Document:

Exhibit 4.15

 

TERMS OF OFFER

 

	
  

  

  

  

  

  

  

  

  

  

  

  

  

  Terms and Conditions 

  relating to:

  	
   

  	
  

   

  

   

   

   

   

  Hertz (U.K.) Limited  

   

   

   

   

   

   

   

  £215
  million of UK Leasing Facilities  

   

  Arranged
  by Lombard North Central Plc & The 

  Royal Bank of Scotland  

   

  20
  December 2007

   

   

   

   

   

   

   

   

   

   

   

   

  
	
   

  	
   

  	
   

  

   

   

   

   

   

  Registered
  in Scotland No 90312 Registered Office: 36 St Andrew Square   Edinburgh
  EH2 2YE   A Member of IMRO and of SFA

  

 

 

 

 

UK LEASING FACULTIES

 

Summary of Structure

 

The Terms of
Offer have been based on the following financing requirement:

 

Sources

 

	
   

  	
   

  	
  £’000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Stand-alone UK Vehicle Leasing facility

  	
   

  	
  £215,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  £215,000

  	
   

  

 

Uses

 

	
   

  	
   

  	
  

  £’000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Finance of UK Car Rental Fleet: - Hertz (U.K.)
  Limited

  	
   

  	
  £215,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  £215,000

  	
   

  

 

 

 

 

 

 

1

 

 

	
  Note - Existing Terms & 

  Letter of Understanding:

  	
   

  	
  The terms of
  this facility as set out in this term sheet should be read in conjunction
  with the Letter’s of Understanding (“LOU”),
  including any appendices, entered into between the Lessor and Lessee (Hertz
  (U.K.) Limited LOU dated 18 August 1997), which sets out the detailed
  terms applicable to individual leases (including the sales agency and
  maintenance obligations). 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Terms used
  in this section of this term sheet and not otherwise defined in this term
  sheet have the meaning given to them in the LOU. 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Terms which
  are not marked “#” are irrelevant to the initial sale and leaseback which the
  Lessor and Lessee propose to enter ahead of documenting the committed
  facility contemplated by this term sheet. In particular, Information
  Undertakings, Representations and Warranties, General Undertakings and Events
  of Default shall not apply to the initial sale and leaseback, the terms of
  the LoU applying instead as regards such matters.

  
	
   

  	
   

  	
   

  
	
  Facility:

  	
   

  	
  UK Vehicle
  Leasing facility

  
	
   

  	
   

  	
   

  
	
  Facility Draw Down:

  	
   

  	
  By way of
  Sale & Leaseback

  
	
   

  	
   

  	
   

  
	
  # Lessee:

  	
   

  	
  Hertz (U.K.)
  Limited

  
	
   

  	
   

  	
   

  
	
  # Lessor:

  	
   

  	
  Lombard
  North Central plc

  
	
   

  	
   

  	
   

  
	
  # Guarantor:

  	
   

  	
  Hertz
  International Limited

  
	
   

  	
   

  	
   

  
	
  Total Facility Amount:

  	
   

  	
  £215.0
  million phased over the Commitment Period as per below:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  	
  Available
  Facility Amount:

  
	
   

  	
   

  	
  #  December 2007

  	
   

  	
  £135.0
  million

  
	
   

  	
   

  	
  May 2008
  

  	
   

  	
  £175.0
  million

  
	
   

  	
   

  	
  May 2009  

  	
   

  	
  £185.0
  million

  
	
   

  	
   

  	
  May 2010

  	
   

  	
  £195.0
  million

  
	
   

  	
   

  	
  May 2011

  	
   

  	
  £205.0
  million

  
	
   

  	
   

  	
  May 2012

  	
   

  	
  £215.0
  million

  
	
   

  	
   

  	
   

  
	
  # Light Commercial 

  Vehicles Carve-Out:

  	
   

  	
  £30 million
  carve-out for Light Commercial Vehicles

  
	
   

  	
   

  	
   

  
	
  # Currency:

  	
   

  	
  Sterling

  
	
   

  	
   

  	
   

  
	
  # Purpose:

  	
   

  	
  To finance
  the UK Car Rental Fleet.

  
	
   

  	
   

  	
   

  
	
  Availability  & 

  Drawdown:

  	
   

  	
  Immediate
  upon signing of the Facilities Agreement and conditional on satisfaction of
  the Conditions Precedent.

  
	
   

  	
   

  	
   

  
	
  Commitment Period:

  	
   

  	
  60 months,
  subject to the provisions within the LOU and those contained within this Term
  Sheet and any additional provisions, which may be subsequently incorporated
  within an Override Agreement.

  
	
   

  	
   

  	
   

  
	
  # Assets:

  	
   

  	
  New Private
  Motor Vehicles (“Cars”) 

  
	
   

  	
   

  	
  New Light
  Commercial Vehicles (“LCV’s”)

  
	
   

  	
   

  	
   

  
	
  # Lease Term:

  	
   

  	
  Cars - Up to
  6 months 

  
	
   

  	
   

  	
  LCV’s - Up
  to 18 months

  
	
   

  	
   

  	
   

  
	
  # Advance Rate:

  	
   

  	
  100% of the
  discounted vehicle purchase price net of VAT

  

 

 

 

 

2

 

 

	
  # Residual Value:

  	
   

  	
  Cars — Up to
  89% of original vehicle cost net of VAT 

  
	
   

  	
   

  	
  LCV’s — Up
  to 70% of original vehicle cost net of VAT

  
	
   

  	
   

  	
   

  
	
  # Rental Profile:

  	
   

  	
  Monthly in
  advance

  
	
   

  	
   

  	
   

  
	
  # Lease Rentals:

  	
   

  	
  Lease
  Rentals (plus VAT charged at the standard rate) will be payable monthly in
  advance. All Lease Rentals (and any other payments due under the
  documentation) will be payable in £ sterling.

  
	
   

  	
   

  	
   

  
	
  # Sales Agency:

  	
   

  	
  The Lessee
  will be granted a Sales Agency for the disposal of the vehicles. Terms of the
  Sales Agency will remain in accordance with those set out in the LOU.

  
	
   

  	
   

  	
   

  
	
  # Pricing:

  	
   

  	
  Please refer
  to Appendix 1 — Indicative Pricing.

  
	
   

  	
   

  	
   

  
	
  # Security:

  	
   

  	
  As detailed
  under “Security, Covenants and Undertakings”.

  
	
   

  	
   

  	
   

  
	
  # Lease Tax Assumptions:

  	
   

  	
  Usual for this type of facility including, but not limited to:  

  
	
   

  	
   

  	
  ·

  	
  The Lessor will receive Writing Down Allowances (“WDA’s”) at a rate of
  25% per annum on a reducing balance basis;

  
	
   

  	
   

  	
  ·

  	
  The rate of Corporation Tax applicable to each accounting period of the
  Lessor will be 30%;

  
	
   

  	
   

  	
  ·

  	
  Corporation Tax will be paid by the Lessor on a quarterly basis as set
  out in Finance Act 1998; 

  
	
   

  	
   

  	
  ·

  	
  Rentals are subject to recoverable VAT at the standard rate; and 

  
	
   

  	
   

  	
  ·

  	
  No change in fiscal legislation or practice affecting the Lessor’s
  anticipated return.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  This is not intended to be a comprehensive list of all the tax
  assumptions which will be contained within the lease documentation and to the
  extent that any assumption proves to be incorrect, the Lease Rentals will be
  adjusted upwards or downwards, as appropriate, such that the Lessors’ after
  tax rate of return is preserved.

  
	
   

  	
   

  	
   

  
	
  # Vehicle Return 

  Conditions:

  	
   

  	
  Terms in accordance with the Addendum to the Rental Agreement which
  forms an appendix to the LOU

  
	
   

  	
   

  	
   

  
	
  # Insurance:

  	
   

  	
  In accordance with the terms set out in the LOU the Lessee will be
  responsible for ensuring adequate equipment and third party liability
  insurance, to the satisfaction of the Lessor, is in place throughout the
  Lease Term.

  
	
   

  	
   

  	
   

  
	
  # Maintenance:

  	
   

  	
  In accordance with the terms set out in the LOU the Lessee shall be
  responsible for maintaining and operating the equipment in good condition
  according to the manufacturers guidelines and normal standards applicable to
  its business sector.

  
	
   

  	
   

  	
   

  
	
  # Assignment and 

  Transfers:

  	
   

  	
  The Lessor may assign or transfer all of any part of its rights to any
  company. The Lessee may not assign or transfer any of its rights.

  
	
   

  	
   

  	
   

  
	
  Arrangement Fee:

  	
   

  	
  The Lessee will pay a non-refundable Arrangement Fee to the Lessor of
  0.25% phased over the Commitment Period as follows:

  

 

 

 

3

 

	
   

  	
   

  	
  Date

  	
   

  	
  Facility

  	
   

  	
  Arrangement Fee

  
	
   

  	
   

  	
  # December 2007 

  	
   

  	
  £135.0 million facility

  	
   

  	
  £337,500

  
	
   

  	
   

  	
  May 2008 

  	
   

  	
  £40.0 million increase

  	
   

  	
  £100,000

  
	
   

  	
   

  	
  May 2009 

  	
   

  	
  £10.0 million increase

  	
   

  	
  £25,000

  
	
   

  	
   

  	
  May 2010 

  	
   

  	
  £10.0 million increase

  	
   

  	
  £25,000

  
	
   

  	
   

  	
  May 2011 

  	
   

  	
  £10.0 million increase

  	
   

  	
  £25,000

  
	
   

  	
   

  	
  May 2012

  	
   

  	
  £10.0 million increase

  	
   

  	
  £25,000

  
	
   

  	
   

  	
   

  
	
  Commitment Fee:

  	
   

  	
  0.75% calculated on the unutilised amount on 80% of the Available
  Facility. This fee will be charged annually based on a quarterly utilisation
  test.  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The
  commitment fee shall be calculated by reference to the mean of the Available
  Facility measured on the four Quarter Dates in that year (or if the last day
  on which the Lombard UK Facility is available on a committed basis is not a
  Quarter Date, then on that date and the three Quarter Dates immediately
  preceding it).

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date

  	
   

  	
  80% of the Available
  Facility

  
	
   

  	
   

  	
  December 2007

  	
   

  	
  £108.0 million

  
	
   

  	
   

  	
  May 2008 

  	
   

  	
  £140.0 million

  
	
   

  	
   

  	
  May 2009 

  	
   

  	
  £148.0 million

  
	
   

  	
   

  	
  May 2010 

  	
   

  	
  £156.0 million

  
	
   

  	
   

  	
  May 2011 

  	
   

  	
  £164.0 million

  
	
   

  	
   

  	
  May 2012

  	
   

  	
  £172.0 million

  
	
   

  	
   

  	
   

  
	
  # Costs:

  	
   

  	
  All Costs (including the Lessor’s legal costs) and Expenses reasonably
  incurred by the Lessor in connection with the preparation, negotiation,
  printing, and execution of the Facility shall be paid by the Lessee promptly
  on demand whether or not the Facility documentation is signed.

  
	
   

  	
   

  	
   

  
	
  # Change in Fiscal or  

  Accounting Legislation or 

  Practice:

  	
   

  	
  In the event that there are either actual or proposed changes to the UK
  tax, regulatory International Financial Reporting Standards (IFRS) regime or
  its interpretation or application:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·

  	
  the Lessor reserves the right to re-consider the structure. Such a
  change in the Legislation either actual or proposed may require the
  restructuring of all or part of the proposal; and 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·

  	
  if change adversely affects the Lessee, the Lessor will discuss in good
  faith with the Lessee (but with no obligation to agree) (i) possible
  amendments to the facility to mitigate that adverse effect or (ii) the
  termination of the facility. 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Lessor also reserves the right to withdraw from the proposed
  facility in the event that it is not possible to restructure without
  significantly increasing its risks. No such actions will be taken without
  appropriate consultation.

  
	
   

  	
   

  	
   

  
	
  # Documentation:

  	
   

  	
  The existing Hertz (U.K.) Limited Master Rental Terms and Letter of
  Understanding will form the basis of this facility and an Override Agreement
  will be drafted to reflect these Terms of Offer detailed herein.

  
										

 

 

 

 

4

 

 

SECURITY, COVENANTS AND UNDERTAKINGS

 

	
  # Security:

  	
   

  	
  Hertz (U.K.) Limited:  

  
	
   

  	
   

  	
  ·

  	
  Lessor to
  retain title to all the vehicles until a sale by the Lessee in accordance
  with its Sales Agency under the LOU. 

  
	
   

  	
   

  	
  ·

  	
  A guarantee
  to be taken from Hertz International Limited.

  
	
   

  	
   

  	
   

  
	
  Financial Covenants:

  	
   

  	
  The
  following covenants will be tested on the results for the Lessee on a
  quarterly basis based on rolling 12 months trading performance. 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·

  	
  Utilisation:  

  
	
   

  	
   

  	
   

  	
  The minimum
  utilisation level for the UK fleet: 65%; and 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·

  	
  Interest
  Cover:

  
	
   

  	
   

  	
   

  	
  The ratio of
  EBITDA to Interest Expense (Interest to include fleet interest, but exclude
  Arrangement Fees) in respect of the 12 month period ending on each testing
  date shall not be less than 1.5x; 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·

  	
  Fleet
  Debt to Fleet Capital Employed:

  
	
   

  	
   

  	
   

  	
  The ratio of
  Total Fleet Debt to Fleet Capital Employed for the each testing date shall
  not be more than 1:1. 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·

  	
  Tangible
  Net worth:  

  
	
   

  	
   

  	
   

  	
  The Tangible Net Worth at any time during each testing period shall not
  be less than a £15 million.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  First
  covenant test will be for the quarter ended 30.06.2008.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Lombard Sub-Hire 

  Audits:

  	
   

  	
  Hertz (U.K.)
  Limited will be subject to on-going 6- monthly Sub-Hire Audits by Lombard.

  
	
   

  	
   

  	
   

  
	
  Information 

  Undertakings:

  	
   

  	
  Usual
  information requirements for this type of facility, to include but not
  limited to the provision of:

  
	
   

  	
   

  	
  ·

  	
  annual
  audited financial statements for the Lessee as soon as they become available;

  
	
   

  	
   

  	
  ·

  	
  monthly
  management accounts as soon as they become available but in any event within
  30 days after the end of each month;

  
	
   

  	
   

  	
  ·

  	
  covenant
  compliance certificates signed by 2 directors to accompany annual financial
  and / or management accounts for each relevant testing period;

  
	
   

  	
   

  	
  ·

  	
  an annual
  operating plan to be provided not less than 30 days prior to the start of
  each of it’s financial year’s, including projected profit and loss, balance
  sheet, cashflow statement and projected financial covenant calculations;

  
	
   

  	
   

  	
  ·

  	
  notification
  of default promptly upon becoming aware of its occurrence; 

  
	
   

  	
   

  	
  ·

  	
  any
  circulars and other information formally circulated to shareholders; and

  
	
   

  	
   

  	
  ·

  	
  information
  on request reasonably required

  
	
   

  	
   

  	
   

  
	
  Representations and 

  Warranties:

  	
   

  	
  The
  representations to be made are usual for this type of facility, including
  (but not limited to) the following, subject to exceptions and materiality to
  be agreed: 

  
	
   

  	
   

  	
  ·

  	
  compliance
  with corporate formalities;

  
	
   

  	
   

  	
  ·

  	
  status;

  

 

 

 

5

 

 

	
   

  	
   

  	
  ·

  	
  binding
  obligations;

  
	
   

  	
   

  	
  ·

  	
  non conflict
  with other obligations;

  
	
   

  	
   

  	
  ·

  	
  power and
  authority;

  
	
   

  	
   

  	
  ·

  	
  validity and
  admissibility in evidence;

  
	
   

  	
   

  	
  ·

  	
  governing
  law and enforcement;

  
	
   

  	
   

  	
  ·

  	
  no default;

  
	
   

  	
   

  	
  ·

  	
  no
  misleading information;

  
	
   

  	
   

  	
  ·

  	
  financial
  statements;

  
	
   

  	
   

  	
  ·

  	
  no
  proceedings pending or threatened;

  
	
   

  	
   

  	
  ·

  	
  compliance
  with environmental laws and licences; and

  
	
   

  	
   

  	
  ·

  	
  solvency

  
	
   

  	
   

  	
   

  
	
  General Undertakings:

  	
   

  	
  The
  undertakings usual for this type of facility, to include but not limited to:

  
	
   

  	
   

  	
  ·

  	
  negative
  pledge subject to agreed exceptions;

  
	
   

  	
   

  	
  ·

  	
  no
  significant adverse effect on licensing agreements;

  
	
   

  	
   

  	
  ·

  	
  to maintain
  satisfactory systems and records;

  
	
   

  	
   

  	
  ·

  	
  rights of
  access to systems and records for the purposes of an audit in respect of
  vehicles financed every six months and on demand at any time following the
  occurrence of a Default for as long as it is continuing; 

  
	
   

  	
   

  	
  ·

  	
  no material
  change in the nature of trade; and 

  
	
   

  	
   

  	
  ·

  	
  insolvency
  regulation.

  
	
   

  	
   

  	
   

  
	
  Events of Default:

  	
   

  	
  Standard
  events of default usual for this type of facility to include, but not limited
  to:

  
	
   

  	
   

  	
  ·

  	
  breach of
  the transaction documents;

  
	
   

  	
   

  	
  ·

  	
  breach of
  financial covenants;

  
	
   

  	
   

  	
  ·

  	
  any other
  breach of terms subject to agreed remedy periods if capable of remedy;

  
	
   

  	
   

  	
  ·

  	
  misrepresentation;

  
	
   

  	
   

  	
  ·

  	
  insolvency;

  
	
   

  	
   

  	
  ·

  	
  cross
  default, subject to an agreed minimum amount;

  
	
   

  	
   

  	
  ·

  	
  invalidity;

  
	
   

  	
   

  	
  ·

  	
  repudiation;

  
	
   

  	
   

  	
  ·

  	
  unlawfulness;
  and

  
	
   

  	
   

  	
  ·

  	
  change of
  control.

  
	
   

  	
   

  	
   

  
	
  # Governing Law:

  	
   

  	
  English

  
	
   

  	
   

  	
   

  
	
  # Jurisdiction:

  	
   

  	
  Courts of
  England

  

 

 

 

6

 

CONDITIONS PRECEDENT

 

Usual
for a facility of this type, to include (but not limited to):

 

 

	
  Financial:

  	
   

  	
  Provision of
  detailed 5 year Operating Plan covering the Commitment Period, providing as a
  minimum monthly financial forecasts to include Profit and Loss, Balance Sheet
  and Cash Flow statements.

  
	
   

  	
   

  	
   

  
	
  Lombard Sub-Hire  

  Audit:

  	
   

  	
  Completion
  of a Lombard Sub-Hire Audit prior to Facility draw down.

  
	
   

  	
   

  	
   

  
	
  # Legal:

  	
   

  	
  Execution
  and completion of appropriate Security formalities.

  
	
   

  	
   

  	
   

  
	
  Other:

  	
   

  	
  Execution of
  all facility documentation satisfactory to all parties and provision of
  supporting board authorities, mandates and constitutional documents.

  

 

 

 

These Terms of
Offer are intended for the exclusive use of the Lessee and shall not be
disclosed by the Lessee to any other person other than the Lessee’s legal and
financial advisors for the purposes of the proposed transaction unless the
prior written consent of the Lessor is obtained.

 

 

 

7

 

APPENDIX 1 - INDICATIVE PRICING

 

 

	
  Pricing Matrix:

  	
   

  	
  The pricing
  matrix provides indicative rental pricing for 3 to 6 month rentals based on
  the assumptions below. 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Pricing is
  based on current tax rates prevailing at the date of these Terms of Offer for
  the December 2007 Sale & Leaseback. 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Indicative
  Pricing is also provided covering future changes in the UK tax regime. Please
  note consultation is on going with HMRC with regard to the exact nature of
  these changes — see note below.

  
	
   

  	
   

  	
   

  
	
  Pricing Matrix 

  	
   

  	
  ·

  	
  Rentals
  payable in advance 

  
	
  Assumptions:

  	
   

  	
  ·

  	
  Initial
  Sale & Leaseback - Inception date assumed 13/12/2007 

  
	
   

  	
   

  	
  ·

  	
  All other
  deals - Inception date assumed mid-month for each month in a quarter. 

  
	
   

  	
   

  	
  ·

  	
  WSP =
  Warranted Sales Proceeds 

  
	
   

  	
   

  	
  ·

  	
  MSP =
  Minimum Sales Proceeds 

  
	
   

  	
   

  	
  ·

  	
  Lease terms
  based on current lease terms

  

 

	
  Short Term Car Rental — Indicative Pricing

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Terms 

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Assumed
  

  	
   

  	
  IRR

  	
   

  	
  WSP

  	
   

  	
  Rental

  	
   

  	
  MSP

  	
   

  	
  Lease Term

  	
   

  
	
  Funding
  Cost

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Initial Sale &
  Leaseback (up to £135m)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.00%

  	
   

  	
  4.00

  	
  %

  	
  93.00

  	
  %

  	
  £39.74

  	
   

  	
  89.00

  	
  %

  	
  3

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other — Current Tax Regime

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.00%

  	
   

  	
  5.08

  	
  %

  	
  93.00

  	
  %

  	
  £22.29

  	
   

  	
  89.00

  	
  %

  	
  6

  	
   

  
	
  6.00%

  	
   

  	
  5.00

  	
  %

  	
  93.00

  	
  %

  	
  £22.25

  	
   

  	
  89.00

  	
  %

  	
  6

  	
   

  
	
  6.00%

  	
   

  	
  4.90

  	
  %

  	
  93.00

  	
  %

  	
  £22.15

  	
   

  	
  89.00

  	
  %

  	
  6

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other — Post
  Allowances & Corporation Tax Changes (28% Corp. Tax & 20%
  WDA’s)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.00%

  	
   

  	
  5.58

  	
  %

  	
  93.00

  	
  %

  	
  £22.68

  	
   

  	
  89.00

  	
  %

  	
  6

  	
   

  
	
  6.00%

  	
   

  	
  5.51

  	
  %

  	
  93.00

  	
  %

  	
  £22.65

  	
   

  	
  89.00

  	
  %

  	
  6

  	
   

  
	
  6.00%

  	
   

  	
  5.41

  	
  %

  	
  93.00

  	
  %

  	
  £22.55

  	
   

  	
  89.00

  	
  %

  	
  6

  	
   

  

 

 

	
  Note:

  	
   

  	
  The UK 2007
  Budget announced changes to Corporation Tax (reduced to 28% from 30%) and
  Writing Down Allowance rates (reduced from 25% to 20%) from 2008 that will
  have an effect on Short Term Car Rental rates once this regime is implemented.
  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Our Trade body, the FLA, is still in consultation with HMRC and hoping
  to persuade them to make changes to the announced regime. In these
  circumstances the above terms do not take into account the above rates and
  any transactions written before 1st April 2008 will be
  subject to revision in accordance with the terms and conditions of the
  agreement dealing with such changes. We will also provide you with updated
  rentals for use post 1st April 2008 once we know that no
  further changes are being made to the tax regime for 2008 tax year.

  

 

 

 

8

 

 

ACCEPTANCE OF THE TERMS OF OFFER

 

These Terms of
Offer are subject to review by legal, operational and insurance advisors with
documents satisfactory to all parties.

 

If you wish to
accept the Terms of Offer described herein, please sign and return the attached
copy of this document by no later than 20th December 2007 and taken up by
no later than 21st December 2007 after which time the terms and
conditions of this offer will expire.

 

 

 

 

	
  FOR AND ON
  BEHALF OF

  	
   

  	
  FOR AND ON
  BEHALF OF

  
	
  LOMBARD
  NORTH CENTRAL PLC

  	
   

  	
  HERTZ
  (U.K.) LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
  By

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title

  	
   

  	
   

  	
  Title

  	
   

  
					

 

 

 

 

9

Letter of Understanding made between Lombard North
Central PLC (“Lombard”)

 

of 3 Princess Way Redhill Surrey RH1 1NP

 

and HERTZ (UK) LTD (the “Hirer”)

 

of RADNOR HOUSE, 1272 LONDON ROAD, NORBURY, LONDON
SW16 4DQ

 

and dated

 

Lombard and the Hirer wish to enter into this
arrangement to accommodate the continuation of leasing facilities between
Lombard and the Hirer following the changes announced in the Budget speech made
on 2nd July 1997.

 

Whilst this arrangement will be fully and irrevocably
binding on Lombard and the Hirer Lombard is willing to enter into subsequent
negotiations in good faith with the Hirer to include any variation subsequently
required by the Hirer particularly, but without limitation to, any changes that
occur when the Finance Bill becomes an Act of Parliament but both Lombard and
the Hirer agree that, if the parties cannot arrive at a mutually acceptable
conclusion, the terms of this agreement will continue to apply in all respects.

 

The terms under which Lombard and the Hirer will enter
into leasing agreements (each the “Rental Agreement” and together the “Rental
Agreements”) from the date of this agreement will be as follows:

 

	
  1.

  	
   

  	
  Each Rental Agreement will be entered into in the
  form attached.

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Each Rental Agreement will be deemed to incorporate
  all of the terms attached to this letter and headed the “Terms of each Rental
  Agreement” (the “Terms”) as if those terms were actually printed on the
  Rental Agreement.

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  The Terms will be modified by the Addenda (if any)
  attached to this letter the heading of which and the number of pages of
  which are shown in this letter. The Addenda (if any) will apply to each
  Rental Agreement written to the terms of this agreement.

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Each Rental Agreement may be further modified by the
  attachment of any further Addenda specifically referring to that Rental
  Agreement,

  

 

 

If there is conflict between the terms of a particular
Rental Agreement and this letter of understanding the terms of this letter of
understanding shall prevail.

 

The attachments to this letter are:

 

ADDENDUM TO RENTAL AGREEMENT (POST SUMMER BUDGET 1997)

 

ADDENDUM TO RENTAL AGREEMENT (FOR RETURN CONDITIONS)

 

STANDARD CONDITIONS OF SALE

 

 

We may register details of this Agreement and any Schedule to Rental
Agreement made subject to the terms of this Agreement and the conduct of your
account with any licensed credit reference agency.  This and the information you have given may
be used to help make credit decisions, to prevent fraud, for tracing debtors
and for recovering our property.  We may
also disclose this information to any member company of the National
Westminster Bank Plc group of companies, to any company or business associated
with us and to any person acting on our behalf for any purpose connected with
the group’s business.  We, or those
identified above, may also contact you about services which may be of interest
to the you.  You may choose not to be
contacted in this way.

 

	
  Accepted by the Hirer

  	
   

  	
  Accepted by Lombard

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Paul Monaghan

  	
   

  	
  /s/ J. McGill

  	
   

  	
   

  	
  /s/ J. Smith

  	
   

  
	
  Status Authorised
  Signatory

  	
   

  	
  Authorised Signatory

  	
   

  	
  Status

  	
  Authorised Signatory

  	
   

  
	
  Date

  	
  18/8/97

  	
   

  	
  Date

  	
  18/8/97

  	
   

  
								

 

2

 

Terms of each Schedule to the Rental Agreement

 

	
  1.

  	
   

  	
  Definitions

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  In this agreement

  
	
   

  	
   

  	
   

  
	
  1.01

  	
   

  	
  “Agreement
  Date” means the date so called in the Schedule.

  
	
   

  	
   

  	
   

  
	
  1.02

  	
   

  	
  “Equipment”
  means the equipment described in the Schedule and includes each item thereof
  and all component parts, accessories, additions, alterations and replacement
  parts thereto together with all manuals and handbooks.

  
	
   

  	
   

  	
   

  
	
  1.03

  	
   

  	
  “Schedule”
  means the Schedule to this agreement which shall form part of this agreement.

  
	
   

  	
   

  	
   

  
	
  1.04

  	
   

  	
  “Fixed
  Period” means the period so called in the Schedule.

  
	
   

  	
   

  	
   

  
	
  1.05

  	
   

  	
  “Total Loss”
  means any loss, theft, seizure, confiscation or destruction of all (but not
  subject to the provisions of Clause 9 any part or single item only) of the
  Equipment or any damage thereto which in the insurer’s opinion may not be
  economical to repair.

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  The Hiring;
  Rentals; Delivery of the Equipment

  
	
   

  	
   

  	
   

  
	
  2.01

  	
   

  	
  We agree to
  hire and you agree to take on hire the Equipment on the terms of this
  agreement. The hiring will start on the Agreement Date and will continue for
  the Fixed Period and at the rentals shown in the Schedule. It is agreed and
  declared that you shall have no right to terminate the hire earlier than a
  date 3 months from the Agreement Date. If you wish to terminate the hiring
  after that date you will give us one months notice and pay to us the amounts
  calculated in accordance with Clause 9.01.

  
	
   

  	
   

  	
   

  
	
  2.02

  	
   

  	
  You will pay
  us at our address shown in the Schedule at the times stated in the Schedule
  together with value added tax (“VAT”):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)  the
  rentals shown in the Schedule or as adjusted under this agreement;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)  any
  other sums payable under this agreement.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Payments made by post will be at your own risk.
  Punctual payment shall be of the essence of this agreement.

  
	
   

  	
   

  	
   

  
	
  2.03

  	
   

  	
  You will
  accept delivery of the Equipment only if it is satisfactory. If the Equipment
  is unsatisfactory you will notify us immediately by fax. If we do not receive
  a fax from you within 48 hours of delivery it will be conclusively presumed
  that you have accepted the Equipment and that it is completely satisfactory.

  
	
   

  	
   

  	
   

  
	
  2.04

  	
   

  	
  You will
  comply with any reasonable request from us about the application for and
  preservation of any available capital allowances and give us written notice
  immediately of any happening requiring notification to a competent taxation
  authority.

  

 

3

 

	
  3.

  	
   

  	
  Risk, Care,
  Title, Use of Equipment; Indemnity

  
	
   

  	
   

  	
   

  
	
  3.01

  	
   

  	
  You will be
  responsible for any loss, theft, destruction of or damage to the Equipment
  from the date of delivery until it is sold or disposed of.

  
	
   

  	
   

  	
   

  
	
  3.02

  	
   

  	
  You will at
  your own expense keep the Equipment properly serviced, maintained and in good
  repair and operating condition and repair or replace any missing or unfit
  parts with parts of similar manufacturing standards and specification as
  those recommended by the manufacturer of the Equipment and have all servicing
  and maintenance carried out strictly to the standard and strictly at the
  service intervals recommended by such manufacturer or its accredited agent.
  You will maintain or cause to be maintained complete records of all service,
  maintenance and repair to the Equipment. All replacement parts fixed to the
  Equipment will belong to the owner of the Equipment and be subject to the
  terms of this agreement.

  
	
   

  	
   

  	
   

  
	
  3.03

  	
   

  	
  The Equipment
  as between us and you will remain personal and moveable property. You will
  ensure that we or our agent will have a right of access to the Equipment and
  all related records at all reasonable times for inspection and removal and at
  any reasonable time during the month immediately prior to the date of the
  expiry of the Fixed Period shown in the Schedule you will at our request
  demonstrate the Equipment to any potential purchaser and allow them to
  inspect the Equipment and all related records. You will tell us immediately if
  you change your address. You will not take the Equipment outside Great
  Britain without our previous written consent (deemed to be given in respect
  of vehicles for use in Western Europe for no more than 28 days at any one
  time).

  
	
   

  	
   

  	
   

  
	
  3.04

  	
   

  	
  You will use
  all reasonable endeavours to ensure that the Equipment is only used or
  operated by properly skilled and trained personnel in a careful and proper
  manner, only for the purpose for which the Equipment has been designed and in
  strict accordance with any operating instructions issued by the manufacturer
  of the Equipment, any government agency or any statutory authority. You will
  not knowingly use or let anyone use the Equipment illegally.

  
	
   

  	
   

  	
   

  
	
  3.05

  	
   

  	
  You will not
  let anyone obtain any rights over the Equipment or let anyone take or
  threaten to take it to pay any of your debts. You will keep the Equipment in
  your possession and under your control and you will not sell, transfer,
  mortgage, lend, let, sublet (except in accordance with the terms of the
  Subletting Appendix attached to this agreement) or give the Equipment to
  anyone or otherwise part with possession of the Equipment without our
  previous written approval (deemed to be given in respect of temporary use of
  the Equipment by any United Kingdom “holding company” of yours or any United
  Kingdom “subsidiary” of such holding company within the meaning of section
  736 of the Companies Act 1985 on terms that such holding company or
  subsidiary must deliver up possession of the Equipment to us or the owner
  immediately on demand or earlier termination of the hiring under this
  agreement).

  
	
   

  	
   

  	
   

  
	
  3.06

  	
   

  	
  You will not
  knowingly permit or allow the Equipment to be used contrary to law including
  any statute or other rule, regulation or order.

  
	
   

  	
   

  	
   

  
	
  3.07

  	
   

  	
  You will not
  make any alterations to the Equipment without our prior written consent
  unless you are obliged to do so by law. Any additions, upgrades, accessories,
  alterations or replacements will become the property of the owner of the
  Equipment and subject to this agreement.

  

 

4

 

	
  3.08

  	
   

  	
  You will not
  change the usual location of the Equipment from the location shown in the
  Schedule without our written consent.

  
	
   

  	
   

  	
   

  
	
  3.09

  	
   

  	
  You will
  maintain or cause to be maintained in full force and effect all certificates
  licences, registrations, permits and authorisations required by any statutory
  authority at all times during this agreement and to ensure that each of the
  foregoing are in force on termination of this agreement.

  
	
   

  	
   

  	
   

  
	
  3.10

  	
   

  	
  You must:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)  not
  default on the payment of any sum due or commit any other breach under any
  loan, instalment credit, rental, hire or leasing agreement you may have with
  us or our holding company or any of its subsidiaries or any of our
  subsidiaries (as such expressions are defined in section 736 of the Companies
  Act 1985);

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)  not
  do or allow to be done anything which we reasonably believe may put at risk
  the performance of your obligations under this agreement;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)  if
  you are a limited company or a partnership, not cause or allow any change in
  your control (as defined in section 840 of the Income and Corporation Taxes
  Act 1988).

  
	
   

  	
   

  	
   

  
	
  3.11

  	
   

  	
  You will
  indemnify us against any liability or loss (including taxed legal costs)
  arising from the possession or use of the Equipment by you or its ownership
  by the owner or repossession by us.

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Adjustments
  to Rentals

  
	
   

  	
   

  	
   

  
	
  4.01

  	
   

  	
  You
  acknowledge that we have calculated the rentals payable in the Fixed Period
  on the assumptions that:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a) 
  either a first year allowance, or if no rate for this is shown in the
  Schedule, a writing down allowance will be made to the owner on the whole of
  the expenditure incurred on the purchase of the Equipment in the owner’s
  accounting period in which the Agreement Date falls; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)  a
  writing down allowance will be made to the owner on the unrelieved balance of
  that expenditure brought forward in each succeeding accounting period of the
  owner at the rate or rates shown in the Schedule (but if the Equipment is a
  private motor car and the expenditure incurred is more than £12,000 excluding
  VAT where appropriate any writing down allowance made to the owner will be
  restricted to £3,000); and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)  no
  such first year allowance or writing down allowance, having been made shall
  be withdrawn or the benefit of it reduced or limited in any way whatsoever.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d) 
  there will be no change in the nature, method or application of relevant
  taxation in the United Kingdom.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (e)  If
  it states in the Schedule that this assumption applies, Corporation Tax is
  and will continue to be chargeable at the rate shown in the Schedule.

  

 

5

 

	
  4.02

  	
   

  	
  If any of the
  assumptions referred to in Clauses 4.01(a) to (d) is incorrect
  other than by reason of any Schedule to the Rental Agreement not being
  regarded as an Operating Lease by us then if you or we require, each rental
  remaining to be paid in the Fixed Period will be adjusted to the amount which
  we certify to you is the correct amount necessary to preserve our after tax
  rate of return. If the last rental payable in the Fixed Period has already
  been paid you will pay on request an additional rental or we will pay as soon
  as practicable a rebate of rentals, in either case with VAT where appropriate,
  of an amount certified on the same basis as above. Any amount certified will
  be final and binding on you. Rentals will not be reduced or a rebate of
  rentals paid to reflect any capital allowances (including writing-down
  allowances) becoming available to us in respect of the Equipment in addition
  to or greater than those referred to in Clause 4.01(a) or at any earlier
  time unless the additional or greater allowances are actually received and
  can be used by us.

  
	
   

  	
   

  	
   

  
	
  4.03

  	
   

  	
  if the
  assumption referred to in Clause 4.01(e) is incorrect then if you or we
  require, you will pay to us or vice versa as appropriate an additional
  payment. This is calculated by multiplying the total of the Fixed Period
  rentals by the percentage shown in the Schedule below the financial year for
  which the change takes place and by multiplying the result by the change in
  the percentage rate of Corporation Tax. The change in the percentage rate
  will be a negative figure if Corporation Tax reduces and a positive figure if
  Corporation Tax increases. If the additional payment is negative, we will pay
  it to you exclusive of VAT. If it is positive, you will pay it to us with VAT
  added. If the additional payment is less than £50, it will be ignored.

  
	
   

  	
   

  	
   

  
	
  4.04

  	
   

  	
  If you are of
  the opinion that any certificate issued by us relating to any adjustment in
  the rentals or any claim on you for payments other than rentals contains an
  error we and you shall consult to resolve the dispute but, if we and you
  cannot agree, we shall refer the certificate and the calculation to our
  external auditors who, acting as experts and not arbitrators, shall confirm
  the correctness or otherwise of any such calculation and certificate. The
  costs of such referral shall be borne by you unless the auditors advise that
  the total adjustment should vary by more than the greater of £500 or 0.25% of
  the Equipment Cost (excluding Value Added Tax) in which event the costs shall
  be borne by us;

  
	
   

  	
   

  	
   

  
	
  4.05

  	
   

  	
  For the
  purposes of Clause 4.02 you shall not be liable for any adjustment to the
  rentals if the event that gives rise to such adjustment is the result of our
  or the owner or the group of companies of which the owner is a member not
  having sufficient taxable profits to absorb any available capital allowances
  or we or the owner fairing to properly claim any available capital
  allowances;

  
	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Insurance and
  Damage

  
	
   

  	
   

  	
   

  
	
  5.01

  	
   

  	
  You will
  insure the Equipment under your normal form of insurance and undertake:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)  to
  maintain insurance cover against damage or injury to third parties and to
  maintain such insurance over the Equipment as is required by Law; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)  to
  indemnify us and to keep us indemnified at all times against all loss or
  damage incurred or sustained by us by reason of any damage to the Equipment
  and to third parties by the use, operation or presence of the Equipment.

  

 

6

 

	
  6.

  	
   

  	
  Total Loss
  and Termination

  
	
   

  	
   

  	
   

  
	
  6.01

  	
   

  	
  If there is a
  Total Loss you will tell us immediately and we and you agree that this
  agreement will terminate automatically (but if only one or more items of the
  Equipment and not all the Equipment suffers such Total Loss then this
  agreement will terminate only in relation to the item or items suffering such
  Total Loss) and you will immediately pay to us the amounts due on termination
  for Total Loss in respect of such Equipment under Clause 9. If there is a
  Total loss of some of the Equipment only then subject to you making a payment
  of such amount due under Clause 9 as we shall certify to you is attributable
  to those items of the Equipment that have been the subject of a Total Loss
  the rentals remaining to be paid by you in respect of the remaining Equipment
  shall be reduced by such amount as we certify to you to take account thereof.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Any certificate of the amount payable by you under
  the provisions of Clause 9 or rentals remaining to be paid following a Total
  Loss of other than all of the Equipment shall take account of the value of
  the Equipment and any residual value we have assumed of those items the
  subject of the Total Loss and those items remaining following such Total Loss
  and, save for manifest error, the amounts certified shall be final and
  binding.

  
	
   

  	
   

  	
   

  
	
  6.02

  	
   

  	
  If there is a
  Total Loss you will use your best endeavours to ensure prompt payment of any
  insurance proceeds to us.

  
	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Repudiation

  
	
   

  	
   

  	
   

  
	
  7.01

  	
   

  	
  You will be
  treated as having repudiated this agreement if you:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a) 
  fail for more than 28 days to pay any rental or other sum due under this
  agreement; or

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b) 
  breach Clause 3.04, 3.05 or 3.10; or

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c) 
  fail for more than 10 days after a request from us to remedy any other breach
  of this agreement.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d) 
  abandon the Equipment or do anything which in our opinion based on reasonable
  grounds might jeopardise our rights over the Equipment.

  
	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Default;
  Bankruptcy and Termination

  
	
   

  	
   

  	
   

  
	
  8.01

  	
   

  	
  This
  agreement and the hiring:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a) 
  will terminate automatically and we may repossess the Equipment at any time
  if you:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i) 
  have a petition for a bankruptcy order presented against you or an
  application is made against you for an interim order under the Insolvency Act
  1986;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii) 
  convene a meeting of or come to any arrangement with creditors;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii) 
  have a receiving order made against you;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iv) 
  allow anyone to seize or threaten to seize any of your property to meet your
  debts;

  

 

7

 

	
   

  	
   

  	
  (v)  are
  a limited company and have a petition for a winding up order or a petition
  for an administration order presented against you, pass a resolution for
  voluntary winding up (save for the purpose of a bona fide solvent
  amalgamation or reconstruction) or have a receiver or administrative receiver
  appointed;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)  may
  be terminated by us at any time by repossessing the Equipment or in any other
  way if you repudiate this agreement.

  
	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Payments on
  Termination

  
	
   

  	
   

  	
   

  
	
  9.01

  	
   

  	
  On any
  termination (including Total Loss) of this agreement earlier than the date of
  expiry of the full Fixed Period of this agreement shown in the Schedule (but
  in the case of a Total Loss of other than all of the Equipment such
  proportion of the sums calculated in accordance with this clause as we shall
  certify to you under the provisions of Clause 6.01) you will immediately pay
  us, together with VAT, the aggregate of:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)  all
  arrears of rentals and other sums due under this agreement together with
  interest thereon calculated at the same rate as that stated in Clause 14.02;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)  as
  compensation for our full financial loss a sum calculated as follows:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)  all
  rentals which would but for termination of this agreement have become due and
  payable from the date of such termination down to the end of the full Fixed
  Period;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii) 
  such sum (if any) as we shall certify to you to be the difference between:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (aa) the net proceeds of sale of the Equipment which
  we would expect to have become due to us from the buyer on completion of the
  sale of the Equipment by us following expiry of the fur Fixed Period if this
  agreement had continued for the full Fixed Period and you had strictly
  observed and performed all the terms and conditions of this agreement; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (bb) the net proceeds of sale of the Equipment
  actually realised by us on the sale of the Equipment by us following the said
  early termination of this agreement which shall, if (aa) exceeds (bb) be
  payable by you in addition to the sum referred to in sub-clause
  (b)(i) above or, if (bb) exceeds (aa), be deducted from the said sum;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii) 
  we will allow a discount for accelerated payment on each rental or other sum
  received by us under this sub-clause (b) so that the amount payable
  shall be such amount as we shall certify to be the correct amount necessary
  to preserve the our rate of return on the after tax cashflow of the Schedule
  to the Rental Agreement and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)  our
  reasonable costs:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)  in
  relation to the said early termination and of repossession, storage,
  insurance and disposal of the Equipment;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)  of
  servicing, providing replacement parts and carrying out repairs which are
  needed to put the Equipment in good condition following its return or
  repossession; or

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii) 
  resulting from any accidental, deliberate or negligent damage to the
  Equipment:

  

 

8

 

	
   

  	
   

  	
  (d) 
  where the event giving rise to the termination is a Total Loss, the insurance
  proceeds received by us will be deemed to be the sale proceeds for the
  purpose of calculating the amounts due on termination for Total Loss.

  
	
   

  	
   

  	
   

  
	
  9.02

  	
   

  	
  Any
  certification of a sum or amount made by us pursuant to Clause 9.01 above
  will be conclusive and binding on you, save in respect of manifest error.

  
	
   

  	
   

  	
   

  
	
  9.03

  	
   

  	
  Your
  obligations under Clause 9.01 will be treated as if they had arisen
  immediately before and not after termination.

  
	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  End of Fixed
  Period; Extension of Rental and Return of Equipment

  
	
   

  	
   

  	
   

  
	
  10.01

  	
   

  	
  Unless
  terminated under Clause 8.01 this agreement will terminate automatically on
  expiration of the Fixed Period shown in the Schedule and you will return the
  Equipment to us as required by Clause 10.03. If we do not require you to
  provide storage in accordance with Clause 10.04 or any agreed storage
  arrangements have come to an end and you fail to return the Equipment to us
  on time you will pay to us, together with VAT thereon, an additional rental
  charge for each day from the date of termination of this agreement to the
  date on which the Equipment is returned to us as required by
  Clause 10.03. The said rental charge will be calculated by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a) 
  adding together all the rentals paid and payable during the Fixed Period; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b) 
  multiplying the resulting figure by 150%; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c) 
  dividing the resulting figure by the number of days which comprise the Fixed
  Period and for the purpose of this calculation a year shall be deemed to
  comprise 360 days and a month shall be deemed to comprise 30 days.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Such additional rental
  shall be due on demand.

  
	
   

  	
   

  	
   

  
	
  10.02

  	
   

  	
  If you wish
  to use the Equipment after expiry of the Fixed Period you must write to us at
  least one month before the date of expiry of the Fixed Period to request
  this. We will be under no obligation to agree to your request although we
  will notify you of our decision as soon as possible.

  
	
   

  	
   

  	
   

  
	
  10.03

  	
   

  	
  Immediately
  after termination of the hiring you will return the Equipment to us at any
  place within the United Kingdom which we may reasonably require. All
  decommissioning, transportation, handling and storage costs are to be borne
  by you and you will insure the Equipment whilst in transit on the terms set
  out in Clause 5. The Equipment must be returned in the same original,
  complete working condition that it was in when originally supplied new and in
  particular (but without limitation), in a condition and manner which complies
  with the requirements set out in the “Addendum to Rental Agreement (for
  return conditions)” attached to this agreement.

  
	
   

  	
   

  	
   

  
	
  10.04

  	
   

  	
  If we shall
  so require you will provide free and secure storage and insurance (on the
  terms set out in Clause 5) for the Equipment for a period not exceeding 180
  days after termination of the hiring under this agreement. You will not use
  or allow anyone else to use the Equipment during this period. During this
  period the Equipment must remain totally operational and you shall provide
  adequate electrical power, lighting, heat, water and any other relevant
  utility facilities. During the storage period you will permit us or any 

  

 

9

 

	
   

  	
   

  	
  persons
  designated by us, including the representatives of any prospective purchaser
  of the Equipment, to inspect the Equipment and the records maintained
  therewith. If requested to do so you will demonstrate the Equipment to any
  prospective purchaser. If an auction of the Equipment is necessary, we shall
  be permitted to auction the Equipment on-site and in situ at a time
  reasonable to us and you.

  
	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Manufacturer’s
  or Supplier’s Warranties and Exclusion of Liability

  
	
   

  	
   

  	
   

  
	
  11.01

  	
   

  	
  If you do not
  obtain direct from the manufacturer or supplier express warranties about the
  Equipment we will at your request and cost and on our terms transfer to you
  so far as possible the benefit of any manufacturer’s or supplier’s express
  warranties of fitness and performance of the Equipment given to us.

  
	
   

  	
   

  	
   

  
	
  11.02

  	
   

  	
  (a)  EXCEPT
  AS MENTIONED IN SUB-CLAUSE (b) BELOW, SINCE THE EQUIPMENT HAS BEEN
  CHOSEN BY YOU AND HAS NOT BEEN INSPECTED BY US, WE DO NOT MAKE OR GIVE ANY
  REPRESENTATION OR UNDERTAKING EXPRESS OR IMPLIED AS TO THE CONDITION,
  DESCRIPTION, QUALITY OR PERFORMANCE OF THE EQUIPMENT OR AS TO ITS FITNESS FOR
  ANY OR ANY PARTICULAR PURPOSE, ALL SUCH REPRESENTATIONS AND UNDERTAKINGS ARE
  SPECIFICALLY EXCLUDED.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)  NO
  LIABILITY (EXCEPT FOR DEATH OR PERSONAL INJURY RESULTING FROM OUR NEGLIGENCE)
  WILL ATTACH TO US IN CONTRACT OR IN TORT. FOR LOSS, INJURY OR DAMAGE
  SUSTAINED BY ANY REASON OF ANY DEFECT IN THE EQUIPMENT WHETHER LATENT OR
  APPARENT AND HOWEVER CAUSED.

  
	
   

  	
   

  	
   

  
	
  11.03

  	
   

  	
  We will not
  be obliged to supply any replacement for the Equipment and will not be liable
  for any loss including loss of earnings or profits suffered by you if the
  Equipment is or becomes unusable.

  
	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Sales Agency

  
	
   

  	
   

  	
   

  
	
  12.01

  	
   

  	
  Up until a
  date three months after the expiry of the Fixed Period (or such later date as
  we shall notify you provided you have made the payment to us as required in
  Clause 12.07) or the date of any earlier termination of the hiring under this
  agreement but not otherwise; you will use your best endeavours to sell the
  Equipment for the highest value possible acting as our agent within the three
  months ending with such expiry or termination. If you have not sold the
  Equipment within the said three months then you will return the Equipment to
  us or otherwise deal with the Equipment (as we may require) in accordance
  with Clause 10 of this agreement.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)  in
  the event of a termination of the hiring under this agreement pursuant to
  Clause 8.01, if we are in possession of the Equipment we shall try and sell
  it, or if you are still in possession of the Equipment we may at our option
  require you use your best endeavours to sell the Equipment for the highest
  value possible within an agency period specified by us.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)  the
  sale of the Equipment by you shall be in your own name, either to a buyer who
  requires the Equipment for business use who is not a direct or indirect
  subsidiary of The Hertz Corporation or any sub-lessee of the Equipment and
  who is willing and able to buy the Equipment for cash for at least its fair
  market value in which case the sale will comply 

  

 

10

 

	
   

  	
   

  	
  with our
  applicable Standard Conditions of Sale, a copy of the current form is
  attached hereto (or such other conditions as we may advise in writing), or at
  a public auction.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)  the
  sale will be for a price greater than the Minimum Sale Price shown in the
  Schedule to the Rental Agreement exclusive of VAT where appropriate or such
  other minimum sale price as we may advise you in writing from time to time,
  or for such lesser price without our prior written permission, provided that
  you make good the shortfall.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d)  it
  is agreed and acknowledged that we may at our sole option advise you in
  writing of a change in the Minimum Sale Price for the Equipment from time to
  time and on receipt of such notice you may at your option return the
  Equipment to us at the expiry of the Fixed Period and you will no longer act
  as our agent for the sale of the Equipment.

  
	
   

  	
   

  	
   

  
	
  12.02

  	
   

  	
  At our
  request, you will provide us with copies of your VAT invoice or invoices to
  the purchaser or copies of the sales invoice from the auctioneer as
  appropriate. We shall issue you with an invoice for the sale price of the
  Equipment plus VAT (if applicable) or you will raise a Self-Billed Invoice
  upon us should you be approved by H M Customs and Excise to do so and where
  the Equipment is a motor car, such invoice must be issued no later than the
  last working day of the month in which you sell the motor car as our agent
  and must be sent to us so that we receive it within 5 working days of that month
  end.

  
	
   

  	
   

  	
   

  
	
  12.03

  	
   

  	
  if in the
  case of termination under Clauses 2.01, 6.01 or 8.01 of this agreement you
  have complied with Clause 9.01 or you have paid us any sums due under the
  provisions of 12.07 we will pay to you a Rebate of Rentals which is the amount
  by which the proceeds of sale exceeds the Minimum Sale Price shown in the
  Schedule to the Rental Agreement but, in the case of a payment under the
  provisions of Clause 12.07 the Minimum Sale Price shall be deemed to be zero.

  
	
   

  	
   

  	
   

  
	
  12.04

  	
   

  	
  The net proceeds
  of sale of the Equipment will be as defined in Clause 14.13 of this
  agreement.

  
	
   

  	
   

  	
   

  
	
  12.05

  	
   

  	
  Your
  obligations under Clauses 10.01, 10.02 and 10.04 of this agreement will
  commence on the expiry of this agency for sale or our earlier termination of
  such agency.

  
	
   

  	
   

  	
   

  
	
  12.06

  	
   

  	
  If during any
  period of three consecutive months ending on the 31 March, 30 June,
  30 September and 31 December in any year the Net Proceeds of
  Sale of Equipment sold by you under the provisions of this Clause should fall
  short of the Minimum Sale Price you will, at the end of such period,
  immediately pay to us a sum equal to the amount by which the Net Proceeds of
  Sale of such Equipment falls short of the Minimum Sale Price provided that
  the aggregate of such shortfalls paid to us shall be limited to the aggregate
  of the Rebates of Rentals paid in respect of each and every item of Equipment
  sold by you under this Clause in such period;

  
	
   

  	
   

  	
   

  
	
  12.07

  	
   

  	
  (a)  In
  order that you shall not be regarded as in breach of the terms of the
  Schedule to the Rental Agreement you will pay to us on the date shown in the
  Schedule to the Rental Agreement as the Payment Date on account of the actual
  Sales Proceeds of an Equipment Account Monies equivalent to the Minimum Sale
  Price which we shall not be obligated to repay under any circumstances. The
  payment of these Account Monies shall be in addition to any rental or other
  payment properly payable to us.

  

 

11

 

(b)  You undertake, promptly on disposal of each item
of the Equipment, but in any event no later than 10 days after the end of the
calendar month following the disposal of each item of the Equipment to account
to us in full for the actual Sales Proceeds of an item of the Equipment and
shall be entitled to deduct from the actual Sales Proceeds any Account Monies
paid in respect of the relevant item of the Equipment.

 

(c)  If you have paid such Account Monies to us then,
provided all of the Equipment on the Schedule to the Rental Agreement is sold
on or before the first anniversary of the year end of us following the
Agreement Date of the Schedule to the Rental Agreement (as advised by us if so
required by you) there shall be no additional Fixed Period Rental under the
Schedule to the Rental Agreement payable by you and those Account Monies shall
be regarded as the rental applicable from the date of payment until the date
the Equipment is disposed of.

 

(d)  If you have not disposed of an item of the
Equipment on or before the first anniversary of the year end of us following
the Agreement Date of the Schedule to the Rental Agreement (as advised by us if
so required by you) you shall pay to us, if demanded by us, on the next day an
additional Fixed Period Rental of the amount specified in the Schedule
multiplied by the Expenditure Incurred as advised by us and divided by
1000.  We will make such a demand only in
respect of that Equipment that has not been sold prior to this date.

 

(e)  We are willing to aggregate the Actual Sales
Proceeds used in the calculation of the additional Fixed Period Rental pursuant
to Clause 13 and, as such, we will perform the calculations at the end of the
calendar quarter in which the first anniversary of the Agreement Date falls in respect
of all Equipment sold prior to that time and not previously the subject of the
calculation of the Additional Fixed Rental pursuant to Clause 13, and at the
end of each calendar quarter thereafter until all of the Equipment the subject
of a Schedule to Rental Agreement is sold, Such aggregation shall only include
those Schedules to Rental Agreements which have Agreement Dates in the same
calendar quarter.

 

13.01                     The rentals
shown in the Schedule to the Rental Agreement payable during the Fixed Period
of the Schedule to the Rental Agreement are, in addition to the provisions of
Clause 4, calculated on the assumption that the Disposal Value will not be less
than the Assumed Percentage as at the date of the sale or other disposal of the
Equipment after termination of the Schedule to the Rental Agreement.

 

13.02                     If the
assumption referred to in 13.01 is incorrect you will within seven days of
receipt of written demand made by us shall pay to us an additional Fixed Period
rental (with V.A.T ) of an amount calculated by working the following formula:

 

Amount of the additional Fixed Period rental  = 

 

13.03                     The contents of
a written demand made by us pursuant to 13.02 shall, save for manifest error,
be final and binding on you and your obligation to pay the additional rental so
demanded shall survive termination of the Schedule to the Rental Agreement.

 

12

 

13.04                     For
the purposes of this Clause

 

(i)  “Expenditure Incurred” (or “El”) means the amount
of the expenditure incurred by the owner of the Equipment on purchase of the
Equipment.

 

(ii)  “Disposal Value” means the disposal value to be
brought into account by the owner of the Equipment following the sale or other
disposal of the Equipment after termination of the Schedule to the Rental
Agreement.

 

(iii)  “Assumed Percentage” (or “AP”) means at the date
of the demand made by us, the figure, expressed as a number, shown in the
Schedule to Rental Agreement next to the number of complete months expired
since the Agreement Date of the Schedule to the Rental Agreement.

 

(iv)  “Adjusted Amount” (or “AA”) means at the date of
the demand made by us the amount shown in the Schedule to Rental Agreement next
to the number of complete months expired since the Agreement Date of the
Schedule to the Rental Agreement.

 

(v)  “Actual Percentage” (or “AcP”) means the figure
expressed as a number, ascertained by d viding the Disposal Value by the
Expenditure Incurred and multiplying the result by one hundred.

 

14.          General

 

14.01                     You confirm
that the information provided by you and shown in the Schedule is true and you
acknowledge and agree that such information will be treated as if it were terms
of this agreement.

 

14.02                     If you fail to
pay any sum due on time we will charge you daily interest on that sum at the
rate Finance House Base Rate from time to time for the first 10 days of non
payment and thereafter at Finance House Base Rate plus 5%.  Interest will be charged from the date for
payment until actual payment.  This
provision will apply both before and after any court judgement we may obtain
against you and will survive and apply after termination.

 

14.03                     If you incur
any liability (whether liquidated or unliquidated) to us or our holding company
or any of our subsidiaries (as such expressions are defined in section 736 of the
Companies Act 1985) we may set off such liability against any sum that would
otherwise be due to you under the agreement.

 

14.04                     Any notice
required under this agreement will be properly served only if in writing and
sent by fax or prepaid letter post or delivered by hand to the addressee’s
address shown in the Schedule or the last known address of the addressee.  Notice will be effective at the time of
sending if sent by telex, 72 hours after posting if sent by prepaid letter post
and at the time of delivery if delivered by hand.

 

14.05                     If you are more
than one person your obligations will be binding on each person separately and
all persons jointly.

 

14.06                     Our rights
under this agreement will not be affected by any forbearance or concession made
by us to you.

 

13

 

14.07                     In negotiations
for this agreement only persons expressly authorised in writing by us have had
authority to act as our agent.

 

14.08                     This agreement
contains all the terms agreed between us except variations recorded in writing
and signed by our authorised employee and you.

 

14.09                     You will not
assign this agreement.

 

14.10                     For the
purposes of UK taxation and irrespective of the accounting treatment adopted by
you, you are not entitled to claim capital allowances on the Equipment.

 

14.11                     Your obligation
to indemnify us under Clause 3.11 to pay us interest under Clause 14.02 and to
Day us an additional rental or payment under Clause 4.02, 4.03 or 10.01 will
not be affected by any termination of this agreement.

 

14.12                     You will pay us
on demand our charges for changing the terms of this agreement or providing
additional services at your request and for reminding you about or dealing with
any failure by you to comply with the terms of this agreement.  Details of our charges are available on
request and will be notified to you in any event before you are charged.

 

14.13                     For the purpose
of Clause 9.01 the net proceeds of sale of the Equipment will be the proceeds
from selling the Equipment after deducting VAT, any costs of repossession,
repair, storage.  insurance, sale and
delivery to the buyer, and any other costs incurred.

 

14.14                     As an
intermediary with the European investment Bank (“EIB”) we may be able to obtain
partial funding from the EIB in respect of this agreement, whereupon clause
14.15 will apply.

 

14.15                     If partial
funding from the EIB is obtained in accordance with clause 14.14, you
irrevocably agree to European investment Bank personnel (accompanied by our
representatives) visiting the location of the Equipment from time to time and
upon reasonable prior notice being given in order to appraise themselves of the
general nature of the transaction and the use of the Equipment.

 

14.16                     Reference in
this agreement to a statutory enactment is deemed to be a reference to any
re-enactment thereof in force for the time being.

 

14.17                     You will
respect national and EC regulations with regard to protection of the
environment at the location in which the Equipment is situated.

 

14.18                     You must not be
a party in any legal proceedings brought by the EC Commission.

 

14.19                     This agreement
will also incorporate the terms of any Addenda signed by you and us.

 

14

 

ADDENDUM TO RENTAL AGREEMENT (POST SUMMER

BUDGET 1997)

Short Term Car Hire - Interim Only

 

	
  By this addendum dated

  	
   

  	
   

  
	
   

  	
   

  
	
  Lombard

  	
   

  	
   

  	
  (“the Lessor”)

  
	
   

  	
   

  	
   

  
	
  and

  	
   

  	
  HERTZ (UK) LTD

  	
   

  	
  (“the Hirer”)

  
	
   

  	
   

  	
   

  
	
  agree that the terms of the Rental Agreement
  numbered

  	
   

  	
   

  	
  (“the Rental Agreement”)

  
	
   

  
	
  are modified as set out below:

  
											

 

1.                                       There shall be deemed deleted from the
terms of the Rental Agreement the whole of Clause 4.01(a)

 

2.                                       There shall be deemed included in the
terms of the Rental Agreement in place of the said Clause 4(a) the
following new Clause 4.01(a):

 

“either a first year allowance, or if no rate for this is shown in the
Schedule, a writing down allowance will be made to the owner on the whole of
the expenditure incurred on the purchase of the Equipment in the owner’s
accounting period in which the Agreement Date falls in accordance with the
terms of Inland Revenue 7 “Tax Leakage” press release dated 2nd July 1997
at the rate or rates shown overleaf; and”.

 

 

15

 

Lombard NorthCentral PLC

 

Standard Conditions of
Sale

 

Part 1 - Consumer Sales

 

1.                                       Nothing
in these conditions of sale affects either the statutory rights of the Buyer in
respect of the Equipment or the Seller’s liability for death or personal injury
to the Buyer resulting from the Seller’s negligence.

 

2.                                       Title
to the Equipment shall pass to the Buyer upon payment to the Seller of the
purchase price, but if payment is made by cheque title shall not pass to the
Buyer until the cheque has been honoured.

 

3.                                       If
before the sale the Equipment have been supplied by the Seller to a lessee (“the
Lessee”) under a leasing agreement the Buyer warrants (and it is a condition of
any sale to him) that the Buyer is not the Lessee or an agent, trustee or
nominee of the Lessee, or an associate of, or a person connected with, the
Lessee nor will the Buyer subsequently sell the Equipment to any such person or
to the Lessee.

 

4.                                       The
Buyer will at the Buyer’s cost remove the Equipment, wherever located, within
14 days of the sale.

 

5.                                       English
law is the law applicable to the sale.

 

6.                                       The
foregoing conditions contain all the terms agreed except any written variations
signed by an authorised signatory of the Seller and the Buyer.

 

Part 2 - Business Sales

 

1.                                       The
Buyer warrants that the Equipment are being purchased in the course of the
Buyer’s business.

 

2.                                       The
Equipment are not sold with the benefit of or subject to any condition or
warranty express or implied by statute or otherwise.

 

3.                                       The
Buyer shall indemnify the Seller on a full indemnity basis against any
liability (other than liability for death or personal injury resulting from the
negligence of the Seller) or loss (including legal costs) arising at any time
from the sale of the Equipment.  The
Buyer agrees that where the Equipment is vehicles the Buyer will not use the
Equipment on a road in Great Britain in such a condition that their use in that
condition would be unlawful.

 

4.                                       Title
to the Equipment shall pass to the Buyer upon payment to the Seller of the
purchase price, but if payment is made by cheque title shall not pass to the
Buyer until the cheque has been honoured.

 

5.                                       If
before the sale the Equipment has been supplied by the Seller to a lessee (“the
Lessee”) under a leasing agreement the Buyer warrants (and it is a condition of
any sale to him) that the Buyer is not the Lessee or an agent, trustee or
nominee of the Lessee, or an associated company or an associate of, or a person
connected with, the Lessee nor will the Buyer subsequently sell the Equipment
to any such person or to the Lessee.

 

16

 

6.                                       In
the negotiations for the sale no third party not expressly authorised in
writing by the Seller has any authority to act as the Seller’s agent.

 

7.                                       If
requested by the Seller the Buyer will give an undertaking in such form as the
Seller shall require about the location and use of the Equipment to enable the
Seller to comply with any undertaking required of it by any Governmental or
other authority.

 

8.                                       The
Buyer will at the Buyer’s cost remove the Equipment, wherever located, within
14 days of the sale and indemnifies the Seller against any resultant damage
caused to third parties.

 

9.                                       English
law is the law applicable to the sale.

 

10.                                 The
foregoing conditions contain all the terms agreed except any written variations
signed by an authorised signatory of the Seller and the Buyer.

 

Addendum to Rental Agreement (for return conditions)

 

the following shall be the conditions for the return
of the Equipment as referred to in clause 10.03 of the Agreement:

 

1.  General

 

a)      Non Compliance with these Return
Conditions

 

i)                                        If
when returned the Equipment does not satisfy the conditions set out herein, we
shall be entitled to have any necessary restoration work carried out and you
agree to pay all costs, charges and fees that may relate to that restoration.

 

b)      Overall condition

 

i)                                        The
Equipment must be returned thoroughly valeted and in good repair and condition
allowing for fair wear and tear.

 

c)      Servicing and documentation

 

i)                                        The
Equipment instruction book, full service record, maintenance agreements,
current certificates, licences, registrations, permits and authorisations
required by any United Kingdom or European Community statutory authority and
any other documents relating to the Equipment ore your responsibility and must
be intact and available.  All documents
must be in the Equipment on its return including any details of radio codes.

 

ii)                                     The
Equipment shall comply with all legal requirements required by any United
Kingdom or European Community statutory authority and be fit for use on the
roads of Great Britain and shall have a current valid Ministry of Transport
Test Certificate appropriate for the class of Equipment with a minimum of six
months until expiry.

 

17

 

d)      Additional equipment

 

i)                                        If
accessories such as telephones, radios or other non-standard equipment have
been installed and then removed, any holes or damage should be made good to a
professional standard.  Aerials must be
left in place or the hole repaired.

 

ii)                                     All
standard equipment including any tools and spare wheel (or replacements) as
originally equipped must also be returned secured properly.

 

e)      Badges and labels

 

i)                                        Non-standard
badges, labels decals, or advertising fitted to the bodywork or glass of the
Equipment must be removed, with any damage caused by their attachment or
removal made good.  Any paint work colour
fade due to the attachment of advertising will be chargeable to you.  Signwriting must never be painted directly
onto the Equipment.

 

f)       Keys and security

 

i)                                        If
the Equipment was originally supplied with a security system, this must be
intact and fully operational.

 

ii)                                     Any
additional security system must be fitted according to a recognised standard,
i.e.  the Vehicle Security installation
Board (VSIB).

 

iii)                                  The
following security equipment must be returned with the Equipment:

 

a)                                      A full set of keys including appropriate
fully functional key fobs, if the locking system is remote.

 

b)                                     A note of all key numbers.

 

c)                                      Any master key which controls the engine management
system of the Equipment.

 

2.  Exterior

 

a)      Body damage

 

i)                                        Any
damage must be repaired as and when it occurs All work must be completed to a
professional standard, ensuring that any applicable anti-corrosion guarantees
are not invalidated.  Obvious evidence of
repair such as colour, mismatch or misalignment between panels is unacceptable.

 

b)      Dents

 

i)                                        Minor
dents (up to 10 mm long) are acceptable provided the paint surface has not been
penetrated so that bare metal is visible or corrosion has set in.  If multiple dents occur on a single panel, no
matter how small, the panel should be repaired or replaced.

 

18

 

c)      Paintwork

 

i)                                        Small
areas of stone chipping, door edge chipping and light scratches (up to 25 mm
long) are acceptable, relative to the age and mileage of the Equipment, as long
as they have not penetrated through to the base metal and caused
corrosion.  If stone chippings have
penetrated through the metal, suitable touching up should be carried out
immediately to prevent further paint deterioration, Exterior paintwork should
be free from major abrasions (more than 25 mm long) and have good gloss and
colour.  Colour mismatch between panels,
or poorly fitting panels, are unacceptable. 
All repairs to the body work must be suitably re-rust proofed to the
manufacturers recommended standards.

 

d)      Bumper sections and rubbing strips

 

i)                                        Provided
these are not broken, cracked or deformed a limited amount of scuffing and
score marks is acceptable.

 

e)      Window and mirror glass

 

i)                                        Cracks
or damage to the windscreen within the driver’s sight line are not acceptable
and you must replace the windscreen or, if relatively minor, repair using resin
impregnation to M.O.T. standards.  Light
scratches and minor chipping around the periphery of the windscreen is accepted
as fair wear and tear.

 

ii)                                     Ali
other windows and mirrors, which are defaced, cracked, damaged, broken or
missing must be replaced.

 

f)       Lamp glasses/lens

 

i)                                        All
lamps including service lamps must operate correctly.  Minor scuff marks or scratches are
acceptable, but holes or cracks in the glass or plastic covers are not and must
he replaced.

 

3.  Interior

 

a)      Interior trim

 

i)                                        The
interior should be clean and tidy with no visible burns, tears or permanent
staining to the seats, headlining or carpets. 
Wear and soiling through normal use is accepted, as are any repairs that
are not readily visible.

 

b)      Luggage area

 

i)                                        Surface
scoring and light blemishes that reflect normal use are acceptable, but floor
coverings and surrounding trim panels should not be torn or split.

 

c)      Car derived vans

 

i)                                        For
car derived vans it is recommended that you fit at your cost a lining in the
load area to prevent serious damage to panels and doors of the Equipment.

 

19

 

d)      Door aperture tread area

 

i)                                        A
reasonable amount of scuffing to the door and luggage area treads and sills is
acceptable provided paintwork has not been damaged down to bare metal and
aperture seals are not torn.

 

e)      Controls

 

i)                                        All
original controls must be intact and operate correctly.  If replacement has been necessary, e.g.  due to theft, then equipment of a similar
value and specification, preferably of the same manufacture as the original,
should have been fitted.

 

f)       Rubber seals

 

i)                                        If
a seal becomes displaced it should be refitted immediately to avoid it becoming
trapped or torn and any evidence of neglect or abuse is unacceptable.

 

4.  Underside

 

a)      Underside

 

i)                                        Minor
dents and deformation, such as stones damage, is acceptable as long as it has
not caused major corrosion.  Any
suspected impact damage should be investigated and dealt with professionally,
as significant damage or distortion to chassis components is not acceptable.

 

b)      Exhaust system

 

i)                                        The
system should be properly suspended and in efficient working order, with no gas
leaks or evidence of blowing from the exhaust system joints and in an undamaged
condition.  The exhaust system should be
in a condition to meet the MOT requirements in all aspects, particularly if
fitted with a catalytic converter (CAT). 
CAT failure is unacceptable and preventable through:

 

a)                                      using the correct fuel

 

b)                                     regular servicing and maintenance

 

c)                                      immediately investigating any poor
running symptoms

 

d)                                     towing or bump starting the Equipment

 

c)      Oil leaks

 

i)                                        Any
serious oil leakage should be rectified at the earliest opportunity.  Some minor oil misting or dampness around
seals or gaskets is acceptable, provided oil drips are not present.

 

20

 

d)      Wheels and wheel trims

 

i)                                        Dents
or damage to the rim or main body of the wheels are not acceptable.  All wheel trims must be intact, with no more
than minor scuffing due to everyday use. 
If mudflaps are standard equipment they must all be intact and properly
attached.  The spare wheel, jack and
appropriate wheel tools must be stowed properly and be in good working order.

 

e)      Tyre wear and damage

 

i)                                        All
tyres, including the spare, must be in a legal condition and comply with the
Equipment manufacturer’s recommendations of tyre type, size and speed rating
and shall bare no less than 3 mm of the original tyre tread depth remaining
across the tread width.  There should be
no obvious damage to sidewalls or tread caused by ‘kerbing’ or other heavy
abuse.

 

5.  Mechanical Condition

 

a)      Servicing

 

i)                                        The
following examples are conditions usually caused by neglect or abuse and
therefore are not regarded as fair wear and tear:

 

a)                                      Brakes: Grooved brake discs caused by
metal to metal contact.

 

b)                                     Engine: Seized due to running with
insufficient coolant, lubricating oil or with broken internal components.

 

c)                                      Transmission: Slipping, erratic gear
changing, clutch slipping, noisy transmission or ineffective synchromesh.

 

b)      Batteries

 

i)                                        All
batteries must be maintained in a clean condition and must be capable of
holding a full charge for at least 24 hours so as to enable any engine to be
started from cold.  It must be sound by
industry standards with no dead cells. 
cracked or leaking casings or evidence of corrosion and must be
correctly filled with a proper electrolyte solution.

 

21

 

SUBLETTING APPENDIX

 

The following are the terms under which we agree that
Sub-Letting will be permitted.

 

(1)                                  you will indemnify us and keep us
indemnified at all times against all loss or damage howsoever caused as a
result of our agreeing to any such modification;

 

(2)                                  possession of the Equipment shall only be
given to the Sub-Lessee after the Sub-Lessee has entered into a sub-letting
agreement (the “Sub-Letting Agreement’) with you in respect of the Equipment in
the form accepted by us a copy of which is attached hereto or any replacement
substantially in the form attached if a modification is required by statute or
by a particular Sub- Lessee provided you notify us of the modification and you
provide us with a copy of that modified Sub-Letting Agreement within 7 working
days of a written request from us;

 

(3)                                  the duration of the Sub-Letting Agreement
shall not exceed three months or extend for a period longer than the fixed
period then unexpired of the Agreement less one day;

 

(4)                                  you hereby warrant to us that:

 

(a)                                  the Sub-Letting Agreement will comply
with all statutory and regulatory requirements relating thereto and in
particular (but without limitation) statutory and regulatory requirements about
the form and content of such agreements, the provision of copies thereof and
the amount of the rentals payable on or prior to delivery of the Equipment
thereunder and the maximum or minimum period of hire of such Equipment; and

 

(b)                                 in entering into and administering every
Sub-Letting Agreement you will comply with the requirements of the Money
Laundering Regulations 1993 and in particular (but without limitation) the
requirements of those Regulations relating to the identification of the
Sub-Lessee and the keeping of records of such evidence and your transactions
with the Sub-Lessee.

 

We hereby reserve the right to carry out an audit at any time of the
Equipment and all your relevant books and records concerning the Agreement for
the purpose of ensuring that you are observing and performing all your
obligations arising under the Agreement.

 

You hereby undertake to comply with all relevant statutory and
regulatory requirements relating to your Sub-hiring business and in particular
(but without limitation) all licensing and other requirements of the Consumer
Credit Act 1974.

 

22Exhibit 10.36

 

Director Stock Option Agreement

 

This Director Stock Option Agreement, dated as of                       
      ,           ,
between Hertz Global Holdings, Inc., a Delaware corporation, and the
Director whose name appears on the signature page hereof, is being entered
into pursuant to the Hertz Global Holdings, Inc. Director Stock Incentive
Plan.  The meaning of capitalized terms
may be found in Section 6.

 

The Company and the Director hereby agree as follows:

 

Section 1.                                           Grant of Options

 

(a)                                                Confirmation of Grant.  The Company
hereby evidences and confirms, effective as of the date hereof, its grant to
the Director of Options to purchase the number of Common Shares specified on
the signature page hereof.  The
Options are not intended to be incentive stock options under the Code.  This Agreement is entered into pursuant to,
and the terms of the Options are subject to, the terms of the Plan.  If there is any inconsistency between this
Agreement and the terms of the Plan, the terms of the Plan shall govern.

 

(b)                      Option
Price.  Each share covered by an Option shall have the Option Price specified on
the signature page hereof.

 

Section 2.                                           Vesting and Exercisability

 

(a)                                                Options shall be fully vested as of the Grant Date.

 

(b)                                               Exercise.  Options may be exercised at any time and from
time to time prior to the date such Options terminate pursuant to Section 3.  Options may only be exercised with respect to
whole Common Shares and must be exercised in accordance with Section 4.

 

Section 3.                                           Termination of Options.  Unless
earlier terminated pursuant to Section 5, the Options shall terminate on
the tenth anniversary of the Grant Date (the “Normal Termination Date”),
if not exercised prior to such date.

 

Section 4.                                           Manner of Exercise

 

(a)                                                General.  Subject to such reasonable administrative
regulations as the Board may adopt from time to time, the Director may exercise
vested Options by giving at least 10 business days prior written notice to the
Secretary of the Company specifying the

 

 

proposed date on which the Director
desires to exercise a vested Option (the “Exercise Date”), the number of
whole shares with respect to which the Options are being exercised (the “Exercise
Shares”) and the aggregate Option Price for such Exercise Shares (the “Exercise
Price”).  Unless otherwise determined
by the Board, (i) on or before the Exercise Date the Director shall
deliver to the Company full payment for the Exercise Shares in United States
dollars in cash, or cash equivalents satisfactory to the Company, in an amount
equal to the Exercise Price plus any required withholding taxes or other
similar taxes, charges or fees and (ii) the Company shall register the
issuance of the Exercise Shares on its records (or direct such issuance to be
registered by the Company’s transfer agent). 
In lieu of tendering cash, the Grantee may tender shares of Common Stock
that have been owned by the Grantee for at least six months and one day, having
an aggregate Fair Market Value on the Exercise Date equal to the Exercise Price
or may deliver a combination of cash and such shares of Common Stock having an
aggregate Fair Market Value equal to the difference between the Exercise Price
and the amount of such cash as payment of the Exercise Price, subject to such rules and
regulations as may be adopted by the Compensation Committee to provide for the
compliance of such payment procedure with applicable law, including Section 16(b) of
the Exchange Act. The Company may require the Director to furnish or execute
such other documents as the Company shall reasonably deem necessary (i) to
evidence such exercise or (ii) to comply with or satisfy the
requirements of the Securities Act, applicable state or non-U.S. securities
laws or any other law.

 

Section 5.                                           Change in Control

 

(a)                                                Vesting and Cancellation.  Except as
otherwise provided in this Section 5(a), in the event of a Change in
Control, all then-outstanding Options shall be canceled in exchange for a
payment having a value equal to the excess, if any, of (i) the
product of the Change in Control Price multiplied by the aggregate number of
shares covered by all such Options immediately prior to the Change in Control
over (ii) the aggregate Option Price for all such shares, to be
paid as soon as reasonably practicable, but in no event later than 30 days
following the Change in Control.

 

(b)                                               Alternative Award.  Notwithstanding Section 5(a),
no cancellation, termination, or settlement or other payment shall occur

 

2

 

with respect to any Option if the Board
reasonably determines prior to the Change in Control that the Director shall
receive an Alternative Award meeting the requirements of the Plan.

 

Section 6.                                           Certain Definitions.  As used in
this Agreement, capitalized terms that are not defined herein have the
respective meaning given in the Plan, and the following additional terms shall
have the following meanings:

 

“Agreement” means this Director Stock Option Agreement, as amended
from time to time in accordance with the terms hereof.

 

“Code” means the United States Internal Revenue Code of 1986, as
amended, and any successor thereto.

 

“Company” means Hertz Global Holdings, Inc., provided
that for purposes of determining the status of Director’s position on the Board
of the “Company,” such term shall include the Company and its Subsidiaries.

 

“Director” means the grantee of the Options, whose name is set
forth on the signature page of this Agreement; provided that for
purposes of Section 4 and Section 7, following such person’s death “Director”
shall be deemed to include such person’s beneficiary or estate and following
such Person’s Disability, “Director” shall be deemed to include such person’s
legal representative.

 

“Exchange Act” means the Securities Exchange Act of 1934, as
amended, or any successor statute, and the rules and regulations
thereunder that are in effect at the time, and any reference to a particular
section thereof shall include a reference to the corresponding section, if any,
of such successor statute, and the rules and regulations..

 

“Exercise Date” has the meaning given in Section 4(a).

 

“Exercise Price” has the meaning given in Section 4(a).

 

“Exercise Shares” has the meaning given in Section 4(a).

 

“Grant Date” means the date hereof, which is the date on which the
Options are granted to the Director.

 

“Normal Termination Date” has the meaning given in Section 3.

 

3

 

“Option” means the right granted to the Director hereunder to
purchase one Common Share for a purchase price equal to the Option Price
subject to the terms of this Agreement and the Plan.

 

“Option Price” means, with respect to each Common Share covered by
an Option, the purchase price specified in Section 1(b) for which the
Director may purchase such Common Share upon exercise of an Option.

 

“Plan” means the Hertz Global Holdings, Inc. Director Stock
Incentive Plan.

 

“Securities Act” means the United States Securities Act of 1933, as
amended, or any successor statute, and the rules and regulations
thereunder that are in effect at the time, and any reference to a particular
section thereof shall include a reference to the corresponding section, if any,
of such successor statute, and the rules and regulations thereunder.

 

Section 7.                                           Capital Adjustments.  Subject to
the terms of the Plan, in the event of any Adjustment Event affecting the
Common Stock, the number of shares of Common Stock available for issuance under
the Plan and the number, class, exercise price or other terms of any
outstanding Award shall be adjusted by the Board if and to the extent necessary
or appropriate to reflect any Adjustment Event or other similar transaction
affecting the Common Stock.

 

Section 8.                                           Miscellaneous.

 

(a)                                                Withholding.  The Company or one of its
Subsidiaries may require the Director to remit to the Company an amount in cash
sufficient to satisfy any applicable U.S. federal, state and local and non-U.S.
tax withholding or other similar charges or fees that may arise in connection
with the grant, vesting, exercise or purchase of the Options.

 

(b)                                               Authorization to Share Personal Data.  The
Director authorizes any Affiliate of the Company to which the Director serves
on the Board or that otherwise has or lawfully obtains personal data relating
to the Director to divulge or transfer such personal data to the Company or to
a third party, in each case in any jurisdiction, if and to the extent
appropriate in connection with this Agreement or the administration of the
Plan.

 

(c)                                                No Rights as Stockholder; No Voting Rights.  The
Director shall have no rights as a stockholder of the Company with respect to
any Shares covered by the Options until the exercise of the

 

4

 

Options and delivery of the
Shares.  No adjustment shall be made for
dividends or other rights for which the record date is prior to the delivery of
the Shares.

 

(d)                                               No Right to Continued Services on the Board. Nothing in this Agreement shall be deemed to
confer on the Director any right to continue providing services as a Director
of the Company or any Subsidiary, or to interfere with or limit in any way the
right of the Company or any Subsidiary to terminate the Director’s services on
the Board of the Company at any time.

 

(e)                                                Non-Transferability of Options.  The Options
may be exercised only by the Director. 
The Options are not assignable or transferable, in whole or in part, and
they may not, directly or indirectly, be offered, transferred, sold, pledged,
assigned, alienated, hypothecated or otherwise disposed of or encumbered
(including, but not limited to, by gift, operation of law or otherwise) other
than by will or by the laws of descent and distribution to the estate of the
Director upon the Director’s death or with the Company’s consent.

 

(f)                                                 Notices.  All notices and other communications required
or permitted to be given under this Agreement shall be in writing and shall be
deemed to have been given if delivered personally or sent by certified or
express mail, return receipt requested, postage prepaid, or by any recognized
international equivalent of such delivery, to the Company or the Director, as
the case may be, at the following addresses or to such other address as the
Company or the Director, as the case may be, shall specify by notice to the
other:

 

(i)                        if to the Company, to it at:

 

Hertz
Global Holdings, Inc.

c/o The Hertz Corporation

225
Brae Boulevard

Park
Ridge, New Jersey  07656

Attention: General Counsel

 

Fax:
(201) 594-3122

 

(ii)                     if to the Director, to the Director at his or her
most recent address as shown on the books and records of the Company; and

 

5

 

All such notices and communications
shall be deemed to have been received on the date of delivery if delivered
personally or on the third business day after the mailing thereof.

 

(g)                                               Binding Effect; Benefits.  This
Agreement shall be binding upon and inure to the benefit of the parties to this
Agreement and their respective successors and assigns.  Nothing in this Agreement, express or
implied, is intended or shall be construed to give any person other than the
parties to this Agreement or their respective successors or assigns any legal
or equitable right, remedy or claim under or in respect of any agreement or any
provision contained herein.

 

(h)                                               Waiver; Amendment.

 

(i)                        Waiver.  Any party hereto or beneficiary hereof may by
written notice to the other parties (A) extend the time for the
performance of any of the obligations or other actions of the other parties
under this Agreement, (B) waive compliance with any of the
conditions or covenants of the other parties contained in this Agreement and (C) waive
or modify performance of any of the obligations of the other parties under this
Agreement.  Except as provided in the
preceding sentence, no action taken pursuant to this Agreement, including,
without limitation, any investigation by or on behalf of any party or
beneficiary, shall be deemed to constitute a waiver by the party or beneficiary
taking such action of compliance with any representations, warranties,
covenants or agreements contained herein. 
The waiver by any party hereto or beneficiary hereof of a breach of any
provision of this Agreement shall not operate or be construed as a waiver of
any preceding or succeeding breach and no failure by a party or beneficiary to
exercise any right or privilege hereunder shall be deemed a waiver of such
party’s or beneficiary’s rights or privileges hereunder or shall be deemed a
waiver of such party’s or beneficiary’s rights to exercise the same at any
subsequent time or times hereunder.

 

(ii)                     Amendment.  This Agreement may not be
amended, modified or supplemented orally, but only by a written instrument
executed by the Director and the Company.

 

(i)                                                             Assignability.  Neither this Agreement nor any
right, remedy, obligation or liability arising hereunder or by reason hereof

 

6

 

shall be assignable by the Company
or the Director without the prior written consent of the other party.

 

(j)                                     Applicable
Law.  This Agreement shall be governed
by and construed in accordance with the law of the State of Delaware regardless
of the application of rules of conflict of law that would apply the laws
of any other jurisdiction.

 

(k)                                  Section and Other Headings, etc.  The section
and other headings contained in this Agreement are for reference purposes only
and shall not affect the meaning or interpretation of this Agreement.

 

(l)                                     Counterparts.  This Agreement may be executed in
any number of counterparts, each of which shall be deemed to be an original and
all of which together shall constitute one and the same instrument.

 

7

 

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

 

 

	
   

  	
  HERTZ GLOBAL HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Irwin M. Pollack

  
	
   

  	
   

  	
  Name:

  	
  Irwin M. Pollack

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President,

  
	
   

  	
   

  	
  Director Relations,

  
	
   

  	
   

  	
  The Hertz Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE DIRECTOR:

  
	
   

  	
   

  	
   

  
	
   

  	
  «Name»

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address of the Director:

  
	
   

  	
   

  	
   

  
	
   

  	
  «Address»

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Total
  Number of Shares

  for the Purchase of

  Which

  Options have been

  Granted

  	
  Option Price

  
	
   

  	
   

  	
   

  
	
            Shares

  	
   

  	
   

  
					

 

8

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