Document:

exv4w4w11

Exhibit 4.4.11

CHESAPEAKE FUNDING LLC,

as Issuer,

PHH VEHICLE MANAGEMENT SERVICES, LLC,

as Administrator,

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent,

CERTAIN NON-CONDUIT PURCHASERS,

CERTAIN CP CONDUIT PURCHASER GROUPS,

FUNDING AGENTS FOR THE CP CONDUIT PURCHASER GROUPS,

CERTAIN CLASS B NOTE PURCHASERS

and

THE BANK OF NEW YORK MELLON,

as Indenture Trustee

SERIES 2010-1 INDENTURE SUPPLEMENT

dated as of June 1, 2010

to

AMENDED AND RESTATED BASE INDENTURE

dated as of December 17, 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE 1 DEFINITIONS
	 	 	2	 
	 
	 	 	 	 
	ARTICLE 2 PURCHASE AND SALE OF SERIES 2010-1 INVESTOR NOTES; INCREASES
AND DECREASES OF CLASS A INVESTED AMOUNT
	 	 	39	 
	 
	 	 	 	 
	SECTION 2.1. Purchases of the Series 2010-1 Investor Notes
	 	 	39	 
	 
	 	 	 	 
	SECTION 2.2. Delivery
	 	 	40	 
	 
	 	 	 	 
	SECTION 2.3. Procedure for Initial Issuance of Series 2010-1 Investor Notes and for
Increasing the Class A Invested Amount
	 	 	40	 
	 
	 	 	 	 
	SECTION 2.4. Sales by CP Conduit Purchasers of Class A Investor Notes to APA Banks
	 	 	44	 
	 
	 	 	 	 
	SECTION 2.5. Procedure for Decreasing the Class A Invested Amount; Optional Termination
	 	 	44	 
	 
	 	 	 	 
	SECTION 2.6. Increases and Reductions of the Commitments; Extensions of the Commitments
	 	 	45	 
	 
	 	 	 	 
	SECTION 2.7. Interest; Fees
	 	 	46	 
	 
	 	 	 	 
	SECTION 2.8. Indemnification by the Issuer and the Administrator
	 	 	48	 
	 
	 	 	 	 
	SECTION 2.9. Funding Agents
	 	 	49	 
	 
	 	 	 	 
	SECTION 2.10. Replacement
	 	 	49	 
	 
	 	 	 	 
	SECTION 2.11. Defaulting Purchaser Groups
	 	 	50	 
	 
	 	 	 	 
	ARTICLE 3 ARTICLE 5 OF THE BASE INDENTURE
	 	 	51	 
	 
	 	 	 	 
	ARTICLE 4 AMORTIZATION EVENTS
	 	 	71	 
	 
	 	 	 	 
	ARTICLE 5 OPTIONAL PREPAYMENT
	 	 	73	 
	 
	 	 	 	 
	ARTICLE 6 SERVICING AND ADMINISTRATOR FEES
	 	 	74	 
	 
	 	 	 	 
	SECTION 6.1. Servicing Fee
	 	 	74	 
	 
	 	 	 	 
	SECTION 6.2. Administrator Fee
	 	 	74	 
	 
	 	 	 	 
	ARTICLE 7 CHANGE IN CIRCUMSTANCES
	 	 	74	 

i

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	SECTION 7.1. Illegality
	 	 	74	 
	 
	 	 	 	 
	SECTION 7.2. Increased Costs.
	 	 	75	 
	 
	 	 	 	 
	SECTION 7.3. Taxes
	 	 	76	 
	 
	 	 	 	 
	SECTION 7.4. Break Funding Payments
	 	 	79	 
	 
	 	 	 	 
	SECTION 7.5. Alternate Rate of Interest
	 	 	80	 
	 
	 	 	 	 
	SECTION 7.6. Mitigation Obligations
	 	 	80	 
	 
	 	 	 	 
	ARTICLE 8 REPRESENTATIONS AND WARRANTIES, COVENANTS
	 	 	81	 
	 
	 	 	 	 
	SECTION 8.1. Representations and Warranties of the Issuer and VMS
	 	 	81	 
	 
	 	 	 	 
	SECTION 8.2. Covenants of the Issuer and VMS
	 	 	81	 
	 
	 	 	 	 
	SECTION 8.3. Covenants of the Administrator
	 	 	82	 
	 
	 	 	 	 
	SECTION 8.4. Obligations Unaffected
	 	 	83	 
	 
	 	 	 	 
	ARTICLE 9 CONDITIONS PRECEDENT
	 	 	84	 
	 
	 	 	 	 
	SECTION 9.1. Conditions Precedent to Effectiveness of Indenture Supplement
	 	 	84	 
	 
	 	 	 	 
	ARTICLE 10 THE ADMINISTRATIVE AGENT
	 	 	89	 
	 
	 	 	 	 
	SECTION 10.1. Appointment
	 	 	89	 
	 
	 	 	 	 
	SECTION 10.2. Delegation of Duties
	 	 	89	 
	 
	 	 	 	 
	SECTION 10.3. Exculpatory Provisions
	 	 	89	 
	 
	 	 	 	 
	SECTION 10.4. Reliance by Administrative Agent
	 	 	90	 
	 
	 	 	 	 
	SECTION 10.5. Notice of Administrator Default or Amortization Event or Potential
Amortization Event
	 	 	90	 
	 
	 	 	 	 
	SECTION 10.6. Non-Reliance on the Administrative Agent and Other Purchasers
	 	 	91	 
	 
	 	 	 	 
	SECTION 10.7. Indemnification
	 	 	91	 
	 
	 	 	 	 
	SECTION 10.8. The Administrative Agent in Its Individual Capacity
	 	 	92	 
	 
	 	 	 	 
	SECTION 10.9. Resignation of Administrative Agent; Successor Administrative Agent
	 	 	92	 
	 
	 	 	 	 
	ARTICLE 11 THE FUNDING AGENTS
	 	 	93	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	SECTION 11.1. Appointment
	 	 	93	 
	 
	 	 	 	 
	SECTION 11.2. Delegation of Duties
	 	 	93	 
	 
	 	 	 	 
	SECTION 11.3. Exculpatory Provisions
	 	 	93	 
	 
	 	 	 	 
	SECTION 11.4. Reliance by Each Funding Agent
	 	 	94	 
	 
	 	 	 	 
	SECTION 11.5. Notice of Administrator Default or Amortization Event or Potential
Amortization Event
	 	 	94	 
	 
	 	 	 	 
	SECTION 11.6. Non-Reliance on Each Funding Agent and Other CP Conduit Purchaser Groups
	 	 	94	 
	 
	 	 	 	 
	SECTION 11.7. Indemnification
	 	 	95	 
	 
	 	 	 	 
	ARTICLE 12 MISCELLANEOUS
	 	 	95	 
	 
	 	 	 	 
	SECTION 12.1. Ratification of Indenture
	 	 	95	 
	 
	 	 	 	 
	SECTION 12.2. Governing Law
	 	 	95	 
	 
	 	 	 	 
	SECTION 12.3. Further Assurances
	 	 	96	 
	 
	 	 	 	 
	SECTION 12.4. Payments
	 	 	96	 
	 
	 	 	 	 
	SECTION 12.5. Costs and Expenses
	 	 	96	 
	 
	 	 	 	 
	SECTION 12.6. No Waiver; Cumulative Remedies
	 	 	96	 
	 
	 	 	 	 
	SECTION 12.7. Amendments
	 	 	96	 
	 
	 	 	 	 
	SECTION 12.8. Severability
	 	 	98	 
	 
	 	 	 	 
	SECTION 12.9. Notices
	 	 	98	 
	 
	 	 	 	 
	SECTION 12.10. Successors and Assigns
	 	 	98	 
	 
	 	 	 	 
	SECTION 12.11. Securities Laws
	 	 	102	 
	 
	 	 	 	 
	SECTION 12.12. Adjustments; Set-off
	 	 	102	 
	 
	 	 	 	 
	SECTION 12.13. Counterparts
	 	 	103	 
	 
	 	 	 	 
	SECTION 12.14. No Bankruptcy Petition
	 	 	103	 
	 
	 	 	 	 
	SECTION 12.15. SUBIs
	 	 	104	 
	 
	 	 	 	 
	SECTION 12.16. Discharge of Indenture
	 	 	104	 

iii

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	SECTION 12.17. Limited Recourse
	 	 	105	 
	 
	 	 	 	 
	SECTION 12.18. Waiver of Setoff
	 	 	105	 
	 
	 	 	 	 
	SECTION 12.19. Conflict of Instructions
	 	 	105	 
	 
	 	 	 	 
	SECTION 12.20. JPMorgan Chase Conflict Waiver
	 	 	105	 
	 
	 	 	 	 
	SECTION 12.21. Confidential Information.
	 	 	106	 

	 	 	 

	SCHEDULES
	 	 
	Schedule I:

	 	List of Purchaser Groups
	Schedule II:

	 	List of Class B Note Purchasers
	 
	 	 
	EXHIBITS
	 	 
	Exhibit A:

	 	Form of Class A Investor Note
	Exhibit B:

	 	Form of Class B Investor Note
	Exhibit C:

	 	Increase Notice
	Exhibit D:

	 	Form of Lease Rate Cap
	Exhibit E:

	 	Monthly Settlement Statement
	Exhibit F:

	 	Form of Agreed Upon Procedures — Lease Data File
	Exhibit G:

	 	Form of Agreement Upon Procedures — Characteristics of Leases
	Exhibit H:

	 	UCC Certificate
	Exhibit I:

	 	Form of Transfer Supplement
	Exhibit J:

	 	Form of Purchaser Group Supplement
	Exhibit K:

	 	Form of Class B Note Transfer Supplement

iv

 

          SERIES 2010-1 INDENTURE SUPPLEMENT, dated as of June 1, 2010 (as amended, supplemented,
restated or otherwise modified from time to time, this “Indenture Supplement”) among
CHESAPEAKE FUNDING LLC, a special purpose limited liability company established under the laws of
Delaware (the “Issuer”), PHH VEHICLE MANAGEMENT SERVICES, LLC (“VMS”), as
administrator (in such capacity, the “Administrator”), the NON-CONDUIT PURCHASERS from time
to time parties hereto, the CP CONDUIT PURCHASER GROUPS from time to time parties hereto, the
FUNDING AGENTS for the CP Conduit Purchaser Groups from time to time parties hereto, JPMORGAN CHASE
BANK, N.A., in its capacity as administrative agent for the Purchaser Groups (the
“Administrative Agent”), the several purchasers of the Class B Investor Notes listed on
Schedule II and their respective permitted successors and assigns pursuant to Section
12.10(g) (the “Class B Note Purchasers”; each, individually, a “Class B Note
Purchaser”) and THE BANK OF NEW YORK MELLON, in its capacity as Indenture Trustee (together
with its successors in trust thereunder as provided in the Base Indenture referred to below, the
“Indenture Trustee”), to the Amended and Restated Base Indenture, dated as of December 17,
2008, between the Issuer and the Indenture Trustee (as amended, modified, restated or supplemented
from time to time, exclusive of Indenture Supplements creating new Series of Investor Notes, the
“Base Indenture”).

PRELIMINARY STATEMENT

          WHEREAS, Sections 2.2 and 12.1 of the Base Indenture provide, among other
things, that the Issuer and the Indenture Trustee may at any time and from time to time enter into
an Indenture Supplement to the Base Indenture for the purpose of authorizing the issuance of one or
more Series of Investor Notes.

          NOW, THEREFORE, the parties hereto agree as follows:

DESIGNATION

          There is hereby created a Series of Investor Notes issued pursuant to the Base Indenture and
this Indenture Supplement and such Series of Investor Notes shall be designated generally as
Floating Rate Asset Backed Investor Notes, Series 2010-1.

          The Series 2010-1 Investor Notes shall be issued in two classes: the first of which shall be
designated as Series 2010-1 Floating Rate Asset Backed Variable Funding Investor Notes, Class A,
and referred to herein as the Class A Investor Notes, and the second of which shall be designated
as the Series 2010-1 Floating Rate Asset Backed Investor Notes, Class B, and referred to herein as
the Class B Investor Notes. The Class A Investor Notes and the Class B Investor Notes are referred
to herein collectively as the “Series 2010-1 Investor Notes.”

          The proceeds from the initial sale of the Series 2010-1 Investor Notes and from any Increase
(as defined herein) shall be deposited in the Series 2010-1 Collection Subaccount and shall be used
by the Issuer to fund the Loans to Holdings under the Loan Agreement and the prepayment of the
Invested Amounts of other Series of Investor Notes.

I-1

 

2

ARTICLE 1

DEFINITIONS

          (a) All capitalized terms not otherwise defined herein are defined in the Definitions List
attached to the Base Indenture as Schedule 1 thereto. All Article, Section or Subsection
references herein shall refer to Articles, Sections or Subsections of this Indenture Supplement,
except as otherwise provided herein. Unless otherwise stated herein, as the context otherwise
requires or if such term is otherwise defined in the Base Indenture, each capitalized term used or
defined herein shall relate only to the Series 2010-1 Investor Notes and not to any other Series of
Investor Notes issued by the Issuer.

          (b) The following words and phrases shall have the following meanings with respect to the
Series 2010-1 Investor Notes and the definitions of such terms are applicable to the singular as
well as the plural form of such terms and to the masculine as well as the feminine and neuter
genders of such terms:

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

     “Acquiring Class B Note Purchaser” is defined in Section 12.10(g).

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

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

     “Administrative Agent” is defined in the preamble hereto.

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

     “Alternate Base Rate” means, for any day, a rate per annum equal to the
greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate
in effect on such day plus 1/2 of 1% and (c) an interest rate per annum (rounded upwards, if
necessary, to the nearest 1/16th of 1%) equal to the rate per annum shown on the display
designated as “LIBOR01” on the Reuters Money 3000 Service for a period of thirty days at
11:00 A.M., London time, on such day (or, if no such rate is shown for such day, such rate
shown for the immediately preceding day for which such rate is shown) multiplied by the
Statutory Reserve Rate plus 1%. Any change in the Alternate Base Rate due to a change in
any such rate shall be effective from and including the effective day of such change in
rate.

     “Amortization Event” is defined in Article 4.

 

3

     “APA Bank” means, with respect to a CP Conduit Purchaser, each bank set forth
opposite the name of such CP Conduit Purchaser on Schedule I or in the Purchaser Group
Supplement pursuant to which such CP Conduit Purchaser became a party to this Indenture
Supplement and any assignee thereof, to the extent such assignee has assumed all or a
portion of the Commitment of an APA Bank pursuant to a Transfer Supplement entered into in
accordance with Section 12.10(c).

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

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

     “APA Bank Percentage” means, with respect to any APA Bank, the percentage set
forth opposite the name of such APA Bank on Schedule I or in the Transfer Supplement or the
Purchaser Group Supplement pursuant to which such APA Bank became a party to this Indenture
Supplement.

     “Applicable Law” means all provisions of statutes, rules, regulations and
orders of governmental bodies or regulatory agencies applicable to a Person, and all orders
and decrees of all courts and arbitrators in proceedings or actions in which the Person in
question is a party.

     “Applicable Margin” is defined in the Fee Letter.

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

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

     “Available APA Bank Funding Amount” means, with respect to any CP Conduit
Purchaser Group for any Business Day, the sum of (i) the portion of such CP Conduit
Purchaser Group’s Commitment Percentage of the Class A Initial Invested Amount not to be
funded by such CP Conduit Purchaser Group by issuing Commercial Paper if such Business Day
is the Series 2010-1 Initial Funding Date, (ii) the portion of the APA Bank Funded Amount
with respect to such CP Conduit Purchaser Group not allocated to a Eurodollar Tranche on
such Business Day, (iii) the portion of the APA Bank Funded Amount with respect to such CP
Conduit Purchaser Group allocated to any Eurodollar Tranche the Eurodollar Period in respect
of which expires on such Business Day and (iv) the portion of the Purchaser Group Increase
Amount with respect to such CP Conduit Purchaser Group for such Business Day not to be
funded by such CP Conduit Purchaser Group by issuing Commercial
Paper; provided, however,
that the Available APA Bank
Funding Amount with respect to any CP Conduit Purchaser Group shall not include any
portion thereof accruing interest at the sole discretion of the CP Conduit Purchaser in

 

4

such
CP Conduit Purchaser Group at a rate per annum equal to the LIBO Rate with respect to such
day plus the Program Fee Rate with respect to such CP Conduit Purchaser Group.

     “Available CP Funding Amount” means, with respect to any CP Conduit Purchaser
Group for any Business Day, the sum of (i) the portion of such CP Conduit Purchaser Group’s
Commitment Percentage of the Class A Initial Invested Amount to be funded by such CP Conduit
Purchaser Group by issuing Commercial Paper if such Business Day is the Series 2010-1
Initial Funding Date, (ii) the portion of the CP Conduit Funded Amount with respect to such
CP Conduit Purchaser Group allocated to any CP Tranche, the CP Rate Period in respect of
which expires on such Business Day and (iii) the portion of the Purchaser Group Increase
Amount with respect to such CP Conduit Purchaser Group for such Business Day to be funded by
such CP Conduit Purchaser Group by issuing Commercial Paper.

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

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

     “Calculation Agent” means The Bank of New York Mellon, in its capacity as
calculation agent with respect to the Class B Note Rates.

     “Capital Lease” means as applied to any Person, any lease of any property
(whether real, personal or mixed) by that Person as lessee which, in accordance with
generally accepted accounting principles as in effect on the date hereof, is or should be
accounted for as a capital lease on the balance sheet of that Person.

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

     “Change in Control” means either (a) any of VMS, Holdings or the Issuer ceases
to be a wholly-owned Subsidiary of PHH or (b)(i) the acquisition by any Person or group
(within the meaning of the Exchange Act and the rules of the Securities and Exchange
Commission thereunder as in effect on January 1, 2006), directly or indirectly, beneficially
or of record, of ownership or control of in excess of 50% of the voting common stock of PHH
on a fully diluted basis at any time or (ii) if at any time, individuals who on January 1,
2006 constituted the Board of Directors of PHH (together with any new directors whose
election by such Board of Directors or whose nomination for election by the shareholders of
PHH, as the case may be, was approved by a vote of the majority of the directors then still
in office who were either directors on January 1, 2006 or whose election or nomination for
election was previously so approved) cease for any reason to constitute a majority of the
Board of Directors of PHH then in office.

     “Charge-Off Ratio” means, for any specified Settlement Date, twelve times the
quotient, expressed as a percentage, of (a) Aggregate Net Lease Losses for the preceding
Monthly Period, divided by (b) the Aggregate Lease Balance as of the last day of the second
preceding Monthly Period.

 

5

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

     “Class A Contingent Monthly Funding Costs” means, with respect to:

     (a) any CP Conduit Purchaser Group, the sum of:

     (i) with respect to any Series 2010-1 Interest Period, the excess, if
any, of (A) the amount calculated for such Series 2010-1 Interest Period
pursuant to clause (a)(i) of the definition of Class A Monthly Funding Costs
with respect to such CP Conduit Purchaser Group over (B) an amount equal to
the sum of the product for each day during such Series 2010-1 Interest
Period of (I) the CP Conduit Funded Amount with respect to such CP Conduit
Purchaser Group on such day and (II) a rate per annum equal to the sum of
(x) the ABS CP Index on such day and (y) 1.00% divided by (III) 360; and

     (ii) with respect to any Series 2010-1 Interest Period, the excess, if
any, of (i) the amount calculated for such Series 2010-1 Interest Period
pursuant to clause (a)(ii) of the definition of Class A Monthly Funding
Costs or the proviso at the end of said definition with respect to such CP
Conduit Purchaser Group over (ii) an amount equal to the sum of the product
for each day during such Series 2010-1 Interest Period of (A) the APA Bank
Funded Amount with respect to such CP Conduit Purchaser Group on such day
and (B) a rate per annum equal to the sum of (x) One-Month LIBOR for such
Series 2010-1 Interest Period and (y) the Applicable Margin on such day
divided by (C) 360; and

     (b) any Non-Conduit Purchaser Group, with respect to any Series 2010-1 Interest
Period, the excess, if any, of the amount calculated for such Series 2010-1 Interest
Period pursuant to clause (b) of the definition of Class A Monthly Funding Costs or
the proviso at the end of said definition with respect to such Non-Conduit Purchaser
Group over (ii) an amount equal to the sum of the product for each day during such
Series 2010-1 Interest Period of (A) the Purchaser Group Invested Amount with
respect to such Non-Conduit Purchaser Group on such day and (B) a rate per annum
equal to the sum of (x) One-Month LIBOR for such Series 2010-1 Interest Period and
(y) the Applicable Margin on such day divided by (C) 360.

     “Class A Contingent Monthly Funding Costs Shortfall” is defined in Section
5A.3(c).

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

     “Class A Initial Invested Amount” is defined in Section 2.3(a).

 

6

     “Class A Invested Amount” means, on any date of determination, the sum of the
Purchaser Group Invested Amounts with respect to each of the Purchaser Groups on such date.

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

     “Class A Investor Notes” means any one of the Series 2010-1 Floating Rate Asset
Backed Variable Funding Investor Notes, Class A, executed by the Issuer and authenticated by
or on behalf of the Indenture Trustee, substantially in the form of Exhibit A.

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

     “Class A Maximum Purchaser Group Invested Amount” means, with respect to (a)
any CP Conduit Purchaser Group, the amount set forth opposite the name of the CP Conduit
Purchaser included in such CP Conduit Purchaser Group on Schedule I or in the Purchaser
Group Supplement pursuant to which such CP Conduit Purchaser Group became a party to this
Indenture Supplement or (b) any Non-Conduit Purchaser Group, the amount set forth opposite
the name of such Non-Conduit Purchaser Group on Schedule I or in the Purchaser Group
Supplement pursuant to which such Non-Conduit Purchaser Group became a party to this
Indenture Supplement, in each case, as such amount may be increased or reduced from time to
time as provided in Section 2.6. The Class A Maximum Purchaser Group Invested
Amount with respect to each Non-Extending Purchaser Group shall be reduced to zero on the
Scheduled Expiry Date with respect to such Purchaser Group.

     “Class A Monthly Funding Costs” means, with respect to each Series 2010-1
Interest Period and:

     (a) any CP Conduit Purchaser Group, the sum of:

     (i) for each day during such Series 2010-1 Interest Period, (A) with
respect to a Match Funding CP Conduit Purchaser, the aggregate amount of
Discount accruing on all outstanding Commercial Paper issued by, or for the
benefit of, such Match Funding CP Conduit Purchaser to fund the
CP Conduit Funded Amount with respect to such Match Funding CP Conduit
Purchaser on such day or (B) with respect to a Pooled Funding CP Conduit
Purchaser, the aggregate amount of Discount accruing on or otherwise in
respect of the Commercial Paper issued by, or for the benefit of, such
Pooled Funding CP Conduit Purchaser allocated, in whole or in part, by the
Funding Agent with respect to such Pooled Funding CP

 

7

Conduit Purchaser, to
fund the purchase or maintenance of the CP Conduit Funded Amount with
respect to such Pooled Funding CP Conduit Purchaser;

plus

     (ii) for each day during such Series 2010-1 Interest Period, the sum
of:

     (A) the product of (I) the portion of the APA Bank Funded Amount
with respect to such CP Conduit Purchaser Group allocated to the
Floating Tranche with respect to such CP Conduit Purchaser Group on
such day times (II) the Alternate Base Rate (or, in the sole
discretion of the CP Conduit Purchaser in such CP Conduit Purchaser
Group, at a rate per annum equal to the LIBO Rate with respect to
such day plus the Program Fee Rate with respect to such CP Conduit
Purchaser Group in effect on such day), divided by (III) 365 (or 366,
as the case may be) (or, in the case of interest accruing at the LIBO
Rate at the option of the CP Conduit Purchaser, 360) ;

     plus

     (B) the product of (I) the portion of the APA Bank Funded Amount
with respect to such CP Conduit Purchaser Group allocated to
Eurodollar Tranches with respect to such CP Conduit Purchaser Group
on such day times (B) the weighted average Adjusted LIBO Rate with
respect to such Eurodollar Tranches plus the Applicable Margin in
effect on such day divided by (C) 360;

     plus

     (iii) for each day during such Series 2010-1 Interest Period, the
product of (A) the CP Conduit Funded Amount with respect to such CP Conduit
Purchaser Group on such day times (B) the Program Fee Rate with respect to
such CP Conduit Purchaser Group in effect on such day, divided by (C) 360;
or

     (b) any Non-Conduit Purchaser Group, the sum for each day during such Series
2010-1 Interest Period of the product of (i) the Purchaser Group Invested
Amount with respect to such Non-Conduit Purchaser Group on such day times (ii)
the sum of (A) the LIBO Rate with respect to such day and (B) the Program Fee Rate
with respect to such Non-Conduit Purchaser Group in effect on such day, divided by
(C) 360; provided, however, that if any Change in Law shall make it unlawful for any
Non-Conduit Purchaser Group to fund its Purchaser Group Invested Amount at the LIBO
Rate and such Non-Conduit Purchaser Group shall have notified the Administrative
Agent in writing thereof (and not subsequently notified the Administrative Agent
such circumstances no longer exist), the

 

8

amount for each day with respect to such
Non-Conduit Purchaser Group will be calculated using the Alternate Base Rate on such
day in clause (ii) hereof (rather than the sum of the LIBO Rate and the Program Fee
Rate);

provided, however, that, after the occurrence and during the continuance of an
Amortization Event, the amount for each day with respect to each Purchaser Group shall equal
the product of (x) the Purchaser Group Invested Amount with respect to such Purchaser Group
on such day times (y) the sum of (A) Alternate Base Rate on such day and (B) 4.05% divided
by (z) 365 (or 366, as the case may be).

     “Class A Monthly Funding Costs Shortfall” means a Class A Senior Monthly
Funding Costs Shortfall or a Class A Contingent Monthly Funding Costs Shortfall.

     “Class A Monthly Interest” is defined in Section 5A.3(a).

     “Class A Note Rate” means for any Series 2010-1 Interest Period, the interest
rate equal to the product of (a) the percentage equivalent of a fraction, the numerator of
which is equal to the sum of the Class A Monthly Funding Costs with respect to each
Purchaser Group for such Series 2010-1 Interest Period and the denominator of which is equal
to the average daily Class A Invested Amount during such Series 2010-1 Interest Period and
(b) a fraction, the numerator of which is 360 and the denominator of which is the number of
days in such Series 2010-1 Interest Period; provided, however, that the
Class A Note Rate will in no event be higher than the maximum rate permitted by applicable
law.

     “Class A Participants” means APA Bank Participants and Non-Conduit Purchaser
Participants.

     “Class A Senior Monthly Funding Costs” means, with respect to each Series
2010-1 Interest Period and any Purchaser Group, the excess of (a) the Class A Monthly
Funding Costs over (b) the Class A Contingent Monthly Funding Costs, in each case, with
respect to such Series 2010-1 Interest Period and such Purchaser Group.

     “Class A Senior Monthly Funding Costs Shortfall” is defined in Section
5A.3(c).

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

     “Class B Additional Interest” is defined in Section 5A.3(c).

     “Class B Contingent Monthly Interest” means, with respect to any Series 2010-1
Interest Period, an amount equal to the excess, if any, of (a) Class B Monthly Interest with
respect to such Series 2010-1 Interest Period over (b) an amount equal to the product of (i)
the sum of (A) One-Month LIBOR for such Series 2010-1 Interest Period and (B) 2.00%, (ii)
the Class B Invested Amount on the first day of such Series 2010-1 Interest Period, after
giving effect to any principal payments made on such date, or, in the case of the initial
Series 2010-1 Interest Period, the Class B Initial Invested Amount, and (iii) a fraction,
the numerator of which is the number of days in such Series 2010-1 Interest Period and the
denominator of which is 360.

 

9

     “Class B Contingent Monthly Interest Payment” is defined in Section
5A.3(c).

     “Class B Contingent Monthly Interest Shortfall” is defined in Section
5A.3(c).

     “Class B Initial Invested Amount” means the aggregate initial principal amount
of the Class B Investor Notes, which is $32,967,033.

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

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

     “Class B Investor Notes” means any one of the Series 2010-1 Floating Rate Asset
Backed Investor Notes, Class B, executed by the Issuer and authenticated by or on behalf of
the Indenture Trustee, substantially in the form of Exhibit B.

     “Class B Monthly Interest” means, with respect to any Series 2010-1 Interest
Period, an amount equal to the product of (i) the Class B Note Rate for such Series 2010-1
Interest Period, (ii) the Class B Invested Amount on the first day of such Series 2010-1
Interest Period, after giving effect to any principal payments made on such date, or, in the
case of the initial Series 2010-1 Interest Period, the Class B Initial Invested Amount, and
(iii) a fraction, the numerator of which is the number of days in such Series 2010-1
Interest Period and the denominator of which is 360 (or, if the Class B Note Rate for such
Series 2010-1 Interest Period is based on the Alternate Base Rate, 365 (or 366, as the case
may be)).

     “Class B Monthly Interest Shortfall” means a Class B Senior Monthly Interest
Shortfall or a Class B Contingent Monthly Interest Shortfall.

     “Class B Note Margin” means 2.00% per annum, as such amount may be increased or
decreased in accordance with Section 12.7.

     “Class B Note Purchase Commitment” means, with respect to any Class B Note
Purchaser, the amount set forth opposite the name of such Class B Note Purchaser on Schedule
II.

     “Class B Note Purchaser” is defined in the preamble hereto.

     “Class B Note Rate” means, with respect to (a) the initial Series 2010-1
Interest Period, 2.35% per annum and (b) each Series 2010-1 Interest Period thereafter, a
rate per annum equal to One-Month LIBOR for such Series 2010-1 Interest Period plus the
Class B Note Margin; provided, however that, after the occurrence and during the continuance
of an Amortization Event, the Class B Note Rate for each Series 2010-1 Interest Period (or
portion thereof) will equal the sum of (i) the Alternate Base Rate on each day during such
Series 2010-1 Interest Period (or portion thereof) and (ii) 4.05%.

 

10

     “Class B Participants” is defined in Section 12.10(g).

     “Class B Senior Monthly Interest” means, with respect to each Series 2010-1
Interest Period, the excess of (a) Class B Monthly Interest over (b) Class B Contingent
Monthly Interest, in each case, with respect to such Series 2010-1 Interest Period.

     “Class B Senior Monthly Interest Payment” is defined in Section
5A.3(c).

     “Class B Senior Monthly Interest Shortfall” is defined in Section
5A.3(c).

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

     “Commitment” means, with respect to (a) the APA Banks included in any CP
Conduit Purchaser Group, the obligation of such APA Banks to purchase a Class A Investor
Note on the Series 2010-1 Initial Funding Date and, thereafter, to maintain and, subject to
certain conditions, increase the Purchaser Group Invested Amount with respect to such CP
Conduit Purchaser Group, in each case, in an amount up to the Class A Maximum Purchaser
Group Invested Amount with respect to such CP Conduit Purchaser Group or (b) any Non-Conduit
Purchaser Group, the obligation of the Related Non-Conduit Purchaser to purchase a Class A
Investor Note on the Series 2010-1 Initial Funding Date and, thereafter, to maintain and,
subject to certain conditions, increase the Purchaser Group Invested Amount with respect to
such Non-Conduit Purchaser Group, in each case, in an amount up to the Class A Maximum
Purchaser Group Invested Amount with respect to such Non-Conduit Purchaser Group.

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

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

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

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

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

     “Consolidated Net Worth” means, at any date of determination, all amounts
which would be included on a balance sheet of PHH and the Consolidated Subsidiaries under
stockholders’ equity as of such date in accordance with generally accepted accounting
principles as in effect on the date hereof.

 

11

     “Consolidated Subsidiaries” means all Subsidiaries that are required to be
consolidated with PHH for financial reporting purposes in accordance with in accordance with
generally accepted accounting principles as in effect on the date hereof.

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

     “CP Conduit Purchaser” means each commercial paper conduit listed on Schedule I
or party to a Purchaser Group Supplement pursuant to which such commercial paper conduit
became a party to this Indenture Supplement.

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

     “CP Rate Period” means, with respect to any CP Tranche, a period of days not to
exceed 270 days commencing on a Business Day selected in accordance with Section
2.7(b); provided that (x) if a CP Rate Period would end on a day that is not a
Business Day, such CP Rate Period shall end on the next succeeding Business Day and (y)
during the Series 2010-1 Amortization Period, each CP Rate Period shall end on or prior to
the next succeeding Payment Date.

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

     “Daily Principal Utilization Amount” means, for any Business Day, the sum of
the following amounts to be withdrawn from the Series 2010-1 Principal Collection Subaccount
pursuant to Section 5A.2(g) on such Business Day: (i) the amount of any Decrease to be
applied to reduce the Class A Invested Amount pursuant to Section 2.5, (ii) the
amount that the Issuer has elected to apply to reduce the principal amount of any
Outstanding Series of Investor Notes (other than the Series 2010-1 Investor Notes) and
(iii) the portion of the Loan to be made to Holdings on such Business Day pursuant to
the Loan Agreement to be financed with the proceeds of the Series 2010-1 Investor Notes.

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

     “Defaulting Purchaser Group” means (a) any CP Conduit Purchaser Group that
includes an APA Bank that, as determined by the Administrative Agent, has (i) failed to fund
any portion of an Increase Amount hereunder within three (3) Business Days of the date
required to be funded by it hereunder, (ii) notified the Issuer or the Administrative Agent
in writing that it does not intend to comply with any of its funding obligations hereunder
or has made a public statement to the effect that it does not intend to comply with its
funding obligations hereunder, (iii) failed, within three (3) Business Days after request by
the Administrative Agent, to confirm that it will comply with the terms of this

 

12

Indenture
Supplement relating to its obligations to fund prospective Increase Amounts hereunder, (iv)
otherwise failed to pay over to the Administrative Agent, its related Funding Agent or any
Person included in the same CP Conduit Purchaser Group any other amount required to be paid
by it hereunder within three (3) Business Days of the date when due, unless the subject of a
good faith dispute, or (v) (A) become the subject of a bankruptcy or insolvency proceeding,
or has had a receiver, conservator, trustee or custodian appointed for it or (B) has a
parent company that has become the subject of a bankruptcy or insolvency proceeding, or a
receiver, conservator, trustee or custodian has been appointed for such parent company or
(b) any Non-Conduit Purchaser Group the Non-Conduit Purchaser of which, as determined by the
Administrative Agent, has (i) failed to fund any portion of an Increase Amount hereunder
within three (3) Business Days of the date required to be funded by it hereunder, (ii)
notified the Issuer or the Administrative Agent in writing that it does not intend to comply
with any of its funding obligations hereunder or has made a public statement to the effect
that it does not intend to comply with its funding obligations hereunder, (iii) failed,
within three (3) Business Days after request by the Administrative Agent, to confirm that it
will comply with the terms of this Indenture Supplement relating to its obligations to fund
prospective Increase Amounts hereunder, (iv) otherwise failed to pay over to the
Administrative Agent any other amount required to be paid by it hereunder within three (3)
Business Days of the date when due, unless the subject of a good faith dispute, or (v) (A)
become the subject of a bankruptcy or insolvency proceeding, or has had a receiver,
conservator, trustee or custodian appointed for it or (B) has a parent company that has
become the subject of a bankruptcy or insolvency proceeding, or a receiver, conservator,
trustee or custodian has been appointed for such parent company.

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

     “Delinquency Ratio” means, for any specified Settlement Date, the quotient,
expressed as a percentage, of (a) the aggregate billings with respect to all Leases and all
Fleet Receivables which were unpaid for 60 days or more from the original due date thereof
as of the last day of the immediately preceding Monthly Period divided by (b) the sum of (i)
the aggregate billings with respect to all Leases and all Fleet Receivables which were
unpaid as of the last day of the second preceding Monthly Period and (ii) the
aggregate amount billed with respect to all Leases and all Fleet Receivables during the
immediately preceding Monthly Period.

     “Discount” means, (a) with respect to any Match Funding CP Conduit Purchaser,
the interest or discount component of the Commercial Paper issued by such Match Funding CP
Conduit Purchaser to fund or maintain the CP Conduit Funded Amount with respect to such
Match Funding CP Conduit Purchaser, including an amount equal to the portion of the face
amount of the outstanding Commercial Paper issued to fund or maintain the CP Conduit Funded
Amount with respect to such CP Conduit Purchaser that corresponds to the portion of the
proceeds of such Commercial Paper that was used to pay the interest or discount component of
maturing Commercial Paper issued to fund or maintain such CP Conduit Funded Amount, to the
extent that such CP Conduit Purchaser has not received payments of interest in respect of
such interest component prior to the maturity date of such maturing Commercial Paper, and
including the portion of such

 

13

interest or discount component constituting dealer or
placement agent commissions and (b) with respect to any Pooled Funding CP Conduit Purchaser,
the amount of interest or discount to accrue on or in respect of the Commercial Paper issued
by such Pooled Funding CP Conduit Purchaser allocated, in whole or in part, by the Funding
Agent with respect to such Pooled Funding CP Conduit Purchaser, to fund the purchase or
maintenance of the CP Conduit Funded Amount with respect to such Pooled Funding CP Conduit
Purchaser (including, without limitation, any interest attributable to the commissions of
placement agents and dealers in respect of such Commercial Paper and any costs associated
with funding small or odd-lot amounts, to the extent that such commissions or costs are
allocated, in whole or in part, to such Commercial Paper by such Funding Agent).

     “Effective Date” is defined in Section 9.1.

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

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

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

     (a) initially, the period commencing on the Series 2010-1 Initial Funding Date,
the Increase Date or a conversion date, as the case may be, with respect to such
Eurodollar Tranche and ending one month thereafter (or such other period which is
acceptable to the Funding Agent with respect to such CP Conduit Purchaser Group and
which in no event will be less than 7 days); and

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

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

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

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

 

14

in the
calendar month at the end of such Eurodollar Period) shall end on the last Business
Day of the calendar month at the end of such Eurodollar Period.

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

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

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

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

over (b) an amount equal to 31.50% of the Aggregate Unit Balance as of such Settlement Date.

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

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

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

over (b) an amount equal to 5.00% of the Aggregate Unit Balance as of such Settlement Date.

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

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

 

15

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

over (b) an amount equal to 2.00% of the Aggregate Unit Balance as of such Settlement Date.

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

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

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

over (b) an amount equal to 7.50% of the Aggregate Unit Balance as of such Settlement Date.

     “Excess High Lease Balance Amount” means, on any Settlement Date, an amount
equal to the excess, if any, of (a) the aggregate Lease Balance of all Eligible Leases
having a Lease Balance in excess of $1,000,000 allocated to the Lease SUBI as of the last
day of the Monthly Period immediately preceding such Settlement Date over (b) an amount
equal to 0.50% of the Aggregate Lease Balance as of such Settlement Date.

     “Excess Longer-Term Lease Amount” means, on any Settlement Date, an amount
equal to the greater of (a) the excess, if any, of (i) the aggregate Lease Balance of all
Eligible Leases having remaining terms of longer than five years allocated to the Lease SUBI
as of the last day of the Monthly Period immediately preceding such Settlement Date over
(ii) an amount equal to 20.00% of the Aggregate Lease Balance as of such Settlement Date and
(b) the excess, if any, of (i) the aggregate Lease Balance of all Eligible Leases having
remaining terms of longer than seven years allocated to the Lease SUBI as of the last day of
the Monthly Period immediately preceding such Settlement Date over (ii) an amount equal to
7.50% of the Aggregate Lease Balance as of such Settlement Date.

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

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

 

16

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

over (b) an amount equal to 15.00% of the Aggregate Unit Balance as of such Settlement Date.

     “Excess State Obligor Risk Amount” means, on any Settlement Date, an amount
equal to the excess, if any, of (a) the aggregate Lease Balance of all Eligible Leases the
Obligor of which is a state or local government or any subdivision thereof, or any agency,
department or instrumentality thereof allocated to the Lease SUBI as of the last day of the
Monthly Period immediately preceding such Settlement Date over (b) an amount equal to 3.00%
of the Aggregate Lease Balance as of such Settlement Date.

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

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

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

over (b) an amount equal to 3.00% of the Aggregate Unit Balance as of such Settlement Date.

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

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

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

 

17

over (y) an amount equal to 21.50% of the Aggregate Unit Balance as of such Settlement Date.

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

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

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

     over (b) an amount equal to 2.00% of the Aggregate Unit Balance as of such Settlement
Date.

     “Excluded Taxes” means, with respect to the Administrative Agent, any
Non-Conduit Purchaser, any CP Conduit Purchaser, any APA Bank, any Funding Agent, any
Program Support Provider, any Class B Note Purchaser or any other recipient of any payment
to be made by or on account of any obligation of the Issuer hereunder, (a) income or
franchise taxes imposed on (or measured by) its net income by the United States of America
or by any other Governmental Authority, in each case, as a result of a present or former
connection between the United States of America or the jurisdiction of such Governmental
Authority imposing such tax, as the case may be, and the
Administrative Agent, such Non-Conduit Purchaser, such CP Conduit Purchaser, such APA
Bank, such Funding Agent, such Program Support Provider, such Class B Note Purchaser or any
other such recipient (except a connection arising solely from the Administrative Agent’s,
such Non-Conduit Purchaser’s, such CP Conduit Purchaser’s, such APA Bank’s, such Program
Support Provider’s, such Class B Note Purchaser’s or such recipient’s having executed,
delivered or performed its obligations hereunder, receiving a payment hereunder or enforcing
the Series 2010-1 Investor Notes) and (b) any branch profits tax imposed by the United
States of America or any similar tax imposed by any other jurisdiction in which the Issuer
is located (except any such branch profits or similar tax imposed as a result of a
connection with the United States of America or other jurisdiction as a result of a
connection arising solely from the Administrative Agent’s, such Non-Conduit Purchaser’s,
such CP Conduit Purchaser’s, such APA Bank’s, such Program Support Provider’s, such Class B
Note Purchaser’s or such recipient’s having executed, delivered or performed its obligations
hereunder, receiving a payment hereunder or enforcing the Series 2010-1 Investor Notes).

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

 

18

     “Extending Purchaser Group” means a Purchaser Group other than a Non-Extending
Purchaser Group.

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

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

     “Final Maturity Date” means the Payment Date that occurs in the 125th month
after the month in which the Series 2010-1 Amortization Period shall have commenced.

     “Finance Charge Rate” means the actual or implicit finance charge rate,
exclusive of any management or administrative fee.

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

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

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

     “Funding Agent” means, with respect to each CP Conduit Purchaser and its CP
Conduit Purchaser Group, the agent bank set forth opposite the name of such CP Conduit
Purchaser on Schedule I or in the Purchaser Group Supplement pursuant to which such CP
Conduit Purchaser became a party to this Indenture Supplement.

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

     “Guaranty” means, as to any Person, any direct or indirect obligation of such
Person guaranteeing or intended to guarantee any Indebtedness, Capital Lease, dividend or
other monetary obligation (“primary obligation”) of any other Person (the “primary obligor”)
in any manner, whether directly or indirectly, including, without limitation, any obligation
of such Person, whether or not contingent, (a) to purchase any such primary obligation or
any property constituting direct or indirect security therefor, (b) to advance or supply
funds (i) for the purchase or payment of any such primary obligation or (ii) to

 

19

maintain
working capital or equity capital of the primary obligor or otherwise to maintain the net
worth or solvency of the primary obligor, (c) to purchase property, securities or services,
in each case, primarily for the purpose of assuring the owner of any such primary obligation
of the repayment of such primary obligation or (d) as a general partner of a partnership or
a joint venturer of a joint venture in respect of indebtedness of such partnership or such
joint venture which is treated as a general partnership for purposes of Applicable Law. The
amount of any Guaranty shall be deemed to be an amount equal to the stated or determinable
amount (or portion thereof) of the primary obligation in respect of which such Guaranty is
made or, if not stated or determinable, the maximum reasonably anticipated liability in
respect thereof (assuming such Person is required to perform thereunder); provided
that the amount of any Guaranty shall be limited to the extent necessary so that such amount
does not exceed the value of the assets of such Person (as reflected on a consolidated
balance sheet of such Person prepared in accordance with generally accepted accounting
principles as in effect on the date hereof) to which any creditor or beneficiary of such
Guaranty would have recourse. Notwithstanding the foregoing definition, the term “Guaranty”
shall not include any direct or indirect obligation of a Person as a general partner of a
general partnership or a joint venturer of a joint venture in respect of Indebtedness of
such general partnership or joint venture, to the extent such Indebtedness is contractually
non recourse to the assets of such Person as a general partner or joint venturer (other than
assets comprising the capital of such general partnership or joint venture).

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

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

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

     “Increased Costs” means, for each Payment Date, the sum of (1) any Article 7
Costs due and payable on such Payment Date, (2) any other unpaid Program Costs due and
payable on such Payment Date, (3) any amounts due and payable pursuant to Section
2.8 on such Payment Date and (4) the Increased Costs Carry Forward Amount for the
preceding Payment Date.

     “Increased Costs Carry Forward Amount” means, for each Payment Date, the
excess, if any, of (a) Increased Costs for such Payment Date over (b) the aggregate amount
deposited in the Series 2010-1 Distribution Account on account of the Increased Costs for
such Payment Date pursuant to Sections 5A.4(c)(xvii).

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

     “Indebtedness” means (i) all indebtedness, obligations and other liabilities
of PHH and the Subsidiaries which are, at the date as of which Indebtedness is to be
determined, includable as liabilities in a consolidated balance sheet of PHH and the
Subsidiaries, other than (w) accounts payable, accrued expenses and derivatives transactions
entered into in the ordinary course of business pursuant to hedging programs,

 

20

(x) advances
from clients obtained in the ordinary course of the relocation management services business
of PHH and the Subsidiaries, (y) current and deferred income taxes and other similar
liabilities and (z) minority interest, plus (ii) without duplicating any items included in
Indebtedness pursuant to the foregoing clause (i) (but excluding reinsurance obligations of
Atrium Insurance Corporation), the maximum aggregate amount of all liabilities of PHH or any
of the Subsidiaries under any Guaranty, indemnity or similar undertaking given or assumed
of, or in respect of, the indebtedness, obligations or other liabilities, assets, revenues,
income or dividends of any Person other than PHH or one of the Subsidiaries and (iii) all
other obligations or liabilities of PHH or any of the Subsidiaries in relation to the
discharge of the obligations of any Person other than PHH or one of the Subsidiaries.

     “Indemnified Taxes” means Taxes other than Excluded Taxes.

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

     “JPMorgan Chase” means JPMorgan Chase Bank, N.A., and its successors and
assigns.

     “Lease Rate Cap Costs” means, for each Payment Date, any amounts owed by the
Issuer to the Series 2010-1 Investor Noteholders pursuant to Section 5A.12(e) on
such Payment Date.

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

     “LIBO Rate” means, (a) with respect to each day during each Eurodollar Period
pertaining to a Eurodollar Tranche, the rate per annum shown on the display designated as
“LIBOR01” on the Reuters Money 3000 Service for a period equal to such Eurodollar Period at
11:00 A.M., London time, on the second London Business Day prior to the commencement of such
Eurodollar Period or (b) with respect to each day during a Series 2010-1 Interest Period,
the rate per annum shown on the display designated as “LIBOR01” on the Reuters Money 3000
Service for a period equal to such Series 2010-1 Interest Period as of 11:00 A.M., London
time, on such day, or if such day is not a London Business Day, on the immediately preceding
London Business Day; provided that in the event no such rate is shown, the LIBO Rate
shall be determined by reference to such other comparable available service for displaying
eurodollar rates as may be reasonably selected by the Administrative Agent; provided
further that in the event no such service is available, the LIBO Rate shall be a
rate per annum at which dollar deposits are offered by the principal office of JPMorgan
Chase in London, England to prime banks in the London interbank market at 11:00 A.M., London
time, on the second London Business Day prior to the commencement of such Eurodollar Period
for delivery on the first day of such Eurodollar Period and for a period equal to such
Eurodollar Period.

 

21

     “LIBOR Determination Date” means, with respect to any Series 2010-1 Interest
Period, the second London Business Day preceding the first day of such Series 2010-1
Interest Period.

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

     “London Business Day” means any day on which dealings in deposits in Dollars
are transacted in the London interbank market and banking institutions in London are not
authorized or obligated by law or regulation to close.

     “Management Fee Yield” means, with respect to any Unit Lease for any Settlement
Date, the product of (a) the percentage equivalent of a fraction, the numerator of which is
equal to the fixed monthly management or administrative fee payable in respect of such Unit
Lease, and the denominator of which is the Lease Balance of such Lease as of the last day of
the immediately preceding Monthly Period and (b) 12.

     “Match Funding CP Conduit Purchaser” means each CP Conduit Purchaser that is
identified on Schedule I or in the Purchaser Group Supplement pursuant to which such CP
Conduit Purchaser became a party to this Indenture Supplement as a Match Funding CP Conduit
Purchaser and each CP Conduit Purchaser that, after the Series 2010-1 Closing Date, notifies
the Issuer and the Administrative Agent in accordance with Section 2.7(d) in writing
that it is funding its CP Conduit Funded Amount with Commercial Paper issued by it, or for
its benefit, in specified CP Tranches selected in
accordance with Sections 2.7(b) and (c) and that, in each case, has not
subsequently notified the Issuer and the Administrative Agent in writing that the Issuer
will no longer be permitted to select CP Tranches in accordance with Sections 2.7(b)
and (c) in respect of the CP Conduit Funded Amount with respect to such CP Conduit
Purchaser.

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

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

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

     “Non-Conduit Purchaser” mean each financial institution or other entity (other
than a commercial paper conduit) listed on Schedule I or party to a Purchaser Group
Supplement pursuant to which such financial institution or entity became a party to this
Indenture Supplement.

     “Non- Conduit Purchaser Group” means a Non-Conduit Purchaser.

     “Non-Conduit Purchaser Participants” is defined in Section 12.10(f).

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

 

22

     “One-Month LIBOR” means, for each Series 2010-1 Interest Period thereafter, the
rate per annum determined on the related LIBOR Determination Date by the Calculation Agent
to be the rate for Dollar deposits having a maturity equal to one month that appears on the
Bloomberg Screen BTMM Page under the heading “LIBOR FIX BBAM” as of 11:00 A.M., London time,
on such LIBOR Determination Date; provided, however, that if such rate does not appear on
the Bloomberg Screen BTMM Page, One-Month LIBOR will mean, for such Series 2010-1 Interest
Period, the rate per annum equal to the arithmetic mean (rounded to the nearest
one-one-hundred-thousandth of one percent) of the rates quoted by the Reference Banks to the
Calculation Agent as the rates at which deposits in Dollars are offered by the Reference
Banks at approximately 11:00 A.M., London time, on the LIBOR Determination Date to prime
banks in the London interbank market for a period equal to one month; provided, further,
that if fewer than two quotations are provided as requested by the Reference Banks,
“One-Month LIBOR” for such Series 2010-1 Interest Period will mean the arithmetic mean
(rounded to the nearest one-one-hundred-thousandth of one percent) of the rates quoted by
major banks in New York, New York selected by the Calculation Agent, at approximately 10:00
A.M., New York City time, on the first day of such Series 2010-1 Interest Period for loans
in Dollars to leading European banks for a period equal to one month; provided, finally,
that if no such quotes are provided, “One-Month LIBOR” for such Series 2010-1 Interest
Period will mean One-Month LIBOR as in effect with respect to the preceding Series 2010-1
Interest Period.

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

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

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

     “Outstanding” means, with respect to the Series 2010-1 Investor Notes, the
Series 2010-1 Invested Amount shall not have been reduced to zero and all accrued interest
and other amounts owing on the Series 2010-1 Investor Notes and to the Administrative Agent,
the Funding Agents, the CP Conduit Purchasers, the APA Banks, the Non-Conduit Purchasers and
the Class B Note Purchasers hereunder shall not have been paid in full.

     “Overconcentration Amount” means, on any Settlement Date, an amount equal to
the greatest of (a) the excess, if any, of (i) the aggregate Lease Balance of the Eligible
Leases to which the Obligor having the largest aggregate Lease Balance of Eligible Leases
allocated to the Lease SUBI is a party as of the last day of the Monthly Period immediately
preceding such Settlement Date over (ii) an amount equal to 4.75% of the Aggregate Lease
Balance as of such Settlement Date; provided, however that if the long-term debt obligations
of such Obligor are not rated at least “Baa3” by Moody’s and at least “BBB-” by Standard &
Poor’s as of such Settlement Date, the amount in this clause (ii) shall equal 3.75% of the
Aggregate Lease Balance as of such Settlement Date, (b) the

 

23

excess, if any, of (i) the
aggregate Lease Balance of the Eligible Leases to which the Obligors having the two largest
aggregate Lease Balances of Eligible Leases allocated to the Lease SUBI are a party as of
the last day of the Monthly Period immediately preceding such Settlement Date over (ii) an
amount equal to 8.50% of the Aggregate Lease Balance as of such Settlement Date; provided,
however that if the long-term debt obligations of the Obligor having the largest aggregate
Lease Balance of Eligible Leases allocated to the Lease SUBI are not rated at least “Baa3”
by Moody’s and at least “BBB-” by Standard & Poor’s as of such Settlement Date, the amount
in this clause (ii) shall equal 7.50% of the Aggregate Lease Balance as of such Settlement
Date, (c) the excess, if any, of (i) the aggregate Lease Balance of the Eligible Leases to
which the Obligors having the four largest aggregate Lease Balances of Eligible Leases
allocated to the Lease SUBI are a party as of the last day of the Monthly Period immediately
preceding such Settlement Date over (ii) an amount equal to 17.50% of the Aggregate Lease
Balance as of such Settlement Date, (d) the excess, if any, of (i) the aggregate Lease
Balance of the Eligible Leases to which the Obligors having the five largest aggregate Lease
Balances of Eligible Leases allocated to the Lease SUBI are a party as of the last day of
the Monthly Period immediately preceding such Settlement Date over (ii) an amount equal to
18.75% of the Aggregate Lease Balance as of such Settlement Date and (e) the excess, if any,
of (i) the aggregate Lease Balance of the Eligible Leases to which the Obligors having the
ten largest aggregate Lease Balances of Eligible Leases allocated to the Lease SUBI are a
party as of the last day of the Monthly Period immediately
preceding such Settlement Date over (ii) an amount equal to 30.00% of the Aggregate
Lease Balance as of such Settlement Date.

     “Paid-In Advance Loss Ratio” means, for any specified Settlement Date, the
quotient, expressed as a percentage, of (a) the excess, if any, of (i) the aggregate Cost of
all Unit Paid-In Advance Vehicles that became Rejected Paid-In Advance Vehicles during the
immediately preceding Monthly Period over (ii) all Paid-In Advance Proceeds received by the
Servicer during the preceding Monthly Period for all Unit Paid-In Advance Vehicles that
became Rejected Paid-In Advance Vehicles during such Monthly Period and all prior Monthly
Periods divided by (b) the aggregate Cost of all Unit Paid-In Advance Vehicles that became
Rejected Paid-In Advance Vehicles during the immediately preceding Monthly Period.

     “Paydown Period” means any period from and including the Expiry Date with
respect to any Purchaser Group to but excluding the earlier of (a) the date on which the
Purchaser Group Invested Amount with respect to such Purchaser Group shall have been reduced
to zero and (b) the commencement of the Series 2010-1 Amortization Period.

     “Payment Date” means the 7th day of each month, or if such date is not a
Business Day, the next succeeding Business Day, commencing July 7, 2010.

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

 

24

administrative agent for the lenders, as amended, restated,
modified, supplemented or waived from time to time in accordance with its terms and as
renewed, refunded, replaced or refinanced in whole or in part from time to time.

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

     “Prepayment Date” is defined in Article 5.

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

     “Principal Overpayment Amount” means, for each Settlement Date, the excess, if
any, of (a) the aggregate amount withdrawn from the Series 2010-1 General Collection
Subaccount and deposited in the Series 2010-1 Principal Collection Subaccount pursuant to
Section 5A.2(f) during the immediately preceding Monthly Period over (b) the Series
2010-1 Principal Payment Amount for such Settlement Date.

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

     “Program Costs” shall mean the sum of (i) all expenses, indemnities and other
amounts due and payable to the Administrative Agent, the Non-Conduit Purchasers, the CP
Conduit Purchasers, the Funding Agents, the Program Support Providers and the APA Banks
under the Indenture or this Indenture Supplement (including, without limitation, any Article
7 Costs) and (ii) the product of (A) all unpaid fees and expenses due and payable to counsel
to, and independent auditors of, the Issuer (other than fees and expenses payable on or in
connection with the closing of the issuance of Series 2010-1 or any other Series) and (B) a
fraction, the numerator of which is the sum of the Class A Maximum Invested Amount and the
Class B Invested Amount and the denominator of which is the sum of (x) the aggregate
commitment amounts on such Business Day (in respect of any variable funding notes of any
other Outstanding Series), (y) the sum of the Class A Maximum Invested Amount and the Class
B Invested Amount plus (z) the aggregate Invested Amounts of all other Outstanding Series
(other than variable funding notes).

     “Program Support Provider” means, with respect to any CP Conduit Purchaser, (i)
the APA Bank with respect to such CP Conduit Purchaser, (ii) any other or additional Person
now or hereafter providing liquidity or extending credit, or having a commitment to extend
liquidity or credit to or for the account of, or to make purchases from, such CP Conduit
Purchaser or issuing a letter of credit, surety bond or other instrument to support any
obligations arising under or in connection with such CP Conduit Purchaser’s securitization
program, (iii) any agent, administrator or manager of such CP Conduit Purchaser or (iv) any
bank holding company in respect of any of the foregoing.

 

25

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

     “Purchase Percentage” means, with respect to any Class B Note Purchaser, the
ratio, expressed as a percentage, which such Class B Note Purchaser’s Class B Note Purchase
Commitment bears to the Class B Initial Invested Amount.

     “Purchaser Group” means a CP Conduit Purchaser Group or a Non-Conduit Purchaser
Group.

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

     “Purchaser Group Invested Amount” means, with respect to any Purchaser Group,
(a) when used with respect to the Series 2010-1 Initial Funding Date, such Purchaser Group’s
Commitment Percentage of the Class A Initial Invested Amount and (b) when used with respect
to any other date, an amount equal to (i) the Purchaser Group Invested Amount with respect
to such Purchaser Group on the immediately preceding Business
Day plus (ii) such Purchaser Group’s Commitment Percentage of any Increase Amount made
pursuant to Section 2.3 on such day minus (iii) the amount of principal payments
made to such Purchaser Group pursuant to Section 5A.7 on such date.

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

     “Rating Agencies” means, with respect to the Series 2010-1 Investor Notes,
Standard & Poor’s and Moody’s and any other nationally recognized rating agency from which a
rating for the Commercial Paper with respect to any CP Conduit Purchaser was requested by
such CP Conduit Purchaser.

     “Rating Agency Condition” means, with respect to any action specified herein as
requiring satisfaction of the Rating Agency Condition, that (i) each Rating Agency shall
have been given ten (10) days’ (or such shorter period as shall be acceptable to each Rating
Agency) prior notice thereof and that each of the Rating Agencies shall have notified the
Administrative Agent, each CP Conduit Purchaser and the Funding Agent with respect to such
CP Conduit Purchaser in writing that such action will not result in a reduction or
withdrawal of the then current rating of the Commercial Paper with respect to such CP
Conduit Purchaser and (ii) Moody’s shall have been given ten (10) days’ (or such shorter
period as shall be acceptable to Moody’s) prior notice thereof and that Moody’s shall have
notified the Issuer, the Indenture Trustee and the Administrative Agent in writing that such
action will not result in a reduction or withdrawal of the then current ratings of the
Series 2010-1 Investor Notes.

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

 

26

     “Reference Banks” means four major banks in the London interbank market
selected by the Calculation Agent.

     “Related Non-Conduit Purchaser” means, with respect to any Non-Conduit
Purchaser Group, the Non-Conduit Purchaser that is such Non-Conduit Purchaser Group.

     “Related Purchaser Group” means, with respect to (a) any Funding Agent, the CP
Conduit Purchaser identified next to such Funding Agent on Schedule I and each APA Bank
identified on Schedule I next to such CP Conduit Purchaser or the CP Conduit Purchaser and
APA Bank(s) parties to the Purchaser Group Supplement pursuant to which such Funding Agent
became a party to this Indenture Supplement, (b) any CP Conduit Purchaser, the CP Conduit
Purchaser Group of which such CP Conduit Purchaser is a member and (c) any Non-Conduit
Purchaser, the Non-Conduit Purchaser Group that is such Non-Conduit Purchaser.

     “Remaining Lease Term” means, with respect to any Series 2010-1 Yield Shortfall
Lease for any Settlement Date, the remaining number of months over which the Capitalized
Cost of the related Leased Vehicle is being depreciated thereunder as of the last day of the
immediately preceding Monthly Period.

     “Replacement Class B Note Purchaser” is defined in Section 2.10(b).

     “Replacement Purchaser Group” is defined in Section 2.10(a).

     “Residual Value Loss Ratio” means, for any specified Settlement Date, the
quotient, expressed as a percentage, of (a) the sum of the Residual Value Losses for all
Unit Vehicles that became Residual Value Vehicles during the preceding Monthly Period minus
all Termination Proceeds included in clauses (i) and (ii) of the definition thereof for the
preceding Monthly Period for all Unit Vehicles that became Residual Value Vehicles during
prior Monthly Periods divided by (b) the sum of the Stated Residual Values for all Unit
Vehicles that became Residual Value Vehicles during the preceding Monthly Period.

     “Scheduled Expiry Date” shall mean, with respect to any Purchaser Group, the
later of (a) May 31, 2011 and (b) the last day of any extension of the Commitment of the APA
Bank(s) or the Non-Conduit Purchaser included in such Purchaser Group made in accordance
with Section 2.6(b).

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

     “Series 2006-2 Indenture Supplement” means the Amended and Restated Series
2006-2 Indenture Supplement dated as of December 1, 2006, as amended, among the Issuer, VMS,
as administrator, JPMorgan Chase Bank, N.A., as administrative agent, the CP conduit
purchasers, APA banks and funding agents named therein, and the Indenture Trustee.

 

27

     “Series 2006-2 Investor Notes” means the Series 2006-2 Floating Rate Asset
Backed Variable Funding Investor Notes issued by the Issuer pursuant to the Base Indenture
as supplemented by the Series 2006-2 Indenture Supplement.

     “Series 2010-1” means Series 2010-1, the Principal Terms of which are set forth
in this Indenture Supplement.

     “Series 2010-1 Administrator Fee” is defined in Section 6.2.

     “Series 2010-1 Allocated Adjusted Aggregate Unit Balance” means, as of any date
of determination, the product of (a) the Adjusted Aggregate Unit Balance and (b) the
percentage equivalent of a fraction the numerator of which is the Series 2010-1 Required
Asset Amount as of such date and the denominator of which is the sum of (x) the Series
2010-1 Required Asset Amount and (y) the aggregate Required Asset Amounts with respect to
each other Series of Investor Notes as of such date, including all Series of Investor Notes
that have been paid in full but as to which the Amortization Period shall have not ended.

     “Series 2010-1 Allocated Asset Amount Deficiency” means, as of any date of
determination, the amount, if any, by which the Series 2010-1 Allocated Adjusted
Aggregate Unit Balance is less than the Series 2010-1 Required Asset Amount as of such
date.

     “Series 2010-1 Amortization Period” means the period commencing on the Business
Day following the earliest to occur of (i) the date on which the Expiry Date with respect to
each Purchaser Group shall have occurred, (ii) the Optional Termination Date and (iii) the
Prepayment Date and ending on the date when the Series 2010-1 Invested Amount shall have
been reduced to zero and all accrued interest and other amounts owing on the Series 2010-1
Investor Notes and to the Administrative Agent, the Non-Conduit Purchasers, the CP Conduit
Purchasers, the Funding Agents, the APA Banks and the Class B Note Purchasers shall have
been paid in full.

     “Series 2010-1 Basic Servicing Fee” is defined in Section 6.1.

     “Series 2010-1 Basis Spread” means, with respect to any Unit Lease, 1.00%.

     “Series 2010-1 Closing Date” means June 1, 2010.

     “Series 2010-1 Collateral” means the Collateral, the Series 2010-1 Reserve
Account, the Series 2010-1 Yield Supplement Account and the Series 2010-1 Distribution
Account.

     “Series 2010-1
Collection Subaccount” is defined in Section 5A.1(a).

     “Series 2010-1 Daily Principal Allocation” is defined in Section
5A.2(b).

     “Series 2010-1 Designated Account” is defined in Section 5A.13(a).

 

28

     “Series 2010-1 Distribution Account” is defined in Section 5A.11(a).

     “Series 2010-1 Eligible Counterparty” means a financial institution which has,
or has all of its obligations under its interest rate cap maintained pursuant to Section
5A.12 guaranteed by a Person that has (i) a short-term senior unsecured debt, deposit,
claims paying or credit rating of at least “A-1” by Standard & Poor’s, or if such financial
institution does not have a short-term senior unsecured debt rating by Standard &Poor’s, a
long-term senior, unsecured debt or credit rating of at least “A+” by Standard & Poor’s and
(ii) a short-term senior unsecured debt, deposit, claims paying or credit rating of “P-1”
and a long-term senior unsecured debt or credit rating of at least “A2” by Moody’s, or if
such financial institution does not have a short-term senior unsecured debt rating by
Moody’s, a long-term senior unsecured debt or credit rating of at least “A1” by Moody’s.

     “Series 2010-1 Gain on Sale Account Percentage” means 10.00%.

     “Series 2010-1 Initial Funding Date” is defined in Section 2.1(a).

     “Series 2010-1 Initial Invested Amount” means the sum of the Class A Initial
Invested Amount and the Class B Initial Invested Amount.

     “Series 2010-1 Interest Period” means a period commencing on and including a
Payment Date and ending on and including the day preceding the next succeeding Payment Date;
provided, however, that the initial Series 2010-1 Interest Period shall commence on
and include the Series 2010-1 Initial Funding Date and end on and include July 6, 2010.

     “Series 2010-1 Invested Amount” means, on any date of determination, the sum of
the Class A Invested Amount and the Class B Invested Amount on such date.

     “Series 2010-1 Invested Percentage” means, with respect to any Business Day (i)
during the Series 2010-1 Revolving Period, the percentage equivalent (which percentage shall
never exceed 100%) of a fraction the numerator of which shall be equal to the Series 2010-1
Allocated Adjusted Aggregate Unit Balance as of the end of the immediately preceding
Business Day and the denominator of which is the sum of the numerators used to determine
invested percentages for allocations for all Series of Investor Notes (and all classes of
such Series of Investor Notes), including all Series of Investor Notes that have been paid
in full but as to which the Amortization Period shall have not ended, as of the end of such
immediately preceding Business Day or (ii) during the Series 2010-1 Amortization Period, the
percentage equivalent (which percentage shall never exceed 100%) of a fraction the numerator
of which shall be equal to the Series 2010-1 Allocated Adjusted Aggregate Unit Balance as of
the end of the Series 2010-1 Revolving Period, and the denominator of which is the sum of
the numerators used to determine invested percentages for allocations for all Series of
Investor Notes (and all classes of such Series of Investor Notes), including all Series of
Investor Notes that have been paid in full but as to which the Amortization Period shall
have not ended, as of the end of the immediately preceding Business Day.

 

29

     “Series 2010-1 Investor Noteholder” means, collectively, the Class A Investor
Noteholders and the Class B Investor Noteholders.

     “Series 2010-1 Investor Notes” means, collectively, the Class A Investor Notes
and the Class B Investor Notes.

     “Series 2010-1 Liquid Credit Enhancement Deficiency” means, on any date of
determination, the amount by which the Series 2010-1 Reserve Account Amount is less than the
Series 2010-1 Required Reserve Account Amount.

     “Series 2010-1 Majority in Interest” means (a) Purchaser Groups having
Commitment Percentages aggregating 66 2/3% or more (excluding therefrom the Commitment
Percentage of any Defaulting Purchaser Group and calculating the Commitment Percentage of
each other Purchaser Group by excluding from the Class A Maximum Invested Amount the Class A
Maximum Purchaser Group Invested Amount of each Defaulting Purchaser Group) and (b) Class B
Note Purchasers holding more than 50% of the Class B Invested Amount (excluding any Class B
Investor Notes held by the Issuer or any Affiliate of the Issuer).

     “Series 2010-1 Minimum Yield Rate” means, with respect to any Unit Lease for
any Settlement Date, a rate per annum equal to the sum of (i) the Series 2010-1 Weighted
Average Cost of Funds for such Settlement Date, (ii) .245% and (iii) the Series 2010-1 Basis
Spread with respect to such Unit Lease.

     “Series 2010-1 Monthly Interest” means, with respect to any Series 2010-1
Interest Period, the sum of (i) Class A Monthly Funding Costs and (ii) Class B Monthly
Interest.

     “Series 2010-1 Monthly Residual Value Gain” means, for any Settlement Date, an
amount equal to the product of (a) the average daily Series 2010-1 Invested Percentage
during the immediately preceding Monthly Period and (b) the Monthly Residual Value Gain for
such Settlement Date.

     “Series 2010-1 Monthly Servicer Advance Reimbursement Amount” means, for each
Payment Date, an amount equal to the product of (a) the Monthly Servicer Advance
Reimbursement Amount for such Payment Date and (b) the average daily Series 2010-1 Invested
Percentage during the immediately preceding Monthly Period.

     “Series 2010-1 Note Rate” means (i) the Class A Note Rate or (ii) the Class B
Note Rate, as the context may require.

     “Series 2010-1 Note Termination Date” means the date on which the Series 2010-1
Invested Amount shall have been reduced to zero, all accrued and unpaid interest on the
Series 2010-1 Notes shall have been paid in full and all other amounts due and payable to
the Purchaser Groups and the Class B Note Purchasers hereunder shall have been paid in full.

 

30

     “Series 2010-1 Prepayment Amount” means, the sum of (a) the following amounts
with respect to each Purchaser Group:

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

     (ii) in the case of a CP Conduit Purchaser Group, the sum of (A) the sum of
(I)(x) if the CP Conduit Purchaser in such CP Conduit Purchaser Group is a Match
Funding CP Conduit Purchaser, the sum of (1) all accrued and unpaid Discount on all
outstanding Commercial Paper issued by, or for the benefit of, such Match Funding CP
Conduit Purchaser to fund the CP Funded Amount with respect to such Match Funding CP
Conduit Purchaser from the issuance date(s) thereof to but excluding the Prepayment
Date and (2) the aggregate Discount to accrue on all outstanding Commercial Paper
issued by, or for the benefit of, such Match Funding CP Conduit Purchaser to fund
the CP Funded Amount with respect to such Match Funding CP Conduit Purchaser from
and including the Prepayment Date to and excluding the maturity date of each CP
Tranche with respect to such Match Funding CP Conduit Purchaser or (y) if the CP
Conduit
Purchaser in such CP Conduit Purchaser Group is a Pooled Funding CP Conduit
Purchaser, the sum of (1) the aggregate amount of Discount on or in respect of the
Commercial Paper issued by, or for the benefit of, such Pooled Funding CP Conduit
Purchaser allocated, in whole or in part, by the Funding Agent with respect to such
Pooled Funding CP Conduit Purchaser, to fund the purchase or maintenance of the CP
Funded Amount with respect to such Pooled Funding CP Conduit Purchaser as of the
Prepayment Date and (2) the aggregate amount of Discount to accrue on or in respect
of the Commercial Paper issued by, or for the benefit of, such Pooled Funding CP
Conduit Purchaser allocated, in whole or in part, by the Funding Agent with respect
to such Pooled Funding CP Conduit Purchaser, to fund the purchase or maintenance of
the CP Funded Amount with respect to such Pooled Funding CP Conduit Purchaser from
and including the Prepayment Date to and excluding the maturity dates of such
Commercial Paper and (II) the sum of the product for each day during the period from
and including the immediately preceding Payment Date to and excluding the Prepayment
Date of (x) the CP Funded Amount with respect to such CP Conduit Purchaser Group on
such day times (y) the Program Fee Rate in effect on such day, divided by (z) 360;
plus

     (B) all accrued and unpaid interest on the APA Bank Funded Amount with
respect to such CP Conduit Purchaser Group, calculated at the Alternate Base
Rate (or, in the sole discretion of the CP Conduit Purchaser in such CP
Conduit Purchaser Group, at a rate per annum equal to the LIBO Rate with
respect to such day plus the Program Fee Rate with respect to such CP
Conduit Purchaser Group in effect on such day) or the applicable Adjusted
LIBO Rate plus the then Applicable Margin for the period from and including
the immediately preceding Payment Date to and excluding the Prepayment Date,

 

31

     or

     (iii) in the case of a Non-Conduit Purchaser Group, all accrued and unpaid
interest on the Purchaser Group Invested Amount with respect to such Non-Conduit
Purchaser Group, calculated at the LIBO Rate plus the Program Fee Rate with respect
to such Non-Conduit Purchaser Group in effect on each day for the period from and
including the immediately preceding Payment Date to and excluding the Prepayment
Date,

     plus

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

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

     (vi) without duplication, any other Program Costs then due and payable to such
Purchaser Group, and any other amounts then due and payable to such Purchaser Group
pursuant to this Indenture Supplement; and

     (b) the sum of the Class B Invested Amount plus all accrued and unpaid interest payable
to the Class B Investor Noteholders to and excluding the Prepayment Date.

     “Series 2010-1 Principal Collection Subaccount” is defined in Section
5A.1(a).

     “Series 2010-1 Principal Payment Amount” means, for any Settlement Date, an
amount equal to the product of (a) the average daily Series 2010-1 Invested Percentage
during the immediately preceding Monthly Period and (b) the Principal Payment Amount
for such Settlement Date.

     “Series 2010-1 Required Asset Amount” means, as of any date of determination,
the sum of the Series 2010-1 Invested Amount and the Series 2010-1 Required
Overcollateralization Amount as of such date.

     “Series 2010-1 Required Enhancement Amount” means, on any date of
determination, an amount equal to the sum of (a) (i) during the Series 2010-1 Revolving
Period, the Series 2010-1 Required Percentage of the Series 2010-1 Invested Amount on such
date or (ii) during the Series 2010-1 Amortization Period, the Series 2010-1 Required
Percentage of the Series 2010-1 Invested Amount on the last day of the Series 2010-1
Revolving Period plus (b) the sum of:

     (i) if the Three-Month Average Residual Value Loss Ratio with respect to the
most recent Settlement Date exceeded 12.50%, an amount equal to the product of (a)
the Series 2010-1 Invested Percentage as of the last day of the Monthly Period
immediately preceding such Settlement Date and (b) 90% of the

 

32

amount by which the
Aggregate Residual Value Amount exceeded the Excess Residual Value Amount, in each
case, as of that date; plus

     (ii) the greater of

     (A) the sum of:

     (1) an amount equal to the product of (x) the Series 2010-1 Invested
Percentage as of the last day of the Monthly Period immediately preceding
the most recent Settlement Date and (y) the Excess Equipment Amount on such
Settlement Date;

     (2) an amount equal to the product of (x) the Series 2010-1 Invested
Percentage as of the last day of the Monthly Period immediately preceding
the most recent Settlement Date and (y) the Excess Forklift Amount on such
Settlement Date;

     (3) an amount equal to the product of (x) the Series 2010-1 Invested
Percentage as of the last day of the Monthly Period immediately preceding
the most recent Settlement Date and (y) the Excess Truck Amount on such
Settlement Date;

     (4) an amount equal to the product of (x) the Series 2010-1 Invested
Percentage as of the last day of the Monthly Period immediately preceding
the most recent Settlement Date and (y) the Excess Trailer Amount on such
Settlement Date; and

     (5) an amount equal to the product of (x) the Series 2010-1 Invested
Percentage as of the last day of the Monthly Period immediately preceding
the most recent Settlement Date and (y) the Excess Truck Body Amount on such
Settlement Date; or

     (B) an amount equal to the product of
(x) the Series 2010-1 Invested Percentage as of the last day of
the Monthly Period immediately preceding such Settlement Date
and (y) the Excess Alternative Vehicle Amount on such Settlement
Date; plus

     (iii) the sum of:

     (A) an amount equal to the product of (x) the Series 2010-1 Invested
Percentage as of the last day of the Monthly Period immediately preceding
the most recent Settlement Date and (y) the Overconcentration Amount on such
Settlement Date;

     (B) an amount equal to the product of (x) the Series 2010-1 Invested
Percentage as of the last day of the Monthly Period immediately

 

33

preceding
the most recent Settlement Date and (y) the Excess Longer-Term Lease Amount
on such Settlement Date;

     (C) an amount equal to the product of (x) the Series 2010-1 Invested
Percentage as of the last day of the Monthly Period immediately preceding
the most recent Settlement Date and (y) the Excess High Lease Balance Amount
on such Settlement Date; and

     (D) an amount equal to the product of (x) the Series 2010-1 Invested
Percentage as of the last day of the Monthly Period immediately preceding
the most recent Settlement Date and (y) the Excess State Obligor Risk Amount
on such Settlement Date;

; provided, however, that, after the declaration or occurrence of an Amortization Event, the
Series 2010-1 Required Enhancement Amount shall equal the Series 2010-1 Required
Enhancement Amount on the date of the declaration or occurrence of such Amortization Event.

     “Series 2010-1 Required Investor Noteholders” means (a) so long as the Class A
Investor Notes are Outstanding, Purchaser Groups having Commitment Percentages aggregating
66 2/3% or more (excluding therefrom the Commitment Percentage of any Defaulting Purchaser
Group and calculating the Commitment Percentage of each other Purchaser Group by excluding
from the Class A Maximum Invested Amount the Class A Maximum Purchaser Group Invested Amount
of each Defaulting Purchaser Group) and (b) so long as the Class B Investor Notes are
Outstanding and no Class A Investor Notes are Outstanding, Class B Note Purchasers holding
more than 50% of the Class B Invested Amount (excluding any Class B Investor Notes held by
the Issuer or any Affiliate of the Issuer).

     “Series 2010-1 Required Overcollateralization Amount” means, on any date of
determination during an Accrual Period, the amount, if any, by which the Series 2010-1
Required Enhancement Amount exceeds the sum of (a) the Series 2010-1 Reserve Account Amount
and (b) the amount on deposit in the Series 2010-1 Principal Collection Subaccount on such
date (excluding any amounts deposited therein pursuant to Section 5A.2(f) during the Monthly
Period commencing after the first day of such Accrual Period).

     “Series 2010-1 Required Percentage” means, on any date of determination, 6.38%
unless for the most recent Settlement Date any one of the following was true:

     (a) the Three Month Average Charge-Off Ratio exceeded 0.50%,

     (b) the Three Month Average Paid-In Advance Loss Ratio exceeded 1.00%, or

     (c) the Three Month Average Delinquency Ratio exceeded 4.50%,

in which case, the Series 2010-1 Required Percentage on such date will equal 7.38%.

 

34

     “Series 2010-1 Required Reserve Account Amount” means, on any date of
determination, an amount equal to the lesser of $25,493,432 and (b) the Series 2010-1
Invested Amount.

     “Series 2010-1 Required Yield Supplement Amount” means, as of any Settlement
Date, the excess, if any, of (a) the Series 2010-1 Yield Shortfall Amount for such
Settlement Date over (b) 70% of the product of (x) the Series 2010-1 Invested Percentage on
such Settlement Date and (y) the excess of (1) the Class X 1999-1B Invested Amount for the
current Monthly Period (after giving effect to any increase thereof on such Settlement Date)
over (2) the sum, with respect to each Obligor of Eligible Receivables as of the close of
business on the first day of such Monthly Period, of the amount, if any, by which the amount
owing by such Obligor in respect of such Eligible Receivables as of
such date exceeds an amount equal to 5% of the Class X 1999-1B Invested Amount;
provided, however that upon the occurrence of a Receivables Purchase Termination Event, the
Series 2010-1 Required Yield Supplement Amount will equal the Series 2010-1 Yield Shortfall
Amount for such Settlement Date.

     “Series 2010-1 Reserve Account” is defined in Section 5A.9(a).

     “Series 2010-1 Reserve Account Amount” means, on any date of determination, the
amount on deposit in the Series 2010-1 Reserve Account and available for withdrawal
therefrom.

     “Series 2010-1 Reserve Account Surplus” means, on any date of determination,
the amount, if any, by which the Series 2010-1 Reserve Account Amount exceeds the Series
2010-1 Required Reserve Account Amount.

     “Series 2010-1 Revolving Period” means the period from and including the
Effective Date to but excluding the commencement of the Series 2010-1 Amortization Period.

     “Series 2010-1 Servicing Fee” is defined in Section 6.1.

     “Series 2010-1 Servicing Fee Percentage” is defined in Section 6.1.

     “Series 2010-1 Settlement Collection Subaccount” is defined in Section
5A.1(a).

     “Series 2010-1 Subaccounts” is defined in Section 5A.1(a).

     “Series 2010-1 Supplemental Servicing Fee” is defined in Section 6.1.

     “Series 2010-1 Weighted Average Cost of Funds” means, for any Settlement Date,
the product of (a) the quotient of the sum of (i) the sum of the Class A Monthly Funding
Costs with respect to each Purchaser Group for the Series 2010-1 Interest Period ending on
such Settlement Date and (ii) the aggregate amount of interest payable on the Class B
Investor Notes on such Settlement Date, divided by the average daily Series 2010-1 Invested
Amount during such Series 2010-1 Interest Period and (b) a fraction, the

 

35

numerator of which
is 360 and the denominator of which is the number of days in such Series 2010-1 Interest
Period.

     “Series 2010-1 Yield Shortfall” means, with respect to any Series 2010-1 Yield
Shortfall Lease for any Settlement Date, the quotient of (a) the excess of (i) the Series
2010-1 Minimum Yield Rate with respect to such Series 2010-1 Yield Shortfall Lease for such
Settlement Date over (ii) the Finance Charge Rate applicable to such Series 2010-1 Yield
Shortfall Lease on the Determination Date preceding such Settlement Date divided by (b) 12.

     “Series 2010-1 Yield Shortfall Amount” means, for any Settlement Date, the sum
of the product with respect to each Series 2010-1 Yield Shortfall Lease of (a) the Series
2010-1 Invested Percentage on such Settlement Date and (b) the excess of (i) the Series
2010-1 Yield Shortfall Lease Break Even Amount with respect to such Series 2010-1 Yield
Shortfall Lease for such Settlement Date over (ii) the product of (A) the fixed monthly
management or administrative fee payable in respect of such Series 2010-1 Yield Shortfall
Lease and (B) the Series 2010-1 Yield Shortfall Lease Remaining Term with respect to such
Series 2010-1 Yield Shortfall Lease for such Settlement Date.

     “Series 2010-1 Yield Shortfall Lease” means, as of any Settlement Date, each
Unit Lease that is a Floating Rate Lease whose Finance Charge Rate plus the Management Fee
Yield with respect to such Unit Lease for such Settlement Date is less than the Series
2010-1 Minimum Yield Rate for such Settlement Date.

     “Series 2010-1 Yield Shortfall Lease Average Balance” means, with respect to
any Series 2010-1 Yield Shortfall Lease for any Settlement Date, the excess of (a) the Lease
Balance of such Series 2010-1 Yield Shortfall Lease as of the last day of the immediately
preceding Monthly Period over (b) the product of (i) the quotient of (A) the Lease Balance
of such Series 2010-1 Yield Shortfall Lease as of the last day of the immediately preceding
Monthly Period divided by (B) the Remaining Lease Term with respect to such Series 2010-1
Yield Shortfall Lease for such Settlement Date, (ii) the Series 2010-1 Yield Shortfall Lease
Remaining Term with respect to such Series 2010-1 Yield Shortfall Lease for such Settlement
Date minus 1 and (iii) 50%.

     “Series 2010-1 Yield Shortfall Lease Break Even Amount” means, with respect to
any Series 2010-1 Yield Shortfall Lease for any Settlement Date, the product of (a) the
Series 2010-1 Yield Shortfall Lease Remaining Term with respect to such Series 2010-1 Yield
Shortfall Lease for such Settlement Date, (b) the Series 2010-1 Yield Shortfall with respect
to such Series 2010-1 Yield Shortfall Lease for such Settlement Date and (c) the Series
2010-1 Yield Shortfall Lease Average Balance with respect to such Series 2010-1 Yield
Shortfall Lease for such Settlement Date.

     “Series 2010-1 Yield Shortfall Lease Remaining Term” means, with respect to any
Series 2010-1 Yield Shortfall Lease for any Settlement Date, the excess (rounded up to the
next integer) of (a) the Remaining Lease Term with respect to such Series 2010-1 Yield
Shortfall Lease for such Settlement Date over (b) the quotient of (i) the product of (A) the
fixed monthly management or administrative fee payable in respect of such Series

 

36

2010-1
Yield Shortfall Lease and (B) the Remaining Lease Term with respect to such Series 2010-1
Yield Shortfall Lease for such Settlement Date divided by (ii) the product of (A) the Lease
Balance of such Series 2010-1 Yield Shortfall Lease as of the last day of the immediately
preceding Monthly Period and (B) the Series 2010-1 Yield Shortfall with respect to such
Series 2010-1 Yield Shortfall Lease for such Settlement Date.

     “Series 2010-1 Yield Supplement Account” is defined in Section
5A.10(a).

     “Series 2010-1 Yield Supplement Account Amount” means, on any date of
determination, the amount on deposit in the Series 2010-1 Yield Supplement Account and
available for withdrawal therefrom.

     “Series 2010-1 Yield Supplement Account Surplus” means, on any date of
determination, the amount, if any, by which the Series 2010-1 Yield Supplement Account
Amount exceeds the Series 2010-1 Required Yield Supplement Amount.

     “Series 2010-1 Yield Supplement Deficiency” means, on any date of
determination, the amount, if any, by which the Series 2010-1 Required Yield Supplement
Amount exceeds the Series 2010-1 Yield Supplement Account Amount.

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

     “Subsidiary” means with respect to PHH, any corporation, association, joint
venture, partnership or other business entity (whether now existing or hereafter organized)
of which at least a majority of the voting stock or other ownership interests having
ordinary voting power for the election of directors (or the equivalent) is, at the time as
of which any determination is being made, owned or controlled by PHH or one or more
subsidiaries of PHH or by PHH and one or more subsidiaries of PHH.

     “Tangible Net Worth” means, at any date of determination, Consolidated Net
Worth minus the aggregate book value of all intangible assets of PHH and the Consolidated
Subsidiaries as of such date in accordance with generally accepted accounting principles as
in effect on the date hereof.

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

 

37

     “Three Month Average Charge-Off Ratio” means, with respect to any Settlement
Date, the average of the Charge-Off Ratios for such Settlement Date and the two immediately
preceding Settlement Dates.

     “Three Month Average Delinquency Ratio” means, with respect to any Settlement
Date, the average of the Delinquency Ratios for such Settlement Date and the two immediately
preceding Settlement Dates.

     “Three Month Average Paid-In Advance Loss Ratio” means, with respect to any
Settlement Date, the average of the Paid-In Advance Loss Ratios for such Settlement Date and
the two immediately preceding Settlement Dates.

     “Three Month Average Residual Value Loss Ratio” means, with respect to any
Settlement Date, the average of the Residual Value Loss Ratios for such Settlement Date and
the two immediately preceding Settlement Dates.”

     “Total Cash Available” means, for any Settlement Date, the excess, if any, of
(a) the sum of (i) the aggregate amount of Collections allocated to the Series 2010-1
General Collection Subaccount pursuant to Section 5A.2(a) during the immediately
preceding Monthly Period, (ii) an amount equal to the product of the average daily Series
2010-1 Invested Percentage during such Monthly Period and the amount of the Unit Repurchase
Payments paid by the Servicer on such Settlement Date, (iii) an amount equal to the product
of the average daily Series 2010-1 Invested Percentage during such Monthly Period and the
amount of the Monthly Servicer Advance made by the Servicer on such Settlement Date, (iv) an
amount equal to the product of the average daily Series 2010-1 Invested Percentage during
such Monthly Period and the amount withdrawn from the Gain on Sale Account pursuant to
Section 5.2(e) of the Base Indenture on the Transfer Date immediately preceding such
Settlement Date and (v) the investment income on amounts on deposit in the Series 2010-1
Principal Collection Subaccount and the Series 2010-1 General Collection Subaccount
transferred to the Series 2010-1 Settlement Collection Subaccount on such Settlement Date
pursuant to Section 5A.1(b) over (b) the aggregate amount withdrawn from the Series
2010-1 General Collection Subaccount and deposited in the Series 2010-1 Principal Collection
Subaccount pursuant to Section 5A.2(f) during the immediately preceding Monthly
Period.

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

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

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

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

 

38

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

 

39

ARTICLE 2

PURCHASE AND SALE OF SERIES 2010-1 INVESTOR NOTES;

INCREASES AND DECREASES OF CLASS A INVESTED AMOUNT

          SECTION 2.1. Purchases of the Series 2010-1 Investor Notes

          (a) Initial Purchase of Class A Investor Notes. Subject to the terms and conditions
of this Indenture Supplement, including delivery of notice in accordance with Section 2.3,
(i) each Non-Conduit Purchaser shall purchase, and each CP Conduit Purchaser may, in its sole
discretion, purchase, a Class A Investor Note in an amount equal to all or a portion of its
Commitment Percentage of the Class A Initial Invested Amount on any Business Day during the period
from the Effective Date to and including the Expiry Date with respect to its Related Purchaser
Group (the “Series 2010-1 Initial Funding Date”), and if such CP Conduit Purchaser shall
have notified the Administrative Agent and the Funding Agent with respect to such CP Conduit
Purchaser that it has elected not to fund a Class A Investor Note in an amount equal to its
Commitment Percentage of the Class A Initial Invested Amount on the Series 2010-1 Initial Funding
Date, each APA Bank with respect to such CP Conduit Purchaser shall fund on the Series 2010-1
Initial Funding Date its APA Bank Percentage of that portion of such Class A Investor Note not to
be funded by such CP Conduit Purchaser and (ii) thereafter, (A) each Non-Conduit Purchaser shall
maintain its Class A Investor Note, subject to increase or decrease during the period from the
Effective Date to and including the Expiry Date with respect to its Related Purchaser Group, in
accordance with the provisions of this Indenture Supplement, (B) if a CP Conduit Purchaser shall
have purchased a Class A Investor Note on the Series 2010-1 Initial Funding Date, such CP Conduit
Purchaser may, in its sole discretion, maintain its Class A Investor Note, subject to increase or
decrease during the period from the Effective Date to and including the Expiry Date with respect to
its Related Purchaser Group, in accordance with the provisions of this Indenture Supplement and (C)
each APA Bank shall maintain the Class A Investor Note with respect to its Related Purchaser Group,
subject to increase or decrease during the period from the Effective Date to and including the
Expiry Date with respect to such Purchaser Group, in accordance with the provisions of this
Indenture Supplement. Payments by the Non-Conduit Purchasers, the CP Conduit Purchasers and/or the
APA Banks with respect to the CP Conduit Purchasers shall be made on the Series 2010-1 Initial
Funding Date in accordance with Section 2.3(e).

          (b) Initial Purchase of Class B Investor Notes. Subject to the terms and conditions
of this Indenture Supplement, including delivery of notice in accordance with Section 2.3,
on the Series 2010-1 Initial Funding Date, each Class B Note Purchaser shall purchase a Class B
Investor Note in an amount equal to its Purchase Percentage of the Class B Initial Invested Amount.
Payments by each Class B Note Purchaser shall be made in immediately available funds on the Series
2010-1 Initial Funding Date to the Indenture Trustee for deposit into the Series 2010-1 Collection
Subaccount.

          (c) Class A Maximum Purchaser Group Invested Amounts. Notwithstanding anything to the
contrary contained in this Indenture Supplement, at no time shall the Purchaser

 

40

Group Invested Amount with respect to any Purchaser Group exceed the Class A Maximum Purchaser
Group Invested Amount with respect to such Purchaser Group at such time.

          (d) Forms of Series 2010-1 Investor Notes. The Class A Investor Notes shall be issued
in fully registered form without interest coupons, substantially in the form set forth in Exhibit
A. The Class B Investor Notes shall be issued in fully registered form without interest coupons,
substantially in the form set forth in Exhibit B.

          SECTION 2.2. Delivery.

          (a) On the Series 2010-1 Initial Funding Date, the Issuer shall sign and shall direct the
Indenture Trustee in writing pursuant to Section 2.2(b)(i) of the Base Indenture to duly
authenticate, and the Indenture Trustee, upon receiving such direction, shall so authenticate a
Class A Investor Note (i) in the case of a CP Conduit Purchaser Group, in the name of the Funding
Agent with respect to such CP Conduit Purchaser Group in an amount equal to the Class A Maximum
Purchaser Group Invested Amount with respect to such CP Conduit Purchaser Group and deliver such
Class A Investor Note to such Funding Agent in accordance with such written directions or (ii) in
the case of a Non-Conduit Purchaser Group, in the name of the Related Non-Conduit Purchaser in an
amount equal to the Class A Maximum Purchaser Group Invested Amount with respect to such
Non-Conduit Purchaser Group and deliver such Class A Investor Note to or at the direction of such
Related Non-Conduit Purchaser in accordance with such written directions.

          (b) On the Series 2010-1 Initial Funding Date, the Issuer shall sign and shall direct the
Indenture Trustee in writing pursuant to Section 2.4 of the Base Indenture to duly
authenticate, and the Indenture Trustee, upon receiving such direction, shall so authenticate a
Class B Investor Note in the name of each Class B Note Purchaser or its nominee in an amount equal
to the Class B Note Purchase Commitment with respect to such Class B Note Purchaser and deliver
such Class B Investor Note to such Class B Note Purchaser in accordance with such written
directions.

          (c) The Indenture Trustee shall indicate in the Note Register the Purchaser Group Invested
Amount outstanding with respect to each Purchaser Group, the outstanding principal amount of each
Class B Investor Note Outstanding and the Series 2010-1 Invested Amount outstanding on any date of
determination, which, absent manifest error, shall constitute prima facie evidence
of the outstanding Purchaser Group Invested Amounts, the outstanding Class B Invested Amount and
outstanding Series 2010-1 Invested Amount from time to time.

          SECTION 2.3. Procedure for Initial Issuance of Series 2010-1 Investor Notes and for
Increasing the Class A Invested Amount.

          (a) Subject to Section 2.3(c), (i) on the Series 2010-1 Initial Funding Date, each
Non-Conduit Purchaser shall purchase, and each CP Conduit Purchaser may agree, in its sole
discretion, to purchase, and the APA Banks with respect to such CP Conduit Purchaser shall
purchase, a Class A Investor Note in accordance with Section 2.1 and (ii) on any Business
Day during the period from the Effective Date to and including the Expiry Date with respect to a
Purchaser Group, in the case of a Non-Conduit Purchaser Group, the Related Non-Conduit

 

41

Purchaser hereby agrees, or, in the case of a CP Conduit Purchaser Group, the CP Conduit Purchaser
in such CP Conduit Purchaser Group may agree, in its sole discretion, and the APA Banks in such CP
Conduit Purchaser Group hereby agree, that the Purchaser Group Invested Amount with respect to such
Purchaser Group may be increased by an amount equal to the Commitment Percentage of such Purchaser
Group of the Increase Amount (an “Increase”), upon the request of the Issuer (each date on
which an increase in the Class A Invested Amount occurs hereunder being herein referred to as the
“Increase Date” applicable to such Increase); provided, however, that the
Issuer shall have given the Administrative Agent (with a copy to the Indenture Trustee) irrevocable
written notice (effective upon receipt), by telecopy (receipt confirmed), substantially in the form
of Exhibit C, of such request no later than 9:30 A.M., New York City time, on the Business Day
prior to the Series 2010-1 Initial Funding Date or such Increase Date, as the case may be;
provided, further, that if the proposed amount of any Increase (the “Increase
Amount”) will be $200,000,000 or more, the Issuer shall have given the Administrative Agent
written notice thereof no later than 9:30 A.M., New York City time, on the second Business Day
prior to the proposed Increase Date. Such notice shall state (x) the Series 2010-1 Initial Funding
Date or the Increase Date, as the case may be, and (y) the initial invested amount (the “Class
A Initial Invested Amount”) or the proposed Increase Amount, as the case may be.

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

          (c) No Purchaser Group shall be required to make the initial purchase of a Class A Investor
Note on the Series 2010-1 Initial Funding Date or to increase its Purchaser Group Invested Amount
on any Increase Date hereunder unless:

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

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

     (iii) after giving effect to the initial purchase amount or Increase Amount,
no Series 2010-1 Allocated Asset Amount Deficiency, Series 2010-1 Liquid Credit
Enhancement Deficiency or Series 2010-1 Yield Supplement Deficiency would have
occurred and be continuing;

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

 

42

     (v) all of the representations and warranties made by each of the Issuer, SPV,
Holdings, the Origination Trust and the Servicer in each Transaction Document to
which it is a party are true and correct in all material respects on and as of the
Series 2010-1 Initial Funding Date or such Increase Date, as the case may be, as if
made on and as of such date (except to the extent such representations and
warranties are expressly made as of another date);

     (vi) all conditions precedent set forth in Section 11.2 of the Loan Agreement
to the funding of the Loan, if any, being funded on the Series 2010-1 Initial
Funding Date or such Increase Date, as the case may be, shall have been satisfied;
and

     (vii) in the case of the Series 2010-1 Initial Funding Date, after giving
effect to the application of the proceeds of the initial purchase of the Series
2010-1 Investor Notes, the Series 2006-2 Invested Amount (as such term is defined
in the Series 2006-2 Indenture Supplement) shall have been reduced to zero.

The Issuer’s acceptance of funds in connection with (x) the initial purchase of Class A Investor
Notes on the Series 2010-1 Initial Funding Date and (y) each Increase occurring on any Increase
Date shall constitute a representation and warranty by the Issuer to the Purchaser Groups as of the
Series 2010-1 Initial Funding Date or such Increase Date (except to the extent such representations
and warranties are expressly made as of another date), as the case may be, that all of the
conditions contained in this Section 2.3(c) have been satisfied.

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

          (e) Upon receipt of any notice required by Section 2.3(a) from the Issuer, the
Administrative Agent shall forward (by telecopy or electronic messaging system) a copy of such
notice to each Non-Conduit Purchaser and the Funding Agent with respect to each CP Conduit
Purchaser Group, no later than 1:00 P.M., New York City time, on the day received. After receipt
by any Funding Agent with respect to a Purchaser of such notice from the Administrative Agent, such
Funding Agent shall, except as otherwise provided in Section 2.3(d), so long as the
conditions set forth in Sections 2.3(a) and (c) are satisfied, promptly provide
telephonic notice to the related CP Conduit Purchaser and the related APA Banks, of the Increase
Date and of such CP Conduit Purchaser Group’s Commitment Percentage of the Class A Initial Invested
Amount or the Increase Amount. If such CP Conduit Purchaser elects to fund all or a portion of the
Commitment Percentage of such CP Conduit Purchaser Group of the Class A Initial Invested Amount or
the Increase Amount, as the case may be, such CP Conduit Purchaser shall pay in immediately
available funds such Commitment Percentage (or any portion thereof) of the Class A Initial Invested
Amount on the Series 2010-1 Initial Funding Date or the amount of such
Increase on the related Increase Date, as the case may be, to the Funding Agent with respect
to

 

43

such CP Conduit Purchaser Group for remittance to the Indenture Trustee for deposit into the
Series 2010-1 Collection Subaccount. If such CP Conduit Purchaser does not fund the full amount of
the Commitment Percentage of such CP Conduit Purchaser Group of the Class A Initial Invested Amount
or the Increase Amount, as the case may be, and the related APA Banks are required to fund the
portion thereof not funded by the CP Conduit Purchaser, each such APA Bank shall pay in immediately
available funds its APA Bank Percentage of such portion on the Series 2010-1 Initial Funding Date
or the related Increase Date, as the case may be, to the Funding Agent with respect to such CP
Conduit Purchaser Group for remittance to the Administrative Agent. Each Funding Agent shall
transfer the funds received by it from the CP Conduit Purchaser and/or APA Banks in its Related
Purchaser Group to the account of the Administrative Agent most recently designated by the
Administrative Agent for such purpose by notice to the Funding Agents. Each Non-Conduit Purchaser
shall pay in immediately available funds the Commitment Percentage of such Non-Conduit Purchaser of
the Class A Initial Invested Amount on the Series 2010-1 Initial Funding Date or the amount of such
Increase on the related Increase Date, as the case may be, to the account of the Administrative
Agent most recently designated by the Administrative Agent for such purpose by notice to the
Non-Conduit Purchasers. The Administrative Agent shall transfer the funds received by it from the
Funding Agents and the Non-Conduit Purchasers to the Indenture Trustee in like funds for deposit
into the Series 2010-1 Collection Subaccount.

          (f) Subject to this Section 2.3(f), on the Series 2010-1 Initial Funding Date, each
Class B Note Purchaser shall purchase a Class B Investor Note in accordance with Section
2.1. No Class B Note Purchaser shall be required to make the purchase of a Class B Investor
Note on the Series 2010-1 Initial Funding Date unless:

     (i) after giving effect to such purchase amount, no Series 2010-1 Allocated
Asset Amount Deficiency, Series 2010-1 Liquid Credit Enhancement Deficiency or
Series 2010-1 Yield Supplement Deficiency would have occurred and be continuing;

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

     (iii) all of the representations and warranties made by each of the Issuer,
SPV, Holdings, the Origination Trust and the Servicer in each Transaction Document
to which it is a party are true and correct in all material respects on and as of
the Series 2010-1 Initial Funding Date, as if made on and as of such date (except to
the extent such representations and warranties are expressly made as of another
date); and

     (iv) all conditions precedent set forth in Section 11.2 of the Loan Agreement
to the funding of the Loan, if any, being funded on the Series 2010-1 Initial
Funding Date shall have been satisfied.

The Issuer’s acceptance of funds in connection with the purchase of Class B Investor Notes on the
Series 2010-1 Initial Funding Date shall constitute a representation and warranty by the Issuer to
the Class B Note Purchasers as of the Series 2010-1 Initial Funding Date (except to the

 

44

extent such
representations and warranties are expressly made as of another date) that all of the conditions
contained in this Section 2.3(f) have been satisfied.

          SECTION 2.4. Sales by CP Conduit Purchasers of Class A Investor Notes to APA Banks.
Notwithstanding any limitation to the contrary contained herein, each CP Conduit Purchaser may, in
its own discretion, at any time, sell or assign all or any portion of its interest in its Class A
Investor Note to any Conduit Assignee or to the APA Bank with respect to such CP Conduit Purchaser
pursuant to, and subject to the terms and conditions of, the Asset Purchase Agreement with respect
to such CP Conduit Purchaser.

          SECTION 2.5. Procedure for Decreasing the Class A Invested Amount; Optional
Termination.

          (a) On any Business Day during the Series 2010-1 Revolving Period, upon the written request of
the Issuer or the Administrator on behalf of the Issuer, the Class A Invested Amount may be reduced
(a “Decrease”) by the Indenture Trustee’s withdrawing from the Series 2010-1 Principal
Collection Subaccount, depositing into the Series 2010-1 Distribution Account and distributing to
the Administrative Agent funds on deposit in the Series 2010-1 Principal Collection Subaccount on
such day in accordance with Section 5A.7(c) in an amount not to exceed the amount of such
funds on deposit on such day; provided that the Administrator shall have given the
Administrative Agent (with a copy to the Indenture Trustee) irrevocable written notice (effective
upon receipt) of the amount of such Decrease prior to 9:30 A.M., New York City time, on the second
Business Day prior to such Decrease, in the case of any such Decrease in an amount less than
$200,000,000, and prior to 9:30 A.M., New York City time, on a Business Day that is at least five
days prior to such Decrease, in the case of any such Decrease in an amount of $200,000,000 or more;
provided, further, that any such Decrease shall be in an amount equal to
$10,000,000 and integral multiples of $500,000 in excess thereof. Upon each Decrease, the
Indenture Trustee shall indicate in the Note Register such Decrease. Upon receipt of any notice
required by Section 2.5(a) from the Issuer, the Administrative Agent shall forward (by
telecopy or electronic messaging system) a copy of such notice to each Non-Conduit Purchaser and
the Funding Agent with respect to each CP Conduit Purchaser Group, no later than 1:00 P.M., New
York City time, on the day received.

          (b) On any Business Day, the Issuer shall have the right to deliver an irrevocable written
notice (an “Optional Termination Notice”) to the Administrative Agent, the Indenture
Trustee, the Administrator and the Rating Agencies in which the Issuer declares that the
Commitments shall terminate on the date (the “Optional Termination Date”) set forth in such
notice (which date, in any event, shall be a Payment Date not less than twenty Business Days from
the date on which such notice is delivered). Upon receipt of any Optional Termination Notice from
the Issuer, the Administrative Agent shall promptly notify each Non-Conduit Purchaser and the
Funding Agent with respect to each CP Conduit Purchaser Group thereof. From and after the
Optional Termination Date, the Series 2010-1 Amortization Period shall
commence for all purposes under this Indenture Supplement and the other Transaction Documents.

          (c) If there are funds on deposit in the Series 2010-1 Principal Collection Subaccount on any
Business Day on which the Purchaser Group Invested Amount with respect

 

45

to any Non-Extending
Purchaser Group shall not have been reduced to zero and the Issuer would be permitted under the
terms of Section 2.5(a) to effect a Decrease with such funds, the Issuer shall request
such a Decrease in accordance with Section 2.5(a) on the earliest possible date.

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

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

          (b) If the Issuer desires to extend the Scheduled Expiry Date with respect to the Purchaser
Groups, the Issuer shall notify the Class B Note Purchasers and the Administrative Agent at least
sixty (60) days prior to such Scheduled Expiry Date of its desire to extend the Scheduled Expiry
Date with respect to the Purchaser Groups, whereupon the Administrative Agent shall notify each
Non-Conduit Purchaser and the Funding Agent with respect to each CP Conduit Purchaser Group of the
Issuer’s desire to so extend the Scheduled Expiry Date. Each Non-Conduit Purchaser and each
Funding Agent, on behalf of its CP Conduit Purchaser Group, shall notify the Administrative Agent
and the Issuer in writing of whether its Related Purchaser Group agrees to an extension of the
Scheduled Expiry Date with respect to such Purchaser Group; provided that failure by a
Non-Conduit Purchaser or a Funding Agent to respond to such request shall not be construed as a
consent by such Purchaser Group to such extension. The decision to extend or not extend shall be
made by each Purchaser Group in its sole discretion. In the event that any Purchaser Group desires
to extend its Scheduled Expiry Date for an amount that is less than its Class A Maximum Purchaser
Group Invested Amount prior to the Issuer’s request for an extension, the Issuer, in its sole
discretion, may accept such extension; provided, however, that such Purchaser Group
(x) shall be deemed to be a Non-Extending Purchaser Group for purposes of Section 5A.7(c)
having a Purchaser Group Invested Amount equal to the excess of its Purchaser Group Invested Amount
over the Class A Maximum Purchaser Group Invested Amount that will be available after the extension
of its Scheduled Expiry Date and (y) shall be deemed to be an Extending Purchaser Group with a
Class A Maximum Purchaser Group Invested Amount equal to the portion of its Class A Maximum
Purchaser Group Invested Amount that will be available after the extension of its Scheduled Expiry
Date. The Issuer shall not extend the Scheduled Expiry Date with respect to any Purchaser Group
without the prior written consent of each Class B Note Purchaser. The Administrator shall provide
written notice to the Rating Agencies of any extension of the Scheduled Expiry Date with respect to
the Purchaser Groups.

          (c) On any Business Day during the Series 2010-1 Revolving Period, the Issuer may, upon two
(2) Business Days’ prior written notice to the Administrative Agent (effective upon receipt) (with
copies to the Administrator and the Indenture Trustee) reduce the Class A Maximum Invested Amount
in an amount equal to $10,000,000 or a whole multiple of $1,000,000 in excess thereof;
provided that no such termination or reduction shall be permitted

 

46

if, after giving effect
thereto and to any reduction in the Class A Invested Amount on such date, the Purchaser Group
Invested Amount with respect to any Purchaser Group would exceed the Class A Maximum Purchaser
Group Invested Amount with respect to such Purchaser Group then in effect. Any reduction in the
Class A Maximum Invested Amount shall be made on a pro rata basis to the Class A Maximum Purchaser
Group Invested Amounts with respect to the Purchaser Groups, based on the Class A Maximum Purchaser
Group Invested Amount with respect to each Purchaser Group; provided, that, if at any time
there exists a Defaulting Purchaser Group, the Issuer may, by written notice to the Administrative
Agent (who shall forward such notice to the Funding Agents), elect to allocate such reduction of
the Class A Maximum Invested Amount, first, to reduce the Class A Maximum Purchaser Group Invested
Amount of the Defaulting Purchaser Group to (but not below) the Purchaser Group Invested Amount
with respect to such Defaulting Purchaser Group and, second, to reduce the Class A Maximum
Purchaser Group Invested Amounts of the remaining Purchaser Groups as described above.

          SECTION 2.7. Interest; Fees.

          (a) Interest shall be payable on the Series 2010-1 Investor Notes on each Payment Date
pursuant to Sections 5A.5(a) and (e).

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

          (c) Notwithstanding anything to the contrary contained in this Section 2.7, (i) (A)
each Match Funding CP Conduit Purchaser shall approve the length of each CP Rate Period and the
portion of the Available CP Funding Amount with respect to such Match Funding CP

 

47

Conduit Purchaser
allocated to such CP Rate Period, (B) such Match Funding CP Conduit Purchaser may select, in its
sole discretion, any new CP Rate Period if (x) the Issuer does not provide notice of a new CP Rate
Period on a timely basis or (y) the Funding Agent with respect to such Match Funding CP
 Conduit
Purchaser, on behalf of such Match Funding CP Conduit Purchaser, determines, in its sole
discretion, that the CP Rate Period requested by the Issuer is unavailable or for any reason
commercially undesirable and (C) the portion of the Available CP Funding Amount with respect to
such Match Funding CP Conduit Purchaser allocable to each CP Tranche must be in an amount equal to
$1,000,000 or an integral multiple of $100,000 in excess thereof and (ii) (A) the portion of the
Available APA Bank Funding Amount with respect to any CP Conduit Purchaser Group allocable to each
Eurodollar Tranche must be in an amount equal to $100,000 or an integral multiple of $100,000 in
excess thereof, (B) no more than 10 Eurodollar Tranches with respect to such CP Conduit Purchaser
Group shall be outstanding at any one time, (C) after the occurrence and during the continuance of
any Amortization Event or Potential Amortization Event, the Issuer may not elect to allocate any
portion of the Available APA Bank Funding Amount with respect to any CP Conduit Purchaser Group to
a Eurodollar Tranche and (D) during the Series 2010-1 Amortization Period, the Issuer may not
select any Eurodollar Period that does not end on or prior to the next succeeding Payment Date.

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

          (e) The Indenture Trustee (acting at the written direction of the Administrator upon which the
Indenture Trustee may conclusively rely) shall distribute pursuant to Section 5A.5(b), from
amounts deposited in the Series 2010-1 Distribution Account pursuant to Section 5A.4(c), to
the Administrative Agent, for the account of each Purchaser Group, on each Payment Date, a
commitment fee (the “Commitment Fee”) in an amount equal to the sum for each day
during the period from and including the preceding Payment Date (or, in the case of the
initial Payment Date, the Series 2010-1 Closing Date) to and including the earlier of the Expiry
Date with respect to such Purchaser Group and the day preceding such Payment Date of the product of
(i) the Commitment Fee Rate times (ii) (A) in the case of a CP Conduit Purchaser Group, 102% of the
excess, if any, of the Class A Maximum Purchaser Group Invested Amount with respect to such CP
Conduit Purchaser Group over the Purchaser Group Invested Amount with respect to such CP Conduit
Purchaser Group on such day or (B) in the case of a Non-Conduit Purchaser

 

48

Group, the excess, if
any, of the Class A Maximum Purchaser Group Invested Amount with respect to such Non-Conduit
Purchaser Group over the Purchaser Group Invested Amount with respect to such Non-Conduit Purchaser
Group on such day divided by (iii) 360; provided, however, that no Defaulting Purchaser Group shall
be entitled to receive any Commitment Fee.

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

          SECTION 2.8. Indemnification by the Issuer and the Administrator

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

          (b) The Administrator agrees to indemnify and hold harmless the Indenture Trustee, the
Administrative Agent, each Funding Agent, each Purchaser Group, each Class B Note Purchaser and
each of their respective officers, directors, agents and employees (each, a “Administrator
indemnified person”) from and against any Claim by reason of (i) any acts, omissions or alleged
acts or omissions arising out of, or relating to, activities of the Administrator pursuant to the
Indenture or the other Transaction Documents to which it is a party, (ii) a breach of any
representation or warranty made or deemed made by the Administrator (or any of its officers) in the
Indenture or other Transaction Document or (iii) a failure by the Administrator to comply with any
applicable law or regulation or to perform its covenants,

 

49

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

          SECTION 2.9. Funding Agents

          (a) The Funding Agent with respect to each CP Conduit Purchaser Group is hereby authorized to
record on each Business Day the CP Funded Amount with respect to such CP Conduit Purchaser Group
and the aggregate amount of Discount accruing with respect thereto on such Business Day and the APA
Bank Funded Amount with respect to such CP Conduit Purchaser Group and the amount of interest
accruing with respect thereto on such Business Day and, based on such recordations, to determine
the Class A Monthly Funding Costs with respect to each Series 2010-1 Interest Period and such CP
Conduit Purchaser Group. Any such recordation by a Funding Agent, absent manifest error, shall
constitute prima facie evidence of the accuracy of the information so recorded.
Furthermore, the Funding Agent with respect to each CP Conduit Purchaser Group will maintain
records sufficient to identify the percentage interest of the related CP Conduit Purchaser and each
APA Bank with respect to such CP Conduit Purchaser Group holding an interest in the Class A
Investor Note registered in the name of such Funding Agent and any amounts owing thereunder.

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

          SECTION 2.10. Replacement

          (a) The Issuer shall be permitted to replace with a replacement purchaser group (a
“Replacement Purchaser Group”) any Purchaser Group that (i) requests reimbursement for
amounts owing pursuant to Section 7.2 or 7.3 or (ii), to the extent permitted by
law, is a Defaulting Purchaser Group; provided that (A) no Amortization Event shall have occurred
and be continuing at the time of such replacement (unless such Amortization Event would be cured
after giving effect to such replacement), (B) after giving effect to such replacement, such
Purchaser Group shall have been paid in full the Purchaser Group Invested Amount with respect to
such Purchaser Group and all accrued and unpaid interest thereon by the Replacement Purchaser Group
and all other amounts (including all Article 7 Costs ) owed to it and to all Class

 

50

A Participants
with respect to such Purchaser Group pursuant to this Indenture Supplement, (C) any Replacement
Purchaser Group, if not an existing Purchaser Group, shall have been consented to by the
Administrative Agent (which consent shall not be unreasonably withheld) and (D) until such time as
such replacement shall be consummated, the Issuer shall pay to such Purchaser Group all Article 7
Costs. Each member of an affected Purchaser Group hereby agrees to enter into a Purchaser Group
Supplement with a Replacement Purchaser Group with respect to the entire amount of such Purchaser
Group’s Class A Maximum Purchaser Group Invested Amount and Purchaser Group Invested Amount in
accordance with and subject to the restrictions contained in Section 12.10(e), and take all
other actions reasonably necessary, at the expense of the Issuer, to permit a Replacement Purchaser
Group to succeed to its rights and obligations hereunder. If any member of a Defaulting Purchaser
Group fails to enter into a Purchaser Group Supplement with a Replacement Purchaser Group in
accordance with Section 12.10(e) within five (5) Business Days of the date on which such
Purchaser Group Supplement shall have been executed and delivered to such member by such
Replacement Purchaser Group, then such member shall be deemed to have executed and delivered such
Purchaser Group Supplement without any action on the part of such member.

          (b) The Issuer shall be permitted to replace with a replacement purchaser (a “Replacement
Class B Note Purchaser”) any Class B Note Purchaser that (i) requests reimbursement for amounts
owing pursuant to Section 7.3, (ii) fails to give its consent for any amendment or waiver
requiring the consent of the Series 2010-1 Majority in Interest for which Purchaser Groups having
Commitment Percentages aggregating 66 2/3% or more (excluding therefrom the Commitment Percentage
of any Defaulting Purchaser Group and calculating the Commitment Percentage of each other Purchaser
Group by excluding from the Class A Maximum Invested Amount the Class A Maximum Purchaser Group
Invested Amount of each Defaulting Purchaser Group) have consented or (iii) fails to consent to the
extension of the Scheduled Expiry Date with respect to any Purchaser Group; provided that (A) no
Amortization Event shall have occurred and be continuing at the time of such replacement (unless
such Amortization Event would be cured after giving effect to such replacement), (B) after giving
effect to such replacement, such Class B Note Purchaser shall have been paid in full the portion of
the Class B Invested Amount payable to it and all accrued and unpaid interest thereon by the
Replacement Class B Note Purchaser and all other amounts (including all Article 7 Costs ) owed to
it and to all Class B Participants with respect to such Class B Note Purchaser pursuant to this
Indenture Supplement and (C) until such time as such replacement shall be consummated, the Issuer
shall pay to such Class B Note Purchaser all Article 7 Costs. Each affected Class B Note Purchaser
hereby agrees to enter into a Class B Note Transfer Supplement with a Replacement
Class B Note Purchaser with respect to the entire amount of such Class B Note Purchaser’s
portion of the Class B Invested Amount in accordance with and subject to the restrictions contained
in Section 12.10(g) and take all actions reasonably necessary, at the expense of the
Issuer, to permit a Replacement Class B Note Purchaser to succeed to its rights and obligations
hereunder.

          SECTION 2.11. Defaulting Purchaser Groups

          (a) Notwithstanding any provision of this Indenture Supplement to the contrary, if at any time
a Purchaser Group becomes a Defaulting Purchaser Group, then the following provisions shall apply:

 

51

     (i) no Commitment Fee shall accrue (or be payable) on the Class A Maximum Purchaser
Group Invested Amount of such Defaulting Purchaser Group; and

     (ii) the Commitment Percentage of such Defaulting Purchaser Group shall not be included
in determining whether the Series 2010-1 Required Investor Noteholders or all Non-Conduit
Purchasers, CP Conduit Purchasers and APA Banks have taken or may take any action hereunder;
provided that any waiver, amendment or modification requiring the consent of all
Non-Conduit Purchasers, CP Conduit Purchasers and APA Banks which affects such Defaulting
Purchaser Group differently than other affected Purchaser Groups shall require the consent
of such Defaulting Purchaser Group.

For the avoidance of doubt, no provision of this Section 2.11 shall be deemed to relieve
any Defaulting Purchaser Group of its commitment hereunder and the Issuer may pursue all rights and
remedies available to it under the law in connection with the event(s) which resulted in such
Purchaser Group becoming a Defaulting Purchaser Group.

ARTICLE 3

ARTICLE 5 OF THE BASE INDENTURE

          Sections 5.1 through 5.4 of the Base Indenture and each other Section of
Article 5 of the Indenture relating to another Series shall read in their entirety as provided in
the Base Indenture or any applicable Indenture Supplement. Article 5 of the Base Indenture
(except for Sections 5.1 through 5.4 thereof and any portion thereof relating to
another Series) shall read in its entirety as follows and shall be exclusively applicable to the
Series 2010-1 Investor Notes:

          Section 5A.1 Establishment of Series 2010-1 Subaccounts.

          (a) The Indenture Trustee shall establish and maintain in the name of the Indenture Trustee
for the benefit of the Series 2010-1 Investor Noteholders (i) a subaccount of the Collection
Account (the “Series 2010-1 Collection Subaccount”); and (ii) three subaccounts of the
Series 2010-1 Collection Subaccount: (1) the Series 2010-1 General Collection Subaccount, (2) the
Series 2010-1 Principal Collection Subaccount and (3) the Series 2010-1
Settlement Collection Subaccount (respectively, the “Series 2010-1 General Collection
Subaccount,” the “Series 2010-1 Principal Collection Subaccount” and the “Series
2010-1 Settlement Collection Subaccount”); the accounts established pursuant to this Section
5A.1(a), collectively, the “Series 2010-1 Subaccounts”), each Series 2010-1 Subaccount to
bear a designation indicating that the funds deposited therein are held for the benefit of the
Series 2010-1 Investor Noteholders. The Indenture Trustee shall possess all right, title and
interest in all moneys, instruments, securities and other property on deposit from time to time in
the Series 2010-1 Subaccounts and the proceeds thereof for the benefit of the Series 2010-1
Investor Noteholders.

          (b) So long as no Amortization Event has occurred, the Issuer shall instruct the institution
maintaining the Collection Account in writing to invest funds on deposit in the Series 2010-1
Subaccounts at all times in Permitted Investments selected by the Issuer (by

 

52

standing instructions
or otherwise); provided, however, that funds on deposit in a Series 2010-1
Subaccounts may be invested together with funds held in other subaccounts of the Collection
Account. Amounts on deposit and available for investment in the Series 2010-1 General Collection
Subaccount and the Series 2010-1 Principal Collection Subaccount shall be invested by the Indenture
Trustee at the written direction of the Issuer, so long as no Amortization Event has occurred, in
Permitted Investments that mature, or that are payable or redeemable upon demand of the holder
thereof, on or prior to the next Business Day. On each Settlement Date, all interest and other
investment earnings (net of losses and investment expenses) on funds deposited in the Series 2010-1
Principal Collection Subaccount and the Series 2010-1 General Collection Subaccount shall be
deposited in the Series 2010-1 Settlement Collection Subaccount. The Issuer shall not direct the
Indenture Trustee to dispose of (or permit the disposal of) any Permitted Investments prior to the
maturity thereof to the extent such disposal would result in a loss of principal of such Permitted
Investment. In the absence of written direction as provided hereunder, all funds on deposit in the
Collection Account shall remain uninvested.

          (c) After the occurrence of an Amortization Event, so long as the Class A Investor Notes are
Outstanding, the Administrative Agent shall instruct the institution maintaining the Collection
Account in writing to invest funds on deposit in the Series 2010-1 Subaccounts from time to time in
Permitted Investments selected by the Administrative Agent (by standing instructions or otherwise).
If no Class A Investor Notes are Outstanding after the occurrence of an Amortization Event, the
Issuer shall instruct the institution maintaining the Collection Account in writing to invest
amounts on deposit in the Series 2010-1 Subaccounts at all times in Permitted Investments selected
by the Issuer (by standing instructions or otherwise). Amounts on deposit and available for
investment in the Series 2010-1 Subaccounts shall be invested by the Indenture Trustee at the
written direction of the Administrative Agent or the Issuer, as the case may be, in Permitted
Investments that mature, or that are payable or redeemable upon demand of the holder thereof on or
prior to the Business Day immediately preceding the next Payment Date. On each Settlement Date,
all interest and other investment earnings (net of losses and investment expenses) on funds
deposited in the Series 2010-1 General Collection Subaccount and the Series 2010-1 Principal
Collection Subaccount shall be deposited in the Series 2010-1 Settlement Collection Subaccount.
Neither the Administrative Agent nor the Issuer shall direct the Indenture Trustee to dispose of
(or permit the disposal of) any
Permitted Investments prior to the maturity thereof to the extent such disposal would result
in a loss of principal of such Permitted Investment. In the absence of written direction as
provided hereunder, all funds on deposit shall remain uninvested.

          Section 5A.2 Allocations with Respect to the Series 2010-1 Investor Notes.

          (a) Prior to 1:00 P.M., New York City time, on each Deposit Date, the Administrator shall
direct the Indenture Trustee in writing to allocate to the Series 2010-1 Investor Noteholders and
deposit in the Series 2010-1 General Collection Subaccount an amount equal to the product of the
Series 2010-1 Invested Percentage on such Deposit Date and the Collections deposited into the
Collection Account on such Deposit Date.

          (b) The Administrator shall direct the Indenture Trustee in writing to allocate to the Series
2010-1 Investor Noteholders and deposit in the Series 2010-1 General Collection

 

53

Subaccount the
following amounts on each Business Day (the “Series 2010-1 Daily Principal Allocation”):

     (i) the proceeds from the initial sale of the Series 2010-1 Investor Notes or
any Increase; and

     (ii) any amounts allocated to another Series of Investor Notes that the Issuer
or the Administrator, on behalf of the Issuer, has elected to apply to reduce the
Series 2010-1 Invested Amount.

          (c) On each Determination Date, the Administrator shall direct the Indenture Trustee in
writing to allocate to the Series 2010-1 Investor Noteholders and deposit in the Series 2010-1
Settlement Collection Subaccount on the immediately succeeding Transfer Date amounts withdrawn from
the Gain on Sale Account, in an amount equal to the product of the average daily Series 2010-1
Invested Percentage during the immediately preceding Monthly Period and the amount withdrawn from
the Gain on Sale Account pursuant to Section 5.2(e) of the Base Indenture on such Transfer
Date.

          (d) On each Determination Date, the Administrator shall direct the Indenture Trustee in
writing to allocate to the Series 2010-1 Investor Noteholders and deposit in the Series 2010-1
Settlement Collection Subaccount on the immediately succeeding Settlement Date the following
amounts:

     (i) any Unit Repurchase Payments made by the Servicer, in an amount equal to
the product of the average daily Series 2010-1 Invested Percentage during the
immediately preceding Monthly Period and the amount of such Unit Repurchase
Payments;

     (ii) the Monthly Servicer Advance made by the Servicer, in an amount equal to
the product of the average daily Series 2010-1 Invested Percentage during the
immediately preceding Monthly Period and the amount of such Monthly Servicer
Advance; and

     (iii) payments made under the Lease Rate Caps maintained by the Issuer
pursuant to Section 5A.12, in an amount equal to the product of the average
daily Series 2010-1 Invested Percentage during the immediately preceding Monthly
Period and the amount of such payments.

          (e) On each Business Day, the Administrator will direct the Indenture Trustee in writing to
allocate, prior to 1:00 P.M., New York City time, the Series 2010-1 Daily Principal Allocation
deposited in the Series 2010-1 General Collection Subaccount in the following priority:

     (i) if such Business Day is a Settlement Date, allocate to the Series 2010-1
Settlement Collection Subaccount, an amount equal to the lesser of (A) the
proceeds from any Increase on such Settlement Date and (B) the Principal
Overpayment Amount for such Settlement Date; and

 

54

     (ii) allocate any remaining portion of any Increase and any amounts allocated
to another Series of Investor Notes that the Issuer or the Administrator, on behalf
of the Issuer, has elected to apply to reduce the Series 2010-1 Invested Amount to
the Series 2010-1 Principal Collection Subaccount.

          (f) If, on any Business Day during the Series 2010-1 Revolving Period, other than during any
Paydown Period, the sum of (i) the Series 2010-1 Daily Principal Allocation and (ii) the amount on
deposit in the Series 2010-1 Principal Collection Subaccount on such Business Day is less than the
Daily Principal Utilization Amount for such Business Day, the Administrator will direct the
Indenture Trustee in writing, prior to 1:00 P.M., New York City time, to withdraw an amount equal
to such deficit from the Series 2010-1 General Collection Subaccount and deposit it into the Series
2010-1 Principal Collection Subaccount.

          (g) The Administrator may direct the Indenture Trustee in writing by 1:00 P.M., New York City
time, on any Business Day during the Series 2010-1 Revolving Period to withdraw amounts on deposit
in the Series 2010-1 Principal Collection Subaccount for any of the following purposes:

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

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

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

provided, however that during any Paydown Period the Administrator may withdraw
amounts on deposit in the Series 2010-1 Principal Collection Subaccount pursuant to this
Section 5A.2(g)
only to reduce the Purchaser Group Invested Amounts of the Non-Extending Purchaser Group or
Non-Extending Purchaser Groups pursuant to Sections 2.5(a) and 5A.7(c).

          Section 5A.3. Determination of Interest

          (a) On each Determination Date, the Administrator shall determine the Class A Note Rate for
the Series 2010-1 Interest Rate Period ending on the next succeeding Payment Date, based on the
information provided by the Non-Conduit Purchasers and the Funding Agents pursuant to this
Section 5A.3(a), and the amount of interest payable on such next succeeding Payment Date on
the Class A Investor Notes (“Class A Monthly Interest”). Class A Monthly Interest for each
Series 2010-1 Interest Period will equal the product of (i) the Class A Note Rate for such Series
2010-1 Interest Period, (ii) the average daily Class A Invested Amount during such Series 2010-1
Interest Period and (iii) the actual number of days elapsed in such Series 2010-1 Interest Period
divided by 360. On each Determination Date, each Non-Conduit Purchaser and the Funding Agent with
respect to each CP Conduit Purchaser Group shall provide written notice to the Administrator of the
Class A Monthly Funding Costs with respect to its

 

55

Related Purchaser Group with respect to the
portion of the current Series 2010-1 Interest Period ending on such Determination Date (or, in the
case of the Series 2010-1 Interest Period immediately preceding the Series 2010-1 Note Termination
Date, an estimate of the Class A Monthly Funding Costs with respect to such Purchaser Group for
such Series 2010-1 Interest Period). For the purposes of determining Class A Monthly Interest for
each Series 2010-1 Interest Period (other than the Series 2010-1 Interest Period immediately
preceding the Series 2010-1 Note Termination Date), the Administrator may make a reasonable
estimation of the portion of the Class A Monthly Funding Costs with respect to each Purchaser Group
to accrue during the portion of such Series 2010-1 Interest Period succeeding such Determination
Date, based on its reasonable expectations of the Purchaser Group Invested Amount with respect to
such Purchaser Group during such period, the Discount on the Commercial Paper, if any, issued by,
or for the benefit of, such Purchaser Group to fund such Purchaser Group Invested Amount during
such period or the LIBO Rates, the Adjusted LIBO Rates or the Alternate Base Rate applicable to
such Purchaser Group Invested Amount during such period. If the actual amount of the portion of the
Class A Monthly Funding Costs with respect to any Purchaser Group accruing during the portion of
any Series 2010-1 Interest Period succeeding the Determination Date in such Series 2010-1 Interest
Period is less than or greater than the amount thereof estimated by the Administrator on such
Determination Date, the Administrator will reduce or increase the Class A Monthly Funding Costs
with respect to such Purchaser Group with respect to the next succeeding Series 2010-1 Interest
Period accordingly. The Administrator shall determine Class A Monthly Interest for the Series
2010-1 Interest Period immediately preceding the Series 2010-1 Note Termination Date on the
Determination Date immediately preceding the last day of such Series 2010-1 Interest Period based
on the information provided by the Non-Conduit Purchasers and the Funding Agents. If a Non-Conduit
Purchaser or a Funding Agent with respect to any CP Conduit Purchaser Group determines that the
actual Class A Monthly Funding Costs with respect to its Related Purchaser Group for the Series
2010-1 Interest Period immediately preceding the Series 2010-1 Note Termination Date will be more
or less than the estimate thereof provided to the Administrator and informs the Administrator of
such variance prior to the Payment Date for such Series 2010-1 Interest Period, the Administrator
will amend the Monthly Settlement
Statement relating thereto to reflect that variance and provide the Indenture Trustee, the
Administrative Agent, each Non-Conduit Purchaser and each Funding Agent with an amended Monthly
Settlement Statement on or prior to such Payment Date.

          (b) The Bank of New York Mellon is hereby appointed Calculation Agent for the purpose of
determining the Class B Note Rate for each Series 2010-1 Interest Period. On each LIBOR
Determination Date, the Calculation Agent shall determine the Class B Note Rate for the next
succeeding Series 2010-1 Interest Period and deliver notice of such Class B Note Rate to the
Indenture Trustee. On each LIBOR Determination Date, the Calculation Agent shall deliver to the
Administrator notice of the Class B Note Rate for the next succeeding Series 2010-1 Interest
Period. The rights, protections, immunities and indemnities afforded the Indenture Trustee
pursuant to the Base Indenture shall be afforded to the Calculation Agent hereunder.

          (c) On each Determination Date, the Administrator shall determine:

     (i) the sum of the Class A Senior Monthly Funding Costs and the sum of the Class A
Contingent Monthly Funding Costs for each Purchaser Group for the Series 2010-1 Interest
Period ending on the next succeeding Payment Date;

 

56

     (ii) the excess, if any (the “Class A Senior Monthly Funding Costs Shortfall”),
of (A) the sum of (x) the Class A Senior Monthly Funding Costs for each Purchaser Group for
such Series 2010-1 Interest Period and (y) the amount of any unpaid Class A Senior Monthly
Funding Costs Shortfall, as of the preceding Payment Date (together with any Class A
Additional Interest on such Class A Senior Monthly Funding Costs Shortfall), over (B) the
amount which will be available to be distributed to the Class A Investor Noteholders on such
Payment Date in respect thereof pursuant to Section 5A.4(c)(iv);

     (iii) the excess, if any (the “Class A Contingent Monthly Funding Costs
Shortfall”), of (A) the sum of (x) the Class A Contingent Monthly Funding Costs for each
Purchaser Group for such Series 2010-1 Interest Period and (y) the amount of any unpaid
Class A Contingent Monthly Funding Costs Shortfall, as of the preceding Payment Date
(together with any Class A Additional Interest on such Class A Contingent Monthly Funding
Costs Shortfall), over (B) the amount which will be available to be distributed to the Class
A Investor Noteholders on such Payment Date in respect thereof pursuant to Section
5A.4(c)(xiii);

     (iv) Class B Contingent Monthly Interest and Class B Senior Monthly Interest for such
Series 2010-1 Interest Period;

     (v) the excess, if any (the “Class B Senior Monthly Interest Shortfall”), of
(A) the sum of (x) Class B Senior Monthly Interest for such Series 2010-1 Interest Period
and (y) the Class B Senior Monthly Interest Shortfall, if any, as of the preceding Payment
Date (together with Class B Additional Interest on such Class B Senior Monthly Interest
Shortfall) (such sum, the “Class B Senior Monthly Interest Payment”), over (B) the
amount which will be available to be distributed to the Class B Investor Noteholders on such
Payment Date in respect thereof pursuant to Section 5A.4(c)(vi); and

     (vi) the excess, if any (the “Class B Contingent Monthly Interest Shortfall”),
of (A) the sum of (x) the Class B Contingent Monthly Interest for such Series 2010-1
Interest Period and (y) the amount of any unpaid Class B Contingent Monthly Interest
Shortfall as of the preceding Payment Date (together with Class B Additional Interest on
such Class B Contingent Monthly Interest Shortfall) ) (such sum, the “Class B Contingent
Monthly Interest Payment”), over (B) the amount which will be available to be
distributed to the Class B Investor Noteholders on such Payment Date in respect thereof
pursuant to Section 5A.4(c)(xiv).

If the Class A Senior Monthly Funding Costs Shortfall or the Class A Contingent Monthly Funding
Costs Shortfall with respect to any Payment Date is greater than zero, an additional amount
(“Class A Additional Interest”) equal to the product of (A) the number of days until such
Class A Monthly Funding Costs Shortfall shall be repaid divided by 365 (or 366, as the case may
be), (B) the Alternate Base Rate plus 4.05% and (C) such Class A Monthly Funding Costs Shortfall
(or the portion thereof which has not been paid to the Class A Investor Noteholders) shall be
payable as provided herein on each Payment Date following such Payment Date, to but excluding the
Payment Date on which such Class A Monthly Funding Costs Shortfall is paid to the Class A Investor
Noteholders. If the Class B Senior Monthly Interest Shortfall or the Class B Contingent Monthly
Interest Shortfall with respect to any Payment Date is greater than zero, an

 

57

additional amount
(“Class B Additional Interest”) equal to the product of (A) the number of days until such
Class B Interest Shortfall shall be repaid divided by 365 (or 366, as the case may be), (B) the
Alternate Base Rate plus 4.05% and (C) such Class B Monthly Interest Shortfall (or the portion
thereof which has not been paid to the Class B Investor Noteholders) shall be payable as provided
herein on each Payment Date following such Payment Date, to but excluding the Payment Date on which
such Class B Monthly Interest Shortfall is paid to the Class B Investor Noteholders.

          Section 5A.4. Monthly Application of Collections.

          (a) On each Settlement Date, the Administrator shall direct the Indenture Trustee in writing
to withdraw from the Series 2010-1 General Collection Subaccount and allocate to the Series 2010-1
Settlement Collection Subaccount an amount equal to Total Cash Available for such Settlement Date
(less an amount equal to the investment income from the Series 2010-1 General Collection Subaccount
and the Series 2010-1 Principal Collection Subaccount transferred to the Series 2010-1 Settlement
Collection Subaccount pursuant to Section 5A.1(b)).

          (b) If the Administrator determines that the aggregate amount distributable from the Series
2010-1 Settlement Collection Subaccount pursuant to paragraphs (i) through (x) of
Section 5A.4(c) on any Payment Date exceeds the sum of the Total Cash Available for such
Payment Date and the amount to be deposited in the Series 2010-1 Settlement Collection Subaccount
pursuant to Section 5A.2(e)(i) on such Payment Date (the “Deficiency”), the
Administrator shall notify the Indenture Trustee thereof in writing at or before 10:00 A.M., New
York City time, on the Business Day immediately preceding such Payment Date, and the Indenture
Trustee shall, in accordance with such notice, by 11:00 A.M., New York City time, on such Payment
Date, withdraw from the Series 2010-1 Reserve Account and deposit in the Series
2010-1 Settlement Collection Subaccount an amount equal to the least of (x) such Deficiency,
(y) the product of the average daily Series 2010-1 Invested Percentage during the immediately
preceding Monthly Period and Aggregate Net Lease Losses for such Monthly Period and (z) the Series
2010-1 Reserve Account Amount and, to the extent that such amount is less than the Deficiency,
withdraw from the Series 2010-1 Yield Supplement Account and deposit in the Series 2010-1
Settlement Collection Subaccount an amount equal to the lesser of the amount of such insufficiency
and the Series 2010-1 Yield Supplement Account Amount. If the Deficiency with respect to any
Payment Date exceeds the amounts to be withdrawn from the Series 2010-1 Reserve Account and the
Series 2010-1 Yield Supplement Account pursuant to the immediately preceding sentence, the
Administrator shall instruct the Indenture Trustee in writing at or before 10:00 A.M., New York
City time, on the Business Day immediately preceding such Payment Date, and the Indenture Trustee
shall, by 11:00 A.M., New York City time, on such Payment Date, withdraw from the Series 2010-1
Reserve Account and deposit in the Series 2010-1 Settlement Collection Subaccount an amount equal
to the lesser of (x) the remaining portion of the Deficiency and (y) the Series 2010-1 Reserve
Account Amount (after giving effect to the withdrawal described in the immediately preceding
sentence). Notwithstanding the foregoing, if the Administrator determines that the aggregate
amount distributable from the Series 2010-1 Settlement Collection Subaccount pursuant to
paragraphs (i) through (xvii) of Section 5A.4(c) on the Final Maturity Date
or on the Payment Date on which the Series 2010-1 Invested Amount will be reduced to zero exceeds
the sum of the Total Cash Available for such Payment Date and

 

58

the amount to be deposited in the
Series 2010-1 Settlement Collection Subaccount pursuant to Section 5A.2(e)(i) on such
Payment Date, the Administrator shall notify the Indenture Trustee thereof in writing at or before
10:00 A.M., New York City time, on the Business Day immediately preceding such Payment Date, and
the Indenture Trustee shall, in accordance with such notice, by 11:00 A.M., New York City time, on
such Payment Date, withdraw from the Series 2010-1 Reserve Account and deposit in the Series 2010-1
Settlement Collection Subaccount an amount equal to the lesser of (x) such deficiency and (y) the
Series 2010-1 Reserve Account Amount and, to the extent that such amount is less than such
deficiency, withdraw from the Series 2010-1 Yield Supplement Account and deposit in the Series
2010-1 Settlement Collection Subaccount an amount equal to the lesser of the amount of such
insufficiency and the Series 2010-1 Yield Supplement Account Amount.

          (c) On each Payment Date, based solely on the information contained in the Monthly Settlement
Statement with respect to Series 2010-1 Investor Notes, the Indenture Trustee shall apply the
following amounts allocated to, or deposited in, the Series 2010-1 Settlement Collection Subaccount
on such Payment Date in the following order of priority:

     (i) to the Gain On Sale Account, an amount equal to the Series 2010-1 Monthly
Residual Value Gain, if any, for such Payment Date;

     (ii) to the Servicer, an amount equal to the Series 2010-1 Monthly Servicer
Advance Reimbursement Amount for such Payment Date;

     (iii) if VMS is not the Servicer, to the Servicer, an amount equal to the
Series 2010-1 Basic Servicing Fee for the preceding Monthly Period plus, on the
first Payment Date following the transfer of the servicing from VMS to a
successor Servicer pursuant to Section 9.1 of the Series 1999-1 SUBI
Servicing Supplement, to the extent not reimbursed by VMS, the reasonable costs and
expenses of the successor Servicer incurred in connection with the transfer of the
servicing, in an amount up to $250,000;

     (iv) to the Series 2010-1 Distribution Account, an amount equal to the sum of
the Class A Senior Monthly Funding Costs for each Purchaser Group for the Series
2010-1 Interest Period ending on such Payment Date plus the amount of any unpaid
Class A Senior Monthly Funding Costs Shortfall, as of the preceding Payment Date,
together with any Class A Additional Interest on such Class A Senior Monthly
Funding Costs Shortfall (such amount, the “Class A Senior Monthly Interest
Payment”);

     (v) to the Series 2010-1 Distribution Account, an amount equal to the
Commitment Fee payable on such Payment Date plus the amount of any unpaid
Commitment Fee payable on any prior Payment Date (such amount, the “Commitment
Fee Payment”);

     (vi) to the Series 2010-1 Distribution Account, an amount equal to the Class B
Senior Monthly Interest Payment for such Payment Date;

 

59

     (vii) if VMS is the Servicer, to the Servicer, an amount equal to the Series
2010-1 Basic Servicing Fee for the preceding Monthly Period;

     (viii) to the Back-up Servicer, an amount equal to the lesser of (x) $10,761
and (y) the amount then payable to the Back-up Servicer pursuant to the Back-up
Servicing Agreement;

     (ix) to the Administrator, an amount equal to the Series 2010-1 Administrator
Fee for the preceding Monthly Period;

     (x) (A) on any Payment Date during the Series 2010-1 Revolving Period, to the
Series 2010-1 Principal Collection Subaccount, an amount equal to the greater of
(I) the Series 2010-1 Allocated Asset Amount Deficiency, if any, on such Payment
Date and (II) if such Payment Date is during a Paydown Period, the lesser of the
Series 2010-1 Principal Payment Amount for such Payment Date and the aggregate
Purchaser Group Invested Amounts with respect to the Non-Extending Purchaser Groups
on such Payment Date and (B) on any Payment Date during the period from and
including the first day of the Series 2010-1 Amortization Period to and including
the Series 2010-1 Note Termination Date, to the Series 2010-1 Principal Collection
Subaccount, an amount equal to the lesser of the Series 2010-1 Principal Payment
Amount for such Payment Date and the Series 2010-1 Invested Amount on such Payment
Date;

     (xi) to the Series 2010-1 Reserve Account, to the extent that a Series 2010-1
Liquid Credit Enhancement Deficiency exists or, on any Payment Date immediately
succeeding a Monthly Period falling in the Series 2010-1 Amortization Period, to
the extent that a Series 2010-1 Allocated Asset Amount Deficiency exists, an amount
equal to the greater of such deficiencies;

     (xii) to the Series 2010-1 Yield Supplement Account, to the extent that a
Series 2010-1 Yield Supplement Deficiency exists (or, will exist after giving
effect to any reduction in the Class X 1999-1B Invested Amount on such Payment
Date), an amount equal to such deficiency;

     (xiii) to the Series 2010-1 Distribution Account, an amount equal to the sum
of the Class A Contingent Monthly Funding Costs for each Purchaser Group for the
Series 2010-1 Interest Period ending on such Payment Date plus the amount of any
unpaid Class A Contingent Monthly Funding Costs Shortfall, as of the preceding
Payment Date, together with any Class A Additional Interest on such Class A
Contingent Monthly Funding Costs Shortfall (such amount, the “Class A
Contingent Monthly Interest Payment”);

     (xiv) to the Series 2010-1 Distribution Account, an amount equal to the Class
B Contingent Monthly Interest Payment for such Payment Date;

     (xv) to the Series 2010-1 Distribution Account, an amount equal to the Lease
Rate Cap Costs for such Payment Date;

 

60

     (xvi) if VMS is not the Servicer, to the Servicer, an amount equal to any
Series 2010-1 Supplemental Servicing Fee for the preceding Monthly Period and any
unpaid Series 2010-1 Supplemental Servicing Fee for any prior Monthly Period;

     (xvii) to the Series 2010-1 Distribution Account, an amount equal to the
Increased Costs for such Payment Date; and

     (xviii) to the Issuer, an amount equal to the balance remaining in the Series
2010-1 Settlement Collection Subaccount.

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

          (a) On each Payment Date, based solely on the information contained in the Monthly Settlement
Statement with respect to the Series 2010-1 Investor Notes, the Indenture Trustee shall, in
accordance with Section 6.1 of the Base Indenture, pay to the Administrative Agent, for the
account of the Class A Investor Noteholders, from the Series 2010-1 Distribution Account the Class
A Senior Monthly Interest Payment to the extent of the amount deposited in the Series 2010-1
Distribution Account for the payment of such amount pursuant to Section 5A.4(c)(iv) and the
Class A Contingent Monthly Interest Payment to the extent of the amount deposited in the Series
2010-1 Distribution Account for the payment of such amount pursuant to
Section 5A.4(c)(xiii). Upon the receipt of funds from the Indenture Trustee on each
Payment Date on account of the Class A Senior Monthly Interest Payment and the Class A Contingent
Monthly Interest Payment, the Administrative Agent shall pay to each Non-Conduit Purchaser and each
Funding Agent with respect to a CP Conduit Purchaser Group an amount equal to the Class A Monthly
Funding Costs with respect to its Related Purchaser Group with respect to the immediately
succeeding Series 2010-1 Interest Period plus the amount of any unpaid Class A Monthly Funding
Costs Shortfall payable to such Purchaser Group as of the preceding Payment Date, together with any
Class A Additional Interest thereon. If the amount deposited in the Series 2010-1 Distribution
Account on any Payment Date pursuant to Section 5A.4(c)(iv) is less than the Class A Senior
Monthly Interest Payment on such Payment Date, the Administrative Agent shall pay the amount
available to pay such Class A Senior Monthly Interest Payment to the Non-Conduit Purchasers and the
Funding Agents, on behalf of the CP Conduit Purchaser Groups, on a pro rata basis, based on the
Class A Senior Monthly Funding Costs with respect to each Related Purchaser Group with respect to
the immediately preceding Series 2010-1 Interest Period. If the amount deposited in the Series
2010-1 Distribution Account on any Payment Date pursuant to Section 5A.4(c)(xiii) is less
than the Class A Contingent Monthly Interest Payment on such Payment Date, the Administrative Agent
shall pay the amount available to pay such Class A Contingent Monthly Interest Payment to the
Non-Conduit Purchasers and the Funding Agents, on behalf of the CP Conduit Purchaser Groups, on a
pro rata basis, based on the Class A Contingent Monthly Funding Costs with respect to each Related
Purchaser Group with respect to the immediately preceding Series 2010-1 Interest Period.

          (b) On each Payment Date, based solely on the information contained in the Monthly Settlement
Statement with respect to Series 2010-1 Investor Notes, the Indenture Trustee shall pay to the
Administrative Agent, for the account of the Class A Investor Noteholders, from the Series 2010-1
Distribution Account the Commitment Fee Payment for

 

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such Payment Date to the extent of the amount
deposited in the Series 2010-1 Distribution Account for the payment of such Commitment Fee Payment
pursuant to Section 5A.4(c)(v). Upon the receipt of funds from the Indenture Trustee on
each Payment Date on account of the Commitment Fee Payment, the Administrative Agent shall pay to
each Non-Conduit Purchaser and each Funding Agent with respect to a CP Conduit Purchaser Group an
amount equal to the Commitment Fee payable to its Related Purchaser Group with respect to the
immediately succeeding Series 2010-1 Interest Period plus the amount of any unpaid Commitment Fee
for any prior Series 2010-1 Interest Period payable to such Purchaser Group. If the amount
deposited in the Series 2010-1 Distribution Account on any Payment Date pursuant to Section
5A.4(c)(v) is less than the Commitment Fee Payment on such Payment Date, the Administrative
Agent shall pay the amount available to the Non-Conduit Purchasers and the Funding Agents, on
behalf of the CP Conduit Purchaser Groups, on a pro rata basis, based on the Commitment Fee payable
to each Purchaser Group with respect to the immediately succeeding Series 2010-1 Interest Period.

          (c) On each Payment Date, based solely on the information contained in the Monthly Settlement
Statement with respect to Series 2010-1 Investor Notes, the Indenture Trustee shall pay to (i) the
Administrative Agent, for the account of the Class A Investor Noteholders, from the Series 2010-1
Distribution Account any Article 7 Costs due and payable
on such Payment Date to any Non-Conduit Purchaser, any CP Conduit Purchaser or any APA Bank to
the extent of the amounts deposited in the Series 2010-1 Distribution Account for the payment of
such Article 7 Costs pursuant to Section 5A.4(c)(xvii) and (ii) each Class B Investor
Noteholder from the Series 2010-1 Distribution Account any Article 7 Costs due and payable on such
Payment Date to such Class B Investor Noteholder to the extent of the amounts deposited in the
Series 2010-1 Distribution Account for the payment of such Article 7 Costs pursuant to Section
5A.4(c)(xvii). If the amounts deposited in the Series 2010-1 Distribution Account on any
Payment Date pursuant to Section 5A.4(c)(xvii are less than the Article 7 Costs due and
payable on such Payment Date , the Indenture Trustee shall pay the amounts available in the
following order of priority:

     (i) to the Administrative Agent, for the account of the Class A Investor Noteholders,
an amount equal to the aggregate Article 7 Costs due and payable on such Payment Date to the
Class A Investor Noteholders; and

     (ii) to the Class B Investor Noteholders any Article 7 Costs due and payable on such
Payment Date to such Class B Investor Noteholders, on a pro rata basis, based on the amounts
owing to such Class B Investor Noteholders.

Upon the receipt of funds from the Indenture Trustee on any Payment Date on account of Article 7
Costs, the Administrative Agent shall pay such amounts to the Non-Conduit Purchaser or the Funding
Agent with respect to the CP Conduit Purchaser or the APA Bank owed such amounts. If the amounts
received by the Administrative Agent in respect of Article 7 Costs on any Payment Date are less
than the Article 7 Costs due and payable to the Non-Conduit Purchasers, the CP Conduit Purchasers
and the APA Banks on such Payment Date, the Administrative Agent shall pay the amounts available to
the Non-Conduit Purchasers and the Funding Agents with respect to the CP Conduit Purchasers and APA
Banks owed such amounts, on a pro rata basis,

 

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based on the amounts owing to such Non-Conduit
Purchasers, CP Conduit Purchasers and APA Banks.

          (d) On each Payment Date, based solely on the information contained in the Monthly Settlement
Statement with respect to Series 2010-1 Investor Notes, the Indenture Trustee shall pay to the
Persons owed any other unpaid Program Costs due and payable on such Payment Date or any amounts due
and payable pursuant to Section 2.8 on such Payment Date from the Series 2010-1
Distribution Account to the extent of the amount deposited in the Series 2010-1 Distribution
Account for the payment of such Program Costs pursuant to Section 5A.4(c)(xvii). If the
excess of the amounts deposited in the Series 2010-1 Distribution Account on any Payment Date
pursuant to Section 5A.4(c)(xvii) over the amount of Article 7 Costs due and payable on
such Payment Date is less than the sum of the unpaid Program Costs due and payable on such Payment
Date and the amounts due and payable pursuant to Section 2.8 on such Payment Date, the
Indenture Trustee shall pay the amount available to Persons owed such amounts on a pro rata basis,
based on the amounts owing to such Persons.

          (e) On each Payment Date, based solely on the information contained in the Monthly Settlement
Statement with respect to the Series 2010-1 Investor Notes, the Indenture Trustee shall, in
accordance with Section 6.1 of the Base Indenture, pay to the Class B Investor
Noteholders, from the Series 2010-1 Distribution Account, on a pro rata basis, (i) the Class B
Senior Monthly Interest Payment, to the extent of the amount deposited in the Series 2010-1
Distribution Account for the payment of the Class B Senior Monthly Interest Payment pursuant to
Section 5A.4(c)(vi) on such Payment Date and (ii) the Class B Contingent Monthly Interest
Payment, to the extent of the amount deposited in the Series 2010-1 Distribution Account for the
payment of the Class B Contingent Monthly Interest Payment pursuant to Section 5A.4(c)(xiv)
on such Payment Date.

          (f) On each Payment Date, based solely on the information contained in the Monthly Settlement
Statement with respect to Series 2010-1 Investor Notes, the Indenture Trustee shall pay to the
Administrative Agent, for the account of the Series 2010-1 Investor Noteholders, from the Series
2010-1 Distribution Account any Lease Rate Cap Costs to the extent of the amount deposited in the
Series 2010-1 Distribution Account for the payment of such Lease Rate Cap Costs pursuant to
Sections 5A.4(c)(xv). Upon the receipt of funds from the Indenture Trustee on each Payment
Date on account of Lease Rate Cap Costs, the Administrative Agent shall pay to each Non-Conduit
Purchaser and each Funding Agent with respect to a CP Conduit Purchaser an amount equal to the
Lease Rate Cap Costs payable to such Non-Conduit Purchaser or CP Conduit Purchaser. If the amount
deposited in the Series 2010-1 Distribution Account on any Payment Date pursuant to Section
5A.4(c)(xv) is less than the Lease Rate Cap Costs on such Payment Date, the Administrative
Agent shall pay the amount available to the Non-Conduit Purchasers and the Funding Agents, on
behalf of the CP Conduit Purchasers, on a pro rata basis, based on the Lease Rate Cap Costs payable
to each Non-Conduit Purchaser or CP Conduit Purchaser.

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

          The amount (the “Monthly Principal Payment”) distributable from the Series 2010-1
Principal Collection Subaccount on each Payment Date during the Series 2010-1

 

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Amortization Period
shall be equal to the amount on deposit in such account on such Payment Date; provided,
however, that the Monthly Principal Payment on any Payment Date shall not exceed the Series
2010-1 Invested Amount on such Payment Date. On each Payment Date during the Series 2010-1
Amortization Period, based solely on the information contained in the Monthly Settlement Statement
with respect to the Series 2010-1 Investor Notes, the Indenture Trustee shall withdraw from the
Series 2010-1 Principal Collection Subaccount and deposit in the Series 2010-1 Distribution Account
an amount equal to the Monthly Principal Payment on such Payment Date.

          Section 5A.7 Payment of Principal.

          (a) The principal amount of the Series 2010-1 Investor Notes shall be due and payable on the
Final Maturity Date.

          (b) On each Payment Date during the Series 2010-1 Amortization Period, based solely on the
information contained in the Monthly Settlement Statement with respect to Series 2010-1 Investor
Notes, the Indenture Trustee shall, in accordance with Section 6.1 of the
Base Indenture, distribute from the Series 2010-1 Distribution Account the amount deposited
therein pursuant to Section 5A.6 on such Payment Date in the following order of priority:

     (i) to the Administrative Agent, for the account of the Class A Investor Noteholders,
until the Class A Invested Amount is reduced to zero; and

     (ii) pro rata to each Class B Investor Noteholder until the Class B Invested Amount is
reduced to zero.

Upon the receipt of funds from the Indenture Trustee on any Payment Date on account of the Monthly
Principal Payment, the Administrative Agent shall pay to each Non-Conduit Purchaser and each
Funding Agent the Pro Rata Share of its Related Purchaser Group of the Monthly Principal Payment.

          (c) On the date of any Decrease, the Indenture Trustee shall pay to the Administrative Agent,
for the account of the Class A Investor Noteholders, from the Series 2010-1 Distribution Account
the amount of the Decrease indicated in the request received by the Indenture Trustee pursuant to
Section 2.5(a). Upon the receipt of funds from the Indenture Trustee (i) on the date of any
Decrease, other than during any Paydown Period, the Administrative Agent shall pay to each
Non-Conduit Purchaser and each Funding Agent the Pro Rata Share of its Related Purchaser Group of
the amount of such Decrease (including, any amount thereof in excess of the amount required on such
date to reduce the aggregate Purchaser Group Invested Amounts of all Non-Extending Purchaser Groups
to zero pursuant to clause (ii) of this Section 5A.7(c)) and (ii) on the date of any
Decrease during a Paydown Period, the Administrative Agent shall pay to each Non-Conduit Purchaser
which is a Non-Extending Purchaser Group and each Funding Agent with respect to a Non-Extending
Purchaser Group, a pro rata amount of such Decrease, based on the Purchaser Group Invested Amounts
with respect to such Non-Extending Purchaser Groups. Each CP Conduit Purchaser Group’s share of
the amount of any Decrease on any Business Day shall be allocated by such CP Conduit Purchaser
Group first to reduce the Available CP Funding Amount with respect to such CP Conduit

 

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Purchaser
Group and the Available APA Bank Funding Amount with respect to such CP Conduit Purchaser Group on
such Business Day and then to reduce the portion of the Purchaser Group Invested Amount with
respect to such CP Conduit Purchaser Group allocated to CP Tranches and Eurodollar Tranches in such
order as such CP Conduit Purchaser Group may select in order to minimize costs payable pursuant to
Section 7.4.

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

          When any payment or deposit hereunder or under any other Transaction Document is required to
be made by the Indenture Trustee at or prior to a specified time, the Administrator shall deliver
any applicable written instructions with respect thereto reasonably in advance of such specified
time. If the Administrator fails to give notice or instructions to make any payment from or
deposit into the Collection Account or any subaccount thereof required to be given by the
Administrator, at the time specified herein or in any other Transaction Document (after giving
effect to applicable grace periods), the Indenture Trustee shall make such payment
or deposit into or from the Collection Account or such subaccount without such notice or
instruction from the Administrator; provided that the Administrator, upon request of the
Indenture Trustee, promptly provides the Indenture Trustee with all information necessary to allow
the Indenture Trustee to make such a payment or deposit. In the event that the Indenture Trustee
shall take or refrain from taking action pursuant to this Section 5A.8., the
Administrator shall, by 5:00 P.M., New York City time, on any day the Indenture Trustee makes a
payment or deposit based on information or direction from the Administrator, provide (i) written
confirmation of any such direction and (ii) written confirmation of all information used by the
Administrator in giving any such direction.

          Section 5A.9 Series 2010-1 Reserve Account.

          (a) The Indenture Trustee shall establish and maintain in the name of the Indenture Trustee
for the benefit of the Series 2010-1 Investor Noteholders an account (the “Series 2010-1
Reserve Account”), bearing a designation clearly indicating that the funds deposited therein
are held for the benefit of the Series 2010-1 Investor Noteholders. The Series 2010-1 Reserve
Account shall be an Eligible Deposit Account; provided that, if at any time such account is
not an Eligible Deposit Account, then the Indenture Trustee shall, within 30 days of obtaining
knowledge of such ineligibility, establish a new Series 2010-1 Reserve Account that is an Eligible
Deposit Account. If the Indenture Trustee establishes a new Series 2010-1 Reserve Account, it
shall transfer all cash and investments from the non-qualifying Series 2010-1 Reserve Account into
the new Series 2010-1 Reserve Account. Initially, the Series 2010-1 Reserve Account will be
established with JPMorgan Chase.

          (b) So long as no Amortization Event has occurred, the Issuer may instruct the institution
maintaining the Series 2010-1 Reserve Account in writing to invest funds on deposit in the Series
2010-1 Reserve Account from time to time in Permitted Investments selected by the Issuer (by
standing instructions or otherwise); provided, however, that any such investment
shall mature not later than the Business Day prior to the Payment Date following the date on which
such funds were received. After the occurrence of an Amortization Event, so long as the Class A
Investor Notes are Outstanding, the Administrative Agent shall instruct the institution

 

65

maintaining
the Series 2010-1 Reserve Account in writing to invest funds on deposit in the Series 2010-1
Reserve Account from time to time in Permitted Investments selected by the Administrative Agent (by
standing instructions or otherwise). If no Class A Investor Notes are Outstanding after the
occurrence of an Amortization Event, the Issuer shall instruct the institution maintaining the
Series 2010-1 Reserve Account in writing to invest funds on deposit in the Series 2010-1 Reserve
Account from time to time in Permitted Investments selected by the Issuer (by standing instructions
or otherwise). Any such investment shall mature not later than the Business Day prior to the
Payment Date following the date on which such funds were received. In absence of written direction
as provided hereunder, funds on deposit in the Series 2010-1 Reserve Account shall remain
uninvested.

          (c) All interest and earnings (net of losses and investment expenses) paid on funds on deposit
in the Series 2010-1 Reserve Account shall be deemed to be on deposit and available for
distribution.

          (d) If there is a Series 2010-1 Reserve Account Surplus on any Settlement Date, the
Administrator may notify the Indenture Trustee thereof in writing and instruct the Indenture
Trustee to withdraw from the Series 2010-1 Reserve Account and pay to the Issuer, and the Indenture
Trustee shall withdraw from the Series 2010-1 Reserve Account and pay to the Issuer, so long as no
Series 2010-1 Allocated Asset Amount Deficiency exists or would result therefrom, an amount up to
the lesser of (i) such Series 2010-1 Reserve Account Surplus on such Business Day and (ii) the
Series 2010-1 Reserve Account Amount on such Business Day.

          (e) Amounts will be withdrawn from the Series 2010-1 Reserve Account in accordance with
Section 5A.4(b).

          (f) In order to secure and provide for the repayment and payment of the Issuer Obligations
with respect to the Series 2010-1 Investor Notes, the Issuer hereby grants a security interest in
and assigns, pledges, grants, transfers and sets over to the Indenture Trustee, for the benefit of
the Series 2010-1 Investor Noteholders, all of the Issuer’s right, title and interest in and to the
following (whether now or hereafter existing or acquired): (i) the Series 2010-1 Reserve Account,
including any security entitlement thereto; (ii) all funds on deposit therein from time to time;
(iii) all certificates and instruments, if any, representing or evidencing any or all of the Series
2010-1 Reserve Account or the funds on deposit therein from time to time; (iv) all investments made
at any time and from time to time with monies in the Series 2010-1 Reserve Account, whether
constituting securities, instruments, general intangibles, investment property, financial assets or
other property; (v) all interest, dividends, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of or in exchange for the Series 2010-1
Reserve Account, the funds on deposit therein from time to time or the investments made with such
funds; and (vi) all proceeds of any and all of the foregoing, including, without limitation, cash.
The Indenture Trustee and the Series 2010-1 Investor Noteholders shall have no interest in any
amounts withdrawn from the Series 2010-1 Reserve Account and paid to the Issuer.

          (g) On the Series 2010-1 Note Termination Date, the Indenture Trustee, acting in accordance
with the written instructions of the Administrator, shall withdraw from the Series 2010-1 Reserve
Account and pay to the Issuer all amounts on deposit therein.

 

66

          Section 5A.10 Series 2010-1 Yield Supplement Account.

          (a) The Indenture Trustee shall establish and maintain in the name of the Indenture Trustee
for the benefit of the Series 2010-1 Investor Noteholders an account (the “Series 2010-1 Yield
Supplement Account”), bearing a designation clearly indicating that the funds deposited therein
are held for the benefit of the Series 2010-1 Investor Noteholders. The Series 2010-1 Yield
Supplement Account shall be an Eligible Deposit Account; provided that, if such account is
not an Eligible Deposit Account, then the Indenture Trustee shall, within 30 days of obtaining
knowledge of such ineligibility, establish a new Series 2010-1 Yield Supplement Account that is an
Eligible Deposit Account. If the Indenture Trustee establishes a new Series 2010-1 Yield
Supplement Account, it shall transfer all cash and investments from the non-qualifying Series
2010-1 Yield Supplement Account into the new Series 2010-1 Yield Supplement Account. Initially, the
Series 2010-1 Yield Supplement Account will be established with JPMorgan Chase.

          So long as no Amortization Event has occurred, the Issuer may instruct the institution
maintaining the Series 2010-1 Yield Supplement Account in writing to invest funds on deposit in the
Series 2010-1 Yield Supplement Account from time to time in Permitted Investments selected by the
Issuer (by standing instructions or otherwise); provided, however, that any such
investment shall mature not later than the Business Day prior to the Payment Date following the
date on which such funds were received. After the occurrence of an Amortization Event, so long as
Class A Notes are Outstanding, the Administrative Agent shall instruct the institution maintaining
the Series 2010-1 Yield Supplement Account in writing to invest funds on deposit in the Series
2010-1 Yield Supplement Account from time to time in Permitted Investments selected by the
Administrative Agent (by standing instructions or otherwise). If no Class A Investor Notes are
Outstanding after the occurrence of an Amortization Event, the Issuer shall instruct the
institution maintaining the Series 2010-1 Yield Supplement Account in writing to invest amounts
from time to time on deposit in the Series 2010-1 Yield Supplement Account at all times in
Permitted Investments selected by the Issuer (by standing instructions or otherwise). Any such
investment shall mature not later than the Business Day prior to the Payment Date following the
date on which such funds were received. In absence of written direction as provided hereunder,
funds on deposit in the Series 2010-1 Yield Supplement Account shall remain uninvested.

          (b) All interest and earnings (net of losses and investment expenses) paid on funds on deposit
in the Series 2010-1 Yield Supplement Account shall be deemed to be on deposit and available for
distribution.

          (c) If there is a Series 2010-1 Yield Supplement Account Surplus on any Settlement Date, the
Administrator may notify the Indenture Trustee thereof in writing and request the Indenture Trustee
to withdraw from the Series 2010-1 Yield Supplement Account and pay to the Issuer, and the
Indenture Trustee shall withdraw from the Series 2010-1 Yield Supplement Account and pay to the
Issuer an amount up to the lesser of (i) such Series 2010-1 Yield Supplement Account Surplus on
such Business Day and (ii) the Series 2010-1 Yield Supplement Account Amount on such Business Day.

 

67

          (d) Amounts will be withdrawn from the Series 2010-1 Yield Supplement Account in accordance
with Section 5A.4(b).

          (e) In order to secure and provide for the repayment and payment of the Issuer Obligations
with respect to the Series 2010-1 Investor Notes, the Issuer hereby grants a security interest in
and assigns, pledges, grants, transfers and sets over to the Indenture Trustee, for the benefit of
the Series 2010-1 Investor Noteholders, all of the Issuer’s right, title and interest in and to the
following (whether now or hereafter existing or acquired): (i) the Series 2010-1 Yield Supplement
Account, including any security entitlement thereto; (ii) all funds on deposit therein from time to
time; (iii) all certificates and instruments, if any, representing or evidencing any or all of the
Series 2010-1 Yield Supplement Account or the funds on deposit therein from time to time; (iv) all
investments made at any time and from time to time with monies in the Series 2010-1 Yield
Supplement Account, whether constituting securities, instruments, general intangibles, investment
property, financial assets or other property; (v) all interest, dividends, cash, instruments and
other property from time to time received, receivable or otherwise distributed in respect of or in
exchange for the Series 2010-1 Yield Supplement Account, the funds on deposit therein from time to
time or the investments made with such funds; and (vi) all proceeds of any and all of the
foregoing, including, without limitation, cash. The Indenture Trustee and the Series 2010-1
Investor Noteholders shall have no interest in any amounts withdrawn from the Series 2010-1 Yield
Supplement Account and paid to the Issuer.

          (f) On the Series 2010-1 Note Termination Date, the Indenture Trustee, acting in accordance
with the written instructions of the Administrator, shall withdraw from the Series 2010-1 Yield
Supplement Account and pay to the Issuer all amounts on deposit therein.

          Section 5A.11 Series 2010-1 Distribution Account

          (a) The Indenture Trustee shall establish and maintain in the name of the Indenture Trustee
for the benefit of the Series 2010-1 Investor Noteholders an account (the “Series 2010-1
Distribution Account”), bearing a designation clearly indicating that the funds deposited
therein are held for the benefit of the Series 2010-1 Investor Noteholders. The Series 2010-1
Distribution Account shall be maintained as an Eligible Deposit Account; provided that, if
such account is not an Eligible Deposit Account, then the Indenture Trustee shall, within 30 days
of obtaining knowledge of such ineligibility, establish a new Series 2010-1 Distribution Account
that is an Eligible Deposit Account. If the Indenture Trustee establishes a new Series 2010-1
Distribution Account, it shall transfer all cash and investments from the non-qualifying Series
2010-1 Distribution Account into the new Series 2010-1 Distribution Account. Initially, the Series
2010-1 Distribution Account will be established with JPMorgan Chase.

          (b) In order to secure and provide for the repayment and payment of the Issuer Obligations
with respect to the Series 2010-1 Investor Notes, the Issuer hereby grants a security interest in
and assigns, pledges, grants, transfers and sets over to the Indenture Trustee, for the benefit of
the Series 2010-1 Investor Noteholders, all of the Issuer’s right, title and interest in and to the
following (whether now or hereafter existing or acquired): (i) the Series 2010-1 Distribution
Account, including any security entitlement thereto; (ii) all funds on deposit therein
from time to time; (iii) all certificates and instruments, if any, representing or evidencing
any or all of the Series 2010-1 Distribution Account or the funds on deposit therein from time to
time;

 

68

(iv) all interest, dividends, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of or in exchange for the Series 2010-1
Distribution Account, the funds on deposit therein from time to time; and (v) all proceeds of any
and all of the foregoing, including, without limitation, cash.

          Section 5A.12 Lease Rate Caps.

          (a) On the Effective Date, the Issuer shall have obtained and shall thereafter maintain one or
more interest rate caps, substantially in the form of Exhibit D, each from a Series 2010-1 Eligible
Counterparty, having, in the aggregate, a notional amount on the Effective Date at least equal to
the aggregate Lease Balance of all Fixed Rate Leases allocated to the Lease SUBI Portfolio as of
the last day of the Monthly Period immediately preceding the Effective Date, plus, in the case of
all such Fixed Rate Leases that are Closed-End Leases, the aggregate Stated Residual Values of the
related Leased Vehicles, and on each Payment Date thereafter at least equal to the aggregate
scheduled Lease Balance of all such Fixed Rate Leases as of the last day of the Monthly Period
immediately preceding such Payment Date, plus, in the case of all such Fixed Rate Leases that are
Closed-End Leases, the aggregate Stated Residual Values of the related Leased Vehicles, and an
effective strike rate based on the eurodollar rate set forth therein in effect on the dates set
forth therein at the most equal to the weighted average fixed rate of interest on such Fixed Rate
Leases minus the sum of 0.245% and the then current Program Fee Rate.

          (b) On or prior to the date that any Fixed Rate Lease is allocated to the Lease SUBI Portfolio
on or after the Effective Date, the Issuer shall have obtained and shall thereafter maintain an
interest rate cap substantially in the form of Exhibit D, from a Series 2010-1 Eligible
Counterparty having a notional amount equal to the initial Lease Balance of such Fixed Rate Lease,
plus, in the case of a Closed-End Lease, the Stated Residual Value of the related Leased Vehicle
and on each Payment Date thereafter at least equal to the scheduled Lease Balance of such Fixed
Rate Lease as of the last day of the Monthly Period immediately preceding such Payment Date, plus,
in the case of a Closed-End Lease, the Stated Residual Value of the related Leased Vehicle and an
effective strike rate based on the eurodollar rate set forth therein in effect on the dates set
forth therein at the most equal to the fixed rate of interest on such Fixed Rate Lease minus the
sum of 0.245% and the then current Program Fee Rate.

          (c) On or prior to each Settlement Date, the Issuer shall have obtained and shall thereafter
maintain an interest rate cap substantially in the form of Exhibit D, from a Series 2010-1 Eligible
Counterparty having a notional amount equal to the aggregate Lease Balance of each Floating Rate
Lease allocated to the Lease SUBI that shall have been converted to a Fixed Rate Lease during the
immediately preceding Monthly Period, plus, in the case of a Closed-End Lease, the Stated Residual
Value of the related Leased Vehicle and on each Payment Date thereafter at least equal to the
scheduled Lease Balance of such newly converted Fixed Rate Lease as of the last day of the Monthly
Period immediately preceding such Payment Date, plus, in the case of a Closed-End Lease, the Stated
Residual Value of the related Leased Vehicle and an effective strike rate based on the eurodollar
rate set forth therein in effect on the dates set forth
therein at the most equal to the fixed rate of interest on such newly converted Fixed Rate
Lease minus the sum of 0.245% and the then current Program Fee Rate.

 

69

          (d) If, at any time, any provider of an interest rate cap required to be obtained and
maintained by the Issuer pursuant to this Section 5A.12 is not a Series 2010-1 Eligible
Counterparty, the Issuer shall cause such provider to take the actions required of it under the
terms of the interest rate cap to which it is a party within the time frames set forth therein
following such occurrence. If any such provider of an interest rate cap fails to take the actions
required of it under the terms of its interest rate cap, the Issuer shall, at such provider’s
expense, obtain a replacement interest rate cap on the same terms from a Series 2010-1 Eligible
Counterparty and, simultaneously with such replacement, the Issuer shall terminate the interest
rate cap being replaced. The Issuer will not permit any interest rate cap required to be obtained
and maintained by the Issuer pursuant to this Section 5A.12 to be terminated or transferred
in whole or in part unless a replacement interest rate cap therefor has been provided as described
in the immediately preceding sentence and, after giving effect thereto, the Issuer has the interest
rate caps required to be obtained and maintained by the Issuer pursuant to this Section
5A.12.

          (e) If the Issuer fails to obtain or maintain any Lease Rate Cap that it is required to obtain
and maintain in accordance with Sections 5A.12(a), (b) or (c) or fails to
replace the Lease Rate Cap of any downgraded provider of an interest rate cap required to be
maintained hereunder in accordance with Section 5A.12(d) or otherwise satisfy the
provisions of Section 5A.12(d), the Administrative Agent, at the expense of the Issuer,
acting at the direction of the Series 2010-1 Required Investor Noteholders, may obtain any such
Lease Rate Cap on commercially reasonable terms. In the alternative, the Administrative Agent, at
the expense of the Issuer, acting at the direction of the Series 2010-1 Required Investor
Noteholders, may obtain on commercially reasonable terms any Hedging Instrument that the
Administrative Agent reasonably determines will cover the interest rate exposure that would have
been covered by the Lease Rate Cap that the Issuer shall have failed to obtain or maintain
hereunder. Each Series 2010-1 Investor Noteholder hereby agrees to reimburse the Administrative
Agent, to the extent not reimbursed by the Issuer, for any costs or expenses incurred by the
Administrative Agent in connection with obtaining any Hedging Instruments in accordance with the
terms of this Section 5A.12(e). Any amounts owing by the Issuer to the Series 2010-1
Investor Noteholders pursuant to this Section 5A.12(e) on any Payment Date shall be payable out of
funds available pursuant to Section 5A.4(c)(xv) on such Payment Date.

          Section 5A.13 Indenture Trustee As Securities Intermediary. (a) The
Indenture Trustee or other Person holding the Series 2010-1 Reserve Account, the Series 2010-1
Yield Supplement Account or the Series 2010-1 Distribution Account (each a “Series 2010-1
Designated Account”) shall be the “Securities Intermediary”. If the Securities Intermediary in
respect of any Series 2010-1 Designated Account is not the Indenture Trustee, the Issuer shall
obtain the express agreement of such Person to the obligations of the Securities Intermediary set
forth in this Section 5A.13.

          (b) The Securities Intermediary agrees that:

          (i) The Series 2010-1 Designated Accounts are accounts to which “financial
assets” within the meaning of Section 8-102(a)(9) (“Financial Assets”) of
the UCC in effect in the State of New York (the “New York UCC”) will be
credited;

 

70

          (ii) All securities or other property underlying any Financial Assets credited
to any Series 2010-1 Designated Account shall be registered in the name of the
Securities Intermediary, indorsed to the Securities Intermediary or in blank or
credited to another securities account maintained in the name of the Securities
Intermediary and in no case will any Financial Asset credited to any Series 2010-1
Designated Account be registered in the name of the Issuer, payable to the order of
the Issuer or specially endorsed to the Issuer;

          (iii) All property delivered to the Securities Intermediary pursuant to this
Indenture Supplement will be promptly credited to the appropriate Series 2010-1
Designated Account;

          (iv) Each item of property (whether investment property, security, instrument
or cash) credited to a Series 2010-1 Designated Account shall be treated as a
Financial Asset;

          (v) If at any time the Securities Intermediary shall receive any order from the
Indenture Trustee directing transfer or redemption of any Financial Asset relating
to the Series 2010-1 Designated Accounts, the Securities Intermediary shall comply
with such entitlement order without further consent by the Issuer or the
Administrator;

          (vi) The Series 2010-1 Designated Accounts shall be governed by the laws of the
State of New York, regardless of any provision of any other agreement. For purposes
of the UCC, New York shall be deemed to the Securities Intermediary’s jurisdiction
and the Series 2010-1 Designated Accounts (as well as the “securities entitlements”
(as defined in Section 8-102(a)(17) of the New York UCC) related thereto) shall be
governed by the laws of the State of New York;

          (vii) The Securities Intermediary has not entered into, and until termination
of this Indenture Supplement, will not enter into, any agreement with any other
Person relating to the Series 2010-1 Designated Accounts and/or any Financial Assets
credited thereto pursuant to which it has agreed to comply with entitlement orders
(as defined in Section 8-102(a)(8) of the New York UCC) of such other Person and the
Securities Intermediary has not entered into, and until the termination of this
Indenture Supplement will not enter into, any agreement with the Issuer purporting
to limit or condition the obligation of the Securities Intermediary to comply with
entitlement orders as set forth in Section 5A.13(b)(v) of this Indenture
Supplement; and

          (viii) Except for the claims and interest of the Indenture Trustee and the
Issuer in the Series 2010-1 Designated Accounts, the Securities Intermediary knows
of no claim to, or interest, in the Series 2010-1 Designated Accounts or in any
Financial Asset credited thereto. If the Securities Intermediary has actual
knowledge of the assertion by any other person of any lien, encumbrance, or adverse
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warrant of attachment, execution
or similar process) against any Series 2010-1 Designated Account or in any Financial
Asset carried therein, the Securities Intermediary will promptly notify the
Indenture Trustee, the Administrator, the Administrative Agent and the Issuer
thereof.

          (c) The Indenture Trustee shall possess all right, title and interest in all funds on deposit
from time to time in the Series 2010-1 Designated Accounts and in all proceeds thereof, and shall
be the only person authorized to originate entitlement orders in respect of the Series 2010-1
Designated Accounts.

ARTICLE 4

AMORTIZATION EVENTS

          If any one of the following events shall occur with respect to the Series 2010-1 Investor
Notes:

          (a) the Series 2010-1 Reserve Account shall have become subject to an injunction, estoppel or
other stay or a Lien (other than a Permitted Lien);

          (b) the Series 2010-1 Yield Supplement Account shall have become subject to an injunction,
estoppel or other stay or a Lien (other than a Permitted Lien);

          (c) a Series 2010-1 Liquid Credit Enhancement Deficiency shall occur and continue for at least
two Business Days;

          (d) a Series 2010-1 Allocated Asset Amount Deficiency shall occur and continue for at least
two Business Days;

          (e) a Series 2010-1 Yield Supplement Deficiency shall occur and continue for at least two
Business Days;

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

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

          (h) the Three Month Average Delinquency Ratio with respect to any Settlement Date exceeds
7.00%;

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

          (j) any Servicer Termination Event shall occur;

          (k) any Termination Event shall occur;

 

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          (l) an Event of Default with respect to the Series 2010-1 Investor Notes shall occur;

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

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

          (o) the failure on the part of the Issuer to pay any Commitment Fee or any Series 2010-1
Monthly Interest due and payable on any Payment Date which failure continues unremedied for two
Business Days;

          (p) failure on the part of the Issuer (i) to make any payment or deposit required by the terms
of the Indenture (or within the applicable grace period which shall not exceed two Business Days
after the date such payment or deposit is required to be made) or (ii) duly to observe or perform
in any material respect any covenants or agreements of the Issuer set forth in the Base Indenture
or this Indenture Supplement (other than any such failure that constitutes a Lease Rate Cap Event),
which failure continues unremedied for a period of thirty (30) days after there shall have been
given to the Issuer by the Indenture Trustee or the Issuer and the Indenture Trustee by any Series
2010-1 Investor Noteholder, written notice specifying such default and requiring it to be remedied;

          (q) any representation or warranty made by the Issuer in the Base Indenture or this Indenture
Supplement, or any information required to be delivered by the Issuer to the Indenture Trustee
shall prove to have been incorrect in any material respect when made or when delivered, which
continues to be incorrect in any material respect for a period of thirty (30) days after there
shall have been given to the Issuer by the Indenture Trustee or the Issuer and the Indenture
Trustee by any Series 2010-1 Investor Noteholder, written notice thereof;

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

          (s) there shall have been filed against PHH, PHH Sub 1, PHH Sub 2, VMS, the Origination Trust,
Holdings or the Issuer (i) a notice of federal tax Lien from the Internal Revenue Service, (ii) a
notice of Lien from the PBGC under Section 430(k) of the Internal Revenue Code or Section 303(k) of
ERISA for a failure to make a required installment or other payment to a plan to which either of
such sections applies or (iii) a notice of any other Lien the existence of which could reasonably
be expected to have a material adverse effect on the business, operations or financial condition of
such Person, and, in each case, 40 days shall have elapsed without such notice having been
effectively withdrawn or such Lien having been released or discharged;

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

 

73

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

          (v) the failure on the part of the Administrator duly to observe or perform in any material
respect any covenants or agreements of the Administrator set forth in the Base Indenture or this
Indenture Supplement, which failure continues unremedied for a period of thirty (30) days after
there shall have been given to the Administrator by the Indenture Trustee or the Administrator and
the Indenture Trustee by any Series 2010-1 Investor Noteholder, written notice specifying such
default and requiring it to be remedied;

          (w) a Change in Control shall occur;

          (x) an “event of default” (or any other defined term or event having a similar purpose) under,
and as defined in, the PHH Credit Agreement shall have occurred and be continuing;

          (y) Consolidated Net Worth on the last day of any fiscal quarter of PHH shall be less than
$1,000,000,000; or

          (z) the ratio of Indebtedness of PHH and the Subsidiaries to Tangible Net Worth shall exceed
6.5 to 1.0 at any time;

then, in the case of any event described in clause (p) through (z) above, an Amortization Event
will be deemed to have occurred with respect to the Series 2010-1 Investor Notes only, if after the
applicable grace period, either the Indenture Trustee or the Series 2010-1 Required Investor
Noteholders, declare that an Amortization Event has occurred with respect to the Series 2010-1
Investor Notes. In the case of any event described in clauses (a) through (o) above, an
Amortization Event with respect to the Series 2010-1 Investor Notes will be deemed to have occurred
without notice or other action on the part of the Indenture Trustee or the Series 2010-1 Investor
Noteholders.

ARTICLE 5

OPTIONAL PREPAYMENT

          The Issuer shall have the option to prepay all outstanding Series 2010-1 Investor Notes by
paying an amount equal to the Series 2010-1 Prepayment Amount. The Issuer shall give the Indenture
Trustee and the Administrative Agent at least ten Business Days’ prior written notice of the date
on which the Issuer intends to exercise such option to prepay (the “Prepayment Date”).
Upon receipt of any notice of a Prepayment Date from the Issuer, the Administrative Agent shall
promptly notify each Non-Conduit Purchaser and the Funding Agent with respect to each CP Conduit
Purchaser Group thereof. Any such notice of a Prepayment Date shall be irrevocable. Not later
than 11:00 A.M., New York City time, on such Prepayment Date, the Issuer shall deposit in the
Series 2010-1 Distribution Account an amount equal to the Series 2010-1 Prepayment Amount in
immediately available funds. The portion of the funds deposited into the Series 2010-1
Distribution Account payable to the Class A Investor Noteholders will be paid by the Indenture
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74

Investor Noteholders, on such
Prepayment Date. Upon the receipt of funds from the Indenture Trustee on any Prepayment Date, the
Administrative Agent shall pay to each Non-Conduit Purchaser and each Funding Agent the portion of
the Series 2010-1 Prepayment Amount owing to its Related Purchaser Group. The portion of the funds
deposited into the Series 2010-1 Distribution Account payable to the Class B Investor Noteholders
will be paid by the Indenture Trustee to the Class B Investor Noteholders on such Prepayment Date.

ARTICLE 6

SERVICING AND ADMINISTRATOR FEES

          SECTION 6.1. Servicing Fee. A periodic servicing fee (the “Series 2010-1 Basic Servicing
Fee”) shall be payable to the Servicer on each Payment Date for the preceding Monthly Period in
an amount equal to the product of (a) 0.215% (the “Series Servicing Fee Percentage”) times
(b) the daily average of the Series 2010-1 Allocated Adjusted Aggregate Unit Balance for such
Monthly Period times (c) the number of days in such Monthly Period divided by 365 (or 366, as
applicable) days; provided, however that if VMS is not the Servicer, the servicing fee payable to
the Servicer on each Payment Date hereunder may be increased such that the sum of the Series 2010-1
Basic Servicing Fee and the additional servicing fee payable to the Servicer hereunder (the
“Series 2010-1 Supplemental Servicing Fee”) for each Monthly Period equals 110% of the
costs to the successor Servicer of servicing the portion of the Lease SUBI Portfolio allocated to
Series 2010-1 during such Monthly Period. For this purpose, the portion of the Lease SUBI
Portfolio allocated to Series 2010-1 for each Monthly Period shall equal the average Series
2010-1 Invested Percentage during such Monthly Period. The Series 2010-1 Basic Servicing Fee and
any Series 2010-1 Supplemental Servicing Fee shall be payable to the Servicer on each Payment Date
pursuant to Section 5A.4(c).

          SECTION 6.2. Administrator Fee. A periodic fee (the “Series 2010-1 Administrator Fee”)
shall be payable to the Administrator on each Payment Date for the preceding Monthly Period in an
amount equal to the product of (a) 0.01% times (b) the daily average of the Series 2010-1 Allocated
Adjusted Aggregate Unit Balance for such Monthly Period times (c) the number of days in such
Monthly Period divided by 365 (or 366, as applicable) days. The Series 2010-1 Administrator Fee
shall be payable to the Administrator on each Payment Date pursuant to Section 5A.4(c)(ix).

ARTICLE 7

CHANGE IN CIRCUMSTANCES

          SECTION 7.1. Illegality. Notwithstanding any other provision herein, if any Change in Law shall
make it unlawful for any CP Conduit Purchaser Group to make or maintain any portion of the
Purchaser Group Invested Amount with respect to such CP Conduit Purchaser Group allocated to a
Eurodollar Tranche and such CP Conduit Purchaser Group shall notify in writing the Administrative
Agent, the Funding Agent with respect to such CP Conduit Purchaser Group, the Indenture Trustee and
the Issuer, then the portion of such Purchaser Group Invested

 

75

Amount allocated to Eurodollar
Tranches shall thereafter be calculated by reference to the Alternate Base Rate. If any such
change in the method of calculating interest occurs on a day which is not the last day of the
Eurodollar Period with respect to any Eurodollar Tranche, the Issuer shall pay to such CP Conduit
Purchaser Group the amounts, if any, as may be required pursuant to Section 7.4.

          SECTION 7.2.
Increased Costs.

          (a) If any Regulatory Change (except with respect to Taxes which shall be governed by
Section 7.3) (i) subjects any Affected Party to any charge or withholding on or with
respect to any Support Agreement or this Indenture Supplement or the Base Indenture or an Affected
Party’s obligations under a Support Agreement or this Indenture Supplement or the Base Indenture,
or on or with respect to the Class A Investor Notes, or changes the basis of taxation of payments
to any Affected Party of any amounts payable under any Support Agreement or this Indenture
Supplement or the Base Indenture (except for changes in the rate of tax on the overall net income
of an Affected Party or Excluded Taxes) or (ii) imposes, modifies or deems applicable any reserve,
assessment, fee, tax, insurance charge, special deposit or similar requirement against assets of,
deposits with or for the account of, or liabilities of an Affected Party, or credit extended by an
Affected Party pursuant to a Support Agreement or this Indenture
Supplement or the Base Indenture or (iii) imposes any other condition the result of which is
to increase the cost to an Affected Party of performing its obligations under a Support Agreement
or this Indenture Supplement or the Base Indenture, or to reduce the rate of return on an Affected
Party’s capital as a consequence of its obligations under a Support Agreement or this Indenture
Supplement or the Base Indenture, or to reduce the amount of any sum received or receivable by an
Affected Party under a Support Agreement or this Indenture Supplement or the Base Indenture, or to
require any payment calculated by reference to the amount of interests or loans held or interest
received by it, then, upon demand by such Affected Party pursuant to Section 7.6, the
Issuer shall pay to such Affected Party, such amounts charged to such Affected Party or such
amounts to otherwise compensate such Affected Party for such increased cost or such reduction. The
term “Regulatory Change” shall mean (i) the adoption after the date hereof of any
applicable law, rule or regulation (including any applicable law, rule or regulation regarding
capital adequacy) or any change therein after the date hereof, (ii) any change after the date
hereof in the interpretation or administration thereof by any governmental authority, central bank
or comparable agency charged with the interpretation or administration thereof, or compliance with
any request or directive (whether or not having the force of law) of any such authority, central
bank or comparable agency, or (iii) the compliance, whether commenced prior to or after the date
hereof, by any Affected Party with the final rule titled Risk-Based Capital Guidelines; Capital
Adequacy Guidelines; Capital Maintenance: Regulatory Capital; Impact of Modifications to Generally
Accepted Accounting Principles; Consolidation of Asset-Backed Commercial Paper Programs; and Other
Related Issues, adopted by the United States bank regulatory agencies on December 15, 2009, or any
rules or regulations promulgated in connection therewith by any such agency.

          (b) The Issuer shall pay to the relevant Affected Party, such amounts as such Affected Party
reasonably determines will compensate or reimburse such Affected Party for any (i) fee, expense or
increased cost charged to, incurred or otherwise suffered by such Affected Party, (ii) reduction in
the rate of return on such Affected Party’s capital or reduction in the

 

76

amount of any sum received
or receivable by such Affected Party or (iii) internal capital charge or other imputed cost
determined by such Affected Party to be allocable to the Issuer, the Class A Investor Notes or the
transactions contemplated in this Indenture Supplement and the Base Indenture, in each case
resulting from or in connection with the consolidation, for financial and/or regulatory accounting
purposes, of all or any portion of the assets and liabilities of a CP Conduit Purchaser or, if
applicable, any related issuer of Commercial Paper on behalf of such CP Conduit Purchaser, that are
subject to this Indenture Supplement or any other Transaction Document with all or any portion of
the assets and liabilities of such Affected Party. Amounts under this Section 7.2(b) may
be demanded at any time without regard to the timing of issuance of any financial statement by the
CP Conduit Purchaser or by any Affected Party.

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

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

          SECTION
7.3. Taxes.

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

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

          (c) The Issuer shall indemnify the Administrative Agent, each Non-Conduit Purchaser, each
Funding Agent, each Program Support Provider, each member of each Purchaser Group and each Class B
Note Purchaser within the later of 10 days after written demand therefor

 

77

and the Payment Date next
following such demand for the full amount of any Indemnified Taxes or Other Taxes paid by the
Administrative Agent, such Non-Conduit Purchaser, such Funding Agent, such Program Support
Provider, such member of such Purchaser Group or such Class B Note Purchaser on or with respect to
any payment by or on account of any obligation of the Issuer hereunder or under any other
Transaction Document (including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section 7.3) and any penalties, interest and
reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified
Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental
Authority; provided that no Person shall be indemnified pursuant to this Section
7.3(c) or required to pay additional amounts under the proviso of Section 7.3(a) to the
extent that the reason for such indemnification results from the failure by such Person to comply
with the provisions of Section 7.3(e) or (g). A certificate as to the amount of
such payment or liability delivered to the Issuer by the Administrative Agent, any Non-Conduit
Purchaser, any Funding Agent, any Program Support Provider, any member of any Purchaser Group or
any Class B Note Purchaser shall be conclusive absent manifest error. Any payments
made by the Issuer pursuant to this Section 7.3 shall be made solely from funds
available therefor pursuant to Section 5A.4(c), shall be non-recourse other than with
respect to such funds, and shall not constitute a claim against the Issuer to the extent that
insufficient funds exist to make such payment. The agreements in this Section shall survive the
termination of this Indenture Supplement and the Base Indenture and the payment of all amounts
payable hereunder and thereunder.

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

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

          (f) If the Administrative Agent, any Non-Conduit Purchaser, any Funding Agent, any Program
Support Provider, any member of a Purchaser Group or any Class B Note Purchaser receives a refund
solely in respect of Indemnified Taxes or Other Taxes, it shall pay over such refund to the Issuer
to the extent that it has already received indemnity payments or

 

78

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

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

     (i) upon or prior to becoming a party hereto, deliver to the Issuer and, in the case of
any Non-Conduit Purchaser, Funding Agent, Program Support Provider or member of a Purchaser
Group, the Administrative Agent two (2) duly completed copies of IRS Form W-8BEN, W-8ECI or
W-9, or successor applicable forms, as the case may be, establishing a complete exemption
from withholding of United States federal income taxes or backup withholding taxes with
respect to payments under the Series 2010-1 Notes and this Indenture Supplement;

     (ii) deliver to the Issuer and, in the case of any Non-Conduit Purchaser, Funding
Agent, Program Support Provider or member of a Purchaser Group, the Administrative Agent two
(2) further copies of any such form or certification establishing a complete exemption from
withholding of United States federal income taxes or backup withholding taxes with respect
to payments under the Series 2010-1 Notes and this Indenture Supplement on or before the
date that any such form or certification expires or becomes obsolete and after the
occurrence of any event requiring a change in the most recent form previously delivered by
it to the Issuer; and

     (iii) obtain such extensions of time for filing and completing such forms or
certifications as may reasonably be requested by the Issuer and, in the case of any
Non-Conduit Purchaser, Funding Agent, Program Support Provider or member of a Purchaser
Group, the Administrative Agent;

unless, in any such case, any change in treaty, law or regulation has occurred after the Series
2010-1 Closing Date (or, if later, the date the Administrative Agent, such Non-Conduit Purchaser,
such Funding Agent, such Program Support Provider, such member of such Purchaser Group or such
Class B Note Purchaser becomes an indemnified party hereunder) and prior to the date on which any
such delivery would otherwise be required which renders the relevant form

 

79

 inapplicable or which
would prevent the Administrative Agent, such Non-Conduit Purchaser, such Funding Agent, such
Program Support Provider, such member of such Purchaser Group or such Class B Note Purchaser from
duly completing and delivering the relevant form with respect to it, and the Administrative Agent,
such Non-Conduit Purchaser, such Funding Agent, such Program Support Provider, such member of such
Purchaser Group or such Class B Note Purchaser so advises the Issuer and, in the case of any
Non-Conduit Purchaser, Funding Agent, Program Support Provider or member of a Purchaser Group, the
Administrative Agent.

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

          SECTION 7.4.
Break Funding Payments. The Issuer agrees to indemnify each Purchaser Group and to
hold each Purchaser Group harmless from any loss or expense which such Purchaser Group may sustain
or incur as a consequence of (a) a change for any reason in the basis for calculation of interest
on any portion of the Purchaser Group Invested Amount with respect to such Purchaser Group from the
cost of Commercial Paper to the Alternate Base Rate or from the Adjusted LIBO Rate to the Alternate
Base Rate, or (b) the revocation or cancellation of any notice of the Series 2010-1 Initial Funding
Date or any Increase given in accordance with the provisions of this Indenture Supplement or any
decrease in the Increase Amount set forth therein, or (c) default by the Issuer in making a
borrowing of, conversion into or continuation of a CP Tranche or a Eurodollar Tranche after the
Issuer has given irrevocable notice requesting the same in accordance with the provisions of this
Indenture Supplement, or (d) default by the Issuer in making any prepayment in connection with a
Decrease after the Issuer has given irrevocable notice thereof in accordance with the provisions of
Section 2.5 or (e) the making of a repayment of any portion of the Purchaser Group Net
Investment with respect to such Purchaser Group (including, without limitation, any Decrease) prior
to the termination of a CP Rate Period for a CP Tranche or a Eurodollar Period for a Eurodollar
Tranche or on a date other than a Payment Date or the date contained in a notice of Decrease
delivered in accordance with the provisions of Section 2.5. Such indemnification shall
include an amount determined by the Non-Conduit Purchaser or the Funding Agent with respect to its
Related Purchaser Group and shall equal (a) in the case of losses or expenses associated with a CP
Tranche or a Eurodollar Tranche, either (x) the excess, if any, of (i) such Related Purchaser
Group’s cost of funding the amount so prepaid or not so borrowed, converted or continued, for the
period from the date of such prepayment or of such failure to borrow, convert or continue to the
last day of the CP Rate Period or the Eurodollar Period (or in the case of a failure to borrow,
convert or continue, the CP Rate Period or the Eurodollar Period that would have commenced on the
date of such prepayment or of such failure), as the case may be, over (ii) the amount of interest
earned by such Related Purchaser Group upon redeployment of an amount of funds equal to the amount
prepaid or not borrowed,

 

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converted or continued for a comparable period or (y) if such Related
Purchaser Group is able to terminate the funding source before its scheduled maturity, any costs
associated with such termination and (b) in the case of losses or expenses incurred by a
Non-Conduit Purchaser or a Pooled Funding CP Conduit Purchaser, the losses and expenses incurred by
such Non-Conduit Purchaser or Pooled Funding CP Conduit Purchaser in connection with the
liquidation or reemployment of deposits or other funds acquired by such Non-Conduit Purchaser or
Pooled Funding CP Conduit Purchaser as a result of the failure to make a borrowing, a reduction in
the amount of any borrowing, a default in making a Decrease or the making of a Decrease in an
amount or on a date not contained in a notice of Decrease; provided that any payments made by
the Issuer pursuant to this subsection shall be made solely from funds available therefor pursuant
to Section 5A.4(c), shall be non-recourse other than with respect to such funds, and shall
not constitute a claim against the Issuer to the extent that such funds are insufficient to make
such payment. This covenant shall survive the termination of this Indenture Supplement and the
Base Indenture and the payment of all amounts payable hereunder and thereunder. A certificate as
to any additional amounts payable pursuant to the foregoing sentence submitted by any Funding Agent
on behalf of a Purchaser Group to the Issuer shall be conclusive absent manifest error.

          SECTION 7.5.
 Alternate Rate of Interest. If prior to the commencement of any Eurodollar Period:

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

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

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

          SECTION 7.6.
Mitigation Obligations. If an Affected Party requests compensation under Section
7.2, or if the Issuer is required to pay any additional amount to any Purchaser Group or any
Class B Note Purchaser or any Governmental Authority for the account of any Purchaser Group or any
Class B Note Purchaser pursuant to Section 7.3, then, upon written notice from the Issuer,
such Affected Party, Purchaser Group or Class B Note Purchaser, as the case may be, shall use
commercially reasonable efforts to designate a different lending office for funding or booking its
obligations hereunder or to assign its rights and obligations hereunder to another of its offices,
branches or affiliates, which pays a price for such assignment which is acceptable to such
Purchaser Group or Class B Note Purchaser and its assignee, in the judgment of such Affected Party,
such Purchaser Group or such Class B Note Purchaser, such designation or assignment (i) would
eliminate or reduce amounts payable pursuant to Section 7.2

 

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or 7.3, as the case may
be, in the future and (ii) would not subject such Affected Party, Purchaser Group or Class B Note
Purchaser to any unreimbursed cost or expense and would not otherwise be disadvantageous to such
Affected Party, Purchaser Group or Class B Note Purchaser. The Issuer hereby agrees to pay all
reasonable costs and expenses incurred by such Affected Party, Purchaser Group or Class B Note
Purchaser in connection with any such designation or assignment.

ARTICLE 8

REPRESENTATIONS AND WARRANTIES, COVENANTS

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

          (a) each and every of their respective representations and warranties contained in the
Transaction Documents is true and correct as of the Series 2010-1 Closing Date, as of the Effective
Date, as of the Series 2010-1 Initial Funding Date and as of the date of each Increase; and

          (b) as of the Series 2010-1 Closing Date, they have not engaged, in connection with the
offering of the Series 2010-1 Investor Notes, in any form of general solicitation or general
advertising within the meaning of Rule 502(c) under the Securities Act.

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

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

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

 

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          (c) they shall not take any action, nor permit Holdings, to take any action, requiring the
satisfaction of the Rating Agency Condition pursuant to any Transaction Document without the prior
written consent of the Series 2010-1 Required Investor Noteholders.

          SECTION 8.3.
Covenants of the Administrator. The Administrator hereby agrees that:

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

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

          (c) it shall provide to the Indenture Trustee, the Administrative Agent, each Non-Conduit
Purchaser, each Funding Agent and each Class B Note Purchaser, as soon as is practicable, but in
any event within 100 days after the end of each fiscal year of PHH, commencing with fiscal year
2010, (i) either (A) consolidated statements of income (or operations) and consolidated statements
of cash flows and changes in stockholders’ equity of PHH and its consolidated subsidiaries for such
year and the related consolidated balance sheets as at the end of such year, or (B) the Form 10-K
filed by PHH with the Securities and Exchange Commission and (ii) if not included in such Form
10-K, an opinion of independent certified public accountants of recognized national standing, which
opinion shall state that said consolidated financial statements fairly present the consolidated
financial position and results of operations of PHH and its consolidated subsidiaries as at the end
of, and for, such fiscal year and that such financial statements were prepared in accordance with
GAAP applied consistently throughout the periods reflected therein and with prior periods;

          (d) it shall provide to the Indenture Trustee, the Administrative Agent, each Non-Conduit
Purchaser, each Funding Agent and each Class B Note Purchaser, as soon as is practicable, but in
any event within 60 days after the end of each of the first three fiscal quarters of each fiscal
year, commencing with the fiscal quarter ending June 30, 2010, either (i) the Form 10-Q filed by
PHH with the Securities and Exchange Commission or (ii) the unaudited consolidated balance sheet of
PHH and its consolidated subsidiaries, as at the end of such fiscal quarter, and the related
unaudited statements of income and cash flows for such quarter and for
the period from the beginning of the then current fiscal year to the end of such fiscal
quarter and the corresponding figures as of the end of the preceding fiscal year, and for the
corresponding

 

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period in the preceding fiscal year, in each case, together with a certificate signed
by the chief financial officer, the chief accounting officer or a vice president responsible for
financial administration of PHH to the effect that such financial statements, while not examined by
independent public accountants, reflect, in his opinion and in the opinion of PHH, all adjustments
necessary to present fairly the financial position of PHH and its consolidated subsidiaries, as the
case may be, as at the end of the fiscal quarter and the results of their operations for the
quarter then ended in conformity with GAAP consistently applied, subject only to year end and audit
adjustments and to the absence of footnote disclosure;

          (e) it shall provide to the Indenture Trustee, the Administrative Agent, each Non-Conduit
Purchaser, each Funding Agent and each Class B Note Purchaser, annually on or prior to March 30 of
each year, a letter of independent certified public accountants of recognized national standing,
addressed to the members of each Purchaser Group and the Class B Note Purchasers, and dated a date
that is reasonably satisfactory to the Series 2010-1 Required Investor Noteholders, in form and
substance reasonably satisfactory to the Series 2010-1 Required Investor Noteholders, concerning
the agreed upon procedures performed in respect of the Origination Trust Assets allocated to the
Lease SUBI Portfolio described on Exhibit F; provided, however, that delivery of any such letter to
the Indenture Trustee, the Administrative Agent, any Non-Conduit Purchaser, any member of a CP
Conduit Purchaser Group or any Class B Note Purchaser may be conditioned on receipt by such
independent certified public accountants of a letter substantially in the form of Exhibit G from
the Indenture Trustee, the Administrative Agent, such Non-Conduit Purchaser, such member of a
Purchaser Group or such Class B Note Purchaser, respectively;

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

          (g) on or prior to the effective date of any amendment, supplement or modification to an
Indenture Supplement relating to an Outstanding Series of Investor Notes entered into after the
Series 2010-1 Closing Date, it shall provide to each Non-Conduit Purchaser and each Funding Agent a
copy of any such amendment, supplement or modification;

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

          (i) it shall provide to each Non-Conduit Purchaser and each Funding Agent copies of all
reports relating to the Series 2010-1 Investor Notes delivered to the Rating Agencies.

          SECTION 8.4.
Obligations Unaffected. The obligations of the Issuer and the Administrator to the
Administrative Agent, the Funding Agents, the Purchaser Groups and the Class B Note Purchasers
under this Indenture Supplement shall not be affected by reason of any

 

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invalidity, illegality or
irregularity of any of the Loans, the SUBI Certificates, the Sold Units or the Fleet Receivables.

ARTICLE 9

CONDITIONS PRECEDENT

          SECTION 9.1.
Conditions Precedent to Effectiveness of Indenture Supplement. This Indenture
Supplement shall become effective on the date (the “Effective Date”) on which the following
conditions precedent have been satisfied:

          (a) Documents. The Administrative Agent, each Non-Conduit Purchaser, each Funding
Agent, on behalf of the related CP Conduit Purchaser and the APA Banks with respect to such CP
Conduit Purchaser, and each Class B Note Purchaser shall have received an original copy, each
executed and delivered in form and substance satisfactory to it, of (i) the Base Indenture,
executed by a duly authorized officer of each of the Issuer and the Indenture Trustee, (ii) the
Loan Agreement, executed by a duly authorized officer of each of the Issuer and Holdings, (iii)
this Indenture Supplement, executed by a duly authorized officer of each of the Issuer, the
Administrator, the Indenture Trustee, the Administrative Agent, the Non-Conduit Purchasers, the
Funding Agents, the CP Conduit Purchasers, the APA Banks and the Class B Note Purchasers, (iv) the
Fee Letter, executed by a duly authorized officer of each of the Issuer, the Administrator, the
Administrative Agent, the Funding Agents and the Non-Conduit Purchasers, (v) the Administration
Agreement, executed by a duly authorized officer of each of the Issuer, Holdings, the Indenture
Trustee and the Administrator, (vi) the Back-up Servicing Agreement executed by a duly authorized
officer of each of the Origination Trust, Wilmington Trust Company, Holdings, the Servicer, the
Indenture Trustee, the Issuer and the Back-up Servicer, (vii) each of the Origination Trust
Documents, executed by duly authorized officers of each of the parties thereto and (viii) any other
Transaction Documents to be executed in connection with Series 2010-1, each duly executed by the
parties thereto.

          (b) Corporate Documents; Proceedings of the Issuer, the Administrator, SPV, Holdings, the
Origination Trust, PHH, the Intermediary and the Servicer. The Administrative Agent, each
Non-Conduit Purchaser, each Funding Agent, on behalf of the related CP Conduit Purchaser and the
APA Banks with respect to such CP Conduit Purchaser, and each Class B Note Purchaser shall have
received from the Issuer, the Administrator, SPV, Holdings, PHH, the Intermediary, the Origination
Trust, VMS and the Servicer true and complete copies of:

     (i) to the extent applicable, the certificate of incorporation, certificate of
trust or certificate of formation, including all amendments thereto, of such
Person, certified as of a recent date by the Secretary of State or other
appropriate
authority of the state of incorporation or organization, as the case may be,
and a certificate of compliance, of status or of good standing, as and to the
extent applicable, of each such Person as of a recent date, from the Secretary of
State or other appropriate authority of such jurisdiction;

 

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     (ii) a certificate of the Secretary or an Assistant Secretary of each of the
Issuer, the Administrator, Holdings, PHH and VMS, dated the Effective Date and
certifying (A) that attached thereto is a true and complete copy of the limited
liability company agreement or by-laws, as applicable, of such Person, as in effect
on the Effective Date and at all times since a date prior to the date of the
resolutions described in clause (B) below, (B) that attached thereto is a true and
complete copy of the resolutions, in form and substance reasonably satisfactory to
the Administrative Agent, each Non-Conduit Purchaser, each Funding Agent and each
Class B Note Purchaser, of the managers or directors of such Person or committees
thereof authorizing the execution, delivery and performance of the Transaction
Documents to which it is a party and the transactions contemplated thereby, and
that such resolutions have not been amended, modified, revoked or rescinded and are
in full force and effect, (C) that the certificate of formation of such Person has
not been amended since the date of the last amendment thereto shown on the
certificate of good standing (or its equivalent) furnished pursuant to clause (i)
above and (D) as to the incumbency and specimen signature of each officer or
authorized signatory executing any Transaction Documents or any other document
delivered in connection herewith or therewith on behalf of such Person; and

     (iii) a certificate of another officer as to the incumbency and specimen
signature of the Secretary or Assistant Secretary executing the certificate
pursuant to clause (ii) above.

          (c) Good Standing Certificates. The Administrative Agent, each Non-Conduit Purchaser,
each Funding Agent, on behalf of the related CP Conduit Purchaser and the APA Banks with respect to
such CP Conduit Purchaser, and each Class B Note Purchaser shall have received copies of
certificates of compliance, of status or of good standing, dated as of a recent date, from the
Secretary of State or other appropriate authority of such jurisdiction, with respect to the Issuer,
the Administrator, SPV, Holdings, and the Origination Trust in each State where the ownership,
lease or operation of property or the conduct of business requires it to qualify as a foreign
corporation, except where the failure to so qualify would not have a material adverse effect on the
business, operations, properties or condition (financial or otherwise) of the Issuer, the
Administrator, SPV, Holdings, or the Origination Trust, as the case may be.

          (d) Consents, Licenses, Approvals, Etc. The Administrative Agent, each Non-Conduit
Purchaser, each Funding Agent, on behalf of the related CP Conduit Purchaser and the APA Banks with
respect to such CP Conduit Purchaser, and each Class B Note Purchaser shall have received
certificates dated the date hereof of an Authorized Officer of the Issuer, VMS, PHH, Holdings and
the Origination Trust either (i) attaching copies of all material consents, licenses and approvals
required in connection with the execution, delivery and
performance by the Issuer, VMS, PHH, Holdings and the Origination Trust of the Transaction
Documents to which it is a party and the validity and enforceability of the Transaction Documents
to which it is a party against the Issuer, VMS, PHH, Holdings and the Origination Trust,
respectively, and such consents, licenses and approvals shall be in full force and effect or (ii)
stating that no such consents, licenses or approvals are so required.

 

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          (e) No Litigation. The Administrative Agent, each Non-Conduit Purchaser, each Funding
Agent, on behalf of the related CP Conduit Purchaser and the APA Banks with respect to such CP
Conduit Purchaser, and each Class B Note Purchaser shall have received confirmation that there is
no pending or, to their knowledge after due inquiry, threatened action or proceeding affecting the
Issuer, VMS, Holdings, the Origination Trust, PHH or any of its Subsidiaries before any
Governmental Authority that could reasonably be expected to have a Material Adverse Effect.

          (f) Lien Searches. The Administrative Agent, each Non-Conduit Purchaser, each Funding
Agent, on behalf of the related CP Conduit Purchaser and the APA Banks with respect to such CP
Conduit Purchaser, and each Class B Note Purchaser shall have received a written search report
listing all effective financing statements that name VMS, PHH, the Origination Trust, Holdings, SPV
or the Issuer as debtor or assignor and that are filed in the jurisdictions in which filings were
made pursuant to paragraph (h) below and in any other jurisdictions that the Administrative Agent,
any Funding Agent or any Class B Investor Noteholder determines are necessary or appropriate,
together with copies of such financing statements (none of which, except for those described in
paragraph (h) below shall cover any portion of the Series 2010-1 Collateral), and tax and judgment
lien searches showing no such liens that are not permitted by the Transaction Documents.

          (g) UCC Certificate. The Administrative Agent, each Non-Conduit Purchaser, each
Funding Agent, on behalf of the related CP Conduit Purchaser and the APA Banks with respect to such
CP Conduit Purchaser, and each Class B Note Purchaser shall have received from each of VMS, the
Origination Trust, Holdings and the Issuer a certificate, substantially in the form of Exhibit H,
completed in a manner satisfactory to the Administrative Agent, each Funding Agent and each Class B
Note Purchaser duly executed by an Authorized Officer of each of VMS, the Origination Trust,
Holdings and the Issuer and dated the Effective Date.

          (h) Filings, Registrations and Recordings. The SUBI Certificates shall have been
registered in the name of the Issuer and delivered to the Indenture Trustee, endorsed in blank, and
any documents (including, without limitation, financing statements) required to be filed in order
(i) to create, in favor of the Indenture Trustee, a perfected security interest in the Collateral
with respect to which a security interest may be perfected by a filing under the UCC or other
comparable statute, (ii) to create in favor of the Issuer a perfected security interest in the Loan
Collateral with respect to which a security interest may be perfected by filing under the UCC or
other comparable statute, (iii) to create in favor of the Origination Trust perfected
ownership/security interest in the assets transferred thereto pursuant to the Old Contribution
Agreement and the Contribution Agreement, (iv) to create in favor of SPV a perfected ownership
interest in the Leases, Vehicles and other assets transferred thereto pursuant to the Asset
Purchase Agreement, (v) to create in favor of Holdings a perfected ownership interest in the
Fleet Receivables under the Receivables Purchase Agreement, (vi) to create in favor of the Issuer a
perfected security interest in the collateral pledged under the Security Agreement and (vii) to
create in favor of the Indenture Trustee a perfected security interest in the Series 2010-1
Collateral with respect to which a security interest may be perfected by a filing under the UCC or
other comparable statute shall, in each case, have been properly prepared and executed for
immediate filing in each office in each jurisdiction listed in the UCC Certificate referred to in

 

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paragraph (g) above, and such filings are the only filings required in order to perfect the
security interest of the Indenture Trustee in the Collateral, the security interest of the Issuer
in the Loan Collateral, the transfer of the Fleet Receivables, Leases, Vehicles and other assets to
the Origination Trust pursuant to the Old Contribution Agreement and the Contribution Agreement,
the transfer of the Leases, Vehicles and other assets to SPV pursuant to the Asset Purchase
Agreement, the transfer of the Fleet Receivables to Holdings pursuant to the Receivables Purchase
Agreement, the security interest of the Issuer in the collateral pledged under the Security
Agreement or the security interest of the Indenture Trustee in the Series 2010-1 Collateral, as the
case may be. The Administrative Agent shall have received evidence reasonably satisfactory to it
of each such filing, registration or recordation and reasonably satisfactory evidence of the
payment of any necessary fee, tax or expense relating thereto.

          (i) Legal Opinions. The Administrative Agent, each Non-Conduit Purchaser, each
Funding Agent, on behalf of the related CP Conduit Purchaser and the APA Banks with respect to such
CP Conduit Purchaser, and each Class B Note Purchaser shall have received, opinions of counsel to
the Issuer, Holdings, SPV, the Origination Trust, the Intermediary, the Back-up Servicer and the
Administrator, dated the Effective Date and addressed to the Administrative Agent, each Non-Conduit
Purchaser, each CP Conduit Purchaser and the Funding Agent, the Program Support Provider and the
APA Banks with respect to such CP Conduit Purchaser, each Class B Note Purchaser and the Indenture
Trustee, as to due organization of the Origination Trust, Holdings, SPV, the Administrator, the
Back-up Servicer, the Intermediary and the Issuer, enforceability of the Transaction Documents,
bankruptcy (“true sale” and “non-substantive consolidation”), perfection and priority of security
interests in the Series 2010-1 Collateral, creation and perfection of the security interests in the
Loan Collateral, including the SUBI Certificates and the Sold Units and the Fleet Receivables, the
characterization of the Series 2010-1 Investor Notes as debt for U.S. federal income tax purposes,
the characterization of the Issuer not as an association or a publicly traded partnership taxable
as a corporation for U.S. federal income tax purposes and other matters, in each case, in form and
substance acceptable to the addressees thereof and their respective counsel.

          (j) Opinion. The Administrative Agent, each Non-Conduit Purchaser, each Funding
Agent, on behalf of the related CP Conduit Purchaser and the APA Banks with respect to such CP
Conduit Purchaser, and each Class B Note Purchaser shall have received an opinion of counsel to the
Indenture Trustee as to the due authorization, execution and delivery by the Indenture Trustee of
this Indenture Supplement and the due authentication and delivery by the Indenture Trustee of the
Series 2010-1 Investor Notes.

          (k) Fees and Expenses. Each Funding Agent with respect to a CP Conduit Purchaser
Group shall have received payment of all fees, out-of-pocket expenses (including any
amounts due to the Rating Agencies in connection with their review of the acquisition by the
CP Conduit Purchaser in such CP Conduit Purchaser Group of the Class A Investor Notes) and other
amounts due and payable to the CP Conduit Purchaser or the APA Banks in such CP Conduit Purchaser
Group on or before the Effective Date. Each Non-Conduit Purchaser shall have received payment of
all fees, out-of-pocket expenses and other amounts due and payable to such Non-Conduit Purchaser on
or before the Effective Date.

 

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          (l) Establishment of Accounts. The Administrative Agent shall have received evidence
reasonably satisfactory to it that the Collection Account (including the Series 2010-1
Subaccounts), the Series 2010-1 Reserve Account, the Series 2010-1 Yield Supplement Account and the
Series 2010-1 Distribution Account shall have been established in accordance with the terms and
provisions of the Indenture.

          (m) Lease Rate Caps. The Indenture Trustee shall have received copies of the Lease
Rate Caps duly executed by the parties thereto satisfying the requirements of Section 5A.12
on or prior to the Effective Date.

          (n) Material Adverse Change. No material adverse change shall have occurred with
respect to the business, operations, property or condition (financial or otherwise) of PHH and its
Subsidiaries taken as a whole since March 31, 2010.

          (o) Ratings of Series 2010-1 Investor Notes. The Administrative Agent shall have
received a letter from Moody’s stating that the Class A Investor Notes have received a rating of
“Aa2” and the Class B Note Purchasers shall have received a letter from Moody’s stating that the
Class B Investor Notes have received a rating of “A2.”

          (p) Ratings of Commercial Paper. Each Funding Agent shall have received, to the
extent required, evidence satisfactory to it that the purchase by the CP Conduit Purchaser in its
CP Conduit Purchaser Group of Class A Investor Notes hereunder will not result in a reduction or
withdrawal of the rating of such CP Conduit Purchaser’s Commercial Paper by any Rating Agency;

          (q) Agreed Upon Procedures. The Administrative Agent shall have received a letter of
independent certified public accountants of recognized national standing, addressed to each
Non-Conduit Purchaser and each CP Conduit Purchaser and the Funding Agent, the Program Support
Provider and the APA Banks with respect to such CP Conduit Purchaser, and dated as of a recent
date, in form and substance satisfactory to the Administrative Agent, concerning the agreed upon
procedures performed in respect of the Origination Trust Assets allocated to the Lease SUBI
Portfolio described on Exhibit F.

          (r) Class A Investor Notes. The Administrative Agent shall have received on or prior
to the Effective Date the duly executed Class A Investor Note(s) registered in the names of the
Non-Conduit Purchasers and the Funding Agents as nominee on behalf of their Related Purchaser
Groups.

          (s) Class B Investor Notes. Each Class B Note Purchaser shall have received on or
prior to the Effective Date a duly executed Class B Investor Note registered in its name or the
name of its nominee.

 

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ARTICLE 10

THE ADMINISTRATIVE AGENT

          SECTION 10.1. Appointment. Each of the Non-Conduit Purchasers, the CP Conduit Purchasers, the APA Banks and the
Funding Agents hereby irrevocably designates and appoints the Administrative Agent as the agent of
such Person under this Indenture Supplement and irrevocably authorizes the Administrative Agent, in
such capacity, to take such action on its behalf under the provisions of this Indenture Supplement
and to exercise such powers and perform such duties as are expressly delegated to the
Administrative Agent by the terms of this Indenture Supplement, together with such other powers as
are reasonably incidental thereto. Notwithstanding any provision to the contrary elsewhere in
this Indenture Supplement, the Administrative Agent shall not have any duties or responsibilities
except those expressly set forth herein, or any fiduciary relationship with any Non-Conduit
Purchaser, any CP Conduit Purchaser, any APA Bank or any Funding Agent, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities shall be read into this Indenture
Supplement or otherwise exist against the Administrative Agent.

          SECTION 10.2. Delegation of Duties. The Administrative Agent may execute any of its duties under this Indenture Supplement by
or through agents or attorneys-in-fact and shall be entitled to advice of counsel (who may be
counsel for the Issuer or the Administrator), independent public accountants and other experts
selected by it concerning all matters pertaining to such duties. The Administrative Agent shall
not be responsible for the negligence or misconduct of any agents or attorneys- in-fact selected by
it with reasonable care.

          SECTION 10.3. Exculpatory Provisions. Neither the Administrative Agent nor any of its officers, directors, employees, agents,
attorneys-in-fact or Affiliates shall be (i) liable for any action lawfully taken or omitted to be
taken by it or such Person under or in connection with the Base Indenture or this Indenture
Supplement (except to the extent that any of the foregoing are found by a final and nonappealable
decision of a court of competent jurisdiction to have resulted from its or such Person’s own gross
negligence or willful misconduct) or (ii) responsible in any manner to any of the Non-Conduit
Purchasers, the CP Conduit Purchasers, the APA Banks or the Funding Agents for any recitals,
statements, representations or warranties made by the Issuer, the Administrator or any officer
thereof contained in this Indenture Supplement or any other Transaction Document or in any
certificate, report, statement or other document referred to or provided for in, or received by the
Administrative Agent under or in connection with, this Indenture Supplement or any other
Transaction Document or for the value, validity, effectiveness, genuineness, enforceability or
sufficiency of this Indenture Supplement, any other Transaction Document, the Loan Note, the SUBI
Certificates, the Sold Units or the Fleet Receivables or for any failure of any of the Issuer, the
Administrator, SPV, Holdings, the Origination Trust or the Servicer to
perform its obligations hereunder or thereunder. The Administrative Agent shall not be under
any obligation to any Non-Conduit Purchaser, any CP Conduit Purchaser, any APA Bank or any Funding
Agent to ascertain or to inquire as to the observance or performance of any of the agreements
contained in, or conditions of, this Indenture Supplement, any other Transaction Document, the Loan
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the Sold Units or the Fleet Receivables or to inspect the properties, books or records of the
Issuer, the Administrator, SPV, Holdings, the Origination Trust or the Servicer.

          SECTION 10.4. Reliance by Administrative Agent. The Administrative Agent shall be entitled to rely, and shall be fully protected in
relying, upon any writing, resolution, notice, consent, certificate, affidavit, letter, telecopy,
telex or teletype message, statement, order or other document or conversation believed by it to be
genuine and correct and to have been signed, sent or made by the proper Person or Persons and upon
advice and statements of legal counsel (including, without limitation, counsel to the Issuer or the
Administrator), independent accountants and other experts selected by the Administrative Agent and
shall not be liable for any action taken or omitted to be taken by it in good faith in accordance
with the advice of such counsel, accountants or experts. The Administrative Agent may deem and
treat the registered holder of any Class A Investor Note as the owner thereof for all purposes
unless a written notice of assignment, negotiation or transfer thereof shall have been filed with
the Administrative Agent. The Administrative Agent shall be fully justified in failing or refusing
to take any action under this Indenture Supplement or any other Transaction Document unless it
shall first receive such advice or concurrence of the Non-Conduit Purchasers and the Funding
Agents, on behalf of the CP Conduit Purchasers, as it deems appropriate or it shall first be
indemnified to its satisfaction by the Non-Conduit Purchasers and the Funding Agents against any
and all liability and expense which may be incurred by it by reason of taking or continuing to take
any such action. The Administrative Agent shall in all cases be fully protected in acting, or in
refraining from acting, under this Indenture Supplement and the other Transaction Documents in
accordance with a request of the Series 2010-1 Required Investor Noteholders (unless, in the case
of any action relating to the giving of consent hereunder, the giving of such consent requires the
consent of all Class A Investor Noteholders), and such request and any action taken or failure to
act pursuant thereto shall be binding upon all the Non-Conduit Purchasers, the CP Conduit
Purchasers, the APA Banks and the Funding Agents.

          SECTION 10.5. Notice of Administrator Default or Amortization Event or Potential
Amortization Event. The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence
of any Amortization Event or Potential Amortization Event, any Event of Default or Default, any
Termination Event or any Servicer Default unless the Administrative Agent has received written
notice from a Non-Conduit Purchaser, a CP Conduit Purchaser, an APA Bank, a Funding Agent, the
Issuer, the Administrator, SPV, Holdings, the Origination Trust or the Servicer referring to the
Agreement or this Indenture Supplement, describing such Amortization Event or Potential
Amortization Event, Event of Default or Default, Termination Event or Servicer Default or and
stating that such notice is a “notice of an Amortization Event or Potential Amortization Event,”
“notice of an Event of Default or Default,” “notice of a Termination Event” or “notice of a
Servicer Default”, as the case may be. In the event that the Administrative Agent receives such a
notice, the Administrative Agent shall give notice thereof to the Non-Conduit Purchasers, the
Funding Agents, the Indenture Trustee, the Issuer and the Administrator. The Administrative Agent
shall take such action with respect to such event as shall be reasonably directed by the Series
2010-1 Required Investor Noteholders, provided that unless and until the
Administrative Agent shall have received such directions, the Administrative Agent may (but
shall not be obligated to) take such action, or refrain from taking such action, with respect to
such event as it shall deem advisable in the best interests of the Purchasers.

 

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          SECTION 10.6. Non-Reliance on the Administrative Agent and Other Purchasers. Each of the Non-Conduit Purchasers, the CP Conduit Purchasers, the APA Banks and the
Funding Agents expressly acknowledges that neither the Administrative Agent nor any of its
officers, directors, employees, agents, attorneys-in-fact or Affiliates has made any
representations or warranties to it and that no act by the Administrative Agent hereinafter taken,
including any review of the affairs of the Issuer, shall be deemed to constitute any representation
or warranty by the Administrative Agent to any such Person. Each of the Non-Conduit Purchasers,
the CP Conduit Purchasers, the APA Banks and the Funding Agents represents to the Administrative
Agent that it has, independently and without reliance upon the Administrative Agent or any other
Non-Conduit Purchaser, CP Conduit Purchaser, APA Bank or Funding Agent and based on such documents
and information as it has deemed appropriate, made its own appraisal of and investigation into the
business, operations, property, financial and other condition and creditworthiness of the Issuer,
the Administrator, SPV, Holdings, the Origination Trust and the Servicer and made its own decision
to enter into this Indenture Supplement. Each of the Non-Conduit Purchasers, the CP Conduit
Purchasers, the APA Banks and the Funding Agents also represents that it will, independently and
without reliance upon the Administrative Agent or any other Non-Conduit Purchaser, CP Conduit
Purchaser, APA Bank or Funding Agent, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under this Indenture Supplement and the other Transaction Documents,
and to make such investigation as it deems necessary to inform itself as to the business,
operations, property, financial and other condition and creditworthiness of the Issuer, the
Administrator, SPV, Holdings, the Origination Trust and the Servicer. Except for notices, reports
and other documents expressly required to be furnished to the Funding Agents by the Administrative
Agent hereunder, the Administrative Agent shall have no duty or responsibility to provide any
Non-Conduit Purchaser, any CP Conduit Purchaser, any APA Bank or any Funding Agent with any credit
or other information concerning the business, operations, property, condition (financial or
otherwise), prospects or creditworthiness of the Issuer, the Administrator, SPV, Holdings, the
Origination Trust or the Servicer which may come into the possession of the Administrative Agent or
any of its officers, directors, employees, agents, attorneys-in-fact or Affiliates.

          SECTION 10.7. Indemnification. Each of the Non-Conduit Purchasers and the APA Banks in a CP Conduit Purchaser Group agrees
to indemnify the Administrative Agent in its capacity as such (to the extent not reimbursed by the
Issuer and the Administrator and without limiting the obligation of the Issuer and the
Administrator to do so), ratably according to their respective Commitment Percentages in effect on
the date on which indemnification is sought under this Section 10.7 (or if indemnification
is sought after the date upon which the Commitments shall have terminated and the Purchaser Group
Invested Amounts shall have been reduced to zero, ratably in accordance with their Commitment
Percentages immediately prior to such date of payment),
from and against any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind whatsoever which may at any time be
imposed on, incurred by or asserted against the Administrative Agent in any way relating to or
arising out of this Indenture Supplement, any of the other Transaction Documents or any documents
contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby
or any action taken or omitted by the Administrative Agent under or in connection with any of the
foregoing; provided that no Non-Conduit Purchaser, APA

 

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Bank or Funding Agent shall be liable for the payment of any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements that are found by a final and nonappealable decision of a court of competent
jurisdiction to have resulted from the Administrative Agent’s gross negligence or willful
misconduct. The agreements in this Section shall survive the payment of all amounts payable
hereunder.

          SECTION 10.8. The Administrative Agent in Its Individual Capacity. The Administrative Agent and its Affiliates may make loans to, accept deposits from and
generally engage in any kind of business with the Issuer, the Administrator or any of their
Affiliates as though the Administrative Agent were not the Administrative Agent hereunder. With
respect to any Series 2010-1 Investor Note held by the Administrative Agent, the Administrative
Agent shall have the same rights and powers under this Indenture Supplement and the other
Transaction Documents as any APA Bank or Funding Agent and may exercise the same as though it were
not the Administrative Agent, and the terms “APA Bank,” and “Funding Agent” shall include the
Administrative Agent in its individual capacity.

          SECTION 10.9. Resignation of Administrative Agent; Successor Administrative
Agent. The Administrative Agent may resign as Administrative Agent at any time by giving 30 days’
notice to the Non-Conduit Purchasers, the Funding Agents, the Indenture Trustee, the Issuer and the
Administrator. The Administrative Agent may be removed at any time by resolution of the Series
2010-1 Required Investor Noteholders, removing the Administrative Agent and appointing from among
the Funding Agents a successor administrative agent, which successor administrative agent shall be
approved by the Issuer and the Administrator (which approval shall not be unreasonably withheld),
delivered to the Administrative Agent, the Indenture Trustee and the Administrator. If JPMorgan
Chase shall resign as Administrative Agent under this Indenture Supplement, then the Series 2010-1
Required Investor Noteholders shall promptly appoint a successor administrative agent from among
the Funding Agents, which successor administrative agent shall be approved by the Issuer and the
Administrator (which approval shall not be unreasonably withheld). If no successor administrative
agent is appointed prior to the effective date of the resignation of the Administrative Agent, the
Administrative Agent may appoint, after consulting with the Non-Conduit Purchasers, the Funding
Agents, the Issuer and the Administrator, a successor agent from among the Non-Conduit Purchasers
and the Funding Agents. If no successor administrative agent has accepted appointment as
Administrative Agent by the date which is 30 days following a retiring Administrative Agent’s
notice of resignation, the retiring Administrative Agent’s resignation shall nevertheless thereupon
become effective and the Administrator shall assume and perform all of the duties of the
Administrative Agent hereunder until such time, if any, as the Series 2010-1 Required Investor
Noteholders appoint a successor agent as provided for above. Effective upon the appointment of a
successor administrative agent, such successor administrative agent shall succeed to the rights,
powers and duties of the Administrative Agent, and the term “Administrative Agent” shall mean such
successor administrative agent effective upon such appointment and approval, and the former
Administrative Agent’s rights, powers and duties as Administrative Agent shall be terminated,
without any other or further act or deed on the part of such former Administrative Agent or any of
the parties to this Indenture Supplement. After any retiring Administrative Agent’s resignation as
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Article 10 shall inure to its benefit as to any actions taken or omitted to be taken by it while it
was Administrative Agent under this Indenture Supplement.

ARTICLE 11

THE FUNDING AGENTS

          SECTION 11.1. Appointment. Each CP Conduit Purchaser and each APA Bank with respect to such CP Conduit Purchaser
hereby irrevocably designates and appoints the Funding Agent set forth next to such CP Conduit
Purchaser’s name on Schedule I as the agent of such Person under this Indenture Supplement and
irrevocably authorizes such Funding Agent, in such capacity, to take such action on its behalf
under the provisions of this Indenture Supplement and to exercise such powers and perform such
duties as are expressly delegated to such Funding Agent by the terms of this Indenture Supplement,
together with such other powers as are reasonably incidental thereto. Notwithstanding any
provision to the contrary elsewhere in this Indenture Supplement, each Funding Agent shall not have
any duties or responsibilities except those expressly set forth herein, or any fiduciary
relationship with any CP Conduit Purchaser or APA Bank and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this Indenture Supplement
or otherwise exist against each Funding Agent.

          SECTION 11.2. Delegation of Duties. Each Funding Agent may execute any of its duties under this Indenture Supplement by or
through agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties. Each Funding Agent shall not be responsible to the CP Conduit
Purchaser or any APA Bank in its CP Conduit Purchaser Group for the negligence or misconduct of any
agents or attorneys-in-fact selected by it with reasonable care.

          SECTION 11.3. Exculpatory Provisions. Each Funding Agent and any of its officers, directors, employees, agents, attorneys-in-fact
or Affiliates shall not be (i) liable for any action lawfully taken or omitted to be taken by it or
such Person under or in connection with the Base Indenture or this Indenture Supplement (except to
the extent that any of the foregoing are found by a final and nonappealable decision of a court of
competent jurisdiction to have resulted from its or such Person’s own gross negligence or willful
misconduct) or (ii) responsible in any manner to any of the CP Conduit Purchasers and/or APA Banks
for any recitals, statements, representations or warranties made by the Issuer, the Administrator,
the Administrative Agent, or any officer thereof contained in this Indenture Supplement or any
other Transaction Document or in any certificate, report, statement or other document referred to
or provided for in, or received by such Funding Agent under or in connection with, this Indenture
Supplement or any other Transaction Document or for the value, validity, effectiveness,
genuineness, enforceability or sufficiency of this Indenture Supplement, any other Transaction
Document, or for any failure of any of the
Issuer, the Administrator, SPV, Holdings, the Origination Trust, the Servicer or the
Administrative Agent to perform its obligations hereunder or thereunder. Each Funding Agent shall
not be under any obligation to the CP Conduit Purchaser or any APA Bank in its CP Conduit Purchaser
Group to ascertain or to inquire as to the observance or performance of any of the agreements
contained in, or conditions of, this Indenture Supplement, any other Transaction Document, the Loan
Note, the SUBI Certificates, the Sold Units or the Fleet Receivables or to

 

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inspect the properties, books or records of the Issuer, the Administrator, SPV, Holdings, the
Origination Trust, the Servicer or the Administrative Agent.

          SECTION 11.4. Reliance by Each Funding Agent. Each Funding Agent shall be entitled to rely, and shall be fully protected in relying, upon
any writing, resolution, notice, consent, certificate, affidavit, letter, telecopy, telex or
teletype message, statement, order or other document or conversation believed by it to be genuine
and correct and to have been signed, sent or made by the proper Person or Persons and upon advice
and statements of legal counsel (including, without limitation, counsel to the Issuer or the
Administrator), independent accountants and other experts selected by such Funding Agent. Each
Funding Agent shall be fully justified in failing or refusing to take any action under this
Indenture Supplement or any other Transaction Document unless it shall first receive such advice or
concurrence of the Related Purchaser Group, as it deems appropriate or it shall first be
indemnified to its satisfaction by the Related Purchaser Group against any and all liability and
expense which may be incurred by it by reason of taking or continuing to take any such action.

          SECTION 11.5. Notice of Administrator Default or Amortization Event or Potential
Amortization Event. Each Funding Agent shall not be deemed to have knowledge or notice of the occurrence of any
Amortization Event or Potential Amortization Event, any Event of Default or Default, any
Termination Event or any Servicer Default unless such Funding Agent has received written notice
from a Non-Conduit Purchaser, a CP Conduit Purchaser, an APA Bank, the Issuer, the Administrator,
the Servicer, SPV, Holdings, or the Origination Trust referring to the Indenture or this Indenture
Supplement, describing such Amortization Event or Potential Amortization Event, Event of Default or
Default, Termination Event or Servicer Default or and stating that such notice is a “notice of an
Amortization Event or Potential Amortization Event,” “notice of an Event of Default or Default,”
“notice of a Termination Event” or “notice of a Servicer Default”, as the case may. In the event
that any Funding Agent receives such a notice, such Funding Agent shall give notice thereof to the
CP Conduit Purchaser and APA Banks in its CP Conduit Purchaser Group. Such Funding Agent shall
take such action with respect to such event as shall be reasonably directed by the CP Conduit
Purchaser and APA Banks in its CP Conduit Purchaser Group, provided that unless and until
such Funding Agent shall have received such directions, such Funding Agent may (but shall not be
obligated to) take such action, or refrain from taking such action, with respect to such event as
it shall deem advisable in the best interests of the CP Conduit Purchaser and APA Banks in its CP
Conduit Purchaser Group.

          SECTION 11.6. Non-Reliance on Each Funding Agent and Other CP Conduit Purchaser Groups. Each CP Conduit Purchaser and each of the related APA Banks expressly acknowledge that
neither its Funding Agent nor any of its officers, directors, employees, agents, attorneys-in-fact
or Affiliates has made any representations or warranties to it and that no act by such Funding
Agent hereinafter taken, including any review of the affairs of the Issuer shall be deemed to
constitute any representation or warranty by such Funding Agent to any such Person.
Each CP Conduit Purchaser and each of the related APA Banks represents to its Funding Agent
that it has, independently and without reliance upon such Funding Agent and based on such documents
and information as it has deemed appropriate, made its own appraisal of and investigation into the
business, operations, property, financial and other condition and creditworthiness of the Issuer,
the Administrator, SPV, Holdings, the Origination Trust and the Servicer. Each

 

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CP Conduit Purchaser and each of the related APA Banks also represents that it will, independently
and without reliance upon its Funding Agent and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under this Indenture Supplement and the other Transaction Documents,
and to make such investigation as it deems necessary to inform itself as to the business,
operations, property, financial and other conditions and creditworthiness of the Issuer, the
Administrator, SPV, Holdings, the Origination Trust and the Servicer.

          SECTION 11.7. Indemnification. Each APA Bank in a CP Conduit Purchaser Group agrees to indemnify its Funding Agent in its
capacity as such (to the extent not reimbursed by the Issuer and the Administrator and without
limiting the obligation of the Issuer and the Administrator to do so), ratably according to its
respective APA Bank Percentage in effect on the date on which indemnification is sought under this
Section 11.7 (or if indemnification is sought after the date upon which the Commitments
shall have been terminated, ratably in accordance with its APA Bank Percentage at the time of
termination) from and against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever which may at any
time be imposed on, incurred by or asserted against such Funding Agent in any way relating to or
arising out of this Indenture Supplement, any of the other Transaction Documents or any documents
contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby
or any action taken or omitted by such Funding Agent under or in connection with any of the
foregoing; provided that no APA Bank shall be liable for the payment of any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements that are found by a final and nonappealable decision of a court of competent
jurisdiction to have resulted from such related Funding Agent’s gross negligence or willful
misconduct. The agreements in this Section shall survive the payment of all amounts payable
hereunder.

ARTICLE 12

MISCELLANEOUS

          SECTION 12.1. Ratification of Indenture. As supplemented by this Indenture Supplement, the Indenture is in all respects ratified and
confirmed and the Indenture as so supplemented by this Indenture Supplement shall be read, taken
and construed as one and the same instrument.

          SECTION 12.2. Governing Law. THIS INDENTURE SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEW YORK,
AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

 

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          SECTION 12.3. Further Assurances. Each of the Issuer, the Administrator and the Indenture Trustee agrees, at the
Administrator’s expense, from time to time, to do and perform any and all acts and to execute any
and all further instruments required or reasonably requested by the Administrative Agent more fully
to effect the purposes of this Indenture Supplement and the sale of the Series 2010-1 Investor
Notes hereunder. The Issuer hereby authorizes the Administrative Agent to file any financing
statements or similar documents or notices or continuation statements in order to perfect the
Indenture Trustee’s security interest in the Series 2010-1 Collateral.

          SECTION 12.4. Payments. Each payment to be made hereunder shall be made on the required payment date in lawful
money of the United States and in immediately available funds, if to a CP Conduit Purchaser Group,
at the office of the Funding Agent with respect to such CP Conduit Purchaser Group set forth in
Section 12.9, and, if to a Non-Conduit Purchaser Group, at the office of the Related
Non-Conduit Purchaser set forth in Section 12.9.

          SECTION 12.5. Costs and Expenses. The Administrator agrees to pay on demand all reasonable out-of-pocket costs and expenses
of the Administrative Agent (including, without limitation, reasonable fees and disbursements of
counsel to the Administrative Agent) and of each Purchaser Group and each Class B Note Purchaser
(including in connection with the preparation, execution and delivery of this Indenture Supplement
the reasonable fees and disbursements of counsel to such Purchaser Group or Class B Note Purchaser)
in connection with (i) the preparation, execution, delivery and administration (including periodic
auditing and any requested amendments, waivers or consents) of this Indenture Supplement, the
Indenture and the other Transaction Documents and amendments or waivers of any such documents and
(ii) the enforcement by the Administrative Agent, any Non-Conduit Purchaser, any Funding Agent or
any Class B Note Purchaser of the obligations and liabilities of the Issuer, the Administrator,
SPV, Holdings, the Origination Trust, VMS, the Back-up Servicer and the Servicer under the
Indenture, this Indenture Supplement or the other Transaction Documents and all costs and expenses,
if any (including reasonable counsel fees and expenses), in connection with the enforcement of this
Agreement and the other Transaction Documents.

          SECTION 12.6. No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of the Indenture Trustee,
the Administrative Agent, any Non-Conduit Purchaser, any Funding Agent, any CP Conduit Purchaser,
any APA Bank or any Class B Note Purchaser, any right, remedy, power or privilege hereunder shall
operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power
or privilege hereunder preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and
privileges herein provided are cumulative and not exhaustive of any rights, remedies, powers and
privileges provided by law.

          SECTION 12.7. Amendments. (a) This Indenture Supplement may be amended in writing from time to time by the
Administrator, the Issuer and the Indenture Trustee, with the consent of the Series 2010-1 Majority
in Interest; provided that, notwithstanding the foregoing, without the consent of each Non-Conduit
Purchaser, each CP Conduit Purchaser and each APA Bank and, except in the case of clause (ii)(B) or
(ii)(C) (except with respect to any amendment to Section 7.3), each Class B Note Purchaser, no such
amendment shall:

 

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     (i) reduce the percentage of Series 2010-1 Investor Noteholders whose consent
is required to take any particular action hereunder;

     (ii) (A) extend the due date for, or reduce the amount of any scheduled
repayment or prepayment of principal of or interest on any Series 2010-1 Investor
Note (or reduce the principal amount of or rate of interest on any Series 2010-1
Investor Note); provided, however, that (x) the Class B Note Margin may be reduced
or the rate of interest on the Class B Investor Notes may otherwise be reduced
without the consent of any Non-Conduit Purchaser, CP Conduit Purchaser or APA Bank
and (y) the rate of interest on the Class A Investor Notes may be reduced without
the consent of any Class B Note Purchaser;

     (B) extend the due date for, or reduce the amount of any Commitment Fee
payable hereunder;

     (C) change the calculation of any Article 7 Costs or other amounts
payable by the Issuer to the Non-Conduit Purchasers, the CP Conduit
Purchasers, APA Banks or Program Support Providers hereunder;

     (D) modify Section 5A.4(c);

     (E) approve the assignment or transfer by the Issuer of any of its
rights or obligations hereunder or under any other Transaction Document to
which it is a party except pursuant to the express terms hereof or thereof;

     (F) release any obligor under any Transaction Document to which it is a
party except pursuant to the express terms of such Transaction Document;

     (G) amend or otherwise modify any Amortization Event or any defined
term referred to therein;

     (H) amend or otherwise modify the Series 2010-1 Required Asset Amount,
the Series 2010-1 Required Overcollateralization Amount, the Series 2010-1
Required Enhancement Amount or any defined term referred to therein; or

     (I) permit the creation of any Lien ranking prior to or on a parity
with the Indenture Trustee’s Lien on the Series 2010-1 Collateral, release
such Lien except pursuant to the express terms hereof or deprive any Series
2010-1 Investor Noteholder of the security afforded by such Lien; and

     (iii) modify Section 12.7(a).

          (b) Any amendment hereof can be effected without the Administrative Agent’s being party
thereto; provided, however, that no such amendment, modification or waiver

 

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of this Indenture Supplement that affects rights or duties of the Administrative Agent shall be
effective unless the Administrative Agent shall have given its prior written consent thereto.

          (c) The Administrator shall provide prior notice of any amendment hereof to the Rating
Agencies. Promptly after the execution of any amendment hereof, the Administrator shall mail to
each of the Non-Conduit Purchasers, the Funding Agents, each Class B Note Purchaser and each Rating
Agency a copy thereof.

          SECTION 12.8. Severability. If any provision hereof is void or unenforceable in any jurisdiction, such voidness or
unenforceability shall not affect the validity or enforceability of (i) such provision in any other
jurisdiction or (ii) any other provision hereof in such or any other jurisdiction.

          SECTION 12.9. Notices. All notices, requests, instructions and demands to or upon any party hereto to be effective
shall be given (i) in the case of the Issuer, the Administrator and the Indenture Trustee, in the
manner set forth in Section 13.4 of the Base Indenture and (ii) in the case of the
Administrative Agent, the Non-Conduit Purchasers, the CP Conduit Purchasers, the APA Banks, the
Funding Agents and the Class B Note Purchasers, in writing, and, unless otherwise expressly
provided herein, shall be deemed to have been duly given or made when delivered by hand or three
days after being deposited in the mail, postage prepaid, in the case of facsimile notice, when
received, or in the case of overnight air courier, one Business Day after the date such notice is
delivered to such overnight courier, addressed as follows in the case of the Administrative Agent
and to the addresses therefor set forth in Schedule I or in the Transfer Supplement or Purchaser
Group Supplement pursuant to which it became a party to this Indenture Supplement, in the case of
the Non-Conduit Purchasers, the CP Conduit Purchasers, the APA Banks and the Funding Agents, or in
Schedule II, in the case of the Class B Note Purchasers; or to such other address as may be
hereafter notified by the respective parties hereto:

	 	Administrative

Agent: 	 	 
JPMorgan Chase Bank, N.A.

c/o J.P. Morgan Securities Inc.

10 South Dearborn, 13th Floor

Chicago, Illinois 60670

Attention: Asset-Backed Finance

Fax (312) 732-3600

          SECTION 12.10. Successors and Assigns. (a) This Indenture Supplement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns, except that (i) the Issuer may not assign or
transfer any of its rights under this Indenture Supplement without the prior written consent of all
of the Series 2010-1 Investor Noteholders, (ii) no Non-Conduit Purchaser may assign or transfer any
of its rights under this Indenture Supplement other than pursuant to
paragraph (e), (f) or (h) below of this Section 12.10, (iii) no CP Conduit Purchaser
may assign or transfer any of its rights under this Indenture Supplement other than in accordance
with the Asset Purchase Agreement with respect to such CP Conduit Purchaser or otherwise to the APA
Bank with respect to such CP Conduit Purchaser or a Program Support Provider with respect to such
CP Conduit Purchaser or pursuant to paragraph (b) or (e) below of this Section
12.10, (iv) no APA Bank may assign or transfer any of

 

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its rights or obligations under this Indenture Supplement except to a Program Support Provider or
pursuant to paragraph (c), (d), (e) or (h) below of this Section 12.10 and (v) no Class B
Investor Noteholder may assign or transfer any of its rights or obligations under this Indenture
Supplement or in respect of its Class B Investor Note except pursuant to paragraph (g) or (h) below
of this Section 12.10.

          (b) Without limiting the foregoing, each CP Conduit Purchaser may assign all or a portion of
the Purchaser Group Invested Amount with respect to such CP Conduit Purchaser and its rights and
obligations under this Indenture Supplement and any other Transaction Documents to which it is a
party to a Conduit Assignee with respect to such CP Conduit Purchaser. Prior to or concurrently
with the effectiveness of any such assignment (or if impracticable, immediately thereafter), the
assigning CP Conduit Purchaser shall notify the Administrative Agent, the Issuer, the Indenture
Trustee and the Administrator thereof. Upon such assignment by a CP Conduit Purchaser to a Conduit
Assignee, (A) such Conduit Assignee shall be the owner of the Purchaser Group Invested Amount or
such portion thereof with respect to such CP Conduit Purchaser, (B) the related administrative or
managing agent for such Conduit Assignee will act as the administrative agent for such Conduit
Assignee hereunder, with all corresponding rights and powers, express or implied, granted to the
Funding Agent hereunder or under the other Transaction Documents, (C) such Conduit Assignee and its
liquidity support provider(s) and credit support provider(s) and other related parties shall have
the benefit of all the rights and protections provided to such CP Conduit Purchaser herein and in
the other Transaction Documents (including, without limitation, any limitation on recourse against
such Conduit Assignee as provided in this paragraph), (D) such Conduit Assignee shall assume all of
such CP Conduit Purchaser’s obligations, if any, hereunder or under the Base Indenture or under any
other Transaction Document with respect to such portion of the Purchaser Group Invested Amount and
such CP Conduit Purchaser shall be released from such obligations, (E) all distributions in respect
of the Purchaser Group Invested Amount or such portion thereof with respect to such CP Conduit
Purchaser shall be made to the applicable agent or administrative agent, as applicable, on behalf
of such Conduit Assignee, (F) the definitions of the terms “Class A Monthly Funding Costs” and
“Discount” shall be determined in the manner set forth in the definition of “Class A Monthly
Funding Costs” and “Discount” applicable to such CP Conduit Purchaser on the basis of the interest
rate or discount applicable to commercial paper issued by such Conduit Assignee (rather than such
CP Conduit Purchaser), (G) the defined terms and other terms and provisions of this Indenture
Supplement, the Base Indenture and the other Transaction Documents shall be interpreted in
accordance with the foregoing, and (H) if requested by the Administrative Agent or the agent or
administrative agent with respect to the Conduit Assignee, the parties will execute and deliver
such further agreements and documents and take such other actions as the Administrative Agent or
such agent or administrative agent may reasonably request to evidence and give effect to the
foregoing.

          (c) Any APA Bank may, in the ordinary course of its business and in accordance with applicable
law, at any time sell all or any part of its rights and obligations under this Indenture Supplement
and the Class A Investor Notes, with the prior written consent of the Administrative Agent, the
Issuer and the Administrator (in each case, which consent shall not be unreasonably withheld), to
one or more banks (an “Acquiring APA Bank”) pursuant to a transfer
supplement, substantially in the form of Exhibit I (the “Transfer Supplement”),
executed by such Acquiring APA Bank, such assigning APA Bank, the Funding Agent with respect to
such APA

 

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Bank, the Administrative Agent, the Issuer and the Administrator and delivered to the
Administrative Agent. Notwithstanding the foregoing, no APA Bank shall so sell its rights
hereunder if such Acquiring APA Bank is not an Eligible Assignee.

          (d) Any APA Bank may, in the ordinary course of its business and in accordance with applicable
law, at any time sell to one or more financial institutions or other entities (“APA Bank
Participants”) participations in its APA Bank Percentage of the Commitment of the APA Banks in
its CP Conduit Purchaser Group, its APA Bank Percentage of the Class A Investor Note of its CP
Conduit Purchaser Group and its rights hereunder pursuant to documentation in form and substance
satisfactory to such APA Bank and the APA Bank Participant; provided, however, that
(i) in the event of any such sale by an APA Bank to an APA Bank Participant, (A) such APA Bank’s
obligations under this Indenture Supplement shall remain unchanged, (B) such APA Bank shall remain
solely responsible for the performance thereof and (C) the Issuer and the Administrative Agent
shall continue to deal solely and directly with such APA Bank in connection with its rights and
obligations under this Indenture Supplement and (ii) no APA Bank shall sell any participating
interest under which the APA Bank Participant shall have rights to approve any amendment to, or any
consent or waiver with respect to, this Indenture Supplement or any Transaction Document, except to
the extent that the approval of such amendment, consent or waiver otherwise would require the
unanimous consent of all APA Banks hereunder. An APA Bank Participant shall have the right to
receive Article 7 Costs but only to the extent that the related selling APA Bank would have had
such right absent the sale of the related participation.

          (e) Any CP Conduit Purchaser and the APA Bank with respect to such CP Conduit Purchaser may at
any time sell all or any part of their respective rights and obligations, and any Non-Conduit
Purchaser may at any time sell all or any part of its rights and obligations, under this Indenture
Supplement and the Class A Investor Notes, with the prior written consent of the Administrative
Agent, the Issuer and the Administrator (in each case, which consent shall not be unreasonably
withheld), to a multi-seller commercial paper conduit and one or more banks providing support to
such multi-seller commercial paper conduit or to a financial institution or other entity (an
“Acquiring Purchaser Group”) pursuant to a transfer supplement, substantially in the form
of Exhibit J (the “Purchaser Group Supplement”), executed by such Acquiring Purchaser
Group, the Funding Agent, if any, with respect to such Acquiring Purchaser Group (including the CP
Conduit Purchaser and the APA Banks, if any, with respect to such Acquiring Purchaser Group), such
assigning Purchaser Group (including the CP Conduit Purchaser and the APA Banks, if any, with
respect to such assigning Purchaser Group and the Funding Agent, if any, with respect to such
assigning Purchaser Group) and the Administrative Agent, the Issuer and the Administrator and
delivered to the Administrative Agent.

          (f) Any Non-Conduit Purchaser may, in the ordinary course of its business and in accordance
with applicable law, at any time sell to one or more financial institutions or other entities
(“Non-Conduit Purchaser Participants”) participations in its Commitment, its Class A
Investor Note and its rights hereunder pursuant to documentation in form and substance satisfactory
to such Non-Conduit Purchaser and the Non-Conduit Purchaser Participant;
provided, however, that (i) in the event of any such sale by a Non-Conduit
Purchaser to a Non-Conduit Purchaser Participant, (A) such Non-Conduit Purchaser’s obligations
under this Indenture Supplement shall remain unchanged, (B) such Non-Conduit Purchaser shall remain

 

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solely responsible for the performance thereof and (C) the Issuer and the Administrative Agent
shall continue to deal solely and directly with such Non-Conduit Purchaser in connection with its
rights and obligations under this Indenture Supplement and (ii) no Non-Conduit Purchaser shall sell
any participating interest under which the Non-Conduit Purchaser Participant shall have rights to
approve any amendment to, or any consent or waiver with respect to, this Indenture Supplement or
any Transaction Document, except to the extent that the approval of such amendment, consent or
waiver otherwise would require the unanimous consent of all Class A Investor Noteholders hereunder.
A Non-Conduit Purchaser Participant shall have the right to receive Article 7 Costs but only to
the extent that the related selling Non-Conduit Purchaser would have had such right absent the sale
of the related participation.

          (g) Any Class B Note Purchaser may in accordance with applicable law, at any time sell all or
any part of its rights and obligations under this Indenture Supplement and its Class B Investor
Notes to one or more Persons (an “Acquiring Class B Note Purchaser”), with the prior
written consent of the Issuer and the Administrator (in each case, which consent shall not be
unreasonably withheld) pursuant to a transfer supplement substantially in the form of Exhibit K
(the “Class B Note Transfer Supplement”), executed by such Acquiring Class B Note
Purchaser, such assigning Class B Note Purchaser, the Issuer and the Administrator. Any Class B
Note Purchaser may, in the ordinary course of its business and in accordance with applicable law,
at any time sell to one or more financial institutions or other entities (“Class B
Participants”) participations in its Class B Investor Note and its rights hereunder pursuant to
documentation in form and substance satisfactory to such Class B Note Purchaser and the Class B
Participant; provided, however, that (i) the Issuer and the Administrator shall
continue to deal solely and directly with such Class B Note Purchaser in connection with its rights
and obligations under this Indenture Supplement and its Class B Investor Note and (ii) no Class B
Note Purchaser shall sell any participating interest under which the Class B Participant shall have
rights to approve any amendment to, or any consent or waiver with respect to, this Indenture
Supplement or any Transaction Document, except to the extent that the approval of such amendment,
consent or waiver otherwise would require the unanimous consent of all Class B Note Purchasers
hereunder. A Class B Participant shall have the right to receive Article 7 Costs but only to the
extent that the related selling Class B Note Purchaser would have had such right absent the sale of
the related participation.

          (h) Notwithstanding any other provision of this Indenture Supplement to the contrary, (i) any
Non-Conduit Purchaser, any APA Bank or any Program Support Provider may at any time pledge or grant
a security interest in all or any portion of its rights under its Class A Investor Note and this
Indenture Supplement to secure obligations of such Non-Conduit Purchaser, such APA Bank or such
Program Support Provider to a Federal Reserve Bank, without notice to or consent of the
Administrative Agent, the Issuer or the Administrator, and (ii) any Class B Note Purchaser may at
any time pledge or grant a security interest in all or any portion of its rights under its Class B
Investor Note and this Indenture Supplement to secure obligations of such Class B Note Purchaser to
a Federal Reserve Bank, without notice to or
consent of the Issuer or the Administrator; provided that no such pledge or grant of a
security interest shall release a Non-Conduit Purchaser, an APA Bank or a Class B Note Purchaser
from any of its obligations hereunder or substitute any such pledgee or grantee for such
Non-Conduit Purchaser, such APA Bank or such Class B Note Purchaser as a party hereto.

 

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          (i) For so long as any of the Series 2010-1 Investors Notes are “restricted securities” within
the meaning of Rule 144(a)(3) under the Securities Act, the Administrator agrees to provide to any
Series 2010-1 Investor Noteholder and to any prospective purchaser of Series 2010-1 Investor Notes
designated by such Series 2010-1 Investor Noteholder upon the request of such Series 2010-1
Investor Noteholder or prospective purchaser, any information required to be provided to such
holder or prospective purchaser to satisfy the conditions set forth in Rule 144A(d)(4) under the
Securities Act.

          SECTION 12.11. Securities Laws. Each Non-Conduit Purchaser, CP Conduit Purchaser, APA Bank and Class B Note Purchaser
hereby represents and warrants to the Issuer that it is an “accredited investor” as such term is
defined in Rule 501(a) of Regulation D under the Securities Act and has sufficient assets to bear
the economic risk of, and sufficient knowledge and experience in financial and business matters to
evaluate the merits and risks of, its investment in a Series 2010-1 Investor Note. Each
Non-Conduit Purchaser, CP Conduit Purchaser, each APA Bank and each Class B Note Purchaser agrees
that its Series 2010-1 Investor Note will be acquired for investment only and not with a view to
any public distribution thereof, and that such Non-Conduit Purchaser, CP Conduit Purchaser, APA
Bank or Class B Note Purchaser will not offer to sell or otherwise dispose of its Series 2010-1
Investor Note (or any interest therein) in violation of any of the registration requirements of the
Securities Act, or any applicable state or other securities laws. Each Non-Conduit Purchaser, CP
Conduit Purchaser, each APA Bank and each Class B Note Purchaser acknowledges that it has no right
to require the Issuer to register its Series 2010-1 Investor Note under the Securities Act or any
other securities law. Each Non-Conduit Purchaser, CP Conduit Purchaser, each APA Bank and each
Class B Note Purchaser hereby confirms and agrees that in connection with any transfer by it of an
interest in the Series 2010-1 Investor Note, such Non-Conduit Purchaser, CP Conduit Purchaser, APA
Bank or Class B Note Purchaser has not engaged and will not engage in a general solicitation or
general advertising including advertisements, articles, notices or other communications published
in any newspaper, magazine or similar media or broadcast over radio or television, or any seminar
or meeting whose attendees have been invited by any general solicitation or general advertising.

          SECTION 12.12. Adjustments; Set-off. (a) If any member of a Purchaser Group (a “Benefitted Purchaser Group”) shall at
any time receive in respect of its Purchaser Group Invested Amount any distribution of principal,
interest, Commitment Fees or any interest thereon, or receive any collateral in respect thereof
(whether voluntarily or involuntarily, by set-off or otherwise) in a greater proportion than any
such distribution received by any other Purchaser Group, if any, in respect of such other Purchaser
Group’s Purchaser Group Invested Amount, or interest thereon, such Benefitted Group Purchaser shall
purchase for cash from the other Purchaser Group such portion of such other
Purchaser Group’s interest in the Class A Investor Notes, or shall provide such other
Purchaser Group with the benefits of any such collateral, or the proceeds thereof, as shall be
necessary to cause such Benefitted Purchaser Group to share the excess payment or benefits of such
collateral or proceeds ratably with the other Purchaser Group; provided, however,
that if all or any portion of such excess payment or benefits is thereafter recovered from such
Benefitted Purchaser Group, such purchase shall be rescinded, and the purchase price and benefits
returned, to the extent of such recovery, but without interest. The Issuer agrees that any
Purchaser Group so purchasing a portion of another Purchaser Group’s Purchaser Group Invested
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(including, without limitation, rights of set-off) with respect to such portion as fully as if such
Purchaser Group were the direct holder of such portion.

          (b) In addition to any rights and remedies of the Purchaser Groups provided by law, each
member of a Purchaser Group shall have the right, without prior notice to the Issuer, any such
notice being expressly waived by the Issuer to the extent permitted by applicable law, upon any
amount becoming due and payable by the Issuer hereunder or under the Class A Investor Notes to
set-off and appropriate and apply against any and all deposits (general or special, time or demand,
provisional or final), in any currency, and any other credits, indebtedness or claims, in any
currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at
any time held or owing by such member to or for the credit or the account of the Issuer. Each
Non-Conduit Purchaser, each CP Conduit Purchaser and each APA Bank agrees promptly to notify the
Issuer and the Administrative Agent after any such set-off and application made by such Person;
provided that the failure to give such notice shall not affect the validity of such set-off
and application.

          SECTION 12.13. Counterparts. This Indenture Supplement may be executed in any number of counterparts and by the
different parties hereto in separate counterparts, each of which when so executed shall be deemed
to be an original, and all of which taken together shall constitute one and the same agreement.

          SECTION 12.14. No Bankruptcy Petition. (a) Each of the Administrative Agent, the Non-Conduit Purchasers, the CP Conduit
Purchasers, the APA Banks, the Funding Agents and the Class B Note Purchasers hereby covenants and
agrees that, prior to the date which is one year and one day after the later of (i) the last day of
the Series 2010-1 Amortization Period and (ii) the last day of the amortization period of any other
Outstanding Series, it will not institute against, or join any other Person in instituting against,
the Issuer any involuntary, bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings, or other similar proceedings under any federal or state bankruptcy or similar law.

          (b) The Issuer, the Administrator, the Indenture Trustee, the Administrative Agent, each
Non-Conduit Purchaser, each Funding Agent, each APA Bank and each Class B Note Purchaser hereby
covenants and agrees that, prior to the date which is one year and one day after the payment in
full of all outstanding Commercial Paper issued by, or for the benefit of, a CP Conduit Purchaser,
it will not institute against, or join any other Person in instituting against, such CP Conduit
Purchaser (or the Person issuing Commercial Paper for the benefit of such CP Conduit Purchaser) any
involuntary bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or
other similar proceedings under any federal or state bankruptcy or similar law.

          (c) The Issuer, the Administrator, the Indenture Trustee, the Administrative Agent, each
Non-Conduit Purchaser, each CP Conduit Purchaser, each APA Bank, each Funding
Agent and each Class B Note Purchaser hereby covenants and agrees that, prior to the date
which is one year and one day after payment in full of all obligations under each Securitization,
it will not institute against, or join any other Person in instituting against, the Origination
Trust, SPV, Holdings, any other Special Purpose Entity, or any general partner or single member of
any Special Purpose Entity that is a partnership or limited liability company, respectively, any

 

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involuntary bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding or other
proceedings under any federal or state bankruptcy or similar law.

          (d) This covenant shall survive the termination of this Indenture Supplement and the Base
Indenture and the payment of all amounts payable hereunder and thereunder.

          SECTION 12.15. SUBIs. The Issuer, the Administrator, the Administrative Agent, each Non-Conduit Purchaser, each
CP Conduit Purchaser, each APA Bank, each Funding Agent and each Class B Note Purchaser hereby
represents, warrants and covenants that (a) each of the Lease SUBI and the Fleet Receivable SUBI is
a separate series of the Origination Trust as provided in Section 3806(b)(2) of Chapter 38 of Title
12 of the Delaware Code, 12 Del.C. § 3801 et seq., (b)(i) the debts,
liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect
to the Lease SUBI, the Lease SUBI Portfolio or the Fleet Receivable SUBI shall be enforceable
against the Lease SUBI Portfolio or the Fleet Receivable SUBI only, as applicable, and not against
any other SUBI Portfolio or the UTI Portfolio and (ii) the debts, liabilities, obligations and
expenses incurred, contracted for or otherwise existing with respect to any other SUBI (used in
this Section as defined in the Origination Trust Agreement), any other SUBI Portfolio (used in this
Section as defined in the Origination Trust Agreement), the UTI or the UTI Portfolio shall be
enforceable against such other SUBI Portfolio or the UTI Portfolio only, as applicable, and not
against any other SUBI Assets, (c) except to the extent required by law, UTI Assets or SUBI Assets
with respect to any SUBI (other than the Lease SUBI and the Fleet Receivable SUBI) shall not be
subject to the claims, debts, liabilities, expenses or obligations arising from or with respect to
the Lease SUBI or Fleet Receivable SUBI, respectively, in respect of such claim, (d)(i) no creditor
or holder of a claim relating to the Lease SUBI, the Fleet Receivable SUBI or the Lease Receivable
SUBI Portfolio shall be entitled to maintain any action against or recover any assets allocated to
the UTI or the UTI Portfolio or any other SUBI or the assets allocated thereto, and (ii) no
creditor or holder of a claim relating to the UTI, the UTI Portfolio or any SUBI other than the
Lease SUBI or the Fleet Receivable SUBI or any SUBI Assets other than the Lease SUBI Portfolio or
the Fleet Receivables shall be entitled to maintain any action against or recover any assets
allocated to the Lease SUBI or the Fleet Receivable SUBI, and (e) any purchaser, assignee or
pledgee of an interest in the Lease SUBI, the Lease SUBI Certificate, the Fleet Receivable SUBI,
the Lease SUBI Certificate, the Fleet Receivable SUBI Certificate, any other SUBI, any other SUBI
Certificate (used in this Section as defined in the Origination Trust Agreement), the UTI or the
UTI Certificate must, prior to or contemporaneously with the grant of any such assignment, pledge
or security interest, (i) give to the Origination Trust a non-petition covenant substantially
similar to that set forth in Section 6.9 of the Origination Trust Agreement, and (ii) execute an
agreement for the benefit of each holder, assignee or pledgee from time to time of the UTI or UTI
Certificate and any other SUBI or SUBI Certificate to release all claims to the assets of the
Origination Trust allocated to the UTI and each other SUBI Portfolio and in the event that such
release is not given effect, to fully subordinate all claims it may be deemed to have against the
assets of the Origination Trust allocated to the UTI Portfolio and each other SUBI Portfolio.

          SECTION 12.16. Discharge of Indenture. Notwithstanding anything to the contrary contained in the Base Indenture, no discharge of
the Indenture pursuant to Section 12.1(b) of the Base Indenture will be effective as to the
Series 2010-1 Investor Notes without the consent of the Series 2010-1 Required Investor
Noteholders.

 

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          SECTION 12.17. Limited Recourse. (a) Notwithstanding anything to the contrary contained herein, any obligations of each CP
Conduit Purchaser hereunder to any party hereto are solely the corporate obligations of such CP
Conduit Purchaser and shall be payable at such time as funds are received by or are available to
such CP Conduit Purchaser in excess of funds necessary to pay in full all of its outstanding
Commercial Paper and, to the extent funds are not available to pay such obligations, the claims
relating thereto shall not constitute a claim against such CP Conduit Purchaser but shall continue
to accrue. Each party hereto agrees that the payment of any claim (as defined in Section 101 of
Title 11 of the Bankruptcy Code) of any such party against a CP Conduit Purchaser shall be
subordinated to the payment in full of all of its Commercial Paper.

          (b) No recourse under any obligation, covenant or agreement of any CP Conduit Purchaser
contained herein shall be had against any incorporator, stockholder, officer, director, employee or
agent of such CP Conduit Purchaser, its administrative agent, the Funding Agent with respect to
such CP Conduit Purchaser or any of their Affiliates by the enforcement of any assessment or by any
legal or equitable proceeding, by virtue of any statute or otherwise; it being expressly agreed and
understood that this Indenture Supplement is solely a corporate obligation of such CP Conduit
Purchaser individually, and that no personal liability whatever shall attach to or be incurred by
any incorporator, stockholder, officer, director, employee or agent of such CP Conduit Purchaser,
its administrative agent, the Funding Agent with respect to such CP Conduit Purchaser or any of its
Affiliates (solely by virtue of such capacity) or any of them under or by reason of any of the
obligations, covenants or agreements of such CP Conduit Purchaser contained in this Agreement, or
implied therefrom, and that any and all personal liability for breaches by such CP Conduit
Purchaser of any of such obligations, covenants or agreements, either at common law or at equity,
or by statute, rule or regulation, of every such incorporator, stockholder, officer, director,
employee or agent is hereby expressly waived as a condition of and in consideration for the
execution of this Indenture Supplement; provided that the foregoing shall not relieve any
such Person from any liability it might otherwise have as a result of fraudulent actions taken or
omissions made by them. The provisions of this Section 12.17 shall survive termination of this
Indenture Supplement.

          SECTION 12.18. Waiver of Setoff. Notwithstanding any other provision of this Indenture Supplement or any other agreement to
the contrary, all payments to the Purchasers hereunder shall be made without set-off or
counterclaim.

          SECTION 12.19. Conflict of Instructions. In the event the Issuer and the Administrator shall have delivered conflicting instructions
to the Indenture Trustee or the Administrative Agent to take or refrain from taking action
hereunder, the Indenture Trustee or the Administrative Agent, as the case may be, shall follow the
instructions of the Issuer.

          SECTION 12.20. JPMorgan Chase Conflict Waiver. JPMorgan Chase acts as the Funding Agent with respect to one or more of the CP Conduit
Purchasers (collectively, “Conduit”) and as administrative agent for Conduit, as issuing
and paying agent for Conduit’s Commercial Paper, as provider of other backup facilities for
Conduit, and may provide other services or facilities from time to time (the “JPMorgan Chase
Roles”). Each of the parties hereto hereby acknowledges and consents to any and all JPMorgan
Chase Roles, waives any objections it may have to any actual or potential conflict of interest
caused by JPMorgan Chase’s acting as

 

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the Funding Agent with respect to Conduit or as the APA Bank with respect to Conduit and acting as
or maintaining any of the JPMorgan Chase Roles, and agrees that in connection with any JPMorgan
Chase Role, JPMorgan Chase may take, or refrain from taking, any action which it in its discretion
deems appropriate.

          SECTION 12.21. Confidential Information.

          (a) The Indenture Trustee and each Series 2010-1 Investor Noteholder will maintain the
confidentiality of all Confidential Information in accordance with procedures adopted by the
Indenture Trustee or such Series 2010-1 Investor Noteholder in good faith to protect Confidential
Information of third parties delivered to such Person; provided, that such Person may deliver or
disclose Confidential Information to: (i) such Person’s directors, trustees, officers, employees,
agents, attorneys, independent or internal auditors and affiliates who agree to hold confidential
the Confidential Information substantially in accordance with the terms of this Section
12.21; (ii) such Person’s financial advisors and other professional advisors who agree to hold
confidential the Confidential Information substantially in accordance with the terms of this
Section 12.21; (iii) any other Series 2010-1 Investor Noteholder; (iv) any Person of the
type that would, to such Person’s knowledge, be permitted to acquire Series 2010-1 Investor Notes
in accordance with the requirements of the Indenture to which such Person sells or offers to sell
any such Series 2010-1 Note or any part thereof or any participation therein that agrees to hold
confidential the Confidential Information substantially in accordance with this Section
12.21 (or in accordance with such other confidentiality procedures as are acceptable to the
Issuer); (v) any federal or state or other regulatory, governmental or judicial authority having
jurisdiction over such Person; (vi) the National Association of Insurance Commissioners or any
similar organization, or any nationally recognized rating agency that requires access to
information about the investment portfolio of such Person; (vii) such Person’s reinsurers,
liquidity providers, credit providers, investors or potential investors or the directors, trustees,
officers, employees, agents, attorneys, independent or internal auditors, financial advisors or
other professional advisors of such reinsurers, liquidity providers, credit providers, investors or
potential investors who, in each case, agree to hold confidential the Confidential Information
substantially in accordance with this Section 12.21 (or in accordance with such other
confidentiality procedures as are acceptable to the Issuer); (viii) any Person acting as a
placement agent or dealer with respect to any Commercial Paper (provided that any Confidential
Information provided to any such placement agent or dealer does not reveal the identity of PHH or
any of its Affiliates); (ix) any other Person with the consent of the Issuer; or (x) any other
Person to which such delivery or disclosure may be necessary or appropriate (A) to effect
compliance with any law, rule, regulation, statute or order applicable to such Person, (B) in
response to any subpoena or other legal process upon prior notice to the Issuer (unless prohibited
by applicable law, rule, order or decree or other requirement having the force of law), (C) in
connection with any litigation to which such Person is a party upon prior notice to the Issuer
(unless prohibited by applicable law, rule, order or decree or other requirement having the force
of law) or (D) if an Amortization Event has occurred and is continuing, to the extent such Person
may reasonably determine such delivery and disclosure to be necessary or appropriate in the
enforcement or for the protection of the rights and remedies under the Series 2010-1 Investor
Notes, the Indenture or any other Related Document; and provided, further, however, that
delivery to Series 2010-1 Investor Noteholders of any report or information required by the
terms of the Indenture to be provided to Series 2010-1 Investor Noteholders shall not
 be a
violation of

 

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this Section 12.21. Each Series 2010-1 Investor Noteholder agrees, except as
set forth in clauses (v), (vi) and (x) above, that it shall use the Confidential Information for
the sole purpose of making an investment in the Series 2010-1 Investor Notes or administering its
investment in the Series 2010-1 Investor Notes. In the event of any required disclosure of the
Confidential Information by such Series 2010-1 Investor Noteholder, such Series 2010-1 Investor
Noteholder agrees to use reasonable efforts to protect the confidentiality of the Confidential
Information. Each Series 2010-1 Investor Noteholder, by its acceptance of a Series 2010-1 Note,
will be deemed to have agreed to be bound by and to be entitled to the benefits of this Section
12.21.

          (b) For the purposes of this Section 12.21, “Confidential Information” means
information delivered to the Indenture Trustee or any Series 2010-1 Investor Noteholder by or on
behalf of the Issuer in connection with and relating to the transactions contemplated by or
otherwise pursuant to the Indenture and the Transaction Documents; provided, that such term does
not include information that: (i) was publicly known or otherwise known to the Indenture Trustee
or such Series 2010-1 Investor Noteholder prior to the time of such disclosure; (ii) subsequently
becomes publicly known through no act or omission by the Indenture Trustee, any Series 2010-1
Investor Noteholder or any person acting on behalf of the Indenture Trustee or any Series 2010-1
Investor Noteholder; (iii) otherwise is known or becomes known to the Indenture Trustee or any
Series 2010-1 Investor Noteholder other than (x) through disclosure by the Issuer or (y) as a
result of the breach of a fiduciary duty to the Issuer or a contractual duty to the Issuer; or (iv)
is allowed to be treated as non-confidential by consent of the Issuer.

 

 

          IN WITNESS WHEREOF, the Issuer, the Administrator, the Administrative Agent, the
Non-Conduit Purchasers, the CP Conduit Purchasers, the APA Banks, the Funding Agents, the Class B
Note Purchasers and the Indenture Trustee have caused this Indenture Supplement to be duly executed
by their respective officers hereunto duly authorized as of the day and year first above written.

	 	 	 	 	 
	 	CHESAPEAKE FUNDING LLC

 	 
	 	By:  	/s/ Mark E. Johnson
 	 
	 	 	Name:  	Mark E. Johnson 	 
	 	 	Title:  	SVP & Treasurer 	 
	 
	 	PHH VEHICLE MANAGEMENT SERVICES, LLC

 	 
	 	By:  	/s/ Mark E. Johnson
 	 
	 	 	Name:  	Mark E. Johnson 	 
	 	 	Title:  	SVP & Treasurer 	 
	 
	 	JPMORGAN CHASE BANK, N.A., as Administrative Agent

 	 
	 	By:  	/s/ Marquis Gilmore
 	 
	 	 	Name:  	Marquis Gilmore 	 
	 	 	Title:  	Managing Director 	 
	 
	 	THE BANK OF NEW YORK MELLON, as Indenture Trustee

 	 
	 	By:  	/s/ Jared Fischer
 	 
	 	 	Name:  	Jared Fischer 	 
	 	 	Title:  	Senior Associate 	 

K-1

 

	 	 	 	 	 

	 	 	 	 	 
	 	FALCON ASSET SECURITIZATION 

COMPANY LLC, as a CP Conduit Purchaser

 	 
	 	By:  	/s/ Marquis Gilmore
 	 
	 	 	Name:  	Marquis Gilmore 	 
	 	 	Title:  	Managing Director 	 
	 
	 	JPMORGAN CHASE BANK, N.A., as an APA 

Bank and a Funding Agent

 	 
	 	By:  	/s/ Marquis Gilmore
 	 
	 	 	Name:  	Marquis Gilmore 	 
	 	 	Title:  	Managing Director 	 
	 
	 	SARATOGA FUNDING CORP., LLC, as a CP 

Conduit Purchaser

 	 
	 	By:  	/s/ Philip A. Martone
 	 
	 	 	Name:  	Philip A. Martone 	 
	 	 	Title:  	Vice President 	 
	 
	 	DUETSCHE BANK AG, NEW YORK BRANCH, 

as an APA Bank and a Funding Agent

 	 
	 	By:  	/s/ Robert Sheldon
 	 
	 	 	Name:  	ROBERT SHELDON 	 
	 	 	Title:  	Managing Director 	 
	 
	 	BANK OF AMERICA, NATIONAL 

ASSOCIATION, as a Non-CP Conduit Purchaser

 	 
	 	By:  	/s/ J. Matthew Zimmerman
 	 
	 	 	Name:  	J. MATTHEW ZIMMERMAN 	 
	 	 	Title:  	Vice President 	 

K-2

 

	 	 	 	 	 

	 	 	 	 	 
	 	SALISBURY RECEIVABLES COMPANY, as a 

CP Conduit Purchaser

 	 
	 	By:  	/s/ Mary Logan
 	 
	 	 	Name:  	Mary Logan 	 
	 	 	Title:  	Director 	 
	 
	 	BARCLAYS BANK PLC, as an APA Bank and a Funding Agent

 	 
	 	By:  	/s/ Jeffrey Goldberg
 	 
	 	 	Name:  	Jeffrey Goldberg 	 
	 	 	Title:  	Director 	 
	 
	 	THUNDER BAY FUNDING, LLC, as a CP 

Conduit Purchaser

 	 
	 	By:  	/s/ Lorna P. Mendelson
 	 
	 	 	Name:  	Lorna P. Mendelson 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	ROYAL BANK OF CANADA, as an APA Bank 

and a Funding Agent

 	 
	 	By:  	/s/ Robert S. Jones
 	 
	 	 	Name:  	Robert S. Jones 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	 	 
	 	By:  	                                              /s/ Lorna P. Mendelson
 	 
	 	 	Name:  	Lorna P. Mendelson 	 
	 	 	Title:  	Authorized Signatory 	 

K-3

 

	 	 	 	 	 
	 	CRC FUNDING, LLC, as a CP Conduit Purchaser 

c/o Citibank, N.A.,

          As Operating Agent

 	 
	 	By:  	/s/ Steven Vierengel
 	 
	 	 	Name:  	Steven Vierengel 	 
	 	 	Title:  	Director 	 
	 
	 	CITIBANK, N.A., as an APA Bank and a Funding Agent

 	 
	 	By:  	/s/ Steven Vierengel
 	 
	 	 	Name:  	Steven Vierengel 	 
	 	 	Title:  	Director 	 
	 
	 	WINDMILL FUNDING CORPORATION, as a CP 

Conduit Purchaser c/o Citibank, N.A.,

 	 
	 	By:  	/s/ Frank B. Bilotta
 	 
	 	 	Name:  	Frank B. Bilotta 	 
	 	 	Title:  	President 	 
	 
	 	THE ROYAL BANK OF SCOTLAND PLC, as an 

APA Bank and a Funding Agent

By: RBS Securities Inc., as agent

 	 
	 	By:  	/s/ Michael Zappaterrini
 	 
	 	 	Name:  	Michael Zappaterrini 	 
	 	 	Title:  	Managing Director 	 

K-4

 

	 	 	 	 	 
	 	LIBERTY STREET FUNDING LLC, as a CP 

Conduit Purchaser

 	 
	 	By:  	/s/ Frank B. Bilotta
 	 
	 	 	Name:  	Frank B. Bilotta 	 
	 	 	Title:  	President 	 
	 
	 	THE BANK OF NOVA SCOTIA, as an APA Bank 

and a Funding Agent

 	 
	 	By:  	/s/ Darren Ward
 	 
	 	 	Name:  	Darren Ward 	 
	 	 	Title:  	Director 	 
	 
	 	WESTLB AG, NEW YORK BRANCH, as a 

Non-CP Conduit Purchaser

 	 
	 	By:  	/s/ Laura A. Sichiger
 	 
	 	 	Name:  	Laura A. Sichiger 	 
	 	 	Title:  	Executive Director 	 
	 
	 	 	 
	 	By:  	                                              /s/ Liyin Liang
 	 
	 	 	Name:  	Liyin Liang 	 
	 	 	Title:  	Associate Director 	 

K-5

 

	 	 	 	 	 
	 	VARIABLE FUNDING CAPITAL COMPANY 
LLC, as a CP Conduit
Purchaser

By: Wells Fargo Securities, LLC, as attorney-in-fact

 	 
	 	By:  	/s/ Douglas R. Wilson, Sr.
 	 
	 	 	Name:  	Douglas R. Wilson, Sr. 	 
	 	 	Title:  	Director 	 
	 
	 	WELLS FARGO BANK NATIONAL 

ASSOCIATION, as an APA Bank and a Funding Agent

 	 
	 	By:  	/s/ Leah W. Miller
 	 
	 	 	Name:  	Leah W. Miller 	 
	 	 	Title:  	Managing Director 	 
	 
	 	PHH SUB 2, INC., as Class B Note Purchaser

 	 
	 	By:  	/s/ Sandra E. Bell
 	 
	 	 	Name:  	Sandra E. Bell 	 
	 	 	Title:  	Executive Vice President & CFO 	 
	 

K-6

 

SCHEDULE I TO SERIES 2010-1

INDENTURE SUPPLEMENT

LIST OF PURCHASER GROUPS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Maximum	 	 
	 	 	 	 	 	 	 	 	 	 	Purchaser	 	 
	 	 	 	 	 	 	 	 	 	 	Group	 	 
	 	 	 	 	APA Bank	 	 	 	Invested	 	Match
	CP Conduit Purchaser	 	APA Bank	 	Percentage	 	Funding Agent	 	Amount	 	Funding
	 
	Falcon Asset Securitization
	 	JPMorgan Chase Bank, N.A.	 	 	10	%	 	JPMorgan Chase Bank, N.A.	 	$	100,000,000	 	 	 	 	 
	Company LLC
	 	James Glinski	 	 	 	 	 	James Glinski	 	 	 	 	 	 	 	 
	James Glinski
	 	383 Madison Avenue	 	 	 	 	 	383 Madison Avenue	 	 	 	 	 	 	 	 
	383 Madison Avenue
	 	Floor 31	 	 	 	 	 	Floor 31	 	 	 	 	 	 	 	 
	Floor 31
New York, NY 10179
	 	New York, NY 10179	 	 	 	 	 	New York, NY 10179	 	 	 	 	 	 	 	 
	 
	Saratoga Funding Corp., LLC
	 	Deutsche Bank AG,	 	 	10	%	 	Deutsche Bank AG,	 	$	100,000,000	 	 	 	 	 
	Robert Sheldon
	 	New York Branch	 	 	 	 	 	New York Branch	 	 	 	 	 	 	 	 
	60 Wall Street,
	 	Robert Sheldon	 	 	 	 	 	Robert Sheldon	 	 	 	 	 	 	 	 
	3rd Fl
	 	60 Wall Street, 3rd Fl	 	 	 	 	 	60 Wall Street, 3rd Fl	 	 	 	 	 	 	 	 
	New York, NY 10005
	 	New York, NY 10005	 	 	 	 	 	New York, NY 10005	 	 	 	 	 	 	 	 
	 
	Salisbury Receivables
	 	Barclays Bank PLC	 	 	10	%	 	Barclays Bank PLC	 	$	100,000,000	 	 	 	 	 
	Company
	 	Jeffrey Goldberg	 	 	 	 	 	Jeffrey Goldberg	 	 	 	 	 	 	 	 
	Janette Lieu
	 	745 7th Ave., 5th Fl	 	 	 	 	 	745 7th Ave., 5th Fl	 	 	 	 	 	 	 	 
	745 7th Ave., 5th Fl
	 	New York, NY 10019	 	 	 	 	 	New York, NY 10019	 	 	 	 	 	 	 	 
	New York, NY 10019
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Thunder Bay Funding, LLC
	 	Royal Bank of Canada	 	 	10	%	 	Royal Bank of Canada	 	$	100,000,000	 	 	 	 	 
	c/o Global Securitization
	 	Managing Director	 	 	 	 	 	Managing Director	 	 	 	 	 	 	 	 
	Services, LLC Two Little 68
	 	Liberty Plaza, 5th Floor	 	 	 	 	 	Liberty Plaza, 5th Floor	 	 	 	 	 	 	 	 
	South Service Road, Ste 120
	 	New York, NY 10006-1404	 	 	 	 	 	New York, NY 10006-1404	 	 	 	 	 	 	 	 
	Melville, NY 11747
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	cc: RBC Capital Markets	 	 	 	 	 	cc: RBC Capital Markets	 	 	 	 	 	 	 	 
	 
	 	Attn: Conduit Management	 	 	 	 	 	Attn: Conduit Management	 	 	 	 	 	 	 	 
	 
	 	Little Falls Centre II	 	 	 	 	 	Little Falls Centre II	 	 	 	 	 	 	 	 
	 
	 	2751 Centerville Rd.
Suite 212	 	 	 	 	 	2751 Centerville Rd.
Suite 212	 	 	 	 	 	 	 	 
	 
	 	Wilmington, DE 19808	 	 	 	 	 	Wilmington, DE 19808	 	 	 	 	 	 	 	 
	 
	CRC Funding, LLC
	 	Citibank, N.A.	 	 	10	%	 	Citibank, N.A.	 	$	100,000,000	 	 	 	 	 
	Steve Vierengel
	 	Steve Vierengel	 	 	 	 	 	Steve Vierengel	 	 	 	 	 	 	 	 
	388 Greenwich Street, 19th Fl
	 	388 Greenwich Street,	 	 	 	 	 	388 Greenwich Street,	 	 	 	 	 	 	 	 
	New York, NY, 10013
	 	19th Fl	 	 	 	 	 	19th Fl	 	 	 	 	 	 	 	 
	 
	 	New York, NY, 10013	 	 	 	 	 	New York, NY, 10013	 	 	 	 	 	 	 	 
	 
	Windmill Funding
	 	The Royal Bank of Scotland	 	 	10	%	 	The Royal Bank of Scotland	 	$	100,000,000	 	 	 	 	 
	Corporation
	 	Michael Zappaterrini	 	 	 	 	 	Michael Zappaterrini	 	 	 	 	 	 	 	 
	Michael Zappaterrini
	 	600 Washington Blvd	 	 	 	 	 	600 Washington Blvd	 	 	 	 	 	 	 	 
	600 Washington Blvd
	 	Stamford, CT 06901	 	 	 	 	 	Stamford, CT 06901	 	 	 	 	 	 	 	 
	Stamford, CT 06901
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Liberty Street Funding LLC
	 	The Bank of Nova Scotia	 	 	10	%	 	The Bank of Nova Scotia	 	$	100,000,000	 	 	 	 	 
	c/o Global Securitization
	 	Darren Ward	 	 	 	 	 	Darren Ward	 	 	 	 	 	 	 	 
	Services, LLC
	 	One Liberty Plaza,	 	 	 	 	 	One Liberty Plaza, 26th Fl	 	 	 	 	 	 	 	 
	114 West 47th St.
	 	26th Fl	 	 	 	 	 	New York, NY 10006	 	 	 	 	 	 	 	 
	Suite 2310
	 	New York, NY 10006	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	New York, New York 10036
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

2

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Maximum	 	 
	 	 	 	 	 	 	 	 	 	 	Purchaser	 	 
	 	 	 	 	 	 	 	 	 	 	Group	 	 
	 	 	 	 	APA Bank	 	 	 	Invested	 	Match
	CP Conduit Purchaser	 	APA Bank	 	Percentage	 	Funding Agent	 	Amount	 	Funding
	 
	Variable Funding Capital
	 	Wells Fargo Bank,	 	 	10	%	 	Wells Fargo Bank,	 	$	100,000,000	 	 	 	 	 
	Company LLC
	 	National Association	 	 	 	 	 	National Association	 	 	 	 	 	 	 	 
	Leah Miller
	 	Leah Miller	 	 	 	 	 	Leah Miller	 	 	 	 	 	 	 	 
	301 South College Street
	 	301 South College	 	 	 	 	 	301 South College Street	 	 	 	 	 	 	 	 
	MAC D1053-082
	 	Street MAC D1053-082	 	 	 	 	 	MAC D1053-082	 	 	 	 	 	 	 	 
	Charlotte, NC 28202
	 	Charlotte, NC 28202	 	 	 	 	 	Charlotte, NC 28202	 	 	 	 	 	 	 	 

LIST OF NON-CONDUIT PURCHASERS GROUPS

	 	 	 	 	 	 	 
	 	 	 	 	Maximum
	Non- Conduit Purchaser	 	Address	 	Purchaser Group Invested Amount
	 
	Bank of America, National 
	 	Jessica Richmond	 	$	100,000,000	 
	Associations
	 	214 North Tyron Street	 	 	 	 
	
	 	21st Fl	 	 	 	 
	 
	 	Charlotte, NC 28255	 	 	 	 
	 
	WestLB AG, New York Branch
	 	Laura Spichiger	 	$	100,000,000	 
	 
	 	250 Greenwich Street,	 	 	 	 
	 
	 	52nd Fl	 	 	 	 
	 
	 	New York, NY 10007	 	 	 	 

 

SCHEDULE II TO SERIES 2010-1

INDENTURE SUPPLEMENT

LIST OF CLASS B NOTE PURCHASERS

	 	 	 	 	 	 	 
	 	 	 	 	Maximum
	Class B Note Purchaser	 	Address	 	Purchaser Group Invested Amount
	 
	PHH Sub 2, Inc.
	 	3000 Leadenhall Road	 	$	32,967,033	 
	 
	 	Mount Laurel, New Jersey 08054	 	 	 	 
	 
	 	Attention: Mark Johnson	 	 	 	 
	 
	 	facsimile no.: (856) 917-4278	 	 	 	 

 

EXHIBIT A

TO SERIES 2010-1

INDENTURE SUPPLEMENT

CHESAPEAKE FUNDING LLC

SERIES 2010-1 FLOATING RATE ASSET BACKED VARIABLE FUNDING

INVESTOR NOTE, CLASS A

          CHESAPEAKE FUNDING LLC, a limited liability company formed under the laws of the State of
Delaware (the “Issuer”), for value received, hereby promises to pay to
                                        , [as Funding Agent], or registered assigns, the principal sum of (a)
$[                                        ] or, if less, (b) the outstanding Purchaser Group Invested Amount for the
related Purchaser Group, which principal sum shall be payable in the amounts and at the times set
forth in the Indenture described herein, provided, however, that the entire unpaid
principal amount of this Class A Investor Note shall be due on the Final Maturity Date. The Issuer
will pay interest on the outstanding principal amount of this Class A Investor Note in accordance
with the terms of the Indenture. Such interest shall be payable on each Payment Date until the
principal of this Class A Investor Note is paid or made available for payment. The principal amount
of this Class A Investor Note shall be subject to Increases and Decreases on any Business Day as
set forth in the Indenture, and accordingly, such principal amount is subject to prepayment at any
time. Prior to the commencement of the Series 2010-1 Amortization Period, other than as a result of
a Decrease, only interest payments on the outstanding principal amount of the Class A Investor Note
are required to be made to the holder hereof. Beginning on the first Payment Date following the
commencement of the Series 2010-1 Amortization Period, subject to Decreases on any Business Day,
the principal of this Class A Investor 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 Class A Investor Note shall be paid in the manner specified on
the reverse hereof.

          The principal of and interest on this Class A Investor 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 Issuer with respect to this Class A Investor
Note shall be applied first to interest due and payable on this Class A Investor Note as provided
in the Indenture and then to the unpaid principal of this Class A Investor Note. This Class A
Investor Note does not represent an interest in, or an obligation of, PHH Vehicle Management
Services, LLC (“VMS”) or any affiliate of VMS other than the Issuer.

          Reference is made to the further provisions of this Class A Investor Note set forth on the
reverse hereof, which shall have the same effect as though fully set forth on the face of this
Class A Investor Note. Although a summary of certain provisions of the Indenture are set forth
below and on the reverse hereof and made a part hereof, this Class A Investor Note does not
purport to summarize the Indenture and reference is made to the Indenture for information

A-1

 

with respect to the interests, rights, benefits, obligations, proceeds and duties evidenced
hereby and the rights, duties and obligations of the Issuer and the Indenture Trustee. A copy of
the Indenture may be requested from the Indenture Trustee by writing to the Indenture Trustee at:
The Bank of New York Mellon, 101 Barclay Street, Floor 4W, New York, New York 10286 Attention:
Structured Finance Services — Chesapeake Funding, Series 2010-1. 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 Indenture Trustee
whose name appears below by manual signature, this Class A Investor 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.

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

	 	 	 	 	 
	Date: 	CHESAPEAKE FUNDING LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

          This is one of the Class A Investor Notes of a series issued under the
within-mentioned Indenture.

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON, as

Indenture Trustee

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 	 	
Authorized Signature 	 

 

 

	 	 	 	 	 

REVERSE OF CLASS A INVESTOR NOTE

          This Series 2010-1 Floating Rate Asset Backed Variable Funding Investor Note, Class A, is
one of a duly authorized issue of Series 2010-1 Investor Notes of Chesapeake Funding LLC (the
“Issuer”) designated its “Series 2010-1 Floating Rate Asset Backed Variable Funding
Investor Notes, Class A” (herein called the “Class A Investor Notes”), all issued under
(i) an Amended and Restated Base Indenture dated as of December 17, 2008 (such Base Indenture, as
amended or modified, is herein called the “Base Indenture”), between the Issuer and The
Bank of New York Mellon, as indenture trustee (the “Indenture Trustee,” which term
includes any successor Indenture Trustee under the Base Indenture), and (ii) a Series 2010-1
Indenture Supplement dated as of June 1, 2010 (as amended or modified, the “Series 2010-1
Indenture Supplement”) among the Issuer, PHH Vehicle Management Services, LLC, as Administrator, JPMorgan Chase Bank, N.A., as Administrative Agent, the Non-Conduit
Purchasers, CP Conduit Purchaser Groups, Funding Agents and Class B Note Purchasers named
therein, and the Indenture Trustee. The Base Indenture and the Series 2010-1 Indenture Supplement
are referred to herein as the “Indenture.” The Class A Investor Notes are subject to all
terms of the Indenture. All terms used in this Class A Investor Note that are defined in the
Indenture, as supplemented, modified or amended, shall have the meanings assigned to them in or
pursuant to the Indenture, as so supplemented, modified or amended.

          Subject to the subordination provisions of the Indenture, the Class A Investor Notes and the
Class B Investor Notes are and will be equally and ratably secured by the Series 2010-1 Collateral
pledged as security therefor as provided in the Indenture and the Series 2010-1 Indenture
Supplement.

          “Payment Date” means the 7th day of each month, or,
if such date is not a Business Day, the next succeeding Business Day, commencing July 7,
2010.

          “Series 2010-1 Interest Period” means a period commencing on and including a Payment
Date and ending on and including the day preceding the next succeeding Payment Date;
provided, however, that the initial Series 2010-1 Interest Period shall commence on
and includethe Series 2010-1 Initial Funding Date and end on and include July 6, 2010.

          As described above, principal of this Class A Investor Note shall be payable in the amounts
and at the times set forth in the Indenture, provided, however, the entire unpaid
principal amount of this Class A Investor Note shall be due and payable on the Final Maturity Date.
Notwithstanding the foregoing, principal on the Class A Investor Notes will be paid earlier during
the Series 2010-1 Amortization Period or as a result of a Decrease, each as described in the
Indenture. All principal payments on the Class A Investor Notes shall be made pro rata to the Class
A Investor Noteholders entitled thereto.

          Payments of interest on this Class A Investor Note due and payable on each Payment Date,
together with the installment of principal then due, if any, and any payments of principal made on
any Business Day in respect of any Decrease, to the extent not in full payment of this Class A
Investor Note, shall be made by wire transfer to the Holder of record of this Class A Investor
Note (or one or more predecessor Class A Investor Notes) on the Note Register as of

A-1

 

the close of business on each Record Date. Any reduction in the principal amount of this Class
A Investor Note (or any one or more predecessor Class A Investor Notes) effected by any payments
made in accordance with the terms hereof and of the Indenture shall be binding upon all future
Holders of this Class A Investor Note and of any Class A Investor Note issued upon the registration
of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted thereon.

          This Class A Note is nontransferable except in accordance with the Series 2010-1 Indenture
Supplement.

          Each Class A Investor Noteholder, by acceptance of a Class A Investor Note, hereby covenants
and agrees that, prior to the date which is one year and one day after the later of (i) the last
day of the Series 2010-1 Amortization Period and (ii) the last day of the amortization period of
any other Outstanding Series, it will not institute against, or join any other Person in
instituting against, the Issuer any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other similar proceedings under any federal or state bankruptcy or
similar law.

          Each Class A Investor Noteholder, by acceptance of a Class A Investor Note, hereby covenants
and agrees that, prior to the date which is one year and one day after the payment in full of all
outstanding Commercial Paper issued by, or for the benefit of, a CP Conduit Purchaser, it will
not institute against, or join any other Person in instituting against, such CP Conduit Purchaser
(or the Person issuing Commercial Paper for the benefit of such CP Conduit Purchaser) any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other similar
proceedings under any federal or state bankruptcy or similar law.

          Each Class A Investor Noteholder, by acceptance of a Class A Investor Note, hereby covenants
and agrees that, prior to the date which is one year and one day after payment in full of all
obligations under each Securitization, it will not institute against, or join any other Person in
instituting against, the Origination Trust, SPV, Holdings, any other Special Purpose Entity, or
any general partner or single member of any Special Purpose Entity that is a partnership or
limited liability company, respectively, any bankruptcy, reorganization, arrangement, insolvency
or liquidation proceeding or other proceedings under any federal or state bankruptcy or similar
law.

          Each Class A Investor Noteholder, by acceptance of a Class A Investor Note, hereby
represents, warrants and covenants that (a) each of the Lease SUBI and the Fleet Receivable SUBI
is a separate series of the Origination Trust as provided in Section 3806(b)(2) of Chapter 38 of
Title 12 of the Delaware Code, 12 Del.C. § 3801 et seq., (b)(i) the debts,
liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect
to the Lease SUBI, the Lease SUBI Portfolio or the Fleet Receivable SUBI shall be enforceable
against the Lease SUBI Portfolio or the Fleet Receivable SUBI only, as applicable, and not against
any other SUBI Portfolio or the UTI Portfolio and (ii) the debts, liabilities, obligations and
expenses incurred, contracted for or otherwise existing with respect to any other SUBI (used in
this paragraph as defined in the Origination Trust Agreement), any other SUBI Portfolio (used in
this paragraph as defined in the Origination Trust Agreement), the UTI or the UTI Portfolio shall
be enforceable against such other SUBI Portfolio or the UTI Portfolio only, as applicable,

 

 

and not against any other SUBI Assets, (c) except to the extent required by law, UTI Assets or
SUBI Assets with respect to any SUBI (other than the Lease SUBI and the Fleet Receivable SUBI)
shall not be subject to the claims, debts, liabilities, expenses or obligations arising from or
with respect to the Lease SUBI or Fleet Receivable SUBI, respectively, in respect of such claim,
(d)(i) no creditor or holder of a claim relating to the Lease SUBI, the Fleet Receivable SUBI or
the Lease SUBI Portfolio shall be entitled to maintain any action against or recover any assets
allocated to the UTI or the UTI Portfolio or any other SUBI or the assets allocated thereto, and
(ii) no creditor or holder of a claim relating to the UTI, the UTI Portfolio or any SUBI other than
the Lease SUBI or the Fleet Receivable SUBI or any SUBI Assets other than the Lease SUBI Portfolio
or the Fleet Receivables shall be entitled to maintain any action against or recover any assets
allocated to the Lease SUBI or the Fleet Receivable SUBI, and (e) any purchaser, assignee or
pledgee of an interest in the Lease SUBI, the Lease SUBI Certificate, the Fleet Receivable SUBI,
the Lease SUBI Certificate, the Fleet Receivable SUBI Certificate, any other SUBI, any other SUBI
Certificate (used in this Section as defined in the Origination Trust Agreement), the UTI or the
UTI Certificate must, prior to or contemporaneously with the grant of any such assignment, pledge
or security interest, (i) give to the Origination Trust a non-petition covenant substantially
similar to that set forth in Section 6.9 of the Origination Trust Agreement, and (ii) execute an
agreement for the benefit of each holder, assignee or pledgee from time to time of the UTI or UTI
Certificate and any other SUBI or SUBI Certificate to release all claims to the assets of the
Origination Trust allocated to the UTI and each other SUBI Portfolio and in the event that such
release is not given effect, to fully subordinate all claims it may be deemed to have against the
assets of the Origination Trust allocated to the UTI Portfolio and each other SUBI Portfolio.

          It is the intent of the Issuer and each Class A Investor Noteholder that, for Federal, state
and local income and franchise tax purposes, the Class A Investor Notes will evidence indebtedness
of the Issuer secured by the Series 2010-1 Collateral. Each Class A Investor Noteholder, by the
acceptance of this Class A Investor Note, agrees to treat this Class A Investor Note for Federal,
state and local income and franchise tax purposes as indebtedness of the Issuer.

          The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Issuer and the rights of the Holders of the
Class A Investor Notes under the Indenture at any time by the Issuer, the Administrator and the
Indenture Trustee, with the consent of the Series 2010-1 Required Investor Noteholders. The
Indenture also contains provisions permitting the Series 2010-1 Required Investor Noteholders, on
behalf of the Holders of all the Series 2010-1 Investor Notes, to waive compliance by the Issuer
with certain provisions of the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Class A Investor Note (or any one or
more predecessor Class A Investor Notes) shall be conclusive and binding upon such Holder and upon
all future Holders of this Class A Investor Note and of any Class A Investor Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of
such consent or waiver is made upon this Class A Investor Note. The Indenture also permits the
Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without
the consent of Holders of the Series 2010-1 Investor Notes issued thereunder.

 

 

          The term “Issuer” as used in this Class A Investor Note includes any successor to the
Issuer under the Indenture.

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

No reference herein to the Indenture and no provision of this Class A Investor Note or of the
Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional,
to pay the principal of and interest on this Class A Investor Note at the times, place, and rate,
and in the coin or currency herein prescribed, subject to any duty of the Issuer to deduct or
withhold any amounts as required by law, including any applicable U.S. withholding taxes.

 

 

EXHIBIT B

TO SERIES 2010-1

INDENTURE SUPPLEMENT

CHESAPEAKE FUNDING LLC

SERIES 2010-1 FLOATING RATE ASSET BACKED INVESTOR NOTE, CLASS B

          CHESAPEAKE FUNDING LLC, a limited liability company formed under the laws of the State of
Delaware (the “Issuer”), for value received, hereby promises to pay to
                                        , or registered assigns, the principal sum of [              
      ] Dollars, which amount shall
be payable in the amounts and at the times set forth in the Indenture described herein, provided,
however, that the entire unpaid principal amount of this Class B Investor Note shall be due on the
Final Maturity Date. However, principal with respect to the Class B Investor Notes may be paid
earlier under certain limited circumstances described in the Indenture. The Issuer will pay
interest on this Class B Investor Note for each Series 2010-2 Interest Period, in accordance with
the terms of the Indenture, at the Class B Note Rate for such Series 2010-1 Interest Period. Such
interest shall be payable on each Payment Date until the principal of this Class B Investor Note is
paid or made available for payment, to the extent funds are available in the Series 2010-1
Distribution Account in respect of the Class B Monthly Interest.

          The principal of and interest on this Class B Investor 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 Issuer with respect to this Class B Investor
Note shall be applied first to interest due and payable on this Class B Investor Note as provided
in the Indenture and then to the unpaid principal of this Class B Investor Note. This Class B
Investor Note does not represent an interest in, or an obligation of, PHH Vehicle Management
Services, LLC (“VMS”) or any affiliate of VMS other than the Issuer.

          Reference is made to the further provisions of this Class B Investor Note set forth on the
reverse hereof, which shall have the same effect as though fully set forth on the face of this
Class B Investor Note. Although a summary of certain provisions of the Indenture are set forth
below and on the reverse hereof and made a part hereof, this Class B Investor 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 Issuer and the Indenture Trustee. A copy of the
Indenture may be requested from the Indenture Trustee by writing to the Indenture Trustee at: The
Bank of New York Mellon, 101 Barclay Street, Floor 4W, New York, New York 10286 Attention:
Structured Finance Services — Chesapeake Funding, Series 2010-1. To the extent not defined
herein, the capitalized terms used herein have the meanings ascribed to them in the Indenture.

B-1

 

          Unless the certificate of authentication hereon has been executed by the Indenture
Trustee whose name appears below by manual signature, this Class B Investor 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.

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

	 	 	 	 	 
	Date: 	CHESAPEAKE FUNDING LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

          This is one of the Class B Investor Notes of a series issued under the
within-mentioned Indenture.

	 	 	 	 	 
	 	
THE BANK OF NEW YORK MELLON, as

Indenture Trustee

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 	 	Authorized Signature 	 

 

 

	 	 	 	 	 

REVERSE OF CLASS B INVESTOR NOTE

          This Series 2010-1 Floating Rate Asset Backed Investor Note, Class B, is one of a duly
authorized issue of Series 2010-1 Investor Notes of Chesapeake Funding LLC (the “Issuer”)
designated its “Series 2010-1 Floating Rate Asset Backed Investor Notes, Class B” (herein called
the “Class B Investor Notes”), all issued under (i) an Amended and Restated Base Indenture
dated as of December 17, 2008 (such Base Indenture, as amended or modified, is herein called the
“Base Indenture”), between the Issuer and The Bank of New York Mellon, as indenture trustee
(the “Indenture Trustee,” which term includes any successor Indenture Trustee under the
Base Indenture), and (ii) a Series 2010-1 Indenture Supplement dated as of June 1, 2010 (as amended
or modified, the “Series 2010-1 Indenture Supplement”) among the Issuer, PHH Vehicle
Management Services, LLC, as Administrator, JPMorgan Chase Bank, N.A., as Administrative Agent, the
Non-Conduit Purchasers, CP Conduit Purchaser Groups, Funding Agents and Class B Note Purchasers
named therein, and the Indenture Trustee. The Base Indenture and the Series 2010-1 Indenture
Supplement are referred to herein as the “Indenture.” The Class B Investor Notes are
subject to all terms of the Indenture. All terms used in this Class B Investor Note that are
defined in the Indenture, as supplemented, modified or amended, shall have the meanings assigned to
them in or pursuant to the Indenture, as so supplemented, modified or amended.

          Subject to the subordination provisions of the Indenture, the Class A Investor Notes and the
Class B Investor Notes are and will be equally and ratably secured by the Series 2010-1 Collateral
pledged as security therefor as provided in the Indenture and the Series 2010-1 Indenture
Supplement.

          “Payment Date” means the 7th day of each month, or,
if such date is not a Business Day, the next succeeding Business Day, commencing July 7,
2010.

          “Series 2010-1 Interest Period” means a period commencing on and including a Payment
Date and ending on and including the day preceding the next succeeding Payment Date;
provided, however, that the initial Series 2010-1 Interest Period shall commence
on and include the Series 2010-1 Initial Funding Date and end on and include July 6, 2010.

          As described above, principal of this Class B Investor Note shall be payable in the amounts
and at the times set forth in the Indenture, provided, however, the entire unpaid
principal amount of this Class B Investor Note shall be due and payable on the Final Maturity
Date. All principal payments on the Class B Investor Notes shall be made pro rata to the Class B
Investor Noteholders entitled thereto.

          Payments of interest on this Class B Investor Note due and payable on each Payment
Date, together with the installment of principal then due, if any, shall be made by wire transfer
to the Holder of record of this Class B Investor Note (or one or more predecessor Class B Investor
Notes) on the Note Register as of the close of business on each Record Date. Any reduction in the
principal amount of this Class B Investor Note (or any one or more predecessor Class B Investor
Notes) effected by any payments made in accordance with the terms hereof and of the Indenture
shall be binding upon all future Holders of this Class B Investor Note and of any

B-4

 

Class B Investor Note issued upon the registration of transfer hereof or in exchange hereof
or in lieu hereof, whether or not noted thereon.

          This Class B Note is nontransferable except in accordance with the Series 2010-1 Indenture
Supplement.

          Each Class B Investor Noteholder, by acceptance of a Class B Investor Note, hereby covenants
and agrees that, prior to the date which is one year and one day after the later of (i) the last
day of the Series 2010-1 Amortization Period and (ii) the last day of the amortization period of
any other Outstanding Series, it will not institute against, or join any other Person in
instituting against, the Issuer any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other similar proceedings under any federal or state bankruptcy or
similar law.

          Each Class B Investor Noteholder, by acceptance of a Class B Investor Note, hereby covenants
and agrees that, prior to the date which is one year and one day after the payment in full of all
outstanding Commercial Paper issued by, or for the benefit of, a CP Conduit Purchaser, it will
not institute against, or join any other Person in instituting against, such CP Conduit Purchaser
(or the Person issuing Commercial Paper for the benefit of such CP Conduit Purchaser) any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other similar
proceedings under any federal or state bankruptcy or similar law.

          Each Class B Investor Noteholder, by acceptance of a Class B Investor Note, hereby covenants
and agrees that, prior to the date which is one year and one day after payment in full of all
obligations under each Securitization, it will not institute against, or join any other Person in
instituting against, the Origination Trust, SPV, Holdings, any other Special Purpose Entity, or
any general partner or single member of any Special Purpose Entity that is a partnership or
limited liability company, respectively, any bankruptcy, reorganization, arrangement, insolvency
or liquidation proceeding or other proceedings under any federal or state bankruptcy or similar
law.

          Each Class B Investor Noteholder, by acceptance of a Class B Investor Note, hereby represents,
warrants and covenants that (a) each of the Lease SUBI and the Fleet Receivable SUBI is a separate
series of the Origination Trust as provided in Section 3806(b)(2) of Chapter 38 of Title 12 of the
Delaware Code, 12 Del.C. § 3801 et seq., (b)(i) the debts, liabilities, obligations
and expenses incurred, contracted for or otherwise existing with respect to the Lease SUBI, the
Lease SUBI Portfolio or the Fleet Receivable SUBI shall be enforceable against the Lease SUBI
Portfolio or the Fleet Receivable SUBI only, as applicable, and not against any other SUBI
Portfolio or the UTI Portfolio and (ii) the debts, liabilities, obligations and expenses incurred,
contracted for or otherwise existing with respect to any other SUBI (used in this paragraph as
defined in the Origination Trust Agreement), any other SUBI Portfolio (used in this paragraph as
defined in the Origination Trust Agreement), the UTI or the UTI Portfolio shall be enforceable
against such other SUBI Portfolio or the UTI Portfolio only, as applicable, and not against any
other SUBI Assets, (c) except to the extent required by law, UTI Assets or SUBI Assets with respect
to any SUBI (other than the Lease SUBI and the Fleet Receivable SUBI) shall not be subject to the
claims, debts, liabilities, expenses or obligations arising from or with respect to the Lease SUBI
or Fleet Receivable SUBI, respectively, in respect of such claim, (d)(i) no creditor or holder of a
claim relating to the Lease SUBI, the Fleet Receivable SUBI or the Lease SUBI Portfolio shall be
entitled to maintain any action against or recover any assets

B-5

 

allocated to the UTI or the UTI Portfolio or any other SUBI or the assets allocated
thereto, and (ii) no creditor or holder of a claim relating to the UTI, the UTI Portfolio or any
SUBI other than the Lease SUBI or the Fleet Receivable SUBI or any SUBI Assets other than the
Lease SUBI Portfolio or the Fleet Receivables shall be entitled to maintain any action against or
recover any assets allocated to the Lease SUBI or the Fleet Receivable SUBI, and (e) any
purchaser, assignee or pledgee of an interest in the Lease SUBI, the Lease SUBI Certificate, the
Fleet Receivable SUBI, the Lease SUBI Certificate, the Fleet Receivable SUBI Certificate, any
other SUBI, any other SUBI Certificate (used in this Section as defined in the Origination Trust
Agreement), the UTI or the UTI Certificate must, prior to or contemporaneously with the grant of
any such assignment, pledge or security interest, (i) give to the Origination Trust a non-petition
covenant substantially similar to that set forth in Section 6.9 of the Origination Trust
Agreement, and (ii) execute an agreement for the benefit of each holder, assignee or pledgee from
time to time of the UTI or UTI Certificate and any other SUBI or SUBI Certificate to release all
claims to the assets of the Origination Trust allocated to the UTI and each other SUBI Portfolio
and in the event that such release is not given effect, to fully subordinate all claims it may be
deemed to have against the assets of the Origination Trust allocated to the UTI Portfolio and each
other SUBI Portfolio.

          It is the intent of the Issuer and each Class B Investor Noteholder that, for Federal,
state and local income and franchise tax purposes, the Class B Investor Notes will evidence
indebtedness of the Issuer secured by the Series 2010-1 Collateral. Each Class B Investor
Noteholder, by the acceptance of this Class B Investor Note, agrees to treat this Class B Investor
Note for Federal, state and local income and franchise tax purposes as indebtedness of the Issuer.

          The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Issuer and the rights of the Holders of the
Class B Investor Notes under the Indenture at any time by the Issuer, the Administrator and the
Indenture Trustee, with the consent of the Series 2010-1 Required Investor Noteholders. The
Indenture also contains provisions permitting the Series 2010-1 Required Investor Noteholders, on
behalf of the Holders of all the Series 2010-1 Investor Notes, to waive compliance by the Issuer
with certain provisions of the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Class B Investor Note (or any one or
more predecessor Class B Investor Notes) shall be conclusive and binding upon such Holder and upon
all future Holders of this Class B Investor Note and of any Class B Investor Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of
such consent or waiver is made upon this Class B Investor Note. The Indenture also permits the
Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without
the consent of Holders of the Series 2010-1 Investor Notes issued thereunder.

          The term “Issuer” as used in this Class B Investor Note includes any successor to the Issuer
under the Indenture.

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

          No reference herein to the Indenture and no provision of this Class B Investor Note
or of the Indenture shall alter or impair the obligation of the Issuer, which is absolute and

B-6

 

unconditional, to pay the principal of and interest on this Class B Investor Note at the
times, place, and rate, and in the coin or currency herein prescribed, subject to any duty of the
Issuer to deduct or withhold any amounts as required by law, including any applicable U.S.
withholding taxes.

B-7

 

EXHIBIT C

TO SERIES 2010-1

INDENTURE SUPPLEMENT

FORM OF NOTICE OF INCREASE

                                        ,           

JPMorgan Chase Bank, N.A

10 South Dearborn, 13th Floor

Chicago, Illinois 6067060 Wall Street

Ladies and Gentlemen:

          Reference is hereby made to the Series 2010-1 Indenture Supplement dated as of June
1, 2010 (as amended, modified, restated or supplemented, the “Indenture Supplement”)
among Chesapeake Funding LLC (the “Issuer”), PHH Vehicle Management Services, LLC, as
Administrator, JPMorgan Chase Bank, N.A., as Administrative Agent, the Non-Conduit Purchasers, CP
Conduit Purchaser Groups, Funding Agents and Class B Note Purchasers named therein and The Bank
of New York Mellon, as Indenture Trustee (the “Indenture Trustee”), to the Amended and
Restated Base Indenture dated as of December 17, 2008 between the Issuer and the Indenture
Trustee. Capitalized terms used in this Notice of Increase and not otherwise defined herein shall
have the meanings assigned thereto in the Indenture Supplement.

          This letter constitutes the notice required in connection with [the Series 2010-1 Initial
Funding Date] [any Increase] pursuant to Section 2.3(a) of the Indenture Supplement.

          The Issuer hereby requests that [the initial funding of the Class A Investor Notes] [an
Increase] be made by each Purchaser Group on                                     ,            in the aggregate amount equal to
its Commitment Percentage of $                                   .

          The Issuer hereby represents and warrants as of [the Series 2010-1 Initial Funding Date] [the
date of such Increase] after giving effect thereto, the conditions set forth in Sections 2.3(a)
and (c) of the Indenture Supplement with respect to [the initial funding of the Class A Investor
Notes] [such Increase] have been satisfied.

C-1

 

          IN WITNESS WHEREOF, the undersigned has caused this Increase Notice to be executed by its
duly authorized officer as of the date first above written.

	 	 	 	 	 
	 	

CHESAPEAKE FUNDING LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

cc: The Bank of New York Mellon, as Indenture Trustee

C-2

 

EXHIBIT D

TO SERIES 2010-1

INDENTURE SUPPLEMENT

SCHEDULE

to the

MASTER AGREEMENT

(Multicurrency-Cross Border)

dated as of [          ],
20[     ]

between

[                    ]

(“Party A”)

and

Chesapeake Funding LLC,

a limited liability company organized under the laws of the State of Delaware

(“Party B”)

D-1 

 

Definitions

     The 2006 ISDA Definitions (the “Definitions”) are incorporated into this Agreement and shall
form part of this Agreement. In the event of any inconsistency among or between any of the
following documents, the relevant document first listed below shall govern: (i) a Confirmation and
any relevant definitions incorporated into such Confirmation; (ii) this Schedule and any relevant
definitions incorporated herein; (iii) Sections 1 to 14 of this Agreement; and (iv) the
Definitions.

     Capitalized terms used herein but not defined in this Agreement or the Definitions shall have
the meanings specified in that certain Amended and Related Base Indenture, dated as of December 17,
2008, by and among Party B and The Bank of New York Mellon, as Indenture Trustee (the “Indenture”).

     For the avoidance of doubt, references herein to a particular “Section” of this Agreement are
references to the corresponding sections of the Master Agreement.

Part 1. Termination Provisions

In this Agreement:

     (a) “Specified Entity” means in relation to Party A for the purpose of:

	 	 	 

	Section 5(a)(v),

	 	Not Applicable
	Section 5(a)(vi),

	 	Not Applicable
	Section 5(a)(vii),

	 	Not Applicable
	Section 5(b)(iv),

	 	Not Applicable

     in relation to Party B for the purpose of:

	 	 	 

	Section 5(a)(v),

	 	Not Applicable
	Section 5(a)(vi),

	 	Not Applicable
	Section 5(a)(vii),

	 	Not Applicable
	Section 5(b)(iv),

	 	Not Applicable

     (b) “Specified Transaction” will have the meaning specified in Section 14 of this Agreement.

     (c) Application of Events of Default. The provisions of Section 5(a) of this
Agreement will apply to Party A and Party B as follows:

	 	 	 	 	 	 	 
	 	 	Section 5(a)	 	Party A	 	Party B
	(i)

	 	“Failure to Pay or Deliver”
	 	Applicable (except as provided
below in Part 1(d)(ii)).
	 	Applicable.
	(ii)

	 	“Breach of Agreement”
	 	Applicable.
	 	Not Applicable.

D-2 

 

	 	 	 	 	 	 	 
	 	 	Section 5(a)	 	Party A	 	Party B
	(iii)

	 	“Credit Support Default”
	 	Applicable (except as provided below in Part 1(d)(ii)).
	 	Applicable (but only to the extent described below in Part 1(d)(i)).
	(iv)

	 	“Misrepresentation”
	 	Applicable.
	 	Not Applicable.
	(v)

	 	“Default Under Specified
	 	[Not] Applicable.
	 	Not Applicable.
	 

	 	Transaction”	 	 	 	 
	(vi)

	 	“Cross-Default”
	 	Applicable.
	 	Not Applicable.
	(vii)

	 	“Bankruptcy”
	 	Applicable.
	 	Applicable (but only to the extent described below in Part 1(f)).
	(viii)

	 	“Merger Without Assumption”
	 	Applicable.
	 	Applicable.

     (d) (i) Section 5(a)(iii)(1) will apply to Party B in respect of Party B’s obligations under
Paragraphs 3(b) and 8(d) of that certain Credit Support Annex, dated as of the date hereof,
attached hereto and made a part hereof between Party A and Party B (as from time to time amended,
supplemented or replaced, the “Credit Support Annex”).

          (ii) Notwithstanding Sections 5(a)(i) and 5(a)(iii), any failure by Party A to comply with or
perform any obligation to be complied with or performed by Party A under the Credit Support Annex
shall not be an Event of Default unless (A)(i) a Moody’s Second Trigger Event has occurred and has
continued for at least 30 Local Business Days, (ii) Party A has failed to Transfer sufficient
Eligible Credit Support to ensure that the Delivery Amount calculated under paragraph (2) of the
definition of “Delivery Amount” in Paragraph 13 of the Credit Support Annex is zero (unless, in
any such instance, the applicable Delivery Amount is less than the Minimum Transfer Amount) and
(iii) such failure is not remedied on or before the third Local Business Day after notice of such
failure is given to Party A, or (B)(i) an S&P Substitution Event has occurred and continued for at
least 60 calendar days, (ii) Party A has failed to Transfer sufficient Eligible Credit Support to
ensure that the Delivery Amount calculated under paragraph
(1) of the definition of “Delivery Amount” in Paragraph 13 of the Credit Support Annex is zero
(unless, in any such instance, the applicable Delivery Amount is less than the Minimum Transfer
Amount), and (iii) such failure is not remedied on or before the third Local Business Day after
notice of such failure is given to Party A.

     (e) With respect to Section 5(a)(vi):

“Specified Indebtedness” will have the meaning specified in Section 14, provided
that Specified Indebtedness shall not include deposits received in the course of a party’s
ordinary banking business.

“Threshold Amount” means, with respect to Party A, 3% of the Shareholders’ Equity of the
applicable Relevant Entity, provided that if the Relevant Entity is Party A, then
“Threshold Amount” means 3% of the Shareholders’ Equity of [                                        ].

D-3 

 

“Shareholders’ Equity” means [with respect to an entity, at any time, (1) if the
Relevant Entity is a national banking association, the “Total Equity Capital” of the
Relevant Entity (as shown in the most recently filed FFIEC Consolidated Report of Condition
for Insured Commercial and State-Chartered Savings Banks (“Call Report”) Schedule RC-
Balance Sheet of such entity) or (2) for any other entity, the sum (as shown in the most
recent annual audited financial statements of such entity) of (i) its capital stock
(including preferred stock) outstanding, taken at par value, (ii) its capital surplus and
(iii) its retained earnings, minus (iv) treasury stock, each to be determined in accordance
with generally accepted accounting principles] [an amount equal to [                    ]’s total
assets minus its total liabilities as reflected on [                    ]’s most recent audited
financial statements].

     (f) With respect to Party B only (and the related Confirmations only), the provisions of
Section 5(a)(vii) clauses (2), (7) and (9) will not be applicable as an Event of Default; clause
(3) will not apply to Party B to the extent it refers to any assignment, arrangement or
composition that is effected by or pursuant to the Transaction Documents; clause (4) will not
apply to Party B to the extent that it refers to proceedings or petitions instituted or
presented by Party A or any of its Affiliates; clause (6) will not apply to Party B to the
extent that it refers to
(i) any appointment that is contemplated or effected by the Transaction Documents or (ii) any
appointment that Party B has not become subject to; and clause (8) will not apply to Party B to
the extent that it applies to Section 5(a)(vii)(2), (3), (4), (6) and (7) except to the extent
that such provisions are not disapplied with respect to Party B.

     (g) Application of Termination Events. The provisions of Section 5(b) of this Agreement
will apply to Party A and Party B as follows:

	 	 	 	 	 	 	 
	 	 	Section 5(b)	 	Party A	 	Party B
	(i)

	 	“Illegality”
	 	Applicable.
	 	Applicable.
	(ii)

	 	“Tax Event”
	 	Applicable.
	 	Applicable.
	(iii)

	 	“Tax Event Upon Merger”
	 	Applicable.
	 	Applicable.
	(iv)

	 	“Credit Event Upon Merger”
	 	Not Applicable.
	 	Not Applicable.

     (h) Section 5(b)(ii) will apply, provided that the words “(x) any action taken by a taxing
authority, or brought in a court of competent jurisdiction, on or after the date on which a
Transaction is entered into (regardless of whether such action is taken or brought with respect
to a party to this Agreement) or (y)” shall be deleted.

     (i) Notwithstanding Section 5(b)(iii), Party A shall not be entitled to designate an
Early Termination Date by reason of a Tax Event Upon Merger in respect of which it is the
Affected Party.

     (j) Section 6(b)(ii) will apply, provided that the words “or if a Tax Event Upon Merger
occurs and the Burdened Party is the Affected Party,” shall be deleted.

     (k) The “Automatic Early Termination” provision of Section 6(a) will not apply to either
Party A or to Party B.

D-4 

 

     (l) Payments on Early Termination. For the purpose of Section 6(e) of this Agreement:

Market Quotation will apply and the Second Method will apply; provided,
however, if an Early Termination Date is designated in respect of (A) an Event
ofDefault with respect to which Party A is a Defaulting Party or (B) an Additional
Termination Event with respect to which Party A is the sole Affected Party, notwithstanding
Section 6 of this Agreement, the following amendment to the Agreement set forth in
paragraphs (i) to (vii) below shall apply:

     (i) The definition of “Market Quotation” shall be deleted in its entirety
and replaced with the following:

“Market Quotation” means, with respect to one or more Terminated Transactions, a Firm Offer
which is (1) made by an Eligible Replacement, (2) for an amount that would be paid to Party
B (expressed as a negative number) or by Party B (expressed as a positive number) in
consideration of an agreement between Party B and such Eligible Replacement to enter into a
transaction (the “Replacement Transaction”) that would have the effect of preserving for
Party B the economic equivalent of any payment or delivery (whether the underlying
obligation was absolute or contingent and assuming the satisfaction of each applicable
condition precedent) by the parties under Section 2(a)(i) in respect of such Terminated
Transaction or group of Terminated Transactions that would, but for the occurrence of the
relevant Early Termination Date, have been required after that date, (3) made on the basis
that Unpaid Amounts in respect of the Terminated Transaction or group of Terminated
Transactions are to be excluded but, without limitation, any payment or delivery that
would, but for the relevant Early Termination Date, have been required (assuming
satisfaction of each applicable condition precedent) after that Early Termination Date is
to be included and (4) made in respect of a Replacement Transaction with terms that are, in
all material respects, no less beneficial for Party B than those of this Agreement (save
for the exclusion of provisions relating to Transactions that are not Terminated
Transactions), as determined by Party B.

     (ii) The definition of “Settlement Amount” shall be deleted in its entirety
and replaced with the following:

“Settlement Amount” means, with respect to any Early Termination Date, an amount (as
determined by Party B) equal to the Termination Currency Equivalent of the amount (whether
positive or negative) of any Market Quotation for the relevant Terminated Transaction or
group of Terminated Transactions that is accepted by Party B so as to become legally
binding, provided that:

(A) If, on or before the Early Termination Date, no Market Quotation for the
relevant Terminated Transaction or group of Terminated Transactions has been
accepted by Party B so as to become legally binding and one or more Market
Quotations have been made and remain

D-5 

 

capable of becoming legally binding upon acceptance, the Settlement Amount shall
equal the Termination Currency Equivalent of the amount (whether positive or negative) of
the lowest of such Market Quotations (for the avoidance of doubt, (i) a Market Quotation
expressed as a negative number is lower than a Market Quotation expressed as a positive
number, and (ii) the lower of two Market Quotations expressed as negative numbers is the
one with the larger absolute value); and

(B) If, on the Early Termination Date, no Market Quotation for the relevant Terminated
Transaction or group of Terminated Transactions is accepted by Party B so as to become
legally binding on or before the Early Termination Date, and no Market Quotations have
been made and remain capable of becoming legally binding upon acceptance, the Settlement
Amount shall equal Party B’s Loss (whether positive or negative and without reference to
any Unpaid Amounts) for the relevant Terminated Transaction or group of Terminated
Transactions.

     (iii) In determining whether or not a Firm Offer satisfies the condition in subparagraph
(4) of Market Quotation, Party B shall act in a commercially reasonable manner.

     (iv) At any time on or before the Early Termination Date at which two or more Market
Quotations remain capable of becoming legally binding upon acceptance, Party B shall be entitled
to accept only the lowest of such Market Quotations (for the avoidance of doubt, (i) a Market
Quotation expressed as a negative number is lower than a Market Quotation expressed as a positive
number, and (ii) the lower of two Market Quotations expressed as negative numbers is the one with
the larger absolute value).

     (v) Party B will be deemed to have discharged its obligations to obtain Market Quotations
above if it requests Party A to obtain Market Quotations, where such request is made in writing
within two Local Business Days after the day on which the Early Termination Date is designated.

     (vi) If Party B requests Party A in writing to obtain Market Quotations, Party A shall use
its reasonable efforts to do so before the Early Termination Date.

     (vii) If the Settlement Amount is a negative number, Section 6(e)(i)(3) of this
Agreement shall be deleted in its entirety and replaced with the following:

“Second Method and Market Quotation. If Second Method and Market Quotation apply, (1) Party B
shall pay to Party A an amount equal to the absolute value of the Settlement Amount in respect of
the Terminated Transactions, (2) Party B shall pay to Party A the Termination Currency Equivalent
of the Unpaid Amounts owing to Party A and (3) Party A shall pay to Party B the Termination
Currency Equivalent of the Unpaid Amounts owing to Party B; provided that, (i)

D-6 

 

the amounts payable under (2) and (3) shall be subject to netting in accordance with
Section 2(c) of this Agreement and (ii) notwithstanding any other provision of this Agreement,
any amount payable by Party A under (3) shall not be netted-off against any amount payable by
Party B under (1).”

     (m) “Termination Currency” means United States Dollars.

     (n) Additional Termination Event will apply. Each of the following events shall constitute an
Additional Termination Event hereunder:

     (i) An amendment and/or supplement to any Transaction Document is made without the prior
written consent of Party A if such consent is required under such Transaction Documents and
such amendment and/or supplement would materially and adversely affect Party A. For purposes
of Section 6 of this Agreement, Party B shall be the sole Affected Party.

     (ii) [Reserved].

     (iii) The Investor Notes shall be accelerated and/or Collateral shall be liquidated in
accordance with the Transaction Documents following an “Event of Default” thereunder, or
there shall occur an optional redemption or other prepayment of the Investor Notes in full
prior to their stated maturity dates. For purposes of Section 6 of this Agreement, Party B
shall be the sole Affected Party and the Early Termination Date (in the case of an optional
redemption or prepayment) shall occur not earlier than the third Local Business Day prior to
the applicable redemption or prepayment date.

     (iv) Following an S&P Substitution Event, each Relevant Entity shall
fail to take action that satisfies Part 5(l)(A) hereof within the time period specified in
Part 5(l)(A) (provided that the occurrence of any such Additional Termination Event
shall have no effect on Party A’s duty to perform its obligations hereunder prior to actual
termination of this Agreement), in which event Party A shall be the sole Affected Party.

     (v) Party A fails to comply with or perform any obligation to be complied with or
performed by Party A in accordance with the Credit Support Annex (other than any such
obligation that applies to Party A solely because an S&P Substitution Event has occurred) and
either (x) the Moody’s Second Trigger Event has not occurred or (y) the Moody’s Second Trigger
Event has occurred but has been continuing for less than 30 Business Days. For purposes of
Section 6 of this Agreement, Party A shall be the sole Affected Party.

     (vi) A Moody’s Second Trigger Event has occurred and has been continuing for at
least 30 Local Business Days, and (i) at least one Eligible Replacement has made a Firm Offer
to be the Transferee under Part 5(k)(ii) below (but only if such Firm Offer then remains
capable of becoming legally binding
upon acceptance) and/or (ii) at least one Eligible Replacement has made a Firm Offer
that would, assuming the occurrence of an Early Termination Date, qualify

D-7 

 

as a Market Quotation (on the basis that paragraphs (i) and (iii) in Part
1(l) above apply) and which remains capable of becoming legally binding upon
acceptance. For purposes of Section 6 of this Agreement, Party A shall be the sole
Affected Party.

     (o) Party A shall be responsible for any costs reasonably incurred by Party B in
connection with any assignment of this Agreement made by Party A by reason of any S&P
Substitution Event, Moody’s First Trigger Event or Moody’s Second Trigger Event having
occurred.

Part 2. Tax Representations.

(a) Payer Tax Representations. For the purpose of Section 3(e) of this Agreement, Party A
and Party B make the following representation:

It is not required by any applicable law, as modified by the practice of any
relevant governmental revenue authority, of any Relevant Jurisdiction to make any
deduction or withholding for or on account of any Tax from any payment (other than
interest under Section 2(e), 6(d)(ii), or 6(e) of this Agreement) to be made by it
to the other party under this Agreement. In making this representation, it may rely
on (i) the accuracy of any representations made by the other party pursuant to
Section 3(f) of this Agreement, (ii) the satisfaction of the agreement contained in
Section 4(a)(i) or 4(a)(iii) of this Agreement, and the accuracy and effectiveness
of any document provided by the other party pursuant to Section 4(a)(i) or 4(a)(iii)
of this Agreement, and (iii) the satisfaction of the agreement of the other party
contained in Section 4(d) of this Agreement; provided that it shall not be a
breach of this representation where reliance is placed on clause (ii) and the other
party does not deliver a form or document under Section 4(a)(iii) by reason of
material prejudice to its legal or commercial position.

     (b) Payee Tax Representations. For the purposes of Section 3(f) of this Agreement, Party A
and Party B make the following representations:

     (i) The following representation applies to Party A: Party A is [a national
banking association organized under the laws of the United States and its United
States federal taxpayer identification number is [_________]].

     (ii) The following representation applies to Party B: Party B is a limited
liability company organized under the laws of the State of Delaware, it is a U.S.
person for United States federal income tax purposes and its United States federal
taxpayer identification number is 51-0391968.

Part 3. Agreement to Deliver Documents.

     For the purpose of Section 4(a)(i) and (ii) of this Agreement, each Party agrees to
deliver the following documents as applicable:

     (a) Tax
forms, documents or certificates to be delivered are:

D-8 

 

Party B agrees to complete, execute, and deliver to Party A a complete, valid
and accurate United States Internal Revenue Service Form W-9, or any successor to
such form, and any required attachments thereto (i) upon execution and delivery of
this Agreement, (ii) promptly upon reasonable demand by Party A, and (iii) promptly
upon learning that any such form(s) previously provided by Party B has become
obsolete or is incorrect.

     (b) Other documents to be delivered are:

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Covered by
	Party required to	 	 	 	Date by which to be	 	Section 3(d)
	deliver document	 	Form/Document/Certificate	 	delivered	 	Representation
	Party A/Party B

	 	Credit Support Document, if
any, specified in Part 4 hereof,
such Credit Support Document
being duly executed if
required.
	 	Upon execution and
delivery of this
Agreement
	 	Yes
	 
	 	 	 	 	 	 
	Party A

	 	Incumbency certificate or other
documents evidencing the
authority of the persons
executing this Agreement and
the related Confirmation[s] on
Party A’s behalf
	 	On the Closing Date
	 	Yes
	 
	 	 	 	 	 	 
	Party B

	 	Monthly Servicing Report
setting forth the information
specified in Section 8.2 of the
Indenture
	 	To be made
available to Party B
on each
Determination Date
	 	Yes
	 
	 	 	 	 	 	 
	Party B

	 	Each of (i) a copy of the
Indenture and the other
Transaction Documents,
executed and delivered by the
parties thereto and (ii)
incumbency certificate or other
documents evidencing the
authority of the persons
executing this Agreement and
the related Confirmation[s] on
Party B’s behalf
	 	On the Closing Date
	 	Yes
	 
	 	 	 	 	 	 
	Party A/Party B

	 	Certified copies of all
corporate, partnership or
membership authorizations, as
the case may be, and any other
	 	Upon execution and
delivery of this
Agreement
	 	Yes

D-9 

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Covered by
	Party required to	 	 	 	Date by which to be	 	Section 3(d)
	deliver document	 	Form/Document/Certificate	 	delivered	 	Representation
	 

	 	documents with respect to the
execution, delivery and
performance of this Agreement
and any Credit Support
Document	 	 	 	 
	 
	 	 	 	 	 	 
	Party A

	 	[FFIEC Consolidated Report
of Condition for Insured
Commercial and State-Chartered Savings Banks
(“Call Report”) of
[                    ]].
	 	To be made
available on
[                    ] after
the end of each fiscal
quarter of
[                    ].
	 	Yes

Part 4. Miscellaneous.

	 	(a)	 	Addresses for Notices: For the purpose of Section 12(a) of this
Agreement: Address for notices or communications to Party A:
	 
	 	 	 	[                    ]
	 
	 	 	 	[                    ]
	 
	 	 	 	[                    ]
	 
	 	 	 	Telephone:[                    ]
	 
	 	 	 	Facsimile:[                    ]
	 
	 	 	 	With a copy to:
	 
	 	 	 	[                    ]

	 	 	 

	Address for notices or communications to Party B (for all purposes):
	 
	Address:

	 	Chesapeake Funding LLC
	 

	 	940 Ridgebrook Road
	 

	 	Sparks, MD 21152
	Attention:

	 	Chris Pointer
	Facsimile No.:

	 	(410) 773-8893
	Telephone No.:

	 	(410) 771-2393
	 
	 	 
	With a copy to Standard & Poor’s:
	 
	 	 
	Address:

	 	Standard & Poor’s, A Division of The McGraw-Hill Companies,
Inc.
	 

	 	55 Water Street, 41st Floor
	 

	 	New York, New York 10041

D-10 

 

	 	 	 

	Facsimile No.:

	 	(212) 438-2655
	Attention:

	 	Structured Finance Ratings, Asset-Backed
Surveillance Group-John Detweiler

	 	(b)	 	Process Agent. For the purpose of Section 13(c):
	 
	 	 	 	Party A appoints as its Process Agent: Not Applicable.
	 
	 	 	 	Party B appoints as its Process Agent: Not Applicable.

	 	(c)	 	Offices. The provisions of Section 10(a) will apply to this Agreement.
	 
	 	(d)	 	Multibranch Party. For the purpose of Section 10(c) of this Agreement:

	 	(i)	 	Party A is [not] a Multibranch Party.
	 
	 	(ii)	 	Party B is not a Multibranch Party.

	 	(e)	 	Calculation Agent. The Calculation Agent is Party A.
	 
	 	(f)	 	Credit Support Document. Details of any Credit Support Document:
	 
	 	 	 	Each of the following, as amended, extended, supplemented or otherwise modified in writing
from time to time, is a “Credit Support Document”:
	 
	 	 	 	Party A: (i) The Credit Support Annex and (ii) any guarantee (including any Eligible
Guarantee) of Party A’s obligations hereunder procured by Party A in compliance with this
Agreement.
	 
	 	 	 	Party B: The Credit Support Annex.
	 
	 	(g)	 	Credit Support Provider.
	 
	 	 	 	Credit Support Provider means in relation to Party A, the guarantor under any guarantee
(including any Eligible Guarantee) of Party A’s obligations hereunder procured by Party A
in compliance with this Agreement.
	 
	 	 	 	Credit Support Provider means in relation to Party B, Not Applicable.
	 
	 	(h)	 	Governing Law. This Agreement and any and all controversies arising out of or in
relation to this Agreement will be governed by and construed in accordance with the laws of the
State of New York (without reference to its conflict of laws doctrine).
	 
	 	(i)	 	Netting of Payments. Subject to any particular Confirmation executed in connection with
this Agreement, subparagraph (ii) of Section 2(c) of this Agreement will apply to all
Transactions under the Agreement.
	 
	 	(j)	 	“Affiliate” will have the meaning specified in Section 14 of this Agreement.

D-11 

 

Part 5. Other Provisions.

     (a) Representations. Section 3(a)(iii) is hereby amended by inserting the words “or
investment policies, or guidelines, procedures, or restrictions,” immediately following the word
“documents,”.

     (b) Financial Statements. Section 3(d) is hereby amended by adding in the third line thereof
after the word “respect” and before the period:

     “or, in the case of financial statements, a fair presentation of the financial condition of
the relevant party”

     (c) Additional Representations. Section 3 is hereby amended by adding the following
additional subsections:

     (d) “Eligible Contract Participant. (a) It is an “eligible contract participant” as defined in
the Commodity Exchange Act, as amended by the Commodity Futures Modernization Act of 2000, (b) this
Agreement and each Transaction is subject to individual negotiation by each party and (c) neither
this Agreement nor any Transaction will be executed or traded on a “trading facility” within the
meaning of Section 1a(33) of the Commodity Exchange Act, as amended.

     (e) Line of Business. It has entered into this Agreement (including each Transaction
evidenced hereby) in conjunction with its line of business (including financial intermediation
services) or the financing of its business.

     (f) No Agency. It is entering into this Agreement, any Credit Support Document to which it
is a party, each Transaction and any other documentation relating to this Agreement or any
Transaction as principal (and not as agent or in any other capacity, fiduciary or otherwise).”

     In addition, the parties each represent that:

No Reliance. Each party represents to the other party (which representation
will be deemed to be repeated by each party on each date on which a
Transaction is entered into or amended, extended or otherwise modified)
that: (1) it is acting for its own account and has made its own independent
decisions to enter into this Agreement and any Transaction hereunder and as
to whether this Agreement and any Transaction hereunder is appropriate or
proper for it based on its own judgment and upon advice from such advisors
as it has deemed necessary; (2) it is not relying on any communication
(written or oral) of the other party as investment advice or as a
recommendation to enter into this Agreement or any Transaction hereunder, it
being understood that information and explanations related to the terms and
conditions of this Agreement and any Transaction hereunder shall not be
considered investment advice or a recommendation to enter into this
Agreement or any Transaction hereunder; (3) no communication (written or
oral) received from the other party shall be deemed to be an assurance or
guarantee as to the expected results of any Transaction hereunder; and (4)
it is capable of evaluating

D-12 

 

and understanding (on its own behalf or through independent professional
advice), and understands and accepts, the terms, conditions and risks of that
Transaction; and (5) it is capable of assuming, and assumes, the financial
and other risks of that Transaction.

     In addition, Party B represents that:

ERISA. It is not (i) an employee benefit plan (as defined in Section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)),
subject to Title I of ERISA; a plan (as defined in Section 4975(e)(1) of the
Internal Revenue Code of 1986, as amended (the “Code”)), subject to Section
4975 of the Code; or a plan subject to any other federal, state, local or
non-U.S. statute, regulation, procedure or restriction that is materially
similar to Section 406 of ERISA or Section 4975 of the Code (any such
employee benefit or other plan, a “Plan”); or (ii) a person acting on behalf
of or deemed to hold assets of any Plan. It will provide notice to Party A in
the event that it becomes aware that it is in breach of any aspect of this
representation or that, with the passing of time, giving of notice or expiry
of any applicable grace period, it will breach this representation.

     In addition, Party A represents that:

Pari Passu: Its obligations under this Agreement rank pari passu with all of
its other unsecured, unsubordinated obligations except those obligations
preferred by operation of law.

     (g) Method of Notice. Section 12(a)(ii) of this Agreement is deleted in its
entirety.

     (h) Set-off.

     (i) All payments under this Agreement shall be made without set-off or
counterclaim, except as expressly provided for in Section 2(c), Section 6 (subject
to Part 5(e)(ii) below) or Paragraph 8 of the Credit Support Annex.

     (ii) Section 6(e) shall be amended by the deletion of the following sentence:
“The amount, if any, payable in respect of an Early Termination Date and
determined pursuant to this Section will be subject to any Set-off.”

     (i) Consent to Recording. The parties agree that each party may electronically record all
telephonic conversations between marketing and trading personnel in connection with this
Agreement. Each party agrees to obtain any necessary consent of, and give any necessary notice of
such recording, to, its relevant personnel.

     (j) Waiver of Jury Trial. EACH PARTY HEREBY IRREVOCABLY WAIVES
ANY AND ALL RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING ARISING OUT OF
OR RELATING TO THIS AGREEMENT, ANY CREDIT SUPPORT DOCUMENT OR ANY TRANSACTION CONTEMPLATED

D-13 

 

HEREBY.

     (k) Additional Acknowledgments and Agreements of the Parties.

     (i) No Amendment without Prior Confirmation by Rating Agencies. Section 9(b) of
this Agreement is hereby amended by adding the following immediately before the
period at the end thereof: “, and unless each Rating Agency confirms that such
amendment will not cause the reduction, suspension or withdrawal of the then-current
rating of any of the Investor Notes, unless such amendment (i) clarifies any term or
provision, corrects any inconsistency, cures any ambiguity, or corrects any
typographical error in this Agreement or (ii) amends the notional amount or the other
terms of a confirmation to satisfy the requirements of the Indenture (in which case
written copies of such proposed amendment will be provided to the Rating Agencies
prior to the effectiveness of such amendment)”.

     (ii) [Reserved].

     (iii) [Reserved].

     (l) Notices to Noteholders. Party B shall provide Party A with copies of all notices and
reports given to the holders of the Investor Notes, and upon request, shall provide Party A with
any other notices or reports which could be requested by the holders of any Investor Notes.

     (m)
[Reserved].

     (n)
Transfers.

     (i) Except as provided in Section 6(b)(ii) and Part 5(k)(ii) below,
and
except for transfers authorized by Section 7[(a) and] (b), Party A may not transfer
(whether by way of security or otherwise) any interest or obligation in or under
this Agreement without the prior written consent of Party B. Party A shall provide
prior written notice to each Rating Agency of any transfer made by it pursuant to
Section 6(b)(ii) or Section 7(b).

     (ii) Subject to giving prior written notification to Party B and Moody’s and
receipt of Rating Agency Confirmation from S&P, Party A may (at its own expense)
transfer its rights and obligations with respect to this Agreement to any other
entity (a “Transferee”) that is an Eligible Replacement, provided that (A)
the Transferee contracts with Party B on terms that (I) are identical to the terms of
this Agreement in respect of any obligation (whether absolute or contingent) to make
payment or delivery after the effective date of such transfer; and (II) insofar as
they do not relate to payment or delivery obligations, are, in all material respects,
no less beneficial for Party B than the terms of this Agreement immediately before
such transfer and (B) unless such transfer is effected at a time when an S&P
Substitution Event or a Moody’s First Trigger Event has occurred and is continuing,
Party B has determined that the condition in
sub-paragraph (A)(II) above is satisfied.

D-14 

 

     (iii) If Party A requests Party B in writing to make a determination for the purpose of
sub-paragraph (ii)(B) above and Party B does not notify Party A of its determination within 20
Local Business Days of such request, such sub-paragraph (ii)(B) shall be deemed to be deleted for
the purpose of the relevant transfer, provided that such transfer is made at a time when a
Moody’s First Trigger Event has occurred and is continuing.

     (iv) In making any determination for the purpose of sub-paragraph (ii)(B) above,
Party B shall act in a commercially reasonable manner.

     (v) If an entity has made a Firm Offer (which remains capable of becoming legally
binding upon acceptance) to be the transferee of a transfer to be made in accordance with (ii)
above, Party B shall (at Party A’s expense) at Party A’s written request, take any reasonable
steps required to be taken by it to effect such transfer.

     (vi) Following a transfer in accordance with Part 5(k)(ii), all references to Party A shall
be deemed to be references to the Transferee.

     (o) Downgrades of Party A.

(A) S&P Substitution Events. If an S&P Substitution Event occurs with respect
to each Relevant Entity, Party A shall (a) within 10 Local Business Days of the
occurrence of such S&P Substitution Event and at its sole expense, post Eligible
Collateral for the benefit of Party B in the amount and on the terms then applicable
under the Credit Support Annex, and (b) use commercially reasonable efforts to,
within 60 calendar days of the occurrence of such S&P Substitution Event, assign its
rights and obligations under all Transactions to an Eligible Replacement in
accordance with Part 5(k)(ii) above, provided that (A) no termination
payments or other settlement amounts are payable by Party B to either Party A or the
Transferee at the time of or as a result of such assignment by Party A and (B) any
termination payments or other settlement amounts are to be settled directly between
Party A and the Transferee. Upon the successful consummation of any assignment to a
Transferee as contemplated in this Part 5(l)(A), any obligation of Party A to post
and maintain collateral under the Credit Support Annex in respect of such S&P
Substitution Event shall terminate and Party B shall release its security interest
in, and return to Party A, any then-posted collateral.

(B) Moody’s Second Trigger Events. If a Moody’s Second Trigger Event has
occurred and is continuing, Party A shall at its own cost use commercially
reasonable efforts to, as soon as reasonably practicable, either (x) procure an
Eligible Guarantee in respect of all of Party A’s present and future obligations
under this Agreement from a guarantor that has the Moody’s Required Hedge Ratings,
or (y) effect a transfer of

D-15 

 

its rights and obligations under this Agreement to an Eligible
Replacement in accordance with Part 5(k)(ii) above.

     (p) USA PATRIOT Act Notice. Party A hereby notifies Party B that pursuant to the requirements
of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the
“Act”), it is required to obtain, verify and record information that identifies Party B, which
information includes the name and address of Party B and other information that will allow Party A
to identify Party B in accordance with the Act.

     (q) Non-Petition. Party A agrees that it will not, prior to at least one year and one day (or
if longer, the applicable preference period then in effect plus one day) following the payment in
full of all the Investor Notes issued pursuant to the Indenture and the expiration of all
applicable preference periods under the laws of the United States, relating to any such payment,
acquiesce, petition or otherwise invoke or cause Party B to invoke the process of any governmental
authority for the purpose of commencing or sustaining a case (whether voluntary or involuntary)
against Party B under any bankruptcy, insolvency or similar law or appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official of Party B or any
substantial part of its property or ordering the winding-up or liquidation of the affairs of Party
B; provided that this provision shall not restrict or prohibit Party A from joining any other
person, including, without limitation, the Trustee, or from asserting or exercising its rights, in
any bankruptcy, reorganization, arrangement, insolvency, moratorium or liquidation proceedings
commenced by any Person other than Party A or its affiliates or other analogous proceedings
already commenced under applicable laws. This Part 5(n) shall survive any termination of this
Agreement.

     (r) Limited Recourse. Notwithstanding anything to the contrary contained herein, the
obligations of Party B under this Agreement are limited recourse obligations of Party B, payable
solely from the Collateral (as such term is defined in the Indenture), subject to and in
accordance with the terms of the Indenture, and, following realization of the Collateral, any
claims of Party A against Party B shall be extinguished and shall not thereafter revive. None of
the directors, shareholders, officers or administrators of Party B shall be liable for any amount
due from Party B under this Agreement. It is understood that the foregoing provisions shall not
(i) prevent recourse to the Collateral for the sums due or to become due to Party A under this
Agreement (subject to the priority of payments set forth in the Indenture) or (ii) constitute a
waiver, release or discharge of any obligation of Party B arising under this Agreement until the
Collateral has been realized and the proceeds applied in accordance with the Indenture,
whereupon any outstanding obligation of Party B under this Agreement shall be extinguished.
Notwithstanding the foregoing (or anything to the contrary in this Agreement), Party B shall be
liable for its own fraud, willful misconduct and/or bad faith. This Part 5(o) shall survive any
termination of this Agreement.

     (s) Jurisdiction. Section 13(b) of this Agreement is hereby amended by: (i) deleting the word
“non-” in the second line of subparagraph (i) thereof; and (ii) adding the words “except as
necessary to pursue enforcement of the judgment of any such court in other jurisdictions” to the
last line of subparagraph (i) thereof immediately prior to “; and”.

     (t) Delivery of Confirmations. For each Transaction entered into hereunder, Party

D-16 

 

A shall promptly send to Party B a Confirmation (which may be via facsimile transmission).
Party B agrees to respond to such Confirmation within two Local Business Days, either confirming
agreement thereto or requesting a correction of any error(s) contained therein. Failure by Party A
to send a Confirmation or of Party B to respond within such period shall not affect the validity or
enforceability of such Transaction. Absent manifest error, there shall be a presumption that the
terms contained in such Confirmation are the terms of the Transaction.

     (u) Certain Definitions.

“Eligible Guarantee” means an unconditional and irrevocable guarantee that is
satisfactory to S&P (as evidenced by receipt of Rating Agency Confirmation
from S&P) and is provided by a guarantor as principal debtor rather than
surety and is directly enforceable by Party B, where either (A) a law firm
has given a legal opinion confirming that none of the guarantor’s payments to
Party B under such guarantee will be subject to withholding for Tax and such
opinion has been disclosed to Moody’s, (B) such guarantee provides that, in
the event that any of such guarantor’s payments to Party B are subject to
withholding for Tax, such guarantor is required to pay such additional amount
as is necessary to ensure that the net amount actually received by Party B
(free and clear of any withholding tax) will equal the full amount Party B
would have received had no such withholding been required, or (C) in the
event that any payment under such guarantee is made net of deduction or
withholding for Tax, Party A is required, under Section 2(a)(i), to make such
additional payment as is necessary to ensure that the net amount actually
received by Party B from the guarantor will equal the full amount Party B
would have received had no such deduction or withholding been required.

“Eligible Replacement” means an entity that could lawfully perform the
obligations owing to Party B under this Agreement (i) that (A) has the
Moody’s Required Hedge Ratings and (B) satisfies the Hedge Counterparty
Ratings Requirement, or (ii) whose present and future obligations owing to
Party B are guaranteed pursuant to an Eligible Guarantee provided by a
guarantor that (A) has the Moody’s Required Hedge Ratings and (B) satisfies
the Hedge Counterparty Ratings Requirement.

“Firm Offer” means an offer which, when made, was capable of becoming legally
binding upon acceptance.

“Hedge Counterparty Ratings Requirement” is satisfied by a Relevant Entity
(i) if such entity has a short-term rating from S&P of at least “A-1” (or, if
such entity does not have a short-term rating from S&P, a long-term rating
from S&P of at least “A+”).

“Moody’s First Trigger Event” means, at any time when Investor Notes are
outstanding and rated by Moody’s but a Moody’s Second Trigger

D-17 

 

Event has not occurred, that no Relevant Entity satisfies the Moody’s First Trigger Required
Ratings.

“Moody’s First Trigger Required Ratings” are satisfied by an entity (x) where such entity is the
subject of a Moody’s Short-Term Rating, if such rating is “Prime-1” and its long-term, unsecured
and unsubordinated debt obligations are rated “A2” or above by Moody’s, and (y) where such entity
is not the subject of a Moody’s Short-Term Rating, if its long-term, unsecured and unsubordinated
debt obligations are rated “A1” or above by Moody’s.

“Moody’s Required Hedge Ratings” means the Moody’s First Trigger Required Ratings or the Moody’s
Second Trigger Required Ratings.

“Moody’s Second Trigger Event” means, at any time when Investor Notes are outstanding and rated by
Moody’s, that no Relevant Entity satisfies the Moody’s Second Trigger Required Ratings.

“Moody’s Second Trigger Required Ratings” are satisfied by the entity
(x) where such entity is the subject of a Moody’s Short-Term Rating, if such rating is “Prime-2” or
above and its long-term, unsecured and unsubordinated debt obligations are rated “A3” or above by
Moody’s, and
(y) where such entity is not the subject of a Moody’s Short-Term Rating, if its long-term,
unsecured and unsubordinated debt obligations are rated “A3” or above by Moody’s.

“Moody’s Short-Term Rating” means a rating assigned by Moody’s under its short-term rating scale in
respect of an entity’s short-term, unsecured and unsubordinated debt obligations.

“Rating Agency Confirmation” means with respect to any specified action or determination, receipt
by Party B of written confirmation from each Rating Agency, for so long as any Investor Notes are
outstanding and rated by either Rating Agency, that such specified action or determination will not
cause such Rating Agency to reduce or withdraw its rating of any such Investor Notes.

“Relevant Entities” means Party A and any guarantor under an Eligible Guarantee in respect of all
of Party A’s present and future obligations under this Agreement.

An “S&P Substitution Event” is deemed to occur with respect to a Relevant Entity if (i) any of the
Investor Notes are Outstanding and rated by S&P, and (ii) the short-term rating of such Relevant
Entity from S&P is downgraded below “A-1” or, if such Relevant Entity does not have a short-term
rating from S&P, the long-term rating of such Relevant Entity from S&P is downgraded below “A+”.

D-18 

 

“Transaction Documents” shall have the meaning assigned to such term
under the Indenture.

     (v) Safe Harbors. Each party to this Agreement acknowledges that:

     (w) (i) [This Agreement, including any Credit Support Document, is a “master netting
agreement” and a “swap agreement” as defined in the U.S. Bankruptcy Code (the “Code”), a
“netting contract” as defined in Section 402 of the Federal Deposit Insurance Corporation
Improvement Act of 1991, as amended (“FDICIA”) and a “swap agreement” as defined in Section
11(e)(8)(D) of the Federal Deposit Insurance Act, as amended (“FDIA”);

     (x) (ii) Party A is a “master netting agreement participant,” a “financial
institution,” a “financial participant” and a “swap participant” as defined in the Code, and
a “financial institution” as defined in Section 402 of FDICIA;

     (iii) The rights provided to Party A herein, and in any Credit Support
Document, are rights protected by Section 560, Section 561, Sections 362(b)(17)
and (27), and Section 362(o) of the Code, Sections 403 through 405 of FDICIA and
Section 11(e)(8)(A) of FDIA;

     (iv) All transfers of cash, securities or other property under or in connection
with this Agreement, any Credit Support Document or any Transaction hereunder are
transfers protected by Sections 546(e), (f), (g) and (j) of the Code, Section
11(e)(8)(C) of FDIA, and Sections 403(f) and 404(h) of FDICIA; and

     (v) All obligations under or in connection with this Agreement, any
Credit Support Document or any Transaction hereunder represent obligations in
respect of “termination values”, “payment amounts” or “transfer obligations”
within the meaning of the Code and FDIA.]

     (y) Tax. Notwithstanding the definition of “Indemnifiable Tax” in Section 14 of this
Agreement, in relation to payments by Party A, any Tax shall be an Indemnifiable Tax and, in
relation to payments by Party B, no Tax shall be an Indemnifiable Tax.

     (z) Rating Agency Notifications. Notwithstanding any other provision of this Agreement, this
Agreement shall not be amended, no Early Termination Date shall be effectively designated by Party
B, and no transfer of any rights or obligations under this Agreement shall be made, unless Moody’s
and S&P have been given prior written notice of such amendment, designation or transfer.

     (aa) Severability. If any term, provision, covenant, or condition of this Agreement, or the
application thereof to any party or circumstance, shall be held to be invalid or unenforceable (in
whole or in part) for any reason, the remaining terms, provisions, covenants, and conditions
hereof shall continue in full force and effect as if this Agreement had been executed with the
invalid or unenforceable portion eliminated, so long as this Agreement as so modified continues to
express, without material change, the original intentions of the parties as to the subject matter
of this Agreement and the deletion of such portion of this Agreement will not substantially

D-19 

 

impair the respective benefits or expectations of the parties to the Agreement; provided,
however, that this severability provision shall not be applicable if any provision of Section 2, 5,
6, or 13 (or any definition or provision in Section 14 to the extent it relates to, or is used in
or in connection with, any such Section) shall be so held to be invalid or unenforceable.

     (bb) Acknowledgement of Assignment. Party A hereby acknowledges and consents to Party’s
assignment to the Collateral Agent, for the benefit of the Noteholders under the Indenture, of
Party B’s rights hereunder, including the right to enforce Party A’s obligations hereunder.

[Signature Page Follows]

D-20 

 

     IN WITNESS WHEREOF, the parties have executed this Schedule by their duly authorized
officers as of the date hereof,

	 	 	 	 	 	 	 

	[_____________________]

	 	 
	 	CHESAPEAKE FUNDING LLC
	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Name:

	 	 	 	Name:	 	 
	Title:

	 	 	 	Title:	 	 

D-21 

 

EXHIBIT E

TO SERIES 2010-1

INDENTURE SUPPLEMENT

FORM OF MONTHLY SETTLEMENT STATEMENT

See Attached

E-1 

 

	Summary Balance Report

	Settlement Date / Payment Date Determination Date

	Scrips 2008-1

	Series 2009-4

	Aggregate Invested Amount

	Aggregate Unit Balance prior Monthly Period $

	Adjusted Aggregate Unit Balance $

	Chesapeake Funding LLC

	Series Invested Percentage Average Series Invested Percentage Series Invested Amount

	Less: Series Principal Collection Subaccount cash

	Common Membership Interest $

	Chesapeake Account Balances

	Collection Account Ending Balance

	Gain on Sals Account Ending Balance $

	Issuer General Account Ending Balance

	Series General Collection Subaccount Ending Balance Series Principal Collection Subaccount Ending
Balance Series Settlement Collection Subaccount Ending Balance Series Reserve Account Ending
Balance Series Yield Supplement Account Ending Balance Series Distribution Account Ending Balance

	Amortization Events Liquid Credit Enhancement Deficiency? Allocated Asset Amount
Deficiency Three Month Average Change Off Ratio Three Month Average Residual Value Loss Ratio
Three Month Average Paid-ln Advance Ratio Three Month Average Delinquency Ratio

	Dynamic Enhancement Tests

	Three Month Average Charge Off Ratio

	Three Month Average Residual Value Loss Ratio Three Month Average Paid-in Advance Ratio Three
Month Average Delinquency Ratio

	Lease Conversions to Fixed Rate Caps Purchased for Converted Leases

	Cars

	Equipment

	Forklifts

	Light Duty Trucks

	Medium DutyTrucks

	Heavy Duty Trucks

	Trailers
Truck Body

	Portfolio Composition

 

	5 1 h 1 i
1 3
1
——  —

	Chesapeake Funding LLC

	2 Payment Date: 7-Jun-10

	4 Updated
Determination Date:
3-Jun-10

	a            Pool Balance
—

	Aggregate Lease Balance (second preceding Period End Data)

	a            Lease Balance (last Period End Date)

	9 Open-End Lease Balance

	Closed-End Lease Balance

	Financial Service Equipment Lease Balance

	Open-End Lease Balance

	Closed-End Lease Balance

	Aggregate Residual Value Amount

	Closed-End Leases

	Financial Service Equipment Leases

	Leases

	Consumer Leases

	Lease Balance of Federal Government Obligors

	Delinquent Leases

	Chapter 11 Obligors not affirmed by bankruptcy court

	Non U.S. (Caribbean)

	Cendant Affillates

	Lease Balance of Init Term >144 mnths. Remain Term > 120 ninths

	. Other Inellgibles

	Stated Residual Value exceeds ALG

	Eligible Leases > 5 years

	Eligible Leases > 7 years

	Lease Balance of Stats Obligors

	.21 High Lease Balance Amount (> $1.0 million)

	.22 Lease Balance of largest ObIigor

	Is the largest Obligor rated at least Baa3? (Y or N)

	Lease Balance Second largest Obligor

	Lease Balance of largest Obligors

	Lease Balance of 10 largest Obligors

	Aggregate Paid-ln Advance Balance

	Cost of Paid-in Advance Vehicles > 60 days

	Cost of Paid-in Advance Vehicles > 120 days

	Reduction In Lease Balance for Monthly Period for all Leases

	Back Billed Amortization

	Sold Unite Remaining Book Value

	Net Book Value of Closed-End Leases If vehicle is a Residual Value Vehicle

	Unit Repurchase Payments

	Monthly Servicer Advance [1-20 days past due from aging report)

	. Monthly Servicer Advance Reimbursement Amount

	CP Rate — H.15 Index

	Lease Balance of all Floating Rate Leasas

	Aggregate Receivables Amount

	Class X 1999-1B Invested Amount

	Cost of Rejected Paid-in Advance Vehicles for Monthly Period

	Sum of Paid-in Advance proceeds from all Unite which became Rejected PIA

	Vehicles during such Monthly Period and prior Monthly Periods

	Aggregate Net Lease Losses

	Recoveries

	Termination Proceeds received during preceding Monthly Period for all Unit

	Vehicles that became Residual Value Vehicles during prior Monthly Periods

	Stated Book Values for Vehicles that became Residual Value Vehicles

	during the previous Monthly Period

	Termination Proceeds received during preceding Monthly Period for all Unit

	Vehicles that became RVV in prior Monthly Periods

	80+ days past due receivables

	Ending receivable balance from preceding Monthly Period

	Aggregate billings for preceding Monthly Period

	Termination Proceeds received from Used Car Sales

	Aggregate Collections for preceding Monthly Period (net of Used Car Sales]

	Aggregate Collections of Fleet receivables lor preceding Monthly Ported

	Lease Rats Cap payments (sea also Series Lease Cap payments line 126)

	Conversions of Fixed Rate Leases

	Caps Purchased for Conversions of Fixed Rale Leases

	Termination Proceeds received for all Unit Vehicles that became Residual
Value

	Vehicles during preceding Monthly period and all prior Monthly Periods

	Aggregate Net Book Value of all Unit Vehicles that became Residual

	Value Vehicles during prior Monthly Period
—

	Series Specific Inputs LLC            SiHM 2009-2
Series 2008-2 Series 2O0fl-3
Series 2009-1 Sflfla*
200S-4
Aniounls
——  —

	Commitment Amount

	Beginning of Period: Seri&s Maximum Invested Amount Class A

	End of Period: Sortos Manlmum Invested Amount

	Beginning oF Period: Series Maximum Invested Amount Class Q

	90 End of Period: Srsries Maximum Invested Amount

	Beginning of Parlotf: Series Maximum Invested Amount Class. C

	92 End of Period: Scries Maximum invested Amount

	Net Proceeds frcin Initial Invested Amount ($0 after first Monthly Period)

	mesled Amount beginning of Monthly Period / on Closing Data

	. Not Cash Proceeds received

	Initial Reserve Account deposit ($» after first Monthly Period)

	Inv % at last day of trie Mantrty Period just end^d

	Collections allocated to each seilss

	ncrsases

	ncreese occLrrlng on a StattiamentDate

	PrfiM#p$t Ovetpaymsnt Amount (for Mormsiton purposes arty)

	Decreases /Cali Notes

	Amounts allocated Ic- another Series of Investor Notes to be applied

	(D mdiira flits Series Invested Amount

	125 Redii IrMlAmounlofttttierSflrfasollnvesiorNoteE

	If ‘A“jC5erlBS Alloc. Adj. Ago. Unit Balancu as of end or Revolvfnp parlod /
Commitment Teim. Dale

	112 Has the series Note TermlraUon Date passed? (Y or M)

	113 Has APA Bank Purchase Date passed? [V or N)

	114 Has a Receivables Termination Evenl occurred?

	115 s a Paydown Period In effect?

	aiv amounts nWiHrf bvthe Issuer urvder the PurchFKB Aomt. (after MnM
Tnrmlnallnfil
—

 

	Chesapeake Funding LLC

	Loan to Holdings for new vehicle purchases

	Withdrawals from General Collacllon Sub Account deposited (o Hid

	Principal Collection Siihaccouni during Uia praredlna Monthly Parlofl Daily Principal
Utilization Amount volunteiy decrease of Outstanding Series of Notes Transfer Proceed*
toffrom term series to OB-2 Settlement Collection Account Series Available Excess Collections
Amount Balance In Prfnclpal Collection Subaccounl

	J3S 132

	Series General Collection Subaccouni Series Prindpal
Collection Subaccouni Series Distribution Subaccount
Series Reserve Account Series Yield supplement Account
Gain on Sale Account

	Series Weighted Average Yield Shortfall Lease Yield
aggregate Lease Balance of all Yield Shortfall Leases for such Series

	Series Weighted Average Yield Shortfall Life

	Series Lease Rale Cap payments (see also lease Rale Cap payments Una 74) Series Lease Rale Cap
Costs Aclllal days elapsed In Monthly Period Actual days elapsed In Series Interest Pflricd 1 Month
LJBOR

	eS Monthly Interest (from cojidulis] Interest
Shortfall, If any Additional Interest, if any
Commitment Fee Payment

	Servicing Fee

	laVMStheServlcer?

	SupplemenlaE Servicing Fee allocated la each serlaa (In 9) Back-up ServJcerfee
Adnilnistratoi Fee Increased Casts

	Annwaate Un ll Balanca

	&Udi of: Aggregate Lease Balance
Aggregate PaEd-ln Advance Amount
Aggregate Rosld Jal Value Amount

	Awuvaate Unit Bslsnca

	Adjusted Atioreoate Unit Bqlanpe

	Afjgresarla Lease Balance less: Aggregate Lease
Adjustment Amount

	plus 90% of:

	AGgs            Ridl Vt            Amount

	less: Excess ReaWual Valua Amount

	pine 90% of:

	Aggregate Paid-in Advance Balance

	less: Excess Paid-in Advenes Amount

	Atfjuststf AnniBoate Unit Bslanco

	Acoranata Le ase Balance

	Open-End Lease Balance Closed-End Lsbsb Balance
Consumer Open-End Leaso Balance js: Consumer
Closetl-Eiitt Loase Balance 194 Financial Seivlce
Open-End Lo^se Balance TM Financial Service Closed-End
Lease Bafance

	less; Ineligible Leasas

	123 121

	Lease Bflfenm

	Scries Investsd Percentage

	Series Allocated Adjusted Aggregate Unll Balance divided by: Sum at numerators used to determine
Invested percentage for all SerEes allocations

	wstad PerconltxtB ,,,,___

	ii

	S&ries Invented Amount

	Invested Amount — beginning balance for Monihly Period plus: lncro3GG& less: Decreases i Call less:
Monthly Principal Payment (if AiiBitliaibn Period lias commenced)

	Series invosled AmoUnJ

	Serioa Renuired Enhancemaxit Amount

	or

	3 Month Aveiarjo Charge Off Ratio > 0,60^ 3 Month Avenge
Residual Value Loss Ratio > 1O.cm 3 Month Aveiaoe PaW-ln
Advance Loss Ratio > 1.0% 3 Month Avefage
DelfrquancyRalio> 4.5%

	[a] Required Percentage
[b] the sum of (I), (H) and (111)

	(D 3 Month Average Residual Valuo Loss Ratio >12.5Q%

	<l)L_Jrs Equipment Amount

	(2) Excess Forkllfl Amount

	(3) Excess Trucfc Amouni

	(4) Excess Trailer Amount

	<G) Excess Truck Body Amount

 

	1 Chesapeake Funding LLC (B) Excess            C “ —i ¦ i            H 1
m            Aftamatlve Vflhlcle Amount 1
228 HB (ii) the sum of (A), (B). [C) and (D) 1
——  -—  ——  —

	230 231 (A) averconcenlratlon Amount (fi)
£33 Excess Longer-Term Lease Amouni (C)
Ekwss Htgh Lease Balance
Amount (D) Rjtoass Stale ObligcrRlsk
Amounl
Series Reautred Enhancement Amount
—

	as            Series Taraal Qvorcotlstaraliiation
Amount
—

	21! 3.92!^ Qf Maximum Invested Amount
ai
—

	as as            Required Enhancement Amount less:
Series Reserve Account Amount less:
Series Principal Collactlon
Sub-account Balanca less: Anwuht
Class B

	as

	JSE

	£52 Series Invested Amount (ml of
263 Increases occurring on such
Settlement Pate) plus; Sartas
Required Overcollatsj-allzatlon
Amount
Series Required Asset Amount

	2K            Series Allocated AdhistRri Anarenate
Unit Balance
—

	gsa            Adjusted Aggregate Unit Balance
multiplied by Series Required Asset
Amount / Aggregate Required Asset
Amount
Serbs Allocated AditistedAaareaato
Unit BafBnce
—

	Mi            Series Allocated Asset Amourt
Daitclancv
—

	as            Series Allocated Adjusted Aggregate
2B5 Unit Balance ess: Garbs Required
Asset Amount
Sorfas Allocated Asset Amount
DalidQncv
—

	» 26! Gerles LkiuW Credit Enhanr^nient
Deficiency
—

	90 GGrlesRaqiiirad Reserve Account
m            Amount es?; Series Reserve Account
Amount
Sories Llavtd Crert’l Enhsncsw&nt
Deficiency
—

	Series Reseive Account Surnlua
—

	sxa            Series Reseive Account Amount less:
277 Required Reserve Account Amount
Series Reserve Account Sumfws
—

	an            Series Excess Fleet Racalvables
5n1 Amount
—

	as            Coltecttons In respect of Ftaot
SB            Receivables less: 1D&O1B Invested
MS            Amount
Excess Fte&t Ret&lv&bte Amount
—

	2K            Aaareuate Lease Actiusimont Amount
—

	31 OvercorkCeniratEon Amount Excess -
590 SSI            Lflngei-Term LeBS&AiiQJnt Ekcbsb
State Obligor Risk Amount
Excess Consumer Leaso Amount Excew
High Lease Balance Amount
-

	IK            Atrareaafe Lea^a Adiusfmoni Amounl
294
—

	P            Ovarconcentraifon Amount
—

	Graal&i of: Obligor with faroasl -
Lease Balance of Eligible
Receivables less: % of tha Aggrapala
Lease BaliinCe as staled In the
Enhancement Matrix Less 1% If rated
lees (han 3aa3]
-

	3,75% Top Z Obligors with Lajgsst
Lease Balance of Eligible
Receivables less: %of tfie
AGflreflate Lease Balance os stated
in the Enhancement Matrix (Loss 1%
if rated toss lhan Baa3)

	m m 7.60% Top 5 Obligors with largeel
305 Lease Balance of Eligible
Recalvablos loss: % of Ihe Aggre^afQ
Lsase Balance

	3£6 2C7 JOB 309 Top 10 Obligors with lartjestLeaso
Balance of Eligible Receivables
less; % E>[Uie Aggregate Lease
Balance

	310 30.00% Ovoiconcorttration Amount
¦112
—

	3J3 Excess Paid-in Advance Amount
an
—

	us            Graatar of (if positive}; Aggregate
ate 317 Cost of eactt Paid-in Advance
Vehicle less: 10% Aggregate Unit
Balance

	911 Afloragatg Cost of eacll Paid-in -
aa            Advance Vehicle allocated to SUB|
421 > 60 days less: 2,5% Aggregate
Unit Balance
-

	m            Aggregate Cost of each Paid-in
m «S            Advance Vehicle allocated la SUBI
> 120 days EjfCpc f B-tfr^tn
Adi&tiGG AmQlfnl
—

	321 Era —  \iua\ Value Amount
32!
—

	jjg |Apgl ^esmual Value Amount ;
aac            toss: rsnofAgflregateUntt Balance
-

	?32 I Excess Residual Value Amount
—

	Excess Lower-Term Lease Amount
—

	iGreflterorfifnteiltlwil:
—

 

	Chesapeake Fundlm
LLC Lease Balance
af all Eligible
Leases > 5yrs
lose: 20% of
Aggregate Lease
Balance

	Lease Balance
i>F all Eligible
Leases* 7yrs less:
7.5%* of Aggregate
Lease Balance

	Stem Lonaer-Tetm L

	Excass State Qbilaor Risk Amount

	Aggregate
LeassBafance
of Slate
Obligors less:
SC%oflhe
Aggregate
Lflass Balance

	s Stefe Oblktcr Risk Amount

	Excass Consumer Lease ftmpunt

	Aggregate Leaes Balance of
sll Eligible Leases
the! are Consumer
L< less: 1.0% of
His Aggregate Lease
Balance

	s Consumer Le&so Amount

	is Hloh Lease Saianoo Amount

	Aggregate Lease
BafancBflfall
Eligible Leases
> $1 million
less: 0.5% of the
Aggregate Lease
Balance

	!xc9ssHiah Laasa Balance Amount

	.ease Balance DadlnaB

	Reduction In Lease Balance tor the Monthly Period lor all Leases

	plus: Net Book Value of
Closed-End Leases If vehicle Is
a Residual Value Vehicle

	¦ease Balance Oeofces

	Scries Principal Payment Amount

	Lease Balance
Declines pljs:
Cost of
Rejected FaM-ln
AdvancB
V.hlcle_

	Series Principal Payment Antowl

	ogs            gs of allUaseB and
all Fleet Recalvablas unpaid
fdrSOdays or mure from
orlfilnal due data as of last
day of such Montlily Period
divided by lite sum of:
Aggregate billings of all
Loasas and all Fleet
Receivables which were

	unpaid as of last day of
lmm«Jlately preceding Monlhly
Period Aggregate amount hilled
on all Leases and all Fleet
Receivables during

	Monthly Perfcd

	DoHnguoncv PerceiitetK

	Paid-in Advance Loss Hallo

	numerator

	Cost of Rejected Paid-in Advance Vehicles foi Monthly Period

	minus: Sum of Paid-in
Advanra Procseds
froinallUnllswhlchbocanKRflfecte
dPIA

	Vehicles during such Monthly period ant] prior Monthly Periods

	Cost Df Rejected Paid-in
Advance Vehicles for
Monthly Period

	Pahl-ln Advance Loss
Sam

	RasldualValuBLpssRallo

	numerator:

	urn of Residual Value
Losses on Una Vehicles
lhat became Residual Value
Vehicles during tlic
preceding Monthly Period

	minus: Termination
Proceeds received during the
preceding Monthly Peibd for all
Unit

	Vehicles that became Residual Value Vehicles during prior Monthly Periods

	sum of Stated Residual
Values fgr all Jnll
Vehicles that became
Residual Value Vehicles
during the preceding
Monthly Period

	Chame-Off Ratio

	Twelve (12) Umes:

	Aggregate Net L&ase Losses for preceding Monthly Porlod

	divided by:
Aggregate Lease Balance as of last day of socand precBtflng Montrily PoriDd
Cfrafga-OrfRaJto ..................... .
——  —

	Monthly RBSIdual Valua Gain

	Termination Proceeds received during preceding Monlhly Period and all prior

	Monlhly Periods

	loss: aggregate Net Book
Value ol all Urill Vehlclaa
lhal hocamo Rosldual Value
Vehicles during prior
Monthly Peilcd

	Montlto Residual ValwGstn

	Monlhlv Residual Valua Loss

	arjoragate Net Book Value of
all Unit Vehicles lhal
beeams Rosldual Value
Vehicles during Monlhly
Period

	loss: Yermlnatkijt Proceeds
received during procedlnn Monthly
Period for all Unit Vehicles
tliat became Rasldual Value
Vehicles during prior Monthly
Periods

	rVTCTl ifrlv Rssldual Valils Loss

	Series Weighted AvBrane Cost of Funds

	quotient of:
numerator
Aggregate amount of
Interest payable on
Series of Investor Notes

	ierlij hdAnwunlllirstdayof prior Interest Period)

	MulL(___Joy a Iracllon: 36tW days In Interest pedod

	WWHarf/taaans Coat of Pun*

	ksol Sews YhMShoilMI Amount

	Q            p Blank fnnuds Definitions

 

	| 0 IEIFIGIHIIIJ

	B..........................
——  ——  —

	Chesapoako Funding LLC
—

	4(4 Series Renulred Yield SMIemsnt Amount
—

	456 Series Yield Shortfall
Amount less: 70% or the
Class X1999-1B Invested
Amount

	Series finouted Wold
Sur»D/oman! Amount
—

	Yield StODl&mant DaltclBncv
—

	454 Series Yield Suppfeinent
Account Amount loss:
Series Required Yield
Supplement Amount

	4G4 Vtsftf Supp/emenl DeHcrancy
—

	466 Denclenc*
«o
—

	aggregate amount
dlstrltutabla from Series
Settlement Collection NO
less: aggregate
amountdeposSed In such
Series Settlement
Collection Suba/c

	OeHctormv
—

	HI            Total Cash AvsHDMn
—

	12 Collodions allocated to
Series General Cotlactlon
Subaccount

	id as            ptus: Seilss Invested
Percentage times Unit
Repurchase Payments

	in            plus; SariBB Invested
Percentage tlmas MonUity
Servlcer Advance

	plus; Sejies Invested %
times amount wllWrawntrom
Gain on Sale Account

	12! 1SJ IB            plus; Investment Income on
deposits In Series General
Collection Subaccount
Investment Income on
deposits In Series
Principal Collection
Subaccount

	US            less: Series Available
Excess Collections Amount

	1H            less: Withdrawals from
General Collection
Subaccount and deposited
In the Principal
Collection Suoaccount
during the preceding month
—

	<5 Excess amounts
—

	SB            Excess Alternative Vehicle
IB KZ            Amount |=-31.5%) Excess
«s            Equipment Amount |>5%)
EM            Excess ForWift Amount
{>Z% J Excess
Heavy-Duty TrucK Amount
<>7,5%) Excess
Medium-Duty Tiuck Amount
[>1S%) Excess Trailer
Amount (>3%) Excess
Truck Amount (>21.6%)
EkcsssTruck Boav
Amount 1>2%\
—  —

 

	Chesapeake Funding LLC            Payment De 06/07/10
Account Cash Flows            Detsrminalil 06/03/10

	ChesapeakB Funding
Collection Account

	Beginning
Balance $

	Inflows

	Collections for the Monlhly Period

	Series 2006-2 Series 2000-1 Series
2009-2 SBrles 2009-3 Series 2008-4

	outflows
Collecllons allocated to eaol) outstanding series by Invested Percentage .
Ending Balance ......... t ...................... :
—

	Series Genera/ Collection Subuccouni
Serlas 2006-2 Series 2009-1 Series 2009-2
Series 2009-3 Series 2009-4

	Beginning Balance $ $ $ $ $•

	Inflows

	Invested Percentage of Collections deposited Inlo Collection Account

	Proceeds from Inlllal sale of Sarlas Investor Notes

	Proceeds from any Increase

	Amounts allocated to another Series of Investor Notes to be applied

	to reduce such
SBrles InvBsled
Amount Net Cash
Proceeds

	outflows

	lesser of:

	(i) Proceeds from any Increase
on such Settlement Date (II)
Principal Overpayment Amount
for such Settlement Date

	Remaining Daily Principal Allocation to Principal Collection Subaccount

	Daily Principal Utilization Amount > Dally Principal Allocation

	Mat Cash Proceeds

	Total Cash Available transferred lo Series Settlement Collection SuhaoMunl

	Series Available Excess Collections Amount

	Ending Balance

	Series Settlement
Collection Svhaccount

	Benlnnlna
Balance

	Inflows

	nvestmBnt Earnings from Series General Collection Subaccount

	nveslment Earnings from Series Principal Collection Subaccount

	Series Invested Percentage of Unit Repurchase Payments

	Series invested Percentage of Monthly Servlcer Advance

	Series Invested Percentage of withdrawal from Gain on Sale Account

	.ease Rate Cap payments

	Series Lease Rate Cap payments

	Transfer from Series Collection Subaccount on Settlement Date

	Total Cash Available transferred from Series General Collection Subaocaunt

	“rom Series Reserve Account

	From Vield Supplement Account If Reserve Account Amount < Deficiency

	Transfer To/from 09-2 Settlement Collection Subaccounl

	Remaining Deficiency (after withdrawal from Yield Supplement Account)

	outflows

	Series Excess Fleet Receivables Amount (to SPV)

	Series Monthly Residual Value Gain to Gain en Sale Account

	Series Inv. % of Monlhly Servlcer Advance Reimbursement Amount to Servlcer

	If VMS not Servlcer, Series Basic Servicing Fee

	Monthly Interest Payment

	Commitment Fee Payment

	If VMS is the Services Series Servicing Fee

	Back-up servicing fee

	Series Administrator Fee

	Lesser of (I) Increased Costs and (II) Additional Costs Cap

	(A) During the Revolving Period;

	Series Allocaled Asset Amount Deficiency

	(B) During Am Period, Prior to the Serlas Note Termination Date

	Min of Series Principal Payment Amount and Series Invested Amounl

	(C) During Am Period, Alter
the Series Note
Termination Date

	Series Principal Payment
Amount

	Series Liquid Credit Enhancement Deficiency or Allocated Asset Amount Deficiency

	Series Yield Supplement Deficiency (If existing)

	Lease Rate Cap Costs

	Transfer lo/From Settlement Collection Subaccounts

	Excess of Increased CdsIs over Additional Costs Cap

	If VMS Is not Ssrvlcer, EeriaB Supplemental Servicing Fee

	Balance of account to the issuer

	Ending Balance

 

	Series Principal Collection Stibaecounl Beginning Balanc e

	inflows
Proceeds from initial sale of Notes

	Remaining Daily Principal Allocation from Saries Collection Eubaocount
Dally Principal Utilization Amount > Dally Principal Allocation

	Seriea Allocated Asset Amount Deficiency (prior to Commitment Termination)
Net Cash Proceeds allocated from General Collection Sub-account

	Min of Series Principal Payment Amount and Series Invested Amount

	outflows

	Loan to Holdings far vehicla purchases
Decrease / Call Notes/PMIs

	Reduce Invested Amount of olher Series of Investor Notes
Monthly Principal Payment during Am Period (not to exceed Invested Amount}

	Ending Balance

	Series 2006- 2

	Series 8009- 3

	Series Reserve Account Beginning Balance

	inflows

	Initial Series Reserve Account deposit

	Series Liquid Credit Enhancement Deficiency or Alloc, Asset Anil, Del. In am period

	Investment income

	outflows

	Transfer to Settlement Collection Subaccount the lesser of:

	I) Deficiency

	II) Invested Percentage of Aggregate Net Lease Losses

	III) Amount on Deposit In Series Reserve Account

	Remaining Deficiency (after draw from Yield Supplement Account)

	Series Reserve Account Surplus (lesser of:)

	Series Reserve Account Surplus

	Amount on deposit In Series Reserve Account

	Ending Balance

	Series 2006-2

	Serlas 2009-4

	Series Yield
Supplement Account

	Beginning
Balance

	Inflows

	Series Yield
Supplement
Deficiency (If any)
investment Income

	outflows

	To Series Settlement Collection A/C If
Series Reserve A/C Amount <
Deficiency Yield Supplement Account
Surplus (lesser of:)

	Series Yield Supplement Account Su rplus

	Series Yield Supplement Account Amount

	Ending Balance

	Ga/n on Sale
Account
Banlnnlng
Balance

	rn flows

	Series Monthly
Residual Value Gain
Investment Income

	outflows

	lessor of: (6.2e; Base Indenture)

	Monthly Residual Value Loss
forlminedlately preceding Monthly
Period Amount on deposit In Gain on
Sale Account

	Amount > 10% of Closed-End Leases
(Lease Balance and Residual) to
Issuer General Account 10% ol
Closed End Leases (for
information purposes only)

	Ending Balance

	Series Distribution Account Baatnnlnq Balance
Inflows (from Series Settlement Collection Subaccaunt)

	Series MonHiiy Iniorast Payment
Commilment Fee Payment

	Lesser of (i) Increased Costs and (II) Additional Costs Cap

	Paymenl of Principal

	OecreasGi’Csll

	Lease Rale Cap Cosls

	Excess or Increased Costs over Additional Costs Cap

	outflows

	Series Monthly Interest Paymenl Commitmenl Faa Payment

	Lesser of (i) Increased Costs and [II) Additional Casts Cap Excess of Increased Casts over
Additional Costs Cap Lease Rate Cap Costs P ayment of Principal to Noteholders b/Call (to
Noteholders)

	Series 2006- 2

	Sarlas 2009- 1

	Series 8009-3

	Series 2009-4

 

	Issuer General Account
Beginning Balance

	Inflows

	Transfer from Gain on Sale Account From settlement Collection
Subaccount Series Available Excess Collections Amount

	outflows
Transfer to Chssapeake Finance
Ending Balance .. §

	Total Gash back lo PKH Monthly
Sen/leer Advanca

	Term Series Excess Collections Cash from
Collections relurnGct

	PHH Vehicle Management Sendees LLC

	as Servicer

	By:.

 

	Chesapeake Funding LLC

	Earty Amortization Events

	Deffifminstjqn Date:  7tAuct-O9 7-Sep-09 7-Od-G9
B-NavO9 7-DeoQ9 7-Jan-10 3-Feb-10 S-Mar-10 7-ApMO
7-Mav-10 7-JtnVlO

	Liquid Credit
Enhancement
Deficiency
Allocated Asset
Amount Deficiency

	Twelve Month
Average Charge Off
Ratio Three Month
Average Charge Off
Ratio Charge Off
Ratio for Montfily
Period

	Twelve Month Average
ResMual Value Loss
RaSo

	Three Morah Average
Residual Value Loss
Ratio

	ResMual Value Loss
Ratio for Monthly
Period

	Twelve Month Average
Paid-in Advance Ratio
Three Month Average
Paid-in Advance Ratio
Paid-in Advance Loss
Raflo for Monthly
Period

	Three Month Average
Delinquency
Ratia > 6.0%
Delinquency
Ratio Sir
Monthly Period

 

EXHIBIT F

TO SERIES 2010-1

INDENTURE SUPPLEMENT

AGREED-UPON PROCEDURES

PHH Vehicle Management Services, LLC

	1.	 	We will request from representatives of PHH Vehicle Management Services LLC, as Servicer
(the “Servicer”), a summary detail of the Leases allocated to the Lease SUBI (“Summary of
Lease SUBI”) as of a recent date. The listing must contain the following characteristics and
distribution information (the “Characteristics” & “Distribution Information”):

Characteristics (#1-21) & Distribution Information (#22-26)

	1.	 	Aggregate Unit Balance of Leases
	 
	2.	 	Number of Leases
	 
	3.	 	Average Unit Balance
	 
	4.	 	Range of Unit Balances
	 
	5.	 	Aggregate Unit Balance of Open-Ended Leases
	 
	6.	 	Aggregate Unit Balance of Floating Rate Leases
	 
	7.	 	Aggregate Lease Balance of CP Rate Index Floating Rate Leases
	 
	8.	 	Weighted Average Spread Over CP Rate
	 
	9.	 	Range of Spreads Over CP Rate
	 
	10.	 	Aggregate Unit Balance of Floating Rate Leases Indexed to Floating Rate Other than CP
Rate
	 
	11.	 	Aggregate Unit Balance of Fixed Rate Leases
	 
	12.	 	Weighted Average Fixed Rate
	 
	13.	 	Range of Fixed Rates
	 
	14.	 	Weighted Average Original Lease Term
	 
	15.	 	Range of Original Lease Terms
	 
	16.	 	Weighted Average Remaining Lease Term
	 
	17.	 	Range of Remaining Terms
	 
	18.	 	Aggregate Unit Balance of Closed-End Leases
	 
	19.	 	Average Unit Balance of Closed-End Leases
	 
	20.	 	Range of Unit Balances of Closed-End Leases
	 
	21.	 	Average Stated Residual Value of Leased Vehicles
	 
	22.	 	Distribution by Geographic Location (by State, by Number of Leases, Aggregate Unit
Balances of Leases and Percentage of Aggregate Unit Balance)
	 
	23.	 	Distribution of Vehicle Type (by Number of Leases, Aggregate Unit Balances of Leases
and Percentage of Aggregate Unit Balance)
	 
	24.	 	Distribution of Top 20 Lessees by Industry (by Number of Leases, Aggregate Unit Balances
of Leases and Percentage of Aggregate Unit Balance).
	 
	25.	 	Distribution by Floating Rate Leases by Spread over Applicable Index (in increments of
..099% and by Number of Leases, Aggregate unit Balances of Leases and Percentage of Aggregate Unit
Balance)
	 
	26.	 	Distribution of Fixed Rate Leases by Interest Rate (in increments of .25% and by Number
of Leases, Aggregate Unit Balances of Leases and Percentage of Aggregate Unit Balance.

NOTE: This listing will be attached to our report.

F-1

 

	2.	 	We will request from representatives of the Servicer, a computer-generated automobile lease
data file and related record layouts derived from the accounting records which includes an
identifier to indicate the lease is allocated to the Lease SUBI (“Lease Data Tape”), the
information for which will be as of a recent date (the “Cut-Off Date”).

	 	a)	 	We will compare the Characteristics set forth in the Summary of Lease SUBI to the
information provided in the Lease Data Tape for #1-21 above. Any discrepancies noted will
be included as an exception within our report.
	 
	 	b)	 	We will recalculate from the Lease Data Tape the Distribution Information indicated
in #22-26 above and compare the Distribution Information set forth in the Summary of
Lease SUBI. Any discrepancies noted will be included as an exception within our report.

	3.	 	We will use a random number generator program included in the Audit Command Language
(“ACL”) program to randomly select 50 leased unit records within an origination date during
the preceding fiscal year (the “Sample Leases”) from the Lease Data Tape, exclusive of
Personalease units and perform procedures as outlined below for the sample leases selected.

	 	a)	 	We will compare certain characteristics (the “Characteristics”) set
forth in the Sample Leases as indicated below:

Characteristics

	1.	 	Unit Number
	 
	2.	 	Client Number
	 
	3.	 	Legal name of the lessee
	 
	4.	 	Vehicle make
	 
	5.	 	Vehicle model
	 
	6.	 	Vehicle type
	 
	7.	 	Contract type
	 
	8.	 	Lease Term
	 
	9.	 	Vehicle index, if applicable
	 
	10.	 	Vehicle spread rate, if applicable
	 
	11.	 	Fixed rate, if applicable
	 
	12.	 	Vehicle capitalized cost
	 
	13.	 	Vehicle residual value (for closed-end leases only)

	 	i)	 	With respect to Sample Leases identified as Vehicle
Management Services Leases by the Servicer (in the Lease Data File, this
is indicated by a blank entry in the Lease Pool field), we will compare
the Characteristics noted above to the corresponding information set
forth on or derived from an obtained copy (“print screen”) of the Asset
Management System Inquiry Screen (“ACFI Screen”), the Asset Management
Physical Information Inquiry Screen (“AAMI Screen”), the Asset Management
Closed-End Inquiry Screen (“ACEI Screen”) or the Client Organization
Screen (“CCOI Screen”) (collectively the “Automobile Lease Documents”)
obtained from the FSP main frame system. Any discrepancies will be
included as an exception within our report.
	 
	 	ii)	 	With respect to Sample Leases identified as
Financial Services Leases by the Servicer (in the Lease Data Tape, this
is indicated by “FIN SERV” in the Lease Pool field), we will compare the
Characteristics 1 and 2, and 4 through 13 to the corresponding
information set forth on or derived from an obtained copy of screens
from the LeasePlus system. We will compare Characteristics 3 to the CCOI
Screen of the Asset Management System. Any discrepancies will be
included as an exception within our report.

F-2

 

	 	b)	 	For Sample Leases that have an indicator signifying it as a titled asset, we will
obtain a copy of the Certificate of Title from representatives of the Servicer for
all Sample Leases, excluding those Sample Leases that have been identified by the
Servicer as equipment leases, and we will list in an attachment to our report
whether (i) the title owner is D.L. Peterson Trust and (ii) the lien holder is
either Raven Funding LLC or Chesapeake Funding LLC (for vehicles acquired prior to
June 30, 2006), or Chesapeake Funding LLC (for vehicles acquired on or after June
30, 2006) each as set forth on the Certificate of Title. Any discrepancies noted
will be included as an exception within our report.
	 
	 	c)	 	We will obtain a copy of the Master Lease Agreement from
representatives of the Servicer (as an agent of the D.L. Peterson Trust) to observe
that (i) there was a signature included in the area required to be signed by a
representative of the Servicer, and for Sample Lease identified as Vehicle
Management Leases and Financial Services Leases, by the Servicer, (ii) either, the
CP Flex Program Supplement, Treasury Note, Fixed Rate Note, closed-end rate
schedule, or equipment schedule (the “Funding Documentation”) is included. Any
discrepancies will be included as an exception within our report.
	 
	 	d)	 	We will obtain a copy of the credit file (the “Credit File”) from
representatives of the Servicer to observe that the Credit File contained either
a line of credit authorization form or addendum to the line of credit
authorization form that (i) has a signature in the area where an approval
signature is required, (ii) has not expired, (iii) includes a signature in the
area where an analyst’s signature is required, and (iv) if required, includes a
signature in the area where the Vice President of Credit is required or there was
an assumption agreement. Any discrepancies will be included as an exception
within our report.
	 
	 	e)	 	We will obtain a copy of the Certificate of Insurance Coverage (the
“Insurance Coverage”) from representatives of the Servicer to note, on a list
attached to our report, what entity is noted as the loss payee.

	4.	 	We will request from representatives of the Servicer, the Schedule of Settlement Statement
Summary Information (the “Settlement Statement Schedule”) of Chesapeake Funding LLC for two
recent monthly settlement dates. For each amount listed in cells C3 to C83 within the
“Definitions” tab of the Excel based Settlement Statement Schedule, we will compare the
amount to the system of record. Any discrepancies noted will be included as an exception
within our report. Such system of record will be noted in a listing attached to our report.

	5.	 	We will request from representatives of the Servicer, a listing of the five largest
write-offs (including the information detailed in the table below) of receivables relating
to leases allocated to the Lease SUBI for the preceding or current fiscal year or a portion
thereof. This listing will be attached to our report. We will compare the amounts included
within the listing provided to the journal entry by comparing the amount of the write-off,
date of the write-off and whether the amount was expensed or recorded directly as a
reduction to the allowance as noted in the listing to the journal entry obtained from the
Company. Any discrepancies noted will be included as an exception within our report.

     Write-Off Information

	 	1.	 	Amount of write-off
	 
	 	2.	 	Date of write-off
	 
	 	3.	 	Against Allowance
or Directly Expensed
(indicate one or the
other)

	6.	 	We will request from representatives of the Servicer, a listing of the five largest closed
end lease losses (including the information in the table below) upon disposal of a lease for
the preceding or current fiscal year or a portion thereof. This listing will be attached to our
report. We will compare the amount of the loss, the date of the loss and the location where the
loss was recorded as noted in the table to the journal entry obtained from the Company. Any
discrepancies noted will be included as an exception within our report.

F-3

 

     Largest Loss Disposal Information

	 	1.	 	Amount of loss
	 
	 	2.	 	Date of loss recognition
	 
	 	3.	 	Against
Allowance or Directly
Expensed (indicate one
or the other)

	7.	 	We will request from representatives of the Servicer, a listing of the all of the DLPT Leased
Vehicles from a listing provided by the Company of leases that were disposed of in a recent
fiscal month (including the information listed in the table below). This listing will be
attached to our report.

Disposal Information

	1.	 	Date of Disposal
	 
	2.	 	Customer Name
	 
	3.	 	Type of Vehicle
	 
	4.	 	Original Cost
	 
	5.	 	Book Value at Sales Date
	 
	6.	 	Sales Date
	 
	7.	 	Sales Proceeds
	 
	8.	 	Amount of Gain or Loss on Sale for closed end leases or
the amount of the final TRAC adjustment for open end
leases.
	 
	9.	 	Type of Lease (Open-Ended or Closed-Ended)

	 	a)	 	We will randomly select 40 Open-Ended (“Open-Ended Selections”) and 10 Closed-Ended
(“Closed-Ended Selections”) vehicle leases which were disposed of in a recent fiscal
month.
	 
	 	b)	 	We will compare the Date of Disposal (#1), Customer Name (#2), Type of Vehicle (#3),
Original Cost (#4) and Book Value at Sales Date (#5), to information displayed on Asset
Management screens within the FSP Servicing System.
	 
	 	c)	 	We will compare the Sales Date (#6) and Sales Proceeds (#7) to information
displayed on the Asset Management screens within the FSP Serving System.
	 
	 	d)	 	We will recalculate the Amount of Gain or Loss on Sale using the formula: Sales
Proceeds (#7) minus Book Value at Sales Date (#5).
	 
	 	e)	 	We will compare the Amount of Gain or Loss on Sale (#8) to the Final Settlement
Report for the month the vehicle was sold
	 
	 	f)	 	For the Open-Ended Selections with gain/loss noted (from #8), we will compare to the
lease billing as shown in the FSP Servicing System (PHH Interactive) that the final TRAC
adjustment noted was billed or credited to the client’s monthly billing.

	8.	 	We will request from representatives of the Servicer, a current listing of the bank accounts in
which collections are deposited. This listing will be attached to our report. For the largest
depository account in a recent fiscal month, we will obtain the account reconciliation, compare the
reconciliation to the general ledger and note the account reconciliation was reviewed, based on the
presence of a sign-off.

	9.	 	We will request from representatives of the
Servicer, a report for a recent fiscal
month showing collections that were remitted directly to lockboxes and/or bank accounts
pledged to Chesapeake Finance Holdings and the total overall monthly collections. This
listing will be attached to our report. We will recalculate the percentage of pledged
account and/or lockbox collections for Chesapeake Finance Holdings to the overall total
lockbox collection for that fiscal month.

F-4

 

EXHIBIT G

TO SERIES 2010-1

INDENTURE SUPPLEMENT

Form of Supplement to Agreed Upon Procedures Engagement Letter

          JPMorgan Chase Bank, N.A. (“JPMorgan”) as administrative agent and individually (in
such capacities, herein collectively called the “Specified Parties” and individually called a
“Specified Party”) each specifically acknowledges and agrees to the following:

	•	 	The engagement of Deloitte & Touche LLP (“D&T”) by PHH
Vehicle Management Services, LLC, doing business as PHH Arval
(the “Servicer”) pursuant to the engagement letter (including
its attachments, the “engagement letter”) to perform
agreed-upon procedures (the “engagement”) will be conducted in
accordance with attestation standards established by the
American Institute of Certified Public Accountants, subject to
the terms and conditions set forth herein and in the
engagement letter. The specific procedures that D&T is to
perform have been established based on discussions with the
Servicer and are set forth in an appendix to the engagement
letter and made a part hereof.
	 
	•	 	The performance of the agreed-upon procedures will not
constitute an examination conducted in accordance with the
attestation standards, the objective of which is the
expression of an opinion on the computer-generated vehicle
automobile lease data files and related record layouts derived
from the accounting records (the “Lease Data Tape”) maintained
by the Servicer, settlement statements and other requested
lease information (such statements and other lease
information, together with the Lease Data Tape, collectively
called the “Evaluation Materials”). Therefore, D&T will not be
in a position to express, and will not express, an opinion, or
any other form of assurance, with respect to any matters
(including, without limitation, the Evaluation Material) as a
result of performing the agreed-upon procedures.
	 
	•	 	The sufficiency of the procedures is solely the
responsibility of the Servicer and the Specified Parties, as
discussed below. In addition, these procedures may be changed
or modified by mutual agreement among the Servicer, the
Specified Parties, and D&T if, for example, unforeseen
circumstances arise. D&T will promptly discuss any such
circumstances with the Servicer and the Specified Parties and,
likewise, the Specified Parties agree to promptly notify D&T
if modifications to the procedures are requested.
	 
	•	 	The agreed-upon procedures that D&T is to perform at the
request of the Servicer, and with the agreement of D&T, are
limited in nature and do not comprehend all matters relating
to the Evaluation Materials that might be pertinent or
necessary to the Servicer’s and the Specified Parties’
evaluation of the Evaluation Materials. Accordingly, the
procedures should not be taken to supplant other inquiries and
procedures that the Servicer and the Specified Parties should
undertake for the purpose described above.
	 
	•	 	D&T’s report will not extend to any financial statements
of the Servicer or Chesapeake Funding LLC, taken as a whole,
or its internal control for any date or period.
	 
	•	 	The nature, scope, and design of the agreed-upon
procedures that D&T is requested to perform are solely the
responsibility of the Servicer and the Specified Parties.
Furthermore, D&T has no responsibility to advise the Servicer
or the Specified Parties of other procedures that might be

G-1

 

	 	 	performed and makes no representations as to the sufficiency of such procedures for
the purposes of the Servicer or Specified Parties.
	 
	•	 	D&T’s responsibility is limited to performing the
procedures specified and agreed to and to reporting the
resulting findings, subject to the limitations contained
herein, and D&T’s engagement cannot be relied on to disclose
significant deficiencies, material weaknesses, or fraud
should they exist. In addition, D&T’s engagement cannot be
relied on to disclose errors, other than those errors that
may be reported as findings in connection with the
application of the specified agreed-upon procedures. D&T has
no responsibility for updating the procedures performed or
for performing any additional procedures.
	 
	•	 	The Servicer shall be solely responsible for the design
and operation of effective internal control (including,
without limitation, effective internal control over the
Evaluation Material) and for complying with all applicable
laws and regulations.
	 
	•	 	The Servicer shall be solely responsible for providing
accurate and complete information requested by D&T. D&T has
no responsibility for the accuracy or completeness of the
information provided by or on behalf of the Servicer.
	 
	•	 	Immediately prior to the completion of this engagement,
D&T will request that the Servicer’s management provide D&T
with a representation letter acknowledging management’s
responsibility for certain information and confirming
certain representations made to D&T during the engagement.
	 
	•	 	Should D&T determine that significant restrictions
are being placed on the performance of the agreed-upon
procedures by the Servicer or the Specified Parties,
including, without limitation, the failure of management of
the Servicer to provide D&T with a management representation
letter that D&T determines to be satisfactory, D&T shall be
entitled to withdraw from the engagement.

	•	 	Any report issued by D&T hereunder will not be used by or circulated, quoted,
disclosed or distributed to, nor will reference to such report or D&T’s engagement
hereunder be made to, anyone who is not an officer or employee of either the Servicer or
any of the Specified Parties or any of their respective affiliates, who is responsible for
evaluating the Evaluation Materials. Notwithstanding the foregoing, each Specified Party
may provide access to such report to external counsel of the Specified Party, acting
strictly in its capacity as an advisor to the Specified Party with respect to the
transaction described under this engagement letter, provided that the Specified Party shall
ensure that external counsel does not further circulate, quote, disclose or distribute such
report. Notwithstanding the forgoing, the Specified Party may provide access to any such
report to (i) its parent company or its affiliates (provided that such affiliates are
included in the consolidated financial statements of its parent company), (ii) regulatory
authorities having jurisdiction over the business or financial affairs of such Specified
Party or its affiliates solely to the extent that the Specified Party credit file
containing such report is requested by such regulatory authority, (iii) in connection with
legal or administrative proceedings, subject to the notice provisions set forth below.
Should any Specified Party or its affiliates, or any of its or their respective officers or
directors, be required or elect to disclose D&T’s report, in connection with legal or
administrative proceedings, each agrees that they will, prior to making or permitting any
such disclosure, provide D&T with prompt written notice of the proposed disclosure, to the
extent permitted by law, so that D&T shall have reasonable opportunity to obtain a
protective order or other appropriate remedy with respect to such disclosure. Each of the
Specified Parties and their respective affiliates will use their best efforts to minimize
the extent of such disclosure. For the purposes of this paragraph, the term “affiliate”
shall mean, with respect to any Specified Party,

G-2

 

	 	 	 	any entity controlled by, under common control with, or controlling such Specified
Party and included in the consolidated financial statements of such Specified Party.
	 
	 	•	 	We acknowledge that the Audit Committee of PHH Corporation (the “Audit
Committee”) is directly responsible for the appointment, compensation, and oversight
of our work and, accordingly, except as otherwise specifically noted, we will report
directly to the Audit Committee. You have advised us that the services to be performed
under this engagement letter, including, where applicable, the use by D&T of affiliates
or related entities as subcontractors in connection with this engagement, have been
approved by the Audit Committee in accordance with the Audit Committee’s pre-approval
policies and procedures.
	 
	 	•	 	Our estimated professional fees are expected to be within the range of $55,000
to $70,000 based on our understanding of the procedures the Servicer and the other
Specified Parties has requested us to perform, the proposed scope and approach. If we
anticipate additional charges for reasons beyond our control, we will discuss the matter
with your before we proceed. We do not anticipate significant out-of-pocket expenses.
	 
	 	•	 	Our fees will be payable upon receipt of our invoice for the procedures
described herein.

Accepted and agreed to by JPMorgan Chase Bank, N.A.

Individually and as Administrative Agent:

	 	 	 	 	 

	By:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	Title:  
	 	 
	 

	 	Date:  
	 	 

G-3

 

EXHIBIT H

TO SERIES 2010-1

INDENTURE SUPPLEMENT

UCC CERTIFICATE

          The undersigned, an Authorized Officer of [___] (the “Company”), refers to
(i) the Amended and Restated Base Indenture, dated as of December 17, 2008, as amended as of May
28, 2009 (the “Base Indenture”), between Chesapeake Funding LLC, as issuer (the
“Issuer”), and The Bank of New York Mellon, as indenture trustee (the “Indenture
Trustee”), and (ii) the Series 2010-1 Indenture Supplement to the Base Indenture, dated as of June
1, 2010, among the Issuer, PHH Vehicle Management Services, LLC, as Administrator, the Non-Conduit
Purchasers, the CP Conduit Purchaser Groups, the Funding Agents and the Class B Note Purchasers
from time to time parties thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the
Indenture Trustee (the “Series 2010-1 Indenture Supplement”; collectively with the Base
Indenture, the “Indenture”; terms used but not defined herein have the meanings given them
in the Indenture), and, in connection therewith and with the transaction contemplated by the other
Transaction Documents, hereby certifies as follows:

          1. Jurisdiction of Organization. The Company’s jurisdiction of organization is and
always has been Delaware.

          2. Names. (a) The exact name of the Company, as such name appears in its certificate
of formation, is [___].

          (a) Set forth below is each other legal name the Company has had since its
organization, together with the date of the relevant change:

          (b) Except as set forth in Schedule A hereto, the Company has not changed its identity or
corporate structure in any way within the past five years.

          (c) The following is a list of all other names (including trade names or similar
appellations) used by the Company or any of its divisions or other business units in connection
with the conduct of its business or the ownership of its properties at any time during the past
five years:

          3. Location and Mailing Address. The mailing address and principal place of
business of the Company since it organization is the following:

	 	 	 	 	 	 	 
	Name	 	Mailing Address	 	County	 	State
	 
	 	 	 	 	 	 

          4. Federal Taxpayer Identification Number. The following is the Company’s
Federal Taxpayer Identification Number: ___.

          5. Schedule or Filings. Attached hereto as Schedule B is a schedule
setting

 

 

forth each filing office in which a filing by the Company, as debtor, of a financing
statement on Form UCC-1 is to be made in connection with the transactions contemplated by the
Transaction Documents.

          IN WITNESS WHEREOF, the undersigned has hereunto executed this certificate this 1st day of
June, 2010.

	 	 	 	 	 
	 	[NAME OF COMPANY]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

H-2

 

	 	 	 	 	 

SCHEDULE A

 

 

SCHEDULE B

2

 

EXHIBIT I

TO SERIES 2010-1

INDENTURE SUPPLEMENT

FORM OF TRANSFER SUPPLEMENT

          TRANSFER SUPPLEMENT,
dated as of _________ ___, ___ among [NAME OF APA BANK] (the
“Transferor”), each purchaser listed as an Acquiring APA Bank on the signature pages
hereof (each, an “Acquiring APA Bank”), the Funding Agent with respect to the Transferor
and such Acquiring APA Bank(s) listed in the signature pages hereof (the “Funding
Agent”), CHESAPEAKE FUNDING LLC, a Delaware limited liability company (the
“Issuer”), JPMORGAN CHASE BANK, N.A., as Administrative Agent (in such capacity,
the “Administrative Agent”) and PHH VEHICLE MANAGEMENT SERVICES, LLC, as Administrator
(in such capacity, the “Administrator”).

WITNESSETH:

     WHEREAS, this Transfer Supplement is being executed and delivered in accordance with
subsection 12.10(c) of the Series 2010-1 Indenture Supplement dated as of June 1, 2010 (as from
time to time amended, supplemented or otherwise modified in accordance with the terms thereof, the
“Indenture Supplement”; terms defined therein being used herein as therein defined) among
the Issuer, the Administrator, the Non-Conduit Purchasers, the CP Conduit Purchaser Groups, the
Funding Agents and the Class B Note Purchasers from time to time parties thereto, the
Administrative Agent and The Bank of New York Mellon as Indenture Trustee (the “Indenture
Trustee”), to the Amended and Restated Base Indenture dated as of December 17, 2008 (as the
same may be from time to time amended, supplemented or otherwise modified, the “Base
Indenture” and, together with the Indenture Supplement, the “Indenture”), between the
Issuer and the Indenture Trustee;

          WHEREAS, each Acquiring APA Bank (if it is not already an existing APA Bank) wishes to
become an APA Bank party to the Indenture Supplement; and

          WHEREAS, the Transferor is selling and assigning to each Acquiring APA Bank, rights,
obligations and commitments under the Indenture Supplement and the Class A Investor Notes;

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

          1. Upon the execution and delivery of this Transfer Supplement by each Acquiring APA
Bank, the Funding Agent, the Transferor, the Issuer, the Administrator and the Administrative
Agent (the date of such execution and delivery, the “Transfer Effective Date”), each
Acquiring APA Bank shall be an Acquiring APA Bank party to the Indenture Supplement

I-1

 

for all purposes thereof and shall be entitled to all of the respective rights and
privileges, and subject to all of the respective duties and obligations thereof.

          2. The Transferor acknowledges receipt from each Acquiring APA Bank of an amount equal to the
purchase price, as agreed between the Transferor and such Acquiring APA Bank and set forth on
Schedule I hereto (the “Purchase Price”), for the percentage being purchased by such
Acquiring APA Bank set forth on Schedule I hereto (such Acquiring APA Bank’s “Purchased
Percentage”) of the Transferor’s APA Bank Percentage of the Class A Maximum Purchaser Group
Invested Amount with respect to the CP Conduit Purchaser Group of which the Transferor is a member
under the Indenture Supplement [ADD IF APPLICABLE: and the Transferor’s APA Bank Percentage of the
APA Bank Funded Amount with respect to such CP Conduit Purchaser Group] [, in each case,] in the
amount set forth on Schedule I hereto. The Transferor hereby irrevocably sells, assigns and
transfers to each Acquiring APA Bank, without recourse, representation or warranty (other than as
set forth below), and each Acquiring APA Bank hereby irrevocably purchases, takes and assumes from
the Transferor, such Acquiring APA Bank’s Purchased Percentage of the Transferor’s APA Bank
Percentage of the Class A Maximum Purchaser Group Invested Amount with respect to the CP Conduit
Purchaser Group of which the Transferor is a member under the Indenture Supplement [ADD IF
APPLICABLE: and the Transferor’s APA Bank Percentage of the APA Bank Funded Amount with respect to
such CP Conduit Purchaser Group].

          3. From and after the Transfer Effective Date, amounts that would otherwise be payable to or
for the account of the Transferor in respect of each Acquiring APA Bank’s Purchased Percentage of
the Transferor’s APA Bank Percentage of the Class A Maximum Purchaser Group Invested Amount with
respect to the CP Conduit Purchaser Group of which the Transferor is a member [and the
Transferor’s APA Bank Percentage of the APA Bank Funded Amount with respect to such CP Conduit
Purchaser Group] pursuant to the Indenture Supplement shall, instead, be payable to or for the
account of such Acquiring APA Bank. The Transferor and each Acquiring APA Bank hereby agree that
all Commitment Fees that accrued prior to the Transfer Effective Date in respect of such Acquiring
APA Bank’s Purchased Percentage of the Transferor’s APA Bank Percentage of the Class A Maximum
Purchaser Group Invested Amount with respect to the CP Conduit Purchaser Group of which the
Transferor is a member [and all Class A Monthly Interest that accrued prior to the Transfer
Effective Date in respect of such Acquiring APA Bank’s Purchased Percentage of the Transferor’s
APA Bank Percentage of the APA Bank Funded Amount with respect to such CP Conduit Purchaser Group]
shall be payable by the Administrative Agent to the Transferor on the [                    ] Payment Date.

          4. Each of the parties to this Transfer Supplement 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 Transfer Supplement.

          5. By executing and delivering this Transfer Supplement, the Transferor and each
Acquiring APA Bank confirm to and agree with each other and the APA Banks as follows:
(i) other than the representation and warranty that it is the legal and beneficial
owner of the

I-2

 

          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 Indenture Supplement or the execution,
legality, validity, enforceability, genuineness, sufficiency or value of the Indenture, the Class A
Investor Notes, the Transaction 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 the Issuer, Holdings, VMS or the Origination Trust or the performance
or observance by the Issuer, Holdings, VMS or the Origination Trust of any of their obligations
under the Indenture, the Transaction Documents or any other instrument or document furnished
pursuant hereto; (iii) each Acquiring APA Bank confirms that it has received a copy of the
Indenture and such other Transaction Documents and other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this Transfer Supplement;
(iv) each Acquiring APA Bank will, independently and without reliance upon the Administrative
Agent, the Transferor or any other member of a Purchaser Group 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 Indenture; (v) each Acquiring APA Bank appoints and
authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such
powers under the Indenture Supplement as are delegated to the Administrative Agent by the terms
thereof, together with such powers as are reasonably incidental thereto, all in accordance with
Article 10 of the Indenture Supplement; (vi) each Acquiring APA Bank appoints and authorizes the
Funding Agent to take such action as agent on its behalf and to exercise such powers under the
Indenture Supplement as are delegated to the Funding Agent by the terms thereof, together with such
powers as are reasonably incidental thereto, all in accordance with Article 11 of the Indenture
Supplement; (vii) each Acquiring APA Bank agrees that it will perform in accordance with their
terms all of the obligations which by the terms of the Indenture are required to be performed by it
as an Acquiring APA Bank and (viii) each Acquiring APA Bank confirms that it is an Eligible
Assignee.

          6. Schedule I hereto sets forth the Transferor’s revised APA Bank Percentage of the Class A
Maximum Purchaser Group Invested Amount of the CP Conduit Purchaser Group of which the Transferor
is a member [and] [, the Transferor’s revised APA Bank Percentage of the APA Bank Funded Amount of
such CP Conduit Purchaser Group], the Acquiring APA Bank’s APA Bank Percentage of the Class A
Maximum Purchaser Group Invested Amount of such CP Conduit Purchaser Group [and the Acquiring APA
Bank’s APA Bank Percentage of the APA Bank Funded Amount of such CP Conduit Purchaser Group] as
well as administrative information with respect to the Acquiring APA Bank.

          7. From and after the Transfer Effective Date, (a) the Acquiring APA Bank shall be a party to
the Indenture Supplement and, to the extent provided in this Transfer Supplement, have the rights
and obligations of an APA Bank thereunder and shall be bound by the provisions thereof and (b) the
Transferor shall, to the extent provided in this Transfer Supplement, relinquish its rights and be
released from its obligations under the Indenture Supplement.

          8. [The Acquiring APA Bank is an “accredited investor”, as such term is defined in Rule
501(d) of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”).] [The
Acquiring APA Bank is a “qualified institutional buyer” within the meaning of Rule

I-3

 

          144A under the Securities Act of 1933, as amended (the “Securities Act”), and is aware that
the sale or transfer to it is being made in reliance on Rule 144A and acknowledges that it has
received such information regarding the Issuer as such transferee has requested pursuant to Rule
144A or has determined not to request such information and that it is aware that the transferor is
relying upon its foregoing representations in order to claim the exemption from registration
provided by Rule 144A].

          9. This Transfer Supplement shall be governed by, and construed in accordance with, the laws
of the State of New York.

I-4

 

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

	 	 	 	 	 
	 	[NAME OF SELLING APA BANK], as

Transferor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[NAME OF ACQUIRING APA BANK], as

Acquiring APA Bank

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[NAME OF FUNDING AGENT], as

Funding Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

CONSENTED AND ACKNOWLEDGED:

CHESAPEAKE FUNDING LLC

	 	 	 	 	 
	 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

I-5

 

	 	 	 	 	 

	 	 	 	 	 
	PHH VEHICLE MANAGEMENT SERVICES, LLC,

as Administrator

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

	 	 	 	 	 
	JPMORGAN CHASE BANK, N.A., as Administrative Agent

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

I-6

 

	 	 	 	 	 

Schedule I

to Transfer Supplement

relating to the Series 2010-1 Indenture Supplement

dated as of June 1, 2010

among Chesapeake Funding LLC,

PHH Vehicle Management Services, LLC, as Administrator,

the Non-Conduit Purchasers named therein,

the CP Conduit Purchaser Groups named therein,

the Funding Agents Named Therein,

the Class B Note Purchasers Named Therein,

JPMorgan Chase Bank, N.A.,

as Administrative Agent, and

The Bank of New York Mellon,

as Indenture Trustee,

to the Amended and Restated Base Indenture dated as of December 17, 2008

between Chesapeake Funding LLC and

The Bank of New York Mellon,

as Indenture Trustee

 

Name of Transferor:

Name of Acquiring APA Bank:

Transfer Effective Date:

Purchased Percentage:

Purchase Price:

Transferor’s APA Bank Percentage of the Class A Maximum Purchaser Group Invested Amount
Assigned/Acquiring APA Bank’s APA Bank Percentage of the Class A Maximum Purchaser Group Invested
Amount:

[Transferor’s APA Bank Percentage of the APA Bank Funded Amount Assigned/Acquiring APA
Bank’s APA Bank Percentage of the APA Bank Funded Amount: ]

Acquiring APA Bank’s APA Bank Percentage:

Revised Transferor’s APA Bank Percentage:

Acquiring APA Bank’s APA Bank Percentage of the Class A Maximum Purchaser Group Invested
Amount:

Revised Transferor’s APA Bank Percentage of the Class A Maximum Purchaser Group Invested Amount:

I-7

 

Address of Acquiring APA Bank:

I-8

 

EXHIBIT J

TO SERIES 2010-1

INDENTURE SUPPLEMENT

FORM OF PURCHASER GROUP SUPPLEMENT

          PURCHASER GROUP SUPPLEMENT,
dated as of                     , ___
among [NAME OF NON-CONDUIT PURCHASER] [[NAME OF CP CONDUIT PURCHASER] and [NAME OF APA BANK[S]]]
(collectively, the “Transferor Purchaser Group”), [the Non-Conduit Purchaser]
[the CP Conduit Purchaser and the APA Bank or Banks] listed as the Acquiring Purchaser
Group on the signature pages hereof (collectively, the “Acquiring Purchaser Group”), [the
Funding Agent with respect to such Acquiring Purchaser Group listed in the signature pages hereof
(a “Funding Agent”),] CHESAPEAKE FUNDING LLC, a Delaware limited liability company (the
“Issuer”), JPMORGAN CHASE BANK, N.A., as Administrative Agent (in such capacity, the
“Administrative Agent”), and PHH VEHICLE MANAGEMENT SERVICES, LLC, as Administrator (in
such capacity, the “Administrator”).

WITNESSETH:

          WHEREAS, this Purchaser Group Supplement is being executed and delivered in accordance with
Section 12.10(e) of the Series 2010-1 Indenture Supplement dated as of June 1, 2010 (as from time
to time amended, supplemented or otherwise modified in accordance with the terms thereof, the
“Indenture Supplement”; terms defined therein being used herein as therein defined) among
the Issuer, the Administrator, the Non-Conduit Purchasers, the CP Conduit Purchaser Groups, the
Funding Agents and the Class B Note Purchasers from time to time parties thereto, the
Administrative Agent and The Bank of New York Mellon, as Indenture Trustee (the “Indenture
Trustee”), to the Amended and Restated Base Indenture dated as of December 17, 2008 (as the
same may be from time to time amended, supplemented or otherwise modified, the “Base
Indenture” and, together with the Indenture Supplement, the “Indenture”), between the
Issuer and the Indenture Trustee;

          WHEREAS, the Acquiring Purchaser Group wishes to become a [Non-Conduit Purchaser] [CP
Conduit Purchaser and the APA Bank[s] with respect to such CP Conduit Purchaser] and party to
the Indenture Supplement; and

          WHEREAS, the Transferor Purchaser Group is selling and assigning to the Acquiring
Purchaser Group a portion of their respective rights, obligations and commitments under the
Indenture Supplement and the Class A Investor Notes;

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

          1. Upon the execution and delivery of this Purchaser Group Supplement by the Acquiring
Purchaser Group[, the Funding Agent with respect thereto,] the Transferor Purchaser Group, the
Issuer, the Administrator and the Administrative Agent (the date of such execution and delivery,
the “Transfer Effective Date”), the Acquiring Purchaser Group shall be a [Non-

J-1

 

Conduit Purchaser] [CP Conduit Purchaser and the APA Bank with respect to such CP Conduit
Purchaser] under the Indenture Supplement for all purposes thereof and shall be entitled to all
of the respective rights and privileges, and subject to all of the respective duties and
obligations thereof.

          2. The Transferor Purchaser Group acknowledges receipt from the Acquiring Purchaser Group of
an amount equal to the purchase price, as agreed between the Transferor Purchaser Group and such
Acquiring Purchaser Group and set forth on Schedule I hereto (the “Purchase Price”), for
the percentage being purchased by such Acquiring Purchaser Group set forth on Schedule I hereto
(such Acquiring Purchaser Group’s “Purchased Percentage”) of the Transferor Purchaser
Group’s Class A Maximum Purchaser Group Invested Amount and the Transferor Purchaser Group’s
Purchaser Group Invested Amount, in each case, in the amount set forth on Schedule I hereto. The
Transferor Purchaser Group hereby irrevocably sells, assigns and transfers to the Acquiring
Purchaser Group, without recourse, representation or warranty (other than as set forth below), and
the Acquiring Purchaser Group hereby irrevocably purchases, takes and assumes from the Transferor
Purchaser Group, the Purchased Percentage of the Transferor Purchaser Group’s Class A Maximum
Purchaser Group Invested Amount and Purchaser Group Invested Amount under the Indenture
Supplement.

          3. From and after the Transfer Effective Date, amounts that would otherwise be payable to or
for the account of the Transferor Purchaser Group in respect of the Purchased Percentage of the
Transferor Purchaser Group’s Class A Maximum Purchaser Group Invested Amount and Purchaser Group
Invested Amount pursuant to the Indenture Supplement shall, instead, be payable to or for the
account of the Acquiring Purchaser Group. The Transferor Purchaser Group and the Acquiring
Purchaser Group hereby agree that all Commitment Fees that accrued prior to the Transfer Effective
Date in respect of the Purchased Percentage of the Transferor Purchaser Group’s Class A Maximum
Purchaser Group Invested Amount and all Class A Monthly Interest that accrued prior to the Transfer
Effective Date in respect of the Purchased Percentage of the Transferor Purchaser Group’s Purchaser
Group Invested Amount shall be payable by the Administrative Agent to the Transferor Purchaser
Group on the [                    ] Payment Date.

          4. Each of the parties to this Purchaser Group Supplement 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 Purchaser Group Supplement.

          5. By executing and delivering this Purchaser Group Supplement, the Transferor Purchaser
Group and the Acquiring Purchaser Group confirm to and agree with each other 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 Purchaser Group makes no
representation or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with the Indenture Supplement or the
execution, legality, validity, enforceability, genuineness, sufficiency or value of the Indenture,
the Class A Investor Notes, the Transaction Documents or any instrument or document furnished
pursuant thereto; (ii) the Transferor Purchaser Group makes no representation or warranty and
assumes no responsibility with respect to the financial condition

J-2

 

of the Issuer, Holdings, VMS or the Origination Trust or the performance or observance by
the Issuer, Holdings, VMS or the Origination Trust of any of their obligations under the
Indenture, the Transaction Documents or any other instrument or document furnished pursuant
hereto; (iii) each Acquiring Purchaser Group confirms that it has received a copy of the
Indenture and such other Transaction Documents and other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into this Purchaser
Group Supplement; (iv) each Acquiring Purchaser Group will, independently and without reliance upon the
Administrative Agent, the Transferor Purchaser Group or any other Purchaser Group 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 Indenture; (v) the Acquiring Purchaser
Group appoints and authorizes the Administrative Agent to take such action as agent on its behalf
and to exercise such powers under the Indenture Supplement as are delegated to the Administrative
Agent by the terms thereof, together with such powers as are reasonably incidental thereto, all in
accordance with Article 10 of the Indenture Supplement; (vi) [the Acquiring Purchaser Group
appoints and authorizes the Funding Agent with respect to the Acquiring Purchaser Group to take
such action as agent on its behalf and to exercise such powers under the Indenture Supplement as
are delegated to the Funding Agent with respect to the Acquiring Purchaser Group by the terms
thereof, together with such powers as are reasonably incidental thereto, all in accordance with
Article 11 of the Indenture Supplement; (vii)] each Acquiring Purchaser Group agrees that it will
perform in accordance with their terms all of the obligations which by the terms of the Indenture
are required to be performed by it as an Acquiring Purchaser Group and (viii) each Acquiring
Purchaser Group confirms that it is an Eligible Assignee.

          6. Schedule I hereto sets forth the revised Class A Maximum Purchaser Group Invested Amount
and Purchaser Group Invested Amount of the Transferor Purchaser Group and the Class A Maximum
Purchaser Group Invested Amount and Purchaser Group Invested Amount of the Acquiring Purchaser
Group as well as administrative information with respect to the Acquiring Purchaser Group [and
its Funding Agent].

          7. From and after the Transfer Effective Date, (a) the Acquiring Purchaser Group shall be a
party to the Indenture Supplement and, to the extent provided in this Purchaser Group Supplement,
have the rights and obligations of a [Non-Conduit Purchaser] [CP Conduit Purchaser and an APA Bank]
thereunder and shall be bound by the provisions thereof and (b) the Transferor Purchaser Group
shall, to the extent provided in this Purchaser Group Supplement, relinquish its rights and be
released from its obligations under the Indenture Supplement.

          8. [Each member of the Acquiring Purchaser Group is an “accredited investor”, as such term is
defined in Rule 501(d) of Regulation D under the Securities Act of 1933, as amended (the
“Securities Act”).] [Each member of the Acquiring Purchaser Group is a “qualified institutional
buyer” within the meaning of Rule 144A under the Securities Act of 1933, as amended (the
“Securities Act”), and is aware that the sale or transfer to it is being made in reliance on Rule
144A and acknowledges that it has received such information regarding the Issuer as such
transferee has requested pursuant to Rule 144A or has determined not to request such information
and that it is aware that the transferor is relying upon its foregoing representations in order to
claim the exemption from registration provided by Rule 144A].

J-3

 

          9. This Purchaser Group Supplement shall be governed by, and construed in accordance
with, the laws of the State of New York.

J-4

 

     IN WITNESS WHEREOF, the parties hereto have caused this Purchaser Group Supplement to
be executed by their respective duly authorized officers as of the date first set forth above.

	 	 	 	 	 
	 	[Name of [Non-Conduit Purchaser] [CP Conduit

Purchaser]], as Transferor Purchaser

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	[[Name of APA Bank], as Transferor Purchaser

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	] 	 
	 

	 	 	 	 	 
	 	[Name of [Non-Conduit Purchaser] [CP Conduit

Purchaser]] as Acquiring Purchaser

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	[[Name of APA Bank], as Acquiring Purchaser

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	[Name of Funding Agent], as Funding Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	] 	 

J-5

 

	 	 	 	 	 

CONSENTED AND ACKNOWLEDGED:

CHESAPEAKE FUNDING LLC

	 	 	 	 	 
	 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

	 	 	 	 	 
	PHH VEHICLE MANAGEMENT SERVICES, LLC, as

Administrator

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

	 	 	 	 	 
	JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

J-6

 

	 	 	 	 	 

Schedule I

to Purchaser Group Supplement

relating to the Series 2010-1 Indenture Supplement

dated as of June 1, 2010 among

Chesapeake Funding LLC,

PHH Vehicle Management Services, LLC, as Administrator,

the Non-Conduit Purchasers named therein,

the CP Conduit Purchaser Groups named therein,

the Funding Agents Named Therein,

The Class B Note Purchasers Named Therein,

JPMorgan Chase Bank, N.A.,

as Administrative Agent, and

The Bank of New York Mellon,

as Indenture Trustee,

to the Amended and Restated Base Indenture dated as of December 17, 2008

between Chesapeake Funding LLC and

The Bank of New York Mellon,

as Indenture Trustee

Name of Transferor Purchaser Group/[Non-Conduit Purchaser] [CP Conduit Purchaser]:

[Name of Transferor Purchaser Group/APA Bank[s]:          ]

Name of Acquiring Purchaser Group/[Non-Conduit Purchaser] [CP Conduit Purchaser]:

[Name of Acquiring Purchaser Group/APA Bank[s]:          ]

Transfer Effective Date:

Purchased Percentage:

Purchase Price:

Purchaser Group Invested Amount Assigned/Acquiring Purchaser Group’s Purchaser Group Invested
Amount:

Class A Maximum Purchaser Group Invested Amount Assigned/Acquiring Purchaser Group’s Class A
Maximum Purchaser Group Invested Amount:

[APA Bank Percentage of each APA Bank in the Acquiring Purchaser Group:                    ]

Revised Purchaser Group Invested Amount of Transferor Purchaser Group:

Revised Class A Maximum Purchaser Group Invested Amount of Transferor Purchaser Group:

J-7

 

Address of Acquiring Purchaser Group/[Non-Conduit Purchaser] [CP Conduit Purchaser]:

[Address of Acquiring Purchaser Group/APA Bank[s]:

Address of Acquiring Purchaser Group’s Funding Agent:               ]

 

 

EXHIBIT K

TO SERIES 2010-1

INDENTURE SUPPLEMENT

FORM OF CLASS B NOTE TRANSFER SUPPLEMENT

          CLASS B NOTE TRANSFER SUPPLEMENT, dated as of 
                    ,
___among [NAME OF CLASS B NOTE PURCHASER] (the “Transferor Class B Note
Purchaser”), the Class B Note Purchaser listed as the Acquiring Class B Note Purchaser
on the signature page hereof (the “Acquiring Class B Note Purchaser”),
CHESAPEAKE FUNDING LLC, a Delaware limited liability company (the “Issuer”), and PHH
VEHICLE MANAGEMENT SERVICES, LLC, as Administrator (in such capacity, the
“Administrator”).

WITNESSETH:

          WHEREAS, this Class B Note Transfer Supplement is being executed and delivered in accordance
with Section 12.10(f) of the Series 2010-1 Indenture Supplement dated as of June 1, 2010 (as from
time to time amended, supplemented or otherwise modified in accordance with the terms thereof, the
“Indenture Supplement”; terms defined therein being used herein as therein defined) among
the Issuer, the Administrator, the Non-Conduit Purchasers, the CP Conduit Purchaser Groups, the
Funding Agents and the Class B Note Purchasers from time to time parties thereto, the
Administrative Agent and The Bank of New York Mellon, as Indenture Trustee (the “Indenture
Trustee”), to the Amended and Restated Base Indenture dated as of December 17, 2008 (as the
same may be from time to time amended, supplemented or otherwise modified, the “Base
Indenture” and, together with the Indenture Supplement, the “Indenture”), between the
Issuer and the Indenture Trustee;

          WHEREAS, the Acquiring Class B Note Purchaser wishes to become a Class B Note Purchaser and
party to the Indenture Supplement; and

          WHEREAS, the Transferor Class B Note Purchaser is selling and assigning to the Acquiring
Class B Note Purchaser a portion of its rights, obligations and commitments under the Indenture
Supplement and the Class B Investor Notes;

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

          1. Upon the execution and delivery of this Class B Note Transfer Supplement by the Acquiring
Class B Note Purchaser, the Issuer and the Administrator (the date of such execution and delivery,
the “Transfer Effective Date”), the Acquiring Class B Note Purchaser shall be a Class B
Note Purchaser under the Indenture Supplement for all purposes thereof and shall be entitled to
all of the respective rights and privileges, and subject to all of the respective duties and
obligations thereof.

K-1

 

          2. The Transferor Class B Note Purchaser acknowledges receipt from the Acquiring Class
B Note Purchaser of an amount equal to the purchase price, as agreed between the Transferor Class
B Note Purchaser and such Acquiring Class B Note Purchaser and set forth on Schedule I hereto
(the “Purchase Price”), for the percentage being purchased by such Acquiring Class B Note
Purchaser set forth on Schedule I hereto (such Acquiring Class B Note Purchaser’s “Purchased
Percentage”) of the Transferor Class B Note Purchaser’s Class B Invested Amount in the amount
set forth on Schedule I hereto. The Transferor Class B Note Purchaser hereby irrevocably sells,
assigns and transfers to the Acquiring Class B Note Purchaser, without recourse, representation
or warranty (other than as set forth below), and the Acquiring Class B Note Purchaser hereby
irrevocably purchases, takes and assumes from the Transferor Class B Note Purchaser, the
Purchased Percentage of the Transferor Class B Note Purchaser’s Class B Invested Amount under the
Indenture Supplement.

          3. From and after the Transfer Effective Date, amounts that would otherwise be payable to or
for the account of the Transferor Class B Note Purchaser in respect of the Purchased Percentage of
the Transferor Class B Note Purchaser’s Class B Invested Amount pursuant to the Indenture
Supplement shall, instead, be payable to or for the account of the Acquiring Class B Note
Purchaser. The Transferor Class B Note Purchaser and the Acquiring Class B Note Purchaser hereby
agree that all Class B Monthly Interest that accrued prior to the Transfer Effective Date in
respect of the Purchased Percentage of the Transferor Class B Note Purchaser’s Class B Invested
Amount shall be payable by the Indenture Trustee to the Transferor Class B Note Purchaser on the
[                    ] Payment Date.

          4. Each of the parties to this Class B Note Transfer Supplement 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 Class B Note Transfer Supplement.

          5. By executing and delivering this Class B Note Transfer Supplement, the Transferor
Class B Note Purchaser and the Acquiring Class B Note Purchaser confirm to and agree with each
other 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 Class B Note Purchaser makes no representation or warranty and assumes no responsibility
with respect to any statements, warranties or representations made in or in connection with the
Indenture Supplement or the execution, legality, validity, enforceability, genuineness, sufficiency
or value of the Indenture, the Class B Investor Notes, the Transaction Documents or any instrument
or document furnished pursuant thereto; (ii) the Transferor Class B Note Purchaser makes no
representation or warranty and assumes no responsibility with respect to the financial condition of
the Issuer, Holdings, VMS or the Origination Trust or the performance or observance by the Issuer,
Holdings, VMS or the Origination Trust of any of their obligations under the Indenture, the
Transaction Documents or any other instrument or document furnished pursuant hereto; (iii) each
Acquiring Class B Note Purchaser confirms that it has received a copy of the Indenture and such
other Transaction Documents and other documents and information as it has deemed appropriate to
make its own credit analysis and decision to enter into this Class B Note Transfer Supplement; (iv)
each Acquiring Class B Note Purchaser will, independently and without reliance upon the Transferor
Class B Note Purchaser and based

K-2

 

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 Indenture; and (v) the Acquiring
Class B Note Purchaser agrees that it will perform in accordance with their terms all of the
obligations which by the terms of the Indenture are required to be performed by it as an Acquiring
Class B Note Purchaser.

          6. Schedule I hereto sets forth the revised Class B Invested Amount of the Transferor Class B
Note Purchaser and the Class B Invested Amount of the Acquiring Class B Note Purchaser as well as
administrative information with respect to the Acquiring Class B Note Purchaser.

          7. From and after the Transfer Effective Date, (a) the Acquiring Class B Note Purchaser shall
be a party to the Indenture Supplement and, to the extent provided in this Class B Note Transfer
Supplement, have the rights and obligations of a Class B Note Purchaser thereunder and shall be
bound by the provisions thereof and (b) the Transferor Class B Note Purchaser shall, to the extent
provided in this Class B Note Transfer Supplement, relinquish its rights and be released from its
obligations under the Indenture Supplement.

          8. [The Acquiring Class B Note Purchaser is an “accredited investor”, as such term is defined
in Rule 501(d) of Regulation D under the Securities Act of 1933, as amended (the “Securities
Act”).] [The Acquiring Class B Note Purchaser is a “qualified institutional buyer” within the
meaning of Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and is
aware that the sale or transfer to it is being made in reliance on Rule 144A and acknowledges that
it has received such information regarding the Issuer as such transferee has requested pursuant to
Rule 144A or has determined not to request such information and that it is aware that the
transferor is relying upon its foregoing representations in order to claim the exemption from
registration provided by Rule 144A].

          9. This Class B Note Transfer Supplement shall be governed by, and construed in accordance
with, the laws of the State of New York.

K-3

 

     IN WITNESS WHEREOF, the parties hereto have caused this Class B Note Transfer
Supplement to be executed by their respective duly authorized officers as of the date first
set forth above.

	 	 	 	 	 
	 	[Name of Class B Note Purchaser], as Transferor

Class B Note Purchaser

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 

	 	 	 	 	 
	 	[Name of Class B Note Purchaser], as Class B Note

Purchaser

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 

K-4

 

CONSENTED AND ACKNOWLEDGED:

CHESAPEAKE FUNDING LLC

	 	 	 	 	 
	 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

	 	 	 	 	 
	PHH VEHICLE MANAGEMENT SERVICES, LLC,

as Administrator

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

K-5

 

	 	 	 	 	 

Schedule I

to Class B Note Transfer Supplement

relating to the Series 2010-1 Indenture Supplement

dated as of June 1, 2010 among

Chesapeake Funding LLC,

PHH Vehicle Management Services, LLC, as Administrator,

the Non-Conduit Purchasers named therein,

the CP Conduit Purchaser Groups named therein,

the Funding Agents Named Therein,

The Class B Note Purchasers Named Therein,

JPMorgan Chase Bank, N.A.,

as Administrative Agent, and

The Bank of New York Mellon,

as Indenture Trustee,

to the Amended and Restated Base Indenture dated as of December 17, 2008

between Chesapeake Funding LLC and

The Bank of New York Mellon,

as Indenture Trustee

Name of Transferor Class B Note Purchaser:

Name of Acquiring Class B Note Purchaser:

Transfer Effective Date:

Purchased Percentage:

Purchase Price:

Class B Invested Amount Assigned/Acquiring Class B Note Purchaser’s Class B Invested Amount:

Revised Class B Invested Amount of Transferor Class B Note Purchaser:

K-vi

 

Address of Acquiring Class B Note Purchaser:

K-viiexv4w4w12

Exhibit 4.4.12

SERIES 2010-1 FLOATING RATE ASSET BACKED VARIABLE FUNDING

INVESTOR NOTE, CLASS A

     CHESAPEAKE FUNDING LLC, a limited liability company formed under the laws of the State of
Delaware (the “Issuer”), for value received, hereby promises to pay to                     , [as Funding
Agent], or registered assigns, the principal sum of (a) $[                    ] or, if less, (b) the
outstanding Purchaser Group Invested Amount for the related Purchaser Group, which principal sum
shall be payable in the amounts and at the times set forth in the Indenture described herein,
provided, however, that the entire unpaid principal amount of this Class A Investor
Note shall be due on the Final Maturity Date. The Issuer will pay interest on the outstanding
principal amount of this Class A Investor Note in accordance with the terms of the Indenture. Such
interest shall be payable on each Payment Date until the principal of this Class A Investor Note is
paid or made available for payment. The principal amount of this Class A Investor Note shall be
subject to Increases and Decreases on any Business Day as set forth in the Indenture, and
accordingly, such principal amount is subject to prepayment at any time. Prior to the commencement
of the Series 2010-1 Amortization Period, other than as a result of a Decrease, only interest
payments on the outstanding principal amount of the Class A Investor Note are required to be made
to the holder hereof. Beginning on the first Payment Date following the commencement of the Series
2010-1 Amortization Period, subject to Decreases on any Business Day, the principal of this Class A
Investor 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
Class A Investor Note shall be paid in the manner specified on the reverse hereof.

     The principal of and interest on this Class A Investor 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 Issuer with respect to this Class A Investor
Note shall be applied first to interest due and payable on this Class A Investor Note as provided
in the Indenture and then to the unpaid principal of this Class A Investor Note. This Class A
Investor Note does not represent an interest in, or an obligation of, PHH Vehicle Management
Services, LLC (“VMS”) or any affiliate of VMS other than the Issuer.

     Reference is made to the further provisions of this Class A Investor Note set forth on the
reverse hereof, which shall have the same effect as though fully set forth on the face of this
Class A Investor Note. Although a summary of certain provisions of the Indenture are set forth
below and on the reverse hereof and made a part hereof, this Class A Investor 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 Issuer and the Indenture Trustee. A copy of the Indenture may be
requested from the Indenture Trustee by writing to the Indenture Trustee at:

A-1

 

     The Bank of New York
Mellon, 101 Barclay Street, Floor 4W, New York, New York 10286
Attention: Structured Finance Services — Chesapeake Funding, Series 2010-1. 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 Indenture Trustee
whose name appears below by manual signature, this Class A Investor 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.

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

	 	 	 	 	 
	Date: 	CHESAPEAKE FUNDING LLC

 	 
	 	By:  	

 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the Class A Investor Notes of a series issued under the within-mentioned
Indenture.

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON, as Indenture Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signature 	 
	 	 	 	 
	 

 

 

REVERSE OF CLASS A INVESTOR NOTE

     This Series 2010-1 Floating Rate Asset Backed Variable Funding Investor Note, Class A, is one
of a duly authorized issue of Series 2010-1 Investor Notes of Chesapeake Funding LLC (the
“Issuer”) designated its “Series 2010-1 Floating Rate Asset Backed Variable Funding
Investor Notes, Class A” (herein called the “Class A Investor Notes”), all issued under (i)
an Amended and Restated Base Indenture dated as of December 17, 2008 (such Base Indenture, as
amended or modified, is herein called the “Base Indenture”), between the Issuer and The
Bank of New York Mellon, as indenture trustee (the “Indenture Trustee,” which term includes
any successor Indenture Trustee under the Base Indenture), and (ii) a Series 2010-1 Indenture
Supplement dated as of June 1, 2010 (as amended or modified, the “Series 2010-1 Indenture
Supplement”) among the Issuer, PHH Vehicle Management Services, LLC, as Administrator, JPMorgan
Chase Bank, N.A., as Administrative Agent, the Non-Conduit Purchasers, CP Conduit Purchaser Groups,
Funding Agents and Class B Note Purchasers named therein, and the Indenture Trustee. The Base
Indenture and the Series 2010-1 Indenture Supplement are referred to herein as the
“Indenture.” The Class A Investor Notes are subject to all terms of the Indenture. All
terms used in this Class A Investor Note that are defined in the Indenture, as supplemented,
modified or amended, shall have the meanings assigned to them in or pursuant to the Indenture, as
so supplemented, modified or amended.

     Subject to the subordination provisions of the Indenture, the Class A Investor Notes and the
Class B Investor Notes are and will be equally and ratably secured by the Series 2010-1 Collateral
pledged as security therefor as provided in the Indenture and the Series 2010-1 Indenture
Supplement.

     “Payment Date” means the 7th day of each month, or, if such date is not a
Business Day, the next succeeding Business Day, commencing July 7, 2010.

     “Series 2010-1 Interest Period” means a period commencing on and including a Payment
Date and ending on and including the day preceding the next succeeding Payment Date;
provided, however, that the initial Series 2010-1 Interest Period shall commence on
and include the Series 2010-1 Initial Funding Date and end on and include July 6, 2010.

     As described above, principal of this Class A Investor Note shall be payable in the amounts
and at the times set forth in the Indenture, provided, however, the entire unpaid
principal amount of this Class A Investor Note shall be due and payable on the Final Maturity Date.
Notwithstanding the foregoing, principal on the Class A Investor Notes will be paid earlier during
the Series 2010-1 Amortization Period or as a result of a Decrease, each as described in the
Indenture. All principal payments on the Class A Investor Notes shall be made pro rata to the Class
A Investor Noteholders entitled thereto.

     Payments of interest on this Class A Investor Note due and payable on each Payment Date,
together with the installment of principal then due, if any, and any

 

 

payments of principal made on any Business Day in respect of any Decrease, to the extent not
in full payment of this Class A Investor Note, shall be made by wire transfer to the Holder of
record of this Class A Investor Note (or one or more predecessor Class A Investor Notes) on the
Note Register as of the close of business on each Record Date. Any reduction in the principal
amount of this Class A Investor Note (or any one or more predecessor Class A Investor Notes)
effected by any payments made in accordance with the terms hereof and of the Indenture shall be
binding upon all future Holders of this Class A Investor Note and of any Class A Investor Note
issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or
not noted thereon.

     This Class A Note is nontransferable except in accordance with the Series 2010-1 Indenture
Supplement.

     Each Class A Investor Noteholder, by acceptance of a Class A Investor Note, hereby covenants
and agrees that, prior to the date which is one year and one day after the later of (i) the last
day of the Series 2010-1 Amortization Period and (ii) the last day of the amortization period of
any other Outstanding Series, it will not institute against, or join any other Person in
instituting against, the Issuer any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other similar proceedings under any federal or state bankruptcy or
similar law.

     Each Class A Investor Noteholder, by acceptance of a Class A Investor Note, hereby covenants
and agrees that, prior to the date which is one year and one day after the payment in full of all
outstanding Commercial Paper issued by, or for the benefit of, a CP Conduit Purchaser, it will not
institute against, or join any other Person in instituting against, such CP Conduit Purchaser (or
the Person issuing Commercial Paper for the benefit of such CP Conduit Purchaser) any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other similar proceedings
under any federal or state bankruptcy or similar law.

     Each Class A Investor Noteholder, by acceptance of a Class A Investor Note, hereby covenants
and agrees that, prior to the date which is one year and one day after payment in full of all
obligations under each Securitization, it will not institute against, or join any other Person in
instituting against, the Origination Trust, SPV, Holdings, any other Special Purpose Entity, or any
general partner or single member of any Special Purpose Entity that is a partnership or limited
liability company, respectively, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceeding or other proceedings under any federal or state bankruptcy or similar law.

     Each Class A Investor Noteholder, by acceptance of a Class A Investor Note, hereby represents,
warrants and covenants that (a) each of the Lease SUBI and the Fleet Receivable SUBI is a separate
series of the Origination Trust as provided in Section 3806(b)(2) of Chapter 38 of Title 12 of the
Delaware Code, 12 Del.C. § 3801 et seq., (b)(i) the debts, liabilities,
obligations and expenses incurred, contracted for or otherwise existing with respect to the Lease
SUBI, the Lease SUBI Portfolio or the Fleet Receivable SUBI shall be enforceable against the Lease
SUBI Portfolio or the Fleet Receivable SUBI only, as applicable, and not against any other SUBI
Portfolio or the

 

 

UTI Portfolio and (ii) the debts, liabilities, obligations and expenses incurred, contracted
for or otherwise existing with respect to any other SUBI (used in this paragraph as defined in the
Origination Trust Agreement), any other SUBI Portfolio (used in this paragraph as defined in the
Origination Trust Agreement), the UTI or the UTI Portfolio shall be enforceable against such other
SUBI Portfolio or the UTI Portfolio only, as applicable, and not against any other SUBI Assets, (c)
except to the extent required by law, UTI Assets or SUBI Assets with respect to any SUBI (other
than the Lease SUBI and the Fleet Receivable SUBI) shall not be subject to the claims, debts,
liabilities, expenses or obligations arising from or with respect to the Lease SUBI or Fleet
Receivable SUBI, respectively, in respect of such claim, (d)(i) no creditor or holder of a claim
relating to the Lease SUBI, the Fleet Receivable SUBI or the Lease SUBI Portfolio shall be entitled
to maintain any action against or recover any assets allocated to the UTI or the UTI Portfolio or
any other SUBI or the assets allocated thereto, and (ii) no creditor or holder of a claim relating
to the UTI, the UTI Portfolio or any SUBI other than the Lease SUBI or the Fleet Receivable SUBI or
any SUBI Assets other than the Lease SUBI Portfolio or the Fleet Receivables shall be entitled to
maintain any action against or recover any assets allocated to the Lease SUBI or the Fleet
Receivable SUBI, and (e) any purchaser, assignee or pledgee of an interest in the Lease SUBI, the
Lease SUBI Certificate, the Fleet Receivable SUBI, the Lease SUBI Certificate, the Fleet Receivable
SUBI Certificate, any other SUBI, any other SUBI Certificate (used in this Section as defined in
the Origination Trust Agreement), the UTI or the UTI Certificate must, prior to or
contemporaneously with the grant of any such assignment, pledge or security interest, (i) give to
the Origination Trust a non-petition covenant substantially similar to that set forth in Section
6.9 of the Origination Trust Agreement, and (ii) execute an agreement for the benefit of each
holder, assignee or pledgee from time to time of the UTI or UTI Certificate and any other SUBI or
SUBI Certificate to release all claims to the assets of the Origination Trust allocated to the UTI
and each other SUBI Portfolio and in the event that such release is not given effect, to fully
subordinate all claims it may be deemed to have against the assets of the Origination Trust
allocated to the UTI Portfolio and each other SUBI Portfolio.

     It is the intent of the Issuer and each Class A Investor Noteholder that, for Federal, state
and local income and franchise tax purposes, the Class A Investor Notes will evidence indebtedness
of the Issuer secured by the Series 2010-1 Collateral. Each Class A Investor Noteholder, by the
acceptance of this Class A Investor Note, agrees to treat this Class A Investor Note for Federal,
state and local income and franchise tax purposes as indebtedness of the Issuer.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Issuer and the rights of the Holders of the
Class A Investor Notes under the Indenture at any time by the Issuer, the Administrator and the
Indenture Trustee, with the consent of the Series 2010-1 Required Investor Noteholders. The
Indenture also contains provisions permitting the Series 2010-1 Required Investor Noteholders, on
behalf of the Holders of all the Series 2010-1 Investor Notes, to waive compliance by the Issuer
with certain provisions of the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Class A Investor Note (or any one or

 

 

more predecessor Class A Investor Notes) shall be conclusive and binding upon such Holder and
upon all future Holders of this Class A Investor Note and of any Class A Investor Note issued upon
the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation
of such consent or waiver is made upon this Class A Investor Note. The Indenture also permits the
Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without
the consent of Holders of the Series 2010-1 Investor Notes issued thereunder.

     The term “Issuer” as used in this Class A Investor Note includes any successor to the Issuer
under the Indenture.

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

No reference herein to the Indenture and no provision of this Class A Investor Note or of the
Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional,
to pay the principal of and interest on this Class A Investor Note at the times, place, and rate,
and in the coin or currency herein prescribed, subject to any duty of the Issuer to deduct or
withhold any amounts as required by law, including any applicable U.S. withholding taxes.

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