

    (ii)  to
      the
      Gain On Sale Account, an amount equal to the Series 2006-2 Monthly Residual
      Value Gain, if any, for such Payment Date;

     

    (iii)  to
      the
      Servicer, an amount equal to the Series 2006-2 Monthly Servicer Advance
      Reimbursement Amount for such Payment Date;

     

    (iv)  if
      VMS is
      not the Servicer, to the Servicer, an amount equal to the Series 2006-2 Basic
      Servicing Fee for the Series 2006-2 Interest Period ending on such Payment
      Date
plus,
      on the
      first Payment Date following the transfer of the servicing from VMS to a
      successor Servicer pursuant to Section
      9.1
      of the
      Series 1999-1 SUBI Servicing Supplement, to the extent not reimbursed by VMS,
      the reasonable costs and expenses of the successor Servicer incurred in
      connection with the transfer of the servicing, in an amount up to
      $250,000;

     

    (v)  to
      the
      Series 2006-2 Distribution Account, an amount equal to the Series 2006-2 Monthly
      Interest payable on such Payment Date plus
      the
      amount of any unpaid Interest Shortfall, as of the preceding Payment Date,
      together with any Additional Interest on such Interest Shortfall (such amount,
      the “Monthly
      Interest Payment”);

     

    (vi)  to
      the
      Series 2006-2 Distribution Account, an amount equal to the Commitment Fee for
      the Series 2006-2 Interest Period ending on such Payment Date plus
      the
      amount of any unpaid Commitment Fee for any prior Series 2006-2 Interest Period
      (such amount, the “Commitment
      Fee Payment”);
      

     

    (vii)  if
      VMS is
      the Servicer, to the Servicer, an amount equal to the Series 2006-2 Basic
      Servicing Fee for the Series 2006-2 Interest Period ending on such Payment
      Date;

     

    (viii)  to
      the
      Administrator, an amount equal to the Series 2006-2 Administrator Fee for the
      Series 2006-2 Interest Period ending on such Payment Date; 

     

     

     

    
      
         

      

      
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    (ix)  to
      the
      Series 2006-2 Distribution Account, an amount equal to the lesser of (A)
      Increased Costs for such Payment Date and (B) the Additional Costs Cap for
      such
      Payment Date; 

     

    (x)  (A)
      on
      any Payment Date during the Series 2006-2 Revolving Period, other than during
      any Paydown Period, to the Series 2006-2 Principal Collection Subaccount, an
      amount equal to the Series 2006-2 Allocated Asset Amount Deficiency, if any,
      on
      such Payment Date, (B) on any Payment Date during the Series 2006-2 Revolving
      Period and a Paydown Period, to the Series 2006-2 Principal Collection
      Subaccount, an amount equal to the lesser of the Series 2006-2 Principal Payment
      Amount for such Payment Date and the aggregate Purchaser Group Invested Amounts
      with respect to the Non-Extending Purchaser Groups on such Payment Date and
      (C)
      on any Payment Date during the period from and including the first day of the
      Series 2006-2 Amortization Period to and including the Series 2006-2 Note
      Termination Date, to the Series 2006-2 Principal Collection Subaccount, an
      amount equal to the lesser of the Series 2006-2 Principal Payment Amount for
      such Payment Date and the Series 2006-2 Invested Amount on such Payment
      Date;

     

    (xi)  to
      the
      Series 2006-2 Reserve Account, to the extent that a Series 2006-2 Liquid Credit
      Enhancement Deficiency exists or, on any Payment Date immediately succeeding
      a
      Monthly Period falling in the Series 2006-2 Amortization Period, to the extent
      that a Series 2006-2 Allocated Asset Amount Deficiency exists, an amount equal
      to the greater of such deficiencies;

     

    (xii)  to
      the
      Series 2006-2 Yield Supplement Account, to the extent that a Series 2006-2
      Yield
      Supplement Deficiency exists (or, will exist after giving effect to any
      reduction in the 1999-1B Invested Amount on such Payment Date), an amount equal
      to such deficiency; 

     

    (xiii)  to
      the
      Series 2006-2 Distribution Account, an amount equal to the Lease Rate Cap Costs
      for such Payment Date;

     

    (xiv)  if
      VMS is
      not the Servicer, to the Servicer, an amount equal to any Series 2006-2
      Supplemental Servicing Fee for the Series 2006-2 Interest Period ending on
      such
      Payment Date; 

     

    (xv)  to
      the
      Series 2006-2 Distribution Account, an amount equal to the excess, if any,
      of
      (A) Increased Costs for such Payment Date over (B) the Additional Costs Cap
      for
      such Payment Date; and

     

    (xvi)  to
      the
      Issuer, an amount equal to the balance remaining in the Series 2006-2 Settlement
      Collection Subaccount.

     

    Section
      5A.5 Payment
      of Monthly Interest Payment, Fees and Expenses.

     

    (a)  On
      each
      Payment Date, based solely on the information contained in the Monthly
      Settlement Statement with respect to the Series 2006-2 Investor Notes, the
      Indenture Trustee shall, in accordance with Section
      6.1
      of the
      Base Indenture, pay to the Administrative Agent, for the account of the Series
      2006-2 Investor 

     

     

    
      
         

      

      
        42

        
          

        

      

      
         

      

    

     

    Noteholders,
      from the Series 2006-2 Distribution Account the Monthly Interest Payment to
      the
      extent of the amount deposited in the Series 2006-2 Distribution Account for
      the
      payment of interest pursuant to Section
      5A.4(c)(v).
      Upon
      the receipt of funds from the Indenture Trustee on each Payment Date on account
      of the Monthly Interest Payment, the Administrative Agent shall pay to each
      Funding Agent with respect to a Purchaser Group an amount equal to the Monthly
      Funding Costs with respect to such Purchaser Group with respect to the
      immediately succeeding Series 2006-2 Interest Period plus
      the
      amount of any unpaid Interest Shortfall payable to such Purchaser Group as
      of
      the preceding Payment Date, together with any Additional Interest thereon.
      If
      the amount deposited in the Series 2006-2 Distribution Account on any Payment
      Date pursuant to Section
      5A.4(c)(v)
      is less
      than the Monthly Interest Payment on such Payment Date, the Administrative
      Agent
      shall pay the amount available to the Funding Agents, on behalf of the Purchaser
      Groups, on a pro
      rata
      basis,
      based on the Monthly Funding Costs with respect to each Purchaser Group with
      respect to the immediately succeeding Series 2006-2 Interest
      Period.

     

    (b)  On
      each
      Payment Date, based solely on the information contained in the Monthly
      Settlement Statement with respect to Series 2006-2 Investor Notes, the Indenture
      Trustee shall pay to the Administrative Agent, for the account of the Series
      2006-2 Investor Noteholders, from the Series 2006-2 Distribution Account the
      Commitment Fee Payment for such Payment Date to the extent of the amount
      deposited in the Series 2006-2 Distribution Account for the payment of such
      Commitment Fee Payment pursuant to Section
      5A.4(c)(vi).
      Upon
      the receipt of funds from the Indenture Trustee on each Payment Date on account
      of the Commitment Fee Payment, the Administrative Agent shall pay to each
      Funding Agent with respect to a Purchaser Group an amount equal to the
      Commitment Fee payable to such Purchaser Group with respect to the immediately
      succeeding Series 2006-2 Interest Period plus
      the
      amount of any unpaid Commitment Fee for any prior Series 2006-2 Interest Period
      payable to such Purchaser Group. If the amount deposited in the Series 2006-2
      Distribution Account on any Payment Date pursuant to Section
      5A.4(c)(vi)
      is less
      than the Commitment Fee Payment on such Payment Date, the Administrative Agent
      shall pay the amount available to the Funding Agents, on behalf of the Purchaser
      Groups, on a pro
      rata
      basis,
      based on the Commitment Fee payable to each Purchaser Group with respect to
      the
      immediately succeeding Series 2006-2 Interest Period.

     

    (c)  On
      each
      Payment Date, based solely on the information contained in the Monthly
      Settlement Statement with respect to Series 2006-2 Investor Notes, the Indenture
      Trustee shall pay to the Administrative Agent, for the account of the Series
      2006-2 Investor Noteholders, from the Series 2006-2 Distribution Account any
      Article 7 Costs due and payable on such Payment Date to any CP Conduit Purchaser
      or any APA Bank to the extent of the amounts deposited in the Series 2006-2
      Distribution Account for the payment of such Article 7 Costs pursuant to
Sections
      5A.4(c)(ix)
      and
(xv).
      Upon
      the receipt of funds from the Indenture Trustee on any Payment Date on account
      of Article 7 Costs, the Administrative Agent shall pay such amounts to the
      Funding Agent with respect to the CP Conduit Purchaser or the APA Bank owed
      such
      amounts. If the amounts deposited in the Series 2006-2 Distribution Account
      on
      any Payment Date pursuant to Section
      5A.4(c)(ix)
      and
(xv)
      are less
      than the Article 7 Costs due and payable on such Payment Date, the
      Administrative Agent shall pay the amounts available to the Funding Agents
      with
      respect to the CP Conduit Purchasers and APA Banks owed such amounts, on a
      pro
      rata
      basis,
      based on the amounts owing to such CP Conduit Purchasers and APA
      Banks.

     

     

    
      
         

      

      
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    (d)  On
      each
      Payment Date, based solely on the information contained in the Monthly
      Settlement Statement with respect to Series 2006-2 Investor Notes, the Indenture
      Trustee shall pay to the Persons owed any other unpaid Program Costs due and
      payable on such Payment Date or any amounts due and payable pursuant to
Section
      2.8
      on such
      Payment Date from the Series 2006-2 Distribution Account to the extent of the
      amount deposited in the Series 2006-2 Distribution Account for the payment
      of
      such Program Costs pursuant to Sections
      5A.4(c)(ix)
      and
(xv).
      If the
      excess of the amounts deposited in the Series 2006-2 Distribution Account on
      any
      Payment Date pursuant to Section
      5A.4(c)(ix)
      and
(xv)
      over the
      amount of Article 7 Costs due and payable on such Payment Date is less than
      the
      sum of the unpaid Program Costs due and payable on such Payment Date and the
      amounts due and payable pursuant to Section
      2.8
      on such
      Payment Date, the Indenture Trustee shall pay the amount available to Persons
      owed such amounts on a pro
      rata
      basis,
      based on the amounts owing to such Persons.

     

    (e)  On
      each
      Payment Date, based solely on the information contained in the Monthly
      Settlement Statement with respect to Series 2006-2 Investor Notes, the Indenture
      Trustee shall pay to the Administrative Agent, for the account of the Series
      2006-2 Investor Noteholders, from the Series 2006-2 Distribution Account any
      Lease Rate Cap Costs to the extent of the amount deposited in the Series 2006-2
      Distribution Account for the payment of such Lease Rate Cap Costs pursuant
      to
Sections
      5A.4(c)(xiii).
      Upon
      the receipt of funds from the Indenture Trustee on each Payment Date on account
      of Lease Rate Cap Costs, the Administrative Agent shall pay to each Funding
      Agent with respect to a Purchaser an amount equal to the Lease Rate Cap Costs
      payable to such Purchaser. If the amount deposited in the Series 2006-2
      Distribution Account on any Payment Date pursuant to Section
      5A.4(c)(xiii)
      is less
      than the Lease Rate Cap Costs on such Payment Date, the Administrative Agent
      shall pay the amount available to the Funding Agents, on behalf of the
      Purchasers, on a pro
      rata
      basis,
      based on the Lease Rate Cap Costs payable to each Purchaser.

     

    Section
      5A.6.
      Determination
      of Monthly Principal Payment.

     

    The
      amount (the “Monthly
      Principal Payment”)
      distributable from the Series 2006-2 Principal Collection Subaccount on each
      Payment Date during the Series 2006-2 Amortization Period shall be equal to
      the
      amount on deposit in such account on such Payment Date; provided,
      however,
      that
      the Monthly Principal Payment on any Payment Date shall not exceed the Series
      2006-2 Invested Amount on such Payment Date. Further, on any other Business
      Day
      during the Series 2006-2 Amortization Period prior to the occurrence of an
      Amortization Event, funds may be distributed from the Series 2006-2 Distribution
      Account to the Series 2006-2 Investor Noteholders in accordance with
Section
      5A.7(c).
      On each
      Payment Date during the Series 2006-2 Amortization Period, based solely on
      the
      information contained in the Monthly Settlement Statement with respect to the
      Series 2006-2 Investor Notes, the Indenture Trustee shall withdraw from the
      Series 2006-2 Principal Collection Subaccount and deposit in the Series 2006-2
      Distribution Account an amount equal to the Monthly Principal Payment on such
      Payment Date.

     

    Section
      5A.7 Payment
      of Principal.

     

     

     

    
      
         

      

      
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    (a)  The
      principal amount of the Series 2006-2 Investor Notes shall be due and payable
      on
      the Final Maturity Date. 

     

    (b)  On
      each
      Payment Date during the Series 2006-2 Amortization Period, based solely on
      the
      information contained in the Monthly Settlement Statement with respect to Series
      2006-2 Investor Notes, the Indenture Trustee shall, in accordance with
Section
      6.1
      of the
      Base Indenture, pay to the Administrative Agent, for the account of the Series
      2006-2 Investor Noteholders, from the Series 2006-2 Distribution Account the
      Monthly Principal Payment. Upon the receipt of funds from the Indenture Trustee
      on any Payment Date on account of the Monthly Principal Payment, the
      Administrative Agent shall pay to each Funding Agent with respect to a Purchaser
      Group, such Purchaser Group’s Pro Rata Share of the Monthly Principal
      Payment.

     

    (c)  On
      the
      date of any Decrease, the Indenture Trustee shall pay to the Administrative
      Agent, for the account of the Series 2006-2 Investor Noteholders, from the
      Series 2006-2 Distribution Account the amount of the Decrease indicated in
      the
      request received by the Indenture Trustee pursuant to Section
      2.5(a).
      Upon
      the receipt of funds from the Indenture Trustee (i) on the date of any Decrease
      during the Series 2006-2 Revolving Period, other than during any Paydown Period,
      the Administrative Agent shall pay to each Funding Agent with respect to a
      Purchaser Group, such Purchaser Group’s Pro Rata Share of the amount of such
      Decrease (including, any amount thereof in excess of the amount required on
      such
      date to reduce the aggregate Purchaser Group Invested Amounts of all
      Non-Extending Purchaser Groups to zero pursuant to clause (ii) of this
Section
      5A.7(c)),
      (ii)
      on the date of any Decrease during the Series 2006-2 Revolving Period and a
      Paydown Period, the Administrative Agent shall pay to each Funding Agent with
      respect to a Non-Extending Purchaser Group, a pro
      rata
      amount
      of such Decrease, based on the Purchaser Group Invested Amounts with respect
      to
      such Non-Extending Purchaser Groups and (iii) on the date of any Decrease during
      the Series 2006-2 Amortization Period, the Administrative Agent shall pay to
      each Funding Agent with respect to a Purchaser Group, such Purchaser Group’s Pro
      Rata Share of the amount of such Decrease. Each Purchaser Group’s share of the
      amount of any Decrease on any Business Day shall be allocated by such Purchaser
      Group first to reduce the Available CP Funding Amount with respect to such
      Purchaser Group and the Available APA Bank Funding Amount with respect to such
      Purchaser Group on such Business Day and then to reduce the portion of the
      Purchaser Group Invested Amount with respect to such Purchaser Group allocated
      to CP Tranches and Eurodollar Tranches in such order as such Purchaser Group
      may
      select in order to minimize costs payable pursuant to Section
      7.4.

     

    Section
      5A.8 The
      Administrator’s Failure to Instruct the Indenture Trustee to Make a Deposit or
      Payment.

     

    When
      any
      payment or deposit hereunder or under any other Transaction Document is required
      to be made by the Indenture Trustee at or prior to a specified time, the
      Administrator shall deliver any applicable written instructions with respect
      thereto reasonably in advance of such specified time. If the Administrator
      fails
      to give notice or instructions to make any payment from or deposit into the
      Collection Account or any subaccount thereof required to be given by the
      Administrator, at the time specified herein or in any other Transaction Document
      (after giving effect to applicable grace periods), the Indenture Trustee shall
      make such payment

     

     

    
      
         

      

      
        45

        
          

        

      

      
         

      

    

     

    or
      deposit into or from the Collection Account or such subaccount without such
      notice or instruction from the Administrator; provided
      that the
      Administrator, upon request of the Indenture Trustee, promptly provides the
      Indenture Trustee with all information necessary to allow the Indenture Trustee
      to make such a payment or deposit. In the event that the Indenture Trustee
      shall
      take or refrain from taking action pursuant to this Section 5A.8.,
      the
      Administrator shall, by 5:00 P.M., New York City time, on any day the Indenture
      Trustee makes a payment or deposit based on information or direction from the
      Administrator, provide (i) written confirmation of any such direction and (ii)
      written confirmation of all information used by the Administrator in giving
      any
      such direction.

     

    Section
      5A.9 Series
      2006-2 Reserve Account.

     

    (a)  The
      Indenture Trustee shall establish and maintain in the name of the Indenture
      Trustee for the benefit of the Series 2006-2 Investor Noteholders an account
      (the “Series
      2006-2 Reserve Account”),
      bearing a designation clearly indicating that the funds deposited therein are
      held for the benefit of the Series 2006-2 Investor Noteholders. The Series
      2006-2 Reserve Account shall be an Eligible Deposit Account; provided
      that, if
      at any time such account is not an Eligible Deposit Account, then the Indenture
      Trustee shall, within 30 days of obtaining knowledge of such ineligibility,
      establish a new Series 2006-2 Reserve Account that is an Eligible Deposit
      Account. If the Indenture Trustee establishes a new Series 2006-2 Reserve
      Account, it shall transfer all cash and investments from the non-qualifying
      Series 2006-2 Reserve Account into the new Series 2006-2 Reserve Account.
      Initially, the Series 2006-2 Reserve Account will be established with JPMorgan
      Chase.

     

    (b)  So
      long
      as no Amortization Event has occurred, the Issuer may instruct the institution
      maintaining the Series 2006-2 Reserve Account in writing to invest funds on
      deposit in the Series 2006-2 Reserve Account from time to time in Permitted
      Investments selected by the Issuer (by standing instructions or otherwise);
      provided,
      however,
      that
      any such investment shall mature not later than the Business Day prior to the
      Payment Date following the date on which such funds were received. After the
      occurrence of an Amortization Event, the Administrative Agent shall instruct
      the
      institution maintaining the Series 2006-2 Reserve Account in writing to invest
      funds on deposit in the Series 2006-2 Reserve Account from time to time in
      Permitted Investments selected by the Administrative Agent (by standing
      instructions or otherwise); provided,
      however,
      that
      any such investment shall mature not later than the Business Day prior to the
      Payment Date following the date on which such funds were received. In absence
      of
      written direction as provided hereunder, funds on deposit in the Series 2006-2
      Reserve Account shall remain uninvested. 

     

    (c)  All
      interest and earnings (net of losses and investment expenses) paid on funds
      on
      deposit in the Series 2006-2 Reserve Account shall be deemed to be on deposit
      and available for distribution.

     

    (d)  If
      there
      is a Series 2006-2 Reserve Account Surplus on any Settlement Date, the
      Administrator may notify the Indenture Trustee thereof in writing and instruct
      the Indenture Trustee to withdraw from the Series 2006-2 Reserve Account and
      pay
      to the Issuer, and the Indenture Trustee shall withdraw from the Series 2006-2
      Reserve Account and pay to the Issuer, so long as no Series 2006-2 Allocated
      Asset Amount Deficiency exists or would result 

     

     

    
      
         

      

      
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    therefrom,
      an amount up to the lesser of (i) such Series 2006-2 Reserve Account Surplus
      on
      such Business Day and (ii) the Series 2006-2 Reserve Account Amount on such
      Business Day.

     

    (e)  Amounts
      will be withdrawn from the Series 2006-2 Reserve Account in accordance with
      Section
      5A.4(b).

     

    (f)  In
      order
      to secure and provide for the repayment and payment of the Issuer Obligations
      with respect to the Series 2006-2 Investor Notes, the Issuer hereby grants
      a
      security interest in and assigns, pledges, grants, transfers and sets over
      to
      the Indenture Trustee, for the benefit of the Series 2006-2 Investor
      Noteholders, all of the Issuer’s right, title and interest in and to the
      following (whether now or hereafter existing or acquired): (i) the Series 2006-2
      Reserve Account, including any security entitlement thereto; (ii) all funds
      on
      deposit therein from time to time; (iii) all certificates and instruments,
      if
      any, representing or evidencing any or all of the Series 2006-2 Reserve Account
      or the funds on deposit therein from time to time; (iv) all investments made
      at
      any time and from time to time with monies in the Series 2006-2 Reserve Account,
      whether constituting securities, instruments, general intangibles, investment
      property, financial assets or other property; (v) all interest, dividends,
      cash,
      instruments and other property from time to time received, receivable or
      otherwise distributed in respect of or in exchange for the Series 2006-2 Reserve
      Account, the funds on deposit therein from time to time or the investments
      made
      with such funds; and (vi) all proceeds of any and all of the foregoing,
      including, without limitation, cash. The Indenture Trustee and the Series 2006-2
      Investor Noteholders shall have no interest in any amounts withdrawn from the
      Series 2006-2 Reserve Account and paid to the Issuer.

     

    (g)  On
      the
      Series 2006-2 Note Termination Date, the Indenture Trustee, acting in accordance
      with the written instructions of the Administrator, shall withdraw from the
      Series 2006-2 Reserve Account and pay to the Issuer all amounts on deposit
      therein.

     

    Section
      5A.10 Series
      2006-2 Yield Supplement Account.

     

    (a)  The
      Indenture Trustee shall establish and maintain in the name of the Indenture
      Trustee for the benefit of the Series 2006-2 Investor Noteholders an account
      (the “Series
      2006-2 Yield Supplement Account”),
      bearing a designation clearly indicating that the funds deposited therein are
      held for the benefit of the Series 2006-2 Investor Noteholders. The Series
      2006-2 Yield Supplement Account shall be an Eligible Deposit Account;
provided
      that, if
      such account is not an Eligible Deposit Account, then the Indenture Trustee
      shall, within 30 days of obtaining knowledge of such ineligibility, establish
      a
      new Series 2006-2 Yield Supplement Account that is an Eligible Deposit Account.
      If the Indenture Trustee establishes a new Series 2006-2 Yield Supplement
      Account, it shall transfer all cash and investments from the non-qualifying
      Series 2006-2 Yield Supplement Account into the new Series 2006-2 Yield
      Supplement Account. Initially, the Series 2006-2 Yield Supplement Account will
      be established with JPMorgan Chase.

     

    (b)  So
      long
      as no Amortization Event has occurred, the Issuer may instruct the institution
      maintaining the Series 2006-2 Yield Supplement Account in writing to invest
      funds on deposit in the Series 2006-2 Yield Supplement Account from time to
      time
      in Permitted Investments selected by the Issuer (by standing instructions or
      otherwise); provided,
      however,

     

     

    
      
         

      

      
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     that
      any such investment shall mature not later than the Business Day prior to the
      Payment Date following the date on which such funds were received. After the
      occurrence of an Amortization Event, the Administrative Agent shall instruct
      the
      institution maintaining the Series 2006-2 Yield Supplement Account in writing
      to
      invest funds on deposit in the Series 2006-2 Yield Supplement Account from
      time
      to time in Permitted Investments selected by the Administrative Agent (by
      standing instructions or otherwise); provided,
      however,
      that
      any such investment shall mature not later than the Business Day prior to the
      Payment Date following the date on which such funds were received. In absence
      of
      written direction as provided hereunder, funds on deposit in the Series 2006-2
      Yield Supplement Account shall remain uninvested.

     

    (c)  All
      interest and earnings (net of losses and investment expenses) paid on funds
      on
      deposit in the Series 2006-2 Yield Supplement Account shall be deemed to be
      on
      deposit and available for distribution.

     

    (d)  If
      there
      is a Series 2006-2 Yield Supplement Account Surplus on any Settlement Date,
      the
      Administrator may notify the Indenture Trustee thereof in writing and request
      the Indenture Trustee to withdraw from the Series 2006-2 Yield Supplement
      Account and pay to the Issuer, and the Indenture Trustee shall withdraw from
      the
      Series 2006-2 Yield Supplement Account and pay to the Issuer an amount up to
      the
      lesser of (i) such Series 2006-2 Yield Supplement Account Surplus on such
      Business Day and (ii) the Series 2006-2 Yield Supplement Account Amount on
      such
      Business Day.

     

    (e)  Amounts
      will be withdrawn from the Series 2006-2 Yield Supplement Account in accordance
      with Section
      5A.4(b).

     

    (f)  In
      order
      to secure and provide for the repayment and payment of the Issuer Obligations
      with respect to the Series 2006-2 Investor Notes, the Issuer hereby grants
      a
      security interest in and assigns, pledges, grants, transfers and sets over
      to
      the Indenture Trustee, for the benefit of the Series 2006-2 Investor
      Noteholders, all of the Issuer’s right, title and interest in and to the
      following (whether now or hereafter existing or acquired): (i) the Series 2006-2
      Yield Supplement Account, including any security entitlement thereto; (ii)
      all
      funds on deposit therein from time to time; (iii) all certificates and
      instruments, if any, representing or evidencing any or all of the Series 2006-2
      Yield Supplement Account or the funds on deposit therein from time to time;
      (iv)
      all investments made at any time and from time to time with monies in the Series
      2006-2 Yield Supplement Account, whether constituting securities, instruments,
      general intangibles, investment property, financial assets or other property;
      (v) all interest, dividends, cash, instruments and other property from time
      to
      time received, receivable or otherwise distributed in respect of or in exchange
      for the Series 2006-2 Yield Supplement Account, the funds on deposit therein
      from time to time or the investments made with such funds; and (vi) all proceeds
      of any and all of the foregoing, including, without limitation, cash. The
      Indenture Trustee and the Series 2006-2 Investor Noteholders shall have no
      interest in any amounts withdrawn from the Series 2006-2 Yield Supplement
      Account and paid to the Issuer.

     

    (g)  On
      the
      Series 2006-2 Note Termination Date, the Indenture Trustee, acting in accordance
      with the written instructions of the Administrator, shall withdraw from the
      Series 2006-2 Yield Supplement Account and pay to the Issuer all amounts on
      deposit therein.

     

     

    
      
         

      

      
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    Section
      5A.11 Series
      2006-2 Distribution Account

     

    (a)  The
      Indenture Trustee shall establish and maintain in the name of the Indenture
      Trustee for the benefit of the Series 2006-2 Investor Noteholders an account
      (the “Series
      2006-2 Distribution Account”),
      bearing a designation clearly indicating that the funds deposited therein are
      held for the benefit of the Series 2006-2 Investor Noteholders. The Series
      2006-2 Distribution Account shall be maintained as an Eligible Deposit Account;
      provided
      that, if
      such account is not an Eligible Deposit Account, then the Indenture Trustee
      shall, within 30 days of obtaining knowledge of such ineligibility, establish
      a
      new Series 2006-2 Distribution Account that is an Eligible Deposit Account.
      If
      the Indenture Trustee establishes a new Series 2006-2 Distribution Account,
      it
      shall transfer all cash and investments from the non-qualifying Series 2006-2
      Distribution Account into the new Series 2006-2 Distribution Account. Initially,
      the Series 2006-2 Distribution Account will be established with JPMorgan
      Chase.

     

    (b)  In
      order
      to secure and provide for the repayment and payment of the Issuer Obligations
      with respect to the Series 2006-2 Investor Notes, the Issuer hereby grants
      a
      security interest in and assigns, pledges, grants, transfers and sets over
      to
      the Indenture Trustee, for the benefit of the Series 2006-2 Investor
      Noteholders, all of the Issuer’s right, title and interest in and to the
      following (whether now or hereafter existing or acquired): (i) the Series 2006-2
      Distribution Account, including any security entitlement thereto; (ii) all
      funds
      on deposit therein from time to time; (iii) all certificates and instruments,
      if
      any, representing or evidencing any or all of the Series 2006-2 Distribution
      Account or the funds on deposit therein from time to time; (iv) all interest,
      dividends, cash, instruments and other property from time to time received,
      receivable or otherwise distributed in respect of or in exchange for the Series
      2006-2 Distribution Account, the funds on deposit therein from time to time;
      and
      (v) all proceeds of any and all of the foregoing, including, without limitation,
      cash. 

     

    Section
      5A.12 Lease
      Rate Caps.

     

    (a)  The
      Issuer shall have obtained on the Series 2006-2 Closing Date and shall
      thereafter maintain one or more interest rate caps, each from a Series 2006-2
      Eligible Counterparty, having, in the aggregate, a notional amount on the Series
      2006-2 Closing Date at least equal to the aggregate Lease Balance of all Fixed
      Rate Leases allocated to the Lease SUBI Portfolio as of the Series 2006-2
      Closing Date, plus, in the case of all such Fixed Rate Leases that are
      Closed-End Leases, the aggregate Stated Residual Values of the related Leased
      Vehicles and on each Payment Date thereafter at least equal to the aggregate
      scheduled Lease Balance of all such Fixed Rate Leases as of the last day of
      the
      Monthly Period immediately preceding such Payment Date, plus, in the case of
      all
      such Fixed Rate Leases that are Closed-End Leases, the aggregate Stated Residual
      Values of the related Leased Vehicles, and an effective strike rate based on
      the
      eurodollar rate set forth therein in effect on the dates set forth therein
      at
      the most equal to the weighted average fixed rate of interest on such Fixed
      Rate
      Leases minus 0.465% per annum. 

     

    (b)  On
      or
      prior to the date that any Fixed Rate Lease is allocated to the Lease SUBI
      Portfolio on or after the Series 2006-2 Closing Date, the Issuer shall have
      obtained and shall thereafter maintain an interest rate cap from a Series 2006-2
      Eligible Counterparty having a notional amount equal to the initial Lease
      Balance of such Fixed Rate Lease, plus, in the case of 

     

     

    
      
         

      

      
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    a
      Closed-End Lease, the Stated Residual Value of the related Leased Vehicle and
      on
      each Payment Date thereafter at least equal to the scheduled Lease Balance
      of
      such Fixed Rate Lease as of the last day of the Monthly Period immediately
      preceding such Payment Date, plus, in the case of a Closed-End Lease, the Stated
      Residual Value of the related Leased Vehicle and an effective strike rate based
      on the eurodollar rate set forth therein in effect on the dates set forth
      therein at the most equal to the fixed rate of interest on such Fixed Rate
      Lease
      minus 0.465% per annum. 

     

    (c)  On
      or
      prior to each Settlement Date, the Issuer shall have obtained and shall
      thereafter maintain an interest rate cap from a Series 2006-2 Eligible
      Counterparty having a notional amount equal to the aggregate Lease Balance
      of
      each Floating Rate Lease allocated to the Lease SUBI that shall have been
      converted to a Fixed Rate Lease during the immediately preceding Monthly Period,
      plus, in the case of a Closed-End Lease, the Stated Residual Value of the
      related Leased Vehicle and on each Payment Date thereafter at least equal to
      the
      scheduled Lease Balance of such newly converted Fixed Rate Lease as of the
      last
      day of the Monthly Period immediately preceding such Payment Date, plus, in
      the
      case of a Closed-End Lease, the Stated Residual Value of the related Leased
      Vehicle and an effective strike rate based on the eurodollar rate set forth
      therein in effect on the dates set forth therein at the most equal to the fixed
      rate of interest on such newly converted Fixed Rate Lease minus 0.465% per
      annum.

     

    (d)  If
      the
      short-term credit rating of any provider of an interest rate cap required to
      be
      obtained and maintained by the Issuer pursuant to this Section
      5A.12
      falls
      below “A-1+” by Standard & Poor’s or “P-1” by Moody’s or the long-term
      unsecured credit rating of any such provider falls below “A+” by Standard &
Poor’s or “Aa3” by Moody’s, the Issuer shall obtain an equivalent interest rate
      cap from a Series 2006-2 Eligible Counterparty within 30 days of such decline
      in
      credit rating unless such provider provides some form of collateral for its
      obligations under its interest rate cap that is reasonably satisfactory to
      the
      Administrative Agent. The Issuer will not permit any interest rate cap required
      to be obtained and maintained by the Issuer pursuant to this Section
      5A.12
      to be
      terminated or transferred in whole or in part unless a replacement interest
      rate
      cap therefor has been provided as described in the immediately preceding
      sentence and, after giving effect thereto, the Issuer has the interest rate
      caps
      required to be obtained and maintained by the Issuer pursuant to this
Section
      5A.12.
      

     

    (e)  If
      the
      Issuer fails to obtain or maintain any Lease Rate Cap that it is required to
      obtain and maintain in accordance with Sections 5A.12(a),
      (b)
      or
(c)
      or fails
      to replace the Lease Rate Cap of any downgraded provider of an interest rate
      cap
      required to be maintained hereunder in accordance with Section
      5A.12(d)
      or
      otherwise satisfy the provisions of Section
      5A.12(d),
      the
      Administrative Agent, at the expense of the Issuer, acting at the direction
      of
      the Series 2006-2 Required Investor Noteholders, may obtain any such Lease
      Rate
      Cap on commercially reasonable terms. In the alternative, the Administrative
      Agent, at the expense of the Issuer, acting at the direction of the Series
      2006-2 Required Investor Noteholders, may obtain on commercially reasonable
      terms any Hedging Instrument that the Administrative Agent reasonably determines
      will cover the interest rate exposure that would have been covered by the Lease
      Rate Cap that the Issuer shall have failed to obtain or maintain hereunder.
      Each
      Series 2006-2 Investor Noteholder hereby agrees to reimburse the Administrative
      Agent, to the extent not reimbursed by the Issuer, for any costs or expenses
      incurred by the Administrative Agent in connection with obtaining any Hedging
      Instruments in accordance with the terms of this Section
      

     

     

    
      
         

      

      
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    5A.12(e).
      Any
      amounts owing by the Issuer to the Series 2006-2 Investor Noteholders pursuant
      to this Section 5A.12(e) on any Payment Date shall be payable out of funds
      available pursuant to Section
      5A.4(c)(xiii)
      on such
      Payment Date.

     

    Section
      5A.13 Indenture
      Trustee As Securities Intermediary.
      (a) The
      Indenture Trustee or other Person holding the Series 2006-2 Reserve Account,
      the
      Series 2006-2 Yield Supplement Account or the Series 2006-2 Distribution Account
      (each a “Series
      2006-2 Designated Account”)
      shall
      be the “Securities Intermediary”. If the Securities Intermediary in respect of
      any Series 2006-2 Designated Account is not the Indenture Trustee, the Issuer
      shall obtain the express agreement of such Person to the obligations of the
      Securities Intermediary set forth in this Section
      5A.13.
      

     

    (b)
      The
      Securities Intermediary agrees that:

     

    (i)  The
      Series 2006-2 Designated Accounts are accounts to which “financial assets”
within the meaning of Section 8-102(a)(9) (“Financial
      Assets”)
      of the
      UCC in effect in the State of New York (the “New
      York UCC”)
      will
      be credited;

     

    (ii)  All
      securities or other property underlying any Financial Assets credited to any
      Series 2006-2 Designated Account shall be registered in the name of the
      Securities Intermediary, indorsed to the Securities Intermediary or in blank
      or
      credited to another securities account maintained in the name of the Securities
      Intermediary and in no case will any Financial Asset credited to any Series
      2006-2 Designated Account be registered in the name of the Issuer, payable
      to
      the order of the Issuer or specially endorsed to the Issuer;

     

    (iii)  All
      property delivered to the Securities Intermediary pursuant to this Indenture
      Supplement will be promptly credited to the appropriate Series 2006-2 Designated
      Account;

     

    (iv)  Each
      item
      of property (whether investment property, security, instrument or cash) credited
      to a Series 2006-2 Designated Account shall be treated as a Financial
      Asset;

     

    (v)  If
      at any
      time the Securities Intermediary shall receive any order from the Indenture
      Trustee directing transfer or redemption of any Financial Asset relating to
      the
      Series 2006-2 Designated Accounts, the Securities Intermediary shall comply
      with
      such entitlement order without further consent by the Issuer or the
      Administrator;

     

    (vi)  The
      Series 2006-2 Designated Accounts shall be governed by the laws of the State
      of
      New York, regardless of any provision of any other agreement. For purposes
      of
      the UCC, New York shall be deemed to the Securities Intermediary’s jurisdiction
      and the Series 2006-2 Designated Accounts (as well as the “securities
      entitlements” (as defined in Section 8-102(a)(17) of the New York UCC) related
      thereto) shall be governed by the laws of the State of New York;

     

     

    
      
         

      

      
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    (vii)  The
      Securities Intermediary has not entered into, and until termination of this
      Indenture Supplement, will not enter into, any agreement with any other Person
      relating to the Series 2006-2 Designated Accounts and/or any Financial Assets
      credited thereto pursuant to which it has agreed to comply with entitlement
      orders (as defined in Section 8-102(a)(8) of the New York UCC) of such other
      Person and the Securities Intermediary has not entered into, and until the
      termination of this Indenture Supplement will not enter into, any agreement
      with
      the Issuer purporting to limit or condition the obligation of the Securities
      Intermediary to comply with entitlement orders as set forth in Section
      5A.13(b)(v)
      of this
      Indenture Supplement; and

     

    (viii)  Except
      for the claims and interest of the Indenture Trustee and the Issuer in the
      Series 2006-2 Designated Accounts, the Securities Intermediary knows of no
      claim
      to, or interest, in the Series 2006-2 Designated Accounts or in any Financial
      Asset credited thereto. If the Securities Intermediary has actual knowledge
      of
      the assertion by any other person of any lien, encumbrance, or adverse claim
      (including any writ, garnishment, judgment, warrant of attachment, execution
      or
      similar process) against any Series 2006-2 Designated Account or in any
      Financial Asset carried therein, the Securities Intermediary will promptly
      notify the Indenture Trustee, the Administrator, the Administrative Agent and
      the Issuer thereof.

     

    (c)
      The
      Indenture Trustee shall possess all right, title and interest in all funds
      on
      deposit from time to time in the Series 2006-2 Designated Accounts and in all
      proceeds thereof, and shall be the only person authorized to originate
      entitlement orders in respect of the Series 2006-2 Designated
      Accounts.

     

    

     

    
      
         

      

      
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    ARTICLE
      4  

     

    AMORTIZATION
      EVENTS

     

    If
      any
      one of the following events shall occur with respect to the Series 2006-2
      Investor Notes:

     

    (a)  the
      Series 2006-2 Reserve Account shall have become subject to an injunction,
      estoppel or other stay or a Lien (other than a Permitted Lien);

     

    (b)  
      the
      Series 2006-2 Yield Supplement Account shall have become subject to an
      injunction, estoppel or other stay or a Lien (other than a Permitted
      Lien);

     

    (c)  
      a Series
      2006-2 Liquid Credit Enhancement Deficiency shall occur and continue for at
      least two Business Days;

     

     

    
      
         

      

      
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    (d)  
      a Series
      2006-2 Allocated Asset Amount Deficiency shall occur and continue for at least
      two Business Days;

     

    (e)  
      a Series
      2006-2 Yield Supplement Deficiency shall occur and continue for at least two
      Business Days;

     

    (f)  
      the
      Three Month Average Charge-Off Ratio with respect to any Settlement Date exceeds
      1.00%;

     

    (g)  
      the
      Three Month Average Paid-In Advance Loss Ratio with respect to any Settlement
      Date exceeds 1.50%;

     

    (h)  
      the
      Three Month Average Delinquency Ratio with respect to any Settlement Date
      exceeds 7.0%;

     

    (i)  
      the Loan
      Principal Amount on any Settlement Date is less than the Aggregate Invested
      Amount on such Settlement Date;

     

    (j)  
      any
      Servicer Termination Event shall occur;

     

    (k)  
      any
      Termination Event shall occur;

     

    (l)  
      an Event
      of Default with respect to the Series 2006-2 Investor Notes shall
      occur;

     

    (m)  
      an
      Insolvency Event shall occur with respect to SPV, Holdings, the Origination
      Trust, VMS, PHH Sub 1, PHH Sub 2 or PHH;

     

    (n)  a
      Lease
      Rate Cap Event shall occur and continue for two Business Days;

     

    (o)  the
      failure on the part of the Issuer to pay any Commitment Fee due and payable
      on
      any Payment Date which failure continues unremedied for two Business
      Days;

     

    (p)  
      failure
      on the part of the Issuer (i) to make any payment or deposit required by the
      terms of the Indenture (or within the applicable grace period which shall not
      exceed two Business Days after the date such payment or deposit is required
      to
      be made) or (ii) duly to observe or perform in any material respect any
      covenants or agreements of the Issuer set forth in the Base Indenture or this
      Indenture Supplement (other than any such failure that constitutes a Lease
      Rate
      Cap Event), which failure continues unremedied for a period of 30 days after
      there shall have been given to the Issuer by the Indenture Trustee or the Issuer
      and the Indenture Trustee by any Series 2006-2 Investor Noteholder, written
      notice specifying such default and requiring it to be remedied; 

     

    (q)  
      any
      representation or warranty made by the Issuer in the Base Indenture or this
      Indenture Supplement, or any information required to be delivered by the Issuer
      to the Indenture Trustee shall prove to have been incorrect in any material
      respect when made or when delivered, which continues to be incorrect in any
      material respect for a period of 30 days after 

     

     

    
      
         

      

      
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    there
      shall have been given to the Issuer by the Indenture Trustee or the Issuer
      and
      the Indenture Trustee by any Series 2006-2 Investor Noteholder, written notice
      thereof;

     

    (r)  
      the
      Indenture Trustee shall for any reason cease to have a valid and perfected
      first
      priority security interest in the Collateral or any of VMS, the Issuer or any
      Affiliate of either thereof shall so assert; 

     

    (s)  
      there
      shall have been filed against PHH, PHH Sub 1, PHH Sub2, VMS, the Origination
      Trust, Holdings or the Issuer (i) a notice of federal tax Lien from the Internal
      Revenue Service, (ii) a notice of Lien from the PBGC under Section 412(n) of
      the
      Internal Revenue Code or Section 302(f) of ERISA for a failure to make a
      required installment or other payment to a plan to which either of such sections
      applies or (iii) a notice of any other Lien the existence of which could
      reasonably be expected to have a material adverse effect on the business,
      operations or financial condition of such Person, and, in each case, 40 days
      shall have elapsed without such notice having been effectively withdrawn or
      such
      Lien having been released or discharged; 

     

    (t)  
      one or
      more judgments or decrees shall be entered against the Issuer involving in
      the
      aggregate a liability (not paid or fully covered by insurance) of $100,000
      or
      more and such judgments or decrees shall not have been vacated, discharged,
      stayed or bonded pending appeal within 30 days from the entry thereof;

     

    (u)  
      any of
      the Transaction Documents shall cease, for any reason, to be in full force
      and
      effect, other than in accordance with its terms; or 

     

    (v)  the
      failure on the part of the Administrator to (i) deliver to the Indenture
      Trustee, the Administrative Agent and each Funding Agent the financial
      statements of PHH and its consolidated subsidiaries for the fiscal quarters
      ended March 31, 2006, June 30, 2006 and September 30, 2006 and the certificates
      required to be furnished together therewith pursuant to Section 8.3(d) on or
      prior to December 29, 2006 or such later date as may be agreed to in writing
      by
      the lenders party to the PHH Credit Agreement for delivery of such financial
      statements and certificates pursuant to Sections 5.1(b) and (c) of the PHH
      Credit Agreement or (ii) duly to observe or perform in any material respect
      any
      other covenants or agreements of the Administrator set forth in the Base
      Indenture or this Indenture Supplement, which failure continues unremedied
      for a
      period of 30 days after there shall have been given to the Administrator by
      the
      Indenture Trustee or the Administrator and the Indenture Trustee by any Series
      2006-2 Investor Noteholder, written notice specifying such default and requiring
      it to be remedied;

     

    then,
      in
      the case of any event described in clause (q) through (v) above, an Amortization
      Event will be deemed to have occurred with respect to the Series 2006-2 Investor
      Notes only, if after the applicable grace period, either the Indenture Trustee
      or the Series 2006-2 Required Investor Noteholders, declare that an Amortization
      Event has occurred with respect to the Series 2006-2 Investor Notes.
      In
      the
      case of any event described in clauses (a) through (p) above, an Amortization
      Event with respect to the Series 2006-2 Investor Notes will be deemed to have
      occurred without notice or other action on the part of the Indenture Trustee
      or
      the Series 2006-2 Investor Noteholders.

     

     

    
      
         

      

      
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    ARTICLE
      5  

     

    OPTIONAL
      PREPAYMENT

     

    The
      Issuer shall have the option to prepay all outstanding Series 2006-2 Investor
      Notes by paying an amount equal to the Series 2006-2 Prepayment Amount. The
      Issuer shall give the Indenture Trustee and the Administrative Agent at least
      ten Business Days’ prior written notice of the date on which the Issuer intends
      to exercise such option to prepay (the “Prepayment
      Date”).
      Upon
      receipt of any notice of a Prepayment Date from the Issuer, the Administrative
      Agent shall promptly notify the Funding Agent with respect to each Purchaser
      Group thereof. Not later than 11:00 A.M., New York City time, on such Prepayment
      Date, the Issuer shall deposit in the Series 2006-2 Distribution Account an
      amount equal to the Series 2006-2 Prepayment Amount in immediately available
      funds. The funds deposited into the Series 2006-2 Distribution Account will
      be
      paid by the Indenture Trustee to the Administrative Agent, for the account
      of
      the Series 2006-2 Investor Noteholders, on such Prepayment Date. Upon the
      receipt of funds from the Indenture Trustee on any Prepayment Date, the
      Administrative Agent shall pay to each Funding Agent with respect to a
      Purchaser, the portion of the Series 2006-2 Prepayment Amount owing to such
      Purchaser.

     

    ARTICLE
      6  

     

    SERVICING
      AND ADMINISTRATOR FEES

     

    SECTION
      6.1.  Servicing
      Fee

     

     A
      periodic servicing fee (the “Series
      2006-2 Basic Servicing Fee”)
      shall
      be payable to the Servicer on each Payment Date for the preceding Monthly Period
      in an amount equal to the product of (a) 0.215% per annum (the “Series
      Servicing Fee Percentage”)
      times
      (b) the daily average of the Series 2006-2 Allocated Adjusted Aggregate Unit
      Balance for such Monthly Period times (c) the number of days in such Monthly
      Period divided
      by 365
      (or 366, as applicable) days; provided,
      however
      that if
      VMS is not the Servicer, the servicing fee payable to the Servicer on each
      Payment Date hereunder may be increased such that the sum of the Series 2006-2
      Basic Servicing Fee and the additional servicing fee payable to the Servicer
      hereunder (the “Series
      2006-2 Supplemental Servicing Fee”)
      for
      each Monthly Period equals 110% of the costs to the successor Servicer of
      servicing the portion of the Lease SUBI Portfolio allocated to Series 2006-2
      during such Monthly Period. For this purpose, the portion of the Lease SUBI
      Portfolio allocated to Series 2006-2 for each Monthly Period shall equal the
      average Series 2006-2 Invested Percentage during such Monthly Period. The Series
      2006-2 Basic Servicing Fee and any Series 2006-2 Supplemental Servicing Fee
      shall be payable to the Servicer on each Payment Date pursuant to Section
      5A.4(c).

     

    SECTION
      6.2.  Administrator
      Fee

     

    A
      periodic fee (the “Series
      2006-2 Administrator Fee”)
      shall
      be payable to the Administrator on each Payment Date for the preceding Monthly
      Period in an amount equal to the product of (a) 0.01% per annum times (b) the
      daily average of the Series 2006-2 Allocated Adjusted Aggregate Unit Balance
      for
      such Monthly Period times (c) the number of days in such Monthly Period
divided
      by 365
      (or 366, as 

     

     

    
      
         

      

      
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    applicable)
      days. The Series 2006-2 Administrator Fee shall be payable to the Administrator
      on each Payment Date pursuant to Section
      5A.4(c)(viii).

     

    ARTICLE
      7  

     

    CHANGE
      IN CIRCUMSTANCES

     

    SECTION
      7.1.  Illegality

     

     Notwithstanding
      any other provision herein, if any Change in Law shall make it unlawful for
      any
      Purchaser Group to make or maintain any portion of the Purchaser Group Invested
      Amount with respect to such Purchaser Group allocated to a Eurodollar Tranche
      and such Purchaser Group shall notify in writing the Administrative Agent,
      the
      Funding Agent with respect to such Purchaser Group, the Indenture Trustee and
      the Issuer, then the portion of such Purchaser Group Invested Amount allocated
      to Eurodollar Tranches shall thereafter be calculated by reference to the
      Alternate Base Rate. If any such change in the method of calculating interest
      occurs on a day which is not the last day of the Eurodollar Period with respect
      to any Eurodollar Tranche, the Issuer shall pay to such Purchaser Group the
      amounts, if any, as may be required pursuant to Section
      7.4.

     

    SECTION
      7.2.  Increased
      Costs.

     

    (a)  
      If any
      Change in Law (except with respect to Taxes which shall be governed by
Section
      7.3)
      shall:

     

    (i)  
      impose,
      modify or deem applicable any reserve, special deposit or similar requirement
      against assets of, deposits with or for the account of, or credit extended
      by,
      any Affected Party (except any such reserve requirement reflected in the
      Adjusted LIBO Rate); or

     

    (ii)  
      impose
      on any Affected Party or the London interbank market any other condition
      affecting the Transaction Documents or the funding of Eurodollar Tranches by
      such Affected Party;

     

    and
      the
      result of any of the foregoing shall be to increase the cost to such Affected
      Party of making, converting into, continuing or maintaining Eurodollar Tranches
      (or maintaining its obligation to do so) or to reduce any amount received or
      receivable by such Affected Party hereunder or in connection herewith (whether
      principal, interest or otherwise), then the Issuer will pay to such Affected
      Party such additional amount or amounts as will compensate such Affected Party
      for such additional costs incurred or reduction suffered.

     

    (b)  
      If any
      Affected Party determines that any Change in Law regarding capital requirements
      has or would have the effect of reducing the rate of return on such Affected
      Party’s capital or the capital of any corporation controlling such Affected
      Party as a consequence of its obligations hereunder to a level below that which
      such Affected Party or such corporation could have achieved but for such Change
      in Law (taking into consideration such Affected Party’s or such corporation’s
      policies with respect to capital adequacy), then from time to time, the Issuer
      shall pay to such Affected Party such additional amount or amounts as will
      compensate such Affected Party for any such reduction suffered.

     

     

    
      
         

      

      
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    (c)  
      A
      certificate of an Affected Party setting forth the amount or amounts necessary
      to compensate such Affected Party as specified in subsections (a) and (b) of
      this Section 7.2
      shall be
      delivered to the Issuer (with a copy to the Administrative Agent and the Funding
      Agent with respect to such Affected Party) and shall be conclusive absent
      manifest error. The agreements in this Section shall survive the termination
      of
      this Indenture Supplement and the Base Indenture and the payment of all amounts
      payable hereunder and thereunder.

     

    (d)  
      Failure
      or delay on the part of an Affected Party to demand compensation pursuant to
      this Section 7.2
      shall
      not constitute a waiver of such Affected Party’s right to demand such
      compensation; provided
      that the
      Issuer shall not be required to compensate any Affected Party pursuant to this
      Section 7.2
      for any
      increased costs or reductions incurred more than 270 days prior to the date
      that
      such Affected Party notifies the Issuer of the Change in Law giving rise to
      such
      increased costs or reductions and of such Affected Party’s intention to claim
      compensation therefor; provided further
      that, if
      the Change in Law giving rise to such increased costs or reductions is
      retroactive, then the 270-day period referred to above shall be extended to
      include the period of retroactive effect thereof.

     

    SECTION
      7.3.  Taxes.

     

    (a)  
      Any and
      all payments by or on account of any obligation of the Issuer hereunder shall
      be
      made free and clear of and without deduction for any Indemnified Taxes or Other
      Taxes; provided
      that if
      the Issuer shall be required to deduct any Indemnified Taxes or Other Taxes
      from
      such payments, then (i) subject to Section
      7.3(c)
      below,
      the sum payable shall be increased as necessary so that after making all
      required deductions (including deductions applicable to additional sums payable
      under this Section 7.3)
      the
      recipient receives an amount equal to the sum that it would have received had
      no
      such deductions been made, (ii) the Issuer shall make such deductions and (iii)
      the Issuer shall pay the full amount deducted to the relevant Governmental
      Authority in accordance with applicable law. 

     

    (b)  
      In
      addition, the Issuer shall pay any Other Taxes to the relevant Governmental
      Authority in accordance with applicable law.

     

    (c)  
      The
      Issuer shall indemnify the Administrative Agent, each Funding Agent, each
      Program Support Provider and each member of each Purchaser Group within the
      later of 10 days after written demand therefor and the Payment Date next
      following such demand for the full amount of any Indemnified Taxes or Other
      Taxes paid by the Administrative Agent, such Funding Agent, such Program Support
      Provider or such member of such Purchaser Group on or with respect to any
      payment by or on account of any obligation of the Issuer hereunder or under
      any
      other Transaction Document (including Indemnified Taxes or Other Taxes imposed
      or asserted on or attributable to amounts payable under this Section 7.3)
      and any
      penalties, interest and reasonable expenses arising therefrom or with respect
      thereto, whether or not such Indemnified Taxes or Other Taxes were correctly
      or
      legally imposed or asserted by the relevant Governmental Authority; provided
      that no
      Person shall be indemnified pursuant to this Section
      7.3(c)
      or
      required to pay additional amounts under the proviso of Section
      7.3(a)
      to the
      extent that the reason for such indemnification results from the failure by
      such
      Person to comply with the provisions of Section
      7.3(e)
      or
(g).
      A
      certificate as to the amount of such payment or liability delivered to the
      Issuer by the Administrative Agent, any Funding Agent, any Program Support
      

     

     

    
      
         

      

      
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    Provider
      or any member of any Purchaser Group shall be conclusive absent manifest error.
      Any payments made by the Issuer pursuant to this Section
      7.3
      shall be
      made solely from funds available therefor pursuant to Section
      5A.4(c),
      shall
      be non-recourse other than with respect to such funds, and shall not constitute
      a claim against the Issuer to the extent that insufficient funds exist to make
      such payment. The agreements in this Section shall survive the termination
      of
      this Indenture Supplement and the Base Indenture and the payment of all amounts
      payable hereunder and thereunder.

     

    (d)  
      As soon
      as practicable after any payment of Indemnified Taxes or Other Taxes by the
      Issuer to a Governmental Authority, the Issuer shall deliver to the
      Administrative Agent the original or a certified copy of a receipt issued by
      such Governmental Authority evidencing such payment, a copy of the return
      reporting such payment or other evidence of such payment reasonably satisfactory
      to the Administrative Agent. 

     

    (e)  
      The
      Administrative Agent, each Funding Agent, each member of each Purchaser Group
      and each Program Support Provider, if entitled to an exemption from or reduction
      of an Indemnified Tax or Other Tax with respect to payments made under this
      Indenture Supplement and the Base Indenture shall (to the extent legally able
      to
      do so) deliver to the Issuer (with a copy to the Administrative Agent) such
      properly completed and executed documentation prescribed by applicable law
      and
      reasonably requested by the Issuer on the later of (i) 30 Business Days after
      such request is made and the applicable forms are provided to the Administrative
      Agent, such Funding Agent, such member of such Purchaser Group or such Program
      Support Provider or (ii) 30 Business Days before prescribed by applicable law
      as
      will permit such payments to be made without withholding or with an exemption
      from or reduction of Indemnified Taxes or Other Taxes.

     

    (f)  
      If the
      Administrative Agent, any Funding Agent, any Program Support Provider or any
      member of a Purchaser Group receives a refund solely in respect of Indemnified
      Taxes or Other Taxes, it shall pay over such refund to the Issuer to the extent
      that it has already received indemnity payments or additional amounts pursuant
      to this Section
      7.3
      with
      respect to such Indemnified Taxes or Other Taxes giving rise to the refund,
      net
      of all out-of-pocket expenses and without interest (other than interest paid
      by
      the relevant Governmental Authority with respect to such refund); provided,
      however,
      that
      the Issuer shall, upon request of the Administrative Agent, such Funding Agent,
      such Program Support Provider or such member of a Purchaser Group, repay such
      refund (plus interest or other charges imposed by the relevant Governmental
      Authority) to the Administrative Agent, such Funding Agent, such Program Support
      Provider or such member of a Purchaser Group if the Administrative Agent, such
      Funding Agent, such Program Support Provider or such member of a Purchaser
      Group
      is required to repay such refund to such Governmental Authority. Nothing
      contained herein shall require the Administrative Agent, any Funding Agent,
      any
      Program Support Provider or any member of a Purchaser Group to make its tax
      returns (or any other information relating to its taxes which it deems
      confidential) available to the Issuer or any other Person.

     

    (g)  
      The
      Administrative Agent, each Funding Agent, each Program Support Provider and
      each
      member of each Purchaser Group (other than any such entity which is a domestic
      corporation) shall:

     

     

    
      
         

      

      
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    (i)  upon
      or
      prior to becoming a party hereto, deliver to the Issuer and the Administrative
      Agent two (2) duly completed copies of IRS Form W-8BEN, W-8ECI or W-9, or
      successor applicable forms, as the case may be, establishing a complete
      exemption from withholding of United States federal income taxes or backup
      withholding taxes with respect to payments under the Series 2006-2 Notes and
      this Indenture Supplement;

     

    (ii)  deliver
      to the Issuer and the Administrative Agent two (2) further copies of any such
      form or certification establishing a complete exemption from withholding of
      United States federal income taxes or backup withholding taxes with respect
      to
      payments under the Series 2006-2 Notes and this Indenture Supplement on or
      before the date that any such form or certification expires or becomes obsolete
      and after the occurrence of any event requiring a change in the most recent
      form
      previously delivered by it to the Issuer; and

     

    (iii)  obtain
      such extensions of time for filing and completing such forms or certifications
      as may reasonably be requested by the Issuer and the Administrative
      Agent;

     

    unless,
      in any such case, any change in treaty, law or regulation has occurred after
      the
      Series 2006-2 Closing Date (or, if later, the date the Administrative Agent,
      such Funding Agent, such Program Support Provider or such member of such
      Purchaser Group becomes an indemnified party hereunder) and prior to the date
      on
      which any such delivery would otherwise be required which renders the relevant
      form inapplicable or which would prevent the Administrative Agent, such Funding
      Agent, such Program Support Provider or such member of such Purchaser Group
      from
      duly completing and delivering the relevant form with respect to it, and the
      Administrative Agent, such Funding Agent, such Program Support Provider or
      such
      member of such Purchaser Group so advises the Issuer and the Administrative
      Agent.

     

    (h)  If
      a
      beneficial or equity owner of the Administrative Agent, a Funding Agent, a
      Program Support Provider or a member of a Purchaser Group (instead of the
      Administrative Agent, the Funding Agent, the Program Support Provider or the
      member of the Purchaser Group itself) is required under United States federal
      income tax law or the terms of a relevant treaty to provide IRS Form W-8BEN,
      W-8ECI or W-9, or any successor applicable forms, as the case may be, in order
      to claim an exemption from withholding of United States federal income taxes
      or
      backup withholding taxes, then each such beneficial owner or equity owner shall
      be considered to be the Administrative Agent, a Funding Agent, a Program Support
      Provider or a member of a Purchaser Group for purposes of Section
      7.3 (g).

     

    SECTION
      7.4.   Break
      Funding Payments.
      The
      Issuer agrees to indemnify each Purchaser Group and to hold each Purchaser
      Group
      harmless from any loss or expense which such Purchaser Group may sustain or
      incur as a consequence of (a) default by the Issuer in making a borrowing of,
      conversion into or continuation of a CP Tranche or a Eurodollar Tranche after
      the Issuer has given irrevocable notice requesting the same in accordance with
      the provisions of this Indenture Supplement, or (b) default by the Issuer in
      making any prepayment in connection with a Decrease after the Issuer has given
      irrevocable notice thereof in accordance with the provisions of Section
      2.5
      or (c)
      the making of a prepayment of a CP Tranche or a Eurodollar Tranche (including,
      without limitation, any Decrease) prior to the termination of the 

     

     

    
      
         

      

      
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    CP
      Rate
      Period for such CP Tranche or the Eurodollar Period for such Eurodollar Tranche,
      as the case may be. Such indemnification shall include an amount determined
      by
      the Funding Agent with respect to such Purchaser Group and shall equal (a)
      in
      the case of losses or expenses associated with a CP Tranche or a Eurodollar
      Tranche, either (x) the excess, if any, of (i) such Purchaser Group’s cost of
      funding the amount so prepaid or not so borrowed, converted or continued, for
      the period from the date of such prepayment or of such failure to borrow,
      convert or continue to the last day of the CP Rate Period or the Eurodollar
      Period (or in the case of a failure to borrow, convert or continue, the CP
      Rate
      Period or the Eurodollar Period that would have commenced on the date of such
      prepayment or of such failure), as the case may be, over (ii) the amount of
      interest earned by such Purchaser Group upon redeployment of an amount of funds
      equal to the amount prepaid or not borrowed, converted or continued for a
      comparable period or (y) if such Purchaser Group is able to terminate the
      funding source before its scheduled maturity, any costs associated with such
      termination and (b) in the case of losses or expenses incurred by a Pooled
      Funding CP Conduit Purchaser, the losses and expenses incurred by such Pooled
      Funding CP Conduit Purchaser in connection with the liquidation or reemployment
      of deposits or other funds acquired by such Pooled Funding CP Conduit Purchaser
      as a result of the failure to make a borrowing, a default in making a Decrease
      or the making of a Decrease in an amount or on a date not contained in a notice
      of Decrease; provided that any payments made by the Issuer pursuant to this
      subsection shall be made solely from funds available therefor pursuant to
Section
      5A.4(c),
      shall
      be non-recourse other than with respect to such funds, and shall not constitute
      a claim against the Issuer to the extent that such funds are insufficient to
      make such payment. This covenant shall survive the termination of this Indenture
      Supplement and the Base Indenture and the payment of all amounts payable
      hereunder and thereunder. A certificate as to any additional amounts payable
      pursuant to the foregoing sentence submitted by any Funding Agent on behalf
      of a
      Purchaser Group to the Issuer shall be conclusive absent manifest
      error.

     

    SECTION
      7.5.   Alternate
      Rate of Interest

     

    .
      If
      prior to the commencement of any Eurodollar Period:

     

    (a)  the
      Administrative Agent determines (which determination shall be conclusive absent
      manifest error) that adequate and reasonable means do not exist for ascertaining
      the Adjusted LIBO Rate for such Eurodollar Period, or

     

    (b)  the
      Administrative Agent is advised by any Purchaser Group that the Adjusted LIBO
      Rate for such Eurodollar Period will not adequately and fairly reflect the
      cost
      to such Purchaser Group of making or maintaining the Eurodollar Tranches during
      such Eurodollar Period,

     

    then
      the
      Administrative Agent shall promptly give telecopy or telephonic notice thereof
      to the Issuer and the Indenture Trustee, whereupon until the Administrative
      Agent notifies the Issuer and the Indenture Trustee that the circumstances
      giving rise to such notice no longer exist, the Available APA Bank Funding
      Amount with respect to any Purchaser Group (in the case of clause (a) above)
      or
      with respect to such Purchaser Group (in the case of clause (b) above) shall
      not
      be allocated to any Eurodollar Tranche.

     

    SECTION
      7.6.   Mitigation
      Obligations.
      If an
      Affected Party requests compensation under Section
      7.2,
      or if
      the Issuer is required to pay any additional amount to any 

     

     

    
      
         

      

      
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    Purchaser
      Group or any Governmental Authority for the account of any Purchaser Group
      pursuant to Section
      7.3,
      then,
      upon written notice from the Issuer, such Affected Party or Purchaser Group,
      as
      the case may be, shall use commercially reasonable efforts to designate a
      different lending office for funding or booking its obligations hereunder or
      to
      assign its rights and obligations hereunder to another of its offices, branches
      or affiliates, which pays a price for such assignment which is acceptable to
      such Purchaser Group and its assignee, in the judgment of such Affected Party
      or
      Purchaser Group, such designation or assignment (i) would eliminate or reduce
      amounts payable pursuant to Section
      7.2
      or
7.3,
      as the
      case may be, in the future and (ii) would not subject such Affected Party or
      Purchaser Group to any unreimbursed cost or expense and would not otherwise
      be
      disadvantageous to such Affected Party or Purchaser Group. The Issuer hereby
      agrees to pay all reasonable costs and expenses incurred by such Affected Party
      or Purchaser Group in connection with any such designation or
      assignment.

     

    ARTICLE
      8  

     

    REPRESENTATIONS
      AND WARRANTIES, COVENANTS

     

    SECTION
      8.1.   Representations
      and Warranties of the Issuer and VMS.
      The
      Issuer and VMS each hereby represents and warrants to the Indenture Trustee,
      the
      Administrative Agent, each Funding Agent, each CP Conduit Purchaser and each
      APA
      Bank that:

     

    (a)  
      each and
      every of their respective representations and warranties contained in the
      Transaction Documents is true and correct as of the Series 2006-2 Closing Date,
      as of the Series 2006-2 Initial Funding Date and as of the date of each
      Increase; and

     

    (b)  
      as of
      the Series 2006-2 Closing Date, they have not engaged, in connection with the
      offering of the Series 2006-2 Investor Notes, in any form of general
      solicitation or general advertising within the meaning of Rule 502(c) under
      the
      Securities Act.

     

    SECTION
      8.2.   Covenants
      of the Issuer and VMS.
      The
      Issuer and VMS hereby agree, in addition to their obligations hereunder,
      that:

     

    (a)  
      they
      shall observe in all material respects each and every of their respective
      covenants (both affirmative and negative) contained in the Base Indenture and
      all other Transaction Documents to which each is a party;

     

    (b)  they
      shall afford each Funding Agent with respect to a Purchaser Group, the Indenture
      Trustee or any representatives of any such Funding Agent or the Indenture
      Trustee access to all records relating to the Loans, the SUBI Certificates,
      the
      Sold Units and the Fleet Receivables at any reasonable time during regular
      business hours, upon reasonable prior notice (and without prior notice if an
      Amortization Event has occurred), for purposes of inspection and shall permit
      such Funding Agent, the Indenture Trustee or any representative of such Funding
      Agent or the Indenture Trustee to visit any of the Issuer’s or VMS’s, as the
      case may be, offices or properties during regular business hours and as often
      as
      may reasonably be desired to discuss the business, operations, properties,
      financial and other conditions of the Issuer or VMS with 

     

     

    
      
         

      

      
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    their
      respective officers and employees and with their independent certified public
      accountants; and

     

    (c)  
      they
      shall not take any action, nor permit Holdings, to take any action, requiring
      the satisfaction of the Rating Agency Condition pursuant to any Transaction
      Document without the prior written consent of the Series 2006-2 Required
      Investor Noteholders.

     

    SECTION
      8.3.   Covenants
      of the Administrator

     

    .
      The
      Administrator hereby agrees that:

     

    (a)  
      it shall
      provide to the Indenture Trustee, the Administrative Agent and each Funding
      Agent, on each Determination Date, a Monthly Settlement Statement, substantially
      in the form of Exhibit C hereto, setting forth as of the last day of the most
      recent Monthly Period and for such Monthly Period the information set forth
      therein; 

     

    (b)  
      it shall
      provide to the Administrative Agent simultaneously with delivery to the
      Indenture Trustee, all reports, notices, certificates, statements and other
      documents required to be delivered to the Indenture Trustee pursuant to the
      Base
      Indenture and the other Transaction Documents, and furnish to the Administrative
      Agent promptly after receipt thereof a copy of each notice, demand or other
      material communication (excluding routine communications) received by or on
      behalf of the Issuer or the Administrator with respect to the Transaction
      Documents. The Administrative Agent shall distribute to the Funding Agents
      copies of all reports, notices, certificates, statements and other documents
      delivered to it pursuant to this Section
      8.3(b);
      

     

    (c)  it
      shall
      provide to the Indenture Trustee, the Administrative Agent and each Funding
      Agent, as soon as is practicable, but in any event within 100 days after the
      end
      of each fiscal year of PHH, commencing with fiscal year 2006, (i) either (A)
      consolidated statements of income (or operations) and consolidated statements
      of
      cash flows and changes in stockholders’ equity of PHH and its consolidated
      subsidiaries for such year and the related consolidated balance sheets as at
      the
      end of such year, or (B) the Form 10-K filed by PHH with the Securities and
      Exchange Commission and (ii) if not included in such Form 10-K, an opinion
      of
      independent certified public accountants of recognized national standing, which
      opinion shall state that said consolidated financial statements fairly present
      the consolidated financial position and results of operations of PHH and its
      consolidated subsidiaries as at the end of, and for, such fiscal year and that
      such financial statements were prepared in accordance with GAAP applied
      consistently throughout the periods reflected therein and with prior periods;
      

     

    (d)  it
      shall
      provide to the Indenture Trustee, the Administrative Agent and each Funding
      Agent, as soon as is practicable, but in any event within 60 days after the
      end
      of each of the first three fiscal quarters of each fiscal year, commencing
      with
      the fiscal quarter ending March 31, 2006, either (i) the Form 10-Q filed by
      PHH
      with the Securities and Exchange Commission or (ii) the unaudited consolidated
      balance sheet of PHH and its consolidated subsidiaries, as at the end of such
      fiscal quarter, and the related unaudited statements of income and cash flows
      for such quarter and for the period from the beginning of the then current
      fiscal year to the end of such fiscal quarter and the corresponding figures
      as
      of the end of the preceding fiscal year, and for the corresponding period in
      the
      preceding fiscal year, in each case, together with 

     

     

    
      
         

      

      
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    a
      certificate signed by the chief financial officer, the chief accounting officer
      or a vice president responsible for financial administration of PHH to the
      effect that such financial statements, while not examined by independent public
      accountants, reflect, in his opinion and in the opinion of PHH, all adjustments
      necessary to present fairly the financial position of PHH and its consolidated
      subsidiaries, as the case may be, as at the end of the fiscal quarter and the
      results of their operations for the quarter then ended in conformity with GAAP
      consistently applied, subject only to year end and audit adjustments and to
      the
      absence of footnote disclosure; provided, however, that the Administrator shall
      not be required to provide the financial statements for the fiscal quarters
      ended March 31, 2006, June 30, 2006 and September 30, 2006 and the certificates
      required to be furnished together therewith prior to December 29,
      2006;

     

    (e)  it
      shall
      provide to the Indenture Trustee, the Administrative Agent and each Purchaser
      Group, no later than the Scheduled Expiry Date with respect to such Purchaser
      Group, a letter of independent certified public accountants of recognized
      national standing, addressed to the members of such Purchaser Group and dated
      a
      date that is within the six months immediately preceding such Scheduled Expiry
      Date, in form and substance satisfactory to the Administrative Agent, concerning
      the agreed-upon procedures performed in respect of the Origination Trust Assets
      allocated to the Lease SUBI Portfolio described on Exhibit D
      hereto;

     

    (f)  it
      shall
      provide to the Indenture Trustee, the Administrative Agent and each Purchaser
      Group, no later than the Scheduled Expiry Date with respect to such Purchaser
      Group, a letter of independent certified public accountants of recognized
      national standing, addressed to the members of such Purchaser Group and dated
      a
      date that is within the six months immediately preceding such Scheduled Expiry
      Date, in form and substance satisfactory to the Administrative Agent, concerning
      the agreed-upon procedures performed in respect of the characteristics of the
      Leases allocated to the Lease SUBI Portfolio described on Exhibit
      E;

     

    (g)  on
      or
      prior to any Series Closing Date, it shall provide to each Funding Agent a
      copy
      of the Indenture Supplement relating to the Series of Investor Notes being
      issued on such Series Closing Date;

     

    (h)  it
      shall
      provide each Funding Agent with prompt written notice of (i) the downgrade
      by
      any Rating Agency of the rating assigned by such Rating Agency to any Series
      of
      Outstanding Investor Notes or the determination by any Rating Agency to put
      the
      rating assigned by such Rating Agency to any Series of Outstanding Investor
      Notes on a watch list and (ii) the occurrence of an Amortization Event or
      Potential Amortization Event with respect to any Series of Outstanding Investor
      Notes; and

     

    (i)  
      it shall
      provide to each Funding Agent copies of all reports relating to the Series
      2006-2 Investor Notes delivered to the Rating Agencies.

     

    SECTION
      8.4.   Obligations
      Unaffected.
      The
      obligations of the Issuer and the Administrator to the Funding Agent and the
      Purchaser Groups under this Indenture Supplement shall not be affected by reason
      of any invalidity, illegality or irregularity of any of the Loans, the SUBI
      Certificates, the Sold Units or the Fleet Receivables.

     

     

    
      
         

      

      
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    ARTICLE
      9  

     

    CONDITIONS
      PRECEDENT

     

    SECTION
      9.1.   Conditions
      Precedent to Effectiveness of Indenture Supplement

     

    .
      The
      Original Series 2006-2 Indenture Supplement became effective on the date (the
      “Effective Date”) on which the following conditions precedent were
      satisfied:

     

    (a)  Documents.
      The
      Administrative Agent shall have received an original copy for each CP Conduit
      Purchaser and the Funding Agent and the APA Banks with respect to such CP
      Conduit Purchaser, each executed and delivered in form and substance
      satisfactory to it of (i) the Base Indenture, executed by a duly authorized
      officer of each of the Issuer and the Indenture Trustee, (ii) the Loan
      Agreement, executed by a duly authorized officer of each of the Issuer and
      Holdings, (iii) this Indenture Supplement, executed by a duly authorized officer
      of each of the Issuer, the Administrator, the Indenture Trustee, the
      Administrative Agent, the Funding Agents, the CP Conduit Purchasers and the
      APA
      Banks, (iv) the Administration Agreement, executed by a duly authorized officer
      of each of the Issuer, Holdings, the Indenture Trustee and the Administrator,
      (v) each of the Origination Trust Documents, executed by duly authorized
      officers of each of the parties thereto and (vi) any other Transaction Documents
      to be executed in connection with Series 2006-2, each duly executed by the
      parties thereto.

     

    (b)  Corporate
      Documents; Proceedings of the Issuer, the Administrator, SPV,
      Holdings, the
      Origination Trust, PHH, the Intermediary and the Servicer.
      The
      Administrative Agent shall have received, with a copy for each CP Conduit
      Purchaser and the Funding Agent and the APA Banks with respect to such CP
      Conduit Purchaser, from the Issuer, the Administrator, SPV, Holdings, PHH,
      PHH
      Sub 1, PHH Sub 2, the Intermediary, the Origination Trust, VMS and the Servicer
      true and complete copies of:

     

    (i)  to
      the
      extent applicable, the certificate of incorporation, certificate of trust or
      certificate of formation, including all amendments thereto, of such Person,
      certified as of a recent date by the Secretary of State or other appropriate
      authority of the state of incorporation or organization, as the case may be,
      and
      a certificate of compliance, of status or of good standing, as and to the extent
      applicable, of each such Person as of a recent date, from the Secretary of
      State
      or other appropriate authority of such jurisdiction;

     

    (ii)  a
      certificate of the Secretary or an Assistant Secretary of each of the Issuer,
      the Administrator, SPV, Holdings, PHH, PHH Sub 1, PHH Sub 2, the Intermediary,
      the Origination Trust and VMS, dated the Effective Date and certifying (A)
      that
      attached thereto is a true and complete copy of the limited liability company
      agreement or by-laws, as applicable, of such Person, as in effect on the
      Effective Date and at all times since a date prior to the date of the
      resolutions described in clause (B) below, (B) that attached thereto is a true
      and complete copy of the resolutions, in form and substance reasonably
      satisfactory to the Funding Agent, of the managers or directors of such Person
      or committees thereof authorizing the execution, delivery and performance of
      the
      Transaction 

     

     

    
      
         

      

      
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    Documents
      to which it is a party and the transactions contemplated thereby, and that
      such
      resolutions have not been amended, modified, revoked or rescinded and are in
      full force and effect, (C) that the certificate of formation of such Person
      has
      not been amended since the date of the last amendment thereto shown on the
      certificate of good standing (or its equivalent) furnished pursuant to clause
      (i) above and (D) as to the incumbency and specimen signature of each officer
      or
      authorized signatory executing any Transaction Documents or any other document
      delivered in connection herewith or therewith on behalf of such Person;

     

    (iii)  a
      certificate of the Secretary or an Assistant Secretary of each of the Common
      Member, PHH Sub 1 and the Delaware Trustee, dated the Effective Date and
      certifying as to the incumbency and specimen signature of each officer or
      authorized signatory executing any Transaction Documents or any other document
      delivered in connection herewith or therewith on behalf of such Person;
      and

     

    (iv)  a
      certificate of another officer as to the incumbency and specimen signature
      of
      the Secretary or Assistant Secretary executing the certificate pursuant to
      clause (ii) or (iii) above.

     

    (c)  Good
      Standing Certificates.
      The
      Administrative Agent shall have received copies of certificates of compliance,
      of status or of good standing, dated as of a recent date, from the Secretary
      of
      State or other appropriate authority of such jurisdiction, with respect to
      the
      Issuer, the Administrator, SPV, Holdings, and the Origination Trust in each
      State where the ownership, lease or operation of property or the conduct of
      business requires it to qualify as a foreign corporation, except where the
      failure to so qualify would not have a material adverse effect on the business,
      operations, properties or condition (financial or otherwise) of the Issuer,
      the
      Administrator, SPV, Holdings, or the Origination Trust, as the case may
      be.

     

    (d)  Consents,
      Licenses, Approvals, Etc.
      The
      Administrative Agent shall have received, with a counterpart for each CP Conduit
      Purchaser and the Funding Agent and the APA Banks with respect to such CP
      Conduit Purchaser, certificates dated the date hereof of an Authorized Officer
      of the Issuer, the Administrator, SPV, Holdings, the Origination Trust and
      the
      Servicer either (i) attaching copies of all material consents, licenses and
      approvals required in connection with the execution, delivery and performance
      by
      the Issuer, the Administrator, SPV, Holdings, the Origination Trust and the
      Servicer of the Transaction Documents to which it is a party and the validity
      and enforceability of the Transaction Documents to which it is a party against
      the Issuer, the Administrator, SPV, Holdings, the Origination Trust and the
      Servicer, respectively, and such consents, licenses and approvals shall be
      in
      full force and effect or (ii) stating that no such consents, licenses or
      approvals are so required.

     

    (e)  No
      Litigation.
      The
      Administrative Agent shall have received confirmation that there is no pending
      or, to their knowledge after due inquiry, threatened action or proceeding
      affecting the Issuer, the Administrator, SPV, Holdings, the Origination Trust,
      the Servicer, PHH or any of its Subsidiaries before any Governmental Authority
      that could reasonably be expected to have a Material Adverse
      Effect.

     

     

    
      
         

      

      
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    (f)  Lien
      Searches.
      The
      Administrative Agent shall have received a written search report listing all
      effective financing statements that name VMS, the Origination Trust, Holdings,
      SPV or the Issuer as debtor or assignor and that are filed in the jurisdictions
      in which filings were made pursuant to paragraph (g) below and in any other
      jurisdictions that the Administrative Agent determines are necessary or
      appropriate, together with copies of such financing statements (none of which,
      except for those described in paragraph (g) below shall cover any portion of
      the
      Series 2006-2 Collateral), and tax and judgment lien searches showing no such
      liens that are not permitted by the Transaction Documents.

     

    (g)  UCC
      Certificate.
      The
      Administrative Agent shall have received from each of VMS, the Origination
      Trust, Holdings and the Issuer a certificate, substantially in the form of
      Exhibit F hereto, completed in a manner satisfactory to the Administrative
      Agent, duly executed by an Authorized Officer of each of VMS, the Origination
      Trust, Holdings and the Issuer and dated the Series 2006-2 Closing
      Date.

     

    (h)  Filings,
      Registrations and Recordings.
      The
      SUBI Certificates shall have been registered in the name of the Issuer and
      delivered to the Indenture Trustee, endorsed in blank, and any documents
      (including, without limitation, financing statements) required to be filed
      in
      order (i) to create, in favor of the Indenture Trustee, a perfected security
      interest in the Collateral with respect to which a security interest may be
      perfected by a filing under the UCC or other comparable statute, (ii) to create
      in favor of the Issuer a perfected security interest in the Loan Collateral
      with
      respect to which a security interest may be perfected by filing under the UCC
      or
      other comparable statute, (iii) to create in favor of the Origination Trust
      perfected ownership/security interest in the assets transferred thereto pursuant
      to the Contribution Agreement, (iv) to create in favor of Holdings a perfected
      ownership interest in the Fleet Receivables under the Receivables Purchase
      Agreement and (v) to create in favor of the Indenture Trustee a perfected
      security interest in the Series 2006-2 Collateral with respect to which a
      security interest may be perfected by a filing under the UCC or other comparable
      statute shall, in each case, have been properly prepared and executed for
      immediate filing in each office in each jurisdiction listed in the UCC
      Certificate referred to in paragraph (g) above, and such filings are the only
      filings required in order to perfect the security interest of the Indenture
      Trustee in the Series 2006-2 Collateral, the security interest of the Issuer
      in
      the Loan Collateral, the transfer of the Fleet Receivables, Leases, Vehicles
      and
      other assets to the Origination Trust pursuant to the Contribution Agreement,
      the transfer of the Fleet Receivables to Holdings pursuant to the Receivables
      Purchase Agreement or the transfer of the Series 2006-2 Collateral to the
      Indenture Trustee, as the case may be. The Administrative Agent shall have
      received evidence reasonably satisfactory to it of each such filing,
      registration or recordation and reasonably satisfactory evidence of the payment
      of any necessary fee, tax or expense relating thereto. 

     

    (i)  Legal
      Opinions.
      The
      Administrative Agent shall have received, with a counterpart addressed to each
      CP Conduit Purchaser and the Funding Agent, the Program Support Provider and
      the
      APA Banks with respect to such CP Conduit Purchaser and the Indenture Trustee,
      opinions of counsel to the Issuer, Holdings, SPV, the Origination Trust, the
      Intermediary and the Administrator, dated the Series 2006-2 Closing Date, as
      to
      due organization of the Origination Trust, Holdings, SPV, the Administrator,
      the
      Intermediary and the Issuer, bankruptcy (“true sale” and “non-substantive
      consolidation”), perfection and priority of security 

     

     

    
      
         

      

      
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    interests
      in the Series 2006-2 Collateral, creation and perfection of the security
      interests in the Loan Collateral, including the SUBI Certificates and the Sold
      Units and the Fleet Receivables, the characterization of the Series 2006-2
      Investor Notes as debt for U.S. federal income tax purposes, the
      characterization of the Issuer not as an association or a publicly traded
      partnership taxable as a corporation for U.S. federal income tax purposes and
      other matters, in each case, in form and substance acceptable to the addressees
      thereof and their respective counsel.

     

    (j)  Fees
      and Expenses.
      Each
      Funding Agent with respect to a Purchaser Group shall have received payment
      of
      all fees, out-of-pocket expenses and other amounts due and payable to the CP
      Conduit Purchaser or the APA Banks in such Purchaser Group on or before the
      Effective Date. 

     

    (k)  Establishment
      of Accounts.
      The
      Administrative Agent shall have received evidence reasonably satisfactory to
      it
      that the Collection Account (including the Series 2006-2 Subaccounts), the
      Series 2006-2 Reserve Account, the Series 2006-2 Yield Supplement Account and
      the Series 2006-2 Distribution Account shall have been established in accordance
      with the terms and provisions of the Indenture.

     

    (l)  Lease
      Rate Caps.
      The
      Indenture Trustee shall have received copies of the Lease Rate Caps duly
      executed by the parties thereto satisfying the requirements of Section
      5A.12
      on the
      Series 2006-2 Closing Date.

     

    (m)  Material
      Adverse Change.
      No
      material adverse change shall have occurred with respect to the business,
      operations, property or condition (financial or otherwise) of PHH and its
      Subsidiaries taken as a whole since September 30, 2005.

     

    (n)  Opinion.
      The
      Administrative Agent shall have received an opinion of counsel to the Indenture
      Trustee as to the due authorization, execution and delivery by the Indenture
      Trustee of this Indenture Supplement and the due execution, authentication
      and
      delivery by the Indenture Trustee of the Series 2006-2 Investor
      Notes.

     

    SECTION
      9.2.   Conditions
      Precedent to Effectiveness of Amendment and Restatement of Original Series
      2006-2 Indenture Supplement.
      This
      Indenture Supplement shall become effective on the date (the “Amendment
      Effective Date”) on which the following conditions precedent have been
      satisfied:

     

    (a)  Documents.
      The
      Administrative Agent shall have received an original of (i) this Indenture
      Supplement, executed by a duly authorized officer of each of the Issuer, the
      Administrator, the Indenture Trustee, the Administrative Agent, the Funding
      Agents, the CP Conduit Purchasers and the APA Banks and (ii) the Fee Letter,
      executed by a duly authorized officer of each of the Issuer, the Administrator,
      the Administrative Agent and the Funding Agents.

     

    (b)  Corporate
      Documents; Proceedings of the Issuer and the Administrator.
      The
      Administrative Agent shall have received, with a copy for each CP Conduit
      Purchaser and the Funding Agent and the APA Banks with respect to such CP
      Conduit Purchaser, from the Issuer and the Administrator true and complete
      copies of:

     

     

    
      
         

      

      
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    (i)  the
      certificate of formation, including all amendments thereto, of such Person,
      certified as of a recent date by the Secretary of State of the State of Delaware
      and a certificate of good standing of each such Person as of a recent date,
      from
      the Secretary of State of the State of Delaware;

     

    (ii)  a
      certificate of the Secretary or an Assistant Secretary of each of the Issuer
      and
      the Administrator, dated the Amendment Effective Date and certifying (A) that
      attached thereto is a true and complete copy of the limited liability company
      agreement of such Person, as in effect on the Amendment Effective Date and
      at
      all times since a date prior to the date of the resolutions described in clause
      (B) below, (B) that attached thereto is a true and complete copy of the
      resolutions, in form and substance reasonably satisfactory to the Funding Agent,
      of the managers of such Person or committees thereof authorizing the execution,
      delivery and performance of this Indenture Supplement and the transactions
      contemplated hereby, and that such resolutions have not been amended, modified,
      revoked or rescinded and are in full force and effect, (C) that the certificate
      of formation of such Person has not been amended since the date of the last
      amendment thereto shown on the certificate of good standing (or its equivalent)
      furnished pursuant to clause (i) above and (D) as to the incumbency and specimen
      signature of each officer or authorized signatory executing this Indenture
      Supplement or any other document delivered in connection herewith on behalf
      of
      such Person; and

     

    (iii)  a
      certificate of another officer as to the incumbency and specimen signature
      of
      the Secretary or Assistant Secretary executing the certificate pursuant to
      clause (ii) above.

     

    (c)  Good
      Standing Certificates.
      The
      Administrative Agent shall have received copies of certificates of good
      standing, dated as of a recent date, from the Secretary of State or other
      appropriate authority of such jurisdiction, with respect to the Issuer and
      the
      Administrator, in each State where the ownership, lease or operation of property
      or the conduct of business requires it to qualify as a foreign corporation,
      except where the failure to so qualify would not have a material adverse effect
      on the business, operations, properties or condition (financial or otherwise)
      of
      the Issuer or the Administrator, as the case may be.

     

    (d)  Legal
      Opinions.
      The
      Administrative Agent shall have received, with a counterpart addressed to each
      CP Conduit Purchaser and the Funding Agent, the Program Support Provider and
      the
      APA Banks with respect to such CP Conduit Purchaser and the Indenture Trustee,
      opinions of counsel to the Issuer and the Administrator, dated the Amendment
      Effective Date, as to due organization of the Administrator and the Issuer,
      the
      due authorization, execution and delivery of this Indenture Supplement by the
      Administrator and the Issuer and the enforceability of this Indenture Supplement
      against the Issuer and the Administrator, in each case, in form and substance
      acceptable to the addressees thereof and their respective counsel.

     

    (e)  Fees
      and Expenses.
      Each
      Funding Agent with respect to a Purchaser Group shall have received payment
      of
      all fees, out-of-pocket expenses and other amounts due 

     

     

    
      
         

      

      
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    and
      payable to the CP Conduit Purchaser or the APA Banks in such Purchaser Group
      on
      or before the Amendment Effective Date. 

     

    (f)  Representations
      and Warranties.
      All
      representations and warranties made by each of the Issuer, SPV, Holdings, the
      Origination Trust and the Servicer in each of the Transaction Documents to
      which
      it is a party shall be true and correct in all material respects on the
      Amendment Effective Date as if made as of the Amendment Effective
      Date.

     

    ARTICLE
      10  

     

    THE
      ADMINISTRATIVE AGENT

     

    SECTION
      10.1.   Appointment.
      Each of
      the CP Conduit Purchasers, the APA Banks and the Funding Agents hereby
      irrevocably designates and appoints the Administrative Agent as the agent of
      such Person under this Indenture Supplement and irrevocably authorizes the
      Administrative Agent, in such capacity, to take such action on its behalf under
      the provisions of this Indenture Supplement and to exercise such powers and
      perform such duties as are expressly delegated to the Administrative Agent
      by
      the terms of this Indenture Supplement, together with such other powers as
      are
      reasonably incidental thereto. Notwithstanding any provision to the contrary
      elsewhere in this Indenture Supplement, the Administrative Agent shall not
      have
      any duties or responsibilities except those expressly set forth herein, or
      any
      fiduciary relationship with any CP Conduit Purchaser, any APA Bank or any
      Funding Agent, and no implied covenants, functions, responsibilities, duties,
      obligations or liabilities shall be read into this Indenture Supplement or
      otherwise exist against the Administrative Agent. 

     

    SECTION
      10.2.   Delegation
      of Duties.
      The
      Administrative Agent may execute any of its duties under this Indenture
      Supplement by or through agents or attorneys-in-fact and shall be entitled
      to
      advice of counsel (who may be counsel for the Issuer or the Administrator),
      independent public accountants and other experts selected by it concerning
      all
      matters pertaining to such duties. The Administrative Agent shall not be
      responsible for the negligence or misconduct of any agents or attorneys in-fact
      selected by it with reasonable care.

     

    SECTION
      10.3.   Exculpatory
      Provisions.
      Neither
      the Administrative Agent nor any of its officers, directors, employees, agents,
      attorneys-in-fact or Affiliates shall be (i) liable for any action lawfully
      taken or omitted to be taken by it or such Person under or in connection with
      the Base Indenture or this Indenture Supplement (except
      to the extent that any of the foregoing are found by a final and nonappealable
      decision of a court of competent jurisdiction to have resulted from its or
      such
      Person’s own gross negligence or willful misconduct)
      or (ii)
      responsible in any manner to any of the CP Conduit Purchasers, the APA Banks
      or
      the Funding Agents for any recitals, statements, representations or warranties
      made by the Issuer, the Administrator or any officer thereof contained in this
      Indenture Supplement or any other Transaction Document or in any certificate,
      report, statement or other document referred to or provided for in, or received
      by the Administrative Agent under or in connection with, this Indenture
      Supplement or any other Transaction Document or for the value, validity,
      effectiveness, genuineness, enforceability or sufficiency of this Indenture
      Supplement, any other Transaction Document, the Loan Note, the SUBI
      Certificates, the Sold Units or the Fleet 

     

     

    
      
         

      

      
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    Receivables
      or for any failure of any of the Issuer, the Administrator, SPV, Holdings,
      the
      Origination Trust or the Servicer to perform its obligations hereunder or
      thereunder. The Administrative Agent shall not be under any obligation to any
      CP
      Conduit Purchaser, any APA Bank or any Funding Agent to ascertain or to inquire
      as to the observance or performance of any of the agreements contained in,
      or
      conditions of, this Indenture Supplement, any other Transaction Document, the
      Loan Note, the SUBI Certificates, the Sold Units or the Fleet Receivables or
      to
      inspect the properties, books or records of the Issuer, the Administrator,
      SPV,
      Holdings, the Origination Trust or the Servicer.

     

    SECTION
      10.4.   Reliance
      by Administrative Agent.
      The
      Administrative Agent shall be entitled to rely, and shall be fully protected
      in
      relying, upon any writing, resolution, notice, consent, certificate, affidavit,
      letter, telecopy, telex or teletype message, statement, order or other document
      or conversation believed by it to be genuine and correct and to have been
      signed, sent or made by the proper Person or Persons and upon advice and
      statements of legal counsel (including, without limitation, counsel to the
      Issuer or the Administrator), independent accountants and other experts selected
      by the Administrative Agent and shall not be liable for any action taken or
      omitted to be taken by it in good faith in accordance with the advice of such
      counsel, accountants or experts. The Administrative Agent may deem and treat the
      registered holder of any Series 2006-2 Investor Note as the owner thereof for
      all purposes unless a written notice of assignment, negotiation or transfer
      thereof shall have been filed with the Administrative Agent. The Administrative
      Agent shall be fully justified in failing or refusing to take any action under
      this Indenture Supplement or any other Transaction Document unless it shall
      first receive such advice or concurrence of the Funding Agents, on behalf of
      the
      Purchasers, as it deems appropriate or it shall first be indemnified to its
      satisfaction by the Funding Agents against any and all liability and expense
      which may be incurred by it by reason of taking or continuing to take any such
      action. The Administrative Agent shall in all cases be fully protected in
      acting, or in refraining from acting, under this Indenture Supplement and the
      other Transaction Documents in accordance with a request of the Series 2006-2
      Required Investor Noteholders (unless, in the case of any action relating to
      the
      giving of consent hereunder, the giving of such consent requires the consent
      of
      all Series 2006-2 Investor Noteholders), and such request and any action taken
      or failure to act pursuant thereto shall be binding upon all the CP Conduit
      Purchasers, the APA Banks and the Funding Agents.

     

    SECTION
      10.5.   Notice
      of
      Administrator Default or Amortization Event or Potential Amortization
      Event.
      The
      Administrative Agent shall not be deemed to have knowledge or notice of the
      occurrence of any Amortization Event or Potential Amortization Event, any Event
      of Default or Default, any Termination Event or any Servicer Default unless
      the
      Administrative Agent has received written notice from a CP Conduit Purchaser,
      an
      APA Bank, a Funding Agent, the Issuer, the Administrator, SPV, Holdings, the
      Origination Trust or the Servicer referring to the Agreement or this Indenture
      Supplement, describing such Amortization Event or Potential Amortization Event,
      Event of Default or Default, Termination Event or Servicer Default or and
      stating that such notice is a “notice of an Amortization Event or Potential
      Amortization Event,” “notice of an Event of Default or Default,” “notice of a
      Termination Event” or “notice of a Servicer Default”, as the case may be. In the
      event that the Administrative Agent receives such a notice, the Administrative
      Agent shall give notice thereof to the Funding Agents, the Indenture Trustee,
      the Issuer and the Administrator. The Administrative Agent shall take such
      action with respect to such event as shall be reasonably directed by the Series
      2006-2 

     

     

    
      
         

      

      
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    Required
      Investor Noteholders, provided
      that
      unless and until the Administrative Agent shall have received such directions,
      the Administrative Agent may (but shall not be obligated to) take such action,
      or refrain from taking such action, with respect to such event as it shall
      deem
      advisable in the best interests of the Purchasers. 

     

    SECTION
      10.6.   Non-Reliance
      on the Administrative Agent and Other Purchasers.
      Each of
      the CP Conduit Purchasers, the APA Banks and the Funding Agents expressly
      acknowledges that neither the Administrative Agent nor any of its officers,
      directors, employees, agents, attorneys-in-fact or Affiliates has made any
      representations or warranties to it and that no act by the Administrative Agent
      hereinafter taken, including any review of the affairs of the Issuer, shall
      be
      deemed to constitute any representation or warranty by the Administrative Agent
      to any such Person. Each of the CP Conduit Purchasers, the APA Banks and the
      Funding Agents represents to the Administrative Agent that it has, independently
      and without reliance upon the Administrative Agent or any other CP Conduit
      Purchaser, APA Bank or Funding Agent and based on such documents and information
      as it has deemed appropriate, made its own appraisal of and investigation into
      the business, operations, property, financial and other condition and
      creditworthiness of the Issuer, the Administrator, SPV, Holdings, the
      Origination Trust and the Servicer and made its own decision to enter into
      this
      Indenture Supplement. Each of the CP Conduit Purchasers, the APA Banks and
      the
      Funding Agents also represents that it will, independently and without reliance
      upon the Administrative Agent or any other CP Conduit Purchaser, APA Bank or
      Funding Agent, and based on such documents and information as it shall deem
      appropriate at the time, continue to make its own credit analysis, appraisals
      and decisions in taking or not taking action under this Indenture Supplement
      and
      the other Transaction Documents, and to make such investigation as it deems
      necessary to inform itself as to the business, operations, property, financial
      and other condition and creditworthiness of the Issuer, the Administrator,
      SPV,
      Holdings, the Origination Trust and the Servicer. Except for notices, reports
      and other documents expressly required to be furnished to the Funding Agents
      by
      the Administrative Agent hereunder, the Administrative Agent shall have no
      duty
      or responsibility to provide any CP Conduit Purchaser, any APA Bank or any
      Funding Agent with any credit or other information concerning the business,
      operations, property, condition (financial or otherwise), prospects or
      creditworthiness of the Issuer, the Administrator, SPV, Holdings, the
      Origination Trust or the Servicer which may come into the possession of the
      Administrative Agent or any of its officers, directors, employees, agents,
      attorneys-in-fact or Affiliates.

     

    SECTION
      10.7.   Indemnification.
      Each of
      the APA Banks in a Purchaser Group agrees to indemnify the Administrative Agent
      in its capacity as such (to the extent not reimbursed by the Issuer and the
      Administrator and without limiting the obligation of the Issuer and the
      Administrator to do so), ratably according to their respective Commitment
      Percentages in effect on the date on which indemnification is sought under
      this
Section
      10.7
      (or if
      indemnification is sought after the date upon which the Commitments shall have
      terminated and the Purchaser Group Invested Amounts shall have been reduced
      to
      zero, ratably in accordance with their Commitment Percentages immediately prior
      to such date of payment), from and against any and all liabilities, obligations,
      losses, damages, penalties, actions, judgments, suits, costs, expenses or
      disbursements of any kind whatsoever which may at any time be imposed on,
      incurred by or asserted against the Administrative Agent in any way relating
      to
      or arising out of this Indenture Supplement, any of the other Transaction
      Documents or any documents

     

     

    
      
         

      

      
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     contemplated
      by or referred to herein or therein or the transactions contemplated hereby
      or
      thereby or any action taken or omitted by the Administrative Agent under or
      in
      connection with any of the foregoing; provided
      that no
      APA Bank or Funding Agent shall be liable for the payment of any portion of
      such
      liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
      costs, expenses or disbursements that are found by a final and nonappealable
      decision of a court of competent jurisdiction to have resulted from the
      Administrative Agent’s gross negligence or willful misconduct. The agreements in
      this Section shall survive the payment of all amounts payable
      hereunder.

     

    SECTION
      10.8.   The
      Administrative Agent in Its Individual Capacity.
      The
      Administrative Agent and its Affiliates may make loans to, accept deposits
      from
      and generally engage in any kind of business with the Issuer, the Administrator
      or any of their Affiliates as though the Administrative Agent were not the
      Administrative Agent hereunder. With respect to any Series 2006-2 Investor
      Note
      held by the Administrative Agent, the Administrative Agent shall have the same
      rights and powers under this Indenture Supplement and the other Transaction
      Documents as any APA Bank or Funding Agent and may exercise the same as though
      it were not the Administrative Agent, and the terms “APA Bank,” and “Funding
      Agent” shall include the Administrative Agent in its individual
      capacity.

     

    SECTION
      10.9.   Resignation
      of Administrative Agent; Successor Administrative Agent.
      The
      Administrative Agent may resign as Administrative Agent at any time by giving
      30
      days’ notice to the Funding Agents, the Indenture Trustee, the Issuer and the
      Administrator. The Administrative Agent may be removed at any time by resolution
      of the Series 2006-2 Required Investor Noteholders, removing the Administrative
      Agent and appointing from among the Funding Agents a successor administrative
      agent, which successor administrative agent shall be approved by the Issuer
      and
      the Administrator (which approval shall not be unreasonably withheld), delivered
      to the Administrative Agent, the Indenture Trustee and the Administrator. If
      JPMorgan Chase shall resign as Administrative Agent under this Indenture
      Supplement, then the Series 2006-2 Required Investor Noteholders shall promptly
      appoint a successor administrative agent from among the Funding Agents, which
      successor administrative agent shall be approved by the Issuer and the
      Administrator (which approval shall not be unreasonably withheld). If no
      successor administrative agent is appointed prior to the effective date of
      the
      resignation of the Administrative Agent, the Administrative Agent may appoint,
      after consulting with the Funding Agents, the Issuer and the Administrator,
      a
      successor agent from among the Funding Agents. If no successor administrative
      agent has accepted appointment as Administrative Agent by the date which is
      30
      days following a retiring Administrative Agent’s notice of resignation, the
      retiring Administrative Agent’s resignation shall nevertheless thereupon become
      effective and the Administrator shall assume and perform all of the duties
      of
      the Administrative Agent hereunder until such time, if any, as the Series 2006-2
      Required Investor Noteholders appoint a successor agent as provided for above.
      Effective upon the appointment of a successor administrative agent, such
      successor administrative agent shall succeed to the rights, powers and duties
      of
      the Administrative Agent, and the term “Administrative Agent” shall mean such
      successor administrative agent effective upon such appointment and approval,
      and
      the former Administrative Agent’s rights, powers and duties as Administrative
      Agent shall be terminated, without any other or further act or deed on the
      part
      of such former Administrative Agent or any of the parties to this Indenture
      Supplement. After any retiring Administrative Agent’s resignation as
      Administrative Agent, the provisions of this Article 10 shall inure to its
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    actions
      taken or omitted to be taken by it while it was Administrative Agent under
      this
      Indenture Supplement.

     

    ARTICLE
      11  

     

    THE
      FUNDING AGENTS

     

    SECTION
      11.1.  Appointment.
      Each CP
      Conduit Purchaser and each APA Bank with respect to such CP Conduit Purchaser
      hereby irrevocably designates and appoints the Funding Agent set forth next
      to
      such CP Conduit Purchaser’s name on Schedule I as the agent of such Person under
      this Indenture Supplement and irrevocably authorizes such Funding Agent, in
      such
      capacity, to take such action on its behalf under the provisions of this
      Indenture Supplement and to exercise such powers and perform such duties as
      are
      expressly delegated to such Funding Agent by the terms of this Indenture
      Supplement, together with such other powers as are reasonably incidental
      thereto. Notwithstanding any provision to the contrary elsewhere in this
      Indenture Supplement, each Funding Agent shall not have any duties or
      responsibilities except those expressly set forth herein, or any fiduciary
      relationship with any CP Conduit Purchaser or APA Bank and no implied covenants,
      functions, responsibilities, duties, obliga-tions or liabilities shall be read
      into this Indenture Supplement or otherwise exist against each Funding Agent.
      

     

    SECTION
      11.2.  Delegation
      of Duties.
      Each
      Funding Agent may execute any of its duties under this Indenture Supplement
      by
      or through agents or attorneys-in-fact and shall be entitled to advice of
      counsel concerning all matters pertaining to such duties. Each Funding Agent
      shall not be responsible to the CP Conduit Purchaser or any APA Bank in its
      Purchaser Group for the negligence or misconduct of any agents or attorneys
      in-fact selected by it with reasonable care.

     

    SECTION
      11.3.  Exculpatory
      Provisions.
      Each
      Funding Agent and any of its officers, directors, employees, agents,
      attorneys-in-fact or Affiliates shall not be (i) liable for any action lawfully
      taken or omitted to be taken by it or such Person under or in connection with
      the Base Indenture or this Indenture Supplement (except
      to the extent that any of the foregoing are found by a final and nonappealable
      decision of a court of competent jurisdiction to have resulted from its or
      such
      Person’s own gross negligence or willful misconduct) or
      (ii)
      responsible in any manner to any of the CP Conduit Purchasers and/or APA Banks
      for any recitals, statements, representations or warranties made by the Issuer,
      the Administrator, the Administrative Agent, or any officer thereof contained
      in
      this Indenture Supplement or any other Transaction Document or in any
      certificate, report, statement or other document referred to or provided for
      in,
      or received by such Funding Agent under or in connection with, this Indenture
      Supplement or any other Transaction Document or for the value, validity,
      effectiveness, genuineness, enforceability or sufficiency of this Indenture
      Supplement, any other Transaction Document, or for any failure of any of the
      Issuer, the Administrator, SPV, Holdings, the Origination Trust, the Servicer
      or
      the Administrative Agent to perform its obligations hereunder or thereunder.
      Each Funding Agent shall not be under any obligation to the CP Conduit Purchaser
      or any APA Bank in its Purchaser Group to ascertain or to inquire as to the
      observance or performance of any of the agreements contained in, or conditions
      of, this Indenture Supplement, any other Transaction Document, the Loan Note,
      the SUBI Certificates, the Sold Units or the Fleet Receivables or to inspect
      the

     

     

     

    
      
         

      

      
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     properties,
      books or records of the Issuer, the Administrator, SPV, Holdings, the
      Origination Trust, the Servicer or the Administrative Agent.

     

    SECTION
      11.4.  Reliance
      by Each Funding Agent.
      Each
      Funding Agent shall be entitled to rely, and shall be fully protected in
      relying, upon any writing, resolution, notice, consent, certificate, affidavit,
      letter, telecopy, telex or teletype message, statement, order or other document
      or conversation believed by it to be genuine and correct and to have been
      signed, sent or made by the proper Person or Persons and upon advice and
      statements of legal counsel (includ-ing, without limitation, counsel to the
      Issuer or the Administrator), independent accountants and other experts selected
      by such Funding Agent. Each Funding Agent shall be fully justified in failing
      or
      refusing to take any action under this Indenture Supplement or any other
      Transaction Document unless it shall first receive such advice or concurrence
      of
      the Related Purchaser Group, as it deems appropriate or it shall first be
      indemnified to its satisfaction by the Related Purchaser Group against any
      and
      all liability and expense which may be incurred by it by reason of taking or
      continuing to take any such action.

     

    SECTION
      11.5.  Notice
      of Administrator Default or Amortization Event or Potential Amortization
      Event.
      Each
      Funding Agent shall not be deemed to have knowledge or notice of the occurrence
      of any Amortization Event or Potential Amortization Event, any Event of Default
      or Default, any Termination Event or any Servicer Default unless such Funding
      Agent has received written notice from a CP Conduit Purchaser, an APA Bank,
      the
      Issuer, the Administrator, the Servicer, SPV, Holdings, or the Origination
      Trust
      referring to the Indenture or this Indenture Supplement, describing such
      Amortization Event or Potential Amortization Event, Event of Default or Default,
      Termination Event or Servicer Default or and stating that such notice is a
      “notice of an Amortization Event or Potential Amortization Event,” “notice of an
      Event of Default or Default,” “notice of a Termination Event” or “notice of a
      Servicer Default”, as the case may. In the event that any Funding Agent receives
      such a notice, such Funding Agent shall give notice thereof to the CP Conduit
      Purchaser and APA Banks in its Purchaser Group. Such Funding Agent shall take
      such action with respect to such event as shall be reasonably directed by the
      CP
      Conduit Purchaser and APA Banks in its Purchaser Group, provided
      that
      unless and until such Funding Agent shall have received such directions, such
      Funding Agent may (but shall not be obligated to) take such action, or refrain
      from taking such action, with respect to such event as it shall deem advisable
      in the best interests of the CP Conduit Purchaser and APA Banks in its Purchaser
      Group. 

     

    SECTION
      11.6.  Non-Reliance
      on Each Funding Agent and Other Purchaser Groups.
      Each CP
      Conduit Purchaser and each of the related APA Banks expressly acknowledge that
      neither its Funding Agent nor any of its officers, directors, employees, agents,
      attorneys-in-fact or Affiliates has made any representations or warranties
      to it
      and that no act by such Funding Agent hereinafter taken, including any review
      of
      the affairs of the Issuer shall be deemed to constitute any representation
      or
      warranty by such Funding Agent to any such Person. Each CP Conduit Purchaser
      and
      each of the related APA Banks repre-sents to its Funding Agent that it has,
      independently and without reliance upon such Funding Agent and based on such
      documents and information as it has deemed appropriate, made its own apprai-sal
      of and investi-ga-tion into the business, operations, property, financial and
      other condi-tion and creditworthiness of the Issuer, the Administrator, SPV,
      Holdings, the Origination Trust and the Servicer. Each CP Conduit Purchaser
      and
      each of the related APA Banks also represents that it will,

     

     

    
      
         

      

      
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     independently
      and without reliance upon its Funding Agent and based on such docu-ments and
      information as it shall deem appropriate at the time, continue to make its
      own
      credit analysis, appraisals and deci-sions in taking or not taking action under
      this Indenture Supplement and the other Transaction Documents, and to make
      such
      investigation as it deems necessary to inform itself as to the business,
      opera-tions, property, financial and other conditions and creditworthiness
      of
      the Issuer, the Administrator, SPV, Holdings, the Origination Trust and the
      Servicer. 

     

    SECTION
      11.7.  Indemnification.
      Each
      APA Bank in a Purchaser Group agrees to indemnify its Funding Agent in its
      capacity as such (to the extent not reim-bursed by the Issuer and the
      Administrator and without limiting the obligation of the Issuer and the
      Administrator to do so), ratably according to its respective APA Bank Percentage
      in effect on the date on which indemnification is sought under this Section
      11.7
      (or if
      indemnification is sought after the date upon which the Commitments shall have
      been terminated, ratably in accordance with its APA Bank Percentage at the
      time
      of termination) from and against any and all liabilities, obligations, losses,
      damages, penalties, actions, judgments, suits, costs, expenses or disbursements
      of any kind whatsoever which may at any time be imposed on, incurred by or
      asserted against such Funding Agent in any way relating to or arising out of
      this Indenture Supplement, any of the other Transaction Documents or any
      documents contemplated by or referred to herein or therein or the transactions
      contemplated hereby or thereby or any action taken or omitted by such Funding
      Agent under or in connec-tion with any of the foregoing; provided
      that no
      APA Bank shall be liable for the payment of any portion of such liabilities,
      obligations, losses, damages, penalties, actions, judgments, suits, costs,
      expenses or disbursements that are found by a final and nonappealable decision
      of a court of competent jurisdiction to have resulted from such related Funding
      Agent’s gross negligence or willful misconduct. The agreements in this Section
      shall survive the payment of all amounts payable hereunder.

     

    

     

    ARTICLE
      12  

     

    MISCELLANEOUS

     

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

     

    SECTION
      12.2.   Governing
      Law. 
      THIS INDENTURE SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
      WITH, THE LAWS OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND
      REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
      LAWS.

     

    SECTION
      12.3.   Further
      Assurances. 
      Each of the Issuer, the Administrator and the Indenture Trustee agrees, from
      time to time, to do and perform any and all acts and to execute any and all
      further instruments required or reasonably requested by the Administrative
      

     

     

    
      
         

      

      
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    Agent
      more fully to effect the purposes of this Indenture Supplement and the sale
      of
      the Series 2006-2 Investor Notes hereunder. The Administrative Agent is hereby
      authorized to file any financing or registration statements or similar documents
      or notices or continuation statements in order to perfect the Indenture
      Trustee’s security interest in the Series 2006-2 Collateral.

     

    SECTION
      12.4.   Payments. Each
      payment to be made hereunder shall be made on the required payment
      date in lawful money of the United States and in immediately available funds,
      if
      to a Purchaser, at the office of the Funding Agent with respect to such
      Purchaser Group set forth in Section
      12.9.
      

     

    SECTION
      12.5.   Costs
      and Expenses. 
       The Administrator agrees to pay on demand all reasonable out-of-pocket
      costs and expenses of the Administrative Agent (including, without limitation,
      reasonable fees and disbursements of counsel to the Administrative Agent) and
      of
      each Purchaser Group (including in connection with the preparation, execution
      and delivery of this Indenture Supplement the reasonable fees and disbursements
      of counsel to such Purchaser Group) in connection with (i) the preparation,
      execution, delivery and administration (including periodic auditing and any
      requested amendments, waivers or consents) of this Indenture Supplement, the
      Indenture and the other Transaction Documents and amendments or waivers of
      any
      such documents and (ii) the enforcement by the Administrative Agent or any
      Funding Agent of the obligations and liabilities of the Issuer, the
      Administrator, SPV, Holdings, the Origination Trust, VMS and the Servicer under
      the Indenture, this Indenture Supplement or the other Transaction Documents
      and
      all costs and expenses, if any (including reasonable counsel fees and expenses),
      in connection with the enforcement of this Agreement and the other Transaction
      Documents.

     

    SECTION
      12.6.   No
      Waiver; Cumulative Remedies.  
      No failure to exercise and no delay in exercising, on the part of the Indenture
      Trustee, the Administrative Agent, any Funding Agent, any CP Conduit Purchaser
      or any APA Bank, any right, remedy, power or privilege hereunder shall operate
      as a waiver thereof; nor shall any single or partial exercise of any right,
      remedy, power or privilege hereunder preclude any other or further exercise
      thereof or the exercise of any other right, remedy, power or privilege. The
      rights, remedies, powers and privileges herein provided are cumulative and
      not
      exhaustive of any rights, remedies, powers and privileges provided by law.
      

     

    SECTION
      12.7.   Amendments. 
      (a) This
      Indenture Supplement may be amended in writing from time to time by the
      Administrator, the Issuer and the Indenture Trustee, with the consent of the
      Series 2006-2 Required Investor Noteholders; provided that, notwithstanding
      the
      foregoing, without the consent of each CP Conduit Purchaser and each APA Bank,
      no such amendment shall:

     

    (i)  
      reduce
      the percentage of Series 2006-2 Investor Noteholders whose consent is required
      to take any particular action hereunder;

     

    (ii)  (A)
      extend the due date for, or reduce the amount of any scheduled repayment or
      prepayment of principal of or interest on any Series 2006-2 Investor Note (or
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    Series
      2006-2 Investor Note); (B) extend the due date for, or reduce the amount of
      any
      Commitment Fee payable hereunder; (C) change the calculation of any Article
      7
      Costs or other amounts payable by the Issuer to the CP Conduit Purchasers or
      APA
      Banks hereunder; (D) modify Section
      5A.4(c);
      (E)
      approve the assignment or transfer by the Issuer of any of its rights or
      obligations hereunder or under any other Transaction Document to which it is
      a
      party except pursuant to the express terms hereof or thereof; (F) release any
      obligor under any Transaction Document to which it is a party except pursuant
      to
      the express terms of such Transaction Document; (G) amend or otherwise modify
      any Amortization Event or any defined term referred to therein; (H) amend or
      otherwise modify the Series 2006-2 Required Asset Amount, the Series 2006-2
      Required Overcollateralization Amount, the Series 2006-2 Required Enhancement
      Amount or any defined term referred to therein or (I) permit the creation of
      any
      Lien ranking prior to or on a parity with the Indenture Trustee’s Lien on the
      Series 2006-2 Collateral, release such Lien except pursuant to the express
      terms
      hereof or deprive any Series 2006-2 Investor Noteholder of the security afforded
      by such Lien;

     

    (iii)  modify
      Section
      12.7(a);
      and

     

    (iv)  modify
      the allocations and priorities of payments set forth in Article 3 of this
      Indenture Supplement.

     

    (b)  Any
      amendment hereof can be effected without the Administrative Agent’s being party
      thereto; provided,
      however,
      that no
      such amendment, modification or waiver of this Indenture Supplement that affects
      rights or duties of the Administrative Agent shall be effective unless the
      Administrative Agent shall have given its prior written consent
      thereto.

     

    (c)  Promptly
      after the execution of any amendment hereof, the Administrator shall mail to
      each of the Funding Agents and each Rating Agency a copy thereof.

     

    SECTION
      12.8.   Severability. If
      any provision hereof is void or unenforceable in any jurisdiction, such
      voidness or unenforceability shall not affect the validity or enforceability
      of
      (i) such provision in any other jurisdiction or (ii) any other provision hereof
      in such or any other jurisdiction.

     

    SECTION
      12.9.   Notices. 
      All notices, requests, instructions and demands to or upon any party hereto
      to
      be effective shall be given (i) in the case of the Issuer, the Administrator
      and
      the Indenture Trustee, in the manner set forth in Section
      13.4
      of the
      Base Indenture and (ii) in the case of the Administrative Agent, the CP Conduit
      Purchasers, the APA Banks and the Funding Agents, in writing, and, unless
      otherwise expressly provided herein, shall be deemed to have been duly given
      or
      made when delivered by hand or three days after being deposited in the mail,
      postage prepaid, in the case of facsimile notice, when received, or in the
      case
      of overnight air courier, one Business Day after the date such notice is
      delivered to such overnight courier, addressed as follows in the case of the
      Administrative Agent and to the addresses therefor set forth in Schedule I,
      in
      the case of the CP Conduit Purchasers, the APA Banks and the Funding Agents;
      or
      to such other address as may be hereafter notified by the respective parties
      hereto:

     

     

    
      
         

      

      
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           Administrative
Agent:     

       
     JPMorgan
      Chase Bank, National Association

    c/o
      JPMorgan Securities Inc.

    10
      South
      Dearborn - 13th Floor

    Chicago,
      IL 60670

    Attention:
      Asset-Backed Finance

    Fax
      (312)
      732-3600

    

    SECTION
      12.10.   Successors
      and Assigns. 
      (a) This
      Indenture Supplement shall be binding upon and inure to the benefit of the
      parties hereto and their respective successors and assigns, except that the
      Issuer may not assign or transfer any of its rights under this Indenture
      Supplement without the prior written consent of all of the Series 2006-2
      Investor Noteholders, no CP Conduit Purchaser may assign or transfer any of
      its
      rights under this Indenture Supplement other than in accordance with the Asset
      Purchase Agreement with respect to such CP Conduit Purchaser or otherwise to
      the
      APA Bank with respect to such CP Conduit Purchaser or a Program Support Provider
      with respect to such CP Conduit Purchaser or pursuant to clause (b) below of
      this Section 12.10
      and no
      APA Bank may assign or transfer any of its rights or obligations under this
      Indenture Supplement except to a Program Support Provider or pursuant to clause
      (c) below of this Section
      12.10.

     

    (b)  Without
      limiting the foregoing, each CP Conduit Purchaser may assign all or a portion
      of
      the Purchaser Group Invested Amount with respect to such CP Conduit Purchaser
      and its rights and obli-ga-tions under this Indenture Supplement and any other
      Transaction Documents to which it is a party to a Conduit Assignee with respect
      to such CP Conduit Purchaser. Prior to or concurrently with the effectiveness
      of
      any such assignment (or if impracticable, immediately thereafter), the assigning
      CP Conduit Purchaser shall notify the Administrative Agent, the Issuer, the
      Indenture Trustee and the Administrator thereof. Upon such assignment by a
      CP
      Conduit Purchaser to a Conduit Assignee, (A) such Conduit Assignee shall be
      the
      owner of the Purchaser Group Invested Amount or such portion thereof with
      respect to such CP Conduit Purchaser, (B) the related administrative or managing
      agent for such Conduit Assignee will act as the administrative agent for such
      Conduit Assignee hereunder, with all corresponding rights and powers, express
      or
      implied, granted to the Funding Agent hereunder or under the other Transaction
      Documents, (C) such Conduit Assignee and its liquidity support provider(s)
      and
      credit support provider(s) and other related parties shall have the benefit
      of
      all the rights and protections provided to such CP Conduit Purchaser herein
      and
      in the other Transaction Documents (including, without limitation, any
      limitation on recourse against such Conduit Assignee as provided in this
      paragraph), (D) such Conduit Assignee shall assume all of such CP Conduit
      Purchaser’s obligations, if any, hereunder or under the Base Indenture or under
      any other Transaction Document with respect to such portion of the Purchaser
      Group Invested Amount and such CP Conduit Purchaser shall be released from
      such
      obligations, (E) all distributions in respect of the Purchaser Group Invested
      Amount or such portion thereof with respect to such CP Conduit Purchaser shall
      be made to the applicable agent or administrative agent, as appli-cable, on
      behalf of such Conduit Assignee, (F) the definitions of the terms “Monthly
      Funding Costs” and “Discount” shall be determined in the manner set forth in the
      definition of “Monthly Funding Costs” and “Discount” applicable to such CP
      Conduit Purchaser on the basis of the interest rate or discount applicable
      to
      commercial paper issued by such Conduit Assignee (rather than such CP Conduit
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    terms
      and
      provisions of this Indenture Supplement, the Base Indenture and the other
      Transaction Documents shall be interpreted in accordance with the foregoing,
      and
      (H) if requested by the Administrative Agent or the agent or administrative
      agent with respect to the Conduit Assignee, the parties will execute and deliver
      such further agreements and documents and take such other actions as the
      Administrative Agent or such agent or administrative agent may reasonably
      request to evidence and give effect to the foregoing.

     

    (c)  Any
      APA
      Bank may, in the ordinary course of its business and in accordance with
      applicable law, at any time sell all or any part of its rights and obligations
      under this Indenture Supplement and the Series 2006-2 Investor Notes, with
      the
      prior written consent of the Administrative Agent, the Issuer and the
      Administrator (in each case, which consent shall not be unreasonably withheld),
      to one or more banks (an “Acquiring
      APA Bank”)
      pursuant to a transfer supplement, substantially in the form of Exhibit G hereto
      (the “Transfer
      Supplement”),
      executed by such Acquiring APA Bank, such assigning APA Bank, the Funding Agent
      with respect to such APA Bank, the Administrative Agent, the Issuer and the
      Administrator and delivered to the Administrative Agent. Notwithstanding the
      foregoing, no APA Bank shall so sell its rights hereunder if such Acquiring
      APA
      Bank is not an Eligible Assignee. 

     

    (d)  Any
      APA
      Bank may, in the ordinary course of its business and in accordance with
      applicable law, at any time sell to one or more financial institutions or other
      entities (“Participants”)
      participations in its APA Bank Percentage of the Commitment of the APA Banks
      in
      its Purchaser Group, its APA Bank Percentage of the Series 2006-2 Investor
      Note
      of its Purchaser Group and its rights hereunder pursuant to documentation in
      form and substance satisfactory to such APA Bank and the Participant;
provided,
      however,
      that
      (i) in the event of any such sale by an APA Bank to a Participant, (A) such
      APA
      Bank’s obligations under this Indenture Supplement shall remain unchanged, (B)
      such APA Bank shall remain solely responsible for the performance thereof and
      (C) the Issuer and the Administrative Agent shall continue to deal solely and
      directly with such APA Bank in connection with its rights and obligations under
      this Indenture Supplement and (ii) no APA Bank shall sell any participating
      interest under which the Participant shall have rights to approve any amendment
      to, or any consent or waiver with respect to, this Indenture Supplement or
      any
      Transaction Document, except to the extent that the approval of such amendment,
      consent or waiver otherwise would require the unanimous consent of all APA
      Banks
      hereunder. A Participant shall have the right to receive Article 7 Costs but
      only to the extent that the related selling APA Bank would have had such right
      absent the sale of the related participation.

     

    (e)  Any
      CP
      Conduit Purchaser and the APA Bank with respect to such CP Conduit Purchaser
      may
      at any time sell all or any part of their respective rights and obligations
      under this Indenture Supplement and the Series 2006-2 Investor Notes, with
      the
      prior written consent of the Administrative Agent, the Issuer and the
      Administrator (in each case, which consent shall not be unreasonably withheld),
      to a multi-seller commercial paper conduit and one or more banks providing
      support to such multi-seller commercial paper conduit (an “Acquiring
      Purchaser Group”)
      pursuant to a transfer supplement, substantially in the form of Exhibit H hereto
      (the “Purchaser
      Group Supplement”),
      executed by such Acquiring Purchaser Group, the Funding Agent 

     

     

    
      
         

      

      
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    with
      respect to such Acquiring Purchaser Group (including the CP Conduit Purchaser
      and the APA Banks with respect to such Purchaser Group), such assigning CP
      Conduit Purchaser and the APA Banks with respect to such CP Conduit Purchaser,
      the Funding Agent with respect to such assigning CP Conduit Purchaser and APA
      Bank, the Administrative Agent, the Issuer and the Administrator and delivered
      to the Administrative Agent.

     

    (f)  The
      Issuer authorizes each APA Bank to disclose to any Participant or Acquiring
      APA
      Bank (each, a “Transferee”)
      and
      any prospective Transferee any and all financial information in such APA Bank’s
      possession concerning the Issuer, the Collateral, the Servicer and the
      Transaction Documents which has been delivered to such APA Bank by the Issuer
      or
      the Administrator in connection with such APA Bank’s credit evaluation of the
      Issuer, the Collateral and the Servicer.

     

    SECTION
      12.11.   Securities
      Laws. 
      Each CP Conduit Purchaser and APA Bank hereby represents and warrants to the
      Issuer that it is an “accredited investor” as such term is defined in Rule
      501(a) of Regulation D under the Securities Act and has sufficient assets to
      bear the economic risk of, and sufficient knowledge and experience in financial
      and business matters to evaluate the merits and risks of, its investment in
      a
      Series 2006-2 Investor Note. Each CP Conduit Purchaser and each APA Bank agrees
      that its Series 2006-2 Investor Note will be acquired for investment only and
      not with a view to any public distribution thereof, and that such CP Conduit
      Purchaser or APA Bank will not offer to sell or otherwise dispose of its Series
      2006-2 Investor Note (or any interest therein) in violation of any of the
      registration requirements of the Securities Act, or any applicable state or
      other securities laws. Each CP Conduit Purchaser and each APA Bank acknowledges
      that it has no right to require the Issuer to register its Series 2006-2
      Investor Note under the Securities Act or any other securities law. Each CP
      Conduit Purchaser and each APA Bank hereby confirms and agrees that in
      connection with any transfer by it of an interest in the Series 2006-2 Investor
      Note, such CP Conduit Purchaser or APA Bank has not engaged and will not engage
      in a general solicitation or general advertising including advertisements,
      articles, notices or other communications published in any newspaper, magazine
      or similar media or broadcast over radio or television, or any seminar or
      meeting whose attendees have been invited by any general solicitation or general
      advertising.

     

    SECTION
      12.12.   Adjustments;
      Set-off. 
      (a) If
      any CP
      Conduit Purchaser or APA Bank in a Purchaser Group (a “Benefitted
      Purchaser Group”)
      shall
      at any time receive in respect of its Purchaser Group Invested Amount any
      distribution of principal, interest, Commitment Fees or any interest thereon,
      or
      receive any collateral in respect thereof (whether voluntarily or involuntarily,
      by set-off or otherwise) in a greater proportion than any such distribution
      received by any other Purchaser Group, if any, in respect of such other
      Purchaser Group’s Purchaser Group Invested Amount, or interest thereon, such
      Benefitted Group Purchaser shall purchase for cash from the other Purchaser
      Group such portion of such other Purchaser Group’s interest in the Series 2006-2
      Investor Notes, or shall provide such other Purchaser Group with the benefits
      of
      any such collateral, or the proceeds thereof, as shall be necessary to cause
      such Benefitted Purchaser Group to share the excess payment or benefits of
      such
      collateral or proceeds ratably with the other Purchaser Group; provided,
      however,
      that if
      all or any portion of such excess payment or benefits is thereafter recovered
      from such Benefitted Purchaser Group, such purchase shall be rescinded, and
      the
      purchase price and benefits returned, to the extent of such recovery, but
      without interest. The Issuer agrees that any Purchaser Group so purchasing
      a
      portion of another Purchaser Group’s Purchaser Group Invested Amount may
      exercise all rights of payment (including, without limitation, rights of
      set-off) with respect to such portion as fully as if such Purchaser Group were
      the direct holder of such portion.

     

     

    
      
         

      

      
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    (b)  
      In
      addition to any rights and remedies of the Purchaser Groups provided by law,
      each CP Conduit Purchaser and each APA Bank shall have the right, without prior
      notice to the Issuer, any such notice being expressly waived by the Issuer
      to
      the extent permitted by applicable law, upon any amount becoming due and payable
      by the Issuer hereunder or under the Series 2006-2 Investor Notes to set-off
      and
      appropriate and apply against any and all deposits (general or special, time
      or
      demand, provisional or final), in any currency, and any other credits,
      indebtedness or claims, in any currency, in each case whether direct or
      indirect, absolute or contingent, matured or unmatured, at any time held or
      owing by such CP Conduit Purchaser or such APA Bank to or for the credit or
      the
      account of the Issuer. Each CP Conduit Purchaser and each APA Bank agrees
      promptly to notify the Issuer and the Administrative Agent after any such
      set-off and application made by such Person; provided
      that the
      failure to give such notice shall not affect the validity of such set-off and
      application.

     

    SECTION
      12.13.   Counterparts. 
      This Indenture Supplement may be executed in any number of counterparts and
      by
      the different parties hereto in separate counterparts, each of which when so
      executed shall be deemed to be an original, and all of which taken together
      shall constitute one and the same agreement.

     

    SECTION
      12.14.   No
      Bankruptcy Petition. (a) Each
      of
      the Administrative Agent, the CP Conduit Purchasers, the APA Banks and the
      Funding Agents hereby covenants and agrees that, prior to the date which is
      one
      year and one day after the later of (i) the last day of the Series 2006-2
      Amortization Period and (ii) the last day of the amortization period of any
      other Outstanding Series, it will not institute against, or join any other
      Person in instituting against, the Issuer any involuntary, bankruptcy,
      reorganization, arrangement, insolvency or liquidation proceedings, or other
      similar proceedings under any federal or state bankruptcy or similar
      law.

     

    (b)  
      The
      Issuer, the Administrator, the Indenture Trustee, the Administrative Agent,
      each
      Funding Agent and each APA Bank hereby covenants and agrees that, prior to
      the
      date which is one year and one day after the payment in full of all outstanding
      Commercial Paper issued by, or for the benefit of, a CP Conduit Purchaser,
      it
      will not institute against, or join any other Person in instituting against,
      such CP Conduit Purchaser (or the Person issuing Commercial Paper for the
      benefit of such CP Conduit Purchaser) any involuntary bankruptcy,
      reorganization, arrangement, insolvency or liquidation proceedings, or other
      similar proceedings under any federal or state bankruptcy or similar
      law.

     

    (c)  
      The
      Issuer, the Administrator, the Indenture Trustee, the Administrative Agent,
      each
      CP Conduit Purchaser, each APA Bank and each Funding Agent hereby covenants
      and
      agrees that, prior to the date which is one year and one day after payment
      in
      full of all obligations under each Securitization, it will not institute
      against, or join any other Person in instituting against, the Origination Trust,
      SPV, Holdings, any other Special Purpose Entity, or any general partner or
      single member of any Special Purpose Entity that is a partnership or limited
      liability company, respectively, any involuntary bankruptcy, reorganization,
      arrangement, insolvency or liquidation proceeding or other proceedings under
      any
      federal or state bankruptcy or similar law.

     

     

    
      
         

      

      
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    (d)  
      This
      covenant shall survive the termination of this Indenture Supplement and the
      Base
      Indenture and the payment of all amounts payable hereunder and
      thereunder.

     

    SECTION
      12.15.   SUBIs.
      The Issuer, the Administrator, the Administrative Agent, each CP Conduit
      Purchaser, each APA Bank and each Funding Agent hereby represents, warrants
      and
      covenants that (a) each of the Lease SUBI and the Fleet Receivable SUBI is
      a
      separate series of the Origination Trust as provided in Section 3806(b)(2)
      of
      Chapter 38 of Title 12 of the Delaware Code, 12 Del.C.
§
3801
      et seq.,
      (b)(i)
      the debts, liabilities, obligations and expenses incurred, contracted for or
      otherwise existing with respect to the Lease SUBI, the Lease SUBI Portfolio
      or
      the Fleet Receivable SUBI shall be enforceable against the Lease SUBI Portfolio
      or the Fleet Receivable SUBI only, as applicable, and not against any other
      SUBI
      Portfolio or the UTI Portfolio and (ii) the debts, liabilities, obligations
      and
      expenses incurred, contracted for or otherwise existing with respect to any
      other SUBI (used in this Section as defined in the Origination Trust Agreement),
      any other SUBI Portfolio (used in this Section as defined in the Origination
      Trust Agreement), the UTI or the UTI Portfolio shall be enforceable against
      such
      other SUBI Portfolio or the UTI Portfolio only, as applicable, and not against
      any other SUBI Assets, (c) except to the extent required by law, UTI Assets
      or
      SUBI Assets with respect to any SUBI (other than the Lease SUBI and the Fleet
      Receivable SUBI) shall not be subject to the claims, debts, liabilities,
      expenses or obligations arising from or with respect to the Lease SUBI or Fleet
      Receivable SUBI, respectively, in respect of such claim, (d)(i) no creditor
      or
      holder of a claim relating to the Lease SUBI, the Fleet Receivable SUBI or
      the
      Lease Receivable SUBI Portfolio shall be entitled to maintain any action against
      or recover any assets allocated to the UTI or the UTI Portfolio or any other
      SUBI or the assets allocated thereto, and (ii) no creditor or holder of a claim
      relating to the UTI, the UTI Portfolio or any SUBI other than the Lease SUBI
      or
      the Fleet Receivable SUBI or any SUBI Assets other than the Lease SUBI Portfolio
      or the Fleet Receivables shall be entitled to maintain any action against or
      recover any assets allocated to the Lease SUBI or the Fleet Receivable SUBI,
      and
      (e) any purchaser, assignee or pledgee of an interest in the Lease SUBI, the
      Lease SUBI Certificate, the Fleet Receivable SUBI, the Lease SUBI Certificate,
      the Fleet Receivable SUBI Certificate, any other SUBI, any other SUBI
      Certificate (used in this Section as defined in the Origination Trust
      Agreement), the UTI or the UTI Certificate must, prior to or contemporaneously
      with the grant of any such assignment, pledge or security interest, (i) give
      to
      the Origination Trust a non-petition covenant substantially similar to that
      set
      forth in Section 6.9 of the Origination Trust Agreement, and (ii) execute an
      agreement for the benefit of each holder, assignee or pledgee from time to
      time
      of the UTI or UTI Certificate and any other SUBI or SUBI Certificate to release
      all claims to the assets of the Origination Trust allocated to the UTI and
      each
      other SUBI Portfolio and in the event that such release is not given effect,
      to
      fully subordinate all claims it may be deemed to have against the assets of
      the
      Origination Trust allocated to the UTI Portfolio and each other SUBI
      Portfolio.

     

    SECTION
      12.16.   Discharge
      of Indenture. 
      Notwithstanding anything to the contrary contained in the Base Indenture, no
      discharge of the Indenture pursuant to Section
      12.1(b)
      of the
      Base Indenture will be effective as to the Series 2006-2 Investor Notes without
      the consent of the Series 2006-2 Required Investor Noteholders.

     

    SECTION
      12.17.   Limited
      Recourse.(a) Notwithstanding
      anything to the contrary contained herein, any obligations of each CP Conduit
      Purchaser hereunder to any party hereto are solely the corporate obligations
      of
      such CP Conduit Purchaser and shall be payable at 

     

     

    
      
         

      

      
        83

        
          

        

      

      
         

      

    

     

    such
      time
      as funds are received by or are available to such CP
      Conduit
      Purchaser in excess of funds necessary to pay in full all of its outstanding
      Commercial Paper and, to the extent funds are not available to pay such
      obligations, the claims relating thereto shall not constitute a claim against
      such CP Conduit Purchaser but shall continue to accrue. Each party hereto agrees
      that the payment of any claim (as defined in Section 101 of Title 11 of the
      Bankruptcy Code) of any such party against a CP Conduit Purchaser shall be
      subordinated to the payment in full of all of its Commercial Paper.

     

    (b)  
      No
      recourse under any obligation, covenant or agreement of any CP Conduit Purchaser
      contained herein shall be had against any incorporator, stockholder, officer,
      director, employee or agent of such CP Conduit Purchaser, its administrative
      agent, the Funding Agent with respect to such CP Conduit Purchaser or any of
      their Affiliates by the enforcement of any assessment or by any legal or
      equitable proceeding, by virtue of any statute or otherwise; it being expressly
      agreed and understood that this Indenture Supplement is solely a corporate
      obligation of such CP Conduit Purchaser individually, and that no personal
      liability whatever shall attach to or be incurred by any incorporator,
      stockholder, officer, director, employee or agent of such CP Conduit Purchaser,
      its administrative agent, the Funding Agent with respect to such CP Conduit
      Purchaser or any of its Affiliates (solely by virtue of such capacity) or any
      of
      them under or by reason of any of the obligations, covenants or agreements
      of
      such CP Conduit Purchaser contained in this Agreement, or implied therefrom,
      and
      that any and all personal liability for breaches by such CP Conduit Purchaser
      of
      any of such obligations, covenants or agreements, either at common law or at
      equity, or by statute, rule or regulation, of every such incorporator,
      stockholder, officer, director, employee or agent is hereby expressly waived
      as
      a condition of and in consideration for the execution of this Indenture
      Supplement; provided
      that the
      foregoing shall not relieve any such Person from any liability it might
      otherwise have as a result of fraudulent actions taken or omissions made by
      them. The provisions of this Section 12.18 shall survive termination of this
      Indenture Supplement.

     

    SECTION
      12.18.   Waiver
      of Setoff. 
      Notwithstanding any other provision of this Indenture Supplement or any other
      agreement to the contrary, all payments to the Purchasers hereunder shall be
      made without set-off or counterclaim.

     

    SECTION
      12.19.   Conflict
      of Instructions. In
      the event the Issuer and the Administrator shall have delivered
      conflicting instructions to the Indenture Trustee or the Administrative Agent
      to
      take or refrain from taking action hereunder, the Indenture Trustee or the
      Administrative Agent, as the case may be, shall follow the instructions of
      the
      Issuer.

     

    SECTION
      12.20.   JPMorgan
      Chase Conflict Waiver. 
      JPMorgan Chase acts as the Funding Agent with respect to one or more of the
      CP
      Conduit Purchasers (collectively, “Conduit) and as administrative agent for
      Conduit, as issuing and paying agent for Conduit’s Commercial Paper, as provider
      of other backup facilities for Conduit, and may provide other services or
      facilities from time to time (the “JPMorgan
      Chase Roles”).
      Each
      of the parties hereto hereby acknowledges and consents to any and all JPMorgan
      Chase Roles, waives any objections it may have to any actual or potential
      conflict of interest caused by JPMorgan Chase’s acting as the Funding Agent with
      respect to Conduit or as the APA Bank with respect to Conduit and acting as
      or
      maintaining any of the JPMorgan Chase Roles, and agrees that in connection
      with

     

     

    
      
         

      

      
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    any
      JPMorgan Chase Role, JPMorgan Chase may take, or refrain from taking, any action
      which it in its discretion deems appropriate.

     

    SECTION
      12.21.  Confidential
      Information. (a)  The
      Indenture Trustee and each Series 2006-2 Investor Noteholder will maintain
      the
      confidentiality of all Confidential Information in accordance with procedures
      adopted by the Indenture Trustee or such Series 2006-2 Investor Noteholder
      in
      good faith to protect Confidential Information of third parties delivered to
      such Person; provided, that such Person may deliver or disclose Confidential
      Information to: (i) such Person’s directors, trustees, officers, employees,
      agents, attorneys, independent or internal auditors and affiliates who agree
      to
      hold confidential the Confidential Information substantially in accordance
      with
      the terms of this Section
      12.21;
      (ii)
      such Person’s financial advisors and other professional advisors who agree to
      hold confidential the Confidential Information substantially in accordance
      with
      the terms of this Section
      12.21;
      (iii)
      any other Series 2006-2 Investor Noteholder; (iv) any Person of the type that
      would, to such Person’s knowledge, be permitted to acquire Series 2006-2
      Investor Notes in accordance with the requirements of the Indenture to which
      such Person sells or offers to sell any such Series 2006-2 Note or any part
      thereof or any participation therein that agrees to hold confidential the
      Confidential Information substantially in accordance with this Section
      12.21
      (or in
      accordance with such other confidentiality procedures as are acceptable to
      the
      Issuer); (v) any federal or state or other regulatory, governmental or judicial
      authority having jurisdiction over such Person; (vi) the National Association
      of
      Insurance Commissioners or any similar organization, or any nationally
      recognized rating agency that requires access to information about the
      investment portfolio of such Person; (vii) such Person’s reinsurers, liquidity
      providers, credit providers, investors or potential investors or the directors,
      trustees, officers, employees, agents, attorneys, independent or internal
      auditors, financial advisors or other professional advisors of such reinsurers,
      liquidity providers, credit providers, investors or potential investors who,
      in
      each case, agree to hold confidential the Confidential Information substantially
      in accordance with this Section
      12.21
      (or in
      accordance with such other confidentiality procedures as are acceptable to
      the
      Issuer); (viii) any Person acting as a placement agent or dealer with respect
      to
      any Commercial Paper (provided that any Confidential Information provided to
      any
      such placement agent or dealer does not reveal the identity of PHH or any of
      its
      Affiliates); (ix) any other Person with the consent of the Issuer; or (x) any
      other Person to which such delivery or disclosure may be necessary or
      appropriate (A) to effect compliance with any law, rule, regulation, statute
      or
      order applicable to such Person, (B) in response to any subpoena or other legal
      process upon prior notice to the Issuer (unless prohibited by applicable law,
      rule, order or decree or other requirement having the force of law), (C) in
      connection with any litigation to which such Person is a party upon prior notice
      to the Issuer (unless prohibited by applicable law, rule, order or decree or
      other requirement having the force of law) or (D) if an Amortization Event
      has
      occurred and is continuing, to the extent such Person may reasonably determine
      such delivery and disclosure to be necessary or appropriate in the enforcement
      or for the protection of the rights and remedies under the Series 2006-2
      Investor Notes, the Indenture or any other Related Document; and provided,
      further, however, that delivery to Series 2006-2 Investor Noteholders of any
      report or information required by the terms of the Indenture to be provided
      to
      Series 2006-2 Investor Noteholders shall not be a violation of this Section
      12.21.
      Each
      Series 2006-2 Investor Noteholder agrees, except as set forth in clauses (v),
      (vi) and (x) above, that it shall use the Confidential Information for the
      sole
      purpose of 

     

     

    
      
         

      

      
        85

        
          

        

      

      
         

      

    

     

    making
      an
      investment in the Series 2006-2 Investor Notes or administering its investment
      in the Series 2006-2 Investor Notes. In the event of any required disclosure
      of
      the Confidential Information by such Series 2006-2 Investor Noteholder, such
      Series 2006-2 Investor Noteholder agrees to use reasonable efforts to protect
      the confidentiality of the Confidential Information. Each Series 2006-2 Investor
      Noteholder, by its acceptance of a Series 2006-2 Note, will be deemed to have
      agreed to be bound by and to be entitled to the benefits of this Section
      12.21.

     

    (b)  For
      the
      purposes of this Section
      12.21,
      “Confidential Information” means information delivered to the Indenture Trustee
      or any Series 2006-2 Investor Noteholder by or on behalf of the Issuer in
      connection with and relating to the transactions contemplated by or otherwise
      pursuant to the Indenture and the Transaction Documents; provided, that such
      term does not include information that: (i) was publicly known or otherwise
      known to the Indenture Trustee or such Series 2006-2 Investor Noteholder prior
      to the time of such disclosure; (ii) subsequently becomes publicly known through
      no act or omission by the Indenture Trustee, any Series 2006-2 Investor
      Noteholder or any person acting on behalf of the Indenture Trustee or any Series
      2006-2 Investor Noteholder; (iii) otherwise is known or becomes known to the
      Indenture Trustee or any Series 2006-2 Investor Noteholder other than (x)
      through disclosure by the Issuer or (y) as a result of the breach of a fiduciary
      duty to the Issuer or a contractual duty to the Issuer; or (iv) is allowed
      to be
      treated as non-confidential by consent of the Issuer.

     

    
      
        
          

        

         

      

      
        86

        
          

        

      

      
         

        
          

        

      

    

    IN
      WITNESS WHEREOF, the Issuer, the Administrator, the Administrative Agent, the
      CP
      Conduit Purchasers, the APA Banks, the Funding Agents and the Indenture Trustee
      have caused this Indenture Supplement to be duly executed by their respective
      officers hereunto duly authorized as of the day and year first above
      written.

     

    CHESAPEAKE
      FUNDING LLC

     

    
      	 	
              By:

            	
               /s/
                Mark E. Johnson
                                      

            

    

    
      	 	
              Name:

            	
               
                Mark E. Johnson

            

    

    Title:
       Vice
      President & Treasurer

     

    PHH
      VEHICLE MANAGEMENT SERVICES, LLC

     

    By:  /s/
      Mark E. Johnson  
                                  

    Name:
      Mark E. Johnson

    Title:
      Vice President & Treasurer

     

    JPMORGAN
      CHASE BANK, NATIONAL 

        
      ASSOCIATION, as Administrative Agent 

     

    
      	 	
              By:

            	
              /s/
                John K. Svolos 
                            

            

    

    Name:
      John K. Svolos

    Title:
       
      Vice
      President

     

    THE
      BANK
      OF NEW YORK, as successor 

      
      Indenture Trustee

     

    
      	 	
              By:

            	
               /s/
                Diane E. Wallace
                                

            

    

    Name: 
      Diane E.
      Wallace 

    Title:
       
      Vice
      President  

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    PARK
      AVENUE RECEIVABLES COMPANY, LLC,

     as
      a CP Conduit Purchaser

    

    

    
      	 	
              By:

            	
               /s/
                John K. Svolos
                                

            

    

    Name: 
      John K.
      Svolos 

    Title:
      Vice President

    

    

    JPMORGAN
      CHASE BANK, NATIONAL ASSOCIATION, 

    as
      an APA
      Bank and a Funding Agent

    

    

    
      	 	
              By:

            	
               /s/
                John K. Svolos
                                

            

    

    Name: 
      John K.
      Svolos 

    Title:
      Vice President:

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    VARIABLE
      FUNDING CAPITAL COMPANY LLC, 

    as
      a CP
      Conduit Purchaser

    

    By:
      WACHOVIA CAPITAL MARKETS, LLC, 

    As
      Attorney-in-Fact

    

    

    By:
       /s/
      Douglas R. Wilson, Sr.    

    Name:
      Douglas R. Wilson, Sr.

    Title:
      Vice President

    

    

    WACHOVIA
      BANK, NATIONAL ASSOCIATION, 

    as
      an APA
      Bank and a Funding Agent

    

    

    By:
       /s/
      Andrew W. Riebe    

    Name:
      Andrew W. Riebe

    Title:
      Vice President 

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    YC
      SUSI
      TRUST, as a CP Conduit Purchaser

    

    

    By:
      Bank
      of America, National Association, 

    as
      Administrative Trustee

    

    

    By:
       /s/
      Leif E. Rauer    

    Name:
      Leif E. Rauer

    Title:
      Vice President

    

    

    BANK
      OF
      AMERICA, NATIONAL ASSOCIATION,

     as
      an APA Bank and a Funding Agent

    

    

    By:
       /s/
      Leif E. Rauer    

    Name:
      Leif E. Rauer

    Title:
      Vice President 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SARATOGA
      FUNDING CORP. LLC, 

    as
      a CP
      Conduit Purchaser

    

    

    By:
       /s/
      Lori Gebron    

    Name:
      Lori Gebron

    Title:
      Vice President 

    

    

    DEUTSCHE
      BANK AG, NEW YORK BRANCH,

    As
      an APA
      Bank and a Funding Agent

    

    

    By:
       /s/
      Michael Cheng    

    Name:
      Michael Cheng

    Title:
      Director

    

    

    By:
       /s/
      Peter Kim     

    Name:
      Peter Kim

    Title:
      Vice President

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    LIBERTY
      STREET FUNDING CORP.,

     as
      a CP Conduit Purchaser

    

    

    By:
       /s/
      Jill A. Gordon    

    Name:
      Jill A. Gordon

    Title:
      Vice President

    

    

    THE
      BANK
      OF NOVA SCOTIA, NEW YORK AGENCY, 

    as
      an APA
      Bank and a Funding Agent

    

    

    By:
       /s/
      William R. Collins    

    Name:
      William R. Collins

    Title: Managing
      Director

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    PARADIGM
      FUNDING, LLC, 

    as
      a CP
      Conduit Purchaser

    

    

    By:
       /s/
      Michael Gilhuley    

    Name:
      Michael Gilhuley

    Title:
      Associate Director

    

    

    WESTLB
      AG, New York Branch, 

    as
      an APA
      Bank and a Funding Agent

    

    

    By:
       /s/
      Brian Statfeld    

    Name:
      Brian Statfeld

    Title:
      Managing Director

    

    

    By:
       /s/
      L.. Spichiger    

        Name:
      L.
      Spichiger

        Title:
      Director

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    CHARTA,
      LLC, as a CP Conduit Purchaser

    

    

    By:
      CITICORP NORTH AMERICA, INC.,

    As
      Attorney-in-Fact

     

    
      	 	
              By:

            	
                 /s/
                Richard C. Simons
                                    

            

    

    Name:
      Richard C. Simons

    Title:
      Vice President

    

    

    

    CITIBANK,
      N.A., as an APA Bank 

     

    
      	 	
              By:

            	
                 /s/
                Richard C. Simons
                                    

            

    

    Name:
      Richard C. Simons

    Title:
      Vice President

    

    

    

    CITICORP
      NORTH AMERICA, INC., 

    as
      a
      Funding Agent

     

    
      	 	
              By:

            	
                 /s/
                Richard C. Simons
                                    

            

    

    Name:
      Richard C. Simons

    Title:
      Vice President

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SHEFFIELD
      RECEIVABLES CORPORATION, 

    as
      a CP
      Conduit Purchaser

    

    

    By:
       /s/
      Janette Lieu    

    Name:
      Janette Lieu

    Title:
      Director

    

    

    BARCLAYS
      BANK PLC, 

    as
      an APA
      Bank and as a Funding Agent

    

    

    By:
       /s/
      Jeffrey Goldberg    

    Name:
      Jeffrey Goldberg

    Title:
      Associate Director

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ATLANTIC
      ASSET SECURITIZATION, LLC, 

    as
      a CP
      Conduit Purchaser

    

    

    By:
       /s/
      Kostantina Kourmpetis   

    Name:
      Kostantina Kourmpetis

    Title:
      Managing Director

    

    

    By:
       /s/
      Sam Pilcer     

    Name:
      Sam
      Pilcer

    Title:
      Managing Director

    

    

    CALYON
      NEW YORK BRANCH, 

    as
      an APA
      Bank and as a Funding Agent

    

    

    By:
       /s/
      Kostantina Kourmpetis   

    Name:
      Kostantina Kourmpetis

    Title:
      Managing Director

    

    

    By:
       /s/
      Sam Pilcer     

    Name:
      Sam
      Pilcer

    Title:
      Managing Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]