Document:

Exhibit 10.25

 

Description of Compensation of
Non-Employee Trustees

 

Each
Trustee who is not also an officer and full-time employee of Corporate Office
Properties Trust (the “Company”) receives the fees set forth in the table below
until changed by the Board of Trustees:

 

	
  Annual trustee fee

  	
   

  	
  $

  	
  35,000

  	
   

  
	
  Annual committee chairman fees

  	
   

  	
   

  	
   

  
	
  Audit committee

  	
   

  	
  10,000

  	
   

  
	
  Compensation committee

  	
   

  	
  7,000

  	
   

  
	
  Investment committee

  	
   

  	
  8,500

  	
   

  
	
  Nominating/corporate governance

  	
   

  	
  5,000

  	
   

  
	
  Board meeting fees

  	
   

  	
  1,000

  	
   

  
	
  Committee meeting fees

  	
   

  	
  1,000

  	
   

  

 

The
members of the Board of Trustees are also eligible for reimbursement for travel
and lodging expenses incurred in connection with attendance at Board and
committee meetings.  In addition, until
changed by the Board of Trustees, all non-employee Trustees will receive an
annual grant of 5,000 options to purchase the Company’s common shares of
beneficial interest at an exercise price equal to the fair market value on the
date of grant; this grant takes place on the day of the Company’s annual
meeting of shareholders.  These options
vest 100% one year from the date of grant.Exhibit 10.26

 

Description of annual cash incentive awards
to executives

 

The Compensation
Committee of the Board of Trustees (the “Compensation Committee”) of Corporate
Office Properties Trust (the “Company”) considers the award of annual cash
incentive awards designed to correlate executive compensation to the overall
performance of the Company and to the performance of each executive’s specific
business unit.

 

The Compensation
Committee approves annual target performance levels for the Company.  The Committee uses REIT peer groups’ bonus
information to establish annual cash incentive award targets based on different
thresholds of performance in meeting the Company’s performance levels.

 

The Committee uses the
median bonus level for executive positions in the REIT peer groups as a
guideline for determining a Company executive’s target bonus to be awarded if
the Company and the executive’s business unit meet target performance levels.
Each executive may generally earn up to an established maximum percentage of
his or her annual salary if higher-than-target performance levels are achieved,
and will generally receive less than the target bonus if the target performance
levels are not met, although bonuses could not be paid at all if a defined
minimum performance level is not met.

 

The measures used in
defining overall Company performance objectives for determining bonuses are
diluted funds from operations per share and diluted adjusted funds from
operations per share (both of which are measurements used by equity REITs to
evaluate financial performance).  The measures used in defining business
unit performance are tailored to apply to the nature of each business unit’s
operations.  The measures used in computing the bonus of the Chief
Executive Officer include only overall Company performance measures.  The
measures used in computing the bonuses of the other executives include overall
Company performance measures as well as measures applicable to each executive’s
business unit.

 

The Compensation
Committee has the discretion to award higher or lower annual cash incentive
awards to executives relative to amounts computed in accordance with the
methodology set forth above.Exhibit 4.5.1.1

 

EXECUTION
VERSION

 

Dated 21 March 2007

 

AMENDMENT
AND RESTATEMENT AGREEMENT

in respect of a

Senior Bridge
Facilities Agreement

(in relation to Facilities A1, A2 and C) originally dated 21 December 2005

among

 

HERTZ
INTERNATIONAL, LTD.

as Parent

 

THE
BORROWERS

 

THE
GUARANTORS

 

HERTZ
EUROPE LIMITED

as Coordinator

 

BNP
PARIBAS

 

and

 

THE
ROYAL BANK OF SCOTLAND PLC

as Mandated Lead Arrangers

 

CALYON

as Co-Arranger

 

BNP
PARIBAS,

THE ROYAL BANK OF SCOTLAND PLC

 

and

 

CALYON

as Joint Bookrunners

 

BNP
PARIBAS

as Facility Agent

 

BNP
PARIBAS

as Security Agent

 

BNP
PARIBAS

as Global Coordinator

 

THE
FINANCIAL INSTITUTIONS

NAMED HEREIN

as Banks

 

5 Old Broad Street

London EC2N 1DW 

 

 

TABLE
OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  DEFINITIONS AND INTERPRETATION

  	
  2

  
	
   

  	
   

  	
   

  
	
  2.

  	
  AMENDMENT AND RESTATEMENT

  	
  3

  
	
   

  	
   

  	
   

  
	
  3.

  	
  REPRESENTATIONS AND WARRANTIES

  	
  3

  
	
   

  	
   

  	
   

  
	
  4.

  	
  EFFECTIVE DATE

  	
  3

  
	
   

  	
   

  	
   

  
	
  5.

  	
  CONTINUITY AND FURTHER ASSURANCE

  	
  4

  
	
   

  	
   

  	
   

  
	
  6.

  	
  AMENDMENT COSTS AND EXPENSES

  	
  4

  
	
   

  	
   

  	
   

  
	
  7.

  	
  COUNTERPARTS

  	
  4

  
	
   

  	
   

  	
   

  
	
  8.

  	
  GOVERNING LAW, NOTICES AND JURISDICTION

  	
  4

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 1 

  	
  THE ORIGINAL PARTIES

  	
  5

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 2 

  	
  CONDITIONS PRECEDENT

  	
  7

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 3 

  	
  AMENDED AND RESTATED SENIOR BRIDGE
  FACILITIES AGREEMENT

  	
  10

  
	
   

  	
   

  	
   

  
	
  SIGNATURES

  	
   

  	
  S-1

  
					

 

i

 

THIS
AGREEMENT is dated  
   March 2007 and made between:

 

(1)                                 HERTZ INTERNATIONAL, LTD., a corporation
incorporated under the laws of the State of Delaware, having (as of the date
hereof) its registered office at 225 Brae Boulevard, Park Ridge, New Jersey,
07657 (the “Parent”);

 

(2)                                 THE COMPANIES listed in Part 2 of
Schedule 1 (The Original Parties) as borrowers under
the Original Senior Bridge Facilities Agreement (as defined below) (the “Borrowers”);

 

(3)                                 THE COMPANIES listed in Part 3 of
Schedule 1 (The Original Parties) as guarantors
under the Original Senior Bridge Facilities Agreement (as defined below) (the “Guarantors”);

 

(4)                                 HERTZ EUROPE LIMITED as Coordinator;

 

(5)                                 BNP PARIBAS  AND
THE ROYAL BANK OF SCOTLAND PLC as
mandated lead arrangers of the Facilities as defined in the Original Senior
Bridge Facilities Agreement (each, a “Mandated  Lead Arranger” and together, the “Mandated
Lead Arrangers”);

 

(6)                                 CALYON as co-arranger (the “Co-Arranger”);

 

(7)                                 BNP PARIBAS, THE ROYAL BANK OF SCOTLAND PLC AND CALYON as
joint bookrunners for the Facilities as defined in the Original Senior Bridge
Facilities Agreement (together, the “Joint Bookrunners”);

 

(8)                                 BNP PARIBAS as facility agent for the
Banks (the “Facility Agent”);

 

(9)                                 BNP PARIBAS as security agent and
security trustee on behalf of the Finance Parties (the “Security
Agent”);

 

(10)                          BNP PARIBAS as documentation agent and
global coordinator for the Banks (the “Global Coordinator”);
and

 

(11)                          THE FINANCIAL INSTITUTIONS listed in Part 1
of Schedule 1 (The Original Parties)
as Banks (the “Banks”).

 

WHEREAS:

 

(A)                               This
Agreement is supplemental to a senior bridge facilities agreement dated 21 December 2005  (the “Original Senior Bridge
Facilities Agreement”) made between, among others, the Parent, the
original borrowers and original guarantors named therein, the mandated lead
arrangers named therein, the co-arranger named therein, the joint bookrunners
named therein, BNP Paribas as facility agent, security agent, documentation
agent and global co-ordinator and the financial institutions named therein as
banks.

 

(B)                               On
24 January 2006, Hertz Europe Limited acceded to the Original Senior
Bridge Facilities Agreement as an Additional Guarantor pursuant to Clause 39.1
(Request for Additional Guarantor)
thereof.

 

(C)                               The
parties wish to amend the Original Senior Bridge Facilities Agreement on the
terms and subject to the conditions set out in this Agreement.

 

12

 

(D)                               In
accordance with Clause 44 (Amendments) of
the Original Senior Bridge Facilities Agreement, the parties to this Agreement
have agreed that the Original Senior Bridge Facilities Agreement shall be
amended and restated to the extent set out in this Agreement.

 

IT IS
AGREED as follows:

 

1.                                      DEFINITIONS AND
INTERPRETATION

 

1.1                                 Definitions

 

In this Agreement:

 

“Additional Company”
means each of Car Rental Systems Do
Brasil Locação De Veículos Ltda, Hertz New Zealand Limited, The Hertz
Corporation, Hertz New Zealand Holdings Limited, Equipole S.A. and Hertz
Finance Centre Limited.

 

“Amended and Restated
Intercreditor Deed” means the Intercreditor Deed dated 21 December 2005
between, among others, the Parent, the Borrowers, the Guarantors, certain
subsidiaries of the Parent, the Facility Agent and the Security Agent as
amended and restated pursuant to the Supplemental Deed.

 

“Amended and Restated
Senior Bridge Facilities Agreement” means the Original Senior Bridge
Facilities Agreement as amended and restated in the form set out in Schedule 3
(Amended and Restated Senior Bridge Facilities
Agreement).

 

“Effective Date”
shall have the meaning given to in Clause 4 (Effective
Date) below.

 

“Relevant Agreements”
means this Agreement, the Amended and Restated Senior Bridge Facilities
Agreement, the Supplemental Deed and the Amended and Restated Intercreditor
Deed.

 

“Supplemental Deed”
means the supplemental deed to the Intercreditor Deed to be entered into on or
about the date of this Agreement between, among others, the Parent, the
Borrowers, the Guarantors, certain subsidiaries of the Parent, the Facility
Agent and the Security Agent.

 

1.2                                 Incorporation of
Defined Terms

 

(a)                                  Unless a contrary indication
appears, a term defined in the Original Senior Bridge Facilities Agreement has
the same meaning in this Agreement.

 

(b)                                 The principles of interpretation set
out in the Original Senior Bridge Facilities Agreement shall have effect as if
set out in this Agreement.

 

1.3                                 Third Party Rights

 

A person who is not party to this Agreement, other
than the Obligors and the Finance Parties, has no right under the Contracts
(Rights of Third Parties) Act 1999 to enforce any term of this Agreement.

 

2

 

2.                                      AMENDMENT AND
RESTATEMENT

 

With effect from the Effective Date, the Original
Senior Bridge Facilities Agreement shall be amended and restated in the form
set out in Schedule 3 (Amended and Restated
Senior Bridge Facilities Agreement) to this Agreement.

 

3.                                      REPRESENTATIONS AND WARRANTIES

 

Each Obligor represents and warrants to each of the Finance Parties in
respect to itself that:

 

(a)                                  all acts, conditions and things
required to be done, fulfilled and performed (save for any such acts,
conditions or things referred to in the qualifications to the legal opinions
referred to in Clause 4 (Effective Date)
below and subject to applicable bankruptcy or insolvency laws or other similar
laws affecting creditors’ rights or remedies generally and general principles
of equity) in order (x) to enable it lawfully to enter into, exercise its
rights under and perform and comply with the obligations (taken as a whole)
expressed to be assumed by such Obligor in each of the Relevant Agreements, (y) to
ensure that the obligations expressed to be assumed by such Obligor in each of
the Relevant Agreements (taken as a whole) are legal, valid, binding and
enforceable and (z) to make each of the Relevant Agreements admissible in
evidence in its jurisdiction of organisation, in each case, have been done,
fulfilled and performed, save in each case for any such act, condition or thing
which the failure to do, fulfil or perform would not reasonably be expected to
have a Material Adverse Effect;

 

(b)                                 after giving effect to this
Agreement and the Supplemental Deed, no Event of Default has occurred and is
continuing (or would occur giving effect to this Agreement as of the Effective
Date);

 

(c)                                  all necessary consents and approvals
to the transactions contemplated by each of the Relevant Agreements have been
or, when required, will be obtained and there is no legal requirement of any
governmental authority (including any requirement to make any declaration,
filing or registration or to obtain any license or order) which is necessary to
be met by it in connection with its execution, delivery or performance of each
of the Relevant Agreements; and

 

(d)                                 after giving effect to this
Agreement and the Supplemental Deed, the Repeated Representations (as such term
is defined in the Amended and Restated Senior Bridge Facilities Agreement)
other than those set out in Clause 19.6 (Financial
Statements) of the Amended and Restated Senior Bridge Facilities
Agreement are hereby repeated on the Effective Date (as defined below in Clause
4 (Effective Date)) by reference to the
facts and circumstances existing on the Effective Date.

 

4.                                      EFFECTIVE DATE

 

The effective date (the “Effective
Date”) of this Agreement shall be the date on which the Facility
Agent confirms to the Parent  and the  Banks that it has received the documents and evidence set
out in Schedule 2 (Conditions Precedent),
in each case in form and substance satisfactory to it (acting reasonably), or,
as the case may be, the 

 

3

 

requirement to provide any of such documents and/or
evidence has been waived by the Instructing Group.

 

5.                                      CONTINUITY AND
FURTHER ASSURANCE

 

5.1                                 Designation as a
Finance Document

 

In accordance with the
definition of “Finance Documents” set forth in
Clause 1.1 (Definitions) of the Original
Senior Bridge Facilities Agreement, the Parent and the Facility Agent designate
this Agreement and the Amended and Restated Senior Bridge Facilities Agreement
as a Finance Document (as such term is defined in the Amended and Restated
Senior Bridge Facilities Agreement).

 

5.2                                 Continuing Rights
and Obligations

 

The provisions of the Original
Senior Bridge Facilities Agreement shall, save as expressly amended by this
Agreement, continue in full force.

 

5.3                                 Further Assurance

 

Each Obligor shall, at the
reasonable request of the Security Agent and at its own expense, do all such
acts and things necessary or desirable to give effect to the amendments
effected or to be effected pursuant to this Agreement.

 

6.                                      AMENDMENT COSTS
AND EXPENSES

 

In accordance with the provisions of
Clause 27.4 (Amendment Costs) of the Original
Senior Bridge Facilities Agreement the Parent shall reimburse the Finance
Parties for all reasonable out-of-pocket costs and expenses (including
reasonable legal fees of a single counsel in each relevant jurisdiction)
together with any VAT thereon (subject to Clause 14.7(c) (VAT) of the Amended and Restated Senior Bridge Facilities)
directly incurred by such person in connection with this Agreement.

 

7.                                      COUNTERPARTS

 

This Agreement may be executed in any number of
counterparts and all of such counterparts taken together shall be deemed to
constitute one and the same instrument.

 

8.                                      GOVERNING LAW,
NOTICES AND JURISDICTION

 

8.1                                 This Agreement shall be governed by
and construed in accordance with English law.

 

8.2                                 The provisions of Clause 42 (Notices) and Clause 47 (Jurisdiction) of the Original Senior
Bridge Facilities Agreement shall be incorporated into this Agreement as if set
out in full in this Agreement and as if references in those clauses to “this
Agreement” are references to this Agreement.

 

[The remainder of
the page is intentionally left blank]

 

4

 

SCHEDULE 1

THE ORIGINAL PARTIES

 

Part 1

 

The
Banks

 

BNP Paribas

 

BNP Paribas
(Canada)

 

The Royal Bank of
Scotland plc

 

CALYON

 

Indosuez Finance
(UK) Limited

 

Part 2

 

The
Borrowers

 

HA Funding Pty
Limited (ACN 117 549 498)

 

Hertz Belgium
N.V.

 

Hertz Canada
Limited

 

Hertz France SAS

 

Equipole Finance
Services SAS

 

Hertz Equipement
France SAS

 

Hertz
Autovermietung GmbH

 

Hertz Italiana
S.p.A.

 

BNS Automobile
Funding B.V.

 

Hertz AG

 

Hertz (U.K.)
Limited

 

5

 

Part 3

 

The
Guarantors

 

Hertz
International, Ltd.

 

Hertz Australia
Pty. Limited (ABN 31 004 407 087)

 

Hertz Belgium
N.V.

 

Hertz France SAS

 

Hertz Equipement
France SAS

 

Equipole Finance
Services SAS

 

Hertz
Autovermietung GmbH

 

Hertz Italiana
S.p.A.

 

BNS Automobile
Funding B.V.

 

Stuurgroep
Holland B.V.

 

Hertz de España
S.A.

 

Hertz Alquiler de
Maquinaria S.L.

 

Hertz AG

 

Hertz (U.K.)
Limited

 

Hertz Europe
Limited

 

6

 

SCHEDULE 2

CONDITIONS PRECEDENT

 

A.            Agreements

 

1.             An executed copy of this Agreement.

 

2.             An executed copy of the
Supplemental Deed.

 

B.                                    Constitutional Documents

 

1.                                       A
copy, certified as a true and up to date copy by an Authorised Signatory of
each Obligor (other than Hertz Note Issuer Pty Limited and Hertz Investment
(Holdings) Pty Limited), of the constitutional documents of such Obligor,
provided that to the extent that the constitutional documents of any Original
Obligor have not been amended, modified, supplemented and/or replaced since 21 December 2005
or, if later, on the date they were last provided to the Facility Agent, an
Authorised Signatory of such Original Obligor shall certify to the Facility
Agent that the copy in the Facility Agent’s possession is still correct,
complete and in full force and effect as at a date no earlier than the date of
this Agreement.

 

2.                                       A
copy, certified as a true and up to date copy by an Authorised Signatory of
each Additional Company, of the constitutional documents of such Additional
Company, provided that to the extent that the constitutional documents of any
Additional Company have not been amended, modified, supplemented and/or
replaced since 21 December 2005 or, if later, on the date they were last
provided to the Facility Agent, an Authorised Signatory of such Additional
Company shall certify to the Facility Agent that the copy in the Facility Agent’s
possession is still correct, complete and in full force and effect as at a date
no earlier than the date of this Agreement.

 

C.                                    Authorisations

 

1.                                       A
copy, certified as a true and up-to-date copy by an Authorised Signatory of
each Obligor (other than Hertz Note Issuer Pty Limited and Hertz Investment
(Holdings) Pty Limited), of a board resolution (or in the case of Hertz France
S.A.S. and Equipole Financial Services S.A.S., a sole shareholder resolution)
(and, if required, shareholder resolution) of such Obligor approving (i) the
execution, delivery and performance of each of the Relevant Agreements, (ii) the
terms and conditions of each Relevant Agreement and (iii) authorising a
named person or persons to sign this Agreement, the Supplemental Deed and any
documents to be delivered by such Obligor pursuant thereto (in addition to any
validly granted power of attorney required to authorize the same), which is in
form and substance satisfactory to the Agent (acting reasonably).

 

2.                                       A
copy, certified as a true and up-to-date copy by an Authorised Signatory of
each Additional Company, of a board resolution (and, if required, shareholder
resolution) of such Additional Company approving (i) the execution,
delivery and performance of the Supplemental Deed and Amended and Restated
Intercreditor Deed, (ii) the terms and conditions of the Supplemental Deed
and Amended and Restated Intercreditor Deed and (iii) authorising a named
person or persons to sign the Supplemental Deed and any documents to be
delivered by such Additional Company pursuant thereto (in 

 

7

 

addition to any validly granted power of attorney
required to authorize the same), which is in form and substance satisfactory to
the Agent (acting reasonably).

 

3.                                       A
certificate of an Authorised Signatory of each Obligor (other than Hertz Note
Issuer Pty Limited and Hertz Investment (Holdings) Pty Limited) setting out the
names and signatures of the persons authorised to sign, on behalf of such
Obligor, the Agreement, the Supplemental Deed and any documents to be delivered
by such Obligor pursuant thereto.

 

4.                                       A
certificate of an Authorised Signatory of each Additional Company setting out
the names and signatures of the persons authorised to sign, on behalf of such
Additional Company, the Supplemental Deed and any documents to be delivered by
such Additional Company pursuant thereto.

 

5.                                       Where
customary, certificates of good standing from the jurisdiction of organisation
of each Obligor (other than Hertz Note Issuer Pty Limited and Hertz Investment
(Holdings) Pty Limited).

 

6.                                       Where
customary, certificates of good standing from the jurisdiction of organisation
of each Additional Company.

 

7.                                       A
copy of any other authorisation or other document, opinion or assurance which
the Facility Agent (acting reasonably) has notified the Parent is necessary in
connection with the entry into and performance of, and the transactions
contemplated by each of the Relevant Agreements or the validity and
enforceability, respectively, thereof.

 

D.                                    Opinions

 

1.                                       A
capacity opinion of Debevoise & Plimpton LLP, Paris counsel to the
Equity Investors  matters of French law
in the agreed form.

 

2                                          A
capacity and enforceability opinion of Torys LLP, Canadian counsel to the
Equity Investors, as to matters of Canadian law in the agreed form.

 

3.                                       A
capacity opinion of Debevoise & Plimpton LLP, Frankfurt counsel to the
Equity Investors as to matters of German law, in each case in the agreed form.

 

4.                                       A
capacity opinion of Richards, Layton & Finger, P.A., Delaware counsel
to the Equity Investors, in the agreed form.

 

5.                                       A
capacity opinion of Minter Ellison counsel to the Equity Investors as to
matters of Australian law and in the agreed form.

 

6.                                       A
capacity opinion of Bonelli Erede Pappalardo, Italian counsel to the Equity
Investors as to matters of Italian law and in the agreed form.

 

7.                                       A
capacity opinion of Loyens, Netherlands counsel to the Equity Investors as to
matters of Netherlands law and in the agreed form.

 

8.                                       A
capacity opinion of Schellenberg Wittmer, Swiss counsel to the Equity Investors
and in each case as to matters of Switzerland law and in the agreed form.

 

8

 

9.                                       A
capacity opinion of Cuatrecasas, Spanish counsel to the Equity Investors and
enforceability opinion of Uria Menendez, Madrid counsel to the Arrangers, as to
matters of Spanish law and in the agreed form.

 

10.                                 A
capacity opinion of Loyens, Dutch counsel to the Equity Investors as to matters
of Belgian law and in the agreed form.

 

11.                                 A
capacity opinion of Debevoise & Plimpton LLP, London counsel to the
Equity Investors and (ii) an enforceability opinion of White &
Case, London counsel to the Arrangers, as to matters of English law and in the
agreed form.

 

12.                                 A
capacity opinion of Demarest and Almeida, counsel to the Equity Investors as to
matters of Brazilian law, in the agreed form.

 

13.                                 A
capacity opinion of Bell Gully, counsel to the Equity Investors as to matters
of New Zealand law, in the agreed form.

 

14.                                 An
opinion as to matters of (i) due authorisation, execution and delivery and
no conflict of in-house counsel to The Hertz Corporation and (ii) enforceability
of Debevoise & Plimpton LLP, New York counsel to The Hertz Corporation
in relation to the Supplemental Deed in the agreed form.

 

15.                                 A
capacity opinion of A&L Goodbody, counsel to the Equity Investors as to
matters of Irish law, in the agreed form.

 

E.                                      Payments

 

Evidence that all fees and expenses payable under
the Finance Documents or in connection with this Agreement have been paid.

 

9

 

 

SCHEDULE 3

AMENDED AND RESTATED SENIOR BRIDGE FACILITIES AGREEMENT

 

21
December 2005

as amended and restated on 21 March 2007

 

SENIOR
BRIDGE FACILITIES AGREEMENT

(in
relation to Facilities A1, A2 and C)

 

among

 

HERTZ
INTERNATIONAL, LTD.

as Parent

 

THE
ORIGINAL BORROWERS

THE
ORIGINAL GUARANTORS

HERTZ
EUROPE LIMITED

as Coordinator

 

BNP
PARIBAS

and

THE
ROYAL BANK OF SCOTLAND PLC

as Mandated Lead Arrangers

 

CALYON

as Co-Arranger

 

BNP
PARIBAS,

THE
ROYAL BANK OF SCOTLAND PLC

and

CALYON

as Joint Bookrunners

 

BNP
PARIBAS

as Facility Agent

 

BNP
PARIBAS

as Security Agent

 

BNP
PARIBAS

as Global Coordinator

 

THE
FINANCIAL INSTITUTIONS

NAMED
HEREIN

as Banks

 

This Agreement is entered into on the basis that it will have the benefit
of and be subject to the terms of an Intercreditor Deed dated  21 December 2005,
as amended and restated on or about    March 2007

 

5 Old Broad Street

London EC2N 1DW

 

10

 

TABLE
OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
  1.

  	
  DEFINITIONS AND INTERPRETATION

  	
  1

  
	
   

  	
  1.1

  	
  Definitions

  	
  1

  
	
   

  	
  1.2

  	
  Interpretation

  	
  106

  
	
   

  	
  1.3

  	
  Australian Borrowers

  	
  109

  
	
   

  	
  1.4

  	
  Facility Agent

  	
  110

  
	
   

  	
  1.5

  	
  Currency Symbols

  	
  110

  
	
   

  	
  1.6

  	
  Agreements and Statutes

  	
  110

  
	
   

  	
  1.7

  	
  Headings

  	
  110

  
	
   

  	
  1.8

  	
  Time

  	
  110

  
	
   

  	
  1.9

  	
  Singular and Plural

  	
  111

  
	
   

  	
  1.10

  	
  Third Party Rights

  	
  111

  
	
   

  	
  1.11

  	
  Calculations

  	
  111

  
	
   

  	
  1.12

  	
  New York Law

  	
  111

  
	
   

  	
  1.13

  	
  Limited Recourse – Australian Orphan SPV

  	
  111

  
	
   

  	
  1.14

  	
  Inconsistencies with other
  Finance Documents

  	
  112

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  THE FACILITIES

  	
  112

  
	
   

  	
  2.1

  	
  Grant of the Facilities

  	
  112

  
	
   

  	
  2.2

  	
  Purpose and Application of each A Facility

  	
  115

  
	
   

  	
  2.3

  	
  Purpose and Application of C Facility

  	
  115

  
	
   

  	
  2.4

  	
  Professional Market Party Representation

  	
  116

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  CONDITIONS PRECEDENT

  	
  117

  
	
   

  	
  3.1

  	
  Initial Conditions Precedent

  	
  117

  
	
   

  	
  3.2

  	
  Additional Conditions Precedent

  	
  117

  
	
   

  	
  3.3

  	
  General Conditions Subsequent

  	
  117

  
	
   

  	
  3.4

  	
  Several Obligations

  	
  118

  
	
   

  	
  3.5

  	
  Several Rights

  	
  118

  
	
   

  	
  3.6

  	
  Coordinator

  	
  118

  
	
   

  	
   

  	
   

  
	
  4.

  	
  UTILISATION OF THE FACILITIES

  	
  119

  
	
   

  	
  4.1

  	
  Utilisation Conditions

  	
  119

  
	
   

  	
  4.2

  	
  Certain Funds Conditions

  	
  123

  
	
   

  	
  4.3

  	
  Delivery of an Asset Report for Letters of Credit

  	
  123

  
	
   

  	
  4.4

  	
  Completion of Letters of Credit

  	
  123

  
	
   

  	
  4.5

  	
  Renewal of a Letter of Credit

  	
  123

  
	
   

  	
  4.6

  	
  Each Bank’s Participation in Advances

  	
  124

  
	
   

  	
  4.7

  	
  Restrictions on Participation in Letters of Credit

  	
  124

  
	
   

  	
  4.8

  	
  Canadian Advances

  	
  124

  
	
   

  	
  4.9

  	
  Reduction of Available Commitment

  	
  125

  
	
   

  	
   

  	
   

  
	
  5.

  	
  UTILISATION OF THE SWINGLINE FACILITIES

  	
  126

  
	
   

  	
  5.1

  	
  General

  	
  126

  
	
   

  	
  5.2

  	
  Delivery of a Utilisation Notice for Swingline Advances

  	
  126

  
	
   

  	
  5.3

  	
  Completion of a Utilisation Notice for Swingline Advances

  	
  127

  
	
   

  	
  5.4

  	
  Swingline Banks’ Participation

  	
  129

  
	
   

  	
  5.5

  	
  Relationship with the Other Facilities

  	
  130

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  SWINGLINE ADVANCES

  	
  131

  
					

 

i

 

	
   

  	
  6.1

  	
  Swingline

  	
  131

  
	
   

  	
  6.2

  	
  Purpose

  	
  131

  
	
   

  	
  6.3

  	
  Swingline Agent

  	
  131

  
	
   

  	
  6.4

  	
  Conditions of assignment or transfer

  	
  132

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  LETTER OF CREDIT COMMISSION, L/C ISSUER FEE
  and COSTS AND EXPENSES

  	
  132

  
	
   

  	
  7.1

  	
  Letter of Credit Commission

  	
  132

  
	
   

  	
  7.2

  	
  L/C Issuer Fee

  	
  132

  
	
   

  	
  7.3

  	
  Costs and Expenses

  	
  132

  
	
   

  	
  8.

  	
  PAYMENT AND CALCULATION OF INTEREST

  	
  133

  
	
   

  	
  8.1

  	
  Payment of Interest

  	
  133

  
	
   

  	
  8.2

  	
  Calculation of Interest

  	
  133

  
	
   

  	
  8.3

  	
  Effective Global Rate (Taux Effectif Global)

  	
  133

  
	
   

  	
  8.4

  	
  Italian Law Interest Cap

  	
  134

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  MARKET DISRUPTION AND ALTERNATIVE INTEREST
  RATES

  	
  134

  
	
   

  	
  9.1

  	
  Market Disruption

  	
  134

  
	
   

  	
  9.2

  	
  Substitute Interest Period and Interest Rate

  	
  135

  
	
   

  	
  9.3

  	
  Alternative Rate

  	
  135

  
	
  10.

  	
  NOTIFICATION

  	
  135

  
	
   

  	
  10.1

  	
  Advances and Letters of Credit

  	
  135

  
	
   

  	
  10.2

  	
  Interest Rate Determination

  	
  135

  
	
   

  	
  10.3

  	
  Demands under Letters of Credit

  	
  136

  
	
   

  	
  10.4

  	
  Changes to Interest Rates

  	
  136

  
	
   

  	
  10.5

  	
  Netting of Advances

  	
  136

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  REPAYMENT OF ADVANCES

  	
  137

  
	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
  C BORROWER’S LIABILITIES IN RELATION TO
  LETTERS OF CREDIT

  	
  137

  
	
   

  	
  12.1

  	
  C Borrower’s Indemnity to L/C Issuers

  	
  137

  
	
   

  	
  12.2

  	
  C Borrower’s Indemnity to Banks

  	
  138

  
	
   

  	
  12.3

  	
  Preservation of Rights

  	
  138

  
	
   

  	
  12.4

  	
  Settlement Conditional

  	
  139

  
	
   

  	
  12.5

  	
  Right to make Payments under Letters of Credit

  	
  139

  
	
   

  	
  12.6

  	
  Advances to meet Demands in respect of Letters of Credit

  	
  139

  
	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
  CANCELLATION AND PREPAYMENT

  	
  139

  
	
   

  	
  13.1

  	
  Voluntary Cancellation

  	
  139

  
	
   

  	
  13.2

  	
  Automatic Cancellation

  	
  140

  
	
   

  	
  13.3

  	
  Mandatory Reduction of the Facilities

  	
  140

  
	
   

  	
  13.4

  	
  Change of Control, Sale and Change of Ownership

  	
  141

  
	
   

  	
  13.5

  	
  Mandatory Prepayment on breach of Borrowing Base

  	
  142

  
	
   

  	
  13.6

  	
  Limitations on Obligations

  	
  142

  
	
   

  	
  13.7

  	
  Application of Amounts Prepaid

  	
  144

  
	
   

  	
  13.8

  	
  Prepayment Accounts

  	
  145

  
	
   

  	
  13.9

  	
  Cancellation of Letters of Credit

  	
  145

  
	
   

  	
  13.10

  	
  Notice of Cancellation or Prepayment

  	
  145

  
	
   

  	
  13.11

  	
  Notice of Removal of a Bank or L/C Issuer

  	
  145

  
	
   

  	
  13.12

  	
  Removal of a Bank or L/C Issuer

  	
  146

  
	
   

  	
  13.13

  	
  No Further Availability

  	
  146

  
	
   

  	
  13.14

  	
  No Other Repayments or Cancellation

  	
  146

  
						

 

ii

 

	
   

  	
  13.15

  	
  Replacement of L/C Issuer

  	
  146

  
	
   

  	
  13.16

  	
  Prepayment of Advances by Australian Borrower

  	
  146

  
	
   

  	
   

  	
   

  	
   

  
	
  14.  

  	
  TAXES

  	
  147

  
	
   

  	
  14.1

  	
  Tax Gross-up

  	
  147

  
	
   

  	
  14.2

  	
  Tax Indemnity

  	
  147

  
	
   

  	
  14.3

  	
  Banks’ Tax Status

  	
  148

  
	
   

  	
  14.4

  	
  Claims by Banks

  	
  149

  
	
   

  	
  14.5

  	
  Double Taxation Relief

  	
  149

  
	
   

  	
  14.6

  	
  US Filings

  	
  149

  
	
   

  	
  14.7

  	
  VAT

  	
  152

  
	
   

  	
  14.8

  	
  Tax Forms

  	
  153

  
	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
  TAX RECEIPTS

  	
  153

  
	
   

  	
  15.1

  	
  Notification of Requirement to Deduct Tax

  	
  153

  
	
   

  	
  15.2

  	
  Evidence of Payment of Tax

  	
  153

  
	
   

  	
  15.3

  	
  Tax Credit Payment

  	
  153

  
	
   

  	
  15.4

  	
  Tax and Other Affairs

  	
  154

  
	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
  INCREASED COSTS

  	
  154

  
	
   

  	
  16.1

  	
  Increased Costs

  	
  154

  
	
   

  	
  16.2

  	
  Increased Costs Claims

  	
  155

  
	
   

  	
  16.3

  	
  Exclusions

  	
  155

  
	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
  ILLEGALITY

  	
  156

  
	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
  MITIGATION AND OTHER PROVISIONS RELATING TO
  TAXES AND INCREASED COSTS

  	
  156

  
	
   

  	
  18.1

  	
  Mitigation

  	
  156

  
	
   

  	
  18.2

  	
  Removal of Affected Bank

  	
  157

  
	
   

  	
  18.3

  	
  Change in Facility Office

  	
  157

  
	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
  REPRESENTATIONS

  	
  157

  
	
   

  	
  19.1

  	
  Status

  	
  158

  
	
   

  	
  19.2

  	
  Governing Law and Judgments

  	
  158

  
	
   

  	
  19.3

  	
  Binding Obligations

  	
  158

  
	
   

  	
  19.4

  	
  Execution of the Finance Documents

  	
  158

  
	
   

  	
  19.5

  	
  No Material Proceedings

  	
  159

  
	
   

  	
  19.6

  	
  Financial Statements

  	
  159

  
	
   

  	
  19.7

  	
  No Material Adverse Change

  	
  160

  
	
   

  	
  19.8

  	
  Validity and Admissibility in Evidence

  	
  160

  
	
   

  	
  19.9

  	
  Claims pari passu

  	
  160

  
	
   

  	
  19.10

  	
  Compliance with Laws

  	
  160

  
	
   

  	
  19.11

  	
  No Winding-up

  	
  161

  
	
   

  	
  19.12

  	
  No Material Defaults

  	
  161

  
	
   

  	
  19.13

  	
  No Misleading Information

  	
  161

  
	
   

  	
  19.14

  	
  Environmental Compliance

  	
  162

  
	
   

  	
  19.15

  	
  Environmental Claims

  	
  162

  
	
   

  	
  19.16

  	
  Encumbrances and Indebtedness

  	
  162

  
	
   

  	
  19.17

  	
  Ranking

  	
  163

  
	
   

  	
  19.18

  	
  Ownership of the Obligors

  	
  163

  
	
   

  	
  19.19

  	
  Ownership of Parent

  	
  163

  
	
   

  	
  19.20

  	
  No Event of Default

  	
  163

  
					

 

iii

 

	
   

  	
  19.21

  	
  Consents and Approvals

  	
  163

  
	
   

  	
  19.22

  	
  Insurance

  	
  163

  
	
   

  	
  19.23

  	
  Taxation

  	
  164

  
	
   

  	
  19.24

  	
  Good Title to Assets

  	
  164

  
	
   

  	
  19.25

  	
  US Government Regulations

  	
  164

  
	
   

  	
  19.26

  	
  Pensions

  	
  165

  
	
   

  	
  19.27

  	
  The Acquisition

  	
  165

  
	
   

  	
  19.28

  	
  Centre of Main Interests

  	
  165

  
	
   

  	
  19.29

  	
  Professional Market Party

  	
  165

  
	
   

  	
  19.30

  	
  Time of making representations

  	
  165

  
	
   

  	
  19.31

  	
  Repetition of Representations

  	
  166

  
	
   

  	
   

  	
   

  	
   

  
	
  20.

  	
  FINANCIAL INFORMATION

  	
  166

  
	
   

  	
  20.1

  	
  Annual Statements

  	
  166

  
	
   

  	
  20.2

  	
  Quarterly Statements

  	
  167

  
	
   

  	
  20.3

  	
  Reports

  	
  167

  
	
   

  	
  20.4

  	
  Annual Budget

  	
  168

  
	
   

  	
  20.5

  	
  Other Financial Information

  	
  168

  
	
   

  	
  20.6

  	
  Accounting Policies

  	
  168

  
	
   

  	
  20.7

  	
  “Know your customer” checks

  	
  168

  
	
   

  	
   

  	
   

  	
   

  
	
  21.

  	
  POSITIVE COVENANTS

  	
  169

  
	
   

  	
  21.1

  	
  Maintenance of Legal Status and Validity

  	
  169

  
	
   

  	
  21.2

  	
  Insurance

  	
  170

  
	
   

  	
  21.3

  	
  Environmental Compliance

  	
  170

  
	
   

  	
  21.4

  	
  Environmental Claims

  	
  170

  
	
   

  	
  21.5

  	
  Notification of Defaults

  	
  170

  
	
   

  	
  21.6

  	
  Claims Pari Passu

  	
  171

  
	
   

  	
  21.7

  	
  Consents and Approvals

  	
  171

  
	
   

  	
  21.8

  	
  Conduct of Business

  	
  171

  
	
   

  	
  21.9

  	
  Tax

  	
  171

  
	
   

  	
  21.10

  	
  Preservation of Assets

  	
  172

  
	
   

  	
  21.11

  	
  Security Preservation

  	
  172

  
	
   

  	
  21.12

  	
  Litigation

  	
  172

  
	
   

  	
  21.13

  	
  Labour Disputes

  	
  172

  
	
   

  	
  21.14

  	
  Access

  	
  172

  
	
   

  	
  21.15

  	
  Intellectual Property

  	
  173

  
	
   

  	
  21.16

  	
  Group Acceding Guarantors

  	
  173

  
	
   

  	
  21.17

  	
  Syndication

  	
  175

  
	
   

  	
  21.18

  	
  Share Security

  	
  175

  
	
   

  	
  21.19

  	
  Existing Indebtedness

  	
  176

  
	
   

  	
  21.20

  	
  New Vehicle and Equipment Acquisitions

  	
  176

  
	
   

  	
  21.21

  	
  Purchase Price

  	
  177

  
	
   

  	
  21.22

  	
  Securitisation and Take-Out Financing

  	
  177

  
	
   

  	
  21.23

  	
  Pension Schemes

  	
  179

  
	
   

  	
  21.24

  	
  On-Lending

  	
  179

  
	
   

  	
  21.25

  	
  Hedging Transactions

  	
  180

  
	
   

  	
  21.26

  	
  Further Assurances

  	
  180

  
	
   

  	
  21.27

  	
  Canadian Guarantor

  	
  181

  
	
   

  	
  21.28

  	
  VAT; Accounts

  	
  181

  
	
   

  	
   

  	
   

  	
   

  
	
  22.

  	
  NEGATIVE COVENANTS

  	
  182

  

 

iv

 

	
   

  	
  22.1

  	
  Negative Pledge

  	
  182

  
	
   

  	
  22.2

  	
  Loans and Guarantees

  	
  182

  
	
   

  	
  22.3

  	
  Indebtedness

  	
  182

  
	
   

  	
  22.4

  	
  Hedging Transactions

  	
  182

  
	
   

  	
  22.5

  	
  Subordinated Debt

  	
  182

  
	
   

  	
  22.6

  	
  Disposals

  	
  182

  
	
   

  	
  22.7

  	
  Acquisitions

  	
  182

  
	
   

  	
  22.8

  	
  Distributions

  	
  183

  
	
   

  	
  22.9

  	
  Change of Business

  	
  183

  
	
   

  	
  22.10

  	
  Mergers

  	
  183

  
	
   

  	
  22.11

  	
  Acquisition Agreement and Other Documents

  	
  183

  
	
   

  	
  22.12

  	
  Centre of Main Interests

  	
  184

  
	
   

  	
  22.13

  	
  Arm’s Length Transactions

  	
  184

  
	
   

  	
  22.14

  	
  A2 Anti-Layering

  	
  186

  
	
   

  	
  22.15

  	
  Maximum number of Lenders

  	
  186

  
	
   

  	
   

  	
   

  	
   

  
	
  23.

  	
  EVENTS OF DEFAULT

  	
  186

  
	
   

  	
  23.1

  	
  Failure to Pay

  	
  186

  
	
   

  	
  23.2

  	
  Misrepresentation

  	
  186

  
	
   

  	
  23.3

  	
  Obligations

  	
  187

  
	
   

  	
  23.4

  	
  Cross Default

  	
  187

  
	
   

  	
  23.5

  	
  Insolvency and Rescheduling

  	
  188

  
	
   

  	
  23.6

  	
  Winding-up

  	
  188

  
	
   

  	
  23.7

  	
  Execution or Distress

  	
  189

  
	
   

  	
  23.8

  	
  Failure to Comply with Final Judgment

  	
  189

  
	
   

  	
  23.9

  	
  Governmental Intervention

  	
  189

  
	
   

  	
  23.10

  	
  Repudiation and Rescission

  	
  189

  
	
   

  	
  23.11

  	
  Unlawfulness and Invalidity

  	
  190

  
	
   

  	
  23.12

  	
  Intercreditor Deed

  	
  190

  
	
   

  	
  23.13

  	
  The Group’s Business

  	
  190

  
	
   

  	
  23.14

  	
  Material Adverse Change

  	
  190

  
	
   

  	
  23.15

  	
  Auditor’s Qualification

  	
  190

  
	
   

  	
  23.16

  	
  Acceleration and Cancellation

  	
  190

  
	
   

  	
  23.17

  	
  Non-material Subsidiaries

  	
  191

  
	
   

  	
  23.18

  	
  Certain Funds Period

  	
  191

  
	
   

  	
  23.19

  	
  Advances Due on Demand

  	
  192

  
	
   

  	
  23.20

  	
  Exercise of Sale Right

  	
  192

  
	
   

  	
  23.21

  	
  U.S. Bankruptcy

  	
  193

  
	
   

  	
  23.22

  	
  Clean-Up Period

  	
  193

  
	
   

  	
   

  	
   

  	
   

  
	
  24.

  	
  GUARANTEE AND INDEMNITY

  	
  193

  
	
   

  	
  24.1

  	
  Guarantee and Indemnity

  	
  193

  
	
   

  	
  24.2

  	
  Additional Security

  	
  196

  
	
   

  	
  24.3

  	
  Continuing Obligations

  	
  196

  
	
   

  	
  24.4

  	
  Obligations not Discharged

  	
  196

  
	
   

  	
  24.5

  	
  Settlement Conditional

  	
  197

  
	
   

  	
  24.6

  	
  Exercise of Rights

  	
  197

  
	
   

  	
  24.7

  	
  Deferral of Guarantor’s Rights

  	
  197

  
	
   

  	
  24.8

  	
  Suspense Accounts

  	
  198

  
	
   

  	
  24.9

  	
  French Guarantors

  	
  198

  
	
   

  	
  24.10

  	
  German Guarantors

  	
  199

  

 

v

 

	
   

  	
  24.11

  	
  Belgian Guarantors

  	
  201

  
	
   

  	
  24.12

  	
  UK Guarantors

  	
  202

  
	
   

  	
  24.13

  	
  Australian Guarantors

  	
  202

  
	
   

  	
  24.14

  	
  Italian Guarantors

  	
  202

  
	
   

  	
  24.15

  	
  Spanish Guarantors

  	
  203

  
	
   

  	
  24.16

  	
  Swiss Guarantors

  	
  204

  
	
   

  	
  24.17

  	
  Dutch Guarantors

  	
  206

  
	
   

  	
  24.18

  	
  German Confirmation

  	
  206

  
	
   

  	
  24.19

  	
  Other Guarantors

  	
  208

  
	
   

  	
   

  	
   

  	
   

  
	
  25.

  	
  COMMITMENT COMMISSION AND FEES

  	
  208

  
	
   

  	
  25.1

  	
  Commitment Commission

  	
  208

  
	
   

  	
  25.2

  	
  Fees

  	
  211

  
	
   

  	
   

  	
   

  	
   

  
	
  26.

  	
  Canadian Permitted
  Bank Fees

  	
  211

  
	
   

  	
   

  	
   

  	
   

  
	
  27.

  	
  COSTS AND EXPENSES

  	
  213

  
	
   

  	
  27.1

  	
  Transaction Expenses

  	
  213

  
	
   

  	
  27.2

  	
  Preservation and Enforcement of Rights

  	
  213

  
	
   

  	
  27.3

  	
  Stamp Taxes

  	
  214

  
	
   

  	
  27.4

  	
  Amendment Costs

  	
  214

  
	
   

  	
  27.5

  	
  Banks’ Liabilities for Costs

  	
  214

  
	
   

  	
  27.6

  	
  No Other Tax

  	
  214

  
	
   

  	
   

  	
   

  	
   

  
	
  28.

  	
  DEFAULT INTEREST AND BREAK COSTS

  	
  214

  
	
   

  	
  28.1

  	
  Default Interest Periods

  	
  214

  
	
   

  	
  28.2

  	
  Default Interest

  	
  215

  
	
   

  	
  28.3

  	
  Payment of Default Interest

  	
  215

  
	
   

  	
  28.4

  	
  Break Costs

  	
  215

  
	
   

  	
   

  	
   

  	
   

  
	
  29.

  	
  INDEMNITIES

  	
  215

  
	
   

  	
  29.1

  	
  Indemnity

  	
  215

  
	
   

  	
  29.2

  	
  Currency Indemnity

  	
  216

  
	
   

  	
  29.3

  	
  Acquisition Indemnity

  	
  216

  
	
   

  	
   

  	
   

  	
   

  
	
  30.

  	
  CURRENCY OF ACCOUNT AND PAYMENT

  	
  218

  
	
   

  	
   

  	
   

  	
   

  
	
  31.

  	
  PAYMENTS

  	
  219

  
	
   

  	
  31.1

  	
  Payments to the Facility Agent

  	
  219

  
	
   

  	
  31.2

  	
  Payments by the Facility Agent

  	
  220

  
	
   

  	
  31.3

  	
  No Set-off

  	
  220

  
	
   

  	
  31.4

  	
  Clawback

  	
  220

  
	
   

  	
  31.5

  	
  Partial Payments

  	
  221

  
	
   

  	
  31.6

  	
  Variation of Partial Payments

  	
  221

  
	
   

  	
  31.7

  	
  Business Days

  	
  221

  
	
   

  	
   

  	
   

  	
   

  
	
  32.

  	
  SET-OFF

  	
  221

  
	
   

  	
  32.1

  	
  Contractual Set-off

  	
  221

  
	
   

  	
  32.2

  	
  Set-off not Mandatory

  	
  222

  
	
   

  	
   

  	
   

  	
   

  
	
  33.

  	
  SHARING

  	
  222

  
	
   

  	
  33.1

  	
  Payments to Banks

  	
  222

  
	
   

  	
  33.2

  	
  Redistribution of Payments

  	
  222

  
	
   

  	
  33.3

  	
  Recovering Bank’s Rights

  	
  222

  
	
   

  	
  33.4

  	
  Repayable Recoveries

  	
  222

  
					

 

vi

 

	
   

  	
  33.5

  	
  Exception

  	
  223

  
	
   

  	
   

  	
   

  	
   

  
	
  34.

  	
  THE FACILITY AGENT, THE SECURITY AGENT, THE
  GLOBAL COORDINATOR AND THE FINANCE PARTIES

  	
  223

  
	
   

  	
  34.1

  	
  Appointment of the Facility Agent and the Global Coordinator

  	
  223

  
	
   

  	
  34.2

  	
  Security Agent’s, Facility Agent’s and Global Coordinator’s
  Discretions

  	
  224

  
	
   

  	
  34.3

  	
  Security Agent’s, Facility Agent’s and Global Coordinator’s
  Assumptions

  	
  225

  
	
   

  	
  34.4

  	
  Facility Agent’s Obligations

  	
  225

  
	
   

  	
  34.5

  	
  Excluded Obligations of Facility Agent, Security Agent, Global
  Coordinator and Arrangers

  	
  226

  
	
   

  	
  34.6

  	
  Indemnification

  	
  227

  
	
   

  	
  34.7

  	
  Exclusion of Liabilities

  	
  228

  
	
   

  	
  34.8

  	
  No Actions

  	
  228

  
	
   

  	
  34.9

  	
  Business with Group

  	
  229

  
	
   

  	
  34.10

  	
  Resignation

  	
  229

  
	
   

  	
  34.11

  	
  Removal of Facility Agent or Global Coordinator

  	
  229

  
	
   

  	
  34.12

  	
  Successor Facility Agent or Global Coordinator

  	
  229

  
	
   

  	
  34.13

  	
  Rights and Obligations

  	
  229

  
	
   

  	
  34.14

  	
  Own Responsibility

  	
  230

  
	
   

  	
  34.15

  	
  Agency Division Separate

  	
  230

  
	
   

  	
  34.16

  	
  Security Agent, Facility Agent or the Global Coordinator as Finance
  Parties

  	
  231

  
	
   

  	
  34.17

  	
  Dealings with the Facility Agent

  	
  231

  
	
   

  	
  34.18

  	
  Information

  	
  231

  
	
   

  	
  34.19

  	
  Copies of Notices

  	
  231

  
	
   

  	
   

  	
   

  	
   

  
	
  35.

  	
  THE BANKS AND THE L/C ISSUER

  	
  231

  
	
   

  	
  35.1

  	
  Banks’ Indemnity

  	
  231

  
	
   

  	
  35.2

  	
  Direct Participation

  	
  231

  
	
   

  	
  35.3

  	
  Obligations not Discharged

  	
  232

  
	
   

  	
  35.4

  	
  Settlement Conditional

  	
  232

  
	
   

  	
  35.5

  	
  Exercise of Rights

  	
  232

  
	
   

  	
   

  	
   

  	
   

  
	
  36.

  	
  ASSIGNMENTS AND TRANSFERS

  	
  233

  
	
   

  	
  36.1

  	
  Binding Agreement

  	
  233

  
	
   

  	
  36.2

  	
  Assignments and Transfers by Obligors

  	
  233

  
	
   

  	
  36.3

  	
  Assignments and Transfers by Banks

  	
  233

  
	
   

  	
  36.4

  	
  Original Banks

  	
  235

  
	
   

  	
  36.5

  	
  Assignments by Banks

  	
  235

  
	
   

  	
  36.6

  	
  Transfers by Banks

  	
  236

  
	
   

  	
  36.7

  	
  Assignment and Transfer Fees

  	
  236

  
	
   

  	
  36.8

  	
  Disclosure of Information

  	
  237

  
	
   

  	
  36.9

  	
  The Register

  	
  238

  
	
   

  	
  36.10

  	
  Affiliates/Branches

  	
  238

  
	
   

  	
  36.11

  	
  Assignments and Transfers of Loan Notes

  	
  239

  
	
   

  	
  36.12

  	
  Application to Canadian Sale Right

  	
  239

  
	
   

  	
   

  	
   

  	
   

  
	
  37.

  	
  CHANGE OF CURRENCY

  	
  240

  
	
   

  	
   

  	
   

  	
   

  
	
  38.

  	
  ADDITIONAL BORROWERS

  	
  240

  
	
   

  	
  38.1

  	
  Request for Additional Borrower

  	
  240

  
	
   

  	
  38.2

  	
  Borrower Conditions Precedent

  	
  240

  
	
   

  	
  38.3

  	
  Restrictions on Lending to Certain Borrowers

  	
  241

  
					

 

vii

 

	
   

  	
  38.4

  	
  Resignation of a Borrower

  	
  241

  
	
   

  	
  38.5

  	
  Termination of a Borrower’s rights

  	
  242

  
	
   

  	
   

  	
   

  	
   

  
	
  39.

  	
  ADDITIONAL GUARANTORS, RESIGNATION OF
  GUARANTORS AND DESIGNATED OBLIGORS; CHANGE OF COORDINATOR

  	
  244

  
	
   

  	
  39.1

  	
  Request for Additional Guarantor

  	
  244

  
	
   

  	
  39.2

  	
  Guarantor Conditions Precedent

  	
  244

  
	
   

  	
  39.3

  	
  Resignation of a Guarantor

  	
  244

  
	
   

  	
  39.4

  	
  Request for Designated Obligor

  	
  245

  
	
   

  	
  39.5

  	
  Designated Obligor Conditions Precedent

  	
  245

  
	
   

  	
  39.6

  	
  Cessation of a Designated Obligor

  	
  245

  
	
   

  	
  39.7

  	
  Change of Coordinator

  	
  245

  
	
   

  	
   

  	
   

  	
   

  
	
  40.

  	
  CALCULATIONS AND EVIDENCE OF DEBT

  	
  245

  
	
   

  	
  40.1

  	
  Basis of Accrual

  	
  245

  
	
   

  	
  40.2

  	
  Quotations

  	
  247

  
	
   

  	
  40.3

  	
  Evidence of Debt

  	
  247

  
	
   

  	
  40.4

  	
  Control Accounts

  	
  247

  
	
   

  	
  40.5

  	
  Prima Facie Evidence

  	
  247

  
	
   

  	
  40.6

  	
  Certificates of Banks

  	
  247

  
	
   

  	
  40.7

  	
  Facility Agent’s Certificates

  	
  248

  
	
   

  	
  40.8

  	
  Letters of Credit

  	
  248

  
	
   

  	
   

  	
   

  	
   

  
	
  41.

  	
  REMEDIES AND WAIVERS, PARTIAL INVALIDITY

  	
  248

  
	
   

  	
  41.1

  	
  Remedies and Waivers

  	
  248

  
	
   

  	
  41.2

  	
  Partial Invalidity

  	
  248

  
	
   

  	
   

  	
   

  	
   

  
	
  42.

  	
  NOTICES

  	
  248

  
	
   

  	
  42.1

  	
  Communications in Writing

  	
  248

  
	
   

  	
  42.2

  	
  Addresses

  	
  248

  
	
   

  	
  42.3

  	
  Delivery

  	
  252

  
	
   

  	
  42.4

  	
  Electronic communication

  	
  253

  
	
   

  	
  42.5

  	
  English Language

  	
  253

  
	
   

  	
  42.6

  	
  Notification of Changes

  	
  253

  
	
   

  	
  42.7

  	
  Deemed Receipt by the Obligors

  	
  253

  
	
   

  	
   

  	
   

  	
   

  
	
  43.

  	
  COUNTERPARTS

  	
  253

  
	
   

  	
   

  	
   

  
	
  44.

  	
  AMENDMENTS

  	
  253

  
	
   

  	
  44.1

  	
  Amendments

  	
  253

  
	
   

  	
  44.2

  	
  Amendments Requiring Different Consent Levels

  	
  254

  
	
   

  	
  44.3

  	
  Exceptions

  	
  255

  
	
   

  	
   

  	
   

  	
   

  
	
  45.

  	
  LOAN NOTES TO BE ISSUED BY AUSTRALIAN
  BORROWERS

  	
  255

  
	
   

  	
  45.1

  	
  Loan Note Deed Poll

  	
  255

  
	
   

  	
  45.2

  	
  Issue of Loan Notes

  	
  256

  
	
   

  	
  45.3

  	
  Redemption of Loan Notes

  	
  256

  
	
   

  	
  45.4

  	
  Application of funds and update Loan Note Register

  	
  256

  
	
   

  	
  45.5

  	
  Establishment of Loan Note Register

  	
  256

  
	
   

  	
  45.6

  	
  Maintenance of Loan Note Register

  	
  256

  
	
   

  	
  45.7

  	
  Loan Note Register is paramount

  	
  257

  
	
   

  	
  45.8

  	
  Offers of Loan Notes

  	
  257

  
	
   

  	
  45.9

  	
  Qualifying Bank Representation

  	
  257

  
	
   

  	
   

  	
   

  	
   

  
	
  46.

  	
  GOVERNING LAW

  	
  257

  

 

viii

 

	
  47.

  	
  JURISDICTION

  	
  257

  
	
   

  	
  47.1

  	
  English Courts

  	
  257

  
	
   

  	
  47.2

  	
  Convenient Forum

  	
  258

  
	
   

  	
  47.3

  	
  Non Exclusive Jurisdiction

  	
  258

  
	
   

  	
  47.4

  	
  Service of Process

  	
  258

  
	
   

  	
   

  	
   

  	
   

  
	
  48.

  	
  PLEDGES ON BANK ACCOUNTS UNDER GENERAL TERMS AND CONDITIONS

  	
  258

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 1

  	
  THE BANKS AND THEIR COMMITMENTS

  	
  260

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 2

  	
  THE BORROWERS AND THE GUARANTORS

  	
  262

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 3

  	
  FORM OF TRANSFER CERTIFICATE

  	
  267

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 4

  	
  CONDITIONS PRECEDENT

  	
  273

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 5

  	
  UTILISATION NOTICES

  	
  279

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 6

  	
  FORM OF BORROWER ACCESSION MEMORANDUM

  	
  283

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 7

  	
  FORM OF GUARANTOR /COORDINATOR ACCESSION MEMORANDUM

  	
  286

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 8

  	
  ADDITIONAL CONDITIONS PRECEDENT

  	
  289

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 9

  	
  FORM OF RESIGNATION NOTICE

  	
  293

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 10

  	
  MANDATORY COST FORMULAE

  	
  294

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 11

  	
  FORM OF LETTER OF CREDIT

  	
  297

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 12

  	
  FORM OF TEG LETTER

  	
  299

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 13

  	
  ELIGIBLE CUSTOMER RECEIVABLES CRITERIA

  	
  301

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 14

  	
  EXISTING INDEBTEDNESS

  	
  304

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 15

  	
  TIMETABLE

  	
  305

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 16

  	
  FORM OF LOAN NOTE DEED POLL

  	
  307

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 17

  	
  CANADIAN PRO-RATA SHARE

  	
  311

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 18

  	
  SECURITY PRINCIPLES

  	
  312

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 19

  	
  FORM OF BANK CERTIFICATE

  	
  316

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 20

  	
  SECURITY DOCUMENTS

  	
  319

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 21

  	
  FORMS OF ASSET REPORTS

  	
  326

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 22

  	
  NOTIFICATION

  	
  329

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 23

  	
  FORM OF SPECIFIED ECF AMOUNT CERTIFICATE

  	
  334

  
					

 

ix

 

THIS
AGREEMENT is made on 21 December 2005 (as amended and
restated on    March 2007)

 

AMONG:

 

(1)                                 HERTZ INTERNATIONAL, LTD., a corporation
incorporated under the laws of the State of Delaware, having (as of the date
hereof) its registered office at 225 Brae Boulevard, Park Ridge, New Jersey,
07657 (the “Parent”);

 

(2)                                 THE COMPANIES listed in Part 1 of
Schedule 2 (The Borrowers and the Guarantors)
as Original Borrowers (the “Original Borrowers”);

 

(3)                                 THE COMPANIES listed in Part 2 of
Schedule 2 (The Borrowers and the Guarantors)
as Original Guarantors (the “Original Guarantors”);

 

(4)                                 HERTZ EUROPE LIMITED as Coordinator;

 

(5)                                 BNP PARIBAS  AND
THE ROYAL BANK OF SCOTLAND PLC as
mandated lead arrangers of the Facilities (each, a “Mandated
Lead Arranger” and together, the “Mandated Lead Arrangers”);

 

(6)                                 CALYON as co-arranger (the “Co-Arranger”);

 

(7)                                 BNP PARIBAS, THE ROYAL BANK OF SCOTLAND PLC AND CALYON as
joint bookrunners for the Facilities (together, the “Joint
Bookrunners”);

 

(8)                                 BNP PARIBAS as facility agent for the
Banks (the “Facility Agent”);

 

(9)                                 BNP PARIBAS as security agent and
security trustee on behalf of the Finance Parties (as defined below) (the “Security Agent”);

 

(10)                          BNP PARIBAS as documentation agent and
global coordinator for the Banks (the “Global Coordinator”);
and

 

(11)                          THE FINANCIAL INSTITUTIONS listed in
Schedule 1 (The Banks and their Commitments)
as Banks.

 

IT IS
AGREED as follows:

 

1.                                      DEFINITIONS AND
INTERPRETATION

 

1.1                                 Definitions

 

In this Agreement:

 

“25% Trigger”
means any time when the Euro Amount of the aggregate outstanding principal
amount of the A1 Advances and the A2 Advances is less than 25 per cent. of the
Euro Amount of the aggregate outstanding principal amount of (a) the
A1 Advances and the A2 Advances made on the Closing Date or (b) in
the case of any A1 Advances and A2 Advances made to any Australian Borrower,
all such Advances made on the Closing Date or not later than one Business Day
succeeding the Closing Date.

 

 

“A1 Advance Rate”
means:

 

(a)                                  if
neither the Final C Take-Out Financing nor any A Take-Out Financing has
occurred, 70 per cent.;

 

(b)                                 upon
the occurrence of the first A Take-Out Financing (x) 70 per cent. less (y) the
A Take-Out Adjustment Percentage multiplied by 87.5 per cent.; or

 

(c)                                  upon
the occurrence of any further A Take-Out Financings (x) the A1 Advance
Rate at the previous Reporting date less (y) the A Take-Out Adjustment
Percentage multiplied by 87.5 per cent.,

 

provided that should the Final C Take-Out Financing
occur prior to the Final A Take-Out Financing, the A1 Advance Rate (at the
previous Reporting Date) shall be further reduced by the relevant Final C
Take-Out Benefit Percentage multiplied by 87.5 per cent. and provided, further,
that any adjustment in the A1 Advance Rate pursuant to the foregoing clauses (b) and
(c) shall be allocated among the remaining A1 Borrowers as the Coordinator
shall designate (except to the extent such allocation would produce (after
giving effect to any adjustments to the percentage set forth in paragraph (a) of
the definition of “A1 Borrowing Base”)
(a) any violation of applicable law, (b) liability of any of the
officers, directors or shareholders of such member or any of its holding
companies or subsidiaries or any material risk of such liability, (c) violation
of the provisions of any joint venture governing or binding on such person or
its subsidiaries or holding companies, (d) material adverse effects on the
tax position (including, without limitation, the imposition of any material
withholding tax or the loss of any material tax deduction) of the Group or,
with respect to the Group, structuring considerations identified in reasonable
detail to the Facility Agent or (e) costs (including, without limitation,
any taxes, fees, charges, duties or expenses) which the Parent has demonstrated
to the Security Agent in reasonable detail would be likely to be incurred).

 

“A1 Australian Dollar
Reserve Amount” means, as at any determination date, an amount in
Australian Dollars equal to US$272,000 (calculated at the Spot Rate of Exchange
as at such date).

 

“A1 Australian Dollar
Tranche” has the meaning given to it in Clause 2.1(a)(i)(B) (Grant of the Facilities).

 

“A1 Belgian Euro Amount”
shall have the meaning given thereto in Clause 25.1(a) (Commitment Commission).

 

“A1 Borrowing Base”
means, as at any Calculation Date in relation to any A1 Borrower, an
aggregate amount equal to:

 

(a)                                  a
percentage (to be determined by the Mandated Lead Arrangers (acting reasonably)
and taking into account the tax, structuring and legal requirements of the
Group identified by the Parent in reasonable detail to the Mandated Lead
Arrangers), which determination shall consider, without limitation, the Asset
Report delivered on each Reporting Date on or prior to such Calculation Date
(as notified to the Coordinator)) of the Borrower Asset Value of such
A1 Borrower and provided that the Mandated Lead Arrangers (acting through 

 

2

 

the Facility Agent) will give notice to the Parent
on each Settlement Date of any change to the prevailing percentage that will
take effect on the second immediately succeeding Settlement Date;

 

(b)                                 87.5
per cent. of the Eligible Cash and the Eligible Cash Equivalents of such A1
Borrower (other than any Take-Out Borrower) (or, if such Borrower is a
Financeco, its Related Opco), in each case as at such Calculation Date; and

 

(c)                                  in
the case of any Advance under the A1 Australian Dollar Tranche or any A1
Swingline Advance made in Australian Dollars only, less the A1 Australian
Dollar Reserve Amount,

 

provided that the aggregate of the Euro Amount of
the A1 Borrowing Base of all of the A1 Borrowers shall not be less than the
Euro Amount of the Total A1 Borrowing Base as at such Calculation Date.

 

“A1 Canadian Dollar Tranche”
has the meaning given to it in Clause 2.1(a)(i)(C) (Grant of the Facilities).

 

“A1 Euro Tranche”
has the meaning given to it in Clause 2.1(a)(i)(E) (Grant of the Facilities).

 

“A1 Facility”
means the revolving credit facility made available under this Agreement as
described in Clause 2.1(a)(i) (Grant of the Facilities).

 

“A1 Italian Non-Guaranteed
Tranche” has the meaning given to it in Clause 2.1(a)(i)(F) (Grant of the Facilities).

 

“A1 Outstandings”
means all amounts outstanding from time to time under the A1 Facility
(including the A1 Swingline Facility).

 

“A1 Sterling Tranche”
has the meaning given to it in Clause 2.1(a)(i)(A) (Grant of the Facilities).

 

“A1 Swiss Franc Tranche”
has the meaning given to it in Clause 2.1(a)(i)(D) (Grant of the Facilities).

 

“A1 Tranches”
means the A1 Sterling Tranche, the A1 Australian Dollar Tranche, the A1
Canadian Dollar Tranche, the A1 Swiss Franc Tranche, the A1 Euro Tranche and
the A1 Italian Non-Guaranteed Tranche and “A1 Tranche”
means any one or more of them, as the context requires.

 

“A2 Advance Rate”
means:

 

(a)                                  if
neither the Final C Take-Out Financing nor any A Take-Out Financing has
occurred, 10 per cent.;

 

(b)                                 upon
the occurrence of the first A Take-Out Financing (x) 10 per cent. less (y) the
A Take-Out Adjustment Percentage multiplied by 12.5 per cent.;

 

3

 

(c)                                  upon
the occurrence of any further A Take-Out Financings (x) the A2 Advance
Rate at the previous Reporting date less (y) the A Take-Out Adjustment
Percentage multiplied by 12.5 per cent.,

 

provided that should the Final C Take-Out Financing
occur prior to the Final A Take-Out Financing, the A2 Advance Rate (at the
previous Reporting Date) shall be further reduced by the relevant Final C
Take-Out Benefit Percentage multiplied by 12.5 per cent. and provided, further,
that any adjustment in the A2 Advance Rate pursuant to the foregoing clauses (b) and
(c) shall be allocated among the remaining A2 Borrowers (except to the
extent such allocation would produce (after giving effect to any adjustments to
the percentage set forth in paragraph (a) of the definition of “A2 Borrowing Base”) (a) any violation of applicable
law, (b) liability of any of the officers, directors or shareholders of
such member or any of its holding companies or subsidiaries or any material
risk of such liability, (c) violation of the provisions of any joint
venture governing or binding on such person or its subsidiaries or holding
companies, (d) material adverse effects on the tax position (including,
without limitation, the imposition of any material withholding tax or the loss
of any material tax deduction) of the Group or, with respect to the Group,
structuring considerations identified in reasonable detail to the Facility
Agent or (e) costs (including, without limitation, any taxes, fees,
charges, duties or expenses) which the Parent has demonstrated to the Security
Agent in reasonable detail would be likely to be incurred) as the Coordinator
shall designate.

 

“A2 Australian Dollar
Tranche” has the meaning given to it in Clause 2.1(a)(ii)(B) (Grant of the Facilities).

 

“A2 Belgian Euro Amount”
shall have the meaning given thereto in Clause 25.1(a) (Commitment Commission).

 

“A2 Borrowing Base”
means as at any Calculation Date in relation to any A2 Borrower, an
aggregate amount equal:

 

(a)                                  to a
percentage (to be determined by the Mandated Lead Arrangers (acting reasonably)
and taking into account the tax, structuring and legal requirements of the
Group), which determination shall consider, without limitation, the Asset
Report delivered on each Reporting Date on or prior to such Calculation Date
(as notified to the Coordinator)) of the Borrower Asset Value of such
A2 Borrower and provided that the Mandated Lead Arrangers (acting through
the Facility Agent) will give notice on each Settlement Date of any change to
the prevailing percentage that will take effect on the second immediately
succeeding Settlement Date; and

 

(b)                                 12.5
per cent. of the Eligible Cash and the Eligible Cash Equivalents of such A2
Borrower (other than any Take-Out Borrower) (or, if such Borrower is a
Financeco, its Related Opco) in each case as at such Calculation Date,

 

provided that the aggregate of the Euro Amount of
the A2 Borrowing Base of all of the A2 Borrowers shall not be less than the
Euro Amount of the Total A2 Borrowing Base as at such Calculation Date.

 

4

 

“A2 Canadian Dollar Tranche”
has the meaning given to it in Clause 2.1(a)(ii)(C) (Grant of the Facilities).

 

“A2 Euro Tranche”
has the meaning given to it in Clause 2.1(a)(ii)(E) (Grant of the Facilities).

 

“A2 Facility”
means the second ranking revolving credit facility made available under this
Agreement as described in Clause 2.1(a)(ii) (Grant of the
Facilities).

 

“A2 Italian Non-Guaranteed
Tranche” has the meaning given to it in Clause 2.1(a)(ii)(F) (Grant of the Facilities).

 

“A2 Outstandings”
means all amounts outstanding from time to time under the A2 Facility
(including the A2 Swingline Facility).

 

“A2 Sterling Tranche”
has the meaning given to it in Clause 2.1(a)(ii)(A) (Grant of the Facilities).

 

“A2 Swiss Franc Tranche”
has the meaning given to it in Clause 2.1(a)(ii)(D) (Grant of the Facilities).

 

“A2 Tranches”
means the A2 Sterling Tranche, the A2 Australian Dollar Tranche, the A2
Canadian Dollar Tranche, the A2 Swiss Franc Tranche, the A2 Euro Tranche and
the A2 Italian Non-Guaranteed Tranche and “A2 Tranche”
means any one or more of them, as the context requires.

 

“ABS Terms”
means the Required Contractual Criteria (as such term is defined in Section 5.2
of the structure paper dated 1 November 2006 drafted by Gide Loyrette
Nouel and circulated to, amongst others, Hertz Corporation (and as may be
further modified, amended or waived with the written consent of the Arrangers,
the Coordinator and the Parent) (the “Structure Paper”)
which is applicable to the relevant Vehicle Buy-Back Agreement or Vehicle
Supply Agreement, as the case may be, provided that
for the purposes of this Agreement, there shall not be a requirement that the
Top Non-Investment Grade Manufacturer (as such term is defined in the Structure
Paper) provide an undertaking to pay the repurchase price to FleetCo (as such
term is defined in the Structure Paper) within two business days of the sale of
the relevant Vehicle (as such term is defined in the Structure Paper) to a
third party purchaser.

 

“A Facility”
means the A1 Facility and/or the A2 Facility, as the context may require.

 

“A Margin”
means, in relation to an A1 Advance (including any A1 Swingline Advance) or an
A2 Advance (including any A2 Swingline Advance) made to any Borrower, as
determined on the Relevant A Calculation Date, at any time on or after the
Closing Date, the aggregate of:

 

(a)                                  0.75
per cent. per annum (in the case of any A1 Advance) and 1.50 per cent. per
annum (in the case of any A2 Advance);

 

(b)                                 0.25
per cent. per annum multiplied by the ratio (calculated as a percentage) of (A) the
Net Book Value of such Borrower’s Core Country Fleet comprised of vehicles
manufactured by a Vehicle Manufacturer rated B or B- by S&P or B2 

 

5

 

or B3 by Moody’s (provided that if any Vehicle
Manufacturer has different ratings from the Rating Agencies, the lowest such
rating will apply) divided by (B) such Borrower’s Borrower Fleet NBV (in
this definition, the “B Rated Fleet Spread”);

 

(c)                                  0.75
per cent. per annum multiplied by the ratio (calculated as a percentage) of (A) the
Net Book Value of such Borrower’s Core Country Fleet comprised of vehicles
manufactured by a non-rated Vehicle Manufacturer or a Vehicle Manufacturer
rated below or equal to CCC+ by S&P or Caa1 by Moody’s (provided that if
any Vehicle Manufacturer has different ratings from the Rating Agencies, the
lowest such rating will apply (in this definition, the “C Rated Vehicles”)) to (B) such
Borrower’s Borrower Fleet NBV;

 

(d)                                 at
any time on and from the date on which the 25% Trigger occurs, 0.50 per
cent. per annum;

 

(e)                                  (i)            to the extent that such Borrower is
not a Belgian/Canadian  Borrower (as defined below) and:

 

(x)                                   from
and after 21 March 2007 (or, in the case of any such Borrower located,
organised or substantially conducts its business in Germany or owns all or any
part of the part of the German Core Country Fleet (the “German Borrowers”),
30 April 2007) up to but excluding 21 June, 2007 (or, in the case of any
German Borrower, 31 July 2007), the A Margin MOU Step-Up Percentage
applicable to such Borrower multiplied by the Step-Up Margin applicable to such
Borrower (solely in respect of an A1 Advance or A2 Advance made to such  Borrower), and

 

(y)                                 from
and after 21 June 2007 (or, in the case of any German Borrower, 31 July 2007)
up to but excluding 21 December 2007, the A Margin Contracts Step-Up
Percentage applicable to such Borrower multiplied by the Step-Up Margin
applicable to such Borrower (solely in respect of an A1 Advance or A2 Advance
made to such Borrower); or

 

(ii)                                  to
the extent that such Borrower is a Belgian/Canadian Borrower, from and after 21
March, 2007, the Step-Up Margin applicable to such Belgian/Canadian Borrower
(solely in respect of an A1 Advance or A2 Advance made to such Belgian/Canadian
Borrower); and

 

(f)                                    from
and after 21 December 2007, the Step-Up Margin applicable to such Borrower
(without duplication of preceding clause (e)(ii)).

 

“A Margin Contracts Step-Up
Percentage” means, in relation to a Borrower (and, in any event,
excluding any Belgian/Canadian Borrowers), a percentage, as determined on the
Relevant A Calculation Date, equal to the result of the following equation:

 

A multiplied by B

 

6

 

(a)                                  where
“A” equals 85% minus a percentage equal
to the result of the following fraction (expressed as a percentage): (x) the
aggregate number of Model Year 2007 Vehicles of such Borrower manufactured by
Vehicle Manufacturers or sold by Vehicles Dealers, as the case may be, who have
entered into a Qualified Vehicle Manufacturer/Dealer Contract, divided by (y) the
aggregate number of Model Year 2007 Vehicles of such Core Country Borrower’s
Core Country Fleet (provided that in no event shall the result of the foregoing
calculation result in a negative percentage); and

 

(b)                                 where
“B” equals a percentage equal to the
result of the following fraction (expressed as a percentage): (x) the
aggregate number of the Model Year 2007 Vehicles of such Core Country
Borrower’s Core Country Fleet divided by (y) the aggregate number of all
vehicles in the Core Country Fleet which are owned by such Core Country
Borrower.

 

“A Margin MOU Step-Up
Percentage” means, in relation to a Core Country Borrower (and, in
any event, excluding any Belgian Borrowers and Canadian Borrowers), a
percentage, as determined on the Relevant A Calculation Date, equal to the
result of the following equation:

 

A multiplied by B

 

(a)                                  where
“A” equals 85% minus a percentage equal
to the result of the following fraction (expressed as a percentage): (x) the
aggregate number of Model Year 2007 Vehicles of such Borrower manufactured by
Vehicle Manufacturers or sold by Vehicles Dealers, as the case may be, who have
entered into a Qualified Vehicle Manufacturer/Dealer MOU or a Qualified Vehicle
Manufacturer/Dealer Contract, divided by (y) the aggregate number of Model
Year 2007 Vehicles of such Core Country Borrower’s Core Country Fleet (provided
that in no event shall the result of the foregoing calculation result in a
negative percentage); and

 

(b)                                 where
“B” equals a percentage equal to the
result of the following fraction (expressed as a percentage): (x) the
aggregate number of the Model Year 2007 Vehicles of such Core Country
Borrower’s Core Country Fleet divided by (y) the aggregate number of all
vehicles in the Core Country Fleet which are owned by such Core Country
Borrower.

 

“A Swingline Facility”
means any A1 Swingline Facility and/or any A2 Swingline Facility, as the
context may require.

 

“A Take-Out Adjustment
Percentage” means when the A Take-Out Financing is not the Final A
Take-Out Financing the result (whether positive or negative, expressed as a
percentage) of the following equation:

 

A minus B divided by C

 

(a)                                  where
“A” equals the proceeds of the A
Take-Out Financing (less any Eligible Cash or Eligible Cash Equivalents);

 

7

 

(b)                                 where
“B” equals the Borrower Asset Value
transferred into the A Take-Out Financing multiplied sum of the A1 Advance Rate
and the A2 Advance Rate at the previous Reporting Date; and

 

(c)                                  where
“C” equals the sum of the Borrower Asset
Value of all A1 Borrowers and  A2
Borrowers (without duplication) as at the previous Reporting Date less the
Borrower Asset Value transferred into such A Take-Out Financing multiplied by
the sum of the A1 Advance Rate and the A2 Advance Rate as at the previous
Reporting Date,

 

provided that for the
purposes of calculating the above equation the following items shall be
excluded: (i) any VAT Receivables and (ii) any Vehicle which is
described in paragraph (b)(i) of the definition of Core Country
Fleet.

 

“A Take-Out Financing”
means any Take-Out Financing in relation to an A Facility.

 

“Accession Memorandum”
means a Borrower Accession Memorandum or a Guarantor Accession Memorandum, as
the case may be.

 

“Acquisition”
means the purchase by Holdco or its direct or indirect wholly owned
subsidiaries of the Shares pursuant to, and in accordance with, the Acquisition
Agreement.

 

“Acquisition Agreement”
means the stock purchase agreement dated 12 September 2005 between
the Seller and Holdco and relating to the purchase of the Shares by Holdco.

 

“Acquisition Costs”
means all costs, fees and expenses (and taxes thereon) and all capital, stamp,
documentary, registration or other taxes incurred by or on behalf of any Parent
Company or any of its affiliates, the Merrill Lynch Investors, the Carlyle
Investors or the CD&R Investors and their respective managers or advisors,
the Parent or any other member of the Group in connection with the Acquisition
and all related transactions (including, without limitation, the financing
thereof).

 

“Additional Borrower”
means:

 

(a)                                  when
designated “A1”, an Eligible Borrower which
has acceded to this Agreement as a Borrower under the A1 Facility pursuant to
Clause 38 (Additional Borrowers);

 

(b)                                 when
designated “A2”, an Eligible Borrower which
has acceded to this Agreement as a Borrower under the A2 Facility pursuant to
Clause 38 (Additional Borrowers);

 

(c)                                  when
designated “C”, an Eligible Borrower which has
acceded to this Agreement as a Borrower under the C Facility pursuant to
Clause 38 (Additional Borrowers); and

 

(d)                                 without
any such designation, an “A1 Additional Borrower”,
an “A2 Additional Borrower” and/or a “C Additional Borrower” as the context requires.

 

8

 

“Additional Guarantor”
means any person which has become an Additional Guarantor in accordance with
Clause 39 (Additional Guarantors, Resignation of
Guarantors and Designated Obligors; Change of Coordinator).

 

“Additional Obligor”
means an Additional Borrower or an Additional Guarantor.

 

“Advance”
means:

 

(a)                                  when
designated “A1”, the principal amount of each
advance made or to be made under the A1 Facility, as reduced from time to time
by repayment or prepayment;

 

(b)                                 when
designated “A1 Swingline”, the principal
amount of each advance made or to be made under the A1 Swingline Facility, as
reduced from time to time by repayment or prepayment;

 

(c)                                  when
designated “A2”, the principal amount of each
advance made or to be made under the A2 Facility, as reduced from time to time
by repayment or prepayment;

 

(d)                                 when
designated “A2 Swingline”, the principal
amount of each advance made or to be made under the A2 Swingline Facility, as
reduced from time to time by repayment or prepayment;

 

(e)                                  when
designated “C”, the principal amount of each
advance made or to be made under the C Facility, as reduced from time to time
by repayment or prepayment;

 

(f)                                    when
designated “C Swingline”, the principal amount
of each advance made or to be made under the C Swingline Facility, as reduced
from time to time by repayment or prepayment;

 

(g)                                 when
designated “Swingline”, an A1 Swingline
Advance, an A2 Swingline Advance and/or a C Swingline Advance, as the context
requires;

 

(h)                                 when
designated “Rollover”, (i) an Advance
(other than a Swingline Advance) which is used to refinance a maturing Advance
(other than a Swingline Advance) and which is in the same amount and the same
currency as such maturing Advance and is to be drawn on the day such maturing
Advance is to be repaid and (ii) a C Advance which is used to satisfy any
demand made by the Facility Agent pursuant to a drawing under a Letter of
Credit; and

 

(i)                                     without
any such designation, an “A1 Advance”, an “A1 Swingline Advance”, an “A2
Advance”, an “A2 Swingline Advance”, a “C Advance”, a “C Swingline
Advance”, a “Swingline Advance” and/or a “Rollover Advance”, as the context
requires.

 

“Affiliated Person”
means, as to any person, any other person (other than a subsidiary) which,
directly or indirectly, is in control of, is controlled by, or is under common
control with, such person.  For purposes
of this definition, “control” of a
person means the power, directly or indirectly, either to (a) vote 20% or
more of the 

 

9

 

securities having ordinary voting power for the
election of directors of such person or (b) direct or cause the direction
of the management and policies of such person, whether by contract or
otherwise.

 

“AFOF” means an
Australian venture capital fund of funds within the meaning of subsection
118-410(3) of the Australian Income Tax Assessment Act 1997.

 

“Amendment and Restatement
Agreement” means the amendment and restatement agreement which
amends and restates the provisions of this Agreement, dated on or about 21 March 2007
and made between inter alia the Parent, the
Obligors, Mandated Lead Arrangers, the Facility Agent, the Security Agent and
the Banks.

 

“Annual Budget”
means, in relation to a calendar year, the business plan for the Group
comprising a projected annual profit and loss account (including projected
turnover and operating costs) and projected EBITDA for such calendar year with
revenue broken down for each of the Core Countries in which the Group carries
on business.

 

“Antitrust/Regulatory
Authorities” means any Governmental Authority in the United States
of America competent to grant clearance for the Acquisition under the United
States Hart-Scott-Rodino Antitrust Improvements Act 1976, the European
Commission, the Canadian Competition Bureau and any Governmental Authority in
Australia competent to approve the Acquisition.

 

“Antitrust Regulatory
Clearances” means the approval, consent, waiver, licence, order,
registration, permit, authorisation or clearance of the Acquisition from all
Antitrust/Regulatory Authorities whose approval is required for the
Acquisition.

 

“Applicable Accounting
Principles” means generally accepted accounting principles in the
United States of America and related practices.

 

“Applicable Margin”
means:

 

(a)                                  in
relation to any A Facility (including the A1 Swingline Facility and the
A2 Swingline Facility), the A Margin; and

 

(b)                                 in
relation to the C Facility (including the C Swingline Facility), 2.50 per cent.
per annum.

 

“Appraiser”
means the Initial Collateralisation Appraiser or, if the Facility Agent has
consented thereto in writing (such consent not to be unreasonably withheld or
delayed), a New Collateralisation Appraiser.

 

“Arrangers”
means the Mandated Lead Arrangers and the Co-Arranger and “Arranger”
means any of them.

 

“Asset Report”
means (a) in the case of all A Advances (other than Swingline Advances), a
duly completed report in the form set out in Part A of Part 1 of
Schedule 21 (Forms of Asset Reports), (b) in
the case of all C Advances (other than Swingline Advances), a duly completed
report in the form set out in Part B of Part 1 of Schedule 21 (Forms of Asset Reports), (c) in the case of all A
Swingline Advances, a duly completed report in the form set out in Part A
of Part 2 of Schedule 21 (Forms 

 

10

 

of Asset Reports), (d) in
the case of all C Swingline Advances, a duly completed report in the form set
out in Part B of Part 2 of Schedule 22 (Forms of
Asset Reports) and (e) in the case of a Letter of Credit, a
duly completed report in the form set out in Part 3 of Schedule 21 (Forms of Asset Reports), in each case as the same may be
modified from time to time with the consent of the Facility Agent (acting
reasonably).

 

“Auditors” means
one of PricewaterhouseCoopers, Ernst & Young, KPMG or Deloitte &
Touche or such other auditors acceptable to the Facility Agent (acting
reasonably).

 

“Australian Bill”
means a bill of exchange as defined in the Australian Bills of Exchange Act
1909 (Cth).

 

“Australian Borrower”
means either:

 

(a)                                  a
Borrower that is an Australian resident for Australian tax purposes (unless it
incurs interest under this Agreement wholly in carrying on business in a
country outside Australia at or through a permanent establishment in that
country); or

 

(b)                                 a
Borrower that is not an Australian resident for Australian tax purposes that
incurs interest under this Agreement in carrying on business in Australia at or
through a permanent establishment in Australia.

 

“Australian
Finance Documents” means each of the following documents:

 

(a)                                  the
Australian Subscription Deed;

 

(b)                                 the
document entitled “Australian Issuer Loan Agreement (Project H)” between Noteco
(as lender) and Hertz Australia Pty. Limited (ABN 31 004 407 087) (as
borrower) dated on or before the Closing Date;

 

(c)                                  the
Australian Purchase Deed;

 

(d)                                 the
document entitled “Australian Registry Services Agreement (Project H)” between
Noteco (as issuer), HA Funding Pty Limited (ACN 117 549 498) (as
subscriber) and Perpetual Trustee Company Limited (as registrar) dated on or
before the Closing Date;

 

(e)                                  the
Australian Security Trust Deed; and

 

(f)                                    the
document entitled “Australian Loan Note Deed Poll (Project H)” given by Noteco
(as issuer) dated on or before the Closing Date.

 

“Australian Obligor”
means each of Hertz Investment (Holdings) Pty. Limited (ACN 006 181 755),
Hertz Australia Pty. Limited and Noteco.

 

“Australian Orphan SPV”
means HA Funding Pty Limited (ACN 117 549 498).

 

“Australian Orphan SPV
Secured Property” has the same meaning as in the Australian Security
Trust Deed.

 

11

 

“Australian Purchase Deed”
means the document entitled “Australian Purchase Deed (Project H)” between
Hertz Australia Pty Limited (as purchaser) and HA Funding Pty Limited (as
seller) dated on or before the Closing Date.

 

“Australian Reference Bank”
means each of Australian and New Zealand Banking Group Limited, Commonwealth
Bank of Australia, National Australian Bank Limited and Westpac Banking
Corporation Limited.

 

“Australian Security Trust
Deed” means the document entitled “Australian Security Trust Deed
(Project H)” between HA Funding Pty Limited (as borrower) and the Security
Agent dated on or before the Closing Date.

 

“Australian Subscription
Deed” means the document entitled “Australian Subscription Deed
(Project H)” between HA Funding Pty Limited (as subscriber) and Noteco (as
issuer) dated on or before the Closing Date.

 

“Authorised Risk Vehicle
Percentage” means, in relation to the A1 Borrowers and the A2
Borrowers taken together (a) 40 per cent. and (b) on and from the
date on which the 25% Trigger occurs, such other percentage as may be
reasonably agreed in good faith between the Coordinator and the Mandated Lead
Arrangers taking into account applicable commercial considerations at such
time.

 

“Authorised Signatory”
means, in relation to an Obligor or proposed Obligor, any person who is duly
authorised (in such manner as may be reasonably acceptable to the Facility
Agent) and in respect of whom the Facility Agent has received a certificate
signed by a director or another Authorised Signatory of such Obligor or
proposed Obligor setting out the name and signature of such person and
confirming such person’s authority to act.

 

“Availability Period”
means the period from and including the Closing Date to and including the Final
Maturity Date.

 

“Available Commitment”
means in relation to a Bank and a Facility or a Tranche at any time and, save
as otherwise provided herein, its Commitment in the relevant Base Currency in
relation to that Facility or Tranche at such time less its share of the Base
Currency Amount of the Advances or Letters of Credit made under that Facility
or Tranche which are then outstanding provided such amount shall not be less
than zero.

 

“Available Facility”
means, at any time in relation to a Facility or a Tranche, the aggregate Available
Commitments in relation to that Facility or Tranche adjusted, in the case of
any proposed utilisation, so as to take into account:

 

(a)                                  any
reduction in the Commitment of a Bank in relation to that Facility or Tranche
pursuant to the terms hereof;

 

(b)                                 the
Base Currency Amount of any Advance or Letter of Credit which, pursuant to any
other utilisation, is to be made or issued under that Facility or Tranche; and

 

(c)                                  the
Base Currency Amount of any Advance or Letter of Credit under that Facility or
Tranche which is due to be repaid,

 

12

 

in each case on or before
the proposed Utilisation Date relating to such utilisation.

 

“B Advance Rate”
means:

 

(a)                                  if
neither the Final A Take-Out Financing nor the Final C Take-Out Financing has
occurred, 80 per cent.;

 

(b)                                 if
the Final A Take-Out Financing occurs following the Final C Take-Out Financing,
(x) the B Advance Rate at the previous Reporting Date less (y) the
relevant Final A Take-Out Benefit Percentage,

 

provided, that if the Final C Take-Out Financing
occurs following the Final A Take-Out Financing, the B Advance Rate (at the
previous Reporting Date) shall be reduced by the Final C Take-Out Benefit
Percentage.

 

“B Borrower” has
the meaning given to “Borrower” in each of the B Bridge Facilities Agreements.

 

“B Bridge Facilities
Agreements” means the Brazilian Facilities Agreement and the NZ
Facilities Agreement.

 

“B Bridge Finance Documents”
means each of the B Bridge Facilities Agreements and each of the B Bridge
Guarantees, together with all other Finance Documents (as such term is defined
in each of the B Bridge Facilities Agreements) from time to time.

 

“B Bridge Guarantees”
means the Brazilian Guarantee and the NZ Guarantee.

 

“BA Rate” means,
in respect of any Term applicable to a Canadian Advance (other than a Canadian
Swingline Advance) or Unpaid Sum (other than a Canadian Swingline Advance)
denominated in Canadian Dollars:

 

(a)                                  the
applicable Screen Rate;

 

(b)                                 if
such Term is less than a month, the percentage rate per annum obtained by
interpolating the applicable Screen Rates for a period of one month and, to the
extent available, the applicable Screen Rates for periods of less than one
month;

 

(c)                                  if
such Term is more than a month, the percentage rate per annum obtained by
interpolating the applicable Screen Rates for a period of (i) the greatest
integral number of months ending on or before then end of the Term and (ii) the
integral number of months determined under preceding clause (i) plus one;
or (d) if the applicable Screen Rate in relation to the BA Rate is not
displayed for Canadian Dollars for such Term, the rate of interest determined
by the Canadian Permitted Bank that is equal to the arithmetic mean (rounded
upwards to the nearest whole multiple of 1/100th of 1 per cent.) of the rates
quoted by the relevant Reference Banks on the Quotation Date in respect of
Canadian Dollar bankers’ acceptances with a term comparable to such Term,

 

and, in each case, plus 5 basis points per annum if
such Canadian Advance is made by a Bank not listed in Schedule I to the
Bank Act (Canada), provided no adjustment shall be made to account for the
difference between the number of days in a year on

 

13

 

which the rates referred to in this definition are
based and the number of days in a year on the basis of which interest is
calculated in this Agreement.

 

“BA Rate Loan”
means an Advance (other than a Swingline Advance) denominated in Canadian
Dollars which bears interest at the BA Rate.

 

“BBSY” means, in
respect of any Term applicable to an Advance or unpaid sum denominated in
Australian Dollars:

 

(a)                                  the
applicable Screen Rate;

 

(b)                                 if
such Term is less than a month, the applicable Screen Rate for a period of one
month;

 

(c)                                  if
such Term is more than a month, the percentage rate per annum obtained by
interpolating the applicable Screen Rates for a period of (i) one month
and (ii) two months; or

 

(d)                                 if
the applicable Screen Rate is not displayed for Australian Dollars for such
Term, the rate of interest determined by the Facility Agent as the average of
the rates quoted to the Facility Agent by each of the relevant Reference Banks
for the purchase of Australian Bills accepted by each of the relevant Reference
Banks which have a tenor equal to such Term and a face value amount equal to
the amount of the Advance,

 

provided that if, in respect of such Term, the BBSY
cannot be determined in accordance with the foregoing, BBSY shall be the rate
per cent. per annum determined by the Facility Agent in good faith to be the
appropriate rate having regard to comparable indices then available in the then
current bill market.

 

“Bank” means any
entity (whether or not such entity is a registered bank):

 

(a)                                  named
in Schedule 1 (The Banks and their
Commitments) (including unless the context otherwise requires a
Swingline Bank); or

 

(b)                                 which
has become a party hereto in accordance with Clause 36.5 (Assignments by Banks) or Clause 36.6 (Transfers by Banks),

 

and which has not ceased to be a party hereto in
accordance with the terms hereof.

 

“Base Currency”
means, in relation to any Facility or Tranche, the currency in which such
Facility or Tranche is denominated as set out in Schedule 1 (The Banks and their Commitments).

 

“Base Currency Amount”
means:

 

(a)                                  in
relation to an Advance or Letter of Credit denominated in the Base Currency of
the relevant Facility or Tranche, the amount of such Advance or Letter of
Credit; and

 

(b)                                 in
relation to an Advance or Letter of Credit denominated in Euro where Euro is
not the Base Currency of the relevant Facility or Tranche, the equivalent of

 

14

 

the amount of Euro in the relevant Base Currency
calculated at the Spot Rate of Exchange as at the relevant date of
determination.

 

“Belgian Borrower”
means each Borrower having or deemed to have its fiscal residency in Belgium
for the purposes of the Belgian Corporate Income Tax Code that is a qualifying
professional investor as defined in article 105,3o of the Royal
Decree executing the Belgian Corporate Income Tax Code.

 

“Belgian/Canadian Take-Out
Financing” means in relation to the (i) Belgian Borrowers, any
Take-Out Financing and/or third party refinancing in whole (but not part) of
the Belgian Euro Amounts and/or (ii) Canadian Borrowers, any Take-Out
Financing and/or third party refinancing in whole (but not part) of the
Canadian Advances.

 

“Belgian Euro Amounts”
means the A1 Belgian Euro Amount and the A2 Belgian Euro Amount.

 

“Belgian/Canadian Borrower”
means any Borrower which has its jurisdiction of incorporation or substantially
conducts its business in Belgium or Canada or owns all or any part of the part
of the Canadian and/or Belgian Core Country Fleet.

 

“Borrower”
means:

 

(a)                                  when
designated “A1”, any Original Borrower under
the A1 Facility or any Additional A1 Borrower;

 

(b)                                 when
designated “A2”, any Original Borrower under
the A2 Facility or any Additional A2 Borrower;

 

(c)                                  when
designated “C”, any Original Borrower under
the C Facility or any Additional C Borrower;

 

(d)                                 without
any such designation, an “A1 Borrower”,
an “A2 Borrower” and/or a “C Borrower”, as the context requires; and

 

(e)                                  when
designated “Core Country”, any  Borrower  which has its
jurisdiction of incorporation in a Core Country,

 

provided in each case that such Borrower has not
been released from its rights and obligations hereunder in accordance with
Clause 38.4 (Resignation of a Borrower).

 

“Borrower Accession
Memorandum” means a duly completed memorandum substantially in the
form set out in Schedule 6 (Form of Borrower
Accession Memorandum).

 

“Borrower Asset Value”
means as at any Calculation Date:

 

(a)                                  in
relation to any A1 Borrower or any A2 Borrower (other than a Financeco),
determined on that Calculation Date and, without double-counting, the aggregate
of:

 

(i)            the
Borrower Fleet NBV of such Borrower; and

 

15

 

(ii)           the
Eligible Receivables of such Borrower;

 

(b)                                 in
relation to any A1 Borrower or A2 Borrower that is a Financeco, determined on
that Calculation Date and, without double-counting, the aggregate of:

 

(i)            the
Borrower Fleet NBV of its Related Opco; and

 

(ii)           the
Eligible Receivables of its Related Opco;

 

(c)                                  in
relation to any C Borrower (other than a Financeco), determined on that
Calculation Date and, without double-counting, the aggregate of:

 

(i)            the
Borrower Equipment NBV of such Borrower; and

 

(ii)           the
Eligible Receivables of such Borrower; and

 

(d)                                 in
relation to any C Borrower that is a Financeco, determined on that Calculation
Date and, without double-counting, the aggregate of:

 

(i)            the
Borrower Equipment NBV of its Related Opco; and

 

(ii)           the
Eligible Receivables of its Related Opco,

 

and provided in each case:

 

(A)                              once
an SPV (other than a Financeco) satisfies the criteria to and becomes an
Eligible Borrower, no subsequent additions to its Related Opco’s Core Country
Fleet or Core Country Equipment Assets (as the case may be) or Eligible
Receivables (other than Eligible Receivables which subsequently arise with respect
to the Core Country Fleet or Core Country Equipment Assets of such Opco
existing on the day on which such SPV becomes an Eligible Borrower) after the
day on which such SPV becomes an Eligible Borrower shall be taken into account
in determining such SPV’s Borrower Asset Value;

 

(B)                                on
and after any Take-Out Financing, the Borrower Asset Value of any relevant
Borrower shall be reduced by the value of any assets that were the subject of
such Take-Out Financing if and to the extent such assets were included in the
calculation of such Borrower’s Borrower Asset Value immediately prior to such
Take-Out Financing;

 

(C)                                without
including any vehicles or Equipment which are subject to any Encumbrance
securing Indebtedness for Borrowed Money (other than pursuant to the Security
Documents) incurred by any member of the Group to finance or refinance the
acquisition of such vehicles or Equipment,

 

and provided further that in the case of
paragraphs (b) and (d) above:

 

(I)                                    any
Spanish vehicles owned by such Borrower’s Related Opco shall not be required to
be subject to a Designated Obligor Charge and/or Designated Obligor Re-Charge;
and

 

16

 

(II)                                if
the proceeds of any Advances made to such Financeco have been on-lent to its
Related Opco pursuant to Clause 21.24 (On-Lending), to
the extent any asset described in paragraphs (b)(i) and (ii) above
or (d)(i) and (ii) above (as the case may be) is not subject to a
Designated Obligor Charge and/or a Designated Obligor Re-Charge no later than
90 days after the Closing Date, in the case of the Initial Borrowing, or,
otherwise, the date on which such proceeds were on-lent, the aggregate amount
pursuant to paragraphs (b) and (d) above shall be determined
without reference to any such asset.

 

“Borrower Equipment Market
Value” means, in relation to any C Borrower, the market value of its
Core Country Equipment Assets as calculated within 90 days of the Closing Date
and on each Collateralisation Test Date, in each case by the Appraiser.

 

“Borrower Equipment NBV”
means, in relation to any C Borrower and in respect of a Calculation Date, the
Net Book Value of the Core Country Equipment Assets of such Borrower (or, if
such Borrower is a Financeco, the Net Book Value of the Core Country Equipment
Assets of the Related Opco) at such time, as determined on such Calculation
Date.

 

“Borrower Fleet NBV”
means, in relation to any A1 Borrower or A2 Borrower in respect of a
Calculation Date, the Net Book Value of the Core Country Fleet of such Borrower
(or, if such Borrower is a Financeco, the Net Book Value of the Core Country
Fleet of its Related Opco) as determined on such Calculation Date, provided
that to the extent a Vehicle Manufacturer Event of Default occurs and is then
continuing with respect to the Vehicle Manufacturer of any vehicle included in
such Core Country Fleet, for the purposes of calculating the Total A1 Borrowing
Base or the Total A2 Borrowing Base (as the case may be), the Euro Amount of
the Net Book Value of all vehicles manufactured by such Vehicle Manufacturer
shall be determined by multiplying (a) the Euro Amount of the Net Book
Value of such vehicles, (b) the A1 Advance Rate in the case of any A1
Borrower or the A2 Advance Rate in the case of any A2 Borrower and (c) the
following fraction (which shall not, at any time, exceed 1):

 

X

Y

 

where:

 

X                                       is
the aggregate amount of the Euro Amount of the sale proceeds received by all A1
Borrowers or A2 Borrowers (as the case may be) (or, if any such Borrower is a
Financeco, its Related Opco) from the sale of vehicles manufactured by such
Vehicle Manufacturer in the most recently ended calendar month; and

 

Y                                        is
the aggregate of the Euro Amount of the Net Book Value of such sold vehicles as
such value was determined and included in the calculation of the relevant
Borrower Fleet NBV on the immediately preceding Calculation Date.

 

17

 

“Borrowing Base
Calculations” means the calculations to be made pursuant to
Clause 4.1(n) (Utilisation Conditions)
and Clause 5.3(a)(vi) (Completion of a
Utilisation Notice for Swingline Advances).

 

“Brazilian Facilities
Agreement” means an Agreement for Offering a Revolving Credit
Facility to be entered into on or around 21 December 2005 between, amongst
others, Car Rental Systems Do Brasil Locação De Veículos Ltda, as the Borrower,
Banco BNP Paribas Brasil S.A., as Administrative Agent and the entities named
therein as Banks.

 

“Brazilian Guarantee”
means the guarantee to be entered into on or around 21 December 2005
by The Hertz Corporation in relation to the Brazilian Facilities Agreement.

 

“Brazilian Overdraft
Facility” means any local overdraft or working capital facility or
facilities denominated in Brazilian Real incurred by Care Rental Systems Do
Brazil Locação De Veículos Ltda, provided, that no other member of the
Group shall guarantee any Indebtedness under such facility.

 

“Brazilian Overdraft
Maximum Amount” means an aggregate amount of R$10,000,000.

 

“Bridge  Fee Letter” means the letter entitled “International
Securitisation Bridge Fee Letter” dated 18 November 2005 between Holdco
and the Arrangers and as amended and restated on or about 21 March 2007.

 

“Business Day”
means a day (other than a Saturday or a Sunday) (a) on which banks
generally are open for business in London and in the jurisdiction of
organisation of each of the Borrowers and the Coordinator and the principal
financial centre of the country of each Designated Currency other than Euro and
(b) which is a TARGET Day.

 

“Buy-Back Agreement”
means a Vehicle Manufacturer Buy-Back Agreement, a Vehicle Dealer Buy-Back
Agreement or an Equipment Manufacturer Buy-Back Agreement.

 

“C Advance Rate” means a percentage equal
to:

 

(a)           at
any time prior to the first Collateralisation Test Date:

 

(i)            if no C Take Out Financing
has occurred, 80%;

 

(ii)           upon the occurrence of the
first C Take Out Financing, (x) 80% less (y) the C Take Out
Adjustment Percentage;

 

(iii)          upon the occurrence of any
further C Take Out Financings, (x) the C Advance Rate at the previous Reporting
Date less (y) the C Take Out Adjustment Percentage,

 

provided that should the
Final A Take-Out Financing occur prior to the Final C Take-Out Financing, the C
Advance Rate (as at the previous Reporting Date) shall be further reduced by
the Final A Take-Out Benefit Percentage and

 

18

 

provided, further, that any adjustment in the C
Advance Rate pursuant to the foregoing paragraphs (ii) and (iii) shall
be allocated among the remaining C Borrowers (except to the extent such
allocation would produce (after giving effect to any adjustments to the
percentage set forth in paragraph (a) of the definition of “C Borrowing Base”) (a) any violation of applicable law,
(b) liability of any of the officers, directors or shareholders of such
member or any of its holding companies or subsidiaries or any material risk of
such liability, (c) violation of the provisions of any joint venture
governing or binding on such person or its subsidiaries or holding companies, (d) material
adverse effects on the tax position (including, without limitation, the
imposition of any material withholding tax or the loss of any material tax
deduction) of the Group or, with respect to the Group, structuring
considerations identified in reasonable detail to the Facility Agent or (e) costs
(including, without limitation, any taxes, fees, charges, duties or expenses)
which the Parent has demonstrated to the Security Agent in reasonable detail
would be likely to be incurred).

 

(b)                                 at
any time from and including the first Collateralisation Test Date to the Final
Maturity Date:

 

(i)                                     if
the Collateralisation Ratio, as determined by the Appraiser on the immediately
preceding Collateralisation Test Date (the “Test Date”)
is greater than or equal to 78%, 80%;

 

(ii)                                  if
the Collateralisation Ratio, as determined by the Appraiser on the Test Date is
less than 78% and:

 

(x)                                   the
Coordinator shall have appointed a New Collateralisation Appraiser,  80% less an amount (expressed as a
percentage) equal to the difference (if positive) between (x) 78% and (y) the
higher of (A) the Collateralisation Ratio as determined by the Initial
Collateralisation Appraiser on the Test Date and (B) the Collateralisation
Ratio as determined by the New Collateralisation Appraiser on the Test Date; or

 

(y)                                 the
Coordinator shall not have appointed a New Collateralisation Appraiser, 80%
less an amount (expressed as a percentage) equal to the difference (if
positive) between (x) 78% and (y) the Collateralisation Ratio as
determined by the Initial Collateralisation Appraiser on the Test Date.

 

“C Borrowing
Base” means, in relation to any C Borrower and as at any Calculation
Date, an aggregate amount equal to:

 

(a)                                  the
C Advance Rate, multiplied by the Borrower Asset Value of such C Borrower,
as at such Calculation Date; and

 

(b)                                 100
per cent. of the Eligible Cash and Eligible Cash Equivalents of such
C Borrower (other than any Take-Out Borrower) (or, if such Borrower is a
Financeco, its Related Opco) provided such C Borrower is not also an A1 Borrower
or an A2 Borrower on such Calculation Date.

 

19

 

“C Facility”
means the revolving credit facility made available under this Agreement as
described in Clause 2.1(a)(iii) (Grant of the Facilities).

 

“C Outstandings”
means all amounts outstanding from time to time under the C Facility
(including the C Swingline Facility and all Letters of Credit that are issued
and outstanding).

 

“C Take-Out Adjustment Percentage”
means when the C Take-Out Financing is not the Final C Take-Out Financing the
result (whether positive or negative, expressed as a percentage) of the
following equation:

 

A minus B divided by C

 

(a)                                  where
“A” equals the proceeds of the C
Take-Out Financing (less any Eligible Cash or Eligible Cash Equivalents)

 

(b)                                 where
“B” equals the Borrower Asset Value
transferred into the C Take-Out Financing multiplied by the C Advance Rate at
the previous Reporting Date; and

 

(c)                                  where
“C” is the Borrower Asset Value of all C
Borrowers as at the previous Reporting Date less the Borrower Asset Value
transferred into such C Take-Out Financing multiplied by the C Advance Rate as
at the previous Reporting Date.

 

“C Take-Out Financing”
means any Take-Out Financing in relation to the C Facility.

 

“Calculation
Date” means:

 

(a)                                  a
First Calculation Date or a Second Calculation Date; and

 

(b)                                 in
the case of an A Facility, the Optional A Calculation Date.

 

“Canadian
Advance” means any Advance made to a Canadian Borrower.

 

“Canadian Borrower”
means Hertz Canada Limited and any other Borrower that is (a) resident or
deemed to be resident in Canada for the purposes of the Income Tax Act
(Canada), (b) a partnership that is a “Canadian partnership” within the
meaning of the Income Tax Act (Canada) or (c) deemed to be resident in
Canada for the purposes of Part XIII of the Income Tax Act (Canada) in
respect of any payments made by such Borrower in relation to this Agreement.

 

“Canadian Guarantor”
means, subject to Clause 0 (Canadian Guarantor),
Hertz Canada Limited and any other Canadian Entity becoming an Additional
Guarantor.

 

“Canadian Outstandings”
means all amounts outstanding under this Agreement from time to time in
relation to all Canadian Advances (including the Canadian Swingline Advances).

 

20

 

“Canadian Permitted Bank”
means each of BNP Paribas (Canada) and any replacement Bank appointed pursuant
to Clause 4.8(d) (Canadian Advances),
in each case acting through its Facility Office in Canada.

 

“Canadian Pro-Rata Share”
means, in relation to a Non-Canadian Bank in respect of any Facility (or, in
the case of any A Facility, the relevant Tranche), the percentage set forth in
respect of such Non-Canadian Bank and relevant Facility or Tranche (as the case
may be) in Schedule 17 (Canadian Pro-Rata Share).

 

“Canadian Reorganisation”
means the following transactions, to occur following the Acquisition on the
Closing Date:

 

(a)                                  the
sale by Hertz Holdings Netherlands B.V. (“Hertz NL B.V.”)
of common shares (“Hertz Canada Common shares”)
of Hertz Canada Limited (“Hertz Canada”)
to the Target, in consideration for which the Target shall deliver to Hertz NL
B.V. a note issued by the Target and payable on demand in the principal amount
of approximately $490,000,000 (the “Hertz Note”);

 

(b)                                 the
distribution by the Target of the Hertz Canada Common Shares and the preferred
shares of Hertz Canada held by the Target (together with the Hertz Canada
Common Shares, the “Hertz Canada Shares”)
as a dividend to CCMG Investor LLC, a Subsidiary of Acquisition Corp. and the
sole stockholder of the Target immediately following the Acquisition;

 

(c)                                  the
sale by Acquisition Corp. of Class B Common Shares of CCMG Investor LLC to
CCMG Investor LLC for redemption, in consideration for which CCMG Investor LLC
shall sell to Acquisition Corp. common stock of the Target (the “Hertz Shares”), representing all of the then issued and
outstanding shares of the Target’s Capital Stock;

 

(d)                                 the
dissolution, winding-up and termination of CCMG Investor LLC, in connection
with which the Hertz Canada Shares shall be transferred and assigned to CMGC
Canada Acquisition ULC (“CMGC Canada”);

 

(e)                                  the
sale of common shares of CMGC Canada (the “CMGC Canada Shares”),
representing all of the issued and outstanding shares of CMGC Canada’s Capital
Stock, to the Target as a contribution;

 

(f)                                    the
merger of CCMG Acquisition Corp. with and into the Target;

 

(g)                                 the
sale by the Target of the CMGC Canada Shares to Hertz International Ltd., in
consideration for which Hertz International Ltd. will enter into an agreement
with the Target, Hertz International Ltd. and Hertz NL B.V. pursuant to which
the Target will be released from its obligations under the Hertz Note, which
shall be cancelled, and the Parent shall issue a new note (the “HIL Note”) to Hertz NL B.V. for the same principal amount
and otherwise containing substantially similar terms and conditions;

 

(h)                                 the
sale by the Parent of the CMGC Canada Shares to Hertz NL B.V. in full
satisfaction of Hertz International Ltd.’s obligations under the HIL Note,
which shall be cancelled;

 

21

 

(i)                                     the
subscription by CMGC Canada for common shares (the “Newco
(Canada) Shares”) of 1677932 Ontario Limited, an Ontario
corporation, representing all of the issued and outstanding shares of Newco
(Canada) Capital Stock, in consideration for which CMGC Canada shall sell,
transfer and assign to Newco (Canada) the Hertz Canada Shares;

 

(j)                                     the
amalgamation of Newco (Canada) and Hertz Canada, whereupon the amalgamated
entity shall continue under the name Hertz Canada Limited (“Hertz Canada Amalco”);

 

(k)                                  the
exchange by Hertz Canada Amalco of its common shares in Matthews Equipment Ltd.
for preferred shares of Matthews Equipment Ltd. of equal value, and the subscription
by CCMG HERC Sub, Inc., a Wholly-Owned Subsidiary of HERC, for common
shares of Matthews Equipment Ltd.; and

 

(l)                                     all
transactions relating thereto.

 

“Canadian Revolving Sale
Right” has the meaning set out in Clause 4.8(b) (Canadian Advances).

 

“Canadian Sale Right”
means, in respect of a Facility (or, in the case of any A Facility, the
relevant Tranche), a Canadian Revolving Sale Right or Canadian Swingline Sale
Right in relation to such Facility or Tranche (as the case may be).

 

“Canadian Sale-Saleback
Transaction” means a sale and conditional saleback arrangement,
between Hertz Canada Limited (or any other Canadian Borrower) and an SPV,
consummated to effect a Take-Out Financing with respect to Hertz Canada Limited
and which provides for the conditional purchase by Hertz Canada Limited (or any
other Canadian Borrower) of personal property from such SPV.

 

“Canadian Swingline Advance”
means any Swingline Advance denominated in Canadian Dollars made to a Canadian
Borrower.

 

“Canadian Swingline Rate”
means, in respect of any Term applicable to a Canadian Swingline Advance, the
rate offered by the Canadian Permitted Bank (as notified to the Facility Agent)
for deposits in such currency for such Term or, if there is more than one
Canadian Permitted Bank, the weighted average of the quotations offered by each
Canadian Permitted Bank (as notified to the Facility Agent) for deposits in
such currency for such Term (weighted in proportion to the percentage
participation of such Canadian Permitted Bank in such Swingline Advance)
pursuant to Clause 10.2(b) (Interest Rate
Determination).

 

“Canadian Swingline Sale
Right” has the meaning set out in Clause 5.4(e) (Swingline Banks’ Participation).

 

“Capital
Expenditure” means, with respect to any person for any period, the
sum of the aggregate of all expenditures by such person and its consolidated
subsidiaries during such period for property, plant, equipment and revenue
earning equipment which, in accordance with the Applicable Accounting
Principles (extant as at the date of this Agreement), are or should be included
in “capital expenditures”, net of (a) the application of insurance monies
in the reinstatement or repair of assets in respect of

 

22

 

which such insurance monies
were attained, (b) expenditure on (i) Reinvested Amounts and (ii) the
amount invested in Permitted Acquisitions or Permitted Investments and (c) Net
Cash Proceeds of dispositions of property, plant, equipment and revenue earning
equipment during such period.

 

“Capital Stock”
means any and all shares, interests, participations or other equivalents
(however designated) of capital stock of a corporation, any and all equivalent
ownership interests in a person (other than a corporation) and any and all warrants
or options to purchase any of the foregoing.

 

“Capitalised
Cost” means:

 

(a)           with respect to each vehicle
purchased by a Borrower (or, if such Borrower is a Financeco, its Related
Opco), the price paid for such vehicle to the Vehicle Dealer, Vehicle Manufacturer
or other person selling such vehicle (including profit and delivery charges but
excluding taxes and any registration or titling fees unless capitalised by the
relevant Borrower in accordance with past practices), less any rebates, credits
or similar incentives received or receivable in respect of such vehicle to the
extent applied by the relevant Borrower in accordance with its past practice to
reduce the capitalised cost of such vehicle; and

 

(b)           with respect to Equipment
purchased by a Borrower (or, if such Borrower is a Financeco, its Related
Opco), the price paid for such Equipment to the Vehicle Manufacturer or other
person selling such Equipment (including profit and delivery charges but
excluding taxes and any registration or titling fees), less any rebates,
credits or similar incentives received or receivable in respect of such
Equipment to the extent applied by the relevant Borrower in accordance with its
past practice to reduce the capitalised cost of such Equipment.

 

“Carlyle” means
TC Group L.L.C. (which operates under the trade name The Carlyle Group).

 

“Carlyle Investors”
means collectively (a) Carlyle Partners IV, L.P., a Delaware limited
partnership, (b) CEP II Participations S.àr.l., a Luxembourg limited
liability company, (c) CP IV Co-investment, L.P., a Delaware limited
partnership, (d) CEPII U.S. Investments, L.P., a Delaware limited
partnership, (e) any Affiliated Person of any of the foregoing and (f) any
successor in interest to any of the foregoing.

 

“Carve Out Period”
means the period:

 

(a)           starting
on the later of:

 

(i)            the
first anniversary date of the first utilisation of any A Facility; and

 

(ii)           the date occurring three
months after the date of any Securities Demand (which shall, in any event, be
no later than the date occurring fifteen months after the Closing Date); and

 

(b)           ending
on the 90th calendar day thereafter.

 

23

 

“Cash
Collateral” means, in relation to any Letter of Credit or L/C
Proportion of a Letter of Credit, a Euro deposit in such interest-bearing
account or accounts as the Facility Agent may, acting reasonably, specify (from
time to time), such Euro deposit and account or accounts to be secured in
favour of, and on terms and conditions reasonably acceptable to, the Security
Agent or the relevant L/C Issuer, as the case may be.

 

“Cash Equivalents”
means investments in:

 

(a)                                  marketable
obligations of or guaranteed or insured by (i) the United Kingdom, the
United States of America, France, Germany, Australia, Canada or Canadian
provinces, (ii) any other European Union member state in which the Group
has operations, (iii) any country in whose currency funds are being held
specifically pending application in the making of an investment or Capital
Expenditure by the Group in that country with such funds, (iv) any other
country being a country having one of the two highest rating categories
obtainable from any Rating Agency, or (v) an agency or instrumentality of
any thereof;

 

(b)                                 time
deposits, certificates of deposit, notes and acceptances issued by (i) banks
which are authorised persons with permission to accept deposits under the
Financial Services and Markets Act 2000 or by building societies under the
Building Societies Act 1986, (ii) banks or institutions authorised to
operate as banks that are Finance Parties or (iii) by authorised
deposit-taking institutions or institutions authorised to operate as banks in
any of the countries referred to in paragraph (a) above, having
capital and surplus in excess of $500,000,000 and the commercial paper of the
holding company of which is rated not less than A-1 or the equivalent thereof
by S&P or not less than P-1 or the equivalent thereof by Moody’s (or, if at
such time neither is issuing ratings, then a comparable rating of another
nationally recognised rating agency);

 

(c)                                  money
market instruments, commercial paper or other short term obligations rated not
less than A1 by S&P or not less than P1 by Moody’s, or (where a bank or
building society is rated by both S&P and by Moody’s) is rated not less
than A1 by S&P and not less than P1 by Moody’s;

 

(d)                                 any cash
deposited as collateral against securitised receivables; or

 

(e)                                  other investments
agreed between the Facility Agent and the Parent.

 

“CCMGC” means
CCMG Corporation, a Delaware corporation.

 

“CD&R” means
Clayton, Dubilier & Rice, Inc.

 

“CD&R Investors”
means, collectively (a) Clayton, Dubilier & Rice Fund VII, L.P.,
a Cayman Islands exempted limited partnership, (b) CD&R CCMG
Co-Investor L.P., a Cayman Islands exempted limited partnership, (c) CD&R
Parallel Fund VII, L.P., a Cayman Islands exempted limited partnership, (d) any
Affiliated Person of any of the foregoing, and (e) any successor in
interest to any of the foregoing.

 

24

 

“Centre of Main Interests”
has the meaning given to it in Article 3(1) of Council Regulation
(EC) No 1346/2000 of 29 May 2000 on Insolvency Proceedings.

 

“Certain Funds Event of
Default” means any circumstance constituting an Event of Default
under any of the following Clauses:

 

(a)                                  Clause 23.2
(Misrepresentation) by virtue of a breach
of any of the Certain Funds Repeated Representations;

 

(b)                                 Clause 23.5
(Insolvency and Rescheduling) so far as
it relates to Holdco;

 

(c)                                  Clause 23.6
(Winding-up) so far as it relates to
Holdco; and

 

(d)                                 Clause 23.11
(Unlawfulness and Invalidity).

 

“Certain Funds Period”
means the period from and including the date of this Agreement to and including
the earlier of:

 

(a)                                  the Closing Date;
and

 

(b)                                 28 February 2006.

 

“Certain Funds Repeated
Representations” means each of the representations set out in
Clause 19.1 (Status), Clause 19.3 (Binding Obligations), Clause 19.4 (Execution of
the Finance Documents) Clause 19.8 (Validity and
Admissibility in Evidence),  Clause 19.25
(US Government Regulations) and
Clause 19.27 (The Acquisition).

 

“Change in Consolidated
Working Capital” means, for any applicable period, the amount of
Consolidated Working Capital at the beginning of such period minus the amount
of Consolidated Working Capital at the end of such period.

 

“Change of Control”
means the occurrence of any of the following events:

 

(a)                                  at
any time prior to the initial registered public offering of CCMGC’s or any
Parent Entity’s Voting Stock, the Permitted Holders shall in the aggregate be
the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the
Securities Exchange Act of 1934, as amended from time to time) of (x) so
long as CCMGC is a subsidiary of any Parent Entity, shares of Voting Stock
having less than 51% of the total voting power of all outstanding shares of
such Parent Entity (other than a Parent Entity that is a subsidiary of another
Parent Entity) and (y) if CCMGC is not a subsidiary of any Parent Entity,
shares of Voting Stock having less than 51% of the total voting power of all
outstanding shares of CCMGC;

 

(b)                                 on
and after the date of the initial registered public offering of CCMGC’s or any
Parent Entity’s Voting Stock, (i) (x) the Permitted Holders shall in
the aggregate be the “beneficial owner” (as defined in Rules 13d-3 and
13d-5 under  the Securities Exchange Act
of 1934, as amended from time to time) of (A) so long as CCMGC is a
subsidiary of any Parent Entity, shares of Voting Stock having less than 35% of
the total voting power of all outstanding shares of such Parent Entity (other
than a Parent Entity that is a subsidiary of another

 

25

 

Parent Entity) and (B) if CCMGC is not a
subsidiary of any Parent Entity, shares of Voting Stock having less than 35% of
the total voting power of all outstanding shares of CCMGC and (y) any “person”
or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended from time to time), other than one
or more Permitted Holders, shall be the “beneficial owner” of (A) so long
as CCMGC is a subsidiary of any Parent Entity, shares of Voting Stock having
more than 35% of the total voting power of all outstanding shares of a Parent
Entity (other than a Parent Entity that is a subsidiary of another Parent
Entity) and (B) if CCMGC is not a subsidiary of any Parent Entity, shares
of Voting Stock having more than 35% of the total voting power of all
outstanding shares of CCMGC or (ii) the Continuing Directors shall cease
to constitute a majority of the members of the board of directors of CCMGC; or

 

(c)                                  CCMGC
shall cease to own, directly or indirectly, 100% of the Capital Stock of the
Parent,

 

provided that for the purposes of this paragraph “Voting Stock” shall mean shares of Capital Stock entitled to
vote generally in the election of directors.

 

“Clean-Up Date”
means the date falling 120 days after the Closing Date.

 

“Closing Date”
means the date of the completion of the Acquisition.

 

“Collateralisation Ratio”
means, on each Collateralisation Test Date and in relation to any C Borrower,
the ratio (expressed as a percentage) equal to such Borrower’s Borrower
Equipment Market Value divided by such Borrower’s Borrower Equipment NBV, in
each case calculated as at such Collateralisation Test Date (provided
that such ratio shall not be more than 100%).

 

“Collateralisation Test
Date” means each anniversary of the Closing Date.

 

“Commitment”
means:

 

(a)                                  when
designated “A1”:

 

(i)            in relation to a Bank which
is a party hereto as at the Closing Date, the amount in each currency set
opposite its name under the heading “A1 Commitment”
in Part 1 of Schedule 1 (The Banks and their
Commitments) and the amount in such currency of any other
A1 Commitment transferred to it under this Agreement; and

 

(ii)           in relation to any other
Bank, the amount in such currency of any A1 Commitment transferred to it
under this Agreement,

 

to the extent not cancelled,
reduced or transferred by it under this Agreement;

 

(b)                                 when
designated “A1 Tranche”:

 

(i)            in relation to a Bank which
is a party hereto as at the Closing Date, the amount in the currency set
opposite its name under the heading “A1 Commitment”
in Part 1 of Schedule 1 (The Banks and their

 

26

 

Commitments) in relation to
the relevant A1 Tranche and the amount in such currency of any other A1 Tranche
Commitments transferred to it under this Agreement; and

 

(ii)           in relation to any other
Bank, the amount in such currency of any A1 Tranche Commitments
transferred to it under this Agreement,

 

to the extent not cancelled,
reduced or transferred by it under this Agreement;

 

(c)                                  when
designated “A2”:

 

(i)            in relation to a Bank which
is a party hereto as at the Closing Date, the amount in each currency set
opposite its name under the heading “A2 Commitment”
in Part 1 of Schedule 1 (The Banks and their
Commitments) and the amount in such currency of any other
A2 Commitment transferred to it under this Agreement; and

 

(ii)           in relation to any other
Bank, the amount in such currency of any A2 Commitment transferred to it
under this Agreement,

 

to the extent not cancelled,
reduced or transferred by it under this Agreement;

 

(d)                                 when
designated “A2 Tranche”:

 

(i)            in relation to a Bank which
is a party hereto as at the Closing Date, the amount in the currency set
opposite its name under the heading “A2 Commitment”
in Part 1 of Schedule 1 (The Banks and their
Commitments) in relation to the relevant A2 Tranche and the amount
in such currency of any other A2 Tranche Commitments transferred to it under
this Agreement; and

 

(ii)           in relation to any other
Bank, the amount in such currency of any A2 Tranche Commitments transferred to
it under this Agreement,

 

to the extent not cancelled,
reduced or transferred by it under this Agreement;

 

(e)                                  when
designated “C”:

 

(i)            in relation to a Bank which
is a party hereto as at the Closing Date, the amount in Euro set opposite its
name under the heading “C Commitment”
in Part 1 of Schedule 1 (The Banks and their
Commitments) and the amount in Euro of any other C Commitment
transferred to it under this Agreement; and

 

(ii)           in relation to any other
Bank, the amount in Euro of any C Commitment transferred to it under this
Agreement,

 

to the extent not cancelled,
reduced or transferred by it under this Agreement;

 

27

 

(f)                                    when
designated “A1 Swingline”:

 

(i)            in relation to a Bank which
is a party hereto as at the Closing Date, the amount in Euro set opposite its
name under the heading “A1 Swingline Commitment”
in Part 2 of Schedule 1 (The Banks and their
Commitments) and the Euro Amount of any other A1 Swingline
Commitment transferred to it under this Agreement; and

 

(ii)           in relation to any other
Bank, the Euro Amount of any A1 Swingline Commitment transferred to it under
this Agreement,

 

to the extent not cancelled,
reduced or transferred by it under this Agreement;

 

(g)                                 when
designated “A2 Swingline”:

 

(i)            in relation to a Bank which
is a party hereto as at the Closing Date, the amount in Euro set opposite its
name under the heading “A2 Swingline Commitment”
in Part 2 of Schedule 1 (The Banks and their
Commitments) and the Euro Amount of any other A2 Swingline
Commitment transferred to it under this Agreement; and

 

(ii)           in relation to any other
Bank, the Euro Amount of any A2 Swingline Commitment transferred to it under
this Agreement,

 

to the extent not cancelled, reduced or transferred
by it under this Agreement; and

 

(h)                                 when
designated “C Swingline”:

 

(i)            in relation to a Bank which
is a party hereto as at the Closing Date, the amount in Euro set opposite its
name under the heading “C Swingline Commitment”
in Part 2 of Schedule 1 (The Banks and their Commitments)
and the amount in Euro of any other C Swingline Commitment transferred to it
under this Agreement; and

 

(ii)           in relation to any other
Bank, the amount in Euro of any C Swingline Commitment transferred to it under
this Agreement,

 

to the extent not cancelled, reduced or transferred
by it under this Agreement; and

 

(i)                                     without
any such designation, the “A1 Commitment”,
the “A2 Commitment”, the “C Commitment”, the “A1 Swingline Commitment”,
the “A2 Swingline Commitment” and/or the “C Swingline Commitment” as the context requires.

 

“Commitment Letter”
means the letter entitled “International Securitisation Bridge Commitment
Letter” dated 18 November 2005 among the Arrangers and Holdco.

 

“Consolidated Net Profit”
means, for any period, net profit of the Parent and its consolidated
subsidiaries for such period, determined on a consolidated basis in accordance
with the Applicable Accounting Principles as at the Closing Date.

 

28

 

“Consolidated Working Capital” means, at the date of determination thereof, the
aggregate amount of all current assets (excluding cash, Cash Equivalents,
pensions assets, interest receivable, income or corporation tax receivable, the
effects (if any) of the application of purchase accounting and the fair value
of Hedging Transactions) minus the
aggregate amount of all current liabilities (excluding the current maturities
of Financial Indebtedness, interest payable, provisions, pensions liabilities,
corporation tax payable, distributions and redemptions payable, the effects (if
any) of the application of purchase accounting and the fair value of any
Hedging Transactions).

 

“Continuing
Directors” means the directors of CCMGC on the Closing Date, after
giving effect to the Transactions and the other transactions contemplated
thereby, and each other director if, in each case, such other director’s
nomination for election to the board of directors of CCMGC is recommended by at
least a majority of the then Continuing Directors or the election of such other
director is approved by one or more Permitted Holders.

 

“Coordinator”
means Hertz Europe Limited or any other subsidiary of the Parent which has
replaced the existing Coordinator pursuant to and in accordance with
Clause 39.7 (Change of Coordinator).

 

“Core Countries Risk
Vehicle Percentage” means, in relation to the A1 Borrowers and the
A2 Borrowers and as at each Calculation Date, the ratio (expressed as a
percentage) equal to (a) the Euro Amount of the aggregate Net Book Value
of the Risk Vehicles of all A1 Borrowers and A2 Borrowers (or if any such
Borrower is a Financeco, its Related Opco) divided by (b) the Euro Amount
of the aggregate of the Borrower Fleet NBV of all such Borrowers, in each case
as at such Calculation Date.

 

“Core Country”
means:

 

(a)        when designated “A”,
Australia, Belgium, Canada, France, Germany, Italy, The Netherlands, Spain,
Switzerland or the United Kingdom;

 

(b)        when designated “C”,
France or Spain; and

 

(c)        without any such designation, an “A Core Country” and/or a “C Core
Country”, as the context requires.

 

“Core Country Equipment
Assets” means, at any Calculation Date and in relation to any C
Borrower (or if such Borrower is a Financeco, its Related Opco):

 

(a)           Equipment that (x) is
legally and beneficially owned by such Borrower or its Related Opco (as the
case may be), (y) is not damaged (other than as a result of ordinary wear
and tear) and (z) has been fully paid for by such Borrower or its Related
Opco (as the case may be) provided that:

 

(i)            in relation to a Borrower
that is an SPV, any Equipment which is leased by such SPV to its Related Opco
pursuant to a finance or capital lease will be deemed to comply with clause (x) above
if such Equipment is legally and beneficially owned by such SPV and/or its
Related Opco;

 

29

 

(ii)           except as provided in
paragraph (i) above, no Equipment that is the subject of any finance
or capital lease shall be included in this paragraph (a); and

 

(b)           Equipment that has been
purchased by such Borrower or its Related Opco (as the case may be) but has not
been fully paid for by such Borrower or its Related Opco (as the case may be)
provided:

 

(i)            such Equipment has been
delivered to, and will be paid for by, such Borrower or its Related Opco (as
the case may be) no more than 30 days after such Calculation Date;

 

(ii)           the outstanding purchase
price in relation to such Equipment will be paid directly from (x) the
proceeds of an Advance made under the C Facility after the Settlement Date
relating to such Advance and (y) the cash and Cash Equivalents of such
Borrower or its Related Opco (as the case may be); and

 

(iii)          upon such payment by such
Borrower or its Related Opco (as the case may be) in accordance with
paragraph (b)(ii) above, title to such Equipment will immediately be
transferred to such Borrower or its Related Opco (as the case may be) free of
any security (other than any security arising by operation of law) and any
retention rights arising in favour of the relevant Equipment Manufacturer or
any other third party.

 

“Core Country Fleet”
means, at any Calculation Date and in relation to any A1 Borrower or A2
Borrower (or if such Borrower is a Financeco, its Related Opco):

 

(a)           each vehicle that (x) is
legally and beneficially owned by such Borrower or its Related Opco (as the
case may be), (y) is not damaged (other than as a result of ordinary wear
and tear) and (z) has been fully paid for by such Borrower or its Related
Opco (as the case may be), provided that:

 

(i)            in relation to a Borrower
that is an SPV, any vehicle which is leased by such SPV to its Related Opco
pursuant to a finance or capital lease will be deemed to comply with clause (x) above
if such vehicle is legally and beneficially owned by such SPV and/or its
Related Opco;

 

(ii)           in relation to Hertz (UK)
Ltd and any vehicle which is the subject of an Eligible Lombard Leasing
Agreement, such vehicle will be deemed to comply with clauses (x) and (z) above
(1) if Hertz (UK) Ltd has made payment of the Minimum Sales Price (as defined
in, pursuant to and in accordance with such Eligible Lombard Leasing Agreement)
in relation thereto prior to or no more than 30 days after such Calculation
Date (notwithstanding that title to such vehicle will be retained by Lombard in
accordance with such Eligible Lombard Leasing Agreement) and (2) for so
long as such vehicle remains an Eligible Lombard Vehicle; and

 

30

 

(iii)          except as provided in
paragraph (i) or (ii) above, no vehicle which is the subject of
any UK Capital Lease Indebtedness, any Dutch Capital Lease Indebtedness or any
other finance or capital lease, in each case as at such Calculation Date, shall
be included in this paragraph (a); and

 

(b)           each vehicle that has been
purchased by such Borrower or its Related Opco (as the case may be) but has not
been fully paid for by such Borrower or its Related Opco (as the case may be)
provided:

 

(i)            such vehicle has been
delivered to, and will be paid for by, such Borrower or its Related Opco (as the
case may be) no more than 30 days after such Calculation Date;

 

(ii)           the outstanding purchase
price in relation to such vehicle will be paid directly from (x) the
proceeds of an Advance made under the relevant A Facility after the Settlement
Date relating to such Advance, and (y) the cash and Cash Equivalents of
such Borrower or its Related Opco (as the case may be); and

 

(iii)          upon such payment by such
Borrower or its Related Opco (as the case may be) in accordance with
paragraph (b)(ii) above, title to such vehicle will immediately be
transferred to such Borrower or its Related Opco (as the case may be) free of
any security (other than any security arising by operation of law) and any
retention rights arising in favour of the relevant Vehicle Manufacturer or any
other third party.

 

“CORRA” means,
on any date, the overnight repo rate which appears under the heading “Financial
Statistics Money Market Yields” on the Bank of Canada’s website in respect of
that day and which is the weighted average of GC (non specific collateral)
traded through and reported by Freedom International Brokerage Inc., Prebon
Yamane (Canada) Ltd. and Shorcan Brokers Ltd.

 

“Defaulted Receivable” means
any receivable written off according to the company’s usual practices.

 

“Depreciation Charge”
means, with respect to each vehicle or Equipment, a percentage equal to the
product of (a) the applicable Depreciation Percentage multiplied by (b) the
applicable Capitalised Costs.

 

“Depreciation Percentage”
means:

 

(a)           with
respect to each vehicle:

 

(i)            which is not a Risk Vehicle,
a percentage calculated on the basis of straight line amortisation of such
vehicle (with the applicable rate of amortisation calculated on the basis of
the Capitalised Cost of such vehicle amortised to the reasonably anticipated
date of buy-back under the Buy-Back Agreement relating to such vehicle and the
specified repurchase price thereof under such Buy-Back Agreement); and

 

31

 

(ii)           which is a Risk Vehicle, a
percentage calculated on the basis of straight line amortisation of such
vehicle (with the applicable rate of amortisation calculated on the basis of
the Capitalised Cost of such vehicle amortised to the reasonably anticipated
date of sale or other disposal of such vehicle and the reasonably anticipated
residual value thereof as of such date); and

 

(b)           with respect to each
Equipment:

 

(i)            which is subject to a
Buy-Back Agreement, a percentage calculated on the basis of straight line
amortisation of such Equipment (with the applicable rate of amortisation
calculated on the basis of the Capitalised Cost of such Equipment amortised to
the reasonably anticipated date of buy-back under the Buy-Back Agreement
relating to such Equipment and the specified repurchase price thereof under
such Buy-Back Agreement); and

 

(ii)           which is not subject to a
Buy-Back Agreement, a percentage calculated on the basis of straight line
amortisation of such Equipment (with the applicable rate of amortisation
calculated on the basis of the Capitalised Cost of such Equipment amortised to
the reasonably anticipated date of sale or other disposal of such Equipment and
the reasonably anticipated residual value thereof as of such date),

 

provided further, that with respect to the foregoing
determinations (including, without limitation, any residual value of any
vehicles or Equipment), such determinations shall be made no less frequently
than once in each three month period and, on each additional date, as may be
required by the Applicable Accounting Principles.

 

“Designated
Currency” means:

 

(a)                                  in
the case of the A1 Sterling Tranche and the A2 Sterling Tranche, Sterling or,
subject to Clause 2.1(b) (Grant of the Facilities),
Euro;

 

(b)                                 in
the case of the A1 Australian Dollar Tranche and the A2 Australian Dollar
Tranche, Australian Dollars;

 

(c)                                  in
the case of the A1 Canadian Dollar Tranche and the A2 Canadian Dollar Tranche,
Canadian Dollars;

 

(d)                                 in
the case of the A1 Italian Non-Guaranteed Tranche and the A2 Italian
Non-Guaranteed Tranche, Euro;

 

(e)                                  in
the case of the A1 Swiss Franc Tranche and the A2 Swiss Franc Tranche, Swiss
Francs or, subject to Clause 2.1(b) (Grant of the
Facilities), Euro;

 

(f)                                    in
the case of the A1 Swingline Facility and the A2 Swingline Facility, Sterling,
Australian Dollars, Canadian Dollars, Swiss Francs and Euro;

 

(g)                                 in
the case of the A1 Euro Tranche, the A2 Euro Tranche and the Permitted Euro
Tranche, Euro;

 

32

 

(h)                                 in
the case of the C Facility, Euro or, subject to Clause 2.1(c) (Grant of the Facilities), Sterling, Australian Dollars,
Canadian Dollars, Swiss Francs and Euro; and

 

(i)                                     in
the case of the C Swingline Facility, Euro.

 

“Designated
Currency Amount”  means,
in relation to any amount required to be determined hereunder, (a) if such
amount (or portion thereof) is denominated in a Designated Currency, such
amount or portion in such Designated Currency and (b) if such amount (or
portion thereof) is denominated in a currency other than such Designated
Currency, the Designated Currency Equivalent of such amount or portion, in each
case as at such date of determination.

 

“Designated Currency
Equivalent” means, in relation to an amount denominated or expressed
in any currency other than the relevant Designated Currency, the equivalent
thereof in such Designated Currency calculated at the Spot Rate of Exchange as
at the relevant date of determination.

 

“Designated Obligor”
means a member of the Group that is (a) a borrower under a Designated
Obligor Intercompany Loan Agreement that has been accepted as a Designated
Obligor for the purposes of this Agreement in accordance with Clause 39.4 (Request for Designated Obligor) and Clause 39.5 (Designated Obligor Conditions Precedent) and has not ceased
to be regarded as a Designated Obligor under Clause 39.6 (Cessation of a Designated Obligor) or (b) a Guarantor.

 

“Designated Obligor Charge”
means a first ranking security assignment (or equivalent first ranking security
interest) in the agreed form or otherwise in form and substance satisfactory to
the Security Agent (acting reasonably) executed or to be executed in favour of
a Borrower that on-lends the proceeds of any Advance to a Designated Obligor
under a Designated Obligor Intercompany Loan Agreement, as security for actual,
contingent, present and/or future obligations and liabilities of such
Designated Obligor under or pursuant to such Designated Obligor Intercompany
Loan Agreement.

 

“Designated Obligor
Intercompany Loan Agreement” means an intercompany loan agreement in
the agreed form or otherwise in form and substance satisfactory to the Security
Agent (acting reasonably) between a Borrower, as lender, and a Designated
Obligor, as borrower, which provides for the lending by such Borrower to such
Designated Obligor of proceeds of any Advance.

 

“Designated Obligor
Re-Charge” means a first ranking security assignment (or equivalent
first ranking security interest) granted by a Borrower that borrows an Advance
the proceeds of which are to be on-lent to a Designated Obligor under a Designated
Obligor Intercompany Loan Agreement in respect of such Designated Obligor
Intercompany Loan Agreement and the related Designated Obligor Charge in the
agreed form or otherwise in form and substance satisfactory to the Security
Agent (acting reasonably) executed or to be executed in favour of the Finance
Parties represented by the Security Agent, as security for all the actual,
contingent, present and/or future obligations and liabilities of the relevant
Borrower under or pursuant to the Finance Documents.

 

33

 

“Disclosure Letter”
means the letter dated on or about the date of this Agreement from the Parent
to the Facility Agent in the agreed form and headed “Disclosure Letter”.

 

“Dispute” has
the meaning given to it in Clause 47.1 (English
Courts).

 

“Double Taxation
Treaty”  means in
relation to any payment made by an Obligor to any Finance Party hereunder or
under the Finance Documents, any convention or agreement between the
jurisdiction imposing any tax on such payment and any other jurisdiction for
the avoidance of double taxation with respect to such taxes.

 

“Dutch Banking Act”
means the Dutch Act on the Supervision of the Credit System 1992 (Wet toezicht kredietwezen 1992) and its successors
(including but not limited to the Dutch Act on Financial Supervision (Wet op het Financieel Toezicht).

 

“Dutch Borrower”
means each Borrower incorporated in The Netherlands.

 

“Dutch Capital Lease
Indebtedness” means, at any time, the aggregate amount of the
liabilities of each Borrower (or, if such Borrower is a Financeco, its Related
Opco) organised in The Netherlands under any finance or capital leases or in
respect of any hire purchase arrangements, at such time.

 

“Dutch Central Bank”
means De Nederlandsche Bank N.V.

 

“EBITDA” means,
for any period, the sum of Consolidated Net Profit for such period adjusted (i) to
exclude the following items (without duplication) of income or expense to the
extent that such items are included in the calculation of Consolidated Net
Profit: (a) Interest Expense, (b) any non-cash expenses and charges, (c) total
income tax expense, (d) depreciation expense, (e) the expense
associated with amortisation of intangible and other assets (including
amortisation or other expense recognition of any costs associated with asset
write-ups in accordance with APB Nos. 16 and 17), (f) non-cash provisions
for reserves for discontinued operations (to the extent that the cash costs
related to such reserved expenses are deducted from EBITDA when such cash costs
are incurred), (g) any extraordinary, unusual or non-recurring gains or
losses or charges or credits, including but not limited to any expenses
relating to the Transactions and any non-recurring or extraordinary items paid
or accrued during such period relating to deferred compensation owed to any
Management Investor that was cancelled, waived or exchanged in connection with
the grant to such Management Investor of the right to receive or acquire shares
of common stock of CCMGC or any Parent Company, (h) any gain or loss
associated with the sale or write-down of assets not in the ordinary course of
business, and (i) any income or loss accounted for by the equity method of
accounting (except in the case of income to the extent of the amount of cash
dividends or cash distributions actually paid to the Parent or any of its
subsidiaries by the entity accounted for by the equity method of accounting)
and (ii) by reducing EBITDA (as otherwise determined above) by the amounts
permitted pursuant to clause (a) of the definition of “Permitted Distributions” (other than clause (a)(iii)) paid
by the Parent during the relevant period, unless such amount has resulted in,
or will result in a reduction of EBITDA as calculated pursuant to clause (i) above.

 

34

 

“Effective Date”
has the meaning given to it in Clause 4 (Effective
Date) of the Amendment and Restatement Agreement.

 

“EFS” means
Equipole Finance Services SAS.

 

“Eligibility Criteria”
means each of the matters required to be satisfied in order for a person to be
an Eligible Borrower.

 

“Eligible Borrower”
means:

 

(a)                                  in
relation to any A Facility (each such person an “A1 Eligible
Borrower” or an “A2 Eligible Borrower”
as the case may be) an SPV or a Financeco which has entered into for itself (or
in the case of an Australian Borrower, by its Related Opco):

 

(i)                                     in
the case of an SPV (A) one or more Qualified Vehicle Manufacturer/Dealer
Contracts with the relevant Vehicle Manufacturers, (B) one or more
Qualified Vehicle Manufacturer/Dealer Contracts and Vehicle Dealer Buy-Back
Guarantees with the relevant Vehicle Dealers, and (C) one or more leasing
agreements or, in the case of an SPV whose related Opco is organised in Canada
(or a province thereof) or a partnership that is a “Canadian partnership”
within the meaning of the Income Tax Act (Canada), one or more conditional sale
agreements and other related ancillary agreements, in each case with a Related
Opco and in form and substance satisfactory to the Facility Agent, acting
reasonably and consistent with then customary securitisation standards, provided
that in each case such SPV shall only purchase Vehicles under Qualified Vehicle
Manufacturer/Dealer Contracts; and

 

(ii)                                  in
the case of a Financeco, lending or other financing agreements with one or more
Opcos or SPVs, in each case, in form and substance satisfactory to the Facility
Agent (acting reasonably and consistent with then customary securitisation
standards) and, in each case, which has satisfied any criteria set out in
Schedule 13 (Eligible Customer Receivables Criteria)
in respect of its jurisdiction of incorporation.

 

(b)                                 in
relation to the C Facility (each such person a “C Eligible
Borrower”) an SPV or Financeco which has satisfied any criteria set
out in Schedule 13 (Eligible Customer
Receivables Criteria) in respect of its jurisdiction of
incorporation for the C Facility, which has entered into:

 

(i)                                     in
the case of an SPV, (A) Equipment Manufacturer Buy-Back Agreements with
the relevant Equipment Manufacturers and (B) leasing agreements with a
Related Opco, in each case, to the extent available on commercially reasonable
terms and in any event in form and substance satisfactory to the Facility Agent
(acting reasonably and consistent with then customary securitisation
standards); and

 

(ii)                                  in
the case of a Financeco, lending, or in the case of a Financeco which is also
an SPV, leasing or other operational agreements with one or 

 

35

 

more Opcos or with the one or more SPVs and in each
case, in form and substance satisfactory to the Facility Agent (acting
reasonably and consistent with then customary securitisation standards) and, in
each case, which has satisfied any criteria set out in Schedule 13 (Eligible Customer Receivables Criteria) in respect of its
jurisdiction of incorporation.

 

“Eligible Cash” means, at any
time:

 

(a)                                  in
relation to any Borrower other than a Borrower which is a SPV (or, if such
Borrower is a Financeco, its Related Opco), all cash of such Borrower or its
Related Opco (as the case may be) at such time provided that (a) the
Security Agent has a first priority perfected security interest in respect of
such cash (including any lockbox account in which such cash is maintained)
giving the Security Agent control over the use or application of such cash
and/or such lockbox account in which such cash is maintained, and the Security
Agent is provided with legal opinions of counsel in form and substance
reasonably satisfactory to it as to such security interest or (b) such
cash is deposited in the Security Agent Account; or

 

(b)                                 in
relation to any Borrower which is a SPV, the aggregate of (i) the balances
standing to the credit of (x) its SPV Collection Account and (y) if
agreed to by the Facility Agent in writing (acting on the instructions of an
Instructing Group) in relation to such Borrower at the time of its accession to
this Agreement as an Additional Borrower, its SPV Disbursement Account, in each
case, at such time and (ii) its Net VAT Cash Balance, at such time,
provided that (a) the Security Agent has a first priority perfected
security interest in respect of such cash (including any lockbox account in
which such cash is maintained) giving the Security Agent control over the use
or application of such cash and/or such lockbox account in which such cash is
maintained, and the Security Agent is provided with legal opinions of counsel
in form and substance reasonably satisfactory to it as to such security
interest or (b) such cash is deposited in the Security Agent Account.

 

“Eligible Cash Equivalents”
means, at any time and in relation to any Borrower (or, if such Borrower is a
Financeco, its Related Opco), any Cash Equivalents of such Borrower or its
Related Opco (as the case may be) at such time provided that (a) the
Security Agent has a first priority perfected security interest in respect of
such Cash Equivalents (including any lockbox account or securities account in
which such Cash Equivalents are maintained) giving the Security Agent control
over the use and application of such Cash Equivalents and/or such lockbox
account or securities account in which such Cash Equivalents are maintained,
and the Security Agent is provided with legal opinions of counsel in form and
substance reasonably satisfactory to it as to such security interest or (b) such
Cash Equivalents are deposited in the Security Agent Account.

 

36

 

“Eligible Customer Receivables” means, at
any time and in relation to any C Borrower (or, if such
Borrower is a Financeco, its Related Opco), the aggregate of all amounts owing to it from customers in respect of
rental of any Core Country Equipment Asset provided that:

 

(a)                                  in
accordance with its credit and collections policies, such receivables are
current and not more than 90 days overdue; and

 

(b)                                 the
criteria set out in Schedule 13 (Eligible Customer
Receivables Criteria) are satisfied.

 

“Eligible Lombard Leasing
Agreement” means a Lombard Leasing Agreement with respect to which
Hertz (UK) Ltd has validly and effectively assigned by way of security all of
its rights, title, interest and benefits thereunder in favour of the Security
Agent and (a) which has not been (i) terminated (whether
automatically, voluntarily or otherwise), (ii) repudiated, (iii) abandoned,
(iv) amended, modified, supplemented or waived, to the extent prohibited
by the terms of any document pursuant to which Hertz (UK) Ltd’s rights, title,
interest and benefits under such Lombard Leasing Agreement have been assigned
by way of security in favour of the Security Agent, (b) which has not
expired according to its terms or otherwise, and (c) pursuant to which no
set-off or deduction has been claimed or otherwise applied.

 

“Eligible Lombard Vehicle”
means (a) a vehicle leased pursuant to an Eligible Lombard Leasing
Agreement for the period from the expiry of the Fixed Period (as defined in the
Eligible Lombard Leasing Agreement) up to and excluding the seven month
anniversary of such expiry date and (b) which vehicle (i) is in the
possession and control of Hertz (UK) Ltd and is being maintained, insured,
serviced and used in the ordinary course of business of Hertz (UK) Ltd in
accordance with the Eligible Lombard Leasing Agreement, (ii) is not
subject to any loss, theft, destruction or damage (other than ordinary wear and
tear), (iii) is subject to insurance paid for, and for the benefit of,
Hertz (UK) Ltd equivalent to (or more comprehensive than) the insurance then
maintained for vehicles owned by Hertz (UK) Ltd and such insurance shall
otherwise be in compliance with the applicable Eligible Lombard Leasing
Agreement, (iv) in respect of which no Total Loss (as defined in the
applicable Eligible Lombard Leasing Agreement) has occurred, (v) is not
subject to any claim for possession, decommissioning, re-transfer, delivery,
storage or replacing by Lombard or any other person and which is otherwise
being maintained or otherwise used in accordance with the applicable Eligible
Lombard Leasing Agreement, (vi) has not been sold or otherwise disposed of
to any person, and (vii) is not subject to any legal proceedings or claims
materially adverse to the interests of the Banks.

 

“Eligible Receivables”
means, at any time and in relation to:

 

(a)                                  any
A1 Borrower or A2 Borrower (or, if such Borrower is a Financeco, its Related
Opco):

 

(i)                                     its
Vehicle Manufacturer Receivables (other than its Excluded Vehicle Manufacturer
Receivables);

 

(ii)                                  its
Vehicle Dealer Receivables;

 

37

 

(iii)                              its
Rebate Receivables, other than any Rebate Receivables which are included in the
amounts described in paragraphs (i) and/or (ii) above;

 

(iv)                             its
Insurance Receivables, other than any Insurance Receivables in respect of any
vehicle whose Net Book Value has been included in the amounts described in
paragraphs (i) and/or (ii) above; and

 

(v)                                its
VAT Receivables; and

 

(b)                                 in
relation to any C Borrower (or, if such C Borrower is a Financeco, its Related
Opco):

 

(i)                                    its
Equipment Manufacturer Receivables (other than its Excluded Equipment
Manufacturer Receivables);

 

(ii)                                 its Insurance
Receivables, other than any Insurance Receivables in respect of any Equipment
whose Net Book Value has been included in the amounts described in
paragraph (i) above;

 

(iii)                              its
Eligible Customer Receivables, other than Eligible Customer Receivables which
are included in any amount described in paragraphs (i) and/or (ii) above;
and

 

(iv)                             its
VAT Receivables,

 

and provided, in each case, such receivables:

 

(A)                              are not more than 90 days overdue and are evidenced
by invoices in electronic or paper form;

 

(B)                                if owed by a legal entity or by an individual that
is organised or resident in a country other than a European Union member
country or the country in which such Borrower or its Related Opco (as the case
may be) is organised, the Facility Agent has been provided with legal opinions
satisfactory to it (acting reasonably) confirming that, subject to customary
reservations and assumptions, such receivables are enforceable against the
entity or individual that owes them;

 

(C)                                arise in the usual course of trade of such Borrower
(or, if such Borrower is a Financeco, its Related Opco) or which arise in the usual course of trade
of any member of the Group and have been effectively transferred to such
Borrower (or, if such Borrower is a Financeco, to its Related Opco);

 

(D)                               are not owed by a sovereign debtor to the extent
that the nature of such debtor materially and adversely prejudices the ability
of the Security Agent to obtain an effective legal assignment of such
receivables;

 

(E)                                 are
not owed by a debtor known by any member of the Group or other Obligor to be
subject to bankruptcy or insolvency proceedings; and

 

(F)                                 can
be freely transferred (or subject to equivalent security interests to the
Security Agent in any relevant jurisdiction).

 

38

 

“Encumbrance”
means (a) a mortgage, charge, pledge, lien, transfer of title by way of
security or otherwise or other encumbrance securing any obligation of any
person, (b) any arrangement under which money held with a bank or other
financial institution may be applied, set off or made subject to a combination
of accounts so as to effect discharge of any sum owed or payable to any person
or (c) any other type of preferential arrangement (including any title
transfer and retention arrangement) having a similar effect.

 

“Engagement Letter”
means the letter entitled “International Securitisation Engagement Fee Letter”
dated 18 November 2005 between the Arrangers and Holdco and as amended and
restated on or about the Effective Date.

 

“Environmental Claim”
means any claim, proceedings or investigation by any person pursuant to any
Environmental Law.

 

“Environmental Law”
means any applicable law or regulation in any jurisdiction in which any member
of the Group or other Obligor conducts business which relates to the pollution
or protection of the environment or harm to or the protection of human health
and safety or the health of animals or plants.

 

“Environmental Permits”
means any permit, licence, consent, approval and other authorisation and the
filing of any notification, report or assessment required under any
Environmental Law for the operation of the business of any member of the Group
or other Obligor conducted on or from the properties owned or used by the
relevant member of the Group or other Obligor.

 

“Equipment”
means any equipment including, but not limited to, aerial and air breaking
equipment, bungalows, compactors, earth moving equipment, generators, handling
industrial and handling rough terrain equipment and vans used or otherwise
deployed in the ordinary course of the applicable C Borrower’s (or if such C
Borrower is a Financeco, its Related Opco’s) business.

 

“Equipment Manufacturer”
means the manufacturer of any Equipment.

 

“Equipment Manufacturer
Buy-Back Agreement” means in relation to any C Borrower:

 

(a)                                  any
purchase and buy-back agreement between such Borrower (or, if such Borrower is
a Financeco, its Related Opco) and an Equipment Manufacturer entered into prior
to the Closing Date with respect to any Equipment, provided that if necessary
or desirable in the reasonable opinion of the Mandated Lead Arrangers such
Borrower shall use (or if such Borrower is a Financeco, shall procure that its
Related Opco uses) its commercially reasonable efforts after the Closing Date
(or, if such Borrower is an Opco that does not have an Operational SPV as its
parent prior to the date falling six months after the Closing Date, such
Borrower shall use its reasonable best efforts after the date falling six
months after the Closing Date) to renegotiate such agreement in a manner such
that, after giving effect to any modifications or amendments as a result
thereof:

 

39

 

(i)                                    the
terms and conditions of such agreement will be satisfactory to the Facility
Agent (acting reasonably) to fully value such Equipment Manufacturer’s
commitments thereunder;

 

(ii)                                 such
agreement will contain retention of title provisions in favour of the Borrower
or its Related Opco (as the case may be) which will enable the Rating Agencies
to give value to such Equipment Manufacturer’s payment obligations thereunder;
and

 

(iii)                              such
agreement will be in form and substance satisfactory to the Facility Agent,
acting reasonably and consistent with then customary securitisation standards;
and

 

(b)                                 any
purchase and buy-back agreement between such Borrower or its Related Opco (as
the case may be) and an Equipment Manufacturer entered into on or after the
Closing Date with respect to any Equipment provided that:

 

(i)                                    the
terms and conditions of such agreement are satisfactory to the Facility Agent
(acting reasonably) to fully value such Equipment Manufacturer’s commitments
thereunder; and

 

(ii)                                 such
agreement will contain retention of title provisions in favour of the Borrower
or its Related Opco (as the case may be) which will enable the Rating Agencies
to give value to such Equipment Manufacturer’s payment obligations thereunder;
and

 

(iii)                              such
agreement will be in form and substance satisfactory to the Facility Agent,
acting reasonably and consistent with then customary securitisation standards.

 

“Equipment Manufacturer
Event of Default” means, with respect to any Equipment Manufacturer,
either of the following circumstances:

 

(a)                                  such
Equipment Manufacturer has failed to pay when due pursuant to the terms of the
relevant Equipment Manufacturer Buy-Back Agreement and such failure continues
unremedied for a period of 90 days or more, any amounts greater than the lesser
of:

 

(i)                                     EUR2,000,000
(or the Designated Currency Equivalent thereof) at such time; and

 

(ii)                                  the
aggregate of all amounts owed by such Equipment Manufacturer to the relevant C
Borrower (or if such Borrower is a Financeco, its Related Opco) at such time
pursuant to each Equipment Manufacturer Buy-Back Agreement and such Borrower or
its Related Opco (as the case may be), without double-counting, less such
amounts that are:

 

(A)                              being
contested in good faith by such Equipment Manufacturer, as evidenced in a
writing questioning the accuracy of amounts paid or payable with respect to
certain Equipment subject to Equipment Manufacturer Buy-Back Agreements entered
into

 

40

 

by such Equipment Manufacturer (but excluding
amounts arising pursuant to a general repudiation by such Equipment
Manufacturer of all of its obligations under all of its Equipment 

Manufacturer Buy-Back Agreements with such Borrower
or its Related Opco (as the case may be)); and

 

(B)                                for
which such Borrower or its Related Opco (as the case may be) has established an
adequate reserve (as determined by such Borrower, acting reasonably), which
reserve is pledged to the Security Agent for the benefit of the Finance Parties
pursuant to the Security Documents,

 

provided that the aggregate of such excluded amounts
shall not exceed EUR5,000,000 (or the Designated Currency Equivalent thereof);
or

 

(b)                                 any
of the events described in Clauses 23.5 (Insolvency
and Rescheduling), 23.6 (Winding-up) or
23.7 (Execution or Distress) occurs in respect
of such Equipment Manufacturer. (it being understood that the references in the
aforementioned Clauses to “Obligor” shall be deemed to refer to such
Equipment Manufacturer for the purposes of this Clause (b)).

 

“Equipment Manufacturer
Receivables” means, at any time and in relation to any C Borrower
(or, if such C Borrower is a Financeco, its Related Opco), the aggregate of all
amounts owed by any Equipment Manufacturer to such C Borrower or its Related
Opco (as the case may be) at such time pursuant to the disposition by such C Borrower
of any Equipment under any Equipment Manufacturer Buy-Back Agreement.

 

“Equity Financing”
means the proceeds of intra-group loans and/or cash common equity contributions
(or such other cash equity contributions acceptable to the Facility Agent (acting
reasonably)) made to any Borrower by any member of the Target Group that is not
an SPV provided that in the case of any such intra-group loans and/or cash
equity contributions made to a Borrower by (x) any person that is not a
Guarantor of such Borrower or (y) the Parent, such intra-group loans
and/or cash equity contributions (A) do not contain any mandatory put,
redemption, repayment, sinking fund or other similar provision prior to the one
year anniversary of the Final Maturity Date, (B) do not require the cash
payment of interest, dividends or distributions that would otherwise not be
permitted by the terms of this Agreement, (C) do not contain any covenants
(other than periodic reporting requirements and covenants to pay amounts when
due), and (D) are otherwise reasonably satisfactory to the Facility Agent.

 

“Equity Investors”
means, collectively, (a) the Carlyle Investors, the CD&R Investors and
the Merrill Lynch Investors, (b) any person that acquires Voting Stock of
Holdco on or prior to the Closing Date, and any Affiliated Person of such
person, and (c) any entity that succeeds to all of the rights and
obligations of any of the foregoing by operation of law.

 

41

 

“EURIBOR” means,
in relation to any amount to be advanced to, or owing by, an Obligor under the
Finance Documents in Euro on which interest for a given period is to accrue:

 

(a)                                  the
applicable Screen Rate as of the time specified in the Timetable on the
Quotation Date for the offering of deposits in the relevant currency for the
relevant period;

 

(b)                                 if
the applicable Screen Rate is not available for the Euro for the relevant
period, the percentage rate per annum obtained by interpolating the applicable
Screen Rates for the Euro for the two periods most closely corresponding to the
relevant period as of 11.00 a.m. (London time) on each of (i) the
date occurring immediately prior to the commencement of the relevant period and
(ii) the date occurring immediately after the end of the relevant period,
for such period; or

 

(c)                                  if
the applicable Screen Rate is not displayed for the Euro for the relevant
period, the arithmetic mean (rounded upwards to four decimal places) of the
rates (as notified to the Facility Agent) at which each of the relevant Reference
Banks was offering to prime banks in the London interbank market deposits in
such currency of an equivalent amount and for such period as of the time
specified in the Timetable on the Quotation Date.

 

“Euro Amount”  means, in relation to any amount required
to be determined hereunder, (a) if such amount (or portion thereof) is
denominated in Euro, such amount or portion in Euro or (b) if such amount
(or portion thereof) is denominated in a currency other than Euro, the Euro
Equivalent of such amount or portion, in each case as at such date of
determination.

 

“Euro Equivalent”
means, in relation to an amount denominated or expressed in any currency other
than Euro, the equivalent thereof in Euro calculated at the Spot Rate of
Exchange as at the relevant date of determination.

 

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

 

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

 

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

 

42

 

“European Union”
means the economic and political confederation of European nations which share
a common foreign and security policy and co-operate on justice and home
affairs, the 25 member states of which are, as of the Closing Date, Austria,
Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany,
Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, The
Netherlands, Poland, Portugal, the Slovak Republic, Slovenia, Spain, Sweden and
the United Kingdom.

 

“Event of Default”
means any of the events or circumstances described as such in Clause 23 (Events of Default).

 

“Excess Cash Flow” means, for any
period, EBITDA minus (without duplication) (i) any
Capital Expenditure made in cash during such period (except to the extent
financed with (x) net increase in indebtedness incurred under
paragraphs (n), (q) (to the extent relating to indebtedness incurred
under the Dutch Capital Lease Indebtedness and UK Capital Lease Indebtedness
(or any refinancings thereof which are made pursuant to said
paragraph (q)) or (x) of the definition of “Permitted
Indebtedness” during such period 
or (y) Equity Financing made during such period by any Parent
Company to any member of the Group), minus (ii) any
principal payments resulting in a permanent reduction of any Financial
Indebtedness of the Parent or any of its subsidiaries made during such period, minus (iii) Interest Expense for such period, minus (iv) any taxes paid or payable in cash during
such period (net of any refunds or rebates), minus
(v) (without duplication of paragraph (i) of this definition)
any Investment described in the definition of “Permitted
Investments” (other than with respect to Cash Equivalents and
transactions between members of the Group) which was paid in cash during such
period (except to the extent financed with (x) net increase in indebtedness
incurred under paragraphs (n), (q) (to the extent relating to
indebtedness incurred under the Dutch Capital Lease Indebtedness and UK Capital
Lease Indebtedness (or any refinancings thereof which are made pursuant to said
paragraph (q)) or (x) of the definition of “Permitted
Indebtedness” during such period or (y) Equity Financing made
during such period by any Parent Company to any member of the Group), net of
any amounts received in cash in respect of Permitted Investments, minus (vi) any Consideration paid in cash during such
period in respect of Permitted Acquisitions (other than Permitted Acquisitions
to the extent financed with (x) net increase in indebtedness incurred
under paragraphs (e), (n), (q) (to the extent relating to
indebtedness incurred under the Dutch Capital Lease Indebtedness and UK Capital
Lease Indebtedness (or any refinancings thereof which are made pursuant to said
paragraph (q)) or (x) of the definition of “Permitted
Indebtedness” during such period or (y) Equity Financing made
during such period by any Parent Company to any member of the Group), minus (vii) to the extent not included in EBITDA,
pension cash costs as advised by the Parent’s pensions actuarial adviser
including any cash cost of funding any portion of any deficit of any
retirement, redundancy, statutory or voluntary profit sharing plan or statutory
severance plan or arrangement covering individuals who are employed by any
Obligor, the Parent or any affiliate of any of them and as to which any of the
same has any direct or indirect obligation or liability for unfunded benefits
thereunder, plus (viii) the Change in
Consolidated Working Capital for such period plus
(xi) the Hertz Variable Debt Amount.

 

43

 

“Excess Risk Vehicle
Haircut” means, as at any Calculation Date, an amount equal to (a) the
difference (if positive) between the Core Countries Risk Vehicle Percentage and
the Authorised Risk Vehicle Percentage multiplied by (b) the Borrower
Fleet NBV of all of the A1 Borrowers and the A2 Borrowers as at such
Calculation Date.

 

“Exchange Act”
means the United States Securities Exchange Act of 1934, as amended from time
to time.

 

“Excluded Canadian Company”
means Matthews Equipment Ltd., Western Shut-Down Ltd., their respective
subsidiaries and any other entity (a) which is not an Obligor, (b) which
owns or leases Equipment which is used or otherwise deployed in Canada in the
ordinary course of such entity’s business and (c) whose primary business
purpose is to own or lease and use such Equipment.

 

“Excluded Equipment
Manufacturer Receivables” means, at any time and in relation to any
C Borrower (or, if such C Borrower is a Financeco, its Related Opco), any
Equipment Manufacturer Receivables that are owed to such C Borrower or its
Related Opco (as the case may be) by any Equipment Manufacturer with respect to
which an Equipment Manufacturer Event of Default has occurred.

 

“Excluded UK Vehicles”
means, as at any Calculation Date, any vehicle which would have been included
in the determination of the Borrower Fleet NBV of any A1 Borrower or A2
Borrower as at such Calculation Date if such vehicle had not been subject to
any UK Capital Lease Indebtedness as at such Calculation Date.

 

“Excluded Vehicle
Manufacturer Receivables” means, at any time and in relation to any
A Borrower (or, if such Borrower is a Financeco, its Related Opco), any Vehicle
Manufacturer Receivables that are owed to such Borrower or its Related Opco (as
the case may be) by any Vehicle Manufacturer with respect to which a Vehicle
Manufacturer Event of Default has occurred.

 

“Exemption Regulation”
means the Dutch Banking Act Exemption Regulation 1992 (Vrijstellingsregeling
Wtk 1992) dated 22 June 2002 of the Ministry of Finance of The
Netherlands, as promulgated in connection with the Dutch Banking Act, and its
successors (including but not limited to the Dutch Act on Financial Supervision
(Wet op het Financieel Toezicht) and the
regulations issued pursuant thereto).

 

“Existing Equipment Assets”
means, in relation to any C Borrower (or if such C Borrower is a Financeco, its
Related Opco), the Equipment owned by it on the Closing Date or to be owned by
it following a scheduled payment to be made not later than 30 days after the
Closing Date.

 

“Existing Indebtedness”
means, in relation to the Group, the Financial Indebtedness detailed in
Schedule 14 (Existing Indebtedness).

 

“Existing Vehicle Fleet”
means, in relation to any A1 Borrower or A2 Borrower (or if such Borrower is an
Australian Borrower or a Financeco, its Related Opco), the vehicles owned by it
on the Closing Date or vehicles it is in possession of and which will be owned
by it following a scheduled payment to be made not later than 30 days after the
Closing Date and, in each case, located in the Core Country relating to such A1
Borrower or A2 Borrower (as the case may be).

 

44

 

“Expiry Date”
means, in relation to any Letter of Credit, the date on which the maximum
aggregate liability thereunder is to be reduced to zero.

 

“Face Amount”
means, in relation to any Letter of Credit, the maximum amount which may be
claimed under such Letter of Credit by the beneficiary thereof as specified in
paragraph 1 of such Letter of Credit.

 

“Facility” means
the A1 Facility, the A2 Facility, the C Facility, the A1 Swingline Facility,
the A2 Swingline Facility and/or the C Swingline Facility, as the context
requires.

 

“Facility Office”
means, in relation to the Facility Agent, the office identified with its signature
below or such other office or offices as it may select by notice in writing to
the Parent or Coordinator and, in relation to any Bank, each office notified by
it to the Facility Agent in writing prior to the Closing Date (or, in the case
of a Transferee, at the end of the Transfer Certificate to which it is a party
as Transferee) in relation to each Designated Currency or such other office or
offices as it may from time to time select by notice to the Facility Agent.

 

“Fee Letters”
means each of the Bridge Fee Letter and such other contemporaneously executed
fee letter.

 

“Fee Recipient”
means a person to whom fees and expenses are payable by an Obligor pursuant to
this Agreement or under any of the Finance Documents.

 

“Final A Take-Out
Adjustment Percentage” means, when the A Take-Out Financing is the
Final A Take-Out Financing, the result (whether positive or negative, expressed
as a percentage) of the following equation:

 

A minus B divided by C

 

(a)                                  where
“A” is the proceeds of the Final A
Take-Out Financing (less any Eligible Cash or Eligible Cash Equivalents);

 

(b)                                 where
“B” is Borrower Asset Value transferred
into the Final A Take-Out Financing multiplied by sum of the A1 Advance Rate
and the A2 Advance Rate at the previous Reporting Date; and

 

(c)                                  where
“C” is (x) if the Final C Take-Out
Financing has not occurred,  the Borrower
Asset Value of all C Borrowers as at the previous Reporting Date multiplied by
the C Advance Rate as at the previous Reporting Date or (y) if the First C
Take-Out Financing has occurred, the Borrower Asset Value of all B Borrowers as
at the previous Reporting Date multiplied by the B Advance Rate as at the
previous Reporting Date,

 

provided that for the
purposes of calculating the above equation the following items shall be
excluded: (i) any VAT Receivables and (ii) any Vehicle which is
described in paragraph (b)(i) of the definition of Core Country
Fleet.

 

“Final A Take-Out Financing”
means the A Take-Out Financing which causes the A1 Advance Rate and the A2
Advance Rate to be zero or a negative percentage.

 

45

 

“Final C Take-Out
Adjustment Percentage” means, when an applicable C Take-Out
Financing is the Final C Take-Out Financing, the result (whether positive or
negative, expressed as a percentage) of the following equation:

 

A minus B divided by C

 

(a)                                  where
“A” equals the proceeds of the C
Take-Out Financing (less any Eligible Cash or Eligible Cash Equivalents);

 

(b)                                 where
“B” equals the Borrower Asset Value
transferred into the Final C Take-Out Financing multiplied by the C Advance
Rate at the previous Reporting Date; and

 

(c)                                  where
“C” is (x) if the Final A Take-Out
Financing has not occurred, the Borrower Asset Value of all A1 Borrowers and
all A2 Borrowers (as at the previous Reporting Date, without duplication)
multiplied by the sum of the A1 Advance Rate and the A2 Advance Rate as at the
previous Reporting Date or (y) if the Final A Take-Out Financing has
occurred,  the Borrower Asset Value of
all B Borrowers (as at the previous Reporting Date) multiplied by the B Advance
Rate (as at the previous Reporting Date).

 

“Final C Take-Out Financing”
means the C Take-Out Financing which causes the C Advance Rate to be zero or a
negative percentage.

 

“Final Maturity Date”
means the date that is 5 years after the Closing Date.

 

“Financeco”
means, in relation to any Facility, any person that:

 

(a)                                  is
organised as a special purpose company, partnership or other legal person that
satisfies the “bankruptcy remote” criteria of each Rating Agency;

 

(b)                                 save
in the case of an Orphan Financeco, is a subsidiary of Holdco and a direct or
indirect wholly-owned subsidiary of the Parent;

 

(c)                                  is
formed principally for the purpose of making loans, or otherwise providing
funding, to a Related Opco and other matters reasonably incidental thereto; and

 

(d)                                 save
in the case of an Orphan Financeco, is organised in (i) a Core Country in
relation to such Facility or The Netherlands in the case of the C Facility, (ii) in
relation to an A Facility, the Republic of Ireland, or (iii) any other
jurisdiction satisfactory to the Facility Agent (acting reasonably).

 

“Finance Documents”
means this Agreement, any Borrower Accession Memorandum, the Security
Documents, any Guarantor Accession Memorandum, the Intercreditor Deed, any
Designated Obligor Intercompany Loan Agreement, any agreement or document
relating to any Hedging Transaction entered into with a Bank, the Fee Letters,
any Australian Finance Document and any other document designated in writing as
a “Finance Document” by the Facility Agent
and the Parent.

 

46

 

“Finance Parties”
means the Facility Agent, the Arrangers, the Security Agent, the Global
Coordinator, the Banks, any Secured Hedge Counterparties and the
L/C Issuers.

 

“Financial Indebtedness”
means, with respect to any person, without duplication, any indebtedness of
such person for or in respect of:

 

(a)                                  Indebtedness
for Borrowed Money;

 

(b)                                 any
documentary credit facility;

 

(c)                                  any
interest rate swap, currency swap, forward foreign exchange transaction, cap,
floor, collar or option transaction or any other treasury transaction or any
combination thereof or any other transaction entered into in connection with
the protection against or benefit from fluctuation in any rate or price (and
the amount of the Financial Indebtedness in relation to any such transaction
shall be calculated by reference to the mark-to-market valuation of such
transaction, taking into account the net positions in such transaction, at the
relevant time); and

 

(d)                                 any
guarantee, indemnity, bond, standby letter of credit or any other similar
instrument issued in connection with any Indebtedness for Borrowed Money or any
other Financial Indebtedness described in paragraphs (b) and (c) above,

 

but in the case of paragraphs (b) and (d) above,
excluding for the avoidance of doubt, indemnities or reimbursement obligations
issued to or in favour of any bank or financial institution in relation to any
guarantee, indemnity, bond, standby letter of credit or similar instrument
issued by such bank or financial institution in respect of commercial
obligations of any member of the Group arising in the ordinary course of
business not otherwise constituting Financial Indebtedness.

 

“Financial Quarter”
means each successive period of three months during a Twelve Month Period.

 

“First
Calculation Date” means:

 

(a)                                  9 December 2005;
and

 

(b)                                 thereafter,
the second Friday of each calendar month.

 

“French Borrower”
means any Borrower which is organised under the laws of France.

 

“Funds Flow Memorandum”
means the agreed form of funds flow statement approved by the Facility Agent in
respect of the Acquisition, together with a schedule of costs related to the
Acquisition.

 

“German Obligor”
means any Obligor organised under the laws of the Federal Republic of Germany.

 

“Governmental Authority”
means any (a) European, state, federal, national, regional, provincial,
municipal, local, domestic or foreign government, or any

 

47

 

political subdivision of the foregoing, (b) governmental,
regulatory, stock exchange, taxing or administrative entity, authority, agency,
commission, ministry or other similar body, including any public utility
control or public service commission or similar regulatory body or (c) court,
tribunal or judicial or arbitral body.

 

“Group” means
the Parent and its subsidiaries from time to time and any other Obligor from
time to time.

 

“Guarantee”
means, with respect to any person, (a) any guarantee or indemnity (except
as required hereby) by such person to or for the benefit of any other person,
or (b) any other voluntary assumption of any liability, whether actual or
contingent, in respect of any obligation of any third person.

 

“Guarantor Accession Memorandum”
means a duly completed memorandum substantially in the form set out in
Schedule 7 (Form of Guarantor Accession Memorandum).

 

“Guarantors”
means each Original Guarantor and each Additional Guarantor, provided in each
case that such entity has not been released from its rights and obligations
hereunder in accordance with Clause 39.3 (Resignation
of a Guarantor) or Clause 36.2 (Assignments
and Transfers by Obligors).

 

“Hedging Transaction”
means any currency or interest or commodity purchase, cap or collar agreement,
forward rate agreement, interest rate or currency future or option contract,
futures contract or option on futures, foreign exchange or currency or
commodity forward purchase or sale agreement, interest rate swap, currency
swap, commodity swap or combined interest rate and currency swap agreement and
any other similar agreement.

 

“Hertz Intercompany Loan”
means the loan from the Parent to The Hertz Corporation made on or about the
Closing Date not to exceed in the aggregate US$342,794,919.75 (or its
equivalent) at any time outstanding.

 

“Hertz International Tax
Sharing Agreement” means the tax sharing agreement among Holdco,
CCMGC, the Target and the Parent, in form and substance satisfactory to the
Facility Agent (acting reasonably), to be entered into on or prior to the
Closing Date, as the same may be amended, supplemented or otherwise modified
from time to time in accordance with the terms hereof and thereof.

 

“Hertz Variable Debt Amount”
means, for any period, the result of (whether positive or negative) an
aggregate amount equal to (i) as calculated on the last day of such
period, the product of (x) the sum of (A) the Borrower Fleet NBV and
all Eligible Receivables for all A1 Borrowers and all A2 Borrowers, (B) the
Borrower Fleet NBV and all Eligible Receivables (or equivalent amount) under
the B Bridge Facilities Agreements for all B Borrowers, and (C) the
Borrower Equipment NBV and all Eligible Receivables for all C Borrowers (the “Aggregate NBV”), multiplied by (y) 80%, minus (ii) as
calculated on the first day of such period, the product of (x) the
Aggregate NBV multiplied by (y) 80%.

 

“High Yield Financing”
means the issuance by CCMG Acquisition Corporation of up to
$2,800,000,000 of notes in a combined aggregate principal amount of (x) its

 

48

 

senior unsecured notes (in an aggregate principal
amount of up to $2,200,000,000) and (y) its senior subordinated unsecured
notes (in an aggregate principal amount of up to $600,000,000), pursuant to a
bridge financing or by private placement or underwritten offering, in relation
to the Acquisition.

 

“Holdco” means
CCMG Holdings, Inc., a corporation incorporated under the laws of the
State of Delaware, having its registered office (as at the date hereof) at c/o
M&C Corporate Services Limited (on behalf of Clayton Dubilier &
Rice Fund VII, L.P.), P.O. Box 309GT, Ugland House, South Church Street,
George Town, Grand Cayman, Cayman Islands, British West Indies, and any
successor thereto.

 

“Indebtedness for Borrowed
Money” means, with respect to any person, without duplication, any
indebtedness of such person for or in respect of:

 

(a)           moneys
borrowed;

 

(b)                                 any
amount raised by acceptance under any acceptance credit facility;

 

(c)                                  any
amount raised pursuant to any note purchase facility or the issuance of bonds,
notes, debentures, loan stock or any similar instrument;

 

(d)                                 any
amount raised pursuant to any issue of shares which are expressed to be
redeemable either at a fixed date or at the option of the holder at any time
before the Final Maturity Date;

 

(e)                                  the
amount of any liability in respect of any lease or hire purchase contract which
is required (in accordance with the Applicable Accounting Principles) to be
capitalised (treated as indebtedness for moneys borrowed) on the balance sheet
of the lessee or hire purchaser;

 

(f)                                    the
amount of any liability in respect of any advance or deferred purchase
agreement if one of the primary reasons for entering into such agreement is to
raise finance (but excluding trade liabilities payable in the ordinary course
of business of such person);

 

(g)                                 the
amount raised by the sale or discount of receivables on arm’s length terms; and

 

(h)                                 any
amount raised under any other transaction (including any forward sale or purchase
agreement or sale and leaseback transaction) having the commercial effect of a
borrowing.

 

“Indirect SPV Investment”
means any Investment in a non-Obligor substantially all of the proceeds of
which are used by that non-Obligor to make (a) an Investment in an Obligor
subordinated on terms reasonably satisfactory to the Facility Agent or (b) an
Investment in a non-Obligor substantially all of the proceeds of which are used
by that non-Obligor to make an Investment (whether by subordinated intercompany
loan or otherwise) in an Obligor subordinated on terms reasonably satisfactory
to the Facility Agent, provided each Investment described in clause (a) or
(b) above is reasonably contemporaneous, and, substantially back-to-back,
with such Investment in the non-Obligor.

 

49

 

“Information Date”
means (a) 19 December 2005 and (b) thereafter, the Business Day
falling two Specified Business Days after each Reporting Date.

 

“Information Memorandum”
means the “private” version of the Hertz information memorandum which, at the
Parent’s request and on its behalf, has been prepared in relation to this
transaction and distributed (or will after the Closing Date be prepared and
distributed) by the Arrangers to selected entities in connection with the
syndication of the Facilities, together with any supplements thereto.

 

“Initial Borrowing”
means all of the Advances and Letters of Credit made on the Closing Date.

 

“Initial Collateralisation
Appraiser” means GoIndustry Henry Butcher.

 

“Initial Maximum Amount”
means the aggregate of (a) the Euro Amount of the Total A1 Commitments
determined as of the Closing Date and without giving effect to any Initial
Borrowing, (b) the Euro Amount of the Total A2 Commitments determined as
of the Closing Date and without giving effect to any Initial Borrowing and (c) the
Euro Amount of the Total C Commitments determined as of the Closing Date and
without giving effect to any Initial Borrowing.

 

“Initial Security Documents” means each of
the documents listed in Schedule 20 (Security Documents)

 

“Instructing Group”
means:

 

(a)                                  in
relation to any A Facility, a Bank or Banks whose aggregate Euro Amount of the
A1 Commitments and A2 Commitments amount (or, if each Bank’s
A1 Commitments and A2 Commitments have been reduced to zero, did
immediately before such reduction to zero, amount) to more than fifty per cent.
of the aggregate Euro Amount of the Total A1 Commitments and the Total A2
Commitments;

 

(b)                                 in
relation to the C Facility, a Bank or Banks whose C Commitments amount (or, if
each Bank’s C Commitments have been reduced to zero, did immediately before
such reduction to zero, amount) in aggregate to more than fifty per cent. of
the Total C Commitments; and

 

(c)                                  without
indication as to a specific Facility or Facilities, a Bank or Banks whose
aggregate Commitments in Euro Amount in respect of all Facilities amount (or,
if each Bank’s Commitments have been reduced to zero, did immediately before
such reduction to zero, amount) to more than fifty per cent. of the Euro Amount
of the Total Commitments.

 

“Insurance Receivables”
means, at any time and in relation to any Borrower (or, if such Borrower is a
Financeco, its Related Opco), the aggregate of all amounts owed by any Insurer
to such Borrower or its Related Opco (as the case may be) in that Borrower’s or
Related Opco’s (as the case may be) Core Countries at such time.

 

“Insurer” means
any reputable and solvent insurer (including, as at the Closing Date, without
limitation, AIG) who has provided insurance coverage with respect to the loss

 

50

 

or destruction of, or damage to, or theft or any
casualty event with respect to (a) in the case of an A1 Borrower or A2
Borrower, a vehicle which is part of such Borrower’s Core Country Fleet, and (b) in
the case of a C Borrower, any Equipment that is part of such Borrower’s Core
Country Equipment Assets.

 

“Intellectual Property”
means all interests in or relating to registered and unregistered trade marks
and service marks, patents, registered designs, trade names, titles, registered
or unregistered copyrights in published and unpublished works, unregistered
designs, inventions registered or unregistered, any other intellectual property
rights and any applications for any of the foregoing and any rights to use any
of the foregoing.

 

“Intercreditor Deed”
means the security trust and intercreditor deed to be entered into between,
among others, the Parent, the Borrowers, the Guarantors, certain subsidiaries
of the Parent, the Facility Agent and the Security Agent and setting out, inter
alia, the terms of the subordination of the Shareholder Subordinated Loan
Agreements, certain intra-Group debt obligations and certain sharing
arrangements between the Finance Parties.

 

“Interest Expense” means, for any period, an amount equal to (a) interest expense
(accrued and paid or payable in cash for such period, and in any event
excluding any amortisation or write off of financing costs) on Indebtedness of
the Parent and its consolidated subsidiaries for such period minus (b) interest
income (accrued and received or receivable in cash for such period) of the
Parent and its consolidated subsidiaries for such period, in each case
determined on a consolidated basis in accordance with the Applicable Accounting
Principles as in effect on the Closing Date.

 

“Interest Period”  means in relation to an Unpaid
Sum, any of those periods mentioned in Clause 28.1 (Default
Interest Periods).

 

“Internal Revenue Code”
means the United States Internal Revenue Code of 1986, as amended, including
the Treasury regulations promulgated and rulings issued thereunder.

 

“Irish Borrower”
means any Borrower which is resident in Ireland for the purposes of tax or
which has a branch or agency in Ireland through which the Commitment is
advanced.

 

“Italian Banking Act”
means the Italian Legislative Decree no. 385 of 1 September 1993, as
amended.

 

“Italian Borrower”
means any Borrower incorporated under the laws of Italy.

 

“Italian Fleetco”
means a company to be organised under the laws of Italy after the Closing Date
as a fully owned subsidiary of Italian Opco.

 

“Italian Non-Guaranteed
Tranches” means the A1 Italian Non-Guaranteed Tranche and the A2
Italian Non-Guaranteed Tranche.

 

51

 

“Italian Opco”
means Hertz Italiana S.p.A., a società per azioni
organised under the laws of Italy, having its registered office in Rome, Viale
Leonardo Da Vinci n. 421.

 

“Investment”
means any advance, loan, extension of credit or capital contribution, or any
purchase of shares, stock, bonds, notes, debentures or other securities, or any
other investment in any person.

 

“L/C Amount”
means:

 

(a)                                  each
sum paid or due and payable by an L/C Issuer to the beneficiary of a Letter of
Credit pursuant to the terms of such Letter of Credit; and

 

(b)                                 all
liabilities, costs (including, without limitation, any costs incurred in
funding any amount which falls due from an L/C Issuer under a Letter of
Credit), claims, losses and expenses which such L/C Issuer incurs or sustains
in connection with a Letter of Credit,

 

in each case which has not been reimbursed pursuant
to Clause 12 (C Borrower’s Liabilities
in Relation to Letters of Credit).

 

“L/C Commission Rate”
means a letter of credit commission rate equal to the Applicable Margin for the
C Facility.

 

“L/C Issuer”
means a Bank which has notified the Facility Agent that it has agreed to a C
Borrower’s request to be an issuer of a Letter of Credit pursuant to the terms
hereof.

 

“L/C Proportion”
means, in relation to a Bank in respect of any Letter of Credit and save as
otherwise provided herein, the proportion (expressed as a percentage) borne by
such Bank’s Available Commitment to the Base Currency Available Facility in
relation to the C Facility immediately prior to the issue of such Letter
of Credit.

 

“Legal Opinions”
means each of the legal opinions referred to in Schedule 4 (Conditions Precedent) and Schedule 8 (Additional Conditions Precedent).

 

“Letter of Credit”
means any duly completed letter of credit issued or to be issued by an L/C
Issuer pursuant to Clause 4 (Utilisation of the
Facilities) in the form set out in Schedule 11 (Form of Letter of Credit) or any guarantee, indemnity
or other credit support instrument in a form accepted by the relevant C Borrower
(or the Coordinator on its behalf) which is acceptable to the Facility Agent
(acting on the instructions of all the Banks and the relevant L/C Issuer).

 

“LIBOR” means,
in relation to any amount to be advanced to, or owing by, an Obligor under the
Finance Documents in a currency (other than Euro, Canadian Dollars or
Australian Dollars) on which interest for a given period is to accrue:

 

(a)                                  the
applicable Screen Rate as of the time specified in the Timetable on the
Quotation Date for the offering of deposits in the relevant currency for the
relevant period;

 

(b)                                 if
the applicable Screen Rate is not available for the relevant currency for the
relevant period, the percentage rate per annum obtained by interpolating the

 

52

 

applicable Screen Rates for the relevant currency
for a period most closely corresponding to the relevant period as of 11.00 a.m.
(London time) on each of (i) the date occurring immediately prior to the
commencement of the relevant period and (ii) the date occurring
immediately after the end of the relevant period, for such period; or

 

(c)                                  if
the applicable Screen Rate is not displayed for the relevant currency for the
relevant period, the arithmetic mean (rounded upwards to four decimal places)
of the rates (as notified to the Facility Agent) at which each of the relevant
Reference Banks was offering to prime banks in the London interbank market deposits
in such currency of an equivalent amount and for such period as of the time
specified in the Timetable on the Quotation Date.

 

“Loan Note”
means a loan note issued under the Loan Note Deed Poll.

 

“Loan Note Deed Poll”
means a duly completed deed poll substantially in the form of Schedule 16
(Form of Loan Note Deed Poll),
executed and delivered by an Australian Borrower in accordance with
Clause 45.1 (Loan Note Deed Poll).

 

“Loan Note Register”
means the register for Loan Notes maintained by the Facility Agent under
Clause 45.5 (Establishment of Loan Note Register).

 

“Lombard” means
Lombard North Central plc and its successors in interest.

 

“Lombard Leasing Agreement”
means (x) the Letter of Understanding, dated 18 August 1997,
made between Lombard and Hertz (UK) Ltd, together with all schedules and
addendums thereto on or prior to the Closing Date (as in effect on the Closing
Date) (the “Existing Lombard Agreement”) and (y) such
other agreement substantially in the form of, or on commercial terms
substantially similar to, the Existing Lombard Agreement, in each case as may
be acceptable to the Facility Agent (acting reasonably).

 

“London Business Day”
means a day (other than a Saturday or a Sunday) on which banks generally are
open for business in London.

 

“LTIBR” means
any interest bearing receivables as set out in the guidelines of the German
Federal Ministry of Finance (BMF) dated 15 July 2004
and 22 July 2005 with a maturity which qualifies as long term in
accordance with Section 8 No. 1 of the Trade Tax Act (GewStG).

 

“Management Investors”
means, collectively, the officers, directors, employees and other members of
the management of CCMGC and/or its subsidiaries or family members or relatives
thereof or trusts for the benefit of any of the foregoing, who, at any
particular date, shall beneficially own or have the right to acquire, directly
or indirectly, common stock of CCMGC or any Parent Entity.

 

“Management Subscription
Agreement” means one or more stock subscriptions, stock options,
grants or other agreements which have been or may be entered into between CCMGC
or any Parent Entity and one or more Management Investors (or any of their
heirs, successors, assigns, legal representatives or estates), with respect to
the issuance to and/or acquisition, ownership and/or disposition by any of such
parties

 

53

 

of common stock of CCMGC or any Parent Entity, or
options, warrants, units or other rights in respect of common stock of CCMGC or
any Parent Entity, any agreements entered into from time to time by transferees
of any such stock, options, warrants or other rights in connection with the
sale, transfer or reissuance thereof, and any assumptions of any of the
foregoing by third parties, as amended, supplemented, waived or otherwise
modified from time to time.

 

“Mandatory Cancellation
Event” means any of the following events:

 

(a)                                  the Acquisition
Agreement is terminated; or

 

(b)                                 the Closing Date
has not occurred by 28 February 2006.

 

“Mandatory Cost Rate”
means the percentage rate per annum calculated by the Facility Agent in
accordance with Schedule 10 (Mandatory Cost Formulae).

 

“Manufacturers”
means the Equipment Manufacturers and the Vehicle Manufacturers.

 

“Material Adverse Effect”
means:

 

(a)                                  at
any time on or prior to the Closing Date, any fact, event, change, circumstance
or effect that is materially adverse to the business, condition (financial or
otherwise) or results of operations of the Group taken as a whole, or would
materially impair the ability of the Seller to consummate the transactions
contemplated by the Acquisition Agreement, other than any fact, event, change,
circumstance or effect resulting from:

 

(i)                                     general
changes or developments (other than those resulting from acts of terrorism, war
or armed hostilities) in the industries in which the Target Group operates or
in the general economy, financial, banking, currency or capital markets, except
to the extent such changes or developments have a disproportionate adverse
effect on the Target Group, taken as a whole, relative to other participants in
the industries in which the Target Group operates;

 

(ii)                                  normal
seasonal changes in the results of operations of the Target Group;

 

(iii)                               the
solicitation of offers to enter into the Acquisition Agreement, the negotiation
of the terms of and entering into of the Acquisition Agreement, the
announcement of the Acquisition Agreement and the consummation of the
transactions contemplated thereby or any action taken at the request of Holdco;

 

(iv)                              changes
in accounting requirements or principles or any changes in applicable laws or
interpretations thereof; or

 

(v)                                 any
failure in and of itself by any member of the Target Group (or of the Target
Group taken as a whole or any part of it) to meet any estimates of revenues or
earnings or other financial performance for any period (it being agreed that
the facts and circumstances giving rise

 

54

 

to such failure may be taken
into account in determining whether there has been a Material Adverse Effect),

 

provided that for purposes of this
paragraph (a), the industries in which the Target Group operates shall be
deemed to be the vehicle rental industry and the construction, industrial and
materials handling equipment rental industry; and

 

(b)                                 at
any time after the Closing Date, any fact, event, change, circumstance or effect
that would reasonably be expected to (i) be materially adverse to the
business, financial condition or results of operations of the Target or the

Obligors, taken as a whole
or (ii) have a material adverse effect on (x) the ability of the
Obligors, taken as a whole, to perform their material payment obligations under
the Finance Documents or (y) the validity or enforceability of the
definitive documentation for the Facilities, taken as a whole, or the rights or
remedies of any Arranger or any Bank under the Finance Documents, taken as a
whole.

 

“Material Intellectual
Property” means any Intellectual Property owned by any Obligor if
the termination of the rights of such Obligor to the use thereof or any other
loss thereof would reasonably be expected to have a Material Adverse Effect.

 

“Material Subsidiary”
means:

 

(a)                                  at
any time, a subsidiary of the Parent which has 5 per cent. of EBITDA and/or net
assets and/or total revenues of the Group, calculated on a consolidated
basis.  Compliance with this condition
shall be determined by reference to (i) the financial statements of such
subsidiary which were used for the purposes of producing the latest
consolidated financial statements of the Group and (ii) the latest audited
consolidated financial statements of the Group; and

 

(b)                                 any
subsidiary of the Parent to which a Material Subsidiary (as defined in
paragraph (a) above) transfers all or substantially all of its assets
(whether in a single transaction or a series of transactions).

 

“Merrill Lynch”
means Merrill Lynch Global Partners Inc.

 

“Merrill Lynch Investors”
means, collectively (a) ML Global Private Equity Fund, L.P., a Cayman
Islands exempted limited partnership, (b) Merrill Lynch Ventures L.P.
2001, a Delaware limited partnership, (c) CMC-Hertz Partners, L.P., a
Delaware limited partnership, (d) ML Hertz Co-Investor, L.P., a Delaware
limited partnership, (e) any Affiliated Person of any of the foregoing,
and (f) any successor in interest to any of the foregoing.

 

“Minimum Principal Loan
Note Amount” means AUD1.00.

 

“Model Year 2007 Vehicles”
means, in relation to a Core Country Borrower and in relation to any
Calculation Date, the total number of units of vehicles of such Core Country
Fleet ordered or purchased by such Borrower (or, if such Borrower is a
Financeco, the number of units of vehicles of the Country Fleet ordered or
purchased 

 

55

 

by its Related Opco) as determined on the relevant
Calculation Date, which have been purchased and/or ordered in relation to a
2007 vehicle model year contract from a Vehicle Manufacturer or a Vehicle
Dealer and in relation to which the Coordinator shall have certified to the
Facility Agent in writing on each Information Date such total number of
vehicles owned by each relevant Borrower or Related Opco (as the case may be).

 

“Monoline Compliance Event”
means, in the case of any A Facility, the provision by MBIA, AMBAC and/or any
other financial guarantor or similar insurance company rated AAA and/or Aaa by
the Rating Agencies and otherwise satisfactory to the Facility Agent (acting
reasonably), of a commitment letter or other agreement in form and substance
satisfactory to the Facility Agent (acting reasonably) to wrap any asset-backed
Take-Out Financing of such Facility with the underlying risk prior to the
provision of such commitment letter or other agreement rated BBB/Baa2 by the
Rating Agencies for a premium of 0.45 per cent. per annum or less and provided
that the Rating Agencies shall have affirmed in writing that such asset-backed
Take-Out Financing shall attain such BBB/Baa2 rating.

 

“Moody’s”
means Moody’s Investor Services Inc. and any successor thereto.

 

“Net Book Value”
means:

 

(a)                                  with
respect to each vehicle, such vehicle’s Capitalised Cost, minus the aggregate
Depreciation Charges accrued with respect to such vehicle up to and including
the immediately preceding Calculation Date; and

 

(b)                                 with
respect to Equipment, such Equipment’s Capitalised Cost, minus the aggregate
Depreciation Charges accrued with respect to such Equipment up to and including
the immediately preceding Calculation Date .

 

“Net Cash Proceeds”
means, with respect to (a) any disposal, lease or other transfer of an
asset (including any vehicle or Equipment), (b) making any claim under any
insurance policy or in respect of any condemnation or casualty event in respect
of vehicles or Equipment, (c) any Manufacturers’ rebates, (d) any VAT
refunds or (e) any Take-Out Financing, an amount equal to the gross
proceeds in cash and Cash Equivalents of such disposal, lease, asset transfer,
claim, rebate or Take-Out Financing, net (to the extent applicable) of:

 

(a)                                  reasonable
legal fees, accountants’ fees, brokerage, consultant and other customary fees,
underwriting commissions and other reasonable fees and expenses actually
incurred in connection with such disposal, lease, asset transfer, sale, claim,
rebate or Take-Out Financing;

 

(b)                                 any
income, capital gains, value-added or other taxes paid or reasonably estimated
to be payable as a result thereof, including as a consequence of any transfer
of funds in connection with the application thereof in accordance with
Clause 13.7 (Application of Amounts Prepaid);

 

(c)                                  appropriate
amounts provided or to be provided as a reserve, in accordance with Applicable
Accounting Principles, against any liabilities associated with any such
disposal, asset transfer or lease and retained by the Parent or the 

 

56

relevant disposing entity
after such disposal, asset transfer or lease and other appropriate amounts to
be used to discharge or pay on a current basis any other liabilities associated
with such disposal, asset transfer or lease provided that any amount so
reserved shall be applied in prepayment of the Facilities pursuant to
Clause 13.3 (Mandatory Reduction of the Facilities)
and Clause 13.7 (Application of Amounts
Prepaid) promptly upon discharge in full of the liability in respect
of which such reserve was established;

 

(d)                                 in
the case of any sale or other disposal of an asset subject to an Encumbrance
securing any indebtedness, payments made and instalments payments requiredsto
be made to repay such indebtedness, including payments in respect of principal,
interest and prepayment premiums and penalties; and

 

(e)                                  in
the case of any Take-Out Financing, any escrowed or pledged cash proceeds which
effectively secure, or are required to be maintained as reserves for, the
indebtedness of the Borrower in respect of, or the obligations of, any member
of the Group or other Obligor under, such Take-Out Financing.

 

“Net VAT Cash Balance”
means, in relation to any SPV at any time:

 

(a)                                  the
balance standing to the credit of its SPV VAT Account at such time; less

 

(b)                                 such
part of such balance as has been recorded in the VAT Obligations Ledger at such
time as an amount payable (but not yet paid) to the relevant tax authority.

 

“New Bank” has
the meaning set out in Clause 36.3 (Assignments and Transfers
by Banks).

 

“New Collateralisation
Appraiser” means a third party independent appraiser (other than the
Initial Collateralisation Appraiser) appointed jointly by the Facility Agent
(acting on the instructions of the Instructing Group) and by the Coordinator; provided,
that the terms of any appraisal shall be in form and substance, and from an
appraiser, satisfactory in each case to the Facility Agent.

 

“New Equipment Assets”
means, in relation to any C Borrower (or, if such C Borrower is a
Financeco, its Related Opco), any Equipment acquired by such C Borrower or
its Related Opco (as the case may be) after the Closing Date.

 

“New Vehicles”
means, in relation to any A Borrower (or, if such A Borrower is a Financeco,
its Related Opco), any vehicle acquired by such A Borrower or its Related Opco
(as the case may be) after the Closing Date.

 

“Non-Canadian Bank”
means, in relation to a Canadian Borrower, any Bank that does not satisfy
paragraph (b)(i) or (b)(ii) of the definition of “Qualifying Bank”.

 

“Noteco” means
Hertz Note Issuer Pty Limited (ACN 117 373 574), a wholly owned subsidiary of
Hertz Australia Pty. Limited.

 

“Notice of Exercise of Sale
Right” has the meaning set out in Clause 23.20 (Exercise of Sale Right).

 

57

 

“Notification”
means (a) in respect of any Advance other than a Swingline Advance, a duly
completed notification in the form set out in Part 1 of Schedule 22 (Notification), (b) in respect of any Swingline Advance,
a duly completed notification in the form set out in Part 2 of
Schedule 22 (Notification) and (c) in
respect of any Letter of Credit, a duly completed notification in the form set
out in Part 3 of Schedule 22 (Notification).

 

“Notification Date”
means, in relation to a Swingline Advance or a Letter of Credit, the Specified
Business Day on which the Facility Agent receives a duly completed Utilisation
Notice for such Swingline Advance or Letter of Credit and, subject to Clause 4.3
(Delivery of an Asset Report for Letters of Credit)
or Clause 5.2(a) (Delivery of a Utilisation
Notice for Swingline Advances) (as the case may be), an Asset Report
in accordance with Clause 4.1 (Utilisation Conditions)
or Clause 5.2(a) (Delivery of a Utilisation
Notice for Swingline Advances) (as the case may be).

 

“NZ Facilities Agreement”
means a senior bridge facilities agreement to be dated on or around 21 December 2005
between, amongst others, Hertz International Ltd, as Parent, Hertz New Zealand
Limited as Borrower, Hertz International, Ltd and Hertz New Zealand Holdings
Limited as Guarantors, Hertz Europe Limited as Coordinator, BNP Paribas and The
Royal Bank of Scotland plc as Mandated Lead Arrangers, Calyon as Co-Arranger,
BNP Paribas as Facility Agent and Security Agent, and the Banks named therein,
pursuant to which the Banks agreed to make available certain loan facilities
denominated in New Zealand Dollars to Hertz New Zealand Limited as borrower.

 

“NZ Guarantee”
means the guarantee incorporated in the NZ Facilities Agreement granted by each
of Hertz International, Ltd. as Parent, Hertz New Zealand Holdings Limited and
any party who becomes an “Additional Guarantor” as such term is defined in and
pursuant to the terms of the NZ Facilities Agreement.

 

“Obligors” means
the Parent, the Coordinator, the Borrowers, the Guarantors, Noteco, the
Designated Obligors and the Australian Obligors and “non-Obligor”
means (a) any member of the Group or (b) any affiliate of an Obligor
which is not a member of the Group in either case, that is not an Obligor.

 

“Opco”
means:

 

(a)                                  when designated “A” any subsidiary of the Parent that is:

 

(i)                                     an operating
company that is organised in an A Core Country; or

 

(ii)                                  a leasing company
that is organised in France or The Netherlands,

 

provided that such subsidiary owns or leases
vehicles which are used or otherwise deployed in the ordinary course of such
subsidiary’s business.  For the avoidance
of doubt, no Excluded Canadian Company shall constitute an A Opco; and

 

(b)                                 when
designated “C”, any subsidiary of the Parent
that is an operating or a leasing company that is organised in a C Core
Country, provided that such 

 

58

 

subsidiary owns or leases
Equipment which is used or otherwise deployed in the ordinary course of such
subsidiary’s business; and

 

(c)                                  without
any such designation, an “A Opco” and/or
a “C Opco” as the context requires.

 

“Operational SPV”
means any SPV that satisfies the Eligibility Criteria set out in
paragraph (a)(i) or (b)(i) (as the case may be) of the
definition of “Eligible Borrower”.

 

“Optional A Calculation
Date” means 30 December 2005.

 

“Original Equity Investors”
means the CD&R Investors, the Merrill Lynch Investors and the Carlyle
Investors.

 

“Original Financial
Statements” means in relation to (a) the Parent, its
preliminary consolidated financial statements for its financial year ended 31 December 2004
and (b) any other Obligor, its statutory or other accounts required by law
for its financial year ended 31 December 2004, to the extent the same
have been filed in the relevant jurisdiction.

 

“Original Obligors”
means the Parent, the Coordinator, the Original Borrowers and the Original
Guarantors.

 

“Orphan Financeco”
means, in relation to any Facility, any Financeco which:

 

(a)                                  is not affiliated
to any other member of the Group or any other Obligor; and

 

(b)                                 is
organised in any Core Country or in the Republic of Ireland or any other
jurisdiction approved by the Facility Agent (acting reasonably).

 

“Orphan SPV”
means, in relation to any Facility, any SPV which:

 

(a)                                  is
not directly or indirectly owned by, or otherwise affiliated with, Holdco; and

 

(b)                                 is
organised in any Core Country or in the Republic of Ireland or any other
jurisdiction approved by the Facility Agent (acting reasonably).

 

“Outstandings”
means the A1 Outstandings, the A2 Outstandings and the C Outstandings and
any amounts of interest accrued but unpaid in relation thereto.

 

“Overall Commitment”
means in relation to any Bank and the A1 Facility, the A2 Facility or the
C Facility (as the case may be):

 

(a)                                  the aggregate
Euro Amount of its Commitments in relation to such Facility; or

 

(b)                                 in
the case of any Swingline Bank which does not have any Commitments in relation
to such Facility, the aggregate Euro Amount of the Commitments in relation to
such Facility of a Bank which is its affiliate.

 

“Parent Company”
means the Target, any holding company of Target or any intermediate holding
company of the Parent.

 

59

 

“Parent Entity”
means any of Holdco, and any other person which is subsidiary of Holdco and of
which CCMGC is a subsidiary.

 

“Participating
Member State” means any member state of the European Communities
that adopts or has adopted the Euro as its lawful currency in accordance with
legislation of the European Community relating to Economic and Monetary Union.

 

“Permitted
Acquisition” means:

 

(a)                                  the
acquisition by purchase or otherwise of (x) all or any part of the
business or assets of any person or any business unit of any person or (y) shares
(or other evidence of beneficial ownership) of any person representing at least
85 per cent. of the shares (or other beneficial ownership interests) in
such person, provided that:

 

(i)                                     upon
giving effect to such acquisition (taking into account reasonable synergies
evidenced to the Facility Agent in reasonable detail), (x) the aggregate
consideration in respect of all of the acquisitions described in this
paragraph (a) (including cash and any Indebtedness for Borrowed Money
incurred or assumed in connection with such acquisitions but excluding any
equity of the Parent or any Parent Company, any proceeds of any issuances of
equity or any other increase in the share capital of the Parent or any Parent
Company which amount, in each case, is contributed to the Parent (the “Consideration”) does not exceed an aggregate amount equal to
€250,000,000 and (y) if the amount of Consideration for such acquisition
exceeds €25,000,000, the Parent provides to the Facility Agent such information
about the proposed acquisition as the Facility Agent (acting reasonably) may
require (including, without limitation, an accountant’s report) confirming,
among other things, the suitability of the proposed acquisition, its
compatibility with the existing business and that it is earnings enhancing; and

 

(ii)                                  in
the case of any acquisitions referred to in paragraph (i) above, (x) the
target of such acquisition has positive EBITDA, calculated on a pro forma basis
(including synergies) after giving effect to such acquisition (such calculation
to be made in a manner reasonably satisfactory to the Facility Agent and to be
evidenced by a certificate in form and substance reasonably satisfactory to the
Facility Agent signed by two Authorised Signatories of the Parent (one of whom
must be the finance director) and delivered to the Facility Agent (which shall
promptly deliver copies to each Bank) at least ten Business Days prior to the
consummation of such acquisition), (y) the target of such acquisition
carries on a similar line of business to the Group at the Closing Date and in a
country in which the Group carries on business at the Closing Date or in the
European Union or Norway, and (z) after giving effect to such acquisition,
no Event of Default or Potential Event of Default has occurred or is continuing
or shall occur as a result of such acquisition;

 

60

 

(b)                                 the
exchange of any asset (other than any asset comprising part of the Borrower
Asset Value of any Obligor) for any other assets of a similar value, in each
case over which a first priority security interest is granted in favour of the
Finance Parties (to the extent such asset(s) were subject to a similar (or
substantially similar) security interest under the Security Documents prior to
the date of exchange, and subject to any applicable limitations set out in
Clause 21.16 (Group Acceding Guarantors))
in respect of which the Facility Agent shall, if so requested by the Facility
Agent, have received a legal opinion in form and substance satisfactory to it
(acting reasonably);

 

(c)                                  any
acquisition made in relation to disposals permitted under paragraph (g) of
the definition of “Permitted Disposals”;

 

(d)                                 any
acquisition pursuant to and in accordance with the terms of the Finance
Documents;

 

(e)                                  any
acquisition necessary to consummate a Canadian Sale-Saleback Transaction; and

 

(f)                                    the
acquisitions expressly identified as such in the Disclosure Letter; and

 

(g)                                 the
assignment or transfer of any Shareholder Subordinated Loan to a member of the
Group (other than to the borrower(s) thereunder (or any successor(s) thereof));
and

 

(h)                                 any
acquisition described or referred to in the definition of Transactions.

 

“Permitted
Disposals” means:

 

(a)                                  the
sale or other disposal of surplus, obsolete or worn out property, whether now
owned or hereafter acquired, in the ordinary course of business;

 

(b)                                 the
sale, lease (whether operating or financial) or other disposal of any property
(including, without limitation, vehicles, equipment and inventory) in the
ordinary course of business (including, without limitation, the sale of
vehicles, revenue earning equipment or Equipment sold to a Vehicle
Manufacturer, Vehicle Dealer or through other customary disposal channels such
as auctions, brokered sales and sales to wholesalers and the sale of property
in connection with ordinary course adjustments in the territories allocated to
licensees and franchisees of Parent or any of its subsidiaries);

 

(c)                                  the
sale or discount without recourse or with limited recourse on arm’s length
terms (where the level and nature of such recourse is not unusual) of accounts
receivable or notes receivable (in each case, not comprising part of the
Borrower Asset Value of any Obligor) arising in the ordinary course of
business, or the conversion or exchange of accounts receivable into or for
notes receivable, in connection with the compromise or collection thereof and
not as a method of raising long term finance;

 

61

 

(d)                                 the
sale, transfer or discount of receivables on arm’s length terms pursuant to any
Permitted Securitisation, provided that the Take-Out Intercreditor/
Subordination Requirements shall at all times be satisfied with respect
thereto;

 

(e)                                  any
asset sales not contemplated by any other paragraph of this definition
provided that (i) the aggregate gross proceeds in cash or Cash Equivalents
for all such asset sales does not exceed €25,000,000 (or its equivalent) in any
Twelve Month Period, (ii) the non-cash portion of the consideration for
any such asset sale does not exceed 25 per cent. thereof, and (iii) an
amount equal to 100 per cent. of the Net Cash Proceeds of any such asset sale,
less any Reinvested Amount, is applied to reduce the Facilities in accordance
with Clause 13.3 (Mandatory Reduction of the
Facilities) and/or Clause 13.7 (Application
of Amounts Prepaid);

 

(f)                                    the
abandonment, sale or other disposal of patents, trademarks or other
intellectual property that are, in the reasonable judgement of the Parent, no
longer economically practicable to maintain or useful in the conduct of the
business of the Group, taken as a whole, and the licensing of intellectual
property in the ordinary course of business;

 

(g)                                 the
sale or other disposal of (i) an asset by any member of the Group to an
Obligor, (ii) an asset by any non-Obligor to any other non-Obligor or (iii) an
asset (other than shares and any assets comprising part of the Borrower Asset
Value of any Obligor except in the case of a disposal to a Take-Out Borrower)
by any Obligor to any non-Obligor, in the case of this clause (iii), sold or
disposed of on fair and reasonable terms in a maximum aggregate amount (which
amount shall in the case of assets other than real estate be calculated on the
basis of a value no lower than fair market value and in the case of real estate
be calculated on the basis of fair and reasonable terms) not exceeding €25,000,000
(or its equivalent) after the Closing Date (provided that such amount shall be
increased by (x) the amount of such assets disposed of pursuant to this
sub-paragraph (iii) that are subsequently returned to the relevant
Obligor and (y) the amount of such assets previously disposed of to a
non-Obligor that are held by such non-Obligor at the time it becomes an
Obligor) or (iv) any sale or disposal of shares (or equivalent ownership
interests) in a member of the Group to another member of the Group provided
that (A) to the extent that such member of the Group was a Guarantor prior
to the date of disposal, its guarantee and any security granted by it remain in
full force and effect following such disposal and (B) to the extent that
shares (or equivalent ownership interests) in such member of the Group were
charged or pledged prior to the date of disposal, such security remains in full
force and effect (or is replaced with substantially equivalent security in
respect of which the Facility Agent shall, if so requested by the Facility
Agent, have received a legal opinion in form and substance satisfactory to it
acting reasonably) following such disposal;

 

(h)                                 the
exchange of any asset (other than any asset comprising part of the Borrower
Asset Value of any Obligor) for any other assets of a similar value, in each
case over which a first priority security interest is granted in favour of the
Finance Parties (to the extent such asset(s) were subject to a similar (or
substantially similar) security interest under the Security Documents prior to 

 

62

the date of exchange, and subject to the limitations
set out in Clause 21.16 (Group Acceding Guarantors))
in respect of which the Facility Agent shall, if so requested by the Facility
Agent, have received a legal opinion in form and substance satisfactory to it
(acting reasonably);

 

(i)                                     any
transfer or other disposal described or referred to in the definition of
Transactions;

 

(j)                                     any
sale or any other disposition of any property or assets pursuant to a merger,
solvent reorganisation, consolidation or winding-up permitted in accordance
with Clause 22.10 (Mergers);

 

(k)                                  any
sale or disposal expressly identified as such in the Disclosure Letter;

 

(l)                                     any
sale or disposal necessary to consummate a Canadian Sale-Saleback Transaction;

 

(m)                               any
disposal of Vehicle Rental Concession Rights (provided that no such disposal
shall include any assets comprising any part of the Borrower Asset Value of any
Obligor);

 

(n)                                 any
sale or disposal of any Excluded Canadian Company; and

 

(o)                                 any
other sale or disposal of an asset or property on arm’s length terms provided
that the aggregate gross proceeds in cash or Cash Equivalents for all such
sales and disposals do not exceed €10,000,000 (or its equivalent) in any Twelve
Month Period, provided that all affected Borrowers remain in pro forma
compliance with the Borrowing Base Calculation requirements immediately
following any such disposal.

 

“Permitted
Distribution” means:

 

(a)                                  dividends,
distributions or payments in an amount sufficient from time to time (including
any applicable value added taxes which are due and payable at the time) to
enable payment, directly or indirectly, of:

 

(i)                                     all
amounts due from the Parent or any of its subsidiaries to any Parent Company in
accordance with the terms of the Hertz International Tax Sharing Agreement;

 

(ii)                                  reasonable
and necessary fees, costs and expenses (other than taxes) incurred by any
Parent Company in connection with (without duplication) or reasonably
incidental to (A) the registration, offering and exchange listing of its
shares or other securities, (B) compliance with applicable reporting rules and
regulations of any relevant governmental or regulatory bodies, (C) the indemnification
and reimbursement of, or in respect of directors’ or officers’ liability
insurance in relation to, directors, officers and employees of any Parent
Company and/or its subsidiaries relating to their serving in such capacity, (D) any
business, management, technical, logistical and administrative services and
functions provided by such Parent

 

63

 

Company
to the Parent and its subsidiaries (including, without limitation, any
accounting, legal, treasury, sales and marketing, information, communication,
reservations, pricing, forecasting, payment, settlement, travel agency,
customer and licensee relations, risk management, processing, billing, record
keeping, control, purchasing, supervising and training services and functions)
and (E) the establishment of any Parent Company, any Parent Company
maintaining its existence, non-executive directors’ fees, costs of shareholder
communications and meetings and legal expenses;

 

(iii)                               any
Acquisition Costs incurred by any Parent Company (x) on the Closing Date
and (y) thereafter;

 

(iv)                              any
amounts payable in connection with the repurchase, acquisition, directly or
indirectly, of any shares in the share capital of Holdco and/or any of its
subsidiaries and/or shares or other debt or equity securities of any entity
formed for the purpose of investing in Holdco and/or any of its subsidiaries or
any rights, options or units in respect thereof, from any Management Investors
or former Management Investors, or as otherwise contemplated by any Management
Subscription Agreement, for an aggregate purchase price not to exceed the Euro
Equivalent of US$20,000,000 from and after the Closing Date provided that such
aggregate cap shall be increased by (A) an amount equal to the Euro
Equivalent of US$5,000,000 on each anniversary of the Closing Date, commencing
on the first anniversary of the Closing Date, (B) an amount equal to the
proceeds of any resales or new issuances of shares and options to any
Management Investors, at any time after the initial issuances to any Management
Investors, together with the aggregate amount of deferred compensation owed by
any Parent Company to any Management Investor that shall thereafter have been
cancelled, waived or exchanged at any time after the initial issuances to any
thereof in connection with the grant to such Management Investor of the right
to receive or acquire shares of any Parent Company;

 

(v)                                 reasonable expenses
incurred by any Parent Company in connection with the provision of insurance
and insurance-related services and functions by such Parent Company or any of
its subsidiaries (other than Parent and its subsidiaries) to any Obligor or any
other member of the Group, which shall be provided for commercially reasonable
consideration determined in good faith by the management of such Parent Company
or the relevant subsidiary of such Parent Company providing such services or
functions; and

 

(vi)                              so long as
no Event of Default shall have occurred and is then continuing (or would
otherwise arise as a result of such dividend, distribution or payment), any
amounts payable in respect of obligations and liabilities incurred by any
Parent Company in the ordinary course of business not to exceed €5,000,000 in
the aggregate on and after the Closing Date; and

 

64

 

(b)                                 any dividends,
distributions or payments, when aggregated with the principal amount of the
intercompany loans made in accordance with paragraph (q) of the
definition of “Permitted Loans and Guarantees”,
do not exceed an aggregate amount equal to the sum of (x) so long as no
Event of Default shall have occurred and is then continuing (or would otherwise
arise as a result of such dividend, distribution or payment), the sum of the
Specified ECF Amounts, as determined with respect to each preceding Relevant
Period ended after the first anniversary of the Closing Date (provided that, in
each such case, the audited consolidated financial statements for such Relevant
Period shall have been delivered in accordance with Clause 20.1 (Annual Statements)) and (y) €100,000,000
(or its equivalent) (provided that such amount does not exceed the sum of cash
and Cash Equivalents of the members of the Group immediately after the Closing
Date after giving effect to the Transactions); and

 

(c)                                  (x) to the
extent that the Hertz Intercompany Loan is irrevocably repaid in cash, any
dividends, distributions or payments in an aggregate amount not exceeding the
net proceeds of such cash repayments to and including the date of such
contemplated dividend, distribution or payment or (y) any dividend or
distribution of assets comprising all or a portion of the Hertz Intercompany
Loan; and

 

(d)                                 so long as no Event
of Default shall have occurred and is then continuing (or would otherwise arise
as a result of such dividend, distribution or payment), the payment or
repayment of any Indebtedness for Borrowed Money under any Qualified
Shareholder Subordinated Loan,

 

provided
that in the case of paragraphs (a)(i), (a)(ii) (other than
paragraph (D) thereof), (a)(iii)(y) (other than Acquisition
Costs incurred with respect to the matters set forth in clause (b) of the
definition of “Transactions”) and
(a)(iv) (inclusive) above, if the relevant Parent Company shall own any
material assets other than the shares or other equity interests in the Parent
or another holding company of the Parent, the applicable amount which may be
paid as a cash dividend in accordance with the applicable aforementioned
paragraphs shall be limited to the reasonable and proportional share, as
determined by the Parent in its reasonable discretion (as certified by a senior
financial officer of the Parent to the Facility Agent from time to time, as
requested by the Facility Agent from time to time (acting reasonably)), of the
applicable expense, cost, liability or amount, as the case may be referred to
in the applicable aforementioned paragraph incurred by such Parent Company
relating or allocable to its direct or indirect ownership interest in the
Parent.

 

“Permitted
Encumbrance” means:

 

(a)                                  any Encumbrance
entered into pursuant to any of the Finance Documents or the B Bridge Finance
Documents;

 

65

 

(b)                                 any Encumbrance over
or affecting any asset acquired by a member of the Group after the Closing Date
and subject to which such asset is acquired, provided that:

 

(i)                                     such Encumbrance was
not created in contemplation of the acquisition of such asset by a member of
the Group; and

 

(ii)                                  the amount
thereby secured has not been increased in contemplation of, or since the date
of, the acquisition of such asset by a member of the Group;

 

(c)                                  any Encumbrance over
or affecting any asset of any person which becomes a member of the Group after
the Closing Date, where such Encumbrance is created prior to the date on which
such person becomes a member of the Group, provided that:

 

(i)                                     such Encumbrance was
not created in contemplation of such acquisition of such person; and

 

(ii)                                  the amount
thereby secured has not been increased in contemplation of, or since the date
of, the acquisition of such person;

 

(d)                                 any netting, set-off
or similar arrangement entered into by any member of the Group in the normal
course of its banking and other trading arrangements for the purpose of its
cash pooling arrangements or netting debit and credit balances of members of
the Group, provided that such Encumbrances do not at any time encumber any part
of the Eligible Cash or Eligible Cash Equivalents of any Obligor;

 

(e)                                  any title transfer or
retention of title arrangement entered into by any member of the Group in the
normal course of its business on the counterparty’s standard or usual terms;

 

(f)                                    any Encumbrance for
taxes not yet overdue or for the non-payment of taxes which are not material,
or which are being contested in good faith by appropriate proceedings which are
being diligently conducted provided that adequate reserves with respect thereto
are maintained on the books of the applicable member of the Group, in
accordance with the Applicable Accounting Principles;

 

(g)                                 any carriers’,
warehousemen’s, mechanics’, materialmen’s or repairmen’s liens or other similar
Encumbrances arising in the ordinary course of business which are not overdue
for a period of more than 60 days or which are being contested in good faith by
appropriate proceedings which are being diligently conducted;

 

(h)                                 any Encumbrances of
landlords or of mortgagees of landlords arising by operation of law or pursuant
to the terms of real property leases, provided that the rental payments secured
thereby are not yet due and payable;

 

66

 

(i)                                     any pledges, deposits
or other Encumbrances in connection with workers’ compensation, unemployment insurance,
other social security benefits or other insurance related obligations
(including, without limitation, pledges or deposits securing liability to
insurance carriers under insurance or self-insurance arrangements);

 

(j)                                     any Encumbrances
arising by reason of any judgment, decree or order of any court or other
governmental authority, if appropriate legal proceedings which may have been
duly initiated for the review of such judgment, decree or order are being
diligently prosecuted and shall not have been finally terminated or the period
within which such proceedings may be initiated shall not have expired;

 

(k)                                  any Encumbrances to
secure the performance of bids, trade contracts (other than Indebtedness for
Borrowed Money), obligations for utilities, leases, statutory obligations,
surety and appeal bonds, performance bonds, judgment and like bonds, and other
obligations of a similar nature incurred in the ordinary course of business
provided that such Encumbrances do not at any time encumber any property comprising
any part of the assets or property comprising the Borrower Fleet NBV of any
Obligor;

 

(l)                                     any Encumbrances
arising in relation to planning restrictions, easements, rights-of-way,
restrictions on the use of property, other similar encumbrances incurred in the
ordinary course of business and minor irregularities of title, which do not
materially interfere with the ordinary conduct of the business of the Group
taken as a whole;

 

(m)                               any Encumbrances
arising in relation to a Permitted Purchase Money Obligation referred to in
paragraph (n) of the definition of “Permitted
Indebtedness” in relation to the asset financed thereby and any
related rights and interests;

 

(n)                                 any Encumbrances
securing Indebtedness referred to in paragraph (e) of the definition of
“Permitted Indebtedness” incurred
to finance the purchase price of, or assumed in connection with, any such
Permitted Acquisition referred to therein, provided that (i) such
Encumbrances shall be created no later than the later of the date of such acquisition
or the date of the incurrence or assumption of such Indebtedness, and (ii) such
Encumbrances do not at any time encumber any property other than the property
financed by such Indebtedness and, in the case of Indebtedness assumed in
connection with any such acquisition, the property subject thereto immediately
prior to such acquisition;

 

(o)                                 any Encumbrances
securing guarantee or indemnity obligations permitted under paragraph (d) of
the definition of “Permitted Loans and
Guarantees” not exceeding (as to the Group) €15,000,000 (or its
equivalent) in aggregate amount at any time outstanding provided that such
Encumbrances do not at any time encumber any property comprising any part of
the Borrower Asset Value of any Obligor;

 

(p)                                 any Encumbrances
(including, without limitation, any put and call agreements) on (and limited
to) the equity of any Permitted Joint Venture,

 

67

 

including
any Encumbrances pursuant to the shareholders’ joint venture or similar arrangement
with respect to such joint venture or similar arrangement, securing Permitted
Project Borrowings otherwise permitted under the definition of “Permitted Indebtedness”;

 

(q)                                 any Encumbrances
securing guarantee or indemnity obligations permitted under paragraph (h) of
the definition of “Permitted Loans and
Guarantees” provided that such Encumbrances do not at any time
encumber any property comprising any part of the Borrower Asset Value of any
Obligor;

 

(r)                                    any Encumbrances
arising in relation to any Permitted Sale and Leaseback;

 

(s)                                  (x) any
Encumbrances granted by non-Obligors to secure indebtedness in respect of local
overdraft and similar working capital facilities permitted under
paragraph (o) of the definition of “Permitted Indebtedness” and (y) any
Encumbrances constituting (i) a charge over customer book debts (and
related customer receivables assets) granted by Hertz Australia Pty Limited to
HA Funding Pty Limited and (ii) a charge over customer book debts (and
related customer receivables assets) granted by Hertz Australia Pty Limited to
Westpac Banking Corporation to secure indebtedness in respect of local
overdraft and transactional bank facilities and similar working capital
facilities permitted under paragraph (o) of the definition of “Permitted
Indebtedness” in an aggregate principal amount not exceeding AUD$15,000,000 at
any time outstanding, together with any associated priority arrangements;

 

(t)                                    any Encumbrances on
or under, or arising out of or relating to, Vehicle Rental Concession Rights
provided that such Encumbrances do not at any time encumber any property
comprising any part of the Borrower Asset Value of any Obligor;

 

(u)                                 any Encumbrances
securing Indebtedness for Borrowed Money referred to in paragraph (s) of
the definition of “Permitted Indebtedness”
incurred on the property or shares of the applicable Take-Out Borrower subject
to the Take-Out Financing permitted thereunder, provided that (i) such
Encumbrances do not at any time encumber any property other than the property
of the Take-Out Borrower financed by such Indebtedness for Borrowed Money or
the shares of such Take-Out Borrower and (ii) the Take-Out
Intercreditor/Subordination Requirements shall be satisfied at all times;

 

(v)                                 any Encumbrances on
intellectual property provided that such Encumbrances result from the granting
of licences in the ordinary course of business of members of the Group to any
person to use such intellectual property;

 

(w)                               any Encumbrances on a
bank account, maintained by the Parent or any of its subsidiaries in the
ordinary course of business, in favour of the account bank solely as a result
of the customary general terms and conditions of such account bank;

 

(x)                                   any Encumbrances
securing Indebtedness for Borrowed Money permitted under clause (o) of the
definition of “Permitted Indebtedness”
provided that

 

68

 

such
Encumbrances do not at any time encumber any property comprising any part of
the Borrower Asset Value of any Obligor;

 

(y)                                 any Encumbrances securing
Indebtedness for Borrowed Money permitted under clause (u) of the
definition of “Permitted Indebtedness”
not exceeding AUD2,600,000 provided that such Encumbrances do not at any time
encumber any property comprising any part of the Borrower Asset Value of any
Obligor;

 

(z)                                   any Encumbrance
securing Indebtedness for Borrowed Money incurred by such Excluded Canadian
Company provided:

 

(i)                                     the
liabilities in respect of such Indebtedness for Borrowed Money are not directly
or indirectly the subject of a guarantee, indemnity or any other form of
assurance, undertaking or support from any member of the Group; and

 

(ii)                                  the person
or persons making such Indebtedness for Borrowed Money available has/have no
recourse whatsoever to any member of the Group for the repayment of or payment
of any sum relating to such Indebtedness for Borrowed Money other than to such
Excluded Canadian Company or to any member of the Group which is the owner of
any shares or other equity interests of such Permitted Joint Venture and then
only to the extent that such member of the Group has granted security over such
shares or other equity interests legally or beneficially owned by it; and

 

(aa)                            any other
Encumbrances provided that the aggregate fair market value of the assets thereby
encumbered does not, at any time, exceed €10,000,000 (or its equivalent).

 

“Permitted Euro Tranche” has the meaning
given to it in Clause 2.1(b) (Grant
of the Facilities).

 

“Permitted Hedging Transactions” means any
Hedging Transactions that are incurred for the purpose of fixing or hedging
interest or currency or commodity rates or prices or cashflows in the ordinary
course of business (it being understood that Hedging Transactions incurred for
the purpose of fixing or hedging interest rates with respect to, all or any
part of, the indebtedness arising under the Facilities shall be deemed to be in
the ordinary course of business) consistent with prudent business practice and
not incurred for speculative purposes.

 

“Permitted Holders” means:

 

(a)                                  any of the Equity
Investors, Management Investors, CD&R, Carlyle, Merrill Lynch and any of
their respective Affiliated Persons;

 

(b)                                 any investment fund
or vehicle managed, sponsored or advised by the CD&R, Carlyle, Merrill
Lynch or any affiliate thereof, and any Affiliated Person of or successor to
any such investment fund or vehicle;

 

69

 

(c)                                  any limited or
general partners of, or other investors in, any CD&R Investor, Carlyle
Investor or Merrill Lynch Investor or any Affiliated Person thereof, or any
such investment fund or vehicle;

 

(d)                                 any person acting in
the capacity of an underwriter in connection with a public or private offering
of Capital Stock of CCMGC or any Parent Entity.

 

“Permitted Indebtedness” means any Permitted
Loans and Guarantees that are in the nature of indebtedness and:

 

(a)                                  any indebtedness
arising under this Agreement or any other Finance Document and the B Bridge
Finance Documents;

 

(b)                                 any indebtedness
arising under the Shareholder Subordinated Loan Agreements;

 

(c)                                  any indebtedness of
any member of the Group under Permitted Hedging Transactions;

 

(d)                                 any indebtedness
arising pursuant to any Permitted Securitisation, provided that upon the
effectiveness of any Take-Out Financing, the Facilities and Outstandings shall
be reduced in accordance with Clause 13.3 (Mandatory Reduction of the Facilities) and/or
Clause 13.7 (Application of Amounts
Prepaid) to the extent (and only to the extent and not any further)
required by either of such Clauses;

 

(e)                                  any indebtedness
incurred or assumed in relation to a Permitted Acquisition up to a maximum
aggregate amount at any time outstanding of €50,000,000 (subject to the
limitations set out in the definition of “Permitted
Acquisitions”) and any refinancings, replacements, refundings,
renewals or extensions thereof on financial and other terms, in the reasonable
judgment of the Parent, no more onerous to the Parent or any of its
Subsidiaries in the aggregate than the financial and other terms of such
Indebtedness, provided that the amount of such indebtedness is not increased at
the time of such refinancing, replacements, refunding, renewal or extension
except by an amount equal to the reasonable fees and expenses incurred in
connection with such refinancing, refunding, renewal or extension;

 

(f)                                    any indebtedness of
any Obligor or any member of the Group in respect of a Permitted Sale and
Leaseback Transaction;

 

(g)                                 any indebtedness
arising from the honouring of a cheque, draft or similar instrument against
insufficient funds, provided that such indebtedness is extinguished within two
Business Days of its incurrence;

 

(h)                                 any indebtedness of
any Obligor (except the Swiss Obligor) to any member of the Group provided such
indebtedness is (x) unsecured and (y) subordinated if required by the
terms of the Intercreditor Deed;

 

(i)                                     any indebtedness of
any member of the Group pursuant to an Indirect SPV Investment;

 

70

 

(j)                                     any indebtedness of
any member of the Group that is not an Obligor to an Obligor provided that:

 

(i)                                     the indebtedness is
incurred in the ordinary course of business as part of working capital or cash
pooling arrangements with a maturity of less than 121 days; or

 

(ii)                                  the
indebtedness when aggregated with any other indebtedness incurred under this
paragraph (ii) and any Investment made after the Closing Date in
accordance with paragraph (l)(v) of the definition of “Permitted Investments” (without double
counting) does not exceed, during the period commencing on the Closing Date and
ending on the date falling 12 months after the Closing Date, €40,000,000 (or
its equivalent) at any one time outstanding (provided that the amount of
indebtedness outstanding will be reduced by (x) the amount repaid to the
Obligor and (y) the amount of such indebtedness owed by a non Obligor at
the time it becomes an Obligor); or

 

(iii)                               the
indebtedness is otherwise permitted under any other paragraph of the
definition of “Permitted Investments”;

 

(k)                                  any indebtedness of
any non-Obligor to any other non-Obligor;

 

(l)                                     any indebtedness to
the extent covered by a Letter of Credit or any other letter of credit for the
account of the relevant company pursuant to any line of credit or other
indebtedness pursuant to paragraph (o), (r) or (x) of the
definition of “Permitted Indebtedness”;

 

(m)                               any cash management
obligations and other indebtedness in respect of netting services, overdraft
protections, set-off arrangements and similar arrangements in each case arising
pursuant to applicable law or under standard business terms of any bank at
which any member of the Group maintains an overdraft, cash pooling or other
similar facility or arrangement;

 

(n)                                 any indebtedness of
the Group in relation to any Permitted Purchase Money Obligation provided that (x) except
as providing in immediately succeeding paragraph (y), such indebtedness
shall be limited to an aggregate limit at any one time outstanding not
exceeding €40,000,000 (or its equivalent), and (y) at any time that all of
the Commitments hereunder shall have been fully utilised, and for so long as no
Event of Default shall then have occurred and be continuing, additional
indebtedness in relation to any Permitted Purchase Money Obligations may be
incurred with respect to newly acquired vehicles and/or Equipment (provided,
further, that in all events that such vehicles and/or Equipment shall not
differ in any material respects, whether on an individual or on a combined
basis (as determined by the Facility Agent (acting reasonably)), from those included
in the definition of “Borrower Asset Value”
with respect to the Obligor which has acquired such assets).

 

(o)                                 any indebtedness in
respect of (x) local overdraft and transactional bank facilities and
similar working capital facilities (which, without limiting the generality of
the foregoing, in the case of the charge over customer book debts 

 

71

 

(and
related customer receivables assets) granted by Hertz Australia Pty Limited to
Westpac Banking Corporation includes bank guarantees and letters of credit;
overdraft facilities, financial market dealing facilities for the execution of
foreign exchange and interest rate hedging and the settlement of foreign
exchange trades; and tape negotiation authorities for payroll facilitation)
made available to members of the Group not exceeding €100,000,000 in aggregate
amount at any time outstanding provided that such outstanding amount shall be
reduced to €60,000,000 on each Settlement Date or within 3 Business Days thereafter
and (y) the Brazilian Overdraft Facility not exceeding the Brazilian
Overdraft Maximum Amount at any time outstanding;

 

(p)                                 any indebtedness
pursuant to the transactions described in paragraph (c) of the
definition of “Permitted Disposals”;

 

(q)                                 any indebtedness
expressly identified as such in the Disclosure Letter and, without duplication,
any Dutch Capital Lease Indebtedness and UK Capital Lease Indebtedness and any
refinancings, replacements, refundings, renewals or extensions thereof on
financial and other terms, in the reasonable judgment of the Parent, no more
onerous to the Parent or any of its Subsidiaries in the aggregate than the
financial and other terms of such Indebtedness, provided that (i) the
amount of such indebtedness is not increased at the time of such refinancing,
replacements, refunding, renewal or extension except by an amount equal to the
reasonable fees and expenses incurred in connection with such refinancing,
refunding, renewal or extension, (ii) unless specifically indicated
otherwise in the Disclosure Letter, there shall be no refinancing of such
indebtedness and (iii) with respect to indebtedness identified in such
Disclosure Letter between and/or among creditors and debtors which are, in each
case, any of Holdco and any of its subsidiaries and any related orphan entities
(whether or not affiliated to Holdco or any of its subsidiaries), no such
indebtedness will be refinanced by debt from third parties;

 

(r)                                    any indebtedness of
any member of the Group or any Obligor incurred pursuant to the Transactions;

 

(s)                                  any indebtedness of a
Take-Out Borrower incurred pursuant to its applicable Take-Out Financing,
provided that (x) the Take-Out Intercreditor/ Subordination Requirements
shall at all times be satisfied with respect thereto and (y) the Net Cash
Proceeds therefrom are applied pursuant to Clause 13.3 (Mandatory Reduction of the Facilities)
and/or Clause 13.7 (Application of
Amounts Prepaid);

 

(t)                                    any indebtedness in
respect of performance bonds, bid bonds, appeal bonds, surety bonds and similar
obligations and trade-related letters of credit;

 

(u)                                 any indebtedness
(including reimbursement obligations) of any Obligor organised in Australia
with respect to a letter of credit issued by Westpac Banking Corporation for
such Obligor’s account and which is existing as of the Closing Date in an
aggregate stated amount not exceeding AUD2,600,000;

 

72

 

(v)                                 any indebtedness
arising under, and in accordance with any Tax Sharing Agreement;

 

(w)                               any indebtedness
constituting Qualified Canadian Indebtedness; and

 

(x)                                  any
additional indebtedness of the Group (including, without limitation, Permitted
Project Borrowings) of up to an aggregate limit of €25,000,000 or its
equivalent in aggregate principal amount at any one time outstanding.

 

“Permitted
Investments” means:

 

(a)                                  any extension of
trade credit in the ordinary course of business;

 

(b)                                 any Investment in
Cash Equivalents;

 

(c)                                  any Investment in
notes receivable in connection with transactions described in paragraph (c) of
the definition of “Permitted Disposals”;

 

(d)                                 any Investments
constituting loans to officers, directors or employees of any member of the
Group (i) in the ordinary course of business for travel and entertainment
or relocation expenses, (ii) agreed between the Parent and the Facility
Agent, (iii) made after the Closing Date for other purposes, not to exceed
(as to all such loans) €15,000,000 (or its equivalent) at any one time
outstanding when aggregated with the amount of all guarantees at any one time
outstanding permitted pursuant to paragraph (d)(iii) of the
definition of “Permitted Loans and Guarantees”
at any time or (iv) relating to indemnification or reimbursement of any
officers, directors or employees in respect of liabilities relating to their
serving in any such capacity;

 

(e)                                  any Investment of any
member of the Group under Permitted Hedging Transactions;

 

(f)                                    any Investment which,
in the judgement of the Parent, is reasonably necessary in connection with, and
pursuant to the terms of a Take-Out Financing provided that, with respect to
any Take-Out Borrower, the aggregate amount of all such Investments shall not
exceed at any time an amount equal to (x) (A) the aggregate Borrower
Asset Value which would have been attributable to the assets and properties of
such Take-Out Borrower if such person had been a Borrower hereunder minus (B) the
aggregate outstanding amount of such Take-Out Financing, in each case at the
applicable date of determination, plus (y) returns on these Investments;

 

(g)                                 any Investments in
the nature of pledges or deposits with respect to leases or utilities provided
to third parties in the ordinary course of business or otherwise described in
paragraphs (d), (e), (g), (h), (i), (k), (l) or (o) of the
definition of “Permitted Encumbrances”;

 

(h)                                 any Investments
representing non-cash consideration received by any member of the Group in
connection with any asset sale or other disposal permitted under this
Agreement, provided that in the case of any asset disposal described in
paragraph (e) of the definition of “Permitted
Disposals” such non-cash

 

73

 

consideration constitutes not more than 25 per cent.
of the aggregate consideration received in connection with any such asset
disposal, and any such non-cash consideration received by any Obligor is
pledged to the Security Agent for the benefit of the Finance Parties pursuant
to the Security Documents (subject to the limitations set out in
Clause 21.16(b)) (Group Acceding Guarantors));

 

(i)                                     any
Investment representing evidence of indebtedness, securities or other property
received from customers or other persons in the ordinary course of business by
any member of the Group in connection with any bankruptcy proceeding or other
reorganisation of such customer or other person or as a result of foreclosure,
perfection or enforcement of any Encumbrance or exchange for evidences of
indebtedness, securities or other property of such customer or other person
held by such member of the Group;

 

(j)                                     any
Investments constituting Permitted Acquisitions;

 

(k)                                  any
Investments in any Obligor;

 

(l)                                     any
Investments by any Obligor in any member of the Group that is not an Obligor
provided that:

 

(i)                                    the
Investment is made in the ordinary course of business as part of working
capital or cash pooling arrangements with a maturity of less than 121 days; or

 

(ii)                                 the
Investment is made from the proceeds of (x) the issuance of cash common
equity by the Parent or (y) subordinated seller paper issued by the Parent
on terms and conditions reasonably satisfactory to the Facility Agent; or

 

(iii)                              the
Investment is made in exchange for property (other than any property comprising
any part of the Borrower Asset Value of any Obligor) of equivalent value over
which a first priority security interest is granted in favour of the Security
Agent for the benefit of the Finance Parties pursuant to the Security Documents
in respect of which the Facility Agent shall, if so requested by the Facility
Agent, have received a legal opinion in form and substance satisfactory to it
(acting reasonably); or

 

(iv)                             the
Investment is an Indirect SPV Investment; or

 

(v)                                 the
Investment when aggregated with any other Investment made after the Closing
Date under this paragraph (v) and any indebtedness incurred in
accordance with paragraph (j)(ii) of the definition of “Permitted Indebtedness” (without double counting) does not
exceed €40,000,000 (or its equivalent) at any time outstanding, provided that
the amounts of Investments outstanding will be reduced by (x) returns on
these Investments and (y) the amount of those Investments in a non-Obligor
outstanding at such time that it becomes an Obligor;

 

 

74

 

(m)                               any
Investments by any non-Obligor in any other non-Obligor;

 

(n)                                 any
Investments constituting any exchange of any asset for other assets of similar
value over which a first priority security interest is granted in favour of the
Finance Parties (to the extent such asset or assets were subject to a similar
security interest under the Security Documents prior to the date of exchange,
and subject to any applicable limitations set out in Clause 21.16(b) (Group Acceding Guarantors)) in respect of which the Facility
Agent shall, if so required by the Facility Agent, have received a legal
opinion in form and substance satisfactory to it (acting reasonably);

 

(o)                                 any
Investments consisting of, or arising out of or related to, relation to Vehicle
Rental Concession Rights;

 

(p)                                 any
Investments constituting loans to Management Investors of up to €5,000,000 (or
its equivalent) outstanding at any time in connection with the purchase by such
Management Investors, directly or indirectly, of the share capital of the
Target or any Parent Company; or

 

(q)                                 any
Investments expressly identified as such in the Disclosure Letter, pursuant to
the Transactions and consummated on, or reasonably contemporaneously with, the
Closing Date or contemplated by the Funds Flow Memorandum;

 

(r)                                    any
Investments consisting of the Hertz Intercompany Loan provided that the aggregate
principal amount thereof shall not at any time exceed the aggregate principal
amount thereof outstanding as of the Closing Date;

 

(s)                                  any
Investments arising under any Tax Sharing Agreement; and

 

(t)                                    any
Investments (including, without limitation, Permitted Joint Ventures) not
otherwise permitted by the preceding paragraphs not to exceed in the
aggregate of €40,000,000 (or its equivalent) at any time outstanding.

 

“Permitted Joint Venture”
means a joint venture or similar arrangement in respect of which no other
co-investor or other person has a greater legal or beneficial ownership
interest than one or more members of the Group.

 

“Permitted Loans and
Guarantees” means any Permitted Investments that are in the nature
of loans, advances or extensions of credit by any member of the Group and:

 

(a)                                  performance
Guarantees or Guarantees for performance, appeal, judgment and similar bonds,
or suretyship arrangements, all in the ordinary course of business;

 

(b)                                 any
Guarantee or other obligation to reimburse the CD&R Investors, Merrill
Lynch Investors or the Carlyle Investors or any officers, directors or
employees of any member of the Group in respect of liabilities relating to
their providing services to such member of the Group;

 

(c)                                  any
Guarantee or reimbursement obligations in respect of any Letters of Credit or
any other letters of credit issued for the account of the relevant member of
the Group pursuant to any line of credit or other indebtedness permitted 

 

75

 

pursuant to paragraphs (o), (q) or (x) of
the definition of “Permitted Indebtedness”;

 

(d)                                 any
Guarantee in respect of third-party loans and advances to officers, directors
or employees of any member of the Group (i) for travel and entertainment
expenses incurred in the ordinary course of business, (ii) for relocation
expenses incurred in the ordinary course of business or (iii) for any
other purpose and, in the case of this clause (iii), in an aggregate principal
amount (as to all such Guarantees), when aggregated with the amount of all
loans permitted pursuant to paragraph (d)(iii) of the definition of “Permitted Investments”, not to exceed €15,000,000 (or its
equivalent) outstanding at any time;

 

(e)                                  any
Guarantee constituting obligations to insurers required in connection with
worker’s compensation and other insurance coverage incurred in the ordinary
course of business;

 

(f)                                    any
Guarantee constituting obligations of any member of the Group under or in
respect of Permitted Hedging Transactions;

 

(g)                                 any
Guarantees given by any member of the Group of obligations of any other member
of the Group, which obligations are otherwise permitted under this Agreement;

 

(h)                                 any
Guarantee (including for the avoidance of doubt representations and warranties)
in connection with Permitted Disposals, including indemnification obligations
with respect to leases, and guarantees of collectability in respect of accounts
receivables or notes receivable for up to face value;

 

(i)                                     (w) any
Guarantees in the ordinary course of business and reasonably consistent with
past business practices (as reasonably determined in the judgement of the
Parent) (other than Guarantees in respect of Indebtedness for Borrowed Money), (x) any
Guarantees in connection with the construction or improvement of all or any
portion of a Public Facility to be used by any member of the Group in the
ordinary course of business, (y) any Guarantees required (in the good
faith determination of the Parent Borrower) in connection with Vehicle Rental
Concession Rights, or (z) any Guarantees of obligations of any other
member of the Group (other than any Take-Out Borrowers), which obligations are
otherwise permitted by this Agreement;

 

(j)                                     any
Guarantee arising in connection with a Permitted Acquisition with respect to
indebtedness permitted pursuant to paragraph (e) of the definition of
“Permitted Indebtedness”;

 

(k)                                  any
Guarantee incurred pursuant to this Agreement or otherwise in respect of
Permitted Indebtedness;

 

(l)                                     any
Guarantee in favour of banks to facilitate any netting, set-off or similar
arrangements entered into by a member of the Group in the ordinary course of
its banking and other trading arrangements for the purposes of cash pooling or
netting credit and debit balances of members of the Group;

 

76

 

(m)                               any
Guarantee constituting any indemnity or reimbursement obligation issued to or
in favour of any bank or financial institution in relation to any guarantee,
indemnity, bond, standby letter of credit or similar instrument issued by such
bank or financial institution in respect of commercial obligations of any
member of the Group arising in the ordinary course of business not otherwise
constituting Financial Indebtedness;

 

(n)                                 any
Guarantee constituting Permitted Indebtedness under paragraph (r) of
the definition thereof;

 

(o)                                 any
Guarantee in connection with up to an aggregate principal amount of €10,000,000
(or its equivalent) of Indebtedness for Borrowed Money outstanding at any time
incurred by any Management Investors in connection with any Management
Subscription Agreements or other purchases by them or capital stock of any
Parent Company (so long as such Parent Company applies the net cash proceeds of
such purchases to, directly or indirectly, make capital contributions to, or
purchase capital stock of, CCMGC or applies such proceeds to pay expenses,
taxes and other amounts incurred or payable by any Parent Company);

 

(p)                                 any
Guarantee reasonably necessary to consummate any Take-Out Financing;

 

(q)                                 any
intercompany loan (other than a loan of the proceeds of any Advance to a member
of the Group which is incorporated in (1) Belgium, at any time following
any Take-Out Financing and/or third party refinancing in whole (but not in
part) of the Belgian Euro Amounts or (2) Canada, at any time following any
Take-Out Financing and/or third party refinancing in whole (but not in part) of
the Canadian Advances), when aggregated with the dividends, distributions or
payments made in accordance with paragraph (b) of the definition of “Permitted Distribution” does not exceed an aggregate amount
equal to the sum of (x) so long as no Event of Default shall have occurred
and is then continuing (or would otherwise arise as a result of such dividend,
distribution or payment) the Specified ECF Amounts, as determined with respect
to each preceding Relevant Period ended after the Closing Date (provided that,
in each such case, the audited consolidated financial statements for each such
Relevant Period shall have been delivered in accordance with Clause 20.1 (Annual Statements)) and (y) €100,000,000 (or its
equivalent) (provided that such amount does not exceed the sum of cash and Cash
Equivalents of the members of the Group immediately after the Closing Date
after giving effect to the Transactions); and

 

(r)                                    any
Guarantee referred to in the definition of Transactions.

 

“Permitted Project
Borrowings” means any Indebtedness for Borrowed Money incurred by a
Permitted Joint Venture:

 

(a)                                  where
the liabilities of such Permitted Joint Venture in respect of such Indebtedness
for Borrowed Money are not directly or indirectly the subject of a guarantee,
indemnity or any other form of assurance, undertaking or support from any
member of the Group; and

 

77

 

(b)                                 in
respect of which the person or persons making such Indebtedness for Borrowed
Money available to such Permitted Joint Venture has/have no recourse whatsoever
to any member of the Group for the repayment of or payment of any sum relating to
such Indebtedness for Borrowed Money other than to such Permitted Joint Venture
or to any member of the Group which is the owner of any shares or other equity
interests of such Permitted Joint Venture and then only to the extent that such
member of the Group has granted security over such shares or other equity
interests legally or beneficially owned by it.

 

“Permitted Purchase Money
Obligation” means any Indebtedness for Borrowed Money of any member
of the Group incurred to finance or refinance the acquisition, leasing,
construction or improvement of (x) fixed or capital assets or (y) any
vehicles or Equipment which would have been included in the Borrower Asset
Value of any Obligor which acquired such assets, provided that such
Indebtedness for Borrowed Money (incurred with respect to any acquisition) is
incurred substantially simultaneously with such acquisition or within six
months after such acquisition or in connection with the refinancing thereof.

 

“Permitted Sale and
Leaseback” means:

 

(a)                                  a
sale and leaseback transaction by any member of the Group involving any asset
which such person is permitted pursuant to Clause 22.6 (Disposals) to dispose of; and

 

(b)                                 a
Canadian Sale-Saleback Transaction.

 

“Permitted Securitisation”
means, at any time in relation to a Borrower 
(or, if such Borrower is a Financeco, its Related Opco) under any
Facility, any transaction or series of related transactions providing for the
securitisation of (a) in the case of an A1 Borrower or A2 Borrower or its
Related Opco (as the case may be), any Core Country Fleet, Eligible Receivables
or other assets of such Borrower or its Related Opco (as the case may be) and (b) in
the case of a C Borrower or its Related Opco (as the case may be), any Core
Country Equipment Assets, Eligible Receivables or other assets of such Borrower
or its Related Opco (as the case may be) provided always that such
securitisation, if it does not relate to all or substantially all the assets
comprising the Borrowing Base of the relevant Borrower, shall be on terms
acceptable to the Facility Agent (acting reasonably).

 

“PMP” means a
professional market  party (professionele marktpartij) as defined in the Dutch
Supervision Act.

 

“Policy Guidelines”
means the 2005 Dutch Central Bank’s Policy Guidelines (issued in relation to
the Exemption Regulation) dated 29 December 2004 (Beleidsregel
2005 kernbegrippen markttoetreding en handhaving Wtk 1992) as
amended from time to time.

 

“Potential Event of Default”
means any event which but for the passage of time or the giving of notice
required under Clause 21 (Positive Covenants),
Clause 21.28(a) (Negative Covenants)
or Clause 23 (Events of Default)
or any combination thereof (as expressly provided in such Clauses) would
constitute an Event of Default.

 

78

 

“Prepayment Account”
means an interest bearing account in the name of the applicable Borrower with
the Security Agent (bearing interest at the market rate applicable at such time
to any such interest bearing accounts held with such bank) which is pledged,
charged or assigned to the Finance Parties represented by the Security Agent or
to the Security Agent pursuant to the Security Documents to secure all amounts
due under the Finance Documents (subject to the terms of the proviso to
Clause 21.16(b) (Group Acceding Guarantors))
and from which the only withdrawals which may be made by the applicable
Borrower are to repay or prepay amounts due to the Banks under this Agreement.

 

“Proportion”
means at any time in relation to a Bank and:

 

(a)                                  an
Advance to be made under any Facility or Tranche, the proportion borne by its
Available Commitment to the Available Facility, in each case in relation to the
relevant Facility or Tranche, immediately prior to the making of that Advance;
and

 

(b)                                 in
all other cases, the proportion borne by the aggregate of the Euro Amount of
its Commitments to the Euro Amount of the Total Commitments, in each case in
relation to the relevant Facility or Tranche (as the case may be) at such time.

 

“Public Facility”
(i) any airport, marine port, rail, subway, bus or other transit stop,
station or terminal, stadium, convention centre, or military camp, fort, post
or base or (ii) any other similar facility owned or operated by any nation
or government or political subdivision thereof, or agency, authority or other
instrumentality of any thereof, or other entity exercising regulatory,
administrative or other functions of or pertaining to government, or any
organisation of nations (including the United Nations, the European Union and
the North Atlantic Treaty Organisation).

 

“Public Facility Operator”
a person that grants or has the power to grant a Vehicle Rental Concession.

 

“Purchase Price”
means the Purchase Price (as such term is defined in the Acquisition Agreement).

 

“Qualified Canadian
Indebtedness” means unsecured subordinated Indebtedness for Borrowed
Money of an Obligor organised in Canada (or treated as a Canadian resident for
the purpose of the Income Tax Act (Canada)) to an Excluded Canadian Company,
issued pursuant to an agreement with substantially similar terms and conditions
to a Shareholder Subordinated Loan Agreement, so long as (i) such
Indebtedness is unsecured and is subordinated to the Outstandings and all
obligations under any Guarantee on a basis reasonably satisfactory to the
Facility Agent, (ii) such Indebtedness does not provide for any guarantee
or other support from the Parent or any subsidiary of the Parent, (iii) if
an Event of Default has occurred and is continuing, such Indebtedness may not
be paid, prepaid, exchanged or otherwise redeemed, (iv) such Indebtedness
does not have a maturity, mandatory put, mandatory redemption or other similar
provision or requirement or any required amortisation prior to the first
anniversary of the A/C Discharge Date (as defined in the Intercreditor
Agreement) and (v) such Indebtedness does not contain any covenants (other
than

 

79

 

periodic reporting requirements) or any events of
default (other than as a result of a payment default by the borrower in respect
of such Indebtedness).

 

“Qualified Shareholder
Subordinated Loan” means unsecured subordinated Indebtedness for
Borrowed Money issued pursuant to a Shareholder Subordinated Loan Agreement
incurred after the Closing Date so long as (i) such Indebtedness is
unsecured and is subordinated to the Outstandings and all obligations under any
Guarantee on a basis reasonably satisfactory to the Facility Agent, (ii) such
Indebtedness does not provide for any guarantee or other support from the
Parent or any subsidiary of the Parent, (iii) such Indebtedness does not
have any required amortisation, maturity, mandatory put, redemption, repayment,
or other similar provision or requirement, or any cash interest payment requirement,
in any case prior to the one year anniversary of the Final Maturity Date, and (iv) such
Indebtedness does not contain any covenants (other than periodic reporting
requirements) or any events of default (other than as a result of a payment
default by the borrower in respect of such Indebtedness).

 

“Qualified Vehicle
Manufacturer/Dealer Contract” means a Vehicle Manufacturer Buy-Back
Agreement, Vehicle Dealer Buy-Back Agreement or Vehicle Supply Agreement, as
the case may be, between a A1 Borrower and/or A2 Borrower, as the case may be,
and a Vehicle Manufacturer or Vehicle Dealer, as the case may be, in the
applicable Core Country of such A1 Borrower and/or A2 Borrower, as the case may
be, which provides for the purchase (whether or not following accession by the
applicable SPV to the Vehicle Manufacturer Buy-Back Agreement, Vehicle Dealer
Buy-Back Agreement or Vehicle Supply Agreement, as the case may be) of vehicles
in such Core Country by an SPV subject to and in accordance with the ABS Terms.

 

“Qualified Vehicle
Manufacturer/Dealer MOU” means a memorandum of understanding in
respect of a Vehicle Manufacturer Buy-Back Agreement, Vehicle Dealer Buy-Back
Agreement or Vehicle Supply Agreement (and, in each case, matters reasonably
incidental thereto), as the case may be, between a A1 Borrower and/or A2
Borrower, as the case may be, and a Vehicle Manufacturer or Vehicle Dealer, as
the case may be, in the Core Country of such A1 Borrower and/or A2 Borrower, as
the case may be, which acknowledges (subject to contract) the purchase of
vehicles in such Core Country by an SPV subject to and in accordance with the
ABS Terms.

 

“Qualifying Bank”
means:

 

(a)                                  in
relation to any French Borrower, a Finance Party which:

 

(i)                                     acts
for the purposes of this Agreement and the Finance Documents through a Facility
Office in France provided that (A) all payments owed to it under this
Agreement and under the Finance Documents flow exclusively through French bank
accounts and, as the case may be, exclusively through agents which have their
head office (siège social) in France and are acting from an office in France, (B) such
Finance Party takes into account all payments owed to it under this Agreement
and under the Finance Documents (except repayment of principal amounts) for the
calculation of its taxable income in France and (C) where such Finance
Party has its head office (siège social)

 

80

 

outside
France, provides certificates issued by the French tax authorities stating the
place of its French facility office and the place where such facility office is
subject to tax, in accordance with French administrative guidelines (D. adm. 5
I 1224, no 50, 1st December 1997);

 

(ii)                                  is a
Treaty Lender; or

 

(iii)                               is
exempt from withholding tax under French law;

 

(b)                                 in
relation to any Canadian Borrower, a Finance Party which:

 

(i)                                     acts
for the purposes of this Agreement and the Finance Documents through a Facility
Office in Canada provided that such Finance Party is (A) a resident of
Canada for the purposes of the Income Tax Act (Canada) or (B) an
authorised foreign bank within the meaning of the Income Tax Act (Canada) which
would receive all amounts paid or credited to it under this Agreement or under
the Finance Documents in respect of its Canadian banking business within the
meaning of such Act; or

 

(ii)                                  is
not liable for withholding tax pursuant to Part XIII of the Income Tax Act
(Canada) in respect of all amounts paid or credited to it under this Agreement
or under the Finance Documents;

 

(c)                                  in
relation to an Australian Borrower, a Finance Party which:

 

(i)                                     is
an Australian resident for Australian tax purposes and which does not derive or
derive in part any interest on an Advance or any fees payable in connection
with any Finance Document in carrying on business in a country outside
Australia at or through a “permanent establishment” in that country for the
purposes of the Australian Income Tax Assessment Act 1936 (Cth);

 

(ii)                                  is a
non-resident of Australia for Australian tax purposes and is not a limited
partner in a VCLP or AFOF and derives all interest on an Advance and all fees
payable in connection with any Finance Document in carrying on business in
Australia at or through a “permanent establishment” in Australia for the
purposes of the Australian Income Tax Assessment Act 1936 (Cth);

 

(iii)                               is a
Treaty Lender with respect to taxes imposed in Australia; or

 

(iv)                              makes
the Advance on being issued Loan Notes which have been, or will be, offered in
a manner which satisfies the requirements of section 128F of the Australian
Income Tax Assessment Act 1936 (Cth) such that section 128F applies to interest
paid, or any amount taken to consist of interest, in respect of such Loan
Notes;

 

(d)                                 in
relation to any Belgian Borrower:

 

81

 

(i)                             each
Finance Party to which the Belgian Borrower makes a payment of interest in
relation to an Advance made to such Borrower and which is:

 

(A)                                      entitled
to such payment in its capacity of beneficial owner; and

 

(B)                                        a
credit institution that is a resident for tax purposes in a country that has
entered into a double taxation agreement with Belgium that is in force at the
earlier of the interest attribution or interest payment date and that has not
allocated the Advance to a permanent establishment located in a country that
has not entered into a double taxation agreement with Belgium that is in force
at the earlier of the interest attribution or interest payment date and that is
not a member state of the European Economic Area at said date; or

 

(C)                                        a
credit institution that is a resident for tax purposes in a country that is a
member state of the European Economic Area at the earlier of the interest
attribution or interest payment date and that has not allocated the Advance to
a permanent establishment located in a country that is not a member state of
the European Economic Area at the earlier of the interest attribution or
interest payment date and that has not entered into a double taxation agreement
with Belgium that is in force at said date; or

 

(D)                                       a
credit institution located in Belgium as mentioned in the law of 22 March 1993
on the statute of and the supervision on credit institutions that has not
allocated the Advance to a permanent establishment located in a country that is
not a member state of the European Economic Area at the earlier of the interest
attribution or interest payment date and that has not entered into a double
taxation agreement with Belgium that is in force at said date; or

 

(E)                                         a
Treaty Lender;

 

(F)                                         a
company that is a resident for tax purposes of Belgium and that is a qualifying
professional investor as defined in article 105, 3° of the Royal Decree
executing the Belgian Corporate Income Tax Code; or

 

(H)                                       a
Belgian permanent establishment of a company that is not a resident for tax
purposes of Belgium that is a qualifying professional investor as defined in
article 105, 3° of the Royal Decree executing the Belgian Income Tax Code; or

 

82

 

(ii)                                 each
Finance Party to which the Belgian Borrower makes a payment not being interest
in relation to an Advance made to such Borrower and which is:

 

(A)                              entitled
to such payment in its capacity of beneficial owner; and

 

(B)                                a
Treaty Lender;

 

(e)                                  in
relation to any Borrower incorporated in the United Kingdom, at any time in
respect of a payment made hereunder or under the Finance Documents by or on
behalf of any Obligor on a participation in relation to an Advance, a Bank:

 

(i)                                    who
is beneficially entitled to and within the charge to United Kingdom corporation
tax as regards that payment and:

 

(A)                              if
the participation in that Advance was made by it, is a Bank which is a “bank”
(as defined for the purposes of section 349 of the Taxes Act); or

 

(B)                                if
the participation in that Advance was made by a different person, that person
was a “bank” (as defined for the purposes of section 349 of the Taxes Act) at
the time that Advance was made;

 

(ii)                                 who
is beneficially entitled to that payment and:

 

(A)                              is a
company resident in the United Kingdom for the purposes of the Taxes Act (the
first condition set out in section 349B of the Taxes Act);

 

(B)                                satisfies
one of the other conditions set out in subsections (2) or (6) of
section 349B of the Taxes Act;

 

(iii)                            who
is a building society as defined in Section 832(1) of the Taxes Act
and who is entitled to receive such payment without a deduction of tax imposed
by the United Kingdom pursuant to Section 477A(7) of the Taxes Act;
or

 

(iv)                             who
is a Treaty Lender (with respect to taxes imposed by the United Kingdom);

 

(f)                                    in
relation to a participation in an Advance made to a Borrower incorporated in
Spain or with respect to the application of Spanish law only, a Dutch Borrower
that is an Orphan Financeco, a Finance Party which is:

 

(i)                                   a
Spanish credit entity or financial credit establishment recorded in the Bank of
Spain to which the provisions set out in paragraph (C) of Article 59
of Royal Decree 1777/2004 of 30 July 2004 apply;

 

83

 

(ii)           a Spanish permanent
establishment of a non-Spanish financial entity with which that Finance Party’s
participation in that Advance is effectively connected, and to which the
provisions contained in the second paragraph of number 1 of Article 8
of Royal Decree 1776/2004 of 30 July 2004, apply;

 

(iii)          a resident for tax purposes
in a Member State of the European Union (other than Spain) or a permanent
establishment of such Finance Party located in a Member State of the European
Union (other than Spain) which in each case is not acting (in relation to that
participation in that Advance) through a permanent establishment in Spain and,
furthermore, not acting through a territory considered as a tax haven (under
Spanish law); or

 

(iv)          a Spanish asset securitisation
fund (Fondo de Titulización de Activos) to
which the provisions set out in paragraph (K) of Article 59 of
Royal Decree 1777/2004 of 30 July 2004 apply;

 

(g)                                 in
relation to an Italian Borrower, a Finance Party or Fee Recipient which is:

 

(i)            a credit institution with
its head office in Italy (x) duly authorised or licensed to carry out
banking activities by the Bank of Italy in compliance with the Italian Banking
Act and (y) granting a Facility for the purposes of the Finance Documents
through a Facility Office in Italy;

 

(ii)           a credit institution with
its head office in a European Union country (x) duly authorised or
licensed by its competent authority to carry out banking activities and acting
in Italy through a permanent establishment in compliance with the Italian
Banking Act to which facilities are granted under the Finance Documents are
effectively connected and (y) granting a Facility for the purposes of the
Finance Documents through a Facility Office in Italy; or

 

(iii)          a credit institution with
its head office in a country outside the European Union acting in Italy through
a permanent establishment (x) duly authorised or licensed to carry out
banking activities by the Bank of Italy in compliance with the Italian Banking
Act to which the Facilities granted under the Finance Documents are effectively
connected and (y) granting a facility for the purposes of the Finance
Documents through a Facility Office in Italy by the Bank of Italy in compliance
with the Italian Banking Act; and

 

which is the beneficial owner of all payments
received by it under the Finance Documents and in relation to such
payments  is either resident for tax
purposes in Italy or is subject to income tax in Italy as a non-Italian
resident entity under article 151 and article 152, paragraph 1, of Italian
Presidential Decree no. 917 of 1986 and all payment received are only
attributable to that permanent establishment;

 

84

 

(h)                                 in
relation to any German Borrower, a Finance Party which is beneficially entitled
to interest payable to that Finance Party in respect of an Advance under a
Finance Document or to any fees thereunder and which:

 

(i)            is German resident for
German tax purposes;

 

(ii)           has a branch or a permanent
establishment in Germany with which that Finance Party’s participation in an
Advance or fee is effectively connected; or

 

(iii)          is a Treaty Lender;

 

(i)                                     in
relation to any Swiss Borrower a Finance Party which is a financial institution
which is duly licensed as a bank under the law of its jurisdiction of
incorporation and which pursues genuine banking activities in the jurisdiction
of its lending office as referred to under the respective regulations of the
Swiss Federal Tax Administration, in particular under Section 3.b. of
Notes S-02.122.1 as well as under Section I.232 of Notes S-02.128;

 

(j)                                     in
relation to an Irish Borrower, a Finance Party which is:

 

(i)            licensed, pursuant to Section 9
of the Irish Central Bank Act 1971, to carry on banking business in Ireland and
whose facility office is located in Ireland and which is carrying on a bona
fide banking business in Ireland for the purposes of Section 246(3) of
the Irish Taxes Consolidation Act, 1997 (“TCA”);

 

(ii)           an authorised credit
institution under the terms of the Directive 2000/12/EC of March 2000 and
has duly established a branch in Ireland or has made all necessary
notifications to its home state competent authorities required thereunder in
relation to its intention to carry on banking business in Ireland and such
financial institution  carries on a bona
fide banking business in Ireland of the purposes of Section 246(3) of
the TCA and has its facility office located in Ireland;

 

(iii)          a body corporate resident in
a territory with which Ireland has a double taxation treaty or resident in a
member state of the European Communities (other than Ireland) provided such
company does not provide its Commitment through a branch or agency in Ireland;

 

(iv)          a body corporate which
advances money in the ordinary course of a trade which includes the lending of
money, provided that the interest is taken into account in computing the
trading income of that Finance Party, and which has complied wit the
notification requirements under Section 246(5) TCA;

 

(v)           a US company, provided that
the US company is incorporated in the US and subject to tax in the US on its
worldwide income provided such company does not provide its Commitment through
an Irish branch or agency;

 

85

 

(vi)          a US LLC provided that the
ultimate recipients of the interest fall within (a)(iii) of this
definition and that the loan is effected through the US LLC for market reasons
and not for tax avoidance purposes and that such US LLC does not provide its
Commitment through an Irish branch or agency; or

 

(vii)         a Treaty Lender with respect
to Ireland; and

 

(k)            in relation to any other
Borrower, any Finance Party.

 

“Quotation Date”
means, in relation to any period for which an interest rate is to be determined
hereunder, the day specified in the Timetable or, if not so specified, on which
quotations would ordinarily be given by the Reference Banks in the relevant
interbank market for deposits in the currency in relation to which such rate is
to be determined for delivery on the first day of that period, provided that,
if, for any such period, quotations would ordinarily be given on more than one
date, the Quotation Date for that period shall be the last of those dates.

 

“Rating
Agencies” means each of S&P and Moody’s and/or such other rating
agency as may be acceptable to the Facility Agent.

 

“Rebalancing
Advance” has the meaning given to it in Clause 4.1(f) (Utilisation Conditions).

 

“Rebate
Receivables” means, at any time and in relation to any A1 Borrower
or A2 Borrower (or, if such Borrower is a Financeco, its Related Opco), the
aggregate of all amounts owed by any Vehicle Manufacturer to such Borrower or
its Related Opco (as the case may be) with respect to any vehicle purchased by
such Borrower or its Related Opco (as the case may be) from such Vehicle
Manufacturer at such time (other than any Vehicle Dealer Receivables), provided
that such aggregate shall not include any amount which is subject to any
set-off or other deduction (other than at the election of such Borrower or its
Related Opco (as the case may be)) by such Vehicle Manufacturer against amounts
owed by such Borrower or its Related Opco (as the case may be) to such Vehicle
Manufacturer at such time.

 

“Receivables
Charge” means a first ranking security assignment (or equivalent
first ranking security interest) in respect of receivables in the agreed form
executed or to be executed in favour of the Finance Parties represented by the
Security Agent, as security for all the actual, contingent, present and/or
future obligations and liabilities of the relevant Borrower under or pursuant
to the Finance Documents.

 

“Reference Banks”
means:

 

(a)           in relation to any amount
denominated in any currency other than Australian Dollars or Canadian Dollars,
the principal Paris office of BNP Paribas and the principal London offices of
CALYON and The Royal Bank of Scotland plc;

 

(b)           in relation to an amount
denominated in Australian Dollars, the Australian Reference Banks; and

 

86

 

(c)                                  in relation to an
amount denominated in Canadian Dollars, the principal Toronto offices of The
Bank of Nova Scotia, Royal Bank of Canada and Canadian Imperial Bank of
Commerce,

 

and/or such other bank or banks as may from time to
time be agreed between the Parent and the Facility Agent.

 

“Register” has
the meaning given to it in Clause 36.9 (The Register).

 

“Reinvested Amount”
means with respect to any asset sale, that portion of the Net Cash Proceeds
thereof as shall be reinvested in the Group or subject to an irrevocable
investment commitment prior to the date falling 180 days after the receipt of
such Net Cash Proceeds (or, if longer, the period required by the Parent to
reinvest provided that such longer period has been approved by the Facility
Agent (acting reasonably)); provided that in respect of any asset sale or group
of related asset sales the proceeds of which exceed €5,000,000, the Parent
shall have delivered to the Facility Agent a certificate of an Authorised
Signatory of the Parent within one week following the date of such asset sale
confirming the details of such reinvestment with regard to the Net Cash
Proceeds in question.

 

“Related Opco”
means:

 

(a)                                  in relation to an
SPV at any time and from time to time, any Opco to which such SPV leases vehicles
or Equipment or with which such SPV enters into one or more conditional sale
agreements in respect of the vehicles or Equipment at the time; and

 

(b)                                 in relation to a
Financeco at any time and from time to time, each SPV and/or Opco which it
finances directly or, in relation to an SPV which is an Australian Borrower,
indirectly through Noteco.

 

“Relevant A Calculation
Date” means, in relation to an A1 Advance or an A2 Advance
(including, for the avoidance of doubt, any Rebalancing Advance) that was made
on:

 

(a)                                  the
Closing Date, the next First Calculation Date; and

 

(b)                                 a Settlement Date
occurring after the Closing Date, the next First Calculation Date or the next
Second Calculation Date (as determined by the Facility Agent from the Repayment
Date specified in the Utilisation Request).

 

“Relevant C Calculation
Date” means, in relation to a C Advance that was made on:

 

(a)                                  the
Closing Date, the next First Calculation Date; and

 

(b)                                 a Settlement Date
occurring after the Closing Date, the next First Calculation Date or the next
Second Calculation Date (as determined by the Facility Agent from the Repayment
Date specified in the Utilisation Request).

 

“Relevant Jurisdiction”
means, in relation to any Obligor, its jurisdiction of incorporation or
organisation.

 

87

 

“Relevant Maximum Amount”
means, as of any determination date, the aggregate of (i) the Euro Amount
of the Total A1 Commitments, (ii) the Euro Amount of the Total A2
Commitments and (iii) the Total C Commitments, in each case determined on
the last day of the last ended Relevant Period.

 

“Relevant Period”
means each period of twelve months ending on 31 December of each
calendar year.

 

“Relevant Tax”
means, in relation to any payment which falls to be made hereunder by an
Obligor (or by the Facility Agent in connection with any payment by an Obligor)
to a Finance Party, any taxes imposed by the laws of (a) the Relevant
Jurisdiction of such Obligor, (b) any other jurisdiction from which, or
through which, such payment is made, (c) any other jurisdiction, to the
taxation laws of which the relevant Obligor is at the time of such payment
subject to tax on a net income basis (whether by reason of residence for tax
purposes or otherwise), (d) any political sub-division of the Relevant
Jurisdiction of such Obligor, or any such other jurisdiction to which reference
is made in paragraph (b) or (c) above or (e) the European
Union or any successor thereto, in circumstances where such taxes apply to or
are imposed on taxpayers in the Relevant Jurisdiction of such Obligor, or any
such other jurisdiction to which reference is made in paragraph (b) or
(c) above but excluding in each case (x) any taxes imposed on or
calculated by reference to the overall net income of the relevant Finance Party
(or to an equivalent income or similar tax base), (y) any taxes imposed on
or calculated by reference to the overall net income of the Facility Office of
such Finance Party (or to an equivalent aggregate income or similar tax base),
and (z) any franchise taxes, branch taxes, taxes on doing business or
taxes imposed on the overall capital or net worth of such Finance Party and “Relevant Taxes” and cognate expressions shall be construed
accordingly.

 

“Repayment Date”
means, in relation to an Advance, a Swingline Advance or a Letter of Credit,
the last day of its Term.

 

“Reporting Date”
means (a) 15 December 2005 and (b) thereafter, the Specified
Business Day falling four London Business Days after each Calculation Date.

 

“Repeated Representations”
means each of the representations set out in Clause 19.1 (Status) to Clause 19.7 (No Material
Adverse Change) (inclusive) (other than Clause 19.1(c) (Status) (provided that the representations in
Clause 19.6 (Financial Statements) shall be
made as at the date of the Financial Statements in question), Clause 19.17
(Ranking), Clause 19.18 (Ownership of the Obligors), Clause 19.24 (Good Title to Assets), Clause 19.25 (US Government Regulations) and Clause 19.29 (Professional Market Party).

 

“Reporting Date”
means (a) 15 December 2005 and (b) thereafter, the Business Day
falling four Business Days after each Calculation Date.

 

“Required Quarterly
Information” means, in relation to any Financial Quarter of the
Parent:

 

(a)                                  a
consolidated balance sheet of the Group as at the last day of such Financial
Quarter;

 

88

 

(b)                                 a consolidated
profit and loss account of the Group for such Financial Quarter;

 

(c)                                  a consolidated
cash flow statement of the Group for such Financial Quarter;

 

(d)                                 a
statement of the total amount during such Financial Quarter of expenditure by
the Group during such period on property, plant, equipment and revenue earning
equipment which, in accordance with the Applicable Accounting Principles (extant
as at the date of this Agreement), are or should be included in “capital
expenditures”, net of the application of insurance monies in the reinstatement
or repair of assets in respect of which such insurance monies were attained;

 

(e)                                  a
management commentary, in reasonable detail, on each of items (b) and (c) referred
to above;

 

(f)                                    in
relation to items (b) and (c) above, a cumulative statement in
respect of the period commencing at the beginning of the current financial year
and ending on the last day of such Financial Quarter;

 

(g)                                 an up to date
list of Material Subsidiaries; and

 

(h)                                 a
certificate from a senior financial officer of the Parent, confirming that no
Event of Default or Potential Event of Default has occurred which is continuing
or setting out details of any Event of Default or Potential Event of Default
which is continuing and the steps being taken to remedy the same.”Resignation Notice” means a duly completed notice in the
form set out in Schedule 9 (Form of Resignation
Notice).

 

“Restricted Party”
means any person listed in the Annex to the Executive Order referred to in the
definition of “Anti-Terrorism Laws” or on the “Specially Designated Nationals
and Blocked Persons” list maintained by the Office of Foreign Assets Control of
the United States Department of the Treasury.

 

“Risk Vehicle”
means any vehicle not the subject of a Buy-Back Agreement.

 

“S&P”
means Standard & Poor’s Ratings Services (a division of The
McGraw-Hill Companies, Inc.) and any successor thereto.

 

“Sale”
means a disposal (whether in a single transaction or a series of related
transactions) of all or substantially all of the assets of the Group.

 

“Screen Rate”
means:

 

(a)                                  in
relation to LIBOR, the British Bankers’ Association Interest Settlement Rate
for the relevant currency and period displayed on the appropriate page of
the Telerate screen;

 

(b)                                 in
relation to EURIBOR, the percentage rate per annum determined by the Banking
Federation of the European Union for the relevant period displayed on the
appropriate page of the Telerate screen;

 

89

 

(c)                                  in
relation to the BA Rate, the rate per annum determined by the Canadian
Permitted Bank by reference to the average rate quoted on the Reuters Monitor
Screen (Page CDOR, or such other Page as may replace such Page on
such Screen for the purpose of displaying Canadian interbank bid rates for
Canadian Dollar bankers’ acceptances) applicable to Canadian Dollar bankers’
acceptances with a term comparable to the relevant Term and in the case of
paragraphs (b) and (c) of the definition of “BA Rate”, CORRA for the relevant Term; and

 

(d)                                 in
relation to BBSY, the rate per cent. per annum determined by the Facility Agent
which is equal to the average of “bid rate” quoted on the page entitled
“BBSY” of the Reuters Monitor System,

 

provided that if the agreed page is
replaced or service ceases to be available, the Agent may specify another page or
service displaying the appropriate rate after consultation with the Parent and
the Banks.

 

“Second
Calculation Date” means:

 

(a)                                  27 January 2006;
and

 

(b)                                 thereafter,
the last Friday of each calendar month.

 

“Secured Hedge Counterparty”
means any Bank or any affiliate of a Bank or Arranger which has entered into a
Permitted Hedging Transaction and which the Parent has agreed may share in the
benefit of the Security.

 

“Secured Moneys”
has the same meaning as in the Australian Security Trust Deed.

 

“Securities Demand”
means any demand by the Arrangers, at any time after the Closing Date, to the
Parent and the Coordinator pursuant to the Engagement Letter to commence any
Take-Out Financing.

 

“Security” means
the security from time to time constituted by or arising under the Security
Documents.

 

“Security Agent Account”
means in relation to a Borrower a bank account opened in the name of the
Security Agent (in its capacity as such) and referencing the Borrower, with a
bank acceptable to the Security Agent (acting reasonably) and located in the
Core Country of that Borrower (or if it is a Financeco, its Related Opco), from
which the Security Agent will facilitate the withdrawal of money to buy
vehicles or new Equipment (as appropriate) and to repay Advances and meet other
payment obligations under this Agreement.

 

“Security Documents”
means (a) the Initial Security Documents, (b) any security documents
required to be delivered pursuant to Clause 21.26 (Further
Assurances) or the provisions of any Security Document, (c) any
security documents required to be delivered by an Additional Borrower pursuant
to Clause 38 (Additional Borrowers)
or an Additional Guarantor pursuant to Clause 21.16 (Group
Acceding Guarantors) and Clause 39 (Additional
Guarantors, Resignation of Guarantors and Designated Obligors; Change of
Coordinator) and (d) any other document entered into by any

 

90

 

member of the Group, other Obligor or other person
creating or evidencing security for all or any part of the obligations of the
Obligors or any of them under the Finance Documents or any of them.

 

“Security Principles”
means the agreed principles in respect of the terms of the Security Documents,
as set forth in Schedule 18 (Security Principles).

 

“Seller” means
Ford Holdings LLC, a limited liability company organised under the laws of the
State of Delaware, and Ford Motor Company, a corporation incorporated under the
laws of the State of Delaware.

 

“Settlement Date”
means:

 

(a)                                  the Closing Date;

 

(b)                                 thereafter
and prior to the Final Maturity Date, the Specified Business Day falling three
Specified Business Days after each Information Date; and

 

(c)                                  the Final
Maturity Date.

 

“Shareholder Subordinated
Loan” means a loan made available pursuant to a Shareholder
Subordinated Loan Agreement.

 

“Shareholder Subordinated
Loan Agreements” means all loan agreements setting out the terms of
loans made by any Parent Company or any affiliate of a Parent Company (other
than a member of the Group or an Obligor) as lender, to any Obligor or any
member of the Group (other than any such loan which is assigned or transferred
by such lender to a member of the Group (other than to the borrower(s) thereunder
(or any successor(s) thereof))), provided that all such loans shall be
(and remain) subordinated (or, in the case of any such loans existing as of the
Closing Date, within 90 days after the Closing Date) pursuant to the
Intercreditor Deed or otherwise on terms reasonably acceptable to the Facility
Agent.

 

“Shares” means
the issued shares in the capital of the Target at any time.

 

“Specified
Business Day” means:

 

(a)                                  in
relation to the Information Date, the Notification Date and the Reporting Date,
a day (other than a Saturday or a Sunday) on which banks generally are open for
business in London and Paris; and

 

(b)                                 in
relation to the Settlement Date and the Utilisation Date, a day (other than a
Saturday or a Sunday) on which banks generally are open for business in London
and Paris and in the jurisdiction of organisation of the relevant Borrower.

 

“Specified ECF Amount”
means, for any Relevant Period ended on or after the first anniversary of the
Closing Date (provided that the audited consolidated financial statements for
such Relevant Period shall have been delivered in accordance with
Clause 20.1 (Annual Statements)), an amount
determined as follows:

 

91

 

(a)                                  at
any time that Take-Out Financings have been completed in an aggregate amount
equal to 50% or more of the Initial Maximum Amount, as determined on the last
day of that Relevant Period, a percentage of Excess Cash Flow equal to the
ratio (calculated as a percentage) of (x) the aggregate Euro Amount of the
Take-Out Financing completed on such date with respect to the A1 Facility, the
A2 Facility and the C Facility to (y) the Relevant Maximum Amount; and

 

(b)                                 at any
other time, zero.

 

“Specified ECF Amount
Certificate” means a duly completed certificate in the form set out
in Schedule 23 (Form of Specified ECF
Amount Certificate) signed by the chief financial officer of the
Parent.

 

“Spot Rate of
Exchange” means at any date of determination thereof:

 

(a)                                  with
respect to any currency to be converted into any currency other than Euro, the
spot rate of exchange in London that appears on the display page applicable
to such currency on the Telerate system; and

 

(b)                                 with
respect to any currency to be converted into Euro, the spot rate of exchange in
London that appears on Reuters ECB page 37 at or about 2:15 pm CET on the
Telerate system,

 

in each case, as at such date of determination, or
such other page as may replace such page for the purpose of
displaying the spot rate of exchange in London, provided that if there shall at
any time no longer exist such a page, the spot rate of exchange shall be
determined by reference to another similar rate publishing service selected by
the Facility Agent and, if no such similar rate publishing service is
available, by reference to the published rate of the Facility Agent in effect
at such date for similar commercial transactions.

 

“SPV”
means in relation to any Facility, Australian Orphan SPV and any person that:

 

(a)                                  is
organised as a special purpose company, partnership or other legal person and
satisfies the “bankruptcy remote” criteria of each Rating Agency;

 

(b)                                 is
formed principally for the purpose of (i) advancing credit to (or otherwise
financing) or holding interests in and capitalising an Opco in relation to such
Facility, (ii) leasing vehicles or Equipment to an Opco in relation to
such Facility, (iii) purchasing and selling (conditionally or otherwise)
vehicles or Equipment or entering into one or more conditional sales
arrangements in relation to vehicles or Equipment with an Opco and/or (iv) becoming
an Eligible Borrower;

 

(c)                                  save
in the case of an Orphan SPV, is a direct or indirect subsidiary of Holdco; and

 

(d)                                 save
in the case of an Orphan SPV, is organised in (i) a Core Country in
relation to such Facility, (ii) the Republic of Ireland or, if its Related
Opco is organised in Canada, the USA or (iii) any other jurisdiction
satisfactory to the 

 

92

 

Facility Agent (acting
reasonably), provided if such SPV is not an Operational SPV then such person
(other than the Coordinator) shall be organised in the same jurisdiction as its
Related Opco unless:

 

(A)                              such
person is organised in a country in the European Union; or

 

(B)           such person is organised in
any other jurisdiction satisfactory to the Facility Agent (acting reasonably).

 

“SPV Collection Account”
means an interest bearing account or accounts (as the same may be redesignated,
substituted or replaced from time to time):

 

(a)                                  held
by the relevant SPV in its jurisdiction of incorporation or, in the case of an
SPV incorporated in Ireland, held in Switzerland or Germany (or in either case,
such other jurisdiction as the Facility Agent may agree); and

 

(b)                                 as
notified to the Facility Agent in writing by the relevant SPV, as an SPV
Collection Account.

 

“SPV Disbursement Account”
means an interest bearing account or accounts (as the same may be redesignated,
substituted or replaced from time to time):

 

(a)                                  held
by the relevant SPV in its jurisdiction of incorporation or, in the case of an
SPV incorporated in Ireland, held in Switzerland or Germany (or in either case,
such other jurisdiction as the Facility Agent may agree); and

 

(b)                                 as
notified to the Facility Agent in writing by the relevant SPV, as an SPV
Disbursement Account.

 

“SPV VAT Account” means an
interest bearing account or accounts (as the same may be redesignated,
substituted or replaced from time to time):

 

(a)                                  held
by the relevant SPV in its jurisdiction of incorporation or, in the case of an
SPV incorporated in Ireland, held in Switzerland or Germany (or in either case,
such other jurisdiction as the Facility Agent may agree); and

 

(b)                                 as
notified to the Facility Agent in writing by the relevant SPV, as an SPV VAT
Account.

 

“Step-Up Margin”
means, in relation to an A1 Advance (including any A1 Swingline Advance) or an
A2 Advance (including any A2 Swingline Advance) made to any A1 Borrower or A2
Borrower, as determined on the Relevant A Calculation Date, at any time on or
after the Closing Date:

 

(a)                                  for each Borrower (other than any
Belgian/Canadian Borrower), up to but excluding December 21, 2007, in
relation to any A1 Advance or A2 Advance made to such Borrower, 0.50 per cent.
per annum (in the case of an A1 Advance) or 0.75 per cent. per annum (in the
case of an A2 Advance); or

 

(b)                                 for each Borrower (other than any
Belgian/Canadian Borrower), from and including December 21, 2007 and
thereafter, and, for each Belgian/Canadian 

 

93

 

Borrower, at any time, in relation to any A1
Advance or A2 Advance made to such Borrower, the aggregate of:

 

(i)            where such Borrower is an
SPV, the sum of (A) 0.50 per cent. per annum (in the case of an A1
Advance) or 0.75 per cent. per annum (in the case of an A2 Advance) and (B) 0.50
per cent. per annum multiplied by the ratio (calculated as a percentage) of (x) the
Net Book Value of such Borrower’s Core Country Fleet comprised of C Rated
Vehicles (as defined above) to (y) such Borrower’s Borrower Fleet NBV; or

 

(ii)           where such Borrower is not
an SPV, the sum of (A) 1.00 per cent. per annum (in the case of the A1
Facility) or 1.25 per cent. per annum in the case of the A2 Facility and (B) 0.75
per cent. per annum multiplied by the ratio (calculated as a percentage) of (x) such
Borrower’s Core Country Fleet comprised of C Rated Vehicles (as defined above)
to (y) such Borrower’s Borrower Fleet NBV.

 

“Sterling Tranche”
means the A1 Sterling Tranche or the A2 Sterling Tranche, as the case may be.

 

“Swingline Available
Borrowing Base” has the meaning given to it in Clause 5.2(a) (Delivery of a Utilisation Notice for Swingline Advances).

 

“Swingline Bank”
means:

 

(a)                                  when
designated “A1”:

 

(i)            a Bank listed in
Schedule 1 (The Banks and their Commitments) as an A1 Swingline Bank; or

 

(ii)           any other person that
becomes an A1 Swingline Bank after the date of this Agreement in accordance
with Clause 36.3 (Assignments and Transfers
by Banks);

 

(b)                                 when
designated “A2”:

 

(i)            a Bank listed in
Schedule 1 (The Banks and their Commitments) as an A2
Swingline Bank; or

 

(ii)           any other person that
becomes an A2 Swingline Bank after the date of this Agreement in accordance
with Clause 36.3 (Assignments and Transfers
by Banks);

 

(c)                                  when designated “C”:

 

(i)            a Bank listed in Schedule 1
(The Bank and their Commitments) as a C Swingline Bank; or

 

(ii)           any other person that
becomes a C Swingline Bank after the date of this Agreement in accordance with
Clause 36.3 (Assignments and Transfers by Banks);
and

 

94

 

(d)                                 without
any such designation, an “A1 Swingline Bank”;
an “A2 Swingline Bank”, and/or a “C Swingline Bank”, as the context requires,

 

and provided in each case that such Bank has not
ceased to be a party in accordance with the terms of this Agreement.

 

“Swingline Facility”
means:

 

(a)                                  when
designated “A1”, the multi-currency swingline
loan facility made available by the A1 Swingline Banks as described in
Clause 6.1(a) (Swingline);

 

(b)                                 when
designated “A2”, the multi-currency swingline
loan facility made available by the A2 Swingline Banks as described in
Clause 6.1(b) (Swingline);

 

(c)                                  when
designated “C”, the multi-currency swingline
loan facility made available by the C Swingline Banks under this Agreement as
described in Clause 6.1(c) (Swingline); and

 

(d)                                 without
any such designation, an “A1 Swingline Facility”,
an “A2 Swingline Facility” and/or a “C Swingline Facility”, as the context requires.

 

“Swingline Rate”
means, in respect of any Term applicable to a Swingline Advance (other than a
Canadian Swingline Advance) to be made in any currency, the weighted average of
the quotations offered by each Bank participating in such Swingline Advance (as
notified to the Facility Agent) for deposits in such currency for such Term (weighted
in proportion to the percentage participation of such Bank in such Swingline
Advance) pursuant to Clause 10.2(b) (Interest
Rate Determination).

 

“Swiss Borrower”
means any Borrower that is resident or deemed to be resident in Switzerland for
the purposes of the Swiss Federal Withholding Tax Act, in respect of any
payments made by such Borrower hereunder or under the Finance Documents.

 

“Swiss Franc Tranche”
means the A1 Swiss Franc Tranche or the A2 Swiss Tranche, as the case may be.

 

“Swiss Guarantor”
has the meaning given to it in Clause 24.16(a) (Swiss
Guarantors).

 

“Swiss Obligor”
means any Obligor that is resident or deemed to be resident in Switzerland for
the purposes of the Swiss Federal Withholding Tax Act.

 

“Swiss Withholding Tax”
has the meaning given to it in Clause 24.16(a)(ii) (Swiss Guarantors).

 

“Take-Out Borrower”
means a Borrower which is itself, or whose Related Opco, incurs Indebtedness
under a Take-Out Financing.

 

“Take-Out Financing”
means any asset-backed financing comprised of the issuance of securities backed
by assets that include, without limitation, leasing and conditional sales
arrangements and equivalents and those that would otherwise have formed part of
the Borrower Asset Value (including, without limitation and for the avoidance
of doubt, any Permitted Securitisation backed by assets that would otherwise
have formed part

 

95

 

of the Borrower Asset Value) or any funding via a
commercial paper conduit backed by assets that include, without limitation,
leasing and conditional sales arrangements and equivalents and those that would
otherwise have formed part of the Borrower Asset Value or any other type of
financing backed by assets that would otherwise have formed part of the Borrower
Asset Value (including, without limitation, leasing and conditional sales
arrangements and equivalents).

 

“Take-Out Financing Amount”
means, with respect to a Take-Out Borrower, the aggregate principal amount of
the indebtedness referred to in paragraph (s) of the definition of “Permitted Indebtedness” incurred with respect to a Take-Out
Financing applicable to such Take-Out Borrower and applied to the repayment of
the Outstandings of such Take-Out Borrower to the extent required by
Clause 13.3 (Mandatory Reduction of the Facilities).

 

“Take-Out
Intercreditor/Subordination Requirements” means:

 

(a)                                  the
execution and delivery to the Security Agent by the Take-Out Borrowers, all
other applicable subsidiaries of the Parent and the applicable financing parties
(including, without limitation, any trustee, paying agent or security agent for
and on behalf of any lenders, noteholders or other finance parties) providing
the extensions of credit pursuant to the Take-Out Financing, of the following
documents each in form and substance satisfactory to the Facility Agent (acting
reasonably):

 

(i)            appropriate lien releases
and/or lien subordination agreements, as determined by the Security Agent
(acting reasonably), in either case solely with respect to the item or items of
equipment or other assets subject to the Encumbrances created pursuant to the
Take-Out Financing, on terms and conditions satisfactory to the Security Agent
(acting reasonably),

 

(ii)           an intercreditor agreement
(the “Take-Out Intercreditor Agreement”) with
respect to the Take-Out Financing and the Take-Out Residual Outstandings,
together with such other guarantee, collateral and security documents as may be
determined by the Security Agent (acting reasonably); and

 

(iii)          such additional agreements, documents
and certificates as may be required by the Security Agent (acting reasonably);

 

(b)                                 the
delivery of executed legal opinions of local counsel in the applicable
jurisdictions with respect to collateral, intercreditor and related security
matters in connection with the Take-Out Financing and the matters contemplated
in immediately preceding paragraph;

 

(c)                                  at
the time of the incurrence of such Take-Out Financing (and the Encumbrances
incurred in connection therewith), both before and after giving effect thereto,
no Event of Default shall have occurred and be continuing; and

 

96

 

(d)                                 with
respect to the applicable Take-Out Financing (and the proceeds thereof), the
Facilities and Outstandings shall be reduced in accordance with
Clause 13.3 (Mandatory Reduction of the Facilities)
to the extent (and only to the extent and not any further) required thereby.

 

“Take-Out Residual
Outstandings” means, with respect to a Take-Out Borrower, the
Outstandings of such Take-Out Borrower which shall remain after application of
the Take-Out Financing Amount in accordance with Clause 13.3 (Mandatory Reduction of the Facilities).

 

“Target” means
The Hertz Corporation, a corporation incorporated under the laws of the State
of Delaware.

 

“TARGET” means
Trans-European Automated Real-Time Gross settlement Express Transfer payment
system.

 

“TARGET Day”
means any day on which TARGET is open for settlement of payment in Euro.

 

“Target Group”
means Target and its subsidiaries from time to time.

 

“Taxes Act”
means the Income and Corporation Taxes Act 1988 of the United Kingdom.

 

“Tax Sharing Agreement”
means (a) the Hertz International Tax Sharing Agreement, (b) any
other tax sharing arrangement in respect of any affiliated group of which any
member of the Group was or is, or was or is required to be, a member for any
tax year, and of which the Target or any of its subsidiaries was or is, or was
or is required to be, the common parent for purposes of paying taxes or filing
a tax return, the terms of which provide that amounts payable by any member of
the Group pursuant to such arrangement shall be limited to the amount which
would otherwise have been paid or would be payable by such member of the Group
calculated on a standalone basis if such member had been the taxpayer or (c) any
other arrangement with respect to group relief.

 

“Term” means,
save as otherwise provided herein, in relation to an Advance or Letter of
Credit, a period beginning on the Utilisation Date for such Advance or Letter
of Credit and ending on:

 

(a)                                  in
the case of an A1 Advance or an A2 Advance the first Settlement Date to occur
following the Relevant A Calculation Date, provided that if any such A1
Advance or an A2 Advance is a Rebalancing Advance, the Term shall end on the
first Settlement Date to occur following the date upon which the Rebalancing
Advance is made;

 

(b)                                 in
the case of a C Advance, the first Settlement Date to occur following the
Relevant C Calculation Date;

 

97

 

(c)                                  in
the case of a Swingline Advance in respect of which:

 

(i)                                     an
Asset Report was delivered pursuant to Clause 5.2(a) (Delivery of a Utilisation Notice for Swingline Advances),
the first Settlement Date to occur following the next Calculation Date; and

 

(ii)                                  an
Asset Report was not required to be delivered pursuant to Clause 5.2(a) (Delivery of a Utilisation Notice for Swingline Advances) the
first Settlement Date to occur following the Utilisation Date relating to such
Swingline Advance, provided that if any such Swingline Advance is made
after the date on which a Utilisation Notice for any Advance (other than a
Swingline Advance) to be made on the first succeeding Settlement Date is
required to be delivered pursuant to the terms of this Agreement, then the term
of such Swingline Advance shall end on the second succeeding Settlement Date
following the Utilisation Date relating to such Swingline Advance; and

 

(d)                                 in
the case of a Letter of Credit, the period from its Utilisation Date until its
Expiry Date.

 

“Timetable”
means the timetable set out in Schedule 15 (Timetable)
that sets forth the number of days notice that must be provided prior to
certain events including utilisations, determining each Bank’s participations
in Advances and Letters of Credit and fixing of LIBOR, EURIBOR, BBSY, the BA
Rate, the relevant Swingline Rate or the Canadian Swingline Rate.

 

“Total A1 Borrowing Base”
means, as at any Calculation Date, the aggregate of:

 

(a)                                  A1
Advance Rate multiplied by the aggregate Euro Amount of the Borrower Asset
Value of all the A1 Borrowers as at such Calculation Date; minus

 

(b)                                 the
Excess Risk Vehicle Haircut (if any); minus

 

(c)                                  in
the case of any Advance under the A1 Australian Dollar Tranche or any A1
Swingline Advance made in Australian Dollars only, the A1 Australian Dollar
Reserve Amount; plus

 

(d)                                 87.5
per cent. of the Eligible Cash and Eligible Cash Equivalents of all A1
Borrowers and all A2 Borrowers (or, if such Borrower is a Financeco, its
Related Opco),

 

in each case, as at such Calculation Date.

 

“Total  A1 Commitments” means the aggregate of the A1 Commitments.

 

“Total A1 Swingline
Commitments” means the aggregate of the A1 Swingline Commitments.

 

98

 

“Total A2 Borrowing Base”
means, as at any Calculation Date, the aggregate of:

 

(a)                                  A2
Advance Rate multiplied by the aggregate Euro Amount of the Borrower Asset
Value of all the A2 Borrowers as at such Calculation Date; minus

 

(b)                                 an
amount equal to the difference (if positive) between (i) the aggregate
outstanding amount of the UK Capital Lease Indebtedness with respect to the
Excluded UK Vehicles of all A1 Borrowers and A2 Borrowers and (ii) the
aggregate amount of the Borrower Fleet NBV of all A1 Borrowers and A2 Borrowers
(without duplication) that would have been attributable to the Excluded UK
Vehicles of such Borrowers if such Excluded UK Vehicles had been included in
the determination of the Borrower Fleet NBV of the respective Borrowers; minus

 

(c)                                  the
Excess Risk Vehicle Haircut (if any); plus

 

(d)                                 an
amount equal to 12.5 per cent. of the Eligible Cash and Eligible Cash
Equivalents of all A1 Borrowers and all A2 Borrowers (or if such Borrower is a
Financeco, its Related Opco),

 

in each case, as at such Calculation Date.

 

“Total A2 Commitments”
means the aggregate of the A2 Commitments.

 

“Total A2 Swingline
Commitments” means the aggregate of the A2 Swingline Commitments.

 

“Total B
Borrowing Base” means, as at any Calculation Date, the aggregate of:

 

(a)                                  the
B Advance Rate multiplied by the Borrower Asset Value of all the B Borrowers as
at such Calculation Date; plus

 

(b)                                 the
Eligible Cash and Eligible Cash Equivalents of all B Borrowers,

 

in each case, as at such
Calculation Date.

 

“Total C
Borrowing Base” means, as at any Calculation Date, the aggregate of:

 

(a)                                  C
Advance Rate multiplied by the Borrower Asset Value of all the C Borrowers, as
at such Calculation Date; and

 

(b)           100 per cent. of the
Eligible Cash and Eligible Cash Equivalents of all the C Borrowers (or if such
Borrower is a Financeco, its Related Opco) other than any Take-Out Borrower or
any C Borrower that is also an A1 Borrower or an A2 Borrower on such
Calculation Date.

 

“Total C Commitments”
means the aggregate of the C Commitments.

 

“Total C Swingline Commitments”
means the aggregate of the C Swingline Commitments.

 

99

 

“Total Commitments”
means the aggregate of the Total A1 Commitments, the Total A2 Commitments and
the Total C Commitments.

 

“Tranche” means
any A1 Tranche and/or A2 Tranche, as the context may require.

 

“Transactions”
means:

 

(a)                                  the
Acquisition and the other transactions contemplated by the Acquisition
Agreement;

 

(b)                                 the
entry into of the Finance Documents and the B Bridge Finance Documents, the incurrence
of Indebtedness thereunder and the other transactions contemplated thereby;

 

(c)                                  the
restructuring of the Group on the Closing Date contemplated by the Letter
Agreement, dated 21 December 2005 (the “Letter
Agreement”), as permitted by the U.S. ABL Credit Agreement and the
U.S. LBO Credit Agreement;

 

(d)                                 the
transactions expressly referred to in the Funds Flow Memorandum;

 

(e)                                  the direct or
indirect payment of Acquisition Costs;

 

(f)                                    the Hertz
Intercompany Loan; and

 

(g)                                 the Canadian
Reorganisation.

 

“Transfer Certificate”
means a duly completed certificate substantially in the form set out in
Schedule 3 (Form of Transfer Certificate)
or any other form agreed between the Facility Agent and the Parent and signed
by a Bank or, as the case may be, a Transferee under which:

 

(a)                                  such
Bank seeks to procure the transfer to such Transferee of all or a part of the
rights, benefits and/or obligations of such Bank under the Finance Documents
upon and subject to the terms and conditions set out in Clause 36.3 (Assignments and Transfers by Banks); and

 

(b)                                 such
Transferee undertakes to perform the obligations it will assume as a result of
delivery of such certificate to the Facility Agent as contemplated in
Clause 36.6 (Transfers by Banks).

 

“Transfer Date”
means, in relation to any Transfer Certificate, the date for the making of the
transfer as specified in such Transfer Certificate.

 

“Transferee”
means a bank, financial institution, fund or other entity to which a Bank seeks
to transfer by novation all or part of such Bank’s rights, benefits and/or
obligations under the Finance Documents.

 

“Treaty Lender”
means a Finance Party which (a) is treated as resident (for the purposes
of the relevant double taxation agreement) in a jurisdiction having a double
taxation agreement with the Relevant Jurisdiction of the relevant Borrower
(subject to the completion of any necessary procedural formalities) giving
complete exemption from all Relevant Tax otherwise imposed by such jurisdiction
on all payments

 

100

 

hereunder or under the Finance Documents and (b) is
not excluded from the benefit of such exemption.

 

“Twelve Month Period”
means each financial year of the Parent.

 

“UK Capital Lease
Indebtedness” means, at any time, the aggregate amount of the
liability of each Borrower or each Borrower’s Related Opco (as applicable)
organised in the United Kingdom under any Lombard Leasing Agreement at such
time.

 

“Unpaid Sum”
means the unpaid balance of any of the sums referred to in Clause 28.1 (Default Interest Periods).

 

“USA” means the
United States of America or any of its states or territories and the District
of Columbia.

 

“U.S. ABL Credit Agreement”
means the Credit Agreement, dated as of December 21, 2005, as amended as
of June 30, 2006, among Hertz Equipment Rental Corporation, a Delaware
corporation, The Hertz Corporation, a Delaware corporation, the Canadian
Borrowers (as therein defined), the several banks and other financial
institutions from time to time parties thereto, Deutsche Bank AG, New York
Branch, as administrative agent and collateral agent, Deutsche Bank AG, Canada
Branch, as Canadian agent and Canadian collateral agent, Lehman Commercial
Paper Inc., as syndication agent, and Merrill Lynch Capital Corporation, as documentation
agent.

 

“U.S. LBO Credit Agreement”
means the Credit Agreement, dated as of December 21, 2005, as amended as
of June 30, 2006, among, The Hertz Corporation, a Delaware corporation,
the several banks and other financial institutions from time to time parties to
this Agreement, Deutsche Bank AG, New York Branch, as administrative agent and
collateral agent, Lehman Commercial Paper Inc., as syndication agent, and
Merrill Lynch Capital Corporation, as documentation agent.

 

“US Obligors”
means those Obligors organised under the law of any state of the USA.

 

“Utilisation
Date” means:

 

(a)                                  in
relation to any Facility (other than a Swingline Facility), the date on which
an Advance is to be made under such Facility, which shall be a Settlement Date
in relation to such Facility;

 

(b)                                 in
relation to a Swingline Facility, the date on which a Swingline Advance is to
be made under such Facility, which shall be the Specified Business Day falling
one Specified Business Day (in the case of a Swingline Advance denominated in
Sterling, Canadian Dollars or Euro) or two Specified Business Days (in the case
of a Swingline Advance or Letter of Credit denominated in Australian Dollars
and Swiss Francs) after the Notification Date; and

 

(c)                                  in
relation to a Letter of Credit, the date on which it is to be issued, which
shall be the Specified Business Day falling four Specified Business Days after
the Notification Date.

 

101

 

“Utilisation Notice”
means (a) in the case of all Advances (other than Swingline Advances) and
Letters of Credit, a duly completed notice in the form set out in Part 1
of Schedule 5 (Utilisation Notices)
and (b) in the case of all Swingline Advances, a duly completed notice in
the form set out in Part 2 of Schedule 5 (Utilisation
Notices).

 

“VAT Amount”
means, in relation to any SPV, any amount payable by that SPV in respect of or
which represents VAT in respect of which that SPV is entitled to credit or
repayment in full from the relevant tax authority.

 

“VAT
Obligations Ledger” means the ledger maintained by each SPV (or the
relevant Servicer on its behalf) which records the amount of VAT payable (but
not yet paid) by that SPV to the relevant tax authority from time to time.

 

“VAT
Receivables” means, in relation to any SPV at any time:

 

(a)                                  the
total amount as at such time of VAT input tax incurred by that SPV in respect
of which it is entitled to a credit or repayment from the relevant tax
authority; less

 

(b)                                 the
aggregate of (without double counting) (i) the total amount of such VAT
input tax in respect of which it has by such time received repayment from the
relevant tax authority and (ii) the Net VAT Cash Balance at such time.

 

“VCLP”
means a venture capital limited partnership within the meaning of subsection
118-405(2) of the Australian Income Tax Assessment Act 1997.

 

“Vehicle Dealer”
means, in relation to any vehicle, the dealership (being an entity which is in
the business of buying and selling cars) which sells such vehicle to the
relevant A1 Borrower or A2 Borrower (or if such A1 Borrower or A2 Borrower is a
Financeco, its Related Opco).

 

“Vehicle Dealer Buy-Back Agreement” means, in
relation to any A1 Borrower or A2 Borrower:

 

(a)                                  any
purchase and buy-back agreement between such Borrower (or if such Borrower is a
Financeco, its Related Opco) and a Vehicle Dealer entered into prior to the
Closing Date with respect to any vehicle, provided that if necessary or
desirable in the reasonable judgement of the Facility Agent such Borrower shall
use (or if such Borrower is a Financeco, shall procure that its Related Opco
uses) its commercially reasonable efforts after the Closing Date (or, if such
Borrower is an Opco that does not have an Operational SPV with respect to such
Vehicle Dealer prior to the date falling six months after the Closing Date,
such Borrower shall use its reasonable best efforts after the date falling six
months after the Closing Date) to renegotiate such agreement in a manner such
that, after giving effect to any modifications or amendments as a result
thereof:

 

(i)                                     the
terms and conditions of such agreement will be satisfactory to the Facility
Agent (acting reasonably) to fully value such Vehicle Dealer’s commitments
thereunder;

 

102

 

(ii)           such agreement will contain
retention of title provisions in favour of the Borrower or its Related Opco (as
the case may be) which will enable the Rating Agencies to give value to such
Vehicle Dealer’s payment obligations thereunder; and

 

(iii)          such agreement will be in
form and substance satisfactory to the Facility Agent, acting reasonably and
consistent with then customary securitisation market standards; and

 

(b)                                 any
purchase and buy-back agreement between such Borrower or its Related Opco (as
the case may be) and a Vehicle Dealer entered into on or after the Closing Date
with respect to any vehicle provided that:

 

(i)            the terms and conditions of
such agreement are satisfactory to the Facility Agent (acting reasonably) to
fully value such Vehicle Dealer’s commitments thereunder;

 

(ii)           such agreement contains
retention of title provisions in favour of the Borrower or its Related Opco (as
the case may be) which will enable the Rating Agencies to give value to such
Vehicle Manufacturer’s payment obligations thereunder; and

 

(iii)          such agreement is in form
and substance satisfactory to the Facility Agent, acting reasonably and
consistent with then customary securitisation market standards,

 

and which in each case, has a credit period of less
than 30 days and the credit risk with respect to which is covered by a Vehicle
Dealer Buy-Back Guarantee or an insurance policy in each case, in form and
substance satisfactory to the Facility Agent (acting reasonably) and if, the
related Vehicle Dealer Buy-Back Agreement is assigned to the Security Agent
pursuant to the Finance Documents, such Vehicle Dealer Buy-Back Guarantee and
such insurance policy have also been so assigned.

 

“Vehicle Dealer Buy-Back
Guarantee” means, in relation to any Vehicle Dealer and any Vehicle Dealer
Buy-Back Agreement:

 

(a)           a Vehicle Manufacturer
Guarantee; or

 

(b)           any guarantee granted by any
Vehicle Dealer’s bank in favour of a Borrower (or if such Borrower is a
Financeco, its Related Opco) with respect to the obligations of any Vehicle
Dealer under any Vehicle Dealer Buy-Back Agreement, which guarantee shall be in
form and substance satisfactory to the Facility Agent (acting reasonably).

 

“Vehicle Dealer Receivables”
means, at any time and in relation to any Borrower (or, if such Borrower is a
Financeco, its Related Opco), the aggregate of the unpaid portion of all
amounts owed by any Vehicle Dealer to such Borrower or its Related Opco (as the
case may be) at such time pursuant to the disposition by such Borrower or its
Related Opco (as the case may be) of any vehicle under any Vehicle Dealer
Buy-Back Agreement.

 

103

 

“Vehicle Manufacturer”
means, in relation to any vehicle, the manufacturer of such vehicle.

 

“Vehicle Manufacturer Buy-Back Agreement” means, in
relation to any A1 Borrower or A2 Borrower:

 

(a)                                  any
purchase and buy-back agreement between such Borrower (or if such Borrower is a
Financeco, its Related Opco) and a Vehicle Manufacturer entered into prior to
the Closing Date with respect to any vehicle, provided that if necessary or
desirable in the reasonable judgement of the Facility Agent such Borrower shall
use (or if such Borrower is a Financeco, shall procure that its Related Opco
uses) its commercially reasonable efforts after the Closing Date (or, if such
Borrower is an Opco that does not have an Operational SPV with respect to such
Vehicle Manufacturer prior to the date falling six months after the Closing
Date, such Borrower shall use its reasonable best efforts after the date
falling six months after the Closing Date) to renegotiate such agreement in a
manner such that, after giving effect to any modifications or amendments as a
result thereof:

 

(i)            the terms and conditions of
such agreement will be satisfactory to the Facility Agent (acting reasonably)
to fully value such Vehicle Manufacturer’s commitments thereunder;

 

(ii)           such agreement will contain retention
of title provisions in favour of the Borrower or its Related Opco (as the case
may be) which will enable the Rating Agencies to give value to such Vehicle
Manufacturer’s payment obligations thereunder or such buy-back obligations will
be transferred to or guaranteed by a subsidiary of the Vehicle Manufacturer
acceptable to the Rating Agencies; and

 

(iii)          such agreement will be in
form and substance satisfactory to the Facility Agent, acting reasonably and
consistent with then customary securitisation market standards; and

 

(b)                                 any
purchase and buy-back agreement between such Borrower or its Related Opco (as
the case may be) and a Vehicle Manufacturer entered into on or after the
Closing Date with respect to any vehicle provided that:

 

(i)            the terms and conditions of
such agreement are satisfactory to the Facility Agent (acting reasonably) to
fully value such Vehicle Manufacturer’s commitments thereunder;

 

(ii)           such agreement contains
retention of title provisions in favour of the Borrower or its Related Opco (as
the case may be) which will enable the Rating Agencies to give value to such
Vehicle Manufacturer’s payment obligations thereunder or such buy-back
obligations will be transferred to or guaranteed by a subsidiary of the Vehicle
Manufacturer acceptable to the Rating Agencies; and

 

104

 

(iii)          such agreement is in form
and substance satisfactory to the Facility Agent, acting reasonably and
consistent with then customary securitisation market standards.

 

“Vehicle
Manufacturer Event of Default” means, with respect to any Vehicle
Manufacturer, either of the following circumstances:

 

(a)           such Vehicle Manufacturer
has failed to pay when due pursuant to the terms of the relevant Vehicle
Manufacturer Buy-Back Agreement or the relevant Vehicle Manufacturer Guarantee
and such failure continues unremedied for a period of 90 days or more, any
amounts greater than the lesser of:

 

(i)            the Euro Equivalent of
US$15,000,000 at such time; and

 

(ii)           the aggregate of all amounts
owed by such Vehicle Manufacturer or in the case of a Vehicle Manufacturer
Guarantee, the relevant Vehicle Dealer, to the relevant Borrower (or if such
Borrower is a Financeco, its Related Opco) at such time pursuant to each
Vehicle Manufacturer Buy-Back Agreement and each Vehicle Manufacturer Guarantee
between such Vehicle Manufacturer and such Borrower or its Related Opco (as the
case may be), without double-counting, less such amounts that are:

 

(A)                              being
contested in good faith by such Vehicle Manufacturer and/or Vehicle Dealer, as
the case may be, as evidenced in writing questioning the accuracy of amounts
paid or payable with respect to certain vehicles subject to Vehicle
Manufacturer Buy-Back Agreements and/or Vehicle Manufacturer Guarantees entered
into by such Vehicle Manufacturer (but excluding amounts arising pursuant to a
general repudiation by such Vehicle Manufacturer of all of its obligations
under all of its Vehicle Manufacturer Buy-Back Agreements and/or Vehicle
Manufacturer Guarantees with such A1 Borrower or its Related Opco (as the case
may be)); and

 

(B)           for which such Borrower or
its Related Opco (as the case may be) has established an adequate reserve (as
determined by such Borrower, acting reasonably),

 

provided that the aggregate of such subtracted
amounts shall not exceed the Euro Equivalent of US$25,000,000; or

 

(b)                                 any
of the events described in Clause 23.5 (Insolvency
and Rescheduling), Clause 23.6 (Winding-up),
or Clause 23.7 (Execution or Distress)
occur in respect of such Vehicle Manufacturer (it being understood that the
references in the aforementioned paragraphs to “Obligor”
shall be deemed to refer to such Vehicle Manufacturer for the purposes of this
Clause (b)).

 

“Vehicle Manufacturer
Guarantee” means, in relation to any Vehicle Dealer and any Vehicle
Dealer Buy-Back Agreement, any guarantee granted by a Vehicle Manufacturer in
favour of any Borrower (or if such Borrower is a Financeco, its

 

105

 

Related Opco) with respect to the obligations of
such Vehicle Dealer under such Vehicle Dealer Buy-Back Agreement, which
guarantee, if entered into after the Closing Date, shall be in form and
substance satisfactory to the Facility Agent (acting reasonably).

 

“Vehicle Manufacturer
Receivables” means, at any time and in relation to any Borrower (or,
if such Borrower is a Financeco, its Related Opco), the aggregate of all
amounts owed by any Vehicle Manufacturer to such Borrower or its Related Opco
(as the case may be) at such time pursuant to the disposition by such Borrower
or its Related Opco (as the case may be) of any vehicle under any Vehicle
Manufacturer Buy-Back Agreement.

 

“Vehicle Rental Concession”
means  any right, whether or not
exclusive, to conduct a vehicle rental business at a Public Facility, or to
pick up or discharge persons or otherwise to possess or use all or part of a
Public Facility in connection with such a business, and any related rights or
interests.

 

“Vehicle Rental Concession
Rights” means:

 

(a)                                  any
Vehicle Rental Concession; and

 

(b)                                 any
rights of any member of the Group under or relating to:

 

(i)            any law, regulation,
licence, permit, request for proposals, invitation to bid, lease, agreement or
understanding with a Public Facility Operator in connection with which a
Vehicle Rental Concession has been or may be granted to any member of the
Group; and

 

(ii)           any agreement with, or
Investment or other interest or participation in, any person, property or asset
required (x) by any such law, ordinance, regulation, licence, permit,
request for proposals, invitation to bid, lease, agreement or understanding or (y) by
any Public Facility Operator, in each case as a condition to obtaining or
maintaining a Vehicle Rental Concession.

 

“Vehicle Supply Agreement”
means, in relation to any A1 Borrower or A2 Borrower, an agreement (other than
a Buy-Back Agreement) between such Borrower and a Vehicle Dealer or Vehicle
Manufacturer, as the case may be, which provides for the purchase (whether or
not following accession by the applicable SPV to the Vehicle Supply Agreement)
of vehicles in such Core Country by an SPV.

 

“Voting Stock”
of an entity means all classes of shares or other equity interests of such
entity then outstanding and normally entitled to vote in the election of
directors or all interests in such entity with the ability to control the
management or actions of such entity.

 

1.2                                 Interpretation

 

Any reference in this Agreement to:

 

the “Facility Agent”,
any “Mandated Lead Arranger”, any “Arranger”, the “Security Agent”,
the “Global Coordinator”, any “Bank” or any “L/C Issuer”
shall

 

106

 

be construed so as to include its and any subsequent
successors and permitted transferees in accordance with their respective
interests;

 

an “affiliate” of a
person is a subsidiary of that person or a holding company of that person or
any other subsidiary of that holding company;

 

a document being in an “agreed form”
means that document approved by or on behalf of the Parent and the Facility
Agent or, where expressly stated, by the Parent and the Facility Agent, or the
Security Agent, as the case may be;

 

save as otherwise indicated herein, the “equivalent” on any given date in one currency (the “first currency”) of an amount denominated in another
currency (the “second currency”) is a reference
to the amount of the first currency which would be purchased with the amount of
the second currency at the Spot Rate of Exchange on such date (or such other
time as may be appropriate) for the purchase of the first currency with the
second currency;

 

a “holding company”
of a company or corporation shall be construed as a reference to any company or
corporation of which the first-mentioned company or corporation is a
subsidiary;

 

a “law” shall be
construed as any law (including common or customary law), statute,
constitution, decree, judgment, treaty, regulation, directive, bye-law, order
or any other legislative measure of any government, supranational, local
government, statutory or regulatory body or court;

 

a “month” is a
reference to a period starting on one day in a calendar month and ending on the
numerically corresponding day in the next succeeding calendar month save that,
where any such period would otherwise end on a day which is not a Business Day,
it shall end on the next succeeding Business Day, unless that day falls in the
calendar month succeeding that in which it would otherwise have ended, in which
case it shall end on the immediately preceding Business Day, provided that, if a
period starts on the last Business Day in a calendar month or if there is no
numerically corresponding day in the month in which that period ends, that
period shall end on the last Business Day in that later month;

 

a “person” shall
be construed as a reference to any person, firm, company, corporation,
government, state or agency of a state or any association or partnership
(whether or not having separate legal personality) of two or more of the
foregoing provided that only a firm, company, corporation or partnership may be
a subsidiary of the Parent;

 

the “relevant interbank market”
is a reference to:

 

(a)           in
relation to the Euro, the European interbank market; or

 

(b)           in
relation to Canadian Dollars, the Canadian interbank market;

 

(c)           in
relation to Australian Dollars, the Australian interbank market; and

 

(d)           in
relation to any other currency, the London interbank market;

 

107

 

the “relevant interbank rate”
is a reference to:

 

(a)                                  in relation to
the Euro, EURIBOR;

 

(b)                                 in relation to
Australian Dollars, BBSY;

 

(c)                                  in
relation to Canadian Dollars, the BA Rate; or

 

(d)                                 in relation to
any other currency, LIBOR;

 

“repay” (or any
derivative form thereof) shall, subject to any contrary indication, be
construed to include “prepay” (or, as
the case may be, the corresponding derivative form thereof) and in relation to
a Letter of Credit, shall mean the reduction or cancellation of the obligations
of the L/C Issuer or the provision of Cash Collateral in relation thereto;

 

a “subsidiary” of
a company or corporation shall be construed as a reference to any company or
corporation (other than any Excluded Canadian Company):

 

(a)                                  which
is controlled, directly or indirectly, by (and would be treated as a subsidiary
in the latest financial statements of) the first-mentioned company or
corporation; or

 

(b)                                 of
which more than half the issued share capital of which is beneficially owned,
directly or indirectly, by the first-mentioned company or corporation; or

 

(c)                                  which
is a subsidiary of another subsidiary of the first-mentioned company or
corporation

 

and, for these purposes, a company or corporation
shall be treated as being controlled by another if that other company or
corporation is able to direct its affairs and/or to control the composition of
its board of directors or equivalent body provided that no Take-Out Borrower to
which Clause 38.5(c) (Termination of a
Borrower’s rights) applies shall be construed as a subsidiary of the
Parent from the date on which the Parent has complied with its obligations
under paragraph (c) of Clause 13.3 (Mandatory
Reduction of Facilities) in respect of the Net Cash Proceeds of such
Take-Out Financing;

 

a “successor”
shall be construed so as to include an assignee or successor in title of such
party and any person who under the laws of its jurisdiction of incorporation or
domicile has assumed the rights and obligations of such party under this
Agreement or to which, under such laws, such rights and obligations have been
transferred;

 

“taxes” shall be
construed to include all present and future taxes, levies, imposts, deductions,
charges, duties and withholdings and any charges of a similar nature, and “tax”, “taxation” and
cognate expressions shall be construed accordingly;

 

“VAT” shall be
construed as a reference to value added tax imposed in compliance with the
Sixth Directive or the Recast Directive as it applies in any Core Country and
any tax similar in fiscal nature to such value added tax (including goods and
services tax) imposed or applicable in any Core Country (where “Recast Directive” is a

 

108

 

reference to the council directive of 28 November 2006
on the common system of value added tax (EC Directive 2006/112) and the “Sixth Directive” is a reference to the sixth council
directive of 17 May 1977 on the harmonisation of the laws of the member
states relating to turnover taxes - common system of value added tax: uniform
basis of assessment (EC Directive 77/388));

 

a “wholly-owned subsidiary”
of a company or corporation shall be construed as a reference to any company or
corporation which has no shareholder or other members except that other company
or corporation and that other company’s or corporation’s wholly-owned
subsidiaries or persons acting on behalf of that other company or corporation
or its wholly-owned subsidiaries ignoring for these purposes “golden shares”, directors’ qualifying shares and shares held
by any person to meet other statutory requirements, including in respect of a société en commandite par actions); and

 

the “winding-up”, “dissolution” or “administration”
of a company or corporation shall be construed so as to include any equivalent
or analogous proceedings under the law of the jurisdiction in which such
company or corporation is incorporated or any jurisdiction in which such
company or corporation carries on business including the seeking of
liquidation, winding-up, reorganisation, bankruptcy, moratorium of payments,
division, statutory merger, dissolution, administration, arrangement,
adjustment, protection or relief of debtors.

 

1.3                                 Australian Borrowers

 

(a)                                  If the circumstances described in
Clause 45.1(b) (Loan Note Deed Poll)
apply then, with respect to Australian Borrowers only, any reference in this
Agreement to:

 

(i)            an “Advance”
is a reference to a “Loan Note”;

 

(ii)           the “making
of an Advance” and any equivalent concept is a reference to the “issuance of a Loan Note” or the “subscription for a Loan Note” as the
context requires;

 

(iii)          the “repayment
of an Advance” and any equivalent concept is a reference to the “redemption of a Loan Note”; and

 

(iv)          the “prepayment
of an Advance” and any equivalent concept is a reference to the “early redemption of a Loan Note”.

 

(b)                                 Hertz Australia Pty Limited and each
other Obligor which is party to this Agreement acknowledges and agrees in
favour of each Finance Party that in respect of Hertz Note Issuer Pty Limited
(the “Relevant Australian Obligor”):

 

(i)            Hertz Australia Pty Limited makes or gives each
representation or warranty which is expressly stated to be made or given by
each Obligor or the Obligors under Clause 19 (Representations)
of this Agreement in respect of the Relevant Australian Obligor; and

 

109

 

(ii)           Hertz Australia Pty Limited  must ensure
that the Relevant Australian Obligor complies with each covenant or agreement
which is  expressly stated to be made, undertaken or given by each Obligor
or the Obligors under Clauses 20.5 (Other Financial Information) and 20.7 (“Know your
customer” checks), 21 (Positive Covenants),
21.28(a) (Negative Covenants),  36 (Assignment and Transfer), 43 (Counterparts)
and 44 (Amendments) of this Agreement and
Clauses 3.2 (Equity Financing Indebtedness),
4 (Permitted Payments) and 16 (Information and Co-operation) of the Intercreditor Deed.

 

1.4                                 Facility Agent

 

With respect to any Advances made to any Borrower
incorporated in Australia, Italy or the United Kingdom only, the Facility Agent
shall act through its Facility Office in the jurisdiction of incorporation of
such Borrower, and with respect to any Canadian Borrower only, the Facility
Agent shall act through its wholly-owned Canadian subsidiary or Canadian branch
as applicable.

 

1.5                                 Currency Symbols

 

“£” and “Sterling” denote the lawful currency of the United Kingdom,
“AUD” and “Australian
Dollars” denote the lawful currency of Australia, “€” and “Euro” means the
single currency unit of Participating Member States, “CAD”
and “Canadian Dollars” denote the lawful
currency of Canada, “CHF” and “Swiss Francs” denotes the lawful currency of Switzerland, “US$” denotes the lawful currency for the time being of the
USA and “R$” denotes the lawful currency for the
time being of Brazil.

 

1.6                                 Agreements and Statutes

 

Any reference in this Agreement to:

 

(a)                                  this Agreement or any other
agreement or document shall be construed as a reference to this Agreement or,
as the case may be, such other agreement or document as the same may have been,
or may from time to time be, amended, waived, varied, refinanced, novated or
supplemented; and

 

(b)                                 a statute or treaty shall be
construed as a reference to such statute or treaty as the same may have been,
or may from time to time be, amended or, in the case of a statute, re-enacted.

 

1.7                                 Headings

 

Clause and Schedule headings are for ease
of reference only.

 

1.8                                 Time

 

Any reference in this Agreement to a time of day
shall, unless a contrary indication appears, be a reference to London
time.  Any act required to be taken on a
day which is not a Business Day shall be taken on the next succeeding Business
Day unless otherwise specifically provided in this Agreement.

 

110

 

1.9                                 Singular and Plural

 

Any reference in this Agreement to words importing
the plural shall include the singular and vice versa.

 

1.10                           Third Party Rights

 

A person who is not a party to this Agreement has no
right under the Contracts (Rights of Third Parties) Act 1999 to enforce any
term of this Agreement provided that Secured Hedge Counterparties not otherwise
party to this Agreement may take the benefit of, and rely on the provisions of,
Clause 24 (Guarantee and Indemnity).  Notwithstanding any term of any Finance
Document, the consent of any such Secured Hedge Counterparty is not required to
rescind, amend, waive or vary this Agreement at any time.

 

1.11                           Calculations

 

Save as otherwise indicated herein, if any amount
under this Agreement is required to be determined in relation to any Borrower
at any time, such amount shall be determined:

 

(a)                                  in the case of any Borrower (or, if
such Borrower is a Financeco, its Related Opco) organised in the United
Kingdom, in Sterling;

 

(b)                                 in the case of any Borrower (or, if
such Borrower is a Financeco, its Related Opco) organised in Australia, in
Australian Dollars;

 

(c)                                  in the case of any Borrower (or, if
such Borrower is a Financeco, its Related Opco) organised in Canada or whose
Related Opco is organised in Canada, in Canadian Dollars;

 

(d)                                 in the case of any Borrower (or, if
such Borrower is a Financeco, its Related Opco) organised in Switzerland, in
Swiss Francs;

 

(e)                                  in the case of any Borrower (or, if
such Borrower is a Financeco, its Related Opco) organised in any other Core
Country, in Euro,

 

provided that if any portion of such amount includes
an amount denominated or expressed in any currency other than the relevant
Designated Currency indicated above, such portion shall be equal to its
Designated Currency Equivalent at such time.

 

1.12                           New York Law

 

The terms “best efforts”, “reasonable best efforts”
and “commercially reasonable efforts” as used herein and in the other Finance
Documents shall be governed by and construed in accordance with the laws of the
State of New York.

 

1.13                           Limited Recourse – Australian Orphan
SPV

 

(a)                                  Subject
to Clause 1.13(d), but despite any other provision of this Agreement, the
Australian Orphan SPV is only obliged to pay any amount otherwise

 

111

 

payable under or in relation to this
Agreement to the extent that the amount can be satisfied out of the Australian
Orphan SPV Secured Property.

 

(b)                                 Subject
to Clause 1.13(d) but despite any other provision of this Agreement,
the Security Agent must not:

 

(i)            take
any action against the Australian Orphan SPV personally to recover any part of
the Secured Moneys which cannot be recovered out of the Australian Orphan SPV
Secured Property; or

 

(ii)           levy
execution or bring any other proceedings (other than to enforce a Transaction
Document) against any property of the Australian Orphan SPV which does not form
part of the Australian Orphan SPV Secured Property to recover any part of the
Secured Moneys.

 

(c)           This
Clause 1.13(b) operates as a covenant not to sue and not as a
release, and may be pleaded in bar to any action brought in breach of it.

 

(d)           Nothing
in this Clause 1.13 affects the rights of the Security Agent or the
liability of the Australian Orphan SPV with respect to fraud, gross negligence
or wilful misconduct by the Australian Orphan SPV.

 

1.14                           Inconsistencies
with other Finance Documents

 

If there is an inconsistency between this Agreement
and any other Finance Document other than the Intercreditor Deed, this
Agreement will prevail; if there is an inconsistency between this Agreement and
the Intercreditor Deed the Intercreditor Deed shall prevail.

 

2.                                      THE FACILITIES

 

2.1                                 Grant of the Facilities

 

(a)                                  The Banks grant upon the terms and
subject to the conditions hereof:

 

(i)                                     to the A1 Borrowers, a multicurrency
revolving credit facility as follows:

 

(A)                              a
tranche in a maximum aggregate amount of £145,800,000 (the “A1 Sterling Tranche”) to be available in Sterling and,
subject to paragraph (b) below, Euro;

 

(B)                                a
tranche in a maximum aggregate amount of AUD212,700,000 (the “A1 Australian Dollar Tranche”) to be available in Australian
Dollars;

 

(C)                                a
tranche in a maximum aggregate amount of CAD312,300,000 (the “A1 Canadian Dollar Tranche”) to be available in Canadian
Dollars;

 

112

 

(D)          a tranche in a maximum
aggregate amount of CHF58,900,000 (the “A1 Swiss Franc Tranche”)
to be available in Swiss Francs and, subject to paragraph (b) below,
Euro;

 

(E)           a tranche in a maximum
aggregate amount of (x) €1,390,199,500
less (y) the sum of €106,000,000 (being the maximum aggregate amount of
the A1 Italian Non-Guaranteed Tranche) and the aggregate amount of the Dutch
Capital Lease Indebtedness (determined immediately after the Closing Date) (the
“A1 Euro Tranche”) to be available in
Euro; and

 

(F)           a tranche in a maximum
aggregate amount of €106,000,000 (the “A1 Italian
Non-Guaranteed Tranche”) to be available, subject to paragraph (c) below,
in Euro, provided that the Finance Parties may in the period following
the delivery by Italian Opco of its statutory financial statements pursuant to
Clause 20.1(c) (Annual Statements)
agree with the Parent and Italian Opco in writing to a further amendment of the
amount of the A1 Italian Non-Guaranteed Tranche, together with any consequent
amendments to this Agreement (for the avoidance of doubt, any such amendment
shall not result in an increase of the aggregate amount of the A1 Tranche
Commitments);

 

(ii)                                  to the A2 Borrowers, a second
ranking multicurrency revolving credit facility as follows:

 

(A)          a tranche in a maximum
aggregate amount of £20,800,000 (the “A2 Sterling Tranche”)
to be available in Sterling and, subject to paragraph (b) below,
Euro;

 

(B)           a tranche in a maximum
aggregate amount of AUD30,400,000 (the “A2 Australian Dollar
Tranche”) to be available in Australian Dollars;

 

(C)           a tranche in a maximum aggregate
amount of CAD44,600,000 (the “A2 Canadian Dollar Tranche”)
to be available in Canadian Dollars;

 

(D)          a tranche in a maximum
aggregate amount of CHF8,400,000 (the “A2 Swiss Franc Tranche”)
to be available in Swiss Francs and, subject to paragraph (b) below,
Euro;

 

(E)           a tranche in a maximum
aggregate amount of €198,599,500 less €9,754,038.68 (being the maximum
aggregate amount of the A2 Italian Non-Guaranteed Tranche) (the “A2 Euro Tranche”) to be available in Euro; and

 

(F)           a tranche in a maximum
aggregate amount of €9,754,038.68 (the “A2 Italian
Non-Guaranteed Tranche”) to be available, subject to paragraph (d) below,
in Euro, provided that the Finance Parties may in the period following
the delivery by 

 

113

 

Italian Opco of its statutory financial statements
pursuant to Clause 20.1(c) (Annual Statements)
agree with the Parent and Italian Opco in writing to a further amendment of the
amount of the A1 Italian Non-Guaranteed Tranche, together with any consequent
amendments to this Agreement (for the avoidance of doubt, any such amendment
shall not result in an increase of amount of the A2 Tranche Commitments); and

 

(iii)          to the C Borrowers, a multicurrency revolving credit
facility in an aggregate amount equal to the Total C Commitments to be
available in Euro and, subject to paragraph (e) below, Sterling,
Australian Dollars, Canadian Dollars, Swiss Francs and Euro.

 

(b)                                 On each
Utilisation Date, to the extent any portion of a Sterling Tranche or a Swiss
Franc Tranche remains or will remain undrawn (after giving effect to any
proposed Advances in Sterling or Swiss Francs (as the case may be) under such
Tranche on such Utilisation Date), such Tranche may be drawn in a maximum
aggregate amount equal to the Euro Equivalent (determined as of the Calculation
Date relating to such Utilisation Date) of the undrawn portion thereof (each a “Permitted Euro Tranche”) as at such
Utilisation Date. For the avoidance of doubt, any amount drawn in Euro under a
Sterling Tranche or a Swiss Franc Tranche shall remain outstanding in Euro and
shall be repayable in Euro.

 

(c)                                  On each
Utilisation Date, the A1 Italian Non-Guaranteed Tranche may be drawn only if,
in the case of:

 

(i)                                     Italian Opco, €152,000,000;
or

 

(ii)                                  any other
Italian Borrower, the amount in Euro indicated in the relevant
Accession Memorandum,

 

has been fully drawn by it
under one or more other Tranches (after giving effect to
any proposed Advances under such Tranches on such Utilisation Date).

 

(d)                                 On each
Utilisation Date, the A2 Italian Non-Guaranteed Tranche may be drawn only if,
in the case of:

 

(i)                                     Italian Opco,
€152,000,000; or

 

(ii)                                  any other
Italian Borrower, the amount in Euro indicated in the relevant Accession
Memorandum,

 

has been fully drawn by it under one or more other
Tranches (after giving effect to any proposed Advances under such Tranches on
such Utilisation Date).

 

(e)                                  The C Facility may be utilised by way of Letters of Credit, to be  available in Sterling, Australian Dollars,
Canadian Dollars, Swiss Francs and Euro,

 

114

 

provided the maximum aggregate amount of the actual and contingent
liabilities of all L/C Issuers under:

 

(i)            all Letters of Credit denominated in Euro shall not
exceed €15,000,000; and

 

(ii)           all Letters of Credit denominated in any Designated
Currency other than Euro shall not exceed an aggregate Euro Amount of
€5,000,000.

 

2.2                                 Purpose and Application of each A Facility

 

(a)                                  The proceeds of each A1 Advance and A2 Advance made on the Closing Date
will be applied in or towards:

 

(i)                                     first, refinancing:

 

(A)          a portion of the purchase
price of (1) the relevant Borrower’s Existing Vehicle Fleet or (2) if
the relevant Borrower is a Financeco, the Existing Vehicle Fleet of its Related
Opco; and/or

 

(B)           Existing Indebtedness of any
Opco or any affiliate of the relevant Borrower which is a subsidiary of the
Parent, as set forth on Part 1 of Schedule 14 (Existing
Indebtedness); and

 

(ii)           secondly, making payments (including paying dividends,
making distributions or entering into intercompany loans in order to fund
payments) in connection with the Acquisition (including the repayment of
Existing Indebtedness of the Target Group), as set forth on Part 1 of Schedule 14 (Existing
Indebtedness).

 

(b)                                 The proceeds of each A1 Advance and A2 Advance made after the Closing
Date will be applied in or towards:

 

(i)            financing a portion of the purchase price of (1) the
relevant Borrower’s New Vehicles or (2) if the relevant Borrower is a Financeco, the New Vehicles of its Related Opco; and

 

(ii)           the general corporate purposes of the Group, including
without limitation the acquisition of Eligible Cash or Eligible Cash
Equivalents.

 

2.3                                 Purpose and Application of C Facility

 

(a)                                  The proceeds of each C Advance made and each Letter of Credit issued on
the Closing Date will be applied in or towards:

 

(i)                                     first, refinancing:

 

(A)                              a
portion of the purchase price of (1) the relevant C Borrower’s Existing
Equipment Assets or (2) if the relevant C Borrower is 

 

115

 

a Financeco, the Existing Equipment Assets of its
Related Opco); and/or

 

(B)           Existing Indebtedness of any
Opco or of any affiliate of the relevant C Borrower which is a subsidiary of
the Parent, as set forth on Part 2 of Schedule 14 (Existing Indebtedness); and

 

(ii)           secondly, making payments (including paying dividends,
making distributions or entering into intercompany loans in order to fund
payments) in connection with the Acquisition (including the repayment of
Existing Indebtedness of the Target Group, as set forth on Part 2 of Schedule 14 (Existing
Indebtedness)) or for payment into a Security Agent Account.

 

(b)           The proceeds of each C Advance made and each Letter of
Credit issued after the Closing Date will be applied in or towards:

 

(i)            financing a portion of the purchase price of (1) the
relevant C Borrower’s New Equipment Assets or (2) if the relevant C Borrower is a Financeco, the New Equipment Assets of its Related Opco; and

 

(ii)           the general corporate purposes of the Group,
including, without limitation, the acquisition of Eligible Cash or Eligible
Cash Equivalents and intercompany loans and other transactions with other
members of the Group permitted by the terms of this Agreement or for payment
into a Security Agent Account.

 

2.4                                 Professional Market Party Representation

 

(a)                                  Each Bank which makes an Advance to a Dutch Borrower explicitly declares
and represents to each Dutch Borrower, on the date of this Agreement and, if on
such date it is a requirement of Dutch law that each Bank is a PMP, the date on
which an Advance (or any portion thereof) is made to such Dutch Borrower, that (i) it
is a PMP, (ii) it is aware that it therefore does not benefit from the
(creditor) protection offered by the Dutch Banking Act (including but not
limited to Section 3:5 of the Dutch Act on Financial Supervision) when
lending monies to persons or entities which are subject to the prohibition of Section 82
of the Dutch Banking Act and (iii) it has made its own credit appraisal of
the Dutch Borrower.

 

(b)                                 If on the date on which a New Bank becomes a Bank which makes an Advance
to a Dutch Borrower, it is a requirement of Dutch law that such New Bank is a
PMP, such New Bank makes the representation set out in paragraph 10 of the
Transfer Certificate.

 

(c)                                  Each Bank acknowledges that the Dutch Borrower has relied upon such
representation and undertakes, to the extent necessary, to provide its
reasonable assistance to the Dutch Borrower in verifying such Bank’s PMP
status.

 

116

 

3.                                      CONDITIONS PRECEDENT

 

3.1                                 Initial Conditions Precedent

 

(a)                                  Save as the Banks may otherwise agree, the Banks shall not be obliged to
make any utilisation of any Facility available to any Borrower unless the
Facility Agent has confirmed to the Parent and the Banks that it has received
or is satisfied (acting reasonably) that it will, subject only to the making of
an Advance, receive all of the documents and other evidence listed in Part 1
of Schedule 4 (Conditions Precedent)
and that each is (or will, when delivered, be), in form and substance
satisfactory to the Facility Agent (acting reasonably).

 

(b)                                 The Facility Agent’s confirmation given pursuant to paragraph (a) above
shall provide conclusive evidence that, subject to any conditions set out in
such confirmation, each of the conditions precedent described in Part 1 of
Schedule 4 (Conditions Precedent) shall have
been satisfied in accordance with the requirements of this Clause 3.1 (Initial Conditions Precedent) or been waived by the Facility
Agent and the Banks.

 

3.2                                 Additional Conditions Precedent

 

(a)                                  Save as the Banks may otherwise agree, the Banks shall not be obliged to
make any utilisation of any Facility available to any Borrower after the
Closing Date unless the Facility Agent has confirmed to the Parent and the
Banks that it has received all of the documents and other evidence listed in Part 2
of Schedule 4 (Conditions Precedent)
and that each is in form and substance satisfactory to the Facility Agent
(acting reasonably).

 

(b)                                 The Facility Agent’s confirmation given pursuant to paragraph (a) above
shall provide conclusive evidence that, subject to any conditions set out in
such confirmation, each of the conditions precedent described in Part 2 of
Schedule 4 (Conditions Precedent) shall have
been satisfied in accordance with the requirements of this Clause 3.2 (Additional Conditions Precedent) or been waived by the
Facility Agent and the Banks.

 

3.3                                 General Conditions Subsequent

 

(a)                                  The Parent shall procure (and each relevant Obligor shall ensure) as
soon as reasonably practicable after the Closing Date, but in any event on or
before the date that is 30 days after the Closing Date (or such later date as
the Facility Agent may agree) the delivery of restated audited consolidated
financial statements of the Group for each of the financial years ended 31 December 2003
and 31 December 2004 to the Facility Agent.

 

(b)                                 The Parent shall procure (and each relevant Obligor shall ensure) as
soon as reasonably practicable after the Closing Date, but in any event on or
before the date that is 60 days after the Closing Date (or such later date as
the Facility Agent may agree):

 

117

 

(i)                                     there shall have been delivered to the Security Agent certified copies
of all intra-group loan agreements for amounts in excess of €10,000,000
subsisting on the Closing Date; and

 

(ii)                                  Hertz Finance Centre plc accedes to the Intercreditor Deed in the
capacity of an Equity Finance Provider (as defined in the Intercreditor Deed)
and provides the Security Agent with such evidence as it may reasonably require
(including a legal opinion satisfactory to it acting reasonably) of its
conversion to a private company and its compliance with all applicable laws and
regulations in relation thereto, including all necessary procedures necessary
to ensure that such accession does not constitute unlawful financial
assistance.

 

(c)                                  The Parent shall procure (and each relevant Obligor shall ensure) that
as soon as reasonably practicable after the Closing Date, but in any event on
or before the date that is 90 days after the Closing Date (or such later date
as the Facility Agent may agree) all intra-group creditors and intra-group
debtors that are required to be parties to the Intercreditor Deed accede to the
Intercreditor Deed.

 

(d)                                 The Security Agent shall notify the Parent and the Banks upon being
satisfied (acting reasonably) that the conditions in each of
paragraphs (a), (b) and (c) of this Clause 3.3 have been
satisfied.

 

3.4                                 Several Obligations

 

The obligations of each Finance Party are several
and the failure by a Finance Party to perform its obligations hereunder shall
not affect the obligations of an Obligor towards any other party hereto nor
shall any other party be liable for the failure by such Finance Party to
perform its obligations hereunder.

 

3.5                                 Several Rights

 

The rights of each Finance Party are several and any
debt arising hereunder at any time from an Obligor to any Finance Party shall
be a separate and independent debt.  Each
such party shall be entitled to protect and enforce its individual rights
arising out of this Agreement (but, for the avoidance of doubt, not the
Security Documents) independently of any other party (so that it shall not be
necessary for any party hereto to be joined as an additional party in any
proceedings for this purpose).

 

3.6                                 Coordinator

 

(a)                                  Each Original Obligor hereby irrevocably appoints the Coordinator to act
as its agent for the purposes of the Finance Documents including, without
limitation, the delivery of Utilisation Notices and the execution of any
amendments or waivers contemplated under the terms of Clause 44 (Amendments).  Each
Additional Obligor shall appoint the Coordinator as its agent for the purposes
of the Finance Documents by the execution of an Accession Memorandum.  The Finance Parties may rely on a document
signed by the Coordinator as if the Coordinator and each other Obligor had
signed it.

 

118

 

(b)                                 The Coordinator shall be responsible for collecting and providing all
information required to be delivered, in each case, by any Obligor to any
Finance Party under this Agreement, including (i) the relevant Asset
Report on each Reporting Date (in the case of Advances other than Swingline
Advances) and, subject to Clause 4.3 (Delivery of an Asset
Report for Letters of Credit) and Clause 5.2(a) (Delivery of a Utilisation Notice for Swingline Advances),
the relevant Notification Date (in the case of Letters of Credit and Swingline
Advances) and (ii) the Utilisation Notices.

 

(c)                                  The Coordinator may give a good receipt for any amount payable by a
Finance Party to any Obligor.  Any
communication delivered to the Coordinator shall be deemed for the purposes of
any Finance Document to have been delivered to each member of the Group and
each other Obligor.  Any communication
made by the Coordinator to any Finance Party shall be deemed to have been made
with the consent of each other member of the Group and each other Obligor.

 

4.                                      UTILISATION OF THE FACILITIES

 

4.1                                 Utilisation Conditions

 

Save as otherwise provided herein, (i) an A1
Advance will be made by the Banks to an A1 Borrower, (ii) an A2 Advance
will be made to an A2 Borrower or (iii) a C Advance will be made or a
Letter of Credit will be issued by an L/C Issuer to a C Borrower, in each
case at the request of such Borrower, if:

 

(a)                                  not later than the date and time specified in the Timetable, the
Facility Agent has received a completed Utilisation Notice from the Coordinator
stating whether the utilisation is to be by way of an Advance or Letter of
Credit;

 

(b)                                 subject to Clause 4.3 (Delivery of an Asset
Report for Letters of Credit), not later than the time specified in
the Timetable on the relevant Reporting Date (in the case of an Advance) or the
relevant Notification Date (in the case of a Letter of Credit), the Facility
Agent has received the relevant Asset Report relating to such Borrower from the
Coordinator;

 

(c)                                  the Borrower (or, if such Borrower is a Financeco, its Related Opco) is
organised:

 

(i)                                     in the case of any Advance to be made in Sterling, in the United
Kingdom;

 

(ii)                                  in the case of any Advance to be made in Australian Dollars, in
Australia;

 

(iii)                               in the case of any Advance to be made in Canadian Dollars, in Canada;

 

(iv)                              in the case of any Advance to be made in Swiss Francs, in Switzerland;

 

(v)                                 in the case of any Advance (other than a C Advance, a C Swingline
Advance or an Advance under the A1 Italian Non-Guaranteed Tranche or the A2
Italian Non-Guaranteed Tranche) to be made in Euro, in any 

 

119

 

Core Country other than the United Kingdom, Australia, Canada and
Switzerland;

 

(vi)                              in the case of a C Advance, a C Swingline Advance or a Letter of Credit,
France or Spain; and

 

(vii)                           in the case of an Advance under the Italian Non-Guaranteed Tranches,
Italy;

 

(d)                                 the proposed Utilisation Date:

 

(i)                                     in the case of any A1 Advance or A2 Advance to be made for any purpose
set forth in Clause 2.2(a) (Purpose and Application of
each A Facility), or in the case of any C Advance or Letter of
Credit made for any purpose set forth in Clause 2.3(a) (Purpose and Application of C Facility), is the Closing Date;
and

 

(ii)                                  in the case of any A1 Advance or A2 Advance to be made for the purpose
set forth in Clause 2.2(b) (Purpose and Application of
each A Facility), or in the case of any C Advance or Letter of
Credit made for any purpose set forth in Clause 2.3(b) (Purpose and Application of C Facility), is a Specified
Business Day after the Closing Date within the Availability Period provided
that Advances (other than Swingline Advances) under each Facility will only be
made on the relevant Settlement Date, unless the relevant Instructing Group
otherwise agrees, and in the case of any Letter of Credit in respect of which
an Asset Report is required to be delivered pursuant to this Clause 4.1,
such Letter of Credit will only be made on a Settlement Date;

 

(e)                                  in the case of an A1 Advance or an A2 Advance requested on the
Settlement Date relating to the Optional A Calculation Date, such Borrower’s
A1 Borrowing Base or A2 Borrowing Base (as the case may be) on such
Settlement Date exceeds such Borrower’s A1 Borrowing Base or A2 Borrowing
Base (as the case may be) on the Closing Date;

 

(f)                                    in the case of an A1 Advance or an A2 Advance, on the proposed
Utilisation Date for such Advance, not less than 30 per cent. of the aggregate
Euro Amount of all Advances which have been made to such Borrower and which
will be outstanding under each A Facility on the proposed Utilisation Date
(including the proposed Advance) are repayable on the Settlement Date which
immediately follows such proposed Utilisation Date (the “Minimum Repayment Amount”), provided that
if the aggregate outstanding Euro Amount of all Advances which have been made
to such Borrower under each A Facility and which are repayable on such
Settlement Date is less than the Minimum Repayment Amount, such Borrower may
request an Advance under the A Facility in an aggregate amount not exceeding
the difference between the aggregate outstanding Euro Amount of all Advances
which will have been made to such Borrower under each A Facility and which are
payable on such Settlement Date and the Minimum Repayment Amount (the “Rebalancing Advance”) provided that
immediately following the making of such Advance the aggregate outstanding
Designated Currency Amount of all Advances to 

 

120

 

such Borrower under such Facility would not exceed such Borrower’s A1
Borrowing Base or A2 Borrowing Base (as the case may be);

 

(g)                                 the proposed amount of such Advance is:

 

(i)                                     if less than the relevant Available Facility, in relation to:

 

(A)                              the
A1 Facility, an amount equal to at least £2,000,000 (in the case of the A1
Sterling Tranche), AUD3,000,000 (in the case of the A1 Australian Dollar
Tranche), CAD3,000,000 (in the case of the A1 Canadian Dollar Tranche),
CHF500,000 (in the case of the A1 Swiss Franc Tranche) and €3,000,000 (in the
case of the A1 Euro Tranche), €500,000 (in the case of the A1 Italian
Non-Guaranteed Tranche) and €3,500,000 (in the case of a Permitted Euro
Tranche), provided that the aggregate of the Euro Amount of all A1 Advances on such
Utilisation Date shall be equal to at least €5,000,000,

 

(B)                                the
A2 Facility, an amount equal to at least £285,500 (in the case of the A2
Sterling Tranche), AUD428,500 (in the case of the A2 Australian Dollar
Tranche), CAD428,500 (in the case of the A2 Canadian Dollar Tranche), CHF71,000
(in the case of the A2 Swiss Franc Tranche) and €428,500 (in the case of the
A2 Euro Tranche), €71,000 (in the case of the A2 Italian Non-Guaranteed
Tranche) and €500,000 (in the case of a Permitted Euro Tranche), provided that
the aggregate of the Euro Amount of all A2 Advances on such Utilisation Date
shall be equal to at least €1,000,000; or

 

(C)                                the
C Facility, €1,000,000; or

 

(ii)                                  equal to the amount of such Available Facility;

 

(h)                                 (in respect of a Letter of Credit) the proposed Face Amount of such
Letter of Credit is, subject to Clause 2.1(e) (Grant of the
Facilities), less than or equal to the Available Facility in
relation to the C Facility;

 

(i)                                     (in respect of a Letter of Credit) the proposed Term of the Letter of
Credit is a period not exceeding 12 months ending on or prior to the earlier of
(i) 10 Business Days before the Final Maturity Date and (ii) 12
months after the date of issuance;

 

(j)                                     (in respect of an Advance other than a Rollover Advance) the interest
rate applicable to such Advance during its Term would not fall to be determined
pursuant to Clause 9.1 (Market Disruption);

 

(k)                                  (in respect of a Letter of Credit) the L/C Issuer and the Facility Agent
have each approved the terms of the Letter of Credit (which, unless the
Facility Agent otherwise agrees in writing, shall be substantially in the form
set out in Schedule 11 (Form of Letter of
Credit)), the purpose of its issue and the identity of the
beneficiary;

 

121

 

(l)                                     on and as of the proposed Utilisation Date (save in relation to a
Rollover Advance) and subject to Clause 4.2 (Certain
Funds Conditions) (i) no Event of Default or Potential Event of
Default is continuing or would result from the proposed utilisation and (ii) the
Repeated Representations are true in all material respects, provided that the
Facility Agent may assume that this condition has been satisfied unless it has
received any notification to the contrary from the Parent, such Borrower, the
Coordinator or any other person prior to the Utilisation Date;

 

(m)                               on and as of the proposed Utilisation Date in relation to a Rollover
Advance, no declaration of acceleration of any Advance, no requirements to
prepay Letters of Credit nor cancellation of any Commitment shall have been
made pursuant to Clause 23.16 (Acceleration and
Cancellation);

 

(n)                                 immediately following the making of such Advance:

 

(i)                                     in the case of an A1 Advance:

 

(A)                              the
aggregate outstanding Designated Currency Amount of all A1 Advances to such A1
Borrower would not exceed such Borrower’s A1 Borrowing Base;

 

(B)                                the
aggregate outstanding Base Currency Amount of all A1 Advances under each
A1 Tranche would not exceed the aggregate amount of each Bank’s Commitment in
relation to such A1 Tranche; and

 

(C)                                the
Euro Amount of the A1 Outstandings would not exceed the Euro Amount of the
Total A1 Commitments at such time;

 

(ii)                                  in the case of an A2 Advance:

 

(A)                              the
aggregate outstanding Designated Currency Amount of all A2 Advances to such A2
Borrower would not exceed such Borrower’s A2 Borrowing Base;

 

(B)                                the
aggregate outstanding Base Currency Amount of all A2 Advances under each
A2 Tranche would not exceed the aggregate amount of each Bank’s Commitment in
relation to such A2 Tranche; and

 

(C)                                the
Euro Amount of the A2 Outstandings would not exceed the Euro Amount of the
Total A2 Commitments at such time; and

 

(iii)                               in the case of a C Advance or a Letter of Credit:

 

(A)                              the
aggregate outstanding Designated Currency Amount of all C Advances and Letters
of Credit to such C Borrower would not exceed such Borrower’s C Borrowing Base;
and

 

(B)                                the
Euro Amount of the C Outstandings would not exceed the Euro Amount of the Total
C Commitments at such time.

 

122

 

(o)                                 following the making of such Advance if such Advance is a Canadian
Advance, there shall be no more than 10 separate Canadian Advances in existence
at any one time.

 

4.2                                 Certain Funds Conditions

 

Following satisfaction of the conditions precedent
pursuant to Clause 3.1 (Initial Conditions
Precedent) and subject to compliance with the requirements of
Clause 4.1 (Utilisation Conditions) an
Advance during the Certain Funds Period will be made available by the Banks
despite a failure to satisfy the requirements of Clause 4.1(l) (Utilisation Conditions) only if no Certain Funds Event of
Default has occurred and no Change of Control has occurred.

 

4.3                                 Delivery of an Asset Report for Letters of Credit

 

A C Borrower shall not be required to deliver an
Asset Report in relation to a Letter of Credit if:

 

(a)                                  the aggregate Euro Amount of the C Borrowing Base for such C Borrower,
as determined on the immediately preceding Reporting Date, exceeds the
aggregate outstanding Euro Amount (without double-counting) of all C Advances
and Letters of Credit to such C Borrower, as determined on the Utilisation Date
relating to such Letter of Credit to such C Borrower after giving effect to all
C Advances and Letters of Credit to be made on such Utilisation Date to such C
Borrower (such excess amount, the “L/C
Available Borrowing Base”); and

 

(b)                                 the aggregate amount of the proposed utilisation does not exceed the L/C
Available Borrowing Base.

 

4.4                                 Completion of Letters of Credit

 

The relevant L/C Issuer is authorised to issue any
Letter of Credit pursuant to Clause 4.1 (Utilisation
Conditions) by:

 

(a)                                  completing the issue date and the proposed Expiry Date of such Letter of
Credit; and

 

(b)                                 executing and delivering such Letter of Credit to the relevant recipient
on the Utilisation Date.

 

4.5                                 Renewal of a Letter of Credit

 

(a)                                  Not later than the date and time specified in the Timetable before the
Expiry Date of a Letter of Credit a C Borrower may, by written notice to the
FacilityAgent (with a copy to the L/C Issuer), request that the Term of such
Letter of Credit be extended.

 

(b)                                 The Finance Parties shall treat such request in the same way as a
Utilisation Notice for a Letter of Credit save that the conditions set out in
Clause 4.1(a) (Utilisation Conditions)
and Clause 4.1(k) (Utilisation Conditions)
shall not apply.

 

123

 

(c)           The terms of each renewed Letter of Credit
shall be the same as those of the relevant Letter of Credit immediately prior
to its renewal, save that its Term shall commence on the date which was the
Expiry Date of such Letter of Credit immediately prior to its renewal and shall
end on the proposed Expiry Date specified in such request.

 

(d)           The relevant L/C Issuer is authorised to amend
any such Letter of Credit pursuant to such request in paragraph (a) above
in accordance with paragraph (c) above if the conditions set out in
this Agreement have been complied with.

 

4.6                                 Each Bank’s Participation in
Advances

 

(a)           The Facility Agent will, not later than the
time specified in the Timetable on the relevant Information Date, notify each
Bank of its respective Proportion of an Advance to be made under a Facility on
the next succeeding Settlement Date in relation to such Facility.

 

(b)                                 Save as otherwise provided in
Clause 4.8 (Canadian Advances) and otherwise
herein, each Bank will participate through its relevant Facility Office in each
Advance made or Letter of Credit issued pursuant to this Clause 4 in its
respective Proportion.

 

4.7                                 Restrictions on Participation in
Letters of Credit

 

If at any time prior to the issue of a Letter of
Credit any Bank is prohibited either by law or pursuant to any requirement of
any central bank or other fiscal, monetary or other authority from having any
right or obligation under this Agreement in respect of such Letter of Credit,
such Bank shall subject to Clause 18 (Mitigation and Other
Provisions Relating to Taxes and Increased Costs) notify the
Facility Agent on or before the Business Day prior to the proposed Utilisation
Date and:

 

(a)                                  the Face Amount of such Letter of
Credit shall be reduced by an amount equal to what would have been the amount
of such Bank’s L/C Proportion of such Letter of Credit if such prohibition had
not occurred;

 

(b)                                 the L/C Proportion of such Bank in
relation to such Letter of Credit shall be nil; and

 

(c)                                  such Bank’s Available Commitment
shall (in relation to such Letter of Credit only) be reduced by an amount equal
to what would have been the amount of such Bank’s L/C Proportion of such Letter
of Credit if such prohibition had not occurred.

 

4.8                                 Canadian Advances

 

(a)           The Canadian Permitted Bank shall make each
Canadian Advance prior to the issuance of a Notice of Exercise of Sale Right.

 

(b)           Prior to the issuance of a Notice of Exercise
of Sale Right and concurrently with the making and funding of each Canadian
Advance by the Canadian Permitted Bank, the Canadian Permitted Bank shall be
deemed to have 

 

124

 

purchased and received from each Non-Canadian Bank and each
Non-Canadian Bank shall be deemed irrevocably, immediately and unconditionally
to have sold to the Canadian Permitted Bank, without recourse or warranty and
for the consideration described in Clause 26 (Canadian
Permitted Bank Fees), a right (each a “Canadian Revolving Sale Right”) exercisable solely at the
option of the Canadian Permitted Bank as permitted under Clause 23.20 (Exercise of Sale Right) to sell to the Non-Canadian Bank,
and thereupon to mandatorily and irrevocably require the Non-Canadian Bank to
purchase and assume, the Non-Canadian Bank’s Canadian Pro-Rata Share of (i) all
Canadian Outstandings and (ii) the Commitments of the Canadian Permitted
Bank in respect of the A1 Canadian Dollar Tranche and the A2 Canadian
Dollar Tranche.  For the avoidance of
doubt, no Non-Canadian Bank shall have any ownership right, title or interest,
legal or beneficial, in any Canadian Outstandings in respect of a Facility, or
shall be entitled to receive any payments of principal or interest thereon, or
any other amounts in respect thereof, unless and until the Non-Canadian Bank’s
purchase of an ownership interest in such Canadian Outstandings upon the
exercise of a Canadian Revolving Sale Right by the Canadian Permitted Bank in
respect of such Canadian Outstandings pursuant to Clause 23.20 (Exercise of Sale Right).

 

(c)                                  If any Canadian Advance is made
after a Notice of Exercise of Sale Right has been issued each Non-Canadian Bank
with a Commitment under the A1 Canadian Dollar Tranche or the A2 Canadian
Dollar Tranche (as applicable) shall fund its Canadian Pro-Rata Share of such
Canadian Advance.

 

(d)                                 If BNP Paribas ceases to be the
Facility Agent, the Non-Canadian Banks may, by unanimous consent, provide
notice to the Canadian Permitted Bank that they will cancel their obligation to
purchase, pursuant to Clause 23.20 (Exercise of Sale Right),
the Non-Canadian Bank’s Canadian Pro-Rata Share of (i) all Canadian
Outstandings and (ii) the Commitments of the Canadian Permitted Bank in
respect of the A1 Canadian Dollar Tranche and the A2 Canadian Dollar Tranche
and any A Swingline Facility on the date which is 30 days after receipt of
such notice by the Canadian Permitted Bank (the “Canadian Permitted Bank Sale Date”), and the Canadian
Permitted Bank agrees to transfer all of the foregoing interests to the
successor which shall be named in such notice on such date provided that such
successor shall satisfy paragraph (b)(i) or (b)(ii) of the
definition of “Qualifying Bank”.  Notwithstanding the foregoing, at the sole
discretion of the Canadian Permitted Bank, the Canadian Permitted Bank may
elect, by providing notice to the Non-Canadian Banks prior to the Canadian
Permitted Bank Sale Date, to only transfer such interests to the extent of its
Canadian Sale Right and otherwise retain its Canadian Outstanding and
Commitments under the A1 Canadian Dollar Tranche and the A2 Canadian Dollar
Tranche and any A Swingline Facility.

 

4.9                                 Reduction of Available Commitment

 

If a Bank’s Commitment is reduced pursuant to
Clause 13 (Cancellation and Prepayment) or
Clause 17 (Illegality) after the Facility
Agent has received the Utilisation Notice pursuant to this Clause 4 or a
request for an extension of the Term of a Letter of Credit pursuant to
Clause 4.5 (Renewal of a Letter of Credit)
and such

 

125

 

reduction was not taken into account in calculating
the relevant Available Facility, then the amount of the relevant Advance or
Letter of Credit shall be reduced accordingly provided that in the case of any
Advance or Letter of Credit to be made by a Bank or L/C Issuer (as the case may
be) to an Australian Borrower the reduction shall not at any time cause the
principal amount outstanding on the Loan Note referable to that Advance to be
less than the Minimum Principal Loan Note Amount.

 

5.                                      UTILISATION OF THE SWINGLINE FACILITIES

 

5.1                                 General

 

The following provisions do not apply to Swingline
Advances:

 

(a)                                  Clauses 2.2 (Purpose and Application of each A Facility) and 2.3 (Purpose and Application of C Facility); and

 

(b)                                 Clause 4 (Utilisation
of the Facilities).

 

5.2                                 Delivery of a Utilisation Notice for
Swingline Advances

 

(a)                                     An A1 Borrower, A2 Borrower or a C
Borrower may utilise the corresponding Swingline Facility by delivery (through
the Coordinator) to the Facility Agent of a duly completed Utilisation Notice,
together with the relevant Asset Report, not later than the time specified in
the Timetable on the relevant Notification Date provided that the Coordinator
shall not be required to deliver such Asset Report if:

 

(i)            the aggregate Euro Amount of the A1 Borrowing
Base, the A2 Borrowing Base or the C Borrowing Base (as the case may be)
for such Borrower, as determined on the immediately preceding Reporting Date,
exceeds the aggregate outstanding Euro Amount (without double-counting) of all
Advances and Letters of Credit made to such Borrower under the A1 Facility, the
A2 Facility or the C Facility (as the case may be), as determined on the
Utilisation Date relating to such Swingline Advance after giving effect to all
Advances and Letters of Credit to be made on such Utilisation Date under such
Facility to such Borrower (such excess amount, the “Swingline Available Borrowing Base”);

 

(ii)           the aggregate amount of the proposed
utilisation does not exceed the Swingline Available Borrowing Base; and

 

(iii)          the Base Currency Amount of the Swingline
Advance does not exceed the Available Facility in relation to the relevant
Facility or Tranche.

 

(b)                                 In the event that the Commissioner
of State Revenue in Queensland makes an assessment of stamp duty in respect of
any of the Initial Security Documents, the Australian Orphan SPV will:

 

(i)                                     be deemed to have issued a
Utilisation Notice for an A1 Swingline Advance denominated in Australian
Dollars in an amount equal to such stamp duty; and

 

126

 

(ii)           be taken to have authorised the Facility Agent
to apply such amount directly in discharge of such liability without first
paying such amount to the Australian Orphan SPV,

 

provided that the aggregate amount of all A1
Swingline Advances made or deemed to be made pursuant to this paragraph (b) shall
not at any time exceed the A1 Australian Dollar Reserve Amount.

 

5.3                                 Completion of a Utilisation Notice
for Swingline Advances

 

(a)                                  Each Utilisation Notice for a
Swingline Advance is irrevocable and will not be regarded as having been duly
completed unless:

 

(i)            it identifies the relevant A1 Borrower, A2
Borrower or C Borrower and such Borrower (or, if such Borrower is a Financeco,
its Related Opco) is organised:

 

(A)                              in
the case of any Swingline Advance to be made in Sterling, the United Kingdom;

 

(B)                                in
the case of any Swingline Advance to be made in Australian Dollars, Australia;

 

(C)                                in
the case of any Swingline Advance to be made in Canadian Dollars, Canada;

 

(D)                               in
the case of any Swingline Advance to be made in Swiss Francs, Switzerland; and

 

(E)                                 in
the case of any Swingline Advance to be made in Euro, any Core Country other
than the United Kingdom, Australia, Canada and Switzerland;

 

(ii)                                  it specifies that it is for an A1
Swingline Advance, A2 Swingline Advance or C Swingline Advance;

 

(iii)                               the proposed Utilisation Date is a
Specified Business Day occurring within the Availability Period;

 

(iv)                              the Swingline Advance is denominated
in the relevant Designated Currency; and

 

(v)                                 the proposed amount of such Swingline
Advance is:

 

(A)                              if
less than the Available Facility in relation to:

 

(x)            the A1 Swingline Facility,
an amount equal to at least £1,000,000 (if denominated in Sterling),
AUD3,000,000 (if denominated in Australian Dollars), CAD2,000,000 (if denominated
in Canadian Dollars), CHF500,000 (if denominated in Swiss Francs) and
€2,000,000 (if denominated in Euro) provided that the aggregate of the

 

127

 

Euro Amount of all A1
Swingline Advances on such Utilisation Date shall be equal to at least
€2,000,000;

 

(y)                                 the
A2 Swingline Facility, an amount equal to at least £142,500 (if denominated in
Sterling), AUD428,500 (if denominated in Australian Dollars), CAD285,500 (if
denominated in Canadian Dollars), CHF71,000 (if denominated in Swiss Francs)
and €285,500 (if denominated in Euro), provided that the aggregate of the Euro
Amount of all A2 Swingline Advances on such Utilisation Date shall be equal to
at least €285,500;

 

(z)                                   the
C Swingline Facility, €1,000,000; or

 

(B)                                equal
to the amount of such Available Facility;

 

(vi)                              immediately following the making of
such Swingline Advance:

 

(A)                              in
the case of an A1 Swingline Advance:

 

(x)            unless such Advance is made
pursuant to the Swingline Available Borrowing Base, such Advance would not
exceed the A1 Advance Rate of the purchase price of the New Vehicles to be
financed from the proceeds of such Advance;

 

(y)                                 the
aggregate outstanding Base Currency Amount of all A1 Advances under each A1
Tranche would not exceed the aggregate amount of each Bank’s Commitment in
relation to such A1 Tranche; and

 

(z)            the Euro Amount of the A1
Outstandings in respect of A1 Swingline Advances would not exceed the  Euro Amount of the Total A1 Swingline
Commitments at such time;

 

(B)                                in
the case of an A2 Swingline Advance:

 

(x)            unless such Advance is made
pursuant to the Swingline Available Borrowing Base, such Advance would not
exceed the A2 Advance Rate of the purchase price of 

the New Vehicles
to be financed from the proceeds of such Advance;

 

(y)           unless such Advance is made
pursuant to the Swingline Available Borrowing Base, the aggregate outstanding
Base Currency Amount of all A2 Advances under each A2 Tranche would not exceed
the aggregate amount of each Bank’s Commitment in relation to such A2 Tranche;
and

 

128

 

(z)            the Euro Amount of the A2
Outstandings in respect of A2 Swingline Advances would not exceed the  Euro Amount of the Total A2 Swingline
Commitments at such time; and

 

(C)           in
the case of a C Swingline Advance:

 

(x)            unless such Advance is made
pursuant to the Swingline Available Borrowing Base, such Advance would not
exceed the C Advance Rate of the purchase price of the New Equipment to be
financed from the proceeds of such Advance; and

 

(y)                                 the
Euro Amount of the C Outstandings in respect of C Swingline Advances would not
exceed the  Euro Amount of the Total C
Swingline Commitments at such time.

 

(b)                                 Only one Swingline Advance may be
requested in each Utilisation Notice.

 

5.4                                 Swingline Banks’ Participation

 

(a)                                  Save as otherwise provided in
paragraphs (d), (e) and (f) below, if the conditions set out in
this Agreement have been met, each A1, A2 or C Swingline Bank shall
participate through its relevant Facility office in each Swingline Advance
available made pursuant to this Clause 5 in its respective proportion.

 

(b)                                 The relevant Swingline Banks will
only be obliged to comply with paragraph (a) above if on the date of
the relevant Utilisation Notice and on the relevant proposed Utilisation Date:

 

(i)            no Event of Default or Potential Event of
Default is continuing or would result from the proposed utilisation; and

 

(ii)           the Repeating Representations are true in all
material respects, provided that the Facility Agent may assume that this condition
has been satisfied unless it has received any notification to the contrary from
the Parent, such Borrower, the Coordinator or any other person prior to the
Utilisation Date,

 

(c)                                  Save as otherwise provided in
paragraphs (d), (e) and (f) below, the amount of each relevant
Swingline Bank’s participation in each Swingline Advance will be equal to its
Proportion adjusted to take account of any limit applying under Clause 5.5  (Relationship with the
Other Facilities).

 

(d)                                 The Canadian Permitted Bank shall
make each Canadian Swingline Advance prior to the issuance of a Notice of
Exercise of Sale Right.

 

(e)                                  Prior to the issuance of a Notice of
Exercise of Sale Right and concurrently with the making and funding of each
Canadian Swingline Advance by the Canadian Permitted Bank, the Canadian
Permitted Bank shall be deemed to 

 

129

 

have purchased and received from each Non-Canadian Bank and each
Non-Canadian Bank shall be deemed irrevocably, immediately and unconditionally
to have sold to the Canadian Permitted Bank, without recourse or warranty and
for the consideration described in Clause 26 (Canadian
Permitted Bank Fees), a right (each a “Canadian Swingline Sale Right”) exercisable solely at the
option of the Canadian Permitted Bank as permitted under Clause 23.20 (Exercise of Sale Right) to sell to the Non-Canadian Bank,
and to mandatorily and irrevocably require the Non-Canadian Bank to purchase
and assume, the Non-Canadian Bank’s Canadian Pro-Rata Share of all Canadian
Outstandings in respect of such Swingline Facility adjusted to take account of
any limit applying under Clause 5.5 (Relationship with the
Other Facilities).  For the
avoidance of doubt, no Non-Canadian Bank shall have any ownership right, title or
interest, legal or beneficial, in any Canadian Outstandings in respect of a
Swingline Facility, or shall be entitled to receive any payments of principal
or interest thereon, or any other amounts in respect thereon, unless and until
the Non-Canadian Bank’s purchase of an ownership interest in such Canadian
Outstandings in respect of such Swingline Facility upon the exercise of a
Canadian Swingline Sale Right by the Canadian Permitted Bank in respect of such
Canadian Outstandings in respect of such Swingline Facility pursuant to
Clause 23.20 (Exercise of Sale Right).

 

(f)                                    If any Canadian Swingline Advance is
made after a Notice of Exercise of Sale Right has been issued each Non-Canadian
Bank with a Commitment under any A Swingline Facility shall fund its Canadian
Swingline Pro-Rata Share of such Canadian Swingline Advance.

 

5.5                                 Relationship with the Other
Facilities

 

(a)                                  This Clause 5.5 applies when a
Swingline Advance is outstanding or is to be borrowed.

 

(b)                                 Each of the A1 Facility, the A2
Facility and the C Facility may be used by way of Swingline Advances.  The Swingline Facilities are not independent
of the A1 Facility, A2 Facility or the C Facility.

 

(c)                                  Notwithstanding any other term of
this Agreement, a Bank is only obliged to participate in an Advance (including
a Swingline Advance) to the extent that it would not result in the aggregate
Euro Amount of its participation and that of a Bank which is its affiliate in
the Advances exceeding its Overall Commitment in relation to the A1 Facility,
the A2 Facility or the C Facility (as the case may be).

 

(d)                                 Where, but for the operation of
paragraph (c) above, the Euro Amount of a Bank’s participation and
that of a Bank which is its affiliate in the relevant Advance (including a
Swingline Advance) would have exceeded its Overall Commitment in relation to
the A1 Facility, the A2 Facility or the C Facility (as the case may be), the
excess will be apportioned among the other Banks participating in the relevant
Advance pro rata according to their relevant Commitments in relation to such
Facility.  This calculation will be
applied as often as necessary until the relevant Advance is apportioned among
the relevant Banks in a manner consistent with paragraph (c) above.

 

130

 

(e)                                  For the purposes of paragraphs (c) and
(d) above, a participation in an Advance will include a Bank’s Canadian
Pro-Rata Share of any Canadian Advance.

 

6.                                      SWINGLINE
ADVANCES

 

6.1                                 Swingline

 

Upon the terms and subject to the conditions of this
Agreement:

 

(a)                                  the A1 Swingline Banks make available to the A1
Borrowers a multicurrency swingline loan facility in an aggregate amount equal
to the Total A1 Swingline Commitments;

 

(b)                                 the A2 Swingline Banks make available to the A2
Borrowers a second ranking multicurrency swingline loan facility in an
aggregate amount equal to the Total A2 Swingline Commitments; and

 

(c)                                  the C Swingline Banks make available
to the C Borrowers a swingline loan facility in an aggregate amount equal to
the Total C Swingline Commitments in Euro.

 

6.2                                 Purpose

 

(a)                                  Each A1 Borrower or A2 Borrower shall apply all
amounts borrowed by it under any A Swingline Facility towards the purpose set
out in Clause 2.2(b) (Purpose and Application of
each A Facility) provided that, subject to Clause 5.2(b) (Delivery of a Utilisation Notice for Swingline Advances),
the proceeds of any A1 Swingline Advance made pursuant to Clause 5.2(b) (Delivery of a Utilisation Notice for Swingline Advances),
shall be applied towards payment of any stamp duty assessed by the Commissioner
of State Revenue in Queensland in respect of any of the Initial Security
Documents relating to any Advances made in Australian Dollars in relation to
the A1 Swingline Facility.

 

(b)                                 Each C Borrower shall apply all
amounts borrowed by it under the C Swingline Facility towards the purpose
set out in Clause 2.3(b) (Purpose and Application of
C Facility).

 

6.3                                 Swingline Agent

 

(a)                                  The Facility Agent may perform its
duties in respect of the Swingline Facilities through an affiliate acting as
its agent.

 

(b)                                 Notwithstanding any other term of
this Agreement and without limiting the liability of any Obligor under the
Finance Documents, each Bank shall (according to its Proportion of the Euro
Amount of the Total A1 Commitments, Total A2 Commitments or the Total C
Commitments, as appropriate or, if the Total A1 Commitments, Total A2
Commitments or the Total C Commitments, as appropriate, are then zero, to its
Proportion of the Euro Amount of the Total A1 Commitments, Total A2 Commitments
or the Total C Commitments immediately prior to their reduction to zero) pay to
or

 

131

 

indemnify the Facility Agent, within three
Business Days of demand, for or against any cost, loss or liability incurred by
the Facility Agent or its affiliate (other than by reason of the Facility Agent’s
or its affiliate’s gross negligence or wilful misconduct) in acting as Facility
Agent for the Swingline Facilities under the Finance Documents (unless the
Facility Agent or its affiliate has been reimbursed by an Obligor pursuant to a
Finance Document).

 

6.4                                 Conditions of assignment or transfer

 

Notwithstanding any other term of this Agreement,
each Bank shall ensure that at all times its Overall Commitment in relation to
the A1 Facility, the A2 Facility or the C Facility (as the case may be) is
not less than:

 

(a)                                  its Swingline Commitment in relation
to such Facility; or

 

(b)                                 if it does not have a Swingline
Commitment in relation to such Facility, the Swingline Commitment in relation
to such Facility of a Bank which is its affiliate.

 

7.                                      LETTER OF CREDIT
COMMISSION, L/C ISSUER FEE AND COSTS AND EXPENSES

 

7.1                                 Letter of Credit Commission

 

The relevant C Borrower shall, in respect of each
Letter of Credit requested by it, pay to the Facility Agent for the account of
each Bank (for distribution in proportion to each Bank’s L/C Proportion of such
Letter of Credit) a letter of credit commission at the L/C Commission Rate on
the Face Amount of the relevant Letter of Credit.  Such letter of credit commission shall be
paid in arrear in respect of each successive period of three months (or such
shorter period as shall end on the relevant Expiry Date) which begins during
the Term of the relevant Letter of Credit, such payments to be made on the last
day of each such period.

 

7.2                                 L/C Issuer Fee

 

The relevant C Borrower shall, in respect of each
Letter of Credit, pay to the relevant L/C Issuer (for its own account) a fee in
Euro in the amounts and at the times agreed between such L/C Issuer and the
relevant C Borrower.

 

7.3                                 Costs and Expenses

 

In addition to Clauses 7.1 (Letter of Credit Commission) and 7.2 (L/C Issuer
Fee), each C Borrower agrees to pay or reimburse any L/C Issuer for
such normal and customary costs and expenses as are incurred or charged by such
L/C Issuer in issuing, effecting payment under, amending or otherwise
administering any Letter of Credit issued by such L/C Issuer.

 

132

 

8.                                      PAYMENT AND
CALCULATION OF INTEREST

 

8.1                                 Payment of Interest

 

On the Repayment Date relating to each Advance, the
relevant Borrower shall pay accrued interest on that Advance.

 

8.2                                 Calculation of Interest

 

The rate of interest applicable to an Advance from
time to time during its Term shall be the rate per annum which is the sum of:

 

(a)                                  the Applicable Margin;

 

(b)                                 the Mandatory Cost Rate; and

 

(c)                                  in relation to:

 

(i)                                     any Advance (other than a Swingline
Advance) which is denominated in:

 

(A)                              Euro,
EURIBOR;

 

(B)           Canadian Dollars, the BA
Rate or, subject to paragraphs (b) and (c) of the definition of “BA Rate”, an interpolation of the BA Rate and CORRA;

 

(C)                                Australian
Dollars, BBSY; or

 

(D)                               any
other currency, LIBOR;

 

(ii)                                  any Swingline Advance (other than a
Canadian Swingline Advance), the relevant Swingline Rate; and

 

(iii)                               any Canadian Swingline Advance, the
Canadian Swingline Rate.

 

8.3                                 Effective Global Rate (Taux Effectif Global)

 

For the purposes of articles L. 313-1 et seq. of the
French Code de la Consommation, the parties
acknowledge that by virtue of certain characteristics of the Facilities (and in
particular the variable interest rate applicable to the Advances, the effective
global rate (taux effectif global) of the
Facilities made available to the French Borrowers cannot be calculated at the
date of this Agreement.  However, the
French Borrowers on the date of this Agreement acknowledge or on the date of
their accession to this Agreement will acknowledge, that they have each
received from the Facility Agent a duly completed letter (a “TEG Letter”) in the form set out in Schedule 12 (Form of TEG Letter) containing an indicative
calculation of the effective global rate (taux effectif global)
of the Facilities, based on figured examples calculated on assumptions set out
in that TEG Letter.  The parties
acknowledge that each such TEG Letter forms an integral part of this Agreement.

 

133

 

8.4                                 Italian Law Interest Cap

 

Notwithstanding any other term of this Agreement, if
at any time the annual effective global rate (tasso annuo effectivo globale –
TAEG) pursuant to Article 2 of Law no. 108 of 17 March 1996 and
the relevant implementing legislation) of a Facility payable by an Obligor
incorporated under the laws of Italy under this Agreement would result in a
breach of Italian usury law, then any such payment shall be capped, for the
shortest period possible (if applicable), at the maximum amount permitted to be
payable by such Obligor under Italian usury law.

 

9.                                      MARKET
DISRUPTION AND ALTERNATIVE INTEREST RATES

 

9.1                                 Market Disruption

 

(a)                                  If, in relation to any Advance
(other than a BA Rate Loan or a Swingline Advance) or Unpaid Sum:

 

(i)                                     at or about the time specified in
this Agreement on the Quotation Date (or other relevant date of determination
as specified in this Agreement), the appropriate Screen Rate is not displayed
and none or only one of the relevant Reference Banks supplies a rate for the
purpose of determining the relevant interbank rate for the relevant Interest
Period or Term; or

 

(ii)                                  before 5.00 p.m. in Paris on
the Quotation Date for such Advance or Unpaid Sum the Facility Agent has been
notified by a Bank or each of a group of Banks to whom in aggregate fifty per
cent. or more of such Advance or Unpaid Sum is owed (or, in the case of an
undrawn Advance, if made, would be owed) that the relevant interbank rate does
not accurately reflect the cost of funding its participation in such Advance or
Unpaid Sum,

 

then, the Facility Agent shall promptly notify the
Parent and the Banks (by telefax or by telephone) of such event and,
notwithstanding anything to the contrary in this Agreement, Clause 9.2 (Substitute Interest Period and Interest Rate) shall apply to
such Advance (if it is a Rollover Advance) or Unpaid Sum.  If paragraph (a) or (b) of
this Clause 9.1 applies to a proposed Advance (being an Advance which is
not (i) a Rollover Advance or (ii) an Advance to fund payment of a
Letter of Credit under Clause 12.6 (Advances to meet Demands
in respect of Letters of Credit) (an “Incremental
Advance”)), such Incremental Advance shall not be made.

 

(b)                                 If, by reason of circumstances
affecting the Canadian money market generally, as determined by the Facility
Agent (acting reasonably), there is no market for Canadian Dollar bankers’
acceptances, the right of a Canadian Borrower to request a BA Rate Loan shall
be suspended until the circumstances causing the suspension no longer exist,
and until such time, any Utilisation Notice which is outstanding for BA Rate
Loans shall be cancelled and the Canadian Borrower may only obtain Canadian
Swingline Advances.

 

134

 

9.2                                 Substitute Interest Period and
Interest Rate

 

If Clause 9.1(a)(i) (Market
Disruption) or Clause 9.1(a)(ii) (Market
Disruption) applies to an Advance or Unpaid Sum, the rate of
interest applicable to each Bank’s portion of such Advance or Unpaid Sum during
the relevant Interest Period or Term shall (subject to any agreement reached
pursuant to Clause 9.3 (Alternative Rate))
be the rate per annum which is the sum of:

 

(a)                                  the Applicable Margin; and

 

(b)                                 the rate per annum notified to the
Facility Agent by such Bank (which the Facility Agent shall promptly notify to
the Parent) before the last day of such Interest Period or Term to be that
which expresses as a percentage rate per annum the cost to such Bank of funding
from whatever sources are available to it its portion of such Advance or Unpaid
Sum during such Interest Period or Term. 
Such notification shall include a reasonably detailed explanation of the
calculation of such rate.

 

9.3                                 Alternative Rate

 

If (a) either of those events mentioned in
Clauses 9.1(a)(i) and Clause 9.1(a)(ii) (Market Disruption) occurs in relation to an Advance or
Unpaid Sum or (b) by reason of circumstances affecting the relevant
interbank market during any period of three consecutive Business Days the
relevant interbank rate is not available for the relevant currency to prime
banks in the relevant interbank market, then if the Facility Agent or the
Parent so requires, the Facility Agent and the Parent shall enter into
negotiations in good faith and using commercially reasonable efforts to
minimise the interest cost to the Parent with a view to agreeing a substitute
basis (i) for determining the rates of interest from time to time
applicable to the Advances and Unpaid Sums and/or (ii) upon which the
Advances and Unpaid Sums may be maintained (whether in Euro or some other
currency) thereafter and any such substitute basis that is agreed shall take
effect in accordance with its terms and be binding on each party hereto,
provided that the Facility Agent may not agree any such substitute basis
without the prior consent of an Instructing Group in respect of the relevant
Facility.

 

10.                               NOTIFICATION

 

10.1                           Advances and Letters of Credit

 

No later than (a) the case of any Advance other
than a Swingline Advance, the applicable time specified in the Timetable on the
relevant Information Date and (b) in the case of any Swingline Advance or
Letter of Credit, the applicable time specified in the Timetable on the
relevant Notification Date, the Facility Agent shall, in respect of any Advance
made or to be made or Letter of Credit issued or to be issued under the
Facility, deliver a Notification, together with a copy of any Asset Report
required to be delivered in relation to such Advance, Swingline Advance or
Letter of Credit.

 

10.2                           Interest Rate Determination

 

(a)                                  The Facility Agent shall promptly
notify each Borrower and the Banks participating in the relevant Facility
(other than a Swingline Facility) of each 

 

135

 

determination of the relevant interbank rate, the Applicable Margin and
the Mandatory Cost Rate.  The Facility
Agent shall, at the request of the relevant Borrower, deliver to such Borrower
a statement showing in reasonable detail how the relevant interbank rate in
relation to any Term or Interest Period in any Advance (other than a Swingline
Advance) was determined.

 

(b)                                 No later than the applicable date
and time specified in the Timetable, each Bank participating in the relevant
Swingline Advance shall notify Facility Agent of the quotation offered by
such Bank for deposits in such currency for such Term and the Facility Agent shall, no later
than the applicable date and time specified in the Timetable, promptly notify
each Borrower participating in such Swingline Advance and the Coordinator of
the Swingline Rate. The Facility Agent shall, at the request of the relevant
Borrower, deliver to such Borrower a statement showing in reasonable detail how
the relevant Swingline Rate in relation to any Term or Interest Period was
determined.

 

(c)                                  No later than the applicable date
and time specified in the Timetable, each Canadian Permitted Bank participating
in the relevant Canadian Swingline Advance shall notify the Facility Agent of
the quotation offered by such Bank for deposits in such currency for such
Term and the Facility
Agent shall, no later than the applicable date and time specified in the
Timetable, promptly notify each Borrower participating in such Canadian
Swingline Advance and the Coordinator of the Canadian Swingline Rate. The
Facility Agent shall, at the request of the relevant Borrower, deliver to such
Borrower a statement showing in reasonable detail how the relevant Canadian
Swingline Rate in relation to any Term or Interest Period was determined.

 

10.3                           Demands under Letters of Credit

 

If a demand is made under a Letter of Credit or an
L/C Issuer incurs in connection with a Letter of Credit any other liability,
cost, claim, loss or expense which is to be reimbursed pursuant to this
Agreement, the relevant L/C Issuer shall promptly notify the Facility Agent of
the amount of such demand or such liability, cost, claim, loss or expense and
the Letter of Credit to which it relates and the Facility Agent shall promptly
make demand upon the relevant C Borrower in accordance with this Agreement and
notify the Banks.

 

10.4                           Changes to Interest Rates

 

The Facility Agent shall promptly notify the
relevant Borrower and the Banks participating in the relevant Facility (or, in
the case of any A Facility, the relevant Tranche) of any change to any interest
rate occasioned by the operation of Clause 9 (Market
Disruption and Alternative Interest Rates).

 

10.5                           Netting of Advances

 

On any Utilisation Date, the Facility Agent shall
apply the proceeds of any Advance to be made on that date (a “New Advance”) in satisfaction of any amounts (which, for the
avoidance of doubt, shall include any amounts of principal, interest or
commitment commission payable pursuant to the terms of this Agreement) payable
by the Borrower to whom that New Advance is to be made on that Utilisation Date

 

136

 

which are in the same currency and relate to the
same Facility or Tranche as that New Advance.

 

11.                               REPAYMENT OF
ADVANCES

 

(a)                                  Subject to Clause 10.5 (Netting of Advances), each Borrower shall repay each Advance
(including any Swingline Advance) made to it in full prior to the close of
business (in the relevant country relating to the Designated Currency) on the
Repayment Date relating thereto.

 

(b)                                 All amounts outstanding under each
Facility shall be repaid on the Final Maturity Date.

 

(c)                                  Notwithstanding paragraph (a) above,
but subject to paragraph (b) above, each Australian Borrower shall
repay each Advance (including any Swingline Advance) made to it on the
Repayment Date but only to the extent that the Minimum Principal Loan Note
Amount is maintained as a result of such repayment and where a Rollover Advance
is used to refinance the Advance, the Loan Notes relating to such Advance shall
not be so redeemed and shall relate in all respects (including principal,
interest and maturity) to the Rollover Advance and to each Bank’s share
thereof.

 

(d)                                 Notwithstanding
paragraph (a) above, each Italian Borrower shall firstly repay any
outstanding amount of the Italian Non-Guaranteed Tranches, if any, then any
amount drawn by it under the A1 Euro Tranche and/or the A2 Euro Tranche, as the
case may be, it being understood that any payment made by an Italian Borrower
shall be applied firstly to the repayment of interest and then of principal.

 

12.                               C BORROWER’S
LIABILITIES IN RELATION TO LETTERS OF CREDIT

 

12.1                           C Borrower’s Indemnity to L/C
Issuers

 

The C Borrower on whose behalf a Letter of Credit
has been issued shall irrevocably and unconditionally as a primary obligation
indemnify (within three Business Days of demand of the Facility Agent) the L/C
Issuer which issued such Letter of Credit against:

 

(a)                                  any sum paid or due and payable by
such L/C Issuer under such Letter of Credit in accordance with the terms of
such Letter of Credit; and

 

(b)                                 all liabilities, costs, claims,
losses and expenses which such L/C Issuer may at any time properly incur or
sustain in connection with or arising out of any such Letter of Credit other
than those arising out of the relevant L/C Issuer’s gross negligence or wilful
misconduct.

 

137

 

12.2                           C Borrower’s Indemnity to Banks

 

The C Borrower on whose behalf a Letter of Credit
has been issued shall irrevocably and unconditionally as a primary obligation
indemnify (within three Business Days of demand of the Facility Agent) each
Bank against:

 

(a)                                  any sum paid or due and payable by
such Bank (whether under Clause 35.1 (Banks’ Indemnity)
or otherwise) in connection with such Letter of Credit; and

 

(b)                                 all liabilities, costs, claims,
losses and expenses which such Bank may at any time properly incur or sustain
in connection with any Letter of Credit other than those arising out of the
relevant L/C Issuer’s gross negligence or wilful misconduct.

 

12.3                           Preservation of Rights

 

Neither the obligations of any C Borrower set out in
this Clause 12 nor the rights, powers and remedies conferred on any L/C
Issuer or any Bank by this Agreement or by law shall be discharged, impaired or
otherwise affected by:

 

(a)                                  the winding-up, dissolution,
administration or re-organisation of the relevant L/C Issuer, any Bank or any
other person or any change in its status, function, control or ownership;

 

(b)                                 any of the obligations of the
relevant L/C Issuer, any Bank or any other person hereunder or under any Letter
of Credit or under any other security taken in respect of any C Borrower’s
obligations hereunder or otherwise in connection with a Letter of Credit being
or becoming illegal, invalid, unenforceable or ineffective in any respect;

 

(c)                                  any time or other indulgence being
granted or agreed to be granted to the relevant L/C Issuer, any Bank or any
other person in respect of its obligations hereunder or under or in connection
with a Letter of Credit or under any such other security;

 

(d)                                 any amendment to, or any variation,
waiver or release of, any obligation of such L/C Issuer, any Bank or any other
person under a Letter of Credit or this Agreement;

 

(e)                                  any other act, event or omission
(other than gross negligence or wilful misconduct) which, but for this
Clause 12, might operate to discharge, impair or otherwise affect any of
the obligations of a C Borrower set out in this Clause 12 or any of the
rights, powers or remedies conferred upon such L/C Issuer or any Bank by
this Agreement or by law.

 

The obligations of each C Borrower set out in this
Clause 12 shall be in addition to and independent of every other security
which any L/C Issuer or such Bank may at any time hold in respect of such C
Borrower’s obligations hereunder.

 

138

 

12.4                           Settlement Conditional

 

Any settlement or discharge between a C Borrower and
an L/C Issuer or a Bank shall be conditional upon no security or payment to
such L/C Issuer or such Bank by such C Borrower, or any other person on behalf
of such C Borrower, being avoided or reduced by virtue of any laws relating to
bankruptcy, insolvency, liquidation or similar laws of general application and,
if any such security or payment is so avoided or reduced, such L/C Issuer or
such Bank shall be entitled to recover the value or amount of such security or
payment from such C Borrower subsequently as if such settlement or discharge
had not occurred.

 

12.5                           Right to make Payments under Letters
of Credit

 

The relevant L/C Issuer shall be entitled to make
any payment in accordance with the terms of the relevant Letter of Credit
without any reference to or further authority from the relevant C Borrower or
any other investigation or enquiry.  Each
C Borrower irrevocably authorises each L/C Issuer to comply with any demand
under a Letter of Credit which is valid on its face.

 

12.6                           Advances to meet Demands in respect
of Letters of Credit

 

If a demand for payment is made under a Letter of
Credit the relevant C Borrower shall, unless it has given at least three
Business Days’ notice to the contrary to the Facility Agent, be deemed to have
issued a Utilisation Notice (to the extent that such C Borrower would otherwise
be permitted to request a Rollover Advance under this Agreement) for a Rollover
Advance maturing at the next Settlement Date and in an amount equal to that to
be paid by such C Borrower to the L/C Issuer pursuant to Clause 12.1(a) (C Borrower’s Indemnity to L/C Issuers) and save as otherwise
provided herein, each Bank will participate through its Facility Office in each
such Rollover Advance made pursuant to this Clause 12.6 (Advances to meet Demands in respect of Letters of Credit) in
the proportion borne by its Available Commitment to the Available Facility in
relation to the C Facility immediately prior to the making of that Rollover
Advance and the Facility Agent shall pay the proceeds of each Rollover Advance
to the relevant L/C Issuer.

 

13.                               CANCELLATION AND
PREPAYMENT

 

13.1                           Voluntary Cancellation

 

(a)                                  The Parent may, by giving to the
Facility Agent prior notice on a Reporting Date to that effect, cancel the
whole or any part (being in a minimum amount of €5,000,000 (or the Designated
Currency Equivalent thereof) and an integral multiple of €1,000,000 (or the
Designated Currency Equivalent thereof)) on the Settlement Date relating to
such Reporting Date) of any Available Facility. 
Any such cancellation shall reduce permanently the Commitment of each
Bank in relation to such Facility or Tranche (as the case may be) rateably save
that prior to the date that is 12 months after the Closing Date the maximum
aggregate amount of the Available Facility in relation to:

 

(i)                                     the A1 Facility that may be so
cancelled shall be limited to an aggregate Euro Amount of €200,000,000; and

 

139

 

(ii)                                  the A2 Facility that may be so
cancelled shall be limited to an aggregate Euro Amount of €30,000,000,

 

and provided always
that no amount of the A2 Facility may be cancelled until the A1 Facility
has been fully repaid and all the A1 Commitments of the relevant Banks reduced
to zero, save  that:

 

(A)                              the
Available Commitments under the A1 Canadian Dollar Tranche and the A2 Canadian
Dollar Tranche may both be cancelled in whole (and not in part) if at the time
of such cancellation any amounts outstanding under both of the A1 Canadian
Dollar Tranche and the A2 Canadian Dollar Tranches are also repaid in full in
accordance with Clause 13.3(c) (Mandatory Reduction of the
Facilities); and/or

 

(B)                                the
Available Commitments in an amount equal to the A1 Belgian Euro Amount under
the A1 Euro Tranche and the A2 Belgian Euro Amount under the A2 Euro Tranche may
both be cancelled in whole (and not in part) if at the time of such
cancellation any of the A1 Belgian Euro Amount and the A2 Belgian Euro Amounts
which are outstanding under the A1 Euro Tranche and the A2 Euro Tranches,
respectively, are also repaid in full in accordance with Clause 13.3(c) (Mandatory Reduction of the Facilities).

 

(b)                                 Notwithstanding
paragraph (a) above and in respect of Italian Borrowers only, no
amount of the A1 Euro Tranche and/or of the A2 Euro Tranche may be cancelled
until the Italian Non-Guaranteed Tranches have been fully repaid.

 

13.2                           Automatic Cancellation

 

(a)                                  If a Mandatory Cancellation Event
occurs, the Commitments shall be immediately cancelled and reduced to zero.

 

(b)                                 At the end of the Availability
Period any undrawn Commitment under each Facility shall be cancelled and no
further amount shall be capable of being drawn under any Facility.

 

13.3                           Mandatory Reduction of the
Facilities

 

The Parent shall (and shall procure that each
relevant Borrower shall) apply an amount equal to:

 

(a)                                  one hundred per cent. (100 per
cent.) of any Net Cash Proceeds less any Reinvested Amount in respect of any
disposal, lease or transfer of any asset of any Borrower (or in the case of a
Borrower that is a Financeco, its Related Opco) which constitutes a Permitted
Disposal of the nature described in paragraph (e) of the definition
of “Permitted Disposals”
(excluding, for the avoidance of doubt, any Net Cash Proceeds from the sale of
the shares or other stock of an Excluded Canadian Company or of the assets of
any Excluded Canadian Company);

 

140

 

(b)                                 one hundred per cent. (100 per
cent.) of the Net Cash Proceeds (provided that such Net Cash Proceeds are in
any financial year in aggregate in excess of €10,000,000 received as a result
of making a claim under an insurance policy for damage to or destruction of any
property or asset of any Borrower (or in the case of a Borrower that is a
Financeco, its Related Opco) or in respect of any condemnation or casualty
event (other than in relation to any third party liability), save (i) if
such Net Cash Proceeds relate to a claim in respect of assets that are part of
the relevant Borrower’s A1 Borrowing Base, A2 Borrowing Base or C
Borrowing Base (as the case may be), and (ii) to the extent of any amount
that has been or will be applied to repair or to purchase or lease a
replacement for such asset or property or otherwise to remedy the cause of such
claim, or which is otherwise reinvested in the business of the relevant
Borrower or its Related Opco (if applicable), within 12 months (or, if
longer, the period required by the Parent or the relevant Borrower or its
Related Opco (if applicable) to so apply such proceeds provided that such
longer period has been approved by the Facility Agent (acting reasonably)) of
receipt of such proceeds; and

 

(c)                                  one hundred per cent. (100 per
cent.) of the Net Cash Proceeds of any (x) Take-Out Financing or (y) Belgian/Canadian
Take-Out Financing.

 

immediately upon receipt by the relevant Borrower or
its Related Opco (if applicable) of the proceeds of any Take-Out Financing and
as soon as reasonably practicable and in any case within one month of receipt
by the relevant Borrower or its Related Opco (if applicable) in the case of all
other amounts to which this Clause 13.3 applies, in repayment of the
Facilities (and, in relation to any mandatory prepayment as a result of the
operation of paragraph (c) above, in the reduction and pro tanto
cancellation of the Facilities) in each case in accordance with
Clause 13.7 (Application of Amounts Prepaid)
and Clause 13.8 (Prepayment Accounts).

 

13.4                           Change of Control, Sale and Change
of Ownership

 

(a)                                  If a Change of Control or Sale
occurs:

 

(i)                                     all of the Banks’ Commitments will
immediately be cancelled and reduced to zero; and

 

(ii)                                  each Borrower will immediately
prepay all Advances drawn by it and all sums advanced to it hereunder in
accordance with Clause 13.7 (Application of Amounts
Prepaid).

 

(b)                                 If any Obligor (other than an Orphan
Financeco, an Orphan SPV, a partially financed Financeco or a partially owned
SPV) ceases to be a wholly-owned direct or indirect subsidiary of the Parent
(save for de minimis nominal shareholdings by the Target) or any Obligor that
is an Orphan Financeco or an Orphan SPV ceases to be an Orphan Financeco or an
Orphan SPV, such Obligor (together with its Related Opco, related Financeco and
related SPV) shall immediately prepay all Advances drawn by it and all sums
advanced to it hereunder and in the reduction and pro tanto cancellation of the
Facilities, in each case in accordance with Clause 13.7 (Application of Amounts Prepaid).

 

141

 

13.5                           Mandatory Prepayment on breach of
Borrowing Base

 

If in relation to a particular Borrower and a
particular Facility on any Calculation Date, the A1 Outstandings, the A2
Outstandings or the C Outstandings of such Borrower exceeds such Borrower’s A1
Borrowing Base, A2 Borrowing Base or C Borrowing Base (as the case may
be), the Parent shall procure that no later than the immediately succeeding
Settlement Date, (a) an amount equal to the amount of such excess is
applied by the relevant Borrower in prepayment of the relevant Outstandings in
the relevant Designated Currency and (b) in the case of the C Facility and
any outstanding Letters of Credit, Cash Collateral is provided in an amount
equal to the amount of the relevant L/C Issuer’s maximum actual and contingent
liabilities under such Letter of Credit .

 

13.6                           Limitations on Obligations

 

(a)                                  The mandatory prepayments pursuant
to paragraphs (a), (b) and (c) of Clause 13.3 (Mandatory Reduction of the Facilities), Clause 13.5 (Mandatory Prepayment on breach of Borrowing Base) and
paragraph (e) of this Clause 13.6 shall be limited to the sum
of:

 

(i)                                     cash and Cash Equivalents held by
the relevant entity (which, in the case of paragraphs (a), (b) and (c) of
Clause 13.3 (Mandatory Reduction of the Facilities)
shall be the entity that received the relevant Net Cash Proceeds) (the “Relevant Obligor”);

 

(ii)                                  distributable profits net of taxes
for the current financial year of the subsidiaries of such Relevant Obligor
which are distributable (taking into account the Relevant Obligor’s
shareholding in such subsidiaries and provided, in relation to any Relevant
Obligor, that in the circumstances where the Relevant Obligor does not have,
directly or indirectly, the power or ability to decide to pay any dividend or
make any distribution of profit of such subsidiaries without the prior approval
of the other shareholders, members or partners, as the case may be, in such
subsidiaries, such Relevant Obligor has used all reasonable endeavours to
procure such prior approval);

 

(iii)                               distributable reserves in respect of
a subsidiary of a Relevant Obligor domiciled in France (en franchis
de prélévement exceptionnel sur les distributions de bénéfices
(article 95 of the Loi de Finances
for 2004)) or, in respect of a subsidiary domiciled other than in France, to
the extent that distributable reserves of such subsidiary domiciled other than
in France can be distributed without any material tax cost for non-French
subsidiaries of the Relevant Obligor which are distributable (taking into
account the Relevant Obligor’s shareholding in such subsidiaries and provided,
in relation to any Relevant Obligor, that in the circumstances where the
Relevant Obligor does not have, directly or indirectly, the power or ability to
decide to pay any dividend or make any distribution of reserves of such
subsidiaries without the prior approval of the other shareholders, members or
partners, as the case may be, in such subsidiaries, such Relevant Obligor has
used all reasonable endeavours to procure such prior approval);

 

142

 

(iv)                              any intercompany loan which can be
lawfully granted by any member of the Group or other Obligor to the Relevant
Obligor(s) provided that such member of the Group or other Obligor holds
cash and/or Cash Equivalents in order to make such intercompany loans; and

 

(v)                                 any other debt owed by any member of
the Group or other Obligor to the Relevant Obligor(s) (either due and
payable or, if not, provided that such member of the Group or other Obligor
holds cash and/or Cash Equivalents sufficient to repay such debt), including,
if any, any tax payment due and payable by any member of the Group or other
Obligor to the Relevant Obligor(s) in connection with the tax
consolidation of the Group (net of provisions for taxes),

 

in each case to be determined upon the date upon
which the relevant prepayment obligation arose (or, if relevant, the date upon
which the proceeds are received by the Relevant Obligor) and in each case net
of taxes imposed in connection with such prepayment.

 

(b)                                 For the avoidance of doubt, the
Banks’ right to a prepayment pursuant to paragraphs (a), (b) and (c) of
Clause 13.3 (Mandatory Reduction of the Facilities)
in relation to Net Cash Proceeds received by subsidiaries not fully owned by
the Relevant Obligor, shall be limited to the percentage of the share capital
of such subsidiaries or percentage of the relevant interest, as the case may
be, held in any partnership or other entity directly or indirectly held by the
Relevant Obligor.

 

(c)                                  Further, such prepayments shall be
limited to the extent that such Net Cash Proceeds cannot be obtained from the
Relevant Obligor without such Relevant Obligor or any of its subsidiaries
(whether direct or indirect) being in breach of any law (including any law
relating to the timing of distributions), regulation or binding ruling from a
competent authority or without the directors of such Relevant Obligor incurring
personal liability or breaching their fiduciary duties to such Relevant Obligor
or without the Relevant Obligor being placed into a position where it has
insufficient funds available to it to be able to continue to trade for the
purposes of any relevant insolvency law (taking into account funds available to
such Relevant Obligor from any other member of the Group or other Obligor); provided that in each such case the Parent shall deliver to
the Banks a certificate in form and substance reasonably satisfactory to the
Facility Agent setting forth the circumstances of such breach of law,
regulation, binding ruling or fiduciary duty or such risk of personal liability
or insolvency circumstance.

 

(d)                                 Where any such prohibition or risk
of personal liability or breach of fiduciary duty exists, the Relevant Obligor
shall procure that each of its subsidiaries shall use all reasonable endeavours
lawfully to overcome the prohibition or risk.

 

(e)                                  To the extent that any Relevant
Obligor’s obligation to make a mandatory prepayment under Clause 13.3 (Mandatory Reduction of the Facilities) is limited by the
provisions of this Clause 13.6 (Limitations on Obligations),
the balance of such Relevant Obligor’s pro rata portion of such mandatory

 

143

 

prepayment shall be paid by other Obligors to the extent permitted
hereunder to be applied in accordance with Clause 13.7 (Application of Amounts Prepaid) and to the extent permitted
by applicable law and this Clause 13.6. 
Any prepayment obligation by any Relevant Obligor which is limited by
the provisions of this Clause 13.6 (Limitations on Obligations),
and which cannot be allocated to prepayment by other Obligors as previously
provided, shall be on-going and shall be reinstated at the time and to the extent
that the events or circumstances giving rise to such limitation shall cease to
exist.

 

13.7                         Application of Amounts Prepaid

 

(a)                                  Any amount to be applied in
reduction of the Facilities pursuant to Clause 13.3 (Mandatory
Reduction of the Facilities) shall be applied in repayment of the
Facility (or, in the case of any A Facility, the relevant Tranche or Belgian
Euro Amount, as the case may be) in relation to which the relevant Borrower (or
the relevant Related Opco, as the case may be) is a Borrower and if such
Borrower has borrowed under more than one Facility or Tranche (as the case may
be), pro rata against each such Facility, Tranche or Belgian Euro Amount (as
the case may be) provided that other than as
permitted in sub-paragraph (A) and (B) of Clause 13.1(a) (Voluntary Cancellation) no such amount shall be applied in
the reduction and cancellation of the A2 Facility unless all of that Borrower’s
A1 Outstandings have been fully repaid.

 

(b)                                 Upon any prepayment of any Facility
(or, in the case of any A Facility, any Tranche) pursuant to paragraph (a) above
as a result of a receipt of Net Cash Proceeds of any Take-Out Financing or
Belgian/Canadian Take-Out Financing or pursuant to Clause 13.4(b) (Change of Control, Sale and Change of Ownership), (i) the
aggregate Commitments of the Banks under such Facility or Tranche (as the case
may be) shall be cancelled in an aggregate amount equal to the amount in the
relevant Designated Currency of such prepayment, (ii) the Commitments of
each Bank under such Facility or Tranche 
(as the case may be) shall be cancelled in an amount in the relevant
Base Currency equal to its Proportion of such prepayment and (iii) to the
extent that any Take-Out Financing or Belgian/Canadian Take-Out Financing (or
related series of Take-Out Financings or Belgian/Canadian Take-Out Financings)
shall relate to more than one Borrower, the Facility Agent shall apply the
aforementioned prepayments against such Borrowers’ (and their respective
Related Opco’s) Outstandings in such proportion and in such manner (as among
such Borrowers (and their respective Related Opco’s) and as between each such
Borrower’s (and its respective Related Opco’s) A1 Outstandings, A2
Outstandings and, to the extent applicable, C Outstandings) as the
Facility Agent shall determine (acting reasonably) taking into account the
limitations referred to in Clause 13.6 (Limitations
on Obligations), provided that to the extent that any
prepayment is made of the (x) Belgian Euro Amount, such prepayment shall
be applied to the Belgian Euro Amount only and (y) A1 Canadian Dollar
Tranche and the A2 Canadian Dollar Tranche, such prepayment shall be applied pro rata to each such tranche only,.

 

144

 

13.8                         Prepayment Accounts

 

(a)                                  If the provisions of
Clause 13.3 (Mandatory Reduction of the Facilities)
would require a Borrower to prepay any amount of an Advance otherwise than on
the last day of its Term, such Borrower may elect (by written notice to the
Facility Agent) to credit the amount to be repaid to a Prepayment Account on
the date on which the prepayment obligation would, but for this
Clause 13.8 (Prepayment Accounts), arise.

 

(b)                                 If such Borrower elects to make any
payments into a Prepayment Account then such amounts shall, as appropriate and
to the extent required by Clause 13.3 (Mandatory Reduction of the
Facilities) be applied in prepayment of the applicable Outstandings,
upon maturity of the next maturing Advance(s).

 

(c)                                  Each Borrower hereby authorises the
Facility Agent to withdraw monies from the Prepayment Account and apply such
monies against prepayments and other amounts which are due under this
Clause 12 or, upon the occurrence of an Event of Default that is
continuing and has been notified to the Facility Agent by the Parent or a
Borrower, against any amount due and payable under the Finance Documents.

 

13.9                         Cancellation of Letters of Credit

 

Each C Borrower may give the Facility Agent
not less than one Business Day’s prior notice of its intention to procure that
any L/C Issuer’s liability under any Letter of Credit is reduced to zero
(whereupon it shall do so) provided such C Borrower has provided evidence in
form and substance reasonably satisfactory to the L/C Issuer that the
beneficiary under such Letter of Credit has consented to the cancellation of
such Letter of Credit.

 

13.10                   Notice of Cancellation or Prepayment

 

Any notice of cancellation and/or prepayment given
by a Borrower pursuant to this Clause 13 shall be irrevocable, shall
specify the date upon which such cancellation or prepayment is to be made and
the amount of such cancellation or prepayment.

 

13.11                   Notice of Removal of a Bank or L/C
Issuer

 

If:

 

(a)                                  any sum payable to any Bank or L/C
Issuer by an Obligor is required to be increased pursuant to Clause 14.1 (Tax Gross-up); or

 

(b)                                 any Bank or L/C Issuer claims
indemnification from a Borrower under Clause 14.2 (Tax
Indemnity) or Clause 16.1 (Increased Costs),

 

the Parent may, whilst such circumstance continues,
give the Facility Agent at least ten Business Days notice (which notice shall
be irrevocable) of its intention (a) if such circumstance relates to a
Bank to cancel, repay and/or provide Cash Collateral in respect of the
Commitment of such Bank or (b) if such circumstance relates to an 

 

145

 

L/C Issuer, to procure the cancellation of or
provide Cash Collateral in respect of such L/C Issuer’s outstanding Letters of
Credit.

 

13.12                   Removal of a Bank or L/C Issuer

 

On the day the notice referred to in Clause 13.11
(Notice of Removal of a Bank or L/C Issuer)
expires:

 

(a)                                  (if such circumstance relates to a
Bank) the relevant C Borrower shall repay such Bank’s portion of each relevant
Advance and the relevant C Borrower shall procure either that such Bank’s L/C
Proportion of each relevant Letter of Credit be reduced to zero (by reduction
of the amount of such Letter of Credit in an amount equal to such Bank’s L/C
Proportion) or that Cash Collateral be provided in an amount equal to such Bank’s
L/C Proportion of such Letter of Credit; and

 

(b)                                 (if such circumstance relates to an
L/C Issuer) the relevant C Borrower shall procure that the relevant L/C Issuer’s
liability under any Letter of Credit issued by it shall be either reduced to
zero or otherwise secured by the relevant C Borrower providing Cash Collateral
in an amount equal to the amount of such L/C Issuer’s maximum actual and
contingent liabilities under such Letter of Credit.

 

13.13                   No Further Availability

 

A Bank for whose account a repayment is to be made
under Clause 13.12 (Removal of a Bank or L/C
Issuer) shall not be obliged to participate in the making of
Advances or any Letter of Credit on or after the date upon which the Facility
Agent receives the relevant C Borrower’s notice of its intention to procure the
repayment of such Bank’s share of the Outstandings, and such Bank’s Commitment
shall be reduced to zero.

 

13.14                   No Other Repayments or Cancellation

 

The Borrowers shall not repay or cancel all or any
part of the Outstandings except at the times and in the manner expressly
provided for in this Agreement.

 

13.15                   Replacement of L/C Issuer

 

The Parent may, on giving not less than ten (10) Business
Days notice to the Facility Agent, request the appointment of another Bank to
act as L/C Issuer on the terms and conditions set out herein.

 

13.16                   Prepayment of Advances by Australian
Borrower

 

The provisions of paragraph (a) of
Clause 11 (Repayment of Advances) apply with
all changes necessary to effect, and resulting from, prepayments under the
relevant Facility by an Australian Borrower under this Clause 12.

 

146

 

14.                               TAXES

 

14.1                         Tax Gross-up

 

(a)                                  Save to the extent required under
any applicable law, all payments to be made by an Obligor to any Finance Party hereunder
or under the Finance Documents shall be made free and clear of and without
deduction or withholding for or on account of tax.  Except as provided by Clause 14.6 (US Filings), if any Obligor is required to deduct or
withhold any Relevant Tax, or an amount for or on account of any Relevant Tax
from any payment made hereunder or under the Finance Documents to any Finance
Party the sum payable by such Obligor (in respect of which such deduction or
withholding is required to be made) shall be increased to the extent necessary
to ensure that such Finance Party receives a sum net of any deduction or
withholding (including deductions or withholdings applicable to any additional
amounts paid under this Clause 14.1) equal to the sum which it would have
received had no such deduction or withholding been made or required to be made
provided that this Clause 14.1 (Tax Gross-up)
shall not apply to the extent (i) that such deduction or withholding would
not have arisen if the relevant Finance Party had complied with its obligations
under, or (ii) as otherwise set out in, in each case, Clause 14.3 (Banks’ Tax Status) or Clause 14.5 (Double
Taxation Relief) as the case may be.

 

(b)                                 This Clause 14.1 shall not
apply to any amounts that the Australian Borrower or any Australian Obligor is
obliged to deduct as a result or by reason of a Bank’s or Finance Party’s
failure to comply with its obligations in Subdivision 12-E of Schedule 1
to the Australian Taxation Administration Act of 1953.

 

14.2                         Tax Indemnity

 

Without prejudice to Clause 14.1 (Tax Gross-ups) and except as provided by Clause 14.6 (US Filings), if, by reason of any change after the Closing
Date in law or in its interpretation or administration (including, without
limitation, the introduction of legislation, any change in judicial
interpretation, any change in an applicable Double Taxation Treaty or any
change in the published practice of a relevant tax authority), any Finance
Party is required to make any payment of or on account of a Relevant Tax on or
in relation to any sum received or receivable hereunder or under the Finance
Documents or if any liability in respect of any such payment is asserted,
imposed, levied or assessed against any Finance Party, the Parent shall, upon
demand of the Facility Agent, promptly indemnify or cause to be indemnified the
Finance Party which suffers a loss or liability as a result against such
payment or liability, together with any interest, penalties, costs and expenses
payable or incurred in connection therewith provided that:

 

(a)                                  this Clause 14.2 (Tax Indemnity) shall not apply in respect of any Relevant
Tax, interest, penalties, costs or expenses of a Finance Party which would not
have arisen or been incurred but for the reasonably avoidable delay or the
default of such Finance Party;

 

147

 

(b)                                 this Clause 14.2 (Tax Indemnity) shall not apply to the extent that such
Relevant Tax, interest, penalties, costs or expenses:

 

(i)                                     would not have arisen if the
relevant Finance Party was and continued to be a Qualifying Bank and had
complied with its obligations under Clause 14.3 (Banks’ Tax
Status) save, in each case, where such Relevant Tax, interest,
penalties, costs or expenses arise as a result of any change after the Closing
Date in law or in its interpretation or administration (including, without
limitation, the introduction of legislation, any change in judicial
interpretation, any change in an applicable Double Taxation Treaty or any
change in the published practice of a relevant tax authority);

 

(ii)                                  would not have arisen if the
relevant Finance Party had complied with its obligations under Clause 14.5
(Double Taxation Relief); or

 

(iii)                               is compensated for by an increased
payment under Clause 14.1 (Tax Gross-up),
or it would have been had the provisions of Clause 14.3 (Banks’ Tax Status) not applied.

 

14.3                         Banks’ Tax Status

 

(a)                                  Each Bank and each Fee Recipient
certifies to the Facility Agent and the Parent (on the Closing Date or, in the
case of a Bank or Fee Recipient which becomes a party hereto pursuant to a
transfer or assignment, on the date on which the relevant transfer or
assignment becomes effective) that it is a Qualifying Bank and each Bank and
each Fee Recipient shall promptly notify the Facility Agent if there is any
change in its position from that set out above. 
Upon receipt of any such notification from a Bank or Fee Recipient the
Facility Agent shall promptly notify the Parent thereof.

 

(b)                                 Subject to Clause 14.3(e) (Banks’ Tax Status), if any Bank or Fee Recipient is not or
ceases to be a Qualifying Bank or does not comply with or perform the
formalities required to be a Qualifying Bank (including without limitation
completing and submitting any form or other document required for the purpose
of ensuring the application of a Double Taxation Treaty or applicable tax laws
or regulations) (except, in each case, by reason of any change after the date
the Bank or Fee Recipient becomes a party to this Agreement in law or in its
interpretation or administration including, without limitation, the
introduction of legislation, any change in judicial interpretation, any change
in an applicable double tax treaty or any change in the published practice of a
relevant tax authority) the Obligor shall not be liable pursuant to this
Clause 14 to pay with respect to the Bank or Fee Recipient any amount
greater than the amount which the Obligor would have been liable to pay
pursuant to this Clause 14 with respect to that Bank or Fee Recipient if
that Bank or Fee Recipient had been, or had not ceased to be on that date, a
Qualifying Bank and had complied with or had performed the formalities required
to be a Qualifying Bank (including without limitation completing and submitting
any form or other document required for the purpose of ensuring the application
of a Double Taxation Treaty or applicable tax laws or regulations).

 

148

 

(c)                                  If at the date a Guarantor makes a
payment hereunder or under the Finance Documents on behalf of a Borrower any
deduction or withholding for or on account of tax imposed in respect of such
payment would have been excluded from the gross-up at Clause 14.1 (Tax Gross-up) or the indemnity at Clause 14.2 (Tax Indemnity) under this Agreement if such payment were
made by such Borrower, then, to that extent, the applicable gross-up under
Clause 14.1 (Tax Gross-up) or the indemnity at
Clause 14.2 (Tax Indemnity) in respect of such
payment by such Guarantor shall exclude so much of the amount (or, if
applicable, the currency equivalent amount) of deduction or withholding for or
on account of tax that would have been excluded had the payment been made by
such Borrower.

 

(d)                                 A Swiss Obligor shall not be
required to make any increased payments under Clause 14.1 (Tax Gross-up) for a tax deduction, and the Parent shall not
be obliged to make any payments or cause any payments to be made under
Clause 14.2 (Tax Indemnity), in each case,
which is due to the fact that there are more than ten Banks which are not
Qualifying Banks in relation to such Swiss Obligor under this Agreement. For
the avoidance of doubt, it is the Banks’ sole responsibility to make sure that
there are not more than ten Banks (including any sub-participants) at any time
which are not Qualifying Banks in relation to any Swiss Obligor under this
Agreement.

 

(e)                                  No Swiss Obligor shall be indebted
at any time to more than 20 lenders (including the Banks under this Agreement),
which are not Qualifying Banks.

 

14.4                         Claims by Banks

 

A Bank intending to make a claim pursuant to
Clause 14.2 (Tax Indemnity) shall notify the
Facility Agent of the event giving rise to the claim, whereupon the Facility
Agent shall notify the Parent thereof.

 

14.5                         Double Taxation Relief

 

If, and to the extent that, the effect of
Clause 14.1 (Tax Gross-up) or Clause 14.2
(Tax Indemnity) can be mitigated by
virtue of the provisions of any applicable Double Taxation Treaty or any
applicable tax law (whether by a claim to repayment of any taxes referred to in
Clause 14.1 (Tax Gross-up) or Clause 14.2
(Tax Indemnity) or otherwise) the
relevant Finance Party agrees, provided that, and for so long as, no Event of
Default has occurred and is continuing, to co-operate with the Parent with a
view to completing and submitting any forms required for the purpose of
ensuring the application of such Double Taxation Treaty or applicable tax law
so far as relevant, provided that no Finance Party shall be required pursuant
to this Clause 14.5 to complete or co-operate in completing any form
unless the Parent or the relevant Borrower reasonably requests it to do so.

 

14.6                         US Filings

 

(a)                                  Each Finance Party that is a United
States person (as such term is defined in Section 7701(a)(30) of the
Internal Revenue Code) shall, on or prior to the date of the execution and delivery
of this Agreement in the case of an original Finance Party and on the date of
the relevant Transfer Certificate pursuant to 

 

149

 

which it becomes a Finance Party in the case of any other Finance Party,
and from time to time thereafter as reasonably requested in writing by the
Facility Agent (but only so long as such Finance Party remains lawfully able to
do so), provide the Facility Agent with two properly completed and duly
executed Internal Revenue Service Forms W-9 or any successor or other form
prescribed by the Internal Revenue Service, certifying that such Finance Party
is not subject to United States backup withholding tax on payments made
pursuant to this Agreement or any other Finance Document by a US Obligor.

 

(b)                                 Each Finance Party that is not a
United States person (as such term is defined in Section 7701(a)(30) of
the Internal Revenue Code) shall, on or prior to the date of the execution and
delivery of this Agreement in the case of an original Finance Party and on the
date of the relevant Transfer Certificate pursuant to which it becomes a
Finance Party in the case of any other Finance Party, and from time to time
thereafter as reasonably requested in writing by the Facility Agent (but only
so long as such Finance Party remains lawfully able to do so):

 

(i)                                     provide the Facility Agent with two
properly completed and duly executed Internal Revenue Service Forms W-8BEN or
W-8ECI, as appropriate, or any successor or other form prescribed by the Internal
Revenue Service, certifying that such Finance Party is exempt from or entitled
to a reduced rate of United States federal withholding tax on payments made
pursuant to this Agreement or any other Finance Document by a US Obligor under
an applicable double taxation agreement, together with such other form or
forms, or any documentation or certification as may be necessary from time to
time after the Closing Date to establish the exemption or reduced rate; or

 

(ii)                                  in the case of a Finance Party claiming
the benefits of the exemption from United States federal withholding tax for
portfolio interest under Section 881(c) of the Internal Revenue Code,
provide (x) a certificate to the Facility Agent to the effect that and
pursuant to which the Finance Party represents that such Finance Party is not (i) a
bank (as such term is used in Section 881(c)(3)(A) of the Internal
Revenue Code), (ii) a 10-percent shareholder of the relevant Obligor
(within the meaning of Section 881(c)(3)(B) of the Internal Revenue
Code), or (iii) a controlled foreign corporation related to the relevant
Obligor (as such term is described in Section 881(c)(3)(C) of the
Internal Revenue Code), and (y) two properly completed and duly executed
Internal Revenue Service Forms W-8BEN or any successor or other forms
prescribed by the Internal Revenue Service certifying the non-United States
person status of such Finance Party and such Finance Party’s legal entitlement
at the date of such certification to an exemption from United States federal withholding
tax with respect to payments made pursuant to this Agreement or under any other
Finance Document by a US Obligor, together with such other form or forms,
documentation or certifications as may be necessary from time to time to
establish this exemption; or

 

(iii)                               in the case of any Finance Party
that is a foreign intermediary or foreign flow-through entity for United States
federal income tax 

 

150

 

purposes, provide the Facility Agent with respect to such Finance
Party, two properly completed and duly executed Internal Revenue Service Forms
W-8IMY or any successor or other forms prescribed by the Internal Revenue
Service and the statement, certificate or other documentary evidence required
to be provided by such Finance Party and, in the case of a nonqualified
intermediary that is a Finance Party or a non-withholding Finance Party that is
a foreign flow-through entity, with respect to each beneficiary or member of
such Finance Party, two forms and/or certificates described in paragraph (i) or
(ii) of this Clause 14.6(a), as applicable, together with such other
form or forms, documentation, statements, certificates or certifications as may
be necessary from time to time to establish the exemption from or, in the case
of paragraph (i) only, the reduced rate of, withholding.

 

(c)                                  If a Finance Party fails to provide
the Facility Agent with the appropriate Internal Revenue Service form or, if
applicable, the certificate or certification, each as described above and each
being properly completed and duly executed (other than if such failure is due
to a change in law, or in the interpretation or application thereof, occurring
after the date on which a form or certificate originally was required to be
provided or if such form, certificate or other document otherwise is not
required under Clauses 14.6(a) or (b))(US Filings),
United States federal withholding tax and United States backup withholding tax,
in each case imposed on any amount paid by the relevant Obligor under this
Agreement or any other Finance Document, shall be considered excluded from the
gross-up at Clause 14.1 (Tax Gross-up)
or the indemnity at Clause 14.2 (Tax Indemnity)
under this Agreement by reason of such failure unless and until the Finance
Party provides the appropriate Internal Revenue Service form or certificate
that is properly completed and duly executed and establishing a complete
exemption from United States backup withholding tax or a complete exemption
from, or a reduction of, United States federal withholding tax on any amount
paid by the US Obligor under this Agreement or the other Finance Document,
whereupon United States federal withholding tax at such reduced rate only (to
the extent a complete exemption is not available to such Finance Party) shall
be considered excluded from such gross-up or indemnity for periods governed by
such form and certificate.  If any
Internal Revenue Service form provided by a Finance Party pursuant to this
Clause 14.6 (US Filings) at the time such Finance
Party first becomes a Finance Party hereunder or when it first provides such
form indicates a United States federal withholding tax rate in excess of zero
in respect of any amount paid by the US Obligor under this Agreement or the
other Finance Documents, United States federal withholding tax at such rate
shall be considered excluded from the gross-up at Clause 14.1 (Tax Gross-up) or the indemnity at Clause 14.2 (Tax Indemnity) under this Agreement or the other Finance
Documents unless and until the Finance Party provides the appropriate form
certifying that a lesser rate applies, whereupon federal withholding tax at the
lesser rate only shall be considered excluded from the gross-up or indemnity
for periods governed by such form; provided, however, that if at the date a
Finance Party transferee under a Transfer Certificate becomes a party to this
Agreement, the Finance Party transferor was entitled to payments under
Clauses 14.1 (Tax Gross-up)
or 14.2 (Tax Indemnity) in respect of United 

 

151

 

States federal withholding tax in connection with any amount paid at
such date, then, to that extent, the applicable gross-up under Clause 14.1
(Tax Gross-up) or indemnity under
Clause 14.2 (Tax Indemnity) shall include (in
addition to withholding taxes that may be imposed in the future or other
amounts otherwise included therein) an amount of United States federal
withholding tax equal to that applicable with respect to the Finance Party
transferor on such date.  If any form,
certificate or document referred to in this Clause 14.6 (US Filings) requires the disclosure of information, other
than information necessary to compute the Relevant Tax payable and such
information as is required on the Closing Date by the Internal Revenue Service
Forms W-9, W-8BEN, W-8ECI or W-8IMY (as applicable) or the related certificate
described above, or other information relating to a Finance Party’s
nationality, identity or residence, that a Finance Party reasonably considers
to be confidential, the Finance Party shall not be obligated to include in such
form, certificate or document such confidential information.

 

14.7                         VAT

 

(a)                                  Except where otherwise expressly
provided, and without duplication, all amounts set out in, or expressed to be payable
under, a Finance Document by any person to a Finance Party which (in whole or
in part) constitute the consideration for VAT purposes shall be deemed to be
exclusive of any VAT which is chargeable on such supply, and accordingly, if
VAT is chargeable on any supply made by any Finance Party to any person under a
Finance Document, that person shall pay to the Finance Party (in addition to
and at the same time as paying the consideration) an amount equal to the amount
of the VAT (and such Finance Party shall promptly provide an appropriate VAT
invoice to such person).

 

(b)                                 If VAT is chargeable on any supply
made by any Finance Party (the “Supplier”)
to any other Finance Party (the “Recipient”)
under a Finance Document, and any person (the “Relevant Party”) is required by the terms of any Finance
Document to pay an amount equal to the consideration for such supply to the
Supplier (rather than being required to reimburse the Recipient in respect of
that consideration), such person shall also pay to the Supplier (in addition to
and at the same time as paying such amount) an amount equal to the amount of
such VAT.  The Recipient shall promptly
pay to the Relevant Party an amount equal to any credit or repayment from the relevant
Tax authority which it reasonably determines relates to the VAT chargeable on
that supply.

 

(c)                                  If any party is required under any
Finance Document to reimburse costs and expenses incurred by any other party,
such reimbursement shall, to the extent that it relates to any amount in respect
of VAT incurred by such other party, be made only in respect of the portion of
such amount that is not recoverable by way of set-off against or repayment by
the relevant Governmental Authority to which such VAT has been paid.

 

152

 

14.8                         Tax Forms

 

For the avoidance of doubt, the Facility Agent shall
following a request by the Parent promptly deliver to the Parent all forms,
documentation, statements, certificates or certifications received by it from
any Finance Party pursuant to any Finance Document in respect of any Relevant
Tax.

 

15.                             TAX RECEIPTS

 

15.1                         Notification of Requirement to
Deduct Tax

 

If, at any time, an Obligor is required by law to
make any deduction or withholding from any sum payable by it hereunder or under
the Finance Documents (or if thereafter there is any change in the rates at
which or the manner in which such deductions or withholdings are calculated),
such Obligor shall promptly notify the Facility Agent.

 

15.2                         Evidence of Payment of Tax

 

(a)                                  If an Obligor makes any payment
hereunder or under the Finance Documents in respect of which it is required to
make any deduction or withholding, it shall pay the full amount required to be
deducted or withheld to the relevant taxation or other authority within the
time allowed for such payment under applicable law and shall, as promptly as
possible thereafter, deliver to the Facility Agent on behalf of the Bank or
Banks to which such payment was made a certified copy of the original official
receipt received by such Obligor (of if such receipt is not available such
other evidence of payment as is reasonably satisfactory to the Facility Agent)
evidencing the payment to such authority of the amounts so required to be
deducted or withheld in respect of that payment or that Bank’s share of such
payment.

 

(b)                                 If an Obligor fails to pay any
Relevant Taxes or any amount for or on account of any Relevant Taxes when due
to the appropriate taxing authority or fails to remit to the Facility Agent the
required receipts or other required documentary evidence, such Obligor shall
indemnify the Facility Agent and the Finance Parties for any incremental taxes,
interest or penalties that may become payable by the Facility Agent or any
Finance Party as a result of any such failure.

 

15.3                         Tax Credit Payment

 

(a)                                  If an additional payment is made
under Clause 14 (Taxes) or
Clause 15.2 (Evidence of Payment of Tax) by an
Obligor for the benefit of any Finance Party and such Finance Party, in its
sole discretion exercised in good faith, determines that it has obtained,
utilised and retained a credit against, a relief or remission for, or repayment
of, any tax, then, if and to the extent that such Finance Party, in its sole
opinion acting in good faith, determines that:

 

(i)                                     such credit, relief, remission or
repayment is in respect of or calculated with reference to the additional
payment made pursuant to Clause 14 (Taxes) or
Clause 15.2 (Evidence of Payment of Tax); and

 

153

 

(ii)                                  (except in relation to repayment of
any tax in respect of which additional amounts have been paid pursuant to
Clause 14.1 (Tax Gross-up)) its tax affairs
for its tax year in respect of which such credit, relief, remission or
repayment was obtained have been finally settled,

 

such Finance Party shall, to the extent that it can
do so without prejudice to the retention of the amount of such credit, relief,
remission or repayment, promptly pay to such Obligor such amount as such
Finance Party shall, in its sole opinion acting in good faith, determine to be
the amount which will leave such Finance Party (after such payment) in no worse
after-tax position than it would have been in had the additional payment in
question not been required to be made by such Obligor.  For the purposes of this Clause 15.3,
each Finance Party agrees to use reasonable endeavours to obtain any repayment,
credit, relief or remission to which it is or may be entitled.

 

(b)                                 An Obligor may, upon written
request, require the Finance Party promptly to produce reasonable evidence
(having regard to Clause 15.4  (Tax and Other Affairs)  below) as to
whether or not the criteria set out in paragraphs (i) and (ii) above
are satisfied.

 

15.4                           Tax and Other Affairs

 

No provision of Clauses 14 (Taxes), 15 (Tax Receipts)
or 18 (Mitigation and other Provisions relating to Taxes
and Increased Costs) shall interfere with the right of any Finance
Party to arrange its tax or any other affairs in whatever manner it thinks fit,
oblige any Finance Party to claim any credit, relief, remission or repayment in
respect of any payment under Clause 14.1 (Tax Gross-up)
in priority to any other credit, relief, remission or repayment available to it
or oblige any Finance Party to disclose any information relating to its tax or
other affairs or any computations in respect thereof.

 

16.                               INCREASED COSTS

 

16.1                           Increased Costs

 

If, by reason of (a) any change in law or in
its interpretation, administration or application and/or (b) compliance
with any request or requirement relating to the maintenance of capital or any
other request from or requirement of any central bank or other fiscal, monetary
or other authority, in either case, made after the date of this Agreement or
(if later) the date on which the relevant person becomes party hereto:

 

(a)                                  a Bank, L/C Issuer or any holding
company of such Bank or L/C Issuer is unable to obtain the rate of return on
its capital which it would have been able to obtain but for such Bank’s or L/C
Issuer’s entering into or assuming or maintaining a commitment or performing
its obligations under the Finance Documents or any Letter of Credit;

 

(b)                                 a Bank, L/C Issuer or any holding
company of such Bank or L/C Issuer incurs a cost as a result of such Bank’s or
L/C Issuer’s entering into or assuming or 

 

154

 

maintaining a commitment, issuing or performing its obligations under
the Finance Documents or any Letter of Credit; or

 

(c)                                  there is any increase in the cost to
a Bank, L/C Issuer or any holding company of such Bank or the L/C Issuer of
funding or maintaining such Bank’s or L/C Issuer’s share of the Advances,
any Unpaid Sum or any Letter of Credit,

 

then the Parent shall, from time to time on demand
of the Facility Agent, promptly pay to the Facility Agent for the account of
that Bank or L/C Issuer amounts sufficient to compensate that Bank or L/C
Issuer or to enable that Bank or L/C Issuer to compensate its holding company
from and against, as the case may be, (i) such reduction in the rate of
return of capital, (ii) such cost or (iii) such increased cost,
provided that no Bank or L/C Issuer shall claim any amount from the Parent
hereunder unless such Bank or L/C Issuer deems the relevant amount to be
material.

 

16.2                           Increased Costs Claims

 

A Bank or L/C Issuer intending to make a claim
pursuant to Clause 16.1 (Increased Costs)
shall promptly notify the Parent through the Facility Agent, and such notice
shall certify that (a) one of the events described in this Clause 16
has occurred and describe in reasonable detail the nature of such event, (b) the
amount of the reduction, cost or increased cost resulting from such event, and (c) the
amount of the compensation payment it is demanding from the Parent together
with a reasonably detailed calculation thereof.

 

16.3                           Exclusions

 

Notwithstanding the foregoing provisions of this
Clause 16, no Bank or L/C Issuer shall be entitled to make any claim under
this Clause 16 in respect of:

 

(a)                                  any tax (and, for the avoidance of
doubt, Clauses 14 (Taxes) and 15 (Tax Receipts) alone shall apply to tax);

 

(b)                                 any cost, increased cost or
liability which is directly attributable to such Bank or L/C Issuer entering
into a commitment to lend to a third party after the date of this Agreement
which is, at the date such commitment is entered into, in breach of any request
or requirement of any central bank or other fiscal, monetary or banking
authority relating to that Bank or L/C Issuer; or

 

(c)                                  any cost, increased cost or
liability resulting from the implementation by the applicable authorities
having jurisdiction over such Bank or L/C Issuer or its relevant Facility
Office of specific capital adequacy requirements officially announced prior to
the date of this Agreement to the extent clearly ascertainable from the announcement,
but not more stringent requirements on or after the date of this Agreement; or

 

(d)                                 any cost, increased cost or
liability arising solely by reason of such Bank’s or L/C Issuer’s unreasonable
delay in notifying the Facility Agent of its right to make a demand under the
Clause 16.1 (Increased Costs) after it has
become aware of and is able to ascertain the amount of its claim.

 

155

 

17.                               ILLEGALITY

 

If the adoption of or any change in any requirement
of law or in the interpretation or application thereof which occurs after the
date of this Agreement shall make it unlawful, for a Bank or L/C Issuer to
make, fund, issue, participate in or allow to remain outstanding all or part of
its share of the Advances or Letters of Credit, then that Bank or L/C Issuer
shall, promptly after becoming aware of the same, deliver to the Parent through
the Facility Agent a notice to that effect (which notice shall be withdrawn
upon such circumstances ceasing to exist) and:

 

(a)                                  such Bank or L/C Issuer shall not
thereafter be obliged to participate in any Advance or Letter of Credit until
such time as it shall no longer be unlawful for such Bank or L/C Issuer to do
so and the amount of its Total Commitments shall be immediately be cancelled
and reduced to zero; and

 

(b)                                 if the Facility Agent on behalf of
such Bank or L/C Issuer so requires, the Parent shall procure that each C
Borrower shall:

 

(i)                                     repay, as soon as practicable and,
in any case, within five days, such Bank’s share of any outstanding Advances
together with accrued interest thereon and all other amounts owing to such Bank
hereunder; and

 

(ii)                                  ensure that, as soon as practicable
and, in any case, within 5 days, the liabilities of such Bank or L/C Issuer
under or in respect of each Letter of Credit are reduced to zero or otherwise
secured by providing Cash Collateral in an amount equal to such Bank’s L/C
Proportion of such Letters of Credit or such L/C Issuer’s maximum actual and
contingent liabilities under such Letter Credit,

 

provided that, in relation to the repayment of any
outstanding Advances, if it is lawful for a Bank to allow to remain outstanding
all or part of its share of the Advances until the last day of the then current
Term applicable thereto, then the Parent shall not be obliged to procure the
repayment of such Advances until the last day of such Term

 

18.                               MITIGATION AND
OTHER PROVISIONS RELATING TO TAXES AND INCREASED COSTS

 

18.1                           Mitigation

 

If, in respect of any Finance Party, circumstances
exist which would or would upon the giving of notice result in:

 

(a)                                  a restriction upon its ability to
participate in or have any right or obligation under this Agreement in respect
of a Letter of Credit;

 

(b)                                 any amount being payable to it or
for its account pursuant to Clause 14.1 (Tax Gross-up);

 

(c)                                  a claim for indemnification pursuant
to Clause 14.2 (Tax Indemnity)
or Clause 16.1 (Increased Costs);
or

 

156

 

(d)                                 the reduction of its Available
Commitment to zero or any repayment to be made pursuant to Clause 17 (Illegality),

 

then, without in any way limiting, reducing or
otherwise qualifying the rights of such Finance Party or the obligations of the
Obligors under any of the Clauses referred to in the paragraphs above,
such Finance Party (if it is not the Facility Agent) shall (a) promptly
upon becoming aware of such circumstances (save to the extent existing on the
date of this Agreement) notify the Facility Agent thereof and (b) in
consultation with the Facility Agent and the Parent and to the extent that it
can do so lawfully and without prejudice to its own position, take such steps
as may reasonably be available to it and acceptable to the Parent (including,
in the case of a Bank or the Facility Agent, a transfer of its rights and
obligations under the Finance Documents to another affiliate or a relevant
Facility Office or (in the event that the relevant circumstances arise after
the date such Finance Party becomes party to this Agreement) the transfer of
its rights, benefits and obligations hereunder to another financial institution
acceptable to the Parent and willing to participate in the Facilities) to
mitigate the effects of such circumstances, provided that such Finance Party
shall be under no obligation to take any such action if, in the opinion of such
Finance Party acting in good faith, to do so might reasonably be expected to
have any adverse effect upon its business, operations or financial condition
(other than any minor costs and expenses of an administrative nature) or be
contrary to any relevant credit or other approvals, including internal
approvals, required by any relevant affiliate or branch of such Finance Party.

 

18.2                           Removal of Affected Bank

 

If, in the circumstances described in
Clause 18.1 (Mitigation), a Bank has failed to
take mitigating action in accordance with that Clause, the Parent shall have
the right, for so long as such circumstances exist, (i) to seek one or
more substitute Bank(s) reasonably satisfactory to the Parent to take a
transfer of such Bank’s participation in the Facilities in accordance with
Clause 36 (Assignments and Transfers), or (ii) upon
at least four Business Days, irrevocable notice to the Facility Agent, to
prepay such Bank’s portion of the relevant Outstandings.  In the case of a prepayment of an affected
Advance, the amount specified in the notice shall be due and payable on the
date specified therein, together with any accrued interest to such date on the
amount prepaid.  In the case of each of
the substitution of a Bank and of the prepayment of an affected Advance, the
Parent shall first pay the affected Bank any additional amounts owing to such
Bank prior to such substitution or prepayment.

 

18.3                           Change in Facility Office

 

If (other than pursuant to Clause 18.1 (Mitigation)) a Finance Party changes its Facility Office and
the effect of the change, as of the date of the change, would be to cause any
Obligor to become obliged to pay any additional amount under Clause 14 (Taxes) or 16 (Increased Costs),
such Obligor shall not be obliged to pay such additional amount.

 

19.                               REPRESENTATIONS

 

Subject to the terms of Clause 19.30 (Time of making representations), each Obligor (or, where
otherwise stated, the specified Obligors) makes the representations and 

 

157

 

warranties set out in this Clause 19 (Representations) in respect of itself and, where expressly
referred to, its subsidiaries at the times and in accordance with
Clauses 19.30 (Time of making
representations) and 19.31 (Repetition of
Representations).  Each of the
Obligors acknowledges that the Finance Parties have entered into this Agreement
in reliance on those representations and warranties.

 

19.1                           Status

 

(a)                                  It and each of its subsidiaries is a
corporation, company or other person duly incorporated (or, as the case may be,
organised) and, if applicable, in good standing, under the laws of its
jurisdiction of organisation.

 

(b)                                 It and each of its subsidiaries has
the power to own its assets and carry on its business substantially as it is
being conducted, save where the lack of such power is not reasonably likely to
have a Material Adverse Effect.

 

(c)                                  1677932 Ontario Limited has no
liabilities and, other than the common shares it holds in Hertz Canada Limited,
no assets.

 

19.2                           Governing Law and Judgments

 

In any proceedings taken in its jurisdiction of
organisation in relation to the Finance Documents to which it is a party, the
choice of English law (or in the case of any Security Documents governed by a
different jurisdiction’s law, the law of that jurisdiction) as the governing
law of the Finance Documents, and any judgment obtained in England (or such
other relevant jurisdiction) in relation to the Finance Documents, will be
recognised and enforced subject to applicable insolvency, bankruptcy,
liquidation, administration, moratorium, reorganisation and similar laws
affecting the rights of creditors generally, general principles of equity and
any other reservations made in the Legal Opinions.

 

19.3                           Binding Obligations

 

The obligations expressed to be assumed by it in the
Finance Documents to which it is a party are legal and valid obligations
binding on it and enforceable against it in accordance with the terms thereof
and each Security Document to which it is a party constitutes valid Security
ranking, subject to the reservations made in the Legal Opinions, in accordance
with terms thereof, in each case subject to applicable insolvency, bankruptcy,
liquidation, administration, moratorium, reorganisation and similar laws
affecting the rights of creditors generally, general principles of equity and
any other reservations made in the Legal Opinions.

 

19.4                           Execution of the Finance Documents

 

(a)                                  Its execution of the Finance
Documents to which it is a party and its exercise of its rights and performance
of its obligations thereunder (taken as a whole) do not and will not:

 

(i)                                     conflict in any material respect
with any agreement, mortgage, bond or other instrument or treaty to which it is
a party or which is binding 

 

158

 

upon it or any of its assets in such manner or to such extent as to
have or be reasonably likely to have a Material Adverse Effect;

 

(ii)                                  conflict (save to the extent, if
any, described in the Legal Opinions) in any material respect with its
constitutive documents; or

 

(iii)                               conflict in any material respect
with any applicable law or court judgment, in each case which would be
materially prejudicial to the interests of the Banks.

 

(b)                                 It has (or will, prior to execution,
have) the power to enter into the Finance Documents to which it is a party and
all corporate and other action required to authorise the execution of the
Finance Documents to which it is a party and the performance of its obligations
thereunder has been (or will, prior to execution, have been) duly taken.

 

19.5                           No Material Proceedings

 

No action or litigation, administration, regulatory
or arbitration proceeding of or before any court or agency which would be
reasonably likely to be adversely determined and, if so adversely determined,
would reasonably be expected to have a Material Adverse Effect has been started
or, to the best of its knowledge and belief, threatened against it or any of
its subsidiaries.

 

19.6                           Financial Statements

 

(a)                                  The Parent represents that, subject
to the ongoing audit in Canada which may result in the restatement thereof and
subject to usual year end adjustments, its Original Financial Statements:

 

(i)                                     were prepared in accordance with the
Applicable Accounting Principles save as disclosed therein;

 

(ii)                                  disclose all liabilities required to
be disclosed in accordance with the Applicable Accounting Principles; and

 

(iii)                               save as disclosed therein and save
as may be changed as a result of the audit by the revenue authorities in Canada
and as a result of usual year end adjustments, in the case of audited accounts,
give a true and fair view of the financial position of the Group and, in the
case of unaudited accounts, fairly present the financial position of the Group.

 

(b)                                 In relation to the Parent, its most
recent financial statements delivered pursuant to Clause 20 (Financial Information):

 

(i)                                     have been prepared in accordance
with the Applicable Accounting Principles;

 

(ii)                                  disclose all liabilities required to
be disclosed in accordance with the Applicable Accounting Principles; and

 

159

 

(iii)                               in the case of audited accounts,
give a true and fair view of the financial position of the Group, and, in the
case of unaudited accounts, fairly represent the financial position of the
Group.

 

19.7                           No Material Adverse Change

 

The Parent on its own behalf and on behalf of each
Obligor represents that, since the date of its Original Financial Statements,
other than the solicitation of offers to enter into the Acquisition Agreement,
the negotiation of the terms of and entering into of the Acquisition Agreement,
the announcement of the Acquisition Agreement and the consummation of the
transactions contemplated thereby and the entry into of the Finance Documents
and the B Bridge Finance Documents, there has been no change in the Group which
has had or could reasonably be expected to have a Material Adverse Effect.

 

19.8                           Validity and Admissibility in
Evidence

 

All acts, conditions and things required to be done,
fulfilled and performed (save for any such acts, conditions or things referred
to in the qualifications to the Legal Opinions and subject to applicable
bankruptcy or insolvency laws or other similar laws affecting creditors’ rights
or remedies generally and general principles of equity) in order (a) to
enable it lawfully to enter into, exercise its rights under and perform and
comply with the obligations (taken as a whole) expressed to be assumed by such
Obligor in the Finance Documents, (b) to ensure that the obligations
expressed to be assumed by such Obligor in the Finance Documents (taken as a
whole) are legal, valid, binding and enforceable and (c) to make the
Finance Documents admissible in evidence in its jurisdiction of organisation have
been done, fulfilled and performed, save in each case for any such act,
conditions or thing which the failure to do, fulfil or perform would not
reasonably be expected to have a Material Adverse Effect.

 

19.9                           Claims pari passu

 

Under the laws of its jurisdiction of incorporation
in force at the Closing Date or, in the case of an Obligor acceding after the
date of this Agreement, as at the date of the Accession Memorandum pursuant to
which such Obligor accedes, the claims of the Finance Parties against it under
the Finance Documents will rank at least pari passu with
the claims of all its unsecured and unsubordinated creditors save those whose
claims are preferred solely by any bankruptcy, insolvency, liquidation or other
similar laws or other provisions of general application.

 

19.10                     Compliance with Laws

 

(a)                                  It is in compliance with all laws
and regulations to which it may be subject except where failure to do so would
not reasonably be expected to have a Material Adverse Effect.

 

160

 

(b)                                 Each Borrower represents that the
proceeds of any Advance made to it under this Agreement:

 

(i)                                     have been and will be applied in
accordance with Clause 2.2 (Purpose and Application of
each A Facility) or Clause 2.3 (Purpose and
Application of C Facility) as the case may be; and

 

(ii)                                  have not been and will not be
applied in any other manner or for any other purpose, and, in particular, in
any other manner or for any other purpose that did not or will not comply in
all respects with, (x) in the case of any Borrower incorporated in the
United Kingdom, Sections 151 to 158 of the United Kingdom Companies Act 1985
or, (y) in the case of any other Borrower, any equivalent legislation in
the jurisdiction of incorporation of such other Borrower save to the extent
where to do so would not reasonably be expected to have a Material Adverse
Effect.

 

19.11                     No Winding-up

 

Except as permitted pursuant to Clause 22.10 (Mergers), such Obligor has not taken any corporate action
nor has any other steps been taken or legal proceedings been started or (to the
best of its knowledge and belief) threatened against it for its winding-up,
dissolution, administration, re-organisation, bankruptcy, moratorium of
payments, division or statutory merger (whether by voluntary arrangement,
scheme of arrangement or otherwise) or for the appointment of a receiver,
administrator, administrative receiver, conservator, custodian, trustee or
similar officer of it or of any or all of its assets or revenues.

 

19.12                     No Material Defaults

 

Neither such Obligor nor any of its subsidiaries is
in breach of or in default under any agreement to which it is a party or which
is binding on it or any of its subsidiaries or any of its assets to an extent
or in a manner which would reasonably be expected to have a Material Adverse
Effect.

 

19.13                     No Misleading Information

 

(a)                                  To the best of the Parent’s
knowledge and belief, the factual information with respect to the Group and any
Obligor that is an Orphan Financeco or Orphan SPV contained in the Information
Memorandum (taken as a whole) is in all material respects true and accurate
and, to the best of the Parent’s knowledge and belief, is not misleading in any
material respect and no factual information has been omitted that renders such
information contained in the Information Memorandum taken as a whole untrue or
misleading in any material respect in the context of the Facilities.

 

(b)                                 All opinions, predictions or
intentions expressed in the Information Memorandum on the part of the Parent
are honestly held or made after careful consideration and, to the best of the
Parent’s knowledge and belief, no factual information with respect to the Group
or any Obligor that is an Orphan 

 

161

 

Financeco or an Orphan SPV has been omitted that would render such
opinions, predictions or intentions misleading in any material respect.

 

(c)                                  All other written information
(including any Asset Report) provided by any member of the Group (including its
advisers) or any Obligor that is an Orphan Financeco or Orphan SPV to a Finance
Party in connection with the negotiation of the Finance Documents or included
therein or delivered pursuant thereto was, to the best of that Obligor’s
knowledge and belief, true, complete and accurate in all material respects as
at the date it was provided and, to the best of that Obligor’s knowledge and
belief, is not misleading in any respect as of such date.

 

(d)                                 Notwithstanding the foregoing, it is
understood that (a) no representation or warranty is made concerning (i) any
forecasts, estimates, pro forma information, projections and statements as to
anticipated future performance or conditions, and (ii) the assumptions on
which they were based, contained in the Information Memorandum, except that as
of the date such forecasts, estimates, pro forma information, projections and
statements were generated, (x) such forecasts, estimates, pro forma
information, projections and statements were based on the good faith
assumptions of the management of the Parent and (y) such assumptions were
believed by such management to be reasonable and (b) such forecasts,
estimates, pro forma information, projections and statements and the
assumptions on which they were based may or may not prove to be correct.

 

19.14                     Environmental Compliance

 

The Parent represents that, to the best of its
knowledge and belief, each Obligor and each of its subsidiaries has duly
performed and observed in all material respects all Environmental Law,
Environmental Permits and all other material covenants, conditions,
restrictions or agreements directly or indirectly concerned with any
contamination, pollution or waste or the release or discharge of any toxic or
hazardous substance in connection with any real property which is or was at any
time owned, leased or occupied by such Obligor or subsidiary or on which such
Obligor or subsidiary has conducted any activity except where failure to do so
would not reasonably be expected to have a Material Adverse Effect.

 

19.15                     Environmental Claims

 

The Parent represents that to the best of its
knowledge and belief, no Environmental Claim has been commenced or threatened
against it or any Obligor or any of its subsidiaries where such claim would be
reasonably likely to be adversely determined against any Obligor or any of its
subsidiaries and if so adversely determined, would reasonably be expected to
have a Material Adverse Effect.

 

19.16                     Encumbrances and Indebtedness

 

(a)                                  Save for Permitted Encumbrances, no
Encumbrance exists over all or any of the present or future revenues or assets
of such Obligor or any of its subsidiaries.

 

162

 

(b)                                 No Obligor nor any of its
subsidiaries has any Financial Indebtedness other than Permitted Indebtedness.

 

(c)                                  No Obligor nor any of its
subsidiaries has issued any guarantee or indemnity save as permitted under
Clause 22.2 (Loans and Guarantees).

 

19.17                     Ranking

 

The Parent represents that the Security has or will
have the ranking (subject to the reservations made in the Legal Opinions) in
priority which it is expressed to have in the Security Documents.

 

19.18                     Ownership of the Obligors

 

The Parent represents that each of the other
Obligors (other than any Obligor that is an Orphan Financeco, an Orphan SPV or
a partially owned Financeco or a partially owned SPV) is a direct or indirect
wholly-owned subsidiary of the Parent.

 

19.19                     Ownership of Parent

 

The Parent represents that the CD&R Investors,
the Merrill Lynch Investors and the Carlyle Investors directly or indirectly
through subsidiaries collectively hold or will hold a majority of the equity
share capital of the Parent.

 

19.20                     No Event of Default

 

The Parent represents that no Event of Default or
Potential Event of Default has occurred which has not been either remedied to
the satisfaction of the Facility Agent (acting reasonably) or expressly waived
in writing.

 

19.21                     Consents and Approvals

 

All necessary consents and approvals to the
transactions contemplated by the Finance Documents have been or, when required,
will be obtained and all consents, licences and other approvals and
authorisations reasonably necessary and material for the conduct of business by
the Group, any Orphan Financeco or Orphan SPV (as the case may be) have been,
or when required will be obtained, their terms and conditions have been
complied with in all material respects and they have not been and, so far as it
is aware, will not be revoked or otherwise terminated except where such failure
to obtain, non-compliance, revocation or termination would not reasonably
(after having taken into account any indemnity or claim against any other
person with respect to the issues in question) be expected to have a Material
Adverse Effect.

 

19.22                     Insurance

 

It and each of its subsidiaries has obtained
insurances on and in relation to its business and assets with reputable
underwriters or insurance companies against such risks and to such extent as is
usual for companies carrying on a business such as that carried on by such
member of the Group, Orphan Financeco or Orphan SPV (as the case may be).

 

163

 

19.23                     Taxation

 

(a)                                  No claims are being asserted against
it or any of its subsidiaries with respect to taxes which are reasonably likely
to be determined adversely to it or such subsidiaries and which, if so
adversely determined or after taking into account any indemnity of claim
against any other party with respect to such claim, would reasonably be
expected to have a Material Adverse Effect.

 

(b)                                 It and each of its subsidiaries has
duly and punctually paid and discharged all material taxes, assessments and
governmental charges imposed upon it or its assets within the time period
allowed therefor without imposing tax penalties or creating any Encumbrance
(other than Encumbrances of the nature described in paragraph (f) of
the definition of “Permitted Encumbrances”)
other than (i) such taxes, assessments and government charges with respect
to which the failure to pay would not reasonably be expected to have a Material
Adverse Effect and (ii) such taxes, assessments and government charges
that are being contested in good faith and with respect to which adequate
reserves are maintained on the books of the applicable Obligor in accordance
with the Applicable Accounting Principles.

 

19.24                     Good Title to Assets

 

To the best of its knowledge and belief, it and each
of its subsidiaries has good title to, or valid leases of, or other appropriate
licence, authorisation or consent to use, those material assets necessary to
conduct its business.

 

19.25                     US Government Regulations

 

(a)                                  The Parent represents that it is not
an “investment company” which is registered or required to be registered under
the United States Investment Company Act of 1940.

 

(b)                                 The Parent represents that it is not
and none of its subsidiaries and no Obligor that is an Orphan Financeco or an
Orphan SPV is engaged in the business of extending credit for the purpose of
purchasing or carrying margin stock (within the meaning of Regulation U of the
Board of Governors of the Federal Reserve System of the United States of
America) as in effect from time to time, and no proceeds of any Advance will be
used to purchase or carry any margin stock or to extend credit to others for
the purpose of purchasing or carrying any margin stock.

 

(c)                                  The Parent represents that it is not
and none of its subsidiaries nor any other Obligor that is an Orphan Financeco
or an Orphan SPV is a “holding company” or a “subsidiary company” of a “holding
company” or an “affiliate” of a “holding company” or of a “subsidiary company”
of a “holding company” within the meaning of the United States Public Utility
Holding Company Act of 1935.

 

164

 

19.26                     Pensions

 

The pension schemes of each Obligor and each of its
subsidiaries are funded to the extent required by law or otherwise comply with
the requirements of any material law applicable in the jurisdiction in which
the relevant pension scheme is maintained, in each case, where failure to do so
would reasonably be expected to have a Material Adverse Effect.

 

19.27                     The Acquisition

 

The Parent represents that as of the Closing Date,
the representations and warranties, to the knowledge of the Parent, of Holdco
and any of the other parties thereto contained in the Acquisition Agreement
(after giving effect to any amendments, supplements, waivers or other
modifications of the Acquisition Agreement prior to the Closing Date in
accordance with the U.S. ABL Credit Agreement and the terms of this Agreement),
to the extent a breach of such representation or warranty would result in
Holdco or any of its affiliates having a right to terminate its obligations
thereunder, are true and correct in all material respects except as otherwise
disclosed to the Facility Agent in writing prior to the Closing Date.

 

19.28                     Centre of Main Interests

 

In respect of any Obligor which is incorporated in
the European Union, for the purposes of The Council of the European Union
Regulation No. 1346/2000 on Insolvency Proceedings, its Centre of Main
Interest is situated in its jurisdiction of incorporation or organisation.

 

19.29                     Professional Market Party

 

Each Dutch Borrower is in compliance with the Dutch
Banking Act and any regulations issued pursuant thereto (including, but not
limited to, the Policy Guidelines and the Exemption Regulation) save to the
extent that any failure would not reasonably be likely to have a Material
Adverse Effect.

 

19.30                     Time of making representations

 

The representations set out in Clause 19.1 (Status) to Clause 19.29 (Professional
Market Party) shall be made as follows:

 

(a)                                  as at the date of this Agreement,
each Obligor shall make the representations set out in Clause 19.1 (Status) to Clause 19.12 (No Material
Defaults) (inclusive other than Clause 19.6 (Financial Statements) and Clause 19.7 (No Material Adverse Change)), Clause 19.16 (Encumbrances and Indebtedness), Clause 19.21 (Consents and Approvals) to Clause 19.24 (Good Title to Assets), Clause 19.26 (Pensions), Clause 19.28 (Centre of
Main Interests) if it is incorporated in the European Union and
Clause 19.29 (Professional Market Party)
if it is incorporated in The Netherlands;

 

(b)                                 as at the date of the execution of
an Accession Memorandum, each Additional Obligor and the Parent shall make the
representations set out in paragraph (a) (as applicable); and

 

165

 

(c)                                  the Parent shall, in addition to
those stated in paragraph (a) above, also make the representations:

 

(i)                                     set out in Clauses 19.6 (Financial Statements) and Clause 19.7 (No Material Adverse Change), Clause 19.14 (Environmental Compliance), 19.15 (Environmental
Claims),Clause 19.17 (Ranking),
Clause 19.18 (Ownership of the Obligors),
Clause 19.19 (Ownership of Parent),
Clause 19.20 (No Event of Default)
and Clause 19.25 (US Governmental
Regulations) (inclusive) as at the date of this Agreement;

 

(ii)                                  set out in Clause 19.13 (No Misleading Information) as at the date on which the
Information Memorandum was approved by the Parent; and

 

(iii)                               set out in Clause 19.27 (The Acquisition) at the time set out therein.

 

19.31                     Repetition of Representations

 

The Repeated Representations shall be deemed to be
repeated by each Obligor by reference to the facts and circumstances then
existing on the first day of each Term, each date on which an advance (other
than a Rollover Advance) is or is to be made, each date on which a Letter of
Credit is or is to be issued or its Term extended and each date on which a
person becomes (or it is proposed that a person becomes) an Additional Obligor
(provided that, in respect of any Advance made during the Certain Funds Period,
only the Certain Funds Repeated Representations will be deemed to be repeated
by the relevant Obligor on the date on which such Advance is made).

 

20.                               FINANCIAL
INFORMATION

 

20.1                           Annual Statements

 

(a)                                  The Parent shall, as soon as the
same become available, but in any event within 120 days after the end of each
of its financial years ending after the Closing Date (other than in the case of
the first such financial year ending after the Closing Date for which the
delivery period shall be 240 days), deliver to the Facility Agent in sufficient
copies for the Banks the consolidated financial statements of the Group for
such financial year, audited by the Auditors. 
Each set of consolidated financial statements delivered by the Parent
pursuant to this Clause 20.1(a) shall be accompanied by (i) a
statement comparing the actual performance of the Group during the financial
year to which such statements relate to (x) the performance projected for
such financial year in the Annual Budget for such financial year and (y) in
relation to the financial year ending 31 December 2006 and each subsequent
financial year, to the actual performance of the Group in the previous
financial year, and (ii) a Specified ECF Amount Certificate for such
financial year.

 

(b)                                 For the purposes of paragraph (a) above
only, the Group shall be determined without reference to any Obligor that is (i) not
an affiliate of any member of the Group and (ii) not required to be
consolidated with the Group for the purposes of the consolidated financial
statements of the Group in accordance with Applicable Accounting Principles.

 

166

 

(c)                                  Each Borrower shall, as soon as the
same are filed, deliver to the Facility Agent in sufficient copies for the Banks
such statutory financial statements of such Borrower for such financial year as
are filed in such Borrower’s jurisdiction of organisation.

 

20.2                           Quarterly Statements

 

(a)                                  The Parent shall as soon as the same
become available, but in any event within 60 days after the end of each of
its Financial Quarters ending after 1 January 2006 (other than in the
case of the fiscal quarter ending on 31 March 2006 for which the
delivery period shall be 150 days), deliver to the Facility Agent, in
sufficient copies for the Banks, consolidated financial statements of the Group
for such Financial Quarter, together with the Required Quarterly Information
relating to such Financial Quarter.

 

(b)                                 For the purposes of paragraph (a) above
only, the Group shall be determined without reference to any Obligor that is (i) not
an affiliate of any member of the Group and (ii) not required to be
consolidated with the Group for the purposes of the consolidated financial
statements of the Group in accordance with Applicable Accounting Principles.

 

20.3                           Reports

 

(a)                                  Subject to paragraph (b) below,
the Coordinator shall on each Reporting Date provide to the Facility Agent
(with a copy to the Security Agent) the relevant Asset Report specifying the
position as at the immediately preceding Calculation Date, accompanied with, if
and to the extent necessary, an original copy of such relevant document(s) required
(if any) by the Receivables Charges or the Designated Obligor Re-Charges and a
copy of the Designated Obligor Charges (in each case, if existing and not
already provided), as applicable, in respect of the Eligible Receivables of
such Borrower, it being agreed that in accordance with applicable laws and the
terms of the relevant Receivables Charge or Designated Obligor Charge and
related Designated Obligor Re-Charge, as applicable, any required
identification or specification of the receivables and Eligible Receivables
which are the subject of the Receivables Charge or Designated Obligor Charge
and related Designated Obligor Re-Charge, as the case may be, (as well as any
ancillary documents pertaining thereto) may be made by way of any appropriate
computerised data processing or storage systems as described in the Receivables
Charge or Designated Obligor Charge, and if such delivery is made no Borrower
shall be required to draw up any paper-based list of those receivables in
connection with the delivery of any Asset Report under any Facility.

 

(b)                                 Unless a C Borrower requires a C
Advance to be made on the Settlement Date relating to any First Calculation
Date occurring after the Closing Date, the Coordinator shall not be required to
deliver the relevant Asset Report on the Reporting Date relating to such First
Calculation Date.

 

167

 

20.4                           Annual Budget

 

(a)                                  The Parent shall within 120 days
after the commencement of each of its calendar years (other than in the case of
the first such calendar year commencing after the Closing Date for which the
delivery period shall be 180 days) deliver to the Facility Agent in sufficient
copies for the Banks an Annual Budget for the Group for such calendar year.

 

(b)                                 For the purposes of paragraph (a) above
only, the Group shall be determined without reference to any Obligor that is (i) not
an affiliate of any member of the Group and (ii) not required to be
consolidated with the Group for the purposes of the consolidated financial
statements of the Group in accordance with Applicable Accounting Principles.

 

20.5                           Other Financial Information

 

(a)                                  The Parent and each Obligor shall
from time to time deliver to the Facility Agent or any Arranger, such other
information relating to its financial condition, operation or taxation
arrangements, or those of its subsidiaries and details of Security Interests
granted by it or any other Obligor, as the Facility Agent (or any other Bank or
the Security Agent through the Facility Agent) or any Arranger may from time to
time reasonably request.

 

(b)                                 The Parent shall, once in each
calendar year, and at the request of the Facility Agent, make its senior
management available for a meeting with the Banks at such time and at such
location as the Parent and the Facility Agent, acting reasonably, may agree.

 

20.6                           Accounting Policies

 

The Parent shall ensure that either each set of
financial statements delivered pursuant to this Clause 20 is prepared
using accounting policies, practices and procedures, consistent in all material
respects with the Applicable Accounting Principles or that it delivers to the
Facility Agent with each quarterly or annual set of financial statements that
are not so consistent a reconciliation statement signed by the finance director
setting out in reasonable detail such information as shall be required to
reconcile such financial statements to the Applicable Accounting Principles to
be calculated.

 

20.7                           “Know your customer” checks

 

(a)                                  If:

 

(i)                                     the introduction of or any change in
(or in the interpretation, administration or application of) any law or
regulation made after the date of this Agreement;

 

(ii)                                  any change in the status of an
Obligor after the date of this Agreement; or

 

(iii)                               a proposed assignment or transfer by
a Bank of any of its rights and obligations under this Agreement to a party
that is not a Bank prior to such assignment or transfer,

 

168

 

obliges the Facility Agent or any Bank (or, in the
case of paragraph (iii) above, any prospective New Bank) to comply
with “know your customer” or similar
identification procedures in circumstances where the necessary information is
not already available to it, each Obligor shall promptly upon the request of
the Facility Agent or the relevant Bank supply, or procure the supply of, such
documentation and other evidence as is reasonably requested by the Facility
Agent (for itself or on behalf of any Bank) or any Bank (for itself or, in the
case of the event described in paragraph (iii) above, on behalf of
any prospective new Bank) in order for the Facility Agent, such Bank or, in the
case of the event described in paragraph (iii) above, any prospective
New Bank to carry out and be satisfied (acting reasonably) it has complied with
all necessary “know your customer” or other
similar checks under all applicable laws and regulations pursuant to the
transactions contemplated in the Finance Documents.

 

(b)                                 Each Bank shall promptly upon the
request of the Facility Agent supply, or procure the supply of, such
documentation and other evidence as is reasonably requested by the Facility
Agent (for itself) in order for the Facility Agent to carry out and be
satisfied it has complied with all necessary “know
your customer” or other similar checks under all applicable laws and
regulations pursuant to the transactions contemplated in the Finance Documents.

 

(c)                                  The Parent shall, by not less than
ten Business Days’ prior written notice to the Facility Agent, notify the
Facility Agent (which shall promptly notify the Banks) of its intention to
request that an Eligible Borrower becomes an Additional Borrower or any person
becomes Additional Guarantor pursuant to Clause 38 (Additional
Borrowers) or Clause 39 (Additional Guarantors,
Resignation of Guarantors and Designated Obligors; Change of Coordinator),
respectively.

 

(d)                                 Following the giving of any notice
pursuant to Clause 20.7(c) above, if the accession of such Additional
Borrower or Additional Guarantor obliges the Facility Agent or any Bank to
comply with “know your customer”
or similar identification procedures in circumstances where the necessary
information is not already available to it, the Parent shall with reasonable
promptness upon the request of the Facility Agent or any Bank supply, or
procure the supply of, such documentation and other evidence as is reasonably
requested by the Facility Agent (for itself or on behalf of any Bank) or any
Bank (for itself or on behalf of any prospective New Bank) in order for the
Facility Agent or such Bank or any prospective New Bank to carry out and be
satisfied it has complied with the results of all necessary “know your customer” or other similar checks
under all applicable laws and regulations pursuant to the accession of such
person to this Agreement as an Additional Borrower or Additional Guarantor.

 

21.                               POSITIVE
COVENANTS

 

21.1                           Maintenance of Legal Status and
Validity

 

(a)                                  Each Obligor shall maintain in full
force and effect all material authorisations, approvals, licences and consents
required in or by the laws of its jurisdiction 

 

169

 

of incorporation to enable it lawfully to enter into and perform its
obligations under the Finance Documents to which it is a party and to ensure,
subject to applicable bankruptcy or insolvency laws or other similar laws
affecting creditors rights or remedies generally, general principles of equity
and any other reservations made in the Legal Opinions, the legality, validity,
enforceability or admissibility in evidence in its jurisdiction of
incorporation of the Finance Documents to which it is a party.

 

(b)                                 Each Obligor shall (and shall
procure that each of its subsidiaries will) maintain its corporate form (or
partnership, as the case may be) and existence provided that each
Obligor that is a Financeco or an SPV shall use its reasonable best efforts to
ensure that it satisfies the bankruptcy remote criteria of each Rating Agency
at all times and each Obligor that is an Orphan Financeco or an Orphan SPV
shall ensure that it maintains its status as an Orphan Financeco or an Orphan
SPV at all times.

 

21.2                           Insurance

 

Each Obligor shall, and shall procure that each subsidiary
of such Obligor shall, maintain insurances on and in relation to its business
and assets with reputable underwriters or insurance companies in accordance
with Hertz customary practices.  Each
Obligor shall (if so requested) supply the Security Agent with copies of all
such insurance policies or certificates of insurance in respect thereof and
shall, in any event, notify the Security Agent of any material changes to its
insurance cover.

 

21.3                           Environmental Compliance

 

The Parent shall ensure that each member of the
Group and each other Obligor shall comply in all material respects with all
Environmental Laws and obtain and maintain any Environmental Permits breach of
which (or failure to obtain or maintain) would reasonably be expected to have a
Material Adverse Effect.

 

21.4                           Environmental Claims

 

The Parent shall inform the Facility Agent in
writing as soon as reasonably practicable upon becoming aware of the same if
any Environmental Claim has been commenced or (to the best of the Parent’s
knowledge and belief) is threatened against it, any of its subsidiaries or any
other Obligor in any case where such claim is reasonably likely to be adversely
determined against the Parent, any of its subsidiaries or any other Obligor
and, if so adversely determined, would reasonably be expected to have a
Material Adverse Effect or of any facts or circumstances which will or are
reasonably likely to result in any Environmental Claim being commenced or
threatened against any member of the Group or any other Obligor in any case
where such claim would be reasonably likely to have a Material Adverse Effect.

 

21.5                           Notification of Defaults

 

Each Obligor shall, upon it becoming aware of the
same (unless it is aware that such notice has already been given to the
Facility Agent and the Security Agent by another person), promptly inform the
Facility Agent and the Security Agent of the occurrence of any Event of Default
or Potential Event of Default and the steps (if any) being 

 

170

 

taken to remedy the same and, upon receipt of a
written request to that effect from the Facility Agent or the Security Agent,
confirm to the Facility Agent and the Security Agent that, save as previously
notified to the Facility Agent and the Security Agent or as notified in such
confirmation, no Event of Default or Potential Event of Default has occurred
and is continuing.

 

21.6                           Claims Pari Passu

 

Each Obligor shall ensure that at all times the
claims of the Finance Parties against it under the Finance Documents rank at
least pari passu with the claims of all its
unsecured and unsubordinated creditors save those whose claims are preferred by
any bankruptcy, insolvency, liquidation or other similar laws or other
applicable laws of general application.

 

21.7                           Consents and Approvals

 

Each Obligor shall comply with all applicable laws
(including, without limitation, all such laws relating to financial
assistance), rules, regulations and orders and obtain and maintain all
governmental and regulatory consents, filings and approvals the failure to
obtain, maintain or comply with which would reasonably be expected to have a
Material Adverse Effect.

 

21.8                           Conduct of Business

 

Each Obligor shall, and shall procure that each of
its subsidiaries shall, ensure that it has the right and is duly qualified to
conduct its business as it is conducted from time to time in all applicable
jurisdictions and does all things reasonably necessary to obtain, preserve and
keep in full force and effect all material rights including, without
limitation, all franchises, contracts, licences, consents and other rights
which are necessary and material for the conduct of its business save, in
relation to each member of the Group other than the Parent, to the extent that
failure to so qualify, obtain or preserve would not reasonably be expected to
have a Material Adverse Effect.

 

21.9                           Tax

 

Each Obligor shall and shall procure that each of
its subsidiaries shall duly and punctually pay and discharge (a) all
material taxes, assessments and governmental charges imposed upon it or its
assets within the time period allowed therefor without imposing penalties and
without resulting in an Encumbrance (other than a Permitted Encumbrance) with
priority to any Finance Party or any security purported to be granted by or
created pursuant to the Security Documents and (b) all material and lawful
claims for taxes which, if unpaid, would by law become Encumbrances (other than
Permitted Encumbrances) upon its assets, in each case other than (i) such
taxes, assessments and government charges with respect to which the failure to
pay would not reasonably be expected to have a Material Adverse Effect or (ii) such
taxes, assessments and government charges that are being contested in good
faith and with respect to which adequate reserves are maintained on the books
of the applicable Obligor in accordance with the Applicable Accounting
Principles.

 

171

 

21.10                     Preservation of Assets

 

Each Obligor shall and shall procure that each of
its subsidiaries shall maintain and preserve (save to the extent disposed of
pursuant to a Permitted Disposal) all of its assets that are (a) used in
determining any Borrower’s Borrower Asset Value and (b) necessary and
material in the conduct of its business as conducted on the Closing Date in
good working order and condition, ordinary wear and tear excepted except those
which the failure to maintain or preserve would not reasonably be expected to
have a Material Adverse Effect.

 

21.11                     Security Preservation

 

Each Obligor shall at its own expense, take all such
action as the Security Agent (or, in respect of any security to be granted
under the Australian Finance Documents, the Australian Orphan SPV) may
reasonably require for the purpose of perfecting, rendering opposable or
protecting the Security Agent’s (or, in respect of Australia only, the
Australian Orphan SPV’s) rights under and preserving the Security intended to
be created by any of the Finance Documents in respect of such Obligor’s (or if
such Obligor is a Financeco, its Related Opco’s) assets and, following the
making of any declaration pursuant to Clause 23.16 (Acceleration
and Cancellation) or Clause 23.19 (Advances Due
on Demand), for facilitating the realisation of any such security or
any part thereof.

 

21.12                     Litigation

 

The Parent shall promptly notify the Facility Agent
of the details of each litigation, regulatory or arbitration proceeding of or
before any court, agency or arbitrator which is reasonably likely to be
adversely determined and, if so determined, is reasonably likely to have a
Material Adverse Effect which has been commenced or to the knowledge of the
Parent threatened against it, any of its subsidiaries or any other Obligor.

 

21.13                     Labour Disputes

 

The Parent shall promptly advise the Facility Agent
forthwith of the details of each labour dispute affecting any Group member or
other Obligor which would be reasonably expected to be adversely determined,
and if so determined, would reasonably be expected to have a Material Adverse
Effect.

 

21.14                     Access

 

Each Obligor shall, and shall ensure its
subsidiaries shall, while an Event of Default is continuing and is not remedied
or waived, and subject to any restrictions to such access prescribed by law or
by any confidentiality agreement by which that Obligor is bound, ensure that
any one or more representatives of the Facility Agent and advisers of the
Facility Agent and/or any of the Banks will be allowed to have access to (a) its
premises, assets, books and records and to inspect the same during normal
business hours upon reasonable advance notice to such Obligor and subject to
restrictions on viewing or receiving confidential information that is the
subject of then-existing bona fide confidentiality arrangements with non affiliated
third parties, applicable law and 

 

172

 

the Group’s policy with respect to data protection
and fiduciary duties of officers of such Obligors and (b) meet and discuss
with the senior management of the Parent.

 

21.15                     Intellectual Property

 

The Parent shall (and shall procure that each member
of the Group and each other Obligor shall) do all acts as are reasonably
practicable to maintain, protect and safeguard the Material Intellectual
Property and not terminate or discontinue the use of any Material Intellectual
Property (and, in particular, shall not permit any registration thereof to
terminate, be abandoned, cancelled, lapse or be liable to any claim of
abandonment) or change adversely in a material respect any Material
Intellectual Property, any contracts relating to Material Intellectual Property
or take any action which could foreseeably imperil the existence or right of
the Group to use any Material Intellectual Property except (aa) in the ordinary
course of business or (bb) with the prior written consent of an Instructing
Group or (cc) pursuant to a Permitted Disposal or Permitted Encumbrance.

 

21.16                     Group Acceding Guarantors

 

(a)                                  The Parent shall ensure that any
other member of the Group, Orphan SPV or Orphan Financeco which becomes an
Additional Borrower shall become an Additional Guarantor provided that no
person shall be required to accede to this Agreement as an Additional Guarantor
or become a Designated Obligor to the extent that such accession or entering
into of the relevant Designated Obligor Intercompany Loan Agreement would
result in:

 

(i)                                     any violation of applicable law;

 

(ii)                                  liability of any of the officers,
directors, shareholders of such member or any of its holding companies or
subsidiaries;

 

(iii)                               violation of the provisions of any
joint venture governing or binding on such person or its subsidiaries or
holding companies;

 

(iv)                              material adverse effects on the tax
position (including, without limitation, the imposition of any material withholding
tax or the loss of any material tax deduction) of the Group or, with respect to
the Group, structuring considerations identified in reasonable detail to the
Facility Agent;

 

(v)                                 costs (including, without
limitation, any taxes, fees, charges, duties or expenses) which the Parent has
demonstrated to the Security Agent in reasonable detail would be likely to be
incurred; or

 

(vi)                              any material risk of any of the
foregoing.

 

(b)                                 The Parent shall procure that on the
date on which any Additional Borrower or Additional Guarantor accedes or any
person becomes a Designated Obligor, as applicable, it will provide such
security as the Facility Agent may require including:

 

173

 

(i)                                  in the case of a US Obligor, over (x) all
capital stock and other equity interests of any of its directly owned Material
Subsidiaries that are organised under the laws of the USA or any state thereof
and not more than 65 per cent. of the total outstanding capital stock and other
equity interests of any of its direct Material Subsidiaries that are organised
under the laws of any other jurisdiction (it being understood that a foreign
subsidiary of such US Obligor that is organised in the USA or any state thereof
and that has no material assets other than securities of one or more non-US
subsidiaries and indebtedness issued by such non-US subsidiaries, and other
assets relating to an ownership interest in any such securities, indebtedness
or subsidiaries will be deemed not to be organised in the USA or a state
thereof for the purposes of this provision) in each case excluding any
subsidiary that is a Permitted Joint Venture and (y) substantially all its
other tangible and intangible assets (including, without limitation,
receivables, contract rights, securities, US patents, US trademarks, other US
intellectual property, inventory, equipment and real estate interests), in each
case except to the extent that such assets are the subject of a Permitted
Securitisation or a Permitted Encumbrance referred to in paragraphs (b), (m) or
(n) of the definition thereof but subject to Clause 21.16(c) (Group Acceding Guarantors);

 

(ii)                               in the case of a non-US Obligor,
over (x) all issued share capital of its direct Material Subsidiaries
(other than any Permitted Joint Venture) and (y) fixed and (if available)
floating charges (or equivalent security interests) over substantially all its
other assets, in each case except to the extent that such assets are the
subject of  a Permitted
Securitisation or a Permitted Encumbrance referred to in paragraphs (b),(m) or
(n) of the definition thereof, but subject to Clause 21.16(c) (Group Acceding Guarantors); and

 

(iii)                            in the case of the Canadian
Guarantor, (x) all issued share capital of its direct material
subsidiaries other than any Excluded Canadian Company and (y) fixed and
(if available) floating charges (or equivalent security interests) over
substantially all of its other assets,

 

unless legal counsel to the Facility Agent has confirmed
that there is a legal impediment to such Additional Borrower or Additional
Guarantor providing such security and provided that (i) no security shall
be required (or be required to be registered or otherwise perfected) or the
form of such security (as appropriate) shall be modified, to the extent
required to avoid (a) any violation of applicable law, (b) liability
of any of the officers, directors or shareholders of such person, any of its
holding companies or subsidiaries, (c) violation of the provisions of any
joint venture arrangement governing or binding on such subsidiary or its
holding companies or subsidiaries, (d) material adverse effects on the tax
position of the Group (including without limitation the imposition of any
material withholding tax or the loss of any material tax deduction) of the
Group or, with respect to the Group, structuring considerations identified in
reasonable detail to the Facility Agent or, (e) material costs (including,
without limitation, any taxes, fees, charges, duties or 

 

174

 

expenses) 
which the Parent has demonstrated to the Security Agent in reasonable
detail would be excessive in relation to the benefits that would be conferred
by the granting of such security and are likely to be incurred or (f) any
material risk of the foregoing and provided, further, that any such security
from a Designated Obligor shall be provided in support of such Designated
Obligor’s obligations under the applicable Designated Obligor Intercompany Loan
Agreement, (ii) the Security Documents shall be on terms consistent with
the Security Principles (except to the extent that local law is contrary
thereto) and (iii) subject to Clause 21.16(c) the Parent shall
be deemed to have complied with this Clause 21.16(b) in respect of an
Additional Borrower or Additional Guarantor listed in Schedule 13 (Additional Guarantors and  Security)
and the assets of such Additional Borrower or Additional Guarantor on the
Closing Date if such Additional Borrower or Additional Guarantor has entered
into the Security Documents listed next to its name in Schedule 13 (Additional Guarantors and Security) in the agreed form or
other documents in form and substance satisfactory to the Security Agent
(acting reasonably).

 

(c)                                  If any assets of an Additional
Guarantor or Designated Obligor are the subject of a Permitted Securitisation
or a Permitted Encumbrance referred to in paragraphs (b) or (m) of
the definition thereof, such Additional Guarantor or Designated Obligor, as
applicable, shall grant in favour of the Finance Parties, in form and substance
satisfactory to the Security Agent (acting reasonably):

 

(i)                                  first ranking security over such
assets to the extent that such assets cease at any time to be the subject of any
Permitted Securitisation or any such Permitted Encumbrance (including, in the
case of any such Permitted Encumbrance, any Encumbrance securing a refinancing
of the relevant obligation provided such Encumbrance is itself a Permitted
Encumbrance referred to in paragraph (b) or (m) of the
definition thereof); and

 

(ii)                               without limitation of the foregoing
sub-paragraph (a), in the case of a Permitted Encumbrance referred to in
paragraphs (b) or (m) of the definition thereof, second ranking
security over such assets to the extent permitted by the terms thereof and
applicable local law,

 

provided that the proviso to Clause 21.16(b) shall
also apply to this Clause 21.16(c).

 

21.17                   Syndication

 

The Parent shall provide reasonable assistance to
the Arrangers in the primary syndication of the Facilities (including, without
limitation, by making management available for the purpose of making
presentations to, or meeting, potential lending institutions) and will comply
with all reasonable requests from the Arrangers for information.

 

21.18                   Share Security

 

Each Obligor which has executed a share pledge as
security for its obligations under the Finance Documents (the “Relevant Share Pledge”) shall inform the Security 

 

175

 

Agent (or, in respect of any security to be granted
under the Australian Finance Documents, the Australian Orphan SPV) without
undue delay of all matters concerning the company whose shares are pledged
pursuant to such Relevant Share Pledge of which such Obligor is aware, which
could reasonably be expected materially and adversely to affect the validity or
binding nature or enforceability of the security interest of the Finance
Parties (other than as specified in the Legal Opinions).  In particular, such Obligor shall notify the
Security Agent (or, in respect of any security to be granted under the
Australian Finance Documents, the Australian Orphan SPV) forthwith of any
shareholders’ meeting at which a shareholders’ resolution is intended to be
adopted which could reasonably be expected to have a material adverse effect
upon the validity or binding nature or enforceability of the Relevant Share
Pledge.

 

21.19                   Existing Indebtedness

 

The Parent shall procure that any Existing
Indebtedness except for that expressly identified in the Disclosure Letter or
as otherwise permitted under the definition of “Permitted
Indebtedness” is refinanced from the proceeds of Advances under the
Facilities to be used for that purpose as described in Clause 2.2(a)(i)(B) (Purpose and Application of each A Facility) and
Clause 2.3(a)(i)(B) (Purpose and Application of
C Facility), the proceeds of the High Yield Financing and the
proceeds of the financing under the U.S. ABL Credit Agreement and the U.S. LBO
Credit Agreement.

 

21.20                   New Vehicle and Equipment
Acquisitions

 

(a)                                Subject to Clause 21.21 (Purchase Price), a Borrower’s (or if such Borrower is a
Financeco, its Related Opco’s) purchase of any New Vehicles or New Equipment
Assets (as the case may be) shall be financed:

 

(i)                                   with the proceeds of any relevant
Advance; and

 

(ii)                                with (A) available cash or Cash
Equivalents, (B) the proceeds of any intercompany loans (including,
without limitation, any intercompany loans made from the proceeds of Advances),
Qualified Subordinated Shareholder Loans, Qualified Canadian Indebtedness and
other Permitted Indebtedness permitted under this Agreement and/or (C) in
the case of any A1 Borrower located in Spain or France, the proceeds of
any C Advance made to a C Borrower and, in the case of any C Borrower, the
proceeds of any A1 Advance or A2 Advance made to any A1 Borrower or A2
Borrower (as the case may be) located in Spain or France.

 

(b)                               Subject to Clause 21.21 (Purchase Price), if, at any time, the proceeds of any
Swingline Advance are used by any Borrower (or if such Borrower is a Financeco,
its Related Opco) to purchase any New Vehicle or any New Equipment Assets (as
the case may be), and on the immediately preceding Calculation Date after
taking account of the application of the proceeds of any Advances made on the
Settlement Date relating to such Calculation Date and the application of the
proceeds of such Swingline Advance as if the same had been made on such
Calculation Date, the relevant Borrower’s A1 Borrowing Base, A2 Borrowing Base
or C Borrowing Base (as the case may be) would 

 

176

 

not equal or exceed the aggregate outstanding amount of all Advances of
such Borrower on such Calculation Date, such Borrower or its Related Opco (as the case
may be) shall not finance with the proceeds of any Swingline Advance more than:

 

(i)                                   in the case of any A1 Swingline
Advance, the A1 Advance Rate of the purchase price of such New Vehicle;

 

(ii)                                in the case of any A2 Swingline
Advance, the A2 Advance Rate of the purchase price of such New Vehicle; and

 

(iii)                             in the case of any C Swingline
Advance, the C Advance Rate of the purchase price of such New Equipment Assets
(including registration and other standard fees and expenses incurred in
connection with such purchase).

 

21.21                   Purchase Price

 

To the extent the purchase price of any New Vehicles
or New Equipment Assets (as the case may be) acquired by any Borrower (or if
such Borrower is a Financeco, its Related Opco) remains outstanding after any
financing pursuant to Clause 21.20 (New Vehicle and Equipment
Acquisitions), the Borrower shall promptly cause (and the Parent
shall ensure that the Borrower promptly causes) the remainder of such purchase
price to be paid.

 

21.22                   Securitisation and Take-Out Financing

 

(a)                                Each Borrower shall (and the Parent
shall procure that each Borrower will) use its best efforts, save to the extent
the same would produce (A) any violation of applicable law, (B) liability
of any of the officers, directors, shareholders of such member or any of its
holding companies or subsidiaries, (C) violation of the provisions of any
joint venture governing or binding on such person or its subsidiaries or
holding companies or (D) material adverse effects on the tax position
(including, without limitation, the imposition of any material withholding tax
or the loss of any material tax deduction) of the Group or, with respect to the
Group, structuring considerations identified in reasonable detail to the
Facility Agent, to:

 

(i)                                   establish or cause to
be established an SPV and/or a Financeco promptly on or after the Closing Date,
including satisfying any relevant “bankruptcy remote” criteria of each Rating
Agency and specific asset segregation requirements (it being understood that,
subject to finalisation of the Take-Out Financing structure one SPV and/or
Financeco may be established and be used jointly by several Borrowers);

 

(ii)                                other than in respect
of an SPV or a Financeco whose Related Opco is organised in Canada, during the
period prior to a Take-Out Financing of the A1 Canadian Dollar Tranche and the
A2 Canadian Dollar Tranche, ensure that such SPV and/or Financeco becomes an
Eligible Borrower as soon as reasonably practicable after the Closing Date;

 

177

 

(iii)                            other than in respect
of an SPV or a Financeco whose Related Opco is organised in Canada, during the
period prior to a Take-Out Financing of the A1 Canadian Dollar Tranche and the
A2 Canadian Dollar Tranche, take all necessary measures to ensure that (x) in
the case of an SPV that is an A1 Borrower or A2 Borrower, such SPV or its
Related Opco benefits directly from all (A) Vehicle Dealer Buy-Back
Agreements, Vehicle Manufacturer Buy-Back Agreements, Vehicle Dealer Buy-Back
Guarantees and/or insurance policies relating to such Vehicle Dealer Buy-Back
Agreements and Vehicle Manufacturer Buy-Back Agreements and (B) Vehicle
Manufacturer Receivables, Vehicle Dealer Receivables, Insurance Receivables,
Rebate Receivables and Vehicle Manufacturer Guarantees, in each case, with
respect to the Core Country Fleet of such Borrower and to the extent available
on commercially reasonable terms and where the relevant Vehicle Manufacturer or
Vehicle Dealer has agreed to the application of the ABS Terms to vehicles
purchased by the SPV and (y) in the case of an SPV that is a C Borrower,
such SPV benefits directly from all (A) Equipment Manufacturer Buy Back
Agreements and/or insurance policies relating to such Equipment Manufacturer
Buy-Back Agreements and (B) Equipment Manufacturer Receivables, in each
case, with respect to the Equipment of such Borrower, such measures (in
relation to paragraphs (x) and (y)) to include, without limitation,
renegotiating, novating, assigning, amending or otherwise obtaining all
necessary consents under such Vehicle Dealer Buy-Back Agreements, Vehicle
Manufacturer Buy-Back Agreements, Vehicle Dealer Buy-Back Guarantees, Equipment
Manufacturer Buy-Back Agreements, insurance policies and other agreements
and/or declaring a trust over such agreements and/or rights derived therefrom,
as the Arrangers may reasonably require in connection with the Take-Out
Financing;

 

(iv)                           ensure,
where a security interest has been created in respect of such vehicle or
Equipment and where such security interest can be registered without material
cost and/or material operational constraint (provided that to the extent
that there is a material operational constraint in relation to any registration
of such security interest that the Parent shall notify the Facility Agent in
writing of such constraint) and to the extent available in the applicable
jurisdiction, that (i) in the case of an A1 Borrower or A2 Borrower
(other than a Canadian Borrower, a French Borrower, Italian Borrower or a Dutch
Borrower), the title registration (or relevant local registration document,
register or scheme) to each vehicle in the Core Country Fleet of such Borrower
shall note the security interest of the Security Agent upon the original
acquisition of title to such vehicle by such SPV and (ii) in the case of a
C Borrower, the title registration (or relevant local registration document,
register or scheme) for each Equipment of such Borrower shall note the security
interest of the Security Agent upon the original acquisition of title of such
Equipment by such SPV, ; and

 

178

 

(v)                               assist the Mandated Lead Arrangers
in order to achieve a reasonably satisfactory segregation of the assets
comprising such Borrower’s Borrower Asset Value.

 

(b)                               Each Borrower shall (and the Parent
shall procure that each Borrower will) use its best efforts to undertake and
complete the Take-Out Financing for the purpose of refinancing each Facility to
the extent required by and in accordance with the provisions of the Engagement
Letter (including, without limitation, the timing set out therein).

 

(c)                                The Parent shall procure that the
Coordinator undertakes and complies with the obligations and duties of the
“Hertz Coordinator” as set out in the Engagement Letter.

 

(d)                               The provisions of this
Clause 21.22 will only apply to Australian Orphan SPV if it does not
itself satisfy the requirements of paragraph (a) above or if it is
not a Take-Out Borrower.

 

21.23                   Pension Schemes

 

Each Obligor shall, and shall procure that each
subsidiary of such Obligor shall, ensure that all pension schemes for the time
being operated by members of the Group are fully funded to the extent required
by law, in each case, to the extent failure to do so would reasonably be
expected to have a Material Adverse Effect.

 

21.24                   On-Lending

 

To the extent any Advance is made to a Borrower that
is a Financeco, such Borrower shall promptly on-lend the proceeds of such
Advance (other than an amount equal to the incidental operating expenses
incurred or to be incurred by it) to its Related Opco provided:

 

(a)                                such Related Opco (unless it is a
Guarantor) has been accepted as a Designated Obligor for the purposes of this
Agreement in accordance with Clause 39.4 (Request for
Designated Obligor) and Clause 39.5 (Designated
Obligor Conditions Precedent) and has not ceased to be regarded as a
Designated Obligor under Clause 39.6 (Cessation of a Designated
Obligor);

 

(b)                               the applicable Designated Obligor
Intercompany Loan Agreement, the Designated Obligor Charge and the Designated
Obligor Re-Charge have been executed and delivered to the Facility Agent;

 

(c)                                such Borrower procures that such
Related Opco uses the proceeds of such Advance or Equity Financing (as the case
may be) in accordance with Clause 2.2 (Purpose and Application of
each A Facility), Clause 2.3 (Purpose and
Application of C Facility), Clause 21.20 (New Vehicle
and Equipment Acquisitions) or Clause 21.21 (Purchase Price) (as the case may be) and otherwise in
accordance with the terms of this Agreement; and

 

179

 

(d)                               in respect of an Australian Borrower
only, such Australian Borrower uses the proceeds of such Advance to acquire
notes under and in accordance with the Australian Subscription Deed.

 

21.25                   Hedging Transactions

 

The Parent shall promptly notify the Facility Agent
of any Permitted Hedging Transaction entered into with a Secured Hedge
Counterparty, providing details of the material terms thereof.

 

21.26                   Further Assurances

 

(a)                                Each Obligor shall (and the Parent
shall procure that each member of the Group will) promptly do all such acts or
execute all such documents (including assignments, transfers, mortgages,
charges, notices and instructions) as the Security Agent (or in the case of any
Security created in favour of the Australian Orphan SPV under the laws of
Australia, the Australian Orphan SPV) may reasonably specify (and in such form
as the Security Agent (or, the Australian Orphan SPV, as the case may be) may
reasonably require in favour of the Security Agent (or, the Australian Orphan
SPV, as the case may be) or its nominee(s)):

 

(i)                                   to perfect the Security created or
intended to be created under or evidenced by the Security Documents (which may
include the execution of a mortgage, charge, assignment or other Security over
all or any of the assets which are, or are intended to be, the subject of the
Security) or for the exercise of any rights, powers and remedies of the
Security Agent or the Finance Parties provided by or pursuant to the Finance
Documents or by law;

 

(ii)                                in the case of a Borrower, to confer
on the Security Agent or the Finance Parties a first perfected Security over
all freely available cash and Cash Equivalents of such Borrower (or if such
Borrower is a Financeco, its Related Opco);

 

(iii)                             to confer on the Security Agent or
the Finance Parties Security over any property and assets of that Obligor
located in any jurisdiction equivalent or similar to the Security intended to
be conferred by or pursuant to the Security Documents; and/or

 

(iv)                            to facilitate the realisation of the
assets which are, or are intended to be, the subject of the Security.

 

(b)                               Each Obligor shall (and the Parent
shall procure that each member of the Group shall) take all such action as is
available to it (including making all filings and registrations) as may be
reasonably necessary for the purpose of the creation, perfection, protection or
maintenance of any Security conferred or intended to be conferred on the
Security Agent or the Finance Parties by or pursuant to the Finance Documents.

 

180

 

(c)                                  The Parent shall procure that at
such time as Hertz Australia Pty Limited creates any Encumbrance in favour of
Westpac Banking Corporation described in paragraph (s) of the definition
of Permitted Encumbrance that contemporaneously with the creation of such
Encumbrance:

 

(i)                                   Hertz Australia Pty Limited shall
enter into a featherweight floating charge in favour of HA Funding Pty Limited
(the “Featherweight Floating Charge Project H”);
and

 

(ii)                                HA Funding Pty Limited shall enter
into a deed poll in relation to the Encumbrance created by the Featherweight
Floating Charge Project H,

 

in each case, in form and substance
satisfactory to the Facility Agent (acting reasonably).

 

21.27                   Canadian Guarantor

 

The Parent shall procure that promptly upon
satisfaction in full of all Euro MTN Obligations, Hertz Canada Limited will
accede as an Additional Guarantor pursuant to Clause 39.1 (Request for an Additional Guarantor) .

 

21.28                  VAT; Accounts

 

(a)                                The Parent shall procure that each
member of the Group which is an SPV in a Core Country shall:

 

(i)                                   upon receipt, deposit into its SPV
Collection Account each amount it receives from any person in respect of or
which represents VAT and promptly thereafter transfer such amount to its SPV
VAT Account; and

 

(ii)                                at any time, and to the extent of
the balance standing to the credit of its SPV VAT Account at such time, pay any
VAT Amount payable to any person and any amount payable to the relevant tax
authority by using funds standing to the credit of such SPV VAT Account.

 

(b)                                 The Parent shall procure that each
member of the Group which is an A1 Borrower or an A2 Borrower (or, if such
Borrower is a Financeco, its Related Opco), which has purchased vehicles in
accordance with the terms of this Agreement and which is liable to pay and has
paid any amount in respect of or which represents VAT on any supply of vehicles
to it and in respect of which such Borrower or its Related Opco (as the case may
be) is, following the end of its relevant return or accounting period for VAT
purposes, entitled to a credit or repayment from the relevant tax authority,
shall promptly submit its return to such tax authority claiming such credit or
seeking such repayment (as the case may be).

 

181

 

22.                            NEGATIVE
COVENANTS

 

22.1                         Negative Pledge

 

No Obligor shall and each Obligor shall procure that
none of its subsidiaries shall create or permit to subsist any Encumbrance over
all or any of its present or future revenues or assets other than a Permitted
Encumbrance.

 

22.2                         Loans and Guarantees

 

No Obligor shall and each Obligor shall procure that
none of its subsidiaries shall make any loans, grant any credit (save in the
ordinary course of business) or give any Guarantee other than Permitted
Investments and Permitted Loans and Guarantees.

 

22.3                         Indebtedness

 

No Obligor shall and each Obligor shall procure that
none of its subsidiaries shall incur or allow to remain outstanding any
Financial Indebtedness other than Permitted Indebtedness.

 

22.4                         Hedging Transactions

 

No Obligor shall and each Obligor shall procure that
none of its subsidiaries shall enter into any Hedging Transaction which is not
a Permitted Hedging Transaction.

 

22.5                         Subordinated Debt

 

So long as an Event of Default has occurred and is
continuing and at any time in relation to Shareholder Subordinated Loans
entered into prior to the Closing Date, no Obligor shall and each Obligor shall
procure that none of its subsidiaries shall pay, prepay, exchange (other than
an exchange for share capital or other equity interests or another Shareholder
Subordinated Loan) or repay or repurchase any amount under the Shareholder
Subordinated Loan Agreements, provided that for the avoidance of doubt that any
Shareholder Subordinated Loan or part thereof (i) can be declared at any
time due and repayable by the relevant lender for the purpose of the conversion
of such Shareholder Subordinated Loan or part thereof into share capital of the
Parent, and (ii) can accordingly be converted into share capital of the
Parent at any such time.

 

22.6                         Disposals

 

No Obligor shall and each Obligor shall procure that
none of its subsidiaries shall sell, lease, transfer or otherwise dispose of,
by one or more transactions or series of transactions (whether related or not),
the whole or any part of its revenues or its assets save for Permitted
Disposals.

 

22.7                         Acquisitions

 

Other than the Acquisition, any Permitted
Investment, any Permitted Acquisition or any transaction contemplated by
Clause 21.22 (Securitisation and
Take-out Financing), no Obligor shall and each Obligor shall procure
that none if its subsidiaries shall (a) purchase, subscribe for or
otherwise acquire any shares (or other securities or any interest therein) in,
or incorporate, any other company or agree to do 

 

182

 

any of the foregoing or (b) purchase or
otherwise acquire any business or undertaking or any interest therein or agree
to do so or (c) form, or enter into, any partnership, consortium, joint
venture or other like arrangement.

 

22.8                         Distributions

 

Other than Permitted Distributions, the Parent shall
not pay or make or declare any dividend, return on capital, repayment of capital
contributions or other distribution on or the making of any distribution of
assets or other payment whatsoever in respect to its share capital whether
directly or indirectly.

 

22.9                         Change of Business

 

The Parent shall procure that no member of the Group
and no other Obligor shall enter into any business, either directly or through
any of its subsidiaries, except for (i) those businesses of the same
general type as those in which any member of the Group or the Target Group is
engaged in on the date of this Agreement or which are related thereto or (ii) as
envisaged in the Finance Documents.

 

22.10                  Mergers

 

(a)                                  No Obligor shall and each Obligor
shall procure that none of its subsidiaries shall merge or consolidate with any
other person, enter into any demerger transaction, or participate in any other
similar type of corporate reconstruction or change in legal status (other than
a merger, or a solvent reorganisation, consolidation or winding-up by an
Obligor (other than the Parent) with or into another Obligor or by any
subsidiary of the Parent into any wholly owned subsidiary of the Parent
(provided that the wholly owned subsidiary shall be the surviving entity)),
unless the Facility Agent is reasonably satisfied (having taken appropriate
advice from counsel in the relevant jurisdiction) that such transaction will
not materially adversely affect the interests of the Banks and provided that (x) all
obligations of the merging entity under the Finance Documents shall be assumed
by the surviving entity, (y) the shares and assets of the surviving entity
including any shares and assets transferred to it in connection with such
merger (to the extent subject to security under the Security Documents prior to
the date of the merger) shall remain or become (as the case may be) subject to
security under the Security Documents, and (z) the Facility Agent shall
have received a legal opinion in form and substance satisfactory to it (acting
reasonably) in relation to such merger.

 

(b)                                 For the avoidance of doubt, the
Parent shall cause the amalgamation of Hertz Canada Limited and 1677932 Ontario
Limited to occur within one Business Day of the Closing Date, and at the time
of such amalgamation, the Parent covenants that 1677932 Ontario Limited shall
have no liabilities and assets, other than the assets and liabilities it
assumes from Hertz Canada Limited.

 

22.11                   Acquisition Agreement and Other
Documents

 

The Parent shall procure that, without the consent
of the Facility Agent, no person shall amend, supplement or otherwise modify (pursuant
to a waiver or otherwise) the terms and conditions of:

 

183

 

(a)                                  any Tax Sharing Agreement in any
manner that would materially increase the amounts payable thereunder, other
than amendments reasonably reflecting changes in law or regulations after the
Closing Date; or

 

(b)                                 the Hertz Intercompany Loan in any
way which would reasonably be expected to be materially adverse to the
interests of the Banks under the Finance Documents.

 

22.12                   Centre of Main Interests

 

No Obligor which is incorporated in the European
Union shall change its Centre of Main Interests.

 

22.13                   Arm’s Length Transactions

 

No Obligor shall (and the Parent shall ensure no
member of the Group or any of their respective subsidiaries will) enter into
any transaction, including any purchase, sale, lease or exchange of property or
the rendering of any service, with any Parent Company, any Equity Investor or
affiliate (other than the Parent and its subsidiaries and Orphan SPVs and
Orphan Financecos) (“Excluded Intra-Group
Members”)) unless such transaction is (a) otherwise permitted
under this Agreement, and (b) upon terms no less favourable to such
Obligor or member of the Group, as the case may be, than it would obtain in a
comparable arm’s length transaction with a person which is not a Parent
Company, Equity Investor or affiliate (other than an Excluded Intra-Group
Member); provided that nothing contained in this Clause 22.13 shall be
deemed to prohibit:

 

(a)                                  any Obligor or any member of the
Group from entering into or performing any consulting, management or employment
agreements or other compensation arrangements with a director, officer or
employee of any Parent Company or any Equity Investor that provides for annual
aggregate base compensation not in excess of €1,000,000 for each such director,
officer or employee;

 

(b)                                 any Obligor or any member of the Group
from entering into or performing an agreement with any Equity Investor for the
rendering of management consulting or financial advisory services for
compensation not to exceed in the aggregate an amount equal to the Group’s
proportional share (as determined by reference to the Parent Companies and
their subsidiaries, taken as a whole) of USD7,500,000 (or its equivalent) per
year plus reasonable out-of-pocket expenses;

 

(c)                                  the payment of transaction expenses
in connection with this Agreement;

 

(d)                                 any Obligor or any member of the
Group from entering into, making payments pursuant to and otherwise performing
an indemnification and contribution agreement in favour of any Permitted Holder
and each person who is or becomes a director, officer, agent or employee of any
Obligor or any member of the Group, in respect of liabilities (A) arising
under any applicable securities laws or otherwise, in connection with any
offering of securities by any Parent Entity (provided that, if such Parent
Entity shall own any material assets other than the Capital Stock of CCMGC or
another Parent Entity, or 

 

184

 

other assets relating to the ownership interest of such Parent Entity
in CCMGC or another Parent Entity, such liabilities shall be limited to the
reasonable and proportional share, as determined by the Parent in its
reasonable discretion, of such liabilities relating or allocable to the
ownership interest of such Parent Entity in CCMGC or another Parent Entity and
such other related assets) or CCMGC or any of its subsidiaries, (B) incurred
to third parties for any action or failure to act of any Obligor or any member
of the Group, predecessors or successors, (C) arising out of the
performance by any Parent Company or Equity Investor of management consulting
or financial advisory services provided to any Obligor or any member of the
Group, (D) arising out of the fact that any indemnitee was or is a
director, officer, agent or employee of any Obligor or any member of the Group,
or is or was serving at the request of any such corporation as a director,
officer, employee or agent of another corporation, partnership, joint venture,
trust or enterprise or (E) to the fullest extent permitted by applicable
law, arising out of any breach or alleged breach by such indemnitee of his or
her fiduciary duty as a director or officer of any Obligor or member of the
Group;

 

(e)                                  any Obligor or any member of the
Group from performing any agreements or commitments with or to any Parent Company
or any Equity Investor existing on the Closing Date and expressly described as
such in the Disclosure Letter;

 

(f)                                    any transaction permitted under
clauses (b), (d) and (h) of the definition of “Permitted Loans and Guarantees”,
Clause 22.5 (Subordinated Debt),
Clause 22.10 (Mergers), any
Permitted Distribution, any Permitted Investment described in
paragraphs (d), (f), (k), (l), (m) or (p) of that definition;

 

(g)                                 any Obligor or any member of the
Group from performing its obligations under a Tax Sharing Agreement;

 

(h)                                 any Obligor or any member of the
Group from entering into or performing any transaction described in
paragraphs (a)(ii)(D) and (a)(v) of the definition of “Permitted Distributions”;

 

(i)                                     the Parent from paying to any Equity
Investor or any of their respective Affiliates fees of up to USD75,000,000 (or
its equivalent) in the aggregate, plus out-of-pocket expenses, in connection
with the Transactions; or

 

(j)                                     the Transactions and all
transactions relating thereto.

 

For purposes of this Clause 22.13, (A) any
transaction with any Parent Company, Equity Investor or any affiliate shall be
deemed to have satisfied the standard set forth in Clause (b) of the
first sentence hereof if (i) such transaction is approved by a majority of
the Disinterested Directors of the board of directors of any Parent Company,
the Parent or such Obligor or member of the Group, or (ii) in the event
that at the time of any such transaction, there are no Disinterested Directors
serving on the board of directors of any Parent Company, the Parent or such
Obligor or member of the Group, such transaction shall be approved by an
internationally recognised expert with expertise in appraising the terms and
conditions of the type of transaction for which approval is required, and (B) “Disinterested
Director” shall mean, with respect to any person and transaction, a member of
the board of directors (or equivalent 

 

185

 

governing body) of such person who does not have any
material direct or indirect financial interest in or with respect to such
transaction.

 

22.14                   A2 Anti-Layering

 

No A2 Borrower shall (and each A2 Borrower will
procure that none of its subsidiaries or Related Opcos shall) directly or
indirectly, incur or suffer to exist any Indebtedness for Borrowed Money that
is or purports to be by its terms (or by the terms of any agreement governing
such Indebtedness for Borrowed Money) senior in right of payment to the A2
Facility and/or any Advances made pursuant thereto and subordinated in right of
payment to any other Indebtedness for Borrowed Money of such Borrower or any of
its subsidiaries or Related Opcos, as the case may be.  For the purposes of the foregoing, no
Indebtedness for Borrowed Money will be deemed to be subordinated in right of
payment to any other Indebtedness for Borrowed Money of any A2 Borrower or any
subsidiary of any such Borrower or Related Opco solely by virtue of being
unsecured or secured by a junior priority Encumbrance or by virtue of the fact
that the holders of such Indebtedness for Borrowed Money have entered into
intercreditor agreements or other arrangements giving one or more of such
holders priority over the other holders in the collateral held by them.

 

22.15                   Maximum number of Lenders

 

No Swiss Obligor shall be indebted at any time to
more than 20 lenders (including the Banks under this Agreement), which are not
Qualifying Banks.

 

23.                             EVENTS OF
DEFAULT

 

Each of Clause 23.1 (Failure to
Pay) to Clause 23.15 (Auditor’s Qualification)
describes circumstances which constitute an Event of Default for the purposes
of this Agreement.

 

23.1                         Failure to Pay

 

Any sum due from an Obligor or the Obligors under
this Agreement (including, for the avoidance of doubt, any Accession
Memorandum) is not paid at the time, in the currency and in the manner
specified herein or therein unless such failure to pay relates to an interest
payment, fee payment or any other payment hereunder (not being a repayment of
principal) and payment is made within 5 days of the due date.

 

23.2                         Misrepresentation

 

Any representation or statement made or deemed to be
made by an Obligor in the Finance Documents or in any certificate delivered by
it pursuant thereto or in connection therewith is or proves to have been
incorrect or misleading in any material respect when made or deemed to be made
and the circumstances giving rise to such misrepresentation, if capable of
alteration, are not altered so as to make such representation or statement
correct or not misleading by the date falling 30 days after the earlier of the
date upon which such Obligor becomes aware of such misrepresentation and the
date on which such Obligor receives notice of such misrepresentation from the
Facility Agent.

 

186

 

23.3                         Obligations

 

An Obligor fails duly to perform or comply with:

 

(a)                                  its obligation under
Clause 22.3 (Indebtedness) such that any
indebtedness permitted under paragraph (o) of the definition of “Permitted Indebtedness” is not reduced to
€60,000,000 or less on any Settlement Date or within 3 Business Days
thereafter;

 

(b)                                 Clause 20 (Financial
Information), Clause 21.5 (Notification of Defaults),
Clause 21.8 (Conduct of Business),
Clause 21.21 (Purchase Price),
Clause 22.1 (Negative Pledge),
Clause 22.2 (Loans and Guarantees),
Clause 22.3 (Indebtedness), Clause 22.4 (Hedging Transactions) or Clause 22.14 (A2 Anti-Layering) and such failure, if capable of remedy is
not remedied within 15 days after the earlier of the date on which the relevant
Obligor becomes aware of such breach and the date on which the relevant Obligor
receives written notice from the Facility Agent to remedy such breach;

 

(c)                                  Clause 21.11 (Security Preservation) or Clause 22.7 (Acquisitions) and, if such failure is capable of remedy, the
relevant Obligor has not within seven days of the earlier of the date on which
it became aware of such breach and the date on which it receives written notice
from the Facility Agent to remedy such breach, taken all steps reasonably
necessary to remedy such failure or such failure is not, within 21 days,
thereafter duly remedied; or

 

(d)                                 any other obligation expressed to be
assumed by it in the Finance Documents (other than any obligation referred to
in Clause 23.1 (Failure to Pay)
or 23.2 (Misrepresentation) and such failure, if
capable of remedy, is not remedied within 30 days after the earlier of the date
on which such Obligor becomes aware of such failure and the date on which such
Obligor receives written notice from the Facility Agent to remedy such failure.

 

23.4                         Cross Default

 

(a)                                  Any Financial Indebtedness (other
than Financial Indebtedness under the Brazilian B Bridge Facilities and
Financial Indebtedness of the Italian Borrower under the Italian Non-Guaranteed
Tranches) of any member of the Group or any other Obligor  is not paid when due or within any originally
applicable grace period, any Financial Indebtedness (other than Financial
Indebtedness under the Brazilian B Bridge Facilities and Financial Indebtedness
of the Italian Borrower under the Italian Non-Guaranteed Tranches)) of any
member of the Group or any other Obligor is by reason of an event of default
(howsoever described) declared to be or otherwise becomes due and payable prior
to its specified maturity, or any creditor of any member of the Group or any
other Obligor becomes entitled (having given any relevant notice and any
relevant grace period having elapsed) by reason of a default or an event of
default (howsoever described) to declare any Financial Indebtedness (other than
Financial Indebtedness under the Brazilian B Bridge Facilities and Financial
Indebtedness of the Italian Borrower under the Italian Non-Guaranteed Tranches)
of any member of the Group or any other Obligor 

 

187

 

due and payable prior to its specified maturity, provided that it shall
not constitute an Event of Default if the aggregate amount of all such
Financial Indebtedness at any one time outstanding is less than €15,000,000 (or
its equivalent) and provided further that any such Financial Indebtedness in
relation to the relevant member of the Group or other Obligor as the case may
be, is contesting its liability in good faith by appropriate proceedings shall
be excluded for the purposes of this Clause 23.4 (Cross
Default).

 

(b)                                 Any Financial Indebtedness of the
Target or any of its subsidiaries under the U.S. ABL Credit Agreement or the
U.S. LBO Credit Agreement (“US Financial
Indebtedness”) is not paid when due or within any originally
applicable grace period, any US Financial Indebtedness of the Target or any of
its subsidiaries is by reason of any event of default (howsoever described)
declared to be or otherwise becomes due and payable prior to its specified
maturity, or any creditor of the Target or any of its subsidiaries becomes
entitled (having given any relevant notice and any relevant grace period having
elapsed) by reason of a default of an event of default (howsoever described) to
declare any US Financial Indebtedness of the Target or any of its subsidiaries
due and payable prior to its specified maturity, provided that it shall not
constitute an Event of Default if the aggregate amount of all such US Financial
Indebtedness at any one time outstanding is less than USD60,000,000 (or its equivalent)
and provided further that any such Financial Indebtedness in relation to which
the Target or the relevant subsidiary as the case may be, is contesting its
liability in good faith by appropriate proceedings shall be excluded for the
purposes of this Clause 23.4 (Cross-Default).

 

23.5                         Insolvency and Rescheduling

 

Subject as provided in Clause 23.17 (Non-Material Subsidiaries), any Obligor or Material
Subsidiary, is insolvent or unable to pay its debts as they fall due (or in
respect of any French Obligor, is in a state of “cessation des paiements” and
in respect of any Spanish Obligor, is in a state of “concurso”, as referred to
under the Spanish Insolvency Act), commences negotiations with any one or more
of its creditors with a view to the general readjustment or rescheduling of its
indebtedness or any similar concept in any relevant jurisdiction (including, in
respect of any French Obligor, any proceeding referred to under “LIVRE VI” of
the French Commercial Code) or makes a general assignment for the benefit of or
a composition with its creditors (whether by way of a voluntary arrangement,
scheme of arrangement or otherwise) or any similar concept in any relevant
jurisdiction or, if in respect of any Spanish Obligor, it cannot (or foresees
that it will not be able to) fulfil on a regular and timely basis its
obligations as they become enforceable.

 

23.6                         Winding-up

 

Subject as provided in Clause 23.17 (Non-Material Subsidiaries), any Obligor or Material
Subsidiary takes any corporate action or other steps are taken or legal
proceedings are started to adjudicate it a bankrupt or insolvent or for its
liquidation, winding-up, dissolution, administration (including, in respect of
any French Obligor, any proceeding referred to under “LIVRE VI” of the French
Commercial Code), re-organisation, bankruptcy, relief or composition of its
debts, moratorium of 

 

188

 

payments, division or statutory merger (whether by
way of voluntary arrangement or compromise, scheme of arrangement or otherwise)
or for the appointment of a liquidator, receiver, receiver and manager,
administrator, administrative receiver, conservator, custodian, trustee or
similar officer of it (including any administrateur judiciaire, administrateur
provisoire, mandataire ad hoc, conciliateur or mandataire liquidateur and any
“administradores concursales” appointed pursuant to a “declaración de
concurso”, as referred to under the Spanish Insolvency Act) or of any material
part or all of its revenues and assets, unless any such legal proceeding or
appointment is frivolous or vexatious and is dismissed, stayed or discharged
within 21 days of its commencement (other than any transaction permitted
by Clause 22.10 (Mergers)) or
any event occurs which under the laws of any jurisdiction has a similar or
analogous effect (including, without limitation, any member of the Group or,
any other Obligor commences a voluntary case concerning itself under Title 11
of the United States Code entitled “Bankruptcy,” as now or hereafter in effect,
or any successor thereto (the “Bankruptcy Code”),
an involuntary case is commenced against any member of the Group or any other
Obligor and the petition is not controverted within 30 days after service of
summons, or is not dismissed within 60 days, after commencement of the
case or a custodian (as defined in the Bankruptcy Code) is appointed for, or
takes charge of, all or substantially all of the property of any member of the
Group, any Obligor or Holdco).

 

23.7                         Execution or Distress

 

Any execution, attachment, sequestration or distress
is levied against, or an encumbrancer takes possession of, the whole or any
part (the value of which exceeds €15,000,000 (or its equivalent)) of, the
property, undertaking or assets, of any member of the Group or any Obligor or
any event occurs which under the laws of any jurisdiction has a similar or
analogous effect, and is not discharged within 21 days.

 

23.8                         Failure to Comply with Final
Judgment

 

Any member of the Group or any Obligor fails to
comply with or pay any sum due from it under any final judgment or any final
order made or given by any court of competent jurisdiction involving an amount
(net of any insurance or indemnity payment in relation thereto) in excess of
€15,000,000 (or its equivalent) and such order shall not have been discharged,
stayed or appealed against within 30 days of the making of such order.

 

23.9                         Governmental Intervention

 

Subject as provided in Clause 23.17 (Non-material Subsidiaries), by or under the authority of any
government, all or a majority of the issued shares of any Obligor or the whole
or any part (the book value of which is twenty per cent. or more of the book
value of the whole) of the revenues or assets of any Obligor is seized,
nationalised, expropriated or compulsorily acquired.

 

23.10                   Repudiation and Rescission

 

An Obligor rescinds or purports to rescind or
repudiates or purports to repudiate a Finance Document or any of the Security
or evidences an intention to rescind or repudiate a Finance Document or any
Security, in each case in writing.

 

189

 

23.11                   Unlawfulness and Invalidity

 

Subject as provided in Clause 23.17 (Non-material Subsidiaries), at any time or, in the case of
the Acquisition Agreement, at any time prior to the last date of the Certain
Funds Period, it is or becomes unlawful for an Obligor or, in the case of the
Intercreditor Deed, a member of the Group to perform or comply with any or all
of its material obligations under the Finance Documents or the Acquisition
Agreement or any of the material obligations of an Obligor or such member
thereunder are not or cease to be legal, valid, binding and enforceable in
accordance with the terms thereof or any Security created or expressed to be
created or evidenced by the Security Documents ceases to be effective (except
as otherwise permitted by the Finance Documents) or any subordination created
under the Intercreditor Deed is or becomes unlawful, subject in each case to
applicable bankruptcy or insolvency laws or other similar laws affecting
creditors’ rights generally and general equitable principles and any other
reservations made in the Legal Opinions.

 

23.12                   Intercreditor Deed

 

(a)                                  Any party to the Intercreditor Deed
(other than a Finance Party and a Finance Party (as defined in each B Bridge
Facility Agreement)) fails to comply with the provisions of, or does not
perform its obligations under, the Intercreditor Deed; or

 

(b)                                 a representation or warranty given
by that party in the Intercreditor Deed is incorrect in any material respect,

 

and, if the non-compliance or circumstances giving
rise to the misrepresentation are capable of remedy, it is not remedied within
10 Business Days of the earlier of the Facility Agent giving notice to that
party or that party becoming aware of the non-compliance or misrepresentation.

 

23.13                   The Group’s Business

 

Any Obligor ceases to carry on business (save
pursuant to a Permitted Disposal or a transaction permitted by
Clause 22.10 (Mergers)).

 

23.14                   Material Adverse Change

 

Any event or circumstance occurs which would
reasonably be expected to have a Material Adverse Effect.

 

23.15                   Auditor’s Qualification

 

The Auditors of the Parent qualify their annual
audit report to the consolidated accounts of the Group in a manner which could
reasonably be expected to be materially adverse to the interests of the Banks
in the context of the Facilities.

 

23.16                   Acceleration and Cancellation

 

Upon the occurrence of an Event of Default and at
any time thereafter whilst the Event of Default is subsisting, the Facility
Agent may (and, if so instructed by an Instructing Group, shall) by notice to
the Parent:

 

190

 

(a)                                  declare all or any part of the
Advances to be immediately due and payable (whereupon the same shall become so
payable together with accrued interest thereon and any other sums then owed by
the Borrowers hereunder); and/or

 

(b)                                 declare all or any part of the
Advances to be due and payable on demand of the Facility Agent; and/or

 

(c)                                  require the C Borrowers to procure
that the liabilities of each of the Banks and the L/C Issuers under each Letter
of Credit are promptly reduced to zero and/or provide Cash Collateral for each
Letter of Credit in an amount specified by the Facility Agent (whereupon the
Borrowers shall do so); and/or

 

(d)                                 declare that any unutilised portion
of the Facilities shall be cancelled, whereupon the same shall be cancelled and
the Available Commitment of each Bank shall be reduced to zero.

 

23.17                   Non-material Subsidiaries

 

In the event that any of the circumstances described
in any of Clause 23.5 (Insolvency and
Rescheduling), Clause 23.6 (Winding-up),
Clause 23.9 (Governmental Intervention) or
Clause 23.11 (Unlawfulness and
Invalidity) occurs in relation to any subsidiary of the Parent which
is not an Obligor such circumstances shall not constitute an Event of Default
unless such circumstances shall have arisen in relation to one or more such
subsidiaries which in aggregate have more than 5 per cent. of EBITDA or net
assets or turnover of the Group, calculated on a consolidated basis.  Compliance with this condition shall be
determined by reference to the latest audited financial statements of the
relevant subsidiaries (consolidated in the case of an Obligor which itself has
subsidiaries) if audited accounts are prepared for such subsidiaries (or
unaudited accounts if they are not) and the latest audited consolidated
financial statements of the Group.

 

23.18                   Certain Funds Period

 

To ensure that Holdco or any relevant affiliate has
sufficient resources available to fulfil its obligations under the Acquisition
Agreement, during the Certain Funds Period (notwithstanding any provision in
this Agreement to the contrary) unless a Certain Funds Event of Default has
occurred and is continuing, none of the Finance Parties shall be entitled to:

 

(a)                                  cancel any of its Commitments under
the Facility;

 

(b)                                 rescind, terminate or cancel this
Agreement or the Facility;

 

(c)                                  require repayment of any Advance
under Facility;

 

(d)                                 refuse to participate in the making
of any Advance under the Facility; or

 

(e)                                  exercise any right of set-off or
counterclaim in respect of any Advance under the Facility;

 

provided that, immediately upon the expiry of the
Certain Funds Period, all such rights, remedies and entitlements shall be
available to the Finance Parties 

 

191

 

notwithstanding that they may not have been used or
been available for use during the Certain Funds Period.

 

23.19                   Advances Due on Demand

 

If, pursuant to Clause 23.16 (Acceleration and Cancellation), the Facility Agent declares
all or any part of the Advances to be due and payable on demand of the Facility
Agent, then, and at any time thereafter, the Facility Agent may (and, if so
instructed by an Instructing Group, shall) by notice to the Parent:

 

(a)                                  require repayment of all or such
part of the Advances or any other payment due hereunder on such date as it may
specify in such notice (whereupon the same shall become due and payable on the
date specified together with accrued interest thereon and any other sums then
owed by the Borrowers hereunder) or withdraw its declaration with effect from
such date as it may specify; and/or

 

(b)                                 select as the duration of any
Interest Period or Term of an Advance which begins whilst such declaration remains
in effect a period of six months or less.

 

23.20                   Exercise
of Sale Right

 

(a)                                  If any Event of Default shall occur
and be continuing, the Canadian Permitted Bank may, in its sole and absolute
discretion, exercise the Canadian Sale Right in relation to any Facility by
delivering a notice (a “Notice of Exercise of
Sale Right”) to the relevant Non-Canadian Banks; provided, that upon
the occurrence any Event of Default under Clauses 23.5 (Insolvency and Rescheduling) or 23.6 (Winding-up),
such Notice of Exercise of Sale Right shall be deemed given in relation to each
Facility under which a Canadian Advance has been made.  Upon issuance of such notice, the Canadian
Permitted Bank shall promptly give notice of the contents thereof to the
relevant Canadian Borrowers.  Each Notice
of Exercise of Sale Right shall automatically, without any further action on
the part of the Canadian Permitted Bank, the Non-Canadian Banks or any other
person, require the relevant Non-Canadian Banks to immediately and forthwith
purchase and assume from the Canadian Permitted Bank an undivided ownership
interest in the Canadian Outstandings and Commitments under the A1 Canadian
Dollar Tranche, the A2 Canadian Dollar Tranche and any A Swingline Facility in
an amount equal to the Non-Canadian Bank’s Canadian Pro-Rata Share of such
Canadian Outstandings, and Commitments. 
The purchase price to be paid by such Non-Canadian Bank for such
undivided ownership interest shall be an amount equal to the Non-Canadian
Bank’s Canadian Pro-Rata Share of the Canadian Outstandings held by the
Canadian Permitted Bank.  Each such
Non-Canadian Bank shall promptly transfer to the Canadian Permitted Bank, in
immediately available funds, the amount of such purchase price.

 

(b)                                 Each Non-Canadian Bank’s obligation
to purchase and assume the Canadian Outstandings and Commitments referred to in
this Clause 23.20 in respect of which a Canadian Sale Right has been
exercised shall be absolute and unconditional and shall not be affected by any
circumstances, including, without limitation, (i) any set-off,
counterclaim, recoupment, defense or other 

 

192

 

right which such Non-Canadian Bank or any Borrower may have against the
Canadian Permitted Bank or any Non-Canadian Bank or any other person for any
reason whatsoever, (ii) the occurrence or continuance of a Potential Event
of Default or an Event of Default, (iii) any adverse change in the
condition (financial or otherwise) of any Borrower, (iv) any breach of
this Agreement or any other Finance Document by an Obligor, any subsidiary of
the Parent or the Canadian Permitted Bank or any Non-Canadian Bank or (v) any
other circumstances, happening or event whatsoever, whether or not similar to
any of the foregoing.

 

(c)                                  The relevant Non-Canadian Banks’ pro
rata share of all payments of interest and principal, and any other amounts
required to be paid with respect to any Canadian Advances in relation to any
Facility accruing and received after the purchase of such Outstandings pursuant
to this Clause 23.20 shall be paid to such Non-Canadian Banks.

 

23.21                   U.S. Bankruptcy

 

Notwithstanding Clause 23.16 (Acceleration and Cancellation) upon the actual or deemed
entry of an order for relief under the U.S. Bankruptcy Code with respect to any
US Obligor, the Facilities shall cease to be available to such US Obligor and
all Advances outstanding to such US Obligor shall become immediately due and
payable.

 

23.22                   Clean-Up Period

 

For the period from the Closing Date until the
Clean-Up Date, if any event occurs which would, but for this Clause 23.22
have constituted an Event of Default under any of Clause 23.2 (Misrepresentation), Clause 23.3 (Obligations),
Clause 23.4 (Cross Default), Clause 23.7
(Execution or Distress) and
Clause 23.8 (Failure to comply with Final Judgement)
will not constitute an Event of Default if such event relates exclusively to
the Target Group if and for so long as the circumstances giving rise to the
relevant Event of Default:

 

(a)                                  do not have a Material Adverse
Effect; and

 

(b)                                 have not been procured by or
approved by the Parent,

 

and provided that if the relevant circumstances are
continuing after the Clean-Up Date there shall be an Event of Default.

 

24.                             GUARANTEE AND
INDEMNITY

 

24.1                         Guarantee and Indemnity

 

(a)                                  Subject to Clause 24.9 (French Guarantors) to Clause 24.19 (Other Guarantors) inclusive:

 

(i)                                     each Guarantor irrevocably and
unconditionally and jointly and severally:

 

(A)                              guarantees to each Finance Party the
due and punctual observance and performance of the terms, conditions and 

 

193

 

covenants
under this Agreement on the part of each Borrower or any Designated Obligor
(other than an Excluded Obligor) of the Guaranteed Liabilities, including the
payment of the Guaranteed Liabilities, and agrees to pay from time to time on
demand of the Facility Agent any and every sum or sums of money which is at any
time payable to any Finance Party in respect of the Guaranteed Liabilities; and

 

(B)                                agrees as a primary obligation to
indemnify each Finance Party from time to time on demand of the Facility Agent
from and against any loss incurred by any Finance Party as a result of any of
the obligations of any Borrower or any Designated Obligor (other than an
Excluded Obligor) under or pursuant to the Finance Documents being or becoming
void, voidable, unenforceable or ineffective as against such Borrower or
Designated Obligor for any reason whatsoever, whether or not known to any
Finance Party or any other person, the amount of such loss being the amount
which the person or persons suffering it would otherwise have been entitled to
recover from such Borrower or Designated Obligor; and

 

(ii)           Hertz (U.K.) Limited irrevocably and unconditionally and jointly and
severally:

 

(A)                              guarantees to BNP Paribas (and its
permitted successors and assigns) the due and punctual observance and
performance of the terms, conditions and covenants under the ISDA Master
Agreement, dated as of December 6, 2004, between Hertz Europe Limited and
BNP Paribas and any Confirmations (as defined therein) relating thereto from
time to time (including the Confirmations dated January 24, 2006) (the “HEL Swaps”) on the part of Hertz Europe
Limited of the HUKL Guaranteed Liabilities, including the payment of the HUKL
Guaranteed Liabilities, and agrees to pay from time to time on demand of the
Facility Agent or BNP Paribas any and every sum or sums of money which is at
any time payable to any Finance Party or BNP Paribas in respect of the HUKL
Guaranteed Liabilities; and

 

(B)                                agrees
as a primary obligation to indemnify BNP Paribas (and its permitted successors
and assigns) from time to time on demand of the Facility Agent or BNP Paribas
(and/or its permitted successors and assigns) from and against any loss
incurred by BNP Paribas (and/or its permitted successors and assigns) as a
result of any of the obligations of Hertz Europe Limited under or pursuant to
HEL Swaps being or becoming void, voidable, unenforceable or ineffective as
against Hertz Europe Limited for any reason whatsoever, whether or not known to
Hertz Europe Limited or any other person, the amount of such loss being the
amount which the person or persons suffering it would otherwise have been
entitled to recover from Hertz Europe Limited.

 

194

 

provided that, in each case, (i) no Guarantor
shall incur any liability under this Clause 24, in respect of the
obligations of any company of which it is a subsidiary or any loss incurred by
any Finance Party as a result of any such obligation being or becoming void,
voidable, unenforceable or ineffective as aforesaid, (ii) no Guarantor
shall incur any liability under this Clause 24, in respect of any
obligations of any Italian Borrower under any Italian Non-Guaranteed Tranche,
and (iii) no Guarantor (other than a Swiss Guarantor) shall incur any
liability under this Clause 24.1 in relation to any interest payment or
any repayment of principal payable by a Swiss Borrower under this Agreement in
excess of  the maximum  amounts of 
principal and interest permitted to be paid to related parties of a
Swiss Borrower pursuant to the Swiss Circulars.

 

(b)                                 For the purposes of this
Clause 24 (Guarantee and Indemnity):

 

(i)        (A)              “Guaranteed Liabilities”
means any and every sum or sums of money which any Borrower or Designated
Obligor other than an Excluded Obligor (other than Hertz UK Limited with
respect to HUKL Guaranteed Liabilities) is at any time liable to pay to any
Finance Party under or pursuant to the Finance Documents other than under the
Italian Non-Guaranteed Tranches or any of them and which has become due and
payable but has not been paid at the time the demand of payment thereof is
made.

 

(B)                                “HUKL Guaranteed Liabilities” means any and every sum or sums
of money which Hertz Europe Limited is at any time liable to pay to BNP Paribas
(and/or any of its successors and assigns) or any Finance Party under or
pursuant to the ISDA Master Agreement, dated as of December 6, 2004,
between Hertz Europe Limited and BNP Paribas and any Confirmations (as defined
therein) relating thereto from time to time (including the Confirmations dated January 24,
2006) and which has become due and payable but has not been paid at the time
the demand of payment thereof is made.

 

(ii)         “Original Excluded Obligors” means:

 

	
  (A)

  	
   

  	
  Hertz (U.K.) Limited (except
  with respect to HUKL Guaranteed Liabilities);

  
	
   

  	
   

  	
   

  
	
  (B)

  	
   

  	
  Hertz de España S.A.;

  
	
   

  	
   

  	
   

  
	
  (C)

  	
   

  	
  Hertz Alquiler de Maquinaria S.L.;

  
	
   

  	
   

  	
   

  
	
  (D)

  	
   

  	
  Stuurgroep
  Holland B.V.; and

  
	
   

  	
   

  	
   

  
	
  (E)

  	
   

  	
  Hertz Australia
  Pty. Limited.

  

 

 

(iii)        “Excluded Obligors” means the Original
Excluded Obligors and any other Designated Obligor or Additional Borrower which
the Facility 

 

195

 

Agent and the Parent agree in writing to
designate as such upon such person becoming an Designated Obligor or an
Additional Borrower as the case may be and “Excluded Obligor” means any one of
them.

 

(iv)       “Swiss Circulars” means (a) Circular
Letter Nr. 6 dated 6 June 1997, (b) Circular Letter dated 26 January 2005
with respect to the relevant interest rates applicable to loans granted in
Swiss francs, and (c) Circular Letter dated 14 February 2005 with
respect to the relevant interest rates applicable to loans granted in foreign
currencies each issued by the Swiss Federal Tax Administration and each as
amended from time to time.

 

24.2                           Additional Security

 

The obligations of each Guarantor herein contained
shall be in addition to and independent of every other security which any
Finance Party may at any time hold in respect of any Obligor’s obligations
under the Finance Documents.

 

24.3                           Continuing Obligations

 

The obligations of each Guarantor herein contained
shall constitute and be continuing obligations notwithstanding any settlement
of account or other matter or thing whatsoever and shall not be considered
satisfied by any intermediate payment or satisfaction of all or any of the
obligations of the Borrowers under the Finance Documents and shall continue in
full force and effect until final payment in full of all amounts owing by the
Borrowers thereunder and total satisfaction of all the Obligors’ actual and
contingent obligations under the Finance Documents.

 

24.4                           Obligations not Discharged

 

Neither the obligations of each Guarantor herein
contained nor the rights, powers and remedies conferred in respect of each
Guarantor upon any Finance Party by the Finance Documents or by law shall be
discharged, impaired or otherwise affected by:

 

(a)                                  the winding-up, dissolution,
administration or re-organisation or any analogous event in any Borrower’s
jurisdiction of incorporation of any Borrower or any other person or any change
in its status, function, control or ownership;

 

(b)                                 any of the obligations of the
Borrowers or any other person under the Finance Documents being or becoming
illegal, invalid, unenforceable or ineffective in any respect;

 

(c)                                  time or other indulgence being
granted or agreed to be granted to the Borrowers or any other Obligor in
respect of its obligations under the Finance Documents;

 

(d)                                 any amendment to, or any variation,
waiver or release of, any obligation of the Borrowers or any other Obligor
under the Finance Documents;

 

196

 

(e)                                  any failure to take, or fully to
take, any security contemplated hereby or otherwise agreed to be taken in
respect of the obligations of the Borrowers or any other Obligor under the
Finance Documents;

 

(f)                                    any failure to realise or fully to
realise the value of, or any release, discharge, exchange or substitution of,
any Security taken in respect of the obligations of the Borrowers or any other
Obligor under the Finance Documents; or

 

(g)                                 any other act, event or omission
which, but for this Clause 24.4 (Obligations not Discharged),
might operate to discharge, impair or otherwise affect any of the obligations
of each Guarantor herein contained or any of the rights, powers or remedies
conferred upon any of the Finance Parties by the Finance Documents or by law.

 

24.5                           Settlement Conditional

 

Any settlement or discharge between an Obligor and
any of the Finance Parties shall be conditional upon no Security or payment to
any Finance Party by an Obligor or any other person on behalf of an Obligor
being avoided or reduced by virtue of any laws relating to bankruptcy,
insolvency, liquidation or similar laws of general application and, if any such
Security or payment is so avoided or reduced, each Finance Party shall be
entitled to recover the value or amount of such Security or payment from such
Obligor subsequently as if such settlement or discharge had not occurred.

 

24.6                           Exercise of Rights

 

No Finance Party shall be obliged before exercising
any of the rights, powers or remedies conferred upon it in respect of any
Guarantor by the Finance Documents or by law to:

 

(a)                                  make any demand of any Obligor;

 

(b)                                 take any action or obtain judgment
in any court against any Obligor;

 

(c)                                  make or file any claim or proof in a
winding-up or dissolution of any Obligor; or

 

(d)                                 enforce or seek to enforce any other
Security taken in respect of any of the obligations of any Obligor under the
Finance Documents.

 

24.7         Deferral of Guarantor’s Rights

 

Each of the Guarantors agrees that, so long as any
amounts are or may be owed by the Borrowers under the Finance Documents or the
Borrowers are under any actual or contingent obligations under the Finance
Documents, such Guarantor shall not exercise any rights which it may at any
time have by reason of performance by it of its obligations under the Finance
Documents to:

 

(a)                                  be indemnified by any Borrower;
and/or

 

197

 

(b)                                 claim any contribution from any
other guarantor of the obligations of any Borrower under the Finance Documents;
and/or

 

(c)                                  take the benefit (in whole or in
part and whether by way of subrogation or otherwise) of any rights of the
Finance Parties under the Finance Documents.

 

24.8                           Suspense Accounts

 

All moneys received, recovered or realised by a
Finance Party by virtue of Clause 24 (Guarantee and Indemnity)
may, in that Finance Party’s reasonable discretion, be credited to a suspense
or impersonal account and may be held in such account for so long as such
Finance Party thinks fit pending the application from time to time (as such
Finance Party may think fit) of such moneys in or towards the payment and
discharge of any amounts owing by the Borrowers to such Finance Party under the
Finance Documents.

 

24.9                           French Guarantors

 

(a)                                  The obligations of each Guarantor
incorporated in France (a “French Guarantor”)
under this Clause 24 (Guarantee and Indemnity)
shall not extend to cover any amounts the guaranteeing of which would (i) breach
the prohibition of financial assistance as defined in article L.225-216 of the
French Commercial Code for the financing or refinancing of the acquisition of
the shares of such French Guarantor, or (ii) constitute a misuse of
corporate assets (abus de biens sociaux) of such
French Guarantor as defined in article L.242-3 and in article L.242-6 of the
French Commercial Code, in the case of either paragraph (i) or (ii),
or any other regulation to the same effect as interpreted from time to time by
French courts.

 

(b)                                 In order for the condition set out
in Clause 24.9(a)(ii) to be considered as satisfied based on current
French case law, the obligations of any French Guarantor under this
Clause 24 (Guarantee and Indemnity) shall be
limited to an amount not exceeding the lesser of:

 

(i)                                     an amount equal to the amount
borrowed by such French Guarantor as Borrower under this Agreement; or

 

(ii)                                  85% of the Net Asset Value of that
French Guarantor calculated and certified by the statutory auditors on the
basis of the last audited financial statements available at the date upon which
such French Guarantor accedes to this Agreement as a Guarantor or at the date
demand is made under this Clause 24 (Guarantee and Indemnity)
(whichever is the higher).

 

For the purposes of this Clause 24 (Guarantee and Indemnity), “Net Asset
Value” means the capitaux propres
(as defined in article 22 of the French Decree no. 83-1020 of 29 November 1983).

 

For the avoidance of doubt, it is acknowledged that
any French Guarantors or Guarantors are not acting jointly and severally and
are not between themselves, 

 

198

 

co-débiteurs solidaires as
to their obligations pursuant to the guarantees and indemnities given pursuant
to this Clause 24 (Guarantee and Indemnity).

 

24.10                     German Guarantors

 

(a)        (i)                                               Each Finance Party agrees that
its right to enforce any guarantee or indemnity granted by a Guarantor
incorporated or established in Germany which is constituted in the form of a GmbH
or a GmbH & Co. KG (a “Relevant German Obligor”)
shall, if and to the extent that such guarantee or indemnity secures
liabilities of any shareholder of such Relevant German Obligor or any such
shareholder’s affiliated company (verbundenes Unternehmen)
within the meaning of section 15 of the German Stock Corporation Act (Aktiengesetz) (other than such Relevant German Obligor’s
subsidiaries), at all times be limited to an amount equal to the Relevant
German Obligor’s, and, in the case of a GmbH & Co. KG, such Relevant
German Obligor’s general partner’s, net assets (as defined in
paragraph ‎(ii) below).

 

(ii)                                  For
the purposes of this Clause 24.10, net assets shall be calculated by
taking into account the captions reflected in section 266 (2) A, B and C
of the German Commercial Code (Handelsgesetzbuch)
less the sum of:

 

(A)                              the
Relevant German Obligor’s, or, in the case of a GmbH & Co. KG, such
Relevant German Obligor’s general partner’s, liabilities (the calculation of
which shall take into account the captions reflected in section 266 (3) B,
C and D of the German Commercial Code);

 

(B)                                the
registered share capital (Stammkapital)
of the Relevant German Obligor or, in the case of a GmbH & Co. KG,
such Relevant German Obligor’s general partner’s registered share capital; and

 

(C)                                the
amount of any intercompany loan or loans granted by the Relevant German Obligor
to its parent or sister companies.

 

(iii)                               For
the purpose of the calculation of the enforceable amount, the Relevant German
Obligor, or in the case of a GmbH & Co. KG, such Relevant German
Obligor’s general partner will, within 30 (thirty) Business Days after the
Facility Agent has made a demand for payment under the guarantee or indemnity
pursuant to Clause 24 (Guarantee and Indemnity),
deliver to the Facility Agent an unaudited up-to-date balance sheet of the
Relevant German Obligor, and, in the case of a GmbH & Co. KG, such
Relevant German Obligor’s general partner, drawn up by its auditors, which
shows the value of the net assets.  The
balance sheet and determination of net assets shall be prepared in accordance
with accounting principles pursuant to the German Commercial Code (Handelsgesetzbuch) and be based on the same principles that
were applied when establishing the immediately preceding year’s balance sheet.

 

199

 

(iv)                              If
the Relevant German Obligor fails to deliver a copy of its balance sheet or, in
the case of a GmbH & Co. KG, such Relevant German Obligor’s general
partner’s balance sheet, in accordance with paragraph ‎(iii), the
Facility Agent shall be entitled to enforce the guarantee or indemnity without
limitation.  Following such enforcement,
the Facility Agent agrees to release proceeds from the enforcement of the
guarantee or indemnity if and to the extent that it is a guarantee or indemnity
which secures liabilities of any shareholder of such Relevant German Obligor or
any such shareholder’s affiliated company (verbundenes Unternehmen)
within the meaning of section 15 of the German Stock Corporation Act
(other than such Relevant German Obligor’s subsidiaries) and that such
enforcement or the application of proceeds from such enforcement towards the
secured obligations would otherwise lead to the situation that the Relevant
German Obligor, or, in the case of a GmbH & Co. KG, such Relevant
German Obligor’s general partner, would not have sufficient net assets, as
determined in accordance with a balance sheet drawn up as foreseen under the
paragraph (iii) above, to maintain its registered share capital (Stammkapital).

 

(v)                                 For
the purposes of the calculation of the enforceable amount specified in
paragraph (ii) above and the amount to be released specified in
paragraph (ii) above, the following balance sheet items shall be
adjusted as follows:

 

(A)                              the
amount of any increase of registered share capital out of retained earnings (Kapitalerhöhung aus Gesellschaftsmitteln) and, in the case
of a GmbH & Co. KG, the registered share capital of the general
partner after the Closing Date that has been effected without the prior written
consent of the Facility Agent shall be deducted from the registered share
capital and, in the case of GmbH & Co. KG, the deduction shall take
place from the registered share capital of the general partner; and

 

(B)                                loans
and other contractual obligations incurred in violation of the provisions of
the Finance Documents to which the Relevant German Obligor is a party, shall be
disregarded.

 

(vi)                              Furthermore,
if and to the extent legally permissible each such Relevant German Obligor, or,
in the case of a GmbH & Co. KG, such Relevant German Obligor’s general
partner, shall, in a situation where it does not have sufficient net assets to
maintain its registered share capital and where a Finance Party would (but for
this Clause 24.10) be entitled and is seeking to enforce the guarantee or
indemnity pursuant to Clause 24 (Guarantee and Indemnity),
realise any and all of its assets that are shown in the balance sheet with a
book value (Buchwert) which is significantly lower
than the realisable market value of such assets and to the extent such assets
are not necessary for the Relevant German Obligor’s, or, in the case of a GmbH &
Co. KG, such Relevant German Obligor’s general partner’s, business or
operations (nicht betriebsnotwendig).

 

200

 

(vii)                           The
limitations set out in this Clause 24.10 shall not apply to a guarantee or
indemnity granted by a Relevant German Obligor in relation to any amounts
borrowed under this Agreement to the extent the proceeds of such borrowing are
on-lent to it or any of its subsidiaries from time to time and have not been
repaid at the time of the enforcement of the guarantee or indemnity.

 

(b)                                 Any guarantee or indemnity shall
further not be enforced to the extent that the Relevant German Obligor or, in
the case of a GmbH & Co. KG, such Relevant German Obligor’s general
partner, demonstrates in reasonable detail that such enforcement would lead to
a breach of the duty of care owing by the relevant shareholders vis-à-vis the
respective company (Gebot der Rücksichtnahme
auf die Eigenbelange der Gesellschaft) and of the prohibition of
insolvency-causing intervention (Verbot des
existenzvernichtenden Eingriffs), as developed by the recent
jurisdiction (in particular BGH II ZR 178/99 Bremer “Vulkan”, BGH ZR 196/00 and
BGH II ZR 300/00 “KBV”), of the Federal Supreme Court (Bundesgerichtshof),
caused for example, as far as this would be within the scope of the cited court
rulings, if the entering into the guarantee or indemnity and its enforcement
results in the illiquidity (Zahlungsunfähigkeit)
of the Relevant German Obligor or, in the case of a GmbH & Co. KG,
such Relevant German Obligor’s general partner. 
The Facility Agent shall be obliged to retransfer proceeds from such enforcement
to the extent that the Relevant German Obligor demonstrates in reasonable
detail that the enforcement of this Agreement violated the rules of the
cited Federal Supreme Court rulings.  Any
claim for damages (excluding, for the avoidance of doubt, any claim relating to
unjust enrichment) by the relevant German Obligor or the Borrowers against the
Banks, the Facility Agent, the Global Coordinator and/or the Arrangers and
Joint Bookrunners in connection with a potential existence threatening intrusion
shall be excluded.

 

(c)                                  The Facility Agent shall be obliged
to retransfer proceeds from such enforcement if any of the guarantee or
indemnity has been enforced even though the enforcement was excluded in
accordance with this paragraph (c).

 

24.11       Belgian Guarantors

 

Notwithstanding any other provision of this
Agreement, the amount payable or enforceable under or pursuant to
Clause 24 (Guarantee and Indemnity) by or
against any Guarantor incorporated in Belgium (a “Belgian
Guarantor”) shall not include any liability which would constitute
unlawful financial assistance (as determined in Article 629 of the Belgian
Company Code). Further, the maximum amount payable or enforceable under or
pursuant to Clause 24 (Guarantee and Indemnity)
by or against any Belgian Guarantor shall in all circumstances be limited to an
amount equal to the greater of the following amounts:

 

(a)                                  any amounts (principal plus accrued
interest thereon, commissions, costs and fees) directly or indirectly made
available to the Belgian Guarantor under this Agreement and which have not yet
been repaid by the Belgian Guarantor at the time of the enforcement of the
guarantee under Clause 24 (Guarantee and Indemnity)
or of the relevant Security Document; or

 

201

 

(b)                                 90 per cent. of the Net Assets (as
defined below) of the Belgian Guarantor calculated and certified by the
statutory auditors of the Belgian Guarantor on the basis of the Latest Accounts
available at the time of the enforcement of the guarantee under Clause 24
(Guarantee and Indemnity) or of the
relevant Security Document.

 

(c)                                  For the purposes of this
Clause 24.11 “Net Assets” of
the Belgian Guarantor shall have the meaning defined in Article 617 of the
Belgian Company Code,

 

it being understood that, for the purpose of this
Clause 24.11, in the event that a Belgian Guarantor makes a repayment in
its capacity as Borrower under the Finance Documents, the guarantee of such
Belgian Guarantor under Clause 24 will be reduced pro rata, without however
being lower than 90% of its Net Assets.

 

24.12                     UK Guarantors

 

The guarantee granted by any Guarantor incorporated
under the laws of England and Wales under or pursuant to Clause 24.1 (Guarantee and Indemnity) shall not apply to any liability to
the extent that it would result in the relevant guarantee constituting unlawful
financial assistance within the meaning of Section 151 of the Companies
Act 1985.

 

24.13                     Australian Guarantors

 

The guarantee granted by any Guarantor incorporated
under the laws of the Commonwealth of Australia under or pursuant to
Clause 24 (Guarantee and Indemnity) shall
not apply to any liability to the extent that it would result in the relevant
guarantee constituting financial assistance which was not exempted or approved
under sections 260A, 260B and 260C of the Australian Corporations Act 2001
(Cth).

 

24.14                     Italian Guarantors

 

(a)                                  Notwithstanding
the foregoing and anything to the contrary in the Finance Documents, the
obligations under the guarantee and the indemnity granted under
Clause 24.1 (Guarantee and Indemnity) by any
Guarantor incorporated under the laws of Italy (an “Italian Guarantor”) shall not extend to:

 

(i)                                     cover
any amounts the guaranteeing or indemnification of which would breach the
prohibition of financial assistance as defined in Article 2358 of the
Italian Civil Code for the financing or refinancing of the acquisition of the
shares of such Italian Guarantor;

 

(ii)                                  cover
any amounts the guaranteeing or indemnification of which would constitute an
unfaithful behaviour of the directors or general managers of the Italian
Guarantor under Article 2634 of the Italian Civil Code (infedeltà patrimoniale) or expose the
directors of the Italian Guarantor to liability under article 2392 of the
Italian Civil Code (responsabilità verso la
società); and

 

202

 

(iii)                               guarantee
and indemnify any obligations of any person which are incurred for the purpose
of the Acquisition or for the acquisition of Target and of its Group.

 

(b)                                 Notwithstanding
the foregoing and anything to the contrary in the Finance Documents, but
subject to paragraph (a) above, Italian Opco shall guarantee and
indemnify only (A) the obligation of Italian Fleetco as borrower under the
Finance Documents (except for any obligation under the Italian Non-Guaranteed
Tranches) and (B) the obligations of any Borrower (other than Italian
Fleetco) under the Finance Documents as borrower, provided that the obligations
of Italian Opco under this Clause 24.1 (Guarantee
and Indemnity) shall not exceed an amount in EUR equal to the net
worth (patrimonio netto) of
Italian Fleetco  at the time of
enforcement by the Finance Parties of the guarantee and indemnity under this
Clause 24.1 (Guarantee and Indemnity) and, in
any event, shall not exceed an amount equal to EUR 200.000.000.

 

(c)                                  Subject
to paragraph (a) above, other Italian Guarantors, if any, will be
liable towards the Finance Parties exclusively up to the aggregate amount of
EUR indicated in the relevant Accession Memorandum, also taking into account
any relevant corporate benefit of such Italian Guarantor.

 

24.15                     Spanish Guarantors

 

Any guarantee, indemnity, obligation and liability
granted or assumed pursuant to Clause 24 (Guarantee
and Indemnity) and any Security constituted by or arising under any
Security Document granted in accordance with the terms set out in
Schedule 18 (Security Principles) by any
Guarantor incorporated in Spain shall not extend to any obligation:

 

(a)                                  to the extent that such guarantee,
indemnity, obligation, liability or Security would constitute unlawful
financial assistance within the meaning of Article 81 of Royal Legislative
Decree 1564/1989 dated 22 December on Open Limited Liability Companies (Real Decreto Legislativo 1564/1989, de 22 de diciembre, por el que se
aprueba el Texto Refundido de la Ley de Sociedades Anónimas) or Article 40.5
of Spanish Law 2/1995 dated 23 March on Closed Limited Liability Companies
(Lev 2/1995, de 23 de marzo, de Sociedades de
Responsabilidad Limitada);

 

(b)                                 in the case of a Guarantor
incorporated in Spain as a Closed Limited Liability Company, in respect of any
issuance of notes, bonds or any other negotiable securities within the meaning
of Article 9 of Spanish Law 2/1995 dated 23 March on Closed
Limited Liability Companies (Ley 2/1995, de 23 de
marzo, de Sociedades de Responsabilidad Limitada); or

 

(c)                                  to the extent that such guarantee,
indemnity, obligation, liability or Security would not be in the corporate
benefit (either direct or indirect) of the Guarantor.

 

203

 

24.16                     Swiss Guarantors

 

(a)                                  If and to the extent that the
obligations of each Guarantor incorporated under the laws of Switzerland (the “Swiss Guarantor”) under this Clause 24
(Guarantee and Indemnity) are for
the exclusive benefit of any of such Swiss Guarantor’s affiliates (other than
such Swiss Guarantor’s direct or indirect subsidiaries):

 

(i)                                     the aggregate obligations of any
Swiss Guarantor under the Swiss Guarantee shall be limited to the Swiss
Available Amount at the time any Swiss Guarantor makes a payment under this
Clause 24 (Guarantee and Indemnity)
(provided such limitation is still a legal requirement under Swiss law at that
time). If and to the extent a Swiss Guarantor, when requested to make any
payment under the Swiss Guarantee, has one or more outstanding inter-company
loans (except for inter-company loans extended to its own direct or indirect
subsidiaries), such inter-company loan(s), including any accrued interest
thereon, shall be deducted from the Swiss Available Amount, provided that the
Facility Agent has approved such inter company loan when entered into, it being
understood that the Facility Agent herewith approves the inter-company loan to
Hertz Finance Centre plc which the Swiss Borrower shall grant on the Closing
Date;

 

(ii)                                  immediately after having been
requested to make a Swiss Guarantee Payment, each Swiss Guarantor shall (i) provide
the Facility Agent, within 30 Business Days from being requested to make the
Swiss Guarantee Payment, with (1) an interim audited balance sheet prepared
by the statutory auditors of the applicable Swiss Guarantor, (2) the
determination of the Swiss Available Amount based on such interim audited
balance sheet as computed by the statutory auditors and (3) a confirmation
from the statutory auditors that the Swiss Available Amount is the maximum
amount which can be paid by the Swiss Guarantor under the Swiss Guarantee
without breaching the provisions of Swiss corporate law, which are aimed at
protecting the share capital and legal reserves, and (ii) upon receipt of
the confirmation referred to in the preceding sentence under (3) and after
having taken all actions required pursuant to paragraph (d) below,
pay, subject to paragraph (c) below, the lesser of (A) such
Swiss Guarantee Payment in full (which shall include any gross-up or other
indemnification payment to the extent provided in paragraph (c) below)
and (B) the Swiss Available Amount (less, to the extent required, any
withholding tax under the Swiss Federal Act on Withholding Tax of October 13,
1965 (the “Swiss Withholding Tax”));

 

(iii)                               if so required under Swiss law
(including double tax treaties to which Switzerland is a party) at the time it
is required to make a payment under the Swiss Guarantee, the applicable Swiss
Guarantor (1) may deduct, in its sole discretion, the Swiss Withholding
Tax at the rate of 35 per cent. (or such other rate as may be in force at such
time) from any payment under the Swiss Guarantee, (2) may pay the Swiss
Withholding Tax to the Swiss Federal Tax Administration and (3) shall

 

204

 

notify and provide evidence to the Facility Agent that the Swiss
Withholding Tax has been paid to the Swiss Federal Tax Administration.  To the extent the Swiss Guarantee Payment due
is less than the Swiss Available Amount, the applicable Swiss Guarantor shall
be required to gross-up, indemnify or otherwise hold harmless the Finance
Parties for the deduction of the Swiss Withholding Tax, it being understood
that at no time shall the Swiss Guarantee Payment (including any gross-up or
indemnification payment pursuant to this paragraph (c) and including
any Swiss Withholding Tax levied thereon) exceed the Swiss Available
Amount.  To the extent the Swiss
Guarantee Payment exceeds the Swiss Available Amount, Clause 14.1 (Tax Gross-up) shall not be applicable.  The applicable Swiss Guarantor shall use its
best efforts to ensure that any person which is, as a result of a payment under
the Swiss Guarantee, entitled to a full or partial refund of the Swiss
Withholding Tax, shall as soon as possible after the deduction of the Swiss
Withholding Tax (i) request a refund of the Swiss Withholding Tax under
any applicable law (including double tax treaties) and (ii) pay to the
Finance Parties upon receipt any amount so refunded.  The obligations under the Finance Documents
will only be considered as discharged to the extent of the effective payment
received by the Finance Parties under the Swiss Guarantee.  This subsection (c) is without prejudice
to the gross-up or indemnification obligations of any Guarantor other that the
Swiss Guarantors; and

 

(iv)                              each Swiss Guarantor shall use
reasonable efforts to take and cause to be taken all and any other action,
including the passing of any shareholders’ resolutions to approve any Swiss
Guarantee Payment under the Swiss Guarantee, which may be required as a matter
of Swiss mandatory law or standard business practice as existing at the time it
is required to make a Swiss Guarantee Payment under the Swiss Guarantee in order
to allow for a prompt payment of the Swiss Guarantee Payment or Swiss Available
Amount, as applicable, it being understood that in the event where the Swiss
Guarantor demonstrates in reasonable detail that such payment would result in
the Swiss Guarantor being unable to meet all of its other current obligations
as they come due (technical insolvency), the Security Agent will differ the
enforcement of the Swiss Guarantee Payment or Swiss Available Amount until such
time when the Swiss Guarantor is in a position to pay such amount without
becoming technically insolvent. The decision of the Security Agent to defer the
enforcement of the Swiss Guarantee Payment or the Swiss Available Amount, as
applicable, is without prejudice to the Swiss Guarantor’s obligation to take
all necessary action to promptly render such payment possible without
simultaneously bringing the Swiss Guarantor in a state of technical insolvency.

 

205

 

(b)                                 For the purposes of this
Clause 24.16:

 

(i)                           “Swiss
Guarantee” means any guarantee given by a Swiss Guarantor under
Clause 24.16 (Guarantee and Indemnity).

 

(ii)                        “Swiss
Guarantee Payment” means a payment which a Swiss Guarantor has been
requested to make under the Swiss Guarantee.

 

(iii)                     Swiss Available Amount” means the maximum amount of a
Swiss Guarantor’s profits and reserves available for distribution, in each case
in accordance with, without limitation, articles 671 para. 1 to 3 and 675 para.
2 of the Swiss Code of Obligations.

 

 

24.17                   Dutch Guarantors

 

The obligations of any Guarantor incorporated under
the laws of The Netherlands under or pursuant to Clause 24 (Guarantee and Indemnity) shall exclude and shall not be or
be construed as any guarantee, indemnity or security, to the extent that this
would:

 

(a)                                  constitute unlawful financial
assistance within the meaning of Article 2:98c or 2:207c of The
Netherlands Civil Code, as relevant; or

 

(b)                                 be deemed “ultra vires”
within the meaning of Article 2:7 of The Netherlands Civil Code.

 

24.18                   German Confirmation

 

(a)                                  For the purposes of providing
evidence to the German tax authorities of the absence of any detrimental
recourse situation in connection with the tax circulars issued by the German
Federal Ministry of Finance (Bundesfinanzministerium)
on 15 July 2004 (IV A2 – S2742a – 20/04) and on 22 July 2005 (IV B7 –
S2742a – 31/05) in relation to section 8a of the German Corporation Tax Act,
the Security Agent agrees (for itself and on behalf of the Banks) to deliver to
the Parent (for itself and on behalf of the other Borrowers) no later than 30
Business Days after the Closing Date, in each case, without prior request by
the Borrowers, no later than 30 Business Days after this underlying Agreement
or the security granted under or in connection therewith have been altered or
amended, and, in any event, on each anniversary of the Closing Date (or, if
such anniversary date is not a Business Day, on the next succeeding Business
Day), a Bank Certificate.

 

(b)                                 The delivery of a Bank Certificate
shall not prejudice the rights of the Security Agent or the Banks under this
Agreement or any other Finance Document.

 

(c)                                  Any Bank Certificate delivered under
this Agreement: (i) is given for the purpose of delivery to the competent
tax authorities of the Borrowers to assist the Borrowers in the administration
of their tax affairs and not for any other purpose, (ii) does not
guarantee the achievement of a specific result or conclusion for German tax
purposes, (iii) is addressed to and is solely for the

 

206

 

benefit of the Borrowers in relation to this Agreement and (iv) does
not create third party rights of any kind.

 

(d)                                 Neither the Security Agent nor any
Bank shall be liable as a result of the delivery of a Bank Certificate.  No error or omission in a Bank Certificate
shall constitute a release of any Security Interest.

 

(e)                                  The Security Agent and the Banks
agree (at the cost of Parent) to provide any additional information in relation
to the security granted under or in connection with this Agreement (available
to the Security Agent or such Bank) reasonably requested by a Borrower for the
purposes of the completion by that Borrower of its submissions to any tax
authority asserting jurisdiction over it as soon as reasonably practicable
following such request.

 

(f)                                    If, after the Closing Date, the
German tax administration requires submission of a standard form of the purpose
of providing evidence to the German tax authorities of the absence of any
detrimental recourse situation or the Parent determines on the basis of a
specific request of a German tax inspector or a published decree of the German
tax administration with respect to section 8a German Corporation Tax Act that
the German tax authorities require an amended bank certificate, then the
Security Agent and each Bank agree to use such form instead of the Bank
Certificate as set out in Schedule 19 (Form of Bank
Certificate) provided, however, that the acceptance of such standard
form shall be subject to the approval of the Security Agent and the relevant
bank (as the case may be) (such consent not to be unreasonably withheld or
delayed), if such standard form differs substantially from the form of Bank
Certificate set out in Schedule 19 (Form of Bank
Certificate).

 

For the avoidance of doubt:

 

(i)                                     None of the Security Agent nor any
Bank shall be obliged to disclose to any other person any confidential
information regarding its business or any other information relating to its tax
affairs or tax computations (including, without limitation, its tax returns or
its calculations) as a result of the operation of this Clause 24.18.

 

(ii)                                  None of the Security Agent nor any
Bank shall be obliged to deliver any information pursuant to a request under
this Clause 24.18 if, by doing so, it would contravene the terms of any
applicable law or any notice, direction or requirement or any governmental or
regulatory authority (whether or not having the force of law).  The Borrowers may disclose the existence and
content of a Bank Certificate to its professional advisers, its respective
affiliates, as required by applicable law or regulate and to any tax,
regulatory or other governmental authority asserting jurisdiction over it.

 

(g)                                 For the purposes of this
Clause 24.18, a “Bank Certificate”
means a duly completed bank certificate 
in the form set out in Part 1 of Schedule 19 (Form of Bank Certificate).

 

207

 

24.19                   Other Guarantors

 

(a)                                  In relation to any member of the
Group or other person which becomes a Guarantor after the date of this
Agreement, the obligations of such Additional Guarantor under this
Clause 24 (Guarantee and Indemnity) are
subject to any limitation set out in the Guarantor Accession Memorandum
applicable to that Guarantor.

 

(b)                                 If,
after the Closing Date, there is a change in US tax law, regulation or
administrative practice the result of which is that the obligations of the
Parent under Clause 24.1 (Guarantee and Indemnity)
create a material risk that the earnings and profits of any or all of the
non-US subsidiaries of the Parent must be included in income by the Parent or
the US federal consolidated tax group which includes the Parent or the Target
as a member pursuant to Section 956 of the Internal Revenue Code and the
regulations thereunder, the Parent shall use its commercially reasonable
efforts to mitigate such risk, provided that, if such risk cannot be so
mitigated, the Facility Agent shall consent to modify or extinguish the
obligations of the Parent under Clause 24.1 (Guarantee
and Indemnity) to the extent necessary (and only to such extent) to
give effect to such changes thereto as may be necessary to eliminate such risk
or make it immaterial.

 

25.                               COMMITMENT
COMMISSION AND FEES

 

25.1                           Commitment Commission

 

(a)                                  The Parent shall pay or procure
payment (to the extent not already paid) to the Facility Agent for account of
each Bank of a commitment commission on the amount of such Bank’s Available
Commitment in relation to each Facility from day-to-day commencing on the
Closing Date and ending on the last day of the Availability Period in relation
thereto, such commitment commission to be calculated at the rate of:

 

(i)                                     0.35 per cent. per annum in relation
to the A1 Facility;

 

(ii)                                  0.40 per cent. per annum in relation
to the A2 Facility; and

 

(iii)                               0.50 per cent. per annum, in
relation to the C Facility,

 

provided that if, by and
with effect from the date that is 15 months after the Closing Date to (but
excluding) the date that is 24 months after the Closing Date:

 

(A)                              the
A1 Canadian Dollar Tranche and the A2 Canadian Dollar Tranche have not been
repaid in full and the Commitments of the Banks in relation thereto cancelled
in full, the commitment commission payable on each Bank’s Available Commitment
in relation to:

 

(1)                                  the
A1 Canadian Dollar Tranche shall be 0.50 per cent per annum; and

 

208

 

(2)                                  the
A2 Canadian Dollar Tranche shall be 0.55 per cent per annum,

 

provided further that if
on or before March 21, 2007 Hertz International has delivered to the
Facility Agent a duly executed copy of a commitment letter from the Bank of
Montreal in relation to, inter alia, the
refinancing in their entirety of both the A1 Canadian Dollar Tranche and the A2
Canadian Dollar Tranche, which letter shall be in form and substance
satisfactory to the Facility Agent (acting upon the instructions of the
Arrangers), the commitment commission as set out in paragraphs (1) and
(2) above shall only accrue from (and including) 1 July 2007; and

 

(B)                                the
A1 Belgian Euro Amount and the A2 Belgian Euro Amount have not been repaid in
full and the Commitments of the Banks in relation thereto cancelled in full,
the commitment commission payable in relation to:

 

(1)                                  the
A1 Belgian Allocation shall be 0.50 per cent per annum; and

 

(2)                                  the
A2 Belgian Allocation shall be 0.55 per cent per annum.

 

For the avoidance of doubt, save as set out in this
proviso, until the date that is 24 months after the Closing Date, the
commitment commission shall accrue as set out in paragraphs (a)(i) to
(iii) (inclusive) above, and

 

provided further that if,
by and with effect from the date that is 24 months after the Closing Date:

 

(I)                                    the
A1 Outstandings have not been repaid in full and the Commitments of the Banks
in relation to the A1 Facility cancelled in full, the commitment commission
payable in respect of the A1 Facility shall be automatically increased to 0.50
per cent. per annum; and

 

(II)                                if
the A2 Outstandings have not been repaid in full and the Commitments of the Banks
in relation to the A2 Facility cancelled in full, the commitment commission
payable in respect of the A2 Facility shall be automatically increased to 0.55
per cent. per annum.

 

For the purposes of this
paragraph (a) of Clause 25.1:

 

“A1 Belgian Allocation” means 7/8 of the Relevant Belgian Commitment;

 

“A1 Belgian Euro Amount” means an amount of
the A1 Euro Tranche equal to €21,000,000 which is utilised by or may pursuant
to the terms of this

 

209

 

Agreement be
utilised by any Belgian Borrower or any other Borrower which owns all or any
part of the A Core Country Fleet located in Belgium.

 

“A2 Belgian Euro Amount” means an amount of
the A2 Euro Tranche equal to €3,000,000 which is utilised by or may pursuant to
the terms of this Agreement be utilised by any Belgian Borrower or any other
Borrower which owns all or any part of the A Core Country Fleet located in
Belgium.

 

“A2 Belgian Allocation”  means
one-eighth of the Relevant Belgian Commitment; and

 

“Relevant Belgian Commitment” means:

 

(a)                                  if the difference between (i) the aggregate A1 and A2 Outstandings
of all Borrowers under the A1 Euro Tranche and the A2 Euro Tranche is equal to
or greater than the difference between (x) the aggregrate Commitments in
respect of the A1 Euro Tranche and the A2 Euro Tranche and (y) €24,000,000
and (ii) the aggregate A1 and A2 Outstandings of all Belgian Borrowers,
the aggregate Available Commitments of each Bank in respect of the A1 Euro
Tranche and the A2 Euro Tranche up to a maximum aggregate amount of
€24,000,000; and

 

(b)                                 if the difference between (i) the aggregate A1 and A2 Outstandings
of all Borrowers under the A1 Euro Tranche and the A2 Euro Tranche is less than
the difference between (x) the aggregrate Commitments in respect of the A1
Euro Tranche and the A2 Euro Tranche and (y) €24,000,000 (ii) the
aggregate A1 and A2  Outstandings of all
Belgian Borrowers, an amount equal to the difference between €24,000,000 and
the aggregate A1 and A2 Outstandings of all Belgian Borrowers.

 

(b)                                 Commitment commission payable
hereunder shall be payable in arrears in the relevant Designated Currency on (i) in
the case of any Facility, monthly on the Settlement Date immediately succeeding
each Second Calculation Date and (ii) on the Final Maturity Date, provided
that if the Facility Agent has not provided the related statement required in
paragraph (c) below at least 3 Business Days prior to such date, such
commitment commission shall be payable on the third Business Day after such
statement is provided.

 

(c)                                  The Facility Agent shall inform the
Coordinator in writing of the amount of commitment commission payable in the
relevant Designated Currency by the Parent in respect of each Tranche pursuant
to paragraph (a) or (b) above not later than 3 Business Days
before such commitment commission is due, provided that any failure by the
Facility Agent to make the calculations or provide the information under this
Clause 25.1(b) shall not affect any obligation of any Obligor under
the Finance Documents.

 

(d)                                 For the purposes of allocating the
obligation to pay commitment commission under this Clause 25.1 among the
Borrowers, the Coordinator (for and on behalf of each Obligor) may, prior to
the relevant date for payment of the commitment commission pursuant to
paragraph (b) above, deliver to the

 

210

 

Facility Agent a schedule specifying the allocation percentages for
each Borrower applicable to such commitment commission (such allocation to
equal an aggregate percentage of 100%).

 

25.2                           Fees

 

The Parent shall pay or cause to be paid (to the
extent not already paid) to the Facility Agent for its own account each of the
fees specified in the Fee Letters at the times, and in the amounts, specified
in such letter.

 

26.                               CANADIAN
PERMITTED BANK FEES

 

(a)                                  In consideration for the purchase by
the Canadian Permitted Bank from each Non-Canadian Bank of a Canadian Sale
Right in respect of a Facility, the Canadian Permitted Bank agrees to pay each
Non-Canadian Bank, as and when the Canadian Permitted Bank receives payment of interest
on its Canadian Advances, a Standby Fee on the Non-Canadian Bank’s Canadian
Pro-Rata Share of such Canadian Advances made by the Canadian Permitted
Bank.  The Standby Fee in respect of any
Non-Canadian Bank’s Pro-Rata Share in the Canadian Advance shall be payable to
the Non-Canadian Bank when interest on such Canadian Advance is received by the
Canadian Permitted Bank.  If the Canadian
Permitted Bank does not receive payment in full of such interest, the Standby
Fee in respect of the Non-Canadian Bank’s Pro-Rata Share in such Canadian
Advance shall be reduced proportionately. 
If a Canadian Borrower pays less than all of the interest then due and
owing by it for any period, that portion of the interest equating to the
Standby Fee shall be deemed to be the last portion of interest paid or to be
paid.

 

(b)                                 The Canadian Borrower agrees that
any payments made by the Canadian Permitted Bank to a Non-Canadian Bank
pursuant to this Clause 26 will be subject to deduction or withholding for
or on account of Relevant Tax and that the Canadian Borrower shall pay and
reimburse the Canadian Permitted Bank (and, upon receipt thereof, Canadian
Permitted Bank shall pay to the Non-Canadian Bank as an additional Standby Fee)
an amount equal to such additional amount or amounts that the Canadian
Permitted Bank would have to pay to each Non-Canadian Bank to ensure that each
such Non-Canadian Bank receives an amount net of any deduction or withholding
for any Relevant Tax (including deductions or withholdings applicable to any
additional amounts paid under this Clause 26) equal to the sum which the
Non-Canadian Bank would have received had no such deduction or withholding been
made or required to be made.  If the
Canadian Permitted Bank or a Non-Canadian Bank is required to make any payment
of or on account of any Relevant Tax on or in relation to any amount received
or receivable under this Clause 26 or if any liability in respect of any
such payment is asserted, imposed, levied or assessed against the Canadian
Permitted Bank or any Non-Canadian Bank with respect to any amounts paid by
Canadian Permitted Bank to a Non-Canadian Bank as contemplated hereunder, the
Canadian Permitted Bank or Non-Canadian Bank, as applicable, may pay such
Relevant Taxes and the Canadian Borrower shall, upon demand of the Facility
Agent, promptly indemnify and pay such additional amount or amounts (including
any penalty, interest, cost or expense payable or incurred in connection
therewith) as is

 

211

 

necessary to ensure that such Canadian Permitted Bank or Non-Canadian
Bank, as applicable, receives an amount net of any such Relevant Taxes
(including Relevant Taxes applicable to any such additional amounts) equal to
the sum which the Canadian Permitted Bank or Non-Canadian Bank, as applicable,
would have received had no such deduction or withholding for any such Relevant
Taxes been made or required to have been made. 
Notwithstanding any of the foregoing, a Non-Canadian Bank shall not be
entitled to receive any amount under this Section: to the extent it is not
eligible for the benefit of a Double Taxation Treaty otherwise than by reason
of any change after the Closing Date in law or in its interpretation or
administration (including, without limitation, the introduction of legislation,
any change in judicial interpretation, any change in an applicable Double
Taxation Treaty or any change in the published practice of a relevant tax
authority) in respect of the amount of any Standby Fee; to the extent that it
does not comply with any formalities required for eligibility under such Double
Taxation Treaty (including without limitation completing and submitting any
form or other document required for the purpose of ensuring the application of
a Double Taxation Treaty or applicable tax laws or regulations); to the extent
it provides any advances to the Canadian Permitted Bank prior to the Notice of
Exercise of Sale Right which are connected to the Facility; to the extent that
any Relevant Tax, interest, penalties, costs or expenses of a Finance Party
which would not have arisen or been incurred but for the reasonably avoidable
delay or the default of such Finance Party; or to the extent it is compensated
for by an increased payment under Clause 14.1 (Tax Gross-up),
or Clause 14.2 (Tax Indemnity).

 

A Bank intending to make a claim pursuant to this
Clause 26 (Canadian Permitted Bank Fees)
shall provide a certificate to the Facility Agent regarding the applicable
Double Taxation Treaty whereupon the Facility Agent shall notify the Parent
thereof.

 

If, and to the extent that, the effect of
Clause 26 (Canadian Permitted Bank Fees) can
be mitigated by virtue of the provisions of any applicable Double Taxation
Treaty or any applicable tax law (whether by a claim to repayment of any taxes
referred to in Clause 26 (Canadian Permitted Bank
Fees) or otherwise) the relevant Finance Party agrees, provided
that, and for so long as, no Event of Default has occurred and is continuing,
to co-operate with the Parent with a view to completing and submitting any
forms required for the purpose of ensuring the application of such Double
Taxation Treaty or applicable tax law so far as relevant, provided that no
Finance Party shall be required pursuant to this Clause 26 (Canadian Permitted Bank Fees) to complete or co-operate in
completing any form unless the Parent or the relevant Borrower reasonably
requests it to do so.

 

Notwithstanding any other provision hereof, in
respect of Advances to a Canadian Borrower (i) in the case of Non-Canadian
Banks, following a Notice of Exercise of Sale Right, and (ii) in the case
of the Canadian Permitted Bank if any Event of Default shall occur and be
continuing, such Finance Party in respect of any such Advance shall be entitled
to the benefit of and be subject to sections 14.1, 14.2, 14.3, 14.4 and 14.5
provided that any reference therein 

 

212

 

to “Qualifying Bank”
shall be read as including such Finance Party in such circumstances.

 

(c)                                  For the purposes of this
Clause 26, “Standby Fee”
means a fee at a rate per annum equal to the Applicable Margin on BA Rate Loans
or the Canadian Swingline Advances, as the case may be, minus 18 basis points
for a period of twelve months commencing on the Closing Date and thereafter
minus 25.5 basis points.

 

27.                               COSTS AND
EXPENSES

 

27.1                           Transaction Expenses

 

The Parent shall, from time to time on demand of the
Facility Agent, reimburse (or cause to be paid to) the Facility Agent, the
Security Agent and each of the Arrangers for all reasonable and invoiced
out-of-pocket costs and expenses (including the fees of any appraiser appointed
for the purposes of determining the Borrower Equipment Market Value and the
reasonable and invoiced legal fees and expenses of White & Case LLP
and Gide Loyrette Nouel as legal counsel to the Arrangers and Linklaters and a
single counsel in each other relevant jurisdiction) together with any VAT
thereon (subject to Clause 14.7(c) (VAT))
incurred by them in connection with the negotiation, preparation and execution
of the Finance Documents, the completion of the transactions therein
contemplated and the primary syndication of the Facilities provided that the
Parent shall not be obliged to reimburse the Facility Agent, the Security Agent
or the Arrangers for any fees of any lawyers, accountants, surveyors,
appraisers or other experts or advisors engaged by the Facility Agent, the
Security Agent or the Arrangers without the prior approval of the Parent.

 

27.2                           Preservation and Enforcement of
Rights

 

The Parent shall, from time to time on demand of the
Facility Agent, reimburse (or cause to be reimbursed) the Finance Parties for
all costs and expenses (including reasonable legal fees of a single counsel in
each relevant jurisdiction (except that where correspondence lawyers will be
required in any applicable political or regional subdivision thereof,
reasonable fees incurred by such correspondence lawyers shall also be
reimbursed)) on a full indemnity basis together with any VAT thereon (subject
to Clause 14.7(c) (VAT)) incurred
in or in connection with the preservation and/or enforcement of any of the
rights of the Finance Parties under the Finance Documents (including, without
limitation, any reasonable out-of-pocket costs and expenses relating to any investigation
as to whether or not an Event of Default has occurred or is likely to occur or
any steps necessary or desirable in connection with any proposal for remedying
or otherwise resolving an Event of Default or Potential Event of Default), it
being understood that no Obligor shall be held liable to pay for any taxes,
duties, notary or mortgage keeper fees and similar expenses following the
assignment, transfer or novation by a Finance Party to another party of any of
its rights under a business pledge agreement dated as at the Closing Date
between Hertz Belgium NV as pledgor and BNP Paribas as pledgee.

 

213

 

27.3                           Stamp Taxes

 

The Parent shall pay (or cause to be paid) all
stamp, registration and other similar taxes to which the execution and delivery
of the Finance Documents or any judgment given in connection therewith is or at
any time may be subject and shall, from time to time on demand of the Facility
Agent, indemnify the Finance Parties against any liabilities, costs, claims and
expenses resulting from any failure to pay or any delay in paying any such tax.

 

27.4                           Amendment Costs

 

If an Obligor requests any amendment, waiver or
consent then the Parent shall, within five Business Days of demand by the
Facility Agent, reimburse (or cause to be reimbursed) the Finance Parties for
all reasonable out-of-pocket costs and expenses (including reasonable legal fees
of a single counsel in each relevant jurisdiction) together with any VAT
thereon (subject to Clause 14.7(c) (VAT))
directly incurred by such person in responding to or complying with such
request.

 

27.5                           Banks’ Liabilities for Costs

 

If the Parent fails to perform any of its
obligations under this Clause 27 (Costs and Expenses),
each Bank shall, in its Proportion, indemnify each of the Facility Agent, the
Security Agent and the Arrangers against any loss incurred by any of them as a
result of such failure.

 

27.6                           No Other Tax

 

Notwithstanding the foregoing, except as provided in
Clause 27.1 (Transaction Expenses),
Clause 27.2 (Preservation and Enforcement of Rights)
and Clause 27.3 (Stamp Taxes),
the Parent shall have no obligation under this Clause 27 (Costs and Expenses) to any Finance Party with respect to any
tax, levy, impost, duty, charge, fee, deduction or withholding imposed, levied,
collected, withheld or assessed by any governmental authority.

 

28.                               DEFAULT INTEREST
AND BREAK COSTS

 

28.1                           Default Interest Periods

 

If any sum due and payable by an Obligor hereunder
is not paid on the due date therefor in accordance with Clause 31 (Payments) or if any sum due and payable by an Obligor under
any judgment of any court in connection herewith is not paid on the date of
such judgment, the period beginning on such due date or, as the case may be,
the date of such judgment and ending on the date upon which the obligation of
such Obligor to pay such sum is discharged shall be divided into successive
periods, each of which (other than the first) shall start on the last day of
the preceding such period and the duration of each of which shall (except as
otherwise provided in this Clause 28 (Default Interest and Break
Costs)) be selected by the Facility Agent acting reasonably.

 

214

 

28.2                           Default Interest

 

An Unpaid Sum shall bear interest during each
Interest Period in respect thereof at the rate per annum equal to the lesser of
(x) two per cent. per annum and (y) the maximum rate permitted by
applicable law above the percentage rate which would apply to an Advance in the
amount and currency of such Unpaid Sum and for the same Interest Period,
provided that if such Unpaid Sum relates to an Advance which became due and
payable on a day other than the last day of the Term relating thereto:

 

(a)                                  the first Interest Period applicable
to such Unpaid Sum shall be of a duration equal to the unexpired portion of the
current Term relating to that Advance; and

 

(b)                                 the percentage rate of interest
applicable thereto from time to time during such period shall be that which
exceeds by two per cent. the rate which would have been applicable to it had it
not so fallen due.

 

28.3                           Payment of Default Interest

 

Any interest which shall have accrued under
Clause 28.2 (Default Interest) in respect of
an Unpaid Sum shall be due and payable and shall be paid by the Obligor owing
such Unpaid Sum on the last day of each Interest Period in respect thereof or
on such other dates as the Facility Agent may specify by notice to such
Obligor.

 

28.4                           Break Costs

 

If any Bank or L/C Issuer or the Facility Agent
receives or recovers all or any part of an Advance or Unpaid Sum otherwise than
on the last day of the Term relating thereto, the relevant Borrower shall pay
to the Facility Agent on demand for account of such Bank or L/C Issuer an
amount equal to the amount (if any) by which (a) the additional interest
which would have been payable on the amount so received or recovered had it
been received or recovered on the last day of that Term exceeds (b) the
amount of interest which as determined by the Facility Agent (acting
reasonably) would have been payable to the Facility Agent on the last day of
that Term in respect of a deposit in the currency of the amount so received or
recovered placed by it with a prime bank in London for a period starting one
Business Day following the date of such receipt or recovery and ending on the
last day of that Term.

 

29.                               INDEMNITIES

 

29.1                           Indemnity

 

The Parent undertakes to indemnify:

 

(a)                                  each Finance Party against any cost,
claim, loss, expense (including reasonable legal fees of a single counsel in
each relevant jurisdiction) or liability together with any VAT thereon (subject
to Clause 14.7(c) (VAT)), whether
or not reasonably foreseeable, which it may sustain or incur other than through
its gross negligence or wilful misconduct as a consequence of the occurrence of
any Event of Default or any default by any Obligor in the

 

215

 

performance of any of the obligations expressed to be assumed by it in
the Finance Documents;

 

(b)                                 each Bank against any cost or loss
it may suffer other than through its gross negligence or wilful misconduct
under Clause 27.5 (Banks’ Liabilities for Costs)
or Clause 34.6 (Indemnification);
and

 

(c)                                  each Bank and each L/C Issuer
against any loss it may suffer or incur other than through its gross negligence
or wilful misconduct as a result of:

 

(i)                                     its funding or making arrangements
to fund its portion of an Advance requested by any Borrower but not made by
reason of the operation of any one or more of the provisions hereof; or

 

(ii)                                  its issuing or making arrangements
to issue a Letter of Credit but not issued by reason of the operation of any
one or more of the provisions hereof.

 

29.2                           Currency Indemnity

 

If any sum (a “Sum”) due from
an Obligor under the Finance Documents or any order, judgment given or made in
relation thereto has to be converted other than pursuant to Clause 37 (Change of Currency) from the currency (the “First Currency”) in which such Sum is payable into another
currency (the “Second Currency”) for the purpose
of:

 

(a)                                  making or filing a claim or proof
against such Obligor;

 

(b)                                 obtaining an order, judgment in any
court or other tribunal; or

 

(c)                                  enforcing any order, judgment given
or made in relation thereto,

 

the Parent shall indemnify each person to whom such
Sum is due from and against any loss suffered or incurred as a result of any
discrepancy between (a) the rate of exchange used for such purpose to
convert such Sum from the First Currency into the Second Currency and (b) the
rate or rates of exchange available to such person at the time of receipt of
such Sum.

 

29.3                           Acquisition Indemnity

 

(a)                                  The Parent shall indemnify each Finance
Party from time to time within five Business Days of demand of such Finance
Party, against any cost, claim, loss, expense (including legal fees) or
liability together with VAT thereon (subject to Clause 14.7(c) (VAT)), whether or not reasonably foreseeable, which the
relevant Finance Party may sustain or incur (except to the extent that the same
result from the gross negligence or wilful misconduct of that Finance Party or
any breach by that Finance Party of the provisions of the Finance Documents) arising
out of a claim or action of any person relating to the Acquisition (whether or
not consummated) or any use of the proceeds of any Advance.  It is agreed that:

 

216

 

(i)                                     each Finance Party shall promptly notify
the Parent in reasonable detail of any potential claim by it under this
Clause 29.3 promptly upon it becoming aware of that potential claim; and

 

(ii)                                  if the Parent acting reasonably
wishes any Finance Party to enter into any negotiations with a view to
settlement of any dispute with any third party likely to give rise to any cost,
claim, loss, expense or liability for which a claim may be made under this
Agreement, it shall notify that Finance Party accordingly, which Finance Party
will then (to the extent the same would not be prejudicial to its interests or
contrary to any internal policy or advice of its advisers) enter into
negotiations in good faith on a without prejudice basis.

 

(b)                                 Each Finance Party shall promptly
give to the Parent such details and copies of correspondence and process served
concerning (or concerning the circumstances giving rise to) any cost, claim,
loss, expense or liability which may form the basis of any claim by it on the
Parent.

 

(c)                                  At the request of the Parent acting
reasonably, from time to time, each Finance Party will discuss with the Parent
and will give careful consideration in good faith to the views of the Parent
concerning the appointment of professional advisers in connection with any
cost, claim, loss, expense or liability (and in connection with the
circumstances giving rise thereto and any proceedings, current, pending or
threatened relating thereto) and the conduct of any proceedings, and will use
reasonable endeavours to procure that (once appointed) all professional
advisers acting for it in relation thereto shall do likewise and that where
such Finance Party does not reasonably consider that it is against such Finance
Party’s best interests, one firm of professional advisers only is appointed to
represent all of the Finance Parties.

 

(d)                                 To induce the Canadian Permitted
Bank, and, if applicable, the Non-Canadian Banks, to provide BA Rate Loans on
the terms provided herein, if:

 

(i)                                     any BA Rate Loan is repaid in whole
or in part prior to the last day of its Term (whether that repayment is made
pursuant to any provision of this Agreement of any other Finance Document or
occurs as a result of acceleration, by operation of law or otherwise);

 

(ii)                                  a Canadian Borrower shall default in
payment when due of the principal amount of or interest of any BA Rate Loan;

 

(iii)                               a Canadian Borrower shall refuse to
accept any borrowing of, or shall request a termination of any borrowing of,
conversion into or continuation of any BA Rate Loans after a Canadian Borrower
has given notice requesting the same in accordance herewith; or

 

(iv)                              a Canadian Borrower shall fail to
make any prepayment of any BA Rate Loan after it has given a notice thereof in
accordance herewith,

 

then the Parent shall indemnify and hold harmless
the Canadian Permitted Bank and the Non-Canadian Banks from and against all
losses, costs and

 

217

 

expenses resulting from or arising from any of the
foregoing.  Such indemnification shall
include any loss (including loss of margin) or expense arising from the
reemployment of funds obtained by it or from fees payable to terminate deposits
from which such funds were obtained.  For
the purpose of calculating amounts payable to the Canadian Permitted Bank and
the Non-Canadian Banks under this paragraph (d), the Canadian Permitted
Bank and after the Notice of Exercise of Sale Right, the Non-Canadian Banks
shall be deemed to have actually funded its relevant BA Rate Loan through the
purchase of a deposit bearing interest at the BA Rate in an amount equal to the
amount of that BA Rate Loan and having a maturity comparable to the relevant
Term, provided that the Canadian Permitted Bank and the Non-Canadian Banks may
fund each of its BA Rate Loans in any manner it sees fit, and the foregoing
assumption shall be utilised only for the calculation of amounts payable under
this subsection.  This covenant shall
survive the termination of this Agreement and payment of all amounts payable
hereunder.  As promptly as practicable
under the circumstances, the Canadian Permitted Bank and the Non-Canadian Banks
shall provide the Parent with its written calculation of all amounts payable
pursuant to this Clause 29.3(d), and such calculation shall be binding on
the parties hereto unless the Parent shall object in writing within ten (10) Business
Days of receipt thereof, specifying the basis for such objection in detail.

 

30.                               CURRENCY OF
ACCOUNT AND PAYMENT

 

Euro is the currency of account and payment for each
and every sum at any time due from an Obligor hereunder, provided that:

 

(a)                                  each payment in respect of costs and
expenses shall be made in the currency in which the same were incurred;

 

(b)                                 each payment pursuant to
Clause 14.2 (Tax Indemnity) or Clause 16
(Increased Costs) shall be made in the
currency specified by the party claiming thereunder;

 

(c)                                  each payment of commitment fees
pursuant to Clause 25.1 (Commitment Commission)
shall be made in the Designated Currency in which the Available Facility in
relation to a Facility or Tranche (as the case may be) is denominated;

 

(d)                                 each payment of interest shall be
made in the Designated Currency of the Advance or Unpaid Sum on which such
interest accrued; and

 

(e)                                  each payment of principal shall be
made in the Designated Currency in which the relevant Advance or Unpaid Sum is
denominated; and

 

(f)                                    each payment pursuant to
Clause 12 (C Borrower’s Liabilities in relation to
Letters of Credit) in relation to a Letter of Credit shall be made
in the currency in which such Letter of Credit is denominated.

 

218

 

31.                               PAYMENTS

 

31.1                           Payments to the Facility Agent

 

(a)                                  On each date on which this Agreement
requires an amount (other than a Swingline Advance and the first Advance) to be
paid by an Obligor, such Obligor shall make the same available to the Facility
Agent for value on the due date at such time and in such funds as the Facility
Agent shall specify from time to time as follows:

 

	
  (i)

  	
  in the case of an amount denominated in
  Euros:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BNP Paribas S.A.,
  Paris

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SWIFT Code:

  	
   

  	
  BNPAFRPPTTN

  
	
   

  	
  IBAN:

  	
   

  	
  FR34 3000 4056
  5800 0008 3845 H89

  
	
   

  	
  Reference:

  	
   

  	
  Hertz

  
	
   

  	
   

  	
   

  	
   

  
	
  (ii)

  	
  in the case of an amount denominated in
  Australian Dollars:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BNP Paribas, Sydney

  
	
   

  	
  BSB:

  	
   

  	
  222-200

  
	
   

  	
  Account:

  	
   

  	
  838890 402

  
	
   

  	
  SWIFT Code:

  	
   

  	
  BNPAU2S200

  
	
   

  	
   

  	
   

  	
   

  
	
  (iii)

  	
  in the case of an amount denominated in
  Canadian Dollars:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SWIFT Code:

  	
   

  	
  BNPACAMM

  
	
   

  	
  in favour of:

  	
   

  	
  BNP Paribas, Canada

  
	
   

  	
  Reference:

  	
   

  	
  Hertz

  
	
   

  	
   

  	
   

  	
   

  
	
  (iv)

  	
  in the case of an amount denominated in
  GBP:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SWIFT Code:

  	
   

  	
  BARCGB22

  
	
   

  	
  in favour of:

  	
   

  	
  BNP Paribas S.A., Paris

  
	
   

  	
  SWIFT Code:

  	
   

  	
  BNPAFRPPXXX

  
	
   

  	
  for the account of:

  	
   

  	
  BNPAFRPPTTN

  
	
   

  	
  for credit to IBAN:

  	
   

  	
  FR34 3000 4056 5800 0008 3845 H89

  
	
   

  	
  Reference:

  	
   

  	
  Hertz

  
	
   

  	
   

  	
   

  	
   

  
	
  (v)

  	
  in the case of an amount denominated in
  CHF:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SWIFT Code:

  	
   

  	
  UBSWCHZH80A

  
	
   

  	
  in favour of:

  	
   

  	
  Bnp Paribas S.A., Paris

  
	
   

  	
  SWIFT Code:

  	
   

  	
  BNPAFRPPXXX

  
	
   

  	
  for the account of:

  	
   

  	
  BNPAFRPPTTN

  
	
   

  	
  for credit to IBAN:

  	
   

  	
  FR34 3000 4056 5800 0008 3845 H89

  
	
   

  	
  Reference:

  	
   

  	
  Hertz

  

 

or to such other account with such bank as the
Facility Agent shall specify from time to time.

 

219

 

(b)                                 On each date on which this Agreement
requires a Swingline Advance to be paid by an Obligor, such Obligor shall make
the same available directly to the Borrower for value on the due date at such
time and in such funds and to such account with such bank as the Facility Agent
shall specify from time to time.

 

(c)                                  On each date on which this Agreement
requires an amount to be paid by a Bank, such Bank shall make the same available
to the Facility Agent for value on the due date at such time and in such funds
and to such account with such bank as the Facility Agent shall specify from
time to time.

 

31.2                           Payments by the Facility Agent

 

Save as otherwise provided herein, each payment
received by the Facility Agent pursuant to Clause 31.1 (Payments to the Facility Agent) shall:

 

(a)                                  in the case of a payment received
for the account of a Borrower, be made available by the Facility Agent to such
Borrower by application:

 

(i)                                     first, as soon as reasonably
practicable in or towards payment of any amount then due from such Borrower
hereunder to the person from whom the amount was so received; and

 

(ii)                                  second, as soon as reasonably
practicable in or towards payment to the account of such Borrower with such
bank as such Borrower shall have previously notified to the Facility Agent for
this purpose; and

 

(b)                                 in the case of any other payment, be
made available by the Facility Agent to the person entitled to receive such
payment in accordance with this Agreement (in the case of a Bank, for the
account of its relevant Facility Office) for value the same day by transfer to
such account of such person with such bank in the principal financial centre of
the currency of such payment as such person shall have previously notified to
the Facility Agent.

 

31.3                           No Set-off

 

All payments required to be made by an Obligor
hereunder shall be calculated without reference to any set-off or counterclaim
and shall be made free and clear of and without any deduction for or on account
of any set-off or counterclaim.

 

31.4                           Clawback

 

Where a sum is to be paid hereunder to the Facility
Agent for account of another person, the Facility Agent shall not be obliged to
make the same available to that other person until it has been able to
establish to its satisfaction that it has actually received such sum, but if it
does so and it proves to be the case that it had not actually received such
sum, then the person to whom such sum was so made available shall on request
refund the same to the Facility Agent together with an amount sufficient to
indemnify the Facility Agent against any cost or loss it may have suffered or
incurred by reason of its having paid out such sum prior to its having received
such sum.

 

220

 

31.5                           Partial Payments

 

If and whenever a payment is made by a Borrower
hereunder and the Facility Agent receives an amount less than the due amount of
such payment the Facility Agent may apply the amount received towards the
obligations of such Borrower under this Agreement in the following order:

 

(a)                                  first, in or towards payment pro rata of any unpaid fees (other than any fronting bank
fee or commitment commission fee), costs and expenses of each of the Facility
Agent, the Security Agent and the Arrangers;

 

(b)                                 second, in or towards payment of any
demand made by an L/C Issuer in respect of a payment made or to be made by it
under a Letter of Credit due but unpaid;

 

(c)                                  third, in or towards payment pro
rata of any accrued interest, letter of credit commission or fronting bank fee
payable to any Bank or L/C Issuer hereunder due but unpaid;

 

(d)                                 fourth, in or towards payment pro
rata of any Outstandings due but unpaid; and

 

(e)                                  fifth, in or towards payment pro
rata of any other sum due but unpaid.

 

31.6                           Variation of Partial Payments

 

The order of partial payments set out in
Clause 31.5 (Partial Payments) shall override
any appropriation made by the Borrower to which the partial payment relates but
the order set out in Clauses 31.5(d) and 31.5(e) (Partial Payments) may be varied if agreed by all the Banks.

 

31.7                           Business Days

 

(a)                                  Any payment which is due to be made
on a day that is not a Business Day shall be made on the next Business Day in
the same calendar month (if there is one) or the preceding Business Day (if
there is not).

 

(b)                                 During any extension of the due date
for payment of any principal or an Unpaid Sum under this Agreement in
accordance with Clause 31.7(a) (Business Days)
interest is payable on the principal at the rate payable on the original due
date.

 

32.                               SET-OFF

 

32.1                           Contractual Set-off

 

Each Obligor authorises each Bank and each L/C
Issuer to apply any credit balance to which such Obligor is entitled on any
account of such Obligor with such Bank in satisfaction of any sum due and
payable from such Obligor to such Bank or L/C Issuer, as the case may be,
hereunder but unpaid.  For this purpose,
each Bank and L/C Issuer is authorised to purchase with the moneys standing to
the credit of any such account such other currencies as may be necessary to
effect such application.

 

221

 

32.2                           Set-off not Mandatory

 

No Bank or L/C Issuer shall be obliged to exercise
any right given to it by Clause 32.1 (Contractual Set-off).

 

33.                               SHARING

 

33.1                           Payments to Banks

 

If a Bank (a “Recovering  Bank”) applies any receipt or recovery from an Obligor to a
payment due under this Agreement and such amount is received or recovered other
than in accordance with Clause 31 (Payments), then
such Recovering Bank shall:

 

(a)                                  within three Business Days, notify
the Facility Agent of such receipt or recovery;

 

(b)                                 at the request of the Facility
Agent, promptly pay to the Facility Agent an amount (the “Sharing  Payment”)
equal to such receipt or recovery less any amount which the Facility Agent
determines may be retained by such Recovering Bank as its share of any payment
to be made in accordance with Clause 31.5 (Partial
Payments).

 

33.2                           Redistribution of Payments

 

The Facility Agent shall treat the Sharing Payment
as if it had been paid by the relevant Obligor and distribute it between the
Finance Parties (other than the Recovering Bank) in accordance with
Clause 31.5 (Partial Payments).

 

33.3                           Recovering Bank’s Rights

 

The Recovering Bank will be subrogated into the
rights of the parties which have shared in a redistribution pursuant to
Clause 33.2 (Redistribution of Payments) in
respect of the Sharing Payment (and the relevant Obligor shall be liable to the
Recovering Bank in an amount equal to the Sharing Payment).

 

33.4                           Repayable Recoveries

 

If any part of the Sharing Payment received or
recovered by a Recovering Bank becomes repayable and is repaid by such
Recovering Bank, then:

 

(a)                                  each party which has received a
share of such Sharing Payment pursuant to Clause 33.2 (Redistribution of Payments) shall, upon request of the
Facility Agent, pay to the Facility Agent for account of such Recovering Bank
an amount equal to its share of such Sharing Payment; and

 

(b)                                 such Recovering Bank’s rights of
subrogation in respect of any reimbursement shall be cancelled and the relevant
Obligor will be liable to the reimbursing party for the amount so reimbursed.

 

222

 

33.5                           Exception

 

(a)                                  This Clause 33 (Sharing) shall not apply if the Recovering Bank would not,
after making any payment pursuant hereto, have a valid and enforceable claim
against the relevant Obligor.

 

(b)                                 A Recovering Bank is not obliged to
share with any other Finance Party any amount which the Recovering Bank has
received or recovered as a result of taking legal or arbitration proceedings
if:

 

(i)                                     it notified the other Finance Party
of its intention to take such legal or arbitration proceedings; and

 

(ii)                                  the other Finance Party had an
opportunity to participate in those legal or arbitration proceedings but did
not do so.

 

34.                               THE FACILITY
AGENT, THE SECURITY AGENT, THE GLOBAL COORDINATOR AND THE FINANCE PARTIES

 

34.1                           Appointment of the Facility Agent
and the Global Coordinator

 

(a)                                  Each of the Arrangers, the Banks and
the L/C Issuers hereby appoints the Facility Agent to act as its Facility Agent
in connection with the Finance Documents and authorises the Facility Agent to
exercise such rights, powers, authorities and discretions as are specifically
delegated to the Facility Agent by the terms of the Finance Documents, together
with any such incidental rights, powers, authorities and discretions.

 

(b)                                 Each of the Arrangers, the Banks and
the L/C Issuers hereby appoints the Global Coordinator to act as its Global
Coordinator in connection with the Finance Documents and authorises the Global
Coordinator to exercise such rights, powers, authorities and discretions as are
specifically delegated to the Global Coordinator by the terms of the Finance
Documents, together with any such incidental rights, powers, authorities and
discretions.

 

(c)                                  Each Finance Party (other than, in
each case, the appointee) authorises the Facility Agent to:

 

(i)                                     execute each Finance Document to
which it is expressed to be a party in its name and on its behalf and to enter
into any agreements or other documents or certificates incidental or ancillary
thereto; and

 

(ii)                                  appear before any public notaries,
registrars, public officers, courts and governmental authorities to file any
necessary documents and to take such action as may be required to give full
effect to this Clause 34.1(c).

 

223

 

34.2         Security Agent’s, Facility Agent’s
and Global Coordinator’s Discretions

 

(a)           It is expressly declared that each
of the Security Agent, the Facility Agent and the Global Coordinator may:

 

(i)            perform any of its duties,
obligations and responsibilities under this Agreement or any of the other
Finance Documents by or through its affiliates, personnel or agents on the
basis that it may extend the benefits of any indemnity received by it hereunder
to its affiliates, personnel or agents and provided that in the absence of
gross negligence or wilful default on its part, it shall not be in any way
responsible for any loss incurred by reason of any misconduct or default on the
part of any such affiliates, personnel or agents;

 

(ii)           engage and pay for the advice or
services of any lawyers, accountants, surveyors or other experts approved by
the Parent (such approval not to be unreasonably withheld or delayed) whose
advice or services may to it seem necessary, expedient or desirable and rely
upon any advice so obtained;

 

(iii)          rely as to any matters of fact which
might reasonably be expected to be within the knowledge of any of the Obligors
upon a certificate signed by or on behalf of such Obligor;

 

(iv)          rely upon any communication or
document believed by it to be genuine;

 

(v)           refrain from acting in accordance
with any instructions of any Instructing Group to begin any legal action or
proceeding arising out of or in connection with any of the Finance Documents
until it shall have received such security as it may reasonably require
(whether by way of payment in advance or otherwise) for all costs, claims,
losses, expenses (including legal fees) and liabilities together with any VAT
thereon (subject to Clause 14.7(c) (VAT))
which it will or may expend or incur in complying with such instructions;

 

(vi)          refrain from acting in accordance
with any instructions of any Instructing Group (or, if appropriate, the Banks)
until it has received such Security as it may reasonably require for any cost,
loss or liability (together with any associated VAT (subject to
Clause 14.7(c) (VAT))), which
it may incur in complying with such instructions; and

 

(vii)         notwithstanding anything else herein
contained, refrain from doing anything which would in its reasonable opinion be
contrary to any relevant law of any jurisdiction or any relevant directive or
regulation of any agency of any state or which would otherwise render it liable
to any person and may do anything which is, in its reasonable opinion,
necessary to comply with any such law, directive or regulations.

 

(b)           It is expressly declared that each
of the Security Agent and the Global Coordinator may refrain from exercising
any right, power or discretion vested

 

224

 

in it as agent hereunder unless and until instructed by the relevant
Instructing Group as to whether or not such right, power or discretion is to be
exercised and, if it is to be exercised, as to the manner in which it should be
exercised.

 

34.3         Security Agent’s, Facility Agent’s
and Global Coordinator’s Assumptions

 

Each of the Security Agent, the Facility Agent and
the Global Coordinator may:

 

(a)           assume that unless it has, in its
capacity as agent or trustee hereunder, received notice to the contrary from
any other party hereto, that (a) any representation made or deemed to be
made by an Obligor in connection with the Finance Documents is true, (b) any
notice or document is genuine, correct and appropriately authorised, (c) no
Event of Default or Potential Event of Default has occurred, (d) no
Obligor is in breach of or default under its obligations under the Finance
Documents and (e) any right, power, authority or discretion vested therein
upon an Instructing Group, the Banks or a L/C Issuer or any other person or
group of persons has not been exercised, in each case without any obligations
on the Security Agent, the Facility Agent or the Global Coordinator to carry
out any specific or independent investigation unless otherwise provided under
this Agreement; and

 

(b)           assume that the relevant Facility
Office or Facility Offices of each Bank is or are notified to it by such Bank
in writing prior to the Closing Date (or, in the case of a Transferee, at the
end of the Transfer Certificate to which it is a party as Transferee) until it
has received from such Bank a notice designating some other office of such Bank
to replace such Facility Office or as an additional Facility Office and act
upon any such notice until the same is superseded by a further such notice.

 

34.4         Facility Agent’s Obligations

 

(a)           The Facility Agent shall:

 

(i)            promptly inform each Bank, and where
appropriate, each L/C Issuer of the contents of any written notice or document
received by it in its capacity Facility Agent from any of the Obligors under
any Finance Document;

 

(ii)           promptly notify each Bank, and where
appropriate, each L/C Issuer of the occurrence of any Event of Default or
Potential Event of Default or any default by any of the Obligors in the due
performance of or compliance with its obligations under any Finance Document of
which the Facility Agent has written notice from any other party hereto;

 

(iii)          save as otherwise provided herein,
act as Facility Agent under the Finance Documents in accordance with any
instructions given to it by the relevant Instructing Group, which instructions
shall be binding on the Finance Parties; and

 

(iv)          not exercise any right, power or
discretion vested in it as agent hereunder unless and until instructed by the
relevant Instructing Group

 

225

 

as to whether or not such right, power or discretion is to be exercised
and, if it is to be exercised, as to the manner in which it should be
exercised.

 

(b)           The Facility Agent shall:

 

(i)            review any Asset Report delivered by
a Borrower prior to the date and time specified in the Timetable for a
Notification to be delivered by the Facility Agent to the relevant Banks;

 

(ii)           determine the Borrowing Base
Calculations as at each Calculation Date or any other relevant date; and

 

(iii)          perform such other tasks as may be
reasonably required by the Banks.

 

34.5         Excluded Obligations of Facility
Agent, Security Agent, Global Coordinator and Arrangers

 

Notwithstanding anything to the contrary expressed
or implied herein, the Facility Agent, the Security Agent, the Global
Coordinator or the Arrangers shall:

 

(a)           not be bound to enquire as to (a) whether
or not any representation made or deemed to be made by an Obligor in connection
with the Finance Documents is true, (b) the occurrence or otherwise of any
Event of Default or Potential Event of Default, (c) the performance by an
Obligor of its obligations under the Finance Documents or (d) any breach
of or default by an Obligor of or under its obligations under the Finance
Documents;

 

(b)           not be bound to account to any Bank
for any sum or the profit element of any sum received by it for its own
account;

 

(c)           not be bound to disclose to any
other person any information relating to any member of the Group or other
Obligor if (a) such person, on providing such information, expressly
stated to the Facility Agent, the Security Agent, the Global Coordinator or any
of the Arrangers, that such information was confidential or (b) such
disclosure would or might in its opinion constitute a breach of any law or be
otherwise actionable at the suit of any person;

 

(d)           not be under any obligations other
than those for which express provision is made herein;

 

(e)           not be or be deemed to be a
fiduciary for any other party hereto except to the extent expressly provided
for in the Finance Documents;

 

(f)            not be responsible or liable for
anything done or not done by it under or in connection with the Finance
Documents save to the extent that any such liability is found in a final,
non-appealable judgment by a court of competent jurisdiction to have resulted
from its gross negligence or wilful misconduct, as the case may be;

 

(g)           not be bound to examine or enquire
into or be responsible for the legality, validity, effectiveness, adequacy or
enforceability of any Finance Document

 

226

 

or any agreement, assignment or other document relating thereto or its
ability to exercise the rights, powers, authorities and discretions thereby
conferred, and so that none of the Facility Agent, the Security Agent, the
Global Coordinator or any of the Arrangers shall be responsible for its
inability to exercise any of the same or for any loss or damage thereby
occasioned;

 

(h)           not be bound to check or enquire on
behalf of any Finance Party into the adequacy, accuracy or completeness of any
communication delivered to it under any of the Finance Documents, any legal or
other opinions, reports, valuations, certificates, appraisals or other
documents delivered or made or required to be delivered or made at any time in
connection with any of the Finance Documents, any security to be constituted
thereby or any other report or other document, statement or information
circulated, delivered or made, whether orally or otherwise and whether before,
on or after the date of this Agreement;

 

(i)            not be bound to take any steps or
perform any obligation or exercise any right or fulfil any request if to do so
would in its reasonable opinion breach or conflict with or contradict or be
contrary to any rule, regulation, law, regulatory requirement, court order or
judgment in any relevant jurisdiction or expose the Facility Agent or the
Security Agent or the Global Coordinator or the Arrangers to liabilities in any
jurisdiction;

 

(j)            not be liable for any delay (or any
related consequences) in crediting an account with an amount required under the
Finance Documents to be paid by it if it has taken all necessary steps as soon
as reasonably practicable to comply with the regulations or operating
procedures of any recognised clearing or settlement system used by it for that
purpose; and

 

(k)           not be obliged to carry out any
“know your customer” or other checks in relation to any person on behalf of any
Bank and each Bank confirms to each of the Facility Agent, Security Agent and
the Global Coordinator that it is solely responsible for any such checks it is
required to carryout and that it may not rely on any statement in relation to
such checks made by the Facility Agent, Security Agent  or  the
Global Coordinator.

 

34.6         Indemnification

 

(a)           Each Bank shall, in its Proportion,
from time to time and within three Business Days of a demand by the Facility
Agent, indemnify the Facility Agent against any and all liabilities, costs,
claims, fees, charges, losses, expenses (including legal fees) and liabilities
together with, in each case, any VAT (subject to Clause 14.7(c) (VAT)) or similar tax charged or chargeable in respect
thereof thereon which the Facility Agent may incur, otherwise than by reason of
its own gross negligence or wilful misconduct, in acting in its capacity as
Facility Agent hereunder (other than any which have been reimbursed by the
Parent pursuant to Clause 29.1 (Indemnity)).

 

(b)           Each Bank shall, in its Proportion,
from time to time and within three Business Days of a demand by the Security
Agent indemnify the Security Agent against any and all liabilities, costs,
claims, fees, charges, losses, expenses (including

 

227

 

legal fees) and liabilities together with, in each case, any VAT
(subject to Clause 14.7(c) (VAT)) or
similar tax charged or chargeable in respect thereof thereon which the Security
Agent may incur, otherwise than by reason of its own gross negligence or wilful
misconduct, in acting in its capacity as Security Agent hereunder (other than
any which have been reimbursed by the Parent pursuant to Clause 29.1 (Indemnity)).

 

(c)           Each Bank shall, in its Proportion,
from time to time and within three Business Days of a demand by the Global
Coordinator indemnify the Global Coordinator against any and all liabilities,
costs, claims, fees, charges, losses, expenses (including legal fees) and
liabilities together with, in each case, any VAT (subject to Clause 14.7(c) (VAT)) or similar tax charged or chargeable in respect
thereof thereon which the Global Coordinator may incur, otherwise than by
reason of its own gross negligence or wilful misconduct, in acting in its
capacity as Global Coordinator hereunder (other than any which have been
reimbursed by the Parent pursuant to Clause 29.1 (Indemnity)).

 

34.7         Exclusion of Liabilities

 

Each party to this Agreement acknowledges and agrees
that:

 

(a)           the obligations of the Facility
Agent, the Security Agent and the Global Coordinator under the Finance
Documents are several and not joint;

 

(b)           none of the Facility Agent, the
Security Agent and the Global Coordinator is responsible to the other or to any
other party to this Agreement for the exercise by any other person of, or the
failure by any other person to exercise, any judgment, discretion or power
given to such person by or in connection with the Finance Documents or any
other agreement, arrangement or document entered into, made or executed in
anticipation of, pursuant to or in connection with the Finance Documents;

 

(c)           none of the Facility Agent, the
Security Agent and the Global Coordinator is responsible to the other or to any
other party to this Agreement for the performance or non-performance of any
obligations owed by the other or such other’s officers, employees or agents
under any Finance Document; and

 

(d)           none of the Facility Agent, Security
Agent and the Global Coordinator is responsible for the adequacy, accuracy
and/or completeness of the Information Memorandum or any other information
supplied by the Facility Agent or the Security Agent or the Global Coordinator
or the Arrangers, by an Obligor or by any other person in connection with the
Finance Documents or any other agreement, arrangement or document entered into,
made or executed in anticipation of, pursuant to or in connection with the
Finance Documents.

 

34.8         No Actions

 

Each Finance Party agrees that it will not assert or
seek to assert or take any proceedings against any director, officer or
employee of the Facility Agent, the Security Agent, the Global Coordinator or
any of the Arrangers any claim it might

 

228

 

have against any of them in respect of the matters
referred to in Clause 34.7 (Exclusion of Liabilities).

 

34.9         Business with Group

 

The Facility Agent, the Security Agent, the Global
Coordinator and the Arrangers or any of them may accept deposits from, lend
money to and generally engage in any kind of banking or other business with any
member of the Group or any other Obligor.

 

34.10       Resignation

 

Each of the Facility Agent and the Global
Coordinator may (after consultation among the Facility Agent and the Global
Coordinator) resign its appointment hereunder at any time without assigning any
reason therefor by giving not less than 30 days’ prior written notice to that
effect to each of the other parties hereto, provided that no such resignation
shall be effective until a successor for the Facility Agent or Global
Coordinator, as the case may be, is appointed in accordance with the succeeding
provisions of this Clause 34 (The Facility Agent, the
Security Agent, the Global Coordinator and the Finance Parties).

 

34.11       Removal of Facility Agent or Global
Coordinator

 

An Instructing Group may remove the Facility Agent
or the Global Coordinator from its role as Facility Agent or the Global
Coordinator, as the case may be, hereunder by reason of wilful misconduct by
giving notice to that effect to each of the other parties hereto.  Such removal shall take effect only when a
successor to the Facility Agent or the Global Coordinator is appointed in
accordance with the terms hereof.

 

34.12       Successor Facility Agent or Global
Coordinator

 

If the Facility Agent or the Global Coordinator
gives notice of its resignation pursuant to Clause 34.10 (Resignation) or it is removed pursuant to Clause 34.11
(Removal of Facility Agent or Global Coordinator),
then any reputable and experienced bank or other financial institution
acceptable to the Parent (acting reasonably) and without delay may be appointed
as a successor to the Facility Agent or the Global Coordinator by an
Instructing Group during the period of such notice but, if no such successor is
so appointed, the Facility Agent or the Global Coordinator may appoint such a
successor itself provided that such appointment is acceptable to the Parent
(acting reasonably).

 

34.13       Rights and Obligations

 

If a successor to the Facility Agent or the Global
Coordinator is appointed under the provisions of Clause 34.12 (Successor Facility Agent or Global Coordinator), then (a) the
retiring Facility Agent or the Global Coordinator shall be discharged from any
further obligation hereunder but shall remain entitled to the benefit of the
provisions of this Clause 34 (The Facility Agent, the
Security Agent, the Global Coordinator  and the
Finance Parties) and (b) its successor and each of the other
parties hereto shall have the same rights and obligations amongst themselves as
they would have had if such successor had been a party hereto.

 

229

 

34.14       Own Responsibility

 

It is understood and agreed by each Finance Party
that at all times it has itself been, and will continue to be, solely
responsible for making its own independent appraisal of and investigation into
all risks arising under or in connection with this Agreement including, but not
limited to:

 

(a)           the financial condition,
creditworthiness, condition, affairs, status and nature of each member of the
Group and each other Obligor;

 

(b)           the legality, validity,
effectiveness, adequacy and enforceability of the Finance Documents and any
other agreement, arrangement or document entered into, made or executed in
anticipation of, pursuant to or in connection with the Finance Documents;

 

(c)           whether such Finance Party has
recourse, and the nature and extent of that recourse, against an Obligor or any
other person or any of their respective assets under or in connection with the
Finance Documents, the transactions therein contemplated or any other
agreement, arrangement or document entered into, made or executed in
anticipation of, pursuant to or in connection with the Finance Documents; and

 

(d)           the adequacy, accuracy and/or
completeness of the Information Memorandum and any other information provided
by the Facility Agent, the Security Agent, the Global Coordinator and the
Arrangers or by any other person in connection with the Finance Documents the
transactions contemplated therein or any other agreement, arrangement or
document entered into, made or executed in anticipation of, pursuant to or in
connection with the Finance Documents.

 

Accordingly, each Finance Party acknowledges to the
Facility Agent, the Security Agent, the Global Coordinator and the Arrangers
that it has not relied on and will not hereafter rely on the Facility Agent, the
Security Agent, the Global Coordinator, the Arrangers or any of them in respect
of any of these matters.

 

34.15       Agency Division Separate

 

In acting as Facility Agent, Security Agent or the
Global Coordinator hereunder for any of the Finance Parties, the agency
division of the relevant person shall be treated as a separate entity from any
other of its divisions or departments and, notwithstanding the foregoing
provisions of this Clause 34 (The Facility Agent, the
Security Agent, the Global Coordinator and the Finance Parties), any
information received by some other division or department of the Facility
Agent, Security Agent or the Global Coordinator may be treated as confidential
and shall not be regarded as having been given to such person’s agency division.  Any information or notice given to or
received by the Security Agent, the Facility Agent or the Global Coordinator in
its capacity as a Finance Party shall not be deemed to have been received by
the Security Agent, the Facility Agent or the Global Coordinator in its
capacity as Security Agent, Facility Agent, or the Global Coordinator
respectively.

 

230

 

34.16       Security Agent, Facility Agent or
the Global Coordinator as Finance Parties

 

Each of the Security Agent, the Facility Agent and
the Global Coordinator is, at the date of this Agreement, a Finance Party and
shall be entitled, notwithstanding that it is acting as agent or trustee, to
take, or refrain from taking, any action which it would be entitled so to take
in its capacity as a Finance Party if it were not acting as agent or trustee
and shall not be precluded by virtue of its position as Finance Party from
exercising any of its discretions, power and duties as agent or trustee.

 

34.17       Dealings with the Facility Agent

 

Each of the Security Agent and the Global
Coordinator shall be entitled to, and shall, carry out all dealings with the
other Finance Parties through the Facility Agent and shall be entitled to rely
on the Facility Agent’s certificate as to the entitlement of all or any of the
Finance Parties.

 

34.18       Information

 

The Finance Parties shall furnish to the Facility
Agent, for transmission to the Security Agent, such information as the Security
Agent may reasonably specify (through the Facility Agent) as being necessary or
desirable for the purpose of enabling the Security Agent to perform its
functions as trustee and as security agent.

 

34.19       Copies of Notices

 

In each case in which an Obligor is required by this
Agreement to provide a copy or copies to one or more agents of any notice or
instruction that is delivered to another agent, failure to provide such copy or
copies shall not invalidate such notice or instruction.

 

35.          THE BANKS AND
THE L/C ISSUER

 

35.1         Banks’ Indemnity

 

If any C Borrower fails to comply with its
obligations under Clause 12.1 (C Borrower’s Indemnity to
L/C Issuers) with respect to a Letter of Credit the Facility Agent
shall make demand on each Bank for its share of such L/C Amount and, subject to
Clause 35.2 (Direct Participation), each Bank
shall indemnify the L/C Issuer for such Bank’s L/C Proportion of each L/C
Amount.

 

35.2         Direct Participation

 

If any Bank is not permitted (by its constitutional
documents or any applicable law) to comply with Clause 35.1 (Banks’ Indemnity) then such Bank will not be obliged to
comply with Clause 35.1 (Banks’ Indemnity)
and shall instead be deemed to have taken, on the date such Letter of Credit,
as the case may be, is issued (or if later, on the date such L/C Proportion is
transferred or assigned to such Bank in accordance with the terms of this
Agreement), an undivided interest and participation in such Letter of Credit or
in an amount equal to such Bank’s L/C Proportion of such Letter of Credit.  On receipt of a demand made by the Facility
Agent in accordance with Clause 35.1 (Banks’ Indemnity),
each such Bank shall pay to the Facility Agent (for the account of the L/C
Issuer) its L/C Proportion of any L/C Amount.

 

231

 

35.3         Obligations not Discharged

 

Neither the obligations of each Bank in this
Clause 35 nor the rights, powers and remedies conferred upon the L/C
Issuer by this Agreement or by law shall be discharged, impaired or otherwise
affected by:

 

(a)           the winding-up, dissolution,
administration or re-organisation of the relevant L/C Issuer, a C Borrower or
any other person or any change in its status, function, control or ownership;

 

(b)           any of the obligations of the
relevant L/C Issuer, a C Borrower or any other person hereunder, under a Letter
of Credit or under any other security taken in respect of its obligations
hereunder or under a Letter of Credit being or becoming illegal, invalid,
unenforceable or ineffective in any respect;

 

(c)           time or other indulgence being
granted or agreed to be granted to the relevant L/C Issuer, a C Borrower or any
other person in respect of its obligations hereunder, under a Letter of Credit
or under any such other security;

 

(d)           any amendment to, or any variation,
waiver or release of, any obligation of an L/C Issuer, a C Borrower or any
other person hereunder, under a Letter of Credit or under any such other
security; and

 

(e)           any other act, event or omission
(other than the gross negligence or wilful misconduct of an L/C Issuer) which,
but for this Clause 35.3, might operate to discharge, impair or otherwise
affect any of the obligations of each Bank herein contained or any of the
rights, powers or remedies conferred upon any L/C Issuer by this Agreement or
by law.

 

The obligations of each Bank herein contained shall
be in addition to and independent of every other security which any L/C Issuer
may at any time hold in respect of any Letter of Credit.

 

35.4         Settlement Conditional

 

Any settlement or discharge between a Bank and an
L/C Issuer shall be conditional upon no security or payment to any L/C Issuer
by a Bank or any other person on behalf of a Bank being avoided or reduced by
virtue of any laws relating to bankruptcy, insolvency, liquidation or similar
laws of general application and, if any such security or payment is so avoided
or reduced, such L/C Issuer shall be entitled to recover the value or amount of
such security or payment from such Bank subsequently as if such settlement or
discharge had not occurred.

 

35.5         Exercise of Rights

 

No L/C Issuer shall be obliged before exercising any
of the rights, powers or remedies conferred upon them in respect of any Bank by
this Agreement or by law:

 

(a)           to take any action or obtain
judgment in any court against a C Borrower;

 

(b)           to make or file any claim or proof
in a winding-up or dissolution of a C Borrower; or

 

232

 

(c)           to enforce or seek to enforce any
other security taken in respect of any of the obligations of a C Borrower
hereunder.

 

36.          ASSIGNMENTS AND
TRANSFERS

 

36.1         Binding Agreement

 

The Finance Documents shall be binding upon and
ensure to the benefit of each party hereto and its or any subsequent successors
and permitted assignees and transferees.

 

36.2         Assignments and Transfers by
Obligors

 

No Obligor shall be entitled to assign or transfer
all or any of its rights, benefits and obligations under the Finance Documents.

 

36.3         Assignments and Transfers by Banks

 

Subject to Clause 36.4 (Original
Banks) and obtaining the prior written consent of the Coordinator
(such consent not to be unreasonably withheld or delayed (taking into account
the nature and identity of any proposed assignee or transferee together with
such information as is provided in respect thereof by the transferring or
assigning Banks to the Coordinator or is readily publicly available in relation
thereto)), any Bank may, at any time, assign all or any of its rights and
benefits under the Finance Documents or transfer in accordance with this
Clause 36.3 (Assignments and Transfers by Banks)
all or any of its rights, benefits and obligations under the Finance Documents
to a bank or financial institution a (“New Bank”)
(including, for the avoidance of doubt, any entity regularly engaged in or
established for the purpose of making, purchasing or investing in loans,
securities or other financial assets) provided that:

 

(a)           in respect of a Letter of Credit no
such assignment or transfer may be made without the prior written consent of
the relevant L/C Issuer;

 

(b)           the Coordinator’s consent is not
required if such assignment or transfer is:

 

(i)            to any subsidiary or affiliate or
holding company, or to any subsidiary or affiliate of any holding company, of
such Bank;

 

(ii)           to any other Bank;

 

(iii)          to any bank, financial institution
or other entity previously agreed by the Parent and the Arrangers; or

 

(iv)          whilst an Event of Default is
continuing pursuant to any of Clauses 23.1 (Failure to
Pay), 23.5 (Insolvency and
Rescheduling) or 23.6 (Winding-up)

 

provided that, in any case specified in paragraph (b),
the proposed assignee or Transferee shall not, as of the date of any assignment
to it pursuant to this Clause 35, be entitled to receive any greater
payment (before deduction for or on account of any tax) under Clause 14 (Taxes) or Clause 16 (Increased
Costs) than the assigning or transferring Bank would have been
entitled to receive as 

 

233

 

of such date under such Clauses with respect to
the rights assigned (except to the extent that by reason of a change in law, or
the interpretation or application thereof, after the date the transferring Bank
became a party to this Agreement the amount of such payments with respect to
the assignee or transferee would exceed the amount that would have been payable
with respect to the transferring Bank), and provided further that in any case
specified in paragraph (b), no assignment or transfer of all or part of
any rights under the Finance Documents with respect of any Advance made to a
Dutch Borrower that is an Orphan Financeco shall be made by any Bank unless the
assignee or Transferee, as the case may be, is described in paragraph (f) of
the definition of “Qualifying Bank”.

 

(c)                                  an assignment or transfer shall only
be permitted if it (i) is in respect of Commitments of a minimum amount
equal to at least £500,000 (in the case of the A1 Sterling Tranche), AUD500,000
(in the case of the A1 Australian Dollar Tranche), CAD500,000 (in the case of
the A1 Canadian Dollar Tranche), CHF200,000 (in the case of the A1 Swiss Franc
Tranche), €5,000,000 (in the case of the A1 Euro Tranche),  €200,000 (in the case of the A1 Italian Non-Guaranteed
Tranche) £100,000 (in the case of the A2 Sterling Tranche), AUD100,000 (in the
case of the A2 Australian Dollar Tranche), CAD100,000 (in the case of the A2
Canadian Dollar Tranche), CHF50,000 (in the case of the A2 Swiss Franc
Tranche), €1,000,000 (in the case of the A2 Euro Tranche) and €50,000 (in the
case of the A2 Italian Non-Guaranteed Tranche) or €2,000,000 (in the case of
the C Facility), provided the aggregate Euro Amount of Commitments assigned or
transferred is equal to at least €5,000,000 or (ii) relates to all of a
Bank’s C Commitment;

 

(d)                                 the consent of the Coordinator may
be withheld if the proposed assignee or transferee would, as of the date of any
assignment to it pursuant to this Clause 36 (Assignments
and Transfers) be entitled to receive any greater payment (before
deduction for or on account of any tax) under Clause 14 (Taxes) or Clause 16 (Increased
Costs) than the assigning or transferring Bank would have been
entitled to receive as of such date under such Clauses with respect to the
rights assigned (except to the extent that by reason of a change in law, or the
interpretation or application thereof, after the date the transferring Bank
became a party to this Agreement the amount of such payments to the assignee or
transferee would exceed the amount that would have been payable to the
transferring Bank);

 

(e)                                  in relation to any Swiss Borrower,
the Facility Agent and the Banks will ensure that assignments or transfers may
not be effected if after giving effect to such assignments or transfers there
would be more than 10 Banks (including participants and subparticipants) that
are not Qualifying Banks as defined in relation to any Swiss Borrower;

 

(f)                                    any such Bank wishing to assign or
transfer all or any of its rights and obligations under this Agreement shall
give to each Dutch Borrower not less than five Business Days’ prior written
notice to that effect;

 

(g)                                 at any time whilst it is a
requirement of Dutch law that each Bank is a PMP, any Dutch Borrower may,
within five Business Days of receipt of the relevant 

 

234

 

notice from the Bank under (e) above, object to such assignment or
transfer by notice in writing to such Bank wishing to effect such assignment or
transfer if the relevant assignee or transferee is not a PMP; and

 

(h)                                 if no such objection is received
from each Dutch Borrower within such five Business Day period the relevant Bank
shall be entitled to proceed with such assignment or transfer.

 

36.4                           Original Banks

 

Any assignment or transfer made by a Bank party to
this Agreement on the Closing Date (an “Original Bank”)
prior to the end of the Carve Out Period shall only be permitted if the
Original Banks (and each other bank or financial institution approved for this
purpose by the Original Equity Investors (such approval not to be unreasonably
withheld)) with Commitments as at the Closing Date in relation to the A
Facilities or the C Facility respectively shall hold, in aggregate, not less
than 51 per cent. of the Total A1 Commitments and the Total A2 Commitments
collectively or of the Total C Commitments, as the case may be, and provided
that:

 

(a)                                  each of the Arrangers shall not
reduce their respective Commitments in (i) the A Facility taken as a whole
or (ii) the C Facility individually to less than 17.75 per cent. in
the case of each Mandated Lead Arranger, or 15.5 per cent. in the case of the
Co-Arranger of (x) the aggregate of the Total A1 Commitments and the
Total A2 Commitments or (y) the Total C Commitments except with the
prior consent of the other Arrangers (such consent not to be unreasonably
withheld, delayed or conditioned); and

 

(b)                                 if any of the Facility Agent, the
Security Agent or any of the Arrangers wishes to assign or transfer any part of
its Commitment, it must first offer each of the others a pro rata share of such
transfer or assignment (providing reasonable details of the same), which offer
shall be deemed to have been declined if not accepted in writing within three
Business Days.

 

36.5                           Assignments by Banks

 

Save as otherwise provided in an Australian Finance
Document, if any Bank assigns all or any of its rights and benefits under the
Finance Documents in accordance with Clause 36.3 (Assignments
and Transfers by Banks), then, unless and until the assignee has
delivered a notice to the Facility Agent confirming in favour of the Facility
Agent, the Security Agent, the Arrangers and the other Banks and any relevant
L/C Issuer that it shall be under the same obligations towards each of them as
it would have been under if it had been an original party hereto as a Bank
(whereupon such assignee shall become a party hereto as a “Bank”),
the Facility Agent, the Security Agent, the Arrangers or the other Banks and
any relevant L/C Issuer shall not be obliged to recognise such assignee as
having the rights against each of them which it would have had if it had been
such a party hereto.  Any assignment
shall be notified by bailiff (huissier) to the relevant French Borrowers in
accordance with article 1690 of the French Civil Code at the initiative and at
the cost of the assignee.

 

235

 

36.6                           Transfers by Banks

 

Save as otherwise provided in an Australian Finance
Document, if any Bank wishes to transfer all or any of its rights, benefits
and/or obligations under the Finance Documents as contemplated in
Clause 36.3 (Assignments and Transfers by Banks),
then such transfer may be effected by the delivery to the Facility Agent of a
duly completed Transfer Certificate executed by such Bank and the relevant Transferee
in which event, on the later of the Transfer Date specified in such Transfer
Certificate and the fifth Business Day after (or such earlier Business Day
endorsed by the Facility Agent on such Transfer Certificate falling on or
after) the date of delivery of such Transfer Certificate to the Facility Agent:

 

(a)                                  to the extent that in such Transfer
Certificate the Bank party thereto seeks to transfer by novation its rights,
benefits and obligations under the Finance Documents, each of the Obligors and
such Bank shall be released from further obligations towards one another under
the Finance Documents and their respective rights against one another shall be
cancelled (such rights and obligations being referred to in this
Clause 36.6 as “discharged rights and
obligations”);

 

(b)                                 each of the Obligors and the
Transferee party thereto shall assume obligations towards one another and/or
acquire rights against one another which differ from such discharged rights and
obligations only insofar as such Obligor and such Transferee have assumed
and/or acquired the same in place of such Obligor and such Bank;

 

(c)                                  the Facility Agent, the Security
Agent, the Arrangers, such Transferee, the other Banks and any relevant L/C
Issuer shall acquire the same rights and benefits and assume the same
obligations between themselves as they would have acquired and assumed had such
Transferee been an original party hereto as a Bank with the rights, benefits
and/or obligations acquired or assumed by it as a result of such transfer and to
that extent the Facility Agent, the Arrangers, the relevant Bank and any
relevant L/C Issuer shall each be released from further obligations to each
other under the Finance Documents; and

 

(d)                                 such Transferee shall become a party
hereto as a “Bank”.

 

Any transfer by a Bank of all or any of its rights,
benefits and/or obligations under the Finance Documents in accordance with this
Clause 36.6 (Transfers by Banks) shall be
notified by bailiff (huissier) to the relevant French Borrowers in accordance
with article 1690 of the French Civil Code at the initiative and at the cost of
the assignee.

 

For the purposes of article 1278 of the French Civil
Code and article 1278 of the Belgian Civil Code, it is expressly agreed that
the security interests created pursuant to the Security Documents shall be
preserved for the benefit of the Transferee and all other Finance Parties.

 

36.7                           Assignment and Transfer Fees

 

On the date upon which an assignment takes effect
pursuant to Clause 36.5 (Assignments by Banks)
or a transfer takes effect pursuant to Clause 36.6 (Transfers

 

236

 

by Banks) the relevant
assignee or Transferee shall pay to the Facility Agent for its own account a
fee of €2,000, provided that no such fee shall be payable in connection with
any such assignment or transfer pursuant to the primary syndication of the
Facilities or any such assignment or transfer by a Bank to its affiliate.

 

36.8                           Disclosure of Information

 

Any Finance Party may disclose to:

 

(a)                                  any person to (or through) whom such
Finance Party assigns or transfers (or may potentially assign or transfer) all
or any of its rights, benefits and obligations under the Finance Documents in
accordance with the terms of the Finance Documents and who agrees to comply
with the provisions of this Clause 35;

 

(b)                                 any person with (or through) whom
such Finance Party enters into (or may potentially enter into) any
sub-participation in relation to, or any other transaction under which payments
are to be made by reference to, this Agreement in accordance with the terms of
the Finance Documents and who agrees to comply with the provisions of this
Clause 35;

 

(c)                                  its respective accountants,
attorneys and other advisors (provided such persons are made aware of the
confidential nature of the information disclosed); or

 

(d)                                 any person to whom information may
be required to be disclosed in compliance with any request or requirement of
any central bank, fiscal, monetary or other relevant authority or as may be,
compelled in any judicial or administrative proceeding or as otherwise required
by law provided that such Finance Party, acting reasonably, notifies the Parent
of any disclosure pursuant to this paragraph (d) as far in advance as
is reasonably practicable under such circumstances (save where such
notification is prohibited by applicable law or where such disclosure is made
as part of a Finance Party’s reporting obligations to a central bank, fiscal,
monetary or other relevant authority); or

 

(e)                                  any Rating Agency in connection with
any Permitted Securitisation if, if to do so is consistent with such Rating
Agency’s practice, it agrees to be bound by the provisions of this
Clause 36.8.

 

such information about any Obligor or the Group and
the Finance Documents as such Finance Party, acting reasonably, shall consider
appropriate, but shall otherwise keep confidential any written or oral
information provided to it by or on behalf of any member of the Group, any
other Obligor or any Original Equity Investor pursuant to or in connection with
the Finance Documents, notwithstanding Clause 36.6 (Transfers by
Banks) or any other term of any other Finance Document which
purports to release Finance Parties from their obligations under this
Clause 36.8.

 

237

 

36.9                           The Register

 

(a)                                  The Facility Agent, acting for this
purpose as the agent of the Obligors, shall maintain at its address referred to
in Clause 42 (Notices):

 

(i)                                   a copy of each notice referred to in
Clause 36.5 (Assignments by Banks) and each
Transfer Certificate referred to in Clause 36.6 (Transfers by
Banks) delivered to and accepted by it; and

 

(ii)                                with respect to each Facility, a
register for the recording of the names and addresses of the Banks and the
Commitment in the relevant Designated Currency of, and principal amount owing
in the relevant Designated Currency to, each Bank from time to time (the “Register”) under such Facility.

 

The entries in the Register shall be conclusive and
binding for all purposes, absent manifest error, and the Obligors, the Facility
Agent and the Banks shall treat each person whose name is recorded in the
Register as a Bank hereunder for all purposes of this Agreement.  The Register shall be available for inspection
by any Obligor or any Bank at any reasonable time and from time to time upon
reasonable prior notice.

 

(b)                                 Each party to this Agreement
irrevocably authorises the Facility Agent to make the relevant entry in the
Register on its behalf for the purposes of this Clause 36.9 without any
further consent of, or consultation with, such party.

 

36.10                     Affiliates/Branches

 

(a)                                  Each Bank may discharge its
obligations in respect of an Advance or Letter of Credit under this Agreement
by nominating a branch or affiliate of such Bank to participate in that Advance
or Letter of Credit.

 

(b)                                 A Bank may nominate a branch or
affiliate to participate in one or more Advances or Letters of Credit:

 

(i)                                     in this Agreement; or

 

(ii)                                  in the Transfer Certificate pursuant
to which such Bank becomes party to this Agreement; or

 

(iii)                               in the case of a branch by
subsequent notice to the Facility Agent.

 

(c)                                  Any branch or affiliate nominated by
a Bank to participate in an Advance or Letter of Credit shall:

 

(i)                                    participate in compliance with the
terms of this Agreement; and

 

(ii)                               be entitled, to the extent of its
participation, to all the rights and benefits of a Bank under the Finance
Documents.

 

(d)                                 If (other than pursuant to
Clause 18.1 (Mitigation)) a Bank nominates a
branch or affiliate and the effect of such nomination, as of the date of
nomination,

 

238

 

would be to cause any Obligor to become obliged to pay any additional
amount under Clause 14 (Taxes) or
Clause 16 (Increased Costs) which it would
not have been obliged to pay if such Bank had not nominated such branch or
affiliate such Obligor shall not be obliged to pay such amount.

 

(e)                                  If a Bank nominates an affiliate,
that Bank and that affiliate:

 

(i)                                 will be treated as having a single
Commitment but, subject as provided in paragraph (ii) below, shall
for all other purposes be treated as separate Banks; and

 

(ii)                              will be regarded as a single Bank
for the purpose of voting in relation to any matter in connection with the
Finance Documents.

 

(f)                                    A Bank may only nominate a branch or
an affiliate under this Clause 36.10 to participate in an Advance that is
made to a Dutch Borrower, if such branch or affiliate is a PMP.

 

36.11                     Assignments and Transfers of Loan
Notes

 

(a)                                  Whenever a Bank, in relation to an
Advance made to an Australian Borrower assigns or transfers its rights and
benefits, or its rights, benefits and obligations, under this Agreement in
accordance with this Clause 36 (Assignments and Transfers)
and under the provisions of the relevant Australian Finance Document, it shall
simultaneously transfer to the assignee or transferee the Loan Notes issued by
the Australian Borrower that correspond to such Advance in a corresponding
principal amount to the principal amount of such Advance assigned or
transferred in accordance with the Loan Note Deed Poll.

 

(b)                                 A Bank may only transfer its rights
and benefits under a Loan Note if it simultaneously assigns or transfers to the
assignee or transferee its corresponding rights and benefits under this
Agreement.

 

(c)                                  The Facility Agent shall make
appropriate entries in the Loan Note Register in respect of any assignment or
transfer referred to in this Clause 36.11 at the time it receives the
notice from the assignee referred to in Clause 36.5 (Assignments
by Banks) or on the date on which such transfer takes effect in
accordance with Clause 36.6 (Transfers by Banks).

 

(d)                                 A Bank transferring a Loan Note is
taken to remain the holder of such Loan Note until the name of the transferee
is entered in the Loan Note Register in respect of such Loan Note.

 

36.12                   Application to Canadian Sale Right

 

Clauses 36.2 (Assignments
and Transfers by Obligors) to 36.7 (Assignment
and Transfer Fees) inclusive shall not apply in the event the
Canadian Permitted Bank exercises its rights under Clause 23.20 (Exercise of Sale Right).

 

239

 

37.                               CHANGE OF
CURRENCY

 

(a)                                  Unless otherwise prohibited by law,
if more than one currency or currency unit are at the same time recognised by
the central bank of any country as the lawful currency of that country, then:

 

(i)                                    any reference in the Finance
Documents to, and any obligations arising under the Finance Documents in, the
currency of that country shall be translated into, or paid in, the currency or
currency unit of that country designated by the Facility Agent acting
reasonably (after consultation with the Parent); and

 

(ii)                                 any translation from one currency or
currency unit to another shall be at the official rate of exchange recognised
by the central bank for the conversion of that currency or currency unit into
the other, rounded up or down by the Facility Agent (acting reasonably).

 

(b)                                 If a change in any currency of a
country occurs, this Agreement will, to the extent the Facility Agent (acting
reasonably and after consultation with the Parent) specifies to be necessary,
be amended to comply with any generally accepted conventions and market
practice in the relevant interbank market and otherwise to reflect the change
in currency.

 

38.                               ADDITIONAL
BORROWERS

 

38.1                           Request for Additional Borrower

 

The Parent may request that, on or following the
Closing Date:

 

(a)                                  any A1 Eligible Borrower becomes an
Additional Borrower under the A1 Facility;

 

(b)                                 any A2 Eligible Borrower becomes an
Additional Borrower under the A2 Facility; or

 

(c)                                  any C Eligible Borrower becomes an
Additional Borrower under the C Facility,

 

in each case by delivering to the Facility Agent a
Borrower Accession Memorandum and, subject to the terms of the proviso to
Clause 21.16(a) (Group Acceding Guarantors),
if such Additional Borrower is not an Additional Guarantor, a Guarantor
Accession Memorandum duly executed by the Parent and such Additional Borrower,
together with the documents and other evidence listed in Part 1 of
Schedule 8 (Additional Conditions Precedent)
in relation to such Additional Borrower.

 

38.2                           Borrower Conditions Precedent

 

Any Eligible Borrower in respect of which the Parent
has delivered a Borrower Accession Memorandum to the Facility Agent pursuant to
Clause 38.1 (Request for Additional Borrower),
shall become an Additional Borrower and assume all the rights, benefits and
obligations of a Borrower as if it had been an Original Borrower on the date on
which the Facility Agent notifies the Parent that:

 

240

 

(a)                                  the
Facility Agent has received, in form and substance reasonably satisfactory to
it, all documents and other evidence listed in Part 1 of Schedule 8 (Additional Conditions Precedent) in relation to such
Eligible Borrower; and

 

(b)                                 in
the case of any Financeco or SPV which is seeking to accede as an Additional
Borrower, such Eligible Borrower shall have provided the Finance Parties with
additional covenants relating to maintaining itself as a separate entity,
limitations on debt which it may incur and limitations on its activities, in
each case, as the Facility Agent may reasonably request in connection with any
proposed Take-Out Financing,

 

unless on such date an Event of Default or Potential
Event of Default is continuing or would occur as a result of such Eligible
Borrower becoming an Additional Borrower.

 

38.3                           Restrictions on Lending to Certain
Borrowers

 

If at any time any Bank is prohibited either by law
or pursuant to any requirement of any central bank or other fiscal, monetary or
other authority from making Advances to an Eligible Borrower organised under
the laws of a particular jurisdiction or from having any rights or obligation
under this Agreement in respect of Advances to such an Eligible  Borrower, such Bank shall, subject to
Clause 18 (Mitigation and Other Provisions Relating to
Taxes and Increased Costs), notify the Facility Agent and the Parent
prior to the date on which such Eligible Borrower accedes to this Agreement,
and such Bank:

 

(a)                                  will not be obliged to make Advances
to such Eligible Borrower;

 

(b)                                 will be entitled to enter into a
funded participation agreement with another Bank or the Facility Agent using
the Loan Market Association Terms and Conditions For Funded Participations
(Par) or otherwise on terms agreed with such other Bank or the Facility Agent
or as applicable, as lender of record with respect to such Borrower (such
person, the “Participation  Grantor”) to make such Advances on its
behalf; and

 

(c)                                  shall, in the event that a funded
participation agreement is entered into in accordance with Clause 38.3(b),
fund its participation in each such Advance by making funds available to the
Participation Grantor subject to and on the terms of such agreement.

 

38.4                           Resignation of a Borrower

 

(a)                                  Subject to paragraphs (b) and
(c) below, if at any time a Borrower is under no actual obligation as a
Borrower in relation to a particular Facility under or pursuant to any Finance
Document, the Parent may request that such Borrower shall cease to be a
Borrower in respect of that Facility by delivering to the Facility Agent a
Resignation Notice.  Such Resignation
Notice shall be accepted by the Facility Agent on the date on which it notifies
the Parent that it is satisfied (acting reasonably) that such Borrower is under
no such actual obligation as a Borrower in relation to that particular Facility
under or pursuant to any Finance Document and such Borrower shall immediately
cease to be such a Borrower and shall have no further rights, benefits or 

 

241

 

obligations as a Borrower in relation to that Facility under the
Finance Documents provided that if such Borrower is
also a Borrower under a different Facility and a Guarantor at such time, its
obligations in its capacity as Guarantor of the Facilities shall continue to be
legal, valid, binding and enforceable and in full force and effect and the
amount guaranteed by it as a Guarantor shall not be decreased upon its
resignation as a Borrower of the relevant Facility.

 

(b)                                 Upon any prepayment and cancellation
of the Belgian Euro Amounts in accordance with the terms of this Agreement, the
Parent shall deliver a Resignation Notice to the Facility Agent in relation to
each Belgian Borrower.  Such Resignation
Notice shall be accepted by the Facility Agent on the date on which it notifies
the Parent that it is satisfied (acting reasonably) that each such Belgian
Borrower is under no such actual obligation as a Borrower under or pursuant to
any Finance Document and each such Belgian Borrower shall immediately cease to
be a Borrower and shall have no further rights, benefits or obligations as a
Borrower under the Finance Documents.

 

(c)                                  Upon any prepayment and cancellation
of the the A1 Canadian Dollar Tranche and A2 Canadian Dollar Tranche in
accordance with the terms of this Agreement, the Parent shall deliver a
Resignation Notice to the Facility Agent in relation to each Canadian
Borrower.  Such Resignation Notice shall
be accepted by the Facility Agent on the date on which it notifies the Parent
that it is satisfied (acting reasonably) that each such Canadian Borrower is
under no such actual obligation as a Borrower under or pursuant to any Finance
Document and each such Canadian Borrower shall immediately cease to be a
Borrower and shall have no further rights, benefits or obligations as a
Borrower under the Finance Documents.

 

38.5                           Termination of a Borrower’s rights

 

(a)                                  Notwithstanding any other provision
to the contrary in this Agreement, upon a Financeco or an SPV
other than EFS (the “Applicable Company”)
becoming a Borrower under
a Facility, if its Related Opco is a Borrower under such Facility, such Related
Opco (the “Applicable Opco”)
shall, from the Applicable Utilisation Date:

 

(i)                                     immediately cease to have any rights
to request Advances under this Agreement, other than in relation to:

 

(A)                              Rollover Advances during the
repayment period permitted in paragraph (ii) below; and/or

 

(B)                                new Advances to such Applicable Opco
utilised during a period of:

 

(1)                                  three months commencing on the
Applicable Utilisation Date, to the extent that any new Advances are requested
by such Applicable Opco in order to fund the purchase price of New Vehicles to
be purchased by it from a Vehicle Manufacturer or a Vehicle Dealer which has 

 

242

 

not yet
entered into a Qualified Vehicle Manufacturer Contract with that Applicable
Company; and

 

(2)                                  six
months commencing on the Applicable Utilisation Date, to the extent that any
Advances are requested by such Applicable Opco in order to fund the purchase
price of New Vehicles ordered by it from a Vehicle Manufacturer or a Vehicle
Dealer which has entered into a Qualified Vehicle Manufacturer/Dealer Contract
with that Applicable Company but where (x) such New Vehicles have been
ordered by the Applicable Opco and the Vehicle Manufacturer or a Vehicle Dealer
does not permit the order (and delivery and purchase) of such vehicles to be
transferred to that Applicable Company due to reasons relating to the Vehicle
Manufacturer’s or Vehicle Dealer’s information technology systems, operating
procedures or for any other reason reasonably determined by the Vehicle
Manufacturer or Vehicle Dealer and/or (y) the transfer of the relevant
order to that Vehicle Manufacturer from the Applicable Opco to the Applicable
Company would materially delay the delivery of the New Vehicles in question to
the Applicable Company or would in the opinion of the Applicable Company
(acting reasonably) be otherwise materially prejudicial to it,

 

notwithstanding
that any such new Advances must be repaid within the repayment period permitted
in paragraph (ii) below; and

 

(ii)                                  repay all outstanding Advances made
to it within 12 months or (aa) in the case of A1 Advances or A2 Advances the
proceeds of which were used to finance or re-finance the purchase price of Risk
Vehicles or trucks and/or vans owned by any Opco organised in Europe,
18 months, (bb) in the case of A1 Advances or A2 Advances made to a
Canadian Opco or an Australian Opco the proceeds of which were used to finance
or re-finance Risk Vehicles, 24 months, or (cc) in the case of A1 Advances
or A2 Advances made to a German Borrower the proceeds of which were used to
finance or re-finance the purchase price of heavy trucks, 36 months, in each case
from the Applicable Utilisation Date.

 

(b)                                 If any Eligible Borrower, after
becoming an Additional Borrower, ceases to satisfy the Eligibility Criteria (in
this paragraph (b), a “Failure”),
such Borrower will thereupon cease to have any rights to request Advances under
this Agreement until such time as it again satisfies the Eligibility Criteria
provided that if such Failure continues for a period of more than 30 days, such
Borrower shall immediately repay all Advances made to it.

 

(c)                                  Any Take-Out Borrower which is the
subject of a Take-Out Financing in respect of all its assets that would
otherwise have formed part of its Borrower 

 

243

 

Asset Value shall, upon the consummation of such Take-Out Financing,
cease to be entitled to request Advances under this Agreement.

 

For the purposes of this Clause 38.5, “Applicable Utilisation Date” means, (i) in relation to
an Applicable OpCo  other than an
Applicable OpCo established in Switzerland and Germany and in respect of the
first Advance made to an Applicable Company, the Utilisation Date in respect of
the first Advance made to such Applicable Company, (ii) in relation to an
Applicable OpCo established in Germany and in respect of the first Advance made
to an Applicable Company  established in
Ireland in relation to its Core Country Fleet located in Germany, the
Utilisation Date in respect of the first Advance made to such Applicable
Company in relation to its Core Country Fleet located in Germany and (iii) in
relation to the Applicable OpCo established in Switzerland and in respect of
the first Advance made to an Applicable Company established in Ireland in
relation to its Core Country Fleet located in Switzerland,  the Utilisation Date in respect of the first
Advance made to such Applicable Company in relation to its Core Country Fleet
located in Switzerland.

 

39.                               ADDITIONAL
GUARANTORS, RESIGNATION OF GUARANTORS AND DESIGNATED OBLIGORS; CHANGE OF
COORDINATOR

 

39.1                           Request for Additional Guarantor

 

The Parent may request that any of its subsidiaries
an Orphan SPV or an Orphan Financeco becomes an Additional Guarantor by
delivering to the Facility Agent a Guarantor Accession Memorandum duly executed
by the Parent and such subsidiary, Orphan SPV or Orphan Financeco as the case
may be, together with the documents and other evidence listed in Part 1 of
Schedule 8 (Additional Conditions Precedent)
in relation to such subsidiary, Orphan SPV or Orphan Financeco as the case may
be.

 

39.2                           Guarantor Conditions Precedent

 

A subsidiary of the Parent, an Orphan SPV or an
Orphan Financeco, in respect of which the Parent has delivered a Guarantor
Accession Memorandum to the Facility Agent, shall, subject to the terms of such
Guarantor Accession Memorandum, became an Additional Guarantor and assume all
the rights, benefits and obligations of a Guarantor as if it had been an
original party hereto as a Guarantor on the date on which the Facility Agent
notifies the Parent that it has received, in form and substance reasonably
satisfactory to it, all the documents and other evidence listed in Part 1
of Schedule 8 (Additional Conditions
Precedent) in relation to such subsidiary, or Orphan SPV or on
Orphan Financeco.

 

39.3                           Resignation of a Guarantor

 

The Parent may request that a Guarantor (other than
the Parent) which is not also a Borrower ceases to be a Guarantor by delivering
to the Facility Agent a Resignation Notice. 
The Facility Agent shall accept such Resignation Notice and notify the
Parent of its acceptance (whereupon such Guarantor shall immediately cease to
be a Guarantor and shall have no further rights, benefits or obligations
hereunder save for those which arose prior to such date) unless on such date an
Event of Default or Potential Event of Default is continuing.

 

244

 

39.4                          Request for Designated Obligor

 

The Parent may request that any of its subsidiaries
(other than any Borrower or Guarantor) become a Designated Obligor by
delivering to the Facility Agent the documents and other evidence listed in Part 2
of Schedule 8 (Additional Conditions
Precedent) in relation to such subsidiary.

 

39.5                           Designated Obligor Conditions
Precedent

 

A subsidiary of the Parent shall become a Designated
Obligor for the purposes of this Agreement on the date on which the Facility
Agent notifies the Parent that (a) it has accepted the Parent’s request to
nominate such subsidiary as a Designated Obligor, and (b) it has received,
in form and substance reasonably satisfactory to it, all the documents and
other evidence listed in Part 2 of Schedule 8 (Additional
Conditions Precedent) in relation to such subsidiary.

 

39.6                           Cessation of a Designated Obligor

 

The Parent may request that a Designated Obligor
ceases to be a Designated Obligor by delivering to the Facility Agent a
Resignation Notice.  The Facility Agent
shall accept such Resignation Notice and notify the Parent of its acceptance
(whereupon such Designated Obligor shall immediately cease to be a Designated
Obligor for the purposes of this Agreement) if it has no outstanding
obligations or rights under a Designated Obligor Intercompany Loan Agreement,
unless on such date an Event of Default or Potential Event of Default is continuing.

 

39.7                           Change of Coordinator

 

(a)                                  The Parent may request that any of
its subsidiaries acceptable to the Facility Agent (acting reasonably) becomes
the Coordinator in place of the existing Coordinator and such change shall
become effective upon that subsidiary delivering to the Facility Agent a
Guarantor Accession Memorandum duly executed by the Parent and such subsidiary
together with such other supporting documents as the Facility Agent may
reasonably require and the Facility Agent confirming that such supporting
documents are acceptable to it.

 

(b)                                 Upon satisfaction of the matters set
out in paragraph (a) of this Clause 39.7, the existing
Coordinator shall be released from all future obligations as Coordinator under
the Finance Documents and shall have no further rights as Coordinator.

 

40.                               CALCULATIONS AND
EVIDENCE OF DEBT

 

40.1                           Basis of Accrual

 

(a)                                  Interest, letter of credit
commission and commitment commission shall accrue from day to day and shall be
calculated on the basis of a year of 360 days (or, in the case of (i) any
Advance denominated in sterling, 365 days or (ii) any Advance denominated
in Australian Dollars or Canadian Dollars and with respect to any other fees
payable under any Finance Document, 365 days (or if the applicable year is a leap
year, 366 days) or in any case where market 

 

245

 

practice differs, in accordance with market practice) and the actual
number of days elapsed.

 

(b)                                 For the purposes of the Interest Act
(Canada) and with respect to a Canadian Borrower, (i) whenever any
interest or fee payable in relation to a Canadian Advance or a Canadian Tranche
is calculated using a rate based on a year of 365 or 366 days, as the case may
be, the rate determined pursuant to such calculation, when expressed as an
annual rate, is equivalent to (x) the applicable rate based on a year of
365 or 366 days, as the case may be, (y) multiplied by the actual number
of days in the calendar year in which the period for which such interest or fee
is payable (or compounded) ends, and (z) divided by 365 or 366, as the
case may be, (ii) the principle of deemed reinvestment of interest does
not apply to any interest calculation under this Agreement, and (iii) the
rates of interest stipulated in this Agreement are intended to be nominal rates
and not effective rates or yields.

 

(c)                                  If any provision of this Agreement
would oblige a Canadian Borrower to make any payment of interest or other
amount payable to any Bank in an amount or calculated at a rate that would be
prohibited by applicable law or would result in a receipt by that Bank of
“interest” at a “criminal rate” (as such terms are construed under the Criminal
Code (Canada)), then, notwithstanding such provision, such amount or rate shall
be deemed to have been adjusted with retroactive effect to the maximum amount
or rate of interest, as the case may be, as would not be so prohibited by
applicable law or so result in a receipt by that Bank of “interest” at a
“criminal rate”, such adjustment to be effected, to the extent necessary (but
only to the extent necessary), as follows:

 

(i)                                  first, by reducing the amount or
rate of interest required to be paid to the affected Finance Party hereunder;
and

 

(ii)                               thereafter, by reducing any fees,
commissions, costs, expenses, premiums and other amounts required to be paid to
the affected Finance Party which would constitute interest for purposes of
section 347 of the Criminal Code (Canada).

 

(d)                                 When entering into this Agreement,
the parties hereto have assumed that payment of interest by the Swiss Borrower
payable hereunder is not and will not become subject to Swiss Withholding
Tax.  Therefore, and without prejudice to
the procedures and obligations of Clause 14.1 (Tax Gross-up),
the Swiss Borrower and each of the Guarantor acknowledge and agree that the
interest rates set out in this Agreement shall constitute minimum interests
rate, which, if Swiss Withholding Tax should apply, shall be adjusted as
follows:

 

(i)                                  the Swiss Borrower or, as the case
may be, the Swiss Guarantors will pay such additional amounts as shall be
necessary in order for the net amounts received by the Banks after the
withholding of Swiss Withholding Tax to be equal to the respective amounts of
interest which would otherwise have been receivable in respect of the
Facilities, as the case may be, in the absence of the withholding of Swiss
Withholding Tax and

 

246

 

(ii)                               for this purpose, the Swiss
Withholding Tax shall be calculated on the full grossed-up interest amount at a
rate of 35 per cent. (as of the date of this Agreement), unless a tax ruling
obtained from the Swiss Federal Tax Administration confirms that such rate is,
pursuant to any double-taxation treaty, a specified lower rate in relation to
specified Banks in which case such lower rate shall be applied in relation to
the relevant Bank.

 

As stated in Clause 14.3(d) (Bank’s Tax Status), a Swiss Borrower is not obliged to make
any additional interest payments of any kind if Swiss Withholding Tax applies
due to the fact that there are more than ten Banks which are not Qualifying
Banks in relation to such Swiss Borrower under this Agreement.  This paragraph (d) is therefore not
applicable with regard to any Swiss Obligor in any situation covered by
Clause 14.3 (Bank’s Tax Status), unless such
Swiss Obligor has violated this paragraph (d).

 

40.2                         Quotations

 

Subject to Clause 9 (Market
Disruption and Alternative Interest Rates), if on any occasion a
relevant Reference Bank or Bank fails to supply the Facility Agent with a
quotation required of it under the foregoing provisions of this Agreement, the
rate for which such quotation was required shall be determined from those
quotations which are supplied to the Facility Agent.

 

40.3                        Evidence of Debt

 

Each Bank shall maintain in accordance with its
usual practice accounts evidencing the amounts from time to time lent by and
owing to it hereunder.

 

40.4                        Control Accounts

 

The Facility Agent shall maintain on its books a
control account or accounts in which shall be recorded (a) the amount of
any Advance or Unpaid Sum and the face amount of any Letter of Credit issued
and each Bank’s share therein, (b) the amount of all principal, interest
and other sums due or to become due from an Obligor and each Bank’s share
therein and (c) the amount of any sum received or recovered by the
Facility Agent hereunder and each Bank’s share therein.

 

40.5                        Prima Facie Evidence

 

In any legal action or proceeding arising out of or
in connection with this Agreement, the entries made in the accounts maintained
pursuant to Clause 40.3 (Evidence of Debt)
and Clause 40.4 (Control Accounts)
shall, in the absence of manifest error, be prima facie evidence of the
existence and amounts of the specified obligations of the Obligors.

 

40.6                        Certificates of Banks

 

A certificate of a Bank as to (a) the amount by
which a sum payable to it hereunder is to be increased under Clause 14.1 (Tax Gross-up), (b) the amount for the time being
required to indemnify it against any such cost, payment or liability as is
mentioned in 

 

247

 

Clause 14.2 (Tax
Indemnity) or Clause 16 (Increased Costs)
or (c) the amount of any credit, relief, remission or repayment as is
mentioned in Clause 15.3 (Tax Credit Payment)
or Clause 15.4 (Tax and Other Affairs)
shall, in the absence of manifest error, be prima facie evidence of the
existence and amounts of the specified obligations of the Obligors.

 

40.7                           Facility Agent’s Certificates

 

A certificate of the Facility Agent as to the amount
at any time due from the Borrowers or the Parent hereunder or the amount which,
but for any of the obligations of such Borrower or the Parent hereunder being
or becoming void, voidable, unenforceable or ineffective, at any time would
have been due from the Borrowers hereunder shall, in the absence of manifest
error, be prima facie evidence for the purposes of Clause 24 (Guarantee and Indemnity).

 

40.8                           Letters of Credit

 

A certificate of an L/C Issuer as to the amount paid
out by such L/C Issuer in respect of any Letter of Credit shall, save for
manifest error, be prima facie evidence of the payment of such amounts in any
legal action or proceedings arising in connection therewith.

 

41.                               REMEDIES AND
WAIVERS, PARTIAL INVALIDITY

 

41.1                           Remedies and Waivers

 

No failure to exercise, nor any delay in exercising,
on the part of any Finance Party, any right or remedy hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of any right or
remedy prevent any further or other exercise thereof or the exercise of any
other right or remedy.  The rights and
remedies herein provided are cumulative and not exclusive of any rights or
remedies provided by law.

 

41.2                           Partial Invalidity

 

If, at any time, any provision of the Finance
Documents is or becomes illegal, invalid or unenforceable in any respect under
the law of any jurisdiction, neither the legality, validity or enforceability
of the remaining provisions thereof nor the legality, validity or
enforceability of such provision under the law of any other jurisdiction shall
in any way be affected or impaired thereby.

 

42.                               NOTICES

 

42.1                           Communications in Writing

 

Each communication to be made under the Finance
Documents shall be made in writing and, unless otherwise stated, shall be made by
fax or letter.

 

42.2                           Addresses

 

(a)                                  Except as otherwise provided in
paragraph (b) below, any communication or document to be made or
delivered pursuant to the Finance Documents shall (unless the recipient of such
communication or document has, by 15 days’ 

 

248

 

written notice to the Facility Agent specified another address or fax
number) be made or delivered to the address or fax number:

 

(i)                                     in the case of the Facility Agent
and the Global Coordinator identified with their respective name below;

 

(ii)                                  in the case of the Original
Obligors, notified in writing to the Coordinator:

 

Attention of: Nuns Moodliar, Vice President, Legal &
Corporate Affairs Secretary

 

Address:                                               Hertz
Europe Limited

Hertz House

11 Vine Street

Uxbridge, Middlesex  TW5 9SW

England UB8 1QE

 

Fax number:           +44 (0) 20 8750
3728

Email:                      nmoodliar@hertz.com

 

(iii)                               in the case of each Bank or L/C
Issuer, notified in writing to the Facility Agent prior to the Closing Date
(or, in the case of a Transferee, at the end of the Transfer Certificate to
which it is a party as Transferee); and

 

(iv)                              in the case of each Additional
Obligor, in the relevant Accession Memorandum,

 

provided that not more than one address may be
specified by each party pursuant to this paragraph (a) at any time.

 

(b)                                 Any Asset Report or Notification to
be delivered pursuant to the terms of this Agreement (unless the recipient of
such Asset Report or Notification has, by 15 days’ written notice to the
Facility Agent specified another address or fax number) be made or delivered to
the address or fax number:

 

(i)                                     in the case of the Facility Agent
to:

 

(A)          Attention of: Jérôme
Eschbach / Violaine Delaunay

 

Fax number:                +33 (0)1 42 98 69
19 / +33 (0)1 42 98 69 19

 

Phone number:           +33 (0)1 42 98 19
40 / +33 (0)1 43 16 97 25

 

E-mail:                          jerome.eschbach@bnpparibas.com

 

violaine.delaunay@bnpparibas.com

 

249

 

(B)           Securitisation Management
Team

 

Fax number:                +33 (0)1 42 98 69
19

 

Phone number:           +33 (0)1 43 16 97
25

 

E-mail                           paris_bfi_sec_hz@bnpparibas.com;

 

(ii)                                  in the case of The Royal Bank of
Scotland plc to:

 

(A)                              Attention
of: RBS Asset Securitisation Paul Shah / Gareth Davison

 

Fax number:                + 44 20 7085 5395

 

Phone number:           + 44 20 7085 8132
/ +44 20 7085 3854

 

E-mail:                          securitisation.support@rbos.com

 

(B)           Attention of: Massimo De
Matteis and Sara Brugora

 

Fax number:                +39 02 625 1240 / +39 02 625 1220

 

Phone number:

 

E- mail:                         Massimo.De.Matteis@rbos.com

 

                                        Sara.Brugora@rbos.com
A

 

(C)           Attention of: LAU Structured
Finance Team

 

Fax number:                +44 20 7615 0135

 

Phone number:           +44 20 7672 6305
/ +44 20 7672 6317/ + 44 20 7672 6315

 

E-mail:                          Jackson.Locke@rbos.com

                                        Patrick.McCormack@rbos.com

                                        Natalie.Wilkinson@rbos.com

 

(D)          Attention of: Georgett
Ellias/ Damien Selakovic

 

Fax number:                +61 2 9004 2147

 

Phone number:           +61 2 9004 2130 /
61 2 9004 2131

 

E-mail:                          fmsydassetsecmgt@rbos.com

 

250

 

(E)                                 Attention
of: RBS Structured Finance/ Risk & Portfolio Management, Moya Kitchen

 

Fax Number:               +44 (0)124 222
4867

 

Phone Number:          +44 (0)124 224
0402

 

E-mail:                          moya.kitchen@rbs.co.uk;

 

(iii)                               in the case of CALYON, to:

 

(A)                              Attention
of Securitisation Team / Christophe Champion / Nathalie Mosser

 

Fax number:  +44 20 7214 6697 / +
33 (0) 1 57 87 17 54 (respectively)

 

Phone number: + 44 20 7214 54 72 / + 33 (0) 1 41 89
16 48 (respectively)

 

E-mail:         christophe.champion@calyon.com

 

                        nathalie.mosser@calyon.com

 

(B)                                Attention
of Securitisation Management Team / Edouard Legrand

 

Fax number:  + 33
(0) 1 57 87 17 58

 

Phone number: + 33 (0) 1 57 87 17 70

 

E-mail:         Edouard.Legrand@calyon.com

 

(C)           Attention of Brigitte
Boddaert

 

                                                Fax
number: + 33 (0) 1 41 89 47 90

 

                                                Phone
number : +33 (0) 1 41 89 37 70

 

E-mail:         brigitte.boddaert@calyon.com

 

(D)          Attention
of Virginie Holton

 

                Fax
number : + 33 (0) 1 41 89 47 90

 

                Phone
number: + 33 (0) 1 41 89 14 55

 

E-mail:         virginie.holton@calyon.com

 

251

 

(E)                                Attention
of Raffaella Restelli

 

                Fax
number: +39 02 72303 317

 

                Phone
number: +39 02 72303 507

 

E-mail:         raffaella.restelli@it.calyon.com

 

(F)                                Attention
of Massimo Perversi.

 

Fax number: +39 02 72303 317

 

Phone number: +39 02 72303 267

 

E-mail: massimo.perversi@it.calyon.com

 

(G)                               Attention
of Steve Hatch / Clem McHugh / Don Finkel

 

Fax number: +44 20 7214 6761 / 6816

 

Phone number: +44 20 7214 6720 / +44 20 7214 6724 /
+44 20 7214 6654 (respectively)

 

(H)                              Attention
of Banco Calyon Brasil/ Joao Carlos Celli

 

Fax number: +
55 (11) 3896-6252

 

Phone number:
+ 55 (11) 3896-6448

 

E-mail:         joao.celli@br.calyon.com

 

(iv)                              in the case of any other Bank, in
accordance with the provisions of Clause 42 (Notices).

 

42.3                           Delivery

 

Any communication or document to be made or
delivered by one person to another pursuant to the Finance Documents shall:

 

(a)                                  if by way of fax, be deemed to have
been received when transmission has been completed; and

 

(b)                                 if by way of letter, be deemed to
have been delivered when left at the relevant address or, as the case may be,
ten days after being deposited in the post postage prepaid in an envelope
addressed to it at such address,

 

provided that any communication or document to be
made or delivered to the Facility Agent or Security Agent shall be effective
only when received by its agency division and then only if the same is
expressly marked for the attention of the department or officer identified with
the Facility Agent’s or Security Agent’s signature below (or such other
department or officer as the Facility Agent or Security Agent, as the case may
be, shall from time to time specify for this purpose).

 

252

 

42.4                           Electronic communication

 

(a)                                  Any communication to be made between
the Facility Agent and a Bank under or in connection with the Finance Documents
may be made by electronic mail or other electronic means, if the Facility Agent
and the relevant Bank:

 

(i)                                  agree that, unless and until
notified to the contrary, this is to be an accepted form of communication;

 

(ii)                               notify each other in writing of their
electronic mail address and/or any other information required to enable the
sending and receipt of information by that means; and

 

(iii)                            notify each other of any change to
their address or any other such information supplied by them.

 

(b)                                 Any electronic communication made
between the Facility Agent and a Bank will be effective only when actually
received in readable form and in the case of any electronic communication made
by a Bank to the Facility Agent only if it is addressed in such a manner as the
Facility Agent shall specify for this purpose.

 

42.5                           English Language

 

Each communication and document made or delivered by
one party to another pursuant to the Finance Documents shall be in the English
language or accompanied by a translation thereof into English certified (by an
officer of the person making or delivering the same) as being a true and
accurate translation thereof.

 

42.6                           Notification of Changes

 

Promptly upon receipt of notification of a change of
address or fax number pursuant to Clause 42.2 (Addresses)
or changing its own address or fax number the Facility Agent shall notify the
other parties hereto of such change.

 

42.7                           Deemed Receipt by the Obligors

 

Any communication or document made or delivered to
the Parent in accordance with Clause 42.3 (Delivery)
shall be deemed to have been made or delivered to each of the Obligors.

 

43.                               COUNTERPARTS

 

This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
instrument.

 

44.                               AMENDMENTS

 

44.1                           Amendments

 

(a)                                  The Facility Agent, if it has the
prior consent of an Instructing Group in respect of each Facility, and the
Coordinator (acting on behalf of each of the 

 

253

 

Obligors) may from time to time agree in writing to amend the Finance
Documents or to waive, prospectively or retrospectively, any of the
requirements of the Finance Documents and any amendments or waivers so agreed
shall be binding on all parties to this Agreement, subject to Clause 44.2
(Amendments Requiring Different Consent Levels).

 

(b)                                 Without prejudice to the foregoing:

 

(i)                                     the German Obligors hereby expressly
grant a power of attorney to the Coordinator acting individually, which the
Coordinator accepts, to agree in writing to amend the Finance Documents or to
waive, prospectively or retrospectively, any of the requirements of the Finance
Documents and for this purpose exempt the Coordinator from the restrictions of
section 181 of the German Civil Code and any amendments or waivers so agreed
shall be binding on all the Finance Parties, subject to Clause 44.2 (Amendments Requiring Different Consent Levels); and

 

(ii)                                  the Coordinator may expressly grant
sub-attorney for the purposes referred to above, and it may exempt any such
sub-attorneys from the restrictions of Section 181 of the German Civil
Code.

 

(c)                                  The Facility Agent may effect, on
behalf of any Finance Party, any amendment or waiver permitted by this
Clause 44 (Amendments) and any such amendment
or waiver shall be binding on each such Finance Party.

 

(d)                                 The Facility Agent shall promptly
notify the other parties to this Agreement of any amendments or waiver effected
by it under paragraph (c) above.

 

44.2                        Amendments Requiring Different
Consent Levels

 

No amendment of any of the Finance Documents or
waiver of any of the requirements of the Finance Documents shall:

 

(a)                                  amend or waive any of the provisions
of Clause 33 (Sharing) or
this Clause 44 without the consent of all the Banks;

 

(b)                                 reduce the amount or extend the
scheduled date of maturity of any Advance or any scheduled instalment of
principal thereof, or change the currency (other than as contemplated hereby)
in which such Advance is expressed to be payable, without the consent of all of
the Banks;

 

(c)                                  decrease the Applicable Margin or
L/C Commission Rate or reduce the amount of any scheduled payment of interest
or of any fee payable to any Finance Party, or extend the scheduled date of
payment of such interest or fee, or change the currency (other than as
contemplated hereby) in which such interest or fee is expressed to be payable,
without the consent of each Finance Party directly affected thereby;

 

(d)                                 increase the amount of any Bank’s
Commitment without the consent of such Bank; or

 

254

 

(e)                                  amend or waive any of the
requirements of any provision of any Finance Document that expressly requires
the consent or approval of all the Banks or a certain percentage of the Banks,
without the consent of all the Banks or that specified percentage,

 

provided that:

 

if a Bank refuses to consent inter alia
to any waiver, amendment or other consent requested under the terms of the
Finance Documents where unanimity is required but an Instructing Group has
consented to such waiver, amendment or consent, the Parent shall have the right
to (x) require that Bank to transfer all (but not part of) its Commitments
to another person identified by the Parent which is willing to accept such
transfer provided further that such transfer is made for cash, at par and
together with all amounts on account of accrued interest, breakage costs and
other sums owing to such Bank in respect of its Commitment so transferred.  Any such transfer shall be carried out in
accordance with Clause 36 (Assignments and Transfers)
or (y) with the consent of an Instructing Group in respect of each
Facility terminate the Commitment of such Bank subject only to repayment in
full of all amounts owing to such Bank under this Agreement.

 

44.3                        Exceptions

 

Notwithstanding any other provisions hereof, neither
the Facility Agent, the Security Agent nor any L/C Issuer shall be obliged to
agree to any such amendment or waiver if the same would:

 

(a)                                  (in respect of the Facility Agent
the Security Agent only) amend or waive this Clause 44 (Amendments), Clause 27 (Costs and
Expenses) or Clause 34 (The Facility Agent, the
Security Agent, the Global Coordinator and the Finance Parties) or
Clause 35 (The Bank and the L/C Issuer); or

 

(b)                                 otherwise amend or waive any of the
Facility Agent’s, the Security Agent or such L/C Issuer’s rights hereunder or
subject the Facility Agent, the Security Agent, the Mandated Lead Arrangers or
such L/C Issuer to any additional obligations hereunder.

 

45.                               LOAN NOTES TO BE
ISSUED BY AUSTRALIAN BORROWERS

 

45.1                        Loan Note Deed Poll

 

(a)                                  Before the Utilisation Date for the
first Advance by a Bank not being a Qualifying Bank (within paragraphs (c)(i) to
(iii) of the definition thereof) in relation to Australian Borrowers, to
any Australian Borrower, such Australian Borrower will execute a Loan Note Deed
Poll and deliver it to the Facility Agent in escrow.  On receipt of the proceeds of the first
Advance to such Australian Borrower, the Facility Agent will date such Loan
Note Deed Poll and such Australian Borrower will be taken to have delivered
unconditionally such Loan Note Deed Poll.

 

255

 

(b)                                 The provisions of this
Clause 45 will only apply where an Advance denominated in Australian Dollars
is made by a Bank not being a Qualifying Bank (within paragraphs (c)(i) to
(iii) of the definition thereof) in relation to Australian Borrowers.

 

45.2                           Issue of Loan Notes

 

On the payment by each Bank not being a Qualifying
Bank (within paragraphs (c)(i) to (iii) of the definition
thereof) in relation to Australian Borrowers of the first Advance to an
Australian Borrower such Australian Borrower will issue Loan Notes for such
Facility (or, in the case of any Facility, the relevant Tranche) to any such
Bank with:

 

(a)                                  a maximum principal amount equal to
the Bank’s Commitment under such Facility or Tranche (as the case may be) and
denominated in the relevant Designated Currency in which the Commitments for
such Facility or Tranche (as the case may be) are denominated; and

 

(b)                                 a principal amount outstanding equal
to the Bank’s Proportion of the principal outstanding under such Facility or
Tranche (as the case may be) from time to time as recorded in the Register
maintained in accordance with Clause 36.9 (The Register)
and Clause 45.6 (Maintenance of Loan Note
Register).

 

45.3                           Redemption of Loan Notes

 

Other than on the Final Maturity Date redemption of
a Loan Note is permitted only to the extent that at all times the Minimum
Principal Loan Note Amount is maintained with respect to such Loan Note.

 

45.4                           Application of funds and update Loan
Note Register

 

On receipt of funds for subsequent Advances under
any Facility, the Facility Agent shall update the principal amount outstanding
under the Loan Notes in the Loan Note Register.

 

45.5                           Establishment of Loan Note Register

 

The Facility Agent shall establish and maintain a
Loan Note Register in the same place in which it maintains the Register under
Clause 36.9 (The Register).

 

45.6                           Maintenance of Loan Note Register

 

(a)                                  If any Loan Notes are issued under
this Clause 45, the Facility Agent shall inscribe the following
information in the Loan Note Register in respect of each Australian Borrower
and the Loan Notes:

 

(i)                                     the maximum principal amount and
outstanding principal amount of the Loan Notes;

 

(ii)                                  the name and address of the initial
Bank and each subsequent Bank entitled to the Loan Notes;

 

256

 

(iii)                           the account or address of the Bank
to which payments are to be made in respect of the Loan Notes and the related
Advance; and

 

(iv)                              details of all transfers or
assignments, advances, repayments, prepayments and redemption of all or part of
the Loan Notes and any reduction of the maximum principal amount of the Loan
Notes; and

 

(v)                                 any other information which the
Facility Agent determines should be included in the Loan Note Register in
respect of the Loan Notes.

 

(b)                                 The Facility Agent shall promptly
update the Loan Note Register to record changes.

 

45.7                           Loan Note Register is paramount

 

(a)                                  Each Australian Borrower, the
Facility Agent and the Security Agent shall recognise the Bank whose name
appears in the Loan Note Register as the absolute owner of Loan Notes inscribed
in its name on the Loan Note Register without regard to any other record or
instrument.

 

(b)                                 No notice of any trust or other
interest in any Loan Note will be entered on the Loan Note Register.  Neither the Australian Borrower, the Facility
Agent nor the Security Agent need take notice of any other interest in, or
claim to, a Loan Note, except as ordered by a court of competent jurisdiction
or required by law.

 

45.8                           Offers of Loan Notes

 

The Australian Borrower must ensure that it or any
agent or other party acting on its behalf offers each Loan Note in a manner
which does not require disclosure under Part 6D.2 of the Australian
Corporations Act 2001 (Cth).

 

45.9                           Qualifying Bank Representation

 

Each Bank represents that it is a Qualifying Bank
(within paragraph (c) of the definition thereof).

 

46.                               GOVERNING LAW

 

Save as provided in Clause 1.12 (New York Law), this Agreement and all matters arising from
or connected with it are governed by English law.

 

47.                               JURISDICTION

 

47.1                           English Courts

 

The courts of England have exclusive jurisdiction to
settle any dispute (a “Dispute”)
arising out of or in connection with this Agreement (including a dispute
regarding the existence, validity or termination of this Agreement or the
consequences of its nullity).

 

257

 

47.2                         Convenient Forum

 

The parties agree that the courts of England are the
most appropriate and convenient courts to settle Disputes between them and,
accordingly, that they will not argue to the contrary.

 

47.3                          Non-Exclusive Jurisdiction

 

This Clause 47 is for the benefit of the
Finance Parties only.  As a result and
notwithstanding Clause 47.1 (English Courts),
it does not prevent any Finance Party from taking proceedings relating to a
Dispute (“Proceedings”) in any other courts with
jurisdiction.  To the extent allowed by
law, the Finance Parties may take concurrent Proceedings in any number of
jurisdictions.

 

47.4                           Service of Process

 

(a)                                  Each Obligor incorporated outside
England and Wales agrees that the documents which start any Proceedings and any
other documents required to be served in relation to those Proceedings may be
served on it at Hertz Europe Limited, Hertz House, 11 Vine Street, Uxbridge,
Middlesex UB8 1QE, addressed to the attention of Vice President, Legal &
Corporate Affairs or, if different, its registered office in England and Wales,
who will be the service of process agent.

 

(b)                                 If the appointment of the person
mentioned in this Clause 47.4 ceases to be effective, the relevant Obligor
shall immediately appoint another person in England to accept service of
process on its behalf in England or Wales. 
If an Obligor fails to do so (and such failure continues for a period of
not less than 14 days), the Facility Agent shall be entitled to appoint such a
person by notice to such Obligor. 
Nothing contained herein shall restrict the right to serve process in
any other manner allowed by law.  This
Clause 47.4 applies to Proceedings in England and to Proceedings
elsewhere.

 

48.                               PLEDGES ON BANK
ACCOUNTS UNDER GENERAL TERMS AND CONDITIONS

 

(a)                                  Security created by any general
terms and conditions of business of a Finance Party over LTIBR owing to an
Obligor shall not secure directly or indirectly any advances made to any
Borrower incorporated in the Federal Republic of Germany (other than the
relevant Obligor itself) under the Finance Documents, but will nonetheless be
valid as security for all other obligations secured under such general terms
and conditions of business.

 

(b)                                 Notwithstanding anything to the
contrary herein or in the Finance Documents, (i) no German real estate
shall secure any borrowings of a German Obligor and (ii) no LTIBR of a
person that is affiliated with any German Obligor shall, directly or
indirectly, secure any borrowings of a German Obligor either by way of pledge,
assignment for security purposes or any other type of encumbrance.  In case of a violation of either (i) or (ii) of
the preceding sentence and only with respect to borrowings of a German Obligor,
no rights may be claimed under such security and the parties shall be obligated
to treat 

 

258

 

each other as though such security had never been given and shall
further be obligated to immediately release any such security but only to the
extent that it relates to borrowings by a German Obligor.

 

(c)                                  Notwithstanding anything to the
contrary herein or in the Finance Documents, no German VAT refund claims owing
to an Irish person by the German tax authorities, which person is affiliated
with any German Obligor (including, but not limited to, an Irish SPV to be
formed at a later point for the purpose of leasing vehicles to a German Opco)
shall secure any borrowings under this Agreement either by way of pledge,
assignment for security purposes or any other type of encumbrance.

 

AS
WITNESS the hands of the duly authorised representatives of
the parties hereto the day and year first before written.

 

259

 

(A)

 

THE BANKS AND THEIR COMMITMENTS

 

SCHEDULE 1

 

	
   

  	
   

  	
  A1 Commitment

  	
   

  	
  A2 Commitment

  	
   

  	
  C

  Commitment

  	
   

  
	
  Bank

  	
   

  	
  A1 Sterling

  Tranche

  (£)

  	
   

  	
  A1 Australian

  Dollar Tranche

  (AUD)

  	
   

  	
  A1 Canadian

  Dollar Tranche

  (CAD)

  	
   

  	
  A1 Swiss Franc

  Tranche

  (CHF)

  	
   

  	
  A1 Euro

  Tranche

  (€)

  	
   

  	
  A2 Sterling

  Tranche

  (£)

  	
   

  	
  A2 Australian

  Dollar Tranche

  (AUD)

  	
   

  	
  A2 Canadian

  Dollar Tranche

  (CAD)

  	
   

  	
  A2 Swiss Franc

  Tranche

  (CHF)

  	
   

  	
  A2 Euro Tranche

  (€)

  	
   

  	
  (€)

  	
   

  
	
  BNP Paribas

  	
   

  	
  51,030,000

  	
   

  	
  74,445,000

  	
   

  	
  —

  	
   

  	
  20,615,000

  	
   

  	
  486,569,825

  	
   

  	
  7,280,000

  	
   

  	
  10,640,000

  	
   

  	
  —

  	
   

  	
  2,940,000

  	
   

  	
  69,509,825

  	
   

  	
  43,750,000

  	
   

  
	
  BNP Paribas (Canada)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  312,300,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  44,600,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Royal Bank of Scotland plc

  	
   

  	
  51,030,000

  	
   

  	
  74,445,000

  	
   

  	
  —

  	
   

  	
  20,615,000

  	
   

  	
  486,569,825

  	
   

  	
  7,280,000

  	
   

  	
  10,640,000

  	
   

  	
  —

  	
   

  	
  2,940,000

  	
   

  	
  69,509,825

  	
   

  	
  43,750,000

  	
   

  
	
  CALYON

  	
   

  	
  43,740,000

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  17,670,000

  	
   

  	
  417,059,850

  	
   

  	
  6,240,000

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  2,520,000

  	
   

  	
  59,579,850

  	
   

  	
  37,500,000

  	
   

  
	
  Indosuez Finance (UK) Limited

  	
   

  	
  —

  	
   

  	
  63,810,000

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  9,120,000

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  TOTAL

  	
   

  	
  145,800,000

  	
   

  	
  212,700,000

  	
   

  	
  312,300,000

  	
   

  	
  58,900,000

  	
   

  	
  1,390,199,500

  	
   

  	
  20,800,000

  	
   

  	
  30,400,000

  	
   

  	
  44,600,000

  	
   

  	
  8,400,000

  	
   

  	
  198,599,500

  	
   

  	
  125,000,000

  	
   

  

 

260

 

SCHEDULE 2

 

 

	
  Bank

  	
   

  	
  A1 Swingline

  Commitment

  (€)

  	
   

  	
  A2 Swingline

  Commitment

  (€)

  	
   

  	
  C Swingline

  Commitment

  (€)

  	
   

  
	
  BNP Paribas

  	
   

  	
  30,625,000

  	
   

  	
  4,375,000

  	
   

  	
  5,250,000

  	
   

  
	
  The Royal Bank of Scotland plc

  	
   

  	
  30,625,000

  	
   

  	
  4,375,000

  	
   

  	
  5,250,000

  	
   

  
	
  CALYON

  	
   

  	
  26,250,000

  	
   

  	
  3,750,000

  	
   

  	
  4,500,000

  	
   

  
	
  TOTAL

  	
   

  	
  87,500,000

  	
   

  	
  12,500,000

  	
   

  	
  15,000,000

  	
   

  

 

1

 

(B)

 

THE BORROWERS AND THE GUARANTORS

 

SCHEDULE 1

THE ORIGINAL BORROWERS

 

A1

 

Australia

 

HA Funding Pty
Limited (ACN 117 549 498)

 

 

Belgium

 

Hertz Belgium
N.V.

 

 

Canada

 

Hertz Canada
Limited

 

 

France

 

Hertz France SAS

 

Equipole Finance
Services SAS

 

 

Germany

 

Hertz
Autovermietung GmbH

 

 

Italy

 

Hertz Italiana
S.p.A.

 

 

The
Netherlands

 

BNS Automobile
Funding B.V.

 

Spain

 

BNS Automobile
Funding B.V.

 

 

Switzerland

 

Hertz AG

 

 

United
Kingdom

 

Hertz (U.K.)
Limited

 

 

A2

 

Australia

 

HA Funding Pty Limited (ACN 117 549 498)

 

 

Belgium

 

Hertz Belgium N.V. 

 

 

Canada

 

Hertz Canada Limited

 

France

 

Hertz France SAS 

 

Equipole Finance Services SAS 

 

 

Germany

 

Hertz Autovermietung GmbH

 

263

 

Italy

 

Hertz Italiana S.p.A.

 

The Netherlands

 

BNS Automobile Funding B.V.

 

Spain

 

BNS Automobile Funding B.V.

 

Switzerland

 

Hertz AG 

 

United Kingdom

 

Hertz (U.K.) Limited

 

C

 

France

 

Hertz Equipement
France SAS

 

Spain

 

BNS Automobile
Funding B.V.

 

264

 

SCHEDULE 2

THE ORIGINAL GUARANTORS

 

Parent

 

Hertz
International, Ltd.

 

Australia

 

Hertz Australia
Pty. Limited (ABN 31 004 407 087)

 

Belgium

 

Hertz Belgium
N.V.

 

France

 

Hertz France SAS

 

Hertz Equipement
France SAS

 

Equipole Finance
Services SAS

 

Germany

 

Hertz
Autovermietung GmbH

 

Italy

 

Hertz Italiana
S.p.A.

 

The
Netherlands

 

BNS Automobile
Funding B.V.

 

Stuurgroep Holland
B.V.

 

265

 

Spain

 

Hertz de España S.A.

 

Hertz Alquiler de
Maquinaria S.L.

 

Switzerland

 

Hertz AG

 

United
Kingdom

 

Hertz (U.K.)
Limited

 

Hertz Europe
Limited

 

266

 

(C)

 

FORM OF TRANSFER CERTIFICATE

 

Form of
Transfer Certificate

 

To:          [•], as Facility Agent

 

TRANSFER
CERTIFICATE

 

relating to the
agreement (as from time to time amended, varied, novated or supplemented, the “Facilities Agreement”) dated 21 December 2005 whereby
certain facilities were made available to the borrowers referred to therein by
a group of banks on whose behalf [•] acts as Facility Agent in connection
therewith.

 

1.             Terms defined in
the Facilities Agreement shall, subject to any contrary indication, have the
same meanings herein.  The terms Bank,
Transferee and Portion Transferred are defined in Schedule A hereto.

 

2.             The Bank (a) confirms
that the details in the schedule hereto under the heading “Bank’s
Participation in the Facility” or “Advances”,
accurately summarises its participation in the Facility Agreement and the Term
of any existing Advances and (b) requests the Transferee to accept and
procure the transfer by novation to the Transferee of the Portion Transferred
(specified in the schedule hereto) of its Commitment and/or its participation
in such Advance(s) by counter-signing and delivering this Transfer
Certificate to the Facility Agent at its address for the service of notices
specified in the Facility Agreement.

 

3.             The Transferee
hereby requests the Facility Agent to accept this Transfer Certificate as being
delivered to the Facility Agent pursuant to and for the purposes of
Clause 36.6 (Transfers by Banks) of the
Facility Agreement so as to take effect in accordance with the terms thereof on
the Transfer Date or on such later date as may be determined in accordance with
the terms thereof.  The Bank and the
Transferee acknowledge and agree that all payments by the Facility Agent in
respect of the rights and obligations transferred under this Transfer Certificate
shall be made to the Transferee with effect from the Transfer Date or such
later date.

 

4.             The Transferee
confirms that it has received a copy of the Facilities Agreement together with
such other information as it has required in connection with this transaction
and that it has not relied and will not hereafter rely on the Bank to check or
enquire on its behalf into the legality, validity, effectiveness, adequacy,
accuracy or completeness of any such information and further agrees that it has
not relied and will not rely on the Bank to assess or keep under review on its
behalf the financial condition, creditworthiness, condition, affairs, status or
nature of the Obligors.

 

5.             The Transferee
hereby undertakes with the Bank and each of the other parties to the Facilities
Agreement that it will perform in accordance with their terms all those
obligations which by the terms of the Finance Documents will be assumed by it
after delivery of this Transfer Certificate to the Facility Agent and
satisfaction of the conditions (if any) subject to which this Transfer
Certificate is expressed to take effect.

 

267

 

6.

 

6.1           The Transferee
hereby expressly consents to the declarations of the Security Agent made on
behalf of and in the name of the Transferee as future pledgee, mortgagee or
chargee in the Security Documents and the Transferee confirms that it is aware
of the contents of such Security Documents. 
For purposes of any accessory encumbrance created under German law (an “Accessory Encumbrance”), the Transferee acknowledges that it
will, from the Transfer Date and pro rata to its participation in the amounts
secured by such Accessory Encumbrance, become a direct beneficiary of the
relevant Accessory Encumbrance.

 

6.2           [Each of the
agents acting for and on behalf of the Transferee under or in connection with
the Finance Documents shall be released from the restrictions of Section 181
German Civil Code (BGB).]

 

7.             [Subject to
paragraph [10] below,] the Bank makes no representation or warranty and
assumes no responsibility with respect to the legality, validity,
effectiveness, adequacy or enforceability of the Finance Documents or any
document relating thereto and assumes no responsibility for the financial
condition of the Obligors or for the performance and observance by the Obligors
of any of its obligations under the Finance Documents or any document relating
thereto and any and all such conditions and warranties, whether express or
implied by law or otherwise, are hereby excluded.

 

8.             The Bank hereby
gives notice that nothing herein or in the Finance Documents (or any document
relating thereto) shall oblige the Bank to (a) accept a re-transfer from
the Transferee of the whole or any part of its rights, benefits and/or
obligations under the Finance Documents transferred pursuant hereto or (b) support
any losses directly or indirectly sustained or incurred by the Transferee for
any reason whatsoever including the non-performance by an Obligor or any other
party to the Finance Documents (or any document relating thereto) of its
obligations under any such document.  The
Transferee hereby acknowledges the absence of any such obligation as is
referred to in (a) or (b) above.

 

9.             For the purposes
of article 1278 of the French Civil Code and article 1278 of the Belgian Civil
Code, it is expressly agreed that the security interests created pursuant to
the Security Documents and the guarantees provided under Clause 24 (Guarantee and Indemnity) of the Facility Agreement shall be
preserved for the benefit of the Transferee and all other Finance Parties.  A copy of this certificate shall be notified
to the relevant French Borrowers by bailiff (huissier)
in accordance with article 1690 of the French Civil Code.

 

10.           [The New Bank
hereby explicitly declares and represents and warrants to each Dutch Borrower
that (i) it is a PMP, (ii) it is aware that it therefore does not
benefit from the (creditor) protection offered by the Dutch Banking Act  (including but not limited to Section 3:5
of the Dutch Act on Financial Supervision) when lending monies to persons or
entities which are subject to the prohibition of Section 82 of the Dutch
Banking Act and (iii) it has made its own credit appraisal of the Dutch
Borrower.  The Transferee acknowledges
that each Dutch Borrower has relied upon such representation and warranty, it
being understood and acknowledged that the Facility

 

268

 

Agent has made no enquiries with respect to the
status of the Transferee as a PMP and that the Facility Agent shall have no
obligation or liability in that respect.] (1)

 

11.           The Transferee
hereby agrees for the benefit of the Borrowers to execute a confirmation
substantially as set out in Schedule B hereto (a “Confirmation”).  Any Confirmation delivered pursuant to this
Transfer Certificate: (i) is given for the purpose of delivery to the
competent tax authorities of the Borrowers to assist the Borrowers in the
administration of their tax affairs and not for any other purpose, (ii) does
not guarantee the achievement of a specific result or conclusion for German tax
purposes, (iii) is addressed to and is solely for the benefit of the
Borrowers in relation to the Finance Documents, and (iv) does not create
third party rights of any kind.  The
Transferee shall not be liable as a result of the delivery of a
Confirmation.  Each of the Borrowers may
disclose the existence and content of a Confirmation to its professional
advisers, its respective affiliates, as required by applicable law or
regulation and to any tax, regulatory or other governmental authority asserting
jurisdiction over it.  This undertaking
shall not limit the undertaking of the Banks under Clause 24.18 (German Confirmation) of the Facilities Agreement.

 

12.           The Transferee
(if not already a party in this capacity) agrees to become a Senior Finance
Party for the purpose of the Intercreditor Deed and agrees to be bound by the
Intercreditor Deed in that capacity.

 

13.           This certificate
may be executed in any number of counterparts and all of those counterparts
taken together shall be deemed to constitute one and the same instrument.

 

14.           This Transfer
Certificate and the rights, benefits and obligations of the parties hereunder
shall be governed by and construed in accordance with English law.

 

(1)           To be added if Dutch
Borrower is a party to the Facilities Agreement at the time the transfer takes
place.

 

269

 

SCHEDULE
A

 

	
  1.

  	
   

  	
  Bank:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Transferee:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Transfer Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Bank’s Participation
  in the [A1 Sterling Tranche] [A1 Australian Dollar Tranche] [A1 Canadian
  Dollar Tranche] [A1 Swiss Franc Tranche] [A1 Euro Tranche] [A1 Italian
  Non-Guaranteed Tranche] [A2 Sterling Tranche] [A2 Australian Dollar Tranche]
  [A2 Canadian Dollar Tranche] [A2 Swiss Franc Tranche] [A2 Euro Tranche] [A2
  Italian Non-Guaranteed Tranche] [C Facility]:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Bank’s
  Commitment

  	
   

  	
   

  	
   

  	
  Portion
  Transferred

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Advance(s):

  	
   

  	
   

  	
   

  	
  Portion
  Transferred

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Amount of
  Bank’s Participation

  	
   

  	
  Term and
  Repayment Date

  	
   

  	
  Portion
  Transferred

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Letter(s) of
  Credit Bank’s L/C Participation

  	
   

  	
  Term and Expiry
  Date

  	
   

  	
  Portion
  Transferred

  

 

Sigantories
to the Transfer Certificate

 

	
  [Transferor Bank]

  	
  [Transferee Bank]

  
	
  By:

  	
   

  
	
   

  	
   

  
	
  Date:

  	
  Date:

  

 

This Transfer
Certificate is accepted by the Facility Agent and the Transfer Date is
confirmed as [•].

 

[Facility Agent]

 

	
  By:

  

 

270

 

[Acknowledged and
agreed

 

[Security Agent]

 

By:                            ](2)

 

[Acknowledged and
agreed

 

Hertz
Europe Limited in its capacity as

 

THE
CO-ORDINATOR

 

By:                           ](3)

 

Administrative
Details of Transferee

 

Address:

 

Contact Name:

 

Account for
Payments:

 

Telex:

 

[Fax:]

 

Telephone:

 

(2) To be
added if the Transferee is acceding to the Intercreditor Deed.

(3) To be
added if the Coordinator’s consent is required pursuant to Clause 36.3
(Assignments and Transfers by Banks).

 

271

 

SCHEDULE
B

Confirmation with regard to section 8a German 

Corporation Tax Act

 

We hereby confirm
that our willingness to enter into the Facilities Agreement has not been based
on us having received, and is not conditional on us receiving, any back to back
deposits of any member of the Group or any of the Parent’s direct or indirect
shareholders to fund our Commitment under the Facilities Agreement.

 

272

 

(D)

CONDITIONS PRECEDENT

 

SCHEDULE 1

INITIAL CONDITIONS PRECEDENT

 

1.             In relation to each Original Obligor:

 

(a)           a copy, certified
as a true and up-to-date copy by an Authorised Signatory of such Original
Obligor, of the constitutional documents of such Original Obligor;

 

(b)           a copy, certified
as a true and up-to-date copy by an Authorised Signatory of such Original
Obligor, of a board resolution (or in the case of Hertz France S.A.S. and
Equipole Financial Services S.A.S., a sole shareholder resolution) (and, if
required, shareholder resolution) of such Original Obligor approving the
execution, delivery and performance of the Finance Documents and the terms and
conditions thereof and authorising a named person or persons to sign the
Finance Documents and any documents to be delivered by such Original Obligor
pursuant thereto;

 

(c)           a certificate of
an Authorised Signatory of such Original Obligor confirming that entry into the
Finance Documents and drawing of all amounts capable of being drawn by such
Original Obligor under the Finance Documents taking into account any other
Financial Indebtedness of the Obligor does not or will not cause to be exceeded
any limit or restriction on any of the powers of such Original Obligor or the
right or ability of the directors of such Original Obligor to exercise such
powers;

 

(d)           a certificate of
an Authorised Signatory of such Original Obligor setting out the names and
signatures of the persons authorised to sign, on behalf of such Original
Obligor, the Finance Documents and any documents to be delivered by such
Original Obligor pursuant thereto; and

 

(e)           copies, certified
as true and up-to-date copies by an Authorised Signatory of such Original
Obligor of any documentation necessary in order for such Original Obligor to
comply with any applicable laws relating to financial assistance.

 

2.             A certified copy of
the Acquisition Agreement executed by the parties thereto and a certificate of
an authorised signatory of the Parent or such other person acceptable to the
Facility Agent (acting reasonably) confirming that:

 

(a)                                 no amendments,
supplements, waivers or consents with respect to any provision of the
Acquisition Agreement have been made or given that would be materially adverse
to the interests of the Banks other than those with respect to which the
consent of the Facility Agent (such consent not to be unreasonably withheld or
delayed) has been obtained, together with a certified copy of any related
documentation;

 

273

 

(b)                                 all
material conditions required pursuant to the Acquisition Agreement (together
with any related documentation) have been satisfied and/or (subject to (a) above)
waived with the prior consent of the Banks (such consent not to be unreasonably
withheld); and

 

(c)                                  the
Acquisition has or will substantially contemporaneously with the Initial
Borrowing being made, be completed and, following completion of the
Acquisition, the Parent, its subsidiaries and any other Obligors shall have no
outstanding Indebtedness for Borrowed Money other than Permitted Indebtedness.

 

3.                                       Evidence
that all governmental and regulatory approvals and consents as set out in the
Commitment Letter have been obtained and are effective and that no additional
requests for information and/or documentation have been received in respect of
the Antitrust Regulatory Clearances obtained for the Acquisition or, if any
such requests have been received, that they have been satisfied.

 

4.                                       Certified
copies of the Shareholder Subordinated Loan Agreements where The Hertz
Corporation is the lender.

 

5.                                       Certified
copies of (a) the Original Financial Statements and (b) audited
financial statements of the Parent for its two financial years ending 31 December 2003
and 31 December 2002 each certified by the Parent’s independent
registered public accountants.

 

6.                                       Evidence
that the cash equity contributions envisaged by the Funds Flow Memorandum to be
made directly or indirectly by the Equity Investors on or before the Closing
Date have been made.

 

7.                                       An
executed copy of this Agreement.

 

8.                                       A
certified executed copy of each of the B Bridge Facilities Agreements (together
with such evidence as the Facility Agent (acting reasonably) may require that
all of the conditions precedent to the drawings thereunder have been met.

 

9.                                       Executed
copies of each of the Initial Security Documents together with all documents
required to be provided on or prior to the date of this Agreement pursuant to
the terms thereof.

 

10.                                 Where
customary, certificates of good standing from the jurisdiction of creation of
each Obligor.

 

11.           An executed copy
of each Intercreditor Deed.

 

12.                                 (i) A
capacity opinion of Debevoise & Plimpton LLP, London counsel to the
Equity Investors and (ii) an enforceability opinion of Gide Loyrette
Nouel, London and White & Case, London counsel to the Arrangers as to
matters of English law in the agreed form.

 

13.                                 (i) A
capacity opinion of Debevoise & Plimpton LLP, Paris counsel to the
Equity Investors and (ii) an enforceability opinion of Gide Loyrette
Nouel, Paris counsel to the Arrangers as to matters of French law in the agreed
form.

 

274

 

14.                                 A
capacity and enforceability opinion of Torys LLP counsel to the Equity
Investors, together with opinions of local provincial counsel regarding the
registration of the Initial Security Documents, as to matters of Canadian law
and addressed to the Finance Parties, in the agreed form.

 

15.                                 (i) A
capacity opinion of Debevoise & Plimpton LLP, Frankfurt counsel to the
Equity Investors and (ii) an enforceability opinion of Noerr Stiefenhofer
Lutz, Frankfurt counsel to the Arrangers as to matters of German law, in the
agreed form.

 

16.                                 A
capacity opinion of Richards, Layton & Finger, P.A., counsel to the
Equity Investors, in the agreed form.

 

17.                                 (i) A
capacity opinion of Minter Ellison counsel to the Equity Investors and (ii) an
enforceability opinion of Freehills counsel to the Arrangers as to matters of
Australian law, in the agreed form.

 

18.                                 (i) A
capacity opinion of Bonelli Erede Pappalardo counsel to the Equity Investors
and (ii) an enforceability opinion of Studio Legale Ughi e Nunziante
counsel to the Arrangers as to matters of Italian law, in the agreed form.

 

19.                                 (i) A
capacity opinion of Loyens, counsel to the Equity Investors and (ii) an
enforceability opinion of Nauta Dutilh N.V., Amsterdam, counsel to the
Arrangers as to matters of Netherlands law, in the agreed form.

 

20.                                 (i) A
capacity opinion of Schellenberg Wittmer counsel to the Equity Investors and (ii) an
enforceability opinion of Lenz & Staehelin counsel to the Arrangers as
to matters of Switzerland law, in the agreed form.

 

21.                                 (i) A
capacity opinion of Cuatrecasas counsel to the Equity Investors and (ii) an
enforceability opinion of Uria Menendez, Madrid counsel to the Arrangers as to
matters of Spanish law, in the agreed form.

 

22.                                 (i) A
capacity opinion of Loyens, counsel to the Equity Investors and (ii) an
enforceability opinion of Nauta Dutilh SPRL Brussels, counsel to the Arrangers
as to matters of Belgian law, in the agreed form.

 

23.                                 A
capacity opinion of Tozzini Freire Teixeira e Silva Advogados counsel to the
Equity Investors as to matters of Brazilian law, in the agreed form.

 

24.                                 A
capacity opinion of Bell Gully counsel to the Equity Investors as to matters of
New Zealand law, in the agreed form.

 

25.                                 An
opinion as to matters of (i) due authorisation, execution and delivery and
no conflict of in-house counsel to The Hertz Corporation and (ii) enforceability
of Debevoise & Plimpton LLP, New York counsel to The Hertz Corporation
in relation to the Intercreditor Deed and the Brazilian Guarantee, in the
agreed form.

 

26.                                 Satisfaction
of each Bank’s ‘Know Your Customer’ requirements.

 

275

 

27.                                 A
solvency certificate in the agreed form in respect of:

 

(a)                                  The
Hertz Corporation duly authorised and executed by the chief financial officer
of The Hertz Corporation;

 

(b)                                 the
Parent, duly authorised and executed by the chief financial officer of the
Parent;

 

(c)                                  Hertz
(UK) Ltd, duly authorised and executed by the chief financial office of Hertz
(UK) Ltd; and

 

(d)                                 Hertz
Holdings II UK Limited, duly authorised and executed by the chief financial
officer of Hertz Holdings II UK Limited.

 

28.                                 A
certificate of the Parent confirming that:

 

(a)                                  no
Certain Funds Event of Default has occurred and is continuing or will occur as
a result of the Acquisition or the Initial Borrowing; and

 

(b)                                 no
event of default or potential event of default has occurred and is continuing
in respect of the Financing Documentation (as defined in the Commitment Letter)
unless any such event of default or potential event of default has been waived
by the Committed Lenders (as defined in the Commitment Letter).

 

29.                                 A
certificate of the Parent confirming that no Material Adverse Effect (as
defined in the Commitment Letter) has occurred during the period since 30 June 2005
and that there will be no Material Adverse Effect at the time of the Initial
Borrowing.

 

30.                                 Evidence
that Holdco, Target and/or one or more of their respective subsidiaries shall
have:

 

(a)                                  effected
the Indenture Amendments in connection with the Tender Offer; and

 

(b)                                 assumed
or continued to be obligated in respect of Rollover Indebtedness consisting of
Tender Indebtedness,

 

(all capitalised terms in this paragraph 30
bear the meanings set out in the Commitment Letter).

 

31.                                 Evidence
that all conditions precedents to the Debt Financing (as set out an defined in
the Commitment Letter) have been satisfied or waived by the Committed Lenders
(as defined in the Commitment Letter).

 

32.                                 A
verification certificate given by 2 directors of each Australian Obligor that
it and each of its subsidiaries before entering into any Finance Document to
which it is a party has, in connection with the execution, delivery and
performance of each such Finance Document fully complied with Chapter 2J.3 of
the Australian Corporations Act 2001 (Cth).

 

276

 

33.           Evidence that all
fees and expenses due and payable:

 

(a)                                  under
any of the Finance Documents as at the date of the Initial Borrowing have been
paid or will be paid by deducting the aggregate amount of such fees from the
Initial Borrowing; and

 

(b)                                 under
the B Bridge Finance Documents as at the date of the first utilisation
thereunder have been paid or will be paid by deducting the aggregate amount of
such fees from the proceeds of such first utilisation.

 

34.                                 Share
certificates representing the entire issued share capital of:

 

(a)                                  Hertz
(U.K.) Ltd (registered in the name of Hertz Holdings II UK Limited);

 

(b)                                 Hertz
Holdings III UK Limited (registered in the name of Hertz International Ltd);

 

(c)                                  Hertz
Canada Limited (registered in the name of 1677932 Ontario Limited); and

 

(d)                                 1677932
Ontario Limited (registered in the name of CMGC Canada Acquisition ULC).

 

35.                                 Completed
stock transfer forms executed in blank by:

 

(a)                                  Hertz
International Ltd, in respect of the entire issued share capital of Hertz
Holdings III UK Limited;

 

(b)                                 Hertz
Holdings II UK Limited, in respect of the entire issued share capital of Hertz
(U.K.) Ltd;

 

(c)                                  1677932
Ontario Limited, in respect of the entire issued share capital of Hertz Capital
Limited; and

 

(d)                                 CMGC
Canada Acquisition ULC in respect of the entire issued capital of 1677932
Ontario Limited.

 

36.                                 Receipt
of satisfactory payout letters from current lenders to Hertz Canada Limited.

 

277

 

SCHEDULE 2 

ADDITIONAL CONDITIONS PRECEDENT

 

1.                                       A
duly executed borrower certificate in the agreed form.

 

2.                                       Engagement
of one or more financial institutions to publicly offer or privately place the
Take-Out Financings.

 

278

 

(E)

UTILISATION NOTICES

 

SCHEDULE 1

(FACILITIES OTHER THAN SWINGLINE FACILITIES)

From:                  [Relevant Borrower/Coordinator]

 

To:                              BNP
Paribas, as Facility Agent

 

Dated:             [•]

 

Dear Sirs,

 

1.                                       We
refer to the agreement (the “Facility Agreement”)
dated 21 December 2005, and amended and restated as of March [·] 2007, and made between, among
others, Hertz International, Ltd. as Parent, the companies named therein as
Original Borrowers and Original Guarantors, Hertz Europe Limited as
Coordinator, BNP Paribas and The Royal Bank of Scotland plc as Mandated Lead
Arrangers, CALYON as Co-Arranger, BNP Paribas, The Royal Bank of Scotland plc
and CALYON as Joint Bookrunners, BNP Paribas as Facility Agent, Security Agent
and as Global Coordinator and the financial institutions named therein as
Banks.  Terms defined in the Facility
Agreement shall have the same meaning in this notice.

 

2.                                       This
notice is irrevocable.

 

3.                                       We
hereby give you notice that, pursuant to the Facility Agreement, we wish [the Banks]/[name of Bank as L/C Issuer]
to [make an Advance]/[issue a
Letter of Credit] as follows:

 

	
  (a)

  	
   

  	
  [principal]/[face] amount:

  	
   

  	
  [•]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Currency:

  	
   

  	
  [•]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Facility:

  	
   

  	
  [•]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [(d)

  	
   

  	
  Tranche:

  	
   

  	
  [•](4)]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (e)

  	
   

  	
  Utilisation Date:

  	
   

  	
  [•]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (f)

  	
   

  	
  Repayment Date:

  	
   

  	
  [•](5)

  

 

(4)                                  Specific Tranche to be identified.  To be completed for Advances under an A
Facility only.

 

(5)                                  Must
be a Settlement Date other than in the case of any Letter of Credit.

 

279

 

4.                                       We
confirm that:

 

(a)                                  the
Borrower is [Name];

 

(b)                                 [the
Borrower is organised in [•]] [the Borrower is [a/an
Financeco/Orphan Financeco/SPV/Orphan SPV]
organised in [•] and its Related Opco is organised in [•]]; and

 

[(c)                              all
Repeated Representations will be true and correct on the proposed Utilisation
Date.] *

 

5.                                       [The proceeds of this Advance should be credited to [[insert account details]]/the
Borrower’s Security Agent Account maintained with [•]]/[The Letter of Credit should be issued in favour of [name of recipient]
in the form attached and delivered to the recipient at [address of
recipient].  The purpose of its issue is
[•].]

 

6.                                       The
Asset Report for the Borrower is attached.

 

Yours faithfully

 

	
  ......................................................

  Authorised Signatory

  for and on behalf of

  [Relevant Borrower/Coordinator]

  

 

*              Not necessary for
Rollover Advances.

 

280

 

SCHEDULE 2 

(SWINGLINE FACILITIES)

 

From:                  [Relevant Borrower/Coordinator]

 

To:                              BNP
Paribas, as Facility Agent

 

Dated:             [•]

 

Dear Sirs,

 

1.                                       We
refer to the agreement (the “Facility Agreement”)
dated 21 December 2005, and amended and restated as of March [·] 2007, and made between, among
others, Hertz International, Ltd. as Parent, the companies named therein as
Original Borrowers and Original Guarantors, Hertz Europe Limited as
Coordinator, BNP Paribas and The Royal Bank of Scotland plc as Mandated Lead
Arrangers, CALYON as Co-Arranger, BNP Paribas, The Royal Bank of Scotland plc
and CALYON as Joint Bookrunners, BNP Paribas as Facility Agent, Security Agent
and as Global Coordinator and the financial institutions named therein as
Banks.  Terms defined in the Facility
Agreement shall have the same meaning in this notice.

 

2.             This notice is
irrevocable.

 

3.                                       We
hereby give you notice that, pursuant to the Facility Agreement, we wish the
Banks to make a Swingline Advance on the following terms:

 

	
  (a)

  	
   

  	
  Amount:

  	
   

  	
  [•]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Currency:

  	
   

  	
  [•]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Swingline
  Facility:

  	
   

  	
  [•]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [(d)

  	
   

  	
  Tranche:

  	
   

  	
  [•](6)]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (e)

  	
   

  	
  Utilisation Date:

  	
   

  	
  [•]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (f)

  	
   

  	
  Repayment Date:

  	
   

  	
  [•](7)

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

4.                                       We
confirm that:

 

(a)                                  the
Borrower is [Name]; and

 

(b)                                 [the
Borrower is organised in [•]] [the Borrower is [a/an
Financeco/Orphan Financeco/SPV/Orphan SPV]
organised in [•] and its Related Opco is organised in [•]].

 

(6)                                  Specific Tranche to be identified. To be completed for
Swingline Advances under an A Swingline Facility only.

 

(7)                                  Must
be a Settlement Date.

 

281

 

5.                                       The
proceeds of this Swingline Advance should be credited to [account].

 

[6.                                   The
Asset Report (in the form for Swingline Advances) for the Borrower is
attached.]*

 

 

Yours faithfully

 

......................................................

Authorised Signatory

for and on behalf of

[Relevant Borrower/Coordinator]

 

(*)           Disapply where
not required to be delivered.

 

282

 

(F)

FORM OF BORROWER ACCESSION MEMORANDUM

 

To:                              BNP
Paribas as Facility Agent

 

From:                  [Acceeding Borrower], the Parent and the Coordinator

 

Dated:             [•]

 

Dear Sirs,

 

1.                                       We
refer to:

 

(a)                                  an
agreement (the “Facility Agreement”) dated 21 December 2005,
and amended and restated as of March [·] 2007, and made between Hertz
International, Ltd. (the “Parent”), BNP
Paribas as Facility Agent.  We refer to the
agreement (the “Facility Agreement”) dated 21 December 2005
and made between, among others, Hertz International, Ltd. as Parent, the
companies named therein as Original Borrowers and Original Guarantors, Hertz
Europe Limited as Coordinator, BNP Paribas and The Royal Bank of Scotland plc
as Mandated Lead Arrangers, CALYON as Co-Arranger, BNP Paribas, The Royal Bank
of Scotland plc and CALYON as Joint Bookrunners, BNP Paribas as Facility Agent,
Security Agent and as Global Coordinator and the financial institutions named
therein as Banks.  Terms defined in the
Facility Agreement shall have the same meaning in this notice; and

 

(b)                                 an
intercreditor deed (the “Intercreditor Deed”)
dated 21 December 2005 and made between, amongst others, Hertz
International, Ltd. as Parent, Hertz Europe Limited as Coordinator, the
companies named therein as Original Obligors, BNP Paribas as A/C Facility
Agent, NZ Facility Agent and as Security Agent, Banco BNP Paribas Brazil S.A.
as Brazilian Administrative Agent, BNP Paribas as Australian Security Trustee,
the Finance Institutions defined therein as the Original A1 Banks, the original
A2 Banks, the Original Brazilian Banks, the Original NZ Banks and the Original
C Banks, the Original Intra-group creditors, the original intra-group
debtors and the Original Equity Finance Providers.

 

Terms defined in the
Facility Agreement shall bear the same meaning herein.

 

3.                                       The
Parent requests that [•] become an Additional Borrower pursuant to
Clause 38.1 (Request for
Additional Borrower) of the Facility Agreement.

 

4.                                       [•]
is a company duly organised under the laws of [name of
relevant jurisdiction].

 

5.                                       [•]
confirms that it has received from the Parent a true and up-to-date copy of the
Facility Agreement and the Intercreditor Deed.

 

6.                                       [•]
undertakes that:

 

283

 

(a)                                  upon
its becoming a Borrower, to perform all the obligations expressed to be
undertaken under the Facility Agreement by a Borrower under the Facilities in
respect of which it is a Borrower and to perform all its corresponding
obligations under the Intercreditor Deed and agrees that it shall be bound by
the Facility Agreement and the Intercreditor Deed in all respects as if it had
been an original party thereto as an original Borrower]; and

 

(b)                                 [additional covenants as the Facility Agent may reasonably request in
connection with any proposed Take-Out Financing]](8).

 

7.                                       The
Parent confirms that, when [•] is accepted as an Additional Borrower, its
guarantee obligations pursuant to Clause 24 (Guarantee
and Indemnity) of the Facility Agreement will apply to all the
obligations of [•] under the Finance Documents in all respects in
accordance with the terms of the Facility Agreement.

 

8.                                       The
Parent:

 

(a)                                  repeats
the Repeated Representations; and

 

(b)                                 confirms
that no Event of Default or Potential Event of Default is continuing or would
occur as a result of [•] becoming an Additional Borrower.

 

9.                                       [•]
makes each of the representations and warranties described in further detail in
Clause 19.30(b) (Time of making
representations).

 

10.                                 [•]
hereby irrevocably appoints the Coordinator to act as its agent for the
purposes of the Finance Documents including, without limitation, the delivery
of Utilisation Notices and the execution of any amendments or waivers
contemplated under the terms of Clause 44 (Amendments).

 

11.                                 [•]
administrative details are as follows:

 

Address:

 

Fax No.:

 

12.                                 [Process Agent

 

[•] agrees
that the documents which start any Proceedings (as defined in Clause 47.3
(Non-Exclusive Jurisdiction) of the Facility Agreement) and any other documents
required to be served in relation to those Proceedings may be served on it at
[address of •’s place of business in
England] or at any address in England and Wales at which process may be served
on it in accordance with Part XXIII of the Companies Act 1985]/[on name of
process agent in England and Wales at address of process agent or, if
different, its registered office.  If [[•] ceases to have a place of business in England and Wales]/[the
appointment of the person mentioned above ceases to be effective], [•] shall immediately appoint another person in England and Wales to
accept service of process on its behalf in England and Wales.  If it fails to do so (and such failure
continues for a period of not less than 14 days), the Facility Agent shall be
entitled to appoint such a person by notice. 
Nothing contained herein shall restrict 

 

(8) To be
provided by any Financeco or SPV.

 

284

 

the right to serve process in any other manner
allowed by law.  This applies to
Proceedings in England and to Proceedings elsewhere.]

 

13.                                 This
Memorandum may be executed in any number of counterparts, all of which taken
together shall constitute one and the same instrument.

 

14.                                 This
Memorandum shall be governed by English law.

 

 

	
  [Acceding Borrower]

  	
  Hertz
  International Ltd

  
	
   

  	
   

  
	
  By:

  	
  By:

  
	
   

  	
   

  
	
  Hertz Europe
  Limited

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  

 

285

 

(G)

 

FORM OF GUARANTOR /COORDINATOR ACCESSION
MEMORANDUM

 

To:                              BNP
Paribas as Facility Agent

 

From:                  [•]

 

and

 

[•]

 

Dated:             [•]

 

 

Dear Sirs

 

1.                                       We
refer to:

 

(a)                                  We
refer to the agreement (the “Facility Agreement”)
dated 21 December 2005, and amended and restated as of March [·] 2007, and made between, among
others, Hertz International, Ltd. as Parent, the companies named therein as
Original Borrowers and Original Guarantors, Hertz Europe Limited as
Coordinator, BNP Paribas and The Royal Bank of Scotland plc as Mandated Lead
Arrangers, CALYON as Co-Arranger, BNP Paribas, The Royal Bank of Scotland plc
and CALYON as Joint Bookrunners, BNP Paribas as Facility Agent, Security Agent
and as Global Coordinator and the financial institutions named therein as
Banks.  Terms defined in the Facility
Agreement shall have the same meaning in this notice; and

 

(b)                                 an
intercreditor deed (the “Intercreditor Deed”)
dated 21 December 2005, and amended and restated as of March [·] 2007, and made between, amongst
others, Hertz International, Ltd. as Parent, Hertz Europe Limited as
Coordinator, the companies named therein as Original Obligors, BNP Paribas as
A/C Facility Agent, NZ Facility Agent and as Security Agent, Banco BNP Paribas
Brazil S.A. as Brazilian Administrative Agent, BNP Paribas as Australian
Security Trustee, the Finance Institutions defined therein as the Original A1
Banks, the original A2 Banks, the Original Brazilian Banks, the Original NZ
Banks and the Original C Banks, the Original Intra-group creditors, the
original intra-group debtors and the Original Equity Finance Providers.

 

2.                                       Terms
defined in the Facility Agreement shall bear the same meaning herein.

 

3.                                       The
Parent requests that [•] become [an Additional Guarantor pursuant to
Clause 39.1 (Request for Additional Guarantor)
/ the Coordinator pursuant to Clause 39.7 (Change of
Coordinator)] of the Facility Agreement.

 

4.                                       [•]
is a company duly organised under the laws of [name of
relevant jurisdiction].

 

286

 

5.                                       [•]
confirms that it has received from the Parent a true and up-to-date copy of the
Facility Agreement and the Intercreditor Deed.

 

6.                                       [•]
undertakes, upon its becoming a [Guarantor / the Coordinator], to perform all
the obligations expressed to be undertaken under the Facility Agreement and the
Intercreditor Deed by [a Guarantor / the Coordinator] and agrees that it shall
be bound by the Facility Agreement and the Intercreditor Deed in all respects
as if it had been an original party thereto as [a Guarantor / the Coordinator],
[provided that:

 

(a)                                  the
obligations of the Guarantor shall be limited to exclude any obligation
hereunder or under the Facility Agreement to the extent that such obligation
would constitute illegal financial assistance or otherwise be unlawful under
any applicable law; and

 

(b)                                 [INSERT ANY ADDITIONAL APPROPRIATE LIMITATIONS IN ACCORDANCE WITH CLAUSE
21.16 (GROUP ACCEDING GUARANTORS) AND CLAUSE 24.19 (OTHER GUARANTORS)].*]

 

7.                                       The
Parent:

 

(a)                                  repeats
the Repeated Representations; and

 

(b)                                 confirms
that no Event of Default or Potential Event of Default is continuing or would
occur as a result of [•] becoming [an Additional Guarantor / the
Coordinator].

 

8.                                       [•]
makes each of the representations set out in further detail in
Clause 19.30(b) (Time of making
representations).

 

9.                                       [[•]
hereby irrevocably appoints the Coordinator to act as its agent for the
purposes of the Finance Documents including, without limitation, the delivery
of Utilisation Notices and the execution of any amendments or waivers
contemplated under the terms of Clause 44 (Amendments).]*

 

10.                                 [•’s] administrative details are as follows:

 

Address:

 

Fax No.:

 

11.                                 [Process Agent

 

[•] agrees
that the documents which start any Proceedings (as defined in Clause 47.3
(Non-Exclusive Jurisdiction) under the Facility Agreement and any other
documents required to be served in relation to those Proceedings may be served
on it at [address of [•]’s place of business in
England] or at any address in England and Wales at which process may be served
on it in accordance with Part XXIII of the Companies Act 1985]/[on name of
process agent in England and Wales at address of process agent or, if
different, its registered office.  If [[•] ceases to have a place of business in

 

*                      Not
necessary in relation to Coordinators.

 

287

 

England and Wales]/[the appointment of the person
mentioned above ceases to be effective], [•] shall immediately appoint another person in England and Wales to
accept service of process on its behalf in England and Wales.  If it fails to do so (and such failure
continues for a period of not less than 14 days), the Facility Agent shall be
entitled to appoint such a person by notice. 
Nothing contained herein shall restrict the right to serve process in
any other manner allowed by law.  This
applies to Proceedings in England and to Proceedings elsewhere.]

 

12.                                 This
Memorandum may be executed in any number of counterparts, all of which taken
together shall constitute one and the same instrument.

 

13.                                 This
Memorandum shall be governed by English law.

 

 

	
  [•]

  	
   

  	
   

  	
  [•]

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
  [New Guarantor / Coordinator]

  	
   

  	
  The
  Parent

  

 

 

288

 

(H)

 

ADDITIONAL CONDITIONS PRECEDENT

 

SCHEDULE 1

ACCESSION OF BORROWERS AND GUARANTORS

 

1.                                       A
copy, certified as at the date of the relevant Accession Memorandum a true and
up-to-date copy by an Authorised Signatory of the proposed Additional Obligor,
of the constitutional documents of such proposed Additional Obligor.

 

2.                                       A
copy, certified as at the date of the relevant Accession Memorandum a true and
up-to-date copy by an Authorised Signatory of the proposed Additional Obligor,
of a board resolution (and, if required, shareholders resolution) or other
appropriate evidence of authority of such proposed Additional Obligor approving
the execution and delivery of an Accession Memorandum, the accession of such
proposed Additional Obligor to this Agreement and the performance of its
obligations under the Finance Documents and authorising a named person or
persons to sign such  Accession Memorandum,
any other Finance Document and any other documents to be delivered by such
proposed Additional Obligor pursuant thereto.

 

3.                                       A
certificate of an Authorised Signatory of the proposed Additional Obligor
setting out the names and signatures of the person or persons authorised to
sign, on behalf of such proposed Additional Obligor, the Accession Memorandum,
any other Finance Documents and any other documents to be delivered by such
proposed Additional Obligor pursuant thereto.

 

4.                                       A
copy, certified a true copy by an Authorised Signatory of the proposed
Additional Obligor, of its latest audited annual financial statements (if any).

 

5.                                       Where
customary, certificates of good standing from the jurisdiction of incorporation
of such Additional Obligor.

 

6.                                       If
the proposed Additional Obligor is incorporated in a jurisdiction other than
England and Wales, or executing a Finance Document which is governed by a law
other than English law, a capacity legal opinion of the legal advisers to the
Equity Investors for the benefit of the Finance Parties (at the date thereof)
in the jurisdiction of incorporation of that Additional Obligor (and, if
applicable, in such other jurisdictions perfection of the security interests)
or of the governing law of that Finance Document and an enforceability opinion
of the legal advisers to the Arrangers (or, if the relevant jurisdiction is
Canada or other jurisdiction where it is market practice for borrower’s counsel
to give such opinion, an enforceability opinion of the legal advisors to the
Equity Investors) shall be delivered to the Facility Agent in a form
satisfactory to the Facility Agent (acting reasonably).

 

7.                                       If
the proposed Additional Obligor is incorporated in a jurisdiction other than
England and Wales, evidence that the process agent specified in the relevant
Accession Memorandum has agreed to act as its agent for the service of process
in England.

 

8.                                       Duly
executed Security Documents (in form and substance satisfactory to the Facility
Agent (acting reasonably)) for such Additional Obligor if and to the extent
required

 

289

 

by the Facility Agent in accordance with
Clause 21.16(b) (Group Acceding Guarantors).

 

9.                                       Any
notices or documents required to be given or executed under the Security
Documents referred to in paragraph 10 above including those required to
perfect the security interests under such Security Documents.

 

10.                                 Satisfaction
of each Bank’s ‘Know Your Customer’ requirements.

 

290

 

SCHEDULE 2

DESIGNATED OBLIGORS

 

1.                                       A
copy, certified at a date not older than five business days before the
executing of the Designated Obligor Intercompany Loan Agreement and the
Designated Obligor Security Documents (if relevant) of a true and up-to-date
copy of the constitutional documents of such proposed Designated Obligor,
including without limitation:

 

(a)                                  a
certified copy of the shareholder’s, or similar, agreement (Gesellschaftsvertrag); and

 

(b)                                 a
certified excerpt of the commercial register,

 

if applicable to such
Designated Obligor.

 

2.                                       A
true and up-to-date copy of the shareholders’, or similar, resolution of each
Designated Obligor approving the execution and delivery of the applicable
Designated Obligor Intercompany Loan Agreement and the Designated Obligor
Security Documents (if relevant) and the performance of its obligations
thereto.

 

3.                                       A
true and up-to-date copy of a resolution of the managing directors of each
Designated Obligor (i) approving the execution and delivery of the applicable
Designated Obligor Intercompany Loan Agreement and the Designated Obligor
Security Documents (if relevant) and the performance of its obligations thereto
and authorising a named person or persons to sign such Designated Obligor
Intercompany Loan Agreement and any other documents to be delivered by such
proposed Designated Obligor pursuant thereto, (ii) setting out the names
and signatures of the person or persons authorised to sign on behalf of such
proposed Designated Obligor, the applicable Designated Obligor Intercompany
Loan Agreement and the Designated Obligor Security Documents (if relevant) and
any other documents to be delivered by such party pursuant thereto, and (iii) confirming
that the utilisation of the facilities under the Designated Obligor
Intercompany Loan Agreement would not breach any restriction of its borrowing
or guarantee powers (if any) contained in its shareholder’s agreement (Gesellschaftsvertrag).

 

4.                                       A
copy, certified as at the date on which it is delivered, of a true and
up-to-date copy by an Authorised Signatory of any Borrower that is to lend
funds to such Designated Obligor under a Designated Obligor Intercompany Loan
Agreement, of a board resolution (and, if required, shareholders resolution) or
other appropriate evidence of authority of such Borrower approving the
execution and delivery of the applicable Designated Obligor Intercompany Loan
Agreement and the Security Documents in respect thereof referred to in
paragraph 9 below and the performance of its obligations under such
documents and authorising a named person or persons to sign such documents and
any other documents to be delivered by such Borrower pursuant thereto.

 

5.                                       Where
customary, certificates of good standing from the jurisdiction of creation of
such Designated Obligor.

 

6.                                       A
copy of the latest audited annual financial statements (if any) of the proposed
Designated Obligor.

 

291

 

7.                                       A
certificate signed by an Authorised Signatory certifying that the attached
copies of the shareholders resolution (paragraph 2 above), of the
resolution of the managing directors (paragraph 3 above) as well as of the
Designated Obligor’s latest financial statements (if any) (paragraph 6
above) are true and up to date copies.

 

8.                                       (a) A
capacity legal opinion of the legal advisers to the Equity Investors in the
jurisdiction of incorporation of that Designated Obligor (and, if applicable,
in such other jurisdictions regarding perfection of the security interests) or
of the governing law of the applicable Designated Obligor Intercompany Loan
Agreement and the Designated Obligor Security Documents (if relevant) and an
enforceability opinion of the legal counsel to the Arrangers (or, if the
relevant jurisdiction is Canada or other jurisdiction where it is market
practice for borrower’s counsel to give such opinion, an enforceability opinion
of the legal advisors to the Equity Investors) in respect thereof referred to
at paragraph 9 below and (b) a capacity opinion of the legal advisers
to the Facility Agent, in each case, in the form distributed to the Facility
Agent prior to the acceptance of such Designated Obligor.

 

9.                                       If
the applicable Designated Obligor Intercompany Loan Agreement and Designated
Obligor Security Documents (if relevant) in respect thereof referred to at
paragraph 10 below is/are governed by English law, evidence that the
process agent specified in the relevant document has agreed to act as agent for
the service of process in England.

 

10.                                 Duly
executed Security Documents (in form and substance satisfactory to the Facility
Agent (acting reasonably)) required by the Facility Agent:

 

(a)                                  granting
a pledge over shares, receivables and bank accounts of such Designated Obligor
as security for the applicable Designated Obligor Intercompany Loans in respect
of which such Designated Obligor is obligated; and

 

(b)                                 which
provide for the grant of the respective pledge in favour of the Security Agent
over all of the rights of the relevant Borrower as lender and guaranteed and
secured party under the applicable Designated Obligor Intercompany Loans and
security interests referred to in paragraph (a) above.

 

11.                                 Any
notices or documents required to be given or executed under the applicable
Designated Obligor Intercompany Loans and the Security Documents referred to in
paragraph 10 above including those required to perfect the security
interests under such Security Documents.

 

292

 

(I)

 

FORM OF RESIGNATION NOTICE

 

To:                              BNP
Paribas as Facility Agent

 

From:                [•]

 

Dated:             [•]

 

 

Dear Sirs

 

1.                                       We
refer to an agreement (the “Facility Agreement”)
dated 21 December 2005 as amended and restated on [•] March 2007
and made between [•], BNP Paribas as Facility Agent, the financial
institutions defined therein as Banks and others.

 

2.                                       Terms
defined in the Facility Agreement shall bear the same meaning herein.

 

3.                                       Pursuant
to [Clause 39.3 (Resignation of a Guarantor)
and/or Clause 38.4 (Resignation of a Borrower)
[or Clause 39.6 (Cessation of a Designated
Obligor)]] we hereby request that [name of
Guarantor and/or Borrower [or Designated Obligor]]
shall cease to be a [Guarantor and/or Borrower
[Designated Obligor]] under the Facility
Agreement.

 

Yours faithfully

 

[•]

 

293

 

(J)

 

MANDATORY COST FORMULAE

 

1.                                       The
Mandatory Cost Rate is an addition to the interest rate to compensate Banks for
the cost of compliance with (a) the requirements of the Bank of England
and/or the Financial Services Authority (or, in either case, any other
authority which replaces all or any of its functions) or (b) the
requirements of the European Central Bank.

 

2.                                       On
the first day of each Interest Period or Term (as the case may be) (or as soon
as possible thereafter) the Facility Agent shall calculate, as a percentage
rate, a rate (the “Additional Cost Rate”)
for each Bank, in accordance with the paragraphs set out below.  The Mandatory Cost Rate will be calculated by
the Facility Agent as a weighted average of the Banks’ Additional Cost Rates
(weighted in proportion to the percentage participation of each Bank in the
relevant Advance) and will be expressed as a percentage rate per annum.

 

3.                                       The
Additional Cost Rate for any Bank lending from a Facility Office in a
Participating Member State will be the percentage notified by that Bank to the
Facility Agent.  This percentage will be
certified by that Bank in its notice to the Facility Agent to be its reasonable
determination of the cost (expressed as a percentage of that Bank’s
participation in all Advances made from that Facility Office) of complying with
the minimum reserve requirements of the European Central Bank in respect of
loans made from that Facility Office.

 

4.                                       The
Additional Cost Rate for any Bank lending from a Facility Office in the United Kingdom
will be calculated by the Facility Agent as follows:

 

(a)                                  in
relation to a sterling Advance:

 

	
   

  	
  

  	
  per cent. per
  annum

  

 

 

 

 

(b)           in
relation to a Advance in any currency other than sterling:

	
   

  	
  

  	
  per cent. per
  annum

  

 

 per cent. per
annum.

 

Where:

 

A                                      is
the percentage of Eligible Liabilities (assuming these to be in excess of any
stated minimum) which that Bank is from time to time required to maintain as an
interest free cash ratio deposit with the Bank of England to comply with cash
ratio requirements.

 

B                                        is
the percentage rate of interest (excluding the Margin and the Mandatory Cost
Rate and, if the Advance is an Unpaid Sum, the additional rate of interest
specified in Clause 28.2(a) (Default interest))
payable for the relevant Term on the Advance.

 

294

 

C                                        is
the percentage (if any) of Eligible Liabilities which that Bank is required
from time to time to maintain as interest bearing Special Deposits with the
Bank of England.

 

D                                       is
the percentage rate per annum payable by the Bank of England to the Facility
Agent on interest bearing Special Deposits.

 

E                                         is
designed to compensate Banks for amounts payable under the Fees Rules and
is calculated by the Facility Agent as being the average of the most recent
rates of charge supplied by the relevant Reference Banks to the Facility Agent
pursuant to paragraph 7 below and expressed in pounds per £1,000,000.

 

5.           For the purposes of
this Schedule:

 

(a)                                  “Eligible Liabilities” and “Special Deposits” have the meanings given
to them from time to time under or pursuant to the Bank of England Act 1998 or
(as may be appropriate) by the Bank of England;

 

(b)                                 “Fees Rules” means the rules on
periodic fees contained in the FSA Supervision Manual or such other law or
regulation as may be in force from time to time in respect of the payment of
fees for the acceptance of deposits;

 

(c)                                  “Fee Tariffs” means the fee tariffs
specified in the Fees Rules under the activity group A.1 Deposit acceptors
(ignoring any minimum fee or zero rated fee required pursuant to the Fees Rules but
taking into account any applicable discount rate); and

 

(d)                                 “Tariff Base” has the meaning given to it
in, and will be calculated in accordance with, the Fees Rules.

 

6.                                       In
application of the above formulae, A, B, C and D will be included in the
formulae as percentages (i.e. 5 per cent. will be included in the formula
as 5 and not as 0.05).  A negative result
obtained by subtracting D from B shall be taken as zero.  The resulting figures shall be rounded to four
decimal places.

 

7.                                       If
requested by the Facility Agent, each relevant Reference Bank shall, as soon as
practicable after publication by the Financial Services Authority, supply to
the Facility Agent, the rate of charge payable by that Reference Bank to the
Financial Services Authority pursuant to the Fees Rules in respect of the
relevant financial year of the Financial Services Authority (calculated for
this purpose by that Reference Bank as being the average of the Fee Tariffs
applicable to that Reference Bank for that financial year) and expressed in
pounds per £1,000,000 of the Tariff Base of that Reference Bank.

 

8.                                       Each
Bank shall supply any information required by the Facility Agent for the
purpose of calculating its Additional Cost Rate.  In particular, but without limitation, each
Bank shall supply the following information on or prior to the date on which it
becomes a Bank:

 

(a)                                  the
jurisdiction of each Facility Office; and

 

295

 

(b)                                 any
other information that the Facility Agent may reasonably require for such
purpose.

 

Each Bank shall promptly notify the Facility Agent
of any change to the information provided by it pursuant to this paragraph.

 

9.                                       The
percentages of each Bank for the purpose of A and C above and the rates of
charge of each relevant Reference Bank for the purpose of E above shall be
determined by the Facility Agent based upon the information supplied to it
pursuant to paragraphs 7 and 8 above and on the assumption that, unless a
Bank notifies the Facility Agent to the contrary, each Bank’s obligations in
relation to cash ratio deposits and Special Deposits are the same as those of a
typical bank from its jurisdiction of incorporation with a Facility Office in
the same jurisdiction as the relevant Facility Office.

 

10.                                 The
Facility Agent shall have no liability to any person if such determination
results in an Additional Cost Rate which over or under compensates any Bank and
shall be entitled to assume that the information provided by any Bank or
relevant Reference Bank pursuant to paragraphs 3, 7 and 8 above is true
and correct in all respects.

 

11.                                 The
Facility Agent shall distribute the additional amounts received as a result of
the Mandatory Cost Rate to the Banks on the basis of the Additional Cost Rate
for each Bank based on the information provided by each Bank and each relevant
Reference Bank pursuant to paragraphs 3, 7 and 8 above.

 

12.                                 Any
determination by the Facility Agent pursuant to this Schedule in relation
to a formula, the Mandatory Cost Rate, an Additional Cost Rate or any amount
payable to a Bank shall, in the absence of manifest error, be conclusive and
binding on all parties.

 

13.                                 The
Facility Agent may from time to time, after consultation with the Parent and
the Banks, determine and notify to all parties any amendments which are
required to be made to this Schedule in order to comply with any change in
law, regulation or any requirements from time to time imposed by the Bank of
England, the Financial Services Authority or the European Central Bank (or, in
any case, any other authority which replaces all or any of its functions) and
any such determination shall, in the absence of manifest error, be conclusive
and binding on all parties.

 

296

 

(K)

 

FORM OF LETTER OF CREDIT

 

To:          [Beneficiary]

 

Date:

 

Dear Sirs

 

Irrevocable
Standby Letter of Credit No. [•]

 

This Letter of
Credit is issued by [•], (the “Issuer”) at the
request of [•] (the “Company”) in
your favour on the following terms:

 

1.                                       The
Issuer shall not be obliged to make payments hereunder exceeding in aggregate
the maximum amount of [•].  Any payment
hereunder shall be made in [•] and shall reduce the Issuer’s liability to
make payment hereunder accordingly.

 

2.                                       This
Letter of Credit shall expire at [•] a.m./p.m., London time on
[•] 20[•] (the “Expiry Date”).  The Issuer will have no liability in respect
of any demand delivered after such time [and a demand not accompanied by the
information mentioned in paragraph 3(b) below shall not be validly
delivered].

 

3.                                       Subject
to paragraph 2 above, within three business days of receiving (a) your
demand on the Issuer [in the form set out in the
Appendix hereto] specifying the amount claimed under this Letter of
Credit and bearing an endorsement of the above Letter of Credit number and (b) [details of any other documents required from the Beneficiary to be
inserted (including a certificate verified as having been signed by two
authorised officers of the Beneficiary authorising delivery of the demand)],
at [details of Fronting Bank’s office to be inserted]
the Issuer hereby agrees to pay to you in [•], subject to the maximum
amount referred to in paragraph 1 above.

 

4.                                    Your
rights under this Letter of Credit may not be assigned or transferred.

 

5.                                       This
Letter of Credit is subject to Uniform Customs and Practice for Documentary
Credit (1993 Revision) , International Chamber of Commerce Publication No. 500.

 

6.                                       This
Letter of Credit is governed by English law and, for the benefit of the Issuer
only, the courts of England shall have exclusive jurisdiction.

 

Yours faithfully

 

 

	
   

  	
   

  

for and on behalf
of [•]

 

297

 

 [Appendix to Letter of
Credit]

 

Form of
Draft

 

To:          [•]

 

From:      [The Beneficiary]

 

[Date]

 

Dear Sirs

 

Irrevocable
Standby Letter of Credit No. [•] (the “Letter of
Credit”)

 

We refer to the
Letter of Credit.  Terms defined in the
Letter of Credit and not otherwise defined herein bear the same meaning herein.

 

We are writing to
inform you that we are entitled to make demand on you under the Letter of
Credit in the amount of [•], being the amount which has become due and
payable by the Company under an agreement [relevant details to be
inserted] but which has not been paid and we hereby demand payment
of such amount.

 

Yours faithfully

 

 

	
   

  	
   

  

for and on behalf
of [Beneficiary]

 

298

 

(L)

 

FORM OF TEG LETTER

 

From:                  [•], as
Facility Agent

 

To:                              [French Borrower]

 

Dated:             [•]

 

Re:                             Senior Bridge Facilities Agreement dated 21 December 2005, and
amended and restated as of March [·] 2007 (the “Agreement”)

 

1.                                       We
refer to the Agreement.  Terms defined in
the Agreement shall bear the same meaning in this letter unless otherwise
defined in this letter.  References to
Clauses in this letter are references to Clauses in the Agreement.

 

2.                                       This
is the letter referred to in Clause 8.3 (Effective
Global Rate (Taux Effectif Global)) of the Agreement.

 

3.                                       For
the purposes of articles L. 313-1 et seq. of the French Code de la
Consommation, the parties acknowledge that by virtue of certain
characteristics of the Facilities (and in particular the variable interest rate
applicable to the Advances the effective global rate (taux
effectif global) of the Facilities cannot be calculated at the
Closing Date.

 

4.                                       However,
as an example, the applicable effective global rate (taux
effectif global) for the Facilities, calculated on the basis of a
365-day year, would be as follows:

 

(a)                                  for
the A1 Facility, [•] per cent. per annum (three-month period rate of
[•] per cent.);

 

(b)                                 for
the A2 Facility, [•] per cent. per annum (three-month period rate of
[•] per cent.); and

 

(c)                                  for
the C Facility, [•] per cent. per annum (three-month period rate of
[•] per cent.).

 

The above rates shall not be binding on the Finance
Parties or any Obligor and are given on an indicative basis and on the basis of
the following assumptions and information available on the Closing Date:

 

(i)                                     the
Facilities are fully drawn on the last day of the relevant Availability Period
for each Facility, shall remain fully drawn for the entire duration of the
Facilities and that amounts due under the Facilities will be repaid on the
normal date for payment thereof in accordance with the Agreement;

 

(ii)                                 Terms
will be of a one month duration;

 

(iii)                              one-month’s
EURIBOR will be [•] per cent. per annum and three-month’s EURIBOR will be
[•] per cent. per annum;

 

(iv)                              each
Applicable Margin is the maximum applicable;

 

299

 

(v)                                 the
commissions and various fees payable by the Obligors are those indicated in the
fee letters referred to in Clause 25 (Commitment Commission and
Fees) of the Agreement.

 

5.                                       The
parties acknowledge that this TEG Letter forms an integral part of this
Agreement and is designated as a Finance Document.

 

We should be
grateful if you would confirm your acceptance of the terms of this letter by
signing and returning to us the enclosed copy.

 

	
   

  	
   

  

[name of Facility Agent]

 

By:                              [•]

 

 

We agree to the
above

 

	
   

  	
   

  

[name of French Borrower]

 

By:                              [•]

 

300

 

(M)

 

ELIGIBLE CUSTOMER RECEIVABLES CRITERIA

 

1.           Eligible
Receivables

 

Receivables from customers that comply with the
criteria set out below.

 

(a)           the
receivable is existing;

 

(b)                                 the
receivable is materialised by an invoice which sets out the nominal amount of
such receivable;

 

(c)                                  the
receivable is held over an Eligible Debtor;

 

(d)                                 the
receivable arises from an Eligible Contract entered into between, as
applicable, the Borrower or its Related Opco and the debtor of this receivable;

 

(e)                                  the
Eligible Contract and, with the exception of the credit insurance policies, all
instruments relating to any security interest attached thereto and all other
rights of, as applicable, the relevant Borrower or its Related Opco in
connection therewith from which the receivable arises:

 

(i)                                     are
governed by the laws of the jurisdiction of incorporation of, as applicable,
the Borrower or its Related Opco; and

 

(ii)                                  are
legal, valid, binding and enforceable upon the parties thereof subject to
applicable insolvency, bankruptcy, liquidation, administration or similar laws
or laws affecting creditors generally or general equitable principles;

 

(f)                                    the
receivable is fully and directly payable to the relevant Borrower or its
Related Opco, in the jurisdiction of incorporation of such Borrower or its
Related Opco or a European Union member country, in its own name and for its
own account;

 

(g)                                 the
receivable may not be paid in kind, and in particular by the delivery of goods
to, as applicable, the relevant Obligor or the provisions of services in favour
of such relevant Obligor;

 

(h)                                 full
and unrestricted right and title to the receivable has been kept by the
relevant Obligor since its origination,

 

(i)                                     the
invoice issued in relation to the receivable has been validly issued by the
relevant the Borrower or its Related Opco in accordance with its customary
servicing procedures;

 

(j)                                     the
relevant Borrower or its Related Opco has fulfilled all of its obligations
under the Eligible Contract which gives rise to the receivable and no dispute
has arisen with respect to, as applicable, the Borrower or its Related Opco
performance under the Eligible Contract;

 

301

 

(k)                                  the
receivable can be identified and individualised by the relevant Obligor for
ownership purposes at any time;

 

(l)                                     the
receivable does not correspond to any contractual, civil, judicial or
late-payment penalties;

 

(m)                               the
receivable is a non-interest bearing receivable (save for late interest);

 

(n)                                 the
receivable is not a Defaulted Receivable;

 

(o)                                 the
payment of the receivable is not subject to any condition not provided for in
the relevant Eligible Contract;

 

(p)                                 the
provisions of any law or regulation that apply to both:

 

(i)                                     the
receivable, any security interest attached thereto and any right of, as
applicable, the relevant Borrower or its Related Opco in connection therewith
(including, without limitation, the right of the relevant Borrower or its
Related Opco under any applicable credit insurance policies), and

 

(ii)                                  the
Eligible Contract which gave rise to that receivable, these security interest(s) and
these rights,

 

have been complied with in a full and timely manner;

 

(q)                                 the
receivable is capable of being transferred (whether by way of transfer,
assignment, negotiation, by way of guarantee or otherwise) and is not subject
to legal or contractual restrictions on transferability or Encumbrance,
including but not limited to, the need for consent to transfer and assignment
from any third party, except if:

 

(i)                                     this
restriction has been waived, or

 

(ii)                                  the
transfer of or Encumbrance over the receivable remains legal, valid, binding
and enforceable upon the relevant Borrower or its Related Opco under the laws
and regulations governing such transfer of or Encumbrance over the receivable;

 

(r)            the
receivable is not subject to a dispute, challenged, written off or cancelled;

 

(s)                                  the
receivable is not subject, in whole or in part, to any prohibition on payment,
protest, cancellation right, suspension, withholding, set-off, counter claim or
judgment;

 

(t)                                    the receivable
is not wholly or partly the subject of:

 

(i)                                     any
assignment, delegation, subrogation, attachment or seizure whatsoever, or

 

(ii)                                  any
security interest, liens, rights in rem or personal right in favour of a third
party or Encumbrance whatsoever;

 

302

 

(u)                                 the
receivable is payable in EUR, GBP, CHF, AUD or CAD;

 

(v)                                 the
receivable does not arise from the performance of any services which have been
sub-contracted in whole or in part to any third party;

 

(w)                               no
negotiable instrument, issued in connection with such receivable, has been or
is discounted, endorsed, transferred or delivered by the relevant Obligor;

 

For the purposes of the above definition of “Eligible Customer Receivable”, “Eligible
Debtor” shall mean a Debtor which complies with the following
eligibility criteria:

 

(x)                                   it
is a legal person (whether a private law or a public law entity) or a natural
person;

 

(y)                                 it
is neither an Obligor, nor a company which is controlled by Holdco;

 

(z)                                   it is
not insolvent nor subject to any insolvency or the like proceedings;

 

(aa)                            it
has no contractual relationship (including a current account relationship) with
the relevant Obligor, on the basis of which it is or would be entitled to raise
any defence of set-off (including on the basis of the fact that any such
receivable is connected or related to any debt owed to it by said Obligor, or
pursuant to a contractual set-off clause) which may result in reducing or
cancelling the debt of such debtor under the receivable owed by it;

 

(bb)                          it
is incorporated or established or resident in the jurisdiction of incorporation
of, as applicable, the relevant Obligor or its Related Opco or in any other
jurisdiction provided that the Facility Agent has received legal opinions to
its reasonable satisfaction confirming that such receivables are, subject to
customary qualifications, enforceable in the courts of the jurisdiction of
incorporation, establishment or residency of the relevant owner of such
receivables; and

 

(cc)                            it
is not a supplier of goods or services of any entity controlled by Holdco.

 

For the purposes of the above definition of “Eligible Customer Receivable”, “Eligible
Contract” shall mean in relation to any receivable, any contract,
instrument or other document providing for the terms and conditions of the
sales of goods or provisions of services from which any such receivable arises,
including without limitation and as appropriate, any relevant general or
particular terms and conditions, invoice, order form, delivery bill,
statement  and, as the case may be, the
negotiable instruments issued in respect thereof.

 

303

 

(N)

 

EXISTING INDEBTEDNESS

 

Indebtedness
identified in the Funds Flow Memorandum as being repaid by members of the Group
on the Closing Date.

 

304

 

 (O)

 

TIMETABLE

 

This
Schedule 15 (Timetable) sets forth time
periods / notice required under the relevant Clauses of this Agreement or
other actions set forth below in the case of any Borrower.  All references to times in this
Schedule 15 (Timetable) are to Paris time
unless otherwise specified.  “BD” means Business Day and “SBD”
means Specified Business Day, in each case, as defined in this Agreement.

 

	
  Action

  	
   

  	
  Euro

  	
   

  	
  Sterling

  	
   

  	
  CHF

  	
   

  	
  AUD

  	
   

  	
  CAD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Delivery of a duly completed Asset Report
  in relation to an Advance other than a Swingline Advance (Clause 4.1 (Utilisation Conditions))

  	
   

  	
  Reporting Date 11.00 a.m.

  	
   

  	
  Reporting Date 11.00 a.m.

  	
   

  	
  Reporting Date 11.00 a.m.

  	
   

  	
  Reporting Date 11.00 a.m.

  	
   

  	
  Reporting Date 11.00 a.m.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Delivery of a duly completed Utilisation
  Notice in relation to an Advance other than a Swingline Advance
  (Clause 4.1 (Utilisation Conditions))

  	
   

  	
  Information Date – 1SBD 5.00 p.m.

  	
   

  	
  Information Date – 1SBD 5.00 p.m.

  	
   

  	
  Information Date – 1SBD 5.00 p.m.

  	
   

  	
  Information Date – 1SBD 5.00 p.m.

  	
   

  	
  Information Date – 1SBD 5.00 p.m.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Delivery of a duly completed Utilisation
  Notice and Asset Report (if required) in relation to a Swingline Advance
  (Clause 5.2 (Delivery of a
  Utilisation Notice for Swingline Advances))

  	
   

  	
  Notification Date Noon

  	
   

  	
  Notification Date Noon

  	
   

  	
  Notification Date Noon

  	
   

  	
  Notification Date Noon

  	
   

  	
  Notification Date Noon

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Delivery of a duly completed Utilisation
  Notice and Asset Report (if required) in relation to a Letter of Credit,
  including any renewal thereof (Clause 4.1 (Utilisation
  Conditions))

  	
   

  	
  Notification Date 10.00 a.m.

  	
   

  	
  Notification Date 10.00 a.m.

  	
   

  	
  Notification Date 10.00 a.m.

  	
   

  	
  Notification Date 10.00 a.m.

  	
   

  	
  Notification Date 10.00 a.m.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Delivery by Facility Agent to each Bank of
  a Notification in relation to an Advance other than a Swingline Advance
  (Clause 10.1 (Advances and Letters of
  Credit))

  	
   

  	
  Information Date 11.00 a.m.

  	
   

  	
  Information Date 11.00 a.m

  	
   

  	
  Information Date 11.00 a.m

  	
   

  	
  Information Date 11.00 a.m

  	
   

  	
  Information Date 11.00 a.m

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Delivery by Facility Agent to each Bank of
  a Notification in relation to a Swingline Advance (Clause 10.1 (Advances and Letters of Credit))

  	
   

  	
  Notification Date 3.00 p.m.

  	
   

  	
  Notification Date 3.00 p.m.

  	
   

  	
  Notification Date 3.00 p.m.

  	
   

  	
  Notification Date 3.00 p.m.

  	
   

  	
  Notification Date 3.00 p.m.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Delivery by Facility Agent to each Bank of
  a Notification in relation to a Letter of Credit 

  	
   

  	
  Notification Date

  + 4SBD 

  	
   

  	
  Notification Date

  + 4SBD 

  	
   

  	
  Notification Date

  + 4SBD 

  	
   

  	
  Notification Date

  + 4SBD 

  	
   

  	
  Notification Date

  + 4SBD 

  

 

305

 

	
  Action

  	
   

  	
  Euro

  	
   

  	
  Sterling

  	
   

  	
  CHF

  	
   

  	
  AUD

  	
   

  	
  CAD

  
	
  (Clause 10.1 (Advances
  and Letters of Credit))

  	
   

  	
  3.00 p.m.

  	
   

  	
  3.00 p.m.

  	
   

  	
  3.00 p.m.

  	
   

  	
  3.00 p.m.

  	
   

  	
  3.00 p.m.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Delivery by each Bank to the Facility
  Agent of the Swingline Rate or the Canadian Swingline Rate
  (Clause 10.2(b) or 10.2(c) (Interest
  Rate Determination))

  	
   

  	
  Utilisation Date

  +1BD

  11.00 a.m.

  	
   

  	
  Utilisation Date

  +1BD

  11.00 a.m.

  	
   

  	
  Utilisation Date

  +1BD

  11.00 a.m.

  	
   

  	
  Utilisation Date

  +1BD

  11.00 a.m.

  	
   

  	
  Utilisation Date

  +1BD

  11.00 a.m.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Delivery by the Facility Agent of the
  Swingline Rate or the Canadian Swingline Rate to the relevant Borrowers and
  the Coordinator

  	
   

  	
  Utilisation Date

  +1BD

  6.00 p.m.

  	
   

  	
  Utilisation Date

  +1BD

  6.00 p.m.

  	
   

  	
  Utilisation Date

  +1BD

  6.00 p.m.

  	
   

  	
  Utilisation Date

  +1BD

  6.00 p.m.

  	
   

  	
  Utilisation Date

  +1BD

  6.00 p.m.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LIBOR, EURIBOR, BA Rate (and CORRA, as
  applicable) or BBSY Quotation Date

  	
   

  	
  Utilisation Date 

  -2BD

  as of 11.00 a.m. (Brussels time)

  	
   

  	
  Utilisation Date

  

  as of 11.00 a.m. (London time)

  	
   

  	
  Utilisation Date

  -2BD

  as of 11.00 a.m. (London time)

  	
   

  	
  Utilisation Date

  

  as of 10.00 a.m. (Sydney time)

  	
   

  	
  Utilisation Date

  

  as of 10.15 a.m. (Toronto time)

  

 

306

 

(P)

 

FORM OF LOAN NOTE DEED POLL

 

DATED
[•]

 

Made by
[AUSTRALIAN BORROWER] (“Australian
Borrower”) for the benefit of each person who from time to time is a
Bank (as defined in, and under the terms of, the Facility Agreement defined
below).

 

THE
AUSTRALIAN BORROWER HEREBY AGREES TO BE BOUND AS FOLLOWS:

 

1.                                      DEFINITIONS AND INTERPRETATION

 

1.1                               Definitions

 

Unless defined below the definitions in the Facility
Agreement (as defined below) apply in this Deed and the following definitions
apply in this Deed, in each case unless the context requires otherwise.

 

“Bank” means:

 

(a)                                  any
entity named in Schedule 1 (The Banks and their Commitments) to the
Facility Agreement; or

 

(b)                                 any
entity which has become a party to the Facility Agreement in accordance with
Clause 36.5 (Assignments by Banks) or
Clause 36.6 (Transfers by Banks) of the
Facility Agreement,

 

and which has not ceased to be a party to the
Facility Agreement in accordance with the terms thereof, or which is
subsequently inscribed in the Loan Note Register as the holder of a Loan Note.

 

“Facility Agreement”
means the facility agreement dated 21 December 2005, and amended and
restated as of March [·] 2007, and made between, among
others, Hertz International, Ltd. as Parent, the companies named therein as
Original Borrowers and Original Guarantors, Hertz Europe Limited as
Coordinator, BNP Paribas and The Royal Bank of Scotland plc as Mandated Lead Arrangers,
CALYON as Co-Arranger, BNP Paribas, The Royal Bank of Scotland plc and CALYON
as Joint Bookrunners, BNP Paribas as Facility Agent, Security Agent and as
Global Coordinator and the financial institutions named therein as Banks.  Terms defined in the Facility Agreement shall
have the same meaning in this notice.

 

“Loan Note”
means a loan note issued under this Deed and constituted by the rights under
this Deed of the Bank entitled to such loan note, title to which is recorded in
and evidenced by an inscription in the Loan Note Register.

 

“Loan Note Register”
means the register maintained by the Facility Agent for the purpose of Loan
Notes in accordance with Clause 45.5 (Establishment of Loan Note
Register) of the Facility Agreement.

 

307

 

1.2                               Interpretation

 

Clause 1 (Definitions and
Interpretation) of the Facility Agreement applies in this Deed as if
references to “this Agreement” were to this Deed.

 

2.                                      BANKS’ RIGHTS

 

This Deed is a deed poll.  The Loan Notes are issued on the condition
that each Bank has the benefit of this Deed and the Loan Notes and is entitled
to enforce this Deed and the Loan Notes issued to it even though it is not a
party to this Deed or only becomes a Bank after the date of this Deed.  Without limitation of the foregoing, the
Security Agent may, as agent of any Bank, enforce the rights of such Bank under
this Deed or any Loan Notes issued to such Bank.  Subject to the Finance Documents, the
Security Agent and each Bank may enforce its rights under this Deed
independently from the Security Agent and each other Bank.

 

3.                                      CREATION OF LOAN NOTES

 

The Australian Borrower creates and issues Loan
Notes in favour of each Bank by inscription in the Loan Note Register and with
an outstanding principal amount from time to time equal to that Bank’s
Proportion of all outstanding Advances under the [A1] [A2] [Facility]
[Facilities] from time to time as recorded in the Loan Note Register and a
maximum principal amount equal to that Bank’s Commitment under the Facility.

 

4.                                      UNDERTAKING AND ACKNOWLEDGEMENT OF DEBT

 

(a)                                  The
Australian Borrower acknowledges that it is indebted to each Bank for the
outstanding principal amount of the Loan Notes from time to time as recorded in
the Loan Note Register as outstanding to that Bank.

 

(b)                                 The
Australian Borrower agrees to pay principal and interest in respect of each
Loan Note issued to a Bank in accordance with the Facility Agreement, the Loan
Note and this Deed.

 

(c)                                  The
obligations of the Australian Borrower under paragraph (b) above are
discharged to the extent that interest is paid on a Loan Note, or a Loan Note
is redeemed, in accordance with the Facility Agreement.

 

5.                                      CONSTITUTION OF LOAN NOTES

 

5.1                               Constitution

 

The Loan Notes are constituted by this Deed and
inscription in the Loan Note Register. 
Title to the Loan Notes is conclusively evidenced for all purposes by
inscription in the Loan Note Register subject to rectification in the event of
fraud or manifest error.  No certificate
or other evidence of title to a Loan Note will be issued by or on behalf of the
Australian Borrower unless it is required by the Facility Agent or it is
required by law.

 

308

 

5.2                               Issue of Loan Notes by entry in Loan Note Register

 

A Loan Note is:

 

(a)                                  issued
when details of the Loan Note are first entered in the Loan Note Register; and

 

(b)                                 transferred
when the details of the transfer are entered in the Loan Note Register.

 

5.3                               Status

 

(a)                                  The
Loan Notes constitute direct, unconditional and unsubordinated obligations of
the Australian Borrower and rank equally among themselves and at least equally
with all unsecured and unsubordinated obligations of the Australian Borrower
(except liabilities mandatorily preferred by law and subject to the Finance
Documents).

 

(b)                                 Each
Loan Note constitutes a separate debt of the Australian Borrower to the Bank in
whose name it is recorded in the Loan Note Register, and each Bank is entitled
to enforce these obligations without having to join any other Bank or
predecessor in title of a Bank.

 

5.4                               Transfer

 

The Loan Notes are transferable only in accordance
with the Facility Agreement and in relation to any offer to transfer or resell
a Loan Note, such offer must be made in a manner which does not require
disclosure for the purposes of Part 6D.2 of the Corporations Act 2001
(Cth).

 

6.                                      INTEREST

 

(a)                                  The
Australian Borrower agrees to pay interest in respect of Loan Notes at the
rates and on the dates in accordance with and on the terms of the Facility
Agreement relating to the Advance in respect of which the Loan Notes were
issued.  Interest will accrue from day to
day on the outstanding principal amount of each Loan Note corresponding to the
outstanding principal amount of the Advance in respect of which the Loan Notes
were issued.

 

(b)                                 Interest
payable on a Loan Note shall be satisfied by the payment of the corresponding
amount of interest payable in respect of the Advance in respect of which the
Loan Note was issued, and vice versa.

 

7.                                      REPAYMENT

 

(a)                                  The
Australian Borrower agrees to redeem the Loan Notes in the amounts and
currencies and on the dates on which the Advance in respect of which the Loan
Notes were issued are repayable or prepayable in accordance with and on the
terms of the Facility Agreement.

 

(b)                                 Without
limiting paragraph (a), if the Advances in respect of which the Loan Notes
were issued become repayable or prepayable, the Australian Borrower

 

309

 

                                                shall
repay or prepay such Loan Notes at the time such Advances are repayable or
repayable in accordance with, and on the terms of, the Facility Agreement.

 

(c)                                  Any
repayment or prepayment under paragraph 7 above may be made only to the
extent that the Minimum Principal Loan Note Amount remains outstanding.

 

8.                                      PAYMENTS

 

The Australian Borrower agrees to make all payments
under a Loan Note in accordance with Clause 31 (Payments)
of the Facility Agreement.

 

9.                                      NOTICES

 

Clause 42 (Notices) of the
Facility Agreement applies to this Deed.

 

10.                               GOVERNING LAW

 

This Deed and the Loan Notes are governed by English
law.  Clause 47 (Jurisdiction) of the Facility Agreement applies to this Deed
and the Loan Notes as though set forth herein as if references to “Obligor”
were to the Australian Borrower and references to  “this Agreement” were to this Deed.

 

	
  EXECUTED AS A
  DEED POLL

  	
   

  
	
  [AUSTRALIAN BORROWER]

  	
   

  
	
   

  
	
  By:

  	
  [•]

  
			

 

310

 

(Q)

 

CANADIAN PRO-RATA SHARE

 

	
  Bank

  	
   

  	
  A1
  Canadian Dollar

  Tranche (CAD)

  	
   

  	
  A2
  Canadian Dollar

  Tranche (CAD)

  
	
  The Royal Bank
  of Scotland plc

  	
   

  	
  35%(9)

  	
   

  	
  35%(10)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CALYON

  	
   

  	
  30%(11)

  	
   

  	
  30%(12)

  

 

(9)                                  109,305,000
/ 312,300,000

 

(10)                            15,610,000
/ 44,600,000

 

(11)                            93,690,000
/ 312,300,000

 

(12)                            13,380,000
/ 44,600,000

 

311

 

(R)

 

SECURITY PRINCIPLES

 

The Security
Documents (and the security created or evidenced thereby) shall reflect the
principles set out herein. 
Clause 21.16 (Group Acceding Guarantors)
sets out the circumstances in which Additional Guarantors are required to
accede to the Agreement or Designated Obligors are required to become
Designated Obligors.  If the Additional
Guarantors or Designated Obligors are required to provide security under this
Agreement, the Security Documents entered into by such Additional Guarantors or
Designated Obligors shall also reflect the principles set out herein.

 

1.                                      DEFINED TERMS

 

1.1                                 General:  Defined terms in the Security Documents shall
mirror, to the extent possible, those in this Agreement.

 

1.2                                 Obligations to be secured:  The obligations to be secured under the
Security Documents are the Secured Liabilities (as defined below).  The security is to be granted in favour of
the Security Agent on behalf of the Finance Parties under and as defined in
this Agreement (to the extent local law requirements permit).  For ease of reference, the following
definition shall be incorporated into each Security Document:

 

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

 

2.                                      UNDERTAKINGS / REPRESENTATIONS AND WARRANTIES

 

This Agreement contains general representations,
warranties and undertakings and, consequently, any Security Document shall not
seek, to the extent possible and having regard to local law, to duplicate these
and shall be limited to those specifically relating to the assets over which
security is taken and/or to the extent not already addressed by provisions in
this Agreement.  If it is necessary to
include undertakings that are covered by this Agreement because the Security
Document will be a registered public document constituting notice to third
parties, the undertakings shall mirror the relevant undertakings in this
Agreement or cross-refer to them.

 

3.                                      CONSENTS AND APPROVALS

 

Each Obligor shall use its reasonable commercial
endeavours (including, without limitation, conducting a “whitewash” (where
appropriate)) to overcome any obstacles relating to the granting of any
Security or Guarantees to be provided pursuant to this Agreement (other than
any such obstacles that arise as a result of the terms of any Vehicle Rental
Concession), including any obstacles which may:

 

(a)                                  result
in a breach of corporate benefit, financial assistance, fraudulent preference,
thin capitalisation or capital maintenance rules, laws or regulations (or
analogous restrictions including any obligation not to endanger the 

 

312

 

                                                existence
of any Obligor or Guarantor) (in each case having binding effect on the
relevant Obligor) of any applicable jurisdiction; or

 

(b)                                 conflict
with the fiduciary duties of the directors or contravention with any legal
prohibition or result in a risk of personal or criminal liability on the part
of the officer.

 

4.                                      ENFORCEABILITY

 

The security shall be enforceable on the occurrence
of an Event of Default which is continuing and has not been waived under this
Agreement and which has resulted in the Facility Agent serving a notice under
Clause 23.16(a) (Acceleration and
Cancellation) of this Agreement provided that no such notice shall
be required to be served with respect to the enforcement of certain security
including, amongst others, the conversion of a floating charge into a fixed
charge created pursuant to any Security Document governed by the laws of
Australia.

 

5.                                      APPLICATION OF PROCEEDS

 

The proceeds of enforcement of the Security
Documents shall be stated to be applied in accordance with the provisions of the
Intercreditor Deed.

 

6.                                      SECURITY OVER SHARES

 

6.1                                 Where
possible under local law, equitable mortgages (or the equivalent in local
jurisdictions) over shares will be granted to the Security Agent and will be
perfected pursuant to local law requirements.

 

6.2                                 Share
certificates shall be delivered to the Security Agent in respect of
certificated stock together (where customary and available) with pre-stamped
share transfer forms executed in blank or in all other cases, where customary,
shares certificates endorsed (in blank).

 

6.3                                 The
share security shall contain provisions to ensure that (a) the security
has become enforceable pursuant to paragraph 4 above, the grantor of the
security is entitled to receive dividends and exercise voting rights provided
that the grantor of the security shall not exercise such voting rights in any
manner, or otherwise permit or agree to any (x) variation of the rights
attaching to or conferred by any of the shares or (y) increase in the
issued share capital of any company whose shares are charged pursuant to the
share pledge, which, in either case and in the reasonable opinion of the
Security Agent, would prejudice the ability of the Security Agent or the
Finance Parties to realise the security created by the share pledge or (z) cause
an Event of Default to occur, and (b) after the security has been
enforced, the voting and dividend receipt rights may be exercised by the
Security Agent.

 

6.4                                 Unless
the restriction is required by law or regulation, the constitutional documents
of the company whose shares have been charged will be amended to remove any
restriction on the transfer or the registration of the transfer of the shares
on enforcement of the security granted over them.

 

313

 

7.                                      SECURITY OVER RECEIVABLES

 

7.1                                 The
Group companies shall be entitled (without the further consent of the Finance
Parties) to use the proceeds of the receivables until the security has been
enforced.

 

7.2                                 No
Group company shall be required to notify any third party debtors which are not
members of the Group to any contracts that have been assigned and/or charged
under a Security Document if such notification would, in the reasonable opinion
of the Parent, materially impede or prejudice the normal operations of the
business of the relevant Group company. 
Once the security has been enforced, notifications will be made as
required by the Security Agent.

 

8.                                      MATERIAL CONTRACTS

 

The Group shall be able to deal with contracts as
permitted under this Agreement and prior to the Security becoming enforceable
pursuant to paragraph 4 above.  No
member of the Group or other Obligor shall be required to notify counterparties
which are not members of the Group or other Obligors to any contracts that have
been charged/assigned under a Security Document that such contract has been so
charged/assigned (prior to the security being enforced) if the Parent notifies
the Security Agent in writing that, in the reasonable opinion of the Parent,
such notification is likely to materially prejudice the relationship the Group
companies have with such counterparty. 
Following the security being enforced, notifications will be made as
reasonably required by the Security Agent.

 

9.                                      INSURANCE

 

9.1                                 Each
Obligor shall use its reasonable efforts to procure that the Security Agent is
named as an additional insured and loss payee with respect to each insurance
maintained by it and by each of its subsidiaries.

 

9.2                                 Following
the security being enforced, notifications to any insurer party to any insurance
policy that has been assigned and/or charged under a Security Document will be
made as reasonably required by the Security Agent.

 

10.                               RELEASE OF SECURITY

 

Each security document shall contain a release
clause requiring the Security Agent to release the security constituted thereby
if any of the following events occur:

 

10.1                           Upon
(a) the Secured Liabilities being discharged in full and none of the
secured parties being under any further actual or contingent obligation to make
advances or provide other financial accommodation to the security providers or
any other person under any of the Finance Documents, or (b) the security
provider ceasing to be both a Borrower and a Guarantor subject to, and in
accordance with, this Agreement, the Security Agent shall, at the request and
cost of the Parent, release and cancel the Security of such security provider
and procure the reassignment to the security provider of the property and
assets assigned to the Security Agent pursuant to the relevant Security Documents.

 

314

 

10.2                           In
connection with (a) any Permitted Disposal of any property that is subject
to a Security, (b) any sale or other disposition of any property otherwise
permitted by this Agreement that is subject to a Security, (c) any sale or
other disposition of any property that is subject to a Security where the
Facility Agent or the Security Agent has consented to the disposal pursuant to
this Agreement, (d) any sale or any other disposition of any property
pursuant to a merger, consolidation, reorganisation, winding-up,
securitisation, Take-Out Financing or sale and leaseback permitted by this
Agreement to the extent necessary to ensure such merger, consolidation,
reorganisation, winding-up, securitisation, Take-Out Financing or sale and
leaseback take place or (e) the creation of any Encumbrance permitted by
paragraph (x) of the definition of “Permitted
Encumbrances” other than the creation of such Encumbrance over any
asset subject to any Security governed by Australian law, the Security Agent
shall, at the request and cost of the Parent, release and cancel the security
of such security provider and procure the reassignment to the security provider
of the property and assets assigned to the Security Agent pursuant to the
relevant Security Document, provided that (i), to the extent that the disposal
of such property is a Permitted Disposal or a sale or disposition otherwise
permitted by this Agreement, the property shall be declared to be automatically
released from the Security with effect from the day of such disposal and the
Security Agent and the Facility Agent shall each do all such acts which are
reasonably requested by the Parent in order to release such property and (ii) in
the case of clause (e) above, such release and cancellation of security
shall not extend to any property or assets which form part of the A1 Borrowing
Base, the A2 Borrowing Base or the C Borrowing Base.

 

10.3                           In
connection with security over Shareholder Subordinated Loans, in the event that
such a Shareholder Subordinated Loan is converted into share capital or other
equity interests of the Parent as permitted under this Agreement, such
Shareholder Subordinated Loan shall be declared to be automatically released
from the Security with effect from the day of such conversion and the Security
Agent and the Facility Agent shall each do all such acts which are reasonably
requested by the Parent in order to release such Shareholder Subordinated Loan,
provided that such release shall be contemporaneous with the granting of new
security interest over such share capital or other equity interests of the
Parent in favour of the Security Agent (and the Finance Parties to the extent
required by applicable local law) on substantially the same terms as the share
pledge by the Parent on or before the Closing Date and on the basis set forth
in 6 above.

 

315

 

(S)(13)

 

FORM OF BANK CERTIFICATE

 

	
  Musterbank/-sparkasse
  Ort

  	
   

  	
  Bank/Savings
  Bank Location

  
	
   

  	
   

  	
   

  
	
  [EINHEIT]

  	
   

  	
  [Department]

  
	
   

  	
   

  	
   

  
	
  [NAME] Telefon:
  - [TELEFON]

  	
   

  	
  [name] Phone: -
  [phone number] Fax: - [fax number]

  
	
   

  	
   

  	
   

  
	
  Telefax: -
  [FAX]

  	
   

  	
  Address:
  Bank/Savings Bank Location

  
	
   

  	
   

  	
   

  
	
  Postadresse:
  Musterbank/-sparkasse Ort

  	
   

  	
  Location, date

  
	
   

  	
   

  	
   

  
	
  Ort, [Datum]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  - Entwurf -

  	
   

  	
  - Draft -

  
	
   

  	
   

  	
   

  
	
  Bescheinigung
  zur Vorlage beim Finanzamt für Zwecke des § 8a KStG

  	
   

  	
  Confirmation
  letter to the attention of the tax authorities with respect to sec. 8a German
  Corporate Income Tax Act (CITA)

  
	
   

  	
   

  	
   

  
	
  Sie hatten die
  ........ („Bank/Sparkasse”) gebeten, zur Vorlage beim Finanzamt für Zwecke
  des § 8a KStG eine Bescheinigung auszustellen(i). Hierzu erklären wir, dass
  uns bezüglich des Mischlimits / des Darlehens / der Betriebsmittellinie
  ...... (Vertragsnummer; Kreditnummer; Kontonummer) vom ..... (Datum des
  Vertragsabschlusses) in Höhe von EUR..... („Finanzierung”) an die [XY]
  („Kreditnehmer”)

  	
   

  	
  You have
  requested ....... (“Bank/Savings Bank”) to issue a confirmation letter to be
  presented to the tax authorities with respect to sec. 8a German Corporate
  Income Tax Act (CITA)(i). We herewith confirm, that in connection with the
  loan .....(number of the contract; number of the loan; account number) dated ....
  (date of signing the loan contract) in the amount of EUR .... (“Financing”) to
  [XY] (“Borrower”)

  
	
   

  	
   

  	
   

  
	
  keine
  Sicherheiten an Kapitalforderungen von anderen Personen als dem Kreditnehmer
  gewährt wurden(ii).

  	
   

  	
  no securities
  over cash receivables have been granted by persons other than the
  Borrower(ii).

  
	
   

  	
   

  	
   

  
	
  Die nachfolgend
  aufgeführten Sicherheiten von anderen Personen als dem Kreditnehmer gewährt
  wurden:

  	
   

  	
  The following
  securities have been granted by persons other than the Borrower:

  
	
   

  	
   

  	
   

  
	
  1.
  Dingliche Sicherheiten

  	
   

  	
  1.
  Property collateral

  
	
   

  	
   

  	
   

  
	
  Pfandrechte
  (z.B. an Einlagen)

  	
   

  	
  Pledge (eg. of
  deposits)

  

 

(13)         Note:
to be updated. German counsel to distribute revised version.

 

316

 

	
  Sicherungsabtretungen
  (z.B. Einzel-abtretung von Forderungen)

  	
   

  	
  Assignment for
  security (eg. assignment of receivables)

  
	
   

  	
   

  	
   

  
	
  2.
  Personalsicherheiten (z.B. Bürgschaft,
  Garantie, Schuldmitübernahme)

  	
   

  	
  2.
  Individual securities (eg. guarantee,
  assumption of liability on a joint basis)

  
	
   

  	
   

  	
   

  
	
  verbunden
  mit folgenden/r:

  	
   

  	
  in
  connection with 

  
	
   

  	
   

  	
   

  
	
  dinglichen
  Sicherheit (z.B. an Einlagen)

  	
   

  	
  “in rem”
  security right (eg. on a deposits)

  
	
   

  	
   

  	
   

  
	
  Sicherungsabtretungen
  (z.B. Einzel-abtretung von Forderungen; Global-/Mantelabtretung von
  Forderungen)

  	
   

  	
  assignment for
  security (eg. single assignment of receivables, universal assignment of
  receivables)

  
	
   

  	
   

  	
   

  
	
  Unterwerfung
  der sofortigen Zwangs-vollstreckung mit dem gesamten Vermögen oder
  hinsichtlich einzelner Vermögensgegenstände

  	
   

  	
  possibility of
  immediate execution with respect to all assets or specified assets

  
	
   

  	
   

  	
   

  
	
  vereinbarten
  Verfügungsbeschränkungen

  	
   

  	
  agreed
  restraint on disposal of assets

  
	
   

  	
   

  	
   

  
	
  sonstigen
  Vereinbarungen (z.B.: Pfandrechte nach den Allgemeinen
  Geschäftsbedingungen)(ii)(i)

  	
   

  	
  other
  agreements (eg. pledge acc. to the general terms and conditions)(ii)(i)

  
	
   

  	
   

  	
   

  
	
  3.
  Sicherheiten der o.g. Art, auf die während des bestehenden
  Darlehens-verhältnisses verzichtet wurde

   

  	
   

  	
  3.
  Securities as mentioned above, which has been waived for the term of the loan

  
	
   

  	
   

  	
   

  
	
  Sonstige Anmerkungen(iv)

  	
   

  	
  Further
  comments(iv)

  
	
   

  	
   

  	
   

  
	
  Die
  Bescheinigung enthält nur solche Angaben, die dem bei der Bank/Sparkasse mit
  der vorgenannten Finanzierung vertrauten Personenkreis bekannt sind.

  	
   

  	
  This
  confirmation letter contains only such information, which is known to the
  person working on the aforementioned financing at the Bank/Savings Bank.

  
	
   

  	
   

  	
   

  
	
  Die
  Bank/Sparkasse übernimmt mit dieser Erklärung – bereits aus rechtlichen
  Gründen – keine Beratung in steuerlichen Angelegenheiten. Insbesondere steht
  die Bank/Sparkasse nicht für einen steuerlichen Erfolg ein, der mit dieser
  Bescheinigung angestrebt wird.

  	
   

  	
  In accordance
  with the law the Bank/ Savings Bank is not providing any tax services with
  this confirmation. Furthermore does the Bank/Savings Bank not guarantee any
  success of the action which is pursued with this confirmation letter.

  
	
   

  	
   

  	
   

  
	
  Die deutsche
  Version dieser Bescheinigung ist bindend.

  	
   

  	
  The German
  version of this confirmation letter shall prevail. 

  
	
   

  	
   

  	
   

  
	
  Mit
  freundlichen Grüßen,

  	
   

  	
  Kind regards,

  

 

317

 

	
  Bank/Sparkasse

  	
   

  	
  Bank/Savings
  Bank

  
	
   

  	
   

  	
   

  
	
  Erläuterungen

  	
   

  	
  Explanations

  
	
   

  	
   

  	
   

  
	
  (i) Die
  Erklärung ist grundsätzlich nur auf Anforderung des Kreditnehmers anlässlich
  des Abschlusses einer der genannten Rechtsgeschäfte (Darlehen etc.) durch den
  Kreditgeber abzugeben; sie ist vom Aussteller der ursprünglichen
  Bescheinigung ferner anlässlich jeder Vertragsänderung oder Änderung der
  gewährten Sicherheiten ohne weitere Anforderungen des Kreditnehmers
  abzugeben.

  	
   

  	
  (i)  In
  general, the confirmation letter is to be issued by the Lender only on the
  demand of the Borrower upon signing of an agreement as mentioned above (eg.
  loan agreement etc.). It has to be renewed by the issuer of the first
  confirmation letter without prior request by the Borrower as soon as the
  underlying agreement or the given securities have been altered.

  
	
   

  	
   

  	
   

  
	
  (ii)  Die
  Aufzählung der von Dritten gewährten Sicherheiten und die namentliche
  Auflistung der Sicherheitengeber erfolgt unabhängig davon, ob es sich dabei um
  nicht nur kurzfristige Einlagen oder nicht nur kurzfristige sonstige
  Kapitalforderungen i.S.d. Rdnr. 20 des BMF-Schreibens vom 15. Juli 2004 zu §
  8a KStG (BStBl. I 2004 S. 593) handelt. Sie erfolgt ferner unabhängig davon,
  ob die Sicherheit vom Eintritt einer Bedingung (z.B. dem Sicherungsfall oder
  der Fälligkeit der gesicherten Schuld) oder dem Ablauf einer Frist abhängig
  ist.

  	
   

  	
  (ii)  The
  listing of the securities provided by third parties and the naming of the
  obligor should be made regardless of whether the deposit or cash receivable
  is not only short term in the sense of para. 20 of the letter memorandum of
  the German tax authorities dated 15 July 2004 with respect to sec. 8a
  CITA (published in BStBl. I 2004 page 593). Moreover the listing should
  be made regardless of whether the securities are given conditionally (eg. to
  the event of default or to maturity of the secured liability) or subject to a
  due date.

  
	
   

  	
   

  	
   

  
	
  (ii)(i) 
  Einzufügen sind ferner sämtliche für das Darlehen/den Kredit bestellten
  Sicherheiten und Treuhandverhältnisse (z.B. Grundschuld, Hypothek,
  Patronatserklärung, Sicherungsüber-eignung).

  	
   

  	
  (ii)(i)        All securities and trusteeship have to
  be listed which have been granted for the underlying loan/facility (eg. land
  charge, mortgage, letter of comfort, transfer by way of security.

   

  
	
   

  	
   

  	
   

  
	
  (iv)  Hier
  sind Angaben anzubringen, sofern und soweit von (weiteren) Personen, die
  nicht Kreditnehmer sind, Sicherheiten gewährt wurden, diese Personen das
  Kreditinstitut jedoch nicht von einem bestehenden Bankgeheimnis hinsichtlich
  dieser Bescheinigung entbunden haben.

  	
   

  	
  (iv)          Please provide information here
  (having regard to confidentiality restrictions) in respect of security given
  by persons other than the Borrower who have not released the Bank/Savings
  Bank from their obligation of confidentiality with respect to this letter.

  

 

318

 

(T)

 

SECURITY DOCUMENTS

 

319

 

INITIAL
SECURITY DOCUMENTS

 

1.             Australia

 

Hertz
Australia Pty. Limited (the Australian Opco)

 

1.1                                 Australian
Purchaser Charge (Project H) – Unlimited between Hertz Australia Pty. Limited
and HA Funding Pty Limited.

 

1.2                                 Australian
Purchaser Charge (Project H) – South Australia between Hertz Australia Pty.
Limited And HA Funding Pty Limited.

 

1.3                                 Australian
Purchaser Charge (Project H) – Queensland between Hertz Australia Pty. Limited
and HA Funding Pty Limited.

 

Hertz Investment
(Holdings) Pty. Limited

 

1.4                                 Australian
Share Mortgage over Purchaser Shares (Project H) between Hertz Investment
(Holdings) Pty. Limited and HA Funding Pty Limited.

 

Hertz
Note Issuer Pty Limited

 

1.5                                 Australian
Issuer Charge (Project H) between Hertz Note Issuer Pty Limited and HA Funding
Pty Limited.

 

HA
Funding Pty Limited

 

1.6                                 Australian
Borrower Charge (Project H) between HA Funding Pty Limited and the Security
Agent.

 

Internal
funding documents

 

1.7                                 Australian
Subscription Deed (Project H) between HA Funding Pty Limited, Hertz Note Issuer
Pty Limited and Perpetual Trustee Company Limited.

 

1.8                                 Australian
Purchase Deed (Project H) between Hertz Australia Pty. Limited, HA Funding Pty
Limited and Perpetual Trustee Company Limited.

 

1.9                                 Australian
Registry Services Agreement (Project H) between Hertz Note Issuer Pty Limited,
HA Funding Pty Limited and Perpetual Trustee Company Limited.

 

1.10                           Australian
Loan Note Deed Poll (Project H) given by Hertz Note Issuer Pty Limited.

 

1.11                           Australian
Security Trust Deed (Project H) between HA Funding Pty Limited and the Security
Agent.

 

2.             Belgium

 

2.1                                 Pledge
of shares in Hertz Belgium N.V. (the Belgian Opco) to be entered into between
Hertz Holdings Netherlands B.V. and BNP Paribas S.A.

 

2.2                                 General
pledge over the business (equivalent of floating charge) of the Belgian Opco to
be entered into between Hertz Belgium NV and BNP Paribas S.A.

 

320

 

2.3                                 Pledge
of receivables and bank account over (a) any receivables under the
relevant dealer and buy-back agreements (b) benefit of bank guarantees of
buy-back obligations (c) insurance policies (d) net balance of bank
accounts, (e) VAT credit and to be entered into between Hertz Belgium NV
and BNP Paribas S.A.

 

3.             Canada

 

Hertz
Canada Limited (Opco)

 

3.1                                 General
Security and Pledge Agreement.

 

3.2           Hypothec in form suitable for
registration in Quebec.

 

3.3           Bond in support of Hypothec.

 

3.4           Bond Pledge in support of Bond.

 

1677932
Ontario Limited

 

3.5           General Security and Pledge Agreement
(including a pledge of shares of Hertz Canada Limited).

 

CMGC
Canada Acquisition ULC

 

3.6                                 General
Security and Pledge Agreement (including pledge of shares of 1677932 Ontario
Limited).

 

4.             France

 

Hertz
France SAS (Opco)

 

4.1                                 Floating
Charge (Nantissements de fonds de commerce) over
Hertz France SAS business to be entered into between Hertz France SAS, BNP
Paribas as Security Agent on its own behalf and on behalf of the beneficiaries.

 

4.2                                 Pledge
over net balance of all bank accounts (acte de nantissement de
soldes de comptes bancaires) of Hertz France SAS  and to be entered into between Hertz France
SAS, BNP Paribas as Security Agent on its own behalf and on behalf of the
beneficiaries.

 

4.3                                 Pledge
(Nantissement de compte d’instruments financiers)
by Hertz France SAS over Hertz Equipement France SAS shares to be entered into
between Hertz France SAS, BNP Paribas as Security Agent on its own behalf and
on behalf of the beneficiaries and the relevant bank account holder.

 

Hertz
Equipement France SAS (E. Opco)

 

4.4                                 Floating
Charge (Nantissement de fonds de commerce) over
Hertz Equipement France SAS business to be entered into between Hertz
Equipement France SAS, BNP Paribas as Security Agent on its own behalf and on
behalf of the beneficiaries.

 

321

 

4.5                                 Assignment
of receivables by way of security (cession de créances
professionnelles à titre de garantie) to be entered into between
Hertz Equipement France SAS, BNP Paribas as Security Agent on its own behalf
and on behalf of the assignees.

 

4.6                                 Pledge
over net balance of certain bank accounts (acte de nantissement de
soldes de comptes bancaires) of Hertz Equipement France SAS and to
be entered into between Hertz Equipement France SAS, BNP Paribas as Security
Agent on its own behalf and on behalf of the beneficiaries.

 

Equipole
Finance Services SAS

 

4.7                                 Floating
Charge (Nantissements de fonds de commerce)  over Equipole Finance Services SAS business to be entered
into between Equipole Finance Services SAS, BNP Paribas as Security Agent on
its own behalf and on behalf of the beneficiaries.

 

4.8                                 Assignment
of receivables by way of security (cession de créances
professionnelles à titre de garantie) to be entered into between
Equipole Finance Services SAS, BNP Paribas as Security Agent on its own behalf
and on behalf of the assignees.

 

4.9                                 Pledge
over net balance of certain bank accounts (acte de nantissement de
soldes de comptes) to be entered into between Equipole Finance
Services SAS, BNP Paribas as Security Agent on its own behalf and on behalf of
the beneficiaries.

 

Equipole,
S.A.

 

4.10                           Pledge
(nantissement de compte d’instruments financiers)
over Equipole Finance Services SAS shares to be entered into between Equipole
Finance Services SAS, BNP Paribas as Security Agent on its own behalf and on
behalf of the beneficiaries and the relevant bank account holder.

 

4.11                           Pledge
(nantissement de compte d’instruments financiers)
over Hertz France SAS shares to be entered
into between Equipole, S.A., Hertz France SAS,
BNP Paribas as Security Agent on its own behalf and on behalf of the
beneficiaries and the relevant bank account holder.

 

4.12                           Pledge
(nantissement de compte d’instruments financiers)
over Hertz Equipment  France SAS
shares to be entered into between Equipole, S.A., Hertz Equipment  France SAS, BNP Paribas as Security Agent on its own behalf
and on behalf of the beneficiaries and the relevant bank account holder.

 

5.             Germany

 

Hertz
Autovermietung GmbH (Opco)

 

5.1                                 Security  assignment of moveable assets (Sicherungsübereignungsvertrag) including in relation to the
existing cars in Germany by the Opco, between Hertz Autovemietung GmbH as
assignor and BNP Paribas S.A. as assignee.

 

5.2                                 Global
assignment of receivables (Globalabtretung von Fro
derungen) to be entered into between Hertz Autovermietung GmbH as
assignor and BNP Paribas S.A. as assignee.

 

322

 

5.3                                 Pledges
over bank accounts of Opco (Kontoverpfandung)
to be entered into between Hertz Autovermietung GmbH and BNP Paribas S.A. as
Security Agent.

 

Equipole, S.A.

 

5.4                                 Share
pledge (German OpCo share) (German law) of Equipole, S.A. in Hertz
Autovermietung GmbH to be entered into between Equipole, S.A and BNP Paribas
S.A.

 

6.             Italy

 

Hertz
Italiana S.p.A. (Opco)

 

6.1                                 Assignment
by way of security of certain buy-back and other receivables from car manufacturers
between Hertz Italiana S.p.A and BNP Paribas S.A.

 

6.2                                 Pledge
over balance of certain bank accounts between Hertz Italiana S.p.A and BNP
Paribas S.A.

 

Hertz
Holding South Europe S.r.l

 

6.3                                 Pledge
over Italian Opco’s shares between Hertz Holding South Europe S.r.l and BNP
Paribas S.A.

 

7.             Netherlands

 

BNS
Automobile Funding B.V.

 

7.1                                 Deed
of Disclosed Pledge of Receivables between BNS Automobile Funding B.V. as
Pledgor and BNP Paribas as Security Agent as Pledgee.

 

Stuurgroep
Holland B.V.

 

7.2                                 Deed
of Disclosed Pledge of Registered Shares between Stuurgroep Holland B.V. as
Pledgor, BNS Automobile Funding B.V. and BNP Paribas as the Pledgees and Hertz
Automobielen Netherlands B.V. as Company.

 

7.3                                 Deed
of Non-Possessory Pledge of Movables between Stuurgroep Holland B.V. as Pledgor
and BNS Automobile Funding B.V. and BNP Paribas as the Pledgees.

 

7.4                                 Deed
of Disclosed Pledge of Receivables between Stuurgroep Holland B.V. as Pledgor
and BNS Automobile Funding B.V. and BNP Paribas as the Pledgees.

 

7.5                                 Deed
of Undisclosed Pledge of Receivables between Stuurgroep Holland B.V. as Pledgor
and BNS Automobile Funding B.V. and BNP Paribas as the Pledgees.

 

Hertz
Holdings Netherlands B.V.

 

7.6                                 Deed
of Disclosed Pledge of Registered Shares between Hertz Holdings Netherlands
B.V. as Pledgor, BNS Automobile Funding B.V. as Pledgee and Stuurgroep Holland
B.V. as Company.

 

323

 

8.             Spain

 

Shareholders
of Hertz de España, S.A. (OpCo)

 

8.1                                 Pledge
over shares in OpCo between Hertz International, Ltd., Hertz Equipment Rental
International, Ltd., BNP Paribas S.A. as Security Agent on its behalf and on
behalf of the beneficiaries and Hertz de España, S.A.

 

Hertz
de España, S.A. (OpCo)

 

8.2                                 Pledge
over shares in Equipment OpCo between Hertz de España, S.A FundingCo, BNP
Paribas S.A. as Security Agent on its behalf and on behalf of the beneficiaries
and Hertz Alquiler de Maquinaria, S.L.

 

8.3                                 Pledge
over receivables from buy-back agreements of OpCo between Hertz de España, S.A,
FundingCo and BNP Paribas S.A. as Security Agent on its behalf and on behalf of
the beneficiaries (as updated from time to time).

 

8.4                                 Pledge
over insurance policies of OpCo between Hertz de España, FundingCo and BNP
Paribas as Security Agent on its behalf and on behalf of the beneficiaries.

 

8.5                                 Pledge
over bank accounts of OpCo between Hertz de España, FundingCo and BNP Paribas
as Security Agent on its behalf and on behalf of the beneficiaries (as amended
on May 17, 2006).

 

8.6                                 Pledge
over VAT credits of OpCo between Hertz de España, FundingCo and BNP Paribas as
Security Agent on its behalf and on behalf of the beneficiaries.

 

Hertz
Alquiler de Maquinaria S.L. (Equipment OpCo)

 

8.7                                 Pledge
over receivables from buy-back agreements of Equipment OpCo between Hertz Alquiler
de Maquinaria, S.L., FundingCo and BNP Paribas S.A. as Security Agent on its
behalf and on behalf of the beneficiaries (as updated from time to time).

 

8.8                                 Pledge
over bank accounts of Equipment OpCo between Hertz Alquiler de Maquinaria,
S.L., FundingCo and BNP Paribas S.A. as Security Agent on its behalf and on
behalf of the beneficiaries (as amended on May 17, 2006).

 

8.9                                 Pledge
over insurance policies of Equipment OpCo between Hertz Alquiler de Maquinaria,
S.L., FundingCo and BNP Paribas S.A. as Security Agent on its behalf and on
behalf of the beneficiaries.

 

8.10                           Pledge
over VAT credits of Equipment OpCo between Hertz Alquiler de Maquinaria, S.L.,
FundingCo and BNP Paribas S.A. as Security Agent on its behalf and on behalf of
the beneficiaries.

 

BNS
Automobile Funding B.V.

 

8.11                           Pledge
over proceeds arising from enforcement of pledges granted by Hertz de España,
S.A and Hertz Alquiler de Maquinaria, S.L. between FundingCo and BNP Paribas
S.A. as Security Agent on its behalf and on behalf of the beneficiaries.

 

 

324

 

9.             Switzerland

 

Hertz
AG (the Swiss Opco)

 

9.1                                 Pledge
Agreement on the entire share capital of Hertz AG to be entered into between
Hertz Holding South Europe S.r.l and BNP Paribas S.A. as Security Agent.

 

9.2                                 Pledge
Agreement on the entire share capital of Züri-Leu Garage AG and Société
Immobilière Fair Play to be entered into between Hertz AG and BNP Paribas S.A.
as Security Agent.

 

9.3                                 Assignment
Agreement relating to Trade Receivables, Insurance Claims, Inter-company
Receivables and Bank Accounts of the Swiss Opco to be entered into between
Hertz AG and BNP Paribas S.A. as Security Agent.

 

10.          England and Wales

 

10.1                           Deed
of Charge to be entered into between Hertz (U.K.) Limited and Security Agent.

 

10.2                           Deed
of Charge over Shares in Hertz (U.K.) 
Limited to be entered into between Hertz Holdings II UK Limited and
Security Agent.

 

10.3                           Deed
of Charge over Shares in Hertz Holdings III to be entered into between Hertz
International Ltd. and Security Agent.

 

10.4                           Deed
of charge over intercompany loan agreements between BNS Automobile Funding B.V.
as Chargor and BNP Paribas as Security Agent.

 

325

 

(U)

 

FORMS OF ASSET REPORTS

 

SCHEDULE
1

ALL ADVANCES OTHER THAN SWINGLINE ADVANCES

 

Part A
– Asset Report for A Advances

 

As attached.

 

Part B
– Asset Report for C Advances

 

As attached.

 

326

 

SCHEDULE
2

FORM OF SWINGLINE ASSET REPORT

 

Part A
– Asset Report for A Swingline Advances

 

As attached.

 

Part B
– Asset Report for C Swingline Advances

 

As attached.

 

327

 

SCHEDULE
3

FORM OF LETTER OF CREDIT ASSET REPORT

 

Asset
Report for Letters of Credit

 

As attached.

 

328

 

(V)

 

NOTIFICATION

 

SCHEDULE
1

(ADVANCES OTHER THAN SWINGLINE ADVANCES)

 

From:                  BNP Paribas

 

To:                              [CALYON/RBS/
BNPP as appropriate]

 

Dated:             [·]

 

Dear Sirs,

 

1.                                       We
refer to the agreement (the “Facility Agreement”)
dated 21 December 2005, and amended and restated as of March [·] 2007, and made between, among
others, Hertz International Ltd., BNP Paribas as Facility Agent and the
financial institutions named therein as Banks. 
Terms defined in the Facility Agreement shall have the same meaning in this
notice.

 

2.                                       This
notice is irrevocable.

 

3.                                       We
hereby give you notice that, pursuant to Clause 10.1 (Advances and
Letters of Credit) of the Facility Agreement, the Banks need to make
the A1 and A2 Advances as follows:

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Total
  Amount

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Borrower

  	
   

  	
  Tranche

  A1

  Amount

  	
   

  	
  Tranche

  A2

  Amount

  	
   

  	
  Amount

  to be

  repaid

  (main

  facility)

  	
   

  	
  Amount
  to

  be repaid

  (swingline)

  	
   

  	
  New 

  Drawing

  (A1+

  A2)

  	
   

  	
  Net 

  Drawing

  Amount

  	
   

  	
  Cash

  Flow

  	
   

  	
  Utilisation
  Date

  	
   

  	
  Repayment
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

This should list
each Borrower that we are lending

 

4.                                       We
hereby give you notice that, pursuant to Clause 10.1 (Advances and
Letters of Credit) of the Facility Agreement, the Banks need to make
the C Advance as follows:

 

	
   

  	
   

  	
   

  	
   

  	
  Tranche
  C Amount

  	
   

  	
   

  	
   

  
	
  Borrower

  	
   

  	
  Amount to

  be repaid

  (main

  facility)

  	
   

  	
  Amount to 

  be repaid

  (swingline)

  	
   

  	
  New

  Drawing 

  	
   

  	
  Net Drawing 

  Amount

  	
   

  	
  Cash Flow

  	
   

  	
  Utilisation

  Date

  	
   

  	
  Repayment
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

329

 

5.                                       The
proceeds of [Please insert as appropriate]

 

the Euro Advances should be credited to [insert account details].

 

the CHF Advances should be credited to [insert account details].

 

the GBP Advances should be credited to [insert account details].

 

the AUD Advances should be credited to [insert account details].

 

The CAD Advances should be credited to [insert account details].

 

6.                                       The Asset Report
for the Borrower is attached.

 

Yours faithfully

 

 

	
   

  	
   

  
	
  Authorised
  Signatory

  
	
  for and on
  behalf of

  
	
  BNP Paribas as
  Facility Agent

  

 

330

 

SCHEDULE
2

(SWINGLINE FACILITIES)

 

From:                  BNP Paribas

 

To:                              [CALYON/RBS/
BNPP as appropriate]

 

Dated:             [·]

 

Dear Sirs,

 

1.                                       We
refer to the agreement (the “Facility Agreement”)
dated 21 December 2005, and amended and restated as of March [·] 2007, and made between, among
others, Hertz International Ltd., BNP Paribas as Facility Agent and the
financial institutions named therein as Banks. 
Terms defined in the Facility Agreement shall have the same meaning in this
notice.

 

2.                                       This
notice is irrevocable.

 

3.                                       We
hereby give you notice that, pursuant to Clause 10.1 (Advances and
Letters of Credit) of the Facility Agreement, the Banks need to make
the A1 and A2 Swingline Advances as follows:

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Total Amount

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Borrower

  	
   

  	
  Swingline

  A1

  Amount

  	
   

  	
  Swingline

  A2 

  Amount

  	
   

  	
  Amount to

  be repaid

  (main facility)

  	
   

  	
  Amount to be

  repaid

  (swingline)

  	
   

  	
  New 

  Drawing

  (A1 + A2

  Swingline)

  	
   

  	
  Net

  Drawing 

  Amount

  	
   

  	
  Cash Flow

  	
   

  	
  Utilisation

  Date

  	
   

  	
  Repayment

  Date

  	
   

  	
  Settlement Instructions

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

This should list
each Borrower that we are lending

 

4.                                       We
hereby give you notice that, pursuant to Clause 10.1 (Advances and
Letters of Credit) of the Facility Agreement, the Banks need to make
the C Swingline Advance as follows:

 

	
   

  	
   

  	
  Amount
  to

  	
   

  	
  Tranche C Swingline Amount

  	
   

  	
   

  	
   

  
	
  Borrower

  	
   

  	
  be repaid

  (main facility)

  	
   

  	
  Amount to 

  be repaid

  (swingline)

  	
   

  	
  New 

  Drawing 

  	
   

  	
  Net Drawing Amount

  	
   

  	
  Cash Flow

  	
   

  	
  Utilisation

  Date

  	
   

  	
  Repayment

  Date

  	
   

  	
  Settlement

  Instructions

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

331

 

5.                                       The
Asset Report for the Borrower is attached.

 

Yours faithfully

 

 

	
   

  	
   

  
	
  Authorised
  Signatory

  
	
  for and on
  behalf of

  
	
  BNP Paribas as
  Facility Agent

  

 

332

 

SCHEDULE
3

(LETTERS OF CREDIT)

 

From:                  BNP Paribas

 

To:                              [CALYON/RBS/
BNPP as appropriate]

 

Dated:             [·]

 

Dear Sirs,

 

1.                                       We
refer to the agreement (the “Facility Agreement”)
dated 21 December 2005, and amended and restated as of March [·] 2007, and made between, among
others, Hertz International Ltd., BNP Paribas as Facility Agent and the
financial institutions named therein as Banks. 
Terms defined in the Facility Agreement shall have the same meaning in this
notice.

 

2.                                       This
notice is irrevocable.

 

3.                                       We
hereby give you notice that, pursuant to Clause 10.1 (Advances and
Letters of Credit) of the Facility Agreement, [•], the L/C
Issuer, needs to issue Letters of Credit as follows:

 

	
  Borrower

  	
   

  	
  Maximum Amount

  under Letter of Credit

  	
   

  	
  Issue Date

  	
   

  	
  Expiry Date

  	
   

  	
  Beneficiary

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

4.                                       The
Asset Report for the Borrower is attached.

 

Yours faithfully

 

	
   

  	
   

  
	
  Authorised
  Signatory

  
	
  for and on
  behalf of

  
	
  BNP Paribas as
  Facility Agent

  

 

333

 

(W)

 

FORM OF SPECIFIED ECF AMOUNT CERTIFICATE

 

This Officer’s Certificate (this “Certificate”) is delivered to you on behalf of the Company
(as hereinafter defined) pursuant to Clause 20.1(a) (Annual Statements) of the Senior Bridge Facilities
Agreement, dated 21 December 2005, and amended and restated as of March [·] 2007 (as amended, supplemented,
restated or modified from time to time, the “Senior
Bridge Facilities Agreement”), among Hertz International Ltd., a
Delaware corporation (the “Company”), the
Original Borrowers, the Original Guarantors, Hertz Europe Limited, as
Coordinator, BNP Paribas and The Royal Bank of Scotland plc as Mandated Lead
Arrangers, CALYON as Co-Arranger, BNP Paribas as Facility Agent and the
financial institution party thereto from time to time.  Terms defined in the Senior Bridge Facilities
Agreement and not otherwise defined herein are used herein as therein defined.

 

1.                                  I am the duly
elected, qualified and acting Chief Financial Officer of the Company.

 

2.                                  I
have reviewed and am familiar with the contents of this Certificate.  I am providing this Certificate solely in my
capacity as an officer of the Company. 
The matters set forth herein are true to the best of my knowledge after
diligent and thorough inquiry.

 

3.                                  I
have reviewed the terms of the Senior Bridge Facilities Agreement and the other
Finance Documents and have made or caused to be made under my supervision, a
review in reasonable detail of the transactions and financial condition of the
Company and its subsidiaries (including, without limitation, the Obligors)
during the Relevant Period.

 

4.                                  Attached
hereto as Annex 1 are the computations showing (in reasonable detail) each of
the Specified ECF Amount, the Relevant Maximum Amount and the Excess Cash
Flow.  All such computations are true and
correct.

 

334

 

 IN WITNESS
WHEREOF, I have executed this Certificate on behalf of the Company this
         day of
            .

 

	
   

  	
  HERTZ
  INTERNATIONAL, LTD.

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title: Chief
  Financial Officer

  

 

335

 

ANNEX 1

 

COMPLIANCE
WORKSHEET

 

The calculations described herein is as of
                    
    ,          (the
“Computation Date”) and pertains to the
period from
                    
    ,          to
                    
    ,          (the
“Relevant Period”).

 

	
  Part A. Specified ECF
  Amount

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Do Take-Out
  Financings that have been completed aggregate to an amount equal to 50% or
  more of the Initial Maximum Amount (determined on the last day of the last
  ended Relevant Period)?

  	
   

  	
  YES/NO

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  If NO, Specified ECF Amount :

  	
   

  	
  0

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  If YES, then:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Aggregate Euro
  Amount of the Take-Out Financing completed on such date with respect to the
  A1 Facility, A2 Facility and the C Facility.

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Relevant
  Maximum Amount (as computed in Part B below).

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Item 4 divided
  by Item 5.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Excess Cash
  Flow (as computed in Part C below).

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Specified ECF
  Amount (Item 6 multiplied by Item 7) :

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Part B. Relevant
  Maximum Amount 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  The Euro Amount
  of the Total A1 Commitments (determined on the last day of the last ended
  Relevant Period).

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  The Euro Amount
  of the Total A2 Commitments (determined on the last day of the last ended
  Relevant Period).

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  The Total C
  Commitments (determined on the last day of the last ended Relevant Period)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Relevant
  Maximum Amount (the sum of Item 1, Item
  2 and Item 3) :

  	
   

  	
  $

  

 

336

 

	
  Part C  Excess Cash Flow

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  EBITDA for the
  Relevant Period.

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Any Capital
  Expenditure made in cash during the Relevant Period (except to the extent
  financed with (x) net increase in indebtedness incurred under
  paragraphs (n), (q) (to the extent relating to indebtedness
  incurred under the Dutch Capital Lease Indebtedness and UK Capital Lease
  Indebtedness (or any refinancings thereof which are made pursuant to said
  paragraph (q)) or (x) of the definition of “Permitted Indebtedness”
  during the Relevant Period or (y) Equity Financing made during the
  Relevant Period by any Parent Company to any member of the Group.

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Item 1 minus
  Item 2.

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Any principal
  payments resulting in a permanent reduction of any Financial Indebtedness of
  the Parent or any of its subsidiaries made during the Relevant Period.

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Item 3 minus
  Item 4.

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Interest
  Expense for the Relevant Period.

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Item 5 minus
  Item 6.

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Any taxes paid
  or payable in cash during the Relevant Period (net of any refunds or rebates).

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Item 7 minus
  Item 8.

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Without
  duplication of Item 2 or Item 12 of this Part C, any Investment
  described in the definition of “Permitted Investments” (other than with
  respect to Cash Equivalents and transactions between members of the Group)
  which was paid in cash during the Relevant Period (except to the extent
  financed with (x) net increase in indebtedness incurred under
  paragraphs (n), (q) (to the extent relating to indebtedness
  incurred under the Dutch Capital Lease Indebtedness and UK Capital Lease
  Indebtedness (or any refinancings thereof which are made pursuant to said
  paragraph (q)) or (x) of the definition of “Permitted Indebtedness”
  during the Relevant Period or (y) Equity Financing made during the
  Relevant Period by any Parent Company to any member of the Group), net of any
  amounts received in cash in respect of Permitted Investments.

  	
   

  	
  $

  

 

337

 

	
  11.

  	
   

  	
  Item 9 minus
  Item 10

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Without
  duplication of Item 2 or Item 10 of this Part C, any Consideration paid
  in cash during the Relevant Period in respect of Permitted Acquisitions
  (other than Permitted Acquisitions to the extent financed with (x) net
  increase in indebtedness incurred under paragraphs (e), (n), (q) (to
  the extent relating to indebtedness incurred under the Dutch Capital Lease
  Indebtedness and UK Capital Lease Indebtedness (or any refinancings thereof
  which are made pursuant to said paragraph (q)) or (x) of the
  definition of “Permitted Indebtedness” during the Relevant Period or
  (y) Equity Financing made during the Relevant Period by any Parent
  Company to any member of the Group).

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Item 11 minus
  Item 12.

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
   

  	
  To the extent
  not included in EBITDA, pension cash costs as advised by the Parent’s
  pensions actuarial adviser including any cash cost of funding any portion of
  any deficit of any retirement, redundancy, statutory or voluntary profit
  sharing plan or statutory severance plan or arrangement covering individuals
  who are employed by any Obligor, the Parent or any affiliate of any of them
  and as to which any of the same has any direct or indirect obligation or
  liability for unfunded benefits thereunder.

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
   

  	
  Item 13 minus
  Item 14

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
   

  	
  The Change in
  Consolidated Working Capital for the Relevant Period.

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
   

  	
  Item 15 plus
  Item 16.

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
   

  	
  Hertz Variable
  Debt Amount for the Relevant Period.

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
   

  	
  Excess Cash
  Flow (Item 17 plus Item 18) :

  	
   

  	
  $

  

 

338

 

SIGNATURES

 

AMENDMENT
AND RESTATEMENT AGREEMENT RELATING TO THE

SENIOR BRIDGE FACILITIES AGREEMENT

 

 

PARENT

 

	
  EXECUTED by
  HERTZ INTERNATIONAL, LTD.

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  )

  
	
  and

  	
   

  

 

1

 

THE
COORDINATOR

 

	
  Executed by
  HERTZ EUROPE LIMITED

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  )

  
	
  and

  	
   

  

 

2

 

THE
ORIGINAL BORROWERS

 

AUSTRALIA

 

	
  Signed for HA
  FUNDING PTY LIMITED

  	
  )

  
	
  by its
  attorney/s

  	
  )

  
	
  under power of
  attorney dated

  	
   

  

 

3

 

THE
ORIGINAL BORROWERS

BELGIUM

 

	
  Executed by
  HERTZ BELGIUM N.V.

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  )

  
	
  and

  	
   

  

 

4

 

THE
ORIGINAL BORROWERS

 

CANADA

 

	
  Executed by
  HERTZ CANADA LIMITED      

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  )

  
	
  and

  	
   

  

 

5

 

THE
ORIGINAL BORROWERS

 

FRANCE

 

	
  Executed by
  HERTZ FRANCE SAS

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  )

  
	
  and

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Executed by
  EQUIPOLE FINANCE SERVICES SAS

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  )

  
	
  and

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Executed by
  HERTZ EQUIPEMENT FRANCE SAS

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  )

  
	
  and

  	
   

  

 

6

 

THE
ORIGINAL BORROWERS

 

GERMANY

 

	
  Executed by
  HERTZ AUTOVERMIETUNG GmbH

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  )

  
	
  and

  	
   

  

 

7

 

THE
ORIGINAL BORROWERS

 

ITALY

 

	
  Executed by
  HERTZ ITALIANA S.p.A.

  	
  )

  
	
  acting by

  	
  )

  
	
  pursuant to
  power of attorney dated

  	
   

  

 

8

 

THE
ORIGINAL BORROWERS

 

THE
NETHERLANDS

 

	
  Executed by BNS
  AUTOMOBILE FUNDING B.V.

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  )

  
	
  and

  	
   

  

 

9

 

THE
ORIGINAL BORROWERS

 

SWITZERLAND

 

	
  Executed by
  HERTZ AG

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  )

  
	
  and

  	
   

  

 

10

 

THE
ORIGINAL BORROWERS

 

UNITED
KINGDOM

 

	
  Executed by
  HERTZ (U.K.) LIMITED

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  )

  
	
  and

  	
   

  

 

11

 

THE
ORIGINAL GUARANTORS

 

PARENT

 

	
  Executed by
  HERTZ INTERNATIONAL, LTD.

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  )

  
	
  and

  	
   

  

 

12

 

THE
ORIGINAL GUARANTORS

 

AUSTRALIA

 

	
  Signed for
  HERTZ AUSTRALIA PTY. LIMITED

  	
  )

  
	
   

  	
  )

  
	
  by its
  attorney/s

  	
  )

  
	
  under power of
  attorney dated

  	
   

  

 

13

 

THE
ORIGINAL GUARANTORS

BELGIUM

 

	
  Executed by
  HERTZ BELGIUM N.V.

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  )

  
	
  and

  	
   

  

 

14

 

THE
ORIGINAL GUARANTORS

 

FRANCE

 

	
  Executed by
  HERTZ FRANCE SAS

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  )

  
	
  and

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Executed by
  HERTZ EQUIPEMENT FRANCE SAS

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  )

  
	
  and

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Executed by
  EQUIPOLE FINANCE SERVICES SAS

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  )

  
	
  and

  	
   

  

 

15

 

THE
ORIGINAL GUARANTORS

 

GERMANY

 

	
  Executed by
  HERTZ AUTOVERMIETUNG GmbH

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  )

  
	
  and

  	
   

  

 

16

 

THE
ORIGINAL GUARANTORS

 

ITALY

 

	
  Executed by
  HERTZ ITALIANA S.p.A.

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  )

  
	
  pursuant to
  power of attorney dated

  	
   

  

 

17

 

THE
ORIGINAL GUARANTORS

 

SPAIN

 

	
  Executed by
  HERTZ DE ESPAÑA S.A.

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  )

  
	
  and

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Executed by
  HERTZ ALQUILER DE MAQUINARIA S.L.

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  )

  
	
  and

  	
   

  

 

18

 

THE
ORIGINAL GUARANTORS

 

SWITZERLAND

 

	
  Executed by
  HERTZ AG

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  )

  
	
  and

  	
   

  

 

19

 

THE
ORIGINAL GUARANTORS

 

THE
NETHERLANDS

 

	
  Executed by BNS
  AUTOMOBILE FUNDING B.V.

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  )

  
	
  and

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Executed by
  STUURGROEP HOLLAND B.V.

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  )

  
	
  and

  	
   

  

 

20

 

THE
ORIGINAL GUARANTORS

 

UNITED
KINGDOM

 

	
  Executed by
  HERTZ (U.K.) LIMITED

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  )

  
	
  and

  	
   

  

 

21

 

	
  THE MANDATED
  LEAD ARRANGERS

  
	
   

  
	
  BNP PARIBAS

  
	
   

  
	
  By:

  
	
   

  
	
  Name:

  
	
   

  
	
   

  
	
  THE ROYAL BANK
  OF SCOTLAND PLC

  
	
   

  
	
  By:

  
	
   

  
	
  Name:

  

 

22

 

	
  CO-ARRANGER

  
	
   

  
	
  CALYON

  
	
   

  
	
  By:

  
	
   

  
	
  Name:

  

 

23

 

	
  THE
  JOINT BOOKRUNNERS

  
	
   

  
	
  BNP PARIBAS

  
	
   

  
	
  By:

  
	
   

  
	
  Name:

  
	
   

  
	
   

  
	
  THE ROYAL BANK
  OF SCOTLAND PLC

  
	
   

  
	
  By:

  
	
   

  
	
  Name:

  
	
   

  
	
   

  
	
  CALYON

  
	
   

  
	
  By:

  
	
   

  
	
  Name:

  

 

24

 

	
  THE
  FACILITY AGENT

  
	
   

  
	
  BNP PARIBAS

  
	
   

  
	
  By:

  
	
   

  
	
  Name:

  
	
   

  
	
  Address:

  	
  3 rue d’Antin

  
	
   

  	
  75078 Paris
  Cedex 02

  
	
   

  	
  France

  
	
   

  	
   

  
	
  Attention:

  	
  Jérôme Eschbach

  
	
  Phone:

  	
  +33 1 42 98 19
  40

  
	
  Fax:

  	
  +33 1 42 98 60
  02

  
	
  Email:

  	
  jerome.eschbach@bnpparibas.com

  

 

25

 

	
  THE
  SECURITY AGENT

  
	
   

  
	
  BNP PARIBAS

  
	
   

  
	
  By:

  
	
   

  
	
  Name:

  

 

26

 

	
  THE
  GLOBAL COORDINATOR

  
	
   

  
	
  BNP PARIBAS

  
	
   

  
	
  By:

  
	
   

  
	
  Name:

  
	
   

  	
   

  
	
  Address:

  	
  3 rue d’Antin

  
	
   

  	
  75078 Paris
  Cedex 02

  
	
   

  	
  France

  
	
   

  	
   

  
	
  Attention:

  	
  Jérôme Eschbach

  
	
  Phone:

  	
  +33 1 42 98 19
  40

  
	
  Fax:

  	
  +33 1 42 98 60
  02

  
	
  Email:

  	
  jerome.eschbach@bnpparibas.com

  

 

27

 

	
  THE
  CANADIAN PERMITTED BANK

  
	
   

  
	
   

  
	
  BNP PARIBAS
  (CANADA)

  
	
   

  
	
  By:

  
	
   

  
	
  Name:

  

 

28

 

	
  THE
  BANKS

  
	
   

  
	
  BNP PARIBAS

  
	
   

  
	
  By:

  
	
   

  
	
  Name:

  
	
   

  
	
   

  
	
  BNP PARIBAS
  (CANADA)

  
	
   

  
	
  By:

  
	
   

  
	
  Name:

  
	
   

  
	
   

  
	
  THE ROYAL BANK
  OF SCOTLAND PLC

  
	
   

  
	
  By:

  
	
   

  
	
  Name:

  
	
   

  
	
   

  
	
  CALYON

  
	
   

  
	
  By:

  
	
   

  
	
  Name:

  
	
   

  
	
   

  
	
  INDOSUEZ
  FINANCE (UK) LIMITED

  
	
   

  
	
  By:

  
	
   

  
	
  Name:

  

 

29

 

SIGNATURES

 

THE PARENT

 

	
  EXECUTED
  as a Deed by HERTZ INTERNATIONAL, LTD.

  	
  )

  
	
   

  	
  )

  
	
  acting by 

  	
  /s/ Nuns
  Moodliar

  	
   

  	
  )

  
	
  and

  	
  /s/ Jim McGill

  	
   

  	
  )

  

 

S-1

 

THE BORROWERS

 

	
  EXECUTED
  as a Deed by HA FUNDING PTY LIMITED (ACN 117 549 498)

  	
  )

  
	
   

  	
  )

  
	
  acting by 

  	
  )

  
	
  by its
  attorney/s

  	
  )

  
	
  under power of
  attorney dated 2 February 2007

  	
  )

  
	
   

  	
   

  
	
   

  	
  /s/ Nuns
  Moodliar

  	
   

  	
   

  
				

 

S-2

 

THE BORROWERS

 

	
  EXECUTED
  as a Deed by HERTZ BELGIUM N.V.

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  /s/ Nuns
  Moodliar

  	
   

  	
  )

  
	
  and

  	
  /s/ Jim McGill

  	
   

  	
  )

  
					

 

S-3

 

THE BORROWERS

 

	
  EXECUTED
  as a Deed by HERTZ CANADA LIMITED

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  /s/ Nuns
  Moodliar

  	
   

  	
  )

  
	
  and

  	
  /s/ Jim McGill

  	
   

  	
  )

  
					

 

S-4

 

THE BORROWERS

 

	
  EXECUTED
  as a Deed by HERTZ FRANCE SAS

  	
  )

  
	
   

  	
  )

  
	
  acting by 

  	
  /s/ Nuns
  Moodliar

  	
   

  	
  )

  
	
  and

  	
  /s/ Jim McGill

  	
   

  	
  )

  
					

 

S-5

 

THE BORROWERS

 

	
  EXECUTED
  as a Deed by EQUIPOLE FINANCE SERVICES SAS

  	
  )

  
	
   

  	
  )

  
	
  acting by 

  	
  /s/ Nuns
  Moodliar

  	
   

  	
  )

  
	
  and

  	
  /s/ Jim McGill

  	
   

  	
  )

  
					

 

S-6

 

THE BORROWERS

 

	
  EXECUTED
  as a Deed by HERTZ EQUIPEMENT FRANCE SAS

  	
  )

  
	
   

  	
  )

  
	
  acting by 

  	
  /s/ Nuns
  Moodliar

  	
   

  	
  )

  
	
  and

  	
  /s/ Jim McGill

  	
   

  	
  )

  
					

 

S-7

 

THE BORROWERS

 

	
  EXECUTED
  as a Deed by HERTZ AUTOVERMIETUNG GMBH

  	
  )

  
	
   

  	
  )

  
	
  acting by 

  	
  /s/ Nuns
  Moodliar

  	
   

  	
  )

  
	
  and

  	
  /s/ Jim McGill

  	
   

  	
  )

  
					

 

S-8

 

THE BORROWERS

 

	
  EXECUTED
  as a Deed by HERTZ ITALIANA S.P.A.

  	
  )

  
	
   

  	
  )

  
	
  acting by its
  attorney Riccardo Sallustio

  	
  )

  
	
   

  	
   

  
	
   

  	
  /s/ Riccardo
  Sallustio

  	
   

  	
  )

  
	
   

  	
   

  	
   

  	
   

  
	
  In the presence
  of

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Richard J.
  Saville

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Richard J.
  Saville

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Notary Public
  London, England

  	
   

  	
   

  
					

 

S-9

 

THE BORROWERS

 

	
  EXECUTED
  as a Deed by BNS AUTOMOBILE FUNDING B.V.

  	
  )

  
	
   

  	
  )

  
	
  acting by 

  	
  /s/ Nuns
  Moodliar

  	
   

  	
  )

  
	
  and

  	
  /s/ Jim McGill

  	
   

  	
  )

  
					

 

S-10

 

THE BORROWERS

 

	
  EXECUTED
  as a Deed by HERTZ AG

  	
  )

  
	
   

  	
  )

  
	
  acting by 

  	
  /s/ Nuns
  Moodliar

  	
   

  	
  )

  
	
  and

  	
  /s/ Jim McGill

  	
   

  	
  )

  
					

 

S-11

 

THE BORROWERS

 

	
  EXECUTED
  as a Deed by HERTZ (U.K.) LIMITED

  	
  )

  
	
   

  	
  )

  
	
  acting by 

  	
  /s/ Nuns
  Moodliar

  	
   

  	
  )

  
	
  and

  	
  /s/ Jim McGill

  	
   

  	
  )

  
					

 

S-12

 

THE GUARANTORS

 

	
  EXECUTED
  as a Deed by HERTZ INTERNATIONAL, LTD.

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  /s/ Nuns
  Moodliar

  	
   

  	
  )

  
	
  and

  	
  /s/ Jim McGill

  	
   

  	
  )

  
					

 

S-13

 

THE GUARANTORS

	
  EXECUTED
  as a Deed by HERTZ AUSTRALIA PTY. LTD

  	
  )

  
	
  (ABN
  31 004 407 087)

  	
  )

  
	
   

  	
  )

  
	
  acting by 

  	
  )

  
	
  by its
  attorney/s

  	
  )

  
	
  under power of
  attorney dated 7 February 2007

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Nuns
  Moodliar

  	
   

  	
   

  
					

 

S-14

 

THE GUARANTORS

 

	
  EXECUTED
  as a Deed by HERTZ BELGIUM N.V.

  	
  )

  
	
   

  	
  )

  
	
  acting by

  	
  /s/ Nuns
  Moodliar

  	
   

  	
  )

  
	
  and

  	
  /s/ Jim McGill

  	
   

  	
  )

  
					

 

S-15

 

THE GUARANTORS

 

	
  EXECUTED
  as a Deed by HERTZ FRANCE SAS

  	
  )

  
	
   

  	
  )

  
	
  acting by 

  	
  /s/ Nuns
  Moodliar

  	
   

  	
  )

  
	
  and

  	
  /s/ Jim McGill

  	
   

  	
  )

  
					

 

S-16

 

THE GUARANTORS

 

	
  EXECUTED
  as a Deed by HERTZ EQUIPEMENT FRANCE SAS

  	
  )

  
	
   

  	
  )

  
	
  acting by 

  	
  /s/ Nuns
  Moodliar

  	
   

  	
  )

  
	
  and

  	
  /s/ Jim McGill

  	
   

  	
  )

  
					

 

S-17

 

THE GUARANTORS

 

	
  EXECUTED
  as a Deed by EQUIPOLE FINANCE SERVICES SAS

  	
  )

  
	
   

  	
  )

  
	
  acting by 

  	
  /s/ Nuns
  Moodliar

  	
   

  	
  )

  
	
  and

  	
  /s/ Jim McGill

  	
   

  	
  )

  
					

 

S-18

 

THE GUARANTORS

 

	
  EXECUTED
  as a Deed by HERTZ AUTOVERMIETUNG GMBH

  	
  )

  
	
   

  	
  )

  
	
  acting by 

  	
  /s/ Nuns
  Moodliar

  	
   

  	
  )

  
	
  and

  	
  /s/ Jim McGill

  	
   

  	
  )

  
					

 

S-19

 

THE GUARANTORS

 

	
  EXECUTED
  as a Deed by HERTZ ITALIANA S.P.A.

  	
  )

  
	
   

  	
  )

  
	
  acting by its
  attorney Riccardo Sallustio

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Riccardo
  Sallustio

  	
   

  	
  )

  
	
   

  	
   

  	
   

  	
   

  
	
  In the presence
  of

  	
   

  	
  )

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Richard J.
  Saville

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Richard Saville

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Notary Public
  London, England

  	
   

  	
   

  
					

 

S-20

 

THE GUARANTORS

 

	
  EXECUTED
  as a Deed by BNS AUTOMOBILE FUNDING B.V.

  	
  )

  
	
   

  	
  )

  
	
  acting by 

  	
  /s/ Nuns
  Moodliar

  	
   

  	
  )

  
	
  and

  	
  /s/ Jim McGill

  	
   

  	
  )

  
					

 

S-21

 

THE GUARANTORS

 

	
  EXECUTED
  as a Deed by STUURGROEP HOLLAND B.V.

  	
  )

  
	
   

  	
  )

  
	
  acting by 

  	
  /s/ Nuns
  Moodliar

  	
   

  	
  )

  
	
  and

  	
  /s/ Jim McGill

  	
   

  	
  )

  
					

 

S-22

 

THE GUARANTORS

 

	
  EXECUTED
  as a Deed by HERTZ DE ESPAÑA S.A.

  	
  )

  
	
   

  	
  )

  
	
  acting by 

  	
  /s/ Alfredo
  Ruiz Plaza

  	
   

  	
  )

  
	
  and

  	
  /s/ Juan
  Carlos Azcona

  	
   

  	
  )

  
					

 

S-23

 

THE GUARANTORS

 

	
  EXECUTED
  as a Deed by HERTZ ALQUILER DE MAQUINARIA S.L.

  	
  )

  
	
   

  	
  )

  
	
  acting by 

  	
  /s/ Alfredo
  Ruiz Plaza

  	
   

  	
  )

  
	
  and

  	
  /s/ Juan
  Carlos Azcona

  	
   

  	
  )

  
					

 

S-24

 

THE GUARANTORS

 

	
  EXECUTED
  as a Deed by HERTZ AG

  	
  )

  
	
   

  	
  )

  
	
  acting by 

  	
  /s/ Nuns
  Moodliar

  	
   

  	
  )

  
	
  and

  	
  /s/ Jim McGill

  	
   

  	
  )

  
					

 

S-25

 

THE GUARANTORS

 

	
  EXECUTED
  as a Deed by HERTZ (U.K.) LIMITED

  	
  )

  
	
   

  	
  )

  
	
  acting by 

  	
  /s/ Nuns
  Moodliar

  	
   

  	
  )

  
	
  and

  	
  /s/ Jim McGill

  	
   

  	
  )

  
					

 

S-26

 

THE GUARANTORS

 

	
  EXECUTED
  as a Deed by HERTZ EUROPE LIMITED

  	
  )

  
	
   

  	
  )

  
	
  acting by 

  	
  /s/ Nuns
  Moodliar

  	
   

  	
  )

  
	
  and

  	
  /s/ Jim McGill

  	
   

  	
  )

  
					

 

S-27

 

	
  THE COORDINATOR

  	
   

  
	
   

  	
   

  
	
  EXECUTED
  as a Deed by HERTZ EUROPE LIMITED

  	
  )

  
	
   

  	
  )

  
	
  acting by 

  	
  /s/ Nuns
  Moodliar)

  	
   

  	
  )

  
	
  and 

  	
  /s/ Jim McGill)

  	
   

  	
  )

  
	
   

  	
   

  
					

 

S-28

 

	
  THE
  MANDATED LEAD ARRANGERS

  	
   

  
	
   

  	
   

  
	
  EXECUTED
  as a Deed by BNP PARIBAS

  	
  )

  
	
   

  	
  )

  
	
  acting by Iyadh
  Laalai

  	
  )

  
	
   

  	
   

  
	
   

  	
  /s/ Iyadh Laalai

  	
   

  	
   

  
	
   

  	
   

  
	
  Paris, March 21st
  , 2007

  	
   

  
	
   

  	
   

  
	
  In the presence
  of 

  	
  /s/
  Mr. Charles Egly

  	
   

  	
  )

  
					

 

S-29

 

	
  THE
  MANDATED LEAD ARRANGERS

  	
   

  
	
   

  	
   

  
	
  EXECUTED
  as a Deed by THE ROYAL BANK OF SCOTLAND PLC

  	
  )

  
	
   

  	
  )

  
	
  acting by its
  Attorney

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Authorized Signatory

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  
	
   

  	
  Senior Director

  	
   

  
	
   

  	
  London

  	
   

  
	
   

  	
  )

  
	
  In the presence
  of 

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Shanika Amarasekara

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Shanika Amarasekara

  	
   

  
	
   

  	
  13 S. Bishopsgate

  	
   

  
	
   

  	
  London

  	
   

  
	
   

  	
  EC2M 3UR

  	
   

  

 

S-30

 

	
  THE
  CO-ARRANGER

  	
   

  
	
   

  	
   

  
	
  EXECUTED
  as a Deed by CALYON

  	
  )

  
	
   

  	
  )

  
	
  acting by
  Nathalie Nosser

  	
  )

  
	
   

  	
  )

  
	
   

  	
  /s/ Nathalie Nosser

  	
   

  	
   

  
	
   

  	
  in Paris in the presence of 

  	
  /s/ Richard Sinclair

  	
   

  	
   

  
					

 

S-31

 

	
  THE JOINT BOOKRUNNERS

  	
   

  
	
   

  	
   

  
	
  EXECUTED
  as a Deed by BNP PARIBAS

  	
  )

  
	
   

  	
  )

  
	
  acting by Iyadh
  Laalai

  	
  )

  
	
   

  	
   

  
	
   

  	
  /s/ Iyadh Laalai

  	
   

  	
   

  
	
   

  	
   

  
	
  Paris, March 21st
  , 2007

  	
   

  
	
   

  	
   

  
	
  In the presence
  of 

  	
  /s/
  Mr. Charles Egly

  	
   

  	
  )

  
					

 

S-32

 

	
  THE JOINT BOOKRUNNERS

  	
   

  
	
   

  	
   

  
	
  EXECUTED
  as a Deed by THE ROYAL BANK OF SCOTLAND PLC

  	
  )

  
	
   

  	
  )

  
	
  acting by its Attorney

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Authorized Signatory

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  	
   

  
	
   

  	
  Senior Director

  	
   

  	
   

  
	
   

  	
  London

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  )

  
	
  In the presence
  of

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Shanika Amarasekara

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Shanika
  Amarasekara

  	
   

  	
   

  
	
   

  	
  13 S.
  Bishopsgate

  	
   

  	
   

  
	
   

  	
  London

  	
   

  	
   

  
	
   

  	
  EC2M 3UR

  	
   

  	
   

  

 

S-33

 

	
  THE JOINT BOOKRUNNERS

  	
   

  
	
   

  	
   

  
	
  EXECUTED
  as a Deed by CALYON

  	
  )

  
	
   

  	
  )

  
	
  acting by
  Nathalie Nosser

  	
  )

  
	
   

  	
   

  
	
   

  	
  /s/ Nathalie Nosser

  	
   

  	
  )

  
	
   

  	
  in Paris in the presence of 

  	
  /s/ Richard Sinclair

  	
   

  	
   

  
					

 

S-34

 

	
  THE FACILITY AGENT

  	
   

  
	
   

  	
   

  
	
  EXECUTED
  as a Deed by BNP PARIBAS

  	
  )

  
	
   

  	
  )

  
	
  acting by Iyadh
  Laalai

  	
  )

  
	
   

  	
   

  
	
   

  	
  /s/ Iyadh Laalai

  	
   

  	
  )

  
	
   

  	
   

  
	
  Paris, March 21st
  , 2007

  	
   

  
	
   

  	
   

  
	
  In the presence
  of 

  	
  /s/
  Mr. Charles Egly

  	
   

  	
   

  
					

 

S-35

 

	
  THE SECURITY AGENT

  	
   

  
	
   

  	
   

  
	
  EXECUTED
  as a Deed by BNP PARIBAS

  	
  )

  
	
   

  	
  )

  
	
  acting by Iyadh
  Laalai

  	
  )

  
	
   

  	
   

  
	
   

  	
  /s/ Iyadh Laalai

  	
   

  	
  )

  
	
   

  	
   

  
	
  Paris, March 21st
  , 2007

  	
   

  
	
   

  	
   

  
	
  In the presence
  of 

  	
  /s/
  Mr. Charles Egly

  	
   

  	
   

  
					

 

S-36

 

	
  THE GLOBAL COORDINATOR

  	
   

  
	
   

  	
   

  
	
  EXECUTED
  as a Deed by BNP PARIBAS

  	
  )

  
	
   

  	
  )

  
	
  acting by Iyadh
  Laalai

  	
  )

  
	
   

  	
   

  
	
   

  	
  /s/ Iyadh Laalai

  	
   

  	
  )

  
	
   

  	
   

  
	
  Paris, March 21st
  , 2007

  	
   

  
	
   

  	
   

  
	
  In the presence
  of 

  	
  /s/
  Mr. Charles Egly

  	
   

  	
   

  
					

 

S-37

 

	
  THE BANKS

  	
   

  
	
   

  	
   

  
	
  EXECUTED
  as a Deed by BNP PARIBAS

  	
  )

  
	
   

  	
  )

  
	
  acting by Iyadh
  Laalai

  	
  )

  
	
   

  	
   

  
	
   

  	
  /s/ Iyadh Laalai

  	
   

  	
  )

  
	
   

  	
   

  
	
  Paris, March 21st
  , 2007

  	
   

  
	
   

  	
   

  
	
  In the presence
  of 

  	
  /s/
  Mr. Charles Egly

  	
   

  	
   

  
					

 

S-38

 

	
  THE BANKS

  	
   

  
	
   

  	
   

  
	
  EXECUTED
  as a Deed by BNP PARIBAS (CANADA)

  	
  )

  
	
   

  	
  )

  
	
  acting by Iyadh
  Laalai

  	
  )

  
	
   

  	
   

  
	
   

  	
  /s/ Iyadh Laalai

  	
   

  	
   

  
	
   

  	
   

  
	
  Paris, March 21st
  , 2007

  	
   

  
	
   

  	
   

  
	
  In the presence
  of 

  	
  /s/
  Mr. Charles Egly

  	
   

  	
   

  
	
   

  	
  )

  
					

 

S-39

 

	
  THE BANKS

  	
   

  
	
   

  	
   

  
	
  EXECUTED
  as a Deed by THE ROYAL BANK OF SCOTLAND PLC

  	
  )

  
	
   

  	
  )

  
	
  acting by its
  Attorney

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Authorized Signatory

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  
	
   

  	
  Senior Director

  	
   

  
	
   

  	
  London

  	
   

  
	
   

  	
   

  	
  )

  
	
  In the presence
  of

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Shanika Amarasekara

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Shanika
  Amarasekara

  	
   

  
	
   

  	
  13 S.
  Bishopsgate

  	
   

  
	
   

  	
  London

  	
   

  
	
   

  	
  EC2M 3UR

  	
   

  

 

S-40

 

	
  THE BANKS

  	
   

  
	
   

  	
   

  
	
  EXECUTED
  as a Deed by CALYON

  	
  )

  
	
   

  	
  )

  
	
  acting by
  Nathalie Nosser

  	
  )

  
	
   

  	
   

  
	
   

  	
  /s/ Nathalie Nosser

  	
   

  	
   

  
	
   

  	
  in Paris in the presence of 

  	
  /s/ Richard Sinclair

  	
   

  	
  )

  
					

 

S-41

 

	
  THE BANKS

  	
   

  
	
   

  	
   

  
	
  EXECUTED
  as a Deed by INDOSUEZ FINANCE (UK) LIMITED

  	
  )

  
	
   

  	
  )

  
	
  acting by Nathalie
  Nosser

  	
  )

  
	
   

  	
   

  
	
   

  	
  /s/ Nathalie Nosser

  	
   

  	
   

  
	
   

  	
  in Paris in the presence of 

  	
  /s/ Richard Sinclair

  	
   

  	
  )

  
					

 

S-42

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]