Document:

Exhibit
10.5

 

EXECUTION
COPY

 

June 19, 2003

 

Iron Mountain Information Management, Inc.

745 Atlantic Avenue

Boston, MA 02111

Telephone:  (617) 535-4766

Fax:  (617) 350-7881

Attention: Garry B. Watzke

 

Re:                               Custody
Agreement with HPSC Bravo Funding, LLC: 
Notification of Assignment

 

Ladies and Gentlemen:

 

Reference is hereby made to that certain Custody
Agreement, dated as of June 25, 2002 (the “Custody Agreement”), by and
among  HPSC Bravo Funding, LLC, a
Delaware limited liability company (the “LLC”), Triple-A One Funding
Corporation, a Delaware corporation (“Triple-A”), Capital Markets
Assurance Corporation, a New York Stock insurance company (“CapMAC”), as
Administrative Agent (the “Administrative Agent”) and as Collateral
Agent for the benefit of Triple-A and certain other parties (in such capacity,
the “Collateral Agent”) and Iron Mountain Information Management, Inc.,
a Delaware corporation (“Iron Mountain”).  Capitalized terms used herein without definition shall have the
meanings set forth in the Custody Agreement.

 

Each of the undersigned hereby notifies you, pursuant
to Section 3.04 of the Custody Agreement that, effective as of the date noted
above,  (i) Triple-A has assigned to
Merrill Lynch Commercial Finance Corp. a one-third interest in its rights and
obligations under the Triple-A Purchase Agreement and the Custody Agreement and
(ii) CapMAC has assigned to MBIA Insurance Corporation (“MBIA”), and
MBIA has assumed, all of the rights, duties and obligations of CapMAC as
Collateral Agent and Administrative Agent under the Triple-A Purchase Agreement
and certain other Facility Documents executed in connection therewith,
including the Custody Agreement.   By
its signature below, MBIA hereby further confirms to you that it has assumed
the rights and responsibilities of the Collateral Agent set forth in the
Custody Agreement, and that each of Andrew Laterza, Mike Alter and Glenn Roder
are all Authorized Employees of the Collateral Agent for purposes of the
Custody Agreement.

 

Except as noted above, the Custody Agreement remains
in full force and effect and is hereby ratified and confirmed.

 

 

Iron Mountain Information Management, Inc.

745 Atlantic Avenue

Boston, MA 02111

IN WITNESS WHEREOF, each of the undersigned have caused this
notification of assignment to be executed by their respective officers
thereunto duly authorized as of the date first above written.

 

	
   

  	
   

  	
  HPSC BRAVO FUNDING, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/
  Stephen K. Ballou

  	
   

  
	
   

  	
   

  	
   

  	
  Title:  Manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TRIPLE-A ONE FUNDING
  CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By MBIA INSURANCE
  CORPORATION,

  its Attorney-in-Fact

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/
  Glenn H. Roder

  	
   

  
	
   

  	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CAPITAL MARKETS
  ASSURANCE

  CORPORATION, as resigning Administrative

  Agent and Collateral Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/
  Glenn H. Roder

  	
   

  
	
   

  	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MBIA INSURANCE
  CORPORATION, as

  successor Administrative Agent and Collateral

  Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/
  Glenn H. Roder

  	
   

  
	
   

  	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Receipt Acknowledged:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  IRON MOUNTAIN
  INFORMATION MANAGEMENT, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By

  	
  /s/ Garry B.
  Watzke

  	
   

  	
   

  	
   

  
	
  Title:  Vice
  President

  	
   

  	
   

  	
   

  
							

 

2Exhibit
10.6

 

EXECUTION
COPY

 

 

AMENDED AND RESTATED INSURANCE AND INDEMNITY AGREEMENT

 

among

 

CAPITAL MARKETS ASSURANCE CORPORATION

 

TRIPLE-A ONE FUNDING CORPORATION

 

MERRILL LYNCH COMMERCIAL FINANCE CORP.

individually and
as a Managing Agent

 

MBIA INSURANCE CORPORATION

as Insurer, Collateral Agent and a Managing Agent

 

NATIONAL AUSTRALIA BANK LIMITED

as Agent for the Liquidity Banks

and as an Insured Party

 

and

 

HPSC BRAVO FUNDING, LLC.

 

Dated as of June 19, 2003

 

 

This Amended and Restated Insurance and Indemnity
Agreement has been entered into by the parties hereto in connection with the
Third Amended and Restated Lease Receivables Purchase Agreement among HPSC
Bravo Funding, LLC, a Delaware limited liability company, HPSC, Inc., a
Delaware corporation, Triple-A One Funding Corporation, a Delaware corporation,
Merrill Lynch Commercial Finance Corp., a Delaware corporation, MBIA Insurance
Corporation, a New York insurance corporation, and Capital Markets Assurance
Corporation, a New York Stock insurance company. 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  
	
   

  
	
  DEFINITIONS

  
	
   

  	
   

  
	
  SECTION 1.01

  	
  General Definitions

  
	
  SECTION 1.02

  	
  Other Terms

  
	
   

  	
   

  
	
  ARTICLE II

  
	
   

  	
   

  
	
  THE INSURANCE
  POLICIES AND PREMIUM

  
	
   

  	
   

  
	
  SECTION 2.01

  	
  Insurance Policies

  
	
  SECTION 2.02

  	
  Fees

  
	
  SECTION 2.03

  	
  Conditions Precedent to Issuance of the
  Insurance Policies

  
	
   

  	
   

  
	
  ARTICLE III

  
	
   

  	
   

  
	
  ASSIGNMENT;
  RIGHTS IN FURTHERANCE OF SUBROGATION

  
	
   

  	
   

  
	
  SECTION 3.01

  	
  Assignment Obligation

  
	
  SECTION 3.02

  	
  Option to Purchase

  
	
  SECTION 3.03

  	
  Reimbursement; Rights of Subrogation;
  Further Assurances

  
	
  SECTION 3.04

  	
  No Recourse

  
	
   

  	
   

  
	
  ARTICLE IV

  
	
   

  	
   

  
	
  COVENANTS,
  REPRESENTATIONS AND WARRANTIES

  
	
   

  	
   

  
	
  SECTION 4.01

  	
  Affirmative Covenants of Triple-A, the
  Triple-A Managing Agent and the Collateral Agent

  
	
  SECTION 4.02

  	
  Negative Covenants of Triple-A, Merrill,
  the Triple-A Managing Agent and the Collateral Agent

  
	
  SECTION 4.03

  	
  Affirmative Covenants of MBIA

  
	
  SECTION 4.04

  	
  Representations and Warranties of MBIA

  
	
   

  	
   

  
	
  ARTICLE V

  
	
   

  	
   

  
	
  FURTHER
  AGREEMENTS

  
	
   

  	
   

  
	
  SECTION 5.01

  	
  Right of Controlling Beneficiary to Direct
  Actions of the Insured Parties and the Agents

  
	
  SECTION 5.02

  	
  MBIA Obligations Absolute

  
	
  SECTION 5.03

  	
  Liability of MBIA

  
	
  SECTION 5.04

  	
  Reimbursement of Expenses

  
	
  SECTION 5.05

  	
  No Proceedings

  
	
  SECTION 5.06

  	
  Litigation

  
	
  SECTION 5.07

  	
  Indemnification

  

 

i

 

	
  ARTICLE VI

  
	
   

  	
   

  
	
  MISCELLANEOUS

  
	
   

  	
   

  
	
  SECTION 6.01

  	
  Amendments, Etc

  
	
  SECTION 6.02

  	
  Notices

  
	
  SECTION 6.03

  	
  Payments

  
	
  SECTION 6.04

  	
  No Waiver: Remedies and Severability

  
	
  SECTION 6.05

  	
  Assignment, Etc

  
	
  SECTION 6.06

  	
  Participations, Etc

  
	
  SECTION 6.07

  	
  Termination of this Insurance Agreement
  and the Insurance Policies; Continuing Obligations

  
	
  SECTION 6.08

  	
  GOVERNING LAW

  
	
  SECTION 6.09

  	
  No Recourse

  
	
  SECTION 6.10

  	
  Counterparts

  
	
  SECTION 6.11

  	
  Section Headings, Etc

  
	
  SECTION 6.12

  	
  Reference to and Effect upon Prior
  Insurance Agreement

  

 

ii

 

AMENDED AND RESTATED
INSURANCE AND INDEMNITY AGREEMENT

 

This AMENDED AND RESTATED INSURANCE AND INDEMNITY
AGREEMENT (“Insurance Agreement”), dated as of June 19, 2003, by
and among CAPITAL MARKETS ASSURANCE CORPORATION, a New York stock
insurance company (“CapMAC”), TRIPLE-A ONE FUNDING CORPORATION, a
Delaware corporation (“Triple-A”), MERRILL LYNCH COMMERCIAL FINANCE
CORP., a Delaware corporation (“Merrill”), individually and as a
“Managing Agent” under the Receivables Purchase Agreement referred to below,
MBIA INSURANCE CORPORATION, a New York stock insurance company (“MBIA”),
as Insurer and in its capacity as a Managing Agent and as Collateral Agent (the
“Collateral Agent”) under the Receivables Purchase Agreement referred to
below, NATIONAL AUSTRALIA BANK LIMITED (“NAB”), as agent (the “Liquidity
Agent”) for the Liquidity Banks (as hereinafter defined) and as an “Insured
Party” (as hereinafter defined), and HPSC BRAVO FUNDING, LLC, a Delaware
limited liability company (the “Seller”).

 

PRELIMINARY STATEMENTS

 

WHEREAS, the parties hereto (other than Merrill and
MBIA) are parties to an Insurance and Indemnity Agreement dated as of
January 31, 1995 (the “Prior Insurance Agreement”), whereby CapMAC
issued certain “Surety Bonds” (as defined therein) for the benefit of Triple-A
and the Liquidity Agent and issued certain “Swap Bonds” for the benefit of the
Seller; and

 

WHEREAS, the parties hereto (other than NAB) are
entering into a Third Amended and Restated Lease Receivables Purchase Agreement
of even date herewith (as amended or modified from time to time thereafter, the
“Receivables Purchase Agreement”) pursuant to which each of Triple-A and
Merrill may from time to time purchase interests in certain lease receivables
and related assets owned by the Seller; and

 

WHEREAS, the sale and financing transactions
guaranteed by CapMAC under the Prior Insurance Agreement are being amended and
restated under the Receivables Purchase Agreement and Merrill will be acquiring
certain rights of Triple-A under the pre-existing receivables purchase facility
between Triple-A and the Seller; and

 

WHEREAS, the rights and obligations of CapMAC
as”Collateral Agent” under the Prior Insurance Agreement and related documents
are being assigned to and assumed by MBIA;

 

WHEREAS, Triple-A will fund Capital under the
Receivables Purchase Agreement through the issuance and sale of its short-term
promissory notes in the commercial paper market (any such notes issued to fund
any such Capital  being the “Transaction
Commercial Paper Notes”) and pay the Transaction Commercial Paper Notes
from, among other things, payments on such loans and advances under the “Liquidity
Facility” (as hereinafter defined); and

 

WHEREAS, MBIA is authorized to transact a surety and
insurance business in the State of New York and shall, upon entering into this
Insurance Agreement, subject to the conditions set forth below, issue (i) to
Triple-A an insurance policy in the form of Exhibit A hereto (as amended
from time to time, the “Triple-A Insurance Policy”) guaranteeing the
repayment of all outstanding Capital funded by Triple-A under the Receivables
Purchase Agreement, together with Yield thereon; (ii) to the Liquidity Agent an
insurance policy in the

 

 

form of Exhibit B hereto (as amended from time to time, the “Liquidity
Insurance Policy”) guaranteeing the advances made by the Liquidity Banks
under the Liquidity Facility, together with interest owing thereon and (iii) to
Merrill an insurance policy in the form of Exhibit C hereto (as amended
from time to time, the “Merrill Insurance Policy”) guaranteeing the
repayment of all outstanding Capital funded by Merrill under the Receivables
Purchase Agreement, together with Yield thereon; and

 

WHEREAS, the parties hereto wish to amend and restate
the Prior Insurance Agreement and enter into this Insurance Agreement in order
to, among other things, specify conditions precedent to the issuance by MBIA of
the insurance policies referenced in the preceding paragraph and to provide for
certain other matters related thereto;

 

NOW, THEREFORE, in consideration of the premises and
of the agreements herein contained, CapMAC, the Seller, Triple-A, Merrill, MBIA
(including in its capacities as Managing Agent and as Collateral Agent), and
the Liquidity Agent on behalf of the Liquidity Banks agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

SECTION 1.01  General
Definitions.  As used in this
Insurance Agreement, the following terms shall have the meanings provided
herein (such meanings to be equally applicable to both the singular and plural
forms of the terms defined). 
Capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to them in the Receivables Purchase Agreement
(including Appendix A thereto).

 

“Adverse Claim” means a lien, security
interest, charge, encumbrance or other right or claim of any Person (it being
understood that an ING Receivables Interest in any Purchased Asset shall not
constitute an Adverse Claim within the meaning of this Agreement).

 

“Assigned Assets” has the meaning given to such
term in Section 3.01 hereof.

 

“Assignment Obligation” has the meaning given
to such term in Section 3.01 hereof.

 

“Bankruptcy Code” means Title 11 of the United
States Code as now constituted or as hereafter amended, or any successor law.

 

“Collateral Agent” has the meaning given to
such term in the first paragraph hereof.

 

“Commercial Paper Notes” means the short-term
commercial paper notes issued from time to time by Triple-A, including the
Transaction Commercial Paper Notes.

 

“Controlling Beneficiary” shall mean MBIA
unless an Insurer Default has occurred and is continuing in which event the
Majority Managing Agents shall be the

 

2

 

Controlling
Beneficiary; provided that if the Liquidity Security Agreement is then
in effect and the Trigger Date (as defined in the Liquidity Security Agreement)
has occurred, the Liquidity Collateral Agent shall be deemed to be the Managing
Agent on behalf of Triple-A for purposes of determining who is the Controlling
Beneficiary.

 

“Debt” means for any Person (i) all obligations
of such Person for borrowed money, all obligations of such Person evidenced by
bonds, debentures, notes or other similar instruments, including letters of
credit, banker’s acceptances and similar instruments, all obligations of such
Person to pay the deferred purchase price of property or services, except trade
accounts payable arising in the ordinary course of business, and all
obligations of such Person under leases which have been or should be, in
accordance with generally accepted accounting principles, classified as a
liability on the balance sheet of such Person, (ii) all indebtedness or other
obligations of any other Person of the type specified in clause (i)
above, the payment or collection of which such Person has guaranteed (except by
reason of endorsement for collection in the ordinary course of business) or in
respect of which such Person is liable, contingently or otherwise, including,
without limitation, liable by way of agreement to purchase products or securities,
to provide funds for payment, to maintain working capital or other balance
sheet conditions or otherwise to assure a creditor against loss and (iii) in
the case of Triple-A, all indebtedness or other obligations of any other Person
of the type specified in clause (i) or (ii) above secured by (or
for which the holder of such indebtedness has an existing right contingent or
otherwise, to be secured by) any lien, claim or encumbrance upon or in property
(including, without limitation, accounts and contract rights) owned by
Triple-A, whether or not Triple-A has assumed or becomes liable for the payment
of such indebtedness or obligations.

 

“Event of Termination” has the meaning given to
such term in the Sale  Agreement.

 

“Facility Documents” means the “Facility
Documents” as defined in the Receivables Purchase Agreement together with the
Liquidity Agreement, the Liquidity Security Agreement and all agreements and
documents executed by Triple-A in connection therewith.

 

“Insurance Policies” means, collectively, the
Triple-A Insurance Policy, the Liquidity Insurance Policy, the Merrill
Insurance Policy and any Swap Policies issued by MBIA.

 

“Insured Party” has the meaning set forth in Section
3.01 hereof.

 

“Liquidity Agent” has the meaning given to such
term in the first paragraph hereof.

 

“Liquidity Agreement” means the Second Amended
and Restated Liquidity Agreement of even date herewith, among Triple-A, the
Liquidity Agent and the financial institutions parties thereto from time to
time as “Liquidity Banks”, as the same may be amended, modified, or
supplemented from time to time.

 

3

 

“Liquidity Banks” has the meaning given to such
term in the definition of “Liquidity Agreement.”

 

“Liquidity Collateral Agent” has the meaning
given to such term in the Liquidity Security Agreement.

 

“Liquidity Facility” means the revolving line
of credit described in the Liquidity Agreement.

 

“Liquidity Obligations” has the meaning given
to such term in the Liquidity Agreement.

 

“Liquidity Security Agreement” means the
Amended and Restated Liquidity Security Agreement of even date herewith among
Triple-A, MBIA, CapMAC, Banco Santander Central Hispano, S.A. and NAB as the
Liquidity Agent and as the Liquidity Collateral Agent, as such agreement may be
amended from time to time.

 

“Notice for Payment” means any notice received
by MBIA pursuant to an Insurance Policy demanding payment under such Insurance
Policy.

 

“Option” has the meaning given to such term in Section
3.02 hereof.

 

“Option Price” means a price equal to (i) in
the case of Merrill, the aggregate amount of the Capital, Yield and all other
amounts then accrued and unpaid or otherwise owed to Merrill under the
Receivables Purchase Agreement and (ii) in the case of Triple-A, the greater of
(x) the aggregate amount of the Capital, Yield and all other amounts then
accrued and unpaid or otherwise owed to Triple-A under the Receivables Purchase
Agreement and (y) the Liquidity Obligations; and (iii) in the case of the
Liquidity Agent, the Liquidity Obligations.

 

“Payout Date” means:

 

(a)                                  with
respect to Merrill, the earliest date on which each of the following has
occurred: (i) the Termination Date has occurred, (ii) Merrill has received from
the Seller and/or MBIA repayment of all aggregate outstanding Capital funded by
it together with Yield thereon, and (iii) MBIA has satisfied all payment
obligations under the Merrill Insurance Policy, exclusive of the obligations
with respect to Preference Amounts; and

 

(b)                                 with
respect to Triple-A and the Liquidity Agent, the earliest date on which each of
the following has occurred: (i) the Liquidity Commitment Termination Date, (ii)
all Liquidity Obligations have been paid in full, and (iii) MBIA has satisfied
all payment obligations under the Liquidity Insurance Policy, exclusive of the
obligations with respect to Preference Amounts.

 

“Periodic Premium” means the premium payable to
MBIA pursuant to the MBIA Fee Letter.

 

4

 

“Preference Amounts” with respect to any
Insurance Policy has the meaning given to such term in such Insurance Policy.

 

“Receivables Program” means any program
involving the issuance of Commercial Paper Notes, medium term notes, bonds or
other obligations, the proceeds of which are used to purchase, or fund
financing secured by, whole or partial interests in pools of, or whole or
partial interests in, accounts or notes receivable or other obligations under
circumstances similar to the circumstances contemplated by this Insurance Agreement,
the Insurance Policies and the other Facility Documents.

 

“Swap Bonds” means any “Swap Bonds” issued by
CapMAC under the Prior LRPA which are not amended and restated through issuance
of a Swap Policy.

 

“Surety Bonds” has the meaning given to such term
in the Prior Insurance Agreement.

 

“Termination Notice” has the meaning given to
such term in Section 6.07 hereof.

 

“Triple-A Managing Agent” means MBIA in its
capacity as the “Administrative Agent” for Triple-A and/or in its capacity as a
Managing Agent on behalf of Triple-A under the Receivables Purchase Agreement.

 

SECTION 1.02  Other
Terms.  The words “herein,”
“hereby,” “hereof,” “hereto,” “hereinbefore,” and “hereinafter,” and words of
similar import, refer to this Insurance Agreement in its entirety and not to
any particular paragraph, clause, or other subdivision, unless otherwise
specified.  Any references herein to
Exhibits, Schedules, Sections, or Articles are references to Exhibits,
Schedules, Sections, or Articles of this Insurance Agreement, unless otherwise
specified.

 

ARTICLE II

 

THE INSURANCE
POLICIES AND PREMIUM

 

SECTION 2.01  Insurance Policies.  MBIA agrees, subject to the conditions
hereinafter set forth, to issue the Insurance Policies.

 

SECTION 2.02  Fees.  The Seller will pay, or cause to be paid, to MBIA, the Periodic
Premium when due in accordance with the MBIA Fee Letter.

 

SECTION 2.03  Conditions Precedent to Issuance of the
Insurance Policies.  The obligations
of MBIA under this Insurance Agreement, including its obligation to issue the
Insurance Policies, are subject to the following conditions precedent:

 

(a)                                  No
statute, rule, regulation or order shall have been enacted, entered or deemed
applicable by any government or governmental or administrative agency or court
which would make the transactions contemplated

 

5

 

by this Insurance Agreement or any of the other
Facility Documents illegal or otherwise prevent the consummation hereof and
thereof;

 

(b)                                 This
Insurance Agreement and all other Facility Documents shall have been duly
executed and delivered by each of the parties thereto (with an executed copy of
each such document delivered to MBIA) and shall be in form and substance
satisfactory to MBIA;

 

(c)                                  MBIA
shall have received an executed copy of all legal opinions, certificates and
other documents which MBIA may reasonably request, including, without
limitation, opinions and certificates of Triple-A and the Seller, and shall
have approved the form and substance of each legal opinion, certificate, and
other document required to be furnished by Triple-A or the Seller under the
Facility Documents;

 

(d)                                 MBIA
shall have received any information which MBIA shall have reasonably requested
regarding the Seller, the Receivables, the Facility Documents and all other
financing arrangements with respect thereto, and MBIA shall have approved and
accepted all such matters; and

 

(e)                                  MBIA
shall have received payment of all amounts to be paid to it under the MBIA Fee
Letter as of such date.

 

ARTICLE III

 

ASSIGNMENT; RIGHTS
IN FURTHERANCE OF SUBROGATION

 

SECTION 3.01  Assignment Obligation.  (a) In consideration for the issuance of
each Insurance Policy, each of Triple-A, Merrill and the Liquidity Agent, on
behalf of the Liquidity Banks (collectively, the “Insured Parties” and
each an “Insured Party”) hereby agrees that if a payment is made to such
Insured Party under an Insurance Policy, such Insured Party shall, on the
Payout Date for such Insured Party, respectively, transfer, assign, and convey
to MBIA all of its respective right, title and interest in the following:

 

(i)                                     the
Receivables Purchase Agreement;

 

(ii)                                  the
Purchased Assets and all other rights and interests in property created in
favor of such Insured Party pursuant to the Receivables Purchase Agreement;

 

(iii)                               all UCC Financing
Statements filed against the Seller and the Originator in connection with the
Receivables Purchase Agreement;

 

(iv)                              all
other Facility Documents; and

 

(v)                                 all
other documents, instruments, agreements and property relating to the
foregoing;

 

6

 

and,
in addition, the Liquidity Agent, on behalf of the Liquidity Banks, shall, on
the Payout Date for the Liquidity Agent, assign to MBIA all right, title and
interest in and to the Advances made under and as defined in the Liquidity
Agreement (collectively, all of the foregoing property and interests in
property being, the “Assigned Assets”) (the obligations of the Insured
Parties to transfer, assign, and convey the Assigned Assets are herein
collectively referred to as the “Assignment Obligation”).  Each Insured Party agrees that the transfer,
assignment and conveyance of its interest in the Assigned Assets shall become
effective automatically on the applicable Payout Date, without any further act
by MBIA or such Insured Party or the Managing Agents; provided, however,
that MBIA may request any Insured Party to execute and deliver to MBIA, on or
after the applicable Payout Date, an assignment substantially in the form of Exhibit
D hereto.  The Insured Parties
further agree that any payments made by MBIA under the Insurance Policies or
under Section 3.02 hereof will not be deemed to discharge the Seller of
its obligation to pay such amounts and will therefore not be deemed to reduce
the Capital, Yield or any other amount payable by the Seller under the
Receivables Purchase Agreement.

 

SECTION 3.02  Option to Purchase.

 

(a)                                  Each
Insured Party hereby grants to MBIA an option (each, an “Option”), in
lieu of making a payment to such Insured Party under the applicable Insurance
Policy, to purchase, at any time after the presentation of a Notice for Payment
by or on behalf of such Insured Party, all of such Insured Party’s respective
right and title to, and interest in the Assigned Assets, at the applicable
Option Price owed to such Insured Party. 
Payments made by MBIA of the Option Price shall be made in immediately
available funds to the applicable Insured Party by 2:00 p.m. New York City time
on the second day next succeeding the date of receipt of a Notice for Payment,
and all calculations of amounts of the Capital, Yield, and all other amounts
then accrued and unpaid or otherwise outstanding under the Receivables Purchase
Agreement shall be made as of such day. 
Each of the Options is irrevocable by any Insured Party for so long as
MBIA has any liability under any Insurance Policy.  MBIA may exercise any of the Options by telephonic notice
confirmed in writing by MBIA to the applicable Insured Party  immediately thereafter.

 

(b)                                 Any
purchase pursuant to the exercise of any of the Options hereunder will be
without recourse to any Insured Party other than for a breach by such Insured
Party of a representation that all its right, title, and interest in and to
such Assigned Assets have passed to MBIA free and clear of any Adverse Claim
created by or arising as a result of actions by such Insured Party.

 

(c)                                  Simultaneously
with the payment of the Option Price, the applicable Insured Party will deliver
an assignment substantially in the form of Exhibit D hereto to MBIA as
evidence of the Assigned Assets sold pursuant to such Option.

 

7

 

SECTION 3.03  Reimbursement; Rights of Subrogation;
Further Assurances.

 

(a)                                  In
accordance with Section 6.11(f) of the Receivables Purchase Agreement, MBIA
shall be entitled to reimbursement from the Seller for any payment made under
any Insurance Policy or for any payment made under Section 3.02 hereof,
which reimbursement shall be payable to MBIA on the date that any amount is to
be paid pursuant to a Notice for Payment. 
Such reimbursement shall be made in an amount (the “Repayment Amount”)
equal to (i) the sum of the amount paid or to be paid under any Insurance
Policy or under Section 3.02 hereof and all such amounts previously paid
by MBIA that remain unreimbursed plus (ii) interest on any and all amounts
remaining unreimbursed (to the extent permitted by law, if in respect of any
unpaid amounts representing interest) from the date such amounts became due until
paid in full (after as well as before judgment), at a rate of interest equal to
the Base Rate plus two percent (2.0%). 
Such reimbursement shall be subject to the priority of payments set
forth in the Receivables Purchase Agreement as set forth therein.

 

(b)                                 The
interests, rights, and remedies of MBIA described in Sections 3.01, 3.02,
3.03(a) and 5.01 and of this Insurance Agreement are in addition
to, and not in lieu of, MBIA’s equitable rights of subrogation, and MBIA
reserves all of such rights.  Each of
the Insured Parties and the Collateral Agent agrees to take, or cause to be
taken, all actions deemed desirable by MBIA to preserve, enforce, perfect, or
maintain the perfection in MBIA’s favor of such interests, rights, and remedies
and such equitable rights of subrogation. 
Each of the Insured Parties and the Collateral Agent agrees to promptly
and duly take, execute, acknowledge, and deliver such further acts, documents,
instruments and assurances as MBIA may from time to time reasonably request to
more effectively evidence any assignments under Section 3.01 or 3.02,
respectively, and to perfect all of MBIA’s other rights as against the Seller.

 

SECTION 3.04  No Recourse.  No recourse shall be had for the payment of
any amount owing hereunder or any other obligation or claim arising out of or
based upon this Insurance Agreement against any shareholder, employee, officer,
director, or incorporator of any Insured Party except for any claim arising out
of the gross negligence or willful misconduct of such shareholder, employee,
officer, director, or incorporator of such Insured Party.  The provisions of this Section 3.04
shall survive the termination of this Insurance Agreement.

 

ARTICLE IV

 

COVENANTS,
REPRESENTATIONS AND WARRANTIES

 

SECTION 4.01  Affirmative Covenants of Triple-A, the
Triple-A Managing Agent and the Collateral Agent.  Each of Triple-A, and each of the Triple-A Managing Agent and the
Collateral Agent (to the extent MBIA is no longer the Triple-A Managing Agent
or the Collateral Agent, as applicable), hereby covenants and agrees that
during the term of this Insurance Agreement it will:

 

(a)                                  Reports.  Furnish to MBIA (unless already received by
MBIA) promptly after receipt thereof, a copy of each certificate, report,
statement, notice, demand, or other communication received by it from any
Person in connection

 

8

 

with the Transaction Commercial Paper Notes, this
Insurance Agreement or any Facility Document.

 

(b)                                 Other
Information.  Furnish to MBIA the
following (unless already received by MBIA):

 

(i)                                     within
one Business Day after obtaining actual knowledge of the occurrence of an Event
of Termination or a Wind-Down Event, notice of such event, and immediately
after receiving any certificate, report, statement, notice, or other
communication from the Seller relating to any such event, a copy of any such
communication;

 

(ii)                                  within
one Business Day after receipt thereof, a copy of each Settlement Report
furnished by the Servicer;

 

(iii)                               within one Business Day
after receipt thereof, such information received by it pursuant to the
Receivables Purchase Agreement respecting the business, properties or the
condition or operations, financial or otherwise, of the Seller; and

 

(iv)                              such
other information available to it and relating to the Receivables Purchase
Agreement, as MBIA may from time to time reasonably request in writing.

 

(c)                                  Audits.  Upon written request by MBIA, in the event
MBIA is neither the Collateral Agent nor the Managing Agent for Triple-A,

 

(i)                                     permit
MBIA to participate in any audit conducted by the Collateral Agent or the
Managing Agent for Triple-A pursuant to Section 5.01(c) of the
Receivables Purchase Agreement; and

 

(ii)                                           at
any time on or after any Event of Termination or a Wind-Down Event, cause
notice requesting an audit to be given to the Seller and permit MBIA to
participate in such audit.

 

MBIA’s
participation in any audit pursuant to this Section  4.01(c) shall
include, without limitation, scheduling of such audit, selection of the scope
and methodology of such audit and the auditor’s report, and review by MBIA and
its accountants of the work papers, books and records examined by the auditors
in the course of their audit.  In
addition, the Collateral Agent shall notify MBIA at least five Business Days
prior to undertaking any audit.

 

SECTION 4.02  Negative Covenants of Triple-A, Merrill,
the Triple-A Managing Agent and the Collateral Agent.  Each of (x) Triple-A, (y), solely with
respect to paragraphs (a), (e), (f), (g) and (h),
the Triple-A Managing Agent and the Collateral Agent (to the extent MBIA is no
longer the Triple-A Managing Agent or the Collateral Agent, as applicable) and
(z) solely with respect to paragraphs (e) and (f), Merrill,
agrees and covenants that, without MBIA’s prior written consent, it will not
during the term of this Insurance Agreement:

 

9

 

(a)                                  Liens.  Create, incur or assume any Adverse Claim
upon or with respect to any Purchased Asset or other Collateral other than
pursuant to any of the Facility Documents.

 

(b)                                 Mergers,
Sales of Assets.  Merge into or
consolidate with any Person or assign, transfer, sell, or otherwise dispose of
all or any part of its property or assets to any Person other than in the ordinary
course of business.

 

(c)                                  Limited
Business.  Engage in any business or
other activity, directly or indirectly (including through a subsidiary), except
Receivables Programs (including such activities as may be incidental thereto)
that, at the inception of each such Receivables Program, are rated at least A-1
by Standard & Poor’s Ratings Group (“S&P”), P-1 by Moody’s
Investors Service, Inc. (“Moody’s”), or the approximate equivalent as
approved in writing by MBIA.

 

(d)                                 Creation
of Indebtedness.  Create, incur,
assume, or suffer to exist any Debt other than with respect to any Facility
Document or any Receivables Program complying with paragraph (c) above, except
for (i) obligations, if any, under agreements for the purchase of receivables
or interests therein or loans secured by receivables or interests therein; (ii)
payments with respect to Commercial Paper Notes and any other rated
indebtedness; (iii) indebtedness hereunder, (iv) unsecured indebtedness
incurred in the ordinary course of business (including open accounts extended
by suppliers on normal trade terms in connection with purchases of goods and
services, but excluding indebtedness incurred through the borrowing of money or
guaranties); (v) indebtedness in respect of taxes, assessments or governmental
charges, and indebtedness in respect of claims for labor, materials or supplies
to the extent that the nonpayment thereof shall result in the creation of a
Lien; and (vi) interest rate swaps, caps, collars or similar agreements or
arrangements designed to protect Triple-A against fluctuations in interest
rates.

 

(e)                                  Impairment
of Rights.  Take any action not
required by law, or fail to take any lawful action, if such action or failure
to take such action will interfere with the enforcement of any rights of MBIA
hereunder or under any Facility Document, other than actions directly relating
to or resulting from any breach of any obligation of MBIA hereunder or under
any Insurance Policy.

 

(f)                                    Amendments
or Waivers.  Amend, waive or
otherwise modify, after the date hereof, any provision of the Facility
Documents, including, without limitation, any waiver of any Event of
Termination or Wind-Down Event or any of the eligibility criteria set forth in
the definition of “Eligible Receivable” in the Definitions List attached to the
Receivables Purchase Agreement.

 

(g)                                 MBIA
Information.  Include in any
information memorandum for the Transaction Commercial Paper Notes or any loan
syndication memorandum, correspondence or other communication relating to the
Receivables (as applicable), any information concerning MBIA that is not
supplied or consented to in writing by MBIA expressly for inclusion therein.

 

10

 

(h)                                 Delegation
of Obligations.  Delegate in whole
or in part, except to MBIA, any of its obligations under this Insurance
Agreement.

 

SECTION 4.03  Affirmative Covenants of MBIA.  MBIA agrees and covenants with each Insured
Party that during the term of this Insurance Agreement it will:

 

(a)                                  Compliance
with Laws.  Comply with all
applicable laws, rules, regulations and orders to the extent that noncompliance
would have a material adverse effect upon it, its business or its properties.

 

(b)                                 Corporate
Existence.  Maintain its corporate
existence and at all times continue to be a corporation organized under the
laws of the State of New York, duly qualified to do business in each
jurisdiction in which the failure to be so qualified would have a material
adverse effect on the conduct of its business or on the performance of its
obligations under this Insurance Agreement or the Insurance Policies.

 

(c)                                  Financial
Statements.  Provide to each
Managing Agent as soon as available and in any event within 120 days after the
end of each fiscal year of MBIA, a copy of MBIA’s financial statements, as
delivered to the Superintendent of Insurance for the State of New York, for
such fiscal year then ended.

 

SECTION 4.04  Representations and Warranties of MBIA.  MBIA represents and warrants to the Insured
Parties that:

 

(a)                                  Due
Organization.  It is a duly
incorporated and subsisting New York insurance corporation authorized under an
effective certificate of authority to do business in the State of New York, and
in each jurisdiction where the failure to be so authorized under an effective certificate
of authority would have a material adverse effect on MBIA’s performance of its
obligations under this Insurance Agreement, the Insurance Policies or the other
Facility Documents to which it is a party, individually or taken as a whole.

 

(b)                                 Power
and Authority.  MBIA has all
necessary power and authority to execute and deliver this Insurance Agreement
and each Facility Document to which it is a party, to issue the Insurance
Policies and to perform all of its obligations hereunder and thereunder.

 

(c)                                  Due
Authorization.  The execution,
delivery, and performance by MBIA of this Insurance Agreement, the Insurance
Policies and the other Facility Documents to which it is a party:

 

(i)                                     have
been duly authorized by all necessary corporate action; and

 

(ii)                                  do
not require any approvals or consents of, or any notice to or filing with, any
person or governmental agency or department (except for filings with the
Insurance Department of the State of New York, all of which have been made),
the failure to obtain or make which would have a material adverse effect on
MBIA’s performance of its

 

11

 

obligations under this Insurance Agreement, the
Insurance Policies or the other Facility Documents to which it is a party,
individually or taken as a whole.

 

(d)                                 Valid
and Binding Agreement.  This
Insurance Agreement, the Insurance Policies and the other Facility Documents to
which MBIA is a party, when executed and delivered by all the parties thereto,
will constitute the legal, valid and binding obligations of MBIA, enforceable
against MBIA in accordance with their terms, except as the enforceability
thereof may be limited by bankruptcy, insolvency, reorganization, conservation,
moratorium or similar laws affecting the enforcement of creditors’ rights
generally and by general equitable principles (regardless of whether such
enforceability is considered in a proceeding in equity or law).

 

(e)                                  No
Conflict.  The execution, delivery
and performance of this Insurance Agreement, the Insurance Policies and the
other Facility Documents to which MBIA is a party do not contravene
(i) MBIA’s charter or by-laws, (ii) any law, rule or regulation
applicable to MBIA, (iii) any material indenture, loan or credit agreement
or other instrument binding on MBIA or its property or (iv) any order,
writ, judgment, award or injunction binding on oraffecting MBIA.

 

(f)                                    No
Litigation.  There are no actions,
suits or proceedings at law or in equity by or before any governmental
authority now pending, or, to MBIA’s knowledge, threatened, against MBIA or its
property which purport to challenge the legality, validity or enforceability of
this Insurance Agreement or the other Facility Documents to which MBIA is a
party or which may reasonably be expected to have a material adverse effect on
MBIA’s ability to perform its obligation under this Insurance Agreement, the
Insurance Policies or the other Facility Documents to which it is a party,
individually or taken as a whole.

 

ARTICLE V

 

FURTHER AGREEMENTS

 

SECTION 5.01  Right of Controlling Beneficiary to
Direct Actions of the Insured Parties and the Agents.  Each of the Insured Parties and each Agent
agrees that, following the Controlling Beneficiary’s written request, it will
take or refrain from taking any action, and exercise or refrain from exercising
any rights of such Person under the Facility Documents in the manner described
in the Controlling Beneficiary’s written request; provided, however,
that (i) the obligation of such Insured Party or Agent to take or refrain from
taking, or to exercise or refrain from exercising any such action or rights
shall be limited to those actions and rights that can be exercised or taken (or
not exercised or taken, as the case may be) in full compliance with the
provisions of the Facility Documents and applicable law and (ii) to the extent
that a Facility Document expressly grants an Insured Party or an Agent the
right to consent to any amendments or waivers, nothing in this Section 5.01
shall override the terms of such Facility Document.  Without limiting the generality of the preceding sentence, each
Insured Party and each Agent agrees that, subject to the proviso clause in the
preceding sentence, it will, upon the Controlling Beneficiary’s prior written
request following the occurrence of the respective events or conditions
described below, take, or cause to be taken, the following actions:

 

12

 

(i)                                     upon
a Servicing Termination Event, designate a Person selected by the Controlling
Beneficiary as the Successor Servicer under the Sale Agreement and the
Receivables Purchase Agreement;

 

(ii)                                  upon
an Event of Termination or Wind-Down Event and the replacement of the Servicer
as provided in clause (i) above, (a) declare an Event of Termination and/or
Wind-Down Event, (b) instruct the Collection Account Bank to remit all funds on
deposit therein on a daily basis to the Collateral Agent or its designee, (c)
determine that the Purchasers shall cease to fund Purchases under the Receivables
Purchase Agreement, (d) pursuant to the Receivables Purchase Agreement, direct
the Servicer to commence or settle any legal action to enforce collection of
any Receivables or to enforce, foreclose upon or repossess any Receivable, and
(e) notify account debtors on Receivables to make payments thereon as
designated by the Controlling Beneficiary and exercise all other remedies of
the Purchasers, the Managing Agents and/or the Collateral Agent on its behalf
set forth in the Receivables Purchase Agreement; and

 

(iii)                               request from the Seller,
under the Receivables Purchase Agreement, any information, documents, records,
or reports respecting the Purchased Assets or the conditions or operations,
financial or otherwise, of the Seller as the Controlling Beneficiary may
specify from time to time.

 

SECTION 5.02  MBIA Obligations Absolute.  The obligations of MBIA under the Insurance
Policies are absolute and unconditional as set forth therein.

 

SECTION 5.03  Liability of MBIA.  Each Insured Party and each Agent agrees
that neither MBIA, any of its Affiliates, nor any of their respective officers,
directors, or employees, is or will be liable or responsible for (except to the
extent of its own or their gross negligence or willful misconduct):

 

(a)                                  the
use which may be made of the Insurance Policies by another Person, or for any
acts or omissions of such other Person in connection therewith; or

 

(b)                                 the
validity, sufficiency, accuracy, or genuineness of documents, or of any
endorsement(s) thereon, even if such documents should in fact prove to be in
any or all respects invalid, insufficient, fraudulent, or forged;

 

provided, that nothing in this Section
5.03 shall relieve MBIA from any obligation to pay under the Insurance
Policies.  In furtherance and not in
limitation of the foregoing, MBIA may accept documents that appear on their
face to be in order, without responsibility for further investigation.

 

SECTION 5.04  Reimbursement of Expenses.  The Seller hereby agrees to pay to MBIA, and
each Agent agrees to remit to MBIA, promptly upon receipt by such Agent of any
amount in respect of any of the following, in each case after written demand
therefor by MBIA, all reasonable out-of-pocket costs, expenses, and
disbursements, including attorneys’ fees and expenses and other costs and
expenses incurred by MBIA in connection with the preparation,

 

13

 

execution, delivery, administration, modification, amendment,
termination, waiver or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of rights or
responsibilities under, this Insurance Agreement, each of the other Facility
Documents to which it is a party, and any other agreement related to the
foregoing (including, without limitation, any initial and ongoing audit
expenses of MBIA incurred in connection with this transaction), and each Agent
agrees to pay over to MBIA any amounts received by it under the Receivables
Purchase Agreement in respect of any such demand for payment by MBIA.  Without prejudice to the foregoing, the
Seller agrees that in the event that MBIA seeks to enforce any of its rights
under the Facility Documents against the Seller, and Triple-A agrees that in
the event that MBIA seeks to enforce any of its rights hereunder against
Triple-A, then, in either such event, the Seller or Triple-A, as applicable,
shall remit to MBIA, after written demand therefor, all reasonable
out-of-pocket costs, expenses, and disbursements, including attorneys’ fees and
expenses and other costs and expenses incurred by MBIA in connection with the
enforcement of such rights.  The
reimbursement provisions of this Section 5.04 will survive the
termination of this Insurance Agreement.

 

SECTION 5.05  No
Proceedings.  Each of MBIA, the Seller,
the Insured Parties and each Agent hereby agrees (which agreement shall,
pursuant to the terms of this Insurance Agreement, be binding upon its
successors and assigns) that it shall not institute against, or join any other
Person in instituting against, Triple-A any bankruptcy, reorganization,
arrangement, insolvency, or liquidation proceeding, or other proceeding under
any federal or state bankruptcy or similar law, for one year and a day after
payment in full of the latest maturing Commercial Paper Notes or other rated
indebtedness issued by it (whether or not issued to fund Receivables Purchases
or the maintenance of Capital under the Receivables Purchase Agreement).

 

SECTION 5.06  Litigation.  Each Insured Party and each Agent (but
without duplication) shall (i) provide written notice to the Controlling
Beneficiary immediately upon obtaining actual knowledge of the commencement of
any judicial proceeding (including, without limitation, bankruptcy, insolvency,
receivership, and other such proceedings) which relates to, or arises in
connection with, the Receivables Purchase Agreement, the Purchased Assets or
the Transferred Assets (each, a “Relevant Proceeding”); (ii) consult
with the Controlling Beneficiary with respect to, and permit the Controlling
Beneficiary to participate in, any discussions and decisions relating to any
such Relevant Proceeding with a view towards minimizing the potentially adverse
effect that such Relevant Proceeding may have on the Controlling Beneficiary’s
interest in the Transferred Assets, the Purchased Assets or the Receivables
Purchase Agreement and (iii) not agree to any settlement of any such Relevant
Proceeding without the Controlling Beneficiary’s prior written consent.  The Controlling Beneficiary may elect at any
time after receipt of the notice described in the first sentence of this Section
5.06, to assume responsibility for and control over the Relevant
Proceeding.  Such election shall be made
by delivery to the Insured Parties and the Collateral Agent of a written notice
thereof, signed by the Controlling Beneficiary, which notice shall contain the
Controlling Beneficiary’s agreement to assume responsibility for, and not seek
reimbursement from any Insured Party or Agent for, any claims, demands,
liabilities, damages, losses, costs, and expenses (including attorneys’ fees
and expenses accrued only after the date the Controlling Beneficiary assumed
control over such Relevant Proceeding) that may be incurred by the Controlling
Beneficiary in connection with such Relevant Proceeding.

 

SECTION 5.07  Indemnification.  In addition to any and all rights of
reimbursement, subrogation or any other rights pursuant hereto or under law or
equity, and without limiting any reimbursement, subrogation or indemnification
right of MBIA under any other Facility

 

14

 

Document, the Seller hereby agrees to pay, indemnify, and hold MBIA and
its affiliates and the officers, directors, employees of MBIA or any such
affiliates (each an “Indemnitee”) harmless from and against any and all
out-of-pocket liabilities (including penalties), obligations, losses, damages,
actions, suits, demands, claims, judgments, taxes, costs, expenses or
disbursements of any kind or nature whatsoever that arise out of or in any way
relate to or result from or out of (a) the transactions contemplated by the
Facility Documents or (b) any investigation or defense of, or participation in,
any legal proceeding relating to the execution, delivery, enforcement,
performance or administration of the Facility Documents (whether or not such
Indemnitee is a party thereto) (collectively, the “Indemnified Liabilities”);
provided that the Seller shall have no obligation hereunder to any
Indemnitee with respect to Indemnified Liabilities arising from the gross
negligence or willful misconduct of any Indemnitee.  Any payments required to be made by the Seller under this section
shall be due upon demand.  The indemnity
provisions of this section shall survive the termination of this Insurance
Agreement.

 

ARTICLE VI

 

MISCELLANEOUS

 

SECTION 6.01  Amendments,
Etc.  No amendment, waiver or
modification of any provision of this Insurance Agreement, or any consent to
any departure therefrom, shall in any event be effective unless in writing and signed
by each of MBIA, Triple-A, Merrill, the Collateral Agent and the Liquidity
Agent; provided that, (i) any amendment, waiver or modification of Sections
4.01, 4.02, 5.04 or 5.07, insofar as such Sections
impose no duties nor confer any rights on the Liquidity Agent or the Liquidity
Banks nor any rights or obligations of any other party with respect thereto, or
any consent to any departure therefrom, may be effective without the consent of
the Liquidity Agent; (ii) any amendment, waiver or modification of any
provision of Section 3.03(a) or of Sections 5.04, 5.05, 5.07
or of this Article VI insofar as such sections affect the Seller shall
require the prior written consent of the Seller; and (iii) in any event, any
waiver so granted shall extend only to the specific event or occurrence so
waived and not to any other similar event or occurrence which occurs subsequent
to the date of such waiver.  No
amendment to this Insurance Agreement or the Triple-A Insurance Policy or the
Liquidity Insurance Policy shall in any event be effective until S&P and
Moody’s confirm that such amendment would not cause the then current rating
assigned to the Commercial Paper Notes to be reduced or withdrawn.

 

SECTION 6.02  Notices.  Except to the extent otherwise expressly
provided herein, all notices, requests, and demands to or upon the respective
parties hereto to be effective shall be in writing (and if sent by mail,
certified or registered, return receipt requested) or facsimile transmission
and, unless otherwise expressly provided herein, shall be deemed to have been
duly given or made when delivered by hand, or three business days after being
deposited in the mail, postage prepaid, or, in the case of facsimile
transmission, when sent, addressed as follows:

 

If
to the Seller:

 

HPSC
Bravo Funding, LLC

Sixty
State Street, 35th Floor

Boston,
Massachusetts  02109-1803

Attention:  President

Telephone:  (617) 720-7251

 

15

 

Telecopier:  (617) 720-7272

 

If
to Triple-A:

 

Triple-A
One Funding Corporation

c/o
MBIA Insurance Corporation

113
King Street

Armonk,
New York  10504

Attention:  Head of Exposure Management

Telephone:
(914) 273-4545

Telecopier:
(914) 765-3810

 

If
to MBIA (including as agent):

 

MBIA
Insurance Corporation

113
King Street

Armonk,
New York  10504

Attention:
Head of Exposure Management

Telephone:
(914) 273-4545

Telecopier:
(914) 765-3810

 

If
to Merrill (including as Managing Agent)

 

Merrill
Lynch Commercial Finance Corp.

4
World Financial Center

10th
Floor

New
York, NY  10080

Attention:
Grant Jones

Telephone:
(212) 449-2695

Telecopier:
(212) 449-9015

 

If
to the Liquidity Agent:

 

National
Australia Bank Limited

200
Park Avenue

34th
Floor

New
York, NY  10166

Attention:  Dave Hummer

Telephone:  (212) 916-9513

Telecopier:  (212) 983-1969

 

SECTION 6.03  Payments.  All payments to MBIA hereunder shall be made
in lawful currency of the United States and in immediately available funds and
shall be made prior to 2:00 p.m. (New York City time) on the date such payment
is due by wire transfer to such office or account as MBIA may direct from time
to time.  Payments received by MBIA
after 2:00 p.m. (New York City time) shall be deemed to have been received on
the next succeeding Business Day, and such extension of time shall be included
in the computation of interest or fees, if any, in connection with such
payment.

 

16

 

Whenever any payment under this Insurance Agreement
shall be stated to be due on a day which is not a Business Day, such payment
shall be made on the next succeeding Business Day, and such extension of time
shall in such case be included in computing interest or fees, if any, in
connection with such payment.

 

SECTION 6.04  No
Waiver: Remedies and Severability. 
No failure on the part of MBIA or the Controlling Beneficiary to
exercise, and no delay in exercising, any right hereunder will operate as a
waiver thereof; nor will any single or partial exercise of any such right
preclude any other or further exercise thereof or the exercise of any other
right.  The remedies herein provided are
cumulative and not exclusive of any remedies provided elsewhere or by law.  The parties hereto further agree that the
holding by any court of competent jurisdiction that any remedy pursued by the
parties hereto and hereunder is unavailable or unenforceable will not affect in
any way the ability of such parties to pursue any other remedy available to
them.  In the event any provision of
this Insurance Agreement shall be held to be invalid or unenforceable by any
court of competent jurisdiction, such provision shall be ineffective only to
the extent of such invalidity or unenforceability, without invalidating the
remainder of such provision or any other provisions of this Insurance
Agreement.

 

SECTION 6.05  Assignment,
Etc.  This Insurance Agreement shall
be binding upon and inure to the benefit of the parties hereto (including the
Liquidity Agent on behalf of the Liquidity Banks) and their respective
successors and permitted assigns.  No
Purchaser or Managing Agent nor the Collateral Agent shall sell, assign or
transfer to any Person (other than to MBIA pursuant to the terms of this
Insurance Agreement, or the assignment by Triple-A contemplated pursuant to the
terms of the Liquidity Security Agreement), or otherwise dispose of, at any
time, any of its rights or obligations hereunder or under any of the Facility
Documents, or any of its interests herein or therein, unless the assignee
agrees to be bound by the terms and provisions of this Insurance Agreement and
such sale, assignment, transfer or other disposition otherwise complies with
the requirements and restrictions set forth therefor in the applicable Facility
Documents and any restrictions under applicable law.

 

SECTION 6.06  Participations,
Etc.  (a) MBIA shall have the right
to grant participations in its rights under this Agreement and to enter into
contracts of reinsurance with respect to the Insurance Policies upon such terms
and conditions as MBIA may in its discretion determine; provided, however, that
no such participation or reinsurance agreement or arrangement shall relieve
MBIA of any of its obligations hereunder or under the Insurance Policies and no
such reinsurer or participant may have any direct rights against the other
parties hereto and that no Insured Party will have any obligation to
communicate or have any relationship whatsoever with any reinsurer or
participant in order to enforce the obligations of MBIA under the Insurance
Policies.

 

(b)                                 In
addition, MBIA shall be entitled to assign or pledge to any bank or other
lender providing liquidity or credit with respect to the Receivables Purchase
Agreement or the obligations of MBIA in connection therewith, any rights of
MBIA under the Facility Documents, any real or personal property or other
interests pledged to MBIA, or in which MBIA has a security interest, in
connection with the Receivables Purchase Agreement.

 

(c)                                  Except
as provided herein with respect to participants and reinsurers and in Section
6.05 with respect to assignees, nothing in this

 

17

 

Agreement shall confer any right, remedy or claim,
express or implied, upon any Person, other than the parties hereto, and all the
terms, covenants, conditions, promises and agreements contained herein shall be
for the sole and exclusive benefit of the parties hereto.

 

SECTION 6.07  Termination
of this Insurance Agreement and the Insurance Policies; Continuing Obligations.  This Insurance Agreement shall create and
constitute continuing obligations of the Seller and the other parties hereto in
accordance with its terms, and such obligations will terminate on the date
which occurs after the termination of the Insurance Policies when MBIA has
recovered all of the payments it has made, if any, under the Insurance Policies
or pursuant to Section 3.02.  Any
termination of this Insurance Agreement will be effective only upon the
delivery to MBIA of the Insurance Policies, whereupon the Insurance Policies
will be cancelled and MBIA’s liability thereunder will cease except as
specified therein with respect to Preference Amounts.

 

SECTION 6.08  GOVERNING
LAW.  THIS INSURANCE AGREEMENT IS TO
BE CONSTRUED, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER
ARE TO BE DETERMINED, IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

SECTION 6.09  No
Recourse.  Anything contained in
this Insurance Agreement or any other Facility Document to the contrary
notwithstanding, all payments to be made by Triple-A under this Insurance
Agreement shall be made by Triple-A solely from available cash, which shall be
limited to the (a) proceeds of collections and other amounts payable by or on
behalf of the Seller to Triple-A in connection with any of the Facility
Documents and (b) drawings made by Triple-A under the Triple-A Insurance Policy
(collectively “Available Funds”). 
No recourse shall be had against Triple-A personally or against any
incorporator, shareholder, officer, director or employee of Triple-A with
respect to any of the covenants, agreements, representations or warranties of
Triple-A contained in this Insurance Agreement, or any other Facility Document,
it being understood that such covenants, representations or warranties are
enforceable only against Available Funds. 
The provisions of this Section shall survive the termination of this
Insurance Agreement.  The parties to
this Insurance Agreement hereby acknowledge that, pursuant to the terms and
conditions of this Insurance Agreement and the other Facility Documents,
Triple-A is or may be required, from time to time, to make certain payments to
such parties, either as compensation for services rendered, reimbursement for
out of pocket expenses, indemnification, or otherwise, as set forth herein and
therein.  Such parties hereby agree that,
notwithstanding any provision of any Facility Document, (i) Triple-A shall not
make any such payment to any such party, (ii) Triple-A shall have no duty,
liability or obligation to make any such payment to any such party, (iii) no
such payment shall be due from Triple-A and (iv) no such party shall have any
right to enforce any claim against Triple-A in respect of any such payment, in
each case at any time that any Commercial Paper Note is outstanding and no
Insolvency Event (as defined below) has occurred and is continuing, and in each
case unless and except to the extent that (x) the making of such payment by
Triple-A would not render Triple-A insolvent and (y) Triple-A has received
Available Funds with respect to such obligations which may be used to make such
payment and which funds are not required to pay Commercial Paper Notes when
due; provided, however, that the foregoing shall not be construed
to prohibit a drawing on the Liquidity Insurance Policy by the Liquidity
Agent.  As used in this Section the term
“Insolvency Event” shall mean the entry against Triple-A of a decree or
order by a court or agency or supervisory authority having jurisdiction in the
premises for the

 

18

 

appointment of a trustee, conservator, receiver or liquidator in any
insolvency, readjustment of debt, marshalling of assets and liabilities or
similar proceedings, or for the winding up or liquidation of its affairs, and,
in the case of any such proceeding instituted against Triple-A, either such
proceeding shall remain undismissed or unstayed for a period of 60 consecutive
days or an order for relief as described below has been entered, or the consent
by Triple-A to or the entry of an order for the appointment of a trustee, conservator,
receiver or liquidator in any insolvency, readjustment of debt, order of
relief, marshalling of assets and liabilities of or relating to Triple-A or the
filing by Triple-A of a petition to take advantage of any applicable insolvency
or reorganization statute.

 

SECTION 6.10  Counterparts.  This Insurance Agreement may be executed in
counterparts by the parties hereto, and each such counterpart will be
considered an original and all such counterparts will constitute one and the
same instrument.

 

SECTION 6.11  Section
Headings, Etc.  The headings of
sections, paragraphs and clauses contained in this Insurance Agreement are
provided for convenience only.  They
form no part of this Insurance Agreement and do not and will not affect its
construction or interpretation.

 

SECTION 6.12  Reference
to and Effect upon Prior Insurance Agreement.

 

(a)                                  From
and after the Effective Date, (i) the terms and provisions of this Insurance
Agreement shall amend and supersede the terms and provisions of the Prior
Insurance Agreement and (ii) all references in any other Facility Documents to
the Insurance Agreement shall mean and be a reference to this Insurance
Agreement.  It is expressly understood
and agreed that the execution and delivery of this Insurance Agreement is not
intended to be, and shall not be construed as, a novation of the Prior
Insurance Agreement.  Each of the
parties hereto (other than Merrill) ratifies the representations, warranties,
covenants and indemnities made in the Prior Insurance Agreement, and each of
the parties hereto agrees that such agreement is, as of the date hereof, in
full force and effect except to the extent expressly modified hereby.  Without limiting the foregoing, each of the
parties hereto agrees that CapMAC shall retain all rights of reimbursement,
subrogation and indemnification under the Prior Insurance Agreement and each
Swap Bond until such Swap Bond shall be terminated by the issuance by MBIA of a
swap insurance policy in replacement thereof.

 

(b)                                 Each
of Triple-A and the Liquidity Agent on behalf of the Liquidity Banks hereby
agrees that, upon receipt by such Person of the Triple-A Insurance Policy and
the Liquidity Insurance Policy, respectively, (i) the Surety Bond issued by
CapMAC under the Prior Insurance Agreement for the benefit of such Person and
all obligations of CapMAC thereunder will be immediately terminated without
further action on the part of such Person or of CapMAC and (ii) such Person
shall promptly return all originals of such Surety Bond to CapMAC or to MBIA.

 

19

 

IN
WITNESS WHEREOF, the parties hereto have executed this Insurance Agreement, all
as of the day and year first above mentioned.

 

	
   

  	
  CAPITAL MARKETS ASSURANCE 

  CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Glenn H. Roder

  	
   

  
	
   

  	
   

  	
   Name:
  Glenn H. Roder

  	
   

  
	
   

  	
   

  	
   Title:
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  TRIPLE-A ONE FUNDING

  CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:  MBIA
  Insurance Corporation,

  its attorney-in-fact

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Glenn H. Roder

  	
   

  
	
   

  	
   

  	
   Name:
  Glenn H. Roder

  	
   

  
	
   

  	
   

  	
   Title:
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MBIA INSURANCE
  CORPORATION, as Insurer,

  Collateral Agent and Triple-A Managing Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Glenn H. Roder

  	
   

  
	
   

  	
   

  	
   Name:
  Glenn H. Roder

  	
   

  
	
   

  	
   

  	
   Title:
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MERRILL LYNCH
  COMMERCIAL FINANCE

  CORP., individually and as a Managing Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Joshua A. Green

  	
   

  
	
   

  	
   

  	
   Name:
  Joshua A. Green

  	
   

  
	
   

  	
   

  	
   Title:
  Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NATIONAL
  AUSTRALIA BANK LIMITED

  
	
   

  	
  as Liquidity
  Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  David Hummer

  	
   

  
	
   

  	
   

  	
   Name:
  David Hummer

  	
   

  
	
   

  	
   

  	
   Title:
  Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  HPSC BRAVO
  FUNDING, LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Stephen K. Ballou

  	
   

  
	
   

  	
   

  	
   Name:
  Stephen K. Ballou

  	
   

  
	
   

  	
   

  	
   Title:
  Manager

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]