Document:

exhibit4221.htm

Exhibit 4.221

 

 

 

 

NOTE PURCHASE AGREEMENT

 

(RENTAL CAR ASSET BACKED VARIABLE FUNDING NOTES, SERIES 2010-2)

 

among

 

RENTAL CAR FINANCE CORP.,

 

as Seller,

 

DOLLAR THRIFTY AUTOMOTIVE GROUP, INC.,

 

as Master Servicer,

 

WELLS FARGO BANK, N.A.,

as Initial Note Purchaser,

 

and

 

THE NOTE PURCHASERS FROM TIME TO TIME PARTY HERETO

 

dated as of June 17, 2010

 

 

 

 

 

 

  

  

 

  

TABLE OF CONTENTS

 

Page

 

 

	

ARTICLE I. DEFINITIONS

	
2

 

	
  

	
Section 1.01

	
Certain Defined Terms 

	
2

	
  

	
Section 1.02

	
Other Definitional Provisions 

	
5

 

	

ARTICLE II. PURCHASES; PAYMENTS; INCREASED COSTS; FUNDING LOSSES; AND TAXES

	6

 

	
  

	
Section 2.01

	
Advances. 

	
6

	
  

	
Section 2.02

	
Advance Procedures. 

	
6

	
  

	
Section 2.03

	
Reduction or Increase of Series 2010-2 Maximum Invested Amount or Note Purchaser Funding Limits; Decreases. 

	
7

	
  

	
Section 2.04

	
Series 2010-2 Interest Amount, Fees. 

	
8

	
  

	
Section 2.05

	
[Reserved]. 

	
8

	
  

	
Section 2.06

	
Increased Capital Costs 

	
8

	
  

	
Section 2.07

	
Eurodollar Lending Unlawful 

	
9

	
  

	
Section 2.08

	
Deposits Unavailable 

	
9

	
  

	
Section 2.09

	
Increased or Reduced Costs, etc. 

	
10

	
  

	
Section 2.10

	
Funding Losses 

	
10

	
  

	
Section 2.11

	
Taxes 

	
10

	
  

	
Section 2.12

	
Indenture Carrying Charges 

	
12

 

	

ARTICLE III. CLOSING

	
12

 

	
  

	
Section 3.01

	
Purchase, Sale and Delivery 

	
12

	
  

	
Section 3.02

	
Closing 

	
12

	
  

	
Section 3.03

	
Transactions Effected at the Closing 

	
12

 

	

ARTICLE IV. CONDITIONS PRECEDENT

	
13

 

	
  

	
Section 4.01

	
Conditions Precedent to the Initial Advance 

	
13

	
  

	
Section 4.02

	
Conditions Precedent to All Advances 

	
14

 

	

ARTICLE V. REPRESENTATIONS AND WARRANTIES OF RCFC 

	
15

 

	
  

	
Section 5.01

	
Related Documents 

	
15

	
  

	
Section 5.02

	
Authority, etc. 

	
15

	
  

	
Section 5.03

	
Series 2010-2 Notes 

	
16

	
  

	
Section 5.04

	
Litigation 

	
16

	
  

	
Section 5.05

	
The Group VI Collateral 

	
16

	
  

	
Section 5.06

	
Taxes, etc. 

	
16

	
  

	
Section 5.07

	
Authorization 

	
17

	
  

	
Section 5.08

	
Financial Condition of RCFC 

	
17

	
  

	
Section 5.09

	
Securities Act 

	
17

	
  

	
Section 5.10

	
Investment Company Act 

	
17

	
  

	
Section 5.11

	
Full Disclosure 

	
17

  

i

  

	
  

	
Section 5.12

	
Amortization Events 

	
17

	
  

	
Section 5.13

	
Related Documents 

	
17

 

	

ARTICLE VI. REPRESENTATIONS AND WARRANTIES OF DTAG

	
17

 

	
  

	
Section 6.01

	
Master Lease 

	
18

	
  

	
Section 6.02

	
Authority, etc. 

	
18

	
  

	
Section 6.03

	
Litigation 

	
18

	
  

	
Section 6.04

	
Taxes, etc. 

	
19

	
  

	
Section 6.05

	
Financial Condition of DTAG 

	
19

	
  

	
Section 6.06

	
Full Disclosure 

	
19

	
  

	
Section 6.07

	
Financial Statements 

	
19

 

	

ARTICLE VII. REPRESENTATIONS, WARRANTIES AND COVENANTS WITH RESPECT TO THE NOTE PURCHASERS

	
19

 

	
  

	
Section 7.01

	
Securities Act 

	
20

 

	

ARTICLE VIII. COVENANTS OF RCFC AND DTAG

	
21

 

	
  

	
Section 8.01

	
Access to Information 

	
21

	
  

	
Section 8.02

	
Security Interests; Further Assurances 

	
22

	
  

	
Section 8.03

	
Covenants 

	
22

	
  

	
Section 8.04

	
Amendments. 

	
22

	
  

	
Section 8.05

	
Information from DTAG 

	
22

	
  

	
Section 8.06

	
Principal Office 

	
23

	
  

	
Section 8.07

	
Additional Series of Notes 

	
23

	
  

	
Section 8.08

	
Cash Audits 

	
23

	
  

	
Section 8.09

	
Margin Stock 

	
23

	
  

	
Section 8.10

	
Principal Payments 

	
23

	
  

	
Section 8.11

	
Back-up Disposition Agent Agreement 

	
23

	
  

	
Section 8.12

	
Independent Directors 

	
24

	
  

	
Section 8.13

	
Fleet Report 

	
24

	
  

	
Section 8.14

	
Monthly Vehicle Statements 

	
24

	
  

	
Section 8.15

	
Weekly Vehicle Statements 

	
24

	
  

	
Section 8.16

	
Demand Note 

	
24

	
  

	
Section 8.17

	
Title Audit 

	
24

	
  

	
Section 8.18

	
Non-Program Vehicle Report 

	
24

 

	

ARTICLE IX. ADDITIONAL COVENANTS

	
25

 

	
  

	
Section 9.01

	
Legal Conditions to Closing 

	
25

	
  

	
Section 9.02

	
Expenses 

	
25

	
  

	
Section 9.03

	
Consents, etc. 

	
25

	
  

	
Section 9.04

	
Third-Party Market Value 

	
25

 

	

ARTICLE X. INDEMNIFICATION

	
25

 

	
  

	
Section 10.01

	
Indemnification. 

	
25

	
  

	
Section 10.02

	
Procedure 

	
26

  

ii

  

	
  

	
Section 10.03

	
Defense of Claims 

	
26

	
  

	
Section 10.04

	
Costs, Expenses and Increased Costs under Agreement 

	
27

 

	

ARTICLE XI. MISCELLANEOUS

	
27

 

	
  

	
Section 11.01

	
Amendments. 

	
27

	
  

	
Section 11.02

	
Notices 

	
28

	
  

	
Section 11.03

	
No Waiver; Remedies 

	
28

	
  

	
Section 11.04

	
Binding Effect; Assignability 

	
28

	
  

	
Section 11.05

	
GOVERNING LAW 

	
29

	
  

	
Section 11.06

	
No Proceedings 

	
29

	
  

	
Section 11.07

	
Execution in Counterparts 

	
30

	
  

	
Section 11.08

	
No Recourse 

	
30

	
  

	
Section 11.09

	
Limited Recourse 

	
30

	
  

	
Section 11.10

	
Term; Survival 

	
30

	
  

	
Section 11.11

	
Tax Characterization 

	
31

	
  

	
Section 11.12

	
Severability; Series 2010-2 Note Rate Limitation. 

	
31

	
  

	
Section 11.13

	
Headings 

	
31

	
  

	
Section 11.14

	
Submission to Jurisdiction 

	
31

	
  

	
Section 11.15

	
Characterization as Related Document; Entire Agreement 

	
32

	
  

	
Section 11.16

	
Confidentiality. 

	
32

EXHIBIT A                          Form of Borrowing Request

EXHIBIT B                           Form of Reduction Request

EXHIBIT C                           Form of Assignment and Assumption Agreement

SCHEDULE I                        Addresses for Notice

SCHEDULE II                       Note Purchaser Funding Limit

SCHEDULE III                      Litigation Claims

  

iii

  

NOTE PURCHASE AGREEMENT

 

This NOTE PURCHASE AGREEMENT, dated as of June 17, 2010 (as amended, supplemented, restated or otherwise modified from time to time in accordance with the terms hereof, this “Agreement”), is made among RENTAL CAR FINANCE CORP., an Oklahoma corporation (“RCFC”), DOLLAR THRIFTY AUTOMOTIVE GROUP, INC., a Delaware corporation (“DTAG” or, in its capacity as master servicer under the Master Lease referred to below, the “Master Servicer”), WELLS FARGO BANK, N.A., a national banking association (the “Initial Note Purchaser”), and the other note purchasers from time to time party hereto (such note purchasers and the Initial Note Purchaser, collectively, the “Note Purchasers”).

 

BACKGROUND

 

1.           Contemporaneously with the execution and delivery of this Agreement, RCFC is entering into (a) the Series 2010-2 Supplement, dated as of even date herewith (as the same may be amended, supplemented, restated or otherwise modified from time to time in accordance with the terms thereof, the “Series 2010-2 Supplement”), between RCFC, as Issuer, and Deutsche Bank Trust Company Americas, a New York banking corporation, as the Trustee (in such capacity, together with its successors in trust in such capacity, the “Trustee”), to the Amended and Restated Base Indenture, dated as of February 14, 2007 (as the same may be amended, supplemented, restated or otherwise modified from time to time in accordance with the terms thereof, the “Base Indenture” and, together with the Series 2010-2 Supplement, the “Series 2010-2 Indenture”), between RCFC and the Trustee, (b) the Master Motor Vehicle Lease and Servicing Agreement (Group VI), dated as of even date herewith (as the same may be amended, supplemented, restated or otherwise modified from time to time in accordance with the terms thereof, the “Master Lease”), among RCFC, as lessor, the parties identified therein as the Lessees and Servicers, those additional Permitted Lessees from time to time becoming Lessees and Servicers thereunder, and DTAG, as Guarantor and Master Servicer, and (c) the other Related Documents (such term, as with the other capitalized terms used herein, shall have the meaning assigned thereto in Section 1.01 hereof) to which RCFC is a party.  Pursuant to the Series 2010-2 Supplement, RCFC will issue the Rental Car Asset Backed Variable Funding Notes, Series 2010-2 (the “Series 2010-2 Notes”).

 

2.           RCFC wishes to issue the Series 2010-2 Notes in favor of the Note Purchasers and to obtain the agreement of the Note Purchasers to make Advances from time to time for the purchase of some or all of the Series 2010-2 Invested Amount, all of which Advances (including the initial Advances) will constitute Increases, and all of which Advances (including the initial Advances) will be evidenced by the Series 2010-2 Notes purchased in connection herewith and will constitute purchases of some or all of the Series 2010-2 Invested Amount corresponding to the amounts of such Advances.  Subject to the terms and conditions of this Agreement, each Note Purchaser is willing to make Advances from time to time to fund purchases of some or all of the Series 2010-2 Invested Amount in an aggregate outstanding amount up to the amount set forth below its name on the signature pages to this Agreement until the commencement of the Series 2010-2 Rapid Amortization Period.  DTAG has joined in this Agreement to confirm and make certain representations, warranties and covenants for the benefit of the Note Purchasers.

 

  

  

  

NOW THEREFORE, in consideration of the premises and of the agreements herein contained, and for due and adequate consideration, which the parties hereto hereby acknowledge, the parties hereto hereby agree as follows:

 

ARTICLE I.

DEFINITIONS

 

Section 1.01                      Certain Defined Terms.  As used in this Agreement and unless the context requires a different meaning, capitalized terms used but not defined herein (including the preamble and the recitals hereto) shall have the meanings assigned to such terms in (i) the Series 2010-2 Supplement and (ii) the Definitions List attached to the Base Indenture as Schedule 1 thereto (as the same may be amended, supplemented, restated or otherwise modified from time to time in accordance with the terms of the Base Indenture, the “Definitions List”); provided, that if any capitalized term used but not defined herein has a meaning assigned to such term in the Series 2010-2 Supplement and the Definitions List, then the meaning assigned to such term in the Series 2010-2 Supplement shall apply herein.  All references to (i) any agreement shall include amendments, restatements, modifications and supplements thereto, (ii) any applicable law or specific provision thereof shall include amendments, supplements and successors thereto, and (iii) any Person shall include such Person’s successors and permitted assigns and, in the case of any Governmental Authority, any Person succeeding to its functions and capacities, in each case except as otherwise provided herein.

 

In addition, the following terms shall have the following meanings, 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:

 

“Additional Amounts” means all amounts owed by RCFC, without duplication, (i) pursuant to Sections 2.06, 2.09, 2.10 and 2.11 and Article X hereof and (ii) pursuant to the Fee Letters (other than the “Facility Fee” referred to therein).

 

“Advance” has the meaning specified in Section 2.01.

 

“Advance Date” means the date on which an Advance occurs.

 

“Applicable Indemnifying Party” has the meaning specified in Section 10.02 hereof.

 

“Applicable Pro Rata Share” means, at any time of determination with respect to any Note Purchaser, a fraction, the numerator of which is the unused (or, if applicable for purposes of Sections 2.02(d) or 2.04(b) hereof or the calculation of the applicable Facility Fee Rates under the Facility Fee Letter, used) Note Purchaser Funding Limit of such Note Purchaser at such time and the denominator of which is the sum of the unused (or, if applicable for purposes of Sections 2.02(d), 2.03(a) or 2.04(b) hereof or the calculation of the applicable Facility Fee Rates under the Facility Fee Letter, used) Note Purchaser Funding Limits for all Note Purchasers at such time.

 

  

2

  

“Assignment and Assumption Agreement” means an Assignment and Assumption Agreement substantially in the form of Exhibit C pursuant to which a permitted assignee may become a party to this Agreement.

 

“Base Indenture” has the meaning set forth in the recitals hereto.

 

“Borrowing” has the meaning specified in Section 2.01(c) hereof.

 

“Borrowing Request” means a written request substantially in the form of Exhibit A hereto.

 

“Change in Law” means (a) any law, rule or regulation or any change therein or in the interpretation or application thereof (whether or not having the force of law), in each case adopted, issued or occurring after the Series 2010-2 Closing Date or (b) any request, guideline or directive (whether or not have the force of law) from any Governmental Authority or any arbitrator or any accounting board or authority (whether or not part of government) which is responsible for the establishment or interpretation of national or international accounting principles, in each case whether foreign or domestic (each an “Official Body”) charged with the administration, interpretation or application thereof, made, issued or occurring after the Series 2010-2 Closing Date.

 

“Closing” has the meaning specified in Section 3.02 hereof.

 

“Commission” has the meaning specified in Section 7.01 hereof.

 

“Confidential Information” means information that RCFC, DTAG or the applicable Lessee furnishes to any Note Purchaser (or its agents or representatives), but does not include any such information (i) that is or becomes generally available to the public other than as a result of a disclosure by such Note Purchaser or other Person to which such Note Purchaser delivered such information, (ii) that was in the possession of such Note Purchaser prior to its being furnished to such Note Purchaser by RCFC, DTAG or the applicable Lessee or (iii) that is or becomes available to a Note Purchaser from a source other than RCFC, DTAG or the applicable Lessee; provided, that with respect to clauses (ii) and (iii) such source is not (1) bound by a confidentiality agreement with RCFC, DTAG or the applicable Lessee, as the case may be, or (2) otherwise prohibited from transmitting the information by a contractual, legal or fiduciary obligation.

 

“Controlling Noteholder” has the meaning set forth in the Series 2010-2 Supplement.

 

“DTAG” has the meaning set forth in the preamble hereto.

 

“Facility Fee” means the fees payable to the Note Purchasers as specified in the Facility Fee Letter.

 

“Facility Fee Letter” means that certain fee letter entered into on the date hereof between RCFC and the Initial Note Purchaser setting forth certain fees payable by RCFC in connection with this Agreement.

 

  

3

  

“Fee Letters” means each letter agreement entered into from time to time among RCFC, and one or more of the Note Purchasers, setting forth certain fees payable by RCFC in connection with this Agreement, including, without limitation, the Facility Fee Letter.

 

“Flooring Audit” has the meaning set forth in Section 8.01(c) hereof.

 

“Governmental Actions” means any and all consents, approvals, permits, orders, authorizations, waivers, exceptions, variances, exemptions or licenses of, or registrations, declarations or filings with, any Governmental Authority required under any Governmental Rules.

 

“Governmental Authority” means any Federal, state, local or foreign court or governmental department, commission, board, bureau, agency, authority, instrumentality or other administrative or regulatory body.

 

“Governmental Rules” means any and all laws, statutes, codes, rules, regulations, ordinances, orders, writs, decrees and injunctions of any Governmental Authority and any and all legally binding conditions, standards, prohibitions, requirements and judgments of any Governmental Authority.

 

“Indemnified Party” means any Note Purchaser or any of its officers, directors, employees, agents, representatives or Affiliates.

 

“Ineligible Assignee/Participant” means any Person, including such Person’s Affiliates or franchisees, that is directly or indirectly engaged in the vehicle rental industry; provided, that, for the avoidance of doubt, a person that provides financing to a Person engaged in the vehicle rental industry shall not be considered to be directly or indirectly engaged in the vehicle rental industry as a result of such financing for purposes of this definition.

 

“Initial Note Purchaser” has the meaning set forth in the preamble hereto.

 

“Initial Series 2010-2 Note” means the Series 2010-2 Note issued on the Series 2010-2 Closing Date in the name of Wells Fargo Bank, N.A.

 

“Margin Stock” means “margin stock” as defined in Regulation U of the Board of Governors of the Federal Reserve System, as amended from time to time.

 

“Master Lease” has the meaning set forth in the recitals hereto.

 

“Master Servicer” has the meaning set forth in the preamble hereto.

 

“Note Purchaser Funding Limit” means, with respect to each Note Purchaser, the amount identified as such in Schedule II, as reduced or increased pursuant to Section 2.03 or Section 11.01 hereof.

 

“Note Purchasers” has the meaning set forth in the preamble hereto.

 

“RCFC” has the meaning set forth in the preamble hereto.

 

  

4

  

“Series 2010-2 Base Rate Tranche” means, with respect to any Series 2010-2 Note, that portion of the Series 2010-2 Invested Amount purchased or maintained with Advances that bear interest by reference to the Base Rate.

 

“Series 2010-2 Eurodollar Tranche” means, with respect to any Series 2010-2 Note, that portion of the Series 2010-2 Invested Amount purchased or maintained with Advances that bear interest by reference to LIBOR.

 

 “Series 2010-2 Indenture” has the meaning set forth in the recitals hereto.

 

“Series 2010-2 Notes” has the meaning set forth in the recitals hereto.

 

“Series 2010-2 Supplement” has the meaning set forth in the recitals hereto.

 

“Series Documents” means the Fee Letters, the Series 2010-2 Indenture, the Master Collateral Agency Agreement, this Agreement, the Master Lease and any other Related Document.

 

“Servicer Audit Report” means a report by a firm of certified public accountants indicating that such firm has examined the most recently delivered Monthly Noteholders’ Statement and expressing such firm’s opinion that (a) the data reported, and calculations set forth, in such Monthly Noteholders’ Statement are the data required to be reported, and the calculations required to be made, in accordance with the terms of the Series 2010-2 Supplement and the other Related Documents and (b) the data reported in such Monthly Noteholders’ Statement accurately reflects the data contained in the Master Servicer’s systems and other applicable source records.

 

“Third Party Claim” has the meaning specified in Section 10.02 hereof.

 

“Trustee” has the meaning set forth in the recitals hereto.

 

Section 1.02                      Other Definitional Provisions.

 

As used herein and in any certificate or other document made or delivered pursuant hereto or thereto, accounting terms not defined in Section 1.01, and accounting terms partially defined in Section 1.01 to the extent not defined, shall have the respective meanings given to them under generally accepted accounting principles.  To the extent that the definitions of accounting terms herein are inconsistent with the meanings of such terms under generally accepted accounting principles, the definitions contained herein shall control.

 

(a)           The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement; and Section, subsection, Schedule and Exhibit references contained in this Agreement are references to Sections, subsections, the Schedules and Exhibits in or to this Agreement unless otherwise specified.

 

  

5

  

ARTICLE II.

PURCHASES; PAYMENTS; INCREASED COSTS; FUNDING LOSSES; AND TAXES

 

Section 2.01                      Advances.

 

(a)           On the terms and subject to the conditions set forth in this Agreement and the Series 2010-2 Supplement, and in reliance on the covenants, representations, warranties and agreements herein set forth, during the Series 2010-2 Revolving Period (i) RCFC from time to time may request that the Note Purchasers advance funds to purchase or refinance the purchase of some or all of the Series 2010-2 Invested Amount (each, an “Advance”); provided, that RCFC may not request more than one Advance in any calendar month (except as otherwise agreed by the Controlling Noteholder); and (ii) the Note Purchasers shall fund such Advances.

 

(b)           Unless the parties hereto otherwise agree, all Advances with respect to a Note Purchaser shall be evidenced by a Series 2010-2 Note in the name of such Note Purchaser and having a principal balance that varies from time to time to reflect the Advances made by and payments made to such Note Purchaser.

 

(c)           All Advances on any date shall be allocated (i) with respect to the initial Advances, to the Series 2010-2 Initial Invested Amount and to each of the Series 2010-2 Notes in accordance with the Applicable Pro Rata Share of each Note Purchaser; and (ii) thereafter, in accordance with the provisions in Section 4A.2 of the Series 2010-2 Supplement for allocating Increases, to the Series 2010-2 Invested Amount and to each of the Series 2010-2 Notes in accordance with the Applicable Pro Rata Share of each Note Purchaser.  Each of the Advances to be made on any date shall be made as part of a single borrowing (each such single borrowing being a “Borrowing”).  Subject to the terms of this Agreement and the Series 2010-2 Supplement, the aggregate principal amount of the Advances and corresponding Series 2010-2 Invested Amount represented by the Series 2010-2 Notes may be increased or decreased from time to time.

 

Section 2.02                      Advance Procedures.

 

(a)           Notice.  RCFC may request Advances by sending each Note Purchaser (by facsimile) a Borrowing Request at least five (5) Business Days (or such lesser number of Business Days as may be agreed by the Controlling Noteholder) prior to the proposed Advance Date (or, in the case of the initial Advances under this Agreement, on the related Advance Date).  Each Borrowing Request shall state (i) the applicable Advance Date and (ii) the amount of the requested Advance.  Each Borrowing shall be in a minimum principal amount of two million five hundred thousand dollars ($2,500,000) and integral multiples of one hundred thousand dollars ($100,000) in excess thereof; provided, that a Borrowing may be for an amount equal to the entire remaining Series 2010-2 Maximum Invested Amount even if such amount is less than the minimum principal amount or integral multiple amount, as applicable, set forth in this sentence.

 

(b)           Advances.  Subject to clause (d) below, on each Advance Date identified in a Borrowing Request the Note Purchasers shall fund an Increase in the Series 2010-2 Invested Amount in the amount specified in such Borrowing Request.  Subject to the other provisions of this Agreement, Advances shall be allocated among the Note Purchasers based on their respective Applicable Pro Rata Shares.

 

  

6

  

 

(c)           Payment of Advances.  Each Note Purchaser severally agrees, on behalf of itself, in each case pro rata based on its Applicable Pro Rata Share, to remit the applicable Advances to RCFC on the related Advance Date not later than 3:00 p.m. New York City time on such Advance Date by wire transfer of immediately available funds in U.S. Dollars to RCFC’s account no. 01419647, ABA# 021001033, maintained at Deutsche Bank Trust Company Americas (ref:  Rental Car Finance Corp. Series 2010-2) (or such other account as may from time to time be specified by RCFC in a notice to each Note Purchaser).

 

(d)           Conditions Precedent.  The initial Borrowing and each subsequent Borrowing under this Agreement shall be subject to the applicable conditions precedent set forth in Article IV.  No Note Purchaser shall be required to make a portion of any Advance to the extent that, after giving effect to such Advance, (A) the portion of the Series 2010-2 Invested Amount funded or maintained by such Note Purchaser (in each case pursuant to this Agreement) would exceed (B) the product of (I) its Applicable Pro Rata Share multiplied by (II) the Series 2010-2 Maximum Invested Amount.

 

Section 2.03                      Reduction or Increase of Series 2010-2 Maximum Invested Amount or Note Purchaser Funding Limits; Decreases.

 

(a)           RCFC may reduce in whole or in part the Series 2010-2 Maximum Invested Amount or the unused Note Purchaser Funding Limits of the Note Purchasers (but not below the then outstanding Series 2010-2 Invested Amount) by giving each Note Purchaser written notice, substantially in the form of Exhibit B hereto, at least five (5) Business Days (or such lesser number of Business Days as may be agreed by the Controlling Noteholder) before such reduction is to take place; provided, however, that any partial reduction shall be in an aggregate amount of one million dollars ($1,000,000) or any integral multiples of one hundred thousand dollars ($100,000) in excess thereof.  Any such reduction in the Series 2010-2 Maximum Invested Amount or unused Note Purchaser Funding Limits shall be permanent unless a subsequent increase in the Series 2010-2 Maximum Invested Amount or Note Purchaser Funding Limits is made in accordance with the terms hereof.  RCFC shall pay any accrued and unpaid Facility Fee with respect to the reduction amount, together with an amount equal to 1.0% of the reduction amount, on the date of any such reduction, in each case on a pro rata basis (based on each Note Purchaser’s Applicable Pro Rata Share).  Reductions of the respective Note Purchaser Funding Limits shall be made on a pro rata basis (calculated as set forth in the preceding sentence).

 

(b)           RCFC may request an increase in the Series 2010-2 Maximum Invested Amount and a pro rata increase in the Note Purchaser Funding Limits (based on the then-current Applicable Pro Rata Share of each Note Purchaser) by written notice to each Note Purchaser at least thirty (30) days before the date on which such increase is requested to become effective.  If one or more of the Note Purchasers do not consent to such requested increase, such Note Purchaser’s aggregate Applicable Pro Rata Share of the requested increase amount (the “Reoffered Amount”) shall be reoffered to the Note Purchasers that consented to such requested increase (the “Consenting Note Purchasers”).  The Reoffered Amount (or the portion thereof that

 

  

7

  

the Consenting Note Purchasers agree to add to their respective Note Purchaser Funding Limits) shall be allocated pro rata among the related Consenting Note Purchasers unless otherwise agreed by each Consenting Note Purchaser.  No such increase shall take effect with respect to a Note Purchaser unless such Note Purchaser consents in writing thereto.  Notwithstanding anything to the contrary in this Agreement, Schedules I, II and III of this Agreement may be amended, modified or changed as necessary by RCFC to give effect to any such agreed increases.

 

(c)           Whenever the Series 2010-2 Enhancement Amount is less than the Series 2010-2 Minimum Enhancement Amount or an Asset Amount Deficiency exists, then, on the Payment Date immediately following its discovery of such deficiency, RCFC shall decrease the Series 2010-2 Invested Amount to the extent (if any) required under Section 4A.3(a) of the Series 2010-2 Supplement and any corresponding payment shall be applied to the Series 2010-2 Notes as provided therein.

 

(d)           Upon at least five (5) Business Days’ (or such lesser number of Business Days as may be agreed by the Controlling Noteholder) prior irrevocable notice to each Note Purchaser and the Trustee in writing, RCFC may voluntarily reduce all or a portion of the Series 2010-2 Invested Amount in accordance with the procedures set forth in Section 4A.3(b) of the Series 2010-2 Supplement and any corresponding payment shall be applied to the Series 2010-2 Notes as provided therein.

 

Section 2.04                      Series 2010-2 Interest Amount, Fees.

 

(a)           Not later than 11:00 a.m. New York City time, on each Determination Date, each Note Purchaser holding a Series 2010-2 Note bearing interest at the Base Rate with respect to all or a portion of the Series 2010-2 Interest Period then ending (i) shall calculate the Daily Interest Amounts accrued with respect to its Series 2010-2 Note for the Base Tranche Period covering each day during such Series 2010-2 Interest Period on which its Series 2010-2 Note bore interest at the Base Rate in accordance with the provisions hereof, and (ii) shall notify the Master Servicer, the Trustee and RCFC of the same in writing (with, if requested by RCFC, a breakdown of the calculation thereof in respect of the Base Rate applicable during such Base Tranche Period).

 

(b)           RCFC agrees to pay (through instruction to the Trustee) on each Payment Date, in accordance with the terms and provisions of the Series 2010-2 Supplement, the portion of the Series 2010-2 Interest Amount due and payable in respect of the Series 2010-2 Note held by each Note Purchaser including all amounts payable by RCFC pursuant to the Fee Letter (including the Facility Fee).

 

Section 2.05                      [Reserved].

 

Section 2.06                      Increased Capital Costs.

 

(a)           If any Change in Law affects or would affect the amount of capital required or reasonably expected to be maintained by a Note Purchaser or any Person controlling a Note Purchaser and such Note Purchaser reasonably determines (in its sole and absolute discretion) that the rate of return on its or such controlling Person’s capital as a consequence of

 

  

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its commitment hereunder or the Advances made by such Note Purchaser is reduced to a level below that which such Note Purchaser or such controlling Person would have achieved but for the occurrence of any such circumstance, then, in any such case after notice from time to time by such Note Purchaser to RCFC, RCFC shall, within five (5) Business Days of its receipt thereof, pay to such Note Purchaser such additional amount or amounts sufficient to compensate such Note Purchaser or such controlling Person for such reduction in rate of return.  In determining such additional amount, such Note Purchaser may use any method of averaging and attribution that it (in its reasonable discretion) shall deem applicable so long as it applies such method to other similar transactions.

 

(b)           Any demand for payment of increased costs pursuant to Section 2.06(a) shall include a certificate setting forth in reasonable detail the computation of such increased costs and specifying the basis therefor and such other information as may be reasonably requested by RCFC.  In the absence of manifest error, such certificate shall be conclusive and binding for all purposes.  Each Note Purchaser shall use reasonable efforts to mitigate the effect upon RCFC of any such increased costs or capital requirements; provided, that it shall not be obligated to take any action that it determines would be disadvantageous to it or inconsistent with its policies.

 

Section 2.07                      Eurodollar Lending Unlawful.  If a Note Purchaser shall reasonably determine and notify RCFC (which determination shall, upon such notice, be conclusive and binding on RCFC absent manifest error) that the introduction of or any change in or in the interpretation of any law, rule or regulation after the date hereof makes it unlawful, or any Governmental Authority asserts after the date hereof that it is unlawful, for the Series 2010-2 Notes of such Note Purchaser to accrue interest at an interest rate based on LIBOR, such Series 2010-2 Notes shall accrue interest at the Base Rate commencing on the next applicable Series 2010-2 Interest Period or sooner, if required by such law or assertion, and continuing for so long as such circumstance shall exist.

 

Section 2.08                      Deposits Unavailable.  If a Note Purchaser shall have reasonably determined that:

 

(a)           Dollar deposits in the relevant amount and for the relevant Series 2010-2 Interest Period are not available to such Note Purchaser in the relevant market; or

 

(b)           such Note Purchaser has notified RCFC that, with respect to any interest rate otherwise applicable hereunder to an Advance under the Series 2010-2 Eurodollar Tranche, the Series 2010-2 Interest Period for which has not then commenced, such interest rate will not adequately reflect the cost to such Note Purchaser of making, funding, agreeing to make or fund or maintaining such Advance for such Series 2010-2 Interest Period,

 

then, upon notice from such Note Purchaser to RCFC, the obligations of such Note Purchaser to make or continue any Advance as, or to convert any Advances into, part of the Series 2010-2 Eurodollar Tranche shall forthwith be suspended until such Note Purchaser shall notify RCFC that the circumstances causing such suspension no longer exist, and such Note Purchaser shall immediately convert all such Advances of such Note Purchaser into a Series 2010-2 Base Rate Tranche at the end of the then current Series 2010-2 Interest Period with respect thereto or sooner, if required for the reason set forth in clause (a) above.

 

  

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Section 2.09                      Increased or Reduced Costs, etc.  RCFC agrees to reimburse each Note Purchaser for any increase in the cost of, or any reduction in the amount of any sum receivable by such Note Purchaser, including reductions in the rate of return on such Note Purchaser’s capital, in respect of making, continuing or maintaining (or of its obligation to make, continue or maintain) any Advances as, or of converting (or of its obligation to convert) any Advances into, part of the Series 2010-2 Eurodollar Tranche that arise in connection with any Change in Law, except for any Changes in Law with respect to increased capital costs and except for any taxes that are governed by Sections 2.06 and 2.11, respectively.  Each such demand shall be provided to RCFC in writing and shall state, in reasonable detail, the reasons therefor and the additional amount required fully to compensate the Note Purchaser for such increased cost or reduced amount or return.  Such additional amounts shall be payable by RCFC to the Note Purchaser on the next Payment Date to occur at least five (5) Business Days after RCFC’s receipt of such notice, and such notice shall, in the absence of manifest error, be conclusive and binding on RCFC.

 

Section 2.10                      Funding Losses.  If a Note Purchaser shall incur any loss or expense (including any loss or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by such Note Purchaser to make, continue or maintain any portion of the principal amount of any Advance as part of the Series 2010-2 Eurodollar Tranche or to convert any portion of the principal amount of any Advance into part of the Series 2010-2 Eurodollar Tranche) as a result of:

 

(a)           any conversion, repayment or prepayment (for any reason, including, without limitation, as a result of the acceleration of the maturity of the Series 2010-2 Eurodollar Tranche) of the principal amount of any portion of the Series 2010-2 Eurodollar Tranche on a date other than the scheduled last day of the Eurodollar Tranche Period applicable thereto;

 

(b)           any Advance not being made as an Advance under the Series 2010-2 Eurodollar Tranche after a request for such an Advance has been made in accordance with the terms contained herein (other than as a result of default or failure to perform by any Note Purchaser); or

 

(c)           any failure of RCFC to reduce the Series 2010-2 Maximum Invested Amount or the unused Note Purchaser Funding Limits after giving notice thereof pursuant to Section 2.03(a) hereof,

 

then, upon the written notice of such Note Purchaser to RCFC, RCFC shall, on the next Payment Date to occur at least five (5) Business Days after its receipt thereof, pay to such Note Purchaser such amount as will (in the reasonable determination of such Note Purchaser) reimburse such Note Purchaser for such loss or expense.  Such written notice (which shall include calculations in reasonable detail) shall, in the absence of manifest error, be conclusive and binding on RCFC.

 

Section 2.11                      Taxes.  All payments by RCFC of principal of, and interest on, the Series 2010-2 Notes and all other amounts payable hereunder (including fees) to or on behalf of any Note Purchaser shall be made free and clear of and without deduction for any present or future income, excise, documentary, property, stamp or franchise taxes and other taxes, fees, duties, withholdings or other charges of any nature whatsoever imposed by any taxing authority, but excluding in the case of any Note Purchaser (w) net income, franchise or similar taxes (including

 

  

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branch profits taxes or alternative minimum tax) imposed or levied on the Note Purchaser as a result of a connection between the Note Purchaser and the jurisdiction of the Governmental Authority imposing such tax or any political subdivision or taxing authority thereof or therein (other than any such connection arising solely from such Note Purchaser having executed, delivered or performed its obligations or received a payment under, or enforced by, this Agreement), (x) any United States backup withholding tax and (y) with respect to any Note Purchaser organized under the laws of a jurisdiction other than the United States (“Foreign Affected Person”), any withholding tax that is imposed on amounts payable to the Foreign Affected Person at the time the Foreign Affected Person becomes a party to this Agreement (or designates a new lending office), except to the extent that such Foreign Affected Person (or its assignor, if any) was already entitled, at the time of the designation of the new lending office (or assignment), to receive additional amounts from RCFC with respect to withholding tax (such non-excluded items being called “Taxes”).

 

Moreover, if any Taxes are directly asserted against any Note Purchaser with respect to any payment received by such Note Purchaser or its agent from RCFC, such Note Purchaser or its agent may pay such Taxes and RCFC will promptly upon receipt of written notice stating the amount of such Taxes pay such additional amounts (including any penalties, interest or expenses) as are necessary in order that the net amount received by such Note Purchaser after the payment of such Taxes (including any Taxes on such additional amount) shall equal the amount such Person would have received had such Taxes not been asserted.

 

If RCFC fails to pay any Taxes when due to the appropriate taxing authority or fails to remit to a Note Purchaser or its agent the required receipts or other required documentary evidence, RCFC shall indemnify such Note Purchaser and its agent for any incremental Taxes, interest or penalties that may become payable by such Note Purchaser or its agent as a result of any such failure.  For purposes of this Section 2.11, any payment made by RCFC to an agent of a Note Purchaser shall be deemed a payment made by RCFC directly to such Note Purchaser.

 

Upon the request of RCFC, each Foreign Affected Person shall execute and deliver to RCFC, prior to the initial due date of any payments to it under the Series 2010-2 Notes and hereunder and to the extent permissible under then current law, and on or about the first scheduled payment date in each calendar year thereafter, one or more (as RCFC may reasonably request) United States Internal Revenue Service Forms W-8BEN, Forms W-8ECI or Forms W-9, or successor applicable forms, or such other forms or documents (or successor forms or documents), appropriately completed, as may be applicable to establish the extent, if any, to which a payment to such Foreign Affected Person is exempt from withholding or deduction of Taxes.  Each Foreign Affected Person shall (and shall cause other persons acting on its behalf to) take any action (including entering into any agreement with the Internal Revenue Service) and comply with any information gathering and reporting requirements, in each case, that are required to obtain the maximum available exemption from any U.S. federal withholding taxes that is available to payments received by or on behalf of such Foreign Affected Person. RCFC shall not, however, be required to pay any increased amount under this Section 2.11 to any Note Purchaser that is organized under the laws of a jurisdiction other than the United States if such Note Purchaser fails to comply with the requirements set forth in this paragraph.

 

  

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If a Note Purchaser determines, in its sole discretion, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 2.11, it shall pay over such refund to RCFC (but only to the extent of indemnity payments made, or additional amounts paid under this Section 2.11 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses of such Note Purchaser and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund); provided, that RCFC, upon the request of such Note Purchaser, agrees to repay the amount paid over to RCFC (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to such Note Purchaser in the event such Note Purchaser is required to repay such refund to such Governmental Authority.  This Section 2.11 shall not be construed to require a Note Purchaser to make available its tax returns (or any other information relating to its taxes which it deems confidential) to RCFC or any other Person.

 

Section 2.12                      Indenture Carrying Charges.  Notwithstanding anything to the contrary contained herein, any amounts payable by RCFC under Sections 2.06, 2.09, 2.10, 2.11 and Article X shall constitute Carrying Charges within the meaning of the Series 2010-2 Supplement.

 

ARTICLE III.

CLOSING

 

Section 3.01                      Purchase, Sale and Delivery.  On the basis of the representations, warranties and agreements in this Agreement, but subject to the terms and conditions in this Agreement, RCFC agrees to sell to the Initial Note Purchaser, and the Initial Note Purchaser agrees to purchase from RCFC, the Initial Series 2010-2 Note.  The Series 2010-2 Note purchased by the Initial Note Purchaser will be initially registered in the name of Wells Fargo Bank, N.A.

 

Section 3.02                      Closing.  The closing (the “Closing”) of the purchase and sale of the Initial Series 2010-2 Note shall take place at the offices of Latham & Watkins LLP in New York, New York on the Series 2010-2 Closing Date, or if the conditions to closing set forth in Article IV of this Agreement shall not have been satisfied or waived by such date, as soon as practicable after such conditions shall have been satisfied or waived, or at such other time, date and place as the parties shall agree upon.

 

Section 3.03                      Transactions Effected at the Closing.  At the Closing (a) upon satisfying the conditions precedent set forth in Sections 4.01 and 4.02, the Initial Note Purchaser shall deliver to RCFC funds in an amount equal to the sum of the Advances requested, if any, pursuant to Section 2.02 (by wire transfer of immediately available funds in U.S. Dollars to the bank account designated in Section 2.02(c)); (b) in consideration of such Advances, if any, and the commitment to make Advances hereunder, RCFC shall be deemed to have sold the applicable Initial Series 2010-2 Note to such Note Purchaser and such Note Purchaser shall be deemed to have purchased the Initial Series 2010-2 Note from RCFC; and (c) RCFC shall instruct the Trustee to authenticate and deliver the Initial Series 2010-2 Note to the Initial Note Purchaser.

 

  

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ARTICLE IV.

CONDITIONS PRECEDENT

 

Section 4.01                      Conditions Precedent to the Initial Advance.  The obligation of the Initial Note Purchaser to make an initial Advance is subject to the satisfaction at the time of funding the initial Advance of the following conditions (any or all of which may be waived by the Initial Note Purchaser in its sole discretion):

 

(a)           Corporate Documents.  The Initial Note Purchaser shall have received copies of (i) the Certificate of Incorporation and By-Laws of RCFC, DTAG and DTG Operations, (ii) board of directors resolutions of RCFC, DTAG and DTG Operations with respect to the transactions contemplated by the Series Documents, and (iii) incumbency certificate of RCFC, DTAG and DTG Operations, each certified by appropriate corporate authorities.

 

(b)           Opinions of Counsel to RCFC, DTAG and DTG Operations.  Counsel to RCFC, DTAG and DTG Operations shall have delivered to the Initial Note Purchaser favorable opinions, dated the date hereof and reasonably satisfactory in form and substance to the Initial Note Purchaser and its counsel, covering due authorization, enforceability, true lease and non-consolidation, perfection and priority matters, debt for tax and such other matters as the Initial Note Purchaser shall reasonably request.

 

(c)           Opinion of Counsel to the Trustee.  Counsel to the Trustee shall have delivered to the Initial Note Purchaser a favorable opinion, dated the date hereof and reasonably satisfactory in form and substance to the Initial Note Purchaser and its counsel.

 

(d)           Uniform Commercial Code Filings.  The Initial Note Purchaser shall have received Uniform Commercial Code financing statements, in proper form for filing, as may be necessary to perfect or evidence the assignment by RCFC to the Trustee of its interests in the Group VI Collateral, the proceeds thereof and the security interests granted pursuant to the Series 2010-2 Indenture and the Master Collateral Agency Agreement.

 

(e)           Documents.  The Initial Note Purchaser shall have received a duly executed Series 2010-2 Note in its name and a duly executed counterpart of each of the Series Documents and each and every document (including, without limitation, the Facility Fee Letter) or certification delivered by any party pursuant to Section 4A.2 of the Series 2010-2 Supplement, Section 2.2 of the Base Indenture or this Agreement, and each such document shall be in full force and effect.

 

(f)           Approvals and Consents.  All Governmental Actions of all Governmental Authorities required to be obtained or made by RCFC, DTAG or DTG Operations with respect to the transactions contemplated by the Series Documents and the other documents related thereto shall have been obtained or made.

 

(g)           Fees.  The Initial Note Purchaser shall have received payment of the fees then payable to it pursuant to the Fee Letters.

 

  

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Section 4.02                      Conditions Precedent to All Advances.  Each Advance by each Note Purchaser is subject to the satisfaction at the time of such Advance of the following conditions (any or all of which may be waived with respect to a Note Purchaser in its sole discretion):

 

(a)           Series 2010-2 Indenture.  The applicable conditions precedent set forth in Section 4A.2 of the Series 2010-2 Indenture shall have been satisfied in all material respects.

 

(b)           Performance by RCFC, DTAG and DTG Operations.  All the terms, covenants, agreements and conditions of the Series Documents to which they are parties to be complied with and performed by RCFC, DTAG, DTG Operations and any other Permitted Lessee that is then a Lessee under the Master Lease at or before the time of such Advance shall have been complied with and performed in all material respects.

 

(c)           Representations and Warranties.  Each of the representations and warranties of RCFC, DTAG, DTG Operations and any other Permitted Lessee that is then a Lessee under the Master Lease made in the Series Documents to which they are parties shall be true and correct in all material respects as of the time of such Advance (except to the extent they expressly relate to an earlier or later time).

 

(d)           No Actions or Proceedings.  No action, suit, proceeding or investigation by or before any Governmental Authority shall have been instituted to restrain or prohibit the consummation of, or to invalidate, the transactions contemplated by the Series Documents and the documents related thereto in any material respect.

 

(e)           Credit Enhancement.  The sum of (i) the Series 2010-2 Letter of Credit Amount, (ii) the Series 2010-2 Cash Liquidity Amount and (iii) the Series 2010-2 Available Subordinated Amount shall be in an amount at least equal to the Series 2010-2 Minimum Enhancement Amount.

 

(f)           Minimum Series 2010-2 Letter of Credit Amount.  The Series 2010-2 Letter of Credit Amount shall at least equal the Series 2010-2 Minimum Letter of Credit Amount.

 

(g)           Opinion of Counsel to the Letter of Credit Provider. Counsel to the Series 2010-2 Letter of Credit Provider, if a Series 2010-2 Letter of Credit has been delivered on or prior to the date of such Advance, shall have delivered to the Note Purchasers favorable opinions as to the validity and enforceability of the Series 2010-2 Letter of Credit on the date the Series 2010-2 Letter of Credit was delivered.

 

(h)           Reports.  Each Note Purchaser shall have received copies of the most recent Monthly Noteholders’ Statement provided to the Trustee pursuant to Section 5.4 of the Base Indenture and the most recent Monthly Vehicle Statement provided to RCFC pursuant to Section 24.4(f) of the Master Lease.

 

(i)           Series Documents.  The Series Documents shall be in full force and effect and, at the time of such Advance, all conditions to the issuance of the Series 2010-2 Notes and any Increases under the Series 2010-2 Supplement and under Section 2.2 of the Base Indenture shall have been satisfied.

 

  

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(j)           Revolving Period; Amortization Events. The Series 2010-2 Revolving Period shall not have ended, and with respect to any Group VI Series of Notes no Amortization Event, Liquidation Event of Default, Limited Liquidation Event of Default or Potential Amortization Event, shall have occurred and be continuing or shall result from such Borrowing.

 

(k)           Note Purchaser Funding Limit.  With respect to a particular Note Purchaser, the portion of the Series 2010-2 Invested Amount attributable to such Note Purchaser shall not exceed the Note Purchaser Funding Limit of such Note Purchaser (after giving effect to such Advance);

 

(l)           Interest Rate Cap.  RCFC shall have acquired and shall be maintaining in force one or more Series 2010-2 Interest Rate Caps in accordance with the terms of the Series 2010-2 Indenture.

 

(m)           Maximum Manufacturer Percentages.  The percentage of Group VI Vehicles manufactured by each Eligible Manufacturer shall not exceed the Maximum Manufacturer Percentage of Vehicles set forth next to such Eligible Manufacturer’s name on Schedule 1 of the Series 2010-2 Supplement (as amended pursuant to the terms of the Series 2010-2 Indenture from time to time).

 

ARTICLE V.

REPRESENTATIONS AND WARRANTIES OF RCFC

 

RCFC hereby makes the following representations and warranties to the Note Purchasers, as of each Advance Date (except to the extent they expressly relate to an earlier or later time), and the Note Purchasers be deemed to have relied on such representations and warranties in making (or committing to make) each Advance on each Advance Date.

 

Section 5.01                      Related Documents.  The representations and warranties of RCFC set forth in the Base Indenture and any other Related Document are true and correct in all material respects.

 

Section 5.02                      Authority, etc.

 

(a)           RCFC has been duly organized and is validly existing and in good standing as a corporation under the laws of the State of Oklahoma, with corporate power and authority to own its properties and to transact the business in which it is now engaged, and RCFC is duly qualified to do business and is in good standing (or is exempt from such requirements) in each State of the United States where the nature of its business requires it to be so qualified unless the failure to be so qualified and in good standing would not have a material adverse effect on the interests of the Note Purchasers.

 

  

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(b)           The issuance, sale, assignment and conveyance of the Series 2010-2 Notes, the performance of RCFC’s obligations under this Agreement and the other Series Documents to which it is a party and the consummation of the transactions herein and therein contemplated will not conflict with or result in a breach of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any Lien (other than any Lien created by the Series Documents) upon any of the property or assets of RCFC pursuant to the terms of, any indenture, mortgage, deed of trust, loan agreement or other material agreement or

instrument to which it is bound or to which any of its property or assets is subject, nor will such action result in any violation of the provisions of its Certificate of Incorporation or By-Laws or any Governmental Rule applicable to RCFC.

 

(c)           No Governmental Action which has not been obtained or made by RCFC is required to be obtained or made by RCFC in connection with the execution and delivery of the Series 2010-2 Notes or any of the Series Documents to which it is a party by RCFC or the consummation by RCFC of the transactions contemplated hereby or thereby.

 

(d)           Each of the Series Documents to which it is a party has been duly authorized, executed and delivered by RCFC, and is the valid and legally binding obligation of RCFC, enforceable against RCFC in accordance with its terms, subject as to enforcement to bankruptcy, insolvency, reorganization, moratorium and other similar laws of general applicability relating to or affecting creditors’ rights and to general principles of equity.

 

Section 5.03                      Series 2010-2 Notes.  The Series 2010-2 Notes have been duly and validly authorized by RCFC, and, when executed and authenticated in accordance with the terms of the Series 2010-2 Indenture, and delivered to and paid for in accordance with this Agreement, will be duly and validly issued and outstanding and will be entitled to the benefits of the Series 2010-2 Indenture.

 

Section 5.04                      Litigation.  There is no pending or, to RCFC’s knowledge, threatened action, suit or proceeding by or against RCFC before any Governmental Authority or any arbitrator (i) with respect to the Group VI Collateral, any Series Document, the Series 2010-2 Notes or any of the transactions contemplated herein or therein, or (ii) with respect to RCFC which, in the case of any such action, suit or proceeding with respect to RCFC, if adversely determined, would have a material adverse effect on the ability of RCFC to perform its obligations hereunder or thereunder.

 

Section 5.05                      The Group VI Collateral.  The Trustee or the Master Collateral Agent, as applicable, has a first priority perfected security interest in the Group VI Collateral free and clear of all Liens, except for Liens permitted under Section 7.15 of the Base Indenture.

 

Section 5.06                      Taxes, etc.  Any taxes, fees and other charges of Governmental Authorities applicable to RCFC, except for franchise or income taxes, in connection with the execution, delivery and performance by RCFC of the Series Documents to which it is a party or otherwise applicable to RCFC in connection with the transactions contemplated herein or therein have been paid or will be paid by RCFC at or prior to the Series 2010-2 Closing Date or such Advance Date, as applicable, to the extent then due.

 

  

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Section 5.07                      Authorization. RCFC has authorized the Trustee to authenticate and deliver the Series 2010-2 Notes to each Note Purchaser.

 

Section 5.08                      Financial Condition of RCFC.  RCFC is not insolvent or the subject of any voluntary or involuntary bankruptcy proceeding.

 

Section 5.09                      Securities Act.  Assuming the accuracy of the representations of the Initial Note Purchaser set forth in Section 7.01 and compliance with the provisions of Section 7.01 and assuming there has been no general solicitation or general advertising within the meaning of the Securities Act, the offer and sale of the Series 2010-2 Notes by RCFC to the Initial Note Purchaser pursuant to and in the manner contemplated by this Agreement is a transaction exempt from the registration requirements of the Securities Act, and the Base Indenture is not required to be qualified under the Trust Indenture Act.

 

Section 5.10                      Investment Company Act. RCFC is not an “investment company” or controlled by an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

 

Section 5.11                      Full Disclosure.  No written information furnished or to be furnished by RCFC or any of its agents or representatives to the Note Purchasers for purposes of or in connection with this Agreement, including, without limitation, any information relating to the Group VI Collateral is or shall be inaccurate in any material respect, or contains or shall contain any material misstatement of fact, or omits or shall omit to state a material fact necessary to make the statements contained therein not misleading, in each case as of the date such information was or shall be stated or certified; provided, that with respect to any projections or forecasts heretofore or hereafter furnished by or on behalf of RCFC, RCFC represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time such information was prepared.

 

Section 5.12                      Amortization Events.  No Amortization Event, Liquidation Event of Default, Limited Liquidation Event of Default or Potential Amortization Event has occurred and is continuing with respect to any Group VI Series of Notes.

 

Section 5.13                      Related Documents.  RCFC has furnished to the Initial Note Purchaser true, accurate and complete copies of all other Related Documents to which it is a party as of the Series 2010-2 Closing Date, all of which Related Documents are in full force and effect as of the Series 2010-2 Closing Date and reflect all amendments or modifications as of such date.

 

ARTICLE VI.

REPRESENTATIONS AND WARRANTIES OF DTAG

 

DTAG hereby makes the following representations and warranties to the Note Purchasers as of each Advance Date (except to the extent they expressly relate to an earlier or later time), and the Note Purchasers shall be deemed to have relied on such representations and warranties in making (or committing to make) each Advance on each Advance Date.

 

 

  

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Section 6.01                      Master Lease.  Each representation and warranty of DTAG set forth in the Master Lease and each other Related Document to which it is a party (including any representations and warranties made by it as Master Servicer) is true and correct in all material respects as of the date originally made and as of the Series 2010-2 Closing Date.

 

Section 6.02                      Authority, etc.

 

(a)           Each of DTAG, DTG Operations and any other Permitted Lessee that is then a Lessee under the Master Lease has been duly organized and is validly existing and in good standing as a corporation under the laws of the jurisdiction of its incorporation, with corporate power and authority to own its properties and to transact the business in which it is now engaged, and each of DTAG, DTG Operations and any such Permitted Lessee is duly qualified to do business and is in good standing (or is exempt from such requirements) in each State of the United States where the nature of its business requires it to be so qualified unless the failure to be so qualified and in good standing would not have a material adverse effect on the interests of the Note Purchasers.

 

(b)           The performance of the obligations of each of DTAG, DTG Operations and any other Permitted Lessee that is then a Lessee under the Master Lease under the Series Documents to which any of them is a party and the consummation of the transactions herein and therein contemplated will not conflict with or result in a breach of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any Lien (other than any Lien created by the Series Documents) upon any of the property or assets of DTAG, DTG Operations or any such Permitted Lessee pursuant to the terms of, any indenture, mortgage, deed of trust, loan agreement or other material agreement or instrument to which it or any of its Affiliates is bound or to which any of its property or assets is subject, nor will such action result in any violation of the provisions of its Certificate of Incorporation or By-Laws or any Governmental Rule applicable to DTAG, DTG Operations or any such Permitted Lessee.

 

(c)           No Governmental Action which has not been obtained or made by DTAG, DTG Operations or any other Permitted Lessee that is then a Lessee under the Master Lease is required to be obtained or made by DTAG, DTG Operations or any such Permitted Lessee in connection with any of the Series Documents to which any of them is a party.

 

(d)           Each of the Series Documents to which any of them is a party has been duly authorized, executed and delivered by DTAG, DTG Operations or any other Permitted Lessee that is then a Lessee under the Master Lease, and is the valid and legally binding obligation of DTAG, DTG Operations or any such Permitted Lessee, as the case may be, enforceable against DTAG, DTG Operations or any such Permitted Lessee, as the case may be, in accordance with its terms, subject as to enforcement to bankruptcy, insolvency, reorganization, moratorium and other similar laws of general applicability relating to or affecting creditors’ rights and to general principles of equity.

 

Section 6.03                      Litigation.  Except as set forth in Schedule III hereto, there is no pending or, to the knowledge of DTAG, threatened action, suit or proceeding by or against DTAG, DTG Operations or any other Permitted Lessee that is then a Lessee under the Master Lease before any Governmental Authority or any arbitrator (i) with respect to any Series Document or any of the transactions contemplated herein or therein, or (ii) with respect to DTAG, DTG Operations or any such Permitted Lessee, which, in the case of any such action, suit or proceeding with respect to DTAG, DTG Operations or any such Permitted Lessee, if adversely determined, would have a material adverse effect on the ability of DTAG, DTG Operations or any such Permitted Lessee to perform its obligations hereunder or thereunder.

 

 

  

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Section 6.04                      Taxes, etc.  Any taxes, fees and other charges of Governmental Authorities applicable to DTAG, DTG Operations or any other Permitted Lessee that is then a Lessee under the Master Lease, except for franchise or income taxes, in connection with the execution, delivery and performance by DTAG, DTG Operations or any such Permitted Lessee of the Series Documents to which any of them is a party or otherwise applicable to DTAG, DTG Operations or any such Permitted Lessee in connection with the transactions contemplated herein or therein have been paid or will be paid by DTAG, DTG Operations or any such Permitted Lessee, as the case may be, at or prior to the Series 2010-2 Closing Date or such Advance Date, as applicable, to the extent then due.

 

Section 6.05                      Financial Condition of DTAG.  None of DTAG, DTG Operations or any other Permitted Lessee that is then a Lessee under the Master Lease is insolvent or the subject of any insolvency proceeding.

 

Section 6.06                      Full Disclosure.  No written information furnished or to be furnished by DTAG, DTG Operations or any other Permitted Lessee that is then a Lessee under the Master Lease or their respective agents or representatives to the Initial Note Purchaser for purposes of or in connection with the Series Documents is or shall be inaccurate in any material respect, or contains or shall contain any material misstatement of fact, or omits or shall omit to state a material fact necessary to make the statements contained therein not misleading, in each case as of the date such information was or shall be stated or certified; provided that with respect to any projections or forecasts heretofore or hereafter furnished by or on behalf of DTAG, DTG Operations or any such Permitted Lessee, DTAG represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time such information was prepared.

 

Section 6.07                      Financial Statements.  The audited consolidated balance sheet of Dollar Thrifty Automotive Group, Inc. and its Subsidiaries as of December 31, 2009 and the related statements of income, stockholders equity and cash flows for the year ending on such date (the “Financial Statements”), have been prepared in accordance with GAAP and present fairly in all material respects the consolidated financial position of Dollar Thrifty Automotive Group, Inc. and its Subsidiaries as of the date thereof and the consolidated results of their operations for the periods covered thereby.

 

ARTICLE VII.

REPRESENTATIONS, WARRANTIES AND COVENANTS

WITH RESPECT TO THE NOTE PURCHASERS

 

Each Note Purchaser hereby makes the following representations, warranties and covenants to RCFC and DTAG, as of the Series 2010-2 Closing Date and as of each Advance Date provided that no Note Purchaser shall be deemed to make any representation, warranty or covenant as to any Advance Date which occurred prior to the time that it became a Note Purchaser, and RCFC and DTAG shall have relied upon such representations, warranties and covenants in entering into this Agreement and in consummating the transactions contemplated by this Agreement (including the issuance of and each Increase in the Series 2010-2 Notes).

 

 

  

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Section 7.01                      Securities Act.  The Series 2010-2 Notes acquired by any Note Purchaser pursuant to this Agreement will be acquired for investment only and not with a view to any distribution, resale or other transfer thereof, except as contemplated by the next sentence.  No Note Purchaser shall sell or offer to sell or otherwise transfer its interest in any Series 2010-2 Note acquired by it, except (A) in accordance with the Series 2010-2 Indenture and this Agreement and (B) (i) to RCFC or (ii) in a transaction exempt from the registration requirements of the Securities Act and applicable state securities or “blue sky” laws, to a Person who such Note Purchaser reasonably believes is a qualified institutional buyer (within the meaning thereof in Rule 144A under the Securities Act) that is aware that the resale or other transfer is being made in reliance upon Rule 144A.  Each Note Purchaser acknowledges that it has no right to require RCFC to register under the Securities Act, or any other securities law, any Series 2010-2 Note to be acquired by any Note Purchaser pursuant to this Agreement.  Each Note Purchaser shall comply with all applicable federal and state securities laws in connection with any subsequent resale of the Series 2010-2 Notes.

 

Each Note Purchaser has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of an investment in the Series 2010-2 Notes and each Note Purchaser is able to bear the economic risk of such investment.  Each Note Purchaser has reviewed the Base Indenture and other Series Documents (including the schedules and exhibits thereto) and has had the opportunity to perform due diligence with respect thereto and to ask questions of and receive answers from RCFC and its representatives concerning RCFC, the Group VI Collateral, the Series Documents and the Series 2010-2 Notes.  Each Note Purchaser that is purchasing or has purchased, as applicable, Series 2010-2 Notes or an interest therein from RCFC is an institutional “accredited investor” within the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D promulgated by the Securities and Exchange Commission (the “Commission”) under the Securities Act.  Each Note Purchaser is a “qualified institutional buyer” within the meaning of Rule 144A promulgated by the Commission under the Securities Act.  Each Note Purchaser is purchasing the Series 2010-2 Notes for its own account for investment purposes only and not with a view to distribution, subject, nevertheless, to the understanding that the disposition of its property shall at all times be and remain within its control and be in accordance with the provisions of this Section 7.01.

 

Each Note Purchaser understands that the offering and sale of the Series 2010-2 Notes have not been and will not be registered under the Securities Act, and have not and will not be registered or qualified under any applicable “blue sky” or state securities law, and that the offering and sale of the Series 2010-2 Notes have not been reviewed by, passed on or submitted to the Commission or any other Governmental Authority.  Each Note Purchaser understands that the Series 2010-2 Notes will bear the legend set out in the form of Series 2010-2 Notes attached as Exhibit A to the Series 2010-2 Supplement and be subject to the restrictions on transfer described in such legend.

 

 

  

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ARTICLE VIII.

COVENANTS OF RCFC AND DTAG

 

Section 8.01                      Access to Information.

 

(a)           So long as any Series 2010-2 Note remains outstanding, RCFC and DTAG will, at any time from time to time during regular business hours with reasonable notice to RCFC or DTAG, as the case may be, permit the Controlling Noteholder, or its agents or representatives, to access the offices of the Master Servicer, any Lessee, DTAG or RCFC (i) to examine, inspect, audit, make copies of and abstracts from all books and records and documentation (including, without limitation, the Monthly Noteholders’ Statements) relating to the Group VI Collateral and to discuss the affairs, finances and accounts with their officers, directors, employees and independent public accountants and on such other terms as are provided to the Trustee under Section 7.8 of the Base Indenture, (ii) to visit the offices and properties of the Master Servicer, any Lessee, DTAG or RCFC for the purpose of examining such materials described in clause (i) above, and to discuss matters relating to the Group VI Collateral, or the administration and performance of the Series 2010-2 Indenture and the other Series Documents, with any of the officers or employees of the Master Servicer, any Lessee, DTAG and/or RCFC, as applicable, having knowledge of such matters, (iii) in connection with any Servicer Audit Report and the related examination as set forth in clause (b) below and (iv) in connection with any Flooring Audit and the related examination as set forth in clause (c) below.

 

(b)           Upon reasonable advance notice to DTAG and RCFC, the Controlling Noteholder may, at its sole cost and expense, select a firm of independent certified public accountants, which firm shall be reasonably acceptable to DTAG and may be the accountants of DTAG, and cause such firm to audit the servicing of the Group VI Collateral by the Master Servicer and the performance of the Group VI Collateral and to deliver to the Note Purchasers a Servicer Audit Report (in form reasonably acceptable to the Controlling Noteholder) twice per calendar year; provided, that after the occurrence and during the continuance of a Potential Amortization Event or an Amortization Event, such request for a Servicer Audit Report may be made at any time upon reasonable advance notice without limitation as to frequency and such Servicer Audit Reports shall be at RCFC’s sole cost and expense.

 

(c)           Twice per calendar year, upon reasonable advance notice to DTAG and each Lessee, the Controlling Noteholder may, at its sole cost and expense, visit the offices, properties and/or selected rental locations of each Lessee for purposes of inspecting the Group VI Vehicles at such offices, properties and/or rental locations (in each case, a “Flooring Audit”); provided, that after the occurrence and during the continuance of a Potential Amortization Event or an Amortization Event, such request for a Flooring Audit may be made at any time upon reasonable advance notice without limitation as to frequency and such Flooring Audits shall be at RCFC’s sole cost and expense.  In connection with each such Flooring Audit, DTAG shall provide the Controlling Noteholder with (i) a list of all Group VI Vehicles at such offices, properties and/or rental locations and (ii) access to each such Group VI Vehicle for purposes of a physical inspection (or, if at the time of such Flooring Audit, any Group VI Vehicle is either rented by a customer or undergoing maintenance, access to the related rental agreement or maintenance agreement, respectively).

 

 

  

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Section 8.02                      Security Interests; Further Assurances.  RCFC and DTAG shall take all action necessary to maintain the Trustee’s first priority perfected security interest for the benefit of the Group VI Noteholders in the Group VI Collateral granted pursuant to Section 3.1 of the Base Indenture, Section 3.1 of the Series 2010-2 Supplement and Section 2.1 of the Master Collateral Agency Agreement.  RCFC and DTAG agree to take any and all acts and to execute any and all further instruments necessary or reasonably requested by the Controlling Noteholder, the Trustee or the Master Collateral Agent to more fully effect the purposes of this Agreement.

 

Section 8.03                      Covenants.  RCFC and DTAG shall duly observe and perform, and cause the Lessees to duly observe and perform, each of their respective covenants set forth in the Series Documents to which they are parties.

Section 8.04                      Amendments.

 

(a)           Neither RCFC nor DTAG shall make, or permit the Lessees to make, except as contemplated by Section 3.2(a) of the Base Indenture with respect to the Master Lease or clauses (c) through (h) of Section 11.1 of the Base Indenture, any amendment, modification or change to, or provide any waiver under, any Series Document to which they are party (other than this Agreement) with respect to the Series 2010-2 Notes or the Group VI Collateral or otherwise relating to or affecting the rights of the Series 2010-2 Noteholders without the prior written consent of the Series 2010-2 Required Noteholders, which consent shall not be unreasonably withheld, conditioned or delayed; it being agreed, for the avoidance of doubt, that this Section 8.04(a) shall not apply to the issuance as contemplated in Section 11.1(a) of the Base Indenture of any new Series of Notes that is not a Group VI Series of Notes.

 

(b)           RCFC shall not amend any of its organizational documents, including its Certificate of Incorporation, without the prior written consent of the Series 2010-2 Required Noteholders and otherwise in accordance with Section 7.22 of the Base Indenture.

 

Section 8.05                      Information from DTAG.  So long as the Series 2010-2 Notes remain outstanding, DTAG shall furnish the following to the Controlling Noteholder:

 

(a)           a copy of each certificate, opinion, report, statement, notice or other communication (other than investment instructions) relating to the Series 2010-2 Notes or the Group VI Collateral or otherwise relating to or affecting the rights of the Series 2010-2 Noteholders which the Series Documents require to be furnished by or on behalf of DTAG or RCFC to the Trustee or the Rating Agencies under any Series Document, concurrently therewith, and promptly after receipt thereof, a copy of each notice, demand or other communication relating to the Series 2010-2 Notes or the Group VI Collateral or otherwise relating to or affecting the rights of the Series 2010-2 Noteholders received by or on behalf of DTAG or RCFC under any Series Document;

 

(b)           such other information (including financial information), documents, records or reports respecting the Group VI Collateral, RCFC or the Master Servicer as the Controlling Noteholder may from time to time reasonably request; and

 

 

  

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(c)           promptly upon becoming aware of any Potential Amortization Event, Amortization Event, Potential Lease Event of Default or Lease Event of Default, written notice thereof.

 

Section 8.06                      Principal Office.  RCFC shall not, nor shall RCFC or DTAG permit DTG Operations or any other Permitted Lessee that is then a Lessee under the Master Lease to, change the location of their respective principal office without 60 days prior notice to the Controlling Noteholder and otherwise in compliance with the Series Documents to which they are party.

 

Section 8.07                      Additional Series of Notes.  RCFC shall not issue after the Series 2010-2 Closing Date any new Series of Notes entitled to share in the Group VI Collateral unless (a) the Note Purchasers have given their prior written consent to such issuance or (b) (i) the proceeds of such issuance are to be used to pay in full the Series 2010-2 Invested Amount and all other amounts due and payable under the Series Documents to the Note Purchasers shall be paid concurrently therewith and (ii) the obligations of the Note Purchasers to make Advances under the Series Documents is terminated on or prior to the date of such issuance.

 

Section 8.08                      Cash Audits.  At any time and from time to time, following reasonable prior notice from the Controlling Noteholder, RCFC and DTAG shall cooperate with the Controlling Noteholder or its agents or representatives (including any independent public accounting firm or other third party auditors) in conducting a review of any 10 Business Days selected by the Controlling Noteholder (or its representatives or agents) and at the Controlling Noteholder’s sole cost and expense, confirming (i) the information contained in the Daily Report for each such day and (ii) that the Collections described in each such Daily Report for each such day were applied correctly in accordance with Article 4 of the Series 2010-2 Supplement (a “Cash Audit”); provided, that such Cash Audits shall be at RCFC’s sole cost and expense after the occurrence and during the continuance of an Amortization Event or Potential Amortization Event with respect to the Series 2010-2 Notes.

 

Section 8.09                      Margin Stock.  RCFC and DTAG shall not permit (a) any part of the proceeds of any Borrowing to be (x) used to purchase or carry any Margin Stock or (y) loaned to others for the purpose of purchasing or carrying any Margin Stock or (b) any amounts owed with respect to the Series 2010-2 Notes to be secured, directly or indirectly, by any Margin Stock.

 

Section 8.10                      Principal Payments.  On and after the Series 2010-2 Expected Final Payment Date, RCFC shall instruct the Trustee to use all amounts allocated to and available for distribution from each Excess Funding Account in respect of each Group VI Series of Notes to decrease, pro rata, the Series 2010-2 Invested Amount and the principal amount of any other Group VI Series of Notes that is then required to be paid.

 

Section 8.11                      Back-up Disposition Agent Agreement.  Neither RCFC nor DTAG shall amend the Back-Up Disposition Agent Agreement or the Back-up Servicing Agreement in a manner that materially adversely affects the Series 2010-2 Noteholders, as determined by the Series 2010-2 Required Noteholders in their sole discretion, without the prior written consent of the Series 2010-2 Required Noteholders.

 

 

  

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Section 8.12                      Independent Directors.  RCFC shall not (a) remove any independent director of RCFC, without (i) delivering an Officers’ Certificate to the Trustee certifying that the replacement independent director of RCFC satisfies the requirements of its Certificate of Incorporation or Bylaws and (ii) obtaining the prior written consent of the Series 2010-2 Required Noteholders (not to be unreasonably withheld, conditioned or delayed), in each case, no later than 10 Business Days prior to the effectiveness of such removal, or (b) replace any independent director of RCFC unless (i) it has obtained the prior written consent of the Series 2010-2 Required Noteholders (not to be unreasonably withheld, conditioned or delayed) or (ii) such replacement independent director is an officer, director or employee of an entity that provides, in the ordinary course of its business, advisory, management or placement services to issuers of securitization or structured finance instruments, agreements or securities and otherwise meets the requirements of its organizational documents.

 

Section 8.13                      Fleet Report.  RCFC shall, within 45 days following the end of each calendar quarter, provide or cause to be provided to the Trustee and the Note Purchasers a report containing the information set forth in, and substantially in the form of, Exhibit C to the Master Collateral Agency Agreement (a “Fleet Report”).

 

Section 8.14                      Monthly Vehicle Statements.  On each Reporting Date, promptly after the receipt thereof, RCFC shall furnish or cause to be furnished to the Note Purchasers the “Monthly Vehicle Statement” provided pursuant to Section 24.4(f) of the Master Lease.

 

Section 8.15                      Weekly Vehicle Statements.  The Master Servicer, for so long as a Liquidation Event of Default or a Limited Liquidation Event of Default for any Series of Notes is continuing, upon request by the Controlling Noteholder, shall, within 2 days following the end of each calendar week, furnish or cause to be furnished to the Note Purchasers a report (which may be on a diskette or other electronic medium) that contains the same data set forth in a “Monthly Vehicle Statement” provided pursuant to Section 24.4(f) of the Master Lease, but determined on a weekly basis.

 

Section 8.16                      Demand Note.  RCFC shall not, without the prior written consent of the Series 2010-2 Required Noteholders, reduce the principal amount of the Demand Note below the initial principal amount thereof.

 

Section 8.17                      Title Audit.  The Controlling Noteholder may, or may cause a nationally recognized firm of independent accountants to, at the Controlling Noteholder’s sole cost and expense, from time to time and with reasonable advance notice to the Master Servicer, perform certain agreed upon procedures on a statistical sample of the Certificates of Title of the Group VI Vehicles designed to provide, to a certain specified confidence level, confirmation that such Vehicles are titled in the name of Rental Car Finance Corp. and the Certificates of Title indicate a first lien in the name of the Master Collateral Agent.

 

Section 8.18                      Non-Program Vehicle Report.  Concurrently with the furnishing thereof to the recipients specified in the Master Lease, the Master Servicer shall furnish or cause to be furnished to the Controlling Noteholder the “Non-Program Vehicle Report” provided pursuant to Section 24.4(h) of the Master Lease.

 

 

  

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ARTICLE IX.

ADDITIONAL COVENANTS

 

Section 9.01                      Legal Conditions to Closing.  The parties hereto shall take all reasonable action necessary to obtain (and shall cooperate with one another in obtaining) any consent, authorization, permit, license, franchise, order or approval of, or any exemption by, any Governmental Authority or any other Person, required to be obtained or made by it in connection with the closing of the transactions contemplated by this Agreement.

 

Section 9.02                      Expenses.  All costs and expenses (including reasonable fees and expenses of counsel to the Initial Note Purchaser) incurred in connection with the preparation, execution and delivery of this Agreement and the other Series Documents up to $150,000 (except such cap shall not apply to such fees and expenses of counsel to the Initial Note Purchaser) shall (as between RCFC and the Initial Note Purchaser) be paid by RCFC.

Section 9.03                      Consents, etc.  Each Note Purchaser agrees not to unreasonably withhold, condition or delay its consent to any amendment or other matter requiring consent of the Series 2010-2 Noteholders under a provision of any Series Document to the extent that such provision specifies that such consent is not to be unreasonably withheld, conditioned or delayed.

 

Section 9.04                      Third-Party Market Value.  The Controlling Noteholder agrees to comply with Section 8.7 of the Series 2010-2 Supplement.

 

ARTICLE X.

INDEMNIFICATION

 

Section 10.01                                Indemnification.

 

(a)           In consideration of the execution and delivery of this Agreement (or an Assignment and Assumption Agreement in connection herewith) by the Note Purchasers, RCFC hereby indemnifies and holds the Indemnified Parties harmless from and against any and all actions, causes of action, suits, losses, costs, liabilities and damages, and reasonable expenses incurred in connection therewith (irrespective of whether any such Indemnified Party is a party to the action for which indemnification hereunder is sought and including, without limitation, any liability in connection with the offering and sale of the Series 2010-2 Notes), including reasonable attorneys’ fees and disbursements (collectively, the “Indemnified Liabilities”), incurred by the Indemnified Parties or any of them (whether in prosecuting or defending against such actions, suits or claims) as a result of, or arising out of, or relating to:

 

(i)           any transaction financed or to be financed in whole or in part, directly or indirectly, with the proceeds of any Advance; or

 

(ii)           the entering into and performance of this Agreement and any other Series Document by any of the Indemnified Parties; or

 

(iii)           any breach by RCFC of any representation warranty or covenant in this Agreement, any other Series Document to which it is a party or in any certificate or other written material delivered pursuant hereto or thereto; in each case as such Indemnified Liabilities are incurred, payable promptly upon request.

 

 

  

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(b)           In consideration of the execution and delivery of this Agreement (or an Assignment and Assumption Agreement in connection herewith) by the Note Purchasers, DTAG hereby indemnifies and holds the Indemnified Parties harmless from and against any and all Indemnified Liabilities incurred by the Indemnified Parties or any of them (whether in prosecuting or defending against such actions, suits or claims) as a result of, or arising out of, or relating to any breach of any representation, warranty or covenant of DTAG in this Agreement, any Series Document to which it is a party or in any certificate or other written material delivered pursuant hereto, as such Indemnified Liabilities are incurred, payable promptly upon request.

 

(c)           Notwithstanding the indemnities set forth in Section 10.01(a) and (b) above, in no event shall any Indemnified Party be entitled to any indemnity or claim with respect to actions, causes of action, suits, costs, expenses, liabilities, damages or losses (i) resulting from (A) the disposition price or market value of Group VI Vehicles, (B) performance of the Group VI Collateral securing the Series 2010-2 Notes or the value, performance, market fluctuations or similar market or investment risks associated with ownership of the Series 2010-2 Notes (including, without limitation, those associated with the pledge, transfer or assignment thereof), (ii) which are the subject of Sections 2.06, 2.07, 2.09, 2.10 or 2.11 hereof, or (ii) arising from such Indemnified Party’s own gross negligence, willful misconduct or such Indemnified Party’s breach of Article VII hereof or any transfer restrictions set forth in the Series 2010-2 Notes.  If and to the extent that the foregoing undertaking may be unenforceable for any reason, each of DTAG and RCFC hereby agrees to make the maximum contribution owed by it under this Section 10.01 to the payment and satisfaction of each of the Indemnified Liabilities owed by it under this Section 10.01 and which is permissible under applicable law.

 

Section 10.02                                Procedure.  In order for an Indemnified Party to be entitled to any indemnification provided for under this Agreement in respect of, arising out of, or involving a claim made by any Person against the Indemnified Party (a “Third Party Claim”), such Indemnified Party must notify DTAG or RCFC, as applicable (the “Applicable Indemnifying Party”), in writing of the Third Party Claim within a reasonable time after receipt by such Indemnified Party of written notice of the Third Party Claim unless the Applicable Indemnifying Party shall have previously obtained actual knowledge thereof.  Thereafter, the Indemnified Party shall deliver to the Applicable Indemnifying Party, within a reasonable time after the Indemnified Party’s receipt thereof, copies of all notices and documents (including court papers) received by the Indemnified Party relating to the Third Party Claim.

 

Section 10.03                                Defense of Claims.  If a Third Party Claim is made against an Indemnified Party, (a) the Applicable Indemnifying Party will be entitled to participate in the defense thereof and, (b) if it so chooses, to assume the defense thereof with counsel selected by the Applicable Indemnifying Party, provided that in connection with such assumption such counsel is not reasonably objected to by the Indemnified Party.  Should the Applicable Indemnifying Party so elect to assume the defense of a Third Party Claim, the Applicable Indemnifying Party will not be liable to the Indemnified Party for any legal expenses subsequently incurred by the Indemnified Party in connection with the defense thereof.  If the Applicable Indemnifying Party elects to assume the defense of a Third Party Claim, the Indemnified Party shall (i) cooperate in all reasonable respects with the Applicable Indemnifying Party in connection with such defense and (ii) not admit any liability with respect to, or settle, compromise or discharge, such Third Party Claim without the Applicable Indemnifying Party’s prior written consent, as the case may be.  If the Applicable Indemnifying Party shall assume the defense of any Third Party Claim, the Indemnified Party shall be entitled to participate in (but not control) such defense with its own counsel at its own expense.  If the Applicable Indemnifying Party does not assume the defense of any such Third Party Claim, the Indemnified Party may defend the same in such manner as it may deem appropriate, including settling such claim or litigation with the prior written consent of the Applicable Indemnifying Party and upon any such settlement consented to by the Applicable Indemnifying Party, the Applicable Indemnifying Party will promptly reimburse the Indemnified Party therefor upon written request.  Notwithstanding anything contained in this Agreement to the contrary, no Applicable Indemnifying Party shall be entitled to assume the defense of any part of a Third Party Claim that seeks a temporary restraining order, injunction or other equitable relief or relief for other than money damages against the Indemnified Party.

 

  

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Section 10.04                                Costs, Expenses and Increased Costs under Agreement.

 

(a)           RCFC shall be obligated to pay on demand to each Note Purchaser (i) all reasonable costs and expenses in connection with the preparation, execution and delivery of any requested amendments, waivers or consents relating to this Agreement or the other Series Documents, including, without limitation, the reasonable fees and out-of-pocket expenses of counsel for the Note Purchasers, with respect thereto and with respect to advising the Note Purchasers as to their respective rights and remedies under this Agreement and the other documents delivered hereunder or in connection herewith and (ii) all costs and expenses, if any, in connection with the enforcement of this Agreement and the other documents delivered hereunder or in connection herewith.

 

(b)           Subject to Section 11.09, RCFC shall be remain obligated to pay to the applicable Note Purchasers in accordance with the Series 2010-2 Supplement, the amount of any Additional Amounts payable to them to the extent not paid when otherwise required on a Payment Date pursuant to Section 4.7 of the Series 2010-2 Supplement.

 

ARTICLE XI.

MISCELLANEOUS

 

Section 11.01                                Amendments.  No amendment to or waiver of any provision of this Agreement shall be effective unless the same shall be in writing and signed by the Master Servicer, RCFC, and the Series 2010-2 Required Noteholders; provided, however, that any such amendment or waiver of any provision of this Agreement shall be subject to the consent of each Note Purchaser to the extent that the approval of such amendment or waiver requires the consent of each affected Noteholder under Section 11.2 of the Base Indenture.  Any such amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.  RCFC shall provide Standard & Poor’s Ratings Services with written notice of any amendment to this Agreement.

 

 

  

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Section 11.02                                Notices.

 

(a)           Any instruction, notice or communication provided for hereunder is duly given if in writing and delivered in person or mailed by first-class mail (registered or certified, return receipt requested), telecopier or overnight air courier guaranteeing next day delivery, to the other’s address set forth in Schedule I hereto or at such other address as shall be designated by such party in a written notice to the other parties hereto.  All notices to the Trustee shall be made in accordance with Section 12.1 of the Base Indenture.

 

(b)           Any notice (i) given in person shall be deemed delivered on the date of delivery of such notice, (ii) given by first class mail shall be deemed given five (5) days after the date that such notice is mailed, (iii) delivered by telecopier shall be deemed given on the date of delivery of such notice, and (iv) delivered by overnight air courier shall be deemed delivered one Business Day after the date that such notice is delivered to such overnight courier.  In the case by reason of the suspension of regular mail service or by reason of any other cause it shall be impracticable to give such notice by mail, then such notification as shall be made that is satisfactory to the Series 2010-2 Required Noteholders shall constitute a sufficient notification for every purpose hereunder.

 

(c)           Where this Agreement provides for notice in any manner, such notice may be waived in writing by any Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice.

 

Section 11.03                                No Waiver; Remedies.  No failure on the part of any party hereto to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right.  The remedies herein provided are cumulative and not exclusive of any remedies provided by law.

 

Section 11.04                                Binding Effect; Assignability.  Subject to Sections 11.04(b) and 11.04(c), this Agreement shall be binding upon and inure to the benefit of the parties to this Agreement and their respective successors and assigns (including any subsequent Holders of the Series 2010-2 Notes); provided, however, that neither RCFC nor DTAG shall have the right to assign its rights hereunder or any interest herein (voluntarily, by operation of law or otherwise) without the prior written consent of the Note Purchasers; provided, that nothing herein shall prevent RCFC from assigning its rights to the Trustee under the Base Indenture and the Series 2010-2 Supplement.  Nothing expressed herein is intended or shall be construed to give any Person other than the Persons referred to in the preceding sentence any legal or equitable right, remedy or claim under or in respect of this Agreement.

 

(b)           Any Note Purchaser may assign all or a portion of the Series 2010-2 Notes held by it, together with its related rights and obligations under this Agreement and any other Related Documents to any banking institution with (i) a short-term unsecured indebtedness rating from Moody’s of not lower than “P-1” and from Standard & Poor’s of not lower than “A-1” and (ii) a long-term senior unsecured indebtedness rating from Moody’s of at least “A-2” and from Standard & Poor’s of at least “A”; provided, that a Note Purchaser shall not be permitted to assign any of its rights or obligations under this Agreement and the related Series 2010-2 Notes to any Ineligible Assignee/Participant; provided, further, that in no event shall there be more than ten Note Purchasers at any time.  The parties to each such permitted assignment shall execute and promptly deliver an Assignment and Assumption Agreement to RCFC.  From and after the effective date of such Assignment and Assumption Agreement, the assigning Note Purchaser shall be relieved of its rights and obligations hereunder to the extent so assigned.  Notwithstanding anything to the contrary contained herein, to the extent that any such assignment would, at the time of such assignment, result in increased costs under Sections 2.06, 2.09 or 2.11 from those being charged by the respective assigning Note Purchaser prior to such assignment, then RCFC shall not be obligated to pay such increased costs (although RCFC, in accordance with and pursuant to other provisions of this Agreement shall be obligated to pay any other increased costs of the type covered by any such Section resulting from changes after the date of the respective assignment).

 

 

  

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(c)           A Note Purchaser may, in the ordinary course of its business and in accordance with applicable law, at any time sell to one or more Persons (each, a “Participant”) participating interests in all or a portion of its rights and obligations under this Agreement and the Series 2010-2 Notes pursuant to documentation in form and substance satisfactory to such Note Purchaser and the related Participant; provided, that no Note Purchaser shall be permitted to sell any participating interest in all or any portion of its rights or obligations under this Agreement and the related Series 2010-2 Notes to any Ineligible Assignee/Participant.  Notwithstanding any such sale by a Note Purchaser of a participating interest to a Participant, (i)(x) such Note Purchaser’s rights and obligations under this Agreement shall remain unchanged, (y) such Note Purchaser shall remain solely responsible for the performance thereof, and (z) RCFC and the other parties hereto shall continue to deal solely and directly with such Note Purchaser in connection with this Agreement and (ii) no Note Purchaser shall sell any participating interest under which the Participant shall have rights to approve any amendment to, or any consent or waiver with respect to, this Agreement, the Base Indenture, the Series 2010-2 Supplement or any Related Document, except to the extent that the approval of such amendment, consent or waiver requires the consent of each affected Noteholder under Section 11.2 of the Base Indenture.  RCFC also agrees that each Participant shall be entitled to the benefits of Sections 2.06, 2.09, 2.10 and 2.11 hereof; provided, however, that all amounts payable by RCFC to any such Participant shall be limited to the amounts which would have been payable to the Note Purchaser selling such participating interest had such interest not been sold and, with respect to amounts due pursuant to Section 2.11, only to the extent such Participant shall have complied with the provisions of Section 2.11 as if such Participant were a Note Purchaser.

 

Section 11.05                                GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

 

Section 11.06                                No Proceedings.  Each of the parties hereto hereby covenants and agrees that, prior to the date which is one year and one day after the payment in full of any Series 2010-2 Notes issued by RCFC pursuant to the Base Indenture, it will not institute against, or join with any other Person in instituting against, RCFC, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any Federal or state bankruptcy or similar law, all as more particularly set forth in Section 12.15 of the Base Indenture and subject to any retained rights set forth therein; provided, however, that nothing in this Section 11.06 shall constitute a waiver of any right to indemnification, reimbursement or other payment from RCFC pursuant to this Agreement or the Series 2010-2 Indenture.  If any party hereto takes action in violation of this Section 11.06, RCFC agrees that it shall file an answer with the bankruptcy court or otherwise properly contest the filing of such a petition by any such Person against RCFC or the commencement of such action and raise the defense that such Person 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 11.06 shall survive the termination of this Agreement.  Nothing contained herein shall preclude participation by any party hereto in assertion or defense of its claims in any such proceeding involving RCFC.

 

  

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Section 11.07                                Execution in Counterparts.  This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same agreement.

Section 11.08                                No Recourse.  The obligations of any Note Purchaser under this Agreement, or any other agreement, instrument, document or certificate executed and delivered by or issued by such Note Purchaser or any officer thereof are solely the corporate, partnership or limited liability company obligations of such Note Purchaser.  No recourse shall be had for payment of any fee or other obligation or claim arising out of or relating to this Agreement or any other agreement, instrument, document or certificate executed and delivered or issued by such Note Purchaser or any officer thereof in connection therewith, against any stockholder, limited partner, member, employee, officer, director or incorporator of such Note Purchaser.

 

Section 11.09                                Limited Recourse.  The obligations of RCFC under this Agreement and the other Series Documents to which it is a party are solely the corporate obligations of RCFC.  No recourse shall be had for the payment of any fee or other obligation or claim arising out of or relating to this Agreement or the other Series Documents or any other agreement, instrument, document or certificate executed and delivered or issued by RCFC or by any stockholder, officer, director or employee thereof in connection herewith or therewith, against any stockholder, employee, officer or director of RCFC.  Notwithstanding anything herein to the contrary, each of the parties hereto agrees that amounts owed to them by RCFC under the Series Documents to which RCFC is a party shall be payable solely from amounts that become available for payment pursuant to the Series 2010-2 Indenture.

 

Without limiting the generality of the foregoing, and notwithstanding any other provision of this Agreement, (i) RCFC shall have no liability for any obligation of DTAG or for any claim against DTAG, and (ii) DTAG shall have no liability for any obligation of RCFC or for any claim against RCFC.

 

Section 11.10                                Term; Survival.

 

(a)           This Agreement shall create and constitute the continuing obligation of the parties hereto in accordance with its terms and shall remain in full force and effect until such time as all amounts payable with respect to the Series 2010-2 Notes shall have been paid in full, at which time this Agreement shall terminate except as otherwise provided in Section 11.10(b).

 

 

  

30

  

 

(b)           All covenants and indemnification contained in Article X and Sections 11.06, 11.08 and 11.09 of this Agreement shall survive the sale, transfer or repayment of the Series 2010-2 Notes.

 

Section 11.11                                Tax Characterization.  Each party to this Agreement (a) acknowledges that it is the intent of the parties to this Agreement that, for accounting purposes and for all federal, state and local income and franchise tax purposes, the Series 2010-2 Notes will be treated as evidence of indebtedness issued by RCFC, (b) agrees to treat the Series 2010-2 Notes for all such purposes as indebtedness and (c) agrees that the provisions of the Related Documents shall be construed to further these intentions.

Section 11.12                                Severability; Series 2010-2 Note Rate Limitation.

 

(a)           If any one or more of the covenants, agreements, provisions or terms of this Agreement shall for any reason whatsoever be held invalid, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants, agreements, provisions or terms of this Agreement and shall in no way affect the validity or enforceability of the other provisions of this Agreement or of the Series 2010-2 Notes.

 

(b)           Notwithstanding anything in this Agreement, the other Series Documents or any Series 2010-2 Note to the contrary, if at any time the Series 2010-2 Note Rate with respect to a Series 2010-2 Note, together with all fees, charges and other amounts which are treated as interest on such Series 2010-2 Note, under applicable law (collectively the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) that may be contracted for, charged, taken, received or reserved by such Series 2010-2 Noteholder in accordance with the terms of this Agreement, the other Series Documents or such Series 2010-2 Note, then the Series 2010-2 Note Rate, together with all Charges payable in respect of such Series 2010-2 Note, shall be limited to the Maximum Rate and, to the extent lawful, the Series 2010-2 Note Rate and Charges that would have been payable in respect of such Series 2010-2 Note, but were not payable as a result of the operation of this Section (or the proviso to the definition of the Series 2010-2 Note Rate in the Series 2010-2 Supplement), shall be cumulated and such cumulated amounts shall be payable to the applicable Series 2010-2 Noteholder in later periods to the extent such payment would not cause the then current Series 2010-2 Note Rate and then current Charges together with such cumulated amounts to exceed the Maximum Rate until such cumulated amount shall have been received by such Series 2010-2 Noteholder.

 

Section 11.13                                Headings.  The headings herein are for purposes of reference only and shall not otherwise affect the meaning or interpretation of any provision hereof.

 

Section 11.14                                Submission to Jurisdiction.  Each of the parties hereto hereby irrevocably and unconditionally:

 

(a)           submits for itself and its property in any legal action or proceeding relating to this Agreement, any other Series Document, any Series 2010-2 Note or the other documents executed and delivered in connection herewith or for recognition and enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the courts of the State of New York, the courts of the United States of America for the Southern District of New York, and appellate courts from any thereof;

 

  

31

  

 

(b)           consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same;

 

(c)           agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to such Person at its address determined in accordance with Section 11.02; and

(d)           agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction.

 

Section 11.15                                Characterization as Related Document; Entire Agreement.  This Agreement shall be deemed to be a Related Document for all purposes of the Series 2010-2 Indenture and the other Related Documents.  This Agreement, together with the Series 2010-2 Indenture, the agreements delivered pursuant to Article IV and the other Related Documents, including the exhibits and schedules thereto, contains a final and complete integration of all prior expressions by the parties hereto with respect to the subject matter hereof and shall constitute the entire agreement among the parties hereto with respect to the subject matter hereof, superseding all previous oral statements and other writings with respect thereto.

 

Section 11.16                                Confidentiality.

 

(a)           Each Note Purchaser hereby agrees that neither it (nor its agents or representatives) shall disclose the terms and conditions of the Series Documents or any Confidential Information to any Person without the prior written consent of the DTAG, RCFC and the applicable Lessee.  Notwithstanding anything herein to the contrary, the foregoing shall not be construed to prohibit any Note Purchaser from (i) disclosing any and all information that is or becomes publicly known through no fault of a Note Purchaser (including a breach of this Section 11.16), (ii) disclosure of any and all information (which makes reference to RCFC or this transaction) obtained by any Note Purchaser from sources (other than RCFC) that to the knowledge of such Note Purchaser are not subject to a confidentiality obligation with RCFC, DTAG or the applicable Lessee, as the case may be, (iii) disclosing any and all information (A) if required to do so by any applicable statute, law, rule or regulation or judicial process, (B) to any government agency or regulatory body having or claiming authority to regulate or oversee any aspects of a Note Purchaser’s business or that of its Affiliates, (C) pursuant to any subpoena (or similar legal process), civil investigative demand or similar demand or request of any court, administrative order or decree, governmental or regulatory authority or self-regulatory authority organization, arbitrator or arbitration to which any Note Purchaser or an Affiliate or an officer, director or employee thereof is a party, (D) to any other Note Purchaser, (E) to actual or prospective assignees and participants meeting the requirements of Sections 11.04(b) or 11.04(c), as applicable, who agree to be bound by the provisions of this Section 11.16(a), (F) to any Affiliate of such Note Purchaser and its officers, directors, employees, agents and advisors (including, without limitation, legal counsel and accountants) having a need to know the same, provided that such Note Purchaser advises such recipient of the confidential nature of the information being disclosed, (G) to any independent or internal auditor, agent, employee, attorney or professional advisor of such Note Purchaser having a need to know the same, provided that such Note Purchaser advises such recipient of the confidential nature of the information being disclosed, (H) in the course of litigation with DTAG, RCFC or the applicable Lessee or (I) to any Person to the extent such Note Purchaser reasonably determines such disclosure is necessary or appropriate in connection with the enforcement or for the defense of the rights and remedies under the Series 2010-2 Notes, the Series 2010-2 Indenture or any other Related Document or (iv) any other disclosure authorized by RCFC in advance in writing.

 

 

  

32

  

(b)           Neither RCFC nor DTAG shall, nor shall RCFC or DTAG permit its Affiliates to, disclose, (x) the terms and conditions of this Agreement to anyone not a party hereto (other than a party or prospective party to a Permitted Change in Control Transaction) or (y) any other non-public information with respect to the Note Purchasers and their respective businesses obtained by RCFC, DTAG or their respective Affiliates in connection with the structuring, negotiating and execution of the transactions contemplated herein; provided, however, that RCFC, DTAG and their respective Affiliates may disclose this Agreement and such non-public information: (i) to their respective officers, directors, employees, agents, auditors, legal counsel and other advisers; (ii) if requested, to any Rating Agency which rates any Series of Notes issued under the Base Indenture; (iii) as may be required by any law, rule or regulation; (iv) as may be required by any direction, request or order of any judicial, arbitral, administrative or regulatory authority or proceedings; and (v) to such Persons as may be approved in writing by the Series 2010-2 Required Noteholders.

 

[SIGNATURES FOLLOW]

 

  

33

  

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective officers thereunto duty authorized, as of the date first above written.

 

	
  

	
RENTAL CAR FINANCE CORP.

 

By:  _____________________________________

Name:

Title:

 

	
  

	
DOLLAR THRIFTY AUTOMOTIVE GROUP, INC.

 

By:  _____________________________________

Name:

Title:

 

 

  

S-1

  

WELLS FARGO BANK, N.A., as the Initial Note Purchaser

	
  

	
By:

	 	 

	
  

	
Name:

	
  

	
Title:

 

  

S-2

  

EXHIBIT A

 

FORM OF BORROWING REQUEST

 

[____________________]

[____________________]

[____________________]

[____________________]

 

Ladies and Gentlemen:

 

This Borrowing Request is delivered to you pursuant to Section 2.02 of that certain Note Purchase Agreement, dated as of June 17, 2010 (as amended, supplemented, restated or otherwise modified from time to time, the “Note Purchase Agreement”), among Rental Car Finance Corp., an Oklahoma corporation, Dollar Thrifty Automotive Group, Inc., a Delaware corporation, the Initial Note Purchaser party thereto, and the other Note Purchasers from time to time party thereto.  Unless otherwise defined herein or as the context otherwise requires, terms used herein have the meaning assigned thereto under Section 1.01 of the Note Purchase Agreement.

 

The undersigned hereby requests that an Advance be made in the aggregate principal amount of $___________ on ____________, 201_ (the “Advance Date”).  Each Note Purchaser is hereby requested to make an Advance on such date in the amount set forth below opposite its name:

 

	
Wells Fargo Bank, N.A.

 

	
$___________________

	
[Other Note Purchasers]

 

	
$___________________

The undersigned hereby certifies that (i) the Aggregate Asset Amount as of the Advance Date will be an amount equal to $______________ , and (ii) the Series 2010-2 Enhancement Amount as of the Advance Date will be an amount equal to $______________.

 

The undersigned hereby acknowledges that the delivery of this Borrowing Request and the acceptance by the undersigned of the proceeds of the Advance requested hereby constitute a representation and warranty by the undersigned that, on the date hereof and on the Advance Date, and before and after giving effect thereto and to the application of the proceeds therefrom, (i) all conditions set forth in Article IV of the Note Purchase Agreement will have been satisfied, (ii) all the terms, covenants, agreements and conditions of the Series Documents to be complied with and performed by RCFC, DTAG, DTG Operations and any Permitted Lessee that is then a Lessee under the Master Lease at or before the time of such Advance shall have been complied with and performed in all material respects, and (iii) each of the representations and warranties of RCFC, DTAG, DTG Operations and any such Permitted Lessee made in the Series Documents to which they are a party shall be true and correct in all

 

 

  

Exhibit A - 1

  

material respects as of the time of such Advance (except to the extent they expressly relate to an earlier or later time).

 

The undersigned agrees that if prior to the time of the Advance requested hereby any matter certified to herein by it will not be true and correct at such time as if then made, it will immediately so notify each Note Purchaser.  Except to the extent, if any, that prior to the time of the Advance requested hereby each Note Purchaser shall receive written notice to the contrary from the undersigned, each matter certified to herein shall be deemed once again to be certified as true and correct at the date of such Advances as if then made.

 

Please wire transfer the proceeds of the Advance to the following account pursuant to the following instructions:

 

[insert payment instructions]

 

The undersigned has caused this Borrowing Request to be executed and delivered, and the certification and warranties contained herein to be made, by its duly Authorized Officer this ____ day of __________, 201_.

 

RENTAL CAR FINANCE CORP.

 

By:  ___________________________________

Name:

Title:

 

  

Exhibit A - 2

  

EXHIBIT B

 

FORM OF REDUCTION REQUEST

 

[____________________]

[____________________]

[____________________]

[____________________]

 

Ladies and Gentlemen:

 

This request for the reduction of the Series 2010-2 Maximum Invested Amount is delivered to you pursuant to Section 2.03(a) of that certain Note Purchase Agreement, dated as of June 17, 2010 (as amended, supplemented, restated or otherwise modified from time to time, the “Note Purchase Agreement”), among Rental Car Finance Corp., an Oklahoma corporation, Dollar Thrifty Automotive Group, Inc., a Delaware corporation, the Initial Note Purchaser party thereto and the other Note Purchasers from time to time party thereto.  Unless otherwise defined herein or as the context otherwise requires, terms used herein have the meaning assigned thereto under Section 1.01 of the Note Purchase Agreement.

 

The undersigned hereby requests that the Series 2010-2 Maximum Invested Amount be reduced in the aggregate amount of $___________ on ____________, 201_.  The Note Purchaser Funding Limit of each Note Purchaser shall be decreased by the amount set forth below opposite its name:

 

	
  

 

	
Amount of Reduction

 

	
Remaining Note Purchaser 

Funding Limit

 

	
Wells Fargo Bank, N.A.

 

	
$___________________

 

	
$___________________

 

	
[Other Note Purchasers]

 

	
$___________________

 

	
$___________________

 

The undersigned hereby represents and warrants that, after giving effect to the reduction requested hereby, the Series 2010-2 Maximum Invested Amount shall not be lower than the Series 2010-2 Invested Amount.  The undersigned agrees that if prior to the time of the reduction requested hereby the foregoing will not be true and correct at such time as if then made, it will immediately so notify each Note Purchaser.  Except to the extent, if any, that prior to the time of the reduction requested hereby each Note Purchaser shall receive written notice to the contrary from the undersigned, the matter certified to herein shall be deemed once again to be certified as true and correct at the date of such reduction as if then made.

 

 

  

Exhibit B - 1

  

The undersigned has caused this request to be executed and delivered, and the certification and warranties contained herein to be made, by its duly Authorized Officer this ____ day of __________, 201_.

 

RENTAL CAR FINANCE CORP.

 

By:  ___________________________________

Name:

Title:

 

  

Exhibit B - 2

  

EXHIBIT C

 

FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

This ASSIGNMENT AND ASSUMPTION AGREEMENT, dated as of [                                                                                                                     ], is made among [] (the “Transferor”), each purchaser listed as an Acquiring Purchaser on the signature pages hereof (each, an “Acquiring Purchaser”) and Rental Car Finance Corp., an Oklahoma corporation (“RCFC”).

 

W I T N E S S E T H:

 

WHEREAS, this Assignment and Assumption Agreement is being executed and delivered in accordance with Section 11.04 of the Note Purchase Agreement, dated as of June 17, 2010 (as from time to time amended, supplemented or otherwise modified in accordance with the terms thereof, the “Series 2010-2 Note Purchase Agreement”; capitalized terms used but not defined herein have the meanings given therein), among RCFC, Dollar Thrifty Automotive Group, Inc., a Delaware corporation (“DTAG” or, in its capacity as master servicer under the Master Lease referred to below, the “Master Servicer”), the Initial Note Purchaser party thereto and the note purchasers from time to time party thereto;

 

WHEREAS, each Acquiring Purchaser (if it is not already an existing Note Purchaser) wishes to become a Note Purchaser party to the Series 2010-2 Note Purchase Agreement; and

 

WHEREAS, the Transferor is selling and assigning to each Acquiring Purchaser, its rights, obligations and commitments under the Series 2010-2 Note Purchase Agreement, the Series 2010-2 Notes and the other Related Documents;

 

NOW, THEREFORE, the parties hereto hereby agree as follows:

 

Upon the execution and delivery of this Assignment and Assumption Agreement by each Acquiring Purchaser, the Transferor and RCFC (the date of such execution and delivery, the “Transfer Date”), each Acquiring Purchaser shall be a Note Purchaser party to the Series 2010-2 Note Purchase Agreement for all purposes thereof.

 

The Transferor acknowledges receipt from each Acquiring Purchaser of an amount equal to the purchase price, as agreed between the Transferor and such Acquiring Purchaser, of the portion being purchased by such Acquiring Purchaser (such Acquiring Purchaser’s “Purchased Percentage”) of the Transferor’s rights and obligations under the Series 2010-2 Note Purchase Agreement, the Series 2010-2 Notes and the other Related Documents as set forth on Schedule I hereto.  The Transferor hereby irrevocably sells, assigns and transfers to each Acquiring Purchaser, without recourse, representation or warranty except as provided herein, and each Acquiring Purchaser hereby irrevocably purchases, takes and assumes from the Transferor, such Acquiring Purchaser’s Purchased Percentage of the Transferor’s rights, obligations and commitments under the Series 2010-2 Note Purchase Agreement as set forth on Schedule I hereto.  The Transferor has made arrangements with each Acquiring Purchaser with

 

 

  

Exhibit C - 1

  

respect to (i) the portion, if any, to be paid, and the date or dates for payment, by the Transferor to such Acquiring Purchaser of any facility fee or other fees (collectively, the “Fees”) heretofore received by the Transferor pursuant to Section 2.04 of the Series 2010-2 Note Purchase Agreement prior to the Transfer Date and (ii) the portion, if any, to be paid, and the date or dates for payment, by such Acquiring Purchaser to the Transferor of Fees received by such Acquiring Purchaser pursuant to the Series 2010-2 Supplement from and after the Transfer Date.

 

From and after the Transfer Date, amounts that would otherwise be payable to or for the account of the Transferor pursuant to the Series 2010-2 Supplement or the Series 2010-2 Note Purchase Agreement shall, instead, be payable to or for the account of the Transferor and/or the Acquiring Purchasers, as the case may be, in accordance with their respective interests as reflected in this Assignment and Assumption Agreement, whether such amounts have accrued prior to the Transfer Date or accrue subsequent to the Transfer Date.

 

Each of the parties to this Assignment and Assumption Agreement agrees that at any time and from time to time upon the written request of any other party, it will execute and deliver such further documents and do such further acts and things as such other party may reasonably request in order to effect the purposes of this Assignment and Assumption Agreement.

 

By executing and delivering this Assignment and Assumption Agreement, the Transferor and each Acquiring Purchaser confirm to and agree with each other and the Acquiring Purchasers as follows:  (i) other than the representation and warranty that it is the legal and beneficial owner of the interest being assigned hereby free and clear of any adverse claim, the Transferor makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with the Series 2010-2 Supplement or the Series 2010-2 Note Purchase Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Series 2010-2 Indenture, the Series 2010-2 Notes, the other Series Documents or any instrument or document furnished pursuant thereto; (ii) the Transferor makes no representation or warranty and assumes no responsibility with respect to the financial condition of RCFC or the performance or observance by RCFC of any of RCFC’s obligations under the Series 2010-2 Indenture, the other Series Documents or any other instrument or document furnished pursuant hereto; (iii) each Acquiring Purchaser confirms that it has received a copy of the Series 2010-2 Indenture, the Series 2010-2 Note Purchase Agreement and such other Series Documents and other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption Agreement; (iv) each Acquiring Purchaser will, independently and without reliance upon the Transferor and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Series 2010-2 Note Purchase Agreement; and (v) each Acquiring Purchaser agrees for the benefit of the Transferor and RCFC that it will perform in accordance with its terms all of the obligations which by the terms of the Series 2010-2 Note Purchase Agreement are required to be performed by it as a Note Purchaser thereunder.  Each Acquiring Purchaser hereby represents and warrants to RCFC that the representations and warranties contained in Section 7.01 of the Series 2010-2 Note Purchase Agreement are true and correct with respect to such Acquiring Purchaser on and as of the date hereof and such Acquiring Purchaser shall be deemed to have made such

 

 

  

Exhibit C - 2

  

representations and warranties contained in Section 7.01 of the Series 2010-2 Note Purchase Agreement on and as of the date hereof and shall comply with the covenants and agreements contained in Section 7.01 of the Series 2010-2 Note Purchase Agreement applicable to Note Purchasers.

 

Schedule I hereto sets forth the revised Applicable Pro Rata Share (both used and unused) of the Transferor and each Acquiring Purchaser as of the Transfer Date as well as administrative information with respect to each Acquiring Purchaser.

 

This Assignment and Assumption Agreement and all matters arising under or in any manner relating to this Assignment and Assumption Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, without reference to its conflict of law provisions (other than Section 5-1401 of the New York General Obligations Law), and the obligations, rights and remedies of the parties hereto shall be determined in accordance with such law.

 

 

  

Exhibit C - 3

  

IN WITNESS WHEREOF, the parties hereto have caused this Assignment and Assumption Agreement to be executed by their respective duly authorized officers as of the date first set forth above.

 

 

	
  

	
[           ], as Transferor

 

	
  

	
By:______________________________

	
  

	
Title:

 

	
  

	
By:______________________________

	
  

	
Title:

 

 

	
  

	
[           ], as Acquiring Purchaser

 

	
  

	
By:______________________________

	
  

	
Title:

 

 

  

Exhibit C - 4

  

CONSENTED AND ACKNOWLEDGED:

 

RENTAL CAR FINANCE CORP.

 

By: _______________________________

Title:

 

  

Exhibit C - 5

  

SCHEDULE I

LIST OF ADDRESSES FOR NOTICES

AND OF APPLICABLE PRO RATA SHARE

 

Purchased Percentage: [     ]

 

 

[TRANSFEROR]

 

Address:                      [           ]

Attention: [                      ]

Telephone: [                    ]

Facsimile: [                       ]

 

[Prior Applicable Pro Rata Share:                                                                     [           ] (used) [                      ] (unused)

 

Revised Applicable Pro Rata Share:                                                                [           ] (used) [                      ] (unused)

 

Prior Note Purchaser Funding Limit:                                                                [           ]

 

Revised Note Purchaser Funding Limit:                                                          [           ]]

 

 [ACQUIRING PURCHASER]                                                                

 

Address:                      [           ]

Attention: [                      ]

Telephone: [                    ]

Facsimile: [                       ]

 

[Prior Applicable Pro Rata Share:                                                                    [           ] (used) [                      ] (unused)

 

Revised Applicable Pro Rata Share:                                                                [           ] (used) [                      ] (unused)

 

Prior Note Purchaser Funding Limit:                                                                [           ]

 

Revised Note Purchaser Funding Limit:                                                          [           ]]

 

 

  

Exhibit C - 6

  

SCHEDULE I

 

ADDRESSES FOR NOTICE

 

In the case of RCFC:

 

Rental Car Finance Corp.

5330 East 31st Street

Tulsa, Oklahoma 74135

Attention:  Pamela S. Peck

Facsimile:  (918) 669-2301

In the case of the Master Servicer:

 

Dollar Thrifty Automotive Group, Inc.

5330 East 31st Street

Tulsa, Oklahoma 74135

Attention:  Pamela S. Peck

Facsimile:  (918) 669-2301

In the case of the Initial Note Purchaser:

 

Wells Fargo Bank, N.A.

MAC U1803-011

102 W. Main Street, 1st Floor

Emmett, Idaho 83617-2936

Attention:  Barbara Nau, Vice President

Facsimile:  (208) 477-2105

with a copy to:

Wells Fargo Bank, Law Department

MAC A0194-263

45 Fremont Street, 26th Floor

San Francisco, CA 94105

Attention: Penny Shepherd

 

  

Schedule I - 1 

  

SCHEDULE II

 

NOTE PURCHASER FUNDING LIMITS

 

 

	
Note Purchaser

	
Note Purchaser Funding Limit

 

	
Wells Fargo Bank, N.A.

	
300 million U.S. dollars (U.S.$300,000,000)

 

 

  

Schedule II - 1 

  

SCHEDULE III

 

LITIGATION CLAIMS

 

None, other than those set forth in Dollar Thrifty Automotive Group, Inc.’s (i) Annual Report on Form 10-K for the fiscal year ended December 31, 2009, (ii) Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2010 and (iii) preliminary proxy statement dated May 25, 2010 under the heading “The Merger – Litigation Relating to the Merger,” which was filed with the Securities and Exchange Commission by Hertz Global Holdings, Inc. on May 26, 2010 as part of a Registration Statement on Form S-4.

 

 

  

Schedule III - 1exhibit4222.htm

Exhibit 4.222

 

 

RENTAL CAR FINANCE CORP.,

 

as Issuer

 

and

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

 

as Trustee

 

______________________

 

SERIES 2010-2 SUPPLEMENT

 

dated as of June 17, 2010

 

to

 

AMENDED AND RESTATED BASE INDENTURE

 

dated as of February 14, 2007

 

Rental Car Asset Backed Variable Funding Notes, Series 2010-2

 

 

 

  

  

  

TABLE OF CONTENTS

Page

 

 

ARTICLE 1.

DESIGNATION

 

 

ARTICLE 2.

DEFINITIONS AND CONSTRUCTION

 

 

ARTICLE 3.

GRANT OF RIGHTS UNDER THE MASTER LEASE

 

	
  

	
Section 3.1

	
Grant of Security Interest 

	
35

 

 

ARTICLE 4A

INITIAL ISSUANCE AND INCREASES AND DECREASES OF

SERIES 2010-2 INVESTED AMOUNT OF SERIES 2010-2 NOTES

 

 

	
  

	
Section 4A.1

	
Issuance in Definitive Form 

	
37

 

	
  

	
Section 4A.2

	
Procedure for Increasing the Series 2010-2 Invested Amount 

	
37

 

	
  

	
Section 4A.3

	
Decreases 

	
39

 

 

ARTICLE 4.

ALLOCATION AND APPLICATION OF COLLECTIONS

 

 

	
  

	
Section 4.6

	
Establishment of Accounts. 

	
41

 

	
  

	
Section 4.7

	
Allocations with Respect to the Series 2010-2 Notes 

	
41

 

	
  

	
Section 4.8

	
Monthly Payments 

	
49

 

	
  

	
Section 4.9

	
Payment of Note Interest 

	
51

 

	
  

	
Section 4.10

	
Payment of Note Principal; Decreases 

	
52

 

	
  

	
Section 4.11

	
Retained Distribution Account 

	
55

 

	
  

	
Section 4.12

	
Series 2010-2 Distribution Account 

	
55

 

	
  

	
Section 4.13

	
The Master Servicer’s or the Back-Up Servicer’s Failure to Instruct the Trustee to Make a Deposit or Payment 

	57

 

	
  

	
Section 4.14

	
Lease Payment Loss Draw on Series 2010-2 Letter of Credit 

	57

 

	
  

	
Section 4.15

	
Claim Under the Demand Note 

	57

 

	
  

	
Section 4.16

	
Series 2010-2 Letter of Credit Termination Demand 

	58

 

	
  

	
Section 4.17

	
The Series 2010-2 Cash Collateral Account 

	60

  

i

  

 

	
  

	
Section 4.18

	
Application of Series 2010-2 Cash Liquidity Amount; Restrictions on Amounts Drawn Under Series 2010-2 Letter of Credit 

	62

 

	
  

	
Section 4.19

	
Series 2010-2 Interest Rate Caps 

	63

 

	
  

	
Section 4.20

	
Exchange of Vehicles 

	64

 

	
  

	
Section 4.21

	
Deficiencies in Payments 

	65

 

	
  

	
Section 4.22

	
Appointment of Trustee to Hold Letter of Credit 

	65

 

 

ARTICLE 5.

AMORTIZATION EVENTS

 

 

	
  

	
Section 5.1

	
Series 2010-2 Amortization Events 

	65

 

	
  

	
Section 5.2

	
Waiver of Past Events 

	69

 

	
  

	
Section 5.3

	
Rights of the Trustee upon Amortization Event or Certain Events of Default. 

	69

 

	
  

	
Section 5.4

	
Servicer Defaults. 

	69

 

 

ARTICLE 6.

COVENANTS

 

 

	
  

	
Section 6.1

	
Series 2010-2 Minimum Subordinated Amount 

	70

 

	
  

	
Section 6.2

	
Series 2010-2 Minimum Liquidity Amount 

	70

 

	
  

	
Section 6.3

	
Financed Vehicles. 

	70

 

	
  

	
Section 6.4

	
Other Series. 

	70

 

ARTICLE 7.

SERIES 2010-2 NOTES

 

	
  

	
Section 7.1

	
Form of Series 2010-2 Notes. 

	70

 

 

ARTICLE 8.

GENERAL

 

 

	
  

	
Section 8.1

	
Exhibits 

	71

 

	
  

	
Section 8.2

	
Ratification of Base Indenture 

	71

 

	
  

	
Section 8.3

	
Counterparts 

	71

 

	
  

	
Section 8.4

	
Governing Law 

	71

 

	
  

	
Section 8.5

	
Amendments. 

	71

 

	
  

	
Section 8.6

	
Monthly Noteholders’ Statement. 

	72

 

	
  

	
Section 8.7

	
Third-Party Market Value. 

	75

  

ii

  

 

	
  

	
Section 8.8

	
Trustee Directions. 

	76

 

	
  

	
Section 8.9

	
Additional UCC Representations. 

	76

 

	
  

	
Section 8.10

	
Servicer Financial Covenant Event of Default. 

	76

 

	
  

	
Section 8.11

	
Termination. 

	76

Schedule 1                   -        Maximum Manufacturer Percentages

 

Annex I                        -        Additional UCC Representations

Exhibit A                      -        Form of Rental Car Asset Backed Variable Funding Note, Series 2010-2

Exhibit B                      -        Form of Demand Note

Exhibit C                      -        Form of Notice of Series 2010-2 Lease Payment Losses

Exhibit D                      -        Form of Monthly Noteholders’ Statement

  

iii

  

THIS SERIES 2010-2 SUPPLEMENT, dated as of June 17, 2010 (as the same may be amended, supplemented, restated or otherwise modified from time to time in accordance with the terms hereof and of the Base Indenture referred to below, this “Supplement”), between RENTAL CAR FINANCE CORP., a special purpose Oklahoma corporation (“RCFC” or the “Issuer”), and DEUTSCHE BANK TRUST COMPANY AMERICAS, a New York banking corporation (together with its successors in trust thereunder as provided in the Base Indenture referred to below, the “Trustee”), to the Amended and Restated Base Indenture, dated as of February 14, 2007, between RCFC and the Trustee (as the same may be further amended, supplemented, restated or otherwise modified from time to time in accordance with its terms, exclusive of Supplements creating a new Series of Notes, the “Base Indenture”).

 

W I T N E S S E T H:

 

WHEREAS, Sections 2.2, 2.3, 11.1 and 11.3 of the Base Indenture provide, among other things, that RCFC and the Trustee may at any time and from time to time enter into a Series Supplement to the Base Indenture for the purpose of authorizing the issuance of one or more Series of Notes;

 

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

 

ARTICLE 1.

DESIGNATION

 

(a)           There is hereby created a Series of Notes to be issued pursuant to the Base Indenture and this Supplement, and such Series of Notes shall be designated generally as Rental Car Asset Backed Variable Funding Notes, Series 2010-2.  The Rental Car Asset Backed Variable Funding Notes, Series 2010-2, shall be issued in one class and shall be referred to, collectively, as the “Series 2010-2 Notes”.

 

(b)           The net proceeds from the sale of and Increases in respect of the Series 2010-2 Notes shall be deposited into the Group VI Collection Account, and such proceeds and the proceeds of Increases in respect thereof shall be used on and after the Series 2010-2 Closing Date to acquire Acquired Vehicles from certain Eligible Manufacturers or otherwise or to refinance the same and, in certain circumstances, to pay principal on amortizing Group VI Series of Notes other than the Series 2010-2 Notes.

 

(c)           The Series 2010-2 Notes are a Segregated Series of Notes (as more fully provided in the Base Indenture) and are hereby designated as a “Group VI Series of Notes”.  The Issuer may from time to time issue additional Segregated Series of Notes that the related Series Supplements will indicate are entitled to share, together with the Series 2010-2 Notes in the Group VI Collateral and any other Collateral and Master Collateral designated as security for the Series 2010-2 Notes under this Supplement and the Master Collateral Agency Agreement (the Series 2010-2 Notes and any such additional Segregated Series, each, a “Group VI Series of Notes” and, collectively, the “Group VI Series of Notes”).  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 Group VI Series of Notes.

 

(d)           If, notwithstanding the foregoing provisions of this Article 1,  the provisions of Article 3, the provisions of Section 2.2 of the Master Collateral Agency Agreement or any other provision in any Related Document, the Series 2010-2 Notes are determined by any court to be secured by collateral other than the Group VI Collateral and any other collateral designated as security for the Series 2010-2 Notes (and, as applicable, any other Group VI Series of Notes) under this Supplement or any other supplement to the Base Indenture relating to the issuance of any other Group VI Series of Notes thereunder or under the Master Collateral Agency Agreement or any other Related Document (such collateral other than as specified, the “Non-Group VI Collateral”), then the interest of the Series 2010-2 Noteholders in such Non-Group VI Collateral shall be subordinate in all respects to the interests of the Noteholders of the Series of Notes (other than with respect to collections designated by RCFC as shared collections allocable to the Series 2010-2 Notes) to which such Non-Group VI Collateral was pledged by the terms of the Base Indenture, any applicable Series Supplement thereto, the Master Collateral Agency Agreement or any other Related Document.  The following shall govern the interpretation and construction of the provisions of this Supplement:  (i) this Section 1(d) is intended to constitute a subordination agreement under New York law and for purposes of Section 510(a) of the Bankruptcy Code, (ii) the subordination provided for in this Section 1(d) is intended to and shall be deemed to constitute a “complete subordination” under New York law, and, as such, shall be applicable whether or not the Issuer or any Series 2010-2 Noteholder is a debtor in a case (a “bankruptcy case”) under the Bankruptcy Code, (iii) (A) any reference to the Series 2010-2 Notes shall include all obligations of the Issuer now or hereafter existing under each of such Series 2010-2 Notes, whether for principal, interest, fees, expenses or otherwise, and (B) without limiting the generality of the foregoing, “interest” owing on the Series 2010-2 Notes shall expressly include any and all interest accruing after the commencement of any bankruptcy case or other insolvency proceeding where the Issuer is the debtor, notwithstanding any provision or rule of law (including, without limitation, 11 U.S.C. §§ 502, 506(b) (1994)) that might restrict the rights of any holder of an interest in the Series 2010-2 Notes, as against the Issuer or any one else, to collect such interest, (iv) “payments” prohibited under the subordination provisions of this Section 1(d) shall include any distributions of any type, whether cash, other debt instruments, or any equity instruments, regardless of the source thereof, and (v) the holder of any interest in the Series 2010-2 Notes retains such holder’s right, under 11 U.S.C. § 1126 (1994), to vote to accept or reject any plan of reorganization proposed for the Issuer in any subsequent bankruptcy of the Issuer; provided, however, that, regardless of any such vote or of the exercise of any other rights such holder (or its agents) may have under the Bankruptcy Code, and without limiting the generality of the other clauses of this Section 1(d), any distributions that such holder is to receive on account of such holder’s interest in the Series 2010-2 Notes under any such plan of reorganization, from the Issuer, from any collateral, from any guarantor, or from any other source shall be subordinated in right of payment as set forth in this Indenture (including this Section 1(d)) and shall instead be distributed in the order of priority set forth in this Indenture (including this Section 1(d)).

 

 

  

2

  

ARTICLE 2.

DEFINITIONS AND CONSTRUCTION

 

(a)           All capitalized terms not otherwise defined in this Supplement are defined in the Definitions List attached to the Base Indenture as Schedule 1 thereto (as the same may be amended, supplemented, restated or otherwise modified from time to time in accordance with the terms of the Base Indenture, the “Definitions List”).  All capitalized terms defined in this Supplement that are also defined in the Definitions List to the Base Indenture shall, unless the context otherwise requires, have the meanings set forth in this Supplement.  All references to (i) “Articles”, “Sections” or “Subsections” herein shall refer to Articles, Sections or Subsections of the Base Indenture, (ii) any agreement shall include amendments, restatements, modifications and supplements thereto, (iii) any applicable law or specific provision thereof shall include amendments, supplements and successors thereto, and (iv) any Person shall include such Person’s successors and permitted assigns and, in the case of any governmental authority, any Person succeeding to its functions and capacities, in each case except as otherwise provided herein.  Unless otherwise stated herein, as the context otherwise requires or if such term is otherwise defined in the Base Indenture, each capitalized term used or defined herein shall relate only to the Series 2010-2 Notes and not to any other Series of Notes issued by the Issuer.  In addition, with respect to the Series 2010-2 Notes, references in the Base Indenture to (i) the “Lease” shall be deemed to refer to the Master Lease, (ii) “Lessee” shall be deemed to refer to any or all of the Lessees under the Master Lease, as the context requires, and (iii) when the terms “Lease,” or “Lessee” are embedded in a defined term within the Base Indenture, they shall be deemed to refer to the corresponding concept described in clauses (i) and (ii), as applicable, except in each case as otherwise specified in this Supplement or as the context may otherwise require.

 

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

 

“Accumulated Principal Draw Amount” means, as of any date of determination during any Insolvency Period, the total amount of draws under the Series 2010-2 Letter of Credit allocated to the Series 2010-2 Noteholders pursuant to Section 4.7(c) prior to such date of determination during such Insolvency Period.

 

“Acquired Vehicles” means any Eligible Vehicles acquired by RCFC and leased by RCFC to any of the Lessees under Annex A of the Master Lease.

 

“Additional Lessee” has the meaning specified in the preamble to the Master Lease.

 

“Aggregate Asset Amount” means, with respect to the Series 2010-2 Notes, on any date of determination, without duplication, the sum of (i) the Net Book Value of all Group VI Vehicles that are Eligible Vehicles as of such date with respect to which the applicable Vehicle Lease Expiration Date has not occurred, plus (ii) the Exchange Agreement Group VI Rights Value as of such date, plus (iii) all amounts due to RCFC from each Lessee under the Master Lease in connection with any sale or other disposition of Group VI Vehicles, plus (iv) all

 

 

  

3

  

amounts receivable, as of such date, by RCFC or a Lessee from any other Person in connection with the auction, sale or other disposition of Group VI Vehicles (other than amounts that constitute Ineligible Receivables as of such date), plus (v) all accrued and unpaid Monthly Base Rent and Monthly Supplemental Payments (without double counting amounts specified in clause (iii) above) payable as of such date in respect of the Group VI Vehicles, plus (vi) cash and Permitted Investments on deposit as of such date in the Collection Account constituting Group VI Collateral (less any portion thereof allocated to the Retained Interest), plus (vii) cash and Permitted Investments as of such date constituting Group VI Collateral and cash and Permitted Investments as of such date in the Master Collateral Account constituting Group VI Master Collateral.

 

“Annual Certificate” has the meaning specified in Section 24.4(g) of the Master Lease.

 

“Asset Amount Deficiency” means, with respect to the Series 2010-2 Notes as of any date of determination, the amount, if any, by which the Required Asset Amount exceeds the Aggregate Asset Amount on such date.

 

“Authorized Officer” means (a) as to RCFC, any of its President, any Vice President, the Treasurer or an Assistant Treasurer, the Secretary or any Assistant Secretary and (b) as to DTAG (including in its capacity as the Master Servicer), DTG Operations (including in its capacities as a Lessee and as a Servicer), any Additional Lessee or additional Servicer, those officers, employees and agents of DTAG, DTG Operations, such Additional Lessee or such other Servicer, as the case may be, in each case whose signatures and incumbency shall have been certified as the authentic signatures of duly qualified and elected persons authorized to act on behalf of such entities.

 

“Availability Payment” has the meaning specified in Section 5.2 of the Master Lease.

 

“Available Subordinated Amount” means, on any date of determination, with respect to the Series 2010-2 Notes, the Series 2010-2 Available Subordinated Amount, and with respect to each other Group VI Series of Notes, the amount specified with respect to such Series of Notes in the definition of “Available Subordinated Amount” in the applicable Series Supplement.

 

“Back-Up Disposition Agent” means Fiserv Automotive Solutions, Inc., a Delaware corporation, and its successors under the Back-Up Disposition Agent Agreement.

 

“Back-Up Disposition Agent Agreement” means that certain Back-Up Disposition Agent Agreement, dated as of February 23, 2010 (as amended, restated, supplemented or otherwise modified from time to time in accordance with the provisions thereof), between the Back-Up Disposition Agent, the Issuer, the Master Servicer, each Servicer from time to time party thereto, the Trustee and the Master Collateral Agent.

 

“Back-Up Servicer” means Lord Securities Corporation, a Delaware corporation, and its successors under the Back-Up Servicing Agreement.

 

 

  

4

  

“Back-Up Servicing Agreement” means that certain Back-Up Servicing Agreement, dated as of April 8, 2010 (as amended, restated, supplemented or otherwise modified from time to time in accordance with the provisions thereof), between the Back-Up Servicer, the Master Servicer, each Servicer from time to time party thereto, the Issuer, the Trustee and the Master Collateral Agent.

 

“Base Indenture” has the meaning specified in the preamble hereto.

 

“Base Rate” means, with respect to any Series 2010-2 Note bearing interest at the Base Rate pursuant to the provisions of the Series 2010-2 Note Purchase Agreement for any day during the related Base Tranche Period, the per annum rate equal to the sum of (a) the greater of (i) (1) with respect to Series 2010-2 Notes held by Wells Fargo Bank, N.A., that interest rate denominated and set by Wells Fargo Bank, N.A. as its “prime rate” from time to time as an interest rate basis for borrowings, as in effect on such day, and (2) with respect to Series 2010-2 Notes held by any other Series 2010-2 Noteholder, that interest rate denominated and set by such Series 2010-2 Noteholder as its “prime rate” from time to time as an interest rate basis for borrowings, as in effect on such day, and (ii) the Federal Funds Rate as of such day plus 0.50% per annum and (b) 2.00% per annum; provided, that the Base Rate shall in no event be higher than the maximum rate permitted by applicable law.  The “prime rate” is but one of several interest rate bases used by Wells Fargo Bank, N.A. and any other Series 2010-2 Noteholder, respectively, and each of the foregoing lends at interest rates above and below their respective “prime rate.”

 

“Base Tranche Period” means, with respect to any Series 2010-2 Note bearing interest at the Base Rate pursuant to the provisions of the Series 2010-2 Note Purchase Agreement, a period from and including a Determination Date (or, if later, the date such Series 2010-2 Note began bearing interest at the Base Rate) to but excluding the next succeeding Determination Date (or, if earlier, the date such Series 2010-2 Note ceased bearing interest at the Base Rate).

 

 “BMW” means BMW of North America, LLC, a Delaware limited liability company, and its Successors and Assigns.

 

“Board of Directors” means the Board of Directors of DTAG, RCFC, DTG Operations, or any Additional Lessee or Servicer, as applicable, or any authorized committee of the Board of Directors.

 

“Capital Stock” means any and all shares, interests, participations or other equivalents (however designated) of capital stock of a corporation, any and all equivalent ownership interests (including membership interests) in a Person (other than a corporation) and any and all warrants or options to purchase any of the foregoing.

 

“Carrying Charges” means, as of any day, (i) without duplication, the aggregate of all Trustee fees, servicing fees (other than supplemental servicing fees), fees, expenses and costs payable by RCFC in connection with an Exchange Program, and other fees and expenses, premiums, breakage costs, increased costs, termination payments under any hedges, taxes, administrative costs and indemnity amounts, if any, accrued and unpaid by the Lessor under the

 

 

  

5

  

Base Indenture, the other Related Documents, the Back-Up Disposition Agent Agreement, the Back-Up Servicing Agreement, the Series 2010-2 Note Purchase Agreement, the Fee Letters referred to in the Series 2010-2 Note Purchase Agreement or other agreements with the Enhancement Providers, if any, in each case that have accrued with respect to the Series 2010-2 Notes during the Related Month, plus (ii) without duplication, all amounts described in clause (i) of this definition payable by the Lessees which have accrued during the Related Month.

 

“Casualty” means, with respect to any Vehicle, that such Vehicle is lost, seized, stolen (and not recovered within sixty (60) days of being lost, seized or reported stolen), destroyed or otherwise rendered permanently unfit or unavailable for use (including Vehicles that are rejected pursuant to Section 2.2 of the Master Lease).

 

“Casualty Payment” has the meaning specified in Section 7 of the Master Lease.

 

“Certificate of Credit Demand” means a certificate in such form as may be specified in the Series 2010-2 Letter of Credit pursuant to which a credit demand is made under such Series 2010-2 Letter of Credit.

 

“Certificate of Termination Demand” means a certificate in such form as may be specified in the Series 2010-2 Letter of Credit pursuant to which a termination demand is made under such Series 2010-2 Letter of Credit.

 

“Change in Control” means, (a) except for the seven shares of common stock of DTG Operations owned by Thrifty, any Person other than DTAG shall own any Capital Stock of DTG Operations or otherwise have the ability to elect any members of the board of directors of DTG Operations; (b) a “person” or “group” (within the meaning of Sections 13(d) and 14(d)(2) of the Exchange Act) (i) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of more than 35% of the total then outstanding voting power of the Voting Stock of DTAG or (ii) has the right or the ability by voting right, contract or otherwise to elect or designate for election a majority of the board of directors of DTAG; (c) during the three-year period occurring subsequent to June 17, 2010, individuals who at the beginning of such period constituted the board of directors of DTAG (together with any new directors whose election by such board of directors, or whose nomination for election by the shareholders of DTAG, as the case may be, was approved by a vote of 662⁄3% of the directors then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute 50% or more of the board of directors then in office; or (d) any Person or two or more Persons acting in concert shall have acquired by contract or otherwise the power to direct or control, directly or indirectly, the management or policies of DTAG or DTG Operations.

 

“Chrysler” means Chrysler Group LLC, a Delaware limited liability company, and its Successors and Assigns; provided, however, that any Group VI Vehicles manufactured by Chrysler LLC or its affiliates shall be deemed to have been manufactured by Chrysler for purposes of this Supplement and the other Related Documents.

 

 

  

6

  

“Collections” means, on any day, the following amounts received on such day: (i) all payments including, without limitation, all Recoveries and Lease Payment Recoveries, by or on behalf of a Lessee under the Master Lease, (ii) the Unused Exchange Proceeds and all Substitute Group VI Exchanged Vehicle Proceeds, (iii) all payments including, without limitation, all Recoveries and Lease Payment Recoveries, by, or on behalf of any other Person as proceeds from the sale of Group VI Vehicles and payment of insurance proceeds in respect of Group VI Vehicles or incentive or other payments from Manufacturers in respect of Group VI Vehicles, whether such payments are in the form of cash, checks, wire transfers or other forms of payment and whether in respect of principal, interest, fees, expenses or otherwise, and (iv) all amounts earned on Permitted Investments representing investment of funds in the Group VI Collection Account and in the Master Collateral Account (to the extent allocable to the Trustee as Beneficiary thereunder for the benefit of the Group VI Noteholders); provided, that the amounts included in clauses (i) through (iv) shall not include any Exchange Proceeds except at such time as RCFC is permitted to receive, pledge, borrow or otherwise obtain the benefits of such Exchange Proceeds consistent with the limitations set forth in the “safe harbor” provisions of Treasury Regulation Section 1.1031(k)-1(g)(6).

 

“Controlling Noteholder” means, at any time, the Series 2010-2 Noteholder holding the largest percentage of the aggregate Series 2010-2 Invested Amount of all Outstanding Series 2010-2 Notes at such time (excluding, for purposes of making the foregoing calculation, any Series 2010-2 Notes held by DTAG or any Affiliate of DTAG); provided that, if more than one Series 2010-2 Noteholder each holds the largest percentage of the aggregate Series 2010-2 Invested Amount of all Outstanding Series 2010-2 Notes, the Controlling Noteholder shall be (i) the Initial Note Purchaser, if the Initial Note Purchaser or any of its Affiliates is one of such Series 2010-2 Noteholders holding the largest percentage of the aggregate Series 2010-2 Invested Amount of all Outstanding Series 2010-2 Notes, or (ii) otherwise, such Series 2010-2 Noteholder as may be appointed by the Series 2010-2 Required Noteholders; provided further that each Series 2010-2 Noteholder and each Affiliate of such Series 2010-2 Noteholder that acquires an interest in any Series 2010-2 Note shall be deemed to be the same Series 2010-2 Noteholder for purposes of this definition and if such parties collectively are the Series 2010-2 Noteholder holding the largest percentage of the aggregate Series 2010-2 Invested Amount of all Outstanding Series 2010-2 Notes, then the Controlling Noteholder shall be, in the case of the Initial Note Purchaser and its Affiliates, the Initial Note Purchaser, and in the case of any other Series 2010-2 Noteholder and its Affiliates, any one of such Series 2010-2 Noteholders as they may appoint by written notice to the Trustee and the Issuer.

 

“Credit Agreement” means that certain Credit Agreement, dated as of June 15, 2007, among DTAG, as the borrower, the various financial institutions that are or may become parties thereto, as lenders, Deutsche Bank Trust Company Americas, as the administrative agent for the lenders, The Bank of Nova Scotia, as the syndication agent for the lenders, and Deutsche Bank Securities Inc. and Scotia Capital, as the joint lead arrangers and joint bookrunners, as the same may be amended, supplemented, restated or otherwise modified from time to time in accordance with its terms.

 

“Credit Demand” means a demand for a LOC Credit Disbursement under the Series 2010-2 Letter of Credit pursuant to a Certificate of Credit Demand.

 

 

  

7

  

“Credit Draw” means a draw on the Series 2010-2 Letter of Credit pursuant to a Certificate of Credit Demand.

 

“Credit Support Annex” has the meaning set forth in Section 4.19(b) of this Supplement.

 

“Daily Interest Amount” means, with respect to any Series 2010-2 Note and any day in a Series 2010-2 Interest Period, an amount equal to the result of (a) the sum for each such day of (i) the product of (x) LIBOR for such Series 2010-2 Interest Period plus 3.75% per annum and (y) the portion of the Series 2010-2 Invested Amount represented by such Series 2010-2 Note as of the close of business on such day not accruing interest at the Base Rate in accordance with the Series 2010-2 Note Purchase Agreement, plus (ii) the product of (x) the Base Rate with respect to such Series 2010-2 Note for such day and (y) the portion of the Series 2010-2 Invested Amount represented by such Series 2010-2 Note as of the close of business on such day accruing interest at the Base Rate in accordance with the Series 2010-2 Note Purchase Agreement, divided by (b) 360.

 

“Daily Report” has the meaning specified in Section 24.4(a) of the Master Lease.

 

“Decrease” means a Voluntary Decrease or a Mandatory Decrease, as applicable.

 

“Demand Note” means that certain Demand Note, dated as of June 17, 2010, made by DTAG to the Issuer in substantially the form attached as Exhibit B to this Supplement.

 

“Depreciation Charge” means, for any date of determination, with respect to any Vehicle leased under the Master Lease, the scheduled daily depreciation charge for such Vehicle set forth by the Servicer in the Depreciation Schedule for such Vehicle.  If such charge is expressed as a percentage, the Depreciation Charge for such Vehicle for such day shall be such percentage multiplied by the Capitalized Cost for such Vehicle.

 

“Depreciation Schedule” means a schedule of estimated daily depreciation prepared by the applicable Servicer, and revised from time to time in the applicable Servicer’s sole discretion, with respect to each type of Vehicle that is an Eligible Vehicle and that is purchased, financed or refinanced by RCFC.

 

“Disposition Proceeds” shall have the meaning specified in the Base Indenture and shall specifically include Substitute Group VI Exchanged Vehicle Proceeds or, to the extent Substitute Group VI Exchanged Vehicle Proceeds are not designated with respect thereto, the Exchange Proceeds from Group VI Exchanged Vehicles.

 

“DTAG” means Dollar Thrifty Automotive Group, Inc., a Delaware corporation.

 

“DTG Operations” means DTG Operations, Inc., an Oklahoma corporation.

 

“Eligible Manufacturer” means, Chrysler, General Motors, Ford, Nissan, Volkswagen, Toyota, Honda, Mazda, Subaru, Kia, Hyundai, Mitsubishi, Isuzu, Suzuki, BMW, Jaguar, and Mercedes-Benz as set forth in Schedule 1 hereto (as such schedule, subject to receiving the prior written consent of the Controlling Noteholder and each Enhancement

 

 

  

8

  

Provider (if any), may be amended, supplemented, restated or otherwise modified from time to time), and, in each case, any other Manufacturer if such Manufacturer has been approved in writing by the Controlling Noteholder and each Enhancement Provider, if any.

 

“Eligible Vehicle” means, on any date of determination, a Group VI Vehicle manufactured by an Eligible Manufacturer (determined at the time of the acquisition, financing or refinancing thereof) and satisfying any further eligibility requirements specified in any Series Supplement for a Group VI Series of Notes (other than with respect to the Maximum Manufacturer Percentage), or with respect to which all such eligibility requirements not otherwise satisfied have been duly waived by the Required Beneficiaries with respect to Group VI Series of Notes (to the extent such waiver is permitted by each applicable Series Supplement); provided, however, that in no event may a Group VI Vehicle be an Eligible Vehicle (i) after the expiration of the applicable Maximum Vehicle Lease Term under the Master Lease, (ii) if such Vehicle was manufactured by Old Chrysler or Old GM and was not owned by RCFC on the Series 2010-2 Closing Date or (iii) at any time that it is a Program Vehicle.

 

“Enhancement Provider” means with respect to the Series 2010-2 Notes, the Series 2010-2 Letter of Credit Provider with respect to any Series 2010-2 Letter of Credit entered into following the Series 2010-2 Closing Date.

 

“Escrow Account” means a segregated trust account established, consistent with the requirements of the “safe harbor” provisions of Treasury Regulations §§ 1.1031(k)-1(g)(4) and 1.1031(k)-1(g)(6), in accordance with the terms of the Exchange Agreement and into which are deposited the Exchange Proceeds and other funds with which to purchase Group VI Replacement Vehicles.

 

“Excess Amount” has the meaning set forth in Section 4.7(d)(vi).

 

“Excess Funding Account” means, as of any date, with respect to the Series 2010-2 Notes, the Series 2010-2 Excess Funding Account, and with respect to each other Group VI Series of Notes, the account specified with respect to such Group VI Series of Notes in the definition of “Excess Funding Account” in the applicable Series Supplement.

 

“Exchange Agreement” means the Master Exchange and Trust Agreement dated as of July 23, 2001 among the Qualified Intermediary, RCFC, DTG Operations, Thrifty Rent-A-Car System, Inc., The Chicago Trust Company and Chicago Deferred Exchange Company, LLC (f/k/a Chicago Deferred Exchange Corporation) pursuant to which, among other things, the Qualified Intermediary holds the Exchange Proceeds in an Escrow Account consistent with the requirements of the “safe harbor” provisions of Treasury Regulations Sections 1.1031(k)-1(g)(4) and 1.1031(k)-1(g)(6), as the same agreement may be amended, supplemented, restated or otherwise modified from time to time in accordance with its terms.

 

“Exchange Agreement Group VI Rights Value” means the value of the Group VI Assignment of Exchange Agreement, which value shall be deemed to equal as of any given time the amount of the Exchange Proceeds at such time.

 

“Exchange Proceeds” means as of any given time the sum of (i) the money or other property from the sale of any Group VI Exchanged Vehicle that is held in an Escrow

 

 

  

9

  

Account as of such time; (ii) any interest or other amounts earned on the money or other property from the sale of any Group VI Exchanged Vehicle that is held in an Escrow Account as of such time; (iii) any amounts receivable from dealers or other Persons on account of Group VI Exchanged Vehicles; (iv) the money or other property from the sale of any Group VI Exchanged Vehicle held in the Master Collateral Account for the benefit of the Qualified Intermediary as of such time; and (v) any interest or other amounts earned on the money or other property from the sale of any Group VI Exchanged Vehicle held in the Master Collateral Account for the benefit of the Qualified Intermediary as of such time.

 

“Exchange Program” means a program under which RCFC will exchange Group VI Exchanged Vehicles for Group VI Replacement Vehicles with the intent of qualifying for deferral of gain and loss under Section 1031 of the Code.

 

“Federal Funds Rate” means, with respect to any Series 2010-2 Note for any period, a fluctuating interest rate per annum equal for each day during such period to (a) the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not a Business Day, for the immediately preceding Business Day) by the Federal Reserve Bank of New York, or (b) if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions received by the Controlling Noteholder from three (3) Federal funds brokers of recognized standing selected by it.

 

 “Financed Vehicle” means an Eligible Vehicle that is financed by RCFC and leased to a Lessee under Annex B to the Master Lease on or after the Lease Commencement Date.

 

“Financing Lease” means the Master Lease as supplemented by Annex B to the Master Lease.

 

“Financing Sources” has the meaning specified in the Master Collateral Agency Agreement.

 

“Ford” means Ford Motor Company, a Delaware corporation, and its Successors and Assigns.

 

“General Motors” means General Motors LLC (formerly known as General Motors Company), a Delaware limited liability company, and its Successors and Assigns; provided, however, that any Group VI Vehicles manufactured by General Motors Corporation or its affiliates shall be deemed to have been manufactured by General Motors for purposes of this Supplement and the other Related Documents.

 

“Group VI Aggregate Invested Amount” means the sum of the Invested Amounts with respect to all Group VI Series of Notes then outstanding.

 

“Group VI Assignment of Exchange Agreement” means the Collateral Assignment of Exchange Agreement, dated as of June 17, 2010, by and among RCFC, DTG Operations and the Master Collateral Agent pursuant to which each of RCFC and DTG Operations assigns (consistent with the limitations on RCFC’s or DTG Operations’, as the case

 

 

  

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may be, right to receive, pledge, borrow or otherwise obtain the benefits of the Exchange Proceeds contained in the “safe harbor” provisions of Treasury Regulation Section 1.1031(k)-1(g)(6)), all of its right, title and interest in, to and under the Exchange Agreement as it relates to Group VI Vehicles, including any Unused Exchange Proceeds released from an Escrow Account, to the Master Collateral Agent, as the same agreement may be amended, supplemented, restated or otherwise modified from time to time in accordance with its terms.

 

“Group VI Collateral” means the Master Lease and all payments made thereunder, the Group VI Vehicles, any other Group VI Master Collateral, Master Lease Collateral or other Collateral related to Group VI Vehicles, the Group VI Collection Account and all proceeds of the foregoing.

 

“Group VI Collection Account” has the meaning specified in Section 4.6(a) hereof.

 

“Group VI Exchanged Vehicle” means a Group VI Vehicle that is transferred to the Qualified Intermediary in accordance with the “safe harbor” provisions of Treasury Regulation § 1.1031(k)-1(g)(4), and pursuant to the procedures set forth in the Exchange Agreement, and thereby ceases to be a Group VI Vehicle.

 

“Group VI Master Collateral” means all right, title and interest of RCFC or DTG Operations in Group VI Vehicles and proceeds thereof, the other Master Collateral designated or segregated in accordance with the Master Collateral Agency Agreement for the Trustee as Beneficiary on behalf of any Group VI Series of Notes or with respect to Group VI Vehicles and proceeds thereof, the Group VI Assignment of Exchange Agreement, and any other collateral or proceeds pledged to the Master Collateral Agent for the benefit of the Group VI Series of Notes; provided, for the avoidance of doubt, that the Group VI Master Collateral shall not include any QI Group VI Master Collateral, including Exchange Proceeds, until such time as RCFC or DTG Operations, as the case may be, is permitted to receive, pledge, borrow or otherwise obtain the benefits of such Exchange Proceeds consistent with the limitations set forth in the “safe harbor” provisions of Treasury Regulation Section 1.1031(k)-1(g)(6).

 

“Group VI Monthly Servicing Fee” means, on any date of determination, 1/12 of 1% of the Group VI Aggregate Invested Amount as of the preceding Payment Date, after giving effect to any payments or allocations made on such Payment Date; provided, that in accordance with Section 26 of the Master Lease, the Group VI Monthly Servicing Fee shall cease to accrue upon the occurrence of a Servicing Transfer Date; provided, further, that as of any date of determination prior to the initial Payment Date with respect to the Series 2010-2 Notes, the Group VI Monthly Servicing Fee shall be determined based on the Group VI Aggregate Invested Amount as of the Series 2010-2 Funding Date.

 

“Group VI Noteholders” has the meaning specified in Section 3.1(a) hereof.

 

“Group VI Replacement Vehicle” means an Eligible Vehicle designated by the Master Servicer as comprising Group VI Collateral acquired in exchange for a Group VI Exchanged Vehicle in accordance with the terms of the Exchange Agreement and under Section 1031 of the Code and the regulations promulgated thereunder.

 

 

  

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“Group VI Series of Notes” has the meaning specified in Section 1(c) hereof.

 

“Group VI Supplemental Servicing Fee” has the meaning specified in Section 26.1 of the Master Lease.

 

“Group VI Vehicle” means, as of any date, a passenger automobile or light truck leased by RCFC to a Lessee under the Master Lease as of such date pledged by RCFC under the Master Collateral Agency Agreement for the benefit of the Trustee (on behalf of the Group VI Noteholders) and designated in the records of the Master Servicer in accordance therewith as a “Group VI Vehicle” with respect to the Trustee (on behalf of the Group VI Noteholders).

 

“Honda” means American Honda Motor Co., Inc., a California corporation, and its Successors and Assigns.

 

“Hyundai” means Hyundai Motor America Corporation, a California corporation, and its Successors and Assigns.

 

“Increase” has the meaning specified in Section 4A.2(a) of this Supplement.

 

“Increase Date” means the date on which an Increase occurs.

 

“Ineligible Receivable” means any amounts receivable by RCFC or a Lessee from any other Person in connection with the auction, sale or other disposition of a Group VI Vehicle that remains outstanding more than 30 days past the applicable Receivable Due Date for such receivable.

 

“Initial Note Purchaser” means Wells Fargo Bank, N.A.

 

“Insolvency Event Reallocated Amount” means, with respect to any Insolvency Period, the excess, if any, of (a) the Series 2010-2 Minimum Liquidity Amount as of the related Insolvency Period Commencement Date over (b) the sum of (i) Series 2010-2 Letter of Credit Liquidity Amount and (ii) the Series 2010-2 Cash Liquidity Amount, in each case, as of the related Insolvency Period Commencement Date; provided, however, that at no time may the Insolvency Event Reallocated Amount be less than zero.

 

“Insolvency Period” has the meaning specified in Section 4.18(b) hereof.

 

“Insolvency Period Commencement Date” means with respect to any Insolvency Period, the date on which the related Event of Bankruptcy shall have occurred (without giving effect to any grace period set forth in the definition of “Event of Bankruptcy”).

 

“Interest Collections” means, on any date of determination, with respect to the Series 2010-2 Notes, the Series 2010-2 Interest Collections, and with respect to each other Group VI Series of Notes, the amount specified with respect to such Series of Notes in the definition of “Interest Collections” in the applicable Series Supplement.

 

“Interest Reset Date” means the first day of the applicable Series 2010-2 Interest Period.

 

 

  

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“Invested Amount” means, on any date of determination, with respect to the Series 2010-2 Notes, the Series 2010-2 Invested Amount, and with respect to each other Group VI Series of Notes, the amount specified with respect to such Series of Notes in the definition of “Invested Amount” in the applicable Series Supplement.

 

“Invested Percentage” means, on any date of determination, with respect to the Series 2010-2 Notes, the Series 2010-2 Invested Percentage, and with respect to each other Group VI Series of Notes, the amount specified with respect to such Series of Notes in the definition of “Invested Percentage” in the applicable Series Supplement.

 

“Issuer” has the meaning specified in the preamble hereto.

 

“Issuer Change in Control” means RCFC is no longer a direct, Wholly Owned Subsidiary of DTAG.

 

“Isuzu” means Isuzu Motors America Inc., a California corporation, and its Successors and Assigns.

 

“Jaguar” means Jaguar Cars Limited, a division of Tata Motors Ltd. and its Successors and Assigns.

 

“Kia” means Kia Motors America, Inc., a California corporation, and its Successors and Assigns.

 

“Lease Annex” means Annex A or Annex B to the Master Lease, as applicable, as such annex may be amended, supplemented, restated or otherwise modified from time to time in accordance with the terms of the Master Lease.

 

“Lease Commencement Date” has the meaning specified in Section 3.2 of the Master Lease.

 

“Lease Event of Default” has the meaning specified in Section 17.1 of the Master Lease.

 

“Lease Expiration Date” has the meaning specified in Section 3.2 of the Master Lease.

 

“Lease Payment Losses” means, as of any Payment Date, the sum of (a) the amount of payments due from the Lessees under the Master Lease with respect to the Related Month that were not paid by the Lessees or the Guarantor when due (for purposes of calculating Lease Payment Losses, payments made by application of amounts drawn on the Series 2010-2 Letter of Credit or amounts withdrawn from the Series 2010-2 Excess Funding Account shall not be deemed to have been paid when due) and (b) the amount of any payments made by the Lessees or the Guarantor under the Master Lease that were reclaimed, rescinded or otherwise returned during such Related Month and that constituted a voidable preference pursuant to the Bankruptcy Code.

 

 

  

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“Lease Payment Recoveries” means, as of any Payment Date, an amount equal to all payments made by the Lessees or the Guarantor under the Master Lease since the preceding Payment Date on account of past due payments from the Lessees under the Master Lease that had previously been treated as Lease Payment Losses (but excluding for the avoidance of doubt any amounts drawn under any Letter of Credit or withdrawn from the Series 2010-2 Excess Funding Account and any similar amounts applicable with respect to any other Group VI Series of Notes).

 

“Lessee” means DTG Operations in its capacity as a Lessee under the Master Lease, any Additional Lessee, any successor by merger to DTG Operations or any Additional Lessee, in accordance with Section 25.1 of the Master Lease, or any other permitted successor or assignee of DTG Operations, as applicable, in its capacity as Lessee, or of any Additional Lessee, pursuant to Section 16 of the Master Lease.

 

“Lessee Agreements” means any and all Subleases entered into by any of the Lessees the subject of which includes any Vehicle leased by the Lessor to such Lessee under the Master Lease, and any and all other contracts, agreements, guarantees, insurance, warranties, instruments or certificates entered into or delivered to such Lessee in connection therewith.

 

“Lessor” means RCFC, in its capacity as the lessor under the Master Lease, and its successors and assigns in such capacity.

 

“LIBOR” means, with respect to any Series 2010-2 Interest Period (other than the first Series 2010-2 Interest Period, for which LIBOR shall be equal to 0.34969% per annum), the following rate per annum (as determined by the Trustee):

 

(i)           On the second London Banking Day prior to the Interest Reset Date for such Series 2010-2 Interest Period (a “LIBOR Determination Date”), the London interbank offered rate for U.S. Dollar deposits for a period of one month that appears on the Bloomberg Screen which displays the official British Bankers Association listing for such rate as it relates to U.S. Dollars as of 11:00 a.m., London time.  For purposes of calculating “LIBOR”, “London Banking Day” means any Business Day on which dealings in deposits in U.S. Dollars are transacted in the London interbank market.

 

(ii)           If on any LIBOR Determination Date, such rate does not appear on such Bloomberg Screen, the Trustee will request the principal London offices of first class banks in the London interbank market selected by the Trustee and agreed upon by RCFC to provide the Trustee with offered quotations for deposits in U.S. Dollars for a period of one month, commencing on such Interest Reset Date, 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 2010-2 Interest Period will be the arithmetic mean of such quotations.

 

(iii)           If fewer than two such quotations are provided, “LIBOR” for such Series 2010-2 Interest Period will be the arithmetic mean of rates quoted by first class banks in the London interbank market selected by the Trustee at approximately 11:00 a.m., New York City

 

 

  

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time, on such LIBOR Determination Date for loans in U.S. Dollars to leading European banks, for a period of one month, commencing on such Interest Reset Date, and in a principal amount equal to an amount of not less than $250,000 that is representative of a single transaction in the market at such time; provided, however, that if the banks selected as aforesaid by the Trustee are not quoting rates as mentioned in this sentence, “LIBOR” for such Series 2010-2 Interest Period will be the same as “LIBOR” for the immediately preceding Series 2010-2 Interest Period.

 

“Limited Liquidation Event of Default” means, the occurrence and continuance for thirty (30) days (without double counting any cure periods provided for in said Sections) of any Amortization Event specified in Section 5.1 of this Supplement; provided, however, that such Amortization Event shall not constitute a Limited Liquidation Event of Default if, within such thirty (30) day period, the events or conditions causing such Amortization Event shall have been cured or if, at any time, such Amortization Event has been waived pursuant to Section 5.2 of this Supplement.

 

“Liquidation Event of Default” means, so long as such event or condition continues, any of the following:  (a) any Amortization Event under Section 8.1(d) of the Base Indenture, (b) any Amortization Event under Section 8.1(a) or 8.1(b) of the Base Indenture, or (c) any Amortization Event resulting from a Lease Event of Default as specified in Section 8.1(e) of the Base Indenture (with respect solely to the occurrence of the Lease Events of Default pursuant to Sections 17.1.1(i), 17.1.2 and 17.1.5 under the Master Lease).

 

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

 

“LOC Disbursement” means any LOC Credit Disbursement or any LOC Termination Disbursement, or other disbursement by the applicable Series 2010-2 Letter of Credit Provider under the related Series 2010-2 Letter of Credit, or any combination thereof, as the context may require.

 

“LOC Termination Disbursement” means an amount drawn under the Series 2010-2 Letter of Credit pursuant to a Certificate of Termination Demand.  The amount of such LOC Termination Disbursement shall be the amount so drawn or thereafter, if greater, the amount of the deposited funds in the Series 2010-2 Cash Collateral Account.

 

“Losses” means any of the following and, with respect to any Related Month, the sum (without duplication) of the following, in each case, with respect to Acquired Vehicles leased under the Master Lease: (i) all Purchaser Late Payment Losses for such Related Month, plus (ii) with respect to Disposition Proceeds received during the Related Month from the sale or other disposition of Acquired Vehicles, the excess, if any, of (x) the Net Book Values of such Acquired Vehicles calculated on the dates of the respective sales or final dispositions thereof, over (y) (1) the aggregate amount of such Disposition Proceeds received during the Related Month in respect of such Acquired Vehicles by RCFC, the Master Collateral Agent or the Trustee (including by deposit into the Collection Account or the Master Collateral Account) plus (2) any Termination Payments that have accrued with respect to such Acquired Vehicles, plus (iii) the amount of any Disposition Proceeds received previously and constituting a voidable

 

 

  

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preference pursuant to the Bankruptcy Code that were reclaimed, rescinded or otherwise returned during such Related Month.

 

“Mandatory Decrease” has the meaning specified in Section 4A.3(a) of this Supplement.

 

“Market Value” means, with respect to any Vehicle as of any date of determination, the wholesale market value of such Vehicle as specified in the Related Month’s published National Automobile Dealers Association, Official Used Car Guide, Central Edition (the “NADA Guide”) for the model class and model year of such Vehicle based on the average equipment and the average mileage of each Vehicle of such model class and model year.  If such Vehicle is not listed in the NADA Guide published in the Related Month preceding such date of determination, then the Black Book Official Dollar Residual Value Guide (the “Residual Value Guide”) shall be used to estimate the wholesale price of the Vehicle, based on the Vehicle’s model class and model year or the closest model class and model year thereto (if appropriate as determined by the applicable Servicer), for purposes of such months for which the wholesale price of such Vehicle is not so published in the NADA Guide; provided, however, if the NADA Guide was not published in the Related Month, then the Residual Value Guide shall be relied upon in its place, and if the Residual Value Guide is unavailable or the Residual Value Guide is being published but such Vehicle or a reasonably similar model class and model year is not included therein, the Market Value of such Vehicle shall be based upon an independent third-party data source, and determined in accordance with a methodology, in each case as reasonably selected by the applicable Servicer.

 

“Market Value Adjustment Percentage” means, as of any Determination Date following the Series 2010-2 Closing Date, the lower of (i) the lowest Measurement Month Average of any full Measurement Month within the preceding 12 calendar months and (ii) a fraction expressed as a percentage, the numerator of which equals the average of the aggregate Market Value of Vehicles leased under the Master Lease as of the last day of the Related Month and as of the last day of the two Related Months precedent thereto and the denominator of which equals the average of the aggregate Net Book Values of each such Vehicle calculated as of such dates.

 

“Master Collateral Agency Agreement” means the Second Amended and Restated Master Collateral Agency Agreement, dated as of February 14, 2007, among DTAG, as Master Servicer, RCFC, as grantor, the Lessees, as grantors and servicers, such other grantors as may become parties thereto, various Financing Sources parties thereto, various Beneficiaries parties thereto and the Master Collateral Agent, as amended by Amendment No. 1 to Second Amended and Restated Master Collateral Agency Agreement, dated as of June 2, 2009, among DTAG, DTG Operations, RCFC, the Financing Sources and Beneficiaries parties thereto and the Master Collateral Agent, as such agreement may be further amended, supplemented, restated or otherwise modified from time to time in accordance with its terms. 

 

“Master Collateral Agent” means Deutsche Bank Trust Company Americas, a New York banking corporation, in its capacity as master collateral agent under the Master Collateral Agency Agreement, unless a successor Person shall have become the master collateral

 

 

  

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agent pursuant to the applicable provisions of the Master Collateral Agency Agreement, and thereafter “Master Collateral Agent” shall mean such successor Person.

 

“Master Lease” means that certain Master Motor Vehicle Lease and Servicing Agreement (Group VI), dated as of June 17, 2010, among RCFC, as Lessor, DTG Operations, as a Lessee and Servicer, those additional Subsidiaries and Affiliates of DTAG from time to time becoming Lessees and Servicers thereunder and DTAG, as guarantor and Master Servicer, as the same may be amended, supplemented, restated or otherwise modified from time to time in accordance with its terms.

 

“Master Lease Collateral” has the meaning specified in Section 3.1(a) of this Supplement.

 

“Master Servicer” means DTAG, in its capacity as the Master Servicer under the Master Lease, and its successors and assigns in such capacity in accordance with the terms of the Master Lease.

 

“Maximum Lease Commitment” means, on any date of determination, the sum of (i) the Aggregate Principal Balances on such date for all Group VI Series of Notes, plus (ii) with respect to all Group VI Series of Notes that provide for Enhancement in the form of overcollateralization, the sum of the Available Subordinated Amounts on such date for each such Group VI Series of Notes, plus (iii) the aggregate Net Book Values of all Group VI Vehicles leased under the Master Lease on such date that were acquired, financed or refinanced with funds other than proceeds of Group VI Series of Notes or related Available Subordinated Amounts, plus (iv) any amounts held in the Retained Distribution Account that the Lessor commits on or prior to such date to invest in new Group VI Vehicles for leasing under the Master Lease (as evidenced by a Company Order) in accordance with the terms of the Master Lease and the Indenture.

 

“Maximum Manufacturer Percentage” means, with respect to any Eligible Manufacturer, the percentage amount of the Aggregate Asset Amount set forth in Schedule 1 hereto (as such schedule, subject to prior written approval of the Controlling Noteholder, may be amended, supplemented, restated or otherwise modified from time to time) specified for each Eligible Manufacturer with respect to all Vehicles, which percentage amount represents the maximum percentage of Eligible Vehicles that are permitted under the Master Lease to be Vehicles manufactured by such Manufacturer.

 

“Maximum Used Vehicle Percentage” means an amount equal to five percent (5%) of the Aggregate Asset Amount.

 

“Mazda” means Mazda Motor of America, Inc., a California corporation, and its Successors and Assigns.

 

“Measurement Month” means, with respect to any date, a calendar month, or the smallest number of consecutive calendar months, preceding such date in which (a) at least 500 Vehicles that are Group VI Vehicles were sold at auction or otherwise and (b) at least one-eighteenth of the aggregate Net Book Value of the Vehicles that are Group VI Vehicles as of the last day of such calendar month or consecutive calendar months were sold at auction or

 

 

  

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otherwise; provided, that no calendar month included in a Measurement Month shall be included in any other Measurement Month.

 

“Measurement Month Average” means, with respect to Group VI Vehicles and for any Measurement Month, the percentage equivalent of a fraction, the numerator of which is the aggregate amount of Disposition Proceeds of all Vehicles that are Group VI Vehicles sold at auction or otherwise during such Measurement Month and the two Measurement Months preceding such Measurement Month and the denominator of which is the aggregate Net Book Value of such Vehicles that are Group VI Vehicles on the dates of their respective sales.

 

“Mercedes-Benz” means Mercedes-Benz USA, LLC, a Delaware limited liability company, and its Successors and Assigns.

 

“Minimum Available Subordinated Amount” means, on any date of determination, with respect to the Series 2010-2 Notes, the Series 2010-2 Minimum Available Subordinated Amount, and with respect to each other Group VI Series of Notes, the amount specified with respect to such Series of Notes in the definition of “Minimum Available Subordinated Amount” in the applicable Series Supplement.

 

“Minimum Letter of Credit Amount” means, on any date of determination, with respect to the Series 2010-2 Notes, the Series 2010-2 Minimum Letter of Credit Amount, and with respect to each other Group VI Series of Notes, the amount specified with respect to such Series of Notes in the definition of “Minimum Letter of Credit Amount” in the applicable Series Supplement.

 

“Mitsubishi” means Mitsubishi Motor North America, Inc., a Delaware corporation, and its Successors and Assigns.

 

“Monthly Base Rent” has the meaning specified in paragraph 9 of Annex A and paragraph 6 of Annex B to the Master Lease.

 

“Monthly Certificate” has the meaning specified in Section 24.4(b) of the Master Lease.

 

“Monthly Finance Rent” has the meaning specified in paragraph 6 of Annex B to the Master Lease.

 

“Monthly Servicing Fee” has the meaning specified in Section 26.1 of the Master Lease.

 

“Monthly Supplemental Payment” has the meaning specified in paragraph 6 of Annex B to the Master Lease.

 

“Monthly Variable Rent” has the meaning specified in paragraph 9 of Annex A to the Master Lease.

 

“Monthly Vehicle Statement” has the meaning specified in Section 24.4(f) of the Master Lease.

 

 

  

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

 

“Moody’s Required Ratings” means, with respect to any entity, rating requirements which are satisfied where the long-term unsecured debt obligations of such entity are rated at least “A2” by Moody’s and the short-term debt obligations of such entity are rated at least “P-1” by Moody’s.

 

“Nissan” means Nissan Motor Corporation U.S.A., a California corporation, and its Successors and Assigns.

 

“Non-Program Vehicle” means a Vehicle which at the time it becomes a Group VI Vehicle is not subject to inclusion in any Vehicle Disposition Program.

 

“Note Purchaser” means each Series 2010-2 Noteholder in its capacity as purchaser of a Series 2010-2 Note pursuant to the Series 2010-2 Note Purchase Agreement, and as registered Holder thereof.

 

“Officer’s Certificate” means a certificate signed by an Authorized Officer of DTAG, RCFC or a Lessee, as applicable.

 

“Old Chrysler” means Chrysler LLC.

 

“Old GM” means General Motors Corporation.

 

“Operating Lease” means the Master Lease as supplemented by Annex A to the Master Lease.

 

“Opinion of Counsel” means a written opinion from legal counsel who is reasonably acceptable to the Trustee.  The counsel may be an employee of or counsel to DTAG, RCFC or a Lessee, as the case may be, unless the Series 2010-2 Required Noteholders shall notify the Trustee of objection thereto.

 

“Payment Date” means the 25th day of each calendar month, commencing July 25, 2010, or, if any such day is not a Business Day, the next succeeding Business Day.

 

“Permitted Change in Control Counterparty” means (i) Hertz Global Holdings, Inc. and/or any of its wholly owned Subsidiaries, or (ii) any other Person that (a) is entering into any merger, acquisition or business combination transaction with DTAG that will result in a Change in Control and (b) has been approved by the Controlling Noteholder in its sole discretion in connection with such merger, acquisition or business combination with DTAG.

 

“Permitted Change in Control Counterparty Financial Covenant” means any financial covenant applicable to a Permitted Change in Control Counterparty that the Issuer and the Controlling Noteholder have, pursuant to Section 8.10, agreed shall constitute a “Permitted Change in Control Counterparty Financial Covenant”.

 

 

  

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“Permitted Change in Control Transaction” means the consummation of any merger, acquisition or business combination transaction between DTAG and a Permitted Change in Control Counterparty that results in a Change in Control.

 

“Permitted Investments” means negotiable instruments or securities maturing on or before the Payment Date next occurring after the investment therein, represented by instruments in bearer, registered or book-entry form which evidence (i) obligations the full and timely payment of which are to be made by or are fully guaranteed by the United States of America; (ii) demand deposits of, time deposits in, or certificates of deposit issued by, any depositary institution or trust company incorporated under the laws of the United States of America or any state thereof and subject to supervision and examination by Federal or state banking or depositary institution authorities; provided, however, that at the earlier of (x) the time of the investment and (y) the time of the contractual commitment to invest therein, the certificates of deposit or short-term deposits, if any, or long-term unsecured debt obligations (other than such obligations whose rating is based on collateral or on the credit of a Person other than such institution or trust company) of such depositary institution or trust company shall have a credit rating from Moody’s of “P-1” or from Standard & Poor’s of “A-1+” in the case of certificates of deposit or short-term deposits, or a rating from Moody’s of at least “Aaa” or from Standard & Poor’s of at least “AAA”, in the case of long-term unsecured debt obligations; (iii) commercial paper having, at the earlier of (x) the time of the investment and (y) the time of contractual commitment to invest therein, a rating from Moody’s of “P-1” or from Standard & Poor’s of “A-1+”; (iv) demand deposits or time deposits which are fully insured by the Federal Deposit Insurance Corporation; (v) bankers’ acceptances which are U.S. Dollar denominated issued by any depositary institution or trust company described in clause (ii) above; (vi) investments in money market funds rated at least “Aaa” by Moody’s or at least “AAAm” by Standard & Poor’s; (vii) Eurodollar time deposits having a credit rating from Moody’s of “P-1” or from Standard & Poor’s of “A-1+”; and (viii) any other instruments or securities approved by the Controlling Noteholder.

 

“Permitted Lessee” has the meaning specified in Section 28 of the Master Lease.

 

“Permitted Liens” has the meaning specified in Section 25.3 of the Master Lease.

 

“Permitted Principal Draw Amount” means, with respect to any date during an Insolvency Period, the excess, if any, of (i) the excess of the Series 2010-2 Letter of Credit Liquidity Amount as of the related Insolvency Period Commencement Date over the excess of (x) the Series 2010-2 Minimum Liquidity Amount over (y) the Series 2010-2 Cash Liquidity Amount, in each case, as of such Insolvency Period Commencement Date over (ii) the Accumulated Principal Draw Amount as of such date during such Insolvency Period; provided, however, that, notwithstanding the foregoing, on any date on and after the Series 2010-2 Final Maturity Date or any date prior to the Series 2010-2 Final Maturity Date but during the Series 2010-2 Rapid Amortization Period if requested by the Controlling Noteholder by written notice to the Trustee and the Issuer, the “Permitted Principal Draw Amount” shall be equal to the Series 2010-2 Letter of Credit Liquidity Amount as of such date.

 

“Person” means any natural person, corporation, limited liability company, partnership, joint venture, joint stock company, firm, association, trust or unincorporated organization, government, governmental agency, court or any other legal entity, whether acting in an individual, fiduciary or other capacity.

 

 

  

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“Power of Attorney” has the meaning specified in Section 9 of the Master Lease.

 

“Principal Collections” means Collections other than Interest Collections.

 

“Program Vehicle” means, at any time, a Vehicle that is eligible and included under a Vehicle Disposition Program at such time.

 

“Pro Rata Share” means, with respect to a Lessee or a Servicer, the ratio (expressed as a percentage) of (i) the aggregate Net Book Value of Vehicles subject to the Master Lease leased by such Lessee under the Master Lease or serviced by such Servicer under the Master Lease, as applicable, divided by (ii) the aggregate Net Book Value of all Vehicles leased under the Master Lease.

 

“Purchaser Late Payment Losses” means, with respect to any Related Month, all payments required to be made to RCFC by any Person (other than, for the avoidance of doubt, any Lessee unless such Lessee is the purchaser of the related Vehicle) in connection with the sale or other final disposition of Acquired Vehicles that are Group VI Vehicles, which payments are not made sixty (60) days after such payments are due and remain unpaid at the end of such Related Month, provided that such sixty (60) day periods expire during such Related Month.

 

“QI Group VI Master Collateral” means (i) any Master Collateral Vehicle (as defined in the Master Collateral Agency Agreement) that is a Group VI Exchanged Vehicle, (ii) any funds in the Master Collateral Account that are proceeds of any Group VI Exchanged Vehicle, (iii) any receivables in respect of disposition of any Group VI Exchanged Vehicle and (iv) any other collateral relating to Group VI and pledged to the Master Collateral Agent that is designated on the Master Servicer’s computer system as related Master Collateral (as defined in the Master Collateral Agency Agreement) for the Qualified Intermediary as Beneficiary in accordance with the Master Collateral Agency Agreement.

 

“Qualified Institution” means a depositary institution or trust company (which may include the Trustee) organized under the laws of the United States of America or any one of the states thereof or the District of Columbia; provided, however, that at all times such depositary institution or trust company is a member of the Federal Deposit Insurance Corporation and (i) has a long-term indebtedness rating from Moody’s not lower than “Aa3” and/or from Standard & Poor’s of not lower than “A” and a short-term indebtedness rating from Moody’s of not lower than “P-1” and/or from Standard & Poor’s of not lower than “A-1” or (ii) has such other rating that has been approved by the Controlling Noteholder.

 

“Qualified Interest Rate Cap Counterparty” means a counterparty to a Series 2010-2 Interest Rate Cap that is a bank, other financial institution or Person which satisfies the Moody’s Required Ratings and the Standard & Poor’s Required Ratings (or whose present and future obligations under its Series 2010-2 Interest Rate Cap are guaranteed pursuant to a guarantee (in form and substance satisfactory to the Controlling Noteholder) provided by a guarantor which satisfies the Moody’s Required Ratings and the Standard & Poor’s Required Ratings).

 

“Qualified Intermediary” has the meaning specified in the Master Collateral Agency Agreement.

 

 

  

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“Rating Agency Condition” means, with respect to any action (including with respect to the issuance of a new Group VI Series of Notes), the prior written consent of the Controlling Noteholder.

 

“RCFC” has the meaning specified in the preamble.

 

“RCFC Agreements” has the meaning specified in Section 3.1(a)(i) of this Supplement.

 

“RCFC Obligations” means all principal and interest, at any time and from time to time, owing by RCFC on the Series 2010-2 Notes and all costs, fees and expenses payable by, or obligations of, RCFC under the Indenture and the Related Documents, in each case, in respect of the Series 2010-2 Notes.

 

“Receivable Due Date” means, with respect to any payment due to RCFC or a Lessee from any other Person in connection with the auction, sale or other disposition of Group VI Vehicles, the thirtieth (30th) day after the Disposition Date for such Group VI Vehicle.

 

“Recoveries” means, with respect to any Related Month, the sum (without duplication) of (i) all amounts received by RCFC, the Master Collateral Agent or the Trustee (including by deposit into the Group VI Collection Account or the Master Collateral Account, in respect of Group VI Master Collateral) from any Person during such Related Month in respect of amounts that had previously been treated as Losses (but excluding for the avoidance of doubt any amounts drawn under the Series 2010-2 Letter of Credit or withdrawn from the Series 2010-2 Excess Funding Account and any similar amounts applicable with respect to any other Group VI Series of Notes), plus (ii) the excess, if any, of (x) the aggregate amount of Disposition Proceeds received during such Related Month by RCFC, the Master Collateral Agent or the Trustee (including by deposit into the Group VI Collection Account or the Master Collateral Account in respect of Group VI Master Collateral) resulting from the sale or other final disposition of Acquired Vehicles that are Group VI Vehicles, plus any Termination Payments that have accrued with respect to such Acquired Vehicles that are Group VI Vehicles, over (y) the Net Book Values of such Acquired Vehicles that are Group VI Vehicles, calculated on the dates of the respective sales or dispositions thereof.

 

“Refinanced Vehicles” has the meaning specified in Section 2.1 of the Master Lease.

 

“Refinancing Schedule” has the meaning specified in Section 2.1 of the Master Lease.

 

“Related Documents” means, collectively, the Indenture, the Series 2010-2 Notes, any Enhancement Agreement with respect to the Series 2010-2 Notes, the Master Lease, the Master Collateral Agency Agreement (to the extent relating to Group VI Collateral), and any grantor supplements and financing source and beneficiary supplements thereto involving the Trustee as Beneficiary with respect to Group VI Collateral, the Series 2010-2 Note Purchase Agreement, the Group VI Assignment of Exchange Agreement, the Series 2010-2 Interest Rate Cap and any Series 2010-2 Letter of Credit.

 

 

  

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“Related Month” means, with respect to any Determination Date, Due Date, Payment Date or other date of determination, the period from and including the first day of the calendar month preceding the month in which such date falls, to and including the last day of such calendar month; provided, however, the initial Related Month means the period from and including the Series 2010-2 Closing Date to and including June 30, 2010.

 

“Rent”, with respect to each Acquired Vehicle and each Financed Vehicle, has the meaning specified in paragraph 9 of Annex A to the Master Lease and in paragraph 6 of Annex B to the Master Lease, respectively.

 

“Required Asset Amount” means with respect to the Series 2010-2 Notes, at any date of determination, the sum of (i) the Invested Amounts for all Group VI Series of Notes that do not provide for Enhancement in the form of overcollateralization plus (ii) with respect to all Group VI Series of Notes that provide for Enhancement in the form of overcollateralization, the sum of (a) the Invested Amount for all such Series of Notes, plus (b) the Minimum Available Subordinated Amounts required to be maintained as part of the enhancement for all such Series of Notes.

 

“Required Beneficiaries” means Noteholders holding in excess of 66 2/3% of the Group VI Aggregate Invested Amount (excluding, for the purposes of making the foregoing calculation, any Notes held by DTAG or any Affiliate of DTAG).

 

“Responsible Officer” means, with respect to RCFC, a Servicer, a Lessee or the Master Servicer, any President, Vice President, Assistant Vice President, Treasurer or Assistant Treasurer, or any officer performing functions similar to those customarily performed by the person who at the time shall be such officer.

 

“Retained Interest Amount” means, on any date of determination, the amount, if any, by which the Aggregate Asset Amount at the end of the day immediately prior to such date of determination, exceeds the Required Asset Amount at the end of such day.

 

“Retained Interest Percentage” means, on any date of determination, when used with respect to Principal Collections, Recoveries, Lease Payment Recoveries, Losses, Lease Payment Losses and other amounts, an amount equal to one hundred percent (100%) minus the sum of the Invested Percentages for all outstanding Group VI Series of Notes, in each case as such Invested Percentages are calculated on such date with respect to Principal Collections, Recoveries, Lease Payment Recoveries, Losses, Lease Payment Losses and other amounts, as applicable.

 

“Retained Interestholder” means DTAG as owner of all outstanding capital stock of RCFC or any permitted successor or assign.

 

“Series 2010-2 Accrued Interest Account” has the meaning specified in Section 4.6(b) of this Supplement.

 

“Series 2010-2 Accrued Interest Amount” means, with respect to any Payment Date, the aggregate for all Series 2010-2 Notes Outstanding of (a) the sum of the Daily Interest Amounts with respect to each such Series 2010-2 Note for each day in the Series 2010-2 Interest

 

 

  

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Period ending on the immediately preceding Determination Date, plus (b) all previously accrued Series 2010-2 Accrued Interest Amounts with respect to each such Series 2010-2 Note not paid on any previous Payment Date (together with interest on such unpaid amounts at the applicable Series 2010-2 Note Rate), plus (c) any Carrying Charges accruing with respect to each related Series 2010-2 Noteholder during the Series 2010-2 Interest Period and due as of such Payment Date (without duplication of amounts included in clause (b) hereof).

 

“Series 2010-2 Available Subordinated Amount” means, for any date of determination, an amount equal to (a) the Series 2010-2 Available Subordinated Amount for the preceding Determination Date (or, in the case of any date of determination on or prior to the initial Determination Date following the Series 2010-2 Closing Date, the Series 2010-2 Closing Date), minus (b) the Series 2010-2 Available Subordinated Amount Incremental Losses for the Related Month, plus (c) the Series 2010-2 Available Subordinated Amount Incremental Recoveries for the Related Month, minus (d) the Series 2010-2 Lease Payment Losses allocable to the Series 2010-2 Available Subordinated Amount pursuant to Section 4.7 of this Supplement since the preceding Determination Date (or the Series 2010-2 Closing Date, as the case may be), plus (e) the Series 2010-2 Lease Payment Recoveries allocable to the Series 2010-2 Available Subordinated Amount pursuant to Section 4.7 of this Supplement since the preceding Determination Date (or the Series 2010-2 Closing Date, as the case may be), plus (f) additional amounts, if any, contributed by RCFC since the preceding Determination Date (or the Series 2010-2 Closing Date, as the case may be) to the Series 2010-2 Excess Funding Account for allocation to the Series 2010-2 Available Subordinated Amount, plus (g) the aggregate Net Book Value of additional Eligible Vehicles contributed by the Retained Interestholder since the preceding Determination Date (or the Series 2010-2 Closing Date, as the case may be) as Group VI Master Collateral for allocation to the Series 2010-2 Available Subordinated Amount pursuant to the Indenture, minus (h) any amounts withdrawn from the Series 2010-2 Excess Funding Account since the preceding Determination Date (or the Series 2010-2 Closing Date, as the case may be) for allocation to the Retained Distribution Account.  The “Series 2010-2 Available Subordinated Amount” for the Series 2010-2 Closing Date shall be $0.

 

“Series 2010-2 Available Subordinated Amount Incremental Losses” means, for any Related Month, the sum of all Losses that became Losses during such Related Month and which were allocated to the Series 2010-2 Available Subordinated Amount pursuant to Section 4.7 of this Supplement.

 

“Series 2010-2 Available Subordinated Amount Incremental Recoveries” means, for any Related Month, the sum of all Recoveries that became Recoveries during such Related Month and which were allocated to the Series 2010-2 Available Subordinated Amount pursuant to Section 4.7 of this Supplement.

 

“Series 2010-2 Cash Collateral Account” has the meaning specified in Section 4.16(a) of this Supplement.

 

“Series 2010-2 Cash Collateral Account Surplus” means, as of any date of determination subsequent to the establishment and funding of the Series 2010-2 Cash Collateral Account pursuant to Section 4.17(a) of this Supplement, the amount, if any, by which (a) the

 

 

  

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Series 2010-2 Letter of Credit Amount exceeds (b) the Series 2010-2 Minimum Letter of Credit Amount.

 

“Series 2010-2 Cash Liquidity Account” has the meaning specified in Section 4.6(a) of this Supplement.

 

“Series 2010-2 Cash Liquidity Amount” means, as of any date of determination, the amount of funds, if any, set aside by RCFC in the Series 2010-2 Excess Funding Account as all or a portion of the Series 2010-2 Minimum Liquidity Amount as of such date.

 

“Series 2010-2 Closing Date” means June 17, 2010.

 

“Series 2010-2 Collection Account” has the meaning specified in Section 4.6(a) of this Supplement.

 

“Series 2010-2 Controlled Amortization Amount” means, for each Payment Date during the Series 2010-2 Controlled Amortization Period, beginning with the second such Payment Date, an amount equal to the lesser of (a) the product of (i) 1/6 and (ii) the Series 2010-2 Invested Amount as of the commencement of the Series 2010-2 Controlled Amortization Period) and (b) the Series 2010-2 Invested Amount as of such Payment Date; provided that on the Series 2010-2 Expected Final Payment Date, the Series 2010-2 Controlled Amortization Amount shall equal the Series 2010-2 Invested Amount.

 

“Series 2010-2 Controlled Amortization Period” means the period commencing on June 1, 2013 and ending on the earliest to occur of (i) the date on which the Series 2010-2 Notes are fully paid, (ii) the Series 2010-2 Expected Final Payment Date, (iii) the termination of the Base Indenture in accordance with its terms and (iv) the commencement of the Series 2010-2 Rapid Amortization Period; provided, that the Series 2010-2 Controlled Amortization Period shall be deemed not to commence or be continuing at any time that the Series 2010-2 Rapid Amortization Period has commenced and is continuing.

 

“Series 2010-2 Controlled Distribution Amount Deficiency” has the meaning specified in Section 4.10(a)(i) of this Supplement.

 

“Series 2010-2 Deposit Date” has the meaning specified in Section 4.7 of this Supplement.

 

“Series 2010-2 Distribution Account” has the meaning specified in Section 4.12(a) of this Supplement.

 

“Series 2010-2 Distribution Account Collateral” has the meaning specified in Section 4.12(d) of this Supplement.

 

“Series 2010-2 Enhancement Amount” means, as of any date of determination, the sum, without duplication, of (a) the Series 2010-2 Available Subordinated Amount as of such date, plus (b) the Series 2010-2 Letter of Credit Amount, if any, as of such date, plus (c) the Series 2010-2 Cash Liquidity Amount, if any, as of such date.

 

 

  

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“Series 2010-2 Enhancement Deficiency” means, with respect to any date of determination, the amount, if any, by which the Series 2010-2 Enhancement Amount is less than the Series 2010-2 Minimum Enhancement Amount for such day.

 

“Series 2010-2 Excess Funding Account” has the meaning specified in Section 4.6(a) of this Supplement.

 

“Series 2010-2 Expected Final Payment Date” means the December 2013 Payment Date.

 

“Series 2010-2 Final Maturity Date” means the December 2014 Payment Date.

 

“Series 2010-2 Funding Date” means the date on which the initial Increase is funded.

 

“Series 2010-2 Initial Invested Amount” means the aggregate initial principal amount of the Series 2010-2 Notes, which is $0.

 

“Series 2010-2 Interest Amount” means, with respect to any Payment Date, the sum, without duplication, of (i) the Series 2010-2 Accrued Interest Amount with respect to such Payment Date, and (ii) any Carrying Charges due with respect to the Series 2010-2 Notes and unpaid as of such Payment Date.

 

“Series 2010-2 Interest Collections” means on any date of determination, all Collections in the Group VI Collection Account which represent Monthly Variable Rent, Monthly Finance Rent or the Availability Payment accrued under any Lease related to Group VI Vehicles with respect to the Series 2010-2 Notes, plus the Series 2010-2 Invested Percentage of any amount earned on Permitted Investments in the Master Collateral Account that constitute Group VI Collateral, together with any amount earned on Permitted Investments in the Series 2010-2 Collection Account and which are available for distribution on such date.

 

“Series 2010-2 Interest Period” means a period from and including a Determination Date to but excluding the next succeeding Determination Date; provided, however, that the initial Series 2010-2 Interest Period shall be from and including the Series 2010-2 Closing Date to but excluding the initial Determination Date.

 

“Series 2010-2 Interest Rate Cap” has the meaning specified in Section 4.19(a).

 

“Series 2010-2 Interest Rate Cap Counterparty” means RCFC’s counterparty under a Series 2010-2 Interest Rate Cap.

 

“Series 2010-2 Interest Rate Cap Proceeds” means the amounts received by the Trustee from a Series 2010-2 Interest Rate Cap Counterparty from time to time in respect of a Series 2010-2 Interest Rate Cap (including amounts received from a guarantor and, to the extent provided in Section 4.19, from collateral).

 

“Series 2010-2 Invested Amount” means, on any date of determination, an amount equal to (a) the Series 2010-2 Initial Invested Amount, minus (b) the amount of principal

 

 

  

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payments made to Series 2010-2 Noteholders and Decreases allocated to the Series 2010-2 Noteholders on or prior to such date, plus (c) all Increases allocated to the Series 2010-2 Noteholders on or prior to such date.

 

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

 

(i)           when used with respect to Principal Collections during the Series 2010-2 Revolving Period, and when used with respect to Losses, Lease Payment Losses, Recoveries, Lease Payment Recoveries, cash on deposit in the Master Collateral Account and the Collection Account and other amounts at all times, the percentage equivalent of a fraction, the numerator of which shall be an amount equal to the sum of (x) the Series 2010-2 Invested Amount and (y) the Series 2010-2 Available Subordinated Amount, in each case as of the end of the second preceding Related Month or, until the end of the second Related Month after the Series 2010-2 Funding Date, as of the Series 2010-2 Funding Date, and the denominator of which shall be the greater of (A) the Aggregate Asset Amount as of the end of the second preceding Related Month or, until the end of the second Related Month after the Series 2010-2 Funding Date, as of the Series 2010-2 Funding Date, and (B) as of the same date as in clause (A), the sum of the numerators used to determine the Invested Percentages for allocations with respect to Principal Collections (for all Group VI Series of Notes including all classes of such Series of Notes); and

 

(ii)           when used with respect to Principal Collections during the Series 2010-2 Controlled Amortization Period or the Series 2010-2 Rapid Amortization Period, the percentage equivalent of a fraction, the numerator of which shall be an amount equal to the sum of (x) the Series 2010-2 Invested Amount and (y) the Series 2010-2 Available Subordinated Amount, in each case as of the end of the Series 2010-2 Revolving Period, and the denominator of which shall be the greater of (A) the Aggregate Asset Amount as of the end of the second preceding Related Month, and (B) as of the same date as in clause (A), the sum of the numerators used to determine the Invested Percentages for allocations with respect to Principal Collections (for all Group VI Series of Notes including all classes of such Series of Notes).

 

“Series 2010-2 Lease Payment Losses” means, as of any Payment Date, an amount equal to the Series 2010-2 Invested Percentage (determined as of such date) of Lease Payment Losses as of such date.

 

“Series 2010-2 Lease Payment Recoveries” means, for any Payment Date, the Series 2010-2 Invested Percentage (determined as of such date) of all Lease Payment Recoveries as of such date.

 

“Series 2010-2 Letter of Credit” means any irrevocable letter of credit, issued by the Series 2010-2 Letter of Credit Provider in favor of the Trustee for the benefit of the Series 2010-2 Noteholders meeting the requirements of this Supplement and the Master Lease, including without limitation, the execution and delivery of a collateral sharing agreement with respect to the Master Collateral Agency Agreement.  There shall be no Series 2010-2 Letter of Credit in place as of the Series 2010-2 Closing Date.

 

 

  

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“Series 2010-2 Letter of Credit Amount” means, as of any date of determination, the lesser of (a) the amount (i) available to be drawn on such date under the Series 2010-2 Letter of Credit, as specified therein or (ii) if the Series 2010-2 Cash Collateral Account has been established and funded pursuant to Section 4.17, the amount on deposit in the Series 2010-2 Cash Collateral Account on such date, and (b) the outstanding principal amount of the Demand Note on such date. The Series 2010-2 Letter of Credit Amount on the Series 2010-2 Closing Date shall be zero.

 

“Series 2010-2 Letter of Credit Expiration Date” means the date a Series 2010-2 Letter of Credit expires as specified in the applicable Series 2010-2 Letter of Credit, as such date may be extended in accordance with the terms of the applicable Series 2010-2 Letter of Credit.

 

“Series 2010-2 Letter of Credit Liquidity Amount” means, as of any date of determination, the amount (a) available to be drawn on such date under the Series 2010-2 Letter of Credit, as specified therein or (b) if the Series 2010-2 Cash Collateral Account has been established and funded pursuant to Section 4.17, the amount on deposit in the Series 2010-2 Cash Collateral Account on such date.  The Series 2010-2 Letter of Credit Liquidity Amount on the Series 2010-2 Closing Date shall be zero.

 

“Series 2010-2 Letter of Credit Provider” means Deutsche Bank Trust Company Americas, a New York banking corporation, or an institution approved by the Controlling Noteholder to provide a Series 2010-2 Letter of Credit in accordance with the terms of this Supplement and the Master Lease.

 

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

 

“Series 2010-2 Maximum Invested Amount” has the meaning specified in Section 4A.1 of this Supplement.

 

“Series 2010-2 Minimum Available Subordinated Amount” means, with respect to any date of determination, an amount equal to (i) the Series 2010-2 Minimum Enhancement Amount, minus (ii) the sum of (x) the Series 2010-2 Letter of Credit Amount, if any, as of such date and (y) the Series 2010-2 Cash Liquidity Amount, if any, on such date.

 

“Series 2010-2 Minimum Enhancement Amount” means, with respect to the Series 2010-2 Notes on any date of determination, the product of (i) the Series 2010-2 Required Enhancement Percentage, times (ii) the excess, if any, of the Series 2010-2 Invested Amount over the product of (A) the aggregate amount of cash and Permitted Investments in the Group VI Collection Account, the Exchange Agreement Group VI Rights Value (to the extent of any value attributable to amounts on deposit in an Escrow Account) and, to the extent cash and Permitted Investments in the Master Collateral Account are allocable to the Trustee on behalf of the holders of the Group VI Series of Notes as Beneficiary pursuant to the Master Collateral Agency Agreement, such cash and Permitted Investments in the Master Collateral Account as of such date, in each case to the extent such cash and Permitted Investments constitute Group VI Collateral, times (B) the Series 2010-2 Invested Percentage as of such date.

 

 

  

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“Series 2010-2 Minimum Letter of Credit Amount” means, with respect to any date of determination, the greatest of (i) zero, (ii) an amount equal to (x) the Series 2010-2 Minimum Liquidity Amount minus (y) the sum of (1) any cash on deposit in the Series 2010-2 Cash Collateral Account on such date, (2) the Series 2010-2 Cash Liquidity Amount, if any, on such date and (3) the excess, if any, of the Series 2010-2 Letter of Credit Liquidity Amount over the Series 2010-2 Letter of Credit Amount on such date, and (iii) an amount equal to (x) the Series 2010-2 Minimum Enhancement Amount on such date, minus (y) the sum of (1) the Series 2010-2 Available Subordinated Amount on such date and (2) the Series 2010-2 Cash Liquidity Amount, if any, on such date.  Prior to obtaining a Series 2010-2 Letter of Credit in accordance with the terms of this Supplement and the Master Lease after the Series 2010-2 Closing Date, the Series 2010-2 Minimum Letter of Credit Amount shall be zero.

 

“Series 2010-2 Minimum Liquidity Amount” means, as of any date of determination, an amount equal to 5.00% of the Series 2010-2 Invested Amount of the Series 2010-2 Notes as of such date.

 

“Series 2010-2 Minimum Subordinated Amount” means, with respect to any date of determination, the greater of (a) 2.25% of the Series 2010-2 Invested Amount on such date and (b) an amount equal to (i) the Series 2010-2 Minimum Enhancement Amount, minus (ii) the sum of (x) the Series 2010-2 Letter of Credit Amount, if any, as of such date and (y) the Series 2010-2 Cash Liquidity Amount, if any, on such date.

 

“Series 2010-2 Monthly Interest Shortfall” means, as of any Payment Date, the excess, if any, of (i) the Series 2010-2 Interest Amount for such date, over (ii) the amount on deposit in the Series 2010-2 Distribution Account for the payment of the Series 2010-2 Interest Amount on such Payment Date after making all allocations, deposits and claims under available Enhancement (other than, for the avoidance of doubt, the Series 2010-2 Cash Liquidity Account) for such Payment Date.

 

“Series 2010-2 Monthly Servicing Fee” means the Series 2010-2 Invested Percentage of the Group VI Monthly Servicing Fee.

 

“Series 2010-2 Monthly Supplemental Servicing Fee” means the Series 2010-2 Invested Percentage of the Group VI Supplemental Servicing Fee.

 

“Series 2010-2 Note Purchase Agreement” means the Note Purchase Agreement, dated as of June 17, 2010, among RCFC, DTAG, the Initial Note Purchaser and each other Note Purchaser from time to time party thereto, pursuant to which the Note Purchasers agree to purchase the Series 2010-2 Notes from RCFC and from time to time fund Increases in respect of the Series 2010-2 Invested Amount of such Series 2010-2 Notes, subject to the terms and conditions set forth therein, or any successor agreement to such effect among RCFC, DTAG and each Series 2010-2 Noteholder, in any case as such agreement may be amended, restated, supplemented or otherwise modified from time to time in accordance with the terms thereof.

 

“Series 2010-2 Note Rate” means, for a Series 2010-2 Interest Period and for each Series 2010-2 Note, the rate, expressed as a percentage, resulting from (a) the aggregate of the Daily Interest Amounts with respect to such Series 2010-2 Note for each day in such Series

 

 

  

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2010-2 Interest Period, divided by (b) the portion of the Series 2010-2 Invested Amount represented by the weighted average outstanding principal amount of such Series 2010-2 Note during such Series 2010-2 Interest Period; provided, that the Series 2010-2 Note Rate shall in no event be higher than the maximum rate permitted by applicable law.

 

“Series 2010-2 Noteholders” means, collectively, the registered Holders of the Series 2010-2 Notes.

 

“Series 2010-2 Notes” means any one of the Rental Car Asset Backed Variable Funding Notes, Series 2010-2, executed by RCFC and authenticated and delivered by or on behalf of the Trustee, substantially in the form of Exhibit A attached hereto.

 

 “Series 2010-2 Principal Allocation” has the meaning specified in Section 4.7(a)(i)(B) of this Supplement.

 

“Series 2010-2 Rapid Amortization Period” means the period beginning at the close of business on the Business Day immediately preceding the day on which an Amortization Event is deemed to have occurred with respect to the Series 2010-2 Notes and ending upon the earlier to occur of (i) the date on which the Series 2010-2 Notes are paid in full and (ii) the termination of the Indenture in accordance with its terms.

 

“Series 2010-2 Required Enhancement Percentage” means, with respect to any date of determination, the sum of (a) the greater of (i) a percentage equal to (x) 100% minus (y) a percentage equal to (A) the Market Value Adjustment Percentage as of the most recent Determination Date (or such date if such date is a Determination Date), minus (B) 55% or such lower percentage that is approved in writing by the Series 2010-2 Required Noteholders, and (ii) 55% or such lower percentage that is approved in writing by the Series 2010-2 Required Noteholders and (b) the Third-Party Market Value Adjustment Percentage, if any, as of the most recent Third-Party Market Value Determination Date (or, if such date is prior to the last day of the Related Month in which such most recent Third-Party Market Value Determination Date occurs, the immediately preceding Third-Party Market Value Determination Date).

 

“Series 2010-2 Required Noteholders” means Series 2010-2 Noteholders holding at least 66 2/3% of the Aggregate Invested Amount of all Outstanding Series 2010-2 Notes (excluding, for the purposes of making the foregoing calculation, (i) any Notes held by DTAG or any Affiliate of DTAG and (ii) solely for purposes of declaring an Amortization Event under Section 5.1(i) hereof, any Series 2010-2 Notes held by a Series 2010-2 Interest Rate Cap Counterparty and/or any of its Affiliates if such Series 2010-2 Interest Rate Cap Counterparty has failed to pay any termination payment due and payable by such Series 2010-2 Interest Rate Cap Counterparty in accordance with the terms of such Series 2010-2 Interest Rate Cap).

 

“Series 2010-2 Revolving Period” means the period from and including the Series 2010-2 Closing Date to the earlier of (i) the commencement of the Series 2010-2 Controlled Amortization Period and (ii) the commencement (if any) of the Series 2010-2 Rapid Amortization Period.

 

“Servicer” means DTG Operations or any Additional Lessee, as applicable, in its capacity as a servicer under the Master Lease and any successor servicer thereunder.

 

 

  

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“Servicer Default” has the meaning specified in Section 17.7 of the Master Lease.

 

“Servicer Event of Default” means (a) prior to a Permitted Change in Control Transaction, (i) a Servicer Tangible Net Worth Event of Default or (ii) a Servicer Unrestricted Cash Event of Default and (b) upon and after the effective date of any amendment to this Supplement pursuant to Section 8.5(b)(iii), a Servicer Financial Covenant Event of Default.

 

“Servicer Financial Covenant Event of Default” means a breach by a Permitted Change in Control Counterparty of any Permitted Change in Control Counterparty Financial Covenant.

 

“Servicer Tangible Net Worth Event of Default” means that, at any time prior to a Permitted Change in Control Transaction, the Tangible Net Worth of the Master Servicer and its Subsidiaries is less than $150,000,000.

 

“Servicer Unrestricted Cash Event of Default” means, at any time prior to a Permitted Change in Control Transaction, a failure by the Master Servicer to maintain at least $100,000,000 in the aggregate of Unrestricted Cash and Cash Equivalent Investments (each such term as defined in the Credit Agreement, as in effect on the date hereof; provided, that clause (ii) of the definition of “Unrestricted Cash” shall be deemed to refer to secured parties as defined in or permitted under the Credit Agreement or any replacement credit facility) in one or more deposit and/or securities accounts of the Master Servicer.

 

“Servicing Transfer Date”, with respect to the Group VI Series of Notes, has the meaning specified in Section 3.01 of the Back-Up Servicing Agreement.

 

“Standard & Poor’s” means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business.

 

“Standard & Poor’s Required Ratings” means, with respect to any entity, rating requirements which are satisfied where the long-term unsecured debt obligations of such entity are rated at least “A” by Standard & Poor’s and the short-term debt obligations of such entity are rated at least “A-1” by Standard & Poor’s.

 

“Subaru” means Subaru of America, Inc., a New Jersey corporation, and its Successors and Assigns.

 

“Sublease” means a standardized lease agreement, for the leasing of Vehicles, between a Lessee, as lessor, and an Eligible Franchisee, as lessee.

 

“Substitute Group VI Exchanged Vehicle Proceeds” means funds, in the amount of the Net Book Value of Group VI Exchanged Vehicles, transferred by RCFC, at the direction of the Master Servicer, from (i) the Substitute Group VI Exchanged Vehicle Proceeds Amount, (ii) the Retained Distribution Account or (iii) RCFC’s capital, and deposited into the Group VI Collection Account to be treated as Disposition Proceeds of such Group VI Exchanged Vehicles.

 

 

  

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“Substitute Group VI Exchanged Vehicle Proceeds Amount” means, at any time, funds, if any, set aside by RCFC in the designated Excess Funding Account in respect of Group VI Exchanged Vehicles for use as Substitute Group VI Exchanged Vehicle Proceeds.

 

“Successors and Assigns” shall mean, with respect to any Manufacturer, such Manufacturer’s successors and assigns by merger, sale or other transfer (including a sale pursuant to section 363 of the Bankruptcy Code), reorganization (including a reorganization under chapter 11 of the Bankruptcy Code) or restructuring or otherwise; provided, that with respect to any Manufacturer, the Master Servicer shall provide the Trustee and Master Collateral Agent with written notice when a successor or assign shall be deemed to be the Successor and Assign of such Manufacturer and, upon the written consent of the Controlling Noteholder (such consent not to be unreasonably withheld, delayed or conditioned), such Successor and Assign shall be deemed to be such Manufacturer for all purposes under this Supplement and the other Related Documents (including, for the avoidance of doubt, being deemed to be the Manufacturer of all vehicles manufactured by the predecessor or assignor prior to such notice); provided, that for the avoidance of doubt, a successor or assign of a Manufacturer shall not be a Successor and Assign of such Manufacturer absent such designation by the Master Servicer and such written consent of the Controlling Noteholder.

 

“Supplemental Documents” has the meaning specified in Section 2.1 of the Master Lease.

 

“Surety Bond” means any instrument pursuant to which the issuer thereof agrees to pay on behalf of DTAG or any of its Subsidiaries, an amount then due and payable by DTAG or such Subsidiary to another Person (including an insurer of DTAG or such Subsidiary).

 

“Suzuki” means American Suzuki Motor Corporation, a California corporation, and its Successors and Assigns.

 

“Tangible Net Worth” means, with respect to DTAG and its Subsidiaries at any date, the result of (a) the excess of (i) all assets of DTAG and its Subsidiaries determined on a consolidated basis in accordance with GAAP (for purposes of this definition, as defined in the Credit Agreement, as in effect on the date hereof) over (ii) all liabilities of DTAG and its Subsidiaries determined on a consolidated basis in accordance with GAAP, in each case classified as such on the consolidated balance sheet of DTAG and its Subsidiaries and excluding therefrom the cumulative balance of other comprehensive income (loss), as determined in accordance with GAAP), minus (b) the total book value of all assets of DTAG and its Subsidiaries properly classified as intangible assets under GAAP (including such items as goodwill).  The determination of the amounts of assets, liabilities, other comprehensive income (loss) and other applicable terms used in this definition will be determined as of the date of the financial statements most recently provided to RCFC pursuant to Section 24.4(c) of the Master Lease prior to the date of such determination.

 

 

 

  

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“Term” has the meaning specified in Section 3.2 of the Master Lease.

 

“Termination Demand” means a demand for a LOC Termination Disbursement under the Series 2010-2 Letter of Credit pursuant to a Certificate of Termination Demand.

 

“Termination Payment” is defined in Section 12 of the Master Lease.

 

“Third-Party Market Value” means, with respect to any Vehicle as of any Third-Party Market Value Date, the wholesale market value of such Vehicle as specified in the most recently published (but within the preceding three months) Automotive Lease Guide for the model description and model year of such Vehicle based on the average equipment and the average mileage of each Vehicle of such model class and model year; provided, that the Vehicles for which such price is not so specified in the Automotive Lease Guide within the preceding three months shall be excluded from the determination of Third-Party Market Value.

 

“Third-Party Market Value Adjustment Percentage” means, as of any Third-Party Market Value Determination Date, (a) a percentage equal to the excess, if any, of (i) 95% over (ii) the Third-Party Market Value Percentage as of such date, unless a different Third-Party Market Value Adjustment Percentage is specified pursuant to Section 8.7.

 

“Third-Party Market Value Date” means (i) the last day of each June, August, October, December, February and April after the Series 2010-2 Funding Date and prior to the Series 2010-2 Expected Final Payment Date and (ii) any additional “Third-Party Market Value Date” as specified pursuant to Section 8.7(c).

 

“Third-Party Market Value Determination Date” means (i) the Determination Date in each July, September, November, January, March and May after the Series 2010-2 Funding Date until the Determination Date immediately preceding the Series 2010-2 Expected Final Payment Date and (ii) any additional “Third-Party Market Value Determination Date” as specified pursuant to Section 8.7(c).

 

“Third-Party Market Value Percentage” means, as of any date of determination, a fraction expressed as a percentage, the numerator of which equals the aggregate Third-Party Market Values of Vehicles leased under the Master Lease, and for which a price is available in accordance with the definition of “Third-Party Market Value”, as of the most recent Third-Party Market Value Date and the denominator of which equals the aggregate Net Book Values of such Vehicles calculated as of such Third-Party Market Value Date.

 

“Third-Party Market Value Report” means a report in a Microsoft Excel electronic file (or similar electronic file) setting forth the following information with respect to each Vehicle leased under the Master Lease as of the related Third-Party Market Value Date:  VIN, model year, manufacturer, model description, mileage, Capitalized Cost, Net Book Value, registration state and lease start date.

 

“Third-Party Market Value Reporting Date” means (i) the sixth day (or if such day is not a Business Day, the next succeeding Business Day), or such later date as the Master Servicer and the Controlling Noteholder may reasonably agree, in each July, September, November, January, March and May after the Series 2010-2 Funding Date and (ii) any additional “Third-Party Market Value Reporting Date” as specified pursuant to Section 8.7(c), in each case, prior to the Series 2010-2 Expected Final Payment Date.

 

 

 

  

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“Thrifty” means Thrifty Rent-A-Car System, Inc., an Oklahoma corporation.

 

“Toyota” means Toyota Motor Sales, U.S.A., Inc., a California corporation, and its Successors and Assigns.

 

“Unused Exchange Proceeds” means the Exchange Proceeds that are not used to acquire Group VI Replacement Vehicles and which are transferred from an Escrow Account to RCFC in accordance with the terms of the Exchange Agreement.

 

“Used Vehicle” means any Vehicle acquired by RCFC that did not list DTG Operations or RCFC as the owner on the certificate of origin for such Vehicle.

 

“U.S. Dollar” or “Dollar” means the lawful currency of the United States of America.

 

“Vehicle Acquisition Schedule” has the meaning specified in Section 2.1 of the Master Lease.

 

“Vehicle Funding Date” has the meaning specified in Section 3.1 of the Master Lease.

 

“Vehicle Lease Commencement Date” has the meaning specified in Section 3.1 of the Master Lease.

 

“Vehicle Lease Expiration Date” means, with respect to each Group VI Vehicle, the earliest of (i) the Disposition Date for such Group VI Vehicle, (ii) if such Group VI Vehicle becomes a Casualty, the date funds in the amount of the Net Book Value thereof are received by the Lessor, the Master Collateral Agent or the Trustee (including by deposit into the Collection Account or the Master Collateral Account) from any of the Lessees in accordance with the Master Lease, and (iii) the Maximum Vehicle Lease Term for such Vehicle under the Operating Lease or the Financing Lease, as applicable, as specified in, respectively, paragraph 5 of Annex A or Annex B to the Master Lease, as applicable.

 

“Vehicle Order” has the meaning specified in Section 2.1 of the Master Lease.

 

“Vehicle Term” has the meaning specified in Section 3.1 of the Master Lease.

 

“VIN” has the meaning specified in the Master Lease.

 

“Volkswagen” means Volkswagen of America, Inc., a Michigan corporation, and its Successors and Assigns.

 

“Voluntary Decrease” has the meaning specified in Section 4A.3(b) of this Supplement.

 

 

 

  

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“Voting Stock” means, with respect to any Person, Capital Stock in respect of the class or classes pursuant to which the holders thereof have the general voting power under ordinary circumstances to elect at least a majority of the board of directors, managers, trustees or other similar governing body of such Person (irrespective of whether or not at the time the Capital Stock of any other class or classes shall have or might have voting power by reason of the occurrence of any contingency).

 

“Wholly Owned Subsidiary” means, with respect to any Person, a Subsidiary all the Capital Stock (other than directors’ qualifying shares that are required under applicable law) of which is owned by such Person or another Wholly Owned Subsidiary of such Person.

 

 

 

 

ARTICLE 3.

GRANT OF RIGHTS UNDER THE MASTER LEASE

 

Section 3.1                      Grant of Security Interest.

 

(a)           To secure the RCFC Obligations and to secure compliance with the provisions of the Base Indenture and this Supplement (in each case, notwithstanding anything to the contrary in any Related Document, solely with respect to the Group VI Series of Notes), RCFC hereby pledges, assigns, conveys, delivers, transfers and sets over to the Trustee, for the benefit of the Holders of any of the Group VI Series of Notes (the “Group VI Noteholders”), and hereby grants to the Trustee, for the benefit of the Group VI Noteholders, a first priority security interest in all of RCFC’s right, title and interest in and to all of the following assets, property and interest in property of RCFC, whether now owned or hereafter acquired or created, as it relates to the Master Lease, as that term is defined in this Supplement (all of the following being referred to as the “Master Lease Collateral”):

 

(i)           the rights of RCFC under the Master Lease and any other agreements relating to the Group VI Vehicles to which RCFC is a party, the Back-Up Disposition Agent Agreement (to the extent relating to the Group VI Series of Notes), the Back-Up Servicing Agreement (to the extent relating to the Group VI Series of Notes) and any Group VI Vehicle insurance agreements (collectively, the “RCFC Agreements”), including, without limitation, all monies due and to become due to RCFC from the Lessees under or in connection with the RCFC Agreements, whether payable as rent, guaranty payments, fees, expenses, costs, indemnities, insurance recoveries, damages for the breach of any of the RCFC Agreements or otherwise, and all rights, remedies, powers, privileges and claims of RCFC against any other party under or with respect to the RCFC Agreements (whether arising pursuant to the terms of such RCFC Agreements or otherwise available to RCFC at law or in equity), including the right to enforce any of the RCFC Agreements as provided herein and to give or withhold any and all consents, requests, notices, directions, approvals, extensions or waivers under or with respect to the RCFC Agreements or the obligations of any party thereunder;

 

(ii)           the Group VI Assignment of Exchange Agreement;

 

(iii)           any Unused Exchange Proceeds; and

 

 

 

  

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(iv)           all proceeds, products, offspring, rents or profits of any and all of the foregoing including, without limitation, payments under insurance except as excluded in clause (i) above (whether or not the Trustee is the loss payee thereof), and cash.

 

(b)           To further secure the RCFC Obligations with respect to the Series 2010-2 Notes (and, notwithstanding anything to the contrary in any Related Document, not any other Series of Notes), RCFC hereby pledges, assigns, conveys, delivers, transfers and sets over to the Trustee for the benefit of the Series 2010-2 Noteholders (but not any other Series of Notes), and hereby grants to the Trustee for the benefit of the Series 2010-2 Noteholders, a security interest in all of RCFC’s right, title and interest in and to all of the following assets, property and interests in property, whether now owned or hereafter acquired or created:

 

(i)           any Series 2010-2 Letter of Credit;

 

(ii)           (A) any Series 2010-2 Cash Collateral Account; (B) all funds on deposit therein from time to time; (C) all certificates and instruments, if any, representing or evidencing any or all of any Series 2010-2 Cash Collateral Account or the funds on deposit therein from time to time; and (D) all investments made at any time and from time to time with moneys in any Series 2010-2 Cash Collateral Account;

 

(iii)           the Series 2010-2 Distribution Account Collateral;

 

(iv)           the Demand Note;

 

(v)           all of RCFC’s right, title and interest in the Series 2010-2 Interest Rate Caps and all proceeds thereof; and

 

(vi)           all proceeds of any and all of the foregoing, including, without limitation, cash.

 

(c)           The Trustee, as trustee on behalf of the Group VI Noteholders, acknowledges the foregoing grant, accepts the trusts under this Supplement in accordance with the provisions of the Base Indenture and this Supplement and agrees to perform its duties required in this Supplement to the best of its abilities to the end that the interests of the Group VI Noteholders may be adequately and effectively protected.  The Master Lease Collateral shall secure the Group VI Series of Notes equally and ratably without prejudice, priority (except as otherwise stated in this Supplement) or distinction.

 

(d)           Notwithstanding anything to the contrary in this Supplement or the Related Documents, the Master Lease Collateral shall not include, and RCFC does not hereby pledge, assign, convey, deliver, transfer or set over to the Trustee or any of the Group VI Noteholders, any security interest, lien or other encumbrance in any Exchange Proceeds or any account or other arrangement for holding or investing any Exchange Proceeds until such time as RCFC is permitted to do so consistent with the limitations on the rights of a party to receive, pledge, borrow, or otherwise obtain the benefits of money or other property set forth in the “safe harbor” provisions of Treasury Regulation § 1.1031(k)-1(g)(6).

 

 

 

  

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(e)           Notwithstanding anything to the contrary in this Supplement or the Related Documents, the Master Lease Collateral shall not include the Retained Distribution Account, any funds on deposit therein from time to time, any certificates or instruments, if any, representing or evidencing any or all of the Retained Distribution Account or the funds on deposit therein from time to time, or any Permitted Investments made at any time and from time to time with the funds on deposit in the Retained Distribution Account (including the income thereon).

 

ARTICLE 4A

INITIAL ISSUANCE AND INCREASES AND DECREASES OF

SERIES 2010-2 INVESTED AMOUNT OF SERIES 2010-2 NOTES

 

Section 4A.1                      Issuance in Definitive Form.  Pursuant to Section 2.19 of the Base Indenture, upon request by the Initial Note Purchaser, the Issuer hereby consents to the issuance of the Series 2010-2 Notes in the form of Definitive Notes.  The Series 2010-2 Notes shall initially be sold to the Initial Note Purchaser in reliance on an exemption from the registration requirements of the Securities Act, and shall be issued in the form of one or more Definitive Notes, in fully registered form without interest coupons, substantially in the form attached hereto as Exhibit A, with such legends as may be applicable thereto, duly executed by the Issuer and authenticated by the Trustee as provided in Section 2.4 of the Base Indenture, in an aggregate stated principal amount of up to $300,000,000, as such amount may be increased or decreased in accordance with Section 2.03 of the Series 2010-2 Note Purchase Agreement (the “Series 2010-2 Maximum Invested Amount”).  The aggregate Series 2010-2 Invested Amount outstanding at any time may not exceed such amount as in effect at such time.

 

Section 4A.2                      Procedure for Increasing the Series 2010-2 Invested Amount.

 

(a)           Subject to satisfaction of the conditions precedent set forth in subsection (b) of this Section 4A.2 (as evidenced by an Officer’s Certificate of the Issuer delivered to the Trustee), on the Series 2010-2 Closing Date, the Issuer may issue Series 2010-2 Notes in the maximum principal amount described in Section 4A.1, the initial aggregate Series 2010-2 Invested Amount of which will be equal to the Series 2010-2 Initial Invested Amount.  Such Series 2010-2 Notes shall be issued to and registered in the name of the Initial Note Purchaser.  On the Series 2010-2 Funding Date and thereafter on each Increase Date during the Series 2010-2 Revolving Period, the Issuer may increase the Series 2010-2 Invested Amount (each such increase referred to as an “Increase”) in the manner provided in the Series 2010-2 Note Purchase Agreement (provided that the Issuer shall provide to the Trustee any notice in respect of such Increase as and when required to be delivered to the Note Purchasers under the Series 2010-2 Note Purchase Agreement) in amounts that satisfy the following requirements:  (i) the Series 2010-2 Enhancement Amount shall at least equal the Series 2010-2 Minimum Enhancement Amount after giving effect to such Increase in the Series 2010-2 Invested Amount and the application of the proceeds thereof (including to leasing Group VI Vehicles); and (ii) no Asset Amount Deficiency will result from such Increase (after giving effect to the application of the proceeds thereof).  Satisfaction of the above conditions shall be evidenced by the delivery of a certificate of the Issuer described below in subsection (b) hereof.  Proceeds from any Increase shall be deposited into the Series 2010-2 Collection Account and allocated in accordance with Article 4 hereof.  Upon each Increase, the Trustee shall, or shall cause the Note Registrar to, indicate in the Note Register such Increase.  The Increase in the Series 2010-2 Invested Amount shall be allocated pro rata (based on the unfunded amounts of the Note Purchasers’ respective Note Purchaser Funding Limits (as defined in the Series 2010-2 Note Purchase Agreement)) among the Outstanding Series 2010-2 Notes.

 

 

  

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(b)           The Series 2010-2 Invested Amount may be increased pursuant to subsection (a) above only upon satisfaction of each of the following conditions (as evidenced by an Officer’s Certificate delivered by the Issuer to the Trustee) with respect to each proposed Increase:

 

(i)           the amount of such Increase shall be in compliance with the requirements of the Series 2010-2 Note Purchase Agreement;

 

(ii)           after giving effect to such Increase, the Series 2010-2 Invested Amount shall not exceed the Series 2010-2 Maximum Invested Amount;

 

(iii)           there shall not then exist, nor shall such Increase result in the occurrence with respect to any Group VI Series of Notes of, (x) an Amortization Event, a Liquidation Event of Default or a Limited Liquidation Event of Default, or (y) an event or occurrence, which, with the passing of time or the giving of notice thereof, or both, would become an Amortization Event, a Liquidation Event of Default or a Limited Liquidation Event of Default;

 

(iv)           all conditions precedent (1) to the acquisition of additional Group VI Vehicles under the Master Lease and (2) to the making of the related Advances (as defined in the Series 2010-2 Note Purchase Agreement) under the Series 2010-2 Note Purchase Agreement shall have, in each case, been satisfied;

 

(v)           the Issuer or, with respect to Financed Vehicles, the applicable Lessee, as the case may be, shall have good and marketable title to each Group VI Vehicle purchased thereby with the proceeds from the sale of and of Increases in the Series 2010-2 Notes, free and clear of all Liens and encumbrances, other than any Permitted Liens;

 

(vi)           each Lessee shall have granted to the Master Collateral Agent, for the benefit of the Trustee, and RCFC shall have granted to the Master Collateral Agent, for the benefit of the Trustee, in each case on behalf of the Series 2010-2 Noteholders, a security interest in all Group VI Vehicles now or hereafter purchased or financed by the Issuer with the proceeds from the sale of and Increases in the Series 2010-2 Notes or with any contributions of capital made by DTAG in favor of the Issuer to the extent allocable to the Series 2010-2 Notes;

 

(vii)           the Issuer shall have granted to the Trustee a first priority security interest in its right, title and interest in and to the Master Lease and the Master Lease Collateral;

 

(viii)           notice of such Increase shall have been delivered in accordance with Section 4A.2(a);

 

 

  

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(ix)           no more than one Increase (except as otherwise agreed by the Controlling Noteholder) shall occur during any calendar month;

 

(x)           all representations and warranties set forth in Article 6 of the Base Indenture and in Section 23 of the Master Lease shall be true and correct with the same effect as if made on and as of the date of such Increase (except to the extent such representations relate to an earlier date); and

 

(xi)           with respect to each Increase, the Master Servicer shall have calculated the Series 2010-2 Available Subordinated Amount and the Series 2010-2 Enhancement Amount.

 

Section 4A.3                      Decreases.

 

(a)           Mandatory Decreases.  Whenever (a) the Series 2010-2 Enhancement Amount is less than the Series 2010-2 Minimum Enhancement Amount or (b) there exists an Asset Amount Deficiency, then, on the Payment Date immediately following discovery by the Issuer or the Master Servicer of any such deficiency, the Issuer shall decrease the Series 2010-2 Invested Amount by the amount (if any) necessary, so that after giving effect to any increases in the Series 2010-2 Enhancement Amount or the Aggregate Asset Amount on or prior to such Payment Date and to all Decreases of the Series 2010-2 Invested Amount on or prior to such Payment Date, no such deficiency described in either clause (a) or clause (b) shall exist on such Payment Date (each reduction of the Series 2010-2 Invested Amount pursuant to this Section 4A.3(a), a “Mandatory Decrease”).  Upon such discovery, the Issuer shall deliver notice of any such Mandatory Decrease and the related Payment Date to the Trustee.

 

(b)           Voluntary Decreases.  Upon at least five (5) Business Days’ prior irrevocable notice (or such shorter notice period as may be agreed by the Controlling Noteholder) to the Controlling Noteholder and the Trustee in writing the Issuer may voluntarily prepay all or a portion of the Series 2010-2 Invested Amount in accordance with the procedures set forth herein (each reduction of the Series 2010-2 Invested Amount pursuant to this Section 4A.3(b), a “Voluntary Decrease”); provided, that all Voluntary Decreases pursuant to this Section 4A.3(b) shall be allocated such that the Series 2010-2 Enhancement Amount after giving effect to such Decrease is not less than the Series 2010-2 Minimum Enhancement Amount.  Each such Decrease shall be, in the aggregate for all Series 2010-2 Notes, in a minimum principal amount of $1,000,000 and increments of $100,000 in excess thereof (or, if less, in the amount of the then-outstanding Series 2010-2 Invested Amount).

 

(c)           Upon receipt by a Responsible Officer of the Trustee of written notice that a Decrease has been completed, the Trustee shall, or shall cause the Note Registrar to, indicate in the Note Register such Decrease.  The amount of any Decrease shall not exceed the amount on deposit in the Series 2010-2 Collection Account and available for distribution to Series 2010-2 Noteholders in respect of principal on the Series 2010-2 Notes on the date specified in the related notice of Decrease referred to in clauses (a) and (b) above.

 

(d)           Any Decrease referred to in clauses (a) and (b) above shall be applied pro rata among the Outstanding Series 2010-2 Notes and in accordance with the provisions of Article 4.

 

 

  

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ARTICLE 4.

ALLOCATION AND APPLICATION OF COLLECTIONS

 

Any provisions of Article 4 of the Base Indenture, which allocate and apply Collections shall continue to apply irrespective of the issuance of the Series 2010-2 Notes.  Sections 4.1 through 4.5 of the Base Indenture shall be read in their entirety as provided in the Base Indenture, provided that for purposes of the Series 2010-2 Notes, clauses (c), (d) and (e) of Section 4.2 of the Base Indenture shall be modified as permitted by Section 11.1(f) of the Base Indenture and shall read as follows:

 

(c)  Right of Master Servicer to Deduct Amounts.  Notwithstanding anything in this Indenture to the contrary but subject to any limitations set forth in the Series 2010-2 Supplement, as long as (x) the Master Servicer is DTAG or an Affiliate of DTAG and (y) the Retained Interest Amount equals or exceeds zero, the Master Servicer (i) may make or cause to be made deposits of Collections to the Group VI Collection Account net of any amounts which are allocable to the Retained Distribution Account or represent amounts due and owing to it in its capacity as Master Servicer and (ii) need not deposit or cause to be deposited any amounts to be paid to the Master Servicer pursuant to this Section 4.2 and such amounts will be deemed paid to the Master Servicer, as the case may be, pursuant to this Section 4.2.

 

(d)  Sharing Collections.  To the extent that Principal Collections that are allocated to the Series 2010-2 Notes on or before a Payment Date are not needed to make payments of principal to Series 2010-2 Noteholders or required to be deposited in the Series 2010-2 Distribution Account on such Payment Date, such Principal Collections may, at the written direction of the Master Servicer, be applied to cover principal payments due to or for the benefit of Noteholders of other Group VI Series of Notes.  Any such reallocation will not result in a reduction of the Aggregate Principal Balance of the Series 2010-2 Notes or the Series 2010-2 Invested Amount.

 

(e)  Unallocated Principal Collections.  If, after giving effect to Section 4.2(d), Principal Collections allocated to the Series 2010-2 Notes are in excess of the amount required to pay amounts due in respect of the Series 2010-2 Notes on the next succeeding Payment Date in full, then any such excess Principal Collections shall be allocated in accordance with Section 4.7(a)(i)(E) or 4.7(b)(i)(E) of the Series 2010-2 Supplement, if applicable, otherwise to the Retained Distribution Account (provided that no Series 2010-2 Enhancement Deficiency or Asset Amount Deficiency exists or would result from such allocation).

 

In addition, for purposes of Section 4.2(a) of the Base Indenture, the Master Servicer in its capacity as such under the Master Lease shall cause all Collections allocable to Group VI Collateral in accordance with the Indenture and the Master Collateral Agency Agreement, as applicable, to be paid directly into the Group VI Collection Account or the Master Collateral Account, as applicable.

 

 

 

 

  

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Article 4 of the Base Indenture (except for Sections 4.1 through 4.5 thereof subject to the proviso in the first paragraphs of this Article 4 and the immediately precedingsentence) shall read in its entirety as follows and shall be applicable only to the Series 2010-2 Notes:

 

Section 4.6                      Establishment of Accounts.      

 

(a)           The Trustee has created an administrative sub-account within the Collection Account for the benefit of Holders of Notes from a Group VI Series of Notes (such sub-account, the “Group VI Collection Account”).  In addition, the Trustee shall create two administrative sub-accounts within the Group VI Collection Account.  One such sub-account shall be established for the benefit of the Series 2010-2 Noteholders (such sub-account, the “Series 2010-2 Collection Account”).  The second sub-account shall be established for the benefit of the Series 2010-2 Noteholders (such sub-account, the “Series 2010-2 Excess Funding Account”).  The Trustee will further divide the Series 2010-2 Excess Funding Account by creating an additional administrative sub-account for the benefit of the Series 2010-2 Noteholders (such sub-account, the “Series 2010-2 Cash Liquidity Account”).  Portions of funds on deposit in the Series 2010-2 Excess Funding Account may, on the Series 2010-2 Closing Date and from time to time thereafter, be designated by RCFC as either (i) the Series 2010-2 Cash Liquidity Amount or (ii) all or a portion of the Substitute Group VI Exchanged Vehicle Proceeds Amount.  These designated amounts shall be available only for the purposes specified herein and shall not be otherwise generally available for withdrawal to be used for the same purposes as other funds in the Series 2010-2 Excess Funding Account.

 

(b)           The Trustee will further divide the Series 2010-2 Collection Account by creating an additional administrative sub-account for the benefit of the Series 2010-2 Noteholders (such sub-account, the “Series 2010-2 Accrued Interest Account”).

 

(c)           All Collections in respect of the Group VI Collateral and allocable to the Group VI Series of Notes shall be allocated to the Group VI Collection Account.  All Collections in the Group VI Collection Account allocable to the Series 2010-2 Notes and the Series 2010-2 Available Subordinated Amount shall be allocated to the Series 2010-2 Collection Account or the Series 2010-2 Excess Funding Account as provided below; provided, however, the Trustee shall also deposit all amounts required to be deposited in the Series 2010-2 Cash Liquidity Account as provided hereinbelow and such amounts on deposit in the Series 2010-2 Cash Liquidity Account shall only be available for application as provided in Sections 4.8(c) and 4.9, and shall not be available to be withdrawn in respect of amounts otherwise to be withdrawn from the Series 2010-2 Excess Funding Account pursuant to the Base Indenture, this Supplement or any other Series Supplement.

 

Section 4.7                      Allocations with Respect to the Series 2010-2 Notes.  All allocations in this Section 4.7 will be made in accordance with written direction of the Master Servicer.  The proceeds from the sale of the Series 2010-2 Notes (or the initial Increase, as applicable), together with any funds deposited with RCFC by DTAG in its capacity as the Retained Interestholder in connection with such issuance or Increase, will, on the Series 2010-2 Closing Date or the Series 2010-2 Funding Date, as applicable, be deposited by the Trustee into the Group VI Collection Account and, concurrently with such initial deposit, allocated by the Trustee to the Series 2010-2 Excess Funding Account.  On each Business Day on which Collections are deposited into the Group VI Collection Account (each such date, a “Series 2010-2 Deposit Date”), the Master

 

 

  

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Servicer will direct the Trustee in writing to allocate all amounts deposited into the Group VI Collection Account in accordance with the provisions of this Section 4.7.

 

(a)           Allocations During the Series 2010-2 Revolving Period.  During the Series 2010-2 Revolving Period, the Master Servicer will direct the Trustee to allocate, on each Series 2010-2 Deposit Date, all amounts deposited into the Group VI Collection Account as set forth and in the order provided below:

 

(i)           with respect to all Collections (including Recoveries and Lease Payment Recoveries) and from Increases:

 

(A)           allocate to the Series 2010-2 Collection Account an amount equal to the sum of (1) the Series 2010-2 Interest Collections received on such day and (2) any Series 2010-2 Interest Rate Cap Proceeds received by the Trustee on such day.  All such amounts allocated to the Series 2010-2 Collection Account shall be further allocated to the Series 2010-2 Accrued Interest Account; provided, however, that if with respect to any Related Month the aggregate of all such amounts allocated to the Series 2010-2 Accrued Interest Account during such Related Month exceeds the Series 2010-2 Interest Amount and any other fees and expenses of RCFC due and payable in respect of the Series 2010-2 Notes on the Payment Date next succeeding such Related Month pursuant to Section 4.8, then the amount of such excess shall be allocated to the Series 2010-2 Excess Funding Account;

 

(B)           allocate an amount equal to the Series 2010-2 Invested Percentage (as of such day) of the aggregate amount of Collections that are Principal Collections on such day (for any such day, such amount, the “Series 2010-2 Principal Allocation”) to the extent constituting Recoveries and Lease Payment Recoveries to the Series 2010-2 Collection Account in an amount necessary, after taking into account the allocation of Interest Collections in (A) above, first, to replenish the Series 2010-2 Cash Collateral Account to the extent withdrawals have theretofore been made pursuant to Section 4.14(b) and/or Section 4.15(b) hereof in respect of Series 2010-2 Lease Payment Losses and/or unpaid Demand Note draws, which withdrawals have not been replenished pursuant to this Section 4.7(a)(i), and second, to replenish the Series 2010-2 Available Subordinated Amount to the extent that the Series 2010-2 Available Subordinated Amount has theretofore been reduced as a result of any Losses or Lease Payment Losses previously allocated thereto pursuant to Section 4.7(a)(ii) or (iii) below and not replenished pursuant to this Section 4.7(a)(i);

 

 

  

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(C)           to the extent a Mandatory Decrease is required on the next succeeding Payment Date under Section 4A.3(a) of this Supplement, allocate to the Series 2010-2 Distribution Account for the payment of the Series 2010-2 Invested Amount, an amount equal to the lesser of (i) the sum of (A) any remaining (after making the allocations in (B) above) Principal Collections constituting the Series 2010-2 Principal Allocation on such day plus (B) any other funds on deposit in the Series 2010-2 Collection Account (excluding any Interest Collections but including proceeds from any Increase) and the Series 2010-2 Excess Funding Account in excess of the Series 2010-2 Cash Liquidity Amount, if any, and the Substitute Group VI Exchanged Vehicle Proceeds Amount, if any, and (ii) the amount, as stated in such Master Servicer’s direction, necessary for such Mandatory Decrease;

 

(D)           allocate to the Series 2010-2 Distribution Account the amount, as stated in such Master Servicer’s direction, of any Voluntary Decrease in the Series 2010-2 Invested Amount to be made on or after such Series 2010-2 Deposit Date (as specified in the related notice of such Voluntary Decrease) in accordance with Section 4A.3(b) of this Supplement;

 

(E)           allocate to the Series 2010-2 Excess Funding Account an amount equal to the sum of (1) the Series 2010-2 Principal Allocation remaining after the allocations in clauses (B), (C) and (D) above, plus (2) the proceeds from any Increase remaining after the allocations in clause (C) above; and

 

(F)           allocate to the Retained Distribution Account an amount equal to (x) the Retained Interest Percentage (as of such day) of the aggregate amount of Collections that are Principal Collections on such date, minus (y) any amounts, other than Servicing Fees, that have been withheld by the Master Servicer pursuant to Section 4.2(c) of the Base Indenture to the extent such amounts withheld under Section 4.2(c) of the Base Indenture represent all or part of the Retained Interest Amount;

 

(ii)           with respect to all Losses:

 

(A)           allocate an amount equal to the Series 2010-2 Invested Percentage (as of such day) of the aggregate amount of Losses on such day, first, to reduce the Series 2010-2 Available Subordinated Amount until the Series 2010-2 Available Subordinated Amount has been reduced to zero and second, allocate the remaining portion of the Series 2010-2 Invested Percentage of such Losses to making a claim under the Demand Note pursuant to Section 4.15 hereof until such claim would reduce the Demand Note to zero; and

 

(B)           allocate to the Retained Interest Amount an amount equal to the Retained Interest Percentage (as of such day) of the aggregate amount of such Losses on such day, which amount shall reduce the Retained Interest Amount.

 

 

  

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(iii)           with respect to all Lease Payment Losses:

 

(A)           allocate an amount equal to the Series 2010-2 Invested Percentage (as of such day) of the aggregate amount of Lease Payment Losses on such day, first, to reduce the Series 2010-2 Available Subordinated Amount until the Series 2010-2 Available Subordinated Amount has been reduced to zero, and second, allocate the remaining portion of the Series 2010-2 Invested Percentage of such Lease Payment Losses to making a drawing under the Series 2010-2 Letter of Credit pursuant to Section 4.14(b) hereof (except during any Insolvency Period to the extent that such remaining Lease Payment Losses relate to unpaid Monthly Base Rent or Casualty Payments any such allocation and drawing shall be limited to the Permitted Principal Draw Amount) until such drawing would reduce the Series 2010-2 Letter of Credit Liquidity Amount to zero; and

 

(B)           allocate to the Retained Interest Amount an amount equal to the Retained Interest Percentage (as of such day) of the aggregate amount of such Lease Payment Losses on such day, which amount shall reduce the Retained Interest Amount.

 

(b)           Allocations During the Series 2010-2 Controlled Amortization Period.  During the Series 2010-2 Controlled Amortization Period, the Master Servicer will direct the Trustee to allocate, on each Series 2010-2 Deposit Date, all amounts deposited into the Group VI Collection Account as set forth and in the order provided below:

 

(i)           with respect to all Collections (including Recoveries and Lease Payment Recoveries):

 

(A)           allocate to the Series 2010-2 Collection Account an amount determined in the manner set forth in Section 4.7(a)(i)(A) above for such day, which amount shall be deposited in the Series 2010-2 Accrued Interest Account and, as and to the extent provided in Section 4.7(a)(i)(A) above, allocated to the Series 2010-2 Excess Funding Account;

 

(B)           allocate to the Series 2010-2 Collection Account out of the Series 2010-2 Principal Allocation to the extent constituting Recoveries and Lease Payment Recoveries, an amount necessary first, to replenish the Series 2010-2 Cash Collateral Account to the extent withdrawals have theretofore been made pursuant to Section 4.14(b) and/or Section 4.15(b) hereof in respect of Series 2010-2 Lease Payment Losses and/or unpaid Demand Note draws, which withdrawals have not been replenished pursuant to this Section 4.7(b)(i) or Section 4.7(a)(i) above, and second, to replenish the Series 2010-2 Available Subordinated Amount to the extent that the Series 2010-2 Available Subordinated Amount has theretofore been reduced as a result of any Losses or Lease Payment Losses previously allocated thereto pursuant to Section 4.7(b)(ii) or (iii) below or Section 4.7(a)(ii) or (iii) above and not replenished pursuant to this Section 4.7(b)(i) or Section 4.7(a)(i) above;

 

 

 

  

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(C)           allocate to the Series 2010-2 Distribution Account an amount determined in the manner set forth in Section 4.7(a)(i)(C) above for such day;

 

(D)           allocate to the Series 2010-2 Distribution Account an amount determined in the manner set forth in Section 4.7(a)(i)(D) above for such day;

 

(E)           allocate to the Series 2010-2 Collection Account an amount equal to the remaining Series 2010-2 Principal Allocation for such day (after making the allocations in clauses (B), (C) and (D) above), which amount shall be used to make principal payments in respect of the Series 2010-2 Notes; provided, however, that if the aggregate amount of all such remaining Series 2010-2 Principal Allocations during a Related Month exceeds the Series 2010-2 Controlled Amortization Amount for the Payment Date next succeeding such Related Month, such excess shall be allocated to the Series 2010-2 Excess Funding Account; and

 

(F)           allocate to the Retained Distribution Account an amount determined in the manner set forth in Section 4.7(a)(i)(F) above for such day;

 

(ii)           with respect to all Losses:

 

(A)           first, decrease the Series 2010-2 Available Subordinated Amount and, second, make a claim under the Demand Note in accordance with Section 4.15 hereof, as and to the extent provided in Section 4.7(a)(ii)(A) above for such day; and

 

(B)           allocate to the Retained Interest Amount an amount determined in the manner set forth in Section 4.7(a)(ii)(B) above for such day, which amount shall reduce the Retained Interest Amount.

 

(iii)           with respect to all Lease Payment Losses:

 

(A)           first, decrease the Series 2010-2 Available Subordinated Amount and, second, make a drawing under the Series 2010-2 Letter of Credit in accordance with Section 4.14(b) hereof, as and to the extent provided in Section 4.7(a)(iii)(A) above for such day; and

 

(B)           allocate to the Retained Interest Amount an amount determined in the manner set forth in Section 4.7(a)(iii)(B) above for such day, which amount shall reduce the Retained Interest Amount.

 

(c)           Allocations During the Series 2010-2 Rapid Amortization Period.  During the Series 2010-2 Rapid Amortization Period, the Master Servicer will direct the Trustee to allocate, on each Series 2010-2 Deposit Date, all amounts deposited into the Group VI Collection Account as set forth and in the order provided below:

 

(i)           with respect to all Collections (including Recoveries and Lease Payment Recoveries):

 

 

 

  

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(A)           allocate to the Series 2010-2 Collection Account an amount determined in the manner set forth in Section 4.7(a)(i)(A) above for such day, plus, an amount up to $750,000 in the aggregate with respect to all Series 2010-2 Deposit Dates to be applied to the payment of legal fees and expenses, if any, and, if the Servicing Transfer Date with respect  to the Group VI Series of Notes has occurred, the amount equal to the fees due and payable to the Back-Up Servicer and/or the Back-Up Disposition Agent, as applicable, with respect to the Group VI Series of Notes, to the extent allocable to the Series 2010-2 Notes, which amount shall be deposited in the Series 2010-2 Accrued Interest Account and, as and to the extent provided in Section 4.7(a)(i)(A) above, allocated to the Series 2010-2 Excess Funding Account;

 

(B)           allocate to the Series 2010-2 Collection Account an amount equal to the remaining Series 2010-2 Principal Allocation for such day (to the extent necessary to cause the Series 2010-2 Invested Amount to be paid in full), which amount shall be used to make principal payments on a pro rata basis in respect of the Series 2010-2 Notes;

 

(C)           allocate to the Series 2010-2 Collection Account out of the remaining Series 2010-2 Principal Allocation, an amount necessary first, to replenish the Series 2010-2 Cash Collateral Account to the extent withdrawals have theretofore been made pursuant to Section 4.14(b) and/or Section 4.15(b) hereof in respect of Series 2010-2 Lease Payment Losses and/or unpaid Demand Note draws, which withdrawals have not been replenished pursuant to this Section 4.7(c)(i) or Section 4.7(a)(i) or 4.7(b)(i) above, and second, to replenish the Series 2010-2 Available Subordinated Amount to the extent that the Series 2010-2 Available Subordinated Amount has theretofore been reduced as a result of any Losses or Lease Payment Losses allocated thereto pursuant to Section 4.7(c)(ii) or (iii) below or Section 4.7(a)(ii) or (iii) or 4.7(b)(ii) or (iii) above and not replenished pursuant to this Section 4.7(c)(i) or Section 4.7(a)(i) or 4.7(b)(i) above; and

 

(D)           allocate to the Retained Distribution Account an amount determined as set forth in Section 4.7(a)(i)(F) above for such day;

 

(ii)           with respect to all Losses:

 

(A)           first, decrease the Series 2010-2 Available Subordinated Amount and, second, make a claim under the Demand Note as and to the extent provided in Section 4.7(a)(ii)(A) above for such day; and

 

 

 

  

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(B)           allocate to the Retained Interest Amount an amount determined as set forth in Section 4.7(a)(ii)(B) above for such day, which amount shall reduce the Retained Interest Amount.

 

(iii)           with respect to all Lease Payment Losses:

 

(A)           first, decrease the Series 2010-2 Available Subordinated Amount and, second, make a claim under the Series 2010-2 Letter of Credit in accordance with Section 4.14(b) hereof, as and to the extent provided in Section 4.7(a)(iii)(A) above for such day; and

 

(B)           allocate to the Retained Interest Amount an amount determined in the manner set forth in Section 4.7(a)(iii)(B) above for such day, which amount shall reduce the Retained Interest Amount.

 

(d)           Additional Allocations.  Notwithstanding the foregoing provisions of this Section 4.7,

 

(i)           provided the Series 2010-2 Rapid Amortization Period has not commenced, amounts allocated to the Series 2010-2 Excess Funding Account in excess of the Series 2010-2 Cash Liquidity Amount, if any, and the Substitute Group VI Exchanged Vehicle Proceeds Amount, if any, and that are not allocated to making payments under the Series 2010-2 Notes or other amounts pursuant to this Article 4, may, at RCFC’s option and as and to the extent permitted in the related Series Supplements, be used to pay the principal amount of other Group VI Series of Notes that are then in amortization and, after such payment, any remaining funds may, at RCFC’s option, be (A) used to finance, refinance or acquire Vehicles, to the extent Eligible Vehicles have been requested by any of the Lessees under the Master Lease, or (B) transferred, on any Payment Date, to the Retained Distribution Account, to the extent that the Retained Interest Amount equals or exceeds zero after giving effect to such payment and so long as no Series 2010-2 Enhancement Deficiency or Asset Amount Deficiency exists or would result therefrom; provided, however, that funds remaining after the application of such funds to the payment of the principal amount of other Group VI Series of Notes that are in amortization and to the financing, refinancing or acquisition of Group VI Vehicles may be transferred to the Retained Distribution Account on a day other than a Payment Date if the Master Servicer furnishes to the Trustee an Officer’s Certificate to the effect that such transfer will not cause any of the foregoing deficiencies to occur either on the date that such transfer is made or, in the reasonable anticipation of the Master Servicer, on the next Payment Date.  Funds in the Retained Distribution Account shall, at the option of DTAG, be available to finance, refinance or acquire Vehicles, to the extent Eligible Vehicles have been requested by any of the Lessees under the Master Lease, to pay the Net Book Value of Vehicles being tendered for exchange of like-kind property into the Group VI Collection Account, or for distribution to the Retained Interestholder (including any advances made under the Demand Note or otherwise);

 

(ii)           if the Master Servicer is not DTAG or an Affiliate of DTAG, the Master Servicer shall not be entitled to withhold any amounts pursuant to Section 4.2(c) and the Trustee shall deposit amounts payable to the Master Servicer in the Group VI Collection Account pursuant to the provisions of Section 4.2 on each Series 2010-2 Deposit Date;

 

 

 

  

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(iii)           any amounts withheld by the Master Servicer and not deposited in the Group VI Collection Account pursuant to Section 4.2(c) shall be deemed to be deposited in the Group VI Collection Account on the date such amounts are withheld for purposes of determining the amounts to be allocated pursuant to this Section 4.7;

 

(iv)           if there is more than one Group VI Series of Notes outstanding, then Sections 4.7(a)(i)(F), 4.7(b)(i)(F) and 4.7(c)(i)(D) above shall not be duplicative with any similar provisions contained in any other Supplement and the Retained Interestholder shall only be paid such amount once with respect to any Payment Date;

 

(v)           RCFC may, from time to time in its discretion, but with the consent of the Master Servicer (or, if DTAG is not the Master Servicer, with the consent of the Retained Interestholder), increase the Series 2010-2 Available Subordinated Amount by (a) (i) allocating to the Series 2010-2 Available Subordinated Amount Eligible Vehicles theretofore allocated to the Retained Interest and (ii) delivering to the Trustee an Officer’s Certificate affirming with respect to such Vehicles the representations and warranties set forth in Section 6.13 of the Base Indenture or (b) (i) depositing funds into the Series 2010-2 Excess Funding Account by transfer from the Retained Distribution Account or otherwise, and (ii) delivering to the Master Servicer and the Trustee an Officer’s Certificate setting forth the amount of such funds and stating that such funds shall be allocated to the Series 2010-2 Available Subordinated Amount; provided, however, that RCFC shall have no obligation to so increase the Series 2010-2 Available Subordinated Amount at any time;

 

(vi)           if, on any Payment Date during the Series 2010-2 Revolving Period, a Mandatory Decrease shall be required under Section 4A.3(a) of this Supplement and the amounts allocated to the Series 2010-2 Invested Amount under Section 4.7(a)(i)(C) are less than the amount of such required Decrease, then, in such event, any funds (A) on deposit in the Group VI Collection Account that are allocable to the Retained Interest Amount or (B) on deposit in the Excess Funding Accounts for other Group VI Series of Notes issued and outstanding under the Indenture which amounts are in excess of the amounts necessary to be on deposit in each such Excess Funding Account in order that (x) no Asset Amount Deficiency shall occur, (y) no shortfall in the required level of enhancement for each such Group VI Series of Notes shall occur, including any portion of such enhancement that is required to be in liquid funds, and (z) no Amortization Event or Potential Amortization Event for any such series shall occur (such amounts as are set forth in clauses (A) and (B) of this subparagraph (vi) being referred to herein as “Excess Amounts”) shall, in each such case, be deposited into the Series 2010-2 Distribution Account as Principal Collections in an aggregate amount up to the amount of any such deficiency and shall be used, in accordance with Section 4.7(a), to reduce the Series 2010-2 Invested Amount;

 

 

  

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(vii)           if, on any Payment Date during the Series 2010-2 Controlled Amortization Period, the amount allocated under Section 4.7(b)(i)(E) is insufficient to pay the Series 2010-2 Controlled Amortization Amount with respect to such Payment Date in full, then, in such event, any funds constituting Excess Amounts shall, in each such case, be deposited into the Series 2010-2 Distribution Account as Principal Collections in an aggregate amount up to the amount of any such deficiency and shall be used in accordance with Section 4.10(b)(ii) to pay the remaining balance of the Series 2010-2 Controlled Amortization Amount for such Payment Date;

 

(viii)           if, on any Payment Date during the Series 2010-2 Rapid Amortization Period, the amount allocated under Section 4.7(c)(i)(B) is insufficient to reduce the Series 2010-2 Invested Amount to zero, then, in such event, any funds constituting Excess Amounts shall, in each such case, be deposited into the Series 2010-2 Distribution Account as Principal Collections in an aggregate amount up to the amount of any such deficiency and shall be used in accordance with Section 4.10(c)(ii) to reduce the Series 2010-2 Invested Amount;

 

(ix)           if an Insolvency Period has not commenced, amounts on deposit in the Series 2010-2 Cash Liquidity Account in excess of the Series 2010-2 Minimum Liquidity Amount on any Series 2010-2 Deposit Date may on such Series 2010-2 Deposit Date be withdrawn at the discretion of the Master Servicer from the Series 2010-2 Cash Liquidity Account and deposited into the Series 2010-2 Excess Funding Account; and

 

(x)           if an Insolvency Period has commenced, amounts on deposit in the Series 2010-2 Cash Liquidity Account will be available to be transferred by the Trustee to the distribution accounts for application pursuant to Sections 4.8 and 4.9 hereof, as applicable.

 

(e)           Allocation of Proceeds Upon Payment in Full of Group VI Obligations.  After the payment in full of the Invested Amount of all Group VI Series of Notes that have been issued by RCFC, all amounts due under the Indenture and the Related Documents with respect to each such Group VI Series of Notes and all amounts due by RCFC under any other agreements it may have with the Enhancement Providers (if any) with respect to any Group VI Series of Notes, all Collections and all proceeds received by RCFC, the Trustee or the Master Collateral Agent in respect of the Group VI Collateral allocable to this Series in accordance with the Indenture and the Master Collateral Agency Agreement shall be allocated and transferred to the Retained Distribution Account.

 

Section 4.8                      Monthly Payments.  All of the payments in this Section 4.8 will be made in accordance with written direction of the Master Servicer.  On each Reporting Date, as provided below, the Master Servicer shall instruct the Trustee to withdraw, and on the following Payment Date the Trustee, acting in accordance with such instructions shall withdraw the amounts required to be withdrawn from the Group VI Collection Account pursuant to Sections 4.8(a) through (c) below in respect of all funds available from Series 2010-2 Interest Collections and Series 2010-2 Interest Rate Cap Proceeds processed since the preceding Payment Date and allocated to the holders of the Series 2010-2 Notes.

 

 

 

  

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(a)           Note Interest with respect to the Series 2010-2 Notes.  On each Reporting Date, the Master Servicer shall instruct the Trustee to, and the Trustee shall, withdraw on the next succeeding Payment Date from the Series 2010-2 Accrued Interest Account (after taking into account any funds available therein from the Series 2010-2 Cash Liquidity Account, if any, the Series 2010-2 Excess Funding Account in excess of the Series 2010-2 Cash Liquidity Amount, if any, and the Substitute Group VI Exchanged Vehicle Proceeds Amount, if any, proceeds of draws on the Series 2010-2 Letter of Credit, in each case, applied as described in Section 4.9 of this Supplement, and after giving effect to the allocations, drawings and withdrawals provided for in Sections 4.8(b) and (c) below, to the extent applicable), and deposit in the Series 2010-2 Distribution Account the amount on deposit therein available for the payment of the Series 2010-2 Accrued Interest Amount, to be used to pay, in accordance with Section 5.1 of the Base Indenture, to each Series 2010-2 Noteholder the portion of the Series 2010-2 Accrued Interest Amount payable to such Noteholder for such Payment Date.

 

(b)           Legal Fees.  On each Payment Date during the Series 2010-2 Rapid Amortization Period, the Master Servicer shall instruct the Trustee, prior to making all distributions required to be made pursuant to Section 4.8(a) of this Supplement, to withdraw on such date from the Series 2010-2 Accrued Interest Account, for payment to the Issuer, an amount up to an aggregate amount for all such Payment Dates of $750,000 to be applied to the payment of legal fees and expenses, if any, of the Issuer.  On such Payment Date, the Trustee shall withdraw such amount from the Series 2010-2 Accrued Interest Account and remit such amount to the Issuer.

 

(c)           Servicing Fee.  On each Reporting Date (or, after the commencement of the Series 2010-2 Rapid Amortization Period, on each Payment Date), the Master Servicer shall, after directing all distributions required to be made pursuant to Sections 4.8(a) and (b) of this Supplement or if the Servicing Transfer Date shall have occurred on or prior to the related Determination Date, prior to such distributions being made (or if in addition to the foregoing the Series 2010-2 Rapid Amortization Period has also commenced, prior to making all distributions required to be made pursuant to Section 4.8(a) of this Supplement but after making all distributions required to be made pursuant to Section 4.8(b)), instruct each of the Trustee and the Paying Agent to withdraw on the related Payment Date from the Series 2010-2 Accrued Interest Account, for payment to:

 

(i)             the Master Servicer, an amount equal to (a) the Series 2010-2 Monthly Servicing Fee and any Series 2010-2 Monthly Supplemental Servicing Fee accrued during the preceding Series 2010-2 Interest Period, plus (b) all accrued and unpaid Series 2010-2 Monthly Servicing Fees and any accrued and unpaid Series 2010-2 Monthly Supplemental Servicing Fees with respect to prior Series 2010-2 Interest Periods, minus (c) the amount of any Series 2010-2 Monthly Servicing Fees and Series 2010-2 Monthly Supplemental Servicing Fees withheld during the preceding Series 2010-2 Interest Period by the Master Servicer pursuant to the Base Indenture;

 

(ii)             the Back-Up Servicer, an amount equal to all accrued and unpaid fees due and owing to the Back-Up Servicer under the Back-Up Servicing Agreement with respect to the Series 2010-2 Notes to and including the related Payment Date;

 

 

  

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(iii)             the Back-Up Disposition Agent, an amount equal to all accrued and unpaid fees due and owing to the Back-Up Disposition Agent under the Back-Up Disposition Agent Agreement with respect to the Series 2010-2 Notes to and including the related Payment Date; and

 

(iv)             the applicable parties, an amount equal to any Carrying Charges included in the Series 2010-2 Interest Amount and not otherwise accounted for pursuant to Section 4.8(a) or (b) or this Section 4.8(c).

 

On the following Payment Date (or such Payment Date, as the case may be), the Trustee shall withdraw such amount from the Series 2010-2 Accrued Interest Account and remit such amount to the Master Servicer, the Back-Up Servicer and/or the Back-Up Disposition Agent and/or such other parties, as applicable.  If an Insolvency Period shall be continuing on any Payment Date during the Series 2010-2 Rapid Amortization Period, or if such Payment Date is on or after the Series 2010-2 Final Maturity Date and, in either case, the amount on deposit in the Series 2010-2 Accrued Interest Account is insufficient to pay the amount described in the second preceding sentence owing to any successor Master Servicer, the Back-Up Servicer or the Back-Up Disposition Agent, as the case may be, the Trustee shall withdraw from funds on deposit in the Series 2010-2 Cash Liquidity Account, if any, an amount equal to the lesser of (i) the amount of such insufficiency and (ii) the amount then on deposit in the Series 2010-2 Cash Liquidity Account, if any, and shall remit such amount, as well as any amount available in the Series 2010-2 Accrued Interest Account, pro rata, to any such successor Master Servicer for payment to such successor Master Servicer, the Back-Up Servicer and/or the Back-Up Disposition Agent, as applicable.

 

Section 4.9                      Payment of Note Interest.

 

All payments made pursuant to this Section 4.9 will be made in accordance with the written instructions of the Master Servicer.  On each Payment Date,

 

(a)           to the extent any Series 2010-2 Monthly Interest Shortfall exists after the deposits required pursuant to Section 4.8 of this Supplement have been made, and if and only if an Insolvency Period shall be continuing (or if such Payment Date is on or after the Series 2010-2 Final Maturity Date), the Master Servicer shall instruct the Paying Agent to withdraw from funds on deposit in the Series 2010-2 Cash Liquidity Account, if any, an amount equal to the lesser of (A) the amount on deposit in the Series 2010-2 Cash Liquidity Account, if any, on such Payment Date (after giving effect to any withdrawals therefrom required on such Payment Date by Section 4.18), and (B) the remaining amount of the Series 2010-2 Monthly Interest Shortfall, and deposit such amount in the Series 2010-2 Distribution Account to pay the Series 2010-2 Interest Amount to each of the Series 2010-2 Noteholders, to remit to the Issuer for payment of legal fees in accordance with Section 4.8(b) and to pay the Master Servicer, the Back-Up Disposition Agent, the Back-Up Servicer and any other applicable parties pursuant to Section 4.8(c)(iv) (including the Trustee, if applicable) all in accordance with the priorities set forth in Section 4.8;

 

(b)           to the extent any Series 2010-2 Monthly Interest Shortfall exists after the deposits required pursuant to Section 4.8 of this Supplement and, if applicable, clause (a) of this Section 4.9 have been made, the Master Servicer shall instruct the Paying Agent to withdraw from funds on deposit in the Series 2010-2 Excess Funding Account, an amount equal to the lesser of (A) the amount on deposit in the Series 2010-2 Excess Funding Account in excess of the Substitute Group VI Exchanged Vehicle Proceeds Amount, if any, on such Payment Date and the Series 2010-2 Cash Liquidity Amount, if any, on such Payment Date in an amount not to exceed the Series 2010-2 Available Subordinated Amount at such time, and (B) the remaining amount of the Series 2010-2 Monthly Interest Shortfall, and deposit such amount in the Series 2010-2 Distribution Account to pay the Series 2010-2 Interest Amount to the extent payable to each of the Series 2010-2 Noteholders, to remit to the Issuer for payment of legal fees in accordance with Section 4.8(b) and to pay the Master Servicer, the Back-Up Disposition Agent,

 

 

  

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the Back-Up Servicer and any other applicable parties pursuant to Section 4.8(c)(iv) (including the Trustee, if applicable) all in accordance with the priorities set forth in Section 4.8; and

 

(c)           to the extent any such Series 2010-2 Monthly Interest Shortfall remains after the deposits required pursuant to clauses (a) and (b) of this Section 4.9 have been made, if amounts have been drawn on the Series 2010-2 Letter of Credit and deposited into the Series 2010-2 Collection Account pursuant to Section 4.14 of this Supplement, the Master Servicer shall instruct the Paying Agent to withdraw from the Series 2010-2 Collection Account on such Payment Date the lesser of (A) the amount on deposit in the Series 2010-2 Collection Account representing such amount drawn on the Series 2010-2 Letter of Credit and (B) the amount of the remaining Series 2010-2 Monthly Interest Shortfall, and deposit such amount in the Series 2010-2 Distribution Account to pay the Series 2010-2 Interest Amount to the extent payable to each of the Series 2010-2 Noteholders, to remit to the Issuer for payment of legal fees in accordance with Section 4.8(b) and to pay the Master Servicer, the Back-Up Disposition Agent, the Back-Up Servicer and any other applicable parties pursuant to Section 4.8(c)(iv) (including the Trustee, if applicable) all in accordance with the priorities set forth in Section 4.8.  On each Payment Date the Paying Agent shall, in accordance with the Master Servicer’s most recent Monthly Certificate, pay to each of the Series 2010-2 Noteholders from the Series 2010-2 Distribution Account the portion of the Series 2010-2 Interest Amount deposited in the Series 2010-2 Distribution Account for the payment of the Series 2010-2 Accrued Interest Amount pursuant to Section 4.8 of this Supplement and this Section 4.9.

 

Section 4.10                      Payment of Note Principal; Decreases.

 

All payments made pursuant to this Section 4.10 will be made in accordance with the written instructions of the Master Servicer.

 

(a)           Commencing on the second Determination Date after the commencement of the Series 2010-2 Controlled Amortization Period, the Master Servicer shall instruct the Trustee or the Paying Agent as to the following:

 

(i)  the Series 2010-2 Controlled Amortization Amount for the Related Month, (ii) the amount allocated to the Series 2010-2 Notes during the Related Month pursuant to Section 4.7(b)(i)(E) of this Supplement, and (iii) the amount, if any, by which the amount in clause (i) above exceeds the amount in clause (ii) above (the amount of such excess the “Series 2010-2 Controlled Distribution Amount Deficiency”); and

 

(b)           Commencing on the second Payment Date after the commencement of the Series 2010-2 Controlled Amortization Period:

 

 

 

  

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(i) the Trustee shall, in respect of the Series 2010-2 Notes, withdraw from the Series 2010-2 Collection Account an amount equal to the lesser of the amounts specified in clauses (i) and (ii) of Section 4.10(a) of this Supplement, and deposit such amount in the Series 2010-2 Distribution Account to be paid, pro rata, to the Series 2010-2 Noteholders on account of the Series 2010-2 Controlled Amortization Amount;

 

(ii) to the extent any Series 2010-2 Controlled Distribution Amount Deficiency remains after application of the amounts specified in clause (i) of this subsection, the Trustee shall cause amounts allocated pursuant to Section 4.7(d)(vii) to be paid, pro rata, to the Series 2010-2 Noteholders on account of the Series 2010-2 Controlled Amortization Amount; provided, that any such Excess Amounts shall be applied on a pro rata basis with respect to each Group VI Series of Notes with respect to which a controlled distribution amount deficiency exists after application of the amounts specified in the corresponding sections of the related Series Supplements;

 

(iii) to the extent any Series 2010-2 Controlled Distribution Amount Deficiency remains after application of the amounts specified in clauses (i) and (ii) of this subsection, the Master Servicer shall instruct the Trustee to withdraw, from funds on deposit in the Series 2010-2 Excess Funding Account, an amount equal to the lesser of (x) the amount on deposit in the Series 2010-2 Excess Funding Account in excess of the Series 2010-2 Cash Liquidity Amount, if any, and the Substitute Group VI Exchanged Vehicle Proceeds Amount, if any, on such Payment Date (after application of any amounts on deposit in the Series 2010-2 Excess Funding Account pursuant to Section 4.9 of this Supplement) and (y) the remaining amount of the Series 2010-2 Controlled Distribution Amount Deficiency, and deposit such amount in the Series 2010-2 Distribution Account to be paid, pro rata, to the Series 2010-2 Noteholders on account of the Series 2010-2 Controlled Amortization Amount; and

 

(iv) to the extent any Series 2010-2 Controlled Distribution Amount Deficiency remains after application of the amounts specified in clauses (i) through (iii) of this subsection, if amounts have been drawn on the Series 2010-2 Letter of Credit and deposited into the Series 2010-2 Collection Account pursuant to Section 4.14 of this Supplement, or amounts have been claimed under the Demand Note or drawn under the Series 2010-2 Letter of Credit in respect thereof and deposited into the Series 2010-2 Collection Account pursuant to Section 4.15 of this Supplement, the Master Servicer shall instruct the Trustee to withdraw from the Series 2010-2 Collection Account on such Payment Date the lesser of (x) the amount on deposit in the Series 2010-2 Collection Account representing such draw on the Series 2010-2 Letter of Credit, or payment under the Demand Note (in each case, after application of any portion thereof pursuant to Section 4.9 of this Supplement) and (y) the remaining amount of the Series 2010-2 Controlled Distribution Amount Deficiency (if any), and deposit such amount in the Series 2010-2 Distribution Account to be paid, pro rata, to the Series 2010-2 Noteholders on account of the Series 2010-2 Controlled Amortization Amount; provided, however, that on the Series 2010-2 Expected Final Payment Date for the Series 2010-2 Notes, the Trustee shall withdraw from the Series 2010-2 Collection Account, as provided above, an amount which is no greater than the Series 2010-2 Invested Amount as of such date.

 

 

  

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(c)           On each Payment Date to occur during the Series 2010-2 Rapid Amortization Period:

 

(i) the Trustee shall withdraw from the Series 2010-2 Collection Account the amount allocated thereto pursuant to Section 4.7(c)(i)(B) of this Supplement and deposit such amounts in the Series 2010-2 Distribution Account to make principal payments, pro rata, to the Series 2010-2 Noteholders;

 

(ii) to the extent any portion of the Series 2010-2 Invested Amount remains unpaid after application of the amounts specified in clause (i) above, the Trustee shall cause amounts allocated pursuant to Section 4.7(d)(viii) to make principal payments, pro rata, to the Series 2010-2 Noteholders; provided, that any such Excess Amounts shall be applied on a pro rata basis with respect to each Group VI Series of Notes with respect to which a deficiency exists;

 

(iii) to the extent any portion of the Series 2010-2 Invested Amount remains unpaid after application of the amounts specified in clauses (i) and (ii), the Master Servicer shall instruct the Trustee to withdraw, from funds on deposit in the Series 2010-2 Excess Funding Account, an amount equal to the lesser of (x) the amount on deposit in the Series 2010-2 Excess Funding Account in excess of the Series 2010-2 Cash Liquidity Amount, if any, (or, on any date on or after the Series 2010-2 Final Maturity Date (or prior to such date but during the Series 2010-2 Rapid Amortization Period if requested by the Controlling Noteholder by written notice to the Trustee and the Issuer), the amount on deposit in the Series 2010-2 Excess Funding Account without the foregoing limitation after application of the Series 2010-2 Cash Liquidity Amount to pay the fees of any successor Master Servicer provided for in Section 4.8(c) of this Supplement, and interest in respect of the Series 2010-2 Notes as provided in Section 4.9(a)) and the Substitute Group VI Exchanged Vehicle Proceeds Amount, if any, on such Payment Date (after application of any amounts on deposit in the Series 2010-2 Excess Funding Account pursuant to Section 4.9 of this Supplement), and (y) the unpaid portion of the Series 2010-2 Invested Amount and deposit such amount in the Series 2010-2 Distribution Account to be paid, pro rata, to the Series 2010-2 Noteholders; and

 

(iv) to the extent any portion of the Series 2010-2 Invested Amount still remains unpaid after application of the amounts specified in clauses (i) through (iii) above, if amounts have been drawn on the Series 2010-2 Letter of Credit and deposited into the Series 2010-2 Collection Account pursuant to Section 4.14 of this Supplement or amounts have been claimed under the Demand Note or drawn under the Series 2010-2 Letter of Credit in respect thereof and deposited into the Series 2010-2 Collection Account pursuant to Section 4.15 of this Supplement, the Master Servicer shall instruct the Trustee to withdraw from the Series 2010-2 Collection Account on such Payment Date the least of (x) the amount on deposit in the Series 2010-2 Collection Account representing such draw on the Series 2010-2 Letter of Credit, or payment under the Demand Note (in each case, after application of any portion thereof pursuant to Section 4.9 of

 

 

  

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this Supplement), (y) if during an Insolvency Period, the Permitted Principal Draw Amount on such date, and (z) the remaining unpaid portion of the Series 2010-2 Invested Amount over the amounts described in clauses (i) through (iii) above and deposit such amounts in the Series 2010-2 Distribution Account to make principal payments, pro rata, to the Series 2010-2  Noteholders; provided, however, that on the final Payment Date for the Series 2010-2 Notes, the Trustee shall withdraw from the Series 2010-2 Collection Account, as provided above, an amount up to the Series 2010-2 Invested Amount as of such date.

 

(d)           On each Payment Date occurring on or after the date a withdrawal is made pursuant to Section 4.10(b) or (c) of this Supplement, the Paying Agent shall, in accordance with Section 5.1 of the Base Indenture and the Master Servicer’s most recent Monthly Certificate pay to the applicable Series 2010-2 Noteholders, pro rata, the lesser of the Series 2010-2 Invested Amount and the amount deposited in the Series 2010-2 Distribution Account for the payment of principal pursuant to Section 4.10(b) or (c), as applicable, of this Supplement.

 

(e)           On each date on which a Decrease is to be effected pursuant to Section 4A.3 of this Supplement, the Trustee shall withdraw from the Series 2010-2 Collection Account the amounts allocated to such Decrease pursuant to Section 4.7(a)(i)(C) or (D) or Section 4.7(b)(i)(C) or (D) of this Supplement, as applicable, and deposit such amounts in the Series 2010-2 Distribution Account to make principal payments, pro rata, to the Series 2010-2 Noteholders, and the Paying Agent shall pay to the Series 2010-2 Noteholders the amount deposited in the Series 2010-2 Distribution Account for the payment of principal pursuant to this Section 4.10(e) and Section 4A.3.

 

Section 4.11                      Retained Distribution Account.  On each Payment Date, the Master Servicer shall instruct the Trustee in writing to instruct the Paying Agent to transfer to the Retained Distribution Account (established pursuant to Section 4.1(b) of the Base Indenture) (i) all funds in the Group VI Collection Account that have been allocated to the Retained Distribution Account as of such Payment Date and (ii) all funds that were previously allocated to the Retained Distribution Account but not transferred to the Retained Distribution Account.

 

Section 4.12                      Series 2010-2 Distribution Account.

 

(a)           Establishment of Series 2010-2 Distribution Account.  The Trustee shall establish and maintain in the name of the Trustee for the benefit of the Series 2010-2 Noteholders, or cause to be established and maintained, an account (the “Series 2010-2 Distribution Account”), bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Series 2010-2 Noteholders.  The Series 2010-2 Distribution Account shall be maintained (i) with a Qualified Institution, or (ii) as a segregated trust account with the corporate trust department of a depository institution or trust company having corporate trust powers and acting as trustee for funds deposited in the Series 2010-2 Distribution Account.  If the Series 2010-2 Distribution Account is not maintained in accordance with the previous sentence, the Master Servicer shall establish a new Series 2010-2 Distribution Account, within ten (10) Business Days after obtaining knowledge of such fact, which complies with such sentence, and shall instruct the Trustee to transfer all cash and investments from the

 

 

  

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non-qualifying Series 2010-2 Distribution Account into the new Series 2010-2 Distribution Account.  Initially, the Series 2010-2 Distribution Account will be established with the Trustee.

 

(b)           Administration of the Series 2010-2 Distribution Account.  The Master Servicer shall instruct the institution maintaining the Series 2010-2 Distribution Account in writing to invest funds on deposit in the Series 2010-2 Distribution Account at all times in Permitted Investments; provided, however, that any such investment shall mature not later than the Business Day prior to the Payment Date following the date on which such funds were received, unless any Permitted Investment held in the Series 2010-2 Distribution Account is held with the Trustee, in which case such investment may mature on such Payment Date provided that such funds shall be available for withdrawal on or prior to such Payment Date.  The Trustee shall hold, for the benefit of the Series 2010-2 Noteholders, possession of any negotiable instruments or securities evidencing the Permitted Investments from the time of purchase thereof until the time of maturity.

 

(c)           Earnings from Series 2010-2 Distribution Account.  Subject to the restrictions set forth above, the Master Servicer shall have the authority to instruct the Trustee with respect to the investment of funds on deposit in the Series 2010-2 Distribution Account.  All interest and earnings (net of losses and investment expenses) on funds on deposit in the Series 2010-2 Distribution Account shall be deemed to be on deposit and available for distribution.

 

(d)           Series 2010-2 Distribution Account Constitutes Additional Collateral for Series 2010-2 Notes.  In order to secure and provide for the payment of the RCFC Obligations with respect to the Series 2010-2 Notes (but not the other Notes), RCFC hereby assigns, pledges, grants, transfers and sets over to the Trustee, for the benefit of the Series 2010-2 Noteholders, all of RCFC’s right, title and interest in and to the following (whether now or hereafter existing and whether now owned or hereafter acquired):  (i) the Series 2010-2 Distribution Account; (ii) all funds on deposit therein from time to time; (iii) all certificates and instruments, if any, representing or evidencing any or all of the Series 2010-2 Distribution Account or the funds on deposit therein from time to time; (iv) all Permitted Investments made at any time and from time to time with monies in the Series 2010-2 Distribution Account; and (v) all proceeds of any and all of the foregoing, including, without limitation, cash (the items in the foregoing clauses (i) through (v) are referred to, collectively, as the “Series 2010-2 Distribution Account Collateral”).  The Trustee shall possess all right, title and interest in all funds on deposit from time to time in the Series 2010-2 Distribution Account and in all proceeds thereof.  The Series 2010-2 Distribution Account Collateral shall be under the sole dominion and control of the Trustee, and the Paying Agent at the direction of the Trustee, in each case for the benefit of the Series 2010-2 Noteholders.

 

 

 

  

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Section 4.13                      The Master Servicer’s or the Back-Up Servicer’s Failure to Instruct the Trustee to Make a Deposit or Payment.  If the Master Servicer (or Back-Up Servicer on and after the Servicing Transfer Date) fails to give notice or instructions to make any payment from or deposit into the Group VI Collection Account required to be given by the Master Servicer (or Back-Up Servicer on and after the Servicing Transfer Date), at the time specified in the Master Lease or any other Related Document (including applicable grace periods), and such failure is known by the Trustee, the Trustee shall make such payment or deposit into or from the Group VI Collection Account without such notice or instruction from the Master Servicer (or Back-Up Servicer on and after the Servicing Transfer Date) if and to the extent that the Trustee has been furnished information adequate, in the sole discretion of the Trustee, to determine the amounts and beneficiaries of such payments.  Pursuant to the Master Lease, the Master Servicer (or Back-Up Servicer on and after the Servicing Transfer Date) has agreed that it shall, upon request of the Trustee, promptly provide the Trustee with all information necessary to allow the Trustee to make such a payment or deposit.

 

Section 4.14                      Lease Payment Loss Draw on Series 2010-2 Letter of Credit

 

(a)           So long as a Series 2010-1 Letter of Credit is in effect, at or before 4:00 p.m. (New York City time) on the Business Day immediately prior to each Payment Date, the Master Servicer shall notify the Trustee pursuant to the Master Lease of the amount of the Series 2010-2 Lease Payment Losses, such notification to be in the form of Exhibit C to this Supplement.

 

(b)           So long as the Series 2010-2 Letter of Credit shall not have been terminated, on any Payment Date that there are Series 2010-2 Lease Payment Losses allocated to making a drawing under the Series 2010-2 Letter of Credit pursuant to Sections 4.7(a)(iii)(A), 4.7(b)(iii)(A) or 4.7(c)(iii)(A), as applicable, of this Supplement, the Trustee shall, by 9:00 a.m. (New York City time) on such Payment Date, draw on the Series 2010-2 Letter of Credit by presenting a draft in an amount equal to the lesser of (i) the Series 2010-2 Lease Payment Losses allocated to making a drawing under the Series 2010-2 Letter of Credit, and (ii) the amount available to be drawn on the Series 2010-2 Letter of Credit on such Payment Date (after giving effect to any drawing under Section 4.15 hereof), accompanied by a Certificate of Credit Demand.  The proceeds of such draw shall be deposited as soon as practicable in the Series 2010-2 Collection Account for further allocation to the Series 2010-2 Distribution Account in accordance with the instructions of the Master Servicer and pursuant to the terms of this Supplement; provided, that to the extent that on any Payment Date any proceeds of a draw on the Series 2010-2 Letter of Credit remain on deposit in the Series 2010-2 Collection Account or Series 2010-2 Distribution Account, (after giving effect to all applications thereof pursuant to Section 4.9(c) and/or Section 4.10, as applicable, on such Payment Date) the Master Servicer shall instruct the Trustee or Paying Agent to deposit such remaining proceeds into the Series 2010-2 Cash Liquidity Account.

 

Section 4.15                      Claim Under the Demand Note

 

(a)           On each Determination Date, the Master Servicer shall determine the aggregate amount, if any, of Losses that have occurred during the Related Month.  In the event the aggregate amount of such Losses occurring during such Related Month exceed the aggregate amount of Recoveries received during such Related Month, the Master Servicer shall set forth the aggregate amount of such net Losses in the Monthly Noteholders’ Statement, and the Trustee shall make the allocations as set forth in Sections 4.7(a)(ii)(A), 4.7(b)(ii)(A) and 4.7(c)(ii)(A), as applicable, of this Supplement.  If any amounts are allocated to a claim under the Demand Note pursuant to such Sections (any such amounts, “Demand Note Claim Amounts”), the Trustee shall transmit to the issuer of the Demand Note a demand for payment (each, a “Demand Notice”) under the Demand Note in the amount of the lesser of (x) the outstanding amount of such

 

 

  

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Demand Note and (y) the Demand Note Claim Amounts, in each case such payment to be made on or prior to the next succeeding Payment Date by deposit of funds into the Series 2010-2 Collection Account in the specified amount.

 

(b)           If on any Payment Date on which (x) a Demand Notice has been transmitted to the issuer of the Demand Note on the related Determination Date pursuant to Section 4.15(a) above and the Demand Note issuer shall have failed to deposit into the Series 2010-2 Collection Account the amount specified in such Demand Notice, on or prior to 10:00 a.m. (New York City time) on such Payment Date, (y) a Demand Notice for payment by the issuer of the Demand Note could be transmitted to the issuer of the Demand Note on the related Determination Date pursuant to Section 4.15(a) above, but has been prevented from being transmitted or, if so transmitted, the issuer of the Demand Note has been prevented from making any payment thereunder, as a result of the operation of any bankruptcy or insolvency law, or (z) a payment made by the issuer of the Demand Note under the Demand Note pursuant to Section 4.15(a) above has been avoided and recovered pursuant to Sections 547 and 550 of the Bankruptcy Code on or before such Payment Date, then, so long as the Series 2010-2 Letter of Credit shall not have been terminated, the Trustee shall, by 1:00 p.m. (New York City time) on the same Business Day, draw on the Series 2010-2 Letter of Credit by presenting a draft in an amount equal to the lesser of (1) (i) that portion of the amount demanded under the Demand Note as specified in Section 4.15(a) above that has not been deposited into the Series 2010-2 Collection Account as of 10:00 a.m. (New York City time) on such Payment Date, in the case of clause (x) above, (ii) the amount of the stayed demand for payment, in the case of clause (y) above, or (iii) the amount avoided and recovered, in the case of clause (z) above, and (2) the Series 2010-2 Letter of Credit Amount, in each case accompanied by a Certificate of Credit Demand.  The proceeds of such draw shall be deposited in the Series 2010-2 Collection Account for application pursuant to Section 4.10(b) or (c) of this Supplement, as applicable.

 

(c)           Demand Note Constitutes Additional Collateral for Series 2010-2 Notes.  In order to secure and provide for the payment of the RCFC Obligations with respect to the Series 2010-2 Notes (but not the other Notes), RCFC hereby assigns, pledges, grants, transfers and sets over to the Trustee, for the benefit of the Series 2010-2 Noteholders, all of RCFC’s right, title and interest in and to the Demand Note and all proceeds thereof.  The Trustee shall possess all right, title and interest in the Demand Note, all rights to make claims thereunder and all payments thereon and all proceeds thereof.

 

Section 4.16                      Series 2010-2 Letter of Credit Termination Demand.

 

(a)           If prior to the date that is 30 days prior to a then scheduled Series 2010-2 Letter of Credit Expiration Date, if any,

 

(i)           the related Series 2010-2 Letter of Credit shall not have been extended or there shall not have been appointed a successor institution to act as Series 2010-2 Letter of Credit Provider with respect to such Series 2010-2 Letter of Credit, and

 

 

  

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(ii)           the payments to be made by the Lessees under the Master Lease shall not have otherwise been credit enhanced with (A) the funding of the Series 2010-2 Cash Collateral Account with cash in the amount of the Series 2010-2 Letter of Credit Liquidity Amount or the funding of the Series 2010-2 Cash Liquidity Account in an amount sufficient to meet the conditions set forth in Section 5.1(b), (B) other cash collateral accounts, overcollateralization or subordinated securities or (C) with the prior written consent of the Controlling Noteholder, a Surety Bond or other similar arrangement; provided, however, that any such successor institution or other form of substitute credit enhancement referred to in the foregoing clauses (B) and (C) shall be approved by the Controlling Noteholder;

 

then the Master Servicer shall notify the Trustee in writing pursuant to the Master Lease no later than one Business Day prior to the Series 2010-2 Letter of Credit Expiration Date of (x) the Series 2010-2 Invested Amount on such date, and (y) the amount available to be drawn on the Series 2010-2 Letter of Credit on such date.  Upon receipt of such notice by the Trustee on or prior to 10:00 a.m. (New York City time) on any Business Day, the Trustee shall, by 1:00 p.m. (New York City time) on such Business Day (or, in the case of any notice given to the Trustee after 10:00 a.m. (New York City time), by 1:00 p.m. (New York City time) on the next following Business Day), draw the lesser of the amounts set forth in clauses (x) and (y) of this Section 4.16(a) on the Series 2010-2 Letter of Credit by presenting a draft accompanied by a Certificate of Termination Demand and shall deposit the proceeds of the disbursement resulting therefrom in a special deposit account established pursuant to Section 4.17 below (the “Series 2010-2 Cash Collateral Account”).

 

(b)           The Master Servicer shall notify the Trustee in writing pursuant to the Master Lease within one Business Day of becoming aware that the short-term debt credit rating of any Series 2010-2 Letter of Credit Provider has fallen below “P-1” in the case of Moody’s or “A-1” in the case of Standard & Poor’s.  At such time the Master Servicer shall also notify the Trustee of (i) the Series 2010-2 Invested Amount on such date, and (ii) the Series 2010-2 Letter of Credit Liquidity Amount on such date.  Upon the 30th Business Day following receipt of such notice by the Trustee if the condition described in the first sentence of this Section 4.16(b) shall remain in effect on or prior to 10:00 a.m. (New York City time) on any Business Day, unless the Master Servicer shall have obtained a new letter of credit, substantially in a form approved by the Controlling Noteholder and provided by an entity with short-term debt credit ratings of at least “P-1” by Moody’s and “A-1” by Standard & Poor’s, or the Master Servicer shall have otherwise arranged for substitute enhancement in accordance with Section 4.16(a)(ii), the Trustee shall, by 1:00 p.m. (New York City time) on such Business Day (or, in the case of any notice given to the Trustee after 10:00 a.m. (New York City time), by 1:00 p.m. (New York City time) on the next following Business Day), draw on the Series 2010-2 Letter of Credit in an amount equal to the lesser of the Series 2010-2 Invested Amount on such Business Day and the amount available to be drawn on the Series 2010-2 Letter of Credit on such Business Day by presenting a draft accompanied by a Certificate of Termination Demand and shall deposit the proceeds of the disbursement resulting therefrom in the Series 2010-2 Cash Collateral Account.  The Master Servicer shall notify the Trustee on such 30th Business Day if either (i) the Series 2010-2 Invested Amount on such date or (ii) the Series 2010-2 Letter of Credit Liquidity Amount on such date is different than the amounts previously reported.

 

 

 

  

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Section 4.17                      The Series 2010-2 Cash Collateral Account.

 

(a)           Upon receipt of notice of a draw on a Series 2010-2 Letter of Credit pursuant to Section 4.16, the Trustee shall establish and maintain in the name of the Trustee for the benefit of the Series 2010-2 Noteholders, or cause to be established and maintained, the Series 2010-2 Cash Collateral Account bearing a designation clearly indicating that the funds deposited therein are held for the Series 2010-2 Noteholders.  The Series 2010-2 Cash Collateral Account shall be maintained (i) with a Qualified Institution, or (ii) as a segregated trust account with the corporate trust department of a depository institution or trust company having corporate trust powers and acting as trustee for funds deposited in the Series 2010-2 Cash Collateral Account.  If the Series 2010-2 Cash Collateral Account is not maintained in accordance with the prior sentence, then within ten (10) Business Days after obtaining knowledge of such fact, the Master Servicer shall establish a new Series 2010-2 Cash Collateral Account which complies with such sentence and shall instruct the Trustee in writing to transfer into the new Series 2010-2 Cash Collateral Account all cash and investments from the non-qualifying Series 2010-2 Cash Collateral Account.  When established, the Series 2010-2 Cash Collateral Account is intended to function in all respects as the replacement for, and the equivalent of, the related Series 2010-2 Letter of Credit.  Accordingly, following its creation, each reference in this Series Supplement to a draw on the Series 2010-2 Letter of Credit shall refer to withdrawals from the Series 2010-2 Cash Collateral Account and references to similar terms shall mean and be a reference to actions taken with respect to the Series 2010-2 Cash Collateral Account that correspond to actions that otherwise would have been taken with respect to the Series 2010-2 Letter of Credit.  Without limiting the generality of the foregoing, upon funding of the Series 2010-2 Cash Collateral Account, the Trustee shall, at all times when the Trustee is otherwise required to make a draw under the Series 2010-2 Letter of Credit pursuant to Section 4.14 or 4.15 of this Supplement, make a withdrawal from the Series 2010-2 Cash Collateral Account in the amount and at such time as a draw would be made under the Series 2010-2 Letter of Credit pursuant to Section 4.14 or 4.15 of this Supplement.  The Trustee shall provide written notice to DTAG of any withdrawal from the Series 2010-2 Cash Collateral Account pursuant to Section 4.14 or 4.15 of this Supplement.

 

(b)           In order to secure and provide for the payment of the RCFC Obligations with respect to the Series 2010-2 Notes (but not any other Series of Notes), RCFC hereby assigns, pledges, grants, transfers and sets over to the Trustee, for the benefit of the Series 2010-2 Noteholders, all of RCFC’s right, title and interest in and to the following (whether now or hereafter existing and whether now owned or hereafter acquired):  (i) the Series 2010-2 Cash Collateral Account; (ii) all funds on deposit therein from time to time; (iii) all certificates and instruments, if any, representing or evidencing any or all of the Series 2010-2 Cash Collateral Account or the funds on deposit therein from time to time; (iv) all Permitted Investments made at any time and from time to time with the monies in the Series 2010-2 Cash Collateral Account; and (v) all proceeds of any and all of the foregoing, including, without limitation, cash.  The Trustee shall possess all right, title and interest in all funds on deposit from time to time in the Series 2010-2 Cash Collateral Account and in all proceeds thereof.  The Series 2010-2 Cash Collateral Account shall be under the sole dominion and control of the Trustee for the benefit of the Series 2010-2 Noteholders and the applicable Series 2010-2 Letter of Credit Provider, as their interests appear herein, which interest in the case of the applicable Series 2010-2 Letter of Credit Provider shall be subject and subordinate to the interests of the holders of Series 2010-2 Notes as provided herein.

 

 

  

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(c)           Funds on deposit in the Series 2010-2 Cash Collateral Account shall, at the written direction of the Master Servicer, be invested by the Trustee in Permitted Investments.  Funds on deposit in the Series 2010-2 Cash Collateral Account on any Payment Date, after giving effect to any deposits to or withdrawals from the Series 2010-2 Cash Collateral Account on such Payment Date, shall be invested in Permitted Investments that will mature at such time that such funds will be available for withdrawal on or prior to the following Payment Date.  The proceeds of any such investment, to the extent not distributed on such Payment Date, shall be invested in Permitted Investments that will mature at such time that such funds will be available for withdrawal on or prior to the Payment Date immediately following the date of such investment.  The Trustee shall maintain for the benefit of the Series 2010-2 Noteholders and the applicable Series 2010-2 Letter of Credit Provider as their interests appear herein, which interest in the case of the applicable Series 2010-2 Letter of Credit Provider shall be subject and subordinate to the interests of the holders of the Series 2010-2 Notes as provided herein, possession of the negotiable instruments or securities evidencing the Permitted Investments from the time of purchase thereof until the time of sale or maturity.  On each Payment Date, all interest and earnings (net of losses and investment expenses) accrued since the preceding Payment Date on funds on deposit in the Series 2010-2 Cash Collateral Account shall be paid to the applicable Series 2010-2 Letter of Credit Provider to the extent of any unreimbursed draws on the Series 2010-2 Letter of Credit.  Subject to the restrictions set forth above, the Master Servicer, or a Person designated in writing by the Master Servicer with written notification thereof to the Trustee, shall have the authority to instruct the Trustee with respect to the investment of funds on deposit in the Series 2010-2 Cash Collateral Account.  For purposes of determining the availability of funds or the balances in the Series 2010-2 Cash Collateral Account for any reason under the Indenture, all investment earnings on such funds shall be deemed not to be available or on deposit.

 

(d)           Series 2010-2 Cash Collateral Account Surplus.  If the Series 2010-2 Cash Collateral Account Surplus on any Payment Date, after giving effect to all withdrawals from the Series 2010-2 Cash Collateral Account, is greater than zero, the Trustee, acting in accordance with the written instructions of the Master Servicer, shall withdraw from the Series 2010-2 Cash Collateral Account an amount equal to the Series 2010-2 Cash Collateral Account Surplus and shall pay from such amount to the applicable Series 2010-2 Letter of Credit Provider, an amount equal to the amount of unreimbursed draws under the Series 2010-2 Letter of Credit or, to the extent such draws have been reimbursed, to the Series 2010-2 Collection Account.

 

(e)           Termination of Series 2010-2 Cash Collateral Account.  Upon the termination of this Indenture pursuant to Section 10.1 of the Base Indenture, the Trustee, acting in accordance with the written instructions of the Master Servicer, after the prior payment of all amounts owing to the Series 2010-2 Noteholders and payable from the Series 2010-2 Cash Collateral Account as provided herein, shall withdraw from the Series 2010-2 Cash Collateral Account all amounts on deposit therein and shall pay from such amounts to the applicable Series 2010-2 Letter of Credit Provider an amount equal to the amount of unreimbursed draws on the Series 2010-2 Letter of Credit or, to the extent such draws have been reimbursed, to the Series 2010-2 Collection Account.

 

 

 

  

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Section 4.18                      Application of Series 2010-2 Cash Liquidity Amount; Restrictions on Amounts Drawn Under Series 2010-2 Letter of Credit.

 

(a)           Application of Series 2010-2 Cash Liquidity Amount.  Notwithstanding anything to the contrary contained herein or in any other Related Document, funds in an amount not less than the Series 2010-2 Cash Liquidity Amount shall at all times, except as specified in this Section 4.18, be retained in the Series 2010-2 Cash Liquidity Account; provided, however, that upon the occurrence of any Event of Bankruptcy (without giving effect to any grace period granted in the definition thereof) with respect to DTAG or any Lessee and during the continuance of the related Insolvency Period (or on any date on or after the Series 2010-2 Final Maturity Date (or any date during the Series 2010-2 Rapid Amortization Period if requested by the Controlling Noteholder by written notice to the Trustee and the Issuer)), funds that have been retained in the Series 2010-2 Cash Liquidity Account pursuant to this Section 4.18(a) may be used as provided in this Section 4.18 to pay the following amounts in the following order of priority:  the fees of any successor Master Servicer, or the Back-Up Servicer and Back-Up Disposition Agent, as the case may be, and any other amounts payable under and as provided for in Section 4.8(c) of this Supplement, and interest in respect of the Series 2010-2 Notes as provided in Section 4.9(a), in each case then due and payable, pursuant to the Base Indenture as supplemented by this Supplement, in respect of the Series 2010-2 Notes; provided, further that, on any date on or after the Series 2010-2 Final Maturity Date (or any date during the Series 2010-2 Rapid Amortization Period if requested by the Controlling Noteholder by written notice to the Trustee and the Issuer), funds that have been retained in the Series 2010-2 Cash Liquidity Account pursuant to this Section 4.18(a) may also be used to pay the Series 2010-2 Invested Amount after payment of the foregoing amounts as set forth in Section 4.10(c)(iii).

 

(b)           Allocation of Certain Amounts to Series 2010-2 Cash Liquidity Account.  Notwithstanding anything to the contrary set forth in this Supplement, for the period beginning on the date of the occurrence with respect to DTAG or any Lessee of any Event of Bankruptcy (without giving effect to any grace period granted in the definition thereof) and ending on the earlier of (x) the date that is nine months after the occurrence of such an Event of Bankruptcy (without giving effect to any grace period granted in the definition thereof) and (y) the date on which the underlying case, application or petition with respect to such Event of Bankruptcy is withdrawn or dismissed or any stay thereunder in respect of the Trustee is lifted (any such period, an “Insolvency Period”), all Disposition Proceeds and Incentive Payments received by RCFC or the Trustee (including by deposit into the Series 2010-2 Collection Account) during the Insolvency Period, in an aggregate amount equal to the Insolvency Event Reallocated Amount, shall be deposited into the Series 2010-2 Cash Liquidity Account and shall be allocated and distributed solely as amounts on deposit in the Series 2010-2 Cash Liquidity Account are allocated pursuant to this Supplement.  Upon the expiration of such Insolvency Period, Disposition Proceeds and Incentive Payments shall be allocated and distributed in accordance with this Article 4 (exclusive of this Section 4.18(b)).

 

 

 

  

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(c)           Calculation of Permitted Principal Draw Amount and Accumulated Principal Draw Amount.  Upon the occurrence of any Event of Bankruptcy (without giving effect to any grace period granted in the definition thereof set forth in the Base Indenture) with respect to DTAG or any Lessee, the Master Servicer shall calculate the Permitted Principal Draw Amount as of the date of the occurrence of such Event of Bankruptcy, and thereafter, on each Business Day, and following each draw under the Series 2010-2 Letter of Credit, until the termination of the related Insolvency Period, the Master Servicer shall calculate the Permitted Principal Draw Amount then in effect, and shall inform the Trustee of such amount.  Following each draw on the Series 2010-2 Letter of Credit during any Insolvency Period, the Master Servicer shall calculate the Accumulated Principal Draw Amount after giving effect to such draw, and shall promptly inform the Trustee of such amount.

 

(d)           Funding of Cash Liquidity Account.  If at any time the Trustee shall determine that an Insolvency Period Commencement Date shall have occurred with respect to DTAG or any Lessee, the Trustee shall deposit into the Series 2010-2 Cash Liquidity Account any Collections that are required to be deposited therein pursuant to Article 4 of this Supplement, and shall at all times when required by this Supplement make withdrawals from the Series 2010-2 Cash Liquidity Account in the amounts and at times required under Article 4 of this Supplement.

 

Section 4.19                      Series 2010-2 Interest Rate Caps.

 

(a)           RCFC shall acquire one or more interest rate caps (each a “Series 2010-2 Interest Rate Cap”) from one or more Qualified Interest Rate Cap Counterparties.  At the time of the acquisition of the initial Series 2010-2 Interest Rate Caps, the aggregate notional amount of all Series 2010-2 Interest Rate Caps shall equal the Series 2010-2 Maximum Invested Amount as of the date hereof, and the aggregate notional amount of all Series 2010-2 Interest Rate Caps may be reduced from time to time in accordance with the notional amount schedule attached to the confirmation to the initial Series 2010-2 Interest Rate Cap or as otherwise agreed between the Controlling Noteholder and RCFC.  Unless otherwise agreed to by the Controlling Noteholder,  RCFC shall acquire one or more additional Series 2010-2 Interest Rate Caps in connection with any increase of the Series 2010-2 Maximum Invested Amount such that the aggregate notional amount of all Series 2010-2 Interest Rate Caps shall be an amount equal to the sum of (i) the aggregate notional amount of all Series 2010-2 Interest Rate Caps immediately prior to such increase and (ii) the amount of such increase.  The strike rate of each Series 2010-2 Interest Rate Cap shall not be greater than 5.0%. Each Series 2010-2 Interest Rate Cap shall have a term of at least until the Series 2010-2 Expected Final Payment Date.

 

(b)           If, at any time, a Series 2010-2 Interest Rate Cap Counterparty is not a Qualified Interest Rate Cap Counterparty, then such Series 2010-2 Interest Rate Cap Counterparty will be required, pursuant to the terms of the Series 2010-2 Interest Rate Cap, at the Series 2010-2 Interest Rate Cap Counterparty’s expense, to either (i) obtain a guarantee, letter of credit or provide other credit support to support its obligations under such Series 2010-2 Interest Rate Cap, in each case, acceptable to RCFC and the Controlling Noteholder or (ii) to post and maintain, in a segregated account, collateral pursuant to a credit support annex entered into in connection with the Series 2010-2 Interest Rate Cap (the “Credit Support Annex”).  If a Series 2010-2 Interest Rate Cap Counterparty fails so to (i) obtain a guarantee, letter of credit or provide other credit support to support its obligations under such Series 2010-2 Interest Rate Cap, in each case, acceptable to RCFC and the Controlling Noteholder or (ii) post and maintain collateral required to be posted by it pursuant to the applicable Credit Support Annex (taking into account any grace period specified therein), RCFC will promptly terminate such Series 2010-2 Interest Rate Cap (subject to the immediately succeeding proviso) and will obtain a replacement Series 2010-2 Interest Rate Cap on terms that are substantially the same as the terms of the terminated Series 2010-2 Interest Rate Cap (or such other terms as are reasonably satisfactory to the Controlling Noteholder) using the proceeds from (x) termination amounts paid to it by such

 

 

  

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Series 2010-2 Interest Rate Cap Counterparty and/or (y) realization upon collateral otherwise posted by the Series 2010-2 Interest Rate Cap Counterparty under the Credit Support Annex or, if such proceeds are insufficient, at its own expense with respect to such deficiency (with any such amounts being considered Carrying Charges and paid solely from Series 2010-2 Interest Collections); provided that RCFC shall not terminate a Series 2010-2 Interest Rate Cap until RCFC has entered into (or will simultaneously with such termination enter into) a replacement Series 2010-2 Interest Rate Cap.

 

(c)           Any collateral posted by a Series 2010-2 Interest Rate Cap Counterparty pursuant to the related Credit Support Annex shall be deposited into a single, segregated trust account established by the Trustee for the purpose of holding such collateral. The only permitted withdrawal from or application of collateral on deposit in, or otherwise to the credit of, any such account shall be (i) if such collateral is in the form of cash, investment of such collateral in permitted investments in accordance with the terms of the related Credit Support Annex, (ii) for application to obligations of such Series 2010-2 Interest Rate Cap Counterparty to RCFC under the related Series 2010-2 Interest Rate Cap if such Series 2010-2 Interest Rate Cap becomes subject to early termination in accordance with the terms of the Credit Support Annex (any funds or investments so withdrawn being further applied as Series 2010-2 Interest Rate Cap Proceeds) or (iii) to return of such collateral (including, if applicable, interest thereon) to such Series 2010-2 Interest Rate Cap Counterparty when and as required by such Credit Support Annex.

 

(d)           RCFC shall require all Series 2010-2 Interest Rate Cap Proceeds to be paid to, and the Trustee shall allocate all Series 2010-2 Interest Rate Cap Proceeds to, the Series 2010-2 Accrued Interest Account of the Series 2010-2 Collection Account.

 

Section 4.20                      Exchange of Vehicles.  On any date on which RCFC determines to dispose of a Group VI Vehicle to the Qualified Intermediary as a Group VI Exchanged Vehicle, RCFC shall either:

 

(i)           designate and direct the Trustee to transfer amounts in respect of the Substitute Group VI Exchanged Vehicle Proceeds equal to the Net Book Value as of such date of the Group VI Exchanged Vehicle to the Group VI Collection Account and treat such amounts as Disposition Proceeds of such Group VI Exchanged Vehicle;

 

(ii)           designate on such date an increase in Exchange Agreement Group VI Rights Value equal to the Exchange Proceeds of such Group VI Exchanged Vehicle and to the extent such increase in Exchange Agreement Group VI Rights Value is more or less than the Net Book Value of such Group VI Exchanged Vehicle, treat the difference as a Recovery or a Loss, as applicable, hereunder; or

 

 

 

  

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(iii)           substitute one or more Group VI Replacement Vehicles having an aggregate Net Book Value at least equal to the Exchange Proceeds of the Group VI Exchanged Vehicle to substitute for such Group VI Exchanged Vehicle as Group VI Collateral and Group VI Vehicles for purposes of the Related Documents and to the extent such Exchange Proceeds are more or less than the Net Book Value of such Group VI Exchanged Vehicles, treat the difference as a Recovery or a Loss, as applicable, hereunder.

 

RCFC shall provide written instruction to the Trustee and Master Collateral Agent upon tender of a Group VI Exchanged Vehicle to a Qualified Intermediary with respect to the designations, substitutions and transfers set forth in this Section.

 

Section 4.21                      Deficiencies in Payments.  Notwithstanding anything in this Supplement or the Base Indenture to the contrary, (i) any deficiency in payment to the Series 2010-2 Noteholders of the full Series 2010-2 Invested Amount of the Series 2010-2 Notes and any accrued and unpaid interest thereon shall remain due and shall be payable on the Series 2010-2 Final Maturity Date and thereafter to the Series 2010-2 Noteholders to the extent of recoveries, proceeds and other assets of RCFC allocable at any such time to the Series 2010-2 Notes, and (ii) any such deficiency in such full Series 2010-2 Invested Amount and accrued unpaid interest thereon shall be paid before any distribution in such period of any amounts in respect of the Retained Interest.  The Series 2010-2 Invested Amount shall be due and payable in full on the Series 2010-2 Final Maturity Date.

 

Section 4.22                      Appointment of Trustee to Hold Letter of Credit

 

.  The Trustee agrees to hold any Series 2010-2 Letter of Credit and to make draws thereon pursuant to the terms of such Series 2010-2 Letter of Credit and this Supplement.  The Trustee shall promptly follow the instructions of the Master Servicer to make a claim under the Series 2010-2 Letter of Credit or withdrawal from the Series 2010-2 Cash Collateral Account.

 

ARTICLE 5.

AMORTIZATION EVENTS

 

Section 5.1                      Series 2010-2 Amortization Events

 

.  In addition to the Amortization Events set forth in Section 8.1 of the Base Indenture and as modified as set forth below, the following shall be Amortization Events with respect to the Series 2010-2 Notes (without notice or other action on the part of the Trustee or any Series 2010-2 Noteholders):

 

(a)              a Series 2010-2 Enhancement Deficiency shall occur and continue for at least five (5) Business Days after any Determination Date after the Master Servicer obtains actual knowledge thereof;

 

(b)              the Series 2010-2 Letter of Credit, if any, shall not be in full force and effect and no substitute credit enhancement acceptable to the Series 2010-2 Required Noteholders or otherwise complying with Section 4.16(a)(ii) shall have been obtained, within two (2) Business Days (other than where the Series 2010-2 Letter of Credit has expired in accordance with its terms) of such event, unless (i) (x) the inclusion of the Series 2010-2 Letter of Credit Amount in the Series 2010-2 Enhancement Amount is not necessary for the Series 2010-2 Enhancement Amount to equal or exceed the Series 2010-2 Minimum Enhancement Amount and (y) the inclusion of the Series 2010-2 Letter of Credit Liquidity Amount in the Series 2010-2 Liquidity Amount is not necessary for the Series 2010-2 Liquidity Amount to equal or exceed the Series 2010-2 Minimum Liquidity Amount, or (ii) the Series 2010-2 Cash Collateral Account shall theretofore have been funded to the full extent required under Section 4.17(a);

 

 

  

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(c)              (i)  if all or a portion of the Series 2010-2 Cash Liquidity Amount is in the Series 2010-2 Excess Funding Account, the Series 2010-2 Excess Funding Account shall be subject to an injunction, estoppel or other stay or a lien (other than the lien of the Trustee under the Indenture) or (ii) from and after the funding of the Series 2010-2 Cash Collateral Account pursuant to Section 4.16 or 4.17 of this Supplement, the Series 2010-2 Cash Collateral Account shall be subject to an injunction, estoppel or other stay or a Lien (other than the Lien of the Trustee under the Indenture);

 

(d)              an Event of Bankruptcy shall have occurred with respect to any Series 2010-2 Letter of Credit Provider or any Series 2010-2 Letter of Credit Provider repudiates its related Series 2010-2 Letter of Credit or refuses to honor a proper draw thereon in accordance with the terms thereof and no substitute credit enhancement acceptable to the Series 2010-2 Required Noteholders or otherwise complying with Section 4.16(a)(ii) shall have been obtained within two (2) Business Days of such event, unless (i) (x) the inclusion of the Series 2010-2 Letter of Credit Amount in the Series 2010-2 Enhancement Amount is not necessary for the Series 2010-2 Enhancement Amount to equal or exceed the Series 2010-2 Minimum Enhancement Amount and (y) the inclusion of the Series 2010-2 Letter of Credit Liquidity Amount in the Series 2010-2 Liquidity Amount is not necessary for the Series 2010-2 Liquidity Amount to equal or exceed the Series 2010-2 Minimum Liquidity Amount, or (ii) the Series 2010-2 Cash Collateral Account shall theretofore have been funded to the full extent required under Section 4.17(a);

 

(e)              except to the extent permitted under the Indenture or any Related Document, any Related Document or any portion thereof shall not be in full force and effect, or enforceable, in accordance with its terms or RCFC, DTAG (including in its capacity as Master Servicer), or DTG Operations (including in its capacity as a Servicer) or any successor to DTG Operations in its capacity as Servicer shall so assert in writing;

 

(f)              a Lease Event of Default shall have occurred and be continuing under the Master Lease;

 

(g)              the Series 2010-2 Minimum Liquidity Amount shall exceed the Series 2010-2 Liquidity Amount for a period of five (5) Business Days;

 

(h)              an Asset Amount Deficiency shall have occurred and be continuing for a period of five (5) Business Days after the Master Servicer obtains actual knowledge thereof;

 

 

 

  

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(i)              RCFC shall fail to acquire or maintain in force Series 2010-2 Interest Rate Caps at the times and in the notional amounts required by the terms of Section 4.19 of this Supplement other than as a result of a termination of a Series 2010-2 Interest Rate Cap if (x) the related Series 2010-2 Interest Rate Cap Counterparty and/or its Affiliates are the sole Series 2010-2 Noteholders and (y) such Series 2010-2 Interest Rate Cap Counterparty has failed to pay any termination payment due and payable by such Series 2010-2 Interest Rate Cap Counterparty in accordance with the terms of such Series 2010-2 Interest Rate Cap;

 

(j)              a Change in Control (other than pursuant to a Permitted Change in Control Transaction) or an Issuer Change in Control shall have occurred;

 

(k)              (i) the Issuer defaults in the payment of any interest on the Series 2010-2 Notes, or other amount included in the Series 2010-2 Accrued Interest Amount (including, without limitation, amounts payable pursuant to the Series 2010-2 Note Purchase Agreement) when the same becomes due and payable, or (ii) the Issuer fails to pay the applicable Series 2010-2 Controlled Amortization Amount on any Payment Date during the Series 2010-2 Controlled Amortization Period (excluding, for the avoidance of doubt, the payment described in clause (s) below), and in each case of clause (i) or (ii), such default continues for a period of three (3) Business Days;

 

(l)              the Trustee shall for any reason cease to have a valid and perfected first priority security interest in the Group VI Collateral or any other material Collateral pledged to secure the Series 2010-2 Notes or DTAG, DTG Operations, RCFC or any their Affiliates so asserts in writing;

 

(m)              the occurrence of a Servicer Default; provided, that if a Servicer Default occurs under clauses (i) or (iv) of the definition of “Servicer Default,” such Servicer Default shall not constitute an Amortization Event unless and until the Trustee takes any action to terminate the Servicers;

 

(n)              the occurrence and continuance of a Servicer Event of Default;

 

(o)              RCFC fails to comply with any of its other agreements or covenants in, or provisions of, the Series 2010-2 Notes, the Base Indenture, this Series Supplement, any other Related Document, the Back-Up Disposition Agreement or the Back-Up Servicing Agreement and the failure to so comply materially and adversely affects the interests of the Series 2010-2 Noteholders and continues to materially and adversely affect the interests of the Series 2010-2 Noteholders for a period of thirty (30) days after the earlier of (i) the date on which RCFC obtains knowledge thereof or (ii) the date on which written notice of such failure, requiring the same to be remedied, shall have been given to RCFC by the Trustee;

 

(p)              any representation made by RCFC in the Base Indenture, this Series Supplement, any other Related Document, the Back-Up Disposition Agreement or the Back-Up Servicing Agreement is false in any material respect (or to the extent such representation is qualified by materiality, is false) and such false representation materially and adversely affects the interests of the Series 2010-2 Noteholders and the circumstance or condition giving rise to such false representation is not cured for a period of thirty (30) days after the earlier of (i) the date on which RCFC obtains knowledge thereof or (ii) the date that written notice thereof is given to RCFC by the Trustee;

 

  

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(q)              RCFC fails to comply with any of its other agreements or covenants in Article 6 hereof and, in the case of Sections 6.1 and 6.2, such failure continues for two (2) Business Days after the Master Servicer obtains actual knowledge thereof;

 

(r)              the Master Servicer fails to deliver a Third-Party Market Value Report pursuant to Section 8.7(a) on a Third-Party Market Value Reporting Date (i) for two consecutive Third-Party Market Value Reporting Dates and such failure is continuing for five (5) Business Days following the second such Third-Party Market Value Reporting Date or (ii) three or more times during the term of this Supplement and such failure is continuing for five (5) Business Days following the third such Third-Party Market Value Reporting Date;

 

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

 

(t)              an Amortization Event with respect to any other Group VI Series of Notes shall have occurred;

 

(u)              the Issuer shall fail to notify the Trustee of the occurrence of any of the events described in clauses (a) through (t) above (after any applicable grace period) within two (2) Business Days after obtaining actual knowledge thereof; or

 

(v)              except to the extent the Controlling Noteholder may otherwise agree, or shall fail to comply with Section 8.10 hereof, the Issuer shall fail to agree upon financial covenant(s) of the Permitted Change in Control Counterparty that shall constitute “Permitted Change in Control Counterparty Financial Covenants” and amend such definition to incorporate such financial covenant(s) pursuant to Sections 8.10 and 8.5(b)(iii) prior to the ninety-first (91st) day following a Permitted Change in Control Transaction.

 

In the case of any of the events described in clause (a) or (f) (with respect solely to the occurrence of Lease Events of Default described in Sections 17.1.1(i), 17.1.2, and 17.1.5 of the Master Lease), an Amortization Event shall be deemed to have occurred with respect to the Series 2010-2 Notes, after the grace period described therein, immediately without notice or other action on the part of the Trustee or the Series 2010-2 Noteholders.  In the case of any event described in clauses (b), (c), (d), (e), (f) (with respect to the occurrence of Lease Events of Default not described in the immediately preceding sentence), (g), (h), (i), (j), (k), (l), (m), (n), (o), (p), (q), (r), (s), (t), (u) and (v) above, an Amortization Event shall be deemed to have occurred with respect to the Series 2010-2 Notes only if, after any applicable grace period described in such clauses, either the Trustee, by written notice to RCFC, or the Series 2010-2 Required Noteholders, by written notice to RCFC, the Trustee and the Series 2010-2 Noteholders, declare that, as of the date of such notice, an Amortization Event has occurred.

 

 

 

  

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Section 5.2                      Waiver of Past Events.  Subject to Section 11.2 of the Base Indenture, Series 2010-2 Noteholders holding 100% of the Series 2010-2 Invested Amount, by written notice to the Trustee, may waive any existing Potential Amortization Event or Amortization Event; provided, however, that notwithstanding the foregoing, Series 2010-2 Noteholders holding 66 2/3% of the Series 2010-2 Invested Amount, by written notice to the Trustee may waive an Amortization Event described in clause (i), (o) or (p) of Section 5.1 of this Supplement, or a Potential Amortization Event relating thereto, (other than, in the case of clause (o), with respect to any agreement, covenant or provision in the Series 2010-2 Notes, the Indenture, this Supplement or any other Related Document the amendment or modification of which requires the consent of a greater percentage of Noteholders or which otherwise prohibits RCFC from taking action without the consent of such greater percentage, in which case such Amortization Event may be waived by such percentage of Series 2010-2 Noteholders).

 

Section 5.3                      Rights of the Trustee upon Amortization Event or Certain Events of Default.

 

Section 8.2(c) of the Base Indenture shall be read in its entirety as provided in the Base Indenture, provided that for purposes of the Series 2010-2 Notes and this Supplement and any other Group VI Series of Notes, the first sentence of Section 8.2(c) of the Base Indenture shall be modified as permitted by Section 11.1 of the Base Indenture and shall read as follows:

“If a Liquidation Event of Default or a Limited Liquidation Event of Default shall have occurred and be continuing with respect to a Group, the Trustee may, and at the written direction of the Required Beneficiaries of the related Group (in the case of a Liquidation Event of Default) or at the written direction of the Required Noteholders with respect to the affected Series of Notes of such Group (in the case of a Limited Liquidation Event of Default) shall, direct RCFC and/or the Master Collateral Agent to exercise (and RCFC agrees to exercise) all its rights, remedies, powers, privileges and claims with respect to the Collateral and Master Collateral.”

Section 5.4                      Servicer Defaults.

 

Upon the occurrence of a Servicer Default, the Trustee, with respect to a Servicer Default described in clauses (ii) or (iii) of the definition of Servicer Default, shall and, with respect to a Servicer Default described in clauses (i) or (iv) of the definition of Servicer Default, upon the direction of the Required Beneficiaries, shall, in each case (i) provide to the Back-Up Servicer the notice required under the Back-Up Servicing Agreement to direct the Back-Up Servicer to commence the Back-up Servicing Obligations (as defined in the Back-Up Servicing Agreement), (ii) provide the Back-Up Disposition Agent the notice required under the Back-Up Disposition Agent Agreement to direct the Back-Up Disposition Agent to commence the duties set out in Exhibit A under the heading “Duties after the Action Notice Effective Date” with respect to the Master Lease and related Vehicles leased thereunder, and (iii) take any other actions necessary to transfer the servicing obligations of the Master Servicer and each Servicer, in each case with respect to the duties and obligations of the Master Servicer and Servicers with respect to the Group VI Series of Notes expressly required to be assumed by the Back-Up Disposition Agent and Back-Up Servicer pursuant to such agreements.

 

 

  

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ARTICLE 6.

COVENANTS

 

Section 6.1                      Series 2010-2 Minimum Subordinated Amount.  RCFC shall maintain the Series 2010-2 Available Subordinated Amount in an amount greater than or equal to the Series 2010-2 Minimum Subordinated Amount.

 

Section 6.2                      Series 2010-2 Minimum Liquidity Amount.  RCFC shall keep the Series 2010-2 Cash Liquidity Amount on deposit in the Series 2010-2 Cash Liquidity Account in an amount equal to the Series 2010-2 Minimum Liquidity Amount until such time as a Series 2010-2 Letter of Credit is in effect.  If any Series 2010-2 Letter of Credit is in effect after the Series 2010-2 Closing Date, RCFC shall maintain the Series 2010-2 Letter of Credit Amount (or such other substitute credit enhancement acceptable to the Controlling Noteholder and otherwise complying with Section 4.16(a)(ii)) in an amount greater than or equal to the Series 2010-2 Minimum Letter of Credit Amount.

 

Section 6.3                      Financed Vehicles.  RCFC shall not lease any Financed Vehicles under the Financing Lease without the prior written consent of the Holders of 100% of each outstanding Group VI Series of Notes and each Enhancement Provider with respect to each outstanding Group VI Series of Notes.

 

Section 6.4                      Other Series.  RCFC shall not issue any Series of Notes, other than the Series 2010-2 Notes, as a Group VI Series of Notes without the prior written consent of the Series 2010-2 Required Noteholders or as otherwise provided under the Series 2010-2 Note Purchase Agreement.  In addition to the requirements in the Base Indenture, the issuance of any such Series of Notes shall also require the delivery of an Opinion of Counsel, subject to the assumptions and qualifications stated therein, and in a form reasonably acceptable to the Trustee, dated the applicable Closing Date of such Series of Notes, substantially to the effect that the issuance of such Series will not adversely affect the Federal income tax characterization of Increases under the Series 2010-2 Notes made on or after such applicable Closing Date.

 

ARTICLE 7.

SERIES 2010-2 NOTES

 

Section 7.1                      Form of Series 2010-2 Notes.

 

Series 2010-2 Notes will be issued in fully registered form, substantially in the form set forth in Exhibit A to this Supplement, with such legends as may be applicable thereto as set forth in such Exhibit A, and will be sold initially to and registered in the name of the Initial Note Purchaser as an institutional accredited investor within the meaning of Regulation D under the Securities Act in reliance on an exemption from the registration requirements of the Securities Act and thereafter may be transferred solely to RCFC or to qualified institutional buyers within the meaning of, and in reliance on, Rule 144A under the Securities Act, and shall be duly executed by the Issuer and authenticated by the Trustee in the manner set forth in Section 2.4 of the Base Indenture.  The Series 2010-2 Notes are not permitted to be transferred, assigned, exchanged or otherwise pledged or conveyed except in compliance with the terms of the Base Indenture, this Supplement, the Series 2010-2 Note Purchase Agreement and the provisions of the Series 2010-2 Notes; provided, that transfer restrictions, transferee representations, legends and related provisions contained in the Base Indenture relevant to transfers of Notes after initial issuance thereof that are inconsistent with the provisions of this Supplement, the Series 2010-2 Note Purchase Agreement or the Series 2010-2 Notes shall be inapplicable in respect of the Series 2010-2 Notes.  The Series 2010-2 Notes shall bear a face amount equal in the aggregate to the Series 2010-2 Maximum Invested Amount, and shall be initially issued in a principal amount equal in the aggregate to the Series 2010-2 Initial Invested Amount.  The Trustee shall, or shall

 

 

  

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cause the Note Registrar to, record in the Note Register any Increases or Decreases with respect to the Series 2010-2 Invested Amount represented by each Series 2010-2 Note such that the principal amount of the Series 2010-2 Notes Outstanding accurately reflects all such Increases and Decreases.  The Series 2010-2 Notes shall be issued in minimum denominations of $100,000 and integral multiples of $1,000 in excess thereof.

 

ARTICLE 8.

GENERAL

 

Section 8.1                      Exhibits.  The following exhibits attached hereto supplement the exhibits included in the Indenture.

 

	
Exhibit A:

	
Form of Series 2010-2 Note

	
Exhibit B:

	
Form of Demand Note

	
Exhibit C:

	
Form of Notice of Series 2010-2 Lease Payment Losses

	
Exhibit D:

	
Form of Monthly Noteholders’ Statement

Section 8.2                      Ratification of Base Indenture.  As supplemented by this Supplement and except as specified in 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 8.3                      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 8.4                      Governing Law.  THIS SUPPLEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAW (INCLUDING, WITHOUT LIMITATION, THE UCC) OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO THE PROVISIONS THEREOF REGARDING CONFLICTS OF LAWS OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HERETO SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAW.

 

Section 8.5                      Amendments.

 

(a)           This Supplement may be modified, amended or the terms hereof waived from time to time in accordance with the amendment procedures set forth in Article 11 of the Base Indenture (except as otherwise provided under Section 5.2 hereof); provided, however, that if, pursuant to the terms of the Base Indenture or this Supplement, the consent of the Required Noteholders is required for an amendment or modification of this Supplement or waiver of any of the terms of this Supplement, such requirement shall be satisfied if such amendment, modification or waiver is consented to by the Series 2010-2 Required Noteholders.

 

 

 

  

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(b)           Notwithstanding anything to the contrary in the Base Indenture or this Supplement, (i) this Supplement may be amended or modified from time to time, solely with the consent of the Controlling Noteholder, RCFC, DTAG and the Trustee to amend the following definitions:  “Maximum Manufacturer Percentage” (and any schedules to the Indenture setting forth such percentage), “Maximum Used Vehicle Percentage,” “Measurement Month,” “Measurement Month Average” and “Market Value Adjustment Percentage” and to make changes related to such amendments, (ii) this Supplement may be amended to provide for and accommodate financing Group VI Vehicles and other Collateral or Master Lease Collateral that may be the subject of a like-kind exchange program without the consent of any Person other than the Controlling Noteholder and (iii) this Supplement may be amended, solely with the consent of the Controlling Noteholder and RCFC (with notice to the Trustee), upon or after a Permitted Change in Control Transaction to insert any financial covenant(s) that will thereafter constitute a “Permitted Change in Control Counterparty Financial Covenant” hereunder.

 

(c)           Section 11.2 of the Base Indenture shall be read in its entirety as provided in the Base Indenture, provided that for purposes of the Series 2010-2 Notes and this Supplement and any other Group VI Series of Notes, Section 11.2(ii) of the Base Indenture shall be modified as permitted by Section 11.1 of the Base Indenture and shall read as follows:

 

“(ii)           any amendment, waiver or other modification that would (a) extend the due date for, or reduce the amount of any scheduled repayment or prepayment of principal of or interest on any Note (or reduce the Principal Amount of or rate of interest on any Note) shall require the consent of each affected Noteholder; (b) approve the assignment or transfer by RCFC of any of its rights or obligations hereunder will require the consent of each Noteholder; (c) release RCFC of any obligation hereunder will require the consent of each Noteholder; (d) affect adversely the interests, rights or obligations of any Noteholder individually in comparison to any other Noteholder will require the consent of such Noteholder; (e) release any Collateral other than in accordance with the terms hereof and of the Related Documents will require the consent of each affected Noteholder; or (f) amend or otherwise modify any Amortization Event will require the consent of each affected Noteholder.”

 

Section 8.6                      Monthly Noteholders’ Statement.

 

For purposes of the Series 2010-2 Notes, Section 5.4 of the Base Indenture shall be modified as permitted by Section 11.1(f) of the Base Indenture and shall read as follows:

 

Section 5.4                      Monthly Noteholders’ Statement.  The Master Servicer shall, with cooperation of the Trustee, prepare a monthly statement substantially in the form of Exhibit D of the Series Supplement for the Series 2010-2 Notes (each, a “Monthly Noteholders’ Statement”).  The Master Servicer shall deliver to the Trustee and the Series 2010-2 Interest Rate Cap Counterparty each such Monthly Noteholders’ Statement with respect to the Series 2010-2 Notes on or before the fourth Business Day before each Payment Date (unless otherwise agreed to by the Trustee), in a Microsoft Excel electronic file (or similar electronic file), setting forth, inter alia, the following information (which, in the case of clauses (iv), (v) and (vi) below, shall be expressed as a dollar amount per $1,000 of the original Principal Amount of the Series 2010-2 Notes and, in the case of clause (ix) shall be stated on an aggregate basis and on the basis of a dollar amount per $1,000 of the original Principal Amount of the Series 2010-2 Notes):

 

 

  

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(i)

	
the aggregate amount of Series 2010-2 Interest Collections processed since the prior Payment Date, the aggregate amount of Principal Collections processed during the Related Month and the aggregate amount of Collections processed during such periods;

 

	
  

	
(ii)

	
the Series 2010-2 Accrued Interest Amount, the Series 2010-2 Interest Amount and the Series 2010-2 Interest Rate Cap Proceeds for the next Payment Date;

 

	
  

	
(iii)

	
the Series 2010-2 Invested Percentage with respect to Series 2010-2 Interest Collections and Principal Collections for the Series 2010-2 Notes on the last day of the Related Month;

 

	
  

	
(iv)

	
the total amount to be distributed to Noteholders of Series 2010-2 Notes on the next succeeding Payment Date;

 

	
  

	
(v)

	
the amount of the distribution allocable to principal on the Series 2010-2 Notes on the next Payment Date;

 

	
  

	
(vi)

	
the amount of the distribution allocable to interest on the Series 2010-2 Notes on the next Payment Date;

 

	
  

	
(vii)

	
the amount of any drawing under any Enhancement, if any, for Series 2010-2 Notes for the next Payment Date;

 

	
  

	
(viii)

	
the amount of the Series 2010-2 Monthly Servicing Fee, the Series 2010-2 Monthly Supplemental Servicing Fee, the Group VI Monthly Servicing Fee and the Group VI Supplemental Servicing Fee for the next Payment Date;

 

	
  

	
(ix)

	
the Series 2010-2 Enhancement Amount, the Series 2010-2 Enhancement Deficiency, if any, the Series 2010-2 Minimum Enhancement Amount, the Series 2010-2 Required Enhancement Percentage, the Series 2010-2 Liquidity Amount, the Series 2010-2 Minimum Liquidity Amount, the Series 2010-2 Cash Liquidity Amount, the Series 2010-2 Letter of Credit Amount, if any, the Series 2010-2 Letter of Credit Liquidity Amount, if any, the Series 2010-2 Minimum Letter of Credit Amount, the Series 2010-2 Available Subordinated Amount, the Series 2010-2 Minimum Subordinated Amount and the Series 2010-2 Cash Collateral Account Surplus, in each case, as of the last day of the Related Month after giving effect to any expected drawings on any applicable Enhancement and payments to the applicable Enhancement Provider on the next Payment Date;

 

	
  

	
(x)

	
the ratio of the amount available under the applicable Enhancement to the Series 2010-2 Invested Amount as of the next Payment Date after giving effect to any expected drawings on the applicable Enhancement and payments to the applicable Enhancement Provider on the next Payment Date;

 

 

 

  

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(xi)

	
the amount of any LOC Disbursements expected to be made with respect to the next Payment Date;

 

	
  

	
(xii)

	
the Series 2010-2 Monthly Interest Shortfall, if any, with respect to the next Payment Date;

 

	
  

	
(xiii)

	
the Series 2010-2 Invested Amount, the Series 2010-2 Invested Percentage, the Series 2010-2 Maximum Invested Amount and the Group VI Aggregate Invested Amount with respect to the next Payment Date;

 

	
  

	
(xiv)

	
the Retained Interest Amount, if any, and the Retained Interest Percentage with respect to all outstanding Group VI Series of Notes as of the close of business on the last day of the Related Month;

 

	
  

	
(xv)

	
whether, to the knowledge of the Master Servicer, any Liens exist with respect to any of the Collateral which are not permitted under the Related Documents;

 

	
  

	
(xvi)

	
whether, to the knowledge of the Master Servicer, any Lease Event of Default or Servicer Default has occurred;

 

	
  

	
(xvii)

	
whether, to the knowledge of the Master Servicer, any Amortization Event or Potential Amortization Event with respect to the Series 2010-2 Notes has occurred;

 

	
  

	
(xviii)

	
the Required Asset Amount, the Aggregate Asset Amount, the amount of any Asset Amount Deficiency and the Exchange Agreement Group VI Rights Value, in each case, as of the last day of the Related Month;

 

	
  

	
(xix)

	
the Net Book Value of Vehicles from each Manufacturer and the rating of each such Manufacturer;

 

	
  

	
(xx)

	
the number of Group VI Vehicles of each Manufacturer as of the last day of the Related Month;

 

	
  

	
(xxi)

	
the average age of all Vehicles as of the last day of the Related Month;

 

	
  

	
(xxii)

	
the average total monthly Depreciation Charges per Vehicle during the Related Month;

 

	
  

	
(xxiii)

	
(x) the Market Value Adjustment Percentage as of the related Determination Date, (y) the Measurement Month Average and the aggregate Market Value of Non-Program Vehicles as of the last day of the Related Month and (z) the Measurement Month Average used to determine the Market Value Adjustment Percentage as of the related Determination Date if different than the Measurement Month Average as of the last day of the Related Month;

 

 

  

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(xxiv)

	
the Third-Party Market Value Adjustment Percentage, if any, as of the immediately preceding Third-Party Market Value Determination Date (and, if such date is a Third-Party Market Value Determination Date, such date); and

 

	
  

	
(xxv)

	
any other information required to be included in the Monthly Noteholders’ Statement pursuant to the terms of Series Supplement for the Series 2010-2 Notes.

 

On each Payment Date for the Series 2010-2 Notes, the Trustee shall forward to each Noteholder of record of Series 2010-2 Notes and to the Paying Agent (if other than the Trustee) the Monthly Noteholders’ Statement for the Series 2010-2 Notes prepared by the Master Servicer.

 

Section 8.7                      Third-Party Market Value.

 

(a)           The Master Servicer shall deliver to the Controlling Noteholder on each Third-Party Market Value Reporting Date, a Third-Party Market Value Report.

 

(b)           On or before the fifth day (or if such day is not a Business Day, the next succeeding Business Day) preceding each Third-Party Market Value Determination Date, or such later date as the Master Servicer may reasonably agree, the Controlling Noteholder shall notify RCFC and the Master Servicer of the applicable Third-Party Market Value Adjustment Percentage, if any, for such Third-Party Market Value Determination Date.  The Controlling Noteholder shall be responsible for all costs and expenses associated with its determination of the Third-Party Market Value Adjustment Percentage and shall have no obligation or responsibility to any other Noteholder in respect of such determination.  The Controlling Noteholder may, at any time in its sole discretion upon notice to the Master Servicer, suspend or terminate determination of the Third-Party Market Value Percentage, in which event the Third-Party Market Value Adjustment Percentage shall be deemed at all times thereafter to be zero.

 

(c)           With respect to any Third-Party Market Value Determination Date:

 

(i)           if (A) the Master Servicer delivers a Third-Party Market Value Report on or prior to the related Third-Party Market Value Reporting Date and (B) the Controlling Noteholder fails to notify RCFC and the Master Servicer of the Third-Party Market Value Adjustment Percentage on or prior to the date specified in clause (b) of this Section 8.7, then (x) the Third-Party Market Value Adjustment Percentage for such Third-Party Market Value Determination Date shall be deemed to be zero and (y) except as the Master Servicer and the Controlling Noteholder may otherwise agree, the last day of the calendar month in which such Third-Party Market Value Determination Date occurs shall be deemed to be a “Third-Party Market Value Date,” the Determination Date occurring in the immediately succeeding calendar month shall be deemed to be a “Third-Party Market Value Determination Date” and the sixth day of such immediately succeeding calendar month (or, if such day is not a Business Day, the next succeeding Business Day) shall be deemed to be a “Third-Party Market Value Reporting Date.”

 

(ii)           if (A) the Master Servicer fails to deliver a Third-Party Market Value Report on or prior to the related Third-Party Market Value Reporting Date and (B) the Controlling Noteholder fails to notify RCFC and the Master Servicer of the Third-Party Market Value Adjustment Percentage on or prior to the date specified in clause (b) of this Section 8.7, then, except as the Master Servicer and the Controlling Noteholder may otherwise agree, (x) the Third-Party Market Value Adjustment Percentage for such Third-Party Market Value Determination Date shall be deemed to be the same Third-Party Market Value Adjustment Percentage, if any, as of the immediately preceding Third

 

  

75

  

Party Market Value Determination Date and (y) the last day of the calendar month in which such Third-Party Market Value Determination Date occurs shall be deemed to be a “Third-Party Market Value Date,” the Determination Date occurring in the immediately succeeding calendar month shall be deemed to be a “Third-Party Market Value Determination Date” and the sixth day of such immediately succeeding calendar month (or, if such day is not a Business Day, the next succeeding Business Day) shall be deemed to be a “Third-Party Market Value Reporting Date”.

Section 8.8                      Trustee Directions.

 

For the avoidance of doubt, all directions provided to the Trustee hereunder shall be in writing.

 

Section 8.9                      Additional UCC Representations.

 

Without limiting any other representation or warranty given by RCFC in the Indenture or the Master Lease, the Issuer hereby makes the representations and warranties set forth in Annex I hereto for the benefit of the Trustee and the Series 2010-2 Noteholders, in each case, as of the date hereof.  The Issuer shall provide notice to each nationally recognized rating agency rating an Outstanding Series of Notes at the request or with the consent of the Issuer of any waiver of the representations and warranties set forth on Annex I hereto.  The representations and warranties set forth on Annex I hereto shall survive the termination of this Series Supplement.

 

Section 8.10                      Servicer Financial Covenant Event of Default.

 

(a)             Upon the occurrence of a Permitted Change in Control Transaction, the Issuer and the Controlling Noteholder shall act reasonably and in good faith for a period of up to ninety (90) days following the date of such Permitted Change in Control Transaction to (a) agree upon any financial covenant(s) applicable to such Permitted Change in Control Counterparty pursuant to then-existing financing agreements that shall constitute a “Permitted Change in Control Counterparty Financial Covenant” hereunder and (b) amend this Supplement accordingly pursuant to Section 8.5(b)(iii).

 

Section 8.11                      Termination.

 

The RCFC Obligations with respect to this Supplement shall not be deemed to be fully satisfied for purposes of Section 12.15 of the Base Indenture, and this Supplement shall not terminate, until no Group VI Collateral remains and all of the applicable proceeds thereof have been allocated in accordance with Section 4.7(e) hereof.

 

 

[Remainder of Page Intentionally Blank]

 

 

  

76

  

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

 

RENTAL CAR FINANCE CORP.

 

By:_________________________________________________ 

Pamela S. Peck

Vice President and Treasurer

 

DEUTSCHE BANK TRUST COMPANY AMERICAS, as Trustee

 

By:_________________________________________________

Name:

Title:

 

By:_________________________________________________

Name:

Title:

 

Accepted and Acknowledged by:

 

DOLLAR THRIFTY AUTOMOTIVE GROUP, INC.,

 

as Master Servicer

 

 

	
By:______________________________________

	 

 

	
  

	
Michael H. McMahon

	
  

	
Assistant Treasurer

 

  

  

  

SCHEDULE 1

 

Schedule of Maximum Manufacturer Percentages of Group VI Vehicles

 

	
 

Eligible Manufacturer

	
Maximum Manufacturer 

Percentage*

	  	  
	
Chrysler

	
60%

	
Ford

	
60%

	
Toyota

	
60%

	
General Motors

	
60%

	
Honda

	
60%

	
Nissan

	
60%

	
Volkswagen

	
60%

	
Mazda

	
Up to 35%

	
Subaru

	
Up to 35%

	
Mitsubishi

	
Up to 25%

	
Kia

	
Up to 25% (1)

	
Hyundai

	
Up to 25% (1)

	
Suzuki

	
Up to 10%

	
Isuzu

	
Up to 10%

	
BMW

	
Up to 10%

	
Jaguar

	
Up to 10%

	
Mercedes-Benz

	
Up to 10%

	
(1)

	
The combined percentage of Group VI Vehicles manufactured by Kia or Hyundai shall not exceed twenty-five percent (25%) of the Aggregate Asset Amount.

 

	
*

	
As a percentage of the Aggregate Asset Amount.

 

  

  

  

ANNEX I

 

Additional UCC Representations

 

General

	
1.

	

(a)  The Base Indenture creates a valid and continuing security interest (as defined in the applicable UCC) in the Collateral in favor of the Trustee for the benefit of the Series 2010-2 Noteholders; (b) the Master Collateral Agency Agreement creates a valid and continuing security interest (as defined in the applicable UCC) in the Group VI Master Collateral in favor of the Master Collateral Agent for the benefit of the Beneficiaries; and (c) the Series 2010-2 Series Supplement creates a valid and continuing security interest (as defined in the applicable UCC) in (i) the Master Lease Collateral and (ii) (A) the Demand Note and (B) all of RCFC’s right, title and interest in the Series 2010-2 Interest Rate Caps and all proceeds thereof and all proceeds of any and all of the items described in the preceding clauses (A) and (B) (the collateral described in clauses (A) through (C), the “Series Collateral”) in favor of the Trustee for the benefit of the Series 2010-2 Noteholders and in the case of each of clauses (a), (b) and (c) is prior to all other Liens on such Collateral, Master Collateral and Series Collateral, as applicable, except for Permitted Liens (as defined in Section 25.3 of the Master Lease), and is enforceable as such against creditors and purchasers from the Issuer.

 

	
2.

	
Each of the Issuer and the Lessee Grantors owns and has good and marketable title to the respective Collateral, Group VI Master Collateral and Series Collateral free and clear of any lien, claim, or encumbrance of any Person except for Permitted Liens (as defined in Section 25.3 of the Master Lease).

Characterization

	
3.

	
(a) The Demand Note constitutes an “instrument” within the meaning of the applicable UCC; (b) The original executed counterpart No. 1 of the Master Lease constitutes “tangible chattel paper” within the meaning of the 

applicable UCC; and (c) all Series 2010-2 Interest Rate Caps in respect of Group VI Vehicles, Manufacturer Receivables and the Group VI Assignment of Exchange Agreement constitute "accounts" or "general intangibles" within the meaning of the applicable UCC.

	
 

Perfection by filing

	
4.

	
The Issuer has caused or will have caused, within ten days after the Series 2010-2 Closing Date, the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under applicable law in order to perfect (a) the security interest in any accounts and general intangibles included in the Collateral granted to the Trustee, (b) the security interest in any accounts and general intangibles included in the Group VI Master Collateral granted to the Master Collateral Agent and (c) the security interest in any accounts and general intangibles included in the Series Collateral granted to the Trustee.

Perfection by Possession

	
5.

	
The original executed counterpart No. 1 of the Master Lease has been delivered to the Trustee.  All original copies of the Demand Note that constitute or evidence the Demand Note have been delivered to the Trustee.

 

  

  

  

      Priority

	
6.

	
Other than the security interest granted to the Trustee pursuant to the Indenture and the security interest granted to the Master Collateral Agent pursuant to the Master Collateral Agency Agreement, the Issuer has not pledged, assigned, sold or granted a security interest in, or otherwise conveyed, any of the Collateral, the Group VI Master Collateral or the Series Collateral.  The Issuer has not authorized the filing of and is not aware of any financing statements against the Issuer that include a description of collateral covering the Collateral, Group VI Master Collateral or the Series Collateral other than any financing statement relating to the security interests granted to the Trustee and the Master Collateral Agent, as secured parties under the Indenture and the Master Collateral Agency Agreement, respectively, or that has been terminated.  The Issuer is not aware of any judgment or tax lien filings against the Issuer.

	
7.

	
The original executed counterpart No. 1 of the Master Lease does not contain any marks or notations indicating that it has been pledged, assigned or otherwise conveyed to any Person other than the Trustee.  The Demand Note does not contain any marks or notations indicating that it has been pledged, assigned or otherwise conveyed to any Person other than the Trustee.

 

 

 

  

  

  

EXHIBIT A

 

Form of Series 2010-2 Note

 

RENTAL CAR ASSET BACKED VARIABLE FUNDING NOTE, SERIES 2010-2

 

REGISTERED

 

No. R-1

 

SEE REVERSE FOR CERTAIN CONDITIONS

 

THIS NOTE 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 NOTE, AGREES FOR THE BENEFIT OF RENTAL CAR FINANCE CORP., AN OKLAHOMA CORPORATION (THE “COMPANY”), THAT THIS 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) OR (2) TO A PERSON WHO 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, IN EACH CASE IN COMPLIANCE WITH THE INDENTURE REFERRED TO BELOW AND THE RELATED NOTE PURCHASE AGREEMENT AND ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION.  THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY TRANSFEREE OF THIS NOTE OF THE TRANSFER RESTRICTIONS SET FORTH ABOVE.

 

EACH NOTEHOLDER, BY ACCEPTANCE OF THIS NOTE, REPRESENTS AND WARRANTS THAT (A) EITHER (I) IT IS NOT, AND IS NOT ACQUIRING SUCH NOTE WITH THE ASSETS OF, A PLAN OR ACCOUNT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR AN ENTITY THAT IS DEEMED TO HOLD ASSETS OF ANY OF THE FOREGOING, OR (II) THE ACQUISITION AND HOLDING OF SUCH NOTE OR INTEREST THEREIN BY THE NOTEHOLDER, THROUGHOUT THE PERIOD THAT IT HOLDS SUCH NOTE OR INTEREST THEREIN, WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, BECAUSE THE PURCHASE AND HOLDING OF SUCH NOTE OR INTEREST THEREIN (A) IS NOT, AND WILL NOT BECOME, SUBJECT TO SUCH LAWS OR (B) IS COVERED BY AN EXEMPTION FROM ALL APPLICABLE PROHIBITED TRANSACTIONS, ALL OF THE CONDITIONS OF WHICH ARE AND WILL BE SATISFIED UPON ITS ACQUISITION OF, AND THROUGHOUT THE TERM THAT IT

 

  

  

  

HOLDS, SUCH NOTE OR INTEREST THEREIN, AND (B) IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER SUCH NOTE IN VIOLATION OF THE FOREGOING.

 

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AND SUBJECT TO INCREASES AND DECREASES AS SET FORTH HEREIN AND IN THE INDENTURE.  ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

 

 

  

A-2

  

RENTAL CAR FINANCE CORP.

 

RENTAL CAR ASSET BACKED VARIABLE FUNDING NOTE, SERIES 2010-2

 

RENTAL CAR FINANCE CORP., an Oklahoma corporation (herein referred to as the “Company”), for value received, hereby promises to pay to _____________, (the “Noteholder”), or its registered assigns, the aggregate unpaid principal amount shown on the schedule attached hereto (and any continuation thereof), which amount shall be payable in the amounts and at the times set forth in the Indenture (as defined on the reverse side of this Note), provided, however, that the entire unpaid principal amount of this Note shall be due on the Series 2010-2 Final Maturity Date (unless extended in writing by the parties to the Indenture and the Noteholder), subject to the terms of the Indenture.  The Company will pay interest on this Note at the Series 2010-2 Note Rate as provided in the Indenture.  Such interest shall be payable on each Payment Date, or such other date as may be specified in the Series 2010-2 Supplement, until the principal of this Note is paid or made available for payment, to the extent funds will be available as specified in the Indenture, in respect of the Series 2010-2 Accrued Interest Amount with respect to this Note.  The principal amount of this Note shall be subject to Increases and Decreases on any Business Day during the Series 2010-2 Revolving Period or, with respect to Decreases, thereafter, and accordingly, such principal amount is subject to prepayment by the Company at any time.  Notwithstanding the foregoing, prior to the second Payment Date following the commencement of the Series 2010-2 Controlled Amortization Period and unless an Amortization Event shall have occurred, only interest payments on the outstanding Principal Amount of this Note are required to be made to the holder hereof.  Beginning on the second Payment Date following the commencement of the Series 2010-2 Controlled Amortization Period, and ending on the Series 2010-2 Expected Final Payment Date, the principal of this Note shall be paid in installments on each Payment Date during such period as set forth in the Indenture.  Following the occurrence of an Amortization Event, subject to Decreases on any Business Day, the principal of this Note shall be paid in installments on each subsequent Payment Date to the extent of funds available for payment therefor pursuant to the Indenture.  Such principal of, and interest on, this Note shall be paid in the manner specified on the reverse hereof.

 

The principal of, and interest on, this 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 Note shall be applied first to interest due and payable on this Note as provided above and then to the unpaid principal of this Note.  This Note does not represent an interest in, or an obligation of, the Master Servicer or any affiliate of the Master Servicer other than the Company.

 

Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall have the same effect as though fully set forth on the face of this Note.  Although a description of certain provisions of the Indenture is set forth below and on the reverse hereof and made a part hereof, this 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 the Master Servicer and the Trustee.  A copy of the Indenture may be requested from the Trustee by writing to the Trustee at: Deutsche Bank Trust Company Americas, 60 Wall Street, New York,

 

 

  

A-3

  

New York 10005, Attention: Corporate Trust and Agency Group.  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 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.

 

 

  

A-4

  

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

 

Date:_________________

 

RENTAL CAR FINANCE CORP.

 

 

	
  

	
By:  _________________________

 

 

 

 

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Notes of a Series issued under the within-mentioned Indenture.

 

	
  

	
DEUTSCHE BANK TRUST COMPANY AMERICAS,

 

	
  

	
as Trustee

 

 

	
  

	
By:_________________________

	
  

	
Authorized Signature

 

 

 

 

 

  

A-5

  

REVERSE OF SERIES 2010-2 NOTE

 

This Note is one of a duly authorized issue of Notes of the Company, designated as its Rental Car Asset Backed Variable Funding Notes, Series 2010-2 (herein called the “Series 2010-2 Notes”), all issued under (i) the Amended and Restated Base Indenture, dated as of February 14, 2007 (as the same may be further amended, supplemented, restated or otherwise modified from time to time in accordance with the terms thereof, the “Base Indenture”), between the Company, as issuer, and Deutsche Bank Trust Company Americas, a New York banking corporation (“Deutsche Bank Trust Company”), as trustee (in such capacity, the “Trustee”), and (ii) the Series 2010-2 Supplement, dated as of June 17, 2010 (as the same may be amended, supplemented, restated or otherwise modified from time to time in accordance with the terms thereof, the “Series 2010-2 Supplement”), between the Company, as issuer, and the Trustee.  The Base Indenture and the Series 2010-2 Supplement are referred to herein collectively as the “Indenture”.  The Series 2010-2 Notes are subject to all terms of the Indenture.  All terms used in this Series 2010-2 Note and not otherwise defined herein that are defined in the Indenture shall have the meanings assigned to them in or pursuant to the Indenture.

 

The 2010-2 Notes are and will be equally and ratably secured among themselves by the Collateral, the Group VI Master Collateral and the Group VI Assignment of Exchange Agreement Collateral pledged as security therefor as and to the extent provided in the Indenture and the Second Amended and Restated Master Collateral Agency Agreement.

 

Principal of the Series 2010-2 Notes will be payable on each Payment Date specified in, and in the amounts described, in the Indenture.  “Payment Date” means the 25th day of each month, commencing July 25, 2010, or, if any such date is not a Business Day, the next succeeding Business Day.

 

The entire unpaid principal amount of this Note shall be due and payable on the Series 2010-2 Final Maturity Date.   Notwithstanding the foregoing, if an Amortization Event shall have occurred and be continuing then, in certain circumstances, principal on the Series 2010-2 Notes may be paid earlier, as provided in the Indenture.  All principal payments on the Series 2010-2 Notes shall be made pro rata to the Series 2010-2 Noteholders entitled thereto.

 

Payments of interest on this Note are due and payable on each Payment Date or such other date as may be specified in the Series 2010-2 Supplement, together with the installment of principal then due, if any, and any payments of principal made on any Business Day in respect of any Decreases, to the extent not in full payment of this Note, shall be made by wire transfer to the Holder of record of this Note (or one or more predecessor Series 2010-2 Notes) on the Note Register as of the close of business on each Record Date.  Any reduction in the principal amount of this Note (or any one or more predecessor Series 2010-2 Notes) effected by any payments made on any Payment Date shall be binding upon all future Holders of this Note and of any Series 2010-2 Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted thereon.  If funds are expected to be available, as provided in the Indenture, for payment in full of the then remaining unpaid principal amount of this Note (other than in connection with any Decrease prior to the commencement of the Series 2010-2 Controlled Amortization Period) on a Payment Date or on any Business Day, then the Trustee, in the name of and on behalf of the Company, will notify the Person who was the

 

 

  

A-6

  

registered Holder hereof as of the Record Date preceding such Payment Date by notice mailed within five (5) days of such Payment Date and the amount then due and payable shall be payable only upon presentation and surrender of this Note at the Corporate Trust Office.

 

The Company shall pay interest on overdue installments of interest at the Series 2010-2 Note Rate, as provided in the Indenture, to the extent lawful.

 

As provided in the Indenture and subject to certain limitations set forth therein and herein, the transfer of this Note may be registered on the Note Register upon surrender of this 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 Company and the Registrar, duly executed by the Holder hereof or its attorney duly authorized in writing, and thereupon one or more new Series 2010-2 Notes of authorized denominations and 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 Note, but the transferor may be required to pay a sum sufficient to cover any tax or other government charge payable in connection therewith.

 

Each Series 2010-2 Noteholder, by acceptance of a Series 2010-2 Note, covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of the Trustee or the Company on the Series 2010-2 Notes or under the Indenture or any certificate or other writing delivered in connection therewith, against (i) the Trustee or the Company 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 or the Company in its individual capacity, any holder of a beneficial interest in the Trustee or the Company or of any successor or assign of the Trustee or the Company 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 Note, subject to Section 12.16 of the Base Indenture.

 

Each Series 2010-2 Noteholder, by acceptance of a Series 2010-2 Note, covenants and agrees that, by accepting the benefits of the Indenture, such Series 2010-2 Noteholder will not for a period of one year and one day following the payment in full of all Series 2010-2 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 Series 2010-2 Notes, the Indenture or the Related Documents.

 

Prior to the due presentment for registration of transfer of this Note, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this 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

 

 

  

A-7

  

Note be overdue, and none of the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

It is the intent of the Company and each Series 2010-2 Noteholder that, for federal, state and local income and franchise tax purposes only, the Series 2010-2 Notes will evidence indebtedness of the Company secured by the Collateral.  Each Series 2010-2 Noteholder, by the acceptance of this Note, agrees to treat this 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 2010-2 Notes under the Indenture at any time by the Company with the consent of the Holders of Series 2010-2 Notes representing certain percentages in interest (as set forth in the Indenture) in the Outstanding Series 2010-2 Notes that are affected by such amendment or modification.  The Indenture also contains provisions permitting the Holders of Series 2010-2 Notes representing certain percentages in interest (as set forth in the Indenture) in Outstanding Series 2010-2 Notes, on behalf of the Holders of all the Series 2010-2 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, waiver or amendment by the Holder of this Note or otherwise by such specified percentages of the Series 2010-2 Noteholders shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Series 2010-2 Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent, waiver or amendment is made upon this 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 2010-2 Notes issued thereunder.

 

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

 

The Series 2010-2 Notes are issuable only in registered form in denominations as provided in the Indenture, subject to certain limitations set forth therein.

 

This Note and the Indenture shall be construed in accordance with the law of the State of New York, without reference to its conflict of law provisions (other than Section 5-1401 of the New York General Obligations Law), and the obligations, rights and remedies of the parties hereunder and thereunder shall be determined in accordance with such law.

 

Subject to Section 12.16 of the Base Indenture, no reference herein to the Indenture and no provision of this 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 Note at the time, place, and rate, and in the coin or currency herein prescribed, subject to any duty of the Company to deduct or withhold any amounts as required by law, including any applicable U.S. withholding taxes.

 

 

  

A-8

  

INCREASES AND DECREASES

 

 

  

A-9

  

 

 

 

	
Date

	
Unpaid 

Principal 

Amount

	
Increase

	
Decrease

	
Total

	
Series 2010-2 

Note Rate

	
Interest 

Period (if 

applicable)

	
Notation Made 

By

	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  

 

 

  

A-10

  

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

 

Dated:_______________________                         __________________________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 in every particular, without alteration, enlargement or any change whatsoever.

 

  

A-11

  

EXHIBIT B

 

Form of Demand Note

 

New York, New York

[Date]

 

FOR VALUE RECEIVED, the undersigned, DOLLAR THRIFTY AUTOMOTIVE GROUP, INC., a Delaware corporation (“DTAG”), promises to pay to RENTAL CAR FINANCE CORP., an Oklahoma corporation (“RCFC”), on demand (the date of any such demand, a “Demand Date”), (a) the principal sum of [____] dollars ($[____]) or (b) such other amount, shown on Schedule A attached hereto (and any continuation thereof) made by RCFC, as the aggregate unpaid principal balance hereof, including the aggregate unpaid principal amount of Demand Note Advances (as defined herein) made from funds on deposit in the Series 2010-2 Collection Account from time to time and the amount of any increase in such principal amount representing additional contributions of capital to RCFC from DTAG.  Capitalized terms used herein and not otherwise defined herein shall have the meanings set forth in the Amended and Restated Base Indenture, dated as of February 14, 2007, between RCFC and Deutsche Bank Trust Company Americas, as Trustee (the “Base Indenture”), as supplemented by the Series 2010-2 Supplement, dated as of June 17, 2010 (the “Series 2010-2 Supplement” and together with the Base Indenture, the “Indenture”).

 

1.           Principal Payment Date.  All unpaid principal of this promissory note (this “Demand Note”), or such portion thereof demanded at such time, shall be paid on the Demand Date.

 

2.           Interest.  DTAG also promises to pay interest on the unpaid principal amount of any Demand Note Advances from time to time outstanding at an interest rate of one-year LIBOR, as determined for such period in the manner set forth under the Indenture for the determination of LIBOR thereunder, plus [_]% (the “Demand Note Rate”) from the date hereof until the principal amount shall be paid in full.

 

3.           Prepayments.  DTAG shall repay in full the unpaid principal amount of this Demand Note or any portion thereof upon any Demand Date hereof to the extent demand is made therefor.  Prior thereto, DTAG may, from time to time on any Business Day, make a voluntary prepayment, in whole or in part, of the outstanding principal amount of this Demand Note; provided, however, that

 

(i)           no Amortization Event or Lease Event of Default shall have occurred and be continuing; and

 

(ii)           any such voluntary prepayments shall require at least three but no more than five Business Days’ prior written notice to RCFC, unless otherwise agreed by RCFC.

 

Each prepayment of any Demand Note made pursuant to this Section 3 shall be without premium or penalty.

 

 

  

B-1

  

4.           Demand Note Advances.  RCFC agrees to make advances (“Demand Note Advances”) upon request from DTAG, as borrower, out of and not to exceed in any Related Month the amount of Recoveries not allocated pursuant to Sections 4.7(a)(ii)(A), 4.7(b)(ii)(A) or 4.7(c)(ii)(A) of the Series 2010-2 Supplement that may be lent under this Demand Note pursuant to Section 4.7(d)(i) of the Series 2010-2 Supplement.  Such Demand Note Advances are repayable by DTAG, with interest, on each Demand Date upon demand by RCFC or the Trustee, as assignee of RCFC.  Demand Note Advances shall accrue interest on the outstanding balance thereof at the Demand Note Rate then applicable.  The date, amount, interest rate and duration of the Series 2010-2 Interest Period (if applicable) of each Demand Note Advance made by RCFC to DTAG and each payment made on account of the principal thereof, shall be recorded by RCFC on its books and, prior to any transfer of this Demand Note, endorsed by RCFC on Schedule A attached hereto or any continuation thereof, provided that the failure of RCFC to make any such recordation or endorsement shall not affect the obligations of DTAG to make a payment when due of any amount owing hereunder or under any other Related Document in respect of the Demand Note Advances made by RCFC.

 

5.           Subordination.

 

(a)           RCFC, as subordinated lender under this Demand Note in respect of Demand Note Advances (the “Subordinated Lender”) hereby agrees that the Subordinated Lender’s rights under this Demand Note are expressly subordinated to all payment obligations due to the Trustee, as assignee of the Master Lease (the “Senior Lender”), under the Master Lease (the “Payment Obligations”).  The Subordinated Lender hereby agrees that the payment of this Demand Note is hereby expressly subordinated, in accordance with the terms hereof, to the prior payment in full of the Payment Obligations in cash.

 

(b)           Upon the maturity of any Payment Obligation (including interest thereon or fees or any other amounts owing in respect thereof), whether on any Payment Date (after any extension thereof), by acceleration or otherwise, all payments thereof and premium, if any, and interest thereon or fees or any other amounts owing in respect thereof, in each case to the extent due and owing, shall first be paid in full in cash, or such payment duly provided for in cash or in a manner satisfactory to the Senior Lender, before any payment is made on account of the Demand Note.  The Subordinated Lender hereby agrees that, so long as an Amortization Event or a Lease Event of Default exists, or event which with notice or lapse of time or both would constitute an Amortization Event or a Lease Event of Default, in respect of any Payment Obligations, it will not ask, demand, sue for, or otherwise take, accept or receive, any amounts in respect of this Demand Note.

 

(c)           In the event that notwithstanding the provisions of the preceding Section 5(b), DTAG shall make any payment on account of this Demand Note at a time when payment is not permitted by said Section 5(b), such payment shall be held by the Subordinated Lender or its representative, in trust for the benefit of, and shall be paid forthwith over and delivered to, the Senior Lender or its representative for application to the payment of all Payment Obligations remaining unpaid to the extent necessary to pay all Payment Obligations in full in cash in accordance with the terms of the Master Lease, after giving effect to any concurrent payment or distribution to or for the Payment Obligations.  Without in any way modifying the provisions hereof or affecting the subordination effected hereby if such notice is not given, DTAG shall

 

 

  

B-2

  

give the Subordinated Lender prompt written notice of any payment made on the Demand Note and any Demand Date of Payment Obligations after which such Payment Obligations remain unsatisfied.

 

(d)           Upon any distribution of assets of DTAG upon any dissolution, winding up, liquidation or reorganization of DTAG (whether in bankruptcy, insolvency or receivership proceedings or upon an assignment for the benefit of creditors or otherwise):

 

(i)           the Senior Lender shall first be entitled to receive payment in full of the Payment Obligations in cash or in a manner satisfactory to the Senior Lender (including, without limitation, all interest accruing after the commencement of any bankruptcy, insolvency, receivership or similar proceeding at the rate provided in the governing documentation whether or not such interest is an allowed claim in such proceeding) before the Subordinated Lender is entitled to receive any payment out of the proceeds from or distributions made under the Master Lease;

 

(ii)           any payment out of the proceeds from or distributions made under the Master Lease of any kind or character, whether in cash, property or securities to which the Subordinated Lender would be entitled except for the provisions hereof, shall be paid by the liquidating trustee or agent or other person making such payment or distribution, whether a trustee or agent, directly to the Senior Lender or its representative under the agreements pursuant to which the Payment Obligations may have been made, to the extent necessary to make payment in full of all Payment Obligations remaining unpaid, after giving effect to any concurrent payment or distribution to the Senior Lender in respect of the Payment Obligations; and

 

(iii)            in the event that, notwithstanding the foregoing provisions of this Section 5(d), any payment of any kind or character, whether in cash, property or securities, shall be received by the Subordinated Lender on account of principal of this Demand Note before all Payment Obligations are paid in full in cash or in a manner satisfactory to the Senior Lender, or effective provisions made for its payment, such payment out of the proceeds from or distributions made under the Master Lease shall be received and held in trust for and shall be paid over to the Senior Lender in respect of Payment Obligations remaining unpaid or unprovided for or their representative under the agreements pursuant to which the Payment Obligations have been made, for application to the payment of such Payment Obligations until all such Payment Obligations shall have been paid in full in cash or in a manner satisfactory to the Senior Lender, after giving effect to any concurrent payment or distribution to the Senior Lender in respect of Payment Obligations.

 

Without in any way modifying the provisions hereof or affecting the subordination effected hereby if such notice is not given, DTAG shall give prompt written notice to the Subordinated Lender of any dissolution, winding up, liquidation or reorganization of DTAG (whether in bankruptcy, insolvency or receivership proceedings or upon an assignment for the benefit of creditors or otherwise).

 

 

  

B-3

  

6.           No Waiver; Amendment.  No failure or delay on the part of RCFC in exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power or right preclude any other or further exercise thereof or the exercise of any other power or right.  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 DTAG and RCFC, and (b) all consents (if any) required for such actions under the Related Documents shall have been received by the appropriate Persons.

 

7.           No Negotiation.  This Demand Note is not negotiable other than a pledge or assignment to the Trustee, who is hereby authorized by DTAG and RCFC to make claims for repayment of principal outstanding hereunder on behalf of RCFC.

 

8.           Successors and Assigns.  This Demand Note shall be binding upon and shall inure to the benefit of the parties hereto and their respective permitted successors and assigns.

 

9.           Governing Law.  THIS PROMISSORY NOTE HAS BEEN DELIVERED IN NEW YORK, NEW YORK AND SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

 

10.           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.

 

	
  

	
DOLLAR THRIFTY AUTOMOTIVE GROUP, INC.

 

 

	
  

	
By

	 	 

	
  

	
Pamela S. Peck

	
  

	
Vice President and Treasurer

 

Accepted and Agreed:

 

RENTAL CAR FINANCE CORP.

 

By:______________________

 

Michael H. McMahon

 

Assistant Treasurer

 

 

  

B-4

  

Schedule A

 

PAYMENT GRID

 

	
Date

	
Principal 

Amount

	
Amount of 

Principal 

Payment

	
Amount of 

Demand 

Note 

Advance/

Contribution

	
Outstanding 

Principal 

Balance

	
Notation 

Made By

	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  

 

  

B-5

  

EXHIBIT C

TO SERIES 2010-2 SUPPLEMENT

 

Form of Notice of

 

Series 2010-2 Lease Payment Losses

 

Deutsche Bank Trust Company Americas, as Trustee

60 Wall Street

New York, New York 10005

 

Ladies and Gentlemen:

 

This Notice of Series 2010-2 Lease Payment Losses is delivered to you pursuant to Section 4.14 of the Series 2010-2 Supplement dated as of June 17, 2010 to the Amended and Restated Base Indenture dated as of February 14, 2007 (as amended or modified from to time, the “Series 2010-2 Supplement”) between Rental Car Finance Corp., an Oklahoma corporation, as issuer, and Deutsche Bank Trust Company Americas, as Trustee.  Capitalized terms used and not otherwise defined herein have the meanings provided in the Series 2010-2 Supplement.

 

The Master Servicer hereby notifies the Trustee that as of _________, 20__ there exists  Series 2010-2 Lease Payment Losses in the amount of $__________.

 

	
  

	
DOLLAR THRIFTY AUTOMOTIVE GROUP, INC.

 

 

	
  

	
By:

	 	 

	
  

	
Name:

	
  

	
Title:

 

 

  

C-1

  

EXHIBIT D

 

FORM OF MONTHLY NOTEHOLDERS’ STATEMENT

 

RENTAL CAR FINANCE CORP.

 

____________________________________

 

RENTAL CAR ASSET BACKED NOTES

Series 2010-2

____________________________________

 

 

Under Section 5.4 of the Amended and Restated Base Indenture, dated as of February 14, 2007 (hereinafter as such agreement may have been, or may be from time to time, supplemented, amended or otherwise modified, the “Base Indenture”), between Rental Car Finance Corp. (“RCFC”), as issuer, and Deutsche Bank Trust Company Americas, as trustee (the “Trustee”), as supplemented by that certain Series 2010-2 Supplement thereto, dated as of June 17, 2010 (the “Series 2010-2 Supplement” and, together with the Base Indenture, the “Indenture”), the Master Servicer is required to prepare certain information each month regarding current distributions to the Series 2010-2 Noteholders.  The information which is required to be prepared with respect to the Payment Date of ______________, 2010 (the “Applicable Payment Date”) is set forth below.  Certain of the information is presented on the basis of an original principal amount of $1,000 per Series 2010-2 Note and as a percentage of the outstanding principal balance of the Series 2010-2 Notes as of such date.  Certain other information is presented based on the aggregate amounts for RCFC as a whole.  Capitalized terms used herein have their respective meanings set forth in the Indenture.

 

	
1.The aggregate amount of Collections processed since the Payment Date prior to the Applicable Payment Date

	
$__________

	
2.The aggregate amount of Series 2010-2 Interest Collections processed since the Payment Date prior to the Applicable Payment Date

	
$__________

	
3.The aggregate amount of Principal Collections processed during the Related Month immediately preceding the Applicable Payment Date

	
$__________

	
4.The Series 2010-2 Accrued Interest Amount for the Applicable Payment Date

	
$__________

	
5.The Series 2010-2 Interest Amount for the Applicable Payment Date

	
$__________

	
6.The Series 2010-2 Interest Rate Cap Proceeds for the Applicable Payment Date

	
$__________

 

  

D-1

 

  

	
7.The Series 2010-2 Invested Percentage for Series 2010-2 Interest Collections with respect to Series 2010-2 Notes on the last day of the Related Month immediately preceding the Applicable Payment Date

	
__________%

	
8.The Series 2010-2 Invested Percentage for Series 2010-2 Principal Collections with respect to Series 2010-2 Notes on the last day of the Related Month immediately preceding the Applicable Payment Date

	
__________%

	
9.The total amount of the distribution to Series 2010-2 Noteholders on _______________, 2010, per $1,000 original Note Principal Amount

	
$__________

	
10.The amount of the distribution set forth in paragraph 8 above with respect to principal of the Series 2010-2 Notes, per $1,000 original Note Principal Amount

	
$__________

	
11.The amount of the distribution set forth in paragraph 8 above with respect to interest on the Series 2010-2 Notes, per $1,000 original Note Principal Amount

	
$__________

	
12.The amount drawn under the Enhancement (including the amount drawn on any Available Subordinated Amount) for the Series 2010-2 Notes as of the Applicable Payment Date

	
$__________

	
13.The amount of the Series 2010-2 Monthly Servicing Fee for the Applicable Payment Date

	
$__________

	
14.The amount of the Series 2010-2 Monthly Supplemental Servicing Fee for the Applicable Payment Date

	
$__________

	
15.The amount of the Group VI Monthly Servicing Fee for the Applicable Payment Date

	
$__________

	
16.The amount of the Group VI Monthly Supplemental Servicing Fee for the Applicable Payment Date

	
$__________

	
17.The Series 2010-2 Enhancement Amount, as of the last day of the Related Month immediately preceding the Applicable Payment Date after giving effect to any expected drawings on any applicable Enhancement and payments to the Enhancement Provider on the Applicable Payment Date, on an aggregate basis and per $1,000 original Note Principal Amount

	
$__________

	
18.The Series 2010-2 Enhancement Deficiency, as of the last day of the Related Month immediately preceding the Applicable Payment Date after giving effect to any expected drawings on any applicable Enhancement and payments to the Enhancement Provider on the Applicable Payment Date, on an aggregate basis and per $1,000 original Note Principal Amount

	
$__________

 

  

D-2

 

  

	
19.The Series 2010-2 Minimum Enhancement Amount, as of the last day of the Related Month immediately preceding the Applicable Payment Date after giving effect to any expected drawings on any applicable Enhancement and payments to the Enhancement Provider on the Applicable Payment Date, on an aggregate basis and per $1,000 original Note Principal Amount

	
$__________

	
20.The Series 2010-2 Required Enhancement Percentage, as of the last day of the Related Month immediately preceding the Applicable Payment Date after giving effect to any expected drawings on any applicable Enhancement and payments to the Enhancement Provider on the Applicable Payment Date, on an aggregate basis and per $1,000 original Note Principal Amount

	
__________%

	
21.The Series 2010-2 Liquidity Amount, as of the last day of the Related Month immediately preceding the Applicable Payment Date after giving effect to any expected drawings on any applicable Enhancement and payments to the Enhancement Provider on the Applicable Payment Date, on an aggregate basis and per $1,000 original Note Principal Amount

	
$__________

	
22.The Series 2010-2 Minimum Liquidity Amount, as of the last day of the Related Month immediately preceding the Applicable Payment Date after giving effect to any expected drawings on any applicable Enhancement and payments to the Enhancement Provider on the Applicable Payment Date, on an aggregate basis and per $1,000 original Note Principal Amount

	
$__________

	
23.The Series 2010-2 Cash Liquidity Amount, as of the last day of the Related Month immediately preceding the Applicable Payment Date after giving effect to any expected drawings on any applicable Enhancement and payments to the Enhancement Provider on the Applicable Payment Date, on an aggregate basis and per $1,000 original Note Principal Amount

	
$__________

	
24.The Series 2010-2 Letter of Credit Amount, as of the last day of the Related Month immediately preceding the Applicable Payment Date after giving effect to any expected drawings on any applicable Enhancement and payments to the Enhancement Provider on the Applicable Payment Date, on an aggregate basis and per $1,000 original Note Principal Amount

	
$__________

	
25.The Series 2010-2 Letter of Credit Liquidity Amount, as of the last day of the Related Month immediately preceding the Applicable Payment Date after giving effect to any expected drawings on any applicable Enhancement and payments to the Enhancement Provider on the Applicable Payment Date, on an aggregate basis and per $1,000 original Note Principal Amount

	
$__________

	
26.The Series 2010-2 Minimum Letter of Credit Amount, as of the last day of the Related Month immediately preceding the Applicable Payment Date after giving effect to any expected drawings on any applicable Enhancement and payments to the Enhancement Provider on the Applicable Payment Date, on an aggregate basis and per $1,000 original Note Principal Amount

	
$__________

 

  

D-3

  

 

	
27.The Series 2010-2 Available Subordinated Amount, as of the last day of the Related Month immediately preceding the Applicable Payment Date after giving effect to any expected drawings on any applicable Enhancement and payments to the Enhancement Provider on the Applicable Payment Date, on an aggregate basis and per $1,000 original Note Principal Amount

	
$__________

	
28.The Series 2010-2 Minimum Subordinated Amount, as of the last day of the Related Month immediately preceding the Applicable Payment Date after giving effect to any expected drawings on any applicable Enhancement and payments to the Enhancement Provider on the Applicable Payment Date, on an aggregate basis and per $1,000 original Note Principal Amount

	
$__________

	
29.The Series 2010-2 Cash Collateral Account Surplus, as of the last day of the Related Month immediately preceding the Applicable Payment Date after giving effect to any expected drawings on any applicable Enhancement and payments to the Enhancement Provider on the Applicable Payment Date, on an aggregate basis and per $1,000 original Note Principal Amount

	
$__________

	
30.The ratio of the available Enhancement amount to the Series 2010-2 Invested Amount as of the close of business on the Applicable Payment Date, after giving effect to any expected drawings on the applicable Enhancement and payments to the applicable Enhancement Provider on the Applicable Payment Date

	
___________

	
31.The amount of any LOC Disbursements expected to be made with respect to the Applicable Payment Date

	
$__________

	
32.The Series 2010-2 Monthly Interest Shortfall, if any, with respect to the Applicable Payment Date

	
$__________

	
33.The Series 2010-2 Invested Amount with respect to the Applicable Payment Date

	
$__________

	
34.The Series 2010-2 Invested Percentage with respect to the Applicable Payment Date

	
__________%

	
35.The Series 2010-2 Maximum Invested Amount with respect to the Applicable Payment Date

	
$__________

	
36.The Group VI Aggregate Invested Amount with respect to the Applicable Payment Date

	
$__________

	
37.The Retained Interest Amount, if any, with respect to all outstanding Group VI Series of Notes as of the close of business on the last day of the Related Month immediately preceding the Applicable Payment Date

	
$__________

 

  

D-4

 

  

	
38.The Retained Interest Percentage with respect to all outstanding Group VI Series of Notes as of the close of business on the last day of the Related Month immediately preceding the Applicable Payment Date

	
__________%

	
39.To the knowledge of the undersigned, there are no liens on any of the Collateral, other than the Lien granted by the Indenture or as otherwise permitted by the Related Documents, except as described below:

	  
	
[If applicable, insert “None”]

	  
	
40.To the knowledge of the undersigned, no Lease Event of Default or Servicer Default has occurred, except as described below:

	  
	
[If applicable, insert “None”]

	  
	
41.To the knowledge of the undersigned, no Amortization Event or Potential Amortization Event has occurred with respect to the Series 2010-2 Notes, except as described below:

	  
	
[If applicable, insert “None”]

	  
	
42.The Required Asset Amount as of the last day of the Related Month immediately preceding the Applicable Payment Date

	
$__________

	
43.The Aggregate Asset Amount as of the last day of the Related Month immediately preceding the Applicable Payment Date 

	
$__________

	
44.The amount of any Asset Amount Deficiency as of the last day of the Related Month immediately preceding the Applicable Payment Date

	
$__________

	
45.The Exchange Agreement Group VI Rights Value as of the last day of the Related Month immediately preceding the Applicable Payment Date

	
$__________

	
46.The Net Book Value of Vehicles from each Manufacturer and the rating of each such Manufacturer (in each case, as of the last day of the Related Month immediately preceding the Applicable Payment Date):

	  
	
a.__________ (Rating:_____)

	
$__________

	
b.__________ (Rating:_____)

	
$__________

	
c.__________ (Rating:_____)

	
$__________

	
47.The number of Group VI Vehicles of each Manufacturer as of the last day of the Related Month immediately preceding the Applicable Payment Date

	  
	
a.__________

	
___________

	
b.__________

	
___________

	
c.__________

	
___________

 

  

D-5

 

  

	
48.The average age of all Vehicles as of the last day of the Related Month immediately preceding the Applicable Payment Date

	
___________

	
49.The average total monthly Depreciation Charges per Vehicle during the Related Month immediately preceding the Applicable Payment Date

	
$__________

	
50.The Market Value Adjustment Percentage as of the related Determination Date

	
__________%

	
51.The Measurement Month Average as of the last day of the Related Month immediately preceding the Applicable Payment Date

	
$__________

	
52.The aggregate Market Value of Non-Program Vehicles as of the last day of the Related Month immediately preceding the Applicable Payment Date

	
$__________

	
53.The Measurement Month Average used to determine the Market Value Adjustment Percentage as of the related Determination Date (if different than the Measurement Month Average as of the last day of the Related Month immediately preceding the Applicable Payment Date)

	
$__________

	
54.The Third-Party Market Value Adjustment Percentage, if any, as of the immediately preceding Third-Party Market Value Determination Date (and, if such date is a Third-Party Market Value Determination Date, such date)

	
__________%

	
55.Any other information required to be included in the Monthly Noteholders’ Statement pursuant to the terms of the Series 2010-2 Supplement (attach on separate page)

	  

 

IN WITNESS WHEREOF, the undersigned has duly executed this certificate this ____ day of ___________________, 2010.

                                                                                                _________________________________________

Name:____________________________________

Title:_____________________________________                                                                           

 

  

D-6

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