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Exhibit 10.20  

 
 

LINENS HOLDING CO. AND
  LINENS 'N THINGS, INC.
  DIRECTOR COMPENSATION POLICY    
    

as adopted by the Boards of Directors of

Linens Holding Co. and Linens 'n Things, Inc.

on June 13, 2006  

        WHEREAS, the Boards of Directors (each a "Board" and,
collectively, the "Boards") of Linens Holding Co. ("Parent") and Linens 'n Things, Inc. (the
"Company") desire to approve and adopt a policy with respect to the director compensation paid to the Chairman of the Board of Parent and the Company
(the "Chairman") and to the directors of Parent and the Company who are not employees thereof or of any other direct or indirect subsidiary of Parent
(the "Non-Employee Directors"); 

        NOW, THEREFORE, BE IT RESOLVED, that the policy for director compensation for the Chairman and the Non-Employee Directors be
and is hereby approved and adopted as follows, with retroactive effect to April 1, 2006, the date of Parent's acquisition of the Company: 

	1.
	the
Chairman and each Non-Employee Director shall be entitled to receive an annual retainer in an amount equal to $40,000, and such annual retainer shall be paid in
quarterly installments at or before the beginning of each calendar quarter, provided that the quarterly installment shall be pro-rated for the Chairman or any Non-Employee
Director first elected to a Board after the beginning of a calendar quarter;

	2.
	the
Chairman and each Non-Employee Director shall be entitled to receive a stipend of $2,000 for each joint meeting of the Boards or separate meeting of a Board attended in
person and $500 for each such meeting attended telephonically, provided that only a single stipend shall be paid for any joint meeting of the Boards;

	3.
	each
Non-Employee Director serving on a Board committee shall be entitled to receive a stipend of $1,000 for each meeting of such Board committee attended in person and
$500 for each such meeting attended telephonically, provided that only a single stipend shall be paid for any joint meeting of such Board committees;

	4.
	the
retainers and stipends shall be paid directly to the respective Chairman or Non-Employee Director or as otherwise designated thereby;

	5.
	the
retainers and stipends shall be allocated among Parent and the Company as determined by management of Parent and the Company in its discretion and pursuant to any applicable legal
or accounting requirements; and

	6.
	each
Chairman and Non-Employee Director, upon first election to the Boards, shall be entitled to receive a grant of a non-qualified stock option to purchase a
minimum of 5,000 shares of Parent's common stock, par value $0.01 per share (the "Common Stock"), such number of shares to be determined by the Board of
Parent in its discretion and which grant shall be made outside of the Linens Holding Co. Stock Option Plan (the "Plan"). 

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LINENS HOLDING CO. AND LINENS 'N THINGS, INC. DIRECTOR COMPENSATION POLICYExhibit 10.21  

Linens Holding

Grant Letter—Directors Option

(Updated 6/13/06)  

LINENS HOLDING CO.

6 Brighton Road

Clifton, NJ 07015  

                 ,
200  

[Name]

[Address]

[Address] 

	Re:
	Grant of Stock Options

Dear
[First Name]: 

        We
are pleased to inform you that you have been granted an option to purchase 5,000 shares of common stock of Linens Holding Co. (the "Company"). As further described below, the option
is denominated as a "Director Option". The Director Option has not been granted under the Company's Stock Option Plan (the "Plan"), a copy of which is attached, and shall have no effect on the number
of options that may be awarded under the Plan. However, in all other respects, the Director Option shall be treated as if it were awarded under the Plan, and shall be subject to the terms and
conditions of the Plan, except as specifically modified hereby. Capitalized terms not otherwise defined in the text are defined in the Plan. 

	1.
	Director Option:    The key terms of the Director Option are as follows:

	(a)
	Number of Shares.                

	(b)
	Exercise Price per Share.    $                  

	(c)
	Vesting.    The Director Option is fully vested and immediately exercisable.

	2.
	Termination of the Option:    Whether or not exercisable or scheduled to become exercisable, the Director Option will
terminate as provided in Section 5 of the Plan; provided that Section 5(a) of the Plan shall not apply.

	3.
	No Repurchase Right.    Section 8(c) of the Plan shall not apply to any Shares you acquire upon exercise of the
Director Option.

	4.
	Federal Taxes:    The Director Option granted to you is treated as a "nonqualified option" for federal tax purposes, which
means that when you exercise, the excess of the value of the Shares issued on exercise over the exercise price paid for the Shares is income to you, subject to wage-based withholding and
reporting. When you sell the Shares acquired upon exercise, the excess (or shortfall) between the amount you receive upon the sale and the value of the shares at the time of exercise is treated as
capital gain (or loss). State and local taxes may also apply. You should consult your personal tax advisor for more information concerning the tax treatment of your Director Option. 

 

        We
are excited to give you this opportunity to share in our future success. Please indicate your acceptance of this option grant and the terms of the Plan by signing and returning a copy
of this letter. 

Sincerely,

	LINENS HOLDING CO.	 
	

By:	

    
	

 
	Name:	    
	 
	Title:	    
	 
	

Agreed to and Accepted by:	

 
	

    
 Name: [Name]	

 

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Exhibit 4.1  

EXECUTION COPY  

 
 

AMENDMENT
  TO
  CREDIT AGREEMENT    
    

        This AMENDMENT, dated as of June 30, 2006 (this "Amendment") is entered into among THE HERTZ CORPORATION, a
Delaware corporation (together with its successors and assigns, the "Parent Borrower"), DEUTSCHE BANK AG, NEW YORK BRANCH
("DBNY"), as administrative agent (the "Administrative Agent"), and the other parties signatory hereto. 

        WHEREAS,
the Parent Borrower has entered into that certain CREDIT AGREEMENT, dated as of December 21, 2005 (as it may be amended, amended and restated, supplemented or otherwise
modified, the "Credit Agreement") among the Parent Borrower, the Lenders from time to time party thereto, the Administrative Agent, DBNY, as collateral
agent, LEHMAN COMMERCIAL PAPER INC., as syndication agent, and MERRILL LYNCH & CO., MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED, as documentation agent. 

        WHEREAS,
the terms used herein, including in the preamble and recitals hereto, not otherwise defined herein or otherwise amended hereby shall have the meanings ascribed thereto in the
Credit Agreement; 

        WHEREAS,
the Parent Borrower has requested that the Credit Agreement be amended as more fully set forth herein; 

        NOW,
THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, the Parent Borrower, the Lenders and the Administrative Agent agree as
follows: 

 
 

ARTICLE ONE: AMENDMENTS    
    

        As of the Amendment Effective Date (as defined in Article Two hereof), the Credit Agreement shall be amended as set forth in this Article One. 

        1.     Section 1.1
of the Credit Agreement (Definitions) is hereby amended by inserting in such Section the following definitions in their appropriate alphabetical order: 

        "Available Amount": the sum, without duplication, of 

(a)
50% of the Available CNI Amount accrued during the period (treated as one accounting period) beginning on October 1, 2005 to the end of the most recent fiscal quarter for which consolidated
financial statements of the Parent Borrower are available (or, in case such Available CNI Amount shall be a negative number, 100% of such negative number); plus 

(b)
the aggregate Net Proceeds and the fair value (as determined in good faith by the board of directors of the Parent Borrower) of property or assets received (x) by the Parent Borrower as
capital contributions to the Parent Borrower after the Closing Date or from the issuance or sale (other than to a Restricted Subsidiary) of its Capital Stock (other than Disqualified Stock (as defined
in the Senior Note Indenture as in effect on the Closing Date)) after the Closing Date (other than Excluded Contributions) or (y) by the Parent Borrower or any Restricted Subsidiary from the
issuance and sale by the Parent Borrower or any Restricted Subsidiary after the Closing Date of Indebtedness that shall have been converted into or exchanged for Capital Stock (other than Disqualified
Stock) of the Parent Borrower or any Parent Entity, plus the amount of any cash and the fair value (as determined in good faith by the board of directors of the Parent Borrower) of any property or
assets, received by the Parent Borrower or any Restricted Subsidiary upon such conversion or exchange; minus 

 

(c)
the sum of (i) the aggregate amount of dividends, payments and distributions made after the Closing Date pursuant to subsection 8.7(g) and (ii) the aggregate amount of Investments
made after the Closing Date pursuant to subsection 8.9(q) and then outstanding. 

For
purposes of the foregoing and subsections 8.9(p) and 8.9(q), the amount of any Investment outstanding at any time shall be the original cost of such Investment, reduced (at the Parent Borrower's
option) by any dividend, distribution, interest payment, return of capital, repayment or other amount or value received in respect of such Investment; provided, that to the extent that the amount of
Investments outstanding at any time pursuant to subsection 8.9(q) is so reduced by any portion of any such amount or value that would otherwise be included in the calculation of Available Amount
pursuant to paragraph (a) above, such portion of such amount or value shall not be so included. 

"Available CNI Amount": for any period, the net income (loss) of the Parent Borrower and its Restricted Subsidiaries, determined on a consolidated basis
in accordance with GAAP and before any reduction in respect of preferred stock dividends; provided, that there shall not be included in such Available
CNI Amount: 

(a)
any net income (loss) of any Person that is not a Restricted Subsidiary of the Parent Borrower, except that (i) subject to the limitations contained in clause (c) below, the Parent
Borrower's equity in the net income of any such Person for such period shall be included in such Consolidated Net Income up to the aggregate amount actually distributed by such Person during such
period to the Parent Borrower or a Restricted Subsidiary as a dividend or other distribution (subject, in the case of a dividend or other distribution to a Restricted Subsidiary, to the limitations
contained in clause (b) below) and (ii) the Parent Borrower's equity in the net loss of such Person shall be included to the extent of the aggregate Investment of the Parent Borrower or
any of its Restricted Subsidiaries in such Person; 

(b)
solely for purposes of determining the amount available for payments under clause (a) of the definition of "Available Amount", any net income (loss) of any Restricted Subsidiary that is not
a Subsidiary Guarantor if such Restricted Subsidiary is subject to restrictions, directly or indirectly, on the payment of dividends or the making of similar distributions by such Restricted
Subsidiary, directly or indirectly, to the Parent Borrower by operation of the terms of such Restricted Subsidiary's charter or any agreement, instrument, judgment, decree, order, statute or
governmental rule or regulation applicable to such Restricted Subsidiary or its stockholders (other than (i) restrictions that have been waived or otherwise released, (ii) restrictions
pursuant to the Additional Senior Notes under the Senior Indenture, the Senior Subordinated Notes, the Senior Indenture or the Senior Subordinated Indenture and (iii) restrictions in effect on
the Closing Date with respect to a Restricted Subsidiary and other restrictions with respect to such Restricted Subsidiary that taken as a whole are not materially less favorable to the Lenders than
such restrictions in effect on the Closing Date), except that (A) subject to the limitations contained in clause (c) below, the Parent Borrower's equity in the net income of any such
Restricted Subsidiary for such period shall be included in such Available CNI Amount up to the aggregate amount of any dividend or distribution that was or that could have been made by such Restricted
Subsidiary during such period to the Parent Borrower or another Restricted Subsidiary (subject, in the case of a dividend that could have been made to another Restricted Subsidiary, to the limitation
contained in this clause) and (B) the net loss of such Restricted Subsidiary shall be included
to the extent of the aggregate Investment of the Parent Borrower or any of its other Restricted Subsidiaries in such Restricted Subsidiary; 

(c)
any gain or loss realized upon the sale or other disposition of any asset of the Parent Borrower or any Restricted Subsidiary (including pursuant to any sale/leaseback transaction) 

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that
is not sold or otherwise disposed of in the ordinary course of business (as determined in good faith by the board of directors of the Parent Borrower); 

(d)
any item classified as an extraordinary, unusual or nonrecurring gain, loss or charge (including fees, expenses and charges associated with the Transactions and any related transactions, and any
acquisition, merger or consolidation after the Closing Date); 

(e)
the cumulative effect of a change in accounting principles; 

(f)
all deferred financing costs written off and premiums paid in connection with any early extinguishment of Indebtedness; 

(g)
any unrealized gains or losses in respect of any foreign exchange contract, currency swap agreement or other similar agreement or arrangements (including derivative agreements or arrangements); 

(h)
any unrealized foreign currency transaction gains or losses in respect of Indebtedness of any Person denominated in a currency other than the functional currency of such Person; 

(i)
any non-cash compensation charge arising from any grant of stock, stock options or other equity based awards; 

(j)
to the extent otherwise included in such Available CNI Amount, any unrealized foreign currency translation or transaction gains or losses in respect of Indebtedness or other obligations of the
Parent Borrower or any Subsidiary owing to the Parent Borrower or any Subsidiary; and 

(k)
any non-cash charge, expense or other impact attributable to application of the purchase method of accounting (including the total amount of depreciation and amortization, cost of
sales or other non-cash expense resulting from the write-up of assets to the extent resulting from such purchase accounting adjustments). 

In
the case of any unusual or nonrecurring gain, loss or charge not included in such Available CNI Amount pursuant to clause (d) above in any determination thereof, the Parent Borrower will
deliver an officer's certificate to the Administrative Agent promptly after the date on which such Available CNI Amount is so determined, setting forth the nature and amount of such unusual or
nonrecurring gain, loss or charge. 

In
addition, for purposes of clause (a) of the definition of "Available Amount", the Available CNI Amount for any period ending on or prior to the Closing Date shall be determined based upon
the net income (loss) reflected in the consolidated financial statements of the Parent Borrower for such period; and each Person that is a Restricted Subsidiary upon giving effect to the Transactions
shall be deemed to be a Restricted Subsidiary, and the Transactions shall not constitute a sale or disposition under clause (c) above, for purposes of such determination. 

"Available Excluded Contribution Amount": the aggregate amount of Excluded Contributions, minus the sum of (i) the aggregate amount of dividends,
payments and distributions made after the Closing Date pursuant to subsection 8.7(h) and (ii) the aggregate amount of Investments made after the Closing Date pursuant to subsection 8.9(r) and
then outstanding. 

"Brazilian Indebtedness": Indebtedness permitted by subsection 8.2(v) of (a) Car Rental System do Brasil Locacão de
Veículos Ltda or any successor in interest thereto and/or (b) any other Subsidiary engaged in, or Special Purpose Entity otherwise supporting or relating to, the business
of leasing or renting Vehicles in Brazil. 

"Consolidated Funded Indebtedness": at the date of determination under subsection 7.10, all long term debt (including the current portion thereof) of
the Parent Borrower and its consolidated 

3

 

Subsidiaries
as determined on a consolidated basis in accordance with GAAP and as disclosed on the Parent Borrower's consolidated balance sheet. 

"Consolidated Quarterly Tangible Assets": as of any date of determination, the total assets less the sum of the goodwill, net, and other intangible
assets, net, in each case reflected on the consolidated balance sheet of the Parent Borrower and its Restricted Subsidiaries as at the end of any fiscal quarter of the
Parent Borrower for which such a balance sheet is available, determined on a consolidated basis in accordance with GAAP. 

"Consolidated Tangible Assets": as of any date of determination, the amount equal to (x) the sum of Consolidated Quarterly Tangible Assets as at
the end of each of the most recently ended four fiscal quarters of the Parent Borrower for which a calculation thereof is available, divided by (y) four;  provided, that Consolidated Tangible Assets
shall not be less than $14,426,000,000. 

"Excluded Contribution": Net Proceeds, or the Fair Market Value of property or assets, received by the Parent Borrower as capital contributions to the
Parent Borrower after the Closing Date or from the issuance or sale (other than to a Subsidiary) of Capital Stock (other than Disqualified Stock (as defined in the Senior Note Indenture as in effect
on the Closing Date)) of the Parent Borrower, in each case to the extent designated as an Excluded Contribution by the Parent Borrower and not previously included in the calculation of Available CNI
Amount for purposes of determining whether a dividend, payment or distribution may be made pursuant to subsection 8.7(g) or an Investment may be made pursuant to subsection 8.9(q). 

"Fair Market Value": with respect to any asset or property, the fair market value of such asset or property as determined in good faith by the board of
directors of the Parent Borrower, whose determination will be conclusive. 

"Most Recent Four Quarter Period": the four fiscal quarter period of the Parent Borrower ending on the last date of the most recently completed fiscal
year or quarter for which financial statements of the Parent Borrower have been (or have been required to be) delivered under subsection 7.1(a) or (b). 

"Net Proceeds": with respect to any issuance or sale of any securities of the Parent Borrower or any Subsidiary by the Parent Borrower or any
Subsidiary, or any capital contribution, means the cash proceeds of such issuance, sale or contribution net of attorneys' fees, accountants' fees, underwriters' or placement agents' fees, discounts or
commissions and brokerage, consultant and other fees actually incurred in connection with such issuance, sale or contribution and net of taxes paid or payable as a result thereof. 

"Restricted Subsidiary": as such term is defined in the Senior Indenture, as of the date hereof. 

"Senior Indenture": the Indenture governing the U.S. Dollar 8.875% Senior Notes due 2014 and the Euro 7.875% Senior Notes due 2014, dated
December 21, 2005, among CCMG Acquisition Corporation, as Issuer, the Subsidiary Guarantors from time to time party thereto and Wells Fargo Bank, National Association, as Trustee. 

"Unrestricted Subsidiary": as such term is defined in the Senior Indenture, as of the date hereof. 

        2.     The
definition of "Cumulative Excess Cash Flow" in Section 1.1 of the Credit Agreement (Definitions) is hereby amended by (a) deleting "in any period",
(b) adding the words "(but not less than zero in any period)" after "and Excess Cash Flow" and (c) adding the following sentence at the end of the definition: 

        For
purposes of such calculation, Excess Cash Flow shall be calculated without reduction for any amount applied as contemplated by clause (b) of the definition of the term "Not
Otherwise Applied." 

4

 

        3.     The
definition of "Foreign Fleet Financing Documents" in Section 1.1 of the Credit Agreement (Definitions) is hereby amended by adding the words "or otherwise
governing the terms thereof." at the end thereof. 

        4.     The
definition of "GAAP" in Section 1.1 of the Credit Agreement (Definitions) is hereby amended by adding the following language after the words "in subsections
8.1, 8.2 and 8.8 and all defined terms relating thereto,": 

and
the defined terms "Available CNI Amount," "Consolidated Quarterly Tangible Assets" and "Consolidated Tangible Assets," 

        5.     Section 5.1(a)
of the Credit Agreement (Financial Condition) is hereby amended by deleting the word "Hertz" and replacing it with the words "the Parent Borrower"
in the first sentence. 

        6.     Section 5.13(b)
of the Credit Agreement (ERISA) is hereby amended by adding a ")" after the word "Authorities" and before the ";" in clause (e). 

        7.     Section 5.17
of the Credit Agreement (Purpose of Loans) is hereby amended by adding the words "and ABL Facility Loans" after the words "Assumed Indebtedness" in
the second sentence. 

        8.     Section 7.1(b)(y)
of the Credit Agreement (Financial Statements) is hereby amended by deleting the word "audited" and replacing it with the word "unaudited". 

        9.     Section 7.9(a)
of the Credit Agreement (After-Acquired Real Property and Fixtures) is hereby amended by adding the word "thereon" after the words "With respect to
any owned real property or fixtures" in the first sentence. 

        10.   Section 7.9(c)
of the Credit Agreement (After-Acquired Real Property and Fixtures) is hereby amended by adding the words "or any Subsidiary of a Foreign
Subsidiary" after the words "Special Purpose Subsidiary" in the second to last parenthetical phrase in clause (i). 

        11.   Section 8.2(e)(i) of
the Credit Agreement (Limitation on Indebtedness) is hereby amended by deleting the words "subclause (c) thereof" in
clause (2) of the proviso and replacing them with "subclause (C) thereof". 

        12.   Section 8.3(h)
of the Credit Agreement (Limitation on Liens) is hereby amended by (a) adding the words "or refinance" after the word "finance" in
clause (i) and (b) adding the words "or refinanced" after the word "financed" in clause (ii) of the proviso. 

        13.   Section 8.3(j)
of the Credit Agreement (Limitation on Liens) is hereby amended by (a) deleting the word "or" before clause (ii) thereof and
replacing it with "," and (b) adding ", or (iii) contemplated by subsection 8.2(t)(ii)" at the end of clause (ii) thereof immediately prior to ";". 

5

  

        14.   Section 8.3(r) of the Credit Agreement (Limitation on Liens) is hereby amended by (a) deleting the word "or" before the words "Guarantee Obligations" and
replacing it with a "," and (b) adding the following words to the end of the sentence ", or other liabilities or obligations of the applicable Subsidiary not prohibited by this Agreement;" 

        15.   Section 8.3(t)(i) of
the Credit Agreement (Limitation on Liens) is hereby amended by adding the words "(or Guarantee Obligations of such Indebtedness
permitted by Section 8.4(m))" after the words "Liens securing Indebtedness permitted by subsection 8.2(e)" in the first sentence. 

        16.   Section 8.3(t)(iii) of
the Credit Agreement (Limitation on Liens) is hereby amended by deleting the number "$52,000,000" in the proviso and replacing it
with the number "$75,000,000". 

        17.   Section 8.4(o)
of the Credit Agreement (Limitation on Guarantee Obligations) is hereby amended by deleting the words "permitted by" in clause (ii) of the
proviso and replacing them with the words "outstanding under". 

        18.   Section 8.6
of the Credit Agreement (Limitation on Sale of Assets) is hereby amended by adding the following language (and the existing clauses (i) and
(j) contained in Section 8.6 of the Credit Agreement shall be recaptioned as clauses (j) and (k), respectively): 

(i)
the sale or other Disposition of (x) the properties listed as items 2, 11, 18, 20, 21, 24, 36, 39, 42 and 48 on Schedule 5.8 and (y) the property located at 350 South Hale
Avenue, Escondido, California; 

        19.   Section 8.7
of the Credit Agreement (Limitation on Dividends) is hereby amended by deleting the word "and" at the end of clause (e) thereof and deleting
clause (f) in its entirety and replacing it with the following: 

(f)
in addition to cash dividends, payments and distributions expressly permitted by this subsection 8.7, the Parent Borrower may make cash dividends, payments and distributions in an aggregate amount
not to exceed 1.0% of Consolidated Tangible Assets less any Investments made pursuant to Section 8.9(p) and then outstanding; 

(g)
the Parent Borrower may pay or make any other dividend, payment or distribution in an amount not exceeding the Available Amount immediately prior to the time of the payment or making of such
dividend, payment or distribution; provided that no Default or Event of Default has occurred and is continuing or would result therefrom; and 

(h)
the Parent Borrower may pay or make any other dividend, payment or distribution in an amount not exceeding the Available Excluded Contribution Amount immediately prior to the time of the payment
or making of such dividend, payment or distribution. 

        20.   Section 8.9
of the Credit Agreement (Limitation on Investments) is hereby amended by (a) inserting the words "(other than any such consideration securing
Indebtedness as permitted by subsection 8.3(t)(i))" after the words "Loan Party" where it appears in the proviso to clause (j) and (b) inserting the words "(other than any such
securities or other property securing Indebtedness as permitted by subsection 8.3(t)(i))" after the words "Loan Party" where it appears in the proviso to clause (m). 

        21.   Section 8.9(k)
of the Credit Agreement (Limitations on Investments, Loans and Advances) is hereby amended by deleting the words "at any time" where it first
appears and inserting the words "outstanding at any time" after the number "$20,000,000". 

6

 

        22.   Section 8.9
of the Credit Agreement (Limitations on Investments, Loans and Advances) is hereby amended by replacing clause (p) in its entirety with the
following and recaptioning existing clause (q) as (s): 

(p)
in addition to Investments otherwise expressly permitted by this subsection 8.9, investments by the Parent Borrower or any of its Subsidiaries in an aggregate amount outstanding at any time not to
exceed the greater of (x) 1.0% of Consolidated Tangible Assets less any cash dividends, payments or distributions made pursuant to Section 8.7(f) and (y) $400,000,000;  provided that (in
the case of this clause (y)) such amount shall be increased by the amount of Cumulative Excess Cash Flow Not Otherwise Applied
(which shall be available for use hereunder only at any time that the Consolidated Leverage Ratio of the Parent Borrower for the Most Recent Four Quarter Period less than or equal to 3.75 to 1.00); 

(q)
any Investment in an amount that does not exceed the Available Amount immediately prior to the time of the making of such Investment; provided that
no Default or Event of Default has occurred and is continuing or would result therefrom; 

(r)
any Investment in an amount that does not exceed the Available Excluded Contribution Amount immediately prior to the time of the making of such Investment; and 

        23.   Section 8.10(b)(iv) of
the Credit Agreement (Limitation on Certain Acquisitions) is hereby amended by inserting the words "of the Parent Borrower for the
Most Recent Four Quarter Period" immediately after the words "Consolidated Leverage Ratio". 

        24.   Section 8.12
of the Credit Agreement (Limitation on Sale and Leaseback Transactions) is hereby amended by deleting the section in its entirety and replacing it
with the following: 

8.12
Limitation on Sale and Leaseback Transactions.    Enter into any arrangement with any Person providing for the leasing by the Parent
Borrower or any of its Subsidiaries that is a Loan Party of real or personal property which has been or is to be sold or transferred by the Parent Borrower or any such Subsidiary to such Person or to
any other Person to whom funds have been or are to be advanced by such Person on the security of such property or rental obligations of the Parent Borrower or such Subsidiary, which sale or transfer
occurs more than 90 days after the acquisition of such property by the Parent Borrower or any such Subsidiary (any of such arrangements, a "Sale and Leaseback
Transaction"), unless: 

(a)
the property sold and/or leased pursuant to such Sale and Leaseback Transaction consists of Rental Car Vehicles and/or related rights and/or assets; 

(b)
any lease entered into pursuant to such Sale and Leaseback Transaction constitutes Indebtedness permitted by subsection 8.2(e); 

(c)
such Sale and Leaseback Transaction involves property with a book value of $5,000,000 or less (and is not part of a series of related Sale and Leaseback Transactions involving property with an
aggregate value in excess of such amount and entered into with a single Person or group of Persons); or 

(d)
(i) the Parent Borrower shall be in compliance, on a pro forma basis after giving effect to the consummation of the Sale and Leaseback Transaction and the application of the proceeds
thereof, with the Consolidated Leverage Ratio set forth in subsection 8.1(a), recomputed as at the last day of the most recently ended fiscal quarter of the Parent Borrower for which the relevant
information is available as if such Sale and Leaseback Transaction had been consummated on the first day of the relevant period for testing such compliance (such calculation to be made in a manner
reasonably satisfactory to the Administrative Agent and to be evidenced by a certificate in form and substance reasonably satisfactory to the Administrative Agent signed by a Responsible Officer of
the Parent Borrower and delivered to 

7

 

the
Administrative Agent (which shall promptly deliver copies to each Lender) at least three Business Days prior to the consummation of such Sale and Leaseback Transaction), (ii) the lease
entered into by the Parent Borrower or any of its Subsidiaries in connection with such Sale and Leaseback Transaction is either (x) a Financing Lease or (y) a lease the payments under
which will be treated as an operating expense for purposes of determining EBITDA, and (iii) an amount equal to 100% of the Net Cash Proceeds of such Sale and Leaseback Transaction is applied in
accordance with subsection 4.4(b)(iv). 

        25.   Section 8.14(a)
(Limitation on Optional Payments and Modifications of Debt Instruments and Other Documents) is hereby amended by deleting the words "most recently
completed fiscal period" and replacing them with the words "Most Recent Four Quarter Period". 

        26.   Section 8.16
of the Credit Agreement (Limitation on Negative Pledge Clauses) is hereby amended by deleting the language in clause (b) after the words "or
acquired thereby)," and replacing it with the following: 

(c)
any agreement governing or relating to Indebtedness permitted by subsection 8.2(e) (in which case, any prohibition or limitation shall only be effective against the property, assets and revenues
financed or refinanced thereby or securing such Indebtedness as permitted by subsection 8.3(t), and any property, assets and revenues not constituting Collateral and securing such Indebtedness as
permitted by other provisions of subsection 8.3), (d) operating leases of real property entered into in the ordinary course of business, or (e) agreements relating to or arising out of
Vehicle Rental Concession Rights. 

        27.   Section 9(e)(A)(i)(x) of
the Credit Agreement (Events of Default) is hereby amended by adding the words ", and excluding any Brazilian Indebtedness" after
the words "the Reimbursement Amount." 

        28.   Section 9(e)(A)(i)(y)
of the Credit Agreement (Events of Default) is hereby amended by adding the words "(other than any Guarantee Obligation in respect of
Brazilian Indebtedness)" after the words "in the payment of any Guarantee Obligation". 

        29.   Section 9(e)(A)(ii) of
the Credit Agreement (Events of Default) is hereby amended by: (a) adding the words ", and excluding any Brazilian
Indebtedness" after the words "the Reimbursement Amount", and (b) adding the words "(other than any Guarantee Obligation in respect of Brazilian Indebtedness)" after the words "or Guarantee
Obligation". 

 
 

ARTICLE TWO: CONDITIONS PRECEDENT TO EFFECTIVENESS    
    

        Each provision set forth in Article One hereof shall be effective as of the date (with respect to each such provision, the "Amendment
Effective Date") on which each of the following conditions with respect to each provision shall have been satisfied: 

        1.     The
Parent Borrower, the Administrative Agent and the requisite Lenders shall have indicated their consent by the execution and delivery of the signature pages to the
Administrative Agent. 

        2.     The
Guarantors shall have indicated their consent to the Amendment by the execution and delivery of the Consent (the
"Consent") attached hereto as Annex I, dated the date hereof, by and among the Guarantors. 

        3.     The
Parent Borrower shall have paid all fees due to the Administrative Agent, the Collateral Agent and Deutsche Bank Securities Inc. 

8

 

 
 

ARTICLE THREE: REPRESENTATIONS AND WARRANTIES    
    

        In order to induce the Agents and Lenders to enter into this Amendment, the Parent Borrower represents and warrants to each Agent and each Lender, that: 

        1.    Representations and Warranties.    As of the Amendment Effective Date, each of the representations and
warranties made by any Loan Party pursuant to this Amendment or any other Loan Document (or in any amendment, modification or supplement thereto) to which it is a party, and each of the
representations and warranties contained in any certificate furnished at any time by or on behalf of any
Loan Party pursuant to this Amendment or any other Loan Document shall, except to the extent that they relate to a particular date, be true and correct in all material respects on and as of such date
as if made on and as of such date. 

        2.    Corporate Power and Authority.    As of the Amendment Effective Date, the Parent Borrower has the corporate
power and authority, and the legal right, to enter into and perform this Amendment. The execution, delivery and performance of this Amendment has been duly authorized by all necessary corporate action
on the part of the Parent Borrower. 

        3.    No Conflict; Governmental Consents.    The execution and delivery by the Parent Borrower of this Amendment, and
performance by the Parent Borrower of the Credit Agreement as amended hereby, will not (a) violate any Requirement of Law or Contractual Obligation of such Loan Party in any respect that would
reasonably be expected to have a Material Adverse Effect, or (b) result in, or require, the creation or imposition of any Lien (other than any Lien permitted by subsection 8.3 of the Credit
Agreement) on any of its properties or revenues pursuant to any such Requirement of Law or Contractual Obligation. 

        4.    Binding Obligation.    (a) This Amendment constitutes a legal, valid and binding obligation of the
Parent Borrower, enforceable against the Parent Borrower in accordance with its terms, except as enforceability may be limited by applicable domestic or foreign bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the enforcement of creditors' rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law). 

        (b)   The
Consent, when executed and delivered by each Guarantor, will constitute a legal, valid and binding obligation of such Guarantor, enforceable against such Guarantor
in accordance with its terms, except as enforceability may be limited by applicable domestic or foreign bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of
creditors' rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law). 

        5.    No Default.    As of the Amendment Effective Date, no Default or Event of Default has occurred and is
continuing. 

 
 

ARTICLE FOUR: MISCELLANEOUS    
    

        1.     The
provisions of this Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Other than in
accordance with Section 8.5 of the Credit Agreement, the Parent Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of
each Lender. No Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with Section 11.6 of the Credit Agreement. 

        2.     Except
as expressly amended hereby, the Credit Agreement and all other documents, agreements and instruments relating thereto are and shall remain unmodified and in full
force and effect and are hereby ratified and confirmed. On and after the Amendment Effective Date, each reference in the Credit Agreement to "this Agreement", "hereunder", "hereof", "herein" or words
of like import, and each reference in the Notes to the Credit Agreement, shall mean and be a reference 

9

 

to
the Credit Agreement as amended hereby, and this Amendment and the Credit Agreement shall be read together and construed as a single instrument. 

        3.     Any
provision of this Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition
or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction. 

        4.     The
execution, delivery and performance of this Amendment shall not, except as expressly provided herein, constitute a waiver of any provision of, or operate as a waiver
of any right, power or remedy of any Agent or Lender under, the Credit Agreement or any of the other Loan Documents. 

        5.     Section
headings herein are included herein for convenience of reference only and shall not constitute a part hereof for any other purpose or be given any substantive
effect. 

        6.     THIS
AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK. 

        7.     This
Amendment may be executed by one or more of the parties to this Amendment on any number of separate counterparts (including by telecopy), and all of such
counterparts taken together shall be deemed to constitute one and the same instrument. 

        [The
remainder of this page is intentionally left blank.] 

10

 

	 	 	THE HERTZ CORPORATION
	

 	
 	
By:	

/s/  HAROLD E. ROLFE      
 Name: Harold E. Rolfe

Title: Senior Vice President, General Counsel and Secretary

11

 

	 	 	DEUTSCHE BANK AG, NEW YORK BRANCH
 as Administrative Agent,
	

 	
 	

By:	

/s/  SUSAN LEFEVRE      
 Name:  Susan LeFevre

Title:    Director
	

 	
 	

By:	

/s/  EVELYN THIERRY      
 Name:  Evelyn Thierry

Title:    Vice President

12

  

ANNEX I 

 
 

CONSENT OF GUARANTORS    
    

        Each of the undersigned is a Guarantor of the Borrower Obligations of each Borrower pursuant to the Guarantee and Collateral Agreement (as defined in the Credit
Agreement) and hereby (a) consents to the foregoing Amendment, (b) acknowledges that, notwithstanding the execution and delivery of the foregoing Amendment, the Guarantor Obligations of
such Guarantor are not impaired or affected and all guaranties made by such Guarantor pursuant to the Guarantee and Collateral Agreement and all Liens granted by such Guarantor as security for the
Guarantor Obligations of such Guarantor pursuant to the Guarantee and Collateral Agreement continue in full force and effect, and (c) confirms and ratifies its obligations under each of the
Loan Documents executed by it. Capitalized terms used herein without definition shall have the meanings given to such terms in the Amendment to which this Consent is attached or in the Credit
Agreement referred to therein or in the Guarantee and Collateral Agreement, as applicable. 

        IN
WITNESS WHEREOF, each of the undersigned has executed and delivered this Consent of Guarantors as of the 30th day of June 2006. 

(Signature pages follow)  

	 	 	HERTZ INVESTORS, INC.
	
 	
 	

By:	

/s/  HAROLD E. ROLFE      

	 	 	 	Name: Harold E. Rolfe
	 	 	 	Title: Vice President and Secretary
	

 	
 	
HERTZ EQUIPMENT RENTAL CORPORATION
	
 	
 	

By:	

/s/  HAROLD E. ROLFE      

	 	 	 	Name: Harold E. Rolfe
	 	 	 	Title: Vice President and Secretary
	

 	
 	
BRAE HOLDING CORP.
	
 	
 	

By:	

/s/  HAROLD E. ROLFE      

	 	 	 	Name: Harold E. Rolf
	 	 	 	Title: Vice President and Secretary
	 	 	 	 	 

13

 

	

 	
 	
HERTZ CLAIM MANAGEMENT CORPORATION
	
 	
 	

By:	

/s/  ROBERT H. RILLINGS      

	 	 	 	Name: Robert H. Rillings
	 	 	 	Title: Treasurer
	

 	
 	
HCM MARKETING CORPORATION
	
 	
 	

By:	

/s/  ROBERT H. RILLINGS      

	 	 	 	Name: Robert H. Rillings
	 	 	 	Title: Treasurer
	

 	
 	
HERTZ LOCAL EDITION CORP.
	
 	
 	

By:	

/s/  HAROLD E. ROLFE      

	 	 	 	Name: Harold E. Rolfe
	 	 	 	Title: Secretary
	

 	
 	
HERTZ LOCAL EDITION TRANSPORTING, INC.
	
 	
 	

By:	

/s/  HAROLD E. ROLFE      

	 	 	 	Name: Harold E. Rolfe
	 	 	 	Title: Secretary
	

 	
 	
HERTZ GLOBAL SERVICES CORPORATION
	
 	
 	

By:	

/s/  HAROLD E. ROLFE      

	 	 	 	Name: Harold E. Rolfe
	 	 	 	Title: Vice President and Secretary
	

 	
 	
HERTZ SYSTEM, INC.
	
 	
 	

By:	

/s/  HAROLD E. ROLFE      

	 	 	 	Name: Harold E. Rolfe
	 	 	 	Title: Vice President and Secretary
	 	 	 	 	 

14

 

	

 	
 	
HERTZ TECHNOLOGIES, INC.
	
 	
 	

By:	

/s/  HAROLD E. ROLFE      

	 	 	 	Name: Harold E. Rolfe
	 	 	 	Title: Secretary
	

 	
 	
HERTZ TRANSPORTING, INC.
	
 	
 	

By:	

/s/  HAROLD E. ROLFE      

	 	 	 	Name: Harold E. Rolfe
	 	 	 	Title: Vice President and Secretary
	

 	
 	
SMARTZ VEHICLE RENTAL CORPORATION
	
 	
 	

By:	

/s/  HAROLD E. ROLFE      

	 	 	 	Name: Harold E. Rolfe
	 	 	 	Title: Vice President and Secretary

15

QuickLinks

AMENDMENT TO CREDIT AGREEMENT

ARTICLE ONE: AMENDMENTS

ARTICLE TWO: CONDITIONS PRECEDENT TO EFFECTIVENESS

ARTICLE THREE: REPRESENTATIONS AND WARRANTIES

ARTICLE FOUR: MISCELLANEOUS

CONSENT OF GUARANTORS

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