Document:

EXHIBIT 4.9.11

SECOND AMENDED AND RESTATED COLLATERAL AGENCY
AGREEMENT

among

HERTZ VEHICLE FINANCING LLC,

as a grantor,

HERTZ GENERAL INTEREST LLC,

as a grantor,

THE HERTZ CORPORATION,

as Servicer,

THE HERTZ CORPORATION,

as a secured party,

BNY MIDWEST TRUST COMPANY

as a secured party,

not in its individual capacity but solely

as Trustee,

and

BNY MIDWEST TRUST COMPANY

not in its individual capacity but solely

as Collateral Agent,

Dated as of January 26, 2007

Table of Contents

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I 

  	
  CERTAIN DEFINITIONS

  	
   

  	
  2

  
	
  SECTION 1.1.

  	
   

  	
  Certain
  Definitions

  	
   

  	
  2

  
	
  SECTION 1.2.

  	
   

  	
  Interpretation
  and Construction

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II 

  	
  COLLATERAL AGENT AS LIENHOLDER FOR THE SECURED
  PARTIES

  	
   

  	
  2

  
	
  SECTION 2.1.

  	
   

  	
  Security
  Interest

  	
   

  	
  2

  
	
  SECTION 2.2.

  	
   

  	
  Designation of
  HVF Vehicles and HGI Vehicles

  	
   

  	
  7

  
	
  SECTION 2.3.

  	
   

  	
  Redesignation of
  Vehicles

  	
   

  	
  7

  
	
  SECTION 2.4.

  	
   

  	
  Servicer’s Fleet
  Reports

  	
   

  	
  8

  
	
  SECTION 2.5.

  	
   

  	
  Collateral
  Accounts

  	
   

  	
  8

  
	
  SECTION 2.6.

  	
   

  	
  Certificates of
  Title

  	
   

  	
  11

  
	
  SECTION 2.7.

  	
   

  	
  Release of
  Collateral

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III 

  	
  THE SERVICER

  	
   

  	
  13

  
	
  SECTION 3.1.

  	
   

  	
  Acceptance of Appointment

  	
   

  	
  13

  
	
  SECTION 3.2.

  	
   

  	
  Servicer Functions

  	
   

  	
  13

  
	
  SECTION 3.3.

  	
   

  	
  The Servicer Not to Resign

  	
   

  	
  13

  
	
  SECTION 3.4.

  	
   

  	
  Servicing Rights of Collateral Agent

  	
   

  	
  13

  
	
  SECTION 3.5.

  	
   

  	
  Incumbency Certificate

  	
   

  	
  14

  
	
  SECTION 3.6.

  	
   

  	
  Effective Period and Termination

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV 

  	
  REPRESENTATIONS, WARRANTIES AND COVENANTS

  	
   

  	
  14

  
	
  SECTION 4.1.

  	
   

  	
  Representations and Warranties of the Grantors

  	
   

  	
  14

  
	
  SECTION 4.2.

  	
   

  	
  Representations and Warranties of the Servicer

  	
   

  	
  15

  
	
  SECTION 4.3.

  	
   

  	
  Covenants of Grantors

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V 

  	
  THE COLLATERAL AGENT

  	
   

  	
  17

  
	
  SECTION 5.1.

  	
   

  	
  Appointment

  	
   

  	
  17

  
	
  SECTION 5.2.

  	
   

  	
  Representations

  	
   

  	
  17

  
	
  SECTION 5.3.

  	
   

  	
  Exculpatory Provisions

  	
   

  	
  18

  
	
  SECTION 5.4.

  	
   

  	
  Limitations on Duties of the Collateral Agent

  	
   

  	
  18

  
	
  SECTION 5.5.

  	
   

  	
  Resignation and Removal of Collateral Agent

  	
   

  	
  20

  
						

 

 i
 

 

	
  SECTION 5.6.

  	
   

  	
  Qualification of Successors to Collateral Agent

  	
   

  	
  21

  
	
  SECTION 5.7.

  	
   

  	
  Merger of the Collateral Agent

  	
   

  	
  22

  
	
  SECTION 5.8.

  	
   

  	
  Compensation and Expenses

  	
   

  	
  22

  
	
  SECTION 5.9.

  	
   

  	
  Stamp, Other Similar Taxes and Filing Fees

  	
   

  	
  22

  
	
  SECTION 5.10.

  	
   

  	
  Indemnification

  	
   

  	
  22

  
	
  SECTION 5.11.

  	
   

  	
  Waiver of Set-Off by the Collateral Agent

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI 

  	
  MISCELLANEOUS

  	
   

  	
  23

  
	
  SECTION 6.1.

  	
   

  	
  Amendments, Supplements and Waivers

  	
   

  	
  23

  
	
  SECTION 6.2.

  	
   

  	
  Notices

  	
   

  	
  24

  
	
  SECTION 6.3.

  	
   

  	
  Headings

  	
   

  	
  24

  
	
  SECTION 6.4.

  	
   

  	
  Severability

  	
   

  	
  24

  
	
  SECTION 6.5.

  	
   

  	
  Counterparts

  	
   

  	
  24

  
	
  SECTION 6.6.

  	
   

  	
  Binding Effect

  	
   

  	
  24

  
	
  SECTION 6.7.

  	
   

  	
  Governing Law

  	
   

  	
  24

  
	
  SECTION 6.8.

  	
   

  	
  Effectiveness

  	
   

  	
  24

  
	
  SECTION 6.9.

  	
   

  	
  Termination of this Agreement

  	
   

  	
  25

  
	
  SECTION 6.10.

  	
   

  	
  No Bankruptcy Petition Against the Grantors

  	
   

  	
  25

  
	
  SECTION 6.11.

  	
   

  	
  No Waiver; Cumulative Remedies

  	
   

  	
  25

  
	
  SECTION 6.12.

  	
   

  	
  Submission To Jurisdiction; Waivers

  	
   

  	
  25

  
	
  SECTION 6.13.

  	
   

  	
  Waiver of Jury Trial

  	
   

  	
  26

  
	
  SECTION 6.14.

  	
   

  	
  Insurance Notification

  	
   

  	
  26

  
	
  SECTION 6.15.

  	
   

  	
  Waiver of Set-Off With Respect to the Grantors

  	
   

  	
  26

  
	
  SECTION 6.16.

  	
   

  	
  Confidentiality

  	
   

  	
  26

  
	
  SECTION 6.17.

  	
   

  	
  No Recourse

  	
   

  	
  27

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  Servicer’s Fleet Report

  	
   

  	
   

  
	
  Exhibit B

  	
   

  	
  Power of Attorney

  	
   

  	
   

  
								

 

 ii

COLLATERAL AGENCY AGREEMENT

THIS SECOND AMENDED AND RESTATED COLLATERAL AGENCY
AGREEMENT, dated as of January 26, 2007 (as the same may be amended, supplemented, restated or
otherwise modified from time to time in accordance with the terms hereof, this “Agreement”),
among HERTZ VEHICLE FINANCING LLC, a Delaware limited liability company (“HVF”),
and HERTZ GENERAL INTEREST LLC, a Delaware limited liability company (“HGI”),
as grantors (each a “Grantor”), THE HERTZ CORPORATION, a Delaware
corporation (“Hertz”), as Servicer (in such capacity, the “Servicer”),
THE HERTZ CORPORATION, as a secured party (the “HGI Secured Party”), and
BNY MIDWEST TRUST COMPANY, an Illinois trust company (not in its individual
capacity but solely as Trustee on behalf of the Noteholders under the
Indenture), as a secured party (the “HVF Secured Party” and, together
with the HGI Secured Party, the “Secured Parties”) and BNY MIDWEST TRUST
COMPANY, as collateral agent for the Secured Parties (in such capacity, the “Collateral
Agent”).

W I T N E S S E T H:

WHEREAS, HVF, HGI, Hertz, the Trustee and the
Collateral Agent entered into an Amended and Restated Collateral Agency
Agreement dated as of December 21, 2005 (the “Prior Agreement”);

WHEREAS, HVF, HGI, HERTZ, the Trustee and the Collateral
Agent desire to amend and restate the Prior Agreement in its entirety as herein
set forth;

WHEREAS, HVF owns and will from time to time acquire
Vehicles and lease the HVF Vehicles to Hertz for use in Hertz’s daily domestic
rental operations and, in certain circumstances, for use by Hertz’s and Hertz
Equipment Rental Corporation’s employees, in each case pursuant to the HVF
Lease;

WHEREAS, HVF will finance certain of the HVF Vehicles
by issuing Series of Notes pursuant to that certain Second Amended and Restated
Base Indenture dated as of
August 1, 2006 between HVF and BNY Midwest Trust Company, as trustee (as
such Amended and Restated Base Indenture may be amended, supplemented, restated
or otherwise modified from time to time in accordance with its terms, the “Base
Indenture”);

WHEREAS, HGI owns and will from time to time acquire
Vehicles and lease the HGI Vehicles to Hertz for use in Hertz’s daily domestic
rental operations and, in certain circumstances, for use by Hertz’s and Hertz
Equipment Rental Corporation’s employees, in each case pursuant to the HGI
Lease;

WHEREAS, pursuant to the HGI Credit Facility, Hertz
has agreed to make extensions of credit to HGI upon the terms and subject to
the conditions set forth therein in order to finance Vehicles;

WHEREAS, BNY Midwest Trust Company has agreed to act
as Collateral Agent on behalf of the Secured Parties, and in its capacity as
Collateral Agent to be named as lienholder

on the Certificates of Title for the HVF Vehicles
(other than the Initial Hertz Vehicles and the Service Vehicles) and the HGI
Vehicles for the benefit of the Secured Parties;

NOW, THEREFORE, in consideration of the premises and
to induce the Trustee to enter into the Base Indenture and, as a condition
precedent to the issuance of any Series of Notes thereunder, HVF hereby agrees
with the Collateral Agent for the benefit of the HVF Secured Party, and to
induce Hertz to extend credit to HGI under the Hertz Credit Facility, HGI
hereby agrees with the Collateral Agent for the benefit of HGI Secured Party as
follows:

ARTICLE I

CERTAIN DEFINITIONS

SECTION 1.1.  Certain
Definitions.  Unless otherwise
specified herein, capitalized terms used herein (including the preamble and the
recitals hereto) shall have the meanings assigned to such terms (a) in the
Definitions List attached as Schedule I to the Base Indenture as such
Definitions List may be amended or modified from time to time in accordance
with the provisions of the Base Indenture (the “Definitions List”),
except that (i) for purposes of this Agreement only, the term “Related
Documents” shall be deemed to include the HGI Lease and the HGI Credit Facility
and (ii) the term “Vehicles” as used herein and, for purposes of this Agreement
only, as used in the Definitions List shall have the meaning assigned to that
term in the Master Exchange Agreement or (b) in the Master Exchange Agreement.

SECTION 1.2.  Interpretation
and Construction.  Unless the context
of this Agreement otherwise clearly requires, references to the plural include
the singular, to the singular include the plural and to the part include the
whole.  The words “hereof”, “herein”, “hereunder”
and similar terms in this Agreement refer to this Agreement as a whole and not
to any particular provision of this Agreement. 
Unless otherwise stated in this Agreement, in the computation of a
period of time from a specified date to a later specified date, the word “from”
means “from and including” and the words “to” and “until” each means “to but
excluding”.  Sections and other headings
contained in this Agreement are for reference purposes only and shall not
control or affect the construction of this Agreement or the interpretation
hereof in any respect.  Section,
subsection and exhibit references are to this Agreement unless otherwise
specified.  As used in this Agreement,
the masculine, feminine or neuter gender shall each be deemed to include the
others whenever the context so indicates.

ARTICLE II

COLLATERAL AGENT AS LIENHOLDER

FOR THE SECURED PARTIES

SECTION 2.1.  Security
Interest.  (a)  Grant by HVF.  As security for the payment of the Note
Obligations from time to time owing by HVF under the Indenture, HVF hereby
grants, pledges and assigns to the Collateral Agent for the benefit of the HVF
Secured Party a security interest in all right, title and interest of HVF in,
to and under the following, whether now existing or hereafter acquired (the “HVF
Vehicle Collateral”):

 2
 

(i) all HVF
Vehicles and all Certificates of Title with respect thereto;

(ii) all
Manufacturer Programs as they relate to the HVF Vehicles and all monies due and
to become due in respect of the HVF Vehicles from the Manufacturers under or in
connection with the Manufacturer Programs (other than Excluded Payments)
whether payable as vehicle repurchase prices, auction prices, auction sales
proceeds, guaranteed depreciation payments, incentive payments in respect of
sales of Program Vehicles outside of the related Manufacturer Programs, fees,
expenses, costs, indemnities, insurance recoveries, damages for breach of the
Manufacturer Programs or otherwise and all rights to compel performance and
otherwise exercise remedies thereunder;

(iii) the
Assignment Agreements as they relate to the HVF Vehicles, including, without
limitation, all rights, remedies, powers, privileges and claims of HVF against
any other party under or with respect to the Assignment Agreements as they
relate to the HVF Vehicles (whether arising pursuant to the terms of the
Assignment Agreements or otherwise available to HVF at law or in equity), and
the right to enforce any of the Assignment Agreements as they relate to the HVF
Vehicles and to give or withhold any and all consents, requests, notices,
directions, approvals, extensions or waivers under or with respect to the
Assignment Agreements or the obligations of any party thereunder;

(iv) the
Nominee Agreement as it relates to the HVF Vehicles, including, without
limitation, all rights, remedies, powers, privileges and claims of HVF against
any other party under or with respect to the Nominee Agreement as it relates to
the HVF Vehicles (whether arising pursuant to the terms of the Nominee
Agreement or otherwise available to HVF at law or in equity), and the right to
enforce the Nominee Agreement as it relates to the HVF Vehicles and to give or
withhold any and all consents, requests, notices, directions, approvals,
extensions or waivers under or with respect to the Nominee Agreement or the
obligations of any party thereunder;

(v) the Hertz
Nominee Agreement as it relates to the HVF Vehicles, including, without limitation,
all rights, remedies, powers, privileges and claims of HVF against any other
party under or with respect to the Hertz Nominee Agreement as it relates to the
HVF Vehicles (whether arising pursuant to the terms of the Hertz Nominee
Agreement or otherwise available to HVF at law or in equity), and the right to
enforce the Hertz Nominee Agreement as it relates to the HVF Vehicles and to
give or withhold any and all consents, requests, notices, directions,
approvals, extensions or waivers under or with respect to the Hertz Nominee
Agreement or the obligations of any party thereunder;

(vi) the HFC
Nominee Agreement as it relates to the HVF Vehicles, including, without
limitation, all rights, remedies, powers, privileges and claims of HVF against
any other party under or with respect to the Hertz Nominee Agreement as it
relates to the HVF Vehicles (whether arising pursuant to the terms of the HFC
Nominee Agreement or otherwise available to HVF at law or in

 3
 

equity), and
the right to enforce the HFC Nominee Agreement as it relates to the HVF
Vehicles and to give or withhold any and all consents, requests, notices,
directions, approvals, extensions or waivers under or with respect to the HFC
Nominee Agreement or the obligations of any party thereunder;

(vii) all sale
or other proceeds from the disposition of HVF Vehicles, including all monies
due in respect of the HVF Vehicles, whether payable as the purchase price of
such Vehicles, or as related fees, expenses, costs, indemnities, insurance
recoveries, or otherwise;

(viii) all
payments and claims under insurance policies (whether or not the Collateral
Agent or the HVF Secured Party is named as the loss payee thereof) or any
warranty payable by reason of loss or damage to, or otherwise with respect to,
any of the HVF Vehicles;

(ix) the
Collateral Accounts, all monies on deposit from time to time in the Collateral
Accounts constituting proceeds from the disposition of or otherwise arising
from, related to or in respect of HVF Vehicles, and all proceeds thereof;

(x) the Master
Exchange Agreement and the Escrow Agreement as they relate to HVF and all
monies due and to become due to HVF thereunder, whether payable by the
Intermediary to HVF from the accounts maintained pursuant to the Escrow
Agreement or payable as damages for breach of the Master Exchange Agreement,
the Escrow Agreement or otherwise and all rights to compel performance and
otherwise exercise remedies thereunder, including, without limitation, all
rights, remedies, powers, privileges and claims of HVF against any other party
under or with respect to the Master Exchange Agreement and the Escrow Agreement
(whether arising pursuant to the terms of the Master Exchange Agreement or the
Escrow Agreement or otherwise available to HVF at law or in equity), and the
right to enforce the Master Exchange Agreement and the Escrow Agreement and to
give or withhold any and all consents, requests, notices, directions,
approvals, extensions or waivers under or with respect to the Master Exchange
Agreement or the Escrow Agreement or the obligations of  any party thereunder; provided, however, that
in the case of any funds held in the accounts maintained pursuant to the Escrow
Agreement that constitute Relinquished Property Proceeds, such funds shall not
constitute HVF Vehicle Collateral unless such funds are or become Additional
Subsidies; and

(xi) to the
extent not otherwise included, all Proceeds and products of any and all of the
foregoing and all collateral security and guarantees given by any Person with
respect to any of the foregoing.

(b)  Grant
by HGI.  As security for the payment
of the unpaid principal of and interest on all loans made to HGI under the HGI
Credit Facility and all other obligations and liabilities of HGI from time to
time owing by HGI to Hertz thereunder, HGI hereby grants, pledges and assigns
to the Collateral Agent for the benefit of HGI Secured Party, a security
interest in all right, title and interest of HGI in, to and under the
following, whether now existing

 4
 

or hereafter acquired (the “HGI Vehicle Collateral” and together
with the HVF Vehicle Collateral, the “Vehicle Collateral”):

(i) all HGI
Vehicles and all Certificates of Title with respect thereto;

(ii) all
Manufacturer Programs as they relate to the HGI Vehicles and all monies due and
to become due in respect of the HGI Vehicles from the Manufacturers under or in
connection with the Manufacturer Programs (other than Excluded Payments)
whether payable as vehicle repurchase prices, auction prices, auction sales
proceeds, guaranteed depreciation payments, incentive payments in respect of
sales of Program Vehicles outside of the related Manufacturer Programs, fees,
expenses, costs, indemnities, insurance recoveries, damages for breach of the
Manufacturer Programs or otherwise and all rights to compel performance and
otherwise exercise remedies thereunder;

(iii) the
Assignment Agreements as they relate to the HGI Vehicles, including, without
limitation, all rights, remedies, powers, privileges and claims of HGI against
any other party under or with respect to the Assignment Agreements as they
relate to the HGI Vehicles (whether arising pursuant to the terms of the
Assignment Agreements or otherwise available to HGI at law or in equity), and
the right to enforce any of the Assignment Agreements as they relate to the HGI
Vehicles and to give or withhold any and all consents, requests, notices,
directions, approvals, extensions or waivers under or with respect to the
Assignment Agreements or the obligations of any party thereunder;

(iv) the
Nominee Agreement as it relates to the HGI Vehicles, including, without
limitation, all rights, remedies, powers, privileges and claims of HGI against
any other party under or with respect to the Nominee Agreement as it relates to
the HGI Vehicles (whether arising pursuant to the terms of the Nominee
Agreement or otherwise available to HGI at law or in equity), and the right to
enforce the Nominee Agreement as it relates to the HGI Vehicles and to give or
withhold any and all consents, requests, notices, directions, approvals,
extensions or waivers under or with respect to the Nominee Agreement or the
obligations of any party thereunder;

(v) all sale
or other proceeds from the disposition of HGI Vehicles, including all monies
due in respect of the HGI Vehicles, whether payable as the purchase price of
such Vehicles, or as related fees, expenses, costs, indemnities, insurance
recoveries, or otherwise;

(vi) all
payments and claims under insurance policies or any warranty payable by reason
of loss or damage to, or otherwise with respect to, any of the HGI Vehicles;

(vii) the
Collateral Accounts, all monies on deposit from time to time in the Collateral
Accounts constituting proceeds from the disposition of or otherwise arising
from, related to or in respect of HGI Vehicles, and all proceeds thereof;

 5
 

(viii) the
Master Exchange Agreement and the Escrow Agreement as they relate to HGI and
all monies due and to become due to HGI thereunder, whether payable by the
Intermediary to HGI from the accounts maintained pursuant to the Escrow
Agreement or payable as damages for breach of the Master Exchange Agreement,
the Escrow Agreement or otherwise and all rights to compel performance and
otherwise exercise remedies thereunder, including, without limitation, all
rights, remedies, powers, privileges and claims of HGI against any other party
under or with respect to the Master Exchange Agreement and the Escrow Agreement
(whether arising pursuant to the terms of the Master Exchange Agreement or the
Escrow Agreement or otherwise available to HGI at law or in equity), and the
right to enforce the Master Exchange Agreement and the Escrow Agreement and to
give or withhold any and all consents, requests, notices, directions,
approvals, extensions or waivers under or with respect to the Master Exchange
Agreement or the Escrow Agreement or the obligations of  any party thereunder; provided, however, that
in the case of any funds held in the accounts maintained pursuant to the Escrow
Agreement that constitute Relinquished Property Proceeds, such funds shall not
constitute HGI Vehicle Collateral unless such funds are or become Additional
Subsidies; and

(ix) to the
extent not otherwise included, all Proceeds and products of any and all of the
foregoing and all collateral security and guarantees given by any Person with
respect to any of the foregoing.

Each Grantor and each Secured Party hereby authorizes
the Collateral Agent to be named as the first lienholder on the Certificates of
Title for the HVF Vehicles (other than the Initial Hertz Vehicles and the
Service Vehicles) and the HGI Vehicles, in a representative capacity, as
Collateral Agent for the Secured Parties. 
The Collateral Agent agrees that all of its right, title and interest in
and to the Vehicle Collateral shall be solely for the respective benefit of
each Secured Party.  Each Secured Party
hereby directs the Collateral Agent to execute and deliver as of the date set
forth therein in its capacity as Collateral Agent hereunder each Assignment
Agreement hereafter entered into by the Grantors.

(c) 
Notwithstanding the assignment and security interest so granted to the
Collateral Agent on behalf of the Secured Parties pursuant to subsections
(a) and (b) above, each Grantor shall nevertheless be permitted,
subject to the Collateral Agent’s right to revoke such permission with respect
to HVF in the event of an Amortization Event with respect to any Series of
Notes Outstanding and to revoke such permission with respect to HGI in the
event of an Event of Default under the HGI Credit Facility, to give all
consents, requests, notices, directions, approvals, extensions or waivers, if
any, which are required to be given in the normal course of business in
connection with the Vehicles or any Collateral Agreement (which does not
include waivers of default under any of the Collateral Agreements or any of the
Manufacturer Programs).

(d) 
The HVF Secured Party hereby agrees that it shall be entitled to the
benefits of this Agreement only with respect to the HVF Vehicles and the other
HVF Vehicle Collateral.  The HVF Secured
Party hereby acknowledges that it shall have no interest in (i) any HGI
Vehicle, (ii) any funds in a Collateral Account that are proceeds of any HGI
Vehicle, (iii) any rights under any Manufacturer Program with respect to any
HGI Vehicle or (iv) any other

 6
 

portion of the HGI Vehicle Collateral, in each case regardless of the
time, order, manner or nature of attachment or perfection of security interests
in the HVF Vehicles or the HGI Vehicles (including the giving of or failure to
give any purchase money security interest or other notice, or the order of
filing financing statements), or any provision of the UCC, the Bankruptcy Code,
or other applicable law.

(e) 
The HGI Secured Party hereby agrees that it shall be entitled to the
benefits of this Agreement only with respect to the HGI Vehicles and the other
HGI Vehicle Collateral.  The HGI Secured
Party hereby acknowledges that it shall have no interest in (i) any HVF
Vehicle, (ii) any funds in a Collateral Account that are proceeds of any HVF
Vehicle, (iii) any rights under any Manufacturer Program with respect to any
HVF Vehicle or (iv) any other portion of the HVF Vehicle Collateral, in each
case regardless of the time, order, manner or nature of attachment or
perfection of security interests in the HVF Vehicles or the HGI Vehicles
(including the giving of or failure to give any purchase money security
interest or other notice, or the order of filing financing statements), or any
provision of the UCC, the Bankruptcy Code, or other applicable law.

SECTION 2.2.  Designation of
HVF Vehicles and HGI Vehicles.  The
Servicer shall identify on its computer system all Vehicles subject to the HVF
Lease as HVF Vehicles and all Vehicles subject to the HGI Lease as HGI
Vehicles.  The designation of the Vehicles
as HVF Vehicles and HGI Vehicles on the Servicer’s computer system shall be
considered prima facie evidence of the HVF Secured Party’s rights with respect
to the HVF Vehicles and the other HVF Vehicle Collateral and the HGI Secured
Party’s rights with respect to the HGI Vehicles and the other HGI Vehicle
Collateral.  If at any time a Secured
Party reasonably believes that such designation by the Servicer is incorrect,
it may dispute (the “disputing Secured Party”) such designation by
delivering a written notice to each of the Servicer and the Collateral Agent
setting forth its claim as to the correct designation of a HVF Vehicle or HGI
Vehicle, as the case may be (each a “redesignation”).  The Servicer shall, promptly upon receipt of
such notice, distribute a copy thereof to each Grantor and the other Secured
Party (the “non-disputing Secured Party”).  The non-disputing Secured Party shall, within
ten (10) Business Days of receipt of such notice from the Servicer, notify each
of the Servicer and the Collateral Agent in writing as to whether it consents
to the disputing Secured Party’s redesignation. 
If the Servicer and the Collateral Agent receive written notice from the
non-disputing Secured Party consenting to the disputing Secured Party’s
redesignation within the period set forth above, the Servicer shall promptly
effect such redesignation.

SECTION 2.3.  Redesignation of
Vehicles.  From time to time (i) HGI
may sell New HVF Vehicles to HVF pursuant to Section 1.05 of the Purchase
Agreement, (ii) HGI may sell Transferred HGI Vehicles to HVF pursuant to
Section 1.07 of the Purchase Agreement and (iii) HVF may sell Transferred HVF
Vehicles to HGI pursuant to Section 1.07 of the Purchase Agreement.  On the effective date of any such sale, upon
the satisfaction of the conditions to the effectiveness of such sale under the
Purchase Agreement, the Servicer shall redesignate on its computer systems such
New HVF Vehicles as HVF Vehicles, such Transferred HGI Vehicles as HVF Vehicles
or such Transferred HVF Vehicles as HGI Vehicles, as the case may be.  The Servicer shall redesignate each such
Vehicle on its computer systems at the then current Net Book Value of such
Vehicle.  Except as otherwise provided in
Section 2.5(d), (i) the HVF Secured Party hereby acknowledges that it shall
have no interest in any Vehicle or other related

 7
 

Vehicle
Collateral after such Vehicle has been redesignated as a HGI Vehicle in
accordance with the terms of this Section 2.3 and that any such redesignation
shall automatically constitute a release by the HVF Secured Party of any
interest therein and (ii) the HGI Secured Party hereby acknowledges that it
shall have no interest in any Vehicle or other related Vehicle Collateral after
such Vehicle has been redesignated as a HVF Vehicle in accordance with the
terms of this Section 2.3 and that any such redesignation shall automatically
constitute a release by the HGI Secured Party of any interest therein.

SECTION 2.4.  Servicer’s Fleet
Reports.  (a)  On or prior to each Determination Date, the
Servicer shall furnish or cause to be furnished to the Collateral Agent a
report (which may be on diskette or other electronic medium reasonably
acceptable to the Collateral Agent) substantially in the form of Exhibit A
(each such report, a “Fleet Report”), (i) identifying the HVF Vehicles
(and as subsets thereof, each of the Initial Hertz Vehicles and the Service
Vehicles), the HGI Vehicles, the GE Financed Vehicles and the other Vehicles
owned by Hertz separately, as of the last day of the Related Month,
(ii) listing each Vehicle by the VIN with respect to such Vehicle,
(iii) identifying the date of the original purchase of each such Vehicle,
(iv) identifying whether each such Vehicle is a Program Vehicle or a
Non-Program Vehicle, (v) showing, as of the last day of the Related Month,
the Capitalized Cost and the Net Book Value of each such Vehicle,
(vi) identifying the state in which each such Vehicle is titled,
(vii) providing a list of all locations in which the Certificates of Title
for the HVF Vehicles and the HGI Vehicles are held by the Servicer or Servicer’s
Agents as of such date, (viii) providing the name and address of all
Servicer’s Agents as of such date and (ix) providing on a confidential basis
(A) the actual mileage of each Vehicle as of its last check-in, (B) the date of
the last check-in of each Vehicle, (C) if the Vehicle is a Program Vehicle, the
total mileage per the related Manufacturer Program, (D) the Minimum Term
specified in each Manufacturer Program and (E) the Maximum Term specified in
each Manufacturer Program.

(b) 
The Collateral Agent shall make the most recent Fleet Report available
for inspection by any Secured Party at the Corporate Trust Office, during
normal business hours, upon such Secured Party’s prior written request.

(c)  On
each Business Day commencing on the Initial Closing Date, the Servicer shall
prepare and maintain a report identifying the HVF Vehicles, the HGI Vehicles,
the GE Financed Vehicles and the other Vehicles owned by Hertz separately by
the VIN with respect to each such Vehicle as of the close of business on the
immediately preceding Business Day, and shall deliver such report to HGI and
HVF upon their request.

(d) 
For so long as a Liquidation Event of Default or a Limited Liquidation
Event of Default has occurred and is continuing, the Servicer shall furnish or
cause to be furnished to HVF on a weekly basis a report (which may be on
diskette or other electronic medium) that contains the data set forth in a
Fleet Report, but determined on a weekly basis, and HVF shall furnish or cause
to be furnished to each HVF Secured Party such weekly Fleet Report.

SECTION 2.5.  Collateral
Accounts.  (a)  The Collateral Agent shall establish and
maintain for the benefit of the Secured Parties one or more accounts (each a “Collateral
Account”), each in the name of the Collateral Agent or, prior to the date of
termination of the Master Exchange Agreement pursuant to Section 7.01(b)
thereof, the joint name of the Collateral

 8
 

Agent and the
Intermediary, that shall be administered and operated as provided in this
Agreement and the Master Exchange Agreement, bearing a designation clearly
indicating that the funds deposited therein are held for the respective benefit
of each Secured Party as their interests may appear.  Each Collateral Account shall be maintained
(i) with a Qualified Institution or (ii) as a segregated trust
account with a Qualified Trust Institution. 
If any Collateral Account is not maintained in accordance with the
previous sentence, then within ten (10) Business Days of obtaining knowledge of
such fact, the Collateral Agent and the Intermediary shall establish a new
Collateral Account which complies with such sentence and transfer into the new
Collateral Account all funds from the non-qualifying Collateral Account.  Initially, each Collateral Account will be
established with the Collateral Agent. 
Notwithstanding any contrary provision that may be contained in any
Related Document, the provisions contained in this Agreement relating to the
Collateral Accounts and to the flow of funds into and out of the Collateral
Accounts are consented to by the parties hereto (in accordance with Section 6.1
hereof) and shall control.

(b) 
The Servicer and each Grantor shall cause:

(i) all
amounts due from Manufacturers and their related auctions dealers under their
Manufacturer Programs with respect to the Vehicles, other than Excluded
Payments and Permitted Check Payments, to be deposited directly into a
Collateral Account by the Manufacturers and the related auction dealers;
provided, however, that, unless there has been a failure by HGI to make a
payment to HVF on account of an Invoice Adjustment when due in accordance with
Section 1.05(d) of the Purchase Agreement and such failure is continuing,
payments by Manufacturers on account of Invoice Adjustments shall not be
required to be deposited in a Collateral Account;

(ii) all
amounts representing the proceeds from sales of Vehicles to third parties,
other than the Manufacturers or their related auction dealers, and all amounts
received by the Servicer in the form of Permitted Check Payments to be
deposited into a Collateral Account within two Business Days of receipt by the
Servicer;

(iii) all
insurance proceeds and warranty payments in respect of the Vehicles, other than
Excluded Payments, to be deposited into a Collateral Account within two
Business Days of receipt by the Servicer; provided, however, that unless an
Amortization Event with respect to any Series of Notes Outstanding has occurred
and is continuing, insurance proceeds and warranty payments with respect to the
Vehicles shall not be required to be deposited in a Collateral Account;

(iv) all
amounts payable by the Nominee pursuant to Section 11(b) of the Nominee
Agreement to be deposited directly into a Collateral Account by the Nominee;

(v) all
amounts payable by the Hertz Nominee pursuant to Section 10 of the Hertz
Nominee Agreement to be deposited directly into a Collateral Account by the
Hertz Nominee;

 9
 

(vi) all
amounts payable by the HFC Nominee pursuant to Section 10 of the HFC
Nominee Agreement to be deposited directly into a Collateral Account by the HFC
Nominee; and

(vii) all
other Proceeds of the Vehicle Collateral, to be deposited into a Collateral
Account within two Business Days of receipt by the Servicer.

In addition, any Grantor
receiving any Proceeds of the Vehicle Collateral directly shall deposit such
Proceeds into a Collateral Account within two Business Days of receipt.  Notwithstanding the foregoing, if the Servicer
receives any amount pursuant to clause (ii), (iii) or (vii) of this Section 2.5(b)
and determines that such amount is Proceeds of the HVF Collateral, Proceeds of
the HGI Collateral, Proceeds with respect to the GE Financed Vehicles or
Proceeds with respect to the other Vehicles owned by Hertz before it is
obligated to deposit such amount into a Collateral Account in accordance with
this Section 2.5(b), the Servicer shall deposit such amount
directly into the Collection Account or an HVF Exchange Account for application
in accordance with Section 4.02 of the Master Exchange Agreement if it is
Proceeds of the HVF Vehicle Collateral, 
deposit such amount directly into the HGI Account or an HGI Exchange
Account for application in accordance with Section 4.02 of the Master
Exchange Agreement if it is Proceeds of the HGI Collateral, deposit such amount
directly into the GE Collateral Account or a Hertz GE Exchange Account for
application in accordance with Section 4.02 of the Master Exchange Agreement if
it is Proceeds with respect to the GE Financed Vehicles or deposit such amount
directly into an account designated by Hertz or a Hertz Exchange Account other
than a Hertz GE Exchange Account for application in accordance with Section
4.02 of the Master Exchange Agreement if it is Proceeds with respect to the
other Vehicles owned by Hertz.

(c)  The Collateral Agent shall promptly notify
the Servicer when funds are deposited in any Collateral Account.  Promptly after the deposit of any funds into
a Collateral Account, but in no event more than seven Business Days thereafter,
the Servicer shall instruct the Collateral Agent in writing as to (i) the
amount thereof which represents Proceeds of the HVF Vehicle Collateral,
(ii) the amount thereof which represents Proceeds of the HGI Vehicle Collateral,
(iii) the amount thereof which represents Proceeds with respect to the GE
Financed Vehicles and (iv) the amount thereof which represents Proceeds with
respect to the other Vehicles owned by Hertz. 
The Collateral Agent shall pursuant to and promptly after receipt of
instructions from the Servicer, withdraw from the applicable Collateral Account
and deposit in either the Collection Account or, in the case of Relinquished
Property Proceeds, an HVF Exchange Account for application in accordance with
Section 4.02 of the Master Exchange Agreement all amounts representing
Proceeds of the HVF Collateral, withdraw from the applicable Collateral Account
and deposit in either the HGI Account or an HGI Exchange Account for
application in accordance with Section 4.02 of the Master Exchange
Agreement all amounts representing Proceeds of the HGI Collateral, withdraw
from the applicable Collateral Account and deposit in either the GE Collateral
Account or a Hertz GE Exchange Account for application in accordance with
Section 4.02 of the Master Exchange Agreement all amounts representing Proceeds
with respect to the GE Financed Vehicles and withdraw from the applicable
Collateral Account and deposit in either an account designated by Hertz or a
Hertz Exchange Account other than a Hertz GE Exchange Account for application
in accordance with Section 4.02 of the Master Exchange Agreement all amounts
representing Proceeds with respect to other Vehicles owned by Hertz.  Upon receipt by a Responsible Officer of the
Collateral

 10
 

Agent from a Manufacturer of
any information pertaining to payments made by such Manufacturer or an auction
dealer to a Collateral Account in connection with any Manufacturer Program, the
Collateral Agent shall provide such information to the Servicer.

(d)  If at any time the Servicer or any Secured
Party shall receive any funds to which it is not entitled pursuant to the
provisions of this Agreement, the Collateral Agent, the Servicer or such
Secured Party shall so advise the other parties hereto in writing (upon which
written advice the Collateral Agent may conclusively rely) and the Servicer or
such Secured Party, as the case may be, shall forthwith take reasonable steps
to ensure that such funds are remitted to the Person so entitled thereto or as
such Person directs or as otherwise provided in the Related Documents.

(e)  The Servicer may instruct in writing the
Collateral Agent to invest funds on deposit in a Collateral Accounts in
Permitted Investments.  If the Collateral
Agent does not receive instructions from the Servicer prior to 11:00 a.m.,
New York City time, on any day as to the distribution or investment of any
funds on deposit in a Collateral Account then the Collateral Agent shall invest
such funds in Permitted Investments pursuant to an investment letter previously
delivered by the Servicer to the Collateral Agent.  All investments of funds on deposit in any
Collateral Account shall be redeemable or mature on the next Business Day.  The Collateral Agent shall not be responsible
for any losses incurred on any investments made pursuant to this Section 2.5(e).  All investment earnings (net of losses and
investment expenses) shall be payable to the Servicer on each Payment Date.

SECTION
2.6.  Certificates of Title.  (a) 
The Servicer or its designated agents (the “Servicer’s Agents”) on
behalf of the Servicer shall hold all of the Certificates of Title for the HVF
Vehicles and the HGI Vehicles in the Servicer’s capacity as agent of, and
custodian for, the Collateral Agent.  The
Servicer or the Servicer’s Agents on behalf of the Servicer shall (i) hold
all such Certificates of Title, under lock and key, in a safe fireproof
location at one or more of the offices specified in each Fleet Report delivered
by the Servicer pursuant to Section 2.4, and (ii) not release or
surrender any such Certificate of Title other than Certificates of Title as to
which the security interest of the Collateral Agent has been released in
accordance with Section 2.7 of this Agreement; provided, however that the
Servicer or the Servicer’s Agents, on behalf of and at the direction of the
Servicer, may deliver the Certificate of Title for any HVF Vehicle or HGI
Vehicle sold or otherwise disposed of in accordance with the Related Documents
to the purchaser thereof, together with any documentation necessary to effect
the removal of the notation of the Lien of this Agreement on such Certificate
of Title.  The Servicer shall cause the
Certificates of Title with respect to each HVF Vehicle and HGI Vehicle to show
the Nominee (and, with respect to the Initial Hertz Vehicles, Hertz, and with
respect to the Service Vehicles, HFC), as the registered owner of such Vehicle,
and (other than with respect to the Initial Hertz Vehicles and the Service
Vehicles, which shall have no lienholder noted) the Collateral Agent, as agent,
as the first lienholder, at the address of one of the offices of the Servicer
referred to in the preceding sentence. 
For the avoidance of doubt, the Servicer shall not be obligated to retitle
the Initial Hertz Vehicles or the Service Vehicles which are not currently
titled in the name of the Nominee or do not reflect the Collateral Agent, as
agent, as the first lienholder.  The
Servicer shall pay any compensation payable to a Servicer Agent from its own
funds.  Notwithstanding any delegation of
duties to a Servicer Agent hereunder, the Servicer shall not be relieved of its
liability and responsibility with respect to such duties.  The

 11
 

Servicer shall notify the Rating Agencies in
writing at least thirty (30) days prior to the replacement of an existing
Servicer’s Agent or the designation of any new Servicer’s Agent.

(b)  The Collateral Agent hereby grants to the
Servicer a power of attorney to take any and all actions, in the name of the
Collateral Agent, (i) to note the Collateral Agent as the holder of a first
lien on the Certificates of Title for the HVF Vehicles and the HGI Vehicles,
and/or otherwise ensure that the first Lien shown on any and all Certificates
of Title for the HVF Vehicles and the HGI Vehicles is in the name of the
Collateral Agent and (ii) to release the Collateral Agent’s Lien on any
Certificate of Title in connection with the release of the related Vehicle from
the Lien of this Agreement in accordance with Section 2.7.  Nothing in this Agreement shall be construed
as authorization from the Collateral Agent to the Servicer to release any Lien
on the Certificates of Title for the HVF Vehicles and the HGI Vehicles except
upon compliance with this Agreement.  To
further evidence the power of attorney referred to in this Section 2.6(b),
the Collateral Agent agrees that upon request of the Servicer it will execute a
separate power of attorney in respect of the HVF Vehicles or the HGI Vehicles
substantially in the form of Exhibit B.

(c)  After the occurrence and during the
continuance of an Amortization Event with respect to any Series of Notes
Outstanding, the HVF Secured Party may cause the Collateral Agent to terminate
the power of attorney in respect of the HVF Vehicles referred to in Section
2.6(b) (including the related power granted under Section 2.6(b)) by
giving written notice to such effect to the Servicer and the Collateral
Agent.  The HGI Secured Party may cause
the Collateral Agent to terminate the power of attorney in respect of the HGI
Vehicles referred to in Section 2.6(b) (including the related power
granted under Section 2.6(b)) by giving written notice to such effect to
the Servicer and the Collateral Agent. 
The Collateral Agent agrees that upon receipt of any such notice (upon
which notice the Collateral Agent may conclusively rely) it shall promptly
terminate such power of attorney by giving written notice to such effect to the
Servicer.  After any such termination,
the Collateral Agent will follow the written direction of the Servicer to
release liens on HVF Vehicles and HGI Vehicles unless a contrary written
direction is received from a Secured Party.

SECTION
2.7.  Release of Collateral.  (a) 
From and after the earliest of (i) in the case of a Program Vehicle
subject to a Repurchase Program, the Turnback Date for such Program Vehicle,
(ii) in the case of a Program Vehicle subject to a Guaranteed Depreciation
Program, the date of sale of such Program Vehicle by an auction dealer to a
third party, (iii) in the case of a Non-Program Vehicle, the date of the
deposit of the Disposition Proceeds of such Non-Program Vehicle by or on behalf
of HVF into the Collection Account or an HVF Exchange Account, (iv) in the case
of a Transferred HVF Vehicle, the date the related Transfer Payment is
deposited into the Collection Account or an HVF Exchange Account and (v) in the
case of a Casualty, the date the related Casualty Payment is deposited into the
Collection Account, such HVF Vehicle and the related Certificate of Title shall
automatically be released from the Lien of this Agreement.

(b)  From and after the earliest of (i) in the
case of a Program Vehicle subject to a Repurchase Program, the Turnback Date
for such Program Vehicle, (ii) in the case of a Program Vehicle subject to a
Guaranteed Depreciation Program, the date of sale of such Program Vehicle by an
auction dealer to a third party, (iii) in the case of a Non-Program Vehicle,
the date of the

 12
 

deposit of the Disposition
Proceeds of such Non-Program Vehicle by or on behalf of HGI into the HGI
Account or an HGI Exchange Account, (iv) in the case of a Transferred HGI
Vehicle, the date the related Transfer Payment is deposited into the HGI
Account or an HGI Exchange Account, (v) in the case of a Casualty, the date the
related Casualty Payment is deposited into the HGI Account or an HGI Exchange
Account and (vi) in the case of a Rejected Vehicle, the date the related
Rejected Vehicle Payment is deposited into the Collection Account or an HGI
Exchange Account, such HGI Vehicle and the related Certificate of Title shall
automatically be released from the Lien of this Agreement; in addition, HGI may
release any of the HGI Vehicle Collateral and any related Certificate of Title
from the Lien of this Agreement at any time by directing, in writing, the
Servicer and the Collateral Agent to release such HGI Vehicle from such Lien.

(c)  A third party who buys a Vehicle from HVF or
HGI in the ordinary course of business shall take such Vehicle free of any Lien
created pursuant to this Agreement.

(d)  On each Determination Date, the Servicer will
provide the Collateral Agent and each Secured Party with a list of HVF Vehicles
and HGI Vehicles as to which the Lien of the Collateral Agent has been released
during the Related Month.

(e)  In connection with any release permitted under
this Section 2.7, the Collateral Agent and each Secured Party agrees to
execute such further documents, if any, as may be reasonably requested by the
Servicer to effect such release.

ARTICLE III

THE SERVICER

SECTION
3.1.  Acceptance of Appointment.  The Collateral Agent and each Secured Party
hereby appoints Hertz, and Hertz hereby agrees to act, as the initial Servicer
under this Agreement.

SECTION
3.2.  Servicer Functions.  The Servicer shall service and administer the
Vehicles in accordance with the terms of this Agreement and the Leases, and
without limitation of the foregoing, the Servicer shall: (i) cause the
Collateral Agent to be shown as the first lienholder on all Certificates of
Title for the HVF Vehicles and the HGI Vehicles in accordance with Section 2.6,
(ii) designate Vehicles subject to the HVF Lease as HVF Vehicles and Vehicles
subject to the HGI Lease as HGI Vehicles on its computer system in accordance
with Sections 2.2 and 2.3, (iii) collect all amounts due and owing to the
Grantors by the Manufacturers under the Manufacturers Programs in respect of
the HVF Vehicles and the HGI Vehicles and to commence enforcement proceedings
with respect to such Manufacturer Programs, (iv) collect all other amounts due
and owing to the Grantors in respect of such Vehicles and the other Vehicle
Collateral, (v) direct payments due under the Manufacturer Programs with
respect to the HVF Vehicles and the HGI Vehicles to be deposited directly into
a Collateral Account by the Manufacturers and related auction dealers in
accordance with Section 2.5(b), (vi) to deposit all sale proceeds from sales of
HVF Vehicles and HGI Vehicles to third parties (other than under any related
Manufacturer Program) and insurance proceeds and warranty payments in respect
of such Vehicles received directly by the Servicer into a Collateral

 13
 

Account within two Business Days of receipt
by the Servicer in accordance with Section 2.5(b), (vii) turn in the HVF
Vehicles and the HGI Vehicles covered by Manufacturer Programs to the relevant
Manufacturer within the applicable Repurchase Period in accordance with the
Leases and comply with all of its obligations under the Manufacturer Programs,
(viii) furnish the Servicer’s Fleet Report as provided in Section 2.4, (ix)
instruct the Collateral Agent in writing to make distributions, withdrawals and
payments from the Collateral Accounts in accordance with Section 2.5, (x)
perform the duties specified in Section 8.20 of the Master Exchange
Agreement and Section 6.21 of the Escrow Agreement and (xi) otherwise
administer and service the HVF Vehicles and the HGI Vehicles in accordance with
the Related Documents.  The Servicer
shall have full power and authority, acting alone or through any party properly
designated by it hereunder to do any and all things in connection with its
servicing and administration duties which it may deem necessary or desirable to
accomplish such servicing and administration duties and which does not
materially adversely affect the interests of any Secured Party unless otherwise
prohibited by the Related Documents.

SECTION
3.3.  The Servicer Not to Resign.  Without the prior written consent of the
Collateral Agent and each of the Secured Parties, the Servicer shall not resign
from the obligations and duties imposed on it hereunder.

SECTION
3.4.  Servicing Rights of Collateral
Agent.  (a)   If the Servicer shall fail to perform any of
its obligations hereunder, which failure adversely affects one or more of the
Secured Parties, the Collateral Agent, at the direction and at the expense of
the Secured Party so adversely affected thereby, shall take such action or
cause such action to be taken, to perform such obligations as shall be so
directed by such Secured Party, whereupon the Collateral Agent shall have full
right and authority to take or cause to be taken such action so directed.

(b)  In the event that the Collateral Agent is
directed to take any action with respect to the HVF Vehicles or the HGI
Vehicles or perform any obligation of the Servicer pursuant to Section 3.4
of this Agreement, the Servicer shall fully cooperate with the Collateral Agent
in any manner requested by the Collateral Agent or the applicable Secured Party
in order to assist the Collateral Agent in taking any such action or performing
any such duty.

SECTION 3.5.  Incumbency Certificate.  With the delivery of this Agreement and from
time to time thereafter, each of the Grantors and the Servicer shall furnish to
the Collateral Agent a certificate (each, an “Incumbency Certificate”)
certifying as to the incumbency and specimen signatures of each of their
respective Authorized Officers.  Until
the Collateral Agent receives a subsequent Incumbency Certificate, the
Collateral Agent shall be entitled to rely on the last such Incumbency
Certificate delivered to it for purposes of determining the Authorized
Officers.

SECTION
3.6.  Effective Period and
Termination.  The Servicer’s
appointment hereunder shall become effective on the date hereof and shall
continue in full force and effect until terminated pursuant to this Section 3.6
or until this Agreement shall be terminated. 
If all of the rights and obligations of Hertz as Servicer under the HVF
Lease shall have been terminated under Section 17 of the HVF Lease, the
appointment of Hertz as Servicer in respect of the HVF Vehicles hereunder may
be terminated by the HVF Secured Party in the same manner as the HVF Secured
Party may terminate the rights and obligations of the Servicer under

 14
 

Section 17 of the HVF Lease.  As soon as practicable after any termination
of such appointment, the Servicer shall, at its expense, deliver all documents
and records relating to the HVF Vehicle Collateral, including, without
limitation, the most recent Fleet Report, to the HVF Secured Party or the HVF
Secured Party’s agent at such place or places as the HVF Secured Party may
reasonably designate.

ARTICLE IV

REPRESENTATIONS, WARRANTIES AND COVENANTS

SECTION
4.1.  Representations and Warranties
of the Grantors.  Each Grantor
represents and warrants to the Collateral Agent and each Secured Party as
follows as of the Restatement Effective Date and each Series Closing Date:

(a)  The execution, delivery and performance by
such Grantor of this Agreement (i) is within such Grantor’s limited liability
company powers and has been duly authorized by all necessary limited liability
company action, (ii) requires no action by or in respect of, or filing with,
any Governmental Authority which has not been obtained and (iii) does not
contravene, or constitute a default under, any Requirements of Law with respect
to such Grantor or any Contractual Obligation with respect to such Grantor or
result in the creation or imposition of any Lien on any property of such
Grantor, except for Liens created by this Agreement.  This Agreement has been executed and
delivered by a duly authorized officer of such Grantor.

(b)  No consent, action by or in respect of,
approval or other authorization of, or registration, declaration or filing
with, any Governmental Authority or other Person is required for the valid
execution and delivery by such Grantor of this Agreement or for the performance
of any of such Grantor’s obligations hereunder other than such consents,
approvals, authorizations, registrations, declarations or filings as shall have
been obtained by HVF prior to the Restatement Effective Date.

(c)  This Agreement is a legal, valid and binding
obligation of such Grantor enforceable against such Grantor in accordance with
its terms (except as such enforceability may be limited by bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and other similar
laws affecting creditors’ rights generally or by general equitable principles,
whether considered in a proceeding at law or in equity and by an implied
covenant of good faith and fair dealing).

(d)  Each Grantor owns and has good and marketable
title to the Vehicle Collateral in which such Grantor has an interest, free and
clear of all Liens other than Permitted Liens. 
This Agreement constitutes a valid and continuing Lien on such Vehicle
Collateral in favor of the Collateral Agent on behalf of the related Secured
Party, which Lien on such Vehicle Collateral has been perfected (other than
with respect to the Initial Hertz Vehicles and the Service Vehicles) and is
prior to all other Liens (other than Permitted Liens) and is enforceable as
such as against creditors of and purchasers from such Grantor in accordance
with its terms, except as such enforceability may be limited by bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and other similar
laws affecting creditors’ rights generally or by

 15
 

general equitable principles,
whether considered in a proceeding at law or in equity and by an implied
covenant of good faith and fair dealing.

(e)  Other than the security interest granted to
the Collateral Agent hereunder, neither Grantor has pledged, assigned, sold or
granted a security interest in the Vehicle Collateral.  All action necessary to protect and perfect
the Collateral Agent’s security interest in the Vehicle Collateral (other than
with respect to the Initial Hertz Vehicles and the Service Vehicles) in which
such Grantor has an interest has been duly and effectively taken.  No security agreement, financing statement,
equivalent security or lien instrument or continuation statement listing such
Grantor as debtor covering all or any part of such Vehicle Collateral is on
file or of record in any jurisdiction, except such as may have been filed,
recorded or made by such Grantor in favor of the Collateral Agent in connection
with this Agreement or the Trustee in connection with the Indenture, and
neither Grantor has authorized any such filing.

(f)  Its legal name is on the signature pages
hereto and its location within the meaning of Section 9-307 of the applicable
UCC is the State of Delaware.  It will
not change its name or the jurisdiction of its organization without 60 days
prior written notice to the Collateral Agent.

SECTION
4.2.  Representations and Warranties
of the Servicer.  The Servicer
represents and warrants to the Collateral Agent and each Secured Party as
follows as of the Restatement Effective Date and each Series Closing Date:

(a)  This Agreement has been duly authorized,
executed and delivered on behalf of the Servicer and, assuming due
authorization, execution and delivery by the other parties hereto, is a valid
and legally binding obligation of the Servicer, enforceable against the
Servicer in accordance with its terms (except as such enforceability may be
limited by bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar laws affecting creditors’ rights generally or by
general equitable principles, whether considered in a proceeding at law or in
equity and by an implied covenant of good faith and fair dealing).

(b)  The execution, delivery and performance by
the Servicer of this Agreement will not conflict with or result in a breach of
any of the terms or provisions of, or constitute a default under, or result in
the creation or imposition of any Lien, charge or encumbrance upon any of the
property or assets of the Servicer pursuant to the terms of any indenture,
mortgage, deed of trust, loan agreement, guarantee, lease financing agreement
or other similar agreement or instrument under which the Servicer is a debtor
or guarantor (except to the extent that such conflict, breach, creation or
imposition is not reasonably likely to result in a Material Adverse Effect) nor
will such action result in a violation of any provision of applicable law or
regulation (except to the extent that such violation is not reasonably likely
to result in a Material Adverse Effect) or of the provisions of the Certificate
of Incorporation or the By-Laws of the Servicer.

(c)  There is no consent, approval, authorization,
order, registration or qualification of or with any Governmental Authority
having jurisdiction over the Servicer which is required for the execution,
delivery and performance of this Agreement (except to the extent that the
failure to obtain such consent, approval, authorization, order, registration or
qualification is not reasonably likely to result in a Material Adverse Effect).

 16

SECTION 4.3.  Covenants of
Grantors.  Each Grantor hereby agrees
that:

(a)  It
shall take all action necessary to maintain and to perfect the Collateral Agent’s
security interest on behalf of the related Secured Party in the Vehicle
Collateral (other than with respect to the Initial Hertz Vehicles and the
Service Vehicles) in which it has an interest now in existence and hereafter
acquired or created, including, without limitation, the filing of any financing
or continuation statements under the UCC in effect in any jurisdiction with
respect to the liens and security interests granted hereunder.

(b)  At
any time and from time to time, upon the written request of the Collateral
Agent, and at its sole expense, it will promptly and duly execute and deliver
any and all such further instruments and documents and take such further action
as the Collateral Agent may reasonably deem desirable in obtaining the full
benefits of this Collateral Agreement and of the rights and powers herein
granted, including, without limitation, the filing of any financing or
continuation statements under the UCC in effect in any jurisdiction with
respect to the liens and security interests granted hereby.  It also hereby authorizes the Collateral Agent
to file any such financing or continuation statement, at its expense.  If any amount payable under or in connection
with any of the Vehicle Collateral shall be or become evidenced by any
promissory note, chattel paper or other instrument, such note, chattel paper or
instrument shall be deemed to be held in trust and promptly pledged to the
Collateral Agent hereunder, and shall, subject to the rights of any Person in
whose favor a prior Lien has been perfected, be duly endorsed in a manner
satisfactory to the Collateral Agent and delivered to the Collateral Agent
promptly.

(c)  It
shall warrant and defend the Collateral Agent’s right, title and interest in
and to the Vehicle Collateral in which it has an interest and the Proceeds
thereof, for the benefit of the related Secured Party against the claims and
demands of all Persons whomsoever.

ARTICLE V

THE COLLATERAL AGENT

SECTION 5.1.  Appointment.  (a) 
Each Secured Party, by its execution of this Agreement, appoints the
Collateral Agent as its agent under and for purposes of this Agreement.  Each Secured Party authorizes the Collateral
Agent to act on behalf of such Secured Party under this Agreement and, in the
absence of other written instructions from a Secured Party with respect to the
portion of the Vehicle Collateral securing such Secured Party (its “Related
Vehicle Collateral”) as may be received from time to time by the Collateral
Agent (with respect to which the Collateral Agent agrees that it will comply)
to exercise such powers hereunder as are specifically delegated to or required
of the Collateral Agent by the terms hereof and to exercise such powers as are
provided to each Secured Party with respect to its Related Vehicle Collateral
under the Related Documents and with such powers as may be reasonably
incidental thereto.  The Collateral Agent
is hereby irrevocably appointed the true and lawful attorney-in-fact of each of
the Secured Parties, in its name and stead, for such purposes as are necessary
or desirable to effectuate the provisions of this Agreement, including, without
limitation, in exercising remedies upon or otherwise dealing with the Vehicle
Collateral.  Each such power of attorney
is irrevocable and coupled with an interest.

 17
 

(b)  If
either Secured Party represents in writing to the Collateral Agent that it has
the right to act with respect to its Related Vehicle Collateral pursuant to the
Related Documents, the Collateral Agent may conclusively rely upon such
representation and shall exercise any and all rights, remedies, powers and
privileges available to such Secured Party with respect to its Related Vehicle
Collateral to the extent and in the manner directed by such Secured Party, at
the expense of the related Grantor and subject to the other provisions of this
Agreement (including without limitation Section 5.4(g)), as permitted
under the Related Documents, including, without limitation, the transmission of
notices of default, repossession of Vehicles, and the institution of legal or
administrative actions or proceedings. 
Each of the Grantors and the Secured Parties agrees that the Collateral
Agent may exercise such rights, remedies, powers and privileges in lieu of a
Secured Party in accordance with the preceding sentence.

(c)  At
any time after the occurrence and during the continuance of an Amortization
Event with respect to any Series of Notes Outstanding, if the Collateral Agent
shall default in its obligation to exercise the rights, remedies, powers or
privileges of the HVF Secured Party with respect to the HVF Vehicle Collateral
in accordance with the direction of the HVF Secured Party (including any rights
under Section 3.4 or 5.1(b)), the Collateral Agent shall, upon
the written request of the HVF Secured Party, assign to the HVF Secured Party
the Collateral Agent’s security interest in the HVF Vehicle Collateral and
shall, at the Collateral Agent’s expense, execute those instruments and
documents necessary to effectuate such assignment (including, if necessary, the
execution of any documents necessary to effect the change of the first
lienholder on Certificates of Title for the HVF Vehicles to the HVF Secured
Party or its agent or assignee).

SECTION 5.2.  Representations.  The Collateral Agent hereby represents and
warrants that (i) it is an Illinois trust company, duly organized, validly
existing and in good standing under the laws of the State of Illinois and it
has all requisite power and authority to enter into and perform its obligations
under this Agreement and (ii) the execution, delivery and performance by it of
this Agreement have been duly authorized by all necessary corporate action on
its part, and this Agreement is the legal, valid and binding obligation of the
Collateral Agent, enforceable against it in accordance with its terms, except
as such enforcement may be limited by applicable bankruptcy, insolvency,
moratorium or similar laws affecting creditors’ rights generally and by the
application of equitable principles.

SECTION 5.3.  Exculpatory
Provisions.  The Collateral Agent
makes no representations as to the value or condition of the Vehicle Collateral
or any part thereof, as to the status or designation of any Vehicle as a HVF
Vehicle or a HGI Vehicle pursuant to Section 2.2, as to the title of either of
the Grantors thereto, as to the protection afforded by this Agreement, as to
any statements, representations or warranties made by any Person (other than
itself) in or in connection with this Agreement or any Related Document, as to
the validity, execution (except its own execution), enforceability (except
enforceability against itself), priority, perfection, legality or sufficiency
of this Agreement or any Related Document or any documents or instruments
referred to therein, or the sufficiency or effectiveness or perfection or
priority of any Lien on any collateral described in this Agreement, or as to
the validity or collectibility of any obligation contemplated by this
Agreement, and the Collateral Agent shall incur no liability or responsibility
in respect of any such matters.  The
Collateral Agent shall not be responsible for insuring the Vehicle Collateral
or for the payment of taxes, charges, assessments or Liens upon

 18
 

the Vehicle
Collateral or for filing any financing or continuation statements or recording
any documents or instruments in any public office at any time or otherwise
perfecting or maintaining the perfection of its security interest in the
Vehicle Collateral purported to be granted hereby or otherwise as to the
maintenance of the Vehicle Collateral.

SECTION 5.4.  Limitations on
Duties of the Collateral Agent. 
(a)  The Collateral Agent
undertakes to perform only the duties expressly set forth herein and no implied
duties shall be read into this Agreement. 
Nothing herein shall be deemed to constitute the Collateral Agent a
trustee or fiduciary for any Secured Party.

(b) 
The Collateral Agent may exercise the rights and powers granted to it by
this Agreement, together with such powers as are reasonably incidental thereto,
but only pursuant to the terms of this Agreement.

(c) 
The Collateral Agent’s duty of care shall be solely to deal with the
Vehicle Collateral as it would deal with property of its own, the Collateral
Agent shall not be liable for any error of judgment made in good faith by an
officer thereof, or for any action taken or omitted to be taken by it in
accordance with this Agreement, except to the extent caused by the gross
negligence or willful misconduct of the Collateral Agent.

(d) 
The Collateral Agent shall have no authority to grant, convey or assign
the Certificates of Title or change the notation of a security interest thereon
or deal with the Certificates of Title in any way except as expressly provided
herein.

(e) 
The Collateral Agent shall have no liability or responsibility for (i)
any release of Vehicle Collateral by the Servicer pursuant to Sections 2.7
or (ii) any act of the Servicer taken in its own name or the name of the
Collateral Agent.

(f) 
The Collateral Agent shall have no duty to calculate, compute or verify,
and shall not be held in any manner responsible for the content of the Servicer’s
Fleet Report, except to verify that the certificate filed therewith conforms to
the form of Exhibit A.

(g) 
Except as required by the specific terms of this Agreement, the
Collateral Agent shall not be required to exercise any discretion and shall
have no duty to exercise or to refrain from exercising any right, power, remedy
or privilege granted to it hereby, or to take any affirmative action or refrain
from taking any affirmative action hereunder, including with respect to the
identification of funds referred to herein or the application thereof, unless
directed to do so by the Secured Party specified herein as being entitled to
direct the Collateral Agent hereunder or, as provided herein, the Servicer (and
shall be fully protected in acting or refraining from acting pursuant to or in
accordance with such directions, which shall be binding on each of the Secured
Parties).  Notwithstanding anything
herein to the contrary, the Collateral Agent shall not be required to take any
action (a) that in its reasonable opinion is or may be contrary to law or to
the terms of this Agreement, any Related Document or any other agreement or
instrument relating to the Vehicle Collateral, or (b) which might or would in
its reasonable opinion subject it or any of its directors, officers, employees
or agents to personal or financial liability unless it is indemnified hereunder
to its satisfaction (and if any indemnity should become, in the reasonable

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determination of the Collateral Agent, inadequate, the Collateral Agent
may call for additional indemnity and cease to act until such additional
indemnity is given).

(h) 
The Collateral Agent may, in its sole discretion, retain counsel,
independent accountants and other experts selected by it and may act in
reliance upon the advice of such counsel, independent accountants and other
experts concerning all matters pertaining to the agencies hereby created and
its duties hereunder, and shall be held harmless and shall not be liable for
any action taken or omitted to be taken by it in good faith in reliance upon or
in accordance with the statements and advice of such counsel (or counsel to
Hertz or either of the Grantors), accountants and other experts.

(i)  In
the event that the Collateral Agent receives conflicting instructions delivered
in accordance with this Agreement, the Collateral Agent shall have the right to
seek instructions concerning its duties and actions under this Agreement from
any court of competent jurisdiction.  If
the Collateral Agent receives unclear or conflicting instructions, it shall be
entitled to refrain from taking action until clear or non-conflicting
instructions are received, but shall inform the instructing party or parties
promptly of its decision to refrain from taking such action.  Without limiting the foregoing, in the event
that the Collateral Agent receives unclear or conflicting instructions from the
Secured Parties hereunder or there is any other disagreement between the other
parties hereto resulting in adverse claims and demands being made in connection
with the Vehicle Collateral, or in the event that the Collateral Agent in good
faith is in doubt as to what action it should take hereunder, the Collateral
Agent shall be entitled to retain the Vehicle Collateral until the Collateral
Agent shall have received (i) a final order of a court of competent
jurisdiction directing delivery of the Vehicle Collateral or (ii) a written
agreement executed by the other parties hereto directing delivery of the
Vehicle Collateral in which event the Collateral Agent shall disburse the
Vehicle Collateral in accordance with such order or agreement.  Upon request of the Collateral Agent, any
such court order shall be accompanied by a legal opinion by counsel for the
presenting party satisfactory to the Collateral Agent to the effect that such
order is final.

(j) 
The Collateral Agent shall not have any duty to ascertain or to inquire
as to the performance or observance of any of the terms, covenants or
conditions of this Agreement, any Related Document or any other agreements or
instruments relating to the Vehicle Collateral on the part of any party hereto
or thereto or to inspect any books and records relating to the Vehicle
Collateral other than as it determines necessary in the fulfillment of its own
obligations hereunder.

(k) 
The Collateral Agent shall be entitled to rely on any communication,
certificate, instrument, opinion, report, notice, paper or other document
reasonably believed by it to be genuine and correct and to have been signed,
given or sent by the proper Person or Persons. 
The Collateral Agent shall be entitled to assume that no Amortization
Event, Limited Liquidation Event of Default or Liquidation Event of Default
shall have occurred and be continuing and that a Collateral Account, and any
funds on deposit in or to the credit of a Collateral Account, are not subject
to any writ, order, judgment, warrant of attachment, execution or similar
process (collectively, a “writ”), unless (i) in the case of any writ,
the Collateral Agent has actual knowledge thereof or (ii) the Collateral Agent
has received written notice from the Servicer, any of the Grantors or a Secured
Party that an Amortization Event, Limited Liquidation Event of

 20
 

Default or Liquidation Event of Default has occurred or such writ has
been issued and, in each case, continues to be in effect, which notice
specifies the nature thereof.

(l) 
The Collateral Agent, in its individual capacity, may accept deposits
from, lend money to and generally engage in any kind of business with the
Servicer, either of the Grantors, any Manufacturer and their respective
Affiliates as if it were not the agent of the Secured Parties.

(m) 
The Collateral Agent may act through agents, custodians and nominees and
shall not be liable for any negligent act on the part of, or for the supervision
of, any such agent, custodian or nominee so long as such agent, custodian or
nominee is appointed with due care.  The
appointment of agents, custodians and nominees (other than legal counsel)
pursuant to this subsection (m) shall be subject to the prior written
consent of each of the Grantors and the Secured Parties, which consent shall
not be unreasonably withheld, and shall be conditioned on the satisfaction of
the Rating Agency Condition with respect to each Series of Notes Outstanding
with respect to such appointment.  The
possession of the Vehicle Collateral by such agents, custodians or nominees
shall be deemed to be the possession by the Collateral Agent.  No provision of this Agreement shall require
the Collateral Agent to expend or risk its own funds or otherwise incur any
financial or other liability in the performance of any duties hereunder or in
the exercise of any rights and powers hereunder unless the Collateral Agent is
provided with an indemnity from one or more of the Secured Parties or other
Persons, satisfactory to the Collateral Agent in its sole discretion.

SECTION 5.5.  Resignation and
Removal of Collateral Agent. 
(a)  The Collateral Agent may, at
any time with or without cause by giving forty-five (45) days’ prior written notice
to the Servicer, each of the Grantors and the Secured Parties, resign and be
discharged of its responsibilities hereunder created, such resignation to
become effective upon the appointment by the Secured Parties of a successor
Collateral Agent, and the acceptance of such appointment by such successor
Collateral Agent.  The Servicer shall,
promptly upon receipt thereof, provide a copy of the notice from the Collateral
Agent referred to in the preceding sentence to each Rating Agency.  The Collateral Agent may be removed by the
Servicer at any time (with or without cause) upon thirty (30) days’ prior
written notice by the Servicer to the Collateral Agent, the Grantors, the
Secured Parties and each of the Rating Agencies, and the appointment by each of
the Secured Parties of a successor Collateral Agent; provided, however, that if
the Servicer is in default (beyond all applicable grace and cure periods) under
this Agreement or an Amortization Event with respect to any Series of Notes
Outstanding has occurred and is continuing, the right of the Servicer to remove
the Collateral Agent shall cease and the HVF Secured Party shall have the right
to remove the Collateral Agent (with or without cause) upon thirty (30) days’
written notice to the Servicer, the Grantors, the HGI Secured Party, the
Collateral Agent and each of the Rating Agencies; provided, further, that no
removal of the Collateral Agent shall be effective until the appointment of a
successor Collateral Agent and acceptance of such appointment by such
Collateral Agent.  Any removed Collateral
Agent shall be entitled to its reasonable fees and expenses to the date the
successor Collateral Agent assumes the Collateral Agent’s duties
hereunder.  The indemnification of
Section 5.10 shall survive the termination of the other provisions of this
Agreement as to the predecessor Collateral Agent.  If no successor Collateral Agent shall be
appointed and approved within thirty (30) days from the date of the giving of
the aforesaid notice of resignation or within

 21
 

thirty (30)
days from the date of such notice of removal, the Collateral Agent or any
Secured Party may petition a court of competent jurisdiction to appoint a
successor Collateral Agent to act until such time, if any, as a successor
Collateral Agent shall be appointed as above provided.  Any successor Collateral Agent so appointed
by such court shall immediately upon its acceptance of such appointment without
further act supersede any predecessor Collateral Agent.  Upon the appointment of a successor Collateral
Agent hereunder and its acceptance of such appointment, the predecessor
Collateral Agent shall be discharged of and from any and all further
obligations arising in connection with this Agreement.

(b) 
The appointment, designation and acceptance referred to in Section
5.5(a) shall, after any required filing, be full evidence of the right and
authority to make the same and of all the facts therein recited, and this
Agreement shall vest in such successor Collateral Agent, without any further
act, deed or conveyance, all of the estate and title of its predecessors and
upon such filing for record the successor Collateral Agent shall become fully
vested with all the estates, properties, rights, powers, duties, authority and
title of its predecessors; but any predecessor Collateral Agent shall
nevertheless, on the written request of any Secured Party, the Servicer, any
Grantor or any successor Collateral Agent empowered to act as such at the time
any such request is made, execute and deliver an instrument without recourse or
representation transferring to such successor all the estates, properties,
rights, powers, duties, authority and title of such predecessor hereunder and
shall deliver all securities and moneys held by it to such successor Collateral
Agent.  Upon the appointment of a
successor Collateral Agent hereunder, the predecessor Collateral Agent shall be
discharged of and from any and all further obligations arising in connection
with this Agreement; provided, however, that the predecessor
Collateral Agent will serve as nominee lienholder for the successor Collateral
Agent with respect to those Vehicles on whose Certificate of Title the
predecessor Collateral Agent had been named as lienholder prior to its
resignation or removal pursuant to this Section 5.5.

SECTION 5.6.  Qualification of
Successors to Collateral Agent. 
Every successor to the Collateral Agent appointed pursuant to Section
5.5 (i) shall be a bank or trust company in good standing and having power so
to act and incorporated under the laws of the United States or any State
thereof or the District of Columbia, (ii) shall have capital, surplus and
undivided profits of not less than $50,000,000, and (iii) shall have a
long-term deposits rating of not less than “BBB-” by Standard & Poor’s and “Baa3”
by Moody’s and, unless otherwise agreed to by Fitch, “BBB-”by Fitch, if there
be such an institution with such capital, surplus and undivided profits and
ratings willing, qualified and able to accept the trust upon reasonable or
customary terms.  The appointment of any
successor Collateral Agent pursuant to Section 5.5 shall be subject to the
satisfaction of the Rating Agency Condition with respect to each Series of
Notes Outstanding.

SECTION 5.7.  Merger of the
Collateral Agent.  Any corporation
into which the Collateral Agent may be merged, or with which it may be
converted or consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Collateral Agent shall be a party
shall be the Collateral Agent under this Agreement without the execution or
filing of any paper or any further act on the part of the parties hereto.  The Collateral Agent shall give the Rating
Agencies, the Servicer, each of the Grantors and the Secured Parties prior
written notice of any such merger, conversion or consolidation.

 22
 

SECTION 5.8.  Compensation and
Expenses.  The Servicer shall pay to
the Collateral Agent, from time to time (i) compensation for its services
hereunder for administering the Vehicle Collateral as the Collateral Agent and
the Servicer shall from time to time agree in writing, and (ii) all reasonable
out-of-pocket costs and expenses of the Collateral Agent (including reasonable
fees and expenses of counsel) (A) arising in connection with the preparation,
execution, delivery, or modification of this Agreement and/or the enforcement
of any of the provisions hereof or (B) incurred in connection with the
administration of the Vehicle Collateral, the sale or other disposition of the
Vehicle Collateral pursuant to any Related Document and/or the preservation,
protection or defense of the Collateral Agent’s rights under this Agreement and
in and to the Vehicle Collateral.

SECTION 5.9.  Stamp, Other
Similar Taxes and Filing Fees.  The
Servicer shall indemnify and hold harmless the Collateral Agent from any
present or future claim for liability for any stamp or other similar tax and
any penalties or interest with respect thereto, that may be assessed, levied or
collected by any jurisdiction in connection with this Agreement or any Vehicle
Collateral.  The Servicer shall pay, or
reimburse the Collateral Agent for, any and all amounts in respect of, all
search, filing, recording and registration fees, taxes, excise taxes and other
similar imposts payable in respect of the execution, delivery, performance
and/or enforcement of this Agreement.

SECTION 5.10.  Indemnification.  Each Grantor shall pay, and indemnify and
hold the Collateral Agent and each of the officers, employees, directors and
agents thereof harmless from and against, any and all liabilities (including
liabilities for penalties and liabilities arising or resulting from actions or
suits), obligations, losses, judgments, demands, damages, claims, costs or
expenses of any kind or nature whatsoever that may at any time be imposed on,
incurred by, or asserted against, the Collateral Agent or any such officers,
employees, directors or agents in any way relating to or arising out of the
Related Vehicle Collateral and the execution, delivery, amendment, enforcement,
performance and/or administration of this Agreement (and any agreements related
thereto including, without limitation, the Assignment Agreements), including
reasonable fees and expenses of counsel and other experts, and each Grantor
shall reimburse its related Secured Party for any payments made by such Secured
Party to the Collateral Agent or any such officers, employees, directors or
agents for any of the foregoing provided that such payments were permitted to
be made by such Secured Party under the Related Documents; provided, however,
that no Grantor shall be liable for the payment of any portion of such
liabilities (including liabilities for penalties and liabilities arising or
resulting from actions or suits), obligations, losses, judgments, demands,
damages, claims, costs or expenses of the Collateral Agent or any such
officers, employees, directors or agents which are determined by a court of
competent jurisdiction in a final proceeding to have resulted from the gross
negligence or willful misconduct of the Collateral Agent or any such agent.

Each of the Secured Parties agrees to indemnify and
hold the Collateral Agent and each of its officers, employees, directors and
agents harmless to the same extent as its related Grantor in accordance with
the foregoing paragraph but only to the extent that the Collateral Agent has
not been paid by such Grantor pursuant to such paragraph; provided that
the HVF Secured Party’s obligation to indemnify the Collateral Agent hereunder
shall be limited to funds constituting Monthly Servicing Fees and Monthly
Administration Fees under the Base Indenture and the related Series
Supplements.

 23
 

SECTION 5.11.  Waiver of
Set-Off by the Collateral Agent.  The
Collateral Agent hereby expresssly waives any and all rights of setoff,
abatement, diminution or deduction that it may otherwise at any time have under
applicable law with respect to the Vehicle Collateral, provided, however, that
this waiver shall apply only to obligations owed to the Collateral Agent in its
individual capacity and not as an agent for the Secured Parties, and agrees
that all Vehicle Collateral shall at all times be held and applied in
accordance with the provisions hereof.

ARTICLE VI

MISCELLANEOUS

SECTION 6.1.  Amendments,
Supplements and Waivers.  This
Agreement may be amended, waived, terminated, supplemented or otherwise
modified pursuant to a writing executed by the Collateral Agent, each Secured
Party, each Grantor and the Servicer; provided, however, that an amendment may
be executed without the consent of a Secured Party if such amendment is
effected only to cure any ambiguity, to correct or supplement any provision
herein which may be inconsistent with any other provision herein or which is
otherwise defective, to make any other provisions with respect to matters or questions
arising under this Agreement which shall not be inconsistent with the
provisions of this Agreement or any other applicable Related Document and which
shall not adversely affect the interests of a Secured Party in any material
respect (as evidenced by an Officer’s Certificate of the Servicer) or to amend,
waive, terminate, supplement or otherwise modify this Agreement in a manner
that only affects HGI or the HGI Vehicle Collateral.  The initial effectiveness of any amendment or
other modification to this Agreement shall be subject to the satisfaction of
the Rating Agency Condition with respect to each Series of Notes
Outstanding.  Notwithstanding anything to
the contrary contained herein, this Agreement may be amended, supplemented or
otherwise modified pursuant to a writing executed by the Collateral Agent, each
Grantor and the Servicer without the consent of any Secured Party, but subject
to any consents specified in a Series Supplement, in order to permit HVF to
provide financing in the form of one or more rated and/or unrated asset backed
securities and/or one or more credit facilities to PR Borrower for the purpose
of acquiring vehicles for its car rental fleet in Puerto Rico or to make
payments in reduction of the principal amount of other indebtedness of PR
Borrower or for any other purpose which is permitted in the consents, if any,
obtained pursuant to the Series Supplements but subject to the satisfaction of
the Rating Agency Condition with respect to each Series of Notes Outstanding.

SECTION 6.2.  Notices.  All notices, amendments, waivers, consents
and other communications provided to any party hereto under this Agreement
shall be in writing and addressed, delivered or transmitted to such party at
its address or facsimile number set forth on the signature pages hereof or at
such other address or facsimile number as may be designated by such party in a
notice to the other parties.  Any notice,
if mailed by certified or registered mail and properly addressed with postage
prepaid or if properly addressed and sent by pre-paid courier service, shall be
deemed given when received; any notice, if transmitted by facsimile, shall be
deemed given when transmitted upon receipt of electronic confirmation of such,
and shall be addressed at the address specified for such party on the signature
pages hereto.

 24
 

SECTION 6.3.  Headings.  Section, subsection and other headings used
in this Agreement are for convenience only and shall not affect the
construction of this Agreement.

SECTION 6.4.  Severability.  Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall not invalidate the
remaining provisions hereof, and any such prohibition or unenforceability in
any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction.

SECTION 6.5.  Counterparts.  This Agreement may be executed in separate
counterparts and by the different parties on different counterparts, each of
which shall be an original and all of which taken together shall constitute one
and the same instrument. Delivery of an executed signature page of this
Agreement by facsimile transmission shall be effective as delivery of a
manually executed counterpart hereof.

SECTION 6.6.  Binding Effect.  This Agreement shall be binding upon and inure
to the benefit of each of the parties hereto and their respective successors
and assigns.  The parties hereto may not
assign either this Agreement or any of their respective rights, interests or
obligations hereunder.  Nothing herein is
intended or shall be construed to give any other Person any right, remedy or
claim under, to or in respect of this Agreement or the Vehicle Collateral.

SECTION 6.7.  Governing Law.  THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT
SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW
OF THE STATE OF NEW YORK.

SECTION 6.8.  Effectiveness.  This Agreement shall become effective on the
execution and delivery hereof and shall remain in effect until no Secured Party
shall have any claim on the Vehicle Collateral.

SECTION 6.9.  Termination of
this Agreement.  At any time that no
amounts are then owing to the Secured Parties under the Related Documents and
the Related Documents shall have been terminated, the Servicer may terminate
this Agreement upon notice to the Collateral Agent and the Secured Parties, and
the Collateral Agent shall take all actions reasonably requested by the
Servicer, at the Servicer’s expense, to evidence the termination of this
Agreement and the Collateral Agent’s interest in the Vehicle Collateral,
including, without limitation, execute such documents and instruments as the
Servicer may reasonably request in connection with such reassignment; provided,
however, that Sections 5.3, 5.4(a), (c), and (e) through (k), 5.8, and the
indemnification set forth in Sections 5.9 and 5.10 shall survive the
termination of this Agreement.

SECTION 6.10.  No Bankruptcy
Petition Against the Grantors.  Each
of the Collateral Agent and the Servicer hereby covenants and agrees that,
prior to the date which is one year and one day after the payment in full of
the latest maturing Note, it will not institute against, or join with any other
Person in instituting against, either Grantor, Hertz Vehicles LLC or the
Intermediary, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other similar proceedings under any Federal or
state bankruptcy or similar law;

 25
 

provided,
however, that nothing in this Section 6.10 shall constitute a waiver of any
right to indemnification, reimbursement or other payment from any Grantor or
Secured Party pursuant to this Agreement. 
The provisions of this Section 6.10 shall survive the termination of
this Agreement, and the resignation or removal of the Collateral Agent.

SECTION 6.11.  No Waiver;
Cumulative Remedies.  No failure to
exercise and no delay in exercising, on the part of the Collateral Agent or any
Secured Party, any right, remedy, power or privilege hereunder shall operate as
a waiver thereof; nor shall any single or partial exercise of any right,
remedy, power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges
herein provided are cumulative and not exclusive of any rights, remedies,
powers and privileges provided by law.

SECTION 6.12.  Submission To
Jurisdiction; Waivers.  Each Grantor
and the Servicer hereby irrevocably and unconditionally:

(a) 
submits for itself and its property in any legal action or proceeding
relating to this Agreement or for recognition and enforcement of any judgment
in respect thereof, to the non-exclusive general jurisdiction of the courts of
the State of New York, the courts of the United States for the Southern
District of New York, and appellate courts from any thereof;

(b) 
consents that any such action or proceeding may be brought in such
courts and waives any objection that it may now or hereafter have to the venue
of any such action or proceeding in any such court or that such action or
proceeding was brought in an inconvenient court and agrees not to plead or
claim the same;

(c) 
agrees that service of process in any such action or proceeding may be
effected by mailing a copy thereof by registered or certified mail (or any
substantially similar form of mail), postage prepaid, to such Grantor or the
Servicer, as the case may be, at its address set forth in Section 6.2 or
at such other address of which the Collateral Agent shall have been notified pursuant
thereto;

(d) 
agrees that nothing herein shall affect the right to effect service of
process in any other manner permitted by law or shall limit the right to sue in
any other jurisdiction; and

(e) 
waives, to the maximum extent not prohibited by law, any right it may
have to claim or recover in any legal action or proceeding referred to in this
Section any special, exemplary, punitive or consequential damages.

SECTION 6.13.  Waiver of Jury
Trial.  THE COLLATERAL AGENT, EACH GRANTOR, EACH SECURED PARTY AND THE SERVICER
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION
OR PROCEEDING RELATING TO THIS AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN.

SECTION 6.14.  Insurance
Notification.  The Collateral Agent
shall, promptly upon its receipt of notification of any termination of or
proposed cancellation or nonrenewal of

 26
 

any insurance
policies required to be maintained under any of the Related Documents, notify
the related Secured Party of any such termination, proposed cancellation or
nonrenewal.

SECTION 6.15.  Waiver of
Set-Off With Respect to the Grantors. 
Each of the Secured Parties hereby waives and relinquishes any right
that it has or may have to set-off or to exercise any banker’s lien or any
right of attachment or garnishment with respect to any funds at any time and
from time to time on deposit in, or otherwise to the credit of, any account and
any claims of the Grantors therein or with respect to any right to payment from
the Grantors, it being understood, however, that nothing contained in this
Section 6.15 shall, or is intended to, derogate from the assignment and
security interest granted to any Secured Party under the Related Documents or
the Collateral Agent under this Agreement or impair any rights of the Secured
Parties or the Collateral Agent hereunder or thereunder.

SECTION 6.16.  Confidentiality.  Each party hereto (other than Hertz and the
Grantors) agrees that it shall not disclose any Confidential Information to any
Person without the prior written consent of Hertz or the applicable Grantor, as
the case may be, other than (a) to any Secured Party, and then only on a
confidential basis, (b) as required by any law, rule or regulation or any
judicial process of which Hertz or the applicable Grantor, as the case may be,
has knowledge; provided that any party hereto may disclose Confidential
Information as required by law, rule or regulation or any judicial process of
which Hertz or the applicable Grantor, as the case may be, does not have
knowledge if such party is prohibited by law from disclosing such requirement
to Hertz or the applicable Grantor, as the case may be, and (c) in the course
of litigation with Hertz, any of the Grantors, as the case may be, or any
Secured Party.

“Confidential Information” means information that
Hertz or any of the Grantors, as applicable, furnishes to a Secured Party on a
confidential basis, but does not include any such information that is or
becomes generally available to the public other than as a result of a
disclosure by such Secured Party or other Person to which such Secured Party
delivered such information or that is or becomes available to such Secured
Party from a source other than Hertz or any of the Grantors, as the case may
be, provided that such source is not (1) known to such Secured Party to be
bound by a confidentiality agreement with Hertz or any of the Grantors, as the
case may be, or (2) known to such Secured Party to be otherwise prohibited from
transmitting the information by a contractual, legal or fiduciary obligation.

SECTION 6.17.  No Recourse.  The obligations of each Grantor under this
Agreement are solely the obligations of such Grantor.  No recourse shall be had for the payment of
any amount owing in respect of any fee hereunder or any other obligation or
claim arising out of or based upon this Agreement against any member, employee,
officer or director of either Grantor. 
Fees, expenses or costs payable by either Grantor hereunder shall be
payable by such Grantor to the extent and only to the extent that such Grantor
is reimbursed therefor pursuant to any of the Related Documents.  In the event that a Grantor is not reimbursed
for such fees, expenses or costs, the excess unpaid amount of such fees,
expenses or costs shall in no event constitute a claim (as defined in Section
101 of the Bankruptcy Code) against, or corporate obligation of, such Grantor.
Nothing in this Section 6.17 shall be construed to limit the Collateral Agent
from exercising its rights hereunder with respect to the Collateral.

 27
 

IN WITNESS WHEREOF, each party hereto has executed
this Agreement or caused this Agreement to be duly executed by its officer
thereunto duly authorized as of the day and year first above written.

	
  

  	
   

  	
  HERTZ VEHICLE FINANCING LLC,

  
	
   

  	
   

  	
  as Grantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Elyse
  Douglas

  
	
   

  	
   

  	
   

  	
  Name: Elyse
  Douglas

  
	
   

  	
   

  	
   

  	
  Title: Vice
  President & Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
  225 Brae Boulevard

  
	
   

  	
   

  	
  Park Ridge, NJ 07656

  
	
   

  	
  Attention:

  	
  Treasury Department

  
	
   

  	
  Telephone:

  	
  (201) 307-2000

  
	
   

  	
  Facsimile:

  	
  (201) 307-2746

  
					

 

	
  

  	
   

  	
  HERTZ GENERAL
  INTEREST LLC,

  
	
   

  	
   

  	
  as Grantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Elyse
  Douglas

  
	
   

  	
   

  	
   

  	
  Name: Elyse
  Douglas

  
	
   

  	
   

  	
   

  	
  Title: Vice
  President & Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
  225 Brae Boulevard

  
	
   

  	
   

  	
  Park Ridge, NJ 07656

  
	
   

  	
  Attention:

  	
  Treasury Department

  
	
   

  	
  Telephone:

  	
  (201) 307-2000

  
	
   

  	
  Facsimile:

  	
  (201) 307-2746

  
					

 

 28
 

 

	
  

  	
   

  	
  THE HERTZ
  CORPORATION,

  
	
   

  	
   

  	
  as Servicer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Elyse
  Douglas

  
	
   

  	
   

  	
   

  	
  Name: Elyse
  Douglas

  
	
   

  	
   

  	
   

  	
  Title: Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
  225 Brae Boulevard

  
	
   

  	
   

  	
  Park Ridge, NJ 07656

  
	
   

  	
  Attention:

  	
  Treasury Department

  
	
   

  	
  Telephone:

  	
  (201) 307-2000

  
	
   

  	
  Facsimile:

  	
  (201) 307-2746

  
					

 

	
  

  	
   

  	
  BNY MIDWEST
  TRUST COMPANY,

  
	
   

  	
   

  	
  as Secured
  Party, not in its individual

  
	
   

  	
   

  	
  capacity but solely as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Marian
  Onischak

  
	
   

  	
   

  	
   

  	
  Name: Marian Onischak

  
	
   

  	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
  2 North LaSalle Street, Suite 1020

  
	
   

  	
   

  	
  Chicago, IL 
  60602

  
	
   

  	
  Attention:

  	
  Corporate Trust Administration —

  
	
   

  	
   

  	
  Structured
  Finance

  
	
   

  	
  Telephone:

  	
  (312) 827-8569

  
	
   

  	
  Facsimile:

  	
  (312) 827-8562

  
					

 

	
  

  	
   

  	
  THE HERTZ
  CORPORATION,

  
	
   

  	
   

  	
  as Secured Party

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Elyse
  Douglas

  
	
   

  	
   

  	
   

  	
  Name: Elyse Douglas

  
	
   

  	
   

  	
   

  	
  Title: Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
  225 Brae Boulevard

  
	
   

  	
   

  	
  Park Ridge, NJ 07656

  
	
   

  	
  Attention:

  	
  Treasury Department

  
	
   

  	
  Telephone:

  	
  (201) 307-2000

  
	
   

  	
  Facsimile:

  	
  (201) 307-2746

  
					

 

 29
 

 

	
  

  	
   

  	
  BNY MIDWEST
  TRUST COMPANY,

  
	
   

  	
   

  	
  not in its
  individual capacity but

  
	
   

  	
   

  	
  solely as Collateral Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Marian
  Onischak

  
	
   

  	
   

  	
   

  	
  Name: Marian Onischak

  
	
   

  	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
  2 North LaSalle Street, Suite 1020

  
	
   

  	
   

  	
  Chicago, IL 
  60602

  
	
   

  	
  Attention:

  	
  Corporate Trust Administration —

  
	
   

  	
   

  	
  Structured
  Finance

  
	
   

  	
  Telephone:

  	
  (312) 827-8569

  
	
   

  	
  Facsimile:

  	
  (312) 827-8562

  
					

 

 30

EXHIBIT A

SERVICER’S FLEET REPORT

Pursuant to Sections 2.4 and 2.6 of the
Second Amended and Restated Collateral Agency Agreement dated as of January 26,
2007, among HERTZ VEHICLE FINANCING LLC, as a grantor, HERTZ GENERAL INTEREST
LLC, as a grantor, THE HERTZ CORPORATION, as Servicer, THE HERTZ CORPORATION,
as a Secured Party, BNY MIDWEST TRUST COMPANY, as trustee, as a Secured Party
and BNY MIDWEST TRUST COMPANY, as Collateral Agent (as the same may be amended,
supplemented, restated or otherwise modified from time to time in accordance
with the terms thereof, the “Collateral Agency Agreement”), the Servicer
hereby certifies that attached hereto is a (1) report which shows for each of
the HVF Vehicles (and as subsets thereof, each of the Initial Hertz Vehicles
and the Service Vehicles), the HGI Vehicles, the GE Financed Vehicles and the
other Vehicles owned by Hertz as of [the last day of] [the fifteenth day of]           
20   : (a) the VINs with respect to each such Vehicle, (b) the
date of the original purchase of such Vehicle, (c) whether such Vehicle is a
Program Vehicle or a Non-Program Vehicle, (d) the Capitalized Cost and Net Book
Value for each such Vehicle, and (e) the state in which each such Vehicle is
titled and (2) a list of all locations in which the Certificates of Title for
the HVF Vehicles and the HGI Vehicles are held by the Servicer or Servicer’s
Agents as of the last day of such month and the name and address of all
Servicer’s Agents as of the last day of such month.  Capitalized terms used herein but not defined
herein shall have the meanings assigned to such terms in the Collateral Agency
Agreement.

Duly certified and executed, this     
day of                         ,
20     .

	
  

  	
  THE HERTZ
  CORPORATION,

  
	
   

  	
  as Servicer

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 A-1

EXHIBIT B

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that BNY MIDWEST TRUST
COMPANY, as Collateral Agent (the “Collateral Agent”) under that certain
Second Amended and Restated Collateral Agency Agreement, dated as of January
26, 2007, among HERTZ VEHICLE FINANCING LLC, as a grantor, HERTZ GENERAL
INTEREST LLC, as a grantor, THE HERTZ CORPORATION, as Servicer, THE HERTZ
CORPORATION, as a Secured Party, BNY MIDWEST TRUST COMPANY, as trustee as a
Secured Party, and the Collateral Agent, (as amended, supplemented, restated or
otherwise modified from time to time in accordance with the terms thereof, the “Collateral
Agency Agreement”) does hereby make, constitute and appoint THE HERTZ
CORPORATION, as Servicer) and/or HERTZ VEHICLES LLC its true and lawful
Attorney(s)-in-Fact for it and in its name, stead and behalf to execute any and
all documents and instruments (i) to note the Collateral Agent as the holder of
a first Lien on the Certificate of Title, and/or otherwise ensure that the
first Lien shown on any and all Certificates of Title is in the name of the
Collateral Agent, (ii) to release the Collateral Agent’s Lien on any
Certificate of Title, in connection with the sale or disposition of any Vehicle
permitted pursuant to the provisions of Section 2.7 of the Collateral
Agency Agreement and (iii) to appoint individual representatives of THE HERTZ
CORPORATION and/or HERTZ VEHICLES LLC as attorneys-in-fact to fulfill the
purposes of this Power of Attorney. 
Capitalized terms used herein and not otherwise defined herein shall
have the meanings ascribed to such terms in the Collateral Agency Agreement.

GIVING AND GRANTING unto said attorney(s) full power
and authority to do and perform each and every act and thing whatsoever,
requisite, necessary or proper to be done in furtherance of the foregoing.

The powers and authority granted hereunder shall,
unless sooner revoked by the Collateral Agent in accordance with Section 2.6
of the Collateral Agency Agreement or following the resignation or removal of
the Collateral Agent under the Collateral Agency Agreement, cease upon the
termination of the Collateral Agency Agreement.

IN WITNESS WHEREOF, the undersigned has caused this
instrument to be executed on its behalf on this             
day of                 ,
20    .

	
  

  	
  BNY MIDWEST TRUST COMPANY,

  
	
   

  	
  not in its
  individual capacity

  
	
   

  	
  but solely as
  Collateral Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 B-1
 

 

	
  STATE OF NEW YORK

  	
  )

  	
   

  
	
   

  	
  :

  	
    ss.:

  
	
  COUNTY OF NEW
  YORK

  	
  )

  	
   

  

 

Subscribed and sworn
before me, a notary public, in and for said county and state, this       
day of                    ,
20     .

Notary Public

My Commission
Expires:

 B-2EXHIBIT
4.9.13

 

AMENDED AND RESTATED MASTER EXCHANGE AGREEMENT

dated as of January 26, 2007

among

THE HERTZ CORPORATION,

HERTZ VEHICLE FINANCING LLC,

HERTZ GENERAL INTEREST LLC,

HERTZ CAR EXCHANGE INC.

and

J.P. MORGAN PROPERTY HOLDINGS LLC

 

Table of Contents

	
  

  	
   

  	
  Page

  
	
   

  
	
  ARTICLE I

  
	
   

  
	
  Definitions

  
	
   

  
	
  SECTION 1.01.

  	
  Definitions

  	
   

  	
  2

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  
	
   

  
	
  General Exchange
  Provisions

  
	
   

  
	
  SECTION 2.01.

  	
  Exchange of Property

  	
   

  	
  8

  
	
  SECTION 2.02.

  	
  Disposition and Transfer of Relinquished Property

  	
   

  	
  9

  
	
  SECTION 2.03.

  	
  Acquisition and Transfer of Replacement Property

  	
   

  	
  10

  
	
  SECTION 2.04.

  	
  Assignment of Agreements

  	
   

  	
  10

  
	
  SECTION 2.05.

  	
  Notice to Purchasers and Sellers

  	
   

  	
  11

  
	
  SECTION 2.06.

  	
  Direct Transfers

  	
   

  	
  11

  
	
  SECTION 2.07.

  	
  Matching of Relinquished and Replacement Property

  	
   

  	
  11

  
	
  SECTION 2.08.

  	
  Disclosure of Relationship

  	
   

  	
  12

  
	
  SECTION 2.09.

  	
  Exclusivity

  	
   

  	
  12

  
	
  SECTION 2.10.

  	
  Records

  	
   

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
   

  	
   

  	
   

  
	
  Identification

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  Identification of Replacement Property

  	
   

  	
  12

  
	
  SECTION 3.02.

  	
  Revocation of Identification

  	
   

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  
	
   

  	
   

  	
   

  
	
  Accounts

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
  Accounts

  	
   

  	
  13

  
	
  SECTION 4.02.

  	
  Separation and
  Application of Funds in Joint Collection Accounts and Exchange Accounts;
  Proceeds from Transfer of Relinquished Property by the QI

  	
   

  	
  15

  
	
  SECTION 4.03.

  	
  Payment for Replacement Property

  	
   

  	
  17

  
	
  SECTION 4.04.

  	
  Investment of Funds in the Exchange Account

  	
   

  	
  18

  
	
  SECTION 4.05.

  	
  Disbursements from Account

  	
   

  	
  18

  
	
  SECTION 4.06.

  	
  Disbursement Occurrence

  	
   

  	
  18

  

 

 i

	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  
	
   

  	
   

  	
   

  
	
  Indemnity By
  Each Legal Entity

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01. No Personal Liability

  	
   

  	
  19

  
	
  SECTION 5.02. Indemnity

  	
   

  	
  19

  
	
  SECTION 5.03. Survival

  	
   

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  
	
   

  	
   

  	
   

  
	
  Representations,
  Warranties And Covenants

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01. Representations and Warranties of the
  QI

  	
   

  	
  20

  
	
  SECTION 6.02. Representations and Warranties of
  Owner

  	
   

  	
  21

  
	
  SECTION 6.03. Representations and Warranties of Each
  Legal Entity

  	
   

  	
  22

  
	
  SECTION 6.04. Survival of Representations and
  Warranties

  	
   

  	
  23

  
	
  SECTION 6.05. Maintenance of Separate Existence

  	
   

  	
  23

  
	
  SECTION 6.06. Ownership by Owner; Mergers

  	
   

  	
  24

  
	
  SECTION 6.07. Organizational Documents

  	
   

  	
  25

  
	
  SECTION 6.08. No Other Agreements

  	
   

  	
  25

  
	
  SECTION 6.09. Other Business

  	
   

  	
  25

  
	
  SECTION 6.10. QI Parent Downgrade Event Sale

  	
   

  	
  25

  
	
  SECTION 6.11. Trademark License

  	
   

  	
  26

  
	
  SECTION 6.12. Confidentiality

  	
   

  	
  27

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  
	
   

  	
   

  	
   

  
	
  Term And
  Compensation; Escrow Agreement Termination

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01. Term

  	
   

  	
  27

  
	
  SECTION 7.02. Compensation

  	
   

  	
  29

  
	
  SECTION 7.03. Escrow Agreement Termination

  	
   

  	
  29

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  
	
   

  	
   

  	
   

  
	
  Miscellaneous

  
	
   

  	
   

  	
   

  
	
  SECTION 8.01. Pending Litigation

  	
   

  	
  29

  
	
  SECTION 8.02. Notices

  	
   

  	
  29

  
	
  SECTION 8.03. Amendments

  	
   

  	
  31

  
	
  SECTION 8.04. Successors and Assigns; No Third-Party
  Beneficiaries

  	
   

  	
  31

  
	
  SECTION 8.05. Governing Law, Venue, Jury Trial
  Waiver, and Attorneys’ Fees

  	
   

  	
  31

  
	
  SECTION 8.06. Indebtedness

  	
   

  	
  32

  
	
  SECTION 8.07. Strict Performance

  	
   

  	
  32

  
	
  SECTION 8.08. Severability; Interpretation

  	
   

  	
  32

  
	
  SECTION 8.09. Dates, Descriptions, Values, and
  Matching

  	
   

  	
  32

  

 

 

	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 8.10. Counterparts

  	
   

  	
  32

  
	
  SECTION 8.11. Entire Agreement

  	
   

  	
  33

  
	
  SECTION 8.12. Electronic Signature

  	
   

  	
  33

  
	
  SECTION 8.13. Acknowledgment of Independent
  Relationship

  	
   

  	
  33

  
	
  SECTION 8.14. Headings

  	
   

  	
  33

  
	
  SECTION 8.15. Force Majeure

  	
   

  	
  33

  
	
  SECTION 8.16. Consequential Damages

  	
   

  	
  33

  
	
  SECTION 8.17. Investment Losses

  	
   

  	
  34

  
	
  SECTION 8.18. Treasury Regulations Disclosure
  Requirements

  	
   

  	
  34

  
	
  SECTION 8.19. No Petitions

  	
   

  	
  34

  
	
  SECTION 8.20. Servicer

  	
   

  	
  34

  

 

This AMENDED AND RESTATED MASTER EXCHANGE AGREEMENT (this “Agreement”)
is entered into as of January 26, 2007, by and among, HERTZ CAR EXCHANGE INC.,
a Delaware corporation (the “QI”), J.P. MORGAN PROPERTY HOLDINGS LLC, a
Delaware limited liability company (“Property Holdings”), THE HERTZ
CORPORATION, a Delaware corporation (“Hertz”), HERTZ VEHICLE FINANCING
LLC, a Delaware limited liability company (“HVF”) and HERTZ GENERAL
INTEREST LLC, a Delaware limited liability company (“HGI”).

W I T N E S S E T H :

WHEREAS, the QI, Property Holdings, Hertz, HVF and HGI
entered into a Master Exchange Agreement dated as of December 21, 2005 (the “Prior
Agreement”);

WHEREAS, the QI, Property Holdings, Hertz, HVF and HGI
desire to amend and restate the Prior Agreement in its entirety as set forth
herein;

WHEREAS, HVF and HGI are single member limited
liability companies, solely owned by Hertz, and therefore disregarded entities
for purposes of the Code and the Treasury Regulations;

WHEREAS, each action taken by a Legal Entity in its
individual capacity pursuant to this Agreement shall, for purposes of the Code
and the Treasury Regulations, have been taken by Exchangor;

WHEREAS, Exchangor desires to exchange certain
Vehicles that are held for productive use in its trade or business and that
constitute Relinquished Property for other vehicles to be held for productive
use in its trade or business that are like-kind to the Relinquished Property;

WHEREAS, the Relinquished Property will be sold to
various buyers (each a “Buyer”) from time to time, including
Manufacturers and purchasers at auctions;

WHEREAS, the Replacement Property will be purchased
from time to time from various Manufacturers and vehicle dealers (each a “Seller”);

WHEREAS, it is the intention of the parties that each
Exchange of Relinquished Property for Replacement Property, and the
transactions related thereto, be effectuated pursuant to the terms of this
Agreement;

WHEREAS, Exchangor and the QI desire and intend that
the Exchanges accomplished by Exchangor and the QI under this Agreement (the “LKE
Program”) satisfy the requirements of a “like kind exchange program”
pursuant to Section 3.02 of Revenue Procedure 2003-39;

WHEREAS, Exchangor desires to effectuate each Exchange
in a manner that will qualify as a like-kind exchange within the meaning of
Section 1031 of the Internal Revenue Code of 1986, as amended (the “Code”)
and the treasury regulations (the “Treasury Regulations”) promulgated
thereunder (and any applicable corresponding provisions of state tax legislation)
pursuant to one or more of the “safe harbors” described in
Section 1.1031(k)-1(g) of the Treasury Regulations, and Revenue
Procedure 2003-39;

WHEREAS, the QI is willing to act as a “qualified
intermediary” within the meaning of Section 1031 of the Code and
Section 1.1031(k)-1(g)(4) of the Treasury Regulations (such entity, a “Qualified
Intermediary”) in order to facilitate Exchanges of Relinquished Property
for Replacement Property;

WHEREAS, it is the intention of the parties to
maintain Joint Collection Accounts, Exchange Accounts and Joint Disbursement
Accounts so that for purposes of the Treasury Regulations Exchangor is not
determined to be in actual or constructive receipt of proceeds (including any
earnings thereon) from the disposition of any Relinquished Property;

WHEREAS, Exchangor and the QI desire and intend this
Agreement to satisfy the requirement of a written agreement referred to in
Section 1.1031(k)-1(g)(4)(iii)(B) of the Treasury Regulations with respect
to the applicable Relinquished Property and the applicable Replacement
Property; and

WHEREAS, each Legal Entity will continue to comply
with its obligations under the Related Documents to which it is a party;

NOW, THEREFORE,  in
consideration of the mutual covenants, conditions and agreements set forth
herein, each Legal Entity and the QI hereby agree as follows:

ARTICLE I

Definitions

SECTION 1.01.  Definitions.  Capitalized terms used herein and not
otherwise defined herein shall have the meaning set forth in Schedule I to the
Base Indenture.  The following terms used
in this Agreement shall have the following meanings, unless otherwise expressly
provided herein:

“Accounts” shall mean any Exchange Account, any
Joint Collection Account or any Joint Disbursement Account, as the context requires.

“Accession Agreement” shall have the meaning
set forth in Section 6.10(d).

“Additional Subsidies” shall mean funds (other
than funds that currently constitute Relinquished Property Proceeds) that
Exchangor may use for the acquisition of Replacement Property and to make
Non-LKE Disbursements, which include:

(i) funds on
deposit in any Account that were Relinquished Property Proceeds but have not
been identified to Replacement Property within the Identification Period
or

 2
 

with respect to which any identification has
been revoked or the Exchange Period has expired without acquisition of
Replacement Property;

(ii) funds on
deposit in any Account that were Relinquished Property Proceeds but are no
longer Relinquished Property Proceeds because Exchangor has received all of the
Replacement Property that was identified with respect to the related
Relinquished Property Proceeds during the Identification Period for the related
Exchange pursuant to Section 3.01 hereof;

(iii) funds on
deposit in any Account that never were Relinquished Property Proceeds,
including, among other amounts, Non-Qualified Funds, additional amounts
transferred to a Joint Disbursement Account by a Legal Entity pursuant to
Section 4.03(e) and any earnings on deposit in any Account that are not
Qualified Earnings; and/or

(iv) funds
that may be withdrawn pursuant to Section 4.06.

“Agreement” shall have the meaning set forth in
the preamble hereto.

“Automated Clearing House” shall mean a
facility that processes debit and credit transactions under rules established
by a Federal Reserve Bank operating circular on automated clearing house items
or under rules of an automated clearing house association.

“Base Indenture” shall mean the Second Amended
and Restated Base Indenture, dated as of August 1, 2006, between HVF and BNY
Midwest Trust Company, as trustee, as amended, modified or supplemented from
time to time.

“Business Day” shall mean any day except a
Saturday, Sunday or legal holiday on which the offices of the Trustee, any
Legal Entity, the QI or, with respect to any matter involving any Account, the
Escrow Agent (or any successor thereto) are not open for business.

“Buyer” shall have the meaning set forth in the
recitals hereto.

“Collateral Agency Agreement” means the Second
Amended and Restated Collateral Agency Agreement, dated as of the date hereof,
among HVF, HGI, Hertz and the Trustee, as amended, modified or supplemented
from time to time.

“Disbursement Occurrence” shall have the
meaning set forth in Section 4.06 hereof.

“Disqualified Person” shall have the meaning
set forth in Section 6.01(k) hereof.

“Downgrade Sale” shall have the meaning set
forth in Section 6.10(a) hereof.

“Electronic Funds Transfer” shall mean any
funds transfer initiated by an electronic instruction, including, without
limitation, any funds transfer via the Automated Clearing House system, any
wire transfer via the Federal Reserve System and any funds transfer recorded on
the books and records of the banking institution maintaining the relevant
accounts.

 3
 

“Escrow Accounts” shall mean the “Escrow
Accounts” under and as defined in the Escrow Agreement.

“Escrow Agent” shall mean the “Escrow Agent”
under and as defined in the Escrow Agreement.

“Escrow Agreement” shall mean that agreement by
and among the Escrow Agent, each Legal Entity and the QI, dated as of the date
hereof, pursuant to which one or more Exchange Accounts and Joint Disbursement
Accounts shall be maintained as escrow accounts on behalf of the Legal Entities
and any replacement of such agreement.

“Event of Default” shall have the meaning set
forth in the GE Credit Agreement.

“Exchange” shall mean Exchangor’s transfer of
Relinquished Property and Exchangor’s corresponding receipt of Replacement
Property within the relevant Exchange Period with which the Relinquished
Property has been matched by Exchangor that are of like-kind, as defined in
Sections 1.1031(a)-1(b) and 1.1031(a)-2 of the Treasury Regulations.

“Exchange Account” shall mean any account
established by the QI pursuant to the Escrow Agreement and (a) in the case of
any HVF Exchange Account, maintained by the Trustee, in the joint name of the
QI and the Trustee pursuant to Section 5A.1 of the Base Indenture or (b) in the
case of any Hertz GE Exchange Account, maintained by the GE Collateral Agent in
the joint name of the QI and the GE Collateral Agent pursuant to the provisions
of the GE Credit Agreement and the GE Collateral Agreement, that (1) is used to
receive Relinquished Property Proceeds and any Additional Subsidies from a
Joint Collection Account, and (2) is used to provide such funds to another
Exchange Account or a Joint Disbursement Account (to the extent of the funds in
such Exchange Account pursuant to the Escrow Agreement).

“Exchange Period” shall mean, with respect to
the Relinquished Property transferred in an Exchange, as defined in
Section 1.1031(k)-1(b)(2) of the Treasury Regulations, the period
beginning on the date such Relinquished Property is transferred to the QI and
ending at 11:59 p.m. (New York City time) on the earlier of (a) the one
hundred eightieth (180th) calendar day thereafter (irrespective of whether such
day is a weekend day or a holiday) or (b) the due date (including
extensions) for Exchangor’s U.S. federal income tax return for the year in
which the transfer of the Relinquished Property takes place.

“Exchangor” shall mean Hertz, HVF and HGI,
collectively, which are treated as a single taxpayer for purposes of the Code
and the Treasury Regulations.

“GE Collateral Account” shall have the meaning
assigned to the term “Collateral Account” in the GE Collateral Agreement.

“GE Collateral Agent” shall have the meaning
assigned to the term “Domestic Collateral Agent” in the GE Credit Agreement.

“GE Collateral Agreement” shall mean the
Domestic Guarantee and Collateral Agreement, dated as of September 29, 2006,
made by Hertz and certain of its subsidiaries in favor of Gelco Corporation dba
GE Fleet Services, as administrative agent and collateral agent,

 4
 

as amended, amended and
restated, modified or supplemented or refinanced or replaced from time to time.

“GE Credit Agreement” means the Credit
Agreement, dated as of September 29, 2006, among Hertz and Puerto Ricancars,
Inc., as borrowers, the lenders from time to time parties thereto and Gelco
Corporation dba GE Fleet Services, as administrative agent, domestic collateral
agent and PRUSVI collateral agent, as amended, amended and restated modified or
supplemented or refinanced or replaced from time to time.

“GE Financed Vehicle” shall mean a Vehicle that
is owned by Hertz that is registered or submitted for registration in the state
of Hawaii or Kansas, regardless of whether the GE Collateral Agent is the named
lienholder for such Vehicle.  Buses,
salvage vehicles and tow trucks shall not be deemed to be GE Financed Vehicles.

“GE Loan Documents” shall have the meaning
assigned to the term “Loan Documents” in the GE Credit Agreement.

“Hertz” shall have the meaning set forth in the
preamble hereto.

“Hertz Exchange Account” shall mean any
Exchange Account that receives funds from a Joint Collection Account or another
Exchange Account relating to Relinquished Property Proceeds from a Vehicle that
was owned by Hertz in the circumstances described in Section 4.02(a)
hereof.

“Hertz GE Exchange Account” shall mean the
Hertz Exchange Account maintained pursuant to the provisions of the GE Credit
Agreement and the GE Collateral Agreement.

“HGI” shall have the meaning set forth in the
preamble hereto.

“HGI Exchange Account” shall mean any Exchange
Account that (a) receives funds from a Joint Collection Account or another
Exchange Account relating to Relinquished Property Proceeds from a Vehicle that
was owned by HGI in the circumstances described in Section 4.02(a) hereof
and (b) may receive funds from an HVF Exchange Account or a Hertz Exchange
Account in the circumstances described in Section 4.02(a) hereof.

“HVF” shall have the meaning set forth in the
preamble hereto.

“HVF Exchange Account” shall mean any Exchange
Account that receives funds from a Joint Collection Account or another Exchange
Account relating to Relinquished Property Proceeds from a Vehicle that was
owned by HVF in the circumstances described in Section 4.02(a)
hereof.

“Identification Period” shall mean, with
respect to the Relinquished Property transferred in an Exchange, as defined in
Section 1.1031(k)-l(b)(2) of the Treasury Regulations, the period beginning on
the date such Relinquished Property is transferred to the QI and ending at
11:59 p.m. (New York City time) on the forty-fifth (45th) calendar day
thereafter (irrespective of whether such day is a weekend day or a holiday).

 5
 

“Identified Replacement Vehicles” means
vehicles that have been identified and designated as Replacement Property with
respect to Relinquished Property pursuant to Section 3.01 hereof, provided
such identification has not been revoked pursuant to Section 3.02 hereof.

“Independent Director” shall mean a Person who
is not, and during the previous five years was not (i) a stockholder,
member, partner, director, officer, employee, affiliate, associate, creditor or
independent contractor of Owner or any of its affiliates or associates
(excluding, however, any service provided by a Person engaged as an “independent”
manager or director, as the case may be) or (ii) a Person owning directly
or beneficially any outstanding shares of common stock of Owner or any of its
affiliates, or a stockholder, director, officer, employee, affiliate,
associate, creditor or independent contractor of such beneficial owner or any
of such beneficial owner’s affiliates or associates, or (iii) a member of
the immediate family of any Person described above.

“Joint Collection Account” shall mean any
account maintained by the Collateral Agent, in the joint name of the QI and the
Collateral Agent (as a Collateral Account) pursuant to Section 2.5(a) of
the Collateral Agency Agreement that (1) processes funds collected on
behalf of each Legal Entity, (2) is used for identification and subsequent
separation of the portion of such funds attributable to receipts of Hertz, HVF,
and HGI and (3) is used to separate Relinquished Property Proceeds from
Additional Subsidies.

“Joint Disbursement Account” shall mean an
account as defined in Section 5.02 of Revenue Procedure 2003-39 (1)
that is used to receive Relinquished Property Proceeds from an Exchange Account
and any Additional Subsidies from whatever source, and (2) which may be used to
disburse Relinquished Property Proceeds and Additional Subsidies in order to
acquire Replacement Property and to disburse Additional Subsidies to make
Non-LKE Disbursements.

“Legal Entity” shall mean each of Hertz, HVF or
HGI, individually.

“Licensed Trademark” shall have the meaning set
forth in Section 6.10(a) hereof.

“Licensed Services” shall have the meaning set
forth in Section 6.10(a) hereof.

“Material Action” shall mean any action
described in clauses (i) through (iii) of Section 8(a) of the QI’s certificate
of incorporation.

“LKE Program” shall have the meaning set forth
in the recitals hereto.

“Non-LKE Disbursements” shall mean
disbursements for items other than the acquisition of Replacement Property
(including the acquisition of non-Replacement Property and any fees, expenses
or other costs required to be paid pursuant to Section 7.02 hereof) that
are funded solely with Additional Subsidies.

“Non-Qualified Funds” shall mean all amounts
that are deposited into the Joint Collection Accounts that are not Relinquished
Property Proceeds.

 6
 

“Owner” shall mean Property Holdings, or any
other entity that acquires all of the issued and outstanding shares of the QI
pursuant to Section 6.10 hereof.

“Qualified Earnings” shall mean, with respect
to any Relinquished Property, the earnings received on the Relinquished
Property Proceeds from such Relinquished Property that have been held in an
Escrow Account for a period not exceeding the Exchange Period for such
Relinquished Property.

“Qualified Intermediary” shall have the meaning
set forth in the recitals hereto.

“QI” shall have the meaning set forth in the
preamble hereto.

“QI Indemnitee” shall have the meaning set
forth in Section 5.02(a) hereof.

“QI Parent Downgrade Event” shall mean, on any
date of determination, either (i) JPMorgan Chase Bank, N.A. (or any entity
that becomes the ultimate parent of the QI) shall have a short-term credit
rating of below “A-1+” from S&P or below “P-1” from Moody’s or (ii) if
at any time JPMorgan Chase Bank, N.A. (or any entity that becomes the ultimate
parent of the QI) does not have a short-term credit rating, JPMorgan Chase
Bank, N.A. (or any entity that is a successor to JPMorgan Chase Bank, N.A. as
the ultimate parent of the QI) shall have a long-term credit rating of below “AA-”
from S&P or below “Aa3” from Moody’s.

“Relinquished Property” shall mean certain
vehicles used in Exchangor’s business and qualifying as “relinquished property”
within the meaning of Section 1.1031(k)-1(a) of the Treasury Regulations,
which have been identified as such in a written notice delivered by a Legal
Entity pursuant to Section 2.05 hereof to each other party to the
applicable Relinquished Property Agreement of the assignment of such
Relinquished Property Agreement to the QI.

“Relinquished Property Agreement” shall mean
any agreement relating to the sale or other disposition of Relinquished
Property, including but not limited to each Manufacturer Program relating to
Relinquished Property of a Legal Entity, each agreement arising from the
exercise by a Legal Entity of its right to sell a Vehicle that is Relinquished
Property to a Manufacturer pursuant to the terms of its Manufacturer Program
and each agreement by a Legal Entity to sell a Vehicle that is Relinquished
Property to any third party otherwise than pursuant to a Manufacturer Program.

“Relinquished Property Proceeds” shall mean,
funds derived from or otherwise attributable to the transfer of Relinquished
Property, including any Qualified Earnings thereon, and excluding earnings
thereon that do not constitute Qualified Earnings.

“Replacement Property” shall mean certain
vehicles that are like-kind, as defined in Sections 1.1031(a)-1(b) and
1.1031(a)-2 of the Treasury Regulations, to the Relinquished Property and held
for productive use, as described in Section 1.1031(a)-1 of the Treasury
Regulations, in connection with Exchangor’s business operations and qualifying
as “replacement property” within the meaning of Section 1.1031(k)-1(a) of
the Treasury Regulations.

 7
 

“Replacement Property Acquisition Cost” shall
mean, with respect to a Replacement Property, the amount of consideration
required to be paid to the Seller of such Replacement Property under any
related Replacement Property Agreement.

“Replacement Property Agreement” shall mean any
agreement (including an obligation of HGI) relating to the acquisition of
Replacement Property, including but not limited to each agreement by HGI to
purchase a vehicle which is Replacement Property from a Manufacturer or a
vehicle dealer, whether such agreement to purchase arises under a Manufacturer
Program or otherwise.

“Rights” shall mean (1) with respect to
any Relinquished Property, each Legal Entity’s rights in a Relinquished
Property Agreement (but not its obligations), as defined in Treasury
Regulations Section 1.1031(k)-1(g)(4)(iv) and (v), to sell the Relinquished
Property and (2) with respect to any Replacement Property, each Legal
Entity’s rights in a Replacement Property Agreement (but not its obligations),
as defined in Treasury Regulations Section 1.1031(k)-1(g)(4)(iv) and (v),
to acquire the Replacement Property.

“S&P” shall mean Standard and Poor’s Rating
Service or any successor thereto.

“Safe Harbor” shall mean any one or more of the
safe harbors described in Section 1.1031(k)-1(g) of the Treasury
Regulations and any one or more of the safe harbor provisions of Revenue
Procedure 2003-39.

“Sale Notice” shall have the meaning set forth
in Section 6.10(a) hereof.

“Seller” shall have the meaning set forth in
the recitals hereto.

“Start Date” shall mean the date on which
Exchangor begins exchanging vehicles in the applicable LKE Program.

“Termination Date” shall have the meaning set
forth in Section 7.01(a) hereof.

“Treasury Regulations” shall have the meaning
set forth in the recitals hereto.

“Vehicle” shall mean a “Vehicle” (as defined in
Schedule I to the Base Indenture) or a passenger automobile, light-duty truck,
bus or tow truck which is owned by Hertz, as applicable.

ARTICLE II

General Exchange
Provisions

SECTION 2.01.  Exchange of
Property.  (a)  In accordance with the terms of this
Agreement, the QI agrees to transfer Relinquished Property to a Buyer, pursuant
to the terms of Section 2.02 hereof, and to subsequently acquire
Replacement Property of a like-kind from a Seller pursuant to the terms of
Section 2.03 hereof in transactions intended to qualify as exchanges under
Section 1031 of the Code.

 8
 

(b)  No transfer by a Legal
Entity of Relinquished Property pursuant to this Agreement shall be made unless
each of the following conditions are satisfied: 
(u) the Escrow Agreement shall be in effect; (v) no
Manufacturer Event of Default with respect to the Manufacturer Program pursuant
to which such Relinquished Property is intended to be transferred pursuant to
this Agreement shall have occurred and be continuing at the time of such
transfer; (w) in connection with the transfer of any Program Vehicle
pursuant to an Eligible Manufacturer Program, the applicable Legal Entity shall
have contracted to sell such Program Vehicle pursuant to such Eligible
Manufacturer Program (the Manufacturer party to which shall have consented to
the purchase and sale of Vehicles by the QI pursuant to an Assignment
Agreement, which consent shall not have been revoked) and shall have directed
the QI to sell such Program Vehicle pursuant to such Eligible Manufacturer
Program on the date such Program Vehicle becomes Relinquished Property pursuant
to this Agreement; (x) on the date of any transfer of any Vehicle to the
QI, the only obligations or liabilities, if any, secured by such Vehicle are
obligations or liabilities arising under the Related Documents, the GE Credit
Agreement, the GE Collateral Agreement or the other GE Loan Documents;
(y) solely with respect to (i) a proposed transfer by HVF of Relinquished
Property pursuant to this Agreement or (ii) a proposed transfer by Hertz of
Relinquished Property with respect to a GE Financed Vehicle pursuant to this
Agreement, as of the date of any such transfer, a QI Parent Downgrade Event
shall not have occurred and continued unremedied for a period of seven calendar
days (ending at 11:59 p.m. on such seventh day) prior to such date (unless
such QI Parent Downgrade Event has been remedied) and (z) on the date of
any such transfer, the following statements shall be true:  (i) solely with respect to a proposed
transfer by HVF of Relinquished Property pursuant to this Agreement, no
Potential Amortization Event or Amortization Event and no Liquidation Event of
Default or Limited Liquidation Event of Default has occurred and is continuing
or would result from the making of such transfer, (ii) solely with respect to a
proposed transfer by Hertz of Relinquished Property with respect to a GE Financed
Vehicle pursuant to this Agreement, no Event of Default has occurred and is
continuing or would result from the making of such transfer, (iii) the
Termination Date has not occurred and (iv) the representations and
warranties of the QI in Article VI hereof are true and correct on and as
of such date and shall be deemed to have been made on and as of such date with
the same effect as though made on and as of such date.  In connection with any such transfer of
Relinquished Property, (A) the applicable Legal Entity, by making such
transfer, shall be deemed to have represented and warranted to the effect set
forth in clauses (z)(i), (ii) and (iii) above, and (B) the QI shall
be deemed to have represented and warranted to the effect set forth in clause (z)(iv)
above.

SECTION 2.02.  Disposition and
Transfer of Relinquished Property. 
Each Legal Entity has entered, and/or from time to time may enter, into
one or more Relinquished Property Agreements with one or more Buyers for the
sale of Relinquished Property.  In
connection with each Exchange, the applicable Legal Entity shall, in accordance
with Section 1.1031(k)-1(g)(4)(v) of the Treasury Regulations:  (a) assign to the QI all of its Rights
with respect to such Relinquished Property under the applicable Relinquished
Property Agreements in accordance with Section 2.04 hereof, such
assignment to be made without recourse to the QI (and the QI agrees to accept
such assignments); (b) notify all parties to the applicable Relinquished
Property Agreements in writing of the assignment in accordance with
Section 2.05 prior to or concurrent with the date of transfer of the
Relinquished Property to the applicable Buyer, and (c) transfer its
interest in the Relinquished Property to the applicable Buyer pursuant to the
applicable Relinquished Property Agreements.

 9
 

SECTION 2.03.  Acquisition and
Transfer of Replacement Property. 
HGI has entered, and/or from time to time may enter, into one or more
Replacement Property Agreements with one or more Sellers for the purchase of
Replacement Property.  In connection with
each Exchange, HGI shall, in accordance with Section 1.1031(k)-1(g)(4)(v)
of the Treasury Regulations: 
(a) assign to the QI all of its Rights with respect to such
Replacement Property under the applicable Replacement Property Agreements in
accordance with Section 2.04 hereof, any such assignment to be made
without recourse to the QI (and the QI agrees to accept such assignments);
(b) notify all parties to the applicable Replacement Property Agreement in
writing of the assignment in accordance with Section 2.05 prior to or
concurrent with the date of transfer of the Replacement Property from the
applicable Seller, and (c) receive an ownership interest in the
Replacement Property from the applicable Seller pursuant to the applicable
Replacement Property Agreement.

SECTION 2.04.  Assignment of
Agreements.

(a)  Existing Agreements.  Each Legal Entity hereby assigns to the QI,
solely in the QI’s capacity as Qualified Intermediary, such Legal Entity’s
Rights, but not its obligations, under each related Relinquished Property
Agreement to which such Legal Entity is a party as of the date hereof, such
assignment to be effective only upon such Legal Entity’s transfer of such
Relinquished Property pursuant to Section 2.02 hereof and only with
respect to such Relinquished Property, and the QI hereby agrees to accept such
assignment, solely in its capacity as Exchangor’s Qualified Intermediary.  HGI hereby assigns to the QI, solely in the
QI’s capacity as Exchangor’s Qualified Intermediary, HGI’s Rights, but not its
obligations, under each related Replacement Property Agreement to which HGI is
a party as of the date hereof with respect to such Replacement Property, and
the QI hereby accepts such assignment, solely in its capacity as Exchangor’s
Qualified Intermediary.

(b)  New Agreements.  Each Legal Entity hereby assigns to the QI,
solely in the QI’s capacity as Qualified Intermediary, such Legal Entity’s
Rights, but not its obligations, under each related Relinquished Property
Agreement that it enters into after the date of this Agreement, such assignment
to be effective only upon such Legal Entity’s transfer of such Relinquished
Property pursuant to Section 2.02 hereof and only with respect to such
Relinquished Property.  HGI hereby assigns
to the QI, solely in the QI’s capacity as Qualified Intermediary, HGI’s Rights,
but not its obligations, under each Replacement Property Agreement that it
enters into after the date of this Agreement with respect to such Replacement
Property.  Unless otherwise agreed by the
parties, each Legal Entity shall make available to the QI a report of daily
activity listing such new agreements into which it entered during the period
covered by such report.  The QI shall and
hereby does accept each assignment pursuant to this Section 2.04(b) from
each Legal Entity, solely in its capacity as Exchangor’s Qualified
Intermediary.

(c)  Revocation of, or Change
in, Assignment.  (i) By notice
to the QI, each Legal Entity may revoke its assignment to the QI of its Rights
with respect to any Replacement Property identified in such notice.  (ii) By notice to the QI, each Legal
Entity may cease assigning to the QI such Legal Entity’s Rights pursuant to
this Section 2.04 with respect to any of its Relinquished Property identified
in such notice and any related Relinquished Property Agreement, if then in
existence, whereupon the property identified in such notice shall cease to be
Relinquished Property and any related agreement shall cease to be a
Relinquished Property

 10
 

Agreement to
the extent related to the property specified in such notice.  (iii) Not later than the Termination
Date specified in any notice of termination delivered pursuant to
Section 7.01(a) hereof or the Special Termination Date specified in
Section 7.01(b) hereof, the applicable Legal Entity or all the Legal Entities,
in the case of the occurrence of the Special Termination Date, shall cease
assigning to the QI its Rights with respect to any Relinquished Property
arising on or after such date.  Any such
notices shall only be effective with respect to property transferred or
received after the date on which such notice is given.

(d)  Safe Harbor.  For purposes of the Code and the Treasury
Regulations, each assignment to the QI made by a Legal Entity pursuant to this
Section 2.04 is made by Exchangor pursuant to the assignment Safe Harbor
set forth in Section 6.02 of Revenue Procedure 2003-39 and,
except as may be otherwise required by applicable law, shall be effective when
provided in Section 2.04(a) or 2.04(b) hereof, as applicable, without the
need for any further actions other than those provided in Sections 2.01,
2.02, 2.03, 2.04(a) and 2.04(b) hereof by a Legal Entity or the QI with respect
to the transfer of any Relinquished Property or any Replacement Property.

(e)  Limitation on Rights
Transferred to QI.  Each of the
parties hereto agrees and acknowledges that any assignment to the QI hereunder
shall not give the QI any rights under any Relinquished Property Agreement to
which any Legal Entity is a party relating to the disposition of a Vehicle
except the Rights in respect of a Vehicle that becomes Relinquished
Property.  The QI hereby acknowledges
that it shall have no interest in any Relinquished Property Agreement with
respect to any Vehicle that is not Relinquished Property.

SECTION 2.05.  Notice to
Purchasers and Sellers.  Each Legal
Entity represents and agrees that it will provide notice, on or before the date
of the relevant transfer of property, to each other party to any Relinquished
Property Agreement or any Replacement Property Agreement with respect to which
any of its Rights thereunder have been assigned to the QI that such Legal
Entity’s Rights in such Relinquished Property Agreement or such Replacement
Property Agreement, as the case may be, have been assigned, to the extent set
forth herein, to the QI, as its Qualified Intermediary.

SECTION 2.06.  Direct
Transfers.  For purposes of this
Agreement, the QI shall be considered to have (1) acquired Relinquished
Property from Exchangor and transferred it to the Buyer thereof in each case
where such Relinquished Property is in fact transferred by a Legal Entity
directly to such Buyer pursuant to the relevant Relinquished Property Agreement
in accordance with Section 2.02 hereof, and (2) acquired Replacement
Property from the Seller thereof and transferred it to Exchangor in each case
where the Replacement Property is in fact transferred by such Seller to HGI
pursuant to the relevant Replacement Property Agreement in accordance with
Section 2.03 hereof, in each case as provided by
Sections 1.1031(k)-1(g)(4)(iv) and (v) of the Treasury Regulations.

Each Legal Entity and the QI agree that the QI shall
not (1) take possession of, (2) hold legal title to, or (3) be
the registered owner of, any Relinquished Property or Replacement Property.

SECTION 2.07.  Matching of
Relinquished and Replacement Property. 
Exchangor shall match Replacement Property with Relinquished Property
for each Exchange on

 11
 

its books and
records in accordance with Section 1.1031(a)-2 of the Treasury Regulations
and the Safe Harbor set forth in Sections 4.01 and 4.02 of Revenue
Procedure 2003-39.

SECTION 2.08.  Disclosure of
Relationship.  Each Legal Entity
acknowledges and agrees that the QI shall have the right to disclose the
relationships set forth in this Agreement to any Seller, Buyer or other person
and that the QI is, and is acting in the sole capacity as, Exchangor’s
Qualified Intermediary.

SECTION 2.09.  Exclusivity.  Except as permitted under this Agreement and
the Escrow Agreement, the QI agrees that it will not enter into any agreements
or conduct any transactions or other business other than agreements,
transactions or business with the Legal Entities pursuant to agreements between
such Legal Entities and the QI, or any transactions directly ancillary thereto.

SECTION 2.10.  Records.  The QI agrees that it will monitor and keep
detailed and accurate records of the transactions carried out pursuant to this
Agreement, including the dollar amounts involved in each of such transactions.  Such records shall include information
concerning the date of each transfer of Relinquished Property to a Buyer and
the date of each receipt of Replacement Property from a Seller.  Such records shall be maintained in
accordance with recognized accounting practices and in such a manner so as they
may be readily audited.  All such records
will be available for inspection by the Collateral Agent, the GE Collateral
Agent, the Trustee, each Enhancement Provider and each Legal Entity, or its
designated representatives, upon such Legal Entity’s request, at reasonable,
mutually agreeable times, while this Agreement remains in force.  After expiration, termination or cancellation
of this Agreement, at the applicable Legal Entity’s expense (which expenses
shall be reasonable and approved by such Legal Entity), the QI shall continue
to maintain such records, and to allow such Legal Entity to audit or inspect
the records, until such time as such Legal Entity notifies the QI that the
records are no longer required.  The QI
shall cooperate with the applicable Legal Entity, or its designated
representatives, in the conduct of any such inspection.  Notwithstanding anything set forth above, unless
otherwise requested by a Legal Entity, the records relating to any particular
day’s activities may be destroyed at any time, upon 10 Business Days’ prior
written notice to the applicable Legal Entity, after the date which is ten (10)
years from the date such record was originated.

ARTICLE III

Identification

SECTION 3.01.  Identification
of Replacement Property.  Any Legal
Entity may, at any time during the Identification Period, with respect to an
Exchange, by written notice to the QI, signed by such Legal Entity and sent to
the QI in any manner prescribed by Section 1.1031(k)-1(c)(2) of the
Treasury Regulations, identify and designate the Replacement Property with
respect to the Relinquished Property transferred in such Exchange; provided,
however, that (a) HVF shall not so identify and designate
Replacement Property (i) after 11:59 p.m. on the seventh calendar day
after the occurrence of a QI Parent Downgrade Event that continues unremedied
at such time, unless such QI Parent Downgrade Event has been remedied or
(ii) after the occurrence of an Amortization Event with respect to any
Series of Notes or an

 12
 

Event of
Termination pursuant to the Purchase Agreement; (b) Hertz shall not so identify
and designate Replacement Property with respect to GE Financed Vehicles (i)
after 11:59 p.m. on the seventh calendar day after the occurrence of a QI
Parent Downgrade Event that continues unremedied at such time, unless such QI
Parent Downgrade Event has been remedied or (ii) after the occurrence of an
Event of Default that continues unremedied at such time; and (c) no Legal
Entity shall so identify and designate Replacement Property after the Special
Termination Date.  The Legal Entities
shall only designate Replacement Property that is like-kind to such
Relinquished Property, as defined in Sections 1.1031(a)-(b) and
1.1031(a)-2 of the Treasury Regulations. 
The Legal Entities shall identify as Replacement Property either
(a) no more than three vehicles in the aggregate or (b) any number of
vehicles whose aggregate fair market value does not exceed 200% of the
aggregate fair market value of the related Relinquished Property involved in
such Exchange.

SECTION 3.02.  Revocation of
Identification.  (a)  Any identification by a Legal Entity pursuant
to Section 3.01 hereof may be revoked by written notice from any Legal
Entity to the QI prior to the end of the Identification Period.

(b)  Upon the occurrence of an
Amortization Event with respect to any Series of Notes or an Event of
Termination pursuant to the Purchase Agreement, any identification pursuant to
Section 3.01 with respect to Relinquished Property of HVF which can be revoked
pursuant to Section 3.02(a) shall be revoked; and upon the occurrence of an
Event of Default, any identification pursuant to Section 3.01 with respect to
Relinquished Property of Hertz with respect to GE Financed Vehicles which can
be revoked pursuant to Section 3.02(a) shall be revoked.

(c)  If a QI Parent Downgrade
Event shall have occurred and continues unremedied at 11:59 p.m. on the seventh
calendar day after the occurrence of such event, any identification pursuant to
Section 3.01 with respect to Relinquished Property of HVF or Relinquished
Property of Hertz with respect to GE Financed Vehicles which can be revoked
pursuant to Section 3.02(a) shall be revoked.

(d)  Hertz will give the QI
written notice of the occurrence of an Amortization Event with respect to any
Series of Notes, an Event of Termination pursuant to the Purchase Agreement, an
Event of Default or a QI Parent Downgrade Event promptly after Hertz becomes
aware of the occurrence of such event.

ARTICLE IV

Accounts

SECTION 4.01.  Accounts.  (a) 
Each Legal Entity and the QI shall enter into the Escrow Agreement with
the QI and the Escrow Agent, pursuant to which the Legal Entities and the QI
shall maintain one or more Exchange Accounts and Joint Disbursement Accounts,
at Bank of New York or JPMorgan Chase Bank, N.A.  One or more Joint Collection Accounts have
been or will be established and will be maintained by the Collateral Agent in
accordance with Section 2.5 of the Collateral Agency Agreement; one or more
HVF Exchange Accounts have been or will be established and will be maintained
by the Trustee in accordance with

 13
 

Section 5A.1
of the Base Indenture, each in the name of “BNY Midwest Trust Company, as
Trustee, and Hertz Car Exchange Inc., as Qualified Intermediary for HVF”; and
one or more Hertz GE Exchange Accounts have been or will be established and
will be maintained by the GE Collateral Agent in accordance with the provisions
of the GE Credit Agreement and the GE Collateral Agreement, each in the name of
“Gelco Corporation dba GE Fleet Services, as Collateral Agent, and Hertz Car
Exchange, Inc., as Qualified Intermediary for Hertz”.  All such Accounts shall be operated in
accordance with the terms of this Agreement, the Collateral Agency Agreement, the
Base Indenture, the GE Credit Agreement and the GE Collateral Agreement, as
applicable.  If any Joint Collection
Account is not maintained in accordance with Section 2.5 of the Collateral
Agency Agreement, then within ten (10) Business Days of obtaining knowledge of
such fact, the Collateral Agent and the QI shall establish a new Joint
Collection Account which complies with such section and transfer into the new
Joint Collection Account all funds from the old Joint Collection Account.  If any HVF Exchange Account is not maintained
in accordance with Section 5A.1 of the Base Indenture, then within ten (10)
Business Days of obtaining knowledge of such fact, the Trustee and the QI shall
establish a new HVF Exchange Account which complies with such section and
transfer into the new HVF Exchange Account all funds from the old HVF Exchange
Account.  If any Hertz GE Exchange
Account is not maintained in accordance with the provisions of the GE Credit
Agreement and the GE Collateral Agreement, then within ten (10) Business Days
of obtaining knowledge of such fact, the GE Collateral Agent and the QI shall
establish a new Hertz GE Exchange Account which complies with such provisions
and transfer into the new Hertz GE Exchange Account all funds from the old
Hertz GE Exchange Account.

(b)  The Joint Collection
Accounts are intended to facilitate the orderly and efficient collection of
proceeds from the disposition of the Relinquished Property, including the
collection of all Relinquished Property Proceeds, and to allow (1) the
identification and subsequent separation of the portion of such funds
attributable to Vehicles disposed of by Hertz, HVF or HGI and (2) the
further identification and subsequent separation of the portion of such funds
of each Legal Entity that are Relinquished Property Proceeds of such Legal
Entity from the portion of such funds that are Non-Qualified Funds of such
Legal Entity.  All proceeds received from
Buyers by or on behalf of the QI or a Legal Entity in respect of sales of
Relinquished Property shall be immediately deposited in a Joint Collection
Account.

(c)  The Exchange Accounts are
intended (i) to receive all Relinquished Property Proceeds and
(ii) (A) in the case of an HVF Exchange Account or a Hertz Exchange
Account, to provide Relinquished Property Proceeds to an HGI Exchange Account
upon the purchase of a vehicle by Hertz or HVF from HGI and (B) in the
case of an HGI Exchange Account, to provide Relinquished Property Proceeds to
the Joint Disbursement Accounts.

(d)  The Joint Disbursement
Accounts are intended to facilitate the orderly and efficient disbursement of
funds to the Sellers, including the disbursement of all funds relating to the
acquisition of Replacement Property under the LKE Program.

(e)  Pursuant to the Escrow
Agreement, Relinquished Property Proceeds held by the QI on behalf of a Legal
Entity in (i) an HVF Exchange Account shall be invested in Permitted
Investments, (ii) a Hertz GE Exchange Account shall be invested in Cash
Equivalents (as defined in the GE Credit Agreement) or (iii) any other
Exchange Account shall be invested as

 14
 

directed by
Hertz or HGI, in each case, until such funds are used, in the case of Hertz or
HVF, to fund an HGI Account upon the purchase of a vehicle from HGI, and in the
case of HGI, to fund a Joint Disbursement Account, as the case may be.

(f)  All Relinquished Property
Proceeds (and any earnings thereon), whether in a Joint Collection Account, a
Joint Disbursement Account or an Exchange Account, shall be held subject to
Sections 1.1031(k)-1(g)(4)(ii) and 1.1031(k)-1(g)(6) of the Treasury
Regulations, including the restrictions on Exchangor’s right to receive,
pledge, borrow, or otherwise obtain the benefits of Relinquished Property
Proceeds and Qualified Earnings thereon held by the QI.  Subject to the limitation that each Legal
Entity shall have no right to receive, pledge, borrow, or otherwise obtain the
benefits of Relinquished Property Proceeds or the Qualified Earnings thereon
held by either the QI or the bank maintaining the account where such
Relinquished Property Proceeds are on deposit, Relinquished Property Proceeds
may be withdrawn from any Exchange Account or Joint Disbursement Account upon a
Disbursement Occurrence with respect to the related Relinquished Property.  Upon any Disbursement Occurrence, the QI
shall, at such time and in satisfaction of the QI’s remaining obligations under
this Agreement as to the related Exchange with respect to such Disbursement
Occurrence, have the bank maintaining the Account where the applicable funds
are on deposit pay any remaining amount relating to such Exchange, including
without limitation accumulated interest as to such Exchange in any Exchange
Account, to, or as directed by, the Legal Entities; provided that in the case
of HVF, such amount shall be paid to the Collection Account.

SECTION 4.02.  Separation and
Application of Funds in Joint Collection Accounts and Exchange Accounts;
Proceeds from Transfer of Relinquished Property by the QI.

(a)  Identification of Funds.  On each Business Day, (i) each Legal Entity
shall: (1) identify funds in the Joint Collection Accounts as of such
Business Day which constitute Non-Qualified Funds with respect to such Legal
Entity and direct the QI to immediately transfer such funds to (A) in the case
of Non-Qualified Funds of HVF, the Collection Account, (B) in the case of
Non-Qualified Funds of Hertz with respect to GE Financed Vehicles, the GE
Collateral Account and (C) in the case of other Non-Qualified Funds of Hertz or
Non-Qualified Funds of HGI, to such other account as shall be specified by the
applicable Legal Entity; (2) initiate on such Business Day proposed
Electronic Funds Transfers from the Joint Collection Accounts in order to
transfer funds in the Joint Collection Accounts as of such Business Day which
constitute Relinquished Property Proceeds with respect to Relinquished Property
transferred by such Legal Entity to the applicable Exchange Account and
(3) notify the QI and (A) in the case of transfers to the Collection
Account or an HVF Exchange Account, the Trustee or (B) in the case of transfers
to the GE Collateral Account or a Hertz GE Exchange Account, the GE Collateral
Agent of such proposed transfers and (ii) each Legal Entity shall:  (1) identify funds in the Exchange Accounts
as of such Business Day which constitute Non-Qualified Funds with respect to
such Legal Entity and direct the QI to immediately transfer such funds to (A)
in the case of Non-Qualified Funds of HVF, the Collection Account, (B) in the
case of Non-Qualified Funds of Hertz with respect to GE Financed Vehicles, the
GE Collateral Account and (C) in the case of other Non-Qualified Funds of Hertz
and Non-Qualified Funds of HGI, to such other account as shall be specified by
the applicable Legal Entity; (2) initiate on such Business Day proposed
Electronic Funds Transfers from (x) an Exchange Account in order to transfer
funds in such Exchange Account as of such Business Day which constitute
Relinquished Property Proceeds

 15
 

with respect
to Relinquished Property transferred by a Legal Entity (but which funds were
previously transferred to the Exchange Account of a different Legal Entity) to
the applicable Exchange Account, provided that, in the case of an HVF Exchange
Account, no Aggregate Asset Amount Deficiency exists or would result therefrom,
and (y) a Hertz Exchange Account or an HVF Exchange Account in order to
transfer funds in such Exchange Account as of such Business Day which
constitute Relinquished Property Proceeds with respect to Relinquished Property
transferred by such Legal Entity hereunder to an HGI Exchange Account upon the
purchase of a vehicle by Hertz or HVF from HGI and (3) notify the QI and,
in the case of a transfer from an HVF Exchange Account, the Trustee or, in the
case of a transfer from a Hertz GE Exchange Account, the GE Collateral Agent of
such proposed transfers.

(b)  Approval of Certain
Transfers.  If upon notification to
the QI of the proposed Electronic Funds Transfers of Relinquished Property
Proceeds pursuant to clause (i)(2) or (ii)(2) of Section 4.02(a)
hereof, the QI approves of such proposed Electronic Funds Transfers, the QI
agrees to take, within one hour of the receipt of such notification of
transfers, all appropriate actions needed to approve and transmit such
transfers.  If the QI does not approve of
any of such proposed Electronic Funds Transfers of Relinquished Property
Proceeds, the QI shall immediately notify (1) the applicable Legal Entity, and
(A) in the case of Relinquished Property Proceeds of HVF, the Trustee or (B) in
the case of Relinquished Property Proceeds of Hertz with respect to the GE
Financed Vehicles, the GE Collateral Agent, and (2) the banking institution
maintaining the applicable Joint Collection Account or Exchange Account via
telephone or fax (any such notice given by telephone to be confirmed in
writing), of the disapproval and the reasons for such disapproval.  The QI shall cause the bank maintaining the
Joint Collection Accounts and Exchange Accounts to accept the instructions of the
applicable Legal Entity to make each Electronic Funds Transfer described in
Section 4.02(a) hereof that is subsequently approved by the QI pursuant to
this Section 4.02(b) hereof.

(c)  Ownership of Funds;
Restricted Transfers.  Each of the
Legal Entities and the QI hereby acknowledge and agree that it is the intent of
the parties hereto that funds deposited into the Joint Collection Accounts,
Exchange Accounts and Joint Disbursement Accounts and funds held in accounts
maintained by the Escrow Agent shall be used solely to enable the QI to perform
its obligations hereunder to acquire Replacement Property and shall not be
considered part of the QI’s general assets nor subject to claims by the QI’s
creditors.

(d)  Non-Qualified Funds.  The QI shall apply any Non-Qualified Funds,
or shall cooperate with each Legal Entity for purposes of executing any
authorization to cause any Non-Qualified Funds to be applied, as directed by
the applicable Legal Entity pursuant to clause (i)(1) or (ii)(1) of
Section 4.02(a) hereof.

(e)  Effectuation of Transfer.  On each Business Day, the QI shall cause the
bank maintaining each Joint Collection Account or Exchange Account to cause the
amount, if any, set forth in the instructions described in
Section 4.02(a)(i) or (a)(ii) hereof, to be transferred from such Joint Collection
Account to the applicable Exchange Account. 
The QI hereby agrees that it shall not approve any transfer of
Relinquished Property Proceeds from the Joint Collection Accounts to any
account other than an Exchange Account. 
HVF shall provide notice to the Trustee of any transfer from (i) a
Joint Collection Account to the Collection Account or an HVF Exchange Account
and (ii) an HVF Exchange Account to an HGI Exchange Account.

 16
 

SECTION 4.03.  Payment for
Replacement Property.

(a)  Reports.  On each Business Day, HGI shall provide the
QI with a report with respect to each Joint Disbursement Account setting forth
for such day (1) the aggregate Replacement Property Acquisition Cost
expected to be disbursed from such Joint Disbursement Account, (2) the aggregate
amount to be transferred to such Joint Disbursement Account from an HGI
Exchange Account, if any, to fund such aggregate Replacement Property
Acquisition Cost, (3) the amount (if any) to be transferred to such Joint
Disbursement Account from any other source to fund such aggregate Replacement
Property Acquisition Cost, (4) the aggregate amount (if any) to be
transferred to such Joint Disbursement Account from any other account, to fund
disbursements not related to the LKE Program, and (5) adjustments, if any,
to amounts previously funded from an HGI Exchange Account.

(b)  Funding by the QI.  On each Business Day, HGI shall initiate a
series of proposed Electronic Funds Transfers in order to withdraw from an HGI
Exchange Account and transfer to one or more Joint Disbursement Accounts on
such day amounts to fund the aggregate Replacement Property Acquisition Cost on
such day in accordance with the report delivered pursuant to
Section 4.03(a) hereof and shall notify the QI of such proposed Electronic
Funds Transfers.  If upon such
notification of the proposed Electronic Funds Transfers the QI approves of the
proposed Electronic Funds Transfers, the QI agrees to take, within one hour of
the receipt of such notification, all appropriate actions needed to approve and
transmit such transfers.  If the QI does
not approve of any of such proposed Electronic Funds Transfers, the QI shall
immediately notify HGI, via telephone or fax (any such notice given by
telephone to be confirmed in writing), of the disapproval and the reasons for
such disapproval.  The QI shall cause the
bank maintaining each Joint Disbursement Account to accept the instructions of
HGI to make each Electronic Funds Transfer described above that is subsequently
approved by the QI.

(c)  Shortfalls in Funding.  If, for any reason, the sum of the amounts
proposed to be transferred from an HGI Exchange Account to a Joint Disbursement
Account for the purchase of Replacement Property on any Business Day exceeds
the total amount of funds in such Exchange Account available for such purpose
on such Business Day, including any funds earned from the investment of funds
held in such Exchange Account pursuant to the Escrow Agreement, the QI shall
promptly notify HGI of such shortfall, and the amounts to be transferred to a
Joint Disbursement Account from such HGI Exchange Account on such Business Day
to fund the aggregate Replacement Property Acquisition Cost shall be reduced by
the amount of such shortfall.

(d)  Effectuation of
Transfers.  On each Business Day, the
QI shall cause the bank maintaining each Exchange Account to cause the amounts,
if any, set forth in the instructions described in Section 4.03(b) hereof,
reduced, if necessary, as described in Section 4.03(c) hereof, to be
transferred from the applicable Exchange Account to the applicable Joint
Disbursement Account.

(e)  Funding by Exchangor.  In the event that the aggregate funds
transferred from an HGI Exchange Account to the Joint Disbursement Accounts on
any Business Day are insufficient to fund all Replacement Property Acquisition
Costs and Non-LKE Disbursements to be made from each Joint Disbursement Account
on such day, the QI shall promptly notify HGI

 17
 

of such
shortfall, and HGI may transfer Additional Subsidies to the applicable Joint
Disbursement Account in an amount sufficient for the QI to acquire the
Replacement Property and make such Non-LKE Disbursements.  The QI shall not be required to pay
Replacement Property Acquisition Costs or make Non-LKE Disbursements for which
sufficient funds are not available.

SECTION 4.04.  Investment of
Funds in the Exchange Account.

(a)  Investment of Funds.  On each Business Day, all funds in the
Exchange Accounts shall be invested in accordance with the terms of
Section 4.01(e) and the Escrow Agreement. 
Each Legal Entity shall provide the QI instructions from time to time in
accordance with the Escrow Agreement setting forth the manner in which such
funds shall be invested.

(b)  Interest Reporting.  Each Legal Entity and the QI acknowledge and
agree that the income earned on funds invested pursuant to the Escrow Agreement
will be attributed to Exchangor for income tax purposes.

SECTION 4.05.  Disbursements
from Account.  All Relinquished
Property Proceeds shall be held subject to the terms of this Agreement
(including, without limitation, the terms of Section 4.01(f) and,
following any transfer of such Relinquished Property Proceeds to an Exchange
Account or a Joint Disbursement Account in accordance with the terms hereof,
the Escrow Agreement.

SECTION 4.06.  Disbursement
Occurrence.  All Relinquished
Property Proceeds and Additional Subsidies shall be held subject to the terms
of this Agreement, the Escrow Agreement, the Collateral Agency Agreement, and,
in the case of Relinquished Property Proceeds and Additional Subsidies with
respect to GE Financed Vehicles, the GE Credit Agreement and the GE Collateral
Agreement.  In particular, all
Relinquished Property Proceeds (and any Qualified Earnings thereon) shall be
held subject to Treasury Regulations Sections 1.1031(k)-1(g)(4)(ii) and
(g)(6).  Without limiting the foregoing,
Exchangor’s rights to receive, pledge, borrow, or otherwise obtain the benefits
of any Relinquished Property Proceeds (whether in the form of money or other
property) and any Qualified Earnings thereon are expressly limited as provided
in Treasury Regulations Sections 1.1031(k)-1(g)(4)(ii) and
1.1031(k)-1(g)(6).  Exchangor shall have
no right to receive, pledge, borrow, or otherwise obtain the benefits of
Relinquished Property Proceeds or the Qualified Earnings thereon held in the
Accounts except for amounts withdrawn solely for one of the following
occurrences (each a “Disbursement Occurrence”):  (a) if Exchangor has not identified, or has
revoked an identification with respect to, any Replacement Property on or
before the end of the Identification Period, (b) after identification and after
the Identification Period has expired, Exchangor has received all of the
identified Replacement Property to which Exchangor is entitled, (c) after the end
of the Exchange Period for any Relinquished Property or (d) HGI, HVF or Hertz
receiving written notification from one or more Manufacturers of Identified
Replacement Vehicles with respect to Relinquished Property, stating that
Manufacturers of Identified Replacement Vehicles will not be delivering, before
the end of the applicable Exchange Period or otherwise, Identified Replacement
Vehicles with an aggregate purchase price of at least 80% of the aggregate
proceeds of the sale of such Relinquished Property.  All funds held in the Joint Collection
Accounts, Exchange Accounts and Joint Disbursement

 18
 

Accounts shall
be subject to such restrictions as are necessary for such accounts to satisfy
the requirements of Sections 5.02 and 5.03 of Rev. Proc. 2003-39.

ARTICLE V

Indemnity By Each
Legal Entity

SECTION 5.01.  No Personal
Liability.  The parties hereto agree
that no director, officer, employee, member, shareholder or agent of any party
to this Agreement shall have any personal liability under or in connection with
this Agreement.

SECTION 5.02.  Indemnity.  (a) 
Hertz agrees to indemnify, hold harmless, and defend the QI, its
respective agents, officers, directors, employees, members and affiliates (each
a “QI Indemnitee”) from and against any and all losses, liabilities,
costs and expenses suffered in connection with any claims or actions to the
extent directly related to the QI’s involvement under this Agreement as a “Qualified
Intermediary”, pursuant to Treasury Regulation
Section 1.1031(k)-1(g)(4)(iii), unless such losses, liabilities, costs or
expenses resulted from the gross negligence or willful misconduct of a QI
Indemnitee.  This indemnity shall include
losses, liabilities and claims resulting from payments, withdrawals or orders
made or purported to be made in accordance with, or from actions taken in good
faith and in reliance upon the provisions of this Agreement.  This indemnity shall include any and all
claims arising from or in connection with the presence, release, threat of
release, generation, analysis, storage, transportation, discharge or disposal
of hazardous substances or hazardous materials (as such terms or similar terms
may be defined in the provisions of applicable federal, state or local laws,
irrespective of whether such laws, regulations, directives or ordinances are in
existence at the date of this Agreement) to, in, under, about, adjacent, or
from any Relinquished Property or Replacement Property, and all costs of
investigation, soil and water sampling, drilling, testing, reporting, repair,
removal, remediation, clean-up, closure, decontamination and detoxification of
any property, including the rental and use of any equipment used in connection
therewith; and including the cost of any professionals and persons performing
any services in connection with any environmental clean-up, in each case, to
the extent related to the QI’s involvement under this Agreement.

(b)  If the QI Indemnitee seeks
indemnification for any loss, liability, cost, expense, claim or action
described in Section 5.02(a) above, Hertz shall defend the claim at its
expense and shall pay any settlements approved by the QI Indemnitee and any
judgments which may be finally awarded, provided that Hertz shall have the
right to control the defense of such third party claims or actions. The QI
Indemnitee agrees to consult and cooperate to the extent reasonably deemed
necessary by Hertz in such defense.

SECTION 5.03.  Survival.  The indemnities in this Article V shall
survive the expiration or sooner termination of this Agreement and shall not
merge into any document executed in conjunction herewith.  It is intended that the provisions of this
Article V take precedence over the provisions of any other agreements
between the parties entered into pursuant to this Agreement, and the parties
agree that the provisions of this Article V may not be amended or modified
except by a written agreement between the parties making express reference to
this Article V.

 19

ARTICLE VI

Representations, Warranties And Covenants

SECTION 6.01.  Representations
and Warranties of the QI.  The QI
hereby represents and warrants to each Legal Entity as of the date hereof and
throughout the term of this Agreement and covenants, where applicable, with
each Legal Entity as follows:

(a)  Organization, Power,
Standing, and Qualification.  The QI
has been duly organized and is in good standing and validly existing under the
laws of the state of Delaware.  Except as
otherwise required by applicable law, the QI will only qualify to do business
or register as a sales and use tax vendor in those states requested in writing
by a Legal Entity, and all costs and expenses of same shall be paid solely by
such Legal Entity.  The QI shall at all
times operate in a manner consistent with its certificate of incorporation and
its bylaws.

(b)  Corporate Power and
Authority.  The QI has all necessary
power and authority to execute and deliver this Agreement and to perform its
obligations under this Agreement.  The QI
has duly authorized, executed and delivered this Agreement.  This Agreement is a valid and binding
obligation of the QI, enforceable in accordance with its terms.

(c)  Validity of Contemplated
Transactions.  The execution and
delivery of this Agreement by the QI and the performance of the QI’s
obligations hereunder (i) will not violate the certificate of
incorporation or bylaws of the QI, (ii) will not conflict with, violate, result
in a breach of or constitute a default under any provision of applicable law,
(iii) will not violate any order known to be issued by any court or government
agency having jurisdiction over the QI and (iv) will not conflict with,
violate, result in a breach of or constitute a default under or result in the
imposition of any lien upon any of the properties or assets of the QI under the
terms of, any agreement to which the QI is a party, which in the case of
clauses (ii), (iii) and (iv) above, would, in the aggregate, reasonably be
expected to have a material adverse effect on the legality, validity or
enforceability of this Agreement or the QI’s ability to perform its obligations
hereunder.

(d)  Indebtedness and Liens.  Except as expressly provided in this
Agreement and the Escrow Agreement, neither the QI, nor any Person acting on
behalf of or as an agent for the QI, has incurred or will incur any
indebtedness for borrowed money, or guarantee any obligations of any other
Person, or pledge, assign, transfer, or otherwise encumber (or permit or suffer
to exist any Lien or any other of the foregoing encumbrances with respect to)
its assets or any aspect of this Agreement whatsoever, including the Rights
assigned herein to the QI by each Legal Entity.

(e)  Litigation and
Compliance.  There is no action,
suit, investigation or proceeding against the QI pending or threatened before
any court, governmental agency or arbitrator that challenges, or would
reasonably be expected to have a material adverse effect on, the legality,
validity or enforceability of this Agreement.

(f)  Tax Advice.  The QI represents that, except as expressly
stated in this Agreement, at no time has it or its officers, directors,
employees, agents or affiliates made any

 20
 

representation
or rendered any advice with respect to the legal or tax aspects of the Exchanges
contemplated herein.

(g)  No Consent.  No consent of, action by or in respect of,
approval or other authorization of, or registration, declaration or filing
with, any Governmental Authority or other Person is required for the valid
execution and delivery of this Agreement by the QI or for the performance of
any of the QI’s obligations hereunder.

(h)  Solvency.  Before and after giving effect to the
transactions contemplated by this Agreement, the QI is solvent within the
meaning of the Bankruptcy Code and the QI is not the subject of any voluntary
or involuntary case or proceeding seeking liquidation, reorganization or other
relief with respect to itself or its debt under any bankruptcy or insolvency
law and no Event of Bankruptcy has occurred with respect to the QI.

(i)  Ownership.  All of the issued and outstanding shares of
the QI are owned by Owner, and have been validly issued, are fully paid and
non-assessable.  The QI has no
subsidiaries and owns no capital stock or any interest in any other Person.

(j)  No Other Agreements.  Other than as contemplated by this Agreement
and the Escrow Agreement, (i) the QI is not a party to any contract or any
agreement of any kind or nature and (ii) the QI is not subject to any
obligations or liabilities of any kind or nature in favor of any third party.

(k)  Not a Disqualified
Person.  Prior to, as of and after
the date hereof and all of the time that this Agreement is in force and effect,
the QI is not a disqualified person within the meaning of such term as set forth
in Section 1.1031(k)-1(k) of the Treasury Regulations (a “Disqualified
Person”), taking into account all exceptions and exclusions therefrom.  The QI shall not become a Disqualified Person
during the period commencing on the execution date hereof through the
Termination Date and, if any Exchange is pending after the Termination Date,
including the Exchange Period relating to the same.

SECTION 6.02.  Representations
and Warranties of Owner.  Owner
hereby represents and warrants to each Legal Entity as of the date hereof and
throughout the term of this Agreement and covenants, where applicable, with
each Legal Entity as follows:

(a)  Organization, Power,
Standing, and Qualification.  Owner
has been duly organized and is in good standing and validly existing under the
laws of the state of its organization.

(b)  Corporate Power and
Authority.  Owner has all necessary
power and authority to execute and deliver this Agreement and to perform its
obligations under this Agreement.  Owner
has duly authorized, executed and delivered this Agreement.  This Agreement is a valid and binding
obligation of Owner, enforceable in accordance with its terms.

(c)  Validity of Contemplated
Transactions.  The execution and
delivery of this Agreement by Owner and the performance of Owner’s obligations
hereunder (i) will not violate the organizational documents of Owner,
(ii) will not conflict with, violate, result in a breach of or constitute
a default under any provision of applicable law, (iii) will not violate
any order known

 21
 

to be issued
by any court or government agency having jurisdiction over Owner and
(iv) will not conflict with, violate, result in a breach of or constitute
a default under or result in the imposition of any lien upon any of the
properties or assets of Owner under the terms of, any material indenture other
material agreement to which Owner is a party, which in the case of
clauses (ii), (iii) and (iv) above, either would, in the aggregate,
reasonably be expected to have a Material Adverse Effect or would, in the
aggregate, reasonably be expected to have a material adverse effect on the
legality, validity or enforceability of this Agreement or Owner’s ability to
perform its obligations hereunder.

(d)  Litigation and
Compliance.  There is no action,
suit, investigation, litigation or proceeding against Owner pending or
threatened before any court, governmental agency or arbitrator that challenges,
or would reasonably be expected to have a material adverse effect on, the
legality, validity or enforceability of this Agreement.

(e)  Not a Disqualified
Person.  Owner shall not cause the QI
to become a Disqualified Person during the period commencing on the execution
date hereof through and including the date of transfer of any Replacement
Property to such Legal Entity as part of the LKE Program.

(f)  No Consents.  No consent of, action by or in respect of,
approval or other authorization of, or registration, declaration or filing
with, any Governmental Authority or other Person is required for the valid
execution and delivery of this Agreement by Owner or for the performance of
Owner’s obligations hereunder, other than such consents, approvals,
authorizations, registrations, declarations or filings as shall have been
previously obtained by such Owner.

(g)  Ownership of QI.  The QI is wholly owned by Owner.

SECTION 6.03.  Representations
and Warranties of Each Legal Entity. 
Each Legal Entity, separately and not jointly, hereby represents and
warrants to the QI as of the date hereof and on the date of each of the transactions
described in Article II, Article III and Article IV hereof and
covenants, where applicable, with the QI as follows:

(a)  Organization, Power,
Standing, and Qualification.  Such
Legal Entity has been duly organized and is in good standing and validly existing
under the laws of the state of Delaware.

(b)  Corporate Power and
Authority.  Such Legal Entity has all
necessary power and authority to execute and deliver this Agreement and to
perform its obligations under this Agreement. 
Such Legal Entity has duly authorized, executed and delivered this
Agreement.  This Agreement is a valid and
binding obligation of such Legal Entity, enforceable in accordance with its
terms.

(c)  Validity of Contemplated
Transactions.  The execution and
delivery of this Agreement by such Legal Entity and the performance of such
Legal Entity’s obligations hereunder (i) will not violate the certificate
of incorporation or bylaws or limited liability company agreement, as
applicable, of such Legal Entity, (ii) will not conflict with, violate,
result in a breach of or constitute a default under any provision of applicable
law, (iii) will not violate

 22
 

any order
known to be issued by any court or government agency having jurisdiction over
such Legal Entity and (iv) will not conflict with, violate, result in a
breach of or constitute a default under or result in the imposition of any lien
upon any of the properties or assets of such Legal Entity under the terms of,
any material indenture other material agreement to which such Legal Entity is a
party, which in the case of clauses (ii), (iii) and (iv) above, either would,
in the aggregate, reasonably be expected to have a Material Adverse Effect or
would, in the aggregate, reasonably be expected to have a material adverse
effect on the legality, validity or enforceability of this Agreement or such
Legal Entity’s ability to perform its obligations hereunder.

(d)  Litigation and
Compliance.  There is no action,
suit, investigation, litigation or proceeding against such Legal Entity pending
or threatened before any court, governmental agency or arbitrator that
challenges, or would reasonably be expected to have a material adverse effect
on, the legality, validity or enforceability of this Agreement.

(e)  Legal or Tax Advice.  Such Legal Entity acknowledges that neither
the QI nor any officer, director, employee, agent or affiliate of the QI has
made representation or rendered any advice with respect to the legal or tax
aspects of the Exchanges contemplated hereby. 
Such Legal Entity further acknowledges that it has been advised to seek
independent legal and tax advice regarding the LKE Program, regarding whether
any Relinquished Property and Replacement Property are like-kind under
Sections 1.1031(a)-2 and 1.1031(k)-1 of the Treasury Regulations and to
have this Agreement reviewed and approved by independent counsel.

(f)  Not a Disqualified
Person.  Such Legal Entity hereby
represents and warrants to the QI that, to the best of such Legal Entity’s
knowledge, as of the date hereof, the QI is not a Disqualified Person.  Such Legal Entity shall not cause the QI to
become a Disqualified Person during the period commencing on the execution date
hereof through and including the date of transfer of any Replacement Property
to such Legal Entity as part of the LKE Program.

(g)  No Consents.  No consent of, action by or in respect of,
approval or other authorization of, or registration, declaration or filing
with, any Governmental Authority or other Person is required for the valid
execution and delivery of this Agreement by such Legal Entity or for the
performance of any of such Legal Entity’s obligations hereunder, other than
such consents, approvals, authorizations, registrations, declarations or
filings as shall have been previously obtained by such Legal Entity.

SECTION 6.04.  Survival of
Representations and Warranties.  All
representations and warranties made herein by the parties shall survive the
execution, delivery, performance and termination of this Agreement.

SECTION 6.05.  Maintenance of
Separate Existence.  The QI covenants
and agrees that it shall do all things necessary to continue to be readily
distinguishable from Owner and its affiliates and maintain its corporate
existence separate and apart from that of Owner and its affiliates including, without
limitation, (i) practicing and adhering to organizational formalities,
such as maintaining appropriate books and records; (ii) observing all
organizational formalities in connection with all dealings between itself and
Owner, and the affiliates or any unaffiliated entity with respect to Owner;
(iii) observing all procedures required by its certificate of
incorporation, its by-laws and the laws of the state of its incorporation;
(iv) acting solely in its

 23
 

name and
through its duly authorized officers or agents in the conduct of its
businesses; (v) managing its business and affairs by or under the
direction of its board of directors; (vi) ensuring that its board of
directors duly authorizes all of its actions; (vii) maintaining at least
one director who is an Independent Director and maintaining the requirement in
its organic documents that no Material Action may be taken without the
affirmative vote of its Independent Director; (viii) owning or leasing
(including through shared arrangements with affiliates) all office furniture
and equipment necessary to operate its business; (ix) not (A) having
or incurring any indebtedness to Owner or its affiliates or any other Person;
(B) guaranteeing or otherwise becoming liable for any obligations of Owner
or its affiliates or any other Person; (C) having obligations guaranteed
by Owner or its affiliates or any other Person; (D) holding itself out as
responsible for debts of Owner or its affiliates or any other Person or for
decisions or actions with respect to the affairs of Owner or its affiliates or
any other Person; (E) operating or purporting to operate as an integrated,
single economic unit with respect to Owner, its affiliates or any other Person;
(F) seeking to obtain credit or incur any obligation to any third party
based upon the assets of Owner, its affiliates or any other Person;
(G) inducing any such third party to reasonably rely on the
creditworthiness of Owner, its affiliates or any other Person; and
(H) being directly or indirectly named as a direct or contingent
beneficiary or loss payee on any insurance policy of Owner, its affiliates or
any other Person; (x) maintaining its deposit and other bank accounts and
all of its assets separate from those of any other Person;
(xi) maintaining its financial records separate and apart from those of
any other Person; (xii) not suggesting in any way, within its financial
statements, that its assets are available to pay the claims of creditors of
Owner, its affiliates or any other Person; (xiii) compensating all its
employees, officers, consultants and agents for services provided to it by such
Persons out of its own funds; (xiv) maintaining office space separate and
apart from that of Owner, its affiliates and any other Person and a telephone
number separate and apart from that of Owner, its affiliates and any other
Person; (xv) conducting all oral and written communications, including,
without limitation, letters, invoices, purchase orders, contracts, statements,
and applications solely in its own name; (xvi) having separate stationery
from Owner, its affiliates or any other Person; (xvii) accounting for and
managing all of its liabilities separately from those of Owner, its affiliates
and any other Person; (xviii) allocating, on an arm’s-length basis, all
shared corporate operating services, leases and expenses, including those
associated with the services of shared consultants and agents and shared
computer and other office equipment and software; and otherwise maintaining an
arm’s-length relationship with each of Owner, its affiliates and any other
Person; (xix) refraining from filing or otherwise initiating or supporting
the filing of a motion in any bankruptcy or other insolvency proceeding
involving Owner to substantively consolidate Owner with an affiliate or any
other Person; (xx) remaining solvent and assuring adequate capitalization
for the business in which it is engaged; (xxi) conducting all of its
business (whether written or oral) solely in its own name so as not to mislead
others as to the identity of Owner or its affiliates; and (xxii) not
taking any Material Action without the affirmative vote of its Independent
Director.

SECTION 6.06.  Ownership by
Owner; Mergers.  Other than pursuant
to Section 6.10 hereof, Owner will not sell, assign, pledge or otherwise
transfer any of its interest in the QI. 
The QI will not merge or consolidate with or into any other Person
unless the QI complies with Section 8.04.

 24
 

SECTION 6.07.  Organizational
Documents.  The QI will not amend any
of its organizational documents, including its certificate of incorporation and
by-laws, unless (i) such amendment is approved by all of its directors,
including its Independent Director, (ii) prior to such amendment, the
Rating Agency Condition with respect to each Series of Notes Outstanding will
be met and (iii) in the case of its certificate of incorporation, the
amended certificate of incorporation provides that the QI will not take any
Material Action without the affirmative vote of its Independent Director.

SECTION 6.08.  No Other
Agreements.  The QI will not enter
into or be a party to any agreement or instrument other than this Agreement,
the Escrow Agreement and any documents and agreements incidental thereto or
entered into as contemplated herein.

SECTION 6.09.  Other Business.  The QI will not engage in any business or
enterprise or enter into any transaction other than the making of Exchanges
pursuant to this Agreement, the related exercise of its rights as Qualified
Intermediary hereunder, the incurrence and payment of ordinary course operating
expenses and other activities related to or incidental to either of the
foregoing.

SECTION 6.10.  QI Parent
Downgrade Event Sale.

(a)  If a QI Parent Downgrade
Event occurs, Hertz may deliver a written notice (a “Sale Notice”) to
Owner at any time after the occurrence of such QI Parent Downgrade Event. If
Hertz delivers a Sale Notice and does not deliver another written notice to the
Owner withdrawing such sale Notice before the Downgrade Sale is consummated,
then the Owner shall transfer all of the capital stock of the QI to such
purchaser as may be designated by Hertz in such Sale Notice (the “Downgrade
Sale”) on the date specified for such transfer in the Sale Notice, which
date shall not be less than five days (or such shorter period as may be agreed
upon by Hertz and Owner) after the delivery of such Sale Notice.  Any such purchaser shall not be Hertz or a
Disqualified Person.

(b)  In the event of a Downgrade
Sale, Owner shall:

(i) transfer
all of the capital stock of the QI to the purchaser designated in the related
Sale Notice for such consideration (which may be nominal) as may be designated
by Hertz in such Sale Notice;

(ii) execute
and deliver all documents, instruments and consents as may be specified by
Hertz as reasonably necessary or desirable to effectuate the Downgrade Sale;

(iii) make
representations and warranties as to its title to the capital stock of the QI
being sold, the absence of any liens thereon and its power, authority and right
to consummate the Downgrade Sale without contravention of law or contract;

(iv) make such
further representations and warranties that are reasonable, customary and
appropriate and that the purchaser of the capital stock of the QI reasonably
requests; and

 25
 

(v) be liable
for any breach of the representations and warranties made by it in connection
with such Downgrade Sale.

(c)  All expenses incurred by
Owner in connection with any Downgrade Sale shall be borne by the Owner.

(d)  Upon the consummation of a
Downgrade Sale, (i) the rights, duties and obligations of the transferring
Owner shall be assigned and delegated to the new Owner and the transferring
Owner shall be released from its obligations under this Agreement, except to
the extent such obligations relate to periods prior to the Downgrade Sale, and
(ii) the new Owner shall become a party to this Agreement pursuant to an
agreement in substantially the form of Exhibit A hereto (an “Accession
Agreement”).

SECTION 6.11.  Trademark
License.  (a)  Subject to the terms of this
Section 6.11, Hertz grants the QI a non-exclusive, royalty-free license to
use the service mark “Hertz”, as evidenced by Certificate of Registration
No. 0614123 (the “Licensed Trademark”) with respect only to the QI’s
service as Qualified Intermediary pursuant to this Agreement (the “Licensed
Services”), and in connection therewith, in the QI’s trade name and company
name.

(b)  The QI agrees to provide, at
Hertz’s request, specimens showing use of the Licensed Trademark with respect
to the Licensed Services for Hertz’s inspection and approval and as needed by
Hertz to file in the United States Patent and Trademark office evidencing use
of the Licensed Trademark in commerce by the QI.

(c)  The QI acknowledges that
Hertz owns the Licensed Trademark, and that it has no rights with respect
thereto other than the licenses set forth in this Section 6.11.  Any rights in the Licensed Trademark arising
from the use of the Licensed Trademark by the QI shall inure and accrue
exclusively to Hertz.

(d)  The QI shall only use the
Licensed Trademark in a manner previously approved by Hertz.

(e)  The QI agrees to provide the
Licensed Services in accordance with standards of quality approved by
Hertz.  Hertz’s designee shall have the
right, at all reasonable times, during normal business hours, to enter the QI’s
premises to inspect any documents or records relating to the Licensed Services,
for the purpose of enabling Hertz to assess whether the Licensed Services
comply with the standards of quality submitted or approved by Hertz.  If the Licensed Services supplied by the QI
do not conform with the standards of quality approved by Hertz in any respect,
Hertz shall so inform the QI in writing of such failure to conform, and the QI
shall immediately cease use of the Licensed Trademark.

(f)  The QI agrees to inform
Hertz of the use of any marks similar to the Licensed Trademark and any
potential infringements of the Licensed Trademark which come to its attention.

(g)  In the event the QI is named
as defendant in any action based on its use of the Licensed Trademark, the QI
agrees to immediately notify Hertz, and Hertz shall have the right to intervene
in any such action and to control and direct the defense thereof, including the
right to

 26
 

select defense
counsel, provided that in the event Hertz chooses to exercise control Hertz
agrees to reimburse the QI for the cost of the QI’s defense and to indemnify
the QI against all damages arising therefrom, provided that the QI has complied
with all its obligations under this Section 6.11 and has cooperated with
Hertz in the defense of such action.

(h)  Upon termination of this
Agreement, the QI agrees to discontinue all use of the Licensed Trademark in
any manner whatsoever, including use and registration of the Licensed Trademark
in the QI’s trade name and company name. 
Upon termination of this Agreement, all rights granted to the QI under
this Section 6.11 shall revert to Hertz.

SECTION 6.12.  Confidentiality.  (a) 
The QI shall keep confidential, and cause its affiliates and its and
their officers, directors, employees and advisors to keep confidential, all
information relating to each Legal Entity (the “Confidential Information”),
except as required by law or administrative process or as provided for in this
Agreement and except for information that is available to the public as of the
date of this Agreement or thereafter becomes available to the public other than
as a result of a breach of this Section 6.12.

(b)  Notwithstanding anything to
the contrary set forth in Section 6.12(a), (i) the QI may disclose any of the
Confidential Information provided by a Legal Entity to any bank or other
governmental regulatory authority having jurisdiction over the QI upon the
request of the regulatory authority without having to provide such Legal Entity
with notice of any kind and (ii) in the event that the QI is requested or
required (by oral questions, interrogatories, requests for information or
documents, subpoena, civil investigative demand or similar process) to disclose
any Confidential Information, it is agreed that the QI will, if reasonably
practicable and to the extent permitted by law, provide Hertz with prompt
notice of such request or requirement so that Hertz may seek an appropriate
protective order or waive compliance by the QI with the provisions of this Agreement,
and if, in the absence of such protective order or the receipt of such waiver
hereunder, the QI is nonetheless, in the opinion of the QI’s counsel, legally
required to disclose such Confidential Information or else stand liable for
contempt or suffer other censure or penalty, the QI may disclose such
information without liability hereunder, provided, however, that the QI shall
disclose only that portion of such Confidential Information which it is legally
required to disclose.

ARTICLE VII

Term And Compensation; Escrow Agreement Termination

SECTION 7.01.  Term.  (a) 
The term of this Agreement shall begin on December 21, 2005, and shall
continue for thirty-six (36) months from December 21, 2005.  This Agreement shall be automatically renewed
for successive thirty-six (36) month terms, unless the QI notifies each of the
Legal Entities, the Trustee and each Enhancement Provider (or, if there is an
agent for two or more Enhancement Providers, such agent) in writing at least
one-hundred-twenty (120) days prior to the end of a term of its desire to
terminate this Agreement.  In addition,
(i) a Legal Entity may terminate this Agreement at any time with respect
to such Legal Entity, by providing not less than sixty (60) days’ prior written
notice to the QI, the Trustee and each Enhancement Provider (or, if there is an
agent for two or more Enhancement Providers, such agent) and (ii) this
Agreement shall automatically terminate with respect to HVF (x) at 

 27
 

11:59 p.m.
on the 45th calendar day after the occurrence of a QI Parent Downgrade Event
that continues unremedied at such time (y) on the date of the occurrence
of an Amortization Event with respect to any Series of Notes or (z) the date of
the occurrence of an Event of Termination under the Purchase Agreement.  The date which is (x) the end of a
thirty-six (36) month term (as may be renewed), (y) sixty (60) days after
a Legal Entity’s notice as provided herein, solely with respect to such Legal
Entity, or (z) (i) the 45th calendar day following the occurrence of
a QI Parent Downgrade Event that continues unremedied at such time,
(ii) the date of the occurrence of an Amortization Event with respect to
any Series of Notes or (iii) the date of the occurrence of an Event of
Termination under the Purchase Agreement, solely with respect to HVF, shall be
called the “Termination Date”. 
Upon any such termination, (i) this Agreement shall remain in
effect with respect to Relinquished Property Proceeds relating to a sale to a
Buyer prior to the Termination Date and for which no Disbursement Occurrence
has taken place, (ii) any indemnities and obligations owing to the QI
under this Agreement as of the Termination Date shall survive until satisfied
or otherwise terminated and (iii) no further Relinquished Property Proceeds,
Qualified Earnings thereon or other amounts attributable to the transfer of an
HVF Vehicle or other HVF Vehicle Collateral shall be transferred from an HVF
Exchange Account to any Escrow Account, Joint Disbursement Account or any
account other than the Collection Account. 
Termination of this Agreement pursuant to this Section 7.01(a)
shall not affect any rights or obligations of the parties hereto under an
Exchange that has not yet been completed as of the Termination Date, and in the
event that this Agreement terminates with respect to any party hereto pursuant
to this Section 7.01(a), such party shall not take any action that causes
a pending Exchange not to qualify under Section 1031 of the Code or in a
manner that would violate Sections 1.1031(k)-1(g)(4)(ii) or (g)(6) of the
Treasury Regulations or Revenue Procedure 2003-39.  Subject to the restrictions above, upon the
Termination Date, the QI shall, at such time, and in satisfaction of the QI’s
remaining obligations under this Agreement, pay all funds in any Account to the
applicable Legal Entity or such Legal Entity’s designee or, in the case of
funds in an HVF Exchange Account or otherwise arising from or attributable to
the disposition of Vehicles owned by HVF, to the Collection Account.  The Servicer will provide notice of the
Termination Date to each Rating Agency.

(b)  Special Termination.  Notwithstanding the provisions of
Section 7.01(a), this Agreement shall automatically terminate at
11:59 p.m. on the 90th calendar day after the occurrence of a QI Parent
Downgrade Event that continues unremedied at such time.  The 90th calendar day following the
occurrence of a QI Parent Downgrade Event that continues unremedied at such
time shall be called the “Special Termination Date”.  Upon any such termination, (i) this
Agreement shall remain in effect with respect to Relinquished Property Proceeds
relating to a sale to a Buyer prior to the Special Termination Date and for
which no Disbursement Occurrence has taken place, (ii) any indemnities and
obligations owing to the QI under this Agreement as of the Termination Date
shall survive until satisfied or otherwise terminated, (iii) no further
Relinquished Property Proceeds, Qualified Earnings thereon or other amounts
attributable to the transfer of an HVF Vehicle or other HVF Vehicle Collateral
shall be transferred from an HVF Exchange Account to any Escrow Account, Joint
Disbursement Account or any account other than the Collection Account and (iv)
no further Relinquished Property Proceeds, Qualified Earnings thereon or other
amounts attributable to the transfer of a GE Financed Vehicle or any related
collateral shall be transferred from a Hertz GE Exchange Account to any Escrow
Account, Joint Disbursement Account or any account other than the GE Collateral
Account.  Termination of this Agreement
pursuant to this Section 7.01(b) shall not

 28
 

affect any
rights or obligations of the parties hereto under an Exchange that has not yet
been completed as of the Special Termination Date, and in the event that this
Agreement terminates pursuant to this Section 7.01(b), no party shall take any
action that causes a pending Exchange not to qualify under Section 1031 of the
Code or in a manner that would violate Sections 1.1031(k)-1(g)(4)(ii) or (g)(6)
of the Treasury Regulations or Revenue Procedure 2003-39.  Subject to the restrictions above, upon the
Special Termination Date, the QI shall, at such time, and in satisfaction of
the QI’s remaining obligations under this Agreement, pay all funds in any
Account to the applicable Legal Entity or such Legal Entity’s designee or, in
the case of funds in an HVF Exchange Account or otherwise arising from or
attributable to the disposition of Vehicles owned by HVF, to the Collection
Account or, in the case of funds in a Hertz GE Exchange Account or otherwise
arising from or attributable to the disposition of GE Financed Vehicles, to the
GE Collateral Account.  On the Special
Termination Date, the name of the QI shall be removed from the Joint Collection
Accounts.  The Servicer will provide
notice of the Special Termination Date to each Rating Agency.

SECTION 7.02.  Compensation.  The Legal Entities agree to pay the QI in a
timely manner after receipt of a quarterly invoice therefor and any reasonably
required supporting documentation, the fees and other amounts as set forth in Exhibit
A hereto.  If this Agreement is
terminated for any reason, the QI will continue to be compensated with respect
to all Exchanges being made by the QI until all such Exchanges are completed.

SECTION 7.03.  Escrow
Agreement Termination.  If
(i) the Legal Entities terminate the Escrow Agreement pursuant to Section
6.14 thereof or (ii) the Escrow Agent terminates the Escrow Agreement
pursuant to Section 6.10 thereof, and a new escrow holder is not appointed
prior to the termination of the Escrow Agreement, the QI shall, at such time,
pay all funds in any Account to the applicable Legal Entity or such Legal
Entity’s designee or, in the case of funds in an HVF Exchange Account or
otherwise arising from or attributable to the disposition of Vehicles owned by
HVF, to the Collection Account or, in the case of funds in a Hertz GE Exchange
Account or otherwise arising from or attributable to the disposition of GE
Financed Vehicles, to the GE Collateral Account.

ARTICLE VIII

Miscellaneous

SECTION 8.01.  Pending
Litigation.  If any party hereto
receives any written notice that there is, or may be, a pending or threatened
litigation against such party in any manner relating to this Agreement, the LKE
Program or such party’s ability to perform under this Agreement or that may
adversely affect any other party hereto, then the party receiving said notice
shall immediately notify the other parties hereto pursuant to Section 8.02
hereof and shall notify the Trustee at the address set forth in the Base
Indenture; provided that HVF upon obtaining knowledge, or receipt of
notice, of any such pending or threatened litigation shall also notify each
Enhancement Provider.

SECTION 8.02. 
Notices.  All notices,
requests, demands, waivers, consents, approvals or other communications
required or permitted hereunder will be in writing, will be deemed given when
actually received and will be given by personal delivery, by facsimile

 29
 

transmission with receipt acknowledged, by means of electronic mail, by
same day or overnight courier services or by registered or certified mail,
postage prepaid, return receipt requested, to the following addresses:

If to the QI or the Owner:

J.P. Morgan Property Exchange Inc.

1001 Hingham Street, Suite 300

Rockland, MA 02370

Attention:   William P. Lopriore, Jr.

Fax:  (781) 982-9558

If to Hertz, HGI, or HVF:

c/o The Hertz Corporation

225 Brae Boulevard

Park Ridge, NJ 07656

Attention:   Treasurer

Fax:  (201) 307-2476

with a copy to the
Administrator at:

The Hertz Corporation

225 Brae Boulevard

Park Ridge, NJ 07656

Attention:   Treasurer

Fax:  (201) 307-2476

If to Trustee:

BNY Midwest Trust Company

2 North LaSalle

Chicago, IL 60602

Attn: Corporate Trust Administrator-Structured Finance

Phone: (312) 827-8569

Fax: (312) 827-8562

If to the GE Collateral
Agent:

c/o GE Corporate
Financial Services

201 Merritt 7

Norwalk, CT 06856-5201

Attention: Operations Site Leader-2nd Floor

Tel: 203-956-4146

Fax: 203-229-5788

Notice of any change in any such address, facsimile
number or e-mail address will also be given in the manner set forth above.  Whenever the giving of notice is required,
the party entitled to receive such notice may waive the giving of such notice.

 30
 

SECTION 8.03.  Amendments.  This Agreement may be amended and supplemented
only by a written instrument duly executed by all the parties hereto upon
satisfaction of the Rating Agency Condition with respect to each Series of
Notes Outstanding; provided that an Accession Agreement may be entered into
pursuant to Section 6.10(d) subject only to the consent of Owner and each
Legal Entity.

SECTION 8.04.  Successors and
Assigns; No Third-Party Beneficiaries. 
This Agreement shall be binding upon and inure to the benefit of each
party and its successors in interest and permitted assigns.  Except as expressly otherwise allowed herein
(including Section 6.01(d)), no party may assign or otherwise transfer any
of its rights or delegate any of its duties or obligations under this Agreement
without the prior written consent of each other party, which consent shall not
be unreasonably withheld; provided, however, that no assignment
by the QI shall be effective without satisfaction of the Rating Agency
Condition with respect to each Series of Notes Outstanding; provided further,
however, that (1) each Legal Entity may pledge all of its right,
title and interest in this Agreement to the extent not otherwise prohibited by
the Related Documents and (2) any party hereto may assign (subject to the
Rating Agency Condition with respect to each Series of Notes Outstanding in the
case of the QI) this Agreement, without such written consent, to a successor or
surviving entity resulting from a merger or acquisition involving substantially
all of a party’s stock or assets; provided further that any assignment
by the QI or any transfer of any interest in this Agreement by the QI, whether
by merger or acquisition or otherwise, shall only be effective if (i) the
successor or surviving entity (x) is a bankruptcy-remote, special purpose
entity organized under the laws of any state of the United States, is not an
affiliate of Hertz, HVF or HGI and has organic documents that provide that it
will not take any Material Action without the affirmative vote of its
Independent Director and (y) expressly agrees in writing to abide by the
terms of this Agreement and the Escrow Agreement and (ii) HVF and Hertz
consent to such assignment or transfer. 
To secure the payment of the Note Obligations from time to time owing by
HVF under the Indenture, HVF has pledged and assigned to the Collateral Agent
for the benefit of the HVF Secured Parties a security interest in all of its
right, title and interest in, to and under this Agreement, and the QI hereby
consents to such assignment.  To secure
HGI’s obligations under the HGI Credit Facility and all other liabilities of
HGI from time to time owing by HGI to Hertz thereunder, HGI has pledged and
assigned, to the Collateral Agent, for the benefit of the HGI Secured Parties,
a security interest in all right, title and interest in, to and under this
Agreement and the QI hereby consents to such assignment.  To secure Hertz’s obligations under the GE
Credit Agreement, the GE Collateral Agreement and the other GE Loan Documents,
Hertz has pledged and assigned to the GE Collateral Agent for the secured
parties under the GE Collateral Agreement a security interest in all right,
title and interest in, to and under this Agreement insofar as it relates to GE
Financed Vehicles and the QI consents to such assignment.  Except as provided in this paragraph, nothing
contained in this Agreement is intended, or will be construed, to confer upon
or give to any Person, other than the parties hereto and their respective
successors and permitted assigns, any rights or remedies under or by reason of
this Agreement.

SECTION 8.05. 
Governing Law, Venue, Jury Trial Waiver, and Attorneys’ Fees.

(a)  GOVERNING LAW AND VENUE.  THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH AND BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES

 31
 

OF
THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.  VENUE SHALL BE IN ANY STATE OR FEDERAL COURT
WITHIN THE STATE OF NEW YORK.

(b)  JURY TRIAL WAIVER.  EACH LEGAL ENTITY AND THE QI HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES ITS RIGHT TO TRIAL BY JURY IN ANY LEGAL
ACTION OR PROCEEDING ARISING FROM THE SUBJECT MATTER OF THIS AGREEMENT,
INCLUDING ANY COUNTERCLAIM THERETO.

SECTION 8.06.  Indebtedness.  The QI shall not assume any secured loan or
other obligation on any Replacement Property or execute any promissory note or
other evidence of indebtedness in connection with the acquisition of any
Replacement Property, including any of the foregoing that would impose any
personal liability upon the QI for repayment of such obligation.  The QI shall not execute any agreement nor
participate in any transaction which, in the reasonable opinion of the QI or
its counsel, would require the QI to engage in any unlawful or fraudulent
action.

SECTION 8.07.  Strict
Performance.  The failure of any
party to insist upon strict performance of any of the terms or conditions of
this Agreement will not constitute a waiver of any of its rights hereunder, provided
that any provision may be waived by the party intended to benefit therefrom by
a written instrument signed by such party.

SECTION 8.08.  Severability;
Interpretation.  If any provision of
this Agreement is held illegal, invalid or unenforceable in a jurisdiction,
this Agreement will, in such circumstances, be deemed modified in such jurisdiction
to the extent necessary to render enforceable the provisions hereof, and such
illegality, invalidity or unenforceability will not affect any other provision
of this Agreement in any other jurisdiction. 
It is the intent of the parties hereto that this Agreement comply with
the requirements for like-kind exchanges pursuant to Section 1031 of the
Code and the regulations thereunder and for a like-kind exchange program
pursuant to Revenue Procedure 2003-39.  To the greatest extent possible, the
provisions of this Agreement shall be interpreted in a manner consistent with
such intent.

SECTION 8.09.  Dates,
Descriptions, Values, and Matching. 
Each Legal Entity shall be ultimately and solely responsible for the
accuracy of any transfer dates, the Relinquished Property and the Replacement
Property descriptions, the Relinquished Property and the Replacement Property
values and the Relinquished Property and the Replacement Property matching with
respect to each Exchange performed pursuant to its LKE Program.

SECTION 8.10.  Counterparts.  This Agreement may be executed in any number
of counterparts and any party hereto may execute any such counterpart, each of
which when executed and delivered will be deemed to be an original and all of
which counterparts when taken together will constitute but one and the same
instrument.  The execution of this
Agreement by any party hereto will not become effective until counterparts
hereof have been executed and delivered by each other party hereto.  It will not be necessary in making proof of
this Agreement or any counterpart hereof to produce or account for any other
counterparts.

 32
 

SECTION 8.11.  Entire
Agreement.  This Agreement, as
supplemented by the Escrow Agreement, constitutes the entire understanding and
agreement among the parties with respect to the subject matter contained herein
and supersedes and merges any prior understandings and agreements (whether
written or oral) respecting such subject matter.

SECTION 8.12.  Electronic
Signature.  In the satisfaction of
their respective obligations and the exercise of their respective rights under
this Agreement and any related documents and/or agreements, to include bills of
sale, each party hereto is, and hereby agrees to be, bound (as though duly
authorized, notarized, and sealed original signatures were affixed to a
document) by any evidence of consent, approval, authorization and/or agreement
such party transmits or causes to be transmitted by electronic means, including
but not limited to: downloading and/or transmitting of information via e-mail;
facsimile; and the internet or similar electronic transmission.

SECTION 8.13.  Acknowledgment
of Independent Relationship.  Each
Legal Entity and the QI mutually acknowledge and agree that, pursuant to this
Agreement, the QI will solely acquire Rights in contracts to both the
Relinquished Property and the Replacement Property in accordance with the
provisions of Section 1031 of the Code and the Treasury Regulations
thereunder and that legal title to the Relinquished Property will be
transferred to one or more Buyers and legal title to the Replacement Property
will be transferred to the applicable Legal Entity.  The QI and each Legal Entity desire to
maintain an independent relationship, therefore, the QI and each Legal Entity
hereby acknowledge that in engaging in the activities contemplated by this
Agreement, the QI is acting as a Qualified Intermediary.  In no event shall the QI or any of the QI’s
directors, officers, employees, agents or shareholders be deemed to be acting
as an agent of any Legal Entity (except as expressly provided in this Agreement
and the Treasury Regulations), nor shall the QI have any fiduciary relationship
to any Legal Entity.

SECTION 8.14.  Headings.  The headings in this Agreement are for
convenience of reference only and do not affect its interpretation.

SECTION 8.15.  Force Majeure.  No party to this Agreement is liable to any
other party for losses due to, or if it is unable to perform its obligations
under the terms of this Agreement if such inability to perform is caused by,
circumstances reasonably beyond a party’s control, such as natural disasters,
fire, floods, third party strikes, failure of public utilities or
telecommunications infrastructure or any other causes reasonably beyond its
control.

SECTION 8.16.  Consequential
Damages.  Notwithstanding anything to
the contrary in this Agreement, in no event shall the QI or any director,
officer, employee, member, shareholder or agent of the QI be liable for, and
each Legal Entity releases the QI and each director, officer, employee, member,
shareholder or agent of the QI from, any and all liability for special,
indirect, incidental or consequential damages of any kind whatsoever (including
lost profits) even if the QI or any director, officer, employee, member,
shareholder or agent of the QI is advised of such loss or damage and regardless
of the form of action.  The aforesaid is
not intended to and shall in no way diminish or bar Hertz’s obligation to
indemnify the QI Indemnitees for third party claims for such damages.

 33
 

SECTION 8.17.  Investment
Losses.  In no event shall the QI be
liable for, and each Legal Entity hereby releases the QI from, any and all
liability from any damages resulting from, any loss of principal, interest or
other earnings which may be incurred as a result of the investment of any funds
or in redeeming any investment held by the QI in any Account pursuant to the
terms of this Agreement or the Escrow Agreement.

SECTION 8.18.  Treasury
Regulations Disclosure Requirements. 
Each Legal Entity represents that it does not intend to treat any
transaction contemplated by this Agreement as a reportable transaction within
the meaning of Section 1.6011-4 of the Treasury Regulations, and without
limiting the foregoing, will fully comply with the filing and reporting
requirements applicable to like-kind exchanges, including any requirement in
any applicable regulations or forms.  In
the event that any Legal Entity determines to take any action inconsistent with
such intention, such Legal Entity will promptly notify the QI, and each Legal
Entity acknowledges that in this event any other party to this Agreement may
treat the transaction as subject to Section 301.6112-1 of the Treasury
Regulations, and maintain the investor list and other records required by such
Treasury Regulation.

SECTION 8.19.  No Petitions.  (a) 
Each Legal Entity hereby covenants and agrees that, prior to the date
which is one year and one day after the payment in full of all of the Notes and
all obligations of Hertz under the GE Credit Agreement, the GE Collateral
Agreement and the other GE Loan Documents, it will not institute against, or
join any other Person in instituting against, the QI, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings or other
similar proceeding under the laws of the United States or any state of the
United States.  In the event that any
Legal Entity takes action in violation of this Section 8.19(a), the QI
agrees, for the benefit of the HVF Secured Parties and the secured parties
under the GE Collateral Agreement, that it shall file an answer with the
bankruptcy court or otherwise properly contest the filing of such a petition by
any Legal Entity against the QI or the commencement of such action and raise
the defense that such Legal Entity has agreed in writing not to take such
action and should be estopped and precluded therefrom and such other defenses,
if any, as its counsel advises that it may assert.

(b)  The QI hereby covenants and
agrees that, prior to the date which is one year and one day after the payment
in full of all of the Notes, it will not institute against, or join any other
Person in instituting against, HVF, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings or other similar proceeding
under the laws of the United States or any state of the United States.  In the event that the QI takes action in
violation of this Section 8.19(b), HVF agrees, for the benefit of the HVF
Secured Parties, that it shall file an answer with the bankruptcy court or
otherwise properly contest the filing of such a petition by the QI against HVF
or the commencement of such action and raise the defense that the QI has agreed
in writing not to take such action and should be estopped and precluded therefrom
and such other defenses, if any, as its counsel advises that it may assert.

(c)  The provisions of this
Section 8.19 shall survive the termination of this Agreement.

SECTION 8.20.  Servicer.  The parties to this Agreement acknowledge and
agree that Hertz acts as Servicer of HVF and HGI pursuant to this Agreement,
and, in such capacity, as

 34
 

the agent of
HVF and HGI, for purposes of performing certain duties of HVF and HGI under
this Agreement.  The parties to this
Agreement acknowledge and agree that Hertz, as Servicer, may take any action to
be taken by HVF or HGI under this Agreement, subject to the assignment of HVF’s
or HGI’s interest hereunder to the Collateral Agent.

[signature page
follows]

 35
 

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

	
  

  	
  THE HERTZ CORPORATION,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
  /s/ Elyse
  Douglas

  
	
   

  	
   

  	
  Name: Elyse Douglas

  
	
   

  	
   

  	
  Title:  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HERTZ VEHICLE FINANCING LLC,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
  /s/ Elyse
  Douglas

  
	
   

  	
   

  	
  Name: Elyse Douglas

  
	
   

  	
   

  	
  Title: Vice President & Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HERTZ GENERAL INTEREST LLC,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
  /s/ Elyse
  Douglas

  
	
   

  	
   

  	
  Name: Elyse Douglas

  
	
   

  	
   

  	
  Title: Vice President & Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HERTZ CAR EXCHANGE INC.,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
  /s/ William P.
  Lopriore, Jr.

  
	
   

  	
   

  	
  Name: William P. Lopriore, Jr.

  
	
   

  	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  J.P. MORGAN PROPERTY HOLDINGS LLC,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
  /s/ William P.
  Lopriore, Jr.

  
	
   

  	
   

  	
  Name: William P. Lopriore, Jr.

  
	
   

  	
   

  	
  Title: Senior Vice President

  

 

 36

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