Document:

Exhibit 4.5.12

 

 

 

 

SHARE PLEDGE AGREEMENT

 

 

 

 

by and between

 

 

HERTZ HOLDINGS NETHERLANDS
B.V.

 

 

as Pledgor

 

 

and

 

 

BNP PARIBAS

 

as Pledgee

 

 

 

Dated 21 December 2005

 

 

 

 

TABLE OF CONTENTS

 

	
  1.

  	
  DEFINITIONS
  AND INTERPRETATION

  	
  2

  
	
   

  	
   

  	
   

  
	
  1.1

  	
  definitions

  	
  2

  
	
  1.2

  	
  interpretation and construction

  	
  4

  
	
   

  	
   

  	
   

  
	
  2.

  	
  PLEDGE

  	
  5

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  pledge

  	
  5

  
	
  2.2

  	
  preservation of pledge

  	
  5

  
	
   

  	
   

  	
   

  
	
  3.

  	
  SCOPE OF
  THE PLEDGE

  	
  6

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  continuing security

  	
  6

  
	
  3.2

  	
  other remedies

  	
  6

  
	
  3.3

  	
  transfer of rights

  	
  6

  
	
   

  	
   

  	
   

  
	
  4.

  	
  REGISTRATION
  AND NOTIFICATION

  	
  7

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  registration

  	
  7

  
	
  4.2

  	
  notification

  	
  7

  
	
   

  	
   

  	
   

  
	
  5.

  	
  RIGHTS
  ATTACHING TO THE SHARES

  	
  7

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  voting rights

  	
  7

  
	
  5.2

  	
  cash and non-cash returns on the shares

  	
  8

  
	
  5.3

  	
  subscription rights

  	
  8

  
	
  5.4

  	
  contribution calls

  	
  9

  
	
  5.5

  	
  communications

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
  9

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  due incorporation, power, corporate action

  	
   

  
	
  6.2

  	
  ownership

  	
  9

  
	
  6.3

  	
  shares

  	
  9

  
	
  6.4

  	
  valid and binding obligations

  	
  10

  
	
  6.5

  	
  no breach

  	
  10

  
	
  6.6

  	
  no limitation

  	
  10

  
	
   

  	
   

  	
   

  
	
  7.

  	
  RESTRICTIONS
  AND UNDERTAKINGS

  	
  10

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  security

  	
  10

  
	
  7.2

  	
  disposal

  	
  10

  
	
  7.3

  	
  exercise of rights

  	
   

  
	
  7.4

  	
  attachments

  	
  11

  
	
  7.5

  	
  general undertaking

  	
  11

  
	
   

  	
   

  	
   

  
	
  8.

  	
  ENFORCEMENT

  	
  11

  
	
   

  	
   

  	
   

  
	
  9.

  	
  APPLICATION OF PROCEEDS

  	
  11

  

 

1

 

	
  10.

  	
  DISCLAIMER
  OF LIABILITY

  	
  12

  
	
   

  	
   

  	
   

  
	
  11.

  	
  DISCHARGE

  	
  12

  
	
   

  	
   

  	
   

  
	
  11.1

  	
  release

  	
  12

  
	
  11.2

  	
  retention of security

  	
  13

  
	
   

  	
   

  	
   

  
	
  12.

  	
  POWER OF
  ATTORNEY

  	
  13

  
	
   

  	
   

  	
   

  
	
  12.1

  	
  appointment

  	
  13

  
	
  12.2

  	
  ratification

  	
  13

  
	
   

  	
   

  	
   

  
	
  13.

  	
  EVIDENCE
  OF DEBT

  	
  14

  
	
   

  	
   

  	
   

  
	
  14.

  	
  MISCELLANEOUS

  	
  14

  
	
   

  	
   

  	
   

  
	
  14.1

  	
  notices

  	
  14

  
	
  14.2

  	
  costs and expenses

  	
  14

  
	
  14.3

  	
  delegation of powers

  	
  14

  
	
  14.4

  	
  no implied waiver

  	
  14

  
	
  14.5

  	
  amendments

  	
  14

  
	
  14.6

  	
  severability

  	
  15

  
	
  14.7

  	
  entire agreement

  	
  15

  
	
  14.8

  	
  benefit of this agreement

  	
  15

  
	
  14.9

  	
  assignment

  	
  15

  
	
  14.10

  	
  further assurances

  	
  15

  
	
  14.11

  	
  governing law

  	
  16

  
	
  14.12

  	
  jurisdiction

  	
  16

  

 

	
  SCHEDULES:

  
	
   

  	
   

  
	
  Schedule A:

  	
  Power
  of Attorney

  
	
  Schedule B:

  	
  Declaration
  of the Company

  

 

2

 

SHARE PLEDGE AGREEMENT

 

THIS SHARE PLEDGE AGREEMENT is dated
21 December 2005 and made by and between:

 

(1)                     HERTZ
HOLDINGS NETHERLANDS B.V., a
private company with limited liability, organised under the laws of the
Netherlands, having its registered office at 2132 WT Hoofddorp, Siriusdreef
34-36Amsterdam, the Netherlands, and trade register number 24134976,

 

represented
for the purposes of this Agreement by
                                                                       
in his/her capacity as
                                                                       ,

 

hereinafter
referred to as the “Pledgor”,

 

and

 

(2)                     BNP
PARIBAS S.A., a société anonyme
organised under the laws of France and authorised as a credit institution,,
having its registered office at 24, boulevard des Italiens, 75009 Paris,
France, and registered with the Registre du
Commerce et des Sociétés de Paris under the number 662 042 449,

 

acting
in its own name and on behalf of the Beneficiaries as security agent in
accordance with Article 5 of the Act of 15 December 2004;

 

hereinafter
referred to as the “Pledgee” or “Security Agent”,

 

WHEREAS 

 

(A)       The Company (as defined below), among others, has been
granted facilities in accordance with the Senior Bridge Facilities Agreement
(as defined below).

 

(B)       The Company has an issued capital of EUR 5,383,000
represented by 176,533 registered shares, fully paid-up. Hertz Holdings
Netherlands B.V. is the legal owners of 176,532 registered shares in the
Company’s share capital.

 

(C)       Pursuant to Clause 3.1 of the Senior Bridge Facilities
Agreement and Clause 12 of Part 1 of Schedule 4 attached thereto, it is a
condition to the Banks making and continuing to make facilities available under
the Senior Bridge Facilities Agreement that the Pledgor enters into this Pledge
Agreement in order to secure payment of the Secured Liabilities.

 

1

 

(D)       The Pledgor has agreed to enter into this Pledge in
favour of the Beneficiaries in respect of the shares it owns in the Company’s
share capital, as security for the Secured Liabilities.

 

(E)        Pursuant to Clause 34 of the Senior Bridge
Facilities Agreement, it has been agreed that the benefit of this Pledge shall
be held by the Pledgee on behalf of itself and the Beneficiaries and its and
their respective successors, assignees and transferees.

 

(F)        The Company’s articles of association do not
prohibit the creation of this Pledge.

 

NOW THEREFORE, THE PARTIES HAVE AGREED AS FOLLOWS : 

 

1.         DEFINITIONS AND INTERPRETATION

 

1.1       Definitions

 

a)         Capitalised terms used in this Agreement,
including the introductory paragraph and the preliminary statements hereto,
shall carry the meanings specified in the Senior Bridge Facilities Agreement,
except where the context indicates otherwise or when defined herein.

 

b)         The following terms shall have the following
meaning:

 

	
  Agreement

  	
   

  	
  means
  the present share pledge agreement.

  
	
   

  	
   

  	
   

  
	
  Beneficiaries

  	
   

  	
  means
  the Finance Parties represented by the Security Agent.

  
	
   

  	
   

  	
   

  
	
  Company

  	
   

  	
  means
  Hertz Belgium NV, a company organised under the laws of Belgium, having its
  registered office at Excelsiorlaan 20, 1930 Zaventem, Belgium, recorded with
  the register of legal entities (Brussels) under company number 0401.678.879.

  
	
   

  	
   

  	
   

  
	
  Enforcement Event

  	
   

  	
  means
  an Event of Default, as defined in the Senior Bridge Facilities Agreement,
  which is continuing and has not been waived under the Senior Bridge
  Facilities Agreement and which has resulted in the Facility Agent serving a
  notice under Clause 23.16(a) of the Senior Bridge Facilities Agreement.

  
	
   

  	
   

  	
   

  
	
  Future Shares

  	
   

  	
  means
  (i) any share issued by the Company to the Pledgor or any share in the
  Company’s share capital acquired by the Pledgor after the date hereof and
  (ii) any and all rights, title and interest in and to the shares in the
  Company which the Pledgor may in the future acquire, together with all
  certificates, shares, securities (including, if applicable, any convertible
  debt instruments, warrants or the dividends or interest thereon), rights,
  monies or property accruing or offered at any time by

  

 

2

 

	
   

  	
   

  	
  way
  of redemption, bonus, preference, option rights or otherwise to or in respect
  of the shares in the Company which the Pledgor may in the future acquire or
  in substitution or exchange for such shares.

  
	
   

  	
   

  	
   

  
	
  Lien

  	
   

  	
  means,
  any charge, encumbrance, pledge, lien (including “privilège / voorrecht”), security interest, attachment or
  similar restriction of any kind in respect of the Shares.

  
	
   

  	
   

  	
   

  
	
  Party/Parties

  	
   

  	
  means
  any party/parties to this Agreement.

  
	
   

  	
   

  	
   

  
	
  Pledge

  	
   

  	
  means
  the first priority pledge (“gage de
  premier rang / pand in eerste rang”) created by or pursuant to
  this Agreement.

  
	
   

  	
   

  	
   

  
	
  Secured Liabilities

  	
   

  	
  means
  all present and future obligations and liabilities (whether actual or
  contingent and whether owed jointly or severally or in any other capacity
  whatsoever) of the Company to the Finance Parties (including the Hedging
  Banks) (or any of them) under the Finance Documents (or any of them).

  
	
   

  	
   

  	
   

  
	
  Senior Bridge Facilities Agreement

  	
   

  	
  a
  senior bridge facilities agreement dated 21 December 2005 entered into
  between Hertz International, Ltd, as Parent, Hertz Europe Limited, as
  Coordinator, BNP Paribas S.A. and The Royal Bank of Scotland plc, as Mandated
  Lead Arrangers, Calyon S.A., as Co-Arranger, BNP Paribas S.A., The Royal Bank
  of Scotland plc and Calyon S.A., as Joint Bookrunners, the financial
  institutions named therein, as Banks, BNP Paribas S.A., as Global
  Coordinator, Security Agent and Facility Agent and the Original Borrowers and
  the Original Guarantors named therein.

  
	
   

  	
   

  	
   

  
	
  Shares

  	
   

  	
  means
  (i) the 176,532 registered shares in the Company’s share capital, known under
  the numbers 1 up to 176,532 inclusive and (ii) all rights, title and interest
  in and to the shares, together with all certificates, shares, securities
  (including, if applicable, any convertible debt instruments, warrants or the
  dividends or interest thereon), rights, monies or property accruing or
  offered at any time by way of redemption, bonus, preference, option rights or
  otherwise to or in respect of the Shares or in substitution or exchange for
  the Shares.

  

 

3

 

1.2       Interpretation and construction

 

a)         In this Agreement, unless the contrary
intention appears, a reference to

 

(i)         a provision of law is a reference to that
provision as amended or re-enacted;

(ii)        a person includes its
successors, transferees and assigns;

(iii)       any document,
agreement or other instrument is a reference to that document, agreement or
other instrument as from time to time amended, modified, restated, novated,
varied or supplemented;

(iv)       a Clause or a
Schedule is a reference to a clause or a schedule of this Agreement; and

(v)        words denoting the plural shall include the
singular and vice versa and words denoting one gender shall include another
gender.

 

b)         No provision of this Agreement shall be
interpreted adversely against a Party solely because that Party was responsible
for drafting that particular provision or because that Party is relying on that
particular provision.

 

c)         English language words used in this Agreement
intend to describe Belgian legal concepts only and the consequences of the use
of those words in English law or any other foreign law shall be disregarded.

 

d)         This Agreement has been drawn up in English. In
the event of any discrepancy between the English text of this Agreement or any
agreement resulting therefrom or relating thereto and any translation thereof,
the English language version shall prevail.

 

e)         Any Belgian legal concept referred to in this
Agreement shall, in respect of any jurisdiction other than Belgium, be deemed
to include such concepts as in that jurisdiction most closely approximate the
Belgian legal concept.

 

f)          The words “include”, “included” or “including”
are used to indicate that the matters listed are not a complete enumeration of
all matters covered.

 

g)         Any Schedule and Annex referred to in this
Agreement forms an integral part of this Agreement and any reference to this
Agreement shall include a reference to the Schedules and Annexes. In the event
of any inconsistency or contradiction between the body of this Agreement and
any of the Schedules or Annexes, the provisions of the former shall take
preference.

 

h)         The titles and headings in this Agreement or
any agreement resulting therefrom or relating thereto are inserted for
convenience and reference only and shall in no way affect the meaning,
construction or interpretation of any provision thereof.

 

4

 

2.         PLEDGE

 

2.1       Pledge

 

a)         The Pledgor hereby grants to the Pledgee,
acting in its own name as security agent for and on behalf of the Lenders in
accordance with Article 5 of the Act of 15 December 2004, which accepts, a
first priority pledge (“gage de premier rang
/ pand in eerste rang”) over the Shares in order to secure the
prompt and complete payment of all Secured Liabilities. 

 

b)         The Pledge shall be governed by the Act of 15
December 2004 on financial collateral (“Loi
du 15 décembre 2004 relative aux sûretés financières / Wet van 15 december 2004
betreffende financiële zekerheden”) and, to the extent not covered
by the above law, by the Act of 5 May 1872 on commercial pledges (“Loi du 5 mai 1872 relative au gage / Wet van 5 mei
1872 betreffende het pand”).

 

2.2       Future Shares

 

a)         If any Pledgor acquires in any manner any
Future Shares, which are not included within the pledge contained in Clause 2.1
above, it grants a first ranking pledge to the Pledgee to secure the Secured
Liabilities in the form of a pledge (“gage”/”pand”) as set out herein over all such
Future Shares.

 

b)         Upon the acquisition of Future Shares by a
Pledgor, such Pledgor shall forthwith (i) notify the Pledgee of the acquisition
of the Future Shares, (ii) confirm that the Future Shares are pledged to the
benefit of the Pledgee under this Pledge Agreement, and (iii) arrange for a
notice as mentioned in Clause 4 to be recorded on its folio in the shareholders’
register of the Company (and provide documentary evidence thereof to the
Pledgee). Upon the acquisition of Future Shares, any reference to Shares in
this Agreement shall be deemed to include a reference to such Future Shares.

 

c)         The Pledgor shall cooperate with the Pledgee
and sign or cause to be signed all such further documents and take all further
actions as the Pledgee may from time to time reasonably request to perfect and
protect the pledge over such Future Shares.

 

d)         This Agreement shall apply mutatis mutandis to the Future Shares.

 

2.3       Preservation of Pledge

 

If
and to the extent that at any time, and from time to time, in the reasonable
opinion of the Pledgee, it shall be necessary or appropriate that further
instruments be executed or further action be taken in order to create, preserve
or perfect a valid first priority right of pledge on any Shares or any Future
Shares or to enable the Pledgee to exercise and enforce its rights with respect
to any Shares or any Future Shares, the Pledgor shall as soon as possible
execute such further instruments or take such further action, at its expenses
and in such manner and form as the Pledgee may reasonably require.

 

5

 

3.         SCOPE OF THE PLEDGE

 

3.1       Continuing security

 

a)         The Pledge shall constitute continuing security
in accordance with Clause 24.3 of the Senior Bridge Facilities Agreement.

 

3.2       Other
remedies

 

a)         All rights of the Pledgee under this Agreement
are in addition to and without prejudice to any other rights vested in the
Pledgee. The Pledge may be enforced by the Pledgee without prior recourse to
any other security interest or remedy and is in addition to and shall not
prejudice or otherwise affect any such security interest or remedy.

 

b)         The Pledgor waives any right it may have to
first require the Pledgee to take action against or seek payment from any other
party or enforce any other Lien granted by the Pledgor or any other person
before seeking to enforce the Pledge.

 

3.3       Transfer
of rights

 

The
Parties agree that in the event of an assignment, transfer or novation by the
Pledgee of all or any part of the Secured Liabilities, the Pledgee shall
maintain all of its rights with respect to the Shares, so that the Pledge shall
continue, without prejudice to any further consent or formalities, to secure
due performance of the Secured Liabilities as assigned, transferred or novated
in favour of the (new) Pledgee.

 

3.4       No
subrogation

 

Until
the security created by this Agreement is released in accordance with Clause
11, the Pledgor shall not by virtue of any payment made, security realised or
moneys received hereunder for or on account of the liability of any other
party:

 

(a)        be subrogated to any rights, security or moneys
held, received or receivable by the Pledgee or be entitled to any right of
contribution or indemnity; or

 

(b)        claim, rank, prove or vote as a creditor of any
party or its estate in competition with the Pledgee’s rights created under this
Agreement; or

 

(c)        receive, claim or have the benefit of all
payment, distribution or security from or on account of any party, or exercise
any right of set-off as against such other party in competition with the
Pledgee’s rights created under this Agreement.

 

6

 

4.         RECORDING AND NOTIFICATION

 

4.1       Recording

 

a)         The Shares are in registered form. The Pledgor
shall not, without the Pledgee’s prior written consent, permit the conversion
of the Shares into bearer shares.

 

b)         The Pledgor shall ensure and arrange for the
following notice to be recorded and dated in the shareholders’ register of the
Company and signed therein on behalf of the Pledgor and the Pledgee
simultaneously with the execution hereof, or for any Future Shares immediately
after its subscription thereto or the acquisition thereof, and the Pledgor
shall procure that a certified copy of the relevant entries in the shareholders’
register of the Company shall be duly issued and delivered to the Pledgee:

 

“176.532 action nominative, numéros 1 à 176.532 ont été
données en gage de premier rang au profit de BNP PARIBAS S.A. conformément aux
dispositions d’une convention de gage sur actions, signée le 21 décembre 2005”

 

“176.532 aandelen op naam, nummers 1 tot 176.532 zijn
verpand in eerste rang ten gunste van BNP PARIBAS S.A. overeenkomstig de
bepalingen van een pandovereenkomst, ondertekend op datum van 21 december 2005”

 

c)         Simultaneously
with the execution hereof, unless both Pledgors shall immediately sign the
above notice in the shareholders’ register, the Pledgor shall execute and
deliver to the Pledgee for the purpose of recording such notice a power of
attorney in the form of Schedule A hereto.

 

4.2       Notification

 

The
Pledgor shall procure that the Company shall forthwith upon the execution hereof
provide the Pledgee with a certificate substantially in the form of Schedule
B.

 

5.         RIGHTS
ATTACHING TO THE SHARES

 

5.1       Voting rights

 

a)         Subject to paragraph (b) below, the Pledgor
shall be entitled to exercise or direct the exercise of the voting and other
rights attached to the Shares, provided, however, that the Pledgor shall
not exercise such voting rights in any manner, or otherwise permit or agree to
any (i) variation of the rights attaching to or conferred by any of the Shares
or (ii) increase in the issued share capital of the Company except if the newly
issued shares are pledged to secure the Secured Liabilities pursuant to this or
a substantially similar Agreement or (iii) cause an Enforcement Event to occur.

 

7

 

b)         At any time after an Enforcement Event: 

 

(i)         the Pledgee shall be entitled to exercise or
direct the exercise by the Pledgor of the voting and other rights attached to
the Shares as it sees fit;

 

(ii)        for the case the
Pledgee would elect to exercise those rights, the Pledgor hereby irrevocably
appoints (with full power of substitution) the Pledgee as its attorney to vote
(without voting instructions) at any shareholders’ meeting of the Company held
while an Enforcement Event is continuing.

 

5.2       Cash
and non-cash returns on the Shares

 

a)         Unless an Enforcement Event has occurred, all
dividends on the Shares shall be paid to the Pledgor.

 

b)         In the event that an Enforcement Event has
occurred, all dividends as well as any other cash return on the Shares (whether
in the form of repayment of capital, scripts
or otherwise) shall be paid exclusively to the Pledgee which shall apply the
same towards the Secured Liabilities in accordance with the Senior Bridge
Facilities Agreement. If the Pledgor was nevertheless to receive any dividends
or any other cash return on the Shares, it shall transfer it immediately to the
Pledgee. In the absence of any Secured Liabilities due and payable, the Pledgee
may, at its option, either refund the amount of such dividends or cash return
to the Pledgors, or hold such amount as part of the Shares and hold it in
pledge as collateral for the Secured Liabilities in accordance with the Senior
Bridge Facilities Agreement.

 

b)         Any return on the Shares other than a cash
return, irrespective of whether in the form of dividend shares, bonus shares or
otherwise, shall be delivered exclusively to, or shall as the case may be give
rise to the recording in the shareholders’ register of the Company of a notice
as provided in Clause 4 in the name of, the Pledgee and shall be part of the
Shares.

 

c)         This Pledge shall not in any way be affected by
any stamping, regrouping, splitting or renewal of the Shares, or by any similar
operation, and the securities resulting from any such operation shall be part
of the Shares and of the Shares.

 

5.3       Subscription rights

 

Unless
agreed otherwise by the Pledgee, the Pledgor or, provided that such member
enters into a pledge agreement containing the terms and conditions of this
Agreement, another member of the Hertz Group, shall exercise all subscription
rights to which the Shares may be entitled. The shares resulting from the
exercise of any such right shall be held in pledge by the Pledgee as collateral
for the Secured Liabilities, shall be part of the Shares for the purposes of
this Agreement, and shall be delivered to the Pledgee or shall as the case may
be give rise to the recording in the shareholders’ register of the Company of a
notice as provided in Clause 4 in the name of the Pledgee.

 

8

 

5.4       Contribution
calls 

 

The Pledgor shall forthwith pay up any
contributions duly called in respect of the Shares.

 

6.         REPRESENTATIONS AND WARRANTIES

 

The
Pledgor makes the representations and warranties set out in this Clause 6 to
the Pledgee.

 

The
Pledgor undertakes to the Pledgee that these representations and warranties
shall at all times remain true and correct until full discharge of the Pledge
in accordance with Clause 11.

 

6.1       Ownership

 

The
Pledgor has full right and title to the Shares. There is no Lien on any Shares
other than the Pledge, nor any authority granted or undertaking to create the
same. There is no floating charge (“pand op
handelszaak / gage sur fonds de commerce”) or other similar foreign law general Lien in existence on
the businesses of the Pledgor nor any mandate or undertaking to create the same
other than a general pledge on the Company’s business in favour of the Pledgee
or Permitted Encumbrances. The Shares are freely transferable and pledgeable.
The Shares have not been acquired by the Pledgor, or by any earlier owner, as
part of an acquisition of a business or of another set of assets falling under
Article 442bis of the Income Tax
Code 1992, Article 93undecies.B
of the VAT Code or Article 16ter
of the Royal Decree No. 38 of 27 July 1967 on the social status of
self-employed persons.

 

6.2       Shares

 

a)         The Shares are validly issued and fully paid up
and constitute 99.99 % of the outstanding issued shares in the share capital of
the Company. The Company has not declared any dividends in respect of the
Shares that are still unpaid on the date hereof.

 

b)         No depositary receipts have been issued for the
Shares.

 

c)         There are no outstanding options or other
rights entitling the holder thereof to the transfer of any of the Shares.

 

d)         There are no outstanding claims against the
Company for the issue of shares in the share capital of the Company.

 

e)         All of the Shares are registered in accordance
with the shareholders’ register of the Company and the Company has not issued
any bearer or dematerialised shares at any time.

 

9

 

6.3       Valid
and binding obligations

 

This
Agreement creates a valid and enforceable first priority right of pledge over
the Shares and constitutes legal, valid and binding obligations of the Pledgor,
enforceable in accordance with its terms.

 

6.4       No
breach

 

The
execution and performance of this Agreement does not constitute a breach of any
contractual or other obligation of the Pledgor.

 

6.5       No
limitation

 

There
are no limitations, whether pursuant to the articles of association of the
Company or to any agreement, to the transferability of the Shares or to the
exercise of the voting rights attached thereto. There is no cause of suspension
of the voting rights attached to the Shares; in particular, the Pledgor has
duly given to the Company any notice that may have been required pursuant to
Article 632 §2 of the Company Code in connection with its acquisition of the
Shares.

 

7.         RESTRICTIONS AND UNDERTAKINGS

 

7.1       Security

 

Unless
otherwise permitted under the Finance Documents, the Pledgor shall not, without
the prior written consent of the Pledgee, create or permit to subsist any Lien
over any of the Shares or any part thereof (irrespective of whether ranking
before or behind the Pledge), and shall not permit the existence of any such
Lien other than this Pledge.

 

7.2       Disposal

 

a)         Unless otherwise permitted under the Finance
Documents, the Pledgor shall not (nor shall the Pledgor agree to), without the
prior written consent of the Pledgee, sell, lease, transfer or otherwise
dispose of any of the Shares.

 

b)         The Pledgor shall not acquire or permit the
creation of shares in the share capital of the Company unless such shares are
pledged to the Pledgee pursuant to this Agreement or a pledge agreement
containing the terms and conditions of this Agreement, and the Pledgee shall
not co-operate in the issue of depositary receipts for the Shares or any of
them.

 

10

 

7.3       Attachments

 

The
Pledgor shall procure that no executory seizure (“saisie exécutoire / uitvoerend beslag”) is made on any of
the Shares and that any conservatory seizure (“saisie
conservatoire / bewarend beslag”) thereon is lifted within 60 days
of its first being made.

 

7.4       General
undertaking

 

The
Pledgor shall not do, or permit to be done, anything which could prejudice the
enforceability of the Pledge. The Pledgor shall cooperate with the Pledgee and
sign or cause to be signed all such further documents and take all such further
action as the Pledgee may from time to time reasonably request to perfect and
protect the pledge of the Shares and to carry out the provisions and purposes
of this Agreement.

 

8.         ENFORCEMENT

 

Without
prejudice to any other right or remedy available to the Pledgee, at any time on
or after an Enforcement Event has occurred:

 

a)         the Pledgee may enforce the Pledge pursuant to
and in accordance with Article 8, §1 of the law of 15 December 2004 relating to
financial security interests; and

 

b)         the Pledgee may exercise all rights and
remedies it possesses, and may act generally, to the extent permitted by
applicable law, in relation to the Shares in such manner as it shall reasonably
determine;

 

it
being understood, for the avoidance of doubt, that nothing in this Agreement
shall be construed as giving the Pledgee any right to appropriate any of the
Shares.

 

The
exercise by the Pledgee of the rights set out in this Clause 8 shall not be
subject to prior notice nor authorisation from the courts.

 

9.         APPLICATION
OF PROCEEDS

 

All
moneys received by the Pledgee under or pursuant to this Agreement shall be
applied in accordance with the Intercreditor Deed as defined in the Senior
Bridge Facilities Agreement.

 

11

 

10.       DISCLAIMER
OF LIABILITY

 

The
Pledgee shall not be liable to the Pledgors for any costs, losses, liabilities
or expenses relating to the enforcement of the Pledge or from any act, default,
omission or misconduct of the Pledgee, or its officers, employees or agents in
relation to the Shares or in connection with this Agreement and/or the Senior
Bridge Facilities Agreement except to the extent caused by the Pledgee’s own
gross negligence (“faute grave / grove fout”) or wilful misconduct (“dol / bedrog”).

 

11.       DISCHARGE

 

11.1    Release

 

a)         Subject to Clause 11.2 hereof, the Pledgee
shall, at the request and cost of the Pledgor, release and cancel the Pledge
upon (a) the Secured Liabilities being discharged in full and none of the
secured parties being under any further actual or contingent obligation to make
advances or provide other financial accommodation to the security providers or
any other person under any of the Finance Documents, or (b) the Pledgors
ceasing to be both a Borrower and a Guarantor subject to, and in accordance
with, the Senior Bridge Facilities Agreement, 

 

b)         In connection with (a) any Permitted Disposal
of any property that is subject to the Pledge, (b) any sale or other
disposition of any Shares otherwise permitted by any Finance Document that is
subject to the Pledge, (c) any sale or other disposition of any Pledged Asset
where the Facility Agent or the Security Agent has consented to the disposal
pursuant to any Finance Document, Take-Out Financing, (d) any sale or any other
disposition of any property pursuant to a merger, consolidation,
reorganisation, winding-up, securitisation, Take-Out Financing or sale and
leaseback permitted by any Finance Document to the extent necessary to ensure
such merger, consolidation, reorganisation, winding-up, securitisation,
Take-Out Financing or sale and leaseback take place or (e) the creation of any
Encumbrance permitted by paragraph (x) of the definition of Permitted
Encumbrances, the Security Agent shall, at the request and cost of the Parent,
release and cancel the Pledge and procure the reassignment to the Pledgor of
the Shares pursuant to this Agreement, provided that, to the extent that the
disposal of the Shares is a Permitted Disposal or a sale or disposition
otherwise permitted by any Finance Document, the Shares shall be declared to be
automatically released from the Pledge with effect from the day of such
disposal and the Security Agent and the Facility Agent shall each do all such
acts which are reasonably requested by the Parent in order to release the
Shares.

 

c)         The Pledgee shall give such instructions and
directions as any Pledgor may reasonably require in order to perfect such
release.

 

12

 

11.2    Retention
of security

 

a)         Any release of this Pledge shall be null and
void and without effect if any payment received by the Pledgee and applied
towards satisfaction of all or part of the Secured Liabilities (i) is avoided
or declared invalid against the creditors of the maker of such payment, or (ii)
becomes repayable by the Pledgee, or (iii) proves not to have been effectively
received by the Pledgee.

 

b)         If any payment by any Pledgor or any discharge
given by the Pledgee (whether in respect of any of the Secured Liabilities or
any security for the Secured Liabilities or otherwise) is avoided or reduced
for whatever reason:

 

(i)         the liability of any Pledgor shall continue as
if the payment, discharge, avoidance or reduction had not occurred; and

 

(ii)        the Pledgee shall, to
the extent permitted by applicable law, be entitled to recover the value or
amount of that security or payment from any Pledgor, as if the payment,
discharge, avoidance or reduction had not occurred,

 

being
understood that the Pledgor shall promptly do whatever the Pledgee requires for
such purpose, without prejudice to the Pledgors’ other obligations under this
Agreement.

 

12.       POWER
OF ATTORNEY

 

12.1    Appointment

 

The
Pledgor hereby irrevocably appoints the Pledgee as its attorney (with full
power of substitution) for the purposes of, on its behalf and in its name or
otherwise, at such time and in such manner as the attorney thinks fit upon the
occurrence of an Enforcement Event in accordance with the Senior Bridge
Facilities Agreement:

 

a)         doing anything which the Pledgor is obliged to
do (but has not done) under this Agreement and/or the Senior Bridge Facilities
Agreement; and

 

b)         exercising any of the rights conferred on the
Pledgor in relation to the Shares, under this Agreement and/or the Senior
Bridge Facilities Agreement or any applicable law, provided that such
exercising does not violate the corporate interest of the Pledgor.

 

12.2    Ratification

 

The
Pledgor agrees to ratify and confirm whatever any such attorney shall
reasonably do in the exercise or purported exercise of the power of attorney
granted by it in Clause 12.1, provided that such action by the Pledgee does not
violate the corporate interest of the Pledgor.

 

13

 

13.       EVIDENCE OF DEBT

 

A
certificate signed by the Pledgee setting forth any amount due by the Pledgor
in respect of the Secured Liabilities shall, in the absence of manifest error
and until evidence of the contrary, be prima facie evidence of the existence
and amount of the Secured Liabilities.

 

14.       MISCELLANEOUS

 

14.1    Notices

 

All
notices or other communications under or in connection with this Agreement
shall be given in accordance with the provisions of Clause 42 of the Senior
Bridge Facilities Agreement.

 

14.2    Costs
and expenses

 

All
costs and expenses shall be allocated in accordance with the provisions of
Clause 27.2 of the Senior Bridge Facilities Agreement.

 

14.3    Delegation
of powers

 

The
Pledgee shall be entitled, at any time and as often as may be expedient, to delegate
all or any of the powers and discretion vested in it by this Agreement in such
manner, upon such terms and to such person as the Pledgee in its absolute
discretion may think fit.

 

14.4    No
implied waiver

 

a)         Nothing shall be construed as a waiver under
this Agreement unless a document to that effect has been signed by the Parties
or notice to that effect has been given.

 

b)         No failure or delay by the Pledgee to exercise
any right, power or remedy under this Agreement shall operate as a waiver
thereof.

 

14.5    Amendments

 

Except
as otherwise provided in this Agreement, no amendment to this Agreement shall
have any force or effect unless it is in writing and signed by or on behalf of
all Parties having obtained the requisite approval, if any, in accordance with
the provisions of the Senior Bridge Facilities Agreement.

 

14

 

14.6    Severability

 

a)         Each of the provisions of this Agreement is
several and distinct from the others and if at any time one or more of such
provisions is or becomes invalid, illegal or
unenforceable the validity, legality and enforceability of the remaining
provisions hereof shall not in any way be affected or impaired thereby.

 

b)         In case of any such illegality, invalidity or
unenforceability, the Parties shall negotiate in good faith with a view to
agree on the replacement of such provision by a provision which is legal, valid
and enforceable and which is to the extent practicable in accordance with the
intents and purposes of this Agreement and which in its economic effect comes
as close as practicable to the provision being replaced.

 

14.7    Entire
agreement

 

This
Agreement contains the entire agreement between the Parties hereto relating to
the matters provided herein and supersedes all prior agreements and
understandings between the Parties other than the Senior Bridge Facilities
Agreement, whether oral or written, regarding the subject matter hereof.

 

14.8    Benefit
of this Agreement

 

This
Agreement shall be binding on, and inure for the benefit of, the Parties and
their respective successors.

 

14.9    Assignment

 

The
Pledgor may not assign or transfer, in full or part, this Agreement or any of
its rights, interests or obligations hereunder without the prior consent in
writing of the Pledgee.

 

14.10  Further
assurances

 

In
connection with this Agreement and all transactions contemplated hereby, each
Party hereto shall execute and deliver all such additional documents and
instruments, and perform such additional acts, as any other Party hereto may
reasonably request in order to carry out the intent and accomplish the purposes
of this Agreement and the consummation of the transactions contemplated hereby.
All approvals and consents of any Party hereunder shall be in writing.

 

15

 

14.11  Governing
law

 

This
Agreement shall be governed by and construed in accordance with the laws of
Belgium.

 

14.12  Jurisdiction

 

a)         Any dispute arsing out of or in connection with
this Agreement, that the Parties are unable to settle amicably, shall be
submitted to the exclusive jurisdiction of the competent court in Brussels
(Belgium).

 

b)         The submission to the jurisdiction of the
Brussels courts referred to in paragraph (a) above shall not limit the right of
the Pledgee to initiate proceedings in any other court which may otherwise have
jurisdiction.

 

 

(signature
page follows)

 

16

 

Executed
in
                                    
on 21 December 2005 in two (2) originals, each Party acknowledging the receipt
of one original.

 

 

HERTZ HOLDING NETHERLANDS B.V. 

as Pledgor

 

 

	
  By:

  	
  /s/
  Nuns Moodliar

  	
   

  	
  By:

  	
  /s/
  Michel Taride

  	
   

  
	
   

  	
   

  
	
  Name:
  Nuns Moodliar

  	
  Name:
  Michel Taride

  
	
  Title:
  Authorized Signatory

  	
  Title:
  Authorized Signatory

  

 

 

BNP PARIBAS S.A. 

as Pledgee

 

 

	
  By:

  	
  /s/
  Authorized Signatory

  	
   

  	
  By:

  	
  /s/
  Authorized Signatory

  	
   

  
	
   

  	
   

  
	
  Name:
  Authorized Signatory

  	
  Name:
  Authorized Signatory

  
	
  Title:
  Authorized Signatory

  	
  Title:
  Authorized Signatory

  

 

17Exhibit 4.5.13

 

HERTZ CANADA LIMITED

 

as Obligor

 

and

 

BNP PARIBAS (CANADA)

 

as Security
Agent

 

 

SECURITY AGREEMENT

 

December 21,  2005

 

 

STIKEMAN ELLIOTT LLP

 

 

SECURITY AGREEMENT

 

Security Agreement dated as of December 21,
2005 and made by Hertz Canada Limited, to and in favour of BNP Paribas (Canada)
as Security Agent for the benefit of the Finance Parties and the Euro MTN
Secured Parties.

 

RECITALS:

 

(a)           The Finance Parties have agreed to make
certain credit facilities available to the Obligor on the terms and conditions
contained in the Facilities Agreement; and

 

(b)           It is a condition precedent to the extension
of credit to the Obligor under the Facilities Agreement that the Obligor
execute and deliver this Agreement in favour of the Security Agent as security
for the Secured Obligations.

 

In consideration of the foregoing and other
good and valuable consideration, the receipt and adequacy of which are
acknowledged, the Obligor agrees as follows.

 

ARTICLE 1

INTERPRETATION

 

Section 1.1            Defined
Terms.

 

As used in this Agreement, the following
terms have the following meanings:

 

“ABL Facility” means (i) the credit agreement dated on or about the date
hereof among, inter alia, Hertz
Equipment Rental Corporation, The Hertz Corporation, Matthews Equipment (as
defined below) and Western Shut-Down (1995) Ltd., as borrowers, and Deutsche
Bank AG, as administrative agent, and the other financial parties thereto as
lenders, and (ii) the other loan and security documentation relating to
such credit agreement.

 

“Agreement” means this security agreement.

 

“Collateral” has the meaning specified in Section 2.1.

 

“Euro  MTNs” means the Euro Medium-Term Notes of
Hertz Finance Centre PLC and/or The Hertz Corporation, issued and outstanding
on the date hereof pursuant to the Euro MTN Fiscal Agency Agreement.

 

“Euro MTN Fiscal
Agency Agreement” means the Amended and Restated Fiscal Agency
Agreement, dated as of July 16, 2004, among The Hertz Corporation, Hertz
Finance Centre PLC, JPMorgan Chase Bank and J.P. Morgan Bank Luxembourg S.A.

 

 

“Euro MTN Secured
Parties” means any persons who are entitled to, or are the
beneficiaries of, any of the benefits in respect of the Euro MTN Obligations.

 

“Euro MTN
Obligations” means all obligations, if any, of the Obligor under the
Euro MTNs and the Euro MTN Fiscal Agency Agreement, and any obligations of the
Obligor under the Finance Documents for the benefit of the holders of the Euro
MTNs, whether for principal, interest (including interest, which but for the
filing of a petition in bankruptcy with respect to the Obligor, would have
accrued on any Euro MTN Obligation, whether or not a claim is allowed against
the Obligor for such interest in the related bankruptcy proceeding), fees,
expenses, indemnification or otherwise.

 

“Facilities Agreement”
means the senior bridge facilities agreement dated on or about the date hereof,
among, inter alia, the Parent,
the Original Borrowers, the Original Guarantors, the Mandated Lead Arrangers,
the Co-Arranger, the Joint Bookrunners, the Facility Agent, the Global
Coordinator and the Banks, as the same may be amended, modified, extended,
renewed, replaced, restated, supplemented or refinanced from time to time and
includes any agreement extending the maturity of, refinancing or restructuring
all or any portion of, the indebtedness under such agreement or any successor
agreements, whether or not with the same Facility Agent, Arrangers or Banks.

 

“Governmental Entity”
means any international tribunal, agency, body commission or other authority,
any government, executive, parliament, legislature or local authority, or any
governmental entity, ministry, department or agency or regulatory authority,
court, tribunal, commission or board of or within Canada, or any other foreign
jurisdiction, or any political subdivision of any thereof or any authority
having jurisdiction therein or any quasi governmental or private body
exercising any regulatory, expropriation or taxing authority under or for the
account of any of the above.

 

“Intellectual Property” means domestic and foreign: (i) patents, applications for patents
and reissues, divisions, continuations, renewals, extensions and
continuations-in-part of patents or patent applications; (ii) proprietary and
non-public business information, including inventions (whether patentable or
not), invention disclosures, improvements, discoveries, trade secrets,
confidential information, know-how, methods, processes, designs, technology,
technical data, schematics, formulae and customer lists, and documentation
relating to any of the foregoing; (iii) copyrights, copyright registrations and
applications for copyright registration; (iv) mask works, mask work
registrations and applications for mask work registrations; (v) designs, design
registrations, design registration applications and integrated circuit
topographies; (vi) trade names, business names, corporate names, domain names,
website names and world wide web addresses, common law trade-marks, trade-mark
registrations, trade mark applications, trade dress and

 

2

 

logos, and the goodwill associated with any of the
foregoing; (vii) computer software and programs (both source code and object
code form), all proprietary rights in the computer software and programs and
all documentation and other materials related to the computer software and
programs; and (viii) any other intellectual property and industrial property.

 

“Instruments” means (i) a bill, note or cheque within the meaning of the Bills of  Exchange
Act (Canada) or any other writing that evidences a right to the
payment of money and is of a type that in the ordinary course of business is
transferred by delivery with any necessary endorsement or assignment, or (ii) a
letter of credit and an advice of credit if the letter or advice states that it
must be surrendered upon claiming payment thereunder, or (iii) chattel paper or
any other writing that evidences both a monetary obligation and a security
interest in or a lease of specific goods, or (iv) documents of title or any other
writing that purports to be issued by or addressed to a bailee and purports to
cover such goods in the bailee’s possession as are identified or fungible
portions of an identified mass, and that in the ordinary course of business is
treated as establishing that the Person in possession of it is entitled to
receive, hold and dispose of the document and the goods it covers, or (v) any
document or writing commonly known as an instrument.

 

“Matthews Equipment”
means Matthews Equipment Limited, a corporation amalgamated and existing under
the laws of the Province of Ontario.

 

“Obligor” means Hertz Canada Limited, a corporation incorporated and existing
under the laws of the Province of Ontario, and its successors and permitted
assigns.

 

“Person”
means a natural person, partnership, joint stock company, trust, unincorporated
association, joint venture or other entity, Governmental Entity, and pronouns
have a similarly extended meaning.

 

“Registrable Intellectual Property” means any Intellectual Property in respect of which ownership,
title, security interests, charges or encumbrances are capable of registration,
recording or notation with any Governmental Entity pursuant to applicable laws.

 

“Restricted Asset” has the meaning specified in Section 2.4(1).

 

“Secured Liabilities”
means all present and future obligations and liabilities (whether actual or
contingent and whether owed jointly or severally or in any other capacity
whatsoever) of the Obligor to the Finance Parties (or any of them) under the
Finance Documents (or any of them).

 

“Secured Obligations” has the meaning specified in Section 2.2(a).

 

3

 

“Securities” means:

 

(a)           a document that is (i) issued in bearer,
order or registered form, (ii) of a type commonly dealt in upon securities
exchanges or markets or commonly recognized in any area in which it is issued
or dealt in as a medium for investment, (iii) one of a class or series or by
its terms is divisible into a class or series of documents, and (iv) evidence
of a share, participation or other interest in property or in any enterprise or
is evidence of an obligation of the issuer and includes an uncertificated
security; and

 

(b)           a share, participation or other interest in a
Person;

 

but excludes

 

(c)           any ULC Shares; and

 

(d)           any shares in the capital of Matthews
Equipment.

 

“Security Agent” means BNP Paribas (Canada) acting as Canadian security agent for
the Finance Parties and any successor Canadian security agent appointed under
the Facilities Agreement and its successors and permitted assigns.

 

“Security Interest” has the meaning specified in Section 2.2.

 

“ULC Shares” means shares in any unlimited company at any time owned or
otherwise held by the Obligor.

 

Section 1.2            Interpretation.

 

(1)           Terms defined in the Personal Property Security Act (Ontario)
and used but not otherwise defined in this Agreement have the same
meanings.  Capitalized terms used in this
Agreement but not defined have the meanings given to them in the Facilities
Agreement.

 

(2)           Any reference in any
Finance Document to Encumbrances permitted by the Facilities Agreement and any
right of the Obligor to create or suffer to exist Encumbrances permitted by the
Facilities Agreement are not intended to and do not and will not subordinate
the Security Interest to any such Encumbrance or give priority to any Person
over the Finance Parties.

 

(3)           In this Agreement the words
“including”, “includes” and “include” mean “including
(or includes or include) without limitation”.  The expressions “Article”, “Section”
and other subdivision followed by a number mean and refer to the specified
Article, Section or other subdivision of this Agreement.

 

(4)           Any reference in this
Agreement to gender includes all genders. 
Words importing the singular number only include the plural and vice
versa.

 

4

 

(5)           The division of this
Agreement into Articles, Sections and other subdivisions and the insertion of
headings are for convenient reference only and do not affect its interpretation.

 

(6)           The schedules attached to
this Agreement form an integral part of it for all purposes of it.

 

(7)           Any reference to this
Agreement, any Finance Document or any Security Document refers to this
Agreement or such Finance Document or Security Document as the same may have
been or may from time to time be amended, modified, extended, renewed,
restated, replaced or supplemented and includes all schedules attached to it.  Except
as otherwise provided in this Agreement, any reference in this Agreement to a
statute refers to such statute and all rules and regulations made under it as
the same may have been or may from time to time be amended or re-enacted.

 

ARTICLE 2

SECURITY

 

Section 2.1            Grant
of Security.

 

Subject to Section 2.4, the Obligor
grants to the Security Agent, for the benefit of the Finance Parties, a
security interest in, and assigns, mortgages, charges, hypothecates and pledges
to the Security Agent, for the benefit of the Finance Parties and the Euro MTN
Secured Parties, all of the property and undertaking of the Obligor now owned
or hereafter acquired and all of the property and undertaking in which the
Obligor now has or hereafter acquires any interest (collectively, the “Collateral”) including all of the
Obligor’s:

 

(a)           present and after-acquired personal property;

 

(b)           inventory including Core Country Fleet and
other goods held for sale, lease or resale, goods furnished or to be furnished
to third parties under contracts of lease, consignment or service, goods which
are raw materials or work in process, goods used in or procured for packing and
materials used or consumed in the business of the Obligor;

 

(c)           equipment, machinery, furniture, fixtures,
plant, vehicles and other goods of every kind and description and all licences
and other rights and all related records, files, charts, plans, drawings,
specifications, manuals and documents;

 

(d)           accounts due or accruing (including all
Vehicle Manufacturer Receivables, Vehicle Dealer Receivables, Rebate
Receivables, Insurance Receivables and VAT Receivables) and all related
agreements, books,

 

5

 

accounts, invoices, letters, documents and papers recording, evidencing
or relating to them;

 

(e)           money, documents of title and chattel paper;

 

(f)            Instruments and Securities, including the
Instruments and Securities listed in Schedule       ;

 

(g)           intangibles including all security interests,
goodwill, choses in action, contracts, contract rights, licenses and other
contractual benefits (including those under any Buy-Back Agreements, Designated
Obligor Intercompany Loan Agreement and Designated Obligor Charge;

 

(h)           Intellectual Property including the
Registrable Intellectual Property listed in Schedule       ;

 

(i)            all substitutions and replacements of and
increases, additions and, where applicable, accessions to the property
described in Section 2.1(a) through Section 2.1(h) inclusive; and

 

(j)            all proceeds in any form derived directly or
indirectly from any dealing with all or any part of the property described in
Section 2.1(a) through Section 2.1(i) inclusive, including the
proceeds of such proceeds,

 

Section 2.2            Secured
Obligations.

 

The security interest, assignment,
mortgage, charge, hypothecation and pledge granted by this Agreement (collectively,
the “Security Interest”) secures
the payment and performance of:

 

(a)           (i) the Secured Liabilities, and (ii)
all Euro MTN Obligations (collectively, the “Secured Obligations”); and

 

(b)           For greater certainty, the Secured
Obligations shall include all expenses, costs and charges incurred by or on
behalf of the Finance Parties in connection with this Agreement, the Security
Interest or the Collateral, including all legal fees, court costs, receiver’s
or agent’s remuneration and other expenses of taking possession of, repairing,
protecting, insuring, preparing for disposition, realizing, collecting,
selling, transferring, delivering or obtaining payment for the Collateral, and
of taking, defending or participating in any action or proceeding in connection
with any of the foregoing matters or otherwise in connection with the Finance
Parties’ interest in any

 

6

 

Collateral, whether or not directly relating to the enforcement of this
Agreement or any other Finance Document (collectively, the “Expenses”).

 

Section 2.3            Attachment.

 

(1)           The Obligor acknowledges
that (i) value has been given, (ii) it has rights in the Collateral (other than
after-acquired Collateral), (iii) it has not agreed to postpone the time of attachment
of the Security Interest, and (iv) it has received a copy of this
Agreement.

 

(2)           If any Securities or
Instruments are now or at any time become evidenced, in whole or in part, by
uncertified securities registered or recorded in records maintained by or on
behalf of the issuer thereof in the name of a clearing agency or a custodian or
of a nominee of either, the Obligor will, at the request of the Security Agent,
cause an appropriate entry to be made in the records of the clearing agency or
custodian to record the interest of the Security Agent in such Securities or
Instruments created pursuant to this Agreement.

 

(3)           The Obligor shall deliver
to and deposit with the Security Agent any and all certificates evidencing the
Securities listed in Schedule       , each accompanied by a stock power duly endorsed in blank for
transfer.  The Obligor shall also deliver
to and deposit with the Security Agent the Instruments listed in Schedule       .

 

(4)           If the Obligor acquires any
Securities or any Instruments, the Obligor will notify the Security Agent in
writing and provide the Security Agent with a revised Schedule A recording the
acquisition and particulars of such Instruments or Securities within 15 days
after such acquisition.  Upon request by
the Security Agent, the Obligor will promptly deliver to and deposit with the
Security Agent any such Securities or Instruments as security for the Secured
Obligations, each accompanied by a stock transfer power of attorney duly
endorsed in blank for transfer.  The Obligor
will also promptly inform the Security Agent in writing of the acquisition by
the Obligor of any ULC Shares.

 

(5)           At the request of the
Security Agent, the Obligor will (i) cause the transfer of any Securities or
Instruments to the Security Agent to be registered wherever such registration
may be required or advisable in the reasonable opinion of the Security Agent,
(ii) duly endorse any such Securities or Instruments for transfer in blank or
register them in the name of the Security Agent or its nominee or otherwise as
the Security Agent may reasonably direct, and (iii) immediately deliver to the
Security Agent any and all consents or other

 

7

 

documents which may be necessary to effect
the transfer of any such Securities or Instruments to the Security Agent or any
third party.

 

(6)           The Obligor will promptly
notify the Security Agent in writing of the acquisition by the Obligor of any
Registrable Intellectual Property.  The
Obligor will provide the Security Agent with a revised Schedule recording the
acquisition and particulars of such additional Intellectual Property.

 

Section 2.4            Scope
of Security Interest.

 

(1)           To the extent that an
assignment of amounts payable and other proceeds arising under or in connection
with, or the grant of a security interest in any agreement, licence, permit or
quota of the Obligor would result in the termination of such agreement,
licence, permit or quota (each, a “Restricted
Asset”), the Security Interest with respect to each Restricted Asset
will constitute a trust created in favour of the Security Agent, for the
benefit of the Finance Parties, pursuant to which the Obligor holds as trustee
all proceeds arising under or in connection with the Restricted Asset in trust
for the Security Agent, for the benefit of the Finance Parties, on the
following basis:

 

(a)           subject to the Facilities Agreement, until
the Security Interest is enforceable the Obligor is entitled to receive all
such proceeds; and

 

(b)           whenever the Security Interest is
enforceable, (i) all rights of the Obligor to receive such proceeds cease and
all such proceeds will be immediately paid over to the Security Agent for the
benefit of the Finance Parties, and (ii) the Obligor will take all actions
requested by the Security Agent to collect and enforce payment and other rights
arising under the Restricted Asset.

 

The Obligor will use all commercially
reasonable efforts to obtain the consent of each other party to any and all
Restricted Assets to the assignment of such Restricted Asset to the Security
Agent in accordance with this Agreement. 
The Obligor will also use all commercially reasonable efforts to ensure
that all agreements entered into on and after the date of this Agreement
expressly permit assignments of the benefits of such agreements as collateral
security to the Security Agent in accordance with the terms of this Agreement.

 

(2)           The Security Interest with
respect to trade-marks constitutes a security interest in, and a charge,
hypothecation and pledge of, such Collateral in favour of the Security Agent
for the benefit of the Finance Parties, but does not constitute an assignment
of such Collateral to the Security Agent or any Finance Party.

 

8

 

(3)           Until the Security Interest
is enforceable, the grant of the Security Interest in the Intellectual Property
does not affect in any way the Obligor’s rights to commercially exploit the
Intellectual Property, defend it, enforce the Obligor’s rights in it or with respect
to it against third parties in any court or claim and be entitled to receive
any damages with respect to any infringement of it.

 

(4)           The Security Interest does
not extend to consumer goods or ULC Shares.

 

(5)           The Security Interest does
not extend or apply to the last day of the term of any lease or sublease of
real property or any agreement for a lease or sublease of real property, now
held or hereafter acquired by the Obligor, but the Obligor will stand possessed
of any such last day upon trust to assign and dispose of it as the Security
Agent may reasonably direct.

 

Section 2.5            Grant
of Licence to Use Intellectual Property.

 

At such time as the Security Agent is
lawfully entitled to exercise its rights and remedies under Article 3, the
Obligor grants to the Security Agent an irrevocable, nonexclusive licence
(exercisable without payment of royalty or other compensation to the Obligor)
to use or sublicense or to assign any Intellectual Property in which the
Obligor has rights wherever the same may be located, including in such licence
access to (i) all media in which any of the licensed items may be recorded or
stored, and (ii) all software and computer programs used for compilation or
print-out.  The license granted under
this Section is to enable the Security Agent to exercise its rights and
remedies under Article 3 and for no other purpose.

 

Section 2.6            Care
and Custody of Collateral.

 

(1)           The Finance Parties have no
obligation to keep Collateral in their possession identifiable.

 

(2)           The Security Agent may,
upon the occurrence and continuance of an Event of Default, (i) notify any
Person obligated on an Instrument, Security or account to make payments to the
Security Agent, whether or not the Obligor was previously making collections on
such accounts, chattel paper or instruments, and (ii) assume control of any
proceeds arising from the Collateral. 
For greater certainty, except where it is a condition for the charge of
any such Instrument, Security or account to be valid and enforceable, the
Obligor shall not be required to notify any Person who is party to any such
Instrument, Security or account that has been charged hereunder that such
Instrument, Security or account has been so charged (prior to enforcement of
the Security Interest) so long as the Parent notifies the Security Agent in
writing that, in the reasonable opinion of the Parent, such notification would
be likely to materially prejudice the relationship the Obligor has with such
Person.

 

9

 

(3)           The Security Agent has no
obligation to collect dividends, distributions or interest payable on, or
exercise any option or right in connection with, any Securities or
Instruments.  The Security Agent has no
obligation to protect or preserve any Securities or Instruments from
depreciating in value or becoming worthless and is released from all
responsibility for any loss of value.  In
the physical keeping of any Securities, the Security Agent is only obliged to
exercise the same degree of care as it would exercise with respect to its own
Securities kept at the same place.

 

Section 2.7            Rights
of the Obligor.

 

(1)           Until the occurrence of an
Event of Default which is continuing, the Obligor is entitled to (i) vote
the Securities that are part of the Collateral provided that, the Obligor shall
not be entitled to vote, or otherwise permit or agree to any (a) variation
of any rights attaching to or conferred by any of the Securities,
(b) increase the issued capital of the entity whose securities are pledged
hereunder, which in either case for (a) and (b) above, would, in the reasonable
opinion of the Security Agent, prejudice the ability of the Security Agent or
the Finance Parties to enforce the Security Interest, and (ii) to receive
all dividends and distributions on such Securities.  In order to allow the
Obligor to vote any Securities registered in the Security Agent’s name or the
name of its nominee, at the request and the expense of the Obligor, the
Security Agent will, prior to the Security Interest being enforceable, and may,
after the Security Interest is enforceable, execute valid proxies appointing
proxyholders to attend and act at meetings of shareholders, and execute
resolutions in writing, all pursuant to the relevant provisions of the issuer’s
governing legislation.  Upon the occurrence and during the
continuance of an Event of Default, all rights of the Obligor to vote (under
any proxy given by the Security Agent (or its nominee) or otherwise) or to
receive distributions or dividends cease and all such rights become vested
solely and absolutely in the Security Agent.

 

(2)           Any distributions or
dividends received by the Obligor contrary to Section 2.7(1) or any other
moneys or property received by the Obligor after the Security Interest is
enforceable will be received as trustee for the Security Agent and the Finance
Parties and shall be immediately paid over to the Security Agent.

 

Section 2.8            Broad
Security Registrations.

 

With respect to the personal property
security registrations made by DaimlerChrysler Canada Inc., General Motors
Acceptance Corp., General Motors Acceptance Corporation of Canada Limited,
General Electric Capital Leaseholder LDA, GMAC Leaseco Limited, Ricoh Canada
Inc., Kal Tire A Corporate Partnership, General Electric Capital Canada Inc.,
Westminster Toyota Ltd., Xerox Canada Ltd.,

 

10

 

MacPhee Pontiac Buick GMC Ltd., Carroll South Shore
Motors Inc., Carroll Pontiac Buick Limited, Forbes Chevrolet Oldsmobile
Cadillac, National Leasing Group Inc., 3041518 Nova Scotia Limited and The Bank
of Nova Scotia prior to the date hereof against the Obligor in any jurisdiction
in Canada, the Obligor shall, within thirty (30) days from the date hereof use
commercially reasonable efforts to either, (a) cause financing change
statements to be filed in the applicable public offices to limit such
registrations to the security interest and collateral to which they relate, or
(b) obtain estoppel certificates or confirmations from the applicable
secured parties, in form and substance satisfactory to the Security Agent,
pursuant to which such secured parties confirm and limit such registrations to
the security interest and collateral to which they relate.

 

Section 2.9            Expenses.

 

The Obligor is liable for and will pay on
demand by the Security Agent any and all Expenses.

 

ARTICLE 3

ENFORCEMENT

 

Section 3.1            Enforcement.

 

The Security Interest shall be and become
enforceable against the Obligor upon the occurrence of an Event of Default
which is continuing and has not been waived under the Facilities Agreement and
which has resulted in the Facility Agent serving a notice under clause 23.16(a)
of the Facilities Agreement.

 

Section 3.2            Remedies.

 

Whenever the Security Interest is
enforceable, the Security Agent may realize upon the Collateral and enforce the
rights of the Security Agent and the Finance Parties by:

 

(a)           entry onto any premises where Collateral
consisting of tangible personal property may be located;

 

(b)           entry into possession of the Collateral by
any method permitted by law;

 

(c)           sale, grant of options to purchase, or lease
of all or any part of the Collateral;

 

(d)           holding, storing and keeping idle or
operating all or any part of the Collateral;

 

(e)           exercising and enforcing all rights and
remedies of a holder of the Securities and Instruments as if the Security Agent
were the absolute

 

11

 

owner thereof (including, if necessary, causing the Collateral to be
registered in the name of the Security Agent or its nominee if not already
done);

 

(f)            collection of any proceeds arising in respect
of the Collateral;

 

(g)           collection, realization or sale of, or other
dealing with, the accounts;

 

(h)           license or sublicense, whether on an
exclusive or nonexclusive basis, any Intellectual Property for such term and on
such conditions and in such manner as the Security Agent in its sole judgment
determines (taking into account such provisions as may be necessary to protect
and preserve such Intellectual Property);

 

(i)            instruction to any bank which has entered
into a control agreement with the Security Agent to transfer all moneys,
Securities and Instruments held by such depositary bank to an account
maintained with or by the Security Agent;

 

(j)            application of any moneys constituting
Collateral or proceeds thereof in accordance with Section 5.11;

 

(k)           appointment by instrument in writing of a
receiver (which term as used in this Agreement includes a receiver and manager)
or agent of all or any part of the Collateral and removal or replacement from
time to time of any receiver or agent;

 

(l)            institution of proceedings in any court of
competent jurisdiction for the appointment of a receiver of all or any part of
the Collateral;

 

(m)          institution of proceedings in any court of
competent jurisdiction for sale or foreclosure of all or any part of the
Collateral;

 

(n)           filing of proofs of claim and other documents
to establish claims to the Collateral in any proceeding relating to the
Obligor; and

 

(o)           any other remedy or proceeding authorized or
permitted under the Personal Property
Security Act (Ontario) or otherwise by law or equity.

 

Section 3.3            Additional
Rights.

 

In addition to the remedies set forth in
Section 3.2 and elsewhere in this Agreement, whenever the Security
Interest is enforceable, the Security Agent may:

 

(a)           require the Obligor, at the Obligor’s
expense, to assemble the Collateral at a place or places designated by notice
in writing and the Obligor

 

12

 

agrees to so assemble the Collateral immediately upon receipt of such
notice;

 

(b)           require the Obligor, by notice in writing, to
disclose to the Security Agent the location or locations of the Collateral and
the Obligor agrees to promptly make such disclosure when so required;

 

(c)           require the Obligor to provide notice in
writing to any insurer respecting any insurance policy which has been assigned
and/or charged in favour of the Security Agent;

 

(d)           repair, process, modify, complete or
otherwise deal with the Collateral and prepare for the disposition of the
Collateral, whether on the premises of the Obligor or otherwise;

 

(e)           redeem any prior security interest against
any Collateral, procure the transfer of such security interest to itself, or
settle and pass the accounts of the prior mortgagee, chargee or encumbrancer
(any accounts to be conclusive and binding on Obligor);

 

(f)            pay any liability secured by any Encumbrance
against any Collateral (the Obligor will immediately on demand reimburse the
Security Agent for all such payments);

 

(g)           carry on all or any part of the business of
the Obligor and, to the exclusion of all others including the Obligor, enter
upon, occupy and use all or any of the premises, buildings, and other property
of or used by the Obligor for such time as the Security Agent sees fit, free of
charge, and the Security Agent and the Finance Parties are not liable to the
Obligor for any act, omission or negligence in so doing or for any rent,
charges, depreciation or damages incurred in connection with or resulting from
such action;

 

(h)           borrow for the purpose of carrying on the
business of the Obligor or for the maintenance, preservation or protection of
the Collateral and grant a security interest in the Collateral, whether or not
in priority to the Security Interest, to secure repayment;

 

(i)            commence, continue or defend any judicial or
administrative proceedings for the purpose of protecting, seizing, collecting,
realizing or obtaining possession or payment of the Collateral, and give good
and valid receipts and discharges in respect of the Collateral and compromise
or give time for the payment or performance of all or any part of the accounts
or any other obligation of any third party to the Obligor; and

 

13

 

(j)            at any public sale, and to the extent
permitted by law on any private sale, bid for and purchase any or all of the
Collateral offered for sale and upon compliance with the terms of such sale,
hold, retain and dispose of such Collateral without any further accountability
to the Obligor or any other Person with respect to such holding, retention or
disposition, except as required by law. 
In any such sale to the Security Agent, the Security Agent may, for the
purpose of making payment for all or any part of the Collateral so purchased,
use any claim for Secured Obligations then due and payable to it as a credit
against the purchase price.

 

Section 3.4            Exercise
of Remedies.

 

The remedies under Section 3.2 and
Section 3.3 may be exercised from time to time separately or in
combination and are in addition to, and not in substitution for, any other
rights of the Security Agent and the Finance Parties however arising or
created.  The Security Agent and the
Finance Parties are not bound to exercise any right or remedy, and the exercise
of rights and remedies is without prejudice to the rights of the Security Agent
and the Finance Parties in respect of the Secured Obligations including the
right to claim for any deficiency.

 

Section 3.5            Receiver’s
Powers.

 

(1)           Any receiver appointed by
the Security Agent is vested with the rights and remedies which could have been
exercised by the Security Agent in respect of the Obligor or the Collateral and
such other powers and discretions as are granted in the instrument of appointment
and any supplemental instruments.  The
identity of the receiver, its replacement and its remuneration are within the
sole and unfettered discretion of the Security Agent.

 

(2)           Any receiver appointed by
the Security Agent will act as agent for the Security Agent for the purposes of
taking possession of the Collateral, but otherwise and for all other purposes
(except as provided below), as agent for the Obligor.  The receiver may sell, lease, or otherwise
dispose of Collateral as agent for the Obligor or as agent for the Security
Agent as the Security Agent may determine in its discretion.  The Obligor agrees to ratify and confirm all
actions of the receiver acting as agent for the Obligor, and to release and indemnify
the receiver in respect of all such actions.

 

(3)           The Security Agent, in
appointing or refraining from appointing any receiver, does not incur liability
to the receiver, the Obligor or otherwise and is not responsible for any
misconduct or negligence of such receiver.

 

14

 

Section 3.6            Appointment
of Attorney.

 

The Obligor hereby irrevocably constitutes
and appoints the Security Agent (and any officer of the Security Agent) the
true and lawful attorney of the Obligor. 
As the attorney of the Obligor, the Security Agent has the power to
exercise for and in the name of the Obligor with full power of substitution,
upon the occurrence and during the continuance of an Event of Default, any of
the Obligor’s right (including the right of disposal), title and interest in
and to the Collateral including the execution, endorsement, delivery and
transfer of the Collateral to the Security Agent, its nominees or transferees,
and the Security Agent and its nominees or transferees are hereby empowered to exercise
all rights and powers and to perform all acts of ownership with respect to the
Collateral to the same extent as the Obligor might do.  This power of attorney is irrevocable, is
coupled with an interest, has been given for valuable consideration (the
receipt and adequacy of which is acknowledged) and survives, and does not
terminate upon, the bankruptcy, dissolution, winding up or insolvency of the
Obligor.  This power of attorney extends
to and is binding upon the Obligor’s successors and permitted assigns.  The Obligor authorizes the Security Agent to
delegate in writing to another Person any power and authority of the Security
Agent under this power of attorney as may be necessary or desirable in the
opinion of the Security Agent, and to revoke or suspend such delegation.

 

Section 3.7            Dealing
with the Collateral.

 

(1)           The Security Agent and the
Finance Parties are not obliged to exhaust their recourse against the Obligor
or any other Person or against any other security they may hold in respect of
the Secured Obligations before realizing upon or otherwise dealing with the
Collateral in such manner as the Security Agent may consider desirable.

 

(2)           The Security Agent and the
Finance Parties may grant extensions or other indulgences, take and give up securities,
accept compositions, grant releases and discharges and otherwise deal with the
Obligor and with other Persons, sureties or securities as they may see fit
without prejudice to the Secured Obligations, the liability of the Obligor or
the rights of the Security Agent and the Finance Parties in respect of the
Collateral.

 

(3)           Except as otherwise
provided by law or this Agreement, the Security Agent and the Finance Parties
are not (i) liable or accountable for any failure to collect, realize or obtain
payment in respect of the Collateral, (ii) bound to institute proceedings for
the purpose of collecting, enforcing, realizing or obtaining payment of the
Collateral or for the purpose of preserving any rights of any Persons in
respect of the Collateral, (iii) responsible for any loss occasioned by any
sale or other dealing with the Collateral or by the retention

 

15

 

of or failure to sell or otherwise deal
with the Collateral, or (iv) bound to protect the Collateral from depreciating
in value or becoming worthless.

 

Section 3.8            Standards
of Sale.

 

Without prejudice to the ability of the
Security Agent to dispose of the Collateral in any manner which is commercially
reasonable, the Obligor acknowledges that:

 

(a)           the Collateral may be disposed of in whole or
in part;

 

(b)           the Collateral may be disposed of by public
auction, public tender or private contract, with or without advertising and
without any other formality;

 

(c)           any assignee of such Collateral may be the
Security Agent, a Finance Party or a customer of any such Person;

 

(d)           any sale conducted by the Security Agent will
be at such time and place, on such notice and in accordance with such
procedures as the Security Agent, in its sole discretion, may deem
advantageous;

 

(e)           the Collateral may be disposed of in any
manner and on any terms necessary to avoid violation of applicable law
(including compliance with such procedures as may restrict the number of
prospective bidders and purchasers, require that the prospective bidders and
purchasers have certain qualifications, and restrict the prospective bidders
and purchasers to Persons who will represent and agree that they are purchasing
for their own account for investment and not with a view to the distribution or
resale of the Collateral) or in order to obtain any required approval of the
disposition (or of the resulting purchase) by any governmental or regulatory
authority or official;

 

(f)            a disposition of the Collateral may be on
such terms and conditions as to credit or otherwise as the Security Agent, in
its sole discretion, may deem advantageous; and

 

(g)           the Security Agent may establish an upset or
reserve bid or price in respect of the Collateral.

 

Section 3.9            Dealings
by Third Parties.

 

(1)           No Person dealing with the
Security Agent, any of the Finance Parties or an agent or receiver is required
to determine (i) whether the Security Interest has become enforceable, (ii)
whether the powers which such Person is purporting to exercise have become
exercisable, (iii) whether any money remains due to

 

16

 

the Security Agent or the Finance Parties
by the Obligor, (iv) the necessity or expediency of the stipulations and
conditions subject to which any sale or lease is made, (v) the propriety or
regularity of any sale or other dealing by the Security Agent or any Finance
Party with the Collateral, or (vi) how any money paid to the Security Agent or
the Finance Parties has been applied.

 

(2)           Any bona fide purchaser of
all or any part of the Collateral from the Security Agent or any receiver or
agent will hold the Collateral absolutely, free from any claim or right of
whatever kind, including any equity of redemption, of the Obligor, which it
specifically waives (to the fullest extent permitted by law) as against any
such purchaser together with all rights of redemption, stay or appraisal which
the Obligor has or may have under any rule of law or statute now existing or
hereafter adopted.

 

Section 3.10         Registration
Rights.

 

If the Security Agent determines to
exercise its right to sell any or all of the Securities that are Collateral,
and if in the opinion of the Security Agent it is necessary or advisable to
have any such Securities:

 

(a)           qualified for distribution by prospectus
pursuant to the applicable securities legislation in any or all provinces and
territories of Canada, the Obligor will cause the issuer thereof to (i) use its
best efforts to file, and obtain a receipt from the applicable securities
regulatory authorities, for a preliminary and final prospectus offering for
sale such number of Securities as the Security Agent directs; and (ii) execute
and deliver, and cause the directors and officers of such issuer to execute and
deliver, all such certificates, instruments and documents, and do or cause to
be done all such other acts as may be, in the opinion of the Security Agent,
necessary or advisable to qualify such Securities for distribution by
prospectus pursuant to the applicable securities legislation in any or all
provinces of Canada; or

 

(b)           sold or registered under the provisions of
the U.S. Securities Act of 1933,
as amended, the Obligor will cause the issuer thereof to (i) execute and
deliver, and cause the directors and officers of such issuer to execute and
deliver, all such instruments and documents, and do or cause to be done all
such other acts as may be, in the opinion of the Security Agent, necessary or
advisable to register the Securities pledged hereunder, or that portion thereof
to be sold, under the provisions of the U.S.
Securities Act of 1933, as amended, (ii) use its best efforts to
cause the registration statement relating thereto to become effective and to
remain effective for a period of one year from the date of the first public
offering of the Securities pledged hereunder, or that

 

17

 

portion thereof to be sold, and (iii) make all amendments thereto
and/or to the related prospectus which, in the opinion of the Security Agent,
are necessary or advisable, all in conformity with the requirements of the U.S. Securities Act of 1933, as amended,
and the rules and regulations applicable thereto.

 

The Obligor agrees to cause such issuer to comply with
the provisions of the securities legislation in effect in any or all of the
provinces of Canada, the U.S. Securities Act
of 1933, as amended, and the securities or “Blue Sky” laws of any
jurisdictions outside Canada, in each case, which the Security Agent
designates.

 

ARTICLE 4

REPRESENTATIONS, WARRANTIES AND COVENANTS

 

Section 4.1            General
Representations, Warranties and Covenants.

 

The Obligor represents and warrants and
covenants and agrees, acknowledging and confirming that the Security Agent and
each Finance Party is relying on such representations, warranties, covenants
and agreements, that:

 

(a)           Continuous Perfection.  Schedule
      
sets out the
Obligor’s place of business or, if more than one, the Obligor’s chief executive
office.  Such place of business or chief
executive office, as the case may be, has been located at such address for the
60 days immediately preceding the date of this Agreement.  Schedule        also sets out the address at
which the books and records of the Obligor are located, the address at which
senior management of the Obligor are located and conduct their deliberations
and make their decisions with respect to the business of the Obligor and the
address from which the invoices and accounts of the Obligor are issued.  The Obligor will not change the location of
any of these items, people or addresses without providing at least 30 days
prior written notice to the Security Agent. 
The Obligor will not change its name (including any French form of its
name) in any manner without providing at least 30 days prior written notice to
the Security Agent.

 

(b)           Securities and Instruments.

 

(i)            Schedule        lists all Securities and
Instruments owned or held by the Obligor on the date of this Agreement.

 

(ii)           Securities and Instruments that are
Collateral have been, where applicable, duly and validly issued and acquired
and are fully

 

18

 

paid and non-assessable.  Schedule
       sets out, for each class of
Securities listed in the schedule, the percentage amount that such Securities
represent of all issued and outstanding Securities of that class.

 

(iii)          Except as described in Schedule       , no transfer restrictions apply
to the Securities and Instruments listed in Schedule        except for those described in Schedule
      . 
The Obligor has delivered to the Security Agent copies of all
shareholder, partnership or trust agreements applicable to each issuer of such
Securities and Instruments which are in the Obligor’s possession or control.

 

(iv)          No Person has or will have any written or oral
option, warrant, right, call, commitment, conversion right, right of exchange
or other agreement or any right or privilege (whether by law, pre-emptive or
contractual) capable of becoming an option, warrant, right, call, commitment,
conversion right, right of exchange or other agreement to acquire any right or
interest in any of the Securities and Instruments that are Collateral.

 

(v)           The Securities and Instruments that are
Collateral constitute, where applicable, the legal, valid and binding obligation
of the obligor of such Securities and Instruments, enforceable in accordance
with their terms, subject only to any limitation under applicable laws relating
to (i) bankruptcy, insolvency, fraudulent conveyance, arrangement,
reorganization or creditors’ rights generally, and (ii) the discretion that a
court may exercise in the granting of equitable remedies.

 

(vi)          Such Securities and the proceeds from them
are not subject to any prior Encumbrance or any agreement purporting to grant
to any third party a Encumbrance on the property or assets of the Obligor which
would include the Securities other than Permitted Encumbrances.  The Security Agent is entitled to all the
rights, priorities and benefits afforded by the Personal Property Security Act (Ontario) or other relevant
personal property securities legislation as enacted in any relevant
jurisdiction to perfect security interests in respect of such Collateral.

 

(c)           Status of Accounts Collateral. 
The Obligor will maintain books and records pertaining to the Collateral
in such detail, form and scope as

 

19

 

the Security Agent reasonably requires, and keep all originals of the
chattel paper which evidence accounts at locations specified on Schedule       . 
The Obligor will immediately notify the Security Agent if any account in
excess of $100,000 arises out of contracts with any Governmental Entity, and
execute any instruments and take any steps required by the Security Agent in
order that all moneys due or to become due under the contract are assigned to
the Security Agent and notice of such assignment is given to the Governmental
Entity.  The Obligor will also
immediately notify the Security Agent if any account is with an account debtor
located outside of Canada.

 

(d)           Additional Security Perfection and Protection of
Security Interest.  The Obligor will grant to the Security Agent,
for the benefit of the Finance Parties, security interests, assignments,
mortgages, charges, hypothecations and pledges in such property and undertaking
of the Obligor that is not subject to a valid and perfected first ranking
security interest (subject only to Permitted Encumbrances) constituted by the
Security Documents, in each relevant jurisdiction as determined by the Security
Agent.  The Obligor will perform all
acts, execute and deliver all agreements and documents and take such other
steps as are requested by the Security Agent at any time to register, file,
signify, publish, perfect, maintain, protect, and enforce the Security Interest
including: (i) executing, recording and filing of financing or other
statements, and paying all taxes, fees and other charges payable, (ii) placing
notations on its books of account to disclose the Security Interest, (iii)
delivering acknowledgements, confirmations and subordinations that may be
necessary to ensure that the Security Documents constitute a valid and
perfected first ranking security interest (subject only to Permitted
Encumbrances), and (iv) delivering opinions of counsel in respect of matters
contemplated by this paragraph.  The
documents and opinions contemplated by this paragraph must be in form and
substance satisfactory to the Security Agent.

 

(e)           Insurance.  The
Obligor shall use its reasonable best efforts to procure that the Security
Agent is named as an additional insured and first loss payee with respect to
each insurance policy maintained by the Obligor and by each of its affiliates.

 

20

 

Section 4.2            Representations,
Warranties and Covenants Concerning Intellectual Property.

 

The Obligor represents and warrants and
covenants and agrees, acknowledging and confirming that the Security Agent and
each Finance Party is relying on such representations, warranties, covenants
and agreements, that:

 

(a)           Schedule        lists all Registrable
Intellectual Property that is owned by the Obligor on the date of this
Agreement.

 

(b)           All Registrable Intellectual Property of the
Obligor is valid, subsisting, unexpired and enforceable, has not been abandoned
and does not infringe the Intellectual Property rights of any other Person.

 

(c)           The Obligor will take all reasonable and
necessary steps, including in any proceeding before the Canadian Intellectual
Property Office or any similar Governmental Entity of any jurisdiction, to
maintain and pursue each application (and to obtain the relevant registration)
and to maintain each registration of the material Registrable Intellectual
Property, including, without limitation, filing of applications for renewal,
affidavits of use and affidavits of incontestability.

 

(d)           In the event that any material Intellectual
Property of the Obligor is infringed, misappropriated or diluted by a third
party, the Obligor will (i) take such actions as the Obligor reasonably deems
appropriate under the circumstances to protect such Intellectual Property and
(ii) if such Intellectual Property is of material economic value, promptly
notify the Security Agent after it learns thereof and sue for infringement,
misappropriation or dilution, to seek injunctive relief where appropriate and
to recover any and all damages for such infringement, misappropriation or
dilution.

 

(e)           Immediately upon the request of the Security
Agent, the Obligor will furnish the Security Agent in writing the description
of all Registrable Intellectual Property or applications for Registrable
Intellectual Property of the Obligor. 
The Obligor will deliver to the Security Agent a copy of the certificate
of registration of, or application for, such Registrable Intellectual Property
with a Confirmation of Security Interest in the form of Schedule        in respect of such Registrable
Intellectual Property confirming the assignment for security of such
Registrable Intellectual Property to the Security Agent and immediately make
all such filings, registrations and recordings as are necessary or appropriate
to perfect the Security

 

21

 

Interest granted to the Security Agent in the Registrable Intellectual
Property.

 

ARTICLE 5

GENERAL

 

Section 5.1            Notices.

 

Any notices, directions or other
communications provided for in this Agreement must be in writing and given in
accordance with the Facilities Agreement.

 

Section 5.2            Discharge.

 

(1)           The Security Interest shall
be discharged upon (i) the Secured Liabilities being discharged in full and
none of the Finance Parties being under any further actual or contingent
obligation to make Advances or provide other financial accommodations to the
Obligor or any other person under the Finance Documents, or (ii) the Obligor
ceasing to be both a Borrower and a Guarantor subject to, and in accordance
with, the Facilities Agreement; provided however, for greater certainty, that
if the Obligor has not become a Guarantor under the Facilities Agreement by the
time the Obligor ceases to be a Borrower under the Facilities Agreement,
assuming all other conditions to the discharge of the Security Interest have
been so satisfied, the Security Interest will be so discharged.  Upon discharge of the Security Interest and
at the request and expense of the Obligor, the Security Agent will execute and
deliver to the Obligor such financing statements and other documents or
instruments as the Obligor may reasonably require and the Security Agent will
redeliver to the Obligor, or as the Obligor may otherwise direct the Security
Agent, any Collateral in its possession.

 

(2)           In connection with (a) any Permitted Disposal of any Collateral, (b) any
sale or other disposition of any Collateral otherwise permitted by the
Facilities Agreement, (c) any sale or other disposition of any Collateral where
the Security Agent has consented to the disposal pursuant to the Facilities
Agreement, (d) any sale or any other disposition of any Collateral pursuant to
a merger, consolidation, reorganisation, winding-up, securitisation, Take-Out
Financing or sale and leaseback permitted by the Facilities Agreement to the
extent necessary to ensure such merger, consolidation, reorganisation,
winding-up, securitisation, Take-Out Financing or sale and leaseback take
place, or (e) the creation of any Encumbrance permitted by paragraph (w) of the
definition of Permitted Encumbrances in the Facilities Agreement, the Security
Agent shall, at the request and cost of the Obligor, release such Collateral,
provided that, (i) to the extent that the disposal of such Collateral is a
Permitted Disposal or a sale or disposition otherwise permitted by the

 

22

 

Facilities
Agreement, such Collateral shall be declared to be automatically released from
the Security Interest hereof with effect from the day of such disposal and the
Security Agent shall do all such acts which are reasonably requested by the
Obligor in order to release such Collateral, and (ii) in the case of part
(e) of this Section 5.2(2), such release of such Collateral from the
Security Interest hereof shall not extend to any Collateral which forms part of
the A1 Borrowing Base, the A2 Borrowing Base or the C Borrowing Base.

 

(3)           In connection with security over Shareholder Subordinated Loans, in the
event that such a Shareholder Subordinated Loan is converted into share capital
or other equity interests of the Parent as permitted under the Facilities
Agreement, such Shareholder Subordinated Loan shall be declared to be
automatically released from the Security Interest hereof with effect from the
day of such conversion and the Security Agent shall do all such acts which are
reasonably requested by the Obligor in order to release such Shareholder Subordinated
Loan, provided that such release shall be contemporaneous with the granting of
a new Security Interest over such share capital or other equity interests of
the Parent in favour of the Security Agent (and the Finance Parties to the
extent required by applicable local law) on substantially the same terms as the
pledge of Securities herein.

 

Section 5.3            No
Merger, Survival of Representations and Warranties.

 

This Agreement does not operate by way of
merger of any of the Secured Obligations and no judgment recovered by the
Security Agent or any of the Finance Parties will operate by way of merger of,
or in any way affect, the Security Interest, which is in addition to, and not
in substitution for, any other security now or hereafter held by the Security Agent
and the Finance Parties in respect of the Secured Obligations.  The representations, warranties and covenants
of the Obligor in this Agreement survive the execution and delivery of this
Agreement and any advances under the Facilities Agreement.  Notwithstanding any investigation made by or
on behalf of the Security Agent or the Finance Parties the covenants,
representations and warranties continue in full force and effect.

 

Section 5.4            Further
Assurances.

 

The Obligor will do all acts and things and
execute and deliver, or cause to be executed and delivered, all documents and
instruments that the Security Agent may require and take all further steps
relating to the Collateral or any other property or assets of the Obligor that
the Security Agent may require for (i) protecting the Collateral, (ii)
perfecting the Security Interest, and (iii) exercising all powers, authorities
and discretions conferred upon the Security Agent.  After the Security Interest becomes
enforceable, the Obligor will do all acts and things and execute and deliver
all documents and instruments that the Security Agent may require for

 

23

 

facilitating the sale or other disposition of the
Collateral in connection with its realization.

 

Section 5.5            Supplemental
Security.

 

This Agreement is in addition to, without
prejudice to and supplemental to all other security now held or which may
hereafter be held by the Security Agent or the Finance Parties.

 

Section 5.6            Successors
and Assigns.

 

This Agreement is binding on the Obligor,
its successors and assigns, and enures to the benefit of the Security Agent,
the Finance Parties and their respective successors and assigns.  This Agreement may be assigned by the
Security Agent without the consent of, or notice to, the Obligor, to such
Person as the Security Agent may determine and, in such event, such Person will
be entitled to all of the rights and remedies of the Security Agent as set
forth in this Agreement or otherwise.  In
any action brought by an assignee to enforce any such right or remedy, the
Obligor will not assert against the assignee any claim or defence which the
Obligor now has or may have against the Security Agent or any of the Finance
Parties.  The Obligor may not assign,
transfer or delegate any of its rights or obligations under this Agreement
without the prior written consent of the Security Agent which may be
unreasonably withheld.

 

Section 5.7            Amalgamation.

 

The Obligor acknowledges and agrees that in
the event it amalgamates with any other corporation or corporations, it is the
intention of the parties that the Security Interest (i) subject to
Section 2.4, extends to: (A) all of the property and undertaking that any
of the amalgamating corporations then owns, (B) all of the property and
undertaking that the amalgamated corporation thereafter acquires, (C) all of
the property and undertaking in which any of the amalgamating corporations then
has any interest and (D) all of the property and undertaking in which the
amalgamated corporation thereafter acquires any interest; and (ii) secures the
payment and performance of all debts, liabilities and obligations, present or
future, direct or indirect, absolute or contingent, matured or unmatured, at
any time or from time to time due or accruing due and owing by or otherwise
payable by each of the amalgamating corporations and the amalgamated
corporation to the Finance Parties in any currency, however or wherever
incurred, and whether incurred alone or jointly with another or others and whether
as principal, guarantor or surety and whether incurred prior to, at the time of
or subsequent to the amalgamation.  The
Security Interest attaches to the additional collateral at the time of
amalgamation and to any collateral thereafter owned or acquired by the
amalgamated corporation when such becomes owned or is acquired.  Upon any such amalgamation, the defined term “Obligor” means, collectively, each of the
amalgamating corporations and the amalgamated corporation, the defined term “Collateral” means all of the

 

24

 

property and undertaking and interests described in
(i) above, and the defined term “Secured
Obligations” means the obligations described in (ii) above.

 

Section 5.8            Severability.

 

If any court of competent jurisdiction from
which no appeal exists or is taken, determines any provision of this Agreement
to be illegal, invalid or unenforceable, that provision will be severed from
this Agreement and the remaining provisions will remain in full force and
effect.

 

Section 5.9            Amendment.

 

This Agreement may only be amended,
supplemented or otherwise modified by written agreement executed by the
Security Agent (with the consent of the required Finance Parties as stipulated
by the Facilities Agreement) and the Obligor.

 

Section 5.10         Waivers,
etc.

 

(1)           No consent or waiver by the
Security Agent or the Finance Parties in respect of this Agreement is binding
unless made in writing and signed by an authorized officer of the Security
Agent (with the consent of the required Finance Parties as stipulated by the
Facilities Agreement).  Any consent or
waiver given under this Agreement is effective only in the specific instance
and for the specific purpose for which given. 
No waiver of any of the provisions of this Agreement constitutes a
waiver of any other provision.

 

(2)           A failure or delay on the
part of the Security Agent or the Finance Parties in exercising a right under
this Agreement does not operate as a waiver of, or impair, any right of the
Security Agent or the Finance Parties however arising.  A single or partial exercise of a right on
the part of the Security Agent or the Finance Parties does not preclude any
other or further exercise of that right or the exercise of any other right by
the Security Agent or the Finance Parties.

 

Section 5.11         Application
of Proceeds of Security.

 

All monies collected by the Security Agent
upon the enforcement of the Security Agent’s or the Finance Parties’ rights and
remedies under the Security Documents and the Encumbrances created by them
including any sale or other disposition of the Collateral, together with all
other monies received by the Security Agent and the Finance Parties under the
Security Documents, will be applied, following the application thereof to pay any
unsatisfied Euro MTN Obligations, as provided in the Intercreditor Deed.  To the extent any other Finance Document
requires proceeds of collateral under such Finance Document to be applied in
accordance with the provisions of this Agreement, the Security Agent or holder
under such other Finance Document shall apply such proceeds in accordance with
this Section.

 

25

 

Section 5.12         Conflict.

 

In the event of any conflict between the provisions of
this Agreement and the provisions of the Facilities Agreement which cannot be
resolved by both provisions being complied with, the provisions contained in
the Facilities Agreement will prevail to the extent of such conflict.

 

Section 5.13         Governing
Law.

 

(1)           This Agreement will be
governed by, interpreted and enforced in accordance with the laws of the
Province of Ontario and the federal laws of Canada applicable therein.

 

(2)           The Obligor irrevocably
attorns and submits to the exclusive jurisdiction of any court of competent
jurisdiction of the Province of Ontario sitting in Toronto, Ontario in any
action or proceeding arising out of or relating to this Agreement.  The Obligor irrevocably waives objection to
the venue of any action or proceeding in such court or that such court provides
an inconvenient forum.  Nothing in this
Section limits the right of the Security Agent to bring proceedings against the
Obligor in the courts of any other jurisdiction.

 

(3)           The Obligor hereby
irrevocably consents to the service of any and all process in any such action
or proceeding by the delivery of copies of such process to the Obligor at 5403
Eglinton Avenue West, Etobicoke, Ontario, M9C 5K6.  Nothing in this Section affects the right of
the Security Agent to serve process in any manner permitted by law.

 

Section 5.14         Application
of Saskatchewan Law.

 

(1)           The Land Contracts (Actions) Act
(Saskatchewan) shall have no application to any action, as defined therein,
with respect to this Agreement.

 

(2)           The Limitation of Civil Rights Act (Saskatchewan)
shall have no application to (i) this Agreement, (ii) any mortgage, charge or
other security for the payment of money made, given or created by this
Agreement, (iii) any agreement or instrument renewing or extending or
collateral to this Agreement or any mortgage, charge or other security referred
to or mentioned in (ii) above, or (iv) the rights, powers or remedies of the
Security Agent under this Agreement or any mortgage, charge, other security,
agreement or instrument referred to or mentioned in (ii) or (iii) above.

 

26

 

Section 5.15         English
Language.

 

The
parties to this Agreement have agreed that this Agreement as well as any
document or instrument relating to it be drawn up in English only but without
prejudice to any such document or instrument which may from time to time be
drawn up in French only or in both French and English.  Les parties aux présentes ont convenu que la
présente Convention ainsi que tous autres actes ou documents s’y rattachant
soient rédigés en anglais seulement mais sans préjudice à tous tels actes ou
documents qui pourraient à l’occasion être rédigés en français seulement ou à
la fois en anglais et en français.

 

27

 

IN WITNESS WHEREOF the Obligor has executed
this Agreement.

 

 

	
   

  	
  HERTZ CANADA LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Per:

  	
  /s/ Authorized Signatory

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory

  

 

28

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}]]