Document:

EXHIBIT 10.3

 

EXECUTION
COPY

 

 

INTERCREDITOR
AGREEMENT

 

dated as of July 8, 2005

 

among

 

NEFF
RENTAL LLC,

NEFF FINANCE CORP.,

 

NEFF
RENTAL, INC.,

 

THE
OTHER GRANTORS FROM TIME TO TIME PARTY HERETO,

 

GENERAL
ELECTRIC CAPITAL CORPORATION,

as Credit Agreement Agent under the Credit Agreement and 

Priority Lien Collateral Agent under the Priority Lien Collateral Documents,

 

and

 

WELLS
FARGO BANK, NATIONAL ASSOCIATION,

as Trustee and Parity Junior
Lien Collateral Agent under the Indenture

 

THIS IS THE INTERCREDITOR AGREEMENT REFERRED
TO IN (A) THE AMENDED AND RESTATED CREDIT AGREEMENT DATED AS OF JULY 8,
2005, AMONG NEFF RENTAL LLC, NEFF FINANCE CORP., NEFF RENTAL, INC., THE OTHER
CREDIT PARTIES FROM TIME TO TIME PARTY THERETO, THE LENDERS FROM TIME TO TIME
PARTY THERETO AND GENERAL ELECTRIC CAPITAL CORPORATION, AS AGENT, (B) THE
INDENTURE DATED AS OF JULY 8, 2005, AMONG NEFF RENTAL LLC, NEFF FINANCE
CORP., NEFF RENTAL, INC., THE OTHER GUARANTORS FROM TIME TO TIME PARTY THERETO
AND WELLS FARGO BANK, NATIONAL ASSOCIATION, AS TRUSTEE, (C) THE
INTERCREDITOR AGREEMENT DATED AS OF JUNE 3, 2005, AMONG NEFF CORP., NEFF
RENTAL, INC., THE OTHER CREDIT PARTIES THERETO, GENERAL ELECTRIC CAPITAL
CORPORATION, AS FIRST LIEN AGENT, AND CREDIT SUISSE, AS SECOND LIEN AGENT, AS
THE “SUCCESSOR INTERCREDITOR AGREEMENT” AND (D) THE OTHER COLLATERAL
DOCUMENTS REFERRED TO IN THE CREDIT DOCUMENTS REFERRED TO HEREIN.

 

 

 

TABLE OF
CONTENTS

 

	
  ARTICLE I

  	
   

  
	
   

  	
   

  
	
  DEFINITIONS;
  PRINCIPLES OF CONSTRUCTION

  	
   

  
	
   

  	
   

  
	
  SECTION 1.1. Defined Terms

  	
   

  
	
  SECTION 1.2. Rules of Interpretation

  	
   

  
	
   

  	
   

  
	
  ARTICLE II

  	
   

  
	
   

  	
   

  
	
  THE LIENS

  	
   

  
	
   

  	
   

  
	
  SECTION 2.1. Priority of Liens

  	
   

  
	
  SECTION 2.2. Relative Priorities

  	
   

  
	
  SECTION 2.3. Prohibition on Contesting Liens

  	
   

  
	
  SECTION 2.4. No New Liens

  	
   

  
	
  SECTION 2.5. Similar Liens and Agreements

  	
   

  
	
  SECTION 2.6. Restrictions on Enforcement of Parity Junior Liens

  	
   

  
	
  SECTION 2.7. No Interference

  	
   

  
	
  SECTION 2.8. Rights as Unsecured Creditors

  	
   

  
	
  SECTION 2.9. Automatic Release of Parity Junior Liens

  	
   

  
	
  SECTION 2.10. Insurance and Condemnation
  Awards

  	
   

  
	
  SECTION 2.11. Payment Over

  	
   

  
	
  SECTION 2.12. Bailment and Sub-Agency for Perfection of Certain
  Security Interests

  	
   

  
	
  SECTION 2.13. Discretion in Enforcement of
  Priority Liens

  	
   

  
	
  SECTION 2.14. Post Petition Interest

  	
   

  
	
  SECTION 2.15. Amendment of Certain Documents

  	
   

  
	
  SECTION 2.16. Certain Notices in Security
  Documents

  	
   

  
	
  SECTION 2.17. Certain Voting Matters.

  	
   

  
	
  SECTION 2.18. No Waiver by Priority Lien
  Secured Parties

  	
   

  
	
   

  	
   

  
	
  ARTICLE III

  	
   

  
	
   

  	
   

  
	
  INTERCREDITOR
  RELATIONS

  	
   

  
	
   

  	
   

  
	
  SECTION 3.1. Application of Proceeds

  	
   

  
	
  SECTION 3.2. Additional Secured Debt

  	
   

  
	
  SECTION 3.3. Notices by Parity Junior Lien Collateral Agent

  	
   

  

 

i

 

	
  ARTICLE IV

  	
   

  
	
   

  	
   

  
	
  REPRESENTATIONS
  AND WARRANTIES

  	
   

  
	
   

  	
   

  
	
  SECTION 4.1. Representations and Warranties

  	
   

  
	
  SECTION 4.2. Representations and Warranties of Each Agent

  	
   

  
	
   

  	
   

  
	
  ARTICLE V

  	
   

  
	
   

  	
   

  
	
  OTHER AGREEMENTS

  	
   

  
	
   

  	
   

  
	
  SECTION 5.1. Finance and Sale Matters.

  	
   

  
	
  SECTION 5.2. Relief from the Automatic Stay

  	
   

  
	
  SECTION 5.3. Certain Waivers by the Parity Junior Lien Secured
  Parties

  	
   

  
	
   

  	
   

  
	
  ARTICLE VI

  	
   

  
	
   

  	
   

  
	
  MISCELLANEOUS
  PROVISIONS

  	
   

  
	
   

  	
   

  
	
  SECTION 6.1. Amendment of this Agreement; Waiver

  	
   

  
	
  SECTION 6.2. Further Assurances

  	
   

  
	
  SECTION 6.3. Delivery of Collateral and Proceeds of Collateral

  	
   

  
	
  SECTION 6.4. Successors and Assigns

  	
   

  
	
  SECTION 6.5. Delay and Waiver

  	
   

  
	
  SECTION 6.6. Notices; Officer’s Certificates

  	
   

  
	
  SECTION 6.7. Notice Following Discharge of Priority Lien
  Obligations

  	
   

  
	
  SECTION 6.8. Entire Agreement

  	
   

  
	
  SECTION 6.9. Severability; Continuing Nature of this Agreement

  	
   

  
	
  SECTION 6.10. Subrogation

  	
   

  
	
  SECTION 6.11. Headings

  	
   

  
	
  SECTION 6.12. Governing Law; Consent to Jurisdiction

  	
   

  
	
  SECTION 6.13. Waiver of Jury Trial

  	
   

  
	
  SECTION 6.14. Parties in Interest

  	
   

  
	
  SECTION 6.15. Specific Performance

  	
   

  
	
  SECTION 6.16. Counterparts

  	
   

  
	
  SECTION 6.17. Provisions Solely to Define Relative Rights

  	
   

  
	
  SECTION 6.18. Effectiveness; Survival

  	
   

  
	
  SECTION 6.19. Additional Grantors

  	
   

  
	
  SECTION 6.20. Insolvency

  	
   

  
	
  SECTION 6.21. Rights and Immunities of
  Secured Debt Representatives

  	
   

  
	
  SECTION 6.22. Conflicts

  	
   

  
	
  SECTION 6.23. No Reliance; Information

  	
   

  
	
  SECTION 6.24. No Warranties or Liability

  	
   

  
	
  SECTION 6.25. Reinstatement

  	
   

  
	
  SECTION 6.26. Compliance with Trust
  Indenture Act

  	
   

  
	
   

  	
   

  
	
  EXHIBIT A – Form of Intercreditor Agreement Joinder

  	
   

  

 

ii

 

INTERCREDITOR AGREEMENT dated as of July 8,
2005 (together with each Intercreditor Agreement Joinder, this “Agreement”), among
NEFF RENTAL LLC, a Delaware limited liability company (“Neff LLC”), NEFF
FINANCE CORP., a Delaware corporation (“Finance
Corp.” and, together with Neff LLC, “Holdings”), NEFF RENTAL, INC., a Florida
corporation (“Neff
Rental”), the Grantors (as defined below) from time to time
party hereto, GENERAL ELECTRIC CAPITAL CORPORATION (“GECC”), as Credit
Agreement Agent (in such capacity and together with its successors in such
capacity, the “Credit
Agreement Agent”) and as collateral agent for the Priority Lien
Lenders (as defined below) and the other Secured Parties (as defined in the
Credit Agreement (as defined below)) (in such capacity and together with its
successors in such capacity, the “Priority Lien Collateral Agent”), and WELLS
FARGO BANK, NATIONAL ASSOCIATION (“Wells Fargo”), as Trustee (in such capacity
and together with its successors in such capacity, the “Trustee”) and as
collateral agent for the holders of the Notes (as defined below) (in such
capacity and together with its successors in such capacity, the “Parity Junior Lien Collateral Agent”).

 

PRELIMINARY STATEMENT

 

Reference is made to (a) the Amended and
Restated Credit Agreement dated as of July 8, 2005 (together with the
related documents thereto (including any guarantee agreements and security
documents), in each case, as amended, restated, supplemented, modified,
increased, renewed, refunded, replaced (whether upon or after termination or
otherwise) or refinanced (including by means of sales of debt securities to
institutional investors) in whole or in part from time to time, the “Credit Agreement”),
among Holdings, Neff Rental, the other Grantors from time to time party
thereto, the lenders from time to time party thereto (the “Priority Lien Lenders”)
and GECC, as Credit Agreement Agent, (b) the Indenture dated as of July 8,
2005 (as amended, extended, renewed, restated, supplemented or otherwise
modified (in whole or in part, and without limitation as to amount, terms,
conditions, covenants and other provisions) from time to time, and any
Refinancing (as defined below) thereof, whether in whole or in part, or a
successor indenture, whether by the same or any other holders or trustee or
group of holders and whether by the same trustee or a different trustee, the “Indenture”), among
Holdings, Neff Rental, the other Guarantors (as defined in the Indenture) from
time to time party thereto, and Wells Fargo, as Trustee, (c) the Priority
Lien Documents (such term and each other capitalized term used in this
Agreement having the meaning given it in Article I) and (d) the
Parity Junior Lien Documents.

 

RECITALS

 

A.  The
Priority Lien Lenders agreed to make loans to Neff Rental pursuant to the
Credit Agreement, upon, among other terms and conditions, the condition that
the Priority Lien Obligations under the Credit Agreement shall be secured by
first priority Liens on, and security interests in, the Collateral.

 

B.  The
holders of the Note Obligations have agreed to purchase the Notes issued
pursuant to the Indenture, which Notes shall be secured by Parity Junior Liens
on, and security interests in, the Collateral.

 

1

 

C.  The
Credit Agreement and the Indenture require, among other things, that the
parties thereto set forth in this Agreement, among other things, their
respective rights, obligations and remedies with respect to the Collateral.

 

D.  The
parties hereto desire to provide that future secured creditors of Holdings,
Neff Rental and any other Grantors may become party to, and have their
respective Liens and security interests governed by, the provisions of this
Agreement in accordance with all applicable Secured Debt Documents.

 

Accordingly, the parties hereto agree as
follows:

 

ARTICLE I

DEFINITIONS; PRINCIPLES
OF CONSTRUCTION

 

SECTION 1.1.  Defined
Terms.  As used in this Agreement,
the following terms shall have the meanings specified below:

 

“Additional Secured Debt” has the meaning set
forth in Section 3.2(a).

 

“Affiliate” has the meaning specified in the
Indenture.

 

“Agents” means the Priority Lien Collateral
Agent and the Parity Junior Lien Collateral Agent.

 

“Agreement” has the meaning assigned to such
term in the preamble to this Agreement.

 

“Bankruptcy Code” means Title 11 of the
United States Code entitled “Bankruptcy,” as now and hereinafter in effect, or
any successor statute.

 

“Bankruptcy Law” means the Bankruptcy Code and
any other similar Federal, state or foreign bankruptcy, insolvency or
receivership law.

 

“Capital Stock” has the meaning assigned to
such term in the Indenture in effect on the date hereof (or any similar term in
any subsequent Indenture).

 

“Class” means
(1) in the case of Parity Junior Lien Debt, every Series of Parity
Junior Lien Debt, taken together, and (2) in the case of Priority Lien
Debt, every Series of Priority Lien Debt, taken together.

 

“Collateral” means, collectively, the Priority
Lien Collateral and the Parity Junior Lien Collateral.

 

“Credit Agreement” has the meaning set forth in the preliminary statement.

 

“Credit Agreement Agent” means, at any time,
the Person serving at such time as the “Agent” or “Administrative Agent” under
the Credit Agreement or any other representative then

 

2

 

most recently designated in accordance with the applicable provisions
of the Credit Agreement, together with its successors in such capacity.

 

“Credit Documents” means the Priority Lien
Documents and the Parity Junior Lien Documents.

 

“Credit Facilities” means (1) the Credit Agreement and (2) one or more
other debt facilities or commercial paper facilities, with banks, institutional
lenders or other Persons providing for revolving credit loans, term loans,
receivables financing (including through the sale of receivables to such
lenders or to special purpose entities formed to borrow from such lenders
against such receivables) or letters of credit, bank guarantees or banker’s
acceptances, in each case, as amended, restated, supplemented, modified,
increased, renewed, refunded, replaced (whether upon or after termination or
otherwise) or refinanced (including by means of sales of debt securities to
institutional investors) in whole or in part from time to time.

 

“DIP Financing” has the meaning set forth in Section 5.1(a)(2).

 

“DIP Financing Liens” has the meaning set forth
in Section 5.1(a)(2).

 

“Discharge of Priority Lien Obligations” means, subject to Section 6.25, the
occurrence of all of the following:

 

(a)                                  termination or expiration of all
commitments to extend credit that would constitute Priority Lien Debt;

 

(b)                                 payment in full in cash of the
principal of and interest and premium (if any) on all Priority Lien Debt (other
than any undrawn letters of credit);

 

(c)                                  discharge or cash collateralization
(to the extent of any letters of credit constituting Priority Lien Debt (i) in
the case of the Credit Agreement, in the manner and pursuant to the procedures
specified in the Credit Agreement or if not so specified at 105% of the
aggregate undrawn amount and (ii) in the case of any other Priority Lien
Document, at the lesser of the amount specified in such document and 105% of
the aggregate undrawn amount) of all such outstanding letters of credit
constituting Priority Lien Debt; and

 

(d)                                 payment in full in cash of all other
Priority Lien Obligations that are then outstanding and unpaid at the time the
Priority Lien Debt is paid in full in cash (other than any obligations for
taxes, costs, indemnifications, reimbursements, damages and other liabilities
in respect of which no claim or demand for payment has been made at such time).

 

“Disposition” means any sale, lease, rental,
exchange, transfer, conveyance, license or other disposition.  “Dispose” shall have a correlative meaning.

 

“Finance Corp.” has the meaning assigned to
such term in the preamble to this Agreement.

 

3

 

“GECC” has the meaning assigned to such term
in the preamble to this Agreement.

 

“Grantors” means
Holdings, Neff Rental and each other Person (if any) that grants a Lien on all
or part of its assets or properties to secure all or part of the Secured
Obligations.

 

“Holdings” has the meaning assigned to such
term in the preamble to this Agreement.

 

“Indebtedness” means and includes all
obligations that constitute Indebtedness as defined in the Indenture as in
effect on the date of this Agreement.

 

“Indenture” has
the meaning set forth in the preliminary statement.

 

“Insolvency or Liquidation Proceeding” means (a) any
voluntary or involuntary proceeding under the Bankruptcy Code or any other
Bankruptcy Law with respect to any Grantor, (b) any voluntary or
involuntary appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for any Grantor or for a substantial part of
the property or assets of any Grantor, (c) any voluntary or involuntary
winding-up or liquidation of any Grantor or (d) a general assignment for
the benefit of creditors by any Grantor.

 

“Intercreditor Agreement Joinder” means an
agreement substantially in the form of Exhibit A.

 

“Interest Swap Obligations” means the obligations of any Person
pursuant to any arrangement with any other Person whereby, directly or
indirectly, such Person is entitled to receive from time to time periodic
payments calculated by applying either a floating or a fixed rate of interest
on a stated notional amount in exchange for periodic payments made by such
other Person calculated by applying a fixed or a floating rate of interest on
the same notional amount and shall include interest rate swaps, caps, floors,
collars and similar agreements.

 

“Lien” means any mortgage or deed of trust,
pledge, hypothecation, assignment, deposit arrangement, lien, charge, claim,
security interest, easement or encumbrance of any kind or nature whatsoever
(including any lease or title retention agreement, any financing lease having
substantially the same economic effect as any of the foregoing, and the filing
of, or agreement to give, any financing statement perfecting a security
interest under the UCC or comparable law of any jurisdiction).

 

“Neff LLC” has the meaning assigned to such
term in the preamble to this Agreement.

 

“Neff Rental” has the meaning set forth in the
preamble to this Agreement.

 

“Note Documents” means the Indenture, the
Notes and the Note Security Documents.

 

“Note Obligations” means the Notes and all
other Obligations in respect thereof.

 

“Note Security Documents” has the meaning specified in the
Indenture.

 

“Notes” means all 111⁄4% Second Priority Senior
Secured Notes due 2012 issued under the Indenture.

 

4

 

“Obligations” means, with respect to any Indebtedness, any principal (including
reimbursement obligations with respect to letters of credit whether or not
drawn), interest (including all interest accrued thereon after the commencement
of any Insolvency or Liquidation Proceeding at the rate, including any
applicable post-default rate, specified in (1) in the case of Priority
Lien Debt, the Priority Lien Documents or (2) in the case of other
Indebtedness, the documentation governing such Indebtedness, in each case, even
if such interest is not enforceable, allowable or allowed as a claim in such
Insolvency or Liquidation Proceeding), premium (if any), fees,
indemnifications, reimbursements, expenses and other liabilities payable under
the documentation governing such Indebtedness; provided,
however, that Obligations with respect to the Notes shall not
include the fees and indemnifications in favor of the Trustee and other third
parties other than the holders of such Notes.

 

“Officer’s Certificate” means a certificate with respect to
compliance with a condition or covenant provided for in this Agreement, signed
on behalf of Neff LLC, Finance Corp. or Neff Rental, as applicable, by one
officer of Neff LLC, Finance Corp. or Neff Rental, who must be the Chairman of
the Board, the President, any Vice-President, the Treasurer or the Secretary of
Neff LLC, Finance Corp. or Neff Rental, as applicable, including:

 

(a)                                  a statement that the Person making
such certificate has read such condition or covenant;

 

(b)                                 a brief statement as to the nature
and scope of the examination or investigation upon which the statements or
opinions contained in such certificate are based;

 

(c)                                  a statement that, in the opinion of
such Person, he or she has made such examination or investigation as is
necessary to enable him or her to express an informed opinion as to whether or
not such condition or covenant has been satisfied; and

 

(d)                                 a statement as to whether or not, in
the opinion of such Person, such condition or covenant has been satisfied.

 

“Parity Junior Lien” means any Lien granted pursuant to any Parity Junior Lien
Security Document to the Parity Junior Lien Collateral Agent, at any time, upon
any property of Holdings or any other Grantor to secure Parity Junior Lien
Obligations.

 

“Parity Junior Lien Collateral” means all
Collateral (as defined in the Indenture) and any other assets or property of
Holdings or any other Grantor now or at any time hereafter subject to Liens
securing any Parity Junior Lien Obligations.

 

 “Parity Junior Lien Collateral Agent”
means Wells Fargo and its successors as collateral agent under the Indenture
and any other Person designated as a collateral agent with respect to any other
Series of Parity Junior Lien Debt; provided
that, until such time that the Note Obligations have been discharged or paid in
full, Wells Fargo and its successors as collateral agent under the Indenture
shall be the sole authorized Person to act as the Parity Junior Lien Collateral
Agent with respect to the Note Obligations.

 

5

 

“Parity Junior Lien Debt” means:

 

(a)                                  the Notes, which Notes (whether
issued on the date hereof or in the future) shall be treated as a single class
or Series for all purposes of this Agreement; and

 

(b)                                 any other Indebtedness of Holdings
or any other Grantor that is secured equally and ratably with the Notes by a
Parity Junior Lien that was permitted to be incurred and so secured under each
applicable Secured Debt Document; provided
that such Indebtedness is (i) if incurred by Holdings, guaranteed by each
Restricted Subsidiary of Neff LLC that, on the date of incurrence of such
Indebtedness, is a Guarantor (as defined in the Indenture) or (ii) if
incurred by Neff LLC or Finance Corp. or any other Grantor, guaranteed by
Finance Corp. or Neff LLC, as applicable, and each Restricted Subsidiary of
Neff LLC that, on the date of incurrence of such Indebtedness, is a Guarantor
(as defined in the Indenture); provided,
further, in the case of any
Indebtedness referred to in this clause (b), that on or before the date on
which such Indebtedness is incurred by Holdings, Neff Rental or such other
Grantor, such Indebtedness is designated by Neff LLC, in an Officer’s
Certificate delivered to each Parity Junior Lien Representative and the
Priority Lien Collateral Agent, as “Parity Junior Lien Debt” for the purposes
of the Indenture and this Agreement; provided
that no Series of Secured Debt may be designated as both Parity Junior
Lien Debt and Priority Lien Debt.

 

“Parity Junior Lien Documents” means,
collectively, (a) the Note Documents and (b) each indenture, credit
agreement or other agreement governing each other Series of Parity Junior
Lien Debt and the related Parity Junior Lien Security Documents.

 

“Parity Junior Lien Obligations” means the
Parity Junior Lien Debt and all Obligations in respect of Parity Junior Lien
Debt.

 

“Parity Junior Lien Permitted Actions” has the
meaning set forth in Section 2.6(b).

 

“Parity Junior Lien Representative” means:

 

(a)                                  in the case of the Notes, the Parity
Junior Lien Collateral Agent; and

 

(b)                                 in the case of any other Series of
Parity Junior Lien Debt, the trustee, agent or representative of the holders of
such Series of Parity Junior Lien Debt who maintains the transfer register
for such Series of Parity Junior Lien Debt and (i) is appointed as a
Parity Junior Lien Representative (for purposes related to the administration
of the security documents) pursuant to the applicable indenture, credit
agreement or other agreement governing such Series of Parity Junior Lien
Debt, together with its successors in such capacity and (ii) has become a
party to this Agreement by executing an Intercreditor Agreement Joinder.

 

6

 

“Parity Junior Lien Secured Party” means, at
any time, each holder of Parity Junior Lien Obligations and their successors
and assigns.

 

“Parity Junior Lien Security Documents” means
this Agreement, each Note Security Document and all security agreements, pledge
agreements, collateral assignments, mortgages, deeds of trust, collateral
agency agreements, control agreements, documents, instruments or other grants
or transfers for security executed and delivered by Holdings, Neff Rental or
any other Grantor creating (or purporting to create) a Lien upon Collateral for
the benefit of the Parity Junior Lien Collateral Agent, in each case, as
amended, modified, renewed, restated or replaced, in whole or in part, from
time to time, in accordance with its terms, the Indenture and this Agreement.

 

“Permitted Liens” has the meaning specified in
the Indenture.

 

“Person” or
“person” means an individual, partnership,
corporation, limited liability company, unincorporated organization, trust or
joint venture, governmental agency or political subdivision thereof.

 

“Pledged or Controlled Collateral” has meaning
set forth in Section 2.12(a).

 

“Priority Lien” means any Lien granted by any Priority Lien Security Document
to any Priority Lien Representative, at any time, upon any property of Holdings
or any other Grantor to secure Priority Lien Obligations.

 

“Priority Lien Cap” means, as of any date, the principal amount outstanding under
the Credit Agreement, together with the Indebtedness outstanding under any
other Credit Facility that is secured by a Priority Lien, in an aggregate
principal amount not to exceed the sum of the amount permitted to be incurred
pursuant to clause (2) of the definition of “Permitted Indebtedness”
in the Indenture, as of any date, plus
$15,000,000, less the amount of
Parity Junior Lien Debt incurred after the date of the Credit Agreement
pursuant to clause (2) or (13) of the definition of “Permitted
Indebtedness” in the Indenture the net proceeds of which are used to Refinance
Priority Lien Debt and for which there is a reduction in the commitments in
respect of such Priority Lien Debt in an amount equal to the amount of such
Parity Junior Lien Debt.  For purposes of
this definition, all letters of credit will be valued at the face amount thereof,
whether or not drawn (but without duplication of the principal amount of any
other Indebtedness), and all Interest Swap Obligations will be valued at zero.

 

“Priority Lien Collateral” means all
Collateral (as defined in the Credit Agreement) and any other assets or
property of Holdings or any other Grantor now or at any time hereafter subject
to Liens securing any Priority Lien Obligations.

 

“Priority Lien Collateral Agent” means the
Credit Agreement Agent and its successors, each in its capacity as Priority
Lien Collateral Agent under the Credit Agreement and any other Person
designated as a collateral agent with respect to any other Series of
Priority Lien Debt; provided
that, until the Discharge of Priority Lien Obligations in respect of the
Obligations under the Credit Agreement has occurred, the Credit Agreement Agent
and its successors, each in its capacity as Priority Lien Collateral Agent
under the Credit Agreement shall be the sole authorized Person to act as the
Priority Lien Collateral Agent with respect to the Obligations

 

7

 

under the Credit Agreement and each other Series of Priority Lien
Debt unless otherwise determined by the Credit Agreement Agent or such
successor, Holdings and the Required Priority Lien Debtholders at the time such
other Series of Priority Lien Debt is incurred (such determination to be
evidenced in the Intercreditor Agreement Joinder executed and delivered in
connection with the issuance of such Series of Priority Lien Debt).

 

“Priority Lien Debt” means:

 

(a)                                  Indebtedness of Holdings, Neff
Rental or any other Grantor under the Credit Agreement (to the extent such
Indebtedness is not Refinanced with Parity Junior Lien Debt that would reduce
the Priority Lien Cap) that was permitted to be incurred and secured under each
applicable Secured Debt Document, which for purposes of the Indenture, shall be
Indebtedness that is incurred under clause (2) or clause (13) of
the definition of “Permitted Indebtedness” in the Indenture;

 

(b)                                 Indebtedness of Holdings, Neff
Rental or any other Grantor under any other Credit Facility that is secured
equally and ratably (or on such other basis as may be agreed by the relevant
holders of the Priority Lien Obligations) with the Credit Agreement by a
Priority Lien that was permitted to be incurred and so secured under each
applicable Secured Debt Document, which for purposes of the Indenture, shall be
Indebtedness that is incurred under clause (2) or clause (13) of
the definition of “Permitted Indebtedness” in the Indenture; provided, that, in the case of any
Indebtedness referred to in this clause (2), that on or before the date on
which such Indebtedness is incurred by Holdings, Neff Rental or such other
Grantor, such Indebtedness is designated by Neff LLC in an Officer’s
Certificate delivered to each Priority Lien Representative, the Priority Lien
Collateral Agent and the Parity Junior Lien Collateral Agent, as “Priority Lien
Debt” for the purposes of the Secured Debt Documents; provided, that no Series of Secured
Debt may be designated as both Parity Junior Lien Debt and Priority Lien Debt;
and

 

(c)                                  Interest Swap Obligations of
Holdings, Neff Rental or any other Grantor that are incurred pursuant to
clause (4) of the definition of “Permitted Indebtedness” in the
Indenture and permitted to be incurred under the Credit Agreement and any other
Priority Lien Documents; provided, that:

 

(i) such
Interest Swap Obligations are secured by a Priority Lien on all or
substantially all of the assets and properties that secure Indebtedness under
the Credit Facility in respect of which security for such Interest Swap
Obligations was obtained; and

 

(ii) such
Priority Lien is pari passu with the Priority Liens securing Indebtedness under
the Credit Facility in respect of which security for such Interest Swap
Obligations was obtained.

 

8

 

“Priority Lien Documents” means the Credit Agreement and any other
Credit Facility pursuant to which any Priority Lien Debt is incurred and the
applicable Priority Lien Security Documents.

 

“Priority Lien Lenders” has the meaning set forth in the
preliminary statement.

 

“Priority Lien Obligations” means the Priority Lien Debt and all other
Obligations in respect of Priority Lien Debt.

 

“Priority Lien Representative” means:

 

(a)                                  in the case of Priority Lien
Collateral, each applicable Priority Lien Collateral Agent;

 

(b)                                 in the case of the Credit Agreement,
the Credit Agreement Agent; and

 

(c)                                  in the case of any other Series of
Priority Lien Debt, the trustee, agent or representative of the holders of such
Series of Priority Lien Debt who maintains the transfer register for such Series of
Priority Lien Debt and is appointed as a representative of the Priority Lien
Debt (for purposes related to the administration of the applicable Priority
Lien Security Documents) pursuant to a credit agreement or other agreement
governing such Series of Priority Lien Debt, and who has executed an
Intercreditor Agreement Joinder.

 

“Priority Lien Secured Party” means, at any
time, (a) each Secured Party (as defined in the Credit Agreement), (b) each
other person to whom any of the Priority Lien Obligations (including
indemnification obligations) is owed and (c) the successors and assigns of
each of the foregoing.

 

“Priority Lien Security Documents” means this
Agreement, the Collateral Documents (as defined in the Credit Agreement), and
all security agreements, pledge agreements, collateral assignments, mortgages,
deeds of trust, collateral agency agreements, control agreements, documents,
instruments or other grants or transfers for security executed and delivered by
Holdings, Neff Rental or any other Grantor creating (or purporting to create) a
Priority Lien upon Collateral in favor of the Priority Lien Representatives, in
each case, as amended, modified, renewed, restated or replaced, in whole or in
part, from time to time, in accordance with its terms.

 

“Refinance” means, in respect of any
Indebtedness, to refinance, extend, renew, restructure, refund or replace
(including by prepayment, redemption, defeasance or otherwise) or to issue
other Indebtedness or commitments pursuant to which Indebtedness may be
incurred in exchange or replacement for or in addition to such Indebtedness or
any such commitments (whether or not any Indebtedness is outstanding thereunder
and whether or not in connection therewith such Indebtedness or commitments are
increased), in each case in whole or in part. 
“Refinanced”
and “Refinancing”
shall have correlative meanings.

 

“Release” shall have the meaning assigned to
such term in Section 2.9(a).

 

9

 

“Required Parity Junior Lien Debtholders”
means, at any time, (a) with respect to the Note Obligations, as
determined in accordance with the Indenture and (b) with respect to all
other Parity Junior Lien Obligations, at any time, the holders of more than 50%
of the sum of:

 

(i) the
aggregate outstanding principal amount of Parity Junior Lien Debt (including
outstanding letters of credit whether or not then available or drawn); and

 

(ii) other than
in connection with the exercise of remedies, the aggregate unfunded commitments
to extend credit which, when funded, would constitute Parity Junior Lien Debt.

 

For purposes of this definition, (a) Parity
Junior Lien Debt registered in the name or, or beneficially owned by, Holdings
or any Affiliate of Holdings will be deemed not to be outstanding and (b) votes
will be determined in accordance with the applicable Parity Junior Lien
Documents.

 

“Required Priority Lien Debtholders” means (a) with
respect to the Obligations under the Credit Agreement, the “Required Lenders”
under and as defined in the Credit Agreement (or any similar term in any
subsequent Credit Agreement) and (b) with respect to all other Priority
Lien Obligations, at any time, the holders of more than 50% of the sum of:

 

(i) the
aggregate outstanding principal amount of Priority Lien Debt (including
outstanding letters of credit whether or not then available or drawn);

 

(ii) the
aggregate unfunded commitments to extend credit which, when funded, would
constitute Priority Lien Debt.

 

For purposes of this definition,
(x) Priority Lien Debt registered in the name of, or beneficially owned
by, Holdings or any Affiliate of Holdings will be deemed not to be outstanding
and (y) votes will be determined in accordance with the applicable
documents governing such Priority Lien Debt.

 

“Restricted Subsidiary” has the meaning assigned to such term in
the Indenture in effect on the date hereof (or any similar term in any
subsequent Indenture).

 

“Secured Debt” means Parity Junior Lien Debt and Priority Lien Debt.

 

“Secured Debt Acceleration Event” means any
event or condition which, under the terms of any credit agreement, indenture or
other agreement governing any Series of Secured Debt causes, or permits
holders of Secured Debt outstanding thereunder (with or without the giving of
notice or lapse of time, or both, and whether or not notice has been given or
time has lapsed) to cause, the Secured Debt outstanding thereunder to become
immediately due and payable.

 

“Secured Debt Documents” means the Parity Junior Lien Documents and
the Priority Lien Documents.

 

10

 

“Secured Debt Representative” means each Parity Junior Lien
Representative and each Priority Lien Representative.

 

“Secured Obligations” means the Parity Junior Lien Obligations
and the Priority Lien Obligations.

 

“Secured Parties” means the holders of Secured
Obligations and the Secured Debt Representatives.

 

“Security Documents” means the Priority Lien
Security Documents and the Parity Junior Lien Security Documents.

 

“Series of Parity Junior Lien Debt”
means, severally, the Notes and each other issue or series of Parity Junior
Lien Debt for which a single transfer register is maintained.

 

“Series of Priority Lien Debt” means, severally, the Indebtedness
outstanding under the Credit Agreement and any other Credit Facility pursuant
to which any Grantor incurs Priority Lien Debt.

 

“Series of Secured Debt” means each series of Parity Junior Lien Debt
and each Series of Priority Lien Debt.

 

“Subsidiary” with respect to any specified Person, means:

 

(a)                                  any corporation, of which Capital
Stock having at least a majority of the votes entitled to be cast in the
election of directors under ordinary circumstances shall at the time be owned,
directly or indirectly, by such Person; or

 

(b)                                 any other Person of which at least a
majority of the voting interest under ordinary circumstances is at the time,
directly or indirectly owned by such Person.

 

“Trustee” has the meaning assigned to such
term in the preamble to this Agreement.

 

“Uniform Commercial Code” or “UCC” means the
Uniform Commercial Code as the same may, from time to time, be enacted and in
effect in the State of New York; provided,
that to the extent that the UCC is used to define any term herein or in any
Credit Document and such term is defined differently in different Articles of
the UCC, the definition of such term contained in Article 9 shall govern; provided  further,
that in the event that, by reason of mandatory provisions of law, any or all of
the attachment, perfection or priority of, or remedies with respect to, any
Agent’s or any Secured Party’s Lien on any Collateral is governed by the
Uniform Commercial Code as enacted and in effect in a jurisdiction other than
the State of New York, the terms “Uniform Commercial Code” and “UCC” shall mean the
Uniform Commercial Code as enacted and in effect in such other jurisdiction
solely for purposes of the provisions thereof relating to such attachment,
perfection, priority or remedies and for purposes of definitions related to
such provisions.

 

11

 

“Wells Fargo” has the meaning assigned to such
term in the preamble to this Agreement.

 

SECTION 1.2.  Rules of
Interpretation.  (a)  The
definitions of terms herein shall apply equally to the singular and plural
forms of the terms defined.  Whenever the
context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms.  The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without
limitation”.  The word “will” shall be
construed to have the same meaning and effect as the word “shall”.  The word “or” is not exclusive.

 

(b)                         Unless the context requires
otherwise (i) any definition of  or
reference to any statute or regulation or any agreement, instrument or other
document herein shall be construed as referring to such statute or regulation
or such agreement, instrument or other document as from time to time amended,
restated, supplemented or otherwise modified subject, in the case of the Credit
Documents, to this Agreement, (ii) any reference herein (A) to any
person shall be construed to include such person’s successors and assigns and (B) to
any Grantor shall be construed to include such Grantor as debtor and
debtor-in-possession and any receiver or trustee for any Grantor, as the case
may be, in any Insolvency or Liquidation Proceeding, (iii) the words “herein”
, “hereof” and “hereunder”, and words of similar import, shall be construed to
refer to this Agreement in its entirety and not to any particular provision
hereof, (iv) all references herein to Articles, Sections, clauses,
recitals and preamble shall be construed to refer to Articles, Sections,
clauses, recitals or preamble of this Agreement and (v) the words “asset “
and “property” shall be construed to have the same meaning and effect and to
refer to any and all tangible and intangible assets and properties, including
cash, securities, accounts and contract rights.

 

Notwithstanding anything to the contrary in
this Agreement, any references contained herein to any Section, clause,
paragraph or other provision of the Indenture (including any definition
contained therein) shall be deemed to be a reference to such Section, clause,
paragraph or other provision as in effect on the date of this Agreement; provided, that any reference to any such
Section, clause, paragraph or other provision shall refer to such Section,
clause, paragraph or other provision of the Indenture (including any definition
contained therein) as amended or modified from time to time if such amendment
or modification has been (1) made in accordance with the Indenture and
this Agreement and (2) prior to the Discharge of Priority Lien
Obligations, approved in a writing delivered to the Priority Lien Collateral
Agent and the Parity Junior Lien Collateral Agent by, or on behalf of, and with
the consent of, the requisite holders of Priority Lien Obligations as are
needed (if any) under the terms of the applicable Priority Lien Documents to
approve such amendment or modification.

 

(c)                          Notwithstanding anything to the
contrary in this Agreement, any references contained herein to any Section,
clause, paragraph or other provision of the Credit Agreement (including any
definition contained therein) shall be deemed to be a reference to such
Section, clause, paragraph or other provision as in effect from time to time.

 

12

 

ARTICLE II

THE LIENS

 

SECTION 2.1.  Priority of
Liens.  Notwithstanding anything else
contained herein or in any of the other Credit Documents, it is the intent of
the parties that:

 

(a)                          the grant of Priority Liens pursuant
to the Priority Lien Security Documents and the grant of Parity Junior Liens
pursuant to the Parity Junior Lien Security Documents, respectively, create two
separate and distinct Liens: the Priority Liens securing the payment and
performance of the Priority Lien Obligations and the Parity Junior Liens securing
the payment and performance of the Parity Junior Lien Obligations,
respectively; and

 

(b)                         the Parity Junior Liens securing the
Parity Junior Lien Obligations are subject and subordinate to the Priority
Liens securing the Priority Lien Obligations.

 

SECTION 2.2.  Relative
Priorities.  Notwithstanding (a) the
date, time, method, manner or order of grant, attachment or perfection of any
Parity Junior Lien or any Priority Lien, (b) the order or time of filing
or recordation of any document or instrument for perfecting the Liens in favor
the Priority Lien Collateral Agent (or any Priority Lien Secured Party) or the
Parity Junior Lien Collateral Agent (or any Parity Junior Lien Secured Party),
or (c) any provision of the UCC or any other applicable law or the
provisions of any Credit Document, any alleged or actual defect or deficiency
in any of the foregoing or any other circumstance whatsoever, the Parity Junior
Lien Collateral Agent, for itself and on behalf of the other Parity Junior Lien
Secured Parties, hereby agrees that, so long as the Discharge of Priority Lien
Obligations has not occurred, (i) any Priority Lien now or hereafter held
by or for the benefit of any Priority Lien Secured Party shall be senior in
right, priority, operation, effect and all other respects to any and all Parity
Junior Liens and (ii) any Parity Junior Lien now or hereafter held by or
for the benefit of any Parity Junior Lien Secured Party shall be junior and
subordinate in right, priority, operation, effect and all other respects to any
and all Priority Liens.  The Priority
Liens shall be and remain senior in right, priority, operation, effect and all
other respects to any Parity Junior Liens for all purposes, whether or not any
Priority Liens are subordinated in any respect to any other Lien securing any
other obligation of any Grantor or any other person and irrespective of the
date, time, method, manner or order of grant, attachment or perfection of any
such Liens and security interests and whether or not the Priority Liens are
valid, perfected or enforceable.

 

SECTION 2.3.  Prohibition
on Contesting Liens.  Each of the
Priority Lien Collateral Agent, for itself and on behalf of the other Priority
Lien Secured Parties, and the Parity Junior Lien Collateral Agent, for itself and
on behalf of the other Parity Junior Lien Secured Parties, agrees that it will
not, and hereby waives any right to, contest or challenge (or support any other
person in contesting or challenging), directly or indirectly, in any proceeding
(including any Insolvency or Liquidation Proceeding), the perfection, priority,
validity or enforceability of any Parity Junior Lien or any Priority Lien, as
the case may be, and the Parity Junior Lien Collateral Agent, for itself and on
behalf of the other Parity Junior Lien Secured Parties, agrees that it will
not, and hereby waives any right to, demand, request, plead or otherwise assert
or claim the benefit of any marshalling, approval, valuation or similar right
which it may have in respect of the Collateral or the Parity Junior Liens; provided that nothing in this Agreement shall be

 

13

 

construed to prevent or impair
the rights of the Priority Lien Collateral Agent, the Priority Lien
Representative or any Priority Lien Secured Party to enforce this Agreement.

 

SECTION 2.4.  No New
Liens.  The parties hereto agree
that, so long as the Discharge of Priority Lien Obligations has not occurred,
none of the Grantors shall, or shall permit any of its Subsidiaries to, (a) grant
or permit any additional Liens on any asset or property of any Grantor to
secure any Parity Junior Lien Obligation unless it has granted, or concurrently
therewith grants, a Lien on such asset or property of any Grantor to secure the
Priority Lien Obligations or (b) subject to Section 10.01(b) of
the Indenture, grant or permit any additional Liens on any asset or property to
secure any Priority Lien Obligations unless it has granted, or concurrently
therewith grants, a Lien on such asset to secure the Parity Junior Lien
Obligations, with each such Lien to be subject to the provisions of this
Agreement; provided, that
the Parity Junior Lien Collateral Agent agrees (on behalf of itself and the
holders of Parity Junior Lien Obligations) that no holder of Parity Junior Lien
Obligations shall obtain, permit or suffer to exist any Lien on any assets or
property of any Grantor not subject to a Lien in favor of the Priority Lien
Collateral Agent or any other Priority Lien Secured Party unless (i) the
Priority Lien Collateral Agent, for the benefit of itself and the Priority Lien
Secured Parties, also obtains a Lien on such assets or property or (ii) the
Priority Lien Collateral Agent declines in a writing to the Parity Junior Lien
Collateral Agent to obtain a Lien on such assets; and provided,
further, that in the event that the Parity Junior Lien Collateral
Agent or any holder of Parity Junior Lien Obligations obtains such a Lien on
any assets or property of Holdings or any other Grantor in contravention of
this Section 2.4 that do not also secure the Priority Lien Obligations,
the Parity Junior Lien Collateral Agent will immediately notify the Priority
Lien Collateral Agent in writing of such Lien and shall either (i) release
such Lien or (ii) assign such Lien to the Priority Lien Collateral Agent
for the benefit of the Priority Lien Secured Parties as security for the
Priority Lien Obligations (unless Holdings or the applicable Grantor, as
applicable, shall promptly grant a similar Lien on such assets or property to
the Priority Lien Collateral Agent for the benefit of the Priority Lien Secured
Parties and such Lien shall be prior to the Lien of the Parity Junior Lien
Collateral Agent on such assets or property as a result of this Agreement or
otherwise).  To the extent that the
provisions of the immediately preceding sentence are not complied with for any
reason, without limiting any other right or remedy available to the Priority
Lien Collateral Agent or the other Priority Lien Secured Parties, the Parity
Junior Lien Collateral Agent agrees, for itself and on behalf of the holders of
Parity Junior Lien Obligations, that any amounts received by or distributed to
the Parity Junior Lien Collateral Agent or any holder of Parity Junior Lien
Obligations pursuant to or as a result of any Lien granted in contravention of
this Section shall be subject to Section 2.11.

 

SECTION 2.5.  Similar
Liens and Agreements.  Subject to Section 10.01(b) of
the Indenture, each of the parties hereto acknowledges and agrees that it is
its intention that the Priority Lien Collateral and the Parity Junior Lien
Collateral be identical.  In furtherance
of the foregoing, the parties hereto agree:

 

(a)                          to cooperate in good faith in order
to determine, upon any reasonable request by the Priority Lien Collateral Agent
or the Parity Junior Lien Collateral Agent, the specific assets included in the
Priority Lien Collateral and the Parity Junior Lien Collateral, the steps taken
to perfect the Priority Liens and the Parity Junior Liens thereon and the identity
of

 

14

 

the respective Grantors obligated under the
Priority Lien Documents and the Parity Junior Lien Documents; and

 

(b)                         that the documents, agreements and
instruments creating or evidencing the Parity Junior Lien Collateral and the
Parity Junior Liens shall be in all material respects in the same form as the
documents, agreements and instruments creating or evidencing the Priority Lien
Collateral and the Priority Liens, other than with respect to the first
priority and second priority nature of the Liens created or evidenced
thereunder, the identity of the Secured Parties that are parties thereto or
secured thereby and other matters contemplated by this Agreement.

 

SECTION 2.6.  Restrictions
on Enforcement of Parity Junior Liens. 
(a)  Until the Discharge of Priority Lien Obligations, the Priority
Lien Representatives and the holders of Priority Lien Obligations will have,
subject to the exceptions set forth below in clauses (1) through (4),
the exclusive right to act with respect to the Security Documents and the
Collateral, including the exclusive right to enforce, collect or realize on any
Collateral or exercise any other right or remedy with respect to the Collateral
and neither the Parity Junior Lien Collateral Agent nor the holders of Parity
Junior Lien Obligations may authorize or direct the Priority Lien
Representatives or any other Person with respect to such matters.  Notwithstanding the foregoing, the Parity
Junior Lien Representatives and the holders of Parity Junior Lien Obligations
may direct the Parity Junior Lien Collateral Agent:

 

(1)                          without any condition or restriction
whatsoever, at any time after the Discharge of Priority Lien Obligations;

 

(2)                             subject to the prior Discharge of
Priority Lien Obligations, as necessary to redeem any Collateral in a creditor’s
redemption permitted by law or to deliver any notice or demand necessary to
enforce any right to claim, take or receive proceeds of Collateral remaining
after the Discharge of Priority Lien Obligations in the event of foreclosure or
other enforcement of any Permitted Lien;

 

(3)                             as necessary to perfect or establish
the second priority (subject to Priority Liens and other Permitted Liens and
other than with respect to the possession or control of the Pledged or
Controlled Collateral) of the Parity Junior Liens upon any Collateral; provided, that unless otherwise agreed to
by the Parity Junior Lien Collateral Agent in the Security Documents, the
Parity Junior Lien Representatives and the holders of Parity Junior Lien
Obligations may not require the Parity Junior Lien Collateral Agent to take any
action to perfect any Collateral through possession or control; or

 

(4)                             as necessary to create, prove,
preserve or protect (but not enforce) the Parity Junior Liens upon any
Collateral.

 

(b)                         So long as the Discharge of Priority
Lien Obligations has not occurred, whether or not any Insolvency or Liquidation
Proceeding has been commenced, the Priority Lien Collateral Agent, the Priority
Lien Representatives and the holders of Priority Lien Obligations shall have
the exclusive right to enforce rights and exercise remedies (including any
right of setoff) with respect to the Collateral (including making
determinations regarding the release, Disposition or restrictions with respect
to the Collateral (including the enforcement of any right

 

15

 

under any account control agreement, landlord
waiver or bailee’s letter or any similar agreement or arrangement to which the
Parity Junior Lien Collateral Agent or any other Parity Junior Lien Secured
Party is a party), or to commence or seek to commence any action or proceeding
with respect to such rights or remedies (including any foreclosure action or
proceeding or any Insolvency or Liquidation Proceeding), in each case, without
any consultation with or any consent of the Parity Junior Lien Collateral
Agent, any Parity Junior Lien Representative or any holder of Parity Junior
Lien Obligations; provided that,
notwithstanding the foregoing:

 

(i) in any
Insolvency or Liquidation Proceeding, the Parity Junior Lien Collateral Agent
may file a proof of claim or statement of interest with respect to the Parity
Junior Lien Obligations;

 

(ii) the Parity
Junior Lien Collateral Agent may take any action (other than actions relating
to enforcement of Parity Junior Liens) to preserve or protect the validity,
perfection, second priority and enforceability of the Parity Junior Liens, provided that no such action is, or could
reasonably be expected to be, (A) adverse in any respect to the Priority
Liens or the rights of the Priority Lien Collateral Agent, the Priority Lien
Representatives or any holders of Priority Lien Obligations to exercise
remedies in respect thereof or (B) otherwise inconsistent with the terms
of this Agreement, including the automatic release of Parity Junior Liens
provided in Section 2.9 and the automatic amendment of the Parity Junior
Lien Security Documents provided in Section 2.15(c);

 

(iii) the
holders of Parity Junior Lien Obligations may file any responsive or defensive
pleadings in opposition to any motion, claim, adversary proceeding or other
pleading made by any person objecting to or otherwise seeking the disallowance
of the claims of the holders of Parity Junior Lien Obligations, including any
claims secured by the Collateral or otherwise make any agreements or file any
motions pertaining to the Parity Junior Lien Obligations, in each case, to the
extent not inconsistent with the terms of this Agreement;

 

(iv) the holders
of Parity Junior Lien Obligations may exercise rights and remedies as unsecured
creditors, as provided in Section 2.8; and

 

(v) subject to Section 2.6(a),
the Parity Junior Lien Collateral Agent and the holders of Parity Junior Lien
Obligations may enforce any of their rights and exercise any of their remedies
with respect to the Collateral after the Discharge of Priority Lien Obligations

 

(the actions described in clauses (i) through
(v) being referred to herein as the “Parity Junior Lien Permitted Actions”).

 

Except for the Parity Junior Lien Permitted Actions, unless and until
the Discharge of Priority Lien Obligations has occurred, the sole right of the
Parity Junior Lien Collateral Agent, the Parity Junior Lien Representatives and
the holders of Parity Junior Lien Obligations with respect to the Collateral
shall be to receive a share of the proceeds of the Collateral, if any, after
the

 

16

 

Discharge of Priority Lien Obligations has occurred and then in
accordance with the Parity Junior Lien Documents and applicable law.

 

(c)                                  In exercising rights and remedies
with respect to the Collateral, the Priority Lien Representatives and the
holders of Priority Lien Obligations may enforce the provisions of the Priority
Lien Documents and exercise remedies thereunder, all in such order and in such
manner as they may determine in their sole discretion.  Such exercise and enforcement shall include
the rights of an agent appointed by them to Dispose of Collateral upon
foreclosure, to incur expenses in connection with any such Disposition and to
exercise all the rights and remedies of a secured creditor under the Uniform
Commercial Code, the Bankruptcy Code or any other Bankruptcy Law.  The Priority Lien Collateral Agent agrees, if
commercially practicable, to provide at least three Business Days’ prior
written notice to the Parity Junior Lien Collateral Agent of its intention to
foreclose upon or Dispose of any Collateral.

 

(d)                                 The Parity Junior Lien Collateral
Agent, for itself and on behalf of the Parity Junior Lien Representatives and
the other holders of Parity Junior Lien Obligations, hereby acknowledges and
agrees that no covenant, agreement or restriction contained in any Parity
Junior Lien Security Document (other than this Agreement) or any other Parity
Junior Lien Document shall be deemed to restrict in any way the rights and
remedies set forth in this Agreement of the Priority Lien Collateral Agent, the
Priority Lien Representatives or the holders of Priority Lien Obligations with
respect to the Collateral.

 

SECTION 2.7.  No
Interference.  The Parity Junior Lien
Collateral Agent, for itself and on behalf of the Parity Junior Lien
Representatives and any other Parity Junior Lien Secured Parties, agrees that,
whether or not any Insolvency or Liquidation Proceeding has been commenced, the
Parity Junior Lien Collateral Agent, the Parity Junior Lien Representatives and
the other Parity Junior Lien Secured Parties:

 

(a)                                  will not, so long as the Discharge
of Priority Lien Obligations has not occurred and except for Parity Junior Lien
Permitted Actions, (A) enforce or exercise, or seek to enforce or
exercise, any rights or remedies (including any right of setoff) with respect
to any Collateral (including the enforcement of any right under any account
control agreement, landlord waiver or bailee’s letter or any similar agreement
or arrangement to which the Parity Junior Lien Collateral Agent or any other
Parity Junior Lien Secured Party is a party or is entered into for such Person’s
benefit), (B) commence or join with any Person (other than the Priority
Lien Collateral Agent) in commencing, or petition for or vote in favor of any
resolution for, any action or proceeding with respect to such rights or
remedies (including any foreclosure action) with respect to Collateral, (C) exercise
any right to Dispose of any Collateral or any proceeds thereof or (D) exercise
any right to notify any third party account debtors of any Grantor to make
payment in respect of the Collateral directly to any Parity Junior Lien Secured
Party or any Person on any such Parity Junior Lien Secured Party’s behalf;

 

(b)                                 will not contest, protest or object
to or otherwise interfere with any foreclosure action or proceeding brought by
the Priority Lien Collateral Agent or any other Priority Lien Secured Party, or
any other enforcement or exercise by any Priority Lien Secured Party of any
rights or remedies relating to the Collateral under the Priority Lien Documents
or

 

17

 

otherwise, so long as Parity Junior Liens
attach to the proceeds thereof subject to the relative priorities set forth in Section 2.2;

 

(c)                                  will not object to the forbearance
by the Priority Lien Collateral Agent or any other Priority Lien Secured
Parties from commencing or pursuing any foreclosure action or other proceeding
or any other enforcement or exercise of any rights or remedies with respect to
the Collateral;

 

(d)                                 will not, so long as the Discharge
of Priority Lien Obligations has not occurred and except for Parity Junior Lien
Permitted Actions, take or receive any Collateral or any proceeds thereof or
payment with respect thereto in connection with the exercise of any right or
enforcement of any remedy (including any right of setoff) with respect to any
Collateral or in connection with any insurance policy award under a policy of
insurance relating to Collateral or any condemnation award (or deed in lieu of
condemnation) relating to Collateral;

 

(e)                                  will not, except for Parity Junior
Lien Permitted Actions, take any action that would, or could reasonably be
expected to, hinder, in any manner, any exercise of remedies against Collateral
under the Priority Lien Documents, including any Disposition of any Collateral,
whether by foreclosure or otherwise;

 

(f)                                    will not object to the manner in
which the Priority Lien Collateral Agent or any other Priority Lien Secured
Party may seek to enforce or collect the Priority Lien Obligations or the
Priority Liens, regardless of whether any action or failure to act by or on
behalf of the Priority Lien Collateral Agent or any other Priority Lien Secured
Party is, or could be, adverse to the interests of any Parity Junior Lien
Secured Party, and will not assert, and hereby waive, to the fullest extent
permitted by law, any right to demand, request, plead or otherwise assert or
claim the benefit of any marshalling, appraisal, valuation or other similar
right that may be available under applicable law with respect to the Collateral
or any similar rights a junior secured creditor may have under applicable law;
and

 

(g)                                 will not attempt, directly or
indirectly, whether by judicial proceeding or otherwise, to challenge or
question the validity, perfection, priority or enforceability of any Priority
Lien Obligation or any Priority Lien Document, including this Agreement, or the
validity or enforceability of the priorities, rights or obligations established
by this Agreement.

 

SECTION 2.8.  Rights as
Unsecured Creditors.  Notwithstanding
anything herein to the contrary, the Parity Junior Lien Collateral Agent and
the other Parity Junior Lien Secured Parties may, in accordance with the terms
of the Parity Junior Lien Documents and applicable law, enforce rights and
exercise remedies against any Grantor as unsecured creditors.  Nothing in this Agreement shall prohibit the
receipt by the Parity Junior Lien Collateral Agent or any other Parity Junior
Lien Secured Party of the required payments of principal, premium, interest,
fees and other amounts due under the Parity Junior Lien Documents so long as
such receipt is not the direct or indirect result of the enforcement or
exercise by the Parity Junior Lien Collateral Agent or any other Parity Junior
Lien Secured Party or any other Person of any rights or remedies as a secured
creditor (including any right of setoff) or enforcement of any Parity Junior
Lien in contravention of this Agreement and subject, in the case of
post-petition interest, to Section 2.14(b).

 

18

 

SECTION 2.9.  Automatic
Release of Parity Junior Liens.  (a)  If,
in connection with (i) any Disposition of any Collateral permitted under
the terms of the Priority Lien Documents or (ii) the enforcement or
exercise of any rights or remedies with respect to the Collateral, including
any Disposition of Collateral, the Priority Lien Collateral Agent, for itself
and on behalf of the other Priority Lien Secured Parties, (x) releases any of
the Priority Liens or (y) releases any Grantor (other than Holdings or Neff
Rental, as applicable) from its obligations under its guarantee of the Priority
Lien Obligations (in each case, a “Release”),
other than any such Release granted in connection with the Discharge of
Priority Lien Obligations, then, subject to Section 2.9(b), the Parity
Junior Liens on such Collateral, and the obligations of such Grantor under its
guarantee of the Parity Junior Lien Obligations, shall be automatically,
unconditionally and simultaneously released to the same extent, and the Parity
Junior Lien Collateral Agent shall, for itself and on behalf of the other
Parity Junior Lien Secured Parties, promptly execute and deliver to the
Priority Lien Collateral Agent and the relevant Grantor such termination
statements, releases and other documents as the Priority Lien Collateral Agent
or the relevant Grantor may reasonably request to effectively confirm such
Release; provided that, in the case of a
Disposition of Collateral (other than any such Disposition in connection with
the enforcement or exercise of any rights or remedies with respect to the
Collateral), the Parity Junior Liens shall not be so released if such
Disposition is not permitted under the terms of the Indenture.

 

(b)                                 Notwithstanding Section 2.9(a),
in the event that a Release is of all or substantially all of the Collateral or
all or substantially all of the Grantors, then such Release (other than a
Release in connection with the enforcement or exercise of any rights or
remedies with respect to the Collateral (including with respect to any
Collateral that is the Capital Stock of any Grantor) permitted hereunder) shall
require the consent of the Required Parity Junior Lien Debtholders.

 

(c)                                  Until the Discharge of Priority Lien
Obligations occurs, the Parity Junior Lien Collateral Agent, for itself and on
behalf of the Parity Junior Lien Representatives and each other Parity Junior
Lien Secured Party, hereby appoints the Priority Lien Collateral Agent, and any
officer or agent of the Priority Lien Collateral Agent, with full power of
substitution, as the attorney-in-fact of each Parity Junior Lien Secured Party
for the purpose of carrying out the provisions of Section 2.9(a) and
taking any action and executing any instrument that the Priority Lien
Collateral Agent may deem necessary or advisable to accomplish the purposes of Section 2.9(a) (including
any endorsements or other instruments of transfer or release), which
appointment is irrevocable and coupled with an interest.

 

SECTION 2.10.  Insurance
and Condemnation Awards.  So long as
the Discharge of Priority Lien Obligations has not occurred, the Priority Lien
Collateral Agent and the other Priority Lien Secured Parties shall have the
exclusive right, subject to the rights of the Grantors under the Priority Lien
Documents, to settle and adjust claims in respect of Collateral under policies
of insurance covering Collateral and to approve any award granted in any
condemnation or similar proceeding, or any deed in lieu of condemnation, in
respect of the Collateral.  All proceeds
of any such policy and any such award, or any payments with respect to a deed
in lieu of condemnation, shall be paid (a) first, prior to the Discharge
of Priority Lien Obligations and subject to the rights of the Grantors under
the Priority Lien Documents, to the Priority Lien Collateral Agent for the
benefit of Priority Lien Secured Parties pursuant to the terms of the Priority
Lien Documents, (b) second, after the Discharge of Priority Lien
Obligations and subject

 

19

 

to the rights of the Grantors
under the Parity Junior Lien Documents, to the Parity Junior Lien Collateral
Agent for the benefit of the Parity Junior Lien Secured Parties pursuant to the
terms of the Parity Junior Lien Documents, and (c) third, if no Parity Junior
Lien Obligations are outstanding, to the applicable Grantor, or such other
person as may be entitled thereto or as a court of competent jurisdiction may
otherwise direct.  Until the Discharge of
Priority Lien Obligations has occurred, if the Parity Junior Lien Collateral
Agent or any other Parity Junior Lien Secured Party shall, at any time, receive
any proceeds of any such insurance policy or any such award or payment, it
shall transfer and pay over such proceeds to the Priority Lien Collateral Agent
in accordance with Section 2.11.

 

SECTION 2.11.  Payment
Over.  So long as the Discharge of
Priority Lien Obligations has not occurred, any Collateral, or any proceeds
thereof or payment with respect thereto (together with assets, property or
proceeds subject to Liens referred to in the final sentence of Section 2.4),
received by the Parity Junior Lien Collateral Agent or any holder of Parity
Junior Lien Obligations in connection with any Disposition of, or collection
on, such Collateral upon the enforcement or the exercise of any right or remedy
(including any right of setoff) with respect to the Collateral, or in
connection with any insurance policy claim or any condemnation award (or deed
in lieu of condemnation) or otherwise with respect to the Collateral, in
contravention of this Agreement shall be segregated and held in trust and
forthwith transferred or paid over to the Priority Lien Collateral Agent for
the benefit of holders of Priority Lien Obligations in the same form as
received, together with any necessary endorsements, or as a court of competent
jurisdiction may otherwise direct.  Until
the Discharge of Priority Lien Obligations occurs, the Parity Junior Lien
Collateral Agent, for itself and on behalf of each other holder of Parity
Junior Lien Obligations, hereby appoints the Priority Lien Collateral Agent,
and any officer, agent or other designee of the Priority Lien Collateral Agent,
with full power of substitution, the attorney-in-fact of each such Person for
the purpose of carrying out the provisions of this Section 2.11 and taking
any action and executing any instrument that the Priority Lien Collateral Agent
may deem necessary or advisable to accomplish the purposes of this Section 2.11,
which appointment is irrevocable and coupled with an interest.

 

SECTION 2.12.  Bailment
and Sub-Agency for Perfection of Certain Security Interests.  (a)  The Priority Lien Collateral
Agent agrees that if it shall at any time hold a Priority Lien on any
Collateral that can be perfected by the possession or control of such
Collateral or of any account in which such Collateral is held, and if such
Collateral or any such account is in fact in the possession or under the
control of the Priority Lien Collateral Agent, or of agents or bailees of the
Priority Lien Collateral Agent (such Collateral being referred to herein as the
“Pledged or Controlled
Collateral”) or if it shall any time obtain any landlord waiver
or bailee’s letter or any similar agreement or arrangement granting it rights
or access to Collateral, the Priority Lien Collateral Agent shall, solely for
the purpose of perfecting the Parity Junior Liens granted under the Parity
Junior Lien Documents and subject to the terms and conditions of clauses (a) and
(b) of this Section 2.12, also hold such Pledged or Controlled
Collateral, or take such actions with respect to such landlord waiver, bailee’s
letter, similar agreement or arrangement, as bailee for the Parity Junior Lien
Collateral Agent solely for the purpose of perfecting the Parity Junior Liens,
including for the benefit of the Parity Junior Lien Collateral Agent for
purposes of Section 9-313 and 8-301 of the Uniform Commercial Code.

 

20

 

(b)                                 So long as the Discharge of Priority
Lien Obligations has not occurred, except as otherwise expressly provided by
this Agreement, the Priority Lien Collateral Agent shall be entitled to deal
with the Pledged or Controlled Collateral in accordance with the terms of this
Agreement and the other Priority Lien Documents as if the Parity Junior Liens
did not exist.  The obligations and
responsibilities of the Priority Lien Collateral Agent to the Parity Junior
Lien Collateral Agent and the holders of Parity Junior Lien Obligations under
clauses (a) and (b) of this Section 2.12 shall be limited
solely to holding or controlling the Pledged or Controlled Collateral as bailee
solely for purposes of perfection in accordance with clauses (a) and (b) of
this Section 2.12.  Without limiting
the foregoing, the Priority Lien Collateral Agent shall have no obligation or
responsibility to ensure that any Pledged or Controlled Collateral is genuine
or owned by any of the Grantors or that the Liens of the Parity Junior Lien
Collateral Agent or holders of Parity Junior Lien Obligations are perfected.  The Priority Lien Collateral Agent acting
pursuant to clauses (a) and (b) of this Section 2.12 shall
not, by reason of this Agreement, any other Security Document or any other
document, have a fiduciary relationship in respect of any Parity Junior Lien
Collateral Agent or any holders of Parity Junior Lien Obligations.

 

SECTION 2.13.  Discretion
in Enforcement of Priority Liens.  (a)  In
exercising rights and remedies with respect to the Collateral, the Priority
Lien Representatives may enforce (or refrain from enforcing) the provisions of
the Priority Lien Documents and exercise (or refrain from exercising) remedies
thereunder or any such rights and remedies, all in such order and in such
manner as they may determine in the exercise of their sole and exclusive
discretion, including:

 

(1)                                  the exercise or forbearance from
exercise of all rights and remedies in respect of the Collateral or the
Priority Lien Obligations;

 

(2)                                  the enforcement or forbearance from
enforcement of any Priority Lien in respect of the Collateral;

 

(3)                                  the exercise or forbearance from
exercise of rights and powers of a holder of Capital Stock included in the
Priority Lien Collateral to the extent provided in the Priority Lien Security
Documents;

 

(4)                                  the acceptance of the Collateral in
full or partial satisfaction of the Priority Lien Obligations; and

 

(5)                                  the exercise or forbearance from
exercise of all rights and remedies of a secured lender under the UCC or any
similar law of any applicable jurisdiction or in equity.

 

(b)                                 Without in any way limiting the
generality of Section 2.13(a), the holders of Priority Lien Obligations
and the Priority Lien Representatives and the Priority Lien Collateral Agent
may, at any time and from time to time, without the consent of or notice to holders
of Parity Junior Lien Obligations or the Parity Junior Lien Representatives,
without incurring responsibility to holders of Parity Junior Lien Obligations
and the Parity Junior Lien Representatives and without impairing or releasing
the subordination provided in this Agreement

 

21

 

or the obligations hereunder of holders of
Parity Junior Lien Obligations and the Parity Junior Lien Representatives, do
any one or more of the following:

 

(1)                                  change the manner, place or terms of
payment or extend the time of payment of, or renew or alter, the Priority Lien
Obligations, or otherwise amend or supplement in any manner the Priority Lien
Obligations, or any instrument evidencing the Priority Lien Obligations or any
agreement under which the Priority Lien Obligations are outstanding;

 

(2)                                  release any Person or entity liable
in any manner for the collection of the Priority Lien Obligations;

 

(3)                                  release the Priority Lien on any
Collateral; and

 

(4)                                  exercise or refrain from exercising
any rights against any Grantor.

 

(c)                                  The Lien priorities provided for
herein and the respective rights, interests, agreements and obligations
hereunder of the Priority Lien Collateral Agent and the other Priority Lien
Secured Parties and the Parity Junior Lien Collateral Agent and the other
Parity Junior Lien Secured Parties shall remain in full force and effect
irrespective of:

 

(1)                                  any lack of validity or
enforceability of any Credit Document;

 

(2)                                  any change in the time, place or
manner of payment of, or in any other term of (including, subject to the
limitations set forth in Section 2.15(a), the Refinancing of), all or any
portion of the Priority Lien Obligations, it being specifically acknowledged
that a portion of the Priority Lien Obligations consists or may consist of
Indebtedness that is revolving in nature, and the amount thereof that may be
outstanding at any time or from time to time may be increased or reduced and
subsequently reborrowed;

 

(3)                                  any change in the time, place or manner
of payment of, or, subject to the limitations set forth in Section 2.15(a),
in any other term of, all or any portion of the Priority Lien Obligations;

 

(4)                                  any amendment, waiver or other
modification, whether by course of conduct or otherwise, of any Credit
Document;

 

(5)                                  the securing of any Priority Lien
Obligations or Parity Junior Lien Obligations with any additional collateral or
guarantees, or any exchange, release, voiding, avoidance or non-perfection of
any security interest in any Collateral or any other collateral or any release
of any guarantee securing any Priority Lien Obligations or Parity Junior Lien
Obligations; or

 

(6)                                  any other circumstances that
otherwise might constitute a defense available to, or a discharge of, the
Grantors in respect of the Priority Lien Obligations or this Agreement, or any
of the Parity Junior Lien Secured Parties in respect of this Agreement.

 

22

 

SECTION 2.14.  Post
Petition Interest.  (a)  The
Parity Junior Lien Representative and the Parity Junior Lien Collateral Agent,
for itself and on behalf of the other Parity Junior Lien Secured Parties,
agrees that no Parity Junior Lien Secured Party shall oppose or seek to
challenge any claim by the Priority Lien Representative, the Priority Lien
Collateral Agent or any other Priority Lien Secured Party for allowance and
current payment in any Insolvency or Liquidation Proceeding of Priority Lien
Obligations consisting of post-petition interest, fees or expenses to the extent
of the value of the Priority Liens (it being understood and agreed that such
value shall be determined without regard to the existence of the Parity Junior
Liens on the Collateral).

 

(b)                                 The Priority Lien Collateral Agent,
for itself and on behalf of the other Priority Lien Secured Parties, agrees
that no Priority Lien Secured Party shall oppose or seek to challenge any claim
by the Parity Junior Lien Collateral Agent or any other Parity Junior Lien
Secured Party for allowance in any Insolvency or Liquidation Proceeding of
Parity Junior Lien Obligations consisting of post-petition interest, fees or
expenses to the extent of the value of the Parity Junior Liens (it being
understood and agreed that such value shall be determined taking into account
the Priority Liens on the Collateral) if any such post-petition interest, fees
and expenses shall accrue (and not be payable or paid in cash) until the
Discharge of Priority Lien Obligations has occurred.

 

SECTION 2.15.  Amendment
of Certain Documents.  (a)  The
Priority Lien Documents may be amended, supplemented or otherwise modified in
accordance with their terms, and the Indebtedness under the Credit Agreement
may be Refinanced, in each case, without the consent of any holder of Parity
Junior Lien Obligations; provided,
however, that, without the consent of
the Required Parity Junior Lien Debtholders, no such amendment, supplement,
modification or Refinancing shall (i) contravene any provision of this
Agreement or (ii) result in the aggregate principal amount of the Priority
Lien Debt that is outstanding or available to be drawn under the Priority Lien
Documents (as so amended, supplemented, modified or Refinanced) exceeding the
Priority Lien Cap at such time.

 

(b)                                 Without the prior written consent of
the Required Priority Lien Debtholders, no Parity Junior Lien Document may be
amended, supplemented or otherwise modified, or entered into, to the extent
such amendment, supplement or modification, or the terms of such new Parity
Junior Lien Document, would contravene the provisions of this Agreement.

 

(c)                                  In the event that the Priority Lien
Collateral Agent or the holders of Priority Obligations and the relevant
Grantor enter into any amendment, modification, waiver or consent in respect of
any of the Priority Lien Security Documents (other than this Agreement), then
such amendment, modification, waiver or consent shall apply automatically to
any comparable provisions of the analogous Parity Junior Lien Security Document
(other than this Agreement), in each case, without the consent of the Parity
Junior Lien Collateral Agent or any holder of Parity Junior Lien Obligations or
Holdings or any other Grantor and without any action by the Parity Junior Lien
Collateral Agent or Holdings or any other Grantor; provided, that (i) no such amendment, modification,
waiver or consent shall (A) materially adversely affect the rights of
Parity Junior Lien Collateral Agent or the holders of Parity Junior Lien
Obligations in the Parity Junior Lien Collateral and not the other Secured Parties
in a like or similar manner (taking into account their relative priorities), (B) release
assets subject to the Parity Junior Liens or

 

23

 

release any such Liens, except to the extent
that such release is permitted or required by this Agreement and provided that
there is a substantially concurrent release of the corresponding Priority
Liens, (C) amend, modify or otherwise affect the rights or duties of the
Parity Junior Lien Collateral Agent without its prior written consent, (D) permit
Liens on the Collateral that are not permitted under the terms of the Parity
Junior Lien Documents or (E) result in the aggregate principal amount of
the Priority Lien Debt that is outstanding or available to be drawn under the
Priority Lien Documents (as so amended, supplemented, modified or Refinanced)
exceeding the Priority Lien Cap at such time and (ii) notice of such
amendment, modification, waiver or consent shall have been given to the Parity
Junior Lien Collateral Agent and each Parity Junior Lien Representative at
least three Business Days prior to the effective date of such amendment,
modification, waiver or consent.

 

SECTION 2.16.  Certain
Notices in Security Documents.  The
holders of Parity Junior Lien Obligations and the Parity Junior Lien Collateral
Agent agree that each Parity Junior Lien Security Document that secures Parity
Junior Lien Obligations (but not also securing Priority Lien Obligations) will
include the following language:

 

“Notwithstanding anything herein to the
contrary, the lien and security interest granted to the Collateral Agent
pursuant to this Agreement and the exercise of any right or remedy by such
Collateral Agent hereunder are subject to the provisions of the Intercreditor
Agreement dated as of July 8, 2005, among Neff Rental LLC, Neff Finance
Corp., Neff Rental, Inc., the Grantors from time to time party thereto,
General Electric Capital Corporation, as agent under the Credit Agreement (as
defined therein) and as Priority Lien Collateral Agent (as defined therein),
and Wells Fargo Bank, National Association, as trustee under the Indenture (as
defined therein) and as Parity Junior Lien Collateral Agent (as defined
therein) (as amended, supplemented, amended and restated or otherwise modified
and in effect from time to time, the “Intercreditor
Agreement”).  In the event of
any conflict between the terms of the Intercreditor Agreement and this
Agreement, the terms of the Intercreditor Agreement will govern.”

 

provided, however,
that if the jurisdiction in which any such Parity Junior Lien Security Document
will be filed prohibits the inclusion of the language above or would prevent a
document containing such language from being recorded, the Parity Junior Lien
Representatives and the Priority Lien Representatives agree, prior to such
Parity Junior Lien Document being entered into, to negotiate in good faith
replacement language stating that the lien and security interest granted under
such Parity Junior Lien Document is subject to the provisions of this
Agreement.

 

SECTION 2.17.  Certain
Voting Matters.

 

(a)                                  Each of the Priority Lien
Representatives, on behalf of the holders of Priority Lien Obligations, and the
Parity Junior Lien Collateral Agent and the Priority Lien Collateral Agent and
the Parity Junior Lien Representatives, on behalf of the holders of the
applicable Parity Junior Lien Obligations, agrees that the relevant Secured
Parties will vote as separate classes in connection with any plan of
reorganization in any Insolvency or Liquidation Proceeding and that neither any
Agent nor any Secured Party will seek to vote with the other as a single class
in connection with any plan of reorganization in any Insolvency or Liquidation
Proceeding.

 

24

 

(b)                                 Each of the Parity Junior Lien
Representatives and the holders of the Parity Junior Lien Obligations shall
retain the right to vote and otherwise act in any Insolvency or Liquidation
Proceeding (including the right to vote to accept or reject any plan of
reorganization) to the extent not inconsistent with the provisions hereof.

 

SECTION 2.18.  No Waiver
by Priority Lien Secured Parties. 
Other than with respect to the Parity Junior Lien Permitted Actions and
subject to Section 2.3, nothing contained herein shall prohibit or in any
way limit the Priority Lien Collateral Agent or any other Priority Lien Secured
Party from opposing, challenging or objecting to, in any Insolvency or
Liquidation Proceeding or otherwise, any action taken, or any claim made, by
the Parity Junior Lien Collateral Agent, any Parity Junior Lien Representative
or any other Parity Junior Lien Secured Party, including any request by the
Parity Junior Lien Collateral Agent or any other Parity Junior Lien Secured
Party for adequate protection or any exercise by the Parity Junior Lien
Collateral Agent, any Parity Junior Lien Representative or any other Parity
Junior Lien Secured Party of any of its rights and remedies under the Parity
Junior Lien Documents or otherwise.

 

ARTICLE III

INTERCREDITOR RELATIONS

 

SECTION 3.1.  Application
of Proceeds.  So long as the
Discharge of Priority Lien Obligations has not occurred, any Collateral or
proceeds thereof received by the Priority Lien Collateral Agent in connection
with any Disposition of, or collection on, such Collateral upon the enforcement
or exercise of any right or remedy (including any right of setoff) shall be
applied by the Priority Lien Collateral Agent to the Priority Lien
Representative for the benefit of the holders of the Priority Lien
Obligations.  Upon the Discharge of
Priority Lien Obligations, the Priority Lien Collateral Agent shall deliver to
the Parity Junior Lien Collateral Agent any remaining Collateral in its
possession and any proceeds thereof then held by it in the same form as so
held, together with any necessary endorsements, or as a court of competent
jurisdiction may otherwise direct, to be applied by the Parity Junior Lien
Collateral Agent to the Parity Junior Lien Representative for the benefit of
the holders of the Parity Junior Lien Obligations.

 

SECTION 3.2.  Additional
Secured Debt.  (a)  Subject to,
in the case of Additional Secured Debt that is Priority Lien Debt, the consent
of the Credit Agreement Agent (which consent shall be evidenced by the
execution and delivery by such Credit Agreement Agent of an acknowledgement and
acceptance of any Intercreditor Agreement Joinder executed and delivered in
connection with the issuance of such Additional Secured Debt), Holdings or any
other applicable Grantor will be permitted to designate as an additional holder
of the applicable Secured Obligations hereunder each Person who is, or who
becomes, the registered holder of Parity Junior Lien Debt or the registered
holder of Priority Lien Debt, in each case incurred by Holdings, Neff Rental or
such other Grantor after the date of this Agreement in accordance with the
terms of all applicable Secured Debt Documents. 
It is understood and agreed that nothing in this Section 3.2 is
intended to alter the priorities among Secured Parties belonging to different
Classes as provided in Section 2.1. 
Holdings or any other applicable Grantor may effect such designation by
delivering to each Agent, with copies to each previously identified Secured
Debt Representative, each of the following:

 

25

 

(1)                                  an Officer’s Certificate stating
that Holdings or such other Grantor intends to incur additional Secured Debt (“Additional Secured Debt”)
which will either be (i) Priority Lien Debt permitted by each applicable
Secured Debt Document to be secured by a Priority Lien equally and ratably (or
as otherwise may be agreed by the relevant holders of the Priority Lien
Obligations) with all previously existing and future Priority Lien Debt or (ii) Parity
Junior Lien Debt permitted by each applicable Secured Debt Document to be
secured with a Parity Junior Lien equally and ratably with all previously
existing and future Parity Junior Lien Debt;

 

(2)                                  evidence that Holdings or such other
Grantor has duly authorized, executed (if applicable) and recorded (or caused
to be recorded) in each appropriate governmental office all relevant filings
and recordations to ensure that the Additional Secured Debt is secured by the
Collateral in accordance with the Priority Lien Security Documents and the
Parity Junior Lien Security Documents; and

 

(3)                                  a written notice specifying the name
and address of the Secured Debt Representative and the applicable collateral
agent for such series of Additional Secured Debt for purposes of Section 6.6(a).

 

Notwithstanding the foregoing, nothing in this Agreement will be
construed to allow Holdings or any other Grantor to incur additional
Indebtedness unless such Indebtedness is expressly permitted by the terms of
all applicable Secured Debt Documents.

 

(b)                                 A person to be designated as an
additional holder of any Class of Secured Obligations hereunder must,
prior to such designation, sign an Intercreditor Agreement Joinder.

 

(c)                                  Each of the parties hereto (whether
existing as of the date hereof or added hereto in accordance with the
provisions of Section 3.2(a) and (b), and including each Agent,
Secured Debt Representative and holder of Secured Obligations) hereby agrees
for the benefit of each of the other parties hereto (including all holders of
obligations in respect of Additional Secured Debt that are (or whose
representatives are) added as parties to this Agreement in accordance with the
provisions of Section 3.2(a) and (b)) that, without limiting the
right of any holder of Secured Obligations to waive or subordinate any lien
sharing right to which it is otherwise entitled (pursuant to a waiver or
subordination agreement expressly set forth in a written agreement enforceable
against such holder), (i) Collateral shall be shared equally and ratably
within each Class (or, in the case of Priority Lien Obligations, on such
other basis as may be agreed by the relevant holders of the Priority Lien
Obligations) and (ii) the payment and satisfaction of all of the Secured
Obligations within each Class will be secured equally and ratably by the
Liens established for the benefit of the Secured Parties belonging to such Class (or,
in the case of any Priority Lien Obligations, on such other basis as may be
agreed by the relevant holders of the Priority Lien Obligations).

 

SECTION 3.3.  Notices by
Parity Junior Lien Collateral Agent. 
The Parity Junior Lien Collateral Agent shall promptly (but in any event
within five Business Days) furnish to the Priority Lien Collateral Agent copies
of any notices of acceleration of the maturity of the Notes it may receive from
the Trustee pursuant to Section 10.03(c) of the Indenture.

 

26

 

ARTICLE IV

REPRESENTATIONS AND
WARRANTIES

 

SECTION 4.1.  Representations
and Warranties.  Each party hereto
represents and warrants to the other parties hereto as follows:

 

(a)                                  Such party has all requisite power
and authority to execute and deliver this Agreement and perform its obligations
hereunder.

 

(b)                                 This Agreement has been duly executed
and delivered by such party and constitutes a legal, valid and binding
obligation of such party, enforceable in accordance with its terms.

 

SECTION 4.2.  Representations
and Warranties of Each Agent.  The
Priority Lien Collateral Agent represents and warrants to the other parties
hereto that it has been authorized by the Lenders under and as defined in the
Credit Agreement to enter into this Agreement, and the Parity Junior Lien
Collateral Agent represents and warrants to the other parties hereto that it
has been authorized by the Indenture to enter into this Agreement.

 

ARTICLE V

 

OTHER
AGREEMENTS

 

SECTION 5.1.  Finance and
Sale Matters.

 

(a)                                  Until the Discharge of the Priority
Lien Obligations has occurred, the Parity Junior Lien Collateral Agent, for
itself and on behalf of the other Parity Junior Lien Secured Parties, agrees
that, in the event of any Insolvency or Liquidation Proceeding involving
Holdings, Neff Rental or any other Grantor, the Parity Junior Lien Secured
Parties:

 

(1)                                  will not oppose or object to the use
of any Collateral constituting cash collateral under Section 363 of the
Bankruptcy Code, or any comparable provision of any other Bankruptcy Law,
unless the Priority Lien Secured Parties, or a representative authorized by the
Required Priority Lien Debtholders, shall oppose or object to such use of cash
collateral;

 

(2)                                  will not oppose or object to any
post-petition financing, whether provided by the Priority Lien Secured Parties
or any other person, under Section 364 of the Bankruptcy Code, or any
comparable provision of any other Bankruptcy Law (a “DIP Financing”), or
the Liens securing any DIP Financing (“DIP Financing Liens”), unless the Priority
Lien Secured Parties, or a representative authorized by the Priority Lien
Secured Parties, shall then oppose or object to such DIP Financing or such DIP
Financing Liens, and, to the extent that such DIP Financing Liens are senior
to, or rank pari passu with, the
Priority Liens, the Parity Junior Lien Collateral Agent shall, for itself and
on behalf of the other Parity Junior Lien Secured Parties, subordinate the
Parity Junior Liens to the Priority Liens and the DIP Financing Liens on the
terms of this Agreement and, to

 

27

 

the extent agreed by
the Priority Lien Secured Parties, to any “carveout” for professional fees or
United States trustee fees by the Priority Lien Collateral Agent;

 

(3)                                  except to the extent permitted by Section 5.1(a)(2) or
5.1(b), in connection with the use of cash collateral as described in Section 5.1(a)(1) or
any DIP Financing, will not request adequate protection or any other relief in
connection with such use of cash Collateral, DIP Financing or DIP Financing
Liens; and

 

(4)                                  will not oppose or object to any
Disposition of any Collateral free and clear of the Parity Junior Liens or
other claims under Section 363 of the Bankruptcy Code, or any comparable
provision of any other Bankruptcy Law, if the Priority Lien Secured Parties, or
a representative authorized by the Priority Lien Secured Parties, shall consent
to such Disposition free and clear of the Priority Liens.

 

(b)                                 The Parity Junior Lien Collateral
Agent, for itself and on behalf of the other Parity Junior Lien Secured
Parties, agrees that no Parity Junior Lien Secured Party shall contest, or
support any other Person in contesting,  (i) any
request by the Priority Lien Collateral Agent or any other Priority Lien
Secured Party for adequate protection or similar claim under applicable
Bankruptcy Law or (ii) any objection, based on a claim of a lack of
adequate protection or similar claim under applicable Bankruptcy Law, by the
Priority Lien Collateral Agent or any other Priority Lien Secured Party to any
motion, relief, action or proceeding. 
Notwithstanding the foregoing, if, in connection with any DIP Financing
or use of cash collateral, (A) any Priority Lien Secured Party is granted
adequate protection in the form of additional collateral, the Parity Junior
Lien Collateral Agent may, for itself and on behalf of the other Parity Junior
Lien Secured Parties, seek or request adequate protection in the form of a Lien
on such additional collateral, which Lien will be subordinated to the Priority
Liens and DIP Financing Liens on the terms of this Agreement or (B) any
Parity Junior Lien Secured Party is granted adequate protection in the form of
additional collateral, the Priority Lien Agent shall, for itself and on behalf
of the other Priority Lien Secured Parties, be granted adequate protection in
the form of a first-priority Lien on such additional collateral as security for
the Priority Lien Obligations and for such DIP Financing in accordance with the
terms of this Agreement and the Parity Junior Lien Collateral Agent hereby
consents (on behalf of itself and the other Parity Junior Lien Secured Parties)
to such grant of a first-priority Lien on such additional collateral by the
applicable Grantor to the Priority Lien Collateral Agent for the benefit of the
Priority Lien Secured Parties.  All Liens
granted to the Priority Lien Collateral Agent or any Priority Lien Secured
Party or the Parity Junior Lien Collateral Agent or any other Parity Junior
Lien Collateral Agent in respect of any such additional Collateral shall be
subject to the Lien priorities provided in this Agreement.

 

(c)                                  Notwithstanding the foregoing, the
provisions of Sections 5.1(a) and (b) shall only be applicable as to
the Parity Junior Lien Secured Parties to the extent that the sum of the
aggregate outstanding principal amount of the DIP Financing and the Priority
Lien Obligations does not exceed the amount of the Priority Lien Cap.

 

(d)                                 Notwithstanding the foregoing, both
before and during an Insolvency or Liquidation Proceeding, the holders of
Parity Junior Lien Obligations and the Parity Junior Lien Collateral Agent may
take any actions and exercise any and all rights that would be available to a

 

28

 

holder of unsecured claims, including the
commencement of Insolvency or Liquidation Proceedings against Holdings or any
other Grantor in accordance with applicable law; provided, that the holders of Parity Junior Lien Obligations
and each Parity Junior Lien Representative may not take any of the actions
prohibited under Section 2.6(b) or oppose or contest any order that
they have agreed not to oppose or contest under clauses (1) through (4) of
Section 5.1(a).

 

SECTION 5.2.  Relief from
the Automatic Stay.  (a) The
Parity Junior Lien Collateral Agent, for itself and on behalf of the other
Parity Junior Lien Secured Parties, agrees that, so long as the Discharge of
Priority Lien Obligations has not occurred, no Parity Junior Lien Secured Party
shall, without the prior written consent of the Priority Lien Collateral Agent,
seek or request relief from or modification of the automatic stay or any other
stay in any Insolvency or Liquidation Proceeding in respect of any part of the
Collateral, any proceeds thereof or any Parity Junior Lien.

 

(b)                                 Nothing contained in this Agreement
shall prohibit or in any way limit the Priority Lien Collateral Agent, prior to
the Discharge of Priority Lien Obligations, from objecting in any Insolvency or
Liquidation Proceeding or otherwise to any action taken by the Parity Junior
Lien Collateral Agent or any Parity Junior Lien Secured Party, including the
seeking by the Parity Junior Lien Collateral Agent or any Parity Junior Lien
Secured Party of adequate protection or the asserting by the Parity Junior Lien
Collateral Agent or any Parity Junior Lien Secured Party of any of its rights
and remedies under the Parity Junior Lien Documents or otherwise; provided that this Section 5.2(b) shall
not in any way affect the provisions of Section 2.3, Section 2.6
(relating to Parity Junior Lien Permitted Actions) or Section 2.14(a); and
provided  further that the Priority Lien Collateral
Agent shall not object to the Parity Junior Lien Collateral Agent or the Parity
Junior Lien Secured Parties seeking to obtain or maintain Parity Junior Liens
on any asset or property constituting Priority Lien Collateral.

 

SECTION 5.3.  Certain
Waivers by the Parity Junior Lien Secured Parties.  The Parity Junior Lien Collateral Agent, for
itself and on behalf of the other Parity Junior Lien Secured Parties, waives
any claim any Parity Junior Lien Secured Party may hereafter have against any
Priority Lien Secured Party arising out of (a) the election by any
Priority Lien Secured Party of the application of Section 1111(b)(2) of
the Bankruptcy Code, or any comparable provision of any other Bankruptcy Law,
or (b) any cash collateral or financing arrangement, or any grant of a
security interest or other Lien in the Collateral, in any Insolvency or
Liquidation Proceeding.

 

ARTICLE VI

 

MISCELLANEOUS
PROVISIONS

 

SECTION 6.1.  Amendment
of this Agreement; Waiver.  No
failure or delay on the part of any party hereto in exercising any power or
right hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power.  The rights and remedies of the parties hereto
are cumulative and are not exclusive of any rights or remedies that they would
otherwise have.  No waiver of any provision
of this Agreement or consent to any departure by any party

 

29

 

therefrom shall in any event be
effective unless the same shall be permitted by the next sentence of this Section 6.1,
and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given. 
Neither this Agreement nor any provision hereof may be waived, amended
or modified except pursuant to an agreement or agreements in writing entered
into by each Agent; provided that
no such agreement shall amend, modify or otherwise affect the rights or
obligations of any Grantor without such person’s prior written consent.

 

SECTION 6.2.  Further
Assurances.  Each of the Priority
Lien Collateral Agent, for itself and on behalf of the Priority Lien
Representatives and the other holders of Priority Lien Obligations, and the
Parity Junior Lien Collateral Agent, for itself and on behalf of the Parity
Junior Lien Representatives and the other holders of Parity Junior Lien
Obligations, and each Grantor party hereto, for itself and on behalf of its
subsidiaries, agrees that it will execute, or will cause to be executed, any
and all further documents, agreements and instruments, and take all such
further actions, as may be required under any applicable law, or which either
Agent may reasonably request, to effectuate the terms of this Agreement,
including the relative Lien priorities provided for herein.

 

SECTION 6.3.  Delivery of
Collateral and Proceeds of Collateral. 
Following the Discharge of Priority Lien Obligations, the Priority Lien
Collateral Agent will, to the extent permitted by applicable law, deliver to (1) if
the Parity Lien Obligations are outstanding at such time, the Parity Junior
Lien Collateral Agent, (2) such other Person as a court of competent
jurisdiction may otherwise direct, or (3) if no Parity Junior Lien
Obligations are then outstanding and a court of competent jurisdiction has not
otherwise directed, the applicable Grantor (a) any Collateral held by, or
on behalf of, the Priority Lien Collateral Agent or any holder of Priority Lien
Obligations pursuant to the Priority Lien Documents including the transfer of
possession and control, as applicable, of the Pledged or Controlled Collateral,
together with any necessary endorsements, and assign its rights under any
landlord waiver or bailee’s letter or any similar agreement or arrangement
granting it rights or access to Collateral, and (b) all proceeds of
Collateral held by, or on behalf of, the Priority Lien Collateral Agent or any
holder of Priority Lien Obligations pursuant to the Priority Lien Documents,
whether arising out of an action taken to enforce, collect or realize upon any
Collateral or otherwise. Such Collateral and such proceeds will be delivered
without recourse and without any representation or warranty whatsoever as to
the enforceability, perfection, priority or sufficiency of any Lien securing or
guarantee or other supporting obligation for any Priority Lien Debt or Parity
Junior Lien Debt or otherwise, together with any necessary endorsements or as a
court of competent jurisdiction may direct. 
In connection with any transfer under this Section 6.3, the
Priority Lien Collateral Agent agrees at the sole cost and expense of the
Parity Junior Lien Collateral Agent or Holdings or the other Grantors to take
all commercially reasonable actions in its power as shall be reasonably
requested by the Parity Junior Lien Collateral Agent to permit the Parity
Junior Lien Collateral Agent to obtain, for the benefit of the holders of
Parity Junior Lien Obligations, a first priority security interest in the
Pledged or Controlled Collateral.

 

SECTION 6.4.  Successors
and Assigns.  Neither Holdings nor
any other Grantor may delegate any of its duties or assign any of its rights
hereunder, and any attempted delegation or assignment of any such duties or
rights will be null and void.  All
obligations of Holdings and the other Grantors hereunder will inure to the sole
and exclusive benefit of, and be enforceable by, each Agent, each Secured Debt
Representative and each present and future holder of Secured

 

30

 

Obligations, each of whom will
be entitled to enforce this Agreement as a third-party beneficiary hereof, and
all of their respective successors and assigns.

 

SECTION 6.5.  Delay and
Waiver.  No failure to exercise, no
course of dealing with respect to the exercise of, and no delay in exercising,
any right, power or remedy arising under this Agreement or any of the other
Security Documents or Priority Lien Security Documents will impair any such
right, power or remedy or operate as a waiver thereof.  No single or partial exercise of any such
right, power or remedy will preclude any other or future exercise thereof or
the exercise of any other right, power or remedy.  The remedies herein are cumulative and are
not exclusive of any remedies provided by law.

 

SECTION 6.6.  Notices;
Officer’s Certificates.  (a) 
Notices and other communications provided for herein shall be in writing and
shall be delivered by hand or by nationally recognized overnight courier
service, mailed by certified or registered mail or sent by fax, as follows:

 

(1)                                  if to Holdings or any other Grantor,
to such party c/o Neff Rental LLC, 3750 N.W. 87th Avenue, Suite 400,
Miami, Florida  33178, Attention of Chief Financial Officer (Fax No. 
(305) 513-4156);

 

(2)                                  if to the Priority Lien Collateral
Agent, to General Electric Capital Corporation, 401 Merritt Seven,
2nd Floor, Norwalk, Connecticut  06851, Attention of Neff Corp.
Account Manager (Fax No.  (203) 229-1415); and

 

(3)                                  if to the Parity Junior Lien
Collateral Agent, to Wells Fargo Bank, National Association, at 213 Court
Street, Suite 703, Middletown, Connecticut  06457, Attention of
Joseph O’Donnell (Fax No. (860) 704-6219).

 

All notices and other communications given to
any party hereto in accordance with the provisions of this Agreement shall be
deemed to have been given on the date of receipt if delivered by hand or by
nationally recognized overnight courier service or sent by fax or on the date
five Business Days after dispatch by certified or registered mail if mailed, in
each case delivered, sent or mailed (properly addressed) to such party as
provided in this Section 6.6(a) or in accordance with the latest
unrevoked direction from such party given in accordance with this Section 6.6(a).

 

(b)                                 Each Officer’s Certificate delivered
pursuant to any provision of this Agreement shall include or be accompanied by
reasonably detailed information as to the facts and circumstances surrounding
the event or other occurrence requiring the delivery of such Officer’s
Certificate.

 

SECTION 6.7.  Notice
Following Discharge of Priority Lien Obligations.  Promptly following the Discharge of Priority
Lien Obligations with respect to one or more Series of Priority Lien Debt,
each Priority Lien Representative with respect to each applicable Series of
Priority Lien Debt that is so discharged will provide written notice of such
Discharge to Holdings, each Agent and to each other Secured Debt
Representative.

 

SECTION 6.8.  Entire
Agreement.  This Agreement states the
complete agreement of the parties relating to the matters set forth herein and
supersedes all oral negotiations and prior

 

31

 

writings in respect of such
undertaking. In the event of any conflict between the terms, conditions and
provisions of this Agreement and any such agreement, document or instrument or
any other Security Document, the terms, conditions and provisions of this
Agreement shall prevail.

 

SECTION 6.9.  Severability;
Continuing Nature of this Agreement. 
In the event any one or more of the provisions contained in this
Agreement should be held invalid, illegal or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions contained
herein shall not in any way be affected or impaired thereby (it being
understood that the invalidity of a particular provision in a particular
jurisdiction shall not in and of itself affect the validity of such provision
in any other jurisdiction).  The parties
shall endeavor in good-faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.  This is a continuing
agreement of lien subordination and the Priority Lien Secured Parties may
continue, at any time and without notice to the Parity Junior Lien Collateral
Agent or any holder of Parity Junior Lien Obligations, to extend credit or
other financial accommodations and lend monies to or for the benefit of
Holdings, Neff Rental or any other Grantor constituting Priority Lien
Obligations in reliance on this Agreement. 
The terms of this Agreement shall survive, and shall continue in full
force and effect, in any Insolvency or Liquidation Proceeding.

 

SECTION 6.10.  Subrogation.  The Parity Junior Lien Collateral Agent, for
itself and on behalf of the other Parity Junior Lien Secured Parties, hereby
waives any rights of subrogation it or they may acquire as a result of any
payment hereunder until the Discharge of Priority Lien Obligations has
occurred; provided, however, that, as between the Grantors, on the one hand, and
the Parity Junior Lien Secured Parties, on the other hand, any such payment
that is paid over to the Priority Lien Collateral Agent pursuant to this
Agreement shall be deemed not to reduce any of the Parity Junior Lien
Obligations.

 

SECTION 6.11.  Headings.  Article and Section headings used
herein and the Table of Contents hereto are for convenience of reference only,
are not part of this Agreement and are not to affect the construction of, or to
be taken into consideration in interpreting, this Agreement.

 

SECTION 6.12.  Governing
Law; Consent to Jurisdiction.  (a) 
THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS
OF THE STATE OF NEW YORK.

 

(b)                                 Each party hereto hereby irrevocably
and unconditionally submits, for itself and its property, to the nonexclusive
jurisdiction of any New York State court or Federal court of the United
States of America sitting in New York City, and any appellate court from
any thereof, in any action or proceeding arising out of or relating to this
Agreement, or for recognition or enforcement of any judgment, and each of the
parties hereto hereby irrevocably and unconditionally agrees that all claims in
respect of any such action or proceeding may be heard and determined in such
New York State or, to the extent permitted by law, in such Federal
court.  Each party hereto agrees that a
final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.  Nothing in this
Agreement shall affect any right that any party hereto

 

32

 

may otherwise have to bring any action or
proceeding relating to this Agreement in the courts of any jurisdiction.

 

(c)                                  Each party hereto hereby irrevocably
and unconditionally waives, to the fullest extent it may legally and
effectively do so, any objection which it may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to
this Agreement in any New York State or Federal court.  Each party hereto hereby irrevocably waives,
to the fullest extent permitted by law, the defense of an inconvenient forum to
the maintenance of such action or proceeding in any such court.

 

(d)                                 Each party to this Agreement
irrevocably consents to service of process in the manner provided for notices
in Section 6.6(a).  Nothing in this
Agreement will affect the right of any party to this Agreement to serve process
in any other manner permitted by law.

 

SECTION 6.13.  Waiver of
Jury Trial.   EACH PARTY HERETO
HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING
OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT.

 

SECTION 6.14.  Parties in
Interest.  This provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns, as well as the other Secured
Parties, all of whom are intended to be bound by, and to be third party
beneficiaries of, this Agreement.  No
other person shall have or be entitled to assert rights or benefits hereunder.

 

SECTION 6.15.  Specific
Performance.  Each Agent may demand
specific performance of this Agreement and, on behalf of itself and the
respective other Secured Parties, hereby irrevocably waives any defense based
on the adequacy of a remedy at law and any other defense that might be asserted
to bar the remedy of specific performance in any action which may be brought by
the respective Secured Parties.

 

SECTION 6.16.  Counterparts.  This Agreement may be executed in any number
of counterparts (including by facsimile), each of which when so executed and
delivered will be deemed an original, but all such counterparts together will
constitute but one and the same instrument.

 

SECTION 6.17.  Provisions
Solely to Define Relative Rights. 
The provisions of this Agreement are and are intended solely for the
purpose of defining the relative rights of the holders of Priority Lien
Obligations, on the one hand, and the holders of Parity Junior Lien
Obligations, on the other hand.  Except
as expressly provided in (a) Sections 2.4, 2.5, clause (ii) of
the proviso of 2.15(c), 3.2, 6.4, 6.10 and 6.19, none of Holdings or any
Grantor or any other creditor thereof shall have any obligations hereunder and (b) Section 3.2,
none of Holdings or any other Grantor or any other creditor thereof shall have
any rights hereunder, and none of Holdings or any other Grantor may rely on the
terms hereof.  Nothing in this Agreement
is intended to or shall impair the obligations of Holdings or any other
Grantor, which are absolute

 

33

 

and unconditional, to pay the
Priority Lien Obligations and the Parity Junior Lien Obligations as and when
the same shall become due and payable in accordance with their terms.

 

SECTION 6.18.  Effectiveness;
Survival.  This Agreement shall
become effective when executed and delivered by the parties hereto.  All covenants, agreements, representations
and warranties made by any party in this Agreement shall be considered to have
been relied upon by the other parties hereto and shall survive the execution
and delivery of this Agreement.  The
terms of this Agreement shall survive, and shall continue in full force and
effect, in any Insolvency or Liquidation Proceeding.  The Parity Junior Lien Collateral Agent, for
itself and on behalf of the holders of Parity Junior Lien Obligations, hereby
waives any and all rights the holders of Parity Junior Lien Obligations may now
or hereafter have under applicable law to revoke this Agreement or any of the
provisions of this Agreement.

 

SECTION 6.19.  Additional
Grantors.  Holdings will cause each
Person that becomes a Grantor or is required by any Secured Debt Document to
become a party to this Agreement to become a party to this Agreement, for all
purposes of this Agreement, by causing such Person to execute and deliver to
the parties hereto an Intercreditor Agreement Joinder, whereupon such Person
will be bound by the terms hereof to the same extent as if it had executed and
delivered this Agreement as of the date hereof. 
Holdings shall promptly provide each Secured Debt Representative and
each Collateral Agent with a copy of each Intercreditor Agreement Joinder
executed and delivered pursuant to this Section 6.19.

 

SECTION 6.20.  Insolvency.  This Agreement will be applicable both before
and after the commencement of any Insolvency or Liquidation Proceeding by or
against any Grantor.  The relative
rights, as provided for in this Agreement, will continue after the commencement
of any such Insolvency or Liquidation Proceeding on the same basis as prior to
the date of the commencement of any such case, as provided in this Agreement.

 

SECTION 6.21.  Rights and
Immunities of Secured Debt Representatives. 
The Credit Agreement Agent and the Priority Lien Collateral Agent will
be entitled to all of the rights, protections, immunities and indemnities set
forth in the Credit Agreement and the applicable Secured Debt Documents, the
Trustee and the Parity Junior Lien Collateral Agent will be entitled to all of
the rights, protections, immunities and indemnities set forth in the Indenture
and the applicable Secured Debt Documents and any future Secured Debt
Representative will be entitled to all of the rights, protections, immunities
and indemnities set forth in the applicable Secured Debt Documents with respect
to which such Person will act as representative, in each case as if specifically
set forth herein.  In no event will any
Secured Debt Representative be liable for any act or omission on the part of
the Grantors, the Priority Lien Collateral Agent or the Parity Junior Lien
Collateral Agent hereunder.

 

SECTION 6.22.  Conflicts.  In the event of any conflict or inconsistency
between the provisions of this Agreement and the provisions of the other Credit
Documents, the provisions of this Agreement shall control.

 

SECTION 6.23.  No
Reliance; Information.  (a)  The
Priority Lien Collateral Agent, for itself and on behalf of the holders of
Priority Lien Obligations, acknowledges that (i) the holders of Priority
Lien Obligations have independently and without reliance upon any holder of
Parity

 

34

 

Junior Lien Obligations, and
based on such documents and information as they have deemed appropriate, made
their own credit analysis and decision to enter into the Priority Lien
Documents to which they are party and (ii) the holders of Priority Lien
Obligations will independently and without reliance upon any holder of Parity
Junior Lien Obligations and based on such documents and information as they
shall from time to time deem appropriate, continue to make their own credit
decision in taking or not taking any action under this Agreement or any other
Priority Lien Document to which they are party. 
The holders of Priority Lien Obligations shall have no duty to disclose
to any holder of Parity Junior Lien Obligations any information relating to
Holdings, any other Grantor or any of their Subsidiaries, or any other
circumstance bearing upon the risk of nonpayment of any of the Obligations,
that is known or becomes known to any of them or any of their Affiliates.  In the event any holder of Priority Lien
Obligations, in its sole discretion, undertakes at any time or from time to
time to provide any such information to any holder of Parity Junior Lien
Obligations, it shall be under no obligation (A) to make, and shall not
make or be deemed to have made, any express or implied representation or
warranty, including with respect to the accuracy, completeness, truthfulness or
validity of the information so provided, (B) to provide any additional
information or to provide any such information on any subsequent occasion or (C) to
undertake any investigation.

 

(b)                                 The Parity Junior Lien Collateral
Agent, for itself and on behalf of the holders of Parity Junior Lien
Obligations, acknowledges that (i) the holders of Parity Junior Lien
Obligations have independently and without reliance upon any holder of Priority
Lien Obligations, and based on such documents and information as they have
deemed appropriate, made their own credit analysis and decision to enter into
the Parity Junior Lien Documents to which they are party and (ii) the
holders of Parity Junior Lien Obligations will independently and without
reliance upon any holder of Priority Lien Obligations and based on such
documents and information as they shall from time to time deem appropriate,
continue to make their own credit decision in taking or not taking any action
under this Agreement or any other Parity Junior Lien Document to which they are
party.  The holders of Parity Junior Lien
Obligations shall have no duty to disclose to any holder of Priority Lien
Obligations any information relating to Holdings, any other Grantor or any of
their Subsidiaries, or any other circumstance bearing upon the risk of
nonpayment of any of the Obligations, that is known or becomes known to any of
them or any of their Affiliates.  In the
event any holder of Parity Junior Lien Obligations, in its sole discretion,
undertakes at any time or from time to time to provide any such information to
any holder of Priority Lien Obligations, it shall be under no obligation (A) to
make, and shall not make or be deemed to have made, any express or implied
representation or warranty, including with respect to the accuracy,
completeness, truthfulness or validity of the information so provided, (B) to
provide any additional information or to provide any such information on any
subsequent occasion or (C) to undertake any investigation.

 

SECTION 6.24.  No
Warranties or Liability.  (a) 
The Priority Lien Collateral Agent, for itself and on behalf of the holders of
Priority Lien Obligations, acknowledges and agrees that, except for the
representations and warranties set forth in Article IV, neither the Parity
Junior Lien Collateral Agent nor any other holder of Parity Junior Lien
Obligations has made any express or implied representation or warranty, including
with respect to the execution, validity, legality, completeness, collectibility
or enforceability of any of the Parity Junior Lien Documents, the ownership of
any Collateral or the perfection or priority of any Liens thereon.  The Parity Junior Lien Collateral Agent, for
itself and on behalf of the holders of Parity Junior

 

35

 

Lien Obligations, acknowledges
and agrees that, except for the representations and warranties set forth in Article IV,
neither the Priority Lien Collateral Agent nor any other holder of Priority
Lien Obligations has made any express or implied representation or warranty,
including with respect to the execution, validity, legality, completeness,
collectibility or enforceability of any of the Priority Lien Documents, the
ownership of any Collateral or the perfection or priority of any Liens thereon.

 

(b)                                 The Parity Junior Lien Collateral
Agent and the holders of Parity Junior Lien Obligations shall have no express
or implied duty to the Priority Lien Collateral Agent or any holder of Priority
Lien Obligations, and the Priority Lien Collateral Agent and the holders of
Priority Lien Obligations shall have no express or implied duty to the Parity
Junior Lien Collateral Agent or any holder of Parity Junior Lien Obligations,
in each case to act or refrain from acting in a manner which allows, or results
in, the occurrence or continuance of a default or an event of default under any
Priority Lien Document and any Parity Junior Lien Document (other than, in each
case, this Agreement), regardless of any knowledge thereof which they may have
or be charged with.

 

(c)                                  The Parity Junior Lien Collateral
Agent, for itself and on behalf of the holders of Parity Junior Lien
Obligations, agrees no holder of Priority Lien Obligations shall have any
liability to the Parity Junior Lien Collateral Agent or any other holder of
Parity Junior Lien Obligations, and hereby waives any claim against any holder
of Priority Lien Obligations, arising out of any and all actions which the
Priority Lien Collateral Agent or the holders of Priority Lien Obligations may
take or permit or omit to take, with respect to (i) the Priority Lien
Documents (other than this Agreement), (ii) the collection of the Priority
Obligations or (iii) the maintenance of, the preservation of, the
foreclosure upon or the Disposition of any Collateral or the failure to give
notices hereunder.

 

SECTION 6.25.  Reinstatement.  If, in any Insolvency or Liquidation
Proceeding or otherwise,  all or part of any
payment with respect to the Priority Lien Obligations previously made shall be
rescinded for any reason whatsoever, then the Priority Lien Obligations shall
be reinstated to the extent of the amount so rescinded and, if theretofore
terminated, this Agreement shall be reinstated in full force and effect and
such prior termination shall not diminish, release, discharge, impair or
otherwise affect the Lien priorities and the relative right s and obligations
of the Priority Lien Secured Parties and the Parity Junior Lien Secured Parties
provided for herein.

 

SECTION 6.26.  Compliance
with Trust Indenture Act.  Nothing
contained herein shall impair the ability of the Trustee to take any action
necessary to comply with any obligations imposed under applicable law,
including without limitation, the Trust Indenture Act.

 

36

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be duly executed by their respective authorized
officers as of the day and year first above written.

 

	
   

  	
  NEFF RENTAL LLC

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NEFF FINANCE CORP.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
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  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NEFF RENTAL, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GENERAL ELECTRIC CAPITAL

  	
   

  
	
   

  	
  CORPORATION, as Credit Agreement Agent and

  	
   

  
	
   

  	
  as Priority Lien Collateral Agent

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
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  Title:

  	
   

  

 

S-1

 

	
   

  	
  WELLS FARGO BANK, NATIONAL

  	
   

  
	
   

  	
  ASSOCIATION, as Trustee and as Parity
  Junior

  	
   

  
	
   

  	
  Lien 
  Collateral Agent

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

S-2

 

EXHIBIT A

to Intercreditor Agreement

 

[FORM OF]

INTERCREDITOR AGREEMENT JOINDER

 

The undersigned,                                           ,
a                          ,
hereby agrees to become party as [a Grantor] [a Priority Lien Representative]
[a Parity Junior Lien Representative] under the Intercreditor Agreement dated
as of July 8, 2005 (the “Intercreditor Agreement”), among Neff Rental LLC and
Neff Finance Corp. (collectively, “Holdings”), Neff Rental, Inc., the other
Grantors (such term and each other capitalized term used but not defined herein
having the meaning set forth in the Intercreditor Agreement) from time to time
party thereto, the Credit Agreement Agent under the Credit Agreement and as
Priority Lien Collateral Agent, and Wells Fargo Bank, National Association, as
Trustee and as Parity Junior Lien Collateral Agent, as amended, supplemented,
amended and restated or otherwise modified and in effect from time to time, for
all purposes thereof on the terms set forth therein, and to be bound by the
terms of the Intercreditor Agreement as fully as if the undersigned had
executed and delivered the Intercreditor Agreement as of the date thereof.

 

[To be included in Intercreditor Agreement
Joinders executed by Priority Lien Representatives:

 

The undersigned
[                 ]
further agrees:

 

(a)                                  that all Priority Lien Obligations
will be and are secured equally and ratably by all Priority Liens at any time
granted by Holdings or any other Grantor to secure any Obligations in respect
of [Series of Priority Lien Debt], whether or not upon property otherwise
constituting collateral for [Series of Priority Lien Debt], and that all
such Priority Liens will be enforceable by the Priority Lien Collateral Agent
for the benefit of all holders of Priority Lien Obligations equally and
ratably; and

 

(b)                                 that the [Series of Priority
Lien Debt] Secured Parties are bound by the provisions of the Intercreditor
Agreement, including the provisions relating to the ranking of Priority Liens
and the order of application of proceeds from enforcement of Priority Liens.

 

[If applicable:  The undersigned 
[                 ]
further consents to and directs the Priority Lien Collateral Agent to perform
its obligations under the Intercreditor Agreement and the other Priority Lien
Security Documents.

 

or

 

The
undersigned 
[                 ]
certifies that it has entered into a separate intercreditor agreement with the
Priority Lien Collateral Agent governing the relative rights of the holders of
each Series of Priority Lien Debt in respect of the Priority Lien
Collateral.]]

 

 

[To be included in Intercreditor Agreement
Joinders executed by Parity Junior Lien Representatives:

 

The undersigned 
[                 ]
further agrees:

 

(c)                                  that all Parity Junior Lien
Obligations will be and are secured equally and ratably by all Parity Junior
Liens at any time granted by Holdings or any other Grantor to secure any
Obligations in respect of [Series of Parity Junior Lien Debt], whether or
not upon property otherwise constituting collateral for [Series of Parity
Junior Lien Debt], and that all such Parity Junior Liens will be enforceable by
the Parity Junior Lien Collateral Agent for the benefit of all holders of
Parity Junior Lien Obligations equally and ratably; and

 

(d)                                 that the [Series of Parity
Junior Lien Debt] Secured Parties are bound by the provisions of the
Intercreditor Agreement, including the provisions relating to the ranking of
Parity Junior Liens and the order of application of proceeds from enforcement
of Parity Junior Liens.

 

[If applicable:  The undersigned 
[                 ]
further consents to and directs the Parity Junior Lien Collateral Agent to
perform its obligations under the Intercreditor Agreement and the other Parity
Junior Lien Security Documents.

 

or

 

The undersigned 
[                 ]
certifies that it has entered into a separate intercreditor agreement with the
Parity Junior Lien Collateral Agent governing the relative rights of the
holders of each Series of Parity Junior Lien Debt in respect of the Parity
Junior Lien Collateral.]]

 

Notices and other communications provided for
in the Intercreditor Agreement shall be delivered by hand or by nationally
recognized overnight courier service, mailed by certified or registered mail or
sent by fax to the undersigned as follows:

 

[Address and Fax Number of undersigned].

 

The provisions of Section [4.1][4.2] and
Article VI of the Intercreditor Agreement will apply with like effect to
this Joinder.

 

IN WITNESS WHEREOF, the parties hereto have
caused this Intercreditor Agreement Joinder to be executed by their respective
officers or representatives as of                                      ,
20      .

 

[                                                                        ]

 

S-2

 

	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

For purposes of Section 3.2(a) of the

Intercreditor Agreement, the undersigned hereby

acknowledges and accepts this Intercreditor Agreement Joinder.

 

[Credit Agreement Agent][Indenture Parity Junior Lien Collateral Agent]

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

S-3EXHIBIT 10.4

 

EXECUTION COPY

 

SECURITY
AGREEMENT

 

SECURITY AGREEMENT dated as of July 8, 2005 (together with all
amendments, if any, from time to time hereto, this “Agreement”), by and
among NEFF RENTAL LLC, a Delaware limited liability company (“Neff LLC”),
NEFF FINANCE CORP., a Delaware corporation (“Neff Finance” and, together
with Neff LLC, the “Borrowers” and each, a “Borrower”), NEFF
RENTAL, INC., a Florida corporation (“NEFF”) and each other Person which
becomes party hereto as Grantor pursuant to Section 19 of this Agreement
(such Persons, together with the Borrowers and NEFF, collectively, the “Grantors”
and each, a “Grantor”) and WELLS FARGO BANK, NATIONAL ASSOCIATION, as
collateral agent (in such capacity, the “Agent”) for the benefit of the
Secured Parties (as defined below).

 

W I T N E S S E T H:

 

WHEREAS, pursuant to the Indenture dated as of the date hereof (as from
time to time amended, restated, supplemented or otherwise modified, the “Indenture”),
among the Borrowers, NEFF, each of the other Persons named therein as a
Guarantor (as defined in the Indenture) and Wells Fargo Bank, National
Association, as Trustee, the Borrowers are co-issuing $245,000,000 aggregate
principal amount of their 111⁄4% Second Priority Senior Secured Notes Due 2012
and may issue, from time to time, additional notes in accordance with the
provisions of the Indenture (collectively, the “Notes”);

 

WHEREAS, each Grantor will derive direct and indirect economic benefits
from the issuance of the Notes and other financial accommodations provided to
the Borrowers and the other Grantors pursuant to the Indenture;

 

WHEREAS, in order to induce the Agent to enter into the Indenture and the
other Note Documents, each Grantor has agreed to grant a continuing Lien on the
Collateral (as hereinafter defined) to secure the Note Obligations;

 

NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained and to induce the Trustee to enter into the Indenture and the
other Note Documents, it is agreed as follows:

 

1.                                       Defined
Terms.

 

(a)                                  All
capitalized terms used but not otherwise defined herein have the meanings given
to them in the Indenture.  All other
terms contained in this Agreement, unless the context indicates otherwise, have
the meanings provided for by the Code to the extent the same are used or
defined therein.

 

(b)                                 The following terms
shall have the meanings assigned thereto in the Code:  as-extracted collateral, chattel paper,
commodities intermediary, commercial tort claim, deposit account, electronic
chattel paper, financial asset, letter-of-credit right, payment intangibles,

 

 

proceeds, securities intermediary, software, timber to
be cut, supporting obligation and uncertificated securities.

 

(c)                                  As
used herein, the following terms shall have the meaning set forth below:

 

“Account Debtor” means any Person who may become obligated to
any Credit Party under, with respect to, or on account of, an Account, Chattel
Paper or General Intangibles (including a payment intangible).

 

“Accounts” means all “accounts,” as such term is defined in the
Code, now owned or hereafter acquired by any Credit Party, including (a) all
accounts receivable, other receivables, book debts, Rental Payments and other
forms of obligations (other than, except in the case of Rental Payments, forms
of obligations evidenced by Chattel Paper or Instruments), (including any such
obligations that may be characterized as an account or contract right under the
Code), (b) all of each Credit Party’s rights in, to and under all purchase
orders or receipts for goods or services, (c) all of each Credit Party’s
rights to any goods represented by any of the foregoing (including unpaid
sellers’ rights of rescission, replevin, reclamation and stoppage in
transit and rights to returned, reclaimed or repossessed goods), (d) all
rights to payment due to any Credit Party for property sold, leased, licensed,
assigned or otherwise disposed of, for a policy of insurance issued or to be
issued, for a secondary obligation incurred or to be incurred, for energy
provided or to be provided, for the use or hire of a vessel under a charter or
other contract, arising out of the use of a credit card or charge card, or for
services rendered or to be rendered by such Credit Party or in connection with
any other transaction (whether or not yet earned by performance on the part of
such Credit Party), (e) all healthcare insurance receivables, and (f) all
collateral security of any kind, now or hereafter in existence, given by any
Account Debtor or other Person with respect to any of the foregoing.

 

“Blocked Account” means each Deposit Account that is subject to a
Control Agreement.

 

“Blocked Account Bank” means each depositary bank that is party to
a Control Agreement.

 

“Capital Lease” means, with respect to any Person, any lease of
any property (whether real, personal or mixed) by such Person as lessee that,
in accordance with GAAP, would be required to be classified and accounted for
as a capital lease on a balance sheet of such Person.

 

“Cash Equivalents” means:

 

(a) marketable securities (i) issued or directly and
unconditionally guaranteed as to interest and principal by the United States
government or (ii) issued by any agency of the United States government
the obligations of which are backed by the full faith and credit of the United
States, in each case maturing within one (1) year after acquisition
thereof;

 

 

(b) marketable direct obligations issued by any state of the
United States of America or any political subdivision of any such state or any
public instrumentality thereof, in each case maturing within one year after
acquisition thereof and having, at the time of acquisition, a rating of at
least A-1 from S&P or at least P-1 from Moody’s;

 

(c) commercial paper maturing no more than one year from the date
of acquisition and, at the time of acquisition, having a rating of at least A-1
from S&P or at least P-1 from Moody’s;

 

(d) certificates of deposit or bankers’ acceptances issued or
accepted by any commercial bank organized under the laws of the United States
of America or any state thereof or the District of Columbia that is at least (i) ”adequately
capitalized” (as defined in the regulations of its primary Federal banking
regulator) and (ii) has Tier 1 capital (as defined in such regulations) of
not less than $250,000,000, in each case maturing within one year after
issuance or acceptance thereof; and

 

(e) shares of any money market mutual or similar funds that (i) has
substantially all of its assets invested continuously in the types of
investments referred to in clauses (a) through (d) above, (ii) has
net assets of not less than $500,000,000 and (iii) has the highest rating
obtainable from either S&P or Moody’s.

 

“Chattel Paper” means any “chattel paper,” as such term is
defined in the Code, including electronic chattel paper, now owned or hereafter
acquired by any Credit Party, wherever located.

 

“Code” means the Uniform Commercial Code as the same may, from
time to time, be enacted and in effect in the State of New York; provided,
that to the extent that the Code is used to define any term herein or in any
Note Document and such term is defined differently in different Articles of the
Code, the definition of such term contained in Article 9 shall govern;
provided further, that in the event that, by reason of mandatory provisions of
law, any or all of the attachment, perfection or priority of, or remedies with
respect to, the Agent’s or any Secured Party’s Lien on any Collateral is
governed by the Uniform Commercial Code as enacted and in effect in a
jurisdiction other than the State of New York, the term “Code” shall mean the
Uniform Commercial Code as enacted and in effect in such other jurisdiction
solely for purposes of the provisions thereof relating to such attachment,
perfection, priority or remedies and for purposes of definitions related to
such provisions.

 

“Collateral” has the meaning specified in Section 2(a).

 

“Concentration Account” means any cash collateral account (which
may be a deposit account or a securities account) that is (a) established
by the Designated Agent from time to time in its sole discretion to receive
cash and Cash Equivalents (or purchase cash or Cash Equivalents with funds
received) from the Credit Parties or Persons acting on their behalf pursuant to
the Note Documents, (b) with such depositaries and securities
intermediaries as the

 

 

Designated
Agent may determine in its sole discretion, (c) in the name of the
Designated Agent (although such account may also have words referring to the
Borrowers and the account’s purpose), (d) under the control of the
Designated Agent and (e) in the case of a securities account, with respect
to which the Designated Agent shall be the Entitlement Holder (as defined in
the Code) and the only Person authorized to give Entitlement Orders (as defined
in the Code).

 

“Contractual Obligations” means, as applied to any Person, any
indenture, mortgage, deed of trust, contract, undertaking, agreement or other
instrument to which that Person is a party or by which it or any of its
properties is bound or to which it or any of its properties is subject.

 

“Control Agreements” means:

 

(a)                                  in
the case of any bank account, a tri-party deposit account control agreement by
and among the applicable Credit Party, the Designated Agent and the depository,
in form customarily signed by the Designated Agent and otherwise in form and
substance satisfactory in all respects to the Designated Agent (it being
understood a form customarily signed by the Designated Agent is satisfactory)
pursuant to which such depository acknowledges the security interest of the
Agent in the deposit account, agrees to comply with instructions originated by
the Designated Agent directing disposition of the funds in the bank account
without further consent from such Credit Party or Subsidiary, and agrees to subordinate
and limit any security interest the bank may have in such bank account on terms
satisfactory to the Designated Agent;

 

(b)                                 in
the case of any securities account, a tri-party securities account control
agreement by and among the applicable Credit Party, the Designated Agent and
the securities intermediary, in form customarily signed by the Designated Agent
and otherwise in form and substance satisfactory in all respects to the
Designated Agent (it being understood a form customarily signed by the Designated
Agent is satisfactory) pursuant to which such securities intermediary
acknowledges the security interest of the Agent in the securities account,
agrees to comply with instructions originated by the Designated Agent directing
disposition of the funds in the securities account without further consent from
such Credit Party or Subsidiary, and agrees to subordinate and limit any
security interest the securities intermediary may have in such securities
account on terms satisfactory to the Designated Agent; and

 

(c)                                  in
the case of any commodities account, a tri-party commodities account control
agreement by and among the applicable Credit Party, the Designated Agent and
the commodities intermediary, in form customarily signed by the Designated
Agent and otherwise in form and substance satisfactory in all respects to the
Designated Agent (it being understood a form customarily signed by the
Designated Agent is satisfactory) pursuant to which such commodities
intermediary acknowledges the security interest of the Agent in the commodities
account, agrees to comply with instructions originated by the Designated Agent
directing disposition of the funds in the commodities account

 

 

without further consent from such Credit Party or Subsidiary, and
agrees to subordinate and limit any security interest the commodities
intermediary may have in such commodities account on terms satisfactory to the
Designated Agent.

 

“Copyright License” means any and all rights nor owned or
hereafter acquired by any Credit Party under any written agreement granting any
right to use any Copyright or Copyright registration.

 

“Copyright Security Agreements” means the Copyright Security
Agreements made in favor of the Agent, on behalf of itself and the Secured
Parties, by each applicable Credit Party.

 

“Copyrights” means all of the following now owned or hereafter
adopted or acquired by any Credit Party: (a) all copyrights and General
Intangibles of like nature (whether registered or unregistered), all
registrations and recordings thereof, and all applications in connection
therewith, including all registrations, recordings and applications in the
United States Copyright Office or in any similar office or agency of the United
States, any state or territory thereof, or any other country or any political
subdivision thereof; and (b) all reissues, extensions or renewals thereof.

 

“Credit Parties” means each of the Borrowers, NEFF, each of
their respective Subsidiaries and each other Person, in each case, who executes
or becomes party to this Agreement as a “Grantor” or who executes a guarantee
of any Note Obligations or who grants a Lien on all or part of its assets or
properties to secure all or part of the Note Obligations.

 

“Designated Agent” means (a) prior to the discharge of all
Priority Lien Obligations, the ABL Facility Agent, and (b) at any time
after the discharge of all Priority Lien Obligations, the Agent.

 

“Documents” means any “document,” as such term is defined in the
Code, including electronic documents, now owned or hereafter acquired by any
Credit Party, wherever located.

 

“Domestic Person” means any “United States person” under and as
defined in Section 7701(a)(30) of the IRC.

 

“Domestic Subsidiary” with respect to any Person, means each
Subsidiary of such Person that is organized under the laws of a State of the
United States of America or under the laws of the United States of America.

 

“Eligible Credit Party” means each Domestic Subsidiary of either
of the Borrowers.

 

“Equipment” means all “equipment,” as such term is defined in
the Code, now owned or hereafter acquired by any Credit Party, wherever located
and, in any event, including

 

 

all such
Credit Party’s machinery and equipment, including processing equipment,
conveyors, machine tools, data processing and computer equipment, including
embedded software and peripheral equipment and all engineering, processing and
manufacturing equipment, office machinery, furniture, materials handling
equipment, tools, attachments, accessories, automotive equipment, trailers,
trucks, forklifts, molds, dies, stamps, motor vehicles, rolling stock and other
equipment of every kind and nature, trade fixtures and fixtures not forming a
part of real property, together with all additions and accessions thereto,
replacements therefor, all parts therefor, all substitutes for any of the
foregoing, fuel therefor, and all manuals, drawings, instructions, warranties
and rights with respect thereto, and all products and proceeds thereof and
condemnation awards and insurance proceeds with respect thereto.

 

“Excluded Equity” means any Voting Stock in excess of 65% of the
total outstanding Voting Stock of any direct Subsidiary of any Grantor that is
a Non-U.S. Person.  For the purposes of
this definition, “Voting Stock” means, as to any issuer, the issued and
outstanding shares of each class of Stock of such issuer entitled to vote
(within the meaning of Treasury Regulations § 1.956-2(c)(2)).

 

“Excluded Property” means, collectively, (i) Excluded
Equity, (ii) any permit, lease, license, contract, Instrument or other
agreement held by any Grantor that prohibits or requires the consent of any
Person other than either of the Borrowers, NEFF or their respective Affiliates
as a condition to the creation by such Grantor of a Lien thereon, or any
permit, lease, license, contract or other agreement held by any Grantor to the
extent that any laws applicable thereto prohibits the creation of a Lien
thereon, but only, in each case, to the extent, and for so long as, such
prohibition is not terminated or rendered unenforceable or otherwise deemed
ineffective by the Code (including, without limitation, pursuant to Sections 9-406,
9-407, 9-408 and 9-409 of the Code) or any other laws (including, without limitation,
the Bankruptcy Code) and (iii) Equipment owned by any Grantor that is
subject to a purchase money Lien or a Capital Lease if the contract or other
agreement in which such Lien is granted (or in the documentation providing for
such Capital Lease) prohibits or requires the consent of any Person other than either
of the Borrowers, NEFF or their respective Affiliates as a condition to the
creation of any other Lien on such Equipment; provided, however, “Excluded
Property” shall not include any Proceeds, substitutions or replacements of
Excluded Property (unless such Proceeds, substitutions or replacements would
constitute Excluded Property).

 

“Fixtures” means all “fixtures” as such term is defined in the
Code, now owned or hereafter acquired by any Credit Party.

 

“General Intangibles” means “general intangibles,” as such term
is defined in the Code, now owned or hereafter acquired by any Credit Party,
including all right, title and interest that such Credit Party may now or
hereafter have in or under any Contractual Obligation, all payment intangibles,
customer lists, Licenses, Copyrights, Trademarks, Patents, and all applications
therefor and reissues, extensions or renewals thereof, rights in Intellectual
Property, interests in partnerships, joint ventures and other business
associations, licenses, permits, copyrights, trade secrets, proprietary or
confidential information, inventions (whether or not 

 

 

patented or
patentable), technical information, procedures, designs, knowledge, know-how,
software, data bases, data, skill, expertise, experience, processes, models, drawings,
materials and records, goodwill (including the goodwill associated with any
Trademark or Trademark License), all rights and claims in or under insurance
policies (including insurance for fire, damage, loss and casualty, whether
covering personal property, real property, tangible rights or intangible
rights, all liability, life, key man and business interruption insurance, and
all unearned premiums), uncertificated securities, chooses in action, deposit,
checking and other bank accounts, rights to receive tax refunds and other
payments, rights to receive dividends, distributions, cash, Instruments and
other property in respect of or in exchange for pledged Stock and Investment
Property, rights of indemnification, all books and records, correspondence,
credit files, invoices and other papers, including all tapes, cards, computer
runs and other papers and documents in the possession or under the control of
such Credit Party or any computer bureau or service company from time to time
acting for such Credit Party.

 

“Goods” means any “goods,” as such term is defined in the Code,
now owned or hereafter acquired by any Credit Party, wherever located,
including embedded software to the extent included in “goods” as defined in the
Code, manufactured homes, standing timber that is cut and removed for sale and
unborn young of animals.

 

“Governmental Authority” means any nation or government, any
state or other political subdivision thereof, and any agency, department or
other entity exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government.

 

“Instruments” means all “instruments,” as such term is defined
in the Code, now owned or hereafter acquired by any Credit Party, wherever
located, and, in any event, including all certificated securities, all
certificates of deposit, and all promissory notes and other evidences of
indebtedness, other than instruments that constitute, or are a part of a group
of writings that constitute, Chattel Paper.

 

“Intellectual Property” means any and all Licenses, Patents,
Copyrights, Trademarks, and the goodwill associated with such Trademarks.

 

“Inventory” means any “inventory,” as such term is defined in
the Code, including Parts Inventory and Rental Fleet and Equipment, now owned or
hereafter acquired by any Credit Party, wherever located, including inventory,
merchandise, goods and other personal property that are held by or on behalf of
any Credit Party for sale or lease or are furnished or are to be furnished
under a contract of service, or that constitute raw materials, work in process,
finished goods, returned goods, supplies or materials of any kind, nature or
description used or consumed or to be used or consumed in such Credit Party’s
business or in the processing, production, packaging, promotion, delivery or
shipping of the same, including all supplies and embedded software.

 

“Investment Property” means all “investment property,” as such
term is defined in the Code, now owned or hereafter acquired by any Credit
Party, wherever located, including:

 

 

(a) all
securities, whether certificated or uncertificated, including stocks, bonds,
interests in limited liability companies, partnership interests, treasuries,
certificates of deposit, and mutual fund shares; (b) all securities
entitlements of any Credit Party, 
including the rights of such Credit Party to any securities account and
the financial assets held by a securities intermediary in such securities
account and any free credit balance or other money owing by any securities
intermediary with respect to that account; (c) all securities accounts of
any Credit Party; (d) all commodity contracts of any Credit Party; and (e) all
commodity accounts held by any Credit Party.

 

“Joinder Agreement” means a joinder agreement, in substantially
the form of Exhibit A hereto or such other documentation acceptable to the
Agent pursuant to which any Subsidiary of either of the Borrowers becomes a
party to this Agreement, the Pledge Agreement and the Intercreditor Agreement
after the date of this Agreement.

 

“License” means any Copyright License, Patent License, Trademark
License or other license of rights or interests now held or hereafter acquired
by any Credit Party.

 

“Material Adverse Effect” means a material adverse effect on (a) the
business, operations, condition (financial or otherwise), assets, liabilities
or properties of the Borrowers and their Subsidiaries, taken as a whole, (b) the
validity or enforceability of any Note Document, (c) or material
impairment of the ability of the Borrowers and the other Credit Parties to pay
and perform their respective Note Obligations under this Agreement or the other
Note Documents, (d) the Collateral or the Agent’s Liens, on behalf of the
Secured Parties, on the Collateral or the priority of such Liens, or (e) the
Agent’s or any Secured Party’s rights and remedies under this Agreement or the
other Note Documents.

 

“Neff Corp.” means Neff Corp., a Delaware corporation and owner
of 100% of the membership interests of Neff LLC.

 

“Non-U.S. Person” means any Person that is not a Domestic
Person.

 

“Note Obligations” means all Obligations owing by any Credit
Party arising under the Note Documents.

 

“Parts Inventory” means Inventory owned by either Borrower or
any Eligible Credit Party which consists of parts for Rental Fleet and
Equipment and parts to be sold or leased by such Person in the ordinary course
of business of such Person, which parts are not incorporated or installed in or
on, or affixed or appurtenant to, any such Inventory or to any other property
and which parts are new, unused, in good condition and are resalable as new
products without repackaging or reconditioning, including Inventory that either
Borrower or any such Eligible Credit Party currently describes as “inventory
(including whole goods)” but excluding any Inventory that constitutes Rental
Fleet and Equipment.

 

 

“Patent License” means rights under any written agreement now
owned or hereafter acquired by any Credit Party granting any right with respect
to any invention on which a Patent is in existence.

 

“Patent Security Agreements” means the Patent Security
Agreements made in favor of the Agent, on behalf of itself and the Secured
Parties, by each applicable Credit Party.

 

“Patents” means all of the following in which any Credit Party
now holds or hereafter acquires any interest: (a) all letters patent of
the United States or any other country, all registrations and recordings
thereof, and all applications for letters patent of the United States or of any
other country, including registrations, recordings and applications in the
United States Patent and Trademark Office or in any similar office or agency of
the United States, any State or any other country, and (b) all reissues,
continuations, continuations-in-part or extensions thereof.

 

“Pledge Agreement” means the Pledge Agreement of even date
herewith entered into by the Borrowers, NEFF and each other Credit Party that
is (or hereafter becomes) party thereto in favor of the Agent, for the benefit
of the Secured Parties, and any other pledge agreement entered into after the date
hereof by any Credit Party or any other Person.

 

“Power of Attorney” has the meaning specified in Section 7.

 

“Rental Fleet and Equipment” means Inventory which is of a type
offered for sale or lease by either Borrower or any Eligible Credit Party in
the ordinary course of business of the Borrower or any Eligible Credit Party,
including of Inventory that either Borrower or such Eligible Credit Party
currently described as “rental equipment, net” but excluding any Inventory that
constitutes Parts Inventory.

 

“Rental Payments” means rental payments due to either Borrower
or any of their Subsidiaries from the rental of Parts Inventory or Rental Fleet
and Equipment owned by such Person.

 

“Secured Parties” means, collectively, the Agent and the holders
of Note Obligations.

 

“Stock” means all shares, options, warrants, general or limited
partnership interests, membership interests or other equivalents (regardless of
how designated) of or in a corporation, partnership, limited liability company
or equivalent entity whether voting or nonvoting, including common stock,
preferred stock or any other “equity security” (as such term is defined in Rule 3a11-1
of the General Rules and Regulations promulgated by the SEC under the
Exchange Act).

 

“Termination Date” means the first date on which (a)(i) the
Notes have been repaid in full, (ii) there has been a satisfaction and
discharge of the Indenture as set forth under Article 8 of the Indenture
or (iii) there has been a Legal Defeasance or Covenant Defeasance of the
Notes as set forth under Article 8 of the Indenture and (b) all other
Obligations under the

 

 

Indenture and
the other Note Documents (other than contingent indemnification Obligations to
the extent no claim has been asserted) have been completely discharged.

 

“Trademark License” means rights under any written agreement now
owned or hereafter acquired by any Credit Party granting any right to use any
Trademark.

 

“Trademark Security Agreements” means the Trademark Security
Agreements made in favor of the Agent, on behalf of itself and the Secured
Parties, by each applicable Credit Party.

 

“Trademarks” means all of the following now owned or hereafter
adopted or acquired by any Credit Party: (a) all trademarks, trade names,
corporate names, business names, trade styles, service marks, logos, internet
domain names, other source or business identifiers, prints and labels on which
any of the foregoing have appeared or appear, designs and general intangibles
of like nature (whether registered or unregistered), all registrations and
recordings thereof, and all applications in connection therewith, including
registrations, recordings and applications in the United States Patent and
Trademark Office or in any similar office or agency of the United States, any
state or territory thereof, or any other country or any political subdivision
thereof; (b) all reissues, extensions or renewals thereof; and (c) all
goodwill associated with or symbolized by any of the foregoing.

 

“Uniform Commercial Code Jurisdiction” means any jurisdiction
that has adopted all or substantially all of Article 9 of the Code.

 

2.                                       Grant
of Lien.

 

(a)                                  To
secure the prompt and complete payment, performance and observance of all of
the Note Obligations, each Grantor
hereby grants, assigns, conveys, mortgages, pledges, hypothecates and transfers
to the Agent, for the benefit of the Secured Parties and their respective
successors, endorsees, transferees and assigns, a Lien upon all of its right,
title and interest in, to and under all personal property and other assets,
whether now owned by or owing to, or hereafter acquired by or arising in favor
of such Grantor (including under
any trade names, styles or derivations thereof), and whether owned or consigned
by or to, or leased from or to, such Grantor,
and regardless of where located (all of which being hereinafter collectively
referred to as the “Collateral”), including:

 

(i)                                     all
Accounts;

 

(ii)                                  all
Chattel Paper;

 

(iii)                               all
Documents;

 

(iv)                              all General
Intangibles (including Payment Intangibles and Software);

 

 

(v)                                 all
Goods (including Inventory, Equipment and Fixtures);

 

(vi)                              all
Instruments;

 

(vii)                           all
Investment Property;

 

(viii)                        all
Deposit Accounts;

 

(ix)                                all
money, cash or Cash Equivalents of such Grantor;

 

(x)                                   all
Supporting Obligations and Letter-of-Credit Rights of such Grantor;

 

(xi)                                the
Commercial Tort Claims described on Schedule V and on any supplement
thereto received by the Agent pursuant to Section 5(a)(ix); and

 

(xii)                             to
the extent not otherwise included, all Proceeds, tort claims, insurance claims
and other rights to payment not otherwise included in the foregoing and
products of the foregoing and all accessions to, substitutions and replacements
for, and rents and profits of, each of the foregoing;

 

provided,
however, that “Collateral” shall not include, nor shall security
interest granted under Section 2(a) hereof attach to, any Excluded
Property; and provided, further, that if and when any property
shall cease to be Excluded Property, immediately at and from such time, the
Collateral shall include, and the security interest granted by each Grantor
shall attach to, such property.

 

(b)                                 Subject
to the Intercreditor Agreement and the rights of the Credit Agreement Agent and
the Priority Lien Collateral Agent (each as defined in the Intercreditor
Agreement) thereunder, to secure the prompt and complete payment, performance
and observance of the Note Obligations and in order to induce the Agent as
aforesaid, each Grantor hereby
grants to the Agent, for the benefit of the Secured Parties, a right of setoff
against the property of such Grantor
held by the Agent or any Secured Party, consisting of Collateral now or
hereafter in the possession or custody of or in transit to the Agent or any Secured
Party, for any purpose, including safekeeping, collection or pledge, for the
account of such Grantor, or as
to which such Grantor may have
any right or power.

 

3.                                       The
Agent’s and the Secured Parties’ Rights; Limitations on the Agent’s and the Secured
Parties’ Obligations.

 

(a)                                  It
is expressly agreed by each Grantor
that, anything herein or in any other Note Document to the contrary
notwithstanding, each Grantor
shall remain liable under each of its respective Contractual Obligations,
including all Licenses, to observe and perform all the conditions and
obligations to be observed and performed by it thereunder.  Neither the Agent nor any Secured Party shall
have any obligation or liability under any Contractual Obligation by reason of
or arising out of this Agreement or any other Note Document or the granting
herein of

 

 

a Lien thereon or the receipt by the Agent or any Secured
Party of any payment relating to any Contractual Obligation pursuant
hereto.  Neither the Agent nor any Secured
Party shall be required or obligated in any manner to perform or fulfill any of
the obligations of any Grantor
under or pursuant to any Contractual Obligation, or to make any payment, or to
make any inquiry as to the nature or the sufficiency of any payment received by
it or the sufficiency of any performance by any party under any Contractual
Obligation, or to present or file any claims, or to take any action to collect
or enforce any performance or the payment of any amounts which may have been
assigned to it or to which it may be entitled at any time or times.

 

(b)                                 Subject
to the Intercreditor Agreement and the rights of the Credit Agreement Agent and
the Priority Lien Collateral Agent (each as defined in the Intercreditor
Agreement) thereunder, at any time after an Event of Default has occurred and
is continuing, without prior notice to any Grantor, the Agent may notify each Grantor’s Account Debtors and
all other Persons obligated on any of the Collateral that the Agent has a
security interest therein, and that payments shall be made directly to the Agent,
for the benefit of the Secured Parties. 
At any time after an Event of Default has occurred and is continuing, upon
the request of the Agent, each Grantor shall so notify its Account Debtors and
other Persons obligated on the Collateral. 
Once any such notice has been given to any Account Debtor or other
Person obligated on the Collateral, none of the Grantors shall give any contrary instructions to such Account
Debtor or other Person without the Agent’s prior written consent.

 

(c)                                  Subject
to the Intercreditor Agreement and the rights of the Credit Agreement Agent and
the Priority Lien Collateral Agent (each as defined in the Intercreditor
Agreement) thereunder, at any time after an Event of Default has occurred and
is continuing, the Agent may in the Agent’s own name, in the name of a nominee
of the Agent or in the name of any Grantor
communicate (by mail, telephone, facsimile or otherwise) with Account Debtors,
parties to Contractual Obligations and obligors in respect of Instruments to
verify with such Persons, to the Agent’s reasonable satisfaction, the
existence, amount, terms of, and any other matter relating to, Accounts,
Instruments, Chattel Paper and/or payment intangibles.  If an Event of Default shall have occurred
and be continuing, at Grantor’s sole expense, the Agent shall have the right to
engage a consultant for, and each Grantor shall fully cooperate with such
consultant in, the preparation and delivery to the Agent and each Secured Party
at any time and from time to time the following reports with respect to such Grantor: (i) a reconciliation of
all Accounts; (ii) an aging of all Accounts; (iii) trial balances;
and (iv) a test verification of such Accounts as the Agent may request.

 

4.                                       Representations
and Warranties.  Each Grantor, jointly and severally,
represents and warrants that:

 

(a)                                  Each
Grantor has rights in and the
power to transfer each item of the Collateral upon which it purports to grant a
Lien hereunder, free and clear of any and all Liens other than (i) subject
to the Intercreditor Agreement, the Priority Liens and (ii) other
Permitted Liens.

 

 

(b)                                 No
effective security agreement, financing statement, equivalent security or Lien
instrument or continuation statement covering all or any part of the Collateral
is on file or of record in any public office, except such as may have been
filed (i) by any Grantor in
favor of the Agent pursuant to this Agreement or the other Note Documents, (ii) by
any Grantor in favor of the ABL Facility Agent pursuant to the ABL Credit
Facility and (iii) in connection with any other Permitted Liens.

 

(c)                                  This
Agreement is effective to create a valid and continuing Lien and, upon the
filing of the appropriate financing statements listed on Schedule I
hereto, a perfected Lien in favor of the Agent, for the benefit of the Secured
Parties, on the Collateral with respect to which a Lien may be perfected by
filing pursuant to the Code.  Such Lien
is prior to all other Liens, except Permitted Liens that would be prior to
Liens in favor of the Agent for the benefit of the Secured Parties as a matter
of law, and is enforceable as such as against any and all creditors of and
purchasers from any of the Grantors
(other than purchasers and lessees of Inventory in the ordinary course of
business and non-exclusive licensees of General Intangibles in the ordinary
course of business).  Except as set forth
in Sections 4(d), 4(h) and 4(i) hereof, all action by each of
the Grantors necessary or reasonably
advisable to protect and perfect such Lien on each item of the Collateral (other
than insurance claims and money) has been duly taken; provided, that in
the case of Intellectual Property, to the extent that the perfection of such
can be perfected by (i) filing a financing statement under the Code or (ii) filing
with, and acceptance thereof by, the United States Copyright Office or the
United States Patent and Trademark Office. 
None of the Grantors
sells any Inventory to any Person on approval or on any other basis which
entitles the customer to return, or which may obligate any Grantor to repurchase, such
Inventory.  No authorization, approval or
consent is required to be obtained from any Governmental Authority or other
Person for the grant of the security interest herein, the perfection thereof or
the exercise by the Agent or any other Secured Party of its rights and remedies
hereunder.

 

(d)                                 Schedule II
hereto lists, as of the date hereof, all Stock, Instruments, Documents, Letter-of-Credit
Rights and Chattel Paper (other than
Chattel Paper (i) the value of which, in the aggregate for all such Chattel
Paper, does not exceed $500,000 or (ii) which evidences leases of
Inventory for a period of time that is less than one month in which each Grantor has an interest as of the date
hereof).  All actions by each Grantor necessary or reasonably
advisable to protect and perfect the Lien of the Agent on each item set forth
on Schedule II (including (to the extent not delivered pursuant to the
Pledge Agreement) the delivery of all originals thereof to the Designated Agent
and the legending of all Chattel Paper as required by Section 5(b) hereof)
have been duly taken.  The Lien of the Agent,
for the benefit of the Secured Parties, on the Collateral listed on Schedule II
hereto is prior to all other Liens, except Permitted Liens that would be prior
to the Liens in favor of the Agent as a matter of law, and is enforceable as
such against any and all creditors of and purchasers from each Grantor.

 

(e)                                  Set
forth on Schedule III hereto is (i) each Grantor’s name as it appears in official filings in the state of
its incorporation or other organization, all prior names of each Grantor, as they appeared from time to
time in official filings in the state of its incorporation or other
organization, (ii) the type of entity of each Grantor (including corporation, partnership,

 

 

limited partnership or limited liability company), (iii) organizational
identification number issued by each Grantor’s
state of incorporation or organization or a statement that no such number has
been issued, (iv) each Grantor’s
state of organization or incorporation, (v) the location of each Grantor’s chief executive office or
principal place of business, (vi) other offices and other premises where Inventory
or Equipment is stored or located whether or not owned or leased by such
Grantor, and (vii) the locations of each Grantor’s books and records
concerning the Collateral, in each case as of the date hereof, and such Schedule III
also lists, with respect to this clause (i), (iv), (v), (vi) and
(vii), the applicable information for the five years preceding the date hereof.
 Schedule III hereto also sets forth
the name as it appears in official filings in the state of its incorporation or
other organization of any Person from whom each Grantor, as the case may be, has acquired assets during the five (5) years
preceding the date hereof, other than assets acquired in the ordinary course of
such Grantor’s business.  Each Grantor
has only one state of incorporation or organization.

 

(f)                                    With
respect to the Accounts:

 

(i) none of
the Grantors has made any
agreement with any of its Account Debtors for any compromise or settlement for
less than the full amount thereof, any release of any of its Account Debtors
from liability therefor, or any deduction therefrom except a discount or
allowance allowed by any Grantor
in the ordinary course of its business and consistent with its past practice;

 

(ii) to each Grantor’s knowledge, there are no
facts, events or occurrences which in any way impair the validity or
enforceability thereof or could reasonably be expected to reduce the amount
payable thereunder as shown on such Grantor’s
books and records and any invoices, statements or other collateral report
delivered to the Agent and Lenders with respect thereto;

 

(iii) none of
the Grantors has received any
notice of proceedings or actions which are threatened or pending against
any of its Account Debtors which might result in any adverse change in such
Account Debtor’s financial condition;

 

(iv) none of
the Grantors has knowledge that
any of its Account Debtors is unable generally to pay its debts as they become
due;

 

(v) to each
Grantor’s knowledge, such Accounts constitute the legally valid and binding
obligation of the applicable Account Debtors;

 

(vi) all
payments thereon have been or will be delivered to the Blocked Accounts or the Agent
to the extent required by, and in accordance with, Section 6(d); and

 

(vii) to each
Grantor’s knowledge, all of its
Account Debtors have the capacity to contract.

 

 

(g)                                 With
respect to any Inventory:

 

(i) each Grantor has good, indefeasible and
merchantable title;

 

(ii) except
as specifically disclosed in the most recent Borrowing Base Certificate (as
defined in the ABL Credit Facility) or other collateral report delivered to the
ABL Facility Agent, such Inventory is of good and merchantable quality, free
from any defects;

 

(iii) such
Inventory is not subject to any licensing, patent, royalty, trademark, trade
name or copyright agreements with any third parties which would require any
consent of any third party upon sale or other disposition of that Inventory or
the payment of any monies to any third party upon such sale or other
disposition; and

 

(iv) the
completion of manufacture, sale or other disposition of such Inventory by the Agent
following an Event of Default shall not require the consent of any Person and
shall not constitute a breach or default under any contract or agreement to
which any Grantor is a party or
to which such property is subject.

 

(h)                                 None
of the Grantors has any interest
in, or title to, any Patent, Trademark or Copyright except as set forth in Schedule IV
to this Agreement.  This Agreement is
effective to create a valid and continuing Lien on and, upon filing of the Intellectual
Property Security Agreements substantially in the form attached hereto as Exhibit A,
with the United States Copyright Office or the United State Patent and
Trademark Office, as the case may be, and the filing of the financing
statements listed on Schedule I hereto, perfected Liens in favor of the Agent
on each Grantor’s registered
Patents, Trademarks and Copyrights and such perfected Liens are enforceable as
such as against any and all creditors of and purchasers from any Grantor.  Upon filing of the Copyright Security
Agreements with the United States Copyright Office and filing of the Patent
Security Agreements and the Trademark Security Agreements with the United State
Patent and Trademark Office and the filing of appropriate financing statements
listed on Schedule I hereto, all action necessary or reasonably advisable
to protect and perfect the Agent’s Lien on each Grantor’s registered Patents, Trademarks or Copyrights shall have
been duly taken.

 

(i)                                     Substantially
all motor vehicles owned by each of the Grantors
as of the date hereof are listed on Schedule V hereto, by model, model
year and, to the extent listed on the Schedule, vehicle identification number.  Also set forth on Schedule V is the
location of the title certificates for each motor vehicle listed on such Schedule V.  Each
Grantor shall after the occurrence and during the continuance of an Event of
Default, deliver to the Designated Agent motor vehicle title certificates for
all motor vehicles from time to time owned by it and shall cause those
title certificates to be filed (with the Agent’s Lien noted thereon) in the
appropriate state motor vehicle filing office.

 

 

5.                                       Covenants.  Without limiting any Grantor’s covenants and
agreements contained in the Indenture and the other Note Documents, each Grantor covenants and agrees with the Agent,
for the benefit of the Agent and Secured Parties, that from and after the date
of this Agreement and until the Termination Date:

 

(a)                                  Further
Assurances; Pledge of Instruments; Chattel Paper; Motor Vehicles.

 

(i)                                     Each
Grantor shall make, or cause to be made, all recordings, registerings, filings,
re recordings, re-registerings and re-filings required to perfect and maintain
the Liens granted hereunder or under any Note Document.  At any time and from time to time, upon the
written request of the Agent and at the sole expense of such Grantor, such Grantor shall promptly and duly
execute and deliver any and all such further instruments and documents and take
such further actions as the Agent may reasonably deem necessary or advisable to
obtain the full benefits of this Agreement and of the rights and powers herein
granted, including (A) using its commercially
reasonable efforts to secure all consents and approvals necessary or
appropriate for the assignment to or for the benefit of the Agent of any
Contractual Obligation, including any License, held by such Grantor and to enforce the security
interests granted hereunder; (B) filing any financing or continuation
statements under the Code with respect to the Liens granted hereunder or under
any other Note Document, including any amendment or modification filings made
necessary in connection with any assignment of the Liens granted hereunder or
under any Note Document; and (C) obtaining landlord’s waivers and consent
agreements, mortgagee agreements or bailee letters in favor of the Agent with
respect to Collateral.

 

(ii)                                  Upon
(A) the Agent’s reasonable written request and (B) unless the Agent
shall otherwise consent in writing (which consent may be revoked), the
occurrence and during the continuance of an Event of Default, unless such
Collateral has been delivered pursuant to the Pledge Agreement, such Grantor shall deliver to the Designated
Agent all Collateral consisting of negotiable Documents, certificated Stock,
Chattel Paper and Instruments (in each case, accompanied by stock powers,
allonges or other instruments of transfer executed in blank) promptly after
such Credit Party receives the same, upon acquiring (A) any negotiable
Document or Instrument having a value in excess of $500,000, (B) any
certificated Stock (other than certificated Stock of Subsidiaries of such
Grantor delivered to the Agent pursuant to the Pledge Agreement) or (C) any
Chattel Paper (other than Chattel Paper (I) the value of which, in the
aggregate for all such Chattel Paper, does not exceed $500,000 or (II) which
evidences leases of Inventory for a period of time that is less than one month),
such Grantor will provide prompt
written notice thereof to the Agent.

 

(iii)                               Such Grantor, as required by Section 6(e),
shall obtain authenticated Control Agreements from (A) each issuer of Uncertificated
Securities, (B)

 

 

each Securities Intermediary
issuing or holding any Financial Assets to or for such Grantor and (C) each
Commodities Intermediary holding commodities for such Grantor.

 

(iv)                              As
required by Section 6(e) or otherwise by this Agreement, such Grantor shall obtain a Control
Agreement with each bank or financial institution holding a Deposit Account for
such Grantor.

 

(v)                                 If
such Grantor is or becomes the
beneficiary of a letter of credit, such Grantor
shall promptly, and in any event within ten (10) Business Days after
becoming a beneficiary, notify the Agent thereof and unless otherwise consented
by the Agent, use commercially reasonable efforts to enter into a tri-party
agreement with the Designated Agent and the issuer and/or confirmation bank
with respect to Letter-of-Credit Rights assigning such Letter-of-Credit Rights
to the Agent and directing all payments thereunder to a Deposit Account subject
to a Control Agreement, all in form and substance reasonably satisfactory to
the Agent.

 

(vi)                              Upon
(A) the Agent’s reasonable written request or (B) unless the Agent
shall otherwise consent in writing (which consent may be revoked), the
occurrence and during the continuance, of an Event of Default, such Grantor shall take all steps necessary
to grant the Agent control of all Electronic Chattel Paper in accordance with
the Code and all “transferable records” as defined in each of the Uniform
Electronic Transactions Act and the Electronic Signatures in Global and
National Commerce Act.

 

(vii)                           Such Grantor hereby irrevocably
authorizes the Agent at any time and from time to time to file in any filing
office in any Uniform Commercial Code Jurisdiction any initial financing
statements and amendments thereto that (a) indicate the Collateral (i) as
all assets of such Grantor or
words of similar effect, regardless of whether any particular asset comprised
in the Collateral falls within the scope of Article 9 of the Code or such
jurisdiction, or (ii) as being of an equal or lesser scope or with greater
detail, and (b) contain any other information required by part 5 of Article 9
of the Code for the sufficiency or filing office acceptance of any financing
statement or amendment, including (i) whether such Grantor is an organization, the type of organization and any
organization identification number issued to such Grantor, and (ii) in the case of a financing statement filed
as a fixture filing or indicating Collateral as As-Extracted Collateral or timber
to be cut, a sufficient description of real property to which the Collateral
relates.  Such Grantor agrees to furnish any such information to the Agent
promptly upon request therefor.  Such Grantor also hereby ratifies its
authorization for the Agent to have filed in any Uniform Commercial Code Jurisdiction
any initial financing statements or amendments thereto if filed prior to the
date hereof.

 

(viii)                        Such Grantor shall promptly, and in
any event within ten (10) Business Days after the same is acquired by it,
notify the Agent of Commercial Tort Claims in excess of $1,000,000,
individually or in the aggregate, acquired by it
and unless otherwise consented by the Agent, such Grantor shall enter into a supplement to

 

 

this Agreement, granting
to the Agent a Lien in such Commercial Tort Claim. Any supplement to Schedule V
delivered pursuant to this Section 5(a)(ix) shall, after the receipt
thereof by the Agent, become part of Schedule V for all purposes hereunder
other than in respect of representations and warranties made prior to the date
of such receipt.

 

(ix)                                Upon
delivery by any Credit Party of a landlord’s waiver and consent agreement,
mortgagee agreement or bailee letter with respect to any Collateral in favor of
the Designated Agent pursuant to Section 2.6(a) or 2.6(b) of the
ABL Facility Agreement, such Credit Party shall deliver a landlord’s waiver and
consent agreement, mortgagee agreement or bailee letter, as applicable, with
respect to the same Collateral in favor of the Agent.

 

(x)                                   The
Borrowers and NEFF shall comply with Section 2.10 of the ABL Facility
Agreement.

 

(b)                                 Covenants
Regarding Patent, Trademark and Copyright Collateral.

 

(i)                                     Such Grantor shall notify the Agent
immediately if it knows or has reason to know that any application or registration
relating to any Patent, Trademark or Copyright that is material to the conduct
of any Grantor’s business or operations (now or hereafter existing) may become
abandoned or dedicated, or of any adverse determination or material adverse development
(including the institution of, or any such determination or development in, any
proceeding in the United States Patent and Trademark Office, the United States
Copyright Office or any court) regarding such Grantor’s ownership of any Patent, Trademark or Copyright, its
right to register the same, or to keep and maintain the same.

 

(ii)                                  In
no event shall such Grantor,
either directly or through any agent, employee, licensee or designee, file an
application for the registration of any Patent, Trademark or Copyright with the
United States Patent and Trademark Office, the United States Copyright Office
or any similar office or agency without giving the Agent prior written notice
thereof, and, upon request of the Agent, such Grantor shall execute and deliver any and all Patent Security
Agreements, Copyright Security Agreements or Trademark Security Agreements as
the Agent may request to evidence the Agent’s Lien on such Patent, Trademark or
Copyright, and the General Intangibles of Grantor relating thereto or represented thereby.

 

(iii)                               Such Grantor shall take all actions
necessary or reasonably requested by the Agent to maintain and pursue (and not
abandon) each application, to obtain the relevant registration and to maintain
the registration of each of the Patents, Trademarks and Copyrights (now or
hereafter existing that is material to the conduct of any Grantor’s business or
operations), including the filing of applications for renewal, affidavits of
use, affidavits of noncontestability and opposition and interference and

 

 

cancellation
proceedings, unless such Grantor shall determine that such Patent, Trademark or
Copyright is not material to the conduct of its business or operations.

 

(iv)                              In
the event that any of the Patent, Trademark or Copyright Collateral that is material to the conduct of any Grantor’s business
or operations is infringed upon, or misappropriated or diluted by a third
party, each Grantor shall promptly
notify the Agent and, if applicable, comply with Section 5(a)(ix) of this
Agreement.  Such Grantor shall, unless it shall reasonably determine that such
Patent, Trademark or Copyright Collateral is not material to the conduct of its
business or operations, promptly sue for infringement, misappropriation or
dilution and to recover any and all damages for such infringement,
misappropriation or dilution, and shall take such other actions as the Agent
shall deem appropriate under the circumstances to protect such Patent,
Trademark or Copyright Collateral.

 

(c)                                  Compliance
with Terms of Accounts, etc.  Such Grantor will perform and comply in all
material respects with all obligations in respect of the Collateral and all
other agreements to which it is a party or by which it is bound relating to the
Collateral.

 

(d)                                 Limitation
on Liens on Collateral.  Such Grantor will not create, permit or
suffer to exist, and will defend the Collateral against, and take such other
action as is necessary to remove, any Lien on any of the Collateral except
Permitted Liens, and will defend the right, title and interest of the Agent and
the Secured Parties in and to any of such Grantor’s rights under the Collateral against the claims and
demands of all Persons whomsoever.

 

(e)                                  Further
Identification of Collateral.  Such Grantor will, if so reasonably requested
by the Agent, furnish to the Agent, as often as the Agent requests, statements
and schedules further identifying and describing the Collateral and such other
reports in connection with the Collateral as the Agent may reasonably request,
all in such detail as the Agent may specify. 
Such Grantor shall
promptly notify the Agent in writing upon acquiring any interest hereafter in
property that is of a type where a security interest or Lien must be or may be
registered, recorded or filed under, or notice thereof given under, any federal
statute or regulation.

 

(f)                                    Notices.  Such Grantor
will advise the Agent promptly, in reasonable detail, (i) of any Lien
(other than Permitted Liens) or claim made or asserted against a material
portion of the Collateral, and (ii) of the occurrence of any other event
which could reasonably be expected to have a Material Adverse Effect on the
aggregate value of the Collateral or on the Liens created hereunder or under
any other Note Document.

 

(g)                                 Good
Standing Certificates.  If and
whenever requested by the Agent, such Grantor
shall provide to the Agent a certificate of good standing from its state of
incorporation or organization.

 

 

(h)                                 Organizational/Collateral
Location Changes; No Reincorporation. 
Such Grantor will give
the Agent at least fifteen (15) days prior written notice of any change to the
information set forth on Schedule III, as applicable to the extent needed
to make Schedule III up to date and accurate.  Without limiting the prohibitions on mergers
involving any Grantor as contained
in the Indenture, none of the Grantors
shall reincorporate or reorganize itself under the laws of any jurisdiction
other than the jurisdiction in which it is incorporated or organized as of the
date hereof without the prior written consent of the Agent.

 

(i)                                     Terminations;
Amendments Not Authorized.  Such Grantor acknowledges that it is not
authorized to file any financing statement or amendment or termination
statement with respect to any financing statement filed in favor of the Agent
without the prior written consent of the Agent and agrees that it will not do
so without the prior written consent of the Agent, subject to such Grantor’s rights under Section 9-509(d)(2) of
the Code.

 

(j)                                     Authorized
Terminations.  Following the
Termination Date or any Asset Sale expressly permitted by the Indenture, the Agent
will promptly deliver to such Grantor
for filing or authorize such Grantor
to prepare and file termination statements and releases in accordance with Section 9-513(c) of
the Code.

 

(k)                                  Use
of Collateral.  Such Grantor will do
nothing to impair the rights of the Agent in any of the Collateral.  Such Grantor
will not use or permit any Collateral to be used unlawfully or in violation of
any provision of applicable law, or any insurance policy covering any of the
Collateral.  Without limiting the
foregoing, such Grantor will not
permit the production of Inventory in violation of any provision of the Fair
Labor Standards Act and such Grantor
will not adjust, settle or compromise the amount or payment of any Account, or
release wholly or partly any Account Debtor thereof or allow any credit or
discount thereon (other than credits and discounts in the ordinary course of
business).

 

(l)                                     Federal
and State Claims.  Such Grantor shall notify the Agent
promptly of any of the Collateral which constitutes a claim against the United
States government or any instrumentality or agent thereof or any state thereof,
the assignment of which claim is restricted by federal law or state law as the
case may be.  Upon the request of the Agent,
such Grantor shall take such
steps as may be reasonably necessary to comply with any applicable federal
assignment of claims laws or other comparable laws.

 

6.                                       Bank
Accounts; Collection of Accounts and Payments.

 

(a)                                  Each
Grantor shall enter into a
Control Agreement, in a form specified by the Designated Agent, with each
financial institution with which such Grantor
maintains from time to time any Deposit Account in accordance with Section 6(d).  Each Control Agreement shall provide, among other
things, that (i) all items of payment deposited in each Deposit Account
subject thereto shall be held by the applicable financial institution as Agent
or bailee-in-possession for the Agent, on behalf of itself and the Secured
Parties, (ii) the financial institution executing such agreement has no
rights of offset or recoupment of any other claim against any 

 

 

Deposit
Account subject thereto, as the case may be, other than for payment of its
services and other charges directly related to the administration of each such
Deposit Account and for returned checks or other items of payment, and (iii) in
accordance with this Section 6, the financial institution will transfer
all amounts held or deposited from time to time in any such Deposit Account as the
Agent may so direct.  Each Grantor hereby grants to the Agent,
for the benefit of the Secured Parties, a continuing Lien upon, and security
interest in, all such Deposit Accounts and all funds at any time paid,
deposited, credited or held in such Deposit Accounts (whether for collection,
provisionally or otherwise) or otherwise in the possession of such financial
institutions, and each such financial institution shall act as the Agent’s
agent in connection therewith.  Except as
specifically permitted under Section 6(d), none of the Grantors shall establish any Deposit
Account with any financial institution unless prior thereto the Agent and the
applicable Grantor shall have
entered into a Control Agreement with such financial institution.

 

(b)                                 From
and after receipt by any Blocked Account Bank of written notice from the Designated
Agent to such Blocked Account Bank that an Event of Default has occurred and is
continuing, all amounts held or deposited from time to time in the Blocked
Accounts held by such Blocked Account Bank shall be transferred on a daily
basis to the Designated Agent or to any of the Concentration Accounts, as the Designated
Agent may direct.  Subject to the
foregoing, each Grantor hereby agrees that all payments received by the Agent
or any Secured Parties whether by cash, check, wire transfer or any other
instrument, made to such Deposit Accounts or otherwise received by the Agent or
any Secured Parties and whether on the Accounts or as proceeds of other
Collateral or otherwise will be, subject to the Intercreditor Agreement, the
sole and exclusive property of the Secured Parties.  Each Grantor, and any of its Affiliates,
employees, agents and other Persons acting for or in concert with any Grantor
shall, acting as trustee for the Agent and Secured Parties, receive, as the
sole and exclusive property of the Secured Parties, any moneys, checks, notes,
drafts or other payments relating to and/or constituting proceeds of Accounts
or other Collateral which come into the possession or under the control of such
Grantor or any Affiliates, employees, agent, or other Persons acting for or in
concert with any Grantor, and immediately upon receipt thereof, such Grantor or
such Persons shall, to the extent required by Section 6(d), deposit the
same or cause the same to be deposited in kind, in a Deposit Account or other
account subject to a Control Agreement.

 

(c)                                  If
at any time a Blocked Account Bank is obligated to transfer to the Agent or any
Concentration Account, all amounts held or deposited in the Blocked Accounts
held by such Blocked Account Bank, no Grantor
shall and no Grantor shall
permit any Subsidiary to, accumulate or maintain cash in any disbursement or
payroll account, as of any date, in an amount in excess of checks outstanding
against such account as of such date and amounts necessary to meet minimum
balance requirements.

 

(d)                                 (x)  The Borrowers and NEFF shall, and shall cause
each other Credit Party to (i) enter into Control Agreements with respect
to each deposit account, securities account and commodities account maintained
by either Borrower, NEFF or any such Credit Party as of or after the date of
this Agreement, (ii) deposit in a deposit account subject to a

 

 

Control
Agreement all cash received on each Business Day and (iii) not establish
or maintain any deposit account, securities account or commodities account
unless such deposit account, securities account or commodities account is
subject to a Control Agreement as provided in Section 6(e), in each case,
other than (A) any payroll account so long as such payroll account is a
zero balance account, (B) any disbursement account so long as (I) such
disbursement account is a zero balance account or (II) the cash and Cash
Equivalents on deposit in such disbursement account shall not exceed $250,000, (C) any
disbursement cash and Cash Equivalents on deposit in or credited to the balance
of withholding tax and other fiduciary accounts and (D) cash and Cash
Equivalents in an amount not to exceed $100,000 in the aggregate.  Each such Control Agreement shall be in form
and substance satisfactory to the Designated Agent.  Each Borrower and each Grantor shall enter
into and maintain with one or more banks and pursuant to agreements in form and
substance reasonably satisfactory to the Designated Agent, lock-box
arrangements.

 

(y)                                 The
Borrowers and NEFF shall, and shall cause each Credit Party, to (i) provide
each Account Debtor or other Person obligated to make a payment to any of them
under any Account or General Intangible with an envelope addressed to the
applicable Credit Party for such Account Debtor or other Person to make such
payment directly to a lockbox account or other deposit account subject to a
Control Agreement and (ii) deposit in a deposit account or securities
account (as applicable) subject to a Control Agreement promptly (but in any
event within three (3) Business Days) upon receipt of all Proceeds of such
Accounts and General Intangibles received by either Borrower or any such Credit
Party from any other Person.

 

(z)                                   Notwithstanding
anything to the contrary in the foregoing clauses (x) or (y), it is understood
and agreed that:

 

(i)                                     the
Agent shall not, unless it is the Designated Agent, deliver a notice of control
or other similar notice to any depository institution, securities intermediary
or commodities intermediary, as applicable, pursuant to any Control Agreement,
and if the Agent is the Designated Agent, it shall not deliver such notice
unless an Event of Default shall be continuing; and

 

(ii)                                  if
an Event of Default shall be continuing, a notice of control or similar notice
has been given by the Designated Agent in accordance with the applicable
Control Agreement and the immediately preceding clause (i), amounts deposited
in or credited to deposit accounts, securities accounts or commodities accounts
subject to Control Agreements or credited to the lock-box account will be
transferred on a daily basis to the Concentration Account and shall be
available to the applicable Credit Party.

 

(e)                                  The
Credit Parties shall not:

 

 

(i)                                     establish
any new bank accounts without prior written notice to the Agent and unless the
Designated Agent and the depository institution at which the account is to be
opened enter into a Control Agreement; provided, that the Agent (if it
shall be the Designated Agent) shall not cause (or deliver notice to the
applicable depository institution to cause) amounts credited to such deposit
accounts to be transferred on a daily basis to the Concentration Account or
otherwise unless an Event of Default shall have occurred and be continuing;

 

(ii)                                  establish
any new securities accounts without prior written notice to the Agent and
unless the Designated Agent and the securities intermediary at which the
account is to be opened enter into a Control Agreement; provided, that
the Agent (if it shall be the Designated Agent) shall not cause (or deliver
notice to the applicable securities intermediary to cause) amounts credited to
such securities accounts to be transferred on a daily basis to the
Concentration Account or otherwise unless an Event of Default shall have
occurred and be continuing; and

 

(iii)                               establish
any new commodities accounts without prior written notice to the Agent and
unless the Designated Agent and the commodities intermediary at which the
account is to be opened enter into a Control Agreement; provided, that
the Agent (if it shall be the Designated Agent) shall not cause (or deliver
notice to the applicable commodities intermediary to cause) amounts credited to
such commodities accounts to be transferred on a daily basis to the
Concentration Account or otherwise unless an Event of Default shall have
occurred and be continuing.

 

7.                                       The
Agent’s Appointment as Attorney-In-Fact.

 

On the date of this Agreement, each Grantor shall execute and deliver to the Agent a power of attorney
(the “Power of Attorney”) substantially in the form attached hereto as Exhibit B.  The power of attorney granted pursuant to the
Power of Attorney is a power coupled with an interest and shall be irrevocable
until the Termination Date.  The powers
conferred on the Agent, for the benefit of the Agent and Secured Parties, under
the Power of Attorney are solely to protect the Agent’s interests (for the
benefit of the Agent and Secured Parties) in the Collateral and shall not
impose any duty upon the Agent or any Secured Parties to exercise any such
powers.  The Agent agrees that (a) except
for the powers granted in clause (h) of the Power of Attorney, it
shall not exercise any power or authority granted under the Power of Attorney
unless an Event of Default has occurred and is continuing, (b) the Agent
shall account for any moneys received by the Agent in respect of any
foreclosure on or disposition of Collateral pursuant to the Power of Attorney
provided that none of the Agent nor any Secured Parties shall have any duty as
to any Collateral, and the Agent and Secured Parties shall be accountable only
for amounts they actually receive as a result of the exercise of such powers,
and (c) any action taken pursuant to the Power of Attorney shall be subject
to the Intercreditor Agreement and the rights of the Credit Agreement Agent and
the Priority Lien Collateral Agent (each as defined in the Intercreditor
Agreement) thereunder.  NONE OF THE AGENT,
SECURED PARTIES OR THEIR RESPECTIVE AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES,
AGENTS OR

 

 

REPRESENTATIVES
SHALL BE RESPONSIBLE TO ANY GRANTOR
FOR ANY ACT OR FAILURE TO ACT UNDER ANY POWER OF ATTORNEY OR OTHERWISE, EXCEPT
IN RESPECT OF DAMAGES ATTRIBUTABLE SOLELY TO THEIR OWN GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT AS FINALLY DETERMINED BY A COURT OF COMPETENT JURISDICTION,
NOR FOR ANY PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL DAMAGES.

 

8.                                       Remedies;
Rights Upon Default.

 

(a)                                  Subject
to the Intercreditor Agreement and the rights of the Credit Agreement Agent and
the Priority Lien Collateral Agent (each as defined in the Intercreditor
Agreement) thereunder, in addition to all other rights and remedies granted to
it under this Agreement, the Notes, the Indenture, the other Note Documents and
under any other instrument or agreement securing, evidencing or relating to any
of the Note Obligations, if any Event of Default shall have occurred and be
continuing, the Agent may exercise all rights and remedies of a secured party
under the Code.  Without limiting the
generality of the foregoing, each Grantor
expressly agrees that in any such event the Agent, without demand of
performance or other demand, advertisement or notice of any kind (except the
notice specified below of time and place of public or private sale) to or upon
any Grantor or any other Person
(all and each of which demands, advertisements and notices are hereby expressly
waived to the maximum extent permitted by the Code and other applicable law),
may forthwith (personally or through its agents or attorneys) enter upon the
premises where any Collateral is located, without any obligation to pay rent,
through self-help, without judicial process, without first obtaining a final
judgment or giving any Grantor
or any other Person notice and opportunity for a hearing on the Agent’s claim
or action and may take possession of, collect, receive, assemble, process,
appropriate, remove and realize upon the Collateral, or any part thereof, and
may forthwith sell, lease, license, assign, give an option or options to
purchase, or otherwise dispose of and deliver said Collateral (or contract to
do so), or any part thereof, in one or more parcels at a public or private sale
or sales, at any exchange at such prices as it may deem acceptable, for cash or
on credit or for future delivery without assumption of any credit risk.  To facilitate the foregoing, the Agent shall
have the right to take possession of each Grantor’s original books and records, to obtain access to each Grantor’s data processing equipment,
computer hardware and Software and to use all of the foregoing and the
information contained therein in any manner which the Agent deems
appropriate.  The Agent or any Secured
Parties shall have the right upon any such public sale or sales and, to the
extent permitted by law, upon any such private sale or sales, to purchase for
the benefit of the Agent and Secured Parties, the whole or any part of said
Collateral so sold, free of any right or equity of redemption, which equity of
redemption each Grantor hereby
releases.  Such sales may be adjourned
and continued from time to time with or without notice.  The Agent shall have the right to conduct
such sales on each Grantor’s
premises or elsewhere and shall have the right to use each Grantor’s premises without charge for
such time or times as the Agent deems necessary or advisable.

 

If any Event of Default shall have occurred and be continuing, each Grantor further agrees, at the Agent’s
request, to assemble the Collateral and make it available to the

 

 

Agent at a place
or places designated by the Agent which are reasonably convenient to the Agent
and such Grantor, whether at
such Grantor’s premises or
elsewhere.  Without limiting the
foregoing, the Agent shall also have the right to require that each Grantor store and keep any Collateral
pending further action by the Agent, and while Collateral is so stored or kept,
provide such guards and maintenance services as shall be necessary to protect
the same and to preserve and maintain Collateral in good condition.  Until the Agent is able to effect a sale,
lease, license or other disposition of Collateral, the Agent shall have the
right to hold or use Collateral, or any part thereof, to the extent that it
deems appropriate for the purpose of preserving Collateral or its value or for
any other purpose deemed appropriate by the Agent.  The Agent shall not have any obligation to
any Grantor to maintain or
preserve the rights of any Grantor
as against third parties with respect to Collateral while Collateral is in the
possession of the Agent.  The Agent may,
if it so elects, seek the appointment of a receiver or keeper to take
possession of Collateral and to enforce any of the Agent’s remedies (for the
benefit of the Agent and Secured Parties), with respect to such appointment without
prior notice or hearing as to such appointment. The Agent shall apply the net
proceeds of any sale, lease, license, other disposition of, or any collection,
recovery, receipt, or realization on, the Collateral to the Note Obligations as
provided in the Indenture, and only after so paying over such net proceeds, and
after the payment by the Agent of any other amount required by any provision of
law, need the Agent account for the surplus, if any, to any Grantor.  To the maximum extent permitted by applicable
law, each Grantor waives all
claims, damages, and demands against the Agent or any Secured Parties arising
out of the repossession, retention or sale of the Collateral except such as
arise solely out of the gross negligence or willful misconduct of the Agent or
such Secured Party as finally determined by a court of competent
jurisdiction.  Each Grantor agrees that ten (10) days
prior notice by the Agent of the time and place of any public sale or of the
time after which a private sale may take place is reasonable notification of
such matters.  Notwithstanding any such
notice of sale, the Agent shall not be obligated to make any sale of
Collateral.  In connection with any sale,
lease, license or other disposition of Collateral, the Agent may disclaim any
warranties that might arise in connection therewith and the Agent shall have no
obligation to provide any warranties at such time.  Each Grantor
shall remain liable for any deficiency if the proceeds of any sale or
disposition of the Collateral are insufficient to pay all Note Obligations,
including any attorneys’ fees or other expenses incurred by the Agent or any Secured
Parties to collect such deficiency.

 

(b)                                 Except
as otherwise specifically provided herein, each Grantor hereby waives presentment, demand, protest or any notice
(to the maximum extent permitted by applicable law) of any kind in connection
with this Agreement or any Collateral.

 

(c)                                  To
the extent that applicable law imposes duties on the Agent to exercise remedies
in a commercially reasonable manner, each Grantor acknowledges and agrees that it is not commercially
unreasonable for the Agent (i) to fail to incur expenses reasonably deemed
significant by the Agent to prepare Collateral for disposition or otherwise to
complete raw material or work in process into finished goods or other finished
products for disposition, (ii) to fail to obtain third party consents for
access to Collateral to be disposed of, or to obtain or, if not required by
other law, to fail to obtain governmental or third party consents for the
collection or disposition of Collateral to be collected or disposed of, (iii) to
fail to exercise collection remedies

 

 

against Account Debtors or other Persons obligated on
Collateral or to remove Liens on or any adverse claims against Collateral, (iv) to
exercise collection remedies against Account Debtors and other Persons
obligated on Collateral directly or through the use of collection agencies and
other collection specialists, (v) to advertise dispositions of Collateral
through publications or media of general circulation, whether or not the
Collateral is of a specialized nature, (vi) to contact other Persons,
whether or not in the same business as any Grantor, for expressions of interest in acquiring all or any
portion of such Collateral, (vii) to hire one or more professional
auctioneers to assist in the disposition of Collateral, whether or not the
Collateral is of a specialized nature, (viii) to dispose of Collateral by
utilizing internet sites that provide for the auction of assets of the types
included in Collateral or that have the reasonable capacity of doing so, or
that match buyers and sellers of assets, (ix) to dispose of assets in
wholesale rather than retail markets, (x) to disclaim disposition
warranties, such as title, possession or quiet enjoyment, (xi) to purchase
insurance or credit enhancements to insure the Agent against risks of loss,
collection or disposition of Collateral or to provide to the Agent a guaranteed
return from the collection or disposition of Collateral, or (xii) to the
extent deemed appropriate by the Agent, to obtain the services of other
brokers, investment bankers, consultants and other professionals to assist the
Agent in the collection or disposition of any of the Collateral.  Each Grantor
acknowledges that the purpose of this Section 8(c) is to provide
non-exhaustive indications of what actions or omissions by the Agent would not
be commercially unreasonable in the Agent’s exercise of remedies against the
Collateral and that other actions or omissions by the Agent shall not be deemed
commercially unreasonable solely on account of not being indicated in this Section 8(c).  Without limitation upon the foregoing,
nothing contained in this Section 8(c) shall be construed to grant
any rights to any Grantor or to
impose any duties on the Agent that would not have been granted or imposed by this
Agreement or by applicable law in the absence of this Section 8(c).

 

(d)                                 Neither
the Agent nor any Secured Parties shall be required to make any demand upon, or
pursue or exhaust any of their rights or remedies against, any Grantor, any other obligor, guarantor,
pledgor or any other Person with respect to the payment of the Note Obligations
or to pursue or exhaust any of their rights or remedies with respect to any
Collateral therefor or any direct or indirect guarantee thereof.  Neither the Agent nor any Secured Parties
shall be required to marshal the Collateral or any guarantee of the Note Obligations
or to resort to the Collateral or any such guarantee in any particular order,
and all of its and their rights hereunder or under any other Note Document
shall be cumulative.  To the extent it
may lawfully do so, each Grantor
absolutely and irrevocably waives and relinquishes the benefit and advantage
of, and covenants not to assert against the Agent or any Secured Parties, any
valuation, stay, appraisement, extension, redemption or similar laws and any
and all rights or defenses it may have as a surety now or hereafter existing
which, but for this provision, might be applicable to the sale of any
Collateral made under the judgment, order or decree of any court, or privately
under the power of sale conferred by this Agreement, or otherwise.

 

9.                                       Grant
of License to Use Property.  Subject
to the Intercreditor Agreement and the rights of the Credit Agreement Agent and
the Priority Lien Collateral Agent (each as defined in the Intercreditor
Agreement) thereunder, for the purpose of enabling the Agent to

 

 

exercise rights
and remedies under Section 8 hereof (including, without limiting the terms
of Section 8 hereof, in order to take possession of, collect, receive,
assemble, process, appropriate, remove, realize upon, sell, lease, license,
assign, give an option or options to purchase or otherwise dispose of Collateral)
at such time as the Agent shall be lawfully entitled to exercise such rights
and remedies, each Grantor
hereby grants to the Agent, for the benefit of the Agent and Secured Parties,
an irrevocable, nonexclusive license (exercisable without payment of royalty or
other compensation to such Grantor)
to use, license or sublicense any Intellectual Property now owned or hereafter
acquired by such Grantor, and
wherever the same may be located, and including in such license access to all
media in which any of the licensed items may be recorded or stored and to all
Software and programs used for the compilation or printout thereof and an
irrevocable license (exercisable without payment of rent or other compensation
to such Grantor) to use and
occupy all real estate owned or leased by such Grantor.

 

10.                                 Limitation
on the Agent’s and the Secured Parties’ Duty in Respect of Collateral.  The Agent and each Secured Party shall use
reasonable care with respect to the Collateral in its possession or under its
control.  Neither the Agent nor any Secured
Parties shall have any other duty as to any Collateral in its possession or
control or in the possession or control of any agent or nominee of the Agent or
such Secured Party, or any income thereon or as to the preservation of rights
against prior parties or any other rights pertaining thereto.  The Agent shall be deemed to have exercised
reasonable care in the custody and preservation the Collateral in its
possession if the Collateral is accorded treatment substantially equal to that
which it accords its own property.  The Agent
shall not be liable or responsible for any loss or damage to any of the
Collateral, or for any diminution in the value thereof, by reason of the act or
omission of any warehousemen, carrier, forwarding agency, consignee or other
agent or bailee selected by the Agent in good faith.

 

11.                                 Reinstatement.  This Agreement shall remain in full force and
effect and continue to be effective should any petition be filed by or against
any Grantor for liquidation or
reorganization, should any Grantor
become insolvent or make an assignment for the benefit of any creditor or
creditors or should a receiver or trustee be appointed for all or any
significant part of any Grantor’s
assets, and shall continue to be effective or be reinstated, as the case may
be, if at any time payment and performance of the Note Obligations, or any part
thereof, is, pursuant to applicable law, rescinded or reduced in amount, or
must otherwise be restored or returned by any obligee of the Note Obligations,
whether as a “voidable preference,” “fraudulent conveyance,” or otherwise, all
as though such payment or performance had not been made.  In the event that any payment, or any part
thereof, is rescinded, reduced, restored or returned, the Note Obligations
shall be reinstated and deemed reduced only by such amount paid and not so
rescinded, reduced, restored or returned.

 

12.                                 Expenses
and Attorneys Fees.  Without limiting
any Grantor’s obligations under
the Notes, the Indenture or the other Note Documents, each Grantor agrees to promptly pay all reasonable
fees, costs and expenses (including reasonable attorneys’ fees and expenses
incurred in connection with (a) protecting, storing, warehousing,
appraising, insuring, handling, maintaining and shipping the Collateral, (b) creating,
perfecting, maintaining and enforcing the

 

 

Agent’s Liens and (c) collecting,
enforcing, retaking, holding, preparing for disposition, processing and
disposing of Collateral.

 

13.                                 Notices.  Except as otherwise provided herein, whenever
it is provided herein that any notice, demand, request, consent, approval,
declaration or other communication shall or may be given to or served upon any
of the parties by any other party, or whenever any of the parties desires to
give and serve upon any other party any communication with respect to this
Agreement, each such notice, demand, request, consent, approval, declaration or
other communication shall be in writing and shall be given in the manner, and
deemed received, as provided for in the Indenture.

 

14.                                 Limitation
by Law.  All rights, remedies and
powers provided in this Agreement may be exercised only to the extent that the
exercise thereof does not violate any applicable provision of law, and all the
provisions of this Agreement are intended to be subject to all applicable
mandatory provisions of law that may be controlling, and to be limited to the
extent necessary so that they shall not render this Agreement invalid,
unenforceable, in whole or in part, or not entitled to be recorded, registered
or filed under the provisions of any applicable law.

 

15.                                 Termination
of this Agreement.  Subject to Section 11
hereof, this Agreement shall terminate upon the Termination Date.

 

16.                                 Successors
and Assigns.  This Agreement shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns, except that no Grantor may assign any of its rights or obligations hereunder
without the written consent of the Agent. 
No sales of participations, other sales, assignments, transfers or other
dispositions of any agreement governing or instrument evidencing the Note Obligations
or any portion thereof or interest therein shall in any manner impair the Lien
granted to the Agent, for the benefit of the Agent and the Secured Parties,
hereunder.

 

17.                                 Counterparts.  This Agreement and any amendments, waivers,
consents or supplements may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed an original, but all of which
counterparts taken together shall constitute but one in the same
instrument.  This Agreement shall become
effective upon the execution of a counterpart hereof by each of the parties
hereto.  This Agreement may be
authenticated by manual signature, facsimile or, if approved in writing by the
Agent, electronic means, all of which shall be equally valid.

 

18.                                 Applicable
Law.  THIS AGREEMENT SHALL BE
GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES.

 

 

19.                                 Additional Grantors  If, pursuant to Section 4.18 of
the Indenture, the Borrowers shall be required to cause any Subsidiary that is
not a Grantor to become a Grantor hereunder, such Subsidiary shall execute and
deliver to the Agent a Joinder Agreement substantially in the form of Exhibit C to this Agreement and
shall thereafter for all purposes be a party hereto and have the same rights,
benefits and obligations as a Grantor party hereto on the date of this
Agreement.

 

20.                                 Headings.  Section headings are included herein for
convenience of reference only and shall not constitute a part of this Agreement
for any other purposes or be given substantive effect.

 

21.                                 Benefit
of the Secured Parties.  All Liens
granted or contemplated hereby shall be for the benefit of the Agent on behalf
of the Secured Parties, and all proceeds or payments realized from Collateral
in accordance herewith shall be applied to the Note Obligations in accordance
with the terms of the Indenture.

 

22.                                 Additional
Rights of Agent.

 

(a)                                  The
Agent shall be entitled to all of the rights, protections, immunities and
indemnities of the Trustee set forth in the Indenture.

 

(b)                                 Neither
the Agent, nor any of its respective officers, directors, employees, agents or
counsel shall be liable for any action lawfully taken or omitted to be taken by
it or them hereunder or in connection herewith, except for actions taken or
omitted to be taken as a result of its or their own gross negligence or wilful
misconduct as finally determined by a court of competent jurisdiction.

 

23.                                 INTERCREDITOR
AGREEMENT GOVERNS. NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, THE
SECURITY INTEREST GRANTED TO WELLS FARGO BANK, NATIONAL ASSOCIATION, AS AGENT,
FOR THE BENEFIT OF THE SECURED PARTIES, PURSUANT TO THIS AGREEMENT AND THE
EXERCISE OF ANY RIGHT OR REMEDY BY THE AGENT AND THE OTHER SECURED PARTIES
HEREUNDER ARE SUBJECT TO THE PROVISIONS OF THE INTERCREDITOR AGREEMENT. IN THE
EVENT OF ANY CONFLICT OR INCONSISTENCY BETWEEN THE PROVISIONS OF THE
INTERCREDITOR AGREEMENT AND THIS AGREEMENT, THE PROVISIONS OF THE INTERCREDITOR
AGREEMENT SHALL CONTROL.

 

[Remainder of Page Intentionally
Left Blank]

 

 

 IN WITNESS WHEREOF, each of the
parties hereto has caused this Agreement to be executed and delivered by its
duly authorized officer as of the date first set forth above. 

 

	
   

  	
  NEFF RENTAL LLC,

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NEFF FINANCE CORP.,

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NEFF RENTAL, INC.,

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, NATIONAL

  ASSOCIATION, as Agent,

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

EXHIBIT A

 

FORM OF INTELLECTUAL
PROPERTY SECURITY AGREEMENT

 

THIS INTELLECTUAL PROPERTY SECURITY AGREEMENT (together with all
amendments, if any, from time to time, this “Intellectual Property Security
Agreement”), dated as            ,
200 , is made by EACH OF THE GRANTORS LISTED ON THE SIGNATURE PAGES HERETO
AND EACH ADDITIONAL PARTY WHICH BECOMES A GRANTOR HERETO PURSUANT TO SECTION 8
HEREOF (collectively, “Grantors” and each, a “Grantor”), in favor
of Wells Fargo Bank, National Association, in its capacity as Agent for the
Secured Parties (each as defined in the Security Agreement referred to below).

 

W I T N E S S E T
H:

 

WHEREAS, pursuant to the Indenture dated as of the date hereof (as
amended, restated, supplemented or otherwise modified from time to time, the “Indenture”),
among the Borrowers, NEFF, each of the other Persons named therein as a
Guarantor (as defined in the Indenture) and Wells Fargo Bank, National
Association, as Trustee, the Borrowers are co-issuing $245,000,000 aggregate
principal amount of their 111⁄4% Second Priority Senior Secured Notes Due 2012
and may issue, from time to time, additional notes in accordance with the
provisions of the Indenture (collectively, the “Notes”);

 

WHEREAS, the Grantors have entered into a Security Agreement (the “Security
Agreement”) of even date herewith, with the Agent for the benefit of the Secured
Parties;

 

WHEREAS, each Grantor will derive direct and indirect economic benefits
from the issuance of the Notes and other financial accommodations provided to
the Borrower and the other Grantors pursuant to the Indenture;

 

WHEREAS, in order to induce the Agent to enter into the Indenture and
the other Note Documents, each Grantor has agreed to grant a continuing Lien on
the Collateral to secure the Note Obligations;

 

NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained and to induce the Trustee to enter into the Indenture and the
other Note Documents, it is agreed as follows:

 

1.                                       DEFINED
TERMS.  All capitalized terms used
(including in the Recitals hereto) but not otherwise defined herein have the
meanings given to them in the Security Agreement.

 

2.                                       GRANT
OF SECURITY INTEREST IN INTELLECTUAL PROPERTY COLLATERAL.  (a)  To secure the prompt and
complete payment, performance and observance of all the Note Obligations, each
Grantor hereby grants, assigns, conveys, mortgages, pledges, hypothecates and
transfers to the Agent, for the benefit of the Secured Parties, a continuing second
priority security interest in and Lien upon all of its right, title and
interest in, to and under the following, whether presently existing or
hereafter created or acquired by or arising in favor of

 

 

such Grantor and
whether owned or consigned by or to, or licensed from or to, such Grantor
(collectively, the “Intellectual Property Collateral”):

 

(i)                           [all of
its Patents and Patent Licenses to which it is a party including those referred
to on Schedule I hereto;]

 

(ii)                        [all of
its Trademarks and Trademark Licenses to which it is a party including those
referred to on Schedule I hereto;]

 

(iii)                     [all of its
Copyrights and Copyright Licenses to which it is a party including those
referred to on Schedule I hereto;]

 

(iv)                    all reissues,
continuations or extensions of the foregoing;

 

(v)                       all
goodwill of the business connected with the use of, and symbolized by, each
Patent, each Patent License, each Trademark, each Trademark License, each
Copyright and each Copyright License; and

 

(vi)                    all products
and proceeds of the foregoing, including, without limitation, any claim by such
Grantor against third parties for past, present or future (A) infringement
or dilution of any Patent or Patent licensed under any Patent License, (B) injury
to the goodwill associated with any Patent or any Patent licensed under any
Patent License, (C) infringement or dilution of any Trademark or Trademark
licensed under any Trademark License, (D) injury to the goodwill
associated with any Trademark or any Trademark licensed under any Trademark
License, (E) infringement or dilution of any Copyright or Copyright
licensed under any Copyright License, and (F) injury to the goodwill associated
with any Copyright or any Copyright licensed under any Copyright License.

 

(b)                                 In
addition, to secure the prompt and complete payment, performance and observance
of the Note Obligations and in order to induce the Agent and Trustee as
aforesaid, each Grantor hereby grants to the Agent, for the benefit of the Secured
Parties, a right of setoff, against the property of such Grantor held by the
Agent or any Lender, consisting of property described above in Section 2(a) now
or hereafter in the possession or custody of or in transit to the Agent or any
Lender, for any purpose, including safekeeping, collection or pledge, for the
account of such Grantor, or as to which such Grantor may have any right or
power.

 

3.                                       REPRESENTATIONS
AND WARRANTIES.  Each Grantor,
jointly and severally, represents and warrants, as of the date of this
Agreement, that (a) each Patent, (b) each Trademark that is
registered or pending registration with the US Patent and Trademark Office, (c) each
Copyright that is registered or pending registration with the US Copyright
Office, (d) material unregistered trademarks, service marks and trade
names, (e) material unregistered copyrights, (f) computer software
(other than commercially available off-the-shelf software purchased or licensed
for less than a total cost of $500,000 in the aggregate); and (g) each
License, is set forth on the schedules hereto.  
This Intellectual Property Security Agreement is

 

2

 

effective to create a valid and continuing Lien on
and, upon the filing hereof with the United States Patent and Trademark Office
and the United States Copyright Office, as applicable and the filing of
appropriate financing statements listed on Schedule I to the Security
Agreement, perfected security interests in favor of the Agent in all of
Grantors’ Patents, Trademarks and Copyrights and such perfected security
interests are enforceable as such as against any and all creditors of, and
purchasers from, Grantors.  Upon filing
of this Intellectual Property Security Agreement with the United States Patent
and Trademark Office and the United States Copyright Office, as applicable and
the filing of appropriate financing statements listed on Schedule I
to the Security Agreement, all action necessary or otherwise requested by the
Agent to protect and perfect the Agent’s Lien on Grantor’s Patents, Trademarks
and Copyrights shall have been duly taken.

 

In addition to
any representations and warranties contained herein, each Grantor hereby
acknowledges and affirms the representations and warranties made to the Agent
with respect to the Intellectual Property Collateral made in the Security
Agreement, the terms and provisions of which are incorporated by reference
herein as if fully set forth herein.

 

4.                                       COVENANTS;
SECURITY AGREEMENT.  The security
interests granted pursuant to this Intellectual Property Security Agreement are
granted in conjunction with the security interests granted to the Agent
pursuant to the Security Agreement.  In
addition to the covenants contained herein, each Grantor hereby acknowledges
and affirms the covenants of such Grantor with respect to the Intellectual
Property Collateral in the Security Agreement, the terms and provisions of
which are incorporated herein as if fully set forth herein.  In addition, each Grantor hereby acknowledges
and affirms that the rights and remedies of the Agent with respect to the
security interest in the Intellectual Property Collateral made and granted
hereby are more fully set forth in the Security Agreement, the terms and
provisions of which are incorporated by reference herein as if fully set forth
herein.

 

5.                                       REINSTATEMENT.  This Intellectual Property Security Agreement
shall remain in full force and effect and continue to be effective should any
petition be filed by or against any Grantor or other Credit Party for
liquidation or reorganization, should any Grantor or other Credit Party become
insolvent or make an assignment for the benefit of any creditor or creditors or
should a receiver or trustee be appointed for all or any significant part of
any Grantor’s or other Credit Party’s assets, and shall continue to be
effective or be reinstated, as the case may be, if at any time payment and
performance of the Note Obligations, or any part thereof, is, pursuant to
applicable law, rescinded or reduced in amount, or must otherwise be restored
or returned by any obligee of the Note Obligations, whether as a “voidable
preference,” “fraudulent conveyance,” or otherwise, all as though such payment
or performance had not been made.  In the
event that any payment, or any part thereof, is rescinded, reduced, restored or
returned, the Note Obligations shall be reinstated and deemed reduced only by
such amount paid and not so rescinded, reduced, restored or returned.

 

6.                                       NOTICES.
Whenever it is provided herein that any notice, demand, request, consent,
approval, declaration or other communication shall or may be given to or

 

3

 

served upon any of the parties by any other party, or
whenever any of the parties desires to give or serve upon another any such
communication with respect to this Intellectual Property Security Agreement,
each such notice, demand, request, consent, approval, declaration or other
communication shall be in writing and shall be addressed to the party to be
notified at the address set forth in Section 12.02 of the Indenture.

 

7.                                       ADDITIONAL
GRANTORS.  The initial Grantors
hereunder are the Credit Parties as are signatories hereto on the date hereof.  From time to time subsequent to the date
hereof, additional Credit Parties may become parties hereto, as additional
Grantors (each, an “Additional Grantor”), by executing a counterpart of
this Intellectual Property Security Agreement substantially in the form of Exhibit A
attached hereto.  Upon delivery of any
such counterpart to the Agent, notice of which is hereby waived by the
Grantors, each Additional Grantor shall be a Grantor and shall be as fully a
party hereto as if such Additional Grantor were an original signatory
hereto.  Each Grantor expressly agrees
that its obligations arising hereunder shall not be affected or diminished by
the addition or release of any other Grantor hereunder nor by any election of the
Agent not to cause any Credit Party or any other Person to become an Additional
Grantor hereunder.  This Intellectual
Property Security Agreement shall be fully effective as to any Grantor that is
or becomes a party hereto regardless of whether any other Person becomes or
fails to become or ceases to be a Grantor hereunder.

 

8.                                       TERMINATION
OF THIS SECURITY AGREEMENT.  Subject
to Section 5 hereof, this Intellectual Property Security Agreement shall
terminate upon the Termination Date.

 

9.                                       NO
STRICT CONSTRUCTION. The parties hereto have participated jointly in the
negotiation and drafting of this Intellectual Property Security Agreement.  In the event an ambiguity or question of
intent or interpretation arises, this Intellectual Property Security Agreement
shall be construed as if drafted jointly by the parties hereto and no
presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Intellectual Property
Security Agreement.

 

10.                                 ADVICE
OF COUNSEL. Each of the parties represents to each other party hereto that
it has discussed this Intellectual Property Security Agreement with its
counsel.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

4

 

IN WITNESS WHEREOF, each Grantor has caused this Intellectual Property
Security Agreement to be executed and delivered by its duly authorized officer
as of the date first set forth above.

 

	
   

  	
  [NAME OF GRANTOR],

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  [NAME OF GRANTOR],

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Acknowledged
  and Agreed

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO
  BANK, NATIONAL

  ASSOCIATION, as Agent,

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

ACKNOWLEDGMENT OF
GRANTORS

 

	
  STATE OF

  	
  )

  	
   

  
	
   

  	
  )

  	
  ss.

  
	
  COUNTY OF

  	
  )

  	
   

  

 

On this     day of         ,
200  , before me personally appeared                       ,
proved to me on the basis of satisfactory evidence to be the person who
executed the foregoing instrument on behalf of [                    ],
who being by me duly sworn did depose and say that he is an authorized officer
of said corporation, that the said instrument was signed on behalf of said
corporation as authorized by its Board of Directors and that he acknowledged
said instrument to be the free act and deed of said corporation.

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Notary
  Public

  

 

 

{seal}

 

 

[SCHEDULE I

to

INTELLECTUAL PROPERTY SECURITY AGREEMENT]

 

I.                                         PATENT
REGISTRATIONS

 

	
  Grantor

  	
   

  	
  Patent

  	
   

  	
  Reg. No.

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

II.                                     PATENT
APPLICATIONS

 

	
  Grantor

  	
   

  	
  Patent

  	
   

  	
  Application
  No.

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

III.                                 PATENT
LICENSES

 

	
  Grantor

  	
   

  	
  Name of
  Agreement

  	
   

  	
  Date of
  Agreement

  	
   

  	
  Parties

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

I.                                         TRADEMARK
REGISTRATIONS

 

	
  Grantor

  	
   

  	
  Mark

  	
   

  	
  Reg. No.

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

II.                                     TRADEMARK
APPLICATIONS

 

	
  Grantor

  	
   

  	
  Mark

  	
   

  	
  Application
  No.

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

III.                                 TRADEMARK
LICENSES

 

	
  Grantor

  	
   

  	
  Name of
  Agreement

  	
   

  	
  Date of
  Agreement

  	
   

  	
  Parties

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

I.                                         COPYRIGHT
REGISTRATIONS

 

	
  Grantor

  	
   

  	
  Copyright

  	
   

  	
  Reg. No.

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

II.                                     COPYRIGHT
APPLICATIONS

 

	
  Grantor

  	
   

  	
  Copyright

  	
   

  	
  Application
  No.

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

III.                                 COPYRIGHT
LICENSES

 

	
  Grantor

  	
   

  	
  Name of
  Agreement

  	
   

  	
  Date of
  Agreement

  	
   

  	
  Parties

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

EXHIBIT A

 

COUNTERPART TO INTELLECTUAL

PROPERTY SECURITY AGREEMENT

 

This counterpart, dated          
is delivered pursuant to Section 8 of that certain Intellectual Property
Security Agreement dated as of            ,
200   (as from time to time amended, modified or supplemented, the “IP
Security Agreement”; the terms defined therein and not otherwise defined
herein being used as therein defined), among [                  ],
as Grantor[s] and Wells Fargo Bank, National Association, as Agent.  The undersigned hereby agrees (i) that
this counterpart may be attached to the IP Security Agreement, and (ii) that
the undersigned will comply with and be subject to, including representations
and warranties, all the terms and conditions of the IP Security Agreement as if
it were an original signatory thereto. 

 

	
   

  	
  [NAME OF ADDITIONAL GRANTOR],

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

EXHIBIT B

POWER OF ATTORNEY

 

This Power of Attorney is executed and delivered by [INSERT NAME OF
APPLICABLE GRANTORS] (collectively, the “Grantors” and each a “Grantor”)
to Wells Fargo Bank, National Association (hereinafter referred to as “Attorney”),
as Agent for the benefit of the Secured Parties, under an Indenture and a
Security Agreement, both dated as of July 8, 2005, and other related
documents (the “Note Documents”). 
No person to whom this Power of Attorney is presented, as authority for
Attorney to take any action or actions contemplated hereby, shall be required
to inquire into or seek confirmation from any Grantor as to the authority of Attorney to take any action
described below, or as to the existence of or fulfillment of any condition to
this Power of Attorney, which is intended to grant to Attorney unconditionally
the authority to take and perform the actions contemplated herein, and each Grantor irrevocably waives any right
to commence any suit or action, in law or equity, against any person or entity
which acts in reliance upon or acknowledges the authority granted under this
Power of Attorney.  The power of attorney
granted hereby is coupled with an interest, may not be revoked or canceled by
any Grantor without Attorney’s
written consent and shall terminate on the Termination Date.

 

Each Grantor hereby
irrevocably constitutes and appoints Attorney (and all officers, employees or
agents designated by Attorney), with full power of substitution, as such Grantor’s true and lawful
attorney-in-fact with full irrevocable power and authority in the place and
stead of such Grantor and in the name of such Grantor or in its own name, from time to time in Attorney’s
discretion, to take any and all appropriate action and to execute and deliver
any and all documents and instruments which may be necessary or reasonably advisable
to accomplish the purposes of the Note Documents and, without limiting the
generality of the foregoing, each Grantor
hereby grants to Attorney the power and right, on behalf of such Grantor, without notice to or assent
by any Grantor, and at any time
following the occurrence of and during the continuance of an Event of Default
and subject to the terms of the Intercreditor Agreement, to do the
following:  (a) change the mailing
address of such Grantor, open a
post office box on behalf of such Grantor,
open mail for such Grantor, and
ask, demand, collect, give acquittances and receipts for, take possession of,
endorse any invoices, freight or express bills, bills of lading, storage or
warehouse receipts, drafts against debtors, assignments, verifications, and
notices in connection with any property of such Grantor; (b) effect any repairs to any asset of such Grantor, or continue to obtain any
insurance required to be maintained by such Grantor pursuant to the Note
Documents and pay all or any part of the premiums therefor and costs thereof,
and make, settle and adjust all claims under such policies of insurance, and
make all determinations and decisions with respect to such policies; (c) pay
or discharge any taxes, liens, security interests, or other encumbrances levied
or placed on or threatened against such Grantor
or its property; (d) defend any suit, action or proceeding brought against
such Grantor if such Grantor does not defend such suit,
action or proceeding or if Attorney believes that such Grantor is not pursuing such defense in a manner that will
maximize the recovery to Attorney, and settle, compromise or adjust any suit,
action, or proceeding described above and, in connection therewith, give such
discharges or releases as Attorney may deem appropriate; (e) file or
prosecute any claim, litigation, suit or proceeding in any court of competent
jurisdiction or before any arbitrator, or take any other action otherwise
deemed appropriate by Attorney for the purpose of collecting any and all such
moneys due to such Grantor
whenever payable and to enforce any other right in

 

 

respect of
such Grantor’s property; (f) cause
the certified public accountants then engaged by such Grantor to prepare and deliver to Attorney at any time and from
time to time, promptly upon Attorney’s request, the following reports:  (1) a reconciliation of all accounts, (2) an
aging of all accounts, (3) trial balances, (4) test verifications of
such accounts as Attorney may request, and (5) the results of each
physical verification of inventory; (g) communicate in its own name with
any party to any contract with regard to the assignment of the right, title and
interest of such Grantor in and
under the contract and other matters relating thereto; (h) to file such
financing statements with respect to the Security Agreement, with or without
such Grantor’s signature, or to
file a photocopy of the Security Agreement in substitution for a financing
statement, as the Agent may deem appropriate, and to execute in such Grantor’s name such financing
statements and amendments thereto and continuation statements which may require
such Grantor’s signature; (i) execute,
in connection with any sale provided for in any Note Document, any endorsements,
assignments or other instruments of conveyance or transfer with respect to any
collateral subject to the Note Documents and to otherwise direct such sale or
resale; (j) exercise the rights of such Grantor with respect to the obligation of all account debtors to
make payment or otherwise render performance to such Grantor; (k) exercise the rights of such Grantor to, and take
any and all actions that Attorney deems appropriate to realize the benefit of,
any intellectual property; and (l) assert any claims such Grantor may have, from time to time,
against any other party to any contract to which such Grantor is a party and to otherwise exercise any right or remedy
of such Grantor thereunder, all
as though Attorney were the absolute owner of the property of such Grantor for all purposes, and to do,
at Attorney’s option and such Grantor’s
expense, at any time or from time to time, all acts and other things that
Attorney reasonably deems necessary to perfect, preserve, or realize upon such Grantor’s property or assets and
Attorney’s liens thereon, all as fully and effectively as such Grantor might do.  Each Grantor
hereby ratifies, to the extent permitted by law, all that said Attorney shall
lawfully do or cause to be done by virtue hereof.

 

IN THE EVENT OF ANY CONFLICT OR INCONSISTENCY BETWEEN THE PROVISIONS OF
THE INTERCREDITOR AGREEMENT AND THIS POWER OF ATTORNEY, THE PROVISIONS OF THE
INTERCREDITOR AGREEMENT SHALL CONTROL.

 

2

 

IN WITNESS WHEREOF, this Power of Attorney is
executed by each Grantor
pursuant to the authority of its board of directors this     day
of     , 20  .

 

	
   

  	
  [NAME OF GRANTOR],

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  [NAME OF GRANTOR],

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

3

 

NOTARY
PUBLIC CERTIFICATE

 

On this       
day of    , 20  ,               
who is personally known to me appeared before me in his/her capacity as the [INSERT TITLE] of              ,
a               
[INSERT TYPE OF ENTITY] (“Grantor”) and executed on behalf of Grantor
the Power of Attorney in favor of Wells Fargo Bank, National Association, to
which this Certificate is attached.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Notary Public

  

 

4

 

NOTARY
PUBLIC CERTIFICATE

 

On this       
day of    , 20  ,               
who is personally known to me appeared before me in his/her capacity as the [INSERT TITLE] of              ,
a               
[INSERT TYPE OF ENTITY] (“Grantor”) and executed on behalf of Grantor
the Power of Attorney in favor of Wells Fargo Bank, National Association, to
which this Certificate is attached.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Notary Public

  

 

5

 

EXHIBIT A

 

FORM OF
JOINDER AGREEMENT

 

JOINDER AGREEMENT (this “Agreement”)
dated as of           , 20  
is by and among              ,
a           
[corporation][limited liability company] (the “New Subsidiary”) and
Wells Fargo Bank, National Association, as collateral agent (in such capacity,
the “Agent”) for the holders of Note Obligations (as defined below).

 

Pursuant to the Indenture dated as of July 8,
2005 (as the same may be amended, restated, supplemented or otherwise modified
from time to time, the “Indenture”), among Neff Rental LLC, a Delaware
limited liability company (“Neff LLC”), Neff Finance Corp., a Delaware
corporation (“Neff Finance” and, together with Neff LLC, the “Borrowers”
and each, a “Borrower”), Neff Rental, Inc., a Florida corporation (“NEFF”),
each of the other Persons named therein as a Guarantor (as defined in the
Indenture), and Wells Fargo Bank, National Association, as Trustee, and the Security
Agreement dated as of July 8, 2005 (as the same may be amended, restated,
supplemented or otherwise modified from time to time, the “Security
Agreement”; capitalized terms used herein and not otherwise defined herein
shall have the meanings ascribed to such terms in the Security Agreement) the
Credit Parties are required by Section 4.18 of the Indenture and Section 19
of the Security Agreement to cause the new Subsidiary (“New Subsidiary”)
to become a Credit Party thereunder. 
Accordingly, the New Subsidiary hereby agrees as follows with the Agent,
for the benefit of the Secured Parties, that:

 

1.                                       The
New Subsidiary hereby acknowledges, agrees and confirms that, by its execution
of this Agreement, the New Subsidiary will be deemed to be a party to the
Indenture for all purposes of the Indenture and the other Note Documents, and
shall have all of the obligations of a Credit Party thereunder as if it had
executed the Indenture.  The New
Subsidiary hereby ratifies, as of the date hereof, and agrees to be bound by,
all of the terms, provisions and conditions applicable to the Credit Parties in
the Indenture and the other Note Documents.

 

2.                                       The
New Subsidiary hereby acknowledges, agrees and confirms that, by its execution
of this Agreement, the New Subsidiary will be deemed to be a party to the
Security Agreement as a Grantor for all purposes of the Security Agreement and
the other Note Documents, and shall have all the obligations of a Grantor
thereunder as if it had executed the Security Agreement.  The New Subsidiary hereby ratifies, as of the
date hereof, and agrees to be bound by, all of the terms, provisions and
conditions contained in the Security Agreement. 
Without limiting generality of the foregoing terms of this paragraph 2,
the New Subsidiary hereby grants, assigns, conveys, mortgages, pledges,
hypothecates and transfers to Agent, for the benefit of the Secured Parties, a
Lien upon all of its right, title and interest in, to and under all of the
Collateral of such New Subsidiary, whether owned or consigned by or to, or
leased from or to, such New Subsidiary,
and regardless of where located, to secure the prompt payment and performance
in full when due, whether by lapse of time, acceleration, mandatory prepayment
or otherwise, of the Note Obligations.

 

3.                                       The
New Subsidiary hereby acknowledges, agrees and confirms that, by its execution
of this Agreement, the New Subsidiary will be deemed to be a party to the
Pledge Agreement and a Pledgor (as defined in the Pledge Agreement) for all
purposes of the Pledge Agreement and the other Note Documents, and shall have
all the obligations of a Pledgor thereunder as if it had executed the Pledge
Agreement.  The New Subsidiary hereby
ratifies, as

 

 

of the date hereof, and agrees
to be bound by, all of the terms, provisions and conditions contained in the
Pledge Agreement.  Without limiting
generality of the foregoing terms of this paragraph 3, the New Subsidiary
hereby grants and pledges to Agent, for the benefit of the Secured Parties, a
second priority security interest in the Pledged Collateral (as defined in the
Pledge Agreement) of the New Subsidiary identified on Schedule 1 hereto
and all other Pledged Collateral of the New Subsidiary to secure the prompt
payment and performance in full when due, whether by lapse of time,
acceleration, mandatory prepayment or otherwise, of the Secured Obligations (as
defined in the Pledge Agreement).

 

4.                                       The
Subsidiary hereby represents and warrants to the Agent that:

 

(a)                                  The New Subsidiary’s
official name, type of entity and state of organization or incorporation are as
set forth on the signature pages hereto.

 

(b)                                 The New Subsidiary’s
chief executive office and principal place of business and other offices are
located at the locations set forth on Schedule 2 hereto.

 

(c)                                  Other than as set
forth on Schedule 3 hereto, the New Subsidiary has not changed its
official name or changed its state of organization or incorporation, been party
to a merger, consolidation or other change in structure or used any tradename
in the prior five years.

 

(d)                                 Schedule 4 hereto
includes all warehouses, consignees and processors with whom Inventory is
stored or located and other premises where Collateral is stored or located.

 

(e)                                  Schedule 5
hereto includes all the locations of the New Subsidiary’s books and records
concerning the Collateral.

 

(f)                                    Schedule 6
hereto includes a list of Persons from whom the New Subsidiary has acquired
assets during the past five (5) years, other than assets acquired in the
ordinary course of the New Subsidiary’s business.

 

(g)                                 Schedule 7
hereto includes all Patents, Trademarks and Copyrights owned by or licensed to
the New Subsidiary in its own name, or to which the New Subsidiary is a party,
as of the date hereof, that is used in or necessary for the conduct of its
business as currently conducted that is material to the condition (financial or
otherwise).

 

(h)                                 Schedule 8
hereto includes all Commercial Tort Claims before any Governmental Authority by
or in favor of the New Subsidiary.

 

(i)                                     Schedule 9
hereto lists all real property that is owned, leased or subleased by the New
Subsidiary as of the date hereof.  Schedule 9
hereto further lists any real property with respect to which the New Subsidiary
or any of its Subsidiaries is a lessor, sublessor or assignor as of the date
hereof.

 

2

 

(h)                                 Schedule 10
hereto lists all locations of tangible personal property that is owned or
leased by the New Subsidiary as of the date.

 

5.                                       The
New Subsidiary hereby acknowledges, agrees and confirms that, by its execution
of this Agreement, the New Subsidiary will be deemed to be a party to the
Intercreditor Agreement and a Credit Party (as defined in the Intercreditor
Agreement) for all purposes of the Intercreditor Agreement and the other Note
Documents, and shall have all the obligations of a Credit Party thereunder as
if it had executed the Intercreditor Agreement. 
The New Subsidiary hereby ratifies, as of the date hereof, and agrees to
be bound by, all of the terms, provisions and conditions contained in the
Intercreditor Agreement.

 

6.                                       This Agreement
may be executed in any number of counterparts and by different parties in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement.  Signature pages may be
detached from multiple separate counterparts and attached to a single
counterpart so that all signature pages are attached to the same
document.  Delivery of an executed
signature page of this Agreement by facsimile transmission shall be as
effective as delivery of a manually executed counterpart hereof.

 

7.                                       THIS AGREEMENT
AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO SHALL BE GOVERNED BY, AND
SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE
STATE OF NEW YORK, WITHOUT
REGARD TO CONFLICTS OF LAW PRINCIPLES.

 

3

 

IN WITNESS WHEREOF, each of the undersigned
has caused this Joinder Agreement to be duly executed and delivered as of the
date first above written.

 

	
   

  	
  [NEW SUBSIDIARY],

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  by:

  	
   

  	
   

  
	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   Title:

  

 

Acknowledged and accepted as of the date

first written above:

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Agent,

 

	
  by:

  	
   

  	
   

  
	
   

  	
   Name:

  
	
   

  	
   Title:

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