Document:

Exhibit 4.2

 

CONFORMED COPY

 

GUARANTEE

 

Effective Date:    December 21, 2007

 

To induce
Lombard North Central plc (the Counterparty)
(a) to provide a committed vehicle leasing facility to Hertz (UK) Limited,
a corporation organized under the laws of England and having its registered
office at Hertz House, 11 Vine Street, Uxbridge, Middlesex UK (the Obligor), as described in the Terms of
Offer between the Counterparty and the Obligor dated December 20, 2007
(subject to such changes as may be agreed between the Counterparty and the
Obligor) and (b) to purchase the Obligor’s current vehicle rental fleet
and to lease back said rental fleet to the Obligor on terms consistent with the
Terms of Offer (the Initial Transaction)
(said Terms of Offer, any definitive agreement pertaining to the Initial
Transaction, and any definitive facilities agreement entered into pursuant to
the Terms of Offer are hereinafter referred to as an Agreement and collectively as the Agreements), Hertz International, Ltd. (the Guarantor), having its principal office at
225 Brae Boulevard, Park Ridge, New Jersey, USA hereby unconditionally and
irrevocably guarantees to the Counterparty as primary obligor and not merely as
surety the due and punctual payment of all sums owed by the Obligor to the
Counterparty pursuant to the Agreements (and any rental agreements entered into
under any of the Agreements) when due and payable, whether on demand, at stated
maturity, by acceleration or otherwise, and whether for principal, interest,
fees, expenses, indemnification or other amounts due at the time payment is
demanded from the Guarantor (collectively, the Obligations).  The term Obligations includes any and all
obligations of the Obligor, now or hereafter made, incurred or created, whether
absolute or contingent, liquidated or unliquidated, whether due or not due, and
however arising under or in connection with the Agreements, this Guarantee and
any other documents executed in furtherance of the transactions contemplated by
the Agreements.  The Guarantor agrees
that, as between the Guarantor and the Counterparty, the Obligations may be
declared to be due and payable for the purposes of this Guarantee
notwithstanding any stay (including amounts that would become due but for the
operation of the automatic stay under Section 362(a) of Title 11 of
the United States Code, the Bankruptcy Law),
injunction or other prohibition which may prevent, delay or vitiate any
declaration as regards the Obligor and that in the event of such declaration or
attempted declaration, the Obligations shall immediately become due and payable
by the Guarantor for the purposes of this Guarantee.  This Guarantee is a guarantee of payment and
not of collection.

 

The Guarantor guarantees that the Obligations shall be paid strictly in
accordance with the terms of the Agreements. 
The liability of the Guarantor hereunder is absolute and unconditional
irrespective of (i) any lack of capacity of the Obligor, (ii) any
lack of validity, regularity or enforceability of any provision of the Agreements,
(iii) the absence of any action to enforce the same, (iv) any
variation, extension, waiver, compromise or release of any or all of the
obligations of the Obligor under the Agreements or of any security from time to
time therefor or of the obligations of any other guarantor or surety, (v) the
recovery of any judgment against the Obligor, or (vi) any defense, setoff
or counterclaim with respect to the Agreement, this Guarantee and the
transactions contemplated hereby or any other circumstance which might
constitute a defense available to, or discharge of, the Obligor or a guarantor.

 

The Guarantor hereby represents and warrants that: (a) this
Guarantee is a legal, valid and binding obligation of the Guarantor enforceable
against the Guarantor in accordance with its terms, except to the extent that
such enforcement may be limited by applicable bankruptcy, insolvency and other
similar laws affecting creditors’ rights generally; (b) the execution
delivery and performance by the Guarantor of this Guarantee have been
authorised by all necessary corporate action and do not and will not contravene
the Guarantor’s organisational documents or any applicable law or any
contractual provision binding on or affecting it and (c) there are no
actions, suits or proceedings pending or, to the knowledge of the Guarantor,
threatened, against or affecting the Guarantor before any court,

 

1

 

governmental agency or arbitrator, which are reasonably likely to be
adversely determined and which if adversely determined may, in any one case or
in the aggregate, materially adversely affect the financial condition,
operations, properties or business of the Guarantor or of the ability of the
Guarantor to perform its obligations under the Guarantee.

 

The Guarantor hereby waives notice of acceptance of this Guarantee;
diligence; presentment; protect; notice of protect with respect to any
Obligation, acceleration, and dishonour; filing of claims with a court in the
event of merger, insolvency or bankruptcy of the Obligor; all demands
whatsoever including demand of payment, except as noted herein; and any right
to require a proceeding first against the Obligor, any exchange, sale or
surrender of, or realisation on, any other guarantee or any collateral.

 

The Guarantor and the Counterparty hereby confirm that it is the
intention of all such parties that the guarantee by the Guarantor hereunder not
constitute a fraudulent transfer or conveyance for purposes of the Bankruptcy
Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act
or any similar Federal or state law.  To
effectuate the foregoing intention, the Counterparty and the Guarantor hereby
irrevocably agree that the obligations of the Guarantor hereunder shall be
limited to the maximum amount as will, after giving effect to all other
contingent and fixed liabilities of Guarantor, result in the obligations of the
Guarantor hereunder not constituting such fraudulent transfer or conveyance.

 

Notwithstanding any payments which may be made hereunder by the
Guarantor, the Guarantor shall not be subrogated to the rights of the
Counterparty with respect to the Obligations, and shall not seek reimbursement
of such payments from the Obligor, until all the Obligations have been fully
paid.

 

This Guarantee is a continuing guarantee of all Obligations now or
hereafter existing and shall remain in full force and effect until all
Obligations have been fully and effectively paid and discharged in full.  Notices to the Counterparty may be delivered
by first class mail, postage prepaid or by overnight delivery service, to the
Counterparty at the following address:

 

Lombard North
Central plc

280
Bishopsgate

London EC2M
4RB

Attention:  Richard Perry

 

This Guarantee shall continue to be effective or be reinstated, as the
case may be, if at any time any payment of any of the Obligations is rescinded
or must otherwise be returned by the Counterparty on the insolvency, bankruptcy
or reorganisation of the Obligor or otherwise, all as though the payment had
not been made.

 

The Guarantor shall reimburse the Counterparty on demand for all
reasonable costs, expenses and charges (including without limitation reasonable
fees and charges of legal counsel for the Counterparty) incurred by the
Counterparty in connection with the enforcement of this Guarantee provided,
that the Guarantor shall not be liable for any such expenses of the
Counterparty if no payment under this Guarantee is due.  The obligations of the Guarantor under this
provision shall survive the termination of this Guarantee.

 

If any
sum due from the Guarantor under this Guarantee (a Sum), or any order, judgment or award given or made in
relation to a Sum, has to be converted from the currency (the First Currency) in which that Sum is
payable into another currency (the Second
Currency) for the purpose of:

 

(a)           making or filing a claim or proof
against the Guarantor; or

 

(b)                                obtaining or enforcing an
order, judgment or award in relation to any litigation or arbitration
proceedings,

 

the Guarantor shall, as an independent obligation, within three
Business Days of demand, indemnify the Counterparty against any cost, loss or
liability arising out of or as a result of the conversion including any
discrepancy between (i) the rate of exchange used to convert that Sum from
the First 

 

2

 

Currency into the Second Currency and (ii) the rate or rates of
exchange available to that person at the time of its receipt of that Sum.

 

The
Guarantor waives any right it may have in any jurisdiction to pay any amount
under this Guarantee in a currency or currency unit other than that in which it
is expressed to be payable.

 

This Guarantee shall be governed by the laws or the State of New York
without regard to conflict of laws principles. 
The Guarantor consents to the non-exclusive jurisdiction and venue of
the state or federal courts located in the City of New York in connection with
this Guarantee.  THE GUARANTOR WAIVES ANY RIGHT THE GUARANTOR MAY HAVE
TO JURY TRIAL IN CONNECTION WITH THIS GUARANTEE.  Nothing herein shall be deemed in
any way to limit the ability of the counterparty to serve any legal process in
any other manner permitted by law or to obtain jurisdiction over the Guarantor
or to bring actions, suits or proceedings against it in any other jurisdiction.

 

 

	
  Hertz International, Ltd

  	
   

  	
  225 Brae Boulevard, Park Ridge

  
	
   

  	
   

  	
  New Jersey

  
	
   

  	
   

  	
  USA

  

 

 

	
  By:

  	
    /s/ JIM MCGILL

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   JIM MCGILL

  	
   

  
	
  Title:

  	
  Authorised Signatory

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/ NUNS MOODLIAR

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   NUNS MOODLIAR

  	
   

  
	
  Title:

  	
  Authorised Signatory

  	
   

  

 

3Exhibit 4.3

 

AFFIRMATION OF GUARANTOR

 

The
undersigned has guaranteed obligations of Hertz (UK) Limited, a corporation
organized under the laws of England (the “Obligor”)
to Lombard North Central Plc (the “Bank”)
pursuant to the terms of a certain Guarantee dated as of December 21, 2007
(the “Guarantee”).  The undersigned acknowledges that it has
received copies of a certain Override Agreement dated as of March  2008
and a certain Letter of Understanding dated as of August 18, 1997 (the “Documents”) that would give effect to a
certain committed vehicle leasing facility for the Obligor referenced in the
Guarantee.  The undersigned agrees and
acknowledges that by and subject to the terms and conditions of the Guarantee the
undersigned continues to guarantee obligations of the Obligor to the Bank under
the Guarantee including without limitation relating to the Documents, subject
to the limitations, as applicable, in the Guarantee.  The undersigned hereby confirms that the Guarantee
remains in full force and effect, enforceable against the undersigned in
accordance with its terms and as set forth herein.

 

 

Dated as of 25
March, 2008.

 

 

	
   

  	
  HERTZ INTERNATIONAL, LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ JIM
  MCGILL

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  And By

  	
  /s/ NUNS
  MOODLIAR

  
				

 

1

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