Document:

10.2 WTH_A&RAdministrationAgreement

Exhibit 10.2

	
	
	ADMINISTRATION AGREEMENT

Dated as of August 26, 2010
As Amended & Restated as of May 12, 2014 

WTH CAR RENTAL ULC 
as Rental ULC
- and -
WTH FUNDING LIMITED PARTNERSHIP 
as Administrator
- and -
BNY TRUST COMPANY OF CANADA 
as Indenture Trustee

	
			
	 
	TABLE OF CONTENTS
	 

	 
	 
	Page

	Article 1  DEFINITIONS
	2

	1.1
	Definitions
	2

	Article 2  ADMINISTRATION
	3

	2.1
	Appointment of Administrator
	3

	2.2
	Administrator Authorization
	3

	2.3
	Appointment of Administrator as Attorney-in-Fact
	3

	Article 3  DUTIES AND COVENANTS
	3

	3.1
	Duties and Covenants of the Administrator
	3

	Article 4  FEE
	9

	4.1
	Fee
	9

	4.2
	Incentives
	10

	4.3
	Goods and Services Tax and Harmonized Sales Tax Registration
	10

	4.4
	Sales and Transfer Taxes
	10

	4.5
	Goods and Services Tax and Harmonized Sales Tax Election
	10

	Article 5  TERMINATION
	11

	5.1
	Termination and Resignation
	11

	5.2
	Administrator Termination Event
	11

	5.3
	Rights and Remedies upon Administrator Termination Event
	12

	5.4
	Designation of a Replacement Administrator
	12

	5.5
	Replacement Administrator Fee
	13

	Article 6  GENERAL
	13

	6.1
	Assignability
	13

	6.2
	Amendment and Restatement
	13

	6.3
	Governing Law
	13

	6.4
	Headings etc.
	13

	6.5
	Severability
	13

	6.6
	Notices, etc.
	14

	6.7
	No Waivers
	15

	6.8
	No Petition
	15

	6.9
	Binding Effect
	15

	6.1
	Counterparts
	16

ADMINISTRATION AGREEMENT
MEMORANDUM OF AGREEMENT made as of May 12, 2014. 
B E T W E E N:
WTH CAR RENTAL ULC 
as “Rental ULC”
- and -
WTH FUNDING LIMITED PARTNERSHIP 
as “Funding LP” or the “Administrator”
- and -
BNY TRUST COMPANY OF CANADA 
as “Indenture Trustee”

RECITALS:
WHEREAS each of Rental ULC and the Indenture Trustee, as indenture trustee, have entered into an Indenture (as defined below) to provide for, amongst other things, the issuance of Notes; 
AND WHEREAS Rental ULC has, and is required to perform, certain obligations and duties pursuant to the Indenture and certain other Transaction Documents;
AND WHEREAS Rental ULC desires the Administrator to perform certain of its duties under the Indenture and certain other Transaction Documents, and the Administrator has agreed to perform certain of Rental ULC’s duties and obligations under the Indenture and certain other Transaction Document;
AND WHEREAS Funding LP has sold and assigned to Rental ULC its fleet of Vehicles used in its car rental business;
AND WHEREAS Rental ULC desires the services of the Administrator to manage its fleet of Vehicles, including the acquisition and disposition of Vehicles owned by Rental ULC, and the Administrator has agreed to manage Rental ULC’s fleet, including the acquisition and disposition of Vehicles owned by Rental ULC;
AND WHEREAS each of Rental ULC, the Administrator and the Indenture Trustee executed and delivered an Administration Agreement dated as of August 26, 2010 (such Agreement as amended by a first global amendment dated as of February 17, 2011 and a fourth global amendment dated as of August 21, 2013, being referred to herein as the “Initial Agreement”) to provide for the Administrator to manage Rental ULC’s fleet of Vehicles;

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AND WHEREAS each of Rental ULC, the Administrator and the Indenture Trustee wishes to further amend and restate the Initial Agreement in its entirety in accordance with this Agreement;
AND WHEREAS all things necessary to make this Agreement a valid agreement of Rental ULC, the Administrator and the Indenture Trustee in accordance with its terms, have been done;
NOW THEREFORE, this Agreement witnesses that in consideration of the premises and the covenants and agreements of the parties herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by each of the parties, the parties hereby covenant and agree as follows:
Article 1
DEFINITIONS 
		
	1.1
	Definitions

Unless otherwise defined herein, terms used herein have the meanings assigned to them in the Indenture.  In this Agreement: 
“Administration Fee” has the meaning given to it in Section 4.1.
“Administrator Termination Event” has the meaning given to it in Section 5.2.
“Agreement” means this Administration Agreement, as originally executed, as amended and restated and as it may be further amended, supplemented, restated or otherwise modified from time to time by one or more agreements supplemental hereto entered into pursuant to the applicable provisions hereof.
“General Partner” means Avis, Budget or Zipcar, each a general partner of Funding LP.
“Indenture” means the trust indenture, dated as of August 26, 2010, as amended and restated as of May 12, 2014, between Rental ULC and the Indenture Trustee, as it has been, and may further be, amended, restated, supplemented or otherwise modified from time to time.
“Replacement Administrator” means any Person appointed as a successor Administrator pursuant to Section 5.4 following the occurrence of an Administrator Termination Event.
“Taxation Year” means each taxation year of Rental ULC the first of which shall end on August 31, 2010 and thereafter each taxation year shall commence on September 1 and end on August 31 of the following calendar year, subject to the provisions of the Income Tax Act. 
“Taxable Income” means, in respect of any Taxation Year, the amount of taxable income determined in accordance with the provisions of the Income Tax Act (including the amount of any taxable capital gain or allowable capital loss from the disposition of each capital property of Rental ULC).
“Termination Notice” has the meaning given to it in Section 5.3(a).

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Article 2     
ADMINISTRATION
		
	2.1
	Appointment of Administrator

Funding LP is designated as the “Administrator” and hereby agrees to perform the duties and obligations of the Administrator pursuant to the terms hereof in consideration for the Administration Fee.  The Administrator may also subcontract with any Person to perform all or any of the duties and obligations of the Administrator hereunder.  The Administrator shall remain liable for all such duties and obligations performed by any subcontractor on its behalf.  Payment of the Administration Fee shall be subject to any restrictions contained in the Indenture Supplements.  
		
	2.2
	Administrator Authorization

The Administrator shall be authorized to make deposits to and, prior to the occurrence of an Administrator Termination Event that has not been waived, to make transfers and withdrawals from, each of the Master Rental Account, the Master Vehicle Account, the VAT Account and each Series Account, in each case solely in accordance with the Transaction Documents.  After the occurrence of (i) an Administrator Termination Event that has not been waived, or (ii) an Event of Default, only the Indenture Trustee or such other Person as the Indenture Trustee may designate shall be authorized to make any transfers or withdrawals from the Master Rental Account, the Master Vehicle Account, the VAT Account and any Series Account.
		
	2.3
	Appointment of Administrator as Attorney-in-Fact

Subject to the Transaction Documents, including this Agreement, Rental ULC hereby appoints the Administrator as Rental ULC’s attorney-in-fact, with full authority in the place and stead of and in the name of Rental ULC or otherwise, from time to time in its discretion or as required by this Agreement or any other Transaction Document to take such actions on behalf of Rental ULC as it may deem necessary or advisable to comply with or effect the purposes of this Agreement or any other Transaction Document.  
Article 3     
DUTIES AND COVENANTS
		
	3.1
	Duties and Covenants of the Administrator 

		
	(a)
	General Standard of Care.

In its capacity as the Administrator hereunder, and in furtherance of its obligations under Section 2.1, the Administrator hereby covenants and agrees to, in conducting its obligations hereunder:
		
	(i)
	exercise its powers and discharge its duties under this Agreement and the other Transaction Documents as Administrator, in good faith and in the best interest of Rental ULC and in connection therewith, exercise the degree of 

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care, diligence and skill that a reasonably prudent Person would exercise in comparable circumstances;
		
	(ii)
	in conducting its administrative obligations hereunder have each of its General Partners utilize its own employees, business premises, owned or leased, and communications and computer systems and these shall not be, and shall not be held out to be, the employees, premises or systems of Rental ULC; 

		
	(iii)
	comply with any directions given by Rental ULC or the Indenture Trustee in connection with the performance by the Administrator of its duties under this Agreement and the other Transaction Documents;

		
	(iv)
	comply with all Applicable Laws and obtain and maintain in good standing all licences, permits, qualifications and approvals from any and all Governmental Authorities in any jurisdiction in which it carries on business except to the extent that a failure to so comply, obtain or maintain is not reasonably likely to have a Material Adverse Effect in respect of itself, its General Partners, or Rental ULC.

		
	(b)
	Certain Duties with Respect to the Indenture.  

In its capacity as the Administrator hereunder, and in furtherance of its obligations under Section 2.1, the Administrator hereby covenants and agrees to perform the following duties on behalf of Rental ULC under the Indenture:
		
	(i)
	to determine and calculate the Proceeds of Disposition Series Transfer Amount;

		
	(ii)
	to make all authorizations, determinations, deliveries and requests to be made by Rental ULC pursuant to Article 3 and Section 13.5 of the Indenture in connection with the Notes;

		
	(iii)
	to take all actions necessary to obtain and maintain a perfected Lien on and Security Interest in the Collateral in favour of the Indenture Trustee in accordance with Section 4.2(k) of the Indenture;

		
	(iv)
	to make all filings, registrations and recordings and to deliver all notices required by Section 4.2(l) and 4.2(m) of the Indenture and the provisions of any Indenture Supplement;

		
	(v)
	to deposit, or cause the deposit of, all Rental Revenues into the Master Rental Account pursuant to Section 5.2(a) of the Indenture and the provisions of any Indenture Supplement;

		
	(vi)
	to use commercially reasonable efforts to cause all Proceeds of Disposition, including in respect of any Rental ULC Vehicles sold pursuant to Section 2.3 

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of the Master Vehicle Lease Agreement, to be deposited directly into the Master Vehicle Account and to cause any Proceeds of Disposition not directly deposited, to be deposited to the Master Vehicle Account pursuant to Section 5.2(b) of the Indenture and the provisions of any Indenture Supplement;
		
	(vii)
	to deposit, or cause the deposit of, any and all Contributions to the Master Vehicle Account or the Master Rental Account pursuant to Section 5.2(d) of the Indenture and the provisions of any Indenture Supplement;  

		
	(viii)
	when required to do so pursuant to Section 5.2(e) of the Indenture, to deposit all amounts collected on behalf of Rental ULC, on behalf of a Governmental Authority in respect of VAT as a result of the lease, rental or sale of Vehicles by Rental ULC or the provision of any other goods or services by Rental ULC and any amount received by Rental ULC from a Governmental Authority as a refund of VAT to the VAT Account pursuant to Section 5.2(e) of the Indenture and the provisions of any Indenture Supplement;

		
	(ix)
	when required to do so pursuant to Section 5.2(e) of the Indenture, to disburse from the VAT Account any amounts owed to a Governmental Authority in respect of VAT collected by Rental ULC and any amount owed to a Person as VAT in respect of the purchase of Vehicles or any other goods or services acquired by Rental ULC pursuant to Section 5.2(e) of the Indenture and the provisions of any Indenture Supplement;

		
	(x)
	to pay VAT payable upon the purchase of Rental ULC Vehicles from the prescribed account pursuant to Section 5.2(f) of the Indenture and the provisions of any Indenture Supplement;

		
	(xi)
	to deposit VAT collected upon the sale of Rental ULC Vehicles to the prescribed account pursuant to Section 5.2(f) of the Indenture;

		
	(xii)
	to use funds in the Master Rental Account, the Master Vehicle Account, the VAT Account and any Series Account to purchase Eligible Investments for Rental ULC pursuant to Section 5.3 of the Indenture and the provisions of any Indenture Supplement; 

		
	(xiii)
	to transfer funds on deposit in the Master Rental Account to the Master Vehicle Account pursuant to Section 6.1 of the Indenture and the provisions of any Indenture Supplement;

		
	(xiv)
	to withdraw or apply funds on deposit in the Master Vehicle Account to the payment of the purchase price of Vehicles being acquired by Rental ULC and to the payment of Interim Principal Payments pursuant to Section 6.2 of the Indenture and the provisions of any Indenture Supplement;

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	(xv)
	to allocate to each Series of Notes a portion of the Rental Revenues received for the related Settlement Period pursuant to Section 6.3 of the Indenture and the provisions of any Indenture Supplement;

		
	(xvi)
	to allocate to each Series of Notes a portion of the Proceeds of Disposition and Enforcement Proceeds for the previous Settlement Period pursuant to Section 6.4 of the Indenture and the provisions of any Indenture Supplement;

		
	(xvii)
	to use commercially reasonable efforts to dispose of each Rental ULC Vehicle on or before the Maximum Term (as defined in the Master Vehicle Lease Agreement) for such Rental ULC Vehicle pursuant to Section 9.1(m) of the Indenture;

		
	(xviii)
	to deposit to the Master Vehicle Account all amounts received by the Administrator as a result of the enforcement of the Security Interest in respect of the Collateral pursuant to Section 10.12 of the Indenture;

		
	(xix)
	to make all requests, appointments and acceptances and to deliver all notices required to be delivered by Rental ULC pursuant to Section 11.10, Section 11.11 and Section 11.12 of the Indenture in connection with the resignation and removal and appointment of a successor Indenture Trustee;

		
	(xx)
	to prepare and file all tax returns and forms, and to prepare and distribute to Noteholders all tax information, in each case as required of Rental ULC by Applicable Law, pursuant to Section 11.13 of the Indenture;

		
	(xxi)
	to prepare and furnish names and addresses of Noteholders pursuant to Section 12.1 of the Indenture;

		
	(xxii)
	to make any request or rule required to be made by Rental ULC in connection with meetings of Noteholders pursuant to Section 12.3 of the Indenture;

		
	(xxiii)
	to file with the Indenture Trustee copies of the annual report and of information, documents and other reports (or copies of such portions of any of the foregoing) that Rental ULC may be required to file with the Securities Regulatory Authorities pursuant to Section 12.4(a) of the Indenture;

		
	(xxiv)
	to file with the Indenture Trustee and the Securities Regulatory Authorities, such additional information, documents and reports in respect of Rental ULC as required pursuant to Section 12.4(b) of the Indenture; and

		
	(xxv)
	to transmit by mail to all Noteholders, summaries of any information, documents and reports as required pursuant to Section 12.4(c) of the Indenture.

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	(c)
	Certain Duties with Respect to the Master Vehicle Lease Agreement

In its capacity as the Administrator hereunder, and in furtherance of its obligations under Section 2.1, the Administrator hereby covenants and agrees to perform the following duties on behalf of Rental ULC under the Master Vehicle Lease Agreement:
		
	(i)
	deliver Leased Vehicles (as defined in the Master Vehicle Lease Agreement) to any third party purchasers thereof and use commercially reasonable efforts to cause all Proceeds of Disposition in respect of such Leased Vehicles to be deposited directly into the Master Vehicle Account and to cause any Proceeds of Disposition not directly deposited, to be deposited to the Master Vehicle Account, pursuant to Section 2.3 of the Master Vehicle Lease Agreement;

		
	(ii)
	prepare and deliver to Funding LP and the Indenture Trustee, on the Estimation Rent Payment Date (as defined in the Master Vehicle Lease Agreement) in respect of each Settlement Period, an Estimation Report in respect of such Settlement Period pursuant to Section 4.2 of the Master Vehicle Lease Agreement.

		
	(d)
	Certain Duties with Respect to Administering the Fleet of Rental ULC Vehicles.  

In its capacity as the Administrator hereunder, and in furtherance of its obligations under Section 2.1, the Administrator hereby covenants and agrees to:
		
	(i)
	administer, on behalf of Rental ULC, the acquisition of Vehicles by Rental ULC, including the negotiation, amendment, administration, enforcement, and performance of all Repurchase Agreements and other Vehicle acquisition agreements; 

		
	(ii)
	administer, on behalf of Rental ULC, the disposition of Vehicles by Rental ULC pursuant to Repurchase Agreements or otherwise, including the disposition of Vehicles by Rental ULC to a third party;

		
	(iii)
	arrange for, on behalf of Rental ULC, (a) the delivery of Rental ULC Vehicles leased to Funding LP under the Master Vehicle Lease Agreement; (b) the delivery and return of Program Vehicles to the related Manufacturer’s official auction or other facility designated by such Manufacturer pursuant to its respective Repurchase Agreement; and (c) the delivery of Non-Program Vehicles disposed of by Rental ULC to a third party;

		
	(iv)
	subject to the terms of any Licensee Vehicle Assignment Agreement with respect to the Vehicles acquired pursuant thereto, ensure that title to each Vehicle bought for Rental ULC is registered in the name of Rental ULC;  

		
	(v)
	on behalf of Rental ULC, enforce the terms of any Repurchase Agreements against each Manufacturer, including the terms relating to payment of all 

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amounts payable by a Manufacturer under its respective Repurchase Agreement;
		
	(vi)
	indemnify and hold harmless Rental ULC against (i) any obligation of Rental ULC to reimburse a Manufacturer for any allowance, discount or rebate paid by a Manufacturer to the Administrator in connection with the sale of Vehicles to Rental ULC, and (ii) any failure by the Administrator to perform its obligations under this Agreement; and

		
	(vii)
	maintain records relating to Rental ULC Vehicles leased under the Master Vehicle Lease Agreement, including records relating to Rental Revenues and Proceeds of Disposition and at all times, maintain its computer files or other records in respect of Rental ULC Vehicles in a manner such that Rental ULC Vehicles shall be specifically identified, and shall, upon request, make available within a reasonable time, which time in any event shall not exceed three (3) Business Days, to Rental ULC at the office of the Administrator, or of a General Partner, any computer programs and other records necessary to make such identification.

		
	(e)
	Certain Duties with Respect to the Liquidation Agent Agreement

In its capacity as the Administrator hereunder, and in furtherance of its obligations under Section 2.1, the Administrator hereby covenants and agrees to terminate the specified power of attorney of Rental ULC upon written notice to such effect from the Indenture Trustee pursuant to Section 2.8(b)(ii) of the Liquidation Agent Agreement.
		
	(f)
	Additional Duties

In its capacity as the Administrator hereunder, and in furtherance of its obligations under Section 2.1, the Administrator hereby covenants and agrees to:
		
	(i)
	administer, perform, monitor, or supervise the performance of such other activities by or on behalf of Rental ULC in connection with the Collateral and the Transaction Documents as are not covered by any of the foregoing provisions and as are expressly agreed to under any of the other Transaction Documents to which the Administrator is a party;

		
	(ii)
	in accordance with the directions of the Indenture Trustee or Rental ULC, administer, perform, monitor, or supervise the performance of such other activities by or on behalf of Rental ULC in connection with the Collateral and the Transaction Documents as are not covered by any of the foregoing provisions and as are expressly requested by the Indenture Trustee or Rental ULC and are reasonably within the capability of the Administrator;

		
	(iii)
	maintain its existence as an Ontario limited partnership in good standing; and

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	(iv)
	promptly upon becoming aware thereof, notify Rental ULC, the Indenture Trustee and the Rating Agencies of any failure to perform or any defaults of which it is aware in respect of any party under any of the Transaction Documents.

Article 4     
FEE
		
	4.1
	Fee

In consideration for its services hereunder, Rental ULC shall pay to the Administrator a fee in an amount to be determined as follows (the “Administration Fee”):  
		
	(a)
	for each month, a monthly fleet administration fee equal to 20% of Depreciation for the month for all vehicles owned by Rental ULC during that month, and such monthly amount shall be calculated on the 15th day of the month following the month in respect of which the monthly Depreciation is calculated and thus the monthly administration fee is payable, provided however that the total of all amounts payable to the Administrator under this Section 4.1(a) in respect of a Taxation Year shall in no event exceed the amount by which the Taxable Income of Rental ULC prior to the deduction of any amount payable pursuant to this Section 4.1(a) in respect of the Taxation Year exceeds $50,000; and

		
	(b)
	if in any Taxation Year of Rental ULC the Taxable Income of Rental ULC prior to the deduction of any amount payable to the Administrator as an administration fee exceeds the aggregate of all amounts payable as an administration fee in respect of the Taxation Year pursuant to Section 4.1(a) and $50,000, then an amount equal to such excess shall be calculated no later than 60 days after the end of such Taxation Year and shall be payable by Rental ULC to the Administrator as an additional administration fee in respect of the Taxation Year.

The Administration Fee payable pursuant to Section 4.1(a) and 4.1(b) and any related taxes payable pursuant to Section 4.4 shall be paid by Rental ULC to the Administrator at any time after such amounts are calculated, on demand by the Administrator, and shall be payable only out of Unrestricted Funds.  Other than the Administration Fee, the Administrator shall not be entitled to any other payment or compensation in connection with its services hereunder including, without limitation, any recovery of the costs and expenses incurred by it in connection with the performance of its obligations hereunder.  
		
	4.2
	Incentives

All volume and other incentives available and paid by Manufacturers in connection with the purchase of Vehicles by Rental ULC shall be paid to Rental ULC.  
		
	4.3
	Goods and Services Tax and Harmonized Sales Tax Registration

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	(a)
	Funding LP is duly registered under Subdivision (d) of Division V of Part IX of the ETA with respect to GST and HST and under Division I of Chapter VIII of Title I of the QST Act with respect to QST, and its registration numbers are 871686697 and 33473 18225, respectively.

		
	(b)
	Rental ULC is duly registered under Subdivision (d) of Division V of Part IX of the ETA with respect to GST and HST and its registration number is 80815 4652 RT0001.  Rental ULC will be duly registered under Division I of Chapter VIII of Title I of the QST Act effective as of the Closing Date and will provide its related registration number to the Indenture Trustee promptly thereafter.

		
	4.4
	Sales and Transfer Taxes

Rental ULC shall pay to the Administrator all sales and transfer taxes, registration charges and transfer fees, including the GST and HST imposed under Part IX of the ETA and any similar value-added or multi-staged tax imposed under any applicable provincial or territorial legislation, payable by it in respect of the provision of services by the Administrator under this Agreement.
		
	4.5
	Goods and Services Tax and Harmonized Sales Tax Election

Rental ULC and the Administrator shall jointly elect, under subsection 156(1) of Part IX of the ETA, section 334 of the QST Act, and any equivalent or corresponding provision under any applicable provincial or territorial legislation imposing a similar value-added or multi-staged tax, that no tax be payable with respect to the provision of services by the Administrator under this Agreement.  Rental ULC and the Administrator shall make such election(s) in prescribed form containing prescribed information in compliance with the requirements of the applicable legislation.  Rental ULC shall indemnify and save harmless the Administrator from and against any such Tax imposed on Rental ULC as a result of any failure or refusal by any Governmental Authority to accept any such election, and any such indemnity shall be payable by Rental ULC from, and only from, Unrestricted Funds in accordance with the Transaction Documents.
Article 5     
TERMINATION
		
	5.1
	Termination and Resignation

This Agreement may be terminated at any time by Rental ULC upon ten (10) days’ prior written notice to the Administrator and the Indenture Trustee; a copy of such notice to be sent to the Rating Agencies forthwith.  The Administrator shall not resign from the obligations and duties imposed hereunder.
		
	5.2
	Administrator Termination Event

The occurrence of any one or more of the following events shall constitute an “Administrator Termination Event” under this Agreement:
		
	(a)
	the occurrence of an Event of Default; 

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	(b)
	the Administrator making any unauthorized payment from the Master Rental Account, the Master Vehicle Account, the VAT Account or any Series Account and failing to restore such payment within two Business Days of becoming aware of it;

		
	(c)
	the failure by the Administrator to observe any other covenant made herein or in any other Transaction Document on the part of the Administrator which failure is reasonably likely to have a Material Adverse Effect in respect of the Administrator, provided that if such breach of covenant is capable of being remedied, it shall not constitute an Administrator Termination Event unless it remains unremedied for five Business Days after receipt of written notice from the Indenture Trustee or any Noteholder; 

		
	(d)
	the inaccuracy when made of a representation or warranty of the Administrator herein or in any other Transaction Document which inaccuracy is reasonably likely to have a Material Adverse Effect in respect of the Administrator, provided that if such inaccuracy is capable of being remedied, then it shall not constitute an Administrator Termination Event unless it remains unremedied for five Business Days after receipt of written notice from the Indenture Trustee or any Noteholder; 

		
	(e)
	a General Partner failing to pay when due any obligation (the “underlying obligation”) for a sum certain in excess of $20,000,000 and such failure continuing for three Business Days after (i) written notice to the Administrator from the party to whom the underlying obligation is owed if there is no grace period applicable to the underlying obligation or (ii) the expiry of any grace period applicable to the underlying obligation.

		
	5.3
	Rights and Remedies upon Administrator Termination Event

		
	(a)
	Notice of Termination.  If an Administrator Termination Event has occurred and is continuing, either the Indenture Trustee or the Majority Holders of all Senior Notes then Outstanding under the Indenture (treated as one Class), by notice in writing to Rental ULC and the Administrator, may provide a notice (a “Termination Notice”) terminating all rights and obligations of the Administrator hereunder, with effect from and after the applicable termination date specified in such Termination Notice.  

		
	(b)
	Continued Performance.  On and after the receipt by the Administrator of a Termination Notice pursuant to Section 5.3(a), the Administrator shall continue to perform all of its duties under this Agreement until the date specified in the Termination Notice or such other date as may be mutually agreed upon by the Administrator and the Indenture Trustee, subject to the satisfaction of the Rating Agency Condition for each Outstanding Series and Class of Notes.  

		
	5.4
	Designation of a Replacement Administrator

		
	(a)
	Conditions to Appointment.  Upon delivery of a Termination Notice by the Indenture Trustee or Majority Holders under Section 5.3(a), the Indenture Trustee 

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will, upon notice to the Administrator designate, as the Replacement Administrator, any Person selected by the Indenture Trustee who meets industry-wide standards to carry on a vehicle leasing business or administer and liquidate Rental ULC's assets, to succeed the Administrator or any previously appointed Replacement Administrator, provided that in each case any such Person so designated shall agree to assume and perform the duties of the Administrator provided for in this Agreement and the Rating Agency Condition for each Outstanding Series and Class of Notes shall have been satisfied in respect of the designation of such Person; provided further that a Replacement Administrator need not succeed to all of the duties of the Administrator hereunder if so agreed by the Indenture Trustee or the Majority Holders of all Senior Notes then Outstanding and the Rating Agency Condition for each Outstanding Series and Class of Notes has been satisfied.  
		
	(b)
	Transfer of Administering.  Upon the designation of a Replacement Administrator, if any, each Administrator agrees that it will terminate its activities as Administrator hereunder in a manner in which the Indenture Trustee will determine will facilitate the transition of the performance of such activities to the Replacement Administrator and each Administrator shall co-operate with and assist such Replacement Administrator.  Such co-operation shall include (i) access to and transfer of all files and records, and (ii) the transfer or paying over of any Rental ULC money, each as may be in the possession or control of the predecessor, to the Replacement Administrator.  

		
	5.5
	Replacement Administrator Fee

A Replacement Administrator appointed pursuant to Section 5.4 shall be entitled to a reasonable fee for services rendered, such fee to be settled by Rental ULC with the Replacement Administrator, and to be payable in respect of each Settlement Period in arrears.  

Article 6     
GENERAL
		
	6.1
	Assignability

No party to this Agreement may assign any of its rights or obligations under this Agreement without the prior written consent of the other parties and satisfaction of the Rating Agency Condition for each Outstanding Series and Class of Notes provided that, notwithstanding the foregoing, Rental ULC may assign its rights hereunder pursuant to, and in accordance with, the Security Interest. 
		
	6.2
	Amendment and Restatement

This Agreement amends, restates and replaces in its entirety the Initial Agreement, and may be further amended from time to time by a written amendment duly executed and delivered by all parties hereto and, in respect of material amendments and waivers, satisfaction of the Rating Agency Condition for each Outstanding Series and Class of Notes. 

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	6.3
	Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein.  Each of the parties hereto hereby attorns to the non-exclusive jurisdiction of the courts of the Province of Ontario.
		
	6.4
	Headings etc.

The division of this Agreement into sections and other subdivisions and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this Agreement.  The terms “this Agreement,” “hereof,” “hereunder” and similar expressions refer to this Agreement and not to any particular section or other portion hereof and include the recitals and any agreement supplemental hereto.
		
	6.5
	Severability

In the event that one or more of the provisions contained in this Agreement shall be invalid, illegal or unenforceable in any respect under any applicable law, the validity, legality or enforceability of the remaining provisions hereof shall not be affected or impaired thereby.  Each of the provisions of this Agreement is hereby declared to be separate and distinct.
		
	6.6
	Notices, etc.

Any notice, report, payment or demand required or permitted to be given or made hereunder shall be in writing and shall be sufficiently given or made for all purposes if delivered personally or transmitted by fax to the party or to an officer of the other party to whom the same is directed, addressed as follows:
		
	(a)
	if to Rental ULC, addressed to it at:

WTH Car Rental ULC 
c/o Aviscar Inc. 
1 Convair Drive East 
Etobicoke, Ontario 
M9W 6Z9
Attention:    Controller 
Fax No.:    (416) 213-8505
with a copy to:
Avis Budget Car Rental LLC 
6 Sylvan Way 
Parsippany, N.J. 
U.S.A. 07054

- 14 -

Attention:    Treasury 
Fax No.:    (973) 496-3560
and
Attention:    Legal Department 
Fax No.:    (973) 496-3444
		
	(b)
	if to the Administrator, addressed to it at:

WTH Funding Limited Partnership 
c/o Aviscar Inc. 
1 Convair Drive East 
Etobicoke, Ontario 
M9W 6Z9
Attention:    Controller 
Fax No.:    (416) 213-8505
with a copy to:
Avis Budget Car Rental LLC 
6 Sylvan Way 
Parsippany, N.J. 
U.S.A. 07054
Attention:    Treasury 
Fax No.:    (973) 496-3560
and
Attention:    Legal Department 
Fax No.:    (973) 496-3444
		
	(c)
	if to the Indenture Trustee, addressed to it at:

BNY Trust Company of Canada 
320 Bay Street, 11th Floor 
Toronto, Ontario 
M5H 4A6
Attn: Corporate Trust Administration 
Fax: (416) 360-1711
Any such notice that is given by personal delivery shall be deemed to have been received on the day of actual delivery thereof and any notice given by telecopy or fax shall be deemed to have been 

- 15 -

received on the first Business Day after the transmittal thereof.  Any of the parties hereto may change its address or fax number by giving written notice of such change to each of the other parties hereto.
		
	6.7
	No Waivers

No failure on the part of any party hereto to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single exercise or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right.
		
	6.8
	No Petition

Each of the parties hereto covenants and agrees that it shall not institute against, or join any other Person in instituting against, Rental ULC any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding or other proceedings under any Insolvency Legislation, until one year and a day after the last maturing Note issued by Rental ULC is paid.  
		
	6.9
	Binding Effect

This Agreement shall be binding upon and enure to the benefit of the parties hereto and, to the extent permitted hereunder, their respective successors and assigns.
		
	6.10
	Counterparts

This Agreement may be executed in any number of counterparts with the same effect as if all parties hereto had all signed the same document.  All counterparts and adopting instruments shall be construed together and shall constitute one and the same agreement.    
[INTENTIONALLY LEFT BLANK]

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first above written. 
	
				
	 
	 
	WTH CAR RENTAL ULC

	By:
	/s/ Rochelle Tarlowe

	 
	Name:    Rochelle Tarlowe

	 
	Title:    Vice President and Treasurer

	 
	 

	By:
	 

	 
	Name:

	 
	Title:

	
				
	 
	 
	WTH FUNDING LIMITED PARTNERSHIP, by its General Partner, AVISCAR INC.

	By:
	/s/ Rochelle Tarlowe

	 
	Name:    Rochelle Tarlowe

	 
	Title:    Vice President and Treasurer

	 
	 

	By:
	 

	 
	Name:

	 
	Title:

	
				
	 
	 
	BNY TRUST COMPANY OF CANADA, in its capacity as Indenture Trustee and not in its individual capacity

	By:
	/s/ J. Steven Broude

	 
	Name:    J. Steven Broude

	 
	Title:    Authorized Signature

	 
	 

	By:
	 

	 
	Name:

	 
	Title:10.3 WTH_A&RMasterMotorVehicleLeaseAgreement

Exhibit 10.3

	
	
	MASTER MOTOR VEHICLE 
LEASE AGREEMENT
Dated as of August 26, 2010
As Amended & Restated as of May 12, 2014

WTH CAR RENTAL ULC 
as Rental ULC
- and -
WTH Funding Limited Partnership 
as Funding LP
-and -
BNY TRUST COMPANY OF CANADA 
as Indenture Trustee

	
			
	 
	Table of Contents
	 

	 
	 
	Page

	Article 1 DEFINITIONS
	2

	1.1
	Definitions
	2

	Article 2 LEASE OF VEHICLES
	4

	2.1
	Lease of Vehicles
	4

	2.2
	Non-Liability of Rental ULC
	5

	2.3
	Rental ULC’s Right to Cause Leased Vehicles to be Sold
	5

	2.4
	Nature of Lease
	5

	2.5
	Acknowledgement of Security Interest
	5

	Article 3 TERM
	6

	3.1
	Vehicle Term
	6

	Article 4 RENT AND CHARGE
	6

	4.1
	Obligation to Pay Rent
	6

	4.2
	Estimation Reports
	6

	4.3
	Payment of Rent
	6

	4.4
	Net Lease
	7

	4.5
	Goods and Services Tax and Harmonized Sales Tax Election
	8

	4.6
	Tax and Accounting Treatment of Agreement
	8

	Article 5 INSURANCE
	8

	5.1
	Insurance Representation
	8

	5.2
	Insurance Covenant
	9

	5.3
	Self Insurance
	9

	5.4
	Risk of Loss Borne by Funding LP
	9

	5.5
	Casualty Payments
	9

	Article 6 LEASED VEHICLE USE
	9

	6.1
	Use of Leased Vehicle
	9

	6.2
	Liens
	10

	6.3
	Non-Disturbance
	10

	6.4
	Maintenance and Repairs
	10

	Article 7 REPRESENTATIONS
	10

	7.1
	Representations and Warranties of Funding LP
	10

	7.2
	Representations and Warranties of Rental ULC
	13

	Article 8 COVENANTS
	13

	8.1
	Covenants of Funding LP
	13

	Article 9 DEFAULT AND REMEDIES
	13

	9.1
	Lease Defaults
	13

	9.2
	Effect of Lease Default
	14

	Article 10 GENERAL
	15

	10.1
	Assignability
	15

	10.2
	Governing Law
	15

	10.3
	Headings etc.
	15

	10.4
	Severability
	15

	
			
	10.5
	Notices, etc.
	15

	10.6
	No Waivers
	17

	10.7
	No Proceedings
	17

	10.8
	Limitation of Liability
	17

	10.9
	Binding Effect
	17

	10.10
	Counterparts
	17

	10.11
	Amendment and Restatement
	18

MASTER MOTOR VEHICLE LEASE AGREEMENT
MEMORANDUM OF AGREEMENT made as May 12, 2014. 
B E T W E E N:
WTH CAR RENTAL ULC 
as “Rental ULC”
- and -
WTH FUNDING LIMITED PARTNERSHIP 
as “Funding LP”
- and -
BNY TRUST COMPANY OF CANADA 
as “Indenture Trustee”
RECITALS:
WHEREAS Rental ULC, Funding LP and the Indenture Trustee executed and delivered a Master Motor Vehicle Lease Agreement dated as of August 26, 2010 (such Agreement as amended by a first global amendment dated as of February 17, 2011, a fourth global amendment dated as of August 21, 2013 and a fifth global amendment dated as of February 27, 2014, being referred to herein as the “Initial Agreement”) to provide for the leasing by Funding LP from Rental ULC of Program Vehicles and Non-Program Vehicles for use in the daily rental car business of Funding LP.
AND WHEREAS the Indenture Trustee on behalf of itself and the other Secured Parties, has a Security Interest in the Vehicles leased hereunder and such Secured Parties provide financing to Rental ULC in connection with the acquisition of the Vehicles leased hereunder;
AND WHEREAS each of Rental ULC, Funding LP and the Indenture Trustee wishes to further amend and restate the Initial Agreement in its entirety in accordance with this Agreement.
AND WHEREAS all things necessary to make this Agreement a valid agreement of Rental ULC, Funding LP and the Indenture Trustee in accordance with its terms, have been done.
NOW THEREFORE, this Agreement witnesses that in consideration of the premises and the covenants and agreements of the parties herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by each of the parties, the parties hereby covenant and agree as follows:
Article 1
DEFINITIONS 
		
	1.1
	Definitions

- 2 -

Terms used herein which are defined in the Indenture, either directly or by reference therein, have the meanings assigned to them in the Indenture unless otherwise defined herein.  In this Agreement: 
“Additional Rent” has the meaning given to it in Section 6.4.  
“Agreement” means this Master Motor Vehicle Lease Agreement, as originally executed, as amended and restated and as it may be further amended, supplemented, restated or otherwise modified from time to time by one or more agreements supplemental hereto entered into pursuant to the applicable provisions hereof.
“Avis or Budget System Member” means a licensee of the general partners of Funding LP or one of the Affiliates of the general partners of Funding LP authorized to operate its own rental vehicle business in Canada under the “Avis”, “Budget” or “Zipcar” name.
“Best” means A.M. Best Company, Inc.
“Estimation Rent Payment” means, in respect of a Remittance Period, an amount equal to the estimated Aggregate Cost of Funds Amount for the Remittance Date related to such Remittance Period, as set forth in the Estimation Report for such Remittance Period.
“Estimation Rent Payment Date” means, in respect of each Remittance Period, the first Business Day of such Remittance Period.  
“Estimation Report” means a monthly report provided by the Administrator to Funding LP substantially in the form of Schedule “A”.
“Funding LP Business Revenues” all monetary receipts (other than sales, value added and other similar Taxes collected on behalf of a Governmental Authority) received by Funding LP pursuant to its Vehicle rental and leasing business from: 
		
	(a)
	time and kilometre charges of customers of Funding LP in connection with the rental of Leased Vehicles by Funding LP to such customers;

		
	(b)
	the sale of fuel to customers of Funding LP and by customers of Funding LP choosing the prepaid gas option in connection with the rental by such customer of a Leased Vehicle from Funding LP; 

		
	(c)
	charges incurred by customers of Funding LP in respect of additional products and services relating to the renting by such customer of a Leased Vehicle from Funding LP, including such monetary receipts arising from child safety seats, ski racks, additional driver approvals and similar products and services;

		
	(d)
	charges incurred by customers of Funding LP returning a Leased Vehicle rented from Funding LP to a rental location other than the rental location from which such Leased Vehicle was originally rented; 

- 3 -

		
	(e)
	charges incurred by customers of Funding LP as a result of the pass through to such customers of: (i) airport concession fees imposed on Funding LP by certain airports in respect of revenues of Funding LP being generated at such airports; and (ii) other concession fees imposed on Funding LP by certain governmental agencies or municipalities in respect of revenues of Funding LP; and

		
	(f)
	fees for driving record/insurance verification, application and membership fees; damage fees and damage fee waiver fees; cancellation fees; fees or penalties imposed on customers and other fees related to the rental of Leased Vehicles;

in each case as provided for in the relevant Funding LP Business Vehicle Rental Agreement whether in the form of remittances from credit card or debit card issuers, cash payments, bank drafts, cheques, wire transfers or otherwise.
“Funding LP Business Vehicle Rental Agreement” means the agreement pursuant to which a general partner of Funding LP, as agent for an undisclosed principal (namely Funding LP), rents Leased Vehicles to retail, commercial and leisure customers substantially in the form of the agreements used by such general partner for such purposes prior to the date hereof, or in the case of Zipcar, prior to the date that it became a general partner of Funding LP. 
“Indenture” means the trust indenture, dated as of August 26, 2010, as amended and restated as of May 12, 2014, between Rental ULC and the Indenture Trustee, as it has been, and may further be, amended, restated, supplemented or otherwise modified from time to time.
“Indenture Trustee” means BNY Trust Company of Canada, in its capacity as Indenture Trustee.  
“Lease Default” has the meaning given to it in Section 9.1. 
“Lease Expiration Date” shall mean the latest of (a) the Leased Vehicle Lease Expiration Date for the last Leased Vehicle leased hereunder; and (b) the date on which all amounts payable hereunder have been paid in full.
“Leased Vehicle” has the meaning given to it in Section 2.1.
“Leased Vehicle Lease Commencement Date” has the meaning given to it in Section 3.1.
“Leased Vehicle Lease Expiration Date” has the meaning given to it in Section 3.1.
“Leased Vehicle Term” has the meaning given to it in Section 3.1. 
“Maximum Term” means in respect of a Leased Vehicle, (i) that is neither a box truck nor an Excluded Vehicle, a term of 48 months from the Leased Vehicle Lease Commencement Date in respect of such Leased Vehicle, (ii) that is a box truck (including an Excluded Vehicle that is a box truck), a term of 84 months from the Leased Vehicle Lease Commencement Date in respect of such Leased Vehicle; and (iii) that is an Excluded Vehicle that is not a 

- 4 -

box truck, a term of 60 months from the Leased Vehicle Lease Commencement Date in respect of such Leased Vehicle.
“Remittance Date Rent Payment” means, in respect of a Remittance Period, an amount equal to the amount, if any, by which (x) the Estimation Rent Payment in respect of such Remittance Period, is less than (y) the aggregate of:
		
	(i)
	the Aggregate Cost of Funds Amount for the Remittance Date related to such Remittance Period; 

		
	(ii)
	actual Depreciation for the prior Settlement Period; 

		
	(iii)
	Rental ULC Expenses for the prior Settlement Period; and

		
	(iv)
	the aggregate of any Additional Rent accruing due for the Remittance Date related to the prior Settlement Period.

“Rent” means all amounts payable hereunder as Estimation Rent Payments and Remittance Date Rent Payments. 
“Term” means the period commencing on the date hereof and ending on the Lease Expiration Date. 
Article 2
LEASE OF VEHICLES
		
	2.1
	Lease of Vehicles

From time to time, subject to the terms and provisions hereof, Rental ULC agrees to lease to Funding LP and Funding LP agrees to lease from Rental ULC, subject to the terms hereof:
		
	(a)
	the Vehicles identified in Schedule “A” to the Funding/Rental Purchase Agreement; and

		
	(b)
	any other Vehicles that from time to time become Rental ULC Vehicles. 

(The Vehicles in Sections 2.1(a) and (b) being collectively referred to as the “Leased Vehicles.”)
		
	2.2
	Non-Liability of Rental ULC

Rental ULC shall not be liable to Funding LP for any failure or delay in obtaining Leased Vehicles or making delivery thereof.  As between Rental ULC and Funding LP, acceptance of the Leased Vehicles shall constitute Funding LP’s acknowledgement and agreement that Funding LP has fully inspected such Leased Vehicles, that such Leased Vehicles are in good order and condition and are of the manufacture, design, specifications and capacity requested by Funding LP, that Funding LP is satisfied that the same are suitable for use and that Rental ULC is not a manufacturer or engaged in the sale or distribution of Leased Vehicles, and has not made and does not hereby make any representation, warranty or covenant with respect to merchantability, condition, quality, durability 

- 5 -

or suitability of such Leased Vehicles in any respect or in connection with or for the purposes or uses of Funding LP, or any other representation, warranty or covenant of any kind or character, express or implied, with respect thereto.  In no event shall Rental ULC be liable for any inconveniences, loss of profits or any other consequential, incidental or special damages resulting from any defect in or any theft, damage, loss or failure of any Vehicle and there shall be no abatement of Rent or other amounts payable hereunder because of the same. 
		
	2.3
	Rental ULC’s Right to Cause Leased Vehicles to be Sold

Rental ULC shall have the right, subject to the terms of any applicable Repurchase Agreement in the case of Program Vehicles, to sell Leased Vehicles to a third party.  If a sale of a Leased Vehicle is arranged, then Rental ULC or the Administrator on its behalf shall deliver such Leased Vehicle to the purchaser thereof.
		
	2.4
	Nature of Lease

Rental ULC and Funding LP hereby acknowledge and agree that: (i) this Agreement is intended as an agreement to lease only, (ii) title to the Leased Vehicles will at all times remain in the name of Rental ULC or, to the extent permitted by the terms of a Licensee Vehicle Assignment Agreement with respect to the Leased Vehicles acquired pursuant thereto, Funding LP or any such other Person as nominee, custodian and bare trustee for the benefit of Rental ULC, and (iii) Funding LP or any such other Person, if acting in such capacity as nominee, custodian and bare trustee, will have no rights or interest in the related Leased Vehicles whatsoever other than, in the case of Funding LP, the rights of possession and use as provided herein.
		
	2.5
	Acknowledgement of Security Interest

Funding LP acknowledges that it takes its lease of each Leased Vehicle under this Agreement subject to the Security Interest granted in favour of the Indenture Trustee under the terms of the Indenture.
Article 3 
TERM
		
	3.1
	Vehicle Term

The “Leased Vehicle Lease Commencement Date” for each Leased Vehicle shall mean the earlier of (a) the day Funding LP obtains possession of such Leased Vehicle; and (b) the date that funds are expended or allocated by Rental ULC to acquire such Leased Vehicle.  The “Leased Vehicle Term” with respect to each Leased Vehicle shall extend from the Leased Vehicle Lease Commencement Date through the earliest of (i) the date on which funds in respect of a sale of such Leased Vehicle are first deposited in the Master Vehicle Account; (ii) if such Leased Vehicle is written off as a result of a Casualty, the date funds in the amount of the Current Book Value thereof at the time of such Casualty are deposited in the Master Vehicle Account; (iii) the date the Indenture Trustee declares the lease of such Leased Vehicle to be terminated following an Event of Default and receipt by the Indenture Trustee, under Section 10.3 of the Indenture, of Enforcement Instructions to realize upon the Security Interest in the Collateral; (iv) the return by Funding LP of 

- 6 -

such Leased Vehicle to Rental ULC pursuant to Section 9.2; and (v) the Maximum Term applicable to each Leased Vehicle.  The earliest of such five dates described in the foregoing clauses (i) through (v) being referred to as the “Leased Vehicle Lease Expiration Date”).  
Article 4 
RENT AND CHARGE
		
	4.1
	Obligation to Pay Rent

Funding LP will pay Rent at the times and the amounts as set forth in this Article 4 during the Term.  
		
	4.2
	Estimation Reports

Rental ULC or the Administrator on its behalf shall deliver to Funding LP and the Indenture Trustee, on the Estimation Rent Payment Date in respect of each Settlement Period, an Estimation Report in respect of such Settlement Period.  
		
	4.3
	Payment of Rent

On the Estimation Rent Payment Date in respect of each Settlement Period, Funding LP shall pay Rent to Rental ULC in an amount equal to the Estimation Rent Payment in respect of such Settlement Period.  On the Remittance Date in respect of each Settlement Period, Funding LP shall pay Rent to Rental ULC in an amount equal to the Remittance Date Rent Payment in respect of such Settlement Period.  All payments of Rent shall be in immediately available funds and shall be paid by direct transfer to the Master Rental Account.  
		
	4.4
	Net Lease

This Agreement shall be a net lease, and Funding LP’s obligations to pay all Rent hereunder shall be absolute and unconditional, and shall not be subject to any abatement, setoff, counterclaim, deduction or reduction for any reason whatsoever.  The obligations and liabilities of Funding LP hereunder shall in no way be released, discharged or otherwise affected (except as may be expressly provided herein) for any reason, including, without limitation:  
		
	(a)
	any defect in the condition, merchantability, quality or fitness for use of the Leased Vehicles or any part thereof;

		
	(b)
	any damage to, removal, abandonment, salvage, loss, scrapping or destruction of curtailment of or interference with any use of the Leased Vehicles or any part thereof; 

		
	(c)
	any restriction, prevention or curtailment of or interference with any use of the Leased Vehicles or any part thereof;

		
	(d)
	any defect in or any Lien on title to the Leased Vehicles or any part thereof; 

		
	(e)
	any change, waiver, extension, indulgence or other action or omission in respect of any obligation or liability of Funding LP or Rental ULC;

- 7 -

		
	(f)
	any bankruptcy, insolvency, reorganization, composition, adjustment, dissolution, liquidation or other like proceeding relating to Funding LP, Rental ULC or any other Person, or any action taken with respect to this Agreement by any trustee or receiver of any Person mentioned above, or by any court; 

		
	(g)
	any claim that Funding LP has or might have against any Person, including, without limitation, Rental ULC; 

		
	(h)
	any failure on the part of Funding LP or Rental ULC to perform or comply with any of the terms hereof or of any other agreement;

		
	(i)
	any invalidity or unenforceability or disaffirmance of this Agreement or any provision hereof or any of the other Transaction Documents or any provision of any thereof, in each case whether against or by Funding LP or otherwise;

		
	(j)
	any insurance premiums payable by Funding LP with respect to the Leased Vehicles; or

		
	(k)
	any other occurrence whatsoever, whether similar or dissimilar to the foregoing, whether or not Funding LP shall have notice or knowledge of any of the foregoing and whether or not foreseen or foreseeable.  

This Agreement shall be noncancelable by Funding LP and, except as expressly provided herein, Funding LP, to the extent permitted by law, waives all rights now or hereafter conferred by statute or otherwise to quit, terminate or surrender this Agreement, or to any diminution or reduction of Rent payable by Funding LP hereunder.  All payments by Funding LP made hereunder shall be final (except to the extent of adjustments provided for herein), absent manifest error and, except as otherwise provided herein, Funding LP shall not seek to recover any such payment or any part thereof for any reason whatsoever, absent manifest error.  If for any reason whatsoever this Agreement shall be terminated in whole or in part by operation of law or otherwise except as expressly provided herein, Funding LP shall nonetheless pay all Rent due hereunder at the time and in the manner that such payments would have become due and payable under the terms of this Agreement as if it had not been terminated in whole or in part.  All covenants and agreements of Funding LP herein shall be performed at its cost, expense and risk unless expressly otherwise stated. 
		
	4.5
	Goods and Services Tax and Harmonized Sales Tax Election

Rental ULC and Funding LP shall jointly elect, under subsection 156(1) of Part IX of the ETA, section 334 of the QST Act, and any equivalent or corresponding provision under any applicable provincial or territorial legislation imposing a similar value added or multi-staged tax, that no tax be payable with respect to supplies made under this Agreement.  Rental ULC and Funding LP shall make such election(s) in prescribed form containing prescribed information in compliance with the requirements of the applicable legislation.  
		
	4.6
	Tax and Accounting Treatment of Agreement

- 8 -

Rental ULC and Funding LP hereby acknowledge and agree that this Agreement is a “true lease” and agree to treat this Agreement as a lease for all purposes, including tax, accounting and otherwise.  In addition, Rental ULC and Funding LP hereby each agree to take no position on their respective tax returns and filings contrary to the position that Rental ULC is the owner of the Leased Vehicles for Canadian federal income tax purposes.

Article 5 
INSURANCE
		
	5.1
	Insurance Representation

Funding LP represents and warrants that the casualty loss and third party liability insurance carried by Funding LP in respect of its business, business premises and the Leased Vehicles, is as described in Schedule “B” and also provides for notice from the applicable insurer to Rental ULC in the event of any coverage lapse or pending lapse.  Such insurance is provided by third party underwriters whose claims paying ability or similar measure is rated not lower than A (low) (or such lower rating in respect of which the Rating Agency Condition for each Outstanding Series and Class of Notes may be satisfied) or the equivalent by as many of DBRS, S&P, Moody's and Best's as rate it or, if such ability or other measure is not rated by at least one of DBRS, S&P, Moody's and Best's, whose profitability ranking has the highest rating from T.R.A.C. Insurance Services Ltd.  Funding LP, at its own expense and for no additional consideration, has maintained adequate reserves to cover the first $1,000,000 of claims relating to third party liability and collisions in respect of the Leased Vehicles, which amount is not insured by a third party underwriter.
		
	5.2
	Insurance Covenant

Funding LP shall at its own expense provide insurance for its business and Vehicles, including the Leased Vehicles, in respect both of losses and third party liability, as set out in Schedule “B” and shall pay all premiums on such insurance on a timely basis and shall maintain fully funded all escrow or trust accounts required to be funded by the terms of such insurance.  Third party underwriters of such insurance shall meet the credit standard set out in Section 5.1.  Funding LP shall indemnify and hold Rental ULC harmless against all claims, losses and expenses within the deductible amounts (including, for greater certainty, self insured amounts) under such insurance policies. 
		
	5.3
	Self Insurance

Funding LP will, at its own expense and for no consideration, continue to maintain adequate reserves to cover the first $1,000,000 of claims relating to third party liability and collisions in respect of the Leased Vehicles, which amount is not insured by a third party underwriter. 
		
	5.4
	Risk of Loss Borne by Funding LP

Upon delivery of each Leased Vehicle to Funding LP, as between Funding LP and Rental ULC, Funding LP assumes and bears the risk of loss, damage, theft, taking, destruction, attachment, 

- 9 -

seizure, confiscation or requisition with respect to such Leased Vehicle, however caused or occasioned, and all other risks and liabilities, including personal injury or death and property damage, arising with respect to such Leased Vehicle or the manufacture, acceptance, rejection, delivery, leasing, subleasing, possession, use, inspection, registration, operation, condition, maintenance, repair, or storage of such Leased Vehicle, howsoever arising. 
		
	5.5
	Casualty Payments

For each Settlement Period in which a Casualty in respect of one or more Leased Vehicles occurs, Funding LP shall deposit the insurance (including self insurance) payments in respect of such Casualty in an amount, equal to the Current Book Value of each such Leased Vehicle at the time of such Casualty, directly into the Master Vehicle Account as promptly as possible, and in any event, no later than the related Remittance Date.
Article 6 
LEASED VEHICLE USE
		
	6.1
	Use of Leased Vehicle

During the Term, Funding LP may use each Leased Vehicle in its regular course of business.
		
	6.2
	Liens

Except for Permitted Encumbrances, Funding LP shall keep all Leased Vehicles free of all Liens arising during the Term.  Rental ULC may grant Liens in the Leased Vehicles without consent of Funding LP, including, without limitation, the Security Interest.  
		
	6.3
	Non-Disturbance

So long as Funding LP satisfies its obligations hereunder and no Lease Default has occurred, its quiet enjoyment, possession and use of the Leased Vehicles will not be disturbed during the Term, subject to the rights of the Indenture Trustee under the Indenture. 
		
	6.4
	Maintenance and Repairs

Funding LP shall pay for all maintenance and repairs to keep the Leased Vehicles in good working order and condition, and Funding LP will maintain such Leased Vehicles as required in order to keep the Manufacturer’s warranty in force and, in the case of Program Vehicles to keep such Vehicles eligible for repurchase under the applicable Repurchase Agreement.  Funding LP will pay, or cause to be paid, all usual and routine expenses incurred in the use and operation of the Leased Vehicles, including, but not limited to, fuel, lubricants and coolants.  Funding LP shall pay to Rental ULC as additional rent (“Additional Rent”) on each Remittance Date in respect of each Settlement Period an amount equal to the lesser of:
		
	(a)
	the amount, if any, by which (x) the aggregate of the Current Book Values of all Leased Vehicles disposed of during such Settlement Period which were not eligible for repurchase under the applicable Repurchase Agreement as a result of the failure 

- 10 -

of Funding LP to comply with such Repurchase Agreement, exceeds (y) the aggregate of the Proceeds of Disposition for such Leased Vehicles; and 
		
	(b)
	the amount, if any, by which Losses on Disposition for such Settlement Period exceeded Gains on Disposition for such Settlement Period.  

Article 7 
REPRESENTATIONS
		
	7.1
	Representations and Warranties of Funding LP

On each Closing Date and on each date on which there is an increase in the Outstanding Principal Amount of any Series, Funding LP represents and warrants to Rental ULC and the Indenture Trustee that:
		
	(a)
	Organization.  Funding LP is a valid and subsisting limited partnership formed under the laws of the Province of Ontario and has full power and authority to own or lease its property, to carry on its business as now being conducted by it and to enter into this Agreement and to perform its obligations hereunder.  Funding LP is duly qualified, licensed or registered to do business in each province of Canada in which it owns or leases any material property or conducts any material business.

		
	(b)
	Authorization.  This Agreement has been duly authorized, executed and delivered by Funding LP and is a legal, valid and binding obligation of Funding LP, enforceable against Funding LP in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency and other laws affecting the rights of creditors generally and except that equitable remedies may be granted only in the discretion of a court of competent jurisdiction.

		
	(c)
	No Violation.  The execution and delivery of this Agreement by Funding LP and the consummation of the transactions herein provided for will not result in the breach or violation of any of the provisions of, or constitute a default under, or conflict with or cause the acceleration of any obligation of Funding LP under (i) any Contract to which Funding LP is a party or by which it is or its properties are bound; (ii) any provision of the Funding LP Partnership Agreement or any resolutions of the board of directors (or any committee thereof) or shareholders of the partners of Funding LP; (iii) any judgment, decree, order or award of any court, governmental body or arbitrator having jurisdiction over Funding LP; (iv) any licence, permit, approval, consent or authorization held by Funding LP necessary to the operation of Funding LP’s business; or (v) any Applicable Law, which breach, violation, default, conflict or acceleration  (except in the case of (ii) above) could reasonably be expected to have a material adverse effect on the ability of Funding LP to carry out its obligations hereunder.

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	(d)
	No Litigation, Etc.  There are no actions, suits, proceedings or investigations commenced or, to the knowledge of Funding LP after due inquiry, contemplated or threatened against or affecting Funding LP at law or in equity before or by any governmental department, commission, board, bureau, court, agency, arbitrator or instrumentality, domestic or foreign, of any kind, which in any case would prevent or hinder the consummation of the transactions contemplated by this Agreement or which could reasonably be expected to have a material adverse effect on the ability of Funding LP to carry out its obligations hereunder.

		
	(e)
	Compliance with Applicable Laws.  Funding LP has conducted and is conducting its business in compliance with all Applicable Laws of each jurisdiction in which any material portion of its business is carried on and has all required licences, permits, registrations and qualifications under the laws of each such jurisdiction to carry on its business, except to the extent that failure to so conduct its business or to have such licences, permits, registrations or qualifications could not reasonably be expected to have a material adverse effect on the ability of Funding LP to carry out its obligations hereunder.

		
	(f)
	Communications and Computer Systems. The communications and computer systems of Funding LP, or the general partners of Funding LP, are adequate for the conduct of Funding LP’s business and the use thereof by Funding LP, or the general partners of Funding LP, does not infringe the rights of any other Person.

		
	(g)
	No Strikes, Work Stoppages, Etc.  The general partners of Funding LP are not experiencing any strike, work stoppage, slow-down or other material interference with or impairment of its business by labour, and, to Funding LP’s knowledge, no such strike, work stoppage, slow-down or other material interference or impairment is threatened.  The general partners of Funding LP are not a party to or the subject of any unfair labour practice complaint and is not a party to or the subject of any prosecution, order or complaint relating to employment standards or human rights before any governmental agency.

		
	(h)
	Consents and Approvals.  There is no requirement to make any filing with, give any notice to or to obtain a licence, permit, certificate, registration, authorization, consent or approval of, any governmental or regulatory authority as a condition to the lawful consummation of the transactions contemplated by this Agreement, except for notifications, consents and approvals which have been given or obtained, as the case may be.  There is no requirement under any Contract to which Funding LP is a party or by which it is bound to give any notice to, or to obtain the consent or approval of, any party to such Contract, relating to the consummation or transactions contemplated by this Agreement, except for notifications, consents and approvals which have been given or obtained, as the case may be.

		
	(i)
	Solvency, Etc.  Funding LP is not insolvent and has not: (i) admitted its inability to pay its debts generally as they become due or failed to pay its debts generally as they become due; (ii) proposed a compromise or arrangement to its creditors; (iii) had 

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any petition for a receiving order or bankruptcy filed against it; (iv) consented to have itself declared bankrupt or wound up; (v) consented to have a receiver, liquidator or trustee appointed over any part of its assets; (vi) had any encumbrancer take possession of any of its property; (vii) had any execution or distress become enforceable or become levied upon any of its property which could reasonably be expected to have a material adverse effect on the ability of Funding LP to carry out its obligations hereunder; or (viii) had any unsatisfied judgment outstanding against it for more than 15 days which could reasonably be expected to have a material adverse effect on the ability of Funding LP to carry out its obligations hereunder.
		
	(j)
	Residency.  Funding LP is a Canadian partnership within the meaning of the Income Tax Act.

		
	(k)
	VAT Registrations.  Funding LP is duly registered under Subdivision (d) of Division V of Part IX of the ETA with respect to GST and HST and under Division I of Chapter VIII of Title I of the QST Act with respect to QST, and its registration numbers are 871686697 and 33473 18225, respectively.

		
	(l)
	Full Disclosure.  Neither this Agreement nor any document to be delivered by Funding LP nor any certificate, report, statement or other document furnished by Funding LP to Rental ULC, or the Indenture Trustee or any Noteholder in connection with the negotiation of this Agreement contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact necessary to make the statements contained herein or therein not misleading in light of the circumstances under which the statements were made.

		
	7.2
	Representations and Warranties of Rental ULC

Rental ULC represents and warrants to Funding LP and the Indenture Trustee that (x) Rental ULC is duly registered under Subdivision (d) of Division V of Part IX of the ETA with respect to the GST and HST and its registration number is 80815 4652 RT0001; and (y)  Rental ULC will be duly registered under Division I of Chapter VIII of Title I of the QST Act effective as of the Closing Date and will provide its related registration number to Funding LP and the Indenture Trustee promptly thereafter.
Article 8 
COVENANTS
		
	8.1
	Covenants of Funding LP

Funding LP covenants and agrees with Rental ULC and the Indenture Trustee that:
		
	(a)
	Existence.  Funding LP shall preserve and maintain its existence, rights, franchises and privileges in good standing.

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	(b)
	Compliance with Applicable Laws.  Funding LP shall in the conduct of its business comply with all Applicable Laws and obtain and maintain in good standing all licences, permits, qualifications and approvals from any and all governments and governmental agencies in any jurisdiction in which it carries on business except to the extent that failure to so comply, obtain or maintain does not materially affect the business or financial condition of Funding LP.

		
	(c)
	No Reconstruction, Reorganization, Etc.  Funding LP shall not enter into any transaction (whether by way of reconstruction, reorganization, arrangement, consolidation, amalgamation, merger, transfer, sale, lease or otherwise) whereby all or any material part of the undertaking, property and assets of Funding LP would become the property of any Person other than Funding LP.

		
	(d)
	No Defaults.  Funding LP shall promptly notify Rental ULC and the Indenture Trustee of any defaults of which it is aware under this Agreement or any other Transaction Document.

Article 9 
DEFAULT AND REMEDIES
		
	9.1
	Lease Defaults

Any one or more of the following will constitute an event of default (a “Lease Default”) as that term is used herein:
		
	(a)
	there occurs a default in the payment of Rent and the continuance thereof for a period of two (2) Business Days; 

		
	(b)
	the failure by Funding LP to observe any other covenant herein which failure could reasonably be expected to have a Material Adverse Effect on Funding LP or Rental ULC, provided that if such breach of covenant is capable of being remedied, it shall not constitute a Lease Default unless it remains unremedied for five (5) Business Days after Funding LP or an Affiliate becomes aware of it;

		
	(c)
	the inaccuracy when made of a representation or warranty of Funding LP herein which inaccuracy could reasonably be expected to have a Material Adverse Effect on Funding LP or Rental ULC, provided that if such inaccuracy is capable of being remedied, then it shall not constitute a Lease Default unless it remains unremedied for five (5) Business Days after Funding LP or an Affiliate becomes aware of it;

		
	(d)
	the occurrence of a material adverse change since the date hereof in the financial condition or operations of Funding LP which, in the opinion of the Indenture Trustee or the Majority Holders of the Outstanding Senior Notes, and which opinion has been communicated in writing to Funding LP, could reasonably be expected to result in Funding LP (i) being unable to satisfy its obligations hereunder; (ii) becoming a bankrupt; or (iii) seeking the protection of Insolvency Legislation;

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	(e)
	Avis, Budget, Zipcar or Funding LP failing to pay when due any obligation (the “underlying obligation”) for a sum certain in excess of $20,000,000 and such failure continuing for three (3) Business Days after (i) written notice to Avis, Budget, Zipcar or Funding LP, as applicable, from the party to whom the underlying obligation is owed if there is no grace period applicable to the underlying obligation; or (ii) the expiry of any grace period applicable to the underlying obligation; 

		
	(f)
	an Insolvency Event occurs with respect to Funding LP; and

		
	(g)
	the occurrence of an Event of Default.

		
	9.2
	Effect of Lease Default

If any Lease Default shall occur (a) Rental ULC (unless otherwise directed by the Indenture Trustee) or the Indenture Trustee acting pursuant to the Indenture may terminate this Agreement and any accrued and unpaid Rent under this Agreement shall automatically, without further action by Rental ULC or any other Person, become immediately due and payable; and (b) Funding LP shall, at the request of Rental ULC (unless otherwise directed by the Indenture Trustee) or the Indenture Trustee, return or cause to be returned, all Leased Vehicles to Rental ULC or as Rental ULC or the Indenture Trustee acting pursuant to the Indenture may direct.  
Article 10
GENERAL
		
	10.1
	Assignability

No party to this Agreement may assign any of its rights or obligations under this Agreement without the prior written consent of the other parties and satisfaction of the Rating Agency Condition for each Outstanding Series and Class of Notes; provided that, notwithstanding the foregoing, Rental ULC may assign its rights hereunder pursuant to, and in accordance with, the Security Interest and Funding LP may assign its rights hereunder pursuant to, and in accordance with, the Funding LP Security Agreement. 
		
	10.2
	Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein.  Each of the parties hereto hereby attorns to the non-exclusive jurisdiction of the courts of the Province of Ontario.
		
	10.3
	Headings etc.

The division of this Agreement into sections and other subdivisions and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this Agreement.  The terms “this Agreement”, “hereof”, “hereunder” and similar expressions refer to this Agreement and not to any particular section or other portion hereof and include the recitals and any agreement supplemental hereto.
		
	10.4
	Severability

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In the event that one or more of the provisions contained in this Agreement shall be invalid, illegal or unenforceable in any respect under any applicable law, the validity, legality or enforceability of the remaining provisions hereof shall not be affected or impaired thereby.  Each of the provisions of this Agreement is hereby declared to be separate and distinct.
		
	10.5
	Notices, etc.

Any notice, report, payment or demand required or permitted to be given or made hereunder shall be in writing and shall be sufficiently given or made for all purposes if delivered personally or transmitted by telecopy or fax to the party or to an officer of the other party to whom the same is directed, addressed as follows:
		
	(a)
	if to Funding LP, addressed to it at:

WTH Funding Limited Partnership 
c/o Aviscar Inc. 
1 Convair Drive East 
Etobicoke, Ontario 
M9W 6Z9
Attention:    Controller 
Fax No.:    (416) 213-8505

with a copy to:

Avis Budget Car Rental LLC 
6 Sylvan Way 
Parsippany, N.J. 
U.S.A. 07054

Attention:    Treasury 
Fax No.:    (973) 496-3560

and

Attention:    Legal Department 
Fax No.:    (973) 496-3444

		
	(b)
	if to Rental ULC, addressed to it at:

WTH Car Rental ULC 
c/o Aviscar Inc. 
1 Convair Drive East 
Etobicoke, Ontario 
M9W 6Z9

- 16 -

Attention:    Controller 
Fax No.:    (416) 213-8505

with a copy to:

Avis Budget Car Rental LLC 
6 Sylvan Way 
Parsippany, N.J. 
U.S.A. 07054

Attention:    Treasury 
Fax No.:    (973) 496-3560

and

Attention:    Legal Department 
Fax No.:    (973) 496-3444
		
	(c)
	if to the Indenture Trustee, addressed to it at:

BNY Trust Company of Canada 
320 Bay Street, 11th Floor 
Toronto, Ontario 
M5H 4A6
Attn: Corporate Trust Administration 
Fax: (416) 360-1711
Any such notice that is given by personal delivery shall be deemed to have been received on the day of actual delivery thereof and any notice given by telecopy or fax shall be deemed to have been received on the first Business Day after the transmittal thereof.  Any of the parties hereto may change its address or fax number by giving written notice of such change to each of the other parties hereto.
		
	10.6
	No Waivers

No failure on the part of any party hereto to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single exercise or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right.
		
	10.7
	No Proceedings

Funding LP hereby agrees that it shall not institute against, or join any other Person in instituting against, Rental ULC any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other proceedings under any federal or provincial bankruptcy or similar law, until one year and a day after the last maturing Note issued by Rental ULC is paid. 
		
	10.8
	Limitation of Liability

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No resort shall be had to the property or assets of BNY Trust Company of Canada or any of its shareholders, directors, officers, employees or agents.  BNY Trust Company of Canada is entering into this Agreement solely in its capacity as Indenture Trustee under the Indenture, and this Agreement shall enure to the benefit of and be binding upon the successors of BNY Trust Company of Canada in its capacity as Indenture Trustee under the Indenture.  
		
	10.9
	Binding Effect

This Agreement shall be binding upon and enure to the benefit of the parties hereto and, to the extent permitted hereunder, their respective successors and assigns.
		
	10.10
	Counterparts

This Agreement may be executed in any number of counterparts with the same effect as if all parties hereto had all signed the same document.  All counterparts and adopting instruments shall be construed together and shall constitute one and the same agreement.
		
	10.11
	Amendment and Restatement

This Agreement amends, restates and replaces in its entirety the Initial Agreement, and may be further amended from time to time by a written amendment duly executed and delivered by all parties hereto and, in respect of material amendments, satisfaction of the Rating Agency Condition for each Outstanding Series and Class of Notes. 

[INTENTIONALLY LEFT BLANK]

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first above written. 
	
				
	 
	 
	WTH CAR RENTAL ULC

	By:
	/s/ Rochelle Tarlowe

	 
	Name:    Rochelle Tarlowe

	 
	Title:    Vice President and Treasurer

	 
	 

	By:
	 

	 
	Name:

	 
	Title:

	
				
	 
	 
	WTH FUNDING LIMITED PARTNERSHIP, by its general partner, AVISCAR INC.

	By:
	/s/ Rochelle Tarlowe

	 
	Name:    Rochelle Tarlowe

	 
	Title:    Vice President and Treasurer

	 
	 

	By:
	 

	 
	Name:

	 
	Title:

	
				
	 
	 
	BNY TRUST COMPANY OF CANADA, as Indenture Trustee

	By:
	/s/ J. Steven Broude

	 
	Name:    J. Steven Broude

	 
	Title:    Authorized Signature

	 
	 

	By:
	 

	 
	Name:

	 
	Title:

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