Document:

EXHIBIT 4.9

 

EXECUTION COPY

 

ARG FUNDING CORP.,

as Issuer

and

THE BANK OF NEW YORK,

as Trustee

AMENDED AND RESTATED SERIES 2005-2
SUPPLEMENT

dated as of April 13, 2006

to

FOURTH AMENDED AND RESTATED BASE
INDENTURE

dated as of
April 13, 2006

$218,000,000
Series 2005-2 4.54% Rental Car Asset Backed Notes, Class A-1

$395,000,000 Series 2005-2 Floating Rate Rental Car Asset Backed Notes, Class
A-2

$320,000,000 Series 2005-2 Floating Rate Rental Car Asset Backed Notes, Class
A-3

$167,000,000 Series 2005-2 4.84% Rental Car Asset Backed Notes, Class A-4

$400,000,000 Series 2005-2 Floating Rate Rental Car Asset Backed Notes, Class
A-5

TABLE OF CONTENTS

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE I

  	
   

  	
  DEFINITIONS

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  	
  SERIES 2005-2
  ALLOCATIONS

  	
   

  	
  38

  
	
  Section 2.1

  	
   

  	
  Establishment and
  Administration of Series 2005-2 Collection Account, Series 2005-2 Accrued
  Interest Account and Series 2005-2 Excess Collection Account

  	
   

  	
  38

  
	
  Section 2.2

  	
   

  	
  Allocations with
  Respect to the Series 2005-2 Notes

  	
   

  	
  42

  
	
  Section 2.3

  	
   

  	
  Distribution
  Dates

  	
   

  	
  47

  
	
  Section 2.4

  	
   

  	
  Payment of Note
  Interest, Surety Provider Fee, Surety Provider Reimbursement Amounts and
  Series 2005-2 Interest Rate Hedge Premium

  	
   

  	
  50

  
	
  Section 2.5

  	
   

  	
  Payment of Note
  Principal

  	
   

  	
  50

  
	
  Section 2.6

  	
   

  	
  Servicer’s
  Failure to Instruct the Trustee to Make a Deposit or Payment

  	
   

  	
  55

  
	
  Section 2.7

  	
   

  	
  Series 2005-2
  Reserve Account

  	
   

  	
  55

  
	
  Section 2.8

  	
   

  	
  Series 2005-2
  Letters of Credit and Series 2005-2 Cash Collateral Account

  	
   

  	
  58

  
	
  Section 2.9

  	
   

  	
  Series 2005-2
  Distribution Account

  	
   

  	
  62

  
	
  Section 2.10

  	
   

  	
  Series 2005-2
  Demand Note and each Series 2005-2 Interest Rate Hedge Constitutes Additional
  Collateral for Series 2005-2 Notes

  	
   

  	
  64

  
	
  Section 2.11

  	
   

  	
  Series 2005-2
  Interest Rate Hedges

  	
   

  	
  65

  
	
  Section 2.12

  	
   

  	
  Series 2005-2
  Interest Rate Hedge Collateral Account

  	
   

  	
  66

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  	
  AMORTIZATION
  EVENTS

  	
   

  	
  69

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  	
  [RESERVED]

  	
   

  	
  72

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  	
  [RESERVED]

  	
   

  	
  72

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  	
  FORM OF SERIES
  2005-2 NOTES

  	
   

  	
  72

  
	
  Section 6.1

  	
   

  	
  Restricted
  Global Series 2005-2 Notes

  	
   

  	
  72

  
	
  Section 6.2

  	
   

  	
  Temporary Global
  Series 2005-2 Notes; Permanent Global Series 2005-2 Notes

  	
   

  	
  72

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  	
  TERMINATION OF
  SERIES SUPPLEMENT

  	
   

  	
  73

  
	
  Section 7.1

  	
   

  	
  Termination of
  Series Supplement

  	
   

  	
  73

  
	
  Section 7.2

  	
   

  	
  Application of
  Trust Money

  	
   

  	
  75

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  	
  GENERAL

  	
   

  	
  75

  

 

i

 

	
  Section 8.1

  	
   

  	
  Optional
  Repurchase of Series 2005-2 Notes

  	
   

  	
  75

  
	
  Section 8.2

  	
   

  	
  Information

  	
   

  	
  75

  
	
  Section 8.3

  	
   

  	
  Issuances of
  Additional Series 2005-2 Notes

  	
   

  	
  78

  
	
  Section 8.4

  	
   

  	
  Series 2005-2
  Demand Note

  	
   

  	
  79

  
	
  Section 8.5

  	
   

  	
  Disposition
  Agent Agreement

  	
   

  	
  79

  
	
  Section 8.6

  	
   

  	
  Exhibits

  	
   

  	
  79

  
	
  Section 8.7

  	
   

  	
  Ratification of
  Base Indenture

  	
   

  	
  80

  
	
  Section 8.8

  	
   

  	
  Notice to Surety
  Provider, the Series 2005-2 Interest Rate Hedge Provider and Rating Agencies.

  	
   

  	
  80

  
	
  Section 8.9

  	
   

  	
  Surety Provider
  Deemed Noteholder and Secured Party

  	
   

  	
  81

  
	
  Section 8.10

  	
   

  	
  Third Party
  Beneficiary

  	
   

  	
  81

  
	
  Section 8.11

  	
   

  	
  Prior Notice by
  Trustee to Surety Provider

  	
   

  	
  81

  
	
  Section 8.12

  	
   

  	
  Subrogation

  	
   

  	
  81

  
	
  Section 8.13

  	
   

  	
  Counterparts

  	
   

  	
  82

  
	
  Section 8.14

  	
   

  	
  Governing Law

  	
   

  	
  82

  
	
  Section 8.15

  	
   

  	
  Amendments

  	
   

  	
  82

  
	
  Section 8.16

  	
   

  	
  Security
  Interest Opinion

  	
   

  	
  83

  
	
  Section 8.17

  	
   

  	
  Agreements
  Relating to LKE Program.

  	
   

  	
  83

  
	
  Section 8.18

  	
   

  	
  Agreement of
  Series 2005-2 Noteholders

  	
   

  	
  84

  
	
  Section 8.19

  	
   

  	
  Effectiveness of
  Amendment and Restatement

  	
   

  	
  84

  

 

 

ii

 

                                AMENDED AND
RESTATED SERIES 2005-2 SUPPLEMENT, dated as of April 13, 2006 (as amended,
modified, restated or supplemented from time to time in accordance with the
terms hereof, this “Series Supplement”), between ARG Funding Corp., a
special purpose corporation established under the laws of Delaware (“ARG”),
and The Bank of New York, a New York banking corporation, as trustee (together
with its successors in trust under the Base Indenture referred to below, the “Trustee”),
to the Fourth Amended and Restated Base Indenture, dated as of April 13, 2006,
between ARG and the Trustee (as further amended, modified, restated or
supplemented from time to time, exclusive of Series Supplements, the “Base
Indenture”).

PRELIMINARY STATEMENT

WHEREAS, pursuant to Sections
2.2 and 12.1 of the Base Indenture, the parties hereto have entered into that
certain Series 2005-2 Supplement, dated as of March 4, 2005 (as amended to
date, the “Existing Series 2005-2 Supplement”);

WHEREAS, Section 8.15 of the
Existing Series 2005-2 Supplement permits the Existing Series 2005-2 Supplement
to be amended in accordance with the terms of the Base Indenture;

WHEREAS, Section 12.2 of the
Base Indenture permits ARG and the Trustee with the consent of the Rating
Agencies, any applicable Enhancement Provider and the Required Noteholders
(such terms and other capitalized terms used but not defined herein shall have
the meaning specified in Schedule 1 to the Base Indenture) to enter into one or
more indentures supplemental to the Existing Series 2005-2 Supplement; and

WHEREAS, the parties hereto
desire to amend and restate the Existing Series 2005-2 Supplement in its
entirety.

NOW, THEREFORE, the parties
hereto agree as follows:

DESIGNATION

There is hereby created a Series
of Notes to be issued pursuant to the Base Indenture and this Series Supplement
and such Series of Notes shall be designated generally as “Series 2005-2 Rental
Car Asset Backed Notes”.  The Series 2005-2 Notes (as defined
herein) shall be issued in five classes: 
(i) the first of which shall be designated as the Series 2005-2 4.54%
Rental Car Asset Backed Notes, Class A-1, and referred to herein as the “Class
A-1 Notes”, (ii) the second of which shall be designated as the Series 2005-2
Floating Rate Rental Car Asset Backed Notes, Class  A-2, and referred to herein as the “Class A-2
Notes”, (iii) the third of which shall be designated as the Series 2005-2
Floating Rate Rental Car Asset Backed Notes, Class  A-3, and referred to herein as the “Class A-3
Notes”, (iv) the fourth of which shall be designated as the Series 2005-2 4.84%
Rental Car Asset Backed Notes, Class A-4, and referred to herein as the “Class
A-4 Notes” and (v) the fifth of which shall be designated as the Series 2005-2
Floating Rate Rental Car Asset Backed Notes, Class A-5, and referred to herein
as the 

 

 

“Class A-5 Notes”. 
The Class A-1 Notes, the Class 
A-2 Notes, the Class  A-3 Notes,
the Class A-4 Notes and the Class A-5 Notes are collectively referred to herein
as the “Series 2005-2 Notes”.

The Series 2005-2
Notes shall be issued in minimum denominations of $100,000 and integral
multiples of $1,000 in excess thereof.

The net proceeds from the sale
of the Series 2005-2 Notes shall be deposited in the Series 2005-2 Collection
Account and used to fund increases in the principal amounts of the Leasing
Company Notes to the extent that the Leasing Companies have requested funding
thereunder and to make payments in reduction of the Invested Amount of other
Series of Group I Notes from time to time.

The Series 2005-2 Notes are a
non-Segregated Series of Notes (as more fully described in the Base Indenture)
sharing in the Collateral.  Accordingly,
all references in this Series Supplement to “all” Series of Notes (and all
references in this Series Supplement to terms defined in the Base Indenture
that contain references to “all” Series of Notes) shall refer to all Series of
Notes other than Segregated Series of Notes. 
In addition, the Series 2005-2 Notes are hereby designated as a Series
of Group I Notes and this Series Supplement is hereby designated as a Group I
Supplement.  The Series 2005-2 Notes do
not have any rights in any collateral granted to the Trustee other than the
Collateral.

ARTICLE I

DEFINITIONS

(a)   All capitalized terms not otherwise defined
herein are defined in the Definitions List attached to the Base Indenture as Schedule
I thereto, as amended, modified, restated or supplemented from time to time
in accordance with the terms of the Base Indenture (exclusive of any Series
Supplements).  All Article, Section or
Subsection references herein shall refer to Articles, Sections or Subsections
of the Base Indenture, 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 2005-2 Notes and not to any other Series of Notes issued by
ARG.  All references herein to the “Series
2005-2 Supplement” shall mean the Base Indenture, as supplemented hereby.  For the avoidance of doubt, for purposes of
calculating the “Required Aggregate Asset Amount” as defined in the Base
Indenture, the “Series 2005-2 Adjusted Invested Amount” definition shall be
used in lieu of the “Series 2005-2 Invested Amount” definition.

(b)   The following words and phrases shall have
the following meanings with respect to the Series 2005-2 Notes and the
definitions of such terms are applicable to the singular as well as the plural
form of such terms and to the masculine as well as the feminine and neuter
genders of such terms:

 

2

 

“Additional Class A-1 Notes”
means any additional Class A-1 Notes issued or proposed to be issued after the
Series 2005-2 Closing Date in accordance with Section 8.3 of this Series Supplement.

“Additional Class A-2 Notes”
means any additional Class A-2 Notes issued or proposed to be issued after the
Series 2005-2 Closing Date in accordance with Section 8.3 of this Series Supplement.

“Additional Class A-3 Notes”
means any additional Class A-3 Notes issued or proposed to be issued after the
Series 2005-2 Closing Date in accordance with Section 8.3 of this Series Supplement.

“Additional Class A-4 Notes”
means any additional Class A-4 Notes issued or proposed to be issued after the
Series 2005-2 Closing Date in accordance with Section 8.3 of this Series Supplement.

“Additional Class A-5 Notes”
means any additional Class A-5 Notes issued or proposed to be issued after the
Series 2005-2 Closing Date in accordance with Section 8.3 of this Series Supplement.

“Additional Series 2005-2
Floating Rate Notes” means, collectively, the Additional Class A-2 Notes,
the Additional Class A-3 Notes and the Additional Class A-5 Notes.

“Additional Series 2005-2
Notes” means, collectively, the Additional Class A-1 Notes, the Additional
Class A-2 Notes, the Additional Class A-3 Notes, the Additional Class A-4 Notes
and the Additional Class A-5 Notes.

“Adjusted Aggregate Asset
Amount” means, as of any day, the sum of (a) the Aggregate Asset Amount and
(b) the sum of (1) the amount of cash and Permitted Investments on deposit in
the Series 2005-2 Collection Account and available for reduction of the Series 2005-2 Invested
Amount and (2) the amount of cash and Permitted Investments on deposit in the Series 2005-2 Excess Collection Account, in each
case on such day.

“Aggregate Asset Amount
Deficiency” means, as of any date of determination, the amount by which the
Required Aggregate Asset Amount as of such date exceeds the Aggregate Asset
Amount as of such date.

 “Certificate of Lease Deficit Demand”
means a certificate in the form of Annex A to a Series 2005-2 Letter of
Credit.

“Certificate of Termination
Date Demand” means a certificate in the form of Annex D to a Series
2005-2 Letter of Credit.

 

3

 

“Certificate of Termination
Demand” means a certificate in the form of Annex C to a Series
2005-2 Letter of Credit.

“Certificate of Unpaid Demand
Note Demand” means a certificate in the form of Annex B to a Series
2005-2 Letter of Credit.

“Class A-1 Adjusted Periodic
Interest” means, (a) for the initial Distribution Date, $522,352.22 and (b)
for any other Distribution Date with respect to the Class A-1 Notes, the sum of
(i) for the Series 2005-2 Interest Period ending on the day preceding such
Distribution Date, an amount equal to the product of (1) one-twelfth
of the Class A-1 Note Rate and (2) the Class A-1 Outstanding Principal Amount
on the first day of such Series 2005-2 Interest Period, after giving effect to
any principal payments made on such date, and (ii) an amount equal to the
amount of any unpaid Series 2005-2 Deficiency Amounts with respect to the Class
A-1 Notes, as of the preceding Distribution Date with respect to such Class A-1
Notes (together with any accrued interest on such Series 2005-2 Deficiency
Amounts).

“Class A-1 Initial Invested
Amount” means the aggregate initial principal amount of the Class A-1
Notes, which is $218,000,000.

“Class A-1 Invested Amount”
means, when used with respect to any date, an amount equal to (a) the Class A-1
Outstanding Principal Amount plus (b) the sum of (i) the aggregate principal amount of any Class A-1
Notes redeemed with the proceeds of a demand on the Surety Bond on or prior to
such date and (ii) the aggregate principal amount of Class A-1 Notes the
redemption of which shall have been rescinded for any reason.

“Class A-1 Note Rate”
means 4.54% per annum.

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

“Class A-1 Notes” means
any one of the Series 2005-2 4.54% Rental Car Asset Backed Notes, Class A-1,
executed by ARG and authenticated by or on behalf of the Trustee, substantially
in the form of Exhibit A-1-1 hereto. 
Definitive Class A-1 Notes shall have such insertions and deletions as
are necessary to give effect to the provisions of Section 2.18 of the Base
Indenture.

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

“Class A-1 Periodic Interest”
means, with respect to (a) the initial Series 2005-2 Interest Period, an amount
equal to the product of (i) the Class A-1 Note Rate, (ii) 

 

4

 

the Class A-1 Initial Invested
Amount and (iii) 19/360 and (b) any other Series 2005-2 Interest Period for the
Class A-1 Notes, an amount equal to the product of (i) one-twelfth of the Class
A-1 Note Rate and (ii) the Class A-1 Invested Amount on the first day of such
Series 2005-2 Interest Period, after giving effect to any principal payments
made on such date.

“Class A-1/A-2 Carryover Controlled Amortization
Amount” means, with respect to the
Class A-1 Notes and the Class A-2 Notes for any Related Month during the Class
A-1/A-2 Controlled Amortization Period, the amount, if any, by which the
portion of the Monthly Total Principal Allocation paid to the Class A-1 Notes
and the Class A-2 Notes for the previous Related Month was less than the Class
A-1/A-2 Controlled Distribution Amount for the previous Related Month; provided,
however, that for the first Related Month in the Class A-1/A-2
Controlled Amortization Period, the Class A-1/A-2 Carryover Controlled
Amortization Amount shall be zero.

“Class A-1/A-2 Controlled Amortization Amount”
means (i) with respect to any Related Month during the Class A-1/A-2 Controlled
Amortization Period other than the Related Month immediately preceding the
Class A-1/A-2 Expected Final Distribution Date, $102,166,666.66 and (ii) with
respect to the Related Month immediately preceding the Class A-1/A-2 Expected
Final Distribution Date, $102,166,666.70.

“Class A-1/A-2 Controlled
Amortization Period” means the period commencing at the close of business
on October 31, 2007 (or, if such day is not a Business Day, the Business Day
immediately preceding such day) and ending on the earlier to occur of (i) the
date on which the Class A-1 Notes and the Class A-2 Notes are fully paid and
the Surety Provider has been paid all Surety Provider Fees and all Surety
Provider Reimbursement Amounts then due and owing as of such date and (ii) the
commencement of the Series 2005-2 Rapid Amortization Period.

“Class A-1/A-2 Controlled Distribution
Amount” means, with respect to (i) any Related Month during the Class
A-1/A-2 Controlled Amortization Period, an amount equal to the sum of the Class
A-1/A-2 Controlled Amortization Amount and any Class A-1/A-2
Carryover Controlled Amortization Amount for such Related Month and (ii) any
other Related Month, zero (0).

“Class A-1/A-2 Expected Final
Distribution Date” means the May 2008 Distribution Date.

“Class A-1/A-2 Final
Distribution Date” means the May 2009 Distribution Date.

“Class A-2 Adjusted Periodic
Interest” means (a) for the initial Distribution Date, $619,162.50 and (b)
for any other Distribution Date with respect to the Class A-2 Notes, the sum of
(i) for the Series 2005-2 Interest Period ending on the day preceding such
Distribution Date, an amount equal to the product of (l) the Class A-2 

 

5

 

Note
Rate for such Interest Period, (2) the Class A-2 Outstanding Principal Amount
on the first day of such Interest Period and (3) a fraction, the numerator of
which is the number of days in such Interest Period and the denominator of
which is 360 and (ii) an amount equal to the amount of any unpaid Series 2005-2
Deficiency Amounts with respect to the Class A-2 Notes, as of the preceding
Distribution Date with respect to such Class A-2 Notes (together with any
accrued interest on such Series 2005-2 Deficiency Amounts).

“Class A-2 Initial Invested
Amount” means the aggregate initial principal amount of the Class A-2
Notes, which is $395,000,000.

“Class A-2 Interest Rate Hedge” means initially the rate hedge
transaction agreement, dated as of March 29, 2005, between ARG and the Series
2005-2 Initial Interest Rate Hedge Provider, substantially in the form of Exhibit
H to this Series Supplement, and each other rate hedge transaction
agreement substantially in the form of Exhibit H to this Series Supplement
or such other rate hedge transaction agreement entered into by ARG with a
Qualified Interest Rate Hedge Provider, subject to satisfaction of the Series
2005-2 Rating Agency Confirmation and Consent Condition, in each case with a
strike rate equal to no more than 4.50% per annum and an aggregate notional
amount equal to at least the Class A-2 Invested Amount.

“Class A-2 Interest Rate
Hedge Provider” means a provider of a Class A-2 Interest Rate Hedge.

“Class A-2 Invested Amount”
means, when used with respect to any date, an amount equal to (a) the Class A-2
Outstanding Principal Amount plus (b) the sum of (i) the aggregate principal amount of any Class A-2
Notes redeemed with the proceeds of a demand on the Surety Bond on or prior to
such date and (ii) the aggregate principal amount of Class A-2 Notes the
redemption of which shall have been rescinded for any reason.

“Class A-2 Note Rate”
means, (i) with respect to the initial Series 2005-2 Interest Period, 2.97% per
annum and (ii) with respect to each Series 2005-2 Interest Period thereafter, a
rate per annum equal to LIBOR for such Series 2005-2 Interest Period plus 0.11%
per annum.

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

“Class A-2 Notes” means
any one of the Series 2005-2 Floating Rate Rental Car Asset Backed Notes, Class
A-2, executed by ARG and authenticated by or on behalf of the Trustee,
substantially in the form of Exhibit A-1-2 hereto.  Definitive Class A-2 Notes shall have such insertions
and deletions as are necessary to give effect to the provisions of Section 2.18
of the Base Indenture.

 

6

 

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

“Class A-2 Periodic Interest”
means, with respect to any Interest Period for the Class A-2 Notes, an amount
equal to the product of (A) the Class A-2 Invested Amount on the first day of
such Interest Period, (B) the Class A-2 Note Rate for such Interest Period and
(C) the number of days in such Interest Period divided by 360.

“Class A-3 Adjusted Periodic
Interest” means (a) for the initial Distribution Date, $506,666.67 and (b)
for any other Distribution Date with respect to the Class A-3 Notes, the sum of
(i) for the Series 2005-2 Interest Period ending on the day preceding such
Distribution Date, an amount equal to the product of (l) the Class A-3 Note
Rate for such Interest Period, (2) the Class A-3 Outstanding Principal Amount
on the first day of such Interest Period and (3) a fraction, the numerator of
which is the number of days in such Interest Period and the denominator of
which is 360 and (ii) an amount equal to the amount of any unpaid Series 2005-2
Deficiency Amounts with respect to the Class A-3 Notes, as of the preceding
Distribution Date with respect to such Class A-3 Notes (together with any
accrued interest on such Series 2005-2 Deficiency Amounts).

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

“Class A-3 Controlled Amortization Amount”
means (i) with respect to any Related Month during the Class A-3 Controlled
Amortization Period other than the Related Month immediately preceding the
Class A-3 Expected Final Distribution Date, $53,333,333.33 and (ii) with
respect to the Related Month immediately preceding the Class A-3 Expected Final
Distribution Date, $53,333,333.35.

“Class A-3 Controlled
Amortization Period” means the period commencing at the close of business
on October 31, 2008 (or, if such day is not a Business Day, the Business Day
immediately preceding such day) and ending on the earlier to occur of (i) the
date on which the Class A-3 Notes are fully paid and the Surety Provider has
been paid all Surety Provider Fees and all Surety Provider Reimbursement
Amounts then due and owing as of such date and (ii) the commencement of the
Series 2005-2 Rapid Amortization Period.

 

7

 

“Class A-3 Controlled Distribution Amount”
means, with respect to (i) any Related Month during the Class A-3 Controlled
Amortization Period, an amount equal to the sum of the Class A-3
Controlled Amortization Amount and any Class A-3 Carryover Controlled
Amortization Amount for such Related Month and (ii) any other Related Month,
zero (0).

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

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

“Class A-3 Initial Invested
Amount” means the aggregate initial principal amount of the Class A-3
Notes, which is $320,000,000.

“Class A-3 Interest Rate Hedge” means initially the rate hedge
transaction agreement, dated as of March 29, 2005, between ARG and the Series
2005-2 Initial Interest Rate Hedge Provider, substantially in the form of Exhibit
H to this Series Supplement, and each other rate hedge transaction
agreement substantially in the form of Exhibit H to this Series
Supplement or such other rate hedge transaction agreement entered into by ARG
with a Qualified Interest Rate Hedge Provider,
subject to satisfaction of the Series 2005-2 Rating Agency Confirmation and
Consent Condition, in each case with a strike rate equal to no more than 4.50%
per annum and an aggregate notional amount equal to at least the Class A-3
Invested Amount.

“Class A-3 Interest Rate
Hedge Provider” means a provider of a Class A-3 Interest Rate Hedge.

“Class A-3 Invested Amount”
means, when used with respect to any date, an amount equal to (a) the Class A-3
Outstanding Principal Amount plus (b) the sum of (i) the aggregate principal amount of any Class A-3
Notes redeemed with the proceeds of a demand on the Surety Bond on or prior to
such date and (ii) the aggregate principal amount of Class A-3 Notes the
redemption of which shall have been rescinded for any reason.

“Class A-3 Note Rate” means,
(i) with respect to the initial Series 2005-2 Interest Period, 3.00% per annum
and (ii) with respect to each Series 2005-2 Interest Period thereafter, a rate
per annum equal to LIBOR for such Series 2005-2 Interest Period plus 0.14% per
annum.

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

“Class A-3 Notes” means
any one of the Series 2005-2 Floating Rate Rental Car Asset Backed Notes, Class
A-3, executed by ARG and authenticated by or on behalf of the Trustee,
substantially in the form of Exhibit A-1-3 hereto.  Definitive Class 

 

8

 

A-3 Notes shall have such
insertions and deletions as are necessary to give effect to the provisions of
Section 2.18 of the Base Indenture.

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

“Class A-3 Periodic Interest”
means, with respect to any Interest Period for the Class A-3 Notes, an amount
equal to the product of (A) the Class A-3 Invested Amount on the first day of
such Interest Period, (B) the Class A-3 Note Rate for such Interest Period and
(C) the number of days in such Interest Period divided by 360.

“Class A-4 Adjusted Periodic
Interest” means, (a) for the initial Distribution Date, $426,592.22 and (b) for any
other Distribution Date with respect to the Class A-4 Notes, the sum of
(i) for the Series 2005-2 Interest Period ending on the day preceding such
Distribution Date, an amount equal to the product of (1) one-twelfth
of the Class A-4 Note Rate and (2) the Class A-4 Outstanding Principal Amount
on the first day of such Series 2005-2 Interest Period, after giving effect to
any principal payments made on such date, and (ii) an amount equal to the
amount of any unpaid Series 2005-2 Deficiency Amounts with respect to the Class
A-4 Notes, as of the preceding Distribution Date with respect to such Class A-4
Notes (together with any accrued interest on such Series 2005-2 Deficiency
Amounts).

“Class A-4 Initial Invested Amount”
means the aggregate initial principal amount of the Class A-4 Notes, which is
$167,000,000.

“Class A-4 Invested Amount”
means, when used with respect to any date, an amount equal to (a) the Class A-4
Outstanding Principal Amount plus (b) the sum of (i) the aggregate principal amount of any Class A-4
Notes redeemed with the proceeds of a demand on the Surety Bond on or prior to
such date and (ii) the aggregate principal amount of Class A-4 Notes the
redemption of which shall have been rescinded for any reason.

“Class A-4 Note Rate”
means 4.84% per annum.

“Class A-4 Noteholder” means the person in
whose name a Class A-4 Note is registered in the Note Register.

“Class A-4 Notes” means
any one of the Series 2005-2 4.84% Rental Car Asset Backed Notes, Class A-4,
executed by ARG and authenticated by or on behalf of the Trustee, substantially
in the form of Exhibit A-1-4 hereto. 
Definitive Class A-4 Notes shall have such insertions and deletions as
are necessary to give effect to the provisions of Section 2.18 of the Base
Indenture.

 

9

 

“Class A-4 Outstanding
Principal Amount” means, when used with respect to any date, an amount
equal to (a) the Class A-4 Initial Invested Amount minus (b) the amount of principal payments made to
the Class A-4 Noteholders on or prior to such date plus (c) the aggregate principal amount of Additional Class A-4 Notes
issued on or prior to such date.

“Class A-4 Periodic Interest”
means, with respect to (a) the initial Series 2005-2 Interest Period, an amount
equal to the product of (i) the Class A-4 Note Rate, (ii) the Class A-4 Initial
Invested Amount and (iii) 19/360 and (b) any other Series 2005-2 Interest
Period for the Class A-4 Notes, an amount equal to the product of (i) one-twelfth
of the Class A-4 Note Rate and (ii) the Class A-4 Invested Amount on the first
day of such Series 2005-2 Interest Period, after giving effect to any principal
payments made on such date.

“Class A-4/A-5 Carryover Controlled Amortization
Amount” means, with respect to the
Class A-4 Notes and the Class A-5 Notes for any Related Month during the Class
A-4/A-5 Controlled Amortization Period, the amount, if any, by which the
portion of the Monthly Total Principal Allocation paid to the Class A-4 Notes
and the Class A-5 Notes for the previous Related Month was less than the Class
A-4/A-5 Controlled Distribution Amount for the previous Related Month; provided,
however, that for the first Related Month in the Class A-4/A-5
Controlled Amortization Period, the Class A-4/A-5 Carryover Controlled
Amortization Amount shall be zero.

“Class A-4/A-5 Controlled Amortization Amount”
means with respect to each Related Month during the Class A-4/A-5 Controlled
Amortization Period $94,500,000.00.

“Class A-4/A-5 Controlled Amortization
Period” means the period commencing at the close of business on October 31,
2009 (or, if such day is not a Business Day, the Business Day immediately
preceding such day) and ending on the earliest to occur of (i) the date on
which the Class A-4 Notes and the Class A-5 Notes are fully paid and the Surety
Provider has been paid all Surety Provider Fees and all Surety Provider
Reimbursement Amounts then due and owing as of such date and (ii) the
commencement of the Series 2005-2 Rapid Amortization Period.

“Class A-4/A-5 Controlled Distribution Amount”
means, with respect to (i) any Related Month during the Class A-4/A-5
Controlled Amortization Period, an amount equal to the sum of the Class A-4/A-5
Controlled Amortization Amount and any Class A-4/A-5 Carryover Controlled
Amortization Amount for such Related Month and (ii) any other Related Month,
zero (0).

“Class A-4/A-5 Expected Final
Distribution Date” means the May 2010 Distribution Date.

“Class A-4/A-5 Final
Distribution Date” means the May 2011 Distribution Date.

 

10

 

“Class A-5 Adjusted Periodic
Interest” means (a) for the initial Distribution Date, $637,555.56 and (b)
for any other Distribution Date with respect to the Class A-5 Notes, the sum of
(i) for the Series 2005-2 Interest Period ending on the day preceding such
Distribution Date, an amount equal to the product of (l) the Class A-5 Note
Rate for such Interest Period, (2) the Class A-5 Outstanding Principal Amount
on the first day of such Interest Period and (3) a fraction, the numerator of
which is the number of days in such Interest Period and the denominator of
which is 360 and (ii) an amount equal to the amount of any unpaid Series 2005-2
Deficiency Amounts with respect to the Class A-5 Notes, as of the preceding
Distribution Date with respect to such Class A-5 Notes (together with any
accrued interest on such Series 2005-2 Deficiency Amounts).

“Class A-5 Initial Invested
Amount” means the aggregate initial principal amount of the Class A-5
Notes, which is $400,000,000.

“Class A-5 Interest Rate Hedge” means initially the rate hedge
transaction agreement, dated as of March 29, 2005, between ARG and the Series
2005-2 Initial Interest Rate Hedge Provider, substantially in the form of Exhibit
H to this Series Supplement, and each other rate hedge transaction
agreement substantially in the form of Exhibit H to this Series
Supplement or such other rate hedge transaction agreement entered into by ARG
with a Qualified Interest Rate Hedge Provider, subject
to satisfaction of the Series 2005-2 Rating Agency Confirmation and Consent
Condition, in each case with a strike rate equal to no more than 4.50% per
annum and an aggregate notional amount equal to at least the Class A-5 Invested
Amount.

“Class A-5 Interest Rate
Hedge Provider” means a provider of a Class A-5 Interest Rate Hedge.

“Class A-5 Invested Amount”
means, when used with respect to any date, an amount equal to (a) the Class A-5
Outstanding Principal Amount plus (b) the sum of (i) the aggregate principal amount of any Class A-5
Notes redeemed with the proceeds of a demand on the Surety Bond on or prior to
such date and (ii) the aggregate principal amount of Class A-5 Notes the
redemption of which shall have been rescinded for any reason.

“Class A-5 Note Rate”
means, (i) with respect to the initial Series 2005-2 Interest Period, 3.02% per
annum and (ii) with respect to each Series 2005-2 Interest Period thereafter, a
rate per annum equal to LIBOR for such Series 2005-2 Interest Period plus 0.16%
per annum.

“Class A-5 Noteholder” means the person in
whose name a Class A-5 Note is registered in the Note Register.

“Class A-5 Notes” means
any one of the Series 2005-2 Floating Rate Rental Car Asset Backed Notes, Class
A-5, executed by ARG and authenticated by or on behalf of the Trustee,
substantially in the form of Exhibit A-1-5 hereto.  Definitive Class 

 

11

 

A-5 Notes shall have such
insertions and deletions as are necessary to give effect to the provisions of
Section 2.18 of the Base Indenture.

“Class A-5 Outstanding
Principal Amount” means, when used with respect to any date, an amount
equal to (a) the Class A-5 Initial Invested Amount minus (b) the amount of principal payments made to
the Class A-5 Noteholders on or prior to such date plus (c) the aggregate principal amount of Additional Class A-5 Notes
issued on or prior to such date.

“Class A-5 Periodic Interest”
means, with respect to any Interest Period for the Class A-5 Notes, an amount
equal to the product of (A) the Class A-5 Invested Amount on the first day of
such Interest Period, (B) the Class A-5 Note Rate for such Interest Period and
(C) the number of days in such Interest Period divided by 360.

“Class Invested Amount” means, with respect to
the Series 2005-2 Notes of any Class, the Class A-1 Invested Amount, the Class
A-2 Invested Amount, the Class A-3 Invested Amount, the Class A-4 Invested
Amount and the Class A-5 Invested Amount, as applicable.

“Disposition Agent Unpaid Fee Amount” has the
meaning specified in Section 2.7(f) of this Series Supplement.

“Disposition Proceeds”
means the net proceeds (other than (i) the portion of the Repurchase Price
payable by the Manufacturer pursuant to a Manufacturer Program or (ii) with
respect to Series 2005-2 Non-Program Vehicles, the portion of the net proceeds
payable by any Lessee pursuant to the applicable Lease) from the sale or
disposition of a Vehicle to any Person, whether at an auction or otherwise.

“Expected Final Distribution Date” means with respect to the Series 2005-2 Notes of
any class, the Class A-1/A-2 Expected Final Distribution Date, the Class A-3
Expected Final Distribution Date or the Class A-4/A-5 Expected Final
Distribution Date, as applicable.

“Fair Market Value”
means, with respect to any Vehicle as of any date of determination, the
wholesale market value of such Vehicle as specified in the Related Month’s
Lease Guide, for the model class and model year of such Vehicle based on the
average equipment and the average mileage of each vehicle of such model class
and model year; provided, that if the Lease Guide is not being published
or the Lease Guide is being published but such Vehicle is not included therein,
the Finance Guide at the beginning of the model year shall be used to estimate
the wholesale market value of the Vehicle, based on the Vehicle’s model class
and model year or the closest model class and model year thereto and a vehicle
condition of “average” (as defined in the Finance Guide); provided, further,
that if the Finance Guide is not being published or the Finance Guide is being
published but such Vehicle is not included therein, the wholesale market value
of such Vehicle shall be based on an independent third-party data source, and
determined in accordance with a methodology, with respect to which the Series
2005-2 

 

12

 

Rating Agency Confirmation and
Consent Condition shall have been satisfied; provided, further,
that if no such third-party data source or methodology shall have been so
approved or any such third-party source or methodology is not available, the
wholesale market value of such Vehicle shall be the Capitalized Cost of such
Vehicle less depreciation charges at a rate equal to the Vanguard Historical
Depreciation Rate as of such date of the Capitalized Cost of such Vehicle since
the date of such Vehicle’s purchase.

“Fair Market Value Average”
means, as of any Determination Date, the percentage equivalent of a fraction,
the numerator of which is the average of the sum of the respective Fair Market
Values of each Series 2005-2 Non-Program Vehicle (including, for the avoidance
of doubt, any Series 2005-2 Non-Program Vehicle that was a Series 2005-2
Program Vehicle but was redesignated as a Series 2005-2 Non-Program Vehicle as
a result of a Manufacturer Event of Default, effective as of the second
Determination Date following such redesignation, but only for so long as such
Series 2005-2 Non-Program Vehicle is designated as a Series 2005-2 Non-Program
Vehicle, but excluding Series 2005-2 Ineligible Program Vehicles) subject to
the Leases as of such Determination Date and the two Determination Dates
precedent thereto and the denominator of which is the average of the aggregate
Net Book Value of each Series 2005-2 Non-Program Vehicle (including, for the
avoidance of doubt, any Series 2005-2 Non-Program Vehicle that was a Series
2005-2 Program Vehicle but was redesignated as a Series 2005-2 Non-Program
Vehicle as a result of a Manufacturer Event of Default, effective as of the
second Determination Date following such redesignation, but only for so long as
such Series 2005-2 Non-Program Vehicle is designated as a Series 2005-2
Non-Program Vehicle, but excluding Series 2005-2 Ineligible Program Vehicles)
subject to the Leases as of such Determination Date and the two Determination
Dates precedent thereto; provided that for purposes of determining the
Net Book Value of any Series 2005-2 Program Vehicle that was redesignated as a
Series 2005-2 Non-Program Vehicle as a result of a Manufacturer Event of
Default, notwithstanding the definition of Net Book Value set forth in the Base
Indenture, Net Book Value shall be determined, for purposes of calculating the
Fair Market Value and Fair Market Value Average, by applying the Depreciation
Schedule (and applicable Depreciation Charges) established for such Series
2005-2 Non-Program Vehicle when such Series 2005-2 Non-Program Vehicle was
redesignated in accordance with the provisions of the applicable Lease.

“Final Distribution Date”
means with respect to the Series 2005-2 Notes of any class, the Class A-1/A-2
Final Distribution Date, the Class A-3 Final Distribution Date or the Class
A-4/A-5 Final Distribution Date, as applicable.

“GM Freeze Vehicle Amount” means, as of any date of determination (x) either
(A) in any period during which no Manufacturer Event of Default with respect to
GM has occurred and is continuing or (B) which is less than 31 days after the
occurrence of a Specified Manufacturer Event of Default with respect to GM that
is continuing, an amount equal to the sum, rounded to the nearest $100,000, of
the following amounts to the extent that such amounts are included in the
definition of “Aggregate Asset Amount” 

 

13

 

for such date:  (i) the Net Book Value of all GM Freeze
Vehicles that are Eligible Vehicles as of such date and not turned in to GM
pursuant to its Manufacturer Program, or not otherwise sold or deemed to be
sold under the related Leasing Company Related Documents, plus (ii) all
amounts receivable by a Leasing Company as of such date (other than Excluded
Payments) from GM under its Manufacturer Program with respect to Eligible
Vehicles that were GM Freeze Vehicles (other than Exchanged Vehicles) (as of
the applicable Disposition Date) and turned in to GM pursuant to such
Manufacturer Program and the aggregate of all Eligible Receivables owned by a
Leasing Company, financed under the related Leasing Company Indenture and owed
by GM with respect to a GM Freeze Vehicle under and in accordance with its
Manufacturer Program, plus (iii) with regard to Eligible Vehicles that
were GM Freeze Vehicles (as of the applicable Disposition Date) that have been
turned in to GM, or otherwise sold, any Casualty Payments or Termination
Payments with respect to such Eligible Vehicles due and payable as of such date
under the Leases, plus (iv) with regard to Eligible Vehicles that were
GM Freeze Vehicles (as of the applicable Disposition Date) that have been
turned in to GM, or otherwise sold, any accrued and unpaid Monthly Base Rent
under the Leases with respect to such Eligible Vehicles that were GM Freeze
Vehicles (net of amounts set forth in clauses (ii) and (iii)
above), plus (v) if
such date of determination is during the period from and including a
Determination Date to but excluding the next Distribution Date, any accrued and
unpaid Monthly Base Rent under the Leases with respect to such Eligible
Vehicles that were GM Freeze Vehicles that have not been turned in to GM or
otherwise sold, as of such date of determination and (y) (1) in any period
during which a Manufacturer Event of Default other than a Specified
Manufacturer Event of Default with respect to GM has occurred and is continuing
or (2) which is at least 31 days after the occurrence of a Specified
Manufacturer Event of Default with respect to GM that is continuing, zero.

“GM Freeze Vehicle Percentage” means, as of any date of determination, the
percentage equivalent of a fraction, the numerator of which is the GM Freeze
Vehicle Amount as of such date and the denominator of which is the Aggregate
Asset Amount as of such date.

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

“Insurance Agreement”
means the Insurance Agreement, dated as April 1, 2005, among the Surety
Provider, the Trustee and ARG, as amended, modified, restated or supplemented
from time to time in accordance with the terms thereof.

“Insured Principal Deficit
Amount” means, with respect to any Distribution Date, the excess, if any,
of (i) the Series
2005-2 Outstanding Principal Amount
measured as of such Distribution Date over (ii) the sum on such Distribution
Date of (A) the Series 2005-2 Aggregate Asset Amount, (B) the amount of cash
and Permitted Investments on deposit in the Series 2005-2 Excess Collection
Account, (C) the Series 2005-2 Available Reserve Account Amount, (D) the Series
2005-2 Letter of 

 

14

 

Credit Amount and (E) the amount
on deposit in the Series 2005-2 Distribution Account and allocated to effect a
redemption of the Series 2005-2 Notes of any class.

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

“Lease Deficit Disbursement”
means an amount drawn under a Series 2005-2 Letter of Credit pursuant to a
Certificate of Lease Deficit Demand.

“Lease Payment Deficit Notice”
has the meaning specified in Section 2.2(g) of this Series Supplement.

“LIBOR” means, with
respect to each Series 2005-2 Interest Period, a rate per annum to be
determined by the Trustee as follows:

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

If, on any LIBOR Determination
Date, such rate does not appear on Telerate Page 3750, the Trustee will request
the principal London offices of each of four major banks in the London
interbank market selected by the Trustee to provide the Trustee with offered
quotations for deposits in U.S. dollars for a period of one month, commencing
on the first day of such Series 2005-2 Interest Period, to prime banks in the
London interbank market at approximately 11:00 a.m., London time, on such LIBOR
Determination Date and in a principal amount equal to an amount of not less
than $250,000 that is representative of a single transaction in such market at
such time.  If at least two such
quotations are provided, “LIBOR” for such Series 2005-2 Interest Period will be
the arithmetic mean of such quotations (rounded upwards to the nearest one
sixty-fourth of one percent (1/64%)); or

If fewer than two such
quotations are provided, “LIBOR” for such Series 2005-2 Interest Period will be
the arithmetic mean of rates quoted by three major banks in The City of New
York selected by the Trustee at approximately 11:00 a.m., New York City time,
on such LIBOR Determination Date for loans in U.S. dollars to leading European
banks, for a period of one month, commencing on the first day of such Series
2005-2 Interest Period, and in a principal amount equal to an amount of not
less than $250,000 that is representative of a single transaction in such
market at such time; provided, however, that if the banks
selected as aforesaid by such Trustee are not quoting rates as mentioned in
this sentence, “LIBOR” for such Series 2005-2 Interest Period will be the same
as “LIBOR” for the immediately preceding Series 2005-2 Interest Period.

“LIBOR Determination Date”
means, with respect to any Series 2005-2 Interest Period, the second London
Banking Day preceding the first day of such Series 2005-2 Interest Period.

 

15

 

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

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

“MCA Unpaid Fee Amount”
has the meaning specified in Section 2.7(f)  of this Series Supplement.

“Measurement Month” means, as of any date of
determination, each calendar month, or the smallest number of consecutive
calendar months, preceding such date, in which at least the lesser of the
following (a) and (b) were sold at auction (excluding salvage sales): (a) the
greater of (x) the number of Series 2005-2 Non-Program Vehicles (including, for the avoidance of doubt, any Series
2005-2 Non-Program Vehicle that was a Series 2005-2 Program Vehicle but was
redesignated as a Series 2005-2 Non-Program Vehicle as a result of a
Manufacturer Event of Default, commencing in the calendar month in which such
redesignation occurs, but only for so long as such Series 2005-2 Non-Program
Vehicle is designated as a Series 2005-2 Non-Program Vehicle, and excluding
Series 2005-2 Ineligible Program Vehicles) that constitute one twelfth
of the number of the Series 2005-2 Non-Program Vehicles (including, for the avoidance of doubt, any Series
2005-2 Non-Program Vehicle that was a Series 2005-2 Program Vehicle but was
redesignated as a Series 2005-2 Non-Program Vehicle as a result of a
Manufacturer Event of Default, commencing in the calendar month in which such
redesignation occurs, but only for so long as such Series 2005-2 Non-Program Vehicle
is designated as a Series 2005-2 Non-Program Vehicle, and excluding Series
2005-2 Ineligible Program Vehicles) as of the last day of such calendar
month or consecutive calendar months and (y) 500, and (b) 2,000 Series 2005-2
Non-Program Vehicles (including, for the
avoidance of doubt, any Series 2005-2 Non-Program Vehicle that was a Series
2005-2 Program Vehicle but was redesignated as a Series 2005-2 Non-Program
Vehicle as a result of a Manufacturer Event of Default, commencing in the
calendar month in which such redesignation occurs, but only for so long as such
Series 2005-2 Non-Program Vehicle is designated as a Series 2005-2 Non-Program
Vehicle, and excluding Series 2005-2 Ineligible Program Vehicles) were
sold at auction during such calendar month or consecutive calendar months; provided, however, that no calendar month included in a
Measurement Month shall be included in any other Measurement Month.

“Measurement Month Average”
means, with respect to any Measurement Month, the lesser of (a) the percentage
equivalent of a fraction, the numerator of which is the aggregate amount of
Disposition Proceeds and Termination Payments paid or payable in respect of all
Series 2005-2 Non-Program Vehicles (including, for the avoidance of doubt, any
Series 2005-2 Non-Program Vehicle that was a Series 2005-2 Program Vehicle but
was redesignated as a Series 2005-2 Non-Program Vehicle as a result of a
Manufacturer Event of Default, commencing in the calendar month in which such
redesignation occurs, but only for so long as such Series 2005-2 Non-Program
Vehicle is 

 

16

 

designated as a Series 2005-2
Non-Program Vehicle, and excluding Series 2005-2 Ineligible Program Vehicles)
(excluding salvage sales) that are sold at auction or otherwise during such
Measurement Month and the two Measurement Months preceding such Measurement
Month, and the denominator of which is the Net Book Value of such Series 2005-2
Non-Program Vehicles (including, for the avoidance of doubt, any Series 2005-2
Non-Program Vehicle that was a Series 2005-2 Program Vehicle but was
redesignated as a Series 2005-2 Non-Program Vehicle as a result of a
Manufacturer Event of Default, commencing in the calendar month in which such
redesignation occurs, but only for so long as such Series 2005-2 Non-Program
Vehicle is designated as a Series 2005-2 Non-Program Vehicle, and excluding
Series 2005-2 Ineligible Program Vehicles) (excluding salvage sales) that are
sold at auction or otherwise during such Measurement Month and the two
Measurement Months preceding such Measurement Month, measured as of the dates
of their respective sales and (b) 100%; provided, that for purposes of
determining the Net Book Value of any Series 2005-2 Program Vehicle that was
redesignated as a Series 2005-2 Non-Program Vehicle as a result of a
Manufacturer Event of Default, notwithstanding the definition of Net Book Value
set forth in the Base Indenture, Net Book Value shall be determined, for
purposes of calculating the Measurement Month Average, by applying the
Depreciation Schedule (and applicable Depreciation Charges) established for
such Series 2005-2 Non-Program Vehicle when such Series 2005-2 Non-Program
Vehicle was redesignated in accordance with the provisions of the applicable Lease.

“Mitsubishi” means Mitsubishi Motors Corp.

“Monthly Total Principal Allocation” means for
any Related Month the sum of all Series 2005-2 Principal Allocations with
respect to such Related Month and any amounts deposited in the Series 2005-2
Collection Account pursuant to Section 2.3(h)(iii)(B) of this Series
Supplement.

“Monthly
Variable Rent” has the meaning specified in Section 9 of each Annex to the
Leases.

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

“Note Rate” means, with
respect to the Series 2005-2 Notes of any class, the Class A-1 Note Rate, the
Class A-2 Note Rate, the Class A-3 Note Rate, the Class A-4 Note Rate or the
Class A-5 Note Rate, as applicable.

“Outstanding” means with
respect to the Series 2005-2 Notes, all Series 2005-2 Notes theretofore
authenticated and delivered under the Indenture, except (a) Series
2005-2 Notes theretofore cancelled or delivered to the Registrar for
cancellation, (b) Series 2005-2 Notes which have not been presented for payment
but funds for the payment of which are on deposit in the Series 2005-2
Distribution Account and are available for payment of such Series 2005-2 Notes,
and Series 2005-2 Notes which are considered paid pursuant to Section 8.1 of the Base Indenture or (c) Series 2005-2 Notes 

 

17

 

in exchange for or in lieu of
other Series 2005-2 Notes which have been authenticated and delivered pursuant
to the Indenture unless proof satisfactory to the Trustee is presented that any
such Series 2005-2 Notes are held by a purchaser for value.

“Past Due Rent Payment”
has the meaning specified in Section 2.2(d) of this Series Supplement.

“Permanent Global Class A-1 Note” has the
meaning specified in Section 6.2 of this Series Supplement.

“Permanent Global Class A-2 Note” has the
meaning specified in Section 6.2 of this Series Supplement.

“Permanent Global Class A-3 Note” has the
meaning specified in Section 6.2 of this Series Supplement.

“Permanent Global Class A-4 Note” has the
meaning specified in Section 6.2 of this Series Supplement.

“Permanent Global Class A-5 Note” has the
meaning specified in Section 6.2 of this Series Supplement.

“Permanent Global Notes”
has the meaning specified in Section 6.2 of this Series
Supplement.

“Preference Amount” has
the meaning specified in the Insurance Agreement.

“Pre-Preference Period Demand
Note Payments” means, as of any date of determination, the aggregate amount
of all proceeds of demands made on the Series 2005-2 Demand Note included in
the Series 2005-2 Demand Note Payment Amount as of the Series 2005-2 Letter of
Credit Termination Date that were paid by Vanguard more than one year before
such date of determination; provided, however, that if an Event
of Bankruptcy (or the occurrence of an event described in clause (a) of
the definition thereof, without the lapse of a period of 60 consecutive days)
with respect to Vanguard occurs during such one year period, (x) the
Pre-Preference Period Demand Note Payments as of any date during the period
from and including the date of the occurrence of such Event of Bankruptcy to
and including the conclusion or dismissal of the proceedings giving rise to
such Event of Bankruptcy without continuing jurisdiction by the court in such
proceedings shall equal the Pre-Preference Period Demand Note Payments as of
the date of such occurrence and (y) the Pre-Preference Period Demand Note
Payments as of any date after the conclusion or dismissal of such proceedings
shall equal the Series 2005-2 Demand Note Payment Amount as of the date of the
conclusion or dismissal of such proceedings.

 

18

 

“Principal Deficit Amount”
means, with respect to any Distribution Date, the excess, if any, of (i) the
Series 2005-2 Adjusted Invested Amount on such Distribution Date, over (ii) the
Series 2005-2 Aggregate Asset Amount on such Distribution Date; provided,
however, the Principal Deficit Amount on any date that is prior to the
last Final Distribution Date with respect to the Series 2005-2 Notes of any
class occurring during the period commencing on and including the date of the
filing by any Lessee of a petition for relief under Chapter 11 of the
Bankruptcy Code to but excluding the date on which such Lessee shall have
resumed making all payments of Monthly Variable Rent required to be made under
the Lease to which such Lessee is a party, shall mean the excess, if any, of
(x) the Series 2005-2 Adjusted Invested Amount on such date over (y) the sum of
(1) the Series 2005-2 Aggregate Asset Amount on such date and (2) the lesser of
(a) the Series 2005-2 Liquidity Amount on such date and (b) the Series 2005-2
Required Liquidity Amount on such date.

“Pro Rata Share” means,
with respect to any Series 2005-2 Letter of Credit Provider as of any date, the
fraction (expressed as a percentage) obtained by dividing (A) the available
amount under such Series 2005-2 Letter of Credit Provider’s Series 2005-2
Letter of Credit as of such date by (B) an amount equal to the aggregate
available amount under all Series 2005-2 Letters of Credit, as of such date; provided,
that only for purposes of calculating the Pro Rata Share with respect to any
Series 2005-2 Letter of Credit Provider as of any date, if such Series 2005-2
Letter of Credit Provider has not complied with its obligation to pay the
Trustee the amount of any draw under its Series 2005-2 Letter of Credit made
prior to such date, the available amount under such Series 2005-2 Letter of
Credit Provider’s Series 2005-2 Letter of Credit as of such date shall be
treated as reduced (for calculation purposes only) by the amount of such unpaid
demand and shall not be reinstated for purposes of such calculation unless and
until the date as of which such Series 2005-2 Letter of Credit Provider has
paid such amount to the Trustee and has been reimbursed by any of the Lessees
for such amount (provided that the foregoing calculation shall not in
any manner reduce the undersigned’s actual liability in respect of any failure
to pay any demand under its Series 2005-2 Letter of Credit).

“Qualified Interest Rate Hedge Provider” means
a Series 2005-2 Interest Rate Hedge Provider that (A) has, or has all of its
obligations under its Series 2005-2 Interest Rate Hedge guaranteed by a person
that has, a short-term senior and unsecured debt rating of at least “A-1” from
Standard & Poor’s, (B) has, or has all of its obligations under its Series
2005-2 Interest Rate Hedge guaranteed by a person that has, a short-term senior
unsecured debt rating of “P-1” from Moody’s and a long-term senior unsecured
debt rating of at least “A1” from Moody’s and (C) is acceptable to the
Surety Provider.

“Rating Agencies” means,
with respect to the Series 2005-2 Notes, Standard & Poor’s, Moody’s and any
other nationally recognized rating agency rating the Series 2005-2 Notes at the
request of ARG.

“Record Date” means, with
respect to any Distribution Date, the last day of the Related Month.

 

19

 

“Required Noteholders”
means, with respect to the Series 2005-2 Notes, subject to Section 8.9
of this Series Supplement, and on any date of determination, means Series
2005-2 Noteholders holding more than 50% of the Series 2005-2 Invested Amount
(excluding any Series 2005-2 Notes held by ARG or any Affiliate of ARG).

“Restricted Global Class A-1
Note” has the meaning specified in Section 6.1 of this Series
Supplement.

“Restricted Global Class A-2
Note” has the meaning specified in Section 6.1 of this Series
Supplement.

“Restricted Global Class A-3
Note” has the meaning specified in Section 6.1 of this Series
Supplement.

“Restricted Global Class A-4
Note” has the meaning specified in Section 6.1 of this Series
Supplement.

“Restricted Global Class A-5
Note” has the meaning specified in Section 6.1 of this Series
Supplement.

“Restricted Global Notes”
has the meaning specified in Section 6.1 of this Series Supplement.

“Series 2005-2 Accounts”
has the meaning specified in Section 2.6 of this Series Supplement.

“Series 2005-2 Accrued
Amounts” means, on any date of determination, the sum of (i) accrued and unpaid
interest payable on the Series 2005-2 Notes as of such date, (ii) the Surety
Provider Fee, if any, payable by ARG as of such date, (iii) any other amounts
due as of such date to the Surety Provider pursuant to the Insurance Agreement
(other than unreimbursed principal draws under the Surety Bond), (iv) any amounts payable by ARG under
each Series 2005-2 Interest Rate Hedge as of such date and (v) the product of (A) the Carrying Charges payable on such date and
(B) the Series 2005-2 Percentage as of the immediately preceding Determination
Date.

“Series 2005-2 Accrued
Interest Account” has the meaning specified in Section 2.1(b) of
this Series Supplement.

“Series 2005-2 Additional
Account Collateral” has the meaning specified in Section 2.1(g) of
this Series Supplement.

“Series 2005-2 Adjusted Invested Amount” means,
as of any date of determination, the excess, if any, of (A) the Series 2005-2
Invested Amount as of such date over (B) the sum of (1) the amount of cash and
Permitted Investments on deposit in the Series 2005-2 Excess Collection Account
and (2) the amount of cash and Permitted 

 

20

 

Investments on deposit in the Series 2005-2 Collection
Account and available for reduction of the Series 2005-2 Invested Amount, in
each case, as of such date.

“Series 2005-2 Adjusted
Periodic Interest” means the Class A-1 Adjusted Periodic Interest, the
Class A-2 Adjusted Periodic Interest, the Class A-3 Adjusted Periodic Interest,
the Class A-4 Adjusted Periodic Interest or the Class A-5 Adjusted Periodic
Interest, as applicable.

“Series 2005-2 Aggregate
Asset Amount” means, as of any date of determination, the product of (a)
the Series 2005-2 Invested Percentage (with respect to principal) as of such
date and (b) the Aggregate Asset Amount as of such date.

“Series 2005-2 Aggregate Asset Percentage”
means, as of any date of determination, the percentage equivalent of a
fraction, the numerator of which is the Series 2005-2 Required Aggregate Asset
Amount as of such date, and the denominator of which is equal to the Required
Aggregate Asset Amount as of such date.

“Series 2005-2 Aggregate
Kia/Hyundai/Suzuki/Volkswagen Amount” means, as of any date of
determination, an amount equal to the sum, rounded to the nearest $100,000, of
the following amounts to the extent that such amounts are included in the
definition of “Aggregate Asset Amount” for such date:  (i) the Net Book Value of all Series 2005-2
Program Vehicles and Series 2005-2 Non-Program Vehicles, in each case that are
Eligible Vehicles as of such date that were manufactured by Kia, Hyundai,
Suzuki or Volkswagen and not turned in to Kia, Hyundai, Suzuki or Volkswagen,
as the case may be, pursuant to its Manufacturer Program, if any, not delivered
for Auction pursuant to its Manufacturer Program, if any, or not otherwise sold
or deemed to be sold under the related Leasing Company Related Documents, (ii)
all amounts receivable by a Leasing Company as of such date (other than
Excluded Payments) from Kia, Hyundai, Suzuki or Volkswagen under Manufacturer
Programs with respect to Eligible Vehicles (other than Exchanged Vehicles) (as
of the applicable disposition date) that were manufactured by Kia, Hyundai,
Suzuki or Volkswagen, as the case may be, and turned in to such Manufacturers
pursuant to any such Manufacturer Program or delivered for Auction pursuant to
any such Manufacturer Program and the aggregate of all Eligible Receivables
owned by a Leasing Company, financed under the related Leasing Company
Indenture and owed by Kia, Hyundai, Suzuki or Volkswagen under and in
accordance with a Manufacturer Program, (iii) with regard to Eligible Vehicles
(as of the applicable disposition date) that were manufactured by Kia, Hyundai,
Suzuki or Volkswagen that have been delivered for Auction pursuant to a
Manufacturer Program with Kia, Hyundai, Suzuki or Volkswagen, as the case may
be, all amounts receivable (other than amounts specified in clause (ii)
above) from any person or entity in connection with the Auction of such
Eligible Vehicles as of such date, (iv) with regard to Eligible Vehicles that
were Series 2005-2 Program Vehicles or Series 2005-2 Non-Program Vehicles (as
of the applicable disposition date), in each case, that were manufactured by
Kia, Hyundai, Suzuki or Volkswagen that have been turned in to the
Manufacturer, delivered for Auction or otherwise sold, any Casualty Payments or
Termination Payments with respect 

 

21

 

to such Eligible Vehicles due
and payable as of such date under the Leases, (v) with regard to Eligible
Vehicles that were Series 2005-2 Program Vehicles or Series 2005-2 Non-Program
Vehicles (as of the applicable disposition date), in each case, that were
manufactured by Kia, Hyundai, Suzuki or Volkswagen that have been turned in to
the Manufacturer, delivered for Auction or otherwise sold, any accrued and
unpaid Monthly Base Rent under the Leases with respect to such Eligible
Vehicles (net of amounts set forth in clauses (ii), (iii) and (iv)
above), and (vi) if
such date of determination is during the period from and including a
Determination Date to but excluding the next Program Distribution Date, any
accrued and unpaid Monthly Base Rent under the Leases with respect to such
Eligible Vehicles that have not been turned in to the Manufacturer for Auction
or otherwise sold, as of such date of determination.

“Series 2005-2 Amortization
Event” has the meaning specified in Article III of this Series
Supplement.

“Series 2005-2 ARG
Liquidation Event” means, so long as such event or condition continues, (i)
the occurrence of an Event of Bankruptcy with respect to ARG, any Leasing
Company, the general partner of any Leasing Company, any Lessee or Vanguard
Holdings or the Intermediary or (ii) any event or condition of the type
specified in clauses (a) through (l), (o), and (q)
of Article III of this Series Supplement that continues for thirty (30)
days (without double counting the cure period, if any, provided therein); provided,
however, that any event or condition of the type specified in clauses
(a) through (i),  (l), (o), and (q) of Article
III of this Series Supplement shall not constitute a Series 2005-2 ARG
Liquidation Event if within such thirty (30) day period, such Amortization
Event shall have been cured, and, after such cure is provided for, the Trustee
shall have received the
written consent of the Required Noteholders, waiving the occurrence of such
Series 2005-2 ARG Liquidation Event.

“Series 2005-2 Available Cash
Collateral Account Amount” means, as of any date of determination, the
amount on deposit in the Series 2005-2 Cash Collateral Account as of such date
(after giving effect to any deposits thereto and withdrawals and releases
therefrom on such date).

“Series 2005-2 Available
Interest Rate Hedge Collateral Account Amount” means, as of any date of
determination, the amount on deposit in the Series 2005-2 Interest Rate Hedge
Collateral Account as of such date (after giving effect to any deposits thereto
and withdrawals and releases therefrom on such date).

“Series 2005-2 Available
Reserve Account Amount” means, as of any date of determination, the amount
on deposit in the Series 2005-2 Reserve Account as of such date (after giving
effect to any deposits thereto and withdrawals and releases therefrom on such
date).

“Series 2005-2 Bankrupt
Manufacturer” means, as of any day, each Manufacturer for which an Event of
Bankruptcy has occurred; provided that any such 

 

22

 

Manufacturer for which an Event
of Bankruptcy has occurred shall cease to constitute a Series 2005-2 Bankrupt Manufacturer when it has satisfied the Series 2005-2
Confirmation Condition with respect to such Event of Bankruptcy.

“Series 2005-2 Cash
Collateral Account” has the meaning specified in Section 2.8(f) of
this Series Supplement.

“Series 2005-2 Cash
Collateral Account Collateral” has the meaning specified in Section
2.8(a) of this Series Supplement.

“Series 2005-2 Cash
Collateral Account Surplus” means, with respect to any Distribution Date,
the lesser of (a) the Series 2005-2 Available Cash Collateral Account Amount
and (b) the lesser of (A) the excess, if any, of the Series 2005-2 Liquidity
Amount over the Series 2005-2 Required Liquidity Amount on such Distribution
Date (after giving effect to any withdrawal from the Series 2005-2 Reserve
Account on such Distribution Date) and (B) the excess, if any, of the Series
2005-2 Enhancement Amount over the Series 2005-2 Required Enhancement Amount on
such Distribution Date (after giving effect to any withdrawal from the Series
2005-2 Reserve Account on such Distribution Date); provided, however,
that, on any date after the Series 2005-2 Letter of Credit Termination Date,
the Series 2005-2 Cash Collateral Account Surplus shall mean the excess, if
any, of (x) the Series 2005-2 Available Cash Collateral Account Amount over (y)
the Series 2005-2 Demand Note Payment Amount minus the Pre-Preference Period
Demand Note Payments as of such date.

“Series 2005-2 Cash
Collateral Percentage” means, as of any date of determination, the
percentage equivalent of a fraction, the numerator of which is the Series
2005-2 Available Cash Collateral Account Amount as of such date and the
denominator of which is the Series 2005-2 Letter of Credit Liquidity Amount as
of such date.

“Series 2005-2 Closing Date”
means April 1, 2005.

“Series 2005-2 Collateral” means the
Collateral, each Series 2005-2 Letter of Credit, the Series 2005-2 Demand Note,
each Series 2005-2 Interest Rate Hedge, the Series 2005-2 Excess Collection
Account Collateral, the Series 2005-2 Additional Account Collateral, the Series
2005-2 Cash Collateral Account Collateral, the Series 2005-2 Distribution
Account Collateral and the Series 2005-2 Reserve Account Collateral.

“Series 2005-2 Collection
Account” has the meaning specified in Section 2.1(b) of this Series
Supplement.

“Series 2005-2 Confirmation
Condition” with respect to any Series 2005-2 Bankrupt Manufacturer means a
condition that is satisfied when the bankruptcy court having jurisdiction over
the Series 2005-2 Bankrupt Manufacturer issues an order, for so long as that
order remains in effect, approving: (i) the assumption of the Series 2005-2
Bankrupt Manufacturer’s Manufacturer Program (and the related Assignment
Agreements) by the Series 2005-2 

 

23

 

Bankrupt Manufacturer or the
trustee in bankruptcy of the Series 2005-2 Bankrupt Manufacturer, as
applicable, under Section 365 of the Bankruptcy Code, provided that at the time
of the assumption, all amounts due from the Series 2005-2 Bankrupt Manufacturer
under the Manufacturer Program have been paid and all other defaults by the
Series 2005-2 Bankrupt Manufacturer under the Manufacturer Program have been
cured or (ii) the execution, delivery and performance by the Series 2005-2
Bankrupt Manufacturer of a new post-petition Series 2005-2 Eligible
Manufacturer Program (and the related Assignment Agreements) on the same terms
and covering the same Vehicles as the Series 2005-2 Bankrupt Manufacturer’s
Manufacturer Program (and the related Assignment Agreements) in effect on the
date the Series 2005-2 Bankrupt Manufacturer suffered an event of bankruptcy,
provided that at the time of the execution and delivery of the new
post-petition Series 2005-2 Eligible Manufacturer Program, all amounts due and
payable by the Series 2005-2 Bankrupt Manufacturer under the previous Series 2005-2 Eligible Manufacturer Program have been paid and all other
defaults by the Series 2005-2 Bankrupt Manufacturer under the previous Series 2005-2 Eligible Manufacturer Program have
been cured.

“Series 2005-2 Controlled
Amortization Amount” means the sum of the Class A-1/A-2 Controlled
Amortization Amount, the Class A-3 Controlled Amortization Amount and the Class
A-4/A-5 Controlled Amortization Amount.

“Series 2005-2 Controlled
Amortization Period” means the Class A-1/A-2 Controlled Amortization
Period, the Class A-3 Controlled Amortization Period and/or the Class A-4/A-5
Controlled Amortization Period, as applicable.

“Series 2005-2 Controlled Distribution Amount”
means, with respect to each Related Month, the sum of the Class A-1/A-2
Controlled Distribution Amount, the Class A-3 Controlled Distribution Amount
and the Class A-4/A-5 Controlled Distribution Amount.

“Series 2005-2 Defaulted
Manufacturer” means
a Manufacturer with respect to whom a Manufacturer Event of Default has
occurred and is continuing; provided that for the avoidance of doubt a
Manufacturer that is a Series 2005-2 Defaulted Manufacturer solely as a result
of being a Series 2005-2 Bankrupt Manufacturer shall cease to constitute a
Series 2005-2 Defaulted Manufacturer when it has satisfied the Series 2005-2
Confirmation Condition.

“Series 2005-2 Defaulted
Manufacturer Vehicle Amount” means, as of any date of determination, with
respect to each Series 2005-2 Defaulted Manufacturer as of such date, and
solely for so long as such Manufacturer is a Series 2005-2 Defaulted
Manufacturer, an amount equal to the sum, rounded to the nearest $100,000, of
the following amounts to the extent that such amounts are included in the
definition of “Aggregate Asset Amount” for such date:  (i) the Net Book Value of all Series 2005-2
Program Vehicles and Series 2005-2 Non-Program Vehicles, in each case that are 

 

24

 

Eligible Vehicles as of such
date that were manufactured by Series 2005-2 Defaulted Manufacturer and not
turned in to such Series 2005-2 Defaulted Manufacturer pursuant to its
Manufacturer Program, if any, not delivered for Auction pursuant to its
Manufacturer Program if any, or not otherwise sold or deemed to be sold under
the related Leasing Company Related Documents, (ii) all amounts receivable by a
Leasing Company as of such date (other than Excluded Payments) from such Series
2005-2 Defaulted Manufacturer under Manufacturer Programs with respect to
Eligible Vehicles (other than Exchanged Vehicles) (as of the applicable
disposition date) that were manufactured by such Series 2005-2 Defaulted
Manufacturer and turned in to such Series 2005-2 Defaulted Manufacturer
pursuant to any such Manufacturer Program or delivered for Auction pursuant to
any such Manufacturer Program and the aggregate of all Eligible Receivables
owned by a Leasing Company, financed under the related Leasing Company Indenture
and owed by such Series 2005-2 Defaulted Manufacturer under and accordance with
a Manufacturer Program, (iii) with regard to Eligible Vehicles that were Series
2005-2 Program Vehicles (as of the applicable disposition date) that were
manufactured by such Series 2005-2 Defaulted Manufacturer that have been
delivered for Auction, all amounts receivable (other than amounts specified in clause
(ii) above) from any person or entity in connection with the Auction of
such Eligible Vehicles as of such date, (iv) with regard to Eligible Vehicles
that were Series 2005-2 Program Vehicles or Series 2005-2 Non-Program Vehicles
(as of the applicable disposition date), in each case that were manufactured by
such Series 2005-2 Defaulted Manufacturer that have been turned in to the
Manufacturer, delivered for Auction or otherwise sold, any Casualty Payments or
Termination Payments with respect to such Eligible Vehicles due and payable as
of such date under the Leases, (v) with regard to Eligible Vehicles that were
Series 2005-2 Program Vehicles or Series 2005-2 Non-Program Vehicles (as of the
applicable disposition date), in each case that were manufactured by such
Series 2005-2 Defaulted Manufacturer that have been turned in to the
Manufacturer, delivered for Auction or otherwise sold, any accrued and unpaid
Monthly Base Rent under the Leases with respect to such Eligible Vehicles (net
of amounts set forth in clauses (ii), (iii) and (iv)
above), and (vi) if
such date of determination is during the period from and including a Determination
Date to but excluding the next Program Distribution Date, any accrued and
unpaid Monthly Base Rent under the Leases with respect to such Eligible
Vehicles that have not been turned in to the Manufacturer for Auction or
otherwise sold, as of such date of determination.

“Series 2005-2 Deficiency Amount” has the
meaning specified in Section 2.3(g)(iii) of this Series Supplement.

“Series 2005-2 Demand Note”
means the demand note made by Vanguard to ARG in the aggregate principal amount
of $7,500,000, substantially in the form of Exhibit B to this Series
Supplement, as amended, modified or restated from time to time.

“Series 2005-2 Demand Note
Payment Amount” means, as of the Series 2005-2 Letter of Credit Termination
Date, the aggregate amount of all proceeds of demands made on the Series 2005-2
Demand Note pursuant to Section 2.5(b) or (c) of 

 

25

 

this Series Supplement that were
deposited into the Series 2005-2 Distribution Account and paid to the Series
2005-2 Noteholders during the one year period ending on the Series 2005-2
Letter of Credit Termination Date; provided, however, that if an Event of Bankruptcy (or the occurrence of an
event described in clause (a) of the definition thereof, without the
lapse of a period of 60 consecutive days) with respect to Vanguard shall have
occurred during such one year period, the Series 2005-2 Demand Note Payment
Amount as of the Series 2005-2 Letter of Credit Termination Date shall equal
the Series 2005-2 Demand Note Payment Amount as if it were calculated as of the
date of such occurrence.

“Series 2005-2 Deposit Date”
has the meaning specified in Section 2.2 of this Series Supplement.

“Series 2005-2 Distribution
Account” has the meaning specified in Section 2.9(a) of this Series
Supplement.

“Series 2005-2 Distribution
Account Collateral” has the meaning specified in Section 2.9(d) of
this Series Supplement.

“Series 2005-2 Eligible
Letter of Credit Provider” means (a) a commercial bank having total assets
in excess of $500,000,000, (b) a finance company, insurance company or other
financial institution that in the ordinary course of business issues letters of
credit and has total assets in excess of $200,000,000, and with respect to
which providing or becoming an assignee of the obligations of a Series 2005-2
Letter of Credit Provider would not constitute a prohibited transaction under
Section 406 of ERISA or Section 4975 of the Code or (c) any other financial
institution, in each case, satisfactory to ARG and the Surety Provider and
having, at the time of the issuance of the related Series 2005-2 Letter of
Credit, a long-term debt rating of at least “AA” from Standard & Poor’s and
at least “Aa3” from Moody’s and a short-term debt rating of “P-1” from Moody’s.

 “Series 2005-2 Eligible Manufacturer
Program” means, at any time, a Manufacturer Program that is in full force
and effect with a Series 2005-2 Eligible Program Manufacturer; provided
that with respect to a Series 2005-2 Eligible Program Manufacturer that has experienced
a Manufacturer Event of Default due to the occurrence of an Event of Bankruptcy
with respect to such Series 2005-2 Eligible Program Manufacturer, prior to the
Manufacturer Program of such Series 2005-2 Eligible Program Manufacturer
constituting a “Series 2005-2 Eligible Manufacturer Program” hereunder
following the cessation of such Manufacturer Event of Default, such
Manufacturer shall be, or solely to the extent such Manufacturer’s parent
provides a guaranty of such Manufacturer’s obligations, such Manufacturer’s
parent, shall be rated at least “BBB” by Standard & Poor’s and “Baa2” by
Moody’s; provided, further, that with respect to any new
Manufacturer Program (including a new model year Manufacturer Program of a
Series 2005-2 Eligible Program Manufacturer and a Manufacturer Program of a new
Manufacturer) that is proposed for consideration after the date hereof as a
Series 2005-2 

 

26

 

Eligible Manufacturer Program,
prior to such new Manufacturer Program constituting a “Series 2005-2 Eligible
Manufacturer Program” hereunder, ARG shall have satisfied the Series 2005-2
Rating Agency Confirmation and Consent Condition with respect to such Series
2005-2 Eligible Manufacturer Program (the Surety Provider to decide whether to
consent promptly and without undue delay); and provided, further,
that, if there is a material change to a Manufacturer Program during a model
year, ARG shall have satisfied the Series 2005-2 Rating Agency Confirmation and
Consent Condition with respect to such change prior to such Manufacturer
Program, as changed, constituting a “Series 2005-2 Eligible Manufacturer
Program” (the Surety Provider to decide whether to consent promptly and without
undue delay).

“Series 2005-2 Eligible Non-Program
Manufacturer” means (a) each Manufacturer listed on Exhibit C-1 to
this Series Supplement and (b) any other Manufacturer with respect to which ARG
has satisfied the Series 2005-2 Rating Agency Confirmation and Consent
Condition.

“Series 2005-2 Eligible
Program Manufacturer” means (a) any of (i) a Manufacturer who is listed on Exhibit
C-2 to this Series Supplement; provided that (w) Hyundai shall be excluded from the
definition of Series 2005-2 Eligible Program Manufacturer for so long as
Hyundai is not rated at least “BBB-” by Standard
& Poor’s and at least “Baa3” by Moody’s, but only until such time as
Hyundai is rated at least “BBB-” by
Standard & Poor’s and at least “Baa3” from Moody’s; (x) Kia shall be
excluded from the definition of Series 2005-2 Eligible Program Manufacturer for
so long as Kia is not rated at least “BBB-” by Standard & Poor’s and at least “Baa3” by Moody’s, but only until such
time as Kia is rated at least “BBB-” by Standard & Poor’s and at least “Baa3”
from Moody’s; (y) Suzuki shall be excluded from the definition of Series
2005-2 Eligible Program Manufacturer for so long as Suzuki is not rated at
least “BBB-” by Standard & Poor’s and
at least “Baa3” by Moody’s, but only until such time as Suzuki is rated at
least “BBB-” by Standard & Poor’s and at least “Baa3” from Moody’s and (z)
Volkswagen shall be excluded from the definition of Series 2005-2
Eligible Program Manufacturer for so long as Volkswagen is not rated at least “BBB-”
by Standard & Poor’s and at least “Baa3”
by Moody’s, but only until such time as Volkswagen is rated at least BBB- by
Standard & Poor’s and at least “Baa3” from Moody’s; provided  further
that upon the withdrawal of the rating of any such Manufacturer described in
clauses (w) through (z) above by a Rating Agency or upon the downgrade of any
such Manufacturer described in clauses (w) through (z) above by a Rating Agency
to a rating that would require exclusion of such Manufacturer described in
clauses (w) through (z) above from this definition, for purposes of this
definition and each instance in which this definition is used in this Series
Supplement, such Manufacturer shall be deemed to be rated “BBB-” and/or “Baa3”,
as applicable, by the Rating Agency which downgraded such Manufacturer for a
period of 30 days following the date of such downgrade, (ii) a Manufacturer who, at the time that the Manufacturer Program to
which such Manufacturer is a party is proposed for consideration as a Series
2005-2 Eligible Manufacturer Program, is rated, or solely to the extent such
parent provides a guaranty of such Manufacturer’s obligations under such
Manufacturer Program, whose parent is rated 

 

27

 

at least “BBB” by Standard &
Poor’s and at least “Baa3” by Moody’s and who is then acceptable to the Surety
Provider (who has agreed not to unreasonably withhold its acceptance of any
such Manufacturer) or (iii) with respect to which ARG has satisfied the Series
2005-2 Rating Agency Confirmation and Consent Condition, (b) who has a
Manufacturer Program and (c) who has not experienced a Manufacturer Event of
Default that is continuing.

“Series 2005-2 Enhancement
Amount” means, as of any date of
determination, the sum of (i) the Series 2005-2 Overcollateralization Amount,
(ii) the Series 2005-2 Letter of Credit Amount and (iii) the Series 2005-2
Available Reserve Account Amount, in each case as of such date.

“Series 2005-2 Enhancement
Deficiency” means, as of any date of determination, the amount by which the
Series 2005-2 Enhancement Amount is less than the Series 2005-2 Required
Enhancement Amount, in each case as of such date.

“Series 2005-2 Excess
Collection Account” has the meaning specified in Section 2.1(b) of
this Series Supplement.

“Series 2005-2 Excess
Collection Account Collateral” has the meaning specified in Section
2.1(f) of this Series Supplement.

“Series 2005-2 Hyundai Amount”
means, as of any date of determination, an amount equal to the sum, rounded to
the nearest $100,000, of the following amounts to the extent that such amounts
are included in the definition of “Aggregate Asset Amount” for such date:  (i) the Net Book Value of all Series 2005-2
Program Vehicles and Series 2005-2 Non-Program Vehicles, in each case that are
Eligible Vehicles as of such date that were manufactured by Hyundai and not
turned in to Hyundai pursuant to its Manufacturer Program, if any, not
delivered for Auction pursuant to its Manufacturer Program if any, or not
otherwise sold or deemed to be sold under the related Leasing Company Related Documents,
(ii) all amounts receivable by a Leasing Company as of such date (other than
Excluded Payments) from Hyundai under Manufacturer Programs with respect to
Eligible Vehicles (other than Exchanged Vehicles) (as of the applicable
disposition date) that were manufactured by Hyundai and turned in to Hyundai
pursuant to any such Manufacturer Program or delivered for Auction pursuant to
any Manufacturer Program and the aggregate of all Eligible Receivables owned by
a Leasing Company, financed under the related Leasing Company Indenture and
owed by Hyundai under and accordance with a Manufacturer Program, (iii) with
regard to Eligible Vehicles that were Series 2005-2 Program Vehicles (as of the
applicable disposition date) that were manufactured by Hyundai that have been
delivered for Auction, all amounts receivable (other than amounts specified in clause
(ii) above) from any person or entity in connection with the Auction of
such Eligible Vehicles as of such date, (iv) with regard to Eligible Vehicles
that were Series 2005-2 Program Vehicles or Series 2005-2 Non-Program Vehicles
(as of the applicable disposition date), in each case that were manufactured by
Hyundai that have been turned in to the Manufacturer, delivered for 

 

28

 

Auction or otherwise sold, any
Casualty Payments or Termination Payments with respect to such Eligible
Vehicles due and payable as of such date under the Leases, (v) with regard to
Eligible Vehicles that were Series 2005-2 Program Vehicles or Series 2005-2
Non-Program Vehicles (as of the applicable disposition date), in each case that
were manufactured by Hyundai that have been turned in to the Manufacturer,
delivered for Auction or otherwise sold, any accrued and unpaid Monthly Base Rent
under the Leases with respect to such Eligible Vehicles (net of amounts set
forth in clauses (ii), (iii) and (iv) above), and (vi) if such date of determination
is during the period from and including a Determination Date to but excluding
the next Program Distribution Date, any accrued and unpaid Monthly Base Rent
under the Leases with respect to such Eligible Vehicles that have not been
turned in to the Manufacturer for Auction or otherwise sold, as of such date of
determination.

“Series 2005-2 Ineligible Program Vehicle”
means an Eligible Vehicle that is a Program Vehicle but that is not subject to
a Series 2005-2 Eligible Manufacturer Program.

“Series 2005-2 Initial Interest Rate Hedge Provider”
means Lehman Brothers Special Financing Inc.

“Series 2005-2 Initial
Interest Rate Hedge Provider Hedges” means (x) the Series 2005-2 Initial Interest Rate Hedge
Provider’s Class A-2 Interest Rate Hedge, Class A-3 Interest Rate Hedge and
Class A-5 Interest Rate Hedge and (y) each other rate hedge transaction agreement
entered into by ARG with the Series 2005-2 Initial Interest Rate Hedge Provider
in accordance with the terms of the Base
Indenture that is designated from time to time as a Series 2005-2
Initial Interest Rate Hedge Provider Hedge in a writing signed by ARG and the
Series 2005-2 Initial Interest Rate Hedge Provider.

“Series 2005-2 Initial
Invested Amount” means the sum of the Class A-1 Initial Invested Amount,
the Class A-2 Initial Invested Amount, the Class A-3 Initial Invested Amount,
the Class A-4 Initial Invested Amount and the Class A-5 Initial Invested
Amount.

“Series 2005-2 Interest
Period” means a period commencing on and including a Distribution Date and
ending on and including the day preceding the next succeeding Distribution
Date; provided, however, that the initial Series 2005-2 Interest
Period shall commence on and include the Series 2005-2 Closing Date and end on
and include April 19, 2005.

“Series 2005-2 Interest Rate
Hedge” means the Class A-2 Interest Rate Hedge, the Class A-3 Interest Rate
Hedge or the Class A-5 Interest Rate Hedge, as applicable.

“Series 2005-2 Interest Rate
Hedge Collateral Account” has the meaning specified in Section 2.12(a)
of this Series Supplement.

 

29

 

“Series 2005-2 Interest Rate
Hedge Collateral Account Collateral” has the meaning specified in Section
2.12(d) of this Series Supplement.

“Series 2005-2 Interest Rate
Hedge Collateral Account Surplus” means, with respect to any date of
determination, the excess, if any, of the Series 2005-2 Available Interest Rate
Hedge Collateral Account Amount over the Series 2005-2 Required Interest Rate
Hedge Collateral Account Amount on such date.

“Series 2005-2 Interest Rate Hedge
Premium” means, for any Distribution Date, the sum of the
amount, if any, payable by ARG to each Series 2005-2 Interest Rate Hedge
Provider under its related Series 2005-2 Interest Rate Hedge
on such Distribution Date (excluding any termination payments), for so
long as no payment default by each such Series 2005-2 Interest Rate Hedge
Provider under its related Series 2005-2 Interest Rate Hedge has occurred and
is continuing.

“Series 2005-2 Interest Rate
Hedge Proceeds” means all amounts received by the Trustee from each Series
2005-2 Interest Rate Hedge Provider from time to time under its Series 2005-2
Interest Rate Hedge (including amounts received from a guarantor or from
collateral securing the obligations of such Series 2005-2 Interest Rate Hedge
Provider under its Series 2005-2 Interest Rate Hedge).

“Series 2005-2 Interest Rate
Hedge Provider” means a Class A-2 Interest Rate Hedge Provider, a Class A-3 Interest Rate
Hedge Provider or a Class A-5 Interest Rate Hedge Provider, as applicable.

“Series 2005-2 Invested
Amount” means the sum of the Class A-1 Invested Amount, the Class A-2
Invested Amount, the Class A-3 Invested Amount, the Class A-4 Invested Amount
or the Class A-5 Invested Amount.

“Series 2005-2 Invested
Percentage” means, as of any date of determination:

(i)            when used with respect to Principal
Collections, the percentage equivalent of a fraction (which percentage shall
never exceed 100%), the numerator of which is equal to the Series 2005-2
Required Aggregate Asset Amount, determined during the Series 2005-2 Revolving
Period as of the open of business on such date of determination, or, during the
Series 2005-2 Controlled Amortization Period and the Series 2005-2 Rapid
Amortization Period, as of the end of the Series 2005-2 Revolving Period, and
the denominator of which, with respect to all Series of Group I Notes, is the
greater of (I) the Aggregate Asset Amount as of the open of business on such
date of determination and (II) as of the open of business on the same date as
in clause (I), the Required Aggregate Asset Amount; and

(ii)           when used with respect to Interest
Collections, the percentage equivalent of a fraction (which percentage shall
never exceed 100%), the 

 

30

 

numerator of which is the Series 2005-2 Accrued Amounts on such date of
determination, and the denominator of which is the aggregate Accrued Amounts
with respect to all Series of Group I Notes on such date of determination.

“Series 2005-2 Kia Amount”
means, as of any date of determination, an amount equal to the sum, rounded to
the nearest $100,000, of the following amounts to the extent that such amounts
are included in the definition of “Aggregate Asset Amount” for such date:  (i) the Net Book Value of all Series 2005-2
Program Vehicles and Series 2005-2 Non-Program Vehicles, in each case that are
Eligible Vehicles as of such date that were manufactured by Kia and not turned
in to Kia pursuant to its Manufacturer Program, if any, not delivered for
Auction pursuant to its Manufacturer Program if any, or not otherwise sold or
deemed to be sold under the related Leasing Company Related Documents, (ii) all
amounts receivable by a Leasing Company as of such date (other than Excluded
Payments) from Kia under Manufacturer Programs with respect to Eligible
Vehicles (other than Exchanged Vehicles) (as of the applicable disposition
date) that were manufactured by Kia and turned in to Kia pursuant to any such
Manufacturer Program or delivered for Auction pursuant to any Manufacturer
Program and the aggregate of all Eligible Receivables owned by a Leasing
Company, financed under the related Leasing Company Indenture and owed by Kia
under and accordance with a Manufacturer Program, (iii) with regard to Eligible
Vehicles that were Series 2005-2 Program Vehicles (as of the applicable
disposition date) that were manufactured by Kia that have been delivered for
Auction, all amounts receivable (other than amounts specified in clause (ii)
above) from any person or entity in connection with the Auction of such
Eligible Vehicles as of such date, (iv) with regard to Eligible Vehicles that
were Series 2005-2 Program Vehicles or Series 2005-2 Non-Program Vehicles (as
of the applicable disposition date), in each case that were manufactured by Kia
that have been turned in to the Manufacturer, delivered for Auction or
otherwise sold, any Casualty Payments or Termination Payments with respect to
such Eligible Vehicles due and payable as of such date under the Leases, (v)
with regard to Eligible Vehicles that were Series 2005-2 Program Vehicles or
Series 2005-2 Non-Program Vehicles (as of the applicable disposition date), in
each case that were manufactured by Kia that have been turned in to the
Manufacturer, delivered for Auction or otherwise sold, any accrued and unpaid
Monthly Base Rent under the Leases with respect to such Eligible Vehicles (net
of amounts set forth in clauses (ii), (iii) and (iv)
above), and (vi) if
such date of determination is during the period from and including a
Determination Date to but excluding the next Program Distribution Date, any accrued
and unpaid Monthly Base Rent under the Leases with respect to such Eligible
Vehicles that have not been turned in to the Manufacturer for Auction or
otherwise sold, as of such date of determination.

“Series 2005-2 Lease Interest
Payment Deficit” means on any Distribution Date an amount equal to the
excess, if any, of (a) the aggregate amount of Interest Collections which
pursuant to Section 2.2 of this Series Supplement would have been allocated to the Series 2005-2 Accrued Interest Account
if all payments of Monthly Variable Rent required to have been made under the
Leases from and excluding the immediately preceding Distribution Date to and
including such Distribution Date were 

 

31

 

made in full over (b) the
aggregate amount of Interest Collections which pursuant to Section 2.2 of this Series Supplement have been allocated to the Series 2005-2 Accrued
Interest Account from and excluding the immediately preceding Distribution Date
to and including such Distribution Date.

“Series 2005-2 Lease Payment
Deficit” means either a Series 2005-2 Lease Interest Payment Deficit or a
Series 2005-2 Lease Principal Payment Deficit.

“Series 2005-2 Lease
Principal Payment Carryover Deficit” means (a) for the initial Distribution
Date, zero and (b) for any other Distribution Date, the excess, if any, of (x)
the Series 2005-2 Lease Principal Payment Deficit, if any, on the preceding
Distribution Date over (y) the amount deposited in the Series 2005-2
Distribution Account on such preceding Distribution Date on account of such
Series 2005-2 Lease Principal Payment Deficit.

“Series 2005-2 Lease
Principal Payment Deficit” means on any Distribution Date the sum of (a)
the Series 2005-2 Monthly Lease Principal Payment Deficit for such Distribution
Date and (b) the Series 2005-2 Lease Principal Payment Carryover Deficit for
such Distribution Date.

“Series 2005-2 Letter of
Credit” means an irrevocable letter of credit, if any, substantially in the
form of Exhibit D to this Series Supplement issued by a Series 2005-2
Eligible Letter of Credit Provider in favor of the Trustee for the benefit of
the Series 2005-2 Noteholders, each Series 2005-2 Interest Rate Hedge Provider
and the Surety Provider in form and substance satisfactory to the Surety
Provider.

“Series 2005-2 Letter of
Credit Amount” means, as of any date of determination, the lesser of (a)
the sum of (i) the aggregate amount available to be drawn on such date under
each Series 2005-2 Letter of Credit, as specified therein and (ii) if the
Series 2005-2 Cash Collateral Account has been established and funded pursuant
to Section 2.8 of this Series Supplement, the Series 2005-2 Available
Cash Collateral Account Amount on such date and (b) the outstanding principal
amount of the Series 2005-2 Demand Note on such date.

“Series 2005-2 Letter of
Credit Expiration Date” means, with respect to any Series 2005-2 Letter of
Credit, the expiration date set forth in such Series 2005-2 Letter of Credit,
as such date may be extended in accordance with the terms of such Series 2005-2
Letter of Credit.

“Series 2005-2 Letter of
Credit Liquidity Amount” means, as of any date of determination, the sum of
(a) the aggregate amount available to be drawn on such date under each Series
2005-2 Letter of Credit, as specified therein and (b) if the Series 2005-2 Cash
Collateral Account has been established and funded pursuant to Section 2.8
of this Series Supplement, the Series 2005-2 Available Cash Collateral Account
Amount on such date.

 

32

 

“Series 2005-2 Letter of
Credit Provider” means the issuer of a Series 2005-2 Letter of Credit.

“Series 2005-2 Letter of
Credit Termination Date” means the first to occur of (a) the date on which
the Series 2005-2 Notes are fully paid and the Surety Provider has been paid
all Surety Provider Fees and all other Surety Provider Reimbursement Amounts
then due; (b) the Series 2005-2 Termination Date; and (c) such earlier date
consented to by the Surety Provider and the Rating Agencies which consent by
the Surety Provider shall be in writing.

“Series 2005-2 Liquidity
Amount”  means, as of any
date of determination, the sum of (a) the amount available to be drawn under
the Series 2005-2 Letter of Credit on such date, (b) if the Series 2005-2 Cash
Collateral Account has been established and funded pursuant to Section 2.8
of this Series Supplement, the Series 2005-2 Available Cash Collateral Account
Amount on such date and (c) the Series 2005-2 Available Reserve Account Amount
on such date.

“Series 2005-2 Liquidity
Deficiency” means, as of any date of determination, the amount by which the
Series 2005-2 Liquidity Amount is less than the Series 2005-2 Required
Liquidity Amount as of such date.

“Series 2005-2 Maximum
Aggregate Kia/Hyundai/Suzuki/Volkswagen Vehicle Amount” means, as of any
day, an amount equal to 25% of the Adjusted Aggregate Asset Amount on such day.

“Series 2005-2 Maximum Amount”
means any of the Series 2005-2 Maximum Non-Eligible Manufacturer Amount, the
Series 2005-2 Maximum Non-Program Vehicle Amount, the Series 2005-2 Maximum
Restricted Vehicle Amount, the Series 2005-2 Maximum Mitsubishi Non-Program
Vehicle Amount, each Series 2005-2 Maximum Defaulted Manufacturer Vehicle
Amount, the Series 2005-2 Maximum Kia Amount, the Series 2005-2 Maximum Hyundai
Amount, the Series 2005-2 Maximum Suzuki Amount, the Series 2005-2 Maximum
Volkswagen Amount, the Series 2005-2 Maximum Mazda Program Vehicle Amount or
the Series 2005-2 Maximum Aggregate Kia/Hyundai/Suzuki/Volkswagen Vehicle
Amount.

“Series 2005-2 Maximum
Defaulted Manufacturer Vehicle Amount” means, as of any date of
determination, with respect to each Series 2005-2 Defaulted Manufacturer,
solely for so long as such Manufacturer is a Series 2005-2 Defaulted
Manufacturer, an amount equal to the product of (x) a fraction expressed as a
percentage, the numerator of which is the Series 2005-2 Defaulted Manufacturer
Vehicle Amount, on the day such Manufacturer became a Series 2005-2 Defaulted
Manufacturer and the denominator of which is the Adjusted Aggregate Asset
Amount as of such day on which such Manufacturer became a Series 2005-2
Defaulted Manufacturer and (y) the Adjusted Aggregate Asset Amount as of such
date of determination; provided that for the avoidance of doubt, there
will be no Series 2005-2 Maximum Defaulted Manufacturer

 

33

 

Vehicle Amount with respect to a
Manufacturer on any date on which such Manufacturer is not a Series 2005-2
Defaulted Manufacturer.

“Series 2005-2 Maximum
Hyundai Amount” means, as of any day, an amount equal to 10% of the
Adjusted Aggregate Asset Amount on such day.

“Series 2005-2 Maximum Kia
Amount” means, as of any day, an amount equal to 10% of the Adjusted
Aggregate Asset Amount on such day.

“Series 2005-2 Maximum Mazda
Program Vehicle Amount” means, as of any day, an amount equal to (a) if
Mazda is rated at least “BBB” by Standard & Poor’s and “Baa3” by Moody’s,
10% of the Adjusted Aggregate Asset Amount as of such day and (b) if Mazda is
not rated at least “BBB” by Standard & Poor’s and “Baa3” by Moody’s, 2% of
the Adjusted Aggregate Asset Amount as of such day.

“Series 2005-2 Maximum
Mitsubishi Non-Program Vehicle Amount” means, as of any day, an amount
equal to 20% of the Series 2005-2 Maximum Non-Program Vehicle Amount as of such
day.

“Series 2005-2 Maximum
Non-Eligible Manufacturer Amount” means, as of any day, an amount equal to
2% of the Adjusted Aggregate Asset Amount on such day.

“Series 2005-2 Maximum
Non-Program Vehicle Amount” means, as of any day, an amount equal to the
Series 2005-2 Maximum Non-Program Vehicle Percentage of the Adjusted Aggregate
Asset Amount on such day.

“Series 2005-2 Maximum
Non-Program Vehicle Percentage” means 30.0% or such
lesser percentage as may be agreed to in writing by ARG and the Surety Provider
(initially 15.0%) on or after the Series 2005-2 Closing Date, with prompt
written notice thereof delivered by ARG to the Trustee.

“Series
2005-2 Maximum Restricted Vehicle Amount” means, as of any day, with
respect to any Series 2005-2 Restricted Manufacturer, an amount equal to 33.33%
of the Series 2005-2 Maximum Non-Program Vehicle Amount as of such day.

“Series
2005-2 Maximum Suzuki Amount” means, as of any day, an amount equal to 5%
of the Adjusted Aggregate Asset Amount on such day.

“Series
2005-2 Maximum Volkswagen Amount” means, as of any day, an amount equal to
10% of the Adjusted Aggregate Asset Amount on such day.

“Series
2005-2 Mazda Program Vehicle Amount” means, as of any date of
determination, an amount equal to the sum, rounded to the nearest $100,000, of
the following amounts to the extent that such amounts are included in the
definition of “Aggregate Asset Amount” for such date:  (i) the Net Book Value of all Series 2005-2 

 

34

 

Program
Vehicles that are Eligible Vehicles as of such date that were manufactured by
Mazda and not turned in to Mazda pursuant to its Manufacturer Program, if any,
or delivered for Auction pursuant to its Manufacturer Program, if any, or not
otherwise sold or deemed to be sold under the related Leasing Company Related
Documents, (ii) all amounts receivable by a Leasing Company as of such date
(other than Excluded Payments) from Mazda under Manufacturer Programs with
respect to Eligible Vehicles (other than Exchanged Vehicles) (as of the
applicable disposition date) that were manufactured by Mazda and turned in to
Mazda pursuant to any such Manufacturer Program or delivered for Auction
pursuant to any Manufacturer Program and the aggregate of all Eligible
Receivables owned by a Leasing Company, financed under the related Leasing
Company Indenture and owed by Mazda under and in accordance with a Manufacturer
Program, (iii) with regard to Eligible Vehicles that were Series 2005-2 Program
Vehicles (as of the applicable disposition date) that were manufactured by
Mazda that have been delivered for Auction, all amounts receivable (other than
amounts specified in clause (ii) above) from any person or entity in
connection with the Auction of such Eligible Vehicles as of such date, (iv)
with regard to Eligible Vehicles that were Series 2005-2 Program Vehicles (as
of the applicable disposition date) that were manufactured by Mazda that have
been turned in to the Manufacturer, delivered for Auction or otherwise sold,
any Casualty Payments or Termination Payments with respect to such Eligible
Vehicles due and payable as of such date under the Leases, (v) with regard to
Eligible Vehicles that were Series 2005-2 Program Vehicles (as of the applicable
disposition date) that were manufactured by Mazda that have been turned in to
the Manufacturer, delivered for Auction or otherwise sold, any accrued and
unpaid Monthly Base Rent under the Leases with respect to such Eligible
Vehicles (net of amounts set forth in clauses (ii), (iii) and (iv)
above) and (vi) if
such date of determination is during the period from and including a
Determination Date to but excluding the next Distribution Date, any accrued and
unpaid Monthly Base Rent under the Leases with respect to such Eligible
Vehicles that have not been turned in to the Manufacturer for Auction or
otherwise sold, as of such date of determination.

“Series
2005-2 Mitsubishi Non-Program Vehicle Amount” means, as of any date of
determination, an amount equal to the sum, rounded to the nearest $100,000, of
the following amounts to the extent that such amounts are included in the
definition of “Aggregate Asset Amount” for such date:  (i) the Net Book Value of all Series 2005-2
Non-Program Vehicles that are Eligible Vehicles as of such date that were
manufactured by Mitsubishi and not turned in to Mitsubishi pursuant to its
Manufacturer Program, if any, or delivered for Auction pursuant to its
Manufacturer Program, if any, or not otherwise sold or deemed to be sold under
the related Leasing Company Related Documents, (ii) with regard to Eligible
Vehicles that were Series 2005-2 Non-Program Vehicles (as of the applicable
disposition date) that were manufactured by Mitsubishi that have been turned in
to the Manufacturer, delivered 

 

35

 

for
Auction or otherwise sold, any Casualty Payments or Termination Payments with
respect to such Eligible Vehicles due and payable as of such date under the
Leases, (iii) with regard to Eligible Vehicles that were Series 2005-2
Non-Program Vehicles (as of the applicable disposition date) that were
manufactured by Mitsubishi that have been turned in to the Manufacturer,
delivered for Auction or otherwise sold, any accrued and unpaid Monthly Base
Rent under the Leases with respect to such Eligible Vehicles (net of amounts
set forth in clause (ii) above) and (iv) if such date of determination is during the
period from and including a Determination Date to but excluding the next
Distribution Date, any accrued and unpaid Monthly Base Rent under the Leases
with respect to such Eligible Vehicles that have not been turned in to the
Manufacturer for Auction or otherwise sold, as of such date of determination.

“Series 2005-2 Monthly Lease
Principal Payment Deficit” means on any Distribution Date an amount equal
to the excess, if any, of (a) the aggregate amount of Principal Collections
which pursuant to Section 2.2 of this Series Supplement would have been allocated to the Series 2005-2 Collection Account if all
payments required to have been made under the Leases from and excluding the
preceding Distribution Date to and including such Distribution Date were made
in full over (b)  the aggregate amount of
Principal Collections which pursuant to Section 2.2 of this Series
Supplement have been allocated to the Series 2005-2 Collection Account (without
giving effect to any amounts deposited into the Series 2005-2 Accrued Interest
Account pursuant to the proviso to Section 2.2(c)(ii) of this Series
Supplement) from and excluding the preceding Distribution Date to and including
such Distribution Date.

“Series 2005-2 Non-Eligible
Manufacturer Amount” means, as of any date of determination, an amount
equal to the sum, rounded to the nearest $100,000, of the following amounts to
the extent that such amounts are included in the definition of “Aggregate Asset
Amount” for such date:  (i) the Net Book
Value of all Vehicles that are Eligible Vehicles as of such date that were
manufactured by Manufacturers other than Series 2005-2 Eligible Program
Manufacturers or Series 2005-2 Eligible Non-Program Manufacturers and not
turned in to the Manufacturer thereof pursuant to its Manufacturer Program, if
any, not delivered for Auction pursuant to its Manufacturer Program, if any, or
not otherwise sold or deemed to be sold under the related Leasing Company
Related Documents, (ii) with regard to Eligible Vehicles (as of the applicable
disposition date) that were manufactured by Manufacturers other than Series
2005-2 Eligible Program Manufacturers or Series 2005-2 Eligible Non-Program
Manufacturers that have been turned in to the Manufacturer, delivered for
Auction or otherwise sold, any Casualty Payments or Termination Payments with
respect to such Eligible Vehicles due and payable on such date under the
Leases, (iii) with regard to Eligible Vehicles (as of the applicable
disposition date) that were manufactured by Manufacturers other than Series
2005-2 Eligible Program Manufacturers or Series 2005-2 Eligible Non-Program
Manufacturers that have been turned in to the Manufacturer, delivered for
Auction or otherwise sold, any accrued and unpaid Monthly Base Rent under the
Leases with respect to such Eligible Vehicles (net of amounts set forth in clause
(ii) above) and
(iv) if such date of determination is during the period from and including a
Determination Date to but excluding the next Distribution Date, any accrued and
unpaid Monthly Base Rent under the Leases with respect to such Eligible
Vehicles that have not been turned in to the Manufacturer for Auction or
otherwise sold, as of such date of determination.

 

36

 

“Series 2005-2 Non-Program
Vehicle” means a Vehicle that is not subject to a Series 2005-2 Eligible
Manufacturer Program, including, without limitation Vehicles subject to a
Manufacturer Program that fails to meet the definition of Series 2005-2
Eligible Manufacturer Program as a result of the occurrence and continuation of
a Manufacturer Event of Default with respect to the related Manufacturer.

“Series 2005-2 Non-Program
Vehicle Amount” means, as of any date of determination, an amount equal to
the sum, rounded to the nearest $100,000, of the following amounts to the
extent that such amounts are included in the definition of “Aggregate Asset
Amount” for such date:  (i) the Net Book
Value of all Series 2005-2 Non-Program Vehicles that are Eligible Vehicles as
of such date and not turned in to the Manufacturer thereof pursuant to its
Manufacturer Program, if any, not delivered for Auction pursuant to its
Manufacturer Program, if any, or not otherwise sold or deemed to be sold under
the related Leasing Company Related Documents, (ii) with regard to Eligible
Vehicles that were Series 2005-2 Non-Program Vehicles (as of the applicable disposition
date) that have been turned in to the Manufacturer, delivered for Auction or
otherwise sold, any Casualty Payments or Termination Payments with respect to
such Eligible Vehicles due and payable as of such date under the Leases, (iii)
with regard to Eligible Vehicles that were Series 2005-2 Non-Program Vehicles
(as of the applicable disposition date) that have been turned in to the
Manufacturer, delivered for Auction or otherwise sold, any accrued and unpaid
Monthly Base Rent under the Leases with respect to such Eligible Vehicles (net
of amounts set forth in clause (ii) above) and (iv) if such date of determination is during the
period from and including a Determination Date to but excluding the next
Distribution Date, any accrued and unpaid Monthly Base Rent under the Leases
with respect to such Eligible Vehicles that have not been turned in to the
Manufacturer for Auction or otherwise sold, as of such date of determination.

“Series 2005-2 Non-Program
Vehicle Percentage” means, as of any date of determination, the sum of (i)
the percentage equivalent of a fraction, the numerator of which is the Series
2005-2 Non-Program Vehicle Amount as of such date and the denominator of which
is equal to the Aggregate Asset Amount as of such date and (ii) the Specified
BBB-/Baa3 Vehicle Percentage Excess as of such date; provided that upon
the occurrence of a Specified Manufacturer Event of Default with respect to any
Manufacturer, such Specified Manufacturer Event of Default will be deemed not
to have occurred for purposes of calculating the Series 2005-2 Non-Program
Vehicle Percentage for a period of thirty (30) days following the occurrence of
such Specified Manufacturer Event of Default.

“Series 2005-2 Noteholder”
means the person in whose name a Class A-1 Note, Class A-2 Note, Class A-3
Note, Class A-4 Note or Class A-5 Note, as the context may require, is
registered in the Note Register.

“Series 2005-2 Notes”
means, collectively, the Class A-1 Notes, the Class A-2 Notes, the Class A-3
Notes, the Class A-4 Notes and the Class A-5 Notes.

 

37

 

“Series 2005-2 Outstanding
Principal Amount” means the sum of the Class A-1 Outstanding Principal
Amount, the Class A-2 Outstanding Principal Amount, the Class A-3 Outstanding
Principal Amount, the Class A-4 Outstanding Principal Amount and the Class A-5
Outstanding Principal Amount.

“Series 2005-2
Overcollateralization Amount” means, as of any date, (A) on which no
Aggregate Asset Amount Deficiency exists, the Series 2005-2 Required
Overcollateralization Amount as of such date or (B) on which an Aggregate Asset
Amount Deficiency exists, the excess, if any, of the Series 2005-2 Aggregate
Asset Amount over the Series 2005-2 Adjusted Invested Amount as of such date.

“Series 2005-2 Past Due Rent
Payment” has the meaning specified in Section 2.2(d) of this Series Supplement.

“Series 2005-2 Percentage”
means, as of any date of determination, the percentage equivalent of a
fraction, the numerator of which is the Series 2005-2 Invested Amount as of
such date and the denominator of which is the sum of the Invested Amounts for
all Series of Notes as of such date.

“Series 2005-2 Periodic
Interest” means, with respect to the Series 2005-2 Notes of any class, the
Class A-1 Periodic Interest, the Class A-2 Periodic Interest, the Class A-3
Periodic Interest, the Class A-4 Periodic Interest or the Class A-5 Periodic
Interest, as applicable.

“Series 2005-2 Principal
Allocation” has the meaning specified in Section 2.2(a)(ii) of this
Series Supplement.

“Series 2005-2 Program
Vehicle” means a Vehicle subject to a Series 2005-2 Eligible Manufacturer
Program.

“Series 2005-2 Program
Vehicle Amount” means, as of any date of determination, an amount equal to
the sum, rounded to the nearest $100,000, of the following amounts to the
extent that such amount are included in the definition of “Aggregate Asset
Amount” for such date:  (i) the Net Book
Value of all Series 2005-2 Program Vehicles that are Eligible Vehicles as of
such date and not turned in to the Manufacturer thereof pursuant to its
Manufacturer Program, if any, not delivered for Auction pursuant to its
Manufacturer Program, if any, or not otherwise sold or deemed to be sold under
the related Leasing Company Related Documents, (ii) all amounts receivable by a
Leasing Company as of such date (other than Excluded Payments) from
Manufacturers under Manufacturer Programs with respect to Eligible Vehicles
that were Series 2005-2 Program Vehicles (other than Exchanged Vehicles) (as of
the applicable Disposition Date) and turned in to such Manufacturers pursuant
to any such Manufacturer Program or delivered for Auction pursuant to any
Manufacturer Program and the aggregate of all Eligible Receivables owned by a
Leasing Company, financed under the related Leasing Company Indenture and owed
by Series 2005-2 Eligible Program Manufacturers under and in accordance with a
Manufacturer Program, (iii) with regard to 

 

38

 

Eligible Vehicles that were
Series 2005-2 Program Vehicles (as of the applicable Disposition Date) that
have been turned in to the Manufacturer, delivered for Auction or otherwise
sold, all amounts receivable (other than amounts specified in clause (ii)
above) from any person or entity in connection with the Auction of such
Eligible Vehicles as of such date, (iv) with regard to Eligible Vehicles that
were Series 2005-2 Program Vehicles (as of the applicable Disposition Date)
that have been turned in to the Manufacturer, delivered for Auction or otherwise
sold, any Casualty Payments or Termination Payments with respect to such
Eligible Vehicles due and payable as of such date under the Leases, (v) with
regard to Eligible Vehicles that were Series 2005-2 Program Vehicles (as of the
applicable Disposition Date) that have been turned in to the Manufacturer,
delivered for Auction or otherwise sold, any accrued and unpaid Monthly Base
Rent under the Leases with respect to such Eligible Vehicles (net of amounts
set forth in clauses (ii), (iii) and (iv) above) and (vi) if such date of determination
is during the period from and including a Determination Date to but excluding
the next Distribution Date, any accrued and unpaid Monthly Base Rent under the
Leases with respect to such Eligible Vehicles that have not been turned in to
the Manufacturer for Auction or otherwise sold, as of such date of
determination.

“Series 2005-2 Program
Vehicle Percentage” means, as of any date of determination, the result of
(i) the percentage equivalent of a fraction, the numerator of which is the
excess, if any, of the Series 2005-2 Program Vehicle Amount over the GM Freeze
Vehicle Amount as of such date and the denominator of which is equal to the Aggregate Asset Amount as of such date minus (ii) the Specified BBB-/Baa3
Vehicle Percentage Excess as of such date; provided that upon the
occurrence of a Specified Manufacturer Event of Default with respect to any
Manufacturer, such Specified Manufacturer Event of Default will be deemed not
to have occurred for purposes of calculating the Series 2005-2 Program Vehicle
Percentage for a period of thirty (30) days following the occurrence of such
Specified Manufacturer Event of Default.

“Series 2005-2 Rapid
Amortization Period” means the period beginning at the close of business on
the Business Day immediately preceding the day on which an Amortization Event
is deemed to have occurred with respect to the Series 2005-2 Notes and ending
upon the earliest to occur of (i) the date on which the Series 2005-2 Notes are
redeemed in full and the Surety Provider has been paid all Surety Provider Fees
and all Surety Provider Reimbursement Amounts then due and each Series 2005-2
Interest Rate Hedge has been terminated and there are no amounts due
and owing thereunder and (ii) the termination of the Indenture.

“Series 2005-2 Rating Agency
Confirmation and Consent Condition” means, with respect to the Series
2005-2 Notes of each Class and any action, that (i) each Rating Agency shall
have notified ARG, the Surety Provider and the Trustee in writing that such action
will not result in a reduction or withdrawal of the ratings (in respect of each
Class of Series 2005-2 Notes, both with and without regard to the presence of
the Surety Bond in effect immediately before the taking of such action) of the
Series 2005-2 

 

39

 

Notes of each Class and (ii) the
Surety Provider shall have consented in writing
to such action.

“Series 2005-2 Rating Agency
Confirmation Condition” means, with respect to the Series 2005-2 Notes of each
Class and any action, including the issuance of an additional Series of Notes,
that each Rating Agency shall have notified ARG, the Surety Provider and the
Trustee in writing that such action will not result in a reduction or
withdrawal of the ratings (in respect of each Class of Series 2005-2 Notes,
both with and without regard to the presence of the Surety Bond in effect
immediately before the taking of such action) of the Series 2005-2 Notes of
each Class.

“Series 2005-2 Reimbursement
Agreement” means any and each agreement providing for the reimbursement of
a Series 2005-2 Letter of Credit Provider for draws under its Series 2005-2
Letter of Credit.

“Series 2005-2 Repurchase
Amount” has the meaning specified in Section 8.1 of this Series
Supplement.

“Series 2005-2 Required Aggregate Asset Amount”
means, as of any date of determination, the sum of (a) the Series 2005-2
Adjusted Invested Amount and (b) the Series 2005-2 Required
Overcollateralization Amount, in each case, as of such date.

“Series 2005-2 Required Enhancement Amount”  means, as of any date of
determination, the sum of (i) the product of (x) the Series 2005-2 Required
Enhancement Percentage as of such date and (y) the Series 2005-2 Adjusted
Invested Amount as of such date plus (ii) the Series 2005-2 Required
Enhancement Incremental Amount as of such date; provided, however,
that, as of any date of determination after the occurrence of a Series 2005-2
ARG Liquidation Event, the Series 2005-2 Required Enhancement Amount shall
equal the lesser of (x) the Series 2005-2 Adjusted Invested Amount as of such
date and (y) the sum of (1) the product of the Series 2005-2 Required
Enhancement Percentage as of such date of determination and the Series 2005-2
Adjusted Invested Amount as of the date of the occurrence of such Series 2005-2
ARG Liquidation Event plus (2) the Series 2005-2 Required Enhancement
Incremental Amount as of such date of determination.

“Series 2005-2 Required Enhancement Incremental
Amount” means as of any date, the product of (A) the Series 2005-2
Aggregate Asset Percentage as of the immediately preceding Business Day and (B)
the sum (without double counting) of (1) the excess, if any, of the Series
2005-2 Non-Program Vehicle Amount (excluding from the calculation thereof, to
the extent that a Manufacturer Event of Default has occurred with respect to
any Series 2005-2 Eligible Program Manufacturer, the Net Book Value of the
Vehicles (other than Series 2005-2 Non-Program Vehicles manufactured by any
such Series 2005-2 Eligible Program Manufacturer as of the date of the
occurrence of such Manufacturer Event of Default) manufactured by each such
Series 2005-2 Eligible Program Manufacturer for which a Manufacturer Event of
Default has occurred and 

 

40

 

acquired prior to such Manufacturer Event of Default
having been cured, and any amounts related to such Vehicles included in the
definition of Series 2005-2 Non-Program Vehicle Amount) over the Series 2005-2
Maximum Non-Program Vehicle Amount as of such immediately preceding Business
Day, (2) the excess, if any, of the Series 2005-2 Non-Eligible Manufacturer
Amount over the Series 2005-2 Maximum Non-Eligible Manufacturer Amount as of
such immediately preceding Business Day, (3) the excess, if any, of the Series
2005-2 Mazda Program Vehicle Amount over the Series 2005-2 Maximum Mazda
Program Vehicle Amount as of such immediately preceding Business Day, (4) the
excess, if any, of the Series 2005-2 
Restricted Vehicle Amount over the Series 2005-2 Maximum Restricted
Vehicle Amount as of such immediately preceding Business Day, (5) the excess,
if any, of the Series 2005-2 Defaulted Manufacturer
Vehicle Amount with respect to each Series 2005-2 Defaulted Manufacturer over
the Series 2005-2 Maximum Defaulted Manufacturer
Vehicle Amount with respect to such Series 2005-2 Defaulted Manufacturer as of
such immediately preceding Business Day, (6) the excess, if any, of the Series
2005-2 Mitsubishi Non-Program Vehicle Amount over the Series 2005-2 Maximum Mitsubishi
Non-Program Vehicle Amount as of such immediately preceding Business Day, (7)
the excess, if any, of the Series 2005-2 Kia Amount over the Series 2005-2
Maximum Kia Amount as of such immediately preceding Business Day, (8) the
excess, if any, of the Series 2005-2 Suzuki Amount over the Series 2005-2
Maximum Suzuki Amount as of such immediately preceding Business Day, (9) the
excess, if any, of the Series 2005-2 Hyundai Amount over the Series 2005-2
Maximum Hyundai Amount as of such immediately preceding Business Day, (10) the
excess, if any, of the Series 2005-2 Volkswagen Amount over the Series 2005-2
Maximum Volkswagen Amount as of such immediately preceding Business Day and
(11) the excess, if any, of the Series 2005-2 Aggregate Kia/Hyundai/Suzuki/Volkswagen
Amount as of such immediately preceding Business Day, over the Series 2005-2
Maximum Aggregate Kia/Hyundai/Suzuki/Volkswagen Vehicle Amount as of such
immediately preceding Business Day.

“Series 2005-2 Required Enhancement Percentage”  means, as of any date of
determination, a percentage calculated with respect to the preceding day equal
to the sum of (i) the product of (A) the Series 2005-2 Required Program Vehicle
Enhancement Percentage as of such preceding day and (B) the Series 2005-2 Program
Vehicle Percentage as of such preceding day, (ii) the product of (A) the Series
2005-2 Required Non-Program Enhancement Percentage as of such preceding day and
(B) the Series 2005-2 Non-Program Vehicle Percentage as of such preceding day
and (iii) the product of (A) the Series 2005-2 Required GM Freeze Vehicle
Enhancement Percentage and (B) the GM Freeze Vehicle Percentage as of such
preceding day.

“Series 2005-2 Required GM Freeze Vehicle
Enhancement Percentage”  means,
as of any date of determination, the result of (i) the sum of (A) the product
of (1) 8.50% and (2) the Class A-1
Invested Amount on such date, (B) the product of (1) 8.75% and (2) the Class A-2 Invested Amount on
such date, (C) the product of (1) 9.00%
and (2) the Class A-3 Invested Amount on such date, (D) the product of (1) 8.75% and (2) the Class A-4 Invested Amount on
such date and (E) the product of (1) 9.00%
and (2) the 

 

41

 

Class A-5 Invested Amount on such date divided by (ii)
the Series 2005-2 Invested Amount on such date. On or after the Series 2005-2
Closing Date, the percentage set forth in subclause (1) of each of clauses (A),
(B), (C), (D) and (E) in the preceding sentence may be lowered subject to
satisfaction of the Series 2005-2 Rating Agency Confirmation and Consent
Condition, with prompt written notice thereof delivered by ARG to the Trustee,
but in no event shall the percentage set forth in subclause (1) of each of
clauses (A), (B), (C), (D) and (E) be lowered below 7.0%, 7.0%, 7.0%, 7.0% or 7.0%,
respectively.

“Series 2005-2 Required
Interest Rate Hedge Collateral Account Amount” means, with respect to any
date of determination the
sum of the Series 2005-2 Required Interest Rate Hedge Collateral Amounts for
all Series 2005-2 Initial Interest Rate Hedge Provider Hedges in effect on such
date of determination.

“Series 2005-2 Required
Interest Rate Hedge Collateral Amount” means with respect to each Series
2005-2 Initial Interest Rate Hedge Provider Hedge, the amounts specified in
such Series 2005-2 Initial Interest Rate Hedge Provider Hedge as the “Required
Interest Rate Hedge Collateral Amount”.

“Series 2005-2 Required Liquidity Amount”
means, as of any date of determination, an amount equal to the result of (i)
the result of (x) the sum of (A) the product of (1) 3.75% and (2) the Class A-1
Invested Amount on such date, (B) the product of (1) 4.00% and (2) the Class
A-2 Invested Amount on such date, (C) the product of (1) 4.00% and (2) the
Class A-3 Invested Amount on such date, (D) the product of (1) 3.75% and (2)
the Class A-4 Invested Amount on such date, and (E) the product of (1) 4.00%
and (2) the Class A-5 Invested Amount on such date divided by (y) the Series
2005-2 Invested Amount on such date multiplied by (ii) the Series 2005-2
Adjusted Invested Amount on such date.

“Series 2005-2 Required Non-Program Enhancement
Percentage”  means, as of
any date of determination, the sum of (i) the Series 2005-2 Weighted Average
Required Non-Program Vehicle Enhancement Percentage as of such date and (ii) an
amount (not less than zero) equal to 100% minus the lesser of (x) the lowest
Measurement Month Average of any full Measurement Month within the preceding
twelve calendar months (or such fewer number of calendar months as have elapsed
since the Series 2005-2 Closing Date) and (y) the lowest Fair Market Value
Average as of any Determination Date within the preceding twelve calendar
months (or such fewer number of calendar months as have elapsed since the
Series 2005-2 Closing Date).

“Series 2005-2 Required
Overcollateralization Amount” means, as of any date of determination, the
excess, if any, of (a) the Series 2005-2 Required Enhancement Amount over (b)
the sum of (i) the Series 2005-2 Available Reserve Account Amount as of such
date and (ii) the Series 2005-2 Letter of Credit Amount as of such date.

 

42

 

“Series 2005-2 Required Program Vehicle Enhancement
Percentage”  means, as of
any date of determination, the result of (i) the sum of (A) the product of (1)
17.50% and (2) the Class A-1
Invested Amount on such date, (B) the product of (1) 17.75% and (2) the Class A-2 Invested Amount on
such date, (C) the product of (1) 17.75%
and (2) the Class A-3 Invested Amount on such date, (D) the product of (1)
17.50% and (2) the Class A-4
Invested Amount on such date and (E) the product of (1) 17.75% and (2) the Class A-5 Invested Amount on
such date divided by (ii) the Series 2005-2 Invested Amount on such date.  On
or after the Series 2005-2 Closing Date, the percentage set forth in subclause
(1) of each of clauses (A), (B), (C), (D) and (E) in the preceding sentence may
be lowered subject to satisfaction of the Series 2005-2 Rating Agency
Confirmation and Consent Condition, with prompt written notice thereof
delivered by ARG to the Trustee, but in no event shall the percentage set forth
in subclause (1) of each of clauses (A), (B), (C), (D) and (E) be lowered below
14.0%, 14.0%, 14.0%, 14.0% or 14.0%, 
respectively.

“Series 2005-2 Required
Reserve Account Amount” means, with respect to any date of determination,
an amount equal to the greater of (a) the excess, if any, of the Series 2005-2
Required Liquidity Amount on such date over the Series 2005-2 Liquidity Amount
(excluding therefrom the Series 2005-2 Available Reserve Account Amount) on
such date and (b) the excess, if any, of the Series 2005-2 Required Enhancement
Amount over the Series 2005-2 Enhancement Amount (excluding therefrom the
Series 2005-2 Available Reserve Account Amount) on such date.

“Series 2005-2 Reserve
Account” has the meaning specified in Section 2.7 (a) of this Series
Supplement.

“Series 2005-2 Reserve
Account Collateral” has the meaning specified in Section 2.7(d) of
this Series Supplement.

“Series 2005-2 Reserve
Account Surplus” means, with respect to any date of determination, the
excess, if any, of the Series 2005-2 Available Reserve Account Amount over the
Series 2005-2 Required Reserve Account Amount on such date.

“Series 2005-2 Restricted Manufacturer” means
any Series 2005-2 Eligible Non-Program Manufacturer (other than Mitsubishi)
that is not a Series 2005-2 Eligible Program Manufacturer; provided, however,
that any Manufacturer, that ceases to be a Series 2005-2 Eligible Program
Manufacturer as a result of the occurrence of a Manufacturer Event of Default
with respect to such Manufacturer, shall not constitute a Series 2005-2
Restricted Manufacturer.

“Series 2005-2 Restricted Vehicle Amount”
means, as of any date of determination, with respect to each Series 2005-2
Restricted Manufacturer, an amount equal to the sum, rounded to the nearest
$100,000, of the following amounts to the extent that such amounts are included
in the definition of “Aggregate Asset Amount” for such date:  (i) the Net Book Value of all Series 2005-2
Non-Program Vehicles that are Eligible 

 

43

 

Vehicles as of such date and not turned in to such
Series 2005-2 Restricted Manufacturer thereof pursuant to its Manufacturer
Program, if any, not delivered for Auction pursuant to its Manufacturer
Program, if any, or not otherwise sold or deemed to be sold under the related
Leasing Company Related Documents, (ii) with regard to Eligible Vehicles that
were Series 2005-2 Non-Program Vehicles (as of the applicable disposition date)
that have been turned in to such Series 2005-2 Restricted Manufacturer,
delivered for Auction or otherwise sold, any Casualty Payments or Termination
Payments with respect to such Eligible Vehicles due and payable as of such date
under the Leases, (iii) with regard to Eligible Vehicles that were Series
2005-2 Non-Program Vehicles (as of the applicable disposition date) that have
been turned in to such Series 2005-2 Restricted Manufacturer, delivered for
Auction or otherwise sold, any accrued and unpaid Monthly Base Rent under the
Leases with respect to such Eligible Vehicles (net of amounts set forth in clause
(ii) above) and (iv) if such date of determination is during the period
from and including a Determination Date to but excluding the next Distribution
Date, any accrued and unpaid Monthly Base Rent under the Leases with respect to
such Eligible Vehicles that have not been turned in to such Series 2005-2
Restricted Manufacturer for Auction or otherwise sold, as of such date of
determination.

“Series 2005-2 Revolving
Period” means the period from and including the Series 2005-2 Closing Date
to the earlier of (i) the commencement of the Series 2005-2 Controlled
Amortization Period and (ii) the commencement of any Series 2005-2 Rapid
Amortization Period; provided
that if the Class A-1 Notes and the Class A-2 Notes are paid in full on or
prior to the Class A-1/A-2 Expected Final Distribution Date, then the Series
2005-2 Revolving Period shall also include the period from and including the
Determination Date immediately preceding the Distribution Date on which the
Class A-1 Notes and the Class A-2 Notes are paid in full to the earlier of (i)
the commencement of the Class A-3 Controlled Amortization Period and (ii) the
commencement of the Series 2005-2 Rapid Amortization Period; provided  further
that if the Class A-3 Notes are paid in full on or prior to the Class A-3
Expected Final Distribution Date, then the Series 2005-2 Revolving Period shall
also include the period from and including the Determination Date immediately
preceding the Distribution Date on which the Class A-3 Notes are paid in full
to the earlier of (i) the commencement of the Class A-4/A-5 Controlled
Amortization Period and (ii) the commencement of the Series 2005-2 Rapid
Amortization Period.

“Series 2005-2 Suzuki Amount”
means, as of any date of determination, an amount equal to the sum, rounded to
the nearest $100,000, of the following amounts to the extent that such amounts
are included in the definition of “Aggregate Asset Amount” for such date:  (i) the Net Book Value of all Series 2005-2
Program Vehicles and Series 2005-2 Non-Program Vehicles, in each case that are
Eligible Vehicles as of such date that were manufactured by Suzuki and not turned
in to Suzuki pursuant to its Manufacturer Program, if any, not delivered for
Auction pursuant to its Manufacturer Program if any, or not otherwise sold or
deemed to be sold under the related Leasing Company Related Documents, (ii) all
amounts receivable by a Leasing Company as of such date (other than Excluded
Payments) from Suzuki under Manufacturer Programs with respect to Eligible 

 

44

 

Vehicles (other than Exchanged
Vehicles) (as of the applicable disposition date) that were manufactured by
Suzuki and turned in to Suzuki pursuant to any such Manufacturer Program or
delivered for Auction pursuant to any Manufacturer Program and the aggregate of
all Eligible Receivables owned by a Leasing Company, financed under the related
Leasing Company Indenture and owed by Suzuki under and accordance with a
Manufacturer Program, (iii) with regard to Eligible Vehicles that were Series
2005-2 Program Vehicles (as of the applicable disposition date) that were
manufactured by Suzuki that have been delivered for Auction, all amounts
receivable (other than amounts specified in clause (ii) above) from any
person or entity in connection with the Auction of such Eligible Vehicles as of
such date, (iv) with regard to Eligible Vehicles that were Series 2005-2
Program Vehicles or Series 2005-2 Non-Program Vehicles (as of the applicable
disposition date), in each case that were manufactured by Suzuki that have been
turned in to the Manufacturer, delivered for Auction or otherwise sold, any
Casualty Payments or Termination Payments with respect to such Eligible
Vehicles due and payable as of such date under the Leases, (v) with regard to
Eligible Vehicles that were Series 2005-2 Program Vehicles or Series 2005-2
Non-Program Vehicles (as of the applicable disposition date), in each case that
were manufactured by Suzuki that have been turned in to the Manufacturer,
delivered for Auction or otherwise sold, any accrued and unpaid Monthly Base
Rent under the Leases with respect to such Eligible Vehicles (net of amounts
set forth in clauses (ii), (iii) and (iv) above), and (vi) if such date of determination
is during the period from and including a Determination Date to but excluding
the next Program Distribution Date, any accrued and unpaid Monthly Base Rent
under the Leases with respect to such Eligible Vehicles that have not been
turned in to the Manufacturer for Auction or otherwise sold, as of such date of
determination.

“Series 2005-2 Termination
Date” means the latest occurring Final Distribution Date.

“Series 2005-2 Volkswagen
Amount” means, as of any date of determination, an amount equal to the sum,
rounded to the nearest $100,000, of the following amounts to the extent that
such amounts are included in the definition of “Aggregate Asset Amount” for
such date:  (i) the Net Book Value of all
Series 2005-2 Program Vehicles and Series 2005-2 Non-Program Vehicles, in each
case that are Eligible Vehicles as of such date that were manufactured by
Volkswagen and not turned in to Volkswagen pursuant to its Manufacturer
Program, if any, not delivered for Auction pursuant to its Manufacturer Program
if any, or not otherwise sold or deemed to be sold under the related Leasing
Company Related Documents, (ii) all amounts receivable by a Leasing Company as
of such date (other than Excluded Payments) from Volkswagen under Manufacturer
Programs with respect to Eligible Vehicles (other than Exchanged Vehicles) (as
of the applicable disposition date) that were manufactured by Volkswagen and
turned in to Volkswagen pursuant to any such Manufacturer Program or delivered
for Auction pursuant to any Manufacturer Program and the aggregate of all
Eligible Receivables owned by a Leasing Company, financed under the related
Leasing Company Indenture and owed by Volkswagen under and accordance with a Manufacturer
Program, (iii) with regard to Eligible Vehicles that were Series 2005-2 Program
Vehicles (as of the 

 

45

 

applicable disposition date)
that were manufactured by Volkswagen that have been delivered for Auction, all
amounts receivable (other than amounts specified in clause (ii) above)
from any person or entity in connection with the Auction of such Eligible
Vehicles as of such date, (iv) with regard to Eligible Vehicles that were
Series 2005-2 Program Vehicles or Series 2005-2 Non-Program Vehicles (as of the
applicable disposition date), in each case that were manufactured by Volkswagen
that have been turned in to the Manufacturer, delivered for Auction or
otherwise sold, any Casualty Payments or Termination Payments with respect to
such Eligible Vehicles due and payable as of such date under the Leases, (v)
with regard to Eligible Vehicles that were Series 2005-2 Program Vehicles or
Series 2005-2 Non-Program Vehicles (as of the applicable disposition date), in
each case that were manufactured by Volkswagen that have been turned in to the
Manufacturer, delivered for Auction or otherwise sold, any accrued and unpaid
Monthly Base Rent under the Leases with respect to such Eligible Vehicles (net
of amounts set forth in clauses (ii), (iii) and (iv)
above), and (vi) if
such date of determination is during the period from and including a
Determination Date to but excluding the next Program Distribution Date, any
accrued and unpaid Monthly Base Rent under the Leases with respect to such
Eligible Vehicles that have not been turned in to the Manufacturer for Auction
or otherwise sold, as of such date of determination.

“Series 2005-2 Weighted Average Required
Non-Program Vehicle Enhancement Percentage” means, as of any date of
determination, the result of (i) the sum of (A) the product of (1) 27.75% and (2) the Class A-1 Invested Amount on
such date, (B) the product of (1) 28.00%
and (2) the Class A-2 Invested Amount on such date, (C) the product of (1)
28.00% and (2) the Class A-3
Invested Amount on such date, (C) the product of (1) 27.75% and (2) the Class A-4 Invested Amount on
such date and (D) the product of (1) 28.00%
and (2) the Class A-5 Invested Amount on such date divided by (ii) the Series
2005-2 Invested Amount on such date.  On
or after the Series 2005-2 Closing Date, the percentage set forth in subclause
(1) of each of clauses (A), (B), (C), (D) and (E) in the preceding sentence may
be lowered subject to satisfaction of the Series 2005-2 Rating Agency Confirmation
and Consent Condition, with prompt written notice thereof delivered by ARG to
the Trustee, but in no event shall the percentage set forth in subclause (1) of
each of clauses (A), (B), (C), (D) and (E) be lowered below 20.0%, 20.0%,
20.0%, 20.0% or 20.0%,  respectively.

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

“Servicer” means
Vanguard.

“Shadow Rating” means the rating of the Series
2005-2 Notes by Standard & Poor’s or Moody’s, as applicable, without giving
effect to the Surety Bond.

“Specified BBB-/Baa3 Amount”
means, as of any date of determination, an amount equal to the sum, rounded to
the nearest $100,000, of the following amounts to the extent that such amounts
are included in the definition of “Aggregate Asset Amount” for such date:  (i) the Net Book Value of all Series 2005-2
Program Vehicles that are 

 

46

 

Eligible Vehicles as of such
date that were manufactured by a Specified BBB-/Baa3 Manufacturer as of such
date and not turned in to such Specified BBB-/Baa3 Manufacturer as of such date
pursuant to its Manufacturer Program, if any, not delivered for Auction
pursuant to its Manufacturer Program, if any, or not otherwise sold or deemed
to be sold under the related Leasing Company Related Documents, (ii) all
amounts receivable by a Leasing Company as of such date (other than Excluded
Payments) from a Specified BBB-/Baa3 Manufacturer as of such date under
Manufacturer Programs with respect to Eligible Vehicles (other than Exchanged
Vehicles) (as of the applicable disposition date) that were manufactured by
such Specified BBB-/Baa3 Manufacturer as of such date and turned in to such
Specified BBB-/Baa3 Manufacturer pursuant to any such Manufacturer Program or
delivered for Auction pursuant to any Manufacturer Program and the aggregate of
all Eligible Receivables owned by a Leasing Company, financed under the related
Leasing Company Indenture and owed by such Specified BBB-/Baa3 Manufacturer
under and accordance with a Manufacturer Program, (iii) with regard to Eligible
Vehicles that were Series 2005-2 Program Vehicles (as of the applicable
disposition date) that were manufactured by a Specified BBB-/Baa3 Manufacturer
as of such date that have been delivered for Auction, all amounts receivable
(other than amounts specified in clause (ii) above) from any person or
entity in connection with the Auction of such Eligible Vehicles as of such
date, (iv) with regard to Eligible Vehicles that were Series 2005-2 Program
Vehicles (as of the applicable disposition date) that were manufactured by a
Specified BBB-/Baa3 Manufacturer as of such date that have been turned in to
the Manufacturer, delivered for Auction or otherwise sold, any Casualty
Payments or Termination Payments with respect to such Eligible Vehicles due and
payable as of such date under the Leases, (v) with regard to Eligible Vehicles
that were Series 2005-2 Program Vehicles (as of the applicable disposition
date) manufactured by a Specified BBB-/Baa3 Manufacturer as of such date that
have been turned in to the Manufacturer, delivered for Auction or otherwise
sold, any accrued and unpaid Monthly Base Rent under the Leases with respect to
such Eligible Vehicles (net of amounts set forth in clauses (ii), (iii)
and (iv) above),
and (vi) if such date of determination is during the period from and including
a Determination Date to but excluding the next Program Distribution Date, any
accrued and unpaid Monthly Base Rent under the Leases with respect to such
Eligible Vehicles that have not been turned in to the Manufacturer for Auction
or otherwise sold, as of such date of determination.

“Specified BBB-/Baa3 Manufacturer” means, as of
any day, (i) Hyundai to the extent that Hyundai is rated at least BBB- by Standard & Poor’s and at least Baa3 by Moody’s,
but Hyundai is not rated at least BBB by Standard & Poor’s and at least
Baa2 by Moody’s; (ii) Kia to the extent that Kia is rated at least BBB-
by Standard & Poor’s and at least Baa3
by Moody’s, but Kia is not rated at least BBB by Standard & Poor’s and at
least Baa2 by Moody’s; (iii) Suzuki to the extent that Suzuki is rated
at least BBB- by Standard & Poor’s and
at least Baa3 by Moody’s, but Suzuki is not rated at least BBB by Standard
& Poor’s and at least 

 

47

 

Baa2 by Moody’s or (iv)
Volkswagen to the
extent that Volkswagen is rated at
least BBB- by Standard & Poor’s and at
least Baa3 by Moody’s, but Volkswagen is not rated at least BBB by Standard
& Poor’s and at least Baa2 by Moody’s; provided that upon the
downgrade of any such Manufacturer by a Rating Agency to a rating that would
require inclusion of such Manufacturer in this definition, for purposes of this
definition and each instance in which this definition is used in this Series
Supplement, such Manufacturer shall be deemed to be rated “BBB” and/or “Baa2”,
as applicable, by the Rating Agency which downgraded such Manufacturer for a
period of 30 days following the date of such downgrade.

“Specified BBB-/Baa3 Vehicle Percentage” means,
as of any date of determination, the percentage equivalent of a fraction, the
numerator of which is the Specified BBB-/Baa3 Amount as of such date and the
denominator of which is the Aggregate Asset Amount as of such date.

“Specified BBB-/Baa3 Vehicle Percentage Excess”
means, as of any date of determination, the excess, if any, of the Specified
BBB-/Baa3 Vehicle Percentage as of such date over 10%.

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

“Supermajority Noteholders”
means, with respect to the Series 2005-2 Notes, subject to Section 8.9  of this Series Supplement, Series 2005-2 Noteholders holding 662/3%
or more of the Series 2005-2 Invested Amount (excluding any Series 2005-2 Notes
held by ARG or any Affiliate of ARG).

“Surety Bond” means the
Note Guaranty Insurance Policy No. AB0875BE, dated April 1, 2005, issued by
the Surety Provider.

“Surety Default” means
(i) any failure by the Surety Provider to pay a demand for payment in
accordance with the requirements of the Surety Bond and such failure shall not
have been cured or (ii) the occurrence of an Event of Bankruptcy with respect
to the Surety Provider.

“Surety Provider” means
Ambac Assurance Corporation, a Wisconsin stock insurance company.

“Surety Provider Fee” has
the meaning set forth in the Insurance Agreement.

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

 

48

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

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

“Temporary Global Class A-1
Note” has the meaning specified in Section 6.2 of this Series
Supplement.

“Temporary Global Class A-2
Note” has the meaning specified in Section 6.2 of this Series
Supplement.

“Temporary Global Class A-3
Note” has the meaning specified in Section 6.2 of this Series
Supplement.

“Temporary Global Class A-4
Note” has the meaning specified in Section 6.2 of this Series
Supplement.

“Temporary Global Class A-5
Note” has the meaning specified in Section 6.2 of this Series
Supplement.

“Temporary Global Notes”
has the meaning specified in Section 6.2 of this Series Supplement.

“Termination Date
Disbursement” means an amount drawn under a Series 2005-2 Letter of Credit
pursuant to a Certificate of Termination Date Demand.

“Termination Disbursement”
means an amount drawn under a Series 2005-2 Letter of Credit pursuant to a
Certificate of Termination Demand.

“Unpaid Demand Note
Disbursement” means an amount drawn under a Series 2005-2 Letter of Credit
pursuant to a Certificate of Unpaid Demand Note Demand.

“Unpaid Fee Amounts” has
the meaning specified in Section 2.7(f) of this Series Supplement.

“Vanguard” means Vanguard
Car Rental USA Inc., a Delaware corporation.

“Volkswagen” means
Volkswagen of America, Inc., a New Jersey corporation, and its successors.

ARTICLE II

SERIES 2005-2 ALLOCATIONS

 

49

 

With respect to the Series
2005-2 Notes only, the following shall apply:

Section 2.1             Establishment
and Administration of Series 2005-2 Collection Account, Series 2005-2 Accrued
Interest Account and Series 2005-2 Excess Collection Account.

(a)   Allocation of Collections.  All Collections allocable to the Series
2005-2 Notes pursuant to Section 2.2 of this Series Supplement shall be
allocated to and deposited in the Collection Account.

(b)   Creation of Accounts.  The Trustee will establish as a segregated
trust account, for the benefit of the Series 2005-2 Noteholders, each Series
2005-2 Interest Rate Hedge Provider and the Surety Provider, the Series 2005-2
Excess Collection Account (such account, the “Series 2005-2 Excess
Collection Account”).  The Trustee
will also create or establish as segregated trust accounts, in each case for
the benefit of the Series 2005-2 Noteholders, each Series 2005-2 Interest Rate
Hedge Provider and the Surety Provider, the Series 2005-2 Collection Account
(such account, the “Series 2005-2 Collection Account”) and the Series
2005-2 Accrued Interest Account (such account, the “Series 2005-2 Accrued
Interest Account”).

(c)   Establishment of the Series 2005-2
Collection Account, the Series 2005-2 Accrued Interest Account and the Series
2005-2 Excess Collection Account. 
The Series 2005-2 Excess Collection Account, the Series 2005-2
Collection Account and the Series 2005-2 Accrued Interest Account shall be
established and maintained by the Trustee as segregated trust accounts in the
name of the Trustee for the benefit of the Series 2005-2 Noteholders, each
Series 2005-2 Interest Rate Hedge Provider and the Surety Provider, each
account bearing a designation clearly indicating that the funds deposited
therein are held for the benefit of the Series 2005-2 Noteholders, each Series
2005-2 Interest Rate Hedge Provider and the Surety Provider.  Each such account shall be maintained (i)
with a Qualified Institution or (ii) as a segregated trust account with the
corporate trust department of a depository institution or trust company having
corporate trust powers and acting as trustee for funds deposited in such
account; provided, that, if such account is maintained with a
Qualified Institution and at any time such institution fails to satisfy the
definition of Qualified Institution, then the Trustee shall, within 10 Business
Days of such failure, establish a new segregated trust account with the
corporate trust department of a depository institution or trust company that is
a Qualified Institution having corporate trust powers and acting as trustee for
funds deposited in such account.  If a
new Series 2005-2 Collection Account, Series 2005-2 Accrued Interest Account or
Series 2005-2 Excess Collection Account is established, the Trustee shall
transfer all cash and investments from the previously existing non-qualifying
account into the newly established account. 
Initially, each of the Series 2005-2 Collection Account, the Series
2005-2 Accrued Interest Account and the Series 2005-2 Excess Collection Account
will be established as a segregated trust account with The Bank of New York.

 

50

 

(d)   Administration of the Series 2005-2
Collection Account, the Series 2005-2 Accrued Interest Account and the Series
2005-2 Excess Collection Account. 
ARG may instruct (by standing instructions or otherwise) the institution
maintaining the Series 2005-2 Excess Collection Account, the Series 2005-2
Collection Account and/or the Series 2005-2 Accrued Interest Account, as the
case may be, to invest funds on deposit in each such account from time to time
in Permitted Investments; provided, however, that any such
investment shall mature not later than the Business Day immediately prior to
the Distribution Date for any class of Series 2005-2 Notes next following the
date on which such funds were received, unless any Permitted Investment held in
any such account is held with the Paying Agent, in which case such investment
may mature on such Distribution Date so long as such funds shall be available
for withdrawal on or prior to such Distribution Date.  All such Permitted Investments in respect of
each such account will be credited to such account and any such Permitted
Investments that constitute (i) Physical Property (and that is not either a
United States Security Entitlement or a Security Entitlement) or Uncertificated
Securities (and not United States Security Entitlements) shall be delivered to
the Trustee in accordance with the definition of “Delivery” and shall be held
by the Trustee pending maturity or disposition and (ii) United States Security
Entitlements or Security Entitlements shall be Controlled by the Trustee
pending maturity or disposition.  The
Trustee shall, at the expense of ARG, take such action as is requested of it to
maintain the Trustee’s security interest in the Permitted Investments credited
to the Series 2005-2 Collection Account, the Series 2005-2 Accrued Interest
Account and the Series 2005-2 Excess Collection Account.  ARG shall not direct the Trustee to dispose
of (or permit the disposal of) any Permitted Investments prior to the maturity
thereof to the extent such disposal would result in a loss of the purchase
price of such Permitted Investments.  In
the absence of written investment instructions hereunder, funds on deposit in
any of the Series 2005-2 Collection Account, the Series 2005-2 Accrued Interest
Account and the Series 2005-2 Excess Collection Account shall remain
uninvested.

(e)   Earnings from the Series 2005-2 Collection
Account, the Series 2005-2 Accrued Interest Account and the Series 2005-2
Excess Collection Account.  All
interest and earnings (net of losses and investment expenses) paid on funds on
deposit in each of the Series 2005-2 Collection Account, the Series 2005-2
Accrued Interest Account and the Series 2005-2 Excess Collection Account shall
be deemed to be on deposit therein and available for distribution.

(f)    Series 2005-2 Excess Collection Account
Constitutes Additional Collateral for Series 2005-2 Notes.  In order to secure and provide for the
repayment and payment of the ARG Obligations with respect to the Series 2005-2
Notes, ARG hereby grants a security interest in and assigns, pledges, grants,
transfers and sets over to the Trustee, for the benefit of the Series 2005-2
Noteholders, each Series 2005-2 Interest Rate Hedge Provider and the Surety
Provider, all of ARG’s right, title and interest in and to the following
(whether now or hereafter existing or acquired):  (i) the Series 2005-2 Excess Collection
Account, including any security entitlement thereto; (ii) all funds on deposit
in the Series 2005-2 Excess Collection Account from time to time; (iii) all

 

51

 

certificates and instruments, if any, representing or
evidencing any or all of the Series 2005-2 Excess Collection 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 2005-2 Excess Collection
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
2005-2 Excess Collection Account, the funds on deposit therein from time to
time or the investments made with such funds; and (vi) all proceeds of any and
all of the foregoing, including, without limitation, cash (the items in the
foregoing clauses (i) through (vi) are referred to, collectively, as the “Series
2005-2 Excess Collection Account Collateral”).  The Trustee, for the benefit of the Series
2005-2 Noteholders, each Series 2005-2 Interest Rate Hedge Provider and the
Surety Provider, shall possess all right, title and interest in all funds on
deposit from time to time in the Series 2005-2 Excess Collection Account and in
all proceeds thereof and shall be the only person authorized to originate
entitlement orders in respect of the Series 2005-2 Excess Collection
Account.  The Series 2005-2 Excess Collection
Account Collateral shall be under the sole dominion and control of the Trustee,
for the benefit of the Series 2005-2 Noteholders, each Series 2005-2 Interest
Rate Hedge Provider and the Surety Provider.

(g)   Series 2005-2 Collection Account and
Series 2005-2 Accrued Interest Account Constitute Additional Collateral for
Series 2005-2 Notes.  In order to
secure and provide for the payment of the ARG Obligations with respect to the
Series 2005-2 Notes, ARG hereby grants a security interest in and assigns,
pledges, grants, transfers and sets over to the Trustee, for the benefit of the
Series 2005-2 Noteholders, each Series 2005-2 Interest Rate Hedge Provider and
the Surety Provider, all of ARG’s right, title and interest in and to the
following (whether now or hereafter existing or acquired):  (i) the Series 2005-2 Collection Account and
the Series 2005-2 Accrued Interest Account, including any security entitlement
thereto; (ii) all funds on deposit in the Series 2005-2 Collection Account and
the Series 2005-2 Accrued Interest Account, from time to time; (iii) all
certificates and instruments, if any, representing or evidencing any or all of
the Series 2005-2 Collection Account and the Series 2005-2 Accrued Interest
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 2005-2
Collection Account and the Series 2005-2 Accrued Interest 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 2005-2
Collection Account and the Series 2005-2 Accrued Interest Account, the funds on
deposit therein from time to time or the investments made with such funds; and
(vi) all proceeds of any and all of the foregoing, including, without
limitation, cash (the items in the foregoing clauses (i) through (vi) are
referred to, collectively, as the “Series 2005-2 Additional Account
Collateral”).  The Trustee, for the
benefit of the Series 2005-2 Noteholders, each Series 2005-2 Interest Rate
Hedge Provider and the Surety Provider, shall possess all right, title and
interest in all funds on deposit from time to time in the Series 2005-2 

 

52

 

Collection Account and the Series 2005-2 Accrued
Interest Account and in all proceeds thereof and shall be the only person
authorized to originate entitlement orders in respect of each such
account.  The Series 2005-2 Additional
Account Collateral shall be under the sole dominion and control of the Trustee,
for the benefit of the Series 2005-2 Noteholders, each Series 2005-2 Interest
Rate Hedge Provider and the Surety Provider.

 

53

 

Section 2.2             Allocations with Respect to the
Series 2005-2 Notes.

On the Series 2005-2 Closing
Date, the net proceeds from the issuance of the Series 2005-2 Notes will be
deposited into the Series 2005-2 Collection Account.  On each Business Day on which Collections are
deposited into the Collection Account (each such date, a “Series 2005-2
Deposit Date”), the Servicer will direct the Trustee in writing to allocate
all amounts deposited into the Collection Account in accordance with the
provisions of this Section 2.2.

(a)   Allocations of Collections During the
Series 2005-2 Revolving Period. 
During the Series 2005-2 Revolving Period, the Servicer will direct the
Trustee in writing to allocate, prior to 12:00 noon (New York City time) on
each Series 2005-2 Deposit Date, all amounts deposited into the Collection
Account as set forth below:

(i)            allocate to and deposit in the
Series 2005-2 Collection Account an amount equal to the sum of (A) the Series
2005-2 Invested Percentage (as of such day) of the aggregate amount of Interest
Collections on such day and (B) any amounts received by the Trustee on such day
in respect of each Series 2005-2 Interest Rate Hedge.  All such amounts allocated to the Series
2005-2 Collection Account shall be further allocated to the Series 2005-2
Accrued Interest Account; and

(ii)           allocate to and deposit in the Series
2005-2 Excess Collection Account (A) an amount equal to the Series 2005-2
Invested Percentage (as of such day) of the aggregate amount of Principal
Collections on such day and (B) on the Series 2005-2 Closing Date, the net
proceeds from the issuance of the Series 2005-2 Notes (for any such day, the “Series
2005-2 Principal Allocation”).

(b)   Allocations of Collections During the
Series 2005-2 Controlled Amortization Period.  During each Series 2005-2 Controlled
Amortization Period, the Servicer will direct the Trustee in writing to
allocate, prior to 12:00 noon (New York City time) on each Series 2005-2
Deposit Date, all amounts deposited into the Collection Account as set forth
below:

(i)            allocate to and deposit in the
Series 2005-2 Collection Account an amount determined as set forth in Section
2.2(a)(i) above for such day, which amount shall be further allocated to
and deposited in the Series 2005-2 Accrued Interest Account; and

(ii)           (A) during the Class A-1/A-2
Controlled Amortization Period, allocate to and deposit in the Series 2005-2
Collection Account an amount equal to the Series 2005-2 Principal Allocation
for such day, which amount shall be used to make principal payments in respect
of the Class A-1 Notes and the Class A-2 Notes up to an amount equal to the
Class A-1/A-2 Controlled Distribution Amount for the current Related Month;
provided, however, that if the Monthly Total Principal Allocation for the
current Related Month exceeds the Class A-

 

54

 

1/A-2 Controlled
Distribution Amount for such Related Month, then such excess will be allocated to
and deposited in the Series 2005-2 Excess Collection Account, (B) during the
Class A-3 Controlled Amortization Period, allocate to and deposit in the Series
2005-2 Collection Account an amount equal to the Series 2005-2 Principal
Allocation for such day, which amount shall be used to make principal payments
in respect of the Class A-3 Notes up to an amount equal to the Class A-3
Controlled Distribution Amount for the current Related Month; provided,
however, that if the Monthly Total Principal Allocation for the current Related
Month exceeds the Class A-3 Controlled Distribution Amount for such Related
Month, then such excess will be allocated to and deposited in the Series 2005-2
Excess Collection Account and (C) during the Class A-4/A-5 Controlled Amortization
Period, allocate to and deposit in the Series 2005-2 Collection Account an
amount equal to the Series 2005-2 Principal Allocation for such day, which
amount shall be used to make principal payments in respect of the Class A-4
Notes and the Class A-5 Notes up to an amount equal to the Class A-4/A-5
Controlled Distribution Amount for the current Related Month; provided,
however, that if the Monthly Total Principal Allocation for the current Related
Month exceeds the Class A-4/A-5 Controlled Distribution Amount for such Related
Month, then such excess will be allocated to and deposited in the Series 2005-2
Excess Collection Account.

(c)   Allocations of Collections During the
Series 2005-2 Rapid Amortization Period. 
During the Series 2005-2 Rapid Amortization Period, the Servicer will
direct the Trustee in writing to allocate, prior to 12:00 noon (New York City
time) on any Series 2005-2 Deposit Date, all amounts deposited into the
Collection Account as set forth below:

(i)            allocate to and deposit in the Series
2005-2 Collection Account an amount determined as set forth in Section
2.2(a)(i) above for such day, which amount shall be further allocated to
the Series 2005-2 Accrued Interest Account; and

(ii)           allocate to and deposit in the Series
2005-2 Collection Account an amount equal to the Series 2005-2 Principal
Allocation for such day, which amount shall be ratably allocated among each
outstanding Class of Series 2005-2 Notes based on the Class Invested Amount of
each Class of Series 2005-2 Notes on such Series 2005-2 Deposit Date, and used
to make principal payments in respect of each Class of Series 2005-2 Notes in
accordance with Section 2.5 of this Series Supplement until the Series
2005-2 Invested Amount has been paid in full, and then shall be used to pay all
Surety Provider Fees and Surety Provider Reimbursement Amounts until such
amounts are paid in full, and then, for so long as no payment default by the
related Series 2005-2 Interest Rate Hedge Provider under its related Series
2005-2 Interest Rate Hedge has occurred and is continuing, shall be used to pay
any amounts (including but not limited to any termination payments) then due
and owing to each Series 2005-2 Interest Rate

 

55

 

Hedge Provider (and not
then available to be paid from Interest Collections), provided that if
on the Determination Date immediately preceding a Distribution Date (A) the
Servicer determines that the amount anticipated to be available to pay the
Series 2005-2 Periodic Interest with respect to any class of Series 2005-2
Notes and the Series 2005-2 Interest Rate Hedge Premium, if any, payable on
such Distribution Date from Interest Collections allocable to the Series 2005-2
Notes pursuant to Section 2.2(c)(i) above, any amounts payable in
respect of each Series 2005-2 Interest Rate Hedge on such Distribution Date and
any other amounts available under Section 2.3 (excluding Section
2.3(g) thereof) of this Series Supplement will be insufficient to pay such
Series 2005-2 Periodic Interest and such Series 2005-2 Interest Rate Hedge
Premium, if any, and (B) the Series 2005-2 Overcollateralization Amount as of
such Determination Date is greater than zero, then the Servicer shall direct
the Trustee in writing to reallocate a portion of the Principal Collections
originally allocated to the Series 2005-2 Notes during the Related Month with
respect to such Distribution Date in an amount equal to the lesser of such
insufficiency and the Series 2005-2 Overcollateralization Amount as of such Determination
Date and deposit such amount into the Series 2005-2 Accrued Interest Account to
be treated as Interest Collections on such Distribution Date.

(d)   Past Due Rental Payments.  Notwithstanding the foregoing, if, after the
occurrence of a Series 2005-2 Lease Payment Deficit, a Lessee and/or Vanguard
Holdings, as guarantor under the Leases, makes a payment of any amount payable
by a Lessee under the Leases on or prior to the fifth Business Day after the
occurrence of such Series 2005-2 Lease Payment Deficit (a “Past Due Rent
Payment”), the Servicer shall direct the Trustee in writing to deposit into
the Series 2005-2 Collection Account an amount equal to the Series 2005-2
Invested Percentage, as of the date of the occurrence of such Series 2005-2
Lease Payment Deficit, of the Collections attributable to such Past Due Rent
Payment (the “Series 2005-2 Past Due Rent Payment”) and the Servicer
shall instruct the Trustee in writing to withdraw from the Series 2005-2
Collection Account and apply the Series 2005-2 Past Due Rent Payment in the
following order:

(i)            if the occurrence of such Series
2005-2 Lease Payment Deficit resulted in a demand for payment being made under
the Surety Bond, pay to the Surety Provider an amount equal to the lesser of
(x) the unreimbursed amount of the payment made by the Surety Provider under
the Surety Bond in respect of such demand and (y) the amount of the Series
2005-2 Past Due Rent Payment;

(ii)           if the occurrence of such Series
2005-2 Lease Payment Deficit resulted in a withdrawal being made from the
Series 2005-2 Reserve Account, deposit in the Series 2005-2 Reserve Account an
amount equal to the lesser of (x) the amount of the Series 2005-2 Past Due Rent
Payment remaining after any payment pursuant to clause (i) above and (y) the
excess, if any, of the Series 2005-2 Required Reserve Account Amount over the
Series 2005-2 Available Reserve Account Amount on such day;

 

56

 

(iii)          if the occurrence of such Series
2005-2 Lease Payment Deficit resulted in one or more draws on a Series 2005-2
Letter of Credit, pay to each Series 2005-2 Letter of Credit Provider who made
a Lease Deficit Disbursement an amount equal to the lesser of (x) the
unreimbursed amount of such Series 2005-2 Letter of Credit Provider’s Lease
Deficit Disbursement and (y) such Series 2005-2 Letter of Credit Provider’s pro
rata share, calculated on the basis of the unreimbursed amount of each
such Series 2005-2 Letter of Credit Provider’s Lease Deficit Disbursement, of
the amount of the Series 2005-2 Past Due Rent Payment remaining after any
payments pursuant to clauses (i) and (ii) above;

(iv)          if the occurrence of such
Series 2005-2 Lease Payment Deficit resulted in a withdrawal being made from
the Series 2005-2 Cash Collateral Account, deposit in the Series
2005-2 Cash Collateral Account an amount equal to the lesser of (x) the
amount of the Series 2005-2 Past Due Rent Payment remaining after any payments
pursuant to clauses (i) through (iii) above and (y) the amount withdrawn
from the Series 2005-2 Cash Collateral Account on account of such Series 2005-2
Lease Payment Deficit;

(v)           allocate to and deposit in the
Series 2005-2 Accrued Interest Account the amount, if any, by which the Series
2005-2 Lease Interest Payment Deficit, if any, relating to such Series 2005-2
Past Due Rent Payment exceeds the Series 2005-2 Past Due Rent Payment applied
pursuant to clauses (i) through (iv) above; and

(vi)          allocate to and deposit in the Series
2005-2 Excess Collection Account and treat as Principal Collections the
remaining amount of the Series 2005-2 Past Due Rent Payment.

(e)   Amounts Allocated from Other Series.  Amounts allocated from all other Series of
Notes pursuant to the applicable Series Supplement to the payment of the principal
of the Series 2005-2 Notes shall be allocated to and deposited in the Series
2005-2 Excess Collection Account and applied in accordance with Section
2.2(f) of this Series Supplement.

(f)    Series 2005-2 Excess Collection Account.  Amounts allocated to the Series 2005-2 Excess
Collection Account on any Series 2005-2 Deposit Date will be (i) first,
transferred to the Series 2005-2 Reserve Account in an amount up to the excess,
if any, of the Series 2005-2 Required Reserve Account Amount for such date over
the Series 2005-2 Available Reserve Account Amount for such date, only to the
extent that no Series 2005-2 Enhancement Deficiency or other Amortization Event
with respect to the Series 2005-2 Notes would result therefrom, (ii) second,
used to pay the principal amount of other Series of Group I Notes that are then
required to be paid or, at the option of ARG, to pay the principal amount of
other Series of Group I Notes that may be paid under the Indenture, in each
case, only to the extent that no Series 2005-2 Enhancement Deficiency or other
Amortization Event with respect to the Series 2005-2 Notes would result
therefrom, (iii) third, for so long as no payment default by the related
Series 2005-2 Interest Rate Hedge Provider under its related Series 2005-2 Interest
Rate Hedge has occurred and is continuing, used to pay any amounts (including
but not limited to any termination payments) then due and owing to each Series
2005-2 Interest Rate Hedge Provider (and not then available to be paid from
Interest Collections), (iv) fourth, for so long as no payment
default by the Series 2005-2 Initial Interest Rate Hedge Provider under its
related Series 2005-2 Interest Rate Hedge has occurred and is continuing, and
without duplication of any amounts paid under clause (f)(iii) above,
transferred to the Series 2005-2 Interest Rate Hedge Collateral Account in an
amount up to the excess, if any, of the Series 2005-2 Required Interest Rate
Hedge Collateral Account Amount for such date over the Series 2005-2 Available
Interest Rate Hedge Collateral Account Amount for such date, only to the extent
that no Series 2005-2 Enhancement Deficiency or other Amortization Event with
respect to the Series 2005-2 Notes would

 

57

 

result therefrom, and (v) fifth, any
remaining funds may be released to ARG and used to fund increases in the
principal amounts of the Leasing Company Notes to the extent the Leasing
Companies have requested increases thereof or for any other purpose, only to
the extent that no Series 2005-2 Enhancement Deficiency or other Amortization
Event with respect to the Series 2005-2 Notes would result therefrom.  Notwithstanding the foregoing, upon the
occurrence of an Amortization Event with respect to the Series 2005-2 Notes,
all funds allocated to the Series 2005-2 Excess Collection Account will be
allocated as Principal Collections by the Trustee and deposited to the Series
2005-2 Collection Account and applied in accordance with Section 2.2(c)(ii)
of this Series Supplement.

(g)   Series 2005-2 Lease Principal Payment
Deficit.  On or before 10:00 a.m.
(New York City time) on each Distribution Date, the Servicer shall notify the
Trustee of the amount of any Series 2005-2 Lease Payment Deficit, such
notification to be in the form of Exhibit E to this Series Supplement
(each such notification, a “Lease Payment Deficit Notice”).  If the Servicer determines on any
Distribution Date on which the Principal Deficit Amount is greater than zero
that there exists a Series 2005-2 Lease Principal Payment Deficit, the Servicer
shall instruct the Trustee in writing to draw on the Series 2005-2 Letters of
Credit, if any, and, upon receipt of such notice by the Trustee on or prior to
11:00 a.m. (New York City time) on such Distribution Date, the Trustee shall,
by 12:00 noon (New York City time) on such Distribution Date draw an amount
equal to the least of (i) such Series 2005-2 Lease Principal Payment Deficit,
(ii) the Series 2005-2 Letter of Credit Liquidity Amount, (iii) the Principal
Deficit Amount and (iv) the excess, if any, of the Series 2005-2 Liquidity
Amount over the Series 2005-2 Required Liquidity Amount on the Series 2005-2
Letters of Credit by presenting to each Series 2005-2 Letter of Credit Provider
a draft accompanied by a Certificate of Lease Deficit Demand and shall cause
the Lease Deficit Disbursements to be deposited in the Series 2005-2
Distribution Account on such Distribution Date; provided, however,
that if the Series 2005-2 Cash Collateral Account has been established and
funded, the Trustee shall withdraw from the Series 2005-2 Cash Collateral
Account and deposit in the Series 2005-2 Distribution Account an amount equal
to the lesser of (x) the Series 2005-2 Cash Collateral Percentage on such
Distribution Date of the least of the amounts described in

 

58

 

clauses (i) through (iv) above and (y) the Series
2005-2 Available Cash Collateral Account Amount on such Distribution Date and
draw an amount equal to the remainder of such amount on the Series 2005-2
Letters of Credit.

Section 2.3             Distribution
Dates.

(a)   Determination Dates.  On each Determination Date, as provided in Section
2.3(b) below, the Servicer shall instruct the Trustee in writing to
withdraw, and on the next succeeding Distribution Date the Trustee, acting in
accordance with such instructions, shall withdraw the amounts required to be
withdrawn from the Series 2005-2 Accrued Interest Account pursuant to Sections
2.3(b) below in respect of all funds available from Interest Collections
processed since the preceding Distribution Date and allocated to the Series
2005-2 Noteholders and all amounts received by the Trustee in respect of each
Series 2005-2 Interest Rate Hedge.

(b)   Note Interest with respect to the Series
2005-2 Notes, Payments

on each Series 2005-2 Interest Rate Hedge and the Surety Provider Fee.  On each Determination Date, the Servicer
shall instruct the Trustee and the Paying Agent in writing as to the amount to
be withdrawn from the Series 2005-2 Accrued Interest Account and deposited to
the Series 2005-2 Distribution Account for payment pursuant to Section 2.4
of this Series Supplement to the extent funds are anticipated to be available
from Interest Collections allocable to the Series 2005-2 Notes and processed
during the period from but not including the most recent Distribution Date
through and including the next succeeding Distribution Date and all amounts
received under each Series 2005-2 Interest Rate Hedge during such period, in
respect of (w) first, an amount equal to the Series 2005-2 Periodic
Interest for the Series 2005-2 Interest Period ending on the day preceding such
Distribution Date, (x) second, an amount equal to the Series 2005-2
Interest Rate Hedge Premium for the next succeeding Distribution Date, (y) third,
an amount equal to the amount of any unpaid Series 2005-2 Deficiency Amounts as
of the preceding Distribution Date (together with any accrued interest on such
Series 2005-2 Deficiency Amounts) and (z) fourth, an amount equal to the
sum of the (i) Surety Provider Fee for such Series 2005-2 Interest Period plus
(ii) any Surety Provider Reimbursement Amounts then due and owing to the Surety
Provider under the Insurance Agreement. 
On the following Distribution Date, the Trustee shall withdraw the
amounts available from Interest Collections described in the first sentence of
this Section 2.3(b), together with the amounts received under each
Series 2005-2 Interest Rate Hedge described therein, from the Series 2005-2
Accrued Interest Account and shall deposit such amounts into the Series 2005-2
Distribution Account.

(c)   Reserved.

(d)   Withdrawals from the Series 2005-2 Reserve
Account.  If the Servicer determines
on any Distribution Date that the amounts available from the Series 2005-2
Accrued Interest Account, including amounts available under each Series 2005-2
Interest Rate Hedge, are insufficient to pay the sum of the amounts described
in clauses (w), (x),

 

59

 

(y) and
(z) of Section 2.3(b) above on such Distribution Date, the
Servicer shall instruct the Trustee in writing to withdraw from the Series
2005-2 Reserve Account and deposit in the Series 2005-2 Distribution Account on
such Distribution Date an amount equal to the lesser of the Series 2005-2
Available Reserve Account Amount and such insufficiency; provided, however,
that after the occurrence and during the continuance of a Surety Default, no
amounts in respect of the Surety Provider Fee shall be withdrawn from the
Series 2005-2 Reserve Account.  The
Trustee shall withdraw such amount from the Series 2005-2 Reserve Account and
deposit such amount in the Series 2005-2 Distribution Account.

(e)   Draws on the Series 2005-2 Letters of
Credit to Pay Interest and Costs.  If
the Servicer determines on any Distribution Date that the sum of the amounts
available from the Series 2005-2 Accrued Interest Account, the amounts
available under each Series 2005-2 Interest Rate Hedge plus the amount, if any,
to be withdrawn from the Series 2005-2 Reserve Account pursuant to Section
2.3(d) above is insufficient to pay the sum of the amounts described in clauses
(w), (x), (y) and (z) of Section 2.3(b) above
on such Distribution Date and there exists a Series 2005-2 Lease Interest
Payment Deficit on such Distribution Date, the Servicer shall instruct the
Trustee in writing to draw on the Series 2005-2 Letters of Credit, if any, and,
upon receipt of such notice by the Trustee on or prior to 11:00 a.m. (New York
City time) on such Distribution Date, the Trustee shall, by 12:00 noon (New
York City time) on such Distribution Date draw an amount equal to the least of
(i) such insufficiency, (ii) the Series 2005-2 Lease Interest Payment Deficit
on such Distribution Date and (iii) the Series 2005-2 Letter of Credit Liquidity
Amount on the Series 2005-2 Letters of Credit by presenting to each Series
2005-2 Letter of Credit Provider a draft accompanied by a Certificate of Lease
Deficit Demand and shall cause the Lease Deficit Disbursement to be deposited
in the Series 2005-2 Distribution Account on such Distribution Date; provided,
however  that if the Series 2005-2 Cash Collateral Account has
been established and funded, the Trustee shall withdraw from the Series 2005-2
Cash Collateral Account and deposit in the Series 2005-2 Distribution Account
an amount equal to the lesser of (x) the Series 2005-2 Cash Collateral
Percentage on such Distribution Date of the least of clauses (i), (ii) and
(iii) above and (y) the Series 2005-2 Available Cash Collateral Account Amount
on such Distribution Date, and draw an amount equal to the remainder of such
amount on the Series 2005-2 Letters of Credit.

(f)    Reserved.

(g)   Surety Bond.  (i) If the Servicer determines on the second
Business Day prior to any Distribution Date that the Series 2005-2 Liquidity
Amount on such date of determination together with any amounts then on deposit
in the Series 2005-2 Accrued Interest Account and any amounts expected to be
paid to ARG on such Distribution Date under each Series 2005-2 Interest Rate
Hedge, if any, is insufficient to pay the amounts set forth under clause (a)
and clause (b) (i) of each of the Class A-1 Adjusted Periodic Interest, the
Class A-2 Adjusted Periodic Interest, the Class A-3 Adjusted Periodic Interest,
the Class A-4 Adjusted Periodic Interest and the Class A-5 Adjusted Periodic
Interest definitions which is due on such upcoming Distribution Date, the
Servicer shall

 

60

 

certify such insufficiency to the Trustee and shall
instruct the Trustee in writing to certify such insufficiency to the Surety
Provider and, upon receipt of such certification by the Trustee on or prior to
11:00 a.m. (New York City time) on the second Business Day preceding such
Distribution Date, the Trustee shall, by 12:00 noon (New York City time) on the
second Business Day preceding such Distribution Date certify such insufficiency
to the Surety Provider.

(ii)                   If the Servicer determines on
any Distribution Date that the sum of the amounts available from the Series 2005-2
Accrued Interest Account plus the amount available under each Series
2005-2 Interest Rate Hedge plus the amount, if any, to be withdrawn from
the Series 2005-2 Reserve Account pursuant to Section 2.3(d) above plus
the amount, if any, to be drawn under the Series 2005-2 Letters of Credit
(and/or withdrawn from the Series 2005-2 Cash Collateral Account) pursuant to Section
2.3(e) above is insufficient to pay the amounts set forth under clause (a)
and clause (b) (i) of each of the Class A-1 Adjusted Periodic Interest, the
Class A-2 Adjusted Periodic Interest, the Class A-3 Adjusted Periodic Interest,
the Class A-4 Adjusted Periodic Interest and the Class A-5 Adjusted Periodic
Interest definitions for such Distribution Date, the Servicer shall instruct the
Trustee in writing to make a demand on the Surety Bond and, upon receipt of
such notice by the Trustee on or prior to 11:00 a.m. (New York City time) on
such Distribution Date, the Trustee shall, by 12:00 noon (New York City time)
on such Distribution Date, make a demand on the Surety Bond in an amount equal
to such insufficiency in accordance with the terms thereof and shall cause the
proceeds thereof to be deposited in the Series 2005-2 Distribution Account.

(iii)                          If the amounts
described in this Section 2.3(g) are insufficient to pay the Series
2005-2 Adjusted Periodic Interest for any Distribution Date, payments of
interest to the Series 2005-2 Noteholders will be reduced on a pro  rata
basis by the amount of such deficiency. 
The aggregate amount, if any, of such deficiency on any Distribution
Date shall be referred to as the “Series 2005-2 Deficiency Amount”.  Interest shall accrue on the portion of the
Series 2005-2 Deficiency Amount allocable to the Class A-1 Notes at the Class
A-1 Note Rate for each Interest Period therefor, on the portion of the Series
2005-2 Deficiency allocable to the Class A-2 Notes at the Class A-2 Note Rate
for each Interest Period therefor, on the portion of the Series 2005-2
Deficiency allocable to the Class A-3 Notes at the Class A-3 Note Rate for each
Interest Period therefor, on the portion of the Series 2005-2 Deficiency
allocable to the Class A-4 Notes at the Class A-4 Note Rate for each Interest
Period therefor and on the portion of the Series 2005-2 Deficiency allocable to
the Class A-5 Notes at the Class A-5 Note Rate for each Interest Period
therefor.  If the Series 2005-2
Deficiency Amount (together with interest thereon) is not paid in full within
five (5) Business Days, an Amortization Event with respect to the Series 2005-2
Notes shall occur in accordance with clause (a) of Article III of
this Series Supplement.

(h)   Balance.  On each Distribution Date, the Servicer shall
instruct the Trustee and the Paying Agent in writing to pay the balance in the
Series 2005-2 Accrued Interest Account (after making the payments required in Section
2.3(b) above), if any, of

 

61

 

amounts received by the Trustee in respect of each
Series 2005-2 Interest Rate Hedge and the Interest Collections allocated to the
Series 2005-2 Noteholders since the most recent Distribution Date as
follows:  (i) first, to the
Trustee, in an amount equal to the Series
2005-2 Percentage as of the immediately preceding Distribution Date of
the Trustee’s fees for the Interest Period ending on such Distribution Date,
(ii) second, to pay any Carrying Charges (other than Carrying Charges
provided for above) to the Persons to whom such amounts are owed, in an amount
equal to the Series 2005-2 Percentage as of the immediately preceding
Distribution Date of such Carrying Charges (other than Carrying Charges
provided for above) for such Interest Period, and (iii) third, the
balance, if any, shall be withdrawn from the Series 2005-2 Accrued Interest
Account by the Trustee and (A) during the Series 2005-2 Revolving Period,
deposited into the Series 2005-2 Excess Collection Account, and (B) during the
Series 2005-2 Controlled Amortization Period or the Series 2005-2 Rapid
Amortization Period, deposited into the Series 2005-2 Collection Account and
treated as Principal Collections.

Section 2.4             Payment
of Note Interest, Surety Provider Fee, Surety Provider Reimbursement Amounts
and Series 2005-2 Interest Rate Hedge Premium.

On each Distribution Date, the Paying Agent shall, in
accordance with Section 6.1 of the Base Indenture, pay to the Series 2005-2
Noteholders from the Series 2005-2 Distribution Account the amount deposited in
the Series 2005-2 Distribution Account for the payment of interest pursuant to
Section 2.3 of this Series Supplement (including any unpaid Series 2005-2
Deficiency Amounts as of the preceding Distribution Date).  On each Distribution Date, the Servicer shall
instruct the Trustee and the Paying Agent in writing to pay, and the Trustee or
the Paying Agent shall pay, from the Series 2005-2 Distribution Account (after
the payment of interest to Series 2005-2 Noteholders pursuant to this Section
2.4) (i) first, to each Series 2005-2 Interest Rate Hedge Provider, the Series
2005-2 Interest Rate Hedge Premium, if any, for such Distribution Date and (ii)
second, to the Surety Provider, an amount equal to the sum of (x) the Surety
Provider Fee for the related Interest Period and, without duplication, (y) any
Surety Provider Reimbursement Amounts then due and owing to the Surety Provider
under the Insurance Agreement.

Section 2.5             Payment
of Note Principal.

(a)   Monthly Payments During Controlled
Amortization Period or Rapid Amortization Period.  Commencing on the second Determination Date
during the Class A-1/A-2 Controlled Amortization Period, the Class A-3
Controlled Amortization Period or the Class A-4/A-5 Controlled Amortization
Period, as the case may be, or the first Determination Date after the
commencement of the Series 2005-2 Rapid Amortization Period and on each Determination
Date thereafter, the Servicer shall instruct the Trustee and the Paying Agent
in writing as to the amount allocated to the Series 2005-2 Notes of such Class
during the Related Month pursuant to Section 2.2(b)(ii) or (c)(ii),
as the case may be, of this Series Supplement and, as applicable, allocated
pursuant to the last sentence of Section 2.2(f) of
this Series Supplement.  On the
Distribution Date following

 

62

 

each such Determination Date, the Trustee shall
withdraw the amount allocated to the Series 2005-2 Notes of such Class during
the Related Month pursuant to Section 2.2(b)(ii) or (c)(ii), as
the case may be, of this Series Supplement from the Series 2005-2 Collection
Account and, as applicable, withdraw the amount allocated pursuant to the last
sentence of  Section 2.2(f) of
this Series Supplement from the Series 2005-2 Excess Collection Account and
deposit such amounts, including any amounts reallocated to the Series 2005-2
Notes from other Series of Group I Notes pursuant to Section 5.2(c) of the Base
Indenture, in the Series 2005-2 Distribution Account, to be paid to the holders
of the Series 2005-2 Notes of such Class.

(b)   Final Distribution Date with Respect to
Series 2005-2 Notes.  If the amount
to be deposited in the Series 2005-2 Distribution Account in accordance with Section
2.5(a) of this Series Supplement with respect to the Class A-1/A-2 Final
Distribution Date, the Class A-3 Final Distribution Date or the Class A-4/A-5
Final Distribution Date, as the case may be, is less than the
Class A-1 Outstanding Principal Amount, the Class A-2 Outstanding Principal
Amount, the Class A-3 Outstanding Principal Amount, the Class A-4 Outstanding
Principal Amount or the Class A-5 Outstanding Principal Amount, as the case may
be, on such Final Distribution Date, prior to 10:00 a.m. (New York City time)
on the second Business Day prior to such Final Distribution Date, the Servicer
shall instruct the Trustee to withdraw from the Series 2005-2 Reserve Account
an amount equal to the lesser of the Series 2005-2 Available Reserve Account
Amount and the aggregate amount of such insufficiency with respect to such
Final Distribution Date and deposit such amount in the Series 2005-2
Distribution Account on or prior to such Final Distribution Date.  The Trustee shall withdraw such amount from
the Series 2005-2 Reserve Account and deposit such amount in the Series 2005-2
Distribution Account on or prior to such Final Distribution Date.  If the Series 2005-2 Available Reserve
Account Amount is less than such insufficiency and there are any Series 2005-2
Letters of Credit on such date, prior to 10:00 a.m. (New York City time) on the
second Business Day prior to such Final Distribution Date, the Servicer shall
instruct the Trustee in writing to make a demand (the notice of any such
demand, a “Demand Notice”) on Vanguard for payment under the Series
2005-2 Demand Note in an amount equal to the lesser of (i) such remaining
insufficiency and (ii) the Series 2005-2 Letter of Credit Amount.  The Trustee shall, prior to 12:00 noon (New
York City time) on the second day preceding such Final Distribution Date,
deliver such Demand Notice to Vanguard; provided, however, that
if an Event of Bankruptcy (or the occurrence of an event described in clause
(a) of the definition thereof, without the lapse of a period of 60
consecutive days) with respect to Vanguard shall have occurred and be
continuing, the Trustee shall not be required to deliver such Demand Notice to
Vanguard.  The Trustee shall cause the
proceeds of any demand on the Series 2005-2 Demand Note to be deposited into
the Series 2005-2 Distribution Account. 
In the event that either (x) on or prior to 10:00 a.m. (New York City
time) on the Business Day immediately preceding such Final Distribution Date,
Vanguard shall have failed to pay to the Trustee or deposit into the Series
2005-2 Distribution Account the amount specified in a Demand Notice transmitted
by the Trustee to Vanguard pursuant to this Section 2.5(b) in whole or
in part or (y) due to the occurrence of an Event of Bankruptcy (or the
occurrence of an event

 

63

 

described in clause (a) of the definition
thereof, without the lapse of a period of 60 consecutive days) with respect to
Vanguard, the Trustee shall not have delivered such Demand Notice to Vanguard
on the second Business Day preceding such Final Distribution Date, the Trustee
shall draw on the Series 2005-2 Letters of Credit, by 12:00 noon (New York City
time) on such Business Day an amount equal to the lesser of (a) the amount that
Vanguard failed to pay under the Series 2005-2 Demand Note (or, the amount that
the Trustee failed to demand for payment thereunder) and (b) the Series 2005-2
Letter of Credit Amount on such Business Day, by presenting to each Series
2005-2 Letter of Credit Provider a draft accompanied by a Certificate of Unpaid
Demand Note Demand; provided, however that if the Series 2005-2
Cash Collateral Account has been established and funded, the Trustee shall
withdraw from the Series 2005-2 Cash Collateral Account and deposit in the
Series 2005-2 Distribution Account an amount equal to the lesser of (x) the
Series 2005-2 Cash Collateral Percentage on such Business Day of the amount
that Vanguard failed to pay under the Series 2005-2 Demand Note (or, the amount
that the Trustee failed to demand for payment thereunder) and (y) the Series
2005-2 Available Cash Collateral Account Amount on such Business Day and draw
an amount equal to the remainder of the amount that Vanguard failed to pay
under the Series 2005-2 Demand Note (or, the amount that the Trustee failed to
demand for payment thereunder) on the Series 2005-2 Letters of Credit.  The Trustee shall deposit into, or cause the
deposit of the proceeds of any draw on the Series 2005-2 Letters of Credit and
the proceeds of any withdrawal from the Series 2005-2 Cash Collateral Account
to be deposited in, the Series 2005-2 Distribution Account.  If, after giving effect to the deposit into
the Series 2005-2 Distribution Account of the amount to be deposited in
accordance with Section 2.5(a) of this Series Supplement and the amounts
described in the preceding three sentences, the amount to be deposited in the
Series 2005-2 Distribution Account with respect to the Final Distribution Date
with respect to the Series 2005-2 Notes of any class is or will be less than
the Class A-1 Outstanding Principal Amount, the Class A-2 Outstanding Principal
Amount, the Class A-3 Outstanding Principal Amount, the Class A-4 Outstanding
Principal Amount or the Class A-5 Outstanding Principal Amount, as the case may
be, the Trustee shall make a demand on the Surety Bond by 12:00 p.m. (New York
City time) on the second Business Day preceding such Final Distribution Date in
an amount equal to such insufficiency in accordance with the terms thereof and
shall cause the proceeds thereof to be deposited in the Series 2005-2
Distribution Account.  The Trustee shall
apply the proceeds of a draw on the Surety Bond pursuant to this Section
2.5(b) to the mandatory redemption of the Series 2005-2 Notes on the Final
Distribution Date therefor and not for any other purpose.  If for any reason such proceeds of a draw on
the Surety Bond are not used to make such redemption and remain with the
Trustee, the Trustee shall promptly return any such proceeds of a draw on the
Surety Bond that remain with the Trustee to the Surety Provider.  The entire principal amount of all
Outstanding Class A-1 Notes shall be due and payable on the Class A-1/A-2 Final
Distribution Date.  The entire principal
amount of all Outstanding Class A-2 Notes shall be due and payable on the Class
A-1/A-2 Final Distribution Date.  The
entire principal amount of all Outstanding Class A-3 Notes shall be due and
payable on the Class A-3 Final Distribution Date. The entire

 

64

 

principal amount of all Outstanding Class A-4 Notes
shall be due and payable on the Class A-4/A-5 Final Distribution Date.

The entire principal amount of all Outstanding Class A-5 Notes shall be due and
payable on the Class A-4/A-5 Final Distribution Date.

(c)   Principal Deficit Amount.

(i)            If, on any Determination Date, the
Servicer determines that the Principal Deficit Amount with respect to the next
succeeding Distribution Date will be greater than zero, prior to 10:00 a.m.
(New York City time) on the second Business Day prior to such Distribution
Date, the Servicer shall instruct the Trustee in writing to withdraw from the
Series 2005-2 Reserve Account and deposit in the Series 2005-2 Distribution
Account on the following Distribution Date an amount equal to the lesser of (x)
the Series 2005-2 Available Reserve Account Amount and (y) the Principal
Deficit Amount.  The Trustee shall
withdraw such amount from the Series 2005-2 Reserve Account and deposit such
amount in the Series 2005-2 Distribution Account on or prior to such
Distribution Date for allocation to each Class of Series 2005-2 Notes in
accordance with Section 2.5(d) of this Series Supplement.  If the Series 2005-2 Available Reserve
Account Amount is less than the Principal Deficit Amount and there are any
Series 2005-2 Letters of Credit on such date, prior to 10:00 a.m. (New York
City time) on the second Business Day prior to such Distribution Date, the
Servicer shall instruct the Trustee in writing to deliver a Demand Notice to
Vanguard demanding payment of an amount equal to the least of (A) the
outstanding principal amount of the Series 2005-2 Demand Note, (B) the
remaining Principal Deficit Amount (assuming the application of the amount to
be removed from the Series 2005-2 Reserve Account and applied to reduce the
Series 2005-2 Adjusted Invested Amount on the next Distribution Date) and (C)
the Series 2005-2 Letter of Credit Liquidity Amount.  The Trustee shall, prior to 12:00 noon (New
York City time) on the second Business Day preceding such Distribution Date,
deliver such Demand Notice to Vanguard; provided, however, that
if an Event of Bankruptcy (or the occurrence of an event described in clause
(a) of the definition thereof, without the lapse of a period of 60
consecutive days) with respect to Vanguard shall have occurred and be
continuing, the Trustee shall not be required to deliver such Demand Notice to
Vanguard.  The Trustee shall cause the proceeds
of such demand on the Series 2005-2 Demand Note to be deposited into the Series
2005-2 Distribution Account for allocation to each Class of the Series 2005-2
Notes in accordance with Section 2.5(d) of this Series Supplement.  In the event that either (x) on or prior to
10:00 a.m. (New York City time) on the Business Day prior to such Distribution
Date, Vanguard shall have failed to pay to the Trustee or deposit in the Series
2005-2 Distribution Account the amount specified in such Demand Notice in whole
or in part or (y) due to the occurrence of an Event of Bankruptcy (or the
occurrence of an event described in clause (a) of the definition
thereof, without the lapse of a period of 60 consecutive days) with respect to
Vanguard, the Trustee shall not have delivered such Demand Notice to Vanguard
on the second Business Day preceding such Distribution Date, the Trustee shall
draw on the Series 2005-2 Letters of Credit an amount

 

65

 

equal to the lesser of (A)
Series 2005-2 Letter of Credit Amount and (B) the amount that Vanguard failed
to pay under the Series 2005-2 Demand Note (or the amount that the Trustee
failed to demand for payment thereunder) by presenting to each Series 2005-2
Letter of Credit Provider a draft accompanied by a Certificate of Unpaid Demand
Note Demand; provided, however, that if the Series 2005-2 Cash
Collateral Account has been established and funded, the Trustee shall withdraw
from the Series 2005-2 Cash Collateral Account and deposit in the Series 2005-2
Distribution Account an amount equal to the lesser of (x) the Series 2005-2
Cash Collateral Percentage on such Business Day of the amount that Vanguard
failed to pay under the Series 2005-2 Demand Note (or the amount that the
Trustee failed to demand for payment thereunder) and (y) the Series 2005-2
Available Cash Collateral Account Amount on such Business Day and draw an
amount equal to the remainder of the amount that Vanguard failed to pay under
the Series 2005-2 Demand Note (or, the amount that the Trustee failed to demand
for payment thereunder) on the Series 2005-2 Letters of Credit.  The Trustee shall deposit into, or cause the
deposit of the proceeds of any draw on the Series 2005-2 Letters of Credit and
the proceeds of any withdrawal from the Series 2005-2 Cash Collateral Account
to be deposited in, the Series 2005-2 Distribution Account for allocation to
each Class of the Series 2005-2 Notes in accordance with Section 2.5(d)
of this Series Supplement.

(ii)           If, after giving effect to the
deposits into the Series 2005-2 Distribution Account of the amounts to be
deposited in accordance with clause (i) above, a Principal Deficit
Amount remains, the Trustee shall make a demand on the Surety Bond by 12:00
noon (New York City time) on the second Business Day preceding such
Distribution Date in an amount equal to the Insured Principal Deficit Amount,
if any, in accordance with the terms thereof and shall cause the proceeds
thereof to be deposited in the Series 2005-2 Distribution Account for
allocation to each Class of the Series 2005-2 Notes in accordance with Section
2.5(d) of this Series Supplement.

(d)   Principal Allocations.  On each Distribution Date occurring on or
after the date a withdrawal is made from the Series 2005-2 Collection Account
and, if applicable, the Series 2005-2 Excess Collection Account pursuant to Section
2.5(a) of this Series Supplement or amounts are deposited in the Series
2005-2 Distribution Account pursuant to Section 2.2(g), 2.5(b) or
2.5(c) of this Series Supplement, the Paying Agent shall, in accordance
with Section 6.1 of the Base Indenture, (x) pay to each Class A-1 Noteholder or
Class A-2 Noteholder, as applicable, on a pro  rata basis from the
Series 2005-2 Distribution Account the amount deposited therein pursuant to Section
2.2(g), 2.5(a), 2.5(b) or 2.5(c) of this Series
Supplement, to the extent necessary to pay the Class A-1/A-2 Controlled
Amortization Amount during the Class A-1/A-2 Controlled Amortization Period or
to the extent necessary to pay the Class A-1 Invested Amount and the Class A-2
Invested Amount during the Series 2005-2 Rapid Amortization Period or on the
Class A-1/A-2 Final Distribution Date, (y) pay to each Class A-3 Noteholder
from the Series 2005-2 Distribution Account the amount deposited therein
pursuant to Section

 

66

 

2.2(g),
2.5(a), 2.5(b) or 2.5(c) of this Series Supplement, to the
extent necessary to pay the Class A-3 Controlled Amortization Amount during the
Class A-3 Controlled Amortization Period or to the extent necessary to pay the
Class A-3 Invested Amount during the Series 2005-2 Rapid Amortization Period or
on the Class A-3 Final Distribution Date and (z) pay to each Class A-4
Noteholder or Class A-5 Noteholder, as applicable, on a pro  rata
basis from the Series 2005-2 Distribution Account the amount deposited therein
pursuant to Section 2.2(g), 2.5(a), 2.5(b) or 2.5(c)
of this Series Supplement, to the extent necessary to pay the Class A-4/A-5
Controlled Amortization Amount during the Class A-4/A-5 Controlled Amortization
Period or to the extent necessary to pay the Class A-4 Invested Amount and the
Class A-5 Invested Amount during the Series 2005-2 Rapid Amortization Period or
on the Class A-4/A-5 Final Distribution Date.

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

If the Servicer fails to give
notice or instructions to make any payment required to be given by the
Servicer, at the time specified in the Indenture or any other Related Document
(including applicable grace periods), from the Series 2005-2 Collection
Account, the Series 2005-2 Excess Collection Account, the Series 2005-2 Accrued
Interest Account or the Series 2005-2 Distribution Account (collectively, the “Series
2005-2 Accounts”) or deposit into a Series 2005-2 Account from any other
Series 2005-2 Account, then the Surety Provider (for so long as no Surety
Default shall have occurred and be continuing) may provide those instructions
to the Trustee for making such payment from or deposit into a Series 2005-2
Account.  If the Servicer and the Surety
Provider each have failed to provide such instructions or a Surety Default has
occurred and is continuing, then the Trustee, to the extent that it has all of
the necessary information to make such payment or deposit, shall make such
payment or deposit without such notice or instruction from the Servicer or the
Surety Provider, provided that the Servicer, upon request of the
Trustee, promptly provides the Trustee with all information necessary to allow
the Trustee to make such a payment or deposit. 
When any payment or deposit hereunder or under any other Related
Document is required to be made by the Trustee at or prior to a specified time,
the Servicer shall deliver any applicable written instructions with respect
thereto reasonably in advance of such specified time.

Section 2.7             Series
2005-2 Reserve Account.

(a)   Establishment of Series 2005-2 Reserve
Account.  ARG shall establish and
maintain, or cause to be established and maintained, in the name of the Trustee
for the benefit of the Series 2005-2 Noteholders, each Series 2005-2 Interest
Rate Hedge Provider and the Surety Provider, an account (the “Series 2005-2
Reserve Account”), bearing a designation clearly indicating that the funds
deposited therein are held for the benefit of the Series 2005-2 Noteholders,
each Series 2005-2 Interest Rate Hedge Provider and the Surety Provider.  The Series 2005-2 Reserve Account shall be

 

67

 

maintained (i) with a Qualified Institution or (ii) as
a segregated trust account with the corporate trust department of a depository
institution or trust company having corporate trust powers and acting as
trustee for funds deposited in the Series 2005-2 Reserve Account; provided
that, if such account is maintained with a Qualified Institution and at any
time such institution fails to satisfy the definition of Qualified Institution,
then ARG shall, within 10 Business Days of such event, establish a new Series
2005-2 Reserve Account with a new Qualified Institution or a new segregated
trust account with the corporate trust department of a depository institution
or trust company having corporate trust powers and acting as trustee for funds
deposited in the Series 2005-2 Reserve Account. 
If a new Series 2005-2 Reserve Account is established, ARG shall
instruct the Trustee in writing to transfer all cash and investments from the
non-qualifying Series 2005-2 Reserve Account into the new Series 2005-2 Reserve
Account.  Initially, the Series 2005-2
Reserve Account will be established with The Bank of New York.

(b)   Administration of the Series 2005-2
Reserve Account.  ARG may instruct
(by standing instructions or otherwise) the institution maintaining the Series
2005-2 Reserve Account to invest funds on deposit in the Series 2005-2 Reserve
Account from time to time in Permitted Investments; provided, however,
that any such investment shall mature not later than the Business Day prior to
the first Distribution Date following the date on which such funds were
received, unless any Permitted Investment held in the Series 2005-2 Reserve
Account is held with the Paying Agent, then such investment may mature on such
Distribution Date so long as such funds shall be available for withdrawal on or
prior to such Distribution Date.  All
such Permitted Investments will be credited to the Series 2005-2 Reserve
Account and any such Permitted Investments that constitute (i) Physical
Property (and that is not either a United States Security Entitlement or a
Security Entitlement) or Uncertificated Securities (and not United States
Security Entitlements) shall be delivered to the Trustee in accordance with the
definition of “Delivery” and shall be held by the Trustee pending maturity or
disposition and (ii) United States Security Entitlements or Security
Entitlements shall be Controlled by the Trustee pending maturity or
disposition.  The Trustee shall, at the
expense of ARG, take such action as is requested of it to maintain the Trustee’s
security interest in the Permitted Investments credited to the Series 2005-2
Reserve Account.  ARG shall not direct
the Trustee to dispose of (or permit the disposal of) any Permitted Investments
prior to the maturity thereof to the extent such disposal would result in a
loss of the purchase price of such Permitted Investments.  In the absence of written investment
instructions hereunder, funds on deposit in the Series 2005-2 Reserve Account
shall remain uninvested.

(c)   Earnings from Series 2005-2 Reserve Account.  All interest and earnings (net of losses and
investment expenses) paid on funds on deposit in the Series 2005-2 Reserve
Account shall be deemed to be on deposit therein and available for
distribution.

(d)   Series 2005-2 Reserve Account Constitutes
Additional Collateral for Series 2005-2 Notes.  In order to secure and provide for
the payment of the ARG Obligations with respect to the Series 2005-2 Notes, ARG
hereby grants a security

 

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interest in and assigns, pledges, grants, transfers
and sets over to the Trustee, for the benefit of the Series 2005-2 Noteholders,
each Series 2005-2 Interest Rate Hedge Provider and the Surety Provider, all of
ARG’s right, title and interest in and to the following (whether now or
hereafter existing or acquired):  (i) the
Series 2005-2 Reserve Account, including any security entitlement thereto; (ii)
all funds on deposit therein from time to time; (iii) all certificates and
instruments, if any, representing or evidencing any or all of the Series 2005-2
Reserve Account or the funds on deposit therein from time to time; (iv) all
investments made at any time and from time to time with monies in the Series
2005-2 Reserve Account, whether constituting securities, instruments, general
intangibles, investment property, financial assets or other property; (v) all
interest, dividends, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of or in exchange for
the Series 2005-2 Reserve Account, the funds on deposit therein from time to
time or the investments made with such funds; and (vi) all proceeds of any and
all of the foregoing, including, without limitation, cash (the items in the
foregoing clauses (i) through (vi) are referred to, collectively,
as the “Series 2005-2 Reserve Account Collateral”).  The Trustee, for the benefit of the Series
2005-2 Noteholders, each Series 2005-2 Interest Rate Hedge Provider and the
Surety Provider, shall possess all right, title and interest in all funds on
deposit from time to time in the Series 2005-2 Reserve Account and in all
proceeds thereof, and shall be the only person authorized to originate
entitlement orders in respect of the Series 2005-2 Reserve Account.  The Series 2005-2 Reserve Account Collateral
shall be under the sole dominion and control of the Trustee for the benefit of
the Series 2005-2 Noteholders, each Series 2005-2 Interest Rate Hedge Provider
and the Surety Provider.

(e)   Series 2005-2 Reserve Account Surplus.  In the event that the Series 2005-2 Reserve
Account Surplus on any date is greater than zero, the Trustee, acting in
accordance with the written instructions of the Servicer, shall withdraw such
excess amount from the Series 2005-2 Reserve Account and shall pay such excess
amount to ARG.

(f)    Unpaid Fee Amounts.  If, on any Distribution Date after the
occurrence and during the continuance of a Series 2005-2 ARG Liquidation Event,
there are any unpaid fees and/or expenses due and owing to the Trustee
hereunder (the “Trustee Unpaid Fee Amount”), and/or the Master
Collateral Agent has demanded payment by the Trustee of unpaid fees and/or
expenses due and owing to the Master Collateral Agent (the “MCA Unpaid Fee
Amount”), and/or the Disposition Agent has demanded payment by the Trustee
of unpaid fees and/or expenses due and owing to the Disposition Agent (the “Disposition
Agent Unpaid Fee Amount”, and together with the Trustee Unpaid Fee Amount
and the MCA Unpaid Fee Amount, the “Unpaid Fee Amounts”) (after giving
effect to all payments in respect thereof required to be made on such
Distribution Date pursuant to any of the Related Documents), the Trustee shall
withdraw from the Series 2005-2 Reserve Account an amount equal to the least of
(a) the excess of (x) 1.1% of the Series 2005-2 Required Aggregate Asset
Amount, as of the date of the occurrence of such Series 2005-2 ARG Liquidation
Event, over (y) the aggregate of the amounts previously withdrawn under this Section
2.7(f) of this Series Supplement

 

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in respect of fees due and owing to the Trustee, the
Master Collateral Agent and the Disposition Agent, (b) the Series 2005-2
Percentage on such Distribution Date of the amount of such fees and/or expenses
and (c) the Series 2005-2 Available Reserve Account Amount on such Distribution
Date, and pay such amount ratably to the Trustee, the Master Collateral Agent
and the Disposition Agent on the basis of the Trustee Unpaid Fee Amount, the
MCA Unpaid Fee Amount and the Disposition Agent Unpaid Fee Amount as of such
Distribution Date.

(g)   Termination of Series 2005-2 Reserve
Account.  Upon the termination of
this Series Supplement in accordance with its terms, the Trustee, acting in
accordance with the written instructions of the Servicer, after the prior
payment of all amounts owing to the Series 2005-2 Noteholders and to the Surety
Provider and payable from the Series 2005-2 Reserve Account as provided herein,
shall withdraw from the Series 2005-2 Reserve Account all amounts on deposit
therein for payment to ARG.

Section 2.8             Series
2005-2 Letters of Credit and Series 2005-2 Cash Collateral Account.

(a)   Series 2005-2 Letters of Credit and Series
2005-2 Cash Collateral Account Constitutes Additional Collateral for Series
2005-2 Notes.  In order to secure and
provide for the payment of the ARG Obligations with respect to the Series
2005-2 Notes, ARG hereby grants a security interest in and assigns, pledges,
grants, transfers and sets over to the Trustee, for the benefit of the Series 2005-2
Noteholders, each Series 2005-2 Interest Rate Hedge Provider and the Surety
Provider, all of ARG’s right, title and interest in and to the following
(whether now or hereafter existing or acquired):  (i) the Series 2005-2 Cash Collateral
Account, including any security entitlement thereto; (ii) all funds on deposit
in the Series 2005-2 Cash Collateral Account from time to time; (iii) all
certificates and instruments, if any, representing or evidencing any or all of
the Series 2005-2 Cash Collateral 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 2005-2 Cash Collateral 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 2005-2 Cash Collateral Account, the
funds on deposit therein from time to time or the investments made with such
funds; and (vi) all proceeds of any and all of the foregoing, including,
without limitation, cash (the items in the foregoing clauses (ii)
through (vi) are referred to, collectively, as the “Series 2005-2
Cash Collateral Account Collateral”). 
The Trustee shall, for the benefit of the Series 2005-2 Noteholders,
each Series 2005-2 Interest Rate Hedge Provider and the Surety Provider,
possess all right, title and interest in all funds on deposit from time to time
in the Series 2005-2 Cash Collateral Account and in all proceeds thereof, and
shall be the only person authorized to originate entitlement orders in respect
of the Series 2005-2 Cash Collateral Account. 
The Series 2005-2 Cash Collateral Account Collateral shall be under the
sole dominion and control of the Trustee

 

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for the benefit of the Series 2005-2 Noteholders, each
Series 2005-2 Interest Rate Hedge Provider and the Surety Provider.

(b)   Series 2005-2 Letter of Credit Expiration
Date.  Prior to the date which is ten
(10) days prior to the then scheduled Series 2005-2 Letter of Credit Expiration
Date with respect to any Series 2005-2 Letter of Credit, the Servicer shall (i)
determine whether, excluding the amount available to be drawn under such Series
2005-2 Letter of Credit but taking into account each substitute Series 2005-2
Letter of Credit which has been obtained from a Series 2005-2 Eligible Letter
of Credit Provider and is in full force and effect on such date there would be
any Series 2005-2 Enhancement Deficiency or any Series 2005-2 Liquidity
Deficiency, (ii) notify the Trustee in writing no later than two Business Days
prior to such Series 2005-2 Letter of Credit Expiration Date of such
determination and (iii) direct the Trustee to draw on such expiring Series
2005-2 Letter of Credit in an amount equal to the lesser of (x) the greater of
(1) the excess, if any, of the Series 2005-2 Required Enhancement Amount over
the Series 2005-2 Enhancement Amount, excluding the available amount under such
expiring Series 2005-2 Letter of Credit, on such date and (2) the excess, if
any, of the Series 2005-2 Required Liquidity Amount over the Series 2005-2
Liquidity Amount, excluding the available amount under such expiring Series
2005-2 Letter of Credit, on such date and (y) the amount available to be drawn
on such expiring Series 2005-2 Letter of Credit, on such date.  Upon receipt of such notice by the Trustee on
or prior to 10:00 a.m. (New York City time) on any Business Day, the Trustee
shall, by 12:00 p.m. (New York City time) on such Business Day (or, in the case
of any notice given to the Trustee after 10:00 a.m. (New York City time), by
12:00 p.m. (New York City time) on the next following Business Day), draw the
lesser of the amounts set forth in clauses (x) and (y) above on
such Series 2005-2 Letter of Credit by presenting a draft accompanied by a
Certificate of Termination Demand and shall cause the Termination Disbursement
to be deposited in the Series 2005-2 Cash Collateral Account.

If the Trustee does not receive
the notice from the Servicer described in the first paragraph of this Section
2.8(b) on or prior to the date that is two Business Days prior to each
Series 2005-2 Letter of Credit Expiration Date, the Trustee shall, by 12:00
p.m. (New York City time) on such Business Day draw the full amount of such
Series 2005-2 Letter of Credit by presenting a draft accompanied by a
Certificate of Termination Demand and shall cause the Termination Disbursement
to be deposited in the Series 2005-2 Cash Collateral Account.

(c)   Series 2005-2 Letter of Credit Providers.  The Servicer shall notify the Trustee and the
Surety Provider in writing within one Business Day of becoming aware that the
long-term debt credit rating of any Series 2005-2 Letter of Credit Provider has
fallen below “A+” as determined by Standard & Poor’s or “A1” as determined
by Moody’s or that the short-term debt rating of any Series 2005-2 Letter of
Credit Provider has fallen below P-1.  At
such time the Servicer shall also notify the Trustee of (i) the greater of (A)
the excess, if any, of the Series 2005-2 Required Enhancement Amount over the
Series 2005-2 Enhancement Amount, excluding the available amount under the

 

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Series 2005-2 Letter of Credit issued by such Series
2005-2 Letter of Credit Provider, on such date and (B) the excess, if any, of
the Series 2005-2 Required Liquidity Amount over the Series 2005-2 Liquidity
Amount, excluding the available amount under such Series 2005-2 Letter of
Credit, on such date, and (ii) the amount available to be drawn on such Series
2005-2 Letter of Credit on such date. 
Upon receipt of such notice by the Trustee on or prior to 10:00 a.m.
(New York City time) on any Business Day, the Trustee shall, by 12:00 p.m. (New
York City time) on such Business Day (or, in the case of any notice given to
the Trustee after 10:00 a.m. (New York City time), by 12:00 p.m. (New York City
time) on the next following Business Day), draw on such Series 2005-2 Letter of
Credit in an amount equal to the lesser of the amount in clause (i) or clause
(ii) of the immediately preceding sentence on such Business Day by
presenting a draft accompanied by a Certificate of Termination Demand and shall
cause the Termination Disbursement to be deposited in the Series 2005-2 Cash
Collateral Account.

(d)   Termination Date Demands on the Series
2005-2 Letters of Credit.  Prior to
10:00 a.m. (New York City time) on the second Business Day prior to the Series
2005-2 Letter of Credit Termination Date, the Servicer shall determine the
Series 2005-2 Demand Note Payment Amount, if any, as of the Series 2005-2
Letter of Credit Termination Date and, if the Series 2005-2 Demand Note Payment
Amount is greater than zero, instruct the Trustee in writing to draw on the
Series 2005-2 Letters of Credit.  Upon
receipt of any such notice by the Trustee on or prior to 11:00 a.m. (New York
City time) on a Business Day, the Trustee shall, by 12:00 noon (New York City
time) on such Business Day draw an amount equal to the lesser of (i) the Series
2005-2 Demand Note Payment Amount and (ii) the Series 2005-2 Letter of Credit
Liquidity Amount on the Series 2005-2 Letters of Credit by presenting to each
Series 2005-2 Letter of Credit Provider a draft accompanied by a Certificate of
Termination Date Demand and shall cause the Termination Date Disbursement to be
deposited in the Series 2005-2 Cash Collateral Account; provided, however
that if the Series 2005-2 Cash Collateral Account has been established and
funded, the Trustee shall draw an amount equal to the product of 100% minus
the Series 2005-2 Cash Collateral Percentage on such Business Day on the Series
2005-2 Letters of Credit.

(e)   Draws on the Series 2005-2 Letters of
Credit.  If there is more than one
Series 2005-2 Letter of Credit on the date of any draw on the Series 2005-2
Letters of Credit pursuant to the terms of this Series Supplement, the Servicer
shall instruct the Trustee, in writing, to draw on each Series 2005-2 Letter of
Credit in an amount equal to the Pro Rata Share of the Series 2005-2 Letter of
Credit Provider issuing such Series 2005-2 Letter of Credit of the amount of
such draw on the Series 2005-2 Letters of Credit.

(f)    Establishment of Series 2005-2 Cash
Collateral Account.  On or prior to
the date of any drawing under a Series 2005-2 Letter of Credit pursuant to Section
2.8(b), (c), (d) or (e) above, ARG shall establish and
maintain, or cause to be established and maintained, in the name of the Trustee
for the benefit of the Series 2005-2 Noteholders, each Series 2005-2 Interest
Rate Hedge Provider and the Surety Provider,

 

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an account (the “Series 2005-2 Cash Collateral Account”),
bearing a designation clearly indicating that the funds deposited therein are
held for the benefit of the Series 2005-2 Noteholders, each Series 2005-2
Interest Rate Hedge Provider and the Surety Provider.  The Series 2005-2 Cash Collateral Account
shall be maintained (i) with a Qualified Institution, or (ii) as a segregated
trust account with the corporate trust department of a depository institution
or trust company having corporate trust powers and acting as trustee for funds
deposited in the Series 2005-2 Cash Collateral Account; provided that,
if such account is maintained with a Qualified Institution and at any time such
institution fails to satisfy the definition of Qualified Institution, then ARG
shall, within 10 Business Days of such event, establish a new Series 2005-2
Cash Collateral Account with a new Qualified Institution or a new segregated
trust account with the corporate trust department of a depository institution
or trust company having corporate trust powers and acting as trustee for funds
deposited in the Series 2005-2 Cash Collateral Account.  If a new Series 2005-2 Cash Collateral
Account is established, ARG shall instruct the Trustee in writing to transfer
all cash and investments from the non-qualifying Series 2005-2 Cash Collateral
Account into the new Series 2005-2 Cash Collateral Account.

(g)   Administration of the Series 2005-2 Cash
Collateral Account.  ARG may instruct
(by standing instructions or otherwise) the institution maintaining the Series
2005-2 Cash Collateral Account to invest funds on deposit in the Series 2005-2
Cash Collateral Account from time to time in Permitted Investments; provided,
however, that any such investment shall mature not later than the
Business Day prior to the first Distribution Date with respect to the Series
2005-2 Notes of any class following the date on which such funds were received,
unless any Permitted Investment held in the Series 2005-2 Cash Collateral
Account is held with the Paying Agent, in which case such investment may mature
on such Distribution Date so long as such funds shall be available for
withdrawal on or prior to such Distribution Date.  All such Permitted Investments will be
credited to the Series 2005-2 Cash Collateral Account and any such Permitted
Investments that constitute (i) Physical Property (and that is not either a
United States Security Entitlement or a Security Entitlement) or Uncertificated
Securities (and not United States Security Entitlements) shall be delivered to
the Trustee in accordance with the definition of “Delivery” and shall be held
by the Trustee pending maturity or disposition and (ii) United States Security
Entitlements or Security Entitlements shall be Controlled by the Trustee
pending maturity or disposition.  The
Trustee shall, at the expense of ARG, take such action as is requested of it to
maintain the Trustee’s security interest in the Permitted Investments credited
to the Series 2005-2 Cash Collateral Account ARG shall not direct the Trustee
to dispose of (or permit the disposal of) any Permitted Investments prior to
the maturity thereof to the extent such disposal would result in a loss of the
purchase price of such Permitted Investments. 
In the absence of written investment instructions hereunder, funds on
deposit in the Series 2005-2 Cash Collateral Account shall remain uninvested.

(h)   Earnings from Series 2005-2 Cash
Collateral Account.  All interest and
earnings (net of losses and investment expenses) paid on funds on deposit in
the 

 

73

 

Series 2005-2 Cash Collateral Account shall be deemed
to be on deposit therein and available for distribution.

(i)    Series 2005-2 Cash Collateral Account
Surplus.  In the event that the
Series 2005-2 Cash Collateral Account Surplus on any Distribution Date (or,
after the Series 2005-2 Letter of Credit Termination Date, on any date) is
greater than zero, the Trustee, acting in accordance with the written
instructions of the Servicer, shall withdraw from the Series 2005-2 Cash
Collateral Account an amount equal to the Series 2005-2 Cash Collateral Account
Surplus and shall pay such amount:  first,
pro  rata to the Series 2005-2 Letter of Credit Providers, for
application in accordance with the provisions of the related Series 2005-2
Reimbursement Agreement, and, second, to ARG any remaining amount.

(j)    Post-Series 2005-2 Letter of Credit
Termination Date Withdrawals from the Series 2005-2 Cash Collateral Account.  If the Surety Provider notifies the Trustee
in writing that the Surety Provider shall have paid a Preference Amount (as
defined in the Surety Bond) under the Surety Bond, subject to the satisfaction
of the conditions set forth in the next succeeding sentence, the Trustee shall
withdraw from the Series 2005-2 Cash Collateral Account and pay to the Surety Provider
an amount equal to the lesser of (i) the Series 2005-2 Available Cash
Collateral Account Amount on such date and (ii) such Preference Amount.  Prior to any withdrawal from the Series
2005-2 Cash Collateral Account pursuant to this Section 2.8(j), the
Trustee shall have received a certified copy of the order requiring the return
of such Preference Amount.

(k)   Termination of Series 2005-2 Cash
Collateral Account.  Upon the
termination of this Series Supplement in accordance with its terms, the
Trustee, acting in accordance with the written instructions of the Servicer,
after the prior payment of all amounts owing to the Series 2005-2 Noteholders
and to the Surety Provider and payable from the Series 2005-2 Cash Collateral
Account as provided herein, shall withdraw from the Series 2005-2 Cash
Collateral Account all amounts on deposit therein (to the extent not withdrawn
pursuant to Section 2.8(i) above) and shall pay such amounts:   first, pro rata to the Series
2005-2 Letter of Credit Providers, for application in accordance with the
provisions of the related Series 2005-2 Reimbursement Agreement, and second,
to ARG any remaining amount.

Section 2.9             Series
2005-2 Distribution Account.

(a)   Establishment of Series 2005-2
Distribution Account.  The Trustee shall
establish and maintain, or cause to be established and maintained, in the name
of the Trustee for the benefit of the Series 2005-2 Noteholders, each Series
2005-2 Interest Rate Hedge Provider and the Surety Provider, an account (the “Series
2005-2 Distribution Account”), bearing a designation clearly indicating
that the funds deposited therein are held for the benefit of the Series 2005-2
Noteholders, each Series 2005-2 Interest Rate Hedge Provider and the Surety
Provider.  The Series 2005-2 Distribution
Account shall be maintained (i) with a Qualified Institution or (ii) as a
segregated trust account with the

 

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corporate trust department of a depository institution
or trust company having corporate trust powers and acting as trustee for funds
deposited in the Series 2005-2 Distribution Account; provided that, if
such account is maintained with a Qualified Institution and at any time such
institution fails to satisfy the definition of Qualified Institution, then ARG
shall, within 10 Business Days of such event, establish a new Series 2005-2
Distribution Account with a new Qualified Institution or a new segregated trust
account with the corporate trust department of a depository institution or
trust company having corporate trust powers and acting as trustee for funds
deposited in the Series 2005-2 Distribution Account.  If a new Series 2005-2 Distribution Account
is established, ARG shall instruct the Trustee in writing to transfer all cash
and investments from the non-qualifying Series 2005-2 Distribution Account into
the new Series 2005-2 Distribution Account. 
Initially, the Series 2005-2 Distribution Account will be established
with The Bank of New York.

(b)   Administration of the Series 2005-2
Distribution Account.  ARG may
instruct (by standing instructions or otherwise) the institution maintaining
the Series 2005-2 Distribution Account to invest funds on deposit in the Series
2005-2 Distribution Account from time to time in Permitted Investments; provided,
however, that any such investment shall mature not later than the
Business Day prior to the first Distribution Date with respect to the Series
2005-2 Notes of any class following the date on which such funds were received,
unless any Permitted Investment held in the Series 2005-2 Distribution Account
is held with the Paying Agent, in which case such investment may mature on such
Distribution Date so long as such funds shall be available for withdrawal on or
prior to such Distribution Date.  All
such Permitted Investments will be credited to the Series 2005-2 Distribution
Account and any such Permitted Investments that constitute (i) Physical
Property (and that is not either a United States Security Entitlement or a
Security Entitlement) or Uncertificated Securities (and not United States
Security Entitlements) shall be delivered to the Trustee in accordance with the
definition of “Delivery” and shall be held by the Trustee pending maturity or
disposition and (ii) United States Security Entitlements or Security
Entitlements shall be Controlled by the Trustee pending maturity or
disposition.  The Trustee shall, at the
expense of ARG, take such action as is requested of it to maintain the Trustee’s
security interest in the Permitted Investments credited to the Series 2005-2
Distribution Account.  ARG shall not
direct the Trustee to dispose of (or permit the disposal of) any Permitted
Investments prior to the maturity thereof to the extent such disposal would
result in a loss of purchase price of such Permitted Investments.  In the absence of written investment
instructions hereunder, funds on deposit in the Series 2005-2 Distribution
Account shall remain uninvested.

(c)   Earnings from Series 2005-2 Distribution
Account.  On each Distribution Date,
all interest and earnings (net of losses and investment expenses) paid on funds
on deposit in the Series 2005-2 Distribution Account shall be distributed to
ARG.

(d)   Series 2005-2 Distribution Account
Constitutes Additional Collateral for Series 2005-2 Notes.  In order to secure and provide for the
payment of the ARG Obligations with respect to the Series 2005-2 Notes, ARG
hereby grants a security

 

75

 

interest in and assigns, pledges, grants, transfers
and sets over to the Trustee, for the benefit of the Series 2005-2 Noteholders,
each Series 2005-2 Interest Rate Hedge Provider and the Surety Provider, all of
ARG’s right, title and interest in and to the following (whether now or
hereafter existing or acquired):   (i)
the Series 2005-2 Distribution Account, including any security entitlement
thereto; (ii) all funds on deposit in the Series 2005-2 Distribution Account
from time to time; (iii) all certificates and instruments, if any, representing
or evidencing any or all of the Series 2005-2 Distribution Account or the funds
on deposit therein from time to time; (iv) all investments made at any time and
from time to time with monies in the Series 2005-2 Distribution Account,
whether constituting securities, instruments, general intangibles, investment
property, financial assets or other property; (v) all interest, dividends,
cash, instruments and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for the Series 2005-2 Distribution
Account, the funds on deposit therein from time to time or the investments made
with such funds; and (vi) all proceeds of any and all of the foregoing,
including, without limitation, cash (the items in the foregoing clauses (i)
through (vi) are referred to, collectively, as the “Series 2005-2
Distribution Account Collateral”). 
The Trustee shall, for the benefit of the Series 2005-2 Noteholders,
each Series 2005-2 Interest Rate Hedge Provider and the Surety Provider,
possess all right, title and interest in all funds on deposit from time to time
in the Series 2005-2 Distribution Account and in all
proceeds thereof, and shall be the only person authorized to originate
entitlement orders in respect of the Series 2005-2 Distribution Account.  The Series 2005-2 Distribution Account shall
be under the sole dominion and control of the Trustee for the benefit of the
Series 2005-2 Noteholders, each Series 2005-2 Interest Rate Hedge Provider and
the Surety Provider.

Section 2.10           Series
2005-2 Demand Note and each Series 2005-2 Interest Rate Hedge Constitutes
Additional Collateral for Series 2005-2 Notes.

In order to secure and
provide for the payment of the ARG Obligations with respect to the Series
2005-2 Notes, ARG hereby grants a security interest in and assigns, pledges,
grants, transfers and sets over to the Trustee, for the benefit of the Series
2005-2 Noteholders,  each Series 2005-2
Interest Rate Hedge Provider and the Surety Provider, all of ARG’s right, title
and interest in and to the following (whether now or hereafter existing or
acquired): (i) the Series 2005-2 Demand Note; (ii) all certificates and
instruments, if any, representing or evidencing the Series 2005-2 Demand Note;
(iii) each Series 2005-2 Interest Rate Hedge or any replacement thereof; and
(iv) all proceeds of any and all of the foregoing, including, without
limitation, cash.  On the Series 2005-2
Closing Date, ARG shall deliver to the Trustee, for the benefit of the Series
2005-2 Noteholders, each Series 2005-2 Interest Rate Hedge Provider and the
Surety Provider, the Series 2005-2 Demand Note, endorsed in blank, and an
executed copy of each Series 2005-2 Interest Rate Hedge.  The Trustee, for the benefit of the Series
2005-2 Noteholders, each Series 2005-2 Interest Rate Hedge Provider and the
Surety Provider (but solely in accordance with the provisions of this Series
Supplement), shall be the only Person authorized to make a demand for payment
on the Series 2005-2 Demand Note.

 

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Section 2.11           Series
2005-2 Interest Rate Hedges.

(a)   On the Series 2005-2 Closing Date, ARG shall
acquire each Series 2005-2 Interest Rate Hedge from a Qualified Interest Rate
Hedge Provider.

(b)   If, at any time, a Series 2005-2 Interest
Rate Hedge Provider is not a Qualified Interest Rate Hedge Provider, then ARG
will cause the Series 2005-2 Interest Rate Hedge Provider within 30 days
following such occurrence and at the Series 2005-2 Interest Rate Hedge Provider’s
expense, to do one of the following (the choice of such action to be determined
by the Series 2005-2 Interest Rate Hedge Provider) (i) obtain a replacement
interest rate hedge on the same terms as such Series 2005-2 Interest Rate Hedge
(or with such modifications as are acceptable to the Surety Provider and the
Rating Agencies) from a Qualified Interest Rate Hedge Provider, in the form of Exhibit
H of this Series Supplement, and simultaneously with such replacement ARG
shall terminate the Series 2005-2 Interest Rate Hedge being replaced, (ii)
obtain a guaranty from, or contingent agreement of, (in each case, in form and
substance acceptable to the Surety Provider) another person who qualifies as a
Qualified Interest Rate Hedge Provider to honor such Series 2005-2 Interest
Rate Hedge Provider’s obligations under its Series 2005-2 Interest Rate Hedge
in accordance with its terms and written confirmation from Standard & Poor’s
and Moody’s that the substantive terms of the guaranty agreement are sufficient
to maintain or restore the immediately prior Shadow Rating, (iii) post and
maintain collateral, upon terms acceptable to the Surety Provider, as required
in Exhibit H, or in such other manner and amount, upon terms acceptable
to the Surety Provider, that the Rating Agencies have confirmed in writing is
sufficient to maintain or restore the immediately prior Shadow Rating and such
collateral is held by the Trustee in a segregated account, or (iv) enter into
any arrangement satisfactory to Standard & Poor’s, Moody’s and the Surety
Provider, which is sufficient to maintain or restore the immediately prior
Shadow Rating; provided that no termination of the Series 2005-2
Interest Rate Hedge shall occur until ARG has entered into a replacement Series
2005-2 Interest Rate Hedge with a Qualified Interest Rate Hedge Provider or
entered into an arrangement satisfactory to Standard & Poor’s, Moody’s and
the Surety Provider, which is sufficient to maintain or restore the immediately
prior Shadow Rating.  If ARG is unable to
cause such Series 2005-2 Interest Rate Hedge Provider to take any of the
actions described in clauses (i), (ii), (iii) or (iv)
of the preceding sentence after making commercial reasonable efforts, ARG will
obtain a replacement Series 2005-2 Interest Rate Hedge at the expense of the
replaced Series 2005-2 Interest Rate Hedge Provider or, if the replaced Series
2005-2 Interest Rate Hedge Provider fails to make such payment, at the expense
of ARG (in which event, such amount will be considered Carrying Charges and
paid solely from Interest Collections available pursuant to Section 2.3(h)
of this Series Supplement).  ARG must
cause each Series 2005-2 Interest Rate Hedge to provide that if the Series
2005-2 Interest Rate Hedge Provider is required to take any of the actions
described in clauses (i), (ii), or (iv) above and such
action is not taken within 30 days, then the Series 2005-2 Interest Rate Hedge
Provider must, until a replacement Series 2005-2 Interest Rate Hedge is
executed and in effect, collateralize its obligations as required under clause
(iii) above.  Each Series 2005-2
Noteholder by its acceptance of 

 

77

 

a Series 2005-2 Note hereby acknowledges and agrees,
and directs the Trustee to acknowledge and agree, and the Trustee, at such
direction, hereby acknowledges and agrees, that any collateral posted by a
Series 2005-2 Interest Rate Hedge Provider pursuant to clause (iii)
above (A) is collateral solely for the obligations of such Series 2005-2
Interest Rate Hedge Provider under its Series 2005-2 Interest Rate Hedge, (B)
does not constitute collateral for the Series 2005-2 Notes (provided that in
order to secure and provide for the payment of the ARG Obligations with respect
to the Series 2005-2 Notes, ARG has pledged each Series 2005-2 Interest Rate
Hedge and its security interest in any collateral posted in connection
therewith as collateral for the Series 2005-2 Notes), and (C) will in no event
be available to satisfy any obligations of the Issuer hereunder or otherwise
unless and until such Series 2005-2 Interest Rate Hedge Provider defaults in
its obligations under its Series 2005-2 Interest Rate Hedge and such collateral
is applied in accordance with the terms of Exhibit H of this Series
Supplement to satisfy such defaulted obligations of such Series 2005-2 Interest
Rate Hedge Provider.

(c)   If the long-term senior unsecured debt rating
of a Series 2005-2 Interest Rate Hedge Provider is withdrawn or falls to “Baa1”
by Moody’s or “BBB+” by Standard & Poor’s, then the Surety Provider may
terminate such Series 2005-2 Interest Rate Hedge Provider’s Series 2005-2
Interest Rate Hedge, provided, however, that such Series 2005-2
Interest Rate Hedge shall not be terminated until either: (i) ARG or such
Series 2005-2 Interest Rate Hedge Provider, at the direction of the Surety
Provider and in each case at the expense of such Series 2005-2 Interest Rate
Hedge Provider, has obtained a replacement Series 2005-2 Interest Rate Hedge on
the same terms as the Series 2005-2 Interest Rate Hedge being terminated (or with
such modifications as are acceptable to the Surety Provider) from a Qualified
Interest Rate Hedge Provider or (ii) such Series 2005-2 Interest Rate Hedge
Provider at its expense has entered into an arrangement satisfactory to
Standard & Poor’s, Moody’s and the Surety Provider.

(d)   Reserved.

(e)   ARG shall require all Series 2005-2 Interest
Rate Hedge Proceeds to be paid, and the Trustee shall allocate all Series
2005-2 Interest Rate Hedge Proceeds, to the Series 2005-2 Accrued Interest
Account or the Series 2005-2 Collection Account.

(f)    ARG shall maintain a Class A-2 Interest Rate
Hedge until the Class A-2 Notes are paid in full.  ARG shall maintain a Class A-3 Interest Rate
Hedge until the Class A-3 Notes are paid in full.  ARG shall maintain a Class A-5 Interest Rate
Hedge until the Class A-5 Notes are paid in full.

Section 2.12           Series
2005-2 Interest Rate Hedge Collateral Account.

(a)   Establishment of Series 2005-2 Interest
Rate Hedge Collateral Account.  ARG
shall establish and maintain, or cause to be established and maintained, in the
name of the Trustee for the benefit of the Series 2005-2 Initial Interest Rate
Hedge Provider, an account (the “Series 2005-2 Interest Rate Hedge
Collateral Account”), 

 

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bearing a designation clearly indicating that the
funds deposited therein are held for the benefit of the Series 2005-2 Initial
Interest Rate Hedge Provider.  The Series
2005-2 Interest Rate Hedge Collateral Account shall be maintained (i) with a
Qualified Institution or (ii) as a segregated trust account with the corporate
trust department of a depository institution or trust company having corporate
trust powers and acting as trustee for funds deposited in the Series 2005-2
Interest Rate Hedge Collateral Account; provided, that, if such
account is maintained with a Qualified Institution and at any time such
institution fails to satisfy the definition of Qualified Institution, then ARG
shall, within 10 Business Days of such event, establish a new Series 2005-2
Interest Rate Hedge Collateral Account with a new Qualified Institution or a
new segregated trust account with the corporate trust department of a
depository institution or trust company having corporate trust powers and
acting as trustee for funds deposited in the Series 2005-2 Interest Rate Hedge
Collateral Account.  If a new Series
2005-2 Interest Rate Hedge Collateral Account is established, ARG shall
instruct the Trustee in writing to transfer all cash and investments from the
non-qualifying Series 2005-2 Interest Rate Hedge Collateral Account into the
new Series 2005-2 Interest Rate Hedge Collateral Account.  Initially, the Series 2005-2 Interest Rate
Hedge Collateral Account will be established with The Bank of New York.

(b)   Administration of the Series 2005-2
Interest Rate Hedge Collateral Account. 
ARG may instruct (by standing instructions or otherwise) the institution
maintaining the Series 2005-2 Interest Rate Hedge Collateral Account to invest
funds on deposit in the Series 2005-2 Interest Rate Hedge Collateral Account
from time to time in Permitted Investments or, subject to receipt of the prior
written consent of the Series 2005-2 Initial Interest Rate Hedge Provider (by
standing instructions or otherwise), any other investments.  All such investments will be credited to the
Series 2005-2 Interest Rate Hedge Collateral Account and any such investments
that constitute (i) Physical Property (and that is not either a United States
Security Entitlement or a Security Entitlement) or Uncertificated Securities
(and not United States Security Entitlements) shall be delivered to the Trustee
in accordance with the definition of “Delivery” and shall be held by the
Trustee pending maturity or disposition and (ii) United States Security
Entitlements or Security Entitlements shall be Controlled by the Trustee
pending maturity or disposition.  The
Trustee shall, at the expense of ARG, take such action as is requested of it to
maintain the Trustee’s security interest in the investments credited to the
Series 2005-2 Interest Rate Hedge Collateral Account.  ARG shall not direct the Trustee to dispose
of (or permit the disposal of) any investments prior to the maturity thereof to
the extent such disposal would result in a loss of the purchase price of such
investments, unless the Series 2005-2 Initial Interest Rate Hedge Provider
consents to such disposal.  In the
absence of written investment instructions hereunder, funds on deposit in the
Series 2005-2 Interest Rate Hedge Collateral Account shall remain uninvested.

(c)   Earnings from Series 2005-2 Interest Rate
Hedge Collateral Account.  All
interest and earnings (net of losses and investment expenses) paid on funds on
deposit in the Series 2005-2 Interest Rate Hedge Collateral Account shall be
deemed to be on deposit therein and available for distribution.

 

79

 

(d)   Series 2005-2 Interest Rate Hedge
Collateral Account Constitutes Additional Collateral for Series 2005-2 Interest
Rate Hedge Provider.  In order to secure and provide for
the payment of any termination payments under the Series 2005-2 Initial
Interest Rate Hedge Provider Hedges, ARG hereby grants a security interest in
and assigns, pledges, grants, transfers and sets over to the Trustee, for the
benefit of the Series 2005-2 Initial Interest Rate Hedge Provider, all of ARG’s
right, title and interest in and to the following (whether now or hereafter
existing or acquired): (i) the Series 2005-2 Interest Rate Hedge Collateral
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 2005-2 Interest Rate Hedge
Collateral 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
2005-2 Interest Rate Hedge Collateral 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 2005-2 Interest Rate Hedge Collateral Account,
the funds on deposit therein from time to time or the investments made with
such funds; and (vi) all proceeds of any and all of the foregoing, including,
without limitation, cash (the items in the foregoing clauses (i) through (vi)
are referred to, collectively, as the “Series 2005-2 Interest Rate Hedge
Collateral Account Collateral”).  The
Trustee, for the benefit of the Series 2005-2 Initial Interest Rate Hedge
Provider, shall possess all right, title and interest in all funds on deposit
from time to time in the Series 2005-2 Interest Rate Hedge Collateral Account
and in all proceeds thereof, and shall be the only person authorized to
originate entitlement orders in respect of the Series 2005-2 Interest Rate
Hedge Collateral Account.  The Series
2005-2 Interest Rate Hedge Collateral Account Collateral shall be under the
sole dominion and control of the Trustee for the benefit of the Series 2005-2
Initial Interest Rate Hedge Provider.  The Trustee hereby agrees that any right of
setoff, banker’s lien or other security interest it may have in the Series
2005-2 Interest Rate Hedge Collateral Account or the Collateral therein shall
be subordinate to the security interest of the Series 2005-2 Initial Interest
Rate Hedge Provider.

(e)   Withdrawals from the Series 2005-2
Interest Rate Hedge Collateral Account. 
If the Servicer determines, or if the Servicer fails to so determine, so
long as no payment default by the Series 2005-2 Initial Interest Rate Hedge
Provider under any of the Series 2005-2 Initial Interest Rate Hedge Provider
Hedges has occurred and is continuing, the Series 2005-2 Initial Interest Rate
Hedge Provider may determine, on any Distribution Date that (i) the amount
available under this Series Supplement for the payment of all termination
amounts due and owing from ARG on such Distribution Date under the Series
2005-2 Initial Interest Rate Hedge Provider’s Series 2005-2 Interest Rate Hedge
is insufficient to pay such termination amounts, or (ii) the amount available
under the Series Supplement relating to any other Series 2005-2 Initial
Interest Rate Hedge Provider Hedge for the payment of any termination amount
due and owing from ARG on such Distribution Date under the Series 2005-2
Initial Interest Rate Hedge Provider Hedge is insufficient to pay such
termination amount, then in each case the Servicer shall

 

80

 

instruct, or if the Servicer fails to so instruct, so
long as no payment default by the Series 2005-2 Initial Interest Rate Hedge
Provider under any of the Series 2005-2 Initial Interest Rate Hedge Provider
Hedges has occurred and is continuing, the Series 2005-2 Initial Interest Rate
Hedge Provider may instruct, the Trustee in writing to withdraw from the Series
2005-2 Interest Rate Hedge Collateral Account and pay by wire transfer to the
Series 2005-2 Initial Interest Rate Hedge Provider on such Distribution Date an
amount equal to the lesser of the Series 2005-2 Available
Interest Rate Hedge Collateral Account Amount and the aggregate of such
insufficiency.

(f)    Series 2005-2 Interest Rate Hedge
Collateral Account Surplus.  In the
event that the Series 2005-2 Interest Rate Hedge Collateral Account Surplus on
any date is greater than zero, the Trustee, acting in accordance with the
written instructions of the Servicer, shall withdraw such excess amount from
the Series 2005-2 Interest Rate Hedge Collateral Account and shall pay such
excess amount to ARG.

Termination of Series 2005-2 Interest Rate Hedge
Collateral Account. 
Upon the termination of this Series Supplement in accordance with its
terms, the Trustee, acting in accordance with the written instructions of the
Servicer, after the prior payment of all amounts owing to the Series 2005-2
Initial Interest Rate Hedge Provider and payable from the Series 2005-2 Interest
Rate Hedge Collateral Account as provided herein, shall withdraw from the
Series 2005-2 Interest Rate Hedge Collateral Account all amounts on deposit
therein for payment to ARG.

ARTICLE III

AMORTIZATION EVENTS

In addition to the Amortization
Events set forth in Section 9.1 of the Base Indenture, the following shall be
Amortization Events with respect to the Series 2005-2 Notes (the “Series
2005-2 Amortization Events”) and shall constitute the Amortization Events
set forth in Section 9.1(d) of the Base Indenture with respect to the Series
2005-2 Notes:

(a)   ARG defaults in the payment of any interest
on, or other amount payable in respect of, the Series 2005-2 Notes when the
same becomes due and payable and such default continues for a period of five
(5) Business Days;

(b)   ARG defaults in the payment of any principal
of the Series 2005-2 Notes when the same becomes due and payable and such
default continues for a period of one (1) Business Day;

(c)   a Series 2005-2 Enhancement Deficiency shall
occur and continue for at least two (2) Business Days;

(d)   a Series 2005-2 Liquidity Deficiency shall
occur and continue for at least two (2) Business Days;

 

81

 

(e)   the Series 2005-2 Overcollateralization
Amount shall be less than the Series 2005-2 Required Overcollateralization
Amount for at least two (2) Business Days;

(f)    an Aggregate Asset Amount Deficiency shall
occur and continue for at least two (2) Business Days;

(g)   the Series 2005-2 Reserve Account, the Series
2005-2 Collection Account or the Series 2005-2 Excess Collection Account shall
be subject to an injunction, estoppel or other stay or a Lien (other than
Permitted Liens) for at least two Business Days and either a Series 2005-2
Enhancement Deficiency or a Series 2005-2 Liquidity Deficiency would result
from excluding the amount on deposit in any such account that is subject to an
injunction, estoppel or other stay or a Lien (other than Permitted Liens) from
the Series 2005-2 Enhancement Amount or the Series 2005-2 Liquidity Amount, to
the extent applicable;

(h)   from and after the funding of  the Series 2005-2 Cash Collateral Account,
such Series 2005-2 Cash Collateral Account shall be subject to an injunction,
estoppel or other stay or a Lien (other than Permitted Liens) for at least two
Business Days and either a Series 2005-2 Enhancement Deficiency or a Series
2005-2 Liquidity Deficiency would result from excluding the amount on deposit
in the Series 2005-2 Cash Collateral Account from the Series 2005-2 Enhancement
Amount or the Series 2005-2 Liquidity Amount;

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

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

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

(l)    all principal of and interest on the Class
A-1 Notes is not paid in full on or before the Class A-1/A-2 Expected Final
Distribution Date, all principal of and interest on the Class A-2 Notes is not
paid in full on or before the Class A-1/A-2 Expected Final Distribution Date,
all principal of and interest on the Class A-3 Notes is not paid in full on or
before the Class A-3 Expected Final Distribution Date, all principal of and
interest on the Class A-4 Notes is not paid in full on or before the Class
A-4/A-5 Expected Final Distribution Date or all principal of and interest on
the Class A-5 Notes is not paid in full on or before the Class A-4/A-5 Expected
Final Distribution Date;

(m)  ARG fails to comply with any of its other
agreements or covenants in, or provisions of, the Series 2005-2 Notes or the
Indenture (other than its covenants set forth in Section 2.11(a), (b),
(c) and (e) of this Series Supplement) and the failure to so
comply materially and adversely affects the interests of the Series 2005-2
Noteholders and continues to materially and adversely affect the interests of
the Series 2005-2 Noteholders for a period of forty-five (45) days after the
earlier of (i) the date on which

 

82

 

ARG obtains knowledge thereof or (ii) the date on
which written notice of such failure, requiring the same to be remedied, shall
have been given to ARG by the Trustee or to ARG and the Trustee by the Required
Noteholders;

(n)   any representation made by ARG in the
Indenture or any Related Document is false and such false representation
materially and adversely affects the interests of the Series 2005-2 Noteholders
and such false representation is not cured for a period of forty-five (45) days
after the earlier of (i) the date on which ARG obtains knowledge thereof or
(ii) the date that written notice thereof is given to ARG by the Trustee or to
ARG and the Trustee by the Required Noteholders;

(o)   a Leasing Company Amortization Event shall
have occurred and be continuing with respect to all of the Leasing Company
Notes;

(p)   any of the Related Documents (other than any
Related Document relating solely to another Series of Notes) or any material
portion thereof shall not be in full force and effect, enforceable in
accordance with its terms (other than (i) any such  Related Document that has been terminated in
accordance with its terms or (ii) any Manufacturer Program that is not in full
force and effect or that is unenforceable in accordance with its terms to the
extent that no Series 2005-2 Enhancement Deficiency results from redesignating
each Series 2005-2 Program Vehicle subject to such Manufacturer Program as a
Series 2005-2 Non-Program Vehicle) or ARG shall so assert in writing;

(q)   any Series 2005-2 Letter of Credit shall not
be in full force and effect for at least two (2) Business Days and either (x) a
Series 2005-2 Enhancement Deficiency would result from excluding such Series
2005-2 Letter of Credit from the Series 2005-2 Enhancement Amount or (y) a
Series 2005-2  Liquidity Deficiency would
result from excluding such Series 2005-2 Letter of Credit from the Series
2005-2 Liquidity Amount, to the extent applicable;

(r)    ARG agrees or consents to any assignment,
modification or amendment of the Escrow Agreement without the consent of the
Surety Provider (for so long as no Surety Default shall have occurred and be
continuing); or

(s)   ARG agrees or consents to any amendment or
assignment of or waiver under the Master Exchange Agreement without the consent
of the Surety Provider (for so long as no Surety Default shall have occurred
and be continuing).

In the case of

(i) any event
described in clauses (a) through (l), (o), and (q)  above,
an Amortization Event with respect to the Series 2005-2 Notes shall immediately
occur without any notice or other action on the part of the Trustee or any
Series 2005-2 Noteholder; or

(ii) any event
described in clauses (m), (n), (p), (r) or (s)
above, either the Trustee or Series 2005-2 Noteholders holding more than 50% of
the Series 2005-2

 

83

 

Invested Amount may, by written
notice to ARG, declare that an Amortization Event with respect to the Series
2005-2 Notes has occurred as of the date of the notice.  Amortization Events with respect to the
Series 2005-2 Notes described in

 

84

 

clauses (a)
through (l), (o), and (q) above will be subject to waiver
by 100% of the Series 2005-2 Noteholders. 
An Amortization Event with respect to the Series 2005-2 Notes described
in clauses (m), (n), (p), (r) or (s) above
shall be subject to waiver in accordance with Section 9.4 of the Base
Indenture.

ARTICLE IV

[RESERVED]

ARTICLE V

[RESERVED]

ARTICLE VI

FORM OF SERIES 2005-2 NOTES

Section 6.1             Restricted
Global Series 2005-2 Notes.

The Series 2005-2 Notes to be
issued in the United States will be issued in book-entry form and represented
by one or more permanent global Notes in fully registered form without interest
coupons (each, a “Restricted Global Class A-1 Note”, a “Restricted
Global Class A-2 Note”, a “Restricted Global Class A-3 Note”, a “Restricted
Global Class A-4 Note” or a “Restricted Global Class A-5 Note”, and,
collectively, the “Restricted Global 
Notes”), substantially in the form set forth in Exhibit A-1-1,
Exhibit A-1-2, Exhibit A-1-3, Exhibit A-1-4 and Exhibit
A-1-5, respectively, hereto, with such legends as may be applicable thereto as
set forth in the Base Indenture, and will be sold only in the United States (1)
initially to institutional accredited investors within the meaning of
Regulation D under the Securities Act in reliance on an exemption from the
registration requirements of the Securities Act and (2) thereafter to qualified
institutional buyers within the meaning of, and in reliance on, Rule 144A under
the Securities Act and shall be deposited on behalf of the purchasers of the
Series 2005-2 Notes represented thereby, with a custodian for DTC, and
registered in the name of Cede as DTC’s nominee, duly executed by ARG and
authenticated by the Trustee in the manner set forth in Section 2.4 of the Base
Indenture.  Interests in a Restricted
Global  Note will be exchangeable for
definitive Series 2005-2 Notes in accordance with the provisions of the Base
Indenture (as modified by this Series Supplement).

Section 6.2             Temporary
Global Series 2005-2 Notes; Permanent Global Series 2005-2 Notes.

The Series 2005-2 Notes to be
issued outside the United States will be issued and sold in offshore transactions
(as defined in Regulation S under the Securities Act) to investors that are not
U.S. Persons in reliance on Regulation S under the Securities Act, as provided
in the applicable purchase agreement, and shall initially be issued in the form
of one or more temporary notes in registered form without interest 

 

85

 

coupons (each, a “Temporary
Global Class A-1 Note”, a “Temporary Global Class A-2 Note”, a “Temporary
Global Class A-3 Note”, a “Temporary Global Class A-4 Note”  or a “Temporary Global Class A-5 Note” and,
collectively, the “Temporary Global Notes”), substantially in the form set
forth in Exhibit A-2-1, Exhibit A-2-2, Exhibit A-2-3, Exhibit A-2-4 and Exhibit
A-2-5 hereto, which shall be deposited on behalf of the purchasers of the
Series 2005-2 Notes represented thereby with a custodian for, and registered in
the name of a nominee of DTC, for the accounts of Euroclear Bank, S.A./N.V., as
operator of Euroclear and for Clearstream, Luxembourg, duly executed by ARG and
authenticated by the Trustee in the manner set forth in Section 2.4 of the Base
Indenture.  Interests in a Temporary
Global Note will be exchangeable, in whole or in part, for interests in one or more
permanent global notes in registered form without interest coupons (each, a
“Permanent Global Class A-1 Note”, a “Permanent Global Class A-2 Note”, a
“Permanent Global Class A-3 Note”, a “Permanent Global Class A-4 Note” or a
“Permanent Global Class A-5 Note” and, collectively, the “Permanent Global
Notes”), substantially in the form of Exhibit A-3-1, Exhibit A-3-2, Exhibit
A-3-3, Exhibit A-3-4 and Exhibit A-3-5 hereto, in accordance with the
provisions of such Temporary Global Note and the Base Indenture (as modified by
this Series Supplement).  Interests in a
Permanent Global Note will be exchangeable for definitive Series 2005-2 Notes
in accordance with the provisions of such Permanent Global Note and the Base
Indenture (as modified by this Series Supplement).

ARTICLE VII

TERMINATION OF SERIES SUPPLEMENT

Section 7.1             Termination
of Series Supplement.

(a)   This Series Supplement shall cease to be of
further effect when all Outstanding Series 2005-2 Notes theretofore
authenticated and issued have been delivered (other than destroyed, lost or stolen
Series 2005-2 Notes which have been replaced or paid) to the Trustee for
cancellation, ARG has paid all sums due and payable hereunder, the Surety
Provider has been paid all Surety Provider Fees and all other Surety Provider
Reimbursement Amounts due under the Insurance Agreement, each Series 2005-2
Initial Interest Rate Hedge Provider Hedge has been terminated and, for so long
as no payment default by the Series 2005-2 Initial Interest Rate Hedge Provider
under its related Series 2005-2 Interest Rate Hedge has occurred and is
continuing, the Series 2005-2 Initial Interest Rate Hedge Provider has been
paid all amounts owing to it under each of its Series 2005-2 Initial Interest
Rate Hedge Provider Hedges and, if the Series 2005-2 Demand Note Payment on the
Series 2005-2 Letter of Credit Termination Date was greater than zero, all
amounts have been withdrawn from the Series 2005-2 Cash Collateral Account in
accordance with Section 2.8(i) of this Series Supplement.

(b)   In addition, ARG may terminate all of its
obligations under this Series Supplement if:

 

86

 

(i)            ARG irrevocably deposits in trust
with the Trustee or at the option of the Trustee, with a trustee reasonably
satisfactory to the Trustee and ARG under the terms of an irrevocable trust
agreement in form and substance satisfactory to the Trustee, money or U.S.
Government Obligations (together with rights under any applicable and available
hedging arrangements in respect of principal of and interest on the Series
2005-2 Notes) in an amount sufficient, in the opinion of a nationally
recognized firm of independent certified public accountants expressed in a
written certification thereof delivered to the Trustee, to pay, when due,
principal and interest on the Series 2005-2 Notes to maturity or redemption, as
the case may be, and to pay all other sums payable by it hereunder (taking into
account any applicable and available hedging arrangements in respect of
principal of or interest on the Series 2005-2 Notes); provided, however,
that (1) the trustee of the irrevocable trust shall have been irrevocably
instructed to pay such money or the proceeds of such U.S. Government
Obligations and hedging arrangements to the Trustee and (2) the Trustee shall
have been irrevocably instructed to apply such money or the proceeds of such
U.S. Government Obligations and hedging arrangements to the payment of said
principal and interest with respect to the Series 2005-2 Notes;

(ii)           ARG delivers to the Trustee an
Officer’s Certificate stating that all conditions precedent to satisfaction and
discharge of this Series Supplement have been complied with, and an Opinion of
Counsel to the same effect;

(iii)          ARG delivers to the Trustee an Officer’s
Certificate stating that no Potential Amortization Event or Amortization Event,
in either case, shall have occurred and be continuing with respect to the
Series 2005-2 Notes on the date of such deposit;

(iv)          ARG delivers to the Trustee an Opinion
of Counsel to the effect that the termination of ARG’s obligations under this
Series Supplement in accordance with the provisions of this Article VII
shall not result in the recognition of gain by the Series 2005-2 Noteholders at
the time of such termination; and

(v)           the Series 2005-2 Rating Agency Confirmation
and Consent Condition is satisfied.

Then, this Series Supplement
shall cease to be of further effect.

(c)   After such irrevocable deposit made pursuant
to Section 7.1(b) of this Series Supplement and satisfaction of the
other conditions set forth herein, the Trustee promptly upon request shall
acknowledge in writing the discharge of ARG’s obligations under this Series
Supplement.

In order to have money available
on a payment date to pay principal or interest on the Series 2005-2 Notes, the
U.S. Government Obligations (and any amounts

 

87

 

due under any applicable hedging
arrangements) shall be payable as to principal or interest at least one
Business Day before such payment date in such amounts as will provide the
necessary money.  U.S. Government
Obligations shall not be callable at the issuer’s option.

Section 7.2             Application
of Trust Money.

The Trustee or a trustee
satisfactory to the Trustee and ARG shall hold in trust money or U.S.
Government Obligations deposited with it pursuant to Section 7.1 of this
Series Supplement.  The Trustee shall
apply the deposited money and the money from U.S. Government Obligations (and
any amounts received under any applicable hedging arrangements) in accordance
with the Indenture to the payment of principal of and interest on the Series
2005-2 Notes.

The provisions of this Section
7.2 shall survive the expiration or earlier termination of this Series
Supplement.

ARTICLE VIII

GENERAL

Section 8.1             Optional
Repurchase of Series 2005-2 Notes. 
The Series 2005-2 Notes shall be subject to repurchase by ARG at its
option in accordance with Section 6.2 of the Base Indenture, in whole but not
in part, on any Distribution Date on which the Series 2005-2 Invested Amount is
less than or equal to 10% of the Series 2005-2 Initial Invested Amount (the “Series
2005-2 Repurchase Amount”); provided, however, that, as a
condition precedent to any repurchase, on or prior to the Distribution Date on
which any Series 2005-2 Note is repurchased by ARG pursuant to this Section
8.1, ARG shall (x) pay the Surety Provider all Surety Provider Fees and all
other Surety Provider Reimbursement Amounts due and unpaid as of such
Distribution Date and (y) pay each Series 2005-2 Interest Rate Hedge Provider
all amounts, including any termination payments, due to it under the related
Series 2005-2 Interest Rate Hedge; and provided further that such repurchase
will not cause a draw under the Surety Bond. 
The repurchase price for any Series 2005-2 Note shall equal the
aggregate outstanding principal balance of such Series 2005-2 Note (determined
after giving effect to any payments of principal and interest on such
Distribution Date), plus accrued and unpaid interest on such outstanding
principal balance.

Section 8.2             Information.

(a)   On or before each Determination Date, ARG
shall furnish, or cause to be furnished, to the Trustee a Monthly Noteholders’
Statement with respect to the Series 2005-2 Notes, substantially in the form of
Exhibit G, setting forth, inter  alia, the following
information:

 

88

 

(i)            the Series 2005-2 Invested
Percentage with respect to Interest Collections and with respect to Principal
Collections for the period from and including the second Determination Date
preceding such Distribution Date to but excluding the Determination Date
immediately preceding such Distribution Date;

(ii)           the Series 2005-2 Enhancement Amount
and the Series 2005-2 Liquidity Amount, in each case, as of the close of business
on the Determination Date immediately preceding such Distribution Date;

(iii)          whether, to the knowledge of the
Servicer, any Lien exists on any of the Series 2005-2 Collateral (other than
Permitted Liens);

(iv)          whether any Leasing Company
Amortization Event or Lease Event of Default has occurred;

(v)           whether any Amortization Event or
Potential Amortization Event with respect to the Series 2005-2 Notes has
occurred;

(vi)          the Aggregate Asset Amount and the
amount of the Aggregate Asset Amount Deficiency, if any, at the close of
business on the last day of the Related Month;

(vii)         the Series 2005-2 Non-Program Vehicle
Amount, the Series 2005-2 Non-Program Vehicle Percentage, the GM Vehicle
Amount, the Specified BBB-/Baa3 Amount, the Specified BBB-/Baa3 Vehicle
Percentage Excess and the GM Freeze Vehicle Percentage as of the last day of
the Related Month;

(viii)        the Fair Market Value Average and
Measurement Month Average as of the Determination Date immediately preceding
such Distribution Date (including a calculation of the components thereof);

(ix)           the Series 2005-2 Required
Enhancement Incremental Amount, if any, as of the last day of the Related
Month;

(x)            the Series 2005-2 Required Liquidity
Amount as of the as of the last day of the Related Month and whether the Series
2005-2 Liquidity Amount is less than the Series 2005-2 Required Liquidity
Amount as of the last day of the Related Month;

(xi)           the Series 2005-2 Required
Enhancement Amount and whether a Series 2005-2 Enhancement Deficiency exists
and the amount thereof;

(xii)          with respect to each Manufacturer, the
percentage of all Vehicles as of the end of the Related Month which were Series
2005-2 Program Vehicles manufactured by such Manufacturer;

 

89

 

(xiii)         with respect to each Manufacturer, the
percentage of all Vehicles as of the end of the Related Month which were Series
2005-2 Non-Program Vehicles manufactured by such Manufacturer;

(xiv)        the amount of any withdrawal from the
Series 2005-2 Reserve Account, the Series 2005-2 Cash Collateral Account, any
demand on the Series 2005-2 Demand Note or any drawing on any Series 2005-2
Letter of Credit anticipated to be made on such Distribution Date; and

(xv)         the Class A-1/A-2 Carryover Controlled
Amortization Amount, the Class A-3 Carryover Controlled Amortization Amount or
the Class A-4/A-5 Carryover Controlled Amortization Amount, if any, for the
Related Month.

The Trustee shall provide to the
Series 2005-2 Noteholders, or their designated agent, and the Surety Provider
copies of each Monthly Noteholders’ Statement.

(b)           On an annual basis, commencing March
31, 2006, ARG shall furnish to the Trustee, with copies to the Surety Provider
and each Rating Agency, a report (the “Non-Program Vehicle Report”) of a
firm of nationally recognized independent public accountants (who may also
render other services to Vanguard and its affiliates and which is acceptable to
the Rating Agencies) to the effect that they have performed certain agreed upon
procedures (effective through December 31 of the preceding year), specifically
(i) compared the procedures related to the calculation of Disposition Proceeds
and Termination Payments obtained from the sale or other disposition of Series
2005-2 Non-Program Vehicles (other than Series 2005-2 Ineligible Program
Vehicles and Casualties) sold or otherwise disposed of during each Related
Month to those procedures outlined in the Related Documents and compared the
results of such procedures to the corresponding amounts set forth in the Monthly
Noteholders’ Statement with respect to the Series 2005-2 Notes, (ii) compared
the procedures related to the calculation of the Measurement Month Average and
the Fair Market Value Average for each month in such period to those procedures
outlined in the Related Documents and compared the results of such procedures
with the corresponding amounts set forth in the Monthly Noteholders’ Statement
with respect to the Series 2005-2 Notes and (iii) compared the procedures
related to the calculation of the Net Book Value and Fair Market Value of the
Series 2005-2 Non-Program Vehicles (other than Series 2005-2 Ineligible Program
Vehicles) for the Related Month to those procedures outlined in the Related
Documents and compared the results of such procedures to the amounts set forth
in the Monthly Noteholders’ Statement with respect to the Series 2005-2 Notes,
and that on the basis of such comparisons referenced in (i), (ii) and (iii)
(which comparisons shall be provided as part of the Non-Program Vehicle Report)
such accountants are reporting that the procedures are in compliance with the
requirements of the Related Documents and the results of such procedures are in
agreement with the amounts set forth in the Monthly Noteholders’ Statement with
respect to the Series 2005-2 Notes, in each case except for such exception as
shall be set forth in such Non-Program Vehicle Report.

 

90

 

(c)   Promptly upon becoming aware of any Potential
Amortization Event, Amortization Event, Leasing Company Amortization Event,
Potential Leasing Company Amortization Event, Lease Event of Default or
Potential Lease Event of Default, ARG shall give the Surety Provider and the
Trustee notice thereof, together with a certificate of an Authorized Officer of
ARG setting forth the details thereof and any action with respect thereto taken
or contemplated to be taken by ARG.  Promptly
upon becoming aware of any claim by any Person that any payment received by ARG
under the Series 2005-2 Demand Note was a voidable preference under the United
States Bankruptcy Code, ARG shall give the Surety Provider and the Series
2005-2 Letter of Credit Providers notice thereof.

(d)   Promptly upon becoming aware of any default
under any Related Document, ARG shall give the Surety Provider notice thereof.

(e)   ARG shall promptly furnish to the Surety
Provider such other information as, and in such form as, the Surety Provider
may reasonably request in connection with the transactions contemplated hereby.

Section 8.3             Issuances
of Additional Series 2005-2 Notes

 

(a)   From time to time on any Distribution Date
during the Series 2005-2 Revolving Period, ARG may, subject to the conditions
set forth in clause (b) below, issue Additional Series 2005-2 Notes which will
be identical in all respects to the other Series 2005-2 Notes of the
corresponding Class and will be equally and ratably entitled to the benefits of
the Indenture without preference, priority or distinction.  The initial principal amount of all
Additional Series 2005-2 Notes shall be allocated among the Series 2005-2 Notes
and the Series 2005-2 Invested Amount will be increased accordingly.

(b)   Additional Series 2005-2 Notes may be issued
only upon satisfaction of the following conditions: (i) after giving effect to
the issuance of such Additional Series 2005-2 Notes, no Amortization Event or
Potential Amortization Event will exist, (ii) the Series 2005-2 Rating Agency
Confirmation and Consent Condition shall have been satisfied in respect of the
issuance of such Additional Series 2005-2 Notes, (iii) one or more Series
2005-2 Interest Rate Hedges have been acquired from a Qualified Interest Rate
Hedge Provider in an aggregate initial notional amount equal to the aggregate
Invested Amount of the Additional Series 2005-2 Floating Rate Notes, with a
strike rate equal to no more than 4.50% per annum with respect to a Class A-2
Interest Rate Hedge, 4.50% per annum with respect to a Class A-3 Interest Rate
Hedge and 4.50% per annum with respect to a Class A-5 Interest Rate Hedge, (iv)
the excess of the principal amount of any class of Additional Series 2005-2
Notes over their issue price will not exceed the maximum amount permitted under
the Code without the creation of an original issue discount and (v) the Trustee
shall have received an opinion of counsel to the effect that (A) the Additional
Series 2005-2 Notes will be characterized as indebtedness of ARG for federal
income tax purposes, (B) the issuance of the Additional Series 2005-2 Notes
will not adversely affect the tax characterization of the Series 2005-2 Notes,
(C) the

 

 

91

 

Additional Series 2005-2 Notes shall be enforceable
obligations of ARG and (D) all conditions precedent to the issuance and
authentication of such Additional Series 2005-2 Notes have been complied with.

Section 8.4             Series
2005-2 Demand Note

 

Other
than pursuant to a demand thereon pursuant to Section 2.5(b) or (c)
of this Series Supplement, ARG shall not reduce the amount of the Series 2005-2
Demand Note or forgive amounts payable thereunder so that the outstanding
principal amount of the Series 2005-2 Demand Note after such reduction or
forgiveness is less than the greater of (i) the sum of the Series 2005-2 Letter
of Credit Liquidity Amount and (ii) an amount equal to 0.50% of the Series
2005-2 Invested Amount thereafter; provided, however that if ARG
has first delivered to the Trustee an Opinion of Counsel that reduction or
forgiveness of amounts owing under the Series 2005-2 Demand Note to an amount
less than 0.50% of the Series 2005-2 Invested Amount thereafter will not have
an adverse effect on the tax characterization of the Series 2005-2 Notes, ARG
may reduce the amount of the Series 2005-2 Demand Note or forgive amounts
payable thereunder to an amount less than 0.50% of the Series 2005-2 Invested
Amount, but equal to or greater than the Series 2005-2 Letter of Credit
Liquidity Amount.  ARG shall not agree to
any amendment of the Series 2005-2 Demand Note without first satisfying the
Series 2005-2 Rating Agency Confirmation and Consent Condition.

Section 8.5             Disposition
Agent Agreement

 

Except as otherwise
provided in Section 13.20 of the Base Indenture, the Trustee shall not, at the
direction of the Requisite Investors, consent to or select any successor
Disposition Agent following the resignation, removal or termination of the
Disposition Agent prior to the satisfaction of the Series 2005-2 Rating Agency
Confirmation Condition.  Except as
provided in Sections 13.20(c) and 13.20(d) of the Base Indenture, the Trustee,
as a Specified Beneficiary under the Disposition Agent Agreement, shall not at
the direction of the Requisite Investors consent to or select any successor
Disposition Agent, or consent to any
alternative arrangement in lieu of appointing a successor Disposition Agent
following the resignation, removal or termination of the Disposition Agent,
unless (x) on any date on or prior to March 20, 2006 the Series 2005-2 Rating
Agency Confirmation and Consent Condition shall have been satisfied with
respect to such resignation, removal or termination of the Disposition Agent or
(y) on any date after March 20, 2006, the Surety Provider shall have given its
prior written consent and the Series 2005-2 Rating Agency Confirmation
Condition shall have been satisfied with respect to such resignation, removal
or termination of the Disposition Agent.

Section 8.6             Exhibits

 

The following exhibits attached
hereto supplement the exhibits included in the Indenture:

 

92

 

	
  Exhibit A-1-1:

  	
   

  	
  Form of Restricted Global Class A-1 Note

  
	
  Exhibit A-1-2:

  	
   

  	
  Form of Restricted Global Class A-2 Note

  
	
  Exhibit A-1-3:

  	
   

  	
  Form of Restricted Global Class A-3 Note

  
	
  Exhibit A-1-4:

  	
   

  	
  Form of Restricted Global Class A-4 Note

  
	
  Exhibit A-1-5:

  	
   

  	
  Form of Restricted Global Class A-5 Note

  
	
  Exhibit A-2-1:

  	
   

  	
  Form of Temporary Global Class A-1 Note

  
	
  Exhibit A-2-2:

  	
   

  	
  Form of Temporary Global Class A-2 Note

  
	
  Exhibit A-2-3:

  	
   

  	
  Form of Temporary Global Class A-3 Note

  
	
  Exhibit A-2-4:

  	
   

  	
  Form of Temporary Global Class A-4 Note

  
	
  Exhibit A-2-5:

  	
   

  	
  Form of Temporary Global Class A-5 Note

  
	
  Exhibit A-3-1:

  	
   

  	
  Form of Permanent Global Class A-1 Note

  
	
  Exhibit A-3-2:

  	
   

  	
  Form of Permanent Global Class A-2 Note

  
	
  Exhibit A-3-3:

  	
   

  	
  Form of Permanent Global Class A-3 Note

  
	
  Exhibit A-3-4:

  	
   

  	
  Form of Permanent Global Class A-4 Note

  
	
  Exhibit A-3-5:

  	
   

  	
  Form of Permanent Global Class A-5 Note

  
	
  Exhibit B:

  	
   

  	
  Form of Series 2005-2 Demand Note

  
	
  Exhibit C-l:

  	
   

  	
  Series 2005-2 Eligible Non-Program
  Manufacturers

  
	
  Exhibit C-2:

  	
   

  	
  Series 2005-2 Eligible Program Manufacturers

  
	
  Exhibit D:

  	
   

  	
  Form of Series 2005-2 Letter of Credit

  
	
  Exhibit E:

  	
   

  	
  Form of Lease Payment Deficit Notice

  
	
  Exhibit F:

  	
   

  	
  [Reserved]

  
	
  Exhibit G:

  	
   

  	
  Form of Monthly Noteholders’ Statements

  
	
  Exhibit H:

  	
   

  	
  Form of Series 2005-2 Interest Rate Hedge

  

 

 

Section 8.7             Ratification
of Base Indenture

 

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

Section 8.8             Notice
to Surety Provider, the Series 2005-2 Interest Rate Hedge Provider and Rating
Agencies

 

The Trustee shall provide
to the Surety Provider, the Series 2005-2 Interest Rate Hedge Provider and each
Rating Agency a copy of each notice, opinion of counsel, and Officer’s
Certificate delivered to, the Trustee pursuant to this Series Supplement or any
other Related Document.  Each such opinion
of counsel shall be addressed to the Surety Provider, shall be from counsel
reasonably acceptable to the Surety Provider and shall be in form and substance reasonably acceptable to the
Surety Provider.  The Trustee shall
provide to the Surety Provider, the Series 2005-2 Interest Rate Hedge Provider
and each Rating Agency a copy of each notice, opinion of counsel, and Officer’s
Certificate delivered to the Trustee, as the registered holder of the Leasing
Company Notes, pursuant to the Leasing Company Related Documents.  All such notices, opinions, certificates or
other items to be delivered to the Surety Provider shall

 

93

 

be forwarded to Ambac
Assurance Corporation, One State Street Plaza, 
New York, New York 10004 Attention: General Counsel:  (212) 208-3566, confirmation:  (212) 668-0430.

Section 8.9             Surety
Provider Deemed Noteholder and Secured Party

 

Except for any period during
which a Surety Default is continuing, the Surety Provider shall be deemed to be
the holder of 100% of the Series 2005-2 Notes for the purposes of giving any
consents, waivers, approvals, instructions, directions, declarations, notices
and/or taking any other action pursuant to the Base Indenture, this Series
Supplement and the other Related Documents. 
Any reference in the Base Indenture or the Related Documents to
materially, adversely, or detrimentally affecting the rights or interests of
the Noteholders, or words of similar meaning, shall be deemed, for purposes of
the Series 2005-2 Notes, to refer to the rights or interests of the Surety
Provider.  In addition, the Surety
Provider shall constitute an “Enhancement Provider” with respect to the Series
2005-2 Notes for all purposes under the Base Indenture and the other Related
Documents  and the Insurance Agreement
shall constitute an “Enhancement Agreement” with respect to the Series 2005-2
Notes for all purposes under the Base Indenture and the other Related
Documents.  Furthermore, the Surety
Provider shall be deemed to be a “Secured Party” under the Base Indenture and
the Related Documents to the extent of amounts payable to the Surety Provider
pursuant to this Series Supplement.

Section 8.10           Third Party Beneficiary

 

The Surety Provider is an
express third party beneficiary of (i) the Base Indenture to the extent of
provisions relating to any Enhancement Provider and (ii) this Series
Supplement.

Section 8.11           Prior Notice by Trustee to Surety
Provider

 

Subject to Section 10.1 of the
Base Indenture, the Trustee agrees that so long as no Amortization Event shall
have occurred and be continuing with respect to any Series of Notes, other than
the Series 2005-2 Notes, it shall not exercise any rights or remedies available
to it as a result of the occurrence of an Amortization Event with respect to
the Series 2005-2 Notes (except those set forth in clauses (j) and (k)
of Article III of this Series Supplement) until after the Trustee has
given prior written notice thereof to the Surety Provider and obtained the
direction of the Required Noteholders. 
The Trustee agrees to notify the Surety Provider promptly following any
exercise of rights or remedies available to it as a result of the occurrence of
an Amortization Event with respect to the Series 2005-2 Notes.

Section 8.12           Subrogation

 

(a)   In furtherance of and not in limitation of
the Surety Provider’s equitable right of subrogation, each of the Trustee and
ARG acknowledge that, to the 

 

94

 

extent of any payment made by the Surety Provider under
the Surety Bond with respect to interest on or principal of the Series 2005-2
Notes (including any Preference Amount), the Surety Provider is to be fully
subrogated to the extent of such payment and any additional interest due on any
late payment, to the rights of the Series 2005-2 Noteholders under the
Indenture.  Each of ARG and the Trustee
agree to such subrogation and, further, agree to take such actions as the
Surety Provider may reasonably request to evidence such subrogation.

(b)   In the event that (x) amounts are withdrawn
from the Series 2005-2 Cash Collateral Account pursuant to Section 2.8(j)
and paid to the Surety Provider with respect to a Preference Amount (as defined
in the Surety Bond) paid by the Surety Provider under the Surety Bond and (y)
the Surety Provider has been paid all Surety Provider Fees and all other Surety
Provider Reimbursement Amounts payable under the Insurance Agreement and the
Surety Provider has no further obligations in respect of the Surety Bond, the
Surety Provider acknowledges that, to the extent of such withdrawal from the
Series 2005-2 Cash Collateral Account and payment to the Surety Provider, the
Series 2005-2 Letter of Credit Providers, if any, are to be fully subrogated to
the extent of such payment to the Surety Provider, to the Surety Provider’s
equitable subrogation rights described in Section 8.12(a) above.  By accepting payment of amounts withdrawn
from the Series 2005-2 Cash Collateral Account, the Surety Provider agrees to
such subrogation and, further, agrees to take such actions at the expense of
the Series 2005-2 Letter of Credit Providers, if any, as such Series 2005-2
Letter of Credit Providers may reasonably request to evidence such subrogation.

Section 8.13           Counterparts

 

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

Section 8.14           Governing Law

 

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

Section 8.15           Amendments

 

This Series Supplement may be modified or amended from time to time in
accordance with the terms of the Base Indenture and, accordingly, any such
modification or amendment shall require the prior written consent of the Surety
Provider (so long as a Surety Default has not occurred and is continuing); provided
that any modification or amendment of Section 2.12 of this Series
Supplement also shall require the prior written consent of the Series 2005-2
Initial Interest Rate Hedge Provider for so long as no payment default by the Series 2005-2 Initial
Interest Rate Hedge Provider has occurred

 

95

 

and is
continuing under any of the Series 2005-2 Initial Interest Rate Hedge Provider
Hedges.

 

Section 8.16           Security Interest Opinion

 

                                On
or before October 30, in each calendar year, beginning in 2006, ARG will
provide an Opinion of Counsel (i) to the effect that either all financing or
continuation statements that are necessary to maintain the Lien created by this
Indenture in the Collateral and the Lien created by the Leasing Company
Indentures in the Collateral (as defined in the Leasing Company Indentures)
have been executed and filed or that no such action is required and (ii)
describing the execution and filing of any financing statements and
continuation statements that will, in the opinion of such counsel, be required
to maintain the Lien created by this Indenture in the Collateral and the Lien
created by the Leasing Company Indentures in the Collateral (as defined in the
Leasing Company Indentures) until October 30 of the following calendar year.

Section 8.17           Agreements Relating to LKE Program.

 

(a)   ARG will not agree or consent to or do any of
the following actions without the consent of the Surety Provider (for so long
as no Surety Default shall have occurred and be continuing):

(i)            any transfer by Alamo Leasing of
Relinquished Property to the Intermediary pursuant to the Master Exchange
Agreement in the event that on the date of any such transfer a QI Parent
Downgrade Event has occurred with respect to such Intermediary; and

(ii)           if at any time, there has occurred a
QI Parent Downgrade Event which is continuing with respect to the Intermediary
(i) the replacement of the Intermediary with a Person that is a
bankruptcy-remote special purpose entity, all of the equity, in which is owned
directly and indirectly (to the extent any such indirect owner has a greater
than 10% indirect ownership interest in the Intermediary) solely by Persons
that are eligible to be debtors under the Bankruptcy Code (unless such Person
satisfies the requirements of Section 13.21(x)(1) of the Alamo Leasing
Indenture) or (ii) the Intermediary continuing to act as the Intermediary under
the Master Exchange Agreement.

(b)   In addition, for so long as no Surety Default
shall have occurred and be continuing, ARG will not agree or consent to
correcting, amending or supplementing the Indenture in connection with the
adoption, amendment or implementation of, or any change in the interpretation,
administration or application of, the Code or the treasury regulations
promulgated thereunder (and any applicable corresponding provisions of state
tax legislation) unless (i) such action does not adversely affect in any
material respect the interests of any Series 2005-2 Noteholders, as evidenced
by an Opinion of Counsel (which Opinion of Counsel may rely as to factual
matters upon Officer’s Certificates of

 

96

 

ARG and other parties) or (ii) the Surety Provider
shall have consented to such correction, amendment or supplement.

Section 8.18           Agreement of Series 2005-2
Noteholders.

 

(a)   Each Series 2005-2 Noteholder by its
acceptance of a Series 2005-2 Note and the Surety Provider each hereby
acknowledges and agrees to:

(i)            construe and interpret provisions
and defined terms in any of the Related Documents that refer to funds which are
receivable by, due to or paid to a party other than the Intermediary (a “Third
Party”), but which pursuant to the terms of the Master Exchange Agreement and
the LKE Program are receivable by, due to or paid to the Intermediary, solely
in its capacity as “qualified intermediary” on behalf of Alamo Leasing, as if
such references expressly address and provide for the implementation of the LKE
Program and the role of the Intermediary;

(ii)           construe and interpret provisions and
defined terms in any of the Related Documents that refer to the assignment or
pledge of certain rights and/or assets to Third Parties, but which pursuant to
the terms of the Master Exchange Agreement and the LKE Program are assigned to
the Intermediary, solely in its capacity as “qualified intermediary” on behalf
of Alamo Leasing, as if such references expressly address and provide for the
implementation of the LKE Program and the role of the Intermediary;

(iii)          construe and interpret provisions and
defined terms in any of the Related Documents such that receivables due from a
Manufacturer with respect to any Vehicle, which would qualify and be included
in the calculation of “Aggregate Asset Amount” under the Related Documents or
in any other calculations of such “receivables” under the Related Documents but
for the implementation of the LKE Program and the interposition of the
Intermediary, shall not cease to be eligible for purposes of calculating or
being included in the calculation of the “Aggregate Asset Amount” or in such
other calculations, in each case under the Related Documents solely due to the
implementation of the LKE Program and the interposition of the Intermediary;

(iv)          the formulation to be used to
calculate the “Aggregate Asset Amount” under the Related Documents, as set
forth in the form of Monthly Noteholders’ Statement attached hereto as Exhibit
G, upon the implementation of the LKE Program; and

(v)           construe and interpret provisions and
defined terms in any of the Related Documents such that, with respect to any
date of determination, if such date would be the Disposition Date with respect
to any Vehicle but for the implementation of the LKE Program and the
interposition of the Intermediary, such date shall continue to be the “Disposition
Date” with respect to such Vehicle 

 

97

 

notwithstanding the implementation of the LKE Program
and the interposition of the Intermediary.

 

98

 

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

	
   

  	
   

  	
  ARG FUNDING CORP.

  
	
   

  	
   

  	
  By:

  	
  /s/ Jill A. Gordon

  
	
   

  	
   

  	
   

  	
  Name: Jill A. Gordon

  
	
   

  	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
   

  	
   

  	
  not in its individual capacity but solely as

  
	
   

  	
   

  	
   

  	
  Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ John Bobko

  
	
   

  	
   

  	
   

  	
  Name: John Bobko

  
	
   

  	
   

  	
   

  	
  Title: Vice PresidentEXHIBIT 4.10

EXECUTION COPY

EIGHTH AMENDED AND
RESTATED

MASTER COLLATERAL AGENCY AGREEMENT

among

VANGUARD CAR RENTAL USA INC., 

as Master Servicer and as a grantor,

NATIONAL CAR RENTAL FINANCING LIMITED PARTNERSHIP,

as a grantor,

ALAMO FINANCING L.P.,

as a grantor,

CITIBANK, N.A.

not in its individual capacity but solely

as Master Collateral Agent,

VARIOUS FINANCING SOURCES PARTIES HERETO

and

VARIOUS BENEFICIARIES PARTIES HERETO

Dated as of April
13, 2006

 

 

 

TABLE OF CONTENTS

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
  CERTAIN
  DEFINITIONS

  	
  3

  
	
  SECTION 1.1

  	
  Certain
  Definitions

  	
  3

  
	
  SECTION 1.2

  	
  Interpretation
  and Construction

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  MASTER
  COLLATERAL AGENT AS LIENHOLDER FOR THE BENEFICIARIES

  	
  20

  
	
  SECTION 2.1

  	
  Security
  Interest

  	
  20

  
	
  SECTION 2.2

  	
  Designation of
  Beneficiaries

  	
  26

  
	
  SECTION 2.3

  	
  Redesignation of
  Beneficiaries

  	
  29

  
	
  SECTION 2.4

  	
  Master
  Servicer’s Reports

  	
  31

  
	
  SECTION 2.5

  	
  Master
  Collateral Accounts

  	
  32

  
	
  SECTION 2.6

  	
  Certificates of
  Title

  	
  37

  
	
  SECTION 2.7

  	
  Release of
  Collateral

  	
  39

  
	
  SECTION 2.8

  	
  Power of
  Attorney

  	
  41

  
	
  SECTION 2.9

  	
  Notice of
  Liquidation Event of Default and Limited Liquidation Event of Default

  	
  41

  
	
  SECTION 2.10

  	
  Additional
  Reports

  	
  41

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  THE MASTER
  SERVICER

  	
  42

  
	
  SECTION 3.1

  	
  Acceptance of
  Appointment

  	
  42

  
	
  SECTION 3.2

  	
  Master Servicer
  Functions

  	
  42

  
	
  SECTION 3.3

  	
  The Master
  Servicer Not to Resign

  	
  44

  
	
  SECTION 3.4

  	
  Servicing Rights
  of Master Collateral Agent.

  	
  44

  
	
  SECTION 3.5

  	
  Incumbency
  Certificate

  	
  44

  
	
  SECTION 3.6

  	
  Sub-Servicers

  	
  45

  
	
  SECTION 3.7

  	
  Coding
  Procedures Certificate

  	
  45

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  THE MASTER
  COLLATERAL AGENT

  	
  46

  
	
  SECTION 4.1

  	
  Appointment

  	
  46

  
	
  SECTION 4.2

  	
  Representations

  	
  49

  
	
  SECTION 4.3

  	
  Exculpatory
  Provisions

  	
  49

  
	
  SECTION 4.4

  	
  Limitations on
  Duties of the Master Collateral Agent

  	
  50

  
	
  SECTION 4.5

  	
  Resignation and
  Removal of Master Collateral Agent

  	
  53

  

 

i

 

	
  SECTION 4.6

  	
  Qualification of
  Successors to Master Collateral Agent

  	
  54

  
	
  SECTION 4.7

  	
  Merger of the
  Master Collateral Agent

  	
  55

  
	
  SECTION 4.8

  	
  Compensation and
  Expenses

  	
  55

  
	
  SECTION 4.9

  	
  Stamp, Other
  Similar Taxes and Filing Fees

  	
  55

  
	
  SECTION 4.10

  	
  Indemnification

  	
  56

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  MISCELLANEOUS

  	
  56

  
	
  SECTION 5.1

  	
  Amendments,
  Supplements and Waivers

  	
  56

  
	
  SECTION 5.2

  	
  Notices

  	
  58

  
	
  SECTION 5.3

  	
  Headings

  	
  58

  
	
  SECTION 5.4

  	
  Severability

  	
  58

  
	
  SECTION 5.5

  	
  Counterparts

  	
  58

  
	
  SECTION 5.6

  	
  Conflicts with
  Financing Documents; Reservation of Rights

  	
  59

  
	
  SECTION 5.7

  	
  Binding Effect

  	
  59

  
	
  SECTION 5.8

  	
  Governing Law

  	
  59

  
	
  SECTION 5.9

  	
  Effectiveness

  	
  59

  
	
  SECTION 5.10

  	
  Termination of
  Beneficiary

  	
  59

  
	
  SECTION 5.11

  	
  Termination of
  this Agreement

  	
  59

  
	
  SECTION 5.12

  	
  Assignment by
  Financing Sources; Exercise of Rights by Third Parties

  	
  60

  
	
  SECTION 5.13

  	
  No Bankruptcy
  Petition Against Lessor Grantors or Intermediary

  	
  60

  
	
  SECTION 5.14

  	
  Jurisdiction;
  Consent to Service of Process

  	
  60

  
	
  SECTION 5.15

  	
  Waiver of Jury
  Trial

  	
  61

  
	
  SECTION 5.16

  	
  Insurance
  Notification

  	
  62

  
	
  SECTION 5.17

  	
  Waiver of
  Set-Off With Respect to the Lessor Grantors, the Lessee Grantors and Vanguard

  	
  62

  
	
  SECTION 5.18

  	
  Confidentiality

  	
  62

  
	
  SECTION 5.19

  	
  No Recourse

  	
  63

  
	
  SECTION 5.20

  	
  Waiver of
  Set-off

  	
  63

  

 

 

 

ii

 

 

EXHIBITS

	
  Exhibit A-1

  	
   

  	
  Financing Source and Beneficiary Supplement

  
	
  Exhibit A-2

  	
   

  	
  Beneficiary Supplement

  
	
  Exhibit B

  	
   

  	
  Grantor
  Supplement

  
	
  Exhibit C

  	
   

  	
  Master
  Servicer’s Fleet Report

  
	
  Exhibit D

  	
   

  	
  Certificate of
  Title Locations

  
	
  Exhibit E

  	
   

  	
  Power of
  Attorney

  
	
  Exhibit F

  	
   

  	
  List of Joint
  Master Collateral Account Numbers

  
	
  Exhibit G

  	
   

  	
  Post Office Box
  Service Description

  
	
  Exhibit H

  	
   

  	
  Master Servicer’s
  Weekly VIN Report

  
	
  Exhibit I

  	
   

  	
  Form of Termination of
  Power of Attorney

  
	
  Exhibit J

  	
   

  	
  Coding Procedures

  
	
  Exhibit K

  	
   

  	
  Form of Revocation of
  Title Custody

  
	
  Exhibit L

  	
   

  	
  Form of Termination of
  Power of Attorney by Master Collateral Agent

  

 

 

 

iii

EIGHTH AMENDED AND RESTATED

MASTER COLLATERAL AGENCY AGREEMENT

THIS EIGHTH
AMENDED AND RESTATED MASTER COLLATERAL AGENCY AGREEMENT, dated as of April 13, 2006 (as the same may be further amended,
supplemented, restated or otherwise modified from time to time in accordance
with the terms hereof, this “Agreement”), among VANGUARD CAR RENTAL USA
INC., a Delaware corporation (“Vanguard”), as Master Servicer (in such
capacity, the “Master Servicer”), NATIONAL CAR RENTAL FINANCING LIMITED
PARTNERSHIP, a Delaware limited partnership (“NFLP”), as a grantor,
ALAMO FINANCING L.P., a Delaware limited partnership (“Alamo Leasing”),
as a grantor, such other grantors as are added as grantors and identified as “Lessor
Grantors” pursuant to a Grantor Supplement substantially in the form of Exhibit
B hereto (such additional grantors, together with NFLP and Alamo Leasing,
the “Lessor Grantors”),  VANGUARD,
as a grantor, such other grantors as are added as grantors and identified as “Lessee
Grantors” pursuant to a Grantor Supplement substantially in the form of Exhibit
B hereto (such additional grantors, together with Vanguard, the “Lessee
Grantors”), CITIBANK, N.A., a national banking association, not in its
individual capacity but solely as master collateral agent for the Beneficiaries
referred to below (in such capacity, the “Master Collateral Agent”), any
other party which from time to time executes a Financing Source and Beneficiary
Supplement substantially in the form of Exhibit A-1 hereto as a
Financing Source, any other party which from time to time executes a Financing
Source and Beneficiary Supplement substantially in the form of Exhibit A-1
hereto as a Beneficiary, and any other party which from time to time executes a
Beneficiary Supplement substantially in the form of Exhibit A-2 hereto
as a Beneficiary (amending and restating the Seventh Amended and Restated
Master Collateral Agency Agreement, dated as of March 4, 2005, as supplemented
by the Financing Source and Beneficiary Supplements thereto (the “Seventh
Amended and Restated Agreement”), such Seventh Amended and Restated
Agreement having previously amended and restated the Sixth Amended and Restated
Master Collateral Agency Agreement, dated as of October 14, 2003, as
supplemented by the Financing Source and Beneficiary Supplements thereto (the “Sixth
Amended and Restated Agreement”), such Sixth Amended and Restated Agreement
having previously amended and restated the Fifth Amended and Restated Master
Collateral Agency Agreement, dated as of June 11, 2002, as supplemented by the
Financing Source and Beneficiary Supplements thereto (the “Fifth Amended and
Restated Agreement”), such Fifth Amended and Restated Agreement having
previously amended and restated the Fourth Amended and Restated Master
Collateral Agency Agreement, dated as of June 30, 2000, as supplemented by the
Financing Source and Beneficiary Supplements thereto, (the “Fourth Amended
and Restated Agreement”), such Fourth Amended and Restated Agreement having
previously amended and restated the Third Amended and Restated Master
Collateral Agency Agreement, dated as of February 26, 1999, as supplemented by
the Financing Source and Beneficiary Supplements thereto (the “Third Amended
and Restated Agreement”), such Third Amended and Restated Agreement having
previously amended and restated the 

 

Second Amended and Restated Master Collateral Agency Agreement, dated
as of October 29, 1997, as supplemented by the Financing Source and Beneficiary
Supplements thereto (the “Second Amended and Restated Agreement”), such
Second Amended and Restated Agreement having previously amended and restated
the Amended and Restated Master Collateral Agency Agreement, dated as of April
30, 1996, as supplemented by the Financing Source and Beneficiary Supplements
thereto, and supplemented and amended by the Supplement and Amendment to the
Amended and Restated Master Collateral Agency Agreement, dated as of
December  20, 1996 (the “Original
Amended and Restated Agreement”), in each case among the Master Servicer,
the Lessor Grantors, the Lessee Grantors, the Master Collateral Agent, each
Financing Source, each Beneficiary and the other parties thereto.)

BACKGROUND

1.             The parties to the Seventh Amended
and Restated Agreement desire to amend and restate the Sixth Amended and
Restated Agreement in its entirety.

2.             Each of the Lessee Grantors will
from time to time hereafter acquire, and now lease and will hereafter lease,
certain Vehicles for use in its respective daily domestic rental
operations.  Each of the Lessor Grantors
now own and will from time to time acquire, and lease to one or more of the
Lessee Grantors, certain Vehicles for use in their respective daily domestic
rental operations.

3.             Pursuant to the Financing Documents
executed, or to be executed, by the Lessor Grantors, (i) each of the Lessor
Grantors may from time to time extend financing to one or more of the Lessee
Grantors secured by, among other things, certain Vehicles and related rights
and (ii) from time to time any Lessor Grantor may assign to the applicable
Beneficiary, additional rights of such Lessor Grantor and obligations of the
applicable Lessee Grantors under additional Financing Documents.

4.             Pursuant to the Financing Documents
executed, or to be executed, by the Lessor Grantors, (i) each of the Lessor
Grantors may from time to time acquire Vehicles and lease such Vehicles to one
or more of the Lessee Grantors, and (ii) each of the Lessor Grantors is
granting a security interest in the Vehicles acquired by it and related
security to the Master Collateral Agent hereunder for the benefit of the
applicable Beneficiary.

5.             Each of the Lessee Grantors and the
Lessor Grantors may from time to time obtain financing with respect to Vehicles and related
security owned by it
or obtain credit enhancement to support such financing from other Persons
(which Persons providing financing to any of the Lessee Grantors may include
any of the Lessor Grantors) which are or shall hereafter become parties hereto
as Financing Sources or shall hereafter be named as Beneficiaries with respect
to a Financing Source and each Lessee Grantor and Lessor Grantor is granting a
security interest in the Vehicles and related security owned by it to which
such financing relates to the Master Collateral Agent hereunder for the benefit
of the applicable Beneficiary.

 

2

6.             Each of the Lessee Grantors and the
Lessor Grantors (or in the case of Alamo Leasing, the Intermediary on behalf of
Alamo Leasing) may from time to time obtain financing with respect to manufacturer
receivables and related rights owned by it or obtain credit enhancement to
support such financing from other Persons which are or shall hereafter become
parties hereto as Financing Sources or shall hereafter be named as
Beneficiaries with respect to a Financing Source, and following such pledge,
the Master Collateral Agent has agreed to hold the proceeds of any such manufacturer
receivables and related rights for the benefit of such Beneficiary pending
instructions for distribution of such proceeds to such Beneficiary.

7.             Each of the Lessee Grantors and the
Lessor Grantors (or in the case of Alamo Leasing, the Intermediary on behalf of
Alamo Leasing) may from time to time sell manufacturer receivables and related
rights to other Persons which are or shall hereafter become parties hereto as Receivables
Purchaser Beneficiaries, and following such sale, the Master Collateral Agent
has agreed to hold the proceeds of any such manufacturer receivables and
related rights for the benefit of such Receivables Purchaser Beneficiary
pending instructions for distribution of such proceeds to such Receivables
Purchaser Beneficiary.

8.             Citibank, N.A., has agreed to act
as Master Collateral Agent, and in its capacity as Master Collateral Agent to
be named as the lienholder on the Certificates of Title for the Vehicles for
the benefit of the Beneficiaries from time to time.

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

ARTICLE
I

CERTAIN DEFINITIONS

SECTION 1.1                 Certain Definitions.  As used in
this Agreement, capitalized terms have the respective meanings set forth below
or set forth in another section hereof or in any other agreement as
indicated.  Capitalized terms not
otherwise defined herein (i) if defined in the Lessor Grantor Base Indenture
pursuant to which a Series of Notes shall have been issued, shall (except as
otherwise provided in clause (ii) below), with respect to such Series of
Notes, have the meanings assigned to such terms in the Definitions List
attached as Schedule 1 to such Lessor Grantor Base Indenture, as such Lessor
Grantor Base Indenture or Schedule 1 may be amended, supplemented, restated or
otherwise modified from time to time in accordance with the terms of such
Lessor Grantor Base Indenture, (ii) if defined in the Series Supplement
pursuant to which a Series of Notes shall have been issued, shall, with respect
to such Series of Notes, have the meaning specified in such Series Supplement,
as such Series Supplement may be amended, supplemented, restated or otherwise
modified from time to time in accordance with the terms of such Lessor Grantor
Base Indenture and such Series Supplement, or 

 

3

(iii) if not
defined in any Lessor Grantor Base Indenture or Series Supplement, shall, with
respect to any Financing Source, have the meaning assigned to such term in the
Financing Documents for such Financing Source.

“Aggregate
Asset Amount” with respect to any Financing Source, shall have the meaning,
if any, specified in the Financing Documents of such Financing Source.

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

“Alamo Leasing”
means Alamo Financing L.P., a Delaware limited partnership, and its successors
and assigns in accordance with the terms hereof.

“Amortization
Event” with respect to any applicable Financing Source, shall have the
meaning, if any, specified in the Financing Documents of such Financing Source.

“Asset Amount
Deficiency” with respect to any applicable Financing Source, shall have the
meaning, if any, specified in the Financing Documents of such Financing Source.

“Assignment
Agreement” means each agreement with respect to each Manufacturer and its
Manufacturer Program, entered into or to be entered into among a Lessor Grantor
and/or a Lessee Grantor, as assignor, and the Master Collateral Agent, as
assignee, and acknowledged by such Manufacturer, assigning to the Master
Collateral Agent certain of such Lessor Grantor’s and/or such Lessee Grantor’s
right, title and interest in such Manufacturer Program as it relates to
Vehicles purchased from such Manufacturer or from such Manufacturer’s dealers; provided
that such agreement shall specify a Master Collateral Account (and wire
instructions therefor) into which the applicable Manufacturer shall agree to
deposit all amounts owing under its Manufacturer Program (other than Excluded
Payments).

“Authorized
Agents” has the meaning set forth on Section 3.5.

“Authorized
Employee” has the meaning set forth in Section 2.5(c).

“Bankruptcy
Code” means The Bankruptcy Reform Act of 1978, as amended from time to
time, and as codified as 11 U.S.C. Section 101 et seq.

“Beneficiary”
means each person or entity that either (i) has advanced, or that acts for the
benefit of entities that have advanced, funds to a Financing Source to be used
by such Financing Source to fund advances to a Lessee Grantor or a Lessor
Grantor (or in the case of Alamo Leasing, the Intermediary on behalf of Alamo
Leasing) for the purpose of purchasing, financing or refinancing Vehicles or financing
or refinancing Manufacturer Receivables and related security and (a) has been
designated as a Beneficiary pursuant to a Financing Source and Beneficiary
Supplement substantially in 

 

4

the form of Exhibit A-1 hereto or (b) if no Beneficiary is designated
pursuant to such Financing Source and Beneficiary Supplement, the Financing
Source designated in such Financing Source and Beneficiary Supplement or (ii)
is a Receivables Purchaser Beneficiary; provided that for the avoidance
of doubt, each QI Beneficiary and Receivables Pledgee Beneficiary shall
constitute a Beneficiary for all purposes hereunder.

“Beneficiary
Supplement” means a supplement to this Agreement, substantially in the form
of Exhibit A-2 hereto.

“Beneficiary
Agent” means any agent or designee specified by a Beneficiary and appointed
as permitted or described in Section 4.1(h) or as otherwise provided for
in this Agreement.

“Business Day”
means any day that is not (i) a Saturday or Sunday, or (ii) any other day on
which banks are authorized or obligated by law or executive order to close in
New York City, New York, or the city in which the Corporate Trust Office is
located, or (iii) in connection with any Financing Document, any other day not
designated as a “Business Day” in such Financing Document.

“Capitalized
Cost” with respect to a Vehicle, shall have the meaning specified in the Financing
Documents of the related Financing Source.

“Certificate of
Title” means, with respect to each Vehicle, the certificate of title
applicable to such Vehicle duly issued in accordance with the certificate of
title act or statute of the jurisdiction applicable to such Vehicle.

“Closing Date”
with respect to the Financing Documents of any applicable Financing Source,
shall have the meaning specified in such Financing Documents.

“Coding
Procedures Certificate” has the meaning set forth in Section 3.7.

“Corporate
Trust Office” means the principal corporate trust office of the Master
Collateral Agent, located at 388 Greenwich Street, 14th Floor, New York, New
York 10013 Attention:  Agency and Trust
Department, or at such other address as the Master Collateral Agent may
designate from time to time by notice to Vanguard.

“Custody Agreement” has the meaning set forth in Section 3.6.

“Custody
Revocation Trigger Event” with respect to any applicable Financing Source,
shall have the meaning, if any, specified in the Financing Documents of such
Financing Source.

“Default”
means any event of default or amortization event or any default, event, act or
condition which, with the lapse of time or notice or both, would become an
event of default or amortization event (other than any scheduled amortization
event) under any of the Financing Documents.

 

5

 

“Depreciation
Charge” with respect to any Vehicle which is a Related Vehicle of a
Beneficiary, shall have the meaning specified in the Financing Documents
related to such Beneficiary; and if Depreciation Charge is not defined in such
Financing Documents, “Depreciation Charge” means, (a) with respect to any
Vehicle covered by a Manufacturer Program, the scheduled daily depreciation
charge set forth by the Manufacturer in its Manufacturer Program with respect
to such Vehicle calculated as set forth in such Manufacturer Program and (b)
with respect to any Vehicle not covered by a Manufacturer Program, the
scheduled daily depreciation charge for such Vehicle set forth by the Master
Servicer in the schedule of estimated daily depreciation prepared by the Master
Servicer for such Vehicle.

“Designated
Vehicle” means a Vehicle owned by a Lessor Grantor or a Lessee Grantor with
respect to which the Master Servicer, such Lessee Grantor or Lessor Grantor has
notified the Master Collateral Agent in writing that such Vehicle has been
designated to be exchanged for one or more Replacement Vehicles or released for
exchange pursuant to an Exchange Agreement.

“Designation
Report” means, as of any date, the most recent to be delivered to the
Master Collateral Agent of the most recent Weekly VIN Report or the most recent
Fleet Report; provided that the Designation Report shall be modified by
each Redesignation Report and Reassignment Report delivered to the Master
Collateral Agent on or prior to such date but subsequent to the date as of
which such Weekly VIN Report or Fleet Report speaks.

“Disposition
Agent” has the meaning set forth in Section 4.1(h).

“Disposition Agent Agreement” means that certain disposition agent
agreement, dated as of October 14, 2003, among Vanguard, the various
Beneficiaries and Financing Sources party thereto, Alamo Leasing, NFLP and
Remarketing Services of America Inc., as disposition agent, and agreed to and
acknowledged by the Master Collateral Agent, as the same may be amended,
restated, modified or supplemented from time to time in accordance with its
terms.

“Dispute Period”
has the meaning set forth in Section 2.2.

“Eligible
Receivables” with respect to any applicable Financing Source, shall have
the meaning set forth in the related Financing Documents.

“Escrow
Agreement” means the Amended and Restated Escrow Agreement, dated as of April 13, 2006, among the Intermediary,
JPMorgan Chase Bank, N.A., Alamo Leasing and Vanguard, as the same may amended,
supplemented, restated or otherwise modified from time to time in accordance
with its terms.

“Exchange
Agreement” means an agreement among a Lessor Grantor, a Lessee Grantor and
the related Qualified Intermediary which provides for the assignment by such
Lessor Grantor or such Lessee Grantor to the Qualified Intermediary of (i) 

 

6

 

Exchanged Vehicles, (ii) all Exchanged Vehicle Repurchase Rights, (iii)
all right, title and interest of a Lessor Grantor or a Lessee Grantor in, to
and under any contracts for the sale of any Exchanged Vehicle and (iv) all
right, title and interest of such Lessor Grantor or Lessee Grantor in, to and under
any contracts for the purchase of Replacement Vehicles; provided that
any such Exchange Agreement covering Vehicles financed under any Financing
Documents will not become effective with respect to Vehicles financed under
such Financing Documents until such Lessor Grantor and such Lessee Grantor
obtain (x) such consents and/or Rating Agency confirmations as may be required
under any Financing Documents, and (y) opinions of counsel with respect to
perfection, priority and non-consolidation in substantially the same form as
those delivered as of the Closing Date under such Financing Documents.

“Exchanged
Vehicle” means a Designated Vehicle that (i) (a) if subject to a
Manufacturer Program, has been accepted for repurchase or auction by the
Manufacturer under the related Manufacturer Program or sold to a third party or
(b) if not subject to a Manufacturer Program, has been sold to a third party,
(ii) with respect to which the release of the Lien of the Master Collateral
Agent thereon would not cause an Asset Amount Deficiency to exist or an
Amortization Event to occur under such Financing Documents and (iii) with
respect to which the Lien of the Master Collateral Agent has been released in
accordance with Section 2.7 of this Agreement; provided that
until the applicable Beneficiary provides written notice to the contrary to the
Master Collateral Agent, no Vehicle that is a Related Vehicle with respect to
such Beneficiary shall be an Exchanged Vehicle.

“Exchanged
Vehicle Repurchase Rights” means, with respect to each Exchanged Vehicle
that is subject to a Manufacturer Program, all right, title and interest of the
applicable Lessor Grantor or the applicable Lessee Grantor in, to and under
each Manufacturer Program associated with any Exchanged Vehicles, to the extent
such right, title and interest relates to such Exchanged Vehicles, including
any amendments thereof and all monies due and to become due in respect of such
Exchanged Vehicle under or in connection with such Manufacturer Program,
whether payable as Vehicle repurchase prices, auction sales proceeds, fees,
expenses, costs, indemnities, insurance recoveries, damages for breach of the
Manufacturer Program or otherwise and all rights to compel performance and
otherwise exercise remedies thereunder.

“Excluded Payments”
means (a) the following amounts payable to any of the Lessor Grantors or Lessee
Grantors pursuant to the Manufacturer Programs: (i) all incentive payments
payable to any of the Lessor Grantors or Lessee Grantors in respect of
purchases and other dispositions of Vehicles under the Manufacturer Programs
(but not any amounts payable to any of the Lessee Grantors or Lessor Grantors
by a Manufacturer as an incentive for selling Program Vehicles outside of the
related Manufacturer Program), (ii) all amounts payable to any of the Lessor
Grantors or Lessee Grantors as compensation for the preparation by any of the
Lessor Grantors or Lessee Grantors of newly delivered vehicles under the
Manufacturer Programs and (iii) all amounts payable to any of the Lessor
Grantors or Lessee Grantors in reimbursement for warranty work performed by any
of the Lessor Grantors or Lessee Grantors on the 

 

7

Vehicles under the Manufacturer Programs, (b) proceeds derived from the
rental of Vehicles to customers of any Lessee Grantor in the ordinary course of
such Lessee Grantor’s domestic daily rental businesses and (c) proceeds derived
from any permitted sublease under any Related Lease.

“Fifth Amended
and Restated Agreement” has the meaning set forth in the preamble hereto.

“Financing
Documents” means, (a) with respect to a Financing Source or its Related
Beneficiary, any and all agreements, indentures, instruments and contracts (including,
without limitation, any Master Exchange Financing Agreements) (i) evidencing or
related to any financing arrangement between any of the Lessor Grantors (or in
the case of Alamo Leasing, the Intermediary on behalf of Alamo Leasing) and/or
any of the Lessee Grantors and such Financing Source (and/or such Related
Beneficiary) or between such Financing Source and such Related Beneficiary,
(ii) providing for the making or credit enhancing of loans or advances to or at
the direction of any of the Lessor Grantors (or in the case of Alamo Leasing,
the Intermediary on behalf of Alamo Leasing) and/or any of the Lessee Grantors
from such Financing Source or to such Financing Source from the Related
Beneficiary, (iii) providing for the lease to any of the Lessee Grantors of
Related Vehicles, or (iv) providing for any other arrangement for the financing
of such Financing Source’s Related Vehicles, in any such case, as such
agreements, indentures, instruments, contracts, leases and other arrangements
are identified in the Financing Source and Beneficiary Supplement with respect
to such Financing Source and as such agreements, indentures, instruments,
contracts, leases and other arrangements may be amended, supplemented,
restated, extended or otherwise modified from time to time in accordance with
the terms thereof and (b) with respect to a Receivables Purchaser Beneficiary,
any and all agreements, instruments and contracts evidencing or related to the
sale of Vehicle Repurchase Rights to such Receivables Purchaser Beneficiary, in
any such case, as such agreements, instruments, and contracts, are identified
in the Beneficiary Supplement with respect to such Receivables Purchaser
Beneficiary and as such agreements, instruments, and contracts, may be amended,
supplemented, restated, extended or otherwise modified from time to time in
accordance with the terms thereof.

“Financing
Source” means each person or entity that (i) (A) has advanced funds, or is
a trustee for any person or entity that has advanced funds, to a Lessor Grantor
or Lessee Grantor (or in the case of Alamo Leasing, the Intermediary on behalf
of Alamo Leasing) to (1) be used by such Lessor Grantor (or in the case of
Alamo Leasing, the Intermediary on behalf of Alamo Leasing) or Lessee Grantor
to purchase, finance or refinance Vehicles that are currently owned, or will be
owned upon purchase, by such Lessor Grantor or Lessee Grantor or (2) finance or
refinance Eligible Receivables and related security or (B) solely with respect
to a Manufacturer, has otherwise extended credit to a Lessor Grantor or Lessee
Grantor in connection with the purchase of Vehicles; and (ii) has been
designated as a Financing Source pursuant to a Financing Source and Beneficiary
Supplement.

 

8

 

“Financing
Source and Beneficiary Supplement” means a supplement to this Agreement,
substantially in the form of Exhibit A-1 hereto.

“Fleet Report”
means the monthly report substantially in the form of Exhibit C hereto required
to be delivered by the Master Servicer to the Master Collateral Agent pursuant
to Section 2.4(a).

“Fourth Amended
and Restated Agreement” has the meaning set forth in the preamble hereto.

“GM Freeze
Agreement” means that certain agreement among General Motors Corporation,
Vanguard and certain other parties, dated July 16, 2003, pursuant to which
General Motors Corporation has agreed, among other things, to make certain
concessions with respect to the terms under which it will repurchase Vehicles
under its Manufacturer Program, as such agreement has been amended as of the date
hereof and may be further amended, restated, modified or supplemented from time
to time.

“Grantor”
means any Lessee Grantor or Lessor Grantor.

“Grantor
Supplement” means a supplement to this Agreement, substantially in the form
of Exhibit B hereto.

“Guaranteed
Depreciation Program” means a guaranteed depreciation program pursuant to
which a Manufacturer has agreed with any of the Lessee Grantors or Lessor
Grantors to (a) cause certain Vehicles manufactured by it or one of its
Affiliates that are turned back during the specified Repurchase Period to be
sold at Auction by an auction dealer, (b) cause the proceeds of any such sale
to be paid to any of the Lessee Grantors or Lessor Grantors, as applicable, by
such auction dealer after such sale and (c) pay to any of the Lessee Grantors
or Lessor Grantors, as applicable, the excess, if any, of the guaranteed
payment amount with respect to any such Vehicles calculated as of the
disposition date or turnback date thereof (as defined or otherwise specified in
the Financing Documents of the related Financing Source) in accordance with the
provisions of such guaranteed depreciation program over the amount paid to any
such Lessee Grantor or Lessor Grantor, as applicable, by an auction dealer
pursuant to clause (b) above.

“Incumbency
Certificate” has the meaning set forth in Section 3.5.

“Independent
Public Accountants” means any firm of nationally recognized independent
public accountants reasonably acceptable to a Record Beneficiary and a
disputing Beneficiary in connection with a Reassignment Claim.

“Ineligible
Asset Amount” with respect to any applicable Financing Source, shall have
the meaning specified in the Financing Documents of such Financing Source.

 

9

 

“Initial Fleet”
with respect to any applicable Financing Source, shall have the meaning
specified in the Financing Documents of such Financing Source.

“Intermediary”
means the Person satisfying the requirements for a “qualified intermediary”
within the meaning of Section 1031 of the Code and the treasury regulations
thereunder and acting pursuant to the Master Exchange Agreement, which
initially shall be Car for a Car, Corp., a Delaware corporation.

“Investment
Letters” has the meaning set forth in Section 2.5(f).

“Joint Master
Collateral Accounts” has the meaning set forth in Section 2.5(a)(I).  Each Joint Master Collateral Account shall
constitute a Joint Collection Account under the Master Exchange Agreement.

“Lease”
means a Master Motor Vehicle Lease and Servicing Agreement (inclusive of any
annexes thereto), under which a Lessor Grantor is the lessor and/or one or more
Lessee Grantors is the lessee, that constitutes security for the obligations
owing to a Financing Source, as the same may be amended, supplemented, or
otherwise modified from time to time in accordance with the terms thereof.

“Lessee Grantor
Master Collateral” has the meaning set forth in Section 2.1(a).

“Lessee
Grantors” has the meaning set forth in the preamble hereto.

“Lessor Grantor
Base Indenture” means any base indenture between a Lessor Grantor and a
trustee, as the same may be amended, supplemented or otherwise modified from
time to time in accordance with its terms, exclusive of Series Supplements
creating a new series of rental car asset backed notes.

“Lessor Grantor
Master Collateral” has the meaning set forth in Section 2.1(b).

“Lessor
Grantors” has the meaning set forth in the preamble hereto.

“Limited
Liquidation Event of Default” with respect to any applicable Financing
Source, shall have the meaning, if any, specified in the Financing Documents of
such Financing Source.

“Liquidation
Event of Default” with respect to any applicable Financing Source, shall
have the meaning, if any, specified in the Financing Documents of such
Financing Source.

“LKE Program”
is defined in the recitals to the Master Exchange Agreement.

 

10

 

“LKE
Reallocation Trigger Event” means (i) a
QI Parent Downgrade Event has occurred and continued through 45 consecutive
days, (ii) an Event of Bankruptcy has occurred with respect to the Intermediary
or (iii) the LKE Program is no longer in effect, as determined by the Master
Servicer or Alamo Leasing in their sole discretion, unless in the case of clauses
(i) or (ii) above (a) the Intermediary has been replaced, subject
with respect to each Lender (as defined in the Master Exchange Agreement), to
any restrictions to such replacement set forth in the Financing Documents of
such Lender or (b) the Rating Agency Confirmation Condition with respect
to each Lender has been satisfied with respect to any alternative arrangement
relating to the Intermediary following the occurrence of an LKE Reallocation
Trigger Event.

“Lockbox”
means a post office box maintained in the sole name of the Master Collateral
Agent and with respect to which the Master Collateral Agent is the “box
customer” within the meaning of Exhibit G hereto.

“Manufacturer”
means a manufacturer of passenger automobiles and/or light trucks.

“Manufacturer
Program” means any Repurchase Program or Guaranteed Depreciation Program.

“Master
Collateral” means the Unpledged Master Collateral and the Pledged Master
Collateral.

“Master
Collateral Accounts” has the meaning set forth in Section 2.5(a).

“Master
Collateral Agent” has the meaning set forth in the preamble hereto, and
includes any successor to Citibank, N.A., in its capacity as Master Collateral
Agent, in accordance with the terms hereof.

“Master
Exchange Agreement” means the Amended and Restated Master Exchange
Agreement, dated as of April 13, 2006 among the Intermediary, Alamo Leasing and
Vanguard as the same may amended, supplemented, restated or otherwise modified
from time to time in accordance with its terms; provided, however that
the Master Exchange Agreement does not constitute an Exchange Agreement.

“Master Exchanged Vehicle Repurchase Rights” means, with respect
to Relinquished Property that arose from a Vehicle subject to a Manufacturer
Program, all right, title and interest of Alamo Leasing in, to and under each
Manufacturer Program associated with such Relinquished Property, solely to the
extent such right, title and interest relate to such Relinquished Property,
including any amendments thereof and all monies due and to become due in
respect of such Relinquished Property under or in connection with such
Manufacturer Program, whether payable as Vehicle repurchase prices, auction
sales proceeds, fees, expenses, costs, indemnities, insurance recoveries,
damages for breach of the Manufacturer Program or otherwise and all rights to
compel performance and otherwise exercise remedies thereunder.

 

11

 

“Master Exchange Financing Agreement” means an agreement entered
into between the Intermediary acting in its capacity as the qualified
intermediary of Alamo Leasing and the Master Exchange Lender pursuant to which
the Master Exchange Lender agrees to finance the purchase of Replacement
Property by the Intermediary on behalf of Alamo Leasing, which financing is
non-recourse to Alamo Leasing and the Intermediary and is secured by Master
Exchanged Vehicle Repurchase Rights arising from time to time; provided
that any such Master Exchange Financing Agreement will not become effective
with respect to the Related Vehicles of a Financing Source and Beneficiary until
satisfaction of (x) the Rating Agency Confirmation Condition with respect to such
Financing Source and Beneficiary and any consents required under the Financing
Documents related to such Financing Source and Beneficiary and (y) any other
conditions with respect to entry into such Master Exchange Financing Agreement
specified in the Related Financing Document for such Financing Source and
Beneficiary.

“Master Exchange Lender” means a provider of financing to the
Intermediary acting in its capacity as the qualified intermediary of Alamo
Leasing for the purchase of Replacement Property.

“Master
Servicer” means Vanguard, in its capacity as master servicer hereunder, and
any successor thereto in such capacity, and, to the extent that the Master
Collateral Agent shall have assumed any duties and obligations of the Master
Servicer pursuant to this Agreement, “Master Servicer” shall, to such extent,
include the Master Collateral Agent.

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

“Net Book Value”
means, at any time with respect to each Related Vehicle, such Vehicle’s
Capitalized Cost minus the aggregate Depreciation Charges, if any, accrued for
such Vehicle through the last day of the Related Month, as more specifically
calculated in accordance with the Financing Documents for the related Financing
Source.

“New Lockboxes”
has the meaning set forth in Section 2.6(b).

“NFLP”
means National Car Rental Financing Limited Partnership, a Delaware limited
partnership, and its successors and assigns in accordance with the terms
hereof.

“Notes”
means any of the Rental Car Asset Backed Notes issued by NFLP, Alamo Leasing,
or another Lessor Grantor pursuant to its Lessor Grantor Base Indenture and the
related Series Supplement.

“Non-Qualified
Funds” is defined in Section 1.1 of the Master Exchange Agreement.

 

12

 

“Original
Amended and Restated Agreement” has the meaning set forth in the preamble
hereto.

“Permitted
Investments” means negotiable instruments or securities represented by
instruments in bearer or registered or in book entry form which evidence (i)
obligations the full and timely payment of which is to be made by or is fully
guaranteed by the United States of America; (ii) demand deposits, time deposits
in, or certificates of deposit issued by, any depositary institution or trust
company incorporated under the laws of the United States of America or any
state thereof and subject to supervision and examination by Federal or State
banking or depositary institution authorities; provided, however, that at the
time of the investment or contractual commitment to invest therein, the
certificates of deposit or short-term deposits, if any, or long-term unsecured
debt obligations (other than such obligation whose rating is based on
collateral or on the credit of a Person other than such institution or trust
company) of such depositary institution or trust company shall have a credit
rating from Standard & Poor’s of A-1+ and from Moody’s of P-1, in the case of
certificates of deposit or short-term deposits, or a rating from Standard &
Poor’s not lower than AA- or from Moody’s not lower than Aaa, in the case of
long-term unsecured debt obligations; (iii) commercial paper having, at
the time of the investment or contractual commitment to invest therein, a
rating from Standard & Poor’s of A-1+ and from Moody’s of P-1; (iv) demand
deposits or time deposits which are fully insured by the Federal Deposit
Insurance Corporation; (v) bankers’ acceptances issued by any depositary
institution or trust company described in clause (ii) above; (vi)
investments in money market funds rated AAm or AAmG by Standard & Poor’s or
otherwise approved in writing by Standard & Poor’s and otherwise approved
in writing by Moody’s; (vii) Eurodollar time deposits having a credit rating
from Standard & Poor’s of A-1+ and from Moody’s of P-1; (viii) repurchase
agreements involving any of the Permitted Investments described in clauses
(i) and (vii) above and the certificates of deposit described in clause
(ii) above which are entered into with a depository institution or trust
company, having a commercial paper or short-term certificate of deposit rating
of A-1+ by Standard & Poor’s and P-1 by Moody’s; and (ix) any other
instruments or securities, if the Rating Agencies confirm in writing that such
investment in such instruments or securities will not adversely affect any
ratings with respect to any Series of Notes or, if such Series of Notes are not
rated, the applicable Beneficiary shall have consented.

“Pledged Master
Collateral” has the meaning set forth in Section 2.1(b).

“Post LKE
Reallocation Master Collateral Accounts” has the meaning set forth in Section
2.5(a)(II).

“pro rata”
means, at any date of determination as to any interest or amount with respect
to (i) any Beneficiary (other than a Receivables Purchaser Beneficiary), a
fraction the numerator of which is the then aggregate indebtedness and other accrued
monetary obligations of each of the Lessee Grantors and each of the Lessor Grantors
(or in the case of Alamo Leasing, the Intermediary acting on behalf of Alamo
Leasing), as applicable, then owing to the Financing Source and relating to
such Beneficiary as 

 

13

specified in a Financing Source and Beneficiary Supplement or (ii) any Receivables
Purchaser Beneficiary, a fraction the numerator of which is the then aggregate
outstanding amount of the Manufacturer Receivables purchased by such Receivables
Purchaser Beneficiary through such date of determination and in each case the
denominator of which is the sum of the then aggregate indebtedness and other
accrued monetary obligations of each of the Lessee Grantors and each of the
Lessor Grantors, as applicable, then owing to all Financing Sources as
specified under all Financing Source and Beneficiary Supplements and the then aggregate
outstanding amount of the Manufacturer Receivables purchased by all such Receivables
Purchaser Beneficiaries through such date of determination; provided, however,
that if a Beneficiary must return any amount paid with respect to such
obligations for any reason, such returned amounts shall be reinstated as
obligations for purposes of the foregoing calculation.

“QI Beneficiary”
means each Beneficiary acting on behalf of a Financing Source that has advanced
the Intermediary funds the repayment of which is secured by Master Exchanged
Vehicle Repurchase Rights under a Master Exchange Financing Agreement and has
been designated as a QI Beneficiary pursuant to a Financing Source and
Beneficiary Supplement.

“QI Parent
Downgrade Event” shall mean, on any date of determination, either (i)
JPMorgan Chase Bank, N.A. (or any entity that is a successor to JPMorgan Chase
Bank, N.A. as the ultimate parent of the Intermediary) shall have a short-term
credit rating of below “A-1+” from S&P or below “P-1” from Moody’s or (ii)
if at any time JPMorgan Chase Bank, N.A. (or any entity that is a successor
to  JPMorgan Chase Bank, N.A. as the
ultimate parent of the Intermediary) does not have a short-term credit rating,
JPMorgan Chase Bank, N.A. (or any entity that is a successor to JPMorgan Chase
Bank, N.A. as the ultimate parent of the Intermediary) shall have a long-term
credit rating of below “AA-” from S&P or below “Aa3” from Moody’s.

“Qualified
Institution” means a depositary institution or trust company (which may
include the Master Collateral Agent) organized under the laws of the United
States of America or any one of the states thereof or the District of Columbia;
provided, however, that at all times such depositary institution
or trust company is a member of the Federal Deposit Insurance Corporation and
has a short-term debt rating of A-1+ by Standard & Poor’s and P-1 by Moody’s.

“Qualified
Intermediary” means, with respect to a Financing Source, a party,
designated in an Exchange Agreement as an intermediary for exchanges of
Vehicles by the related Lessor Grantor or Lessee Grantor pursuant to such
Exchange Agreement.

“Rating
Agencies” means any rating agency, to the extent such agency, at the
request of any of the Lessee Grantors or any of the Lessor Grantors pursuant to
the applicable Financing Documents, is then rating the outstanding securities
or indebtedness of any Financing Source.

 

14

“Rating Agency
Confirmation Condition” with respect to any Financing Source, shall have
the meaning, if any, specified in the Financing Documents of such Financing
Source.

“Reassignment”
has the meaning set forth in Section 2.2.

“Reassignment
Claim” has the meaning set forth in Section 2.2.

“Reassignment
Report has the meaning set forth in Section 2.2.

“Receivables
Pledgee Beneficiary” means each Beneficiary acting on behalf of a Financing
Source that has advanced a Lessee Grantor or a Lessor Grantor funds the
repayment of which is secured by Vehicle Repurchase Rights that constitute
Unpledged Master Collateral and has been designated as a Receivables Pledgee
Beneficiary pursuant to a Financing Source and Beneficiary Supplement.

“Receivables
Purchaser Beneficiary” means each person or entity that has purchased
Vehicle Repurchase Rights from a Lessee Grantor or a Lessor Grantor (or the
Intermediary on behalf of Alamo Leasing) and has been designated as a
Receivables Purchaser Beneficiary pursuant to a Beneficiary Supplement.

“Record
Beneficiary” has the meaning set forth in Section 2.2.

“Redesignation
Report” has the meaning set forth in Section 2.3.

“Refinanced
Vehicles” with respect to any applicable Financing Source, shall have the
meaning specified in the Financing Documents of such Financing Source.

“Refinanced
Vehicle Schedule” with respect to any applicable Financing Source, shall
have the meaning, if any, specified in the Financing Documents of such
Financing Source.

“Related
Beneficiary” means, with respect to each Financing Source designated
pursuant to a Financing Source and Beneficiary Supplement, the Beneficiary
designated as such in such Financing Source and Beneficiary Supplement or, if
no Beneficiary is designated, such Financing Source.

“Related
Financing Source” means, with respect to each Beneficiary designated
pursuant to a Financing Source and Beneficiary Supplement, the Financing Source
designated as such in such Financing Source and Beneficiary Supplement.

“Related Lease”
means, with respect to a Financing Source or Beneficiary, each Lease specified
as a Financing Document in the Financing Source and Beneficiary Supplement
designating such Financing Source or Beneficiary as such.

“Related Master
Collateral” means, (a) with respect to each Beneficiary designated as such
pursuant to a Financing Source and Beneficiary Supplement, except 

 

15

for QI Beneficiaries,
Receivables Purchaser Beneficiaries or Receivables Pledgee Beneficiaries, all
Related Vehicles with respect to such Beneficiary and all Pledged Master Collateral relating to such
Related Vehicles, including, but not limited to, the following:

(i)            all
rights under each Manufacturer Program associated with such Related Vehicles to
the extent such rights relate to such Related Vehicles, including any
amendments thereof and all monies due and to become due in respect of such
Related Vehicles under or in connection with each such Manufacturer Program
whether payable as Vehicle repurchase prices, auction sales proceeds,
guaranteed depreciation payments, fees, expenses, costs, indemnities, insurance
recoveries, damages for breach of the Manufacturer Program or otherwise and all
rights to compel performance and otherwise exercise remedies thereunder;

(ii)           the
Post LKE Reallocation Master Collateral Accounts and all funds from time to
time deposited or held therein;

(iii)          all
investments of funds on deposit in the Post LKE Reallocation Master Collateral
Accounts, and all certificates, instruments and documents related to such
investments;

(iv)          Eligible
Receivables financed or refinanced by a Lessor Grantor with proceeds obtained
from the Related Financing Source;

(v)           all
sale or other disposition proceeds payable by any Person in respect of the disposition
of such Related Vehicles;

(vi)          all
payments under insurance policies (whether or not the Master Collateral Agent
is named as the loss payee thereof) or any warranty payable by reason of loss
or damage to, or otherwise with respect to, any of such Related Vehicles;

(vii)         the
Master Exchange Agreement and the Escrow Agreement, including any amendments
thereof, all monies due and to become due in respect of the Related Vehicles
thereunder, whether amounts payable by the Intermediary to, or on behalf of,
any Lessor Grantor from the accounts maintained pursuant to this Agreement, the
Master Exchange Agreement and the Escrow Agreement or payable as damages for
breach of the Master Exchange Agreement, the Escrow Agreement or otherwise, and
all other property payable by the Intermediary to, or on behalf of, any Lessor
Grantor thereunder and all rights to compel performance and otherwise exercise
remedies thereunder; provided, however, that in the case of any
funds held in any of the accounts maintained pursuant to this Agreement, the
Master Exchange Agreement and the Escrow Agreement that constitute Relinquished

 

16

Property
Proceeds, such funds shall not constitute Related Master Collateral until such
funds become Non-Qualified Funds; and

(viii)        any
and all products and proceeds of any of the foregoing;

provided that, in no event shall any of the
foregoing include any right, title or interest in Relinquished Property Rights,
Excluded Payments or Unpledged Master Collateral, and in the case of
Relinquished Property Rights and Unpledged Master Collateral from the time such
Relinquished Property Rights or Unpledged Master Collateral become Relinquished
Property Rights or Unpledged Master Collateral as a result of the assignment of
such Relinquished Property Rights to the Intermediary or the pledge or sale of
such Unpledged Master Collateral to the related Receivables Purchaser
Beneficiary, Receivables Pledgee Beneficiary or QI Beneficiary, as applicable;

(b) with respect to each Receivables
Purchaser Beneficiary designated as such pursuant to a Beneficiary Supplement,
all Vehicle Repurchase Rights purchased by such Receivables Purchaser
Beneficiary and any and all products and proceeds thereof, but solely to the
extent that the proceeds of such Vehicle Repurchase Rights are being deposited
into the Master Collateral Account;

(c) with respect to each
QI Beneficiary designated as such pursuant to a Financing Source and
Beneficiary Supplement, all Master Exchanged Vehicle Repurchase Rights securing
advances made by the Related Financing Source pursuant to the Master Exchange
Financing Agreement to which it is a party and any and all products and
proceeds thereof; and

(d) with respect to each Receivables
Pledgee Beneficiary designated as such pursuant to a Financing Source and
Beneficiary Supplement, all Vehicle Repurchase Rights securing advances made by
the Related Financing Source and any and all products and proceeds thereof.

“Related Month”
means, with respect to any date, the most recently ended calendar month.

“Related
Vehicles” means, with respect to any Beneficiary designated as such
pursuant to a Financing Source and Beneficiary Supplement, (a) all Vehicles
owned by a Lessor Grantor or Lessee Grantor, as applicable, and purchased,
financed or refinanced, in whole or in part, by such Lessor Grantor or Lessee
Grantor with proceeds obtained from the Related Financing Source or a
Manufacturer providing credit for the purchase of Vehicles and (b) all other
Vehicles owned by such Lessor Grantor or Lessee Grantor and leased under the
Related Lease (including all redesignations, substitutions, replacements and
exchanges with respect to such Vehicles and all Reassignments made for the
benefit of such Beneficiary), including, in each case, all Certificates of
Title with respect thereto.

 

17

“Relinquished
Property Proceeds” is defined in Section 1.1 of the Master Exchange
Agreement.

“Relinquished
Property Rights” means, with respect to each Relinquished Vehicle, the
related Relinquished Property Proceeds, together with respect to each
Relinquished Vehicle that is subject to a Manufacturer Program, all right,
title and interest of Alamo Leasing in, to and under each Manufacturer Program
associated with any Relinquished Vehicles, to the extent such right, title and
interest relates to such Relinquished Vehicles, including any amendments
thereof.

“Relinquished
Vehicle” means a Vehicle that is “Relinquished Property” under and as
defined in Section 1.1 of the Master Exchange Agreement, and with
respect to which, Alamo Leasing has directed the Intermediary to sell such
Vehicle on the date such vehicle becomes Relinquished Property.

“Replacement
Property” is defined in Section 1.1 of the Master Exchange
Agreement.

“Replacement
Vehicle” means an Eligible Vehicle (i) which is owned by a Lessor Grantor
or Lessee Grantor, (ii) which has been delivered to a Lessor Grantor or a
Lessee Grantor as provided in or pursuant to the Related Lease, (iii) with
respect to which the Master Collateral Agent is noted as the first lienholder
on the Certificate of Title therefor, (iv) which is subject to no Liens other
than the Lien of the Master Collateral Agent and (v) which (a) has been
acquired pursuant to an Exchange Agreement as a Replacement Vehicle for a
Designated Vehicle or Designated Vehicles and (b) has been designated on the
Master Servicer’s computer system as a Related Vehicle with respect to the
Beneficiary to which the related Designated Vehicle or Designated Vehicles are
designated.

“Repurchase
Period” means, with respect to any Vehicle covered by a Manufacturer
Program, the period during which such Vehicle may be turned in to the
Manufacturer thereof or its agent or designee for repurchase or sale at Auction
pursuant to the applicable Manufacturer Program.

“Repurchase
Program” means a program pursuant to which a Manufacturer has agreed with
any of the Lessee Grantors or any of the Lessor Grantors to repurchase certain
Vehicles manufactured by it or one of its Affiliates during the specified
Repurchase Period (and with respect to the program offered by General Motors
Corporation, as such program is modified by
the GM Freeze Agreement with respect to its 2004, 2005 and 2006 model
year Vehicles).

“Required Asset
Amount” with respect to any applicable Financing Source, shall have the
meaning, if any, specified in the Financing Documents of such Financing Source.

 

18

“Required
Enhancement Amount” with respect to any applicable Financing Source, shall
have the meaning, if any, specified in the Financing Documents of such
Financing Source.

“Second Amended
and Restated Agreement” has the meaning set forth in the preamble hereto.

“Series of
Notes” means any of the series of Rental Car Asset Backed Notes issued by
any Lessor Grantor pursuant to any Lessor Grantor Base Indenture and the
related Series Supplement.

“Series
Supplement” means a supplement to any of the Lessor Grantor Base Indentures
complying (to the extent applicable) with the terms of such Lessor Grantor Base
Indenture.

“Seventh
Amended and Restated Agreement” has the meaning set forth in the preamble
hereto.

“Sixth Amended
and Restated Agreement” has the meaning set forth in the preamble hereto.

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

“Sub-Servicer”
has the meaning set forth in Section 3.6.

“Third Amended
and Restated Agreement” has the meaning set forth in the preamble hereto.

“Trustee”
means, initially, The Bank of New York, as trustee under the applicable Lessor
Grantor Base Indenture and any related Series Supplement, or any successor
trustee thereunder, and any other entity appointed as trustee under a Lessor
Grantor Base Indenture and the related Series Supplement.

“Uniform
Commercial Code” means the Uniform Commercial Code as in effect from time
to time in the specified jurisdiction.

“Unpledged
Master Collateral” means all Vehicle Repurchase Rights (i) purchased by a Receivables
Purchaser Beneficiary (from the time such Vehicle Repurchase Rights are so
purchased and the existing lien of the Master Collateral Agent is released
pursuant to Section 2.7(d) hereof), but solely to the extent that the
proceeds of such Vehicle Repurchase Rights payable by the related Manufacturer are
required to be deposited into the Master Collateral Account or (ii) pledged to
a Financing Source or its Related Beneficiary (and expressly not pledged to the
Master Collateral Agent) pursuant to a Master Exchange Financing Agreement or
otherwise (from the time such Vehicle Repurchase Rights are so pledged and the
existing lien of the Master Collateral Agent is released pursuant to Section
2.7(d) hereof), but solely to the extent that the proceeds of 

 

19

such Vehicle Repurchase Rights payable by the related Manufacturer are
required to be deposited into the Master Collateral Account and, in each case
any and all products and proceeds of any of the foregoing.

“Vanguard”
means Vanguard Car Rental USA Inc., a Delaware corporation, and its successors
and assigns in accordance with the terms hereof.

“Vehicle”
means each passenger automobile or light truck owned by any of the Lessee
Grantors or any of the Lessor Grantors and purchased, financed or refinanced by
any of the Lessee Grantors or any of the Lessor Grantors with proceeds obtained
from a Financing Source (or from a Manufacturer providing credit for the
purchase of Vehicles) and all other Vehicles owned by such Lessee Grantor or
Lessor Grantor and leased under a Lease (including all redesignations,
substitutions, replacements and exchanges with respect to such Vehicles and all
Reassignments made for the benefit of any Beneficiary), together, in each case,
with any replacement parts and repairs thereto.

“Vehicle Order”
with respect to any applicable Financing Source, shall have the meaning, if
any, specified in the Financing Documents of such Financing Source.

“Vehicle
Repurchase Rights” means, with respect to a Vehicle subject to a
Manufacturer Program, all right, title and interest of a Grantor Lessor or
Grantor Lessee in, to and under each Manufacturer Program associated with such
Vehicle, solely to the extent such right, title and interest relate to such
Vehicle, including any amendments thereof and all monies due and to become due
in respect of such Vehicle under or in connection with such Manufacturer
Program, whether payable as Vehicle repurchase prices, auction sales proceeds,
fees, expenses, costs, indemnities, insurance recoveries, damages for breach of
the Manufacturer Program or otherwise and all rights to compel performance and
otherwise exercise remedies thereunder; provided that for the avoidance
of doubt, Master Exchanged Vehicle Repurchase Rights shall constitute Vehicle
Repurchase Rights for all purposes hereunder and Exchanged Vehicle Repurchase
Rights shall not constitute Vehicle Repurchase Rights.

“Weekly VIN
Report” has the meaning set forth in Section 2.4(b).

“Weekly VIN
Reporting Calculation Date” means the first Friday of each
calendar month occurring on or after the 6th day of such calendar month, and
each of the two following Fridays of such calendar month.

“Weekly VIN
Vehicle Report Date” means the 12th calendar day following each Weekly VIN
Reporting Calculation Date, or if such day is not a Business Day, the next
succeeding Business Day.

SECTION 1.2                 Interpretation
and Construction.  Unless the context
of this Agreement otherwise clearly requires, references to the plural include
the singular, to 

 

20

the singular
include the plural and to the part include the whole.  The words “hereof”, “herein”, “hereunder” and
similar terms in this Agreement refer to this Agreement as a whole and not to
any particular provision of this Agreement. 
Unless otherwise stated in this Agreement, in the computation of a
period of time from a specified date to a later specified date, the word “from”
means “from and including” and the words “to” and “until” each means “to but
excluding”.  Sections and other headings
contained in this Agreement are for reference purposes only and shall not
control or effect the construction of this Agreement or the interpretation
hereof in any respect.  Section,
subsection and exhibit references are to this Agreement unless otherwise
specified.  As used in this Agreement,
the masculine, feminine or neuter gender shall each be deemed to include the
others whenever the context so indicates. 
Reference is hereby made to the Master Exchange Agreement (and the LKE
Program implemented in accordance therewith) which should be read and construed
in conjunction with this Agreement when interpreting or otherwise determining
the context of any provision of this Agreement.

 

 

ARTICLE
II

MASTER COLLATERAL AGENT AS LIENHOLDER

FOR CERTAIN BENEFICIARIES

SECTION 2.1                 Security
Interest.

(a)           Grant by the Lessee Grantors.  As security for the payment of the respective
obligations from time to time owing by each of the Lessee Grantors under the
Financing Documents with respect to each Financing Source (and the Related
Beneficiary, as assignee thereof), each of the Lessee Grantors hereby grants,
pledges and assigns to the Master Collateral Agent for the benefit of each
Financing Source (and the Related Beneficiary, as assignee thereof), to the
extent of the Related Master Collateral with respect to such Related Beneficiary,
a continuing, first priority security interest in all right, title and interest
of such Lessee Grantor in, to and under the following, whether now owned or
subsequently acquired or arising (the “Lessee Grantor Master Collateral”):

(i)            all
Vehicles owned by such Lessee Grantor and all Certificates of Title with
respect thereto;

(ii)           the
Post LKE Reallocation Master Collateral Accounts and all funds from time to
time deposited or held therein;

(iii)          all
investments of funds on deposit in the Post LKE Reallocation Master Collateral
Accounts, and all certificates, instruments and documents related to such
investments;

(iv)          all
rights under each Manufacturer Program associated with the Vehicles referred to
in clause (i) above owned by such Lessee Grantor 

 

21

 

 

to
the extent such rights relate to such Vehicles, including any amendments
thereof and all monies due and to become due in respect of such Vehicles under
or in connection with each such Manufacturer Program whether payable as Vehicle
repurchase prices, auction sales proceeds, guaranteed depreciation payments,
fees, expenses, costs, indemnities, insurance recoveries, damages for breach of
the Manufacturer Program or otherwise and all rights to compel performance and
otherwise exercise remedies thereunder;

(v)           Eligible
Receivables financed or refinanced by a Lessee Grantor under a Lease;

(vi)          all
sale or other disposition proceeds payable by any Person in respect of the
disposition of the Vehicles referred to in clause (i) above owned by
such Lessee Grantor including, without limitation, auction proceeds;

(vii)         all
payments under insurance policies (whether or not the Master Collateral Agent
is named as the loss payee thereof) or any warranty payable by reason of loss
or damage to, or otherwise with respect to, any of the Vehicles referred to in clause
(i) above owned by such Lessee Grantor;

(viii)        the
Master Exchange Agreement and the Escrow Agreement, including any amendments
thereof, all monies due and to become due to such Lessee Grantor in respect of
the Related Vehicles thereunder, whether amounts payable by the Intermediary
to, or on behalf of, such Lessee Grantor from the accounts maintained pursuant
to this Agreement, the Master Exchange Agreement and the Escrow Agreement or
payable as damages for breach of the Master Exchange Agreement, the Escrow
Agreement or otherwise, and all other property payable by the Intermediary to,
or on behalf of, such Lessee Grantor thereunder and all rights to compel
performance and otherwise exercise remedies thereunder; provided, however,
that in the case of any funds held in any of the accounts maintained pursuant
to this Agreement, the Master Exchange Agreement and the Escrow Agreement that
constitute Relinquished Property Proceeds, such funds shall not constitute
Lessee Grantor Master Collateral until such funds become Non-Qualified Funds;
and

(ix)           any
and all products and proceeds of any of the foregoing;

provided that, in no event shall any of the foregoing include
any right, title or interest in Relinquished Property Rights, Excluded Payments
or Unpledged Master Collateral, and in the case of Relinquished Property Rights
and Unpledged Master Collateral from the time such Relinquished Property Rights
or Unpledged Master Collateral become Relinquished Property Rights or Unpledged
Master Collateral as a result of the 

 

 

22

 

assignment of such Relinquished Property Rights to the Intermediary or the
pledge or sale of such Unpledged Master Collateral to the related Receivables
Purchaser Beneficiary, Receivables Pledgee Beneficiary or QI Beneficiary, as
applicable.

 

(b)           Grant by the Lessor Grantors.  As security for the payment of the respective
obligations from time to time owing by the Lessor Grantors under the Financing
Documents with respect to each Financing Source (and the Related Beneficiary,
as assignee thereof) under the Financing Documents with respect to such
Financing Source, each of the Lessor Grantors hereby grants, pledges and
assigns to the Master Collateral Agent for the benefit of each Financing Source
(and the Related Beneficiary, as assignee thereof), to the extent of the
Related Master Collateral with respect to such Related Beneficiary, a
continuing, first priority security interest in all right, title and interest
of such Lessor Grantor in, to and under the following, whether now owned or
subsequently acquired or arising (the “Lessor Grantor Master Collateral”
and together with the Lessee Grantor Master Collateral, the “Pledged Master Collateral”):

(i)            all
Vehicles owned by such Lessor Grantor and all Certificates of Title with
respect thereto;

(ii)           the
Post LKE Reallocation Master Collateral Accounts and all funds from time to
time deposited or held therein;

(iii)          all
investments of funds on deposit in the Post LKE Reallocation Master Collateral
Accounts, and all certificates, instruments and documents related to such
investments;

(iv)          all
rights under each Manufacturer Program (including, for the avoidance of doubt,
the GM Freeze Agreement) associated with the Vehicles referred to in clause
(i) above owned by any Lessor Grantor to the extent such rights relate to
such Vehicles, including any amendments thereof and all monies due and to
become due in respect of such Vehicles under or in connection with each such
Manufacturer Program whether payable as Vehicle repurchase prices, auction
sales proceeds, guaranteed depreciation payments, fees, expenses, costs,
indemnities, insurance recoveries, damages for breach of the Manufacturer
Program or otherwise and all rights to compel performance and otherwise
exercise remedies thereunder;

(v)           Eligible
Receivables financed or refinanced by a Lessor Grantor with proceeds obtained
from a Financing Source;

(vi)          all
sale or other disposition proceeds payable by any Person in respect of the
disposition of the Vehicles referred to in clause (i) above owned by
such Lessor Grantor including, without limitation, auction proceeds;

 

23

 

(vii)         all
payments under insurance policies (whether or not the Master Collateral Agent
is named as the loss payee thereof) or any warranty payable by reason of loss
or damage to, or otherwise with respect to, any of the Vehicles referred to in clause
(i) above owned by such Lessor Grantor;

(viii)        the
Master Exchange Agreement and the Escrow Agreement, including any amendments
thereof, all monies due and to become due to such Lessor Grantor in respect of
the Related Vehicles thereunder, whether amounts payable by the Intermediary
to, or on behalf of, such Lessor Grantor from the accounts maintained pursuant
to this Agreement, the Master Exchange Agreement and the Escrow Agreement or
payable as damages for breach of the Master Exchange Agreement, the Escrow
Agreement or otherwise, and all other property payable by the Intermediary to,
or on behalf of, such Lessor Grantor thereunder and all rights to compel performance
and otherwise exercise remedies thereunder; provided, however,
that in the case of any funds held in any of the accounts maintained pursuant
to this Agreement, the Master Exchange Agreement and the Escrow Agreement that
constitute Relinquished Property Proceeds, such funds shall not constitute
Lessor Grantor Master Collateral until such funds become Non-Qualified Funds;
and

(ix)           any
and all products and proceeds of any of the foregoing;

and (a) NFLP hereby confirms its grant, pledge and
assignment pursuant to the Original Amended and Restated Agreement and the
Second Amended and Restated Agreement and (b) to the extent not covered by clause
(a) above, each of the Lessor Grantors hereby confirms its grant, pledge
and assignment pursuant to the Third Amended and Restated Agreement, the Fourth
Amended and Restated Agreement, the Fifth Amended and Restated Agreement, the
Sixth Amended and Restated Agreement and the Seventh Amended and Restated
Agreement but solely to the extent of such Lessor Grantor Master Collateral
specified above; provided that, in no event shall any of the foregoing
include any right, title or interest in Relinquished Property Rights, Excluded
Payments or Unpledged Master Collateral, and in the case of Relinquished
Property Rights and Unpledged Master Collateral from the time such Relinquished
Property Rights or Unpledged Master Collateral become Relinquished Property
Rights or Unpledged Master Collateral as a result of the assignment of such
Relinquished Property Rights to the Intermediary or the pledge or sale of such
Unpledged Master Collateral to the related Receivables Purchaser Beneficiary,
Receivables Pledgee Beneficiary or QI Beneficiary, as applicable.

                                Notwithstanding anything to the
contrary contained in this Agreement, the pledge and security interest granted
by (x) NFLP hereunder is an extension of the pledge and security interest
granted under the Original Amended and Restated Agreement, the Second Amended
and Restated Agreement, the Third Amended and Restated Agreement, the Fourth
Amended and Restated Agreement, the Fifth Amended and Restated 

 

24

Agreement, the Sixth
Amended and Restated Agreement and the Seventh Amended and Restated Agreement,
but solely to the extent of the Pledged Master Collateral defined herein and (y)
Alamo Leasing hereunder is an extension of the pledge and security interest
granted under the Third Amended and Restated Agreement, the Fourth Amended and
Restated Agreement, the Fifth Amended and Restated Agreement, the Sixth Amended
and Restated Agreement and the Seventh Amended and Restated Agreement, but
solely to the extent of the Pledged Master Collateral defined herein.

                                Notwithstanding anything to the
contrary contained in this Agreement, the Master Exchange Agreement, or any
Financing Document, the Pledged Master Collateral shall not include, and each Lessor
Grantor does not hereby pledge, assign, convey, deliver, transfer, or set over
to the Master Collateral Agent or the Related Beneficiary, any security
interest, lien, or other encumbrance in any Relinquished Property Rights, and
the Pledged Master
Collateral shall not include any such Relinquished Property Rights until such
time as each Lessor Grantor is permitted to do so consistent with the
limitations on the rights of a party to receive, pledge, borrow, or otherwise
obtain the benefits of money or other property set forth in the “safe harbor”
provisions of the Code and Section 1.1031(k)-1(g)(6) of the Treasury
Regulations promulgated thereunder.

                                Each of Vanguard, the Lessee
Grantors, the Lessor Grantors, each Financing Source and each Beneficiary (other
than the Receivables Purchaser Beneficiaries, the Receivables Pledgee
Beneficiaries and the QI Beneficiaries) hereby authorizes, and each of the Receivables
Purchaser Beneficiaries, the Receivables Pledgee Beneficiaries and the QI
Beneficiaries hereby consents to, the Master Collateral Agent to be named as
the first lienholder on the Certificates of Title for the Vehicles (or, with
respect to any Vehicles in an Initial Fleet, as applicable, to be the assignee
of the first lienholder on the Certificates of Title), in a representative
capacity, as Master Collateral Agent for the Beneficiaries (other than the Receivables
Purchaser Beneficiaries, the Receivables Pledgee Beneficiaries and the QI
Beneficiaries).  The Master Collateral
Agent agrees that all of its right, title and interest in and to the portion of
the Master Collateral constituting Related Master Collateral with respect to
each Beneficiary shall be solely for the benefit of the related Financing
Source (and such Beneficiary, as assignee thereof) or Receivables Purchaser
Beneficiary, QI Beneficiary or Receivables Pledgee Beneficiary, as applicable.

Each Financing
Source and each Beneficiary (other than the Receivables Purchaser Beneficiaries,
the Receivables Pledgee Beneficiaries and the QI Beneficiaries) hereby directs,
and each of the Receivables Purchaser Beneficiaries, the Receivables Pledgee
Beneficiaries and the QI Beneficiaries hereby consents to, the Master
Collateral Agent to execute and deliver as of the date set forth therein in its
capacity as Master Collateral Agent hereunder each Assignment Agreement
hereafter entered into by any of the Lessee Grantors or Lessor Grantors.

(c)           Each
of the Lessor Grantor and the Lessee
Grantors:

 

25

 

(i)            shall file, or cause to be filed, such
financing statements and file, or cause to be filed, such continuation
statements, all in such manner and in such places as may be required by
law to preserve, maintain and perfect the security interest of the Master
Collateral Agent in the Lessor Grantor Master Collateral and the Lessee Grantor
Master Collateral;

(ii)           shall deliver (or cause to be delivered)
to the Master Collateral Agent file-stamped copies of, or filing receipts for,
any financing statements and continuation statements filed as provided above,
as soon as available following such filing;

(iii)          authorizes the Master Collateral Agent or
its agents to file such financing statements and continuation statements and to
file such other financing statements and continuation statements as the Master
Collateral Agent may deem advisable in connection with the security interest
granted by each Lessor Grantor and Lessee Grantor pursuant to this Section
2.1; provided, that the Master Collateral Agent shall have no
obligation to determine the advisability of any such filing;

(iv)          shall not change its name, identity or
organizational structure in any manner that would make any financing statement
or continuation statement filed in accordance with clause (i) above
seriously misleading within the meaning of Section 9-506(c) or Section 9-508(b) of the Uniform Commercial Code, unless it
shall have given the Master Collateral Agent at least five days’ prior
written notice thereof and shall have promptly filed appropriate amendments to
all previously filed financing statements or continuation statements;

(v)           shall have an obligation to give the
Master Collateral Agent at least 60 days’ prior written notice of any change in
the jurisdiction in which it is organized if, as a result of such relocation,
the applicable provisions of the Uniform Commercial Code would require the
filing of any amendment of any previously filed financing statement or
continuation statement or of any new financing statement and shall promptly
file any such amendment or new financing statement.

SECTION 2.2                 Designation of Beneficiaries.  Any party which from time to time is
designated as a Beneficiary pursuant to a Financing Source and Beneficiary
Supplement will be the Beneficiary hereunder with respect to its Related
Vehicles and all other Related Master Collateral.  The designation of Related Vehicles with
respect to each Beneficiary on the Master Servicer’s computer system as
evidenced by the most recently delivered Designation Report shall be considered
prima facie evidence of such Beneficiary’s rights with respect to such Related
Vehicles and the Related Master Collateral and shall create a rebuttable
presumption as to the accuracy of such designation.  If at any time a Beneficiary reasonably
believes that any designation 

 

26

 

of the Related
Vehicles with respect to such Beneficiary by the Master Servicer is incorrect,
it may dispute such designation by delivering a written notice to the Master
Collateral Agent and the Master Servicer setting forth its claim (each, a “Reassignment
Claim”) as to the correct designation of its Related Vehicles (any such
designation that is changed by the Master Servicer in accordance with the
provisions of this Section 2.2, a “Reassignment”); provided,
however, that no Reassignment Claim may be filed with respect to a
Related Vehicle after the date on which the disposition proceeds of such
Related Vehicle have been paid to or at the direction of the applicable
Beneficiary designated on the Master Servicer’s computer system.  The Master Collateral Agent, promptly upon
receipt of such Reassignment Claim, shall distribute a copy thereof to each of
the Lessee Grantors and the Lessor Grantors. 
If no other Financing Source or Beneficiary is shown in the Master
Servicer’s computer system as being the Related Financing Source or Related
Beneficiary for any Vehicle subject to a Reassignment Claim, the Master
Servicer shall effect such Reassignment, unless, within ten (10) Business Days
of the delivery of such Reassignment Claim by a Beneficiary to the Master
Collateral Agent, such Beneficiary shall notify the Master Collateral Agent and
the Master Servicer in writing that it has withdrawn such Reassignment
Claim.  If another Financing Source or
Beneficiary is shown in the Master Servicer’s computer system as being the
Related Financing Source or Related Beneficiary for a Vehicle subject to a
Reassignment Claim, then the Master Servicer shall promptly notify the Master
Collateral Agent who shall promptly notify such other Financing Source and
Beneficiary of the Reassignment Claim.  Each such
Financing Source and Beneficiary, within ten (10) Business Days of receipt of
such notice from the Master Collateral Agent, shall notify the Master
Collateral Agent in writing as to whether it consents to the disputing
Beneficiary’s Reassignment.  If the
Master Collateral Agent receives written notice from each such Beneficiary and
Financing Source containing its consent to the disputing Beneficiary’s
Reassignment within the period set forth above, it shall promptly notify the
Master Servicer, and the Master Servicer shall effect such Reassignment.  If the Master Collateral Agent does not
receive written notice from each such Beneficiary and Financing Source
containing its consent to the disputing Beneficiary’s Reassignment within the
period set forth above, it shall so notify the disputing Beneficiary and the
Master Servicer.  Absent the consent of
the Financing Source and Beneficiary shown in the Master Servicer’s computer
system as the Related Financing Source and Related Beneficiary (the “Record
Beneficiary”) with respect to a Vehicle subject to a Reassignment Claim,
the Master Servicer shall not effect such Reassignment (unless it receives a
Reassignment Report on or prior to the last day of the applicable Dispute
Period as set forth below).  Prior to the
distribution to a Beneficiary of proceeds in respect of the disposition of a
Related Vehicle with respect to such Beneficiary, the sole method by which a
disputing Beneficiary may successfully rebut the presumption of accuracy of the
designation of the Record Beneficiary of the Vehicle subject to the
Reassignment Claim shown in the Master Servicer’s computer system is to provide
to the Master Collateral Agent, the Master Servicer and such other Financing
Source and Beneficiary,
within 120 days of the date on which it filed the applicable Reassignment Claim
(the “Dispute Period”), a report of Independent
Public Accountants hired by the Record Beneficiary with respect to a Vehicle
subject to a Reassignment Claim and by the 

 

27

disputing Beneficiary to the effect that such Independent Public
Accountants have performed the procedures set forth in such report (which
procedures shall be agreed upon at the time of the hiring of the Independent
Public Accountants and must be reasonably satisfactory to each of the Record
Beneficiary and the disputing Beneficiary) and, based on such procedures, have
concluded that the correct Beneficiary with respect to such Vehicle is the
disputing Beneficiary (each
such report, a “Reassignment Report”). 
If a Reassignment Report is received by the Master Collateral Agent on
or before the last day of the Dispute Period with respect to a Vehicle that is
the subject of a Reassignment Claim, (i) if such Vehicle has not been disposed
of, the Master Servicer will effect the Reassignment and (ii) if such Vehicle
has been disposed of, the Master Collateral Agent will release the disposition
proceeds for the benefit of the Beneficiary shown as the correct Beneficiary in
the Reassignment Report in accordance with the terms of this Agreement and the
Master Exchange Agreement (and the Master Servicer shall instruct the Master
Collateral Agent as to the terms of the Master Exchange Agreement).  If a Reassignment Report is not received by
the Master Collateral Agent on or before the last day of the Dispute Period
with respect to a Vehicle that is the subject of a Reassignment Claim, the
Master Servicer will not effect the Reassignment and, if such Vehicle has been
disposed of, the Master Collateral Agent will release the disposition proceeds
thereof to the Beneficiary shown as the Beneficiary in the Designation Report
most recently delivered prior to the disposition.  The existence of an outstanding Reassignment
Claim in respect of any Vehicle shall not interfere with the right, if any, of the
Record Beneficiary with respect to such Vehicle, as shown in the Master
Servicer’s computer system and evidenced in the most recently delivered
Designation Report, to direct the Master Collateral Agent to dispose of such
Vehicle in accordance with the Financing Documents with respect to such
Beneficiary and, notwithstanding Section 4.4(i) and (j), the
Master Collateral Agent shall comply with such direction without delay; provided,
however, that if
with respect to the disputing Beneficiary, a Default shall exist under the
Financing Documents related to such Beneficiary and the Master Collateral Agent
has been notified of such Default, then the Master Collateral Agent
shall retain the disposition proceeds of any such Vehicle in a Master
Collateral Account until the earlier of (i) the date on which such Reassignment
Claim shall have been resolved and (ii) the last day of the Dispute
Period.  Each Beneficiary expressly
agrees that it will not challenge, dispute or interfere with the right of
another Beneficiary to dispose of, or direct the Master Collateral Agent to
dispose of, its Related Vehicles as shown in the Master Servicer’s computer
system and evidenced in the most recently delivered Designation Report, even if such Beneficiary reasonably
believes that the designation of its Related Vehicles in such Designation
Report is incorrect.  After the
distribution to a Beneficiary of proceeds in respect of the disposition of a
Related Vehicle with respect to such Beneficiary, a disputing Beneficiary may
pursue any right or remedy available to it under applicable law or in equity.

                                Any
party which from time to time is designated as a Beneficiary pursuant to a
Beneficiary Supplement will be the Beneficiary hereunder with respect to its
Related Master Collateral.

 

 

28

 

Each Beneficiary
(other than the Receivables Purchaser Beneficiaries, Receivables Pledgee
Beneficiaries and the QI Beneficiaries) shall be entitled to the benefits of
this Agreement only with respect to its Related Vehicles and Related Master
Collateral and each Receivables Purchaser Beneficiary, Receivables Pledgee
Beneficiary and QI Beneficiary shall be entitled to the benefits of this
Agreement only with respect to its Related Master Collateral.  No Beneficiary shall have any interest in (i)
any Vehicle which is not a Related Vehicle as to such Beneficiary, (ii) any
funds in any Master Collateral Accounts that are proceeds of any Vehicle which
is not a Related Vehicle as to such Beneficiary, except that each Receivables
Purchaser Beneficiary, Receivables Pledgee Beneficiary and QI Beneficiary will
have an interest in its Related Master Collateral consisting of Vehicle
Repurchase Rights or the products or proceeds thereof even though it never had
an interest in the Related Vehicle, (iii) rights under any Manufacturer Program
with respect to any Vehicle which is not a Related Vehicle as to such
Beneficiary except that each Receivables Purchaser Beneficiary, Receivables
Pledgee Beneficiary and QI Beneficiary will have an interest in its Related
Master Collateral consisting of Vehicle Repurchase Rights or the products or
proceeds thereof even though it never had an interest in the Related Vehicle or
(iv) any other Master Collateral which is not Related Master Collateral as to
such Beneficiary (including any rights under the Master Exchange Agreement with
respect to any Relinquished Vehicle which was not a Related Vehicle as to such
Beneficiary), in each case regardless of the time, order, manner or nature of
attachment or perfection of security interests in Vehicles (including the
giving of, or failure to give, any purchase money security interest or other
notice, or the order of filing financing statements), or any provision of the
Uniform Commercial Code, the federal Bankruptcy Code, or other applicable law.  For the avoidance of doubt, (i) from the date of the
sale of any Vehicle Repurchase Rights to a Receivables Purchaser Beneficiary,
such Receivables Purchaser Beneficiary shall be the Beneficiary with respect to
such Vehicle Repurchase Rights, notwithstanding the fact that such Receivables
Purchaser Beneficiary was never the Beneficiary with respect to the Vehicles
that gave rise to such Vehicle Repurchase Rights, (ii) from the date of the
pledge of any Master Exchanged Vehicle Repurchase Rights to a QI Beneficiary or
its Related Financing Source, if any, such QI Beneficiary shall be the
Beneficiary with respect to such Master Exchanged Vehicle Repurchase Rights,
notwithstanding the fact that such QI Beneficiary was never the Beneficiary
with respect to the Vehicles that gave rise to such Master Exchanged Vehicle
Repurchase Rights and (iii) from the date of the pledge of any Vehicle
Repurchase Rights to a Receivables Pledgee Beneficiary or its Related Financing
Source, if any, such Receivables Pledgee Beneficiary shall be the Beneficiary
with respect to such pledged Vehicle Repurchase Rights, notwithstanding the
fact that such Receivables Pledgee Beneficiary was never the Beneficiary with
respect to the Vehicles that gave rise to such pledged Vehicle Repurchase Rights.

SECTION 2.3                 Redesignation
of Beneficiaries.  Each of the Lessee
Grantors and the Lessor Grantors, from time to time, may (i) finance additional
Vehicles (and, to the extent provided in the related Financing Documents,
Eligible Receivables and related Vehicle Repurchase Rights), with proceeds from
a Financing Source, and/or (ii) refinance Vehicles then owned by it (and, to
the extent provided in the related Financing

 

29

Documents,
Eligible Receivables and related Vehicle Repurchase Rights) and financed by a
Financing Source with proceeds from a different Financing Source (including
without limitation, a QI Beneficiary or a Receivables Pledgee Beneficiary or
their Related Financing Source) and/or (iii) sell Vehicle Repurchase Rights. In
connection therewith, upon satisfaction of the applicable conditions described
in this Section 2.3, the Master Servicer shall designate on its computer system
(x) (i) the Financing Source, if applicable, the proceeds of which are used to finance or
refinance such Vehicles and/or such Eligible Receivables and/or related Vehicle
Repurchase Rights and (ii) the Beneficiary with respect to such Vehicles and/or
Eligible Receivables and/or related Vehicle Repurchase Rights and (y) the
Receivables Purchaser Beneficiary with respect to any sold Vehicle Repurchase
Rights. In the case of a refinancing of Vehicles and/or Eligible Receivables
and/or related Vehicle Repurchase Rights, upon repayment in full of all amounts
owing to the old Financing Source in respect of such Vehicles and/or such
Eligible Receivables and/or such related Vehicle Repurchase Rights under the
Related Financing Documents or, in the case of a refinancing of Vehicle
Repurchase Rights, payment in full of the amounts to be advanced against such
Vehicle Repurchase Rights by the new Financing Source, and satisfaction of all
conditions specified in such Related Financing Documents for the release of
such Vehicles and/or Eligible Receivables and/or related Vehicle Repurchase
Rights (I) such Vehicles and/or such Eligible Receivables and/or such related Vehicle Repurchase
Rights, as the case may be, shall constitute Related Vehicles and/or Eligible
Receivables and/or
related Vehicle Repurchase Rights of the Beneficiary related
to such new Financing Source, and (II) such Vehicles and/or such Eligible Receivables and/or such
related Vehicle Repurchase Rights, as the case may be, shall cease to be
Related Vehicles and/or Eligible Receivables and/or related Vehicle Repurchase Rights
of the Beneficiary related to the old Financing Source.  In the case of a sale of Vehicle Repurchase
Rights to a Receivables Purchaser Beneficiary, upon payment in full of the
purchase price of such Vehicle Repurchase Rights and satisfaction of all conditions
specified in the Related Financing Documents for the release of such Vehicle
Repurchase Rights (I) such Vehicle Repurchase Rights shall constitute Vehicle Repurchase Rights of such
Receivables Purchaser Beneficiary, and (II) such Vehicle Repurchase Rights shall cease to be Vehicle
Repurchase Rights of the Beneficiary related to the old Financing Source.  Notwithstanding the foregoing, in connection
with a refinancing of Related Vehicles and/or Eligible Receivables (excluding
Vehicle Repurchase Rights), in each case with respect to a Beneficiary, the right of the Master
Servicer to designate Vehicles (and, to the extent provided in the related
Financing Documents, Eligible Receivables (excluding Vehicle Repurchase
Rights)) that will cease to be Related Vehicles and/or Eligible Receivables
(excluding Vehicle Repurchase Rights) with respect to such Beneficiary shall be
subject to the conditions that immediately after giving effect to such
designation:

(a)           no Default shall exist under the
Financing Documents related to such Beneficiary or result from such
redesignation (provided, however, that the Master Servicer shall
have the right to make such redesignation for the purpose of curing such
Default); and

 

30

(b)           such Beneficiary shall continue to
have designated to it Related Vehicles (and, to the extent provided in the
Financing Documents of such Beneficiary, Eligible Receivables and other
eligible collateral) with a collateral value (as determined under the
Financing Documents relating to the Financing Source with respect to such
Beneficiary) not less than the collateral value required in such Financing
Documents to support the outstanding loans or securities issued under such
Financing Documents.

Each designation or
redesignation by the Master Servicer shall automatically constitute a
representation and warranty by the Master Servicer for the benefit of each
related Beneficiary that the conditions in this Section 2.3 have been
met and that all Related Vehicles of a Beneficiary meet the eligibility
criteria set forth in the relevant Financing Documents and that, in the case of
refinanced Vehicles and/or Eligible Receivables or sold or pledged Vehicle Repurchase Rights, the loans or
securities of the original Financing Source with respect to such refinanced
Vehicles and/or Eligible Receivables or sold or pledged Vehicle Repurchase Rights have been
repaid in full or (x) are otherwise fully secured with eligible collateral (as
determined under the Financing Documents with respect to such original
Financing Source) or (y) in the case of a sale or pledge of Vehicle Repurchase
Rights, are secured with eligible collateral (as determined under the Financing
Documents with respect to such original Financing Source) with a value after
giving effect to such sale or pledge not less than that required under such
Financing Documents to effect such sale or pledge of Vehicle Repurchase
Rights.  Such Vehicles shall be
redesignated at their Net Book Value and such Eligible Receivables or Vehicle
Repurchase Rights shall be redesignated at their outstanding face amount.  Except as provided in Section 2.5(b),
no Beneficiary shall have any interest in any Vehicle or other Master
Collateral for which it is no longer the Beneficiary hereunder, it being
understood that, subject to the satisfaction of the conditions set forth in
this Section 2.3 and satisfaction of all conditions specified in the
related Financing Documents for the release of such Vehicle from the Related
Lease or the release
of such Eligible Receivables or Vehicle Repurchase Rights from the related
Financing Documents, any such redesignation shall constitute a release by such
Beneficiary of any interest therein.

If a redesignation
of any Vehicle or Eligible Receivables or Vehicle Repurchase Rights pursuant to
this Section 2.3 shall occur on any day, the Master Servicer shall
furnish or cause to be furnished to the Master Collateral Agent on the next
succeeding Business Day a report identifying (i) each Vehicle, identified by
the vehicle identification number with respect to such Vehicle, so redesignated
and the Eligible Receivables or Vehicle Repurchase Rights, in each case
identified by the VIN with respect to the Vehicles giving rise to such Eligible
Receivables or Vehicle Repurchase Rights, the Manufacturer of such Vehicle
giving rise to such Eligible Receivables or Vehicle Repurchase Rights, the face
amount of such Eligible Receivables or Vehicle Repurchase Rights and the amount
of days, if any, such Eligible Receivables or Vehicle Repurchase Rights are
past due, (ii) the Beneficiary with respect to such Vehicle or Eligible
Receivables or Vehicle Repurchase Rights prior to the redesignation and (iii)
the Beneficiary with respect to such Vehicle or Eligible Receivables or Vehicle
Repurchase Rights after giving effect to such redesignation (such report, a “Redesignation
Report”).

 

31

 

SECTION 2.4                 Master
Servicer’s Reports.  (a)  Master Servicer’s Fleet Report.  On or prior to the twelfth day of each
calendar month (or if the 12th such day is not a Business Day the next
succeeding Business Day), the Master Servicer shall furnish or cause to be
furnished to the Master Collateral Agent a report (which may be on diskette,
magnetic tape or other electronic medium reasonably acceptable to the Master
Collateral Agent) substantially in the form of Exhibit C (each such
report, a “Fleet Report”) showing for each Beneficiary as of the last
day of the immediately preceding calendar month (i) the Related Vehicles
designated to such Beneficiary identified by the vehicle identification numbers
with respect to such Related Vehicles and, if the Eligible Receivables or
Vehicle Repurchase Rights with respect to any Vehicle that was a Related Vehicle
on the previous Fleet Report have been redesignated to a Beneficiary other than
the Beneficiary with respect to the Related Vehicle, the Eligible Receivables
and Vehicle Repurchase Rights designated to such new Beneficiary, (ii) whether
such Related Vehicles are owned by Vanguard, any other Lessee Grantor, NFLP,
Alamo Leasing or any other Lessor Grantor, (iii) the Capitalized Cost and Net
Book Value of such Related Vehicles (calculated in accordance with the
Financing Documents relating to the applicable Financing Source) and (iv) the state in which each Vehicle is
titled.  The Master Collateral Agent
shall make the Fleet Report available for inspection by any Beneficiary at the
Corporate Trust Office, during normal business hours, upon such Beneficiary’s prior
written request.

                                (b)           Weekly VIN Report.  The Master Servicer shall furnish or cause to
be furnished to the Master Collateral Agent and to each Beneficiary (other than
the Receivables Purchaser Beneficiaries, the Receivables Pledgee Beneficiaries
and the QI Beneficiaries) a report on the Weekly VIN Report Date (which may be
on diskette, magnetic tape or other electronic medium reasonably acceptable to
the Master Collateral Agent) substantially in the form of Exhibit H
(each such report, a “Weekly VIN Report”) showing for each Beneficiary,
as of the immediately preceding Weekly VIN Reporting Calculation Date, the
Related Vehicles with respect to each Beneficiary, as shown on the Master
Servicer’s computer system, identified by the vehicle identification number
with respect to each such Related Vehicle. 
In addition, after the occurrence of a Liquidation Event of Default or a
Limited Liquidation Event of Default with respect to any Financing Source, if
the Master Collateral Agent, acting at the direction of the Related
Beneficiary, requests a Weekly VIN Report, the Master Servicer shall furnish or
cause to be furnished to the Master Collateral Agent and to such Beneficiary a
report within two Business Days of such request, substantially in the form of Exhibit
H showing, with respect to such Beneficiary, as of the most recent day that
the Master Servicer in its reasonable best efforts can report but in any event
no earlier than the 12th day prior to the date of the delivery of such report,
(i) the Related Vehicles designated to such Beneficiary identified by the
vehicle identification numbers with respect to such Related Vehicles and, if
the Eligible Receivables or Vehicle Repurchase Rights with respect to any
Vehicle that was a Related Vehicle on the previous Fleet Report have been
redesignated to a Beneficiary other than the Beneficiary with respect to the
Related Vehicle, the Eligible Receivables and Vehicle Repurchase Rights
designated to such new Beneficiary, (ii) whether such Related Vehicles are
owned by Vanguard, any other Lessee Grantor, NFLP, Alamo 

 

 

32

 

Leasing or any other Lessor Grantor, (iii)
the Capitalized Cost and Net Book Value of such Related Vehicles (calculated in
accordance with the Financing Documents relating to the applicable Financing
Source) and (iv) the state in which each
Vehicle is titled, which report shall be deemed to be a Weekly VIN Report for
all purposes hereunder.

 

SECTION 2.5                 Master
Collateral Accounts.

(a)           (I) The Master Collateral Agent shall
establish and maintain, or cause to be established and maintained, the accounts
identified on Exhibit F (collectively, the “Joint Master Collateral Accounts”),
in the joint name of Master Collateral Agent and the Intermediary, which accounts
shall be titled “Citibank, N.A., as Master Collateral Agent, and Car for a Car,
Corp., as Qualified Intermediary, for Alamo Financing L.P.”.  The Joint Master Collateral Accounts shall be
maintained (i) with a Qualified Institution or (ii) as segregated trust
accounts with the corporate trust department of a depository institution or
trust company having corporate trust powers, provided that, if such
accounts are not segregated trust accounts and are maintained with a Qualified
Institution and at any time such Qualified Institution fails to satisfy the
definition of Qualified Institution, then the Master Collateral Agent shall,
within 10 Business Days of such failure, establish new Joint Master Collateral
Accounts with a new Qualified Institution or new segregated trust accounts with
the corporate trust department of a depository institution or trust company
having corporate trust powers and acting as trustee for funds deposited in such
Joint Master Collateral Accounts.  In
connection with the establishment of new Joint Master Collateral Accounts
pursuant to the preceding sentence, the Master Collateral Agent and the
Intermediary shall transfer into the new Joint Master Collateral Accounts all
funds from the non-qualifying Joint Master Collateral Accounts.  Initially, the Joint Master Collateral
Accounts will be established with the Master Collateral Agent.  The Master Collateral Agent hereby covenants
and agrees that, unless otherwise expressly provided for herein, it will not
create, incur, assume or permit to exist any lien upon the Joint Master
Collateral Accounts or any funds on deposit therein.

                                                (II)  The Master Collateral Agent shall establish
and maintain for the benefit of the Beneficiaries, or cause to be established
and maintained, the accounts identified on Exhibit F (collectively, the “Post
LKE Reallocation Master Collateral Accounts” and, together with the Joint
Master Collateral Accounts, the “Master Collateral Accounts”), in the
name of Master Collateral Agent, bearing a designation clearly indicating that
the funds deposited therein are held for the respective benefit of each
Beneficiary.  In the event that an LKE
Reallocation Trigger Event occurs as a result of an Event of Bankruptcy with
respect to the Intermediary or because the
LKE Program is no longer in effect (as determined by the Master Servicer or
Alamo Leasing in their sole discretion), then, promptly following
receipt by the Master Collateral Agent of notice from the Master Servicer of
such LKE Reallocation Trigger Event and for so long as such LKE Reallocation
Trigger Event continues, all funds which are on deposit or are deposited from
time to time into the Joint Master Collateral Account shall be promptly
transferred into a Post LKE Reallocation Master Collateral Account; provided,
however, that funds on deposit in a Joint Master Collateral Account will
not be transferred if, in the 

 

 

33

 

Master Collateral Agent’s reasonable
judgment, they are subject to an automatic stay in bankruptcy or other legal
process preventing their withdrawal.  The
Post LKE Reallocation Master Collateral Accounts shall be maintained (i) with a
Qualified Institution or (ii) as segregated trust accounts with the corporate
trust department of a depository institution or trust company having corporate
trust powers, provided that, if such accounts are not segregated trust
accounts and are maintained with a Qualified Institution and at any time such
Qualified Institution fails to satisfy the definition of Qualified Institution,
then the Master Collateral Agent shall, within 10 Business Days of such
failure, establish new Post LKE Reallocation Master Collateral Accounts with a
new Qualified Institution or new segregated trust accounts with the corporate
trust department of a depository institution or trust company having corporate
trust powers and acting as trustee for funds deposited in such Post LKE
Reallocation Master Collateral Accounts. 
In connection with the establishment of new Post LKE Reallocation Master
Collateral Accounts pursuant to the preceding sentence, the Master Collateral
Agent shall transfer into the new Post LKE Reallocation Master Collateral
Accounts all funds from the non-qualifying Post LKE Reallocation Master
Collateral Accounts.  The Master Servicer,
for so long as any such LKE Reallocation Trigger Event shall be continuing,
shall direct payments due under the Manufacturer Programs and (to the extent
required pursuant to Section 2.5(c) hereof) payments with respect to
other Master Collateral to be deposited directly into the Post LKE Reallocation
Master Collateral Accounts by the Manufacturers and related auction dealers, shall deposit into the Post LKE Reallocation Master Collateral
Accounts sale proceeds (including amounts paid to the Master Servicer by a
Manufacturer as a result of the Master Servicer’s sale of such Vehicle outside
such Manufacturer’s Manufacturer Program) and any other proceeds of the Pledged Master Collateral paid to the Master Servicer or a
Lessor Grantor or Lessee Grantor (whether as a result of a violation of the
provisions of Section 3.2(iii) or otherwise), by the second (2nd)
Business Day following the Master Servicer’s or such Lessor Grantor’s or such
Lessee Grantor’s receipt thereof and shall remit
proceeds of the Vehicle Repurchase Rights comprising the Related Master
Collateral of each Receivables Purchaser Beneficiary, Receivables Pledgee
Beneficiary or QI Beneficiary, as applicable, paid to the Master Servicer or a
Lessor Grantor or Lessee Grantor (whether as a result of a violation of the
provisions of Section 3.2(iii) or otherwise), by the second (2nd)
Business Day following the Master Servicer’s or such Lessor Grantor’s or such
Lessee Grantor’s receipt thereof, in accordance with the Financing Documents
for such Receivables Purchaser Beneficiary, Receivables Pledgee Beneficiary or
QI Beneficiary, as applicable.

 

(b)           A Lessee Grantor or a Lessor Grantor
may enter into an Exchange Agreement with respect to Vehicles owned by each of
them, respectively, an interest in which has been pledged hereunder; provided
that the conditions to effectiveness of any such Exchange Agreement with
respect to such Vehicles specified in the definition thereof shall have been
satisfied.  A Lessee Grantor or a Lessor
Grantor may designate certain Vehicles as Designated Vehicles to be exchanged,
pursuant to an Exchange Agreement, for one or more Replacement Vehicles.  Upon receiving either (i) the required
Replacement Vehicle or Replacement Vehicles as Pledged Master Collateral and confirming their
compliance with the requirements set forth in the definition of 

 

34

“Replacement
Vehicle” by receipt of Vehicle Orders and a Refinanced Vehicle Schedule, if
any, covering such Replacement Vehicle or Replacement Vehicles, or (ii) written
confirmation from the Master Servicer, dated not more than seven (7) days prior
to the requested release date, to the effect that the release of the Master
Collateral Agent’s Lien on such Designated Vehicle and on any Exchanged Vehicle
Repurchase Rights and sales proceeds with respect thereto will not result in,
as applicable, (a) the Required Asset Amount (calculated on such date)
exceeding the Aggregate Asset Amount (calculated on such date, giving effect to
all increases in the Ineligible Asset Amount through such date) under the
applicable Financing Documents or (b) a Limited Liquidation Event of Default or
an event which, with the giving of notice, the passage of time or both, would
constitute a Limited Liquidation Event of Default with respect to the related
Series of Notes, the Master Collateral Agent shall release its Lien on the
related Designated Vehicle in accordance with Section 2.7, and such
Designated Vehicle shall become an Exchanged Vehicle.  All proceeds related to Exchanged Vehicles,
whether sale proceeds, amounts due under a Manufacturer Program, payments from
Manufacturers in respect of turned-back Exchange Vehicles sold at Auction or
any other proceeds, shall no longer be part of the Pledged Master Collateral
and shall not be required to be deposited into the Master Collateral Accounts.

(c)           Other than as set forth in the
following sentence, and, subject to the right, if any, of a Lessor Grantor or
Lessee Grantor, as set forth in the applicable Related Lease, to deposit
certain funds directly into the applicable Collection Account, the Master
Servicer, the Lessee Grantors and the Lessor Grantors, as applicable, shall
direct payments (i) representing amounts payable under Manufacturer Programs
(including payments under any Guaranteed Depreciation Program), (ii) relating
to the other Master Collateral and (iii) representing Relinquished Property
Proceeds to be deposited, for so long as no LKE Reallocation Trigger Event
shall have occurred and be continuing, into one or more of the Joint Master
Collateral Accounts and, so long as an LKE Reallocation Trigger Event shall
have occurred and be continuing, into one or more of the Post LKE Reallocation
Master Collateral Accounts, (and the Master Servicer hereby instructs the
Master Collateral Agent to deposit any such payments into the relevant Master
Collateral Accounts).  Subject to the
right, if any, of a Lessor Grantor or Lessee Grantor, as set forth in the
applicable Related Lease, to deposit certain funds directly into the applicable
Collection Account, by the second Business Day following its receipt thereof in
available funds, each of the Lessee Grantors or Lessor Grantors will deposit,
for so long as no LKE Reallocation Trigger Event shall have occurred and be
continuing, into one or more of the Joint Master Collateral Accounts and, so
long as an LKE Reallocation Trigger Event shall have occurred and be
continuing, into one or more of the Post LKE Reallocation Master Collateral
Accounts, proceeds received by any of the Lessee Grantors or Lessor Grantors
from (i) sales of Vehicles other than to or through a Manufacturer under its
Manufacturer Program (including any proceeds received from the sale or pledge
of Vehicle Repurchase Rights), (ii) sales of Vehicles at Auction, and (iii)
insurance proceeds and warranty payments received by any of the Lessee Grantors
or Lessor Grantors during any period when insurance proceeds are required to be
deposited in a Master Collateral Account under the applicable Financing Documents.  Each of the Lessee Grantors and 

 

35

the Lessor
Grantors will designate the Master Collateral Agent as loss payee on its
physical damage and comprehensive insurance policies on the Vehicles and cause
the proceeds thereof to be paid directly to the Master Collateral Agent; provided,
however, that to the extent that Vanguard or any other Lessee Grantor is
entitled to such insurance proceeds in accordance with the provisions of the
Related Lease, upon request of the Master Servicer (and, if any Beneficiary has
directed the Master Collateral Agent to obtain evidence of such entitlement,
upon delivery of such evidence), such proceeds shall be paid by the Master
Collateral Agent to the Master Servicer. 
The Master Collateral Agent shall promptly notify the Master Servicer
when funds are deposited or are on deposit in the Master Collateral
Accounts.  For so long as no LKE
Reallocation Trigger Event shall have occurred and be continuing, funds (other
than Non-Qualified Funds) on deposit in any of the Joint Master Collateral
Accounts shall be allocated and applied in accordance with the terms of the
Master Exchange Agreement (and the Master Servicer shall instruct the Master
Collateral Agent as to such allocations and applications).  For so long as an LKE Reallocation Trigger
Event shall have occurred and be continuing and, with respect to Non-Qualified
Funds, whether or not an LKE Reallocation Trigger Event shall have occurred or
be continuing, the Master Servicer, promptly after receipt of notice from the
Master Collateral Agent that funds have been deposited in the Master Collateral
Accounts, but in no event more than seven (7) days after the receipt of funds
by any of the Lessee Grantors or Lessor Grantors or receipt of such notice from
the Master Collateral Agent, as the case may be, shall instruct the Master
Collateral Agent (and, for so long as no LKE Reallocation Trigger Event shall
have occurred and be continuing, in the event any such funds constitute Non-Qualified
Funds, the Intermediary and Alamo Leasing) in writing, which instructions may
be given by any employee of the Master Servicer as to whom an Authorized Agent
has notified the Master Collateral Agent, and, if applicable, the Intermediary
and Alamo Leasing, that such employee is authorized to deliver such
instructions (an “Authorized Employee”), and upon which instructions the
Master Collateral Agent, and, if applicable, the Intermediary and Alamo
Leasing, may conclusively rely, as to (i) the amount thereof that constitutes
Relinquished Property Proceeds and the amount thereof that constitutes
Non-Qualified Funds, (ii) the amount thereof which represents payments arising
from the Related Vehicles and Related Master Collateral of each Beneficiary and
(iii) upon the occurrence and during the continuance of a Default and as needed
under paragraph (d) below, the dollar amount thereof that is derived
from the Lessee Grantor Master Collateral and the Lessor Grantor Master
Collateral, respectively.  The Master
Collateral Agent shall, pursuant to and promptly after receipt of such
instructions from the Master Servicer, distribute or cause to be distributed to
each Beneficiary the Non-Qualified Funds and, after the occurrence of an LKE
Reallocation Trigger Event which is continuing, any other funds in the Master
Collateral Accounts representing payments arising from the Related Vehicles and
Related Master Collateral of such Beneficiary to an account previously
specified in writing by such Beneficiary to the Master Collateral Agent, provided,
however, that the Master Servicer shall not direct the Master Collateral
Agent to so remit an amount in respect of Lessee Grantor Master Collateral or
Lessor Grantor Master Collateral, as the case may be, that would exceed the
amount required to pay all amounts owing to such Beneficiary or to the
Financing Source related to such Beneficiary by each of the Lessee Grantors and

 

36

the Lessor
Grantors, respectively; provided  further that at any time
following a Liquidation Event of Default or a Limited Liquidation Event of
Default with respect to a Financing Source, any amounts to be distributed by or
at the direction of the Master Collateral Agent to the Related Beneficiary
pursuant to this sentence shall be net of amounts owing to any Beneficiary
Agent of such Related Beneficiary in respect of which the Master Collateral
Agent shall have received a written invoice requesting payment accompanied by a
written certification from such Beneficiary Agent that it has requested payment
thereof from the Lessee Grantor or the Lessor Grantor responsible therefor and
has not received payment of such amounts when due from such Lessee Grantor or
Lessor Grantor.

(d)           At such time as no further distribution
from any of the Lessee Grantors or Lessor Grantors (as applicable) to any
Beneficiary, pursuant to the related Financing Documents, is required or will
be required to be made pursuant to paragraph (c), all remaining funds
allocated to such Beneficiaries in the Master Collateral Accounts shall be
distributed to each of the Lessee Grantors and the Lessor Grantors, as their
interests appear, upon the written direction of the Master Servicer  (and, in the event that any funds represent
Relinquished Property Proceeds, only to the extent permitted under the Master
Exchange Agreement).

(e)           If at any time the Master Collateral
Agent, the Master Servicer or any Beneficiary shall receive any funds to which
it is not entitled pursuant to the provisions of this Agreement, the Master
Servicer or such Beneficiary shall so advise the Master Collateral Agent (upon
which advice the Master Collateral Agent may conclusively rely) and the Master
Collateral Agent, such Beneficiary or the Master Servicer, as the case may be,
shall forthwith take reasonable steps to ensure that such funds are remitted to
the Person so entitled thereto, such remittance to be made promptly after
determination or advice thereof, as the case may be.

(f)            The Master Servicer and the
Intermediary may instruct (upon which instruction the Master Collateral Agent
may conclusively rely) the Master Collateral Agent to invest funds on deposit
in the Joint Master Collateral Accounts in Permitted Investments.  The Master Servicer may instruct (upon which
instruction the Master Collateral Agent may conclusively rely) the Master
Collateral Agent to invest funds on deposit in the Post LKE Reallocation Master
Collateral Accounts in Permitted Investments. 
Such investment instructions may be given by any employee of the Master
Servicer as to whom any of the Authorized Agents has notified the Master
Collateral Agent that such employee is authorized to deliver such
instructions.  If the Master Collateral
Agent does not receive instructions from the Master Servicer and, if
applicable, the Intermediary prior to 1:00 p.m. on any day as to the
distribution or investment of any funds in the Master Collateral Accounts then
the Master Collateral Agent shall invest such funds in Permitted Investments
pursuant to the letters (the “Investment Letters”) previously delivered
by the Master Servicer and, if applicable, the Intermediary to the Master
Collateral Agent.  All such investments
shall be redeemable or mature on the next Business Day.  The Master Collateral Agent shall not be
responsible for any losses incurred on any investments made pursuant to this paragraph
(f).

 

37

 

(g)           Joint Master Collateral Accounts
Disputes.  If the Master Collateral
Agent receives notice pursuant to Section 4.2(c) of the Master Exchange
Agreement that the Intermediary has disapproved of any proposed transfer of
funds from any of the Joint Master Collateral Accounts, then the Master
Collateral Agent, upon written direction of the Master Servicer, and based
solely on the information contained in such direction, shall deliver a
certification to the Intermediary setting forth the amounts that should be so
transferred.

SECTION 2.6                 Certificates
of Title.

(a)           The Master Collateral Agent shall
serve as custodian for the Certificates of Title relating to the Related
Vehicles of each Beneficiary (other than the Receivables Purchaser
Beneficiaries, the Receivables Pledgee Beneficiaries and the QI Beneficiaries);
provided that, unless such right is revoked as described in Section
2.6(c) in respect of the Certificates of Title relating to the Related
Vehicles of a Beneficiary, the Master Servicer shall act as custodian for the
Master Collateral Agent with respect to the Certificates of Title.  Until such time as the right of the Master
Servicer to act as custodian for the Certificates of Title relating to the
Related Vehicles of a Beneficiary shall be revoked and all Certificates of
Title for all such Related Vehicles shall have been delivered to the Master
Collateral Agent or its designee or agent, the Master Servicer shall cause each
of the Lessee Grantors to hold all of the Certificates of Title with respect to
Vehicles owned by any of the Lessor Grantors and leased by such Lessor Grantor
to any of the Lessee Grantors or owned by any of the Lessee Grantors and leased
from any of the Lessor Grantors in trust on behalf of the Master Servicer, in
the Master Servicer’s capacity as agent of, and custodian for, the Master
Collateral Agent.  The Master Servicer
shall cause each of the Lessee Grantors to (i) unless otherwise provided in the
applicable related Financing Documents, hold all such Certificates of Title
under lock and key, in a safe, fireproof location at one or more of the offices
specified in Exhibit D (as the same may be from time to time revised by
the Master Servicer on thirty (30) days prior written notice to the parties
hereto, and which lists all such locations); (ii) comply with all requirements
relating to such Certificates of Title contained in any related Financing
Document, including but not limited to, requirements relating to possession or
maintenance of the Certificates of Title and notation of ownership and
lienholder; and (iii) not release or surrender any Certificate of Title except
in accordance with this Agreement (and in any event not release or surrender
any of the Certificates of Title other than (A) Certificates of Title as to
which the security interest of the Master Collateral Agent has been released in
accordance with this Agreement or (B) Certificates of Title surrendered to the
Master Collateral Agent (or its designee) upon revocation of the right of the
Master Servicer to act as custodian therefor).

(b)           Except as provided in the applicable
Financing Documents, the Master Servicer shall cause the Certificates of Title
with respect to each Vehicle owned by any of the Lessee Grantors to show such
Lessee Grantor, and each Vehicle owned by any of the Lessor Grantors to show
such Lessor Grantor, as the registered owner and the Master Collateral Agent,
as agent, as the first lienholder, at the address referred to in the next
sentence.  On or prior to the date
hereof, the Master Collateral Agent has 

 

38

established a
separate Lockbox for each of the Lessee Grantors and the related Lessor Grantor
to be used exclusively as the Master Collateral Agent’s address as first
lienholder noted on the Certificate of Title, to which each such Lockbox the
Master Collateral Agent shall have sole access at all times except for access
by the Master Servicer and each respective Sub-Servicer permitted hereby.  The Master Collateral Agent shall permit the
Master Servicer and each respective Sub-Servicer, if any, to have access to
each Lockbox at all times until such time as each Beneficiary (other than the
Receivables Purchaser Beneficiaries, the Receivables Pledgee Beneficiaries and
the QI Beneficiaries) shall have revoked such rights of access to the Lockboxes
in accordance with the terms and conditions of the applicable Financing
Documents.  If less than all of the
Beneficiaries (other than the Receivables Purchaser Beneficiaries, the
Receivables Pledgee Beneficiaries and the QI Beneficiaries) shall have revoked
the rights of the Master Servicer and the Sub-Servicers to access the
Lockboxes, the Master Servicer and the Sub-Servicers shall continue to have
access to the Lockboxes.  Within two (2)
Business Days of the receipt by the Master Collateral Agent of written
direction from each of the Beneficiaries (other than the Receivables Purchaser
Beneficiaries, the Receivables Pledgee Beneficiaries and the QI Beneficiaries)
(a copy of which shall be sent simultaneously to the Master Servicer by each
such Beneficiary) revoking the Master Servicer’s and each Sub-Servicer’s rights
of access to the Lockboxes, the Master Collateral Agent shall take all
reasonable steps (i) to have the locks on the post office boxes constituting
the Lockboxes changed, (ii) to terminate the right of access of the Master
Servicer, each Sub-Servicer, if any, and the Lessee Grantors to the Lockboxes,
(iii) to terminate the ability of the Master Servicer, each Sub-Servicer, if
any, and the Lessee Grantors, and any employee or agent thereof, to pick up
mail addressed to such Lockboxes pursuant to “Caller Service” or any other
program by notifying the appropriate postal service personnel and (iv) if so
directed by all of the Beneficiaries, to cause mail addressed to such Lockboxes
to be forwarded to new Lockboxes to which the Master Servicer will not have access
opened by the Master Collateral Agent in the sole name of the Master Collateral
Agent in New York (the “New Lockboxes”). 
The Master Servicer agrees that following such revocation of the rights
of the Master Servicer and the Sub-Servicers to access the Lockboxes, if all of
the Beneficiaries (other than the Receivables Purchaser Beneficiaries, the
Receivables Pledgee Beneficiaries and the QI Beneficiaries) direct the Master
Collateral Agent to open the New Lockboxes, it will cause all applications submitted
thereafter for Certificates of Title for all Vehicles to list the New Lockboxes
as the address to which such Certificates of Title shall be mailed.

(c)           At the written direction of any
Beneficiary (other than a Receivables Purchaser Beneficiary, the Receivables
Pledgee Beneficiaries and the QI Beneficiaries) (such direction to be
substantially in the form of Exhibit K), if a Custody Revocation Trigger
Event under the Financing Documents relating to such Beneficiary shall occur
and be continuing, the Master Collateral Agent shall revoke the right of the
Master Servicer to act as agent of, and custodian for, the Master Collateral
Agent with respect to all Certificates of Title relating to such Beneficiary’s
Related Vehicles.  Any such revocation
shall be effective upon receipt of notice from the Master Collateral Agent
thereof by the Master Servicer.  In
connection with any such revocation by any such 

 

39

Beneficiary, the
Master Servicer, each Sub-Servicer, if any, and each Lessee Grantor holding any
such Certificates of Title shall (A) surrender possession of such Certificates
of Title relating to such Beneficiary’s Related Vehicles, together with all
applications for Certificates of Title relating to such Beneficiary’s Related
Vehicles, to the Master Collateral Agent (or its designee) as promptly as is
reasonably practicable, but in any event (i) within ten (10) Business Days if
at the time of such revocation there are 75,000 or more Certificates of Title relating
to such Beneficiary’s Related Vehicles (including applications for Certificates
of Title) that are required to be delivered in connection with such revocation
or (ii) within  five (5) Business Days if
at the time of such revocation there are 74,999 or fewer Certificates of Title
relating to such Beneficiary’s Related Vehicles (including applications for
Certificates of Title) that are required to be delivered in connection with
such revocation and (B) deliver any additional Certificates of Title relating
to such Beneficiary’s Related Vehicles that are received in the Lockboxes
following such revocation to the Master Collateral Agent (or its designee)
within two (2) Business Days of receipt thereof.

(d)           Reserved.

(e)           After the right of the Master Servicer
to act as custodian has been revoked with respect to a Beneficiary’s Related
Vehicles as described in Section 2.6(c), the Master Collateral Agent or
its agent shall hold the Certificates of Title for each Related Vehicle of such
Beneficiary as custodian on behalf of such Beneficiary and shall comply with
any instructions given to the Master Collateral Agent by such Beneficiary with
respect to such Certificates of Title, including instructions relating to
maintenance and possession of such Certificates of Title and the notation of
the Lien of the Master Collateral Agent. 
In accordance with the provisions of Section 4.1(d), the Master
Collateral Agent may at any time delegate any of its duties relating to
maintenance and possession of the Certificates of Title.  All fees and expenses incurred by the Master
Collateral Agent in transferring such duties and all fees and expenses charged
or incurred by any such designee in performing such services shall be paid by
the Lessee Grantors and Vanguard in the same manner as other costs and expenses
of the Master Collateral Agent are payable by such parties as described in Section
4.8.

SECTION 2.7                 Release
of Collateral.

(a)           (i)            With
respect to any Designated Vehicle, upon receiving the required items specified
in clause (i) or (ii) of Section 2.5(b), and upon
satisfaction of the following conditions precedent immediately prior to the
release of the Master Collateral Agent’s security interest:  (i) such Designated Vehicles satisfy all the
requirements specified in clause (ii) of the definition of “Exchanged Vehicle”,
(ii) no Amortization Event, Liquidation Event of Default or Limited Liquidation
Event of Default has occurred and is continuing under the Financing Documents
of the related Financing Source, and (iii) all conditions precedent, if any,
specified in any Financing Document with respect to the release of the related
Beneficiary’s Lien on such Designated Vehicle have been satisfied, then the
Lien and security interest of the Master Collateral Agent on such a Designated
Vehicle and on any Exchanged Vehicle Repurchase Rights related 

 

40

thereto and on any
sales proceeds with respect to Exchanged Vehicles will be automatically
released.

                                                (ii)           With respect to any Relinquished
Vehicle, upon satisfaction of the following conditions precedent immediately
prior to the release of the Master Collateral Agent’s security interest: (i) no
Amortization Event, Liquidation Event of Default or Limited Liquidation Event
of Default has occurred and is continuing under the Financing Documents of the
related Financing Source, and (ii) all conditions precedent, if any, specified
in any Financing Document (including without limitation the related Lessor
Grantor’s Base Indenture) with respect to the release of the related
Beneficiary’s Lien on such Relinquished Vehicle have been satisfied, then the
Lien and security interest of the Master Collateral Agent on such a
Relinquished Vehicle will be automatically released.

(b)           The Master Collateral Agent in
connection with its entry into each Financing Source and Beneficiary
Supplement, by its execution thereof, shall be deemed to have granted and shall
grant to the Master Servicer and each Lessee Grantor a separate power of
attorney with respect to each Beneficiary’s Related Vehicles, with full power
of substitution, to take any and all actions, in the name of the Master
Collateral Agent, (i) to note the Master Collateral Agent as the holder of a
first Lien on the Certificates of Title, and/or otherwise ensure that the first
Lien shown on any and all Certificates of Title (other than (to the extent so
permitted under the Financing Documents of the related Financing Source)
Certificates of Title relating to Vehicles in an Initial Fleet) is in the name
of the Master Collateral Agent, (ii) to release the Master Collateral Agent’s
Lien on any Certificate of Title in connection with the sale or disposition of
the related Vehicle permitted pursuant to the provisions of the Financing
Documents relating to such Vehicle; and (iii) to release the Master Collateral
Agent’s Lien on any Certificate of Title with respect to any Vehicle which is
not a Related Vehicle with respect to any Beneficiary.  Nothing in this Agreement shall be construed
as authorization from the Master Collateral Agent to the Master Servicer or any
Lessee Grantor to release any Lien on the Certificates of Title except upon
compliance with this Agreement and the related Financing Documents.

(c)           Each Beneficiary (other than the
Receivables Purchaser Beneficiaries, the Receivables Pledgee Beneficiaries and
the QI Beneficiaries) may cause the Master Collateral Agent to terminate the
power of attorney referred to in Section 2.7(b) (including the related
power granted under Section 2.8 or under a Financing Source and
Beneficiary Supplement) with respect to such Beneficiary after the occurrence,
and during the continuance, of a Custody Revocation Trigger Event under the
related Financing Documents by giving written notice (such notice to be substantially
in the form of Exhibit I) to such effect to the Master Servicer,
Vanguard and the Master Collateral Agent. 
In addition, if the right of the Master Servicer to act as custodian for
the Certificates of Title with respect to a Beneficiary’s Related Vehicles
shall be revoked as described in Section 2.6(c), the Master Collateral
Agent shall promptly terminate the power of attorney referred to in Sections
2.7(b) and 2.8 (including the related power granted under a
Financing Source and Beneficiary Supplement) with respect to such 

 

41

Beneficiary by
delivering a written notice (such notice to be substantially in the form of Exhibit
L) to such effect to the Master Servicer and Vanguard.  After any such termination, the Master
Collateral Agent shall not release any Lien on such Beneficiary’s Related
Vehicles (at the direction of the Master Servicer or otherwise) unless such
Beneficiary shall consent in writing to such release.

                                The Master Servicer will, upon request
of the Master Collateral Agent, provide the Master Collateral Agent or any
applicable Beneficiary with a list of Vehicles as to which the Lien of the
Master Collateral Agent has been released during the Related Month.  In connection with any release permitted
under this Section 2.7, the Master Collateral Agent and each Beneficiary
agree to execute such further documents, if any, as may be reasonably requested
by the Master Servicer to effect such release.

(d)           With respect to any Vehicle
Repurchase Rights sold to a Receivables Purchaser Beneficiary or pledged to
secure an advance made by a Beneficiary (including, without limitation a QI
Beneficiary or a Receivables Pledgee Beneficiary) or its Related Financing
Source, upon receipt of the full proceeds from such sale or advance, and upon
satisfaction of the conditions precedent to such sale or advance specified in Section
2.3 hereof then the Lien and security interest of the Master Collateral
Agent on such Vehicle Repurchase Rights and all products and proceeds thereof
will be automatically released. 
Notwithstanding the release of the Master Collateral Agent’s lien on
such Vehicle Repurchase Rights and the proceeds thereof, the Master Collateral
Agent shall continue to act as the agent of (x) each Receivables Purchaser
Beneficiary purchasing such Vehicle Repurchase Rights, but solely to the extent
that the proceeds of such Vehicle Repurchase Rights are being deposited into
the Master Collateral Account and (y) each Beneficiary (including, without
limitation a QI Beneficiary or a Receivables Pledgee Beneficiary) to whom such
Vehicle Repurchase Rights have been pledged, with respect to all payments
required to be made pursuant to the Vehicle Repurchase Rights which shall be
deposited in the Master Collateral Account in respect of such Vehicle
Repurchase Rights, and the Master Collateral Agent shall distribute such funds
in accordance with instructions received from the Master Servicer and delivered
in accordance with the terms of this Agreement. The Master Servicer shall
notify the original Beneficiary in respect of Vehicle Repurchase Rights
redesignated upon a sale or pledge of such Vehicle Repurchase Rights if
payments in respect of such redesignated Vehicle Repurchase Rights which are
required to be paid into the Master Collateral Account are not received in the
Master Collateral Account within 100 days of the Due Date for such Vehicle
Repurchase Rights.

SECTION 2.8                 Power
of Attorney.  To further evidence
each power of attorney referred to in Section 2.7, the Master Collateral
Agent agrees that upon request of the Master Servicer it will execute a
separate power of attorney substantially in the form of Exhibit E.

SECTION 2.9                 Notice
of Liquidation Event of Default and Limited Liquidation Event of Default.  Upon the receipt of notice by the Master
Collateral Agent of the occurrence of a Liquidation Event of Default or a
Limited Liquidation Event of 

 

42

Default with
respect to a Financing Source and its Related Beneficiary, the Master
Collateral Agent promptly shall forward a copy of such notice to each
Beneficiary.

SECTION 2.10               Additional
Reports.  For so long as the GM
Freeze Agreement shall be in effect and there are any Vehicles eligible under
the GM Freeze Agreement, the Master Servicer, within 10 days following the
commencement of a Freeze Period (as defined in the GM Freeze Agreement), shall
furnish or cause to be furnished to General Motors Corporation, at the address
set forth in the GM Freeze Agreement, a report (which may be on diskette,
magnetic tape or other electronic medium reasonably acceptable to General
Motors Corporation) showing the vehicle identification number and mileage of
each Vehicle eligible under the GM Freeze Agreement as of the first day of such
Freeze Period.

 

ARTICLE II

THE MASTER SERVICER

SECTION 3.1                 Acceptance of Appointment.  Each Financing Source and each Beneficiary
hereby directs the Master Collateral Agent to appoint Vanguard to act as
initial Master Servicer.  The Master
Collateral Agent, acting pursuant to such direction, hereby appoints Vanguard,
and Vanguard hereby agrees to act, as the initial Master Servicer under this
Agreement.

SECTION 3.2                 Master
Servicer Functions.  The Master
Servicer shall (together with the related Sub-Servicers, if any) service and
administer the Vehicles, and without limitation of the foregoing, the Master
Servicer shall: (i) except as provided in the Financing Documents, cause the
Master Collateral Agent to be shown as the first lienholder on all Certificates
of Title (other than (to the extent so permitted under the Financing Documents
of the related Financing Source) Certificates of Title relating to Vehicles in
an Initial Fleet), (ii) in accordance with the requirements of the Financing
Documents related to a Financing Source and as applicable thereunder, designate
Vehicles as Related Vehicles (and, to the extent provided in the related
Financing Documents, Eligible Receivables) on its computer system in accordance
with Sections 2.2 and 2.3 such that after giving effect thereto
each Beneficiary shall have designated to it as Related Vehicles on the
computer records of the Master Servicer all Vehicles that have been purchased,
financed or refinanced with funds provided from the Financing Source or as otherwise
provided in a Financing Source and Beneficiary Supplement with respect to such
Beneficiary, plus all other Vehicles leased under the Related Lease, such that
after giving effect thereto each Beneficiary shall have designated to it
Related Vehicles constituting Eligible Vehicles (and, to the extent provided in
the related Financing Documents, Eligible Receivables and other
eligible collateral)
with a collateral value (as determined under the relevant Financing Documents
relating to the Related Financing Source) not less than the collateral value
required in the Financing Documents of such Beneficiary to support the
outstanding loans or securities issued under such Financing Documents, (iii)
direct payments due under the Manufacturer Programs (to the 

 

43

extent not
deposited directly into the Master Collateral Accounts) and, to the extent
required pursuant to Section 2.5(c) hereof, payments with respect to
other Master Collateral to be deposited directly by the Manufacturers and
related auction dealers, for so long as no LKE Reallocation Trigger Event shall
have occurred and be continuing, into the Joint Master Collateral Accounts, and
for so long as an LKE Reallocation Trigger Event shall have occurred and be
continuing, into the Post LKE Reallocation Master Collateral Accounts, in each
case in accordance with this Agreement except payments which are to be
deposited directly to the Group I Collection Account, if any, (iv) deposit, for
so long as no LKE Reallocation Trigger Event shall have occurred and be
continuing, into the Joint Master Collateral Accounts, and for so long as an
LKE Reallocation Trigger Event shall have occurred and be continuing, into the
Post LKE Reallocation Master Collateral Accounts, sale proceeds (including
amounts paid to the Master Servicer by a Manufacturer as a result of the Master
Servicer’s sale of such Vehicle outside such Manufacturer’s Manufacturer
Program) and any other proceeds of the Pledged Master Collateral paid to the Master
Servicer or a Lessor Grantor or Lessee Grantor (whether as a result of a
violation of the provisions of Section 3.2(iii) or otherwise), by the
second (2nd) Business Day following the Master Servicer’s or such Lessor
Grantor’s or such Lessee Grantor’s receipt thereof, (v) remit proceeds of the
Vehicle Repurchase Rights comprising the Related Master Collateral of each
Receivables Purchaser Beneficiary paid to the Master Servicer or a Lessor
Grantor or Lessee Grantor (whether as a result of a violation of the provisions
of Section 3.2(iii) or otherwise), by the second (2nd) Business Day
following the Master Servicer’s or such Lessor Grantor’s or such Lessee Grantor’s
receipt thereof, in accordance with the Financing Documents for such
Receivables Purchaser Beneficiary, (vi) remit proceeds of the Vehicle Repurchase
Rights pledged to a QI Beneficiary on behalf of a Master Exchange Lender under
a Master Exchange Financing Agreement or pledged to a Receivable Pledgee
Beneficiary under the Related Financing Documents that are paid to the Master
Servicer or a Lessor Grantor or Lessee Grantor (whether as a result of a
violation of the provisions of Section 3.2(iii) or otherwise), by the
second (2nd) Business Day following the Master Servicer’s or such Lessor
Grantor’s or such Lessee Grantor’s receipt thereof, in accordance with the
Financing Documents related to such QI Beneficiary or Receivables Pledgee
Beneficiary, (vii) to the extent provided under the applicable Financing
Documents, turn in Vehicles owned by the Lessee Grantors and the Lessor
Grantors and covered by Manufacturer Programs to the relevant Manufacturer
within the applicable repurchase period and comply with all of its obligations
under the Manufacturer Programs, (viii) furnish or cause to be furnished the
Master Servicer’s Fleet Report as provided in Section 2.4, (ix) furnish or cause to be furnished the
Master Servicer’s Weekly VIN Report as provided in Section 2.9, (x) furnish or cause to be furnished the
information required by Section 2.10, (xi) instruct the Master
Collateral Agent and the Intermediary, as applicable, to make distributions,
withdrawals and payments from the Master Collateral Accounts in accordance with
Section 2.5(c), 2.5(d), and 2.5(e), and, for so long as no
LKE Reallocation Trigger Event shall have occurred and be continuing, in
accordance with the Master Exchange Agreement, (xii) execute and deliver, for the benefit of
the Beneficiaries, any and all documents with respect to the Vehicles and the
Manufacturer Programs and, to the extent permitted under and in compliance with

 

44

applicable law and
regulations, to commence enforcement proceedings with respect to such
Manufacturer Programs, (xiii) perform the functions described in Section 2.7,
(xiv) perform the functions of the Exchangor under the Master Exchange
Agreement and the Escrow Agreement, and (xv) otherwise administer and service
Vehicles in accordance with the Financing Documents.  The Master Servicer shall have full power and
authority, acting alone or through any party properly designated by it
hereunder (including, without limitation, the related Sub-Servicers, if any),
to do any and all things in connection with its servicing and administration
duties which it may deem necessary or desirable to accomplish such servicing
and administration duties and which does not materially adversely affect the
interests of any Beneficiary or the likelihood of repayment of the indebtedness
to the Financing Sources unless otherwise prohibited by applicable Financing
Documents.  Nothing in this Agreement
shall at any time prevent the Master Servicer from in good faith taking any
action to assure that its systems and records relating to the Vehicles and the
Financing Sources and Beneficiaries are at all times accurate.

SECTION 3.3                 The
Master Servicer Not to Resign. 
Without the prior written consent of the Master Collateral Agent, each
of the Beneficiaries and the Rating Agencies, the Master Servicer shall not
resign from the obligations and duties imposed on it hereunder.

SECTION 3.4                 Servicing Rights of Master
Collateral Agent.

(a)           If the Master Servicer shall fail to
perform any of its duties or obligations hereunder or under any Financing
Document with respect to any portion of a Beneficiary’s Related Master
Collateral, after written notice thereof to the Master Servicer and the
opportunity to cure such failure for a period of five (5) Business Days, (i)
the Master Collateral Agent, at the direction and at the expense of such
Beneficiary, shall take such action, or cause such action to be taken pursuant
to Section 4.1(d), to perform or cause to be performed such duties or
obligations with respect to such Related Master Collateral as shall be so
directed by such Beneficiary, whereupon the Master Collateral Agent shall have
full right and authority to take or cause to be taken such action so directed
and (ii) if such Beneficiary shall so direct, the Master Servicer’s right and
authority to perform any such duties or act as Master Servicer with respect to
such Beneficiary and its Related Master Collateral shall cease; provided,
in each case, that, such action or direction is permitted by the related
Financing Documents and this Agreement.

(b)           In the event that the Master
Collateral Agent is directed to take any action with respect to the Master
Collateral or perform any obligation of the Master Servicer pursuant to Section
3.4(a), the Master Servicer shall fully cooperate with the Master
Collateral Agent in any way requested by the Master Collateral Agent or the
applicable Beneficiary in order to assist the Master Collateral Agent in taking
any such action or performing any such duty.

 

45

 

SECTION 3.5                 Incumbency
Certificate.  With the delivery of
this Agreement and from time to time thereafter, each of the Lessee Grantors,
each of the Lessor Grantors and the Master Servicer shall furnish to the Master
Collateral Agent a certificate (each, an “Incumbency Certificate”)
certifying as to the incumbency and specimen signatures of officers and
employees of the Lessee Grantors, the Lessor Grantors and the Master Servicer,
respectively (the “Authorized Agents”) authorized to act, and to give
instructions and notices, on behalf of each of the Lessee Grantors, the Lessor
Grantors and the Master Servicer, respectively, hereunder.  Until the Master Collateral Agent receives a
subsequent Incumbency Certificate, the Master Collateral Agent shall be
entitled to rely on the last such Incumbency Certificate delivered to it for
purposes of determining the Authorized Agents.

SECTION 3.6                 Sub-Servicers.  The Master Servicer may delegate to a lessee
under a Lease or another Affiliate of the Master Servicer (each such delegee,
in such capacity, a “Sub-Servicer”) the performance of the Master
Servicer’s obligations as Master Servicer in respect of Master Collateral (but
the Master Servicer shall remain fully liable for its obligations in respect of
such Master Collateral under this Agreement). 
In addition, the Master Servicer may delegate to the Custodian (under
and as defined in the Custody Agreement, dated as of November 30, 2004, by and
between Vanguard and SGS Automotive Services Inc. (as amended, restated,
supplemented or otherwise modified from time to time, the “Custody Agreement”))
the performance of certain of the Master Servicer’s obligations as Master
Servicer in respect of Master Collateral, to the extent specified in the
Custody Agreement (but the Master Servicer shall remain fully liable for its
obligations in respect of such Master Collateral under this Agreement).

SECTION 3.7                 Coding
Procedures Certificate.  With the
delivery of this Agreement and on each April 30 and October 31 thereafter, the
Master Servicer shall furnish to the Master Collateral Agent a certificate (each,
a “Coding Procedures Certificate”) describing the procedures used by the
Master Servicer to identify the Related Vehicles with respect to each
Beneficiary (other than the Receivables Purchaser Beneficiaries, the
Receivables Pledgee Beneficiaries and the QI 

 

46

Beneficiaries) on
its computer system and certifying that the procedures described therein are
accurate in all material respects as of the date of such certificate.  The most recently delivered Coding Procedures
Certificate shall be deemed to update and amend Exhibit J hereto.  The Master Servicer may change the procedures
utilized by it to identify the Related Vehicles with respect to each
Beneficiary (other than the Receivables Purchaser Beneficiaries, the
Receivables Pledgee Beneficiaries and the QI Beneficiaries) on its computer
system from time to time in its sole discretion so long as such changes would
not cause the Master Servicer to be unable to correctly identify the Related
Vehicles with respect to each Beneficiary (other than the Receivables Purchaser
Beneficiaries, the Receivables Pledgee Beneficiaries and the QI Beneficiaries);
provided that within fifteen (15) Business Days of making any change to
such procedures which in the Master Servicer’s sole discretion is deemed to be
material, the Master Servicer shall deliver an updated Coding Procedures
Certificate incorporating such changes to each of the Beneficiaries (other than
the Receivables Purchaser Beneficiaries, the Receivables Pledgee Beneficiaries
and the QI Beneficiaries), the Financing Sources, the Lessee Grantors, the
Lessor Grantors and the Master Collateral Agent.  Notwithstanding the provisions of Section
5.1, any such change to the procedures shall not require the consent of any
Beneficiary, any Financing Source, any Lessee Grantor, any Lessor Grantor or
the Master Collateral Agent or require any confirmation from any of the Rating
Agencies.

ARTICLE III

THE MASTER
COLLATERAL AGENT

SECTION 4.1                 Appointment.  (a) 
Each Financing Source and each Beneficiary, by its execution of this
Agreement, appoints the Master Collateral Agent as its Master Collateral Agent
under and for purposes of this Agreement. 
Each Financing Source and each Beneficiary authorizes the Master
Collateral Agent to act on behalf of such Financing Source and Beneficiary
under this Agreement and, in the absence of other written instructions from a
Beneficiary with respect to its Related Vehicles and/or Related Master
Collateral as may be received from time to time by the Master Collateral Agent
(with respect to which the Master Collateral Agent agrees that it will comply),
subject to the other provisions of this Article IV, to exercise such
powers hereunder as are specifically delegated to or required of the Master
Collateral Agent by the terms hereof and to exercise such powers as are
provided to each Financing Source and Beneficiary with respect to its Related
Vehicles and/or other Related Master Collateral under the related Financing
Documents and with such powers as may be reasonably incidental thereto; provided
that to the extent any Financing Source or Related Beneficiary appoints a
Beneficiary Agent to perform any of the duties of the Master Collateral Agent
hereunder with respect to its Related Vehicles or Related Master Collateral,
the Master Collateral Agent shall have no obligation to perform, and shall have
no liability in respect of, such duties with respect to the Related Vehicles or
Related Master Collateral, or, to the extent such duties include the disposition
of the Related Vehicles, with respect to custody of the Certificates of Title
in respect thereto, with respect to such Financing Source and such Related
Beneficiary; provided, however, that the Master Collateral Agent
shall fully cooperate with such Beneficiary Agent in any way reasonably
requested by such Beneficiary Agent or such Beneficiary in order to assist such
Beneficiary Agent in performing any such duty (including, without limitation,
granting such Beneficiary Agent a separate power of attorney with respect to
such duties, substantially in the form of Exhibit E).  In addition, the Master Collateral Agent
shall not be liable for any acts or omissions of such Beneficiary Agent in
connection with this Agreement or any power of attorney delivered pursuant
hereto.  The Master Collateral Agent is
hereby irrevocably appointed the true and lawful attorney-in-fact of each of
the Beneficiaries, in its name and stead, for such purposes as are necessary or
desirable to effectuate the provisions of this Agreement, including, without
limitation, in exercising remedies upon or otherwise dealing with the Master
Collateral.  Each such power of attorney
is irrevocable and coupled with an interest. 
The Master Collateral Agent may transfer any such power of attorney in
connection with any delegation of its duties pursuant to Section 4.1(d).

 

47

 

(b)           If any Beneficiary represents to the
Master Collateral Agent that it has the right to act with respect to its Related
Master Collateral pursuant to its related Financing Documents, then the Master
Collateral Agent may conclusively rely upon such representation and shall
exercise any and all rights, remedies, powers and privileges available to such
Beneficiary with respect to its Related Master Collateral to the extent
and in the manner directed by such Beneficiary, at such Beneficiary’s expense
and subject to the other provisions of this Agreement (including without
limitation Section 4.4(g)), as permitted under the related Financing
Documents, including, without limitation, the transmission of notices of
default, repossession and sale of Related Vehicles, and the institution of
legal or administrative actions or proceedings. 
Each of the Lessee Grantors, the Lessor Grantors, the Beneficiaries and
the Financing Sources agrees that the Master Collateral Agent may exercise such
rights, remedies, powers and privileges in lieu of a Beneficiary in accordance
with the preceding sentence and agrees that the appropriate Lessee Grantor or
the appropriate Lessor Grantor shall reimburse the Master Collateral Agent for
such enforcement expenses only to the same extent that it would be obligated to
reimburse the applicable Beneficiary for such enforcement expenses pursuant to
the related Financing Documents.

(c)           Instructions given to the Master
Collateral Agent by any Beneficiary shall comply (and delivery of any such
instructions by a Beneficiary to the Master Collateral Agent shall be deemed to
be a representation and warranty by such Beneficiary that such instructions
comply) with the Financing Documents of such Beneficiary.

(d)           The Master Collateral Agent may at
any time delegate any duties or obligations hereunder (including, but not
limited to, any duties or obligations arising pursuant to Section 2.6(b),
2.6(c), 3.4, 4.1(a) or 4.1(b)) to any Person (i)
satisfying the requirements of Section 4.6 or (ii) approved by each
Beneficiary (or, in the case where a Beneficiary has individual rights and
remedies, approved by the applicable Beneficiary or Beneficiaries), in either
case who agrees to conduct such duties in accordance with the terms hereof; provided
that any delegation of duties or obligations of the Master Collateral Agent
provided for in Section 2.6(b) or 2.6(c) shall require the
consent of each Beneficiary (or, in the case where a Beneficiary has individual
rights and remedies, approved by the applicable Beneficiary or Beneficiaries)
(such consent not to be unreasonably withheld). 
For the avoidance of doubt, no Beneficiary may consent to, or approve
of, any such delegation with respect to the Related Master Collateral of any
other Beneficiary.  Any such delegation
shall not constitute a resignation within the meaning of Section 4.5,
and the Master Collateral Agent shall not be liable for the acts or omissions
of such Persons so long as such Persons are selected by the Master Collateral
Agent with reasonable care; provided that in any case where such
delegation is made at the direction of each Beneficiary (or, in the case where
a Beneficiary has individual rights and remedies, the applicable Beneficiary),
the Master Collateral Agent shall have no liability with respect to the
selection of such Persons (including the selection of Vanguard as Master
Servicer hereunder).  If any such
delegation occurs, notification thereof shall be given to the Master Servicer,
the Beneficiaries and the Rating Agencies.

 

48

 

(e)           If, at any time when a Default exists
under the Financing Documents related to a Beneficiary, the Master Collateral
Agent shall default in its obligation to exercise, or such Beneficiary and the
Master Collateral Agent shall be unable to agree on indemnity or reimbursement
arrangements with respect to the exercise of, the rights, remedies, powers or
privileges of such Beneficiary with respect to its Related Master Collateral in
accordance with the direction of such Beneficiary (including any rights under Sections
2.6, 3.4 or 4.1(b)), the Master Collateral Agent shall, upon
the written request of such Beneficiary, assign to such Beneficiary the Master
Collateral Agent’s security interest in, and all of its other rights hereunder
relating to, the Related Master Collateral of such Beneficiary and shall, in
the case of a default by the Master Collateral Agent, at the Master Collateral
Agent’s expense, and, in any other event, at the expense of such Beneficiary,
execute those instruments and documents necessary to effectuate such assignment
(including, if necessary, the execution of documents necessary to change the
name of the first lienholder on Certificates of Title for such Beneficiary’s
Related Vehicles to such Beneficiary or its agent or assignee) and such
Beneficiary may thereafter direct that payments that would otherwise be paid into
the Master Collateral Accounts with respect to its Related Vehicles, Eligible
Receivables or Vehicle Repurchase Rights be paid to another account permitted
by the applicable Financing Documents.

(f)            The Master Collateral Agent, in its
individual capacity or in any other capacity, may be a Beneficiary hereunder
and as such shall be entitled to all of the protections and rights of a
Beneficiary under this Agreement without regard to its capacity as Master
Collateral Agent hereunder.

(g)           Upon receipt by the Master Collateral
Agent from a Manufacturer of any information pertaining to payments made by
such Manufacturer or an auction dealer to the Master Collateral Accounts in
connection with any Manufacturer Program, the Master Collateral Agent shall
promptly provide such information to the Master Servicer.

(h)           On the date hereof, certain
Beneficiaries have requested and directed that certain duties relating to the
Related Master Collateral of such Beneficiaries be performed by Remarketing
Services of America, Inc. (the “Disposition Agent”).  Either (i) upon the occurrence of a Limited
Liquidation Event of Default or a Liquidation Event of Default under the
Financing Documents relating to a Beneficiary, or (ii) subject to the
satisfaction of the Rating Agency Confirmation Condition with respect to each
affected Series of Notes, upon the occurrence of any event described under clauses
(i), (ii), (iii) or (iv) of Section 4.04(e) of
the Disposition Agent Agreement prior to the occurrence of a Limited
Liquidation Event of Default or a Liquidation Event of Default under the
Financing Documents relating to a Beneficiary that is a party to the
Disposition Agent Agreement, such Beneficiary may direct that certain specified
duties or obligations hereunder or under such Financing Documents relating to
its Related Master Collateral be delegated by the Master Collateral Agent to
one or more designees or disposition agents specified by such Beneficiary, and
the Master Collateral Agent shall delegate such duties in accordance with such
direction.  In addition, upon the
occurrence of a Limited 

 

49

Liquidation Event
of Default or a Liquidation Event of Default under the Financing Documents
relating to a Beneficiary that is a party to the Disposition Agent Agreement,
such Beneficiary, as a Specified Beneficiary under the Disposition Agent
Agreement, may direct that certain specified duties or obligations under such
Disposition Agent Agreement be delegated by the Disposition Agent to designees
or other disposition agents specified by such Beneficiary.  The Master Collateral Agent shall fully
cooperate with such Beneficiary and with any such designees or disposition
agents in any way reasonably requested by any such designee or agent or such
Beneficiary in order to assist any such designee or disposition agent in
performing the duties and obligations of such designee or disposition agent
hereunder or under the Disposition Agent Agreement.  For the avoidance of doubt, no Beneficiary
may direct any such delegation with respect to the Related Master Collateral of
any other Beneficiary.  Any such
delegation shall not constitute a resignation or removal within the meaning of Section
4.5, and the Master Collateral Agent shall not be liable for the acts of
such Persons.  All fees and expenses
incurred by the Master Collateral Agent in transferring such duties and all
fees and expenses charged or incurred by any such designee or disposition agent
in performing such services shall be paid by the Lessee Grantors and Vanguard
in the same manner as other costs and expenses of the Master Collateral Agent
are payable by such parties as described in Section 4.8.

SECTION 4.2                 Representations.  The Master Collateral Agent hereby represents
and warrants that (i) it is a national banking association, duly organized,
validly existing and in good standing under the laws of the United States and
it has all requisite power and authority to enter into and perform its
obligations under this Agreement and (ii) the execution, delivery and
performance by it of this Agreement have been duly authorized by all necessary
corporate action on its part, and this Agreement is the legal, valid and
binding obligation of the Master Collateral Agent, enforceable against it in
accordance with its terms, except as such enforcement may be limited by
applicable bankruptcy, insolvency, moratorium or similar laws affecting
creditors’ rights generally and by the application of equitable principles.

SECTION 4.3                 Exculpatory
Provisions.  The Master Collateral
Agent makes no representations as to the value or condition of the Master
Collateral or any part thereof, as to the status or designation of any Vehicle
as a Related Vehicle to any Beneficiary pursuant to Section 2.2, as to
the title of any of the Lessee Grantors or any of the Lessor Grantors thereto,
as to the protection afforded by this Agreement, as to any statements,
representations or warranties made by any Person (other than itself) in or in
connection with this Agreement or any Financing Document, as to the validity,
execution (except its own execution), enforceability (except enforceability
against itself), priority, perfection, legality or sufficiency of this
Agreement or any Financing Document or any documents or instruments referred to
herein or therein, or the sufficiency or effectiveness or perfection or
priority of any Lien on any collateral described in this Agreement, or as to
the validity or collectibility of any obligation contemplated by this
Agreement, and the Master Collateral Agent shall incur no liability or
responsibility in respect of any such matters. 
The Master Collateral Agent shall not be responsible for insuring the
Master 

 

50

Collateral or for
the payment of taxes, charges, assessments or Liens upon the Master Collateral
or for perfecting or maintaining the perfection of its security interest in the
Master Collateral purported to be granted hereby or otherwise as to the
maintenance of the Master Collateral. 
Any reference herein to actual knowledge of the Master Collateral Agent
shall mean actual knowledge of an officer of the Master Collateral Agent
assigned to and working in its Corporate Trust Office or such other department
as the Master Collateral Agent may designate from time to time in a notice to
the Master Servicer, each of the Lessee Grantors, the Lessor Grantors and the
Beneficiaries.

SECTION 4.4                 Limitations
on Duties of the Master Collateral Agent. 
(a)  The Master Collateral Agent
undertakes to perform only the duties expressly set forth herein and no implied
duties shall be read into this Agreement. 
Nothing herein shall be deemed to constitute the Master Collateral Agent
a trustee or fiduciary for any Financing Source or any Beneficiary.

(b)           The Master Collateral Agent may
exercise the rights and powers granted to it by this Agreement, together with
such powers as are reasonably incidental thereto, but only pursuant to the
terms of this Agreement.

(c)           The Master Collateral Agent’s duty of
care shall be solely to deal with the Master Collateral as it would deal with
property of its own, and the Master Collateral Agent shall not be liable for
any error of judgment made in good faith by an officer thereof, or for any
action taken or omitted to be taken by it in accordance with this Agreement,
except to the extent caused by the gross negligence or willful misconduct of
the Master Collateral Agent.

(d)           The Master Collateral Agent shall
have no authority to grant, convey or assign the Certificates of Title or change
the notation of a security interest thereon or deal with the Certificates of
Title in any way except as expressly provided herein.

(e)           The Master Collateral Agent shall
have no liability or responsibility for (i) any release of Master Collateral by
the Master Servicer pursuant to Section 2.7, (ii) any act of the Master
Servicer taken in its own name or the name of the Master Collateral Agent, or
(iii) custody of any Certificates of Title not delivered to it or not received
in a Lockbox after the revocation of the Master Servicer’s access to the
Lockboxes and required to be held by it in connection with this Agreement.

(f)            The Master Collateral Agent shall
have no duty to calculate, compute or verify, and shall not be held in any
manner responsible for the content of the Master Servicer’s Fleet Report,
except to verify that the certificate filed therewith conforms to the form of Exhibit
C.

(g)           Except as required by the specific
terms of this Agreement, the Master Collateral Agent shall not be required to exercise
any discretion and shall have no duty to exercise or to refrain from exercising
any right, power, remedy or privilege 

 

51

granted to it
hereby, or to take any affirmative action or refrain from taking any
affirmative action hereunder, unless directed to do so by Beneficiaries
specified herein as being entitled to direct the Master Collateral Agent
hereunder (and shall be fully protected in acting or refraining from acting
pursuant to or in accordance with such directions, which shall be binding on
each of the Financing Sources and Beneficiaries).  Notwithstanding anything herein to the
contrary, the Master Collateral Agent shall not be required to take any action
(a) that in its reasonable opinion is or may be contrary to law or to the terms
of this Agreement, any Financing Document or any other agreement or instrument
relating to the Master Collateral, or (b) which might or would in its
reasonable opinion subject it or any of its directors, officers, employees or
agents to personal or financial liability unless it is indemnified hereunder to
its satisfaction (and if any indemnity should become, in the determination of
the Master Collateral Agent, inadequate, the Master Collateral Agent may call
for additional indemnity and cease to act until such additional indemnity is
given).

(h)           Subject to Section 4.8(y), the
Master Collateral Agent may, in its sole discretion, retain counsel,
independent accountants and other experts selected by it and may act in reliance
upon the advice of such counsel, independent accountants and other experts
concerning all matters pertaining to the agencies hereby created and its duties
hereunder, and shall be held harmless and shall not be liable for any action
taken or omitted to be taken by it in good faith in reliance upon or in
accordance with the statements and advice of such counsel (or counsel to
Vanguard, any of the Lessee Grantors or Lessor Grantors), accountants and other
experts.

(i)            In the event that the Master Collateral
Agent receives conflicting instructions delivered in accordance with this
Agreement, the Master Collateral Agent shall have the right to seek
instructions concerning its duties and actions under this Agreement from any
court of competent jurisdiction, unless such conflict relates to a Reassignment
Claim, in which case such conflict shall be resolved in accordance with Section
2.2.  If the Master Collateral Agent
receives unclear or conflicting instructions, it shall be entitled to refrain
from taking action until clear or non-conflicting instructions are received,
but shall inform the instructing party or parties promptly of its decision to
refrain from taking such action, unless such conflict relates to a Reassignment
Claim, in which case such conflict shall be resolved in accordance with Section
2.2.  Without limiting the foregoing,
in the event that the Master Collateral Agent receives unclear or conflicting
instructions from Beneficiaries hereunder or there is any other disagreement
between the other parties hereto resulting in adverse claims and demands being
made in connection with all or part of the Master Collateral or, in the event
that the Master Collateral Agent in good faith is in doubt as to what action it
should take hereunder, the Master Collateral Agent shall be entitled to retain
the disputed Master Collateral until the Master Collateral Agent shall have
received (i) a final order of a court of competent jurisdiction directing
delivery of such Master Collateral or (ii) a written agreement executed by the
disputing parties directing delivery of such Master Collateral in which event
the Master Collateral Agent shall disburse such Master Collateral in accordance
with such order or agreement, unless such disagreement relates to a
Reassignment Claim, 

 

52

in which case such
conflict shall be resolved in accordance with Section 2.2.  Upon request of the Master Collateral Agent,
any such court order shall be accompanied by a legal opinion by counsel for the
presenting party satisfactory to the Master Collateral Agent to the effect that
such order is final.  Expenses incurred
by the Master Collateral Agent under this paragraph shall be reimbursed
pursuant to Section 4.8.

(j)            The Master Collateral Agent shall
not have any duty to ascertain or to inquire as to the performance or
observance of any of the terms, covenants or conditions of this Agreement, any
Financing Document or any other agreements or instruments relating to the
Master Collateral on the part of any party hereto or thereto or to inspect any
books and records relating to the Master Collateral other than as it determines
necessary in the fulfillment of its own obligations hereunder.  The Master Collateral Agent may conclusively
rely on the designation of Related Vehicles on the Master Servicer’s computer
system as reported in the most recent Designation Report unless it has received
a Reassignment Claim pursuant to Section 2.2 or a Redesignation Report
pursuant to Section 2.3.

(k)           The Master Collateral Agent shall be
entitled to rely on any communication, certificate, instrument, opinion,
report, notice, paper or other document reasonably believed by it to be genuine
and correct and to have been signed, given or sent by the proper Person or Persons.  The Master Collateral Agent shall be entitled
to assume that no Default shall have occurred and be continuing and that the
Master Collateral Accounts, and any funds on deposit in or to the credit of
such Master Collateral Accounts, are not subject to any writ, order, judgment,
warrant of attachment, execution or similar process (collectively, a “writ”),
unless (i) in the case of any writ, the Master Collateral Agent has actual
knowledge thereof or (ii) the Master Collateral Agent has received written notice
from the Master Servicer, any of the Lessor Grantors, any of the Lessee
Grantors, a Beneficiary or a Financing Source that such a Default has occurred
or such writ has been issued and, in each case, continues to be in effect,
which notice specifies the nature thereof.

(l)            The Master Collateral Agent, in its
individual capacity, may accept deposits from, lend money to and generally
engage in any kind of business with the Master Servicer, any of the Lessor
Grantors, any of the Lessee Grantors, any Financing Source, any
Receivables Purchaser Beneficiary, any QI Beneficiary, any Receivables Pledgee Beneficiary, any Manufacturer and their respective
Affiliates as if it were not the agent of the Beneficiaries or the Financing
Sources.

(m)          Any action or proceeding alleging any
breach by the Master Collateral Agent of duties under this Agreement shall be
prosecuted only in the courts of the State of New York, sitting in New York
County or in the United States District Court for the Southern District of New
York.

(n)           The Master Collateral Agent shall not
be accountable for the use or application by any person of disbursements
properly made by the Master Collateral Agent in conformity with the provisions
of this Agreement.

 

53

 

(o)           The Master Collateral Agent may
exercise any of its duties hereunder by or through agents or employees.  The possession of the Master Collateral by
such agents or employees shall be deemed to be the possession of the Master
Collateral Agent.  No provision of this
Agreement shall require the Master Collateral Agent to expend or risk its own
funds or otherwise incur any financial or other liability in the performance of
any duties hereunder or in the exercise of any rights and powers hereunder
unless the Master Collateral Agent is provided with an indemnity from one or
more of the Beneficiaries or other Persons, satisfactory to the Master
Collateral Agent in its sole discretion.

(p)           The Master Collateral Agent shall
have no duty to calculate, compute or verify, and shall not be held in any
manner responsible for the content of the Master Servicer’s Weekly VIN Report,
except to verify that the certificate filed therewith conforms to the form of Exhibit
H.

(q)           The Master Collateral Agent shall
have no duty to review for accuracy, and shall not be held in any manner
responsible for the content or form of, the Coding Procedures Certificate.

(r)            The Master Collateral Agent shall
have no duty to review for accuracy, and shall not be held in any manner
responsible for the content or form of, the Redesignation Report.

SECTION 4.5                 Resignation
and Removal of Master Collateral Agent. 
(a)  The Master Collateral Agent
may, at any time with or without cause by giving sixty (60) days’ prior written
notice to the Master Servicer, each of the Lessor Grantors, each of the Lessee
Grantors and the Beneficiaries, resign and be discharged of its
responsibilities hereunder created, such resignation to become effective upon
the appointment by the Master Servicer and the Lessor Grantors of a successor
Master Collateral Agent with the approval of each Beneficiary, which approval
shall not be unreasonably withheld, and the acceptance of such appointment by
such successor Master Collateral Agent.  The
Master Servicer shall, promptly upon receipt of such notice from the Master
Collateral Agent, provide a copy of such notice to each Rating Agency.  The Master Collateral Agent may be removed by
the Master Servicer or any of the Lessor Grantors at any time (with or without
cause) upon thirty (30) days’ written notice by the Master Servicer or any of
the Lessor Grantors, as the case may be, to the Master Collateral Agent and
each of the Rating Agencies, and the approval by each Beneficiary of the
successor Master Collateral Agent appointed by the Master Servicer and the
Lessor Grantors; provided, however, that if either the Master
Servicer or any of the Lessor Grantors is in default (beyond all applicable
grace and cure periods) under this Agreement or any Financing Document, then so
long as such default continues, the right of the Master Servicer and the Lessor
Grantors to remove the Master Collateral Agent shall cease and then the Master
Collateral Agent may be removed (with or without cause) at the direction of
100% of the Beneficiaries upon thirty (30) days’ written notice to the Master
Servicer, each of the Lessor Grantors, each of the Lessee Grantors, the Master
Collateral Agent and each of the Rating Agencies; provided, further,
that no removal of 

 

54

the Master
Collateral Agent shall be effective until the appointment of a successor Master
Collateral Agent selected and approved by 100% of the Beneficiaries and
acceptance of such appointment by such Master Collateral Agent.  Any removed Master Collateral Agent shall be
entitled to its reasonable fees and expenses to the date the successor Master
Collateral Agent assumes the Master Collateral Agent’s duties hereunder.  The indemnification of Section 4.10
shall survive the termination of the other provisions of this Agreement as to
the predecessor Master Collateral Agent. 
If no successor Master Collateral Agent shall be appointed and approved
within thirty (30) days from the date of the giving of the aforesaid notice of
resignation or within thirty (30) days from the date of such notice of removal,
the Master Collateral Agent, on behalf of the Master Servicer, each of the
Lessor Grantors, each of the Lessee Grantors, each Financing Source and each
Beneficiary may appoint, or petition a court of competent jurisdiction to
appoint, a successor Master Collateral Agent to act until such time, if any, as
a successor Master Collateral Agent shall be appointed as above provided.  Any successor Master Collateral Agent so
appointed by such court shall immediately upon its acceptance of such
appointment without further act supersede any predecessor Master Collateral
Agent.  Upon the appointment of a
successor Master Collateral Agent hereunder and its acceptance of such
appointment, the predecessor Master Collateral Agent shall be discharged of and
from any and all further obligations arising in connection with this Agreement.

(b)           The appointment, designation and
acceptance referred to in paragraph (a) shall, after any required filing, be full evidence of
the right and authority to make the same and of all the facts therein recited,
and this Agreement shall vest in such successor Master Collateral Agent,
without any further act, deed or conveyance, all of the estate and title of its
predecessors and upon such filing for record the successor Master Collateral
Agent shall become fully vested with all the estates, properties, rights,
powers, duties, authority and title of its predecessors; but any predecessor
Master Collateral Agent shall nevertheless, on payment of its charges and on
the written request of the Beneficiaries, the Master Servicer, any of the
Lessor Grantors, any of the Lessee Grantors or any successor Master Collateral
Agent empowered to act as such at the time any such request is made, execute and
deliver an instrument without recourse or representation transferring to such
successor all the estates, properties, rights, powers (including any powers of
attorney), duties, authority and title of such predecessor hereunder and shall
deliver all securities and moneys held by it to such successor Master
Collateral Agent.  Upon the appointment
of a successor Master Collateral Agent hereunder, the predecessor Master
Collateral Agent shall be discharged of and from any and all further
obligations arising in connection with this Agreement; provided, however,
that the predecessor Master Collateral Agent will serve as nominee lienholder
for the successor Master Collateral Agent.

SECTION 4.6                 Qualification
of Successors to Master Collateral Agent.  
Every successor to the Master Collateral Agent appointed pursuant to Section
4.5 shall be a bank or trust company in good standing and having power so
to act and incorporated under the laws of the United States or any State
thereof or the District of Columbia, and 

 

55

shall also have
capital, surplus and undivided profits of not less than $100,000,000, if there
be such an institution with such capital, surplus and undivided profits
willing, qualified and able to accept the trust upon reasonable or customary
terms.  The Master Servicer shall give
the Rating Agencies written notice prior to any successor Master Collateral
Agent being appointed pursuant to Section 4.5.

SECTION 4.7                 Merger
of the Master Collateral Agent.  Any
corporation into which the Master Collateral Agent may be merged, or with which
it may be converted or consolidated, or any corporation resulting from any
merger, conversion or consolidation to which the Master Collateral Agent, shall
be a party shall be the Master Collateral Agent under this Agreement without
the execution or filing of any paper or any further act on the part of the
parties hereto.  The Master Collateral
Agent shall give the Rating Agencies, the Master Servicer, each of the Lessor
Grantors, each of the Lessee Grantors, each Receivables Purchaser Beneficiary,
each QI Beneficiary, each Receivables Pledgee Beneficiary and the Master
Servicer prior written notice of any such merger, conversion or consolidation.

SECTION 4.8                 Compensation
and Expenses.   Each Lessee Grantor,
severally (and to the extent not paid by a Lessee Grantor, Vanguard), (i) with
respect to any Related Master Collateral as to which it is Grantor and (ii)
with respect to any Related Master Collateral as to which a Lessor Grantor is
Grantor if such Master Collateral relates to a Related Vehicle leased by such
Lessee Grantor from such Lessor Grantor, shall pay to the Master Collateral
Agent, from time to time (x) compensation for its services hereunder for
administering the Master Collateral as set forth in the fee letter dated as of
October 14, 2003, between Vanguard Car Rental USA Inc. and the Master
Collateral Agent, as such letter may be amended, modified or supplemented from
time to time, and (y) all reasonable out-of-pocket costs and expenses of the
Master Collateral Agent (including reasonable fees and expenses of counsel) (A)
arising in connection with the preparation, execution, delivery, or
modification of this Agreement and any agreements related hereto and/or the
enforcement of any of the provisions hereof or thereof or (B) incurred in
connection with the administration of the Master Collateral, the sale or other
disposition of Master Collateral pursuant to any Financing Document and/or the
preservation, protection or defense of the Master Collateral Agent’s rights
under this Agreement and in and to the Master Collateral.

SECTION 4.9                 Stamp,
Other Similar Taxes and Filing Fees. 
Each Lessee Grantor, severally (and to the extent not paid by a Lessee
Grantor, Vanguard), (i) with respect to any Related Master Collateral as to
which it is Grantor and (ii) with respect to any Related Master Collateral as
to which a Lessor Grantor is Grantor if such Master Collateral relates to a
Related Vehicle leased by such Lessee Grantor from such Lessor Grantor, shall
indemnify and hold harmless the Master Collateral Agent from any present or
future claim for liability for any stamp or other similar tax and any penalties
or interest with respect thereto, that may be assessed, levied or collected by
any jurisdiction in connection with this Agreement or any Master Collateral.
Each Lessee Grantor, severally (and to the extent not paid by a Lessee Grantor,
Vanguard), (i) with respect to any Related Master Collateral as to which it is
Grantor and (ii) with respect to any 

 

56

Related Master
Collateral as to which a Lessor Grantor is Grantor if such Master Collateral
relates to a Related Vehicle leased by such Lessee Grantor from such Lessor
Grantor, shall pay, or reimburse the Master Collateral Agent for, any and all
amounts in respect of, all search, filing, recording and registration fees,
taxes, excise taxes and other similar imposts payable in respect of the
execution, delivery, performance and/or enforcement of this Agreement.

SECTION 4.10               Indemnification.  (a) 
Each Lessee Grantor, severally (and to the extent not paid by a Lessee
Grantor, Vanguard), (i) with respect to any Related Master Collateral as to
which it is Grantor and (ii) with respect to any Related Master Collateral as
to which a Lessor Grantor is Grantor if such Master Collateral relates to a
Related Vehicle leased by such Lessee Grantor from such Lessor Grantor, shall
pay, and indemnify and hold the Master Collateral Agent and each of the
officers, employees, directors and agents thereof harmless from and against,
any and all liabilities (including liabilities for penalties and liabilities
arising or resulting from actions or suits), obligations, losses, judgments,
demands, damages, claims, costs or expenses of any kind or nature whatsoever
that may at any time be imposed on, incurred by, or asserted against, the
Master Collateral Agent or any such officers, employees, directors or agents in
any way relating to or arising out of the execution, delivery, amendment,
enforcement, performance and/or administration of this Agreement (and any
agreements related thereto including, without limitation, the Assignment
Agreements and any disposition agent agreement), including reasonable fees and
expenses of counsel and other experts, and shall reimburse each Beneficiary for
any payments made by such Beneficiary to the Master Collateral Agent or any
such officers, employees, directors or agents for any of the foregoing provided
that such payments were permitted to be made by such Beneficiary under the
related Financing Documents; provided, however, that, except as
may be otherwise mutually agreed, none of any Lessee Grantor or Vanguard shall
be liable for the payment of any portion of such liabilities (including
liabilities for penalties and liabilities arising or resulting from actions or
suits), obligations, losses, judgments, demands, damages, claims, costs or
expenses of the Master Collateral Agent or any such officers, employees,
directors or agents which are determined by a court of competent jurisdiction
in a final proceeding to have resulted from the gross negligence or willful
misconduct of the Master Collateral Agent or any such agent.

(b)           Each of the Beneficiaries agrees in
accordance with its pro rata portion of the Master Collateral, to indemnify and
hold the Master Collateral Agent and each of its officers, employees, directors
and agents harmless to the same extent as the Lessee Grantors (and to the
extent not paid by a Lessee Grantor, Vanguard) in accordance with the foregoing
paragraph but only to the extent that the Master Collateral Agent has not been
paid by the Lessee Grantors (and to the extent not paid by a Lessee Grantor,
Vanguard) pursuant to such paragraph; provided that the applicable
Trustee’s obligation to indemnify the Master Collateral Agent shall be limited
to actions taken by the Master Collateral Agent at the direction of such
Trustee under the related Lessor Grantor Base Indenture, it being understood
that the indemnification obligation of such 

 

57

Trustee shall be
paid solely out of funds constituting servicing fees under such Lessor Grantor
Base Indenture and the related Series Supplements.

ARTICLE
II

MISCELLANEOUS

SECTION 5.1                 Amendments,
Supplements and Waivers.  This
Agreement may be amended, waived, terminated, supplemented or otherwise
modified pursuant to a writing executed by the Master Collateral Agent, each
Beneficiary, each Financing Source, each of the Lessor Grantors, each of the
Lessee Grantors and the Master Servicer; provided, however, that
(i) the consent of each Beneficiary and each Financing Source need not be
obtained in connection with the execution of a supplement or amendment that
only adds a Financing Source or Beneficiary as a party to this Agreement, (ii)
an amendment or supplement that does not affect the Related Master Collateral
of a Beneficiary or the rights of such Beneficiary may be executed without the
consent of such Beneficiary and the related Financing Source, if any (as evidenced by an Officer’s Certificate
of the Master Servicer), (iii) amendments or supplements entered into in
connection with the execution of an Exchange Agreement will not require the
consent of any Financing Source or any Beneficiary, but will be subject to such
consents and/or Rating Agency confirmations as may be required under each such
Financing Source’s and such Beneficiary’s related Financing Documents, (iv)
amendments or supplements entered into in connection with the Master Exchange
Agreement will not require the consent of any Financing Source or any
Beneficiary, but will be subject to such consents and/or Rating Agency
confirmations as may be required under each such Financing Source’s and such
Beneficiary’s related Financing Documents, and (v) an amendment may be executed
without the consent of a Beneficiary or a Financing Source if such amendment is
effected only to cure any ambiguity, to correct or supplement any provision
herein which may be inconsistent with any other provision herein or which is
otherwise defective, or to make any other provisions with respect to matters or
questions arising under this Agreement which shall not be inconsistent with the
provisions of this Agreement or any other applicable Financing Document of such
Financing Source; provided, such action pursuant to this clause (v)
shall not adversely affect the interests of a Beneficiary or a Financing Source
in any material respect.  Additional
Financing Sources or Beneficiaries may from time to time become parties hereto
and Financing Sources or Beneficiaries hereunder by the execution of a
Financing Source and Beneficiary Supplement by such additional Financing Source
or Beneficiary, the Master Collateral Agent, the Master Servicer, each of the
Lessor Grantors and each of the Lessee Grantors.  Additional Receivables Purchaser
Beneficiaries may from time to time become parties hereto and Receivables
Purchaser Beneficiaries hereunder by the execution of a Beneficiary Supplement
by such additional Receivables Purchaser Beneficiary, the Master Collateral
Agent, the Master Servicer, each of the Lessor Grantors and each of the Lessee
Grantors.  Additional Lessee Grantors and additional Lessor
Grantors may from time to time become parties hereto by the execution and
delivery of a Grantor Supplement by such additional Lessee Grantor or Lessor
Grantor, 

 

58

as the case may
be, the Master Collateral Agent, the Master Servicer and each of the Lessor
Grantors; provided that, the Rating Agency Confirmation Condition with
respect to each affected Series of Notes shall have been satisfied.  The Master Servicer shall give the Rating
Agencies and the Disposition Agent prior written notice of any amendment,
supplement, waiver or modification of this Agreement.  Upon execution of a Financing Source and
Beneficiary Supplement, a Beneficiary Supplement or a Grantor Supplement, the Master
Servicer shall furnish a copy thereof to the other parties hereto.

SECTION 5.2                 Notices.  All notices, amendments, waivers, consents
and other communications provided to any party hereto under this Agreement
shall be in writing and addressed, delivered or transmitted to such party at
its address or facsimile number set forth in clauses  (a), (b)
(c) or (d) below or at such other address or facsimile number as
may be designated by such party in a notice to the other parties.  Any notice, if mailed by certified or
registered mail and properly addressed with postage prepaid or if properly
addressed and sent by pre-paid courier service, shall be deemed given
when received; any notice, if transmitted by facsimile, shall be deemed given
when transmitted upon receipt of electronic confirmation of such, and shall be
addressed as follows:

(a)           if to the Master Servicer, any of the
Lessor Grantors, any of the Lessee Grantors (as of the date hereof) or the
Master Collateral Agent, at the address specified for such party on the
signature pages hereto;

(b)           if to any Beneficiary, Financing
Source or other Person specified in a Financing Source and Beneficiary
Supplement or Beneficiary
Supplement, at the address specified in such Financing Source and Beneficiary
Supplement or Beneficiary
Supplement; or

(c)           if to any additional Lessee Grantor
or Lessor Grantor specified in a Grantor Supplement, at the address specified
for such Lessee Grantor or Lessor Grantor in such Grantor Supplement.

(d)           if to the Disposition Agent, to
Remarketing Services of America, Inc., 6400 Main Street, Amherst, NY 14221,
Attn:  Andrew J. Shaevel, tel: (716)
564-4001, fax: (716) 564-4010, with a copy to Fiserv, Inc., 255 Fiserv Drive,
Brookfield, WI 53045-5815, Attn: Legal Department.

(e)           if to the Intermediary, to Car for a Car,
Corp., c/o J.P. Morgan Property Exchange Inc., 1001 Hingham Street, Suite 300,
Rockland, MA 02370, fax:  781-982-9558.

SECTION 5.3                 Headings.  Section, subsection and other headings used
in this Agreement are for convenience only and shall not affect the
construction of this Agreement.

SECTION 5.4                 Severability.  Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall not invalidate the
remaining 

 

59

provisions hereof,
and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction.

SECTION 5.5                 Counterparts.  This Agreement may be executed in separate
counterparts and by the different parties on different counterparts, each of
which shall be an original and all of which taken together shall constitute one
and the same instrument.

SECTION 5.6                 Conflicts
with Financing Documents; Reservation of Rights.  The parties agree that in the event of any
conflict between the provisions of this Agreement and the provisions of any
Financing Documents, the provisions of this Agreement shall control.  Except as expressly provided herein, nothing
contained in this Agreement is intended to affect or limit, in any way, the
rights that each of the Beneficiaries has insofar as the rights of such parties
and third parties are involved.  Except
as expressly provided herein, the Beneficiaries specifically reserve all their
respective rights against Vanguard, the Master Servicer, the Lessee Grantors,
the Lessor Grantors, any Financing Source and/or any third party.

SECTION 5.7                 Binding
Effect.  This Agreement shall be
binding upon and inure to the benefit of each of the parties hereto and their
respective permitted successors and assigns. 
Nothing herein is intended or shall be construed to give any other
Person any right, remedy or claim under, to or in respect of this Agreement or
the Master Collateral.

SECTION 5.8                 Governing
Law.  THIS
AGREEMENT AND ALL
MATTERS ARISING OUT OF OR IN ANY MANNER RELATING TO THIS AGREEMENT
SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK.

SECTION 5.9                 Effectiveness.  This Agreement shall become effective on the
execution and delivery hereof and shall remain in effect until no amounts are
owed to any Financing Source under any Financing Document and no Beneficiary or
Financing Source shall have any claim on the Master Collateral.

SECTION 5.10               Termination
of Beneficiary.  At any time when (a)
a Beneficiary shall not have any Related Vehicles or other Related Master
Collateral hereunder
and no amounts are then owing to the Related Financing Source, if any, under
its Financing Documents or to a Receivables Purchaser Beneficiary under its
Financing Documents and such Financing Documents have been terminated and are
of no further force or effect, or (b)(i) the Master Collateral Agent’s security
interest has been reassigned to a Beneficiary pursuant to Section 4.1(e)
and (ii) such Beneficiary has elected to terminate this Agreement in respect of
such Beneficiary, this Agreement shall terminate as to such Beneficiary upon
delivery by the applicable Beneficiary to the Master Collateral Agent of a
written notice acknowledging that the interest in favor of such Beneficiary
evidenced by the applicable Financing Source and Beneficiary 

 

60

Supplement has
been terminated.  Each Beneficiary agrees
that when the conditions described in Section 5.10(a) or 5.10(b)
have been met to its satisfaction, it shall deliver such written notice to the
Master Collateral Agent.

SECTION 5.11               Termination
of this Agreement.  At any time that
there are no Beneficiaries and the Master Exchange Agreement is no longer
effective, the Master Servicer may terminate this Agreement upon notice to the
Master Collateral Agent, and the Master Collateral Agent shall take all actions
reasonably requested by the Master Servicer, at the Master Servicer’s expense,
to evidence the termination of this Agreement and the Master Collateral Agent’s
interest in the Master Collateral, including, without limitation, execute such
documents and instruments as the Master Servicer may reasonably request in
connection with such reassignment; provided, however, that Sections
4.3, 4.4(a), (c), and (e) through (p), 4.8,
and the indemnification set forth in Sections 4.9 and 4.10 shall
survive the termination of this Agreement.

SECTION 5.12               Assignment
by Financing Sources; Exercise of Rights by Third Parties.

(a)           Each Financing Source acknowledges
that it has assigned and does hereby assign to its related Beneficiary all of
its rights and interests under this Agreement and further acknowledges that its
related Beneficiary may exercise all of such Financing Source’s rights
hereunder.

(b)           The parties hereto agree that the rights
given to any Beneficiary hereunder may be exercised by any third party
designated by such Beneficiary.

SECTION 5.13               No
Bankruptcy Petition Against Lessor Grantors or Intermediary.  The Master Collateral Agent hereby covenants
and agrees that, prior to the date which is one year and one day after the
payment in full of the latest maturing debt security issued by a Lessor
Grantor, it will not institute against, or join with any other Person in
instituting against, such Lessor Grantor or the Intermediary, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
similar proceedings under any Federal or state bankruptcy or similar law; provided,
however, that nothing in this Section 5.13 shall constitute a
waiver of any right to indemnification, reimbursement or other payment from any
Financing Source or Beneficiary pursuant to this Agreement.  In the event that the Master Collateral Agent
takes action in violation of this Section 5.13, each affected Lessor
Grantor and the Intermediary agrees that it shall file an answer with the
bankruptcy court or otherwise properly contest the filing of such a petition by
the Master Collateral Agent against such Lessor Grantor or the Intermediary or
the commencement of such action and raise the defense that the Master
Collateral Agent has agreed in writing not to take such action and should be
estopped and precluded therefrom and such other defenses, if any, as its
counsel advises that it may assert; and if the Master Collateral Agent acts in
violation of this Section 5.13 it shall be liable for and pay the costs
and expenses of such Lessor Grantor and the Intermediary in connection
therewith.  The provisions of this Section

 

61

5.13 shall survive the termination of this
Agreement, and the resignation or removal of the Master Collateral Agent.

SECTION 5.14               Jurisdiction;
Consent to Service of Process.  ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST THE MASTER SERVICER, ANY
LESSEE GRANTOR, ANY LESSOR GRANTOR, ANY FINANCING SOURCE OR ANY BENEFICIARY
WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN ANY STATE OR (TO THE EXTENT
PERMITTED BY LAW) FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE OF NEW
YORK AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE MASTER SERVICER, EACH
LESSEE GRANTOR, EACH LESSOR GRANTOR, EACH FINANCING SOURCE AND EACH BENEFICIARY
ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND
UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION OF THE AFORESAID COURTS, AND IRREVOCABLY
AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS
AGREEMENT.  THE MASTER SERVICER
DESIGNATES AND APPOINTS LORD SECURITIES, 2 WALL STREET, NEW YORK, NEW YORK
10005, AND SUCH OTHER PERSONS AS MAY HEREAFTER BE SELECTED BY THE MASTER
SERVICER AND EACH FINANCING SOURCE AND BENEFICIARY IN ITS RELATED FINANCING
SOURCE AND BENEFICIARY SUPPLEMENT SHALL HAVE APPOINTED A PERSON, IN EACH CASE
WHO HAVE IRREVOCABLY AGREED IN WRITING TO SERVE AS ITS AGENT TO RECEIVE ON ITS
BEHALF, SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDINGS IN ANY SUCH COURT, SUCH
SERVICE BEING HEREBY ACKNOWLEDGED BY THE MASTER SERVICER, EACH FINANCING SOURCE
AND EACH BENEFICIARY TO BE EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT.  A COPY OF SUCH PROCESS SO SERVED SHALL BE
MAILED BY REGISTERED MAIL TO THE MASTER SERVICER, SUCH FINANCING SOURCE OR SUCH
BENEFICIARY SO SERVED AT ITS ADDRESS PROVIDED IN THE APPLICABLE SIGNATURE PAGE
HERETO, EXCEPT THAT, UNLESS OTHERWISE PROVIDED BY APPLICABLE LAW, ANY FAILURE
TO MAIL SUCH COPY SHALL NOT AFFECT THE VALIDITY OF SERVICE OF PROCESS.  IF ANY AGENT APPOINTED BY THE MASTER
SERVICER, SUCH FINANCING SOURCE OR SUCH BENEFICIARY REFUSES TO ACCEPT SERVICE,
THE MASTER SERVICER, EACH FINANCING SOURCE AND EACH BENEFICIARY HEREBY AGREE THAT
SERVICE UPON IT BY MAIL SHALL CONSTITUTE SUFFICIENT NOTICE.  NOTHING HEREIN SHALL AFFECT THE RIGHTS TO
SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT OF
ANY FINANCING SOURCE OR BENEFICIARY TO BRING PROCEEDINGS AGAINST THE MASTER
SERVICER IN THE COURTS OF ANY OTHER JURISDICTION.

 

62

 

SECTION 5.15               Waiver
of Jury Trial.  THE MASTER
COLLATERAL AGENT, EACH LESSOR GRANTOR, EACH LESSEE GRANTOR, EACH FINANCING
SOURCE, EACH BENEFICIARY AND THE MASTER SERVICER HEREBY KNOWINGLY, VOLUNTARILY
AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT
OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION
WITH, THIS AGREEMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
(WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE MASTER COLLATERAL AGENT, ANY
FINANCING SOURCE, ANY BENEFICIARY, ANY LESSOR GRANTOR, ANY LESSEE GRANTOR OR
THE MASTER SERVICER IN CONNECTION HEREWITH OR THEREWITH.  THE MASTER SERVICER ACKNOWLEDGES AND AGREES
THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION AND
THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE MASTER COLLATERAL AGENT,
EACH FINANCING SOURCE, EACH BENEFICIARY, THE MASTER SERVICER, EACH LESSOR GRANTOR
AND EACH LESSEE GRANTOR ENTERING INTO THIS AGREEMENT.

SECTION 5.16               Insurance
Notification.  The Master Collateral
Agent shall, promptly upon its receipt of notification of any termination of or
proposed cancellation or nonrenewal of any insurance policies required to be
maintained under any of the Financing Documents, notify the Beneficiary with
respect to such Financing Documents of any such termination, proposed
cancellation or nonrenewal.

SECTION 5.17               Waiver
of Set-Off With Respect to the Lessor Grantors, the Lessee Grantors and
Vanguard.  Each of the Beneficiaries
hereby waives and relinquishes any right that it has or may have to set-off or
to exercise any banker’s lien or any right of attachment or garnishment with
respect to any funds at any time and from time to time on deposit in, or
otherwise to the credit of, any account and any claims of the Lessor Grantors,
the Lessee Grantors and Vanguard therein or with respect to any right to
payment from the Lessor Grantors, the Lessee Grantors and Vanguard, it being
understood, however, that nothing contained in this Section 5.17 shall,
or is intended to, derogate from the assignment and security interest granted
to any Beneficiary under the Financing Documents or the Master Collateral Agent
under this Agreement or impair any rights of the Beneficiaries or the Master
Collateral Agent hereunder or thereunder.

SECTION 5.18               Confidentiality.  Each party hereto (other than Vanguard, the
Lessor Grantors and the Lessee Grantors) agrees that it shall not disclose any
Confidential Information to any Person without the prior written consent of
Vanguard, the applicable Lessor Grantor or the applicable Lessee Grantor, as
the case may be, other than (a) to any Beneficiary, and then only on a
confidential basis, (b) as required by any law, rule or regulation or any
judicial process of which Vanguard, the 

 

63

applicable Lessor
Grantor or the applicable Lessee Grantor, as the case may be, has knowledge; provided
that any party hereto may disclose Confidential Information as required by law,
rule or regulation or any judicial process of which Vanguard, the applicable
Lessor Grantor or the applicable Lessee Grantor, as the case may be, does not
have knowledge if such party is prohibited by law from disclosing such
requirement to Vanguard, the applicable Lessor Grantor or the applicable Lessee
Grantor, as the case may be, and (c) in the course of litigation with Vanguard,
any of the Lessor Grantors or any of the Lessee Grantors, as the case may be,
or any Beneficiary.

“Confidential
Information” means information that Vanguard, any of the Lessor Grantors or any
of the Lessee Grantors, as applicable, furnishes to a Beneficiary on a
confidential basis, but does not include any such information that is or
becomes generally available to the public other than as a result of a
disclosure by such Beneficiary or other Person to which such Beneficiary
delivered such information or that is or becomes available to such Beneficiary
from a source other than Vanguard, any of the Lessor Grantors or any of the
Lessee Grantors, as the case maybe, provided that such source is not (1) known
to such Beneficiary to be bound by a confidentiality agreement with Vanguard,
any of the Lessor Grantors or any of the Lessee Grantors, as the case may be,
or (2) known to such Beneficiary to be otherwise prohibited from transmitting
the information by a contractual, legal or fiduciary obligation.

Notwithstanding
any other provision herein, each party hereto (and each employee,
representative or other agent of each party hereto) may disclose to any and all
Persons, without limitation of any kind, the U.S. tax treatment and U.S. tax
structure of the transaction contemplated by this Agreement and the other
documents relating to this transaction and all materials of any kind (including
opinions or other tax analysis) that are provided to such party relating to such U.S. tax
treatment and U.S. tax structure, other than any information for which
nondisclosure is reasonably necessary in order to comply with applicable
securities laws.

SECTION 5.19               No Recourse.  No recourse shall be had for the payment of
any amount owing in respect of any fee, expense or indemnity hereunder or any
other obligation or claim arising out of or based upon this Agreement with
respect to any Financing Source and its Related Beneficiary or any Receivables
Purchaser Beneficiary against any limited partner of any Lessor Grantor or
against the capital or any other asset of the general partner of any Lessor
Grantor or any member thereof or against any stockholder, employee, officer,
director or incorporator of the general partner of any Lessor Grantor or any
such member.

 

64

 

SECTION 5.20               Waiver
of Set-off.  The Master Collateral
Agent waives any right to, and agrees not to, set-off or appropriate and apply,
any and all deposits and any other indebtedness at any time held or owing by
the Master Collateral Agent to or for the credit or the account of any Lessor
Grantor, any Lessee Grantor, Vanguard or the Intermediary, against or on
account of any obligation or liability of any Lessor Grantor, any Lessee
Grantor, Vanguard or the Intermediary to the Master Collateral Agent; provided
that such waiver and agreement shall only be effective until one year and one
day after the latest maturing debt security issued by a Lessor Grantor is paid
in full.

[Remainder of Page Intentionally Blank]

 

 

65

                IN WITNESS WHEREOF, each party hereto has executed
this Agreement or caused this Agreement to be duly executed by its officer
thereunto duly authorized as of the day and year first above written.

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  VANGUARD CAR RENTAL USA INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  as Master Servicer and as grantor

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gerard J. Kennell

  
	
   

  	
   

  	
  Name:

  	
  Gerard J. Kennell

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President & Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
  6929 N. Lakewood Ave. Ste 100

  Tulsa, OK 74117

  
	
   

  	
   

  	
  Attention:

  	
  Assistant Treasurer

  
	
   

  	
   

  	
  Telephone:

  	
  918-401-6471

  
	
   

  	
   

  	
  Facsimile:

  	
  918-401-6012

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NATIONAL CAR RENTAL FINANCING LIMITED
     PARTNERSHIP, as grantor

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  NATIONAL CAR RENTAL FINANCING

  
	
   

  	
   

  	
  CORPORATION, its General Partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jill A. Gordon

  
	
   

  	
   

  	
  Name:

  	
  Jill A. Gordon

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
   

  
	
   

  	
   

  	
  Telephone:

  	
   

  
	
   

  	
   

  	
  Facsimile:

  	
   

  
								

 

	
   

  	
  ALAMO FINANCING
  L.P., as grantor

   

  
	
   

  	
  By:

  	
  ALAMO FINANCING
  L.L.C., its General Partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jill A.
  Gordon

  
	
   

  	
   

  	
  Name: Jill A.
  Gordon

  	
   

  	
   

  
	
   

  	
   

  	
  Title:Vice
  President

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone:

  	
   

  	
   

  
	
   

  	
   

  	
  Facsimile:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CITIBANK, N.A.,

  
	
   

  	
  not in its
  individual capacity but

  
	
   

  	
  solely as Master
  Collateral Agent

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Miriam Y.
  Molina

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Miriam Y. Molina

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  	
  388 Greenwich
  Street

  
	
   

  	
   

  	
   

  	
   

  	
  14th Floor

  
	
   

  	
   

  	
   

  	
   

  	
  New York, NY
  10013

  
	
   

  	
   

  	
  Attention:

  	
   

  	
  Agency and Trust
  Department

  
	
   

  	
   

  	
  Telephone:

  	
   

  	
  (212) 816-5648

  
	
   

  	
   

  	
  Facsimile:

  	
   

  	
  (212) 816-5530

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00107-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00107-of-00352.parquet"}]]