Document:

SECOND AMENDED AND RESTATED LEASE AGREEMENT

 

Exhibit 10.9

 

SECOND AMENDED AND RESTATED MASTER MOTOR VEHICLE OPERATING

LEASE AGREEMENT

dated as of June 3, 2004

 

between

 

AESOP LEASING L.P.,

as Lessor,

 

and

 

CENDANT CAR RENTAL GROUP, INC.,

as Lessee and as Administrator

 

As set forth in Section 27 hereof, Lessor has assigned to CRCF (as defined
herein) and CRCF has assigned to the Trustee (as defined herein) certain of its
right, title and interest in and to this lease. To the extent, if any, that
this lease constitutes chattel paper (as such term is defined in the uniform
commercial code as in effect in any applicable jurisdiction) no security
interest in this lease may be created through the transfer or possession of any
counterpart other than the original executed counterpart, which shall be
identified as the counterpart containing the receipt therefor executed by the
trustee on the signature page thereof.

[THIS IS NOT COUNTERPART NO. 1]

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Page

	1.	 	DEFINITIONS	 	 	1	 
	 
	 	 	 	 	 	 	 	 	 	 
	2.	 	GENERAL AGREEMENT	 	 	2	 
	

	 	 	2.1.	 	 	Lease and Acquisition of Vehicles
	 	 	5	 
	

	 	 	2.2.	 	 	Right of Lessee to Act as Lessor’s Agent
	 	 	5	 
	

	 	 	2.3.	 	 	Payment of Capitalized Cost by Lessor
	 	 	5	 
	

	 	 	2.4.	 	 	Non-Liability of Lessor
	 	 	6	 
	

	 	 	2.5.	 	 	Lessee’s Right to Purchase Vehicles
	 	 	6	 
	

	 	 	2.6.	 	 	Lessor’s Right to Cause Vehicles to be Sold
	 	 	7	 
	

	 	 	2.7.	 	 	Redesignation of Vehicles
	 	 	8	 
	

	 	 	2.8.	 	 	Limitations on the Acquisition or Redesignation of Certain Vehicles
	 	 	9	 
	

	 	 	2.9.	 	 	Compliance with Master Exchange Agreement
	 	 	9	 
	 
	 	 	 	 	 	 	 	 	 	 
	3.	 	TERM	 	 	9	 
	

	 	 	3.1.	 	 	Vehicle Term
	 	 	9	 
	

	 	 	3.2.	 	 	Term
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 
	4.	 	RENT AND CHARGES	 	 	11	 
	

	 	 	4.1.	 	 	Payment of Rent
	 	 	11	 
	

	 	 	4.2.	 	 	Special Service Charges
	 	 	11	 
	

	 	 	4.3.	 	 	Net Lease
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 
	5.	 	INSURANCE	 	 	12	 
	

	 	 	5.1.	 	 	Personal Injury and Damage
	 	 	12	 
	

	 	 	5.2.	 	 	Delivery of Certificate of Insurance
	 	 	12	 
	

	 	 	5.3.	 	 	Changes in Insurance Coverage
	 	 	12	 
	 
	 	 	 	 	 	 	 	 	 	 
	6.	 	RISK OF LOSS; CASUALTY AND INELIGIBLE VEHICLE OBLIGATIONS	 	 	13	 
	

	 	 	6.1.	 	 	Risk of Loss Borne by Lessee
	 	 	13	 
	

	 	 	6.2.	 	 	Casualty; Ineligible Vehicles
	 	 	13	 
	 
	 	 	 	 	 	 	 	 	 	 
	7.	 	VEHICLE USE	 	 	13	 
	 
	 	 	 	 	 	 	 	 	 	 
	8.	 	LIENS	 	 	14	 
	 
	 	 	 	 	 	 	 	 	 	 
	9.	 	NON-DISTURBANCE	 	 	15	 
	 
	 	 	 	 	 	 	 	 	 	 
	10.	 	REGISTRATION; LICENSE; TRAFFIC SUMMONSES; PENALTIES AND FINES	 	 	15	 
	 
	 	 	 	 	 	 	 	 	 	 
	11.	 	MAINTENANCE AND REPAIRS	 	 	15	 
	 
	 	 	 	 	 	 	 	 	 	 
	12.	 	VEHICLE WARRANTIES.	 	 	16	 

(i)

 

	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	12.1.	 	 	No Lessor Warranties
	 	 	16	 
	

	 	 	12.2.	 	 	Manufacturer’s Warranties
	 	 	16	 
	 
	 	 	 	 	 	 	 	 	 	 
	13.	 	VEHICLE USAGE GUIDELINES AND RETURN; SPECIAL DEFAULT PAYMENTS; EARLY TERMINATION PAYMENTS	 	 	16	 
	

	 	 	13.1.	 	 	Usage
	 	 	16	 
	

	 	 	13.2.	 	 	Return
	 	 	17	 
	

	 	 	13.3.	 	 	Special Default Payments
	 	 	17	 
	

	 	 	13.4.	 	 	Early Termination Payments
	 	 	18	 
	 
	 	 	 	 	 	 	 	 	 	 
	14.	 	DISPOSITION PROCEDURE	 	 	18	 
	 
	 	 	 	 	 	 	 	 	 	 
	15.	 	ODOMETER DISCLOSURE REQUIREMENT	 	 	19	 
	 
	 	 	 	 	 	 	 	 	 	 
	16.	 	GENERAL INDEMNITY	 	 	19	 
	

	 	 	16.1.	 	 	Indemnity by the Lessee
	 	 	19	 
	

	 	 	16.2.	 	 	Reimbursement Obligation by the Lessee
	 	 	21	 
	

	 	 	16.3.	 	 	Defense of Claims
	 	 	21	 
	 
	 	 	 	 	 	 	 	 	 	 
	17.	 	ASSIGNMENT	 	 	22	 
	

	 	 	17.1.	 	 	Right of the Lessor to Assign this Agreement
	 	 	22	 
	

	 	 	17.2.	 	 	Limitations on the Right of the Lessee to Assign this Agreement
	 	 	22	 
	 
	 	 	 	 	 	 	 	 	 	 
	18.	 	DEFAULT AND REMEDIES THEREFOR	 	 	23	 
	

	 	 	18.1.	 	 	Events of Default
	 	 	23	 
	

	 	 	18.2.	 	 	Effect of AESOP I Operating Lease Event of Default or
Liquidation Event of Default
	 	 	24	 
	

	 	 	18.3.	 	 	Rights of Lessor Upon AESOP I Operating Lease Event of
Default, Limited Liquidation Event of Default or Liquidation Event
of Default
	 	 	24	 
	

	 	 	18.4.	 	 	Rights of Lender and Trustee Upon Liquidation Event of
Default, Limited Liquidation Event of Default and Non-Performance of
Certain Covenants
	 	 	25	 
	

	 	 	18.5.	 	 	Measure of Damages
	 	 	27	 
	

	 	 	18.6.	 	 	Vehicle Return Default
	 	 	27	 
	

	 	 	18.7.	 	 	Application of Proceeds
	 	 	29	 
	 
	 	 	 	 	 	 	 	 	 	 
	19.	 	MANUFACTURER EVENTS OF DEFAULT	 	 	29	 
	 
	 	 	 	 	 	 	 	 	 	 
	20.	 	[RESERVED]	 	 	29	 
	 
	 	 	 	 	 	 	 	 	 	 
	21.	 	[RESERVED]	 	 	29	 
	 
	 	 	 	 	 	 	 	 	 	 
	22.	 	CERTIFICATION OF TRADE OR BUSINESS USE	 	 	29	 
	 
	 	 	 	 	 	 	 	 	 	 
	23.	 	SURVIVAL	 	 	30	 
	 
	 	 	 	 	 	 	 	 	 	 
	24.	 	[RESERVED]	 	 	30	 
	 
	 	 	 	 	 	 	 	 	 	 
	25.	 	TITLE	 	 	30	 

(ii)

 

	 	 	 	 	 	 	 	 	 	 	 
	26.	 	[RESERVED]	 	 	30	 
	 
	 	 	 	 	 	 	 	 	 	 
	27.

	 	RIGHTS OF LESSOR ASSIGNED
	 	 	30	 
	 
	 	 	 	 	 	 	 	 	 	 
	28.	 	[RESERVED]	 	 	31	 
	 
	 	 	 	 	 	 	 	 	 	 
	29.	 	MODIFICATION AND SEVERABILITY	 	 	31	 
	 
	 	 	 	 	 	 	 	 	 	 
	30.	 	CERTAIN REPRESENTATIONS AND WARRANTIES	 	 	31	 
	

	 	 	30.1.	 	 	Organization; Ownership; Power; Qualification
	 	 	32	 
	

	 	 	30.2.	 	 	Authorization; Enforceability
	 	 	32	 
	

	 	 	30.3.	 	 	Compliance
	 	 	32	 
	

	 	 	30.4.	 	 	Financial Information; Financial Condition
	 	 	32	 
	

	 	 	30.5.	 	 	Litigation
	 	 	33	 
	

	 	 	30.6.	 	 	Liens
	 	 	33	 
	

	 	 	30.7.	 	 	Employee Benefit Plans
	 	 	33	 
	

	 	 	30.8.	 	 	Investment Company Act
	 	 	33	 
	

	 	 	30.9.	 	 	Regulations T, U and X
	 	 	34	 
	

	 	 	30.10.	 	 	Records Locations; Jurisdiction of Organization
	 	 	34	 
	

	 	 	30.11.	 	 	Taxes
	 	 	34	 
	

	 	 	30.12.	 	 	Governmental Authorization
	 	 	34	 
	

	 	 	30.13.	 	 	Compliance with Laws
	 	 	34	 
	

	 	 	30.14.	 	 	Eligible Vehicles
	 	 	35	 
	

	 	 	30.15.	 	 	Supplemental Documents True and Correct
	 	 	35	 
	

	 	 	30.16.	 	 	Manufacturer Programs
	 	 	35	 
	

	 	 	30.17.	 	 	Absence of Default
	 	 	35	 
	

	 	 	30.18.	 	 	Title to Assets
	 	 	35	 
	

	 	 	30.19.	 	 	Burdensome Provisions
	 	 	35	 
	

	 	 	30.20.	 	 	No Adverse Change
	 	 	36	 
	

	 	 	30.21.	 	 	No Adverse Fact
	 	 	36	 
	

	 	 	30.22.	 	 	Accuracy of Information
	 	 	36	 
	

	 	 	30.23.	 	 	Solvency
	 	 	36	 
	

	 	 	30.24.	 	 	Payment Of Capitalized Cost
	 	 	36	 
	 
	 	 	 	 	 	 	 	 	 	 
	31.	 	CERTAIN AFFIRMATIVE COVENANTS	 	 	37	 
	

	 	 	31.1.	 	 	Corporate Existence; Foreign Qualification
	 	 	37	 
	

	 	 	31.2.	 	 	Books, Records and Inspections
	 	 	37	 
	

	 	 	31.3.	 	 	Insurance
	 	 	37	 
	

	 	 	31.4.	 	 	Manufacturer Programs
	 	 	38	 
	

	 	 	31.5.	 	 	Reporting Requirements
	 	 	38	 
	

	 	 	31.6.	 	 	Payment of Taxes; Removal of Liens
	 	 	39	 
	

	 	 	31.7.	 	 	Business
	 	 	39	 
	

	 	 	31.8.	 	 	Maintenance of Separate Existence
	 	 	40	 
	

	 	 	31.9.	 	 	Trustee as Lienholder
	 	 	40	 
	

	 	 	31.10.	 	 	Maintenance of the Vehicles
	 	 	40	 
	

	 	 	31.11.	 	 	Enhancement
	 	 	40	 
	

	 	 	31.12.	 	 	Manufacturer Payments
	 	 	40	 

(iii)

 

	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	31.13.	 	 	Accounting Methods; Financial Records
	 	 	41	 
	

	 	 	31.14.	 	 	Disclosure to Auditors
	 	 	41	 
	

	 	 	31.15.	 	 	Disposal of Non-Program Vehicles
	 	 	41	 
	

	 	 	31.16.	 	 	Perfection of Lessor’s Security Interest
	 	 	41	 
	 
	 	 	 	 	 	 	 	 	 	 
	32.	 	CERTAIN NEGATIVE COVENANTS	 	 	41	 
	

	 	 	32.1.	 	 	Mergers, Consolidations
	 	 	41	 
	

	 	 	32.2.	 	 	Other Agreements
	 	 	41	 
	

	 	 	32.3.	 	 	Liens
	 	 	42	 
	

	 	 	32.4.	 	 	Use of Vehicles
	 	 	42	 
	

	 	 	32.5.	 	 	Termination of Agreement
	 	 	42	 
	

	 	 	32.6.	 	 	Sublease Amendment
	 	 	42	 
	 
	 	 	 	 	 	 	 	 	 	 
	33.	 	ADMINISTRATOR ACTING AS AGENT OF THE LESSOR	 	 	42	 
	 
	 	 	 	 	 	 	 	 	 	 
	34.	 	NO PETITION	 	 	42	 
	 
	 	 	 	 	 	 	 	 	 	 
	35.	 	CERTAIN AGREEMENTS RESPECTING THE MASTER EXCHANGE AGREEMENT	 	 	43	 
	 
	 	 	 	 	 	 	 	 	 	 
	36.	 	SUBMISSION TO JURISDICTION	 	 	43	 
	 
	 	 	 	 	 	 	 	 	 	 
	37.	 	GOVERNING LAW	 	 	43	 
	 
	 	 	 	 	 	 	 	 	 	 
	38.	 	JURY TRIAL	 	 	44	 
	 
	 	 	 	 	 	 	 	 	 	 
	39.	 	NOTICES	 	 	44	 
	 
	 	 	 	 	 	 	 	 	 	 
	40.	 	[RESERVED]	 	 	45	 
	 
	 	 	 	 	 	 	 	 	 	 
	41.	 	TITLE TO MANUFACTURER PROGRAMS IN LESSOR	 	 	45	 
	 
	 	 	 	 	 	 	 	 	 	 
	42.	 	HEADINGS	 	 	45	 
	 
	 	 	 	 	 	 	 	 	 	 
	43.	 	EXECUTION IN COUNTERPARTS	 	 	45	 
	 
	 	 	 	 	 	 	 	 	 	 
	44.	 	EFFECTIVE DATE	 	 	46	 
	 
	 	 	 	 	 	 	 	 	 	 
	45.	 	NO RECOURSE	 	 	46	 

	 	 	 
	SCHEDULES AND ATTACHMENTS
	Schedule 30.5

	 	Litigation
	Schedule 30.10

	 	Jurisdiction of Organization; Records and Business Locations
	Schedule 30.13

	 	Compliance with Law
	 
	 	 
	ATTACHMENT A

	 	Vehicle Acquisition Schedule and Related Information
	 
	 	 
	ATTACHMENT B

	 	Form of Power of Attorney

(iv)

 

	 	 	 
	ATTACHMENT C

	 	Form of Sublease

(v)

 

SECOND AMENDED AND RESTATED MASTER MOTOR VEHICLE

OPERATING LEASE AGREEMENT

This Second Amended and Restated Master Motor Vehicle Operating Lease
Agreement (this “Agreement”), dated as of June 3, 2004, is made by and
between AESOP LEASING L.P., a Delaware limited partnership, as lessor (the
“Lessor”), and CENDANT CAR RENTAL GROUP, INC., a Delaware corporation
(“CCRG”), as lessee (in such capacity, the “Lessee”) and as
administrator (in such capacity, the “Administrator”).

W I T N E S S E T H :

WHEREAS, immediately prior to this Agreement becoming effective, the
Lessor, Avis Rent A Car System, Inc. (“ARAC”), as lessee and as
administrator, and Avis Group Holdings Inc. (“AGH”), as guarantor, are
parties to an Amended and Restated Master Motor Vehicle Operating Lease
Agreement, dated as of September 15, 1998 (the “Prior AESOP I Operating
Lease”), pursuant to which the Lessor leases Program Vehicles and
Non-Program Vehicles of one or more Manufacturers to ARAC, and AGH guarantees
certain obligations of the lessees thereunder;

WHEREAS, immediately prior to this Agreement becoming effective, ARAC and
AGH each assigned all of its respective rights, interests and obligations under
the Prior AESOP I Operating Lease to CCRG, pursuant to an Assignment and
Assumption Agreement, dated as of the date hereof, among ARAC, AGH and CCRG;

WHEREAS, the parties hereto now wish to amend and restate the Prior AESOP
I Operating Lease in order to eliminate the guarantee by AGH of the obligations
of the lessees thereunder and to amend certain other provisions; and

WHEREAS, the Lessor desires to lease to the Lessee and the Lessee desires
to lease from the Lessor both Program Vehicles and Non-Program Vehicles
financed by the Lessor with the proceeds of Loans and other available funds for
use in the daily rental car business of the Lessee or a Permitted Sublessee;

NOW, THEREFORE, in consideration of the foregoing premises, and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree that the Prior AESOP I Operating Lease
is hereby amended and restated as follows:

1.     DEFINITIONS. Unless otherwise specified herein, capitalized
terms used herein shall have the meanings ascribed to such terms in the
Definitions List attached as Schedule I to the Second Amended and Restated Base
Indenture, dated as of June 3, 2004 (the “Base Indenture”), between
Cendant Rental Car Funding (AESOP) LLC (“CRCF”), as Issuer, and The Bank
of New
York, as Trustee, as such Definitions List may from time to time be
amended in accordance with the terms of the Base Indenture.

 

 

2.     GENERAL AGREEMENT. (a) The Lessee and the Lessor intend that
this Agreement is a lease and that the relationship between the Lessor and the
Lessee pursuant hereto shall always be only that of lessor and lessee, and the
Lessee hereby declares, acknowledges and agrees that the Lessor is the owner
of, and the Lessor or its Permitted Nominee holds legal title to, the Vehicles.
The Lessee shall not acquire by virtue of this Agreement any right, equity,
title or interest in or to any Vehicles, except the right to use the same under
the terms hereof. The parties agree that this Agreement is a “true lease” and
agree to treat this Agreement as a lease for all purposes, including tax,
accounting and otherwise and each party hereto will take no position on its tax
returns and filings contrary to the position that the Lessor is the owner of
the Vehicles for federal and state income tax purposes.

(b)     If, notwithstanding the intent of the parties to this Agreement, this
Agreement is characterized by any third party as a financing arrangement or as
otherwise not constituting a “true lease,” then it is the intention of the
parties that this Agreement shall constitute a security agreement under
applicable law, and, to secure all of its obligations under this Agreement, the
Lessee hereby grants to the Lessor a security interest in all of the Lessee’s
right, title and interest, if any, in and to all of the following assets,
property and interests in property, whether now owned or hereafter acquired or
created:

(i)     the rights of the Lessee under this Agreement, as such Agreement
may be amended, modified or supplemented from time to time in accordance
with its terms, and any other agreements related to or in connection with
this Agreement, to which the Lessee is a party (the “Lessee
Agreements”), including, without limitation, (a) all monies, if any,
due and to become due to the Lessee from any other Person under or in
connection with any of the Lessee Agreements, whether payable as rent,
guaranty payments, fees, expenses, costs, indemnities, insurance
recoveries, damages for the breach of any of the Lessee Agreements or
otherwise, (b) all rights, remedies, powers, privileges and claims of the
Lessee against any other party under or with respect to the Lessee
Agreements (whether arising pursuant to the terms of such Lessee
Agreements or otherwise available to the Lessee at law or in equity),
including the right to enforce any of the Lessee Agreements and to give
or withhold any and all consents, requests, notices, directions,
approvals, extensions or waivers under or with respect to the Lessee
Agreements or the obligations and liabilities of any party thereunder,
(c) all liens and property from time to time purporting to secure payment
of the obligations and liabilities of the Lessee arising under or in
connection with the Lessee Agreements, and any documents or agreements
describing any collateral securing such obligations or liabilities and
(d) all guarantees, insurance and other agreements or arrangements of
whatever character from time to time supporting or securing payment of
such obligations and liabilities of the Lessee pursuant to the Lessee
Agreements;

(ii)     all Vehicles leased by the Lessee from the Lessor under this
Agreement, which, notwithstanding that this Agreement is intended to
convey only a leasehold
interest, are determined to be owned by the Lessee or any Permitted
Sublessee, and all Certificates of Title with respect to such Vehicles;

(iii)     all right, title and interest of the Lessee in, to and under
any Manufacturer Programs, including any amendments thereof, and all
monies due and to become due

2

 

thereunder, in each case in respect of the
Vehicles leased hereunder which, notwithstanding that this Agreement is
intended to convey only a leasehold interest, are determined to be owned
by the Lessee, whether payable as Vehicle repurchase prices, auction
sales proceeds, fees, expenses, costs, indemnities, insurance recoveries,
damages for breach of the Manufacturer Programs or otherwise (but
excluding all incentive payments payable to the Lessee or the Lessor in
respect of purchases of vehicles under the Manufacturer Programs) and all
rights to compel performance and otherwise exercise remedies thereunder;

(iv)     all right, title and interest of the Lessee in and to any
Proceeds from the sale of the Vehicles leased hereunder (including,
without limitation, the sale of any such Vehicles by the Intermediary)
which, notwithstanding that this Agreement is intended to convey only a
leasehold interest, are determined to be owned by the Lessee, including
all monies due in respect of such Vehicles, whether payable as the
purchase price of such Vehicles, as auction sales proceeds, or as fees,
expenses, costs, indemnities, insurance recoveries, or otherwise
(including all upfront incentive payments payable by Manufacturers to the
Lessee or the Lessor in respect of purchases of Non-Program Vehicles);

(v)     all payments under insurance policies (whether or not the
Lessor, the Lender or the Trustee is named as the loss payee thereof) or
any warranty payable by reason of loss or damage to, or otherwise with
respect to, any of the Vehicles leased hereunder;

(vi)     all additional property that may from time to time hereafter be
subjected to the grant and pledge under this Agreement, as same may be
modified or supplemented from time to time, by the Lessee or by anyone on
its behalf; and

(vii)     all Proceeds of any and all of the foregoing including,
without limitation, payments under insurance (whether or not the Lessor
is named as the loss payee thereof) and cash.

(c)     To secure all of the Lessee’s obligations under this Agreement, the
Lessee hereby grants to the Lessor a security interest in all of the Lessee’s
right, title and interest, in and to all of the following assets, property and
interests in property, if any, whether now owned or hereafter acquired or
created (the “Sublease Collateral”): the rights of the Lessee under each
Sublease entered into from time to time relating to the Vehicles leased
hereunder, as each such Sublease may be amended, modified or supplemented from
time to time in accordance with its terms, including, without limitation, (i)
all monies due and to become due to the Lessee from any Permitted Sublessee or
any other Person under or in connection with each such Sublease, whether
payable as rent, guaranty payments, fees, expenses, costs, indemnities,
insurance recoveries, damages for the breach of such Sublease or otherwise,
(ii) all rights, remedies,
powers, privileges and claims of the Lessee against any Permitted
Sublessee or any other party under or with respect to each such Sublease
(whether arising pursuant to the terms of such Sublease or otherwise available
to the Lessee at law or in equity), including the right to enforce such
Sublease and to give or withhold any and all consents, requests, notices,
directions, approvals, extensions or waivers under or with respect to such
Sublease or the obligations and

3

 

liabilities of any party thereunder, (iii) all
liens and property from time to time purporting to secure payment of the
obligations and liabilities of a Permitted Sublessee arising under or in
connection with each such Sublease, and any documents or agreements describing
any collateral securing such obligations or liabilities, (iv) all guarantees,
insurance and other agreements or arrangements of whatever character from time
to time supporting or securing payment of such obligations and liabilities of
such Permitted Sublessee pursuant to such Sublease and (v) all Proceeds of any
and all of the foregoing. The Lessor shall have all of the rights and remedies
of a secured party with respect to each Sublease, including, without
limitation, the rights and remedies granted under the UCC.

(d)     To secure the CRCF Obligations, the Lessee hereby grants to the
Trustee, on behalf of the Secured Parties, a first-priority security interest
in all of the Lessee’s right, title and interest, if any, in and to all of the
collateral described in Sections 2(b) and 2(c) above, whether now
owned or hereafter acquired or created. Upon the occurrence of a Liquidation
Event of Default or a Limited Liquidation Event of Default and subject to the
provisions of the Related Documents, the Trustee shall have all of the rights
and remedies of a secured party, including, without limitation, the rights and
remedies granted under the UCC.

(e)     The Lessee agrees to deliver to the Lessor, the Lender and the Trustee
on or before the Restatement Effective Date:

(i)     a written search report from a Person satisfactory to the
Lessor, the Lender and the Trustee listing all effective financing
statements that name the Lessee as debtor or assignor, and that are filed
in the jurisdictions in which filings were made pursuant to clause (ii)
below, together with copies of such financing statements, and tax and
judgment lien search reports from a Person satisfactory to the Lessor,
the Lender and the Trustee showing no evidence of liens filed against the
Lessee that purport to affect any Vehicles leased hereunder or any
Collateral under the Indenture; and

(ii)     draft financing statements on Form UCC-1 to be filed in the
jurisdiction where the Lessee is located under Section 9-307 of
the UCC naming the Lessee, as debtor, the Lessor, as secured party, and
the Trustee, as assignee of the secured party, covering the collateral
described in Sections 2(b) and (c) hereof.

(f)     The Lessee hereby authorizes each of the Lessor and the Trustee to
file (provided that the Trustee shall have no obligation to so file), or cause
to be filed, financing or continuation statements, and amendments thereto and
assignments thereof, under the UCC in order to perfect its interest in the
security granted pursuant to Section 2(b).

(g)     The Lessee agrees to file, or cause to be filed, the financing
statements delivered in draft form pursuant to Section 2(e)(ii) on or
before the third (3rd) Business Day following the Restatement Effective Date.

2.1.     Lease and Acquisition of Vehicles. From time to time, subject
to the terms and provisions hereof, the Lessor agrees to lease to the Lessee
and the Lessee agrees to lease from the Lessor, subject to the terms hereof,
(i) the new vehicles identified in vehicle orders (each such vehicle order, a
“Vehicle Order”) placed by the Lessee pursuant to the terms of the

4

 

Manufacturer Programs with respect to Program Vehicles and Non-Program Vehicles
(to the extent such Non-Program Vehicles are subject to a Manufacturer Program)
and as otherwise agreed by the Lessor, the Lessee and a dealer with respect to
other Non-Program Vehicles and (ii) the Vehicles identified in the computer
file delivered by the Lessee to the Trustee on the date hereof which were
leased pursuant to the Prior AESOP I Operating Lease immediately prior to the
effectiveness of this Agreement. If requested by the Lessor, the Lessee shall
make each Vehicle Order with respect to each Vehicle leased hereunder available
to the Lessor, together with a schedule containing the information with respect
to such Vehicle included within such Vehicle Order as is set forth in
Attachment A hereto (each, a “Vehicle Acquisition Schedule”), or
in such form as is otherwise requested by the Lessor. In addition, the Lessee
agrees to provide such other information regarding such Vehicles as the Lessor
may require from time to time. This Agreement, together with the Manufacturer
Programs and any other related documents attached to this Agreement or
submitted with a Vehicle Order (collectively, the “Supplemental
Documents”), will constitute the entire agreement regarding the leasing of
Vehicles by the Lessor to the Lessee.

2.2.     Right of Lessee to Act as Lessor’s Agent. The Lessor agrees
that the Lessee may act as the Lessor’s agent in placing Vehicle Orders on
behalf of the Lessor, as well as filing claims on behalf of the Lessor for
damage in transit, and other Manufacturer delivery claims related to the
Vehicles leased hereunder; provided, however, that the Lessor may
hold the Lessee liable for losses due to the Lessee’s actions, or failure to
act, in performing as the Lessor’s agent in accordance with the terms hereof.
In addition, the Lessor agrees that the Lessee may make arrangements for
delivery of Vehicles leased hereunder to a location selected by the Lessee at
its expense. The Lessee agrees to accept Vehicles leased hereunder as produced
and delivered except that the Lessee will have the option to reject any such
Vehicle that may be rejected pursuant to the terms of the applicable
Manufacturer Program (with respect to Program Vehicles and Non-Program Vehicles
subject to a Manufacturer Program), or in accordance with its customary
business practices with respect to other Non-Program Vehicles. The Lessee,
acting as agent for the Lessor, shall be responsible for pursuing any rights of
the Lessor with respect to the return to the Manufacturer of any Vehicle leased
hereunder that has been rejected pursuant to the preceding sentence. The
Lessee agrees that all Program Vehicles ordered as provided herein shall be
ordered utilizing the procedures consistent with an Eligible Manufacturer
Program. Without limiting the foregoing, the Lessee agrees to give immediate
notice to the Lessor, in such form and to such address as the Lessor may from
time to time specify and in accordance with the terms of the Master Exchange
Agreement, of each acceptance and of any rejection of any Program Vehicle
identified by the Lessor as Replacement Property.

2.3.     Payment of Capitalized Cost by Lessor. Upon delivery of any new Vehicle, the Lessor shall pay to the
authorized dealer, if any, that sold such Vehicle to the Lessor, the
Capitalized Cost for such Vehicle and the Lessee shall pay all applicable costs
and expenses of freight, packing, handling, storage, shipment and delivery of
such Vehicle, and sales and use tax (if any), to the extent that the same have
not been included in the Capitalized Cost for such Vehicle.

2.4.     Non-Liability of Lessor. The Lessor shall not be liable to
the Lessee for any failure or delay in obtaining Vehicles or making delivery
thereof. AS BETWEEN THE LESSOR AND THE LESSEE, ACCEPTANCE FOR LEASE OF THE
VEHICLES LEASED

5

 

HEREUNDER SHALL CONSTITUTE THE LESSEE’S ACKNOWLEDGMENT AND
AGREEMENT THAT THE LESSEE HAS FULLY INSPECTED SUCH VEHICLES, THAT SUCH VEHICLES
ARE IN GOOD ORDER AND CONDITION AND ARE OF THE MANUFACTURE, DESIGN,
SPECIFICATIONS AND CAPACITY SELECTED BY THE LESSEE, THAT THE LESSEE IS
SATISFIED THAT THE SAME ARE SUITABLE FOR THIS USE AND THAT THE LESSOR IS NOT A
MANUFACTURER OR ENGAGED IN THE SALE OR DISTRIBUTION OF VEHICLES, AND HAS NOT
MADE AND DOES NOT HEREBY MAKE ANY REPRESENTATION, WARRANTY OR COVENANT WITH
RESPECT TO MERCHANTABILITY, CONDITION, QUALITY, DURABILITY OR SUITABILITY OF
SUCH VEHICLES IN ANY RESPECT OR IN CONNECTION WITH OR FOR THE PURPOSES OR USES
OF THE LESSEE, OR ANY OTHER REPRESENTATION, WARRANTY OR COVENANT OF ANY KIND OR
CHARACTER, EXPRESS OR IMPLIED, WITH RESPECT THERETO. The Lessor shall not be
liable for any failure or delay in delivering any Vehicle ordered for lease
pursuant to this Agreement, or for any failure to perform any provision hereof,
resulting from fire or other casualty, natural disaster, riot, strike or other
labor difficulty, governmental regulation or restriction, or any cause beyond
the Lessor’s direct control. IN NO EVENT SHALL THE LESSOR BE LIABLE FOR ANY
INCONVENIENCES, LOSS OF PROFITS OR ANY OTHER CONSEQUENTIAL, INCIDENTAL OR
SPECIAL DAMAGES RESULTING FROM ANY DEFECT IN OR ANY THEFT, DAMAGE, LOSS OR
FAILURE OF ANY VEHICLE, AND THERE SHALL BE NO ABATEMENT OF MONTHLY BASE RENT,
SUPPLEMENTAL RENT OR OTHER AMOUNTS PAYABLE HEREUNDER BECAUSE OF THE SAME.

2.5.     Lessee’s Right to Purchase Vehicles. The Lessee shall have
the option, exercisable with respect to any Vehicle during the Vehicle Term
with respect to such Vehicle, to purchase any Vehicle leased hereunder at the
greater of (i) the Termination Value or (ii) the Market Value of such Vehicle,
in each case, as of the Payment Date with respect to the Related Month in which
the Lessee elects to purchase such Vehicle (the greater of such amounts being
referred to as the “Vehicle Purchase Price”), in which event the Lessee
will pay the Vehicle Purchase Price to the Lessor on or before such Payment
Date and the Lessee will pay on or before such Payment Date all accrued and
unpaid Monthly Base Rent and any Supplemental Rent then due and payable with
respect to such Vehicle through such Payment Date. The Lessor shall request
title to any such Vehicle to be transferred to the Lessee and the Administrator
shall request the Trustee to cause its Lien to be removed from the Certificate
of Title for such Vehicle, concurrently with or promptly after the Vehicle
Purchase Price for such Vehicle (and any such unpaid Monthly Base Rent and
Supplemental Rent) is deposited in the Collection Account. Notwithstanding the
foregoing, with respect to any Vehicle that, when acquired by the Lessor, was a
Replacement Vehicle, and with respect to any other Vehicle that the Lessor may
wish to designate as Relinquished Property, the Lessee’s right to purchase
shall be solely in the discretion of the Lessor.

2.6.     Lessor’s Right to Cause Vehicles to be Sold. (a) If the
Lessee does not elect to purchase any Vehicle leased hereunder pursuant to
Section 2.5 (or, pursuant to the last sentence of such Section
2.5, is not permitted to purchase a particular Vehicle), then:

(i) notwithstanding anything to the contrary contained herein, with
respect to Program Vehicles leased hereunder, and subject to Sections
2.5 and 13.2, the Lessor shall

6

 

have the right, at any time following
the date ninety (90) days prior to the expiration of the Maximum Term for
such Program Vehicle, to require that the Lessee or another Person
designated by the Lessor, which Person’s compensation will be payable
solely from the proceeds from the sale of such Vehicle, exercise
commercially reasonable efforts to arrange for the sale of such Vehicle
to a third party for the Vehicle Purchase Price with respect to such
Vehicle, in which event the Lessee or such other designated Person shall,
until not later than the date thirty (30) days prior to the expiration of
such Maximum Term, exercise commercially reasonable efforts to arrange
for the sale of such Vehicle to a third party for a price (as reduced by
the amount of compensation to be paid to any such other designated
Person) equal to or greater than the Termination Value thereof. If a
sale of such Program Vehicle is arranged by the Lessee or such other
designated Person prior to such date thirty (30) days prior to the
expiration of such Maximum Term, then (i) the Lessee or such other
designated Person shall deliver such Vehicle to the purchaser thereof,
(ii) the Lessee or such other designated Person shall cause to be
delivered to the Lessor the funds paid for such Vehicle by the purchaser
and (iii) the Administrator shall request the Trustee to cause its Lien
to be removed from the Certificate of Title for such Vehicle. If the
Lessee or such other designated Person is unable to arrange for a sale of
such Vehicle prior to such date thirty (30) days prior to the expiration
of such Maximum Term, then the Lessee or such other designated Person
shall cease attempting to arrange for such a sale and the Lessee shall
return or cause to be returned such Vehicle, if a Manufacturer Event of
Default has not occurred, to the applicable Manufacturer as provided in
Section 13.2(a) (and, if so requested by the Lessor, shall
cooperate with the Lessor to effect any such return in accordance with
the provisions of the Master Exchange Agreement); and

(ii)     with respect to Non-Program Vehicles leased hereunder and
subject to the exercise of the Lessee’s rights under Section 2.5,
the Lessee shall use commercially reasonable efforts to arrange for the
sale of each Non-Program Vehicle leased hereunder to a third party for
the Vehicle Purchase Price with respect to such Vehicle on or prior to
the date that is the last Business Day of the month that is eighteen (18)
months after the month in which the Vehicle Operating Lease Commencement
Date occurs with respect to such Vehicle. The Lessee may return or cause
to be returned a Non-Program Vehicle subject to a Manufacturer Program to
the applicable Manufacturer under such
Manufacturer Program; provided that (i) the Repurchase Price
of such Vehicle, together with any Special Default Payments payable by
the Lessee with respect to such Vehicle, is at least equal to the
Termination Value with respect to such Vehicle, (ii) no Manufacturer
Event of Default shall have occurred with respect to such Manufacturer
and (iii) by the date on which such Vehicle is returned to the
Manufacturer, the Trustee and the Lender shall have received a copy of an
Assignment Agreement with respect to such Manufacturer Program.
Notwithstanding the disposition of a Non-Program Vehicle by the Lessee
prior to the applicable Vehicle Operating Lease Expiration Date, the
Lessee shall pay to the Lessor all accrued and unpaid Monthly Base Rent
and any Supplemental Rent then due and payable with respect to such
Non-Program Vehicle through the Payment Date with respect to the Related
Month during which such disposition occurred, unless such Non-Program
Vehicle is a Standard Casualty or becomes an Ineligible Vehicle, payment
for which will be made in accordance with Section 6 hereof. If a
sale of such Non-Program Vehicle is arranged by the Lessee pursuant to
this Section 2.6(a)(ii),

7

 

then (x) the Lessee shall deliver the
Vehicle to the purchaser thereof, (y) the Lessee shall cause to be
delivered to the Lessor the funds paid for such Vehicle by the purchaser
and (z) the Administrator shall request the Trustee to cause its Lien to
be removed from the Certificate of Title for such Vehicle.

(b)     In the event any Vehicle or Vehicles leased hereunder are not
purchased by the Lessee pursuant to Section 2.5 hereof or sold to a
third party or returned to a Manufacturer pursuant to Section 2.6(a),
then, in the case of a Non-Program Vehicle, the Lessee shall return or cause to
be returned such Vehicle to the Lessor on the Payment Date with respect to the
Related Month in which the applicable Vehicle Operating Lease Expiration Date
falls, or, in the case of a Program Vehicle, the Lessee shall dispose of such
Vehicle in accordance with the procedures set forth in Section 13.2(a),
and, in each case, the Lessee shall pay an amount equal to all accrued but
unpaid Monthly Base Rent and all Supplemental Rent payable with respect to such
Vehicles through the Payment Date on which such Non-Program Vehicle was
returned or with respect to the Related Month during which such Program Vehicle
was returned to its Manufacturer pursuant to Section 13.2(a).

2.7.     Redesignation of Vehicles. At any time, including without
limitation, if a Program Vehicle becomes ineligible for repurchase by its
Manufacturer or for sale at auction under the applicable Manufacturer Program
or the return of a Program Vehicle to the applicable Manufacturer cannot
otherwise be effected for any reason (including by reason of the occurrence of
a Manufacturer Event of Default with respect to the Manufacturer of such
Program Vehicle or the failure of a Manufacturer to accept such Program Vehicle
for repurchase and acceptance is not expected upon a subsequent return), the
Lessee may redesignate a Program Vehicle as a Non-Program Vehicle;
provided that (i) no Amortization Event or Potential Amortization Event
has occurred and is continuing and (ii) no violation of the requirements of
Section 10.13 of the AESOP I Operating Lease Loan Agreement or
Section 2.8 hereof would be caused by such redesignation;
provided, further, in each case, that (x) the Lessee shall pay to
the Lessor on the next succeeding Payment Date an amount equal to the
difference, if any, between the Net Book Value of such Vehicle as of the date
of redesignation and an amount equal to the Net Book Value of such Vehicle as
of the date of redesignation had such Vehicle been a Non-Program Vehicle at the
time of delivery thereof
pursuant to Section 2.1 and (y) the Required Enhancement Amount
required under each Supplement, after giving effect to such redesignation,
shall be satisfied on the date of redesignation.

2.8.     Limitations on the Acquisition or Redesignation of Certain
Vehicles. Unless otherwise specified in a Supplement or unless waived by
the Required Noteholders as specified in a Supplement, (a) the aggregate Net
Book Value of all Vehicles (or such portion thereof as is specified in such
Supplement) manufactured by Manufacturers other than Eligible Non-Program
Manufacturers and leased under this Agreement (after giving effect to the
inclusion of such Vehicle under this Agreement) and the Finance Lease as of
such date shall not exceed any applicable Maximum Non-Eligible Manufacturer
Amount, (b) the aggregate Net Book Value of all Non-Program Vehicles (or such
portion thereof as is specified in such Supplement) leased under this Agreement
(after giving effect to the inclusion or redesignation, as the case may be, of
such Vehicle under this Agreement) and the Finance Lease as of such date shall
not exceed any applicable Maximum Non-Program Vehicle Amount, (c) the aggregate
Net Book Value of all Vehicles (or such portion thereof as is specified in such
Supplement) manufactured by a

8

 

particular Manufacturer or group of Manufacturers
and leased under the Leases (after giving effect to the inclusion of such
Vehicle under this Agreement) as of such date shall not exceed any applicable
Maximum Manufacturer Amount, (d) the aggregate Net Book Value of all Vehicles
(or such portion thereof as is specified in such Supplement) titled in the
States of Ohio, Oklahoma and Nebraska and leased under this Agreement (after
giving effect to the inclusion of such Vehicle under this Agreement) and the
AESOP II Operating Lease as of such date shall not exceed any applicable
Maximum Specified States Amount and (e) after giving effect to the inclusion or
redesignation of such Vehicle under this Agreement, there shall not be a
failure or violation of any other conditions, requirements or restrictions with
respect to the leasing of Eligible Vehicles under this Agreement as is
specified in any Supplement.

2.9.     Compliance with Master Exchange Agreement. In connection with
(x) any return of a Program Vehicle leased hereunder by the Lessee to a
Manufacturer pursuant to Section 13.2(a) or (y) any sale by the Lessee
of a Non-Program Vehicle leased hereunder to a third party or any return by the
Lessee to a Manufacturer of a Non-Program Vehicle leased hereunder subject to a
Manufacturer Program, in each case pursuant to Section 2.6(a)(ii), the
Lessee agrees, to the extent requested by the Lessor, to cooperate with the
Lessor in effecting such sales or returns on behalf of the Lessor pursuant to,
and in accordance with, the terms of the Master Exchange Agreement.

3.          TERM.

3.1.     Vehicle Term. (a) The “Vehicle Operating Lease
Commencement Date” for each Vehicle shall mean the day as referenced in the
Vehicle Acquisition Schedule (including any Vehicle Acquisition Schedule
delivered under the Prior AESOP I Operating Lease) with respect to such
Vehicle, but in no event shall such date be a date later than the date that
funds are expended or allocated by the Lessor or the Intermediary to acquire
such Vehicle. The “Vehicle Term” with respect to each Vehicle shall
extend from the Vehicle Operating Lease Commencement Date through the earliest
of (i) if such Vehicle is a Program Vehicle or a Non-Program Vehicle
returned to a Manufacturer under a Manufacturer Program, the Turnback Date for
such Vehicle, (ii) if such Vehicle is sold to a third party (other than through
an auction conducted by or through or arranged by the Manufacturer pursuant to
its Manufacturer Program), the date on which funds in respect of such sale are
first deposited in either the Collection Account or a Joint Collection Account
(by such third party or by the Lessee on behalf of such third party) and such
funds equal or exceed the Termination Value of such Vehicle, (iii) if such
Vehicle becomes a Standard Casualty or an Ineligible Vehicle, the date funds in
the amount of the Termination Value thereof are deposited in the Collection
Account by the Lessee, (iv) the date that such Vehicle is purchased by the
Lessee pursuant to Section 2.5 hereof and the Vehicle Purchase Price
with respect to such purchase (and any unpaid Monthly Base Rent and
Supplemental Rent with respect to such Vehicle) is deposited in the Collection
Account by the Lessee and (v) the date that is the last Business Day of the
month that is eighteen (18) months after the month in which the Vehicle
Operating Lease Commencement Date occurs with respect to such Vehicle (the
earliest of such five dates described in the foregoing clauses (i)
through (v) being referred to as the “Vehicle Operating Lease
Expiration Date”).

(b)      Subject to the provisions of Sections 2.5 and 2.6, the
Lessee shall use its commercially reasonable efforts to return or cause to be
returned each Program Vehicle leased

9

 

hereunder to the related Manufacturer (or
such Manufacturer’s agent or as otherwise directed by such Manufacturer in
accordance with such Manufacturer Program) (a) not prior to the end of the
minimum holding period specified in the related Manufacturer Program (prior to
which the Lessor may not return such Program Vehicle without penalty (the
“Minimum Term”)) and (b) not later than the end of the maximum holding
period (after which the Lessor may not return such Program Vehicle without
penalty (the “Maximum Term”)); provided, however, that the
Lessee shall in any case return or cause to be returned each Program Vehicle
leased hereunder to the related Manufacturer (or such Manufacturer’s agent or
as otherwise directed by such Manufacturer in accordance with such Manufacturer
Program) pursuant to Section 13.2 on or before the date that is the last
Business Day of the month that is eighteen (18) months after the month in which
the Vehicle Operating Lease Commencement Date occurs with respect to such
Vehicle. The Lessee will pay to the Lessor the equivalent of the Monthly Base
Rent for the Minimum Term with respect to any Program Vehicles returned before
the Minimum Term plus any early turn back surcharges payable by the
Lessor or deductible from the Repurchase Price of such Vehicle regardless of
actual usage, unless such Vehicle is a Standard Casualty or becomes an
Ineligible Vehicle, in which case, the disposition of such Vehicle will be
handled in accordance with Section 6 hereof.

3.2.     Term. The “AESOP I Operating Lease Commencement Date”
shall mean the Initial Closing Date. The “AESOP I Operating Lease
Expiration Date” shall mean the latest of (i) the date of the payment in
full of all Loans (including any Loan Interest thereon) the proceeds of which
were used by the Lessor to finance the purchase of Vehicles subject to this
Agreement, (ii) the Vehicle Operating Lease Expiration Date for the last
Vehicle leased hereunder and (iii) the date on which all amounts payable
hereunder and under the Loan Agreements have been paid in full. The
“Term” of this Agreement shall mean the period commencing on the AESOP I
Operating Lease Commencement Date and ending on the AESOP I Operating Lease
Expiration Date.

4.          RENT AND CHARGES. The Lessee will pay Monthly Base Rent and any
Supplemental Rent due and payable on a monthly basis (and any Special Service
Charges due and payable) as set forth in this Section 4.

4.1.     Payment of Rent. On each Payment Date the Lessee shall pay in
immediately available funds to the Lessor not later than 11:00 a.m., New York
City time, on such Payment Date (i) all Monthly Base Rent that has accrued
during the Related Month with respect to each Vehicle leased hereunder during
or prior to the Related Month and (ii) all Supplemental Rent due and payable on
such Payment Date.

4.2.     Special Service Charges. On each Payment Date, or on such
other Business Day as the Lessor shall request, the Lessee shall pay in
immediately available funds to, or at the direction of, the Lessor, not later
than 11:00 a.m., New York City time, on such date, the Special Service Charges
determined by the Lessor to be due and payable hereunder on such date with
respect to Vehicles leased hereunder. The provisions of this Section
4.2 will survive the expiration or earlier termination of the Term.

4.3.     Net Lease. THIS AGREEMENT SHALL BE A NET LEASE, AND THE
LESSEE’S OBLIGATION TO PAY ALL MONTHLY BASE RENT, SUPPLEMENTAL RENT

10

 

AND OTHER
SUMS HEREUNDER SHALL BE ABSOLUTE AND UNCONDITIONAL, AND SHALL NOT BE SUBJECT TO
ANY ABATEMENT, SETOFF, COUNTERCLAIM, DEDUCTION OR REDUCTION FOR ANY REASON
WHATSOEVER. The obligations and liabilities of the Lessee hereunder shall in
no way be released, discharged or otherwise affected (except as may be
expressly provided herein including, without limitation, the right of the
Lessee to reject Vehicles pursuant to Section 2.2 hereof) for any
reason, including, without limitation: (i) any defect in the condition,
merchantability, quality or fitness for use of the Vehicles or any part
thereof; (ii) any damage to, removal, abandonment, salvage, loss, scrapping or
destruction of or any requisition or taking of the Vehicles or any part
thereof; (iii) any restriction, prevention or curtailment of or interference
with any use of the Vehicles or any part thereof; (iv) any defect in or any
Lien on title to the Vehicles or any part thereof; (v) any change, waiver,
extension, indulgence or other action or omission in respect of any obligation
or liability of the Lessee or the Lessor; (vi) any bankruptcy, insolvency,
reorganization, composition, adjustment, dissolution, liquidation or other like
proceeding relating to the Lessee, the Lessor or any other Person, or any
action taken with respect to this Agreement by any trustee or receiver of any
Person mentioned above, or by any court; (vii) any claim that the Lessee has or
might have against any Person, including, without limitation, the Lessor;
(viii) any failure on the part of the Lessor to perform or comply with any of
the terms hereof or of any other agreement; (ix) any invalidity or
unenforceability or disaffirmance of this Agreement or any provision hereof or
any of the other Related Documents or any provision of any thereof, in each
case whether against or by the Lessee or otherwise; (x)
any insurance premiums payable by the Lessee with respect to the Vehicles;
(xi) any failure of a Permitted Sublessee to perform its obligations under the
Sublease to which it is a party; or (xii) any other occurrence whatsoever,
whether similar or dissimilar to the foregoing, whether or not the Lessee shall
have notice or knowledge of any of the foregoing and whether or not foreseen or
foreseeable. This Agreement shall be noncancelable by the Lessee and, except
as expressly provided herein, the Lessee, to the extent permitted by law,
waives all rights now or hereafter conferred by statute or otherwise to quit,
terminate or surrender this Agreement, or to any diminution or reduction of
Monthly Base Rent, Supplemental Rent or other amounts payable by the Lessee
hereunder. All payments by the Lessee made hereunder shall be final (except to
the extent of adjustments provided for herein), absent manifest error and,
except as otherwise provided herein, the Lessee shall not seek to recover any
such payment or any part thereof for any reason whatsoever, absent manifest
error. If for any reason whatsoever this Agreement shall be terminated in
whole or in part by operation of law or otherwise except as expressly provided
herein, the Lessee shall nonetheless pay all Monthly Base Rent, all
Supplemental Rent and all other amounts due hereunder at the time and in the
manner that such payments would have become due and payable under the terms of
this Agreement as if it had not been terminated in whole or in part. All
covenants and agreements of the Lessee herein shall be performed at its cost,
expense and risk unless expressly otherwise stated.

5.          INSURANCE. The Lessee represents that it shall at all times
maintain or cause to be maintained insurance coverage in force as follows:

5.1.     Personal Injury and Damage. Insurance coverage as set forth
in Section 31.3 hereof. In addition, the Lessee will maintain with
respect to the Lessee’s properties and businesses insurance against loss or
damage of the kind customarily insured against by

11

 

corporations engaged in the
same or similar businesses, of such types and in such amounts as are
customarily carried by such similarly situated corporations.

5.2.     Delivery of Certificate of Insurance. Within ten (10) days
after the Initial Closing Date, the Lessee shall have delivered to the Lessor a
certificate(s) of insurance naming the Lender, the Lessor, Original AESOP,
PVHC, Quartx and the Trustee as additional insureds as to the item required by
Section 31.3. Such insurance shall not be changed or canceled except as
provided below in Section 5.3.

5.3.     Changes in Insurance Coverage. No changes shall be made in
any of the foregoing insurance requirements unless the prior written consent of
the Lessor, the Lender and the Trustee are first obtained. The Lessor may
grant or withhold its consent to any proposed change in such insurance in its
sole discretion. The Lender and the Trustee shall be required to grant their
consent to any proposed change in such insurance upon compliance with the
following conditions:

(i)     the Lessee shall deliver not less than thirty (30) days’ prior
written notice of any proposed change in such insurance to the Lender and
the Trustee; and

(ii)     the proposed change will satisfy the Rating Agency Confirmation
Condition.

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

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

6.2.     Casualty; Ineligible Vehicles. If a Vehicle becomes a
Standard Casualty or an Ineligible Vehicle, then the Lessee will (i) promptly
notify the Lessor thereof and (ii) promptly, but in no event later than the
Payment Date with respect to the Related Month during which such Vehicle became
a Standard Casualty or an Ineligible Vehicle, pay to the Lessor the Termination
Value of such Vehicle (as of the date such Vehicle became a Standard Casualty
or an Ineligible Vehicle). Upon payment by the Lessee to the Lessor of the
Termination Value of any Vehicle that has become a Standard Casualty or an
Ineligible Vehicle (i) the Lessor shall cause title to such Vehicle to be
transferred to the Lessee to facilitate liquidation of such Vehicle by the
Lessee, (ii) the Lessee shall be entitled to any physical damage insurance
proceeds applicable to such Vehicle and (iii) the Administrator shall request
the Trustee to cause its Lien to be removed from the Certificate of Title for
such Vehicle.

7.          VEHICLE USE. So long as no AESOP I Operating Lease Event of
Default, Liquidation Event of Default or Limited Liquidation Event of Default
has occurred

12

 

(subject, however, to Section 2.6 hereof), the Lessee may
use each Vehicle leased hereunder in its regular course of business and may
sublease such Vehicle to Permitted Sublessees from time to time pursuant to
subleases (each such agreement, a “Sublease”), substantially in the form
of the agreement attached hereto as Attachment C, for use in the rental
car businesses of such Permitted Sublessees. Such use shall be confined
primarily to the United States; provided, however, that the
principal place of business or rental office of the Lessee and each Permitted
Sublessee with respect to the Vehicles is located in the United States. The
Administrator shall promptly and duly execute, deliver, file and record all
such documents, statements, filings and registrations and take such further
actions as the Lessor, the Lender or the Trustee shall from time to time
reasonably request in order to establish, perfect and maintain the Lessor’s
title to and interest in the Vehicles and the Certificates of Title as against
the Lessee, each Permitted Sublessee or any third party in any
applicable jurisdiction and to establish, perfect and maintain the
Trustee’s Lien on the Vehicles and the Certificates of Title (other than noting
the Lien of the Trustee on the Certificates of Title with respect to Vehicles
titled in the states of Ohio, Oklahoma and Nebraska) as a perfected first lien
in any applicable jurisdiction. The Lessee and each Permitted Sublessee may,
at its sole expense, change the place of principal location of any Vehicles.
Notwithstanding the foregoing, no change of location shall be undertaken unless
and until (x) all actions necessary to maintain the Lien of the Trustee on such
Vehicles and the Certificates of Title (other than noting the Lien of the
Trustee on the Certificates of Title with respect to Vehicles titled in the
states of Ohio, Oklahoma and Nebraska) with respect to such Vehicles shall have
been taken and (y) all legal requirements applicable to such Vehicles shall
have been met or obtained. Following the occurrence of an AESOP I Operating
Lease Event of Default, a Limited Liquidation Event of Default, a Liquidation
Event of Default or a Manufacturer Event of Default, and upon the Lender’s
request, the Lessee shall advise the Lender in writing where all Vehicles
leased hereunder as of such date are principally located. The Lessee shall not
knowingly use any Vehicles or knowingly permit the same to be used for any
unlawful purpose. The Lessee shall use reasonable precautions to prevent loss
or damage to Vehicles. The Lessee shall comply with all applicable statutes,
decrees, ordinances and regulations regarding acquiring, titling, registering,
leasing, insuring and disposing of Vehicles and shall take reasonable steps to
ensure that operators are licensed. The Lessee and the Lessor agree that the
Lessee shall perform, at the Lessee’s own expense, such vehicle preparation and
conditioning services with respect to Vehicles leased hereunder as are
customary. The Lessor, the Lender or the Trustee or any authorized
representative of the Lessor, the Lender or the Trustee may during reasonable
business hours from time to time, without disruption of the Lessee’s or any
Permitted Sublessee’s business, subject to applicable law, inspect Vehicles and
registration certificates, Certificates of Title and related documents covering
Vehicles wherever the same be located. The Lessee shall not sublease any
Vehicles to any Person other than a Permitted Sublessee pursuant to a Sublease
and, except for a sublease to a Permitted Sublessee pursuant to a Sublease, the
Lessee shall not assign any right or interest herein or in any Vehicles;
provided, however, the foregoing shall not be deemed to prohibit
the Lessee or any Permitted Sublessee from renting Vehicles to third-party
customers in the ordinary course of its respective car rental business. If the
Lessee subleases any Vehicle to any Permitted Sublessee from time to time, the
Lessee shall nevertheless remain responsible for all obligations arising
hereunder with respect to such Vehicle.

8.          LIENS. Except for Permitted Liens, the Lessee shall keep all
Vehicles leased hereunder free of all Liens arising during the Term. If on the
Vehicle Operating Lease

13

 

Expiration Date for any Vehicle leased hereunder any
such Lien exists on such Vehicle, the Lessor may, in its discretion, remove
such Lien and any sum of money that may be paid by the Lessor in release or
discharge thereof, including attorneys’ fees and costs, will be paid by the
Lessee upon demand by the Lessor. The Lessor may grant security interests in
the Vehicles leased hereunder without consent of the Lessee; provided,
however, that if any such Liens would interfere with the rights of the
Lessee under this Agreement, the Lessor must obtain the prior written consent
of the Lessee. The Lessee agrees and acknowledges that the granting of Liens
and the taking of other actions pursuant to the Loan Agreements, the Indenture
and the other Related Documents does not interfere with the rights of the
Lessee under this Agreement.

9.          NON-DISTURBANCE. So long as the Lessee satisfies its
obligations hereunder, its quiet enjoyment, possession and use of the Vehicles
leased hereunder will not be disturbed during the Term, subject, however, to
Sections 2.6 and 18 hereof and except that the Lessor and the
Trustee each retains the right, but not the duty, to inspect such Vehicles
without disturbing the ordinary conduct of the Lessee’s or any Permitted
Sublessee’s business. Upon the request of the Lessor, the Lender or the
Trustee from time to time, the Lessee will make reasonable efforts to confirm
to the Lessor, the Lender and the Trustee the location, mileage and condition
of each Vehicle leased hereunder and to make available for the Lessor’s, the
Lender’s or the Trustee’s inspection within a reasonable time period, not to
exceed forty-five (45) days, such Vehicles at the location where such Vehicles
are normally domiciled. Further, the Lessee will, during normal business hours
and with a notice of three (3) Business Days, make its records pertaining to
the Vehicles leased hereunder available to the Lessor, the Lender or the
Trustee for inspection at the location where the Lessee’s records are normally
domiciled.

10.          REGISTRATION; LICENSE; TRAFFIC SUMMONSES; PENALTIES AND FINES. The
Lessee, at its expense, shall be responsible for proper registration and
licensing of the Vehicles leased hereunder, and titling of such Vehicles in the
name of the Lessor or its Permitted Nominee (with the Lien of the Trustee noted
thereon (except with respect to the Vehicles titled in the States of Oklahoma,
Nebraska and Ohio)), and, where required, shall have such Vehicles inspected by
any appropriate Governmental Authority; provided, however, that
notwithstanding the foregoing, possession of all Certificates of Title shall at
all times remain with (i) the Administrator, (ii) SGS Automotive Services,
Inc., (formerly known as and successor in interest to Intermodal Transportation
Services, Inc.), as agent for the Administrator, or (iii) any other titling
service, acting as agent for the Administrator, that is approved in writing by
the Required Noteholders of each Outstanding Series of Notes. The
Administrator, or its agent, shall hold such Certificates of Title in its
capacity as agent for the Lessor and on behalf of the Lender and the Trustee.
The Lessee shall be responsible for the payment of all registration fees, title
fees, license fees, traffic summonses, penalties, judgments and fines incurred
with respect to any Vehicle leased hereunder during the Vehicle Term for such
Vehicle or imposed during the Vehicle Term for such Vehicle by any Governmental
Authority or any court of law or equity with respect to such Vehicles in
connection with the Lessee’s operation of such Vehicles. The Lessor agrees to
execute a power of attorney in substantially the form of Attachment B
hereto (each, a “Power of Attorney”), and such other documents as may be
necessary in order to allow the Lessee to title, register and dispose of the
Vehicles leased hereunder in accordance with the terms hereof; provided,
however, that possession of all Certificates of Title shall at all times
remain with the Administrator, or its agent, who will hold such Certificates of
Title in its capacity as agent for the Lessor and on behalf of the Lender and
the Trustee, and the Lessee

14

 

acknowledges and agrees that it has no right, title
or interest in or with respect to any Certificate of Title. Notwithstanding
anything herein to the contrary, the Lessor may terminate such Power of
Attorney as provided in Section 18.3(iii) hereof.

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

12.          VEHICLE WARRANTIES.

12.1.     No Lessor Warranties. THE LESSEE ACKNOWLEDGES THAT THE
LESSOR IS NOT THE MANUFACTURER, THE AGENT OF THE MANUFACTURER, OR THE
DISTRIBUTOR OF THE VEHICLES LEASED HEREUNDER. THE LESSOR MAKES NO WARRANTY OR
REPRESENTATION, EXPRESS OR IMPLIED, AS TO THE FITNESS, SAFENESS, DESIGN,
MERCHANTABILITY, CONDITION, QUALITY, CAPACITY OR WORKMANSHIP OF THE VEHICLES
NOR ANY WARRANTY THAT THE VEHICLES WILL SATISFY THE REQUIREMENTS OF ANY LAW OR
ANY CONTRACT SPECIFICATION, AND AS BETWEEN THE LESSOR AND THE LESSEE, THE
LESSEE AGREES TO BEAR ALL SUCH RISKS AT ITS SOLE COST AND EXPENSE. THE LESSEE
SPECIFICALLY WAIVES ALL RIGHTS TO MAKE CLAIMS AGAINST THE LESSOR AND ANY
VEHICLE FOR BREACH OF ANY WARRANTY OF ANY KIND WHATSOEVER AND, AS TO THE
LESSOR, THE LESSEE LEASES THE VEHICLES “AS IS.” IN NO EVENT SHALL THE LESSOR BE
LIABLE FOR SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, WHATSOEVER OR
HOWSOEVER CAUSED.

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

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

13.1.     Usage. As used herein “Vehicle Turn-In Condition” (a)
with respect to each Program Vehicle leased hereunder will be determined in
accordance with the related Manufacturer Program and (b) with respect to each
Non-Program Vehicle leased hereunder shall mean (i) if such Non-Program Vehicle
is manufactured by the same Manufacturer as any

15

 

Program Vehicle leased
hereunder, the same standard as required with respect to such Program
Vehicle and (ii) if such Non-Program Vehicle does not satisfy clause (i)
above, that each such Vehicle shall have no body dents; rust; corrosion; paint
mismatches or special colors, or paint which is less than factory grade;
dented, rusted, broken or missing chrome or trim; ripped or stained upholstery,
seats, dash, headliner, carpeting, trunk, or convertible vinyl top; missing
interior trim; sprung or misaligned doors or their openings; worn, cracked,
split, broken or leaking weather-stripping; faulty window mechanisms; broken,
cracked or missing glass, mirrors or lights; faulty electronic systems,
including on-board computers, processors, sensors, controls, radios, stereos,
and the like; faulty heating, air conditioning or climate control systems; worn
or faulty shock absorbers or other suspension or steering parts, systems or
mechanisms; excessively worn tires; or any other condition that adversely
affects the appearance or operating condition of such Vehicle, in each case
other than any such condition that would reasonably be considered to be normal
wear and tear or otherwise de minimis by the Manufacturer of such
Vehicle (or its authorized agent) under such Manufacturer’s manufacturer
program or, if such Manufacturer does not maintain a manufacturer program,
under the manufacturer program of another manufacturer with comparable sales
volume, and the equivalent of any Excess Damage Charges and Excess Mileage
Charges with respect to such Vehicle shall be determined by the Administrator
and the Lessor in accordance with the foregoing standard.

13.2.     Return. (a) The Lessee will, subject to Sections
2.5, 2.6 and 2.9, return or cause to be returned each Program
Vehicle leased hereunder (other than a Standard Casualty or a Program Vehicle
which has become an Ineligible Vehicle) to the nearest related Manufacturer
official auction or other facility designated by such Manufacturer at the
Lessee’s sole expense or to such other location designated by the Lessor (with
any additional cost of delivery in excess of what would have been incurred upon
delivery to the related Manufacturer at the expense of the Lessor), in each
case in accordance with the requirements of Section 3.1(b) hereof.

(b)     The Lessee agrees that the Vehicles leased hereunder will be in
Vehicle Turn-In Condition upon return to or upon the order of the Lessor. Any
rebate or credits applicable to the unexpired term of any license plates for a
Vehicle leased hereunder shall inure to the benefit of the Lessee.

13.3.     Special Default Payments. (a) The Lessee will use its best
efforts to maintain the Program Vehicles leased hereunder such that no Excess
Damage Charges or Excess Mileage Charges will be deductible from the Repurchase
Price due from a Manufacturer or payable by the Lessor upon the turn back of
such Program Vehicles under the applicable Manufacturer Program. Upon (i) the
deposit of the Repurchase Price of any Program Vehicle leased hereunder payable
by the Manufacturer in the Collection Account or a Joint Collection Account (or
the deposit of the Repurchase Price of any Program Vehicle sold through an
auction conducted by or through a Manufacturer in the Collection Account or a
Joint Collection Account), or (ii) the date by which the Repurchase Price of
such Program Vehicle would have been paid if not for a Manufacturer Event of
Default, the Lessor will charge the Lessee for any Excess Damage Charges and/or
Excess Mileage Charges
applicable to such Program Vehicle pursuant to the applicable Manufacturer
Program (any such charges are referred to as “Program Vehicle Special
Default Payments”).

16

 

(b)     The Lessee will use its best efforts to maintain the Non-Program
Vehicles leased hereunder in a manner such that no Non-Program Vehicle Special
Default Payments (as defined below) shall be due upon disposition of such
Non-Program Vehicles by or for the benefit of the Lessor. Upon disposition of
each Non-Program Vehicle leased hereunder by or for the benefit of the Lessor,
other than the sale of any Non-Program Vehicle to the Lessee in accordance with
the terms hereof, the Lessor will charge the Lessee (i) if such Non-Program
Vehicle is manufactured by the same Manufacturer as any Program Vehicle or is
subject to a Manufacturer Program, an amount equal to any Excess Damage Charges
and/or Excess Mileage Charges that would be applicable to the comparable
Program Vehicle pursuant to the applicable Manufacturer Program or an amount
equal to any Excess Damage Charges and/or Excess Mileage Charges that are
applicable to such Vehicle pursuant to the applicable Manufacturer Program, as
the case may be, and (ii) if such Non-Program Vehicle is subject to a Vehicle
Turn-In Condition standard established pursuant to Section 13.1(b)(ii),
an amount equal to any charges applicable to such Non-Program Vehicle pursuant
to such Vehicle Turn-In Condition standard (any such charges are referred to as
“Non-Program Vehicle Special Default Payments” and, together with the
Program Vehicle Special Default Payments, the “Special Default
Payments”).

(c)     On each Payment Date, the Lessee shall pay to the Lessor all Special
Default Payments that have accrued during the Related Month. The obligation of
the Lessee to pay Special Default Payments shall constitute the sole remedy
respecting the breach of its covenant contained in the first sentence of each
of Section 13.3(a) and 13.3(b).

(d)     The provisions of this Section 13.3 will survive the expiration
or earlier termination of the Term.

13.4.     Early Termination Payments. With respect to any Program
Vehicle leased hereunder that is turned back to the Manufacturer under its
Manufacturer Program (including by the Intermediary pursuant to the Master
Exchange Agreement), upon the earlier of (i) the deposit of the Repurchase
Price of such Vehicle in the Collection Account or a Joint Collection Account
and (ii) the date by which such Repurchase Price would have been paid if not
for a Manufacturer Event of Default, the Lessor will charge the Lessee an
amount equal to (i) the excess, if any, of (x) the Termination Value of such
Vehicle (as of the Turnback Date) over (y) the sum of the Repurchase Price
received with respect to such Vehicle or that would have been received but for
a Manufacturer Event of Default, as applicable, and any Special Default
Payments made by the Lessee in respect of such Vehicle pursuant to Section
13.3, plus (ii) any unpaid Monthly Base Rent for the Minimum Term
with respect to such Vehicle plus any early turn back charges payable or
deductible from the Repurchase Price of such Vehicle in accordance with
Section 3.1(b) hereof (any such amount is referred to as an “Early
Termination Payment”). On each Payment Date, the Lessee shall pay to the
Lessor all Early Termination Payments that have accrued during the Related
Month. The provisions of this Section 13.4 will survive the expiration
or earlier termination of the Term.

14.          DISPOSITION PROCEDURE. The Lessee will comply with the requirements of law and the
requirements of the Manufacturer Programs in connection with, among other
things, the delivery of Certificates of Title and documents of transfer signed
as necessary, signed Condition Reports, and signed odometer statements to be
submitted with the Program Vehicles or Non-Program Vehicles returned to a
Manufacturer pursuant to Section 

17

 

2.6(a)
or (b) and accepted by
the Manufacturer or its agent at the time of Program Vehicle or Non-Program
Vehicle return.

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

16.          GENERAL INDEMNITY.

16.1.     Indemnity by the Lessee. The Lessee agrees to indemnify and
hold harmless the Lessor, the Lender, the Intermediary and the Trustee and the
Lessor’s, the Lender’s, the Intermediary’s and the Trustee’s respective
directors, officers, stockholders, agents and employees (collectively, the
“Indemnified Persons”), on a net after-tax basis against any and all
claims, demands and liabilities of whatsoever nature and all costs and expenses
relating to or in any way arising out of:

16.1.1.     the ordering, delivery, acquisition, title on acquisition,
rejection, installation, possession, titling, retitling, registration,
re-registration, custody by the Lessee or its agent of title and
registration documents, use, non-use, misuse, operation, deficiency,
defect, transportation, repair, control or disposition of any Vehicle
leased hereunder or to be leased hereunder pursuant to a request by the
Lessee. The foregoing shall include, without limitation, any liability
(or any alleged liability) of the Lessor to any third party arising out
of any of the foregoing, including, without limitation, all legal fees,
costs and disbursements arising out of such liability (or alleged
liability);

16.1.2.     all (i) federal, state, county, municipal or foreign
license, qualification, registration, franchise, sales, use, gross
receipts, ad valorem, business, property (real or personal), excise,
motor vehicle, and occupation fees and taxes, and all federal, state and
local income taxes, and penalties and interest thereon, and all other
taxes, fees and assessments of any kind whatsoever whether assessed,
levied against or payable by the Lessor or otherwise, with respect to any
Vehicle leased hereunder or the acquisition, purchase, sale, rental,
delivery, use, operation, control, ownership or disposition of any such
Vehicle or measured in any way by the value thereof or by the ownership
by the Lessor with respect thereto and (ii) documentary, stamp, filing,
recording, mortgage or other taxes, if any, which may be payable by the
Lessor in connection with this Agreement or any other Related Documents;
provided, however, that the following taxes are excluded
from the indemnity provided in clauses (i) and (ii) above:

(i) any tax on, based on, with respect to, or measured by net
income (including federal alternative minimum tax) other than any
taxes or other charges which may be imposed as a result of any
determination by a taxing authority that the Lessor is not the
owner for tax purposes of the Vehicles leased hereunder or that
this Agreement is not a “true lease” for tax purposes or that
depreciation deductions that would be available to the owner of
such Vehicles are disallowed, or that the Lessor is not entitled to
include the full purchase price for any such

18

 

Vehicle in basis
including any amounts payable in respect of interest charges,
additions to tax and penalties that may be imposed, and all
attorneys and accountants fees and expenses and all other fees and
expenses that may be incurred in defending against or contesting
any such determination;

(ii)     any withholding tax imposed by the United States federal
government other than such a tax imposed as a result of a change in
law enacted (including new interpretations thereof), adopted or
promulgated after the Initial Closing Date or, if later, the date
the Trustee or the Lender acquires its interest in the Vehicles
leased hereunder or the Loan Agreements, the Indenture, the
Assignment Agreements, or any other related operative documents
that causes it to be an Indemnified Person hereunder unless such a
tax is enacted, adopted or promulgated as a tax in lieu of, or in
substitution for a tax not otherwise indemnifiable hereunder;

(iii)     any tax with respect to any Vehicle leased hereunder or
any transaction relating to such Vehicle to the extent it covers
any period beginning after the earlier of (A) the discharge in full
of the Lessee’s obligation to pay Monthly Base Rent, Supplemental
Rent and any other amount payable hereunder with respect to such
Vehicle and (B) the expiration or other termination of this
Agreement with respect to such Vehicle, unless such tax accrues in
respect of any period during which the Lessee holds over such
Vehicle; and

(iv)     any tax that is imposed on an Indemnified Person or any
of its Affiliates, to the extent that such tax results from the
willful misconduct or gross negligence of such Indemnified Person
or such Affiliates;

16.1.3.     any violation by the Lessee of this Agreement or of any
Related Documents to which the Lessee is a party or by which it is bound
or of any laws, rules, regulations, orders, writs, injunctions, decrees,
consents, approvals, exemptions, authorizations, licenses and
withholdings of objecting of any governmental or public body or authority
and all other requirements having the force of law applicable at any time
to any Vehicle leased hereunder or any action or transaction by the
Lessee with respect thereto or pursuant to this Agreement;

16.1.4.     all out of pocket costs of the Lessor (including the fees
and out of pocket expenses of counsel for the Lessor) in connection with
the execution, delivery and performance of this Agreement and the other
Related Documents;

16.1.5.     all out of pocket costs and expenses (including reasonable
attorneys’ fees and legal expenses) incurred by the Lessor, the Lender,
the Intermediary or the Trustee in connection with the administration,
enforcement, waiver or amendment of this Agreement and any other Related
Documents and all indemnification obligations of the Lender or the Lessor
under the Related Documents (including all obligations of the Lessor
under Section 13.4 and Section 13.5 of the AESOP I
Operating Lease Loan Agreement); and

19

 

16.1.6. all costs, fees, expenses, damages and liabilities
(including, without limitation, the fees and out of pocket expenses of
counsel) in connection with, or arising out of, any claim made by any
third party against the Lessor for any reason (including, without
limitation, in connection with any audit or investigation conducted by a
Manufacturer under its Manufacturer Program).

If the Lessor shall actually receive any tax benefit (whether by way of
offset, credit, deduction, refund or otherwise) not already taken into
account in calculating the net after-tax basis for such payment as a
result of the payment of any tax indemnified pursuant to this Section
16 or in connection with the circumstances giving rise to the
imposition of such tax, such tax benefit shall be used to offset any
indemnity payment owed pursuant to this Section 16 or shall be
paid to the Lessee (but only to the extent of any prior indemnity
payments actually made pursuant to this Section 16 and only after
the Lessor shall actually receive such tax benefits); provided,
however, that no such payment to the Lessee shall be made while an
AESOP I Operating Lease Event of Default shall have occurred and be
continuing.

16.2.     Reimbursement Obligation by the Lessee. The Lessee shall
forthwith upon demand reimburse the Lessor or the relevant Indemnified Person
for any sum or sums expended with respect to any of the foregoing;
provided, however, that to the extent such amounts constitute
Excluded Payments, such amounts shall be paid only to the AESOP I Segregated
Account; and provided further that, if so requested by the
Lessee, the Lessor or the relevant Indemnified Person shall submit to the
Lessee a statement documenting any such demand for reimbursement or prepayment.
To the extent that the Lessee in fact indemnifies the Lessor or the relevant
Indemnified Person under the indemnity provisions of this Agreement, the Lessee
shall be subrogated to the Lessor’s or the relevant Indemnified Person’s rights
in the affected transaction and shall have a right to determine the settlement
of claims therein. The foregoing indemnity as contained in this Section
16 shall survive the expiration or earlier termination of this Agreement or
any lease of any Vehicle hereunder.

16.3.     Defense of Claims. The Lessor agrees to notify the Lessee of
any claim made against it for which the Lessee may be liable pursuant to this
Section 16 and, if the Lessee requests, to contest or allow the Lessee
to contest such claim. If any AESOP I Operating Lease Event of Default shall
have occurred and be continuing, no contest shall be required, and any contest
which has begun shall not be required to be continued to be pursued, unless
arrangements to secure the payment of the
Lessee’s obligations pursuant to this Section 16 hereunder have
been made and such arrangements are reasonably satisfactory to the Lessor. The
Lessor shall not settle any such claim without the Lessee’s consent, which
consent shall not be unreasonably withheld. Defense of any claim referred to
in this Section 16 for which indemnity may be required shall, at the
option and request of the Indemnified Person, be conducted by the Lessee. The
Lessee will inform the Indemnified Person of any such claim and of the defense
thereof and will provide copies of material documents relating to any such
claim or defense to such Indemnified Person upon request. Such Indemnified
Person may participate in any such defense at its own expense provided such
participation does not interfere with the Lessee’s assertion of such claim or
defense. The Lessee agrees that no Indemnified Person will be liable to the
Lessee for any claim caused directly or indirectly by the inadequacy of any
Vehicle leased hereunder for any purpose or any deficiency or defect therein or
the use or maintenance thereof or any repairs,

20

 

servicing or adjustments thereto
or any delay in providing or failure to provide such repairs, servicing or
adjustments or any interruption or loss of service or use thereof or any loss
of business, all of which shall be the risk and responsibility of the Lessee.
The rights and indemnities of each Indemnified Person hereunder are expressly
made for the benefit of, and will be enforceable by, each Indemnified Person
notwithstanding the fact that such Indemnified Person is either no longer a
party to (or entitled to receive the benefits of) this Agreement, or was not a
party to (or entitled to receive the benefits of) this Agreement at its outset.
Except as otherwise set forth herein, nothing herein shall be deemed to
require the Lessee to indemnify the Lessor for any of the Lessor’s acts or
omissions which constitute gross negligence or willful misconduct. This
general indemnity shall not affect any claims of the type discussed above which
the Lessee may have against the Manufacturer.

17.          ASSIGNMENT.

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

17.2.     Limitations on the Right of the Lessee to Assign this
Agreement. The Lessee agrees that it shall not, without prior written
consent of the Lessor, CRCF and the Trustee and without having satisfied the
Rating Agency Consent Condition, assign this Agreement or any of its rights
hereunder to any other party; provided, however, that the Lessee
may rent the Vehicles leased hereunder under the terms of its normal daily
rental programs and/or sublease such Vehicles to Permitted Sublessees pursuant
to a Sublease. Any purported assignment in violation of this Section
17.2 shall be void and of no force or effect. Nothing contained herein
shall be deemed to restrict the right of the Lessee to acquire or dispose of,
by
purchase, lease, financing, or otherwise, motor vehicles that are not
subject to the provisions of this Agreement.

18.          DEFAULT AND REMEDIES THEREFOR.

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

18.1.1.     there occurs (i) a default in the payment of the portion of
Monthly Base Rent that relates to the Loan Principal Amount, the Special
Default Payments, the Early Termination Payments, Vehicle Purchase Price
or Termination Value upon a Standard Casualty or when a Vehicle becomes
an Ineligible Vehicle or upon a Vehicle Return Default or any
Supplemental Rent (to the extent not included in any of the foregoing)
and the continuance thereof for a period of five (5) Business Days or
(ii) a default and continuance thereof for five (5) Business Days after
notice thereof by the Lessor or the Trustee to the Lessee in the payment
of any amount payable under this Agreement (other than amounts described
in clause (i) above);

21

 

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

18.1.3. the failure, in any material respect, of the Lessee to
maintain, or cause to be maintained, insurance as required in Section
5 or Section 31.3;

18.1.4. the failure of the Lessee to observe or perform any other
covenant, condition, agreement or provision hereof, and such default
continues for more than thirty (30) days after the date written notice
thereof is delivered by the Lessor or the Trustee to the Lessee;

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

18.1.6. an Event of Bankruptcy occurs with respect to the Lessee or
any Permitted Sublessee;

18.1.7. a Loan Event of Default occurs;

18.1.8. a Finance Lease Event of Default or an AESOP II Operating
Lease Event of Default occurs; or

18.1.9. the Pension Benefit Guaranty Corporation or the Internal
Revenue Service shall have filed notice of one or more liens against the
Lessee (unless such lien does not purport to cover the Collateral or any
amount payable under the Leases), and, in the case of notice filed by the
Internal Revenue Service, such notice shall have remained in effect for
more than thirty (30) days unless, prior to the expiration of such
period, the Lessee shall have provided the Lessor with a bond in an
amount at least equal to the amount of such lien or, in the case of any
such lien in an amount less than $1,000,000, the Lessee shall have
established to the reasonable satisfaction of the Lessor that such lien
is being contested in good faith and that adequate reserves have been
established in respect of the claim giving rise to such lien.

18.2. Effect of AESOP I Operating Lease Event of Default or Liquidation
Event of Default. If any AESOP I Operating Lease Event of Default
described in Section 18 or any Liquidation Event of Default shall occur,
(i) the Lessor may terminate the rights of the Lessee to place Vehicle Orders
pursuant to Section 2.1 and to lease additional Vehicles from the
Lessor, and (ii) if CRCF has declared the Loan Note under any Loan Agreement to
be due and payable pursuant to Section 12.2 of such Loan Agreement, (x)
this Agreement shall automatically

-22-

 

terminate and any accrued and unpaid Monthly
Base Rent, Supplemental Rent and all other payments accrued but unpaid under
this Agreement (calculated as if the full amount of interest on such Loan Note
was then due and payable in full) shall, automatically, without further action
by the Lessor or the Trustee, become immediately due and payable and (y) the
Lessee shall, at the request of the Lessor, the Lender or the Trustee, return
or cause to be returned all Vehicles subject to this Agreement (and the
Administrator shall deliver or cause to be delivered to the Trustee the
Certificates of Title relating thereto) to the Lessor in accordance with the
provisions of Section 13.2 hereof.

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

(i)     proceed by appropriate court action or actions, either at law or
in equity, to enforce performance by the Lessee of the applicable
covenants and terms of this Agreement or to recover damages for the
breach hereof calculated in accordance with Section 18.5; and/or

(ii)     by notice in writing to the Lessee, terminate this Agreement in
its entirety and/or the right of possession hereunder of the Lessee of
the Vehicles leased hereunder, and the Lessor may direct delivery by the
Lessee of documents of title to the Vehicles leased hereunder, whereupon
all rights and interests of the Lessee to such Vehicles will cease and
terminate (but the Lessee will remain liable hereunder as herein
provided; provided, however, that its liability will be
calculated in accordance with Section 18.5); and thereupon, the
Lessor or its agents or assignees may peaceably enter upon the premises
of the Lessee or other premises where such Vehicles may be located
(including, without limitation, the premises of any Permitted Sublessee)
and take possession of them and thenceforth hold, possess and enjoy the
same free from any right of the Lessee or its successors or assigns, to
use such Vehicles for any purpose whatsoever, and the Lessor will,
nevertheless, have a right to recover from the Lessee any and all amounts
which under the terms of this Section 18.3 (as limited by
Section 18.5 of this Agreement) as may be then due. The Lessor
will provide the Lessee with written notice of the place and time of the
sale at least five (5) days prior to the proposed sale, which shall be
deemed commercially reasonable, and the Lessee may purchase such
Vehicle(s) at the sale. Each and every power and remedy hereby
specifically given to the Lessor will be in addition to every other power
and remedy hereby specifically given or now or hereafter existing at law,
in equity or in bankruptcy and each and every power and remedy may be
exercised from time to time and simultaneously and as often and in such
order as may be deemed expedient by the Lessor; provided,
however, that the measure of damages recoverable against the
Lessee will in any case be calculated in accordance with Section
18.5. All such powers and remedies will be cumulative, and the
exercise of one will not be deemed a waiver of the right to exercise any
other or others. No delay or omission of the Lessor in the exercise of
any such power or remedy and no renewal or extension of any payments due
hereunder will impair any such power or remedy or will be construed to be
a waiver of any default or any acquiescence therein. Any extension of
time for payment hereunder or other indulgence duly granted to the Lessee
will not otherwise alter or affect

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the Lessor’s rights or the obligations
hereunder of the Lessee. The Lessor’s acceptance of any payment after it
will have become due hereunder will not be deemed to alter or affect the
Lessor’s rights hereunder with respect to any subsequent payments or
defaults therein; and/or

(iii)     proceed by appropriate court action or actions, either at law
or in equity, to enforce performance by any Permitted Sublessee of the
applicable covenants and terms of
the related Sublease or to recover damages or any other amounts
payable under such Sublease; and/or

(iv)     by notice in writing to the Lessee, terminate the Power of
Attorney.

18.4. Rights of Lender and Trustee Upon Liquidation Event of Default,
Limited Liquidation Event of Default and Non-Performance of Certain
Covenants. (i) If a Liquidation Event of Default or a Limited
Liquidation Event of Default shall have occurred and be continuing, the Lender
and the Trustee, to the extent provided in the Indenture, shall have the rights
against the Lessee, and the AESOP I Operating Lease Loan Collateral provided in
the Base Indenture upon a Liquidation Event of Default or a Limited Liquidation
Event of Default, as the case may be, including the right to take possession of
all or a portion of the Vehicles leased hereunder immediately from the Lessee
or a Permitted Sublessee.

(ii)     If the Lessee shall default in the due performance and observance of
any of its obligations under Sections 31.3, 31.4,
31.5(iv), 31.10, 32.3 or 32.4 hereof, and such
default shall continue unremedied for a period of thirty (30) days after notice
thereof shall have been given to the Lessee by the Lessor, the Lender or the
Trustee, the Trustee, as assignee of the Lessor’s rights hereunder, shall have
the ability to exercise all rights, remedies, powers, privileges and claims of
the Lessee or the Intermediary against the Manufacturers under or in connection
with the Manufacturer Programs with respect to (i) Program Vehicles leased
hereunder that the Lessee has determined to turn back to the Manufacturers
under such Manufacturer Programs (excluding Relinquished Vehicles) and (ii)
whether or not the Lessee shall then have determined to turn back such Program
Vehicles, any Program Vehicles leased hereunder for which the applicable
Repurchase Period will end within one week or less.

(iii)     Upon a default in the performance (after giving effect to any grace
periods provided herein) by the Lessee of its obligations hereunder to keep the
Vehicles leased hereunder free of Liens (other than Permitted Liens) and to
maintain the Trustee’s first-priority perfected security interest in the AESOP
I Operating Lease Loan Collateral, the Lessor or the Trustee shall have the
right to take actions reasonably necessary to correct such default with respect
to the subject Vehicles including the execution of UCC financing statements
with respect to Manufacturer Programs and other general intangibles and the
completion of Vehicle Perfection and Documentation Requirements on behalf of
the Lessee.

(iv)     Upon the occurrence of a Liquidation Event of Default or a Limited
Liquidation Event of Default, the Lessee shall return or cause to be returned
any Program Vehicles leased hereunder to the related Manufacturer in accordance
with the instructions of the Lessor. To the extent any Manufacturer fails to
accept any such Program Vehicles under the terms of the applicable Manufacturer
Program, the Lessor shall have the right to otherwise dispose of such Program
Vehicles and to direct the Lessee to dispose of such Program Vehicles in
accordance with its instructions. Upon the occurrence of a Liquidation Event
of Default or a Limited Liquidation Event of Default, the Lessee shall dispose
of any Non-Program Vehicles leased hereunder in accordance with the
instructions of the Lessor. To the extent the Lessee fails to so dispose of
any such Non-Program Vehicles, the Lessor shall have the right to otherwise

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dispose of such Non-Program Vehicles. In addition, following the
occurrence of a Liquidation Event of Default or a Limited Liquidation Event of
Default, the Lessor shall have all of the rights, remedies, powers, privileges
and claims vis-à-vis the Lessee, necessary or desirable to allow (a) the Lender
to exercise the rights, remedies, powers, privileges and claims given to the
Lender pursuant to Section 12.3 of the AESOP I Operating Lease Loan
Agreement, and the Lessee acknowledges that it has hereby granted to the Lessor
all of the rights, remedies, powers, privileges and claims granted by the
Lessor to the Lender pursuant to Article 7 of the AESOP I Operating
Lease Loan Agreement and that, under the circumstances set forth in the AESOP I
Operating Lease Loan Agreement, the Lender may act in lieu of the Lessor in the
exercise of such rights, remedies, powers, privileges and claims and (b) the
Trustee to exercise the rights, remedies, powers, privileges and claims given
to the Trustee pursuant to Sections 3.3 and 9.2 of the Base
Indenture, and the Lessee acknowledges that (x) it has hereby granted to the
Lessor all of the rights, remedies, powers, privileges and claims granted by
the Lender to the Trustee pursuant to Article 3 of the Base Indenture
and that, under certain circumstances set forth in the Base Indenture, the
Trustee may act in lieu of the Lessor in the exercise of such rights, remedies,
powers, privileges and claims and (y) under certain circumstances the Trustee
may act in lieu of the Lessor in the exercise of the rights, remedies, powers,
privileges and claims of the Lessor hereunder.

18.5. Measure of Damages. If an AESOP I Operating Lease Event of
Default, a Limited Liquidation Event of Default or a Liquidation Event of
Default occurs and the Lessor, the Lender or the Trustee exercises the remedies
granted to the Lessor, the Lender or the Trustee under this Article 18,
the amount that the Lessor shall be permitted to recover shall be equal to:

(i)     all Monthly Base Rent, all Supplemental Rent and all other
payments payable under this Agreement (calculated as provided in
Section 18.2); plus

(ii)     any damages and expenses, including reasonable attorneys’ fees
and expenses (but excluding net after-tax losses of federal and state
income tax benefits to which the Lessor would otherwise be entitled as a
result of this Agreement), which the Lessor, the Lender or the Trustee
will have sustained by reason of the AESOP I Operating Lease Event of
Default, Limited Liquidation Event of Default or Liquidation Event of
Default, together with reasonable sums for such attorneys’ fees and such
expenses as will be expended or incurred in the seizure, storage, rental
or sale of the Vehicles leased hereunder or in the enforcement of any
right or privilege hereunder or in any consultation or action in such
connection; plus

(iii)     interest on amounts due and unpaid under this Agreement at the
applicable Lender’s Carrying Cost Interest Rate plus 1.0% from time to
time computed from the date of the AESOP I Operating Lease Event of
Default, Limited Liquidation Event of Default or Liquidation Event of
Default or the date payments were originally due to the Lessor under this
Agreement or from the date of each expenditure by the Lessor, the

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Lender
or the Trustee which is recoverable from the Lessee pursuant to this
Section 18, as applicable, to and including the date payments are
made by the Lessee.

18.6. Vehicle Return Default. If the Lessee fails to comply with
the provisions of (a) Section 13.2 hereof with respect to any Vehicle
leased hereunder or (b) Section 3.1 with respect to returning or causing
to be returned any Program Vehicles leased hereunder to the related
Manufacturer not later than the end of the Maximum Term (each, a “Vehicle
Return Default”), and the Vehicle is not redesignated as a Non-Program
Vehicle in accordance with Section 2.7, then the Lessor at its option
may:

(i)     proceed by appropriate court action or actions, either at law or
equity, to enforce performance by the Lessee of such covenants and terms
of this Agreement or to recover damages for the breach hereof calculated
in accordance with Section 18.5 as it relates to such Vehicle; or

(ii)     by notice in writing to the Lessee following the occurrence of
such Vehicle Return Default, terminate the Agreement with respect to such
Vehicle and/or the right of possession hereunder of the Lessee with
respect to such Vehicle and the Lessor may direct delivery by the Lessee
of documents of title to such Vehicle, whereupon all rights and interests
of the Lessee to such Vehicle will cease and terminate (but the Lessee
will remain liable hereunder as herein provided; provided,
however, that its liability will be calculated in accordance with
Section 18.5 as it relates to such Vehicle); and thereupon the
Lessor or its agents or assignees may peaceably enter upon the premises
of the Lessee or other premises where such Vehicle may be located
(including, without limitation, the premises of any Permitted Sublessee)
and take possession of it and thenceforth hold, possess and enjoy the
same free from any right of the Lessee or its successors or assigns to
use such Vehicle for any purpose whatsoever and the Lessor will
nevertheless have a right to recover from the Lessee any and all amounts
which, under the terms of this Agreement may then be due. The Lessor
will provide the Lessee with written notice of the place and time of the
sale of such Vehicle at least five (5) days prior to the proposed sale,
which sale shall be deemed commercially reasonable and the Lessee may
purchase the Vehicle at such sale; or

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

(iv)     whether or not the Lessor shall have exercised or shall
thereafter exercise any of the rights under the foregoing clauses
(i), (ii) or (iii), demand by written notice to the
Lessee that the Lessee pay to the Lessor immediately, and the Lessee
shall so pay to the Lessor as liquidated damages for loss of a bargain
and not as a penalty, any unpaid Monthly Base Rent due through the
Payment Date with respect to the Related Month

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during which such Vehicle
is rejected by the Manufacturer or otherwise is not returned to the Manufacturer or on the date the
Lessee is required to, but does not, sell, return or otherwise dispose of
such Vehicle pursuant to Section 3.1 or 2.6 hereof, any
Supplemental Rent then accrued and unpaid plus whichever of the following
amounts the Lessor, in its sole discretion shall specify in such notice:

(1)     an amount equal to the excess, if any, of the Termination
Value for such Vehicle over the Market Value of such Vehicle as of
(a) the date such Vehicle (if such Vehicle is a Program Vehicle) is
rejected by a Manufacturer for not meeting its Manufacturer
Program’s Vehicle Turn-In Condition guidelines, or (b) the date the
Lessee is required to, but does not, sell, return or otherwise
dispose of such Vehicle (if such Vehicle is a Non-Program Vehicle)
pursuant to Section 3.1 or 2.6 hereof; or

(2)     an amount equal to the Termination Value for such Vehicle
as of (a) the date such Vehicle is rejected by a Manufacturer for
not meeting its Manufacturer Program’s Vehicle Turn-In Condition
guidelines (if such Vehicle is a Program Vehicle), or (b) the date
the Lessee is required to, but does not, sell, return or otherwise
dispose of such Vehicle (if such Vehicle is a Non-Program Vehicle)
pursuant to Section 3.1 or 2.6 hereof, in which event
(x) the Lessor shall cause title to such Vehicle to be transferred
to the Lessee, (y) the Lessee shall be entitled to any physical
damage insurance proceeds applicable to such Vehicle, and (z) the
Administrator shall request the Trustee to cause its Lien to be
removed from the Certificate of Title for such Vehicle.

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

18.7. Application of Proceeds. The proceeds of any sale or other
disposition pursuant to Section 18.2, 18.3 or 18.6 shall
be applied by the Lessor in its sole discretion as the Lessor deems
appropriate.

19.     MANUFACTURER EVENTS OF DEFAULT. (a) Upon the occurrence of a
Manufacturer Event of Default with respect to any Manufacturer (a
“Defaulting Manufacturer”), the Lessee, on behalf of the Lessor, (i)
shall no longer place Vehicle Orders for additional Program Vehicles from such
Manufacturer and (ii) shall cancel any Vehicle Order with such Defaulting
Manufacturer for any Program
Vehicle with respect to which a VIN has not been assigned as of the date
such Manufacturer Event of Default occurs.

(b)     Upon the occurrence of a Manufacturer Event of Default, the Lessee
agrees to (i) act at the direction of the Lessor, the Lender or the Trustee to
take commercially reasonable action to liquidate the Program Vehicles subject
to a Manufacturer Program with

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respect to which such Manufacturer Event of
Default has occurred or (ii) convert such Program Vehicles to Non-Program
Vehicles in accordance with Section 2.7 hereof and subject to the
limitations set forth therein.

(c)     Upon the occurrence of a Manufacturer Event of Default, except as
provided in Section 13.3, the Lessee shall not be liable for any failure
by the Lessor to recover all or any portion of the Repurchase Price with
respect to any Program Vehicles subject to the Manufacturer Program of the
Defaulting Manufacturer; provided, however, that nothing in this
Section 19 shall be construed to modify, terminate or otherwise affect
the Lessee’s obligations under this Agreement.

20.     [RESERVED]

21.     [RESERVED]

22.     CERTIFICATION OF TRADE OR BUSINESS USE.

The Lessee hereby warrants and certifies, under penalties of perjury, that
it intends to use the Vehicles which are subject to this Agreement, in its
trade or business or for sublease to a Permitted Sublessee pursuant to a
Sublease.

23.     SURVIVAL.

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

24.     [RESERVED]

25.     TITLE.

This is an agreement to lease only and title to Vehicles will at all times
remain in the Lessor’s name or in the name of the Lessor’s Permitted Nominee.
The Lessee will not have any rights or interest in Vehicles whatsoever other
than the right of possession and use as provided by this Agreement.

26.     [RESERVED]

27.     RIGHTS OF LESSOR ASSIGNED.

Notwithstanding anything to the contrary contained in this Agreement, the
Lessee acknowledges that the Lessor has assigned all of its rights under this
Agreement (other than its right to receive Excluded Payments) to CRCF pursuant
to the AESOP I Operating Lease Loan Agreement and CRCF has assigned such rights
to the Trustee pursuant to the Base Indenture. Accordingly, the Lessee agrees
that:

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

(ii)     upon the delivery by the Trustee of any notice to the Lessee
stating that an AESOP I Operating Lease Event of Default, a Limited
Liquidation Event of Default or a Liquidation Event of Default has
occurred, the Lessee will, if so requested by the Trustee, treat the
Trustee or the Trustee’s designee for all purposes (other than with
respect to the right to receive Excluded Payments) as the Lessor
hereunder and in all respects comply with all obligations under this
Agreement that are asserted by the Trustee as the successor to the Lessor
hereunder, irrespective of whether the Lessee has received any such
notice from the Lessor; provided, however, that the Trustee
shall in no event be liable to the Lessee for any action taken by it in
its capacity as successor to the Lessor other than actions that
constitute negligence or willful misconduct;

(iii)     the Lessee acknowledges that pursuant to the AESOP I Operating
Lease Loan Agreement and the Base Indenture the Lessor has irrevocably
authorized and directed the Lessee to, and the Lessee shall, make
payments of Monthly Base Rent and Supplemental Rent hereunder (and any
other payments hereunder) (other than Excluded Payments, which shall be
paid to the AESOP I Segregated Account) directly to the Trustee for
deposit in the Collection Account established by the Trustee for receipt
of such payments pursuant to the Base Indenture and such payments shall
discharge the obligation of the Lessee to the Lessor hereunder to the
extent of such payments. Upon written notice to the Lessee of a sale or
assignment by the Trustee of its right, title and interest in moneys due
under this Agreement to a successor Trustee, the Lessee shall thereafter
make payments of all Monthly Base Rent and Supplemental Rent (and any
other payments hereunder) (other than Excluded Payments, which shall be
paid to the AESOP I Segregated Account) to the party specified in such
notice;

(iv)     upon request made by the Trustee at any time, the Lessee will
take such actions as are requested by the Trustee to assist the Trustee
in maintaining the Trustee’s first-priority perfected security interest
in the Vehicles leased hereunder, the Certificates of Title with respect
thereto and any other portion of the AESOP I Operating Lease Loan
Collateral; and

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(v)     in the event that the Indenture terminates and all obligations
owing under the Indenture have been paid in full, the Lender shall have
all rights under this Agreement previously assigned to the Trustee.

28.     [RESERVED]

29.     MODIFICATION AND SEVERABILITY.

The terms of this Agreement will not be waived, altered, modified,
amended, supplemented or terminated in any manner whatsoever unless (i) the
same shall be in writing and signed and delivered by the Lessor and the Lessee
and consented to in writing by the Lender and the Trustee and (ii) the Rating
Agency Consent Condition shall have been satisfied. If any part of this
Agreement is not valid or enforceable according to law, all other parts will
remain enforceable. The Lessor shall provide prompt written notice to each
Rating Agency of any such waiver, modification or amendment.

30.     CERTAIN REPRESENTATIONS AND WARRANTIES.

The Lessee represents and warrants to the Lessor and the Trustee that as
of the Restatement Effective Date and as of each Series Closing Date:

30.1. Organization; Ownership; Power; Qualification. The Lessee is
(i) a corporation duly organized, validly existing and in good standing under
the laws of the jurisdiction of its incorporation, (ii) has the corporate power
and authority to own its properties and to carry on its business as now being
and hereafter proposed to be conducted, and (iii) is duly qualified, in good
standing and authorized to do business in each jurisdiction in which the
character of its properties or the nature of its businesses requires such
qualification or authorization.

30.2. Authorization; Enforceability. The Lessee has the corporate
power and has taken all necessary corporate action to authorize it to execute,
deliver and perform this Agreement and each of the other Related Documents to
which it is a party in accordance with their respective terms, and to
consummate the transactions contemplated hereby and thereby. This Agreement
has been duly executed and delivered by the Lessee and is, and each of the
other Related Documents to which the Lessee is a party is, a legal, valid and
binding obligation of the Lessee, enforceable in accordance with its terms.

30.3. Compliance. The execution, delivery and performance, in accordance with their
respective terms, by the Lessee of this Agreement and each of the other Related
Documents to which it is a party, and the consummation of the transactions
contemplated hereby and thereby, do not and will not (i) require any consent,
approval, authorization or registration not already obtained or effected, (ii)
violate any applicable law with respect to the Lessee which violation could
result in a Material Adverse Effect, (iii) conflict with, result in a breach
of, or constitute a default under the certificate or articles of incorporation
or by-laws, as amended, of the Lessee, (iv) conflict with, result in a breach
of, or constitute a default under any indenture, agreement, or other instrument
to which the Lessee is a party or by which its properties may be bound which
conflict, breach or default could result in a Material Adverse Effect, or (v)
result in

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or require the creation or imposition of any Lien upon or with
respect to any property now owned or hereafter acquired by the Lessee except
Permitted Liens.

30.4. Financial Information; Financial Condition. All balance
sheets, all statements of operations, of shareholders’ equity and of cash flow,
and other financial data (other than projections) which have been or shall
hereafter be furnished to the Lessor, the Lender or the Trustee for the
purposes of or in connection with this Agreement or the Related Documents have
been and will be prepared in accordance with GAAP applied on a consistent basis
and do and will present fairly the financial condition of the entities involved
as of the dates thereof and the results of their operations for the periods
covered thereby. Such financial data include the following financial
statements and reports which have been furnished to the Lessor and the Trustee
on or prior to the date hereof:

(i)     the audited consolidated financial statements consisting of a
statement of financial position of the Lessee and its Consolidated
Subsidiaries as of December 31, 2003, and the related statements of
operations, stockholder’s equity and cash flows of the Lessee and its
Consolidated Subsidiaries for the three-year period ended December 31,
2003; and

(ii)     the unaudited condensed consolidated financial statements
consisting of a statement of financial position of the Lessee and its
Consolidated Subsidiaries as of March 31, 2004, and the related
statements of operations, stockholder’s equity and cash flows of the
Lessee and its Consolidated Subsidiaries for the three months ended March
31, 2004.

30.5. Litigation. Except as set forth in Schedule 30.5
hereto and except for claims as to which the insurer has admitted coverage in
writing and which are fully covered by insurance, no claims, litigation
(including, without limitation, derivative actions), arbitration, governmental
investigation or proceeding or inquiry is pending or, to the best of the
Lessee’s knowledge, threatened against the Lessee which would, if adversely
determined, have a Material Adverse Effect.

30.6. Liens. The Vehicles, the Sublease Collateral and all other Collateral are free
and clear of all Liens other than (i) Permitted Liens and (ii) Liens in favor
of the Lessor, the Lender or the Trustee. The Trustee has obtained, and will
continue to obtain, for the benefit of the Secured Parties pursuant to the Base
Indenture, a first-priority perfected Lien on all Vehicles leased hereunder
(other than Vehicles titled in the states of Ohio, Oklahoma and Nebraska). The
Lessor has obtained, and will continue to obtain, a first-priority perfected
Lien on all Sublease Collateral. All Vehicle Perfection and Documentation
Requirements with respect to all Vehicles on or after the date hereof have and
will continue to be satisfied.

30.7. Employee Benefit Plans. (a) During the
twelve-consecutive-month period prior to the date hereof and prior to any
Series Closing Date: (i) no steps have been taken by the Lessee or any member
of the Controlled Group, or to the knowledge of the Lessee, by any Person, to
terminate any Pension Plan; and (ii) no contribution failure has occurred with
respect to any Pension Plan maintained by the Lessee or any member of the
Controlled Group sufficient to give rise to a Lien under Section 302(f)(1) of
ERISA in connection with such Pension Plan;

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and (b) no condition exists or
event or transaction has occurred with respect to any Pension Plan which could
reasonably be expected to result in the incurrence by the Lessee or any member
of the Controlled Group of liabilities, fines or penalties in an amount that
could have a Material Adverse Effect.

30.8. Investment Company Act. The Lessee is not an “investment
company” or a company “controlled” by an “investment company”, within the
meaning of the Investment Company Act of 1940, as amended, and the Lessee is
not subject to any other statute which would impair or restrict its ability to
perform its obligations under this Agreement or the other Related Documents,
and neither the entering into nor the performance by the Lessee of this
Agreement violates any provision of the Investment Company Act of 1940, as
amended.

30.9. Regulations T, U and X. The Lessee is not engaged
principally, or as one of its important activities, in the business of
extending credit for the purpose of purchasing or carrying margin stock (within
the meaning of Regulations T, U and X of the Board of Governors of the Federal
Reserve System). None of the Lessee, any of its Affiliates or any Person
acting on their behalf has taken or will take action to cause the execution,
delivery or performance of this Agreement or the Loan Note, the making or
existence of the Loans or the use of proceeds of the Loans to violate
Regulation T, U, or X of the Board of Governors of the Federal Reserve System.

30.10. Records Locations; Jurisdiction of Organization .
Schedule 30.10 lists each of the locations where the Lessee maintains
any records; and Schedule 30.10 also lists the Lessee’s legal name and
the Lessee’s jurisdiction of organization.

30.11. Taxes. The Lessee has filed all tax returns which have been required to be
filed by it (except where the requirement to file such return is subject to a
valid extension or such failure relates to returns which, in the aggregate,
show taxes due in an amount of not more than $500,000), and has paid or
provided adequate reserves for the payment of all taxes shown due on such
returns or required to be paid as a condition to such extension, as well as all
payroll taxes and federal and state withholding taxes, and all assessments
payable by it that have become due, other than those that are payable without
penalty or are being contested in good faith by appropriate proceedings and
with respect to which adequate reserves have been established, and are being
maintained, in accordance with GAAP. As of the date hereof and as of each
Series Closing Date, to the best of the Lessee’s knowledge, there is no
unresolved claim by a taxing authority concerning the Lessee’s tax liability
for any period for which returns have been filed or were due other than those
contested in good faith by appropriate proceedings and with respect to which
adequate reserves have been established and are being maintained in accordance
with GAAP.

30.12. Governmental Authorization. The Lessee has all licenses,
franchises, permits and other governmental authorizations necessary for all
businesses presently carried on by it (including owning and leasing the real
and personal property owned and leased by it), except where failure to obtain
such licenses, franchises, permits and other governmental authorizations would
not have a Material Adverse Effect.

30.13. Compliance with Laws. Except as disclosed in Schedule
30.13 hereto, the Lessee: (i) is not in violation of any law, ordinance,
rule, regulation or order of any

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Governmental Authority applicable to it or its
property, which violation would have a Material Adverse Effect, and no such
violation has been alleged, (ii) has filed in a timely manner all reports,
documents and other materials required to be filed by it with any governmental
bureau, agency or instrumentality (and the information contained in each of
such filings is true, correct and complete in all material respects), except
where failure to make such filings would not have a Material Adverse Effect,
and (iii) has retained all records and documents required to be retained by it
pursuant to any Requirement of Law, except where failure to retain such records
would not have a Material Adverse Effect.

30.14. Eligible Vehicles. Each Vehicle is or will be, as the case
may be, on the Vehicle Operating Lease Commencement Date with respect to such
Vehicle, an Eligible Vehicle.

30.15. Supplemental Documents True and Correct. All information
contained in any Vehicle Order or other Supplemental Document which has been
submitted, or which may hereafter be submitted by the Lessee to the Lessor is,
or will be, true, correct and complete.

30.16. Manufacturer Programs. No Manufacturer Event of Default has occurred and is continuing with
respect to any Manufacturer of a Program Vehicle.

30.17. Absence of Default. The Lessee is in compliance with all of
the provisions of its certificate or articles of incorporation and by-laws and
no event has occurred or failed to occur which has not been remedied or waived,
the occurrence or non-occurrence of which constitutes, or with the passage of
time or giving of notice or both would constitute, (i) an AESOP I Operating
Lease Event of Default or a Potential AESOP I Operating Lease Event of Default
or (ii) a default or event of default by the Lessee under any material
indenture, agreement or other instrument, or any judgment, decree or final
order to which the Lessee is a party or by which the Lessee or any of its
properties may be bound or affected that could result in a Material Adverse
Effect.

30.18. Title to Assets. The Lessee has good, legal and marketable
title to, or a valid leasehold interest in, all of its assets, except to the
extent no Material Adverse Effect could result. Except for financing
statements or other filings with respect to or evidencing Permitted
Encumbrances, no financing statement under the UCC of any state, application
for a Certificate of Title or certificate of ownership, or other filing which
names the Lessee as debtor or which covers or purports to cover any of the
assets of the Lessee is on file in any state or other jurisdiction, and the
Lessee has not signed any such financing statement, application or instrument
authorizing any secured party or creditor of such Person thereunder to file any
such financing statement, application or filing other than with respect to
Permitted Encumbrances and except, in each case, to the extent no Material
Adverse Effect could result.

30.19. Burdensome Provisions. The Lessee is not a party to or
bound by any Contractual Obligation that could have a Material Adverse Effect.

30.20. No Adverse Change. Since December 31, 2003, (x) no material
adverse change in the business, assets, liabilities, financial condition,
results of operations or business prospects of the Lessee has occurred, and (y)
no event has occurred or failed to occur which has

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had or may have, either
alone or in conjunction with all other such events and failures, a Material
Adverse Effect.

30.21. No Adverse Fact. No fact or circumstance is known to the
Lessee, as of the date hereof or as of such Series Closing Date which, either
alone or in conjunction with all other such facts and circumstances, has had or
might in the future have (so far as the Lessee can foresee) a Material Adverse
Effect which has not been set forth or referred to in the financial statements
referred to in Section 30.4 or 31.5 or in a writing specifically
captioned “Disclosure Statement” and delivered to the Lessor prior to such
Series Closing Date. If a fact or circumstance disclosed in such financial
statements or Disclosure Statement, or if an action, suit
or proceeding disclosed to the Lessor, should in the future have a
Material Adverse Effect, such Material Adverse Effect shall be a change or
event subject to Section 30.20 notwithstanding such disclosure.

30.22. Accuracy of Information. All data, certificates, reports,
statements, opinions of counsel, documents and other information furnished to
the Lessor, the Lender or the Trustee by or on behalf of the Lessee pursuant to
any provision of any Related Document, or in connection with or pursuant to any
amendment or modification of, or waiver under, any Related Document, shall, at
the time the same are so furnished, (i) be complete and correct in all material
respects to the extent necessary to give the Lessor, the Lender or the Trustee,
as the case may be, true and accurate knowledge of the subject matter thereof,
(ii) not contain any untrue statement of a material fact, and (iii) not omit to
state a material fact necessary in order to make the statements contained
therein (in light of the circumstances in which they were made) not misleading,
and the furnishing of the same to the Lessor, the Lender or the Trustee, as the
case may be, shall constitute a representation and warranty by the Lessee made
on the date the same are furnished to the Lessor, the Lender or the Trustee, as
the case may be, to the effect specified in clauses (i), (ii) and
(iii).

30.23. Solvency. Both before and after giving effect to the
transactions contemplated by this Agreement and the other Related Documents,
the Lessee is solvent within the meaning of the Bankruptcy Code and the Lessee
is not the subject of any voluntary or involuntary case or proceeding seeking
liquidation, reorganization or other relief with respect to itself or its debts
under any bankruptcy or insolvency law and no Event of Bankruptcy has occurred
with respect to the Lessee.

30.24. Payment Of Capitalized Cost. Prior to the Vehicle Operating
Lease Commencement Date with respect to each Vehicle leased hereunder, the
Capitalized Cost with respect to such Vehicle shall have been paid.

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

31.1. Corporate Existence; Foreign Qualification. Do and cause to
be done at all times all things necessary to (i) maintain and preserve the
corporate existence of the Lessee; (ii)

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be, and ensure that the Lessee is, duly
qualified to do business and in good standing as a foreign corporation in each
jurisdiction where the nature of its business makes such qualification
necessary and the failure to so qualify would have a Material Adverse Effect;
and (iii) comply with all Contractual Obligations and Requirements of Law
binding upon it and its Subsidiaries, except to the extent that the
failure to comply therewith would not, in the aggregate, have a Material
Adverse Effect.

31.2. Books, Records and Inspections. (i) Maintain complete and
accurate books and records with respect to the Vehicles leased under this
Agreement and (ii) permit any Person designated by the Lessor, the Lender or
the Trustee in writing to visit and inspect any of the properties, corporate
books and financial records of the Lessee and its Subsidiaries and to discuss
its affairs, finances and accounts with officers of the Lessee and its
Subsidiaries, agents of the Lessee and with the Lessee’s independent public
accountants, all at such reasonable times and as often as the Lessor, the
Lender or the Trustee may reasonably request.

31.3. Insurance. Obtain and maintain with respect to all Vehicles
that are subject to this Agreement (a) vehicle liability insurance to the full
extent required by law and in any event not less than $500,000 per Person and
$1,000,000 per occurrence, (b) property damage insurance with a limit of
$1,000,000 per occurrence, and (c) excess coverage public liability insurance
with a limit of not less than $50,000,000 or the limit maintained from time to
time by the Lessee at any time hereafter, whichever is greater, with respect to
all passenger cars and vans comprising the Lessee’s rental fleet. The Lessor
acknowledges and agrees that the Lessee may, to the extent permitted by
applicable law, self-insure for the first $1,000,000 per occurrence, or a
greater amount up to a maximum of $3,000,000, with the consent of each
Enhancement Provider, per occurrence, of vehicle liability and property damage
which is otherwise required to be insured hereunder. All such policies shall
be from financially sound and reputable insurers, shall name the Lender, the
Lessor and the Trustee as additional insured parties and, in the case of
catastrophic physical damage insurance on such Vehicles, shall name the Trustee
as loss payee as its interest may appear and will provide that the Lender, the
Lessor and the Trustee shall receive at least ten (10) days’ prior written
notice of cancellation of such policies. The Lessee will notify promptly the
Lender, the Lessor and the Trustee of any curtailment or cancellation of the
Lessee’s right to self-insure in any jurisdiction.

31.4. Manufacturer Programs. Turn in (or cause to be turned in)
the Program Vehicles leased hereunder to the relevant Manufacturer within the
Repurchase Period therefor (unless the Lessee purchases such Program Vehicle
pursuant to the terms hereof or sells such Program Vehicle prior to the end of
the Repurchase Period therefor and receives sales proceeds thereof in cash in
an amount equal to or greater than the repurchase price under such Manufacturer
Program); and comply with all of its obligations under each Manufacturer
Program and the Master Exchange Agreement.

31.5. Reporting Requirements. Furnish, or cause to be furnished to
the Lessor, the Lender and the Trustee and, in the case of item (iv) below, to
each Rating Agency:

(i)     Audit Report. As soon as available and in any event
within one hundred twenty (120) days after the end of each fiscal year of
the Lessee, (a) consolidated financial statements consisting of a
statement of financial position of the Lessee and its Consolidated
Subsidiaries as of the end of such fiscal year and a statement of

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operations, stockholders’ equity and cash flows of the Lessee and its
Consolidated Subsidiaries for such fiscal year, setting forth in
comparative form the corresponding figures for the preceding fiscal year,
certified by and containing an opinion, unqualified as to scope, of
independent certified public accountants of recognized standing selected
by the Lessee and acceptable to the Lessor, the Lender and the Trustee,
accompanied by (b) a letter from such accountants addressed to the
Lessor, the Lender and the Trustee stating that, in the course of their
annual audit of the books and records of the Lessee, no Potential AESOP I
Operating Lease Event of Default or AESOP I Operating Lease Event of
Default has come to their attention which was continuing at the close of
such fiscal year or on the date of their letter, or, if such an event has
come to the attention of such accountants and was continuing at the close
of such fiscal year or on the date of their letter, the nature of such
event, it being understood that such accountants shall have no liability
to the Lessor or the Trustee by reason of the failure of such accountants
to obtain knowledge of the occurrence or continuance of such an AESOP I
Operating Lease Event of Default or Potential AESOP I Operating Lease
Event of Default;

(ii)     Quarterly Statements. As soon as available and in any
event within forty-five (45) days after the end of each of the first
three quarters of each fiscal year of the Lessee, (a) financial
statements consisting of a consolidated statement of financial position
of the Lessee and its Consolidated Subsidiaries as of the end of such
quarter and a statement of operations, stockholders’ equity and cash
flows of the Lessee and its Consolidated Subsidiaries for each such
quarter, setting forth in comparative form the corresponding figures for
the corresponding periods of the preceding fiscal year, all in reasonable
detail and certified (subject to year-end audit adjustments) by a senior
financial officer of the Lessee as having been prepared in accordance
with GAAP applied on a consistent basis, accompanied by (b) a letter from
such officer addressed to the Lessor, the Lender and the Trustee stating
that no Potential AESOP I Operating Lease Event of Default or AESOP I
Operating Lease Event of Default has come to his attention which was
continuing at the end of such quarter or on the date of his letter, or,
if such an event has come to his attention and was continuing at the end
of such quarter or on the date of his letter, indicating the nature of
such event and the action which the Lessee proposes to take with respect
thereto;

(iii)     Amortization Events and AESOP I Operating Lease Events of
Default. As soon as possible but in any event within two (2)
Business Days after the occurrence of any Amortization Event, Potential
Amortization Event, AESOP I Operating Lease Event of Default or Potential
AESOP I Operating Lease Event of Default, a written statement of an
Authorized Officer describing such event and the action that the Lessee
proposes to take with respect thereto;

(iv)     Manufacturers. Promptly after obtaining actual
knowledge thereof, notice of any Manufacturer Event of Default or
termination or replacement of a Manufacturer Program;

(v)     Interim Financial Statements. Promptly following the
Lessee’s receipt thereof, copies of all other financial reports submitted
to the Lessee by independent

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public accountants relating to any annual or
interim audit of the books of the Lessee, or opinion as to the proper
book value of the assets of the Lessee;

(vi)     Reports. Promptly, from time to time, such information
with respect to the Subleases, the Vehicles leased hereunder and payments
made and owing hereunder as the Lessor may require to satisfy its
reporting obligations to the Lender pursuant to Section 9.5 of the AESOP
I Operating Lease Loan Agreement; and

(vii)     Other. Promptly, from time to time, such other
information, documents, or reports respecting the Vehicles leased
hereunder or the condition or operations, financial or otherwise, of the
Lessee as the Lessor, the Lender or the Trustee may from time to time
reasonably request in order to protect the interests of the Lessor, the
Lender or the Trustee under or as contemplated by this Agreement or any
other Related Document.

31.6. Payment of Taxes; Removal of Liens. Pay when due all taxes,
assessments, fees and governmental charges of any kind whatsoever that may be
at any time lawfully assessed or levied against or with respect to the Lessee,
or its property and assets or any interest thereon. Notwithstanding the
previous sentence, but subject in any case to the other requirements hereof and
of the Related Documents, the Lessee shall not be required to pay any tax,
charge, assessment or imposition nor to comply with any law, ordinance, rule,
order, regulation or requirement so long as the Lessee shall contest, in good
faith, the amount or validity thereof, in an appropriate manner or by
appropriate proceedings. Each such contest shall be promptly prosecuted to
final conclusion (subject to the right of the Lessee to settle any such
contest).

31.7. Business. The Lessee will engage only in businesses in
substantially the same or related fields as the businesses conducted by it on
the date hereof and such other lines of business, which, in the aggregate, do
not constitute a material part of the operations of the Lessee.

31.8. Maintenance of Separate Existence. The Lessee acknowledges
its receipt of a copy of that certain opinion letter issued by White & Case LLP
dated the date hereof and addressing the issue of substantive consolidation as
it may relate to the Lessee, each Permitted Sublessee, the Lessor, Original
AESOP, AESOP Leasing II and CRCF. The Lessee hereby agrees to maintain in
place all policies and procedures, and take and continue to take all action,
described in the factual assumptions set forth in such opinion letter and
relating to such Person.

31.9. Trustee as Lienholder. Concurrently with each leasing of a Vehicle under this Agreement, the
Administrator shall indicate on its computer records that the Trustee, as
assignee of the Lender, is the holder of a Lien on such Vehicle pursuant to the
terms of the Base Indenture.

31.10. Maintenance of the Vehicles. Maintain and cause to be
maintained in good repair, working order, and condition all of the Vehicles
leased hereunder in accordance with its ordinary business practices with
respect to all other vehicles owned by it, except to the extent that any such
failure to comply with such requirements does not, in the aggregate, materially
adversely affect the interests of the Lessor under this Agreement, the
interests of the Lender under the AESOP I Operating Lease Loan Agreement or the
interests of the Secured

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Parties under the Indenture or the likelihood of
repayment of the Loans. From time to time the Lessee will make or cause to be
made all appropriate repairs, renewals, and replacements with respect to the
Vehicles.

31.11. Enhancement. If the Enhancement with respect to any Series
of Notes is provided by a letter of credit and (i) the short-term debt or
deposit rating of the Enhancement Provider of such letter of credit shall be
downgraded below the then-current rating of such Series of Notes by the Rating
Agencies with respect to such Series of Notes or (ii) such Enhancement Provider
shall notify the Lessee that its compliance with any of its obligations under
such letter of credit would be unlawful, use its best efforts to obtain a
successor institution to act as Enhancement Provider or, in the alternative, to
otherwise credit enhance the payments to be made under this Agreement by the
Lessee, subject to the satisfaction of the Rating Agency Confirmation Condition
and any other requirements set forth in the Related Documents.

31.12. Manufacturer Payments. Cause each Manufacturer and each
auction dealer with respect to such Manufacturer to make all payments made by
it under the Manufacturer Programs with respect to Vehicles leased hereunder
directly to the Collection Account or a Joint Collection Account. Any such
payments from Manufacturers or related auction dealers received directly by the
Lessee, will be, within three (3) Business Days of receipt, deposited into the
Collection Account or a Joint Collection Account, as applicable.

31.13. Accounting Methods; Financial Records. Maintain, and cause
each of its material Subsidiaries to maintain, a system of accounting and keep,
and cause each of its material Subsidiaries to keep, such records and books of
account (which shall be true and complete) as may be required or necessary to
permit the preparation of financial statements in accordance with GAAP applied
on a consistent basis.

31.14. Disclosure to Auditors. Disclose, and cause each of its
material Subsidiaries to disclose, to its independent certified public
accountants in a timely manner all loss contingencies of a type requiring
disclosure to auditors under accounting standards promulgated by the Financial
Accounting Standards Board.

31.15. Disposal of Non-Program Vehicles. Dispose of the
Non-Program Vehicles leased hereunder in accordance with Section 2.6
(unless the Lessee purchases such Non-Program Vehicle in accordance with the
terms hereof).

31.16. Security Interest; Additional Sublease. Do and cause to be
done at all times all things necessary, including without limitation filing UCC
financing statements and continuation statements, to maintain and preserve the
Lessor’s first-priority perfected security interest in the Sublease Collateral.
The Lessee shall maintain the effectiveness of each of the financing
statements filed in accordance with Section 2. The Lessee shall notify
the Lessor and each Rating Agency of the execution of any additional Sublease,
and the Lessee shall do and cause to be done all things necessary to perfect
the security interest in the additional Sublease Collateral with respect to
such Sublease.

32.     CERTAIN NEGATIVE COVENANTS. Until the expiration or
termination of this Agreement and thereafter until the obligations of the
Lessee under this

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Agreement and the Related Documents are satisfied in full,
the Lessee covenants and agrees that, unless at any time the Lessor and the
Trustee shall otherwise expressly consent in writing, it will not:

32.1. Mergers, Consolidations. Merge or consolidate with any
Person, except that, if after giving effect thereto, no Potential AESOP I
Operating Lease Event of Default or AESOP I Operating Lease Event of Default
would exist, this Section 32.1 shall not apply to any merger or
consolidation; provided that the Lessee is the surviving corporation of
such merger or consolidation.

32.2. Other Agreements. Enter into any agreement containing any
provision which would be violated or breached by the performance of its
obligations hereunder or under any instrument or document delivered or to be
delivered by it hereunder or in connection herewith.

32.3. Liens. Create or permit to exist any Lien with respect to
any Vehicle leased hereunder now or hereafter existing or acquired, except for
Permitted Liens.

32.4. Use of Vehicles. Use or allow the Vehicles to be used (i) in any manner that would make
such Vehicles that are Program Vehicles ineligible for repurchase under an
Eligible Manufacturer Program, (ii) for any illegal purposes or (iii) in any
manner that would subject the Vehicles to confiscation.

32.5. Termination of Agreement. Allow this Agreement to terminate
prior to the termination of each other Lease.

32.6. Sublease Amendment. The Lessee shall not amend, modify,
supplement or waive any provision, or permit the amendment, modification,
supplementation or waiver of any provision, of a Sublease without (x) the prior
written consent of the Lessor and the Trustee and (y) satisfaction of the
Rating Agency Consent Condition.

33.     ADMINISTRATOR ACTING AS AGENT OF THE LESSOR. The parties to
this Agreement acknowledge and agree that CCRG shall act as Administrator and,
in such capacity, as the agent for the Lessor, for purposes of performing
certain duties of the Lessor under this Agreement and the Related Documents.
As compensation for the Administrator’s performance of such duties, the Lessor
shall pay to the Administrator on each Payment Date (i) the portion of the
Monthly Administration Fee payable by the Lessor pursuant to the Administration
Agreement and (ii) the reasonable costs and expenses of the Administrator
incurred by it as a result of arranging for the sale of Vehicles returned to
the Lessor in accordance with Section 2.6(b) or as a result of a Vehicle
Return Default and sold to third parties; provided, however, that
such costs and expenses shall only be payable to the Administrator to the
extent of any excess of the sale price received by the Lessor for any such
Vehicle over the Termination Value thereof.

34.     NO PETITION. Each of the Lessee and the Administrator hereby
covenants and agrees that, prior to the date which is one year and one day
after the payment in full of all of the Notes, it will not institute against,
or join any other Person in instituting against, the Lessor, Original AESOP,
AESOP Leasing II, the Intermediary, Quartx, PVHC or CRCF any

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bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings or other
similar proceeding under the laws of the United States or any state of the
United States. In the event that the Lessee or the Administrator takes action
in violation of this Section 34, the Lessor agrees, for the benefit of
the Secured Parties, that it shall file an answer with the bankruptcy court or
otherwise properly contest the filing of such a petition by the Lessee or the
Administrator against the Lessor, Original AESOP, AESOP Leasing II, the
Intermediary, Quartx, PVHC or CRCF or the commencement of such action and raise
the defense that the Lessee or the Administrator has agreed in writing not to
take such action and should be estopped and precluded therefrom and such other
defenses, if any, as its counsel advises that it may assert. The provisions of
this Section 34 shall survive the termination of this Agreement.

35.     CERTAIN AGREEMENTS RESPECTING THE MASTER EXCHANGE AGREEMENT. Without limiting any other provision hereof, the Lessee and the
Administrator hereby covenant and agree that they will cooperate with the
Lessor in order to effect transfers of Relinquished Vehicles to the
Intermediary and acquisitions of Replacement Vehicles by the Intermediary in
accordance with the terms of the Master Exchange Agreement, including by giving
such notices and providing such information to the Lessor or to other persons
as the Lessor may from time to time reasonably request.

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

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

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38.     JURY TRIAL. EACH PARTY HERETO HEREBY EXPRESSLY WAIVES ANY
RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY
RIGHTS UNDER THIS AGREEMENT OR ANY OTHER RELATED DOCUMENT TO WHICH IT IS A
PARTY, OR UNDER ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR
WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION THEREWITH OR ARISING FROM
ANY RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT OR ANY RELATED TRANSACTION, AND AGREES THAT
ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A
JURY.

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

	 	 	 	 	 	 	 
	 	 	TRUSTEE:	 	The Bank of New York
	 	 	 	 	c/o BNY Midwest Trust Company
	 	 	 	 	2 North La Salle Street
	 	 	 	 	10th Floor
	 	 	 	 	Chicago, Illinois 60602
	

	 	 	 	Attention:
	 	Corporate Trust Officer
	

	 	 	 	Telephone:
	 	(312) 827-8569
	

	 	 	 	Fax:
	 	(312) 869-8562
	 
	 	 	 	 	 	 
	 	 	LENDER:	 	Cendant Rental Car Funding (AESOP) LLC
	 	 	 	 	c/o Lord Securities Corporation
	 	 	 	 	48 Wall Street
	 	 	 	 	New York, New York 10005
	

	 	 	 	Attention:
	 	Benjamin B. Abedine
	

	 	 	 	Telephone:
	 	(212) 346-9019
	

	 	 	 	Fax:
	 	(212) 346-9012
	 
	 	 	 	 	 	 
	 	 	LESSOR:	 	AESOP Leasing L.P.
	 	 	 	 	c/o Lord Securities Corporation
	 	 	 	 	48 Wall Street
	 	 	 	 	New York, New York 10005
	

	 	 	 	Attention:
	 	Benjamin B. Abedine
	

	 	 	 	Telephone:
	 	(212) 346-9019
	

	 	 	 	Fax:
	 	(212) 346-9012

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	 	 	LESSEE:	 	Cendant Car Rental Group, Inc.
	 	 	 	 	6 Sylvan Way
	 	 	 	 	Parsippany, NJ 07054
	

	 	 	 	Attention:
	 	Treasurer
	

	 	 	 	Telephone:
	 	(973) 496-5000
	

	 	 	 	Fax:
	 	(973) 496-5852

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

40.     [RESERVED]

41.     TITLE TO MANUFACTURER PROGRAMS IN LESSOR.

The Lessee, by its execution hereof, acknowledges and agrees that, as
between the Lessor and the Lessee, (i) the Lessor is the sole owner and holder
of all right, title and interest in and to the Manufacturer Programs as they
relate to the Vehicles leased hereunder, (ii) in accordance with the Assignment
Agreements, all of the Lessor’s right, title and interest in and to such
Manufacturer Programs shall be assigned to the Trustee (except as expressly
provided otherwise in any Related Document with respect to Relinquished
Vehicles and any related Relinquished Vehicle Property), and (iii) the Lessee
does not have any right, title or interest in any Manufacturer Program as it
relates to the Vehicles leased hereunder. To confirm the foregoing, the
Lessee, by its execution hereof, hereby assigns and transfers to the Lessor any
rights that the Lessee may have in respect of any Manufacturer Programs.

42.     HEADINGS.

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

43.     EXECUTION IN COUNTERPARTS.

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

44.     EFFECTIVE DATE.

This Agreement shall become effective on the Restatement Effective Date
when all parties hereto have executed the signature pages attached hereto.
Except to the extent amended hereby, the Prior AESOP I Operating Lease is in
all respects ratified and confirmed and in full force and effect. From and
after the Restatement Effective Date all references in the Related

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Documents to
the AESOP I Operating Lease shall mean such agreement as amended and restated
hereby, unless the context otherwise requires.

45.     NO RECOURSE.

The obligations of AESOP Leasing under this Agreement are solely the
obligations of AESOP Leasing. No recourse shall be had for the payment of any
obligation or claim arising out of or based upon this Agreement against any
shareholder, partner, employee, officer or director of AESOP Leasing.

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

	 	 	 	 	 
	 	LESSOR:

AESOP LEASING L.P.

 	 
	 	By:  	AESOP LEASING CORP.,
 	 
	 	 	its general partner 	 
	 
	 	 	 
	 	By:  	                     /s/ Lori Gebron
 	 
	 	 	Name:  	Lori Gebron 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	LESSEE AND ADMINISTRATOR:

CENDANT CAR RENTAL GROUP, INC.

 	 
	 	By:  	/s/ Lynn Finkel
 	 
	 	 	Name:  	Lynn Finkel 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	Acknowledged and Consented

LENDER:

CENDANT RENTAL CAR FUNDING (AESOP) LLC

 	 
	 	By:  	/s/ Orlando Figueroa
 	 
	 	 	Name:  	Orlando Figueroa 	 
	 	 	Title:  	President 	 
	 

	 	 	 	 	 
	 	TRUSTEE:

THE BANK OF NEW YORK, as Trustee

 	 
	 	By:  	/s/ Mary L. Collier
 	 
	 	 	Name:  	Mary L. Collier 	 
	 	 	Title:  	Agent 	 

 

 

	 	 	 	 	 
	 	CENDANT CAR RENTAL GROUP, INC.

 	 
	 	By:  	/s/ Lynn Finkel
 	 
	 	 	Name:  	Lynn Finkel 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	GUARANTOR (under Prior AESOP I Operating Lease)

CENDANT CAR RENTAL GROUP, INC.

 	 
	 	By:  	/s/ Lynn Finkel
 	 
	 	 	Name:  	Lynn Finkel 	 
	 	 	Title:  	Vice President 	 
	 

Counterpart no. ___ of ten (10) serially numbered manually executed
counterparts. To the extent if any that this document constitutes chattel paper
under the uniform commercial code, no security interest in this document may be
created through the transfer and possession of any counterpart other than
counterpart no. 1.

 

 

SCHEDULE 30.5

Litigation

[NONE]

 

 

SCHEDULE 30.10

Jurisdiction of Organization; Records and Business Locations

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Jurisdiction of	 	 	Records	 	 	States in which	 
	 	Lessee	 	 	Organization	 	 	Locations	 	 	Conducts Business	 
	 	Cendant Car Rental

Group, Inc.

	 	 	Delaware
	 	 	300 Centre Pointe Dr.

Virginia Beach, VA

23462

1 Campus Drive

Parsippany, NJ 07054
	 	 	AZ, AR, CA, CO, CT,
DE, DC, FL, GA, HI,
ID, IL, IN, KS, KY,
LA, ME, MD, MA, MI,
MN, MS, MO, MT, NE,
NV, NJ, NM, NY, NC,
OH, OK, OR, PA, RI,
SC, TN, TX, UT, VT,
VA, WA, WV, WI and WY	 
	 

 

 

SCHEDULE 30.13

Compliance with Law

[NONE]

 

 

ATTACHMENT A

Vehicle Acquisition Schedule and Related Information

	 	 	 
	1.

	 	Principal amount of Loan financing the Vehicle
	2.

	 	Date of Loan financing the Vehicle
	3.

	 	Vehicle Operating Lease Commencement Date
	4.

	 	Vehicle Identification Number (VIN)
	5.

	 	Summary of Vehicles being financed (including, for Vehicles subject to
the GM Repurchase Program, the Designated Period for such Vehicles)
	6.

	 	Program or Non-Program Vehicle
	7.

	 	Capitalized Cost (if applicable)
	8.

	 	Net Book Value (if applicable)

 

 

ATTACHMENT B

Form of Power of Attorney

KNOW ALL MEN BY THESE PRESENTS, that AESOP LEASING L.P. does hereby make,
constitute and appoint Cendant Car Rental Group, Inc. (“CCRG”) its true
and lawful Attorney-in-Fact for it and in its name, stead and behalf, (i) to
execute any and all documents pertaining to the titling of motor vehicles in
the name of AESOP LEASING L.P., PV HOLDING CORP. or QUARTX FLEET MANAGEMENT
INC., (ii) the noting of the lien of The Bank of New York, as trustee (in such
capacity, the “Trustee”), as the first lienholder on certificates of
title, (iii) the licensing and registration of motor vehicles, (iv) designating
c/o CCRG as the mailing address of the Trustee for all documentation relating
to the title and registration of such motor vehicles, (v) applying for
duplicate certificates of title indicating the lien of the Trustee where
original certificates of title have been lost or destroyed and (vi) upon the
sale of any such motor vehicle in accordance with the terms and conditions of
the Second Amended and Restated Master Motor Vehicle Operating Lease Agreement,
dated as of June 3, 2004, between AESOP Leasing L.P. and CCRG as Lessee,
releasing the lien of the Trustee on such motor vehicle by executing any
documents required in connection therewith. This power is limited to the
foregoing and specifically does not authorize the creation of any liens or
encumbrances on any of said motor vehicles.

The powers and authority granted hereunder shall, be effective as of the
[___] day of May, 2004 and unless sooner terminated, revoked or extended, cease
eight (8) years from such date.

 

 

ATTACHMENT B

Page 2

IN WITNESS WHEREOF, AESOP LEASING L.P. has caused this instrument to be
executed on its behalf by its duly authorized officer this    day of May,
2004.

	 	 	 	 	 
	 	AESOP LEASING L.P.

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 

State of _______________)

County of _____________)

Subscribed and sworn before me, a notary public, in and for said county
and state, this ____ day of _______, 20___.

Notary Public

My Commission Expires:___________________________SERIES 2004-2 SUPPLEMENT TO THE BASE INDENTURE

 

EXECUTION COPY

Exhibit 10.10

AESOP FUNDING II L.L.C.,

as Issuer

and

THE BANK OF NEW YORK,

as Trustee and Series 2004-2 Agent

SERIES 2004-2 SUPPLEMENT

dated as of February 18, 2004

to

AMENDED AND RESTATED BASE INDENTURE

dated as of July 30, 1997

 

 

SERIES 2004-2 SUPPLEMENT, dated as of February 18, 2004 (this “Supplement”),
among AESOP FUNDING II L.L.C., a special purpose limited
liability company established under the laws of Delaware (“AFC-II”),
THE BANK OF NEW YORK, a New York banking corporation, as successor in interest
to the corporate trust administration of Harris Trust and Savings Bank, as
trustee (together with its successors in trust thereunder as provided in the
Base Indenture referred to below, the “Trustee”), and THE BANK OF NEW
YORK, a New York banking corporation, as agent for the benefit of the Series
2004-2 Noteholders, each Series 2004-2 Interest Rate Swap Counterparty and the
Surety Provider (the “Series 2004-2 Agent”), to the Amended and
Restated Base Indenture, dated as of July 30, 1997, between AFC-II and the
Trustee (as amended, modified or supplemented from time to time, exclusive of
Supplements creating a new Series of Notes, the “Base Indenture”).

PRELIMINARY STATEMENT

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

NOW, THEREFORE, the parties hereto agree as follows:

DESIGNATION

There is hereby created a Series of Notes of three classes to be issued
pursuant to the Base Indenture and this Supplement, and such Series of Notes
shall be designated generally as Series 2004-2 Rental Car Asset Backed Notes.

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

The proceeds from the sale of the Series 2004-2 Notes shall be deposited
in the Collection Account and shall be paid to AFC-II and used to make Loans
under the Loan Agreements to the extent that the Borrowers have requested Loans
thereunder and Eligible Vehicles are available for acquisition or refinancing
thereunder on the date hereof. Any such portion of proceeds not so used to
make Loans shall be deemed to be Principal Collections.

The Series 2004-2 Notes are a non-Segregated Series of Notes (as more
fully described in the Base Indenture). Accordingly, all references in this
Supplement to “all” Series of Notes (and all references in this Supplement to
terms defined in the Base Indenture that
contain references to “all” Series of Notes) shall refer to all Series of
Notes other than Segregated Series of Notes.

 

 

ARTICLE I

DEFINITIONS

(a)       All capitalized terms not otherwise defined herein are defined in the
Definitions List attached to the Base Indenture as Schedule I thereto. All
Article, Section or Subsection references herein shall refer to Articles,
Sections or Subsections of this Supplement, except as otherwise provided
herein. Unless otherwise stated herein, as the context otherwise requires or
if such term is otherwise defined in the Base Indenture, each capitalized term
used or defined herein shall relate only to the Series 2004-2 Notes and not to
any other Series of Notes issued by AFC-II.

(b)       The following words and phrases shall have the following meanings with
respect to the Series 2004-2 Notes and the definitions of such terms are
applicable to the singular as well as the plural form of such terms and to the
masculine as well as the feminine and neuter genders of such terms:

“AGH” means Avis Group Holdings, Inc., a Delaware corporation.

“Authorized Newspaper” means the Luxemburger Wort or other daily
newspaper of general circulation in Luxembourg (or if publication is not
practical in Luxembourg, in Europe).

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

“Certificate of Lease Deficit Demand” means a certificate in the
form of Annex A to the Series 2004-2 Letters of Credit.

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

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

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

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

“Class A-1 Carryover Controlled Amortization Amount” means, with
respect to any Related Month during the Three-Year Notes Controlled
Amortization Period, the amount, if any, by which the portion of the Monthly
Total Principal Allocation paid to the Class A-1 Noteholders pursuant to
Section 2.5(e) for the previous Related Month was less than the Class A-1
Controlled Distribution Amount for the previous Related Month; provided,
however, that for

-2-

 

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

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

“Class A-1 Controlled Distribution Amount” means, with respect to
any Related Month during the Three-Year Notes Controlled Amortization Period,
an amount equal to the sum of the Class A-1 Controlled Amortization Amount and
any Class A-1 Carryover Controlled Amortization Amount for such Related Month.

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

“Class A-1 Invested Amount” means, when used with respect to any
date, an amount equal to the Class A-1 Outstanding Principal Amount plus
the sum of (a) the amount of any principal payments made to the Class A-1
Noteholders on or prior to such date with the proceeds of a demand on the
Surety Bond and (b) the amount of any principal payments made to Class A-1
Noteholders that have been rescinded or otherwise returned by the Class A-1
Noteholders for any reason.

“Class A-1 Monthly Interest” means, with respect to (i) the
initial Series 2004-2 Interest Period, an amount equal to $245,333.33 and (ii)
any other Series 2004-2 Interest Period, an amount equal to the product of (A)
one-twelfth of the Class A-1 Note Rate and (B) the Class A-1 Invested Amount on
the first day of such Series 2004-2 Interest Period, after giving effect to any
principal payments made on such date.

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

“Class A-1 Note Rate” means 2.76% per annum.

“Class A-1 Notes” means any one of the Series 2004-2 2.76% Rental
Car Asset Backed Notes, Class A-1, executed by AFC-II and authenticated by or
on behalf of the Trustee, substantially in the form of Exhibit A-1-1,
Exhibit A-1-2 or Exhibit A-1-3. Definitive Class A-1 Notes
shall have such insertions and deletions as are necessary to give effect to the
provisions of Section 2.18 of the Base Indenture.

“Class A-1 Outstanding Principal Amount” means, when used with
respect to any date, an amount equal to (a) the Class A-1 Initial Invested
Amount minus (b) the amount of principal payments made to Class A-1
Noteholders on or prior to such date.

“Class A-2 Carryover Controlled Amortization Amount” means, with
respect to any Related Month during the Three-Year Notes Controlled
Amortization Period, the amount, if any, by which the portion of the Monthly
Total Principal Allocation paid to the Class A-2

-3-

 

Noteholders pursuant to
Section 2.5(e) for the previous Related Month was less than the Class A-2
Controlled Distribution Amount for the previous Related Month; provided,
however, that for the first Related Month in the Three-Year
Notes Controlled Amortization Period, the Class A-2 Carryover Controlled
Amortization Amount shall be zero.

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

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

“Class A-2 Initial Invested Amount” means the aggregate initial
principal amount of the Class A-2 Notes, which is $100,000,000.

“Class A-2 Invested Amount” means, when used with respect to any
date, an amount equal to the Class A-2 Outstanding Principal Amount plus
the sum of (a) the amount of any principal payments made to the Class A-2
Noteholders on or prior to such date with the proceeds of a demand on the
Surety Bond and (b) the amount of any principal payments made to Class A-2
Noteholders that have been rescinded or otherwise returned by the Class A-2
Noteholders for any reason.

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

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

“Class A-2 Note Rate” means, for (i) the initial Series 2004-2
Interest Period, 1.21375% per annum and (ii) any other Series 2004-2 Interest
Period, the sum of 0.12% plus LIBOR for such Series 2004-2 Interest
Period.

“Class A-2 Notes” means any one of the Series 2004-2 Floating
Rate Rental Car Asset Backed Notes, Class A-2, executed by AFC-II and
authenticated by or on behalf of the Trustee, substantially in the form of 
Exhibit A-2-1, Exhibit A-2-2 or Exhibit A-2-3.
Definitive Class A-2 Notes shall have such insertions and deletions as are
necessary to give effect to the provisions of Section 2.18 of the Base
Indenture.

“Class A-2 Outstanding Principal Amount” means, when used with
respect to any date, an amount equal to (a) the Class A-2 Initial Invested
Amount minus (b) the amount of principal payments made to Class A-2
Noteholders on or prior to such date.

-4-

 

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

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

“Class A-3 Controlled Amortization Period” means the period
commencing at the opening of business on October 1, 2008 (or, if such day is
not a Business Day, the Business Day immediately preceding such day) and
continuing to the earliest of (i) the commencement of the Series 2004-2 Rapid
Amortization Period, (ii) the date on which the Class A-3 Notes are fully paid
and (iii) the termination of the Indenture.

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

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

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

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

“Class A-3 Invested Amount” means, when used with respect to any
date, an amount equal to the Class A-3 Outstanding Principal Amount plus
 the sum of (a) the amount of any principal payments made to the Class A-3
Noteholders on or prior to such date with the proceeds of a demand on the
Surety Bond and (b) the amount of any principal payments made to Class A-3
Noteholders that have been rescinded or otherwise returned by the Class A-3
Noteholders for any reason.

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

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

-5-

 

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

“Class A-3 Notes” means any one of the Series 2004-2 Floating
Rate Rental Car Asset Backed Notes, Class A-3, executed by AFC-II and
authenticated by or on behalf of the Trustee, substantially in the form of 
Exhibit A-3-1, Exhibit A-3-2 or Exhibit A-3-3.
Definitive Class A-3 Notes shall have such insertions and deletions as are
necessary to give effect to the provisions of Section 2.18 of the Base
Indenture.

“Class A-3 Outstanding Principal Amount” means, when used with
respect to any date, an amount equal to (a) the Class A-3 Initial Invested
Amount minus (b) the amount of principal payments made to Class A-3
Noteholders on or prior to such date.

“Clearstream” is defined in Section 5.2.

“Consent” is defined in Article IV.

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

“Demand Note Issuer” means each issuer of a Series 2004-2 Demand
Note.

“Designated Amounts” is defined in Article IV.

“Disbursement” means any Lease Deficit Disbursement, any Unpaid
Demand Note Disbursement, any Termination Date Disbursement or any Termination
Disbursement under a Series 2004-2 Letter of Credit, or any combination
thereof, as the context may require.

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

“Euroclear” is defined in Section 5.2.

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

“Insurance Agreement” means the Insurance Agreement, dated as of
February 18, 2004, among the Surety Provider, the Trustee and AFC-II, which
shall constitute an “Enhancement Agreement” with respect to the Series 2004-2
Notes for all purposes under the Indenture.

“Insured Principal Deficit Amount” means, with respect to any
Distribution Date, the excess, if any, of (a) the Series 2004-2 Outstanding
Principal Amount on such Distribution Date (after giving effect to the
distribution of the Monthly Total Principal Allocation for the Related Month)
over (b) the sum of the Series 2004-2 Available Reserve Account Amount on such
Distribution Date, the Series 2004-2 Letter of Credit Amount on such
Distribution Date and

-6-

 

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

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

“LIBOR” means, with respect to each Series 2004-2 Interest
Period, a rate per annum to be determined by the Trustee as follows:

(i)       On each LIBOR Determination Date, the Trustee will determine the
London interbank offered rate for U.S. dollar deposits for one month that
appears on Telerate Page 3750 as it relates to U.S. dollars as of 11:00 a.m.,
London time, on such LIBOR Determination Date:

(ii)       If, on any LIBOR Determination Date, such rate does not appear
on Telerate Page 3750, the Trustee will request that the principal London
offices of each of four major banks in the London interbank market
selected by the Trustee provide the Trustee with offered quotations for
deposits in U.S. dollars for a period of one month, commencing on the
first day of such Series 2004-2 Interest Period, to prime banks in the
London interbank market at approximately 11:00 a.m., London time, on such
LIBOR Determination Date and in a principal amount equal to an amount of
not less than $250,000 that is representative of a single transaction in
such market at such time. If at least two such quotations are provided,
“LIBOR” for such Series 2004-2 Interest Period will be the arithmetic
mean of such quotations; or

(iii)       If fewer than two such quotations are provided pursuant to
clause (ii), “LIBOR” for such Series 2004-2 Interest Period will be the
arithmetic mean of rates quoted by three major banks in the City of New
York selected by the Trustee at approximately 11:00 a.m., New York City
time, on such LIBOR Determination Date for loans in U.S. dollars to
leading European banks, for a period of one month, commencing on the
first day of such Series 2004-2 Interest Period, and in a principal
amount equal to an amount of not less than $250,000 that is
representative of a single transaction in such market at such time; 
provided, however, that if the banks selected as aforesaid
by such Trustee are not quoting rates as mentioned in this sentence,
“LIBOR” for such Series 2004-2 Interest Period will be the same as
“LIBOR” for the immediately preceding Series 2004-2 Interest Period.

“LIBOR Determination Date” means, with respect to any Series
2004-2 Interest Period, the second London Banking Day preceding the first day
of such Series 2004-2 Interest Period.

“London Banking Day” means any business day on which dealings in
deposits in United States dollars are transacted in the London interbank
market.

“Monthly Total Principal Allocation” means for any Related Month
the sum of all Series 2004-2 Principal Allocations with respect to such Related
Month.

“Moody’s” means Moody’s Investors Service.

-7-

 

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

“Permanent Global Class A-1 Note” is defined in Section 5.2.

“Permanent Global Class A-2 Note” is defined in Section 5.2.

“Permanent Global Class A-3 Note” is defined in Section 5.2.

“Pre-Preference Period Demand Note Payments” means, as of any
date of determination, the aggregate amount of all proceeds of demands made on
the Series 2004-2 Demand Notes included in the Series 2004-2 Demand Note
Payment Amount as of the Series 2004-2 Letter of Credit Termination Date that
were paid by the Demand Note Issuers more than one year before such date of
determination; provided, however, that if an Event of
Bankruptcy (or the occurrence of an event described in clause (a) of the
definition thereof, without the lapse of a period of sixty (60) consecutive
days) with respect to a Demand Note Issuer occurs during such one year period,
(x) the Pre-Preference Period Demand Note Payments as of any date during the
period from and including the date of the occurrence of such Event of
Bankruptcy to and including the conclusion or dismissal of the proceedings
giving rise to such Event of Bankruptcy without continuing jurisdiction by the
court in such proceedings shall equal the Pre-Preference Period Demand Note
Payments as of the date of such occurrence for all Demand Note Issuers and (y)
the Pre-Preference Period Demand Note Payments as of any date after the
conclusion or dismissal of such proceedings shall equal the Series 2004-2
Demand Note Payment Amount as of the date of the conclusion or dismissal of
such proceedings.

“Principal Deficit Amount” means, as of any date of
determination, the excess, if any, of (i) the Series 2004-2 Invested Amount on
such date (after giving effect to the distribution of the Monthly Total
Principal Allocation for the Related Month if such date is a Distribution Date)
over (ii) the Series 2004-2 AESOP I Operating Lease Loan Agreement Borrowing
Base on such date; provided, however the Principal Deficit
Amount on any date occurring during the period commencing on and including the
date of the filing by any of the Lessees of a petition for relief under Chapter
11 of the Bankruptcy Code to but excluding the date on which each of the
Lessees shall have resumed making all payments of the portion of Monthly Base
Rent relating to Loan Interest required to be made under the AESOP I Operating
Lease, shall mean the excess, if any, of (x) the Series 2004-2 Invested Amount
on such date (after giving effect to the distribution of Monthly Total
Principal Allocation for the Related Month if such date is a Distribution Date)
over (y) the sum of (1) the Series 2004-2 AESOP I Operating Lease Loan
Agreement Borrowing Base on such date and (2) the lesser of (a) the Series
2004-2 Liquidity Amount on such date and (b) the Series 2004-2 Required
Liquidity Amount on such date.

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

-8-

 

available amount under such Series 2004-2 Letter of Credit Provider’s Series 2004-2
Letter of Credit as of such date shall be treated as reduced (for calculation
purposes only) by the amount of such unpaid demand and shall not be reinstated for
purposes of such calculation unless and until the date as of which such Series
2004-2 Letter of Credit Provider has paid such amount to the Trustee and been
reimbursed by the Lessee or the applicable Demand Note Issuer, as the case may
be, for such amount (provided that the foregoing calculation shall not
in any manner reduce the undersigned’s actual liability in respect of any
failure to pay any demand under its Series 2004-2 Letter of Credit).

“Qualified Interest Rate Swap Counterparty” means a counterparty
to any Series 2004-2 Interest Rate Swap (A) who is acceptable to the Surety
Provider and (B) who is a bank or other financial institution, which is
acceptable to each Rating Agency or has (i) a short-term senior unsecured debt,
deposit or credit (as the case may be) rating of at least “A-1” from Standard &
Poor’s and of “P-1” from Moody’s and (ii) (a) on the date such Series 2004-2
Interest Rate Swap is executed, a long-term senior unsecured debt, deposit or
credit (as the case may be) rating of at least “AA-” from Standard & Poor’s and
of at least “Aa3” from Moody’s and (b) on any other date, a long-term senior
unsecured debt, deposit or credit (as the case may be) rating of at least “A+”
from Standard & Poor’s and of at least “A1” from Moody’s.

“Requisite Noteholders” means Series 2004-2 Noteholders holding
more than 50% of the Series 2004-2 Invested Amount.

“Restricted Global Class A-1 Note” is defined in Section 5.1.

“Restricted Global Class A-2 Note” is defined in Section 5.1.

“Restricted Global Class A-3 Note” is defined in Section 5.1.

“Series 1998-1 Notes” means the Series of Notes designated as the
Series 1998-1 Notes.

“Series 2000-2 Notes” means the Series of Notes designated as the
Series 2000-2 Notes.

“Series 2000-4 Notes” means the Series of Notes designated as the
Series 2000-4 Notes.

“Series 2001-1 Notes” means the Series of Notes designated as the
Series 2001-1 Notes.

“Series 2001-2 Notes” means the Series of Notes designated as the
Series 2001-2 Notes.

“Series 2002-1 Notes” means the Series of Notes designated as the
Series 2002-1 Notes.

“Series 2002-2 Notes” means the Series of Notes designated as the
Series 2002-2 Notes.

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“Series 2002-3 Notes” means the Series of Notes designated as the
Series 2002-3 Notes.

“Series 2003-1 Notes” means the Series of Notes designated as the
Series 2003-1 Notes.

“Series 2003-2 Notes” means the Series of Notes designated as the
Series 2003-2 Notes.

“Series 2003-3 Notes” means the Series of Notes designated as the
Series 2003-3 Notes.

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

“Series 2003-5 Notes” means the Series of Notes designated as the
Series 2003-5 Notes.

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

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

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

“Series 2004-2 Adjusted Monthly Interest” means (a) for the
initial Distribution Date, an amount equal to $838,302.08 and (b) for any other
Distribution Date, the sum of (i) the sum of (A) for the Series 2004-2 Interest
Period ending on the day preceding such Distribution Date, an amount equal to
the product of (1) the Class A-1 Note Rate and (2) the Class A-1 Outstanding
Principal Amount on the first day of such Series 2004-2 Interest Period,
divided by twelve, (B) an amount equal to the product of (1) the Class A-2 Note
Rate for such Series 2004-2 Interest Period, (2) the Class A-2 Outstanding
Principal Amount on the first day of such Series 2004-2 Interest Period and (3)
a fraction, the numerator of which is the number of days in such Series 2004-2
Interest Period and the denominator of which is 360 and (C) an amount equal to
the product of (1) the Class A-3 Note Rate for such Series 2004-2 Interest
Period, (2) the Class A-3 Outstanding Principal Amount on the first day of such
Series 2004-2 Interest Period and (3) a fraction, the numerator of which is the
number of days in such Series 2004-2 Interest Period and the denominator of
which is 360 and (ii) any amount described in clause (b)(i) with respect to a prior
Distribution Date that remains unpaid as of such Distribution Date (together with
any accrued interest on such amount).

“Series 2004-2 AESOP I Operating Lease Loan Agreement Borrowing Base” means, as of any date of determination, the product of (a) the Series
2004-2 AESOP I Operating

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Lease Vehicle Percentage as of such date and (b) the
AESOP I Operating Lease Loan Agreement Borrowing Base as of such date.

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

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

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

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

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

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

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

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

“Series 2004-2 Closing Date” means February 18, 2004.

“Series 2004-2 Collateral” means the Collateral, each Series
2004-2 Letter of Credit, each Series 2004-2 Demand Note, the Series 2004-2
Distribution Account Collateral, the

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Series 2004-2 Interest Rate Swap
Collateral, the Series 2004-2 Cash Collateral Account Collateral and the Series
2004-2 Reserve Account Collateral.

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

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

“Series 2004-2 Demand Note” means each demand note made by a
Demand Note Issuer, substantially in the form of Exhibit C to this
Supplement, as amended, modified or restated from time to time.

“Series 2004-2 Demand Note Payment Amount” means, as of the
Series 2004-2 Letter of Credit Termination Date, the aggregate amount of all
proceeds of demands made on the Series 2004-2 Demand Notes pursuant to Section
2.5(b) or (c) that were deposited into the Series 2004-2 Distribution Account
and paid to the Series 2004-2 Noteholders during the one year period ending on
the Series 2004-2 Letter of Credit Termination Date; provided, 
however, that if an Event of Bankruptcy (or the occurrence of an event
described in clause (a) of the definition thereof, without the lapse of a
period of sixty (60) consecutive days) with respect to a Demand Note Issuer
shall have occurred during such one year period, the Series 2004-2 Demand Note
Payment Amount as of the Series 2004-2 Letter of Credit Termination Date shall
equal the Series 2004-2 Demand Note Payment Amount as if it were calculated as
of the date of such occurrence.

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

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

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

“Series 2004-2 Eligible Letter of Credit Provider” means a person
satisfactory to ARAC, the Demand Note Issuers and the Surety Provider and
having, at the time of the issuance of the related Series 2004-2 Letter of
Credit, a long-term senior unsecured debt
rating (or the equivalent thereof in the case of Moody’s or Standard &
Poor’s, as applicable) of at least “A+” from Standard & Poor’s and at least
“Al” from Moody’s and a short-term senior unsecured debt rating of at least
“A-1” from Standard & Poor’s and “P-1” from Moody’s that is (a) a commercial
bank having total assets in excess of $500,000,000, (b) a finance company,
insurance company or other financial institution that in the ordinary course of
business issues letters of credit and has total assets in excess of
$200,000,000 or (c) any other financial institution; provided, 
however, that if a person is not a Series 2004-2 Letter of Credit Provider
(or a letter of credit provider under the Supplement for any other Series of
Notes), then such person shall not be a Series 2004-2 Eligible Letter of Credit
Provider until AFC-II has provided ten (10) days’ prior notice to the Rating
Agencies that such person has been proposed as a Series 2004-2 Letter of Credit
Provider.

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

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

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

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

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

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

“Series 2004-2 Interest Period” means a period commencing on and
including a Distribution Date and ending on and including the day preceding the
next succeeding Distribution Date; provided, however that the
initial Series 2004-2 Interest Period shall commence on and include the Series
2004-2 Closing Date and end on and include March 21, 2004.

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

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

“Series 2004-2 Interest Rate Swap Counterparty” means AFC-II’s
counterparty under any Series 2004-2 Interest Rate Swap.

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

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

“Series 2004-2 Invested Percentage” means as of any date of
determination:

     (a)       when used with respect to Principal Collections, the percentage
equivalent (which percentage shall never exceed 100%) of a fraction, the
numerator of which shall be equal to the sum of the Series 2004-2
Invested Amount and the Series 2004-2 Overcollateralization Amount,
determined during the Series 2004-2 Revolving Period as of the

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end of the
Related Month (or, until the end of the initial Related Month, on the
Series 2004-2 Closing Date), or, during the Series 2004-2 Controlled
Amortization Period and the Series 2004-2 Rapid Amortization Period, as
of the end of the Series 2004-2 Revolving Period, and the denominator of
which shall be the greater of (I) the Aggregate Asset Amount as of the
end of the Related Month or, until the end of the initial Related Month,
as of the Series 2004-2 Closing Date, and (II) as of the same date as in
clause (I), the sum of the numerators used to determine (i) invested
percentages for allocations with respect to Principal Collections (for
all Series of Notes and all classes of such Series of Notes) and (ii)
overcollateralization percentages for allocations with respect to
Principal Collections (for all Series of Notes that provide for credit
enhancement in the form of overcollateralization); and

     (b)       when used with respect to Interest Collections, the percentage
equivalent (which percentage shall never exceed 100%) of a fraction, the
numerator of which shall be the Accrued Amounts with respect to the
Series 2004-2 Notes on such date of determination, and the denominator of
which shall be the aggregate Accrued Amounts with respect to all Series
of Notes on such date of determination.

“Series 2004-2 Lease Interest Payment Deficit” means, on any
Distribution Date, an amount equal to the excess, if any, of (a) the aggregate
amount of Interest Collections which pursuant to Section 2.2(a), (b), (c) or
(d) would have been allocated to the Series 2004-2 Accrued Interest Account if
all payments of Monthly Base Rent required to have
been made under the Leases from and excluding the preceding Distribution
Date to and including such Distribution Date were made in full over (b) the
aggregate amount of Interest Collections which pursuant to Section 2.2(a), (b),
(c) or (d) have been allocated to the Series 2004-2 Accrued Interest Account
(excluding any amounts paid into the Series 2004-2 Accrued Interest Account
pursuant to the proviso in Sections 2.2(c)(ii) and/or 2.2(d)(ii)) from and
excluding the preceding Distribution Date to and including such Distribution
Date.

“Series 2004-2 Lease Payment Deficit” means either a Series
2004-2 Lease Interest Payment Deficit or a Series 2004-2 Lease Principal
Payment Deficit.

“Series 2004-2 Lease Principal Payment Carryover Deficit” means
(a) for the initial Distribution Date, zero and (b) for any other Distribution
Date, the excess of (x) the Series 2004-2 Lease Principal Payment Deficit, if
any, on the preceding Distribution Date over (y) the amount deposited
in the Distribution Account on such preceding Distribution Date pursuant to
Section 2.5(b) on account of such Series 2004-2 Lease Principal Payment
Deficit.

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

“Series 2004-2 Letter of Credit” means an irrevocable letter of
credit, if any, substantially in the form of Exhibit D to this
Supplement issued by a Series 2004-2 Eligible Letter of Credit Provider in
favor of the Trustee for the benefit of the Series 2004-2 Noteholders,

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each Series 2004-2 Interest Rate Swap Counterparty and the Surety Provider in form
and substance satisfactory to the Surety Provider.

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

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

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

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

“Series 2004-2 Letter of Credit Termination Date” means the first
to occur of (a) the date on which the Series 2004-2 Notes are fully paid and
the Surety Provider has been paid all Surety Provider Fees and all other Surety
Provider Reimbursement Amounts then due, (b) the Series 2004-2 Termination Date
and (c) such earlier date consented to by the Surety Provider and the Rating
Agencies which consent by the Surety Provider shall be in writing.

“Series 2004-2 Limited Liquidation Event of Default” means, so
long as such event or condition continues, any event or condition of the type
specified in clauses (a) through (j) of Article III; provided, 
however, that any event or condition of the type specified in clauses (a)
through (e) and (h) through (j) of Article III shall not constitute a Series
2004-2 Limited Liquidation Event of Default if (i) within such thirty (30) day
period, such Amortization Event shall have been cured and, after such cure of
such Amortization Event is provided for, the Trustee shall have received the
written consent of the Surety Provider waiving the occurrence of such Series
2004-2 Limited Liquidation Event of Default or (ii) the Trustee shall have
received the written consent of the Surety Provider waiving the occurrence of
such Series 2004-2 Limited Liquidation Event of Default.

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

“Series 2004-2 Maximum Aggregate Kia/Isuzu/Subaru/Hyundai/Suzuki
Amount” means, as of any day, with respect to Kia, Isuzu, Subaru, Hyundai
and Suzuki, in the aggregate, an amount equal to 15% of the aggregate Net Book
Value of all Vehicles leased under the Leases

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on such day or such lesser
percentage as may be agreed to in writing by AFC-II and the Surety Provider of
the aggregate Net Book Value of all Vehicles leased under the Leases on such
day.

“Series 2004-2 Maximum Amount” means any of the Series 2004-2
Maximum Manufacturer Amounts, the Series 2004-2 Maximum Non-Eligible
Manufacturer Amount, the Series 2004-2 Maximum Non-Program Vehicle Amount or
the Series 2004-2 Maximum Specified States Amount.

“Series 2004-2 Maximum Individual Kia/Isuzu/Subaru/Hyundai/Suzuki
Amount” means, as of any day, with respect to Kia, Isuzu, Subaru, Hyundai
or Suzuki, individually, an amount equal to 5% of the aggregate Net Book Value
of all Vehicles leased under the Leases on such day.

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

“Series 2004-2 Maximum Mitsubishi Amount” means, as of any day,
an amount equal to 10% of the aggregate Net Book Value of all Vehicles leased
under the Leases on such day.

“Series 2004-2 Maximum Non-Eligible Manufacturer Amount” means,
as of any day, an amount equal to 3% of the aggregate Net Book Value of all
Vehicles leased under the Leases on such day.

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

“Series 2004-2 Maximum Non-Program Vehicle Percentage” means 25%
or such lesser percentage as may be agreed to in writing by AFC-II and the
Surety Provider on or after the Series 2004-2 Closing Date, with prompt written
notice thereof delivered by AFC-II to the Trustee.

“Series 2004-2 Maximum Specified States Amount” means, as of any
day, an amount equal to 7.5% of the aggregate Net Book Value of all Vehicles
leased under the Leases on such day.

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

“Series 2004-2 Monthly Lease Principal Payment Deficit” means, on
any Distribution Date, an amount equal to the excess, if any, of (a) the
aggregate amount of Principal Collections which pursuant to Section 2.2(a),
(b), (c) or (d) would have been allocated to the Series 2004-2 Collection
Account if all payments required to have been made under the Leases from and
excluding the preceding Distribution Date to and including such Distribution
Date were

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made in full over (b) the aggregate amount of Principal Collections
which pursuant to Section 2.2(a), (b), (c) or (d) have been allocated to the
Series 2004-2 Collection Account (without giving effect to any amounts paid
into the Series 2004-2 Accrued Interest Account pursuant to the proviso in
Sections 2.2(c)(ii) and/or 2.2(d)(ii)) from and excluding the preceding
Distribution Date to and including such Distribution Date.

“Series 2004-2 Non-Program Vehicle Percentage” means, as of any
date of determination, a fraction, expressed as a percentage, the numerator of
which is the aggregate Net Book Value of all Non-Program Vehicles leased under
the AESOP I Operating Lease as of such date and the denominator of which is the aggregate Net
Book Value of all Vehicles leased under the AESOP I Operating Lease as of such
date.

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

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

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

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

“Series 2004-2 Overcollateralization Amount” means (i) as of any
date on which no AESOP I Operating Lease Vehicle Deficiency exists, the Series
2004-2 Required Overcollateralization Amount as of such date and (ii) as of any
date on which an AESOP I Operating Lease Vehicle Deficiency exists, the excess,
if any, of (x) the Series 2004-2 AESOP I Operating Lease Loan Agreement
Borrowing Base as of such date over (y) the Series 2004-2 Invested Amount as of
such date.

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

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

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

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

“Series 2004-2 Rapid Amortization Period” means the period
beginning at the close of business on the Business Day immediately preceding
the day on which an Amortization Event is deemed to have occurred with respect
to the Series 2004-2 Notes and ending upon the earliest to occur of (i) the
date on which the Series 2004-2 Notes are fully paid, the Surety Provider has
been paid all Surety Provider Fees and all other Surety Provider Reimbursement

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Amounts then due and the Series 2004-2 Interest Rate Swaps have been terminated
and there are no amounts due and owing thereunder, (ii) the Series 2004-2
Termination Date and (iii) the termination of the Indenture.

“Series 2004-2 Reimbursement Agreement” means any and each
agreement providing for the reimbursement of a Series 2004-2 Letter of Credit
Provider for draws under its Series 2004-2 Letter of Credit as the same may be
amended, supplemented, restated or otherwise modified from time to time.

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

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

“Series 2004-2 Required Enhancement Amount” means, as of any date
of determination, the sum of (i) the product of the Series 2004-2 Required
Enhancement Percentage as of such date and the Series 2004-2 Invested Amount as
of such date, (ii) the Series 2004-2 AESOP I Operating Lease Vehicle Percentage
as of the immediately preceding Business Day of the excess, if any, of the
Non-Program Vehicle Amount as of such date over the Series 2004-2 Maximum
Non-Program Vehicle Amount as of such date, (iii) the Series 2004-2 AESOP I
Operating Lease Vehicle Percentage as of the immediately preceding Business Day
of the excess, if any, of the aggregate Net Book Value of all Vehicles
manufactured by Mitsubishi and leased under the Leases as of such date over the
Series 2004-2 Maximum Mitsubishi Amount as of such date, (iv) the Series 2004-2
AESOP I Operating Lease Vehicle Percentage as of the immediately preceding
Business Day of the excess, if any, of the aggregate Net Book Value of all
Vehicles manufactured by Kia, Isuzu, Subaru, Hyundai or Suzuki, individually,
and leased under the Leases as of such date over the Series 2004-2 Maximum
Individual Kia/Isuzu/Subaru/ Hyundai/Suzuki Amount as of such date, (v) the
Series 2004-2 AESOP I Operating Lease Vehicle Percentage as of the immediately
preceding Business Day of the excess, if any, of the aggregate Net Book Value
of all Vehicles manufactured by Kia, Isuzu, Subaru, Hyundai or Suzuki, in the
aggregate, and leased under the Leases as of such date over the Series 2004-2
Maximum Aggregate Kia/Isuzu/Subaru/Hyundai/Suzuki Amount as of such date, (vi)
the Series 2004-2 AESOP I Operating Lease Vehicle Percentage as of the
immediately preceding Business Day of the excess, if any, of the Specified
States Amount as of such date over the Series 2004-2 Maximum Specified States
Amount as of such date and (vii) the Series 2004-2 AESOP I Operating Lease
Vehicle Percentage as of the immediately preceding Business Day of the excess,
if any, of the Non-Eligible Manufacturer Amount as of such date over the Series
2004-2 Maximum Non-Eligible Manufacturer Amount as of such date.

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

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

“Series 2004-2 Required Non-Program Enhancement Percentage”
means, as of any date of determination, the greater of (a) 20.15% and (b) the
sum of (i) 20.15% and (ii) the highest, for any calendar month within the
preceding twelve calendar months, of the greater of (x) an amount (not less
than zero) equal to 100% minus the Measurement Month Average for the
immediately preceding Measurement Month and (y) an amount (not less than zero)
equal to 100% minus the Market Value Average as of the Determination
Date within such calendar month (excluding the Market Value Average for any
Determination Date which has not yet occurred).

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

“Series 2004-2 Required Reserve Account Amount” means, with
respect to any Distribution Date, an amount equal to the greater of (a) the
excess, if any, of the Series 2004-2 Required Liquidity Amount on such
Distribution Date over the Series 2004-2 Letter of Credit Liquidity Amount on
such Distribution Date (after giving effect to any payments of principal to be
made on the Series 2004-2 Notes on such Distribution Date) and (b) the excess,
if any, of the Series 2004-2 Required Enhancement Amount over the Series 2004-2
Enhancement Amount (excluding therefrom the Series 2004-2 Available Reserve
Account Amount and calculated after giving effect to any payments of principal
to be made on the Series 2004-2 Notes) on such Distribution Date.

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

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

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

“Series 2004-2 Revolving Period” means, the period from and
including the Series 2004-2 Closing Date to the earlier of (i) the commencement
of the Three-Year Notes Controlled Amortization Period and (ii) the
commencement of the Series 2004-2 Rapid Amortization Period; provided that if
the Class A-1 Notes and the Class A-2 Notes are paid in
full on or prior to the
April 2007 Distribution Date, then the Series 2004-2 Revolving
Period shall also include the period from and including the first day of
the calendar month during which the Distribution Date on which the Class A-1
Notes and the Class A-2 Notes are paid in full

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occurs to the earlier of (i) the
commencement of the Class A-3 Controlled Amortization Period and (ii) the
commencement of the Series 2004-2 Rapid Amortization Period.

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

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

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

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

“Shadow Rating” means the rating of the Series 2004-2 Notes by
Standard & Poor’s or Moody’s, as applicable, without giving effect to the
Surety Bond.

“Standard & Poor’s” means Standard & Poor’s Ratings Services, a
division of The McGraw-Hill Companies, Inc.

“Supplement” is defined in the preamble hereto.

“Surety Bond” means the Note Guaranty Insurance Policy No.
04030001, dated February 18, 2004, issued by the Surety Provider.

“Surety Default” means (i) the occurrence and continuance of any
failure by the Surety Provider to pay upon a demand for payment in accordance
with the requirements of the Surety Bond or (ii) the occurrence of an Event of
Bankruptcy with respect to the Surety Provider.

“Surety Provider” means Financial Guaranty Insurance Company, a
New York stock insurance company. The Surety Provider shall constitute an
“Enhancement Provider” with respect to the Series 2004-2 Notes for all purposes
under the Indenture and the other Related Documents.

“Surety Provider Fee” is defined in the Insurance Agreement.

“Surety Provider Reimbursement Amounts” means, as of any date of
determination, (i) an amount equal to the aggregate of any amounts due as of
such date to the Surety Provider pursuant to the Insurance Agreement in respect
of unreimbursed draws under the Surety Bond, including interest thereon
determined in accordance with the Insurance Agreement, and (ii) an amount equal
to the aggregate of any other amounts due as of such date to the Surety
Provider pursuant to the Insurance Agreement.

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“Telerate Page 3750” means the display page currently so
designated on the Moneyline Telerate Service (or such other page as may replace
that page on that service for the purpose of displaying comparable rates or
prices).

“Temporary Global Class A-1 Note” is defined in Section 5.2.

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

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

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

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

“Three-Year Notes Controlled Amortization Period” means the
period commencing at the opening of business on October 1, 2006 (or, if such
day is not a Business Day, the Business Day immediately preceding such day) and
continuing to the earliest of (i) the commencement of the Series 2004-2 Rapid
Amortization Period, (ii) the date on which the Class A-1 Notes and the Class
A-2 Notes are fully paid and (iii) the termination of the Indenture.

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

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

“Trustee” is defined in the recitals hereto.

“Unpaid Demand Note Disbursement” means an amount drawn under a
Series 2004-2 Letter of Credit pursuant to a Certificate of Unpaid Demand Note
Demand.

“Waivable Amount” is defined in Article IV.

“Waiver Event” means the occurrence of the delivery of a Waiver
Request and the subsequent waiver of any Series 2004-2 Maximum Amount.

“Waiver Request” is defined in Article IV.

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ARTICLE II

SERIES 2004-2 ALLOCATIONS

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

Section 2.1 Establishment of Series 2004-2 Collection Account, Series
2004-2 Excess Collection Account and Series 2004-2 Accrued Interest Account. (a) All Collections allocable to the Series 2004-2 Notes shall be
allocated to the Collection Account.

(b)      The Trustee will create three administrative subaccounts within the
Collection Account for the benefit of the Series 2004-2 Noteholders, each
Series 2004-2 Interest Rate Swap Counterparty and the Surety Provider: the
Series 2004-2 Collection Account (such sub-account, the “Series 2004-2
Collection Account”), the Series 2004-2 Excess Collection Account (such
sub-account, the “Series 2004-2 Excess Collection Account”) and the
Series 2004-2 Accrued Interest Account (such sub-account, the “Series
2004-2 Accrued Interest Account”).

Section 2.2 Allocations with Respect to the Series 2004-2 Notes.
The net proceeds from the initial sale of the Series 2004-2 Notes will be
deposited into the Collection Account. On each Business Day on which
Collections are deposited into the Collection Account (each such date, a “Series 2004-2 Deposit Date”), the Administrator will direct the Trustee in
writing pursuant to the Administration Agreement to allocate all amounts
deposited into the Collection Account in accordance with the provisions of this
Section 2.2:

(a)      Allocations of Collections During the Series 2004-2
Revolving Period. During the Series 2004-2 Revolving Period, the
Administrator will direct the Trustee in writing pursuant to the
Administration Agreement to allocate on each day, prior to 11:00 a.m.
(New York City time) on each Series 2004-2 Deposit Date, all amounts
deposited into the Collection Account as set forth below:

(i)      allocate to the Series 2004-2 Collection Account an amount
equal to the sum of (A) the Series 2004-2 Invested Percentage (as
of such day) of the aggregate amount of Interest Collections on
such day and (B) any amounts received by the Trustee on such day in
respect of the Series 2004-2 Interest Rate Swaps. All such amounts
allocated to the Series 2004-2 Collection Account shall be further
allocated to the Series 2004-2 Accrued Interest Account; and

(ii)      allocate to the Series 2004-2 Excess Collection Account
an amount equal to the Series 2004-2 Invested Percentage (as of
such day) of the aggregate amount of Principal Collections on such
day (for any such day, the “Series 2004-2 Principal Allocation”); provided, however, if a Waiver Event
shall have occurred, then such allocation shall be modified as
provided in Article IV.

(b)      Allocations of Collections During any Series 2004-2
Controlled Amortization Period. With respect to any Series 2004-2
Controlled Amortization Period, the Administrator will direct the Trustee
in writing pursuant to the Administration

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Agreement to allocate, prior to
11:00 a.m. (New York City time) on any Series 2004-2 Deposit Date, all
amounts deposited into the Collection Account as set forth below:

(i)      allocate to the Series 2004-2 Collection Account an amount
determined as set forth in Section 2.2(a)(i) above for such day,
which amount shall be further allocated to the Series 2004-2
Accrued Interest Account; and

(ii)      (A) with respect to the Three-Year Notes Controlled
Amortization Period, allocate to the Series 2004-2 Collection
Account an amount equal to the Series 2004-2 Principal Allocation
for such day, which amount shall be used to make principal payments
in respect of the Class A-1 Notes and the Class A-2 Notes; 
provided, however, that if the Monthly Total
Principal Allocation exceeds the sum of the Class A-1 Controlled
Distribution Amount and the Class A-2 Controlled Distribution
Amount, then the amount of such excess shall be allocated to the
Series 2004-2 Excess Collection Account; and provided, 
further, that if a Waiver Event shall have occurred, then such
allocation shall be modified as provided in Article IV and (B) with
respect to the Class A-3 Controlled Amortization Period, allocate
to the Series 2004-2 Collection Account an amount equal to the
Series 2004-2 Principal Allocation for such day, which amount shall
be used to make principal payments in respect of the Class A-3
Notes; provided, however, that if the Monthly
Total Principal Allocation exceeds the Class A-3 Controlled
Distribution Amount, then the amount of such excess shall be
allocated to the Series 2004-2 Excess Collection Account; and 
provided, further, that if a Waiver Event shall have
occurred, then such allocation shall be modified as provided in
Article IV.

(c)      Allocations of Collections During the Series 2004-2 Rapid
Amortization Period. With respect to the Series 2004-2 Rapid
Amortization Period and thereafter, other than after the occurrence of an
Event of Bankruptcy with respect to ARAC, any other Lessee or AGH, the
Administrator will direct the Trustee in writing pursuant to the
Administration Agreement to allocate, prior to 11:00 a.m. (New York City
time) on any Series 2004-2 Deposit Date, all amounts deposited into the
Collection Account as set forth below:

(i)      allocate to the Series 2004-2 Collection Account an amount
determined as set forth in Section 2.2(a)(i) above for such day,
which amount shall be further allocated to the Series 2004-2
Accrued Interest Account; and

(ii)      allocate to the Series 2004-2 Collection Account an
amount equal to the Series 2004-2 Principal Allocation for such
day, which amount shall be used to make principal payments in
respect of the Class A-1 Notes, the Class A-2 Notes and the Class
A-3 Notes, ratably, without preference or priority of any kind,
until the Series 2004-2 Invested Amount is paid in full;
provided that if on any Determination Date (A) the
Administrator determines that the amount anticipated
to be available from Interest Collections allocable to the
Series 2004-2 Notes, any amounts payable to the Trustee in respect
of the Series 2004-2
Interest Rate Swaps and other amounts
available pursuant to Section 2.3 to pay Series 2004-2

-23-

 

Adjusted
Monthly Interest and the Fixed Rate Payment, if any, on the next
succeeding Distribution Date will be less than the sum of the
Series 2004-2 Adjusted Monthly Interest and the Fixed Rate Payment,
if any, for such Distribution Date and (B) the Series 2004-2
Enhancement Amount is greater than zero, then the Administrator
shall direct the Trustee in writing to reallocate a portion of the
Principal Collections allocated to the Series 2004-2 Notes during
the Related Month equal to the lesser of such insufficiency and the
Series 2004-2 Enhancement Amount to the Series 2004-2 Accrued
Interest Account to be treated as Interest Collections on such
Distribution Date.

(d)      Allocations of Collections after the Occurrence of an Event
of Bankruptcy. After the occurrence of an Event of Bankruptcy with
respect to ARAC, any other Lessee or AGH, the Administrator will direct
the Trustee in writing pursuant to the Administration Agreement to
allocate, prior to 11:00 a.m. (New York City time) on any Series 2004-2
Deposit Date, all amounts attributable to the AESOP I Operating Lease
Loan Agreement deposited into the Collection Account as set forth below:

(i)      allocate to the Series 2004-2 Collection Account an amount
equal to the sum of (A) the Series 2004-2 AESOP I Operating Lease
Vehicle Percentage as of the date of the occurrence of such Event
of Bankruptcy of the aggregate amount of Interest Collections made
under the AESOP I Operating Lease Loan Agreement for such day and
(B) any amounts received by the Trustee in respect of the Series
2004-2 Interest Rate Swaps on such day. All such amounts allocated
to the Series 2004-2 Collection Account shall be further allocated
to the Series 2004-2 Accrued Interest Account;

(ii)      allocate to the Series 2004-2 Collection Account an
amount equal to the Series 2004-2 AESOP I Operating Lease Vehicle
Percentage as of the date of the occurrence of such Event of
Bankruptcy of the aggregate amount of Principal Collections made
under the AESOP I Operating Lease Loan Agreement, which amount
shall be used to make principal payments in respect of the Series
Class A-1 Notes, the Class A-2 Notes and the Class A-3 Notes,
ratably, without preference or priority of any kind, until the
Series 2004-2 Invested Amount is paid in full; provided
that if on any Determination Date (A) the Administrator determines
that the amount anticipated to be available from Interest
Collections allocable to the Series 2004-2 Notes, any amounts
payable to the Trustee in respect of Series 2004-2 Interest Rate
Swaps and other amounts available pursuant to Section 2.3 to pay
Series 2004-2 Adjusted Monthly Interest and the Fixed Rate Payment,
if any, on the next succeeding Distribution Date will be less than
the sum of the Series 2004-2 Adjusted Monthly Interest and the
Fixed Rate Payment, if any, for such Distribution Date and (B) the
Series 2004-2 Enhancement Amount is greater than zero, then the
Administrator shall direct the Trustee in writing to reallocate a
portion of the Principal Collections allocated to the Series 2004-2
Notes during the Related Month equal to the lesser of such
insufficiency and the Series 2004-2 Enhancement Amount to the
Series 2004-2 Accrued Interest Account to be treated as Interest
Collections on such Distribution Date.

-24-

 

(e)      Series 2004-2 Excess Collection Account. Amounts
allocated to the Series 2004-2 Excess Collection Account on any Series
2004-2 Deposit Date will be (w) first, deposited in the Series 2004-2
Reserve Account in an amount up to the excess, if any, of the Series
2004-2 Required Reserve Account Amount for such date over the Series
2004-2 Available Reserve Account Amount for such date, (x) second, used
to pay the principal amount of other Series of Notes that are then in
amortization, (y) third, released to AESOP Leasing in an amount equal to
the product of (A) the Loan Agreement’s Share with respect to the AESOP I
Operating Lease Loan Agreement as of such date times (B) 100% minus
 the Loan Payment Allocation Percentage with respect to the AESOP I
Operating Lease Loan Agreement as of such date times (C) the amount of
any remaining funds and (z) fourth, paid to AFC-II for any use permitted
by the Related Documents including to make Loans under the Loan
Agreements to the extent the Borrowers have requested Loans thereunder
and Eligible Vehicles are available for financing thereunder; 
provided, however, that in the case of clauses (x), (y) and
(z), that no Amortization Event, Series 2004-2 Enhancement Deficiency or
AESOP I Operating Lease Vehicle Deficiency would result therefrom or
exist immediately thereafter. Upon the occurrence of an Amortization
Event, funds on deposit in the Series 2004-2 Excess Collection Account
will be withdrawn by the Trustee, deposited in the Series 2004-2
Collection Account and allocated as Principal Collections to reduce the
Series 2004-2 Invested Amount on the immediately succeeding Distribution
Date.

(f)      Allocations From Other Series. Amounts allocated to
other Series of Notes that have been reallocated by AFC-II to the Series
2004-2 Notes (i) during the Series 2004-2 Revolving Period shall be
allocated to the Series 2004-2 Excess Collection Account and applied in
accordance with Section 2.2(e) and (ii) during the Series 2004-2
Controlled Amortization Period or the Series 2004-2 Rapid Amortization
Period shall be allocated to the Series 2004-2 Collection Account and
applied in accordance with Section 2.2(b) or 2.2(c), as applicable, to
make principal payments in respect of the Series 2004-2 Notes.

(g)      Past Due Rent Payments. Notwithstanding the foregoing,
if in the case of Section 2.2(a) or (b), after the occurrence of a Series
2004-2 Lease Payment Deficit, the Lessees shall make payments of Monthly
Base Rent or other amounts payable by the Lessees under the Leases on or
prior to the fifth Business Day after the occurrence of such Series
2004-2 Lease Payment Deficit (a “Past Due Rent Payment”), the
Administrator shall direct the Trustee in writing pursuant to the
Administration Agreement to allocate to the Series 2004-2 Collection
Account an amount equal to the Series 2004-2 Invested Percentage as of
the date of the occurrence of such Series 2004-2 Lease Payment Deficit of
the Collections attributable to such Past Due Rent Payment (the “Series 2004-2 Past Due Rent Payment”). The Administrator shall
instruct the Trustee in writing pursuant to the Administration Agreement
to withdraw from the Series 2004-2 Collection Account and apply the
Series 2004-2 Past Due Rent Payment in the following order:

(i)      if the occurrence of such Series 2004-2 Lease Payment
Deficit resulted in one or more Lease Deficit Disbursements being
made under the Series 2004-2 Letters of Credit, pay to each Series
2004-2 Letter of Credit Provider who

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made such a Lease Deficit
Disbursement for application in accordance with the provisions of
the applicable Series 2004-2 Reimbursement Agreement an amount
equal to the lesser of (x) the unreimbursed amount of such Series
2004-2 Letter of Credit Provider’s Lease Deficit Disbursement and
(y) such Series 2004-2 Letter of Credit Provider’s Pro Rata Share
of the Series 2004-2 Past Due Rent Payment;

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

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

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

(v)      treat the remaining amount of the Series 2004-2 Past Due
Rent Payment as Principal Collections allocated to the Series
2004-2 Notes in accordance with Section 2.2(a)(ii) or 2.2(b)(ii),
as the case may be.

Section 2.3      Payments to Noteholders and Each Series 2004-2 Interest
Rate Swap Counterparty. On each Determination Date, as provided below,
the Administrator shall instruct the Paying Agent in writing pursuant to the
Administration Agreement to withdraw, and on the following Distribution Date
the Paying Agent, acting in accordance with such instructions, shall withdraw
the amounts required to be withdrawn from the Collection Account pursuant to
Section 2.3(a) below in respect of all funds available from Series 2004-2
Interest Rate Swap Proceeds and Interest Collections processed since the
preceding Distribution Date and allocated to the holders of the Series 2004-2
Notes.

(a)      Note Interest with respect to the Series 2004-2 Notes and Payments
on the Series 2004-2 Interest Rate Swaps. On each Determination Date, the
Administrator shall instruct the Trustee and the Paying Agent in writing
pursuant to the Administration Agreement as to the amount to be withdrawn and
paid pursuant to Section 2.4 from the Series 2004-2 Accrued Interest Account to
the extent funds are anticipated to be available from Interest Collections
allocable to the Series 2004-2 Notes and the Series 2004-2 Interest Rate Swap
Proceeds processed from

-26-

 

but not including the preceding Distribution Date
through the succeeding Distribution Date in respect of (w) first, an amount
equal to the Series 2004-2 Monthly Interest for the Series 2004-2 Interest
Period ending on the day preceding the related Distribution Date, (x) second,
an amount equal to the Fixed Rate Payment for the next succeeding Distribution
Date, (y) third, an amount equal to the amount of any unpaid Series 2004-2
Shortfall as of the preceding Distribution Date (together with any accrued
interest on such Series 2004-2 Shortfall) and (z) fourth, an amount equal to
the Surety Provider Fee for such Series 2004-2 Interest Period plus any Surety
Provider Reimbursement Amounts then due and owing. On the following
Distribution Date, the Trustee shall withdraw the amounts described in the
first sentence of this Section 2.3(a) from the Series 2004-2 Accrued Interest
Account and deposit such amounts in the Series 2004-2 Distribution Account.

(b)      Lease Payment Deficit Notice. On or before 10:00 a.m. (New
York City time) on each Distribution Date, the Administrator shall notify the
Trustee and the Surety Provider of the amount of any Series 2004-2 Lease
Payment Deficit, such notification to be in the form of Exhibit E to
this Supplement (each a “Lease Payment Deficit Notice”).

(c)      Draws on Series 2004-2 Letters of Credit For Series 2004-2 Lease
Interest Payment Deficits. If the Administrator determines on any
Distribution Date that there exists a Series 2004-2 Lease Interest Payment
Deficit, the Administrator shall instruct the Trustee in writing to draw on the
Series 2004-2 Letters of Credit, if any, and, the Trustee shall, by 12:00 noon
(New York City time) on such Distribution Date draw an amount as set forth in
such notice equal to the least of (i) such Series 2004-2 Lease Interest Payment
Deficit, (ii) the excess, if any, of the sum of (A) the sum of the amounts
described in clauses (w), (x), (y) and (z) of Section 2.3(a) above on such
Distribution Date and (B) during the Series 2004-2 Rapid Amortization Period,
the Series 2004-2 Trustee’s Fees for such Distribution Date, over the amounts
available from the Series 2004-2 Accrued Interest Account and (iii) the Series
2004-2 Letter of Credit Liquidity Amount on the Series 2004-2 Letters of Credit
by presenting to each Series 2004-2 Letter of Credit Provider (with a copy to
the Surety Provider) a draft accompanied by a Certificate of Lease Deficit
Demand and shall cause the Lease Deficit Disbursements to be deposited in the
Series 2004-2 Distribution Account on such Distribution Date; provided, however, that if the Series 2004-2 Cash Collateral Account has
been established and funded, the Trustee shall withdraw from the Series 2004-2
Cash Collateral Account and deposit in the Series 2004-2 Distribution Account
an amount equal to the lesser of (x) the Series 2004-2 Cash Collateral
Percentage on such Distribution Date of the least of the amounts described in
clauses (i), (ii) and (iii) above and (y) the Series 2004-2 Available Cash
Collateral Account Amount on such Distribution Date and draw an amount equal to
the remainder of such amount on the Series 2004-2 Letters of Credit. During
the continuance of a Surety Default, no amounts in respect of the Surety
Provider Fee shall be drawn on the Series 2004-2 Letters of Credit.

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

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Administrator shall instruct the Trustee
in writing to withdraw from the Series 2004-2 Reserve Account and deposit in
the Series 2004-2 Distribution Account on such Distribution Date an amount
equal to the lesser of the Series 2004-2 Available Reserve Account Amount and
such insufficiency. During the continuance of a Surety Default, no amounts in
respect of the Surety Provider Fee shall be withdrawn from the Series 2004-2
Reserve Account. The Trustee shall withdraw such amount from the Series 2004-2
Reserve Account and deposit such amount in the Series 2004-2 Distribution
Account.

(e)      Surety Bond. If the Administrator determines on any
Distribution Date that the sum of the amounts available from the Series 2004-2
Accrued Interest Account plus the amount, if any, to be drawn under
the Series 2004-2 Letters of Credit and/or to be withdrawn from the Series
2004-2 Cash Collateral Account pursuant to Section 2.3(c) above plus
the amount, if any, to be withdrawn from the Series 2004-2 Reserve Account
pursuant to Section 2.3(d) above is insufficient to pay the Series 2004-2
Adjusted Monthly Interest for such Distribution Date, the Administrator shall
instruct the Trustee in writing to make a demand on the Surety Bond and, upon
receipt of such notice by the Trustee on or prior to 11:00 a.m. (New York City
time) on such Distribution Date, the Trustee shall, by 12:00 noon (New York
City time) on such Distribution Date, make a demand on the Surety Bond in an
amount equal to such insufficiency in accordance with the terms thereof and
shall cause the proceeds thereof to be deposited in the Series 2004-2
Distribution Account.

(f)      Balance. On or prior to the second Business Day preceding
each Distribution Date, the Administrator shall instruct the Trustee and the
Paying Agent in writing pursuant to the Administration Agreement to pay the
balance (after making the payments required in Section 2.4), if any, of the
amounts available from the Series 2004-2 Accrued Interest Account and the
Series 2004-2 Distribution Account, plus the amount, if any, drawn
under the Series 2004-2 Letters of Credit and/or withdrawn from the Series
2004-2 Cash Collateral Account pursuant to Section 2.3(c) plus the
amount, if any, withdrawn from the Series 2004-2 Reserve Account pursuant to
Section 2.3(d) as follows:

(i)      on each Distribution Date during the Series 2004-2 Revolving
Period or a Series 2004-2 Controlled Amortization Period, (1) first, to
each Series 2004-2 Interest Rate Swap Counterparty, an amount equal to
the portion, if any, of the Fixed Rate Payment for such Distribution Date
due and owing to such Series 2004-2 Interest Rate Swap Counterparty, (2)
second, to the Surety Provider, in an amount equal to (x) the Surety
Provider Fee for the related Series 2004-2 Interest Period and, without
duplication, (y) any Surety Provider Reimbursement Amounts then due and
owing, (3) third, to the Administrator, an amount equal to the Series
2004-2 Percentage as of the beginning of the Series 2004-2 Interest
Period ending on the day preceding such Distribution Date of the portion
of the Monthly Administration Fee payable by AFC-II (as specified in
clause (iii) of the definition thereof) for such Series 2004-2 Interest
Period, (4) fourth, to the Trustee, an amount equal to the Series 2004-2
Percentage as of the beginning of such Series 2004-2 Interest Period of
the fees owing to the Trustee under the Indenture for such Series 2004-2
Interest Period, (5) fifth, to pay any Carrying Charges (other than
Carrying Charges provided for above) to the Persons to whom such amounts
are owed, an amount equal to the Series 2004-2 Percentage as of the
beginning of such Series 2004-2 Interest Period of such Carrying Charges
(other than Carrying Charges provided for

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above) for such Series 2004-2
Interest Period, (6) sixth, to each Series 2004-2 Interest Rate Swap
Counterparty, any amounts due and owing under the applicable Series
2004-2 Interest Rate Swap (other than any amount included in the Fixed
Rate Payment) and (7) seventh, the balance, if any (“Excess
Collections”), shall be withdrawn by the Paying Agent from the
Series 2004-2 Collection Account and deposited in the Series 2004-2
Excess Collection Account; and

(ii)      on each Distribution Date during the Series 2004-2 Rapid
Amortization Period, (1) first, to each Series 2004-2 Interest Rate Swap
Counterparty, an amount equal to the portion, if any, of the Fixed Rate
Payment for such Distribution Date due and owing to such Series 2004-2
Interest Rate Swap Counterparty, (2) second, to the Surety Provider, in
an amount equal to (x) the Surety Provider Fee for the related Series
2004-2 Interest Period and, without duplication, (y) any Surety Provider
Reimbursement Amounts then due and owing, (3) third, to the Trustee, an
amount equal to the Series 2004-2 Percentage as of the beginning of the
Series 2004-2 Interest Period ending on the day preceding such
Distribution Date of the fees owing to the Trustee under the Indenture
for such Series 2004-2 Interest Period, (4) fourth, to the Administrator,
an amount equal to the Series 2004-2 Percentage as of the beginning of
such Series 2004-2 Interest Period of the portion of the Monthly
Administration Fee (as specified in clause (iii) of the definition
thereof) payable by AFC-II for such Series 2004-2 Interest Period, (5)
fifth, to pay any Carrying Charges (other than Carrying Charges provided
for above) to the Persons to whom such amounts are owed, an amount equal
to the Series 2004-2 Percentage as of the beginning of such Series 2004-2
Interest Period of such Carrying Charges (other than Carrying Charges
provided for above) for such Series 2004-2 Interest Period, (6) sixth, so
long as the Series 2004-2 Invested Amount is greater than the Monthly
Total Principal Allocations for the Related Month, an amount equal to the
excess of the Series 2004-2 Invested Amount over the Monthly Total
Principal Allocations for the Related Month shall be treated as Principal
Collections and (7) seventh, to each Series 2004-2 Interest Rate Swap
Counterparty, any amounts due and owing under the applicable Series
2004-2 Interest Rate Swap (other than any amount included in the Fixed
Rate Payment).

(g)      Shortfalls. If the amounts described in Section 2.3 are
insufficient to pay the Series 2004-2 Monthly Interest on any Distribution
Date, payments of interest to the Series 2004-2 Noteholders will be reduced on
a pro rata basis by the amount of such deficiency. The
aggregate amount, if any, of such deficiency on any Distribution Date shall be
referred to as the “Series 2004-2 Shortfall.” Interest shall accrue
on the portion of the Series 2004-2 Shortfall allocable to the Class A-1 Notes
at the Class A-1 Note Rate, on the portion of the Series 2004-2 Shortfall
allocable to the Class A-2 Notes at the Class A-2 Note Rate and on the portion
of the Series 2004-2 Shortfall allocable to the Class A-3 Notes at the Class
A-3 Note Rate.

(h)      Listing Information Requirement. From the time of the
Administrator’s written notice to the Trustee that the Class A-2 Notes and/or
the Class A-3 Notes are listed on the Luxembourg Stock Exchange until the
Administrator shall give the Trustee written notice that the Class A-2 Notes
and/or Class A-3 Notes are not listed on the Luxembourg Stock Exchange, the
Trustee shall, or shall instruct the Paying Agent to, cause the Class A-2 Note
Rate and/or the Class A-3 Note Rate, as applicable, for the next succeeding
Series 2004-2 Interest Period, the

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number of days in such Series 2004-2
Interest Period, the Distribution Date for such Series 2004-2 Interest Period
and the amount of interest payable on the Class A-2 Notes and/or the Class A-3
Notes, as applicable, on such Distribution Date to be (A) communicated to DTC,
Euroclear, Clearstream, the Paying Agent in Luxembourg and the Luxembourg Stock
Exchange no later than 11:00 a.m. (London time) on the Business Day immediately
following each LIBOR Determination Date and (B) published in the Authorized
Newspaper as soon as possible after its determination.

Section 2.4 Payment of Note Interest. On each Distribution Date,
subject to Section 9.8 of the Base Indenture, the Paying Agent shall, in
accordance with Section 6.1 of the Base Indenture, pay to the Series 2004-2
Noteholders from the Series 2004-2 Distribution Account the amount due to the
Series 2004-2 Noteholders deposited in the Series 2004-2 Distribution Account
pursuant to Section 2.3.

Section 2.5 Payment of Note Principal. (a) Monthly Payments
During Controlled Amortization Period or Rapid Amortization Period.
Commencing on the second Determination Date during the Three-Year Notes
Controlled Amortization Period or the Class A-3 Controlled Amortization Period,
as the case may be, or the first Determination Date after the commencement of
the Series 2004-2 Rapid Amortization Period, the Administrator shall instruct
the Trustee and the Paying Agent in writing pursuant to the Administration
Agreement and in accordance with this Section 2.5 as to (i) the amount
allocated to the Series 2004-2 Notes during the Related Month pursuant to
Section 2.2(b)(ii), (c)(ii) or (d)(ii), as the case may be, (ii) any amounts to
be drawn on the Series 2004-2 Demand Notes and/or on the Series 2004-2 Letters
of Credit (or withdrawn from the Series 2004-2 Cash Collateral Account), (iii)
any amounts to be withdrawn from the Series 2004-2 Reserve Account and
deposited into the Series 2004-2 Distribution Account and (iv) the amount of
any demand on the Surety Bond in accordance with the terms thereof. On the
Distribution Date following each such Determination Date, the Trustee shall
withdraw the amount allocated to the Series 2004-2 Notes during the Related
Month pursuant to Section 2.2(b)(ii), (c)(ii) or (d)(ii), as the case may be,
from the Series 2004-2 Collection Account and deposit such amount in the Series
2004-2 Distribution Account, to be paid to the holders of the Series 2004-2
Notes.

(b)      Principal Draws on Series 2004-2 Letters of Credit. If the
Administrator determines on any Distribution Date during the Series 2004-2
Rapid Amortization Period that there exists a Series 2004-2 Lease Principal
Payment Deficit, the Administrator shall instruct the Trustee in writing to
draw on the Series 2004-2 Letters of Credit, if any, as provided below;
provided, however, that the Administrator shall not instruct the
Trustee to draw on the Series 2004-2 Letters of Credit in respect of a Series
2004-2 Lease Principal Payment Deficit on or after the date of the filing by
any of the Lessees of a petition for relief under Chapter 11 of
the Bankruptcy Code unless and until the date on which each of the Lessees
shall have resumed making all payments of the portion of Monthly Base Rent
relating to Loan Interest required to be made under the AESOP I Operating
Lease. Upon receipt of a notice by the Trustee from the Administrator in
respect of a Series 2004-2 Lease Principal Payment Deficit on or prior to 11:00
a.m. (New York City time) on a Distribution Date, the Trustee shall, by 12:00
noon (New York City time) on such Distribution Date draw an amount as set forth
in such notice equal to the lesser of (i) such Series 2004-2 Lease Principal
Payment Deficit and (ii) the Series 2004-2 Letter of Credit Liquidity Amount on
the Series 2004-2 Letters of Credit by presenting to each Series

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2004-2 Letter
of Credit Provider a draft accompanied by a Certificate of Lease Deficit Demand
and shall cause the Lease Deficit Disbursements to be deposited in the Series
2004-2 Distribution Account on such Distribution Date; provided,
however, that if the Series 2004-2 Cash Collateral Account has been
established and funded, the Trustee shall withdraw from the Series 2004-2 Cash
Collateral Account and deposit in the Series 2004-2 Distribution Account an
amount equal to the lesser of (x) the Series 2004-2 Cash Collateral Percentage
on such Distribution Date of the Series 2004-2 Lease Principal Payment Deficit
and (y) the Series 2004-2 Available Cash Collateral Account Amount on such
Distribution Date and draw an amount equal to the remainder of such amount on
the Series 2004-2 Letters of Credit.

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

(i)      Demand Note Draw. If the amount to be deposited in the
Series 2004-2 Distribution Account in accordance with Section 2.5(a)
together with any amounts to be deposited therein in accordance with
Section 2.5(b) allocable to the Class A-1 Notes and the Class A-2 Notes
on the Three-Year Notes Final Distribution Date, or the Class A-3 Notes
on the Class A-3 Final Distribution Date, as the case may be, is less
than the sum of the Class A-1 Invested Amount and the Class A-2 Invested
Amount, or the Class A-3 Invested Amount, as the case may be, and there
are any Series 2004-2 Letters of Credit on such date, then, prior to
10:00 a.m. (New York City time) on the second Business Day prior to such
Series 2004-2 Final Distribution Date, the Administrator shall instruct
the Trustee in writing (with a copy to the Surety Provider) to make a
demand (a “Demand Notice”) substantially in the form attached
hereto as Exhibit F on the Demand Note Issuers for payment under
the Series 2004-2 Demand Notes in an amount equal to the lesser of (i)
such insufficiency and (ii) the Series 2004-2 Letter of Credit Amount.
The Trustee shall, prior to 12:00 noon (New York City time) on the second
Business Day preceding such Series 2004-2 Final Distribution Date,
deliver such Demand Notice to the Demand Note Issuers; provided,
however, that if an Event of Bankruptcy (or the occurrence of an
event described in clause (a) of the definition thereof, without the
lapse of a period of 60 consecutive days) with respect to a Demand Note
Issuer shall have occurred and be continuing, the Trustee shall not be
required to deliver such Demand Notice to such Demand Note Issuer. The
Trustee shall cause the proceeds of any demand on the Series 2004-2
Demand Notes to be deposited into the Series 2004-2 Distribution Account.

(ii)      Letter of Credit Draw. In the event that either (x)
on or prior to 10:00 a.m. (New York City time) on the Business Day
immediately preceding any Distribution Date next succeeding any date on
which a Demand Notice has been transmitted by the Trustee to the Demand
Note Issuers pursuant to clause (i) of this Section 2.5(c), any Demand
Note Issuer shall have failed to pay to the Trustee or deposit into the
Series 2004-2 Distribution Account the amount specified in such Demand
Notice in whole or in part or (y) due to the occurrence of an Event of
Bankruptcy (or the occurrence of an event described in clause (a) of the
definition thereof, without the lapse of a period of 60 consecutive days)
with respect to one or more of the Demand Note Issuers, the Trustee

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shall
not have delivered such Demand Notice to any Demand Note Issuer on the
second Business Day preceding such Series 2004-2 Final Distribution Date,
then, in the case of (x) or (y) the Trustee shall draw on the Series
2004-2 Letters of Credit by 12:00 noon (New York City time) on such
Business Day an amount equal to the lesser of (a) the amount that the
Demand Note Issuers failed to pay under the Series 2004-2 Demand Notes
(or, the amount that the Trustee failed to demand for payment thereunder)
and (b) the Series 2004-2 Letter of Credit Amount on such Business Day by
presenting to each Series 2004-2 Letter of Credit Provider (with a copy
to the Surety Provider) a draft accompanied by a Certificate of Unpaid
Demand Note Demand; provided, however, that if the
Series 2004-2 Cash Collateral Account has been established and funded,
the Trustee shall withdraw from the Series 2004-2 Cash Collateral Account
and deposit in the Series 2004-2 Distribution Account an amount equal to
the lesser of (x) the Series 2004-2 Cash Collateral Percentage on such
Business Day of the amount that the Demand Note Issuers failed to pay
under the Series 2004-2 Demand Notes (or, the amount that the Trustee
failed to demand for payment thereunder) and (y) the Series 2004-2
Available Cash Collateral Account Amount on such Business Day and draw an
amount equal to the remainder of the amount that the Demand Note Issuers
failed to pay under the Series 2004-2 Demand Notes (or, the amount that
the Trustee failed to demand for payment thereunder) on the Series 2004-2
Letters of Credit. The Trustee shall deposit, or cause the deposit of,
the proceeds of any draw on the Series 2004-2 Letters of Credit and the
proceeds of any withdrawal from the Series 2004-2 Cash Collateral Account
to be deposited in the Series 2004-2 Distribution Account.

(iii)      Reserve Account Withdrawal. If, after giving effect
to the deposit into the Series 2004-2 Distribution Account of the amount
to be deposited in accordance with Section 2.5(a) and the amounts
described in clauses (i) and (ii) of this Section 2.5(c), the amount to
be deposited in the Series 2004-2 Distribution Account with respect to a
Series 2004-2 Final Distribution Date is or will be less than the sum of
the Class A-1 Invested Amount and the Class A-2 Invested Amount, or the
Class A-3 Invested Amount, as the case may be, then, prior to 12:00 noon
(New York City time) on the second Business Day prior to such Series
2004-2 Final Distribution Date, the Administrator shall instruct the
Trustee in writing to withdraw from the Series 2004-2 Reserve Account, an
amount equal to the lesser of the Series 2004-2 Available Reserve Account
Amount and such remaining insufficiency and deposit it in the Series
2004-2 Distribution Account on such Series 2004-2 Final Distribution
Date.

(iv)      Demand on Surety Bond. If after giving effect to the
deposit into the Series 2004-2 Distribution Account of the amount to be
deposited in accordance with
Section 2.5(a) and all other amounts described in clauses (i), (ii)
and (iii) of this Section 2.5(c), the amount to be deposited in the
Series 2004-2 Distribution Account with respect to such Series 2004-2
Final Distribution Date is or will be less than the sum of the Class A-1
Outstanding Principal Amount and the Class A-2 Outstanding Principal
Amount, or the Class A-3 Outstanding Principal Amount, as the case may
be, then the Trustee shall make a demand on the Surety Bond by 12:00 noon
(New York City time) on the second Business Day preceding such
Distribution Date in an amount equal to such insufficiency in accordance
with the terms thereof and shall cause the proceeds thereof to be
deposited in the Series 2004-2 Distribution Account.

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(d)      Principal Deficit Amount. On each Distribution Date, other
than the Three-Year Notes Final Distribution Date and the Class A-3 Final
Distribution Date, on which the Principal Deficit Amount is greater than zero,
amounts shall be transferred to the Series 2004-2 Distribution Account as
follows:

(i)      Demand Note Draw. If on any Determination Date, the
Administrator determines that the Principal Deficit Amount with respect
to the next succeeding Distribution Date will be greater than zero and
there are any Series 2004-2 Letters of Credit on such date, prior to
10:00 a.m. (New York City time) on the second Business Day prior to such
Distribution Date, the Administrator shall instruct the Trustee in
writing (with a copy to the Surety Provider) to deliver a Demand Notice
to the Demand Note Issuers demanding payment of an amount equal to the
lesser of (A) the Principal Deficit Amount and (B) the Series 2004-2
Letter of Credit Amount. The Trustee shall, prior to 12:00 noon (New
York City time) on the second Business Day preceding such Distribution
Date, deliver such Demand Notice to the Demand Note Issuers; provided, however, that if an Event of Bankruptcy (or the occurrence
of an event described in clause (a) of the definition thereof, without
the lapse of a period of 60 consecutive days) with respect to a Demand
Note Issuer shall have occurred and be continuing, the Trustee shall not
be required to deliver such Demand Notice to such Demand Note Issuer.
The Trustee shall cause the proceeds of any demand on the Series 2004-2
Demand Note to be deposited into the Series 2004-2 Distribution Account.

(ii)      Letter of Credit Draw. In the event that either (x)
on or prior to 10:00 a.m. (New York City time) on the Business Day prior
to such Distribution Date, any Demand Note Issuer shall have failed to
pay to the Trustee or deposit into the Series 2004-2 Distribution Account
the amount specified in such Demand Notice in whole or in part or (y) due
to the occurrence of an Event of Bankruptcy (or the occurrence of an
event described in clause (a) of the definition thereof, without the
lapse of a period of 60 consecutive days) with respect to any Demand Note
Issuer, the Trustee shall not have delivered such Demand Notice to any
Demand Note Issuer on the second Business Day preceding such Distribution
Date, then, in the case of (x) or (y) the Trustee shall on such Business
Day draw on the Series 2004-2 Letters of Credit an amount equal to the
lesser of (i) Series 2004-2 Letter of Credit Amount and (ii) the
aggregate amount that the Demand Note Issuers failed to pay under the
Series 2004-2 Demand Notes (or, the amount that the Trustee failed to
demand for payment thereunder) by presenting to each Series 2004-2 Letter
of Credit Provider (with a copy to the Surety Provider) a draft
accompanied by a Certificate of Unpaid Demand Note Demand; provided, however, that if the Series 2004-2 Cash Collateral Account has been established and funded, the
Trustee shall withdraw from the Series 2004-2 Cash Collateral Account and
deposit in the Series 2004-2 Distribution Account an amount equal to the
lesser of (x) the Series 2004-2 Cash Collateral Percentage on such
Business Day of the aggregate amount that the Demand Note Issuers failed
to pay under the Series 2004-2 Demand Notes (or, the amount that the
Trustee failed to demand for payment thereunder) and (y) the Series
2004-2 Available Cash Collateral Account Amount on such Business Day and
draw an amount equal to the remainder of the aggregate amount that the
Demand Note Issuers failed to pay under the Series 2004-2 Demand Notes
(or, the amount that the Trustee failed to demand for payment thereunder)
on the Series 2004-2 Letters of Credit. The Trustee shall deposit

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into,
or cause the deposit of, the proceeds of any draw on the Series 2004-2
Letters of Credit and the proceeds of any withdrawal from the Series
2004-2 Cash Collateral Account to be deposited in the Series 2004-2
Distribution Account.

(iii)      Reserve Account Withdrawal. If the Series 2004-2
Letter of Credit Amount will be less than the Principal Deficit Amount on
any Distribution Date, then, prior to 12:00 noon (New York City time) on
the second Business Day prior to such Distribution Date, the
Administrator shall instruct the Trustee in writing to withdraw from the
Series 2004-2 Reserve Account, an amount equal to the lesser of (x) the
Series 2004-2 Available Reserve Account Amount and (y) the amount by
which the Principal Deficit Amount exceeds the amounts to be deposited in
the Series 2004-2 Distribution Account in accordance with clauses (i) and
(ii) of this Section 2.5(d) and deposit it in the Series 2004-2
Distribution Account on such Distribution Date.

(iv)      Demand on Surety Bond. If the sum of the Series
2004-2 Letter of Credit Amount and the Series 2004-2 Available Reserve
Account Amount will be less than the Principal Deficit Amount on any
Distribution Date, then the Trustee shall make a demand on the Surety
Bond by 12:00 noon (New York City time) on the second Business Day
preceding such Distribution Date in an amount equal to the Insured
Principal Deficit Amount and shall cause the proceeds thereof to be
deposited in the Series 2004-2 Distribution Account.

(e)      Distribution. On each Distribution Date occurring on or
after the date a withdrawal is made from the Series 2004-2 Collection Account
pursuant to Section 2.5(a) or amounts are deposited in the Series 2004-2
Distribution Account pursuant to Section 2.5(b), (c) or (d) the Paying Agent
shall, in accordance with Section 6.1 of the Base Indenture, pay pro
rata to each Class A-1 Noteholder, Class A-2 Noteholder or Class A-3
Noteholder, as applicable, from the Series 2004-2 Distribution Account the
amount deposited therein pursuant to Section 2.5(a), (b), (c) or (d), to the
extent necessary to pay the sum of the Class A-1 Controlled Amortization Amount
and the Class A-2 Controlled Amortization Amount during the Three-Year Notes
Controlled Amortization Period or the Class A-3 Controlled Amortization Amount
during the Class A-3 Controlled Amortization Period, as the case may be, or to
the extent necessary to pay the Class-A-1 Invested Amount, the Class A-2
Invested Amount and the Class A-3 Invested Amount during the Series 2004-2
Rapid Amortization Period.

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

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Section 2.7 Series-2004-2 Reserve Account. (a) 
Establishment of Series 2004-2 Reserve Account. AFC-II shall establish
and maintain in the name of the Series 2004-2 Agent for the benefit of the
Series 2004-2 Noteholders, each Series 2004-2 Interest Rate Swap Counterparty
and the Surety Provider, or cause to be established and maintained, an account
(the “Series 2004-2 Reserve Account”), bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the
Series 2004-2 Noteholders, each Series 2004-2 Interest Rate Swap Counterparty
and the Surety Provider. The Series 2004-2 Reserve Account shall be maintained
(i) with a Qualified Institution, or (ii) as a segregated trust account with
the corporate trust department of a depository institution or trust company
having corporate trust powers and acting as trustee for funds deposited in the
Series 2004-2 Reserve Account; provided that, if at any time such
Qualified Institution is no longer a Qualified Institution or the credit rating
of any securities issued by such depositary institution or trust company shall
be reduced to below “BBB-” by Standard & Poor’s or “Baa2” by Moody’s, then
AFC-II shall, within 30 days of such reduction, establish a new Series 2004-2
Reserve Account with a new Qualified Institution. If the Series 2004-2 Reserve
Account is not maintained in accordance with the previous sentence, AFC-II
shall establish a new Series 2004-2 Reserve Account, within ten (10) Business
Days after obtaining knowledge of such fact, which complies with such sentence,
and shall instruct the Series 2004-2 Agent in writing to transfer all cash and
investments from the non-qualifying Series 2004-2 Reserve Account into the new
Series 2004-2 Reserve Account. Initially, the Series 2004-2 Reserve Account
will be established with The Bank of New York.

(b)      Administration of the Series 2004-2 Reserve Account. The
Administrator may instruct the institution maintaining the Series 2004-2
Reserve Account to invest funds on deposit in the Series 2004-2 Reserve Account
from time to time in Permitted Investments; provided, however
, that any such investment shall mature not later than the Business Day
prior to the Distribution Date following the date on which such funds were
received, unless any Permitted Investment held in the Series 2004-2 Reserve
Account is held with the Paying Agent, then such investment may mature on such
Distribution Date and such funds shall be available for withdrawal on or prior
to such Distribution Date. All such Permitted Investments will be credited to
the Series 2004-2 Reserve Account and any such Permitted Investments that
constitute (i) physical property (and that is not either a United States
security entitlement or a security entitlement) shall be physically delivered
to the Trustee; (ii) United States security entitlements or security
entitlements shall be controlled (as defined in Section 8-106 of the New York
UCC) by the Trustee pending maturity or disposition, and (iii) uncertificated
securities (and not United
States security entitlements) shall be delivered to the Trustee by causing
the Trustee to become the registered holder of such securities. The Trustee
shall, at the direction and expense of AFC-II, take such action as is required
to maintain the Trustee’s security interest in the Permitted Investments
credited to the Series 2004-2 Reserve Account. AFC-II shall not direct the
Trustee to dispose of (or permit the disposal of) any Permitted Investments
prior to the maturity thereof to the extent such disposal would result in a
loss of the purchase price of such Permitted Investments. In the absence of
written investment instructions hereunder, funds on deposit in the Series
2004-2 Reserve Account shall remain uninvested.

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

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(d) Series 2004-2 Reserve Account Constitutes Additional Collateral
for Series 2004-2 Notes. In order to secure and provide for the repayment
and payment of the AFC-II Obligations with respect to the Series 2004-2 Notes,
AFC-II hereby grants a security interest in and assigns, pledges, grants,
transfers and sets over to the Series 2004-2 Agent, for the benefit of the
Series 2004-2 Noteholders, each Series 2004-2 Interest Rate Swap Counterparty
and the Surety Provider, all of AFC-II’s right, title and interest in and to
the following (whether now or hereafter existing or acquired): (i) the Series
2004-2 Reserve Account, including any security entitlement thereto; (ii) all
funds on deposit therein from time to time; (iii) all certificates and
instruments, if any, representing or evidencing any or all of the Series 2004-2
Reserve Account or the funds on deposit therein from time to time; (iv) all
investments made at any time and from time to time with monies in the Series
2004-2 Reserve Account, whether constituting securities, instruments, general
intangibles, investment property, financial assets or other property; (v) all
interest, dividends, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of or in exchange for
the Series 2004-2 Reserve Account, the funds on deposit therein from time to
time or the investments made with such funds; and (vi) all proceeds of any and
all of the foregoing, including, without limitation, cash (the items in the
foregoing clauses (i) through (vi) are referred to, collectively, as the “
Series 2004-2 Reserve Account Collateral”). The Series 2004-2 Agent shall
possess all right, title and interest in and to all funds on deposit from time
to time in the Series 2004-2 Reserve Account and in all proceeds thereof, and
shall be the only person authorized to originate entitlement orders in respect
of the Series 2004-2 Reserve Account. The Series 2004-2 Reserve Account
Collateral shall be under the sole dominion and control of the Series 2004-2
Agent for the benefit of the Series 2004-2 Noteholders, each Series 2004-2
Interest Rate Swap Counterparty and the Surety Provider. The Series 2004-2
Agent hereby agrees (i) to act as the securities intermediary (as defined in
Section 8-102(a)(14) of the New York UCC) with respect to the Series 2004-2
Reserve Account; (ii) that each item of property (whether investment property,
financial asset, security, instrument or cash) credited to the Series 2004-2
Reserve Account shall be treated as a financial asset (as defined in Section
8-102(a)(9) of the New York UCC) and (iii) to comply with any entitlement order
(as defined in Section 8-102(a)(8) of the New York UCC) issued by the Trustee.

(e)      Series 2004-2 Reserve Account Surplus. In the event that the
Series 2004-2 Reserve Account Surplus on any Distribution Date, after giving
effect to all withdrawals from the Series 2004-2 Reserve Account, is greater
than zero, if no Series 2004-2 Enhancement Deficiency or AESOP I Operating
Lease Vehicle Deficiency would result therefrom or exist
thereafter, the Trustee, acting in accordance with the written
instructions of the Administrator (with a copy of such written instructions to
be provided by the Administrator to the Surety Provider) pursuant to the
Administration Agreement, shall withdraw from the Series 2004-2 Reserve Account
an amount equal to the Series 2004-2 Reserve Account Surplus and shall pay such
amount to AFC-II.

(f)      Termination of Series 2004-2 Reserve Account. Upon the
termination of the Indenture pursuant to Section 11.1 of the Base Indenture,
the Trustee, acting in accordance with the written instructions of the
Administrator, after the prior payment of all amounts owing to the Series
2004-2 Noteholders and to the Surety Provider and payable from the Series
2004-2 Reserve Account as provided herein, shall withdraw from the Series
2004-2 Reserve Account all amounts on deposit therein for payment to AFC-II.

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Section 2.8 Series 2004-2 Letters of Credit and Series 2004-2 Cash
Collateral Account. (a) Series 2004-2 Letters of Credit and Series 2004-2
Cash Collateral Account Constitute Additional Collateral for Series 2004-2
Notes. In order to secure and provide for the repayment and payment of the
AFC-II Obligations with respect to the Series 2004-2 Notes, AFC-II hereby
grants a security interest in and assigns, pledges, grants, transfers and sets
over to the Trustee, for the benefit of the Series 2004-2 Noteholders, each
Series 2004-2 Interest Rate Swap Counterparty and the Surety Provider, all of
AFC-II’s right, title and interest in and to the following (whether now or
hereafter existing or acquired): (i) each Series 2004-2 Letter of Credit; (ii)
the Series 2004-2 Cash Collateral Account, including any security entitlement
thereto; (iii) all funds on deposit in the Series 2004-2 Cash Collateral
Account from time to time; (iv) all certificates and instruments, if any,
representing or evidencing any or all of the Series 2004-2 Cash Collateral
Account or the funds on deposit therein from time to time; (v) all investments
made at any time and from time to time with monies in the Series 2004-2 Cash
Collateral Account, whether constituting securities, instruments, general
intangibles, investment property, financial assets or other property; (vi) all
interest, dividends, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of or in exchange for
the Series 2004-2 Cash Collateral Account, the funds on deposit therein from
time to time or the investments made with such funds; and (vii) all proceeds of
any and all of the foregoing, including, without limitation, cash (the items in
the foregoing clauses (ii) through (vii) are referred to, collectively, as the
“Series 2004-2 Cash Collateral Account Collateral”). The Trustee
shall, for the benefit of the Series 2004-2 Noteholders, each Series 2004-2
Interest Rate Swap Counterparty and the Surety Provider, maintain possession of
the Series 2004-2 Letter of Credit, possess all right, title and interest in
all funds on deposit from time to time in the Series 2004-2 Cash Collateral
Account and in all proceeds thereof, and shall be the only person authorized to
originate entitlement orders in respect of the Series 2004-2 Cash Collateral
Account. The Series 2004-2 Cash Collateral Account shall be under the sole
dominion and control of the Trustee for the benefit of the Series 2004-2
Noteholders, each Series 2004-2 Interest Rate Swap Counterparty and the Surety
Provider. The Series 2004-2 Agent hereby agrees (i) to act as the securities
intermediary (as defined in Section 8-102(a)(14) of the New York UCC) with
respect to the Series 2004-2 Cash Collateral Account; (ii) that each item of
property (whether investment property, financial asset, security, instrument or
cash) credited to the Series 2004-2 Cash Collateral Account shall be treated as
a financial asset (as defined in
Section 8-102(a)(9) of the New York UCC) and (iii) to comply with any
entitlement order (as defined in Section 8-102(a)(8) of the New York UCC)
issued by the Trustee.

(b)      Series 2004-2 Letter of Credit Expiration Date. If prior to
the date which is ten (10) days prior to the then — scheduled Series 2004-2
Letter of Credit Expiration Date with respect to any Series 2004-2 Letter of
Credit, excluding the amount available to be drawn under such Series 2004-2
Letter of Credit but taking into account each substitute Series 2004-2 Letter
of Credit which has been obtained from a Series 2004-2 Eligible Letter of
Credit Provider and is in full force and effect on such date, the Series 2004-2
Enhancement Amount would be equal to or more than the Series 2004-2 Required
Enhancement Amount and the Series 2004-2 Liquidity Amount would be equal to or
greater than the Series 2004-2 Required Liquidity Amount, then the
Administrator shall notify the Trustee and the Surety Provider (with the Surety
Provider to be provided supporting calculations in reasonable detail) in
writing no later than two (2) Business Days prior to such Series 2004-2 Letter
of Credit Expiration Date of such determination. If prior to the date which is
ten (10) days prior to the then-scheduled Series 2004-2 Letter of Credit

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Expiration Date with respect to any Series 2004-2 Letter of Credit, excluding
the amount available to be drawn under such Series 2004-2 Letter of Credit but
taking into account a substitute Series 2004-2 Letter of Credit which has been
obtained from a Series 2004-2 Eligible Letter of Credit Provider and is in full
force and effect on such date, the Series 2004-2 Enhancement Amount would be
less than the Series 2004-2 Required Enhancement Amount or the Series 2004-2
Liquidity Amount would be less than the Series 2004-2 Required Liquidity
Amount, then the Administrator shall notify the Trustee and the Surety Provider
(with the Surety Provider to be provided supporting calculations in reasonable
detail) in writing no later than two (2) Business Days prior to such Series
2004-2 Letter of Credit Expiration Date of (x) the greater of (A) the excess,
if any, of the Series 2004-2 Required Enhancement Amount over the Series 2004-2
Enhancement Amount, excluding the available amount under such expiring Series
2004-2 Letter of Credit but taking into account any substitute Series 2004-2
Letter of Credit which has been obtained from a Series 2004-2 Eligible Letter
of Credit Provider and is in full force and effect, on such date, and (B) the
excess, if any, of the Series 2004-2 Required Liquidity Amount over the Series
2004-2 Liquidity Amount, excluding the available amount under such expiring
Series 2004-2 Letter of Credit but taking into account any substitute Series
2004-2 Letter of Credit which has been obtained from a Series 2004-2 Eligible
Letter of Credit Provider and is in full force and effect, on such date, and
(y) the amount available to be drawn on such expiring Series 2004-2 Letter of
Credit on such date. Upon receipt of such notice by the Trustee on or prior to
10:00 a.m. (New York City time) on any Business Day, the Trustee shall, by
12:00 noon (New York City time) on such Business Day (or, in the case of any
notice given to the Trustee after 10:00 a.m. (New York City time), by 12:00
noon (New York City time) on the next following Business Day), draw the lesser
of the amounts set forth in clauses (x) and (y) above on such expiring Series
2004-2 Letter of Credit by presenting a draft (with a copy to the Surety
Provider) accompanied by a Certificate of Termination Demand and shall cause
the Termination Disbursement to be deposited in the Series 2004-2 Cash
Collateral Account.

If the Trustee does not receive the notice from the Administrator
described in the first paragraph of this Section 2.8(b) on or prior to the date
that is two (2) Business Days prior to each Series 2004-2 Letter of Credit
Expiration Date, the Trustee shall, by 12:00 noon (New York City time) on such
Business Day draw the full amount of such Series 2004-2 Letter of Credit by
presenting a draft accompanied by a Certificate of Termination Demand and
shall cause the Termination Disbursement to be deposited in the Series 2004-2
Cash Collateral Account.

(c)      Series 2004-2 Letter of Credit Providers. The Administrator
shall notify the Trustee and the Surety Provider in writing within one (1)
Business Day of becoming aware that (i) the long-term senior unsecured debt
credit rating of any Series 2004-2 Letter of Credit Provider has fallen below
“A+” as determined by Standard & Poor’s or “Al” as determined by Moody’s or
(ii) the short-term senior unsecured debt credit rating of any Series 2004-2
Letter of Credit Provider has fallen below “A-1” as determined by Standard &
Poor’s or “P-1” as determined by Moody’s. At such time the Administrator shall
also notify the Trustee of (i) the greater of (A) the excess, if any, of the
Series 2004-2 Required Enhancement Amount over the Series 2004-2 Enhancement
Amount, excluding the available amount under the Series 2004-2 Letter of Credit
issued by such Series 2004-2 Letter of Credit Provider, on such date, and (B)
the excess, if any, of the Series 2004-2 Required Liquidity Amount over the
Series 2004-2 Liquidity Amount, excluding the available amount under such
Series 2004-2 Letter of Credit, on such date, and (ii) the amount available to
be drawn on such Series 2004-2 Letter of Credit on such date.

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Upon receipt of
such notice by the Trustee on or prior to 10:00 a.m. (New York City time) on
any Business Day, the Trustee shall, by 12:00 noon (New York City time) on such
Business Day (or, in the case of any notice given to the Trustee after 10:00
a.m. (New York City time), by 12:00 noon (New York City time) on the next
following Business Day), draw on such Series 2004-2 Letter of Credit in an
amount equal to the lesser of the amounts in clause (i) and clause (ii) of the
immediately preceding sentence on such Business Day by presenting a draft
accompanied by a Certificate of Termination Demand and shall cause the
Termination Disbursement to be deposited in the Series 2004-2 Cash Collateral
Account.

(d)      Termination Date Demands on the Series 2004-2 Letters of Credit. Prior to 10:00 a.m. (New York City time) on the Business Day immediately
succeeding the Series 2004-2 Letter of Credit Termination Date, the
Administrator shall determine the Series 2004-2 Demand Note Payment Amount, if
any, as of the Series 2004-2 Letter of Credit Termination Date and, if the
Series 2004-2 Demand Note Payment Amount is greater than zero, instruct the
Trustee in writing to draw on the Series 2004-2 Letters of Credit. Upon
receipt of any such notice by the Trustee on or prior to 11:00 a.m. (New York
City time) on a Business Day, the Trustee shall, by 12:00 noon (New York City
time) on such Business Day draw an amount equal to the lesser of (i) the Series
2004-2 Demand Note Payment Amount and (ii) the Series 2004-2 Letter of Credit
Liquidity Amount on the Series 2004-2 Letters of Credit by presenting to each
Series 2004-2 Letter of Credit Provider (with a copy to the Surety Provider) a
draft accompanied by a Certificate of Termination Date Demand and shall cause
the Termination Date Disbursement to be deposited in the Series 2004-2 Cash
Collateral Account; provided, however, that if the Series
2004-2 Cash Collateral Account has been established and funded, the Trustee
shall draw an amount equal to the product of (a) 100% minus the Series
2004-2 Cash Collateral Percentage and (b) the lesser of the amounts referred to
in clause (i) and (ii) on such Business Day on the Series 2004-2 Letters of
Credit as calculated by the Administrator and provided in writing to the
Trustee and the Surety Provider.

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

(f)      Establishment of Series 2004-2 Cash Collateral Account. On
or prior to the date of any drawing under a Series 2004-2 Letter of Credit
pursuant to Section 2.8(b), (c) or (d) above, AFC-II shall establish and
maintain in the name of the Trustee for the benefit of the Series 2004-2
Noteholders, each Series 2004-2 Interest Rate Swap Counterparty and the Surety
Provider, or cause to be established and maintained, an account (the “Series 2004-2 Cash Collateral Account”), bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the
Series 2004-2 Noteholders, each Series 2004-2 Interest Rate Swap Counterparty
and the Surety Provider. The Series 2004-2 Cash Collateral Account shall be
maintained (i) with a Qualified Institution, or (ii) as a segregated trust
account with the corporate trust department of a depository institution or
trust company having corporate trust powers and acting as trustee for funds
deposited in the Series 2004-2 Cash Collateral Account; provided,
however, that if at any time such Qualified Institution is no longer a
Qualified Institution or the

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credit rating of any securities issued by such
depository institution or trust company shall be reduced to below “BBB-” by
Standard & Poor’s or “Baa3” by Moody’s, then AFC-II shall, within 30 days of
such reduction, establish a new Series 2004-2 Cash Collateral Account with a
new Qualified Institution or a new segregated trust account with the corporate
trust department of a depository institution or trust company having corporate
trust powers and acting as trustee for funds deposited in the Series 2004-2
Cash Collateral Account. If a new Series 2004-2 Cash Collateral Account is
established, AFC-II shall instruct the Trustee in writing to transfer all cash
and investments from the non-qualifying Series 2004-2 Cash Collateral Account
into the new Series 2004-2 Cash Collateral Account.

(g)      Administration of the Series 2004-2 Cash Collateral Account.
AFC-II may instruct (by standing instructions or otherwise) the institution
maintaining the Series 2004-2 Cash Collateral Account to invest funds on
deposit in the Series 2004-2 Cash Collateral Account from time to time in
Permitted Investments; provided, however, that any such
investment shall mature not later than the Business Day prior to the
Distribution Date following the date on which such funds were received, unless
any Permitted Investment held in the Series 2004-2 Cash Collateral Account is
held with the Paying Agent, in which case such investment may mature on such
Distribution Date so long as such funds shall be available for withdrawal on or
prior to such Distribution Date. All such Permitted Investments will be
credited to the Series 2004-2 Cash Collateral Account and any such Permitted
Investments that constitute (i) physical property (and that is not either a
United States security entitlement or a security entitlement) shall be
physically delivered to the Trustee; (ii) United States security entitlements
or security entitlements shall be controlled (as defined in Section 8-106 of
the New York UCC) by the Trustee pending maturity or disposition, and (iii)
uncertificated securities (and not United States security entitlements) shall
be delivered to the Trustee by causing the Trustee to become the registered
holder of such securities. The Trustee shall, at the expense of AFC-II, take
such action as is required to maintain the Trustee’s security interest in the
Permitted Investments credited to the Series 2004-2 Cash Collateral Account.
AFC-II shall not direct the Trustee to dispose of (or permit the disposal of)
any Permitted Investments prior to the maturity thereof to the extent such
disposal would result in a loss of the purchase price of such Permitted
Investments. In the absence of
written investment instructions hereunder, funds on deposit in the Series
2004-2 Cash Collateral Account shall remain uninvested.

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

(i)      Series 2004-2 Cash Collateral Account Surplus. In the event
that the Series 2004-2 Cash Collateral Account Surplus on any Distribution Date
(or, after the Series 2004-2 Letter of Credit Termination Date, on any date) is
greater than zero, the Trustee, acting in accordance with the written
instructions (a copy of which shall be provided by the Administrator to the
Surety Provider) of the Administrator, shall withdraw from the Series 2004-2
Cash Collateral Account an amount equal to the Series 2004-2 Cash Collateral
Account Surplus and shall pay such amount: first, to the Series
2004-2 Letter of Credit Providers to the extent of any unreimbursed drawings
under the related Series 2004-2 Reimbursement Agreement, for application in
accordance with the provisions of the related Series 2004-2 Reimbursement
Agreement, and, second, to AFC-II any remaining amount.

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(j)      Post-Series 2004-2 Letter of Credit Termination Date Withdrawals
from the Series 2004-2 Cash Collateral Account. If the Surety Provider
notifies the Trustee in writing that the Surety Provider shall have paid a
Preference Amount (as defined in the Surety Bond) under the Surety Bond,
subject to the satisfaction of the conditions set forth in the next succeeding
sentence, the Trustee shall withdraw from the Series 2004-2 Cash Collateral
Account and pay to the Surety Provider an amount equal to the lesser of (i) the
Series 2004-2 Available Cash Collateral Account Amount on such date and (ii)
such Preference Amount. Prior to any withdrawal from the Series 2004-2 Cash
Collateral Account pursuant to this Section 2.8(j), the Trustee shall have
received a certified copy of the order requiring the return of such Preference
Amount.

(k)      Termination of Series 2004-2 Cash Collateral Account. Upon
the termination of this Supplement in accordance with its terms, the Trustee,
acting in accordance with the written instructions of the Administrator, after
the prior payment of all amounts owing to the Series 2004-2 Noteholders and to
the Surety Provider and payable from the Series 2004-2 Cash Collateral Account
as provided herein, shall withdraw from the Series 2004-2 Cash Collateral
Account all amounts on deposit therein (to the extent not withdrawn pursuant to
Section 2.8(i) above) and shall pay such amounts: first, to the
Series 2004-2 Letter of Credit Providers to the extent of any unreimbursed
drawings under the related Series 2004-2 Reimbursement Agreement, for
application in accordance with the provisions of the related Series 2004-2
Reimbursement Agreement, and, second, to AFC-II any remaining amount.

Section 2.9 Series 2004-2 Distribution Account. (a) 
Establishment of Series 2004-2 Distribution Account. The Trustee shall
establish and maintain in the name of the Series 2004-2 Agent for the benefit
of the Series 2004-2 Noteholders, each Series 2004-2 Interest Rate Swap
Counterparty and the Surety Provider, or cause to be established and
maintained, an account (the “Series 2004-2 Distribution Account”),
bearing a designation clearly indicating that the funds deposited therein are
held for the benefit
of the Series 2004-2 Noteholders, each Series 2004-2 Interest Rate Swap
Counterparty and the Surety Provider. The Series 2004-2 Distribution Account
shall be maintained (i) with a Qualified Institution, or (ii) as a segregated
trust account with the corporate trust department of a depository institution
or trust company having corporate trust powers and acting as trustee for funds
deposited in the Series 2004-2 Distribution Account; provided,
however, that if at any time such Qualified Institution is no longer a
Qualified Institution or the credit rating of any securities issued by such
depositary institution or trust company shall be reduced to below “BBB-” by
Standard & Poor’s or “Baa3” by Moody’s, then AFC-II shall, within 30 days of
such reduction, establish a new Series 2004-2 Distribution Account with a new
Qualified Institution. If the Series 2004-2 Distribution Account is not
maintained in accordance with the previous sentence, AFC-II shall establish a
new Series 2004-2 Distribution Account, within ten (10) Business Days after
obtaining knowledge of such fact, which complies with such sentence, and shall
instruct the Series 2004-2 Agent in writing to transfer all cash and
investments from the non-qualifying Series 2004-2 Distribution Account into the
new Series 2004-2 Distribution Account. Initially, the Series 2004-2
Distribution Account will be established with The Bank of New York.

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

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Investments; provided, however, that any such investment shall mature not later than
the Business Day prior to the Distribution Date following the date on which
such funds were received, unless any Permitted Investment held in the Series
2004-2 Distribution Account is held with the Paying Agent, then such investment
may mature on such Distribution Date and such funds shall be available for
withdrawal on or prior to such Distribution Date. All such Permitted
Investments will be credited to the Series 2004-2 Distribution Account and any
such Permitted Investments that constitute (i) physical property (and that is
not either a United States security entitlement or a security entitlement)
shall be physically delivered to the Trustee; (ii) United States security
entitlements or security entitlements shall be controlled (as defined in
Section 8-106 of the New York UCC) by the Trustee pending maturity or
disposition, and (iii) uncertificated securities (and not United States
security entitlements) shall be delivered to the Trustee by causing the Trustee
to become the registered holder of such securities. The Trustee shall, at the
direction and expense of AFC-II, take such action as is required to maintain
the Trustee’s security interest in the Permitted Investments credited to the
Series 2004-2 Distribution Account. AFC-II shall not direct the Trustee to
dispose of (or permit the disposal of) any Permitted Investments prior to the
maturity thereof to the extent such disposal would result in a loss of the
purchase price of such Permitted Investments. In the absence of written
investment instructions hereunder, funds on deposit in the Series 2004-2
Distribution Account shall remain uninvested.

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

(d)      Series 2004-2 Distribution Account Constitutes Additional
Collateral for Series 2004-2 Notes. In order to secure and provide for
the repayment and payment of the AFC-II Obligations with respect to the Series
2004-2 Notes, AFC-II hereby grants a security interest in and assigns, pledges,
grants, transfers and sets over to the Series 2004-2 Agent, for the benefit of
the Series 2004-2 Noteholders, each Series 2004-2 Interest Rate Swap
Counterparty and the Surety Provider, all of AFC-II’s right, title and interest
in and to the following (whether now or hereafter existing or acquired): (i)
the Series 2004-2 Distribution Account, including any security entitlement
thereto; (ii) all funds on deposit therein from time to time; (iii) all
certificates and instruments, if any, representing or evidencing any or all of
the Series 2004-2 Distribution Account or the funds on deposit therein from
time to time; (iv) all investments made at any time and from time to time with
monies in the Series 2004-2 Distribution Account, whether constituting
securities, instruments, general intangibles, investment property, financial
assets or other property; (v) all interest, dividends, cash, instruments and
other property from time to time received, receivable or otherwise distributed
in respect of or in exchange for the Series 2004-2 Distribution Account, the
funds on deposit therein from time to time or the investments made with such
funds; and (vi) all proceeds of any and all of the foregoing, including,
without limitation, cash (the items in the foregoing clauses (i) through (vi)
are referred to, collectively, as the “Series 2004-2 Distribution Account
Collateral”). The Series 2004-2 Agent shall possess all right, title and
interest in all funds on deposit from time to time in the Series 2004-2
Distribution Account and in and to all proceeds thereof, and shall be the only
person authorized to originate entitlement orders in respect of the Series
2004-2 Distribution Account. The Series 2004-2 Distribution Account Collateral
shall be under the sole dominion and control of the Series 2004-2 Agent for the
benefit of the Series 2004-2 Noteholders, each Series 2004-2 Interest

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Rate Swap
Counterparty and the Surety Provider. The Series 2004-2 Agent hereby agrees
(i) to act as the securities intermediary (as defined in Section 8-102(a)(14)
of the New York UCC) with respect to the Series 2004-2 Distribution Account;
(ii) that each item of property (whether investment property, financial asset,
security, instrument or cash) credited to the Series 2004-2 Distribution
Account shall be treated as a financial asset (as defined in Section
8-102(a)(9) of the New York UCC) and (iii) to comply with any entitlement order
(as defined in Section 8-102(a)(8) of the New York UCC) issued by the Trustee.

Section 2.10 Series 2004-2 Interest Rate Swaps. (a) On the
Series 2004-2 Closing Date, AFC-II shall enter into one or more interest rate
swaps acceptable to the Surety Provider in respect of the Class A-2 Notes
satisfying the requirements of clause (i) below and one or more interest rate
swaps acceptable to the Surety Provider in respect of the Class A-3 Notes
satisfying the requirements of clause (ii) below, in each case with a Qualified
Interest Rate Swap Counterparty (each a “Series 2004-2 Interest Rate Swap”):

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

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

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

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Rate Swap
Counterparty and (iii) 1% of the notional amount of such Series 2004-2 Interest
Rate Swap.

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

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

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

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

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

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

(iv)      money market funds or eurodollar time deposits which are not
rated at least “AAA” by Standard & Poor’s;

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

(vi)      any investment, instrument or security not otherwise listed in
clause (i) through (vi) of the definition of “Permitted Investments” in
the Base Indenture that is not approved in writing by the Surety
Provider.

Section 2.12 Series 2004-2 Demand Notes Constitute Additional
Collateral for Series 2004-2 Notes. In order to secure and provide for
the repayment and payment of the AFC-II Obligations with respect to the Series
2004-2 Notes, AFC-II hereby grants a security interest in and assigns, pledges,
grants, transfers and sets over to the Trustee, for the benefit of the Series
2004-2 Noteholders, each Series 2004-2 Interest Rate Swap Counterparty and the
Surety Provider, all of AFC-II’s right, title and interest in and to the
following (whether now or hereafter existing or acquired): (i) the Series
2004-2 Demand Notes; (ii) all certificates and instruments, if any,
representing or evidencing the Series 2004-2 Demand Notes; and (iii) all
proceeds of any and all of the foregoing, including, without limitation, cash.
On the date hereof, AFC-II shall deliver to the Trustee, for the benefit of the
Series 2004-2 Noteholders, each Series 2004-2 Interest Rate Swap Counterparty
and the Surety Provider, each Series 2004-2 Demand Note, endorsed in blank.
The Trustee, for the benefit of the Series 2004-2 Noteholders, each

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Series
2004-2 Interest Rate Swap Counterparty and the Surety Provider, shall be the
only Person authorized to make a demand for payments on the Series 2004-2
Demand Notes.

ARTICLE III

AMORTIZATION EVENTS

In addition to the Amortization Events set forth in Section 9.1 of the
Base Indenture, any of the following shall be an Amortization Event with
respect to the Series 2004-2 Notes and collectively shall constitute the
Amortization Events set forth in Section 9.1(n) of the Base Indenture with
respect to the Series 2004-2 Notes (without notice or other action on the part
of the Trustee or any holders of the Series 2004-2 Notes):

(a)      a Series 2004-2 Enhancement Deficiency shall occur and continue
for at least two (2) Business Days; provided, however,
that such event or condition shall not be an Amortization Event if during
such two (2) Business Day period such Series 2004-2 Enhancement
Deficiency shall have been cured in accordance with the terms and
conditions of the Indenture and the Related Documents;

(b)      the Series 2004-2 Liquidity Amount shall be less than the Series
2004-2 Required Liquidity Amount for at least two (2) Business Days;
provided, however, that such event or condition shall not
be an Amortization Event if during such two (2)
Business Day period such insufficiency shall have been cured in
accordance with the terms and conditions of the Indenture and the Related
Documents;

(c)      the Collection Account, the Series 2004-2 Collection Account,
the Series 2004-2 Excess Collection Account or the Series 2004-2 Reserve
Account shall be subject to an injunction, estoppel or other stay or a
Lien (other than Liens permitted under the Related Documents);

(d)      all principal of and interest on the Class A-1 Notes and the
Class A-2 Notes is not paid in full on or before the Three-Year Notes
Expected Final Distribution Date or all principal of and interest on the
Class A-3 Notes is not paid in full on or before the Class A-3 Expected
Final Distribution Date;

(e)      the Trustee shall make a demand for payment under the Surety
Bond;

(f)      the occurrence of an Event of Bankruptcy with respect to the
Surety Provider;

(g)      the Surety Provider fails to pay a demand for payment in
accordance with the requirements of the Surety Bond;

(h)      any Series 2004-2 Letter of Credit shall not be in full force
and effect for at least two (2) Business Days and (x) either a Series
2004-2 Enhancement Deficiency would result from excluding such Series
2004-2 Letter of Credit from the Series 2004-2

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Enhancement Amount or (y)
the Series 2004-2 Liquidity Amount, excluding therefrom the available
amount under such Series 2004-2 Letter of Credit, would be less than the
Series 2004-2 Required Liquidity Amount;

(i)      from and after the funding of the Series 2004-2 Cash Collateral
Account, the Series 2004-2 Cash Collateral Account shall be subject to an
injunction, estoppel or other stay or a Lien (other than Liens permitted
under the Related Documents) for at least two (2) Business Days and
either (x) a Series 2004-2 Enhancement Deficiency would result from
excluding the Series 2004-2 Available Cash Collateral Account Amount from
the Series 2004-2 Enhancement Amount or (y) the Series 2004-2 Liquidity
Amount, excluding therefrom the Series 2004-2 Available Cash Collateral
Amount, would be less than the Series 2004-2 Required Liquidity Amount;
and

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

ARTICLE IV

RIGHT TO WAIVE PURCHASE RESTRICTIONS

Notwithstanding any provision to the contrary in the Indenture or the
Related Documents, but subject in all respects to the Surety Provider’s rights
under Section 6.11, upon the Trustee’s receipt of notice from any Lessee, any
Borrower or AFC-II (i) to the effect that a Manufacturer Program is no longer
an Eligible Manufacturer Program and that, as a result, the Series 2004-2
Maximum Non-Program Vehicle Amount is or will be exceeded or (ii) that the
Lessees, the Borrowers and AFC-II have determined to increase any Series 2004-2
Maximum Amount, (such notice, a “Waiver Request”), each Series 2004-2
Noteholder may, at its option, waive the Series 2004-2 Maximum Non-Program
Vehicle Amount or any other Series 2004-2 Maximum Amount (collectively, a
“Waivable Amount”) if (i) no Amortization Event exists, (ii) the Requisite
Noteholders and the Surety Provider consent to such waiver and (iii) 60 days’
prior written notice of such proposed waiver is provided to the Rating Agencies
by the Trustee.

Upon receipt by the Trustee of a Waiver Request (a copy of which the
Trustee shall promptly provide to the Rating Agencies), all amounts which would
otherwise be allocated to the Series 2004-2 Excess Collection Account
(collectively, the “Designated Amounts”) from the date the Trustee
receives a Waiver Request through the Consent Period Expiration Date will be
held by the Trustee in the Series 2004-2 Collection Account for ratable
distribution as described below.

-46-

 

Within ten (10) Business Days after the Trustee receives a Waiver Request, the Trustee shall furnish notice thereof to
the Series 2004-2 Noteholders and the Surety Provider, which notice shall be
accompanied by a form of consent (each a “Consent”) in the form of Exhibit B hereto by which the Series 2004-2 Noteholders may, on or before
the Consent Period Expiration Date, consent to waiver of the applicable
Waivable Amount. If the Trustee receives the consent of the Surety Provider
and Consents from the Requisite Noteholders agreeing to waiver of the
applicable Waivable Amount within forty-five (45) days after the Trustee
notifies the Series 2004-2 Noteholders of a Waiver Request (the day on which
such forty-five (45) day period expires, the “Consent Period Expiration Date”), (i) the applicable Waivable Amount shall be deemed waived by the
consenting Series 2004-2 Noteholders, (ii) the Trustee will distribute the
Designated Amounts as set forth below and (iii) the Trustee shall promptly (but
in any event within two days) provide the Rating Agency with notice of such
waiver. Any Series 2004-2 Noteholder from whom the Trustee has not received a
Consent on or before the Consent Period Expiration Date will be deemed not to
have consented to such waiver.

If the Trustee receives Consents from the Requisite Noteholders on or
before the Consent Period Expiration Date, then on the immediately following
Distribution Date, the Trustee will pay the Designated Amounts as follows:

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

(ii)      any remaining Designated Amounts to the Series 2004-2 Excess
Collection Account.

If the amount paid pursuant to clause (i) of the preceding paragraph is
not paid in full on the date specified therein, then on each day following such
Distribution Date, the Administrator will allocate to the Series 2004-2
Collection Account on a daily basis all Designated Amounts collected on such
day. On each following Distribution Date, the Trustee will withdraw a portion
of such Designated Amounts from the Series 2004-2 Collection Account and
deposit the same in the Series 2004-2 Distribution Account for distribution as
follows:

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

(b)      any remaining Designated Amounts to the Series 2004-2 Excess
Collection Account.

If the Requisite Noteholders or the Surety Provider do not timely consent
to such waiver, the Designated Amounts will be re-allocated to the Series
2004-2 Excess Collection Account for allocation and distribution in accordance
with the terms of the Indenture and the Related Documents.

-47-

 

In the event that the Series 2004-2 Rapid Amortization Period shall
commence after receipt by the Trustee of a Waiver Request, all such Designated
Amounts will thereafter be considered Principal Collections allocated to the
Series 2004-2 Noteholders.

ARTICLE V

FORM OF SERIES 2004-2 NOTES

Section 5.1      Restricted Global Series 2004-2 Notes. The Series
2004-2 Notes to be issued in the United States will be issued in book-entry
form and represented by one or more permanent global Notes in fully registered
form without interest coupons (each, a “Restricted Global Class A-1 Note”, a “Restricted Global Class A-2 Note” or a “Restricted
Global Class A-3 Note”, as the case may be), substantially in the forms
set forth in Exhibit A-1-1, A-2-1 and A-3-1 hereto, with such legends
as may be applicable thereto as set forth in the Base Indenture, and will be
sold only in the United States (1) initially to institutional accredited
investors within the meaning of Regulation D under the Securities Act in
reliance on an exemption from the 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 the Series 2004-2 Notes represented thereby,
with the Trustee as custodian for DTC, and registered in the name of Cede as
DTC’s nominee, duly executed by AFC-II and authenticated by the Trustee in the
manner set forth in Section 2.4 of the Base Indenture.

Section 5.2      Temporary Global Series 2004-2 Notes; Permanent Global
Series 2004-2 Notes. The Series 2004-2 Notes to be issued outside the
United States will be issued and sold in transactions outside the United States
in reliance on Regulation S under the Securities Act, as provided in the
applicable note purchase agreement, and shall initially be issued in the form
of one or more temporary notes in registered form without interest coupons
(each, a “Temporary Global Class A-1 Note”, a “Temporary Global
Class A-2 Note” or a “Temporary Global Class A-3 Note”, as the
case may be), substantially in the forms set forth in Exhibits A-1-2, A-2-2
and A-3-2 hereto, which shall be deposited on behalf of the purchasers of
the Series 2004-2 Notes represented thereby with a custodian for, and
registered in the name of a nominee of DTC, for the account of Euroclear Bank
S.A./N.V., as operator of the Euroclear System (“Euroclear”) or for
Clearstream Banking, société anonyme (“Clearstream”), duly executed by
AFC-II and authenticated by the Trustee in the manner set forth in Section 2.4
of the Base Indenture. Interests in a Temporary Global Class A-1 Note, a
Temporary Global Class A-2 Note or a Temporary Global Class A-3 Note will be
exchangeable, in whole or in part, for interests in one or more permanent
global notes in registered form without interest coupons (each, a “
Permanent Global Class A-1 Note”, a “Permanent Global Class A-2 Note” or
a “Permanent Global Class A-3 Note”, as the case may be),
substantially in the form of Exhibits A-1-3, A-2-3 and A-3-3 hereto,
in accordance with the provisions of such Temporary Global Class A-1 Note,
Temporary Global Class A-2 Note or Temporary Global Class A-3 Note and the Base
Indenture (as modified by this Supplement). Interests in a Permanent Global
Class A-1 Note, a Permanent Global Class A-2 Note or a Permanent Global Class
A-3 Note will be exchangeable for definitive Class A-1 Notes, definitive Class
A-2 Notes or definitive Class A-3 Notes, as the case may be, in accordance with the
provisions of such Permanent Global Class A-1 Note, Permanent

-48-

 

Global Class A-2 Note or Permanent Global Class A-3 Note and the Base Indenture (as modified by
this Supplement).

ARTICLE VI

GENERAL

Section 6.1      Optional Repurchase. Each Class of the Series
2004-2 Notes shall be subject to repurchase by AFC-II at its option in
accordance with Section 6.3 of the Base Indenture on any Distribution Date
after the Class A-1 Invested Amount, the Class A-2 Invested Amount or the Class
A-3 Invested Amount, as the case may be, is reduced to an amount less than or
equal to 10% of the Class A-1 Initial Invested Amount, the Class A-2 Initial
Invested Amount or the Class A-3 Initial Invested Amount, as the case may be
(the “Series 2004-2 Repurchase Amount”); provided, however, that as a condition precedent to any such optional repurchase on
any Distribution Date on which no Surety Default has occurred and is
continuing, AFC-II shall have received the consent of the Surety Provider. The
repurchase price for any Series 2004-2 Note shall equal the aggregate
outstanding principal balance of such Series 2004-2 Note (determined after
giving effect to any payments of principal and interest on such Distribution
Date), plus accrued and unpaid interest on such outstanding principal balance.

Section 6.2      Information. The Trustee shall provide to the
Series 2004-2 Noteholders, or their designated agent, and the Surety Provider
copies of all information furnished to the Trustee or AFC-II pursuant to the
Related Documents, as such information relates to the Series 2004-2 Notes or
the Series 2004-2 Collateral. In connection with any Preference Amount payable
under the Surety Bond, the Trustee shall furnish to the Surety Provider its
records evidencing the distributions of principal of and interest on the Series
2004-2 Notes that have been made and subsequently recovered from Series 2004-2
Noteholders and the dates on which such payments were made.

Section 6.3      Exhibits. The following exhibits attached hereto
supplement the exhibits included in the Indenture.

	 	 	 
	Exhibit A-1-1:
	 	Form of Restricted Global Class A-1 Note
	Exhibit A-1-2:
	 	Form of Temporary Global Class A-1 Note
	Exhibit A-1-3:
	 	Form of Permanent Global Class A-1 Note
	Exhibit A-2-1
	 	Form of Restricted Global Class A-2 Note
	Exhibit A-2-2
	 	Form of Temporary Global Class A-2 Note
	Exhibit A-2-3
	 	Form of Permanent Global Class A-2 Note
	Exhibit A-3-1
	 	Form of Restricted Global Class A-3 Note
	Exhibit A-3-2
	 	Form of Temporary Global Class A-3 Note
	Exhibit A-3-3
	 	Form of Permanent Global Class A-3 Note
	Exhibit B:
	 	Form of Consent
	Exhibit C:
	 	Form of Series 2004-2 Demand Note
	Exhibit D:
	 	Form of Letter of Credit
	Exhibit E:
	 	Form of Lease Payment Deficit Notice
	Exhibit F:
	 	Form of Demand Notice

-49-

 

Section 6.4      Ratification of Base Indenture. As supplemented by
this Supplement, the Base Indenture is in all respects ratified and confirmed
and the Base Indenture as so supplemented by this Supplement shall be read,
taken, and construed as one and the same instrument.

Section 6.5      Counterparts. This Supplement may be executed in
any number of counterparts, each of which so executed shall be deemed to be an
original, but all of such counterparts shall together constitute but one and
the same instrument.

Section 6.6      Governing Law. This Supplement shall be construed
in accordance with the law of the State of New York, and the obligations,
rights and remedies of the parties hereto shall be determined in accordance
with such law.

Section 6.7      Amendments. This Supplement may be modified or
amended from time to time with the consent of the Surety Provider and in
accordance with the terms of the Base Indenture; provided, however, that if, pursuant to the terms of the Base Indenture or this Supplement,
the consent of the Required Noteholders is required for an amendment or
modification of this Supplement, such requirement shall be satisfied if such
amendment or modification is consented to by the Series 2004-2 Noteholders
representing more than 50% of the aggregate outstanding principal amount of the
Series 2004-2 Notes affected thereby; provided, further, that
if that consent of the Required Noteholders is required for a proposed
amendment or modification of this Supplement that (i) affects only the Class
A-1 Notes (and does not affect in any material respect the Class A-2 Notes or
the Class A-3 Notes, as evidenced by an opinion of counsel to such effect),
then such requirement shall be satisfied if such amendment or modification is
consented to by the Class A-1 Noteholders representing more than 50% of the
aggregate outstanding principal amount of the Class A-1 Notes (without the
necessity of obtaining the consent of the Required Noteholders in respect of
the Class A-2 Notes or the Class A-3 Notes), (ii) affects only the Class A-2
Notes (and does not affect in material respect the Class A-1 Notes or the Class
A-3 Notes, as evidenced by an opinion of counsel to such effect), then such
requirement shall be satisfied if such amendment or modification is consented
to by the Class A-2 Noteholders representing more than 50% of the aggregate
outstanding principal amount of the Class A-2 Notes (without the necessity of
obtaining the consent of the Required Noteholders in respect of the Class A-1
Notes or the Class A-3 Notes) and (iii) affects only the Class A-3 Notes (and
does not affect in any material respect the Class A-1 Notes or the Class A-2
Notes, as evidenced by an opinion of counsel to such effect), then such requirement shall be satisfied if such amendment or
modification is consented to by the Class A-3 Noteholders representing more
than 50% of the aggregate outstanding principal amount of the Class A-3 Notes
(without the necessity of obtaining the consent of the Required Noteholders in
respect of the Class A-1 Notes or the Class A-2 Notes).

Section 6.8      Discharge of Indenture. Notwithstanding anything to
the contrary contained in the Base Indenture, no discharge of the Indenture
pursuant to Section 11.1(b) of the Base Indenture will be effective as to the
Series 2004-2 Notes without the consent of the Required Noteholders.

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Section 6.9      Notice to Surety Provider and Rating Agencies. The
Trustee shall provide to the Surety Provider and each Rating Agency a copy of
each notice, opinion of counsel, certificate or other item delivered to, or
required to be provided by, the Trustee pursuant to this Supplement or any
other Related Document. Each such opinion of counsel shall be addressed to the
Surety Provider, shall be from counsel reasonably acceptable to the Surety
Provider and shall be in form and substance reasonably acceptable to the Surety
Provider. All such notices, opinions, certificates or other items delivered to
the Surety Provider shall be forwarded to Financial Guaranty Insurance Company,
125 Park Avenue, New York, New York 10017, Attention: General Counsel,
Telephone: (212) 312-3077.

Section 6.10      Certain Rights of Surety Provider. The Surety
Provider shall be deemed to be an Enhancement Provider entitled to receive
confirmation of the rating on the Series 2004-2 Notes (without regard to the
Surety Bond) pursuant to the definition of “Rating Agency Confirmation
Condition.” In addition, the Surety Provider shall be deemed to be an
Enhancement Provider entitled to exercise the consent rights described in
clause (ii) of the definition of “Rating Agency Consent Condition.”

Section 6.11      Surety Provider Deemed Noteholder and Secured Party.
Except for any period during which a Surety Default is continuing, the
Surety Provider shall be deemed to be the holder of 100% of the Series 2004-2
Notes for the purposes of giving any and all consents, waivers (including,
without limitation, pursuant to Article IV and Section 6.7), approvals,
instructions, directions, requests, declarations and/or notices pursuant to the
Base Indenture and this Supplement. Any reference in the Base Indenture or the
Related Documents (including, without limitation, in Sections 2.3, 8.14, 9.1,
9.2 or 12.1 of the Base Indenture) to materially, adversely, or detrimentally
affecting the rights or interests of the Noteholders, or words of similar
meaning, shall be deemed, for purposes of the Series 2004-2 Notes, to refer to
the rights or interests of the Surety Provider. The Surety Provider shall
constitute an “Enhancement Provider” with respect to the Series 2004-2 Notes
for all purposes under the Indenture and the other Related Documents.
Furthermore, the Surety Provider shall be deemed to be a “Secured Party” under
the Base Indenture and the Related Documents to the extent of amounts payable
to the Surety Provider pursuant to this Supplement and the Insurance Agreement
shall constitute an “Enhancement Agreement” with respect to the Series 2004-2
Notes for all purposes under the Indenture and the Related Documents.
Moreover, wherever in the Related Documents money or other property is
assigned, conveyed, granted or held for, a filing is made for, action is taken
for or agreed to be taken for, or a representation or warranty is made for the
benefit of the Noteholders, the Surety Provider shall be deemed to be the
Noteholder with respect to 100% of the Series 2004-2 Notes for such purposes.

Section 6.12      Capitalization of AFC-II. AFC-II agrees that on
the Series 2004-2 Closing Date it will have capitalization in an amount equal
to or greater than 3% of the sum of (x) the Series 2004-2 Invested Amount and
(y) the invested amount of the Series 1998-1 Notes, the Series 2000-2 Notes,
the Series 2000-4 Notes, the Series 2001-1 Notes, the Series 2001-2 Notes, the
Series 2002-1 Notes, the Series 2002-2 Notes, the Series 2002-3 Notes, the
Series 2003-1 Notes, the Series 2003-2 Notes, the Series 2003-3 Notes, the
Series 2003-4 Notes, the Series 2003-5 Notes and the Series 2004-1 Notes.

-51-

 

Section 6.13      Series 2004-2 Required Non-Program Enhancement Percentage.
AFC-II agrees that it will not make any Loan under any Loan
Agreement to finance the acquisition of any Vehicle by AESOP Leasing, AESOP
Leasing II or ARAC, as the case may be, if, after giving effect to the making
of such Loan, the acquisition of such Vehicle and the inclusion of such Vehicle
under the relevant Lease, the Series 2004-2 Required Non-Program Enhancement
Percentage would exceed 25.0%.

Section 6.14      Third Party Beneficiary. The Surety Provider and
each Series 2004-2 Interest Rate Swap Counterparty is an express third party
beneficiary of (i) the Base Indenture to the extent of provisions relating to
any Enhancement Provider and (ii) this Supplement.

Section 6.15      Prior Notice by Trustee to Surety Provider.
Subject to Section 10.1 of the Base Indenture, the Trustee agrees that, so long
as no Amortization Event shall have occurred and be continuing with respect to
any Series of Notes other than the Series 2004-2 Notes, it shall not exercise
any rights or remedies available to it as a result of the occurrence of an
Amortization Event with respect to the Series 2004-2 Notes (except those set
forth in clauses (f) and (g) of Article III) or a Series 2004-2 Limited
Liquidation Event of Default until after the Trustee has given prior written
notice thereof to the Surety Provider and obtained the direction of the
Required Noteholders with respect to the Series 2004-2 Notes. The Trustee
agrees to notify the Surety Provider promptly following any exercise of rights
or remedies available to it as a result of the occurrence of any Amortization
Event or a Series 2004-2 Limited Liquidation Event of Default.

Section 6.16      Effect of Payments by the Surety Provider.
Anything herein to the contrary notwithstanding, any distribution of principal
of or interest on the Series 2004-2 Notes that is made with moneys received
pursuant to the terms of the Surety Bond shall not (except for the purpose of
calculating the Principal Deficit Amount) be considered payment of the Series
2004-2 Notes by AFC-II. The Trustee acknowledges that, without the need for
any further action on the part of the Surety Provider, (i) to the extent the
Surety Provider makes payments, directly or indirectly, on account of principal
of or interest on the Series 2004-2 Notes to the Trustee for the benefit of the
Series 2004-2 Noteholders or to the Series 2004-2 Noteholders (including any
Preference Amounts as defined in the Surety Bond), the Surety Provider will be
fully subrogated to the rights of such Series 2004-2 Noteholders to receive
such principal and interest and will be deemed to the extent of the payments so
made to be a Series 2004-2 Noteholder and (ii) the Surety Provider shall be
paid principal and interest in its capacity as a Series 2004-2 Noteholder until
all such payments by the Surety Provider have been fully reimbursed, but only
from the sources and in the manner provided herein for the distribution of such
principal and interest and in each case only after the Series 2004-2
Noteholders have received all payments of principal and interest due to
them hereunder on the related Distribution Date.

Section 6.17      Series 2004-2 Demand Notes. Other than pursuant to
a demand thereon pursuant to Section 2.5, AFC-II shall not reduce the amount of
the Series 2004-2 Demand Notes or forgive amounts payable thereunder so that
the outstanding principal amount of the Series 2004-2 Demand Notes after such
reduction or forgiveness is less than the Series 2004-2 Letter of Credit
Liquidity Amount. AFC-II shall not agree to any amendment of the

-52-

 

Series 2004-2 Demand Notes without first satisfying the Rating Agency Confirmation Condition
and the Rating Agency Consent Condition.

Section 6.18      Subrogation. In furtherance of and not in
limitation of the Surety Provider’s equitable right of subrogation, each of the
Trustee and AFC-II acknowledge that, to the extent of any payment made by the
Surety Provider under the Surety Bond with respect to interest on or principal
of the Series 2004-2 Notes, including any Preference Amount, as defined in the
Surety Bond, the Surety Provider is to be fully subrogated to the extent of
such payment and any additional interest due on any late payment, to the rights
of the Series 2004-2 Noteholders under the Indenture. Each of AFC-II and the
Trustee agree to such subrogation and, further, agree to take such actions as
the Surety Provider may reasonably request in writing to evidence such
subrogation.

Section 6.19      Termination of Supplement. This Supplement shall
cease to be of further effect when all outstanding Series 2004-2 Notes
theretofore authenticated and issued have been delivered (other than destroyed,
lost, or stolen Series 2004-2 Notes which have been replaced or paid) to the
Trustee for cancellation, AFC-II has paid all sums payable hereunder, the
Surety Provider has been paid all Surety Provider Fees and all other Surety
Provider Reimbursement Amounts due under the Insurance Agreement, the Policy is
no longer in effect, the Series 2004-2 Interest Rate Swaps have been terminated
and there are no amounts due and owing thereunder and, if the Series 2004-2
Demand Note Payment Amount on the Series 2004-2 Letter of Credit Termination
Date was greater than zero, all amounts have been withdrawn from the Series
2004-2 Cash Collateral Account in accordance with Section 2.8(i).

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

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

	 	 	 	 	 
	 	AESOP FUNDING II L.L.C.	 
	 
	 
	 	By:	  /s/ Lori Gebron	 
	 	 	Title: Vice President 	 
	 
	 
	 	THE BANK OF NEW YORK (as successor in interest to the corporate trust administration of Harris Trust and Savings Bank), as Trustee
	 
	 
	 
	 	By:	  /s/ Eric A. Lindahl	 
	 	 	Title: Agent 	 
	 
	 
	 	THE BANK OF NEW YORK, as Series 2004-2 Agent
	 
	 
	 
	 	By:	  /s/ Eric A. Lindahl	 
	 	 	Title:  Agent 	 

 

 

Table of Contents

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	Page
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE I DEFINITIONS	 	 	2
	 
	 	 	 	 	 	 	 	 
	ARTICLE II SERIES 2004-2 ALLOCATIONS	 	 	21
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 2.1	 	Establishment of Series 2004-2 Collection Account, Series 2004-2 Excess Collection Account and Series 2004-2 Accrued Interest Account
	 	 	21
	 
	 	Section 2.2	 	Allocations with Respect to the Series 2004-2 Notes	 	 	22
	 
	 	Section 2.3	 	Payments to Noteholders and Each Series 2004-2 Interest Rate Swap Counterparty
	 	 	26
	 
	 	Section 2.4	 	Payment of Note Interest	 	 	29
	 
	 	Section 2.5	 	Payment of Note Principal	 	 	30
	 
	 	Section 2.6	 	Administrator’s Failure to Instruct the Trustee to Make a Deposit or Payment
	 	 	34
	 
	 	Section 2.7	 	Series-2004-2 Reserve Account	 	 	34
	 
	 	Section 2.8	 	Series 2004-2 Letters of Credit and Series 2004-2 Cash Collateral Account	 	 	36
	 
	 	Section 2.9	 	Series 2004-2 Distribution Account	 	 	41
	 
	 	Section 2.10	 	Series 2004-2 Interest Rate Swaps	 	 	42
	 
	 	Section 2.11	 	Series 2004-2 Accounts Permitted Investments	 	 	44
	 
	 	Section 2.12	 	Series 2004-2 Demand Notes Constitute Additional Collateral for Series 2004-2 Notes
	 	 	44
	 
	 	 	 	 	 	 	 	 
	ARTICLE III AMORTIZATION EVENTS	 	 	44
	 
	 	 	 	 	 	 	 	 
	ARTICLE IV RIGHT TO WAIVE PURCHASE RESTRICTIONS	 	 	46
	 
	 	 	 	 	 	 	 	 
	ARTICLE V FORM OF SERIES 2004-2 NOTES	 	 	47
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 5.1	 	Restricted Global Series 2004-2 Notes	 	 	47
	 
	 	Section 5.2	 	Temporary Global Series 2004-2 Notes; Permanent Global Series 2004-2 Notes
	 	 	48
	 
	 	 	 	 	 	 	 	 
	ARTICLE VI GENERAL	 	 	48
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 6.1	 	Optional Repurchase	 	 	48
	 
	 	Section 6.2	 	Information	 	 	49
	 
	 	Section 6.3	 	Exhibits	 	 	49
	 
	 	Section 6.4	 	Ratification of Base Indenture	 	 	49
	 
	 	Section 6.5	 	Counterparts	 	 	49
	 
	 	Section 6.6	 	Governing Law	 	 	49
	 
	 	Section 6.7	 	Amendments	 	 	49
	 
	 	Section 6.8	 	Discharge of Indenture	 	 	50

(i)

 

Table of Contents

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	Page
	 
	 
	 	Section 6.9	 	Notice to Surety Provider and Rating Agencies	 	 	50
	 
	 	Section 6.10	 	Certain Rights of Surety Provider	 	 	50
	 
	 	Section 6.11	 	Surety Provider Deemed Noteholder and Secured Party	 	 	51
	 
	 	Section 6.12	 	Capitalization of AFC-II	 	 	51
	 
	 	Section 6.13	 	Series 2004-2 Required Non-Program Enhancement Percentage	 	 	51
	 
	 	Section 6.14	 	Third Party Beneficiary	 	 	51
	 
	 	Section 6.15	 	Prior Notice by Trustee to Surety Provider	 	 	51
	 
	 	Section 6.16	 	Effect of Payments by the Surety Provider	 	 	52
	 
	 	Section 6.17	 	Series 2004-2 Demand Notes	 	 	52
	 
	 	Section 6.18	 	Subrogation	 	 	52
	 
	 	Section 6.19	 	Termination of Supplement	 	 	52
	 
	 	Section 6.20	 	Condition to Termination of
AFC-II’s Obligations	 	 	53

(ii)

 

Exhibit A-1-1

        to        

Series 2004-2

Supplement

FORM OF RESTRICTED GLOBAL CLASS A-1 NOTE

REGISTERED $___________*

No. R-

SEE REVERSE FOR CERTAIN CONDITIONS

CUSIP (CINS) NO. 00103R BG 0

ISIN NO. US00103RBG02

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES OR “BLUE SKY” LAWS. THE
HOLDER HEREOF, BY PURCHASING THIS CLASS A-1 NOTE, AGREES FOR THE BENEFIT OF
AESOP FUNDING II L.L.C. (THE “COMPANY”) THAT THIS CLASS A-1 NOTE IS BEING
ACQUIRED FOR ITS OWN ACCOUNT AND NOT WITH A VIEW TO DISTRIBUTION AND MAY BE
RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) TO THE COMPANY (UPON
REDEMPTION THEREOF OR OTHERWISE), (2) TO A PERSON THE TRANSFEROR REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (3)
OUTSIDE THE UNITED STATES TO A NON-U.S. PERSON (AS SUCH TERM IS DEFINED IN
REGULATION S OF THE SECURITIES ACT) IN A TRANSACTION IN COMPLIANCE WITH
REGULATION S OF THE SECURITIES ACT, OR (4) IN A TRANSACTION COMPLYING WITH OR
EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES OR ANY OTHER JURISDICTION. EACH SUCH TRANSFER SHALL BE IN ACCORDANCE
WITH THE BASE INDENTURE, ANY APPLICABLE SUPPLEMENT AND ALL APPLICABLE
SECURITIES LAWS. THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
NOTIFY ANY PURCHASER FROM IT OF THE RESALE RESTRICTIONS SET FORTH ABOVE.

EXCEPT AS OTHERWISE PROVIDED IN SECTION 2.9 OF THE BASE INDENTURE, THIS
CLASS A-1 NOTE MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER
NOMINEE OF THE CLEARING AGENCY OR TO A SUCCESSOR CLEARING AGENCY OR TO A
NOMINEE OF SUCH SUCCESSOR CLEARING AGENCY. UNLESS THIS CLASS A-1 NOTE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), TO AESOP FUNDING II L.L.C. OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CLASS A-1

	*	 	Denominations of $1,000,000 and integral multiples of $200,000.

 

 

Exhibit A-1-1

Page 2

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

THE PRINCIPAL OF THIS CLASS A-1 NOTE IS PAYABLE IN INSTALLMENTS AS SET
FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS CLASS A-1
NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

AESOP FUNDING II L.L.C.

SERIES 2004-2 2.76% RENTAL CAR ASSET BACKED NOTES, CLASS A-1

AESOP FUNDING II L.L.C., a Delaware limited liability company (herein
referred to as the “Company”), for value received, hereby promises to pay to
Cede & Co., or registered assigns, the principal sum of [       ] MILLION DOLLARS,
which amount shall be payable in the amounts and at the times set forth in the
Indenture, provided, however, that the entire unpaid principal amount of this
Class A-1 Note shall be due on the Class A-1 Final Distribution Date, which is
the April 2008 Distribution Date. However, principal with respect to the Class
A-1 Notes may be paid earlier or later under certain limited circumstances
described in the Indenture. The Company will pay interest on this Class A-1
Note at the Class A-1 Note Rate. Such interest shall be payable on each
Distribution Date until the principal of this Class A-1 Note is paid or made
available for payment. Interest on this Class A-1 Note will accrue for each
Distribution Date from the most recent Distribution Date on which interest has
been paid to but excluding such Distribution Date or, if no interest has yet
been paid, from February 18, 2004. Interest with respect to the Class A-1 Notes
will be calculated on the basis of a 360-day year of twelve 30-day months. Such
principal of and interest on this Class A-1 Note shall be paid in the manner
specified on the reverse hereof.

The principal of and interest on this Class A-1 Note are payable in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts. All payments made by the
Company with respect to this Class A-1 Note shall be applied first to interest
due and payable on this Class A-1 Note as provided above and then to the unpaid
principal of this Class A-1 Note. This Class A-1 Note does not represent an
interest in, or an obligation of Original AESOP, AESOP Leasing, AESOP Leasing
II, AFC, AGH, ARAC or any affiliate of Original AESOP, AESOP Leasing, AESOP
Leasing II, AFC, AGH, ARAC other than the Company.

Interests in this Note are exchangeable or transferable in whole or in
part for interests in a Restricted Global Note if this Note is a Temporary
Global Note, or for interests in a
Temporary Global Note or a Permanent Global Note if this Note is a
Restricted Global Note (each as defined in the Base Indenture), in each case of
the same Series and Class, provided that such transfer or exchange complies
with Article 2 of the Base Indenture. Interests in this Note

 

 

Exhibit A-1-1

Page 3

may be exchangeable in whole or in part for duly executed and issued definitive
registered Notes if so provided in Article 2 of the Base Indenture, with the
applicable legends as marked therein, subject to the provisions of the Base
Indenture.

Reference is made to the further provisions of this Class A-1 Note set
forth on the reverse hereof, which shall have the same effect as though fully
set forth on the face of this Class A-1 Note. Although a summary of certain
provisions of the Indenture are set forth below and on the reverse hereof and
made a part hereof, this Class A-1 Note does not purport to summarize the
Indenture and reference is made to the Indenture for information with respect
to the interests, rights, benefits, obligations, proceeds and duties evidenced
hereby and the rights, duties and obligations of AESOP Leasing, AESOP Leasing
II, ARAC and the Trustee. A copy of the Indenture may be requested from the
Trustee by writing to the Trustee at: The Bank of New York, c/o BNY Midwest
Trust Company, 2 North LaSalle Street, 10th Floor, Chicago, Illinois 60602. To
the extent not defined herein, the capitalized terms used herein have the
meanings ascribed to them in the Indenture.

Unless the certificate of authentication hereon has been executed by the
Trustee whose name appears below by manual signature, this Class A-1 Note shall
not be entitled to any benefit under the Indenture referred to on the reverse
hereof, or be valid or obligatory for any purpose.

 

 

Exhibit A-1-1

Page 4

IN WITNESS WHEREOF, the Company has caused this instrument to be signed,
manually or in facsimile, by its Authorized Officer.

	 	 	 	 	 
	Date:                                         	AESOP FUNDING II L.L.C.

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Class A-1 Notes of the Series 2004-2 Notes, a series
issued under the within-mentioned Indenture.

	 	 	 	 	 
	 	THE BANK OF NEW YORK, as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

 

 

Exhibit A-1-1

Page 5

[REVERSE OF CLASS A-1 NOTE]

This Class A-1 Note is one of a duly authorized issue of Class A-1 Notes
of the Company, designated as its Series 2004-2 2.76% Rental Car Asset Backed
Notes, Class A-1 (herein called the “Class A-1 Notes”), all issued
under (i) an Amended and Restated Base Indenture dated as of July 30, 1997
(such Base Indenture, as amended, supplemented or modified (exclusive of any
supplements thereto creating a new Series of Notes), is herein called the “Base Indenture”), between the Company and The Bank of New York as
successor in interest to the corporate trust administration of Harris Trust and
Savings Bank, as trustee (the “Trustee”, which term includes any
successor Trustee under the Base Indenture), and (ii) a Series 2004-2
Supplement dated as of February 18, 2004 (such supplement, as may be amended or
modified, is herein called the “Series 2004-2 Supplement”) among the
Company, the Trustee and The Bank of New York, as Series 2004-2 Agent. The
Base Indenture and the Series 2004-2 Supplement are referred to herein as the
“Indenture”. The Class A-1 Notes are subject to all terms of the
Indenture. All terms used in this Class A-1 Note that are defined in the
Indenture shall have the meanings assigned to them in or pursuant to the
Indenture.

The Class A-1 Notes are and will be equally and ratably secured by the
Series 2004-2 Collateral pledged as security therefor as provided in the
Indenture.

Principal of the Class A-1 Notes will be payable on each Distribution Date
specified in and in the amounts described in the Indenture. “Distribution
Date” means the 20th day of each month, or, if any such date is not a
Business Day, the next succeeding Business Day, commencing March 22, 2004.

Commencing on the Distribution Date following the second Determination
Date during the Class A-1 Controlled Amortization Period or the first
Determination Date after the commencement of the Series 2004-2 Rapid
Amortization Period, payments with respect to principal will be made on the
Class A-1 Notes. As described above, the entire unpaid principal amount of this
Class A-1 Note shall be due and payable on the Class A-1 Final Distribution
Date. Notwithstanding the foregoing, if an Amortization Event, Liquidation
Event of Default, Waiver Event or Series 2004-2 Limited Liquidation Event of
Default shall have occurred and be continuing then, in certain circumstances,
principal on the Class A-1 Notes may be paid earlier, as described in the
Indenture. All principal payments on the Class A-1 Notes shall be made pro rata
to the Noteholders entitled thereto.

Payments of interest on this Class A-1 Note due and payable on each
Distribution Date, together with the installment of principal then due, if any,
to the extent not in full payment of this Class A-1 Note, shall be made by wire
transfer for credit to the account designated by the Holder of record of this
Class A-1 Note (or one or more predecessor Class A-1 Notes) on the Note
Register as of the close of business on each Record Date, except that with
respect to Class A-1 Notes registered on the Record Date in the name of the
nominee of the Clearing Agency (initially, such nominee to be Cede & Co.),
payments will be made by wire transfer in immediately available funds to the
account designated by such nominee. Any reduction in the principal amount of
this Class A-1 Note (or any one or more predecessor Class A-1 Notes) effected
by any payments made on any Distribution Date shall be binding upon all future

 

 

Exhibit A-1-1

Page 6

Holders of this Class A-1 Note and of any Class A-1 Note issued upon the
registration of transfer hereof or in exchange hereof or-in lieu hereof,
whether or not noted thereon.

The Company shall pay interest on overdue installments of interest at the
Class A-1 Note Rate to the extent lawful.

As provided in the Indenture, the Class A-1 Notes may be redeemed, in
whole, but not in part, at the option of the Company on any Distribution Date
if on such Distribution Date the Class A-1 Invested Amount is less than or
equal to 10% of the Class A-1 Initial Invested Amount. The purchase price for
such repurchase of the Class A-1 Notes shall equal the aggregate outstanding
principal balance of such Class A-1 Notes (determined after giving effect to
any payment of principal and interest on such Distribution Date), plus accrued
and unpaid interest on such outstanding Class A-1 Invested Amount.

As provided in the Indenture and subject to certain limitations set forth
therein, the transfer of this Class A-1 Note may be registered on the Note
Register upon surrender of this Class A-1 Note for registration of transfer at
the office or agency designated by the Company pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by, the Holder hereof or his attorney
duly authorized in writing, with such signature guaranteed by an “Eligible
Guarantor Institution” (as defined in Rule 17Ad-15 under the Exchange
Act), and such other documents as the Trustee may reasonably require, and
thereupon one or more new Class A-1 Notes of authorized denominations in the
same aggregate principal amount will be issued to the designated transferee or
transferees. No service charge will be charged for any registration of transfer
or exchange of this Class A-1 Note, but the transferor may be required to pay a
sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any such registration of transfer or exchange.

Each Noteholder or Note Owner by acceptance of a Class A-1 Note or, in the
case of a Note Owner, a beneficial interest in a Class A-1 Note, covenants and
agrees that no recourse may be taken, directly or indirectly, with respect to
the obligations of the Company, AESOP Leasing, AESOP Leasing II, ARAC or the
Trustee on the Class A-1 Notes or under the Indenture or any certificate or
other writing delivered in connection therewith, against (i) the Trustee, AESOP
Leasing, AESOP Leasing II or ARAC in its individual capacity, (ii) any owner of
a beneficial interest in the Company or (iii) any partner, owner, beneficiary,
agent, officer, director or employee of the Trustee, AESOP Leasing, AESOP
Leasing II or ARAC in its individual capacity, any holder of a beneficial
interest in the Company, AESOP Leasing, AESOP Leasing II, ARAC or the Trustee
or of any successor or assign of the Trustee, AESOP Leasing, AESOP Leasing II
or ARAC in its individual capacity, except (a) as any such Person may have
expressly agreed and (b) any such partner, owner or beneficiary shall be fully
liable, to the extent provided by applicable law, for any unpaid consideration
for stock, unpaid capital contribution or failure to pay any installment or
call owing to such entity; provided, however, that nothing contained herein
shall be taken to prevent recourse to, and enforcement against, the assets of
the Company for any and all liabilities, obligations and undertakings contained
in the Indenture or in this Class A-1 Note, subject to Section 13.18 of the
Base Indenture.

 

 

Exhibit A-1-1

Page 7

Each Noteholder or Note Owner, by acceptance of a Note or, in the case of
a Note Owner, a beneficial interest in a Note, covenants and agrees that by
accepting the benefits of the Indenture that such Noteholder or Note Owner, as
the case may be, will not for a period of one year and one day following
payment in full of all Notes institute against the Company, or join in any
institution against the Company of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any United States
Federal or state bankruptcy or similar law in connection with any obligations
relating to the Notes, the Indenture or the Related Documents.

Prior to the due presentment for registration of transfer of this Class
A-1 Note, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Class A-1 Note (as of the day of
determination or as of such other date as may be specified in the Indenture) is
registered as the owner hereof for all purposes, whether or not this Class A-1
Note be overdue, and neither the Company, the Trustee nor any such agent shall
be affected by notice to the contrary.

It is the intent of the Company, each Noteholder and each Note Owner that,
for Federal, state and local income and franchise tax purposes only, the Class
A-1 Notes will evidence indebtedness of the Company secured by the Series
2004-2 Collateral. Each Noteholder and each Note Owner, by the acceptance of
this Class A-1 Note, agrees to treat this Class A-1 Note for Federal, state and
local income and franchise tax purposes as indebtedness of the Company.

The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Series 2004-2 Notes under the
Indenture at any time by the Company with the consent of the Holders of Series
2004-2 Notes representing more than 50% in principal amount of the aggregate
outstanding amount of the Series 2004-2 Notes which are affected by such
amendment or modification. The Indenture also contains provisions permitting
the Holders of Series 2004-2 Notes representing specified percentages of the
aggregate outstanding amount of the Series 2004-2 Notes, on behalf of the
Holders of all the Series 2004-2 Notes, to waive compliance by the Company with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Class A-1 Note (or any one or more predecessor Class A-1 Notes) shall be
conclusive and binding upon such Holder and upon all future Holders of this
Class A-1 Note and of any Class A-1 Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or not notation
of such consent or waiver is made upon this Class A-1 Note. The Indenture also
permits the Trustee to amend or waive certain terms and conditions set forth in
the Indenture without the consent of Holders of the Series 2004-2 Notes issued
thereunder.

The term “Company” as used in this Class A-1 Note includes any successor
to the Company under the Indenture.

The Class A-1 Notes are issuable only in registered form in denominations
as provided in the Indenture, subject to certain limitations set forth therein.

 

 

Exhibit A-1-1

Page 8

This Class A-1 Note and the Indenture shall be construed in accordance
with the law of the State of New York, and the obligations, rights and remedies
of the parties hereunder and thereunder shall be determined in accordance with
such law.

No reference herein to the Indenture and no provision of this Class A-1
Note or of the Indenture shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of and interest on
this Class A-1 Note at the times, place, and rate, and in the coin or currency
herein prescribed.

Interests in this Restricted Global Note may be exchanged for Definitive
Notes, subject to the provisions of the Indenture.

 

 

Exhibit A-1-1

Page 9

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

                                                         

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

 

(name and address of assignee)

the within Class A-1 Note and all rights thereunder, and hereby irrevocably
constitutes and appoints                     , attorney, to transfer said Class
A-1 Note on the books kept for registration thereof, with full power of
substitution in the premises.

	 	 	 	 	 
	 	 	 
	Dated:                    	By:  	
 	 *
	 	 	Signature Guaranteed: 	 
	 	 	 	 
	 	
 	 
	 	 	 	 
	 	
 	 

	*	 	NOTE: The signature to this assignment must correspond with the name of
the registered owner as it appears on the face of the within Note, without
alteration, enlargement or any change whatsoever.

 

 

	 	 	 
	 

	 	Exhibit A-1-2
	

	 	to
	

	 	Series 2004-2
	

	 	Supplement

FORM OF TEMPORARY GLOBAL CLASS A-1 NOTE

	 	 	 
	REGISTERED

	 	$                   **
	No. R-
	 	 

SEE REVERSE FOR CERTAIN CONDITIONS

CUSIP (CINS) NO. U0081G BA 0

ISIN NO. USU0081GBA05

THIS NOTE IS A TEMPORARY GLOBAL NOTE, WITHOUT COUPONS, EXCHANGEABLE FOR A
PERMANENT GLOBAL NOTE WHICH IS, UNDER CERTAIN CIRCUMSTANCES, IN TURN,
EXCHANGEABLE FOR DEFINITIVE NOTES WITHOUT COUPONS. THE RIGHTS ATTACHING TO THIS
TEMPORARY GLOBAL NOTE, AND THE CONDITIONS AND PROCEDURES GOVERNING ITS
EXCHANGE, ARE AS SPECIFIED IN THE INDENTURE (AS DEFINED HEREIN).

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES OR “BLUE SKY”
LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CLASS A-1 NOTE, AGREES FOR THE
BENEFIT OF AESOP FUNDING II L.L.C. (THE “COMPANY”) THAT THIS CLASS A-1
NOTE IS BEING ACQUIRED FOR ITS OWN ACCOUNT AND NOT WITH A VIEW TO DISTRIBUTION
AND MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) TO THE COMPANY
(UPON REDEMPTION THEREOF OR OTHERWISE), (2) TO A PERSON THE TRANSFEROR
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A, (3) OUTSIDE THE UNITED STATES TO A NON-U.S. PERSON (AS SUCH TERM IS
DEFINED IN REGULATION S OF THE SECURITIES ACT) IN A TRANSACTION IN COMPLIANCE
WITH REGULATION S OF THE SECURITIES ACT, OR (4) IN A TRANSACTION COMPLYING WITH
OR EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES OR ANY OTHER JURISDICTION. EACH SUCH TRANSFER SHALL BE IN ACCORDANCE
WITH THE BASE INDENTURE, ANY APPLICABLE SUPPLEMENT AND ALL APPLICABLE
SECURITIES LAWS. THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
NOTIFY ANY PURCHASER FROM IT OF THE RESALE RESTRICTIONS SET FORTH ABOVE.

	**	 	Denominations of $1,000,000 and integral multiples of $200,000.

 

 

Exhibit A-1-2

Page 2

EXCEPT AS OTHERWISE PROVIDED IN SECTION 2.9 OF THE BASE INDENTURE, THIS
CLASS A-1 NOTE MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER
NOMINEE OF THE CLEARING AGENCY OR TO A SUCCESSOR CLEARING AGENCY OR TO A
NOMINEE OF SUCH SUCCESSOR CLEARING AGENCY. UNLESS THIS CLASS A-1 NOTE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), TO AESOP FUNDING II L.L.C. OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CLASS A-1 NOTE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THE PRINCIPAL OF THIS CLASS A-1 NOTE IS PAYABLE IN INSTALLMENTS AS SET
FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS CLASS A-1
NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

INTERESTS IN THIS TEMPORARY GLOBAL NOTE MAY ONLY BE HELD BY NON-U.S.
PERSONS AS SUCH TERM IS DEFINED IN REGULATION S OF THE SECURITIES ACT, AND MAY
ONLY BE HELD IN BOOK-ENTRY FORM THROUGH EUROCLEAR OR CLEARSTREAM.

AESOP FUNDING II L.L.C.

SERIES 2004-2 2.76% RENTAL CAR ASSET BACKED NOTES, CLASS A-1

AESOP FUNDING II L.L.C., a Delaware limited liability company (herein
referred to as the “Company”), for value received, hereby promises to
pay to Cede & Co., or registered assigns, the principal sum of [                   ] MILLION
DOLLARS (or such lesser amount as shall be the outstanding principal amount of
this Temporary Global Note shown in Schedule A hereto), which amount shall be
payable in the amounts and at the times set forth in the Indenture, provided,
however, that the entire unpaid principal amount of this Class A-1 Note shall
be due on the Class A-1 Final Distribution Date, which is the April 2008
Distribution Date. However, principal with respect to the Class A-1 Notes may
be paid earlier or later under certain limited circumstances described in the
Indenture. The Company will pay interest on this Class A-1 Note at the Class
A-1 Note Rate. Such interest shall be payable on each Distribution Date until
the principal of this Class A-1 Note is paid or made available for payment.
Interest on this Class A-1 Note will accrue for each Distribution Date from the
most recent Distribution Date on which interest has been paid to but excluding
such Distribution Date or, if no interest has yet been paid, from February 18,
2004. Interest with respect to the Class A-1 Notes will be calculated on the
basis of a 360-day year of twelve 30-day months. Such principal of and interest
on this Class A-1 Note shall be paid in the manner specified on the reverse
hereof.

 

 

Exhibit A-1-2

Page 3

The principal of and interest on this Class A-1 Note are payable in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts. All payments made by the
Company with respect to this Class A-1 Note shall be applied first to interest
due and payable on this Class A-1 Note as provided above and then to the unpaid
principal of this Class A-1 Note. This Class A-1 Note does not represent an
interest in, or an obligation of Original AESOP, AESOP Leasing, AESOP Leasing
II, AFC, AGH, ARAC or any affiliate of Original AESOP, AESOP Leasing, AESOP
Leasing II, AFC, AGH, ARAC other than the Company.

Interests in this Note are exchangeable or transferable in whole or in
part for interests in a Restricted Global Note if this Note is a Temporary
Global Note, or for interests in a Temporary Global Note or a Permanent Global
Note if this Note is a Restricted Global Note (each as defined in the Base
Indenture), in each case of the same Series and Class, provided that such
transfer or exchange complies with Article 2 of the Base Indenture. Interests
in this Note may be exchangeable in whole or in part for duly executed and
issued definitive registered Notes if so provided in Article 2 of the Base
Indenture, with the applicable legends as marked therein, subject to the
provisions of the Base Indenture.

Reference is made to the further provisions of this Class A-1 Note set
forth on the reverse hereof, which shall have the same effect as though fully
set forth on the face of this Class A-1 Note. Although a summary of certain
provisions of the Indenture are set forth below and on the reverse hereof and
made a part hereof, this Class A-1 Note does not purport to summarize the
Indenture and reference is made to the Indenture for information with respect
to the interests, rights, benefits, obligations, proceeds and duties evidenced
hereby and the rights, duties and obligations of AESOP Leasing, AESOP Leasing
II, ARAC and the Trustee. A copy of the Indenture may be requested from the
Trustee by writing to the Trustee at: The Bank of New York, c/o BNY Midwest
Trust Company, 2 North LaSalle Street, 10th Floor, Chicago, Illinois 60602. To
the extent not defined herein, the capitalized terms used herein have the
meanings ascribed to them in the Indenture.

Unless the certificate of authentication hereon has been executed by the
Trustee whose name appears below by manual signature, this Class A-1 Note shall
not be entitled to any benefit under the Indenture referred to on the reverse
hereof, or be valid or obligatory for any purpose.

 

 

Exhibit A-1-2

Page 4

IN WITNESS WHEREOF, the Company has caused this instrument to be signed,
manually or in facsimile, by its Authorized Officer.

	 	 	 	 	 
	Date:                    	AESOP FUNDING II L.L.C.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Class A-1 Notes of the Series 2004-2 Notes, a series
issued under the within-mentioned Indenture.

	 	 	 	 	 
	 	THE BANK OF NEW YORK, as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

 

 

Exhibit A-1-2

Page 5

[REVERSE OF CLASS A-1 NOTE]

This Class A-1 Note is one of a duly authorized issue of Class A-1 Notes
of the Company, designated as its Series 2004-2 2.76% Rental Car Asset Backed
Notes, Class A-1 (herein called the “Class A-1 Notes”), all issued
under (i) an Amended and Restated Base Indenture dated as of July 30, 1997
(such Base Indenture, as amended, supplemented or modified (exclusive of any
supplements thereto creating a new Series of Notes), is herein called the “Base Indenture”), between the Company and The Bank of New York as
successor in interest to the corporate trust administration of Harris Trust
and Savings Bank, as trustee (the “Trustee”, which term includes any
successor Trustee under the Base Indenture), and (ii) a Series 2004-2
Supplement dated as of February 18, 2004 (such supplement, as may be amended or
modified, is herein called the “Series 2004-2 Supplement”) among the
Company, the Trustee and The Bank of New York, as Series 2004-2 Agent. The Base
Indenture and the Series 2004-2 Supplement are referred to herein as the “Indenture”. The Class A-1 Notes are subject to all terms of the
Indenture. All terms used in this Class A-1 Note that are defined in the
Indenture shall have the meanings assigned to them in or pursuant to the
Indenture.

The Class A-1 Notes are and will be equally and ratably secured by the
Series 2004-2 Collateral pledged as security therefor as provided in the
Indenture.

Principal of the Class A-1 Notes will be payable on each Distribution Date
specified in and in the amounts described in the Indenture. “Distribution
Date” means the 20th day of each month, or, if any such date is not a
Business Day, the next succeeding Business Day, commencing March 22, 2004.

Commencing on the Distribution Date following the second Determination
Date during the Class A-1 Controlled Amortization Period or the first
Determination Date after the commencement of the Series 2004-2 Rapid
Amortization Period, payments with respect to principal will be made on the
Class A-1 Notes. As described above, the entire unpaid principal amount of this
Class A-1 Note shall be due and payable on the Class A-1 Final Distribution
Date. Notwithstanding the foregoing, if an Amortization Event, Liquidation
Event of Default, Waiver Event or Series 2004-2 Limited Liquidation Event of
Default shall have occurred and be continuing then, in certain circumstances,
principal on the Class A-1 Notes may be paid earlier, as described in the
Indenture. All principal payments on the Class A-1 Notes shall be made pro
rata to the Noteholders entitled thereto.

Payments of interest on this Class A-1 Note due and payable on each
Distribution Date, together with the installment of principal then due, if any,
to the extent not in full payment of this Class A-1 Note, shall be made by wire
transfer for credit to the account designated by the Holder of record of this
Class A-1 Note (or one or -more predecessor Class A-1 Notes) on the Note
Register as of the close of business on each Record Date, except that with
respect to Class A-1 Notes registered on the Record Date in the name of the
nominee of the Clearing Agency (initially, such nominee to be Cede & Co.),
payments will be made by wire transfer in immediately available funds to the
account designated by such nominee. Any reduction in the
principal amount of this Class A-1 Note (or any one or more predecessor
Class A-1 Notes)

 

 

Exhibit A-1-2

Page 6

effected by any payments made on any Distribution Date shall
be binding upon all future Holders of this Class A-1 Note and of any Class A-1
Note issued upon the registration of transfer hereof or in exchange hereof or
in lieu hereof, whether or not noted thereon.

The Company shall pay interest on overdue installments of interest at the
Class A-1 Note Rate to the extent lawful.

As provided in the Indenture, the Class A-1 Notes may be redeemed, in
whole, but not in part, at the option of the Company on any Distribution Date
if on such Distribution Date the Class A-1 Invested Amount is less than or
equal to 10% of the Class A-1 Initial Invested Amount. The purchase price for
such repurchase of the Class A-1 Notes shall equal the aggregate outstanding
principal balance of such Class A-1 Notes (determined after giving effect to
any payment of principal and interest on such Distribution Date), plus accrued
and unpaid interest on such outstanding Class A-1 Invested Amount.

As provided in the Indenture and subject to certain limitations set forth
therein, the transfer of this Class A-1 Note may be registered on the Note
Register upon surrender of this Class A-1 Note for registration of transfer at
the office or agency designated by the Company pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by, the Holder hereof or his attorney
duly authorized in writing, with such signature guaranteed by an “Eligible
Guarantor Institution” (as defined in Rule 17Ad-15 under the Exchange
Act), and such other documents as the Trustee may reasonably require, and
thereupon one or more new Class A-1 Notes of authorized denominations in the
same aggregate principal amount will be issued to the designated transferee or
transferees. No service charge will be charged for any registration of transfer
or exchange of this Class A-1 Note, but the transferor may be required to pay a
sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any such registration of transfer or exchange.

Each Noteholder or Note Owner by acceptance of a Class A-1 Note or, in the
case of a Note Owner, a beneficial interest in a Class A-1 Note, covenants and
agrees that no recourse may be taken, directly or indirectly, with respect to
the obligations of the Company, AESOP Leasing, AESOP Leasing II, ARAC or the
Trustee on the Class A-1 Notes or under the Indenture or any certificate or
other writing delivered in connection therewith, against (i) the Trustee, AESOP
Leasing, AESOP Leasing II or ARAC in its individual capacity, (ii) any owner of
a beneficial interest in the Company or (iii) any partner, owner, beneficiary,
agent, officer, director or employee of the Trustee, AESOP Leasing, AESOP
Leasing II or ARAC in its individual capacity, any holder of a beneficial
interest in the Company, AESOP Leasing, AESOP Leasing II, ARAC or the Trustee
or of any successor or assign of the Trustee, AESOP Leasing, AESOP Leasing II
or ARAC in its individual capacity, except (a) as any such Person may have
expressly agreed and (b) any such partner, owner or beneficiary shall be fully
liable, to the extent provided by applicable law, for any unpaid consideration
for stock, unpaid capital contribution or failure to pay any installment or
call owing to such entity; provided, however, that nothing contained herein
shall be taken to prevent recourse to, and enforcement against, the assets of
the Company for any and all liabilities, obligations and undertakings contained
in the Indenture or in this Class A-1 Note, subject to Section 13.18 of the
Base Indenture.

 

 

Exhibit A-1-2

Page 7

Each Noteholder or Note Owner, by acceptance of a Note or, in the case of
a Note Owner, a beneficial interest in a Note, covenants and agrees that by
accepting the benefits of the Indenture that such Noteholder or Note Owner, as
the case may be, will not for a period of one year and one day following
payment in full of all Notes institute against the Company, or join in any
institution against the Company of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any United States
Federal or state bankruptcy or similar law in connection with any obligations
relating to the Notes, the Indenture or the Related Documents.

Prior to the due presentment for registration of transfer of this Class
A-1 Note, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Class A-1 Note (as of the day of
determination or as of such other date as may be specified in the Indenture) is
registered as the owner hereof for all purposes, whether or not this Class A-1
Note be overdue, and neither the Company, the Trustee nor any such agent shall
be affected by notice to the contrary.

It is the intent of the Company, each Noteholder and each Note Owner that,
for Federal, state and local income and franchise tax purposes only, the Class
A-1 Notes will evidence indebtedness of the Company secured by the Series
2004-2 Collateral. Each Noteholder and each Note Owner, by the acceptance of
this Class A-1 Note, agrees to treat this Class A-1 Note for Federal, state and
local income and franchise tax purposes as indebtedness of the Company.

Each Holder of this Note shall provide to the Trustee at least annually an
appropriate statement (on Internal Revenue Service Form W-8 or suitable
substitute,) with respect to United States federal income tax and withholding
tax, signed under penalties of perjury, certifying that the beneficial owner of
this Note is a non-U.S. person and providing the Noteholder’s name and address.
If the information provided in the statement changes, the Noteholder shall so
inform the Trustee within 30 days of such change.

The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Series 2004-2 Notes under the
Indenture at any time by the Company with the consent of the Holders of Series
2004-2 Notes representing more than 50% in principal amount of the aggregate
outstanding amount of the Series-2004-2 Notes which are affected by such
amendment or modification. The Indenture also contains provisions permitting
the Holders of Series 2004-2 Notes representing specified percentages of the
aggregate outstanding amount of the Series 2004-2 Notes, on behalf of the
Holders of all the Series 2004-2 Notes, to waive compliance by the Company with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Class A-1 Note (or any one or more predecessor Class A-1 Notes) shall be
conclusive and binding upon such Holder and upon all future Holders of this
Class A-1 Note and of any Class A-1 Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or not notation
of such consent or waiver is made upon this Class A-1 Note. The Indenture also
permits the Trustee to amend or waive certain terms and conditions set forth in
the Indenture without the consent of Holders of the Series 2004-2 Notes issued
thereunder.

 

 

Exhibit A-1-2

Page 8

The term “Company” as used in this Class A-1 Note includes any successor
to the Company under the Indenture.

The Class A-1 Notes are issuable only in registered form in denominations
as provided in the Indenture, subject to certain limitations set forth therein.

This Class A-1 Note and the Indenture shall be construed in accordance
with the law of the State of New York, and the obligations, rights and remedies
of the parties hereunder and thereunder shall be determined in accordance with
such law.

No reference herein to the Indenture and no provision of this Class A-1
Note or of the Indenture shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of and interest on
this Class A-1 Note at the times, place, and rate, and in the coin or currency
herein prescribed.

Prior to the Exchange Date (as defined below), payments (if any) on this
Temporary Global Note will only be paid to the extent that there is presented
by Clearstream Banking, socit anonyme (“Clearstream”), or Euroclear
Bank S.A./N.V., as operator of the Euroclear System (“Euroclear”) to
the Trustee at its office in London a certificate, substantially in the form
set out in  Exhibit B  to the Base Indenture, to the effect that it has
received from or in respect of a person entitled to a Note (as shown by its
records) a certificate from such person in or substantially in the form of 
Exhibit C  to the Base Indenture. After the Exchange Date the holder of
this Temporary Global Note will not be entitled to receive any payment hereon,
until this Temporary Global Note is exchanged in full for a Permanent Global
Note. This Temporary Global Note shall in all other respects be entitled to the
same benefits as the Permanent Global Notes under the Indenture.

On
or after the date (the “Exchange Date”) which is the date that
is the 40th day after the completion of the distribution of the relevant
Series, interests in this Temporary Global Note may be exchanged (free of
charge) for interests in a Permanent Global Note in the form of  Exhibit
A-1-3  to the Series 2004-2 Supplement upon presentation of this Temporary
Global Note at the office in London of the Trustee (or at such other place
outside the United States of America, its territories and possessions as the
Trustee may agree). The Permanent Global Note shall be so issued and delivered
in exchange for only that portion of this Temporary Global Note in respect of
which there shall have been presented to the Trustee by Euroclear or
Clearstream a certificate, substantially in the form set out in  Exhibit B
 to the Base Indenture, to the effect that it has received from or in
respect of a person entitled to a Note (as shown by its records) a certificate
from such person in or substantially in the form of  Exhibit C  to the
Base Indenture.

On an exchange of the whole of this Temporary Global Note, this Temporary
Global Note shall be surrendered to the Trustee at its office in London. On an
exchange of part only of this Temporary Global Note, details of such exchange
shall be entered by or on behalf of the Company in Schedule A hereto and the
relevant space in Schedule A hereto recording such exchange shall be signed by
or on behalf of the Company. If, following the issue of a Permanent Global Note
in exchange for some of the Class A-1 Notes represented by this Temporary
Global Note, further Notes of this Series are to be exchanged pursuant to this
paragraph, such exchange
may be effected, without the issue of a new Permanent Global Note, by the
Company or its agent

 

 

Exhibit A-1-2

Page 9

endorsing Part I of Schedule A of the Permanent Global
Note previously issued to reflect an increase in the aggregate principal amount
of such Permanent Global Note by an amount equal to the aggregate principal
amount of the additional Notes of this Series to be exchanged.

Interests in this Temporary Global Note will be transferable in accordance
with the rules and procedures for the time being of Euroclear or Clearstream.
Each person who is shown in the records of Euroclear and Clearstream as
entitled to a particular number of Class A-1 Notes by way of an interest in
this Temporary Global Note will be treated by the Company, the Trustee and any
paying agent as the holder of such number of Class A-1 Notes. For purposes of
this Temporary Global Note, the securities account records of Euroclear or
Clearstream shall, in the absence of manifest error, be conclusive evidence of
the identity of the holders of Class A-1 Notes and of the principal amount of
Class A-1 Notes represented by this Temporary Global Note credited to the
securities accounts of such holders of Class A-1 Notes. Any statement issued by
Euroclear or Clearstream to any holder relating to a specified Class A-1 Note
or Class A-1 Notes credited to the securities account of such holder and
stating the principal amount of such Class A-1 Note or Class A-1 Notes and
certified by Euroclear or Clearstream to be a true record of such securities
account shall, in the absence of manifest error, be conclusive evidence of the
records of Euroclear or Clearstream for the purposes of the next preceding
sentence (but without prejudice to any other means of producing such records in
evidence). Notwithstanding any provision to the contrary contained in this
Temporary Global Note, the Company irrevocably agrees, for the benefit of such
holder and its successors and assigns, that, subject to the provisions of the
Indenture, each holder or its successors or assigns may file any claim, take
any action or institute any proceeding to enforce, directly against the
Company, the obligation of the Company hereunder to pay any amount due in
respect of each Class A-1 Note represented by this Temporary Global Note which
is credited to such holder’s securities account with Euroclear or Clearstream
without the production of this Temporary Global Note.

 

 

Exhibit A-1-2

Page 10

SCHEDULE A

 SCHEDULE OF EXCHANGES FOR NOTES 

 REPRESENTED BY A PERMANENT GLOBAL NOTE 

The following exchanges of a part of this Temporary Global Note for Class A-1
Notes represented by a Permanent Global Note have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Part of principal amount	 	 	 	 	 	 	 
	 	 	 	 	of this Temporary Global	 	 	Remaining Principal	 	 	 	 
	 	Date	 	 	Note exchanged for Notes 	 	 	amount of this Temporary	 	 	 	 
	 	exchange	 	 	represented by a 	 	 	 Global Note following	 	 	Notation made by or on	 
	 	made	 	 	Permanent Global Note	 	 	such exchange	 	 	behalf of the ssuer	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

 

 

	 	 	 
	 

		EXHIBIT A-1-3
	

	 	to
	

	 	Series 2004-2
	

	 	Supplement

FORM OF PERMANENT GLOBAL CLASS A-1 NOTE

	 	 	 
	REGISTERED

	 	$                   ***
	 	 	 
	No. R-
	 	 

SEE REVERSE FOR CERTAIN CONDITIONS

CUSIP (CINS) NO. U0081G BA 0

ISIN NO. USU0081GBA05

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES OR “BLUE SKY”
LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CLASS A-1 NOTE, AGREES FOR THE
BENEFIT OF AESOP FUNDING II L.L.C. (THE “COMPANY”) THAT THIS CLASS A-1
NOTE IS BEING ACQUIRED FOR ITS OWN ACCOUNT AND NOT WITH A VIEW TO DISTRIBUTION
AND MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) TO THE COMPANY
(UPON REDEMPTION THEREOF OR OTHERWISE), (2) TO A PERSON THE TRANSFEROR
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A, (3) OUTSIDE THE UNITED STATES TO A NON-U.S. PERSON (AS SUCH TERM IS
DEFINED IN REGULATION S OF THE SECURITIES ACT) IN A TRANSACTION IN COMPLIANCE
WITH REGULATION S OF THE SECURITIES ACT, OR (4) IN A TRANSACTION COMPLYING WITH
OR EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES OR ANY OTHER JURISDICTION. EACH SUCH TRANSFER SHALL BE IN ACCORDANCE
WITH THE BASE INDENTURE, ANY APPLICABLE SUPPLEMENT AND ALL APPLICABLE
SECURITIES LAWS. THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
NOTIFY ANY PURCHASER FROM IT OF THE RESALE RESTRICTIONS SET FORTH ABOVE.

EXCEPT AS OTHERWISE PROVIDED IN SECTION 2.9 OF THE BASE INDENTURE, THIS
CLASS A-1 NOTE MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER
NOMINEE OF THE CLEARING AGENCY OR TO A

	**	 	Denominations of $1,000,000 and integral multiples of $200,000.

 

 

EXHIBIT A-1-3

Page 2

SUCCESSOR CLEARING AGENCY OR TO A NOMINEE OF SUCH SUCCESSOR CLEARING
AGENCY. UNLESS THIS CLASS A-1 NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO
AESOP FUNDING II L.L.C. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CLASS A-1 NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THE PRINCIPAL OF THIS CLASS A-1 NOTE IS PAYABLE IN INSTALLMENTS AS SET
FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS CLASS A-1
NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

AESOP FUNDING II L.L.C.

SERIES 2004-2 2.76% RENTAL CAR ASSET BACKED NOTES,

CLASS A-1

AESOP FUNDING II L.L.C., a Delaware limited liability company (herein
referred to as the “Company”), for value received, hereby promises to
pay to Cede & Co., or registered assigns, the principal sum of [                   ] MILLION
DOLLARS, which amount shall be payable in the amounts and at the times set
forth in the Indenture, provided, however, that the entire unpaid principal
amount of this Class A-1 Note shall be due on the Class A-1 Final Distribution
Date, which is the April 2008 Distribution Date. However, principal with
respect to the Class A-1 Notes may be paid earlier or later under certain
limited circumstances described in the Indenture. The Company will pay interest
on this Class A-1 Note at the Class A-1 Note Rate. Such interest shall be
payable on each Distribution Date until the principal of this Class A-1 Note is
paid or made available for payment. Interest on this Class A-1 Note will accrue
for each Distribution Date from the most recent Distribution Date on which
interest has been paid to but excluding such Distribution Date or, if no
interest has yet been paid, from February 18, 2004. Interest with respect to
the Class A-1 Notes will be calculated on the basis of a 360-day year of twelve
30-day months. Such principal of and interest on this Class A-1 Note shall be
paid in the manner specified on the reverse hereof.

The principal of and interest on this Class A-1 Note are payable in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts. All payments made by the
Company with respect to this Class A-1 Note shall be applied first to interest
due and payable on this Class A-1 Note as provided above and then to the unpaid
principal of this Class A-1 Note. This Class A-l Note does not represent an
interest in, or an obligation of Original AESOP, AESOP Leasing, AESOP Leasing
II, AFC,

 

 

EXHIBIT A-1-3

Page 3

AGH, ARAC or any affiliate of Original AESOP, AESOP Leasing, AESOP Leasing
II, AFC, AGH, ARAC other than the Company.

Reference is made to the further provisions of this Class A-1 Note set
forth on the reverse hereof, which shall have the same effect as though fully
set forth on the face of this Class A-1 Note. Although a summary of certain
provisions of the Indenture are set forth below and on the reverse hereof and
made a part hereof, this Class A-1 Note does not purport to summarize the
Indenture and reference is made to the Indenture for information with respect
to the interests, rights, benefits, obligations, proceeds and duties evidenced
hereby and the rights, duties and obligations of AESOP Leasing, AESOP Leasing
II, ARAC and the Trustee. A copy of the Indenture may be requested from the
Trustee by writing to the Trustee at: The Bank of New York, c/o BNY Midwest
Trust Company, 2 North LaSalle Street, 10th Floor, Chicago, Illinois 60602. To
the extent not defined herein, the capitalized terms used herein have the
meanings ascribed to them in the Indenture.

Unless the certificate of authentication hereon has been executed by the
Trustee whose name appears below by manual signature, this Class A-1 Note shall
not be entitled to any benefit under the Indenture referred to on the reverse
hereof, or be valid or obligatory for any purpose.

 

 

EXHIBIT A-1-3

Page 4

IN WITNESS WHEREOF, the Company has caused this instrument to be signed,
manually or in facsimile, by its Authorized Officer.

	 	 	 	 	 
	Date:                    	AESOP FUNDING II L.L.C.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Class A-1 Notes of the Series 2004-2 Notes, a series
issued under the within-mentioned Indenture.

	 	 	 	 	 
	 	THE BANK OF NEW YORK, as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

 

 

EXHIBIT A-1-3

Page 5

[REVERSE OF CLASS A-1 NOTE]

This Class A-1 Note is one of a duly authorized issue of Class A-1 Notes
of the Company, designated as its Series 2004-2 2.76% Rental Car Asset Backed
Notes, Class A-1 (herein called the “Class A-1 Notes”), all issued
under (i) an Amended and Restated Base Indenture dated as of July 30, 1997
(such Base Indenture, as amended, supplemented or modified (exclusive of any
supplements thereto creating a new Series of Notes), is herein called the “Base Indenture”), between the Company and The Bank of New York as
successor in interest to the corporate trust administration of Harris Trust and
Savings Bank, as trustee (the “Trustee”, which term includes any
successor Trustee under the Base Indenture), and (ii) a Series 2004-2
Supplement dated as of February 18, 2004 (such supplement, as may be amended or
modified, is herein called the “Series 2004-2 Supplement”) among the
Company, the Trustee and The Bank of New York, as Series 2004-2 Agent. The
Base Indenture and the Series 2004-2 Supplement are referred to herein as the
“Indenture”. The Class A-1 Notes are subject to all terms of the
Indenture. All terms used in this Class A-1 Note that are defined in the
Indenture shall have the meanings assigned to them in or pursuant to the
Indenture.

The Class A-1 Notes are and will be equally and ratably secured by the
Series 2004-2 Collateral pledged as security therefor as provided in the
Indenture.

Principal of the Class A-1 Notes will be payable on each Distribution Date
specified in and in the amounts described in the Indenture. “Distribution
Date” means the 20th day of each month, or, if any such date is not a
Business Day, the next succeeding Business Day, commencing March 22, 2004.

Commencing on the Distribution Date following the second Determination
Date during the Class A-1 Controlled Amortization Period or the first
Determination Date after the commencement of the Series 2004-2 Rapid
Amortization Period, payments with respect to principal will be made on the
Class A-1 Notes. As described above, the entire unpaid principal amount of this
Class A-1 Note shall be due and payable on the Class A-1 Final Distribution
Date. Notwithstanding the foregoing, if an Amortization Event, Liquidation
Event of Default, Waiver Event or Series 2004-2 Limited Liquidation Event of
Default shall have occurred and be continuing then, in certain circumstances,
principal on the Class A-1 Notes may be paid earlier, as described in the
Indenture. All principal payments on the Class A-1 Notes shall be made pro rata
to the Noteholders entitled thereto.

Payments of interest on this Class A-1 Note due and payable on each
Distribution Date, together with the installment of principal then due, if any,
to the extent not in full payment of this Class A-1 Note, shall be made by wire
transfer for credit to the account designated by the Holder of record of this
Class A-l Note (or one or more predecessor Class A-1 Notes) on the Note
Register as of the close of business on each Record Date, except that with
respect to Class A-1 Notes registered on the Record Date in the name of the
nominee of the Clearing Agency (initially, such nominee to be Cede & Co.),
payments will be made by wire transfer in immediately available funds to the
account designated by such nominee. Any reduction in the
principal amount of this Class A-1 Note (or any one or more predecessor
Class A-1 Notes)

 

 

EXHIBIT A-1-3

Page 6

effected by any payments made on any Distribution Date shall
be binding upon all future Holders of this Class A-1 Note and of any Class A-1
Note issued upon the registration of transfer hereof or in exchange hereof or
in lieu hereof, whether or not noted thereon.

The Company shall pay interest on overdue installments of interest at the
Class A-1 Note Rate to the extent lawful.

As provided in the Indenture, the Class A-1 Notes may be redeemed, in
whole, but not in part, at the option of the Company on any Distribution Date
if on such Distribution Date the Class A-1 Invested Amount is less than or
equal to 10% of the Class A-1 Initial Invested Amount. The purchase price for
such repurchase of the Class A-1 Notes shall equal the aggregate outstanding
principal balance of such Class A-1 Notes (determined after giving effect to
any payment of principal and interest on such Distribution Date), plus accrued
and unpaid interest on such outstanding Class A-1 Invested Amount.

As provided in the Indenture and subject to certain limitations set forth
therein, the transfer of this Class A-1 Note may be registered on the Note
Register upon surrender of this Class A-1 Note for registration of transfer at
the office or agency designated by the Company pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by, the Holder hereof or his attorney
duly authorized in writing, with such signature guaranteed by an “Eligible
Guarantor Institution” (as defined in Rule 17Ad-15 under the Exchange
Act), and such other documents as the Trustee may reasonably require, and
thereupon one or more new Class A-1 Notes of authorized denominations in the
same aggregate principal amount will be issued to the designated transferee or
transferees. No service charge will be charged for any registration of transfer
or exchange of this Class A-1 Note, but the transferor may be required to pay a
sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any such registration of transfer or exchange.

Each Noteholder or Note Owner by acceptance of a Class A-1 Note or, in the
case of a Note Owner, a beneficial interest in a Class A-1 Note, covenants and
agrees that no recourse may be taken, directly or indirectly, with respect to
the obligations of the Company, AESOP Leasing, AESOP Leasing II, ARAC or the
Trustee on the Class A-1 Notes or under the Indenture or any certificate or
other writing delivered in connection therewith, against (i) the Trustee, AESOP
Leasing, AESOP Leasing II or ARAC in its individual capacity, (ii) any owner of
a beneficial interest in the Company or (iii) any partner, owner, beneficiary,
agent, officer, director or employee of the Trustee, AESOP Leasing, AESOP
Leasing II or ARAC in its individual capacity, any holder of a beneficial
interest in the Company, AESOP Leasing, AESOP Leasing II, ARAC or the Trustee
or of any successor or assign of the Trustee, AESOP Leasing, AESOP Leasing II
or ARAC in its individual capacity, except (a) as any such Person may have
expressly agreed and (b) any such partner, owner or beneficiary shall be fully
liable, to the extent provided by applicable law, for any unpaid consideration
for stock, unpaid capital contribution or failure to pay any installment or
call owing to such entity; provided, however, that nothing contained herein
shall be taken to prevent recourse to, and enforcement against, the assets of
the Company

 

 

EXHIBIT A-1-3

Page 7

for any and all liabilities, obligations and undertakings contained in the
Indenture or in this Class A-1 Note, subject to Section 13.18 of the Base
Indenture.

Each Noteholder or Note Owner, by acceptance of a Note or, in the case of
a Note Owner, a beneficial interest in a Note, covenants and agrees that by
accepting the benefits of the Indenture that such Noteholder or Note Owner, as
the case may be, will not for a period of one year and one day following
payment in full of all Notes institute against the Company, or join in any
institution against the Company of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any United States
Federal or state bankruptcy or similar law in connection with any obligations
relating to the Notes, the Indenture or the Related Documents.

Prior to the due presentment for registration of transfer of this Class
A-1 Note, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Class A-1 Note (as of the day of
determination or as of such other date as may be specified in the Indenture) is
registered as the owner hereof for all purposes, whether or not this Class A-1
Note be overdue, and neither the Company, the Trustee nor any such agent shall
be affected by notice to the contrary.

It is the intent of the Company, each Noteholder and each Note Owner that,
for Federal, state and local income and franchise tax purposes only, the Class
A-1 Notes will evidence indebtedness of the Company secured by the Series
2004-2 Collateral. Each Noteholder and each Note Owner, by the acceptance of
this Class A-1 Note, agrees to treat this Class A-1 Note for Federal, state and
local income and franchise tax purposes as indebtedness of the Company.

Each Holder of this Note shall provide to the Trustee at least annually an
appropriate statement (on Internal Revenue Service Form W-8 or suitable
substitute) with respect to United States federal income tax and withholding
tax, signed under penalties of perjury, certifying that the beneficial owner of
this Note is a non-U.S. person and providing the Noteholder’s name and address.
If the information provided in the statement changes, the Noteholder shall so
inform the Trustee within 30 days of such change.

The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Series 2004-2 Notes under the
Indenture at any time by the Company with the consent of the Holders of Series
2004-2 Notes representing more than 50% in principal amount of the aggregate
outstanding amount of the Series 2004-2 Notes which are affected by such
amendment or modification. The Indenture also contains provisions permitting
the Holders of Series 2004-2 Notes representing specified percentages of the
aggregate outstanding amount of the Series 2004-2 Notes, on behalf of the
Holders of all the Series 2004-2 Notes, to waive compliance by the Company with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Class A-1 Note (or any one or more predecessor Class A-1 Notes) shall be
conclusive and binding upon such Holder and upon all future Holders of this
Class A-1 Note and of any Class A-1 Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof

 

 

EXHIBIT A-1-3

Page 8

whether or not notation of such consent or waiver is made upon this Class
A-1 Note. The Indenture also permits the Trustee to amend or waive certain
terms and conditions set forth in the Indenture without the consent of Holders
of the Class A-1 Notes issued thereunder.

The term “Company” as used in this Class A-1 Note includes any successor
to the Company under the Indenture.

The Class A-1 Notes are issuable only in registered form in denominations
as provided in the Indenture, subject to certain limitations set forth therein.

This Class A-1 Note and the Indenture shall be construed in accordance
with the law of the State of New York, and the obligations, rights and remedies
of the parties hereunder and thereunder shall be determined in accordance with
such law.

No reference herein to the Indenture and no provision of this Class A-1
Note or of the Indenture shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of and interest on
this Class A-1 Note at the times, place, and rate, and in the, coin or currency
herein prescribed.

Interests in this Permanent Global Note will be transferable in accordance
with the rules and procedures for the time being of Clearstream Banking, socit
anonyme (“Clearstream”), or Euroclear Bank S.A./N.V., as operator of
the Euroclear System (“Euroclear”). Each person who is shown in the
records of Euroclear and Clearstream as entitled to a particular number of
Class A-1 Notes by way of an interest in this Permanent Global Note will be
treated by the Trustee and any paying agent as the holder of such number of
Class A-1 Notes. For purposes of this Permanent Global Note, the securities
account records of Euroclear or Clearstream shall, in the absence of manifest
error, be conclusive evidence of the identity of the holders of Class A-1 Notes
and of the principal amount of Class A-1 Notes represented by this Permanent
Global Note credited to the securities accounts of such holders of Class A-1
Notes. Any statement issued by Euroclear or Clearstream to any holder relating
to a specified Class A-1 Note or Class A-1 Notes credited to the securities
account of such holder and stating the principal amount of such Class A-1 Note
or Class A-1 Notes and certified by Euroclear or Clearstream to be a true
record of such securities account shall, in the absence of manifest error, be
conclusive evidence of the records of Euroclear or Clearstream for the purposes
of the next preceding sentence (but without prejudice to any other means of
producing such records in evidence). Notwithstanding any provision to the
contrary contained in this Permanent Global Note, the Company irrevocably
agrees, for the benefit of such holder and its successors and assigns, that,
subject to the provisions of the Indenture, each holder or its successors or
assigns may file any claim, take any action or institute any proceeding to
enforce, directly against the Company, the obligation of the Company hereunder
to pay any amount due in respect of each Class A-1 Note represented by this
Permanent Global Note which is credited to such holder’s securities account
with Euroclear or Clearstream without the production of this Permanent Global
Note.

 

 

EXHIBIT A-1-3

Page 9

Interests in this Permanent Global Note may be exchanged for Definitive
Notes subject to the provisions of the Indenture.

 

 

Exhibit A-2-1

Page 1

FORM OF RESTRICTED GLOBAL CLASS A-2 NOTE

	 	 	 
	REGISTERED

	 	$                   *
	No. R-           
	 	 

SEE REVERSE FOR CERTAIN CONDITIONS

CUSIP (CINS) NO. 00103R BH 8

ISIN NUMBER : US00103RBH84

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES OR “BLUE SKY”
LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CLASS A-2 NOTE, AGREES FOR THE
BENEFIT OF AESOP FUNDING II L.L.C. (THE “COMPANY”) THAT THIS CLASS A-2
NOTE IS BEING ACQUIRED FOR ITS OWN ACCOUNT AND NOT WITH A VIEW TO DISTRIBUTION
AND MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) TO THE COMPANY
(UPON REDEMPTION THEREOF OR OTHERWISE), (2) TO A PERSON THE TRANSFEROR
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A, (3) OUTSIDE THE UNITED STATES TO A NON-U.S. PERSON (AS SUCH TERM IS
DEFINED IN REGULATION S OF THE SECURITIES ACT) IN A TRANSACTION IN COMPLIANCE
WITH REGULATION S OF THE SECURITIES ACT, OR (4) IN A TRANSACTION COMPLYING WITH
OR EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES OR ANY OTHER JURISDICTION. EACH SUCH TRANSFER SHALL BE IN ACCORDANCE
WITH THE BASE INDENTURE, ANY APPLICABLE SUPPLEMENT AND ALL APPLICABLE
SECURITIES LAWS. THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
NOTIFY ANY PURCHASER FROM IT OF THE RESALE RESTRICTIONS SET FORTH ABOVE.

EXCEPT AS OTHERWISE PROVIDED IN SECTION 2.9 OF THE BASE INDENTURE, THIS
CLASS A-2 NOTE MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER
NOMINEE OF THE CLEARING AGENCY OR TO A SUCCESSOR CLEARING AGENCY OR TO A
NOMINEE OF SUCH SUCCESSOR CLEAR-

	*	 	Denominations of $1,000,000 and integral multiples of $200,000.

 

 

Exhibit A-2-1

Page 2

ING AGENCY. UNLESS THIS CLASS A-2 NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
(“DTC”), TO AESOP FUNDING II L.L.C. OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CLASS A-2 NOTE ISSUED IS REGISTERED IN
THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

THE PRINCIPAL OF THIS CLASS A-2 NOTE IS PAYABLE IN INSTALLMENTS AS SET
FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS CLASS A-2
NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

AESOP FUNDING II L.L.C.

SERIES 2004-2 FLOATING RATE RENTAL CAR ASSET

BACKED NOTES, CLASS A-2

AESOP FUNDING II L.L.C., a Delaware limited liability company (herein
referred to as the “Company”), for value received, hereby promises to
pay to Cede & Co., or registered assigns, the principal sum of
[            ]
MILLION DOLLARS, which amount shall be payable in the amounts and at the times
set forth in the Indenture, provided, however, that the entire
unpaid principal amount of this Class A-2 Note shall be due on the Class A-2
Final Distribution Date, which is the April 2008 Distribution Date. However,
principal with respect to the Class A-2 Notes may be paid earlier or later
under certain limited circumstances described in the Indenture. The Company
will pay interest on this Class A-2 Note at the Class A-2 Note Rate. Such
interest shall be payable on each Distribution Date until the principal of this
Class A-2 Note is paid or made available for payment. Interest on this Class
A-2 Note will accrue for each Distribution Date from the most recent
Distribution Date on which interest has been paid to but excluding such
Distribution Date or, if no interest has yet been paid, from February 18, 2004.
Interest with respect to the Class A-2 Notes will be calculated in the manner
provided in the Indenture. Such principal of and interest on this Class A-2
Note shall be paid in the manner specified on the reverse hereof.

The principal of and interest on this Class A-2 Note are payable in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts. All payments made by the
Company with respect to this Class A-2 Note shall be applied first to interest
due and payable on this Class A-2 Note as provided above and then to the unpaid
principal of this Class A-2 Note. This Class A-2 Note does not represent an
interest in, or an obligation of Original AESOP, AESOP Leasing, AESOP Leasing
II, AFC,

 

 

Exhibit A-2-1

Page 3

AGH, ARAC or any affiliate of Original AESOP, AESOP Leasing, AESOP Leasing
II, AFC, AGH, ARAC other than the Company.

Interests in this Note are exchangeable or transferable in whole or in
part for interests in a Restricted Global Note if this Note is a Temporary
Global Note, or for interests in a Temporary Global Note or a Permanent Global
Note if this Note is a Restricted Global Note (each as defined in the Base
Indenture), in each case of the same Series and Class, provided that such
transfer or exchange complies with Article 2 of the Base Indenture. Interests
in this Note may be exchangeable in whole or in part for duly executed and
issued definitive registered Notes if so provided in Article 2 of the Base
Indenture, with the applicable legends as marked therein, subject to the
provisions of the Base Indenture.

Reference is made to the further provisions of this Class A-2 Note set
forth on the reverse hereof, which shall have the same effect as though fully
set forth on the face of this Class A-2 Note. Although a summary of certain
provisions of the Indenture are set forth below and on the reverse hereof and
made a part hereof, this Class A-2 Note does not purport to summarize the
Indenture and reference is made to the Indenture for information with respect
to the interests, rights, benefits, obligations, proceeds and duties evidenced
hereby and the rights, duties and obligations of AESOP Leasing, AESOP Leasing
II, ARAC and the Trustee. A copy of the Indenture may be requested from the
Trustee by writing to the Trustee at: The Bank of New York, c/o BNY Midwest
Trust Company, 2 North LaSalle Street, 10th Floor, Chicago, Illinois 60602.
To the extent not defined herein, the capitalized terms used herein have the
meanings ascribed to them in the Indenture.

Unless the certificate of authentication hereon has been executed by the
Trustee whose name appears below by manual signature, this Class A-2 Note shall
not be entitled to any benefit under the Indenture referred to on the reverse
hereof, or be valid or obligatory for any purpose.

 

 

Exhibit A-2-1

Page 4

IN WITNESS WHEREOF, the Company has caused this instrument to be signed,
manually or in facsimile, by its Authorized Officer.

Date:                   

	 	 	 	 	 
	 	AESOP FUNDING II L.L.C.

 	 
	 	By  	 	 
	 	 	Name:  	 
	 	 	Title:  	 
	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Class A-2 Notes of the Series 2004-2 Notes, a series
issued under the within-mentioned Indenture.

	 	 	 	 	 
	 	THE BANK OF NEW YORK, as Trustee

 	 
	 	By  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

 

 

Exhibit A-2-1

Page 5

	 	 	 	 	 

[REVERSE OF CLASS A-2 NOTE]

This Class A-2 Note is one of a duly authorized issue of Class A-2 Notes
of the Company, designated as its Series 2004-2 Floating Rate Rental Car Asset
Backed Notes, Class A-2 (herein called the “Class A-2-Notes”), all
issued under (i) an Amended and Restated Base Indenture dated as of July 30,
1997 (such Base Indenture, as amended, supplemented or modified (exclusive of
any supplements thereto creating a new Series of Notes), is herein called the
“Base Indenture”), between the Company and The Bank of New York as successor in
interest to the corporate trust administration of Harris Trust and Savings
Bank, as trustee (the “Trustee”, which term includes any successor
Trustee under the Base Indenture), and (ii) a Series 2004-2 Supplement dated as
of February 18, 2004 (such supplement, as may be amended or modified, is herein
called the “Series 2004-2 Supplement”) among the Company, the Trustee
and The Bank of New York, as Series 2004-2 Agent. The Base Indenture and the
Series 2004-2 Supplement are referred to herein as the “Indenture”. The
Class A-2 Notes are subject to all terms of the Indenture. All terms used in
this Class A-2 Note that are defined in the Indenture shall have the meanings
assigned to them in or pursuant to the Indenture.

The Class A-2 Notes are and will be equally and ratably secured by the
Series 2004-2 Collateral pledged as security therefor as provided in the
Indenture.

Principal of the Class A-2 Notes will be payable on each Distribution Date
specified in and in the amounts described in the Indenture. “Distribution
Date” means the 20th day of each month, or, if any such date is not a
Business Day, the next succeeding Business Day, commencing March 22, 2004.

Commencing on the Distribution Date following the second Determination
Date during the Class A-2 Controlled Amortization Period or the first
Determination Date after the commencement of the Series 2004-2 Rapid
Amortization Period, payments with respect to principal will be made on the
Class A-2 Notes. As described above, the entire unpaid principal amount of
this Class A-2 Note shall be due and payable on the Class A-2 Final
Distribution Date. Notwithstanding the foregoing, if an Amortization Event,
Liquidation Event of Default, Waiver Event or Series 2004-2 Limited Liquidation
Event of Default shall have occurred and be continuing then, in certain
circumstances, principal on the Class A-2 Notes may be paid earlier, as
described in the Indenture. All principal payments on the Class A-2 Notes
shall be made pro rata to the Noteholders entitled thereto.

Payments of interest on this Class A-2 Note due and payable on each
Distribution Date, together with the installment of principal then due, if any,
to the extent not in full payment of this Class A-2 Note, shall be made by wire
transfer for credit to the account designated by the Holder of record of this
Class A-2 Note (or one or more predecessor Class A-2 Notes) on the Note
Register as of the close of business on each Record Date, except that with
respect to Class A-2 Notes registered on the Record Date in the name of the
nominee of the Clearing Agency (initially, such nominee to be Cede & Co.),
payments will be made by wire transfer in immediately available funds to the
account designated by such nominee. Any reduction in the principal
amount of this Class A-2 Note (or any one or more predecessor Class A-2 Notes) effected by any

 

 

Exhibit A-2-1

Page 6

payments made on any Distribution Date shall be binding
upon all future Holders of this Class A-2 Note and of any Class A-2 Note issued
upon the registration of transfer hereof or in exchange hereof or in lieu
hereof, whether or not noted thereon.

The Company shall pay interest on overdue installments of interest at the
Class A-2 Note Rate to the extent lawful.

As provided in the Indenture, the Class A-2 Notes may be redeemed, in
whole, but not in part, at the option of the Company on any Distribution Date
if on such Distribution Date the Class A-2 Invested Amount is less than or
equal to 10% of the Class A-2 Initial Invested Amount. The purchase price for
such repurchase of the Class A-2 Notes shall equal the aggregate outstanding
principal balance of such Class A-2 Notes (determined after giving effect to
any payment of principal and interest on such Distribution Date), plus accrued
and unpaid interest on such outstanding Class A-2 Invested Amount.

As provided in the Indenture and subject to certain limitations set forth
therein, the transfer of this Class A-2 Note may be registered on the Note
Register upon surrender of this Class A-2 Note for registration of transfer at
the office or agency designated by the Company pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by, the Holder hereof or his attorney
duly authorized in writing, with such signature guaranteed by an “Eligible
Guarantor Institution” (as defined in Rule 17Ad-15 under the Exchange Act),
and such other documents as the Trustee may reasonably require, and thereupon
one or more new Class A-2 Notes of authorized denominations in the same
aggregate principal amount will be issued to the designated transferee or
transferees. No service charge will be charged for any registration of
transfer or exchange of this Class A-2 Note, but the transferor may be required
to pay a sum sufficient to cover any tax or other governmental charge that may
be imposed in connection with any such registration of transfer or exchange.

Each Noteholder or Note Owner by acceptance of a Class A-2 Note or, in the
case of a Note Owner, a beneficial interest in a Class A-2 Note, covenants and
agrees that no recourse may be taken, directly or indirectly, with respect to
the obligations of the Company, AESOP Leasing, AESOP Leasing II, ARAC or the
Trustee on the Class A-2 Notes or under the Indenture or any certificate or
other writing delivered in connection therewith, against (i) the Trustee, AESOP
Leasing, AESOP Leasing II or ARAC in its individual capacity, (ii) any owner of
a beneficial interest in the Company or (iii) any partner, owner, beneficiary,
agent, officer, director or employee of the Trustee, AESOP Leasing, AESOP
Leasing II or ARAC in its individual capacity, any holder of a beneficial
interest in the Company, AESOP Leasing, AESOP Leasing II, ARAC or the Trustee
or of any successor or assign of the Trustee, AESOP Leasing, AESOP Leasing II
or ARAC in its individual capacity, except (a) as any such Person may have
expressly agreed and (b) any such partner, owner or beneficiary shall be fully
liable, to the extent provided by applicable law, for any unpaid consideration
for stock, unpaid capital contribution or failure to pay any installment or
call owing to such entity; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement
against, the assets of the Company

 

 

Exhibit A-2-1

Page 7

for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Class A-2 Note, subject to
Section 13.18 of the Base Indenture.

Each Noteholder or Note Owner, by acceptance of a Note or, in the case of
a Note Owner, a beneficial interest in a Note, covenants and agrees that by
accepting the benefits of the Indenture that such Noteholder or Note Owner, as
the case may be, will not for a period of one year and one day following
payment in full of all Notes institute against the Company, or join in any
institution against the Company of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any United States
Federal or state bankruptcy or similar law in connection with any obligations
relating to the Notes, the Indenture or the Related Documents.

Prior to the due presentment for registration of transfer of this Class
A-2 Note, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Class A-2 Note (as of the day of
determination or as of such other date as may be specified in the Indenture) is
registered as the owner hereof for all purposes, whether or not this Class A-2
Note be overdue, and neither the Company, the Trustee nor any such agent shall
be affected by notice to the contrary.

It is the intent of the Company, each Noteholder and each Note Owner that,
for Federal, state and local income and franchise tax purposes only, the Class
A-2 Notes will evidence indebtedness of the Company secured by the Series
2004-2 Collateral. Each Noteholder and each Note Owner, by the acceptance of
this Class A-2 Note, agrees to treat this Class A-2 Note for Federal, state and
local income and franchise tax purposes as indebtedness of the Company.

The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Series 2004-2 Notes under the
Indenture at any time by the Company with the consent of the Holders of Series
2004-2 Notes representing more than 50% in principal amount of the aggregate
outstanding amount of the Series 2004-2 Notes which are affected by such
amendment or modification. The Indenture also contains provisions permitting
the Holders of Series 2004-2 Notes representing specified percentages of the
aggregate outstanding amount of the Series 2004-2 Notes, on behalf of the
Holders of all the Series 2004-2 Notes, to waive compliance by the Company with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Class A-2 Note (or any one or more predecessor Class A-2 Notes) shall be
conclusive and binding upon such Holder and upon all future Holders of this
Class A-2 Note and of any Class A-2 Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or not notation
of such consent or waiver is made upon this Class A-2 Note. The Indenture also
permits the Trustee to amend or waive certain terms and conditions set forth in
the Indenture without the consent of Holders of the Series 2004-2 Notes issued
thereunder.

The term “Company” as used in this Class A-2 Note includes any successor
to the Company under the Indenture.

 

 

Exhibit A-2-1

Page 8

The Class A-2 Notes are issuable only in registered form in denominations
as provided in the Indenture, subject to certain limitations set forth therein.

This Class A-2 Note and the Indenture shall be construed in accordance
with the law of the State of New York and the obligations, rights and remedies
of the parties hereunder and thereunder shall be determined in accordance with
such law.

No reference herein to the Indenture and no provision of this Class A-2
Note or of the Indenture shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of and interest on
this Class A-2 Note at the times, place, and rate, and in the coin or currency
herein prescribed.

Interests in this Restricted Global Note may be exchanged for Definitive
Notes, subject to the provisions of the Indenture.

 

 

Exhibit A-2-1

Page 9

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

                                                         

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

(name and address of assignee)

the within Class A-2 Note and all rights thereunder, and hereby irrevocably
constitutes and appoints                    , attorney, to transfer said
Class A-2 Note on the books kept for registration thereof, with full power of
substitution in the premises.

Dated:                    

	 	 	 	 	 
	 	 	 
	 	By  	1 
	 	 	
	 
	 	 	 
	 	 	Signature Guaranteed:	 
	 	 	 
	 	 	
 

	 

1          NOTE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note, without
alteration, enlargement or any change whatsoever.

 

 

	 	 	 
	 	 	EXHIBIT A-2-2
to
Series 2004-2
Supplement

FORM OF TEMPORARY GLOBAL CLASS A-2 NOTE

	 	 	 
	REGISTERED

	 	$                   **
	 
No. R-
	 	 

SEE REVERSE FOR CERTAIN CONDITIONS

CUSIP (CINS) NO. U0081G BB 8

ISIN NO. USU0081GBB87

THIS NOTE IS A TEMPORARY GLOBAL NOTE, WITHOUT COUPONS, EXCHANGEABLE FOR A
PERMANENT GLOBAL NOTE WHICH IS, UNDER CERTAIN CIRCUMSTANCES, IN TURN,
EXCHANGEABLE FOR DEFINITIVE NOTES WITHOUT COUPONS. THE RIGHTS ATTACHING TO
THIS TEMPORARY GLOBAL NOTE, AND THE CONDITIONS AND PROCEDURES GOVERNING ITS
EXCHANGE, ARE AS SPECIFIED IN THE INDENTURE (AS DEFINED HEREIN).

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES OR “BLUE SKY”
LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CLASS A-2 NOTE, AGREES FOR THE
BENEFIT OF AESOP FUNDING II L.L.C. (THE “COMPANY”) THAT THIS CLASS A-2
NOTE IS BEING ACQUIRED FOR ITS OWN ACCOUNT AND NOT WITH A VIEW TO DISTRIBUTION
AND MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) TO THE COMPANY
(UPON REDEMPTION THEREOF OR OTHERWISE), (2) TO A PERSON THE TRANSFEROR
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A, (3) OUTSIDE THE UNITED STATES TO A NON-U.S. PERSON (AS SUCH TERM IS
DEFINED IN REGULATION S OF THE SECURITIES ACT) IN A TRANSACTION IN COMPLIANCE
WITH REGULATION S OF THE SECURITIES ACT, OR (4) IN A TRANSACTION COMPLYING WITH
OR EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES OR ANY OTHER JURISDICTION. EACH SUCH TRANSFER SHALL BE IN ACCORDANCE

	**	 	Denominations of $1,000,000 and integral multiples of $200,000.

 

 

Exhibit A-2-2

Page 2

WITH THE BASE INDENTURE, ANY APPLICABLE SUPPLEMENT AND ALL APPLICABLE
SECURITIES LAWS. THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
NOTIFY ANY PURCHASER FROM IT OF THE RESALE RESTRICTIONS SET FORTH ABOVE.

EXCEPT AS OTHERWISE PROVIDED IN SECTION 2.9 OF THE BASE INDENTURE, THIS
CLASS A-2 NOTE MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER
NOMINEE OF THE CLEARING AGENCY OR TO A SUCCESSOR CLEARING AGENCY OR TO A
NOMINEE OF SUCH SUCCESSOR CLEARING AGENCY. UNLESS THIS CLASS A-2 NOTE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), TO AESOP FUNDING II L.L.C. OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CLASS A-2 NOTE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THE PRINCIPAL OF THIS CLASS A-2 NOTE IS PAYABLE IN INSTALLMENTS AS SET
FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS CLASS A-2
NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

INTERESTS IN THIS TEMPORARY GLOBAL NOTE MAY ONLY BE HELD BY NON-U.S.
PERSONS AS SUCH TERM IS DEFINED IN REGULATION S OF THE SECURITIES ACT, AND MAY
ONLY BE HELD IN BOOK-ENTRY FORM THROUGH EUROCLEAR OR CLEARSTREAM.

AESOP FUNDING II L.L.C.

SERIES 2004-2 FLOATING RATE RENTAL CAR

ASSET BACKED NOTES, CLASS A-2

AESOP FUNDING II L.L.C., a Delaware limited liability company (herein
referred to as the “Company”), for value received, hereby promises to
pay to Cede & Co., or registered assigns, the principal sum of [     ]
MILLION DOLLARS (or such lesser amount as shall be the outstanding principal
amount of this Temporary Global Note shown in Schedule A hereto), which amount
shall be payable in the amounts and at the times set forth in the Indenture,
provided, however, that the entire unpaid principal amount of
this Class A-2 Note shall be due on the Class A-2 Final Distribution Date,
which is the April 2008 Distribution Date. However, principal with respect to
the Class A-2 Notes may be paid earlier or later under certain limited
circumstances described in the Indenture. The Company
will pay interest on this Class A-2 Note

 

 

Exhibit A-2-2

Page 3

at the Class A-2 Note Rate. Such interest shall be payable on each Distribution Date until the principal of this
Class A-2 Note is paid or made available for payment. Interest on this Class
A-2 Note will accrue for each Distribution Date from the most recent
Distribution Date on which interest has been paid to but excluding such
Distribution Date or, if no interest has yet been paid, from February 18, 2004.
Interest with respect to the Class A-2 Notes will be calculated in the manner
provided in the Indenture. Such principal of and interest on this Class A-2
Note shall be paid in the manner specified on the reverse hereof.

The principal of and interest on this Class A-2 Note are payable in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts. All payments made by the
Company with respect to this Class A-2 Note shall be applied first to interest
due and payable on this Class A-2 Note as provided above and then to the unpaid
principal of this Class A-2 Note. This Class A-2 Note does not represent an
interest in, or an obligation of Original AESOP, AESOP Leasing, AESOP Leasing
II, AFC, AGH, ARAC or any affiliate of Original AESOP, AESOP Leasing, AESOP
Leasing II, AFC, AGH, ARAC other than the Company.

Interests in this Note are exchangeable or transferable in whole or in
part for interests in a Restricted Global Note if this Note is a Temporary
Global Note, or for interests in a Temporary Global Note or a Permanent Global
Note if this Note is a Restricted Global Note (each as defined in the Base
Indenture), in each case of the same Series and Class, provided that such
transfer or exchange complies with Article 2 of the Base Indenture. Interests
in this Note may be exchangeable in whole or in part for duly executed and
issued definitive registered Notes if so provided in Article 2 of the Base
Indenture, with the applicable legends as marked therein, subject to the
provisions of the Base Indenture.

Reference is made to the further provisions of this Class A-2 Note set
forth on the reverse hereof, which shall have the same effect as though fully
set forth on the face of this Class A-2 Note. Although a summary of certain
provisions of the Indenture are set forth below and on the reverse hereof and
made a part hereof, this Class A-2 Note does not purport to summarize the
Indenture and reference is made to the Indenture for information with respect
to the interests, rights, benefits, obligations, proceeds and duties evidenced
hereby and the rights, duties and obligations of AESOP Leasing, AESOP Leasing
II, ARAC and the Trustee. A copy of the Indenture may be requested from the
Trustee by writing to the Trustee at: The Bank of New York, c/o BNY Midwest
Trust Company, 2 North LaSalle Street, 10th Floor, Chicago, Illinois 60602. To
the extent not defined herein, the capitalized terms used herein have the
meanings ascribed to them in the Indenture.

Unless the certificate of authentication hereon has been executed by the
Trustee whose name appears below by manual signature, this Class A-2 Note shall
not be entitled to any benefit under the Indenture referred to on the reverse
hereof, or be valid or obligatory for any purpose.

 

 

Exhibit A-2-2

Page 4

IN WITNESS WHEREOF, the Company has caused this instrument to be signed,
manually or in facsimile, by its Authorized Officer.

Date:                                       

	 	 	 	 	 
	 	AESOP FUNDING II L.L.C.

 	 
	 	By  	 	 
	 	 	Name:  	 
	 	 	Title:  	 
	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Class A-2 Notes of the Series 2004-2 Notes, a series
issued under the within-mentioned Indenture.

	 	 	 	 	 
	 	THE BANK OF NEW YORK, as Trustee

 	 
	 	By  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

 

 

Exhibit A-2-2

Page 5

	 	 	 	 	 

[REVERSE OF CLASS A-2 NOTE]

This Class A-2 Note is one of a duly authorized issue of Class A-2 Notes
of the Company, designated as its Series 2004-2 Floating Rate Rental Car Asset
Backed Notes, Class A-2 (herein called the “Class A-2 Notes”), all
issued under (i) an Amended and Restated Base Indenture dated as of July 30,
1997 (such Base Indenture, as amended, supplemented or modified (exclusive of
any supplements thereto creating a new Series of Notes), is herein called the
“Base Indenture”), between the Company and The Bank of New York as
successor in interest to the corporate trust administration of Harris Trust and
Savings Bank, as trustee (the “Trustee”, which term includes any
successor Trustee under the Base Indenture), and (ii) a Series 2004-2
Supplement dated as of February 18, 2004 (such supplement, as may be amended or
modified, is herein called the “Series 2004-2 Supplement”) among the
Company, the Trustee and The Bank of New York, as Series 2004-2 Agent. The
Base Indenture and the Series 2004-2 Supplement are referred to herein as the
“Indenture”. The Class A-2 Notes are subject to all terms of the
Indenture. All terms used in this Class A-2 Note that are defined in the
Indenture shall have the meanings assigned to them in or pursuant to the
Indenture.

The Class A-2 Notes are and will be equally and ratably secured by the
Series 2004-2 Collateral pledged as security therefor as provided in the
Indenture.

Principal of the Class A-2 Notes will be payable on each Distribution Date
specified in and in the amounts described in the Indenture. “Distribution
Date” means the 20th day of each month, or, if any such date is not a
Business Day, the next succeeding Business Day, commencing March 22, 2004.

Commencing on the Distribution Date following the second Determination
Date during the Class A-2 Controlled Amortization Period or the first
Determination Date after the commencement of the Series 2004-2 Rapid
Amortization Period, payments with respect to principal will be made on the
Class A-2 Notes. As described above, the entire unpaid principal amount of
this Class A-2 Note shall be due and payable on the Class A-2 Final
Distribution Date. Notwithstanding the foregoing, if an Amortization Event,
Liquidation Event of Default, Waiver Event or Series 2004-2 Limited Liquidation
Event of Default shall have occurred and be continuing then, in certain
circumstances, principal on the Class A-2 Notes may be paid earlier, as
described in the Indenture. All principal payments on the Class A-2 Notes
shall be made pro rata to the Noteholders entitled thereto.

Payments of interest on this Class A-2 Note due and payable on each
Distribution Date, together with the installment of principal then due, if any,
to the extent not in full payment of this Class A-2 Note, shall be made by wire
transfer for credit to the account designated by the Holder of record of this
Class A-2 Note (or one or more predecessor Class A-2 Notes) on the Note
Register as of the close of business on each Record Date, except that with
respect to Class A-2 Notes registered on the Record Date in the name of the
nominee of the Clearing Agency (initially, such nominee to be Cede & Co.),
payments will be made by wire transfer in immediately available funds to the
account designated by such nominee. Any reduction in the principal
amount of this Class A-2 Note (or any one or more predecessor Class A-2
Notes) effected by any

 

 

Exhibit A-2-2

Page 6

payments made on any Distribution Date shall be binding
upon all future Holders of this Class A-2 Note and of any Class A-2 Note issued
upon the registration of transfer hereof or in exchange hereof or in lieu
hereof, whether or not noted thereon.

The Company shall pay interest on overdue installments of interest at the
Class A-2 Note Rate to the extent lawful.

As provided in the Indenture, the Class A-2 Notes may be redeemed, in
whole, but not in part, at the option of the Company on any Distribution Date
if on such Distribution Date the Class A-2 Invested Amount is less than or
equal to 10% of the Class A-2 Initial Invested Amount. The purchase price for
such repurchase of the Class A-2 Notes shall equal the aggregate outstanding
principal balance of such Class A-2 Notes (determined after giving effect to
any payment of principal and interest on such Distribution Date),
plus accrued and unpaid interest on such outstanding Class A-2 Invested
Amount.

As provided in the Indenture and subject to certain limitations set forth
therein, the transfer of this Class A-2 Note may be registered on the Note
Register upon surrender of this Class A-2 Note for registration of transfer at
the office or agency designated by the Company pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by, the Holder hereof or his attorney
duly authorized in writing, with such signature guaranteed by an “Eligible
Guarantor Institution” (as defined in Rule 17Ad-15 under the Exchange Act),
and such other documents as the Trustee may reasonably require, and thereupon
one or more new Class A-2 Notes of authorized denominations in the same
aggregate principal amount will be issued to the designated transferee or
transferees. No service charge will be charged for any registration of
transfer or exchange of this Class A-2 Note, but the transferor may be required
to pay a sum sufficient to cover any tax or other governmental charge that may
be imposed in connection with any such registration of transfer or exchange.

Each Noteholder or Note Owner by acceptance of a Class A-2 Note or, in the
case of a Note Owner, a beneficial interest in a Class A-2 Note, covenants and
agrees that no recourse may be taken, directly or indirectly, with respect to
the obligations of the Company, AESOP Leasing, AESOP Leasing II, ARAC or the
Trustee on the Class A-2 Notes or under the Indenture or any certificate or
other writing delivered in connection therewith, against (i) the Trustee, AESOP
Leasing, AESOP Leasing II or ARAC in its individual capacity, (ii) any owner of
a beneficial interest in the Company or (iii) any partner, owner, beneficiary,
agent, officer, director or employee of the Trustee, AESOP Leasing, AESOP
Leasing II or ARAC in its individual capacity, any holder of a beneficial
interest in the Company, AESOP Leasing, AESOP Leasing II, ARAC or the Trustee
or of any successor or assign of the Trustee, AESOP Leasing, AESOP Leasing II
or ARAC in its individual capacity, except (a) as any such Person may have
expressly agreed and (b) any such partner, owner or beneficiary shall be fully
liable, to the extent provided by applicable law, for any unpaid consideration
for stock, unpaid capital contribution or failure to pay any installment or
call owing to such entity; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement
against, the assets of the Company

 

 

Exhibit A-2-2

Page 7

for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Class A-2 Note, subject to
Section 13.18 of the Base Indenture.

Each Noteholder or Note Owner, by acceptance of a Note or, in the case of
a Note Owner, a beneficial interest in a Note, covenants and agrees that by
accepting the benefits of the Indenture that such Noteholder or Note Owner, as
the case may be, will not for a period of one year and one day following
payment in full of all Notes institute against the Company, or join in any
institution against the Company of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any United States
Federal or state bankruptcy or similar law in connection with any obligations
relating to the Notes, the Indenture or the Related Documents.

Prior to the due presentment for registration of transfer of this Class
A-2 Note, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Class A-2 Note (as of the day of
determination or as of such other date as may be specified in the Indenture) is
registered as the owner hereof for all purposes, whether or not this Class A-2
Note be overdue, and neither the Company, the Trustee nor any such agent shall
be affected by notice to the contrary.

It is the intent of the Company, each Noteholder and each Note Owner that,
for Federal, state and local income and franchise tax purposes only, the Class
A-2 Notes will evidence indebtedness of the Company secured by the Series
2004-2 Collateral. Each Noteholder and each Note Owner, by the acceptance of
this Class A-2 Note, agrees to treat this Class A-2 Note for Federal, state and
local income and franchise tax purposes as indebtedness of the Company.

Each Holder of this Note shall provide to the Trustee at least annually an
appropriate statement (on Internal Revenue Service Form W-8 or suitable
substitute) with respect to United States federal income tax and withholding
tax, signed under penalties of perjury, certifying that the beneficial owner of
this Note is a non-U.S. person and providing the Noteholder’s name and address.
If the information provided in the statement changes, the Noteholder shall so
inform the Trustee within 30 days of such change.

The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Series 2004-2 Notes under the
Indenture at any time by the Company with the consent of the Holders of Series
2004-2 Notes representing more than 50% in principal amount of the aggregate
outstanding amount of the Series 2004-2 Notes which are affected by such
amendment or modification. The Indenture also contains provisions permitting
the Holders of Series 2004-2 Notes representing specified percentages of the
aggregate outstanding amount of the Series 2004-2 Notes, on behalf of the
Holders of all the Series 2004-2 Notes, to waive compliance by the Company with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Class A-2 Note (or any one or more predecessor Class A-2 Notes) shall be
conclusive and binding upon such Holder and upon all future Holders of this
Class A-2 Note and of any Class A-2 Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or

 

 

Exhibit A-2-2

Page 8

not notation of such consent or waiver is made upon this Class A-2 Note.
The Indenture also permits the Trustee to amend or waive certain terms and
conditions set forth in the Indenture without the consent of Holders of the
Series 2004-2 Notes issued thereunder.

The term “Company” as used in this Class A-2 Note includes any successor
to the Company under the Indenture.

The Class A-2 Notes are issuable only in registered form in denominations
as provided in the Indenture, subject to certain limitations set forth therein.

This Class A-2 Note and the Indenture shall be construed in accordance
with the law of the State of New York and the obligations, rights and remedies
of the parties hereunder and thereunder shall be determined in accordance with
such law.

No reference herein to the Indenture and no provision of this Class A-2
Note or of the Indenture shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of and interest on
this Class A-2 Note at the times, place, and rate, and in the coin or currency
herein prescribed.

Prior to the Exchange Date (as defined below), payments (if any) on this
Temporary Global Note will only be paid to the extent that there is presented
by Clearstream Banking, société anonyme (“Clearstream”), or Euroclear
Bank S.A./N.V., as operator of the Euroclear System (“Euroclear”) to the
Trustee at its office in London a certificate, substantially in the form set
out in Exhibit B to the Base Indenture, to the effect that it has
received from or in respect of a person entitled to a Note (as shown by its
records) a certificate from such person in or substantially in the form of
Exhibit C to the Base Indenture. After the Exchange Date the holder of
this Temporary Global Note will not be entitled to receive any payment hereon,
until this Temporary Global Note is exchanged in full for a Permanent Global
Note. This Temporary Global Note shall in all other respects be entitled to
the same benefits as the Permanent Global Notes under the Indenture.

On or after the date (the “Exchange Date”) which is the date that
is the 40th day after the completion of the distribution of the relevant
Series, interests in this Temporary Global Note may be exchanged (free of
charge) for interests in a Permanent Global Note in the form of Exhibit
A-2-3 to the Series 2004-2 Supplement upon presentation of this Temporary
Global Note at the office in London of the Trustee (or at such other place
outside the United States of America, its territories and possessions as the
Trustee may agree). The Permanent Global Note shall be so issued and delivered
in exchange for only that portion of this Temporary Global Note in respect of
which there shall have been presented to the Trustee by Euroclear or
Clearstream a certificate, substantially in the form set out in Exhibit
B to the Base Indenture, to the effect that it has received from or in
respect of a person entitled to a Note (as shown by its records) a certificate
from such person in or substantially in the form of Exhibit C to the Base
Indenture.

On an exchange of the whole of this Temporary Global Note, this Temporary
Global Note shall be surrendered to the Trustee at its office in London. On an
exchange of part

 

 

Exhibit A-2-2

Page 9

only of this Temporary Global Note, details of such exchange
shall be entered by or on behalf of the Company in Schedule A hereto and the
relevant space in Schedule A hereto recording such exchange shall be signed by
or on behalf of the Company. If, following the issue of a Permanent Global
Note in exchange for some of the Class A-2 Notes represented by this Temporary
Global Note, further Notes of this Series are to be exchanged pursuant to this
paragraph, such exchange may be effected, without the issue of a new Permanent
Global Note, by the Company or its agent endorsing Part I of Schedule A of the
Permanent Global Note previously issued to reflect an increase in the aggregate
principal amount of such Permanent Global Note by an amount equal to the
aggregate principal amount of the additional Notes of this Series to be
exchanged.

Interests in this Temporary Global Note will be transferable in accordance
with the rules and procedures for the time being of Euroclear or Clearstream.
Each person who is shown in the records of Euroclear and Clearstream as
entitled to a particular number of Class A-2 Notes by way of an interest in
this Temporary Global Note will be treated by the Company, the Trustee and any
paying agent as the holder of such number of Class A-2 Notes. For purposes of
this Temporary Global Note, the securities account records of Euroclear or
Clearstream shall, in the absence of manifest error, be conclusive evidence of
the identity of the holders of Class A-2 Notes and of the principal amount of
Class A-2 Notes represented by this Temporary Global Note credited to the
securities accounts of such holders of Class A-2 Notes. Any statement issued
by Euroclear or Clearstream to any holder relating to a specified Class A-2
Note or Class A-2 Notes credited to the securities account of such holder and
stating the principal amount of such Class A-2 Note or Class A-2 Notes and
certified by Euroclear or Clearstream to be a true record of such securities
account shall, in the absence of manifest error, be conclusive evidence of the
records of Euroclear or Clearstream for the purposes of the next preceding
sentence (but without prejudice to any other means of producing such records in
evidence). Notwithstanding any provision to the contrary contained in this
Temporary Global Note, the Company irrevocably agrees, for the benefit of such
holder and its successors and assigns, that, subject to the provisions of the
Indenture, each holder or its successors or assigns may file any claim, take
any action or institute any proceeding to enforce, directly against the
Company, the obligation of the Company hereunder to pay any amount due in
respect of each Class A-2 Note represented by this Temporary Global Note which
is credited to such holder’s securities account with Euroclear or Clearstream
without the production of this Temporary Global Note.

 

 

Exhibit A-2-2

Page 10

SCHEDULE A

SCHEDULE OF EXCHANGES FOR NOTES

REPRESENTED BY A PERMANENT GLOBAL NOTE

The following exchanges of a part of this Temporary Global Note for Class
A-2 Notes represented by a Permanent Global Note have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Part of Principal	 	 	 	 	 	 	 
	 	 	 	 	amount of this	 	 	Remaining	 	 	 	 
	 	 	 	 	Temporary Global	 	 	Principal Amount	 	 	 	 
	 	 	 	 	Note exchanged for	 	 	of this Temporary	 	 	 	 
	 	Date	 	 	Notes represented	 	 	Global Note	 	 	 	 
	 	Exchange	 	 	by a Permanent	 	 	following such	 	 	Notation made by or on	 
	 	Made	 	 	Global Note	 	 	Exchange	 	 	behalf of the Issuer	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

 

 

	 	 	 
	 	 	EXHIBIT A-2-3
to
Series 2004-2
Supplement

FORM OF PERMANENT GLOBAL CLASS A-2 NOTE

	 	 	 
	REGISTERED

	 	$                   ***
	 
No. R-
	 	 

SEE REVERSE FOR CERTAIN CONDITIONS

CUSIP (CINS) NO. U0081G BB 8

ISIN NO. USU0081GBB87

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES OR “BLUE SKY”
LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CLASS A-2 NOTE, AGREES FOR THE
BENEFIT OF AESOP FUNDING II L.L.C. (THE “COMPANY”) THAT THIS CLASS A-2
NOTE IS BEING ACQUIRED FOR ITS OWN ACCOUNT AND NOT WITH A VIEW TO DISTRIBUTION
AND MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) TO THE COMPANY
(UPON REDEMPTION THEREOF OR OTHERWISE), (2) TO A PERSON THE TRANSFEROR
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A, (3) OUTSIDE THE UNITED STATES TO A NON-U.S. PERSON (AS SUCH TERM IS
DEFINED IN REGULATION S OF THE SECURITIES ACT) IN A TRANSACTION IN COMPLIANCE
WITH REGULATION S OF THE SECURITIES ACT, OR (4) IN A TRANSACTION COMPLYING WITH
OR EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES OR ANY OTHER JURISDICTION. EACH SUCH TRANSFER SHALL BE IN ACCORDANCE
WITH THE BASE INDENTURE, ANY APPLICABLE SUPPLEMENT AND ALL APPLICABLE
SECURITIES LAWS. THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
NOTIFY ANY PURCHASER FROM IT OF THE RESALE RESTRICTIONS SET FORTH ABOVE.

	***	 	Denominations of $1,000,000 and integral multiples of $200,000.

 

 

Exhibit A-2-3

Page 2

EXCEPT AS OTHERWISE PROVIDED IN SECTION 2.9 OF THE BASE INDENTURE, THIS
CLASS A-2 NOTE MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER
NOMINEE OF THE CLEARING AGENCY OR TO A SUCCESSOR CLEARING AGENCY OR TO A
NOMINEE OF SUCH SUCCESSOR CLEARING AGENCY. UNLESS THIS CLASS A-2 NOTE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), TO AESOP FUNDING II L.L.C. OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CLASS A-2 NOTE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THE PRINCIPAL OF THIS CLASS A-2 NOTE IS PAYABLE IN INSTALLMENTS AS SET
FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS CLASS A-2
NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

AESOP FUNDING II L.L.C.

SERIES 2004-2 FLOATING RATE RENTAL CAR

ASSET BACKED NOTES, CLASS A-2

AESOP FUNDING II L.L.C., a Delaware limited liability company (herein
referred to as the “Company”), for value received, hereby promises to
pay to Cede & Co., or registered assigns, the principal sum of [   ] MILLION
DOLLARS, which amount shall be payable in the amounts and at the times set
forth in the Indenture, provided, however, that the entire unpaid
principal amount of this Class A-2 Note shall be due on the Class A-2 Final
Distribution Date, which is the April 2008 Distribution Date. However,
principal with respect to the Class A-2 Notes may be paid earlier or later
under certain limited circumstances described in the Indenture. The Company
will pay interest on this Class A-2 Note at the Class A-2 Note Rate. Such
interest shall be payable on each Distribution Date until the principal of this
Class A-2 Note is paid or made available for payment. Interest on this Class
A-2 Note will accrue for each Distribution Date from the most recent
Distribution Date on which interest has been paid to but excluding such
Distribution Date or, if no interest has yet been paid, from February 18, 2004.
Interest with respect to the Class A-2 Notes will be calculated in the manner
provided in the Indenture. Such principal of and interest on this Class A-2
Note shall be paid in the manner specified on the reverse hereof.

The principal of and interest on this Class A-2 Note are payable in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts. All payments made by the
Company with respect to this Class A-2

 

 

Exhibit A-2-3

Page 3

 Note shall be applied first to interest due and payable on this Class A-2
Note as provided above and then to the unpaid principal of this Class A-2 Note.
This Class A-2 Note does not represent an interest in, or an obligation of
Original AESOP, AESOP Leasing, AESOP Leasing II, AFC, AGH, ARAC or any
affiliate of Original AESOP, AESOP Leasing, AESOP Leasing II, AFC, AGH, ARAC
other than the Company.

Reference is made to the further provisions of this Class A-2 Note set
forth on the reverse hereof, which shall have the same effect as though fully
set forth on the face of this Class A-2 Note. Although a summary of certain
provisions of the Indenture are set forth below and on the reverse hereof and
made a part hereof, this Class A-2 Note does not purport to summarize the
Indenture and reference is made to the Indenture for information with respect
to the interests, rights, benefits, obligations, proceeds and duties evidenced
hereby and the rights, duties and obligations of AESOP Leasing, AESOP Leasing
II, ARAC and the Trustee. A copy of the Indenture may be requested from the
Trustee by writing to the Trustee at: The Bank of New York, c/o BNY Midwest
Trust Company, 2 North LaSalle Street, 10th Floor, Chicago, Illinois 60602.
To the extent not defined herein, the capitalized terms used herein have the
meanings ascribed to them in the Indenture.

Unless the certificate of authentication hereon has been executed by the
Trustee whose name appears below by manual signature, this Class A-2 Note shall
not be entitled to any benefit under the Indenture referred to on the reverse
hereof, or be valid or obligatory for any purpose.

 

 

Exhibit A-2-3

Page 4

IN WITNESS WHEREOF, the Company has caused this instrument to be signed,
manually or in facsimile, by its Authorized Officer.

Date:                                       

	 	 	 	 	 
	 	AESOP FUNDING II L.L.C.

 	 
	 	By  	 	 
	 	 	Name:  	 
	 	 	Title:  	 
	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Class A-2 Notes of the Series 2004-2 Notes, a series
issued under the within-mentioned Indenture.

	 	 	 	 	 
	 	THE BANK OF NEW YORK, as Trustee

 	 
	 	By  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

 

 

Exhibit A-2-3

Page 5

	 	 	 	 	 

[REVERSE OF CLASS A-2 NOTE]

This Class A-2 Note is one of a duly authorized issue of Class A-2 Notes
of the Company, designated as its Series 2004-2 Floating Rate Rental Car Asset
Backed Notes, Class A-2 (herein called the “Class A-2 Notes”), all
issued under (i) an Amended and Restated Base Indenture dated as of July 30,
1997 (such Base Indenture, as amended, supplemented or modified (exclusive of
any supplements thereto creating a new Series of Notes), is herein called the
“Base Indenture”), between the Company and The Bank of New York, as
successor in interest to the corporate trust administration of Harris Trust and
Savings Bank, as trustee (the “Trustee”, which term includes any
successor Trustee under the Base Indenture), and (ii) a Series 2004-2
Supplement dated as of February 18, 2004 (such supplement, as may be amended or
modified, is herein called the “Series 2004-2 Supplement”) among the
Company, the Trustee and The Bank of New York, as Series 2004-2 Agent. The
Base Indenture and the Series 2004-2 Supplement are referred to herein as the
“Indenture”. The Class A-2 Notes are subject to all terms of the
Indenture. All terms used in this Class A-2 Note that are defined in the
Indenture shall have the meanings assigned to them in or pursuant to the
Indenture.

The Class A-2 Notes are and will be equally and ratably secured by the
Series 2004-2 Collateral pledged as security therefor as provided in the
Indenture.

Principal of the Class A-2 Notes will be payable on each Distribution Date
specified in and in the amounts described in the Indenture. “Distribution
Date” means the 20th day of each month, or, if any such date is not a
Business Day, the next succeeding Business Day, commencing March 22, 2004.

Commencing on the Distribution Date following the second Determination
Date during the Class A-2 Controlled Amortization Period or the first
Determination Date after the commencement of the Series 2004-2 Rapid
Amortization Period, payments with respect to principal will be made on the
Class A-2 Notes. As described above, the entire unpaid principal amount of
this Class A-2 Note shall be due and payable on the Class A-2 Final
Distribution Date. Notwithstanding the foregoing, if an Amortization Event,
Liquidation Event of Default, Waiver Event or Series 2004-2 Limited Liquidation
Event of Default shall have occurred and be continuing then, in certain
circumstances, principal on the Class A-2 Notes may be paid earlier, as
described in the Indenture. All principal payments on the Class A-2 Notes
shall be made pro rata to the Noteholders entitled thereto.

Payments of interest on this Class A-2 Note due and payable on each
Distribution Date, together with the installment of principal then due, if any,
to the extent not in full payment of this Class A-2 Note, shall be made by wire
transfer for credit to the account designated by the Holder of record of this
Class A-2 Note (or one or more predecessor Class A-2 Notes) on the Note
Register as of the close of business on each Record Date, except that with
respect to Class A-2 Notes registered on the Record Date in the name of the
nominee of the Clearing Agency (initially, such nominee to be Cede & Co.),
payments will be made by wire transfer in immediately available funds to the
account designated by such nominee. Any reduction in the principal
amount of this Class A-2 Note (or any one or more predecessor Class A-2
Notes) effected by any

 

 

Exhibit A-2-3

Page 6

payments made on any Distribution Date shall be binding
upon all future Holders of this Class A-2 Note and of any Class A-2 Note issued
upon the registration of transfer hereof or in exchange hereof or in lieu
hereof, whether or not noted thereon.

The Company shall pay interest on overdue installments of interest at the
Class A-2 Note Rate to the extent lawful.

As provided in the Indenture, the Class A-2 Notes may be redeemed, in
whole, but not in part, at the option of the Company on any Distribution Date
if on such Distribution Date the Class A-2 Invested Amount is less than or
equal to 10% of the Class A-2 Initial Invested Amount. The purchase price for
such repurchase of the Class A-2 Notes shall equal the aggregate outstanding
principal balance of such Class A-2 Notes (determined after giving effect to
any payment of principal and interest on such Distribution Date),
plus accrued and unpaid interest on such outstanding Class A-2 Invested
Amount.

As provided in the Indenture and subject to certain limitations set forth
therein, the transfer of this Class A-2 Note may be registered on the Note
Register upon surrender of this Class A-2 Note for registration of transfer at
the office or agency designated by the Company pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by, the Holder hereof or his attorney
duly authorized in writing, with such signature guaranteed by an “Eligible
Guarantor Institution” (as defined in Rule 17Ad-15 under the Exchange Act),
and such other documents as the Trustee may reasonably require, and thereupon
one or more new Class A-2 Notes of authorized denominations in the same
aggregate principal amount will be issued to the designated transferee or
transferees. No service charge will be charged for any registration of
transfer or exchange of this Class A-2 Note, but the transferor may be required
to pay a sum sufficient to cover any tax or other governmental charge that may
be imposed in connection with any such registration of transfer or exchange.

Each Noteholder or Note Owner by acceptance of a Class A-2 Note or, in the
case of a Note Owner, a beneficial interest in a Class A-2 Note, covenants and
agrees that no recourse may be taken, directly or indirectly, with respect to
the obligations of the Company, AESOP Leasing, AESOP Leasing II, ARAC or the
Trustee on the Class A-2 Notes or under the Indenture or any certificate or
other writing delivered in connection therewith, against (i) the Trustee, AESOP
Leasing, AESOP Leasing II or ARAC in its individual capacity, (ii) any owner of
a beneficial interest in the Company or (iii) any partner, owner, beneficiary,
agent, officer, director or employee of the Trustee, AESOP Leasing, AESOP
Leasing II or ARAC in its individual capacity, any holder of a beneficial
interest in the Company, AESOP Leasing, AESOP Leasing II, ARAC or the Trustee
or of any successor or assign of the Trustee, AESOP Leasing, AESOP Leasing II
or ARAC in its individual capacity, except (a) as any such Person may have
expressly agreed and (b) any such partner, owner or beneficiary shall be fully
liable, to the extent provided by applicable law, for any unpaid consideration
for stock, unpaid capital contribution or failure to pay any installment or
call owing to such entity; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement
against, the assets of the Company

 

 

Exhibit A-2-3

Page 7

for any and all liabilities, obligations and undertakings contained in the Indenture or in this Class A-2 Note, subject to
Section 13.18 of the Base Indenture.

Each Noteholder or Note Owner, by acceptance of a Note or, in the case of
a Note Owner, a beneficial interest in a Note, covenants and agrees that by
accepting the benefits of the Indenture that such Noteholder or Note Owner, as
the case may be, will not for a period of one year and one day following
payment in full of all Notes institute against the Company, or join in any
institution against the Company of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any United States
Federal or state bankruptcy or similar law in connection with any obligations
relating to the Notes, the Indenture or the Related Documents.

Prior to the due presentment for registration of transfer of this Class
A-2 Note, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Class A-2 Note (as of the day of
determination or as of such other date as may be specified in the Indenture) is
registered as the owner hereof for all purposes, whether or not this Class A-2
Note be overdue, and neither the Company, the Trustee nor any such agent shall
be affected by notice to the contrary.

It is the intent of the Company, each Noteholder and each Note Owner that,
for Federal, state and local income and franchise tax purposes only, the Class
A-2 Notes will evidence indebtedness of the Company secured by the Series
2004-2 Collateral. Each Noteholder and each Note Owner, by the acceptance of
this Class A-2 Note, agrees to treat this Class A-2 Note for Federal, state and
local income and franchise tax purposes as indebtedness of the Company.

Each Holder of this Note shall provide to the Trustee at least annually an
appropriate statement (on Internal Revenue Service Form W-8 or suitable
substitute) with respect to United States federal income tax and withholding
tax, signed under penalties of perjury, certifying that the beneficial owner of
this Note is a non-U.S. person and providing the Noteholder’s name and address.
If the information provided in the statement changes, the Noteholder shall so
inform the Trustee within 30 days of such change.

The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Series 2004-2 Notes under the
Indenture at any time by the Company with the consent of the Holders of Series
2004-2 Notes representing more than 50% in principal amount of the aggregate
outstanding amount of the Series 2004-2 Notes which are affected by such
amendment or modification. The Indenture also contains provisions permitting
the Holders of Series 2004-2 Notes representing specified percentages of the
aggregate outstanding amount of the Series 2004-2 Notes, on behalf of the
Holders of all the Series 2004-2 Notes, to waive compliance by the Company with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Class A-2 Note (or any one or more predecessor Class A-2 Notes) shall be
conclusive and binding upon such Holder and upon all future Holders of this
Class A-2 Note and of any Class A-2 Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or not

 

 

Exhibit A-2-3

Page 8

 notation of such consent or waiver is made upon this Class A-2 Note. The
Indenture also permits the Trustee to amend or waive certain terms and
conditions set forth in the Indenture without the consent of Holders of the
Series Class A-2 Notes issued thereunder.

The term “Company” as used in this Class A-2 Note includes any successor
to the Company under the Indenture.

The Class A-2 Notes are issuable only in registered form in denominations
as provided in the Indenture, subject to certain limitations set forth therein.

This Class A-2 Note and the Indenture shall be construed in accordance
with the law of the State of New York and the obligations, rights and remedies
of the parties hereunder and thereunder shall be determined in accordance with
such law.

No reference herein to the Indenture and no provision of this Class A-2
Note or of the Indenture shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of and interest on
this Class A-2 Note at the times, place, and rate, and in the coin or currency
herein prescribed.

Interests in this Permanent Global Note will be transferable in accordance
with the rules and procedures for the time being of Clearstream Banking,
société anonyme (“Clearstream”), or Euroclear Bank S.A./N.V., as
operator of the Euroclear System (“Euroclear”). Each person who is
shown in the records of Euroclear and Clearstream as entitled to a particular
number of Class A-2 Notes by way of an interest in this Permanent Global Note
will be treated by the Trustee and any paying agent as the holder of such
number of Class A-2 Notes. For purposes of this Permanent Global Note, the
securities account records of Euroclear or Clearstream shall, in the absence of
manifest error, be conclusive evidence of the identity of the holders of Class
A-2 Notes and of the principal amount of Class A-2 Notes represented by this
Permanent Global Note credited to the securities accounts of such holders of
Class A-2 Notes. Any statement issued by Euroclear or Clearstream to any
holder relating to a specified Class A-2 Note or Class A-2 Notes credited to
the securities account of such holder and stating the principal amount of such
Class A-2 Note or Class A-2 Notes and certified by Euroclear or Clearstream to
be a true record of such securities account shall, in the absence of manifest
error, be conclusive evidence of the records of Euroclear or Clearstream for
the purposes of the next preceding sentence (but without prejudice to any other
means of producing such records in evidence). Notwithstanding any provision to
the contrary contained in this Permanent Global Note, the Company irrevocably
agrees, for the benefit of such holder and its successors and assigns, that,
subject to the provisions of the Indenture, each holder or its successors or
assigns may file any claim, take any action or institute any proceeding to
enforce, directly against the Company, the obligation of the Company hereunder
to pay any amount due in respect of each Class A-2 Note represented by this
Permanent Global Note which is credited to such holder’s securities account
with Euroclear or Clearstream without the production of this Permanent Global
Note.

 

 

Exhibit A-2-3

Page 9

Interests in this Permanent Global Note may be exchanged for Definitive
Notes subject to the provisions of the Indenture.

 

 

Exhibit A-3-1

Page 1

FORM OF RESTRICTED GLOBAL CLASS A-3 NOTE

			
	 	 	 
	REGISTERED
	 	$                   *
	No. R-    	 	 

SEE REVERSE FOR CERTAIN CONDITIONS

CUSIP (CINS) NO. 00103R BJ 4

ISIN NUMBER : US00103RBJ41

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES OR “BLUE SKY”
LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CLASS A-3 NOTE, AGREES FOR THE
BENEFIT OF AESOP FUNDING II L.L.C. (THE “COMPANY”) THAT THIS CLASS A-3
NOTE IS BEING ACQUIRED FOR ITS OWN ACCOUNT AND NOT WITH A VIEW TO DISTRIBUTION
AND MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) TO THE COMPANY
(UPON REDEMPTION THEREOF OR OTHERWISE), (2) TO A PERSON THE TRANSFEROR
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A, (3) OUTSIDE THE UNITED STATES TO A NON-U.S. PERSON (AS SUCH TERM IS
DEFINED IN REGULATION S OF THE SECURITIES ACT) IN A TRANSACTION IN COMPLIANCE
WITH REGULATION S OF THE SECURITIES ACT, OR (4) IN A TRANSACTION COMPLYING WITH
OR EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES OR ANY OTHER JURISDICTION. EACH SUCH TRANSFER SHALL BE IN ACCORDANCE
WITH THE BASE INDENTURE, ANY APPLICABLE SUPPLEMENT AND ALL APPLICABLE
SECURITIES LAWS. THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
NOTIFY ANY PURCHASER FROM IT OF THE RESALE RESTRICTIONS SET FORTH ABOVE.

EXCEPT AS OTHERWISE PROVIDED IN SECTION 2.9 OF THE BASE INDENTURE, THIS
CLASS A-3 NOTE MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER
NOMINEE OF THE CLEARING AGENCY OR TO A SUCCESSOR CLEARING AGENCY OR TO A
NOMINEE OF SUCH SUCCESSOR CLEAR-

	*	 	Denominations of $1,000,000 and integral multiples of $200,000.

 

 

Exhibit A-3-1

Page 2

ING AGENCY. UNLESS THIS CLASS A-3 NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
(“DTC”), TO AESOP FUNDING II L.L.C. OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CLASS A-3 NOTE ISSUED IS REGISTERED IN
THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

THE PRINCIPAL OF THIS CLASS A-3 NOTE IS PAYABLE IN INSTALLMENTS AS SET
FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS CLASS A-3
NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

AESOP FUNDING II L.L.C.

SERIES 2004-2 FLOATING RATE RENTAL CAR ASSET

BACKED NOTES, CLASS A-3

AESOP FUNDING II L.L.C., a Delaware limited liability company (herein
referred to as the “Company”), for value received, hereby promises to
pay to Cede & Co., or registered assigns, the principal sum of [                   ]
MILLION DOLLARS, which amount shall be payable in the amounts and at the times
set forth in the Indenture, provided, however, that the entire
unpaid principal amount of this Class A-3 Note shall be due on the Class A-3
Final Distribution Date, which is the April 2010 Distribution Date. However,
principal with respect to the Class A-3 Notes may be paid earlier or later
under certain limited circumstances described in the Indenture. The Company
will pay interest on this Class A-3 Note at the Class A-3 Note Rate. Such
interest shall be payable on each Distribution Date until the principal of this
Class A-3 Note is paid or made available for payment. Interest on this Class
A-3 Note will accrue for each Distribution Date from the most recent
Distribution Date on which interest has been paid to but excluding such
Distribution Date or, if no interest has yet been paid, from February 18, 2004.
Interest with respect to the Class A-3 Notes will be calculated in the manner
provided in the Indenture. Such principal of and interest on this Class A-3
Note shall be paid in the manner specified on the reverse hereof.

The principal of and interest on this Class A-3 Note are payable in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts. All payments made by the
Company with respect to this Class A-3 Note shall be applied first to interest
due and payable on this Class A-3 Note as provided above and then to the unpaid
principal of this Class A-3 Note. This Class A-3 Note does not represent an
interest in, or an obligation of Original AESOP, AESOP Leasing, AESOP Leasing
II, AFC,

 

 

Exhibit A-3-1

Page 3

AGH, ARAC or any affiliate of Original AESOP, AESOP Leasing, AESOP Leasing
II, AFC, AGH, ARAC other than the Company.

Interests in this Note are exchangeable or transferable in whole or in
part for interests in a Restricted Global Note if this Note is a Temporary
Global Note, or for interests in a Temporary Global Note or a Permanent Global
Note if this Note is a Restricted Global Note (each as defined in the Base
Indenture), in each case of the same Series and Class, provided that such
transfer or exchange complies with Article 2 of the Base Indenture. Interests
in this Note may be exchangeable in whole or in part for duly executed and
issued definitive registered Notes if so provided in Article 2 of the Base
Indenture, with the applicable legends as marked therein, subject to the
provisions of the Base Indenture.

Reference is made to the further provisions of this Class A-3 Note set
forth on the reverse hereof, which shall have the same effect as though fully
set forth on the face of this Class A-3 Note. Although a summary of certain
provisions of the Indenture are set forth below and on the reverse hereof and
made a part hereof, this Class A-3 Note does not purport to summarize the
Indenture and reference is made to the Indenture for information with respect
to the interests, rights, benefits, obligations, proceeds and duties evidenced
hereby and the rights, duties and obligations of AESOP Leasing, AESOP Leasing
II, ARAC and the Trustee. A copy of the Indenture may be requested from the
Trustee by writing to the Trustee at: The Bank of New York, c/o BNY Midwest
Trust Company, 2 North LaSalle Street, 10th Floor, Chicago, Illinois 60602.
To the extent not defined herein, the capitalized terms used herein have the
meanings ascribed to them in the Indenture.

Unless the certificate of authentication hereon has been executed by the
Trustee whose name appears below by manual signature, this Class A-3 Note shall
not be entitled to any benefit under the Indenture referred to on the reverse
hereof, or be valid or obligatory for any purpose.

 

 

Exhibit A-3-1

Page 4

IN WITNESS WHEREOF, the Company has caused this instrument to be signed,
manually or in facsimile, by its Authorized Officer.

Date:                    

	 	 	 	 	 
	 	 	AESOP FUNDING II L.L.C.
	 
	 	 	 	 
	

	 	By	 	 
	

	 	 	 	 
	

	 	 	 	Name:
	

	 	 	 	Title:

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Class A-3 Notes of the Series 2004-2 Notes, a series
issued under the within-mentioned Indenture.

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK, as Trustee
	 
	 	 	 	 
	

	 	By	 	 
	

	 	 	 	 
	

	 	 	 	Authorized Signatory

 

 

Exhibit A-3-1

Page 5

[REVERSE OF CLASS A-3 NOTE]

This Class A-3 Note is one of a duly authorized issue of Class A-3 Notes
of the Company, designated as its Series 2004-2 Floating Rate Rental Car Asset
Backed Notes, Class A-3 (herein called the “Class A-3-Notes”), all
issued under (i) an Amended and Restated Base Indenture dated as of July 30,
1997 (such Base Indenture, as amended, supplemented or modified (exclusive of
any supplements thereto creating a new Series of Notes), is herein called the
“Base Indenture”), between the Company and The Bank of New York as successor in
interest to the corporate trust administration of Harris Trust and Savings
Bank, as trustee (the “Trustee”, which term includes any successor
Trustee under the Base Indenture), and (ii) a Series 2004-2 Supplement dated as
of February 18, 2004 (such supplement, as may be amended or modified, is herein
called the “Series 2004-2 Supplement”) among the Company, the Trustee
and The Bank of New York, as Series 2004-2 Agent. The Base Indenture and the
Series 2004-2 Supplement are referred to herein as the “Indenture”. The
Class A-3 Notes are subject to all terms of the Indenture. All terms used in
this Class A-3 Note that are defined in the Indenture shall have the meanings
assigned to them in or pursuant to the Indenture.

The Class A-3 Notes are and will be equally and ratably secured by the
Series 2004-2 Collateral pledged as security therefor as provided in the
Indenture.

Principal of the Class A-3 Notes will be payable on each Distribution Date
specified in and in the amounts described in the Indenture. “Distribution
Date” means the 20th day of each month, or, if any such date is not a
Business Day, the next succeeding Business Day, commencing March 22, 2004.

Commencing on the Distribution Date following the second Determination
Date during the Class A-3 Controlled Amortization Period or the first
Determination Date after the commencement of the Series 2004-2 Rapid
Amortization Period, payments with respect to principal will be made on the
Class A-3 Notes. As described above, the entire unpaid principal amount of
this Class A-3 Note shall be due and payable on the Class A-3 Final
Distribution Date. Notwithstanding the foregoing, if an Amortization Event,
Liquidation Event of Default, Waiver Event or Series 2004-2 Limited Liquidation
Event of Default shall have occurred and be continuing then, in certain
circumstances, principal on the Class A-3 Notes may be paid earlier, as
described in the Indenture. All principal payments on the Class A-3 Notes
shall be made pro rata to the Noteholders entitled thereto.

Payments of interest on this Class A-3 Note due and payable on each
Distribution Date, together with the installment of principal then due, if any,
to the extent not in full payment of this Class A-3 Note, shall be made by wire
transfer for credit to the account designated by the Holder of record of this
Class A-3 Note (or one or more predecessor Class A-3 Notes) on the Note
Register as of the close of business on each Record Date, except that with
respect to Class A-3 Notes registered on the Record Date in the name of the
nominee of the Clearing Agency (initially, such nominee to be Cede & Co.),
payments will be made by wire transfer in immediately available funds to the
account designated by such nominee. Any reduction in the principal amount of
this Class A-3 Note (or any one or more predecessor Class A-3 Notes) effected
by any

 

 

Exhibit A-3-1

Page 6

payments made on any Distribution Date shall be binding upon all future
Holders of this Class A-3 Note and of any Class A-3 Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof,
whether or not noted thereon.

The Company shall pay interest on overdue installments of interest at the
Class A-3 Note Rate to the extent lawful.

As provided in the Indenture, the Class A-3 Notes may be redeemed, in
whole, but not in part, at the option of the Company on any Distribution Date
if on such Distribution Date the Class A-3 Invested Amount is less than or
equal to 10% of the Class A-3 Initial Invested Amount. The purchase price for
such repurchase of the Class A-3 Notes shall equal the aggregate outstanding
principal balance of such Class A-3 Notes (determined after giving effect to
any payment of principal and interest on such Distribution Date), plus accrued
and unpaid interest on such outstanding Class A-3 Invested Amount.

As provided in the Indenture and subject to certain limitations set forth
therein, the transfer of this Class A-3 Note may be registered on the Note
Register upon surrender of this Class A-3 Note for registration of transfer at
the office or agency designated by the Company pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by, the Holder hereof or his attorney
duly authorized in writing, with such signature guaranteed by an “Eligible
Guarantor Institution” (as defined in Rule 17Ad-15 under the Exchange Act),
and such other documents as the Trustee may reasonably require, and thereupon
one or more new Class A-3 Notes of authorized denominations in the same
aggregate principal amount will be issued to the designated transferee or
transferees. No service charge will be charged for any registration of
transfer or exchange of this Class A-3 Note, but the transferor may be required
to pay a sum sufficient to cover any tax or other governmental charge that may
be imposed in connection with any such registration of transfer or exchange.

Each Noteholder or Note Owner by acceptance of a Class A-3 Note or, in the
case of a Note Owner, a beneficial interest in a Class A-3 Note, covenants and
agrees that no recourse may be taken, directly or indirectly, with respect to
the obligations of the Company, AESOP Leasing, AESOP Leasing II, ARAC or the
Trustee on the Class A-3 Notes or under the Indenture or any certificate or
other writing delivered in connection therewith, against (i) the Trustee, AESOP
Leasing, AESOP Leasing II or ARAC in its individual capacity, (ii) any owner of
a beneficial interest in the Company or (iii) any partner, owner, beneficiary,
agent, officer, director or employee of the Trustee, AESOP Leasing, AESOP
Leasing II or ARAC in its individual capacity, any holder of a beneficial
interest in the Company, AESOP Leasing, AESOP Leasing II, ARAC or the Trustee
or of any successor or assign of the Trustee, AESOP Leasing, AESOP Leasing II
or ARAC in its individual capacity, except (a) as any such Person may have
expressly agreed and (b) any such partner, owner or beneficiary shall be fully
liable, to the extent provided by applicable law, for any unpaid consideration
for stock, unpaid capital contribution or failure to pay any installment or
call owing to such entity; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement
against, the assets of the Company

 

 

Exhibit A-3-1

Page 7

for any and all liabilities, obligations and undertakings contained in the
Indenture or in this Class A-3 Note, subject to Section 13.18 of the Base
Indenture.

Each Noteholder or Note Owner, by acceptance of a Note or, in the case of
a Note Owner, a beneficial interest in a Note, covenants and agrees that by
accepting the benefits of the Indenture that such Noteholder or Note Owner, as
the case may be, will not for a period of one year and one day following
payment in full of all Notes institute against the Company, or join in any
institution against the Company of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any United States
Federal or state bankruptcy or similar law in connection with any obligations
relating to the Notes, the Indenture or the Related Documents.

Prior to the due presentment for registration of transfer of this Class
A-3 Note, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Class A-3 Note (as of the day of
determination or as of such other date as may be specified in the Indenture) is
registered as the owner hereof for all purposes, whether or not this Class A-3
Note be overdue, and neither the Company, the Trustee nor any such agent shall
be affected by notice to the contrary.

It is the intent of the Company, each Noteholder and each Note Owner that,
for Federal, state and local income and franchise tax purposes only, the Class
A-3 Notes will evidence indebtedness of the Company secured by the Series
2004-2 Collateral. Each Noteholder and each Note Owner, by the acceptance of
this Class A-3 Note, agrees to treat this Class A-3 Note for Federal, state and
local income and franchise tax purposes as indebtedness of the Company.

The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Series 2004-2 Notes under the
Indenture at any time by the Company with the consent of the Holders of Series
2004-2 Notes representing more than 50% in principal amount of the aggregate
outstanding amount of the Series 2004-2 Notes which are affected by such
amendment or modification. The Indenture also contains provisions permitting
the Holders of Series 2004-2 Notes representing specified percentages of the
aggregate outstanding amount of the Series 2004-2 Notes, on behalf of the
Holders of all the Series 2004-2 Notes, to waive compliance by the Company with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Class A-3 Note (or any one or more predecessor Class A-3 Notes) shall be
conclusive and binding upon such Holder and upon all future Holders of this
Class A-3 Note and of any Class A-3 Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or not notation
of such consent or waiver is made upon this Class A-3 Note. The Indenture also
permits the Trustee to amend or waive certain terms and conditions set forth in
the Indenture without the consent of Holders of the Series 2004-2 Notes issued
thereunder.

The term “Company” as used in this Class A-3 Note includes any successor
to the Company under the Indenture.

 

 

Exhibit A-3-1

Page 8

The Class A-3 Notes are issuable only in registered form in denominations
as provided in the Indenture, subject to certain limitations set forth therein.

This Class A-3 Note and the Indenture shall be construed in accordance
with the law of the State of New York and the obligations, rights and remedies
of the parties hereunder and thereunder shall be determined in accordance with
such law.

No reference herein to the Indenture and no provision of this Class A-3
Note or of the Indenture shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of and interest on
this Class A-3 Note at the times, place, and rate, and in the coin or currency
herein prescribed.

Interests in this Restricted Global Note may be exchanged for Definitive
Notes, subject to the provisions of the Indenture.

 

 

Exhibit A-3-1

Page 8

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

 

(name and address of assignee)

the within Class A-3 Note and all rights thereunder, and hereby irrevocably
constitutes and appoints                                       , attorney, to transfer said
Class A-3 Note on the books kept for registration thereof, with full power of
substitution in the premises.

Dated:                    

	 	 	 	 	 	 	 
	

	 	By
	 	 	 	2
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Signature Guaranteed:
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 

2      NOTE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note, without
alteration, enlargement or any change whatsoever.

 

 

EXHIBIT A-3-2

to

Series 2004-2

Supplement

FORM OF TEMPORARY GLOBAL CLASS A-3 NOTE

			
	 	 	 
	REGISTERED
	 	$                   **
	 	 	 
	No. R-	 	 

SEE REVERSE FOR CERTAIN CONDITIONS

CUSIP (CINS) NO. U0081G BC 6

ISIN NO. USU0081GBC60

THIS NOTE IS A TEMPORARY GLOBAL NOTE, WITHOUT COUPONS, EXCHANGEABLE FOR A
PERMANENT GLOBAL NOTE WHICH IS, UNDER CERTAIN CIRCUMSTANCES, IN TURN,
EXCHANGEABLE FOR DEFINITIVE NOTES WITHOUT COUPONS. THE RIGHTS ATTACHING TO
THIS TEMPORARY GLOBAL NOTE, AND THE CONDITIONS AND PROCEDURES GOVERNING ITS
EXCHANGE, ARE AS SPECIFIED IN THE INDENTURE (AS DEFINED HEREIN).

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES OR “BLUE SKY”
LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CLASS A-3 NOTE, AGREES FOR THE
BENEFIT OF AESOP FUNDING II L.L.C. (THE “COMPANY”) THAT THIS CLASS A-3
NOTE IS BEING ACQUIRED FOR ITS OWN ACCOUNT AND NOT WITH A VIEW TO DISTRIBUTION
AND MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) TO THE COMPANY
(UPON REDEMPTION THEREOF OR OTHERWISE), (2) TO A PERSON THE TRANSFEROR
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A, (3) OUTSIDE THE UNITED STATES TO A NON-U.S. PERSON (AS SUCH TERM IS
DEFINED IN REGULATION S OF THE SECURITIES ACT) IN A TRANSACTION IN COMPLIANCE
WITH REGULATION S OF THE SECURITIES ACT, OR (4) IN A TRANSACTION COMPLYING WITH
OR EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER
JURISDICTION. EACH SUCH TRANSFER SHALL BE IN ACCORDANCE

	**	 	Denominations of $1,000,000 and integral multiples of $200,000.

 

 

Exhibit A-3-2

Page 2

WITH THE BASE INDENTURE, ANY APPLICABLE SUPPLEMENT AND ALL APPLICABLE
SECURITIES LAWS. THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
NOTIFY ANY PURCHASER FROM IT OF THE RESALE RESTRICTIONS SET FORTH ABOVE.

EXCEPT AS OTHERWISE PROVIDED IN SECTION 2.9 OF THE BASE INDENTURE, THIS
CLASS A-3 NOTE MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER
NOMINEE OF THE CLEARING AGENCY OR TO A SUCCESSOR CLEARING AGENCY OR TO A
NOMINEE OF SUCH SUCCESSOR CLEARING AGENCY. UNLESS THIS CLASS A-3 NOTE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), TO AESOP FUNDING II L.L.C. OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CLASS A-3 NOTE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THE PRINCIPAL OF THIS CLASS A-3 NOTE IS PAYABLE IN INSTALLMENTS AS SET
FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS CLASS A-3
NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

INTERESTS IN THIS TEMPORARY GLOBAL NOTE MAY ONLY BE HELD BY NON-U.S.
PERSONS AS SUCH TERM IS DEFINED IN REGULATION S OF THE SECURITIES ACT, AND MAY
ONLY BE HELD IN BOOK-ENTRY FORM THROUGH EUROCLEAR OR CLEARSTREAM.

AESOP FUNDING II L.L.C.

SERIES 2004-2 FLOATING RATE RENTAL CAR

ASSET BACKED NOTES, CLASS A-3

AESOP FUNDING II L.L.C., a Delaware limited liability company (herein
referred to as the “Company”), for value received, hereby promises to
pay to Cede & Co., or registered assigns, the principal sum of [                   ]
MILLION DOLLARS (or such lesser amount as shall be the outstanding principal
amount of this Temporary Global Note shown in Schedule A hereto), which amount
shall be payable in the amounts and at the times set forth in the Indenture,
provided, however, that the entire unpaid principal amount of
this Class A-3 Note shall be due on the Class A-3 Final Distribution Date,
which is the April 2010 Distribution Date. However, principal with respect to
the Class A-3 Notes may be paid earlier or later under certain limited
circumstances described in the Indenture. The Company will pay interest on
this Class A-3 Note

 

 

Exhibit A-3-2

Page 3

at the Class A-3 Note Rate. Such interest shall be payable on each
Distribution Date until the principal of this Class A-3 Note is paid or made
available for payment. Interest on this Class A-3 Note will accrue for each
Distribution Date from the most recent Distribution Date on which interest has
been paid to but excluding such Distribution Date or, if no interest has yet
been paid, from February 18, 2004. Interest with respect to the Class A-3
Notes will be calculated in the manner provided in the Indenture. Such
principal of and interest on this Class A-3 Note shall be paid in the manner
specified on the reverse hereof.

The principal of and interest on this Class A-3 Note are payable in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts. All payments made by the
Company with respect to this Class A-3 Note shall be applied first to interest
due and payable on this Class A-3 Note as provided above and then to the unpaid
principal of this Class A-3 Note. This Class A-3 Note does not represent an
interest in, or an obligation of Original AESOP, AESOP Leasing, AESOP Leasing
II, AFC, AGH, ARAC or any affiliate of Original AESOP, AESOP Leasing, AESOP
Leasing II, AFC, AGH, ARAC other than the Company.

Interests in this Note are exchangeable or transferable in whole or in
part for interests in a Restricted Global Note if this Note is a Temporary
Global Note, or for interests in a Temporary Global Note or a Permanent Global
Note if this Note is a Restricted Global Note (each as defined in the Base
Indenture), in each case of the same Series and Class, provided that such
transfer or exchange complies with Article 2 of the Base Indenture. Interests
in this Note may be exchangeable in whole or in part for duly executed and
issued definitive registered Notes if so provided in Article 2 of the Base
Indenture, with the applicable legends as marked therein, subject to the
provisions of the Base Indenture.

Reference is made to the further provisions of this Class A-3 Note set
forth on the reverse hereof, which shall have the same effect as though fully
set forth on the face of this Class A-3 Note. Although a summary of certain
provisions of the Indenture are set forth below and on the reverse hereof and
made a part hereof, this Class A-3 Note does not purport to summarize the
Indenture and reference is made to the Indenture for information with respect
to the interests, rights, benefits, obligations, proceeds and duties evidenced
hereby and the rights, duties and obligations of AESOP Leasing, AESOP Leasing
II, ARAC and the Trustee. A copy of the Indenture may be requested from the
Trustee by writing to the Trustee at: The Bank of New York, c/o BNY Midwest
Trust Company, 2 North LaSalle Street, 10th Floor, Chicago, Illinois 60602. To
the extent not defined herein, the capitalized terms used herein have the
meanings ascribed to them in the Indenture.

Unless the certificate of authentication hereon has been executed by the
Trustee whose name appears below by manual signature, this Class A-3 Note shall
not be entitled to any benefit under the Indenture referred to on the reverse
hereof, or be valid or obligatory for any purpose.

 

 

Exhibit A-3-2

Page 4

IN WITNESS WHEREOF, the Company has caused this instrument to be signed,
manually or in facsimile, by its Authorized Officer.

Date:                                       

	 	 	 	 	 
	 	 	AESOP FUNDING II L.L.C.
	 
	 	 	 	 
	

	 	By	 	 
	

	 	 	 	 
	

	 	 	 	Name:
	

	 	 	 	Title:

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Class A-3 Notes of the Series 2004-2 Notes, a series
issued under the within-mentioned Indenture.

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK, as Trustee
	 
	 	 	 	 
	

	 	By	 	 
	

	 	 	 	 
	

	 	 	 	Authorized Signatory

 

 

Exhibit A-3-2

Page 5

[REVERSE OF CLASS A-3 NOTE]

This Class A-3 Note is one of a duly authorized issue of Class A-3 Notes
of the Company, designated as its Series 2004-2 Floating Rate Rental Car Asset
Backed Notes, Class A-3 (herein called the “Class A-3 Notes”), all
issued under (i) an Amended and Restated Base Indenture dated as of July 30,
1997 (such Base Indenture, as amended, supplemented or modified (exclusive of
any supplements thereto creating a new Series of Notes), is herein called the
“Base Indenture”), between the Company and The Bank of New York as
successor in interest to the corporate trust administration of Harris Trust and
Savings Bank, as trustee (the “Trustee”, which term includes any
successor Trustee under the Base Indenture), and (ii) a Series 2004-2
Supplement dated as of February 18, 2004 (such supplement, as may be amended or
modified, is herein called the “Series 2004-2 Supplement”) among the
Company, the Trustee and The Bank of New York, as Series 2004-2 Agent. The
Base Indenture and the Series 2004-2 Supplement are referred to herein as the
“Indenture”. The Class A-3 Notes are subject to all terms of the
Indenture. All terms used in this Class A-3 Note that are defined in the
Indenture shall have the meanings assigned to them in or pursuant to the
Indenture.

The Class A-3 Notes are and will be equally and ratably secured by the
Series 2004-2 Collateral pledged as security therefor as provided in the
Indenture.

Principal of the Class A-3 Notes will be payable on each Distribution Date
specified in and in the amounts described in the Indenture. “Distribution
Date” means the 20th day of each month, or, if any such date is not a
Business Day, the next succeeding Business Day, commencing March 22, 2004.

Commencing on the Distribution Date following the second Determination
Date during the Class A-3 Controlled Amortization Period or the first
Determination Date after the commencement of the Series 2004-2 Rapid
Amortization Period, payments with respect to principal will be made on the
Class A-3 Notes. As described above, the entire unpaid principal amount of
this Class A-3 Note shall be due and payable on the Class A-3 Final
Distribution Date. Notwithstanding the foregoing, if an Amortization Event,
Liquidation Event of Default, Waiver Event or Series 2004-2 Limited Liquidation
Event of Default shall have occurred and be continuing then, in certain
circumstances, principal on the Class A-3 Notes may be paid earlier, as
described in the Indenture. All principal payments on the Class A-3 Notes
shall be made pro rata to the Noteholders entitled thereto.

Payments of interest on this Class A-3 Note due and payable on each
Distribution Date, together with the installment of principal then due, if any,
to the extent not in full payment of this Class A-3 Note, shall be made by wire
transfer for credit to the account designated by the Holder of record of this
Class A-3 Note (or one or more predecessor Class A-3 Notes) on the Note
Register as of the close of business on each Record Date, except that with
respect to Class A-3 Notes registered on the Record Date in the name of the
nominee of the Clearing Agency (initially, such nominee to be Cede & Co.),
payments will be made by wire transfer in immediately available funds to the
account designated by such nominee. Any reduction in the principal amount of
this Class A-3 Note (or any one or more predecessor Class A-3 Notes) effected
by any

 

 

Exhibit A-3-2

Page 6

payments made on any Distribution Date shall be binding upon all future
Holders of this Class A-3 Note and of any Class A-3 Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof,
whether or not noted thereon.

The Company shall pay interest on overdue installments of interest at the
Class A-3 Note Rate to the extent lawful.

As provided in the Indenture, the Class A-3 Notes may be redeemed, in
whole, but not in part, at the option of the Company on any Distribution Date
if on such Distribution Date the Class A-3 Invested Amount is less than or
equal to 10% of the Class A-3 Initial Invested Amount. The purchase price for
such repurchase of the Class A-3 Notes shall equal the aggregate outstanding
principal balance of such Class A-3 Notes (determined after giving effect to
any payment of principal and interest on such Distribution Date), plus
accrued and unpaid interest on such outstanding Class A-3 Invested Amount.

As provided in the Indenture and subject to certain limitations set forth
therein, the transfer of this Class A-3 Note may be registered on the Note
Register upon surrender of this Class A-3 Note for registration of transfer at
the office or agency designated by the Company pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by, the Holder hereof or his attorney
duly authorized in writing, with such signature guaranteed by an “Eligible
Guarantor Institution” (as defined in Rule 17Ad-15 under the Exchange Act),
and such other documents as the Trustee may reasonably require, and thereupon
one or more new Class A-3 Notes of authorized denominations in the same
aggregate principal amount will be issued to the designated transferee or
transferees. No service charge will be charged for any registration of
transfer or exchange of this Class A-3 Note, but the transferor may be required
to pay a sum sufficient to cover any tax or other governmental charge that may
be imposed in connection with any such registration of transfer or exchange.

Each Noteholder or Note Owner by acceptance of a Class A-3 Note or, in the
case of a Note Owner, a beneficial interest in a Class A-3 Note, covenants and
agrees that no recourse may be taken, directly or indirectly, with respect to
the obligations of the Company, AESOP Leasing, AESOP Leasing II, ARAC or the
Trustee on the Class A-3 Notes or under the Indenture or any certificate or
other writing delivered in connection therewith, against (i) the Trustee, AESOP
Leasing, AESOP Leasing II or ARAC in its individual capacity, (ii) any owner of
a beneficial interest in the Company or (iii) any partner, owner, beneficiary,
agent, officer, director or employee of the Trustee, AESOP Leasing, AESOP
Leasing II or ARAC in its individual capacity, any holder of a beneficial
interest in the Company, AESOP Leasing, AESOP Leasing II, ARAC or the Trustee
or of any successor or assign of the Trustee, AESOP Leasing, AESOP Leasing II
or ARAC in its individual capacity, except (a) as any such Person may have
expressly agreed and (b) any such partner, owner or beneficiary shall be fully
liable, to the extent provided by applicable law, for any unpaid consideration
for stock, unpaid capital contribution or failure to pay any installment or
call owing to such entity; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement
against, the assets of the Company

 

 

Exhibit A-3-2

Page 7

for any and all liabilities, obligations and undertakings contained in the
Indenture or in this Class A-3 Note, subject to Section 13.18 of the Base
Indenture.

Each Noteholder or Note Owner, by acceptance of a Note or, in the case of
a Note Owner, a beneficial interest in a Note, covenants and agrees that by
accepting the benefits of the Indenture that such Noteholder or Note Owner, as
the case may be, will not for a period of one year and one day following
payment in full of all Notes institute against the Company, or join in any
institution against the Company of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any United States
Federal or state bankruptcy or similar law in connection with any obligations
relating to the Notes, the Indenture or the Related Documents.

Prior to the due presentment for registration of transfer of this Class
A-3 Note, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Class A-3 Note (as of the day of
determination or as of such other date as may be specified in the Indenture) is
registered as the owner hereof for all purposes, whether or not this Class A-3
Note be overdue, and neither the Company, the Trustee nor any such agent shall
be affected by notice to the contrary.

It is the intent of the Company, each Noteholder and each Note Owner that,
for Federal, state and local income and franchise tax purposes only, the Class
A-3 Notes will evidence indebtedness of the Company secured by the Series
2004-2 Collateral. Each Noteholder and each Note Owner, by the acceptance of
this Class A-3 Note, agrees to treat this Class A-3 Note for Federal, state and
local income and franchise tax purposes as indebtedness of the Company.

Each Holder of this Note shall provide to the Trustee at least annually an
appropriate statement (on Internal Revenue Service Form W-8 or suitable
substitute) with respect to United States federal income tax and withholding
tax, signed under penalties of perjury, certifying that the beneficial owner of
this Note is a non-U.S. person and providing the Noteholder’s name and address.
If the information provided in the statement changes, the Noteholder shall so
inform the Trustee within 30 days of such change.

The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Series 2004-2 Notes under the
Indenture at any time by the Company with the consent of the Holders of Series
2004-2 Notes representing more than 50% in principal amount of the aggregate
outstanding amount of the Series 2004-2 Notes which are affected by such
amendment or modification. The Indenture also contains provisions permitting
the Holders of Series 2004-2 Notes representing specified percentages of the
aggregate outstanding amount of the Series 2004-2 Notes, on behalf of the
Holders of all the Series 2004-2 Notes, to waive compliance by the Company with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Class A-3 Note (or any one or more predecessor Class A-3 Notes) shall be
conclusive and binding upon such Holder and upon all future Holders of this
Class A-3 Note and of any Class A-3 Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or not

 

 

Exhibit A-3-2

Page 8

notation of such consent or waiver is made upon this Class A-3 Note. The
Indenture also permits the Trustee to amend or waive certain terms and
conditions set forth in the Indenture without the consent of Holders of the
Series 2004-2 Notes issued thereunder.

The term “Company” as used in this Class A-3 Note includes any successor
to the Company under the Indenture.

The Class A-3 Notes are issuable only in registered form in denominations
as provided in the Indenture, subject to certain limitations set forth therein.

This Class A-3 Note and the Indenture shall be construed in accordance
with the law of the State of New York and the obligations, rights and remedies
of the parties hereunder and thereunder shall be determined in accordance with
such law.

No reference herein to the Indenture and no provision of this Class A-3
Note or of the Indenture shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of and interest on
this Class A-3 Note at the times, place, and rate, and in the coin or currency
herein prescribed.

Prior to the Exchange Date (as defined below), payments (if any) on this
Temporary Global Note will only be paid to the extent that there is presented
by Clearstream Banking, société anonyme (“Clearstream”), or Euroclear
Bank S.A./N.V., as operator of the Euroclear System (“Euroclear”) to the
Trustee at its office in London a certificate, substantially in the form set
out in Exhibit B to the Base Indenture, to the effect that it has
received from or in respect of a person entitled to a Note (as shown by its
records) a certificate from such person in or substantially in the form of
Exhibit C to the Base Indenture. After the Exchange Date the holder of
this Temporary Global Note will not be entitled to receive any payment hereon,
until this Temporary Global Note is exchanged in full for a Permanent Global
Note. This Temporary Global Note shall in all other respects be entitled to
the same benefits as the Permanent Global Notes under the Indenture.

On or after the date (the “Exchange Date”) which is the date that
is the 40th day after the completion of the distribution of the relevant
Series, interests in this Temporary Global Note may be exchanged (free of
charge) for interests in a Permanent Global Note in the form of Exhibit
A-3-3 to the Series 2004-2 Supplement upon presentation of this Temporary
Global Note at the office in London of the Trustee (or at such other place
outside the United States of America, its territories and possessions as the
Trustee may agree). The Permanent Global Note shall be so issued and delivered
in exchange for only that portion of this Temporary Global Note in respect of
which there shall have been presented to the Trustee by Euroclear or
Clearstream a certificate, substantially in the form set out in Exhibit
B to the Base Indenture, to the effect that it has received from or in
respect of a person entitled to a Note (as shown by its records) a certificate
from such person in or substantially in the form of Exhibit C to the
Base Indenture.

On an exchange of the whole of this Temporary Global Note, this Temporary
Global Note shall be surrendered to the Trustee at its office in London. On an
exchange of part

 

 

Exhibit A-3-2

Page 9

only of this Temporary Global Note, details of such exchange shall be
entered by or on behalf of the Company in Schedule A hereto and the relevant
space in Schedule A hereto recording such exchange shall be signed by or on
behalf of the Company. If, following the issue of a Permanent Global Note in
exchange for some of the Class A-3 Notes represented by this Temporary Global
Note, further Notes of this Series are to be exchanged pursuant to this
paragraph, such exchange may be effected, without the issue of a new Permanent
Global Note, by the Company or its agent endorsing Part I of Schedule A of the
Permanent Global Note previously issued to reflect an increase in the aggregate
principal amount of such Permanent Global Note by an amount equal to the
aggregate principal amount of the additional Notes of this Series to be
exchanged.

Interests in this Temporary Global Note will be transferable in accordance
with the rules and procedures for the time being of Euroclear or Clearstream.
Each person who is shown in the records of Euroclear and Clearstream as
entitled to a particular number of Class A-3 Notes by way of an interest in
this Temporary Global Note will be treated by the Company, the Trustee and any
paying agent as the holder of such number of Class A-3 Notes. For purposes of
this Temporary Global Note, the securities account records of Euroclear or
Clearstream shall, in the absence of manifest error, be conclusive evidence of
the identity of the holders of Class A-3 Notes and of the principal amount of
Class A-3 Notes represented by this Temporary Global Note credited to the
securities accounts of such holders of Class A-3 Notes. Any statement issued
by Euroclear or Clearstream to any holder relating to a specified Class A-3
Note or Class A-3 Notes credited to the securities account of such holder and
stating the principal amount of such Class A-3 Note or Class A-3 Notes and
certified by Euroclear or Clearstream to be a true record of such securities
account shall, in the absence of manifest error, be conclusive evidence of the
records of Euroclear or Clearstream for the purposes of the next preceding
sentence (but without prejudice to any other means of producing such records in
evidence). Notwithstanding any provision to the contrary contained in this
Temporary Global Note, the Company irrevocably agrees, for the benefit of such
holder and its successors and assigns, that, subject to the provisions of the
Indenture, each holder or its successors or assigns may file any claim, take
any action or institute any proceeding to enforce, directly against the
Company, the obligation of the Company hereunder to pay any amount due in
respect of each Class A-3 Note represented by this Temporary Global Note which
is credited to such holder’s securities account with Euroclear or Clearstream
without the production of this Temporary Global Note.

 

 

Exhibit A-3-2

Page 10

SCHEDULE A

SCHEDULE OF EXCHANGES FOR NOTES

REPRESENTED BY A PERMANENT GLOBAL NOTE

The following exchanges of a part of this Temporary Global Note for Class
A-3 Notes represented by a Permanent Global Note have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Part of Principal	 	 	 	 	 	 	 
	 	 	 	 	amount of this	 	 	Remaining	 	 	 	 
	 	 	 	 	Temporary Global	 	 	Principal Amount	 	 	 	 
	 	 	 	 	Note exchanged for	 	 	of this Temporary	 	 	 	 
	 	Date	 	 	Notes represented	 	 	Global Note	 	 	 	 
	 	Exchange	 	 	by a Permanent	 	 	following such	 	 	Notation made by or on	 
	 	Made	 	 	Global Note	 	 	Exchange	 	 	behalf of the Issuer	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

 

 

Exhibit A-3-3

to

Series 2004-2

Supplement

FORM OF PERMANENT GLOBAL CLASS A-3 NOTE

			
	 	 	 
	REGISTERED
	 	$                   ***
	 	 	 
	No. R-	 	 

SEE REVERSE FOR CERTAIN CONDITIONS

CUSIP (CINS) NO. U0081G BC 6

ISIN NO. USU0081GBC60

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES OR “BLUE SKY”
LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CLASS A-3 NOTE, AGREES FOR THE
BENEFIT OF AESOP FUNDING II L.L.C. (THE “COMPANY”) THAT THIS CLASS A-3
NOTE IS BEING ACQUIRED FOR ITS OWN ACCOUNT AND NOT WITH A VIEW TO DISTRIBUTION
AND MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) TO THE COMPANY
s(UPON REDEMPTION THEREOF OR OTHERWISE), (2) TO A PERSON THE TRANSFEROR
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A, (3) OUTSIDE THE UNITED STATES TO A NON-U.S. PERSON (AS SUCH TERM IS
DEFINED IN REGULATION S OF THE SECURITIES ACT) IN A TRANSACTION IN COMPLIANCE
WITH REGULATION S OF THE SECURITIES ACT, OR (4) IN A TRANSACTION COMPLYING WITH
OR EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES OR ANY OTHER JURISDICTION. EACH SUCH TRANSFER SHALL BE IN ACCORDANCE
WITH THE BASE INDENTURE, ANY APPLICABLE SUPPLEMENT AND ALL APPLICABLE
SECURITIES LAWS. THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
NOTIFY ANY PURCHASER FROM IT OF THE RESALE RESTRICTIONS SET FORTH ABOVE.

	***    Denominations of $1,000,000 and integral multiples of $200,000.
	 

 

 

Exhibit A-3-3

Page 2

EXCEPT AS OTHERWISE PROVIDED IN SECTION 2.9 OF THE BASE INDENTURE, THIS
CLASS A-3 NOTE MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER
NOMINEE OF THE CLEARING AGENCY OR TO A SUCCESSOR CLEARING AGENCY OR TO A
NOMINEE OF SUCH SUCCESSOR CLEARING AGENCY. UNLESS THIS CLASS A-3 NOTE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), TO AESOP FUNDING II L.L.C. OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CLASS A-3 NOTE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THE PRINCIPAL OF THIS CLASS A-3 NOTE IS PAYABLE IN INSTALLMENTS AS SET
FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS CLASS A-3
NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

AESOP FUNDING II L.L.C.

SERIES 2004-2 FLOATING RATE RENTAL CAR

ASSET BACKED NOTES, CLASS A-3

AESOP FUNDING II L.L.C., a Delaware limited liability company (herein
referred to as the “Company”), for value received, hereby promises to
pay to Cede & Co., or registered assigns, the principal sum of [                   ] MILLION
DOLLARS, which amount shall be payable in the amounts and at the times set
forth in the Indenture, provided, however, that the entire
unpaid principal amount of this Class A-3 Note shall be due on the Class A-3
Final Distribution Date, which is the April 2010 Distribution Date. However,
principal with respect to the Class A-3 Notes may be paid earlier or later
under certain limited circumstances described in the Indenture. The Company
will pay interest on this Class A-3 Note at the Class A-3 Note Rate. Such
interest shall be payable on each Distribution Date until the principal of this
Class A-3 Note is paid or made available for payment. Interest on this Class
A-3 Note will accrue for each Distribution Date from the most recent
Distribution Date on which interest has been paid to but excluding such
Distribution Date or, if no interest has yet been paid, from February 18, 2004.
Interest with respect to the Class A-3 Notes will be calculated in the manner
provided in the Indenture. Such principal of and interest on this Class A-3
Note shall be paid in the manner specified on the reverse hereof.

The principal of and interest on this Class A-3 Note are payable in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts. All payments made by the
Company with respect to this Class A-3

 

 

Exhibit A-3-3

Page 3

Note shall be applied first to interest due and payable on this Class A-3
Note as provided above and then to the unpaid principal of this Class A-3 Note.
This Class A-3 Note does not represent an interest in, or an obligation of
Original AESOP, AESOP Leasing, AESOP Leasing II, AFC, AGH, ARAC or any
affiliate of Original AESOP, AESOP Leasing, AESOP Leasing II, AFC, AGH, ARAC
other than the Company.

Reference is made to the further provisions of this Class A-3 Note set
forth on the reverse hereof, which shall have the same effect as though fully
set forth on the face of this Class A-3 Note. Although a summary of certain
provisions of the Indenture are set forth below and on the reverse hereof and
made a part hereof, this Class A-3 Note does not purport to summarize the
Indenture and reference is made to the Indenture for information with respect
to the interests, rights, benefits, obligations, proceeds and duties evidenced
hereby and the rights, duties and obligations of AESOP Leasing, AESOP Leasing
II, ARAC and the Trustee. A copy of the Indenture may be requested from the
Trustee by writing to the Trustee at: The Bank of New York, c/o BNY Midwest
Trust Company, 2 North LaSalle Street, 10th Floor, Chicago, Illinois 60602.
To the extent not defined herein, the capitalized terms used herein have the
meanings ascribed to them in the Indenture.

Unless the certificate of authentication hereon has been executed by the
Trustee whose name appears below by manual signature, this Class A-3 Note shall
not be entitled to any benefit under the Indenture referred to on the reverse
hereof, or be valid or obligatory for any purpose.

 

 

Exhibit A-3-3

Page 4

IN WITNESS WHEREOF, the Company has caused this instrument to be signed,
manually or in facsimile, by its Authorized Officer.

	 	 	 	 	 
	Date:                                       	 	 	 	 

	 	 	 	 	 
	 	AESOP FUNDING II L.L.C.

 	 
	 	By:  	 	 
	 	 	Name:  	  	 
	 	 	Title:  	  	 
	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Class A-3 Notes of the Series 2004-2 Notes, a series
issued under the within-mentioned Indenture.

	 	 	 	 	 
	 	THE BANK OF NEW YORK, as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

 

 

	 	 	 	 	 

Exhibit A-3-3

Page 5

[REVERSE OF CLASS A-3 NOTE]

This Class A-3 Note is one of a duly authorized issue of Class A-3 Notes
of the Company, designated as its Series 2004-2 Floating Rate Rental Car Asset
Backed Notes, Class A-3 (herein called the “Class A-3 Notes”), all
issued under (i) an Amended and Restated Base Indenture dated as of July 30,
1997 (such Base Indenture, as amended, supplemented or modified (exclusive of
any supplements thereto creating a new Series of Notes), is herein called the
“Base Indenture”), between the Company and The Bank of New York, as
successor in interest to the corporate trust administration of Harris Trust and
Savings Bank, as trustee (the “Trustee”, which term includes any
successor Trustee under the Base Indenture), and (ii) a Series 2004-2
Supplement dated as of February 18, 2004 (such supplement, as may be amended or
modified, is herein called the “Series 2004-2 Supplement”) among the
Company, the Trustee and The Bank of New York, as Series 2004-2 Agent. The
Base Indenture and the Series 2004-2 Supplement are referred to herein as the
“Indenture”. The Class A-3 Notes are subject to all terms of the
Indenture. All terms used in this Class A-3 Note that are defined in the
Indenture shall have the meanings assigned to them in or pursuant to the
Indenture.

The Class A-3 Notes are and will be equally and ratably secured by the
Series 2004-2 Collateral pledged as security therefor as provided in the
Indenture.

Principal of the Class A-3 Notes will be payable on each Distribution Date
specified in and in the amounts described in the Indenture. “Distribution
Date” means the 20th day of each month, or, if any such date is not a
Business Day, the next succeeding Business Day, commencing March 22, 2004.

Commencing on the Distribution Date following the second Determination
Date during the Class A-3 Controlled Amortization Period or the first
Determination Date after the commencement of the Series 2004-2 Rapid
Amortization Period, payments with respect to principal will be made on the
Class A-3 Notes. As described above, the entire unpaid principal amount of
this Class A-3 Note shall be due and payable on the Class A-3 Final
Distribution Date. Notwithstanding the foregoing, if an Amortization Event,
Liquidation Event of Default, Waiver Event or Series 2004-2 Limited Liquidation
Event of Default shall have occurred and be continuing then, in certain
circumstances, principal on the Class A-3 Notes may be paid earlier, as
described in the Indenture. All principal payments on the Class A-3 Notes
shall be made pro rata to the Noteholders entitled thereto.

Payments of interest on this Class A-3 Note due and payable on each
Distribution Date, together with the installment of principal then due, if any,
to the extent not in full payment of this Class A-3 Note, shall be made by wire
transfer for credit to the account designated by the Holder of record of this
Class A-3 Note (or one or more predecessor Class A-3 Notes) on the Note
Register as of the close of business on each Record Date, except that with
respect to Class A-3 Notes registered on the Record Date in the name of the
nominee of the Clearing Agency (initially, such nominee to be Cede & Co.),
payments will be made by wire transfer in immediately available funds to the
account designated by such nominee. Any reduction in the principal amount of
this Class A-3 Note (or any one or more predecessor Class A-3 Notes) effected
by any

 

 

Exhibit A-3-3

Page 6

payments made on any Distribution Date shall be binding upon all future
Holders of this Class A-3 Note and of any Class A-3 Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof,
whether or not noted thereon.

The Company shall pay interest on overdue installments of interest at the
Class A-3 Note Rate to the extent lawful.

As provided in the Indenture, the Class A-3 Notes may be redeemed, in
whole, but not in part, at the option of the Company on any Distribution Date
if on such Distribution Date the Class A-3 Invested Amount is less than or
equal to 10% of the Class A-3 Initial Invested Amount. The purchase price for
such repurchase of the Class A-3 Notes shall equal the aggregate outstanding
principal balance of such Class A-3 Notes (determined after giving effect to
any payment of principal and interest on such Distribution Date), plus
accrued and unpaid interest on such outstanding Class A-3 Invested Amount.

As provided in the Indenture and subject to certain limitations set forth
therein, the transfer of this Class A-3 Note may be registered on the Note
Register upon surrender of this Class A-3 Note for registration of transfer at
the office or agency designated by the Company pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by, the Holder hereof or his attorney
duly authorized in writing, with such signature guaranteed by an “Eligible
Guarantor Institution” (as defined in Rule 17Ad-15 under the Exchange
Act), and such other documents as the Trustee may reasonably require, and
thereupon one or more new Class A-3 Notes of authorized denominations in the
same aggregate principal amount will be issued to the designated transferee or
transferees. No service charge will be charged for any registration of
transfer or exchange of this Class A-3 Note, but the transferor may be required
to pay a sum sufficient to cover any tax or other governmental charge that may
be imposed in connection with any such registration of transfer or exchange.

Each Noteholder or Note Owner by acceptance of a Class A-3 Note or, in the
case of a Note Owner, a beneficial interest in a Class A-3 Note, covenants and
agrees that no recourse may be taken, directly or indirectly, with respect to
the obligations of the Company, AESOP Leasing, AESOP Leasing II, ARAC or the
Trustee on the Class A-3 Notes or under the Indenture or any certificate or
other writing delivered in connection therewith, against (i) the Trustee, AESOP
Leasing, AESOP Leasing II or ARAC in its individual capacity, (ii) any owner of
a beneficial interest in the Company or (iii) any partner, owner, beneficiary,
agent, officer, director or employee of the Trustee, AESOP Leasing, AESOP
Leasing II or ARAC in its individual capacity, any holder of a beneficial
interest in the Company, AESOP Leasing, AESOP Leasing II, ARAC or the Trustee
or of any successor or assign of the Trustee, AESOP Leasing, AESOP Leasing II
or ARAC in its individual capacity, except (a) as any such Person may have
expressly agreed and (b) any such partner, owner or beneficiary shall be fully
liable, to the extent provided by applicable law, for any unpaid consideration
for stock, unpaid capital contribution or failure to pay any installment or
call owing to such entity; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement
against, the assets of the Company

 

 

Exhibit A-3-3

Page 7

for any and all liabilities, obligations and undertakings contained in the
Indenture or in this Class A-3 Note, subject to Section 13.18 of the
Base Indenture.

Each Noteholder or Note Owner, by acceptance of a Note or, in the case of
a Note Owner, a beneficial interest in a Note, covenants and agrees that by
accepting the benefits of the Indenture that such Noteholder or Note Owner, as
the case may be, will not for a period of one year and one day following
payment in full of all Notes institute against the Company, or join in any
institution against the Company of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any United States
Federal or state bankruptcy or similar law in connection with any obligations
relating to the Notes, the Indenture or the Related Documents.

Prior to the due presentment for registration of transfer of this Class
A-3 Note, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Class A-3 Note (as of the day of
determination or as of such other date as may be specified in the Indenture) is
registered as the owner hereof for all purposes, whether or not this Class A-3
Note be overdue, and neither the Company, the Trustee nor any such agent shall
be affected by notice to the contrary.

It is the intent of the Company, each Noteholder and each Note Owner that,
for Federal, state and local income and franchise tax purposes only, the Class
A-3 Notes will evidence indebtedness of the Company secured by the Series
2004-2 Collateral. Each Noteholder and each Note Owner, by the acceptance of
this Class A-3 Note, agrees to treat this Class A-3 Note for Federal, state and
local income and franchise tax purposes as indebtedness of the Company.

Each Holder of this Note shall provide to the Trustee at least annually an
appropriate statement (on Internal Revenue Service Form W-8 or suitable
substitute) with respect to United States federal income tax and withholding
tax, signed under penalties of perjury, certifying that the beneficial owner of
this Note is a non-U.S. person and providing the Noteholder’s name and address.
If the information provided in the statement changes, the Noteholder shall so
inform the Trustee within 30 days of such change.

The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Series 2004-2 Notes under the
Indenture at any time by the Company with the consent of the Holders of Series
2004-2 Notes representing more than 50% in principal amount of the aggregate
outstanding amount of the Series 2004-2 Notes which are affected by such
amendment or modification. The Indenture also contains provisions permitting
the Holders of Series 2004-2 Notes representing specified percentages of the
aggregate outstanding amount of the Series 2004-2 Notes, on behalf of the
Holders of all the Series 2004-2 Notes, to waive compliance by the Company with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Class A-3 Note (or any one or more predecessor Class A-3 Notes) shall be
conclusive and binding upon such Holder and upon all future Holders of this
Class A-3 Note and of any Class A-3 Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or not

 

 

Exhibit A-3-3

Page 8

notation of such consent or waiver is made upon this Class A-3 Note. The
Indenture also permits the Trustee to amend or waive certain terms and
conditions set forth in the Indenture without the consent of Holders of the
Series Class A-3 Notes issued thereunder.

The term “Company” as used in this Class A-3 Note includes any successor
to the Company under the Indenture.

The Class A-3 Notes are issuable only in registered form in denominations
as provided in the Indenture, subject to certain limitations set forth therein.

This Class A-3 Note and the Indenture shall be construed in accordance
with the law of the State of New York and the obligations, rights and remedies
of the parties hereunder and thereunder shall be determined in accordance with
such law.

No reference herein to the Indenture and no provision of this Class A-3
Note or of the Indenture shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of and interest on
this Class A-3 Note at the times, place, and rate, and in the coin or currency
herein prescribed.

Interests in this Permanent Global Note will be transferable in accordance
with the rules and procedures for the time being of Clearstream Banking,
société anonyme (“Clearstream”), or Euroclear Bank S.A./N.V., as
operator of the Euroclear System (“Euroclear”). Each person who is
shown in the records of Euroclear and Clearstream as entitled to a particular
number of Class A-3 Notes by way of an interest in this Permanent Global Note
will be treated by the Trustee and any paying agent as the holder of such
number of Class A-3 Notes. For purposes of this Permanent Global Note, the
securities account records of Euroclear or Clearstream shall, in the absence of
manifest error, be conclusive evidence of the identity of the holders of Class
A-3 Notes and of the principal amount of Class A-3 Notes represented by this
Permanent Global Note credited to the securities accounts of such holders of
Class A-3 Notes. Any statement issued by Euroclear or Clearstream to any
holder relating to a specified Class A-3 Note or Class A-3 Notes credited to
the securities account of such holder and stating the principal amount of such
Class A-3 Note or Class A-3 Notes and certified by Euroclear or Clearstream to
be a true record of such securities account shall, in the absence of manifest
error, be conclusive evidence of the records of Euroclear or Clearstream for
the purposes of the next preceding sentence (but without prejudice to any other
means of producing such records in evidence). Notwithstanding any provision to
the contrary contained in this Permanent Global Note, the Company irrevocably
agrees, for the benefit of such holder and its successors and assigns, that,
subject to the provisions of the Indenture, each holder or its successors or
assigns may file any claim, take any action or institute any proceeding to
enforce, directly against the Company, the obligation of the Company hereunder
to pay any amount due in respect of each Class A-3 Note represented by this
Permanent Global Note which is credited to such holder’s securities account
with Euroclear or Clearstream without the production of this Permanent Global
Note.

 

 

Exhibit A-3-3

Page 9

Interests in this Permanent Global Note may be exchanged for Definitive Notes
subject to the provisions of the Indenture.

 

 

EXHIBIT B

to

Series 2004-2

Supplement

FORM OF CONSENT

The Bank of New York,
 c/o
BNY Midwest Trust Company
 as
Trustee

2 North LaSalle Street

10th Floor

Chicago, Illinois 60602

Attn:  Indenture Trust Administration

AESOP Funding II L.L.C.

c/o Lord Securities Corporation

48 Wall Street

New York, New York 10005

Attn:  Frank B. Bilotta

This Consent is delivered pursuant to the Waiver Request dated
                   ,       (the “Notice”) and the Series 2004-2 Supplement,
dated as of February 18, 2004 (as amended, modified or supplemented from time
to time, the “Series 2004-2 Supplement”) between AESOP Funding II
L.L.C., a Delaware limited liability company (“AFC-II”), and The Bank
of New York, a New York banking corporation, as Trustee (“Trustee”).
Terms used herein have the meaning provided in the Series 2004-2 Supplement.

Pursuant to Article IV of the Series 2004-2 Supplement, the Trustee has
delivered a Notice indicating that [choose which applies] [(i) the Manufacturer
Program[s] of [name of Manufacturer] [is/are] no longer [an] Eligible
Manufacturer Program[s] and that, as a result, the Series 2004-2 Maximum
Non-Program Vehicle Amount [and/or] the Series 2004-2 Maximum Non-Eligible
Manufacturer Amount is or will be exceeded or (ii) that the Lessees, the
Borrower and AFC-II have determined to increase [the Series 2004-2 Maximum
Non-Program Vehicle Amount] [the Series 2004-2 Maximum Manufacturer Amount]
[any Series 2004-2 Maximum Specified States Amount] [the Series 2004-2 Maximum
Non-Eligible Manufacturer Amount]]. The undersigned hereby waives all
requirements that the [Series 2004-2 Maximum Non-Program Vehicle Amount]
[Series 2004-2 Maximum Manufacturer Amount] [any Series 2004-2 Maximum
Specified States Amount] [Series 2004-2 Maximum Non-Eligible Manufacturer
Amount] not be exceeded for all purposes of the Indenture and the Series 2004-2
Supplement. The undersigned understands that this Consent will only be
effective if the Trustee receives Consents from Noteholders representing not
less than 25% of the aggregate unpaid principal amount of the Series 2004-2
Notes on or before                    , 20     .

 

 

Exhibit B

Page 2

The undersigned hereby represents and warrants that it is the beneficial
owner of $                    in principal amount of [Class A-1/Class A-2/Class A-3]
Series 2004-2 Notes.

	 	 	 	 	 
	 	[Name]

 	 
	 	By:  	 	 
	 	 	Name:  	  	 
	 	 	Title:  	  	 
	 

 

 

EXHIBIT C

to

Series 2004-2

Supplement

AESOP Funding II L.L.C.

Demand Note

FORM OF DEMAND NOTE

(Series 2004-2)

			
	 	 	 
	
	 	New York, New York
	$[                   ]
	 	February 18, 2004

FOR VALUE RECEIVED, the undersigned, [                   ], a [                   ] (“the
“Demand Note Issuer”), promises to pay to the order of AESOP Funding
II L.L.C., a Delaware limited liability company, or its permitted assigns
(“Holder”) on any date of demand (each, a “Demand Date”) the
principal sum of $[                   ], together with interest thereon at a rate per
annum (the “Interest Rate”) equal to LIBOR plus [     ]%, computed on
the basis of a 360-day year for the actual number of days elapsed (including
the first day but excluding the last day).

Definitions. Capitalized terms used but not defined in this Demand
Note shall have the respective meanings assigned to them in the Amended and
Restated Base Indenture, dated as of July 30, 1997 (as may be amended,
restated, supplemented or modified from time to time, exclusive of supplements
thereto creating a new Series of Notes, the “Base Indenture”), between
AESOP Funding II L.L.C., a Delaware limited liability company (the “Issuer
”) and The Bank of New York, a New York banking corporation, as successor
in interest to the corporate trust administration of Harris Trust and Savings
Bank, as trustee (the “Trustee”), as supplemented by the Series 2004-2
Supplement, dated as of February 18, 2004 (as amended, restated, supplemented
or otherwise modified from time to time, the “Series 2004-2 Supplement
”), between the Issuer and the Trustee.

Principal. The outstanding principal balance (or any portion thereof)
of this Demand Note shall be due and payable on each Demand Date to the extent
demand is made therefor by Holder. No portion of the outstanding principal
amount of this Demand Note may be voluntarily prepaid.

Interest. Interest shall be paid monthly on the 20th day (or the
first Business Day thereafter) of each calendar month commencing on March 22,
2004. In addition, interest shall be paid on each Demand Date to the extent
demand is made therefor.

Calculation of Principal and Interest. The interest shall be computed
on a monthly basis by applying the Interest Rate effective for the Series
2004-2 Interest Period to the outstanding principal balance for such Series
2004-2 Interest Period. The outstanding principal balance as of any day shall
be the outstanding principal balance as of the beginning of such day, less any
payments of principal credited to the Demand Note Issuer’s account on that day.
The records of

 

 

Exhibit C

Page 2

Holder with respect to amounts due and payments received hereunder shall be
presumed to be correct evidence thereof.

Maturity Date. On the Demand Date on which payment of the remaining
principal balance of this Demand Note is to be made, or such earlier date as
payment of the indebtedness evidenced hereby shall be due, whether by mandatory
prepayment, acceleration or otherwise (the “Maturity Date”), the
entire outstanding principal balance of this Demand Note, together with accrued
interest and any other sums then outstanding under this Demand Note, shall be
due and payable.

Payments. All payments shall be made in lawful money of the United
States of America by wire transfer in immediately available funds and shall be
applied first to fees and costs, including collection costs, if any, next to
interest and then to principal. Payments shall be made to the account
designated in the written demand for payment.

Collection Costs. The Demand Note Issuer agrees to pay all costs of
collection of this Demand Note, including, without limitation, reasonable
attorney’s fees, paralegal’s fees and other legal costs (including court costs)
incurred in connection with consultation, arbitration and litigation (including
trial, appellate, administrative and bankruptcy proceedings) regardless of
whether or not suit is brought, and all other costs and expenses incurred by
Holder exercising its rights and remedies hereunder. Such costs of collection
shall bear interest at the Default Rate until paid.

Default. (a) If the Demand Note Issuer shall fail to pay any
principal, interest or other amounts on the date of written demand for payment;
provided that such demand is made prior to 2:00 p.m. (New York City
time) on a Business Day, or on the next Business Day if written demand is made
on or after 2:00 p.m. (New York City time) on a Business Day, or (b) upon the
occurrence of an Event of Bankruptcy with respect to the Demand Note Issuer
(each, an “Event of Default”), the entire outstanding principal
balance of this Demand Note, together with all accrued and unpaid interest,
shall (x) in the case of an Event of Default under clause (a) above, at the
option of Holder and without further notice (any notice of such event being
hereby waived by the Demand Note Issuer), or (y) in the case of an Event of
Default under clause (b) above, automatically without notice (any notice of any
such event being waived by the Demand Note Issuer), become immediately due and
payable and may be collected forthwith, and Holder may exercise any and all
rights and remedies provided herein, in law or in equity.

Default Interest. After the Maturity Date or the occurrence of an
Event of Default, the outstanding principal balance of this Demand Note and, to
the extent permitted by applicable law, accrued and unpaid interest, shall bear
interest (the “Default Rate”) at the Interest Rate plus two percent
(2%) until paid in full, provided, however, in no event shall
such rate exceed the highest rate permissible under applicable law.

Waivers. The Demand Note Issuer waives all applicable exemption
rights and also waives valuation and appraisement, demand, presentment, protest
and demand, and notice of protest, demand and dishonor, and nonpayment of this
Demand Note, and agrees that Holder shall have the right, without notice, to
grant any extension or extensions of time for payment of any of said
indebtedness or any other indulgences or forbearances whatsoever.

 

 

Exhibit C

Page 3

No Waiver. No delay or omission on the part of Holder in exercising
its rights under this Demand Note, or delay or omission on the part of Holder
in exercising its rights hereunder, or course of conduct relating thereto,
shall operate as a waiver of such rights or any other right of Holder, nor
shall any waiver by Holder of any such right or rights on any one occasion be
deemed a bar to, or waiver of, the same right or rights on any future occasion.
Acceptance by Holder of any payment after its due date shall not be deemed a
waiver of the right to require prompt payment when due of all other sums, and
acceptance of any payment after Holder has declared the indebtedness evidenced
by this Demand Note due and payable shall not cure any Event of Default or
operate as a waiver of any right of Holder.

Modifications. No amendment, modification or waiver of, or consent
with respect to, any provision of this Demand Note shall in any event be
effective unless (a) the same shall be in writing and signed and delivered by
each of Holder and the Demand Note Issuer and (b) all consents required for
such actions under the Base Indenture and the Related Documents shall have been
received by the appropriate Persons.

Binding Effect. This Demand Note shall be binding upon the Demand
Note Issuer and its successors and assigns, and shall inure to the benefit of
Holder and its successors and assigns.

Governing Law. THIS DEMAND NOTE HAS BEEN DELIVERED IN NEW YORK, NEW
YORK AND SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE LAWS
OF THE STATE OF NEW YORK.

No Negotiation. This Demand Note is not negotiable other than to the
Trustee for the benefit of the secured parties under the Series 2004-2
Supplement. The parties intend that this Demand Note will be pledged by the
initial Holder to the Trustee for the benefit of the secured parties under the
Series 2004-2 Supplement and the Demand Note Issuer consents and agrees
thereto. Upon such pledge, this Demand Note shall be subject to all of the
rights and remedies of the Trustee in the Base Indenture, the Series 2004-2
Supplement and the other Related Documents and payments hereunder shall be made
only to said Trustee.

Reduction of Principal. The principal amount of this Demand Note may
be reduced only in accordance with the provisions of the Series 2004-2
Supplement.

Acknowledgment. The Demand Note Issuer hereby acknowledges receipt of
[cash/capital contribution] on the date of the issuance of this Demand Note in
the principal amount of $[                   ].

Captions. Paragraph captions used in this Demand Note are provided
solely for convenience of reference only and shall not affect the meaning or
interpretation of any provision of this Demand Note.

[Remainder of Page Intentionally Left Blank]

 

 

Exhibit C

Page 4

IN WITNESS WHEREOF, the undersigned has executed this Demand Note or
caused this Demand Note to be duly executed by its officer thereunto duly
authorized as of the day and year first above written.

	 	 	 	 	 
	 	[DEMAND NOTE ISSUER]

 	 
	 	By:  	 	 
	 	 	Name:  	  	 
	 	 	Title:  	  	 
	 

ENDORSEMENT

Pay to the Order of                                         , without
recourse

	 	 	 	 	 
	 	AESOP FUNDING II L.L.C.

 	 
	 	By:  	 	 
	 	 	Name:  	  	 
	 	 	Title:  	  	 

 

 

	 	 	 	 	 

Exhibit C

Page 5

PAYMENT GRID

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Date	 	 	Principal	 	 	Amount of Principal	 	 	Outstanding	 	 	Notation	 
	 	 	 	 	Amount	 	 	Payment	 	 	Principal	 	 	Made	 
	 	 	 	 	 	 	 	 	 	 	Balance	 	 	By	 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 	 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 	 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 	 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 	 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 	 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 	 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 	 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 	 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 	 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 	 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 	 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 	 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 	 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 	 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 	 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 	 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 	 
	 

 

 

EXHIBIT D

to

Series 2004-2

Supplement

FORM OF IRREVOCABLE SERIES 2004-2 LETTER OF CREDIT

No.[ ]

                         , 200 

The Bank of New York, as Trustee

c/o BNY Midwest Trust Company

2 North LaSalle Street

10th Floor

Chicago, Illinois 60602

Attention:

Dear Sir or Madam:

The undersigned (“Series 2004-2 Letter of Credit Provider”)
hereby establishes, at the request and for the account of Cendant Corporation,
a Delaware corporation (“Cendant”), pursuant to, and in accordance
with, that certain Three Year Competitive Advance and Revolving Credit
Agreement, dated as of December 10, 2002 (as amended, supplemented, restated or
otherwise modified from time to time in accordance with the terms thereof, the
“Credit Agreement”), among Cendant and the financial institutions
party thereto (collectively, the “Series 2004-2 Letter of Credit Providers”),
in accordance with the terms of such Credit Agreement (i) in your favor
in respect of Lease Deficit Demands (as defined below), (ii) in your favor in
respect of Unpaid Demand Note Demands (as defined below), (iii) in your favor
in respect of Termination Demands (as defined below) and (iv) in your favor in
respect of Termination Date Demands (as defined below), this Irrevocable Letter
of Credit No. [                   ], in an aggregate maximum amount of [                   ]
DOLLARS ($[                   ]) (such amount, as the same may be reduced and reinstated
from time to time as provided herein, being the “Letter of Credit Amount”),
effective immediately and expiring at 4:00 p.m. (New York time) at our
[     ] office located at [                   ] Attention: [     ],
Telephone No.: [                   ], Facsimile No.: [     ] (such office or any
other office which may be designated by the Series 2004-2 Letter of Credit
Provider by written notice delivered to you, being the “Series 2004-2
Letter of Credit Provider’s Office”) on the date (the “Expiration Date”)
that is the earlier of (i)                     200  or such later date to which
the term of this Series 2004-2 Letter of Credit is extended (or, if such date
is not a Business Day, the immediately succeeding Business Day) (the “
Scheduled Expiration Date”) and (ii) the date on which we receive written
notice from you that the Series 2004-2 Letter of Credit Termination Date shall
have occurred. You are the trustee under that certain Amended and Restated
Base Indenture (the “Base Indenture”), dated as of July 30, 1997,
between you (the “Trustee”) and AESOP Funding II L.L.C. (“AFC-II”),
as the same may be amended, supplemented or otherwise modified from
time to time. “Series 2004-2 Supplement” means the Series 2004-2
Supplement, dated as of February 18, 2004, between AFC-II and the Trustee, to
the Base Indenture, as the same may be amended,

 

 

Exhibit D

Page 2

supplemented, restated or otherwise modified from time to time.
Capitalized terms used herein and in the Annexes hereto and not otherwise
defined herein shall have the meaning set forth in the Series 2004-2 Supplement
and the Base Indenture.

The Series 2004-2 Letter of Credit Provider irrevocably authorizes you to
draw on it, in accordance with the terms and conditions and subject to the
reductions in amount as hereinafter set forth, (1) in one or more drawings by
the Trustee pursuant to the Trustee’s written and completed certificate signed
by the Trustee in the form of Annex A attached hereto (any such
certificate being a “Lease Deficit Demand”), each presented to the
Series 2004-2 Letter of Credit Provider at the Series 2004-2 Letter of Credit
Provider’s Office, payable at sight on a Business Day (as defined below), in
each case, in an amount equal to the amount set forth in such Lease Deficit
Demand but in the aggregate amount not exceeding the Letter of Credit Amount as
in effect on such Business Day, (2) in one or more drawings by the Trustee
pursuant to the Trustee’s written and completed certificate signed by the
Trustee in the form of Annex B attached hereto (such certificate being
an “Unpaid Demand Note Demand”), each presented to the Series 2004-2
Letter of Credit Provider at the Series 2004-2 Letter of Credit Provider’s
Office, payable at sight on a Business Day, in each case, in an amount equal to
the amount set forth in such Unpaid Demand Note Demand but not in the aggregate
exceeding the Letter of Credit Amount as in effect on such Business Day, (3) in
a single drawing by the Trustee pursuant to the Trustee’s written and completed
certificate signed by the Trustee in the form of Annex C attached
hereto (such certificate being a “Termination Demand”), presented to
the Series 2004-2 Letter of Credit Provider at the Series 2004-2 Letter of
Credit Provider’s Office, payable at sight on a Business Day, in an amount
equal to the amount set forth in such Termination Demand but not exceeding the
Letter of Credit Amount as in effect on such Business Day, provided that only
one such Termination Demand may be made hereunder and (4) in a single drawing
by the Trustee pursuant to the Trustee’s written and completed certificate
signed by the Trustee in the form of Annex D attached hereto (such
certificate being a “Termination Date Demand”), presented to the
Series 2004-2 Letter of Credit Provider at the Series 2004-2 Letter of Credit
Provider’s Office, payable at sight on a Business Day, in an amount equal to
the amount set forth in such Termination Date Demand but not exceeding the
Letter of Credit Amount as in effect on such Business Day, provided that only
one such Termination Date Demand may be made hereunder. In the event that
there is more than one draw request payable on the same Business Day, the draw
requests shall be honored in the following order: (1) the Lease Deficit Demand;
(2) the Unpaid Demand Note Demand; (3) the Termination Demand and (4) the
Termination Date Demand; provided that in no event shall the Series 2004-2
Letter of Credit Provider be required to honor any draw request to the extent
such draw request is in an amount greater than the Letter of Credit Amount at
such time after giving effect to all other draw requests honored on such day.
Upon the honoring of a Termination Date Demand in full, the Series 2004-2
Letter of Credit Provider shall have no obligation to honor any other draw
request. Any payments made by the Series 2004-2 Letter of Credit Provider
shall be paid from funds of the Series 2004-2 Letter of Credit Provider. Any
Lease Deficit Demand, Unpaid Demand Note Demand, Termination Demand or
Termination Date Demand may be delivered by facsimile transmission to the
Series 2004-2 Letter of Credit Provider’s Office as herein provided. “
Business Day” means any day other than a Saturday, Sunday or other day on
which banks are required or authorized by la
w to close in New York City, New
York or Chicago, Illinois. Upon the Series

 

 

Exhibit D

Page 3

2004-2 Letter of Credit Provider’s honoring any Lease Deficit Demand,
Unpaid Demand Note Demand, Termination Demand or Termination Date Demand
presented hereunder, the Letter of Credit Amount shall automatically be
decreased by an amount equal to the amount of the Lease Deficit Demand, Unpaid
Demand Note Demand, Termination Demand or Termination Date Demand paid by the
Series 2004-2 Letter of Credit Provider to the Trustee. In addition to the
foregoing reduction, upon the Series 2004-2 Letter of Credit Provider’s
honoring any Termination Date Demand presented to it hereunder in full, the
Letter of Credit Amount shall automatically be reduced to zero and this Series
2004-2 Letter of Credit shall be terminated.

The Letter of Credit Amount shall be automatically reinstated when and to
the extent, but only when and to the extent, that (i) the Series 2004-2 Letter
of Credit Provider is reimbursed by AFC-II, the Lessee, AGH or Cendant for any
amount drawn hereunder as a Lease Deficit Demand or Unpaid Demand Note Demand,
(ii) the Series 2004-2 Letter of Credit Provider receives written notice from
Cendant in the form of Annex E hereto that the Letter of Credit Amount
should be reinstated in an amount set forth therein (which shall equal the
amount reimbursed pursuant to clause (i)) and that no Event of Bankruptcy (as
defined in Annex E attached hereto) with respect to Cendant or the
Lessee has occurred and is continuing and (iii) this Series 2004-2 Letter of
Credit has not been terminated in accordance with the terms hereof.

Each Lease Deficit Demand, Unpaid Demand Note Demand, Termination Demand
and Termination Date Demand shall be dated the date of its presentation, shall
have a cover letter clearly marked “PAYMENT DEMAND-IMMEDIATE ACTION REQUIRED”
and shall be presented to the Series 2004-2 Letter of Credit Provider at the
Series 2004-2 Letter of Credit Provider’s Office. If the Series 2004-2 Letter
of Credit Provider receives any Lease Deficit Demand, Unpaid Demand Note
Demand, Termination Demand or Termination Date Demand at such office on or
prior to the Scheduled Expiration Date, all in conformity with the terms and
conditions of this Series 2004-2 Letter of Credit, not later than 12:00 noon
(New York City time) on a Business Day, the Series 2004-2 Letter of Credit
Provider will make such funds available by 4:00 p.m. (New York City time) on
the same day in accordance with your payment instructions. If the Series
2004-2 Letter of Credit Provider receives any Lease Deficit Demand, Unpaid
Demand Note Demand, Termination Demand or Termination Date Demand at such
office on or prior to the termination hereof, all in conformity with the terms
and conditions of this Letter of Credit, after 12:00 noon (New York City time)
on a Business Day, the Series 2004-2 Letter of Credit Provider will make the
funds available by 4:00 p.m. (New York City time) on the next succeeding
Business Day in accordance with your payment instructions. If you so request
the Series 2004-2 Letter of Credit Provider, payment under this Letter of
Credit may be made by wire transfer of Federal Reserve Bank of New York funds
to your account in a bank on the Federal Reserve wire system or by deposit of
same day funds into a designated account.

Upon the earliest of (i) the date on which the Series 2004-2 Letter of
Credit Provider honors a Termination Date Demand presented hereunder, (ii) the
date on which the Series 2004-2 Letter of Credit Provider receives written
notice from you that this Series 2004-2 Letter of Credit has been replaced by
an alternate letter of credit and such alternate letter of credit has been
received by you, (iii) the date on which the Series 2004-2 Letter of Credit
Provider receives written notice from you in the form attached hereto as 
Annex F, and (iv) the Scheduled Expiration Date, this Series 2004-2 Letter
of Credit shall automatically terminate and

 

 

Exhibit D

Page 4

you shall surrender this Series 2004-2 Letter of Credit to the undersigned
Series 2004-2 Letter of Credit Provider on such day.

For purposes of the certificates to be delivered by you in the form
attached hereto as Annexes A ,B and D: “Pro
Rata Share” means, with respect to any Series 2004-2 Letter of Credit
Provider as of any date, the fraction (expressed as a percentage) obtained by
dividing (A) such Series 2004-2 Letter of Credit Provider’s Letter of Credit
Amount as of such date by (B) an amount equal to the aggregate amount of the
Letter of Credit Amounts of all the Series 2004-2 Letter of Credit Providers
under their respective Series 2004-2 Letters of Credit as of such date; 
provided, that only for purposes of calculating the Pro Rata Share with
respect to any Series 2004-2 Letter of Credit Provider as of any date, if such
Series 2004-2 Letter of Credit Provider has not complied with its obligation to
pay the Trustee the amount of any Lease Deficit Demand, Unpaid Demand Note
Demand, Termination Demand or Termination Date Demand (as defined in the
related Series 2004-2 Letter of Credit) made prior to such date, such Series
2004-2 Letter of Credit Provider’s Letter of Credit Amount, as of such date
shall be treated as reduced (for calculation purposes only) by the amount of
such unpaid Lease Deficit Demand, Unpaid Demand Note Demand, Termination Demand
or Termination Date Demand, as the case may be, and shall not be reinstated for
purposes of such calculation unless and until the date as of which such Series
2004-2 Letter of Credit Provider has paid such amount to the Trustee and been
reimbursed by the Lessee, AGH or Cendant, 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
Lease Deficit Demand, Unpaid Demand Note Demand, Termination Demand or
Termination Date Demand).

This Letter of Credit is transferable in its entirety to any transferee(s)
who you certify to the Series 2004-2 Letter of Credit Provider has succeeded
you, as Trustee, and may be successively transferred. Transfer of this 2004-2
Letter of Credit to such transferee shall be effected by the presentation to
the Series 2004-2 Letter of Credit Provider of this Series 2004-2 Letter of
Credit accompanied by a certificate in the form of Annex G attached
hereto. Upon such presentation the Series 2004-2 Letter of Credit Provider
shall forthwith transfer this 2004-2 Letter of Credit to the transferee.

This Series 2004-2 Letter of Credit sets forth in full the undertaking of
the Series 2004-2 Letter of Credit Provider, and such undertaking shall not in
any way be modified, amended, amplified or limited by reference to any
document, instrument or agreement referred to herein, except only the
certificates referred to herein; and any such reference shall not be deemed to
incorporate herein by reference any document, instrument or agreement except
for such certificates. In furtherance of the foregoing, with regard to any
conflict between the terms hereof and those contained in the Credit Agreement,
the terms hereof shall govern.

On the Business Day immediately following any Distribution Date on which
the Series 2004-2 Invested Amount shall have been reduced (each a “Decrease
Day”), the Letter of Credit Amount may be reduced upon prior written
notice (which may be by facsimile transmission with telephone confirmation of
receipt as herein provided) delivered to the Series 2004-2 Letter of Credit
Provider on or before such Decrease Day purportedly signed by the Administrator
by an amount (which will be expressed in United States Dollars in such notice)
set

 

 

Exhibit D

Page 5

forth in such notice equal to the lesser of the Pro Rata Share of (1) the
excess, if any, of the Series 2004-2 Enhancement Amount over the Series 2004-2
Required Enhancement Amount and (2) the excess, if any, of the Series 2004-2
Liquidity Amount over the Series 2004-2 Required Liquidity Amount, in the case
of (1) and (2) calculated as of the immediately preceding Distribution Date
after giving effect to all payments of principal on such Decrease Day with
respect to the Series 2004-2 Notes.

Making a non-complying drawing, withdrawing a drawing or failing to make
any drawing does not waive or otherwise prejudice the right to make another
timely drawing or a timely redrawing. Article 41 of the Uniform Customs (as
defined below) shall not apply to this Series 2004-2 Letter of Credit.

This Series 2004-2 Letter of Credit is subject to the Uniform Customs and
Practice for Documentary Credits, 1993 Revision, ICC Publication No. 500 (the
"Uniform Customs”), except that notwithstanding any provisions of
Article 17 of the Uniform Customs which contains provisions to the contrary, if
this Letter of Credit expires during an interruption of business (as described
in Article 17), we agree to effect payment under this Letter of Credit, if a
drawing which conforms to the terms and conditions of this Letter of Credit is
made within twenty (20) days after the resumption of business, and, as to
matters not covered by the Uniform Customs, shall be governed by the law of the
State of New York, including the Uniform Commercial Code as in effect in the
State of New York. Communications with respect to this Series 2004-2 Letter
of Credit shall be in writing and shall be addressed to the Series 2004-2
Letter of Credit Provider at the Series 2004-2 Letter of Credit Provider’s
Office, specifically referring to the number of this Series 2004-2 Letter of
Credit.

Very truly yours,

	 	 	 	 	 
	 	Very truly yours,

[Series 2004-2 Letter of Credit Provider]

 	 
	 	By:  	 	 
	 	 	Name:  	  	 
	 	 	Title:  	  	 

 

 

	 	 	 	 	 

ANNEX A

CERTIFICATE OF LEASE DEFICIT DEMAND

[Series 2004-2 Letter of Credit Provider]

[Address]

Attention: [                                        ]

Certificate of Lease Deficit Demand under the Irrevocable Letter of Credit
No. [                    ] (the “Series 2004-2 Letter of Credit”; the terms
defined therein and not otherwise defined herein being used herein as therein
defined), dated                          , 200 , issued by                    , as the Series
2004-2 Letter of Credit Provider, in favor of The Bank of New York, as the
trustee (the “Trustee”), under that certain Amended and Restated Base
Indenture, dated as of July 30, 1997, between the Trustee and AESOP Funding II
L.L.C. (“AFC-II”), as supplemented by that certain Series 2004-2
Supplement thereto (the “Series 2004-2 Supplement”), dated as of
February 18, 2004, between AFC-II and the Trustee (the “Indenture”).

The undersigned, a duly authorized officer of the Trustee, hereby
certifies to the Series 2004-2 Letter of Credit Provider as follows:

1.      [                                        ] is the Trustee under the Indenture.

2.      [The Trustee is making a drawing under the Series 2004-2 Letter of
Credit as required by Section 2.3(c) of the Series 2004-2 Supplement in an
amount equal to $                    (the “Interest Lease Deficit Disbursement”),
which amount is equal to the lesser of (i) the product of the Series 2004-2
Letter of Credit Provider’s Pro Rata Share as of the date hereof and the lesser
of (x) the Series 2004-2 Lease Interest Payment Deficit and (y) the excess, if
any, of (A) the sum of (I) the sum of (1) Series 2004-2 Monthly Interest for
the Series 2004-2 Interest Period ending on the day preceding the date hereof,
(2) any Fixed Rate Payment for the next succeeding Distribution Date, (3) any
unpaid Series 2004-2 Shortfall as of the preceding Distribution Date, together
with accrued interest thereon and (4) the Surety Provider Fee for such Series
2004-2 Interest Period plus any Surety Provider Reimbursement Amounts then due
and owing and (II) during the Series 2004-2 Rapid Amortization Period, the
Series 2004-2 Trustee’s Fees for the date hereof over (B) the amounts available
from the Series 2004-2 Accrued Interest Account on the date hereof and (ii) the
Letter of Credit Amount as in effect on the date of this certificate.] [The
Trustee is making a drawing under the Series 2004-2 Letter of Credit as
required by Section 2.5(b) of the Series 2004-2 Supplement in an amount equal
to $                    (the “Principal Lease Deficit Disbursement”), which
amount is equal to the lesser of (i) the product of the Series 2004-2 Letter of
Credit Provider’s Pro Rata Share as of the date hereof and the Series 2004-2
Lease Principal Payment Deficit and (ii) the Letter of Credit Amount as in
effect on the date of this certificate. The “Lease Deficit Disbursement” on any day shall be the sum of the Interest Lease Deficit Disbursement
and the Principal Lease Deficit Disbursement.

3.      Concurrently with the draw being demanded hereby, the undersigned is
making a draw under each of the other Series 2004-2 Letters of Credit in an
amount equal to the

 

 

Annex A

Page 2

related other Series 2004-2 Letter of Credit Providers’ Pro Rata Share of the
amount to be drawn on the Series 2004-2 Letters of Credit pursuant to Section
2.3(c) and/or Section 2.5(b) of the Series 2004-2 Supplement on the date
hereof.

4.      The Series 2004-2 Lease Payment Deficit is attributable to the Lessee’s
failure to pay amounts due under the Leases.

5.      You are requested to deliver an amount equal to the Lease Deficit
Disbursement pursuant to the following instructions:

[insert payment instructions for wire to the

Trustee and payment date]

6.      The Trustee acknowledges that, pursuant to the terms of the Series
2004-2 Letter of Credit, upon the Series 2004-2 Letter of Credit Provider’s
honoring in full the draw amount set forth in this certificate, the Letter of
Credit Amount shall be automatically reduced by an amount equal to the amount
paid by the Series 2004-2 Letter of Credit Provider in respect of such draw.

IN WITNESS WHEREOF, the Trustee has executed and delivered this
certificate on this       day of                   ,      .

	 	 	 	 	 
	 	[                                        ],

             as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	  	 
	 	 	Title:  	  	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	  	 
	 	 	Title:  	  	 

 

 

	 	 	 	 	 

ANNEX B

CERTIFICATE OF UNPAID DEMAND NOTE DEMAND

[Series 2004-2 Letter of Credit Provider]

[Address]

Attention: [                    ]

Certificate of Unpaid Demand Note Demand under the Irrevocable Letter of
Credit No. [     ] (the “Series 2004-2 Letter of Credit”; the terms
defined therein and not otherwise defined herein being used herein as therein
defined), dated as of                          , 200 , issued by                    , as the
Series 2004-2 Letter of Credit Provider, in favor of The Bank of New York, as
the trustee (the “Trustee”), under that certain Amended and Restated
Base Indenture, dated as of July 30, 1997 between the Trustee and AESOP Funding
II L.L.C. (“AFC-II”), as amended or supplemented (exclusive of any
supplement thereto creating a new Series of Notes), and as further supplemented
by that certain Series 2004-2 Supplement thereto (the “Series 2004-2
Supplement”), dated as of February 18, 2004, between AFC-II and the
Trustee (the “Indenture”).

The undersigned, a duly authorized officer of the Trustee, hereby
certifies to the Series 2004-2 Letter of Credit Provider as follows:

1.      [                    ] is the Trustee under the Indenture.

2.      The Trustee is making a drawing under the Series 2004-2 Letter of
Credit as required by Section 2.5[(c)(ii)][(d)(ii)] of the Series
2004-2 Supplement in an amount equal to $                    (the “Unpaid Demand Note
Disbursement”), which amount is equal to the lesser of (i) the product of
the Series 2004-2 Letter of Credit Provider’s Pro Rata Share as of the date
hereof and the Series 2004-2 Unpaid Demand Amount and (ii) the Letter of Credit
Amount as in effect on the date of this certificate.

3.      Concurrently with the draw being demanded hereby, the undersigned is
making a draw under each of the other Series 2004-2 Letters of Credit in an
amount equal to the related other Series 2004-2 Letter of Credit Providers’ Pro
Rata Share of the Series 2004-2 Unpaid Demand Amount.

4.      You are requested to deliver an amount equal to the Unpaid Demand Note
Disbursement pursuant to the following instructions:

[Insert payment instructions for wire to the

Trustee and payment date]

5.      The Trustee acknowledges that, pursuant to the terms of the Series
2004-2 Letter of Credit, upon the Series 2004-2 Letter of Credit Provider’s
honoring in full the draw

 

 

Annex B

Page 2

amount set forth in this certificate, the Letter of Credit Amount shall be
automatically decreased by an amount equal to such draw.

IN WITNESS WHEREOF, the Trustee has executed and delivered this
certificate on this       day of                    ,      .

	 	 	 	 	 
	 	[                                        ],

             as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	  	 
	 	 	Title:  	  	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	  	 
	 	 	Title:  	  	 
	 

 

 

ANNEX C

CERTIFICATE OF TERMINATION DEMAND

[Series 2004-2 Letter of Credit Provider]

[Address]

Attention: [                    ]

Certificate of Termination Demand under the Irrevocable Letter of Credit
No. [     ] (the “Series 2004-2 Letter of Credit”; the terms defined
therein and not otherwise defined herein being used herein as therein defined),
dated as of                          , 200 , issued by                    , as the Series 2004-2
Letter of Credit Provider, in favor of The Bank of New York, as the trustee
(the “Trustee”), under that certain Amended and Restated Base
Indenture, dated as of July 30, 1997, between the Trustee and AESOP Funding II
L.L.C. (“AFC-II”), as amended or supplemented (exclusive of any
supplement thereto creating a new Series of Notes), and as further supplemented
by that certain Series 2004-2 Supplement thereto (the “Series 2004-2
Supplement”), dated as of February 18, 2004, between AFC-II and the
Trustee (the “Indenture”).

The undersigned, a duly authorized officer of the Trustee, hereby
certifies to the Series 2004-2 Letter of Credit Provider as follows:

1.      [                    ] is the Trustee under the Indenture.

2.      The Trustee is making a drawing under the Series 2004-2 Letter of
Credit as required by Section 2.8[(b)] [(c)] of the Series 2004-2
Supplement in an amount equal to $                    (the “Termination
Disbursement”), which amount is equal to the lesser of (i) the greater of
(A) the excess, if any, of the Series 2004-2 Required Enhancement Amount over
the Series 2004-2 Enhancement Amount, excluding the Letter of Credit Amount as
in effect on the date of this certificate and (B) the excess, if any, of the
Series 2004-2 Required Liquidity Amount over the Series 2004-2 Liquidity
Amount, excluding the Letter of Credit Amount on the date of this certificate
and (ii) the Letter of Credit Amount as in effect on the date of this
certificate.

3.      You are requested to deliver an amount equal to the Termination
Disbursement pursuant to the following instructions:

[Insert payment instructions for wire to the

Trustee and payment date]

4.      The Trustee acknowledges that, pursuant to the terms of the Series
2004-2 Letter of Credit, upon the Series 2004-2 Letter of Credit Provider’s
honoring in full the draw amount set forth in this certificate, the Letter of
Credit Amount shall be automatically reduced to zero and the Series 2004-2
Letter of Credit shall terminate and be immediately returned to the Series
2004-2 Letter of Credit Provider.

 

 

Annex C

Page 2

IN WITNESS WHEREOF, the Trustee has executed and delivered this
certificate on this       day of                    ,      .

	 	 	 	 	 
	 	[                                        ],

            as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	  	 
	 	 	Title:  	  	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	  	 
	 	 	Title:  	  	 

 

 

	 	 	 	 	 

ANNEX D

CERTIFICATE OF TERMINATION DATE DEMAND

[Series 2004-2 Letter of Credit Provider]

[Address]

Attention: [                    ]

Certificate of Termination Date Demand under the Irrevocable Letter of
Credit No. [ ] (the “Series 2004-2 Letter of Credit”; the terms
defined therein and not otherwise defined herein being used herein as therein
defined), dated as of                          , 200_, issued by                    , as the
Series 2004-2 Letter of Credit Provider, in favor of The Bank of New York, as
the trustee (the “Trustee”), under that certain Amended and Restated
Base Indenture, dated as of July 30, 1997, between the Trustee and AESOP
Funding II L.L.C. (“AFC-II”), as amended or supplemented (exclusive of
any supplement thereto creating a new Series of Notes), and as further
supplemented by that certain Series 2004-2 Supplement thereto (the “Series
2004-2 Supplement”), dated as of February 18, 2004, between AFC-II and the
Trustee (the “Indenture”).

The undersigned, a duly authorized officer of the Trustee, hereby
certifies to the Series 2004-2 Letter of Credit Provider as follows:

1.      [                    ] is the Trustee under the Indenture.

2.      The Trustee is making a drawing under the Series 2004-2 Letter of
Credit as required by Section 2.8(d) of the Series 2004-2 Supplement
in an amount equal to $           
        (the “Termination Date Disbursement”), which amount is equal to the lesser of (i) the product of the Series
2004-2 Letter of Credit Provider’s Pro Rata Share as of the date hereof and the
Series 2004-2 Demand Note Payment Amount and (ii) the Letter of Credit Amount
as in effect on the date of this certificate.

3.      Concurrently with the draw being demanded hereby, the undersigned is
making a draw under each of the other Series 2004-2 Letters of Credit in an
amount equal to the related other Series 2004-2 Letter of Credit Providers’ Pro
Rata Share of the Series 2004-2 Demand Note Payment Amount.

4.      You are requested to deliver an amount equal to the Termination Date
Disbursement pursuant to the following instructions:

[insert payment instructions for wire to the

Trustee and payment date]

5.      The Trustee acknowledges that, pursuant to the terms of the Series
2004-2 Letter of Credit, upon the Series 2004-2 Letter of Credit Provider’s
honoring in full the draw amount set forth in this certificate, the Letter of
Credit Amount shall be automatically reduced to

 

 

Annex D

Page 2

zero and the Series 2004-2 Letter of Credit shall terminate and be
immediately returned to the Series 2004-2 Letter of Credit Provider.

IN WITNESS WHEREOF, the Trustee has executed and delivered this
certificate on this       day of                    ,      .

	 	 	 	 	 
	 	[                                        ],

        as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	  	 
	 	 	Title:  	  	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	  	 
	 	 	Title:  	  	 

 

 

	 	 	 	 	 

ANNEX E

CERTIFICATE OF REINSTATEMENT OF LETTER OF CREDIT AMOUNT

[Series 2004-2 Letter of Credit Provider]

[Address]

Attention: [                    ]

Certificate of Reinstatement of Letter of Credit Amount under the
Irrevocable Letter of Credit No. [                    ] (the “Series 2004-2 Letter of Credit”; the terms defined therein and not otherwise defined herein being used
herein as therein defined), dated as of                          , 200 , issued by
                   , as the Series 2004-2 Letter of Credit Provider, in favor of
The Bank of New York, as the trustee (the “Trustee”) under that
certain Amended and Restated Base Indenture, dated as of July 30, 1997, between
the Trustee and AESOP Funding II L.L.C. (“AFC-II”), as amended or
supplemented (exclusive of any supplement thereto creating a new Series of
Notes), and as further supplemented by that certain Series 2004-2 Supplement
thereto (the “Series 2004-2 Supplement”), dated as of February 18,
2004, between AFC-II and the Trustee (the “Indenture”).

The undersigned, a duly authorized officer of Cendant Corporation (“Cendant”), hereby certifies to the Series 2004-2 Letter of Credit Provider
as follows:

          1. As of the date of this certificate, the Series 2004-2 Letter of
Credit Provider has been reimbursed by [                    ] in the amount of $[                    ] (the “Reimbursement Amount”) in respect of the [Lease Deficit Demand] [Unpaid
Demand Note Demand] made on                    ,      .

          2. Cendant hereby notifies you that, pursuant to the terms and
conditions of the Series 2004-2 Letter of Credit, the Letter of Credit
Amount of the Series 2004-2 Letter of Credit Provider is hereby reinstated
in the amount of $[                    ] [NOT TO EXCEED REIMBURSEMENT AMOUNT] so that the
Letter of Credit Amount of the Series 2004-2 Letter of Credit Provider after
taking into account such reinstatement is in amount equal to $[                    ] [NOT TO
EXCEED MAXIMUM AMOUNT OF LETTER OF CREDIT PRIOR TO DRAWING].

          3. As of the date of this Certificate, no Event of Bankruptcy with
respect to Cendant or the Lessee has occurred and is continuing. “Event
of Bankruptcy”, with respect to the Lessee or Cendant, means (a) a case
or other proceeding shall be commenced, without the application or consent
of such Person, in any court, seeking the liquidation, reorganization, debt
arrangement, dissolution, winding up, or composition or readjustment of
debts of such Person, the appointment of a trustee, receiver, custodian,
liquidator, assignee, sequestrator or the like for such Person or all or any
substantial part of its assets, or any similar action with respect to such
Person under any law relating to bankruptcy, insolvency, reorganization,
winding up or composition or adjustment of debts, and such case or
proceeding shall continue undismissed, or unstayed and in effect, for a
period of 60 consecu-

 

 

Annex E

Page 2

tive days; or an order for relief in respect of such Person shall be
entered in an involuntary case under the federal bankruptcy laws or other
similar laws now or hereafter in effect; or (b) such Person shall commence a
voluntary case or other proceeding under any applicable bankruptcy,
insolvency, reorganization, debt arrangement, dissolution or other similar
law now or hereafter in effect, or shall consent to the appointment of or
taking possession by a receiver, liquidator, assignee, trustee, custodian,
sequestrator (or other similar official) for such Person or for any
substantial part of its property, or shall make any general assignment for
the benefit of creditors; or (c) the board of directors of such Person (if
such Person is a corporation or similar entity) shall vote to implement any
of the actions set forth in clause (b) above.

IN WITNESS WHEREOF, Cendant has executed and delivered this certificate on
this       day of                    ,      .

	 	 	 	 	 
	 	CENDANT CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	  	 
	 	 	Title:  	  	 
	 

Acknowledged and Agreed:

The undersigned hereby acknowledges receipt of the Reimbursement Amount (as
defined above) in the amount set forth above and agrees for the benefit of the
Trustee that the undersigned’s Letter of Credit Amount is in an amount equal to
$                    as of the date hereof after taking into account the reinstatement
of the undersigned’s Letter of Credit Amount by an amount equal to the
Reimbursement Amount.

	 	 	 	 	 	 
	[Series 2004-2 Letter of Credit Provider]

 	 
	By:  	 	 
	 	 	Name:  	  	 
	 	 	Title:  	  	 
	 

 

 

ANNEX F

CERTIFICATE OF TERMINATION

[Series 2004-2 Letter of Credit Provider]

[Address]

Attention: [                    ]

Certificate of Termination of Letter of Credit Amount under the
Irrevocable Letter of Credit No. [                    ] (the “Series 2004-2 Letter of Credit”; the terms defined therein and not otherwise defined herein being used
herein as therein defined), dated as of                          , 200 , issued by
                   , as the Series 2004-2 Letter of Credit Provider, in favor of
The Bank of New York, as the trustee (the “Trustee”) under that
certain Amended and Restated Base Indenture, dated as of July 30, 1997, between
the Trustee and AESOP Funding II L.L.C. (“AFC-II”), as amended or
supplemented (exclusive of any supplement thereto creating a new Series of
Notes), and as further supplemented by that certain Series 2004-2 Supplement
thereto (the “Series 2004-2 Supplement”), dated as of February 18,
2004, between AFC-II and the Trustee (the “Indenture”).

The undersigned, duly authorized officers of the Trustee, hereby certify
to the Series 2004-2 Letter of Credit Provider as follows:

1.      [                    ] is the Trustee under the Indenture.

2.      As of the date of this certificate, the Series 2004-2 Letter of Credit
Termination Date has occurred under the Series 2004-2 Supplement.

3.      The Trustee hereby notifies the Series 2004-2 Letter of Credit Provider
that as a result of the occurrence of the Series 2004-2 Letter of Credit
Termination Date, the undersigned is returning the Series 2004-2 Letter of
Credit Provider’s Series 2004-2 Letter of Credit to the Series 2004-2 Letter of
Credit Provider.

 

 

Annex F

Page 2

IN WITNESS WHEREOF, the Trustee has executed and delivered this
certificate on this       day of                   .

	 	 	 	 	 
	 	[                                        ]

        , as the Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	  	 
	 	 	Title:  	  	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	  	 
	 	 	Title:  	  	 

 

 

	 	 	 	 	 

ANNEX G

INSTRUCTION TO TRANSFER

                         ,      

[Series 2004-2 Letter of Credit Provider]

[Address]

Attention: [                    ]

Re:     Irrevocable Letter of Credit No. [                    ]

Ladies and Gentlemen:

For value received, the undersigned beneficiary hereby irrevocably
transfers to:

 

               
                
                
                
                
                
     

(Name of Transferee]

 

               
               
               
               
               
                         

[Address]

all rights of the undersigned beneficiary to draw under the above-captioned
Series 2004-2 Letter of Credit (the “Series 2004-2 Letter of Credit”)
issued by the Series 2004-2 Letter of Credit Provider named therein in favor of
the undersigned. The transferee has succeeded the undersigned as Trustee under
that certain Amended and Restated Base Indenture, dated as of July 30, 1997,
between The Bank of New York and AESOP Funding II L.L.C. (“AFC-II”),
as supplemented by that certain Series 2004-2 Supplement thereto (the “Series 2004-2 Supplement”), dated as of February 18, 2004, between AFC-II
and The Bank of New York.

By this transfer, all rights of the undersigned beneficiary in the Series
2004-2 Letter of Credit are transferred to the transferee and the transferee
shall hereafter have the sole rights as beneficiary thereof; provided,
however, that no rights shall be deemed to have been transferred to
the transferee until such transfer complies with the requirements of the Series
2004-2 Letter of Credit pertaining to transfers.

 

 

Annex G

Page 2

The Series 2004-2 Letter of Credit is returned herewith and in accordance
therewith we ask that this transfer be effective and that the Series 2004-2
Letter of Credit Provider transfer the Series 2004-2 Letter of Credit to our
transferee or that, if so requested by the transferee, the Series 2004-2 Letter
of Credit Provider issue a new irrevocable letter of credit in favor of the
transferee with provisions consistent with the Series 2004-2 Letter of Credit.

	 	 	 	 	 
	 	[                                        ],

as the Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	  	 
	 	 	Title:  	  	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	  	 
	 	 	Title:  	  	 

 

 

	 	 	 	 	 

		EXHIBIT E

to

Series 2004-2

Supplement

[DATE]

The Bank of New York, as Trustee

c/o BNY Midwest Trust Company

2 North LaSalle Street

Chicago, IL 60602

Attn: Corporate Trust Officer

Reference is made to the Series 2004-2 Supplement, dated as of February
18, 2004 (as amended, supplemented or modified, the “Series 2004-2
Supplement”), among The Bank of New York, as trustee (the “Trustee”), The Bank of New York, as Series 2004-2 Agent, and AESOP Funding II
L.L.C., a Delaware limited liability company (the “Issuer”), to the
Base Indenture, dated as of July 30, 1997, between the Issuer and the Trustee.
Capitalized terms used herein and not defined herein have the meaning set forth
in the Series 2004-2 Supplement.

Pursuant to Section 2.3(b) of the Series 2004-2 Supplement, Avis Rent A
Car System, Inc., in its capacity as Administrator under the Series 2004-2
Supplement and the Related Documents, hereby provides notice of a Series 2004-2
Lease Payment Deficit in the amount of $[     ].

	 	 	 	 	 
	 	AVIS RENT A CAR SYSTEM, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	  	 
	 	 	Title:  	  	 

 

 

	 	 	 	 	 

		EXHIBIT
F

to

Series 2004-2

Supplement

FORM OF DEMAND NOTICE

[DATE]

[Insert Demand Note Issuer]

Ladies and Gentlemen:

Reference is made to the Series 2004-2 Supplement, dated as of February
18, 2004 (as amended, supplemented or modified, the “Series 2004-2
Supplement”), among The Bank of New York, as trustee (the “Trustee”), The Bank of New York, as Series 2004-2 Agent and AESOP Funding II
L.L.C., a Delaware limited liability company (the “Issuer”) to the
Base Indenture, dated as of July 30, 1997, between the Issuer and the Trustee.
Capitalized terms used herein and not defined herein have the meaning set forth
in the Series 2004-2 Supplement.

Pursuant to Section 2.5[(c)(i)][(d)(i)] of the Series 2004-2 Supplement,
the Trustee under the Series 2004-2 Supplement hereby makes a demand for
payment on the Series 2004-2 Demand Notes in the amount of $[                   ].

	 	 	 	 	 
	 	THE BANK OF NEW YORK, as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	  	 
	 	 	Title:

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