Document:

ex_10-4.htm

 

 

 

EXHIBIT 10.4

 

Amended and Restated Pledge and Security Agreement, dated as of March 19, 2010 (this “Pledge Agreement”), by and among PhotoMedex, Inc., a Delaware corporation (the “Borrower”), each of the subsidiaries of the Borrower that may become a party hereto from time to time, whether as an original signatory hereto or as an Additional Grantor (as herein defined) (the Borrower and such subsidiaries of the Borrower, collectively, the “Grantors”), and Perseus Partners VII, L.P., a Delaware limited partnership (the “Secured Party” or, in its capacity as collateral agent on behalf of the Secured Party, the “Collateral Agent”).

 

Introduction

 

The Borrower and the Secured Party entered into a Securities Purchase Agreement dated as of August 4, 2008 (as amended by Amendment No. 1 thereto, dated as of February 27, 2009, and by Amendment No. 2, Consent and Waiver thereto, dated as of March 18, 2010 (“Amendment No. 2”), and as the same may be further amended, modified or supplemented from time to time, the “Purchase Agreement”) pursuant to which the Grantor agreed, among other things, to issue to the Secured Party secured convertible promissory notes (such promissory notes as the same may be amended, modified or supplemented from time to time, together with any promissory notes issued by the Borrower in exchange therefor, the “Convertible Notes”) and providing for the payment of interest in kind in the form of additional secured convertible promissory notes (the “Additional Notes”, and together with the Convertible Notes, the “Notes”) in certain circumstances.

 

Pursuant to the Purchase Agreement, the Borrower and the Secured Party, individually and in its capacity as Collateral agent, entered into a Pledge and Security Agreement, dated as of February 27, 2009 (the “Original Pledge Agreement”) to secure the Original Obligations (as hereinafter defined).

 

Pursuant to Amendment No. 2, the Secured Party has agreed to consent to the Bridge Financing (as defined in Amendment No. 2) and to certain additional amendments, waivers and consents to the obligations of the Borrower under the Purchase Agreement, the Notes and the other Transaction Documents.  In consideration for such amendments, waivers and consents, the Borrower has agreed (i) to cause each of its Subsidiaries organized under the laws of the United States or any State thereof to enter into the Guaranty Agreement, dated the date hereof, among the Borrower, each of its Subsidiaries party thereto and the Secured Party, pursuant to which each such Subsidiary has guaranteed the Obligations (as herein defined) and (ii) to the amendment and restatement of the Original Pledge Agreement in the form hereof.

 

Each Subsidiary of the Borrower that is a party hereto acknowledges that the Borrower and the Subsidiaries are engaged in related businesses and that it has derived, and will continue to derive, substantial benefit from the financing provided to the Borrower by the

 

  

  

  

Secured Party pursuant to the Notes, and that it will derive substantial benefit from the financing provided to the Borrower pursuant to the Bridge Financing.

 

In consideration therefor, each Grantor hereby (i) ratifies and reaffirms the conveyance, assignment, pledge and grant of the Original Collateral (as herein defined) made pursuant to the Original Pledge Agreement to secure the due and punctual payment of the Original Obligations (as herein defined); and (ii) has agreed to pledge, convey, assign and grant in favor of the Collateral Agent on behalf of the Secured Party, a perfected lien on and security interest in the Additional Collateral (as defined herein), pursuant to the terms of this Pledge Agreement in order to secure the Original Obligations and all other monetary obligations, including but not limited to, fees, costs, expenses and indemnities, whether primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding regardless of whether allowed or allowable in such proceeding), of the Grantors now or hereafter due under the Notes, the Purchase Agreement, the Guaranty Agreement, this Pledge Agreement and any other Transaction Document (collectively, the “Additional Obligations” and, together with the Original Obligations, the “Obligations”).

 

NOW, THEREFORE, for and in consideration of the covenants and provisions set forth herein, and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Grantor agrees as follows:

 

 

ARTICLE I

 

 

Definitions

 

Section 1.1 Definitions.

 

(a) The following capitalized terms have the following meanings:

 

“Accounts” means the Original Accounts and the Additional Accounts.

 

“Additional Accounts” has the meaning set forth in Section 2.2(c).

 

“Account Debtors” has the meaning set forth in Section 5.2(a)(vi).

 

“Additional Available Xtrac Intellectual Property” has the meaning set forth in Section 2.2(l).

 

“Additional Collateral” shall have the meaning set forth in Section 2.2.

 

“Additional Copyright Collateral” means all Copyrights of any Grantor, whether now owned or hereafter acquired by such Grantor, other than the Original Copyright Collateral.

 

“Additional Equipment” has the meaning set forth in Section 2.2(a).

 

“Additional Financial Assets” has the meaning set forth in Section 2.2(i).

 

  

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“Additional General Intangibles” has the meaning set forth in Section 2.2(f).

 

“Additional Insurance Rights” has the meaning set forth in Section 2.2(h).

 

“Additional Intellectual Property” has the meaning set forth in Section 2.2(g).

 

“Additional Inventory” has the meaning set forth in Section 2.2(b).

 

“Additional Investment Property” has the meaning set forth in Section 2.2(d).

 

“Additional Notes” has the meaning set forth in the introduction section hereof.

 

“Additional Obligations” shall have the meaning set forth in the introduction section hereof.

 

“Additional Other Property” has the meaning set forth in Section 2.2(g).

 

“Additional Patent Collateral” means all Patents, whether now owned or hereafter acquired by any Grantor, other than the Original Patent Collateral.

 

“Additional Pledged Stock” has the meaning set forth in Section 2.2(e)(i).

 

“Additional Proceeds” has the meaning set forth in Section 2.2(j).

 

“Additional Stock Collateral” has the meaning set forth in Section 2.2(e)(iii).

 

“Additional Trademark Collateral” means all Trademarks now owned or hereafter acquired by any Grantor other than the Original Trademark Collateral.  Notwithstanding the foregoing, the Additional Trademark Collateral shall not include any Trademark which would be rendered invalid, abandoned, void or unenforceable by reason of its being included as part of the Additional Trademark Collateral.

 

“CIT” means CIT Healthcare, LLC, as agent under the CIT Agreement.

 

“CIT Agreement” means the Master Term Loan and Security Agreement, dated as of December 31, 2007, as amended to date, by and among the Borrower, CIT, and the lenders set forth therein, as the same may be amended, amended and restated, modified or supplemented from time to time.

 

“CIT Encumbered Collateral” means the Xtrac Assets in which the Borrower has granted or may hereafter grant a security interest to CIT from time to time pursuant to the CIT Agreement; provided, that any such Xtrac Asset shall cease to constitute “CIT Encumbered Collateral” at such time as all security interests in favor of CIT are released therefrom.

 

“Code” means the Uniform Commercial Code as in effect from time to time in the State of New York, together with any other successor or applicable adoption of the Uniform Commercial Code in any applicable jurisdiction.

 

  

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“Collateral” means the Original Collateral and the Additional Collateral.

 

“Collateral Agent” has the meaning set forth in the first line hereof.

 

“Control” shall mean:  (1) with respect to any Deposit Accounts, control within the meaning of Section 9-104 of the Code, (2) with respect to any Securities Accounts, Security Entitlements, Commodity Contract or Commodity Account, control within the meaning of Section 9-106 of the Code, (3) with respect to any uncertificated securities, control within the meaning of Section 8-106(c) of the Code, (4) with respect to any certificated security, control within the meaning of Section 8-106(a) or (b) of the Code, (5) with respect to any electronic Chattel Paper, control within the meaning of Section 9-105 of the Code, and (6) with respect to Letter of Credit Rights, control within the meaning of Section 9-107 of the Code.

 

“Convertible Notes” has the meaning set forth in the introduction section hereof.

 

“Copyright Collateral” means the Original Copyright Collateral and the Additional Copyright Collateral.

 

“Copyrights” means, collectively, (i) all copyrights, copyright registrations and applications for copyright registrations, (ii) all renewals and extensions of all copyrights, copyright registrations and applications for copyright registration and (iii) all rights, now existing or hereafter coming into existence, (x) to all income, royalties, damages and other payments (including in respect of all past, present or future infringements) now or hereafter due or payable under or with respect to any of the foregoing, (y) to sue for all past, present and future infringements with respect to any of the foregoing and (z) otherwise accruing under or pertaining to any of the foregoing throughout the world.

 

“Equipment” means the Original Equipment and the Additional Equipment.

 

“Equity Rights” means, with respect to any person, any outstanding subscriptions, options, warrants, commitments, preemptive rights or agreements of any kind (including any stockholders’ or voting trust arrangements) for the issuance, sale, registration or voting of, or outstanding securities convertible into, any additional shares of capital stock of any class, or partnership or other ownership interests of any type in, such person.

 

“Financial Assets” means the Original Financial Assets and the Additional Financial Assets.

 

“Financing Statements” has the meaning set forth in Section 2.3(a).

 

“General Intangibles” means the Original General Intangibles and the Additional General Intangibles.

 

“Grantor” has the meaning set forth in the first line hereof.

 

  

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“Insurance Rights” means the Original Insurance Rights and the Additional Insurance Rights.

 

“Intellectual Property” means the original Intellectual Property, the Additional Intellectual Property and any Additional Available Xtrac Intellectual Property.

 

“Inventory” means the Original Inventory and the Additional Inventory.

 

“Investment Property” means the Original Investment Property and the Additional Investment Property.

 

“Notes” has the meaning set forth in the introduction section hereof.

 

“Obligations” has the meaning set forth in the introduction section hereof.

 

“Original Accounts” has the meaning set forth in Section 2.1(c).

 

“Original Collateral” has the meaning set forth in Section 2.1.

 

“Original Copyright Collateral” means all Copyrights that arise primarily out of, or are primarily related to, the Skin Care Business or the PT Business, whether now owned or hereafter acquired by the Borrower.

 

“Original Equipment” has the meaning set forth in Section 2.1(a).

 

“Original Financial Assets” has the meaning set forth in Section 2.1(i).

 

“Original General Intangibles” has the meaning set forth in Section 2.1(f).

 

“Original Insurance Rights”) has the meaning set forth in Section 2.1(h).

 

“Original Intellectual Property” means all Original Copyright Collateral, all Original Patent Collateral and all Original Trademark Collateral, together with (a) all inventions, processes, production methods, proprietary information, know-how and trade secrets; (b) all licenses or user or other agreements granted to the Borrower with respect to any of the foregoing, in each case whether now or hereafter owned or used, including all licenses or other agreements with respect to the Original Copyright Collateral, the Original Patent Collateral or the Original Trademark Collateral listed; (c) all information, customer lists, identification of suppliers, data, plans, blueprints, specifications, designs, drawings, recorded knowledge, surveys, engineering reports, test reports, manuals, materials standards, processing standards, performance standards, catalogs, computer and automatic machinery software and programs; (d) all field repair data, sales data and other information relating to sales or service of products now or hereafter manufactured; (e) all accounting information and all media in which or on which any information or knowledge or data or records may be recorded or stored and all computer programs used for the compilation or printout of such information, knowledge, records or data; (f) all governmental approvals now held or hereafter obtained by the Borrower in respect of any

 

  

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of the foregoing; and (g) all causes of action, claims and warranties now owned or hereafter acquired by the Borrower in respect of any of the foregoing; in each case that arise primarily out of, or are primarily related to, the Skin Care Business or the PT Business.  It is understood that Original Intellectual Property shall include all of the foregoing owned or acquired by the Borrower on a worldwide basis.

 

“Original Inventory” has the meaning set forth Section 2.1(b).

 

“Original Investment Property” has the meaning set forth in Section 2.1(d).

 

“Original Obligations” means, collectively, (a) any current or future principal and interest (including, without limitation, interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Notes, when and as due, whether at maturity, by acceleration or otherwise, and (b) all other monetary obligations, including but not limited to, fees, costs, expenses and indemnities, whether primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding regardless of whether allowed or allowable in such proceeding), of the Borrower now or hereafter due under the Notes, the Purchase Agreement, this Pledge Agreement and any other Transaction Document.

 

“Original Other Property” has the meaning set forth in Section 2.1(g).

 

“Original Patent Collateral” means all Patents that arise primarily out of, or are primarily related to, the Skin Care Business or the PT Business, whether now owned or hereafter acquired by the Borrower.

 

“Original Pledged Stock” has the meaning set forth in Section 2.1(e)(i).

 

“Original Proceeds” has the meaning set forth in Section 2.1(j).

 

“Original Stock Collateral” has the meaning set forth in Section 2.1(e)(iii) hereof.

 

“Original Trademark Collateral” means all Trademarks that arise primarily out of, or are primarily related to, the Skin Care Business or the PT Business, whether now owned or hereafter acquired by the Borrower.  Notwithstanding the foregoing, the Original Trademark Collateral shall not include any Trademark which would be rendered invalid, abandoned, void or unenforceable by reason of its being included as part of the Original Trademark Collateral.

 

“Patent Collateral” means the Original Patent Collateral and the Additional Patent Collateral.

 

“Patents” means, collectively, (i) all patents and patent applications, (ii) all reissues, divisions, continuations, renewals, extensions and continuations-in-part of all patents or patent applications and (iii) all rights, now existing or hereafter coming into existence, (x) to all income, royalties, damages, and other payments (including in respect of all past, present and future infringements) now or hereafter due or payable under or with respect to any of the foregoing, (y) to sue for all past, present and future infringements with respect to any of the

 

  

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foregoing and (z) otherwise accruing under or pertaining to any of the foregoing throughout the world, including all inventions and improvements described or discussed in all such patents and patent applications.

 

“Perfection Certificate” means the Perfection Certificate, dated as of the date hereof, substantially in the form of Annex II hereto, delivered to the Collateral Agent by the Grantors as the same shall be amended, modified or supplemented pursuant to the terms hereof.

 

“Pledge Agreement” has the meaning set forth in the first line hereof.

 

“Pledged Stock” means the Original Pledged Stock and the Additional Pledged Stock.

 

“Proceeds” means the Original Proceeds and the Additional Proceeds.

 

“ProCyte” means ProCyte Corporation, a Washington corporation.

 

“ProCyte Assets” has the meaning set forth in Section 3.1(g).

 

“PT Assets” has the meaning set forth in Section 3.1(h).

 

“PT Business” means the (i) business of the Borrower as it is currently conducted through its subsidiaries PTL and PTI consisting of the development, marketing and sale of (A) non-laser light devices for the treatment for clinical and non-clinical dermatological conditions, including, but not limited to, the Omnilux, Lumiere, New-U and Clear-U systems (but excluding the Borrower’s VTRACTM excimer lamp system which has not been part of the business of PTL or PTI), and (B) Tanology brand skin care products; and (ii) such other business as may be conducted from time to time by PTI, or PTL, or their respective successors or assigns.

 

“PTI” means Photo Therapeutics, Inc., a Delaware corporation.

 

“PTL” means Photo Therapeutics Limited, a company organized under the laws of England and Wales.

 

“Purchase Agreement” has the meaning set forth in the introduction section hereof.

 

“Restricted Xtrac Intellectual Property” means, to the extent subject to the restrictions set forth in Section 5(a) of the Omnibus Amendment made as of September 30, 2008, to the CIT Agreement, all Intellectual Property (as defined in such Section 5(a)) related to or in connection with the Xtrac Laser Equipment.

 

“Secured Party” has the meaning set forth in the first line hereof.

 

“Skin Care Business” means (i) the business of the Borrower and its subsidiaries consisting of the development, formulation, marketing and sale of skin and hair care products (other than any products that are within the scope of the PT Business) for the dermatology, plastic surgery, cosmetic surgery, wound care and spa markets and any other business

 

  

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historically described by the Borrower as a part of its ProCyte business unit; and (ii) such other business as may be conducted from time to time by ProCyte or its successors or assigns.

 

“Stock Collateral” means the Original Stock Collateral and the Additional Stock Collateral.

 

“Trademark Collateral” means the Original Trademark Collateral and the Additional Trademark Collateral.

 

“Trademarks” means, collectively, (a) all trade names, trademarks and service marks, logos, trademark and service mark registrations and applications for trademark and service mark registrations, (b) all renewals and extensions of any of the foregoing and (c) all rights, now existing or hereafter coming into existence, (i) to all income, royalties, damages and other payments (including in respect of all past, present and future infringements) now or hereafter due or payable under or with respect to any of the foregoing, (ii) to sue for all past, present and future infringements with respect to any of the foregoing and (iii) otherwise accruing under or pertaining to any of the foregoing throughout the world, together, in each case, with the product lines and goodwill of the business connected with the use of, or otherwise symbolized by, each such trade name, trademark and service mark.

 

“Xtrac Assets” means (i) all Xtrac Transaction Documents, (ii) all Xtrac Payments, (iii) all Xtrac Laser Equipment and other collateral to the extent securing and/or related in any way to the Xtrac Transactions, together with all additions, replacements, substitutions, parts, repairs, accessories, accessions and attachments to such Xtrac Laser Equipment, (iv) all deposit accounts into which the Xtrac Payments are delivered and/or deposited and (v) all proceeds of all of the foregoing, including insurance proceeds.

 

“Xtrac Laser Equipment” means the Borrower’s proprietary excimer laser equipment and such other personal property as is incorporated thereon or therewith.

 

“Xtrac Obligor” means each lessee, borrower, consignee, guarantor, pledgor and/or each other party named in an Xtrac Transaction Document that is obligated to make payments on any Xtrac Transaction or Xtrac Transaction Document.

 

“Xtrac Payments” means all payments due and to become due under all Xtrac Transaction Documents or otherwise due from the Xtrac Obligors for the purchase of consumables or accessories or for treatment access codes.

 

“Xtrac Transaction” means the lease and consignment transactions between the Borrower and dermatologists or other commercial users with respect to the Xtrac Laser Equipment.

 

“Xtrac Transaction Documents” means the documents, including commercial usage agreements, equipment leases, consignments, promissory notes, security agreements, guarantees, and all other agreements, documents or instruments evidencing a payment obligation under, providing security for, or otherwise relating to, an Xtrac Transaction.

 

  

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(b) Capitalized terms used in this Pledge Agreement and not defined herein shall have the meanings assigned thereto in the Purchase Agreement.

 

 

ARTICLE II

 

 

Security Interests

 

Section 2.1 Ratification of Original Security Interest in Original Collateral.  The Borrower hereby ratifies and reaffirms the conveyance, assignment, pledge and grant made to the Collateral Agent pursuant to the Original Pledge Agreement and, as security for the Obligations, the Borrower so conveys, assigns, pledges and grants a continuing and unconditional security interest to the Collateral Agent for itself and the Secured Party, its successors and assigns, in and to all of the following:

 

(a) all equipment (including all “Equipment” as defined in Section 9-102(a)(33) of the Code), machinery, vehicles, fixtures, improvements, supplies, office furniture, and fixed assets, all as now owned or hereafter acquired by the Borrower or in which the Borrower has or hereafter acquires any interest, in each case that arise primarily out of, or are primarily related to, the Skin Care Business or the PT Business and any items substituted therefor as replacements and any additions or accessions thereto (all of the property described in this clause (a) being hereinafter collectively referred to as “Original Equipment”);

 

(b) all goods (including all “Goods” as defined in Section 9-102(a)(44) of the Code) and all inventory (including all “Inventory” as defined in Section 9-102(a)(48) of the Code) of the Borrower, now owned or hereafter acquired by the Borrower or in which the Borrower has or hereafter acquires any interest, in each case that arise primarily out of, or are primarily related to, the Skin Care Business or the PT Business, including but not limited to, raw materials, scrap Inventory, work in process, products, packaging materials, finished Goods, all documents of title, Chattel Paper and other instruments covering the same and all substitutions therefor and additions thereto (all of the property described in this clause (b) being hereinafter collectively referred to as “Original Inventory”);

 

(c) all present and future accounts in which the Borrower has or hereafter acquires any interest (including all “Accounts” as defined in Section 9-102(a)(2) of the Code), contract rights (including all rights to receive payments and other rights under all Equipment and other leasing contracts) and rights to payment and rights or accounts receivable evidencing or representing indebtedness due or to become due the Borrower on account of Goods sold or leased or services rendered, claims, Instruments and other general intangibles (including tax refunds, royalties and all other rights to the payment of money of every nature and description), including but not limited to, any such right evidenced by Chattel Paper, and all liens, securities, guaranties, remedies, security interests and privileges pertaining thereto, in each case that arise primarily out of, or are primarily related to, the Skin Care Business or the PT Business (all of the property described in this clause (c) being hereinafter collectively referred to as “Original Accounts”);

 

  

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(d) all investment property now owned or hereafter acquired by the Borrower (including all “Investment Property” as defined in Section 9-102(a)(49) of the Code) that arises primarily out of, or is primarily related to, the Skin Care Business or the PT Business, including, without limitation, all securities (certificated and uncertificated), securities accounts (including all “Security Accounts” as defined in Section 8-501(a) of the Code), securities entitlements (including all “Securities Entitlements” as defined in Section 8-102(a)(17) of the Code), commodity contracts (including all “Commodity Contracts” as defined in Section 9-102(a)(15) of the Code) and commodity accounts (including all “Commodity Accounts” as defined in Section 9-102(a)(14) of the Code) (all of the property described in this clause (d) being hereinafter collectively referred to as “Original Investment Property”);

 

(e) (i) (A) all of the shares of capital stock, membership units or other ownership interests of each of ProCyte and PTI, whether certificated or uncertificated, now owned or hereafter acquired by the Borrower, together with in each case any certificates representing the same, and (B) 65% of the shares of capital stock, membership units or other ownership interests of PTL, whether certificated or uncertificated, now owned or hereafter acquired by the Borrower, together with in each case the certificates representing the same (all of the property described in this clause (e) being hereinafter collectively referred to as the “Original Pledged Stock”);

 

(ii) all shares, securities, moneys or property representing a dividend on, or a distribution or return of capital in respect of any of the Original Pledged Stock, resulting from a stock split, revision, reclassification or other like change of any of the Original Pledged Stock or otherwise received in exchange for any of the Original Pledged Stock and all Equity Rights issued to the holders of, or otherwise in respect of, any of the Original Pledged Stock; and

 

(iii) without affecting the obligations of the Borrower under any provision prohibiting such action under any Transaction Document, in the event of any consolidation or merger in which any issuer of any Original Pledged Stock is not the surviving Person, all shares, units or other interests held by the Borrower of each class of the capital stock, membership units or other ownership interests of the successor Person (unless such successor Person is the Borrower itself) formed by or resulting from such consolidation or merger (or, as to PTL, 65% of such resulting property) (collectively, and together with the property described in clauses (i) and (ii) above, the “Original Stock Collateral”);

 

(f) all general intangibles now owned or hereafter acquired by the Borrower or in which the Borrower has or hereafter acquires any interest (including all “General Intangibles” as defined in Section 9-102(a)(42) of the Code), in each case that arise primarily out of, or are primarily related to, the Skin Care Business or the PT Business, including but not limited to, payment intangibles (including all “Payment Intangibles” as defined in Section 9-102(a)(61) of the Code), choses in action and causes of action and all licenses and permits, contract rights and all rights to receive payments and other rights under all Equipment and other leasing contracts, instruments and documents owned or used by the Borrower, and any goodwill relating thereto) (all of the property described in this clause (f) being hereinafter collectively referred to as “Original General Intangibles”);

 

  

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(g) all other property owned by the Borrower or in which the Borrower has or hereafter acquires any interest that arises primarily out of, or is primarily related to, the Skin Care Business or the PT Business, wherever located, and of whatever kind or nature, tangible or intangible, including all Original Intellectual Property (all of the property described in this clause (g) being hereinafter collectively referred to as “Original Other Property”);

 

(h) all insurance policies of any kind maintained in effect by the Borrower, now existing or hereafter acquired, under which and to the extent any of the property referred to in clauses (a) through (g) above is insured, including but not limited to, any proceeds payable to the Borrower pursuant to such policies attributable to such property referred to in (a)-(g) above (all of the property described in this clause (g) being hereinafter collectively referred to as the “Original Insurance Rights”);

 

(i) all moneys, cash collateral, chattel paper (including all “Chattel Paper” as defined in Section 9-102(a)(11) of the Code), checks, notes, bills of exchange, documents of title, money orders, negotiable instruments, commercial paper, and other securities, letters of credit (including all “Letter-of-Credit Rights” as defined in Section 9-102(a)(51) of the Code), supporting obligations (including all “Supporting Obligations” as defined in Section 9-102(a)(77) of the Code), instruments (including all “Instruments” as define in Section 9-102(a)(47) of the Code), documents (including all “Documents” as defined in Section 9-102(a)(30) of the Code), deposit accounts (including all “Deposit Accounts” as defined in Section 9-102(a)(29) of the Code), deposits and credits from time to time whether or not in the possession of or under the control of the Collateral Agent, in each case that arise primarily out of, or are primarily related to, the Skin Care Business or the PT Business (all of the property described in this clause (i) being hereinafter collectively referred to as “Original Financial Assets”); and

 

(j) any consideration received when all or any part of the property referred to in clauses (a) through (i) above is sold, transferred, exchanged, leased, collected or otherwise disposed of, or any value received as a consequence of possession thereof, including but not limited to, all products, proceeds (including all “Proceeds” as defined in Section 9-102(a)(64) of the Code), cash, negotiable instruments and other instruments for the payment of money, Chattel Paper, security agreements or other documents, insurance proceeds or proceeds of other proceeds now or hereafter owned by the Borrower or in which the Borrower has an interest (all of the property described in this clause (j) being hereinafter collectively referred to as “Original Proceeds”).

 

The property set forth in clauses (a) through (j) of the preceding sentence, together with property of a similar nature that arise primarily out of, or are primarily related to, the Skin Care Business or the PT Business, is referred to herein as the “Original Collateral”.

 

Notwithstanding the foregoing, the security interest granted herein shall not extend to and the term “Original Collateral” shall not include any property, right or interest to the extent that the grant of a security interest therein would be contrary to applicable law.

 

Section 2.2 Grant of Security Interest in Additional Collateral.  As security for the Obligations, each Grantor hereby conveys, assigns, pledges and grants a continuing and

 

  

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unconditional security interest to the Collateral Agent for itself and the Secured Party, its successors and assigns, in and to all of the following:

 

(a) all equipment (including all “Equipment” as defined in Section 9-102(a)(33) of the Code), machinery, vehicles, fixtures, improvements, supplies, office furniture, and fixed assets, all as now owned or hereafter acquired by such Grantor or in which such Grantor has or hereafter acquires any interest and any items substituted therefor as replacements and any additions or accessions thereto, in each case other than the Original Equipment (all of the property described in this clause (a) being hereinafter collectively referred to as “Additional Equipment”);

 

(b) all goods (including all “Goods” as defined in Section 9-102(a)(44) of the Code) and all inventory (including all “Inventory” as defined in Section 9-102(a)(48) of the Code) of such Grantor, now owned or hereafter acquired by such Grantor or in which such Grantor has or hereafter acquires any interest, including but not limited to, raw materials, scrap Inventory, work in process, products, packaging materials, finished Goods, all documents of title, Chattel Paper and other instruments covering the same and all substitutions therefor and additions thereto, in each case other than the Original Inventory (all of the property described in this clause (a) being hereinafter collectively referred to as “Additional Inventory”);

 

(c) all present and future accounts in which such Grantor has or hereafter acquires any interest (including all “Accounts” as defined in Section 9-102(a)(2) of the Code), contract rights (including all rights to receive payments and other rights under all Equipment and other leasing contracts) and rights to payment and rights or accounts receivable evidencing or representing indebtedness due or to become due such Grantor on account of Goods sold or leased or services rendered, claims, Instruments and other general intangibles (including tax refunds, royalties and all other rights to the payment of money of every nature and description), including but not limited to, any such right evidenced by Chattel Paper, and all liens, securities, guaranties, remedies, security interests and privileges pertaining thereto, in each case other than the Original Accounts (all of the property described in this clause (c) being hereinafter collectively referred to as “Additional Accounts”);

 

(d) all investment property now owned or hereafter acquired by such Grantor (including all “Investment Property” as defined in Section 9-102(a)(49) of the Code), including, without limitation, all securities (certificated and uncertificated), securities accounts (including all “Security Accounts” as defined in Section 8-501(a) of the Code), securities entitlements  (including all “Securities Entitlements” as defined in Section 8-102(a)(17) of the Code), commodity contracts (including all “Commodity Contracts” as defined in Section 9-102(a)(15) of the Code) and commodity accounts (including all “Commodity Accounts” as defined in Section 9-102(a)(14) of the Code), in each case other than the Original Investment Property (all of the property described in this clause (a) being hereinafter collectively referred to as “Additional Investment Property”);

 

(e) (i) (A) all of the shares of capital stock, membership units or other ownership interests of each Subsidiary of such Grantor that is formed under the laws of the United States or any State thereof, whether certificated or uncertificated, now owned or hereafter acquired by such Grantor, together with in each case any certificates representing the same

 

  

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(excluding the shares of capital stock of ProCyte and PTI), and (B) 65% of the shares of capital stock, membership units or other ownership interests of each Subsidiary of such Grantor that is formed under the laws of any jurisdiction other than the United States or any State thereof, whether certificated or uncertificated, now owned or hereafter acquired by such Grantor, together with in each case the certificates representing the same (excluding the shares of capital stock of PTL) (all of the property described in this clause (f) being hereinafter collectively referred to as the “Additional Pledged Stock”);

 

(ii) all shares, securities, moneys or property representing a dividend on, or a distribution or return of capital in respect of any of the Additional Pledged Stock, resulting from a stock split, revision, reclassification or other like change of any of the Additional Pledged Stock or otherwise received in exchange for any of the Additional Pledged Stock and all Equity Rights issued to the holders of, or otherwise in respect of, any of the Additional Pledged Stock; and

 

(iii) without affecting the obligations of such Grantor under any provision prohibiting such action under any Transaction Document, in the event of any consolidation or merger in which any issuer of any Additional Pledged Stock is not the surviving Person, all shares, units or other interests held by such Grantor of each class of the capital stock, membership units or other ownership interests of the successor Person (unless such successor Person is such Grantor itself) formed by or resulting from such consolidation or merger (or, as to any issuer formed under the laws of any jurisdiction other than the United States or any State thereof, 65% of such resulting property) (collectively, and together with the property described in clauses (i) and (ii) above, the “Additional Stock Collateral”);

 

(f) all general intangibles now owned or hereafter acquired by such Grantor or in which such Grantor has or hereafter acquires any interest (including all “General Intangibles” as defined in Section 9-102(a)(42) of the Code), including but not limited to, payment intangibles (including all “Payment Intangibles” as defined in Section 9-102(a)(61) of the Code), choses in action and causes of action and all licenses and permits, contract rights and all rights to receive payments and other rights under all Equipment and other leasing contracts, instruments and documents owned or used by such Grantor, and any goodwill relating thereto), in each case other than the Original General Intangibles provided, however, that the Collateral granted by this clause (f) shall not include Restricted Xtrac Intellectual Property or Original Intellectual Property (all of the property described in this clause (f) being hereinafter collectively referred to as “Additional General Intangibles”);

 

(g) all of the following of any Grantor: all Additional Copyright Collateral, all Additional Patent Collateral and all Additional Trademark Collateral, together with (i) all inventions, processes, production methods, proprietary information, know-how and trade secrets; (ii) all licenses or user or other agreements granted to such Grantor with respect to any of the foregoing, in each case whether now or hereafter owned or used, including all licenses or other agreements with respect to the Additional Copyright Collateral, the Additional Patent Collateral or the Additional Trademark Collateral listed; (iii) all information, customer lists, identification of suppliers, data, plans, blueprints, specifications, designs, drawings, recorded knowledge, surveys, engineering reports, test reports, manuals, materials standards, processing standards, performance standards, catalogs, computer and automatic machinery software and programs;

 

  

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(iv) all field repair data, sales data and other information relating to sales or service of products now or hereafter manufactured; (v) all accounting information and all media in which or on which any information or knowledge or data or records may be recorded or stored and all computer programs used for the compilation or printout of such information, knowledge, records or data; (vi) all governmental approvals now held or hereafter obtained by such Grantor in respect of any of the foregoing; and (vii) all causes of action, claims and warranties now owned or hereafter acquired by such Grantor in respect of any of the foregoing; provided, however, that the Collateral granted by this clause (g) shall not include Restricted Xtrac Intellectual Property or Original Intellectual Property (all of the property described in this clause (g) being hereinafter collectively referred to as “Additional Intellectual Property”);

 

(h) all other property owned by such Grantor or in which such Grantor has or hereafter acquires any interest, wherever located, and of whatever kind or nature, tangible or intangible, but in each case other than the Original Other Property; provided, however, that the Collateral granted by this clause (h) shall not include Restricted Xtrac Intellectual Property or Original Intellectual Property (all of the property described in this clause (h) being hereinafter collectively referred to as “Additional Other Property”);

 

(i) all insurance policies of any kind maintained in effect by such Grantor, now existing or hereafter acquired, under which and to the extent any of the property referred to in clauses (a) through (g) above is insured, including but not limited to, any proceeds payable to such Grantor pursuant to such policies attributable to such property referred to in (a)-(g) above (all of the property described in this clause (i) being hereinafter collectively referred to as the “Additional Insurance Rights”);

 

(j) all moneys, cash collateral, chattel paper (including all “Chattel Paper” as defined in Section 9-102(a)(11) of the Code), checks, notes, bills of exchange, documents of title, money orders, negotiable instruments, commercial paper, and other securities, letters of credit (including all “Letter-of-Credit Rights” as defined in Section 9-102(a)(51) of the Code), supporting obligations (including all “Supporting Obligations” as defined in Section 9-102(a)(77) of the Code), instruments (including all “Instruments” as define in Section 9-102(a)(47) of the Code), documents (including all “Documents” as defined in Section 9-102(a)(30) of the Code), deposit accounts (including all “Deposit Accounts” as defined in Section 9-102(a)(29) of the Code), deposits and credits from time to time whether or not in the possession of or under the control of the Collateral Agent, in each case other than the Original Financial Assets (all of the property described in this clause (j) being hereinafter collectively referred to as “Additional Financial Assets”);

 

(k) all now owned or hereafter acquired Xtrac Assets, wherever located and of whatever kind or nature, tangible or intangible, that do not constitute CIT Encumbered Collateral (all of the property described in this clause (k) being hereinafter collectively referred to as “Additional Xtrac Collateral”);

 

(l) automatically and immediately, without further action by or notice to any party, upon such Intellectual Property ceasing to constitute Restricted Xtrac Intellectual Property, any now owned or hereafter acquired Intellectual Property excluded from the definition of “Additional Intellectual Property” on account of having constituted Restricted Xtrac Intellectual

 

  

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Property at any time (all of the property described in this clause (l) being hereinafter collectively referred to as “Additional Available Xtrac Intellectual Property”);

 

(m) automatically and immediately, without further action by or notice to any party, upon such Xtrac Assets ceasing to constitute CIT Encumbered Collateral, any now owned or hereafter acquired Xtrac Assets, wherever located and of whatever kind or nature, tangible or intangible,  excluded from the definition of “Additional Xtrac Collateral” on account of having constituted CIT Encumbered Collateral at any time (all of the property described in this clause (m) being hereinafter collectively referred to as “Additional Available Xtrac Collateral”); and

 

(n) any consideration received when all or any part of the property referred to in clauses (a) through (m) above is sold, transferred, exchanged, leased, collected or otherwise disposed of, or any value received as a consequence of possession thereof, including but not limited to, all products, proceeds (including all “Proceeds” as defined in Section 9-102(a)(64) of the Code), cash, negotiable instruments and other instruments for the payment of money, Chattel Paper, security agreements or other documents, insurance proceeds or proceeds of other proceeds now or hereafter owned by such Grantor or in which such Grantor has an interest (all of the property described in this clause (m) being hereinafter collectively referred to as “Additional Proceeds”).

 

The property set forth in clauses (a) through (n) of the preceding sentence, together with all other property of a similar nature, but excluding any and all Original Collateral, is referred to herein as the “Additional Collateral”.

 

Notwithstanding the foregoing, the security interest granted herein shall not extend to and the term “Additional Collateral” shall not include (i) any Restricted Xtrac Intellectual Property, (ii) any CIT Encumbered Collateral or (iii) any any property, right or interest to the extent that the grant of a security interest therein would be contrary to applicable law.

 

Section 2.3 Perfection of Security Interests.

 

(a) Each Grantor hereby authorizes the Collateral Agent to file a financing statement or financing statements, instrument or other applicable document, without the signature of such Grantor, and naming such Grantor as debtor and the Collateral Agent as Secured Party (collectively, the “Financing Statements”) describing the Collateral in any and all jurisdictions where, and with any and all governmental authorities with whom, the Collateral Agent reasonably deems such filing to be necessary or appropriate including, without limitation, the jurisdiction of the debtor’s location for purposes of the Code, the United States Patent and Trademark Office and the United States Copyright Office (or any successor office or any similar office in any country).  Each Grantor will reimburse the Collateral Agent for any and all costs, charges and expenses (including fees of counsel) incurred in connection with such filings.  For purposes of this Section 2.3(a), the Financing Statements shall be deemed to include any amendment, modification, assignment, continuation statement or other similar instrument consistent with the rights granted to the Secured Party under the Transaction Documents.

 

  

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(b) Each Grantor shall have possession of the Collateral of such Grantor, except as expressly otherwise provided in this Pledge Agreement or where the Collateral Agent chooses to perfect its security interest by possession in addition to the filing of a Financing Statement.  Where Collateral is in the possession of a third party, the applicable Grantor will join with the Collateral Agent in notifying the third party of the Collateral Agent’s security interest therein and, upon the request of the Collateral Agent, use its commercially reasonable efforts to obtain an acknowledgement from the third party that it is holding the Collateral for the benefit of the Secured Party.

 

With respect to any Deposit Accounts, Securities Accounts, Security Entitlements, Commodity Accounts, Commodity Contracts and electronic Chattel Paper included in the Collateral, each Grantor shall ensure that the Collateral Agent has Control thereof, subject to the provisions of Section 1.6(c) of Amendment No. 2.  With respect to any Securities Accounts or Securities Entitlements, such Control shall be accomplished by  the Grantor causing the Securities Intermediary (as defined in Section 8-102(a)(14) of the Code) maintaining such Securities Account or Security Entitlement to enter into an agreement substantially in the form of Annex III hereto (or such other agreement in form and substance reasonably satisfactory to the Collateral Agent) pursuant to which the applicable Securities Intermediary shall agree to comply with the Collateral Agent’s Entitlement Orders (as defined in Section 8-102(a)(8) of the Code) without further consent by such Grantor.  With respect to any Deposit Account, each Grantor shall cause the depositary institution maintaining such account to enter into an agreement substantially in the form of Annex IV hereto (or such other agreement in form and substance reasonably satisfactory to the Collateral Agent), pursuant to which the applicable Bank (as defined in Section 9-102(a)(8) of the Code) shall agree to comply with the Collateral Agent’s instructions with respect to disposition of funds in the Deposit Account without further consent by such Grantor.  With respect to any Commodity Accounts or Commodity Contracts each Grantor shall cause Control to be established in favor of the Collateral Agent in a manner reasonably acceptable to the Collateral Agent.  With respect to any uncertificated Security included in the Collateral (other than any uncertificated Securities credited to a Securities Account), each Grantor shall cause the issuer of such uncertificated Security to either (i) register the Collateral Agent as the registered owner thereof on the books and records of the issuer or (ii) execute an agreement in form and substance reasonably satisfactory to the Collateral Agent, pursuant to which such issuer agrees to comply with the Collateral Agent’s instructions with respect to such uncertificated Security without further consent by such Grantor.  With respect to any Letter of Credit Rights included in the Collateral (other than any Letter of Credit Rights constituting a supporting obligation for a receivable in which the Collateral Agent has a valid and perfected security interest), Grantor shall ensure that Collateral Agent has Control thereof by obtaining the written consent of each issuer of each related letter of credit to the assignment of the proceeds of such letter of credit to the Collateral Agent.

 

(c) The Grantors will not create any Chattel Paper that would constitute Collateral without a legend on such Chattel Paper reasonably acceptable to the Collateral Agent indicating that the Collateral Agent has a secured interest in such Chattel Paper.

 

(d) Each Grantor shall, upon such Grantor’s acquiring, or otherwise becoming entitled to the benefits of, any Copyright Collateral, Patent Collateral, Trademark Collateral (or associated goodwill) or other Intellectual Property or upon or prior to such Grantor’s filing,

 

  

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either directly or through any agent, licensee or other designee, of any application with any governmental authority for any Copyright Collateral, Patent Collateral, Trademark Collateral, or other Intellectual Property, in each case after the date hereof, execute and deliver such contracts, agreements and other instruments as the Collateral Agent may reasonably request, subject to any other applicable provision of this Pledge Agreement, to evidence, validate, perfect and establish the priority of the security interest granted by this Pledge Agreement except with respect to Permitted Liens in such and any related Intellectual Property.

 

(e) The Grantors shall deliver and pledge to the Collateral Agent any and all certificates representing the Pledged Stock, accompanied by undated stock powers duly executed in blank.

 

(f) Each Grantor shall upon the acquisition after the date hereof by such Grantor of any Stock Collateral, promptly either (x) transfer and deliver to the Collateral Agent all such Stock Collateral (together with the certificates representing such Stock Collateral securities duly endorsed in blank or accompanied by undated stock powers duly executed in blank) or (y) take such other action as the Collateral Agent shall deem reasonably necessary or appropriate to perfect, and establish the priority of, the security interest granted by this Pledge Agreement in such Stock Collateral.

 

(g) Each Grantor shall (i) as soon as practicable (and in any event within 15 days) after the date hereof with respect to any Xtrac Laser Equipment within the Additional Xtrac Collateral as of the date hereof, and (ii) as soon as practicable (and in any event within 15 days) after the acquisition of any new Xtrac Laser Equipment within the Additional Xtrac Collateral (or any Xtrac Laser Equipment becoming Additional Available Xtrac Collateral), file a UCC-1 Financing Statement for each Xtrac Obligor (in the state or jurisdiction of residence for such Xtrac Obligor) providing notice that the Xtrac Laser Equipment remain the property of such Grantor and subject to a lien in favor of the Collateral Agent hereunder.

 

Section 2.4 Intellectual Property.  For the purpose of enabling and to the extent necessary to enable the Collateral Agent to exercise its rights, remedies, powers and privileges under Article 5 at such time or times as the Collateral Agent shall be lawfully entitled to exercise such rights, remedies, powers and privileges, and for no other purpose, each Grantor hereby grants to the Collateral Agent, to the extent assignable, an irrevocable, nonexclusive license (exercisable without payment of royalty or other compensation to such Grantor) to use, assign, license or sublicense any of the Intellectual Property of such Grantor, together with reasonable access to all media in which any of the licensed items may be recorded or stored and to all computer programs used for the compilation or printout of such items. This license shall be exercisable only after the occurrence and during the continuance of an Event of Default and shall terminate upon full and final payment, performance or other satisfaction of the Obligations.

 

Section 2.5 Special Provisions Relating to Stock Collateral.

 

(a) So long as no Event of Default shall have occurred and be continuing, the Grantors shall have the right to exercise all voting, consensual and other powers of ownership pertaining to the Stock Collateral for all purposes not inconsistent with the terms of any

 

  

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Transaction Document; provided, that the Grantors agree that they will not vote the Stock Collateral in any manner that is inconsistent with the terms of any Transaction Document.

 

(b) So long as no Event of Default shall have occurred and be continuing, the Grantors shall be entitled to receive and retain any dividends on the Stock Collateral paid in cash.

 

(c) If any Event of Default shall have occurred and be continuing, and whether or not the Collateral Agent exercises any available right to declare any Obligation due and payable or seeks or pursues any other right, remedy, power or privilege available to it under applicable law or this Pledge Agreement, all dividends and other distributions on the Stock Collateral shall be paid directly to the Collateral Agent and retained by it in a segregated account as part of the Stock Collateral, subject to the terms of this Pledge Agreement, and if the Collateral Agent shall so request, each Grantor agrees to execute and deliver to the Collateral Agent appropriate additional dividend, distribution and other orders and instruments to that end; provided, that if such Event of Default is cured or waived in the manner as set forth in the Notes, any such dividend or distribution paid to the Collateral Agent prior to such cure or waiver shall, upon request of the applicable Grantor (except to the extent applied to the Obligations), be returned by the Collateral Agent to such Grantor.

 

 

ARTICLE III

 

 

Representations and Warranties

 

Section 3.1 Representations and Warranties.  Each Grantor represents and warrants as follows:

 

(a) Such Grantor has and shall have absolute, good and marketable title to all the Collateral of such Grantor, wherever and whenever acquired, free and clear of any lien, except for Permitted Liens, and such Grantor has not filed, nor is there, to such Grantor’s knowledge, on record, a financing statement under the Code (or similar statement or instrument of registration under the law of any jurisdiction) covering any Collateral except as permitted by the Purchase Agreement and Permitted Liens.

 

(b) The information set forth in the Perfection Certificate with respect to such Grantor is true, complete and accurate in all respects as of the date hereof.  Schedule 3.1(b) hereto lists, as to such Grantor, (i) such Grantor’s chief executive office and other place(s) of business, (ii) such Grantor’s legal organizational structure and its jurisdiction of incorporation, (iii) the address where records relating to the Collateral are maintained, (iv) any other location of any other Equipment and Goods (other than mobile Goods) included in the Collateral, (v) location of leased facilities and name of lessor/sublessor, (vi) any fictitious names used by such Grantor, and (vii) all deposit accounts of such Grantor together with the name of the bank where they are located, the account number and a contact person.

 

(c) Such Grantor has paid or will pay when due all taxes, fees, assessments and other charges now or hereafter imposed upon the Collateral except for any tax, fee, assessment or other charge the validity of which is being contested in good faith by appropriate

 

  

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proceedings and so long as such Grantor has set aside on its books adequate reserves with respect thereto.

 

(d) As a result of the execution and delivery of this Pledge Agreement and upon the filing of any financing statements or other documents necessary to assure, preserve and perfect the security interest created hereby and to the extent a lien may be perfected by filing a financing statement, the Collateral Agent on behalf of the Secured Party shall have a valid, perfected, enforceable lien on, and a continuing security interest in, the Collateral.

 

(e) Except as disclosed on Schedule 3.1(e), none of the Collateral is held by a third party in any location as assignee, trustee, bailee, consignee or in any similar capacity.

 

(f) The Pledged Stock described in Section 2.1(e) and Section 2.2(e) hereof (i) is duly authorized, validly existing, fully paid and nonassessable, and none of such Pledged Stock is subject to any contractual restriction, or any restriction under the charter or by-laws of the respective issuer of such Pledged Stock, upon the transfer of such Pledged Stock; and (ii) constitutes all of the issued and outstanding shares of capital stock of any class of each Subsidiary of the Borrower organized under the laws of the United States or any State thereof, and approximately 65% of the issued and outstanding shares of capital stock of any class of any Subsidiary of the Borrower organized under the laws of any jurisdiction other than the United States or any State thereof (in each case, whether or not registered in the name of the applicable Grantor), and Schedule 3.1(f) correctly identifies, as of the date hereof, the respective issuers of such Pledged Stock, the respective class or type of interest, of the shares comprising such Pledged Stock, the respective number of shares held, the percentage of the respective issuer’s total issued and outstanding capital stock, membership units or other ownership interests represented by such Pledged Stock, if such Pledged Stock is certificated, the number of the certificate, and the holder of such Pledged Stock.

 

(g) The properties and assets of ProCyte include all material assets of the Borrower and its subsidiaries that are used primarily in, arise primarily out of, or are primarily related to, the Skin Care Business or are necessary for the conduct of the Skin Care Business as currently conducted, including, without limitation, customer lists and other customer-related information, intellectual property rights, rights to royalties, and other intangible rights (collectively, the “ProCyte Assets”).

 

(h) The properties and assets of PTI and PTL, taken together, include all material assets of the Borrower and its subsidiaries that are used primarily in, arise primarily out of, or are primarily related to, the PT Business or are necessary for the conduct of the PT Business as currently conducted, including, without limitation, customer lists and other customer-related information, intellectual property rights, rights to royalties, and other intangible rights (collectively, the “PT Assets”).

 

(i) Organization and Qualification.  (i) The Borrower is duly organized, validly existing and in good standing under the laws of the State of Delaware, and each other Grantor is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, (ii) Each Grantor (A) has all requisite power and authority to own and operate its properties, to carry on its business as now conducted and as proposed to be conducted, to enter

 

  

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into this Pledge Agreement and to carry out the transactions contemplated hereby and (B) is qualified to do business and in good standing in every jurisdiction where its assets are located and wherever necessary to carry out its business and operations, except in jurisdictions where the failure to be so qualified or in good standing has not had, and could not be reasonably expected to be material.

 

(j) Due Authorization; Binding Obligation.  The execution, delivery and performance of this Pledge Agreement has been duly authorized by all necessary action on the part of each Grantor.  This Pledge Agreement has been duly executed and delivered by each Grantor and is the legally valid and binding obligation of such Grantor, enforceable against such Grantor in accordance with its respective terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability.

 

(k) No Conflicts.  The execution, delivery and performance by each Grantor of this Pledge Agreement and the consummation of the transactions contemplated by this Pledge Agreement do not and will not (i) violate (A) any provision of any law or any governmental rule or regulation applicable to any Grantor, (B) any of the certificate or articles of incorporation, bylaws or other organizational or charter documents of any Grantor, or (C) any order, judgment or decree of any court or other agency of government binding on any Grantor; (ii) conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any Contract of any Grantor; (iii) result in or require the creation or imposition of any Lien upon any of the properties or assets of any Grantor (other than the Liens created in favor of the Secured Party hereunder); or (iv) require any approval of stockholders, members or partners or any approval or consent of any Person under any Contract of any Grantor.

 

(l) Governmental Consents.  The execution, delivery and performance by the Grantors of this Pledge Agreement and the consummation of the transactions contemplated by this Pledge Agreement do not and will not require any registration with, consent or approval of, or notice to, or other action to, with or by, any Governmental Authority, except for filings and recordings with respect to the Collateral to be made, or otherwise delivered to the Collateral Agent for filing and/or recordation, as of the date hereof.

 

Section 3.2 Survival. All representations, warranties and agreements of the Grantors contained in this Pledge Agreement shall survive the execution, delivery and performance of this Pledge Agreement until the termination of this Pledge Agreement pursuant to Section 6.5 hereof.

 

 

ARTICLE IV

 

 

Covenants

 

Section 4.1 Covenants. Each Grantor hereby covenants and agrees with the Collateral Agent that so long as this Pledge Agreement shall remain in effect or any Obligations shall remain unpaid or unperformed:

 

(a) Such Grantor shall promptly give written notice to the Collateral Agent of any levy or attachment, execution or other process against any of the Collateral;

 

  

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(b) At such Grantor’s own cost and expense, such Grantor shall take any and all actions reasonably necessary or desirable to defend the Collateral against the claims and demands of all persons other than the Collateral Agent, and to defend the security interest of the Collateral Agent in the Collateral and the priority thereof against any Lien of any nature, except in each case for Permitted Liens.

 

(c) Such Grantor shall keep all tangible Collateral properly insured and in good order and repair (normal wear and tear excepted) and immediately notify the Collateral Agent in writing of any event causing any material loss, damage or depreciation in value of the Collateral in the aggregate and of the extent of such loss, damage or depreciation.

 

(d) Such Grantor shall mark any Collateral that is Chattel Paper with a legend showing the Collateral Agent’s Lien and security interest therein.

 

(e) Such Grantor shall:

 

(i) furnish to the Collateral Agent from time to time (but, unless an Event of Default shall have occurred and be continuing, no more frequently than quarterly) statements and schedules further identifying and describing the Copyright Collateral, the Patent Collateral and the Trademark Collateral and such other reports in connection with the Copyright Collateral, the Patent Collateral and the Trademark Collateral, as the Collateral Agent may reasonably request, all in reasonable detail;

 

(ii) prior to filing, either directly or through an agent, licensee or other designee, any application for any Copyright, Patent or Trademark, furnish to the Collateral Agent prompt written notice of such proposed filing; and

 

(iii) promptly give written notice to the Collateral Agent of any other change in the intellectual property rights material to its businesses.

 

(f) Such Grantor shall to the extent consistent with its past practice:

 

(i) (either itself or through licensees) for any Trademark Collateral material to the conduct of its business, (A) to the extent consistent with good business judgment, continue to use such Trademark on each and every trademark class of Goods applicable to its current line as reflected in its current catalogs, brochures and price lists in order to maintain such Trademark in full force and effect free from any claim of abandonment for nonuse, (B) maintain as in the past the quality of products and services offered under such Trademark, (C) employ such Trademark with the appropriate notice of registration and (D) not (and not permit any licensee or sublicensee to) do any act or knowingly omit to do any act whereby any Trademark material to the conduct of its business may become invalidated;

 

(ii)  except to the extent consistent with good business judgment, (either itself or through licensees) not do any act or knowingly omit to do any act whereby any material Patent Collateral may become abandoned or dedicated;

 

  

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(iii) notify the Collateral Agent in writing immediately if it knows or has reason to know that any Intellectual Property material to the conduct of its business may become abandoned or dedicated, or of any adverse determination or development (including the institution of, or any such determination or development in, any proceeding before any governmental authority) regarding such Grantor’s ownership of any Intellectual Property material to its business, its right to copyright, patent or register the same (as the case may be), or its right to keep, use and maintain the same;

 

(iv) take all necessary steps that are consistent with good business practices in any proceeding before any appropriate governmental authority to maintain and pursue each application relating to any Intellectual Property material to the conduct of its business (and to obtain the relevant registrations) and to maintain each registration material to the conduct of its business, including payment of maintenance fees, filing of applications for renewal, affidavits of use, affidavits of incontestability and opposition, interference and cancellation proceedings;

 

(v) in the event that any Intellectual Property material to the conduct of its business is infringed, misappropriated or diluted by a third party, such Grantor shall notify the Collateral Agent in writing within 10 days after it learns of such event and shall, if consistent with good business practice, promptly sue for infringement, misappropriation or dilution, seek temporary restraints and preliminary injunctive relief to the extent practicable, seek to recover any and all damages for such infringement, misappropriation or dilution and take such other actions as are appropriate under the circumstances to protect such Collateral;

 

(vi) shall, through counsel acceptable to the Collateral Agent, prosecute diligently any application for any Intellectual Property pending as of the date of this Pledge Agreement or thereafter made until the termination of this Pledge Agreement and preserve and maintain all rights in applications for any Intellectual Property material to the conduct of its business; provided, however, that such Grantor shall have no obligation to make any such application if making such application would be unnecessary or imprudent in the good faith business judgment of such Grantor. Any expenses incurred in connection with such an application shall be borne by such Grantor. Except to the extent consistent with good business judgment, such Grantor shall not abandon any right to file an application for any Intellectual Property or any pending application in the United States of America without the consent of the Collateral Agent, which consent shall not be unreasonably withheld; and

 

(vii) after the occurrence and through the continuance of an Event of Default, the Collateral Agent shall have the right but shall in no way be obligated to bring suit in its own name to enforce the Copyright Collateral, Patent Collateral and Trademark Collateral and any license under such Intellectual Property, in which event the Grantor shall, at the request of the Collateral Agent, do any and all lawful acts and execute and deliver any and all proper documents required by the Collateral Agent in aid of such enforcement action.

 

  

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(g) The Grantor shall cause the Stock Collateral to constitute at all times 100% of the total number of shares of each class of capital stock of each Subsidiary of the Borrower organized under the laws of the United States or any State thereof and 65% of the total number of shares of each class of capital stock of each Subsidiary of the Borrower organized under the laws of any jurisdiction other than the United States or any State thereof then outstanding and shall not permit any of Subsidiary of the Borrower to issue any shares of capital stock, membership units or other ownership interests other than to a Grantor. Such Grantor shall cause all such shares, units or interests to be duly authorized, validly issued, fully paid and nonassessable and to be free of any contractual restriction or any restriction under the charter, bylaws, operating agreement or other similar organizational documents of the respective issuer of such Stock Collateral, upon the transfer of such Stock Collateral (except for any such restriction contained in the Transaction Documents).

 

(h) Such Grantor shall not:

 

(i) change its name or use any fictitious or trade name, other than in accordance with Section 6.1 hereof;

 

(ii) change its jurisdiction of incorporation, other than in accordance with Section 6.1 hereof;

 

(iii) change the location of its chief executive office, other than in accordance with Section 6.1 hereof;

 

(iv) permit any of the Collateral (other than Collateral that constitutes Goods that are mobile and that are of a type normally used in more than one jurisdiction or otherwise in the ordinary course of business (including, without limitation, sales and shipments of Inventory in the ordinary course of business)) to be removed from or located in any place not identified as the location of such Collateral to the Collateral Agent, as the case may be, except after written notice to the Collateral Agent and compliance with such procedures as the Collateral Agent reasonably may impose to prevent any interruptions or discontinuity in the security interest granted pursuant to this Pledge Agreement;

 

(v) voluntarily grant, incur or allow to exist any lien or security interest on or in any of the Collateral which lien or security interest shall be equal or superior in priority to the security interests granted in this Pledge Agreement, except for Permitted Liens to the extent such Permitted Liens by their express terms or applicable law have priority equal or greater than the security interests granted pursuant to this Pledge Agreement; or

 

(i) cause or permit the sale, distribution or other transfer by any Grantor of any material assets (other than any Xtrac Assets).

 

  

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ARTICLE V

 

 

Remedial Matters

 

Section 5.1 Event of Default.  An “Event of Default” shall exist hereunder if an event of default shall occur under the Notes.

 

Section 5.2 Powers of Attorney.

 

(a) Each Grantor hereby irrevocably appoints the Collateral Agent (and any officer or agent of the Collateral Agent) as its true and lawful attorney-in-fact, with power of substitution for and in the name of the Collateral Agent or otherwise, for the use and benefit of the Collateral Agent, effective upon the occurrence and during the continuance of an Event of Default:

 

(i) to receive, endorse the name of such Grantor upon and deliver any notes, acceptances, checks, drafts, money orders or other evidences of payment that may come into the possession of the Collateral Agent with respect to the Collateral;

 

(ii) to demand, collect and receive payment in respect of the Collateral and to apply any such payments directly to the payment of the Obligations in accordance with Section 5.5 hereof;

 

(iii) to receive and give discharges and releases of all or any of the Collateral;

 

(iv) to commence and prosecute any and all suits, actions or proceedings at law or in equity in any court of competent jurisdiction, to collect or otherwise realize on all or any part of the Collateral or to enforce any rights in respect thereof;

 

(v) to sign the name of such Grantor on any invoice or bill of lading relating to any of the Collateral;

 

(vi) to send verification of any Accounts to any obligors (such obligors being hereinafter referred to as the “Account Debtors”) or customer;

 

(vii) to notify any Account Debtor or other obligor of the Grantor with respect to any Collateral to make payment to the Collateral Agent;

 

(viii) to settle, compromise, compound, adjust or defend any actions, suits or proceedings relating or pertaining to all or any of the Collateral;

 

(ix) to take any action for purposes of carrying out of the terms of this Pledge Agreement;

 

(x) to enforce all of such Grantor’s rights and powers under and pursuant to any and all agreements with respect to the Collateral; and

 

  

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(xi) generally, to sell, assign, transfer, pledge, make any agreement with respect to or otherwise deal with all or any of the Collateral, and to do all other acts and things necessary to carry out this Pledge Agreement, as fully and completely as though the Collateral Agent were the absolute owner of the Collateral for all purposes; provided, however, nothing herein contained shall be construed as requiring or obligating the Collateral Agent to make any commitment or to make any inquiry as to the nature or sufficiency of any payment received by the Collateral Agent, or to present or file any claim or notice, or to take any action with respect to the Collateral or any part thereof or the moneys due or to become due in respect thereof or any property covered thereby; and, provided further, that Collateral Agent shall in all cases act in material compliance with all applicable laws.  It is understood and agreed that the power of attorney granted to the Collateral Agent for the purposes set forth above in this Section 5.2 is coupled with an interest and is irrevocable, and such Grantor hereby ratifies all actions taken by its attorney-in-fact by virtue hereof. The provisions of this Section 5.2 shall in no event relieve any Grantor of any of its obligations hereunder or under any of the other Transaction Documents with respect to the Collateral or any part thereof or impose any obligation on the Collateral Agent to proceed in any particular manner with respect to the Collateral or any part thereof, or in any way limit the exercise by the Collateral Agent of any other or further right which it may have on the date of this Pledge Agreement or hereafter, whether hereunder, under any of the other Transaction Documents, by law or otherwise.

 

(b) Beyond the duty of the Collateral Agent to exercise reasonable care in the custody of any Collateral in its possession, the Collateral Agent shall not, under any circumstance or in any event whatsoever, have any liability for any part of the Collateral, nor shall the Collateral Agent have any liability for any error or omission or delivery of any kind incurred in the good faith settlement, collection or payment of any of the Collateral or any monies received in payment therefor or for any damages resulting therefrom, nor shall this Pledge Agreement impose upon the Collateral Agent any obligation to perform any obligation with respect to the Collateral. The costs of collection, notification and enforcement, including but not limited to, reasonable attorneys’ fees and reasonable out-of-pocket expenses, shall be borne solely by the Grantors whether the same are incurred by the Grantors or the Collateral Agent. Each Grantor agrees to indemnify, defend and hold the Collateral Agent harmless from and against any and all other claims, demands, losses, judgments and liabilities (including, but not limited to, liabilities for penalties) of any nature, and to reimburse the Collateral Agent for all reasonable costs and expenses, including but not limited to reasonable attorneys’ fees and expenses, arising from this Pledge Agreement or the exercise of any right or remedy granted to the Collateral Agent hereunder other than those incurred solely as a result of the gross negligence and willful misconduct of the Collateral Agent.

 

Section 5.3 Collections.  Upon the occurrence and during the continuance of an Event of Default, the Collateral Agent may, in its sole discretion, in its name or in the name of any Grantor, or otherwise, (a) demand, sue for, collect or receive any money or property at any time payable or receivable on account of or in exchange for, or make any compromise or settlement deemed desirable with respect to any of the Collateral, but shall be under no

 

  

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obligation to do so, or (b) extend the time of payment, arrange for payment in installments, or otherwise modify the term of, or release, any of the Collateral, without thereby incurring responsibility to, or discharging or otherwise affecting any liability of, such Grantors, other than to discharge such Grantors in so doing with respect to liabilities of such Grantor to the extent that the liabilities are paid or repaid. Upon the occurrence and during the continuance of an Event of Default, any payments of Accounts, when collected by any Grantor, (i) shall be forthwith (and, in any event, within two Business Days) deposited by such Grantor in the exact form received, duly indorsed by such Grantor to the Collateral Agent if required, in a collateral account maintained under the sole dominion and control of the Collateral Agent, and (ii) until so turned over, shall be held by such Grantor in trust for the Collateral Agent and the Secured Parties, segregated from other funds of such Grantor.  Each such deposit of Proceeds of such Accounts shall be accompanied by a report identifying in reasonable detail the nature and source of the payments included in the deposit.  In addition to the foregoing rights of the Collateral Agent and the Secured Parties with respect to payments of Accounts, after the occurrence and during the continuance of an Event of Default, any money, checks, notes, bills, drafts, or commercial paper received by any Grantor and included in the Collateral shall be held in trust for the Collateral Agent on behalf of the Secured Party and any other secured creditors having rights thereto senior to the Secured Party and shall be promptly turned over to the Collateral Agent or any other secured creditors having rights thereto senior to the Secured Party as its interest shall appear. Upon the occurrence and during the continuance of an Event of Default, the Collateral Agent may make such payments and take such actions as the Collateral Agent, in its sole discretion, deems necessary to protect its security interest in the Collateral or the value thereof, and the Collateral Agent is hereby unconditionally and irrevocably authorized (without limiting the general nature of the authority hereinabove conferred) to pay, purchase, contest or compromise any liens which in the judgment of the Collateral Agent appear to be equal to, prior to or superior to its security interest in the Collateral and any liens not expressly permitted by this Pledge Agreement.

 

Section 5.4 Possession; Sale of Collateral.

 

(a) Upon the occurrence and during the continuance of an Event of Default, the Collateral Agent may, subject to the rights of any other secured creditors having rights senior to those of the Secured Party: (i) require any Grantor to assemble the tangible assets that comprise part of the Collateral and make them available to the Collateral Agent at any place or places reasonably designated by the Collateral Agent; (ii) to the extent permitted by applicable law, with or without notice or demand for performance and without liability for trespass, enter any premises where the Collateral may be located and peaceably take possession of the same, and may demand and receive such possession from any person who has possession thereof, and may take such measures as it may deem necessary or proper for the care or protection thereof (including, but not limited to, the right to remove all or any portion of the Collateral); and (iii) with or without taking such possession may sell or cause to be sold, in one or more sales or parcels, for cash, on credit or for future delivery, without assumption of any credit risk, all or any portion of the Collateral, at public or private sale or at any broker’s board or any securities exchange, without demand of performance or notice of intention to sell or of time or place of sale, except 10 Business Days’ written notice to such Grantor of the time and place of such sale or sales (and such other notices as may be required by applicable statute, if any, and which cannot be waived), which each Grantor hereby expressly acknowledges is commercially

 

  

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reasonable. In the event of any sale, license or other disposition of any of the Trademark Collateral, the goodwill connected with and symbolized by the Trademark Collateral subject to such disposition shall be included, and the Grantors shall supply to the Collateral Agent or its designee, for inclusion in such sale, assignment or other disposition, all Intellectual Property relating to such Trademark Collateral. The Collateral Agent shall have no obligation to clean-up or otherwise prepare any Collateral for sale. The Collateral may be sold or disposed of for cash, upon credit or for future delivery as the Collateral Agent shall deem appropriate. Each such purchaser at any such sale shall hold the property sold absolutely, free from any claim or right on the part of any Grantor, and each Grantor hereby waives (to the extent permitted by law) all rights of redemption, stay and appraisal that such Grantor now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted. At any such sale, the Collateral, or portion thereof, to be sold may be sold in one lot as an entirety or in separate parcels, as the Collateral Agent may (in its sole and absolute discretion) determine. The Collateral Agent shall not be obligated to make any sale of any Collateral if it shall determine not to do so, regardless of the fact that notice of sale of such Collateral shall have been given. The Collateral Agent may, without notice or publication, adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for sale, and such sale may, without further notice, be made at the time and place to which the same was so adjourned. The Collateral Agent may comply with any applicable state or federal law requirements in connection with a disposition of the Collateral and compliance will not be considered adversely to affect the commercial reasonableness of any disposition of the Collateral. In case any sale of all or any part of the Collateral is made on credit or for future delivery, the Collateral so sold may be retained by the Collateral Agent until the sale price is paid by the purchaser or purchasers thereof. The Collateral Agent shall not incur any liability for the failure to collect or realize upon any or all of the Collateral or for any delay in doing so and, in case of any such failure, shall not be under any obligation to take any action with respect thereto; provided, such Collateral may be sold again upon like notice. If any Collateral is sold upon credit, the Grantors will be credited only with payments actually made by the purchaser, received by the Collateral Agent and applied to the Obligations in accordance with Section 5.5 In the event the purchasers fail to pay for the Collateral, the Collateral Agent may resell the Collateral. At any public sale made pursuant to this Section 5.4, the Collateral Agent may bid for or purchase, free from any right of redemption, stay or appraisal and all rights of marshalling, the Collateral and any other security for the Obligations or otherwise on the part of any Grantor (all said rights being also hereby waived and released by each Grantor to the fullest extent permitted by law) or any part thereof offered for sale and may make payment on account thereof by using any claim then due and payable to the Secured Party from any Grantor as a credit against the purchase price, and the Collateral Agent may, upon compliance with the terms of sale, hold, retain and dispose of such property without further accountability to any Grantor therefor. For purposes hereof, a written agreement to purchase the Collateral or any portion thereof shall be treated as a sale thereof; the Collateral Agent shall be free to carry out such sale pursuant to such agreement, and no Grantor shall be entitled to the return of the Collateral or any portion thereof subject thereto, notwithstanding the fact that after the Collateral Agent shall have entered into such an agreement, all Events of Default shall have been remedied and any obligations to the Secured Party shall have been paid in full. As an alternative to exercising the power of sale herein conferred upon them, the Collateral Agent may proceed by a suit or suits at law or in equity to foreclose this Pledge Agreement and to sell the Collateral or any portion thereof

 

  

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pursuant to a judgment or decree of a court or courts having competent jurisdiction or pursuant to a proceeding by a court-appointed receiver. In any such action, the Collateral Agent shall be entitled to the appointment of a receiver without notice, to peaceably take possession of all or any portion of the Collateral and to exercise such powers as the court shall confer upon the receiver. Notwithstanding the foregoing, if an Event of Default shall occur and be continuing, the Collateral Agent shall be entitled to apply, without notice to any Grantor, any cash or cash items constituting Collateral in its possession to payment of the Obligations in accordance with the provisions of Section 5.5 hereof.

 

(b) If an Event of Default shall occur and be continuing, the Collateral Agent shall, in addition to exercising any and all rights and remedies afforded to it hereunder, have all the rights and remedies of a secured party under all applicable provisions of law, including but not limited to, the Code.

 

(c) Each Grantor agrees that notwithstanding anything to the contrary contained in this Pledge Agreement, such Grantor shall remain liable under each contract or other agreement giving rise to Accounts and General Intangibles and all other contracts or agreements constituting part of the Collateral and the Collateral Agent shall not have any obligation or liability in respect thereof.

 

(d) After the occurrence and during the continuance of an Event of Default, upon the Collateral Agent’s request, but subject to the rights of any other secured creditors having rights senior to those of the Secured Party, each Grantor shall deliver to the Collateral Agent all original and other Documents evidencing and relating to the sale and delivery of Inventory or Accounts, including but not limited to, all original orders, invoices and shipping receipts. After the occurrence and during the continuance of an Event of Default, each Grantor shall also furnish to the Collateral Agent, promptly upon the request of the Collateral Agent, such reports, reconciliations and aging balances regarding Accounts as the Collateral Agent may request from time to time.

 

Section 5.5 Application of Proceeds. Unless the Collateral Agent otherwise directs, the proceeds of any sale of Collateral pursuant to this Pledge Agreement or otherwise, as well as any Collateral consisting of cash, shall be applied after receipt by the Collateral Agent as follows, subject to the rights of any other secured creditor having rights senior to those of the Secured Party:

 

First, to the payment of all reasonable costs, fees and expenses of the Collateral Agent and its agents, representatives and attorneys incurred in connection with such sale or with the retaking, holding, handling, preparing for sale (or other disposition) of the Collateral or otherwise in connection with the Notes, this Pledge Agreement or any of the Obligations, including but not limited to, the reasonable fees and expenses of the Collateral Agent’s agents and attorneys’ and court costs (whether at trial, appellate or administrative levels), if any, incurred by the Collateral Agent in so doing;

 

Second, to the payment of the outstanding principal balance and accrued interest and fees on the Obligations in such order as the Collateral Agent may determine;

 

  

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Third, to pay all other amounts payable by the Grantors under the Notes, the Transaction Documents and any other Obligations; and

 

Fourth, to the Grantors or to such other person as a court may direct.

 

Section 5.6 Authority of Collateral Agent.  The Collateral Agent shall have and be entitled to exercise all such powers hereunder as are specifically delegated to the Collateral Agent by the terms hereof, together with such powers as are reasonably incidental thereto. The Collateral Agent may execute any of its duties hereunder by or through its agents or employees and shall be entitled to retain counsel and to act in reliance upon the advice of such counsel concerning all matters pertaining to its duties hereunder.

 

Section 5.7 Certain Waivers; the Grantor Not Discharged.  Each Grantor expressly and irrevocably waives (to the extent permitted by applicable law) presentment, demand of payment and protest of nonpayment in respect of its Obligations under this Pledge Agreement.

 

Section 5.8 Transfer of Security Interest.  The Collateral Agent may transfer to any other person all or any part of the liens and security interests granted hereby, and all or any part of the Collateral which may be in the Collateral Agent’s possession after the occurrence and during the continuance of an Event of Default or to a successor Collateral Agent at any time. Upon such transfer, the transferee shall be vested with all the rights and powers of the Collateral Agent hereunder with respect to such of the Collateral as is so transferred, but, with respect to any of the Collateral not so transferred, the Collateral Agent shall retain all of its rights and powers (whether given to it in this Pledge Agreement, or otherwise). The Collateral Agent may, at any time, assign its rights as the Collateral Agent hereunder to any person, in the Collateral Agent’s discretion, and upon notice to the Grantor, but without any requirement for consent or approval by or from the Grantor, and any such assignment shall be valid and binding upon the Grantor, as fully as it had expressly approved the same.

 

 

ARTICLE VI

 

 

Miscellaneous

 

Section 6.1 Further Assurances. Each Grantor agrees, at its expense, to do such further things, to execute, acknowledge, deliver and cause to be duly filed all such further instruments and documents and take all such actions as the Collateral Agent may from time to time reasonably request for the better assuming and preserving of the security interests and the rights and remedies created hereby, including but not limited to, the execution and delivery of such additional conveyances, assignments, agreements and instruments, the payment of any fees and taxes required in connection with the execution and delivery of this Pledge Agreement, the granting of the security interests created hereby and the execution, filing and recordation of any financing statements (including fixture filings) or other documents as the Collateral Agent may deem reasonably necessary for the perfection of the security interests granted hereunder. If any amount payable under or in connection with any of the Collateral shall be or become evidenced by any promissory note or other Instrument, such note or Instrument shall be immediately pledged and delivered to the Collateral Agent, duly endorsed in a manner reasonably satisfactory

 

  

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to the Collateral Agent, subject to the rights of any other secured creditors having rights senior to the Collateral Agent. If at any time any Grantor shall take and perfect a security interest in any property to secure payment and performance of an Account included in the Collateral, such Grantor, upon the request of the Collateral Agent, shall promptly assign such security interest to the Collateral Agent, subject to the rights of any other secured creditors having rights senior to the Secured Party. Each Grantor agrees to notify the Collateral Agent in writing at least 30 days prior to any change (a) in its corporate name, (b) in its jurisdiction of incorporation or organization, (c) in the location of its chief executive office, (d) in its chief place of business, or (e) in the office or offices where it keeps its records relating to the Collateral. In addition to the foregoing, promptly following any change in the information set forth in the most recent Perfection Certificate with respect to any Grantor or the Collateral pledged by such Grantor, the applicable Grantor shall deliver to the Collateral Agent a supplement to the Perfection Certificate such that the information contained in the Perfection Certificate with respect to such Grantor, as supplemented thereby will, be true, complete and accurate.  Each Grantor agrees that, after the occurrence and during the continuance of an Event of Default, it shall upon request of the Collateral Agent, take any and all actions, to the extent permitted by applicable law, at its own expense, to obtain the approval of any Governmental Entity for any action or transaction contemplated by this Pledge Agreement which is then required by law, and specifically, without limitation, upon request of the Collateral Agent, to prepare, sign and file with any Governmental Entity such Grantor’s portion of any application or applications for consent to the assignment of licenses held by such Grantor, or for consent to the possession and sale of any of the Collateral by or on behalf of the Collateral Agent or the Secured Party. Each Grantor further agrees that it shall at all times, at its own expense and cost, keep accurate and complete records with respect to the Collateral, including but not limited to, a record of all payments and proceeds received in connection therewith or as a result of the sale thereof and of all credits granted, and agrees that the Collateral Agent or its representatives shall have the right at any reasonable time and from time to time to call at such Grantor’s place or places of business to inspect the Collateral and to examine or cause to be examined all of the books, records, journals and other data relating to the Collateral and to make extracts therefrom or copies thereof as are reasonably requested.

 

Section 6.2 Effectiveness.  This Pledge Agreement shall take effect with respect to each Grantor immediately upon execution by such Grantor.

 

Section 6.3 Indemnity; Reimbursement of the Collateral Agent; Deficiency.  In connection with the Collateral, this Pledge Agreement and the administration and enforcement or exercise of any right or remedy granted to the Collateral Agent hereunder, each Grantor agrees, subject to the limitations set forth hereafter (a) to indemnify, defend and hold harmless the Collateral Agent from and against any and all claims, demands, losses, judgments and liabilities (including but not limited to, liabilities for penalties) of whatever nature, relating thereto or resulting therefrom, and (b) to reimburse the Collateral Agent for all reasonable costs and expenses, including but not limited to, the reasonable fees and disbursements of attorneys, relating thereto or resulting therefrom. The foregoing indemnity agreement includes all reasonable costs incurred by the Collateral Agent in connection with any litigation relating to the Collateral whether or not the Collateral Agent shall be a party to such litigation, including but not limited to, the reasonable fees and disbursements of attorneys for the Collateral Agent, and any out-of-pocket costs incurred by the Collateral Agent in appearing as a witness or in otherwise complying with legal process served upon them. The obligations in this Section 6.3 do

 

  

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not apply to any claims for indemnity, defense, or reimbursement that arise from the gross negligence or willful misconduct of the Collateral Agent. In no event shall the Collateral Agent be liable, in the absence of gross negligence or willful misconduct on its part or Collateral Agent’s breach of its obligations hereunder, for any matter or thing in connection with this Pledge Agreement other than to account for moneys actually received by it in accordance with the terms hereof and each Grantor hereby releases the Collateral Agent from any and all claims, causes of action and demands at any time arising out of or with respect to this Pledge Agreement or the Collateral except for Collateral Agent’s breach of its obligations hereunder. All indemnities contained in this Section 6.3 and elsewhere in this Pledge Agreement shall survive the expiration or earlier termination of this Pledge Agreement. After application of the proceeds by the Collateral Agent pursuant to Section 5.5 hereof, the Grantors shall remain liable to the Collateral Agent for any deficiency.

 

Section 6.4 Continuing Lien.  It is the intent of the parties hereto that (a) this Pledge Agreement shall constitute a continuing agreement as to any and all future, as well as existing transactions, between any Grantor and the Collateral Agent under or in connection with the Notes or otherwise relating to any other Obligation, and (b) the security interest provided for herein shall attach to after-acquired as well as existing Collateral.

 

Section 6.5 Termination.  Upon payment, performance or other satisfaction in full of the Notes and all other Obligations and all other amounts due in connection therewith and termination of all commitments relating thereto, the Collateral Agent shall reassign, redeliver and release (or cause to be so reassigned, redelivered and released), without recourse upon or warranty by the Collateral Agent, and at the sole expense of the Grantors, to the Grantors, against receipt therefor, such of the Collateral (if any) as shall not have been sold or otherwise applied by the Collateral Agent pursuant to the terms hereof and not theretofore reassigned, redelivered and released to the Grantors, together with appropriate instruments of reassignment and release.  Secured Party and Collateral Agent hereby expressly agree that the Grantors may, from time to time in the ordinary course of business, pledge Collateral such that it becomes CIT Encumbered Collateral (and therefore no longer Collateral hereunder) pursuant to the CIT Agreement or Clutterbuck Collateral (as defined in the Intercreditor Agreement, dated on or about the date hereof, by and among the Secured Party, the Borrower and the Clutterbuck Funds LLC), and that Secured Party and Collateral Agent will execute such partial releases and other documents as may be reasonably requested to evidence the release of such Collateral or the subordination of the liens of Secured Party and Collateral Agent, as applicable.

 

Section 6.6 Notices.  Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in this Section prior to 6:30 p.m. (Eastern time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in this Section on a day that is not a Trading Day or later than 6:30 p.m. (Eastern time) on any Trading Day, (c) the Trading Day following the date of deposit with a nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given.  The addresses for such communications are:

 

  

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If to any Grantor:                                           to such Grantor,

 

c/o PhotoMedex, Inc.

 

147 Keystone Drive,

 

Montgomery, PA 18936

 

Attention:  President and Chief Executive Officer

 

Facsimile: (215) 619-3209

 

 

with a copy to:                                                      Morgan Lewis & Bockius LLP

 

1701 Market Street

 

Philadelphia, PA 19103

 

Attention: Stephen M. Goodman

 

Facsimile: (215) 963-5001

 

 

 

If to Collateral Agent                                           Perseus Partners VII, L.P.

 

and Secured Party:                                           c/o Perseus, L.L.C.

 

2099 Pennsylvania Ave., N.W., Suite 900

 

Washington, D.C. 20006-1813

 

Attention:  Teresa Y. Bernstein

 

Facsimile: (202) 463-6215

 

 

and to

 

 

Perseus Partners VII, L.P.

 

c/o Perseus L.L.C.

 

1325 Avenue of the Americas, 25th Floor

 

New York, NY 10019

 

Attention:  John M. Glazer

 

Facsimile: (212) 651-6399

 

 

with a copy to:                                                      Covington & Burling LLP

 

The New York Times Building

 

620 Eighth Avenue

 

New York, NY 10018

 

Attention: Andrew W. Ment

 

Facsimile: (646) 441-9012

 

 

Section 6.7 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their successors and permitted assigns.  No Grantor may assign or transfer any of its rights or obligations hereunder without the prior written consent of the Collateral Agent.  The Secured Party may assign its rights under this Agreement to any Person to whom it assigns or transfers all or any portion of the Notes.

 

Section 6.8 APPLICABLE LAW. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH

 

  

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THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES OF SUCH STATE. EACH GRANTOR, THE SECURED PARTY AND THE COLLATERAL AGENT HEREBY IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN FOR THE ADJUDICATION OF ANY DISPUTE BROUGHT BY THE COMPANY OR ANY PURCHASER HEREUNDER, IN CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO THE ENFORCEMENT OF ANY OF THE TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY WAIVE, AND AGREE NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING BROUGHT BY ANY GRANTOR, THE SECURED PARTY OR THE COLLATERAL AGENT, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, OR THAT SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF VIA REGISTERED OR CERTIFIED MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW. EACH GRANTOR, THE SECURED PARTY AND THE COLLATERAL AGENT HEREBY WAIVE ALL RIGHTS TO A TRIAL BY JURY.

 

Section 6.9 Additional Grantors.  Each Subsidiary of the Borrower that is required to become a party to this Agreement pursuant to the Purchase Agreement shall become a Grantor for all purposes of this Agreement upon execution and delivery by such Subsidiary of an Assumption Agreement in the form of Annex I hereto.

 

Section 6.10 Release of Subsidiary Grantor in Certain Circumstances.  Any Grantor (other than the Borrower) shall be released from its obligations hereunder and all Liens created hereunder in the Collateral owned by such Grantor, shall be released, upon the consummation of any transaction permitted by the Purchase Agreement and the Notes as a result of which such Grantor ceases to be a Subsidiary of the Borrower.

 

Section 6.11 Amendments; Waivers.  No provision of this Pledge Agreement may be waived or amended except in a written instrument signed by the Grantor to which such provision relates, the Secured Party and the Collateral Agent.  No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right.  The rights and remedies of the Collateral Agent hereunder are cumulative and not exclusive of any rights or remedies which it would otherwise have.  No notice to or demand on any Grantor in any case shall entitle such Grantor to any other or further notice or demand in similar or other circumstances.

 

  

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Section 6.12 Severability. If any provision of this Pledge Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Pledge Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Pledge Agreement.

 

Section 6.13 Entire Agreement.  This Agreement, together with the Purchase Agreement, the Notes, the Guaranty Agreement and the other Transaction Documents, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

Section 6.14 Counterparts.  This Pledge Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart.  In the event that any signature is delivered by facsimile transmission or email attachment, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or email-attached signature page were an original thereof.

 

Section 6.15 Headings.  The headings of this Pledge Agreement are for convenience of reference only, are not part of this Agreement and do not affect its interpretation.

 

[Signature Page Follows]

 

  

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In Witness Whereof, the parties hereto have caused this Pledge Agreement to be duly executed as of the date first above written.

 

 

                         PhotoMedex, Inc.

	  	
By:

	
/s/ Christina L. Allgeier

	  
	  	
Name:

	
Christina L. Allgeier

	  
	  	
Title:

	
Chief Financial Officer

	  

 

 

 

                         ProCyte Corporation

 

	 	
By:

	
/s/ Christina L. Allgeier

	  
	  	
Name:

	
Christina L. Allgeier

	  
	  	
Title:

	
Chief Financial Officer

	  

 

 

 

                         Photo Therapeutics, Inc.

 

	 	
By:

	
/s/ Christina L. Allgeier

	  
	  	
Name:

	
Christina L. Allgeier

	  
	  	
Title:

	
Chief Financial Officer

 

 

 

                         SLT Technology, Inc.

 

	 	
By:

	
/s/ Christina L. Allgeier

	  
	  	
Name:

	
Christina L. Allgeier

	  
	  	
Title:

	
Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

  

  

  

 

 

 

 

 

Acknowledged by Secured Party and Collateral Agent:

 

 

Perseus Partners VII, L.P., individually and in its capacity as Collateral Agent,

 

  By:              Perseus Partners VII GP, L.P.,

 

its general partner

 

  By:              Perseus Partners VII GP, L.L.C.,

 

its general partner

 

 

 

	 	
By:

	
/s/ Teresa Y. Bernstein

	  
	  	
Name:

	
Teresa Y. Bernstein

	  
	  	
Title:

	
Secretaryseries20102supplement.htm

    

      
        Exhibit 10.1 

        
           

        

      

       

       

      AVIS
BUDGET RENTAL CAR FUNDING (AESOP) LLC,

       

      as
Issuer

       

      and

       

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

       

      as
Trustee and Series 2010-2 Agent

       

      _____________________

       

      SERIES
2010-2 SUPPLEMENT

       

      dated as
of March 23, 2010

       

      to

       

      SECOND
AMENDED AND RESTATED BASE INDENTURE

       

      dated as
of June 3, 2004

       

      _____________________

      

      

      Series
2010-2 3.63% Rental Car Asset Backed Notes, Class A

      Series
2010-2 5.74% Rental Car Asset Backed Notes, Class B

      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE OF
CONTENTS

    
      	 
      	
              Page

            
	
              ARTICLE
      I DEFINITIONS

               

            	
              2

            
	
              ARTICLE
      II SERIES 2010-2 ALLOCATIONS

               

            	
              22

            
	
              Section
      2.1. Establishment of Series 2010-2 Collection Account, Series 2010-2
      Excess

              Collection
      Account and Series 2010-2 Accrued Interest Account

            	
              22

            
	
              Section
      2.2. Allocations with Respect to the Series 2010-2 Notes

            	
              22

            
	
              Section
      2.3. Payments to Noteholders

            	
              26

            
	
              Section
      2.4. Payment of Note Interest

            	
              29

            
	
              Section
      2.5. Payment of Note Principal

            	
              29

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

            	
              33

            
	
              Section
      2.7. Series 2010-2 Reserve Account

            	
              33

            
	
              Section
      2.8. Series 2010-2 Letters of Credit and Series 2010-2 Cash Collateral
      Account

            	
              35

            
	
              Section
      2.9. Series 2010-2 Distribution Account

            	
              39

            
	
              Section
      2.10. Series 2010-2 Accounts Permitted Investments

            	
              41

            
	
              Section
      2.11. Series 2010-2 Demand Notes Constitute Additional Collateral for
      Series 2010-2
      Notes

            	
              42

            
	
              Section
      2.12.  Subordination of the Class B Notes

            	
              42

            
	
              ARTICLE
      III AMORTIZATION EVENTS

               

            	
              42

            
	
              ARTICLE
      IV FORM OF SERIES 2010-2 NOTES

               

            	
              43

            
	
              Section
      4.1. Restricted Global Series 2010-2 Notes

            	
              43

            
	
              Section
      4.2. Temporary Global Series 2010-2 Notes; Permanent Global Series
      2010-2 Notes

            	
              44

            
	
              ARTICLE
      V GENERAL

               

            	
              44

            
	
              Section
      5.1. Optional Repurchase

            	
              44

            
	
              Section
      5.2. Information

            	
              45

            
	
              Section
      5.3. Exhibits

            	
              45

            
	
              Section
      5.4. Ratification of Base Indenture

            	
              45

            
	
              Section
      5.5. Counterparts

            	
              45

            
	
              Section
      5.6. Governing Law

            	
              45

            
	
              Section
      5.7. Amendments

            	
              45

            
	
              Section
      5.8. Discharge of Indenture

            	
              46

            
	
              Section
      5.9. Notice to Rating Agencies

            	
              46

            
	
              Section
      5.10. Capitalization of ABRCF

            	
              46

            
	
              Section
      5.11. Required Noteholders.

            	
              46

            
	
              Section
      5.12. Series 2010-2 Demand Notes

            	
              46

            
	
              Section
      5.13. Termination of Supplement

            	
              46

            
	
              Section
      5.14. Noteholder Consent to Certain Amendments

            	
              47

            
	
              Section
      5.15. Confidential Information.

            	
              48

            
	
              Section
      5.16. Capitalized Cost Covenant

            	
              48

            
	
              Section
      5.17. Further Limitation of Liability.

            	
              48

            
	
              Section
      5.18. Force Majeure

            	 
      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 
      	
              Page

            
	
              Section
      5.19. Waiver of Jury Trial, etc.

            	
              49

            
	
              Section
      5.20. Submission to Jurisdiction

            	
              49

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SERIES
2010-2 SUPPLEMENT, dated as of March 23, 2010 (this “Supplement”), among
AVIS BUDGET RENTAL CAR FUNDING (AESOP) LLC, a special purpose limited liability
company established under the laws of Delaware (“ABRCF”), THE BANK OF
NEW YORK MELLON TRUST COMPANY, N.A. (formerly known as The Bank of New York), a
limited purpose national banking association with trust powers, as trustee (in
such capacity, and together with its successors in trust thereunder as provided
in the Base Indenture referred to below, the “Trustee”), and THE
BANK OF NEW YORK MELLON TRUST COMPANY, N.A. (formerly known as The Bank of New
York), as agent (in such capacity, the “Series 2010-2 Agent”)
for the benefit of the Series 2010-2 Noteholders, to the Second Amended and
Restated Base Indenture, dated as of June 3, 2004, between ABRCF and the Trustee
(as amended, modified or supplemented from time to time, exclusive of
Supplements creating a new Series of Notes, the “Base
Indenture”).

     

     

    PRELIMINARY
STATEMENT

     

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

     

     

    NOW,
THEREFORE, the parties hereto agree as follows:

     

     

    DESIGNATION

     

    There is
hereby created a Series of Notes to be issued pursuant to the Base Indenture and
this Supplement, and such Series of Notes shall be designated generally as the
Series 2010-2 Rental Car Asset Backed Notes.

     

    The
Series 2010-2 Notes shall be issued in two Classes, the first of which shall be
known as the “Class A Notes” and the second of which shall be known as the
“Class B Notes”.  On the Closing Date, ABRCF shall issue (i) one
tranche of Class A Notes, which shall be designated as the Series 2010-2 3.63%
Rental Car Asset Backed Notes, Class A and, (ii) one tranche of Class B Notes,
which shall be designated as the Series 2010-2 5.74% Rental Car Asset Backed
Notes, Class B.

     

    The Class
A Notes and Class B Notes, together, constitute the Series 2010-2
Notes.  The Class B Notes shall be subordinated in right of payment to
the Class A Notes, to the extent set forth herein.

     

    The
proceeds from the sale of the Series 2010-2 Notes shall be deposited in the
Collection Account and shall be deemed to be Principal Collections.

     

    The
Series 2010-2 Notes are a non-Segregated Series of Notes (as more fully
described in the Base Indenture).  Accordingly, all references in this
Supplement to “all” Series of Notes (and all references in this Supplement to
terms defined in the Base Indenture that contain references to “all” Series of
Notes) shall refer to all Series of Notes other than Segregated Series of
Notes.

     

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
I

     

    DEFINITIONS

     

    (a)           All
capitalized terms not otherwise defined herein are defined in the Definitions
List attached to the Base Indenture as Schedule I thereto.  All
Article, Section, Subsection or Exhibit references herein shall refer to
Articles, Sections, Subsections or Exhibits of this Supplement, except as
otherwise provided herein.  Unless otherwise stated herein, as the
context otherwise requires or if such term is otherwise defined in the Base
Indenture, each capitalized term used or defined herein shall relate only to the
Series 2010-2 Notes and not to any other Series of Notes issued by
ABRCF.  In the event that a term used herein shall be defined both
herein and in the Base Indenture, the definition of such term herein shall
govern.

     

    (b)           The
following words and phrases shall have the following meanings with respect to
the Series 2010-2 Notes and the definitions of such terms are applicable to the
singular as well as the plural form of such terms and to the masculine as well
as the feminine and neuter genders of such terms:

     

    “ABCR” means Avis
Budget Car Rental, LLC.

     

    “Adjusted Net Book
Value” means, as of any date of determination, with respect to each
Adjusted Program Vehicle as of such date, the product of 0.965 and the Net Book
Value of such Adjusted Program Vehicle as of such date.

     

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

     

    “Certificate of Lease Deficit
Demand” means a certificate substantially in the form of Annex A to the Series
2010-2 Letters of Credit.

     

    “Certificate of Termination
Date Demand” means a certificate substantially in the form of Annex D to the Series
2010-2 Letters of Credit.

     

    “Certificate of Termination
Demand” means a certificate substantially in the form of Annex C to the Series
2010-2 Letters of Credit.

     

    “Certificate of Unpaid Demand
Note Demand” means a certificate substantially in the form of Annex B to the Series
2010-2 Letters of Credit.

     

    “Class” means a class
of the Series 2010-2 Notes, which may be the Class A Notes or the Class B
Notes.

     

    “Class A Carryover Controlled
Amortization Amount” means, with respect to any Related Month during the
Series 2010-2 Controlled Amortization Period, the amount, if any, by which the
portion of the Monthly Total Principal Allocation paid to the Class A
Noteholders pursuant to Section 2.5(e)(i) for the previous Related Month was
less than the Class A Controlled Distribution Amount for the previous Related
Month; provided, however, that for the
first 

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        
Related
Month in the Series 2010-2 Controlled Amortization Period, the Class A Carryover
Controlled Amortization Amount shall be zero.

    

     

    “Class A Controlled
Amortization Amount” means (i) with respect to any Related Month during
the Series 2010-2 Controlled Amortization Period other than the Related Month
immediately preceding the Series 2010-2 Expected Final Distribution Date,
$16,666,666.67 and (ii) with respect to the Related Month immediately
preceding the Series 2010-2 Expected Final Distribution Date,
$16,666,666.65.

     

    “Class A Controlled
Distribution Amount” means, with respect to any Related Month during the
Series 2010-2 Controlled Amortization Period, an amount equal to the sum of the
Class A Controlled Amortization Amount and any Class A Carryover Controlled
Amortization Amount for such Related Month.

     

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

     

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

     

    “Class A Monthly
Interest” means, with respect to (i) the initial Series 2010-2 Interest
Period, an amount equal to $272,250.00 and (ii) any other Series 2010-2 Interest
Period, an amount equal to the product of (A) one-twelfth of the Class A Note
Rate and (B) the Class A Invested Amount on the first day of such Series 2010-2
Interest Period, after giving effect to any principal payments made on such
date.

     

    “Class A Note” means
any one of the Series 2010-2 3.63% Rental Car Asset Backed Notes, Class A,
executed by ABRCF and authenticated by or on behalf of the Trustee,
substantially in the form of Exhibit A-1, Exhibit A-2 or Exhibit
A-3.  Definitive Class A Notes shall have such insertions and
deletions as are necessary to give effect to the provisions of Section 2.18 of
the Base Indenture.

     

    “Class A Note Rate”
means 3.63% per annum.

     

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

     

    “Class A Shortfall”
has the meaning set forth in Section 2.3(g)(i).

     

    “Class B Carryover Controlled
Amortization Amount” means, with respect to any Related Month during the
Series 2010-2 Controlled Amortization Period, the amount, if any, by which the
portion of the Monthly Total Principal Allocation paid to the Class B
Noteholders pursuant to Section 2.5(e)(ii) for the previous Related Month was
less than the Class B Controlled Distribution Amount for the previous Related
Month; provided, however, that for the
first Related Month in the Series 2010-2 Controlled Amortization Period, the
Class B Carryover Controlled Amortization Amount shall be zero.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    “Class B Controlled
Amortization Amount” means with respect to any Related Month during the
Series 2010-2 Controlled Amortization Period, $2,638,500.00.

     

    “Class B Controlled
Distribution Amount” means, with respect to any Related Month during the
Series 2010-2 Controlled Amortization Period, an amount equal to the sum of the
Class B Controlled Amortization Amount and any Class B Carryover Controlled
Amortization Amount for such Related Month.

     

    “Class B Initial Invested
Amount” means the aggregate initial principal amount of the Class B
Notes, which is $15,831,000.

     

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

     

    “Class B Monthly
Interest” means, with respect to (i) the initial Series 2010-2 Interest
Period, an amount equal to $68,152.46 and (ii) any other Series 2010-2 Interest
Period, an amount equal to the product of (A) one-twelfth of the Class B Note
Rate and (B) the Class B Invested Amount on the first day of such Series 2010-2
Interest Period, after giving effect to any principal payments made on such
date.

     

    “Class B Note” means
any one of the Series 2010-2 5.74% Rental Car Asset Backed Notes, Class B,
executed by ABRCF and authenticated by or on behalf of the Trustee,
substantially in the form of Exhibit B-1, Exhibit B-2 or Exhibit
B-3.  Definitive Class B Notes shall have such insertions and
deletions as are necessary to give effect to the provisions of Section 2.18 of
the Base Indenture.

     

    “Class B Note Rate”
means 5.74% per annum.

     

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

     

    “Class B Shortfall”
has the meaning set forth in Section 2.3(g)(ii).

     

    “Clearstream” is
defined in Section 4.2.

     

    “Confirmation
Condition” means, with respect to any Bankrupt Manufacturer which is a
debtor in Chapter 11 Proceedings, a condition that shall be satisfied upon the
bankruptcy court having competent jurisdiction over such Chapter 11 Proceedings
issuing an order that remains in effect approving (i) the assumption of such
Bankrupt Manufacturer’s Manufacturer Program (and the related Assignment
Agreements) by such Bankrupt Manufacturer or the trustee in bankruptcy of such
Bankrupt Manufacturer under Section 365 of the Bankruptcy Code and at the time
of such assumption, the payment of all amounts due and payable by such Bankrupt
Manufacturer under such Manufacturer Program and the curing of all other
defaults by the Bankrupt Manufacturer thereunder or (ii) the execution, delivery
and performance by such Bankrupt Manufacturer of a new post-petition
Manufacturer Program (and the related assignment agreements) on the same terms
and covering the same Vehicles as such Bankrupt Manufacturer’s Manufacturer
Program (and the related Assignment Agreements) in 

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    effect on
the date such Bankrupt Manufacturer became subject to such Chapter 11
Proceedings and, at the time of the execution and delivery of such new
post-petition Manufacturer Program, the payment of all amounts due and payable
by such Bankrupt Manufacturer under such Manufacturer Program and the curing of
all other defaults by the Bankrupt Manufacturer thereunder; provided that
notwithstanding the foregoing, the Confirmation Condition shall be deemed
satisfied until the 90th
calendar day following the initial filing in respect of such Chapter 11
Proceedings.

     

    “DBRS” means DBRS,
Inc.

     

    “DBRS Excluded Manufacturer
Receivable Specified Percentage” means, as of any date of determination,
with respect to each DBRS Non-Investment Grade Manufacturer as of such date, the
percentage (not to exceed 100%) most recently specified in writing by DBRS to
ABRCF and the Trustee and consented to by the Requisite Series 2010-2
Noteholders with respect to such DBRS Non-Investment Grade Manufacturer; provided, however, that as of
the Series 2010-2 Closing Date the DBRS Excluded Manufacturer Receivable
Specified Percentage for each DBRS Non-Investment Grade Manufacturer shall be
100%; provided,
further, that
the initial DBRS Excluded Manufacturer Receivable Specified Percentage with
respect to any Manufacturer that becomes an DBRS Non-Investment Grade
Manufacturer after the Series 2010-2 Closing Date shall be 100%.

     

    “DBRS Excluded Receivable
Amount” means, as of any date of determination, the sum of the following
amounts with respect to each DBRS Non-Investment Grade Manufacturer as of such
date:  the product of (i) to the extent such amounts are included in
the calculation of AESOP I Operating Lease Loan Agreement Borrowing Base as of
such date, all amounts receivable, as of such date, by AESOP Leasing or the
Intermediary from such DBRS Non-Investment Grade Manufacturer and (ii) the DBRS
Excluded Manufacturer Receivable Specified Percentage for such DBRS
Non-Investment Grade Manufacturer as of such date.

     

    “DBRS Non-Investment Grade
Manufacturer” means, as of any date of determination, any Manufacturer
that (i) is not a Bankrupt Manufacturer and (ii) does not have a long-term
senior unsecured debt rating of at least “BBB (low)” from DBRS; provided that any
Manufacturer whose long-term senior unsecured debt rating is downgraded from at
least “BBB (low)” to below “BBB (low)” by DBRS after the Series 2010-2 Closing
Date shall not be deemed an DBRS Non-Investment Grade Manufacturer until the
thirtieth (30th)
calendar day following such downgrade.

     

    “Demand Note Issuer”
means each issuer of a Series 2010-2 Demand Note.

     

    “Disbursement” means
any Lease Deficit Disbursement, any Unpaid Demand Note Disbursement, any
Termination Date Disbursement or any Termination Disbursement under a Series
2010-2 Letter of Credit, or any combination thereof, as the context may
require.

     

    “Euroclear” is defined
in Section 4.2.

     

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

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    “Excluded Receivable
Amount” means, as of any date of determination, the greater of the
Moody’s Excluded Receivable Amount and the DBRS Excluded Receivable Amount as of
such date.

     

    “Finance Guide” means
the Black Book Official Finance/Lease Guide.

     

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

     

    “Lease Deficit
Disbursement” means an amount drawn under a Series 2010-2 Letter of
Credit pursuant to a Certificate of Lease Deficit Demand.

     

    “Market Value Average”
means, as of any day, the percentage equivalent of a fraction, the numerator of
which is the average of the Selected Fleet Market Value as of the preceding
Determination Date and the two Determination Dates precedent thereto and the
denominator of which is the sum of (a) the average of the aggregate Net Book
Value of all Non-Program Vehicles (excluding (i) any Unaccepted Program
Vehicles, (ii) any Excluded Redesignated Vehicles and (iii) any other
Non-Program Vehicles that are subject to a Manufacturer Program with an Eligible
Non-Program Manufacturer with respect to which no Manufacturer Event of Default
has occurred and is continuing) and (b) the average of the aggregate Adjusted
Net Book Value of all Adjusted Program Vehicles, in the case of each of clause
(a) and (b) leased under the AESOP I Operating Lease and the Finance Lease as of
the preceding Determination Date and the two Determination Dates precedent
thereto.

     

    “Monthly Total Principal
Allocation” means for any Related Month the sum of all Series 2010-2
Principal Allocations with respect to such Related Month.

     

    “Moody’s Excluded
Manufacturer Receivable Specified Percentage” means, as of any date of
determination, with respect to each Moody’s Non-Investment Grade Manufacturer as
of such date, the percentage (not to exceed 100%) most recently specified in
writing by Moody’s to ABRCF and the Trustee and consented to by the Requisite
Series 2010-2 Noteholders with respect to such Moody’s Non-Investment Grade
Manufacturer; provided, however, that as of
the Series 2010-2 Closing Date the Moody’s Excluded Manufacturer Receivable
Specified Percentage for each Moody’s Non-Investment Grade Manufacturer shall be
100%; provided
further that
the initial Moody’s Excluded Manufacturer Receivable Specified Percentage with
respect to any Manufacturer that becomes a Moody’s Non-Investment Grade
Manufacturer after the Series 2010-2 Closing Date shall be 100%.

     

    “Moody’s Excluded Receivable
Amount” means, as of any date of determination, the sum of the following
amounts with respect to each Moody’s Non-Investment Grade Manufacturer as of
such date:  the product of (i) to the extent such amounts are included
in the calculation of AESOP I Operating Lease Loan Agreement Borrowing Base as
of such date, all amounts receivable, as of such date, by AESOP Leasing or the
Intermediary from such Moody’s Non-Investment Grade Manufacturer and (ii) the
Moody’s Excluded Manufacturer Receivable Specified Percentage for such Moody’s
Non-Investment Grade Manufacturer as of such date.

     

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    “Moody’s Non-Investment Grade
Manufacturer” means, as of any date of determination, any Manufacturer
that (i) is not a Bankrupt Manufacturer and (ii) does not have a long term
senior unsecured debt rating of at least “Baa3” from Moody’s; provided that any
Manufacturer whose long term senior unsecured debt rating is downgraded from at
least “Baa3” to below “Baa3” by Moody’s after the Series 2010-2 Closing Date
shall not be deemed a Moody’s Non Investment Grade Manufacturer until the
thirtieth (30th) calendar day following such downgrade.

     

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

     

    “Permanent Global Class A
Note” is defined in Section 4.2.

     

    “Permanent Global Class B
Note” is defined in Section 4.2.

     

    “Permanent Global Series
2010-2 Notes” is defined in Section 4.2.

     

    “Pre-Preference Period Demand
Note Payments” means, as of any date of determination, the aggregate
amount of all proceeds of demands made on the Series 2010-2 Demand Notes
included in the Series 2010-2 Demand Note Payment Amount as of the Series 2010-2
Letter of Credit Termination Date that were paid by the Demand Note Issuers more
than one year before such date of determination; provided, however, that if an Event of
Bankruptcy (or the occurrence of an event described in clause (a) of the
definition thereof, without the lapse of a period of sixty (60) consecutive
days) with respect to a Demand Note Issuer occurs during such one-year period,
(x) the Pre-Preference Period Demand Note Payments as of any date during the
period from and including the date of the occurrence of such Event of Bankruptcy
to and including the conclusion or dismissal of the proceedings giving rise to
such Event of Bankruptcy without continuing jurisdiction by the court in such
proceedings shall equal the Pre-Preference Period Demand Note Payments as of the
date of such occurrence for all Demand Note Issuers and (y) the Pre-Preference
Period Demand Note Payments as of any date after the conclusion or dismissal of
such proceedings shall equal the Series 2010-2 Demand Note Payment Amount as of
the date of the conclusion or dismissal of such proceedings.

     

    “Principal Deficit
Amount” means, as of any date of determination, the excess, if any, of
(i) the Series 2010-2 Invested Amount on such date (after giving effect to the
distribution of the Monthly Total Principal Allocation for the Related Month if
such date is a Distribution Date) over (ii) the Series 2010-2 AESOP I Operating
Lease Loan Agreement Borrowing Base on such date; provided, however that the
Principal Deficit Amount on any date occurring during the period commencing on
and including the date of the filing by any of the Lessees of a petition for
relief under Chapter 11 of the Bankruptcy Code to but excluding the date on
which each of the Lessees shall have resumed making all payments of the portion
of Monthly Base Rent relating to Loan Interest required to be made under the
AESOP I Operating Lease, shall mean the excess, if any, of (x) the Series 2010-2
Invested Amount on such date (after giving effect to the distribution of Monthly
Total Principal Allocation for the Related Month if such date is a Distribution
Date) over (y) the sum of (1) the Series 2010-2 AESOP I Operating Lease Loan
Agreement Borrowing Base on such date and (2) the lesser of (a) the Series
2010-2 Liquidity Amount on such date and (b) the Series 2010-2 Required
Liquidity Amount on such date.

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    “Pro Rata Share”
means, with respect to any Series 2010-2 Letter of Credit Provider as of any
date, the fraction (expressed as a percentage) obtained by dividing (A) the
available amount under such Series 2010-2 Letter of Credit Provider’s Series
2010-2 Letter of Credit as of such date by (B) an amount equal to the aggregate
available amount under all Series 2010-2 Letters of Credit as of such date;
provided, that
only for purposes of calculating the Pro Rata Share with respect to any Series
2010-2 Letter of Credit Provider as of any date, if such Series 2010-2 Letter of
Credit Provider has not complied with its obligation to pay the Trustee the
amount of any draw under its Series 2010-2 Letter of Credit made prior to such
date, the available amount under such Series 2010-2 Letter of Credit Provider’s
Series 2010-2 Letter of Credit as of such date shall be treated as reduced (for
calculation purposes only) by the amount of such unpaid demand and shall not be
reinstated for purposes of such calculation unless and until the date as of
which such Series 2010-2 Letter of Credit Provider has paid such amount to the
Trustee and been reimbursed by the Lessee or the applicable Demand Note Issuer,
as the case may be, for such amount (provided that the
foregoing calculation shall not in any manner reduce the undersigned’s actual
liability in respect of any failure to pay any demand under its Series 2010-2
Letter of Credit).

     

    “Required Controlling Class
Series 2010-2 Noteholders” means (i) for so long as any Class A Notes are
outstanding, Class A Noteholders holding more than 50% of the Class A Invested
Amount and (ii) if no Class A Notes are outstanding, Class B Noteholders holding
more than 50% of the Class B Invested Amount.

    

    “Requisite Series 2010-2
Noteholders” means, Series 2010-2 Noteholders holding more than 50% of
the Series 2010-2 Invested Amount.

     

    “Restricted Global Class A
Note” is defined in Section 4.1.

     

    “Restricted Global Class B
Note” is defined in Section 4.1.

     

    “Selected Fleet Market
Value” means, with respect to all Adjusted Program Vehicles and all
Non-Program Vehicles (excluding (i) any Unaccepted Program Vehicles,
(ii) any Excluded Redesignated Vehicles and (iii) any other Non-Program
Vehicles that are subject to a Manufacturer Program with an Eligible Non-Program
Manufacturer with respect to which no Manufacturer Event of Default has occurred
and is continuing) as of any date of determination, the sum of the respective
Market Values of each such Adjusted Program Vehicle and each such Non-Program
Vehicle, in each case subject to the AESOP I Operating Lease or the Finance
Lease as of such date.  For purposes of computing the Selected Fleet
Market Value, the “Market Value” of an Adjusted Program Vehicle or a Non-Program
Vehicle means the market value of such Vehicle as specified in the most recently
published NADA Guide for the model class and model year of such Vehicle based on
the average equipment and the average mileage of each Vehicle of such model
class and model year then leased under the AESOP I Operating Lease and the
Finance Lease; provided, that if the
NADA Guide is not being published or the NADA Guide is being published but such
Vehicle is not included therein, the Market Value of such Vehicle shall be based
on the market value specified in the most recently published Finance Guide for
the model class and model year of such Vehicle based on the average equipment
and the average mileage of each Vehicle of such model class and model year then
leased under the AESOP I Operating Lease or the Finance Lease; provided, further, that if

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    the
Finance Guide is being published but such Vehicle is not included therein, the
Market Value of such Vehicle shall mean (x) in the case of an Adjusted Program
Vehicle, the Adjusted Net Book Value of such Adjusted Program Vehicle and (y) in
the case of a Non-Program Vehicle, the Net Book Value of such Non-Program
Vehicle provided, further, that if the
Finance Guide is not being published, the Market Value of such Vehicle shall be
based on an independent third-party data source selected by the Administrator
and approved by each Rating Agency that is rating any Series of Notes at the
request of ABRCF based on the average equipment and average mileage of each
Vehicle of such model class and model year then leased under the AESOP I
Operating Lease or the Finance Lease; provided, further, that if no
such third-party data source or methodology shall have been so approved or any
such third-party data source or methodology is not available, the Market Value
of such Vehicle shall be equal to a reasonable estimate of the wholesale market
value of such Vehicle as determined by the Administrator, based on the Net Book
Value of such Vehicle and any other factors deemed relevant by the
Administrator.

     

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

     

    “Series 2004-1 Notes”
means the Series of Notes designated as the Series 2004-1 Notes.

     

    “Series 2005-1 Notes”
means the Series of Notes designated as the Series 2005-1 Notes.

     

    “Series 2005-2 Notes”
means the Series of Notes designated as the Series 2005-2 Notes.

     

    “Series 2005-4 Notes”
means the Series of Notes designated as the Series 2005-4 Notes.

     

    “Series 2006-1 Notes”
means the Series of Notes designated as the Series 2006-1 Notes.

     

    “Series 2007-2 Notes”
means the Series of Notes designated as the Series 2007-2 Notes.

     

    “Series 2008-1 Notes”
means the Series of Notes designated as the Series 2008-1 Notes.

     

    “Series 2009-1 Notes”
means the Series of Notes designated as the Series 2009-1 Notes.

     

    “Series 2009-2 Notes”
means the Series of Notes designated as Series 2009-2.

     

    “Series 2009-3 Notes”
means the Series of Notes designated as Series 2009-3.

     

    “Series 2010-1 Notes”
means the Series of Notes designated as Series 2010-1.

     

    
      
        
        

      

      
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    “Series 2010-2
Accounts” means each of the Series 2010-2 Distribution Account, the
Series 2010-2 Reserve Account, the Series 2010-2 Collection Account, the Series
2010-2 Excess Collection Account and the Series 2010-2 Accrued Interest
Account.

     

    “Series 2010-2 Accrued
Interest Account” is defined in Section 2.1(b).

     

     

    “Series 2010-2 AESOP I
Operating Lease Loan Agreement Borrowing Base” means, as of any date of
determination, the product of (a) the Series 2010-2 AESOP I Operating Lease
Vehicle Percentage as of such date and (b) the excess of (i) the AESOP I
Operating Lease Loan Agreement Borrowing Base as of such date over (ii) the
Excluded Receivable Amount as of such date.

     

     

    “Series 2010-2 AESOP I
Operating Lease Vehicle Percentage” means, as of any date of
determination, a fraction, expressed as a percentage (which percentage shall
never exceed 100%), the numerator of which is the Series 2010-2 Required AESOP I
Operating Lease Vehicle Amount as of such date and the denominator of which is
the sum of the Required AESOP I Operating Lease Vehicle Amounts for all Series
of Notes as of such date.

     

     

    “Series 2010-2 Agent”
is defined in the recitals hereto.

     

    “Series 2010-2 Available Cash
Collateral Account Amount” means, as of any date of determination, the
amount on deposit in the Series 2010-2 Cash Collateral Account (after giving
effect to any deposits thereto and withdrawals and releases therefrom on such
date).

     

    “Series-2010-2 Available
Reserve Account Amount” means, as of any date of determination, the
amount on deposit in the Series 2010-2 Reserve Account (after giving effect to
any deposits thereto and withdrawals and releases therefrom on such
date).

     

    “Series 2010-2 Cash
Collateral Account” is defined in Section 2.8(f).

     

    “Series 2010-2 Cash
Collateral Account Collateral” is defined in
Section 2.8(a).

     

    “Series 2010-2 Cash
Collateral Account Surplus” means, with respect to any Distribution Date,
the lesser of (a) the Series 2010-2 Available Cash Collateral Account Amount and
(b) the lesser of (A) the excess, if any, of the Series 2010-2 Liquidity Amount
(after giving effect to any withdrawal from the Series 2010-2 Reserve Account on
such Distribution Date) over the Series 2010-2 Required Liquidity Amount on such
Distribution Date and (B) the excess, if any, of the Series 2010-2 Enhancement
Amount (after giving effect to any withdrawal from the Series 2010-2 Reserve
Account on such Distribution Date) over the Series 2010-2 Required Enhancement
Amount on such Distribution Date; provided, however that, on any
date after the Series 2010-2 Letter of Credit Termination Date, the Series
2010-2 Cash Collateral Account Surplus shall mean the excess, if any, of (x) the
Series 2010-2 Available Cash Collateral Account Amount over (y) the Series
2010-2 Demand Note Payment Amount minus the Pre-Preference
Period Demand Note Payments as of such date.

     

    “Series 2010-2 Cash
Collateral Percentage” means, as of any date of determination, the
percentage equivalent of a fraction, the numerator of which is the Series 2010-2

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    Available
Cash Collateral Amount as of such date and the denominator of which is the
Series 2010-2 Letter of Credit Liquidity Amount as of such date.

     

    “Series 2010-2 Closing
Date” means March 23, 2010.

     

    “Series 2010-2
Collateral” means the Collateral, each Series 2010-2 Letter of Credit,
each Series 2010-2 Demand Note, the Series 2010-2 Distribution Account
Collateral, the Series 2010-2 Cash Collateral Account Collateral and the Series
2010-2 Reserve Account Collateral.

     

    “Series 2010-2 Collection
Account” is defined in Section 2.1(b).

     

    “Series 2010-2 Controlled
Amortization Period” means the period commencing at the opening of
business on February 1, 2013 (or, if such day is not a Business Day, the
Business Day immediately preceding such day) and continuing to the earliest of
(i) the commencement of the Series 2010-2 Rapid Amortization Period, (ii) the
date on which the Series 2010-2 Notes are fully paid and (iii) the termination
of the Indenture.

     

    “Series 2010-2 DBRS
Enhancement Percentage” means, as of any date of determination, the sum
of (i) the product of (A) the Series 2010-2 DBRS Lowest Enhancement Rate as of
such date and (B) the Series 2010-2 DBRS Lowest Enhanced Vehicle Percentage as
of such date, (ii) the product of (A) the Series 2010-2 DBRS Intermediate
Enhancement Rate as of such date and (B) the Series 2010-2 DBRS Intermediate
Enhanced Vehicle Percentage as of such date, and (iii) the product of (A) the
Series 2010-2 DBRS Highest Enhancement Rate as of such date and (B) the Series
2010-2 DBRS Highest Enhanced Vehicle Percentage as of such date.

     

    “Series 2010-2 DBRS Highest
Enhanced Vehicle Percentage” means, as of any date of determination, a
fraction, expressed as a percentage, (a) the numerator of which is the aggregate
Net Book Value of all Vehicles leased under the AESOP I Operating Lease that
were manufactured by Manufacturer that does not have a long-term senior
unsecured debt rating of at least “BBB (low)” from DBRS as of such date and (b)
the denominator of which is the aggregate Net Book Value of all Vehicles leased
under the AESOP I Operating Lease as of such date.

     

    “Series 2010-2 DBRS Highest
Enhancement Rate” means, as of any date of determination, the sum of (a)
35.5% and (b) the highest, for any calendar month within the preceding twelve
calendar months, of the greater of (x) an amount (not less than zero) equal to
100% minus the
Measurement Month Average for the immediately preceding Measurement Month and
(y) an amount (not less than zero) equal to 100% minus the Market
Value Average as of the Determination Date within such calendar month (excluding
the Market Value Average for any Determination Date which has not yet
occurred).

     

    “Series 2010-2 DBRS
Intermediate Enhanced Vehicle Percentage” means, as of any date of
determination, 100% minus the sum of (a) the Series 2010-2 DBRS Lowest Enhanced
Vehicle Percentage and (b) the Series 2010-2 DBRS Highest Enhanced Vehicle
Percentage.

     

    “Series 2010-2 DBRS
Intermediate Enhancement Rate” means, as of any date of determination,
the sum of (a) 35.5% and (b) the highest, for any calendar month within

     

    
      
        
        

      

      
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    the
preceding twelve calendar months, of the greater of (c) an amount (not less than
zero) equal to 100% minus the Measurement
Month Average for the immediately preceding Measurement Month and (y) an amount
(not less than zero) equal to 100% minus the Market
Value Average as of the Determination Date within such calendar month (excluding
the Market Value Average for any Determination Date which as not yet
occurred).

     

    “Series 2010-2 DBRS Lowest
Enhanced Vehicle Percentage” means, as of any date of determination, a
fraction, expressed as a percentage, (a) the numerator of which is the sum,
without duplication, of (1) the aggregate Net Book Value of all Program Vehicles
leased under the AESOP I Operating Lease that are manufactured by Eligible
Program Manufacturers having long-term senior unsecured debt ratings of “BBB” or
higher from DBRS as of such date, (2) so long as any Eligible Non-Program
Manufacturer has a long-term senior unsecured debt rating of “BBB” or higher
from DBRS and no Manufacturer Event of Default has occurred and is continuing
with respect to such Eligible Non-Program Manufacturer, the aggregate Net Book
Value of all Non-Program Vehicles leased under the AESOP I Operating Lease
manufactured by each such Eligible Non-Program Manufacturer that are subject to
a Manufacturer Program and remain eligible for repurchase thereunder as of such
date and (3) the lesser of (A) the sum of (x) if as of such date any Eligible
Program Manufacturer has a long-term senior unsecured debt rating of “BBB (low)”
from DBRS, the aggregate Net Book Value of all Program Vehicles leased under the
AESOP I Operating Lease manufactured by each such Eligible Program Manufacturer
as of such date and (y) if as of such date any Eligible Non-Program Manufacturer
has a long-term senior unsecured debt rating of “BBB (low)” from DBRS and no
Manufacturer Event of Default has occurred and is continuing with respect to
such Eligible Non-Program Manufacturer, the aggregate Net Book Value of all
Non-Program Vehicles leased under the AESOP I Operating Lease manufactured by
each such Eligible Non-Program Manufacturer that are subject to a Manufacturer
Program and remain eligible for repurchase thereunder as of such date and (B)
10% of the aggregate Net Book Value of all Vehicles leased under the AESOP I
Operating Lease as of such date and (b) the denominator of which is the
aggregate Net Book Value of all Vehicles leased under the AESOP I Operating
Lease as of such date.

     

    “Series 2010-2 DBRS Lowest
Enhancement Rate” means, as of any date of determination,
25%.

     

    “Series 2010-2 Demand
Note” means each demand note made by a Demand Note Issuer, substantially
in the form of Exhibit
C, as amended, modified or restated from time to time.

     

    “Series 2010-2 Demand Note
Payment Amount” means, as of the Series 2010-2 Letter of Credit
Termination Date, the aggregate amount of all proceeds of demands made on the
Series 2010-2 Demand Notes pursuant to Section 2.5(b) or (c) that were
deposited into the Series 2010-2 Distribution Account and paid to the Series
2010-2 Noteholders during the one year period ending on the Series 2010-2 Letter
of Credit Termination Date; provided, however, that if an
Event of Bankruptcy (or the occurrence of an event described in clause (a) of
the definition thereof, without the lapse of a period of sixty (60) consecutive
days) with respect to a Demand Note Issuer shall have occurred during such one
year period, the Series 2010-2 Demand Note Payment Amount as of the Series
2010-2 Letter of Credit Termination Date shall equal the Series 2010-2 Demand
Note Payment Amount as if it were calculated as of the date of such
occurrence.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    “Series 2010-2 Deposit
Date” is defined in Section 2.2.

     

    “Series 2010-2 Distribution
Account” is defined in Section 2.9(a).

     

    “Series 2010-2 Distribution
Account Collateral” is defined in Section 2.9(d).

     

    “Series 2010-2 Eligible
Letter of Credit Provider” means a Person satisfactory to ABCR and the
Demand Note Issuers and having, at the time of the issuance of the related
Series 2010-2 Letter of Credit, a long-term senior unsecured debt rating (or the
equivalent thereof) of at least “A1” from Moody’s and at least “A (high)” from
DBRS and a short term senior unsecured debt rating of at least “P-1” from
Moody’s and at least “R-1” from DBRS that is (a) a commercial bank having total
assets in excess of $500,000,000, (b) a finance company, insurance company or
other financial institution that in the ordinary course of business issues
letters of credit and has total assets in excess of $200,000,000 or (c) any
other financial institution; provided, however, that if a
Person is not a Series 2010-2 Letter of Credit Provider (or a letter of credit
provider under the Supplement for any other Series of Notes), then such Person
shall not be a Series 2010-2 Eligible Letter of Credit Provider until ABRCF has
provided 10 days’ prior notice to the Rating Agencies that such Person has been
proposed as a Series 2010-2 Letter of Credit Provider.

     

    “Series 2010-2
Enhancement” means the Series 2010-2 Cash Collateral Account Collateral,
the Series 2010-2 Letters of Credit, the Series 2010-2 Demand Notes, the Series
2010-2 Overcollateralization Amount and the Series 2010-2 Reserve Account
Amount.

     

    “Series 2010-2 Enhancement
Amount” means, as of any date of determination, the sum of (i) the Series
2010-2 Overcollateralization Amount as of such date, (ii) the Series 2010-2
Letter of Credit Amount as of such date, (iii) the Series 2010-2 Available
Reserve Account Amount as of such date and (iv) the amount of cash and Permitted
Investments on deposit in the Series 2010-2 Collection Account (not including
amounts allocable to the Series 2010-2 Accrued Interest Account) and the Series
2010-2 Excess Collection Account as of such date.

     

    “Series 2010-2 Enhancement
Deficiency” means, on any date of determination, the amount by which the
Series 2010-2 Enhancement Amount is less than the Series 2010-2 Required
Enhancement Amount as of such date.

     

    “Series 2010-2 Excess
Collection Account” is defined in Section 2.1(b).

     

    “Series 2010-2 Expected Final
Distribution Date” means the August 2013 Distribution Date.

     

    “Series 2010-2 Final
Distribution Date” means the August 2014 Distribution Date.

     

    “Series 2010-2 Interest
Period” means a period commencing on and including a Distribution Date
and ending on and including the day preceding the next succeeding Distribution
Date; provided,
however that
the initial Series 2010-2 Interest Period shall 

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    commence
on and include the Series 2010-2 Closing Date and end on and include April 19,
2010.

     

    “Series 2010-2 Invested
Amount” means, as of any date of determination, the sum of the Class A
Invested Amount as of such date and the Class B Invested Amount as of such
date.

     

    “Series 2010-2 Invested
Percentage” means as of any date of determination:

     

    (a)           when
used with respect to Principal Collections, the percentage equivalent (which
percentage shall never exceed 100%) of a fraction, the numerator of which shall
be equal to the sum of the Series 2010-2 Invested Amount and the Series 2010-2
Overcollateralization Amount, determined during the Series 2010-2 Revolving
Period as of the end of the Related Month (or, until the end of the initial
Related Month, on the Series 2010-2 Closing Date), or, during the Series 2010-2
Controlled Amortization Period and the Series 2010-2 Rapid Amortization Period,
as of the end of the Series 2010-2 Revolving Period, and the denominator of
which shall be the greater of (I) the Aggregate Asset Amount as of the end of
the Related Month or, until the end of the initial Related Month, as of the
Series 2010-2 Closing Date, and (II) as of the same date as in clause (I), the
sum of the numerators used to determine (i) invested percentages for allocations
with respect to Principal Collections (for all Series of Notes and all classes
of such Series of Notes) and (ii) overcollateralization percentages for
allocations with respect to Principal Collections (for all Series of Notes that
provide for credit enhancement in the form of overcollateralization);
and

     

    (b)           when
used with respect to Interest Collections, the percentage equivalent (which
percentage shall never exceed 100%) of a fraction, the numerator of which shall
be the Accrued Amounts with respect to the Series 2010-2 Notes on such date of
determination, and the denominator of which shall be the aggregate Accrued
Amounts with respect to all Series of Notes on such date of
determination.

     

    “Series 2010-2 Lease Interest
Payment Deficit” means, on any Distribution Date, an amount equal to the
excess, if any, of (a) the aggregate amount of Interest Collections which
pursuant to Section 2.2(a), (b), (c) or (d) would have been allocated to the
Series 2010-2 Accrued Interest Account if all payments of Monthly Base Rent
required to have been made under the Leases from and excluding the preceding
Distribution Date to and including such Distribution Date were made in full over
(b) the aggregate amount of Interest Collections which pursuant to Section
2.2(a), (b), (c) or (d) have been allocated to the Series 2010-2 Accrued
Interest Account (excluding any amounts paid into the Series 2010-2 Accrued
Interest Account pursuant to the proviso in Sections 2.2(c)(ii) and/or
2.2(d)(ii)) from and excluding the preceding Distribution Date to and including
the Business Day immediately preceding such Distribution Date.

     

    “Series 2010-2 Lease Payment
Deficit” means either a Series 2010-2 Lease Interest Payment Deficit or a
Series 2010-2 Lease Principal Payment Deficit.

     

    “Series 2010-2 Lease
Principal Payment Carryover Deficit” means (a) for the initial
Distribution Date, zero and (b) for any other Distribution Date, the excess of
(x) the 

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    Series
2010-2 Lease Principal Payment Deficit, if any, on the preceding Distribution
Date over (y)
the amount deposited in the Distribution Account on such preceding Distribution
Date pursuant to Section 2.5(b) on account of such Series 2010-2 Lease Principal
Payment Deficit.

     

    “Series 2010-2 Lease
Principal Payment Deficit” means on any Distribution Date the sum of (a)
the Series 2010-2 Monthly Lease Principal Payment Deficit for such Distribution
Date and (b) the Series 2010-2 Lease Principal Payment Carryover Deficit for
such Distribution Date.

     

    “Series 2010-2 Letter of
Credit” means an irrevocable letter of credit, if any, substantially in
the form of Exhibit
D issued by a Series 2010-2 Eligible Letter of Credit Provider in favor
of the Trustee for the benefit of the Series 2010-2 Noteholders.

     

    “Series 2010-2 Letter of
Credit Amount” means, as of any date of determination, the lesser of (a)
the sum of (i) the aggregate amount available to be drawn on such date under
each Series 2010-2 Letter of Credit on which no draw has been made pursuant to
Section 2.8(c), as specified therein, and (ii) if the Series 2010-2 Cash
Collateral Account has been established and funded pursuant to Section 2.8, the
Series 2010-2 Available Cash Collateral Account Amount on such date and (b) the
aggregate outstanding principal amount of the Series 2010-2 Demand Notes on such
date.

     

    “Series 2010-2 Letter of
Credit Expiration Date” means, with respect to any Series 2010-2 Letter
of Credit, the expiration date set forth in such Series 2010-2 Letter of Credit,
as such date may be extended in accordance with the terms of such Series 2010-2
Letter of Credit.

     

    “Series 2010-2 Letter of
Credit Liquidity Amount” means, as of any date of determination, the sum
of (a) the aggregate amount available to be drawn on such date under each Series
2010-2 Letter of Credit on which no draw has been made pursuant to Section
2.8(c), as specified therein, and (b) if the Series 2010-2 Cash Collateral
Account has been established and funded pursuant to Section 2.8, the Series
2010-2 Available Cash Collateral Account Amount on such date.

     

    “Series 2010-2 Letter of
Credit Provider” means the issuer of a Series 2010-2 Letter of
Credit.

     

    “Series 2010-2 Letter of
Credit Termination Date” means the first to occur of (a) the date on
which the Series 2010-2 Notes are fully paid and (b) the Series 2010-2
Termination Date.

     

    “Series 2010-2 Limited
Liquidation Event of Default” means, so long as such event or condition
continues, any event or condition of the type specified in clauses (a) through
(g) of Article III; provided, however, that any
event or condition of the type specified in clauses (a) through (g) of Article
III shall not constitute a Series 2010-2 Limited Liquidation Event of Default if
the Trustee shall have received the written consent of the Requisite Series
2010-2 Noteholders waiving the occurrence of such Series 2010-2 Limited
Liquidation Event of Default.  The Trustee shall promptly (but in any
event within two days) provide the Rating Agencies with written notice of such
waiver.

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

    “Series 2010-2 Liquidity
Amount” means, as of any date of determination, the sum of (a) the Series
2010-2 Letter of Credit Liquidity Amount on such date and (b) the Series 2010-2
Available Reserve Account Amount on such date.

     

    “Series 2010-2 Maximum
Amount” means any of the Series 2010-2 Maximum Manufacturer Amounts, the
Series 2010-2 Maximum Non-Eligible Manufacturer Amount, the Series 2010-2
Maximum Non-Program Vehicle Amount or the Series 2010-2 Maximum Specified States
Amount.

     

    “Series 2010-2 Maximum
Hyundai Amount” means, as of any day, an amount equal to 20% of the
aggregate Net Book Value of all Vehicles leased under the Leases on such
day.

     

    “Series 2010-2 Maximum
Individual Isuzu/Subaru Amount” means, as of any day, with respect to
Isuzu or Subaru individually, an amount equal to 5% of the aggregate Net Book
Value of all Vehicles leased under the Leases on such day.

     

    “Series 2010-2 Maximum Kia
Amount” means, as of any day, an amount equal to 10% of the aggregate Net
Book Value of all Vehicles leased under the Leases on such day.

     

    “Series 2010-2 Maximum
Manufacturer Amount” means, as of any day, any of the Series 2010-2
Maximum Mitsubishi Amount, the Series 2010-2 Maximum Individual Isuzu/Subaru
Amount, the Series 2010-2 Maximum Hyundai Amount, the Series 2010-2 Maximum Kia
Amount or the Series 2010-2 Maximum Suzuki Amount.

     

    “Series 2010-2 Maximum
Mitsubishi Amount” means, as of any day, an amount equal to 10% of the
aggregate Net Book Value of all Vehicles leased under the Leases on such
day.

     

    “Series 2010-2 Maximum
Non-Eligible Manufactur­er Amount” means, as of any day, an amount
equal to 3% of the aggregate Net Book Value of all Vehicles leased under the
Leases on such day.

     

    “Series 2010-2 Maximum
Non-Program Vehicle Amount” means, as of any day, an amount equal to the
Series 2010-2 Maximum Non-Program Vehicle Percentage of the aggregate Net Book
Value of all Vehicles leased under the Leases on such day.

     

    “Series 2010-2 Maximum
Non-Program Vehicle Percentage” means, as of any date of determination,
the sum of (a) 85% and (b) a fraction, expressed as a percentage, the numerator
of which is the aggregate Net Book Value of all Redesignated Vehicles
manufactured by a Bankrupt Manufacturer or a Manufacturer with respect to which
a Manufacturer Event of Default has occurred, and in each case leased under the
AESOP I Operating Lease or the Finance Lease as of such date, and the
denominator of which is the aggregate Net Book Value of all Vehicles leased
under the Leases as of such date.

     

    “Series 2010-2 Maximum
Specified States Amount” means, as of any day, an amount equal to 7.5% of
the aggregate Net Book Value of all Vehicles leased under the Leases on such
day.

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

    “Series 2010-2 Maximum Suzuki
Amount” means, as of any day, an amount equal to 7.5% of the aggregate
Net Book Value of all Vehicles leased under the Leases on such day.

     

    “Series 2010-2 Monthly
Interest” means, with respect to any Series 2010-2 Interest Period, the
sum of the Class A Monthly Interest and the Class B Monthly Interest in each
case with respect to such Series 2010-2 Interest Period.

     

    “Series 2010-2 Monthly Lease
Principal Payment Deficit” means, on any Distribution Date, an amount
equal to the excess, if any, of (a) the aggregate amount of Principal
Collections which pursuant to Section 2.2(a), (b), (c) or (d) would have been
allocated to the Series 2010-2 Collection Account if all payments required to
have been made under the Leases from and excluding the preceding Distribution
Date to and including such Distribution Date were made in full over (b) the
aggregate amount of Principal Collections which pursuant to Section 2.2(a),
(b), (c) or (d) have been allocated to the Series 2010-2 Collection Account
(without giving effect to any amounts paid into the Series 2010-2 Accrued
Interest Account pursuant to the proviso in Sections 2.2(c)(ii) and/or
2.2(d)(ii)) from and excluding the preceding Distribution Date to and including
the Business Day immediately preceding such Distribution Date.

     

    “Series 2010-2 Moody’s
Highest Enhanced Vehicle Percentage” means, as of any date
of determination, a fraction, expressed as a percentage, (a) the numerator of
which is the aggregate Net Book Value of all Vehicles leased under the AESOP I
Operating Lease that are either not subject to a Manufacturer Program or not
eligible for repurchase under a Manufacturer Program as of such date and (b) the
denominator of which is the aggregate Net Book Value of all Vehicles leased
under the AESOP I Operating Lease as of such date.

     

    “Series 2010-2 Moody’s
Highest Enhancement Rate” means, as of any date of determination, the sum
of (a) 39% and (b) the highest, for any calendar month within the preceding
twelve calendar months, of the greater of (x) an amount (not less than zero)
equal to 100% minus the Measurement
Month Average for the immediately preceding Measurement Month and (y) an amount
(not less than zero) equal to 100% minus the Market
Value Average as of the Determination Date within such calendar month (excluding
the Market Value Average for any Determination Date which has not yet
occurred).

     

    “Series 2010-2 Moody’s
Intermediate Enhanced Vehicle Percentage” means, as of any date of
determination, 100% minus the sum of (a)
the Series 2010-2 Moody’s Lowest Enhanced Vehicle Percentage and (b) the Series
2010-2 Moody’s Highest Enhanced Vehicle Percentage.

     

    “Series 2010-2 Moody’s
Intermediate Enhancement Rate” means, as of any date of determination,
39%.

     

    “Series 2010-2 Moody’s Lowest
Enhanced Vehicle Percentage” means, as of any date of determination, a
fraction, expressed as a percentage, (a) the numerator of which is the sum,
without duplication, of (1) the aggregate Net Book Value of all Program Vehicles
leased under the AESOP I Operating Lease that are manufactured by Eligible
Program 

     

    
      
        
        

      

      
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    Manufacturers
having long-term senior unsecured debt ratings of “Baa2” or higher from Moody’s
as of such date, (2) so long as any Eligible Non-Program Manufacturer has a
long-term senior unsecured debt rating of “Baa2” or higher from Moody’s and no
Manufacturer Event of Default has occurred and is continuing with respect to
such Eligible Non-Program Manufacturer, the aggregate Net Book Value of all
Non-Program Vehicles leased under the AESOP I Operating Lease manufactured by
each such Eligible Non-Program Manufacturer that are subject to a Manufacturer
Program and remain eligible for repurchase thereunder as of such date and (3)
the lesser of (A) the sum of (x) if as of such date any Eligible Program
Manufacturer has a long-term senior unsecured debt rating of “Baa3” from
Moody’s, the aggregate Net Book Value of all Program Vehicles leased under the
AESOP I Operating Lease manufactured by each such Eligible Program Manufacturer
as of such date and (y) if as of such date any Eligible Non-Program Manufacturer
has a long-term senior unsecured debt rating of “Baa3” from Moody’s and no
Manufacturer Event of Default has occurred and is continuing with respect to
such Eligible Non-Program Manufacturer, the aggregate Net Book Value of all
Non-Program Vehicles leased under the AESOP I Operating Lease manufactured by
each such Eligible Non-Program Manufacturer that are subject to a Manufacturer
Program and remain eligible for repurchase thereunder as of such date and (B)
10% of the aggregate Net Book Value of all Vehicles leased under the AESOP I
Operating Lease as of such date and (b) the denominator of which is the
aggregate Net Book Value of all Vehicles leased under the AESOP I Operating
Lease as of such date.

     

    “Series 2010-2 Moody’s Lowest
Enhancement Rate” means, as of any date of determination,
25%.

     

    “Series 2010-2 Moody’s
Required Enhancement Percentage” means, as of any date of determination,
the sum of (i) the product of (A) the Series 2010-2 Moody’s Lowest Enhancement
Rate as of such date and (B) the Series 2010-2 Moody’s Lowest Enhanced Vehicle
Percentage as of such date, (ii) the product of (A) the Series 2010-2 Moody’s
Intermediate Enhancement Rate as of such date and (B) the Series 2010-2 Moody’s
Intermediate Enhanced Vehicle Percentage as of such date, and (iii) the product
of (A) the Series 2010-2 Moody’s Highest Enhancement Rate as of such date and
(B) the Series 2010-2 Moody’s Highest Enhanced Vehicle Percentage as of such
date.

     

    “Series 2010-2 Note
Owner” means each beneficial owner of a Series 2010-2 Note.

     

    “Series 2010-2 Note
Rate” means the Class A Note Rate or the Class B Note Rate, as
applicable.

     

    “Series 2010-2
Noteholder” means any Class A Noteholder or any Class B
Noteholder.

     

    “Series 2010-2 Notes”
means, collectively, the Class A Notes and the Class B Notes.

     

    “Series 2010-2
Overcollateralization Amount” means (i) as of any date on which no AESOP
I Operating Lease Vehicle Deficiency exists, the Series 2010-2 Required

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

    Overcollateralization
Amount as of such date and (ii) as of any date on which an AESOP I Operating
Lease Vehicle Deficiency exists, the excess, if any, of (x) the Series 2010-2
AESOP I Operating Lease Loan Agreement Borrowing Base as of such date over (y)
the Series 2010-2 Invested Amount as of such date.

     

    “Series 2010-2 Past Due Rent
Payment” is defined in Section 2.2(g).

     

    “Series 2010-2
Percentage” means, as of any date of determination, a fraction, expressed
as a percentage, the numerator of which is the Series 2010-2 Invested Amount as
of such date and the denominator of which is the Aggregate Invested Amount as of
such date.

     

    “Series 2010-2 Principal
Allocation” is defined in Section 2.2(a)(ii).

     

    “Series 2010-2 Rapid
Amortization Period” means the period beginning at the close of business
on the Business Day immediately preceding the day on which an Amortization Event
is deemed to have occurred with respect to any Class of Series 2010-2 Notes and
ending upon the earliest to occur of (i) the date on which the Series 2010-2
Notes are fully paid, (ii) the Series 2010-2 Final Distribution Date and (iii)
the termination of the Indenture.

     

    “Series 2010-2 Reimbursement
Agreement” means any and each agreement providing for the reimbursement
of a Series 2010-2 Letter of Credit Provider for draws under its Series 2010-2
Letter of Credit as the same may be amended, supplemented, restated or otherwise
modified from time to time.

     

    “Series 2010-2 Repurchase
Amount” is defined in Section 5.1.

     

    “Series 2010-2 Required AESOP
I Operating Lease Vehicle Amount” means, as of any date of determination,
the sum of the Series 2010-2 Invested Amount and the Series 2010-2 Required
Overcollateralization Amount as of such date.

     

    “Series 2010-2 Required
Enhancement Amount” means, as of any date of determination, the sum of
(i) the product of the Series 2010-2 Required Enhancement Percentage as of such
date and the Series 2010-2 Invested Amount as of such date, (ii) the Series
2010-2 AESOP I Operating Lease Vehicle Percentage as of the immediately
preceding Business Day of the excess, if any, of the Non-Program Vehicle Amount
as of such date over the Series 2010-2 Maximum Non-Program Vehicle Amount as of
such date, (iii) the Series 2010-2 AESOP I Operating Lease Vehicle Percentage as
of the immediately preceding Business Day of the excess, if any, of the
aggregate Net Book Value of all Vehicles manufactured by Mitsubishi and leased
under the Leases as of such date over the Series 2010-2 Maximum Mitsubishi
Amount as of such date, (iv) the Series 2010-2 AESOP I Operating Lease Vehicle
Percentage as of the immediately preceding Business Day of the excess, if any,
of the aggregate Net Book Value of all Vehicles manufactured by Isuzu or Subaru,
individually, and leased under the Leases as of such date over the Series 2010-2
Maximum Individual Isuzu/Subaru Amount as of such date, (v) the Series 2010-2
AESOP I Operating Lease Vehicle Percentage as of the immediately preceding
Business Day of the excess, if any, of the aggregate Net Book Value of all
Vehicles manufactured by Hyundai and leased under the Leases as of such date
over the Series 2010-2 Maximum Hyundai Amount as of such date, (vi) the Series
2010-2 AESOP I Operating Lease Vehicle Percentage as of the immediately
preceding Business Day of the excess, if any, of the 

     

    
      
        
        

      

      
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    aggregate
Net Book Value of all Vehicles manufactured by Kia and leased under the Leases
as of such date over the Series 2010-2 Maximum Kia Amount as of such date, (vii)
the Series 2010-2 AESOP I Operating Lease Vehicle Percentage as of the
immediately preceding Business Day of the excess, if any, of the aggregate Net
Book Value of all Vehicles manufactured by Suzuki and leased under the Leases as
of such date over the Series 2010-2 Maximum Suzuki Amount as of such date,
(viii) the Series 2010-2 AESOP I Operating Lease Vehicle Percentage as of the
immediately preceding Business Day of the excess, if any, of the Specified
States Amount as of such date over the Series 2010-2 Maximum Specified States
Amount as of such date and (ix) the Series 2010-2 AESOP I Operating Lease
Vehicle Percentage as of the immediately preceding Business Day of the excess,
if any, of the Non-Eligible Manufacturer Amount as of such date over the Series
2010-2 Maximum Non-Eligible Manufacturer Amount as of such date.

     

    “Series 2010-2 Required
Enhancement Percentage” means, as of any date of determination, the
greater of (i) the Series 2010-2 DBRS Enchancement Percentage as of such date
and (ii) the Series 2010-2 Moody’s Required Enhancement Percentage as of such
date.

     

    “Series 2010-2 Required
Liquidity Amount” means, as of any date of determination, an amount equal
to the product of 2.50% and the Series 2010-2 Invested Amount as of such
date.

     

    “Series 2010-2 Required
Overcollateralization Amount” means, as of any date of determination, the
excess, if any, of the Series 2010-2 Required Enhancement Amount over the sum of
(i) the Series 2010-2 Letter of Credit Amount as of such date, (ii) the Series
2010-2 Available Reserve Account Amount on such date and (iii) the amount of
cash and Permitted Investments on deposit in the Series 2010-2 Collection
Account (not including amounts allocable to the Series 2010-2 Accrued Interest
Account) and the Series 2010-2 Excess Collection Account on such
date.

     

    “Series 2010-2 Required
Reserve Account Amount” means, for any date of determination, an amount
equal to the greater of (a) the excess, if any, of the Series 2010-2
Required Liquidity Amount as of such date over the Series 2010-2 Letter of
Credit Liquidity Amount as of such date and (b) the excess, if any, of the
Series 2010-2 Required Enhancement Amount over the Series 2010-2 Enhancement
Amount (excluding therefrom the Series 2010-2 Available Reserve Account Amount
and calculated after giving effect to any payments of principal to be made on
the Series 2010-2 Notes) as of such date.

     

    “Series 2010-2 Reserve
Account” is defined in Section 2.7(a).

     

    “Series 2010-2 Reserve
Account Collateral” is defined in Section 2.7(d).

     

    “Series 2010-2 Reserve
Account Surplus” means, with respect to any Distribution Date, the
excess, if any, of the Series 2010-2 Available Reserve Account Amount over the
Series 2010-2 Required Reserve Account Amount on such Distribution
Date.

     

    “Series 2010-2 Revolving
Period” means the period from and including the Series 2010-2 Closing
Date to the earlier of (i) the commencement of the Series 2010-2 Controlled
Amortization Period and (ii) the commencement of the Series 2010-2 Rapid
Amortization Period; provided that if the
Series 2010-2 Notes are paid in full on or prior to the Series
2010-2

     

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

     Expected
Final Distribution Date, then the Series 2010-2 Revolving Period shall also
include the period from and including the first day of the calendar month during
which the Distribution Date on which the Series 2010-2 Notes are paid in full
occurs to the commencement of the Series 2010-2 Rapid Amortization
Period.

     

    “Series 2010-2
Shortfall” means, on any Distribution Date, the sum of the Class A
Shortfall and the Class B Shortfall on such Distribution Date.

     

    “Series 2010-2 Termination
Date” means the August 2014 Distribution Date.

     

    “Series 2010-2 Trustee’s
Fees” means, for any Distribution Date during the Series 2010-2 Rapid
Amortization Period on which there exists a Series 2010-2 Lease Interest Payment
Deficit, a portion of the fees payable to the Trustee in an amount equal to the
product of (i) the Series 2010-2 Percentage as of the beginning of the Series
2010-2 Interest Period ending on the day preceding such Distribution Date and
(ii) the fees owing to the Trustee under the Indenture; provided that the
Series 2010-2 Trustee’s Fees in the aggregate for all Distribution Dates shall
not exceed 1.1% of the Series 2010-2 Required AESOP I Operating Lease Vehicle
Amount as of the last day of the Series 2010-2 Revolving Period.

     

    “Series 2010-2 Unpaid Demand
Amount” means, with respect to any single draw pursuant to Section 2.5(c)
or (d) on the Series 2010-2 Letters of Credit, the aggregate amount drawn by the
Trustee on all Series 2010-2 Letters of Credit.

     

    “Series 2010-3 Notes”
means the Series of Notes designated as Series 2010-3.

     

    “Supplement” is
defined in the preamble hereto.

     

    “Temporary Global Class A
Note” is defined in Section 4.2.

     

    “Temporary Global Class B
Note” is defined in Section 4.2.

     

    “Temporary Global Series
2010-2 Notes” is defined in Section 4.2.

     

    “Termination Date
Disbursement” means an amount drawn under a Series 2010-2 Letter of
Credit pursuant to a Certificate of Termination Date Demand.

     

    “Termination
Disbursement” means an amount drawn under a Series 2010-2 Letter of
Credit pursuant to a Certificate of Termination Demand.

     

    “Trustee” is defined
in the recitals hereto.

     

    “Unpaid Demand Note
Disbursement” means an amount drawn under a Series 2010-2 Letter of
Credit pursuant to a Certificate of Unpaid Demand Note Demand.

     

    (c)           Any
amounts calculated by reference to the Series 2010-2 Invested Amount (or any
component thereof) on any date shall, unless otherwise stated, be calculated
after giving effect to any payment of principal made to the applicable Series
2010-2 Noteholders on such date.

     

     

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

    ARTICLE
II

     

    SERIES
2010-2 ALLOCATIONS

     

    With
respect to the Series 2010-2 Notes, the following shall apply:

     

    Section
2.1. Establishment of Series
2010-2 Collection Account, Series 2010-2 Excess Collection Account and Series
2010-2 Accrued Interest Account.  (a)  All
Collections allocable to the Series 2010-2 Notes shall be allocated to the
Collection Account.

     

    (b) The
Trustee will create three administrative subaccounts within the Collection
Account for the benefit of the Series 2010-2 Noteholders:  the Series
2010-2 Collection Account (such sub-account, the “Series 2010-2 Collection
Account”), the Series 2010-2 Excess Collection Account (such sub-account,
the “Series 2010-2
Excess Collection Account”) and the Series 2010-2 Accrued Interest
Account (such sub-account, the “Series 2010-2 Accrued
Interest Account”).

     

    Section
2.2. Allocations with Respect to
the Series 2010-2 Notes.  The
net proceeds from the initial sale of each Class of the Series 2010-2 Notes will
be deposited into the Collection Account.  On each Business Day on
which Collections are deposited into the Collection Account (each such date, a
“Series 2010-2 Deposit
Date”), the Administrator will direct the Trustee in writing pursuant to
the Administration Agreement to allocate all amounts deposited into the
Collection Account in accordance with the provisions of this Section
2.2:

     

    (a) Allocations of Collections
During the Series 2010-2 Revolving Period.  During the Series
2010-2 Revolving Period, the Administrator will direct the Trustee in writing
pursuant to the Administration Agreement to allocate on each day, prior to
11:00 a.m. (New York City time) on each Series 2010-2 Deposit Date, all
amounts deposited into the Collection Account as set forth below:

     

    (i) allocate
to the Series 2010-2 Collection Account an amount equal to the Series 2010-2
Invested Percentage (as of such day) of the aggregate amount of Interest
Collections on such day.  All such amounts allocated to the Series
2010-2 Collection Account shall be further allocated to the Series 2010-2
Accrued Interest Account; and

     

    (ii) allocate
to the Series 2010-2 Excess Collection Account an amount equal to the sum of (A)
the Series 2010-2 Invested Percentage (as of such day) of the aggregate amount
of Principal Collections on such day (for any such day, the “Series 2010-2 Principal
Allocation”) and (B) the proceeds from the issuance of any Class of the
Series 2010-2 Notes.

     

    (b) Allocations of Collections
During the Series 2010-2 Controlled Amortization Period.  With
respect to the Series 2010-2 Controlled Amortization Period, the Administrator
will direct the Trustee in writing pursuant to the Administration Agreement to
allocate, prior to 11:00 a.m.  (New York City time) on any Series
2010-2 Deposit Date, all amounts deposited into the Collection Account as set
forth below:

     

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

    (i) allocate
to the Series 2010-2 Collection Account an amount determined as set forth in
Section 2.2(a)(i) above for such day, which amount shall be further allocated to
the Series 2010-2 Accrued Interest Account; and

     

    (ii) allocate
to the Series 2010-2 Collection Account an amount equal to the Series 2010-2
Principal Allocation for such day, which amount shall be used to make principal
payments in respect of the Series 2010-2 Notes in accordance with Section 2.5,
(A) first, in respect of the Class A Notes in an amount equal to the Class A
Controlled Distribution Amount and (B) second, in respect of the Class B Notes
in an amount equal to the Class B Controlled Distribution Amount, in each case
with respect to the Related Month; provided, however, that if the
Monthly Total Principal Allocation exceeds the sum of the Class A Controlled
Distribution Amount and the Class B Controlled Distribution Amount, in each case
with respect to the Related Month, then the amount of such excess shall be
allocated to the Series 2010-2 Excess Collection Account.

     

    (c) Allocations of Collections
During the Series 2010-2 Rapid Amortization Period.  With
respect to the Series 2010-2 Rapid Amortization Period, other than after the
occurrence of an Event of Bankruptcy with respect to ABCR, any other Lessee or
any Permitted Sublessee, the Administrator will direct the Trustee in writing
pursuant to the Administration Agreement to allocate, prior to 11:00 a.m.
(New York City time) on any Series 2010-2 Deposit Date, all amounts
deposited into the Collection Account as set forth below:

     

    (i) allocate
to the Series 2010-2 Collection Account an amount determined as set forth in
Section 2.2(a)(i) above for such day, which amount shall be further allocated to
the Series 2010-2 Accrued Interest Account; and

     

    (ii) allocate
to the Series 2010-2 Collection Account an amount equal to the Series 2010-2
Principal Allocation for such day, which amount shall be used in accordance with
Section 2.5 to make principal payments in respect of the Class A Notes until the
Class A Notes have been paid in full, and after the Class A Notes have been paid
in full shall be used to make principal payments in respect of the Class B Notes
until the Class B Notes have been paid in full; provided that if on
any Determination Date (A) the Administrator determines that the amount
anticipated to be available from Interest Collections allocable to the Series
2010-2 Notes and other amounts available pursuant to Section 2.3 to pay the sum
of (x) the Series 2010-2 Monthly Interest for the next succeeding Distribution
Date and (y) any unpaid Series 2010-2 Shortfall on such Distribution Date
(together with interest on such Series 2010-2 Shortfall) will be less than the
sum of the Series 2010-2 Monthly Interest for such Distribution Date and such
Series 2010-2 Shortfall and (B) the Series 2010-2 Enhancement Amount is greater
than zero, then the Administrator shall direct the Trustee in writing to
reallocate a portion of the Principal Collections allocated to the Series 2010-2
Notes during the Related Month equal to the lesser of such insufficiency and the
Series 2010-2 Enhancement Amount to the Series 2010-2 Accrued Interest Account
to be treated as Interest Collections on such Distribution Date.

     

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

    (d) Allocations of Collections
after the Occurrence of an Event of Bankruptcy.  After the
occurrence of an Event of Bankruptcy with respect to ABCR, any other Lessee or
any Permitted Sublessee, the Administrator will direct the Trustee in writing
pursuant to the Administration Agreement to allocate, prior to 11:00
a.m.  (New York City time) on any Series 2010-2 Deposit Date, all
amounts attributable to the AESOP I Operating Lease Loan Agreement deposited
into the Collection Account as set forth below:

     

    (i) allocate
to the Series 2010-2 Collection Account an amount equal to the Series 2010-2
AESOP I Operating Lease Vehicle Percentage as of the date of the occurrence of
such Event of Bankruptcy of the aggregate amount of Interest Collections made
under the AESOP I Operating Lease Loan Agreement for such day.  All
such amounts allocated to the Series 2010-2 Collection Account shall be further
allocated to the Series 2010-2 Accrued Interest Account;

     

    (ii) allocate
to the Series 2010-2 Collection Account an amount equal to the Series 2010-2
AESOP I Operating Lease Vehicle Percentage as of the date of the occurrence of
such Event of Bankruptcy of the aggregate amount of Principal Collections made
under the AESOP I Operating Lease Loan Agreement, which amount shall be used in
accordance with Section 2.5 to make principal payments in respect of the Class A
Notes until the Class A Notes have been paid in full, and after the Class A
Notes have been paid in full shall be used to make principal payments in respect
of the Class B Notes until the Class B Notes have been paid in full; provided that if on
any Determination Date (A) the Administrator determines that the amount
anticipated to be available from Interest Collections allocable to the Series
2010-2 Notes and other amounts available pursuant to Section 2.3 to pay the sum
of (x) the Series 2010-2 Monthly Interest for the next succeeding Distribution
Date and (y) any unpaid Series 2010-2 Shortfall on such Distribution Date
(together with interest on such Series 2010-2 Shortfall) will be less than the
sum of the Series 2010-2 Interest for such Distribution Date and such Series
2010-2 Shortfall and (B) the Series 2010-2 Enhancement Amount is greater than
zero, then the Administrator shall direct the Trustee in writing to reallocate a
portion of the Principal Collections allocated to the Series 2010-2 Notes during
the Related Month equal to the lesser of such insufficiency and the Series
2010-2 Enhancement Amount to the Series 2010-2 Accrued Interest Account to be
treated as Interest Collections on such Distribution Date.

     

    (e) Series 2010-2 Excess
Collection Account.  Amounts allocated to the Series 2010-2
Excess Collection Account on any Series 2010-2 Deposit Date will be (w) first,
deposited in the Series 2010-2 Reserve Account in an amount up to the excess, if
any, of the Series 2010-2 Required Reserve Account Amount for such date over the
Series 2010-2 Available Reserve Account Amount for such date, (x) second, used
to pay the principal amount of other Series of Notes that are then in
amortization, (y) third, released to AESOP Leasing in an amount equal to the
product of (A) the Loan Agreement’s Share with respect to the AESOP I Operating
Lease Loan Agreement as of such date and (B) 100% minus the Loan
Payment Allocation Percentage with respect to 

     

    
      
        
        

      

      
        -24-

        
          

        

      

      
        
        

      

    

    the AESOP
I Operating Lease Loan Agreement as of such date and (C) the amount of any
remaining funds and (z) fourth, paid to ABRCF for any use permitted by the
Related Documents including to make Loans under the Loan Agreements to the
extent the Borrowers have requested Loans thereunder and Eligible Vehicles are
available for financing thereunder; provided, however, that in the
case of clauses (x), (y) and (z), that no Amortization Event, Series 2010-2
Enhancement Deficiency or AESOP I Operating Lease Vehicle Deficiency would
result therefrom or exist immediately thereafter.  Upon the occurrence
of an Amortization Event and once a Trust Officer has actual knowledge of the
Amortization Event, funds on deposit in the Series 2010-2 Excess Collection
Account will be withdrawn by the Trustee, deposited in the Series 2010-2
Collection Account and allocated as Principal Collections to reduce the Series
2010-2 Invested Amount on the immediately succeeding Distribution
Date.

     

    (f) Allocations From Other
Series.  Amounts allocated to other Series of Notes that have
been reallocated by ABRCF to the Series 2010-2 Notes (i) during the Series
2010-2 Revolving Period shall be allocated to the Series 2010-2 Excess
Collection Account and applied in accordance with Section 2.2(e) and (ii) during
the Series 2010-2  Controlled Amortization Period or the Series 2010-2
Rapid Amortization Period shall be allocated to the Series 2010-2 Collection
Account and applied in accordance with Section 2.2(b) or 2.2(c), as
applicable, to make principal payments in respect of the Series 2010-2
Notes.

     

    (g) Past Due Rent
Payments.  Notwithstanding the foregoing, if in the case of
Section 2.2(a) or (b), after the occurrence of a Series 2010-2 Lease Payment
Deficit, the Lessees shall make payments of Monthly Base Rent or other amounts
payable by the Lessees under the Leases on or prior to the fifth Business Day
after the occurrence of such Series 2010-2 Lease Payment Deficit (a “Past Due Rent
Payment”), the Administrator shall direct the Trustee in writing pursuant
to the Administration Agreement to allocate to the Series 2010-2 Collection
Account an amount equal to the Series 2010-2 Invested Percentage as of the date
of the occurrence of such Series 2010-2 Lease Payment Deficit of the Collections
attributable to such Past Due Rent Payment (the “Series 2010-2 Past Due Rent
Payment”).  The Administrator shall instruct the Trustee in
writing pursuant to the Administration Agreement to withdraw from the Series
2010-2 Collection Account and apply the Series 2010-2 Past Due Rent Payment in
the following order:

     

    (i) if the
occurrence of such Series 2010-2 Lease Payment Deficit resulted in one or more
Lease Deficit Disbursements being made under the Series 2010-2 Letters of
Credit, pay to each Series 2010-2 Letter of Credit Provider who made such a
Lease Deficit Disbursement for application in accordance with the provisions of
the applicable Series 2010-2 Reimbursement Agreement an amount equal to the
lesser of (x) the unreimbursed amount of such Series 2010-2 Letter of
Credit Provider’s Lease Deficit Disbursement and (y) such Series 2010-2 Letter
of Credit Provider’s Pro Rata Share of the Series 2010-2 Past Due Rent
Payment;

     

    (ii) if the
occurrence of such Series 2010-2 Lease Payment Deficit resulted in a withdrawal
being made from the Series 2010-2 Cash Collateral 

     

    
      
        
        

      

      
        -25-

        
          

        

      

      
        
        

      

    

    Account,
deposit in the Series 2010-2 Cash Collateral Account an amount equal to the
lesser of (x) the amount of the Series 2010-2 Past Due Rent Payment remaining
after any payment pursuant to clause (i) above and (y) the amount withdrawn from
the Series 2010-2 Cash Collateral Account on account of such Series 2010-2 Lease
Payment Deficit;

     

    (iii) if the
occurrence of such Series 2010-2 Lease Payment Deficit resulted in a withdrawal
being made from the Series 2010-2 Reserve Account pursuant to Section 2.3(d),
deposit in the Series 2010-2 Reserve Account an amount equal to the lesser of
(x) the amount of the Series 2010-2 Past Due Rent Payment remaining after any
payments pursuant to clauses (i) and (ii) above and (y) the excess, if any, of
the Series 2010-2 Required Reserve Account Amount over the Series 2010-2
Available Reserve Account Amount on such day;

     

    (iv) allocate
to the Series 2010-2 Accrued Interest Account the amount, if any, by which the
Series 2010-2 Lease Interest Payment Deficit, if any, relating to such Series
2010-2 Lease Payment Deficit exceeds the amount of the Series 2010-2 Past Due
Rent Payment applied pursuant to clauses (i), (ii) and (iii) above;
and

     

    (v) treat the
remaining amount of the Series 2010-2 Past Due Rent Payment as Principal
Collections allocated to the Series 2010-2 Notes in accordance with Section
2.2(a)(ii) or 2.2(b)(ii), as the case may be.

     

    Section
2.3. Payments to
Noteholders.  On
each Determination Date, as provided below, the Administrator shall instruct the
Paying Agent in writing pursuant to the Administration Agreement to withdraw,
and on the following Distribution Date the Paying Agent, acting in accordance
with such instructions, shall withdraw the amounts required to be withdrawn from
the Collection Account pursuant to Section 2.3(a) below in respect of all
funds available from Interest Collections processed since the preceding
Distribution Date and allocated to the holders of the Series 2010-2
Notes.

     

    (a) Note Interest with Respect
to the Series 2010-2 Notes.  On each Determination Date, the
Administrator shall instruct the Trustee and the Paying Agent in writing
pursuant to the Administration Agreement as to the amount to be withdrawn and
paid pursuant to Section 2.4 from the Series 2010-2 Accrued Interest Account to
the extent funds are anticipated to be available from Interest Collections
allocable to the Series 2010-2 Notes processed from but not including the
preceding Distribution Date through the succeeding Distribution Date in respect
of (i) first,
an amount equal to the Class A Monthly Interest for the Series 2010-2 Interest
Period ending on the day preceding the related Distribution Date, (ii) second, an amount
equal to the amount of any unpaid Class A Shortfall as of the preceding
Distribution Date (together with any accrued interest on such Class A
Shortfall), (iii) third, an amount
equal to the Class B Monthly Interest for the Series 2010-2 Interest Period
ending on the day preceding the related Distribution Date and (iv) fourth, an amount
equal to the amount of any unpaid Class B Shortfall as of the preceding
Distribution Date (together with any accrued interest on such Class B
Shortfall).  On the following Distribution Date, the Trustee shall
withdraw the amounts described 

     

    
      
        
        

      

      
        -26-

        
          

        

      

      
        
        

      

    

    in the
first sentence of this Section 2.3(a) from the Series 2010-2 Accrued Interest
Account and deposit such amounts in the Series 2010-2 Distribution
Account.

     

    (b) Lease Payment Deficit
Notice.  On or before 3:00 p.m. (New York City time) on the
Business Day immediately preceding each Distribution Date, the Administrator
shall notify the Trustee of the amount of any Series 2010-2 Lease Payment
Deficit, such notification to be in the form of Exhibit E (each a
“Lease Payment Deficit
Notice”).

     

    (c) Draws on Series 2010-2
Letters of Credit For Series 2010-2 Lease Interest Payment
Deficits.  If the Administrator determines on the Business Day
immediately preceding any Distribution Date that on such Distribution Date there
will exist a Series 2010-2 Lease Interest Payment Deficit, the Administrator
shall, on or prior to 3:00 p.m. (New York City time) on such Business Day,
instruct the Trustee in writing to draw on the Series 2010-2 Letters of Credit,
if any, and, the Trustee shall, by 5:00 p.m. (New York City time) on such
Business Day draw an amount as set forth in such notice equal to the least of
(i) such Series 2010-2 Lease Interest Payment Deficit, (ii) the excess, if any,
of the sum of (A) the amounts described in clauses (i) through (iv) of Section
2.3(a) above for such Distribution Date and (B) during the Series 2010-2 Rapid
Amortization Period, the Series 2010-2 Trustee’s Fees for such Distribution
Date, over the amounts available from the Series 2010-2 Accrued Interest Account
and (iii) the Series 2010-2 Letter of Credit Liquidity Amount on the Series
2010-2 Letters of Credit by presenting to each Series 2010-2 Letter of Credit
Provider a draft accompanied by a Certificate of Lease Deficit Demand and shall
cause the Lease Deficit Disbursements to be deposited in the Series 2010-2
Distribution Account on such date; provided, however, that if the
Series 2010-2 Cash Collateral Account has been established and funded, the
Trustee shall withdraw from the Series 2010-2 Cash Collateral Account and
deposit in the Series 2010-2 Distribution Account an amount equal to the lesser
of (x) the Series 2010-2 Cash Collateral Percentage on such date of the least of
the amounts described in clauses (i), (ii) and (iii) above and (y) the Series
2010-2 Available Cash Collateral Account Amount on such date and draw an amount
equal to the remainder of such amount on the Series 2010-2 Letters of
Credit.

     

    (d) Withdrawals from Series
2010-2 Reserve Account.  If the Administrator determines on any
Distribution Date that the amounts available from the Series 2010-2 Accrued
Interest Account plus the amount, if
any, to be drawn under the Series 2010-2 Letters of Credit and /or withdrawn
from the Series 2010-2 Cash Collateral Account pursuant to Section 2.3(c) are
insufficient to pay the sum of (A) the amounts described in clauses (i) through
(iv) of Section 2.3(a) above on such Distribution Date and (B) during the
Series 2010-2 Rapid Amortization Period, the Series 2010-2 Trustee’s Fees for
such Distribution Date, the Administrator shall instruct the Trustee in writing
to withdraw from the Series 2010-2 Reserve Account and deposit in the Series
2010-2 Distribution Account on such Distribution Date an amount equal to the
lesser of the Series 2010-2 Available Reserve Account Amount and such
insufficiency.  The Trustee shall withdraw such amount from the Series
2010-2 Reserve Account and deposit such amount in the Series 2010-2 Distribution
Account.

     

    (e) [RESERVED]

     

    (f) Balance.  On
or prior to the second Business Day preceding each Distribution Date, the
Administrator shall instruct the Trustee and the Paying Agent in writing

     

    
      
        
        

      

      
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    pursuant
to the Administration Agreement to pay the balance (after making the payments
required in Section 2.4), if any, of the amounts available from the Series
2010-2 Accrued Interest Account and the Series 2010-2 Distribution Account,
plus the
amount, if any, drawn under the Series 2010-2 Letters of Credit and/or withdrawn
from the Series 2010-2 Cash Collateral Account pursuant to Section 2.3(c) plus the amount, if
any, withdrawn from the Series 2010-2 Reserve Account pursuant to Section 2.3(d)
as follows:

     

    (i) on each
Distribution Date during the Series 2010-2 Revolving Period or the Series 2010-2
Controlled Amortization Period, (1) first, to the Administrator, an amount equal
to the Series 2010-2 Percentage as of the beginning of the Series 2010-2
Interest Period ending on the day preceding such Distribution Date of the
portion of the Monthly Administration Fee payable by ABRCF (as specified in
clause (iii) of the definition thereof) for such Series 2010-2 Interest Period,
(2) second, to the Trustee, an amount equal to the Series 2010-2 Percentage as
of the beginning of such Series 2010-2 Interest Period of the fees owing to the
Trustee under the Indenture for such Series 2010-2 Interest Period, (3) third to
pay any Carrying Charges (other than Carrying Charges provided for above) to the
Persons to whom such amounts are owed, an amount equal to the Series 2010-2
Percentage as of the beginning of such Series 2010-2 Interest Period of such
Carrying Charges (other than Carrying Charges provided for above) for such
Series 2010-2 Interest Period and (4) fourth, the balance, if any (“Excess Collections”),
shall be withdrawn by the Paying Agent from the Series 2010-2 Collection Account
and deposited in the Series 2010-2 Excess Collection Account; and

     

    (ii) on each
Distribution Date during the Series 2010-2 Rapid Amortization Period, (1) first,
to the Trustee, an amount equal to the Series 2010-2 Percentage as of the
beginning of such Series 2010-2 Interest Period ending on the day preceding such
Distribution Date of the fees owing to the Trustee under the Indenture for such
Series 2010-2 Interest Period, (2) second, to the Administrator, an amount equal
to the Series 2010-2 Percentage as of the beginning of such Series 2010-2
Interest Period of the portion of the Monthly Administration Fee (as specified
in clause (iii) of the definition thereof) payable by ABRCF for such Series
2010-2 Interest Period, (3) third, to pay any Carrying Charges (other than
Carrying Charges provided for above) to the Persons to whom such amounts are
owed, an amount equal to the Series 2010-2 Percentage as of the beginning of
such Series 2010-2 Interest Period of such Carrying Charges (other than Carrying
Charges provided for above) for such Series 2010-2 Interest Period and (4)
fourth, so long as the Series 2010-2 Invested Amount is greater than the Monthly
Total Principal Allocations for the Related Month, an amount equal to the excess
of the Series 2010-2 Invested Amount over the Monthly Total Principal
Allocations for the Related Month shall be treated as Principal
Collections.

     

    (g) Shortfalls.  (i)  If
the amounts described in Section 2.3 are insufficient to pay the Class A Monthly
Interest on any Distribution Date, payments of interest to the Class A
Noteholders will be reduced on a pro rata basis by the
amount of such deficiency.  The aggregate amount, if any, of such
deficiency on any Distribution Date, together with the aggregate unpaid amount
of any such deficiencies with respect to all prior Distribution Dates, shall be
referred to as the “Class A
Shortfall”.  Interest shall accrue on the Class A Shortfall at
the Class A Note Rate.

     

    
      
        
        

      

      
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    (ii) If the
amounts described in Section 2.3 are insufficient to pay the amounts described
in clauses (i) and (ii) of Section 2.3(a) and the Class B Monthly Interest on
any Distribution Date, payments of interest to the Class B Noteholders will be
reduced on a pro rata basis by the
amount of such deficiency.  The aggregate amount, if any, of such
deficiency on any Distribution Date (which deficiency on any Distribution Date
shall not exceed the Class B Monthly Interest for the Series 2010-2 Interest
Period ended on the day preceding such Distribution Date), together with the
aggregate unpaid amount of any such deficiencies with respect to all prior
Distribution Dates, shall be referred to as the “Class B
Shortfall”.  Interest shall accrue on the Class B Shortfall at
the Class B Note Rate.

     

    Section
2.4. Payment of Note
Interest.  (a)  On
each Distribution Date, subject to Section 9.8 of the Base Indenture, the Paying
Agent shall, in accordance with Section 6.1 of the Base Indenture, pay the
following amounts in the following order of priority from amounts deposited into
the Series 2010-2 Distribution Account pursuant to Section 2.3:

     

    (i) first, to the Class A
Noteholders, the amounts due to the Class A Noteholders described in Sections
2.3(a)(i) and (ii); and

     

    (ii) second, to the Class
B Noteholders the amounts due to the Class B Noteholders described in Sections
2.3(a)(iii) and (iv).

     

    Section
2.5. Payment of Note
Principal.  (a)  Monthly Payments During
Controlled Amortization Period or Rapid Amortization
Period.  On each Determination Date, commencing on the second
Determination Date during the Series 2010-2 Controlled Amortization Period or
the first Determination Date after the commencement of the Series 2010-2 Rapid
Amortization Period, the Administrator shall instruct the Trustee and the Paying
Agent in writing pursuant to the Administration Agreement and in accordance with
this Section 2.5 as to (1) the amount allocated to the Series 2010-2 Notes
during the Related Month pursuant to Section 2.2(b)(ii), (c)(ii) or (d)(ii), as
the case may be, (2) any amounts to be drawn on the Series 2010-2 Demand Notes
and/or on the Series 2010-2 Letters of Credit (or withdrawn from the Series
2010-2 Cash Collateral Account) pursuant to this Section 2.5 and (3) any amounts
to be withdrawn from the Series 2010-2 Reserve Account pursuant to this Section
2.5 and deposited into the Series 2010-2 Distribution Account.  On the
Distribution Date following each such Determination Date, the Trustee shall
withdraw the amount allocated to the Series 2010-2 Notes during the Related
Month pursuant to Section 2.2(b)(ii), (c)(ii) or (d)(ii), as the case may be,
from the Series 2010-2 Collection Account and deposit such amount in the Series
2010-2 Distribution Account, to be paid to the holders of the Series 2010-2
Notes.

     

    (b) Principal Draws on Series
2010-2 Letters of Credit.  If the Administrator determines on
the Business Day immediately preceding any Distribution Date during the Series
2010-2 Rapid Amortization Period that on such Distribution Date there will exist
a Series 2010-2 Lease Principal Payment Deficit, the Administrator shall
instruct the Trustee in writing to draw on the Series 2010-2 Letters of Credit,
if any, as provided below.  Upon receipt of a notice by the Trustee
from the Administrator in respect of a Series 2010-2 Lease Principal Payment
Deficit on or prior to 3:00 p.m. (New York City time) on the Business Day
immediately preceding a Distribution Date, the Trustee shall, by 5:00 p.m. (New
York City time) on such Business Day draw an amount as set forth in such notice
equal to the least of (i) such Series 2010-2 Lease 

     

    
      
        
        

      

      
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    Principal
Payment Deficit, (ii) the Principal Deficit Amount for such Distribution Date
and (iii) the Series 2010-2 Letter of Credit Liquidity Amount on the Series
2010-2 Letters of Credit by presenting to each Series 2010-2 Letter of Credit
Provider a draft accompanied by a Certificate of Lease Deficit Demand and shall
cause the Lease Deficit Disbursements to be deposited in the Series 2010-2
Distribution Account on such date; provided, however, that if the
Series 2010-2 Cash Collateral Account has been established and funded, the
Trustee shall withdraw from the Series 2010-2 Cash Collateral Account and
deposit in the Series 2010-2 Distribution Account an amount equal to the lesser
of (x) the Series 2010-2 Cash Collateral Percentage for such date of the lesser
of the Series 2010-2 Lease Principal Payment Deficit and the Principal Deficit
Amount for such Distribution Date and (y) the Series 2010-2 Available Cash
Collateral Account Amount on such date and draw an amount equal to the remainder
of such amount on the Series 2010-2 Letters of
Credit.  Notwithstanding any of the preceding to the contrary, during
the period after the date of the filing by any of the Lessees of a petition for
relief under Chapter 11 of the Bankruptcy Code until the date on which each of
the Lessees shall have resumed making all payments of the portion of Monthly
Base Rent relating to Loan Interest required to be made under the AESOP I
Operating Lease, the Administrator shall only instruct the Trustee to draw on
the Series 2010-2 Letters of Credit (or withdraw from the Series 2010-2 Cash
Collateral Account, if applicable) pursuant to this Section 2.5(b), and the
Trustee shall only draw (or withdraw), an amount equal to the lesser of (i) the
amount determined as provided in the preceding sentence and (ii) the excess, if
any, of (x) the Series 2010-2 Liquidity Amount on such date over (y) the Series
2010-2 Required Liquidity Amount on such date.

     

    (c) Final Distribution
Date.  Each of the entire Class A Invested Amount and the
entire Class B Invested Amount shall be due and payable on the Series 2010-2
Final Distribution Date.  In connection therewith:

     

    (i) Demand Note
Draw.  If the amount to be deposited in the Series 2010-2
Distribution Account in accordance with Section 2.5(a) together with any amounts
to be deposited therein in accordance with Section 2.5(b) on the Series 2010-2
Final Distribution Date is less than the Series 2010-2 Invested Amount and there
are any Series 2010-2 Letters of Credit on such date, then, prior to 10:00 a.m.
(New York City time) on the second Business Day prior to the Series 2010-2 Final
Distribution Date, the Administrator shall instruct the Trustee in writing to
make a demand (a “Demand Notice”)
substantially in the form attached hereto as Exhibit F on the
Demand Note Issuers for payment under the Series 2010-2 Demand Notes in an
amount equal to the lesser of (i) such insufficiency and (ii) the Series 2010-2
Letter of Credit Amount.  The Trustee shall, prior to 12:00 noon (New
York City time) on the second Business Day preceding such Series 2010-2 Final
Distribution Date deliver such Demand Notice to the Demand Note Issuers; provided, however, that if an
Event of Bankruptcy (or the occurrence of an event described in clause (a) of
the definition thereof, without the lapse of a period of 60 consecutive days)
with respect to a Demand Note Issuer shall have occurred and be continuing, the
Trustee shall not be required to deliver such Demand Notice to such Demand Note
Issuer.  The Trustee shall cause the proceeds of any demand on the
Series 2010-2 Demand Notes to be deposited into the Series 2010-2 Distribution
Account.

     

    
      
        
        

      

      
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    (ii) Letter of Credit
Draw.  In the event that either (x) on or prior to 10:00 a.m.
(New York City time) on the Business Day immediately preceding the Series 2010-2
Final Distribution Date a Demand Notice has been transmitted by the Trustee to
the Demand Note Issuers pursuant to clause (i) of this Section 2.5(c) and any
Demand Note Issuer shall have failed to pay to the Trustee or deposit into the
Series 2010-2 Distribution Account the amount specified in such Demand Notice in
whole or in part or (y) due to the occurrence of an Event of Bankruptcy (or the
occurrence of an event described in clause (a) of the definition thereof,
without the lapse of a period of 60 consecutive days) with respect to one or
more of the Demand Note Issuers, the Trustee shall not have delivered such
Demand Notice to any Demand Note Issuer on the second Business Day preceding the
Series 2010-2 Final Distribution Date, then, in the case of (x) or (y) the
Trustee shall draw on the Series 2010-2 Letters of Credit by 12:00 noon (New
York City time) on such Business Day an amount equal to the lesser of (a) the
amount that the Demand Note Issuers so failed to pay under the Series 2010-2
Demand Notes (or, the amount that the Trustee failed to demand for payment
thereunder) and (b) the Series 2010-2 Letter of Credit Amount on such Business
Day by presenting to each Series 2010-2 Letter of Credit Provider a draft
accompanied by a Certificate of Unpaid Demand Note Demand; provided, however, that if the
Series 2010-2 Cash Collateral Account has been established and funded, the
Trustee shall withdraw from the Series 2010-2 Cash Collateral Account and
deposit in the Series 2010-2 Distribution Account an amount equal to the lesser
of (x) the Series 2010-2 Cash Collateral Percentage on such Business Day of the
amount that the Demand Note Issuers so failed to pay under the Series 2010-2
Demand Notes (or, the amount that the Trustee failed to demand for payment
thereunder) and (y) the Series 2010-2 Available Cash Collateral Account Amount
on such Business Day and draw an amount equal to the remainder of the amount
that the Demand Note Issuers failed to pay under the Series 2010-2 Demand Notes
(or, the amount that the Trustee failed to demand for payment thereunder) on the
Series 2010-2 Letters of Credit.  The Trustee shall deposit, or cause
the deposit of, the proceeds of any draw on the Series 2010-2 Letters of Credit
and the proceeds of any withdrawal from the Series 2010-2 Cash Collateral
Account to be deposited in the Series 2010-2 Distribution Account.

     

    (iii) Reserve Account
Withdrawal.  If, after giving effect to the deposit into the
Series 2010-2 Distribution Account of the amount to be deposited in accordance
with Section 2.5(a) and the amounts described in clauses (i) and (ii) of this
Section 2.5(c), the amount to be deposited in the Series 2010-2 Distribution
Account with respect to the Series 2010-2 Final Distribution Date is or will be
less than the Series 2010-2 Invested Amount, then, prior to 12:00 noon (New York
City time) on the second Business Day prior to such Series 2010-2 Final
Distribution Date, the Administrator shall instruct the Trustee in writing to
with­draw from the Series 2010-2 Reserve Account, an amount equal to the
lesser of the Series 2010-2 Available Reserve Account Amount and such remaining
insufficiency and deposit it in the Series 2010-2 Distribution Account on such
Series 2010-2 Final Distribution Date.

     

    (d) Principal Deficit
Amount.  On each Distribution Date, other than the Series
2010-2 Final Distribution Date, on which the Principal Deficit Amount is greater
than zero, amounts shall be transferred to the Series 2010-2 Distribution
Account as follows:

     

    
      
        
        

      

      
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    (i) Demand Note
Draw.  If on any Determination Date, the Administrator
determines that the Principal Deficit Amount with respect to the next succeeding
Distribution Date will be greater than zero and there are any Series 2010-2
Letters of Credit on such date, prior to 10:00 a.m. (New York City time) on the
second Business Day prior to such Distribution Date, the Administrator shall
instruct the Trustee in writing to deliver a Demand Notice to the Demand Note
Issuers demanding payment of an amount equal to the lesser of (A) the Principal
Deficit Amount and (B) the Series 2010-2 Letter of Credit Amount.  The
Trustee shall, prior to 12:00 noon (New York City time) on the second Business
Day preceding such Distribution Date, deliver such Demand Notice to the Demand
Note Issuers; provided, however, that if an
Event of Bankruptcy (or the occurrence of an event described in clause (a) of
the definition thereof, without the lapse of a period of 60 consecutive days)
with respect to a Demand Note Issuer shall have occurred and be continuing, the
Trustee shall not be required to deliver such Demand Notice to such Demand Note
Issuer.  The Trustee shall cause the proceeds of any demand on the
Series 2010-2 Demand Note to be deposited into the Series 2010-2 Distribution
Account.

     

    (ii) Letter of Credit
Draw.  In the event that either (x) on or prior to 10:00 a.m.
(New York City time) on the Business Day prior to such Distribution Date, any
Demand Note Issuer shall have failed to pay to the Trustee or deposit into the
Series 2010-2 Distribution Account the amount specified in such Demand Notice in
whole or in part or (y) due to the occurrence of an Event of Bankruptcy (or the
occurrence of an event described in clause (a) of the definition thereof,
without the lapse of a period of 60 consecutive days) with respect to any Demand
Note Issuer, the Trustee shall not have delivered such Demand Notice to any
Demand Note Issuer on the second Business Day preceding such Distribution Date,
then, in the case of (x) or (y) the Trustee shall on such Business Day draw on
the Series 2010-2 Letters of Credit an amount equal to the lesser of
(i) Series 2010-2 Letter of Credit Amount and (ii) the aggregate
amount that the Demand Note Issuers failed to pay under the Series 2010-2 Demand
Notes (or, the amount that the Trustee failed to demand for payment thereunder)
by presenting to each Series 2010-2 Letter of Credit Provider a draft
accompanied by a Certificate of Unpaid Demand Note Demand; provided, however, that if the
Series 2010-2 Cash Collateral Account has been established and funded, the
Trustee shall withdraw from the Series 2010-2 Cash Collateral Account and
deposit in the Series 2010-2 Distribution Account an amount equal to the lesser
of (x) the Series 2010-2 Cash Collateral Percentage on such Business Day of the
aggregate amount that the Demand Note Issuers so failed to pay under the Series
2010-2 Demand Notes (or, the amount that the Trustee failed to demand for
payment thereunder) and (y) the Series 2010-2 Available Cash Collateral Account
Amount on such Business Day and draw an amount equal to the remainder of the
aggregate amount that the Demand Note Issuers failed to pay under the Series
2010-2 Demand Notes (or, the amount that the Trustee failed to demand for
payment thereunder) on the Series 2010-2 Letters of Credit.  The
Trustee shall deposit into, or cause the deposit of, the proceeds of any draw on
the Series 2010-2 Letters of Credit and the proceeds of any withdrawal from the
Series 2010-2 Cash Collateral Account to be deposited in the Series 2010-2
Distribution Account.

     

    
      
        
        

      

      
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    (iii) Reserve Account
Withdrawal.  If the Series 2010-2 Letter of Credit Amount will
be less than the Principal Deficit Amount on any Distribution Date, then, prior
to 12:00 noon (New York City time) on the second Business Day prior to such
Distribution Date, the Administrator shall instruct the Trustee in writing to
withdraw from the Series 2010-2 Reserve Account, an amount equal to the lesser
of (x) the Series 2010-2 Available Reserve Account Amount and (y) the amount by
which the Principal Deficit Amount exceeds the amounts to be deposited in the
Series 2010-2 Distribution Account in accordance with clauses (i) and (ii) of
this Section 2.5(d) and deposit it in the Series 2010-2 Distribution Account on
such Distribution Date.

     

    (e) Distributions.  (i)  Class A
Notes.  On each Distribution Date occurring on or after the
date a withdrawal is made from the Series 2010-2 Collection Account pursuant to
Section 2.5(a) or amounts are deposited in the Series 2010-2 Distribution
Account pursuant to Section 2.5(b), (c) or (d) the Paying Agent shall, in
accordance with Section 6.1 of the Base Indenture, pay pro rata to each Class A
Noteholder from the Series 2010-2 Distribution Account the amount deposited
therein pursuant to Section 2.5(a), (b), (c) or (d), to the extent necessary to
pay the Class A Controlled Amortization Amount during the Series 2010-2
Controlled Amortization Period or to the extent necessary to pay the Class A
Invested Amount during the Series 2010-2 Rapid Amortization Period.

     

    (ii)           Class B
Notes.  On each Distribution Date occurring on or after the
date a withdrawal is made from the Series 2010-2 Collection Account pursuant to
Section 2.5(a) or amounts are deposited in the Series 2010-2 Distribution
Account pursuant to Section 2.5(b), (c) or (d) the Paying Agent shall, in
accordance with Section 6.1 of the Base Indenture, pay pro rata to each Class B
Noteholder from the Series 2010-2 Distribution Account the amount deposited
therein pursuant to Section 2.5(a), (b), (c) or (d) less the aggregate amount
applied to make the payments required pursuant to Section 2.5(e)(i), to the
extent necessary to pay the Class B Controlled Amortization Amount during the
Series 2010-2 Controlled Amortization Period or to the extent necessary to pay
the Class B Invested Amount during the Series 2010-2 Rapid Amortization
Period.

     

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

     

    Section
2.7. Series 2010-2 Reserve
Account.  (a)  Establishment of Series
2010-2 Reserve Account.  ABRCF shall establish and maintain in
the name of the Series 2010-2 Agent for the benefit of the Series 2010-2
Noteholders, or cause to be established and maintained, an account (the “Series 2010-2 Reserve
Account”), bearing a designation clearly 

     

    
      
        
        

      

      
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    indicating
that the funds deposited therein are held for the benefit of the Series 2010-2
Noteholders.  The Series 2010-2 Reserve Account shall be maintained
(i) with a Qualified Institution, or (ii) as a segregated trust account with the
corporate trust department of a depository institution or trust company having
corporate trust powers and acting as trustee for funds deposited in the Series
2010-2 Reserve Account; provided that, if at
any time such Qualified Institution is no longer a Qualified Institution or the
credit rating of any securities issued by such depositary institution or trust
company shall be reduced to below “BBB (low)” by DBRS or “Baa2” by Moody’s, then
ABRCF shall, within thirty (30) days of such reduction, establish a new Series
2010-2 Reserve Account with a new Qualified Institution.  If the
Series 2010-2 Reserve Account is not maintained in accordance with the previous
sentence, ABRCF shall establish a new Series 2010-2 Reserve Account, within ten
(10) Business Days after obtaining knowledge of such fact, which complies with
such sentence, and shall instruct the Series 2010-2 Agent in writing to transfer
all cash and investments from the non-qualifying Series 2010-2 Reserve Account
into the new Series 2010-2 Reserve Account.  Initially, the Series
2010-2 Reserve Account will be established with The Bank of New York Mellon
Trust Company, N.A.

     

    (b) Administration of the Series
2010-2 Reserve Account.  The Administrator may instruct the
institution maintaining the Series 2010-2 Reserve Account to invest funds on
deposit in the Series 2010-2 Reserve Account from time to time in Permitted
Investments; provided, however, that any
such investment shall mature not later than the Business Day prior to the
Distribution Date following the date on which such funds were received, unless
any Permitted Investment held in the Series 2010-2 Reserve Account is held with
the Paying Agent, then such investment may mature on such Distribution Date and
such funds shall be available for withdrawal on or prior to such Distribution
Date.  All such Permitted Investments will be credited to the Series
2010-2 Reserve Account and any such Permitted Investments that constitute
(i) physical property (and that is not either a United States security
entitlement or a security entitlement) shall be physically delivered to the
Trustee; (ii) United States security entitlements or security entitlements
shall be controlled (as defined in Section 8-106 of the New York UCC) by
the Trustee pending maturity or disposition, and (iii) uncertificated
securities (and not United States security entitlements) shall be delivered to
the Trustee by causing the Trustee to become the registered holder of such
securities.  The Trustee shall, at the expense of ABRCF, take such
action as is required to maintain the Trustee’s security interest in the
Permitted Investments credited to the Series 2010-2 Reserve
Account.  ABRCF shall not direct the Trustee to dispose of (or permit
the disposal of) any Permitted Investments prior to the maturity thereof to the
extent such disposal would result in a loss of the purchase price of such
Permitted Investments.  In the absence of written investment
instructions hereunder, funds on deposit in the Series 2010-2 Reserve Account
shall remain uninvested.

     

    (c) Earnings from Series 2010-2
Reserve Account.  All interest and earnings (net of losses and
investment expenses) paid on funds on deposit in the Series 2010-2 Reserve
Account shall be deemed to be on deposit therein and available for
distribution.

     

    (d) Series 2010-2 Reserve
Account Constitutes Additional Collateral for Series 2010-2
Notes.  In order to secure and provide for the repayment and
payment of ABRCF’s Obligations with respect to the Series 2010-2 Notes, ABRCF
hereby grants a security interest in and assigns, pledges, grants, transfers and
sets over to the Trustee, for the benefit of the Series 

     

    
      
        
        

      

      
        -34-

        
          

        

      

      
        
        

      

    

    2010-2
Noteholders, all of ABRCF’s right, title and interest in and to the following
(whether now or hereafter existing or acquired):  (i) the Series
2010-2 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 2010-2
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
2010-2 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 2010-2 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 items in the
foregoing clauses (i) through (vi) are referred to, collectively, as the
“Series 2010-2 Reserve
Account Collateral”).  The Trustee shall possess all right,
title and interest in and to all funds on deposit from time to time in the
Series 2010-2 Reserve Account and in all proceeds thereof, and shall be the only
person authorized to originate entitlement orders in respect of the Series
2010-2 Reserve Account.  The Series 2010-2 Reserve Account Collateral
shall be under the sole dominion and control of the Trustee for the benefit of
the Series 2010-2 Noteholders.  The Series 2010-2 Agent hereby agrees
(i) to act as the securities intermediary (as defined in Section 8-102(a)(14) of
the New York UCC) with respect to the Series 2010-2 Reserve Account; (ii)
that its jurisdiction as securities intermediary is New York; (iii) that
each item of property (whether investment property, financial asset, security,
instrument or cash) credited to the Series 2010-2 Reserve Account shall be
treated as a financial asset (as defined in Section 8-102(a)(9) of the
New York UCC) and (iv) to comply with any entitlement order (as defined in
Section 8-102(a)(8) of the New York UCC) issued by the
Trustee.

     

    (e) Series 2010-2 Reserve
Account Surplus.  In the event that the Series 2010-2 Reserve
Account Surplus on any Distribution Date, after giving effect to all withdrawals
from the Series 2010-2 Reserve Account, is greater than zero, if no Series
2010-2 Enhancement Deficiency or AESOP I Operating Lease Vehicle Deficiency
would result therefrom or exist thereafter, the Trustee, acting in accordance
with the written instructions of the Administrator pursuant to the
Administration Agreement, shall withdraw from the Series 2010-2 Reserve Account
an amount equal to the Series 2010-2 Reserve Account Surplus and shall pay such
amount to ABRCF.

     

    (f) Termination of Series 2010-2
Reserve Account.  Upon the termination of the Indenture
pursuant to Section 11.1 of the Base Indenture, the Trustee, acting in
accordance with the written instructions of the Administrator, after the prior
payment of all amounts owing to the Series 2010-2 Noteholders and payable from
the Series 2010-2 Reserve Account as provided herein, shall withdraw from the
Series 2010-2 Reserve Account all amounts on deposit therein for payment to
ABRCF.

     

    Section
2.8. Series 2010-2 Letters of
Credit and Series 2010-2 Cash Collateral Account.  (a) Series 2010-2 Letters of
Credit and Series 2010-2 Cash Collateral Account Constitute Additional
Collateral for Series 2010-2 Notes.  In order to secure and
provide for the repayment and payment of ABRCF’s Obligations with respect to the
Series 2010-2 Notes, ABRCF hereby grants a security interest in and assigns,
pledges, grants, transfers and sets over to the Trustee, for the benefit of the
Series 2010-2 Noteholders, all of ABRCF’s right, title and 

     

    
      
        
        

      

      
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    interest
in and to the following (whether now or hereafter existing or
acquired):  (i) each Series 2010-2 Letter of Credit;
(ii) the Series 2010-2 Cash Collateral Account, including any security
entitlement thereto; (iii) all funds on deposit in the Series 2010-2 Cash
Collateral Account from time to time; (iv) all certificates and
instruments, if any, representing or evidencing any or all of the Series 2010-2
Cash Collateral Account or the funds on deposit therein from time to time;
(v) all investments made at any time and from time to time with monies in
the Series 2010-2 Cash Collateral Account, whether constituting securities,
instruments, general intangibles, investment property, financial assets or other
property; (vi) all interest, dividends, cash, instruments and other
property from time to time received, receivable or otherwise distributed in
respect of or in exchange for the Series 2010-2 Cash Collateral Account, the
funds on deposit therein from time to time or the investments made with such
funds; and (vii) all proceeds of any and all of the foregoing, including,
without limitation, cash (the items in the foregoing clauses (ii) through
(vii) are referred to, collectively, as the “Series 2010-2 Cash
Collateral Account Collateral”).  The Trustee shall, for the
benefit of the Series 2010-2 Noteholders, possess all right, title and interest
in all funds on deposit from time to time in the Series 2010-2 Cash Collateral
Account and in all proceeds thereof, and shall be the only person authorized to
originate entitlement orders in respect of the Series 2010-2 Cash Collateral
Account.  The Series 2010-2 Cash Collateral Account shall be under the
sole dominion and control of the Trustee for the benefit of the Series 2010-2
Noteholders.  The Series 2010-2 Agent hereby agrees (i) to act as the
securities intermediary (as defined in Section 8-102(a)(14) of the New York
UCC) with respect to the Series 2010-2 Cash Collateral Account; (ii) that its
jurisdiction as a securities intermediary is New York, (iii) that each item of
property (whether investment property, financial asset, security, instrument or
cash) credited to the Series 2010-2 Cash Collateral Account shall be treated as
a financial asset (as defined in Section 8-102(a)(9) of the New York UCC)
and (iv) to comply with any entitlement order (as defined in Section 8-102(a)(8)
of the New York UCC) issued by the Trustee.

     

    (b) Series 2010-2 Letter of
Credit Expiration Date.  If prior to the date which is ten (10)
days prior to the then - scheduled Series 2010-2 Letter of Credit Expiration
Date with respect to any Series 2010-2 Letter of Credit, excluding the amount
available to be drawn under such Series 2010-2 Letter of Credit but taking into
account each substitute Series 2010-2 Letter of Credit which has been obtained
from a Series 2010-2 Eligible Letter of Credit Provider and is in full force and
effect on such date, the Series 2010-2 Enhancement Amount would be equal to or
more than the Series 2010-2 Required Enhancement Amount and the Series 2010-2
Liquidity Amount would be equal to or greater than the Series 2010-2 Required
Liquidity Amount, then the Administrator shall notify the Trustee in writing no
later than two (2) Business Days prior to such Series 2010-2 Letter of Credit
Expiration Date of such determination.  If prior to the date which is
ten (10) days prior to the then-scheduled Series 2010-2 Letter of Credit
Expiration Date with respect to any Series 2010-2 Letter of Credit, excluding
the amount available to be drawn under such Series 2010-2 Letter of Credit but
taking into account a substitute Series 2010-2 Letter of Credit which has been
obtained from a Series 2010-2 Eligible Letter of Credit Provider and is in full
force and effect on such date, the Series 2010-2 Enhancement Amount would be
less than the Series 2010-2 Required Enhancement Amount or the Series 2010-2
Liquidity Amount would be less than the Series 2010-2 Required Liquidity Amount,
then the Administrator shall notify the Trustee in writing no later than two (2)
Business Days prior to such Series 2010-2 Letter of Credit Expiration Date of
(x) the greater of (A) the excess, if any, of the Series 2010-2 Required
Enhancement Amount over the Series 2010-2 Enhancement Amount, 

     

    
      
        
        

      

      
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    excluding
the available amount under such expiring Series 2010-2 Letter of Credit but
taking into account any substitute Series 2010-2 Letter of Credit which has been
obtained from a Series 2010-2 Eligible Letter of Credit Provider and is in full
force and effect, on such date, and (B) the excess, if any, of the Series 2010-2
Required Liquidity Amount over the Series 2010-2 Liquidity Amount, excluding the
available amount under such expiring Series 2010-2 Letter of Credit but taking
into account any substitute Series 2010-2 Letter of Credit which has been
obtained from a Series 2010-2 Eligible Letter of Credit Provider and is in full
force and effect, on such date, and (y) the amount available to be drawn on such
expiring Series 2010-2 Letter of Credit on such date.  Upon receipt of
such notice by the Trustee on or prior to 10:00 a.m. (New York City time) on any
Business Day, the Trustee shall, by 12:00 noon (New York City time) on such
Business Day (or, in the case of any notice given to the Trustee after 10:00
a.m. (New York City time), by 12:00 noon (New York City time) on the next
following Business Day), draw the lesser of the amounts set forth in clauses (x)
and (y) above on such expiring Series 2010-2 Letter of Credit by presenting a
draft accompanied by a Certificate of Termination Demand and shall cause the
Termination Disbursement to be deposited in the Series 2010-2 Cash Collateral
Account.

     

    If the
Trustee does not receive the notice from the Administrator described in the
first paragraph of this Section 2.8(b) on or prior to the date that is two (2)
Business Days prior to each Series 2010-2 Letter of Credit Expiration Date, the
Trustee shall, by 12:00 noon (New York City time) on such Business Day draw the
full amount of such Series 2010-2 Letter of Credit by presenting a draft
accompanied by a Certificate of Termination Demand and shall cause the
Termination Disbursement to be deposited in the Series 2010-2 Cash Collateral
Account.

     

    (c) Series 2010-2 Letter of
Credit Providers.  The Administrator shall notify the Trustee
in writing within one (1) Business Day of becoming aware that (i) the long-term
senior unsecured debt credit rating of any Series 2010-2 Letter of Credit
Provider has fallen below “A (high)” as determined by DBRS or “A1” as determined
by Moody’s or (ii) the short-term senior unsecured debt credit rating of any
Series 2010-2 Letter of Credit Provider has fallen below “R-1” as determined by
DBRS or “P-1” as determined by Moody’s.  At such time the
Administrator shall also notify the Trustee of (i) the greater of (A) the
excess, if any, of the Series 2010-2 Required Enhancement Amount over the Series
2010-2 Enhancement Amount, excluding the available amount under the Series
2010-2 Letter of Credit issued by such Series 2010-2 Letter of Credit Provider,
on such date, and (B) the excess, if any, of the Series 2010-2 Required
Liquidity Amount over the Series 2010-2 Liquidity Amount, excluding the
available amount under such Series 2010-2 Letter of Credit, on such date, and
(ii) the amount available to be drawn on such Series 2010-2 Letter of
Credit on such date.  Upon receipt of such notice by the Trustee on or
prior to 10:00 a.m. (New York City time) on any Business Day, the Trustee shall,
by 12:00 noon (New York City time) on such Business Day (or, in the case of any
notice given to the Trustee after 10:00 a.m. (New York City time), by 12:00 noon
(New York City time) on the next following Business Day), draw on such Series
2010-2 Letter of Credit in an amount equal to the lesser of the amounts in
clause (i) and clause (ii) of the immediately preceding sentence on
such Business Day by presenting a draft accompanied by a Certificate of
Termination Demand and shall cause the Termination Disbursement to be deposited
in the Series 2010-2 Cash Collateral Account.

     

    (d) Termination Date Demands on
the Series 2010-2 Letters of Credit.  Prior to 10:00 a.m. (New
York City time) on the Business Day immediately succeeding the Series

     

    
      
        
        

      

      
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    2010-2
Letter of Credit Termination Date, the Administrator shall determine the Series
2010-2 Demand Note Payment Amount, if any, as of the Series 2010-2 Letter of
Credit Termination Date and, if the Series 2010-2 Demand Note Payment Amount is
greater than zero, instruct the Trustee in writing to draw on the Series 2010-2
Letters of Credit.  Upon receipt of any such notice by the Trustee on
or prior to 11:00 a.m. (New York City time) on a Business Day, the Trustee
shall, by 12:00 noon (New York City time) on such Business Day draw an amount
equal to the lesser of (i) the Series 2010-2 Demand Note Payment Amount and
(ii) the Series 2010-2 Letter of Credit Liquidity Amount on the Series
2010-2 Letters of Credit by presenting to each Series 2010-2 Letter of Credit
Provider a draft accompanied by a Certificate of Termination Date Demand and
shall cause the Termination Date Disbursement to be deposited in the Series
2010-2 Cash Collateral Account; provided, however, that if the
Series 2010-2 Cash Collateral Account has been established and funded, the
Trustee shall draw an amount equal to the product of (a) 100% minus the Series
2010-2 Cash Collateral Percentage and (b) the lesser of the amounts referred to
in clause (i) and (ii) on such Business Day on the Series 2010-2 Letters of
Credit as calculated by the Administrator and provided in writing to the
Trustee.

     

    (e) Draws on the Series 2010-2
Letters of Credit.  If there is more than one Series 2010-2
Letter of Credit on the date of any draw on the Series 2010-2 Letters of Credit
pursuant to the terms of this Supplement, the Administrator shall instruct the
Trustee, in writing, to draw on each Series 2010-2 Letter of Credit in an amount
equal to the Pro Rata Share of the Series 2010-2 Letter of Credit Provider
issuing such Series 2010-2 Letter of Credit of the amount of such draw on the
Series 2010-2 Letters of Credit.

     

    (f) Establishment of Series
2010-2 Cash Collateral Account.  On or prior to the date of any
drawing under a Series 2010-2 Letter of Credit pursuant to Section 2.8(b),
(c) or (d) above, ABRCF shall establish and maintain in the name of the Trustee
for the benefit of the Series 2010-2 Noteholders, or cause to be established and
maintained, an account (the “Series 2010-2 Cash
Collateral Account”), bearing a designation clearly indicating that the
funds deposited therein are held for the benefit of the Series 2010-2
Noteholders.  The Series 2010-2 Cash Collateral Account shall be
maintained (i) with a Qualified Institution, or (ii) as a segregated
trust account with the corporate trust department of a depository institution or
trust company having corporate trust powers and acting as trustee for funds
deposited in the Series 2010-2 Cash Collateral Account; provided, however, that if at
any time such Qualified Institution is no longer a Qualified Institution or the
credit rating of any securities issued by such depository institution or trust
company shall be reduced to below “BBB (low)” by DBRS or “Baa3” by Moody’s, then
ABRCF shall, within thirty (30) days of such reduction, establish a new Series
2010-2 Cash Collateral Account with a new Qualified Institution or a new
segregated trust account with the corporate trust department of a depository
institution or trust company having corporate trust powers and acting as trustee
for funds deposited in the Series 2010-2 Cash Collateral Account.  If
a new Series 2010-2 Cash Collateral Account is established, ABRCF shall instruct
the Trustee in writing to transfer all cash and investments from the
non-qualifying Series 2010-2 Cash Collateral Account into the new Series 2010-2
Cash Collateral Account.

     

    (g) Administration of the Series
2010-2 Cash Collateral Account.  ABRCF may instruct (by
standing instructions or otherwise) the institution maintaining the Series
2010-2 Cash Collateral Account to invest funds on deposit in the Series 2010-2
Cash Collateral Account from time to time in Permitted Investments; provided, however, that any
such investment shall 

     

    
      
        
        

      

      
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    mature
not later than the Business Day prior to the Distribution Date following the
date on which such funds were received, unless any Permitted Investment held in
the Series 2010-2 Cash Collateral Account is held with the Paying Agent, in
which case such investment may mature on such Distribution Date so long as such
funds shall be available for withdrawal on or prior to such Distribution
Date.  All such Permitted Investments will be credited to the Series
2010-2 Cash Collateral Account and any such Permitted Investments that
constitute (i) physical property (and that is not either a United States
security entitlement or a security entitlement) shall be physically delivered to
the Trustee; (ii) United States security entitlements or security
entitlements shall be controlled (as defined in Section 8-106 of the New York
UCC) by the Trustee pending maturity or disposition, and
(iii) uncertificated securities (and not United States security
entitlements) shall be delivered to the Trustee by causing the Trustee to become
the registered holder of such securities.  The Trustee shall, at the
expense of ABRCF, take such action as is required to maintain the Trustee’s
security interest in the Permitted Investments credited to the Series 2010-2
Cash Collateral Account.  ABRCF shall not direct the Trustee to
dispose of (or permit the disposal of) any Permitted Investments prior to the
maturity thereof to the extent such disposal would result in a loss of the
purchase price of such Permitted Investments.  In the absence of
written investment instructions hereunder, funds on deposit in the Series 2010-2
Cash Collateral Account shall remain uninvested.

     

    (h) Earnings from Series 2010-2
Cash Collateral Account.  All interest and earnings (net of
losses and investment expenses) paid on funds on deposit in the Series 2010-2
Cash Collateral Account shall be deemed to be on deposit therein and available
for distribution.

     

    (i) Series 2010-2 Cash
Collateral Account Surplus.  In the event that the Series
2010-2 Cash Collateral Account Surplus on any Distribution Date (or, after the
Series 2010-2 Letter of Credit Termination Date, on any date) is greater than
zero, the Trustee, acting in accordance with the written instructions of the
Administrator, shall withdraw from the Series 2010-2 Cash Collateral Account an
amount equal to the Series 2010-2 Cash Collateral Account Surplus and shall pay
such amount:  first, to the Series
2010-2 Letter of Credit Providers to the extent of any unreimbursed drawings
under the related Series 2010-2 Reimbursement Agreement, for application in
accordance with the provisions of the related Series 2010-2 Reimbursement
Agreement, and, second, to ABRCF any
remaining amount.

     

    (j) Termination of Series 2010-2
Cash Collateral Account.  Upon the termination of this
Supplement in accordance with its terms, the Trustee, acting in accordance with
the written instructions of the Administrator, after the prior payment of all
amounts owing to the Series 2010-2 Noteholders and payable from the Series
2010-2 Cash Collateral Account as provided herein, shall withdraw from the
Series 2010-2 Cash Collateral Account all amounts on deposit therein (to the
extent not withdrawn pursuant to Section 2.8(i) above) and shall pay such
amounts:  first, to the Series
2010-2 Letter of Credit Providers to the extent of any unreimbursed drawings
under the related Series 2010-2 Reimbursement Agreement, for application in
accordance with the provisions of the related Series 2010-2 Reimbursement
Agreement, and, second, to ABRCF any
remaining amount.

     

    Section
2.9. Series 2010-2 Distribution
Account.  (a)  Establishment of Series
2010-2 Distribution Account.  ABRCF shall establish and
maintain in the name of the Trustee for the benefit of the Series 2010-2
Noteholders, or cause to be established and maintained, an 

     

    
      
        
        

      

      
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    account
(the “Series 2010-2
Distribution Account”), bearing a designation clearly indicating that the
funds deposited therein are held for the benefit of the Series 2010-2
Noteholders.  The Series 2010-2 Distribution Account shall be
maintained (i) with a Qualified Institution, or (ii) as a segregated trust
account with the corporate trust department of a depository institution or trust
company having corporate trust powers and acting as trustee for funds deposited
in the Series 2010-2 Distribution Account; provided, however, that if at
any time such Qualified Institution is no longer a Qualified Institution or the
credit rating of any securities issued by such depositary institution or trust
company shall be reduced to below “BBB (low)” by DBRS or “Baa3” by Moody’s, then
ABRCF shall, within thirty (30) days of such reduction, establish a new Series
2010-2 Distribution Account with a new Qualified Institution.  If the
Series 2010-2 Distribution Account is not maintained in accordance with the
previous sentence, ABRCF shall establish a new Series 2010-2 Distribution
Account, within ten (10) Business Days after obtaining knowledge of such fact,
which complies with such sentence, and shall instruct the Series 2010-2 Agent in
writing to transfer all cash and investments from the non-qualifying Series
2010-2 Distribution Account into the new Series 2010-2 Distribution
Account.  Initially, the Series 2010-2 Distribution Account will be
established with The Bank of New York Mellon Trust Company, N.A.

     

    (b) Administration of the Series
2010-2 Distribution Account.  The Administrator may instruct
the institution maintaining the Series 2010-2 Distribution Account to invest
funds on deposit in the Series 2010-2 Distribution Account from time to time in
Permitted Investments; provided, however, that any
such investment shall mature not later than the Business Day prior to the
Distribution Date following the date on which such funds were received, unless
any Permitted Investment held in the Series 2010-2 Distribution Account is held
with the Paying Agent, then such investment may mature on such Distribution Date
and such funds shall be available for withdrawal on or prior to such
Distribution Date.  All such Permitted Investments will be credited to
the Series 2010-2 Distribution Account and any such Permitted Investments that
constitute (i) physical property (and that is not either a United States
security entitlement or a security entitlement) shall be physically delivered to
the Trustee; (ii) United States security entitlements or security
entitlements shall be controlled (as defined in Section 8-106 of the
New York UCC) by the Trustee pending maturity or disposition, and
(iii) uncertificated securities (and not United States security
entitlements) shall be delivered to the Trustee by causing the Trustee to become
the registered holder of such securities.  The Trustee shall, at the
expense of ABRCF, take such action as is required to maintain the Trustee’s
security interest in the Permitted Investments credited to the Series 2010-2
Distribution Account.  ABRCF shall not direct the Trustee to dispose
of (or permit the disposal of) any Permitted Investments prior to the maturity
thereof to the extent such disposal would result in a loss of the purchase price
of such Permitted Investments.  In the absence of written investment
instructions hereunder, funds on deposit in the Series 2010-2 Distribution
Account shall remain uninvested.

     

    (c) Earnings from Series 2010-2
Distribution Account.  All interest and earnings (net of losses
and investment expenses) paid on funds on deposit in the Series 2010-2
Distribution Account shall be deemed to be on deposit and available for
distribution.

     

    (d) Series 2010-2 Distribution
Account Constitutes Additional Collateral for Series 2010-2
Notes.  In order to secure and provide for the repayment and
payment of ABRCF’s Obligations with respect to the Series 2010-2 Notes, ABRCF
hereby grants a security interest in 

     

    
      
        
        

      

      
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    and
assigns, pledges, grants, transfers and sets over to the Trustee, for the
benefit of the Series 2010-2 Noteholders, all of ABRCF’s right, title and
interest in and to the following (whether now or hereafter existing or
acquired):  (i) the Series 2010-2 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 2010-2 Distribution Account or the funds on deposit
therein from time to time; (iv) all investments made at any time and from time
to time with monies in the Series 2010-2 Distribution Account, whether
constituting securities, instruments, general intangibles, investment property,
financial assets or other property; (v) all interest, dividends, cash,
instruments and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for the Series 2010-2
Distribution Account, the funds on deposit therein from time to time or the
investments made with such funds; and (vi) all proceeds of any and all of
the foregoing, including, without limitation, cash (the items in the foregoing
clauses (i) through (vi) are referred to, collectively, as the “Series 2010-2 Distribution
Account Collateral”).  The Trustee shall possess all right,
title and interest in all funds on deposit from time to time in the Series
2010-2 Distribution Account and in and to all proceeds thereof, and shall be the
only person authorized to originate entitlement orders in respect of the Series
2010-2 Distribution Account.  The Series 2010-2 Distribution Account
Collateral shall be under the sole dominion and control of the Trustee for the
benefit of the Series 2010-2 Noteholders.  The Series 2010-2 Agent
hereby agrees (i) to act as the securities intermediary (as defined in Section
8-102(a)(14) of the New York UCC) with respect to the Series 2010-2
Distribution Account; (ii) that its jurisdiction as securities intermediary
is New York, (iii) that each item of property (whether investment property,
financial asset, security, instrument or cash) credited to the Series 2010-2
Distribution Account shall be treated as a financial asset (as defined in
Section 8-102(a)(9) of the New York UCC) and (iv) to comply with any
entitlement order (as defined in Section 8-102(a)(8) of the New York
UCC) issued by the Trustee.

     

    Section
2.10. Series 2010-2 Accounts
Permitted Investments.  ABRCF
shall not, and shall not permit, funds on deposit in the Series 2010-2 Accounts
to be invested in:

     

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

     

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

     

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

     

    (iv) money
market funds or eurodollar time deposits which are not rated at least “P-1” by
Moody’s;

     

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

     

    (vi) any
investment, instrument or security not otherwise listed in clause
(i) through (vi) of the definition of “Permitted Investments” in the Base
Indenture.

     

    
      
        
        

      

      
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    Section
2.11. Series 2010-2 Demand Notes
Constitute Additional Collateral for Series 2010-2 Notes.  In
order to secure and provide for the repayment and payment of ABRCF’s Obligations
with respect to the Series 2010-2 Notes, ABRCF hereby grants a security interest
in and assigns, pledges, grants, transfers and sets over to the Trustee, for the
benefit of the Series 2010-2 Noteholders, all of ABRCF’s right, title and
interest in and to the following (whether now or hereafter existing or
acquired):  (i) the Series 2010-2 Demand Notes; (ii) all
certificates and instruments, if any, representing or evidencing the Series
2010-2 Demand Notes; and (iii) all proceeds of any and all of the
foregoing, including, without limitation, cash.  On the date hereof,
ABRCF shall deliver to the Trustee, for the benefit of the Series 2010-2
Noteholders, each Series 2010-2 Demand Note, endorsed in blank.  The
Trustee, for the benefit of the Series 2010-2 Noteholders, shall be the only
Person authorized to make a demand for payments on the Series 2010-2 Demand
Notes.

     

    Section
2.12. Subordination of the Class B
Notes.  Notwithstanding
anything to the contrary contained in this Supplement, the Indenture or in any
other Related Document, the Class B Notes will be subordinate in all respects to
the Class A Notes as and to the extent set forth in this Section
2.12(a).  No payments on account of principal shall be made with
respect to the Class B Notes on any Distribution Date prior to the Series 2010-2
Rapid Amortization Period unless an amount equal to the Class A Controlled
Distribution Amount for the Related Month shall have been paid to the Class A
Noteholders and no payments on account of principal shall be made with respect
to the Class B Notes during the Series 2010-2 Rapid Amortization Period or on
the Series 2010-2 Final Distribution Date until the Class A Notes have been paid
in full.  No payments on account of interest shall be made with
respect to the Class B Notes until all payments of interest then due and payable
with respect to the Class A Notes (including, without limitation, all accrued
interest, all Class A Shortfall and all interest accrued on such Class A
Shortfall) have been paid in full.

     

     

    ARTICLE
III

     

    AMORTIZATION
EVENTS

     

    In
addition to the Amortization Events set forth in Section 9.1 of the Base
Indenture, any of the following shall be an Amortization Event with respect to
the Series 2010-2 Notes and collectively shall constitute the Amortization
Events set forth in Section 9.1(n) of the Base Indenture with respect to the
Series 2010-2 Notes (without notice or other action on the part of the Trustee
or any holders of the Series 2010-2 Notes):

     

    (a) a Series
2010-2 Enhancement Deficiency shall occur and continue for at least two (2)
Business Days; provided, however, that such
event or condition shall not be an Amortization Event if during such two (2)
Business Day period such Series 2010-2 Enhancement Deficiency shall have been
cured in accordance with the terms and conditions of the Indenture and the
Related Documents;

     

    (b) the
Series 2010-2 Liquidity Amount shall be less than the Series 2010-2 Required
Liquidity Amount for at least two (2) Business Days; provided, however, that such
event or condition shall not be an Amortization Event if during such two

     

    
      
        
        

      

      
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    (2) Business
Day period such insufficiency shall have been cured in accordance with the terms
and conditions of the Indenture and the Related Documents;

     

    (c) the
Collection Account, the Series 2010-2 Collection Account, the Series 2010-2
Excess Collection Account or the Series 2010-2 Reserve Account shall be subject
to an injunction, estoppel or other stay or a Lien (other than Liens permitted
under the Related Documents);

     

    (d) all
principal of and interest on any Class of the Series 2010-2 Notes is not paid in
full on or before the Series 2010-2 Expected Final Distribution
Date;

     

    (e) any
Series 2010-2 Letter of Credit shall not be in full force and effect for at
least two (2) Business Days and (x) either a Series 2010-2 Enhancement
Deficiency would result from excluding such Series 2010-2 Letter of Credit from
the Series 2010-2 Enhancement Amount or (y) the Series 2010-2 Liquidity Amount,
excluding therefrom the available amount under such Series 2010-2 Letter of
Credit, would be less than the Series 2010-2 Required Liquidity
Amount;

     

    (f) from and
after the funding of the Series 2010-2 Cash Collateral Account, the Series
2010-2 Cash Collateral Account shall be subject to an injunction, estoppel or
other stay or a Lien (other than Liens permitted under the Related Documents)
for at least two (2) Business Days and either (x) a Series 2010-2 Enhancement
Deficiency would result from excluding the Series 2010-2 Available Cash
Collateral Account Amount from the Series 2010-2 Enhancement Amount or (y) the
Series 2010-2 Liquidity Amount, excluding therefrom the Series 2010-2 Available
Cash Collateral Amount, would be less than the Series 2010-2 Required Liquidity
Amount; and

     

    (g) an Event
of Bankruptcy shall have occurred with respect to any Series 2010-2 Letter of
Credit Provider or any Series 2010-2 Letter of Credit Provider repudiates its
Series 2010-2 Letter of Credit or refuses to honor a proper draw thereon and
either (x) a Series 2010-2 Enhancement Deficiency would result from excluding
such Series 2010-2 Letter of Credit from the Series 2010-2 Enhancement Amount or
(y) the Series 2010-2 Liquidity Amount, excluding therefrom the available amount
under such Series 2010-2 Letter of Credit, would be less than the Series 2010-2
Required Liquidity Amount.

     

     

    ARTICLE
IV

     

    FORM
OF SERIES 2010-2 NOTES

     

    Section
4.1. Restricted Global Series
2010-2 Notes.  Each
Class of the Series 2010-2 Notes to be issued in the United States will be
issued in book-entry form and represented by one or more permanent global Notes
in fully registered form without interest coupons (each, a “Restricted Global Class A
Note”, or a “Restricted Global Class B
Note”, as the case may be), substantially in the form set forth in Exhibits A-1 and
B-1, with such
legends as may be applicable thereto as set forth in the Base Indenture, and
will be sold only in the United States (1) initially to institutional accredited
investors within the meaning of Regulation D under the 

     

    
      
        
        

      

      
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    Securities
Act in reliance on an exemption from the registration requirements of the
Securities Act and (2) thereafter to qualified institutional buyers within
the meaning of, and in reliance on, Rule 144A under the Securities Act and shall
be deposited on behalf of the purchasers of such Class of the Series 2010-2
Notes represented thereby, with the Trustee as custodian for DTC, and registered
in the name of Cede as DTC’s nominee, duly executed by ABRCF and authenticated
by the Trustee in the manner set forth in Section 2.4 of the Base
Indenture.

     

    Section
4.2. Temporary Global Series
2010-2 Notes; Permanent Global Series 2010-2 Notes.  Each
Class of the Series 2010-2 Notes to be issued outside the United States will be
issued and sold in transactions outside the United States in reliance on
Regulation S under the Securities Act, as provided in the applicable note
purchase agreement, and shall initially be issued in the form of one or more
temporary notes in registered form without interest coupons (each, a “Temporary Global Class A
Note”, or a “Temporary Global Class B
Note”, as the case may be, and collectively the “Temporary Global Series
2010-2 Notes”), substantially in the form set forth in Exhibits A-2, and
B-2, which
shall be deposited on behalf of the purchasers of such Class of the Series
2010-2 Notes represented thereby with a custodian for, and registered in the
name of a nominee of DTC, for the account of Euroclear Bank S.A./N.V., as
operator of the Euroclear System (“Euroclear”) or for
Clearstream Banking, société anonyme (“Clearstream”), duly
executed by ABRCF and authenticated by the Trustee in the manner set forth in
Section 2.4 of the Base Indenture.  Interests in each Temporary Global
Series 2010-2 Note will be exchangeable, in whole or in part, for interests in
one or more permanent global notes in registered form without interest coupons
(each, a “Permanent
Global Class A Note” or a “Permanent Global Class B
Note”, as the case may be, and collectively the “Permanent Global Series
2010-2 Notes”), substantially in the form of Exhibits A-3, and
B-3, in
accordance with the provisions of such Temporary Global Series 2010-2 Note and
the Base Indenture (as modified by this Supplement).  Interests in a
Permanent Global Series 2010-2 Note will be exchangeable for a definitive Series
2010-2 Note in accordance with the provisions of such Permanent Global Series
2010-2 Note and the Base Indenture (as modified by this
Supplement).

     

     

    ARTICLE
V

     

    GENERAL

     

    Section
5.1. Optional
Repurchase.  The
Series 2010-2 Notes shall be subject to repurchase by ABRCF at its option in
accordance with Section 6.3 of the Base Indenture on any Distribution Date after
the Series 2010-2 Invested Amount is reduced to an amount less than or equal to
10% of the sum of the Class A Initial Invested Amount and the Class B Initial
Invested Amount (the “Series 2010-2 Repurchase
Amount”).  The repurchase price for any Series 2010-2 Note
shall equal the aggregate outstanding principal balance of such Series 2010-2
Note (determined after giving effect to any payments of principal and interest
on such Distribution Date), plus accrued and
unpaid interest on such outstanding principal balance.

     

    
      
        
        

      

      
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    Section
5.2. Information.  The
Trustee shall provide to the Series 2010-2 Noteholders, or their designated
agent, copies of all information furnished to the Trustee or ABRCF pursuant to
the Related Documents, as such information relates to the Series 2010-2 Notes or
the Series 2010-2 Collateral.

     

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

    
 

    
      
        	 
      	
                Exhibit
      A-1:

              	
                Form
      of Restricted Global Class A Note

              
	 
      	
                Exhibit
      A-2:

              	
                Form
      of Temporary Global Class A Note

              
	 
      	
                Exhibit
      A-3:

              	
                Form
      of Permanent Global Class A Note

              
	 
      	
                Exhibit
      B-1:

              	
                Form
      of Restricted Global Class B Note

              
	 
      	
                Exhibit
      B-2:

              	
                Form
      of Temporary Global Class B Note

              
	 
      	
                Exhibit
      B-3:

              	
                Form
      of Permanent Global Class B Note

              
	 
      	
                Exhibit
      C:

              	
                Form
      of Series 2010-2 Demand Note

              
	 
      	
                Exhibit
      D:

              	
                Form
      of Letter of Credit

              
	 
      	
                Exhibit
      E:

              	
                Form
      of Lease Payment Deficit Notice

              
	 
      	
                Exhibit
      F:

              	
                Form
      of Demand Notice

              
	 
      	
                Exhibit
      G:

              	
                Form
      of Supplemental Indenture No. 3 to the Base Indenture

              
	 
      	
                Exhibit
      H:

              	
                Form
      of Amendment to the Master Exchange
Agreement

              

      

     

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

     

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

     

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

     

    Section
5.7. Amendments.  This
Supplement may be modified or amended from time to time in accordance with the
terms of the Base Indenture; provided, however, that if,
pursuant to the terms of the Base Indenture or this Supplement, the consent of
the Required Noteholders is required for an amendment or modification of this
Supplement or any other Related Document, such requirement shall be satisfied if
such amendment or modification is consented to by the Requisite Series 2010-2
Noteholders; provided further, that, so
long as (i) no Amortization Event has occurred and is continuing and (ii) the
Rating Agency Consent Condition is met with respect to the outstanding Series
2010-2 Notes, ABRCF shall be able to (x) increase the Series 2010-2 Maximum
Hyundai Amount up to an amount not to exceed 30% of the aggregate Net Book Value
of all Vehicles leased under the Leases and (y) increase the Series 2010-2
Maximum Kia Amount up to an amount not to exceed 15% of the aggregate Net

     

    
      
        
        

      

      
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    Book
Value of all Vehicles leased under the Leases at any time without the consent of
the Series 2010-2 Noteholders by giving written notice of such increase to the
Trustee along with an Officer’s Certificate certifying that no Amortization
Event has occurred and is continuing.

    

    Section
5.8. Discharge of
Indenture.  Notwithstanding
anything to the contrary contained in the Base Indenture, no discharge of the
Indenture pursuant to Section 11.1(b) of the Base Indenture will be effective as
to the Series 2010-2 Notes without the consent of the Requisite Series 2010-2
Noteholders.

     

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

     

    Section
5.10. Capitalization of
ABRCF.  ABRCF
agrees that on the Series 2010-2 Closing Date it will have capitalization in an
amount equal to or greater than 3% of the sum of (x) the Series 2010-2 Invested
Amount and (y) the invested amount of the Series 2003-4 Notes, the Series 2004-1
Notes, the Series 2005-1 Notes, the Series 2005-2 Notes, the Series 2005-4
Notes, the Series 2006-1 Notes, the Series 2007-2 Notes, the Series 2008-1
Notes, the Series 2009-1 Notes, the Series 2009-2 Notes, the Series 2009-3
Notes, the Series 2010-1 Notes and the Series 2010-3 Notes.

     

    Section
5.11. Required
Noteholders.Subject
to Section 5.7 above, any action pursuant to Section 5.6, Section 8.13 or
Article 9 of the Base Indenture that requires the consent of, or is permissible
at the direction of, the Required Noteholders with respect to the Series 2010-2
Notes pursuant to the Base Indenture shall only be allowed with the consent of,
or at the direction of, the Required Controlling Class Series 2010-2
Noteholders.  Any other action pursuant to any Related Document which
requires the consent or approval of, or the waiver by, the Required Noteholders
with respect to the Series 2010-2 Notes shall require the consent or approval
of, or waiver by, the Requisite Series 2010-2 Noteholders.

     

    Section
5.12. Series 2010-2 Demand
Notes.  Other
than pursuant to a demand thereon pursuant to Section 2.5, ABRCF shall not
reduce the amount of the Series 2010-2 Demand Notes or forgive amounts payable
thereunder so that the outstanding principal amount of the Series 2010-2 Demand
Notes after such reduction or forgiveness is less than the Series 2010-2 Letter
of Credit Liquidity Amount.  ABRCF shall not agree to any amendment of
the Series 2010-2 Demand Notes without first satisfying the Rating Agency
Confirmation Condition and the Rating Agency Consent Condition.

     

    Section
5.13. Termination of
Supplement.  This
Supplement shall cease to be of further effect when all outstanding Series
2010-2 Notes theretofore authenticated and issued have been delivered (other
than destroyed, lost, or stolen Series 2010-2 Notes which have been replaced or
paid) to the Trustee for cancellation, ABRCF has paid all sums payable
hereunder, and, if the Series 2010-2 Demand Note Payment Amount on the Series
2010-2 Letter of Credit Termination Date was greater than zero, all amounts have
been withdrawn from the Series 2010-2 Cash Collateral Account in accordance with
Section 2.8(i).

     

    
      
        
        

      

      
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    Section
5.14. Noteholder Consent to
Certain Amendments.  Each
Series 2010-2 Noteholder, upon any acquisition of a Series 2010-2 Note, will be
deemed to agree and consent to (i) the execution by ABRCF of a Supplemental
Indenture to the Base Indenture substantially in the form of Exhibit G hereto and
(ii) the execution of an amendment to the Master Exchange Agreement
substantially in the form of Exhibit H
hereto.  Such deemed consent will apply to each proposed amendment set
forth in Exhibits
G and H
individually, and the failure to adopt any of the amendments set forth therein
will not revoke the consent with respect to any other amendment.

     

    Section
5.15. Confidential
Information. (a)  The
Trustee and each Series 2010-2 Note Owner agrees, by its acceptance and holding
of a beneficial interest in a Series 2010-2 Note, to maintain the
confidentiality of all Confidential Information in accordance with procedures
adopted by the Trustee or such Series 2010-2 Note Owner 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 5.15; (ii) such Person’s financial advisors and other
professional advisors who agree to hold confidential the Confidential
Information substantially in accordance with the terms of this Section 5.15;
(iii) any other Series 2010-2 Note Owner; (iv) any Person of the type that would
be, to such Person’s knowledge, permitted to acquire an interest in the Series
2010-2 Notes in accordance with the requirements of the Indenture to which such
Person sells or offers to sell any such Series 2010-2 Note or any part thereof
and that agrees to hold confidential the Confidential Information substantially
in accordance with this Section 5.15 (or in accordance with such other
confidentiality procedures as are acceptable to ABRCF); (v) any federal or state
or other regulatory, governmental or judicial authority having jurisdiction over
such Person; (vi) the National Association of Insurance Commissioners or
any similar organization, or any nationally recognized rating agency that
requires access to information about the investment portfolio of such Person,
(vii) any reinsurers or liquidity or credit providers that agree to hold
confidential the Confidential Information substantially in accordance with this
Section 5.15 (or in accordance with such other confidentiality procedures as are
acceptable to ABRCF); (viii) any other Person with the consent of ABRCF; or (ix)
any other Person to which such delivery or disclosure may be necessary or
appropriate (A) to effect compliance with any law, rule, regulation, statute or
order applicable to such Person, (B) in response to any subpoena or other legal
process upon prior notice to ABRCF (unless prohibited by applicable law, rule,
order or decree or other requirement having the force of law), (C) in connection
with any litigation to which such Person is a party upon prior notice to ABRCF
(unless prohibited by applicable law, rule, order or decree or other requirement
having the force of law) or (D) if an Amortization Event with respect to
the Series 2010-2 Notes has occurred and is continuing, to the extent such
Person may reasonably determine such delivery and disclosure to be necessary or
appropriate in the enforcement or for the protection of the rights and remedies
under the Series 2010-2 Notes, the Indenture or any other Related Document; and
provided, further, however, that delivery to any Series 2010-2 Note Owner of any
report or information required by the terms of the Indenture to be provided to
such Series 2010-2 Note Owner shall not be a violation of this Section
5.15.  Each Series 2010-2 Note Owner agrees, by acceptance of a
beneficial interest in a Series 2010-2 Note, except as set forth in clauses (v),
(vi) and (ix) above, that it shall use the Confidential Information for the sole
purpose of making an investment in the Series 2010-2 

     

    
      
        
        

      

      
        -47-

        
          

        

      

      
        
        

      

    

    Notes or
administering its investment in the Series 2010-2 Notes.  In the event
of any required disclosure of the Confidential Information by such Series 2010-2
Note Owner, such Series 2010-2 Note Owner agrees to use reasonable efforts to
protect the confidentiality of the Confidential Information.

     

    (b) For the
purposes of this Section 5.15, “Confidential
Information” means information delivered to the Trustee or any Series
2010-2 Note Owner by or on behalf of ABRCF in connection with and relating to
the transactions contemplated by or otherwise pursuant to the Indenture and the
Related Documents; provided, that such
term does not include information that:  (i) was publicly known or
otherwise known to the Trustee or such Series 2010-2 Note Owner prior to the
time of such disclosure; (ii) subsequently becomes publicly known through no act
or omission by the Trustee, any Series 2010-2 Note Owner or any person acting on
behalf of the Trustee or any Series 2010-2 Note Owner; (iii) otherwise is known
or becomes known to the Trustee or any Series 2010-2 Note Owner other than (x)
through disclosure by ABRCF or (y) as a result of the breach of a fiduciary duty
to ABRCF or a contractual duty to ABRCF; or (iv) is allowed to be treated as
non-confidential by consent of ABRCF.

     

    Section
5.16. Capitalized Cost
Covenant.  ABRCF
hereby agrees that it shall not permit the aggregate Capitalized Cost for all
Vehicles purchased in any model year that are not subject to a Manufacturer
Program to exceed 85% of the aggregate MSRP (Manufacturer Suggested Retail
Price) of all such Vehicles; provided, however, that ABCRF
shall not modify the customary buying patterns or purchasing criteria used
by the Administrator and its Affiliates with respect to the Vehicles if the
primary purpose of such modification is to comply with this
covenant.

     

    Section
5.17. Further Limitation of
Liability. Notwithstanding
anything in this Supplement to the contrary, in no event shall the Trustee or
its directors, officers, agents or employees be liable under this Supplement for
special, indirect, punitive or consequential loss or damage of any kind
whatsoever (including, but not limited to, lost profits), even if the Trustee or
its directors, officers, agents or employees have been advised of the likelihood
of such loss or damage and regardless of the form of action.

    

    Section
5.18. Force Majeure.
In no
event shall the Trustee be liable for any failure or delay in the performance of
its obligations under this Supplement because of circumstances beyond the
Trustee’s control, including, but not limited to, a failure, termination,
suspension of a clearing house, securities depositary, settlement system or
central payment system in any applicable part of the world or acts of God,
flood, war (whether declared or undeclared), civil or military disturbances or
hostilities, nuclear or natural catastrophes, political unrest, explosion,
severe weather or accident, earthquake, terrorism, fire, riot, labor
disturbances, strikes or work stoppages for any reason, embargo, government
action, including any laws, ordinances, regulations or the like (whether
domestic, federal, state, county or municipal or foreign) which delay, restrict
or prohibit the providing of the services contemplated by this Supplement, or
the unavailability of communications or computer facilities, the failure of
equipment or interruption of communications or computer facilities, or the
unavailability of the Federal Reserve Bank wire or telex or other wire or
communication facility, or any other causes beyond the Trustee’s control whether
or not of the same class or kind as specified above.

     

    
      
        
        

      

      
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    Section
5.19. Waiver of Jury Trial,
etc. EACH OF
THE PARTIES HERETO HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES (TO
THE EXTENT PERMITTED BY APPLICABLE LAW) ANY RIGHTS IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN
CONNECTION WITH, THIS SUPPLEMENT, THE SERIES 2010-2 NOTES, THE SERIES 2010-2
DEMAND NOTES, THE SERIES 2010-2 LETTER OF CREDIT AND ANY OTHER RELATED DOCUMENTS
EXECUTED IN CONNECTION WITH THE ISSUANCE OF THE SERIES 2010-2 NOTES, OR ANY
COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN), OR
ACTIONS OF THE PARTIES HERETO.  THIS PROVISION IS A MATERIAL
INDUCEMENT FOR THE PARTIES HERETO TO ENTER INTO THIS SUPPLEMENT.

     

    Section
5.20. Submission to
Jurisdiction.EACH OF
THE PARTIES HERETO HEREBY IRREVOCABLY SUBMITS (TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW) TO THE NON-EXCLUSIVE JURISDICTION OF ANY NEW YORK STATE OR
FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN, NEW YORK CITY, STATE OF NEW
YORK, OVER ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
SUPPLEMENT, THE SERIES 2010-2 NOTES, THE SERIES 2010-2 DEMAND NOTES, THE SERIES
2010-2 LETTER OF CREDIT AND ANY OTHER RELATED DOCUMENTS EXECUTED IN CONNECTION
WITH THE ISSUANCE OF THE SERIES 2010-2 NOTES AND EACH OF THE PARTIES HERETO
HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR
PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE OR FEDERAL
COURT.  EACH OF THE PARTIES HERETO EACH HEREBY IRREVOCABLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION EACH MAY NOW OR HEREAFTER
HAVE, TO THE LAYING OF VENUE IN ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT
AS WELL AS ANY RIGHT EACH MAY NOW OR HEREAFTER HAVE, TO REMOVE ANY SUCH ACTION
OR PROCEEDING, ONCE COMMENCED, TO ANOTHER COURT ON THE GROUNDS OF FORUM NON CONVENIENS OR
OTHERWISE.  NOTHING CONTAINED HEREIN SHALL PRECLUDE ANY PARTY HERETO
FROM BRINGING AN ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
SUPPLEMENT, THE SERIES 2010-2 NOTES, THE SERIES 2010-2 DEMAND NOTES, THE SERIES
2010-2 LETTER OF CREDIT AND ANY OTHER RELATED DOCUMENTS EXECUTED IN CONNECTION
WITH THE ISSUANCE OF THE SERIES 2010-2 NOTES IN ANY OTHER COUNTRY, STATE OR
PLACE HAVING JURISDICTION OVER SUCH ACTION OR PROCEEDING.

     

    
      
         

      

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

     

    

     

    
      	 
      	 
      	
              AVIS
      BUDGET RENTAL CAR FUNDING (AESOP) LLC

               

               

            	 
      
	 
      	
              By:

            	
              /s/
      David Calabria

            	 
      
	 
      	 
      	
              Name: 
      David Calabria

              Title: 
      Vice President, Assistant Secretary & Assistant
    Treasurer

            	 
      

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

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

              as
      Trustee

               

               

            	 
      
	 
      	
              By:

            	
              /s/
      Sally R. Tokich

            	 
      
	 
      	 
      	
              Title: 
      Senior Associate

            	 
      
	 
      	 
      	
               

               

               

               

               

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

               as
      Series 2010-2 Agent

               

               

            	 
      
	 
      	
              By:

            	
              /s/
      Sally R. Tokich

            	 
      
	 
      	 
      	
              Title: 
      Senior Associate

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