Document:

Guarantee and Collateral Agreement, dated as of April 19, 2006

     

    EXHIBIT
      10.3

    
 

    
      

      

    

    
       

      GUARANTEE
        AND COLLATERAL AGREEMENT

       

      made
        by

       

      AVIS
        BUDGET HOLDINGS, LLC,

       

      AVIS
        BUDGET CAR RENTAL, LLC

       

      and
        certain of its Subsidiaries

       

      in
        favor
        of

       

      JPMORGAN
        CHASE BANK, N.A.,

       

      as
        Administrative Agent

       

      Dated
        as
        of April 19, 2006 

       

      

      
        

        

      

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

     

     

    
      	 	 	 	 	
              Page 

            	 
	
              SECTION
                1.

            	 	
              DEFINED
                TERMS

            	 	
              1

            	 
	 	 	
              1.1 Definitions

            	 	
              1

            	 
	 	 	
              1.2 Other
                Definitional Provisions

            	 	
              4

            	 
	
              Section
                2.

            	 	
              BORROWER
                GUARANTEE

            	 	
              4

            	 
	 	 	
              2.1 Borrower
                Guarantee

            	 	
              5

            	 
	 	 	
              2.2 No
                Subrogation

            	 	
              5

            	 
	 	 	
              2.3 Amendments,
                etc. with respect to the Subsidiary Borrower Obligations

            	 	
              5

            	 
	 	 	
              2.4 Guarantee
                Absolute and Unconditional

            	 	
              6

            	 
	 	 	
              2.5 Reinstatement

            	 	
              6

            	 
	 	 	
              2.6 Payments

            	 	
              7

            	 
	
              Section
                3.

            	 	
              HOLDINGS
                AND SUBSIDIARY Guarantee

            	 	
              7

            	 
	 	 	
              3.1 Holdings
                and Subsidiary Guarantee

            	 	
              7

            	 
	 	 	
              3.2 Right
                of Contribution

            	 	
              7

            	 
	 	 	
              3.3 No
                Subrogation

            	 	
              8

            	 
	 	 	
              3.4 Amendments,
                etc. with respect to the Borrower Obligations

            	 	
              8

            	 
	 	 	
              3.5 Guarantees
                Absolute and Unconditional

            	 	
              8

            	 
	 	 	
              3.6 Reinstatement

            	 	
              9

            	 
	 	 	
              3.7 Payments

            	 	
              9

            	 
	
              Section
                4.

            	 	
              GRANT
                OF SECURITY INTEREST

            	 	
              9

            	 
	
              Section
                5.

            	 	
              REPRESENTATIONS
                AND WARRANTIES

            	 	 	 
	 	 	
              5.1 Title;
                No Other Liens

            	 	
              10

            	 
	 	 	
              5.2 Perfected
                Liens

            	 	
              10

            	 
	 	 	
              5.3 Jurisdiction
                of Organization; Chief Executive Office

            	 	
              11

            	 
	 	 	
              5.4 Pledged
                Stock

            	 	
              11

            	 
	 	 	
              5.5 Intellectual
                Property

            	 	
              11

            	 
	
              Section
                6.

            	 	
              COVENANTS

            	 	
              12

            	 
	 	 	
              6.1 Delivery
                of Instruments, Certificated Securities and Chattel Paper

            	 	
              12

            	 
	 	 	
              6.2 Payment
                of Obligations

            	 	
              12

            	 
	 	 	
              6.3 Maintenance
                of Perfected Security Interest; Further Documentation

            	 	
              13

            	 
	 	 	
              6.4 Changes
                in Name, etc

            	 	
              13

            	 
	 	 	
              6.5 Notices

            	 	
              13

            	 
	 	 	
              6.6 Pledged
                Stock

            	 	
              13

            	 
	 	 	
              6.7 Intellectual
                Property

            	 	
              14

            	 
	 	 	
              6.8 Foreign
                Perfection Matters

            	 	
              15

            	 
	
              Section
                7.

            	 	
              REMEDIAL
                PROVISIONS

            	 	
              16

            	 
	 	 	
              7.1 Pledged
                Stock

            	 	 	 
	 	 	
              7.2 Proceeds
                to be Turned Over To Administrative Agent

            	 	
              16

            	 
	 	 	
              7.3 Application
                of Proceeds

            	 	
              16

            	 
	 	 	
              7.4 Code
                and Other Remedies

            	 	
              17

            	 
	 	 	
              7.5 Registration
                Rights

            	 	
              17

            	 
	 	 	
              7.6 Deficiency

            	 	
              18

            	 

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

      
        	 	 	
                7.7 Grant
                  of Intellectual Property License

              	 	
                18

              	 
	
                Section
                  8.

              	 	
                THE
                  ADMINISTRATIVE AGENT

              	 	
                19

              	 
	 	 	
                8.1 Administrative
                  Agent’s Appointment as Attorney-in-Fact, etc

              	 	
                19

              	 
	 	 	
                8.2 Duty
                  of Administrative Agent

              	 	 	 
	 	 	
                8.3 Execution
                  of Financing Statements

              	 	 	 
	 	 	
                8.4 Authority
                  of Administrative Agent

              	 	
                21

              	 
	
                Section
                  9.

              	 	
                MISCELLANEOUS

              	 	
                21

              	 
	 	 	
                9.1 Amendments
                  in Writing

              	 	
                21

              	 
	 	 	
                9.2 Notices

              	 	
                21

              	 
	 	 	
                9.3 No
                  Waiver by Course of Conduct; Cumulative Remedies

              	 	
                21

              	 
	 	 	
                9.4 Enforcement
                  Expenses; Indemnification

              	 	
                22

              	 
	 	 	
                9.5 Successors
                  and Assigns

              	 	
                22

              	 
	 	 	
                9.6 Set-Off

              	 	
                22

              	 
	 	 	
                9.7 Counterparts

              	 	
                22

              	 
	 	 	
                9.8 Severability

              	 	
                23

              	 
	 	 	
                9.9 Section
                  Headings

              	 	
                23

              	 
	 	 	
                9.10 Integration

              	 	
                23

              	 
	 	 	
                9.11 GOVERNING
                  LAW

              	 	
                23

              	 
	 	 	
                9.12 Submission
                  To Jurisdiction; Waivers

              	 	
                23

              	 
	 	 	
                9.13 Acknowledgements

              	 	
                23

              	 
	 	 	
                9.14 Additional
                  Grantors

              	 	
                24

              	 
	 	 	
                9.15 Releases

              	 	
                24

              	 
	 	 	
                9.16 WAIVER
                  OF JURY TRIAL

              	 	
                24

              	 

      

      

       

      SCHEDULES

       

      
        
          	
                  Schedule
                    1

                	 	
                  Notice
                    Addresses

                	 
	
                  Schedule
                    2

                	 	
                  Pledged
                    Stock

                	 
	
                  Schedule
                    3

                	 	
                  Domestic
                    Perfection Matters

                	 
	
                  Schedule
                    4

                	 	
                  Foreign
                    Perfection Matters

                	 
	
                  Schedule
                    5

                	 	
                  Jurisdictions
                    of Organization and Chief Executive Offices

                	 
	
                  Schedule
                    6

                	 	
                  Intellectual
                    Property

                	 

        

      

      

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

       

      
 

      GUARANTEE
        AND COLLATERAL AGREEMENT

       

      GUARANTEE
        AND COLLATERAL AGREEMENT, dated as of April 19, 2006, made by each of the
        signatories hereto (together with any other entity that may become a party
        hereto as provided herein, the “Grantors”),
        in
        favor of JPMORGAN CHASE BANK, N.A., as Administrative Agent (in such capacity,
        the “Administrative
        Agent”)
        for
        the banks and other financial institutions or entities (the “Lenders”)
        from
        time to time parties to the Credit Agreement, dated as of April 19, 2006
        (as
        amended, supplemented or otherwise modified from time to time, the “Credit
        Agreement”),
        among
        AVIS BUDGET HOLDINGS, LLC (“Holdings”),
        AVIS
        BUDGET CAR RENTAL, LLC (the “Borrower”),
        the
        Subsidiary Borrowers (as defined in the Credit Agreement) from time to time
        parties to the Credit Agreement, DEUTSCHE BANK SECURITIES INC., as Syndication
        Agent, BANK
        OF
        AMERICA, N.A., CALYON NEW YORK BRANCH and
        CITICORP
        USA, INC., as
        Documentation Agents, WACHOVIA
        BANK, NATIONAL ASSOCIATION,
        as
        Co-Documentation Agent, the Lenders and the Administrative Agent.

       

      W I T N E S S E T H:

       

      WHEREAS,
        pursuant to the Credit Agreement, the Lenders have severally agreed to make
        extensions of credit to the Borrower and the Subsidiary Borrowers upon the
        terms
        and subject to the conditions set forth therein;

       

      WHEREAS,
        the Borrower and each Subsidiary Borrower is a member of an affiliated group
        of
        companies that includes each other Grantor;

       

      WHEREAS,
        the proceeds of the extensions of credit under the Credit Agreement will
        be used
        in part to enable the Borrower and each Subsidiary Borrower to make valuable
        transfers to one or more of the other Grantors in connection with the operation
        of their respective businesses;

       

      WHEREAS,
        the Borrower, each Subsidiary Borrower and the other Grantors will derive
        substantial direct and indirect benefit from the making of the extensions
        of
        credit under the Credit Agreement; and

       

      WHEREAS,
        it is a condition precedent to the obligation of the Lenders to make their
        respective extensions of credit to the Borrower and any Subsidiary Borrower
        under the Credit Agreement that the Grantors shall have executed and delivered
        this Agreement to the Administrative Agent for the ratable benefit of the
        Secured Parties;

       

      NOW,
        THEREFORE, in consideration of the premises and to induce the Administrative
        Agent and the Lenders to enter into the Credit Agreement and to induce the
        Lenders to make their respective extensions of credit to the Borrower and
        each
        Subsidiary Borrower thereunder, each Grantor hereby agrees with the
        Administrative Agent, for the ratable benefit of the Secured Parties, as
        follows:

       

       

      SECTION
        1.  DEFINED
        TERMS

       

      1.1  Definitions.
        (a) 
        Unless
        otherwise defined herein, terms defined in the Credit Agreement and used
        herein
        shall have the meanings given to them in the Credit Agreement, and the following
        terms are used herein as defined in Article 9 of the New York UCC: Certificated
        Security, Chattel Paper, General Intangibles, Instruments and Supporting
        Obligations.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (b)  The
        following terms shall have the following meanings:

       

      “Agreement”:
        this
        Guarantee and Collateral Agreement, as the same may be amended, supplemented
        or
        otherwise modified from time to time.

       

      “Borrower
        Obligations”:
        the
        collective reference to the unpaid principal of and interest on the Loans
        and
        Reimbursement Obligations and all other obligations and liabilities of the
        Borrower (including, without limitation, interest accruing at the then
        applicable rate provided in the Credit Agreement after the maturity of the
        Loans
        and Reimbursement Obligations and interest accruing at the then applicable
        rate
        provided in the Credit Agreement after the filing of any petition in bankruptcy,
        or the commencement of any insolvency, reorganization or like proceeding,
        relating to the Borrower, whether or not a claim for post-filing or
        post-petition interest is allowed in such proceeding) to the Administrative
        Agent or any Lender (or, in the case of any Specified Swap Agreement, any
        Affiliate of any Lender), whether direct or indirect, absolute or contingent,
        due or to become due, or now existing or hereafter incurred, which may arise
        under, out of, or in connection with, the Credit Agreement, this Agreement
        (including, without limitation, the Borrower Guarantor Obligations), the
        other
        Loan Documents, any Letter of Credit, any Specified Swap Agreement or any
        other
        document made, delivered or given in connection with any of the foregoing,
        in
        each case whether on account of principal, interest, reimbursement obligations,
        swap coupon or termination payments, fees or indemnities or reasonable
        out-of-pocket costs or expenses (including, without limitation, all reasonable
        out-of-pocket fees and disbursements of counsel to the Administrative Agent
        or
        to the Lenders that are required to be paid by the Borrower pursuant to the
        terms of any of the foregoing agreements).

       

      “Borrower
        Guarantor Obligations”:
        without duplicating any Borrower Obligations, all obligations and liabilities
        of
        the Borrower described in Section 2 of this Agreement.

       

      “Borrower
        Termination Event”:
        as
        defined in Section 3.1(d).

       

      “Collateralized”:
        secured by cash collateral arrangements and/or backstop letters of credit
        entered into on terms and in amounts reasonably satisfactory to the
        Administrative Agent and the relevant Issuing Lender.

       

      “Collateral”:
        as
        defined in Section 4.

       

      “Collateral
        Account”:
        any
        collateral account established by the Administrative Agent as provided in
        Section 7.2.

       

      “Copyright
        Licenses”:
        any
        written or oral agreement naming any Grantor as licensor or licensee (including,
        without limitation, those listed in Schedule 6), granting any right under
        any
        Copyright, including, without limitation, the grant of rights to manufacture,
        distribute, exploit and sell Copyrighted materials.

       

      “Copyrights”:
        (i)
        all copyrights arising under the laws of the United States, any other country
        or
        any political subdivision thereof, whether registered or unregistered and
        whether published or unpublished, all registrations, applications and recordings
        thereof in the United States Copyright Office and any other copyright registry
        office (including, without limitation, those listed in Schedule 6), and all
        applications in connection therewith, including, without limitation, all
        registrations, recordings and applications in the United States Copyright
        Office, and (ii) the right to obtain all renewals thereof.

       

      “Foreign
        Subsidiary Voting Stock”:
        the
        voting Capital Stock of any first tier Foreign Subsidiary.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Grantor”:
        as
        defined in the preamble hereto.

       

      “Guarantor
        Obligations”:
        with
        respect to any Guarantor, without duplicating any Subsidiary Borrower
        Obligations, all obligations and liabilities of such Guarantor described
        in
        Section 3 of this Agreement.

       

      “Guarantors”:
        the
        collective reference to each Grantor other than the Borrower. For the avoidance
        of doubt, notwithstanding any other provision of this Agreement, the parties
        hereto expressly agree that no Excluded Subsidiary, Foreign Subsidiary or
        Securitization Entity shall be a Guarantor.

       

      “Intellectual
        Property”:
        the
        collective reference to all rights, priorities and privileges with respect
        to
        intellectual property, whether arising under United States, multinational
        or
        foreign laws or otherwise, including, without limitation, the Copyrights,
        the
        Copyright Licenses, the Patents, the Patent Licenses, the Trademarks, the
        Trademark Licenses, trade secrets, know-how, and other confidential information,
        and all rights to sue at law or in equity for any infringement or other
        impairment thereof, including the right to receive all proceeds and damages
        therefrom.

       

      “Issuers”:
        the
        collective reference to each issuer of any Pledged Stock.

       

      “New
        York UCC”:
        the
        Uniform Commercial Code as from time to time in effect in the State of New
        York.

       

      “Obligations”:
        (i) in
        the case of the Borrower, the Borrower Obligations and the Borrower Guarantor
        Obligations, (ii) in the case of each Guarantor which is also a Subsidiary
        Borrower, its Subsidiary Borrower Obligations, and (iii) in the case of each
        Guarantor (whether or not a Subsidiary Borrower), its Guarantor
        Obligations.

       

      “Patents”:
        (i)
        all letters patent of the United States, any other country or any political
        subdivision thereof, all reissues and extensions thereof, including, without
        limitation, any of the foregoing referred to in Schedule
        6,
        (ii)
        all applications for letters patent of the United States or any other country
        and all divisions, continuations and continuations-in-part thereof, including,
        without limitation, any of the foregoing referred to in Schedule
        6,
        and
        (iii) all rights to obtain any reissues or extensions of the foregoing.

       

      “Patent
        License”:
        all
        agreements, whether written or oral, providing for the grant by or to any
        Grantor of any right to manufacture, use or sell any invention covered in
        whole
        or in part by a Patent, including, without limitation, any of the foregoing
        listed on Schedule
        6.

       

      “Pledged
        Stock”:
        the
        shares of Capital Stock listed on Schedule
        2,
        together with any other shares, stock certificates, options, interests or
        rights
        of any nature whatsoever in respect of the Capital Stock of any Subsidiary
        of
        the Borrower (other than any Excluded Subsidiary or any Securitization Entity)
        that may be issued or granted to, or held by, any Grantor while this Agreement
        is in effect; provided
        that in
        no event shall Pledged Stock or Collateral include more than 66% of the total
        outstanding Foreign Subsidiary Voting Stock of any Foreign
        Subsidiary.

       

      “Proceeds”:
        all
“proceeds” as such term is defined in Section 9-102(a)(64) of the New York UCC
        and, in any event, shall include, without limitation, all dividends or other
        income from the Pledged Stock, collections thereon or distributions or payments
        with respect thereto.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Secured
        Parties”:
        the
        collective reference to the Administrative Agent, the Lenders and any affiliate
        of any Lender to which Borrower Obligations or Guarantor Obligations, as
        applicable, are owed.

       

      “Securities
        Act”:
        the
        Securities Act of 1933, as amended.

       

      “Subsidiary
        Borrower Obligations”:
        with
        respect to each Subsidiary Borrower, without duplicating any Guarantor
        Obligations, the collective reference to the unpaid principal of and interest
        on
        the Loans and all other obligations and liabilities of such Subsidiary Borrower
        (including, without limitation, interest accruing at the then applicable
        rate
        provided in the Credit Agreement after the maturity of the Loans and interest
        accruing at the then applicable rate provided in the Credit Agreement after
        the
        filing of any petition in bankruptcy, or the commencement of any insolvency,
        reorganization or like proceeding, relating to such Subsidiary Borrower,
        whether
        or not a claim for post-filing or post-petition interest is allowed in such
        proceeding) to the Administrative Agent or any Lender (or, in the case of
        any
        Specified Swap Agreement, any Affiliate of any Lender), whether direct or
        indirect, absolute or contingent, due or to become due, or now existing or
        hereafter incurred, which may arise under, out of, or in connection with,
        the
        Credit Agreement, this Agreement, the other Loan Documents, any Letter of
        Credit, any Specified Swap Agreement or any other document made, delivered
        or
        given in connection with any of the foregoing, in each case whether on account
        of principal, interest, reimbursement obligations, swap coupon or termination
        payments, fees or indemnities or reasonable out-of-pocket costs or expenses
        (including, without limitation, all reasonable out-of-pocket fees and
        disbursements of counsel to the Administrative Agent or to the Lenders that
        are
        required to be paid by such Subsidiary Borrower pursuant to the terms of
        any of
        the foregoing agreements).

       

      “Subsidiary
        Borrower Termination Event”:
        as
        defined in Section 2.1(d).

       

      “Trademarks”:
        (i)
        all trademarks, trade names, corporate names, company names, business names,
        domain names, fictitious business names, trade styles, service marks, logos
        and
        other indicators of the source of goods or services, and all goodwill associated
        therewith, now existing or hereafter adopted or acquired, all registrations
        and
        recordings thereof, and all applications in connection therewith, whether
        in the
        United States Patent and Trademark Office or in any similar office or agency
        of
        the United States, any State thereof or any other country or any political
        subdivision thereof, or otherwise, and all common-law rights therein, including,
        without limitation, any of the foregoing listed on Schedule
        6,
        and
        (ii) the right to obtain all renewals thereof.

       

      “Trademark
        License”:
        any
        agreement, whether written or oral, providing for the grant by or to any
        Grantor
        of any right to use any Trademark, including, without limitation, any of
        the
        foregoing referred to in Schedule
        6.

       

      1.2  Other
        Definitional Provisions.
        (a)
        The
        words “hereof,” “herein”, “hereto” and “hereunder” and words of similar import
        when used in this Agreement shall refer to this Agreement as a whole and
        not to
        any particular provision of this Agreement, and Section and Schedule references
        are to this Agreement unless otherwise specified.

       

      (b)  The
        meanings given to terms defined herein shall be equally applicable to both
        the
        singular and plural forms of such terms.

       

      (c)  Where
        the
        context requires, terms relating to the Collateral or any part thereof, when
        used in relation to a Grantor, shall refer to such Grantor’s Collateral or the
        relevant part thereof.

       

       

      SECTION
        2.  BORROWER
        GUARANTEE

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      2.1  Borrower
        Guarantee.
        (a)
        The
        Borrower hereby, unconditionally and irrevocably, guarantees to the
        Administrative Agent, for the ratable benefit of the Secured Parties and
        their
        respective successors, indorsees, transferees and assigns, the prompt and
        complete payment and performance by each Subsidiary Borrower when due (whether
        at the stated maturity, by acceleration or otherwise) of its Subsidiary Borrower
        Obligations. 

       

      (b)  Anything
        herein or in any other Loan Document to the contrary notwithstanding, the
        maximum liability of the Borrower hereunder and under the other Loan Documents
        shall in no event exceed the amount which can be guaranteed by the Borrower
        under applicable federal and state laws relating to the insolvency of debtors
        (after giving effect to the right of contribution established in Section
        2.2).

       

      (c)  The
        guarantee contained in this Section 2 shall remain in full force and effect
        until all the Subsidiary Borrower Obligations shall have been satisfied by
        payment in full, each Letter of Credit shall have terminated, expired or
        been
        Collateralized and the Commitments shall have been terminated (all of the
        foregoing conditions together, the “Subsidary
        Borrower Termination Event”),
        notwithstanding that from time to time during the term of the Credit Agreement
        each Subsidiary Borrower may be free from any Subsidiary Borrower Obligations.
        

       

      (d)  No
        payment made by any Subsidiary Borrower, any of the other Guarantors, any
        other
        guarantor or any other Person or received or collected by the Administrative
        Agent or any Lender from any Subsidiary Borrower, any of the other Guarantors,
        any other guarantor or any other Person by virtue of any action or proceeding
        or
        any set-off or appropriation or application at any time or from time to time
        in
        reduction of or in payment of the Subsidiary Borrower Obligations shall be
        deemed to modify, reduce, release or otherwise affect the liability of the
        Borrower hereunder which shall, notwithstanding any such payment (other than
        any
        payment made by the Borrower in respect of the Subsidiary Borrower Obligations
        or any payment received or collected from the Borrower in respect of the
        Subsidiary Borrower Obligations), remain liable for the Subsidiary Borrower
        Obligations up to the maximum liability of the Borrower hereunder until the
        occurrence of the Subsidiary Borrower Termination Event.

       

      2.2  No
        Subrogation.
        Notwithstanding any payment or payments made by the Borrower hereunder, or
        any
        set-off or application of funds of the Borrower by the Administrative Agent
        or
        any Lender, the Borrower shall not be entitled to be subrogated to any of
        the
        rights of the Administrative Agent or any Lender against the Subsidiary
        Borrowers or against any collateral security or guarantee or right of offset
        held by the Administrative Agent or any Lender for the payment of the Subsidiary
        Borrower Obligations, nor shall the Borrower seek or be entitled to seek
        any
        contribution or reimbursement from the Subsidiary Borrowers in respect of
        payments made by the Borrower hereunder, until the Subsidiary Borrower
        Termination Event. If any amount shall be paid to the Borrower on account
        of
        such subrogation rights at any time before the Subsidiary Borrower Termination
        Event, such amount shall be held by the Borrower in trust for the Administrative
        Agent and the Lenders, segregated from other funds of the Borrower, and shall,
        forthwith upon receipt by the Borrower, be turned over to the Administrative
        Agent in the exact form received by the Borrower (duly indorsed by the Borrower
        to the Administrative Agent, if required), to be applied against the Subsidiary
        Borrower Obligations, whether matured or unmatured, in such order as the
        Administrative Agent may determine.

       

      2.3  Amendments,
        etc. with respect to the Subsidiary Borrower Obligations.
        The
        Borrower shall remain obligated hereunder notwithstanding that, without any
        reservation of rights against the Borrower and without notice to or further
        assent by the Borrower, any demand for payment of any of the Subsidiary Borrower
        Obligations made by the Administrative Agent or any Lender may be rescinded
        by
        the Administrative Agent or such Lender and any of the Subsidiary Borrower
        Obligations continued, and the Subsidiary Borrower Obligations, or the liability
        of any other Person upon or for any part thereof, or 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      any
        collateral security or guarantee therefor or right of offset with respect
        thereto, may, from time to time, in whole or in part, be renewed, extended,
        amended, modified, accelerated, compromised, waived, surrendered or released
        by
        the Administrative Agent or any Lender, and the Credit Agreement and the
        other
        Loan Documents and any other documents executed and delivered in connection
        therewith may be amended, modified, supplemented or terminated, in whole
        or in
        part, as the Administrative Agent (or the Required Lenders or all Lenders,
        as
        the case may be) may deem advisable from time to time, and any collateral
        security, guarantee or right of offset at any time held by the Administrative
        Agent or any Lender for the payment of the Subsidiary Borrower Obligations
        may
        be sold, exchanged, waived, surrendered or released. Neither the Administrative
        Agent nor any Lender shall have any obligation to protect, secure, perfect
        or
        insure any Lien at any time held by it as security for the Subsidiary Borrower
        Obligations or for the guarantee contained in this Section 2 or any property
        subject thereto. 

       

      2.4  Guarantee
        Absolute and Unconditional.
        The
        Borrower waives any and all notice of the creation, renewal, extension or
        accrual of any of the Subsidiary Borrower Obligations and notice of or proof
        of
        reliance by the Administrative Agent or any Lender upon the guarantee contained
        in this Section 2 or acceptance of the guarantee contained in this Section
        2;
        the Subsidiary Borrower Obligations, and any of them, shall conclusively
        be
        deemed to have been created, contracted or incurred, or renewed, extended,
        amended or waived, in reliance upon the guarantee contained in this Section
        2;
        and all dealings between the Borrower and the Subsidiary Borrowers, on the
        one
        hand, and the Administrative Agent and the Lenders, on the other hand, likewise
        shall be conclusively presumed to have been had or consummated in reliance
        upon
        the guarantee contained in this Section 2. The Borrower waives diligence,
        presentment, protest, demand for payment and notice of default or nonpayment
        to
        or upon the Borrower or the applicable Subsidiary Borrower with respect to
        the
        Subsidiary Borrower Obligations. The Borrower understands and agrees that
        the
        guarantee contained in this Section 2 shall be construed as a continuing,
        absolute and unconditional guarantee of payment (to the extent permitted
        by
        applicable law) without regard to (a) the validity or enforceability of the
        Credit Agreement or any other Loan Document, any of the Subsidiary Borrower
        Obligations or any other collateral security therefor or guarantee or right
        of
        offset with respect thereto at any time or from time to time held by the
        Administrative Agent or any Lender, (b) any defense, set-off or counterclaim
        (other than a defense of payment or performance) which may at any time be
        available to or be asserted by any Subsidiary Borrower or any other Person
        against the Administrative Agent or any Lender, or (c) any other circumstance
        whatsoever (with or without notice to or knowledge of the Borrower or any
        Subsidiary Borrower) which constitutes, or might be construed to constitute,
        an
        equitable or legal discharge of the Subsidiary Borrowers for the Subsidiary
        Borrower Obligations, or of the Borrower under the guarantee contained in
        this
        Section 2, in bankruptcy or in any other instance. When making any demand
        hereunder or otherwise pursuing its rights and remedies hereunder against
        the
        Borrower, the Administrative Agent or any Lender may, but shall be under
        no
        obligation to, make a similar demand on or otherwise pursue such rights and
        remedies as it may have against the Subsidiary Borrowers or any other Person
        or
        against any collateral security or guarantee for the Subsidiary Borrower
        Obligations or any right of offset with respect thereto, and any failure
        by the
        Administrative Agent or any Lender to make any such demand, to pursue such
        other
        rights or remedies or to collect any payments from the Borrower, any Subsidiary
        Borrower, or any other Person or to realize upon any such collateral security
        or
        guarantee or to exercise any such right of offset, or any release of the
        Borrower, any Subsidiary Borrower or any other Person or any such collateral
        security, guarantee or right of offset, shall not relieve the Borrower of
        any
        obligation or liability hereunder, and shall not impair or affect the rights
        and
        remedies, whether express, implied or available as a matter of law, of the
        Administrative Agent or any Lender against the Borrower. For the purposes
        hereof, “demand” shall include the commencement and continuance of any legal
        proceedings.

       

      2.5  Reinstatement.
        The
        guarantee contained in this Section 2 shall continue to be effective, or
        be
        reinstated, as the case may be, if at any time payment, or any part thereof,
        of
        any of the Subsidiary Borrower Obligations is rescinded or must otherwise
        be
        restored or returned by the Administrative Agent 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      or
        any
        Lender upon the insolvency, bankruptcy, dissolution, liquidation or
        reorganization of the Borrower, any Subsidiary Borrower or any other Guarantor,
        or upon or as a result of the appointment of a receiver, intervenor or
        conservator of, or trustee or similar officer for, the Borrower, any Subsidiary
        Borrower or any other Guarantor or any substantial part of its property,
        or
        otherwise, all as though such payments had not been made.

       

      2.6  Payments.
        The
        Borrower hereby guarantees that payments hereunder will be paid to the
        Administrative Agent without set-off or counterclaim in Dollars at the Funding
        Office.

       

       

      SECTION
        3.  HOLDINGS
        AND SUBSIDIARY GUARANTEE

       

      3.1  Holdings
        and Subsidiary Guarantee.
        (a)
        Each of
        the Guarantors hereby, jointly and severally, unconditionally and irrevocably,
        guarantees to the Administrative Agent, for the ratable benefit of the Secured
        Parties and their respective successors, indorsees, transferees and assigns,
        the
        prompt and complete payment and performance by the Borrower when due (whether
        at
        the stated maturity, by acceleration or otherwise) of the Borrower Obligations.
        

       

      (b)  Anything
        herein or in any other Loan Document to the contrary notwithstanding, the
        maximum liability of each Guarantor hereunder and under the other Loan Documents
        shall in no event exceed the amount which can be guaranteed by such Guarantor
        under applicable federal and state laws relating to the insolvency of debtors
        (after giving effect to the right of contribution established in Section
        3.2).

       

      (c)  Each
        Guarantor agrees that the Borrower Obligations and the Borrower Guarantor
        Obligations, either solely or collectively, may at any time and from time
        to
        time exceed the amount of the liability of such Guarantor hereunder without
        impairing the guarantee contained in this Section 3 or affecting the rights
        and
        remedies of the Administrative Agent or any Lender hereunder. 

       

      (d)  The
        guarantee contained in this Section 3 shall remain in full force and effect
        until all the Borrower Obligations shall have been satisfied by payment in
        full,
        each Letter of Credit shall have terminated, expired or been Collateralized,
        and
        the Commitments shall have been terminated (all of the foregoing conditions
        together, the “Borrower
        Termination Event”),
        notwithstanding that from time to time during the term of the Credit Agreement
        the Borrower may be free from any Borrower Obligations.

       

      (e)  No
        payment made by the Borrower, any of the Guarantors, any other guarantor
        or any
        other Person or received or collected by the Administrative Agent or any
        Lender
        from the Borrower, any of the Guarantors, any other guarantor or any other
        Person by virtue of any action or proceeding or any set-off or appropriation
        or
        application at any time or from time to time in reduction of or in payment
        of
        the Borrower Obligations shall be deemed to modify, reduce, release or otherwise
        affect the liability of any Guarantor hereunder which shall, notwithstanding
        any
        such payment (other than any payment made by such Guarantor in respect of
        the
        Borrower Obligations or any payment received or collected from such Guarantor
        in
        respect of the Borrower Obligations), remain liable for the Borrower Obligations
        up to the maximum liability of such Guarantor hereunder until the occurrence
        of the Borrower Termination Event.

       

      3.2  Right
        of Contribution.
        Each
        Guarantor hereby agrees that to the extent that a Guarantor shall have paid
        more
        than its proportionate share of any payment made hereunder, such Guarantor
        shall
        be entitled to seek and receive contribution from and against any other
        Guarantor hereunder which has not paid its proportionate share of such payment.
        Each Guarantor’s right of contribution shall be subject to the terms and
        conditions of Section 3.3. The provisions of this Section 3.2 shall in no
        respect limit the obligations and liabilities of any Guarantor to the
        Administrative Agent and the Lenders, and each 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Guarantor
        shall remain liable to the Administrative Agent and the Lenders for the full
        amount guaranteed by such Guarantor hereunder.

       

      3.3  No
        Subrogation.
        Notwithstanding any payment made by any Guarantor hereunder or any set-off
        or
        application of funds of any Guarantor by the Administrative Agent or any
        Lender,
        no Guarantor shall be entitled to be subrogated to any of the rights of the
        Administrative Agent or any Lender against the Borrower or any other Guarantor
        or any collateral security or guarantee or right of offset held by the
        Administrative Agent or any Lender for the payment of the Borrower Obligations
        or the Borrower Guarantor Obligations, nor shall any Guarantor seek or be
        entitled to seek any contribution or reimbursement from the Borrower or any
        other Guarantor in respect of payments made by such Guarantor hereunder,
        until
        the occurrence of the Borrower Termination Event. If any amount shall be
        paid to
        any Guarantor on account of such subrogation rights at any time before the
        occurrence of the Borrower Termination Event, such amount shall be held by
        such
        Guarantor in trust for the Administrative Agent and the Lenders, segregated
        from
        other funds of such Guarantor, and shall, forthwith upon receipt by such
        Guarantor, be turned over to the Administrative Agent in the exact form received
        by such Guarantor (duly indorsed by such Guarantor to the Administrative
        Agent,
        if required), to be applied against the Borrower Obligations, whether matured
        or
        unmatured, in such order as the Administrative Agent may determine.

       

      3.4  Amendments,
        etc. with respect to the Borrower Obligations.
        Each
        Guarantor shall remain obligated hereunder notwithstanding that, without
        any
        reservation of rights against any Guarantor and without notice to or further
        assent by any Guarantor, any demand for payment of any of the Borrower
        Obligations made by the Administrative Agent or any Lender may be rescinded
        by
        the Administrative Agent or such Lender and any of the Borrower Obligations
        continued, and the Borrower Obligations or any collateral security or guarantee
        therefor or right of offset with respect thereto, may, from time to time,
        in
        whole or in part, be renewed, extended, amended, modified, accelerated,
        compromised, waived, surrendered or released by the Administrative Agent
        or any
        Lender, and the Credit Agreement and the other Loan Documents and any other
        documents executed and delivered in connection therewith may be amended,
        modified, supplemented or terminated, in whole or in part, as the Administrative
        Agent (or the Required Lenders or all Lenders, as the case may be) may deem
        advisable from time to time, and any collateral security, guarantee or right
        of
        offset at any time held by the Administrative Agent or any Lender for the
        payment of the Borrower Obligations may be sold, exchanged, waived, surrendered
        or released. Neither the Administrative Agent nor any Lender shall have any
        obligation to protect, secure, perfect or insure any Lien at any time held
        by it
        as security for the Borrower Obligations or the Borrower Guarantor Obligations
        or for the guarantee contained in this Section 3 or any property subject
        thereto. 

       

      3.5  Guarantees
        Absolute and Unconditional.
        Each
        Guarantor waives any and all notice of the creation, renewal, extension or
        accrual of any of the Borrower Obligations and notice of or proof of reliance
        by
        the Administrative Agent or any Lender upon the guarantee contained in this
        Section 3 or acceptance of the guarantee contained in this Section 3; the
        Borrower Obligations shall conclusively be deemed to have been created,
        contracted or incurred, or renewed, extended, amended or waived, in reliance
        upon the guarantee contained in this Section 3; and all dealings between
        the
        Borrower and any of the Guarantors, on the one hand, and the Administrative
        Agent and the Lenders, on the other hand, likewise shall be conclusively
        presumed to have been had or consummated in reliance upon the guarantee
        contained in this Section 3. Each Guarantor waives diligence, presentment,
        protest, demand for payment and notice of default or nonpayment to or upon
        the
        Borrower or any of the Guarantors with respect to the Borrower Obligations
        and
        the Borrower Guarantor Obligations. Each Guarantor understands and agrees
        that
        the guarantee contained in this Section 3 shall be construed as a continuing,
        absolute and unconditional guarantee of payment (to the extent permitted
        by
        applicable law) without regard to (a) the validity or enforceability of the
        Credit Agreement or any other Loan Document, any of the Borrower Obligations
        or
        the Borrower Guarantor Obligations or any other collateral security therefor
        or
        guarantee or right of offset with respect thereto at any time or from time
        to
        time held by the Administrative Agent or 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      any
        Lender, (b) any defense, set-off or counterclaim (other than a defense of
        payment or performance) which may at any time be available to or be asserted
        by
        the Borrower or any other Person against the Administrative Agent or any
        Lender,
        or (c) any other circumstance whatsoever (with or without notice to or knowledge
        of the Borrower or such Guarantor) which constitutes, or might be construed
        to
        constitute, an equitable or legal discharge of the Borrower for the Borrower
        Obligations, or of such Guarantor under the guarantee contained in this Section
        3, in bankruptcy or in any other instance. When making any demand hereunder
        or
        otherwise pursuing its rights and remedies hereunder against any Guarantor,
        the
        Administrative Agent or any Lender may, but shall be under no obligation
        to,
        make a similar demand on or otherwise pursue such rights and remedies as
        it may
        have against the Borrower, any other Guarantor or any other Person or against
        any collateral security or guarantee for the Borrower Obligations or the
        Borrower Guarantor Obligations or any right of offset with respect thereto,
        and
        any failure by the Administrative Agent or any Lender to make any such demand,
        to pursue such other rights or remedies or to collect any payments from the
        Borrower, any other Guarantor or any other Person or to realize upon any
        such
        collateral security or guarantee or to exercise any such right of offset,
        or any
        release of the Borrower, any other Guarantor or any other Person or any such
        collateral security, guarantee or right of offset, shall not relieve any
        Guarantor of any obligation or liability hereunder, and shall not impair
        or
        affect the rights and remedies, whether express, implied or available as
        a
        matter of law, of the Administrative Agent or any Lender against any Guarantor.
        For the purposes hereof “demand” shall include the commencement and continuance
        of any legal proceedings.

       

      3.6  Reinstatement.
        The
        guarantee contained in this Section 3 shall continue to be effective, or
        be
        reinstated, as the case may be, if at any time payment, or any part thereof,
        of
        any of the Borrower Obligations is rescinded or must otherwise be restored
        or
        returned by the Administrative Agent or any Lender upon the insolvency,
        bankruptcy, dissolution, liquidation or reorganization of the Borrower or
        any
        Guarantor, or upon or as a result of the appointment of a receiver, intervenor
        or conservator of, or trustee or similar officer for, the Borrower or any
        Guarantor or any substantial part of its property, or otherwise, all as though
        such payments had not been made.

       

      3.7  Payments.
        Each
        Guarantor hereby guarantees that payments hereunder will be paid to the
        Administrative Agent without set-off or counterclaim in Dollars at the Funding
        Office.

       

       

      SECTION
        4.  GRANT
        OF
        SECURITY INTEREST

       

      Each
        Grantor hereby assigns and transfers to the Administrative Agent, and hereby
        grants to the Administrative Agent, for the ratable benefit of the Secured
        Parties, a security interest in, all of the following property now owned
        or at
        any time hereafter acquired by such Grantor or in which such Grantor now
        has or
        at any time in the future may acquire any right, title or interest
        (collectively, the “Collateral”),
        as
        collateral security for the prompt and complete payment and performance when
        due
        (whether at the stated maturity, by acceleration or otherwise) of such Grantor’s
        Obligations:

       

      (a)  all
        Intellectual Property;

       

      (b)  all
        Pledged Stock;

       

      (c)  all
        books
        and records pertaining to the Collateral; and

       

      (d)  to
        the
        extent not otherwise included, all Proceeds, Supporting Obligations 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;

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      provided,
        however,
        that
        notwithstanding any of the other provisions set forth in this Section 4,
        this
        Agreement shall not constitute a grant of and the Collateral shall not include
        a
        security interest in (a) any property to the extent that such grant of a
        security interest is prohibited by any Requirements of Law of a Governmental
        Authority, requires a consent not obtained of any Governmental Authority
        pursuant to such Requirement of Law or is prohibited by, or constitutes a
        breach
        or default under or results in the termination of or requires any consent
        not
        obtained under, any contract, license, agreement, instrument or other document
        evidencing or giving rise to such property or, in the case of any Pledged
        Stock,
        any applicable shareholder or similar agreement, except to the extent that
        such
        Requirement of Law or the term in such contract, license, agreement, instrument
        or other document or shareholder or similar agreement providing for such
        prohibition, breach, default or termination or requiring such consent is
        ineffective under applicable law, and (b) any trademark applications filed
        in
        the United States Patent and Trademark Office on the basis of such Grantor's
        “intent-to-use” such trademark, unless and until acceptable evidence of use of
        the Trademark has been filed with the United
        States Patent and Trademark Office
        pursuant
        to Section 1(c) or Section 1(d) of the Lanham Act (15 U.S.C. 1051, et seq.),
        to
        the extent that granting a Lien in such Trademark application prior
        to such filing would adversely affect the enforceability or
        validity of such Trademark application; provided,
        that
        upon the filing of acceptable evidence of use of the Trademark with the United
        States Patent and Trademark Office such application shall be automatically
        subject to the security interest granted herein and deemed to be included
        in the
        Collateral.

       

       

      SECTION
        5.  REPRESENTATIONS
        AND WARRANTIES

       

      To
        induce
        the Administrative Agent and the Lenders to enter into the Credit Agreement
        and
        to induce the Lenders to make their respective extensions of credit to the
        Borrower and each Subsidiary Borrower thereunder, each Grantor hereby represents
        and warrants to the Administrative
        Agent
        and each Lender that:

       

      5.1  Title;
        No Other Liens.
        Except
        for the security interest granted to the Administrative Agent for the ratable
        benefit of the Secured Parties pursuant to this Agreement and the other Liens
        permitted to exist on the Collateral by the Credit Agreement, such Grantor
        owns
        each item of the Collateral free and clear of any and all Liens or claims
        of
        others. No effective financing statement or other public notice with respect
        to
        all or any part of the Collateral is on file or of record in any public office,
        except such as have been filed in favor of the Administrative Agent, for
        the
        ratable benefit of the Secured Parties, pursuant to this Agreement or as
        are
        permitted by the Credit Agreement. For the avoidance of doubt, it is understood
        and agreed that any Grantor may, as part of its business, grant licenses
        to
        third parties to use Intellectual Property owned by or licensed to a Grantor.
        For purposes of this Agreement and the other Loan Documents, such licensing
        activity shall not constitute a “Lien” on such Intellectual Property. Each of
        the Administrative Agent and each Lender understands that any such licenses
        may
        be exclusive to the applicable licensees, and such exclusivity provisions
        may
        limit the ability of the Administrative Agent to utilize, sell, lease or
        transfer the related Intellectual Property or otherwise realize value from
        such
        Intellectual Property pursuant hereto.

       

      5.2  Perfected
        Liens.
        The
        security interests granted pursuant to this Agreement (a) upon completion
        of the
        filings and other actions specified on Schedule 3 (which, in the case of
        all filings and other documents referred to on said Schedule, have been
        delivered to the Administrative Agent in completed and duly executed form)
        will
        constitute valid perfected security interests in all of the Collateral in
        favor
        of the Administrative Agent, for the ratable benefit of the Secured Parties,
        as
        collateral security for such Grantor’s Obligations, enforceable in accordance
        with the terms hereof against all creditors of such Grantor and any Persons
        purporting to purchase any Collateral from such Grantor and (b) are prior
        to all
        other Liens on the Collateral in existence on the date hereof except for
        (i)
        unrecorded Liens 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      permitted
        by the Credit Agreement which have priority over the Liens on the Collateral
        by
        operation of law and (ii) in the case of Collateral other than Pledged Stock,
        Permitted Liens; provided,
        however,
        that
        additional filings in the United States Patent and Trademark Office and United
        States Copyright Office may be necessary with respect to the perfection of
        the
        Administrative Agent’s Lien in United States registrations and applications for
        Trademarks, Patents and Copyrights which are filed by, issued to, or acquired
        by
        any Grantor after the date hereof and, provided,
        further,
        that
        additional filings and/or other actions may be required to perfect the
        Administrative Agent’s Lien in Intellectual Property Collateral which is created
        under the laws of a jurisdiction outside the United States.

       

      5.3  Jurisdiction
        of Organization; Chief Executive Office.
        On the
        date hereof, such Grantor’s jurisdiction of organization and the location of
        such Grantor’s chief executive office or sole place of business or principal
        residence, as the case may be, are specified on Schedule 5. Such Grantor
        has
        furnished to the Administrative Agent a certified charter, certificate of
        incorporation or other organizational document and long-form good standing
        certificate as of a date which is recent to the date hereof.

       

      5.4  Pledged
        Stock.
        (a)
        The
        shares of the Pledged Stock pledged by such Grantor hereunder constitute
        all the
        issued and outstanding shares of all classes of the Capital Stock of each
        Issuer
        owned by such Grantor or, in the case of Foreign Subsidiary Voting Stock,
        if
        less, 66% of the outstanding Foreign Subsidiary Voting Stock of each relevant
        Issuer or, if less, such amount as has been previously agreed with the
        Administrative Agent.

       

      (b)  All
        the
        shares of the Pledged Stock have been duly and validly issued and are fully
        paid
        and nonassessable.

       

      (c)  Such
        Grantor is the record and beneficial owner of, and has good and marketable
        title
        to, the Pledged Stock pledged by it hereunder, free of any and all Liens
        or
        options in favor of, or claims of, any other Person, except the security
        interest created by this Agreement and any statutory Liens permitted under
        Section 7.3 of the Credit Agreement.

       

      5.5  Intellectual
        Property.
        (a)
        Schedule
        6 lists all registrations and applications recorded in the United States
        Patent
        and Trademark Office or the United States Copyright Office included in
        Intellectual Property owned by such Grantor in its own name on the date hereof
        and all licenses under which such Grantor holds or has the right to an exclusive
        license in Intellectual Property on the date hereof that such Grantor has
        recorded in one of the foregoing offices, including the registration or
        application number for such licensed Intellectual Property. With respect
        to any
        unpublished patent applications (whether disclosed on Schedule 6 or hereafter
        disclosed by such Grantor), such Grantor will disclose on Schedule 6 and
        in any
        subsequent report or disclosure, the application number for such patent
        application but not the title or subject matter. In the event that the
        Administrative Agent or any agent thereof discovers the title or subject
        matter
        of any such patent application prior to its publication, through any filing
        receipt or otherwise, the Administrative Agent will not knowingly disclose
        or
        use such information for any purpose.

       

      (b)  On
        the
        date hereof, all material Intellectual Property owned by such Grantor is,
        to its
        knowledge, valid, subsisting, unexpired and enforceable, has not been abandoned
        and, to its knowledge, does not infringe upon the Intellectual Property rights
        of any other Person in any material respect except for the alleged infringements
        and enforcement activity as disclosed on Schedule 6.

       

      (c)  Except
        as
        set forth in Schedule 6, on the date hereof, no Grantor has granted an exclusive
        license in the territory of the United Stated in or to (i) any of the following
        Trademarks: AVIS, BUDGET, 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      and
        WE
        TRY HARDER or (ii) any Patents that cover the Wizard System. It is understood
        that Schedule 6 shall be completed by the Grantor within 30 days after the
        date
        hereof.

       

      (d)  No
        holding, decision or judgment has been rendered by any Governmental Authority
        against such Grantor which would limit, cancel or question the validity of,
        or
        such Grantor’s rights in, any Intellectual Property owned by such Grantor in any
        respect that could reasonably be expected to have a Material Adverse
        Effect.

       

      (e)  Except
        for the alleged infringements and enforcement activity disclosed on Schedule
        6,
        to such Grantor’s knowledge, no action or proceeding is pending or threatened on
        the date hereof seeking to limit, cancel or assert the invalidity of any
        Intellectual Property owned by such Grantor or such Grantor’s ownership interest
        therein, which, if adversely determined, would have a material adverse effect
        on
        the value of any material Intellectual Property owned by such
        Grantor.

       

       

      SECTION
        6.  COVENANTS

       

      Each
        Grantor covenants and agrees with the Administrative Agent and the Lenders
        that,
        from and after the date of this Agreement until the Obligations shall have
        been
        paid in full, no Letter of Credit shall be outstanding and the Commitments
        shall
        have terminated:

       

      6.1  Delivery
        of Instruments, Certificated Securities and Chattel Paper.
        If any
        amount payable under or in connection with any of the Collateral shall be
        or
        become evidenced by any Instrument, Certificated Security or Chattel Paper,
        such
        Instrument, Certificated Security or Chattel Paper shall be promptly delivered
        to the Administrative Agent, duly indorsed (including by delivery of related
        stock powers) in a manner reasonably satisfactory to the Administrative Agent,
        to be held as Collateral pursuant to this Agreement.

       

      6.2 Payment
        of Obligations.
        Such
        Grantor (other than Holdings and the Borrower) will pay, discharge or otherwise
        satisfy at or before maturity or before they become delinquent, as the case
        may
        be, all obligations and liabilities in respect of taxes, assessments and
        governmental charges or levies imposed upon the Collateral or in respect
        of
        income or profits therefrom, as well as all claims of any kind against or
        with
        respect to the Collateral, except where the amount or validity thereof is
        currently being contested in good faith by appropriate proceedings and reserves
        in conformity with GAAP with respect thereto have been provided on the books
        of
        such Grantor or except to the extent that such failure to do so could not
        reasonably be expected to result in a Material Adverse Effect.

       

      6.3  Maintenance
        of Perfected Security Interest; Further Documentation.
        (a)
        Such
        Grantor shall not take any action or fail to take any action which would
        result
        in the security interest created by this Agreement as a perfected security
        interest having a priority which is less than that described in Section 5.2
        and
        shall make commercially reasonable efforts to defend such security interest
        against the claims and demands of all Persons whomsoever, subject to the
        rights
        of such Grantor under the Loan Documents to dispose of the
        Collateral.

       

      (b)  At
        any
        time and from time to time, upon the written request of the Administrative
        Agent, and at the sole expense of such Grantor, such Grantor will promptly
        and
        duly execute and deliver, and have recorded, such further instruments and
        documents and take such further actions as the Administrative Agent may
        reasonably request for the purpose of obtaining or preserving the full benefits
        of this Agreement and of the rights and powers herein granted, including,
        without limitation, (i) filing any financing or continuation statements under
        the Uniform Commercial Code (or other similar laws) in effect in any
        jurisdiction with respect to the security interests created hereby and (ii)
        in
        the case of Pledged Stock and any other relevant Collateral, taking any actions
        necessary to enable the Administrative Agent 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      to
        obtain
“control” (within the meaning of the applicable Uniform Commercial Code) with
        respect thereto.

       

      6.4  Changes
        in Name, etc.
        Such
        Grantor will not, except upon 15 days’ prior written notice to the
        Administrative Agent, (i) change its jurisdiction of organization from that
        referred to in Section 5.3 or (ii) change its name. Such Grantor shall deliver
        to the Administrative Agent all additional executed financing statements
        and
        other documents reasonably requested by the Administrative Agent to maintain
        the
        validity, perfection and priority of the security interests provided for
        herein.

       

      6.5 Notices.
        Such
        Grantor will advise the Administrative Agent and the Lenders promptly, in
        reasonable detail, of:

       

      (a)  any
        Lien
        (other than security interests created hereby or Liens permitted under the
        Credit Agreement) on any of the Collateral which would adversely affect the
        ability of the Administrative Agent to exercise any of its remedies hereunder;
        and

       

      (b)  of
        the
        occurrence of any other event which could reasonably be expected to have
        a
        material adverse effect on the aggregate value of the Collateral or on the
        security interests created hereby.

       

      6.6  Pledged
        Stock.
        (a)
        If such
        Grantor shall become entitled to receive or shall receive any certificate
        (including, without limitation, any certificate representing a dividend or
        a
        distribution in connection with any reclassification, increase or reduction
        of
        capital or any certificate issued in connection with any reorganization),
        option
        or rights in respect of the Capital Stock of any Issuer, whether in addition
        to,
        in substitution of, as a conversion of, or in exchange for, any shares of
        the
        Pledged Stock, or otherwise in respect thereof, such Grantor shall accept
        the
        same as the agent of the Administrative Agent and the Lenders, hold the same
        in
        trust for the Administrative Agent and the Lenders and deliver the same
        forthwith to the Administrative Agent in the exact form received, duly indorsed
        by such Grantor to the Administrative Agent, if required, together with an
        undated stock power covering such certificate duly executed in blank by such
        Grantor and with, if the Administrative Agent so requests, signature guaranteed,
        to be held by the Administrative Agent, subject to the terms hereof, as
        additional collateral security for such Grantor’s Obligations. If an Event of
        Default shall have occurred and be continuing, any sums paid upon or in respect
        of the Pledged Stock upon the liquidation or dissolution of any Issuer shall
        be
        paid over to the Administrative Agent to be held by it hereunder as additional
        collateral security for the applicable Grantor’s Obligations, and in case any
        distribution of capital shall be made on or in respect of the Pledged Stock
        or
        any property shall be distributed upon or with respect to the Pledged Stock
        pursuant to the recapitalization or reclassification of the capital of any
        Issuer or pursuant to the reorganization thereof, the property so distributed
        shall, unless otherwise subject to a perfected security interest in favor
        of the
        Administrative Agent, be delivered to the Administrative Agent to be held
        by it
        hereunder as additional collateral security for such Obligations. If any
        sums of
        money or property so paid or distributed in respect of the Pledged Stock
        shall
        be received by such Grantor, such Grantor shall, until such money or property
        is
        paid or delivered to the Administrative Agent, hold such money or property
        in
        trust for the Lenders, segregated from other funds of such Grantor, as
        additional collateral security for the Obligations.

       

      (b)  Without
        the prior written consent of the Administrative Agent (such consent not to
        be
        unreasonably withheld), such Grantor will not (i) sell, assign, transfer,
        exchange, or otherwise dispose of, or grant any option with respect to, the
        Pledged Stock or Proceeds thereof (except pursuant to a transaction expressly
        permitted by the Credit Agreement), (ii) create, incur or permit to exist
        any
        Lien or option in favor of, or any claim of any Person with respect to, any
        of
        the Pledged Stock or Proceeds thereof, or any interest therein, except for
        the
        security interests created by this Agreement or statutory Liens permitted
        by the
        Credit Agreement or, in the case of such Proceeds, Permitted Liens or (iii)
        enter 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      into
        any
        agreement or undertaking restricting the right or ability of such Grantor
        or the
        Administrative Agent to sell, assign or transfer any of the Pledged Stock
        or
        Proceeds thereof.

       

      (c)  The
        Administrative Agent will execute and deliver (or cause to be executed and
        delivered) to each Grantor all such proxies and other instruments as such
        Grantor may request for the purpose of enabling such Grantor to exercise
        the
        voting and other rights that it is entitled to exercise and to receive the
        dividends or interest payments that it is authorized to receive and retain
        under
        the Credit Agreement.

       

      (d)  In
        the
        case of each Grantor which is an Issuer, such Issuer agrees that (i) it will
        be
        bound by the terms of this Agreement relating to the Pledged Stock issued
        by it
        and will comply with such terms insofar as such terms are applicable to it,
        (ii)
        it will notify the Administrative Agent promptly in writing of the occurrence
        of
        any of the events described in Section 6.6(a) with respect to the Pledged
        Stock
        issued by it and (iii) the terms of Sections 7.1(c) and 7.5 shall apply to
        it,
mutatis mutandis,
        with
        respect to all actions that may be required of it pursuant to Section 7.1(c)
        or
        7.5 with respect to the Pledged Stock issued by it.

       

      6.7  Intellectual
        Property.
        (a)
        Such
        Grantor (either itself or through licensees) will (i) to the extent consistent
        with reasonable commercial judgment, continue to use each material Trademark
        owned by such Grantor on each and every trademark class of goods applicable
        to
        its current line as reflected in its current catalogs, brochures and price
        lists
        in order to maintain such Trademark in full force free from any claim of
        abandonment for non-use, (ii) to the extent consistent with reasonable
        commercial judgment, maintain the quality of products and services offered
        under
        such Trademark at a level substantially consistent with the quality of products
        and services offered under such Trademark as of the date hereof, (iii) use
        such
        Trademark with the appropriate notice of registration and all other notices
        and
        legends required by applicable Requirements of Law, and (iv) not (and not
        authorize any licensee or sublicensee thereof to) do any act or knowingly
        omit
        to do any act whereby such Trademark may become unenforceable or impaired
        in any
        way except to the extent consistent with reasonable commercial judgment.
        Every
        Trademark adopted or acquired by a Grantor that is confusingly similar to
        or a
        colorable imitation of any Trademark owned by such Grantor will automatically
        be
        included in the Collateral for all purposes of this Agreement, and, if a
        Grantor
        applies to register or registers any such Trademark, the applicable Grantor
        shall notify the Administrative Agent pursuant to Section 6.6(f) in order
        for
        the Administrative Agent, for the ratable benefit of the Secured Parties,
        to
        obtain a perfected security interest in such Trademark pursuant to this
        Agreement.

       

      (b)  Such
        Grantor, to the extent consistent with reasonable commercial judgment, will
        not
        (and will not authorize its licensees to) do any act, or omit to do any act,
        whereby any material Patent is likely to become forfeited, abandoned or
        dedicated to the public.

       

      (c)  Such
        Grantor, to the extent consistent with reasonable commercial judgment, will
        not
        (and will not authorize any licensee or sublicensee thereof to) (i) do any
        act
        or knowingly omit to do any act whereby any material portion of the Copyrights
        will be materially impaired or (ii) do any act whereby any material portion
        of
        the Copyrights may fall into the public domain.

       

      (d)  Such
        Grantor will not (and will not authorize its licensees to) do any act that
        knowingly uses any Intellectual Property owned by such Grantor to infringe
        upon
        the Intellectual Property rights of any other Person in any material
        respect.

       

      (e)  Such
        Grantor will notify the Administrative Agent and the Lenders promptly if
        it
        knows, or has reason to know, that any application or registration relating
        to
        any material Intellectual Property is likely to become forfeited, abandoned
        or
        dedicated to the public, or of any material adverse determination 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      or
        development (including, without limitation, the institution of, or any such
        determination or development in, any proceeding in the United States Patent
        and
        Trademark Office, the United States Copyright Office or any court or tribunal
        in
        any country) regarding such Grantor’s ownership of, or the validity of, any
        material Intellectual Property or such Grantor’s right to register the same or
        to own and maintain the same.

       

      (f)  Whenever
        such Grantor, either by itself or through any agent, employee, licensee or
        designee, shall file an application for the registration of any Intellectual
        Property owned by, or shall file a recordation of any Intellectual Property
        exclusively licensed to, such Grantor with the United States Patent and
        Trademark Office, the United States Copyright Office or any similar office
        or
        agency in any other country or any political subdivision thereof, such Grantor
        shall report such filing to the Administrative Agent in accordance with Section
        6 of the Credit Agreement, provided that all such disclosure is subject to
        the
        last sentence of Section 5.5 of this Agreement, and except that such report
        shall include all such application and recordation filings by such Grantor
        through the date five (5) Business Days prior to the date on which such report
        required by Section 6 of the Credit Agreement is sent to the Administrative
        Agent. Upon request of the Administrative Agent, such Grantor shall execute
        and
        deliver, and have recorded, any and all reasonably necessary agreements,
        instruments, documents, and papers, in a form to be mutually agreed upon
        by the
        Borrower and the Administrative Agent, as the Administrative Agent may request
        to evidence the Administrative Agent’s and the Lenders’ security interest
        (provided that such Grantor will not have an affirmative obligation to seek
        an
        application or registration for Intellectual Property which Borrower reasonably
        elects not to seek) in any (i) Copyright, Patent, Trademark; and (ii) any
        material, exclusive license grant to such Grantor with respect to any Trademark,
        Copyright or Patent (provided that (1) the Trademark, Copyright or Patent
        registration or application with respect to which such exclusive license
        is
        granted is identified in the applicable exclusive license agreement or is
        otherwise already known to such Grantor; and (2) such Grantor shall not be
        obligated to obtain the consent of any third party licensor that may be
        necessary to grant such security interest in such exclusive license), and
        the
        general intangibles of such Grantor relating thereto or represented thereby
        and,
        with respect to Trademarks, the goodwill of the business connected with the
        use
        of or symbolized by such Trademarks.

       

      (g)  To
        the
        extent consistent with reasonable commercial judgment, such Grantor will
        take
        all necessary steps, including, without limitation, in any proceeding before
        the
        United States Patent and Trademark Office, the United States Copyright Office
        or
        any similar office or agency in any other country or any political subdivision
        thereof, to maintain and pursue each application (and to obtain the relevant
        registration) and to maintain each registration of the material Intellectual
        Property, including, without limitation, filing of applications for renewal,
        affidavits of use and affidavits of incontestability.

       

      (h)  In
        the
        event that any material Intellectual Property owned by such Grantor is
        infringed, misappropriated or diluted by a third party, or any licensee of
        such
        Intellectual Property breaches the terms and conditions of the applicable
        license, such Grantor shall (i) take such actions as such Grantor shall
        reasonably deem appropriate under the circumstances to protect such Intellectual
        Property and (ii) if such Intellectual Property is of material economic value,
        promptly notify the Administrative Agent after it learns thereof if such
        infringement, misappropriation, dilution or breach is material, and, if
        appropriate in such Grantor’s reasonable commercial judgment, sue for
        infringement, misappropriation, dilution or breach of contract, seek injunctive
        relief and recover any and all damages for such infringement, misappropriation,
        dilution or breach of contract. 

       

      6.8  Foreign
        Perfection Matters.
        Such
        Grantor will use its commercially reasonable efforts to, within 180 days
        after
        the Closing Date, or such later date upon the consent of the Administrative
        Agent, deliver to the Administrative Agent (i) the duly executed stock pledge
        agreements described in Schedule 4 granting to the Administrative Agent,
        for the
        benefit of the Lenders, a perfected first priority security 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      interest
        in the Capital Stock of 66% of the Capital Stock of the first-tier Foreign
        Subsidiaries owned by such Grantor or, if less, such amount as may be reasonably
        acceptable to the Administrative Agent, (ii) to the extent not delivered
        on the
        Closing Date, the certificates representing such Capital Stock, together
        with
        undated stock powers, in blank, executed and delivered by a duly authorized
        officer of the Borrower or relevant Grantor and (iii) legal opinions relating
        to
        the matters described above, which opinions shall be in form and substance
        reasonably satisfactory to the Administrative Agent.

       

      SECTION
        7.  REMEDIAL
        PROVISIONS

       

      7.1  Pledged
        Stock.
        (a)
        Unless
        an Event of Default shall have occurred and be continuing and the Administrative
        Agent shall have given notice to the relevant Grantor of the Administrative
        Agent’s intent to exercise its corresponding rights pursuant to Section 7.1(b),
        each Grantor shall be permitted to receive all cash dividends paid in respect
        of
        the Pledged Stock of the relevant Issuer to the extent permitted by the Credit
        Agreement, to pay and declare dividends to the extent permitted by the Credit
        Agreement and to exercise all voting and corporate or other organizational
        rights with respect to the Pledged Stock; provided, however, that no vote
        shall
        be cast or corporate or other organizational right exercised or other action
        taken which, in the Administrative Agent’s reasonable judgment, would impair the
        Collateral or which would be inconsistent with or result in any violation
        of any
        provision of the Credit Agreement, this Agreement or any other Loan
        Document.

       

      (b)  If
        an
        Event of Default shall occur and be continuing and the Administrative Agent
        shall give notice of its intent to exercise such rights to the relevant Grantor
        or Grantors, (i) the Administrative Agent shall have the right to receive
        any and all cash dividends, payments or other Proceeds paid in respect of
        the
        Pledged Stock and make application thereof to the Obligations in such order
        as
        the Administrative Agent may determine, and (ii) any or all of the Pledged
        Stock
        shall be registered in the name of the Administrative Agent or its nominee,
        and
        the Administrative Agent or its nominee may thereafter exercise (x) all voting,
        corporate and other rights pertaining to such Pledged Stock at any meeting
        of
        shareholders of the relevant Issuer or Issuers or otherwise and (y) any and
        all rights of conversion, exchange and subscription and any other rights,
        privileges or options pertaining to such Pledged Stock as if it were the
        absolute owner thereof (including, without limitation, the right to exchange
        at
        its discretion any and all of the Pledged Stock upon the merger, consolidation,
        reorganization, recapitalization or other fundamental change in the corporate
        or
        other organizational structure of any Issuer, or upon the exercise by any
        Grantor or the Administrative Agent of any right, privilege or option pertaining
        to such Pledged Stock, and in connection therewith, the right to deposit
        and
        deliver any and all of the Pledged Stock with any committee, depositary,
        transfer agent, registrar or other designated agency upon such terms and
        conditions as the Administrative Agent may determine), all without liability
        except to account for property actually received by it, but the Administrative
        Agent shall have no duty to any Grantor to exercise any such right, privilege
        or
        option and shall not be responsible for any failure to do so or delay in
        so
        doing.

       

      (c)  Each
        Grantor hereby authorizes and instructs each Issuer of any Pledged Stock
        pledged
        by such Grantor hereunder to (i) comply with any instruction received by
        it from
        the Administrative Agent in writing that (x) states that an Event of Default
        has
        occurred and is continuing and (y) is otherwise in accordance with the terms
        of
        this Agreement, without any other or further instructions from such Grantor,
        and
        each Grantor agrees that each Issuer shall be fully protected in so complying,
        and (ii) unless otherwise expressly permitted hereby, pay any dividends or
        other
        payments with respect to the Pledged Stock directly to the Administrative
        Agent.

       

      7.2  Proceeds
        to be Turned Over To Administrative Agent.
        If an
        Event of Default shall occur and be continuing, all Proceeds received by
        any
        Grantor consisting of cash, checks and other near-cash items shall be held
        by
        such Grantor in trust for the Administrative Agent and the Lenders, segregated
        

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      from
        other funds of such Grantor, and shall, forthwith upon receipt by such Grantor,
        be turned over to the Administrative Agent in the exact form received by
        such
        Grantor (duly indorsed by such Grantor to the Administrative Agent, if
        required). All Proceeds received by the Administrative Agent hereunder shall
        be
        held by the Administrative Agent in a Collateral Account maintained under
        its
        sole dominion and control. All Proceeds while held by the Administrative
        Agent
        in a Collateral Account (or by such Grantor in trust for the Administrative
        Agent and the Lenders) shall continue to be held as collateral security for
        all
        the Obligations and shall not constitute payment thereof until applied as
        provided in Section 7.3.

       

      7.3  Application
        of Proceeds.
        At such
        intervals as may be agreed upon by the Borrower and the Administrative Agent,
        or, if an Event of Default shall have occurred and be continuing, at any
        time at
        the Administrative Agent’s election, the Administrative Agent may apply all or
        any part of Proceeds constituting Collateral, whether or not held in any
        Collateral Account, and any proceeds of the guarantees set forth in Section
        2 or
        3, as applicable, in payment of the Obligations in the following order (and,
        to
        the extent applicable, in a manner consistent with the Credit
        Agreement):

       

      First,
        to pay
        incurred and unpaid fees and expenses of the Administrative Agent under the
        Loan
        Documents;

       

      Second,
        to the
        Administrative Agent, for application by it towards payment of amounts then
        due
        and owing and remaining unpaid in respect of the Obligations, pro rata
        among
        the Secured Parties according to the amounts of the Obligations then due
        and
        owing and remaining unpaid to the Secured Parties;

       

      Third,
        to the
        Administrative Agent, for application by it towards prepayment of the
        Obligations, pro rata
        among
        the Secured Parties according to the amounts of the Obligations then held
        by the
        Secured Parties; and

       

      Fourth,
        any
        balance remaining after the Obligations shall have been paid in full, no
        Letters
        of Credit shall be outstanding (other than those Letters of Credit that have
        been Collateralized) and the Commitments shall have terminated shall be paid
        over to the Borrower or to whomsoever may be lawfully entitled to receive
        the
        same.

       

      7.4  Code
        and Other Remedies.
        If an
        Event of Default shall occur and be continuing, the Administrative Agent,
        on
        behalf of the Lenders, may exercise, in addition to all other rights and
        remedies granted to them in this Agreement and in any other instrument or
        agreement securing, evidencing or relating to the Obligations, all rights
        and
        remedies of a secured party under the New York UCC or any other applicable
        law.
        Without limiting the generality of the foregoing, the Administrative Agent,
        without demand of performance or other demand, presentment, protest,
        advertisement or notice of any kind (except any notice required by law) to
        or
        upon any Grantor or any other Person (all and each of which demands, defenses,
        advertisements and notices are hereby waived to the fullest extent permitted
        by
        applicable law), may in such circumstances forthwith collect, receive,
        appropriate and realize upon the Collateral, or any part thereof, and/or
        may
        forthwith sell, lease, license, assign, give option or options to purchase,
        or
        otherwise dispose of and deliver the Collateral or any part thereof (or contract
        to do any of the foregoing), in one or more parcels at public or private
        sale or
        sales, at any exchange, broker’s board or office of the Administrative Agent or
        any Lender or elsewhere upon such terms and conditions as it may deem advisable
        and at such prices as it may deem best, for cash or on credit or for future
        delivery without assumption of any credit risk. The Administrative Agent
        or any
        Lender shall have the right upon any such public sale or sales, and, to the
        extent permitted by law, upon any such private sale or sales, to purchase
        the
        whole or any part of the Collateral so sold, free of any right or equity
        of
        redemption in any Grantor, which right or equity is hereby waived and released.
        Each Grantor further agrees, at the Administrative Agent’s request, to assemble
        the Collateral and make it available to the Administrative 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Agent
        at
        places which the Administrative Agent shall reasonably select, whether at
        such
        Grantor’s premises or elsewhere. The Administrative Agent shall apply the net
        proceeds of any action taken by it pursuant to this Section 7.4, after deducting
        all reasonable costs and expenses of every kind incurred in connection therewith
        or incidental to the care or safekeeping of any of the Collateral or in any
        way
        relating to the Collateral or the rights of the Administrative Agent and
        the
        Lenders hereunder, including, without limitation, reasonable attorneys’ fees and
        disbursements, to the payment in whole or in part of the Obligations, in
        such
        order as the Administrative Agent may elect, and only after such application
        and
        after the payment by the Administrative Agent of any other amount required
        by
        any provision of law, including, without limitation, Section 9-615(a)(3)
        of the
        New York UCC, need the Administrative Agent account for the surplus, if any,
        to
        any Grantor. To the extent permitted by applicable law, each Grantor waives
        all
        claims, damages and demands it may acquire against the Administrative Agent
        or
        any Lender arising out of the exercise by them of any rights hereunder.

       

      7.5  Registration
        Rights.
        (a)
        If the
        Administrative Agent shall determine to exercise its right to sell any or
        all of
        the Pledged Stock pursuant to Section 7.4, and if in the opinion of the
        Administrative Agent it is necessary or advisable to have the Pledged Stock,
        or
        that portion thereof to be sold or registered under the provisions of the
        Securities Act, the relevant Grantor will cause the Issuer thereof to (i)
        execute and deliver, and cause the directors and officers of such Issuer
        to
        execute and deliver, all such instruments and documents, and do or cause
        to be
        done all such other acts as may be, in the reasonable opinion of the
        Administrative Agent, necessary or advisable to register the Pledged Stock,
        or
        that portion thereof to be sold, under the provisions of the Securities Act,
        (ii) use its commercially reasonable best efforts to cause the registration
        statement relating thereto to become effective and (iii) make all amendments
        thereto and/or to the related prospectus which, in the opinion of the
        Administrative Agent, are necessary or advisable, all in conformity with
        the
        requirements of the Securities Act and the rules and regulations of the
        Securities and Exchange Commission applicable thereto. Each Grantor agrees
        to
        cause such Issuer to comply with the provisions of the securities or “Blue Sky”
laws of any and all jurisdictions which the Administrative Agent shall designate
        and to make available to its security holders, as soon as practicable, an
        earnings statement (which need not be audited) which will satisfy the provisions
        of Section 11(a) of the Securities Act.

       

      (b)  Each
        Grantor recognizes that the Administrative Agent may be unable to effect
        a
        public sale of any or all the Pledged Stock, by reason of certain prohibitions
        contained in the Securities Act and applicable state securities laws or
        otherwise, and may be compelled to resort to one or more private sales thereof
        to a restricted group of purchasers which will be obliged to agree, among
        other
        things, to acquire such securities for their own account for investment and
        not
        with a view to the distribution or resale thereof. Each Grantor acknowledges
        and
        agrees that any such private sale may result in prices and other terms less
        favorable than if such sale were a public sale and, notwithstanding such
        circumstances, agrees that any such private sale shall be deemed to have
        been
        made in a commercially reasonable manner. The Administrative Agent shall
        be
        under no obligation to delay a sale of any of the Pledged Stock for the period
        of time necessary to permit the Issuer thereof to register such securities
        for
        public sale under the Securities Act, or under applicable state securities
        laws,
        even if such Issuer would agree to do so.

       

      (c)  Each
        Grantor agrees to use its best efforts to do or cause to be done all such
        other
        acts as may be necessary to make such sale or sales of all or any portion
        of the
        Pledged Stock pursuant to this Section 7.5 valid and binding and in compliance
        with any and all other applicable Requirements of Law. 

       

      7.6  Deficiency.
        Each
        Grantor shall remain liable for any deficiency if the proceeds of any sale
        or
        other disposition of the Collateral are insufficient to pay its Obligations
        and
        the fees and disbursements of any attorneys employed by the Administrative
        Agent
        or any Lender to collect such deficiency.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      7.7  Grant
        of Intellectual Property License.
        If an
        Event of Default shall occur and be continuing, and for so long as such Event
        of
        Default in continuing, each Grantor hereby grants to the Administrative Agent
        an
        irrevocable, non-exclusive, fully paid-up, worldwide license or (for third
        party
        rights) sublicense, to use, license or sublicense any of the Intellectual
        Property now or hereafter owned, licensed in (to the fullest extent permitted
        by
        such license), held for use or acquired by such Grantor (and subject to the
        applicable terms and conditions governing such Grantor’s rights in and to such
        Intellectual Property at the time of the Event of Default), for the purpose
        of
        enabling the Administrative Agent to exercise rights and remedies under Section
        7 hereof at such time as it shall be lawfully entitled to exercise such rights
        and remedies, and for no other purpose; subject to (i) the maintenance of
        quality control standards with respect to all goods and services sold under
        any
        licensed Trademarks substantially consistent with those in effect immediately
        prior to the Event of Default in order to maintain the validity and
        enforceability of such Trademarks and (ii) exclusive licenses granted by
        such
        Grantor prior to the Event of Default to the extent such licenses conflict
        at
        the time of the Event of Default with the granting of other licenses in and
        to
        the same Intellectual Property. Such license or sublicense to the Administrative
        Agent shall include access to all media in which any of the applicable
        intellectual property may be recorded, processed or stored and all computer
        programs related thereto.

       

       

      SECTION
        8.  THE
        ADMINISTRATIVE AGENT

       

      8.1  Administrative
        Agent’s Appointment as Attorney-in-Fact, etc.
        (a)
        Each
        Grantor hereby irrevocably constitutes and appoints the Administrative Agent
        and
        any officer or agent thereof, with full power of substitution, as its true
        and
        lawful attorney-in-fact with full irrevocable power and authority in the
        place
        and stead of such Grantor and in the name of such Grantor or in its own name,
        for the purpose of carrying out the terms of this Agreement, to take any
        and all
        appropriate action and to execute any and all documents and instruments which
        may be necessary or desirable to accomplish the purposes of this Agreement,
        and,
        without limiting the generality of the foregoing, each Grantor hereby gives
        the
        Administrative Agent the power and right, on behalf of such Grantor, without
        notice to or assent by such Grantor, to do any or all of the
        following:

       

      (i)  in
        the
        name of such Grantor or its own name, or otherwise, take possession of and
        indorse and collect any checks, drafts, notes, acceptances or other instruments
        for the payment of moneys due with respect to any Collateral and file any
        claim
        or take any other action or proceeding in any court of law or equity or
        otherwise deemed appropriate by the Administrative Agent for the purpose
        of
        collecting any and all such moneys due under any Collateral whenever
        payable;

       

      (ii)  in
        the
        case of any Intellectual Property, execute and deliver, and have recorded,
        any
        and all agreements, instruments, documents and papers as the Administrative
        Agent may request to evidence the Administrative Agent’s and the Lenders’
security interest in such Intellectual Property and the goodwill connected
        with
        the use of and symbolized by any Trademarks and general intangibles of such
        Grantor relating thereto or represented thereby;

       

      (iii)  pay
        or
        discharge taxes and Liens levied or placed on or threatened against the
        Collateral, effect any repairs or any insurance called for by the terms of
        this
        Agreement and pay all or any part of the premiums therefor and the costs
        thereof; 

       

      (iv)  execute,
        in connection with any sale provided for in Section 7.4 or 7.5, any
        indorsements, assignments or other instruments of conveyance or transfer
        with
        respect to the Collateral; and

       

      (v)  (1)  direct
        any party liable for any payment under any of the Collateral to make payment
        of
        any and all moneys due or to become due thereunder directly to the
        Administrative Agent or as the Administrative Agent shall direct; (2)  
        ask or demand for, collect, and receive payment of and 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      receipt
        for, any and all moneys, claims and other amounts due or to become due at
        any
        time in respect of or arising out of any Collateral; (3)
        commence
        and prosecute any suits, actions or proceedings at law or in equity in any
        court
        of competent jurisdiction to collect the Collateral or any portion thereof
        and
        to enforce any other right in respect of any Collateral; (4) defend
        any suit, action or proceeding brought against such Grantor with respect
        to any
        Collateral; (5)
        settle,
        compromise or adjust any such suit, action or proceeding and, in connection
        therewith, give such discharges or releases as the Administrative Agent may
        deem
        appropriate; (6)
        license
        or assign any Copyright, Patent or Trademark owned by or licensed to (to
        the
        fullest extent permitted by such license and subject to the terms and conditions
        of such license) such Grantor (along with the goodwill of the business connected
        with the use of and symbolized by any Trademarks), throughout the world for
        such
        term or terms, on such conditions, and in such manner, as the Administrative
        Agent shall in its reasonable discretion determine; and (7)
        generally, sell, transfer, pledge and make any agreement with respect to
        or
        otherwise deal with any of the Collateral as fully and completely as though
        the
        Administrative Agent were the absolute owner thereof for all purposes, and
        do,
        at the Administrative Agent’s option and such Grantor’s expense, at any time, or
        from time to time, all acts and things which the Administrative Agent deems
        necessary to protect, preserve or realize upon the Collateral and the
        Administrative Agent’s and the Lenders’ security interests therein and to effect
        the intent of this Agreement, all as fully and effectively as such Grantor
        might
        do.

       

      Anything
        in this Section 8.1(a) to the contrary notwithstanding, the Administrative
        Agent
        agrees that it will not exercise any rights under the power of attorney provided
        for in this Section 8.1(a) unless an Event of Default shall have occurred
        and be
        continuing.

       

      (b)  If
        any
        Grantor fails to perform or comply with any of its material agreements contained
        herein, the Administrative Agent, at its option, but without any obligation
        so
        to do, may perform or comply, or otherwise cause performance or compliance,
        with
        such agreement.

       

      (c)  The
        reasonable out-of-pocket expenses of the Administrative Agent incurred in
        connection with actions undertaken as provided in this Section 8.1 shall
        be
        payable by such Grantor to the Administrative Agent on demand.

       

      (d)  Each
        Grantor hereby ratifies all that said attorneys shall lawfully do or cause
        to be
        done by virtue hereof. All powers, authorizations and agencies contained
        in this
        Agreement are coupled with an interest and are irrevocable until this Agreement
        is terminated and the security interests created hereby are
        released.

       

      8.2  Duty
        of Administrative Agent.
        The
        Administrative Agent’s sole duty with respect to the custody, safekeeping and
        physical preservation of the Collateral in its possession, under Section
        9-207
        of the New York UCC or otherwise, shall be to deal with it in the same manner
        as
        the Administrative Agent deals with similar property for its own account.
        Neither the Administrative Agent, any Lender nor any of their respective
        officers, directors, employees or agents shall be liable for failure to demand,
        collect or realize upon any of the Collateral or for any delay in doing so
        or
        shall be under any obligation to sell or otherwise dispose of any Collateral
        upon the request of any Grantor or any other Person or to take any other
        action
        whatsoever with regard to the Collateral or any part thereof. The powers
        conferred on the Administrative Agent and the Lenders hereunder are solely
        to
        protect the Administrative Agent’s and the Lenders’ interests in the Collateral
        and shall not impose any duty upon the Administrative Agent or any Lender
        to
        exercise any such powers. The Administrative Agent and the Lenders shall
        be
        accountable only for amounts that they actually receive as a result of the
        exercise of such powers, and neither they nor any of their officers, directors,
        employees or agents shall be responsible to any Grantor for any act or failure
        to act hereunder, except for their own gross negligence or willful
        misconduct.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      8.3  Execution
        of Financing Statements.
        Pursuant to any applicable law, each Grantor authorizes the Administrative
        Agent
        to file or record financing statements, continuation statements, and amendments
        to financing statements in any jurisdictions and with any filing offices
        as the
        Administrative Agent may determine are necessary or advisable to perfect
        the
        security interest granted to the Administrative Agent in connection herewith
        with respect to the Collateral without the signature of such Grantor, to
        the
        extent permitted by law, in such form as the Administrative Agent determines
        appropriate to perfect the security interests of the Administrative Agent
        under
        this Agreement. Such financing statements may describe the Collateral in
        the
        same manner as described in this Agreement or may contain an indication or
        description of Collateral that describes such property in any other manner
        as
        the Administrative Agent may determine, in its sole discretion, is necessary,
        advisable or prudent to ensure the perfection of the security interest in
        the
        Collateral granted to the Administrative Agent in connection with this
        Agreement, including, without limitation, describing such property as “all
        assets, whether now owned or hereafter acquired” or “all personal property,
        whether now owned or hereafter acquired.” Each Grantor hereby ratifies and
        authorizes the filing by the Administrative Agent of any financing statement
        with respect to the Collateral made prior to the date hereof.

       

      8.4  Authority
        of Administrative Agent.
        Each
        Grantor acknowledges that the rights and responsibilities of the Administrative
        Agent under this Agreement with respect to any action taken by the
        Administrative Agent or the exercise or non-exercise by the Administrative
        Agent
        of any option, voting right, request, judgment or other right or remedy provided
        for herein or resulting or arising out of this Agreement shall, as between
        the
        Administrative Agent and the Lenders, be governed by the Credit Agreement
        and by
        such other agreements with respect thereto as may exist from time to time
        among
        them, but, as between the Administrative Agent and the Grantors, the
        Administrative Agent shall be conclusively presumed to be acting as agent
        for
        the Lenders with full and valid authority so to act or refrain from acting,
        and
        no Grantor shall be under any obligation, or entitlement, to make any inquiry
        respecting such authority.

       

       

      SECTION
        9.  MISCELLANEOUS

       

      9.1  Amendments
        in Writing.
        None of
        the terms or provisions of this Agreement may be waived, amended, supplemented
        or otherwise modified except in accordance with Section 10.1 of the Credit
        Agreement.

       

      9.2  Notices.
        All
        notices, requests and demands to or upon the Administrative Agent or any
        Grantor
        hereunder shall be effected in the manner provided for in Section 10.2 of
        the
        Credit Agreement; provided that any such notice, request or demand to or
        upon
        any Guarantor shall be addressed to such Guarantor at its notice address
        set
        forth on Schedule 1.

       

      9.3  No
        Waiver by Course of Conduct; Cumulative Remedies.
        Neither
        the Administrative Agent nor any Lender shall by any act (except by a written
        instrument pursuant to Section 8.1), delay, indulgence, omission or otherwise
        be
        deemed to have waived any right or remedy hereunder or to have acquiesced
        in any
        Default or Event of Default. No failure to exercise, nor any delay in
        exercising, on the part of the Administrative Agent or any Lender, any right,
        power or privilege hereunder shall operate as a waiver thereof. No single
        or
        partial exercise of any right, power or privilege hereunder shall preclude
        any
        other or further exercise thereof or the exercise of any other right, power
        or
        privilege. A waiver by the Administrative Agent or any Lender of any right
        or
        remedy hereunder on any one occasion shall not be construed as a bar to any
        right or remedy which the Administrative Agent or such Lender would otherwise
        have on any future occasion. The rights and remedies herein provided are
        cumulative, may be exercised singly or concurrently and are not exclusive
        of any
        other rights or remedies provided by law.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      9.4  Enforcement
        Expenses; Indemnification.
        (a)
        Each
        Guarantor agrees to pay or reimburse each Lender and the Administrative Agent
        for all its reasonable documented out-of-pocket costs and expenses incurred
        in
        collecting against such Guarantor under the guarantees contained in Section
        2 or
        3, as applicable, or otherwise enforcing or preserving any rights under this
        Agreement and the other Loan Documents to which such Guarantor is a party,
        including, without limitation, the reasonable fees and disbursements of counsel
        (including the allocated fees and expenses of in-house counsel) to each Lender
        and of counsel to the Administrative Agent.

       

      (b)  Each
        Guarantor agrees to pay, and to save the Administrative Agent and the Lenders
        harmless from, any and all liabilities with respect to, or resulting from
        any
        delay in paying, any and all stamp, excise, sales or other taxes which may
        be
        payable or determined to be payable with respect to any of the Collateral
        or in
        connection with any of the transactions contemplated by this Agreement and,
        to
        the extent applicable, in a manner consistent with Section 2.19 of the Credit
        Agreement.

       

      (c)  Each
        Guarantor agrees to pay, and to save the Administrative Agent and the Lenders
        harmless from, any and all liabilities, obligations, losses, damages, penalties,
        actions, judgments, suits, costs, expenses or disbursements of any kind or
        nature whatsoever with respect to the execution, delivery, enforcement,
        performance and administration of this Agreement to the extent the Borrower
        would be required to do so pursuant to Section 10.5 of the Credit
        Agreement.

       

      (d)  The
        agreements in this Section 9.4 shall survive repayment of the Obligations
        and
        all other amounts payable under the Credit Agreement and the other Loan
        Documents.

       

      9.5  Successors
        and Assigns.
        This
        Agreement shall be binding upon the successors and assigns of each Grantor
        and
        shall inure to the benefit of the Administrative Agent and the Lenders and
        their
        successors and assigns; provided that no Grantor may assign, transfer or
        delegate any of its rights or obligations under this Agreement without the
        prior
        written consent of the Administrative Agent.

       

      9.6  Set-Off.
        Each
        Grantor hereby irrevocably authorizes the Administrative Agent and each Lender
        at any time and from time to time while an Event of Default shall have occurred
        and be continuing, without notice to such Grantor or any other Grantor, any
        such
        notice being expressly waived by each Grantor, to set-off and appropriate
        and
        apply any and all deposits (general or special, time or demand, provisional
        or
        final), in any currency, and any other credits, indebtedness or claims, in
        any
        currency, in each case whether direct or indirect, absolute or contingent,
        matured or unmatured, at any time held or owing by the Administrative Agent
        or
        such Lender to or for the credit or the account of such Grantor, or any part
        thereof in such amounts as the Administrative Agent or such Lender may elect,
        against and on account of the obligations and liabilities of such Grantor
        to the
        Administrative Agent or such Lender hereunder and claims of every nature
        and
        description of the Administrative Agent or such Lender against such Grantor,
        in
        any currency, whether arising hereunder, under the Credit Agreement, any
        other
        Loan Document or otherwise, as the Administrative Agent or such Lender may
        elect, whether or not the Administrative Agent or any Lender has made any
        demand
        for payment and although such obligations, liabilities and claims may be
        contingent or unmatured. The Administrative Agent and each Lender shall notify
        such Grantor promptly of any such set-off and the application made by the
        Administrative Agent or such Lender of the proceeds thereof, provided that
        the
        failure to give such notice shall not affect the validity of such set-off
        and
        application. The rights of the Administrative Agent and each Lender under
        this
        Section 9.6 are in addition to other rights and remedies (including, without
        limitation, other rights of set-off) which the Administrative Agent or such
        Lender may have.

       

      9.7  Counterparts.
        This
        Agreement may be executed by one or more of the parties to this Agreement
        on any
        number of separate counterparts (including by facsimile or other electronic
        

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      transmission),
        and all of said counterparts taken together shall be deemed to constitute
        one
        and the same instrument.

       

      9.8  Severability.
        Any
        provision of this Agreement which is prohibited or unenforceable in any
        jurisdiction shall, as to such jurisdiction, be ineffective to the extent
        of
        such prohibition or unenforceability without invalidating 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.

       

      9.9  Section
        Headings.
        The
        Section headings used in this Agreement are for convenience of reference
        only
        and are not to affect the construction hereof or be taken into consideration
        in
        the interpretation hereof.

       

      9.10  Integration.
        This
        Agreement and the other Loan Documents represent the agreement of the Grantors,
        the Administrative Agent and the Lenders with respect to the subject matter
        hereof and thereof, and there are no promises, undertakings, representations
        or
        warranties by the Administrative Agent or any Lender relative to subject
        matter
        hereof and thereof not expressly set forth or referred to herein or in the
        other
        Loan Documents.

       

      9.11 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.

       

      9.12  Submission
        To Jurisdiction; Waivers.
        Each
        Grantor hereby irrevocably and unconditionally:

       

      (a)  submits
        for itself and its property in any legal action or proceeding relating to
        this
        Agreement and the other Loan Documents to which it is a party, 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 of America 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 at its address referred
        to in Section 9.2 or at such other address of which the Administrative 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.

       

      9.13  Acknowledgements.
        Each
        Grantor hereby acknowledges that:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      (a)  it
        has
        been advised by counsel in the negotiation, execution and delivery of this
        Agreement and the other Loan Documents to which it is a party;

       

      (b)  neither
        the Administrative Agent nor any Lender has any fiduciary relationship with
        or
        duty to any Grantor arising out of or in connection with this Agreement or
        any
        of the other Loan Documents, and the relationship between the Grantors, on
        the
        one hand, and the Administrative Agent and Lenders, on the other hand, in
        connection herewith or therewith is solely that of debtor and creditor;
        and

       

      (c)  no
        joint
        venture is created hereby or by the other Loan Documents or otherwise exists
        by
        virtue of the transactions contemplated hereby among the Lenders or among
        the
        Grantors and the Lenders.

       

      9.14  Additional
        Grantors.
        Each
        Subsidiary of the Borrower that is required to become a party to this Agreement
        pursuant to Section 6.9 of the Credit Agreement shall become a Grantor for
        all
        purposes of this Agreement upon execution and delivery by such Subsidiary
        of an
        Assumption Agreement in the form of Annex 1 hereto.

       

      9.15  Releases.
        (a)
        At such
        time as the Obligations (other than Obligations in respect of Specified Swap
        Agreements) shall have been paid in full, the Commitments have been terminated
        and the Letters of Credit shall have terminated, expired or been Collateralized,
        the Collateral shall be released from the Liens created hereby, and this
        Agreement and all obligations (other than those expressly stated to survive
        such
        termination) of the Administrative Agent and each Grantor hereunder shall
        terminate, all without delivery of any instrument or performance of any act
        by
        any party, and all rights to the Collateral shall revert to the Grantors.
        At the
        request and sole expense of any Grantor following any such termination, the
        Administrative Agent shall deliver to such Grantor any Collateral held by
        the
        Administrative Agent hereunder, and promptly execute and deliver to such
        Grantor
        such documents as such Grantor shall reasonably request to evidence such
        termination.

       

      (b)  If
        any of
        the Collateral shall be sold, transferred or otherwise disposed of by any
        Grantor in a transaction permitted by the Credit Agreement, then the
        Administrative Agent, at the request and sole expense of such Grantor, shall
        promptly execute and deliver to such Grantor all releases or other documents
        reasonably necessary or desirable for the release of the Liens created hereby
        on
        such Collateral. At the request and sole expense of the Borrower, a Subsidiary
        Guarantor shall be released from its obligations hereunder in the event that
        all
        the Capital Stock of such Subsidiary Guarantor shall be sold, transferred
        or
        otherwise disposed of in a transaction permitted by the Credit Agreement;
        provided
        that the
        Borrower shall have delivered to the Administrative Agent a written request
        for
        release identifying the relevant Subsidiary Guarantor, together with a
        certification by the Borrower stating that such transaction is in compliance
        with the Credit Agreement and the other Loan Documents.

       

      9.16 WAIVER
        OF JURY TRIAL.
        EACH GRANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY
        IN ANY
        LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
        AND FOR ANY COUNTERCLAIM THEREIN.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

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

       

      

        

          
            	 	 	 	
                    Avis
                      Budget Holdings, LLC

                    Avis
                      Budget Finance, Inc.

                    Avis
                      Car Rental Group, LLC

                     

                     

                  	 
	 	 	
                    By: 

                  	
                    /s/
                      David B. Wyshner 

                  	 
	 	 	
                    Name:

                    Title:
                      

                  	
                    David
                      B. Wyshner

                    Executive
                      Vice President, Chief Financial Officer and Treasurer

                  	 

          
 

      

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      

       

      
        	 	 	 	
                ARACS
                  LLC

                 

                 

              	 
	 	 	
                By: 

              	
                /s/
                  Robert Muhs 

              	 
	 	 	
                Name:

                Title:
                  

              	
                Robert
                  Muhs

                Vice
                  President and Assistant Secretary

              	 

      

      

       

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      

       

      
        	 	 	 	
                Avis
                  Operations, LLC

                 

                 

              	 
	 	 	
                By: 

              	
                /s/
                  Robert Muhs 

              	 
	 	 	
                Name:

                Title:
                  

              	
                Robert
                  Muhs

                Vice
                  President and Assistant Secretary

              	 

      

      

       

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      

       

      
        	 	 	 	
                Avis
                  Asia and Pacific, Limited

                Avis
                  Caribbean, Limited

                Avis
                  Enterprises, Inc.

                Avis
                  Group Holdings, LLC

                Avis
                  International, Ltd.

                PF
                  Claims Management, Ltd.

                 

                 

              	 
	 	 	
                By: 

              	
                /s/
                  David B. Wyshner 

              	 
	 	 	
                Name:

                Title:
                  

              	
                David
                  B. Wyshner 

                Chief
                  Financial Officer

              	 

      

      

       

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      

       

      
        	 	 	 	
                Avis
                  Rent A Car System, LLC

                 

                 

              	 
	 	 	
                By: 

              	
                /s/
                  David B. Wyshner 

              	 
	 	 	
                Name:

                Title:
                  

              	
                David
                  B. Wyshner 

                Chief
                  Financial Officer

              	 

      

      

       

       

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      

       

      
        	 	 	 	
                BGI
                  Leasing, Inc.

                Budget
                  Rent A Car System, Inc.

                 

                 

              	 
	 	 	
                By: 

              	
                /s/
                  David D. Blaskey 

              	 
	 	 	
                Name:

                Title:
                  

              	
                David
                  D. Blaskey 

                President

              	 

      

    

     

     

    
      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      

      
        	 	 	 	
                Cendant
                  Car Rental Operations Support, Inc.

                Wizard
                  Co., Inc.

                 

                 

              	 
	 	 	
                By: 

              	
                /s/
                  David B. Wyshner 

              	 
	 	 	
                Name:

                Title:
                  

              	
                David
                  B. Wyshner

                Executive
                  Vice President and Treasurer

              	 

      

      

      

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      

      
        	 	 	 	
                Budget
                  Truck Rental, LLC

                 

                 

              	 
	 	 	
                By: 

              	
                /s/
                  David D. Blaskey 

              	 
	 	 	
                Name:

                Title:
                  

              	
                David
                  D. Blaskey

                Senior
                  Vice PresidentIndenture, dated as of April 19, 2006

     

    Exhibit
      10.4

    AVIS
      BUDGET CAR RENTAL, LLC

     

    and

     

    AVIS
      BUDGET FINANCE, INC.,

     

    as
      Issuers,

     

    The
      GUARANTORS from time to time parties hereto

     

     

    and

     

     

    THE
      BANK
      OF NOVA SCOTIA TRUST COMPANY OF NEW YORK

     

     

    as
      Trustee

     

     

    ______

     

    INDENTURE

    DATED
      as
      of APRIL 19, 2006

     

    ______

     

    FLOATING
      RATE SENIOR NOTES DUE 2014

     

    7.625%
      SENIOR NOTES DUE 2014

     

    7.75%
      SENIOR NOTES DUE 2016

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF
      CONTENTS

     

    Page

     

    
      	
              ARTICLE
                I

              DEFINITIONS
                AND OTHER PROVISIONS OF GENERAL
                APPLICATION

            

    

    
      	
              Section
                101.

            	 	
              Definitions

            	 	
              1

            	 
	
              Section
                102.

            	 	
              Other
                Definitions

            	 	
              37

            	 
	
              Section
                103.

            	 	
              Rules
                of Construction

            	 	
              38

            	 
	
              Section
                104.

            	 	
              Incorporation
                by Reference of TIA

            	 	
              39

            	 
	
              Section
                105.

            	 	
              Conflict
                with TIA

            	 	
              39

            	 
	
              Section
                106.

            	 	
              Compliance
                Certificates and Opinions

            	 	
              40

            	 
	
              Section
                107.

            	 	
              Form
                of Documents Delivered to Trustee

            	 	
              40

            	 
	
              Section
                108.

            	 	
              Acts
                of Noteholders; Record Dates

            	 	
              41

            	 
	
              Section
                109.

            	 	
              Notices,
                etc., to Trustee and Company

            	 	
              43

            	 
	
              Section
                110.

            	 	
              Notices
                to Holders; Waiver

            	 	
              44

            	 
	
              Section
                111.

            	 	
              Effect
                of Headings and Table of Contents

            	 	
              44

            	 
	
              Section
                112.

            	 	
              Successors
                and Assigns

            	 	
              44

            	 
	
              Section
                113.

            	 	
              Separability
                Clause

            	 	
              44

            	 
	
              Section
                114.

            	 	
              Benefits
                of Indenture

            	 	
              45

            	 
	
              Section
                115.

            	 	
              GOVERNING
                LAW

            	 	
              45

            	 
	
              Section
                116.

            	 	
              Legal
                Holidays

            	 	
              45

            	 
	
              Section
                117.

            	 	
              No
                Personal Liability of Directors, Officers, Employees, Incorporators,
                Equity Holders, Members and Stockholders

            	 	
              45

            	 
	
              Section
                118.

            	 	
              Exhibits
                and Schedules

            	 	
              45

            	 
	
              Section
                119.

            	 	
              Counterparts

            	 	
              45

            	 

    

    

     

    
      	
              ARTICLE
                II 

              NOTE
                FORMS

            

    

    
      	
              Section
                201.

            	 	
              Forms
                Generally

            	 	
              46

            	 
	
              Section
                202.

            	 	
              Form
                of Trustee’s Certificate of Authentication

            	 	
              48

            	 
	
              Section
                203.

            	 	
              Restrictive
                and Global Note Legends

            	 	
              49

            	 

    

    

    

    
      	
              ARTICLE
                III

              THE
                NOTES

            

    

    
      	
              Section
                301.

            	 	
              Title
                and Terms

            	 	
              51

            	 
	
              Section
                302.

            	 	
              Denominations

            	 	
              53

            	 
	
              Section
                303.

            	 	
              Execution,
                Authentication and Delivery and Dating

            	 	
              53

            	 
	
              Section
                304.

            	 	
              Temporary
                Notes

            	 	
              54

            	 
	
              Section
                305.

            	 	
              Registrar
                and Paying Agent

            	 	
              54

            	 

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

    
 

    
      	
              Section
                306.

            	 	
              Mutilated,
                Destroyed, Lost and Stolen Notes

            	 	
              55

            	 
	
              Section
                307.

            	 	
              Payment
                of Interest Rights Preserved

            	 	
              56

            	 
	
              Section
                308.

            	 	
              Persons
                Deemed Owners

            	 	
              57

            	 
	
              Section
                309.

            	 	
              Cancellation

            	 	
              57

            	 
	
              Section
                310.

            	 	
              Computation
                of Interest

            	 	
              57

            	 
	
              Section
                311.

            	 	
              CUSIP
                Numbers, Etc

            	 	
              58

            	 
	
              Section
                312.

            	 	
              Book-Entry
                Provisions for Global Notes

            	 	
              58

            	 
	
              Section
                313.

            	 	
              Special
                Transfer Provisions

            	 	
              60

            	 
	
              Section
                314.

            	 	
              Payment
                of Additional Interest

            	 	
              62

            	 

    

    

     

    
      	
              ARTICLE
                IV 

              COVENANTS

            

    

    
      	
              Section
                401.

            	 	
              Payment
                of Principal, Premium and Interest

            	 	
              63

            	 
	
              Section
                402.

            	 	
              Maintenance
                of Office or Agency

            	 	
              63

            	 
	
              Section
                403.

            	 	
              Money
                for Payments to Be Held in Trust

            	 	
              63

            	 
	
              Section
                404.

            	 	
              [Reserved]

            	 	
              64

            	 
	
              Section
                405.

            	 	
              Reports

            	 	
              65

            	 
	
              Section
                406.

            	 	
              Statement
                as to Default

            	 	
              66

            	 
	
              Section
                407.

            	 	
              Limitation
                on Indebtedness

            	 	
              66

            	 
	
              Section
                408.

            	 	
              [Reserved]

            	 	
              69

            	 
	
              Section
                409.

            	 	
              Limitation
                on Restricted Payments

            	 	
              69

            	 
	
              Section
                410.

            	 	
              Limitation
                on Restrictions on Distributions from Restricted
                Subsidiaries

            	 	
              73

            	 
	
              Section
                411.

            	 	
              Limitation
                on Sales of Assets and Subsidiary Stock

            	 	
              75

            	 
	
              Section
                412.

            	 	
              Limitation
                on Transactions with Affiliates

            	 	
              78

            	 
	
              Section
                413.

            	 	
              Limitation
                on Liens

            	 	
              79

            	 
	
              Section
                414.

            	 	
              Future
                Subsidiary Guarantors

            	 	
              79

            	 
	
              Section
                415.

            	 	
              Purchase
                of Notes Upon a Change in Control

            	 	
              80

            	 

    

    

    

    
      	
              ARTICLE
                V 

              SUCCESSORS

            

    

    
      	
              Section
                501.

            	 	
              When
                the Company May Merge, Etc

            	 	
              81

            	 
	
              Section
                502.

            	 	
              Successor
                Company Substituted

            	 	
              82

            	 

    

    

    
      	
              ARTICLE
                VI 

              REMEDIES

            

    

    
      	
              Section
                601.

            	 	
              Events
                of Default

            	 	
              82

            	 
	
              Section
                602.

            	 	
              Acceleration
                of Maturity; Rescission and Annulment

            	 	
              85

            	 
	
              Section
                603.

            	 	
              Other
                Remedies; Collection Suit by Trustee

            	 	
              85

            	 
	
              Section
                604.

            	 	
              Trustee
                May File Proofs of Claim

            	 	
              85

            	 
	
              Section
                605.

            	 	
              Trustee
                May Enforce Claims Without Possession of Notes

            	 	
              86

            	 

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

    
 

    
      	
              Section
                606.

            	 	
              Application
                of Money Collected

            	 	
              86

            	 
	
              Section
                607.

            	 	
              Limitation
                on Suits

            	 	
              86

            	 
	
              Section
                608.

            	 	
              Unconditional
                Right of Holders to Receive Principal and Interest

            	 	
              87

            	 
	
              Section
                609.

            	 	
              Restoration
                of Rights and Remedies

            	 	
              87

            	 
	
              Section
                610.

            	 	
              Rights
                and Remedies Cumulative

            	 	
              87

            	 
	
              Section
                611.

            	 	
              Delay
                or Omission Not Waiver

            	 	
              87

            	 
	
              Section
                612.

            	 	
              Control
                by Holders

            	 	
              88

            	 
	
              Section
                613.

            	 	
              Waiver
                of Past Defaults

            	 	
              88

            	 
	
              Section
                614.

            	 	
              Undertaking
                for Costs

            	 	
              89

            	 
	
              Section
                615.

            	 	
              Waiver
                of Stay, Extension or Usury Laws

            	 	
              89

            	 

    

    

    

    
      	
              ARTICLE
                VII 

              THE
                TRUSTEE

            

    

    
      	
              Section
                701.

            	 	
              Certain
                Duties and Responsibilities

            	 	
              89

            	 
	
              Section
                702.

            	 	
              Notice
                of Defaults

            	 	
              90

            	 
	
              Section
                703.

            	 	
              Certain
                Rights of Trustee

            	 	
              90

            	 
	
              Section
                704.

            	 	
              Not
                Responsible for Recitals or Issuance of Notes

            	 	
              91

            	 
	
              Section
                705.

            	 	
              May
                Hold Notes

            	 	
              92

            	 
	
              Section
                706.

            	 	
              Money
                Held in Trust

            	 	
              92

            	 
	
              Section
                707.

            	 	
              Compensation
                and Reimbursement

            	 	
              92

            	 
	
              Section
                708.

            	 	
              Conflicting
                Interests

            	 	
              92

            	 
	
              Section
                709.

            	 	
              Corporate
                Trustee Required; Eligibility

            	 	 	
              93

            
	
              Section
                710.

            	 	
              Resignation
                and Removal; Appointment of Successor

            	 	 	
              93

            
	
              Section
                711.

            	 	
              Acceptance
                of Appointment by Successor

            	 	 	
              94

            
	
              Section
                712.

            	 	
              Merger,
                Conversion, Consolidation or Succession to Business

            	 	 	
              94

            
	
              Section
                713.

            	 	
              Preferential
                Collection of Claims Against the Company

            	 	 	
              95

            
	
              Section
                714.

            	 	
              Appointment
                of Authenticating Agent

            	 	 	
              95

            

    

    

    
      	
              ARTICLE
                VIII

              HOLDERS’
                LISTS AND REPORTS BY TRUSTEE AND THE
                COMPANY

            

    

    
      	
              Section
                801.

            	 	
              The
                Company to Furnish Trustee Names and Addresses of Holders

            	 	 	
              95

            
	
              Section
                802.

            	 	
              Preservation
                of Information; Communications to Holders

            	 	 	
              96

            
	
              Section
                803.

            	 	
              Reports
                by Trustee

            	 	 	
              96

            

    

    

    
      	
              ARTICLE
                IX 

              AMENDMENT,
                SUPPLEMENT OR WAIVER

            

    

    
      	
              Section
                901.

            	 	
              Without
                Consent of Holders

            	 	 	
              96

            
	
              Section
                902.

            	 	
              With
                Consent of Holders

            	 	 	
              97

            
	
              Section
                903.

            	 	
              Execution
                of Amendments, Supplements or Waivers

            	 	 	
              98

            

    

     

    
      
        iii

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              Section
                904.

            	 	
              Revocation
                and Effect of Consents

            	 	 	
              99

            
	
              Section
                905.

            	 	
              Conformity
                with TIA

            	 	 	
              99

            
	
              Section
                906.

            	 	
              Notation
                on or Exchange of Notes

            	 	 	
              99

            
	 	 	 	 	 	 

    

    

    

    
      	
              ARTICLE
                X

              REDEMPTION
                of NOTES

            

    

    
      	
              Section
                1001.

            	 	
              Right
                of Redemption

            	 	 	
              100

            
	
              Section
                1002.

            	 	
              Applicability
                of Article

            	 	 	
              102

            
	
              Section
                1003.

            	 	
              Election
                to Redeem; Notice to Trustee

            	 	 	
              102

            
	
              Section
                1004.

            	 	
              Selection
                by Trustee of Notes to Be Redeemed

            	 	 	
              102

            
	
              Section
                1005. 

            	 	
              Notice
                of Redemption

            	 	 	
              103

            
	
              Section
                1006.

            	 	
              Deposit
                of Redemption Price

            	 	 	
              104

            
	
              Section
                1007. 

            	 	
              Notes
                Payable on Redemption Date

            	 	 	
              104

            
	
              Section
                1008. 

            	 	
              Notes
                Redeemed in Part

            	 	 	
              104

            

    

    

    
      	
              ARTICLE
                XI 

              SATISFACTION
                AND DISCHARGE

            

    

    
      	
              Section
                1101.

            	 	
              Satisfaction
                and Discharge of Indenture

            	 	 	
              105

            
	
              Section
                1102.

            	 	
              Application
                of Trust Money

            	 	 	
              106

            

    

    

    
      	
              ARTICLE
                XII 

              DEFEASANCE
                OR COVENANT DEFEASANCE

            

    

    
      	
              Section
                1201. 

            	 	
              The
                Company’s Option to Effect Defeasance or Covenant
                Defeasance

            	 	 	
              106

            
	
              Section
                1202. 

            	 	
              Defeasance
                and Discharge

            	 	 	
              106

            
	
              Section
                1203. 

            	 	
              Covenant
                Defeasance 

            	 	 	
              107

            
	
              Section
                1204.

            	 	
              Conditions
                to Defeasance or Covenant Defeasance

            	 	 	
              107

            
	
              Section
                1205.

            	 	
              Deposited
                Money and U.S. Government Obligations to Be Held in Trust; Other
                Miscellaneous Provisions

            	 	 	
              109

            
	
              Section
                1206.

            	 	
              Reinstatement

            	 	 	
              109

            
	
              Section
                1207.

            	 	
              Repayment
                to the Company

            	 	 	
              110

            

    

    

    
      	
              ARTICLE
                XIII 

              GUARANTEES

            

    

    
      	
              Section
                1301.

            	 	
              Guarantees
                Generally

            	 	 	
              110

            
	
              Section
                1302. 

            	 	
              Continuing
                Guarantees

            	 	 	
              112

            
	
              Section
                1303. 

            	 	
              Release
                of Guarantees 

            	 	 	
              112

            
	
              Section
                1304.

            	 	
              [Reserved]

            	 	 	
              113

            
	
              Section
                1305.

            	 	
              Waiver
                of Subrogation

            	 	 	
              113

            

    

     

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

    

    
      	
              Section
                1306.

            	 	
              Notation
                Not Required

            	 	 	
              113

            
	
              Section
                1307.

            	 	
              Successors
                and Assigns of Guarantors

            	 	 	
              113

            
	
              Section
                1308.

            	 	
              Execution
                and Delivery of Guarantees

            	 	 	
              113

            
	
              Section
                1309.

            	 	
              Notices

            	 	 	
              114

            

    

    

    

     

    
      	
              Exhibit
                A 

            	
              Form
                of Initial Floating Rate Note 

            
	
              Exhibit
                B

            	
              Form
                of Initial 7.625% Note

            
	
              Exhibit
                C

            	
              Form
                of Initial 7.75% Note

            
	
              Exhibit
                D

            	
              Form
                of Exchange Floating Rate Note

            
	
              Exhibit
                E

            	
              Form
                of Exchange 7.625% Note

            
	
              Exhibit
                F

            	
              Form
                of Exchange 7.75% Note

            
	
              Exhibit
                G

            	
              Form
                of Certificate of Beneficial Ownership 

            
	
              Exhibit
                H

            	
              Form
                of Regulation S Certificate 

            
	
              Exhibit
                I

            	
              Form
                of Supplemental Indenture in Respect of Subsidiary Guarantees
                

            
	
              Exhibit
                J

            	
              Form
                of Certificate from Acquiring Institutional Accredited Investors
                

            
	
              Exhibit
                K

            	
              List
                of Agreements Named in Section
                412(b)(iv)

            

    

    

     

    
      
        v

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

      Certain
        Sections of this Indenture relating to Sections 310 through 318 

      inclusive
        of the Trust Indenture Act of 1939:

       

       

      
        	 	
                Trust
                  Indenture Act Section

              	 	
                Indenture
                  Section

              	 
	 	
                §
                  310(a)(1)

              	 	
                709

              	 
	 	
                (a)(2)

              	 	
                709

              	 
	 	
                (a)(3)

              	 	
                Not
                  Applicable

              	 
	 	
                (a)(4)

              	 	
                Not
                  Applicable

              	 
	 	
                (b)

              	 	
                708

              	 
	 	
                §
                  311(a)

              	 	
                713

              	 
	 	
                (b)

              	 	
                713

              	 
	 	
                §
                  312(a)

              	 	
                801,

                802

              	 
	 	
                (b)

              	 	
                802

              	 
	 	
                (c)

              	 	
                802

              	 
	 	
                §
                  313(a)

              	 	
                803

              	 
	 	
                (b)

              	 	
                803

              	 
	 	
                (c)

              	 	
                803

              	 
	 	
                (d)

              	 	
                803

              	 
	 	
                §
                  314(a)

              	 	
                405

              	 
	 	
                (a)(4)

              	 	
                106,

                406

              	 
	 	
                (b)

              	 	
                Not
                  Applicable

              	 
	 	
                (c)(1)

              	 	
                106

              	 
	 	
                (c)(2)

              	 	
                106

              	 
	 	
                (c)(3)

              	 	
                Not
                  Applicable

              	 
	 	
                (d)

              	 	
                Not
                  Applicable

              	 
	 	
                (e)

              	 	
                106

              	 
	 	
                §
                  315(a)

              	 	
                701

              	 
	 	
                (b)

              	 	
                702,

                803

              	 
	 	
                (c)

              	 	
                701

              	 
	 	
                (d)

              	 	
                701

              	 
	 	
                (d)(1)

              	 	
                701

              	 
	 	
                (d)(2)

              	 	
                701

              	 
	 	
                (d)(3)

              	 	
                612,

                701

              	 
	 	
                (e)

              	 	
                614

              	 
	 	
                §
                  316(a)

              	 	
                612,

                613

              	 
	 	
                (a)(1)(A)

              	 	
                602,

                612

              	 
	 	
                (a)(1)(B)

              	 	
                613

              	 
	 	
                (a)(2)

              	 	
                Not
                  Applicable

              	 
	 	
                (b)

              	 	
                608

              	 

      

       

       

      
        
          i

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
      

      
        
          	
                	
                  Trust
                    Indenture Act Section

                	 	
                  Indenture
                    Section

                	 

        

        
          	
                	
                  (c)

                	 	
                  108

                	 
	 	
                  §
                    317(a)(1)

                	 	
                  603

                	 
	 	
                  (a)(2)

                	 	
                  604

                	 
	 	
                  (b)

                	 	
                  403

                	 
	 	
                  §
                    318(a)

                   

                	 	
                  105

                	 

        

         

         

         

        _____________________________

         

        This
          cross-reference table shall not for any purpose be deemed to be part of
          this
          Indenture.

      

    
      
        ii

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

    INDENTURE,
      dated as of April 19, 2006 (as amended, supplemented or otherwise modified
      from
      time to time, this “Indenture”),
      among
      Avis Budget Car Rental, LLC, a limited liability company organized under the
      laws of the state of Delaware (the “Company”),
      and
      Avis Budget Finance, Inc., a corporation organized under the laws of the State
      of Delaware (together with the Company, “the Issuers”),
      the
      guarantors from time to time parties hereto (the “Guarantors”)
      and
      The Bank of Nova Scotia Trust Company of New York, as trustee (the “Trustee”).

     

    RECITALS
      OF THE ISSUERS

     

    The
      Issuers have duly authorized the execution and delivery of this Indenture to
      provide for the issuance of the Notes.

     

    All
      things necessary to make the Original Notes, when executed and delivered by
      the
      Issuers and authenticated and delivered by the Trustee hereunder and duly issued
      by the Issuers, the valid several obligations of the Issuers, and to make this
      Indenture a valid agreement of the Issuers in accordance with the terms of
      the
      Original Notes and this Indenture, have been done.

     

    NOW,
      THEREFORE, THIS INDENTURE WITNESSETH:

     

    For
      and
      in consideration of the premises and the purchase of the Notes by the Holders
      thereof, it is mutually agreed, for the benefit of all Holders of the Notes,
      as
      follows:

     

    ARTICLE
      I  

     

    DEFINITIONS
      AND OTHER PROVISIONS 

    OF
      GENERAL APPLICATION

     

    Section
      101.  Definitions.

     

    “7.625%
      Notes”
means
      the Issuers’ 7.625% Senior Notes due 2014.

     

    “7.75%
      Notes”
means
      the Issuers’ 7.75% Senior Notes due 2016.

     

    “Acquired
      Indebtedness”
means
      Indebtedness of a Person (i) existing at the time such Person becomes a
      Subsidiary or (ii) assumed in connection with the acquisition of assets from
      such Person, in each case other than Indebtedness Incurred in connection with,
      or in contemplation of, such Person becoming a Subsidiary or such acquisition.
      Acquired Indebtedness shall be deemed to be Incurred on the date of the related
      acquisition of assets from any Person or the date the acquired Person becomes
      a
      Subsidiary.

     

    “Additional
      Assets”
means
      (i) any property or assets that replace the property or assets that are the
      subject of an Asset Disposition; (ii) any property or assets (other than
      Indebtedness and Capital Stock) used or to be used by the Company or a
      Restricted Subsidiary or otherwise useful in a Related Business (including
      any
      capital expenditures on any property or assets already so used); (iii) the
      Capital Stock of a Person that is engaged in a Related Business and becomes
      a
      Restricted Subsidiary as a result of the acquisition of such Capital Stock
      by
      the 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    Company
      or another Restricted Subsidiary; or (iv) Capital Stock of any Person that
      at
      such time is a Restricted Subsidiary acquired from a third party.

     

    “Additional
      Notes”
means
      any notes issued under this Indenture in addition to the Original Notes (other
      than any Notes issued pursuant to Section
      304,
      305,
      306,
      312(c),
      312(d)
      or
1008).

     

    “Affiliate”
of
      any
      specified Person means any other Person, directly or indirectly, controlling
      or
      controlled by or under direct or indirect common control with such specified
      Person. For the purposes of this definition, “control” when used with respect to
      any Person means the power to direct the management and policies of such Person,
      directly or indirectly, whether through the ownership of voting securities,
      by
      contract or otherwise; and the terms “controlling” and “controlled” have
      meanings correlative to the foregoing.

     

    “Asset
      Disposition”
means
      any sale, lease (other than an operating lease entered into in the ordinary
      course of business), transfer or other disposition of shares of Capital Stock
      of
      a Restricted Subsidiary (other than directors’ qualifying shares, or (in the
      case of a Foreign Subsidiary) to the extent required by applicable law),
      property or other assets (each referred to for the purposes of this definition
      as a “disposition”)
      by the
      Company or any of its Restricted Subsidiaries (including any disposition by
      means of a merger, consolidation or similar transaction), other than (i) a
      disposition to the Company or a Restricted Subsidiary, (ii) a sale or other
      disposition in the ordinary course of business, (iii) the sale or discount
      (with
      or without recourse, and on customary or commercially reasonable terms) of
      accounts receivable or notes receivable arising in the ordinary course of
      business, or the conversion or exchange of accounts receivable for notes
      receivable, (iv) any Restricted Payment Transaction, (v) a disposition that
      is
      governed by Article
      V,
      (vi)
      any Financing Disposition, (vii) any “fee in lieu” or other disposition of
      assets to any governmental authority or agency that continue in use by the
      Company or any Restricted Subsidiary, so long as the Company or any Restricted
      Subsidiary may obtain title to such assets upon reasonable notice by paying
      a
      nominal fee, (viii) any exchange of property pursuant to or intended to qualify
      under Section 1031 (or any successor section) of the Code, or any exchange
      of
      equipment to be leased, rented or otherwise used in a Related Business, (ix)
      any
      financing transaction with respect to property built or acquired by the Company
      or any Restricted Subsidiary after the Issue Date, including without limitation
      any sale/leaseback transaction or asset securitization, (x) any disposition
      arising from foreclosure, condemnation or similar action with respect to any
      property or other assets, or exercise of termination rights under any lease,
      license, concession or other agreement, (xi) any disposition of Capital Stock,
      Indebtedness or other securities of an Unrestricted Subsidiary, (xii) a
      disposition of Capital Stock of a Restricted Subsidiary pursuant to an agreement
      or other obligation with or to a Person (other than the Company or a Restricted
      Subsidiary) from whom such Restricted Subsidiary was acquired, or from whom
      such
      Restricted Subsidiary acquired its business and assets (having been newly formed
      in connection with such acquisition), entered into in connection with such
      acquisition, (xiii) a disposition of not more than 5% of the outstanding Capital
      Stock of a Foreign Subsidiary that has been approved by the Board of Directors,
      (xiv) any disposition or series of related dispositions for aggregate
      consideration not to exceed $50.0 million, (xv) the creation of a Permitted
      Lien and dispositions in connection with Permitted Liens,
      (xvi) dispositions of Investments or receivables, in each case in
      connection with the compromise, settlement or collection thereof in the ordinary
      course of business in bankruptcy or similar proceedings, 

     

    
      
        
        

      

      
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    (xvii) the
      unwinding of any Hedging Obligation, or (xviii) the licensing of any
      intellectual property.

     

    “Average
      Book Value”
means,
      for any period, the amount equal to (x) the sum of the respective book values
      of
      Rental Vehicles of the Company and its Restricted Subsidiaries as of the end
      of
      each of the most recent thirteen fiscal months of the Company that have ended
      at
      or prior to the end of such period, divided by (y) 13.

     

    “Average
      Interest Rate”
means,
      for any period, the amount equal to (x) the total interest expense of the
      Company and its Restricted Subsidiaries for such period (excluding any interest
      expense on any Indebtedness of any Special Purpose Subsidiary that is a
      Restricted Subsidiary directly or indirectly Incurred to finance or refinance
      the acquisition of, or secured by, Rental Vehicles and/or related rights and/or
      assets), divided by (y) the Average Principal Amount of Indebtedness of the
      Company and its Restricted Subsidiaries for such period (excluding any
      Indebtedness of any Special Purpose Subsidiary that is a Restricted Subsidiary
      directly or indirectly Incurred to finance or refinance the acquisition of,
      or
      secured by, Rental Vehicles and/or related rights and/or assets).

     

    “Average
      Principal Amount”
means,
      for any period, the amount equal to (x) the sum of the respective aggregate
      outstanding principal amounts of the applicable Indebtedness as of the end
      of
      each of the most recent thirteen fiscal months of the Company that have ended
      at
      or prior to the end of such period, divided by (y) 13.

     

    “Authenticating
      Agent”
means
      any Person authorized by the Trustee pursuant to Section
      714
      to act
      on behalf of the Trustee to authenticate Notes of one or more
      series.

     

    “Bank
      Indebtedness”
means
      any and all amounts, whether outstanding on the Issue Date or thereafter
      incurred, payable under or in respect of any Credit Facility, including without
      limitation principal, premium (if any), interest (including interest accruing
      on
      or after the filing of any petition in bankruptcy or for reorganization relating
      to the Company or any Restricted Subsidiary whether or not a claim for
      post-filing interest is allowed in such proceedings), fees, charges, expenses,
      reimbursement obligations, guarantees, other monetary obligations of any nature
      and all other amounts payable thereunder or in respect thereof.

     

    “Board
      of Directors”
means,
      for any Person, the board of directors or other governing body of such Person
      or, if such Person is owned or managed by a single entity, the board of
      directors or other governing body of such entity, or, in either case, any
      committee thereof duly authorized to act on behalf of such board or governing
      body. Unless otherwise provided, “Board of Directors” means the Board of
      Directors of the Company.

     

    “Business
      Day”
means
      a
      day other than a Saturday, Sunday or other day on which commercial banking
      institutions are authorized or required by law to close in New York City (or
      any
      other city in which a Paying Agent maintains its office).

     

    “Capital
      Stock”
of
      any
      Person means any and all shares of, rights to purchase, warrants or options
      for,
      or other equivalents of or interests in (however designated) equity of

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    such
      Person, including any Preferred Stock, but excluding any debt securities
      convertible into such equity.

     

    “Capitalized
      Lease Obligation”
means
      an obligation that is required to be classified and accounted for as a
      capitalized lease for financial reporting purposes in accordance with GAAP.
      The
      Stated Maturity of any Capitalized Lease Obligation shall be the date of the
      last payment of rent or any other amount due under the related
      lease.

     

    “Cash
      Equivalents”
means
      any of the following: (a) securities issued or fully guaranteed or insured
      by
      the United States of America or any agency or instrumentality thereof, (b)
      marketable general obligations issued by any state of the United States of
      America or any political subdivision of any such state or any public
      instrumentality thereof having a credit rating of “A” or better at the time of
      acquisition from either S&P or Moody’s, (c) time deposits, certificates
      of deposit or bankers’ acceptances of (i) any lender under a Senior Credit
      Facility or any affiliate thereof or (ii) any commercial bank having capital
      and
      surplus in excess of $500,000,000 and the commercial paper of the holding
      company of which is rated at least A-2 or the equivalent thereof by S&P or
      at least P-2 or the equivalent thereof by Moody’s (or if at such time neither is
      issuing ratings, then a comparable rating of another nationally recognized
      rating agency), (d) money market instruments, commercial paper or other
      short-term obligations rated at least A-2 or the equivalent thereof by S&P
      or at least P-2 or the equivalent thereof by Moody’s (or if at such time neither
      is issuing ratings, then a comparable rating of another nationally recognized
      rating agency), (e) investments in money market funds subject to the risk
      limiting conditions of Rule 2a-7 or any successor rule of the SEC under the
      Investment Company Act of 1940, as amended and (f) investments similar to any
      of
      the foregoing denominated in foreign currencies approved by the Board of
      Directors.

     

    “Cendant”
means
      Cendant Corporation, a Delaware corporation, and any successor in interest
      thereto.

     

    “Cendant
      Subsidiary”
means
      a
      Subsidiary of Cendant Corporation.

     

    “Change
      of Control”
      means:

     

    (i)  any
      “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act),
      other than one or more Permitted Holders or a Parent, becomes the “beneficial
      owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or
      indirectly, of more than 50% of the total voting power of the Voting Stock
      of
      the Company, provided
      that (x)
      so long as the Company is a Subsidiary of any Parent, no “person” shall be
      deemed to be or become a “beneficial owner” of more than 50% of the total voting
      power of the Voting Stock of the Company unless such “person” shall be or become
      a “beneficial owner” of more than 50% of the total voting power of the Voting
      Stock of such Parent and (y) any Voting Stock of which any Permitted Holder
      is
      the “beneficial owner” shall not in any case be included in any Voting Stock of
      which any such “person” is the “beneficial owner”;

     

    (ii)  the
      Company or the Parent merges or consolidates with or into, or sells or transfers
      (in one or a series of related transactions) all or substantially all of the
      assets of 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    the
      Company and its Restricted Subsidiaries, taken as a whole, to, another Person
      (other than one or more Permitted Holders) and any “person” (as defined in
      clause (i) above), other than one or more Permitted Holders or any Parent,
      is or
      becomes the “beneficial owner” (as so defined), directly or indirectly, of more
      than 50% of the total voting power of the Voting Stock of the surviving Person
      in such merger or consolidation, or the transferee Person in such sale or
      transfer of assets, as the case may be, provided
      that (x)
      so long as such surviving or transferee Person is a Subsidiary of a parent
      Person, no “person” shall be deemed to be or become a “beneficial owner” of more
      than 50% of the total voting power of the Voting Stock of such surviving or
      transferee Person unless such “person” shall be or become a “beneficial owner”
of more than 50% of the total voting power of the Voting Stock of such parent
      Person and (y) any Voting Stock of which any Permitted Holder is the “beneficial
      owner” shall not in any case be included in any Voting Stock of which any such
“person” is the beneficial owner; or

     

    (iii)  during
      any period of two consecutive years (during which period the Company has been
      a
      party to this Indenture), individuals who at the beginning of such period were
      members of the Board of Directors of the Company (together with any new members
      thereof whose election by such Board of Directors or whose nomination for
      election by holders of Capital Stock of the Company was approved by one or
      more
      Permitted Holders or by a vote of a majority of the members of such Board of
      Directors then still in office who were either members thereof at the beginning
      of such period or whose election or nomination for election was previously
      so
      approved) cease for any reason to constitute a majority of such Board of
      Directors then in office.

     

    “Clearstream”
means
      Clearstream Banking, société anonyme, or any successor securities clearing
      agency.

     

    “Code”
means
      the Internal Revenue Code of 1986, as amended.

     

    “Commodities
      Agreement”
means,
      in respect of a Person, any commodity futures contract, forward contract, option
      or similar agreement or arrangement (including derivative agreements or
      arrangements), as to which such Person is a party or beneficiary.

     

    “Company”
means
      Avis Budget Car Rental, LLC, and any and all successors thereto. 

     

    “Company
      Request,”
      “Company
      Order”
and
      “Company
      Consent”
mean,
      respectively, a written request, order or consent signed in the name of the
      Company by an Officer of the Company.

     

    “Consolidated
      Coverage Ratio”
as
      of
      any date of determination means the ratio of (i) the aggregate amount of
      Consolidated EBITDA for the period of the most recent four consecutive fiscal
      quarters ending prior to the date of such determination for which consolidated
      financial statements of the Company are available to (ii) Consolidated Interest
      Expense for such four fiscal quarters (in each of the foregoing clauses (i)
      and
      (ii), determined for each fiscal quarter of the four fiscal quarters ending
      prior to the Issue Date); provided,
      that

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (1)  if
      since
      the beginning of such period the Company or any Restricted Subsidiary has
      Incurred any Indebtedness that remains outstanding on such date of determination
      or if the transaction giving rise to the need to calculate the Consolidated
      Coverage Ratio is an Incurrence of Indebtedness, Consolidated EBITDA and
      Consolidated Interest Expense for such period shall be calculated after giving
      effect on a pro forma basis to such Indebtedness as if such Indebtedness had
      been Incurred on the first day of such period (except that in making such
      computation, the amount of Indebtedness under any revolving credit facility
      outstanding on the date of such calculation shall be computed based on (A)
      the
      average daily balance of such Indebtedness during such four fiscal quarters
      or
      such shorter period for which such facility was outstanding or (B) if such
      facility was created after the end of such four fiscal quarters, the average
      daily balance of such Indebtedness during the period from the date of creation
      of such facility to the date of such calculation);

     

    (2)  if
      since
      the beginning of such period the Company or any Restricted Subsidiary has
      repaid, repurchased, redeemed, defeased or otherwise acquired, retired or
      discharged any Indebtedness that is no longer outstanding on such date of
      determination or the Indebtedness of any Special Purpose Subsidiary which is
      an
      Unrestricted Subsidiary is reduced (each, a “Discharge”)
      or if
      the transaction giving rise to the need to calculate the Consolidated Coverage
      Ratio involves a Discharge of Indebtedness (in each case other than Indebtedness
      Incurred under any revolving credit facility unless such Indebtedness has been
      permanently repaid), Consolidated EBITDA and Consolidated Interest Expense
      for
      such period shall be calculated after giving effect on a pro forma basis to
      such
      Discharge of such Indebtedness, including with the proceeds of such new
      Indebtedness, as if such Discharge had occurred on the first day of such
      period;

     

    (3)  if
      since
      the beginning of such period the Company or any Restricted Subsidiary shall
      have
      disposed of any company, any business or any group of assets constituting an
      operating unit of a business (any such disposition, a “Sale”),
      the
      Consolidated EBITDA for such period shall be reduced by an amount equal to
      the
      Consolidated EBITDA (if positive) attributable to the assets that are the
      subject of such Sale for such period or increased by an amount equal to the
      Consolidated EBITDA (if negative) attributable thereto for such period and
      Consolidated Interest Expense for such period shall be reduced by an amount
      equal to (A) the Consolidated Interest Expense attributable to any Indebtedness
      of the Company or any Restricted Subsidiary repaid, repurchased, redeemed,
      defeased or otherwise acquired, retired or discharged with respect to the
      Company and its continuing Restricted Subsidiaries in connection with such
      Sale
      for such period (including but not limited to through the assumption of such
      Indebtedness by another Person) plus (B) if the Capital Stock of any Restricted
      Subsidiary is sold, the Consolidated Interest Expense for such period
      attributable to the Indebtedness of such Restricted Subsidiary to the extent
      the
      Company and its continuing Restricted Subsidiaries are no longer liable for
      such
      Indebtedness after such Sale;

     

    (4)  if
      since
      the beginning of such period the Company or any Restricted Subsidiary (by
      merger, consolidation or otherwise) shall have made an Investment in any Person
      that thereby becomes a Restricted Subsidiary, or otherwise acquired any company,
      any business or any group of assets constituting an operating unit of a
      business, 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    including
      any such Investment or acquisition occurring in connection with a transaction
      causing a calculation to be made hereunder (any such Investment or acquisition,
      a “Purchase”),
      Consolidated EBITDA and Consolidated Interest Expense for such period shall
      be
      calculated after giving pro forma effect thereto (including the Incurrence
      of
      any related Indebtedness) as if such Purchase occurred on the first day of
      such
      period; and

     

    (5)  if
      since
      the beginning of such period any Person became a Restricted Subsidiary or was
      merged or consolidated with or into the Company or any Restricted Subsidiary,
      and since the beginning of such period such Person shall have Discharged any
      Indebtedness or made any Sale or Purchase that would have required an adjustment
      pursuant to clause (2), (3) or (4) above if made by the Company or a Restricted
      Subsidiary since the beginning of such period, Consolidated EBITDA and
      Consolidated Interest Expense for such period shall be calculated after giving
      pro forma effect thereto as if such Discharge, Sale or Purchase occurred on
      the
      first day of such period.

     

    For
      purposes of this definition, whenever pro forma effect is to be given to any
      Sale, Purchase or other transaction, or the amount of income or earnings
      relating thereto and the amount of Consolidated Interest Expense associated
      with
      any Indebtedness Incurred or repaid, repurchased, redeemed, defeased or
      otherwise acquired, retired or discharged in connection therewith, the pro
      forma
      calculations in respect thereof (including without limitation in respect of
      anticipated cost savings or synergies relating to any such Sale, Purchase or
      other transaction) shall be as determined in good faith by the Chief Financial
      Officer or an authorized Officer of the Company. If any Indebtedness bears
      a
      floating rate of interest and is being given pro forma effect, the interest
      expense on such Indebtedness shall be calculated as if the rate in effect on
      the
      date of determination had been the applicable rate for the entire period (taking
      into account any Interest Rate Agreement applicable to such Indebtedness).
      If
      any Indebtedness bears, at the option of the Company or a Restricted Subsidiary,
      a rate of interest based on a prime or similar rate, a eurocurrency interbank
      offered rate or other fixed or floating rate, and such Indebtedness is being
      given pro forma effect, the interest expense on such Indebtedness shall be
      calculated by applying such optional rate as the Company or such Restricted
      Subsidiary may designate. If any Indebtedness that is being given pro forma
      effect was Incurred under a revolving credit facility, the interest expense
      on
      such Indebtedness shall be computed based upon the average daily balance of
      such
      Indebtedness during the applicable period. Interest on a Capitalized Lease
      Obligation shall be deemed to accrue at an interest rate determined in good
      faith by a responsible financial or accounting Officer of the Company to be
      the
      rate of interest implicit in such Capitalized Lease Obligation in accordance
      with GAAP.

     

    “Consolidated
      EBITDA”
means,
      for any period, the Consolidated Net Income for such period, plus the following
      to the extent deducted in calculating such Consolidated Net Income, without
      duplication: (i) provision for all taxes (whether or not paid, estimated or
      accrued) based on income, profits or capital, (ii) Consolidated Interest Expense
      and any Special Purpose Financing Fees, (iii) depreciation (excluding
      Consolidated Vehicle Depreciation), amortization (including but not limited
      to
      amortization of goodwill and intangibles and amortization and write-off of
      financing costs) and all other non-cash charges or non-cash losses, (iv) any
      expenses or charges related to any Equity Offering, Investment or Indebtedness
      permitted by this Indenture (whether or not consummated or incurred), and (v)
      the amount of any minority interest expense.

     

    
      
        
        

      

      
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    “Consolidated
      Interest Expense”
means,
      for any period, (i) the total interest expense of the Company and its Restricted
      Subsidiaries to the extent deducted in calculating Consolidated Net Income,
      net
      of any interest income of the Company and its Restricted Subsidiaries, including
      without limitation any such interest expense consisting of (a) interest expense
      attributable to Capitalized Lease Obligations, (b) amortization of debt
      discount, (c) interest in respect of Indebtedness of any other Person that
      has
      been Guaranteed by the Company or any Restricted Subsidiary, but only to the
      extent that such interest is actually paid by the Company or any Restricted
      Subsidiary, (d) non-cash interest expense, (e) the interest portion of any
      deferred payment obligation and (f) commissions, discounts and other fees and
      charges owed with respect to letters of credit and bankers’ acceptance
      financing, plus (ii) Preferred Stock dividends paid in cash in respect of
      Disqualified Stock of the Company held by Persons other than the Company or
      a
      Restricted Subsidiary and minus (iii) to the extent otherwise included in such
      interest expense referred to in clause (i) above, (x) Consolidated Vehicle
      Interest Expense and (y) amortization or write-off of financing costs, in each
      case under clauses (i) through (iii) as determined on a Consolidated basis
      in
      accordance with GAAP (to the extent applicable, in the case of Consolidated
      Vehicle Interest Expense); provided,
      that
      gross interest expense shall be determined after giving effect to any net
      payments made or received by the Company and its Restricted Subsidiaries with
      respect to Interest Rate Agreements; provided,
      further,
      that
      notwithstanding the definition of “Consolidated Vehicle Interest Expense,”
“Consolidated Interest Expense” shall include the interest expense in respect of
      Indebtedness that is secured by Liens incurred pursuant to clause (v) of the
      definition of “Permitted Liens.”

     

    “Consolidated
      Net Income”
means,
      for any period, the net income (loss) of the Company and its Restricted
      Subsidiaries, determined on a Consolidated basis in accordance with GAAP and
      before any reduction in respect of Preferred Stock dividends; provided,
      that
      there shall not be included in such Consolidated Net Income:

     

    (i)  any
      net
      income (loss) of any Person if such Person is not a Restricted Subsidiary,
      except that (A) subject to the limitations contained in clause (iii) below,
      the
      Company’s equity in the net income of any such Person for such period shall be
      included in such Consolidated Net Income up to the aggregate amount actually
      distributed by such Person during such period to the Company or a Restricted
      Subsidiary as a dividend or other distribution (subject, in the case of a
      dividend or other distribution to a Restricted Subsidiary, to the limitations
      contained in clause (ii) below) and (B) the Company’s equity in the net loss of
      such Person shall be included to the extent of the aggregate Investment of
      the
      Company or any of its Restricted Subsidiaries in such Person;

     

    (ii)  solely
      for purposes of determining the amount available for Restricted Payments under
      Section
      409(a)(3)(A),
      any net
      income (loss) of any Restricted Subsidiary that is not a Subsidiary Guarantor
      if
      such Restricted Subsidiary is subject to restrictions, directly or indirectly,
      on the payment of dividends or the making of similar distributions by such
      Restricted Subsidiary, directly or indirectly, to the Company by operation
      of
      the terms of such Restricted Subsidiary’s charter or any agreement, instrument,
      judgment, decree, order, statute or governmental rule or regulation applicable
      to such Restricted Subsidiary or its stockholders (other than (x) restrictions
      that have been waived or otherwise released, (y) restrictions pursuant to the
      Notes or this Indenture and (z) restrictions in effect on the Issue Date with
      respect to a Restricted Subsidiary and other 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    restrictions
      with respect to such Restricted Subsidiary that taken as a whole are not
      materially less favorable to the Noteholders than such restrictions in effect
      on
      the Issue Date), except that (A) subject to the limitations contained in clause
      (iii) below, the Company’s equity in the net income of any such Restricted
      Subsidiary for such period shall be included in such Consolidated Net Income
      up
      to the aggregate amount of any dividend or distribution that was or that could
      have been made by such Restricted Subsidiary during such period to the Company
      or another Restricted Subsidiary (subject, in the case of a dividend that could
      have been made to another Restricted Subsidiary, to the limitation contained
      in
      this clause) and (B) the net loss of such Restricted Subsidiary shall be
      included to the extent of the aggregate Investment of the Company or any of
      its
      other Restricted Subsidiaries in such Restricted Subsidiary;

     

    (iii)  any
      gain
      or loss realized upon the sale or other disposition of any asset of the Company
      or any Restricted Subsidiary (including pursuant to any sale/leaseback
      transaction) that is not sold or otherwise disposed of in the ordinary course
      of
      business (as determined in good faith by the Board of Directors);

     

    (iv)  the
      cumulative effect of a change in accounting principles;

     

    (v)  all
      deferred financing costs written off and premiums paid in connection with any
      early extinguishment of Indebtedness;

     

    (vi)  any
      unrealized gains or losses in respect of Currency Agreements;

     

    (vii)  any
      unrealized foreign currency transaction gains or losses in respect of
      Indebtedness of any Person denominated in a currency other than the functional
      currency of such Person;

     

    (viii)  any
      non-cash compensation charge arising from any grant of stock, stock options
      or
      other equity based awards;

     

    (ix)  to
      the
      extent otherwise included in Consolidated Net Income, any unrealized foreign
      currency translation or transaction gains or losses in respect of Indebtedness
      or other obligations of the Company or any Restricted Subsidiary owing to the
      Company or any Restricted Subsidiary;

     

    (x)  any
      non-cash charge, expense or other impact attributable to application of the
      purchase method of accounting (including the total amount of depreciation and
      amortization, cost of sales or other non-cash expense resulting from the
      write-up of assets to the extent resulting from such purchase accounting
      adjustments); and

     

    (xi)  any
      item
      classified as an extraordinary, unusual or nonrecurring gain, loss or charge,
      including fees, expenses and charges associated with the Separation Transactions
      and any acquisition, merger or consolidation after the Issue Date.

     

    For
      purposes of this definition, whenever pro forma effect is to be given to any
      Sale, Purchase or other transaction, or the amount of income or earnings
      relating thereto, the pro 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    forma
      calculations in respect thereof (including without limitation in respect of
      anticipated cost savings or synergies relating to any such Sale, Purchase or
      other transaction) shall be as determined in good faith by a responsible
      financial or accounting Officer of the Company.

     

    “Consolidated
      Quarterly Tangible Assets”
means,
      as of any date of determination, the total assets less the sum of the goodwill,
      net, and “other intangibles, net,” in each case reflected on the consolidated
      balance sheet of the Company and its Restricted Subsidiaries as at the end
      of
      any fiscal quarter of the Company for which such a balance sheet is available,
      determined on a Consolidated basis in accordance with GAAP (and, in the case
      of
      any determination relating to any incurrence of Indebtedness or any Investment,
      on a pro forma basis including any property or assets being acquired in
      connection therewith).

     

    “Consolidated
      Secured Indebtedness”
means,
      as of any date of determination, an amount equal to the Consolidated Total
      Indebtedness as of such date that in each case the payment of which is then
      secured by Liens on property or assets of the Company and its Restricted
      Subsidiaries (other than property or assets held in a defeasance or similar
      trust or arrangement for the benefit of the Indebtedness secured
      thereby).

     

    “Consolidated
      Secured Leverage Ratio”
means,
      as of any date of determination, the ratio of (x) Consolidated Secured
      Indebtedness as at such date to (y) the aggregate amount of Consolidated EBITDA
      for the period of the most recent four consecutive fiscal quarters ending prior
      to the date of such determination for which consolidated financial statements
      of
      the Company are available (determined for each fiscal quarter (or portion
      thereof) of the four fiscal quarters ending prior to the Issue Date),
provided,
      that:

     

    (1)  if
      since
      the beginning of such period the Company or any Restricted Subsidiary has
      Incurred any Consolidated Secured Indebtedness that remains outstanding on
      such
      date of determination or if the transaction giving rise to the need to calculate
      the Consolidated Secured Leverage Ratio is an Incurrence of Consolidated Secured
      Indebtedness, Consolidated EBITDA and Consolidated Secured Indebtedness (to
      the
      extent it does not already include such Incurrence of Consolidated Secured
      Indebtedness) for such period shall be calculated after giving effect on a
      pro
      forma basis to such Consolidated Secured Indebtedness as if such Consolidated
      Secured Indebtedness had been Incurred on the first day of such period (except
      that in making such computation, the amount of Consolidated Secured Indebtedness
      under any revolving credit facility outstanding on the date of such calculation
      shall be computed based on (A) the average daily balance of such Consolidated
      Secured Indebtedness during such four fiscal quarters or such shorter period
      for
      which such facility was outstanding or (B) if such facility was created after
      the end of such four fiscal quarters, the average daily balance of such
      Indebtedness during the period from the date of creation of such facility to
      the
      date of such calculation);  

     

    (2)  if
      since
      the beginning of such period Consolidated Secured Indebtedness has been
      Discharged or if the transaction giving rise to the need to calculate the
      Consolidated Secured Leverage Ratio involves a Discharge of Consolidated Secured
      Indebtedness (in each case other than Indebtedness Incurred under any revolving
      credit facility unless such Indebtedness has been permanently repaid),
      Consolidated EBITDA 

     

    
      
        
        

      

      
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    and
      Consolidated Secured Indebtedness (to the extent it does not already exclude
      such Discharge of Consolidated Secured Indebtedness) for such period shall
      be
      calculated after giving effect on a pro forma basis to such Discharge of such
      Consolidated Secured Indebtedness, including with the proceeds of such new
      Consolidated Secured Indebtedness, as if such Discharge had occurred on the
      first day of such period; 

     

    (3)  if
      since
      the beginning of such period the Company or any Restricted Subsidiary shall
      have
      made a Sale, the Consolidated EBITDA for such period shall be reduced by an
      amount equal to the Consolidated EBITDA (if positive) attributable to the assets
      that are the subject of such Sale for such period or increased by an amount
      equal to the Consolidated EBITDA (if negative) attributable thereto for such
      period; 

     

    (4)  if
      since
      the beginning of such period the Company or any Restricted Subsidiary (by
      merger, consolidation or otherwise) shall have made a Purchase (including any
      Purchase occurring in connection with a transaction causing a calculation to
      be
      made hereunder), Consolidated EBITDA for such period shall be calculated after
      giving pro forma effect thereto as if such Purchase occurred on the first day
      of
      such period; and 

     

    (5)  if
      since
      the beginning of such period any Person became a Restricted Subsidiary or was
      merged or consolidated with or into the Company or any Restricted Subsidiary,
      and since the beginning of such period such Person shall have made any Sale
      or
      Purchase that would have required an adjustment pursuant to clause (2), (3)
      or
      (4) above if made by the Company or a Restricted Subsidiary since the beginning
      of such period, Consolidated EBITDA and Consolidated Secured Indebtedness for
      such period shall be calculated after giving pro forma effect thereto as if
      such
      Sale or Purchase occurred on the first day of such period. 

     

       For
      purposes of this definition, whenever pro forma effect is to be given to any
      Sale, Purchase or other transaction, or the amount of income or earnings
      relating thereto, the pro forma calculations in respect thereof (including
      without limitation in respect of anticipated cost savings or synergies relating
      to any such Sale, Purchase or other transaction) shall be as determined in
      good
      faith by a responsible financial or accounting Officer of the Company.

    

    “Consolidated
      Tangible Assets”
means,
      as of any date of determination, the amount equal to (x) the sum of Consolidated
      Quarterly Tangible Assets as at the end of each of the most recently ended
      four
      fiscal quarters of the Company for which a calculation thereof is available,
      divided by (y) four; provided
      that for
      purposes of Section
      407(b),
      Section
      409
      and the
      definition of “Permitted Investment,” Consolidated Tangible Assets shall not be
      deemed to be less than $10,646 million.

     

    “Consolidated
      Total Indebtedness”
means,
      as of any date of determination, an amount equal to (1) the aggregate principal
      amount of outstanding Indebtedness of the Company and its Restricted
      Subsidiaries (other than the Notes) as of such date consisting of (without
      duplication) Indebtedness for borrowed money (including Purchase Money
      Obligations and unreimbursed outstanding drawn amounts under funded letters
      of
      credit); Capitalized Lease Obligations; debt obligations evidenced by bonds,
      debentures, notes or similar instruments; Disqualified Stock; and (in the case
      of any Restricted Subsidiary that is not a Subsidiary 

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    Guarantor)
      Preferred Stock, determined on a Consolidated basis in accordance with GAAP
      (excluding items eliminated in Consolidation, and for the avoidance of doubt,
      excluding Hedging Obligations), minus (2) the amount of such Indebtedness
      consisting of Indebtedness of a type referred to in, or Incurred pursuant to,
      Section
      407(b)(ix)
      to the
      extent not Incurred to finance or refinance the acquisition of Rental Vehicles,
      and minus (3) the Consolidated Vehicle Indebtedness as of such date.

     

    “Consolidated
      Vehicle Depreciation”
means,
      for any period, depreciation on all Rental Vehicles (after adjustments thereto),
      to the extent deducted in calculating Consolidated Net Income for such
      period.

     

    “Consolidated
      Vehicle Indebtedness”
means,
      as of any date of determination, the amount equal to either (a) the sum of
      (x)
      the aggregate principal amount of then outstanding Indebtedness of any Special
      Purpose Subsidiary that is a Restricted Subsidiary directly or indirectly
      Incurred to finance or refinance the acquisition of, or secured by, Rental
      Vehicles and/or related rights and/or assets plus (y) the aggregate principal
      amount of other then outstanding Indebtedness of the Company and its Restricted
      Subsidiaries that is attributable to the financing or refinancing of Rental
      Vehicles and/or related rights and/or assets, as determined in good faith by
      the
      Chief Financial Officer or an authorized Officer of the Company (which
      determination shall be conclusive) or, at the Company’s option, (b) 90% of the
      book value of Rental Vehicles of the Company and its Restricted Subsidiaries
      (such book value being determined as of the end of the most recently ended
      fiscal month of the Company for which internal consolidated financial statements
      of the Company are available, on a pro forma basis including (x) any Rental
      Vehicles acquired by the Company or any Restricted Subsidiary since the end
      of
      such fiscal month and (y) in the case of any determination relating to any
      Incurrence of Indebtedness, any Rental Vehicles being acquired by the Company
      or
      any Restricted Subsidiary in connection therewith).

     

    “Consolidated
      Vehicle Interest Expense”
means,
      for any period, the sum of (a) the aggregate interest expense for such period
      on
      any Indebtedness (including costs associated with letters of credit related
      to
      such Indebtedness) of any Special Purpose Subsidiary that is a Restricted
      Subsidiary directly or indirectly Incurred to finance or refinance the
      acquisition of, or secured by, Rental Vehicles and/or related rights and/or
      assets plus (b) either (x) the aggregate interest expense for such period on
      other Indebtedness of the Company and its Restricted Subsidiaries that is
      attributable to the financing or refinancing of Rental Vehicles and/or any
      related rights and/or assets, as determined in good faith by the Chief Financial
      Officer or an authorized Officer of the Company (which determination shall
      be
      conclusive) or, at the Company’s option, (y) an amount of the total interest
      expense of the Company and its Restricted Subsidiaries for such period equal
      to
      (i) the Average Interest Rate for such period multiplied by (ii) the amount
      equal to (1) 90% of the Average Book Value for such period of Rental Vehicles
      of
      the Company and its Restricted Subsidiaries minus (2) the Average Principal
      Amount for such period of any Indebtedness of any Special Purpose Subsidiary
      that is a Restricted Subsidiary directly or indirectly Incurred to finance
      or
      refinance the acquisition of, or secured by, Rental Vehicles and/or related
      rights and/or assets.

     

    “Consolidation”
means
      the consolidation of the accounts of each of the Restricted Subsidiaries with
      those of the Company in accordance with GAAP; provided
      that

     

    
      
        
        

      

      
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    “Consolidation”
      will not include consolidation of the accounts of any Unrestricted Subsidiary,
      but the interest of the Company or any Restricted Subsidiary in any Unrestricted
      Subsidiary will be accounted for as an investment. The term “Consolidated” has a
      correlative meaning.

     

    “Corporate
      Trust Office”
means
      the office of the Trustee at which at any particular time its corporate trust
      business shall be administered, which office on the Issue Date is located at
      One
      Liberty Plaza, 23rd Floor, New York, NY 10006.

     

    “Credit
      Facilities”
means
      one or more of (i) the Senior Credit Facility, and (ii) any other
      facilities or arrangements designated by the Company, in each case with one
      or
      more banks or other lenders or institutions providing for revolving credit
      loans, term loans, receivables or fleet financings (including without limitation
      through the sale of receivables or fleet assets to such institutions or to
      special purpose entities formed to borrow from such institutions against such
      receivables or fleet assets or the creation of any Liens in respect of such
      receivables or fleet assets in favor of such institutions), letters of credit
      or
      other Indebtedness, in each case, including all agreements, instruments and
      documents executed and delivered pursuant to or in connection with any of the
      foregoing, including but not limited to any notes and letters of credit issued
      pursuant thereto and any guarantee and collateral agreement, patent and
      trademark security agreement, mortgages or letter of credit applications and
      other guarantees, pledge agreements, security agreements and collateral
      documents, in each case as the same may be amended, supplemented, waived or
      otherwise modified from time to time, or refunded, refinanced, restructured,
      replaced, renewed, repaid, increased or extended from time to time (whether
      in
      whole or in part, whether with the original banks, lenders or institutions
      or
      other banks, lenders or institutions or otherwise, and whether provided under
      any original Credit Facility or one or more other credit agreements, indentures,
      financing agreements or other Credit Facilities or otherwise). Without limiting
      the generality of the foregoing, the term “Credit Facility” shall include any
      agreement (i) changing the maturity of any Indebtedness Incurred thereunder
      or
      contemplated thereby, (ii) adding Subsidiaries as additional borrowers or
      guarantors thereunder, (iii) increasing the amount of Indebtedness Incurred
      thereunder or available to be borrowed thereunder or (iv) otherwise altering
      the
      terms and conditions thereof.

     

    “Currency
      Agreement”
means,
      in respect of a Person, any foreign exchange contract, currency swap agreement,
      futures contract, option contract or other similar agreement or arrangements
      (including derivative agreements or arrangements), as to which such Person
      is a
      party or a beneficiary.

     

    “Default”
means
      any event or condition that is, or after notice or passage of time or both
      would
      be, an Event of Default.

     

    “Depositary”
means
      The Depository Trust Company, its nominees and successors.

     

    “Designated
      Noncash Consideration”
means
      the Fair Market Value of noncash consideration received by the Company or one
      of
      its Restricted Subsidiaries in connection with an Asset Disposition that is
      so
      designated as Designated Noncash Consideration pursuant to an Officer’s
      Certificate, setting forth the basis of such valuation.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    “Determination
      Date,”
with
      respect to an Interest Period, means the second London Banking Day preceding
      the
      first day of such Interest Period. 

     

    “Disinterested
      Directors”
means,
      with respect to any Affiliate Transaction, one or more members of the Board
      of
      Directors of the Company, or one or more members of the Board of Directors
      of a
      Parent, having no material direct or indirect financial interest in or with
      respect to such Affiliate Transaction. A member of any such Board of Directors
      shall not be deemed to have such a financial interest by reason of such member’s
      holding Capital Stock of the Company or any Parent or any options, warrants
      or
      other rights in respect of such Capital Stock. Prior to completion of the
      Separation Transactions, the Cendant directors who will remain directors of
      Cendant following such Transactions will be deemed to be Disinterested
      Directors.

     

    “Disqualified
      Stock”
means,
      with respect to any Person, any Capital Stock that by its terms (or by the
      terms
      of any security into which it is convertible or for which it is exchangeable
      or
      exercisable) or upon the happening of any event (other than following the
      occurrence of a Change of Control or other similar event described under such
      terms as a “change of control,” or an Asset Disposition) (i) matures or is
      mandatorily redeemable pursuant to a sinking fund obligation or otherwise,
      (ii)
      is convertible or exchangeable for Indebtedness or Disqualified Stock or (iii)
      is redeemable at the option of the holder thereof (other than following the
      occurrence of a Change of Control or other similar event described under such
      terms as a “change of control,” or an Asset Disposition), in whole or in part,
      in each case on or prior to the final Stated Maturity of the Notes.

     

    “Dollars”
or
      “$”
means
      dollars in lawful currency of the United States of America.

     

    “Domestic
      Subsidiary”
means
      any Restricted Subsidiary of the Company other than a Foreign
      Subsidiary.

     

    “Equity
      Offering”
means
      a
      sale of Capital Stock (x) that is a sale of Capital Stock of the Company
      (other than Disqualified Stock), or (y) proceeds of which in an amount
      equal to or exceeding the Redemption Amount are contributed to the equity
      capital of the Company or any of its Restricted Subsidiaries. 

     

    “Equity
      Interests”
means
      Capital Stock and all warrants, options, profits, interests, equity appreciation
      rights or other rights to acquire or purchase Capital Stock (but excluding
      any
      debt security that is convertible into, or Exchangeable for, Capital
      Stock).

     

    “Euroclear”
means
      Euroclear Bank S.A./N.V., as operator of the Euroclear System, or any successor
      securities clearing agency.

     

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended.

     

    “Exchange
      7.625% Notes”
means
      the Issuers’ 7.625% Senior Notes due 2014, containing terms substantially
      identical to the Initial 7.625% Notes or any Initial Additional 7.625% Notes
      (except that (i) such Exchange 7.625% Notes may omit terms with respect to
      transfer restrictions and may be registered under the Securities Act, and (ii)
      certain provisions 

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    relating
      to an increase in the stated rate of interest thereon may be eliminated), that
      are issued and exchanged for (a) the Initial 7.625% Notes, as provided for
      in
      the Registration Rights Agreement, or (b) such Initial Additional 7.625% Notes
      as may be provided in any registration rights agreement relating to such
      Additional Notes that are 7.625% Notes and this Indenture (including any
      amendment or supplement hereto.)

     

    “Exchange
      7.75% Notes”
means
      the Issuers’ 7.75% Senior Notes due 2016, containing terms substantially
      identical to the Initial 7.75% Notes or any Initial Additional 7.75% Notes
      (except that (i) such Exchange 7.75% Notes may omit terms with respect to
      transfer restrictions and may be registered under the Securities Act, and (ii)
      certain provisions relating to an increase in the stated rate of interest
      thereon may be eliminated), that are issued and exchanged for (a) the Initial
      7.75% Notes, as provided for in the Registration Rights Agreement, or (b) such
      Initial Additional 7.75% Notes as may be provided in any registration rights
      agreement relating to such Additional Notes that are 7.75% Notes and this
      Indenture (including any amendment or supplement hereto.)

     

    “Exchange
      Floating Rate Notes”
means
      the Issuers’ Floating Rate Senior Notes due 2014, containing terms substantially
      identical to the Initial Floating Rate Notes or any Initial Additional Floating
      Rate Notes (except that (i) such Exchange Floating Rate Notes may omit terms
      with respect to transfer restrictions and may be registered under the Securities
      Act, and (ii) certain provisions relating to an increase in the stated rate
      of
      interest thereon may be eliminated), that are issued and exchanged for (a)
      the
      Initial Floating Rate Notes, as provided for in the Registration Rights
      Agreement, or (b) such Initial Additional Floating Rate Notes as may be provided
      in any registration rights agreement relating to such Additional Notes that
      are
      Floating Rate Notes and this Indenture (including any amendment or supplement
      hereto.)

     

    “Exchange
      Notes”
means
      the Exchange 7.625% Notes, the Exchange 7.75% Notes and the Exchange Floating
      Rate Notes.

     

    “Fair
      Market Value”
means,
      with respect to any asset or property, the fair market value of such asset
      or
      property as determined in good faith by the Board of Directors, whose
      determination will be conclusive.

     

    “Financing
      Disposition”
means
      any sale, transfer, conveyance or other disposition of, or creation or
      incurrence of any Lien on, property or assets by the Company or any Subsidiary
      thereof to or in favor of any Special Purpose Entity, or by any Special Purpose
      Subsidiary, in each case in connection with a financing by a Special Purpose
      Entity or in connection with the Incurrence by a Special Purpose Entity of
      Indebtedness or obligations to make payments to the obligor on Indebtedness,
      which may be secured by a Lien in respect of such property or
      assets.

     

    “Floating
      Rate Notes”
means
      the Issuers’ Floating Rate Senior Notes due 2014.

     

    “Foreign
      Subsidiary”
means
      (a) any Restricted Subsidiary of the Company that is not organized under the
      laws of the United States of America or any state thereof or the District of
      Columbia and (b) any Restricted Subsidiary of the Company that has no material
      assets other 

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    than
      securities or Indebtedness of one or more Foreign Subsidiaries (or Subsidiaries
      thereof), and other assets relating to an ownership interest in any such
      securities, Indebtedness or Subsidiaries.

     

    “GAAP”
means
      generally accepted accounting principles in the United States of America as
      in
      effect on the Issue Date (for purposes of the definitions of the terms
“Consolidated Coverage Ratio,” “Consolidated EBITDA,” “Consolidated Interest
      Expense,” “Consolidated Net Income,” “Consolidated Quarterly Tangible Assets,”
“Consolidated Secured Indebtedness,” “Consolidated Secured Leverage Ratio,”
“Consolidated Tangible Assets,” “Consolidated Total Indebtedness,” “Consolidated
      Vehicle Depreciation,” “Consolidated Vehicle Indebtedness” and “Consolidated
      Vehicle Interest Expense,” all defined terms in this Indenture to the extent
      used in or relating to any of the foregoing definitions, and all ratios and
      computations based on any of the foregoing definitions) and as in effect from
      time to time (for all other purposes of this Indenture), including those set
      forth in the opinions and pronouncements of the Accounting Principles Board
      of
      the American Institute of Certified Public Accountants and statements and
      pronouncements of the Financial Accounting Standards Board or in such other
      statements by such other entity as approved by a significant segment of the
      accounting profession. All ratios and computations based on GAAP contained
      in
      this Indenture shall be computed in conformity to the extent possible with
      GAAP.

     

    “Guarantee”
means
      any obligation, contingent or otherwise, of any Person directly or indirectly
      guaranteeing any Indebtedness or other obligation of any other Person;
provided
      that the
      term “Guarantee” shall not include endorsements for collection or deposit in the
      ordinary course of business. The term “Guarantee” used as a verb has a
      corresponding meaning.

     

    “Guarantor”
means
      Avis Budget Holdings, LLC and each Subsidiary Guarantor.

     

    “Guarantor
      Subordinated Obligations”
means,
      with respect to a Subsidiary Guarantor, any Indebtedness of such Subsidiary
      Guarantor (whether outstanding on the Issue Date or thereafter Incurred) that
      is
      expressly subordinated in right of payment to the obligations of such Subsidiary
      Guarantor under its Subsidiary Guarantee pursuant to a written
      agreement.

     

    “Hedging
      Obligations”
of
      any
      Person means the obligations of such Person pursuant to any Interest Rate
      Agreement, Currency Agreement or Commodities Agreement.

     

    “Holder”
or
      “Noteholder”
means
      the Person in whose name a Note is registered in the Note Register.

     

    “Incur”
means
      issue, assume, enter into any Guarantee of, incur or otherwise become liable
      for; and the terms “Incurs,” “Incurred” and “Incurrence” shall have a
      correlative meaning; provided,
      that
      any Indebtedness or Capital Stock of a Person existing at the time such Person
      becomes a Restricted Subsidiary (whether by merger, consolidation, acquisition
      or otherwise) shall be deemed to be Incurred by such Restricted Subsidiary
      at
      the time it becomes a Restricted Subsidiary. Accrual of interest, the accretion
      of accreted value and the payment of interest in the form of additional
      Indebtedness will not be deemed to be an Incurrence of Indebtedness. Any
      Indebtedness issued at a discount (including Indebtedness on which interest
      

     

    
      
        
        

      

      
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    is
      payable through the issuance of additional Indebtedness) shall be deemed
      Incurred at the time of original issuance of the Indebtedness at the initial
      accreted amount thereof.

     

    “Indebtedness”
means,
      with respect to any Person on any date of determination (without
      duplication):

     

    (i)  the
      principal of indebtedness of such Person for borrowed money;

     

    (ii)  the
      principal of obligations of such Person evidenced by bonds, debentures, notes
      or
      other similar instruments;

     

    (iii)  the
      principal component of all reimbursement obligations of such Person in respect
      of letters of credit, bankers’ acceptances or other similar instruments (except
      to the extent such reimbursement obligation relates to a Trade Payable or
      similar liability and such obligation is satisfied within 30 days of
      Incurrence);

     

    (iv)  the
      principal component of all obligations of such Person to pay the deferred and
      unpaid purchase price of property (except Trade Payables), which purchase price
      is due more than one year after the date of placing such property in final
      service or taking final delivery and title thereto;

     

    (v)  all
      Capitalized Lease Obligations of such Person;

     

    (vi)  the
      redemption, repayment or other repurchase amount of such Person with respect
      to
      any Disqualified Stock of such Person or (if such Person is a Subsidiary of
      the
      Company other than a Subsidiary Guarantor) any Preferred Stock of such
      Subsidiary, but excluding, in each case, any accrued dividends (the amount
      of
      such obligation to be equal at any time to the maximum fixed involuntary
      redemption, repayment or repurchase price for such Capital Stock, or if less
      (or
      if such Capital Stock has no such fixed price), to the involuntary redemption,
      repayment or repurchase price thereof calculated in accordance with the terms
      thereof as if then redeemed, repaid or repurchased, and if such price is based
      upon or measured by the fair market value of such Capital Stock, such fair
      market value shall be as determined in good faith by the Board of Directors
      or
      the board of directors or other governing body of the issuer of such Capital
      Stock);

     

    (vii)  the
      principal component of all Indebtedness of other Persons secured by a Lien
      on
      any asset of such Person, whether or not such Indebtedness is assumed by such
      Person; provided
      that the
      amount of Indebtedness of such Person shall be the lesser of (A) the fair market
      value of such asset at such date of determination (as determined in good faith
      by the Company) and (B) the amount of such Indebtedness of such other
      Persons;

     

    (viii)  the
      principal component of Indebtedness of other Persons, to the extent Guaranteed
      by such Person; and

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    (ix)  to
      the
      extent not otherwise included in this definition, net Hedging Obligations of
      such Person (the amount of any such obligation to be equal at any time to the
      termination value of such agreement or arrangement giving rise to such Hedging
      Obligation that would be payable by such Person at such time).

     

    The
      amount of Indebtedness of any Person at any date shall be determined as set
      forth above or otherwise provided in this Indenture, or otherwise shall equal
      the amount thereof that would appear as a liability on a balance sheet of such
      Person (excluding any notes thereto) prepared in accordance with
      GAAP.

     

    “Initial
      Additional 7.625% Notes”
means
      Additional 7.625% Notes issued in an offering not registered under the
      Securities Act (and any Notes issued in respect thereof pursuant to Section
      304,
      305,
      306,
      312(c),
      312(d)
      or
1008).

     

    “Initial
      Additional 7.75% Notes”
means
      Additional 7.75% Notes issued in an offering not registered under the Securities
      Act (and any Notes issued in respect thereof pursuant to Section
      304,
      305,
      306,
      312(c),
      312(d)
      or
1008).

     

    “Initial
      Additional Floating Rate Notes”
means
      Additional Floating Rate Notes issued in an offering not registered under the
      Securities Act (and any Notes issued in respect thereof pursuant to Section
      304,
      305,
      306,
      312(c),
      312(d)
      or
1008).

     

    “Initial
      Additional Notes”
means
      the Initial Additional 7.625% Notes, the Initial Additional 7.75% Notes and
      the
      Initial Additional Floating Rate Notes.

     

    “Initial
      7.625% Notes”
means
      the 7.625% Notes issued on the Issue Date (and any Notes issued in respect
      thereof pursuant to Section
      304,
      305,
      306,
      312(c),
      312(d)
      or
1008).

     

    “Initial
      7.75% Notes”
means
      the 7.75% Notes issued on the Issue Date (and any Notes issued in respect
      thereof pursuant to Section
      304,
      305,
      306,
      312(c),
      312(d)
      or
1008).

     

    “Initial
      Floating Rate Notes”
means
      the Floating Rate Notes issued on the Issue Date (and any Notes issued in
      respect thereof pursuant to Section
      304,
      305,
      306,
      312(c),
      312(d)
      or
1008).

     

    “Initial
      Notes”
means
      the Initial 7.625% Notes, the Initial 7.75% Notes and the Initial Floating
      Rate
      Notes.

     

    “interest,”
with
      respect to the Notes, means interest on the Notes and, except for purposes
      of
Article
      IX,
      additional or special interest pursuant to the terms of any Note.

     

    “Interest
      Payment Date”
means,
      when used with respect to any Note and any installment of interest thereon,
      the
      date specified in such Note as the fixed date on which such installment of
      interest is due and payable, as set forth in such Note.

     

    “Interest
      Period”
means
      the period commencing on and including an interest payment date and ending
      on
      and including the day immediately preceding the next succeeding 

     

    
      
        
        

      

      
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    interest
      payment date, with the exception that the first Interest Period shall commence
      on and include the Issue Date and end on and include August 14, 2006.

     

    “Interest
      Rate Agreement”
means,
      with respect to any Person, any interest rate protection agreement, future
      agreement, option agreement, swap agreement, cap agreement, collar agreement,
      hedge agreement or other similar agreement or arrangement (including derivative
      agreements or arrangements), as to which such Person is party or a
      beneficiary.

     

    “Inventory”
means
      goods held for sale, lease or use by a Person in the ordinary course of
      business, net of any reserve for goods that have been segregated by such Person
      to be returned to the applicable vendor for credit, as determined in accordance
      with GAAP.

     

    “Investment”
in
      any
      Person by any other Person means any direct or indirect advance, loan or other
      extension of credit (other than to customers, dealers, licensees, franchisees,
      suppliers, directors, officers or employees of any Person in the ordinary course
      of business) or capital contribution (by means of any transfer of cash or other
      property to others or any payment for property or services for the account
      or
      use of others) to, or any purchase or acquisition of Capital Stock, Indebtedness
      or other similar instruments issued by, such Person. For purposes of the
      definition of “Unrestricted Subsidiary” and Section
      409
      only,
“Investment” shall include the portion (proportionate to the Company’s equity
      interest in such Subsidiary) of the Fair Market Value of the net assets of
      any
      Subsidiary of the Company at the time that such Subsidiary is designated an
      Unrestricted Subsidiary, provided
      that
      upon a redesignation of such Subsidiary as a Restricted Subsidiary, the Company
      shall be deemed to continue to have a permanent “Investment” in an Unrestricted
      Subsidiary in an amount (if positive) equal to (x) the Company’s “Investment” in
      such Subsidiary at the time of such redesignation less (y) the portion
      (proportionate to the Company’s equity interest in such Subsidiary) of the Fair
      Market Value of the net assets of such Subsidiary at the time of such
      redesignation, and (ii) any property transferred to or from an Unrestricted
      Subsidiary shall be valued at its Fair Market Value at the time of such
      transfer. Guarantees shall not be deemed to be Investments. The amount of any
      Investment outstanding at any time shall be the original cost of such
      Investment, reduced (at the Company’s option) by any dividend, distribution,
      interest payment, return of capital, repayment or other amount or value received
      in respect of such Investment; provided,
      that to
      the extent that the amount of Restricted Payments outstanding at any time is
      so
      reduced by any portion of any such amount or value that would otherwise be
      included in the calculation of Consolidated Net Income, such portion of such
      amount or value shall not be so included for purposes of calculating the amount
      of Restricted Payments that may be made pursuant to Section
      409(a).

     

    “Issue
      Date”
means
      the first date on which Notes are issued.

     

    “Issuers”
means
      Avis Budget Car Rental, LLC and Avis Budget Finance, Inc., and any and all
      successors thereto.

     

    “LIBOR,”
with
      respect to an Interest Period, means the rate (expressed as a percentage per
      annum) for deposits in U.S. dollars for a three-month period beginning on the
      day on which dealings in U.S. dollars are transacted, with respect to a future
      date, are expected to be transacted in the London interbank (a “London Banking
      Day”) after the Determination Date that appears on Telerate Page 3750 as of
      11:00 a.m., London time, on the Determination Date. If 

     

    
      
        
        

      

      
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    Telerate
      Page 3750 does not include such a rate or is unavailable on a Determination
      Date, the Calculation Agent will request the principal London office of each
      of
      four major banks in the London interbank market, as selected by the Calculation
      Agent, to provide such bank’s offered quotation (expressed as a percentage per
      annum), as of approximately 11:00 a.m., London time, on such Determination
      Date,
      to prime banks in the London interbank market for deposits in a Representative
      Amount in U.S. dollars for a three-month period beginning on the second London
      Banking Day after the Determination Date. If at least two such offered
      quotations are so provided, LIBOR for the Interest Period will be the arithmetic
      mean of such quotations. If fewer than two such quotations are so provided,
      the
      Calculation Agent will request each of three major banks in New York City,
      as
      selected by the Calculation Agent, to provide such bank’s rate (expressed as a
      percentage per annum), as of approximately 11:00 a.m., New York City time,
      on
      such Determination Date, for loans in a Representative Amount in U.S. dollars
      to
      leading European banks for a three-month period beginning on the second London
      Banking Day after the Determination Date. If at least two such rates are so
      provided, LIBOR for the Interest Period will be the arithmetic mean of such
      rates. If fewer than two such rates are so provided, then LIBOR for the Interest
      Period will be LIBOR in effect with respect to the immediately preceding
      Interest Period. 

     

    “Lien”
means
      any mortgage, pledge, security interest, encumbrance, lien or charge of any
      kind
      (including any conditional sale or other title retention agreement or lease
      in
      the nature thereof).

     

    “Management
      Advances”
means
      loans or advances made to directors, officers or employees of any Parent, the
      Company or any Restricted Subsidiary (x) in respect of travel, entertainment
      or
      moving-related expenses incurred in the ordinary course of business, (y) in
      respect of moving-related expenses incurred in connection with any closing
      or
      consolidation of any facility, or (z) in the ordinary course of business and
      (in
      the case of this clause (z)) not exceeding $5.0 million in the aggregate
      outstanding at any time.

     

    “Moody’s”
means
      Moody’s Investors Service, Inc., and its successors.

     

    “Net
      Available Cash”
from
      an
      Asset Disposition means an amount equal to all cash payments received (including
      any cash payments received by way of deferred payment of principal pursuant
      to a
      note or installment receivable or otherwise, but only as and when received,
      but
      excluding any other consideration received in the form of assumption by the
      acquiring person of Indebtedness or other obligations relating to the properties
      or assets that are the subject of such Asset Disposition or received in any
      other non-cash form) therefrom, in each case net of (i) all legal, accounting,
      investment banking, title and recording tax expenses, commissions and other
      fees
      and expenses incurred, and all federal, state, provincial, foreign and local
      taxes required to be paid or to be accrued as a liability under GAAP, as a
      consequence of such Asset Disposition (including as a consequence of any
      transfer of funds in connection with the application thereof in accordance
      with
Section 411),
      (ii)
      all payments made, and all installment payments required to be made, on any
      Indebtedness that is secured by any assets subject to such Asset Disposition,
      in
      accordance with the terms of any Lien upon such assets, or that must by its
      terms, or in order to obtain a necessary consent to such Asset Disposition,
      or
      by applicable law, be repaid out of the proceeds from such Asset Disposition,
      (iii) all distributions and other payments required to be made to minority
      interest holders in Subsidiaries or joint 

     

    
      
        
        

      

      
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    ventures
      as a result of such Asset Disposition, or to any other Person (other than the
      Company or a Restricted Subsidiary) owning a beneficial interest in the assets
      disposed of in such Asset Disposition, (iv) the deduction of appropriate amounts
      to be provided by the Seller as a reserve, in accordance with GAAP, against
      any
      liabilities, (v) any liabilities or obligations associated with the assets
      disposed of in such Asset Disposition and retained by the Company or any
      Restricted Subsidiary after such Asset Disposition, including without limitation
      pension and other post-employment benefit liabilities, liabilities related
      to
      environmental matters, and liabilities relating to any indemnification
      obligations associated with such Asset Disposition, and (vi) the amount of
      any
      purchase price or similar adjustment (x) claimed by any Person to be owed by
      the
      Company or any Restricted Subsidiary, until such time as such claim shall have
      been settled or otherwise finally resolved, or (y) paid or payable by the
      Company, in either case in respect of such Asset Disposition.

     

    “Net
      Cash Proceeds,”
with
      respect to any issuance or sale of any securities of the Company or any
      Subsidiary by the Company or any Subsidiary, or any capital contribution, means
      an amount equal to all the cash proceeds of such issuance, sale or contribution
      net of attorneys’ fees, accountants’ fees, underwriters’ or placement agents’
fees, listing fees, discounts or commissions and brokerage, consultant and
      other
      fees and charges actually incurred in connection with such issuance, sale or
      contribution and net of taxes paid or payable as a result thereof.

     

    “Non-U.S.
      Person”
means
      a
      Person who is not a U.S. person, as defined in Regulation S.

     

    “Notes”
means
      the Initial Notes, any Additional Notes, the Exchange Notes and any notes issued
      in respect thereof pursuant to Section
      304,
      305,
      306,
      312(c),
      312(d)
      or
1008.

     

    “Obligations”
means,
      with respect to any Indebtedness, any principal, premium (if any), interest
      (including interest accruing on or after the filing of any petition in
      bankruptcy or for reorganization relating to the Company or any Restricted
      Subsidiary whether or not a claim for post-filing interest is allowed in such
      proceedings), fees, charges, expenses, reimbursement obligations, Guarantees
      of
      such Indebtedness (or of Obligations in respect thereof), other monetary
      obligations of any nature and all other amounts payable thereunder or in respect
      thereof.

     

    “Officer”
means,
      with respect to the Company or any other obligor upon the Notes, the Chairman
      of
      the Board, the President, the Chief Executive Officer, the Chief Financial
      Officer, any Vice President, the Controller, the Treasurer or the Secretary
      (a)
      of such Person or (b) if such Person is owned or managed by a single entity,
      of
      such entity (or any other individual designated as an “Officer” for the purposes
      of this Indenture by the Board of Directors).

     

    “Officer’s
      Certificate”
means,
      with respect to the Company or any other obligor upon the Notes, a certificate
      signed by one Officer of such Person.

     

    “Opinion
      of Counsel”
means
      a
      written opinion from legal counsel who is reasonably acceptable to the Trustee.
      The counsel may be an employee of or counsel to the Company, any Parent or
      the
      Trustee.

     

    
      
        
        

      

      
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    “Original
      Notes”
means
      the Initial Notes and any Exchange Notes issued in exchange
      therefor.

     

    “Outstanding,”
when
      used with respect to Notes means, as of the date of determination, all Notes
      theretofore authenticated and delivered under this Indenture,
      except:

     

    (i)  Notes
      theretofore cancelled by the Trustee or delivered to the Trustee for
      cancellation;

     

    (ii)  Notes
      for
      whose payment or redemption money in the necessary amount has been theretofore
      deposited with the Trustee or any Paying Agent in trust for the Holders of
      such
      Notes, provided
      that, if
      such Notes are to be redeemed, notice of such redemption has been duly given
      pursuant to this Indenture or provision therefor reasonably satisfactory to
      the
      Trustee has been made; and

     

    (iii)  Notes
      in
      exchange for or in lieu of which other Notes have been authenticated and
      delivered pursuant to this Indenture.

     

    A
      Note
      does not cease to be Outstanding because the Company or any Affiliate of the
      Company holds the Note, provided
      that in
      determining whether the Holders of the requisite amount of Outstanding Notes
      have given any request, demand, authorization, direction, notice, consent or
      waiver hereunder, Notes owned by the Company or any Affiliate of the Company
      shall be disregarded and deemed not to be Outstanding, except that, for the
      purpose of determining whether the Trustee shall be protected in relying on
      any
      such request, demand, authorization, direction, notice, consent or waiver,
      only
      Notes which the Trustee actually knows are so owned shall be so disregarded.
      Notes so owned that have been pledged in good faith may be regarded as
      Outstanding if the pledgee establishes to the reasonable satisfaction of the
      Trustee the pledgee’s right to act with respect to such Notes and that the
      pledgee is not the Company or an Affiliate of the Company.

     

    “Parent”
means
      any of Cendant Corporation and any Other Parent and any other Person that is
      a
      Subsidiary of Cendant Corporation, or any Other Parent and of which the Company
      is a Subsidiary. As used herein, “Other Parent” means a Person of which the
      Company becomes a Subsidiary after the Issue Date, provided
      that
      either (x) immediately after the Company first becomes a Subsidiary of such
      Person, more than 50% of the Voting Stock of such Person shall be held by one
      or
      more Persons that held more than 50% of the Voting Stock of a Parent of the
      Company immediately prior to the Company first becoming such Subsidiary or
      (y)
      such Person shall be deemed not to be an Other Parent for the purpose of
      determining whether a Change of Control shall have occurred by reason of the
      Company first becoming a Subsidiary of such Person.

     

    “Parent
      Expenses”
means
      (i) costs (including all professional fees and expenses) incurred by any Parent
      in connection with its reporting obligations under, or in connection with
      compliance with, applicable laws or applicable rules of any governmental,
      regulatory or self-regulatory body or stock exchange, this Indenture or any
      other agreement or instrument relating to Indebtedness of the Company or any
      Restricted Subsidiary, including in respect of any reports filed with respect
      to
      the Securities Act, Exchange Act or the respective rules and regulations

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    promulgated
      thereunder, (ii) an aggregate amount not to exceed $5 million in any
      fiscal year to permit any Parent to pay its corporate overhead expenses Incurred
      in the ordinary course of business, and to pay salaries or other compensation
      of
      employees who perform services for any Parent or for both such Parent and the
      Company, provided that the Parent allocate such overhead among its Subsidiaries
      in conformity with clause (vi) of this paragraph, (iii) expenses
      incurred by any Parent in connection with the acquisition, development,
      maintenance, ownership, prosecution, protection and defense of its intellectual
      property and associated rights (including but not limited to trademarks, service
      marks, trade names, trade dress, patents, copyrights and similar rights,
      including registrations and registration or renewal applications in respect
      thereof; inventions, processes, designs, formulae, trade secrets, know-how,
      confidential information, computer software, data and documentation, and any
      other intellectual property rights; and licenses of any of the foregoing) to
      the
      extent such intellectual property and associated rights relate to the business
      or businesses of the Company or any Subsidiary thereof, (iv) indemnification
      obligations of any Parent owing to directors, officers, employees or other
      Persons under its charter or by-laws or pursuant to written agreements with
      any
      such Person, (v) other operational and tax expenses of any Parent incurred
      on
      behalf of the Company in the ordinary course of business, including obligations
      in respect of director and officer insurance (including premiums therefor);
      it
      being understood for purposes of this definition that following the completion
      of the Separation Transactions, all operational and tax expenses of the Parent
      are deemed to be incurred on behalf of the Company if the Company’s activities
      represent substantially all of the operating activities of the Parent and all
      of
      its Subsidiaries, (vi) prior to the completion of the Separation
      Transactions, general corporate overhead expenses allocated in conformity with
      past practices of the Company or as applied to other Cendant Subsidiaries (of,
      if applicable, to former Cendant Subsidiaries), and (vii) fees and expenses
      incurred by any Parent in connection with any offering of Capital Stock or
      Indebtedness, (x) where the net proceeds of such offering are intended to
      be received by or contributed or loaned to the Company or a Restricted
      Subsidiary, or (y) in a prorated amount of such expenses in proportion to the
      amount of such net proceeds intended to be so received, contributed or loaned,
      or (z) otherwise on an interim basis prior to completion of such offering so
      long as any Parent shall cause the amount of such expenses to be repaid to
      the
      Company or the relevant Restricted Subsidiary out of the proceeds of such
      offering promptly if completed.

     

    “Parent
      Guarantor”
means
      Avis Budget Holdings, LLC, a limited liability company organized under the
      laws
      of the State of Delaware.

     

    “Paying
      Agent”
means
      any Person authorized by the Company to pay the principal of (and premium,
      if
      any) or interest on any Notes on behalf of the Company; provided
      that
      neither the Company nor any of its Affiliates shall act as Paying Agent for
      purposes of Section
      1102
      or
Section
      1205.

     

    “Permitted
      Holder”
means
      any Person acting in the capacity of an underwriter in connection with a public
      or private offering of Voting Stock of any Parent or the Company. In addition,
      any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange
      Act) whose status as a “beneficial owner” (as defined in Rules 13d-3 and 13d-5
      under the Exchange Act) constitutes or results in a Change of Control in respect
      of which a Change of Control Offer is made in accordance with the requirements
      of the Indenture, together with its Affiliates, shall thereafter constitute
      Permitted Holders.

     

    
      
        
        

      

      
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    “Permitted
      Investment”
means
      an Investment by the Company or any Restricted Subsidiary in, or consisting
      of,
      any of the following:

     

    (i)  a
      Restricted Subsidiary, the Company, or a Person that will, upon the making
      of
      such Investment, become a Restricted Subsidiary so long as such Person is
      primarily engaged in a Related Business;

     

    (ii)  another
      Person if as a result of such Investment such other Person is merged or
      consolidated with or into, or transfers or conveys all or substantially all
      its
      assets to, or is liquidated into, the Company or a Restricted Subsidiary so
      long
      as such Person is primarily engaged in a Related Business;

     

    (iii)  Temporary
      Cash Investments or Cash Equivalents;

     

    (iv)  receivables
      owing to the Company or any Restricted Subsidiary, if created or acquired in
      the
      ordinary course of business;

     

    (v)  any
      securities or other Investments received as consideration in, or retained in
      connection with, sales or other dispositions of property or assets, including
      Asset Dispositions made in compliance with Section
      411;

     

    (vi)  securities
      or other Investments received in settlement of debts created in the ordinary
      course of business and owing to, or of other claims asserted by, the Company
      or
      any Restricted Subsidiary, or as a result of foreclosure, perfection or
      enforcement of any Lien, or in satisfaction of judgments, including in
      connection with any bankruptcy proceeding or other reorganization of another
      Person;

     

    (vii)  Investments
      in existence or made pursuant to legally binding written commitments in
      existence on the Issue Date;

     

    (viii)  Currency
      Agreements, Interest Rate Agreements, Commodities Agreements and related Hedging
      Obligations, which obligations are Incurred in compliance with Section
      407;

     

    (ix)  pledges
      or deposits (x) with respect to leases or utilities in the ordinary course
      of
      business or (y) otherwise described in the definition of “Permitted Liens” or
      made in connection with Liens permitted under Section
      413;

     

    (x)  (1)
      Investments in a Subsidiary, consisting of a demand note or promissory note
      of
      the Company or a Restricted Subsidiary issued in favor of or for the benefit
      of
      a Special Purpose Subsidiary and which serves solely as credit enhancement
      for
      any vehicle-related financing in such Special Purpose Subsidiary and
      (2) Investments by a Special Purpose Subsidiary which is a Restricted
      Subsidiary in any such demand note or other promissory note issued by the
      Company, any Restricted Subsidiary or any Parent to such Special Purpose
      Subsidiary which is a Restricted Subsidiary, provided
      that if
      such Parent receives cash from the relevant Special Purpose Entity in exchange
      for such note, an equal cash amount is contributed by any Parent to the
      Company;

     

    
      
        
        

      

      
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    (xi)  bonds
      secured by assets leased to and operated by the Company or any Restricted
      Subsidiary that were issued in connection with the financing of such assets
      so
      long as the Company or any Restricted Subsidiary may obtain title to such assets
      at any time by paying a nominal fee, canceling such bonds and terminating the
      transaction;

     

    (xii)  Notes;

     

    (xiii)  any
      Investment to the extent made using Capital Stock of the Company (other than
      Disqualified Stock) or Capital Stock of any Parent as
      consideration;

     

    (xiv)  Management
      Advances;

     

    (xv)  Investments
      consisting of, or arising out of or related to, Vehicle Rental Concession Rights
      (including any Investments referred to in the definition of the term
“Vehicle
      Rental Concession Rights”);

     

    (xvi)  any
      transaction to the extent it constitutes an Investment that is permitted by
      and
      made in accordance with Section
      412(b)
      (except
      transactions described in clauses (i),
      (v)
      and
(vi)
      of such
      paragraph); 

     

    (xvii)  other
      Investments in an aggregate amount outstanding at any time not to exceed 1.0%
      of
      Consolidated Tangible Assets; 

     

    (xviii)  Equity
      Interests, obligations or securities received in settlement of debts created
      in
      the ordinary course of business and owing to the Company or any Restricted
      Subsidiary or in satisfaction of judgments or pursuant to any plan of
      reorganization or similar arrangement upon the bankruptcy or insolvency of
      a
      debtor; and

     

    (xix)  endorsements
      of negotiable instruments and documents in the ordinary course of business
      or
      pledges or deposits permitted under clause (c) of the definition of “Permitted
      Liens.”

     

    If
      any
      Investment pursuant to clause (xvii) above is made in any Person that is not
      a
      Restricted Subsidiary and such Person thereafter becomes a Restricted
      Subsidiary, such Investment shall thereafter be deemed to have been made
      pursuant to clause (i) above and not clause (xvii) above for so long as such
      Person continues to be a Restricted Subsidiary.

     

    “Permitted
      Liens”
      means:

     

    (a)  Liens
      for
      taxes, assessments or other governmental charges not yet delinquent or the
      nonpayment of which in the aggregate would not reasonably be expected to have
      a
      material adverse effect on the Company and its Restricted Subsidiaries or that
      are being contested in good faith and by appropriate proceedings if adequate
      reserves with respect thereto are maintained on the books of the Company or
      a
      Subsidiary thereof, as the case may be, in accordance with GAAP;

     

    (b)  carriers’,
      warehousemen’s, mechanics’, landlords’, materialmen’s, repairmen’s or other like
      Liens arising in the ordinary course of business in respect of 

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    obligations
      that are not overdue for a period of more than 60 days or that are bonded or
      that are being contested in good faith and by appropriate
      proceedings;

     

    (c)  pledges,
      deposits or Liens in connection with workers’ compensation, unemployment
      insurance and other social security and other similar legislation or other
      insurance-related obligations (including, without limitation, pledges or
      deposits securing liability to insurance carriers under insurance or
      self-insurance arrangements);

     

    (d)  pledges,
      deposits or Liens to secure the performance of bids, tenders, trade, government
      or other contracts (other than for borrowed money), obligations for utilities,
      leases, licenses, statutory obligations, completion guarantees, surety,
      judgment, appeal or performance bonds, other similar bonds, instruments or
      obligations, and other obligations of a like nature incurred in the ordinary
      course of business;

     

    (e)  easements
      (including reciprocal easement agreements), rights-of-way, building, zoning
      and
      similar restrictions, utility agreements, covenants, reservations, restrictions,
      encroachments, charges, and other similar encumbrances or title defects
      incurred, or leases or subleases granted to others, in the ordinary course
      of
      business, which do not in the aggregate materially interfere with the ordinary
      conduct of the business of the Company and its Subsidiaries, taken as a
      whole;

     

    (f)  Liens
      existing on, or provided for under written arrangements existing on, the Issue
      Date, or (in the case of any such Liens securing Indebtedness of the Company
      or
      any of its Subsidiaries existing or arising under written arrangements existing
      on the Issue Date) securing any Refinancing Indebtedness in respect of such
      Indebtedness so long as the Lien securing such Refinancing Indebtedness is
      limited to all or part of the same property, assets or substitute assets (plus
      improvements, accessions, proceeds or dividends or distributions in respect
      thereof) that secured (or under such written arrangements could secure) the
      original Indebtedness; provided
      that
      liens incurred under the Senior Credit Facility or any Refinancing Indebtedness
      with respect thereto shall not be deemed to be permitted under this clause
      (f);

     

    (g)  (i)
      mortgages, liens, security interests, restrictions, encumbrances or any other
      matters of record that have been placed by any developer, landlord or other
      third party on property over which the Company or any Restricted Subsidiary
      of
      the Company has easement rights or on any leased property and subordination
      or
      similar agreements relating thereto and (ii) any condemnation or eminent domain
      proceedings affecting any real property;

     

    (h)  Liens
      securing Indebtedness (including Liens securing any Obligations in respect
      thereof) consisting of Hedging Obligations, Purchase Money Obligations or
      Capitalized Lease Obligations Incurred in compliance with Section
      407;

     

    (i)  Liens
      arising out of judgments, decrees, orders or awards in respect of which the
      Company shall in good faith be prosecuting an appeal or proceedings for review,
      which appeal or proceedings shall not have been finally terminated, or if the
      period within which such appeal or proceedings may be initiated shall not have
      expired;

     

    
      
        
        

      

      
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    (j)  leases,
      subleases, licenses or sublicenses (including, without limitation, real property
      and intellectual property rights) to third parties;

     

    (k)  Liens
      securing Indebtedness (including Liens securing any Obligations in respect
      thereof) consisting of (1) Indebtedness Incurred in compliance with Section
      407(b)(i),
      Section
      407(b)(iv),
      Section
      407(b)(v),
      Section
      407(b)(vii),
      Section
      407(b)(viii)
      or
Section
      407(b)(ix),
      or
Section
      407(b)(iii)
      (other
      than Refinancing Indebtedness Incurred in respect of Indebtedness described
      in
Section
      407(a)),
      (2)
      Bank Indebtedness Incurred in compliance with Section
      407(b),
      (3) the
      Notes, (4) Indebtedness of any Restricted Subsidiary that is not a Subsidiary
      Guarantor, and (5) Indebtedness or other obligations of any Special Purpose
      Entity;

     

    (l)  Liens
      existing on property or assets of a Person at the time such Person becomes
      a
      Subsidiary of the Company (or at the time the Company or a Restricted Subsidiary
      acquires such property or assets, including any acquisition by means of a merger
      or consolidation with or into the Company or any Restricted Subsidiary);
provided,
      however,
      that
      such Liens are not created in connection with, or in contemplation of, such
      other Person becoming such a Subsidiary (or such acquisition of such property
      or
      assets), and that such Liens are limited to all or part of the same property
      or
      assets (plus improvements, accessions, proceeds or dividends or distributions
      in
      respect thereof) that secured (or, under the written arrangements under which
      such Liens arose, could secure) the obligations to which such Liens
      relate;

     

    (m)  Liens
      on
      Capital Stock, Indebtedness or other securities of an Unrestricted Subsidiary
      that secure Indebtedness or other obligations of such Unrestricted
      Subsidiary;

     

    (n)  any
      encumbrance or restriction (including, but not limited to, put and call
      agreements) with respect to Capital Stock of any joint venture or similar
      arrangement pursuant to any joint venture or similar agreement;

     

    (o)  Liens
      securing Indebtedness (including Liens securing any Obligations in respect
      thereof) consisting of Refinancing Indebtedness Incurred in respect of any
      Indebtedness secured by, or securing any refinancing, refunding, extension,
      renewal or replacement (in whole or in part) of any other obligation secured
      by,
      any other Permitted Liens, provided
      that any
      such new Lien is limited to all or part of the same property or assets or
      replacements thereof (plus improvements, accessions, proceeds or dividends
      or
      distributions in respect thereof) that secured (or, under the written
      arrangements under which the original Lien arose, could secure) the obligations
      to which such Liens relate, other than Liens incurred in compliance with clause
      (k) above or clause (v) below;

     

    (p)  Liens
      (1)
      arising by operation of law (or by agreement to the same effect) in the ordinary
      course of business, (2) on property or assets under construction (and related
      rights) in favor of a contractor or developer or arising from progress or
      partial payments by a third party relating to such property or assets, (3)
      on
      cash set aside at the time of the Incurrence of any Indebtedness or government
      securities purchased with such cash, in either case to the extent that such
      cash
      or government securities prefund the payment of interest on such Indebtedness
      and are held in an escrow account or similar 

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    arrangement
      to be applied for such purpose, (4) securing or arising by reason of any netting
      or set-off arrangement entered into in the ordinary course of banking or other
      trading activities, (5) in favor of the Company or any Subsidiary (other than
      Liens on property or assets of the Company or any Subsidiary Guarantor in favor
      of any Subsidiary that is not a Subsidiary Guarantor), (6) arising out of
      conditional sale, title retention, consignment or similar arrangements for
      the
      sale of goods entered into in the ordinary course of business, (7) relating
      to
      pooled deposit or sweep accounts to permit satisfaction of overdraft, cash
      pooling or similar obligations incurred in the ordinary course of business,
      (8)
      attaching to commodity trading or other brokerage accounts incurred in the
      ordinary course of business, (9) on receivables (including related rights)
      or (10) arising in connection with repurchase agreements permitted under
Section
      407
      on
      assets that are the subject of such repurchase agreements;

     

    (q)  Liens
      on
      or under, or arising out of or relating to, any Vehicle Rental Concession
      Rights;

     

    (r)  other
      Liens securing obligations incurred in the ordinary course of business, which
      obligations do not exceed $50.0 million at any time outstanding; 

     

    (s)  Liens
      securing Indebtedness (including Liens securing any Obligations in respect
      thereof) consisting of Indebtedness Incurred in compliance with Section
      407
      not to
      exceed $25 million;

     

    (t)  any
      interest or title of a lessor under any Capitalized Lease Obligation or
      operating lease;

     

    (u)  Liens
      securing the Notes and Subsidiary Guarantees; 

     

    (v)  Liens
      securing Indebtedness which is secured by Rental Vehicles so long as the
      aggregate amount of Indebtedness secured by such Rental Vehicles does not exceed
      the sum of (i) 75% of the estimated value of such Rental Vehicles and (ii)
      the
      aggregate amount of letters of credit supporting such Indebtedness;
      and

     

    (w)  Liens
      securing Indebtedness (including Liens securing any Obligations in respect
      thereof) consisting of Indebtedness Incurred in compliance with Section
      407,
      provided
      that on
      the date of the Incurrence of such Indebtedness after giving effect to such
      Incurrence (or on the date of the initial borrowing of such Indebtedness after
      giving pro forma effect to the Incurrence of the entire committed amount of
      such
      Indebtedness), the Consolidated Secured Leverage Ratio shall not exceed 4.0
      to
      1.0. 

     

    “Person”
means
      any individual, corporation, partnership, joint venture, association,
      joint-stock company, limited liability company, trust, unincorporated
      organization, government or any agency or political subdivision thereof or
      any
      other entity.

     

    “Place
      of Payment”
means
      a
      city or any political subdivision thereof in which any Paying Agent appointed
      pursuant to Article
      III
      is
      located.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    “Predecessor
      Notes”
of
      any
      particular Note means every previous Note evidencing all or a portion of the
      same debt as that evidenced by such particular Note; and, for the purposes
      of
      this definition, any Note authenticated and delivered under Section
      306
      in lieu
      of a mutilated, lost, destroyed or stolen Note shall be deemed to evidence
      the
      same debt as the mutilated, lost, destroyed or stolen Note.

     

    “Preferred
      Stock”
as
      applied to the Capital Stock of any corporation means Capital Stock of any
      class
      or classes (however designated) that by its terms is preferred as to the payment
      of dividends, or as to the distribution of assets upon any voluntary or
      involuntary liquidation or dissolution of such corporation, over shares of
      Capital Stock of any other class of such corporation.

     

    “Public
      Facility”
means
      (i) any airport; marine port; rail, subway, bus or other transit stop, station
      or terminal; stadium; convention center; or military camp, fort, post or base
      or
      (ii) any other facility owned or operated by any nation or government or
      political subdivision thereof, or agency, authority or other instrumentality
      of
      any thereof, or other entity exercising regulatory, administrative or other
      functions of or pertaining to government, or any organization of nations
      (including the United Nations, the European Union and the North Atlantic Treaty
      Organization).

     

    “Public
      Facility Operator”
means
      a
      Person that grants or has the power to grant a Vehicle Rental
      Concession.

     

    “Purchase
      Money Obligations”
means
      any Indebtedness Incurred to finance or refinance the acquisition, leasing,
      construction or improvement of property (real or personal) or assets, and
      whether acquired through the direct acquisition of such property or assets
      or
      the acquisition of the Capital Stock of any Person owning such property or
      assets, or otherwise; provided
      that for
      purposes of Section
      407(b)(iv),
      the
      term “Purchase Money Obligations” shall not include Indebtedness to the extent
      Incurred to finance or refinance the direct acquisition of Inventory or Vehicles
      (not acquired through the acquisition of Capital Stock of any Person owning
      property or assets, or through the acquisition of property or assets, that
      include Inventory or Vehicles).

     

    “QIB”
or
      “Qualified
      Institutional Buyer”
means
      a
“qualified institutional buyer,” as that term is defined in Rule
      144A.

     

    “Receivable”
means
      a
      right to receive payment pursuant to an arrangement with another Person pursuant
      to which such other Person is obligated to pay, as determined in accordance
      with
      GAAP.

     

    “Redemption
      Date,”
when
      used with respect to any Note to be redeemed or purchased, means the date fixed
      for such redemption or purchase by or pursuant to this Indenture and the
      Notes.

     

    “refinance”
means
      refinance, refund, replace, renew, repay, modify, restate, defer, substitute,
      supplement, reissue, resell or extend (including pursuant to any defeasance
      or

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    discharge
      mechanism); and the terms “refinances,” “refinanced” and “refinancing” as used
      for any purpose in this Indenture shall have a correlative meaning.

     

    “Refinancing
      Indebtedness”
means
      Indebtedness that is Incurred to refinance any Indebtedness existing on the
      date
      of this Indenture or Incurred in compliance with this Indenture (including
      Indebtedness of the Company that refinances Indebtedness of any Restricted
      Subsidiary (to the extent permitted in this Indenture) and Indebtedness of
      any
      Restricted Subsidiary that refinances Indebtedness of another Restricted
      Subsidiary) including Indebtedness that refinances Refinancing Indebtedness;
      provided,
      that
      (1) if the Indebtedness being refinanced is Subordinated Obligations or
      Guarantor Subordinated Obligations, the Refinancing Indebtedness has a final
      Stated Maturity at the time such Refinancing Indebtedness is Incurred that
      is
      equal to or greater than the final Stated Maturity of the Indebtedness being
      refinanced (or if shorter, the Notes), (2) such Refinancing Indebtedness is
      Incurred in an aggregate principal amount (or if issued with original issue
      discount, an aggregate issue price) that is equal to or less than the sum of
      (x)
      the aggregate principal amount (or if issued with original issue discount,
      the
      aggregate accreted value) then outstanding of the Indebtedness being refinanced,
      plus (y) fees, underwriting discounts, premiums and other costs and expenses
      incurred in connection with such Refinancing Indebtedness and (3) Refinancing
      Indebtedness shall not include (x) Indebtedness of a Restricted Subsidiary
      that
      is not a Subsidiary Guarantor that refinances Indebtedness of the Company or
      a
      Subsidiary Guarantor that could not have been initially Incurred by such
      Restricted Subsidiary pursuant to Section
      407
      or (y)
      Indebtedness of the Company or a Restricted Subsidiary that refinances
      Indebtedness of an Unrestricted Subsidiary.

     

    “Registration
      Rights Agreement”
means
      the Registration Rights Agreement, dated as of April 19, 2006, by and among
      the
      Issuers, the Guarantors and the other parties named on the signature pages
      thereof, as such agreement may be amended, modified or supplemented from time
      to
      time.

     

    “Regular
      Record Date”
for
      the
      interest payable on any Interest Payment Date means the date specified for
      that
      purpose in Section
      301.

     

    “Regulation
      S”
means
      Regulation S under the Securities Act.

     

    “Regulation
      S Certificate”
means
      a
      certificate substantially in the form attached hereto as Exhibit
      H.

     

    “Related
      Business”
means
      those businesses in which the Company or any of its Subsidiaries is engaged
      on
      the date of this Indenture, or that are related, complementary, incidental
      or
      ancillary thereto or extensions, developments or expansions
      thereof.

     

    “Related
      Taxes”
means
      any and all Taxes required to be paid by any Parent other than Taxes directly
      attributable to (i) the income of any entity other than any Parent, the Company
      or any of its Subsidiaries, (ii) owning stock or other equity interests of
      any
      corporation or other entity other than any Parent, the Company or any of its
      Subsidiaries or (iii) withholding taxes on payments actually made by any Parent
      other than to another Parent, the Company or any of its
      Subsidiaries.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    “Rental
      Vehicles”
means
      all passenger Vehicles owned by or leased to the Company or any Subsidiary
      that
      are or have been offered for lease or rental by any of the Company and its
      Restricted Subsidiaries in their vehicle rental operations (and not, for the
      avoidance of doubt, in connection with any business or operations involving
      the
      leasing or renting of other types of Vehicles), including any such Vehicles
      being held for sale. 

     

    “Representative
      Amount”
means
      a
      principal amount of not less than U.S. $1,000,000 for a single transaction
      in
      the relevant market at the relevant time. 

     

    “Resale
      Restriction Termination Date”
means,
      with respect to any Note, the date that is two years (or such other period
      as
      may hereafter be provided under Rule 144(k) under the Securities Act or any
      successor provision thereto as permitting the resale by non-affiliates of
      Restricted Securities without restriction) after the later of the original
      issue
      date in respect of such Note and the last date on which the Company or any
      Affiliate of the Company was the owner of such Note (or any Predecessor Note
      thereto).

     

    “Responsible
      Officer”
when
      used with respect to the Trustee means the chairman or vice-chairman of the
      board of directors, the chairman or vice-chairman of the executive committee
      of
      the board of directors, the president, any vice president or assistant vice
      president, the secretary, any assistant secretary, the treasurer, any assistant
      treasurer, the cashier, any assistant cashier, any trust officer or assistant
      trust officer, the controller and any assistant controller or any other officer
      of the Trustee customarily performing functions similar to those performed
      by
      any of the above designated officers and also means, with respect to a
      particular corporate trust matter, any other officer to whom such matter is
      referred because of his knowledge of and familiarity with the particular
      subject.

     

    “Restricted
      Payment Transaction”
means
      any Restricted Payment permitted pursuant to Section
      409,
      any
      Permitted Payment, any Permitted Investment, or any transaction specifically
      excluded from the definition of the term “Restricted Payment” (including
      pursuant to the exception contained in clause (i) and the parenthetical
      exclusions contained in clauses (ii) and (iii) of such definition).

     

    “Restricted
      Security”
has
      the
      meaning assigned to such term in Rule 144(a)(3) under the Securities Act;
provided,
      however,
      that
      the Trustee shall be entitled to receive, at its request, and conclusively
      rely
      on an Opinion of Counsel with respect to whether any Note constitutes a
      Restricted Security.

     

    “Restricted
      Subsidiary”
means
      any Subsidiary of the Company other than an Unrestricted
      Subsidiary.

     

    “Rule
      144A”
means
      Rule 144A under the Securities Act.

     

    “S&P”
means
      Standard & Poor’s Ratings Group, a division of The McGraw-Hill Companies,
      Inc., and its successors.

     

    “SEC”
means
      the Securities and Exchange Commission.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    “Securities
      Act”
means
      the Securities Act of 1933, as amended.

     

    “Senior
      Credit Facility”
or
      “Senior
      Credit Agreement”
means
      the senior secured credit facilities expected to be entered into by Avis Budget
      Car Rental, LLC, as borrower, and certain of its subsidiaries, as subsidiary
      borrowers, with JPMorgan Chase Bank, N.A., as administrative agent, Deutsche
      Bank Securities, Inc., as syndication agent, and the lenders party thereto
      from
      time to time, any Loan Documents (as defined therein), any notes and letters
      of
      credit issued pursuant thereto and any guarantee and collateral agreement,
      patent and trademark security agreement, mortgages, letter of credit
      applications and other guarantees, pledge agreements, security agreements and
      collateral documents, and other instruments and documents, executed and
      delivered pursuant to or in connection with any of the foregoing, in each case
      as the same may be amended, supplemented, waived or otherwise modified from
      time
      to time, or refunded, refinanced, restructured, replaced, renewed, repaid,
      increased or extended from time to time (whether in whole or in part, whether
      with the original agent and lenders or other agents and lenders or otherwise,
      and whether provided under one or more credit agreements, indentures (including
      this Indenture) or financing agreements or otherwise). Without limiting the
      generality of the foregoing, the term “Senior
      Credit Facility”
shall
      include any agreement (i) changing the maturity of any Indebtedness Incurred
      thereunder or contemplated thereby, (ii) adding Subsidiaries of the Company
      as
      additional borrowers or guarantors thereunder, (iii) increasing the amount
      of
      Indebtedness Incurred thereunder or available to be borrowed thereunder or
      (iv)
      otherwise altering the terms and conditions thereof.

     

    “Separation
      Transactions” means
      the
      plan announced by Cendant Corporation on October 24, 2005, to separate into
      independent companies as such plan may be modified, amended (including, without
      limitation, pursuing and/or consummating one or more alternatives to one or
      more
      of the proposed separations) or abandoned from time to time and any and all
      transactions, agreements and arrangements related thereto. 

     

    “Significant
      Subsidiary”
means
      any Restricted Subsidiary that would be a “significant subsidiary” of the
      Company within the meaning of Rule 1-02 under Regulation S-X promulgated by
      the
      SEC, as such Regulation is in effect on the Issue Date.

     

    “Special
      Purpose Entity”
means
      (x) any Special Purpose Subsidiary or (y) any other Person that is engaged
      in
      the business of (i) acquiring, selling, collecting, financing or refinancing
      Receivables, accounts (as defined in the Uniform Commercial Code as in effect
      in
      any jurisdiction from time to time), other accounts and/or other receivables,
      and/or related assets, and/or (ii) acquiring, selling, leasing, financing or
      refinancing Vehicles, and/or related rights (including under leases,
      manufacturer warranties and buy-back programs, and insurance policies) and/or
      assets (including managing, exercising and disposing of any such rights and/or
      assets).

     

    “Special
      Purpose Financing”
means
      any financing or refinancing of assets consisting of or including Receivables,
      Vehicles of the Company or any Restricted Subsidiary that have been transferred
      to a Special Purpose Entity or made subject to a Lien in a Financing
      Disposition.

     

    “Special
      Purpose Financing Fees”
means
      distributions or payments made directly or by means of discounts with respect
      to
      any participation interest issued or sold in connection 

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    with,
      and
      other fees paid to a Person that is not a Restricted Subsidiary in connection
      with, any Special Purpose Financing.

     

    “Special
      Purpose Financing Undertakings”
means
      representations, warranties, covenants, indemnities, guarantees of performance
      and (subject to clause (y) of the proviso below) other agreements and
      undertakings entered into or provided by the Company or any of its Restricted
      Subsidiaries that the Company determines in good faith (which determination
      shall be conclusive) are customary or otherwise necessary or advisable in
      connection with a Special Purpose Financing or a Financing Disposition;
provided
      that (x)
      it is understood that Special Purpose Financing Undertakings may consist of
      or
      include (i) reimbursement and other obligations in respect of notes, letters
      of
      credit, surety bonds and similar instruments provided for credit enhancement
      purposes or (ii) Hedging Obligations, or other obligations relating to Interest
      Rate Agreements, Currency Agreements or Commodities Agreements entered into
      by
      the Company or any Restricted Subsidiary, in respect of any Special Purpose
      Financing or Financing Disposition, and (y) subject to the preceding clause
      (x),
      any such other agreements and undertakings shall not include any Guarantee
      of
      Indebtedness of a Special Purpose Subsidiary by the Company or a Restricted
      Subsidiary that is not a Special Purpose Subsidiary.

     

    “Special
      Purpose Subsidiary”
means
      a
      Subsidiary of the Company that (a) is engaged solely in (x) the business of
      (i)
      acquiring, selling, collecting, financing or refinancing Receivables, accounts
      (as defined in the Uniform Commercial Code as in effect in any jurisdiction
      from
      time to time) and other accounts and receivables (including any thereof
      constituting or evidenced by chattel paper, instruments or general intangibles),
      all proceeds thereof and all rights (contractual and other), collateral and
      other assets relating thereto, and/or (ii) acquiring, selling, leasing,
      financing or refinancing Vehicles, and/or related rights (including under
      leases, manufacturer warranties and buy-back programs, and insurance policies)
      and/or assets (including managing, exercising and disposing of any such rights
      and/or assets), all proceeds thereof and all rights (contractual and other),
      collateral and other assets relating thereto, and (y) any business or activities
      incidental or related to such business, and (b) is designated as a “Special
      Purpose Subsidiary” by the Board of Directors.

     

    “Special
      Record Date”
for
      the
      payment of any Defaulted Interest means a date fixed by the Trustee pursuant
      to
Section
      307.

     

    “Stated
      Maturity”
means,
      with respect to any security, the date specified in such security as the fixed
      date on which the payment of principal of such security is due and payable,
      including pursuant to any mandatory redemption provision (but excluding any
      provision providing for the repurchase of such security at the option of the
      holder thereof upon the happening of any contingency).

     

    “Subordinated
      Obligations”
means
      any Indebtedness of the Company (whether outstanding on the date of this
      Indenture or thereafter Incurred) that is expressly subordinated in right of
      payment to the Notes pursuant to a written agreement.

     

    “Subsidiary”
of
      any
      Person means (x) any corporation, association, partnership or other business
      entity of which more than 50% of the total voting power of shares of Capital
      Stock or other equity interests (including partnership interests) entitled
      (without regard to the 

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    occurrence
      of any contingency) to vote in the election of directors, managers or trustees
      thereof is at the time owned or controlled, directly or indirectly, by (i)
      such
      Person and/or (ii) one or more Subsidiaries of such Person or (y) any
      partnership, where more than 50% of the general partners of such partnership
      are
      owned or controlled, directly or indirectly, by (i) such Person and/or (ii)
      one
      or more Subsidiaries of such Person.

     

    “Subsidiary
      Guarantee”
means
      any guarantee that may from time to time be entered into by a Restricted
      Subsidiary of the Company on or after the Issue Date pursuant to Section
      414.

     

    “Subsidiary
      Guarantor”
means
      any Restricted Subsidiary of the Company that enters into a Subsidiary
      Guarantee.

     

    “Successor
      Company”
shall
      have the meaning assigned thereto in clause (i) under Section
      501.

     

    “Supplemental
      Indenture”
means
      a
      Supplemental Indenture, to be entered into substantially in the form attached
      hereto as Exhibit
      I.

     

    “Taxes”
means
      any taxes, charges or assessments, including but not limited to income, sales,
      use, transfer, rental, ad valorem, value-added, stamp, property consumption,
      franchise, license, capital, net worth, gross receipts, excise, occupancy,
      intangibles or similar tax, charges or assessments.

     

    “Tax
      Sharing Agreement”
means
      any tax sharing, indemnity or similar agreement of which Cendant or any of
      its
      subsidiaries is or will be a party.

     

    “Telerate
      Page 3750”
means
      the display designated as “Page 3750” on the Moneyline Telerate service (or such
      other page as may replace Page 3750 on that service). 

     

    “Temporary
      Cash Investments”
means
      any of the following: (i) any investment in (x) direct obligations of the United
      States of America, a member state of The European Union or any country in whose
      currency funds are being held pending their application in the making of an
      investment or capital expenditure by the Company or a Restricted Subsidiary
      in
      that country or with such funds, or any agency or instrumentality of any thereof
      or obligations Guaranteed by the United States of America or a member state
      of
      The European Union or any country in whose currency funds are being held pending
      their application in the making of an investment or capital expenditure by
      the
      Company or a Restricted Subsidiary in that country or with such funds, or any
      agency or instrumentality of any of the foregoing, or obligations guaranteed
      by
      any of the foregoing or (y) direct obligations of any foreign country recognized
      by the United States of America rated at least “A” by S&P or “A-1” by
      Moody’s (or, in either case, the equivalent of such rating by such organization
      or, if no rating of S&P or Moody’s then exists, the equivalent of such
      rating by any nationally recognized rating organization), (ii) overnight bank
      deposits, and investments in time deposit accounts, certificates of deposit,
      bankers’ acceptances and money market deposits (or, with respect to foreign
      banks, similar instruments) maturing not more than one year after the date
      of
      acquisition thereof issued by (x) any bank or other institutional lender under
      a
      Credit Facility or any affiliate thereof or (y) a bank or trust company that
      is
      organized 

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    under
      the
      laws of the United States of America, any state thereof or any foreign country
      recognized by the United States of America having capital and surplus
      aggregating in excess of $250.0 million (or the foreign currency equivalent
      thereof) and whose long term debt is rated at least “A” by S&P or “A-1” by
      Moody’s (or, in either case, the equivalent of such rating by such organization
      or, if no rating of S&P or Moody’s then exists, the equivalent of such
      rating by any nationally recognized rating organization) at the time such
      Investment is made, (iii) repurchase obligations with a term of not more than
      30
      days for underlying securities of the types described in clause (i) or (ii)
      above entered into with a bank meeting the qualifications described in clause
      (ii) above, (iv) Investments in commercial paper, maturing not more than 270
      days after the date of acquisition, issued by a Person (other than that of
      the
      Company or any of its Subsidiaries), with a rating at the time as of which
      any
      Investment therein is made of “P-2” (or higher) according to Moody’s or “A-2”
(or higher) according to S&P (or, in either case, the equivalent of such
      rating by such organization or, if no rating of S&P or Moody’s then exists,
      the equivalent of such rating by any nationally recognized rating organization),
      (v) Investments in securities maturing not more than one year after the date
      of
      acquisition issued or fully guaranteed by any state, commonwealth or territory
      of the United States of America, or by any political subdivision or taxing
      authority thereof, and rated at least “A” by S&P or “A” by Moody’s (or, in
      either case, the equivalent of such rating by such organization or, if no rating
      of S&P or Moody’s then exists, the equivalent of such rating by any
      nationally recognized rating organization), (vi) Preferred Stock (other than
      of
      the Company or any of its Subsidiaries) having a rating of “A” or higher by
      S&P or “A-2” or higher by Moody’s (or, in either case, the equivalent of
      such rating by such organization or, if no rating of S&P or Moody’s then
      exists, the equivalent of such rating by any nationally recognized rating
      organization), (vii) investment funds investing 95% of their assets in
      securities of the type described in clauses (i)-(vi) above (which funds may
      also
      hold reasonable amounts of cash pending investment and/or distribution), (viii)
      any money market deposit accounts issued or offered by a domestic commercial
      bank or a commercial bank organized and located in a country recognized by
      the
      United States of America, in each case, having capital and surplus in excess
      of
      $250.0 million (or the foreign currency equivalent thereof), or investments
      in
      money market funds subject to the risk limiting conditions of Rule 2a-7 (or
      any
      successor rule) of the SEC under the Investment Company Act of 1940, as amended,
      and (ix) similar investments approved by the Board of Directors in the ordinary
      course of business.

     

    “TIA”
means
      the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-7bbbb) as in effect on the
      date of this Indenture.

     

    “Trade
      Payables”
means,
      with respect to any Person, any accounts payable or any indebtedness or monetary
      obligation to trade creditors created, assumed or guaranteed by such Person
      arising in the ordinary course of business in connection with the acquisition
      of
      goods or services.

     

    “Trustee”
means
      the party named as such in the first paragraph of this Indenture until a
      successor replaces it and, thereafter, means the successor.

     

    “Trust
      Officer”
means
      the Chairman of the Board, the President or any other officer or assistant
      officer of the Trustee assigned by the Trustee to administer its corporate
      trust
      matters.

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    “Unrestricted
      Subsidiary”
means
      (i) any Subsidiary of the Company that at the time of determination is an
      Unrestricted Subsidiary, as designated by the Board of Directors in the manner
      provided below, (ii) any Special Purpose Subsidiary that is designated by the
      Board of Directors in the manner provided below and (iii) any Subsidiary of
      an Unrestricted Subsidiary. The Board of Directors may designate any Subsidiary
      of the Company (including any newly acquired or newly formed Subsidiary of
      the
      Company) to be an Unrestricted Subsidiary unless such Subsidiary or any of
      its
      Subsidiaries owns any Capital Stock or Indebtedness of, or owns or holds any
      Lien on any property of, the Company or any other Restricted Subsidiary of
      the
      Company that is not a Subsidiary of the Subsidiary to be so designated;
provided,
      that
      (A) such designation was made at or prior to the Issue Date, or (B) the
      Subsidiary to be so designated has total consolidated assets of $1,000 at the
      time of designation or less or (C) if such Subsidiary has consolidated assets
      greater than $1,000, then such designation would be permitted under Section
      409.
      The
      Board of Directors may designate any Unrestricted Subsidiary to be a Restricted
      Subsidiary; provided,
      that
      immediately after giving effect to such designation (x) the Company could Incur
      at least $1.00 of additional Indebtedness under Section
      407(a)
      or (y)
      the Consolidated Coverage Ratio would be greater than it was immediately prior
      to giving effect to such designation or (z) such Subsidiary shall be a Special
      Purpose Subsidiary with no Indebtedness outstanding other than Indebtedness
      that
      can be Incurred (and upon such designation shall be deemed to be Incurred and
      outstanding) pursuant to Section
      407(b).
      Any
      such designation by the Board of Directors shall be evidenced to the Trustee
      by
      promptly filing with the Trustee a copy of the resolution of the Company’s Board
      of Directors giving effect to such designation and an Officer’s Certificate of
      the Company certifying that such designation complied with the foregoing
      provisions.

     

    “U.S.
      Government Obligation”
means
      (x) any security that is (i) a direct obligation of the United States of America
      for the payment of which the full faith and credit of the United States of
      America is pledged or (ii) an obligation of a Person controlled or supervised
      by
      and acting as an agency or instrumentality of the United States of America
      the
      payment of which is unconditionally guaranteed as a full faith and credit
      obligation by the United States of America, which, in either case under the
      preceding clause (i) or (ii), is not callable or redeemable at the option of
      the
      issuer thereof, and (y) any depositary receipt issued by a bank (as defined
      in
      Section 3(a)(2) of the Securities Act) as custodian with respect to any U.S.
      Government Obligation that is specified in clause (x) above and held by such
      bank for the account of the holder of such depositary receipt, or with respect
      to any specific payment of principal of or interest on any U.S. Government
      Obligation that is so specified and held, provided
      that
      (except as required by law) such custodian is not authorized to make any
      deduction from the amount payable to the holder of such depositary receipt
      from
      any amount received by the custodian in respect of the U.S. Government
      Obligation or the specific payment of principal or interest evidenced by such
      depositary receipt.

     

    “Vehicle
      Rental Concession”
means
      any right, whether or not exclusive, to conduct a Vehicle rental business at
      a
      Public Facility, or to pick up or discharge persons or otherwise to possess
      or
      use all or part of a Public Facility in connection with such a business, and
      any
      related rights or interests.

     

    “Vehicle
      Rental Concession Rights”
means
      any or all of the following: (a) any Vehicle Rental Concession, (b) any rights
      of the Company or any Restricted Subsidiary thereof 

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    under
      or
      relating to (i) any law, regulation, license, permit, request for proposals,
      invitation to bid, lease, agreement or understanding with a Public Facility
      Operator in connection with which a Vehicle Rental Concession has been or may
      be
      granted to the Company or any Restricted Subsidiary and (ii) any agreement
      with,
      or Investment or other interest or participation in, any Person, property or
      asset required (x) by any such law, ordinance, regulation, license, permit,
      request for proposals, invitation to bid, lease, agreement or understanding
      or
      (y) by any Public Facility Operator as a condition to obtaining or maintaining
      a
      Vehicle Rental Concession, and (c) any liabilities or obligations relating
      to or
      arising in connection with any of the foregoing.

     

    “Vehicles”
means
      vehicles owned or operated by, or leased or rented to or by, the Company or
      any
      of its Subsidiaries, including automobiles, trucks, tractors, trailers, vans,
      sport utility vehicles, buses, campers, motor homes, motorcycles and other
      motor
      vehicles.

     

    “Vice
      President”,
      when
      used with respect to any Person, means any vice president of such Person,
      whether or not designated by a number or a word or words added before or after
      the title “vice president.”

     

    “Voting
      Stock”
of
      an
      entity means all classes of Capital Stock of such entity then outstanding and
      normally entitled to vote in the election of directors or all interests in
      such
      entity with the ability to control the management or actions of such
      entity.

     

    Section
      102.  Other
      Definitions.

     

    
      	 	
              Term

            	
              Defined

              in
                Section

            	 
	 	 	 	 
	 	
              “7.625%
                Global Notes”

            	
              201

            	 
	 	
              “7.75%
                Global Notes”

            	
              201

            	 
	 	
              “Act”

            	
              108

            	 
	 	
              “Affiliate
                Transaction”

            	
              412

            	 
	 	
              “Agent
                Members”

            	
              312

            	 
	 	
              “Amendment”

            	
              410

            	 
	 	
              “Applicable
                Premium”

            	
              1001

            	 
	 	
              “Authentication
                Order”

            	
              303

            	 
	 	
              “Bankruptcy
                Law”

            	
              601

            	 
	 	
              “Certificate
                of Beneficial Ownership”

            	
              313

            	 
	 	
              “Change
                of Control Offer”

            	
              415

            	 
	 	
              “Covenant
                Defeasance”

            	
              1203

            	 
	 	
              “Custodian”

            	
              601

            	 
	 	
              “Defaulted
                Interest”

            	
              307

            	 
	 	
              “Defeasance”

            	
              1202

            	 
	 	
              “Defeased
                Notes”

            	
              1201

            	 
	 	
              “Distribution
                Compliance Period”

            	
              201

            	 
	 	
              “Event
                of Default”

            	
              601

            	 
	 	
              “Excess
                Proceeds”

            	
              411

            	 
	 	
              “Expiration
                Date”

            	
              108

            	 
	 	
              “Floating
                Rate Global Notes”

            	
              201

            	 

    

     

    
      
         

      

      
        37

        
          

        

      

      
         

      

    

     

    
      	
            	
              “Global
                Notes”

            	
              201

            	 
	 	
              “Initial
                Agreement”

            	
              410

            	 
	 	
              “Initial
                Lien”

            	
              413

            	 
	 	
              “Note
                Register” and “Note Registrar”

            	
              305

            	 
	 	
              “Notice
                of Default”

            	
              601

            	 
	 	
              “Offer”

            	
              411

            	 
	 	
              “Permanent
                Regulation S 7.625% Global Note”

            	
              201

            	 
	 	
              “Permanent
                Regulation S 7.75% Global Note”

            	
              201

            	 
	 	
              “Permanent
                Regulation S Floating Rate Global Note”

            	
              201

            	 
	 	
              “Permanent
                Regulation S Global Note”

            	
              201

            	 
	 	
              “Permitted
                Payment”

            	
              409

            	 
	 	
              “Physical
                Notes”

            	
              201

            	 
	 	
              “Private
                Placement Legend”

            	
              203

            	 
	 	
              “Redemption
                Amount”

            	
              1001

            	 
	 	
              “Redemption
                Price”

            	
              1001

            	 
	 	
              “Refinancing
                Agreement”

            	
              410

            	 
	 	
              “Regular
                Record Date”

            	
              301

            	 
	 	
              “Regulation
                S Global Notes”

            	
              201

            	 
	 	
              “Regulation
                S Note Exchange Date”

            	
              313

            	 
	 	
              “Regulation
                S Physical Notes”

            	
              201

            	 
	 	
              “Restricted
                Payment”

            	
              409

            	 
	 	
              “Rule
                144A 7.625% Global Note”

            	
              201

            	 
	 	
              “Rule
                144A 7.75% Global Note”

            	
              201

            	 
	 	
              “Rule
                144A Floating Rate Global Note”

            	
              201

            	 
	 	
              “Rule
                144A Global Note”

            	
              201

            	 
	 	
              “Rule
                144A Physical Notes”

            	
              201

            	 
	 	
              “Subsidiary
                Guaranteed Obligations”

            	
              1301

            	 
	 	
              “Successor
                Company”

            	
              501

            	 
	 	
              “Temporary
                Regulation S 7.625% Global Note”

            	
              201

            	 
	 	
              “Temporary
                Regulation S 7.75% Global Note”

            	
              201

            	 
	 	
              “Temporary
                Regulation S Floating Rate Global Note”

            	
              201

            	 
	 	
              “Temporary
                Regulation S Global Note”

            	
              201

            	 
	 	
              “Treasury
                Rate”

            	
              1001

            	 
	 	 

    

     

     

     

    Section
      103.  Rules
      of Construction.
      For all
      purposes of this Indenture, except as otherwise expressly provided or unless
      the
      context otherwise requires:

     

    (1)  the
      terms
      defined in this Indenture have the meanings assigned to them in this
      Indenture;

     

    (2)  “or”
is
      not
      exclusive;

     

    (3)  all
      accounting terms not otherwise defined herein have the meanings assigned to
      them
      in accordance with GAAP;

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    (4)  the
      words
“herein,”
      “hereof”
and
      “hereunder”
and
      other words of similar import refer to this Indenture as a whole and not to
      any
      particular Article, Section or other subdivision;

     

    (5)  all
      references to “$”
or
      “dollars”
shall
      refer to the lawful currency of the United States of America;

     

    (6)  all
      references to “€”
shall
      refer to the lawful currency of the member states of the European Union that
      adopt the single currency in accordance with the Treaty establishing the
      European Communities;

     

    (7)  the
      words
“include,”
      “included”
and
      “including,”
as
      used herein, shall be deemed in each case to be followed by the phrase
“without
      limitation,”
if
      not
      expressly followed by such phrase or the phrase “but
      not limited to”;

     

    (8)  words
      in
      the singular include the plural, and words in the plural include the
      singular;

     

    (9)  references
      to sections of, or rules under, the Securities Act shall be deemed to include
      substitute, replacement or successor sections or rules adopted by the SEC from
      time to time; and

     

    (10)  any
      reference to a Section, Article or clause refers to such Section, Article or
      clause of this Indenture.

     

    Section
      104.  Incorporation
      by Reference of TIA.
      Whenever this Indenture refers to a provision of the TIA, the provision is
      incorporated by reference in and made a part of this Indenture. This Indenture
      is subject to the mandatory provisions of the TIA, which are incorporated by
      reference in and made a part of this Indenture. Any terms incorporated by
      reference in this Indenture that are defined by the TIA, defined by any TIA
      reference to another statute or defined by SEC rule under the TIA, have the
      meanings so assigned to them therein. The following TIA terms have the following
      meanings:

     

    “indenture
      securities”
means
      the Notes.

     

    “indenture
      security holder”
means
      a
      Noteholder.

     

    “indenture
      to be qualified”
means
      this Indenture.

     

    “indenture
      trustee”
or
      “institutional
      trustee”
means
      the Trustee.

     

    “obligor”
on
      the
      indenture securities means the Issuers, any Guarantor, and any successor or
      other Person that is liable thereon.

     

    Section
      105.  Conflict
      with TIA.
      If any
      provision hereof limits, qualifies or conflicts with a provision of the TIA
      that
      is required under the TIA to be a part of and govern this Indenture, the latter
      provision shall control. If any provision of this Indenture modifies or

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    excludes
      any provision of the TIA that may be so modified or excluded, the latter
      provision shall be deemed (i) to apply to this Indenture as so modified or
      (ii)
      to be excluded, as the case may be.

     

    Section
      106.  Compliance
      Certificates and Opinions.
      Upon
      any application or request by the Issuers or by any other obligor upon the
      Notes
      (including any Guarantor) to the Trustee to take any action under any provision
      of this Indenture, the Issuers or such other obligor (including any Guarantor),
      as the case may be, shall furnish to the Trustee such certificates and opinions
      as may be required under the TIA. Each such certificate or opinion shall be
      given in the form of one or more Officer’s Certificates, if to be given by an
      Officer, or an Opinion of Counsel, if to be given by counsel, and shall comply
      with the requirements of the TIA and any other requirements set forth in this
      Indenture. Notwithstanding the foregoing, in the case of any such request or
      application as to which the furnishing of any Officer’s Certificate or Opinion
      of Counsel is specifically required by any provision of this Indenture relating
      to such particular request or application, no additional certificate or opinion
      need be furnished.

     

    Every
      certificate or opinion with respect to compliance with a condition or covenant
      provided for in this Indenture (except for certificates provided for in
Section
      406)
      shall
      include:

     

    (1)  a
      statement that the individual signing such certificate or opinion has read
      such
      covenant or condition and the definitions herein relating thereto;

     

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

     

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

     

    (4)  a
      statement as to whether, in the opinion of such individual, such condition
      or
      covenant has been complied with.

     

    Section
      107.  Form
      of Documents Delivered to Trustee.
      In any
      case where several matters are required to be certified by, or covered by an
      opinion of, any specified Person, it is not necessary that all such matters
      be
      certified by, or covered by the opinion of, only one such Person, or that they
      be so certified or covered by only one document, but one such Person may certify
      or give an opinion with respect to some matters and one or more other such
      Persons as to other matters, and any such Person may certify or give an opinion
      as to such matters in one or several documents.

     

    Any
      certificate or opinion of an Officer may be based, insofar as it relates to
      legal matters, upon a certificate or opinion of, or representations by, counsel,
      unless such Officer knows that the certificate or opinion or representations
      with respect to the matters upon which his certificate or opinion is based
      are
      erroneous. Any such certificate or opinion of counsel may be based, insofar
      as
      it relates to factual matters, upon a certificate or opinion of, or
      representations by, an Officer or Officers to the effect that the information
      with respect to such 

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

    factual
      matters is in the possession of the Issuers, unless such counsel knows that
      the
      certificate or opinion or representations with respect to such matters are
      erroneous.

     

    Where
      any
      Person is required to make, give or execute two or more applications, requests,
      consents, certificates, statements, opinions or other instruments under this
      Indenture, they may, but need not, be consolidated and form one
      instrument.

     

    Section
      108.  Acts
      of Noteholders; Record Dates.
      (a) Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action provided by this Indenture to be given or taken by Holders may be
      embodied in and evidenced by one or more instruments of substantially similar
      tenor signed by such Holders in person or by agent duly appointed in writing;
      and, except as herein otherwise expressly provided, such action shall become
      effective when such instrument or instruments are delivered to the Trustee,
      and,
      where it is hereby expressly required, to the Issuers, as the case may be.
      Such
      instrument or instruments (and the action embodied therein and evidenced
      thereby) are herein sometimes referred to as the “Act”
of
      the
      Holders signing such instrument or instruments. Proof of execution of any such
      instrument or of a writing appointing any such agent shall be sufficient for
      any
      purpose of this Indenture and (subject to Section
      701)
      conclusive in favor of the Trustee, the Issuers and any other obligor upon
      the
      Notes, if made in the manner provided in this Section
      108.

     

    (b)  The
      fact
      and date of the execution by any Person of any such instrument or writing may
      be
      proved by the affidavit of a witness of such execution or by the certificate
      of
      any notary public or other officer authorized by law to take acknowledgments
      of
      deeds, certifying that the individual signing such instrument or writing
      acknowledged to him the execution thereof. Where such execution is by an officer
      of a corporation or a member of a partnership or other legal entity other than
      an individual, on behalf of such corporation or partnership or entity, such
      certificate or affidavit shall also constitute sufficient proof of such Person’s
      authority. The fact and date of the execution of any such instrument or writing,
      or the authority of the person executing the same, may also be proved in any
      other manner that the Trustee deems sufficient.

     

    (c)  The
      ownership of Notes shall be proved by the Note Register.

     

    (d)  Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action by the Holder of any Note shall bind the Holder of every Note issued
      upon
      the transfer thereof or in exchange therefor or in lieu thereof, in respect
      of
      anything done, suffered or omitted to be done by the Trustee, the Issuers or
      any
      other obligor upon the Notes in reliance thereon, whether or not notation of
      such action is made upon such Note.

     

    (e)  (i) The
      Issuers may set any day as a record date for the purpose of determining the
      Holders of Outstanding Notes entitled to give, make or take any request, demand,
      authorization, direction, notice, consent, waiver or other action provided
      or
      permitted by this Indenture to be given, made or taken by Holders of Notes,
      provided
      that the
      Issuers may not set a record date for, and the provisions of this paragraph
      shall not apply with respect to, the giving or making of any notice,
      declaration, request or direction referred to in the next paragraph. If any
      record date is set pursuant to this paragraph, the Holders of Outstanding Notes
      on such record date (or their duly designated proxies), and no other Holders,
      shall be entitled to take the relevant action, whether or not such Persons
      

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

    remain
      Holders after such record date; provided
      that no
      such action shall be effective hereunder unless taken on or prior to the
      applicable Expiration Date by Holders of the requisite principal amount of
      Outstanding Notes on such record date. Nothing in this paragraph shall be
      construed to prevent the Issuers from setting a new record date for any action
      for which a record date has previously been set pursuant to this paragraph
      (whereupon the record date previously set shall automatically and with no action
      by any Person be cancelled and of no effect), and nothing in this paragraph
      shall be construed to render ineffective any action taken by Holders of the
      requisite principal amount of Outstanding Notes on the date such action is
      taken. Promptly after any record date is set pursuant to this paragraph, the
      Issuers, at their expense, shall cause notice of such record date, the proposed
      action by Holders and the applicable Expiration Date to be given to the Trustee
      in writing and to each Holder of Notes in the manner set forth in Section
      110.

     

    (ii)  The
      Trustee may set any day as a record date for the purpose of determining the
      Holders of Outstanding Notes entitled to join in the giving or making of (A)
      any
      Notice of Default, (B) any declaration of acceleration referred to in
Section
      602,
      (C) any
      request to institute proceedings referred to in Section
      607(ii)
      or (D)
      any direction referred to in Section
      612,
      in each
      case with respect to Notes. If any record date is set pursuant to this
      paragraph, the Holders of Outstanding Notes on such record date, and no other
      Holders, shall be entitled to join in such notice, declaration, request or
      direction, whether or not such Holders remain Holders after such record date;
      provided
      that no
      such action shall be effective hereunder unless taken on or prior to the
      applicable Expiration Date by Holders of the requisite principal amount of
      Outstanding Notes on such record date. Nothing in this paragraph shall be
      construed to prevent the Trustee from setting a new record date for any action
      for which a record date has previously been set pursuant to this paragraph
      (whereupon the record date previously set shall automatically and with no action
      by any Person be cancelled and of no effect), and nothing in this paragraph
      shall be construed to render ineffective any action taken by Holders of the
      requisite principal amount of Outstanding Notes on the date such action is
      taken. Promptly after any record date is set pursuant to this paragraph, the
      Trustee, at the Issuers’ expense, shall cause notice of such record date, the
      proposed action by Holders and the applicable Expiration Date to be given to
      the
      Issuers in writing and to each Holder of Notes in the manner set forth in
Section
      110.

     

    (iii)  With
      respect to any record date set pursuant to this Section
      108,
      the
      party hereto that sets such record dates may designate any day as the
“Expiration
      Date”
and
      from time to time may change the Expiration Date to any earlier or later day;
      provided
      that no
      such change shall be effective unless notice of the proposed new Expiration
      Date
      is given to the Issuers or the Trustee, whichever such party is not setting
      a
      record date pursuant to this Section
      108(e)
      in
      writing, and to each Holder of Notes in the manner set forth in Section
      110,
      on or
      prior to the existing Expiration Date. If an Expiration Date is not designated
      with respect to any record date set pursuant to this Section, the party hereto
      that set such record date shall be deemed to have initially designated the
      180th
      day after such record date as the Expiration Date with respect thereto, subject
      to its right to change the Expiration Date as provided in this paragraph.

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

    Notwithstanding
      the foregoing, no Expiration Date shall be later than the 180th day after the
      applicable record date.

     

    (iv)  Without
      limiting the foregoing, a Holder entitled hereunder to take any action hereunder
      with regard to any particular Note may do so with regard to all or any part
      of
      the principal amount of such Note or by one or more duly appointed agents each
      of which may do so pursuant to such appointment with regard to all or any part
      of such principal amount.

     

    (v)  Without
      limiting the generality of the foregoing, a Holder, including the Depositary,
      that is the Holder of a Global Note, may make, give or take, by a proxy or
      proxies duly appointed in writing, any request, demand, authorization,
      direction, notice, consent, waiver or other action provided in this Indenture
      to
      be made, given or taken by Holders or the Depositary, as the Holder of a Global
      Note, may provide its proxy or proxies to the beneficial owners of interest
      in
      any such Global Note through such depositary’s standing instructions and
      customary practices.

     

    (vi)  The
      Issuers may fix a record date for the purpose of determining the persons who
      are
      beneficial owners of interests in any Global Note held by the Depositary
      entitled under the procedures of such depositary to make, give or take, by
      a
      proxy or proxies duly appointed in writing, any request, demand, authorization,
      direction, notice, consent, waiver or other action provided in this Indenture
      to
      be made, given or taken by Holders. If such a record date is fixed, the Holders
      on such record date or their duly appointed proxy or proxies, and only such
      persons, shall be entitled to make, give or take such request, demand,
      authorization direction, notice consent, waiver or other action, whether or
      not
      such Holders remain Holders after such record date. No such request, demand,
      authorization, direction, notice, consent, waiver or other action shall be
      valid
      or effective if made, given or taken more than 90 days after such record
      date.

     

    Section
      109.  Notices,
      etc., to Trustee and Company.
      Any
      request, demand, authorization, direction, notice, consent, waiver or Act of
      Holders or other document provided or permitted by this Indenture to be made
      upon, given or furnished to, or filed with,

     

    (1)  the
      Trustee by any Holder or by the Company or by any other obligor upon the Notes
      shall be sufficient for every purpose hereunder if made, given, furnished or
      filed in writing to or with the Trustee at One Liberty Plaza, 23rd Floor, New
      York, NY 10006, Attention: Corporate Trust Department (telephone: 212-225-5427;
      telecopier: 212-225-5436), or at any other address furnished in writing to
      the
      Company by the Trustee, or

     

    (2)  the
      Company by the Trustee or by any Holder shall be sufficient for every purpose
      hereunder if in writing and mailed, first-class postage prepaid, to the Company
      at Avis Budget Car Rental, LLC, One Campus Drive, Parsippany, NJ 07054, or
      at
      any other address previously furnished in writing to the Trustee by the
      Company.

     

    (3)  The
      Company or the Trustee, by notice to the other, may designate additional or
      different addresses for subsequent notices or communications.

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

    Section
      110.  Notices
      to Holders; Waiver.
      Where
      this Indenture provides for notice to Holders of any event, such notice shall
      be
      sufficiently given (unless otherwise herein expressly provided) if in writing
      and mailed, first-class postage prepaid, or by overnight air courier
      guaranteeing next day delivery, to each Holder affected by such event, at such
      Holder’s address as it appears in the Note Register, not later than the latest
      date, and not earlier than the earliest date, prescribed for the giving of
      such
      notice. In any case where notice to Holders is given by mail, neither the
      failure to mail such notice, nor any defect in any notice so mailed, to any
      particular Holder shall affect the sufficiency of such notice with respect
      to
      other Holders.

     

    Where
      this Indenture provides for notice in any manner, such notice may be waived
      in
      writing by the Person entitled to receive such notice, either before or after
      the event, and such waiver shall be the equivalent of such notice. Waivers
      of
      notice by Holders shall be filed with the Trustee, but such filing shall not
      be
      a condition precedent to the validity of any action taken in reliance upon
      such
      waiver.

     

    In
      case,
      by reason of the suspension of regular mail service, or by reason of any other
      cause, it shall be impossible to mail notice of any event as required by any
      provision of this Indenture, then such notification as shall be made with the
      approval of the Trustee (such approval not to be unreasonably withheld) shall
      constitute a sufficient notification for every purpose hereunder.

     

    Section
      111.  Effect
      of Headings and Table of Contents.
      The
      Article and Section headings herein and the Table of Contents are for
      convenience only and shall not affect the construction hereof.

     

    Section
      112.  Successors
      and Assigns.
      All
      covenants and agreements in this Indenture by the Issuers shall bind its
      respective successors and assigns, whether so expressed or not. All agreements
      of the Trustee in this Indenture shall bind its successors.

     

    Section
      113.  Separability
      Clause.
      In case
      any provision in this Indenture or in the Notes shall be invalid, illegal or
      unenforceable, the validity, legality and enforceability of the remaining
      provisions shall not in any way be affected or impaired thereby.

     

    Section
      114.  Benefits
      of Indenture.
      Nothing
      in this Indenture or in the Notes, express or implied, shall give to any Person,
      other than the parties hereto and their successors hereunder, any Paying Agent
      and the Holders, any benefit or any legal or equitable right, remedy or claim
      under this Indenture.

     

    Section
      115.  GOVERNING
      LAW.
      THIS
      INDENTURE AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
      THE LAWS OF THE STATE OF NEW YORK. THE TRUSTEE, THE COMPANY, ANY OTHER OBLIGOR
      IN RESPECT OF THE NOTES AND (BY THEIR ACCEPTANCE OF THE NOTES) THE HOLDERS
      AGREE
      TO SUBMIT TO THE JURISDICTION OF ANY UNITED STATES FEDERAL OR STATE COURT
      LOCATED IN THE BOROUGH OF MANHATTAN, IN THE CITY OF NEW YORK IN ANY ACTION
      OR
      PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE
      GUARANTEES.

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

    Section
      116.  Legal
      Holidays.
      In any
      case where any Interest Payment Date, Redemption Date or Stated Maturity of
      any
      Note shall not be a Business Day at any Place of Payment, then (notwithstanding
      any other provision of this Indenture or of the Notes) payment of interest
      or
      principal and premium (if any) need not be made at such Place of Payment on
      such
      date, but may be made on the next succeeding Business Day at such Place of
      Payment with the same force and effect as if made on the Interest Payment Date
      or Redemption Date, or at the Stated Maturity, and no interest shall accrue
      on
      such payment for the intervening period.

     

    Section
      117.  No
      Personal Liability of Directors, Officers, Employees, Incorporators, Equity
      Holders, Members and Stockholders.
      No
      director, officer, employee, incorporator, equity holder, member or stockholder
      of the Company, any Guarantor or any Subsidiary of any thereof shall have any
      liability for any obligation of the Company or any Guarantor under this
      Indenture, the Notes or any Guarantee, or for any claim based on, in respect
      of,
      or by reason of, any such obligation or its creation. Each Noteholder, by
      accepting the Notes, waives and releases all such liability. The waiver and
      release are part of the consideration for issuance of the Notes.

     

    Section
      118.  Exhibits
      and Schedules.
      All
      exhibits and schedules attached hereto are by this reference made a part hereof
      with the same effect as if herein set forth in full.

     

    Section
      119.  Counterparts.
      This
      Indenture may be executed in any number of counterparts, each of which shall
      be
      an original; but such counterparts shall together constitute but one and the
      same instrument.

     

    ARTICLE
      II

     

    NOTE
      FORMS

     

    Section
      201.  Forms
      Generally.
      The
      Initial Notes and Initial Additional Notes that are not Exchange Notes and
      the
      Trustee’s certificate of authentication relating thereto shall be in
      substantially the forms set forth, or referenced, in this Article
      II
      and
Exhibits
      A,
      B
      or
C,
      as
      applicable, annexed hereto. The Exchange Notes and any Additional Notes that
      are
      not Initial Additional Notes, or that are issued in a registered offering
      pursuant to the Securities Act, and the Trustee’s certificate of authentication
      relating thereto shall be in substantially the forms set forth, or referenced,
      in this Article
      II
      and
Exhibits
      D,
      E
      or
F,
      as
      applicable, annexed hereto. Each of Exhibits
      A,
      B,
      C,
      D,
      E
      and
F
      is
      hereby incorporated in and expressly made a part of this Indenture. The Notes
      may have such appropriate insertions, omissions, substitutions, notations,
      legends, endorsements, identifications and other variations as are required
      or
      permitted by law, stock exchange rule or depositary rule or usage, agreements
      to
      which the Company is subject, if any, or other customary usage, or as may
      consistently herewith be determined by the Officers of the Company executing
      such Notes, as evidenced by such execution (provided always that any such
      notation, legend, endorsement, identification or variation is in a form
      acceptable to the Company). Each Note shall be dated the date of its
      authentication. The terms of the Notes set forth in Exhibits
      A,
      B,
      C,
      D,
      E
      and
F
      are part
      of the terms of this Indenture. Any portion of the text of any Note may be
      set
      forth on the reverse thereof or attached thereto, with an appropriate reference
      thereto on the face of the Note.

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

    Initial
      Notes and any Initial Additional Notes offered and sold in reliance on Rule
      144A
      shall, unless the Issuers otherwise notify the Trustee in writing, be issued
      in
      the form of one or more permanent global Notes in substantially the form set
      forth in Exhibit
      A
      hereto
      (in the case of Floating Rate Global Notes) or Exhibit
      B
      hereto
      (in the case of 7.625% Global Notes) or Exhibit
      C
      hereto
      (in the case of 7.75% Global Notes), except as otherwise permitted herein.
      Such
      Global Notes shall be referred to collectively herein as the “Rule
      144A Global Note,”
and
      such Floating Rate Global Notes shall be referred to collectively herein as
      the
“Rule
      144A Floating Rate Global Note,”
such
      7.625% Global Notes shall be referred to collectively herein as the
“Rule
      144A 7.625% Global Note”
and
      such 7.75% Global Notes shall be referred to collectively herein as the
“Rule
      144A 7.75% Global Note.”
The
      Rule 144A Global Note shall be deposited with the Trustee, as custodian for
      the
      Depositary or its nominee, in each case for credit to an account of an Agent
      Member, and shall be duly executed by the Issuers and authenticated by the
      Trustee as hereinafter provided. The aggregate principal amount of a Rule 144A
      Global Note may from time to time be increased or decreased by adjustments
      made
      on the records of the Trustee as hereinafter provided.

     

    Initial
      Notes and any Initial Additional Notes offered and sold in offshore transactions
      in reliance on Regulation S under the Securities Act shall, unless the Issuers
      otherwise notify the Trustee in writing, be issued in the form of one or more
      temporary global Notes in substantially the form set forth in Exhibit
      A
      hereto
      (in the case of Floating Rate Global Notes) or Exhibit
      B
      hereto
      (in the case of 7.625% Global Notes) or Exhibit
      C
      hereto
      (in the case of 7.75% Global Notes), except as otherwise permitted herein.
      Such
      Global Notes shall be referred to collectively herein as the “Temporary
      Regulation S Global Note,”
and
      such Floating Rate Global Notes shall be referred to collectively herein as
      the
“Temporary
      Regulation S Floating Rate Global Note,”
such
      7.625% Global Notes shall be referred to collectively herein as the
“Temporary
      Regulation S 7.625% Global Note”
and
      such 7.75% Global Notes shall be referred to collectively herein as the
“Temporary
      Regulation S 7.75% Global Note.”
The
      Temporary Regulation S Global Note shall be deposited with the Trustee, as
      custodian for the Depositary or its nominee for the accounts of designated
      Agent
      Members holding on behalf of Euroclear or Clearstream, and shall be duly
      executed by the Issuers and authenticated by the Trustee as hereinafter
      provided. The aggregate principal amount of a Regulation S Global Note may
      from
      time to time be increased or increased by adjustments made on the records of
      the
      Trustee as hereinafter provided.

     

    Following
      the expiration of the distribution compliance period set forth in Regulation
      S
      (the “Distribution
      Compliance Period”)
      with
      respect to any Temporary Regulation S Global Note, beneficial interests in
      such
      Temporary Regulation S Global Note shall be exchanged as provided in
Sections
      312
      and
313
      for
      beneficial interests in one or more permanent global Notes in substantially
      the
      form set forth in Exhibit
      A
      hereto
      (in the case of Floating Rate Global Notes) or Exhibit
      B
      hereto
      (in the case of 7.625% Global Notes) or Exhibit
      C
      hereto
      (in the case of 7.75% Global Notes), except as otherwise permitted herein.
      Such
      Global Notes shall be referred to collectively herein as the “Permanent
      Regulation S Global Note,”
and
      such Floating Rate Global Notes shall be referred to collectively herein as
      the
“Permanent
      Regulation S Floating Rate Global Note,”
such
      7.625% Global Notes shall be referred to collectively herein as the
“Permanent
      Regulation S 7.625% Global Note”
and
      such 7.75% Global Notes shall be referred to collectively herein as the
“Permanent
      Regulation S 7.75% Global Note.”
The
      

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

    Permanent
      Regulation S Global Notes and the Temporary Regulation S Global Notes shall
      be
      referred to collectively herein as the “Regulation
      S Global Notes.”
The
      Permanent Regulation S Global Note shall be deposited with the Trustee, as
      custodian for the Depositary or its nominee for credit to the account of an
      Agent Member, and shall be duly executed by the Issuers and authenticated by
      the
      Trustee as hereinafter provided. Simultaneously with the authentication of
      a
      Permanent Regulation S Global Note, the Trustee shall cancel the related
      Temporary Regulation S Global Note.

     

    Subject
      to the limitations on the issuance of certificated Notes set forth in
Sections
      312
      and
313,
      Initial
      Notes and any Initial Additional Notes issued pursuant to Section 305
      in
      exchange for or upon transfer of beneficial interests (x) in a Rule 144A Global
      Note shall be in the form of permanent certificated Notes substantially in
      the
      form set forth in Exhibit
      A
      hereto
      (in the case of Floating Rate Notes) or Exhibit
      B
      hereto
      (in the case of 7.625% Notes) or Exhibit
      C
      hereto
      (in the case of 7.75% Notes) (the “Rule
      144A Physical Notes”)
      or (y)
      in a Regulation S Global Note (if any), on or after the Regulation S Note
      Exchange Date with respect to such Regulation S Global Note, shall be in the
      form of permanent certificated Notes substantially in the form set forth in
      Exhibit
      A
      hereto
      (in the case of Floating Rate Notes) or Exhibit
      B
      hereto
      (in the case of 7.625% Notes) or Exhibit
      C
      hereto
      (in the case of 7.75% Notes) (the “Regulation
      S Physical Notes”),
      respectively, as hereinafter provided.

     

    The
      Rule
      144A Physical Notes and Regulation S Physical Notes shall be construed to
      include any certificated Notes issued in respect thereof pursuant to
Section
      304,
      305,
      306
      or
1008,
      and the
      Rule 144A Global Notes and Regulation S Global Notes shall be construed to
      include any global Notes issued in respect thereof pursuant to Section
      304,
      305,
      306
      or
1008.
      The
      Rule 144A Physical Notes and the Regulation S Physical Notes, together with
      any
      other certificated Notes issued and authenticated pursuant to this Indenture,
      are sometimes collectively herein referred to as the “Physical
      Notes.”
The
      Rule 144A Global Notes and the Regulation S Global Notes, together with any
      other global Notes that are issued and authenticated pursuant to this Indenture,
      are sometimes collectively referred to as the “Global
      Notes.”

     

    Exchange
      Notes shall be issued substantially in the form set forth in Exhibit
      D
      hereto
      (in the case of Exchange Floating Rate Notes) or Exhibit
      E
      hereto
      (in the case of Exchange 7.625% Notes) or Exhibit
      F
      hereto
      (in the case of Exchange 7.75% Notes) and, subject to Section
      312(b),
      shall
      be in the form of one or more Global Notes. Floating Rate Notes issued in the
      form of a Global Note are sometimes collectively referred to as “Floating
      Rate Global Notes,”
7.625%
      Notes issued in the form of a Global Note are sometimes collectively referred
      to
      as “7.625%
      Global Notes”
and
      7.75% Notes issued in the form of a Global Note are sometimes collectively
      referred to as “7.75%
      Global Notes.”

     

    Section
      202.  Form
      of Trustee’s Certificate of Authentication.
      The
      Notes will have endorsed thereon a Trustee’s certificate of authentication in
      substantially the following form:

     

    This
      is
      one of the Notes referred to in the within-mentioned Indenture.

     

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

     

     

    

      
        	 	 	 	 
	 	 	 	 
	 	 	
                as
                  Trustee

                 

                 

              	 
	 	
                By:

              	 	 
	 	 	
                Authorized
                  officer

              	 
	
                 

                Dated:

              	 	 	 

      

    

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

    

    If
      an
      appointment of an Authenticating Agent is made pursuant to Section
      714,
      the
      Notes may have endorsed thereon, in lieu of the Trustee’s certificate of
      authentication, an alternative certificate of authentication in substantially
      the following form:

     

    This
      is
      one of the Notes referred to in the within-mentioned Indenture.

     

    

      
        	 	 	
                THE
                  BANK OF NOVA SCOTIA TRUST COMPANY OF NEW YORK

                As
                  Trustee

                 

              	 
	 	
                By:

              	 	 
	 	 	
                As
                  Authenticating Agent

                 

              	 
	 	
                By:

              	 	 
	 	 	
                Authorized
                  officer

              	 
	
                Dated:

                 

              	 	 	 

      

    

     

    
    

    Section
      203.  Restrictive
      and Global Note Legends.
      Each
      Global Note and Physical Note (and all Notes issued in exchange therefor or
      substitution thereof) shall bear the following legend set forth below (the
      “Private
      Placement Legend”)
      on the
      face thereof until the Private Placement Legend is removed or not required
      in
      accordance with Section
      313(4):

     

    THIS
      NOTE
      HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
      “SECURITIES
      ACT”),
      OR
      UNDER THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS
      NOTE
      NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
      TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF WITHIN THE UNITED
      STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET
      FORTH
      BELOW. EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS
      NOTE MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE
      SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER OR ANOTHER EXEMPTION UNDER
      THE
      SECURITIES ACT.

     

    THE
      HOLDER OF THIS NOTE (1) REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL
      BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT), (B) IT IS NOT A U.S.
      PERSON AND IS ACQUIRING THIS NOTE IN AN OFFSHORE TRANSACTION IN COMPLIANCE
      WITH
      RULE 904 UNDER THE SECURITIES ACT OR (C) IT IS AN “INSTITUTIONAL” ACCREDITED
      INVESTOR (AS DEFINED IN RULE 501(A)(1), (2), (3), OR (7) UNDER REGULATION D
      PROMULGATED UNDER THE SECURITIES ACT (AN “ACCREDITED
      INVESTOR”)
      AND
      (2) AGREES THAT IT WILL NOT WITHIN [TWO
      YEARS-FOR NOTES ISSUED PURSUANT TO RULE 144A] [40 DAYS-FOR NOTES ISSUED IN
      OFFSHORE TRANSACTIONS PURSUANT TO REGULATION S] AFTER
      THE
      LATER OF THE DATE OF THE ORIGINAL ISSUANCE OF THIS NOTE AND THE DATE ON WHICH
      THE COMPANY OR ANY OF ITS AFFILIATES OWNED SUCH NOTE, OFFER, RESELL OR OTHERWISE
      TRANSFER THIS NOTE EXCEPT (A) (I) TO THE COMPANY OR ANY SUBSIDIARY THEREOF,
      (II)
      FOR SO 

     

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

    LONG
      AS
      THIS NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES
      ACT
      INSIDE THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS
      A
      QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES
      ACT, (III) INSIDE THE UNITED STATES TO AN ACCREDITED INVESTOR THAT IS ACQUIRING
      THE NOTES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN ACCREDITED INVESTOR,
      IN EACH CASE IN A MINIMUM PRINCIPAL AMOUNT OF THE NOTES OF $250,000, FOR
      INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR THE OFFER OR SALE IN
      CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, AND THAT
      PRIOR TO SUCH TRANSFER, FURNISHES (OR HAS FURNISHED ON ITS BEHALF BY A U.S.
      BROKER-DEALER) TO THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS
      AND AGREEMENTS RELATING TO THE RESTRICTIONS ON TRANSFER OF THIS NOTE (THE FORM
      OF WHICH LETTER CAN BE OBTAINED FROM THE TRUSTEE FOR THIS NOTE), (IV) OUTSIDE
      THE UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER
      THE SECURITIES ACT (IF AVAILABLE), (V) PURSUANT TO THE EXEMPTION FROM
      REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE),
      (VI)
      IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
      THE
      SECURITIES ACT, OR (VII) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
      THE SECURITIES ACT AND (B) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS
      OF
      THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS. THE HOLDER OF THIS
      NOTE
      FURTHER AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED
      A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IN CONNECTION WITH ANY
      TRANSFER OF THIS NOTE PURSUANT TO SUBCLAUSES (III) TO (VI) OF CLAUSE (A) ABOVE,
      THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE TRUSTEE AND THE COMPANY
      SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS EITHER OF THEM
      MAY
      REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO
      AN
      EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT. AS USED HEREIN, THE TERMS “OFFSHORE
      TRANSACTION,” “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANING GIVEN TO THEM
      BY REGULATION S UNDER THE SECURITIES ACT.

     

    Each
      Global Note, whether or not an Initial Note, shall also bear the following
      legend on the face thereof:

     

    UNLESS
      THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
      TRUST COMPANY, A NEW YORK CORPORATION (“DTC”)
      TO THE
      COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND
      ANY
      CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
      NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
      IS
      MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
      REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER 

     

    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

    

    USE
      HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
      REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     

    TRANSFERS
      OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART,
      TO
      NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE
      AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS
      MADE
      IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN SECTIONS 312 AND 313 OF THE
      INDENTURE (AS DEFINED HEREIN).

     

    Each
      Temporary Regulation S Global Note shall also bear the following legend on
      the
      face thereof:

     

    EXCEPT
      AS
      SPECIFIED IN THE INDENTURE, BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY
      REGULATION S GLOBAL NOTE WILL NOT BE EXCHANGEABLE FOR INTERESTS IN THE PERMANENT
      REGULATION S GLOBAL NOTE OR ANY OTHER NOTE REPRESENTING AN INTEREST IN THE
      NOTES
      REPRESENTED HEREBY WHICH DO NOT CONTAIN A LEGEND CONTAINING RESTRICTIONS ON
      TRANSFER, UNTIL THE EXPIRATION of THE “40 DAY DISTRIBUTION COMPLIANCE PERIOD”
(WITHIN THE MEANING of RULE 903(b)(2) of REGULATION S UNDER THE SECURITIES
      ACT).
      DURING SUCH 40 DAY DISTRIBUTION COMPLIANCE PERIOD, BENEFICIAL OWNERSHIP
      INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL NOTE MAY ONLY BE SOLD, PLEDGED
      OR TRANSFERRED THROUGH EUROCLEAR BANK S.A./N.A., AS OPERATOR of THE EUROCLEAR
      SYSTEM, OR CLEARSTREAM BANKING, SOCIÉTÉ ANONYME.

     

    ARTICLE
      III

     

    THE
      NOTES

     

    Section
      301.  Title
      and Terms.
      The
      aggregate principal amount of Notes that may be authenticated and delivered
      and
      Outstanding under this Indenture will be limited. The Initial Floating Rate
      Notes will be issued in an aggregate principal amount of $250 million, the
      Initial 7.625% Notes will be issued in an aggregate principal amount of $375
      million and the Initial 7.75% Notes will be issued in an aggregate principal
      amount of $375 million. The Floating Rate Notes, the 7.625% Notes and the 7.75%
      Notes will each be issued as a separate series, but, except as otherwise
      provided in Section
      902,
      shall
      vote and consent together on all matters as one class, and, except as provided
      in Section
      902,
      none of
      the Notes will have the right to vote or consent as a class separate from one
      another on any matter. Additional Notes (including any Exchange Notes issued
      in
      exchange therefor) will vote (or consent) as a class with the other Notes
      (except as otherwise provided in Section
      902)
      and
      otherwise be treated as Notes for all purposes of this Indenture.

     

    The
      Floating Rate Notes shall be known and designated as the “Floating Rate Senior
      Notes due 2014” of the Issuers. The Floating Rate Notes will mature on
      May 15, 2014. Each Floating Rate Note will bear interest at a rate per
      annum, reset quarterly, equal to LIBOR 

     

    
      
        
        

      

      
        51

        
          

        

      

      
        
        

      

    

    plus
      2.50%, as determined by the calculation agent (the “Calculation Agent”), which
      shall initially be the Trustee. 

     

       Interest
      on the Floating Rate Notes will be payable quarterly in cash to Holders of
      record at the close of business on the
      February 1, May 1, August 1 and November 1
      immediately preceding the interest payment date (each such February 1, May
      1,
      August 1 and November 1, a “Regular
      Record Date”),
      on
      February 15, May 15, August 15 and November 15 of each year,
      commencing August 15, 2006. Interest will be paid on the basis of a 360-day
      year for the actual number of days elapsed and accrue from the date of original
      issuance. 

     

    The
      amount of interest for each day that the Floating Rate Notes are outstanding
      (the “Daily Interest Amount”) will be calculated by dividing the interest rate
      in effect for such day by 360 and multiplying the result by the principal amount
      of the Floating Rate Notes then outstanding. The amount of interest to be paid
      on the Floating Rate Notes for each Interest Period will be calculated by adding
      the Daily Interest Amount for each day in the Interest Period. All percentages
      resulting from any of the above calculations will be rounded, if necessary,
      to
      the nearest one hundred thousandth of a percentage point, with five
      one-millionths of a percentage point being rounded upwards and all dollar
      amounts used in or resulting from such calculations will be rounded to the
      nearest cent (with one-half cent being rounded upwards). 

     

    The
      Calculation Agent will, upon the request of any Holder of Floating Rate Notes,
      provide the interest rate then in effect with respect to the Floating Rate
      Notes. All calculations made by the Calculation Agent in the absence of manifest
      error will be conclusive for all purposes and binding on the Issuers, the
      Guarantors and the Holders of the Floating Rate Notes. 

    The
      7.625% Notes shall be known and designated as the “7.625% Senior Notes due 2014”
of the Issuers. The 7.625% Notes will mature on May 15, 2014. Each 7.625%
      Note will bear interest at a rate per annum of 7.625%. 

     

    The
      7.75%
      Notes shall be known and designated as the “7.75% Senior Notes due 2016” of the
      Issuers. The 7.75% Notes will mature on May 15, 2016. Each 7.75% Note will
      bear interest at a rate per annum of 7.75%. 

     

    Interest
      on the 7.625% Notes and the 7.75% Notes will be payable semiannually in cash
      to
      Holders of record at the close of business on the May 1 and November 1
      immediately preceding the interest payment date (each such May 1 and November
      1,
      a “Regular
      Record Date”),
      on
      May 15 and November 15 of each year, commencing November 15, 2006. Interest
      will
      be paid on the basis of a 360-day year consisting of twelve 30-day months and
      accrue from the date of original issuance. 

     

    Interest
      on the Original Notes will accrue from the most recent date to which interest
      has been paid or duly provided for or, if no interest has been paid, from April
      19, 2006; and interest on any Additional Notes (and Exchange Notes issued in
      exchange therefor) will accrue (or will be deemed to have accrued) from the
      most
      recent date to which interest has been paid or duly provided for or, if no
      interest has been paid on such Additional Notes, from the Interest Payment
      Date
      immediately preceding the date of issuance of such Additional Notes, or if
      the
      date of issuance of such Additional Notes is an Interest Payment Date, from
      such
      date of 

     

    
      
        
        

      

      
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    issuance;
      provided
      that if
      any Note is surrendered for exchange on or after a record date for an Interest
      Payment Date that will occur on or after the date of such exchange, interest
      on
      the Note received in exchange thereof will accrue from the date of such Interest
      Payment Date.

     

    Section
      302.  Denominations.
      The
      Floating Rate Notes, the 7.625% Notes and the 7.75% Notes shall be issuable
      only
      in fully registered form, without coupons, and only in minimum denominations
      of
      $2,000 or, if greater at the Issue Date, the dollar equivalent of €1,000 rounded
      up to the nearest $1,000 and any integral multiple of $1,000 in excess thereof.
      

     

    Section
      303.  Execution,
      Authentication and Delivery and Dating.
      The
      Notes shall be executed on behalf of the Issuers by one Officer of each of
      them.
      The signature of any such Officer on the Notes may be manual or by facsimile.
      Notes bearing the manual or facsimile signature of an individual who was at
      any
      time an Officer of any Issuer shall bind such Issuer, notwithstanding that
      such
      individual has ceased to hold such office prior to the authentication and
      delivery of such Notes or did not hold such office at the date of such
      Notes.

     

    At
      any
      time and from time to time after the execution and delivery of this Indenture,
      the Issuers may deliver Notes executed by the Issuers to the Trustee for
      authentication; and the Trustee shall authenticate and deliver (i) Initial
      Floating Rate Notes for original issue in the aggregate principal amount not
      to
      exceed $250 million, Initial 7.625% Notes for original issue in the aggregate
      principal amount not to exceed $375 million and Initial 7.75% Notes for original
      issue in the aggregate principal amount not to exceed $375 million, (ii)
      Additional Notes in one or more series from time to time for original issue
      in
      aggregate principal amounts specified by the Issuers and (iii) Exchange Notes
      from time to time for issue in exchange for a like principal amount of Initial
      Notes or Initial Additional Notes, in each case specified in clauses (i) through
      (iii) above, upon a written order of the Issuers in the form of an Officer’s
      Certificate of each of the Issuers (an “Authentication
      Order”).
      Such
      Officer’s Certificate shall specify the amount of Notes to be authenticated and
      the date on which the Notes are to be authenticated, the “CUSIP”, “Common Code”
or other similar identification numbers of such Notes, if any, whether the
      Notes
      are to be Floating Rate Notes, 7.625% Notes or 7.75% Notes, whether the Notes
      are to be Initial Notes, Additional Notes or Exchange Notes and whether the
      Notes are to be issued as one or more Global Notes or Physical Notes and such
      other information as the Issuers may include or the Trustee may reasonably
      request.

     

    All
      Notes
      shall be dated the date of their authentication.

     

    No
      Note
      shall be entitled to any benefit under this Indenture or be valid or obligatory
      for any purpose, unless there appears on such Note a certificate of
      authentication substantially in the form provided for herein executed by the
      Trustee by manual signature, and such certificate upon any Note shall be
      conclusive evidence, and the only evidence, that such Note has been duly
      authenticated and delivered hereunder.

     

    Section
      304.  Temporary
      Notes.
      Until
      definitive Notes are ready for delivery, the Issuers may prepare and upon
      receipt of an Authentication Order the Trustee shall authenticate temporary
      Notes. Temporary Notes shall be substantially in the form of definitive Notes
      but may have variations that the Issuers consider appropriate for temporary
      Notes. If temporary Notes are issued, the Issuers will cause definitive Notes
      to
      be prepared without 

     

    
      
        
        

      

      
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    unreasonable
      delay. After the preparation of definitive Notes, the temporary Notes shall
      be
      exchangeable for definitive Notes upon surrender of the temporary Notes at
      the
      office or agency of the Issuers in a Place of Payment, without charge to the
      Holder. Upon surrender for cancellation of anyone or more temporary Notes the
      Issuers shall execute and upon receipt of an Authentication Order the Trustee
      shall authenticate and deliver in exchange therefor a like principal amount
      of
      definitive Notes of authorized denominations. Until so exchanged the temporary
      Notes shall in all respects be entitled to the same benefits under this
      Indenture as definitive Notes of the same series and tenor.

     

    Section
      305.  Registrar
      and Paying Agent.
      The
      Issuers shall cause to be kept at the Corporate Trust Office of the Trustee
      a
      register (the register maintained in such office and in any other office or
      agency of the Issuers in a Place of Payment being herein sometimes collectively
      referred to as the “Note
      Register”)
      in
      which, subject to such reasonable regulations as it may prescribe, the Issuers
      shall provide for the registration of Notes and of transfers of Notes. The
      Issuers may have one or more co-registrars. The term “Note
      Registrar”
      includes any co-registrars. 

     

    The
      Issuers shall also maintain an office or agent within the United States where
      Notes may be presented for payment (the “Paying
      Agent”);
      provided,
      however,
      that at
      the option of the Issuers payment of interest on a Note may be made by check
      mailed to the address of the Person entitled thereto as such address shall
      appear in the Note Register. The Issuers may have one or more additional paying
      agents, and the term “Paying
      Agent”
      includes any such additional Paying Agent.

     

    The
      Issuers initially appoint the Trustee as “Note Registrar” and “Paying Agent” in
      connection with the Notes, until such time as such entity has resigned or a
      successor has been appointed. The Issuers may change the Paying Agent or Note
      Registrar for any series of Notes without prior notice to the Holders of Notes.
      The Issuers may enter into an appropriate agency agreement with any Note
      Registrar or Paying Agent not a party to this Indenture. Any such agency
      agreement shall implement the provisions of this Indenture that relate to such
      agent. The Issuers shall notify the Trustee in writing of the name and address
      of any such agent. If the Issuers fail to appoint or maintain a Note Registrar
      or Paying Agent, the Trustee shall act as such and shall be entitled to
      appropriate compensation therefor pursuant to Section
      707.
      The
      Company or any wholly-owned Domestic Subsidiary of the Company may act as Paying
      Agent, Note Registrar or transfer agent.

     

    Upon
      surrender for transfer of any Note at the office or agency of the Issuers in
      a
      Place of Payment, in compliance with all applicable requirements of this
      Indenture and applicable law, the Issuers shall execute, and the Trustee shall
      authenticate and deliver, in the name of the designated transferee or
      transferees, one or more new Notes of the same series, of any authorized
      denominations and of a like aggregate principal amount.

     

    At
      the
      option of the Holder, Notes may be exchanged for other Notes of the same series,
      of any authorized denominations and of a like tenor and aggregate principal
      amount, upon surrender of the Notes to be exchanged at such office or agency.
      Whenever any Notes are so surrendered for exchange, the Issuers shall execute,
      and the Trustee shall authenticate and deliver, the Notes that the Holder making
      the exchange is entitled to receive.

     

    
      
        
        

      

      
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    All
      Notes
      issued upon any transfer or exchange of Notes shall be the valid obligations
      of
      the Issuers, evidencing the same debt, and entitled to the same benefits under
      this Indenture, as the Notes surrendered upon such transfer or
      exchange.

     

    Every
      Note presented or surrendered for transfer or exchange shall (if so required
      by
      the Issuers or the Trustee) be duly endorsed, or be accompanied by a written
      instrument of transfer in form satisfactory to the Issuers and the Note
      Registrar duly executed, by the Holder thereof or such Holder’s attorney duly
      authorized in writing.

     

    No
      service charge shall be made for any registration, transfer or exchange of
      Notes, but the Issuers may require payment of a sum sufficient to cover any
      transfer tax or other governmental charge that may be imposed in connection
      therewith.

     

    The
      Issuers shall not be required (i) to issue, transfer or exchange any Note during
      a period beginning at the opening of business 15 Business Days before the day
      of
      the mailing of a notice of redemption (or purchase) of Notes selected for
      redemption (or purchase) under Section
      1004
      and
      ending at the close of business on the day of such mailing, or (ii) to transfer
      or exchange any Note so selected for redemption (or purchase) in whole or in
      part.

     

    Section
      306.  Mutilated,
      Destroyed, Lost and Stolen Notes.
      If a
      mutilated Note is surrendered to the Note Registrar or if the Holder of a Note
      claims that the Note has been lost, destroyed or wrongfully taken, the Issuers
      shall issue and the Trustee shall authenticate a replacement Note if the
      requirements of Section 8-405 of the Uniform Commercial Code are met, such
      that
      the Holder (a) satisfies the Issuers or the Trustee within a reasonable time
      after such Holder has notice of such loss, destruction or wrongful taking and
      the Note Registrar does not register a transfer prior to receiving such
      notification, (b) makes such request to the Issuers or the Trustee prior to
      the
      Note being acquired by a protected purchaser as defined in Section 8303 of
      the
      Uniform Commercial Code (a “protected purchaser”) and (c) satisfies any other
      reasonable requirements of the Trustee. If required by the Trustee or the
      Issuers, such Holder shall furnish an indemnity bond sufficient in the judgment
      of the Trustee to protect the Issuers, the Trustee, a Paying Agent and the
      Note
      Registrar from any loss that any of them may suffer if a Note is
      replaced.

     

    In
      case
      any such mutilated, destroyed, lost or stolen Note has become or is about to
      become due and payable, the Issuers in their discretion may, instead of issuing
      a new Note, pay such Note.

     

    Upon
      the
      issuance of any new Note under this Section
      306,
      the
      Issuers may require the payment of a sum sufficient to cover any tax or other
      governmental charge that may be imposed in relation thereto and any other
      expenses (including the fees and expenses of the Trustee) connected
      therewith.

     

    Every
      new
      Note issued pursuant to this Section
      306
      in lieu
      of any destroyed, lost or stolen Note shall constitute an original additional
      contractual obligation of the Issuers, whether or not the destroyed, lost or
      stolen Note shall be at any time enforceable by anyone, and shall be entitled
      to
      all the benefits of this Indenture equally and ratably with any and all other
      Notes duly issued hereunder.

     

    
      
        
        

      

      
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    The
      provisions of this Section
      306
      are
      exclusive and shall preclude (to the extent lawful) all other rights and
      remedies with respect to the replacement or payment of mutilated, destroyed,
      lost or stolen Notes.

     

    Section
      307.  Payment
      of Interest Rights Preserved.
      Interest on any Note that is payable, and is punctually paid or duly provided
      for, on any Interest Payment Date shall be paid to the Person in whose name
      that
      Note (or one or more Predecessor Notes) is registered at the close of business
      on the Regular Record Date for such interest specified in Section
      301.

     

    Any
      interest on any Note that is payable, but is not punctually paid or duly
      provided for, on any Interest Payment Date (herein called “Defaulted
      Interest”)
      shall
      forthwith cease to be payable to the registered Holder on the relevant Regular
      Record Date by virtue of having been such Holder; and such Defaulted Interest
      may be paid by the Issuers, at their election, as provided in clause (1) or
      clause (2) below:

     

    (1)  The
      Issuers may elect to make payment of any Defaulted Interest to the Persons
      in
      whose names the Notes (or their respective Predecessor Notes) are registered
      at
      the close of business on a Special Record Date for the payment of such Defaulted
      Interest, which shall be fixed in the following manner. The Issuers shall notify
      the Trustee and Paying Agent in writing of the amount of Defaulted Interest
      proposed to be paid on each Note and the date of the proposed payment, and
      at
      the same time the Issuers shall deposit with the Trustee or Paying Agent an
      amount of money equal to the aggregate amount proposed to be paid in respect
      of
      such Defaulted Interest or shall make arrangements reasonably satisfactory
      to
      the Trustee or Paying Agent for such deposit prior to the date of the proposed
      payment, such money when deposited to be held in trust for the benefit of the
      Persons entitled to such Defaulted Interest as provided in this clause (1).
      Thereupon the Trustee shall fix a Special Record Date for the payment of such
      Defaulted Interest which shall be not more than 15 nor less than 10 days prior
      to the date of the proposed payment and not less than 10 days after the receipt
      by the Trustee and the Paying Agent of the notice of the proposed payment.
      The
      Trustee shall promptly notify the Issuers of such Special Record Date and,
      in
      the name and at the expense of the Issuers, shall cause notice of the proposed
      payment of such Defaulted Interest and the Special Record Date therefor to
      be
      mailed, first class postage prepaid, to each Holder at such Holder’s address as
      it appears in the Note Register, not less than 10 days prior to such Special
      Record Date. Notice of the proposed payment of such Defaulted Interest and
      the
      Special Record Date therefor having been so mailed, such Defaulted Interest
      shall be paid to the Persons in whose names the Notes (or their respective
      Predecessor Notes) are registered on such Special Record Date and shall no
      longer be payable pursuant to the following clause (2).

     

    (2)  The
      Issuers may make payment of any Defaulted Interest in any other lawful manner
      not inconsistent with the requirements of any securities exchange on which
      the
      Notes may be listed, and upon such notice as may be required by such exchange,
      if, after notice given by the Issuers to the Trustee and the Paying Agent of
      the
      proposed payment pursuant to this clause (2), such payment shall be deemed
      practicable by the Trustee.

     

    
      
        
        

      

      
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    Subject
      to the foregoing provisions of this Section
      307,
      each
      Floating Rate Note, each 7.625% Note and each 7.75% Note delivered under this
      Indenture upon transfer of or in exchange for or in lieu of any other Note
      of
      the same series shall carry the rights to interest accrued and unpaid, and
      to
      accrue, that were carried by such other Note of such series.

     

    Section
      308.  Persons
      Deemed Owners.
      The
      Issuers, any Guarantor, the Trustee, the Paying Agent and any agent of any
      of
      them may treat the Person in whose name any Note is registered as the owner
      of
      such Note for the purpose of receiving payment of principal of (and premium,
      if
      any), and (subject to Section
      307)
      interest on, such Note and for all other purposes whatsoever, whether or not
      such Note be overdue, and neither the Issuers, any Guarantor, the Trustee,
      the
      Paying Agent nor any agent of any of them shall be affected by notice to the
      contrary.

     

    Section
      309.  Cancellation.
      All
      Notes surrendered for payment, redemption, transfer, exchange or conversion
      shall, if surrendered to any Person other than the Trustee, be delivered to
      the
      Trustee and, if not already cancelled, shall be promptly cancelled by it. The
      Issuers may at any time deliver to the Trustee for cancellation any Notes
      previously authenticated and delivered hereunder that any of them may have
      acquired in any manner whatsoever, and all Notes so delivered shall be promptly
      cancelled by the Trustee. No Notes shall be authenticated in lieu of or in
      exchange for any Notes cancelled as provided in this Section, except as
      expressly permitted by this Indenture. All cancelled Notes held by the Trustee
      shall be disposed of by the Trustee in accordance with its customary procedures
      (subject to the record retention requirements of the Exchange Act).

     

    Section
      310.  Computation
      of Interest.
      Interest on the Notes shall be computed as set forth in the Notes.

     

    Section
      311.  CUSIP
      Numbers, Etc.
      The
      Issuers in issuing the Notes may use “CUSIP” numbers and “Common Code” numbers
      (if then generally in use), and if so, the Trustee may use the CUSIP numbers
      and
“Common Code” numbers in notices of redemption or exchange as a convenience to
      Holders; provided,
      however,
      that
      any such notice may state that no representation is made as to the correctness
      or accuracy of such numbers printed in the notice or on the Notes; that reliance
      may be placed only on the other identification numbers printed on the Notes;
      and
      that any redemption shall not be affected by any defect in or omission of such
      numbers.

     

    Section
      312.  Book-Entry
      Provisions for Global Notes.
      (a) Each
      Global Note initially shall (i) be registered in the name of the Depositary
      for
      such Global Note or the nominee of such Depositary, in each case for credit
      to
      the account of an Agent Member, and (ii) be delivered to the Trustee as
      custodian for such Depositary. Neither of the Issuers nor any of their agents
      shall have any responsibility or liability for any aspect of the records
      relating to or payments made on account of beneficial ownership interests of
      a
      Global Note, or for maintaining, supervising or reviewing any records relating
      to such beneficial ownership interests.

     

    Members
      of, or participants in, the Depositary, Euroclear or Clearstream (“Agent
      Members”)
      shall
      have no rights under this Indenture with respect to any Global Note held on
      their behalf by the Depositary, or its custodian, or under such Global Notes.
      The Depositary may 

     

    
      
        
        

      

      
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    be
      treated by the Issuers, any other obligor upon the Notes, the Trustee and any
      agent of any of them as the absolute owner of the Global Notes for all purposes
      whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the
      Issuers, any other obligor upon the Notes, the Trustee or any agent of any
      of
      them from giving effect to any written certification, proxy or other
      authorization furnished by the Depositary, or impair, as between the Depositary,
      Euroclear or Clearstream, as the case may be, and their respective Agent
      Members, the operation of customary practices governing the exercise of the
      rights of a beneficial owner of any Note. The registered Holder of a Global
      Note
      may grant proxies and otherwise authorize any Person, including Agent Members
      and Persons that may hold interests through Agent Members, to take any action
      that a Holder is entitled to take under this Indenture or the
      Notes.

     

    (b)  Transfers
      of a Global Note shall be limited to transfers of such Global Note in whole,
      but, subject to the immediately succeeding sentence, not in part, to the
      Depositary, its successors or their respective nominees. Interests of beneficial
      owners in a Global Note may not be transferred or exchanged for Physical Notes
      unless (i) the Issuers have consented thereto in writing, or such transfer
      or
      exchange is made pursuant to the next sentence, and (ii) such transfer or
      exchange is in accordance with the applicable rules and procedures of the
      Depositary, Euroclear or Clearstream, as the case may be, and the provisions
      of
Sections
      305
      and
313.
      Subject
      to the limitation on issuance of Physical Notes set forth in Section
      313(3),
      Physical Notes shall be transferred to all beneficial owners in exchange for
      their beneficial interests in the relevant Global Note, if (i) the Depositary
      notifies the Issuers at any time that it is unwilling or unable to continue
      as
      Depositary for the Global Notes and a successor depositary is not appointed
      within 120 days; (ii) the Depositary ceases to be registered as a “Clearing
      Agency” under the Securities Exchange Act of 1934 and a successor depositary is
      not appointed within 120 days; (iii) the Issuers, at their option, notify the
      Trustee that they elect to cause the issuance of Physical Notes; or (iv) an
      Event of Default shall have occurred and be continuing with respect to the
      Notes
      and the Trustee has received a written request from the Depositary to issue
      Physical Notes.

     

    (c)  In
      connection with any transfer or exchange of a portion of the beneficial interest
      in any Global Note to beneficial owners for Physical Notes pursuant to
Section
      312(b),
      the
      Note Registrar shall record on its books and records the date and a decrease
      in
      the principal amount of such Global Note in an amount equal to the beneficial
      interest in the Global Note being transferred, and the Issuers shall execute,
      and the Trustee shall authenticate and deliver, one or more Physical Notes
      of
      like tenor and principal amount of authorized denominations.

     

    (d)  In
      connection with a transfer of an entire Global Note to beneficial owners
      pursuant to Section
      312(b),
      the
      applicable Global Note shall be deemed to be surrendered to the Trustee for
      cancellation, and the Issuers shall execute, and the Trustee shall authenticate
      and deliver, to each beneficial owner identified by the Depositary, Euroclear
      or
      Clearstream, as the case may be, in exchange for its beneficial interest in
      the
      applicable Global Note, an equal aggregate principal amount at maturity of
      Rule
      144A Physical Notes (in the case of any Rule 144A Global Note) or Regulation
      S
      Physical Notes (in the case of any Regulation S Global Note), as the case may
      be, of authorized denominations.

     

    (e)  The
      transfer and exchange of a Global Note or beneficial interests therein shall
      be
      effected through the Depositary, in accordance with this Indenture (including
      applicable 

     

    
      
        
        

      

      
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    restrictions
      on transfer set forth in Section
      313)
      and the
      procedures therefor of the Depositary, Euroclear or Clearstream, as the case
      may
      be. Any beneficial interest in one of the Global Notes that is transferred
      to a
      Person who takes delivery in the form of an interest in a different Global
      Note
      will, upon transfer, cease to be an interest in such Global Note and become
      an
      interest in the other Global Note and, accordingly, will thereafter be subject
      to all transfer restrictions, if any, and other procedures applicable to
      beneficial interests in such other Global Note for as long as it remains such
      an
      interest. A transferor of a beneficial interest in a Global Note shall deliver
      to the Note Registrar a written order given in accordance with the procedures
      of
      the Depositary or of Euroclear or Clearstream, as applicable, containing
      information regarding the participant account of the Depositary to be credited
      with a beneficial interest in the relevant Global Note. Subject to Section
      313,
      the
      Note Registrar shall, in accordance with such instructions, instruct the
      Depositary or Euroclear or Clearstream, as applicable, to credit to the account
      of the Person specified in such instructions a beneficial interest in such
      Global Note and to debit the account of the Person making the transfer the
      beneficial interest in the Global Note being transferred.

     

    (f)  Any
      Physical Note delivered in exchange for an interest in a Global Note pursuant
      to
Section
      312(b)
      shall,
      unless such exchange is made on or after the Resale Restriction Termination
      Date
      applicable to such Note and except as otherwise provided in Section
      203
      and
Section
      313,
      bear
      the Private Placement Legend.

     

    (g)  Notwithstanding
      the foregoing, through the Restricted Period, a beneficial interest in a
      Regulation S Global Note may be held only through Euroclear or Clearstream,
      or
      designated Agent Members holding on behalf of Euroclear or Clearstream, unless
      delivery is made in accordance with the applicable provisions of Section
      313.

     

    (h)  The
      Holder of any Global Note may grant proxies and otherwise authorize any Person,
      including Agent Members and Persons that may hold interests through Agent
      Members, to take any action which a Holder is entitled to take under this
      Indenture or the Notes.

     

    Section
      313.  Special
      Transfer Provisions.

     

    (1)  Transfers
      to Non-U.S. Persons.
      The
      following provisions shall apply with respect to the registration of any
      proposed transfer of a Note that is a Restricted Security to any Non-U.S.
      Person: The Note Registrar shall register such transfer if it complies with
      all
      other applicable requirements of this Indenture (including Section
      305)
      and,

     

    (a)  if
      (x)
      such transfer is after the relevant Resale Restriction Termination Date with
      respect to such Note or (y) the proposed transferor has delivered to the Note
      Registrar and the Issuers and the Trustee a Regulation S Certificate and, unless
      otherwise agreed by the Issuers and the Trustee, an opinion of counsel,
      certifications and other information satisfactory to the Issuers and the
      Trustee, and

     

    (b)  if
      the
      proposed transferor is or is acting through an Agent Member holding a beneficial
      interest in a Global Note, upon receipt by the Note Registrar and the Issuers
      and the Trustee of (x) the certificate, opinion, certifications and other
      information, if any, required by clause (a) above and (y) written instructions
      given in accordance with the procedures of the Note Registrar and of the
      Depositary;

     

    
      
        
        

      

      
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    whereupon
      (i) the Note Registrar shall reflect on its books and records the date and
      (if
      the transfer does not involve a transfer of any Outstanding Physical Note)
      a
      decrease in the principal amount of the relevant Global Note in an amount equal
      to the principal amount of the beneficial interest in the relevant Global Note
      to be transferred, and (ii) either (A) if the proposed transferee is or is
      acting through an Agent Member holding a beneficial interest in a relevant
      Regulation S Global Note, the Note Registrar shall reflect on its books and
      records the date and an increase in the principal amount of such Regulation
      S
      Global Note in an amount equal to the principal amount of the beneficial
      interest being so transferred or (B) otherwise the Issuers shall execute and
      the
      Trustee shall authenticate and deliver one or more Physical Notes of like tenor
      and amount.

     

    (2)  Transfers
      to QIBs.
      The
      following provisions shall apply with respect to the registration of any
      proposed transfer of a Note that is a Restricted Security to a QIB (excluding
      transfers to Non-U.S. Persons): The Note Registrar shall register such transfer
      if it complies with all other applicable requirements of this Indenture
      (including Section 305)
      and,

     

    (a)  if
      such
      transfer is being made by a proposed transferor who has checked the box provided
      for on the form of such Note stating, or has otherwise certified to the Note
      Registrar and the Issuers and the Trustee in writing, that the sale has been
      made in compliance with the provisions of Rule 144A to a transferee who has
      signed the certification provided for on the form of such Note stating, or
      has
      otherwise certified to Note Registrar and the Issuers and the Trustee in
      writing, that it is purchasing such Note for its own account or an account
      with
      respect to which it exercises sole investment discretion and that it and any
      such account is a QIB within the meaning of Rule 144A, and is aware that the
      sale to it is being made in reliance on Rule 144A and acknowledges that it
      has
      received such information regarding the Issuers as it has requested pursuant
      to
      Rule 144A or has determined not to request such information and that it is
      aware
      that the transferor is relying upon its foregoing representations in order
      to
      claim the exemption from registration provided by Rule 144A; and

     

    (b)  if
      the
      proposed transferee is an Agent Member, and the Note to be transferred consists
      of a Physical Note that after transfer is to be evidenced by an interest in
      a
      Global Note or consists of a beneficial interest in a Global Note that after
      the
      transfer is to be evidenced by an interest in a different Global Note, upon
      receipt by the Note Registrar of written instructions given in accordance with
      the procedures of the Note Registrar and of the Depositary, whereupon the Note
      Registrar shall reflect on its books and records the date and an increase in
      the
      principal amount of the transferee Global Note in an amount equal to the
      principal amount of the Physical Note or such beneficial interest in such
      transferor Global Note to be transferred, and the Trustee shall cancel the
      Physical Note so transferred or reflect on its books and records the date and
      a
      decrease in the principal amount of such transferor Global Note, as the case
      may
      be.

     

    (3)  Limitation
      on Issuance of Physical Notes.
      No
      Physical Note shall be exchanged for a beneficial interest in any Global Note,
      except in accordance with Section 312
      and this
Section
      313.

     

    
      
        
        

      

      
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    A
      beneficial owner of an interest a Temporary Regulation S Global Note (and,
      in
      the case of any Additional Notes for which no Temporary Regulation S Global
      Note
      is issued, any Regulation S Global Note) shall not be permitted to exchange
      such
      interest for a Physical Note or (in the case of such interest in a Temporary
      Regulation S Global Note) an interest in a Permanent Regulation S Global Note
      until a date, which must be after Distribution Compliance Date, on which the
      Issuers receive a certificate of beneficial ownership substantially in the
      form
      of Exhibit
      G
      from
      such beneficial owner (a “Certificate
      of Beneficial Ownership”).
      Such
      date, as it relates to a Regulation S Global Note, is herein referred to as
      the
“Regulation
      S Note Exchange Date.”

     

    (4)  Private
      Placement Legend.
      Upon
      the transfer, exchange or replacement of Notes not bearing the Private Placement
      Legend, the Note Registrar shall deliver Notes that do not bear the Private
      Placement Legend. Upon the transfer, exchange or replacement of Notes bearing
      the Private Placement Legend, the Note Registrar shall deliver only Notes that
      bear the Private Placement Legend unless (i) the requested transfer is after
      the
      relevant Resale Restriction Termination Date with respect to such Notes, (ii)
      upon written request of the Issuers after there is delivered to the Note
      Registrar an opinion of counsel (which opinion and counsel are satisfactory
      to
      the Issuers and the Trustee) to the effect that neither such legend nor the
      related restrictions on transfer are required in order to maintain compliance
      with the provisions of the Securities Act, (iii) with respect to a Regulation
      S
      Global Note (on or after the Regulation S Note Exchange Date with respect to
      such Regulation S Global Note) or Regulation S Physical Note, in each case
      with
      the agreement of the Issuers, or (iv) such Notes are sold or exchanged pursuant
      to an effective registration statement under the Securities Act.

     

    (5)  Other
      Transfers.
      The
      Note Registrar shall effect and register, upon receipt of a written request
      from
      the Issuers to do so, a transfer not otherwise permitted by this Section
      313,
      such
      registration to be done in accordance with the otherwise applicable provisions
      of this Section
      313,
      upon
      the furnishing by the proposed transferor or transferee of a written opinion
      of
      counsel (which opinion and counsel are satisfactory to the Issuers and the
      Trustee) to the effect that, and such other certifications or information as
      the
      Issuers or the Trustee may require (including, in the case of a transfer to
      an
      Accredited Investor (as defined in Rule 501(a)(1), (2), (3) or (7) under
      Regulation D promulgated under the Securities Act), a certificate substantially
      in the form of Exhibit
      J)
      to
      confirm that, the proposed transfer is being made pursuant to an exemption
      from,
      or in a transaction not subject to, the registration requirements of the
      Securities Act.

     

    A
      Note
      that is a Restricted Security may not be transferred other than as provided
      in
      this Section
      313.
      A
      beneficial interest in a Global Note that is a Restricted Security may not
      be
      exchanged for a beneficial interest in another Global Note other than through
      a
      transfer in compliance with this Section
      313.

     

    (6)  General.
      By its
      acceptance of any Note bearing the Private Placement Legend, each Holder of
      such
      a Note acknowledges the restrictions on transfer of such Note set forth in
      this
      Indenture and in the Private Placement Legend and agrees that it will transfer
      such Note only as provided in this Indenture.

     

    
      
        
        

      

      
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    The
      Note
      Registrar shall retain copies of all letters, notices and other written
      communications received pursuant to Section
      312
      or this
Section
      313
      (including all Notes received for transfer pursuant to Section
      313).
      The
      Issuers shall have the right to require the Note Registrar to deliver to the
      Issuers, at the Issuers’ expense, copies of all such letters, notices or other
      written communications at any reasonable time upon the giving of reasonable
      written notice to the Note Registrar.

     

    In
      connection with any transfer of any Note, the Trustee, the Note Registrar and
      the Issuers shall be entitled to receive, shall be under no duty to inquire
      into, may conclusively presume the correctness of, and shall be fully protected
      in relying upon the certificates, opinions and other information referred to
      herein (or in the forms provided herein, attached hereto or to the Notes, or
      otherwise) received from any Holder and any transferee of any Note regarding
      the
      validity, legality and due authorization of any such transfer, the eligibility
      of the transferee to receive such Note and any other facts and circumstances
      related to such transfer.

     

    Section
      314.  Payment
      of Additional Interest.
      (a)
      Under
      certain circumstances the Issuers will be obligated to pay certain additional
      amounts of interest to the Holders of certain Initial Notes, as more
      particularly set forth in such Initial Notes.

     

    (b)  Under
      certain circumstances the Issuers may be obligated to pay certain additional
      amounts of interest to the Holders of certain Initial Additional Notes, as
      may
      be more particularly set forth in such Initial Additional Notes.

     

    (c)  Prior
      to
      any Interest Payment Date on which any such additional interest is payable,
      the
      Issuers shall give notice to the Trustee of the amount of any additional
      interest due on such Interest Payment Date.

     

    ARTICLE
      IV

     

    COVENANTS

     

    Section
      401.  Payment
      of Principal, Premium and Interest.
      The
      Issuers shall duly and punctually pay the principal of (and premium, if any)
      and
      interest on the Notes in accordance with the terms of the Notes and this
      Indenture. Principal amount (and premium, if any) and interest on the Notes
      shall be considered paid on the date due if the Issuers shall have deposited
      with the applicable Paying Agent (if other than the Company or a wholly-owned
      Domestic Subsidiary of the Company) as of 12:00 p.m. New York City time on
      the
      due date money in immediately available funds and designated for and sufficient
      to pay all principal amount (and premium, if any) and interest then
      due.

     

    Section
      402.  Maintenance
      of Office or Agency.
      (a)
      The
      Company shall maintain in the United States one or more offices or agencies
      where Notes may be presented or surrendered for payment, where Notes may be
      surrendered for transfer or exchange and where notices and demands to or upon
      the Company in respect of the Notes and this Indenture may be served. The
      Company shall give prompt written notice to the Trustee of the location, and
      of
      any change in the location, of such office or agency. If at any time the Company
      shall fail to maintain such office or agency or shall fail to furnish the
      Trustee with the address thereof, such p

     

    
      
        
        

      

      
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    resentations,
      surrenders, notices and demands may be made or served at the Corporate Trust
      Office of the Trustee.

     

    (b)  The
      Company may also from time to time designate one or more other offices or
      agencies where the Notes may be presented or surrendered for any or all purposes
      and may from time to time rescind such designations.

     

    The
      Company hereby designates the Corporate Trust Office of the Trustee as such
      office or agency of the Company where Notes may be presented or surrendered
      for
      payment or for transfer or exchange for so long as such Corporate Trust Office
      remains a Place of Payment, in accordance with Section
      305
      hereof.

     

    Section
      403.  Money
      for Payments to Be Held in Trust

     

    .
      If the
      Company shall at any time act as its own Paying Agent, it shall, on or before
      12:00 p.m., New York City time each due date of the principal of (and premium,
      if any) or interest on, any of the Notes, segregate and hold in trust for the
      benefit of the Persons entitled thereto a sum sufficient to pay the principal
      (and premium, if any) or interest so becoming due until such sums shall be
      paid
      to such Persons or otherwise disposed of as herein provided, and shall promptly
      notify the Trustee of its action or failure so to act.

     

    If
      the
      Company is not acting as its own Paying Agent, it shall, on or prior to 12:00
      p.m., New York City time each due date of the principal of (and premium, if
      any)
      or interest on, any Notes, deposit with a Paying Agent a sum sufficient to
      pay
      the principal (and premium, if any) or interest, so becoming due, such sum
      to be
      held in trust for the benefit of the Persons entitled to such principal, premium
      or interest, and (unless such Paying Agent is the Trustee) the Company shall
      promptly notify the Trustee of its action or failure so to act.

     

    If
      the
      Company is not acting as its own Paying Agent, the Company shall cause any
      Paying Agent other than the Trustee to execute and deliver to the Trustee an
      instrument in which such Paying Agent shall agree with the Trustee, subject
      to
      the provisions of this Section 403,
      that
      such Paying Agent shall

     

    (1)  hold
      all
      sums held by it for the payment of principal of (and premium, if any) or
      interest on Notes in trust for the benefit of the Persons entitled thereto
      until
      such sums shall be paid to such Persons or otherwise disposed of as herein
      provided;

     

    (2)  give
      the
      Trustee notice of any default by the Company (or any other obligor upon the
      Notes) in the making of any such payment of principal (and premium, if any)
      or
      interest;

     

    (3)  at
      any
      time during the continuance of any such default, upon the written request of
      the
      Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying
      Agent; and

     

    (4)  acknowledge,
      accept and agree to comply in all respects with the provisions of this Indenture
      and TIA relating to the duties, rights and liabilities of such Paying
      Agent.

     

    
      
        
        

      

      
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    The
      Issuers may at any time, for the purpose of obtaining the satisfaction and
      discharge of this Indenture or for any other purpose, pay, or by Company Order
      direct any Paying Agent to pay, to the Trustee all sums held in trust by the
      Company or such Paying Agent, such sums to be held by the Trustee upon the
      same
      trusts as those upon which such sums were held by the Company or such Paying
      Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying
      Agent shall be released from all further liability with respect to such
      money.

     

    Any
      money
      deposited with the Trustee or any Paying Agent, or then held by the Company,
      in
      trust for the payment of the principal of (and premium, if any) or interest
      on
      any Note and remaining unclaimed for two years after such principal (and
      premium, if any) or interest has become due and payable shall be paid to the
      Company on Company Request, or (if then held by the Company) shall be discharged
      from such trust; and the Holder of such Note shall thereafter, as an unsecured
      general creditor, look only to the Company for payment thereof, and all
      liability of the Trustee or such Paying Agent with respect to such trust money,
      and all liability of the Company as trustee thereof, shall thereupon
      cease.

     

    Section
      404.  [Reserved].

     

    Section
      405.  Reports.
      Prior
      to consummation of the exchange offer contemplated by the Registration Rights
      Agreement or the registration of the Notes with the SEC for resale and when
      any
      Notes under the Indenture are outstanding, the Company will provide to the
      Trustee and the holders of Notes: (a) within 90 days after the end of the
      Company’s fiscal year, financial statements and management’s discussion and
      analysis of financial condition and results of operations substantially
      equivalent to that which would be required to be included in an Annual Report
      on
      Form 10-K of the Company were the Company subject to an obligation to file
      such
      a report under the Exchange Act, and (b) within 45 days after the end of each
      of
      the first three fiscal quarters in each fiscal year of the Company, financial
      statements and management’s discussion and analysis of financial condition and
      results of operations substantially equivalent to that which would be required
      to be included in a Quarterly Report on Form 10-Q of the Company were the
      Company subject to an obligation to file such a report under the Exchange Act;
      

     

    provided,
      however,
      that the
      reports set forth in clauses (a) and (b) above shall not be required
      to: 

    (x) contain
      any certification required by any such form or the Sarbanes-Oxley Act of 2002,
      

    (y) include
      separate financial statements of any Guarantor or Avis Budget Finance, Inc.
      or

    (z) include
      any exhibit; provided,
      further, however,
      that if
      such reports do not include either (1) separate financial statements for each
      Guarantor or (2) consolidating condensed financial statements of the Subsidiary
      Guarantors, in accordance with Rule 3-10(d) of Regulation S-X promulgated by
      the
      SEC, then such reports shall include a calculation of the Consolidated Coverage
      Ratio, the Consolidated Secured Leverage Ratio and the amount of Restricted
      Payments that could be made pursuant to Section 409(a), in each case at the
      end
      of the period to which the report relates.

     

    Following
      consummation of the exchange offer contemplated by the Registration Rights
      Agreement or the registration of the Notes with the SEC for resale,
      notwithstanding that 

     

    
      
        
        

      

      
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    the
      Company may not be required to be or remain subject to the reporting
      requirements of Section 13(a) or 15(d) of the Exchange Act, the Company will
      file with the SEC (unless such filing is not permitted under the Exchange Act
      or
      by the SEC), so long as the Notes are Outstanding, the annual reports,
      information, documents and other reports that the Company is required to file
      with the SEC pursuant to such Section 13(a) or 15(d) or would be so required
      to
      file if the Company were so subject. The Company will also, within 15 days
      after
      the date on which the Company was so required to file or would be so required
      to
      file if the Company were so subject, transmit by mail to all Holders, as their
      names and addresses appear in the Note Register, and to the Trustee (or make
      available on a Company website) copies of any such information, documents and
      reports (without exhibits) so required to be filed. The Company will be deemed
      to have satisfied the requirements of this Section
      405
      if any
      Parent files with the SEC and provides reports, documents and information of
      the
      types otherwise so required, in each case within the applicable time periods
      specified by the applicable rules and regulations of the SEC, and the Company
      is
      not required to file such reports, documents and information separately under
      the applicable rules and regulations of the SEC (after giving effect to any
      exemptive relief) because of the filings by such Parent. The Company will comply
      with the other provisions of TIA § 314(a).

     

    Section
      406.  Statement
      as to Default.
      The
      Issuers shall deliver to the Trustee, within 120 days after the end of each
      fiscal year of the Company ending after January 1, 2006, an Officer’s
      Certificate to the effect that to the best knowledge of the signer thereof
      none
      of the Issuers is or is not in default in the performance and observance of
      any
      of the terms, provisions and conditions of this Indenture (without regard to
      any
      period of grace or requirement of notice provided hereunder) and, if any of
      the
      Issuers shall be in default, specifying all such defaults and the nature and
      status thereof of which such signer may have knowledge. To the extent required
      by the TIA, each Guarantor shall comply with TIA § 314(a)(4). The individual
      signing any certificate given by any Person pursuant to this Section
      406
      shall be
      the principal executive, financial or accounting Officer of such Person, in
      compliance with TIA § 314(a)(4).

     

    Section
      407.  Limitation
      on Indebtedness.
      (a) The
      Company will not, and will not permit any Restricted Subsidiary to, Incur any
      Indebtedness; provided,
      however,
      that
      the Company or any Restricted Subsidiary may Incur Indebtedness if on the date
      of the Incurrence of such Indebtedness, after giving effect to the Incurrence
      thereof, the Consolidated Coverage Ratio would be greater than 2.00 to
      1.00.

     

    (b)  Notwithstanding
      the foregoing paragraph (a), the Company and its Restricted Subsidiaries may
      Incur the following Indebtedness:

     

    (i)  Indebtedness
      Incurred pursuant to any Credit Facility (including but not limited to in
      respect of letters of credit or bankers’ acceptances issued or created
      thereunder) and Indebtedness Incurred other than under any Credit Facility,
      and
      (without limiting the foregoing), in each case, any Refinancing Indebtedness
      in
      respect thereof, in a maximum principal amount at any time outstanding not
      exceeding in the aggregate the amount equal to 2,675 million;

     

    (ii)  Indebtedness
      (A) of any Restricted Subsidiary to the Company or (B) of the Company or any
      Restricted Subsidiary to any Restricted Subsidiary; provided,
      

     

    
      
        
        

      

      
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    that
      any
      subsequent issuance or transfer of any Capital Stock of such Restricted
      Subsidiary to which such Indebtedness is owed, or other event, that results
      in
      such Restricted Subsidiary ceasing to be a Restricted Subsidiary or any other
      subsequent transfer of such Indebtedness (except to the Company or a Restricted
      Subsidiary) will be deemed, in each case, an Incurrence of such Indebtedness
      by
      the issuer thereof not permitted by this clause (ii);

     

    (iii)  Indebtedness
      represented by the Notes, the Subsidiary Guarantees and the related exchange
      notes and exchange guarantees issued in an exchange transaction pursuant to
      the
      Registration Rights Agreement, any Indebtedness (other than the Indebtedness
      described in clause (ii) above) outstanding on the Issue Date and any
      Refinancing Indebtedness Incurred in respect of any Indebtedness described
      in
      this clause (iii), Section
      407b(x)
      or
      paragraph (a) above;

     

    (iv)  Purchase
      Money Obligations and Capitalized Lease Obligations, and any Refinancing
      Indebtedness with respect thereto;

     

    (v)  Indebtedness
      consisting of (x) accommodation guarantees for the benefit of trade creditors
      of
      the Company or any of its Restricted Subsidiaries, (y) Guarantees in connection
      with the construction or improvement of all or any portion of a Public Facility
      to be used by the Company or any Restricted Subsidiary or (z) Guarantees
      required or reasonably necessary (in the good faith determination of the
      Company) in connection with Vehicle Rental Concession Rights;

     

    (vi)  (A)
      Guarantees by the Company or any Restricted Subsidiary of Indebtedness or any
      other obligation or liability of the Company or any Restricted Subsidiary (other
      than any Indebtedness Incurred by the Company or such Restricted Subsidiary,
      as
      the case may be, in violation of this Section
      407),
      or (B)
      without limiting Section
      413,
      Indebtedness of the Company or any Restricted Subsidiary arising by reason
      of
      any Lien granted by or applicable to such Person securing Indebtedness of the
      Company or any Restricted Subsidiary (other than any Indebtedness Incurred
      by
      the Company or such Restricted Subsidiary, as the case may be, in violation
      of
      this Section 407);

     

    (vii)  Indebtedness
      of the Company or any Restricted Subsidiary (A) arising from the honoring of
      a
      check, draft or similar instrument of such Person drawn against insufficient
      funds, provided
      that
      such Indebtedness is extinguished within five Business Days of its Incurrence,
      or (B) consisting of guarantees, indemnities, obligations in respect of earnouts
      or other purchase price adjustments, or similar obligations, Incurred in
      connection with the acquisition or disposition of any business, assets or
      Person;

     

    (viii)  Indebtedness
      of the Company or any Restricted Subsidiary in respect of (A) deductible
      obligations, self-insurance obligations, reinsurance obligations, completion
      guarantees, surety, judgment, appeal or performance bonds, or other similar
      bonds, instruments or obligations, provided, or relating to liabilities or
      obligations incurred, in the ordinary course of business, or (B) Hedging
      Obligations, entered into for bona fide hedging purposes that are incurred
      in
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    financing
      of insurance premiums in the ordinary course of business, or (D) netting,
      overdraft protection and other arrangements arising under standard business
      terms of any bank at which the Company or any Restricted Subsidiary maintains
      an
      overdraft, cash pooling or other similar facility or arrangement;

     

    (ix)  Indebtedness
      (A) of a Special Purpose Subsidiary secured by a Lien on all or part of the
      assets disposed of in, or otherwise Incurred in connection with, a Financing
      Disposition or (B) otherwise Incurred in connection with a Special Purpose
      Financing; provided
      that (1)
      such Indebtedness is not recourse to the Company or any Restricted Subsidiary
      that is not a Special Purpose Subsidiary (other than with respect to Special
      Purpose Financing Undertakings), (2) in the event such Indebtedness shall become
      recourse to the Company or any Restricted Subsidiary that is not a Special
      Purpose Subsidiary (other than with respect to Special Purpose Financing
      Undertakings), such Indebtedness will be deemed to be, and must be classified
      by
      the Company as, Incurred at such time (or at the time initially Incurred) under
      one or more of the other provisions of this Section
      407
      for so
      long as such Indebtedness shall be so recourse; and (3) in the event that at
      any
      time thereafter such Indebtedness shall comply with the provisions of the
      preceding subclause (1), the Company may classify such Indebtedness in whole
      or
      in part as Incurred under this Section
      407(b)(ix);

     

    (x)  Indebtedness
      of any Person that is assumed by the Company or any Restricted Subsidiary in
      connection with its acquisition of assets from such Person or any Affiliate
      thereof or is issued and outstanding on or prior to the date on which such
      Person was acquired by the Company or any Restricted Subsidiary or merged or
      consolidated with or into any Restricted Subsidiary (other than Indebtedness
      Incurred to finance, or otherwise Incurred in connection with, such
      acquisition), provided
      that on
      the date of such acquisition, merger or consolidation, after giving effect
      thereto, the Company could Incur at least $1.00 of additional Indebtedness
      pursuant to paragraph (a) above; and any Refinancing Indebtedness with respect
      to any such Indebtedness;

     

    (xi)  Indebtedness
      of the Company or any Restricted Subsidiary that (A) is in the form of a demand
      note or other promissory note, (B) is in favor of, or for the benefit of, any
      Unrestricted Subsidiary, and (C) serves as credit enhancement for any
      vehicle-related financing; and

     

    (xii)  in
      addition to the items referred to in clauses (i) through (xi) above,
      Indebtedness of the Company or any Restricted Subsidiary in an aggregate
      outstanding principal amount at any time not exceeding an amount equal to 3.25%
      of Consolidated Tangible Assets.

     

    (c)  For
      purposes of determining compliance with, and the outstanding principal amount
      of
      any particular Indebtedness Incurred pursuant to and in compliance with, this
      Section
      407,
      (i) any
      other obligation of the obligor on such Indebtedness (or of any other Person
      who
      could have Incurred such Indebtedness under this Section
      407)
      arising
      under any Guarantee, Lien or letter of credit, bankers’ acceptance or other
      similar instrument or obligation supporting such Indebtedness shall be
      disregarded to the extent that such Guarantee, Lien or letter of credit,
      bankers’ acceptance or other similar instrument or obligation secures the

     

    
      
        
        

      

      
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    principal
      amount of such Indebtedness; (ii) in the event that Indebtedness meets the
      criteria of more than one of the types of Indebtedness described in paragraphs
      (a) or (b) above, the Company, in its sole discretion, shall classify such
      item
      of Indebtedness and may include the amount and type of such Indebtedness in
      one
      or more of such clauses (including in part under one such clause and in part
      under another such clause), and may reclassify such item of Indebtedness in
      any
      manner that complies with this Section
      407
      and only
      be required to include the amount and type of such Indebtedness in one of such
      clauses; (iii) if obligations in respect of letters of credit are Incurred
      pursuant to a Credit Facility and are being treated as Incurred pursuant to
      Section
      407(b)(i)
      and the
      letters of credit relate to other Indebtedness, then such other Indebtedness
      shall not be included; and (iv) the amount of Indebtedness issued at a price
      that is less than the principal amount thereof shall be equal to the amount
      of
      the liability in respect thereof determined in accordance with
      GAAP.

     

    (d)  For
      purposes of determining compliance with any Dollar-denominated restriction
      on
      the Incurrence of Indebtedness denominated in a foreign currency, the
      Dollar-equivalent principal amount of such Indebtedness Incurred pursuant
      thereto shall be calculated based on the relevant currency exchange rate in
      effect on the date that such Indebtedness was Incurred, in the case of term
      Indebtedness, or first committed, in the case of revolving credit Indebtedness,
      provided
      that (x)
      the Dollar-equivalent principal amount of any such Indebtedness outstanding
      on
      the Issue Date shall be calculated based on the relevant currency exchange
      rate
      in effect on the Issue Date, (y) if such Indebtedness is Incurred to refinance
      other Indebtedness denominated in a foreign currency (or in a different currency
      from such Indebtedness so being Incurred), and such refinancing would cause
      the
      applicable Dollar-denominated restriction to be exceeded if calculated at the
      relevant currency exchange rate in effect on the date of such refinancing,
      such
      Dollar-denominated restriction shall be deemed not to have been exceeded so
      long
      as the principal amount of such refinancing Indebtedness does not exceed (i)
      the
      outstanding or committed principal amount (whichever is higher) of such
      Indebtedness being refinanced plus (ii) the aggregate amount of fees,
      underwriting discounts, premiums and other costs and expenses incurred in
      connection with such refinancing and (z) the Dollar-equivalent principal amount
      of Indebtedness denominated in a foreign currency and Incurred pursuant to
      a
      Senior Credit Facility shall be calculated based on the relevant currency
      exchange rate in effect on, at the Company’s option, (i) the Issue Date, (ii)
      any date on which any of the respective commitments under such Senior Credit
      Facility shall be reallocated between or among facilities or subfacilities
      thereunder, or on which such rate is otherwise calculated for any purpose
      thereunder, or (iii) the date of such Incurrence. The principal amount of any
      Indebtedness Incurred to refinance other Indebtedness, if Incurred in a
      different currency from the Indebtedness being refinanced, shall be calculated
      based on the currency exchange rate applicable to the currencies in which such
      respective Indebtedness is denominated that is in effect on the date of such
      refinancing.

     

    Section
      408.  [Reserved].

     

    Section
      409.  Limitation
      on Restricted Payments.
      (a)
      The
      Company shall not, and shall not permit any Restricted Subsidiary, directly
      or
      indirectly, to (i) declare or pay any dividend or make any distribution on
      or in
      respect of its Capital Stock (including any such payment in connection with
      any
      merger or consolidation to which the Company is a party) except (x) dividends
      or
      distributions payable solely in its Capital Stock (other than Disqualified
      

     

    
      
        
        

      

      
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    Stock)
      and
      (y) dividends or distributions payable to the Company or any Restricted
      Subsidiary (and, in the case of any such Restricted Subsidiary making such
      dividend or distribution, to other holders of its Capital Stock on no more
      than
      a pro
      rata
      basis),
      (ii) purchase, redeem, retire or otherwise acquire for value any Capital Stock
      of the Company held by Persons other than the Company or a Restricted
      Subsidiary, (iii) voluntarily purchase, repurchase, redeem, defease or otherwise
      voluntarily acquire or retire for value, prior to scheduled maturity, scheduled
      repayment or scheduled sinking fund payment, any Subordinated Obligations (other
      than a purchase, repurchase, redemption, defeasance or other acquisition or
      retirement for value in anticipation of satisfying a sinking fund obligation,
      principal installment or final maturity, in each case due within one year of
      the
      date of such acquisition or retirement) or (iv) make any Investment (other
      than
      a Permitted Investment) in any Person (any such dividend, distribution,
      purchase, repurchase, redemption, defeasance, other acquisition or retirement
      or
      Investment being herein referred to as a “Restricted
      Payment”),
      if at
      the time the Company or such Restricted Subsidiary makes such Restricted Payment
      and after giving effect thereto:

     

    (1)  a
      Default
      shall have occurred and be continuing (or would result therefrom);

     

    (2)  the
      Company could not Incur at least an additional $1.00 of Indebtedness pursuant
      to
Section
      407(a);
      or

     

    (3)  the
      aggregate amount of such Restricted Payment and all other Restricted Payments
      (the amount so expended, if other than in cash, to be as determined in good
      faith by the Board of Directors, whose determination shall be conclusive and
      evidenced by a resolution of the Board of Directors) declared or made subsequent
      to the Issue Date and then outstanding would exceed, without duplication, the
      sum of :

     

    (A)  50%
      of
      the Consolidated Net Income accrued during the period (treated as one accounting
      period) beginning on the first day of the Company’s fiscal quarter in which the
      Issue Date occurred to the end of the most recent fiscal quarter ending prior
      to
      the date of such Restricted Payment for which consolidated financial statements
      of the Company are available (or, in case such Consolidated Net Income shall
      be
      a negative number, 100% of such negative number);

     

    (B)  100%
      of
      the aggregate Net Cash Proceeds and the fair value (as determined in good faith
      by the Board of Directors) of property or assets received (x) by the Company
      as
      capital contributions to the Company after the Issue Date or from the issuance
      or sale (other than to a Restricted Subsidiary) of its Capital Stock (other
      than
      Disqualified Stock) after the Issue Date or (y) by the Company or any Restricted
      Subsidiary from the issuance and sale by the Company or any Restricted
      Subsidiary of Indebtedness that shall have been converted into or exchanged
      after the Issue Date for Capital Stock of the Company or any Parent (other
      than
      Disqualified Stock), plus the amount of any cash and the fair value (as
      determined in good faith by the Board of Directors) of any property or assets,
      received by the Company or any Restricted Subsidiary upon such conversion or
      exchange;

     

    
      
        
        

      

      
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    (C)  the
      aggregate amount equal to the net reduction in Investments in Unrestricted
      Subsidiaries resulting from (i) dividends, distributions, cancellation of
      indebtedness for borrowed money owed by the Company or any Restricted Subsidiary
      to an Unrestricted Subsidiary, interest payments, return of capital, repayments
      of Investments or other transfers of assets to the Company or any Restricted
      Subsidiary from any Unrestricted Subsidiary, including dividends or other
      distributions related to dividends or other distributions made pursuant to
      Section
      409(b)(vii)
      (but
      only to the extent such amount is not included in Consolidated Net Income),
      or
      (ii) the redesignation of any Unrestricted Subsidiary as a Restricted Subsidiary
      (valued in each case as provided in the definition of “Investment”),
      not
      to exceed in the case of any such Unrestricted Subsidiary the aggregate amount
      of Investments (other than Permitted Investments) made by the Company or any
      Restricted Subsidiary in such Unrestricted Subsidiary after the Issue Date;
      and

     

    (D)  in
      the
      case of any disposition or repayment of any Investment constituting a Restricted
      Payment (without duplication of any amount deducted in calculating the amount
      of
      Investments at any time outstanding included in the amount of Restricted
      Payments), an amount in the aggregate equal to the lesser of the return of
      capital, repayment or other proceeds with respect to all such Investments
      received by the Company or a Restricted Subsidiary and the initial amount of
      all
      such Investments constituting Restricted Payments.

     

    (b)  The
      provisions of Section
      409(a)
      will not
      prohibit any of the following, so long as a Default shall not have occurred
      and
      be continuing (or would result therefrom) (each, a “Permitted
      Payment”):

     

    (i)  any
      purchase, redemption, repurchase, defeasance or other acquisition or retirement
      of Capital Stock of the Company or Subordinated Obligations made by exchange
      (including any such exchange pursuant to the exercise of a conversion right
      or
      privilege in connection with which cash is paid in lieu of the issuance of
      fractional shares) for, or out of the proceeds of the substantially concurrent
      issuance or sale of, Capital Stock of the Company (other than Disqualified
      Stock
      and other than Capital Stock issued or sold to a Restricted Subsidiary) or
      a
      substantially concurrent capital contribution to the Company; provided,
      that
      the Net Cash Proceeds from such issuance, sale or capital contribution shall
      be
      excluded in subsequent calculations under Section 409(a)(3)(B);

     

    (ii)  any
      purchase, redemption, repurchase, defeasance or other acquisition or retirement
      of Subordinated Obligations (w) made by exchange for, or out of the proceeds
      of
      the substantially concurrent issuance or sale of, Indebtedness of the Company
      or
      Refinancing Indebtedness Incurred in compliance with Section
      407,
      (x)
      from Net Available Cash to the extent permitted by Section
      411,
      (y)
      following the occurrence of a Change of Control (or other similar event
      described therein as a “change
      of control”),
      but
      only if the Company shall have complied with Section
      415
      and, if
      required, purchased all Notes tendered pursuant to the offer to repurchase
      all
      the Notes required thereby, prior 

     

    
      
        
        

      

      
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    to
      purchasing or repaying such Subordinated Obligations or (z) constituting
      Acquired Indebtedness;

     

    (iii)  dividends
      paid within 60 days after the date of declaration thereof if at such date of
      declaration such dividend would have complied with Section
      409(a);

     

    (iv)  the
      payment by the Company of, or loans, advances, dividends or distributions by
      the
      Company to any Parent to pay, dividends on or purchase or repurchase the common
      stock or equity of such Parent in an amount not to exceed in any fiscal year
      $25
      million;

     

    (v)  notwithstanding
      the existence of any default or Event of Default, loans, advances, dividends
      or
      distributions to any Parent or other payments by the Company or any Restricted
      Subsidiary to permit such Parent to make payments pursuant to (A) any Tax
      Sharing Agreement, or (B) to pay or permit any Parent to pay (1) any Parent
      Expenses or (2) any Related Taxes;

     

    (vi)  payments
      by the Company, or loans, advances, dividends or distributions by the Company
      to
      any Parent to make payments, to holders of Capital Stock of the Company or
      any
      Parent in lieu of issuance of fractional shares of such Capital Stock, not
      to
      exceed $5.0 million in the aggregate outstanding at any time;

     

    (vii)  dividends
      or other distributions of Capital Stock, Indebtedness or other securities of
      Unrestricted Subsidiaries;

     

    (viii)  the
      declaration and payment of dividends to holders of any class or series of
      Disqualified Stock, or of any Preferred Stock of a Restricted Subsidiary,
      Incurred in accordance with the terms of the covenant described under
Section
      407
      above;

     

    (ix)  distributions
      by a Special Purpose Entity organized outside the United States to its partners
      pursuant to a financing arrangement solely out of the cash flows of such Special
      Purpose Entity; 

     

    (x)   Restricted
      Payments (including loans and advances) in an aggregate amount outstanding
      at
      any time not exceeding an amount (net of repayments of such loans or advances)
      equal to 1% of Consolidated Tangible Assets; 

     

    (xi)   the
      purchase, redemption or other acquisition, cancellation or retirement for value
      of Equity Interests of the Company or any Restricted Subsidiary or any Parent
      held by any existing or former employees or management or directors of the
      Company or any Parent or any Subsidiary of the Company or their assigns, estates
      or heirs, in each case in connection with (x) the death or disability of
      such employee, manager or director or (y) the repurchase provisions under
      employee stock option or stock purchase agreements or other agreements to
      compensate management employees or directors; provided
      that in
      the case of clause (y) such redemptions or repurchases pursuant to such
      clause will not exceed $2.5 million in the aggregate during any
      twelve-

     

    
      
        
        

      

      
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    month
      period plus the aggregate Net Cash Proceeds received by the Company after the
      Issue Date from the issuance of such Capital Stock or equity appreciation rights
      to, or the exercise of options, warrants or other rights to purchase or acquire
      Capital Stock of the Company by, any current or former director, officer or
      employee of the Company or any Restricted Subsidiary; provided
      that the
      amount of such Net Cash Proceeds received by the Company and utilized pursuant
      to this Section
      409(b)(xi) for
      any such repurchase, redemption, acquisition or retirement will be excluded
      from
Section
      409(a)(3)(B);
      and
provided,
      further,
      that
      unused amounts available pursuant to this Section
      409(b)(xi) to
      be utilized for Restricted Payments during any twelve-month period may be
      carried forward and utilized in the next succeeding twelve-month period; and
      

     

    (xii)   repurchases
      of Capital Stock deemed to occur upon the exercise of stock options, warrants
      or
      other convertible securities if such Capital Stock represents (i) a portion
      of the exercise price thereof or (ii) withholding incurred in connection
      with such exercise. 

     

    provided,
      that
      (A) in the case of clauses (iii), (iv), (v)(B)(1) (but only such Parent Expenses
      referred to in clause (ii) and clause (iv) of the definition of “Parent
      Expenses”),
      (vi),
      (viii) and (x), the net amount of any such Permitted Payment shall be included
      in subsequent calculations of the amount of Restricted Payments (but only to
      the
      extent such amount was not included as an expense in the calculation of
      Consolidated Net Income), and (B) in all cases other than pursuant to clause
      (A)
      immediately above, the net amount of any such Permitted Payment shall be
      excluded in subsequent calculations of the amount of Restricted
      Payments.

     

    Section
      410.  Limitation
      on Restrictions on Distributions from Restricted Subsidiaries.
      The
      Company will not, and will not permit any Restricted Subsidiary to, create
      or
      otherwise cause to exist or become effective any consensual encumbrance or
      restriction on the ability of any Restricted Subsidiary to (i) pay dividends
      or
      make any other distributions on its Capital Stock or pay any Indebtedness or
      other obligations owed to the Company, (ii) make any loans or advances to the
      Company or (iii) transfer any of its property or assets to the Company
      (provided
      that
      dividend or liquidation priority between classes of Capital Stock, or
      subordination of any obligation (including the application of any remedy bars
      thereto) to any other obligation, will not be deemed to constitute such an
      encumbrance or restriction), except any encumbrance or restriction:

     

    (1)  pursuant
      to any agreement in effect at or entered into on the Issue Date, including,
      without limitation, this Indenture, the Notes, the Senior Credit Facility or
      any
      other Credit Facility;

     

    (2)  pursuant
      to any agreement or instrument of a Person, or relating to Indebtedness or
      Capital Stock of a Person, which Person is acquired by or merged or consolidated
      with or into the Company or any Restricted Subsidiary, or which agreement or
      instrument is assumed by the Company or any Restricted Subsidiary in connection
      with an acquisition of assets from such Person, as in effect at the time of
      such
      acquisition, merger or consolidation (except to the extent that such
      Indebtedness was incurred to finance, or otherwise in connection with, such
      acquisition, merger or consolidation); provided
      that for
      purposes of this clause (2), if a Person other than the Company is the

     

    
      
        
        

      

      
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    Successor
      Company with respect thereto, any Subsidiary thereof or agreement or instrument
      of such Person or any such Subsidiary shall be deemed acquired or assumed,
      as
      the case may be, by the Company or a Restricted Subsidiary, as the case may
      be,
      when such Person becomes such Successor Company;

     

    (3)  pursuant
      to an agreement or instrument (a “Refinancing
      Agreement”)
      effecting a refinancing of Indebtedness Incurred pursuant to, or that otherwise
      extends, renews, refunds, refinances or replaces, an agreement or instrument
      referred to in clause (1) or (2) of this Section
      410
      or this
      clause (3) (an “Initial
      Agreement”)
      or
      contained in any amendment, supplement or other modification to an Initial
      Agreement (an “Amendment”);
      provided,
      however,
      that
      the encumbrances and restrictions contained in any such Refinancing Agreement
      or
      Amendment taken as a whole are not materially less favorable to the Holders
      of
      the Notes than encumbrances and restrictions contained in the Initial Agreement
      or Initial Agreements to which such Refinancing Agreement or Amendment relates
      (as determined in good faith by the Company);

     

    (4)  (A)
      that
      restricts in a customary manner the subletting, assignment or transfer of any
      property or asset that is subject to a lease, license or similar contract,
      or
      the assignment or transfer of any lease, license or other contract, (B) by
      virtue of any transfer of, agreement to transfer, option or right with respect
      to, or Lien on, any property or assets of the Company or any Restricted
      Subsidiary not otherwise prohibited by this Indenture, (C) contained in
      mortgages, pledges or other security agreements securing Indebtedness of a
      Restricted Subsidiary to the extent restricting the transfer of the property
      or
      assets subject thereto, (D) pursuant to customary provisions restricting
      dispositions of real property interests set forth in any reciprocal easement
      agreements of the Company or any Restricted Subsidiary, (E) pursuant to Purchase
      Money Obligations that impose encumbrances or restrictions on the property
      or
      assets so acquired, (F) on cash or other deposits or net worth imposed by
      customers or suppliers under agreements entered into in the ordinary course
      of
      business, (G) pursuant to customary provisions contained in agreements and
      instruments entered into in the ordinary course of business (including but
      not
      limited to leases and joint venture and other similar agreements entered into
      in
      the ordinary course of business), (H) that arises or is agreed to in the
      ordinary course of business and does not detract from the value of property
      or
      assets of the Company or any Restricted Subsidiary in any manner material to
      the
      Company or such Restricted Subsidiary, (I) pursuant to Hedging Obligations
      or
      (J) in connection with or relating to any Vehicle Rental Concession
      Right;

     

    (5)  with
      respect to a Restricted Subsidiary (or any of its property or assets) imposed
      pursuant to an agreement entered into for the direct or indirect sale or
      disposition of all or substantially all the Capital Stock or assets of such
      Restricted Subsidiary (or the property or assets that are subject to such
      restriction) pending the closing of such sale or disposition;

     

    (6)  by
      reason
      of any applicable law, rule, regulation or order, or required by any regulatory
      authority having jurisdiction over the Company or any Restricted Subsidiary
      or
      any of their businesses; or

     

    
      
        
        

      

      
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    (7)  pursuant
      to an agreement or instrument (A) relating to any Indebtedness permitted to
      be
      Incurred subsequent to the Issue Date pursuant to the provisions of Section
      407
      (i) if
      the encumbrances and restrictions contained in any such agreement or instrument
      taken as a whole are not materially less favorable to the Holders of the Notes
      than the encumbrances and restrictions contained in the Initial Agreements
      (as
      determined in good faith by the Company), or (ii) if such encumbrance or
      restriction is not materially more disadvantageous to the Holders of the Notes
      than is customary in comparable financings (as determined in good faith by
      the
      Company) and either (x) the Company determines in good faith that such
      encumbrance or restriction will not materially affect the Company’s ability to
      make principal or interest payments on the Notes or (y) such encumbrance or
      restriction applies only if a default occurs in respect of a payment or
      financial covenant relating to such Indebtedness, (B) relating to any sale
      of
      receivables by a Foreign Subsidiary, (C) of or relating to Indebtedness of
      or a
      Financing Disposition by or to or in favor of any Special Purpose Entity or
      (D)
      of a financing arrangement of a Special Purpose Entity organized outside the
      United States.

     

    Section
      411.  Limitation
      on Sales of Assets and Subsidiary Stock.
      (a)
      The
      Company will not, and will not permit any Restricted Subsidiary to, make any
      Asset Disposition unless

     

    (i)  the
      Company or such Restricted Subsidiary receives consideration (including by
      way
      of relief from, or by any other Person assuming responsibility for, any
      liabilities, contingent or otherwise) at the time of such Asset Disposition
      at
      least equal to the fair market value of the shares and assets subject to such
      Asset Disposition, as such fair market value may be determined (and shall be
      determined, to the extent such Asset Disposition or any series of related Asset
      Dispositions involves aggregate consideration in excess of $25.0 million) in
      good faith by the Board of Directors, whose determination shall be conclusive
      (including as to the value of all non-cash consideration);

     

    (ii)  in
      the
      case of any Asset Disposition (or series of related Asset Dispositions) having
      a
      fair market value of $25.0 million or more other than in a sale of the Budget
      Truck Division for fair market value, at least 75% of the consideration therefor
      (excluding, in the case of an Asset Disposition (or series of related Asset
      Dispositions), any consideration by way of relief from, or by any other Person
      assuming responsibility for, any liabilities, contingent or otherwise, that
      are
      not Indebtedness) received by the Company or such Restricted Subsidiary is
      in
      the form of cash; and

     

    (iii)  an
      amount
      equal to 100% of the Net Available Cash from such Asset Disposition is applied
      by the Company (or any Restricted Subsidiary, as the case may be) as
      follows:

     

    (A)  first,
      either
      (x) to the extent the Company elects (or is required by the terms of any Bank
      Indebtedness, any senior indebtedness of the Company or any Subsidiary Guarantor
      or any Indebtedness of a Restricted Subsidiary that is not a Subsidiary
      Guarantor), to prepay, repay or purchase any such Indebtedness or (in the case
      of letters of credit, bankers’ acceptances or other similar instruments) cash
      collateralize any such Indebtedness (in each case other than 

     

    
      
        
        

      

      
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    Indebtedness
      owed to the Company or a Restricted Subsidiary) within 365 days after the later
      of the date of such Asset Disposition and the date of receipt of such Net
      Available Cash, or (y) to the extent the Company or such Restricted Subsidiary
      elects, to invest in Additional Assets (including by means of an investment
      in
      Additional Assets by a Restricted Subsidiary with an amount equal to Net
      Available Cash received by the Company or another Restricted Subsidiary) within
      365 days from the later of the date of such Asset Disposition and the date
      of
      receipt of such Net Available Cash, or, if such investment in Additional Assets
      is a project authorized by the Board of Directors that will take longer than
      such 365 days to complete, the period of time necessary to complete such
      project;

     

    (B)  second,
      if the
      balance of such Net Available Cash after application in accordance with clause
      (A) above exceeds $25.0 million (such balance, the “Excess
      Proceeds”),
      to
      the extent of such Excess Proceeds, to make an offer to purchase Notes and
      (to
      the extent the Company or such Restricted Subsidiary elects, or is required
      by
      the terms thereof) to purchase, redeem or repay any other unsubordinated
      indebtedness of the Company or a Restricted Subsidiary, pursuant and subject
      to
Section
      41l(b)
      and
Section
      41l(c)
      and the
      agreements governing such other Indebtedness; and

     

    (C)  third,
      to the
      extent of the balance of such Net Available Cash after application in accordance
      with clauses (A) and (B) above, to fund (to the extent consistent with any
      other
      applicable provision of this Indenture) any general corporate purpose (including
      but not limited to the repurchase, repayment or other acquisition or retirement
      of any Subordinated Obligations);

     

    provided,
      however,
      that in
      connection with any prepayment, repayment or purchase of Indebtedness pursuant
      to clause (A)(x) or (B) above, the Company or such Restricted Subsidiary will
      retire such Indebtedness and will cause the related loan commitment (if any)
      to
      be permanently reduced in an amount equal to the principal amount so prepaid,
      repaid or purchased.

     

    Notwithstanding
      the foregoing provisions of this Section
      411,
      the
      Company and the Restricted Subsidiaries shall not be required to apply any
      Net
      Available Cash or equivalent amount in accordance with this Section
      411
      except
      to the extent that the aggregate Net Available Cash from all Asset Dispositions
      or equivalent amount that is not applied in accordance with this Section 411
      exceeds
      $50.0 million. If the aggregate principal amount of Notes or other Indebtedness
      of the Company or a Restricted Subsidiary validly tendered and not withdrawn
      (or
      otherwise subject to purchase, redemption or repayment) in connection with
      an
      offer pursuant to clause (B) above exceeds the Excess Proceeds, the Excess
      Proceeds will be apportioned between such Notes and such other Indebtedness
      of
      the Company or a Restricted Subsidiary, with the portion of the Excess Proceeds
      payable in respect of such Notes to equal the lesser of (x) the Excess Proceeds
      amount multiplied by a fraction, the numerator of which is the outstanding
      principal amount of such Notes and the denominator of which is the sum of the
      outstanding principal amount of the Notes and the outstanding principal amount
      of the relevant other Indebtedness of the Company or a Restricted Subsidiary,
      and (y) the aggregate principal amount of Notes validly tendered and not
      withdrawn.

     

    
      
        
        

      

      
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    For
      the
      purposes of clause (ii) of paragraph (a) above, the following are deemed to
      be
      cash: (1) Temporary Cash Investments and Cash Equivalents, (2) the assumption
      of
      Indebtedness of the Company (other than Disqualified Stock of the Company)
      or
      any Restricted Subsidiary and the release of the Company or such Restricted
      Subsidiary from all liability on payment of the principal amount of such
      Indebtedness in connection with such Asset Disposition, (3) Indebtedness of
      any Restricted Subsidiary that is no longer a Restricted Subsidiary as a result
      of such Asset Disposition, to the extent that the Company and each other
      Restricted Subsidiary are released from any Guarantee of payment of the
      principal amount of such Indebtedness in connection with such Asset Disposition,
      (4) securities received by the Company or any Restricted Subsidiary from the
      transferee that are converted by the Company or such Restricted Subsidiary
      into
      cash within 180 days, and (5) consideration consisting of Indebtedness of the
      Company or any Restricted Subsidiary.

     

    (b)  In
      the
      event of an Asset Disposition that requires the purchase of Notes pursuant
      to
Section
      41l(a)(iii)(B),
      the
      Company will be required to purchase Notes tendered pursuant to an offer by
      the
      Company for the Notes (the “Offer”)
      at a
      purchase price of 100% of their principal amount plus accrued and unpaid
      interest to the Purchase Date in accordance with the procedures (including
      prorating in the event of oversubscription) set forth in Section
      41l(c).
      If the
      aggregate purchase price of the Notes tendered pursuant to the offer is less
      than the Net Available Cash allotted to the purchase of Notes, the remaining
      Net
      Available Cash will be available to the Company for use in accordance with
      Section
      41l(a)(iii)(B)
      (to
      repay other Indebtedness of the Company or a Restricted Subsidiary) or
Section
      41l(a)(iii)(C).
      The
      Company shall not be required to make an offer for Notes pursuant to this
Section
      411
      if the
      Net Available Cash available therefor (after application of the proceeds as
      provided in Section 41l(a)(iii)(A))
      is less
      than $50.0 million for any particular Asset Disposition (which lesser amounts
      shall be carried forward for purposes of determining whether an offer is
      required with respect to the Net Available Cash from any subsequent Asset
      Disposition). No Note will be repurchased in part if less than $2,000 in
      original principal amount of such Note would be left outstanding.

     

    (c)  The
      Company shall, not later than 45 days after the Company becomes obligated to
      make an offer pursuant to this Section
      411,
      mail a
      notice to each Holder with a copy to the Trustee stating: (1) that an Asset
      Disposition that requires the purchase of a portion of the Notes has occurred
      and that such Holder has the right (subject to the prorating described below)
      to
      require the Company to purchase a portion of such Holder’s Notes at a purchase
      price in cash equal to 100% of the principal amount thereof, plus accrued and
      unpaid interest, if any, to the date of purchase (subject to Section
      307);
      (2)
      the circumstances and relevant facts and financial information regarding such
      Asset Disposition; (3) the repurchase date (which shall be no earlier than
      30
      days nor later than 60 days from the date such notice is mailed; (4) the
      instructions determined by the Company, consistent with this Section
      411,
      that a
      Holder must follow in order to have its Notes purchased; and (5) the amount
      of
      the offer. If, upon the expiration of the period for which the offer remains
      open, the aggregate principal amount of Notes surrendered by the Holder exceeds
      the amount of the offer, the Company shall select the Notes to be purchased
      on a
pro
      rata
      basis
      (with such adjustments as may be deemed appropriate by the Company so that
      only
      Notes in denominations of $2,000 or integral multiples of $1,000 in excess
      thereof shall be purchased).

     

    
      
        
        

      

      
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    (d)  To
      the
      extent that the provisions of any securities laws or regulations conflict with
      provisions of this Section
      411,
      the
      Company may comply with the applicable securities laws and regulations and
      will
      not be deemed to have breached its obligations under this Section
      411
      by
      virtue thereof.

     

    Section
      412.  Limitation
      on Transactions with Affiliates.
      (a)
      The
      Company will not, and will not permit any Restricted Subsidiary to, directly
      or
      indirectly, enter into or conduct any transaction or series of related
      transactions (including the purchase, sale, lease or exchange of any property
      or
      the rendering of any service) with any Affiliate of the Company (an
“Affiliate
      Transaction”)
      unless
      (i) such Affiliate Transaction is entered into in good faith and the terms
      of
      such Affiliate Transaction are, taken as a whole, fair and reasonable to the
      Company or such Restricted Subsidiary, and (ii) if such Affiliate Transaction
      involves aggregate consideration in excess of $25.0 million, the terms of such
      Affiliate Transaction have been approved by a majority of the Disinterested
      Directors. For purposes of this Section
      412(a),
      any
      Affiliate Transaction shall be deemed to have satisfied the requirements set
      forth in this Section
      412(a)
      if (x)
      such Affiliate Transaction is approved by a majority of the Disinterested
      Directors or (y) in the event there are no Disinterested Directors, the Company
      or such Restricted Subsidiary receives an opinion in customary form from a
      nationally recognized appraisal or investment banking firm to the effect that
      such Affiliate Transaction is fair to the Company or such Restricted Subsidiary
      from a financial point of view.

     

    (b)  The
      provisions of Section
      412(a)
      will not
      apply to:

     

    (i)  any
      Restricted Payment Transaction;

     

    (ii)  (1)
      the
      entering into, maintaining or performance of any employment contract, collective
      bargaining agreement, benefit plan, program or arrangement, related trust
      agreement or any other similar arrangement for or with any employee, officer
      or
      director heretofore or hereafter entered into in the ordinary course of
      business, including vacation, health, insurance, deferred compensation,
      severance, retirement, savings or other similar plans, programs or arrangements,
      (2) the payment of compensation, performance of indemnification or contribution
      obligations, or any issuance, grant or award of stock, options, other
      equity-related interests or other securities, to employees, officers or
      directors in the ordinary course of business, (3) the payment of reasonable
      fees
      to directors of the Company or any of its Subsidiaries (as determined in good
      faith by the Company or such Subsidiary), or (4) Management Advances and
      payments in respect thereof (or in reimbursement of any expenses referred to
      in
      the definition of such term);

     

    (iii)  any
      transaction with, including an investment in, the Company, any Restricted
      Subsidiary, or any Special Purpose Entity;

     

    (iv)  any
      transaction arising out of agreements or instruments in existence on the Issue
      Date and listed on Exhibit K hereto (other than any Tax Sharing Agreement
      referred to in Section
      412(b)(vi)),
      and any
      payments made pursuant thereto;

     

    
      
        
        

      

      
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    (v)  any
      transaction in the ordinary course of business, or approved by a majority of
      the
      Board of Directors, between the Company or any Restricted Subsidiary and any
      Affiliate of the Company controlled by the Company that is a joint venture
      or
      similar entity;

     

    (vi)  the
      execution, delivery and performance of any Tax Sharing Agreement;

     

    (vii)  any
      issuance or sale of Capital Stock (other than Disqualified Stock) of the Company
      or capital contribution to the Company;

     

    (viii)  transactions
      with Affiliates solely in their capacity as holders of Indebtedness or Capital
      Stock of the Company or any of its Subsidiaries, where such Affiliates hold
      less
      Indebtedness or Capital Stock than non-Affiliates and such Affiliates receive
      the same consideration as non-Affiliates in such transactions; 

     

    (ix)   any
      transaction with any Person who is not an Affiliate immediately before the
      consummation of such transaction that becomes an Affiliate as a result of such
      transaction; and  

     

    (x)  transactions
      exclusively between or among the Company and any of its Restricted Subsidiaries,
      provided such transactions are not otherwise prohibited by this Indenture.
      

     

    Section
      413.  Limitation
      on Liens.
      The
      Company shall not, and shall not permit any Restricted Subsidiary to, directly
      or indirectly, create or permit to exist any Lien (other than Permitted Liens)
      on any of its property or assets (including Capital Stock of any other Person),
      whether owned on the date of this Indenture or thereafter acquired, securing
      any
      Indebtedness (the “Initial
      Lien”),
      unless contemporaneously therewith effective provision is made to secure the
      Indebtedness due under this Indenture and the Notes or, in respect of Liens
      on
      any Restricted Subsidiary’s property or assets, any Subsidiary Guarantee of such
      Restricted Subsidiary, equally and ratably with (or on a senior basis to, in
      the
      case of Subordinated Obligations or Guarantor Subordinated Obligations) such
      obligation for so long as such obligation is so secured by such Initial Lien.
      Any such Lien thereby created in favor of the Notes or any such Subsidiary
      Guarantee will be automatically and unconditionally released and discharged
      upon
      (i) the release and discharge of the Initial Lien to which it relates, (ii)
      in
      the case of any such Lien in favor of any such Subsidiary Guarantee, upon the
      termination and discharge of such Subsidiary Guarantee in accordance with the
      terms of Section
      1303
      or (iii)
      any sale, exchange or transfer (other than a transfer constituting a transfer
      of
      all or substantially all of the assets of the Company that is governed by
Section
      501)
      to any
      Person not an Affiliate of the Company of the property or assets secured by
      such
      Initial Lien, or of all of the Capital Stock held by the Company or any
      Restricted Subsidiary in, or all or substantially all the assets of, any
      Restricted Subsidiary creating such Initial Lien.

     

    Section
      414.  Future
      Subsidiary Guarantors.
      From
      and after the Issue Date, the Company will cause each Domestic Subsidiary that
      guarantees payment by the Company of any Indebtedness of the Company under
      the
      Senior Credit Facility to execute and deliver to the 

     

    
      
        
        

      

      
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    Trustee
      a
      supplemental indenture or other instrument pursuant to which such Domestic
      Subsidiary will guarantee payment of the Notes, whereupon such Domestic
      Subsidiary will become a Subsidiary Guarantor for all purposes under this
      Indenture. In addition, the Company may cause any Subsidiary or other Person
      that is not a Subsidiary Guarantor to guarantee payment of the Notes and become
      a Subsidiary Guarantor. Subsidiary Guarantees will be subject to release and
      discharge under certain circumstances prior to payment in full of the
      Notes.

     

    Section
      415.  Purchase
      of Notes Upon a Change in Control.
      (a)
      Upon the
      occurrence after the Issue Date of a Change of Control, each Holder of Notes
      will have the right to require the Company to repurchase all or any part of
      such
      Notes at a purchase price in cash equal to 101% of the principal amount thereof,
      plus accrued and unpaid interest, if any, to, but not including, the date of
      repurchase (subject to Section
      307);
      provided,
      however,
      that
      the Company shall not be obligated to repurchase Notes pursuant to this
Section
      415
      in the
      event that it has exercised its right to redeem all of the Notes as provided
      in
Article
      X.

     

    (b)  In
      the
      event that, at the time of such Change of Control, the terms of any Bank
      Indebtedness restrict or prohibit the repurchase of the Notes pursuant to this
      Section
      415,
      then
      prior to the mailing of the notice to Holders provided for in Section
      415(c)
      but in
      any event not later than 30 days following the date the Company obtains actual
      knowledge of any Change of Control (unless the Company has exercised its right
      to redeem all the Notes as provided in Article
      X),
      the
      Company shall, or shall cause one or more of its Subsidiaries to, (i) repay
      in
      full all such Bank Indebtedness subject to such terms or offer to repay in
      full
      all such Bank Indebtedness and repay the Bank Indebtedness of each lender who
      has accepted such offer or (ii) obtain the requisite consent under the
      agreements governing such Bank Indebtedness to permit the repurchase of the
      Notes as provided for in Section
      415(c).
      The
      Company shall first comply with the provisions of the immediately preceding
      sentence before it shall be required to repurchase Notes pursuant to the
      provisions set forth in this Section
      415.
      The
      Company’s failure to comply with the provisions of this Section
      415(b)
      or
Section
      415(c)
      shall
      constitute an Event of Default described in Section
      601(iv)
      and not
      in Section
      601(ii).

     

    (c)  Unless
      the Company has exercised its right to redeem all the Notes as described under
      Article
      X,
      the
      Company shall, not later than 30 days following the date the Company obtains
      actual knowledge of any Change of Control having occurred, mail a notice (a
      “Change
      of Control Offer”)
      to
      each Holder with a copy to the Trustee stating: (1) that a Change of Control
      has
      occurred or may occur and that such Holder has, or upon such occurrence will
      have, the right to require the Company to purchase such Holder’s Notes at a
      purchase price in cash equal to 101% of the principal amount thereof, plus
      accrued and unpaid interest, if any, to, but not including, the date of purchase
      (subject to the right of Holders of record on a record date to receive interest
      on the relevant interest payment date); (2) the repurchase date (which shall
      be
      no earlier than 30 days nor later than 60 days from the date such notice is
      mailed); (3) the instructions determined by the Company, consistent with this
      Section
      415,
      that a
      Holder must follow in order to have its Notes purchased; and (4) if such notice
      is mailed prior to the occurrence of a Change of Control, that such offer is
      conditioned on the occurrence of such Change of Control. No Note will be
      repurchased in part if less than $2,000 in original principal amount of such
      Note would be left outstanding.

     

    
      
        
        

      

      
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    (d)  The
      Company will not be required to make a Change of Control Offer upon a Change
      of
      Control if (i) a third party makes the Change of Control Offer in the manner,
      at
      the times and otherwise in compliance with the requirements set forth in the
      Indenture applicable to a Change of Control Offer made by the Company and
      purchases all Notes validly tendered and not withdrawn under such Change of
      Control Offer, or (ii) notice of redemption has been given pursuant to the
      Indenture as provided in Article X, unless and until there is a default of
      the
      applicable redemption price.

     

    (e)  To
      the
      extent that the provisions of any securities laws or regulations conflict with
      provisions of this Section
      415,
      the
      Company may comply with the applicable securities laws and regulations and
      will
      not be deemed to have breached its obligations under this Section
      415
      by
      virtue thereof.

     

    ARTICLE
      V

     

    SUCCESSORS

     

    Section
      501.  When
      the Company May Merge, Etc.
      (a)
      The
      Company will not consolidate with or merge with or into, or convey, transfer
      or
      lease all or substantially all its assets to, any Person, unless:

     

    (i)  the
      resulting, surviving or transferee Person (the “Successor
      Company”)
      will
      be a Person organized and existing under the laws of the United States of
      America, any State thereof or the District of Columbia and the Successor Company
      (if not the Company) will expressly assume all the obligations of the Company
      under the Notes and this Indenture by executing and delivering to the Trustee
      a
      supplemental indenture or one or more other documents or instruments in form
      reasonably satisfactory to the Trustee;

     

    (ii)  immediately
      after giving effect to such transaction (and treating any Indebtedness that
      becomes an obligation of the Successor Company or any Restricted Subsidiary
      as a
      result of such transaction as having been Incurred by the Successor Company
      or
      such Restricted Subsidiary at the time of such transaction), no Default will
      have occurred and be continuing;

     

    (iii)  immediately
      after giving effect to such transaction, either (A) the Successor Company could
      Incur at least $1.00 of additional Indebtedness pursuant to Section
      407(a),
      or (B)
      the Consolidated Coverage Ratio of the Company (or, if applicable, the Successor
      Company with respect thereto) would equal or exceed the Consolidated Coverage
      Ratio of the Company immediately prior to giving effect to such
      transaction;

     

    (iv)  each
      Subsidiary Guarantor (other than (x) any Subsidiary Guarantor that will be
      released from its obligations under its Subsidiary Guarantee in connection
      with
      such transaction and (y) any party to any such consolidation or merger) shall
      have delivered a supplemental indenture or other document or instrument in
      form
      reasonably satisfactory to the Trustee, confirming its Subsidiary Guarantee
      (other than 

     

    
      
        
        

      

      
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    any
      Subsidiary Guarantee that will be discharged or terminated in connection with
      such transaction); and

     

    (v)  the
      Company will have delivered to the Trustee an Officer’s Certificate and an
      Opinion of Counsel, each to the effect that such consolidation, merger or
      transfer complies with the provisions described in this paragraph, provided
      that (x)
      in giving such opinion such counsel may rely on an Officer’s Certificate as to
      compliance with the foregoing clauses (ii) and (iii) to the extent such opinion
      would otherwise be required to address financial matters or tests, and as to
      any
      matters of fact may rely on an Officer’s Certificate, and (y) no Opinion of
      Counsel will be required for a consolidation, merger or transfer described
      in
Section 50l(b).

     

    Any
      Indebtedness that becomes an obligation of the Company or any Restricted
      Subsidiary (or that is deemed to be Incurred by any Person that becomes a
      Restricted Subsidiary) as a result of any such transaction undertaken in
      compliance with this Section
      501,
      and any
      Refinancing Indebtedness with respect thereto, shall be deemed to have been
      Incurred in compliance with Section
      407.

     

    (b)  Clauses
      (ii) and (iii) of Section
      50l(a)
      will not
      apply to any transaction in which (1) any Restricted Subsidiary consolidates
      with, merges with or into or conveys or transfers all or part of its assets
      to
      the Company or (2) the Company consolidates with or merges with or into or
      conveys or transfers all or substantially all its properties and assets to
      (x)
      an Affiliate incorporated or organized for the purpose of reincorporating or
      reorganizing the Company in another jurisdiction or changing its legal structure
      to a corporation or other entity or (y) a Restricted Subsidiary of the Company
      so long as all assets of the Company and the Restricted Subsidiaries immediately
      prior to such transaction (other than Capital Stock of such Restricted
      Subsidiary) are owned by such Restricted Subsidiary and its Restricted
      Subsidiaries immediately after the consummation thereof. 

     

    Section
      502.  Successor
      Company Substituted.
      Upon
      any transaction involving the Company in accordance with Section
      501
      in which
      the Company is not the Successor Company, the Successor Company shall succeed
      to, and be substituted for, and may exercise every right and power of, the
      Company under this Indenture, and thereafter the predecessor Company shall
      be
      relieved of all obligations and covenants under this Indenture, except that
      the
      predecessor Company in the case of a lease of all or substantially all its
      assets shall not be released from the obligation to pay the principal of and
      interest on the Notes.

     

    ARTICLE
      VI

     

    REMEDIES

     

    Section
      601.  Events
      of Default.
      An
“Event
      of Default”
means
      the occurrence of the following:

     

    (i)  a
      default
      in any payment of interest on any Note when due, continued for a period of
      30
      days;

     

    
      
        
        

      

      
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    (ii)  a
      default
      in the payment of principal of any Note when due, whether at its Stated
      Maturity, upon optional redemption, upon required repurchase, upon declaration
      of acceleration or otherwise;

     

    (iii)  the
      failure by the Company to comply with its obligations under Section
      50l(a);

     

    (iv)  the
      failure by the Company to comply for 30 days after the notice specified in
      the
      penultimate paragraph of this Section
      601
      with any
      of its obligations under Section
      415
      (other
      than a failure to purchase the Notes);

     

    (v)  the
      failure by the Company to comply for 60 days after the notice specified in
      the
      penultimate paragraph of this Section
      601
      with its
      other agreements contained in the Notes or this Indenture;

     

    (vi)  the
      failure by any Subsidiary Guarantor to comply for 45 days after the notice
      specified in the penultimate paragraph of this Section
      601
      with its
      obligations under its Subsidiary Guarantee;

     

    (vii)  the
      failure by the Company or any Restricted Subsidiary to pay any Indebtedness
      within any applicable grace period after final maturity or the acceleration
      of
      any such Indebtedness by the holders thereof because of a default, if the total
      amount of such Indebtedness so unpaid or accelerated exceeds $50.0 million
      or
      its foreign currency equivalent; provided,
      that no
      Default or Event of Default will be deemed to occur with respect to any such
      accelerated Indebtedness that is paid or otherwise acquired or retired within
      30
      days after such acceleration;

     

    (viii)  the
      taking of any of the following actions by the Company or a Significant
      Subsidiary, or by each of such other Restricted Subsidiaries that are not
      Significant Subsidiaries but would in the aggregate constitute a Significant
      Subsidiary if considered as a single Person, pursuant to or within the meaning
      of any Bankruptcy Law:

     

    (A)  the
      commencement of a voluntary case;

     

    (B)  the
      consent to the entry of an order for relief against it in an involuntary
      case;

     

    (C)  the
      consent to the appointment of a Custodian of it or for any substantial part
      of
      its property; or

     

    (D)  the
      making of a general assignment for the benefit of its creditors;

     

    (ix)  a
      court
      of competent jurisdiction enters an order or decree under any Bankruptcy Law
      that:

     

    (A)  is
      for
      relief against the Company or any Significant Subsidiary, or against each of
      such other Restricted 

     

    
      
        
        

      

      
        82

        
          

        

      

      
        
        

      

    

    Subsidiaries
      that are not Significant Subsidiaries but would in the aggregate constitute
      a
      Significant Subsidiary if considered as a single Person, in an involuntary
      case;

     

    (B)  appoints
      (x) a Custodian of the Company or any Significant Subsidiary or for any
      substantial part of its property, or (y) a Custodian of each of such other
      Restricted Subsidiaries that are not Significant Subsidiaries but would in
      the
      aggregate constitute a Significant Subsidiary if considered as a single Person,
      or for any substantial part of their property in the aggregate; or

     

    (C)  orders
      the winding up or liquidation of the Company or any Significant Subsidiary,
      or
      of each of such other Restricted Subsidiaries that are not Significant
      Subsidiaries but would in the aggregate constitute a Significant Subsidiary
      if
      considered as a single Person;

     

    and
      the
      order or decree remains unstayed and in effect for 60 days;

     

    (x)  the
      rendering of any judgment or decree for the payment of money in an amount (net
      of any insurance or indemnity payments actually received in respect thereof
      prior to or within 90 days from the entry thereof, or to be received in respect
      thereof in the event any appeal thereof shall be unsuccessful) in excess of
      $50.0 million or its foreign currency equivalent against the Company or a
      Significant Subsidiary, or jointly and severally against other Restricted
      Subsidiaries that are not Significant Subsidiaries but would in the aggregate
      constitute a Significant Subsidiary if considered as a single Person, that
      is
      not discharged, or bonded or insured by a third Person, if such judgment or
      decree remains outstanding for a period of 90 days following such judgment
      or
      decree and is not discharged, waived or stayed; or

     

    (xi)  the
      failure of any Subsidiary Guarantee by a Subsidiary Guarantor that is a
      Significant Subsidiary to be in full force and effect (except as contemplated
      by
      the terms thereof or of this Indenture) or the denial or disaffirmation in
      writing by any Subsidiary Guarantor that is a Significant Subsidiary of its
      obligations under this Indenture or its Subsidiary Guarantee (other than by
      reason of the termination of this Indenture or such Subsidiary Guarantee or
      the
      release of such Subsidiary Guarantee in accordance with such Subsidiary
      Guarantee and this Indenture), if such Default continues for 10
      days.

     

    The
      foregoing will constitute Events of Default whatever the reason for any such
      Event of Default and whether it is voluntary or involuntary or is effected
      by
      operation of law or pursuant to any judgment, decree or order of any court
      or
      any order, rule or regulation of any administrative or governmental
      body.

     

    The
      term
“Bankruptcy
      Law”
means
      Title 11, United States Code, or any similar federal, state or foreign law
      for
      the relief of debtors. The term “Custodian”
means
      any receiver, trustee, assignee, liquidator, custodian or similar official
      under
      any Bankruptcy Law.

     

    However,
      a Default under clause (iv), (v) or (vi) will not constitute an Event of Default
      until the Trustee or the Holders of at least 30% in principal amount of the
      Outstanding 

     

    
      
        
        

      

      
        83

        
          

        

      

      
        
        

      

    

    Notes
      notify the Company of the Default and the Company does not cure such Default
      within the time specified in such clause after receipt of such notice. Such
      notice must specify the Default, demand that it be remedied and state that
      such
      notice is a “Notice
      of Default.”
When
      a
      Default or an Event of Default is cured, it ceases.

     

    The
      Company shall deliver to the Trustee, within 30 days after the occurrence
      thereof, written notice in the form of an Officer’s Certificate of any Event of
      Default under clause (vii) or (x) and any event that with the giving of notice
      or the lapse of time would become an Event of Default under clause (iv), (v)
      or
      (vi), its status and what action the Company is taking or proposes to take
      with
      respect thereto.

     

    Section
      602.  Acceleration
      of Maturity; Rescission and Annulment.
      If an
      Event of Default (other than an Event of Default specified in Section
      601(viii)
      or
Section
      60l(ix))
      occurs
      and is continuing, the Trustee by notice to the Company, or the Holders of
      at
      least 30% in principal amount of the Outstanding Notes by notice to the Company
      and the Trustee, in either case specifying in such notice the respective Event
      of Default and that such notice is a “notice of acceleration,” may declare the
      principal of and accrued but unpaid interest on all the Notes to be due and
      payable. Upon the effectiveness of such a declaration, such principal and
      interest will be due and payable immediately.

     

    Notwithstanding
      the foregoing, if an Event of Default specified in Section 60l(viii)
      or
      Section
      60l(ix)
      occurs
      and is continuing, the principal of and accrued but unpaid interest on all
      the
      Outstanding Notes will ipso facto become immediately due and payable without
      any
      declaration or other act on the part of the Trustee or any Holder. The Holders
      of a majority in principal amount of the Outstanding Notes by notice to the
      Company and the Trustee may rescind an acceleration and its consequences if
      the
      rescission would not conflict with any judgment or decree and if all existing
      Events of Default have been cured or waived except non-payment of principal
      or
      interest that has become due solely because of such acceleration. No such
      rescission shall affect any subsequent Default or impair any right consequent
      thereto.

     

    Section
      603.  Other
      Remedies; Collection Suit by Trustee.
      If an
      Event of Default occurs and is continuing, the Trustee may, but is not obligated
      under Section
      603
      to,
      pursue any available remedy to collect the payment of principal of or interest
      on the Notes or to enforce the performance of any provision of the Notes or
      this
      Indenture. If an Event of Default specified in Section
      60l(i)
      or
60l(ii)
      occurs
      and is continuing, the Trustee may recover judgment in its own name and as
      trustee of an express trust against the Company for the whole amount then due
      and owing (together with interest on any unpaid interest to the extent lawful)
      and the amounts provided for in Section
      707.

     

    Section
      604.  Trustee
      May File Proofs of Claim.
      The
      Trustee may file such proofs of claim and other papers or documents as may
      be
      necessary or advisable in order to have the claims of the Trustee and the
      Holders allowed in any judicial proceedings relative to the Company or any
      other
      obligor upon the Notes, its creditors or its property and, unless prohibited
      by
      law or applicable regulations, may vote on behalf of the Holders in any election
      of a trustee in bankruptcy or other Person performing similar functions, and
      any
      Custodian in any such judicial proceeding is hereby authorized by each Holder
      to
      make payments to the Trustee and, in the event that the Trustee shall consent
      to
      the making of such payments directly to the Holders, to 

     

    
      
        
        

      

      
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    pay
      to
      the Trustee any amount due it for the reasonable compensation, expenses,
      disbursements and advances of the Trustee, its agents and its counsel, and
      any
      other amounts due the Trustee under Section
      707.

     

    No
      provision of this Indenture shall be deemed to authorize the Trustee to
      authorize or consent to or accept or adopt on behalf of any Holder any plan
      of
      reorganization, arrangement, adjustment or composition affecting the Notes
      or
      the rights of any Holder thereof or to authorize the Trustee to vote in respect
      of the claim of any Holder in any such proceeding.

     

    Section
      605.  Trustee
      May Enforce Claims Without Possession of Notes.
      All
      rights of action and claims under this Indenture or the Notes may be prosecuted
      and enforced by the Trustee without the possession of any of the Notes or the
      production thereof in any proceeding relating thereto, and any such proceeding
      instituted by the Trustee shall be brought in its own name as trustee of an
      express trust, and any recovery of judgment shall, after provision for the
      payment of the reasonable compensation, expenses, disbursements and advances
      of
      the Trustee, its agents and counsel, be for the ratable benefit of the Holders
      of the Notes in respect of which such judgment has been recovered.

     

    Section
      606.  Application
      of Money Collected.
      Any
      money collected by the Trustee pursuant to this Article
      VI
      shall be
      applied in the following order, at the date or dates fixed by the Trustee and,
      in case of the distribution of such money on account of principal (or premium,
      if any) or interest, upon presentation of the Notes and the notation thereon
      of
      the payment if only partially paid and upon surrender thereof if fully
      paid:

     

    First:
      To the
      payment of all amounts due the Trustee under Section
      707;

     

    Second:
      To the
      payment of the amounts then due and unpaid upon the Notes for principal (and
      premium, if any) and interest, in respect of which or for the benefit of which
      such money has been collected, ratably, without preference or priority of any
      kind, according to the amounts due and payable on such Notes for principal
      (and
      premium, if any) and interest, respectively; and

     

    Third:
      To the
      Company.

     

    Section
      607.  Limitation
      on Suits.
      Subject
      to Section
      608
      hereof,
      no Holder may pursue any remedy with respect to this Indenture or the Notes
      unless:

     

    (i)  such
      Holder has previously given the Trustee written notice that an Event of Default
      is continuing;

     

    (ii)  Holders
      of at least 30% in principal amount of the Outstanding Notes have requested
      the
      Trustee in writing to pursue the remedy;

     

    (iii)  such
      Holder or Holders have offered to the Trustee reasonable security or indemnity
      against any loss, liability or expense;

     

    (iv)  the
      Trustee has not complied with the request within 60 days after receipt of the
      request and the offer of security or indemnity; and

     

    
      
        
        

      

      
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    (v)  the
      Holders of a majority in principal amount of the Outstanding Notes have not
      given the Trustee a direction inconsistent with the request within such 60-day
      period.

     

    A
      Holder
      may not use this Indenture to affect, disturb or prejudice the rights of another
      Holder, to obtain a preference or priority over another Holder or to enforce
      any
      right under this Indenture except in the manner herein provided and for the
      equal and ratable benefit of all Holders.

     

    Section
      608.  Unconditional
      Right of Holders to Receive Principal and Interest.
      Notwithstanding any other provision in this Indenture, the Holder of any Note
      shall have the absolute and unconditional right to receive payment of the
      principal of and all (subject to Section 307)
      interest on such Note on the respective Stated Maturity or Interest Payment
      Dates expressed in such Note and to institute suit for the enforcement of any
      such payment on or after such respective Stated Maturity or Interest Payment
      Dates, and such right shall not be impaired without the consent of such
      Holder.

     

    Section
      609.  Restoration
      of Rights and Remedies.
      If the
      Trustee or any Holder has instituted any proceeding to enforce any right or
      remedy under this Indenture or any Note and such proceeding has been
      discontinued or abandoned for any reason, or has been determined adversely
      to
      the Trustee or to such Holder, then and in every such case the Company, any
      other obligor upon the Notes, the Trustee and the Holders shall, subject to
      any
      determination in such proceeding, be restored severally and respectively to
      their former positions hereunder, and thereafter all rights and remedies of
      the
      Trustee and the Holders shall continue as though no such proceeding had been
      instituted.

     

    Section
      610.  Rights
      and Remedies Cumulative.
      No
      right or remedy herein conferred upon or reserved to the Trustee or to the
      Holders is intended to be exclusive of any other right or remedy, and every
      right and remedy shall, to the extent permitted by law, be cumulative and in
      addition to every other right and remedy given hereunder or now or hereafter
      existing at law or in equity or otherwise. The assertion or employment of any
      right or remedy hereunder, or otherwise, shall not prevent the concurrent
      assertion or employment of any other appropriate right or remedy.

     

    Section
      611.  Delay
      or Omission Not Waiver.
      No
      delay or omission of the Trustee or of any Holder of any Note to exercise any
      right or remedy accruing upon any Event of Default shall impair any such right
      or remedy or constitute a waiver of any such Event of Default or an acquiescence
      therein. Every right and remedy given by this Article
      VI
      or by
      law to the Trustee or to the Holders may be exercised from time to time, and
      as
      often as may be deemed expedient, by the Trustee or by the Holders, as the
      case
      may be.

     

    Section
      612.  Control
      by Holders.
      The
      Holders of not less than a majority in aggregate principal amount of the
      Outstanding Notes shall have the right to direct the time, method and place
      of
      conducting any proceeding for any remedy available to the Trustee or of
      exercising any trust or power conferred on the Trustee, provided
      that

     

    
      
        
        

      

      
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    (1)  such
      direction shall not be in conflict with any rule of law or with this Indenture,
      and

     

    (2)  the
      Trustee may take any other action deemed proper by the Trustee which is not
      inconsistent with such direction.

     

    However,
      the Trustee may refuse to follow any direction that conflicts with law or this
      Indenture or, subject to Section
      701,
      that
      the Trustee determines is unduly prejudicial to the rights of any other Holder
      or that would involve the Trustee in personal liability; provided,
      however,
      that
      the Trustee may take any other action deemed proper by the Trustee that is
      not
      inconsistent with such direction. Prior to taking any action under this
      Indenture, the Trustee shall be entitled to indemnification satisfactory to
      it
      in its sole discretion against all losses and expenses caused by taking or
      not
      taking such action. This Section
      612
      shall be
      in lieu of § 316(a)(1)(A) of the TIA, and such § 316(a)(1)(A) of the TIA is
      hereby expressly excluded from this Indenture and the Notes, as permitted by
      the
      TIA.

     

    Section
      613.  Waiver
      of Past Defaults.
      The
      Holders of not less than a majority in aggregate principal amount of the
      Outstanding Notes may on behalf of the Holders of all the Notes waive any past
      Default hereunder and its consequences (provided,
      that if
      any such waiver will only affect the Floating Rate Notes or the 7.625% Notes
      or
      the 7.75% Notes then Outstanding under this Indenture, then only the Holders
      of
      not less than a majority in aggregate principal amount of the Floating Rate
      Notes or the 7.625% Notes or the 7.75% Notes then Outstanding, as the case
      may
      be, may on behalf of the Holders of all the Floating Rate Notes or all the
      7.625% Notes or all the 7.75% Notes, as applicable, waive such past Default
      and
      its consequences), except a Default

     

    (1)  in
      the
      payment of the principal of or interest on any Note (which may only be waived
      with the consent of each Holder of Notes affected), or

     

    (2)  in
      respect of a covenant or provision hereof that pursuant to the second paragraph
      of Section
      902
      cannot
      be modified or amended without the consent of the Holder of each Outstanding
      Note affected.

     

    Upon
      any
      such waiver, such Default shall cease to exist, and any Event of Default arising
      therefrom shall be deemed to have been cured, for every purpose of this
      Indenture; but no such waiver shall extend to any subsequent or other Default
      or
      Event of Default or impair any right consequent thereon. In case of any such
      waiver, the Company, any other obligor upon the Notes, the Trustee and the
      Holders shall be restored to their former positions and rights hereunder and
      under the Notes, respectively. This paragraph of this Section
      613
      shall be
      in lieu of § 316(a)(1)(B) of the TIA, and such § 316(a)(1)(B) of the TIA is
      hereby expressly excluded from this Indenture and the Notes, as permitted by
      the
      TIA.

     

    Section
      614.  Undertaking
      for Costs.
      All
      parties to this Indenture agree, and each Holder of any Note by such Holder’s
      acceptance thereof shall be deemed to have agreed, that any court may in its
      discretion require, in any suit for the enforcement of any right or remedy
      under
      this Indenture or the Notes, or in any suit against the Trustee for any action
      taken, suffered or omitted by it as Trustee, the filing by any party litigant
      in
      such suit of an undertaking 

     

    
      
        
        

      

      
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    to
      pay
      the costs of such suit, and that such court may in its discretion assess
      reasonable costs, including reasonable attorneys’ fees, against any party
      litigant in such suit, having due regard to the merits and good faith of the
      claims or defenses made by such party litigant. This Section
      614
      shall
      not apply to any suit instituted by the Trustee, to any suit instituted by
      any
      Holder, or group of Holders, holding in the aggregate more than 10% in principal
      amount of the Outstanding Notes, or to any suit instituted by any Holder for
      the
      enforcement of the payment of the principal of (or premium, if any) or interest
      on any Note on or after the respective Stated Maturity or Interest Payment
      Dates
      expressed in such Note.

     

    Section
      615.  Waiver
      of Stay, Extension or Usury Laws.
      The
      Company (to the extent that it may lawfully do so) shall not at any time insist
      upon, or plead, or in any manner whatsoever claim or take the benefit or
      advantage of, any stay or extension law or any usury or other similar law
      wherever enacted, now or at any time hereafter in force, that would prohibit
      or
      forgive the Company from paying all or any portion of the principal of (or
      premium, if any) or interest on the Notes contemplated herein or in the Notes
      or
      that may affect the covenants or the performance of this Indenture; and the
      Company (to the extent that it may lawfully do so) hereby expressly waives
      all
      benefit or advantage of any such law, and shall not hinder, delay or impede
      the
      execution of any power herein granted to the Trustee, but will suffer and permit
      the execution of every such power as though no such law had been
      enacted.

     

    ARTICLE
      VII

     

    THE
      TRUSTEE

     

    Section
      701.  Certain
      Duties and Responsibilities.
      (a)
      Except
      during the continuance of an Event of Default,

     

    (1)  the
      Trustee undertakes to perform such duties and only such duties as are
      specifically set forth in this Indenture, and no implied covenants or
      obligations shall be read into this Indenture against the Trustee;
      and

     

    (2)  in
      the
      absence of bad faith on its part, the Trustee may conclusively rely, as to
      the
      truth of the statements and the correctness of the opinions expressed therein,
      upon certificates or opinions furnished to the Trustee and conforming to the
      requirements of this Indenture; but in the case of any such certificates or
      opinions that by any provision hereof are specifically required to be furnished
      to the Trustee, the Trustee shall be under a duty to examine the same to
      determine whether or not they conform to the requirements of this Indenture,
      but
      need not verify the contents thereof.

     

    (b)  In
      case
      an Event of Default has occurred and is continuing, the Trustee shall exercise
      such of the rights and powers vested in it by this Indenture, and use the same
      degree of care and skill in their exercise, as a prudent person would exercise
      or use under the circumstances in the conduct of such person’s own
      affairs.

     

    (c)  No
      provision of this Indenture shall be construed to relieve the Trustee from
      liability for its own negligent action, its own negligent failure to act, or
      its
      own willful misconduct, except that (i) this paragraph does not limit the effect
      of Section
      70l(a);
      (ii)
      the 

     

    
      
        
        

      

      
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    Trustee
      shall not be liable for any error of judgment made in good faith by a Trust
      Officer, unless it is proved that the Trustee was negligent in ascertaining
      the
      pertinent facts; and (iii) the Trustee shall not be liable with respect to
      any
      action it takes or omits to take in good faith in accordance with a direction
      received by it pursuant to Section
      612.

     

    (d)  No
      provision of this Indenture shall require the Trustee to expend or risk its
      own
      funds or otherwise incur financial liability in the performance of any of its
      duties hereunder or in the exercise of any of its rights or powers, if it shall
      have reasonable grounds to believe that repayment of such funds or adequate
      indemnity against such risk or liability is not reasonably assured to
      it.

     

    (e)  Whether
      or not therein expressly so provided, every provision of this Indenture relating
      to the conduct or affecting the liability of or affording protection to the
      Trustee shall be subject to the provisions of this Section
      701
      and
Section
      703.

     

    Section
      702.  Notice
      of Defaults.
      If a
      Default occurs and is continuing and is known to the Trustee, the Trustee must
      mail within 90 days after it occurs, to all Holders as their names and addresses
      appear in the Note Register, notice of such Default hereunder known to the
      Trustee unless such Default shall have been cured or waived; provided,
      however,
      that,
      except in the case of a Default in the payment of the principal of, premium,
      if
      any, or interest on any Note, the Trustee shall be protected in withholding
      such
      notice if and so long as the board of directors, the executive committee or
      a
      trust committee of Responsible Officers of the Trustee in good faith determines
      that the withholding of such notice is in the interests of the
      Holders.

     

    Section
      703.  Certain
      Rights of Trustee.
      Subject
      to the provisions of Section 701:

     

    (1)  the
      Trustee may rely and shall be protected in acting or refraining from acting
      upon
      any resolution, certificate, statement, instrument, opinion, report, notice,
      request, direction, consent, order, bond, note, other evidence of indebtedness
      or other paper or document believed by it to be genuine and to have been signed
      or presented by the proper party or parties;

     

    (2)  any
      request or direction of the Company mentioned herein shall be sufficiently
      evidenced by a Company Request or Company Order thereof, and any resolution
      of
      any Person’s Board of Directors shall be sufficiently evidenced if certified by
      an Officer of such Person as having been duly adopted and being in full force
      and effect on the date of such certificate;

     

    (3)  whenever
      in the administration of this Indenture the Trustee shall deem it desirable
      that
      a matter be proved or established prior to taking, suffering or omitting any
      action hereunder, the Trustee (unless other evidence be herein specifically
      prescribed) may, in the absence of bad faith on its part, rely upon an Officer’s
      Certificate of the Company;

     

    (4)  the
      Trustee may consult with counsel and the written advice of such counselor and
      any Opinion of Counsel shall be full and complete authorization and

     

    
      
        
        

      

      
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    protection
      in respect of any action taken, suffered or omitted by it hereunder in good
      faith and in reliance thereon;

     

    (5)  the
      Trustee shall be under no obligation to exercise any of the rights or powers
      vested in it by this Indenture at the request or direction of any of the Holders
      pursuant to this Indenture, unless such Holders shall have offered to the
      Trustee reasonable security or indemnity against the costs, expenses and
      liabilities which might be incurred by it in compliance with such request or
      direction;

     

    (6)  the
      Trustee shall not be bound to make any investigation into the facts or matters
      stated in any resolution, certificate, statement, instrument, opinion, report,
      notice, request, direction, consent, order, bond, note, other evidence of
      indebtedness or other paper or document; and

     

    (7)  the
      Trustee may execute any of the trusts or powers hereunder or perform any duties
      hereunder either directly or by or through agents or attorneys and the Trustee
      shall not be responsible for any misconduct or negligence on the part of any
      agent or attorney appointed with due care by it hereunder.

     

    Section
      704.  Not
      Responsible for Recitals or Issuance of Notes.
      The
      recitals contained herein and in the Notes, except the Trustee’s certificates of
      authentication, shall be taken as the statements of the Company, and neither
      the
      Trustee nor any Authenticating Agent assumes any responsibility for their
      correctness. The Trustee makes no representations as to the validity or
      sufficiency of this Indenture or of the Notes, except that the Trustee
      represents that it is duly authorized to execute and deliver this Indenture,
      authenticate the Notes and perform its obligations hereunder and that the
      statements made by it in a Statement of Eligibility and Qualification on Form
      T-l supplied to the Company and any other obligor upon the Notes in connection
      with the registration of any Notes and any Subsidiary Guarantees issued
      hereunder are and will be true and accurate subject to the qualifications set
      forth therein. Neither the Trustee nor any Authenticating Agent shall be
      accountable for the use or application by the Company of the Notes or the
      proceeds thereof.

     

    Section
      705.  May
      Hold Notes.
      The
      Trustee, any Authenticating Agent, any Paying Agent, any Note Registrar or
      any
      other agent of the Company, in its individual or any other capacity, may become
      the owner or pledgee of Notes and, subject to Section
      708
      and
Section
      713,
      may
      otherwise deal with the Company or its Affiliates with the same rights it would
      have if it were not Trustee, Authenticating Agent, Paying Agent, Note Registrar
      or such other agent.

     

    Section
      706.  Money
      Held in Trust.
      Money
      held by the Trustee in trust hereunder need not be segregated from other funds
      except to the extent required by law. The Trustee shall be under no liability
      for interest on any money received by it hereunder except as otherwise agreed
      in
      writing with the Company.

     

    
      
        
        

      

      
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    Section
      707.  Compensation
      and Reimbursement.
      The
      Company agrees,

     

    (1)  to
      pay to
      the Trustee from time to time reasonable compensation for all services rendered
      by the Trustee hereunder (which compensation shall not be limited by any
      provision of law in regard to the compensation of a trustee of an express
      trust);

     

    (2)  except
      as
      otherwise expressly provided herein, to reimburse the Trustee upon its request
      for all reasonable out-of-pocket expenses incurred by the Trustee in accordance
      with any provision of this Indenture (including the reasonable compensation
      and
      the expenses and disbursements of its agents and counsel), except any such
      expense, disbursement or advance as may be attributable to its negligence or
      bad
      faith; and

     

    (3)  to
      indemnify the Trustee for, and to hold it harmless against, any loss, liability
      or expense incurred without negligence or bad faith on the Trustee’s part,
      arising out of or in connection with the administration of the trust or trusts
      hereunder, including the costs and expenses of defending itself against any
      claim or liability in connection with the exercise or performance of any of
      its
      powers or duties hereunder.

     

    The
      Company need not pay for any settlement made without its consent.
      The
      provisions of this Section
      707
      shall
      survive the termination of this Indenture.

     

    Section
      708.  Conflicting
      Interests.
      If the
      Trustee has or shall acquire a conflicting interest within the meaning of the
      TIA, the Trustee shall eliminate such interest, apply to the SEC for permission
      to continue as Trustee with such conflict or resign, to the extent and in the
      manner provided by, and subject to the provisions of, the TIA and this
      Indenture. To the extent permitted by the TIA, the Trustee shall not be deemed
      to have a conflicting interest by virtue of being a trustee under this Indenture
      with respect to Original Notes and Additional Notes, or a trustee under any
      other indenture between the Company and the Trustee.

     

    Section
      709.  Corporate
      Trustee Required; Eligibility.
      There
      shall at all times be one (and only one) Trustee hereunder. The Trustee shall
      be
      a Person that is eligible pursuant to the TIA to act as such and has a combined
      capital and surplus (together with its corporate parent) of at least
      $50,000,000. If any such Person publishes reports of condition at least
      annually, pursuant to law or to the requirements of its supervising or examining
      authority, then for the purposes of this Section and to the extent permitted
      by
      the TIA, the combined capital and surplus of such Person shall be deemed to
      be
      its combined capital and surplus as set forth in its most recent report of
      condition so published. If at any time the Trustee shall cease to be eligible
      in
      accordance with the provisions of this Section
      709,
      it
      shall resign immediately in the manner and with the effect hereinafter specified
      in this Article.

     

    Section
      710.  Resignation
      and Removal; Appointment of Successor.
      No
      resignation or removal of the Trustee and no appointment of a successor Trustee
      pursuant to this Article shall become effective until the acceptance of
      appointment by the successor Trustee in accordance with the applicable
      requirements of Section
      711.

     

    The
      Trustee may resign at any time by giving written notice thereof to the Company.
      If the instrument of acceptance by a successor Trustee required by Section
      711
      shall

     

    
      
        
        

      

      
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    not
      have
      been delivered to the Trustee within 30 days after the giving of such notice
      of
      resignation, the resigning Trustee may petition any court of competent
      jurisdiction for the appointment of a successor Trustee.

     

    The
      Trustee may be removed at any time by Act of the Holders of a majority in
      principal amount of the Outstanding Notes, delivered to the Trustee and to
      the
      Company.

     

    If
      at any
      time:

     

    (1)  the
      Trustee shall fail to comply with Section
      708
      after
      written request therefor by the Company or by any Holder who has been a bona
      fide Holder of a Note for at least six months, or

     

    (2)  the
      Trustee shall cease to be eligible under Section
      709
      and
      shall fail to resign after written request therefor by the Company or by any
      such Holder, or

     

    (3)  the
      Trustee shall become incapable of acting or shall be adjudged bankrupt or
      insolvent or a receiver of the Trustee or of its property shall be appointed
      or
      any public officer shall take charge or control of the Trustee or of its
      property or affairs for the purpose of rehabilitation, conservation or
      liquidation,

     

    then,
      in
      any such case, (A) the Company may remove the Trustee, or (B) subject to
Section
      614,
      any
      Holder who has been a bona fide Holder of a Note for at least six months may,
      on
      behalf of itself and all others similarly situated, petition any court of
      competent jurisdiction for the removal of the Trustee and the appointment of
      a
      successor Trustee or Trustees.

     

    If
      the
      Trustee shall resign, be removed or become incapable of acting, or if a vacancy
      shall occur in the office of Trustee for any cause, the Company shall promptly
      appoint a successor Trustee and shall comply with the applicable requirements
      of
Section
      711.
      If,
      within one year after such resignation, removal or incapability, or the
      occurrence of such vacancy, a successor Trustee shall be appointed by Act of
      the
      Holders of a majority in principal amount of the Outstanding Notes delivered
      to
      the Company and the retiring Trustee, the successor Trustee so appointed shall,
      forthwith upon its acceptance of such appointment in accordance with the
      applicable requirements of Section
      711,
      become
      the successor Trustee and to that extent supersede the successor Trustee
      appointed by the Company. If no successor Trustee shall have been so appointed
      by the Company or the Holders and accepted appointment in the manner required
      by
Section
      711,
      then,
      subject to Section
      614,
      any
      Holder who has been a bona fide Holder of a Note for at least six months may,
      on
      behalf of itself and all others similarly situated, petition any court of
      competent jurisdiction for the appointment of a successor Trustee.

     

    The
      Company shall give notice of each resignation and each removal of the Trustee
      and each appointment of a successor Trustee to all Holders in the manner
      provided in Section
      110.
      Each
      notice shall include the name of the successor Trustee and the address of its
      Corporate Trust Office.

     

    Section
      711.  Acceptance
      of Appointment by Successor.
      In case
      of the appointment hereunder of a successor Trustee, every such successor
      Trustee so appointed shall 

     

    
      
        
        

      

      
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    execute,
      acknowledge and deliver to the Company and to the retiring Trustee an instrument
      accepting such appointment, and thereupon the resignation or removal of the
      retiring Trustee shall become effective and such successor Trustee, without
      any
      further act, deed or conveyance, shall become vested with all the rights,
      powers, trusts and duties of the retiring Trustee; but, on the request of the
      Company or the successor Trustee, such retiring Trustee shall, upon payment
      of
      its charges, execute and deliver an instrument transferring to such successor
      Trustee all the rights, powers and trusts of the retiring Trustee and shall
      duly
      assign, transfer and deliver to such successor Trustee all property and money
      held by such retiring Trustee hereunder.

     

    Upon
      request of any such successor Trustee, the Company shall execute any and all
      instruments for more fully and certainly vesting in and confirming to such
      successor Trustee all such rights, powers and trusts referred to
      above.

     

    No
      successor Trustee shall accept its appointment unless at the time of such
      acceptance such successor Trustee shall be qualified and eligible under this
      Article
      VII.

     

    Section
      712.  Merger,
      Conversion, Consolidation or Succession to Business.
      Any
      corporation into which the Trustee may be merged or converted or with which
      it
      may be consolidated, or any corporation resulting from any merger, conversion
      or
      consolidation to which the Trustee shall be a party, or any corporation
      succeeding to all or substantially all the corporate trust business of the
      Trustee, shall be the successor of the Trustee hereunder, provided such
      corporation shall be otherwise qualified and eligible under this Article
      VII,
      without
      the execution or filing of any paper or any further act on the part of any
      of
      the parties hereto. In case any Notes shall have been authenticated, but not
      delivered, by the Trustee then in office, any successor by merger, conversion
      or
      consolidation to such authenticating Trustee may adopt such authentication
      and
      deliver the Notes so authenticated with the same effect as if such successor
      Trustee had itself authenticated such Notes.

     

    Section
      713.  Preferential
      Collection of Claims Against the Company.
      If and
      when the Trustee shall be or become a creditor of the Company (or any other
      obligor upon the Notes), the Trustee shall be subject to the provisions of
      the
      TIA regarding the collection of claims against the Company (or any such other
      obligor) or realizing on certain property received by it in respect of such
      claims.

     

    Section
      714.  Appointment
      of Authenticating Agent.
      The
      Trustee may appoint an Authenticating Agent acceptable to the Company to
      authenticate the Notes. Any such appointment shall be evidenced by an instrument
      in writing signed by a Trust Officer, a copy of which instrument shall be
      promptly furnished to the Company. Unless limited by the terms of such
      appointment, an Authenticating Agent may authenticate Notes whenever the Trustee
      may do so. Each reference in this Indenture to authentication (or execution
      of a
      certificate of authentication) by the Trustee includes authentication (or
      execution of a certificate of authentication) by such Authenticating Agent.
      An
      Authenticating Agent has the same rights as any Registrar, Paying Agent or
      agent
      for service of notices and demands.

     

    
      
        
        

      

      
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    ARTICLE
      VIII  

     

    HOLDERS’
      LISTS AND REPORTS BY 

    TRUSTEE
      AND THE COMPANY

     

    Section
      801.  The
      Company to Furnish Trustee Names and Addresses of Holders.
      The
      Company will furnish or cause to be furnished to the Trustee

     

    (1)  semi-annually,
      not more than 10 days after each Regular Record Date, a list, in such form
      as
      the Trustee may reasonably require, of the names and addresses of the Holders
      as
      of such Regular Record Date, and

     

    (2)  at
      such
      other times as the Trustee may request in writing, within 30 days after the
      receipt by the Company of any such request, a list of similar form and content
      as of a date not more than 15 days prior to the time such list is
      furnished;

     

    provided,
      however,
      that if
      and to the extent and so long as the Trustee shall be the Note Registrar, no
      such list need be furnished pursuant to this Section
      801.

     

    Section
      802.  Preservation
      of Information; Communications to Holders.
      The
      Trustee shall preserve, in as current a form as is reasonably practicable,
      the
      names and addresses of Holders contained in the most recent list, if any,
      furnished to the Trustee as provided in Section
      801
      and the
      names and addresses of Holders received by the Trustee in its capacity as Note
      Registrar; provided,
      however,
      that if
      and so long as the Trustee shall be the Note Registrar, the Note Register shall
      satisfy the requirements relating to such list. None of the Company, any
      Guarantor or the Trustee or any other Person shall be under any responsibility
      with regard to the accuracy of such list. The Trustee may destroy any list
      furnished to it as provided in Section
      801
      upon
      receipt of a new list so furnished.

     

    The
      rights of Holders to communicate with other Holders with respect to their rights
      under this Indenture or under the Notes, and the corresponding rights and
      privileges of the Trustee, shall be as provided by the TIA.

     

    Every
      Holder of Notes, by receiving and holding the same, agrees with the Company
      and
      the Trustee that neither the Company nor the Trustee, nor any agent of either
      of
      them, shall be held accountable by reason of any disclosure of information
      as to
      names and addresses of Holders made pursuant to the TIA.

     

    Section
      803.  Reports
      by Trustee.
      Within
      60 days after each December 15, beginning with December 15, 2006, the Trustee
      shall transmit to Holders such reports concerning the Trustee and its actions
      under this Indenture as may be required pursuant to the TIA at the times and
      in
      the manner provided pursuant thereto for so long as any Notes remain
      outstanding. A copy of each such report shall, at the time of such transmission
      to Holders, be filed by the Trustee or any applicable listing agent with each
      stock exchange upon which any Notes are listed, with the SEC and with the
      Company. The Company will notify the Trustee when any Notes are listed on any
      stock exchange.

     

    
      
        
        

      

      
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    ARTICLE
      IX  

     

    AMENDMENT,
      SUPPLEMENT OR WAIVER

     

    Section
      901.  Without
      Consent of Holders.
      Without
      the consent of the Holders of any Notes, the Company, the Trustee and (as
      applicable) each Subsidiary Guarantor may amend or supplement this Indenture
      or
      the Notes, for any of the following purposes:

     

    (1)  to
      cure
      any ambiguity, manifest error, omission, defect or inconsistency;

     

    (2)  to
      provide for the assumption by a Successor Company of the obligations of the
      Company or a Subsidiary Guarantor under this Indenture;

     

    (3)  to
      provide for uncertificated Notes in addition to or in place of certificated
      Notes;

     

    (4)  to
      add
      Guarantees with respect to the Notes, to secure the Notes, to confirm and
      evidence the release, termination or discharge of any Guarantee or Lien with
      respect to or securing the Notes when such release, termination or discharge
      is
      provided for under this Indenture;

     

    (5)  to
      add to
      the covenants of the Company for the benefit of the Holders or to surrender
      any
      right or power conferred upon the Company;

     

    (6)  to
      provide for or confirm the issuance of Additional Notes;

     

    (7)  to
      conform the text of this Indenture, the Notes or any Subsidiary Guarantee to
      any
      provision of the “Description of Notes” section of the offering memorandum to
      the extent that such provision in such “Description of Notes” section was
      intended to be a verbatim recitation of a provision of this Indenture, Guarantee
      or the Notes;

     

    (8)  to
      increase the minimum denomination of the Notes to equal the dollar equivalent
      of
€l,000 rounded up to the nearest $1,000 (including for purposes of redemption
      or
      repurchase of any Note in part);

     

    (9)  to
      provide additional rights or benefits to the Holders or make any change that
      does not materially adversely affect the rights of any Holder under the Notes
      or
      this Indenture; 

     

    (10)  to
      release a Subsidiary Guarantor from its obligations under its Subsidiary
      Guarantee or this Indenture in accordance with the applicable provisions of
      this
      Indenture;

     

    (11)  to
      provide for the appointment of a successor Trustee, provided
      that the
      successor Trustee is otherwise qualified and eligible to act as such under
      the
      terms of this Indenture; or

     

    
      
        
        

      

      
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    (12)  to
      comply
      with any requirement of the SEC in connection with the qualification of this
      Indenture under the TIA or otherwise.

     

    Section
      902.  With
      Consent of Holders.
      Subject
      to Section
      608,
      the
      Company, the Trustee and (if applicable) each Subsidiary Guarantor may amend
      or
      supplement this Indenture or the Notes with the written consent of the Holders
      of a majority in aggregate principal amount of the Outstanding Notes (including
      consents obtained in connection with a tender offer or exchange offer for
      Notes), provided,
      that if
      any such amendment or waiver will only affect the Floating Rate Notes or the
      7.625% Notes or the 7.75% Notes then Outstanding under this Indenture, then
      only
      the consent of the Holders of a majority in principal amount of the Floating
      Rate Notes or the 7.625% Notes or the 7.75% Notes then Outstanding (including,
      in each case, consents obtained in connection with a tender offer or exchange
      offer for Notes), as the case may be, shall be required and the Holders of
      not
      less than a majority in aggregate principal amount of the Outstanding Notes
      by
      written notice to the Trustee (including consents obtained in connection with
      a
      tender offer or exchange offer for Notes) may waive any existing Default or
      Event of Default or compliance by the Company or any Subsidiary Guarantor with
      any provision of this Indenture, the Notes or any Subsidiary
      Guarantee.

     

    Notwithstanding
      the provisions of this Section
      902,
      without
      the consent of each Holder affected, an amendment or waiver, including a waiver
      pursuant to Section
      613,
      may
      not:

     

    (i)  reduce
      the principal amount of the Notes whose Holders must consent to an amendment
      or
      waiver;

     

    (ii)  reduce
      the rate of or extend the time for payment of interest on any Note;

     

    (iii)  reduce
      the principal of or extend the Stated Maturity of any Note;

     

    (iv)  reduce
      the premium payable upon the redemption of any Note or change the date on which
      any Note may be redeemed as described in Section
      1001;

     

    (v)  make
      any
      Note payable in money other than that stated in such Note;

     

    (vi)  impair
      the right of any Holder to receive payment of principal of and interest on
      such
      Holder’s Notes on or after the due dates therefor or to institute suit for the
      enforcement of any such payment on or with respect to such Holder’s Notes;
      or

     

    (vii)  make
      any
      change in the amendment or waiver provisions described in this
      paragraph.

     

    It
      shall
      not be necessary for the consent of the Holders under this Section
      902
      to
      approve the particular form of any proposed amendment, supplement or waiver,
      but
      it shall be sufficient if such consent approves the substance
      thereof.

     

    After
      an
      amendment, supplement or waiver under this Section
      902
      becomes
      effective, the Company shall mail to the Holders, with a copy to the Trustee,
      a
      notice briefly 

     

    
      
        
        

      

      
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    describing
      the amendment, supplement or waiver. Any failure of the Company to mail such
      notice, or any defect therein, shall not, however, in any way impair or affect
      the validity of any supplemental indenture or the effectiveness of any such
      amendment, supplement or waiver.

     

    Section
      903.  Execution
      of Amendments, Supplements or Waivers.
      The
      Trustee shall sign any amendment, supplement or waiver authorized pursuant
      to
      this Article
      IX
      if the
      amendment, supplement or waiver does not adversely affect the rights, duties,
      liabilities or immunities of the Trustee. If it does, the Trustee may, but
      need
      not, sign it. In signing or refusing to sign such amendment, supplement or
      waiver, the Trustee shall be entitled to receive, and shall be fully protected
      in relying upon, an Officer’s Certificate and an Opinion of Counsel to the
      effect that the execution of such amendment, supplement or waiver has been
      duly
      authorized, executed and delivered by the Company and that, subject to
      applicable bankruptcy, insolvency, fraudulent transfer, fraudulent conveyance,
      reorganization, moratorium and other laws now or hereinafter in effect affecting
      creditors’ rights or remedies generally and to general principles of equity
      (including standards of materiality, good faith, fair dealing and
      reasonableness), whether considered in a proceeding at law or at equity, such
      amendment, supplement or waiver is a valid and binding agreement of the Company,
      enforceable against the Company in accordance with its terms.

     

    Section
      904.  Revocation
      and Effect of Consents.
      Until
      an amendment, supplement or waiver becomes effective, a consent to it by a
      Holder is a continuing consent by the Holder and every subsequent Holder of
      that
      Note or any Note that evidences all or any part of the same debt as the
      consenting Holder’s Note, even if notation of the consent is not made on any
      Note. Subject to the following paragraph of this Section
      904,
      any
      such Holder or subsequent Holder may revoke the consent as to such Holder’s Note
      by written notice to the Trustee or the Company, received by the Trustee or
      the
      Company, as the case may be, before the date on which the Trustee receives
      an
      Officer’s Certificate certifying that the Holders of the requisite principal
      amount of Notes have consented (and not theretofore revoked such consent) to
      the
      amendment, supplement or waiver. The Company may, but shall not be obligated
      to,
      fix a record date for the purpose of determining the Holders entitled to consent
      to any amendment, supplement or waiver as set forth in Section
      108.
      

     

    After
      an
      amendment, supplement or waiver becomes effective, it shall bind every Holder
      of
      Notes, unless it makes a change described in any of clauses (i) through (vii)
      of
      the second paragraph of Section
      902.
      In that
      case, the amendment, supplement or waiver shall bind each Holder of a Note
      who
      has consented to it and every subsequent Holder of such Note or any Note that
      evidences all or any part of the same debt as the consenting Holder’s
      Note.

     

    Section
      905.  Conformity
      with TIA.
      Every
      amendment or supplemental indenture executed pursuant to this Article shall
      conform to the requirements of the TIA as then in effect.

     

    Section
      906.  Notation
      on or Exchange of Notes.
      If an
      amendment, supplement or waiver changes the terms of a Note, the Trustee shall
      (if required by the Company and in accordance with the specific direction of
      the
      Company) request the Holder of the Note to deliver it to the Trustee. The
      Trustee shall (if required by the Company and in accordance with the specific
      direction of the Company) place an appropriate notation on the Note about the
      changed 

     

    
      
        
        

      

      
        97

        
          

        

      

      
        
        

      

    

    terms
      and
      return it to the Holder. Alternatively, if the Company or the Trustee so
      determines, the Company in exchange for the Note shall issue and the Trustee
      shall authenticate a new Note that reflects the changed terms. Failure to make
      the appropriate notation or issue a new Note shall not affect the validity
      and
      effect of such amendment, supplement or waiver.

     

    ARTICLE
      X  

     

    REDEMPTION
      of NOTES

     

    Section
      1001.  Right
      of Redemption.
      (a)
      The
      Floating Rate Notes will be redeemable, at the Company’s option, in whole or in
      part, at any time and from time to time on and after May 15, 2008 and prior
      to
      maturity at the applicable redemption price set forth below. The 7.625% Notes
      will be redeemable, at the Company’s option, in whole or in part, at any time
      and from time to time on and after May 15, 2010 and prior to maturity at the
      applicable redemption price set forth below. The 7.75% Notes will be redeemable,
      at the Company’s option, in whole or in part, at any time and from time to time
      on and after May 15, 2011 and prior to maturity at the applicable redemption
      price set forth below. Such redemption may be made upon notice mailed by
      first-class mail to each Holder’s registered address in accordance with
Section
      1005.
      The
      Company may provide in such notice that payment of the redemption price and
      the
      performance of the Company’s obligations with respect to such redemption may be
      performed by another Person. Any such redemption and notice may, in the
      Company’s discretion, be subject to the satisfaction of one or more conditions
      precedent, including but not limited to the occurrence of a Change of Control.
      The Notes will be so redeemable at the following redemption prices (expressed
      as
      a percentage of principal amount), plus accrued and unpaid interest, if any,
      to,
      but not including, the relevant Redemption Date (subject to Section 307),
      if
      redeemed during the 12-month period commencing on May 15 of the years set forth
      below:

     

    
      	
              Floating
                Rate Notes

            	 
	
              Redemption
                Period

            	
              Price

            
	
              2008

            	
              103.000%

            
	
              2009

            	
              102.000%

            
	
              2010

            	
              101.000%

            
	
              2011
                and thereafter

            	
              100.000%

            
	 	 
	
              7.625%
                Notes

            	 
	
              Redemption
                Period

            	
              Price

            
	
              2010

            	
              103.813%

            
	
              2011

            	
              101.906%

            
	
              2012
                and thereafter

            	
              100.000%

            
	 	 
	
              7.75%
                Notes

            	 
	
              Redemption
                Period

            	
              Price

            
	
              2011

            	
              103.875%

            
	
              2012

            	
              102.583%

            
	
              2013

            	
              101.292%

            
	
              2014
                and thereafter

            	
              100.000%

            

    

     

    
      
        
        

      

      
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    (b)  In
      addition, at any time and from time to time on or prior to May 15, 2008 for
      the
      Floating Rate Notes and prior to May 15, 2009 for the 7.625% Notes and the
      7.75%
      Notes, the Company at its option may redeem Notes in an aggregate principal
      amount equal to (x) up to 35% of the original aggregate principal amount of
      the
      Floating Rate Notes (including the principal amount of any Additional Floating
      Rate Notes), (y) up to 35% of the original aggregate principal amount of the
      7.625% Notes (including the principal amount of any Additional 7.625% Notes)
      and
      (z) up to 35% of the original aggregate principal amount of 7.75% Notes
      (including the principal amount of any Additional 7.75% Notes), with funds
      in an
      aggregate amount (the “Redemption
      Amount”)
      not
      exceeding the aggregate proceeds of one or more Equity Offerings, at a
      redemption price (expressed as a percentage of principal amount thereof) of
      100%
      plus the applicable rate of interest per annum on the date on which notice
      of
      redemption is given for the Floating Rate Notes, 107.625% for the 7.625% Notes
      and 107.75% for the 7.75% Notes, in each case plus accrued and unpaid interest,
      if any, to, but not including, the Redemption Date (subject to Section
      307);
      provided,
      however,
      that

     

    (1)  if
      Floating Rate Notes are redeemed, an aggregate principal amount of Floating
      Rate
      Notes equal to at least 65% of the original aggregate principal amount of
      Floating Rate Notes (including the principal amount of any Additional Floating
      Rate Notes) must remain outstanding after each such redemption of Floating
      Rate
      Notes, 

     

    (2)  if
      7.625%
      Notes are redeemed, an aggregate principal amount of 7.625% Notes equal to
      at
      least 65% of the original aggregate principal amount of 7.625% Notes (including
      the principal amount of any Additional 7.625% Notes) must remain outstanding
      after each such redemption of 7.625% Notes, and

     

    (3)  if
      7.75%
      Notes are redeemed, an aggregate principal amount of 7.75% Notes equal to at
      least 65% of the original aggregate principal amount of 7.75% Notes (including
      the principal amount of any Additional 7.75% Notes) must remain outstanding
      after each such redemption of 7.75% Notes.

     

    The
      Company may make such redemption upon notice mailed by first-class mail to
      each
      Holder’s registered address in accordance with Section
      1005
      (but in
      no event more than 180 days after the completion of the related Equity
      Offering). The Company may provide in such notice that payment of the redemption
      price and performance of the Company’s obligations with respect to such
      redemption may be performed by another Person. Any such notice may be given
      prior to the completion of the related Equity Offering, and any such redemption
      or notice may, at the Company’s discretion, be subject to the satisfaction of
      one or more conditions precedent, including but not limited to the completion
      of
      the related Equity Offering.

     

    (c)  At
      any
      time prior to May 15, 2008, in the case of the Floating Rate Notes; May 15,
      2010, in the case of the 7.625% Notes; and May 15, 2011, in the case of the
      7.75% Notes, such Notes may also be redeemed or purchased (by the Company or
      any
      other Person) in whole or in part, at the Company’s option, at a price (the
“Redemption
      Price”)
      equal
      to 100% of the principal amount thereof plus the Applicable Premium as of,
      and
      accrued but unpaid interest, if any, to, but not including, the Redemption
      Date
      (subject to Section
      307).
      Such
      redemption or purchase may be made upon notice mailed by first-class mail to
      each Holder’s registered address in accordance with Section 1005.
      The
      Company may provide in such notice that payment of the 

     

    
      
        
        

      

      
        99

        
          

        

      

      
        
        

      

    

    Redemption
      Price and performance of the Company’s obligations with respect to such
      redemption or purchase may be performed by another Person. Any such redemption,
      purchase or notice may, at the Company’s discretion, be subject to the
      satisfaction of one or more conditions precedent, including but not limited
      to
      the occurrence of a Change of Control.

     

    “Applicable
      Premium”
means,
      with respect to a Note at any Redemption Date, the greater of (i) 1.0% of the
      principal amount of such Note and (ii) the excess of (A) the present value
      at
      such Redemption Date of (1) the redemption price of such Note on May 15, 2008,
      in the case of a Floating Rate Note; May 15, 2010, in the case of a 7.625%
      Note;
      and May 15, 2011, in the case of a 7.75% Note (such redemption price being
      that
      described in Section
      100l(a))
      plus
      (2) all required remaining scheduled interest payments due on such Note through
      such date, computed using a discount rate equal to the Treasury Rate plus 50
      basis points, over (B) the principal amount of such Note on such Redemption
      Date; as calculated by the Company or on behalf of the Company by such Person
      as
      the Company shall designate; provided
      that
      such calculation shall not be a duty or obligation of the Trustee.

     

    “Treasury
      Rate”
means,
      with respect to a Redemption Date, the yield to maturity at the time of
      computation of United States Treasury securities with a constant maturity (as
      compiled and published in the most recent Federal Reserve Statistical Release
      H.15(519) that has become publicly available at least two Business Days prior
      to
      such Redemption Date (or, if such Statistical Release is no longer published,
      any publicly available source of similar market data)) most nearly equal to
      the
      period from such Redemption Date to May 15, 2008, in the case of a Floating
      Rate
      Note; May 15, 2010, in the case of a 7.625% Note; and May 15, 2011, in the
      case
      of a 7.75% Note; provided,
      however,
      that if
      the period from the Redemption Date to such date is not equal to the constant
      maturity of a United States Treasury security for which a weekly average yield
      is given, the Treasury Rate shall be obtained by linear interpolation
      (calculated to the nearest one-twelfth of a year) from the weekly average yields
      of United States Treasury securities for which such yields are given, except
      that if the period from the Redemption Date to such date is less than one year,
      the weekly average yield on actually traded United States Treasury securities
      adjusted to a constant maturity of one year shall be used.

     

    Section
      1002.  Applicability
      of Article.
      Redemption or purchase of Notes as permitted by Section
      1001
      shall be
      made in accordance with this Article
      X.

     

    Section
      1003.  Election
      to Redeem; Notice to Trustee.
      In case
      of any redemption at the election of the Company of less than all of the Notes,
      the Company shall, at least two Business Days (but not more than 60 days) prior
      to the date on which notice is required to be mailed or caused to be mailed
      to
      Holders pursuant to Section
      1005,
      notify
      the Trustee of such Redemption Date and of the principal amount of Notes to
      be
      redeemed.

     

    Section
      1004.  Selection
      by Trustee of Notes to Be Redeemed.
      In the
      case of any partial redemption, selection of the Notes for redemption will
      be
      made by the Trustee not more than 60 days prior to the Redemption Date on a
      pro
      rata
      basis
      or, to the extent a pro
      rata
      basis is
      not permitted, by such other method as the Trustee shall deem to be fair and
      appropriate, although no Note of $2,000 in original principal amount or less
      will be redeemed in part.

     

    
      
        
        

      

      
        100

        
          

        

      

      
        
        

      

    

    The
      Trustee shall promptly notify the Company in writing of the Notes selected
      for
      redemption and, in the case of any Note selected for partial redemption, the
      principal amount thereof to be redeemed. On and after the Redemption Date,
      interest will cease to accrue on Notes or portions thereof called for
      redemption.

     

    For
      all
      purposes of this Indenture, unless the context otherwise requires, all
      provisions relating to the redemption of Notes shall relate, in the case of
      any
      Note redeemed or to be redeemed only in part, to the portion of the principal
      of
      such Note that has been or is to be redeemed.

     

    Section
      1005.  Notice
      of Redemption.
      Notice
      of redemption or purchase as provided in Section
      1001
      shall be
      given by first-class mail, postage prepaid, mailed not less than 30 nor more
      than 60 days prior to the Redemption Date, to each Holder of Notes to be
      redeemed, at such Holder’s address appearing in the Note Register.

     

    Any
      such
      notice shall state:

     

    (1)  the
      expected Redemption Date;

     

    (2)  the
      redemption price (or the formula by which the redemption price will be
      determined);

     

    (3)  if
      less
      than all Outstanding Notes are to be redeemed, the identification (and, in
      the
      case of partial redemption, the portion of the respective principal amounts)
      of
      the Notes to be redeemed;

     

    (4)  that,
      on
      the Redemption Date, the redemption price will become due and payable upon
      each
      such Note, and that, unless the Company defaults in making such redemption
      payment or the Paying Agent is prohibited from making such payment pursuant
      to
      the terms of this Indenture, interest thereon shall cease to accrue from and
      after said date; and

     

    (5)  the
      place
      where such Notes are to be surrendered for payment of the redemption
      price.

     

    In
      addition, if such redemption, purchase or notice is subject to satisfaction
      of
      one or more conditions precedent, as permitted by Section
      1001,
      such
      notice shall describe each such condition, and if applicable, shall state that,
      in the Company’s discretion, the Redemption Date may be delayed until such time
      as any or all such conditions shall be satisfied, or such redemption or purchase
      may not occur and such notice may be rescinded in the event that any or all
      such
      conditions shall not have been satisfied by the Redemption Date, or by the
      Redemption Date as so delayed.

     

    The
      Company may provide in such notice that payment of the redemption price and
      the
      performance of the Company’s obligations with respect to such redemption may be
      performed by another Person.

     

    
      
        
        

      

      
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    Notice
      of
      such redemption or purchase of Notes to be so redeemed or purchased at the
      election of the Company shall be given by the Company or, at the Company’s
      request (made to the Trustee at least 40 days (or such shorter period as shall
      be satisfactory to the Trustee) prior to the Redemption Date), by the Trustee
      in
      the name and at the expense of the Company. Any such request will set forth
      the
      information to be stated in such notice, as provided by this Section
      1005.

     

    The
      notice if mailed in the manner herein provided shall be conclusively presumed
      to
      have been given, whether or not the Holder receives such notice. In any case,
      failure to give such notice by mail or any defect in the notice to the Holder
      of
      any Note designated for redemption as a whole or in part shall not affect the
      validity of the proceedings for the redemption of any other Note.

     

    Section
      1006.  Deposit
      of Redemption Price.
      On or
      prior to 12:00 p.m., New York City time, on any Redemption Date, the Company
      shall deposit with the Trustee or with a Paying Agent (or, if the Company is
      acting as its own Paying Agent, the Company shall segregate and hold in trust
      as
      provided in Section
      403)
      an
      amount of money sufficient to pay the redemption price of, and any accrued
      and
      unpaid interest on, all the Notes or portions thereof which are to be redeemed
      on that date.

     

    Section
      1007.  Notes
      Payable on Redemption Date.
      Notice
      of redemption having been given as provided in this Article
      X,
      the
      Notes so to be redeemed shall, on the Redemption Date, become due and payable
      at
      the redemption price herein specified and from and after such date (unless
      the
      Company shall default in the payment of the redemption price or the Paying
      Agent
      is prohibited from paying the redemption price pursuant to the terms of this
      Indenture) such Notes shall cease to bear interest. Upon surrender of such
      Notes
      for redemption in accordance with such notice, such Notes shall be paid by
      the
      Company at the redemption price. Installments of interest whose Interest Payment
      Date is on or prior to the Redemption Date shall be payable to the Holders
      of
      such Notes registered as such on the relevant Regular Record Dates according
      to
      their terms and the provisions of Section
      307.

     

    On
      and
      after any Redemption Date, if money sufficient to pay the redemption price
      of
      and any accrued and unpaid interest on Notes called for redemption shall have
      been made available in accordance with Section
      1006,
      the
      Notes (or the portions thereof) called for redemption will cease to accrue
      interest and the only right of the Holders of such Notes (or portions thereof)
      will be to receive payment of the redemption price of and, subject to the last
      sentence of the preceding paragraph, any accrued and unpaid interest on such
      Notes (or portions thereof) to the Redemption Date. If any Note (or portion
      thereof) called for redemption shall not be so paid upon surrender thereof
      for
      redemption, the principal (and premium, if any) shall, until paid, bear interest
      from the Redemption Date at the rate borne by the Note (or portion
      thereof).

     

    Section
      1008.  Notes
      Redeemed in Part.
      Any
      Note that is to be redeemed only in part shall be surrendered at the Place
      of
      Payment (with, if the Company or the Trustee so requires, due endorsement by,
      or
      a written instrument of transfer in form satisfactory to the Company and the
      Trustee duly executed by, the Holder thereof or its attorney duly authorized
      in
      writing) and the Company shall execute and the Trustee shall authenticate and
      deliver to the Holder of such Note without service charge, a new Note or Notes,
      of any authorized 

     

    
      
        
        

      

      
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    denomination
      as requested by such Holder in aggregate principal amount equal to and in
      exchange for the unredeemed portion of the principal of the Note so
      surrendered.

     

    ARTICLE
      XI

     

    SATISFACTION
      AND DISCHARGE

     

    Section
      1101.  Satisfaction
      and Discharge of Indenture.
      This
      Indenture shall be discharged and shall cease to be of further effect (except
      as
      to any surviving rights of registration of transfer or exchange of Notes herein
      expressly provided for), and the Trustee, on demand of and at the expense of
      the
      Company, shall execute proper instruments acknowledging satisfaction and
      discharge of this Indenture, when

     

    (i)  either

     

    (a)  all
      Notes
      theretofore authenticated and delivered (other than Notes that have been
      destroyed, lost or stolen and that have been replaced or paid as provided in
      Section
      306,
      and
      (ii) Notes for whose payment money has theretofore been deposited in trust
      or
      segregated and held in trust by the Company and thereafter repaid to the Company
      or discharged from such trust, as provided in Section
      403)
      have
      been delivered to the Trustee cancelled or for cancellation; or

     

    (b)  all
      such
      Notes not theretofore delivered to the Trustee cancelled or for
      cancellation

     

    (1)  have
      become due and payable, or

     

    (2)  will
      become due and payable at their Stated Maturity within one year, or

     

    (3)  have
      been
      or are to be called for redemption within one year under arrangements reasonably
      satisfactory to the Trustee for the giving of notice of redemption by the
      Trustee in the name, and at the expense, of the Company,

     

    (ii)  the
      Company has irrevocably deposited or caused to be deposited with the Trustee
      money or U.S. Government Obligations, or a combination thereof, sufficient
      (without reinvestment) to pay and discharge the entire Indebtedness on such
      Notes not theretofore delivered to the Trustee cancelled or for cancellation,
      for principal (and premium, if any) and interest to, but not including, the
      date
      of such deposit (in the case of Notes that have become due and payable), or
      to
      the Stated Maturity or Redemption Date, as the case may be (provided
      that if
      such redemption shall be pursuant to Section
      1001(c),
      (x) the
      amount of money or U.S. Government Obligations or a combination thereof that
      the
      Company must irrevocably deposit or cause to be deposited shall be determined
      using an assumed Applicable Premium calculated as of the date of such deposit,
      and (y) the Company must irrevocably deposit or cause to be deposited additional
      money in trust on 

     

    
      
        
        

      

      
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    the
      Redemption Date, as required by Section
      1006,
      as
      necessary to pay the Applicable Premium as determined on such
      date);

     

    (iii)  the
      Company has paid or caused to be paid all other sums then payable hereunder
      by
      the Company; and

     

    (iv)  the
      Company has delivered to the Trustee an Officer’s Certificate of the Company and
      an Opinion of Counsel, each to the effect that all conditions precedent provided
      for in this Section
      1101
      relating
      to the satisfaction and discharge of this Indenture have been complied with,
      provided
      that any
      such counsel may rely on any Officer’s Certificate as to matters of fact
      (including as to compliance with the foregoing clauses (i), (ii) and
      (iii)).

     

    Notwithstanding
      the satisfaction and discharge of this Indenture, the obligations of the Company
      to the Trustee under Section
      707
      and, if
      money shall have been deposited with the Trustee pursuant to Section
      110l(ii),
      the
      obligations of the Trustee under Section
      1102
      shall
      survive.

     

    Section
      1102.  Application
      of Trust Money.
      Subject
      to the provisions of the last paragraph of Section
      403,
      all
      money and/or U.S. Government Obligations (including the proceeds thereof)
      deposited with the Trustee pursuant to Section
      1101
      shall be
      held in trust and applied by it, in accordance with the provisions of the Notes
      and this Indenture, to the payment, either directly or through any Paying Agent
      as the Trustee may determine, to the Persons entitled thereto, of the principal
      (and premium, if any) and interest on the Notes; but such money need not be
      segregated from other funds except to the extent required by law.

     

    ARTICLE
      XII

    DEFEASANCE
      OR COVENANT DEFEASANCE

     

    Section
      1201.  The
      Company’s Option to Effect Defeasance or Covenant Defeasance.
      The
      Company may, concurrently (and not separately) at its option, at any time,
      elect
      to have terminated the obligations of the Company with respect to Outstanding
      Notes and to have terminated all of the obligations of the Subsidiary Guarantors
      with respect to the Subsidiary Guarantees, in each case, as set forth in this
      Article
      XII,
      and
      elect to have either Section
      1202
      or
Section
      1203
      be
      applied to all of the Outstanding Notes (the “Defeased
      Notes”),
      upon
      compliance with the conditions set forth below in Section
      1204.
      Either
Section
      1202
      or
Section
      1203
      may be
      applied to the Defeased Notes to any Redemption Date or the Stated Maturity
      of
      the Notes.

     

    Section
      1202.  Defeasance
      and Discharge.
      Upon
      the Company’s exercise under Section
      1201
      of the
      option applicable to this Section
      1202,
      the
      Company shall be deemed to have been released and discharged from its
      obligations with respect to the Defeased Notes on the date the relevant
      conditions set forth in Section
      1204
      below
      are satisfied (hereinafter, “Defeasance”).
      For
      this purpose, such Defeasance means that the Company shall be deemed to have
      paid and discharged the entire Indebtedness represented by the Defeased Notes,
      which shall thereafter be deemed to be “Outstanding” only for the purposes of
Section
      1205
      and the
      other Sections of this 

     

    
      
        
        

      

      
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    Indenture
      referred to in clauses (a) and (b) below, and the Company and each of the
      Subsidiary Guarantors shall be deemed to have satisfied all other obligations
      under such Notes and this Indenture insofar as such Notes are concerned (and
      the
      Trustee, at the expense of the Company, shall execute proper instruments
      acknowledging the same), except for the following, which shall survive until
      otherwise terminated or discharged hereunder: (a) the rights of Holders of
      Defeased Notes to receive, solely from the trust fund described in Section
      1204
      and as
      more fully set forth in such Section, payments in respect of the principal
      of
      and premium, if any, and interest on such Notes when such payments are due,
      (b)
      the Company’s obligations with respect to such Defeased Notes under Sections
      304,
      305,
      306,
      402
      and
403,
      (c) the
      rights, powers, trusts, duties and immunities of the Trustee hereunder,
      including the Trustee’s rights under Section
      707,
      and (d)
      this Article
      XII.
      If the
      Company exercises its option under this Section
      1202,
      payment
      of the Notes may not be accelerated because of an Event of Default with respect
      thereto. Subject to compliance with this Article
      XII,
      the
      Company may, at its option and at any time, exercise its option under this
      Section
      1202
      notwithstanding the prior exercise of its option under Section 1203
      with
      respect to the Notes.

     

    Section
      1203.  Covenant
      Defeasance.
      Upon
      the Company’s exercise under Section
      1201
      of the
      option applicable to this Section
      1203,
      (a) the
      Company and the Subsidiary Guarantors shall be released from their respective
      obligations under any covenant or provision contained in Section
      405
      and
Sections
      407
      through
415
      and the
      provisions of clauses (iii), (iv) and (v) of Section
      50l(a)
      shall
      not apply, and (b) the occurrence of any event specified in clause (iv), (v)
      (with respect to Section
      405
      and
Sections
      407
      through
415,
      inclusive), (vi), (vii), (viii) (with respect to Subsidiaries), (ix) (with
      respect to Subsidiaries), (x) or (xi) of Section
      601
      shall be
      deemed not to be or result in an Event of Default, in each case with respect
      to
      the Defeased Notes on and after the date the conditions set forth below are
      satisfied (hereinafter, “Covenant
      Defeasance”),
      and
      the Notes shall thereafter be deemed not to be “Outstanding” for the purposes of
      any direction, waiver, consent or declaration or Act of Holders (and the
      consequences of any thereof) in connection with such covenants or provisions,
      but shall continue to be deemed “Outstanding” for all other purposes hereunder.
      For this purpose, such Covenant Defeasance means that, with respect to the
      Outstanding Notes, the Company and the Subsidiary Guarantors may omit to comply
      with and shall have no liability in respect of any term, condition or limitation
      set forth in any such covenant or provision, whether directly or indirectly,
      by
      reason of any reference elsewhere herein to any such covenant or provision
      or by
      reason of any reference in any such covenant or provision to any other provision
      herein or in any other document and such omission to comply shall not constitute
      a Default or an Event of Default under Section
      601,
      but,
      except as specified above, the remainder of this Indenture and such Outstanding
      Notes shall be unaffected thereby.

     

    Section
      1204.  Conditions
      to Defeasance or Covenant Defeasance.
      The
      following shall be the conditions to application of either Section
      1202
      or
Section
      1203
      to the
      Outstanding Notes:

     

    (1)  The
      Company shall have irrevocably deposited or caused to be deposited with the
      Trustee, in trust, money or U.S. Government Obligations, or a combination
      thereof, in amounts as will be sufficient (without reinvestment), to pay and
      discharge the principal of, and premium, if any, and interest on the Defeased
      Notes to the Stated Maturity or relevant Redemption Date in accordance with
      the
      terms of this Indenture and 

     

    
      
        
        

      

      
        105

        
          

        

      

      
        
        

      

    

    the
      Notes
      (provided
      that if
      such redemption shall be pursuant to Section
      1001(c),
      (x) the
      amount of money or U.S. Government Obligations or a combination thereof that
      the
      Company must irrevocably deposit or cause to be deposited shall be determined
      using an assumed Applicable Premium calculated as of the date of such deposit,
      and (y) the Company must irrevocably deposit or cause to be deposited additional
      money in trust on the Redemption Date, as required by Section
      1006,
      as
      necessary to pay the Applicable Premium as determined on such
      date);

     

    (2)  No
      Default or Event of Default shall have occurred and be continuing on the date
      of
      such deposit;

     

    (3)  Such
      deposit shall not result in a breach or violation of, or constitute a Default
      or
      Event of Default under, this Indenture or any other material agreement or
      instrument to which the Company is a party or by which it is bound;

     

    (4)  In
      the
      case of an election under Section
      1202,
      the
      Company shall have delivered to the Trustee an Opinion of Counsel (subject
      to
      customary exceptions and exclusions) to the effect that (x) the Company has
      received from, or there has been published by, the Internal Revenue Service
      a
      ruling or (y) since the Issue Date, there has been a change in the applicable
      federal income tax law, in either case to the effect that, and based thereon
      such opinion shall confirm to the effect that, the Holders of the Outstanding
      Notes will not recognize income, gain or loss for federal income tax purposes
      as
      a result of such Defeasance and will be subject to federal income tax on the
      same amounts, in the same manner and at the same times as would have been the
      case if such Defeasance had not occurred; provided
      that
      such Opinion of Counsel need not be delivered if all Notes theretofore
      authenticated and delivered (other than (i) Notes that have been destroyed,
      lost
      or stolen and that have been replaced or paid as provided in Section
      306,
      and
      (ii) Notes for whose payment money has theretofore been deposited in trust
      or
      segregated and held in trust by the Company and thereafter repaid to the Company
      or discharged from such trust, as provided in Section
      403)
      not
      theretofore delivered to the Trustee for cancellation have become due and
      payable, will become due and payable at their Stated Maturity within one year,
      or are to be called for redemption within one year under arrangements reasonably
      satisfactory to the Trustee in the name, and at the expense, of the
      Company;

     

    (5)  In
      the
      case of an election under Section
      1203,
      the
      Company shall have delivered to the Trustee an Opinion of Counsel (subject
      to
      customary exceptions and exclusions) to the effect that the Holders of the
      Outstanding Notes will not recognize income, gain or loss for federal income
      tax
      purposes as a result of such Covenant Defeasance and will be subject to federal
      income tax on the same amounts, in the same manner and at the same times as
      would have been the case if such Covenant Defeasance had not occurred;
      and

     

    (6)  The
      Company shall have delivered to the Trustee an Officer’s Certificate and an
      Opinion of Counsel, each to the effect that all conditions precedent provided
      for in this Section
      1204
      relating
      to either the Defeasance under Section
      1202
      or the
      Covenant Defeasance under Section
      1203,
      as the
      case may be, have been complied with. In 

     

    
      
        
        

      

      
        106

        
          

        

      

      
        
        

      

    

    rendering
      such Opinion of Counsel, counsel may rely on an Officer’s Certificate as to
      compliance with the foregoing clauses (1), (2) and (3) of this Section
      1204
      or as to
      any matters of fact.

     

    Section
      1205.  Deposited
      Money and U.S. Government Obligations to Be Held in Trust; Other Miscellaneous
      Provisions.
      Subject
      to the provisions of the last paragraph of Section 403,
      all
      money and U.S. Government Obligations (including the proceeds thereof) deposited
      with the Trustee (or such other Person that would qualify to act as successor
      Trustee under Article
      VII,
      collectively and solely for purposes of this Section
      1205,
      the
“Trustee”)
      pursuant to Section
      1204
      in
      respect of the Defeased Notes shall be held in trust and applied by the Trustee,
      in accordance with the provisions of such Notes and this Indenture, to the
      payment, either directly or through any Paying Agent as the Trustee may
      determine, to the Holders of such Notes of all sums due and to become due
      thereon in respect of principal, premium, if any, and interest, but such money
      need not be segregated from other funds except to the extent required by
      law.

     

    The
      Company shall pay and indemnify the Trustee and its agents and hold them
      harmless against any tax, fee or other charge imposed on or assessed against
      the
      U.S. Government Obligations deposited pursuant to Section
      1204,
      or the
      principal, premium, if any, and interest received in respect thereof, other
      than
      any such tax, fee or other charge that by law is for the account of the Holders
      of the Defeased Notes.

     

    Anything
      in this Article
      XII
      to the
      contrary notwithstanding, the Trustee shall deliver to the Company from time
      to
      time, upon Company Request, any money or U.S. Government Obligations held by
      it
      as provided in Section
      1204
      that, in
      the opinion of a nationally recognized accounting or investment banking firm
      expressed in a written certification thereof to the Trustee, are in excess
      of
      the amount thereof that would then be required to be deposited to effect an
      equivalent Defeasance or Covenant Defeasance. Subject to Article
      VII,
      the
      Trustee shall not incur any liability to any Person by relying on such
      opinion.

     

    Section
      1206.  Reinstatement.
      If the
      Trustee or Paying Agent is unable to apply any money or U.S. Government
      Obligations in accordance with Section
      1202
      or
1203,
      as the
      case may be, by reason of any order or judgment of any court or governmental
      authority enjoining, restraining or otherwise prohibiting such application,
      then
      the obligations of the Company and each of the Subsidiary Guarantors under
      this
      Indenture, the Notes and the Subsidiary Guarantees shall be revived and
      reinstated as though no deposit had occurred pursuant to Section
      1202
      or
1203,
      as the
      case may be, until such time as the Trustee or Paying Agent is permitted to
      apply all such money and U.S. Government Obligations in accordance with
Section
      1202
      or
1203,
      as the
      case may be; provided,
      however,
      that if
      the Company or any Subsidiary Guarantor makes any payment of principal, premium,
      if any, or interest on any Note following the reinstatement of its obligations,
      the Company or Subsidiary Guarantor, as the case may be, shall be subrogated
      to
      the rights of the Holders of such Notes to receive such payment from the money
      and U.S. Government Obligations held by the Trustee or Paying
      Agent.

     

    Section
      1207.  Repayment
      to the Company.
      The
      Trustee shall pay to the Company upon Company Request any money held by it
      for
      the payment of principal or interest that remains unclaimed for two years.
      After
      payment to the Company, Holders entitled to money 

     

    
      
        
        

      

      
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    must
      look
      to the Company for payment as general creditors unless an applicable abandoned
      property law designates another Person and all liability of the Trustee or
      Paying Agent with respect to such money shall thereupon cease.

     

    ARTICLE
      XIII

     

    GUARANTEES

     

    Section
      1301.  Guarantees
      Generally.

     

    (a)  Guarantee
      of Each Guarantor.
      Each
      Guarantor, as primary obligor and not merely as surety, will jointly and
      severally, irrevocably, fully and unconditionally Guarantee, on an unsecured
      unsubordinated basis, the punctual payment when due, whether at Stated Maturity,
      by acceleration or otherwise, of all monetary obligations of the Company under
      this Indenture and the Notes, whether for principal of or interest on the Notes,
      expenses, indemnification or otherwise (all such obligations guaranteed by
      the
      Subsidiary Guarantors being herein called the “Subsidiary
      Guaranteed Obligations”).

     

    The
      obligations of each Guarantor will be limited to the maximum amount as will,
      after giving effect to all other contingent and fixed liabilities of such
      Guarantor (including but not limited to any Guarantee by it of any Bank
      Indebtedness) and after giving effect to any collections from or payments made
      by or on behalf of any other Guarantor in respect of the obligations of such
      other Guarantor under its Guarantee or pursuant to its contribution obligations
      under this Indenture, result in the obligations of such Guarantor under the
      Guarantee not constituting a fraudulent conveyance or fraudulent transfer under
      applicable law, or being void or unenforceable under any law relating to
      insolvency of debtors.

     

    (b)  Further
      Agreements of Each Guarantor.
      (i)
      Each
      Guarantor hereby agrees that (to the fullest extent permitted by law) its
      obligations hereunder shall be unconditional, irrespective of the validity,
      regularity or enforceability of this Indenture, the Notes or the obligations
      of
      the Company or any other Guarantor to the Holders or the Trustee hereunder
      or
      thereunder, the absence of any action to enforce the same, any waiver or consent
      by any Holder with respect to any provisions hereof or thereof, any release
      of
      any other Guarantor, the recovery of any judgment against the Company, any
      action to enforce the same, whether or not a notation concerning its Guarantee
      is made on any particular Note, or any other circumstance that might otherwise
      constitute a legal or equitable discharge or defense of a
      Guarantor.

     

    (ii)  Each
      Guarantor hereby waives (to the fullest extent permitted by law) the benefit
      of
      diligence, presentment, demand of payment, filing of claims with a court in
      the
      event of insolvency or bankruptcy of the Company, any right to require a
      proceeding first against the Company, protest, notice and all demands whatsoever
      and covenants that (except as otherwise provided in Section
      1303)
      its
      Guarantee will not be discharged except by complete performance of the
      obligations contained in the Notes, this Indenture and this Guarantee. Such
      Guarantee is a guarantee of payment and not of collection. Each Guarantor
      further agrees (to the fullest extent permitted by law) that, as between it,
      on
      the one hand, and the Holders of Notes and the Trustee, on the other hand,
      

     

    
      
        
        

      

      
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    subject
      to this Article
      XIII,
      (1) the
      maturity of the obligations guaranteed by its Guarantee may be accelerated
      as
      and to the extent provided in Article
      VI
      for the
      purposes of such Guarantee, notwithstanding any stay, injunction or other
      prohibition preventing such acceleration in respect of the obligations
      guaranteed by such Guarantee, and (2) in the event of any acceleration of such
      obligations as provided in Article
      VI,
      such
      obligations (whether or not due and payable) shall forthwith become due and
      payable by such Guarantor in accordance with the terms of this Section 1301
      for the
      purpose of such Guarantee. Neither the Trustee nor any other Person shall have
      any obligation to enforce or exhaust any rights or remedies or to take any
      other
      steps under any security for the Subsidiary Guaranteed Obligations or against
      the Company or any other Person or any property of the Company or any other
      Person before the Trustee is entitled to demand payment and performance by
      any
      or all Subsidiary Guarantors of their obligations under their respective
      Subsidiary Guarantees or under this Indenture.

     

    (iii)  Until
      terminated in accordance with Section
      1303,
      each
      Guarantee shall remain in full force and effect and continue to be effective
      should any petition be filed by or against the Company for liquidation or
      reorganization, should the Company become insolvent or make an assignment for
      the benefit of creditors or should a receiver or trustee be appointed for all
      or
      any significant part of the Company’s assets, and shall, to the fullest extent
      permitted by law, continue to be effective or be reinstated, as the case may
      be,
      if at any time payment and performance of the Notes are, pursuant to applicable
      law, rescinded or reduced in amount, or must otherwise be restored or returned
      by any obligee on such Notes, whether as a “voidable preference,” “fraudulent
      transfer” or otherwise, all as though such payment or performance had not been
      made. In the event that any payment, or any part thereof, is rescinded, reduced,
      restored or returned, the Notes shall, to the fullest extent permitted by law,
      be reinstated and deemed reduced only by such amount paid and not so rescinded,
      reduced, restored or returned.

     

    (c)  Each
      Subsidiary Guarantor that makes a payment or distribution under its Subsidiary
      Guarantee shall have the right to seek contribution from the Company or any
      nonpaying Subsidiary Guarantor that has also Guaranteed the relevant Subsidiary
      Guaranteed Obligations in respect of which such payment or distribution is
      made,
      so long as the exercise of such right does not impair the rights of the Holders
      under the Subsidiary Guarantees.

     

    (d)  Each
      Guarantor acknowledges that it will receive direct and indirect benefits from
      the financing arrangements contemplated by this Indenture and that its
      Guarantee, and the waiver set forth in Section
      1305,
      are
      knowingly made in contemplation of such benefits.

     

    (e)  Each
      Guarantor, pursuant to its Guarantee, also hereby agrees to pay any and all
      reasonable out-of-pocket expenses (including reasonable counsel fees and
      expenses) incurred by the Trustee or the Holders in enforcing any rights under
      a
      Guarantee.

     

    Section
      1302.  Continuing
      Guarantees.
      (a)
      Each
      Guarantee shall be a continuing Guarantee and shall (i) subject to Section
      1303,
      remain
      in full force and effect until payment in full of the principal amount of all
      Outstanding Notes (whether by payment at maturity, purchase, redemption,
      defeasance, retirement or other acquisition) and all other obligations then
      due
      and 

     

    
      
        
        

      

      
        109

        
          

        

      

      
        
        

      

    

    owing,
      (ii) be binding upon such Guarantor and (iii) inure to the benefit of and be
      enforceable by the Trustee, the Holders and their permitted successors,
      transferees and assigns.

     

    (b)  The
      obligations of each Guarantor hereunder shall continue to be effective or shall
      be reinstated, as the case may be, if at any time any payment which would
      otherwise have reduced or terminated the obligations of any Guarantor hereunder
      and under its Guarantee (whether such payment shall have been made by or on
      behalf of the Company or by or on behalf of a Guarantor) is rescinded or
      reclaimed from any of the Holders upon the insolvency, bankruptcy, liquidation
      or reorganization of the Company or any Guarantor or otherwise, all as though
      such payment had not been made.

     

    Section
      1303.  Release
      of Guarantees.
      Notwithstanding the provisions of Section
      1302,
      a
      Guarantee will be subject to termination and discharge under the circumstances
      described in this Section
      1303.
      A
      Guarantor will automatically and unconditionally be released from all
      obligations under its Guarantee, and such Guarantee shall thereupon terminate
      and be discharged and of no further force or effect, (i) in the case of a
      Subsidiary Guarantor, concurrently with any direct or indirect sale or
      disposition (by merger or otherwise) of any Subsidiary Guarantor or any interest
      therein not prohibited by the terms of this Indenture (including Section
      411
      and
Section
      501)
      by the
      Company or a Restricted Subsidiary, following which such Subsidiary Guarantor
      is
      no longer a Restricted Subsidiary of the Company, (ii) at any time that such
      Guarantor is released from all of its obligations under all of its Guarantees
      of
      payment by the Company of any Indebtedness of the Company under the Senior
      Credit Facility (it being understood that a release subject to contingent
      reinstatement is still a release, and that if any such Guarantee is so
      reinstated, such Guarantee shall also be reinstated, (iii) upon the merger
      or
      consolidation of any Guarantor with and into the Company or another Guarantor
      that is the surviving Person in such merger or consolidation, or upon the
      liquidation of such Guarantor following or contemporaneously with the transfer
      of all of its assets to the Company or another Guarantor (iv) concurrently
      with
      a Subsidiary Guarantor becoming an Unrestricted Subsidiary, (v) upon legal
      or
      covenant defeasance of the Company’s obligations, or satisfaction and discharge
      of this Indenture, or (vi) subject to Section
      1302(b),
      upon
      payment in full of the aggregate principal amount of all Notes then Outstanding.
      In addition, the Company will have the right, upon 30 days’ notice to the
      Trustee, to cause any Subsidiary Guarantor that has not guaranteed payment
      by
      the Company of any Indebtedness of the Company under the Senior Credit Facility
      to be unconditionally released from all obligations under its Subsidiary
      Guarantee, and such Subsidiary Guarantee shall thereupon terminate and be
      discharged and of no further force or effect.

     

    Upon
      any
      such occurrence specified in this Section
      1303,
      the
      Trustee shall execute any documents reasonably required in order to evidence
      such release, discharge and termination in respect of the applicable
      Guarantee.

     

    Section
      1304.  [Reserved].

     

    Section
      1305.  Waiver
      of Subrogation.
      Each
      Guarantor hereby irrevocably waives any claim or other rights that it may now
      or
      hereafter acquire against the Company that arise from the existence, payment,
      performance or enforcement of the Company’s obligations under the Notes and this
      Indenture or such Guarantor’s obligations under its Subsidiary and this

     

    
      
        
        

      

      
        110

        
          

        

      

      
        
        

      

    

    Indenture,
      including any right of subrogation, reimbursement, exoneration, indemnification,
      and any right to participate in any claim or remedy of any Holder of Notes
      against the Company, whether or not such claim, remedy or right arises in
      equity, or under contract, statute or common law, until this Indenture is
      discharged and all of the Notes are discharged and paid in full. If any amount
      shall be paid to any Guarantor in violation of the preceding sentence and the
      Notes shall not have been paid in full, such amount shall be deemed to have
      been
      paid to such Guarantor for the benefit of, and held in trust for the benefit
      of,
      the Holders of the Notes, and shall forthwith be paid to the Trustee for the
      benefit of such Holders to be credited and applied upon the Notes, whether
      matured or unmatured, in accordance with the terms of this
      Indenture.

     

    Section
      1306.  Notation
      Not Required.
      Neither
      the Company nor any Guarantor shall be required to make a notation on the Notes
      to reflect any Guarantee or any release, termination or discharge
      thereof.

     

    Section
      1307.  Successors
      and Assigns of Guarantors.
      All
      covenants and agreements in this Indenture by each Guarantor shall bind its
      respective successors and assigns, whether so expressed or not.

     

    Section
      1308.  Execution
      and Delivery of Guarantees.
      The
      Notes shall be guaranteed by the Company’s parent company, Avis Budget Holdings,
      LLC (the “Parent
      Guarantor”).
      In
      addition, the Company shall cause each Restricted Subsidiary that is required
      to
      become a Subsidiary Guarantor pursuant to Section
      414,
      and
      each Subsidiary of the Company that the Company causes to become a Subsidiary
      Guarantor pursuant to Section
      414,
      to
      promptly execute and deliver to the Trustee a Supplemental Indenture
      substantially in the form set forth in Exhibit
      I
      to this
      Indenture, or otherwise in form and substance reasonably satisfactory to the
      Trustee, evidencing its Subsidiary Guarantee on substantially the terms set
      forth in this Article
      XIII.
      Concurrently therewith, the Company shall deliver to the Trustee an Opinion
      of
      Counsel in form and substance reasonably satisfactory to the Trustee to the
      effect that such Supplemental Indenture has been duly authorized, executed
      and
      delivered by such Restricted Subsidiary and that, subject to applicable
      bankruptcy, insolvency, fraudulent transfer, fraudulent conveyance,
      reorganization, moratorium and other laws now or hereafter in effect affecting
      creditors’ rights or remedies generally and to general principles of equity
      (including standards of materiality, good faith, fair dealing and
      reasonableness), whether considered in a proceeding at law or at equity, such
      Supplemental Indenture is a valid and binding agreement of such Restricted
      Subsidiary, enforceable against such Restricted Subsidiary in accordance with
      its terms.

     

    Section
      1309.  Notices.
      Notice
      to any Guarantor shall be sufficient if addressed to such Guarantor in care
      of
      the Company at the address, place and manner provided in Section
      109.

     

    

    
      
        
        

      

      
        111

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly
      executed, all as of the date first written above.

     

    

    
      	 	 	 	
              AVIS
                BUDGET CAR RENTAL, LLC

              AVIS
                BUDGET FINANCE, INC.

               

            	 
	 	 	
              By: 

            	
              /s/
                David B. Wyshner

            	 
	 	 	
              Name:

              Title:
                

            	
              David
                B. Wyshner 

              Executive
                Vice President, Chief Financial Officer and Treasurer

            	 

    

    

     

    
      	 	 	 	
              AVIS
                BUDGET HOLDINGS, LLC

               

            	 
	 	 	
              By: 

            	
              /s/
                David B. Wyshner

            	 
	 	 	
              Name:

              Title:
                

            	
              David
                B. Wyshner 

              Executive
                Vice President, Chief Financial Officer and Treasurer

            	 

    

    

     

    
      	 	 	 	
              AVIS
                ASIA AND PACIFIC, LIMITED

              AVIS
                CAR RENTAL GROUP, LLC

              AVIS
                CARIBBEAN, LIMITED

              AVIS
                ENTERPRISES, INC.

              AVIS
                GROUP HOLDINGS, LLC

              AVIS
                INTERNATIONAL, LTD.

              AVIS
                LEASING CORPORATION

              AVIS
                RENT A CAR SYSTEM, LLC

              PF
                CLAIMS MANAGEMENT, LTD.

               

            	 
	 	 	
              By: 

            	
              /s/
                David B. Wyshner

            	 
	 	 	
              Name:

              Title:
                

            	
              David
                B. Wyshner 

              Chief
                Financial Officer

            	 

    

    

     

     

    
      	 	 	 	
              CENDANT
                CAR RENTAL OPERATIONS SUPPORT, INC.

              WIZARD
                CO., INC.

               

            	 
	 	 	
              By: 

            	
              /s/
                David B. Wyshner

            	 
	 	 	
              Name:

              Title:
                

            	
              David
                B. Wyshner 

              Treasurer

            	 

    

          

     

    
      	 	 	 	
              ARACS
                LLC

              AVIS
                OPERATIONS, LLC

               

            	 
	 	 	
              By: 

            	
              /s/
                Robert E. Muhs 

            	 
	 	 	
              Name:

              Title:
                

            	
              Robert
                E. Muhs

              Vice
                President and Assistant Secretary

            	 

    

    

     

    
      Signature
        Page to Indenture in respect of Senior Notes

    

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	 	 	 	
                BGI
                  LEASING, INC.

                BUDGET
                  RENT A CAR SYSTEM, INC.

              	 
	 	 	
                By: 

              	
                /s/
                  David Blaskey 

              	 
	 	 	
                Name:

                Title:
                  

              	
                David
                  Blaskey 

                President

              	 

      

       

       

      
        	 	 	 	
                BUDGET
                  TRUCK RENTAL LLC 

              	 
	 	 	
                By: 

              	
                /s/
                  David Blaskey 

              	 
	 	 	
                Name:

                Title:
                  

              	
                David
                  Blaskey 

                Senior
                  Vice President

              	 

      

      
         

        Signature
          Page to Indenture in respect of Senior Notes

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    

      
        	 	 	 	
                THE
                  BANK OF NOVA SCOTIA TRUST COMPANY OF NEW YORK, as Trustee

              	 
	 	 	
                By: 

              	
                /s/
                  John F. Neylan 

              	 
	 	 	
                 

              	
                Authorized
                  Officer

              	 

      

      

    

    
      Signature
        Page to Indenture in respect of Senior Notes

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

     

    Form
      of
      Initial Floating Rate Note1  

    

     

    AVIS
      BUDGET CAR RENTAL, LLC

    AVIS
      BUDGET FINANCE, INC.

     

    

     

    Floating
      Rate Senior Notes due 2014

     

    CUSIP
      No.
      _______________        
      No.
      ___

     

    $______________

     

    Avis
      Budget Car Rental, LLC, a limited liability company duly organized and existing
      under the laws of the State of Delaware, and Avis Budget Finance, Inc., a
      corporation duly organized and existing under the laws of the State of Delaware
      (together, “the Company,”
which
      term includes their successors and assigns), promise to pay to ___________,
      or
      registered assigns, the principal sum of $__________________
      ([                                 ]
      United States Dollars) [(or such lesser or greater amount as shall be
      outstanding hereunder from time to time in accordance with Sections 312 and
      313
      of the Indenture referred to herein)]2
      (the
“Principal
      Amount”)
      on May
      15, 2014. The Company promises to pay interest quarterly in cash on February
      15,
      May 15, August 15 and November 15 of each year, commencing August 15, 2006,
      at
      the rate, reset quarterly, of LIBOR plus 2.5% per annum, as determined by the
      calculation agent (the “Calculation Agent”), which shall initially be the
      Trustee (subject to adjustment as provided below)3,
      until
      the Principal Amount is paid or made available for payment. [Interest on this
      Note will accrue from the most recent date to which interest on this Note or
      any
      of its Predecessor Notes has been paid or duly provided for or, if no interest
      has been paid, from the Issue Date.]4[Interest
      on this Note will accrue (or will be deemed to have accrued) from the most
      recent date to which interest on this Note or any of its Predecessor Notes
      has
      been paid or duly provided for or, if no such interest has been paid,
      from_________, ______.5]6
      Interest on the Notes shall be computed on the basis of a 360-day year for
      the
      actual number of days elapsed. The interest so payable, and punctually paid
      or
      duly provided for, on any Interest Payment Date will, as provided in such
      Indenture, be paid to the Person in whose name this Note (or one or more
      Predecessor Notes) is registered at the close of business on the Regular Record
      Date for such interest, which shall be the February 1, May 1, August 1 or
      November 1 (whether or not a Business Day), as the case may be, next preceding
      such Interest Payment Date. Any such interest not so punctually paid or duly
      provided for will forthwith cease to be payable to the Holder on such Regular
      Record Date and may either be paid to the Person in whose name this Note (or
      one
      or more Predecessor Notes) is registered at the close of business on a Special
      

     

     

    
      
        
          
            

          

           

        

        1 Insert
          any applicable legends from Article II.

        2 Include
          only if the Note is issued in global form.

        3  Include
          only for Initial Note.

        4 Include
          only for Original Notes.

        5 Insert
          the Interest Payment Date immediately preceding the date of issuance of
          the
          applicable Additional Notes, or if the date of issuance of such Additional
          Notes
          is an Interest Payment Date, such date of issuance.

        6
          Include
          only for Additional Notes.

      

    

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

    Record
      Date for the payment of such Defaulted Interest to be fixed by the Trustee,
      notice whereof shall be given to Holders of Notes not more than 15 days nor
      less
      than 10 days prior to such Special Record Date, or be paid at any time in any
      other lawful manner not inconsistent with the requirements of any securities
      exchange on which the Notes may be listed, and upon such notice as may be
      required by such exchange, all as more fully provided in said
      Indenture.

     

    The
      amount of interest for each day that the Notes are outstanding (the "Daily
      Interest Amount") will be calculated by dividing the interest rate in effect
      for
      such day by 360 and multiplying the result by the principal amount of the Notes
      then outstanding. The amount of interest to be paid on the Notes for each
      Interest Period will be calculated by adding the Daily Interest Amount for
      each
      day in the Interest Period. All percentages resulting from any of the above
      calculations will be rounded, if necessary, to the nearest one hundred
      thousandth of a percentage point, with five one-millionths of a percentage
      point
      being rounded upwards and all dollar amounts used in or resulting from such
      calculations will be rounded to the nearest cent (with one-half cent being
      rounded upwards).

     

       The
      Calculation Agent will, upon the request of any Holder of the Notes, provide
      the
      interest rate then in effect with respect to the Notes. All calculations made
      by
      the Calculation Agent in the absence of manifest error will be conclusive for
      all purposes and binding on the Company, the Guarantors and the Holders of
      the
      Notes.

     

    [The
      Holder of this Note is entitled to the benefits of the Registration Rights
      Agreement, dated April 19, 2006, among the Company, the Guarantors and the
      initial purchasers named therein (the “Registration
      Rights Agreement”).
      Until
      (i) this Note has been exchanged for an Exchange Security (as defined in the
      Registration Rights Agreement) in an Exchange Offer (as defined in the
      Registration Rights Agreement); (ii) a Shelf Registration Statement (as defined
      in the Registration Rights Agreement) registering this Note under the Securities
      Act has been declared or becomes effective and this Note has been sold or
      otherwise transferred by the Holder thereof pursuant to and in a manner
      contemplated by such effective Shelf Registration Statement; (iii) this Note
      is
      sold pursuant to Rule 144 under circumstances in which any legend borne by
      this
      Note relating to restrictions on transferability thereof, under the Securities
      Act or otherwise, is removed by the Company or pursuant to the Indenture
      referred to herein; or (iv) this Note is eligible to be sold pursuant to
      paragraph (k) of Rule 144: From and including the date on which a Registration
      Default (as defined below) shall occur to but excluding the date on which such
      Registration Default has been cured, additional interest will accrue on this
      Note until such time as all Registration Defaults have been cured at the rate
      of
      (a) prior to the 91st day of such period (for so long as such period is
      continuing), 0.25% per annum and (b) thereafter (so long as such period is
      continuing), 0.50% per annum. Any such additional interest shall not exceed
      such
      respective rates for such respective periods, and shall not in any event exceed
      0.50% per annum in the aggregate, regardless of the number of Registration
      Defaults that shall have occurred and be continuing. Any such additional
      interest shall be paid in the same manner and on the same dates as interest
      payments in respect of this Note. Following the cure of all Registration
      Defaults, the accrual of such additional interest will cease. A Registration
      Default under clause (iii) or (iv) below will be deemed cured upon consummation
      of the Exchange Offer in the case of a Shelf Registration Statement required
      to
      be filed due to a failure to consummate the Exchange Offer within the required
      time period. For purposes of the foregoing, each of the following events, as
      more particularly defined in the Registration Rights Agreement, is a
“Registration
      

     

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

    

     

    Default”:
      (i)
      the Exchange Offer has not been consummated within 405 days after the Issue
      Date; (ii) if a Shelf Registration Statement required by the Registration Rights
      Agreement is not declared effective by the SEC on or before the later of (1)
      405
      days after the Issue Date or (2) 90 days after the delivery of a request to
      file
      a Registration Statement as provided for in the Registration Rights Agreement;
      or (iii)
      if
      any Shelf Registration Statement required by the Registration Rights Agreement
      is filed and declared effective, and during the period the Company is required
      to use its reasonable best efforts to cause the Shelf Registration Statement
      to
      remain effective, the Company shall have suspended the Shelf Registration
      Statement or it ceases to be effective for more than 75 days in any twelve-month
      period and be continuing to suspend the availability of the Shelf Registration
      Statement.]7  8

     

    Payment
      of the principal of (and premium, if any) and interest on this Note will be
      made
      at the office of the applicable Paying Agent, or such other office or agency
      of
      the Company maintained for that purpose; provided,
      however,
      that at
      the option of the Company payment of interest may be made by check mailed to
      the
      address of the Person entitled thereto as such address shall appear in the
      Note
      Register.

     

    Reference
      is hereby made to the further provisions of this Note set forth on the attached
      Additional Terms of the Notes, which further provisions shall for all purposes
      have the same effect as if set forth at this place.

     

    Unless
      the certificate of authentication hereon has been executed by the Trustee
      referred to herein by manual signature, this Note shall not be entitled to
      any
      benefit under the Indenture or be valid or obligatory for any
      purpose.

    

      
        

      

    

    
      
         

      

      7  Include
        only for Initial Note when required by the Registration Rights
        Agreement.

      8 
        For an Initial Additional Note, add any similar provision, if any, as may
        be
        agreed by the Company with respect to additional interest on such Initial
        Additional Note.

       

    

     

    
      
        
        

      

      
        A-3

        
          

        

      

      
        
        

      

    

    

    

    IN
      WITNESS WHEREOF, the Company has caused this instrument to be duly
      executed.

    

      
        	 	 	 	
                AVIS
                  BUDGET CAR RENTAL, LLC

                AVIS
                  BUDGET FINANCE, INC.

              	 
	 	 	
                By: 

              	
                /s/
                  David B. Wyshner

              	 
	 	 	
                Name:

                Title:
                  

              	
                David
                  B. Wyshner 

                Executive
                  Vice President, Chief Financial Officer and Treasurer

              	 

      

    

     

    

    
      
        
        

      

      
        A-4

        
          

        

      

      
        
        

      

    

    

    This
      is
      one of the Notes referred to in the within-mentioned Indenture.

     

    
      
        	 	 	 	
                THE
                  BANK OF NOVA SCOTIA TRUST COMPANY OF NEW YORK

                As
                  Trustee

              	 
	 	 	
                By:

              	
                Authorized
                  officer

              	 
	
                 

                Dated:

                 

              	 	 	 	 

      

    

     

     

    
      
        
        

      

      
        A-5

        
          

        

      

      
        
        

      

    

    Additional
      Terms of the Notes

     

    This
      Note
      is one of the duly authorized issue of Floating Rate Senior Notes due 2014
      of
      the Company (herein called the “Notes”),
      issued under an Indenture, dated as of April 19, 2006 (herein called the
“Indenture,”
which
      term shall have the meanings assigned to it in such instrument), among the
      Company, the Guarantors from time to time parties thereto (“the Guarantors”)
      and
      The Bank of Nova Scotia Trust Company of New York, as Trustee (herein called
      the
“Trustee,”
which
      term includes any successor trustee under the Indenture), and reference is
      hereby made to the Indenture for a statement of the respective rights,
      limitations of rights, duties and immunities thereunder of the Company, any
      other obligor upon this Note, the Trustee and the Holders of the Notes and
      of
      the terms upon which the Notes are, and are to be, authenticated and delivered.
      The terms of the Notes include those stated in the Indenture and those made
      a
      part of the Indenture by reference to the Trust Indenture Act of 1939, as
      amended, as in effect from time to time (the “TIA”).
      The
      Notes are subject to all such terms, and Holders are referred to the Indenture
      and the TIA for a statement of such terms. Additional Notes may be issued under
      the Indenture which will vote as a class with the Notes and otherwise be treated
      as Notes for purposes of the Indenture.

     

    All
      terms
      used in this Note that are defined in the Indenture shall have the meanings
      assigned to them in the Indenture.

     

    This
      Note
      may hereafter be entitled to certain other Guarantees made for the benefit
      of
      the Holders. Reference is made to Article XIII of the Indenture for terms
      relating to such Guarantees, including the release, termination and discharge
      thereof. Neither the Company nor any Guarantor shall be required to make any
      notation on this Note to reflect any Guarantee or any such release, termination
      or discharge.

     

    The
      Notes
      will be redeemable, at the Company’s option, in whole or in part, at any time
      and from time to time on and after May 15, 2008, and prior to maturity at the
      applicable redemption price set forth below. Such redemption may be made upon
      notice mailed by first-class mail to each Holder’s registered address in
      accordance with the Indenture. The Company may provide in such notice that
      payment of the redemption price and the performance of the Company’s obligations
      with respect to such redemption may be performed by another Person. Any such
      redemption and notice may, in the Company’s discretion, be subject to the
      satisfaction of one or more conditions precedent, including but not limited
      to
      the occurrence of a Change of Control. The Notes will be so redeemable at the
      following redemption prices (expressed as a percentage of principal amount),
      plus accrued and unpaid interest, if any, to the relevant Redemption Date
      (subject to the right of Holders of record on the relevant Regular Record Date
      to receive interest due on the relevant Interest Payment Date), if redeemed
      during the 12-month period commencing on May 15 of the years set forth
      below:

     

    
      	
              Period

            	
              Redemption
                Price

            
	
              2008

            	
              103.000%

            
	
              2009

            	
              102.000%

            
	
              2010

            	
              101.000%

            
	
              2011
                and thereafter

            	
              100.000%

            
	 	 

    

     

     

    
      
        
        

      

      
        A-6

        
          

        

      

      
        
        

      

    

    In
      addition, at any time and from time to time on or prior to May 15, 2008, the
      Company at its option may redeem Notes in an aggregate principal amount equal
      to
      up to 35% of the original aggregate principal amount of Notes (including the
      principal amount of any Additional Notes), with funds in an aggregate amount
      not
      exceeding the aggregate proceeds of one or more Equity Offerings, at a
      redemption price (expressed as a percentage of principal amount thereof) of
      100%
      plus the applicable rate of interest per annum on the date on which notice
      of
      redemption is given, plus accrued and unpaid interest, if any, to, but not
      including, the Redemption Date (subject to the right of Holders of record on
      the
      relevant Record Date to receive interest due on the relevant Interest Payment
      Date); provided,
      however,
      that an
      aggregate principal amount of Notes equal to at least 65% of the original
      aggregate principal amount of Notes (including the principal amount of any
      Additional Notes) must remain outstanding after each such redemption. The
      Company may make such redemption upon notice mailed by first-class mail to
      each
      Holder’s registered address in accordance with the Indenture (but in no event
      more than 180 days after the completion of the related Equity Offering). The
      Company may provide in such notice that payment of the redemption price and
      performance of the Company’s obligations with respect to such redemption may be
      performed by another Person. Any such notice may be given prior to the
      completion of the related Equity Offering, and any such redemption or notice
      may, at the Company’s discretion, be subject to the satisfaction of one or more
      conditions precedent, including the completion of the related Equity
      Offering.

     

    At
      any
      time prior to May 15, 2008, Notes may also be redeemed or purchased (by the
      Company or any other Person) in whole or in part, at the Company’s option, at a
      price equal to 100% of the principal amount thereof plus the Applicable Premium
      as of, and accrued but unpaid interest, if any, to, but not including, the
      Redemption Date (subject to the right of Holders of record on the relevant
      Record Date to receive interest due on the relevant Interest Payment Date).
      Such
      redemption or purchase may be made upon notice mailed by first-class mail to
      each Holder’s registered address in accordance with the Indenture. The Company
      may provide in such notice that payment of the Redemption Price and performance
      of the Company’s obligations with respect to such redemption or purchase may be
      performed by another Person. Any such redemption, purchase or notice may, at
      the
      Company’s discretion, be subject to the satisfaction of one or more conditions
      precedent, including but not limited to the occurrence of a Change of
      Control.

     

    The
      Indenture provides that, upon the occurrence after the Issue Date of a Change
      of
      Control, each Holder will have the right to require that the Company repurchase
      all or any part of such Holder’s Notes at a purchase price in cash equal to 101%
      of the principal amount thereof plus accrued and unpaid interest, if any, to,
      but not including, the date of such repurchase (subject to the right of Holders
      of record on the relevant Record Date to receive interest due on the relevant
      Interest Payment Date); provided,
      however,
      that
      the Company shall not be obligated to repurchase Notes in the event it has
      exercised its right to redeem all the Notes as described above.

     

    The
      Notes
      will not be entitled to the benefit of a sinking fund.

     

    The
      Indenture contains provisions for defeasance at any time of the entire
      Indebtedness of this Note or certain restrictive covenants and certain Events
      of
      Default with 

     

    
      
        
        

      

      
        A-7

        
          

        

      

      
        
        

      

    

    respect
      to this Note, in each case upon compliance with certain conditions set forth
      in
      the Indenture.

     

    If
      an
      Event of Default with respect to the Notes shall occur and be continuing, the
      principal of and accrued but unpaid interest on the Notes may be declared due
      and payable in the manner and with the effect provided in the
      Indenture.

     

    The
      Indenture permits, with certain exceptions as therein provided, the amendment
      thereof and the modification of the rights and obligations of the Company and
      the rights of the Holders of the Notes to be effected under the Indenture at
      any
      time by the Company and the Trustee with the consent of the Holders of at least
      a majority in principal amount of the Notes at the time Outstanding to be
      affected. The Indenture also contains provisions permitting the Holders of
      specified percentages in principal amount of the Notes at the time Outstanding,
      on behalf of the Holders of all Notes, to waive compliance by the Company with
      certain provisions of the Indenture and certain past defaults under the
      Indenture and their consequences. Any such consent or waiver by the Holder
      of
      this Note shall be conclusive and binding upon such Holder and upon all future
      Holders of this Note and of any Note issued upon the registration of transfer
      hereof or in exchange herefor or in lieu hereof, whether or not notation of
      such
      consent or waiver is made upon this Note.

     

    As
      provided in and subject to the provisions of the Indenture, the Holder of this
      Note shall not have the right to institute any proceeding with respect to the
      Indenture or for the appointment of a receiver or trustee or for any other
      remedy thereunder, unless such Holder shall have previously given the Trustee
      written notice of a continuing Event of Default with respect to the Notes,
      the
      Holders of not less than 30% in principal amount of the Notes at the time
      Outstanding shall have made written request to the Trustee to pursue such remedy
      in respect of such Event of Default as Trustee and offered the Trustee
      reasonable security or indemnity against any loss, liability or expense, and
      the
      Trustee shall not have received from the Holders of a majority in principal
      amount of Notes at the time Outstanding a direction inconsistent with such
      request, and shall have failed to institute any such proceeding, for 60 days
      after receipt of such notice, request and offer of security or indemnity. The
      foregoing shall not apply to any suit instituted by the Holder of this Note
      for
      the enforcement of any payment of principal hereof or any premium or interest
      hereon on or after the respective due dates expressed herein.

     

    No
      reference herein to the Indenture and no provision of this Note or of the
      Indenture shall alter or impair the obligation of the Company, which is absolute
      and unconditional, to pay the principal of and any premium and interest on
      this
      Note at the times, place and rate, and in the coin or currency, herein
      prescribed.

     

    As
      provided in the Indenture and subject to certain limitations therein set forth,
      the transfer of this Note is registrable in the Note Register, upon surrender
      of
      this Note for registration of transfer at the office or agency of the Company
      in
      a Place of Payment, duly endorsed by, or accompanied by a written instrument
      of
      transfer in form satisfactory to the Company and the Note Registrar duly
      executed by, the Holder hereof or such Holder’s attorney duly authorized in
      writing, and thereupon one or more new Notes of like tenor, of authorized
      denominations and for the same aggregate principal amount, will be issued to
      the
      designated transferee or transferees.

     

    
      
        
        

      

      
        A-8

        
          

        

      

      
        
        

      

    

    The
      Notes
      are issuable only in fully registered form without coupons in minimum
      denominations of $2,000 and any integral multiple of $1,000 in excess thereof.
      As provided in the Indenture and subject to certain limitations therein set
      forth, the Notes are exchangeable for a like aggregate principal amount of
      Notes
      of like tenor of a different authorized denomination, as requested by the Holder
      surrendering the same.

     

    No
      service charge shall be made for any such registration, transfer or exchange,
      but the Company may require payment of a sum sufficient to cover any transfer
      tax or other governmental charge payable in connection therewith.

     

    Prior
      to
      due presentment of this Note for registration or transfer, the Company, any
      other obligor in respect of this Note, the Trustee and any agent of the Company,
      such other obligor or the Trustee may treat the Person in whose name this Note
      is registered as the owner hereof for all purposes, whether or not this Note
      be
      overdue, and none of the Company, any other obligor upon this Note, the Trustee
      nor any such agent shall be affected by notice to the contrary.

     

    No
      director, officer, employee, incorporator, equity holder, member or stockholder,
      as such, of the Company, any Guarantor or any Subsidiary of any thereof shall
      have any liability for any obligation of the Company or any Guarantor under
      the
      Indenture, the Notes or any Guarantee, or for any claim based on, in respect
      of,
      or by reason of, any such obligation or its creation. Each Holder, by accepting
      this Note, hereby waives and releases all such liability. The waiver and release
      are part of the consideration for issuance of the Notes.

     

    THE
      INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
      THE LAWS OF THE STATE OF NEW YORK. THE TRUSTEE, THE COMPANY, ANY OTHER OBLIGOR
      IN RESPECT OF THE NOTES AND (BY THEIR ACCEPTANCE OF THE NOTES) THE HOLDERS,
      AGREE TO SUBMIT TO THE JURISDICTION OF ANY UNITED STATES FEDERAL OR STATE COURT
      LOCATED IN THE BOROUGH OF MANHATTAN, IN THE CITY OF NEW YORK IN ANY ACTION
      OR
      PROCEEDING ARISING OUT OF OR RELATING TO THE INDENTURE, THE NOTES OR THE
      GUARANTEES.

     

    
      
        
        

      

      
        A-9

        
          

        

      

      
        
        

      

    

     

     

    
 

    GUARANTEE

     

    For
      value
      received, the undersigned hereby unconditionally guarantees, as principal
      obligor and not only as a surety, to the Holder of this Note the cash payments
      in United States dollars of principal of, premium, if any, and interest on
      this
      Note (and including Additional Interest payable thereon) in the amounts and
      at
      the times when due and interest on the overdue principal, premium, if any,
      and
      interest, if any, of this Note, if lawful, and the payment or performance of
      all
      other Obligations of the Company under the Indenture (as defined below) or
      the
      Note, to the Holder of this Note and the Trustee, all in accordance with and
      subject to the terms and limitations of this Note, Article XIII of the Indenture
      and this Guarantee. This Guarantee will become effective in accordance with
      Article XIII of the Indenture and its terms shall be evidenced therein. The
      validity and enforceability of this Guarantee shall not be affected by the
      fact
      that it is not affixed to any particular Note.

     

    Capitalized
      terms used but not defined herein shall have the meanings ascribed to them
      in
      the Indenture, dated as of April 19, 2006, among Avis Budget Car Rental, LLC,
      a
      Delaware limited liability company, and Avis Budget Finance, Inc., a Delaware
      corporation (together, “the Company”), the Guarantors from time to time parties
      thereto and The Bank of Nova Scotia Trust Company of New York, as Trustee.
      

     

    THIS
      GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
      THE
      STATE OF NEW YORK. EACH GUARANTOR HEREBY AGREES TO SUBMIT TO THE JURISDICTION
      OF
      ANY UNITED STATES FEDERAL OR STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN,
      IN
      THE CITY OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING
      TO
      THIS GUARANTEE.

     

    This
      Guarantee is subject to release upon the terms set forth 
      in the
      Indenture.

     

    

    
      
        
        

      

      
        A-10

        
          

        

      

      
        
        

      

    

    

    

    
      	 	 	 	
              AVIS
                BUDGET HOLDINGS, LLC

               

            	 
	 	 	
              By: 

            	 	 
	 	 	
              Name:

              Title:
                

            	
              David
                B. Wyshner

              Executive
                Vice President, Chief Financial Officer

              and
                Treasurer

            	 

    

    

    

    
      	 	 	 	
              AVIS
                ASIA AND PACIFIC, LIMITED

              AVIS
                CAR RENTAL GROUP, LLC

              AVIS
                CARIBBEAN, LIMITED

              AVIS
                ENTERPRISES, INC.

              AVIS
                GROUP HOLDINGS, LLC

              AVIS
                INTERNATIONAL, LTD.

              AVIS
                LEASING CORPORATION

              AVIS
                RENT A CAR SYSTEM, LLC

              PF
                CLAIMS MANAGEMENT, LTD.

               

            	 
	 	 	
              By: 

            	 	 
	 	 	
              Name:

              Title:
                

            	
              David
                B. Wyshner

              Chief
                Financial Officer

            	 

    

    

     

    
      	 	 	 	
              CENDANT
                CAR RENTAL OPERATIONS SUPPORT, INC.

              WIZARD
                CO., INC.

               

            	 
	 	 	
              By: 

            	 	 
	 	 	
              Name:

              Title:
                

            	
              David
                B. Wyshner

              Treasurer

            	 

    

          

     

    
      	 	 	 	
              ARACS
                LLC

              AVIS
                OPERATIONS, LLC

               

            	 
	 	 	
              By: 

            	 	 
	 	 	
              Name:

              Title:
                

            	
              Robert
                E. Muhs

              Vice
                President and Assistant Secretary

            	 

    

     

     

    

    
      	 	 	 	
              BGI
                LEASING, INC.

              BUDGET
                RENT A CAR SYSTEM, INC.

               

            	 
	 	 	
              By: 

            	 	 
	 	 	
              Name:

              Title:
                

            	
              David
                Blaskey

              President

            	 

    

     

     

    

    
      
        
          
          

        

        
          A-11

          
            

          

        

        
          
          

        

      

    

     

    

      
        	 	 	 	
                BUDGET
                  TRUCK RENTAL LLC 

              	 
	 	 	
                By: 

              	 	 
	 	 	
                Name:

                Title:
                  

              	
                David
                  Blaskey

                Senior
                  Vice President

              	 

      

    

    

     

     

    
      
        
        

      

      
        A-12

        
          

        

      

      
        
        

      

    

     

     

    [FORM
      OF
      CERTIFICATE OF TRANSFER]

     

    FOR
      VALUE
      RECEIVED the undersigned Holder hereby sell(s), assign(s) and transfer(s)
      unto

     

     

    Insert
      Taxpayer Identification No.

     

     

    (Please
      print or typewrite name and address including zip code of assignee)

     

     

      
        

      

    

     

      
        

      

    

     

     

    the
      within Note and all rights thereunder, hereby irrevocably constituting and
      appointing

     

     

    
      

    

     

    attorney
      to transfer such Note on the books of the Company with full power of
      substitution in the premises.

     

    Check
      One

     

    [  ]
      (a) this
      Note
      is being transferred in compliance with the exemption from registration under
      the Securities Act of 1933, as amended, provided by Rule 144A
      thereunder.

     

    or

     

    [  ]
      (b) this
      Note
      is being transferred other than in accordance with (a) above and documents
      are
      being furnished which comply with the conditions of transfer set forth in this
      Note and the Indenture.

     

    If
      neither of the foregoing boxes is checked, the Trustee or other Note Registrar
      shall not be obligated to register this Note in the name of any Person other
      than the Holder hereof unless and until the conditions to any such transfer
      of
      registration set forth herein and in Section 313 of the Indenture shall have
      been satisfied.

     

    Date: 
      
        

      

    

     

    

    
      
        
        

      

      
        A-13

        
          

        

      

      
        
        

      

    

    

    NOTICE:
      The signature to this assignment must correspond with the name as written upon
      the face of the within-mentioned instrument in every particular, without
      alteration or any change whatsoever.

     

     

    Signature
      Guarantee:  

      

    

     

    Signatures
      must be guaranteed by an “eligible guarantor institution” meeting the
      requirements of the Note Registrar, which requirements include membership or
      participation in the Security Transfer Agent Medallion Program (“STAMP”)
      or
      such other “signature guarantee program” as may be determined by the Note
      Registrar in addition to, or in substitution for, STAMP, all in accordance
      with
      the Securities Exchange Act of 1934, as amended.

     

     

    
      
        
        

      

      
        A-14

        
          

        

      

      
        
        

      

    

    

    

    TO
      BE
      COMPLETED BY PURCHASER IF (a) ABOVE IS CHECKED.

     

    The
      undersigned represents and warrants that it is purchasing this Note for its
      own
      account or an account with respect to which it exercises sole investment
      discretion and that it and any such account is a “qualified institutional buyer”
within the meaning of Rule 144A under the Securities Act of 1933, as amended,
      and is aware that the sale to it is being made in reliance on Rule 144A and
      acknowledges that it has received such information regarding the Company as
      the
      undersigned has requested pursuant to Rule 144A or has determined not to request
      such information and that it is aware that the transferor is relying upon the
      undersigned’s foregoing representations in order to claim the exemption from
      registration provided by Rule 144A. 

     

     

    Date: 
      
        

      

    

     

    

    NOTICE: 
To
      be executed by an executive
      officer

     

    
       

      
        
          
          

        

        
          A-15

          
            

          

        

        
          
          

        

      

      

         

      

    

    

    OPTION
      OF
      HOLDER TO ELECT PURCHASE

     

    If
      you
      wish to have this Note purchased by the Company pursuant to Section 411 or
      415
      of the Indenture, check the box: [  ].

     

    If
      you
      wish to have a portion of this Note purchased by the Company pursuant to Section
      411 or 415 of the Indenture, state the amount (in principal amount)
      below:

     

    $________________

     

     

    Date: 
      
        

      

    

     

    Your
      Signature: 

    
      
 

    (Sign
      exactly as your name appears on the other side of this Note)

     

    Signature
      Guarantee: 

    
      
 

    Signatures
      must be guaranteed by an “eligible guarantor institution” meeting the
      requirements of the Note Registrar, which requirements include membership or
      participation in the Security Transfer Agent Medallion Program (“STAMP”)
      or
      such other “signature guarantee program” as may be determined by the Note
      Registrar in addition to, or in substitution for, STAMP, all in accordance
      with
      the Securities Exchange Act of 1934, as amended.

     

    

    

    
      
        
        

      

      
        A-16

        
          

        

      

      
        
        

      

    

    SCHEDULE
      OF INCREASES OR DECREASES IN GLOBAL NOTE

     

    The
      following increases or decreases in this Global Note have been
      made:

     

    
      	
              Date
                of Exchange 

            	
              Amount
                of decreases in Principal Amount of this Global Note

            	
              Amount
                of increases in Principal Amount of this Global Note

            	
              Principal
                amount of this Global Note following such decreases or
                increases

            	
              Signature
                of authorized officer of Trustee or Notes Custodian

            
	 	 	 	 	 

    

    

     

    

     

    
      
        
        

      

      
        A-17

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      B

     

    Form
      of
      Initial 7.625% Note9  

     

    AVIS
      BUDGET CAR RENTAL, LLC

     

    AVIS
      BUDGET FINANCE, INC.

     

    

     

    7.625%
      Senior Notes due 2014

     

    CUSIP
      No.
      _______________        
      No.
      ___

     

    $______________

     

    Avis
      Budget Car Rental, LLC, a limited liability company duly organized and existing
      under the laws of the State of Delaware, and Avis Budget Finance, Inc., a
      corporation duly organized and existing under the laws of the State of Delaware
      (together, “the Company,”
which
      term includes their successors and assigns), promise to pay to ___________,
      or
      registered assigns, the principal sum of $________________
      ([                                  ]
      United States Dollars) [(or such lesser or greater amount as shall be
      outstanding hereunder from time to time in accordance with Sections 312 and
      313
      of the Indenture referred to herein)]10  
      (the
“Principal
      Amount”)
      on May
      15, 2014. The Company promises to pay interest semi-annually in cash on May
      15
      and November 15 of each year, commencing November 15, 2006, at the rate of
      7.625% per annum (subject to adjustment as provided below)11   
      until
      the Principal Amount is paid or made available for payment. [Interest on this
      Note will accrue from the most recent date to which interest on this Note or
      any
      of its Predecessor Notes has been paid or duly provided for or, if no interest
      has been paid, from the Issue Date.]12 [Interest
      on this Note will accrue (or will be deemed to have accrued) from the most
      recent date to which interest on this Note or any of its Predecessor Notes
      has
      been paid or duly provided for or, if no such interest has been paid, from
      ______, ______13.]14  Interest
      on the Notes shall be computed on the basis of a 360-day year of twelve 30-day
      months. The interest so payable, and punctually paid or duly provided for,
      on
      any Interest Payment Date will, as provided in such Indenture, be paid to the
      Person in whose name this Note (or one or more Predecessor Notes) is registered
      at the close of business on the Regular Record Date for such interest, which
      shall be the May 1 or November 1 (whether or not a Business Day), as the case
      may be, next preceding such Interest Payment Date. Any such interest not so
      punctually paid or duly provided for will forthwith cease to be payable to
      the
      Holder on such Regular Record Date and may either be paid to the Person in
      whose
      name this Note (or one or more Predecessor Notes) is registered at the close
      of
      business on a Special Record Date for the payment of such Defaulted Interest
      to
      be fixed by the Trustee, notice whereof shall be given to Holders of Notes
      not
      more than 15 days nor less than 10 days prior to 

     

    
      
 9 Insert
      any applicable legends from Article II.
      10  Include
        only if the Note is issued in global form.

      11  Include
        only for Initial Note.

      12  Include
        only for Original Notes.

      13 Insert
        the Interest Payment Date immediately preceding the date of issuance of the
        applicable Additional Notes, or if the date of issuance of such Additional
        Notes
        is an Interest Payment Date, such date of issuance.

      14
        Include
        only for Additional Notes.

    

     

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

    such
      Special Record Date, or be paid at any time in
      any other lawful manner not inconsistent with the requirements of any securities
      exchange on which the Notes may be listed, and upon such notice as may be
      required by such exchange, all as more fully provided in said
      Indenture.

     

    [The
      Holder of this Note is entitled to the benefits of the Registration Rights
      Agreement, dated April 19, 2006, among the Company, the Guarantors and the
      initial purchasers named therein (the “Registration
      Rights Agreement”).
      Until
      (i) this Note has been exchanged for an Exchange Security (as defined in the
      Registration Rights Agreement) in an Exchange Offer (as defined in the
      Registration Rights Agreement); (ii) a Shelf Registration Statement (as defined
      in the Registration Rights Agreement) registering this Note under the Securities
      Act has been declared or becomes effective and this Note has been sold or
      otherwise transferred by the Holder thereof pursuant to and in a manner
      contemplated by such effective Shelf Registration Statement; (iii) this Note
      is
      sold pursuant to Rule 144 under circumstances in which any legend borne by
      this
      Note relating to restrictions on transferability thereof, under the Securities
      Act or otherwise, is removed by the Company or pursuant to the Indenture
      referred to herein; or (iv) this Note is eligible to be sold pursuant to
      paragraph (k) of Rule 144: From and including the date on which a Registration
      Default (as defined below) shall occur to but excluding the date on which such
      Registration Default has been cured, additional interest will accrue on this
      Note until such time as all Registration Defaults have been cured at the rate
      of
      (a) prior to the 91st day of such period (for so long as such period is
      continuing), 0.25% per annum and (b) thereafter (so long as such period is
      continuing), 0.50% per annum. Any such additional interest shall not exceed
      such
      respective rates for such respective periods, and shall not in any event exceed
      0.50% per annum in the aggregate, regardless of the number of Registration
      Defaults that shall have occurred and be continuing. Any such additional
      interest shall be paid in the same manner and on the same dates as interest
      payments in respect of this Note. Following the cure of all Registration
      Defaults, the accrual of such additional interest will cease. A Registration
      Default under clause (iii) or (iv) below will be deemed cured upon consummation
      of the Exchange Offer in the case of a Shelf Registration Statement required
      to
      be filed due to a failure to consummate the Exchange Offer within the required
      time period. For purposes of the foregoing, each of the following events, as
      more particularly defined in the Registration Rights Agreement, is a
“Registration
      Default”:
      (i)
      the Exchange Offer has not been consummated within 405 days after the Issue
      Date; (ii) if a Shelf Registration Statement required by the Registration Rights
      Agreement is not declared effective by the SEC on or before the later of (1)
      405
      days after the Issue Date or (2) 90 days after the delivery of a request to
      file
      a Registration Statement as provided for in the Registration Rights Agreement;
      or (iii) if
      any
      Shelf Registration Statement required by the Registration Rights Agreement
      is
      filed and declared effective, and during the period the Company is required
      to
      use its reasonable best efforts to cause the Shelf Registration Statement to
      remain effective, the Company shall have suspended the Shelf Registration
      Statement or it ceases to be effective for more than 75 days in any twelve-month
      period and be continuing to suspend the availability of the Shelf Registration
      Statement.]15  16   

     

     

    
      

      15  Include
        only for Initial Note when required by the Registration Rights
        Agreement.

      16  For
        an
        Initial Additional Note, add any similar provision, if any, as may be agreed
        by
        the Company with respect to additional interest on such Initial Additional
        Note.

    

     

     

    
      
        
        

      

      
        B-2

        
          

        

      

      
        
        

      

    

     

    
      Payment
        of the principal of (and premium, if any) and interest on this Note will
        be made
        at the office of the applicable Paying Agent, or such other office or agency
        of
        the Company maintained for that purpose; provided,
        however,
        that at
        the option of the Company payment of interest may be made by check mailed
        to the
        address of the Person entitled thereto as such address shall appear in the
        Note
        Register.

       

      Reference
        is hereby made to the further provisions of this Note set forth on the attached
        Additional Terms of the Notes, which further provisions shall for all purposes
        have the same effect as if set forth at this place.

       

      Unless
        the certificate of authentication hereon has been executed by the Trustee
        referred to herein by manual signature, this Note shall not be entitled to
        any
        benefit under the Indenture or be valid or obligatory for any
        purpose.

    

    
 

    
      
        
        

      

      
        B-3

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Company has caused this instrument to be duly
      executed.

     

    

      
        	 	 	 	
                AVIS
                  BUDGET CAR RENTAL, LLC

                AVIS
                  BUDGET FINANCE, INC.

              	 
	 	 	
                By: 

              	 	 
	 	 	
                Name:

                Title:
                  

              	
                David
                  B. Wyshner

                Executive
                  Vice President, Chief Financial Officer

                and
                  Treasurer

              	 

      

    

     

    
 

    
      
        
        

      

      
        B-4

        
          

        

      

      
        
        

      

    

    

     

    This
      is
      one of the Notes referred to in the within-mentioned Indenture.

     

    

      
        	 	 	 	
                THE
                  BANK OF NOVA SCOTIA TRUST COMPANY OF NEW YORK 

                As
                  Trustee

              	 
	 	 	
                By: 

              	 	 
	 	 	
                 

              	
                Authorized
                  officer

              	 
	
                 

                Dated:

                 

              	 	 	 	 

      

       

       

      
        
          
          

        

        
          B-5

          
            

          

        

        
          
          

        

      

    

     

    
 

    

    Additional
      Terms of the Notes

     

    This
      Note
      is one of the duly authorized issue of 7.625% Senior Notes due 2014 of the
      Company (herein called the “Notes”),
      issued under an Indenture, dated as of April 19, 2006 (herein called the
“Indenture,”
which
      term shall have the meanings assigned to it in such instrument), among the
      Company, the Guarantors from time to time parties thereto (“the Guarantors”)
      and
      The Bank of Nova Scotia Trust Company of New York, as Trustee (herein called
      the
“Trustee,”
which
      term includes any successor trustee under the Indenture), and reference is
      hereby made to the Indenture for a statement of the respective rights,
      limitations of rights, duties and immunities thereunder of the Company, any
      other obligor upon this Note, the Trustee and the Holders of the Notes and
      of
      the terms upon which the Notes are, and are to be, authenticated and delivered.
      The terms of the Notes include those stated in the Indenture and those made
      a
      part of the Indenture by reference to the Trust Indenture Act of 1939, as
      amended, as in effect from time to time (the “TIA”).
      The
      Notes are subject to all such terms, and Holders are referred to the Indenture
      and the TIA for a statement of such terms. Additional Notes may be issued under
      the Indenture which will vote as a class with the Notes and otherwise be treated
      as Notes for purposes of the Indenture.

     

    All
      terms
      used in this Note that are defined in the Indenture shall have the meanings
      assigned to them in the Indenture.

     

    This
      Note
      may hereafter be entitled to certain other Guarantees made for the benefit
      of
      the Holders. Reference is made to Article XIII of the Indenture for terms
      relating to such Guarantees, including the release, termination and discharge
      thereof. Neither the Company nor any Guarantor shall be required to make any
      notation on this Note to reflect any Guarantee or any such release, termination
      or discharge.

     

    The
      Notes
      will be redeemable, at the Company’s option, in whole or in part, at any time
      and from time to time on and after May 15, 2010, and prior to maturity at the
      applicable redemption price set forth below. Such redemption may be made upon
      notice mailed by first-class mail to each Holder’s registered address in
      accordance with the Indenture. The Company may provide in such notice that
      payment of the redemption price and the performance of the Company’s obligations
      with respect to such redemption may be performed by another Person. Any such
      redemption and notice may, in the Company’s discretion, be subject to the
      satisfaction of one or more conditions precedent, including but not limited
      to
      the occurrence of a Change of Control. The Notes will be so redeemable at the
      following redemption prices (expressed as a percentage of principal amount),
      plus accrued and unpaid interest, if any, to the relevant Redemption Date
      (subject to the right of Holders of record on the relevant Regular Record Date
      to receive interest due on the relevant Interest Payment Date), if redeemed
      during the 12-month period commencing on May 15 of the years set forth
      below:

     

    
      	
              Period

            	
              Redemption
                Price

            
	
              2010

            	
              103.813%

            
	
              2011

            	
              101.906%

            
	
              2012
                and thereafter

            	
              100.000%

            
	 	 

    

     

    
      
        
        

      

      
        B-6

        
          

        

      

      
        
        

      

    

     

    In
      addition, at any time and from time to time on or prior to May 15, 2009, the
      Company at its option may redeem Notes in an aggregate principal amount equal
      to
      up to 35% of the original aggregate principal amount of Notes (including the
      principal amount of any Additional Notes), with funds in an aggregate amount
      not
      exceeding the aggregate proceeds of one or more Equity Offerings, at a
      redemption price (expressed as a percentage of principal amount thereof) of
      107.625%, plus accrued and unpaid interest, if any, to, but not including,
      the
      Redemption Date (subject to the right of Holders of record on the relevant
      Record Date to receive interest due on the relevant Interest Payment Date);
      provided,
      however,
      that an
      aggregate principal amount of Notes equal to at least 65% of the original
      aggregate principal amount of Notes (including the principal amount of any
      Additional Notes) must remain outstanding after each such redemption. The
      Company may make such redemption upon notice mailed by first-class mail to
      each
      Holder’s registered address in accordance with the Indenture (but in no event
      more than 180 days after the completion of the related Equity Offering). The
      Company may provide in such notice that payment of the redemption price and
      performance of the Company’s obligations with respect to such redemption may be
      performed by another Person. Any such notice may be given prior to the
      completion of the related Equity Offering, and any such redemption or notice
      may, at the Company’s discretion, be subject to the satisfaction of one or more
      conditions precedent, including the completion of the related Equity
      Offering.

     

    At
      any
      time prior to May 15, 2010, Notes may also be redeemed or purchased (by the
      Company or any other Person) in whole or in part, at the Company’s option, at a
      price equal to 100% of the principal amount thereof plus the Applicable Premium
      as of, and accrued but unpaid interest, if any, to, but not including, the
      Redemption Date (subject to the right of Holders of record on the relevant
      Record Date to receive interest due on the relevant Interest Payment Date).
      Such
      redemption or purchase may be made upon notice mailed by first-class mail to
      each Holder’s registered address in accordance with the Indenture. The Company
      may provide in such notice that payment of the Redemption Price and performance
      of the Company’s obligations with respect to such redemption or purchase may be
      performed by another Person. Any such redemption, purchase or notice may, at
      the
      Company’s discretion, be subject to the satisfaction of one or more conditions
      precedent, including but not limited to the occurrence of a Change of
      Control.

     

    The
      Indenture provides that, upon the occurrence after the Issue Date of a Change
      of
      Control, each Holder will have the right to require that the Company repurchase
      all or any part of such Holder’s Notes at a purchase price in cash equal to 101%
      of the principal amount thereof plus accrued and unpaid interest, if any, to,
      but not including, the date of such repurchase (subject to the right of Holders
      of record on the relevant Record Date to receive interest due on the relevant
      Interest Payment Date); provided,
      however,
      that
      the Company shall not be obligated to repurchase Notes in the event it has
      exercised its right to redeem all the Notes as described above.

     

    The
      Notes
      will not be entitled to the benefit of a sinking fund.

     

    The
      Indenture contains provisions for defeasance at any time of the entire
      indebtedness of this Note or certain restrictive covenants and certain Events
      of
      Default with respect to this Note, in each case upon compliance with certain
      conditions set forth in the Indenture.

     

    
      
        
        

      

      
        B-7

        
          

        

      

      
        
        

      

    

    If
      an
      Event of Default with respect to the Notes shall occur and be continuing, the
      principal of and accrued but unpaid interest on the Notes may be declared due
      and payable in the manner and with the effect provided in the
      Indenture.

     

    The
      Indenture permits, with certain exceptions as therein provided, the amendment
      thereof and the modification of the rights and obligations of the Company and
      the rights of the Holders of the Notes to be effected under the Indenture at
      any
      time by the Company and the Trustee with the consent of the Holders of at least
      a majority in principal amount of the Notes at the time Outstanding to be
      affected. The Indenture also contains provisions permitting the Holders of
      specified percentages in principal amount of the Notes at the time Outstanding,
      on behalf of the Holders of all Notes, to waive compliance by the Company with
      certain provisions of the Indenture and certain past defaults under the
      Indenture and their consequences. Any such consent or waiver by the Holder
      of
      this Note shall be conclusive and binding upon such Holder and upon all future
      Holders of this Note and of any Note issued upon the registration of transfer
      hereof or in exchange herefor or in lieu hereof, whether or not notation of
      such
      consent or waiver is made upon this Note.

     

    As
      provided in and subject to the provisions of the Indenture, the Holder of this
      Note shall not have the right to institute any proceeding with respect to the
      Indenture or for the appointment of a receiver or trustee or for any other
      remedy thereunder, unless such Holder shall have previously given the Trustee
      written notice of a continuing Event of Default with respect to the Notes,
      the
      Holders of not less than 30% in principal amount of the Notes at the time
      Outstanding shall have made written request to the Trustee to pursue such remedy
      in respect of such Event of Default as Trustee and offered the Trustee
      reasonable security or indemnity against any loss, liability or expense, and
      the
      Trustee shall not have received from the Holders of a majority in principal
      amount of Notes at the time Outstanding a direction inconsistent with such
      request, and shall have failed to institute any such proceeding, for 60 days
      after receipt of such notice, request and offer of security or indemnity. The
      foregoing shall not apply to any suit instituted by the Holder of this Note
      for
      the enforcement of any payment of principal hereof or any premium or interest
      hereon on or after the respective due dates expressed herein.

     

    No
      reference herein to the Indenture and no provision of this Note or of the
      Indenture shall alter or impair the obligation of the Company, which is absolute
      and unconditional, to pay the principal of and any premium and interest on
      this
      Note at the times, place and rate, and in the coin or currency, herein
      prescribed.

     

    As
      provided in the Indenture and subject to certain limitations therein set forth,
      the transfer of this Note is registrable in the Note Register, upon surrender
      of
      this Note for registration of transfer at the office or agency of the Company
      in
      a Place of Payment, duly endorsed by, or accompanied by a written instrument
      of
      transfer in form satisfactory to the Company and the Note Registrar duly
      executed by, the Holder hereof or such Holder’s attorney duly authorized in
      writing, and thereupon one or more new Notes of like tenor, of authorized
      denominations and for the same aggregate principal amount, will be issued to
      the
      designated transferee or transferees.

     

    The
      Notes
      are issuable only in fully registered form without coupons in minimum
      denominations of $2,000 and any integral multiple of $l,000 in excess thereof.
      As provided in 

     

    
      
        
        

      

      
        B-8

        
          

        

      

      
        
        

      

    

    the
      Indenture and subject to certain limitations therein set forth, the Notes are
      exchangeable for a like aggregate principal amount of Notes of like tenor of
      a
      different authorized denomination, as requested by the Holder surrendering
      the
      same.

     

    No
      service charge shall be made for any such registration, transfer or exchange,
      but the Company may require payment of a sum sufficient to cover any transfer
      tax or other governmental charge payable in connection therewith.

     

    Prior
      to
      due presentment of this Note for registration or transfer, the Company, any
      other obligor in respect of this Note, the Trustee and any agent of the Company,
      such other obligor or the Trustee may treat the Person in whose name this Note
      is registered as the owner hereof for all purposes, whether or not this Note
      be
      overdue, and none of the Company, any other obligor upon this Note, the Trustee
      nor any such agent shall be affected by notice to the contrary.

     

    No
      director, officer, employee, incorporator, equity holder, member or stockholder,
      as such, of the Company, any Guarantor or any Subsidiary of any thereof shall
      have any liability for any obligation of the Company or any Guarantor under
      the
      Indenture, the Notes or any Guarantee, or for any claim based on, in respect
      of,
      or by reason of, any such obligation or its creation. Each Holder, by accepting
      this Note, hereby waives and releases all such liability. The waiver and release
      are part of the consideration for issuance of the Notes.

     

    THE
      INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
      THE LAWS OF THE STATE OF NEW YORK. THE TRUSTEE, THE COMPANY, ANY OTHER OBLIGOR
      IN RESPECT OF THE NOTES AND (BY THEIR ACCEPTANCE OF THE NOTES) THE HOLDERS,
      AGREE TO SUBMIT TO THE JURISDICTION OF ANY UNITED STATES FEDERAL OR STATE COURT
      LOCATED IN THE BOROUGH OF MANHATTAN, IN THE CITY OF NEW YORK IN ANY ACTION
      OR
      PROCEEDING ARISING OUT OF OR RELATING TO THE INDENTURE, THE NOTES OR THE
      GUARANTEES.

     

     

    
      
        
        

      

      
        B-9

        
          

        

      

      
        
        

      

    

    

    GUARANTEE

     

    For
      value
      received, the undersigned hereby unconditionally guarantees, as principal
      obligor and not only as a surety, to the Holder of this Note the cash payments
      in United States dollars of principal of, premium, if any, and interest on
      this
      Note (and including Additional Interest payable thereon) in the amounts and
      at
      the times when due and interest on the overdue principal, premium, if any,
      and
      interest, if any, of this Note, if lawful, and the payment or performance of
      all
      other Obligations of the Company under the Indenture (as defined below) or
      the
      Note, to the Holder of this Note and the Trustee, all in accordance with and
      subject to the terms and limitations of this Note, Article XIII of the Indenture
      and this Guarantee. This Guarantee will become effective in accordance with
      Article XIII of the Indenture and its terms shall be evidenced therein. The
      validity and enforceability of this Guarantee shall not be affected by the
      fact
      that it is not affixed to any particular Note.

     

    Capitalized
      terms used but not defined herein shall have the meanings ascribed to them
      in
      the Indenture, dated as of April 19, 2006, among Avis Budget Car Rental, LLC,
      a
      Delaware limited liability company, and Avis Budget Finance, Inc., a Delaware
      corporation (together, “the Company”), the Guarantors from time to time parties
      thereto and The Bank of Nova Scotia Trust Company of New York, as Trustee.
      

     

    THIS
      GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
      THE
      STATE OF NEW YORK. EACH GUARANTOR HEREBY AGREES TO SUBMIT TO THE JURISDICTION
      OF
      ANY UNITED STATES FEDERAL OR STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN,
      IN
      THE CITY OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING
      TO
      THIS GUARANTEE.

     

    This
      Guarantee is subject to release upon the terms set forth 
      in the
      Indenture.

     

     

     

    
      
        
        

      

      
        B-10

        
          

        

      

      
        
        

      

    

     

     
      

      
        	 	 	 	
                AVIS
                  BUDGET HOLDINGS, LLC

                 

              	 
	 	 	
                By: 

              	 	 
	 	 	
                Name:

                Title:
                  

              	
                David
                  B. Wyshner

                Executive
                  Vice President, Chief Financial Officer

                and
                  Treasurer

              	 

      

      

      

      
        	 	 	 	
                AVIS
                  ASIA AND PACIFIC, LIMITED

                AVIS
                  CAR RENTAL GROUP, LLC

                AVIS
                  CARIBBEAN, LIMITED

                AVIS
                  ENTERPRISES, INC.

                AVIS
                  GROUP HOLDINGS, LLC

                AVIS
                  INTERNATIONAL, LTD.

                AVIS
                  LEASING CORPORATION

                AVIS
                  RENT A CAR SYSTEM, LLC

                PF
                  CLAIMS MANAGEMENT, LTD.

                 

              	 
	 	 	
                By: 

              	 	 
	 	 	
                Name:

                Title:
                  

              	
                David
                  B. Wyshner

                Chief
                  Financial Officer

              	 

      

      

       

      
        	 	 	 	
                CENDANT
                  CAR RENTAL OPERATIONS SUPPORT, INC.

                WIZARD
                  CO., INC.

                 

              	 
	 	 	
                By: 

              	 	 
	 	 	
                Name:

                Title:
                  

              	
                David
                  B. Wyshner

                Treasurer

              	 

      

            

       

      
        	 	 	 	
                ARACS
                  LLC

                AVIS
                  OPERATIONS, LLC

                 

              	 
	 	 	
                By: 

              	 	 
	 	 	
                Name:

                Title:
                  

              	
                Robert
                  E. Muhs

                Vice
                  President and Assistant Secretary

              	 

      

       

       

      

      
        	 	 	 	
                BGI
                  LEASING, INC.

                BUDGET
                  RENT A CAR SYSTEM, INC.

                 

              	 
	 	 	
                By: 

              	 	 
	 	 	
                Name:

                Title:
                  

              	
                David
                  Blaskey

                President

              	 

      

       

       

      

      
        
          
            
            

          

          
            B-11

            
              

            

          

          
            
            

          

        

      

       

      

        
          	 	 	 	
                  BUDGET
                    TRUCK RENTAL LLC 

                	 
	 	 	
                  By: 

                	 	 
	 	 	
                  Name:

                  Title:
                    

                	
                  David
                    Blaskey

                  Senior
                    Vice President

                	 

        

      

      

       

       

      
        
          
          

        

        
          B-12

          
            

          

        

        
          
          

        

      

       

       

    

    

    [FORM
      OF
      CERTIFICATE OF TRANSFER]

     

    FOR
      VALUE
      RECEIVED the undersigned Holder hereby sell(s), assign(s) and transfer(s)
      unto

     

     

    Insert
      Taxpayer Identification No.

     

     

    (Please
      print or typewrite name and address including zip code of assignee)

     

    
      

    

     

    
      

    

     

    the
      within Note and all rights thereunder, hereby irrevocably constituting and
      appointing

     

    
      
 

    attorney
      to transfer such Note on the books of the Company with full power of
      substitution in the premises.

     

    Check
      One

     

    [  ]
      (a) this
      Note
      is being transferred in compliance with the exemption from registration under
      the Securities Act of 1933, as amended, provided by Rule 144A
      thereunder.

     

    or

     

    [  ]
      (b) this
      Note
      is being transferred other than in accordance with (a) above and documents
      are
      being furnished which comply with the conditions of transfer set forth in this
      Note and the Indenture.

     

    If
      neither of the foregoing boxes is checked, the Trustee or other Note Registrar
      shall not be obligated to register this Note in the name of any Person other
      than the Holder hereof unless and until the conditions to any such transfer
      of
      registration set forth herein and in Section 313 of the Indenture shall have
      been satisfied.

     

    Date:  

      
        

      

    

     

    

    
      
        
        

      

      
        B-13

        
          

        

      

      
        
        

      

    

    NOTICE:
      The signature to this assignment must correspond with the name as written upon
      the face of the within-mentioned instrument in every particular, without
      alteration or any change whatsoever.

     

     

    Signature
      Guarantee:  

      

    

     

    Signatures
      must be guaranteed by an “eligible guarantor institution” meeting the
      requirements of the Note Registrar, which requirements include membership or
      participation in the Security Transfer Agent Medallion Program (“STAMP”)
      or
      such other “signature guarantee program” as may be determined by the Note
      Registrar in addition to, or in substitution for, STAMP, all in accordance
      with
      the Securities Exchange Act of 1934, as amended.

     

     

    
      
        
        

      

      
        B-14

        
          

        

      

      
        
        

      

    

    

    TO
      BE
      COMPLETED BY PURCHASER IF (a) ABOVE IS CHECKED.

     

    The
      undersigned represents and warrants that it is purchasing this Note for its
      own
      account or an account with respect to which it exercises sole investment
      discretion and that it and any such account is a “qualified institutional buyer”
within the meaning of Rule 144A under the Securities Act of 1933, as amended,
      and is aware that the sale to it is being made in reliance on Rule 144A and
      acknowledges that it has received such information regarding the Company as
      the
      undersigned has requested pursuant to Rule 144A or has determined not to request
      such information and that it is aware that the transferor is relying upon the
      undersigned’s foregoing representations in order to claim the exemption from
      registration provided by Rule 144A.

     

    Dated:  

      
        

      

       

    

    
      

      NOTICE: 
To
        be executed by an executive
        officer

    

     

     

    

    
      
        
        

      

      
        B-15

        
          

        

      

      
        
        

      

    

     

    OPTION
      OF
      HOLDER TO ELECT PURCHASE

     

    If
      you
      wish to have this Note purchased by the Company pursuant to Section 411 or
      415
      of the Indenture, check the box: [   ].

     

    If
      you
      wish to have a portion of this Note purchased by the Company pursuant to Section
      411 or 415 of the Indenture, state the amount (in principal amount)
      below:

     

    $________________

     

     

    Date: 

      

    

     

    Your
      Signature: 

      

    

     

    (Sign
      exactly as your name appears on the other side of this Note)

     

    Signature
      Guarantee: 

      

    

     

     

    Signatures
      must be guaranteed by an “eligible guarantor institution” meeting the
      requirements of the Note Registrar, which requirements include membership or
      participation in the Security Transfer Agent Medallion Program (“STAMP”)
      or
      such other “signature guarantee program” as may be determined by the Note
      Registrar in addition to, or in substitution for, STAMP, all in accordance
      with
      the Securities Exchange Act of 1934, as amended.

     

     

    

    
      
        
        

      

      
        B-16

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      OF INCREASES OR DECREASES IN GLOBAL NOTE

     

    The
      following increases or decreases in this Global Note have been
      made:

     

    
      	
              Date
                of Exchange 

            	
              Amount
                of decreases in Principal Amount of this Global Note

            	
              Amount
                of increases in Principal Amount of this Global Note

            	
              Principal
                amount of this Global Note following such decreases or
                increases

            	
              Signature
                of authorized officer of Trustee or Notes Custodian

            
	 	 	 	 	 

    

    

     

    

    
      
        
        

      

      
        B-17

        
          

        

      

      
        
        

      

    

     

    

    EXHIBIT
      C

     

    Form
      of
      Initial 7.75% Note17  

     

    AVIS
      BUDGET CAR RENTAL, LLC

     

    AVIS
      BUDGET FINANCE, INC.

     

    

     

    7.75%
      Senior Notes due 2016

     

    CUSIP
      No.
      _______________        
      No.
      ___

     

    $______________

     

    Avis
      Budget Car Rental, LLC, a limited liability company duly organized and existing
      under the laws of the State of Delaware, and Avis Budget Finance, Inc., a
      corporation duly organized and existing under the laws of the State of Delaware
      (together, “the Company,”
which
      term includes their successors and assigns), promise to pay to ___________,
      or
      registered assigns, the principal sum of $________________
      ([                                  ]
      United States Dollars) [(or such lesser or greater amount as shall be
      outstanding hereunder from time to time in accordance with Sections 312 and
      313
      of the Indenture referred to herein)]18  (the
      “Principal
      Amount”)
      on May
      15, 2016. The Company promises to pay interest semi-annually in cash on May
      15
      and November 15 of each year, commencing November 15, 2006, at the rate of
      7.75%
      per annum (subject to adjustment as provided below)19 until
      the
      Principal Amount is paid or made available for payment. [Interest on this Note
      will accrue from the most recent date to which interest on this Note or any
      of
      its Predecessor Notes has been paid or duly provided for or, if no interest
      has
      been paid, from the Issue Date.]20  Interest
      on this Note will accrue (or will be deemed to have accrued) from the most
      recent date to which interest on this Note or any of its Predecessor Notes
      has
      been paid or duly provided for or, if no such interest has been paid, from
      ______, ______21]22   Interest
      on the Notes shall be computed on the basis of a 360-day year of twelve 30-day
      months. The interest so payable, and punctually paid or duly provided for,
      on
      any Interest Payment Date will, as provided in such Indenture, be paid to the
      Person in whose name this Note (or one or more Predecessor Notes) is registered
      at the close of business on the Regular Record Date for such interest, which
      shall be the May 1 or November 1 (whether or not a Business Day), as the case
      may be, next preceding such Interest Payment Date. Any such interest not so
      punctually paid or duly provided for will forthwith cease to be payable to
      the
      Holder on such Regular Record Date and may either be paid to the Person in
      whose
      name this Note (or one or more Predecessor Notes) is registered at the close
      of
      business on a Special Record Date for the payment of such Defaulted Interest
      to
      be fixed by the Trustee, notice whereof shall be given to Holders of Notes
      not
      more than 15 days nor less than 10 days prior to 

     

    
      
17 Insert
      any applicable legends from Article II.
      18  Include
        only if the Note is issued in global form.

      19  Include
        only for Initial Note.

      20 Include
        only for Original Notes.

      21 Insert
        the Interest Payment Date immediately preceding the date of issuance of the
        applicable Additional Notes, or if the date of issuance of such Additional
        Notes
        is an Interest Payment Date, such date of issuance.

      22
        Include
        only for Additional Notes.

    

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

    such
      Special Record Date, or be paid at any time in any other lawful manner not
      inconsistent with the requirements of any securities exchange on which the
      Notes
      may be listed, and upon such notice as may be required by such exchange, all
      as
      more fully provided in said Indenture.

     

    [The
      Holder of this Note is entitled to the benefits of the Registration Rights
      Agreement, dated April 19, 2006, among the Company, the Guarantors and the
      initial purchasers named therein (the “Registration
      Rights Agreement”).
      Until
      (i) this Note has been exchanged for an Exchange Security (as defined in the
      Registration Rights Agreement) in an Exchange Offer (as defined in the
      Registration Rights Agreement); (ii) a Shelf Registration Statement (as defined
      in the Registration Rights Agreement) registering this Note under the Securities
      Act has been declared or becomes effective and this Note has been sold or
      otherwise transferred by the Holder thereof pursuant to and in a manner
      contemplated by such effective Shelf Registration Statement; (iii) this Note
      is
      sold pursuant to Rule 144 under circumstances in which any legend borne by
      this
      Note relating to restrictions on transferability thereof, under the Securities
      Act or otherwise, is removed by the Company or pursuant to the Indenture
      referred to herein; or (iv) this Note is eligible to be sold pursuant to
      paragraph (k) of Rule 144: From and including the date on which a Registration
      Default (as defined below) shall occur to but excluding the date on which such
      Registration Default has been cured, additional interest will accrue on this
      Note until such time as all Registration Defaults have been cured at the rate
      of
      (a) prior to the 91st day of such period (for so long as such period is
      continuing), 0.25% per annum and (b) thereafter (so long as such period is
      continuing), 0.50% per annum. Any such additional interest shall not exceed
      such
      respective rates for such respective periods, and shall not in any event exceed
      0.50% per annum in the aggregate, regardless of the number of Registration
      Defaults that shall have occurred and be continuing. Any such additional
      interest shall be paid in the same manner and on the same dates as interest
      payments in respect of this Note. Following the cure of all Registration
      Defaults, the accrual of such additional interest will cease. A Registration
      Default under clause (iii) or (iv) below will be deemed cured upon consummation
      of the Exchange Offer in the case of a Shelf Registration Statement required
      to
      be filed due to a failure to consummate the Exchange Offer within the required
      time period. For purposes of the foregoing, each of the following events, as
      more particularly defined in the Registration Rights Agreement, is a
“Registration
      Default”:
      (i)
      the Exchange Offer has not been consummated within 405 days after the Issue
      Date; (ii) if a Shelf Registration Statement required by the Registration Rights
      Agreement is not declared effective by the SEC on or before the later of (1)
      405
      days after the Issue Date or (2) 90 days after the delivery of a request to
      file
      a Registration Statement as provided for in the Registration Rights Agreement;
      or (iii) if
      any
      Shelf Registration Statement required by the Registration Rights Agreement
      is
      filed and declared effective, and during the period the Company is required
      to
      use its reasonable best efforts to cause the Shelf Registration Statement to
      remain effective, the Company shall have suspended the Shelf Registration
      Statement or it ceases to be effective for more than 75 days in any twelve-month
      period and be continuing to suspend the availability of the Shelf Registration
      Statement.]7   Include
      only for Initial Note when required by the Registration Rights
      Agreement. 8   For
      an
      Initial Additional Note, add any similar provision, if any, as may be agreed
      by
      the Company with respect to additional interest on such Initial Additional
      Note.

     

    
      
23 Include
      only for Initial Note when required by the Registration Rights Agreement.
      24
        For an
        Initial Additional Note, add any similar provision, if any, as may be agreed
        by
        the Company with respect to additional interest on such Initial Additional
        Note.

    

    

    

    
      
        
        

      

      
        C-2

        
          

        

      

      
        
        

      

    

    
      Payment
        of the principal of (and premium, if any) and interest on this Note will
        be made
        at the office of the applicable Paying Agent, or such other office or agency
        of
        the Company maintained for that purpose; provided,
        however,
        that at
        the option of the Company payment of interest may be made by check mailed
        to the
        address of the Person entitled thereto as such address shall appear in the
        Note
        Register.

       

      Reference
        is hereby made to the further provisions of this Note set forth on the attached
        Additional Terms of the Notes, which further provisions shall for all purposes
        have the same effect as if set forth at this place.

       

      Unless
        the certificate of authentication hereon has been executed by the Trustee
        referred to herein by manual signature, this Note shall not be entitled to
        any
        benefit under the Indenture or be valid or obligatory for any
        purpose.

    

     

    
      
        
        

      

      
        C-3

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Company has caused this instrument to be duly
      executed.

     

    
      

        
          	 	 	 	
                  AVIS
                    BUDGET CAR RENTAL, LLC

                  AVIS
                    BUDGET FINANCE, INC.

                	 
	 	 	
                  By: 

                	 	 
	 	 	
                  Name:

                  Title:
                    

                	
                  David
                    B. Wyshner

                  Executive
                    Vice President, Chief Financial Officer

                  and
                    Treasurer

                	 

        

      

       

      

 

      
        
          
          

        

        
          C-4

          
            

          

        

        
          
          

        

      

    

    

    This
      is
      one of the Notes referred to in the within-mentioned Indenture.

     

     

    

      
        	 	 	 	
                THE
                  BANK OF NOVA SCOTIA TRUST COMPANY OF NEW YORK 

                As
                  Trustee

              	 
	 	 	
                By: 

              	 	 
	 	 	
                 

              	
                Authorized
                  officer

              	 
	
                 

                Dated:

                 

              	 	 	 	 

      

       

    

     

    

    
      
        
        

      

      
        C-5

        
          

        

      

      
        
        

      

    

    Additional
      Terms of the Notes

     

    This
      Note
      is one of the duly authorized issue of 7.75% Senior Notes due 2016 of the
      Company (herein called the “Notes”),
      issued under an Indenture, dated as of April 19, 2006 (herein called the
“Indenture,”
which
      term shall have the meanings assigned to it in such instrument), among the
      Company, the Guarantors from time to time parties thereto (“the Guarantors”)
      and
      The Bank of Nova Scotia Trust Company of New York, as Trustee (herein called
      the
“Trustee,”
which
      term includes any successor trustee under the Indenture), and reference is
      hereby made to the Indenture for a statement of the respective rights,
      limitations of rights, duties and immunities thereunder of the Company, any
      other obligor upon this Note, the Trustee and the Holders of the Notes and
      of
      the terms upon which the Notes are, and are to be, authenticated and delivered.
      The terms of the Notes include those stated in the Indenture and those made
      a
      part of the Indenture by reference to the Trust Indenture Act of 1939, as
      amended, as in effect from time to time (the “TIA”).
      The
      Notes are subject to all such terms, and Holders are referred to the Indenture
      and the TIA for a statement of such terms. Additional Notes may be issued under
      the Indenture which will vote as a class with the Notes and otherwise be treated
      as Notes for purposes of the Indenture.

     

    All
      terms
      used in this Note that are defined in the Indenture shall have the meanings
      assigned to them in the Indenture.

     

    This
      Note
      may hereafter be entitled to certain other Guarantees made for the benefit
      of
      the Holders. Reference is made to Article XIII of the Indenture for terms
      relating to such Guarantees, including the release, termination and discharge
      thereof. Neither the Company nor any Guarantor shall be required to make any
      notation on this Note to reflect any Guarantee or any such release, termination
      or discharge.

     

    The
      Notes
      will be redeemable, at the Company’s option, in whole or in part, at any time
      and from time to time on and after May 15, 2011, and prior to maturity at the
      applicable redemption price set forth below. Such redemption may be made upon
      notice mailed by first-class mail to each Holder’s registered address in
      accordance with the Indenture. The Company may provide in such notice that
      payment of the redemption price and the performance of the Company’s obligations
      with respect to such redemption may be performed by another Person. Any such
      redemption and notice may, in the Company’s discretion, be subject to the
      satisfaction of one or more conditions precedent, including but not limited
      to
      the occurrence of a Change of Control. The Notes will be so redeemable at the
      following redemption prices (expressed as a percentage of principal amount),
      plus accrued and unpaid interest, if any, to the relevant Redemption Date
      (subject to the right of Holders of record on the relevant Regular Record Date
      to receive interest due on the relevant Interest Payment Date), if redeemed
      during the 12-month period commencing on May 15 of the years set forth
      below:

     

    
      	
              Period

            	
              Redemption
                Price

            
	
              2011

            	
              103.875%

            
	
              2012

            	
              102.583%

            
	
              2013

            	
              101.292%

            
	
              2014
                and thereafter

            	
              100.000%

            
	 	 

    

     

    
      
        
        

      

      
        C-6

        
          

        

      

      
        
        

      

    

     

    In
      addition, at any time and from time to time on or prior to May 15, 2009, the
      Company at its option may redeem Notes in an aggregate principal amount equal
      to
      up to 35% of the original aggregate principal amount of Notes (including the
      principal amount of any Additional Notes), with funds in an aggregate amount
      not
      exceeding the aggregate proceeds of one or more Equity Offerings, at a
      redemption price (expressed as a percentage of principal amount thereof) of
      107.75%, plus accrued and unpaid interest, if any, to, but not including, the
      Redemption Date (subject to the right of Holders of record on the relevant
      Record Date to receive interest due on the relevant Interest Payment Date);
      provided,
      however,
      that an
      aggregate principal amount of Notes equal to at least 65% of the original
      aggregate principal amount of Notes (including the principal amount of any
      Additional Notes) must remain outstanding after each such redemption. The
      Company may make such redemption upon notice mailed by first-class mail to
      each
      Holder’s registered address in accordance with the Indenture (but in no event
      more than 180 days after the completion of the related Equity Offering). The
      Company may provide in such notice that payment of the redemption price and
      performance of the Company’s obligations with respect to such redemption may be
      performed by another Person. Any such notice may be given prior to the
      completion of the related Equity Offering, and any such redemption or notice
      may, at the Company’s discretion, be subject to the satisfaction of one or more
      conditions precedent, including the completion of the related Equity
      Offering.

     

    At
      any
      time prior to May 15, 2011, Notes may also be redeemed or purchased (by the
      Company or any other Person) in whole or in part, at the Company’s option, at a
      price equal to 100% of the principal amount thereof plus the Applicable Premium
      as of, and accrued but unpaid interest, if any, to, but not including, the
      Redemption Date (subject to the right of Holders of record on the relevant
      Record Date to receive interest due on the relevant Interest Payment Date).
      Such
      redemption or purchase may be made upon notice mailed by first-class mail to
      each Holder’s registered address in accordance with the Indenture. The Company
      may provide in such notice that payment of the Redemption Price and performance
      of the Company’s obligations with respect to such redemption or purchase may be
      performed by another Person. Any such redemption, purchase or notice may, at
      the
      Company’s discretion, be subject to the satisfaction of one or more conditions
      precedent, including but not limited to the occurrence of a Change of
      Control.

     

    The
      Indenture provides that, upon the occurrence after the Issue Date of a Change
      of
      Control, each Holder will have the right to require that the Company repurchase
      all or any part of such Holder’s Notes at a purchase price in cash equal to 101%
      of the principal amount thereof plus accrued and unpaid interest, if any, to,
      but not including, the date of such repurchase (subject to the right of Holders
      of record on the relevant Record Date to receive interest due on the relevant
      Interest Payment Date); provided,
      however,
      that
      the Company shall not be obligated to repurchase Notes in the event it has
      exercised its right to redeem all the Notes as described above.

     

    The
      Notes
      will not be entitled to the benefit of a sinking fund.

     

    The
      Indenture contains provisions for defeasance at any time of the entire
      indebtedness of this Note or certain restrictive covenants and certain Events
      of
      Default with respect to this Note, in each case upon compliance with certain
      conditions set forth in the Indenture.

     

    
      
        
        

      

      
        C-7

        
          

        

      

      
        
        

      

    

    If
      an
      Event of Default with respect to the Notes shall occur and be continuing, the
      principal of and accrued but unpaid interest on the Notes may be declared due
      and payable in the manner and with the effect provided in the
      Indenture.

     

    The
      Indenture permits, with certain exceptions as therein provided, the amendment
      thereof and the modification of the rights and obligations of the Company and
      the rights of the Holders of the Notes to be effected under the Indenture at
      any
      time by the Company and the Trustee with the consent of the Holders of at least
      a majority in principal amount of the Notes at the time Outstanding to be
      affected. The Indenture also contains provisions permitting the Holders of
      specified percentages in principal amount of the Notes at the time Outstanding,
      on behalf of the Holders of all Notes, to waive compliance by the Company with
      certain provisions of the Indenture and certain past defaults under the
      Indenture and their consequences. Any such consent or waiver by the Holder
      of
      this Note shall be conclusive and binding upon such Holder and upon all future
      Holders of this Note and of any Note issued upon the registration of transfer
      hereof or in exchange herefor or in lieu hereof, whether or not notation of
      such
      consent or waiver is made upon this Note.

     

    As
      provided in and subject to the provisions of the Indenture, the Holder of this
      Note shall not have the right to institute any proceeding with respect to the
      Indenture or for the appointment of a receiver or trustee or for any other
      remedy thereunder, unless such Holder shall have previously given the Trustee
      written notice of a continuing Event of Default with respect to the Notes,
      the
      Holders of not less than 30% in principal amount of the Notes at the time
      Outstanding shall have made written request to the Trustee to pursue such remedy
      in respect of such Event of Default as Trustee and offered the Trustee
      reasonable security or indemnity against any loss, liability or expense, and
      the
      Trustee shall not have received from the Holders of a majority in principal
      amount of Notes at the time Outstanding a direction inconsistent with such
      request, and shall have failed to institute any such proceeding, for 60 days
      after receipt of such notice, request and offer of security or indemnity. The
      foregoing shall not apply to any suit instituted by the Holder of this Note
      for
      the enforcement of any payment of principal hereof or any premium or interest
      hereon on or after the respective due dates expressed herein.

     

    No
      reference herein to the Indenture and no provision of this Note or of the
      Indenture shall alter or impair the obligation of the Company, which is absolute
      and unconditional, to pay the principal of and any premium and interest on
      this
      Note at the times, place and rate, and in the coin or currency, herein
      prescribed.

     

    As
      provided in the Indenture and subject to certain limitations therein set forth,
      the transfer of this Note is registrable in the Note Register, upon surrender
      of
      this Note for registration of transfer at the office or agency of the Company
      in
      a Place of Payment, duly endorsed by, or accompanied by a written instrument
      of
      transfer in form satisfactory to the Company and the Note Registrar duly
      executed by, the Holder hereof or such Holder’s attorney duly authorized in
      writing, and thereupon one or more new Notes of like tenor, of authorized
      denominations and for the same aggregate principal amount, will be issued to
      the
      designated transferee or transferees.

     

    The
      Notes
      are issuable only in fully registered form without coupons in minimum
      denominations of $2,000 and any integral multiple of $l,000 in excess thereof.
      As provided in 

     

    
      
        
        

      

      
        C-8

        
          

        

      

      
        
        

      

    

    the
      Indenture and subject to certain limitations therein set forth, the Notes are
      exchangeable for a like aggregate principal amount of Notes of like tenor of
      a
      different authorized denomination, as requested by the Holder surrendering
      the
      same.

     

    No
      service charge shall be made for any such registration, transfer or exchange,
      but the Company may require payment of a sum sufficient to cover any transfer
      tax or other governmental charge payable in connection therewith.

     

    Prior
      to
      due presentment of this Note for registration or transfer, the Company, any
      other obligor in respect of this Note, the Trustee and any agent of the Company,
      such other obligor or the Trustee may treat the Person in whose name this Note
      is registered as the owner hereof for all purposes, whether or not this Note
      be
      overdue, and none of the Company, any other obligor upon this Note, the Trustee
      nor any such agent shall be affected by notice to the contrary.

     

    No
      director, officer, employee, incorporator, equity holder, member or stockholder,
      as such, of the Company, any Guarantor or any Subsidiary of any thereof shall
      have any liability for any obligation of the Company or any Guarantor under
      the
      Indenture, the Notes or any Guarantee, or for any claim based on, in respect
      of,
      or by reason of, any such obligation or its creation. Each Holder, by accepting
      this Note, hereby waives and releases all such liability. The waiver and release
      are part of the consideration for issuance of the Notes.

     

    THE
      INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
      THE LAWS OF THE STATE OF NEW YORK. THE TRUSTEE, THE COMPANY, ANY OTHER OBLIGOR
      IN RESPECT OF THE NOTES AND (BY THEIR ACCEPTANCE OF THE NOTES) THE HOLDERS,
      AGREE TO SUBMIT TO THE JURISDICTION OF ANY UNITED STATES FEDERAL OR STATE COURT
      LOCATED IN THE BOROUGH OF MANHATTAN, IN THE CITY OF NEW YORK IN ANY ACTION
      OR
      PROCEEDING ARISING OUT OF OR RELATING TO THE INDENTURE, THE NOTES OR THE
      GUARANTEES.

     

    
      
        
        

      

      
        C-9

        
          

        

      

      
        
        

      

    

     

    

    GUARANTEE

     

    For
      value
      received, the undersigned hereby unconditionally guarantees, as principal
      obligor and not only as a surety, to the Holder of this Note the cash payments
      in United States dollars of principal of, premium, if any, and interest on
      this
      Note (and including Additional Interest payable thereon) in the amounts and
      at
      the times when due and interest on the overdue principal, premium, if any,
      and
      interest, if any, of this Note, if lawful, and the payment or performance of
      all
      other Obligations of the Company under the Indenture (as defined below) or
      the
      Note, to the Holder of this Note and the Trustee, all in accordance with and
      subject to the terms and limitations of this Note, Article XIII of the Indenture
      and this Guarantee. This Guarantee will become effective in accordance with
      Article XIII of the Indenture and its terms shall be evidenced therein. The
      validity and enforceability of this Guarantee shall not be affected by the
      fact
      that it is not affixed to any particular Note.

     

    Capitalized
      terms used but not defined herein shall have the meanings ascribed to them
      in
      the Indenture, dated as of April 19, 2006, among Avis Budget Car Rental, LLC,
      a
      Delaware limited liability company, and Avis Budget Finance, Inc., a Delaware
      corporation (together, “the Company”), the Guarantors from time to time parties
      thereto and The Bank of Nova Scotia Trust Company of New York, as Trustee.
      

     

    THIS
      GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
      THE
      STATE OF NEW YORK. EACH GUARANTOR HEREBY AGREES TO SUBMIT TO THE JURISDICTION
      OF
      ANY UNITED STATES FEDERAL OR STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN,
      IN
      THE CITY OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING
      TO
      THIS GUARANTEE.

     

    This
      Guarantee is subject to release upon the terms set forth 
      in the
      Indenture.

     

     

    

    
      
        
        

      

      
        C-10

        
          

        

      

      
        
        

      

    

     

    
      

      
        	 	 	 	
                AVIS
                  BUDGET HOLDINGS, LLC

                 

              	 
	 	 	
                By: 

              	 	 
	 	 	
                Name:

                Title:
                  

              	
                David
                  B. Wyshner

                Executive
                  Vice President, Chief Financial Officer

                and
                  Treasurer

              	 

      

      

      

      
        	 	 	 	
                AVIS
                  ASIA AND PACIFIC, LIMITED

                AVIS
                  CAR RENTAL GROUP, LLC

                AVIS
                  CARIBBEAN, LIMITED

                AVIS
                  ENTERPRISES, INC.

                AVIS
                  GROUP HOLDINGS, LLC

                AVIS
                  INTERNATIONAL, LTD.

                AVIS
                  LEASING CORPORATION

                AVIS
                  RENT A CAR SYSTEM, LLC

                PF
                  CLAIMS MANAGEMENT, LTD.

                 

              	 
	 	 	
                By: 

              	 	 
	 	 	
                Name:

                Title:
                  

              	
                David
                  B. Wyshner

                Chief
                  Financial Officer

              	 

      

      

       

      
        	 	 	 	
                CENDANT
                  CAR RENTAL OPERATIONS SUPPORT, INC.

                WIZARD
                  CO., INC.

                 

              	 
	 	 	
                By: 

              	 	 
	 	 	
                Name:

                Title:
                  

              	
                David
                  B. Wyshner

                Treasurer

              	 

      

            

       

      
        	 	 	 	
                ARACS
                  LLC

                AVIS
                  OPERATIONS, LLC

                 

              	 
	 	 	
                By: 

              	 	 
	 	 	
                Name:

                Title:
                  

              	
                Robert
                  E. Muhs

                Vice
                  President and Assistant Secretary

              	 

      

       

       

      

      
        	 	 	 	
                BGI
                  LEASING, INC.

                BUDGET
                  RENT A CAR SYSTEM, INC.

                 

              	 
	 	 	
                By: 

              	 	 
	 	 	
                Name:

                Title:
                  

              	
                David
                  Blaskey

                President

              	 

      

       

       

      

      
        
          
            
            

          

          
            C-11

            
              

            

          

          
            
            

          

        

      

       

      

        
          	 	 	 	
                  BUDGET
                    TRUCK RENTAL LLC 

                	 
	 	 	
                  By: 

                	 	 
	 	 	
                  Name:

                  Title:
                    

                	
                  David
                    Blaskey

                  Senior
                    Vice President

                	 

        

      

      

       

       

      
        
          
          

        

        
          C-12

          
            

          

        

        
          
          

        

      

       

    

     

    

    [FORM
      OF
      CERTIFICATE OF TRANSFER]

     

    FOR
      VALUE
      RECEIVED the undersigned Holder hereby sell(s), assign(s) and transfer(s)
      unto

     

     

    Insert
      Taxpayer Identification No.

     

     

    (Please
      print or typewrite name and address including zip code of assignee)

     

     

    
      
        

      

       

      
        

    

    the
      within Note and all rights thereunder, hereby irrevocably constituting and
      appointing

     

    
      

    

     

    attorney
      to transfer such Note on the books of the Company with full power of
      substitution in the premises.

     

    Check
      One

     

    [  ]
      (a) this
      Note
      is being transferred in compliance with the exemption from registration under
      the Securities Act of 1933, as amended, provided by Rule 144A
      thereunder.

     

    or

     

    [  ]
      (b) this
      Note
      is being transferred other than in accordance with (a) above and documents
      are
      being furnished which comply with the conditions of transfer set forth in this
      Note and the Indenture.

     

    If
      neither of the foregoing boxes is checked, the Trustee or other Note Registrar
      shall not be obligated to register this Note in the name of any Person other
      than the Holder hereof unless and until the conditions to any such transfer
      of
      registration set forth herein and in Section 313 of the Indenture shall have
      been satisfied.

     

    Date:  

      

    

     

    

    
      
        
        

      

      
        C-13

        
          

        

      

      
        
        

      

    

    NOTICE:
      The signature to this assignment must correspond with the name as written upon
      the face of the within-mentioned instrument in every particular, without
      alteration or any change whatsoever.

     

     

    Signature
      Guarantee:  

      

    

     

    Signatures
      must be guaranteed by an “eligible guarantor institution” meeting the
      requirements of the Note Registrar, which requirements include membership or
      participation in the Security Transfer Agent Medallion Program (“STAMP”)
      or
      such other “signature guarantee program” as may be determined by the Note
      Registrar in addition to, or in substitution for, STAMP, all in accordance
      with
      the Securities Exchange Act of 1934, as amended.

     

    

    
      
        
        

      

      
        C-14

        
          

        

      

      
        
        

      

    

    TO
      BE
      COMPLETED BY PURCHASER IF (a) ABOVE IS CHECKED.

     

    The
      undersigned represents and warrants that it is purchasing this Note for its
      own
      account or an account with respect to which it exercises sole investment
      discretion and that it and any such account is a “qualified institutional buyer”
within the meaning of Rule 144A under the Securities Act of 1933, as amended,
      and is aware that the sale to it is being made in reliance on Rule 144A and
      acknowledges that it has received such information regarding the Company as
      the
      undersigned has requested pursuant to Rule 144A or has determined not to request
      such information and that it is aware that the transferor is relying upon the
      undersigned’s foregoing representations in order to claim the exemption from
      registration provided by Rule 144A.

     

    
      Dated:  

        
          

        

         

      

      
        

        NOTICE: 
To
          be executed by an executive
          officer

      

    

     

     

    
 

    
      
        
        

      

      
        C-15

        
          

        

      

      
        
        

      

    

    OPTION
      OF
      HOLDER TO ELECT PURCHASE

     

    If
      you
      wish to have this Note purchased by the Company pursuant to Section 411 or
      415
      of the Indenture, check the box: [   ].

     

    If
      you
      wish to have a portion of this Note purchased by the Company pursuant to Section
      411 or 415 of the Indenture, state the amount (in principal amount)
      below:

     

    $________________

     

     

    Date: 

      

    

     

    Your
      Signature: 

      

    

     

    (Sign
      exactly as your name appears on the other side of this Note)

     

    Signature
      Guarantee: 

      

    

     

     

    Signatures
      must be guaranteed by an “eligible guarantor institution” meeting the
      requirements of the Note Registrar, which requirements include membership or
      participation in the Security Transfer Agent Medallion Program (“STAMP”)
      or
      such other “signature guarantee program” as may be determined by the Note
      Registrar in addition to, or in substitution for, STAMP, all in accordance
      with
      the Securities Exchange Act of 1934, as amended.

     

     

    

    
      
        
        

      

      
        C-16

        
          

        

      

      
        
        

      

    

    SCHEDULE
      OF INCREASES OR DECREASES IN GLOBAL NOTE

     

    The
      following increases or decreases in this Global Note have been
      made:

     

    
      	
              Date
                of Exchange 

            	
              Amount
                of decreases in Principal Amount of this Global Note

            	
              Amount
                of increases in Principal Amount of this Global Note

            	
              Principal
                amount of this Global Note following such decreases or
                increases

            	
              Signature
                of authorized officer of Trustee or Notes Custodian

            
	 	 	 	 	 

    

     

     

    
      
        
        

      

      
        C-17

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