Document:

rragreement.htm

Exhibit 10.1

REGISTRATION RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS AGREEMENT dated October 3, 2011 (the “Agreement”) is entered into by and among AE Escrow Corporation, a Delaware corporation (the “Escrow Issuer”), Avis Budget Group, Inc., a Delaware corporation (the “Parent”), Morgan Stanley & Co. LLC (the “Representative”) and the other initial purchasers listed on Schedule 2 hereto (collectively, with the Representative, the
“Initial Purchasers”).

 

The Escrow Issuer, the Parent and the Initial Purchasers are parties to the Purchase Agreement dated September 21 2011 (the “Purchase Agreement”), which provides for the sale by the Escrow Issuer to the Initial Purchasers of $250,000,000 aggregate principal amount of the Escrow Issuer’s 9.75% Senior Notes due 2020 (the “Securities”), which will be assumed (the “Assumption”) by Avis Budget Car Rental, LLC
(“ABCR”) and Avis Budget Finance, Inc. (“Avis Finance”) and guaranteed on an unsecured senior basis by each of the initial guarantors listed on Schedule 1 hereto (the “Initial Guarantors”) on the Completion Date (as defined in the Purchase Agreement).  References to the Company shall mean the Escrow Issuer before the Assumption and, collectively, ABCR and Avis Finance after the Assumption.  As an inducement to the Initial Purchasers to enter into the Purchase Agreement, the Escrow Issuer and the Parent have agreed to provide to the Initial Purchasers and their direct and indirect transferees the registration rights set forth in this
Agreement.  On or prior to the Completion Date, Parent shall cause ABCR, Avis Finance, and each Initial Guarantor (other than the Parent) to enter into a joinder agreement to this Agreement (the “Joinder”), a form of which is attached hereto as Annex B, pursuant to which each such party will become a party to this Agreement.  Notwithstanding anything in this Agreement to the contrary, the representations, warranties and agreements of each of ABCR, Avis Finance and each Initial Guarantor (other than the representations, warranties and agreements of the Parent, which shall be effective on the date hereof) contained in this Agreement shall not become effective until the execution and delivery of the Joinder, at which time such representations, warranties and agreements shall become effective as
of the date hereof pursuant to the terms of the Joinder.  The execution and delivery of this Agreement is a condition to the closing under the Purchase Agreement.

 

In consideration of the foregoing, the parties hereto agree as follows:

 

1.  Definitions.  As used in this Agreement, the following terms shall have the following meanings:

 

“Additional Guarantor” shall mean any subsidiary of the Company that executes a Guarantee under the Indenture after the date of the Joinder.

 

“Business Day” shall mean any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to remain closed.

 

“Closing Date” shall mean October 3, 2011.

 

“Company” shall mean prior to the Assumption, the Escrow Issuer, and after the Assumption, collectively, ABCR and Avis Finance, and shall also include the Company’s successors.

 

  

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“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.

 

“Exchange Dates” shall have the meaning set forth in Section 2(a)(ii) hereof.

 

“Exchange Offer” shall mean the exchange offer by the Company and the Guarantors of Exchange Securities for Registrable Securities pursuant to Section 2(a) hereof.

 

“Exchange Offer Registration” shall mean a registration under the Securities Act effected pursuant to Section 2(a) hereof.

 

“Exchange Offer Registration Statement” shall mean an exchange offer registration statement on Form S-4 (or, if applicable, on another appropriate form) and all amendments and supplements to such registration statement, in each case including the Prospectus contained therein or deemed a part thereof, all exhibits thereto and any document incorporated by reference therein.

 

“Exchange Securities” shall mean senior notes issued by the Company and guaranteed by the Guarantors under the Indenture containing terms identical to the Securities (except that the Exchange Securities will not be subject to restrictions on transfer or to any increase in annual interest rate for failure to comply with this Agreement) and to be offered to Holders of Securities in exchange for Securities pursuant to the Exchange Offer.

 

“Final Registration Date” shall have the meaning set forth in Section 2(d) hereof.

 

“Free Writing Prospectus” means each free writing prospectus (as defined in Rule 405 under the Securities Act) prepared by or on behalf of the Company or used or referred to by the Company in connection with the sale of the Securities.

 

“Guarantees” shall mean the guarantees of the Securities and Exchange Securities by the Guarantors under the Indenture.

 

“Guarantors” shall mean prior to the execution and delivery of the Joinder, the Parent, and after the execution and delivery of the Joinder, the Initial Guarantors and shall also include any Guarantor’s successors and any Additional Guarantors.

 

“Holders” shall mean the Initial Purchasers, for so long as they own any Registrable Securities, and each of their successors, assigns and direct and indirect transferees who become owners of Registrable Securities under the Indenture; provided that for purposes of Sections 4 and 5 of this Agreement, the term “Holders” shall include Participating Broker-Dealers.

 

“Indemnified Person” shall have the meaning set forth in Section 5(c) hereof.

 

“Indemnifying Person” shall have the meaning set forth in Section 5(c) hereof.

 

“Indenture” shall mean the Indenture relating to the Securities dated as of October 3, 2011 between the Escrow Issuer and The Bank of Nova Scotia Trust Company of New York, as Trustee, and as the same may be amended or supplemented from time to time in accordance with the terms thereof.

 

  

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“Initial Purchasers” shall have the meaning set forth in the preamble.

 

“Inspector” shall have the meaning set forth in Section 3(a)(xiii) hereof.

 

“Issuer Information” shall have the meaning set forth in Section 5(a) hereof.

 

“Majority Holders” shall mean the Holders of a majority of the aggregate principal amount of the outstanding Registrable Securities; provided that whenever the consent or approval of Holders of a specified percentage of Registrable Securities is required hereunder, any Registrable Securities owned directly or indirectly by the Company or any of its affiliates shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage or amount; and provided, further, that if the Company shall issue any additional Securities under the Indenture prior to consummation of the Exchange Offer or, if
applicable, the effectiveness of any Shelf Registration Statement, such additional Securities and the Registrable Securities to which this Agreement relates shall be treated together as one class for purposes of determining whether the consent or approval of Holders of a specified percentage of Registrable Securities has been obtained.

 

“Participating Broker-Dealers” shall have the meaning set forth in Section 4(a) hereof.

 

“Person” shall mean an individual, partnership, limited liability company, corporation, trust or unincorporated organization, or a government or agency or political subdivision thereof.

 

“Prospectus” shall mean the prospectus included in a Registration Statement, including any preliminary prospectus, and any such prospectus as amended or supplemented by any prospectus supplement, including a prospectus supplement with respect to the terms of the offering of any portion of the Registrable Securities covered by a Shelf Registration Statement, and by all other amendments and supplements to such prospectus, and in each case including any document incorporated by reference therein.

 

“Purchase Agreement” shall have the meaning set forth in the preamble.

 

“Registrable Securities” shall mean the Securities; provided that the Securities shall cease to be Registrable Securities when (i) a Registration Statement with respect to such Securities has become effective under the Securities Act and such Securities have been exchanged or disposed of pursuant to such Registration Statement, (ii) such Securities become eligible to be sold pursuant to Rule 144 under the Securities Act by a Person that is not an “affiliate” (within the meaning of Rule 405 under the Securities Act) of the Company or any Guarantor, (iii) such Securities are sold under circumstances in which any legend borne by
such Securities relating to restrictions on transferability thereof, under the Securities Act or otherwise, is removed by the Company or (iv) such Securities cease to be outstanding.

 

“Registration Expenses” shall mean any and all expenses incident to performance of or compliance by the Company and the Guarantors with this Agreement, including without limitation: (i) all SEC, stock exchange or Financial Industry Regulatory Authority, Inc. registration and filing fees, (ii) all fees and expenses incurred in connection with compliance with state securities or blue sky laws (including reasonable fees and disbursements of not more than one counsel for any Underwriters or Holders (whose counsel shall be selected by the Holders of a majority in aggregate principal amount of Registrable Securities to be registered in the
applicable Registration Statement) in connection with blue sky qualification of any Exchange Securities or Registrable Securities), (iii) all expenses of any Persons in preparing or assisting in preparing, word processing, printing and distributing any Registration Statement, any Prospectus and any amendments or supplements thereto, any underwriting agreements, securities sales agreements or other similar agreements and any other documents relating to the performance of and compliance with this Agreement, (iv) all rating agency fees, (v) all fees and disbursements relating to the qualification of the Indenture under applicable securities laws, (vi) the 

 

  

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fees and disbursements of the Trustee and its counsel, (vii) the fees and disbursements of counsel for the Company and the Guarantors and, in the case of a Shelf Registration Statement, the fees and disbursements of one counsel for the Holders (which counsel shall be selected by the Majority Holders and which counsel may also be counsel for the Initial Purchasers), and (viii) the fees and disbursements of the independent public accountants of the Company and the Guarantors and Avis Europe plc and its subsidiaries, including the expenses of any special audits or “comfort” letters required by or incident to the performance of and compliance with this Agreement, but excluding any and all fees and expenses of advisors or counsel to the Underwriters (other than fees and expenses set forth in clause (ii)
above) or the Holders and underwriting discounts and commissions, brokerage commissions and transfer taxes, if any, relating to the sale or disposition of Registrable Securities by a Holder pursuant to any Registration Statement.

 

“Registration Statement” shall mean any registration statement of the Company and the Guarantors that covers any of the Exchange Securities or Registrable Securities pursuant to the provisions of this Agreement and all amendments and supplements to any such registration statement, including post-effective amendments, in each case including the Prospectus contained therein or deemed a part thereof, all exhibits thereto and any document incorporated by reference therein.

 

“Representative” shall have the meaning set forth in the preamble.

 

“SEC” shall mean the United States Securities and Exchange Commission.

 

“Securities” shall have the meaning set forth in the preamble.

 

“Securities Act” shall mean the Securities Act of 1933, as amended from time to time.

 

“Shelf Additional Interest Date” shall have the meaning set forth in Section 2(d) hereof.

 

“Shelf Effectiveness Period” shall have the meaning set forth in Section 2(b) hereof.

 

“Shelf Registration” shall mean a registration effected pursuant to Section 2(b) hereof.

 

“Shelf Registration Statement” shall mean a “shelf” registration statement of the Company and the Guarantors that covers all or a portion of the Registrable Securities (but no other securities unless approved by a majority of the Holders whose Registrable Securities are to be covered by such Shelf Registration Statement) on an appropriate form under Rule 415 under the Securities Act, or any similar rule that may be adopted by the SEC, and all amendments and supplements to such registration statement, including post-effective amendments, in each case including the Prospectus contained therein or deemed a part thereof, all
exhibits thereto and any document incorporated by reference therein.

 

  

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“Shelf Request” shall have the meaning set forth in Section 2(b) hereof.

 

“Staff” shall mean the staff of the SEC.

 

“Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended from time to time.

 

“Trustee” shall mean the trustee with respect to the Securities under the Indenture.

 

“Underwriter” shall have the meaning set forth in Section 3(e) hereof.

 

“Underwritten Offering” shall mean an offering in which Registrable Securities are sold to an Underwriter for reoffering to the public.

 

2.  Registration Under the Securities Act.(a)  To the extent not prohibited by any applicable law or applicable interpretations of the Staff, the Company and the Guarantors shall use their reasonable best efforts to (i) cause to be filed with the SEC an Exchange
Offer Registration Statement covering an offer to the Holders to exchange all the Registrable Securities for Exchange Securities and (ii) have such Registration Statement remain effective until 180 days after the last Exchange Date for use by one or more Participating Broker-Dealers.  The Company and the Guarantors shall commence the Exchange Offer promptly after the Exchange Offer Registration Statement is declared effective by the SEC and use their reasonable best efforts to complete the Exchange Offer not later than 45 days after such effective date.

 

The Company and the Guarantors shall commence the Exchange Offer by mailing the related Prospectus, appropriate letters of transmittal and other accompanying documents to each Holder stating, in addition to such other disclosures as are required by applicable law, substantially the following:

 

(i) that the Exchange Offer is being made pursuant to this Agreement and that all Registrable Securities validly tendered and not properly withdrawn will be accepted for exchange;

 

(ii) the dates of acceptance for exchange (which shall be a period of at least 20 Business Days from the date such notice is mailed) (the “Exchange Dates”);

 

(iii) that any Registrable Security not tendered will remain outstanding and continue to accrue interest but will not retain any rights under this Agreement, except as otherwise specified herein;

 

(iv) that any Holder electing to have a Registrable Security exchanged pursuant to the Exchange Offer will be required to (A) surrender such Registrable Security, together with the appropriate letters of transmittal, to the institution and at the address (located in the Borough of Manhattan, The City of New York) and in the manner specified in the notice, or (B) effect such exchange otherwise in compliance with the applicable procedures of the depositary for such Registrable Security, in each case prior to the close of business on the last Exchange Date; and

 

  

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(v) that any Holder will be entitled to withdraw its election, not later than the close of business on the last Exchange Date, by (A) sending to the institution and at the address (located in the Borough of Manhattan, The City of New York) specified in the notice, a telegram, telex, facsimile transmission or letter setting forth the name of such Holder, the principal amount of Registrable Securities delivered for exchange and a statement that such Holder is withdrawing its election to have such Securities exchanged or (B) effecting such withdrawal in compliance with the applicable procedures
of the depositary for the Registrable Securities.

 

As a condition to participating in the Exchange Offer, each Holder will be required to represent to the Company and the Guarantors prior to the consummation of the Exchange Offer (which representation may be contained in the letter of transmittal contemplated by the Exchange Offer Registration Statement) that (i) any Exchange Securities to be received by it will be acquired in the ordinary course of its business, (ii) at the time of the commencement of the Exchange Offer it is not engaged in, and does not intend to engage in, and has no arrangement or understanding with any Person to participate in the distribution (within the meaning of the Securities Act) of the Exchange Securities in violation of the provisions
of the Securities Act, (iii) it is not an “affiliate” (within the meaning of Rule 405 under the Securities Act) of the Company or any Guarantor and (iv) if such Holder is a broker-dealer that will receive Exchange Securities for its own account in exchange for Registrable Securities that were acquired as a result of market-making or other trading activities, then such Holder will deliver a Prospectus (or, to the extent permitted by law, make available a Prospectus to purchasers) in connection with any resale of such Exchange Securities.

 

As soon as practicable after the last Exchange Date, the Company and the Guarantors shall:

 

(i) accept for exchange Registrable Securities or portions thereof validly tendered and not properly withdrawn pursuant to the Exchange Offer; and

 

(ii) deliver, or cause to be delivered, to the Trustee for cancellation all Registrable Securities or portions thereof so accepted for exchange by the Company and issue, and cause the Trustee to promptly authenticate and deliver to each Holder, Exchange Securities equal in principal amount to the principal amount of the Registrable Securities validly tendered by such Holder and accepted for exchange pursuant to the Exchange Offer.

 

The Company and the Guarantors shall use their reasonable best efforts to complete the Exchange Offer as provided above and shall comply with the applicable requirements of the Securities Act, the Exchange Act and other applicable laws and regulations in connection with the Exchange Offer.  The Exchange Offer shall not be subject to any conditions, other than that the Exchange Offer does not violate any applicable law or applicable interpretations of the Staff.

 

  

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(b) In the event that (i) the Company and the Guarantors determine that the Exchange Offer Registration provided for in Section 2(a) above is not available or may not be completed as soon as practicable after the last Exchange Date because it would violate any applicable law or applicable interpretations of the Staff, (ii) the Exchange Offer is not for any other reason completed by the 450th day after the issuance of the Securities (the “Final
Registration Date”) or (iii) upon receipt of a written request (a “Shelf Request”) from any Initial Purchaser representing that it holds Registrable Securities that are or were ineligible to be exchanged in the Exchange Offer, the Company and the Guarantors shall use their reasonable best efforts to cause to be filed as soon as practicable after such determination, date or Shelf Request, as the case may be, a Shelf Registration Statement providing for the sale of all the Registrable Securities by the Holders thereof and to have such Shelf Registration Statement become effective.

 

In the event that the Company and the Guarantors are required to file a Shelf Registration Statement pursuant to clause (iii) of the preceding sentence, the Company and the Guarantors shall use their reasonable best efforts to file and have become effective both an Exchange Offer Registration Statement pursuant to Section 2(a) with respect to all Registrable Securities and a Shelf Registration Statement (which may be a combined Registration Statement with the Exchange Offer Registration Statement) with respect to offers and sales of Registrable Securities held by the Initial Purchasers after completion of the Exchange Offer.

 

The Company and the Guarantors agree to use their reasonable best efforts to keep the Shelf Registration Statement continuously effective (i) until the expiration of the time period referred to in Rule 144(b)(i) under the Securities Act or (ii) for such shorter period that will terminate when all the Registrable Securities covered by the Shelf Registration Statement (x) have been sold pursuant to the Shelf Registration Statement or (y) cease to be outstanding (the “Shelf Effectiveness Period”).  The Company and the Guarantors further agree to supplement or amend the Shelf Registration Statement and the related Prospectus if
required by the rules, regulations or instructions applicable to the registration form used by the Company for such Shelf Registration Statement or by the Securities Act or by any other rules and regulations thereunder or if reasonably requested by a Holder of Registrable Securities with respect to information relating to such Holder, and to use their reasonable best efforts to cause any such amendment to become effective, if required, and such Shelf Registration Statement and Prospectus to become usable as soon as thereafter practicable.  The Company and the Guarantors agree to furnish to the Holders of Registrable Securities copies of any such supplement or amendment promptly after its being used or filed with the SEC.

 

(c) The Company and the Guarantors shall pay all Registration Expenses in connection with any registration pursuant to Section 2(a) or Section 2(b) hereof.  Each Holder shall pay all underwriting discounts and commissions, brokerage commissions and transfer taxes, if any, relating to the sale or disposition of such Holder’s Registrable Securities pursuant to the Shelf Registration Statement.

 

(d) An Exchange Offer Registration Statement pursuant to Section 2(a) hereof will not be deemed to have become effective unless it has been declared effective by the SEC.  A Shelf Registration Statement pursuant to Section 2(b) hereof will not be deemed to have become effective unless it has been declared effective by the SEC or is automatically effective upon filing with the SEC as provided by Rule 462 under the Securities Act.

 

  

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In the event that either the Exchange Offer is not completed or the Shelf Registration Statement, if required pursuant to Section 2(b)(i) or 2(b)(ii) hereof, has not become effective on or prior to the Final Registration Date, the interest rate on the Registrable Securities will be increased by (i) 0.25% per annum for the first 90-day period immediately following the Final Registration Date and (ii) an additional 0.25% per annum with respect to each subsequent 90-day period, in each case until the Exchange Offer is completed or the Shelf Registration Statement, if required hereby, becomes effective or the Securities become freely tradable under the Securities Act, up to a maximum total increase of 0.50% per
annum.  In the event that the Company receives a Shelf Request pursuant to Section 2(b)(iii), and the Shelf Registration Statement required to be filed thereby has not become effective by the later of (x) the Final Registration Date or (y) 90 days after delivery of such Shelf Request (such later date, the “Shelf Additional Interest Date”), then the interest rate on the Registrable Securities will be increased by (i) 0.25% per annum for the first 90-day period payable commencing from one day after the Shelf Additional Interest Date and (ii) an additional 0.25% per annum with respect to each subsequent 90-day period, in each case until the Shelf Registration Statement becomes effective or the Securities become freely tradable under the Securities Act, up to a maximum total increase of 0.50% per
annum.

 

If the Shelf Registration Statement, if required hereby, has become effective and thereafter either ceases to be effective or the Prospectus contained therein ceases to be usable, in each case whether or not permitted by this Agreement, at any time during the Shelf Effectiveness Period, and such failure to remain effective or usable exists for more than 75 days (whether or not consecutive) in any 12-month period, then the interest rate on the Registrable Securities will be increased commencing on the 75th day in such 12-month period by (i) 0.25% per annum for the first 90-day period immediately following such
75th day, and (ii) an additional 0.25% per annum with respect to each subsequent 90-day period, up to a maximum total increase of 0.50% per annum, and ending on such date that the Shelf Registration Statement has again become effective or the Prospectus again becomes usable.

 

(e) Notwithstanding anything to the contrary contained herein, the increased interest rate described in Section 2(d) above is the sole and exclusive remedy available to Holders due to a registration default, so long as the Company and the Guarantors are acting in good faith hereunder, including, without limitation, with respect to satisfying their obligations.

 

(f) The Company represents, warrants and covenants that, unless it obtains the prior consent of counsel for the Majority Holders or the consent of the managing underwriter(s) in connection with any Underwritten Offering of Registrable Securities, it (including its agents and representatives) will not prepare, make, use, authorize, approve or refer to any “free writing prospectus” (as defined in Rule 405 under the Securities Act) in connection with the Securities or the Exchange Securities, other than any communication pursuant to Rule 134 under the Securities Act or any document
constituting an offer to sell or solicitation of an offer to buy the Securities or the Exchange Securities that falls within the exception from the definition of prospectus in Section 2(a)(10)(a) of the Securities Act.

 

  

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3.  Registration Procedures.  (a)  In connection with their obligations pursuant to Section 2(a) and Section 2(b) hereof, the Company and the Guarantors shall as soon as practicable (unless otherwise stated below):

 

(i) prepare and file with the SEC a Registration Statement on the appropriate form under the Securities Act, which form (x) shall be selected by the Company and the Guarantors, (y) shall, in the case of a Shelf Registration, be available for the sale of the Registrable Securities by the Holders thereof and (z) shall comply as to form in all material respects with the requirements of the applicable form and include all financial statements required by the SEC to be filed therewith; and use their reasonable best efforts to cause such Registration Statement to become effective and remain
effective for the applicable period in accordance with Section 2 hereof;

 

(ii) prepare and file with the SEC such amendments and post-effective amendments to each Registration Statement as may be necessary to keep such Registration Statement effective for the applicable period in accordance with Section 2 hereof and cause each Prospectus to be supplemented by any required prospectus supplement and, as so supplemented, to be filed pursuant to Rule 424 under the Securities Act; and keep each Prospectus current during the period described in Section 4(3) of and Rule 174 under the Securities Act that is applicable to transactions by brokers or dealers with respect to
the Registrable Securities or Exchange Securities;

 

(iii) in the case of a Shelf Registration, upon written request, furnish to each Holder of Registrable Securities, to counsel for the Initial Purchasers, to counsel for all such Holders and to each Underwriter of an Underwritten Offering of Registrable Securities, if any, without charge, as many copies of each Prospectus or preliminary prospectus, and any amendment or supplement thereto, as such Holder, counsel or Underwriter may reasonably request in writing in order to facilitate the sale or other disposition of the Registrable Securities thereunder; and the Company and the Guarantors
consent to the use of such Prospectus, preliminary prospectus and any amendment or supplement thereto in accordance with applicable law by each of the Holders of Registrable Securities and any such Underwriters in connection with the offering and sale of the Registrable Securities covered by and in the manner described in such Prospectus, preliminary prospectus or any amendment or supplement thereto in accordance with applicable law;

 

(iv) use their reasonable best efforts to register or qualify the Registrable Securities under all applicable state securities or blue sky laws of such jurisdictions as any Holder of Registrable Securities covered by a Registration Statement shall reasonably request in writing by the time the applicable Registration Statement becomes effective; cooperate with such Holders in connection with any filings required to be made with the Financial Industry Regulatory Authority, Inc.; and use their reasonable best efforts to do any and all other acts and things that may be reasonably necessary or
advisable to enable each Holder to complete the disposition in each such jurisdiction of the Registrable Securities owned by such Holder; provided that neither the Company nor any Guarantor shall be required to (1) qualify as a foreign corporation or other entity or as a dealer in securities in any such jurisdiction where it would not otherwise be required to so qualify, (2) file any general consent to service of process in any such jurisdiction, (3) subject itself to taxation in any such jurisdiction if it is not so subject, or (4) make any changes to its incorporating or organizational documents or limited liability agreement, if applicable, or any other agreement between it and its stockholders or members, if any;

 

  

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(v) notify counsel for the Initial Purchasers and, in the case of a Shelf Registration, notify each Holder of Registrable Securities and counsel for such Holders promptly and, if requested by any such Holder or counsel, confirm such advice in writing (1) when a Registration Statement has become effective, when any post-effective amendment thereto has been filed and becomes effective and when any amendment or supplement to the Prospectus has been filed, (2) of any request by the SEC or any state securities authority for amendments and supplements to a Registration Statement or Prospectus or for
additional information after the Registration Statement has become effective, (3) of the issuance by the SEC or any state securities authority of any stop order suspending the effectiveness of a Registration Statement or the initiation of any proceedings for that purpose, including the receipt by the Company of any notice of objection of the SEC to the use of a Shelf Registration Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) under the Securities Act, (4) if, between the applicable effective date of a Shelf Registration Statement and the closing of any sale of Registrable Securities covered thereby, the representations and warranties of the Company or any Guarantor contained in any underwriting agreement, securities sales agreement or other similar agreement, if any, relating to an offering of such Registrable Securities cease to be true and correct in all
material respects or if the Company or any Guarantor receives any notification with respect to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or the initiation of any proceeding for such purpose, (5) of the happening of any event during the period a Shelf Registration Statement is effective that makes any statement made in such Shelf Registration Statement or the related Prospectus untrue in any material respect or that requires the making of any changes in such Shelf Registration Statement or Prospectus in order to make the statements therein, with respect to a Prospectus, in the light of the circumstances under which such statements were made, not misleading, and (6) of any determination by the Company or any Guarantor that a post-effective amendment to a Registration Statement or any amendment or supplement to the Prospectus would be
appropriate;

 

(vi) use their reasonable best efforts to obtain the withdrawal of any order suspending the effectiveness of a Registration Statement or, in the case of a Shelf Registration, the resolution of any objection of the SEC pursuant to Rule 401(g)(2), including by promptly filing an amendment to such Shelf Registration Statement on the proper form, and provide notice promptly to each Holder of the withdrawal of any such order or such resolution;

 

(vii) in the case of a Shelf Registration, furnish to each Holder of Registrable Securities, without charge, at least one conformed copy of each Registration Statement and any post-effective amendment thereto (without any documents incorporated therein by reference or exhibits thereto, unless requested);

 

  

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(viii) in the case of a Shelf Registration, cooperate with the Holders of Registrable Securities to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold and not bearing any restrictive legends and enable such Registrable Securities to be issued in such denominations and registered in such names (consistent with the provisions of the Indenture) as such Holders may reasonably request at least three Business Days prior to the closing of any sale of Registrable Securities made by such Holders;

 

(ix) in the case of a Shelf Registration, upon the occurrence of any event contemplated by Section 3(a)(v)(5) hereof, use their reasonable best efforts to prepare and file with the SEC a supplement or post-effective amendment to such Shelf Registration Statement or the related Prospectus or any document incorporated therein by reference or file any other required document so that, as thereafter delivered (or, to the extent permitted by law, made available) to purchasers of the Registrable Securities, such Prospectus will not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and the Company shall notify the Holders of Registrable Securities to suspend use of the Prospectus as promptly as practicable after the occurrence of such an event, and such Holders hereby agree to suspend use of the Prospectus until the Company and the Guarantors have amended or supplemented the Prospectus to correct such misstatement or omission;

 

(x) a reasonable time prior to the filing of any Registration Statement, any Prospectus, any amendment to a Registration Statement or amendment or supplement to a Prospectus (other than any document that is to be incorporated by reference into a Registration Statement or a Prospectus after initial filing of a Registration Statement and doesn’t name the Holders of Registrable Securities in their capacity as such), provide copies of such document to the Initial Purchasers and their counsel (if the Initial Purchasers holds any Registrable Securities) (and, in the case of a Shelf
Registration Statement, to the Holders of Registrable Securities and their counsel) and make such of the representatives of the Company and the Guarantors as shall be reasonably requested by the Initial Purchasers or their counsel (if the Initial Purchasers holds any Registrable Securities) (and, in the case of a Shelf Registration Statement, the Holders of Registrable Securities or their counsel) available for discussion of such document; and the Company and the Guarantors shall not, at any time after initial filing of a Registration Statement, use or file any Prospectus, any amendment of or supplement to a Registration Statement or a Prospectus (other than any document that is to be incorporated by reference into a Registration Statement or a Prospectus and doesn’t name the Holders of Registrable Securities in their capacity as such), of which the Initial Purchasers and their
counsel (if the Initial Purchasers holds any Registrable Securities) (and, in the case of a Shelf Registration Statement, the Holders of Registrable Securities and their counsel) shall not have previously been advised and furnished a copy or to which the Initial Purchasers or their counsel (if the Initial Purchasers hold any Registrable Securities) (and, in the case of a Shelf Registration Statement, the Holders of Registrable Securities or their counsel) shall reasonably object within five Business Days after receipt thereof, unless the Company believes such Prospectus, amendment or supplement to a Prospectus is required by applicable law;

 

  

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(xi) obtain a CUSIP number for all Exchange Securities or Registrable Securities, as the case may be, not later than the initial effective date of a Registration Statement covering such Exchange Securities or Registrable Securities;

 

(xii) cause the Indenture to be qualified under the Trust Indenture Act in connection with the registration of the Exchange Securities or Registrable Securities, as the case may be; cooperate with the Trustee and the Holders to effect such changes to the Indenture as may be required for the Indenture to be so qualified in accordance with the terms of the Trust Indenture Act; and execute, and use their reasonable best efforts to cause the Trustee to execute, all documents as may be required to effect such changes and all other forms and documents required to be filed with the SEC to enable the
Indenture to be so qualified in a timely manner;

 

(xiii) in the case of a Shelf Registration, make available for inspection by a representative of the Holders of a majority of the outstanding aggregate principal amount of the Registrable Securities to be included in such Shelf Registration (an “Inspector”), any Underwriter participating in any disposition pursuant to such Shelf Registration Statement, any attorneys and one firm of accountants designated by such Holders and any attorneys (but not more than one counsel acting for all such Holders) and accountants
designated by such Underwriter, at reasonable times and in a reasonable manner, all pertinent financial and other records, documents and properties of the Company, the Guarantors and their subsidiaries, and cause the respective officers, directors and employees of the Company and the Guarantors to supply all information reasonably requested by any such Inspector, Underwriter, attorney or accountant to conduct reasonable investigation within the meaning of Section 11 of the Securities Act in connection with a Shelf Registration Statement; provided that the foregoing investigation and information gathering shall be coordinated on behalf of such parties by one counsel designated by and on behalf of such parties; and provided further that if any such information is identified by the Company or any Guarantor as being confidential or proprietary, each Person receiving such information shall
take such actions as are reasonably necessary to protect the confidentiality of such information to the extent such action is otherwise not inconsistent with, an impairment of or in derogation of the rights and interests of any Inspector, Holder or Underwriter);

 

(xiv) in the case of a Shelf Registration, use their reasonable best efforts to cause all Registrable Securities to be listed on any securities exchange or any automated quotation system on which similar securities issued or guaranteed by the Company or any Guarantor are then listed if requested by the Majority Holders, to the extent such Registrable Securities satisfy applicable listing requirements;

 

(xv) if reasonably requested by any Holder of Registrable Securities covered by a Shelf Registration Statement, promptly include in a Prospectus supplement or post-effective amendment such information with respect to such Holder as such Holder reasonably requests to be included therein and make all required filings of such Prospectus supplement or such post-effective amendment promptly after the Company has received notification of the matters to be so included in such filing;

 

  

12

  

(xvi) in the case of a Shelf Registration, enter into such customary agreements, including, but not limited to, an underwriting agreement which contains indemnities substantially similar to those contained in the Purchase Agreement, and use its reasonable best efforts to take all such other actions in connection therewith (including those requested by the Holders of a majority in principal amount of the Registrable Securities covered by the Shelf Registration Statement) in order to expedite or facilitate the disposition of such Registrable Securities including, but not limited to, an
Underwritten Offering and in such connection, (1) to the extent possible, make such representations and warranties to the Holders and any Underwriters of such Registrable Securities with respect to the business of the Company, the Guarantors and their subsidiaries and the Registration Statement, Prospectus and documents incorporated by reference or deemed incorporated by reference, if any, in each case, in form, substance and scope as are customarily made by issuers and guarantors to underwriters in Underwritten Offerings and confirm the same if and when required by the applicable underwriting agreement, (2) obtain opinions of counsel to the Company and the Guarantors (which counsel and opinions, in form, scope and substance, shall be reasonably satisfactory to such Underwriters and their counsel) addressed to each Underwriter of Registrable Securities, in customary form subject to
customary limitations, assumptions and exclusions and covering the matters customarily covered in opinions requested in Underwritten Offerings, (3) obtain “comfort” letters from the independent certified public accountants of the Company and the Guarantors (and, if necessary, any other certified public accountant of any subsidiary of the Company or any Guarantor, or of any business acquired by the Company or any Guarantor for which financial statements and financial data are or are required to be included in the Registration Statement) addressed to each selling Holder (to the extent permitted by applicable professional standards) and Underwriter of Registrable Securities, such letters to be in customary form and covering matters of the type customarily covered in “comfort” letters in connection with Underwritten Offerings, including but not limited to financial
information contained in any preliminary prospectus or Prospectus and (4) deliver such documents and certificates as may be reasonably requested by the Holders of a majority in principal amount of the Registrable Securities being sold or the Underwriters, and which are customarily delivered in Underwritten Offerings, to evidence the continued validity of the representations and warranties of the Company and the Guarantors made pursuant to clause (1) above and to evidence compliance with any customary conditions contained in the applicable underwriting agreement; and

 

(xvii) (a) on or prior to the Completion Date, cause ABCR, Avis Finance and each Initial Guarantor (other than the Parent) to enter into the Joinder and (b) so long as any Registrable Securities remain outstanding, cause each Additional Guarantor upon the creation or acquisition by the Company of such Additional Guarantor, to execute a counterpart to this Agreement in the form attached hereto as Annex A and to deliver such counterpart to the Initial Purchasers no later than five Business Days following the execution thereof.

 

(b) In the case of a Shelf Registration Statement, the Company may require each Holder of Registrable Securities to furnish to the Company such information regarding such Holder and the proposed disposition by such Holder of such Registrable Securities as the Company and the Guarantors may from time to time reasonably request in writing.  The Company and the Guarantors shall be entitled to refuse to include for registration the Registrable Securities held by any Holder who fails to comply with such request and provide the requested information after being given 15 Business Days notice
of such request to the extent such information is required by applicable law to be included in the Shelf Registration Statement, and such Holder shall not be entitled to additional interest pursuant to Section 2(d) above.

 

  

13

  

(c) In the case of a Shelf Registration Statement, each Holder of Registrable Securities covered in such Shelf Registration Statement agrees that, upon receipt of any notice from the Company and the Guarantors of the happening of any event of the kind described in Section 3(a)(v)(3), (5), or (6) hereof, such Holder will forthwith discontinue disposition of Registrable Securities pursuant to the Shelf Registration Statement until such Holder’s receipt of the copies of the supplemented or amended Prospectus contemplated by Section 3(a)(ix) hereof, or until it is advised in writing by the
Company that the use of the Prospectus may be resumed, and, if so directed by the Company and the Guarantors, such Holder will deliver to the Company and the Guarantors all copies in its possession, other than permanent file copies then in such Holder’s possession, of the Prospectus covering such Registrable Securities that is current at the time of receipt of such notice.

 

(d) If the Company and the Guarantors shall give any notice pursuant to Section 3(c) hereof to suspend the disposition of Registrable Securities pursuant to a Shelf Registration Statement, the Company and the Guarantors shall extend the period during which such Shelf Registration Statement shall be maintained effective pursuant to this Agreement by the number of days equal to the number of days in the period from and including the date of the giving of such notice to and including the date when the Holders of such Registrable Securities shall have received copies of the supplemented or amended
Prospectus necessary to resume such dispositions.  The Company and the Guarantors may give any such notice pursuant to Section 3(c) only twice during any 365-day period and any such suspensions shall not exceed 75 days in any 365-day period and there shall not be more than two suspensions in effect during any 365-day period.

 

(e) In the case of an Underwritten Offering, the investment bank or investment banks and manager or managers (each an “Underwriter”) that will administer the offering will be selected by the Holders of a majority of the outstanding aggregate principal amount of the Registrable Securities included in such offering, subject to the Company’s consent, which consent shall not be unreasonably withheld.  Such Holders shall be responsible for all underwriting commissions and discounts in connection
therewith.  No Holder of Registrable Securities may participate in any Underwritten Offering unless such Holder (i) agrees to sell such Holder’s Registrable Securities on the basis provided in any underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements and (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents required under the terms of such underwriting arrangements, provided that the Holders are given 15 Business Days notice of such requests.

 

(f) Notwithstanding anything contained herein, the Holders may only sell their Registrable Securities in an Underwritten Offering with the Company’s consent, which may be granted or withheld in the Company’s sole discretion.

 

 

  

14

  

 

4.  Participation of Broker-Dealers in Exchange Offer.  (a)  The Staff has taken the position that any broker-dealer that receives Exchange Securities for its own account in the Exchange Offer in exchange for Securities that were acquired by such broker-dealer as a result of market-making or other trading activities (a “Participating Broker-Dealer”) may be deemed to be an
“underwriter” within the meaning of the Securities Act and must deliver a prospectus meeting the requirements of the Securities Act in connection with any resale of such Exchange Securities.

 

The Company and the Guarantors understand that it is the Staff’s position that if the Prospectus contained in the Exchange Offer Registration Statement includes a plan of distribution containing a statement to the above effect and the means by which Participating Broker-Dealers may resell the Exchange Securities, without naming the Participating Broker-Dealers or specifying the amount of Exchange Securities owned by them, such Prospectus may be delivered by Participating Broker-Dealers (or, to the extent permitted by law, made available to purchasers) to satisfy their prospectus delivery obligation under the Securities Act in connection with resales of Exchange Securities for their own accounts, so long
as the Prospectus otherwise meets the requirements of the Securities Act.

 

(b) In light of the above, and notwithstanding the other provisions of this Agreement, the Company and the Guarantors agree to use their reasonable best efforts to amend or supplement the Prospectus contained in the Exchange Offer Registration Statement for a period of up to 180 days after the last Exchange Date (as such period may be extended pursuant to Section 3(d) of this Agreement (in the case of a Shelf Registration Statement that is combined with an Exchange Offer Registration Statement)), if requested by the Initial Purchasers or by one or more Participating Broker-Dealers, in order to
expedite or facilitate the disposition of any Exchange Securities by Participating Broker-Dealers consistent with the positions of the Staff recited in Section 4(a) above.  The Company and the Guarantors further agree that Participating Broker-Dealers shall be authorized to deliver such Prospectus (or, to the extent permitted by law, make available) during such period in connection with the resales contemplated by this Section 4.  The Participating Broker-Dealers shall not be authorized by the Company to deliver and shall not deliver such Prospectus after such period in connection with the resales contemplated by this Section 4.

 

(c) The Initial Purchasers shall have no liability to the Company, any Guarantor or any Holder with respect to any request that they may make pursuant to Section 4(b) above.

 

5.  Indemnification and Contribution.  (a)  The Company and each Guarantor, jointly and severally, agree to indemnify and hold harmless (i) each Initial Purchaser and each Holder, their respective affiliates, directors and officers and each Person, if any, who controls any Initial Purchaser or any Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any and all losses, claims, damages and
liabilities (including, without limitation, legal fees and other expenses incurred in connection with any suit, action or proceeding or any claim asserted, as such fees and expenses are incurred), joint or several, that arise out of, or are based upon, (1) any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement or any omission or alleged omission to state therein a material fact required to be stated therein or necessary in order to make the statements therein not misleading, or (2) any untrue statement or alleged untrue statement of a material fact contained in any Prospectus, any Free Writing Prospectus used in violation of this Agreement or any “issuer information” (“Issuer Information”) filed or required to be filed pursuant to Rule 433(d)
under the Securities Act, or any omission or alleged omission to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case except insofar as such losses, claims, damages or liabilities arise out of, or are 

 

  

15

  

based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with any information relating to any Initial Purchaser or information relating to any Holder furnished to the Company in writing through the Representative or any selling Holder respectively expressly for use therein.  In connection with any Underwritten Offering permitted by Section 3, the Company and the Guarantors, jointly and severally, will also indemnify the Underwriters, if any, selling brokers, dealers and similar securities industry professionals participating in the distribution, their respective affiliates and each Person who controls such Persons(within the meaning of the Securities Act and the Exchange Act) to the same extent as provided above with respect to the
indemnification of the Holders, if requested in connection with any Registration Statement, any Prospectus, any Free Writing Prospectus or any Issuer Information.)

 

(b) Each Holder agrees, severally and not jointly, to indemnify and hold harmless the Company, the Guarantors, the Initial Purchasers and the other selling Holders, the directors of the Company and the Guarantors, each officer of the Company and the Guarantors who signed the Registration Statement and each Person, if any, who controls the Company, the Guarantors, any Initial Purchaser and any other selling Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act to the same extent as the indemnity set forth in paragraph (a) above, but only with respect to
any losses, claims, damages or liabilities that arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with any information relating to such Holder furnished to the Company in writing by or on behalf of such Holder expressly for use in any Registration Statement and any Prospectus.

 

(c) If any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be brought or asserted against any Person in respect of which indemnification may be sought pursuant to either paragraph (a) or (b) above, such Person (the “Indemnified Person”) shall promptly notify the Person against whom such indemnification may be sought (the “Indemnifying Person”) in writing; provided that the failure to
notify the Indemnifying Person shall not relieve it from any liability that it may have under paragraph (a) or (b) above except to the extent that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and provided, further, that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have to an Indemnified Person otherwise than under paragraph (a) or (b) above.  If any such proceeding shall be brought or asserted against an Indemnified Person and it shall have notified the Indemnifying Person thereof, the Indemnifying Person shall retain counsel reasonably satisfactory to the Indemnified Person (who shall not, without the consent of the Indemnified Person, be counsel to the Indemnifying Person) to represent the Indemnified Person and any others entitled to indemnification pursuant
to this Section 5 that the Indemnifying Person may designate in such proceeding and shall pay the fees and expenses of such proceeding and shall pay the fees and expenses of such counsel related to such proceeding, as incurred.  In any such proceeding, any Indemnified Person shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless (i) the Indemnifying Person and the Indemnified Person shall have mutually agreed to the contrary; (ii) the Indemnifying Person has failed within a reasonable time to retain counsel reasonably satisfactory to the Indemnified Person; (iii) the Indemnified Person shall have reasonably concluded that there may be legal defenses available to it that are different from or in addition to those available to the Indemnifying Person; or (iv) the named parties in any
such proceeding (including any impleaded parties) include both the Indemnifying Person and the Indemnified Person and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them.  It is understood and agreed that the Indemnifying Person shall not, in connection with any proceeding or related proceeding in the same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to any local counsel) for all Indemnified Persons, and that all such fees and expenses shall be reimbursed as they are incurred.  Any such separate firm (x) for any Initial Purchaser, its affiliates, directors and officers and any control Persons of such Initial Purchaser shall be designated in writing by the Representative, (y) for any Holder, its directors and officers and any control
Persons of such Holder shall be designated in 

 

  

16

  

writing by the Majority Holders and (z) in all other cases shall be designated in writing by the Company.  The Indemnifying Person shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the Indemnifying Person agrees to indemnify each Indemnified Person from and against any loss or liability by reason of such settlement or judgment.  Notwithstanding the foregoing sentence, if at any time an Indemnified Person shall have requested that an Indemnifying Person reimburse the Indemnified Person for fees and expenses of counsel as contemplated by this paragraph, the Indemnifying Person shall
be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by the Indemnifying Person of such request; (ii) the Indemnifying Person shall not have reimbursed the Indemnified Person in accordance with such request prior to the date of such settlement and (iii) the Indemnified Person shall have given at least 30 days prior written notice of its intention to settle.  No Indemnifying Person shall, without the written consent of the Indemnified Person, effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been a party and indemnification could have been sought hereunder by such Indemnified Person, unless such settlement (A) includes an unconditional release of such Indemnified Person, in form and substance reasonably
satisfactory to such Indemnified Person, from all liability on claims that are the subject matter of such proceeding and (B) does not include any statement as to or any admission of fault, culpability or a failure to act by or on behalf of any Indemnified Person.

 

(d) If the indemnification provided for in paragraphs (a) and (b) above is unavailable to or insufficient to hold harmless an Indemnified Person in respect of any losses, claims, damages or liabilities referred to therein, then each Indemnifying Person under such paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by such Indemnified Person as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Guarantors from the
offering of the Securities and the Exchange Securities, on the one hand, and by the Holders from receiving Securities or Exchange Securities registered under the Securities Act, on the other hand, or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) but also the relative fault of the Company and the Guarantors on the one hand and the Holders  on the other in connection with the statements or omissions that resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations.  The relative fault of the Company and the Guarantors on the one hand and the Holders on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to information supplied by the Company and the Guarantors on the one hand or by the Holders on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.

 

  

17

  

(e) The Company, the Guarantors and the Holders agree that it would not be just and equitable if contribution pursuant to this Section 5 were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in paragraph (d) above.  The amount paid or payable by an Indemnified Person as a result of the losses, claims, damages and liabilities referred to in paragraph (d) above shall be deemed to include, subject to the limitations set forth
above, any legal or other expenses reasonably incurred by such Indemnified Person in connection with investigating, preparing to defend, or defending any such action or claim.  Notwithstanding the provisions of this Section 5, in no event shall a Holder be required to contribute any amount in excess of the amount by which the total price at which the Securities or Exchange Securities sold by such Holder exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.  No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.  The Holders’ obligations to contribute pursuant to this Section 5
are several in proportion to the respective principal amount of the Registrable Securities held by each Holder and not joint.

 

(f) The remedies provided for in this Section 5 are not exclusive and shall not limit any rights or remedies that may otherwise be available to any Indemnified Person at law or in equity.

 

(g) The indemnity and contribution provisions contained in this Section 5 shall remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of the Initial Purchasers or any Holder or any Person controlling any Initial Purchaser or any Holder, or by or on behalf of the Company or the Guarantors or the officers or directors of or any Person controlling the Company or the Guarantors, (iii) acceptance of any of the Exchange Securities and (iv) any sale of Registrable Securities pursuant to a Shelf Registration
Statement.

 

6.  General.(a) No Inconsistent Agreements.  The Company and the
Guarantors represent, warrant and agree that (i) the rights granted to the Holders hereunder do not in any way conflict with and are not inconsistent with the rights granted to the holders of any other outstanding securities issued or guaranteed by the Company or any Guarantor under any other agreement and (ii) neither the Company nor any Guarantor has entered into, or on or after the date of this Agreement will enter into, any agreement that is inconsistent with the rights granted to the Holders of Registrable Securities in this Agreement or otherwise conflicts with the provisions hereof.

 

  

18

  

(b) Amendments and Waivers.  The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given unless the Company and the Guarantors have obtained the written consent of Holders of at least a majority in aggregate principal amount of the outstanding Registrable Securities affected by such amendment, modification, supplement, waiver or consent ; provided that no amendment,
modification, supplement, waiver or consent to any departure from the provisions of Section 5 hereof shall be effective as against any Holder of Registrable Securities unless consented to in writing by such Holder.  Any amendments, modifications, supplements, waivers or consents pursuant to this Section 6(b) shall be by a writing executed by each of the parties hereto.

 

(c) Notices.  All notices and other communications provided for or permitted hereunder shall be made in writing by hand-delivery, registered first-class mail, telex, telecopier, or any courier guaranteeing overnight delivery (i) if to a Holder, at the most current address given by such Holder to the Company by means of a notice given in accordance with the provisions of this Section 6(c), which address initially is, with respect to the Initial Purchasers, the address set forth in the Purchase Agreement; (ii)
if to the Company and the Guarantors, initially at the Company’s address set forth in the Purchase Agreement and thereafter at such other address, notice of which is given in accordance with the provisions of this Section 6(c); and (iii) to such other persons at their respective addresses as provided in the Purchase Agreement and thereafter at such other address, notice of which is given in accordance with the provisions of this Section 6(c).  All such notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed; when answered back, if telexed; when receipt is acknowledged, if telecopied; and on the next Business Day if timely delivered to an air courier guaranteeing overnight delivery.  Copies of all such notices,
demands or other communications shall be concurrently delivered by the Person giving the same to the Trustee, at the address specified in the Indenture.

 

(d) Successors and Assigns.  This Agreement shall inure to the benefit of and be binding upon the successors, assigns and transferees of each of the parties, including, without limitation and without the need for an express assignment, subsequent Holders; provided that nothing herein shall be deemed to permit any assignment, transfer or other disposition of Registrable Securities in violation of the terms of the Purchase Agreement or the Indenture.  If any transferee of any Holder shall acquire
Registrable Securities in any manner, whether by operation of law or otherwise, such Registrable Securities shall be held subject to all the terms of this Agreement, and by taking and holding such Registrable Securities such Person shall be conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of this Agreement and such Person shall be entitled to receive the benefits hereof.  The Initial Purchasers (in their capacity as Initial Purchasers) shall have no liability or obligation to the Company or the Guarantors with respect to any failure by a Holder to comply with, or any breach by any Holder of, any of the obligations of such Holder under this Agreement.

 

(e) Third Party Beneficiaries.  Each Holder shall be a third party beneficiary to the agreements made hereunder between the Company and the Guarantors, on the one hand, and the Initial Purchasers, on the other hand, and shall have the right to enforce such agreements directly to the extent it deems such enforcement necessary or advisable to protect its rights or the rights of other Holders hereunder.

 

  

19

  

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

 

(g) Headings.  The headings in this Agreement are for convenience of reference only, are not a part of this Agreement and shall not limit or otherwise affect the meaning hereof.

 

(h) Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York.

 

(i) Entire Agreement; Severability.  This Agreement contains the entire agreement between the parties relating to the subject matter hereof and supersedes all oral statements and prior writings with respect thereto.  If any term, provision, covenant or restriction contained in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable or against public policy, the remainder of the terms, provisions, covenants and restrictions contained herein shall remain in
full force and effect and shall in no way be affected, impaired or invalidated.  The Company, the Guarantors and the Initial Purchasers shall endeavor in good faith negotiations to replace the invalid, void or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, void or unenforceable provisions.

 

  

20

  

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

 

 

AE ESCROW CORPORATION

 

By:  /s/ David B. Wyshner   

	 	
Name:

	 David B. Wyshner 
	 	
Title:

	Executive Vice President and Chief Financial Officer  

  

 

AVIS BUDGET GROUP, INC.

 

By:  /s/ David B. Wyshner   

	 	
Name:

	 David B. Wyshner 
	 	
Title:

	Executive Vice President and Chief Financial Officer  

  

 

  

  

  

 

Confirmed and accepted as of the date first above written:

 

MORGAN STANLEY & CO. LLC

 

 

For itself and on behalf of the

several Initial Purchasers

 

By:  /s/ Justin Kotzin   

	 Authorized Signatory	 	 
	 	 	 

  

 

 

  

  

  

Annex A

 

Counterpart to Registration Rights Agreement

 

The undersigned hereby absolutely, unconditionally and irrevocably agrees as a Guarantor (as defined in the Registration Rights Agreement, dated as of October 3, 2011 by and among the Company, a Delaware limited liability company, the guarantors party thereto and Morgan Stanley & Co. LLC on behalf of itself and the other Initial Purchasers) to be bound by the terms and provisions of such Registration Rights Agreement.

 

IN WITNESS WHEREOF, the undersigned has executed this counterpart as of _______________.

 

 

[NAME]

 

 

By:  __________________________

	 	
Name:

	  
	 	
Title:

	  

 

  

  

  

Annex B

Form of Joinder to Registration Rights Agreement

___________ __, 2011

Morgan Stanley & Co. LLC

1585 Broadway

New York, New York 10036

Ladies and Gentlemen:

Reference is made to the Registration Rights Agreement (the “Registration Rights Agreement”) dated as of October 3, 2011 by and among AE Escrow Corporation, a Delaware corporation (the “Escrow Issuer”), Avis Budget Group, Inc., a Delaware corporation, Morgan Stanley & Co. LLC (the “Representative”) and the other initial purchasers listed on Schedule 2 thereto (collectively, with the Representative, the “Initial
Purchasers”) concerning the sale by AE Escrow Corporation to the Initial Purchasers of $250 million aggregate principal amount of AE Escrow’s 9.75% Senior Notes due 2020 (the “Securities”), which will be assumed by Avis Budget Car Rental, LLC (“ABCR”) and Avis Budget Finance, Inc. (“Avis Finance”) and guaranteed on an unsecured basis by each of the Guarantors.  Capitalized terms used herein but not defined herein shall have the meanings assigned to such terms in the Registration Rights Agreement.

ABCR, Avis Finance and each of the Initial Guarantors party hereto agree that this letter agreement is being executed and delivered in connection with the issue and sale of the Securities pursuant to the Purchase Agreement.

1.           Joinder of the Successor Companies.  ABCR and Avis Finance hereby agree to become bound by the terms, conditions and other provisions of the Registration Rights Agreement with all attendant rights, duties and obligations stated therein, with the same force and effect as if originally named as the “Company” therein and as if such party executed the Registration Rights Agreement on the date thereof.

2.           Joinder of the Guarantors.  Each of the Initial Guarantors party hereto hereby agrees to become bound by the terms, conditions and other provisions of the Registration Rights Agreement with all attendant rights, duties and obligations stated therein, with the same force and effect as if such party executed the Registration Rights Agreement on the date thereof.

3.           Governing Law.  This letter agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

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

  

  

  

5.           Amendments.  No amendment or waiver of any provision of this letter agreement, nor any consent or approval to any departure therefrom, shall in any event be effective unless the same shall be in writing and signed by the parties hereto.

6.           Headings.  The headings in this letter agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

If the foregoing is in accordance with your understanding of our agreement, kindly sign and return to us a counterpart hereof, whereupon this letter agreement will become a binding agreement among ABCR, Avis Finance, the Initial Guarantors party hereto and the several Initial Purchasers in accordance with its terms.

Very truly yours,

Avis Budget Car Rental, LLC

 

By:  __________________________

	 	
Name:

	  
	 	
Title:

	  

Avis Budget Finance, Inc.

 

By:  __________________________

	 	
Name:

	  
	 	
Title:

	  

  

  

  

 

AB CAR RENTAL SERVICES, INC.

ARACS LLC

AVIS ASIA AND PACIFIC, LLC

AVIS BUDGET HOLDINGS, LLC

AVIS CAR RENTAL GROUP, LLC

AVIS CARIBBEAN, LIMITED

AVIS ENTERPRISES, INC.

AVIS GROUP HOLDINGS, LLC

AVIS INTERNATIONAL, LTD.

AVIS OPERATIONS, LLC

AVIS RENT A CAR SYSTEM, LLC

PF CLAIMS MANAGEMENT, LTD.

PR HOLDCO, INC.

WIZARD CO., INC.

 

By:  __________________________

	 	
Name:

	  
	 	
Title:

	  

 

 

BGI LEASING, INC.

BUDGET RENT A CAR LICENSOR, LLC

BUDGET RENT A CAR SYSTEM, INC.

BUDGET TRUCK RENTAL LLC

RUNABOUT, LLC

WIZARD SERVICES, INC.

 

By:  __________________________

	 	
Name:

	  
	 	
Title:

	  

  

  

  

Confirmed and accepted as of the date first above written:

 

MORGAN STANLEY & CO. LLC

 

 

For itself and on behalf of the

several Initial Purchasers

 

By___________________________

    Authorized Signatory

 

  

  

  

Schedule 1

 

AB Car Rental Services, Inc.

ARACS LLC

Avis Asia and Pacific, LLC

Avis Budget Group, Inc.

Avis Budget Holdings, LLC

Avis Car Rental Group, LLC

Avis Caribbean, Limited

Avis Enterprises, Inc.

Avis Group Holdings, LLC

Avis International, Ltd.

Avis Operations, LLC

Avis Rent A Car System, LLC

BGI Leasing, Inc.

Budget Rent A Car System, Inc.

Budget Rent A Car Licensor, LLC

Budget Truck Rental LLC

PF Claims Management, Ltd.

PR Holdco, Inc.

Runabout, LLC

Wizard Co., Inc.

Wizard Services, Inc.

  

  

  

Schedule 2

 

Morgan Stanley & Co. LLC

Citigroup Global Markets Inc.

Credit Agricole Securities (USA) Inc.

RBS Securities Inc.

Scotia Capital (USA) Inc.escrowagreement.htm

Exhibit 10.2

 

 

ESCROW AGREEMENT

 

 

DATED OCTOBER 3, 2011

 

 

AMONG

 

AVIS BUDGET GROUP, INC.

 

as Parent

 

and

 

AE ESCROW CORPORATION

 

as Issuer

 

and

 

MORGAN STANLEY & CO. LLC

 

as Representative of the Initial Purchasers

 

and

 

THE BANK OF NOVA SCOTIA TRUST COMPANY OF NEW YORK

 

as Escrow Agent

 

and

 

THE BANK OF NOVA SCOTIA TRUST COMPANY OF NEW YORK

 

as Trustee

 

 

 

  

  

  

CONTENTS

	  	
Clause

	  	
Page

	  
	  	
1.                Interpretation

	  	
1

	  
	  	
2.                Appointment

	  	
4

	  
	  	
3.                Establishment of Escrow Account

	  	
4

	  
	  	
4.                Escrow Amount

	  	
4

	  
	  	
5.                Operating/Release Procedure

	  	
6

	  
	  	
6.                Escrow Agent

	  	
8

	  
	  	
7.                Representations and Warranties

	  	
12

	  
	  	
8.                Replacement of Escrow Agent

	  	
14

	  
	  	
9.                Fees and Expenses

	  	
15

	  
	  	
10.              Notices

	  	
16

	  
	  	
11.              AGREEMENTS AMONG PARENT, ISSUER AND REPRESENTATIVE

	  	
18

	  
	  	
12.              General

	  	
18

	  
	  	
13.              Governing Law and Jurisdiction

	  	
19

	  
	  	
14.              Termination

	  	
20

	  

Schedules

 

	  	
1.                Form of Payment Instruction

	  	
25

	  
	  	
                   Call-back Contacts

	  	
28

	  
	  	
3.                Payment Routing Instruction re Escrow Accounts

	  	
29

	  
	  	
                   Signatories

	  	
31

	  

 

  

  

  

THIS ESCROW AGREEMENT (this “Agreement”) is dated October 3, 2011.

 

AMONG:

 

	
(1)  

	
AVIS BUDGET GROUP, INC., a company organized and existing under the laws of Delaware (“Parent”);

 

	
(2)  

	
AE ESCROW CORPORATION, a company organized and existing under the laws of Delaware (“Issuer”);

 

	
(3)  

	
MORGAN STANLEY & CO. LLC a limited liability company organized and existing under the laws of the State of Delaware whose office is 1585 Broadway, New York, New York 10036, USA (“Representative”);

 

	
(4)  

	
THE BANK OF NOVA SCOTIA TRUST COMPANY OF NEW YORK (in such capacity, the “Escrow Agent”); and

 

	
(5)  

	
THE BANK OF NOVA SCOTIA TRUST COMPANY OF NEW YORK (in such capacity, the “Trustee”).

 

WHEREAS:

 

Parent and Issuer are parties to a Purchase Agreement (the “Purchase Agreement”), dated  September 21, 2011, pursuant to which the Issuer will issue and sell to the Initial Purchasers (as defined in the Purchase Agreement) $250,000,000 aggregate principal amount of its 9.75% Senior Notes due 2020 (the “Notes”);

Issuer and the Trustee have entered into an Indenture, dated as of the date hereof (as may be amended, supplemented or otherwise modified from time to time, the “Indenture”), pursuant to which the Issuer is issuing the Notes on the date hereof;

Pursuant to the Purchase Agreement and the Indenture, the Issuer is required on the Closing Date (as defined below) to deposit the Escrow Amount (as defined below), which shall be sufficient to provide funds to pay the Special Mandatory Redemption Price (as defined in the Indenture) in the event the Notes are required to be redeemed by the Issuer pursuant to the Special Mandatory Redemption (as defined in the Indenture) requirements of the Indenture and the Notes, with the Escrow Agent to be held by the Escrow Agent for the benefit of the Trustee and the holders of the Notes (the “Holders”) in the event that the Notes are to be redeemed pursuant to
the Special Mandatory Redemption (the obligations of the Issuer to the Trustee, the Holders and the Initial Purchasers in such an event, the “Obligations”) and for release to the Issuer (or Avis Budget Car Rental, LLC as successor to the Issuer (together with the Issuer, the “Company”)) and the Initial Purchasers if the conditions to such release as provided herein are satisfied;

NOW, THEREFORE:

In consideration of the promises herein contained, and in order to induce the Holders to purchase the Notes, the Parent, the Issuer and the Escrow Agent hereby agree, for the benefit of the Trustee and for the benefit of the Holders of the Notes and the Initial Purchasers, as follows:

	
1.  

	
INTERPRETATION

 

	
1.1.  

	
Definitions

 

 

  

1

  

“Authorized Representative” means a person named in Part 1 of Schedule 2 (Authorized Representatives), as amended pursuant to Clause 5.2.

 

“Business Day” means a day on which banks, including but not limited to the Escrow Agent, are open for normal business in New York City (when used in respect of the US Escrow Account) and London, England (when used in respect of the UK Escrow Account).

 

“Call-back Contact” means a person named in Part 2 of Schedule 2 (Call-back Contacts), as amended pursuant to Clause 5.2.

 

“Designated Exchange Rate” has the meaning set forth on Schedule 4  hereto.

 

“Escrow Account” has the meaning set out in Clause 3.1.

 

“Escrow Amount” has the meaning set out in Clause 4.1.

 

“Fixed Exchange Rate” has the meaning set forth on Schedule 4 hereto.

 

“Force Majeure Event” means any event (including but not limited to an act of God, fire, epidemic, explosion, floods, earthquakes, typhoons; riot, civil commotion or unrest, insurrection terrorism, war, strikes or lockouts; nationalisation, expropriation or other related governmental actions; any law, order or regulation of a governmental, supranational or regulatory body; regulation of the banking or securities industry including changes in market rules, currency restrictions, devaluations or fluctuations; market conditions affecting the execution or settlement of transactions or the value of assets; and breakdown, failure or malfunction of any
telecommunications, computer services or systems, or other cause) beyond the control of any Party which materially restricts or prohibits the performance of the obligations of such Party contemplated by this Agreement.

 

“FX Shortfall” means, on any date, an amount in US Dollars equal to (x) USD $244,375,000 minus (y) the sum of (i) the US Dollar equivalent of the UK Sterling denominated Transfer Amount that has been deposited in the UK Escrow Account pursuant to the FX Transaction calculated using the Designated Exchange Rate on such date  plus (ii) the sum of the deposits previously made pursuant to Clause 4.2 that are then on deposit in the US Escrow
Account.

 

“FX Transaction” has the meaning  set out in Clause 4.1.

 

 “Implementation Agreement” means the Implementation Agreement, dated as of June 14, 2011, between Avis Europe plc and AE Consolidation Limited, a wholly-owned subsidiary of Avis Budget Car Rental, LLC, as the same may be amended, provided that such amendments are not, in the aggregate, as determined in good faith by Parent, materially adverse to Avis Budget Car Rental, LLC and its subsidiaries (after giving effect to the acquisition contemplated therein), taken as a whole, or to the holders of the Notes.

 

“Indenture” means the Indenture, dated October 3, 2011, between AE Escrow Corporation and The Bank of Nova Scotia Trust Company of New York, relating to the 9.75% Senior Notes due 2020, as such Indenture may be amended or supplemented.

 

“Initial Purchasers” means the several Initial Purchasers listed in Schedule 1 of the Purchase Agreement.

 

  

2

  

“Initial Purchasers’ Discount” is an aggregate amount equal to $5,625,000.

 

“Instruction” means any Payment Instruction or any other instruction, communication or direction which the Escrow Agent is entitled to rely on pursuant to and for the purposes of this Agreement.

 

“KYC Procedures” means the Escrow Agent’s procedures relating to the verification of the identity (including, if applicable, beneficial ownership) and business of its potential and existing clients.

 

“Party” means a party to this Agreement.

 

“Payment Business Day” means a day on which banks, including but not limited to the Escrow Agent, are open for normal business in New York City (when used in respect of the US Escrow Account) and London, England (when used in respect of the UK Escrow Account).

 

“Payment Instruction” has the meaning set out in Clause 5.1(a).

 

“Purchase Agreement” means the Purchase Agreement dated as of September 21, 2011 among Parent, the Issuer, and Morgan Stanley & Co. LLC, as representative of the several Initial Purchasers listed in Schedule I thereto.

 

“Resignation Date” has the meaning set out in Clause 8.4.

 

“Resignation Notice” has the meaning set out in Clause 8.2.

 

“Transfer Amount” has the meaning set out in Clause 4.1

 

“Transfer of Proceeds” has the meaning set out in Clause 4.1

 

“UK Escrow Account” has the meaning set out in Clause 3.1.

 

“US Escrow Account” has the meaning set out in Clause 3.1.

 

	
1.2.  

	
Construction

 

	
(a)  

	
the singular includes the plural (and vice versa);

 

	
(b)  

	
headings are for convenience only and do not affect the construction of this Agreement;

 

	
(c)  

	
references to Clauses and Schedules are to Clauses and Schedules to this Agreement;

 

	
(d)  

	
reference to any agreement or document includes amendments and replacements of and supplements to such agreement or document;

 

	
(e)  

	
references to any person include successors of such person and its permitted assignees and transferees;

 

	
(f)  

	
all references to an account include all replacement accounts for such account; and

 

	
(g)  

	
for the avoidance of doubt, the Schedules to this Agreement form part of this Agreement.

 

 

  

3

  

 

	
2.  

	
APPOINTMENT

 

	
2.1.  

	
Parent and Issuer hereby designate and appoint the Escrow Agent as escrow agent and the Escrow Agent accepts such designation and appointment in accordance with and limited to the terms and conditions of this Agreement. The term “Escrow Agent” shall include the Escrow Agent for the time being and all its successors further to the provisions of Clause 8.

 

	
2.2.  

	
The obligations of Parent and Issuer under this Agreement shall be joint and several, save that where only one Party is specified to have an obligation, only that Party shall have such obligation.

 

	
3.  

	
ESTABLISHMENT OF ESCROW ACCOUNTS

 

	
3.1.  

	
The Escrow Agent confirms that it has opened a US Dollar denominated escrow account, the details of which are set out in Clause 3.1(a) below, (the “US Escrow Account”) and a UK Sterling denominated escrow account, the details of which are set out in Clause 3.1(b) below (the “UK Escrow Account” and, together with the US Escrow Account, the “Escrow Accounts”) in the name of the Issuer on the terms of this Agreement:

 

	
(a)  

	
The Bank of Nova Scotia New York Agency

ABA# 026-002532

Credit/Adv.: BNST as Escrow Agent for AE Escrow Corporation

Account No.: 03398-14

SWIFT Code: NOSCUSS33

	
(b)  

	
The Bank of Nova Scotia - London

ABA# 026-002532

Credit/Adv.: BNST as Escrow Agent for AE Escrow Corporation

Account No.: AN20950000

SWIFT Code: NOSCGB22

	
3.2.  

	
The Escrow Accounts may not go into overdraft.

 

	
3.3.  

	
The Escrow Agent shall hold all money forming part of the Escrow Amount as banker (with respect to the UK Escrow Account) subject to the terms of this Agreement.

 

	
3.4.  

	
Each of Parent and Issuer undertakes to the Escrow Agent that it will provide to the Escrow Agent all documentation and other information required by the Escrow Agent from time to time in order to comply with all applicable regulations in relation to the Escrow Account forthwith upon request by the Escrow Agent.

 

	
3.5.  

	
The Escrow Accounts shall be subject to such applicable laws, and such applicable regulations of the Board of Directors of the Federal Reserve System and of any other banking or governmental authority with proper jurisdiction over the Escrow Accounts, as may now or hereafter be in effect.

 

	
4.  

	
ESCROW AMOUNT

 

	
4.1.  

	
On the date hereof (the “Closing Date”), the Issuer shall cause to be deposited with the Escrow Agent in the US Escrow Account:

 

 

  

4

  

 

	
(a)  

	
$244,375,000 representing an amount equal to the net proceeds from the offering of the Notes (the “Net Proceeds”);

 

	
(b)  

	
$5,625,000 representing the Initial Purchasers’ Discount (together with the Net Proceeds, the “Proceeds”); and

 

	
(c)  

	
$4,875,000, representing the amount of interest that would accrue on the Notes from the Closing Date to but excluding December 15, 2011 (the “Interest Deposit” and, together with the Proceeds, the “Escrow Amount”)

 

in accordance with the payment routing instruction set out in Schedule 3 (Payment Routing Instruction re Escrow Account), provided that, subject to the terms of this Agreement and upon written instruction delivered to the Escrow Agent, at least two (2) Payment Business Days prior to any transfer, from Parent and the Issuer, the Escrow Agent may transfer (the “Transfer of Proceeds”) an amount equal to the total of the Net Proceeds (such amount, the “Transfer Amount”) from the US Escrow Account to the UK Escrow Account,
including (and subject to the conditions set forth in Clause 4.2) through the entry by the Issuer into a currency swap or other exchange transaction that deposits the UK Sterling equivalent (calculated using the Fixed Exchange Rate) of the Transfer Amount into the UK Escrow Account and is settled through the release of the Transfer Amount from the U.S. Escrow Account (an “FX Transaction”), prior to the release of the Escrow Amount in accordance with Clause 5, provided further that prior to the Transfer of Proceeds  (or the release of the Transfer Amount for the settlement of an FX Transaction in the event the Transfer of Proceeds is effectuated via an FX Transaction) the Escrow Issuer and Parent shall have (x) entered into such documents, in form and
substance reasonably satisfactory to the Escrow Agent, the Trustee and the Representative, as are necessary to maintain a continuously perfected first priority security interest in the Escrow Accounts and an amount equal to the Escrow Amount (whether such amount is on deposit in the US Escrow Account or both the US Escrow Account and the UK Escrow Account) in accordance with Clause 4.4 and (y) delivered to the Trustee and the Initial Purchasers a customary opinion, in form and substance reasonably satisfactory to the Trustee and the Representative, from counsel to Parent and the Issuer to the effect that the security interest in the UK Escrow Account and any portion of the Escrow Amount on deposit in the UK Escrow Account is a perfected security interest for the benefit of the Trustee and for the ratable benefit of the Holders.

 

	
4.2.  

	
The Transfer of Proceeds may only be effectuated pursuant to a FX Transaction as described in Clause 4.1 if:

 

	
(a)  

	
The Issuer is the party, pursuant to the contract governing the FX Transaction (which contract shall be guaranteed by Parent), effectuating such currency swap or exchange transaction; and

 

	
(b)  

	
(i) On the day of the Transfer of Proceeds, the Issuer shall deposit and Parent shall cause the Issuer to deposit into the US Escrow Account, prior to or concurrently with the Transfer of Proceeds, any FX Shortfall that may exist calculated using the Designated Exchange Rate in effect at the opening of business on the day of the Transfer of Proceeds and (ii) beginning on the Business Day following the day the Transfer of Proceeds is effectuated and until the release of the Escrow Amount from the Escrow Accounts pursuant to Clause 5.1, the Issuer shall deposit and Parent shall cause the Issuer to deposit into the US Escrow Account on a daily basis, on the next subsequent Business Day, any FX Shortfall that may exist calculated
using the Designated Exchange Rate in effect at the opening of business on the date the deposit is required to be made. For the avoidance of doubt, the Issuer shall not be required to make any deposit into the US Escrow Account pursuant to this Clause 4.2(c) on a day that the FX Shortfall is an amount equal to zero or less than zero.

 

 

  

5

  

 

	
4.3.  

	
All further amounts deposited and held in the Escrow Accounts, including all FX Shortfall deposits and all interest accrued thereon and credited to the Escrow Accounts from time to time (but subject to Clause 5.7) shall be deemed to form part of the Escrow Amount; provided, that, for the avoidance of doubt, to the extent at any time the sum of the amounts in the US Escrow Account and the US Dollar equivalent of the amounts in the UK Escrow Account (calculated using the Designated Exchange Rate on such day) at such time exceed the total of the Proceeds and the Interest Deposit, neither the Holders, the Initial Purchasers nor the Trustee shall have any remedies pursuant to
Section 9 hereof with respect to such excess.

 

	
4.4.  

	
The Escrow Amount will not bear interest.

 

	
4.5.  

	
It is the intention of the parties hereto that this Escrow Agreement create a true escrow, and the Issuer have no ownership of, or rights in, the Escrow Accounts or the Escrow Amount other than the limited contractual right to receive the Escrow Amount under the circumstances specified in Clause 5.1a hereof. If, notwithstanding the intention of the parties set forth in the foregoing sentence, the Issuer is determined to have any interest in any of the Escrow Accounts or the Escrow Amount, the Issuer hereby pledges to the Trustee for its benefit and for the ratable benefit of the Holders and, solely with respect to the Initial Purchasers’ Discount (but only to the extent payable hereunder and under the Purchase Agreement),
the Initial Purchasers, and hereby grants to the Trustee for its benefit and for the ratable benefit of the Holders and the Initial Purchasers, as applicable, a continuing first priority security interest in and to all of the Issuer’s right, title and interest in the Escrow Accounts and the Escrow Amount as security for the due and punctual payment when due and punctual performance of all amounts that may be payable by the Issuer from time to time under the Indenture and the Notes (including the Special Mandatory Redemption Price (as defined in the Indenture), and any interest accruing after commencement of any bankruptcy or insolvency proceeding against the Issuer whether or not allowed in such proceeding), now or hereafter arising,.  The security interest of the Trustee shall at all times be valid, perfected and enforceable as a first priority security interest by the
Trustee against the Issuer and all third parties in accordance with the terms of this Agreement.

 

	
5.  

	
OPERATING/RELEASE PROCEDURE

 

	
5.1.  

	
Operating and release procedures of the Escrow Amount shall be as follows:

 

	
(a)  

	
Subject to Clauses 5.4 to 5.8 and 6, the Escrow Agent shall release an aggregate amount equal to the Escrow Amount from the Escrow Accounts in full for the benefit of the Issuer (or its successors) in accordance with and upon receipt of (i) a payment instruction (as described below), (ii) an officers’ certificate substantially in the form set out in Schedule 1-A (the “First Officers’ Certificate”) signed by an Authorized Representative of each of Parent and Issuer and (iii) an Officers’ Certificate substantially in the form set out in Schedule 1-B (the “Second Officers’
Certificate”) signed by an Authorized Representative of each of Parent and Issuer (together with the First Officers’ Certificate, the “Officers’ Certificates”), provided that (w) the First Officers’ Certificate shall be given to the Escrow Agent two (2) Payment Business Days before the date of release of the Escrow Amount; (x) the Second Officers’ Certificate shall be given on the date of the release of the Escrow Amount; and (y) the Escrow Agent shall only be required to release the Escrow Amount on a Payment Business Day and if the Initial Purchasers’ Discount shall be paid to the Representative on or prior to the release of the Escrow Amount pursuant to this Clause 5.1(a).  The payment instruction shall be
substantially in the form set out in Schedule 1-C (Form of Payment Instruction) (a “Payment Instruction”) signed by an Authorized Representative of each of Parent and Issuer and delivered simultaneously with the First Officers’ Certificate, directing the Escrow Agent to release the Escrow Amount in full as set forth therein, provided that if prior to the delivery of the Second Officers’ Certificate the Parent has paid, or caused to be paid, the amount of the Initial Purchasers’ Discount to the Representative as provided in the Payment Instructions from funds that are not part of the Escrow Amount and such payment has been confirmed to the Escrow Agent in writing by the Representative, the amount of the Initial Purchasers’ Discount held in
the US Escrow Account shall be paid to the Parent as soon as possible after the release of funds from the Escrow Accounts pursuant to this Clause 5.1(a). The Representative shall promptly notify the Escrow Agent in writing upon receipt of the Initial Purchasers’ Discount from or on behalf of the Issuer or Parent.

 

 

  

6

  

 

	
(b)  

	
If, (i) by 12:00 p.m. local time in the City of New York on December 13, 2011 (such date, the “Expiration Date”), the Escrow Agent shall not have received the Officers’ Certificates; or (ii) on or prior to the Expiration Date, the Issuer shall have notified the Escrow Agent in writing that the Implementation Agreement has been terminated or that the conditions to the release of the Escrow Amount will not be satisfied prior to the Expiration Date; then, in either case, the Escrow Agent shall, without the requirement of any other notice to or action by the Parent, Issuer, the Trustee or any other Person, release the Escrow Amount from the US Escrow Account
and the UK Escrow Account to the Trustee (but not in excess of the amount needed to pay the Special Mandatory Redemption Price in US Dollars) and the Escrow Agent shall convert UK Sterling on deposit in the UK Escrow Account into US Dollars (and may engage a financial institution to effect such conversion).  The Trustee shall apply the Escrow Amount in accordance with the terms of Section 417 and Section 1009 of the Indenture to pay the Special Mandatory Redemption Price.

 

If the Issuer is required to effect the Special Mandatory Redemption contemplated by Section 417 and Section 1009 of the Indenture and for any reason the Escrow Amount (including, without limitation, as a result of movements in exchange rates) is insufficient to pay the Special Mandatory Redemption Price (as defined in the Indenture) to redeem all of the outstanding Notes as provided in the Indenture, the Parent and the Issuer agree to pay to the Trustee, not later than the date of release of the Escrow Amount pursuant to the paragraph above, the amount of funds necessary to permit all outstanding Notes to be redeemed in accordance with the Special Mandatory Redemption provisions in the Indenture.

 

	
(c)  

	
The Escrow Agent may also release the Escrow Amount in accordance with a final order, judgment or decree of a court of competent jurisdiction, which order, judgment or decree is not subject to appeal, or settlement agreement between the conflicting parties as evidenced in writing. The Escrow Agent may, in addition, elect, in its sole discretion, to commence an interpleader action or seek other judicial relief or orders as it may deem, in its sole discretion, necessary,

 

	
5.2.  

	
Parent and Issuer undertake to give the Escrow Agent and the Trustee five (5) Business Days’ notice in writing in accordance with Clause 11 of any amendment to their Authorized Representatives or Call-back Contacts giving the details specified in the relevant part of Schedule 2 (Authorized Representatives and Call-back Contacts). Any amendment of the Authorized Representatives or Call-back Contacts of Parent and Issuer shall take effect upon the expiration of such five (5) Business Days’ notice (or such shorter period as agreed by the Escrow Agent in its absolute discretion).

 

 

  

7

  

 

	
5.3.  

	
Any payment by the Escrow Agent under this Agreement will be made without any deduction or withholding for or on account of any tax unless such deduction or withholding is required by applicable law, rule, regulation, or practice of any relevant government, government agency, regulatory authority, stock exchange or self-regulatory organization with which the Escrow Agent is bound and/or is accustomed to comply.

 

	
5.4.  

	
If the Escrow Agent is required by law, rule, regulation, or practice of any relevant government, government agency, regulatory authority, stock exchange or self regulatory organization with which the Escrow Agent is bound and/or is accustomed to comply to make a deduction or withholding, it will not pay an additional amount in respect of that deduction or withholding to the relevant Party.

 

	
5.5.  

	
[Reserved].

 

	
5.6.  

	
[Reserved].

 

	
5.7.  

	
Except as otherwise provided by Clause 5.1 hereof, so long as the Obligations shall remain unpaid, the Issuer will maintain the Escrow Accounts with the Escrow Agent.

 

	
5.8.  

	
Notwithstanding any term or condition to the contrary in any other agreement relating to the Escrow Accounts, no amount shall be paid or released to or for the account of, or withdrawn by or for the account of, the Parent, the Issuer or any other Person, from the Escrow Accounts, except as provided in Clause 5.1 hereof.

 

	
5.9.  

	
The U.S. Escrow Account shall be established and maintained as a securities account (as defined in Section 8-501 of the Uniform Commercial Code as in effect from time to time in the State of New York (“UCC”)) and the State of New York shall be the security intermediary’s jurisdiction for purposes of Section 8-110 of the UCC.

 

	
5.10.  

	
Notwithstanding any other provision hereof, upon the release of the Escrow Amount pursuant to Clause 5.1 hereof, the security interest of the Trustee for the benefit of the Holders of the Notes and the security interest of the Escrow Agent shall automatically terminate without any further action and the Escrow Amount shall be delivered to the recipient entitled thereto pursuant to Clause 5.1 free and clear of any and all liens, claims or encumbrances of any person, including, without limitation, the Escrow Agent, the Trustee and the Holders of the Notes.

 

	
6.  

	
ESCROW AGENT

 

	
6.1.  

	
To induce the Escrow Agent to act hereunder, it is further agreed by each of Parent and Issuer, the Representative and the Trustee that:

 

	
(a)  

	
the Escrow Agent shall not be under any duty to give the Escrow Amount held by it hereunder any greater degree of care than it gives to amounts held in trust for its general banking customers;

 

	
(b)  

	
this Agreement expressly sets forth all the duties of the Escrow Agent. The Escrow Agent shall not be bound by (and shall be deemed not to have notice of) the provisions of any other agreement entered into by or involving Parent and Issuer (including the provisions of Clause 12 below) except this Agreement (other than the provisions of Clause 12 below which shall not apply to the Escrow Agent) and any Instruction and no implied duties or obligations of the Escrow Agent shall be read into this Agreement or any Instruction as a result of any such other agreement, whether or not such agreement has been previously disclosed to the Escrow Agent;

 

 

  

8

  

 

	
(c)  

	
the Escrow Agent is under no duty to ensure that funds withdrawn from the Escrow Accounts are actually applied for the purpose for which they were withdrawn;

 

	
(d)  

	
neither the Escrow Agent nor any of its respective officers, employees or agents shall be required to make any distribution (other than of the Escrow Amount) to the extent that the Escrow Amount is insufficient and shall incur no liability whatsoever from any non-distribution in such circumstances;

 

	
(e)  

	
Each of Parent and Issuer, the Representative and the Trustee unconditionally agree to the call-back arrangement and the use of any form of telephonic or electronic monitoring or recording by the Escrow Agent according to the Escrow Agent’s standard operating procedures or as the Escrow Agent deems appropriate for security and service purposes, and that such recording may be produced as evidence in any proceedings brought in connection with this Agreement;

 

	
(f)  

	
(1)the Escrow Agent shall not be liable to any person or entity including but not limited to any shareholder of Parent for any loss, liability, claim, debts, action, damages or expenses arising out of or in connection with its performance of or its failure to perform any of its obligations under this Agreement save as are caused by its own gross negligence or willful default;

 

	
(i)  

	
the Escrow Agent shall not be responsible for any loss or damage, or failure to comply or delay in complying with any duty or obligation, under or pursuant to this Agreement arising as a direct or indirect result of any Force Majeure Event or any event if where, in the reasonable opinion of the Escrow Agent, performance of any duty or obligation under or pursuant to this Agreement would or may be illegal or would result in the Escrow Agent being in breach of any law, rule, regulation, or any decree, order or judgment of any court, or practice, request, direction, notice, announcement or similar action (whether or not having the force of law) of any relevant government, government agency, regulatory authority, stock exchange or
self-regulatory organization to which the Escrow Agent is subject;

 

	
(ii)  

	
without prejudice to the obligation of the Escrow Agent to transfer all or part of the Escrow Amount in accordance with this Agreement, in the absence of fraud, gross negligence or willful default, the liability of the Escrow Agent hereunder shall be limited to the Escrow Amount; and

 

	
(iii)  

	
notwithstanding the foregoing, under no circumstances will the Escrow Agent be liable to any Party for any indirect, incidental or consequential loss or damage (being inter alia, loss of business, goodwill, opportunity or profit) even if advised of such loss or damage;

 

	
(g)  

	
Parent and Issuer shall jointly and severally indemnify and keep the Escrow Agent (and, without limitation, its directors, officers, agents and employees) indemnified and hold each of them harmless from and against any and all losses, liabilities, claims, debts, actions, damages, fees and expenses, (including fees and disbursements of professional advisers (including lawyers)), arising out of or in connection with the Escrow Agent’s performance of its obligations under this Agreement, including as a result of the Escrow Agent’s appointment under this Agreement, save as are caused by its own fraud, gross negligence or willful default.

 

 

  

9

  

 

	
(h)  

	
Without prejudice to Clause 6.1(i), the Escrow Agent shall not be obliged to make any payment or otherwise to act on any Instruction provided to it under this Agreement if it is unable:

 

	
(i)  

	
to verify any signature pursuant to any request or Instruction against the specimen signature provided for the relevant Authorized Representative hereunder; and

 

	
(ii)  

	
to validate the authenticity of the request by telephoning a Call-back Contact who has not executed the relevant request or Instruction as an Authorized Representative of the relevant Party;

 

	
(i)  

	
the Escrow Agent shall be entitled to rely upon any order, judgment, decree, certification, demand, notice or other written instrument (including any Instruction or any requirement and/or request for information delivered by a party referred to in Clause 6.2 below) delivered to it hereunder without being required to determine the authenticity or the correctness of any fact stated therein or the validity of the service thereof.  The Escrow Agent may act in reliance upon any instrument or signature believed by it to be genuine and may assume that any person purporting to give receipt or advice or make any statement or execute any document in connection with the provisions hereof has been duly authorized to do
so.

 

	
(j)  

	
Parent and the Issuer acknowledge that the Escrow Agent is authorized to rely conclusively upon any Instructions received by any means agreed hereunder or otherwise agreed by all parties hereto. In furtherance of the foregoing:

 

	
(i)  

	
without prejudice to Clause 6.1(m), the Escrow Agent may rely and act upon an Instruction if it reasonably believes it contains sufficient information and has emanated from the Authorized Representative in which case, if it acts in good faith on such Instructions, such Instructions shall be binding on each Party (as the case may be) and the Escrow Agent shall not be liable for doing so. The Escrow Agent is not responsible for errors or omissions made by Parent or Issuer resulting from fraud or the duplication of any Instruction by Parent or Issuer;

 

	
(ii)  

	
notwithstanding any other provision hereof, the Escrow Agent shall have the right to refuse to act on any Instruction where it reasonably doubts its contents, authorization, origination or compliance with this Agreement and will promptly notify each of Parent and Issuer, the Representative and the Trustee of its decision;

 

	
(iii)  

	
if Parent and/or Issuer informs the Escrow Agent that it wishes to recall, cancel or amend an Instruction, the Escrow Agent is not obliged but will use its reasonable efforts to comply to the extent it is practicable to do so before the release or transfer of the Escrow Amount. Subject to item (ii) above, any such recall, cancellation or amendment to the Instructions acted upon by the Escrow Agent shall be binding on the party who issues such Instructions; and

 

 

  

10

  

 

	
(iv)  

	
all Instructions to the Escrow Agent shall be sent in accordance with Clause 11. Parent and Issuer expressly acknowledge that they are fully aware of and agree to accept the risks of error, security and privacy issues and fraudulent activities associated with transmitting Instructions through facsimile or any other means requiring manual intervention, except for any such risks resulting from the Escrow Agent’s fraud, gross negligence or willful default;

 

	
(k)  

	
the Escrow Agent may consult lawyers or other appropriate professional advisers over any question as to the provisions of this Agreement or its duties. The Escrow Agent shall have no liability for any action subsequently taken by it in accordance with the advice of its lawyers or other professional advisers with respect to any matter relating to this Agreement and shall not be liable for any action taken or omitted in accordance with such advice;

 

	
(l)  

	
this paragraph (1), paragraph (f), paragraph (g), paragraph (i) and paragraph (j), above, shall survive notwithstanding any termination of this Agreement or the resignation or replacement of the Escrow Agent;

 

	
(m)  

	
the Escrow Agent shall have no responsibility for the accuracy or appropriateness of the contents of any ruling (including the merits of such ruling) of arbitrators or any third party contemplated in any other document to which each of Parent and Issuer, the Representative or the Trustee are party as a means to resolve disputes and may rely without any liability upon the contents;

 

	
(n)  

	
The Escrow Agent shall be entitled to refuse to act and to retain the Escrow Amount until required to release it in accordance with Clause 5.1 or until the Escrow Agent shall have received security or an indemnity satisfactory to it sufficient to hold it harmless from and against any and all losses, liabilities, claims, debts, actions, damages, fees and expenses which it may incur by reason of so acting. The Escrow Agent may, in addition, elect, in its sole discretion, to commence an interpleader action or seek other judicial relief or orders as it may deem necessary. The reasonable costs and reasonable out-of-pocket expenses (including reasonable lawyers’ fees and expenses) incurred in connection with such proceeding shall
be paid by the Parent and Issuer;

 

	
(o)  

	
no printed or other matter in any language (including without limitation prospectuses, offering memoranda, notices, reports and promotional material) which mentions the Escrow Agent’s name or the rights, powers, or duties of the Escrow Agent shall be publicly issued by Parent, Issuer or on their behalf other than in an offering memoranda relating to the Notes unless the Escrow Agent shall first have given its express written consent thereto; and

 

	
(p)  

	
except to the extent provided otherwise under any applicable law, in the absence of assignment of the Escrow Agent’s obligations hereunder to any of its affiliates:

 

	
(i)  

	
the obligations and duties of the Escrow Agent are binding only on the Escrow Agent and are not obligations or duties of any affiliate of the Escrow Agent; and

 

 

  

11

  

 

	
(ii)  

	
the rights of Parent and Issuer with respect to the Escrow Agent extend only to such Escrow Agent and, except to the extent required under any applicable law, do not extend to any affiliate of the Escrow Agent.

 

	
6.2.  

	
The Escrow Agent will treat information relating to each Party as confidential, but (unless consent is prohibited by law) Parent and Issuer consent to the transfer and disclosure by the Escrow Agent of any information relating to each Party to and between branches, subsidiaries, representative offices, affiliates and agents of the Escrow Agent and third parties selected by any of them, wherever situated, for confidential use in connection with the provision of any service contemplated hereunder. The Escrow Agent and any branch, subsidiary, representative office, affiliate, agent or third party may transfer and disclose any such information to a third party only as is required by any court, legal process or banking, regulatory or
examining authority (whether governmental or otherwise) including any auditor of a Party.

 

	
6.3.  

	
Any statement or report provided by the Escrow Agent on a regular basis in respect of the Escrow Accounts or any transactions or transfers of the Escrow Amount shall be deemed to be correct and final upon receipt thereof by each Party unless such Party notifies the Escrow Agent in writing to the contrary within thirty (30) calendar days from the date of such statement or report.

 

	
6.4.  

	
For the purposes of the contacts between the Parties via telephone, each of Parent, Issuer, the Company, Representative, and the Trustee shall provide the list of Call-back Contacts as specified in Part 2 of Schedule 2 (the “Call-back Contacts”). Each Party referenced in this paragraph acknowledges and accepts the risks associated with any appointment of the same person(s) to act as their respective Authorized Representative and Call-back Contact. Parent and Issuer further acknowledge and agree that the Escrow Agent may rely upon the confirmations or responses of anyone purporting to be the Call-back Contact in answering the telephone call-back of such Escrow Agent and that such Party shall assume all risks and losses
(if any) resulting from such confirmations or responses.

 

	
7.  

	
REPRESENTATIONS AND WARRANTIES

 

	
7.1.  

	 

 

	
(a)  

	
Each of Parent and Issuer represent and warrant to the Escrow Agent that:

 

	
(i)  

	
it is duly incorporated and validly existing under the laws of its jurisdiction of incorporation, and is not subject to any insolvency procedure;

 

	
(ii)  

	
it has the power to enter into and perform its obligations under this Agreement which constitutes its legally binding and enforceable obligations, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or other similar laws relating to or affecting the enforcement of creditors' rights generally or by general equitable principles (whether considered in a proceeding in equity or law) relating to enforceability;

 

	
(iii)  

	
this Agreement and the underlying transaction to which it relates will not conflict in any material respect with:

 

	
(a)  

	
any applicable law or regulation or any official or judicial order or control; or

 

 

  

12

  

 

	
(b)  

	
its constitutional documents; or

 

	
(c)  

	
any material agreement to which it is a party or which is binding upon it or its assets;

 

	
(iv)  

	
neither it nor any of its assets enjoys a right of immunity from set off, proceedings or execution in respect of its obligations under this Agreement and each Instruction;

 

	
(v)  

	
all governmental and other consents and/or approvals that are required to have been obtained by it with respect to this Agreement or payments under it, have been obtained and are in full force and effect and all conditions of any such consents and/or approval have been (or as applicable will be) complied with.

 

	
(b)  

	
The Escrow Agent represents and warrants to the Issuer and Parent that

 

	
(i)  

	
it has all power and authority to act as a securities intermediary, as defined in Section 8-102 of the U.C.C.;

 

	
(ii)  

	
it has the power to enter into and perform its obligations under this Agreement which constitutes its legally binding and enforceable obligations, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or other similar laws relating to or affecting the enforcement of creditors' rights generally or by general equitable principles (whether considered in a proceeding in equity or law) relating to enforceability;

 

	
(iii)  

	
this Agreement will not conflict in any material respect with

 

	
(a)  

	
any applicable law or regulation or any official or judicial order, in each case applicable to it; or

 

	
(b)  

	
its constitutional documents; or

 

	
(c)  

	
any material agreement to which it is a party or which is binding upon it or its assets; and

 

	
(iv)  

	
there are no legal or governmental proceedings pending or, to the best of its knowledge, threatened, to which the Escrow Agent or any of its subsidiaries is a party or to which any of the properties of the Escrow Agent or any such subsidiary is subject that would materially adversely affect the power or ability of the Escrow Agent to perform its respective obligations under this Agreement.

 

	
7.2.  

	
Each of Parent and Issuer undertakes not to supply to the Escrow Agent any personal data or sensitive data, whether relating to such party, its personnel, customers or other data subjects, except to the extent that Parent and Issuer is required to provide such information necessary in order to comply with requests for information made by the Escrow Agent pursuant to its KYC Procedures. The Escrow Agent will process such information for the purpose of carrying out its KYC Procedures and will keep it secure and confidential.

 

 

  

13

  

 

	
8.  

	
REPLACEMENT OF ESCROW AGENT

 

	
8.1.  

	
Subject to Clause 8.4, each of Parent, Issuer and the Trustee, acting together, may at any time replace the Escrow Agent by giving (a) written notice in accordance with Clause 11 to such effect; and (b) details of such replacement including the account details of such replacement to the Escrow Agent. Within thirty (30) calendar days of receipt of such notice and details, the Escrow Agent shall transfer the Escrow Amount to such replacement at the account details provided in accordance with this Clause 8.1.

 

	
8.2.  

	
Subject to Clause 8.4, the Escrow Agent may at any time resign for any reason by giving written notice (a “Resignation Notice”) to such effect to each of Parent, Issuer and the Trustee. On receipt of a Resignation Notice from the Escrow Agent, each of Parent, Issuer and the Trustee shall appoint a successor escrow agent as soon as practicable and in any event within thirty (30) calendar days of the Resignation Notice by giving (a) written notice in accordance with Clause 11 to such effect; and (b) details of such replacement including the account details of such replacement to the Escrow Agent. Within thirty (30) calendar days of receipt of such notice and
details, the Escrow Agent shall transfer the Escrow Amount to such replacement at the account details provided in accordance with this Clause 8.2.

 

	
8.3.  

	
If thirty (30) calendar days after the date of deemed receipt of a Resignation Notice a successor escrow agent has not been appointed in accordance with Clause 8.2 above, the Escrow Agent may:

 

	
(a)  

	
appoint a successor escrow agent itself and transfer all of the Escrow Amount to that successor escrow agent; or

 

	
(b)  

	
petition a court of competent jurisdiction to appoint a successor escrow agent or otherwise direct the Escrow Agent in any way in relation to the Escrow Amount.

 

Upon its resignation, the Escrow Agent shall transfer the Escrow Amount to the successor escrow agent or to the court of competent jurisdiction or otherwise in accordance with the order of a court of competent jurisdiction.

	
8.4.  

	
The resignation of the Escrow Agent will take effect on the

 

 date of the transfer of the Escrow Amount to the successor escrow agent under Clause 8.1, 8.2 or 8.3, as applicable

 

 (such date being the “Resignation Date”).

 

 

	
8.5.  

	
Any costs (including any transfer or foreign exchange costs) incurred by the Escrow Agent Pursuant to this Clause 8 shall be reimbursed to the Escrow Agent by Parent and Issuer.

 

	
8.6.  

	
On transfer of the Escrow Amount in accordance with Clauses 8.1, 8.2 or 8.3 above, the Escrow Agent shall be discharged from all further obligations arising in connection with this Agreement.

 

 

  

14

  

 

	
9.  

	
REMEDIES UPON EVENT OF DEFAULT.

 

	
9.1.  

	
If any Event of Default under Sections 601(i), 601(ii) or 601(viii) of the Indenture (any such Event of Default being referred to in this Agreement as an “Event of Default”), in each case, not cured within 30 days after notice thereof to the Issuer shall have occurred and be continuing:

 

	
(a)  

	
The Trustee, Escrow Agent and the Holders shall have, in addition to all other rights given by law or by this Agreement or the Indenture, all of the rights and remedies with respect to the Escrow Amount and Escrow Accounts (collectively, the “Collateral”) of a secured party under the UCC. In addition, with respect to any Collateral that shall then be in or shall thereafter come into the possession or custody of the Escrow Agent, the Escrow Agent, at the written direction of the Trustee, shall, sell or cause the same to be sold at any broker’s board or at a public or private sale, in one or more sales or lots, at such price or prices as the Trustee may deem
commercially reasonable, for cash or on credit or for future delivery, without assumption of any credit risk. The purchaser of any or all Collateral so sold shall thereafter hold the same absolutely, free from any claim, encumbrance or right of any kind whatsoever created by or through the Issuer. Unless any of the Collateral threatens, in the reasonable judgment of the Trustee, to decline speedily in value or is or becomes of a type sold on a recognized market, the Trustee will give the Issuer reasonable notice of the time and place of any public sale thereof, or of the time after which any private sale or other intended disposition is to be made. Any sale of the Collateral conducted in conformity with reasonable commercial practices of banks, insurance companies, commercial finance companies, or other financial institutions disposing of property similar to the Collateral shall be
deemed to be commercially reasonable. Any requirements of reasonable notice shall be met if such notice is mailed to the Company as provided in Clause 11 hereof at least five (5) days before the time of the sale or disposition. The Trustee, Escrow Agent or any Holder may, in its own name or in the name of a designee or nominee, buy any of the Collateral at any public sale and, if permitted by applicable law, at any private sale. All expenses (including court costs and reasonable attorneys’ fees, expenses and disbursements) of, or incident to, the enforcement of any of the provisions hereof shall be recoverable from the proceeds of the sale or other disposition of the Collateral.

 

	
(b)  

	
Each of the Issuer and Parent further agrees to use its reasonable best efforts to do or cause to be done all such other acts as may be necessary to make such sale or sales of all or any portion of the Collateral pursuant to this Clause 9 valid and binding and in compliance with any and all other applicable requirements of law. The Issuer and Parent further agrees that a breach of any of the covenants contained in this Clause 9 will cause irreparable injury to the Trustee, Escrow Agent and the Holders, that the Trustee, Escrow Agent and the Holders have no adequate remedy at law in respect of such breach and, as a consequence, that each and every covenant contained in this Clause 9 shall be specifically enforceable against the
Issuer and Parent, and the Issuer and Parent hereby waive and agree not to assert any defenses against an action for specific performance of such covenants except for a defense that no Event of Default has occurred.

 

	
10.  

	
FEES AND EXPENSES

 

	
10.1.  

	
Parent and Issuer shall in accordance with Clause 6.1(g) pay to the Escrow Agent:

 

	
(a)  

	
all reasonable out-of-pocket expenses incurred by the Escrow Agent in performance of its role under this Agreement (including, but not limited to, all legal fees, stamp and other documentary duties or taxes and expenses incurred in connection with the preparation and negotiation of this Agreement) and/or expenses of any transfers of all or part of the Escrow Amount including but not limited to charges imposed by any banks or other third parties in relation to any such transfer; and

 

 

  

15

  

 

	
(b)  

	
additional remuneration at the Escrow Agent’s prevailing rate from time to time if (y) the Escrow Agent is required to undertake work which it reasonably considers to be of an extraordinary nature and (z) the Escrow Agent has notified Parent and Issuer of its intention to charge such additional remuneration. The Parties acknowledge that work of an extraordinary nature includes, without limitation,

 

	
(i)  

	
involvement in any disputes between the Parties relating to this Agreement or the Escrow Amount;

 

	
(ii)  

	
material discussions as to the interpretation of this Agreement or any applicable law or regulation;

 

	
(iii)  

	
involvement in or associated with any legal or regulatory proceedings;

 

	
(iv)  

	
issues arising out of an insolvency procedure or similar relating either to Parent or Issuer; and

 

	
(v)  

	
material amendments to this Agreement or work associated with the review and/or execution of any additional documentation not in the contemplation of all of the Parties at the date of this Agreement.

 

	
10.2.  

	
All documented amounts of whatever nature payable to, and recoverable by, the Escrow Agent pursuant to the terms of this Agreement shall be payable without set-off or counterclaim, by Parent and Issuer within ten (10) Business Days of receipt by Parent and Issuer of any invoice of the Escrow Agent. Payment routing details are appended to this Agreement.

 

	
11.  

	
NOTICES

 

	
11.1.  

	
All communications required pursuant to this Agreement shall be in writing, in English and addressed to the respective party as follows:

 

	
(a)  

	
if to Parent or Issuer:

 

6 Sylvan Way, Parsippany

 

NJ 07054, United States

 

Attention:  David Wyshner

 

Fax:   +1 (973) 496-5080

 

E-mail:   david.wyshner@avisbudget.com (to which account statements may be sent)

 

or such other details as Parent and Issuer may notify to each Party not less than five (5) Business Days’ notice.

 

	
(b)  

	
if to the Representative:

 

 

  

16

  

 

1585 Broadway

 

New York, NY 10036

 

USA

 

Attention:   Kevin Emerson

 

Fax:   +1 (212) 507-1042

 

E-mail:   kevin.emerson@morganstanley.com  (to which account statements may be sent)

 

or such other details as the Representative may notify to each Party by not less than five (5) Business Days’ notice.

 

	
(c)  

	
if to the Escrow Agent:

 

The Bank of Nova Scotia Trust Company of New York

 

One Liberty Plaza

 

New York, NY 10006

 

USA

 

Attention:     Vice President

 

Fax:   +1 (212) 225-5436

 

Email (for general correspondence to the Escrow Agent only; any notice, Instruction, consent or similar communication required by the terms of this Agreement shall only be given in writing delivered in person, by post or by fax): warren_goshine@scotiacapital.com

 

or such other details as the Escrow Agent may notify to each Party by not less than five (5) Business Days’ notice.

 

	
(d)  

	
if to the Trustee:

 

The Bank of Nova Scotia Trust Company of New York

 

One Liberty Plaza

 

New York, NY 10006

 

USA

 

Attention:   Vice President

 

Fax:   (212) 225-5436

 

  

17

  

Email:   john_neylan@scotiacapital.com

 

or such other details as the Trustee may notify to each Party by not less than five (5)Business Days’ notice.

 

	
(e)  

	
any Payment Instruction or communication under Clauses 8.1 and 8.2 may only be sent to the Escrow Agent by fax.

 

	
(f)  

	
Schedule 2 (Authorized Representatives and Call-back Contacts) or any communication under Clauses 5.2 and 11.3 may only be sent to the Escrow Agent in original form in person or by post.

 

	
11.2.  

	
Except as provided below, any communication in connection with this Agreement will be deemed to be given as follows:

 

	
(a)  

	
if delivered in person, at the time of delivery;

 

	
(b)  

	
if posted, five (5) Business Days after being deposited in the post, postage prepaid, in a correctly addressed envelope;

 

	
(c)  

	
if by fax when received in legible form; and

 

	
(d)  

	
if by e-mail or any other electronic communication (subject to the limitations set out in Clause 11.1(c) above), when received in legible form.

 

	
11.3.  

	
A communication given under Clause 11.2 above but received on a non-Business Day, or after close of business on a Business Day in the place of receipt will only be deemed to be given on the next Business Day in that place.

 

	
12.  

	
AGREEMENTS AMONG PARENT, ISSUER AND REPRESENTATIVE

 

	
12.1.  

	
Each of Parent and Issuer undertakes to the Trustee, the Escrow Agent and the Representative that, prior to the termination of this Agreement:

 

	
(a)  

	
it has not and will not create or permit to arise or subsist any lien, right of set off, amalgamation, combination of accounts or any encumbrance or rights or remedies in respect thereof on or over the Escrow Accounts or the funds standing to the credit thereof  except as expressly contemplated by the terms of this Agreement;

 

	
(b)  

	
it has not and will not grant to any person any right to withdraw, withhold or to apply the funds standing to the credit of the Escrow Accounts other than as expressly contemplated by the terms of this Agreement.

 

	
13.  

	
GENERAL

 

	
13.1.  

	
This Agreement shall be binding upon and inure solely for the benefit of the Parties and their respective successors and assigns. Other than as expressly contemplated in this Agreement, none of the Parties may transfer or assign any of its rights or obligations under this Agreement without the prior written consent of the other Parties.

 

	
13.2.  

	
The Escrow Agent shall not be bound by any modification of this Agreement, including the transfer of any interest hereunder, unless such modification is in writing and signed by the Escrow Agent, The Escrow Agent may transfer and/or assign any of its rights or obligations under this Agreement to any of its affiliates without the consent of either Parent or Issuer.

 

 

  

18

  

 

	
13.3.  

	
Terms of this Agreement may only be waived by written consent in accordance with Clause 11 signed by the Party granting the waiver. The waiver by any Party hereto of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision and any extension of time for the performance of any obligation shall not be deemed to be an extension of time for the performance of any other obligation.

 

	
13.4.  

	
This Agreement contains the whole agreement between the Parties relating to the subject matter of this Agreement at the date of this Agreement to the exclusion of any terms implied by law which may be excluded by contract and supersedes any previous written or oral agreement between the Parties in relation to the matters dealt with in this Agreement.

 

	
(a)  

	
Each Party acknowledges that it has not been induced to enter into this Agreement by any representation, warranty or undertaking not expressly incorporated into it.

 

	
(b)  

	
So far as is permitted by law and except in the ease of fraud, each of Parent and Issuer agrees and acknowledges that its only right and remedy in relation to any representation or warranty made or given in connection with this Agreement shall be for breach of the terms of this Agreement to the exclusion of all other rights and remedies (including those in tort or arising under statute).

 

	
14.  

	
GOVERNING LAW AND JURISDICTION

 

	
14.1.  

	
This Agreement shall be governed by and construed in accordance with the laws of the State of New York.

 

	
14.2.  

	
Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby ("Related Proceedings") may be instituted in the federal courts of the United States of America located in the City and County of New York or the courts of the State of New York in each case located in the City and County of New York (collectively, the "Specified Courts"), and each Party irrevocably submits to the exclusive jurisdiction (except for suits, actions, or proceedings instituted in regard to the enforcement of a judgment of any Specified Court in a Related Proceeding, as to which such jurisdiction is non-exclusive) of the Specified Courts in any Related Proceeding.  Service of any process,
summons, notice or document by mail to such party's address set forth above shall be effective service of process for any Related Proceeding brought in any Specified Court.  The Parties irrevocably and unconditionally waive any objection to the laying of venue of any Specified Proceeding in the Specified Courts and irrevocably and unconditionally waive and agree not to plead or claim in any Specified Court that any Related Proceeding brought in any Specified Court has been brought in an inconvenient forum.

 

	
14.3.  

	
If a provision of this Agreement or Instruction is or becomes illegal, invalid or unenforceable in any jurisdiction, that shall not affect the validity or enforceability in that jurisdiction of any other provision of this Agreement or the respective Instruction, as the case may be.

 

	
14.4.  

	
This Agreement and any Instruction may be executed in any number of counterparts, each having the same effect as if the signatures on the counterparts were on a single copy of this Agreement or respective Instruction, as the case may be.

 

 

  

19

  

 

	
14.5.  

	
Notwithstanding any term of this Agreement, the consent of any third party is not required for any variation (including any release, or compromise of any liability under) or termination of this Agreement, and any such variation, waiver or termination may be made without regard for the interests of any third party. The Parties agree that no third party may rely on this Agreement to any extent whatsoever.

 

	
15.  

	
TERMINATION

 

	
15.1.  

	
Subject to Clause 6.1(1), this Agreement shall terminate and the Escrow Agent shall be discharged from all duties and liabilities hereunder, only upon such date as the Escrow Agent shall have distributed all of the Escrow Amount pursuant to this Agreement.

 

	
15.2.  

	
Upon termination of this Agreement in accordance with Clause 15.1, the Escrow Agent shall promptly close the Escrow Accounts.

 

THIS AGREEMENT has been entered into on the date stated at the beginning of this Agreement.

  

20

  

SCHEDULE 1-A

 

FORM OF OFFICER’S CERTIFICATE

 

The Bank of Nova Scotia Trust Company of New York

 

One Liberty Plaza

 

New York, NY 10006

 

For the attention of Vice President

 

Fax:           (212) 225-5436

 

[DATE]

 

We refer to the agreement dated October 3, 2011 among Avis Budget Group, Inc., AE Escrow Corporation, Morgan Stanley & Co. LLC, as Representative, The Bank of Nova Scotia Trust company of New York, as Trustee and The Bank of Nova Scotia Trust Company of New York, as Escrow Agent (the “Escrow Agreement”).

 

This Officer’s Certificate is being provided to you in accordance with Clause 5.1(a) of the Escrow Agreement. All terms not defined herein shall have the meaning ascribed to them in the Indenture, dated October 3, 2011, between AE Escrow Corporation and The Bank of Nova Scotia Trust Company of New York, relating to the 9.75% Senior Notes due 2020 issued by AE Escrow Corporation (as amended or supplemented, the “Indenture”).  The undersigned hereby certify, solely in their capacities as [•] of Avis Budget Group, Inc. and as [•] of AE Escrow Corporation, respectively, that, on the date hereof:

 

	
1.  

	
the Acquisition by the Company has been consummated in accordance with the Implementation Agreement;

 

	
2.  

	
simultaneously with the release of the Escrow Amount, all other consideration to be posted to the shareholders of Avis Europe plc pursuant to the UK Takeover Code will be made available to pay for the Acquisition as contemplated by the Implementation Agreement;

 

	
3.  

	
no Default or Event of Default has occurred or is continuing under Sections 601(i), 601(ii) and 601(viii) of the Indenture; and

 

	
4.  

	
the Escrow Issuer shall simultaneously merge with and into the Company, the Company and Avis Finance shall simultaneously assume all the obligations of the Escrow Issuer under the Notes and the Indenture and the Guarantors shall simultaneously become parties to the Indenture and issued their Guarantees.

 

 

  

21

  

 

IN WITNESS WHEREOF, I have hereunto signed my name this ___th day of ___________, 2011.

 

Avis Budget Group, Inc.

 

By:  __________________________

	
  

	
(Authorised Representative)

 

And

 

AE Escrow Corporation

 

By:  __________________________

	
  

	
(Authorized Representative)

 

  

22

  

SCHEDULE 1-B

 

FORM OF OFFICER’S CERTIFICATE

 

The Bank of Nova Scotia Trust Company of New York

 

One Liberty Plaza

 

New York, NY 10006

 

For the attention of Vice President

 

Fax:           (212) 225-5436

 

 [DATE]

 

We refer to the agreement dated October 3, 2011 among Avis Budget Group, Inc., AE Escrow Corporation, Morgan Stanley & Co. LLC, as Representative, The Bank of Nova Scotia Trust company of New York, as Trustee and The Bank of Nova Scotia Trust Company of New York, as Escrow Agent (the “Escrow Agreement”).

 

This Officer’s Certificate is being provided to you in accordance with Clause 5.1(a) of the Escrow Agreement. All terms not defined herein shall have the meaning ascribed to them in the Escrow Agreement.  The undersigned hereby certify, solely in their capacities as [•] of Avis Budget Group, Inc. and as [•] of AE Escrow Corporation, respectively, that, on the date hereof, all conditions set forth in the First Officers’ Certificate delivered on [    ], 2011 have been satisfied.

 

  

23

  

IN WITNESS WHEREOF, I have hereunto signed my name this ___th day of ___________, 2011.

 

Avis Budget Group, Inc.

 

By:  __________________________

	
  

	
(Authorised Representative)

 

And

 

AE Escrow Corporation

 

By:  __________________________

	
  

	
(Authorized Representative)

 

  

24

  

SCHEDULE 1-C

 

FORM OF PAYMENT INSTRUCTION1

 

The payment contemplated by this Payment Instruction represents the final payment to be made from the Escrow Accounts. The Escrow Accounts are therefore to be closed in accordance with Clause 15.2.

 

The Bank of Nova Scotia Trust Company of New York

 

One Liberty Plaza

 

New York, NY 10006

 

For the attention of Vice President

 

Fax:           (212) 225-5436

 

 [DATE]

 

Escrow Agreement

 

We refer to the agreement dated October 3, 2011 between Avis Budget Group, Inc., AE Escrow Corporation and The Bank of Nova Scotia Trust Company of New York, as Escrow Agent (the “Escrow Agreement”). Words and expressions used in this Payment Instruction shall have the same meanings as in the Escrow Agreement.

 

This Payment Instruction is being provided to you in accordance with Clause 5.1(a) of the Escrow Agreement. You are instructed to pay the following amount from the Escrow Account in the order specified specified below:

 

[TO BE USED IF INITIAL PURCHASERS’ DISCOUNT IS PAID SIMULTANEOUSLY WITH PAYMENT FOR THE ACQUISITION]

 

[1. You are hereby instructed to pay to the Representative for the benefit of the Initial Purchasers the Initial Purchasers’ Discount of $5,625,000 to:

 

	
(a)  

	
Citibank NA

 

ABA number (if US Dollars): 021-000-089

 

	
(b)  

	
Account Name: Morgan Stanley & Co.

 

	
(c)  

	
Account Number: 30539971

 

	
(d)  

	
FFC A/C: 088-0770H-0

 

	
(e)  

	
Attention: Bryan Smull

 

Amount:                                FIVE MILLION SIX HUNDRED TWENTY-FIVE THOUSAND DOLLARS

 

Currency:                                USD

 

 

 

 

	
  

	
1 [To be revised to reflect the Transfer of Proceeds to the UK Escrow Account to the extent it occurs in accordance with the terms of the Escrow Agreement.] [NTD: confirm whether this is still needed]

 

  

25

  

 

	
(f)  

	
[Payment date]

 

2. You are hereby instructed to pay the balance of the escrowed amount to [Account for Acquisition consideration]:

 

	
(g)  

	
[Correspondent Bank]

 

[SWIFT Code]/[ABA number (if US Dollars)]

 

	
(h)  

	
[Account Name]

 

	
(i)  

	
[Account Number]

 

	
(j)  

	
[Reference, if applicable]

 

Amount:                                [in words]

 

Currency:                                [●]

 

	
(k)  

	
[Payment date]]

 

[TO BE USED IF INITIAL PURCHASERS’ DISCOUNT HAS BEEN PAID TO THE INITIAL PURCHASERS PRIOR TO THE DATE OF ESCROW RELEASE PURSUANT TO THE PROVISO OF CLAUSE 5.1(a)]

 

[1. You are hereby instructed to pay to [    ] [Account for Acquisition consideration]:

 

	
(l)  

	
[Correspondent Bank]

 

[SWIFT Code]/[ABA number (if US Dollars)]

 

	
(m)  

	
[Account Name]

 

	
(n)  

	
[Account Number]

 

	
(o)  

	
[Reference, if applicable]

 

Amount:                                [in words]

 

Currency:                                [●]

 

	
(p)  

	
[Payment date]]

 

2. You are hereby instructed to pay the balance of the escrowed amount to [Account of Issuer (or its successor)]:

 

	
(q)  

	
[Correspondent Bank]

 

[SWIFT Code]/[ABA number (if US Dollars)]

 

	
(r)  

	
[Account Name]

 

	
(s)  

	
[Account Number]

 

	
(t)  

	
[Reference, if applicable]

 

 

  

26

  

 

Amount:                                [in words]

 

Currency:                                [●]

 

	
(u)  

	
[Payment date]]

 

 

 

[N.B. This Payment Instruction is to be received by the Escrow Agent by close of business (New York time) two Business Days prior to the value date of the intended payment.]

 

This Payment Instruction shall be governed by the laws of the State of New York.

 

 

Avis Budget Group, Inc.

 

By:  __________________________

	
  

	
(Authorised Representative)

 

And

 

AE Escrow Corporation

 

By:  __________________________

	
  

	
(Authorized Representative)

 

  

27

  

SCHEDULE 2

 

CALL-BACK CONTACTS

 

	
Avis Budget Group, Inc.

	  	  
	
Name

	
Position

	
Telephone number

	
1.  David Wyshner

	
Executive Vice President and Chief Financial Officer

	
973-996-7938

	
2.  Rochelle Tarlowe

	
Treasurer

	
973-996-5285

	
3.  David Calabria

	
Assistant Treasurer

	
973-996-6437

	
4.  Izzy Martins

	
Chief Accounting Officer

	
973-996-5285

 

	
Representative

	  	  
	
Name

	
Position

	
Telephone number

	
I.

	  	  
	
2.

	  	  
	
3.

	  	  
	
4.

	  	  
	
Trustee

	  	  
	
Name

	
Position

	
Telephone number

	
I.

	  	  
	
2.

	  	  
	
3.

	  	  
	
4.

	  	  

 

  

28

  

SCHEDULE 3

 

PAYMENT ROUTING INSTRUCTION RE ESCROW ACCOUNT[S]

 

 

Pay to:                                The Bank of Nova Scotia New York Agency

 

SWIFT code:                     NOSCUS33

 

For Account of:                 [l]

 

SWIFT Code:                     [l]

 

For Further Credit to:        BNST as Escrow Agent for AE Escrow Corporation

 

Account Number:              03398-14

 

Reference:                           [Reference, if applicable]

 

  

29

  

SCHEDULE 4

 

EXCHANGE RATES

 

 

The Designated Exchange Rate shall be the bid spot rate obtained from the WMR_USDGBP 4pm London fixing page.

 

The Fixed Exchange Rate shall be 1.62086 US Dollar per 1 UK British Pound.

 

 

  

30

  

SIGNATORIES

 

AVIS BUDGET GROUP, INC.

 

By: /s/ David B. Wyshner   

 

 

AE ESCROW CORPORATION

 

By: /s/ David Calabria                                                                  

 

 

MORGAN STANLEY & CO. LLC

 

By: /s/ Justin Kotzin                                                              

 

 

THE BANK OF NOVA SCOTIA TRUST COMPANY OF NEW YORK

 

as Escrow Agent

 

By: /s/ Warren Goshine                                                                  

 

 

 

 

Acknowledged and Agreed by:

 

THE BANK OF NOVA SCOTIA TRUST COMPANY OF NEW YORK

 

as Trustee

 

By: /s/ Warren Goshine                                                              

 

 

 

  

31

  

APPENDIX

 

INVOICE PAYMENT DETAILS

 

US Dollars

 

Pay to:                                [l]

 

SWIFT code:                     [l]

 

For the account of            [l]

 

Account number:              [l]

 

For further credit to:         [l]

 

Account Number:             [l]

 

IBAN:                                  [l]

 

Reference:                                Invoice No: [Please quote invoice number]

 

 

  

32

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