Document:

Exhibit
10.13

 

WARRANT SUBSCRIPTION AGREEMENT

 

WARRANT SUBSCRIPTION AGREEMENT (this “Agreement”) made as of this [      ]th day of [      ],
2008 by and between K Road Acquisition Corporation, a Delaware corporation (the
“Company”), having its principal place
of business at 330 Madison Avenue, New York, New York 10017, and K Road
Acquisition Holdings LLC (“Subscriber”),
having its principal place of business at 330 Madison Avenue, New York, New
York 10017.

 

WHEREAS, the Company desires to sell in a
private placement (the “Offering”) an
aggregate of 7,750,000 warrants (the “Insider  Warrants”) of the Company for a purchase price of $1.00 per
Insider Warrant.  Each Insider Warrant
shall entitle the holder thereof to purchase one share of common stock of the
Company, par value $0.0001 per share (the “Common Stock”),
at an exercise price of $7.50, in accordance with the terms of the Insider
Warrant as set forth in the Warrant Agreement (the “Warrant
Agreement”), annexed hereto as Exhibit A,  to be entered into by and between the Company
and K Road Acquisition Holdings LLC and shall be subject to the terms of the
Warrant Agreement upon execution thereof.

 

WHEREAS, Subscriber wishes to purchase the
Insider Warrants and the Company wishes to accept such subscription.

 

NOW, THEREFORE, in consideration of the
premises and the mutual covenants hereinafter set forth and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and Subscriber hereby agree as follows.

 

1.  Agreement to Subscribe.

 

1.1.  Purchase
and Issuance of the Insider Warrants. 
Upon the terms and subject to the conditions of this Agreement,
Subscriber hereby agrees to purchase from the Company, and the Company hereby
agrees to sell to the Subscriber, on the Closing Date, the Insider Warrants for
an aggregate purchase price of $7,750,000 (the “Purchase
Price”).

 

1.2.  Delivery
of the Purchase Price.  Upon
execution of this Agreement, the undersigned is hereby bound to fulfill its
obligations hereunder and hereby irrevocably commits to deliver into a trust
account at a financial institution to be chosen by the Company, maintained by
Continental Stock Transfer & Trust Company, acting as Trustee, on the
date of Closing (as hereinafter defined), the Purchase Price in immediately
available funds by certified bank check, wire transfer or such other form of
payment as shall be acceptable to the Trustee, in its sole and absolute
discretion, at the Closing.

 

1.3.  Closing.  The closing (the “Closing”)
of the Offering, shall take place at the offices of the Company, immediately
prior to the effective date of the registration statement (the “Closing Date”) relating to the Company’s initial public
offering of 30,000,000 Units (the “IPO”).

 

2. Representations
and Warranties of the Subscriber.  To
induce the Company to issue the Insider Warrants to the Subscriber, the
Subscriber hereby represents and warrants to the Company and agrees with the
Company as follows:

 

2.1.                                             No
Government Recommendation or Approval.  The Subscriber understands that no United
States federal or state agency or similar agency of any other country, has
passed upon

 

 

or made any recommendation or endorsement of the
offering of the Insider Warrants or underlying Common Stock (the “Warrant Shares” and, collectively with the Insider Warrants,
the “Securities”).

 

2.2.                                             Experience,
Financial Capability and Suitability.  The Subscriber is sufficiently experienced in
financial and business matters to be capable of evaluating the merits and risks
of this investment and to make an informed decision relating thereto. The
Subscriber is aware its investment in the Company is a speculative investment
that has limited liquidity, because there may never be an established market
for the Company’s securities.  The Subscriber
has the financial capability for making the investment and the investment is a
suitable one for the Subscriber.  The
Subscriber can, without impairing its financial condition, hold the Insider
Warrants for an indefinite period of time and can afford a complete loss of the
investment. The Subscriber acknowledges that the Company has urged the
Subscriber to seek independent advice from professional advisors relating to
the suitability of an investment in the Company and in connection with this Agreement,
and that the Subscriber has sought and received such independent professional
advice with respect to such investment and this Agreement or, after careful
consideration, the Subscriber has determined to waive its right to seek and/or
receive such independent professional advice.

 

2.3.                                             Access
to Information.   Prior to the execution of this Agreement,
the Subscriber has had the opportunity to ask questions of and receive answers
from representatives of the Company concerning an investment in the Company, as
well as the finances, operations, business and prospects of the Company, and
the opportunity to obtain additional information to verify the accuracy of all
information so obtained.

 

2.4.                                             Regulation
D Offering.  Subscriber represents that it is an “accredited investor” as such term is
defined in Rule 501(a) of Regulation D under the Securities
Act of 1933, as amended (the “Securities Act”) and acknowledges the sale contemplated hereby is being made in
reliance on a private placement exemption to “Accredited Investors” within the
meaning of Section 501(a) of Regulation D under the Securities Act or
similar exemptions under state law; and, accordingly, the Securities will be “restricted
securities” within the meaning of Rule 144(a)(3) under the Securities
Act, and therefore may not be offered, pledged or sold by Subscriber, directly
or indirectly, in the United States without registration under United States
federal and state securities laws and Subscriber understands the certificates
representing such Securities will contain a legend in respect of such
restrictions.

 

2.5.                                             Investment
Purposes.  Subscriber is purchasing
the Insider Warrants solely for investment purposes, for the Subscriber’s own
account and not for the account or benefit of any U.S. Person, and not with a
view towards the distribution thereof and Subscriber has no present arrangement
to sell the Insider Warrants to or through any person or entity. Subscriber
shall not engage in hedging transactions with regard to the Insider Warrants
unless in compliance with the Securities Act.

 

2.6.                                             Restrictions
on Transfer. Subscriber understands the Insider Warrants are being offered
in a transaction not involving a public offering within the meaning of the
Securities Act. The Insider Warrants have not been registered under the
Securities Act, and, if in the future the

 

2

 

Subscriber decides to offer, resell, pledge or otherwise transfer the
Insider Warrants, such Insider Warrants may be offered, resold, pledged or
otherwise transferred only (A) pursuant to an effective registration
statement filed under the Securities Act, (B) pursuant to an exemption
from registration under Rule 144 promulgated under the Securities Act, if
available, or (C) pursuant to any other exemption from the registration
requirements of the Securities Act, and in each case in accordance with any
applicable securities laws of any state or any other jurisdiction.  Subscriber agrees that if any transfer of its
Insider Warrants or any interest therein is proposed to be made, as a condition
precedent to any such transfer, Subscriber may be required to deliver to the
Company an opinion of counsel satisfactory to the Company.  Absent registration or another exemption from
registration, the Subscriber agrees that it will not resell the Insider
Warrants.  Subscriber further understands
and acknowledges the Securities and Exchange Commission (the “SEC”) has taken
the position the Subscriber would be considered a promoter under the Securities
Act and that promoters or affiliates of a blank check company and their
transferees, both before and after a business combination, would act as “underwriters”
under the Securities Act when reselling the securities of that blank check
company.  Accordingly, Rule 144
promulgated under the Securities Act will not be available to the Subscriber
for the resale of the Insider Warrants despite technical compliance with the
requirements of Rule 144, in which event the resale transactions would
need to be made through a registered offering.

 

2.7                                                Due
Authorization. Subscriber is an entity duly organized, validly existing and
in good standing under the laws of the jurisdiction of its organization with
full right, corporate or partnership power and authority to enter into and to
consummate the transaction contemplated by this Agreement and otherwise to
carry out its obligations hereunder and thereunder.  The execution and delivery of this Agreement
and performance by Subscriber of the transactions contemplated by this Agreement
have been duly authorized by all necessary corporate or similar action on the
part of Subscriber.

 

3. Representations
and Warranties of the Company. 
The Company represents and warrants to Subscriber that:

 

3.1.  Valid
Issuance of Capital Stock.  The total
number of shares of all classes of capital stock which the Company will have
authority to issue is 120,000,000 shares of Common Stock and 1,000,000 shares
of Preferred Stock.  As of the date
hereof, the Company has 8,625,000 shares of Common Stock (of which 1,125,000
shares are subject to forfeiture as described in the registration statement
related to the Company’s IPO) and no shares of Preferred Stock issued and
outstanding.  All of the issued shares of
capital stock of the Company have been duly authorized, validly issued, and are
fully paid and non-assessable.

 

3.2.  Organization
and Qualification.  The Company is a
corporation duly incorporated and existing in good standing under the laws of
the state of Delaware and has the requisite corporate power to own its
properties and assets and to carry on its business as now being conducted.

 

3.3.  Authorization;
Enforcement.  (i) The Company
has the requisite corporate power and authority to enter into and perform its
obligations under this Agreement and to issue the Insider Warrants and the
Warrant Shares in accordance with the terms hereof, (ii) the execution,
delivery and performance of this Agreement by the Company and the consummation
by it of the transactions contemplated hereby have been duly authorized by all
necessary corporate action, and no further consent or authorization of the
Company or its Board of Directors or stockholders

 

3

 

is required, and (iii) this Agreement constitutes valid and binding
obligations of the Company enforceable against the Company in accordance with
its terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, fraudulent conveyance, moratorium, reorganization, or
similar laws relating to, or affecting generally the enforcement of, creditors’
rights and remedies or by equitable principles of general application and
except as enforcement of rights to indemnity and contribution may be limited by
federal and state securities laws or principles of public policy.

 

3.4.  No
Conflicts.  The execution, delivery
and performance of this Agreement and the consummation by the Company of the
transactions contemplated hereby do not (i) result in a violation of the
Company’s Amended and Restated Certificate of Incorporation or Bylaws or (ii) conflict
with, or constitute a default under any agreement, indenture or instrument to
which the Company is a party.  The
Company is not required under federal, state or local law, rule or
regulation to obtain any consent, authorization or order of, or make any filing
or registration with, any court or governmental agency or self-regulatory
entity in order for it to perform any of its obligations under this Agreement
or issue the Warrant Shares in accordance with the terms hereof.

 

4. Legends.

 

4.1.  Legend.  The Company will issue the Insider Warrants,
and when issued, the Warrant Shares, purchased by the Subscriber in the name of
the Subscriber.  The Securities will bear
the following Legend and appropriate “stop transfer” instructions:

 

“THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND
NEITHER THE SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD,
TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR SUCH LAWS OR AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT AND SUCH LAWS WHICH, IN THE OPINION
OF COUNSEL FOR THIS CORPORATION, IS AVAILABLE.”

 

THE SECURITIES
REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND CONDITIONS
CONTAINED IN A SECURITIES ESCROW AGREEMENT (THE “AGREEMENT”) AND MAY NOT
BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED DURING THE TERM OF
THE ESCROW PERIOD (AS DEFINED IN THE AGREEMENT).”

 

4.2.  Subscriber’s
Compliance.  Nothing in this Section 4
shall affect in any way the Subscribers’ obligations and agreements to comply
with all applicable securities laws upon resale of the Securities.

 

4.3.  Company’s
Refusal to Register Transfer of the Securities.  The Company shall refuse to register any
transfer of the Securities, if in the sole judgment of the Company such
purported transfer would not be made (i) pursuant to an effective
registration statement filed under the Securities Act, or (ii) pursuant to
an available exemption from the registration requirements of the Securities
Act.

 

4

 

5.  Escrow. 
Upon consummation of the IPO, the Subscriber shall enter into the
Securities Escrow Agreement, whereby the Insider Warrants shall be held in
escrow until one day following consummation of a Business Combination.

 

6. Securities
Laws Restrictions.  In
addition to the restrictions contained in the Escrow Agreement, Subscriber
agrees not to sell, transfer, pledge, hypothecate or otherwise dispose of all
or any part of the Securities unless, prior thereto (a) a registration
statement on the appropriate form under the Securities Act and applicable state
securities laws with respect to the Securities proposed to be transferred shall
then be effective or (b) the Company shall have received an opinion from
counsel reasonably satisfactory to the Company, that such registration is not
required because such transaction complies with the Securities Act and the rules promulgated
by the SEC thereunder and with all applicable state securities laws.

 

7.  Waiver of Liquidation Distributions.  In connection with the Securities purchased
pursuant to this Agreement, and with respect to any Common Stock purchased by
Subscriber prior to the private placement, Subscriber hereby waives any and all
right, title, interest or claim of any kind in or to any liquidating
distributions by the Company in the event of a liquidation of the Company upon
the Company’s failure to timely complete a Business Combination or
otherwise.  For purposes of clarity, in
the event Subscriber purchases shares of Common Stock in the IPO or in the
aftermarket, any additional shares so purchased shall be eligible to receive
any liquidating distributions by the Company.

 

8.  Forfeiture of Insider
Warrants.

 

8.1.  Failure
to Consummate Business Combination. 
The Warrants shall be forfeited to the Company in the event that the
Company does not consummate a Business Combination within 24 months from the
consummation of the IPO (or 30 months from the consummation of the IPO if the
Extension Amendment is approved as set forth in the Amended and Restated
Certificate of Incorporation of the Company).

 

8.2.  Termination
of Rights as holder; Escrow.  If the
Insider Warrants are forfeited in accordance with this Section 8, then
after such time the Subscriber (or successor in interest), shall no longer have
any rights as a holder of such Insider Warrants, and the Company shall take
such action as is appropriate to cancel such Insider Warrants.  To effectuate the foregoing, all certificates
representing the Insider Warrants shall be held in escrow as provided in Section 5
hereof.  In addition, Subscriber hereby
irrevocably grants the Company a limited power of attorney for the purpose of
effectuating the foregoing.

 

9. Rescission
Right Waiver and Indemnification.

 

9.1. 
Subscriber understands and acknowledges an exemption from the
registration requirements of the Securities Act requires there be no general
solicitation of purchasers of the Insider Warrants.  In this regard, if the IPO were deemed to be
a general solicitation with respect to the Insider Warrants, the offer and sale
of such Insider Warrants may not be exempt from registration and, if not, the
Subscriber may have a right to rescind its purchase of the Insider
Warrants.  In order to facilitate the
completion of the Offering and in order to protect the Company, its stockholders
and the trust account from claims that may adversely affect the Company or the
interests of its stockholders, Subscriber hereby agrees to waive, to the
maximum extent permitted by applicable law, any claims, right to sue or rights
in law or arbitration, as the

 

5

 

case may be, to seek rescission of its purchase of the Insider
Warrants.  Subscriber acknowledges and
agrees this waiver is being made in order to induce the Company to sell the
Insider Warrants to the Subscriber. 
Subscriber agrees the foregoing waiver of rescission rights shall apply
to any and all known or unknown actions, causes of action, suits, claims or
proceedings (collectively, “Claims”) and
related losses, costs, penalties, fees, liabilities and damages, whether
compensatory, consequential or exemplary, and expenses in connection therewith,
including reasonable attorneys’ and expert witness fees and disbursements and
all other expenses reasonably incurred in investigating, preparing or defending
against any Claims, whether pending or threatened, in connection with any
present or future actual or asserted right to rescind the purchase of the
Insider Warrants hereunder or relating to the purchase of the Insider Warrants
and the transactions contemplated hereby.

 

9.2. 
Subscriber agrees not to seek recourse against the trust account for any
reason whatsoever in connection with its purchase of the Insider Warrants or
any Claim that may arise now or in the future.

 

9.3. 
Subscriber acknowledges and agrees the stockholders of the Company and
Credit Suisse Securities (USA) LLC are and shall be third-party beneficiaries
of the foregoing provisions of this Agreement.

 

9.4. 
Subscriber agrees that to the extent any waiver of rights under this Section 9
is ineffective as a matter of law, Subscriber has offered such waiver for the
benefit of the Company as an equitable right that shall survive any statutory
disqualification or bar that applies to a legal right.  Subscriber acknowledges the receipt and sufficiency
of consideration received from the Company hereunder in this regard.

 

10.  Terms of the Insider
Warrant.  The Insider Warrants are substantially
identical to the warrants included in the Units offered in the IPO, except: (i) they
will be placed in escrow and not released until one day following the
consummation of a Business Combination, (ii) they are being purchased
pursuant to an exemption from the registration requirements of the Securities
Act and will become freely tradable only after they are registered pursuant to
a registration rights agreement to be signed on or before effective date of the
registration statement relating to the Company’s IPO, and (iii) they will
be non-redeemable so long as they are held by the Subscriber or its permitted
transferees .  In no event will the Company
be required to net cash settle the Insider Warrant exercise.

 

11.  Governing Law; Jurisdiction; Waiver of Jury Trial.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware for agreements
made and to be wholly performed within such state.  The parties hereto hereby waive any right to
a jury trial in connection with any litigation pursuant to this Agreement and
the transactions contemplated hereby.

 

12.  Assignment; Entire Agreement; Amendment.

 

12.1.  Assignment.  Neither this Agreement nor any rights
hereunder may be assigned by any party to any other person other than by
Subscriber to a person agreeing to be bound by the terms hereof.

 

6

 

12.2.  Entire
Agreement.  This Subscription
Agreement sets forth the entire agreement and understanding between the parties
as to the subject matter thereof and merges and supersedes all prior
discussions, agreements and understandings of any and every nature among them.

 

12.3.  Amendment.  Except as expressly provided in this
Agreement, neither this Agreement nor any term hereof may be amended, waived,
discharged or terminated other than by a written instrument signed by the party
against whom enforcement of any such amendment, waiver, discharge or
termination is sought.

 

12.4.  Binding
upon Successors.  This Agreement
shall be binding upon and inure to the benefit of the parties hereto and to
their respective heirs, legal representatives, successors and permitted
assigns.

 

13.  Notices; Indemnity.

 

13.1  Notices.  Unless otherwise provided herein, any notice
or other communication to a party hereunder shall be sufficiently given if in
writing and personally delivered or sent by facsimile or other electronic
transmission with copy sent in another manner herein provided or sent by
courier (which for all purposes of this Agreement shall include Federal Express
or other recognized overnight courier) or mailed to said party by certified
mail, return receipt requested, at its address provided for herein or such
other address as either may designate for itself in such notice to the
other.  Communications shall be deemed to
have been received when delivered personally, on the scheduled arrival date
when sent by next day or 2-day courier service, or if sent by facsimile upon
receipt of confirmation of transmittal or, if sent by mail, then three days
after deposit in the mail.  If given by
electronic transmission, such notice shall be deemed to be delivered (a) if
by electronic mail, when directed to an electronic mail address at which the
stockholder has consented to receive notice; (b) if by a posting on an
electronic network together with separate notice to the stockholder of such
specific posting, upon the later of (1) such posting and (2) the
giving of such separate notice; and (c) if by any other form of electronic
transmission, when directed to the stockholder.

 

13.2  Indemnification.  Each party shall indemnify the other against
any loss, cost or damages (including reasonable attorney’s fees and expenses)
incurred as a result of such party’s breach of any representation, warranty,
covenant or agreement in this Agreement.

 

14.  Counterparts.  This Agreement may be executed in one or more
counterparts, all of which when taken together shall be considered one and the
same agreement and shall become effective when counterparts have been signed by
each party and delivered to the other party, it being understood that both
parties need not sign the same counterpart. 
In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create
a valid and binding obligation of the party executing (or on whose behalf such
signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

 

15.  Survival; Severability.

 

15.1.  Survival.  The representations, warranties, covenants
and agreements of the parties hereto shall survive the Closing.

 

7

 

15.2.  Severability.  In the event that any provision of this
Agreement becomes or is declared by a court of competent jurisdiction to be
illegal, unenforceable or void, this Agreement shall continue in full force and
effect without said provision; provided that no such severability shall be
effective if it materially changes the economic benefit of this Agreement to
any party.

 

16. Headings.  The titles and subtitles used in this
Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

 

8

 

This subscription is accepted by the Company
on the 30th day of January, 2008.

 

 

	
   

  	
  K Road Acquisition Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  William V. Kriegel

  
	
   

  	
   

  	
  Chairman of
  the Board, President

  and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  K Road Acquisition Holdings LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  William V. Kriegel

  
	
   

  	
   

  	
  Managing Member

  

 

9Exhibit 4.1

 

 

CONFORMED
COPY

 

 

Override Agreement

 

 

Dated                25 MARCH 2008

 

 

Hertz
UK Limited

 

Lombard
North Central Plc

 

 

Denton
Wilde Sapte LLP

One Fleet Place

London EC4M 7WS

United Kingdom

T +44 (0)20 7242 1212

F +44 (0)20 7246 7777

Telex 887793

DX 242

 

info@dentonwildesapte.com

www.dentonwildesapte.com

 

International
Lawyers

 

 

Contents

 

	
  1

  	
  Definitions and Interpretation

  	
  1

  
	
  1.1

  	
  Definitions

  	
  1

  
	
  1.2

  	
  Interpretation

  	
  7

  
	
  1.3

  	
  Agreements
  and Statutes

  	
  8

  
	
  1.4

  	
  Headings

  	
  8

  
	
  1.5

  	
  Time

  	
  8

  
	
  1.6

  	
  Third Party
  Rights

  	
  8

  
	
   

  	
   

  	
   

  
	
  2

  	
  Effective Date

  	
  8

  
	
   

  	
   

  	
   

  
	
  3

  	
  The LoU

  	
  8

  
	
   

  	
   

  	
   

  
	
  4

  	
  Availability of the Facility

  	
  8

  
	
  4.1

  	
  The Facility

  	
  8

  
	
  4.2

  	
  Commitment
  Period

  	
  9

  
	
  4.3

  	
  Available
  Facility

  	
  9

  
	
  4.4

  	
  LCV
  sub-limit

  	
  9

  
	
  4.5

  	
  Commercial
  terms

  	
  9

  
	
  4.6

  	
  Potential
  Events of Default

  	
  9

  
	
   

  	
   

  	
   

  
	
  5

  	
  Changes in Circumstances and Adverse Tax Change

  	
  10

  
	
  5.1

  	
  Application
  of Clause

  	
  10

  
	
  5.2

  	
  Negotiations

  	
  10

  
	
  5.3

  	
  Cancellation
  and Exit Fee

  	
  10

  
	
   

  	
   

  	
   

  
	
  6

  	
  Representations and Warranties

  	
  10

  
	
  6.1

  	
  Reliance

  	
  10

  
	
  6.2

  	
  Status

  	
  11

  
	
  6.3

  	
  Binding
  obligations

  	
  11

  
	
  6.4

  	
  Non-conflict
  with other obligations

  	
  11

  
	
  6.5

  	
  Power and
  authority

  	
  11

  
	
  6.6

  	
  Validity and
  admissibility in evidence

  	
  11

  
	
  6.7

  	
  Governing
  law and enforcement

  	
  11

  
	
  6.8

  	
  No
  misleading information

  	
  12

  
	
  6.9

  	
  Financial
  statements

  	
  12

  
	
  6.10

  	
  Group
  Structure

  	
  12

  
	
  6.11

  	
  Insolvency

  	
  12

  
	
  6.12

  	
  No default

  	
  12

  
	
  6.13

  	
  No proceedings
  pending or threatened

  	
  13

  
	
  6.14

  	
  Environmental Laws

  	
  13

  
	
  6.15

  	
  Repetition

  	
  13

  
	
   

  	
   

  	
   

  
	
  7

  	
  Information Undertakings

  	
  13

  
	
  7.1

  	
  Annual
  Statements

  	
  13

  
	
  7.2

  	
  Monthly
  Management Statements

  	
  13

  
	
  7.3

  	
  Compliance
  Certificates

  	
  14

  
	
  7.4

  	
  Operating
  Plan

  	
  14

  
	
  7.5

  	
  Information
  to Shareholders

  	
  14

  
	
  7.6

  	
  Group
  structure

  	
  14

  
	
  7.7

  	
  Notification of default

  	
  14

  
	
  7.8

  	
  Information
  on request

  	
  15

  
	
   

  	
   

  	
   

  
	
  8

  	
  General Undertakings

  	
  15

  
	
  8.1

  	
  Negative
  Pledge

  	
  15

  
	
  8.2

  	
  Licensing

  	
  15

  

 

i

 

	
  8.3

  	
  Systems and
  records

  	
  15

  
	
  8.4

  	
  Change of
  business

  	
  15

  
	
  8.5

  	
  Insolvency
  Regulation

  	
  15

  
	
  8.6

  	
  Environmental
  compliance

  	
  16

  
	
  8.7

  	
  Data
  protection, etc.

  	
  16

  
	
   

  	
   

  	
   

  
	
  9

  	
  Financial Covenants

  	
  16

  
	
  9.1

  	
  Covenants

  	
  16

  
	
  9.2

  	
  Change in
  accounting reference date, policies, etc.

  	
  16

  
	
   

  	
   

  	
   

  
	
  10

  	
  Default

  	
  17

  
	
  10.1

  	
  Events of
  Default

  	
  17

  
	
  10.2

  	
  Separate
  nature

  	
  18

  
	
  10.3

  	
  Cancellation,
  etc.

  	
  18

  
	
   

  	
   

  	
   

  
	
  11

  	
  Fees and Costs

  	
  19

  
	
  11.1

  	
  Commitment
  Fee

  	
  19

  
	
  11.2

  	
  Arrangement
  Fee

  	
  19

  
	
  11.3

  	
  Costs

  	
  19

  
	
  11.4

  	
  Default
  interest

  	
  19

  
	
   

  	
   

  	
   

  
	
  12

  	
  Notices

  	
  20

  
	
  12.1

  	
  Communications
  in Writing

  	
  20

  
	
  12.2

  	
  Delivery

  	
  20

  
	
   

  	
   

  	
   

  
	
  13

  	
  Set off and counterclaim

  	
  20

  
	
  13.1

  	
  By Hertz

  	
  20

  
	
  13.2

  	
  By Lombard

  	
  20

  
	
   

  	
   

  	
   

  
	
  14

  	
  Waivers; remedies cumulative

  	
  20

  
	
   

  	
   

  	
   

  
	
  15

  	
  Severance

  	
  21

  
	
   

  	
   

  	
   

  
	
  16

  	
  Assignment

  	
  21

  
	
  16.1

  	
  No
  Assignment

  	
  21

  
	
  16.2

  	
  Benefit

  	
  21

  
	
   

  	
   

  	
   

  
	
  17

  	
  Counterparts

  	
  21

  
	
   

  	
   

  	
   

  
	
  18

  	
  Law

  	
  21

  
	
   

  	
   

  	
   

  
	
  Schedule 1 — Conditions Precedent

  	
  22

  
	
   

  	
   

  
	
  Schedule 2 - Financial Covenants

  	
  23

  
	
   

  	
   

  
	
  Schedule 3 – Data Protection, etc.

  	
  26

  
	
   

  	
   

  
	
  Schedule 4 – Guarantee Confirmation

  	
  28

  

 

ii

 

Lombard Override Agreement

 

Dated   
25 MARCH 2008

 

Between

 

(1)                                 Hertz UK Limited
registered in England with number 00597994 and whose registered office is at
Hertz House, 11 Vine Street, Uxbridge, Middlesex UB8 1QE (Hertz); and

 

(2)                                 Lombard North Central Plc registered in England with number 337004 and
whose registered office is at 3 Princess Way, Redhill RH1 1NP (Lombard).

 

Recitals

 

A                                     Lombard
provides a short term vehicle leasing facility to Hertz on an uncommitted basis
under the terms of the LoU.

 

B                                       Lombard has agreed to provide these leasing facilities on a committed
basis; and

 

C                                       Lombard and Hertz have agreed to enter into this Agreement to set
out the terms of that commitment, together with certain other matters.

 

It is agreed:

 

1                                        Definitions and Interpretation

 

1.1                              Definitions

 

In this Agreement the following definitions shall
apply.

 

Adverse Tax Change means any change (whether such change has occurred or is scheduled
to occur) (other than an Anticipated Tax Change) to:

 

(a)                                 fiscal
legislation applicable in the United Kingdom; or

 

(b)                                H.M.
Revenue & Customs practice

 

which in Hertz’s reasonable opinion results or will
result in the cost to Hertz of the availability or utilisation of the Facility
materially increasing (as compared to such cost if the relevant change did not
or will not occur).

 

Anticipated Tax Change means the reduction in the rates of corporation tax and writing
down allowances to 28% and 20% respectively in respect of vehicles of a type
which could be Financed Vehicles, as announced in the Budget 2007, to take
effect from April 2008.

 

Available Facility means on a given date:

 

(a)                                 the Facility Amount applicable at that date; less

 

(b)                                 the amount of Utilisations either existing at that date or which are
due to be made on or before that date.

 

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

 

1

 

Change of Control means:

 

(a)                               The Guarantor ceases to control directly or indirectly Hertz; or

 

(b)                              the Guarantor ceases to be controlled by Hertz Global Holdings, Inc.

 

For the purposes of this definition:

 

(x)                                 control of
Hertz means:

 

(i)                                    the power (whether by way of ownership of shares, proxy, contract,
agency or otherwise) to:

 

(1)                                cast,
or control the casting of, more than 50% of the maximum number of votes that
might be cast at a general meeting of Hertz; or

 

(2)                                appoint
or remove all, or the majority, of the directors or other equivalent officers
of Hertz; or

 

(3)                                give
directions with respect to the operating and financial policies of Hertz with
which the directors or other equivalent officers of Hertz are obliged to
comply; and/or

 

(ii)                                 the holding beneficially of more than 50% of the issued share
capital of Hertz (excluding any part of that issued share capital that carries
no right to participate beyond a specified amount in a distribution of either
profits or capital); and

 

(y)                                acting in concert means a group of persons who, pursuant to an agreement or
understanding (whether formal or informal), actively co-operate, through the
acquisition of shares in Hertz (or any holding company of Hertz) by any of
them, either directly or indirectly, to obtain or consolidate control of Hertz,

 

and controlled shall be
construed accordingly.

 

Change Notice means a written notice from Lombard to Hertz that Lombard considers
(in its discretion exercised in good faith) that there is, or it is reasonably
likely that there will be, a material adverse effect on Lombard’s ability to
provide, or to continue to provide the Facility, either at all or at the same
cost and with a comparable rate of return as a result of a change (whether such
change has occurred or is scheduled to occur) to:

 

(a)                                 fiscal legislation applicable in the United Kingdom;

 

(b)                                H.M. Revenue & Customs practice; or

 

(c)                                  accounting standards or the accounting treatment of the Facility
and/or the leases under the Rental Agreements in the books of Lombard,

 

(d)                                 or the interpretation or application of any of the same.

 

Compliance
Certificate
means a certificate substantially in the form set out in Part B of
Schedule 2 (Form of Compliance
Certificate).

 

Default means an Event of Default or a Potential Event of Default.

 

Effective Date means the date on which the written confirmation contemplated by
Clause 2 (Conditions Precedent)
has been given by Lombard .

 

2

 

Environment means ecological systems,
living organisms (including human beings) and all or any of the following media
(whether alone or in combination): air (including air within buildings or other
structures and whether above or below ground); land (including buildings and
any other structures or erections in, on or under it or any soil and anything
below the surface of the land); land covered with water; and water (including
water under or within land or in pipe or sewerage systems and sea, ground and
surface water).

 

Environmental
Claim means any claim, proceeding, formal
notice or investigation by any person in respect of any Environmental Law.

 

Environmental Law
means any applicable law or regulation which relates to:

 

(a)                                 the
pollution or protection of the Environment;

 

(b)                                harm
to or the protection of human health;

 

(c)                                 the
conditions of the workplace; or

 

(d)                                any
emission or substance capable of causing harm to any living organism or the
Environment.

 

Environmental Permit means any permit
and other authorisation and the filing of any notification, report or
assessment required under any Environmental Law for the operation of the
business of Hertz conducted on or from the properties owned or used by Hertz.

 

Event of Default means any event or circumstance specified as such in Clause 10.1 (Events of Default).

 

Facility means the facility provided pursuant to and on the terms of this
Agreement (together with the LoU).

 

Facility Amount means

 

(a)                                  for the period from the Effective Date to (and excluding) 1 May 2008, £135,000,000;

 

(b)                                 for the period from (and including)1 May 2008 to (and
excluding) 1 May 2009,
£175,000,000;

 

(c)                                  for the period from (and including) 1 May 2009 to (and excluding) 1 May 2010, £185,000,000;

 

(d)                                 for the period from (and including) 1 May 2010 to (and excluding) 1 May 2011, £195,000,000;

 

(e)                                  for the period from (and including) 1 May 2011 to (and excluding) 1 May 2012, £205,000,000; and

 

(f)                                    for the period from (and including) 1 May 2012 to (and including) the Termination Date,
£215,000,000.

 

Financed Vehicles means any vehicle whose acquisition has been financed by Hertz
pursuant to this Agreement and a lease or hire purchase contract under the LoU
where such vehicle remains subject to such contract.

 

Financial Indebtedness means any indebtedness for or in respect of:

 

(a)                                  moneys borrowed;

 

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

 

3

 

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

 

(d)                               any amount raised pursuant to any issue of shares which are
expressed to be redeemable;

 

(e)                                the amount of any liability in respect of any lease or hire purchase
contract which would, in accordance with generally accepted accounting
principles in the relevant jurisdiction, be treated as a finance or capital
lease;

 

(f)                                  the amount of any liability in respect of any advance or deferred
purchase agreement if one of the primary reasons for entering into such
agreement is to raise finance;

 

(g)                               receivables sold or discounted (other than on a non-recourse basis);

 

(h)                               any agreement or option to re-acquire an asset if one of the primary
reasons for entering into such agreement or option is to raise finance;

 

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

 

(j)                                   the amount of any liability in respect of any guarantee or indemnity
for any of the items referred to in paragraphs (a) to (i) above,

 

save to the extent that such indebtedness directly
relates to Financed Vehicles.

 

Group means the Guarantor and its subsidiaries.

 

Guarantee means the guarantee dated 21 December 2007 from the Guarantor
in favour of Lombard.

 

Guarantee Confirmation means a confirmation from the Guarantor in respect of the Guarantee
in the form set out in Schedule 4.

 

Guarantor means Hertz International Limited.

 

IFRS means international accounting standards within the meaning of IAS
Regulation 1606/2002.

 

Increase Date means each date on which the Facility Amount is increased.

 

Increased Costs means the absolute value of:

 

(a)                                  any reduction in the rate of return from the Facility or on Lombard’s
(or its affiliate’s) overall capital;

 

(b)                                 any additional or increased cost; or

 

(c)                                  any reduction of any amount due and payable under any Rental
Agreement,

 

which is incurred or suffered by Lombard or any of its
affiliates to the extent that it is (i) attributable to Lombard having
entered into its commitment or funding or performing its obligations under any
of the Lombard Finance Documents and (ii) not attributable to the wilful
breach by Lombard or its affiliates of any law or regulation.

 

Initial Sale and Leaseback means the sale and leaseback transaction entered into between
Lombard and Hertz on 21 December 2007.

 

4

 

LCVs means light commercial vehicles, being vehicles which do not exceed
3.5 tonnes gross vehicle weight and which are supplied strictly in accordance
with the manufacturer’s standard specification.

 

LoU means
the letter of understanding dated 18 August 1997 made between Lombard and
Hertz, together with (i) any Rental Agreements issued thereunder and (ii) any
other documents entered into after the date of this Agreement between Lombard
and Hertz pursuant thereto.

 

Lombard Finance Documents means the LoU, this Agreement, the Guarantee and the Guarantee
Confirmation.

 

Material Adverse Effect means a material adverse effect (as judged by Lombard acting
reasonably) on (a) the ability of Hertz to comply with its obligations
under any Lombard Finance Document and (b) the business, financial
condition or assets of Hertz.

 

Obligors means Hertz and the Guarantor.

 

Original Financial
Statements means the audited financial statements (including all additional
information and notes to the accounts) together with the relevant directors’
report and auditors’ reports for Hertz’s financial year ended 31 December 2006.

 

Permitted Security means:

 

(a)                                  any lien in favour of a tax authority arising in respect of taxes
which are being contested by Hertz in good faith;

 

(b)                                 any Security arising under any retention of
title, hire purchase or conditional sale arrangement or arrangements having
similar effect in respect of goods supplied to Hertz in the ordinary course of
its day-to-day trading activities and on the supplier’s standard or usual terms
and not arising as a result of any default or omission by the Hertz;

 

(c)                                  any Security which arises under a finance lease to the extent such
finance lease is deemed to create Security under the applicable law;

 

(d)                                 any Security which secures Financial Indebtedness existing in
respect of any property or assets of any company (and not the shares thereof)
where such company’s assets and property or shares are acquired by Hertz
provided that (a) the relevant Security was not created in contemplation
of the acquisition, (b) the amount of Financial Indebtedness has not
increased in contemplation of or since such acquisition and (c) provided
that such Security is released within 90 days from the date of the relevant
acquisition;

 

(e)                                  any carriers’, warehousemans’, mechanics liens or similar Security arising
in the ordinary course of day-to-day trading activities and on the supplier’s
standard or usual terms and not as a result of any default or omission by Hertz
which are not overdue for a period of more than 60 days;

 

(f)                                    any Security arising under rent deposit deeds relating to leasehold
properties of Hertz;

 

(g)                                 any Security arising by reason of any judgment, decree or order of
any court or other governmental authority if proceedings have been duly
initiated for the review of such judgment, decree or order and are being
diligently pursued and shall not have been finally determined;

 

(h)                                 any netting, set off or similar arrangement arising under cash
pooling arrangements entered into by Hertz in the normal course of its banking
arrangements; and

 

(i)                                     any Security securing Financial Indebtedness either (i) owing
to any other finance lessor in respect of vehicle leasing facilities or (ii) arising
directly in connection with 

 

5

 

receivables
sold or discounted on a recourse basis, PROVIDED THAT the aggregate principal
amount of such Financial Indebtedness (when aggregated with the principal
amount of any other Financial Indebtedness which has the benefit of Security
other than as permitted pursuant to paragraphs (a) to (h)) does not exceed
£70,000,000 (or its equivalent
in other currencies).

 

Potential
Event of Default means an event or omission
which with either:

 

(a)                                 the giving of any notice;

 

(b)                                the lapse of time;

 

(c)                                 the determination of materiality; or

 

(d)                                the satisfaction of any other condition under Clause 10.1 (Events of Default),

 

would
be an Event of Default.

 

Quarter
means a period commencing the day after a
Quarter Date and ending on the next Quarter Date.

 

Quarter
Date means each of 31 March, 30 June, 30
September, and 31 December.

 

Rental Agreement  means any rental agreement
entered under the LoU (and a reference to a clause of a Rental Agreement is to
the clause of that number in the form of Rental Agreement attached to the LoU
(or the equivalent clause in the particular Rental Agreement)).

 

Residual Value means, in relation to each
Financed Vehicle, the value attributed to such vehicle at the end of the
minimum fixed period of hire of such Financed Vehicle in accordance with the
relevant Rental Agreement.

 

Sales Proceeds means any proceeds receivable by Hertz in respect of the sale of
Financed Vehicles.

 

Security
means any mortgage, charge, security, pledge, lien, right of set-off, right to
retention of title or other encumbrance, whether fixed or floating, over any
present or future property, assets or undertaking.

 

Security Period means the period starting on the date of this Agreement and ending
on the date on which Lombard is satisfied that all of the liabilities of Hertz
under each Lombard Finance Document are irrevocably discharged in full and
Lombard has no commitment or liability, whether present or future, actual or
contingent, in relation to the Facility.

 

Termination Date means 28 February 2013.

 

UK Fleet means vehicles
purchased or leased by Hertz for daily rental purposes within the UK.

 

UK GAAP means the accounting bases, policies, practices and procedures
generally accepted and adopted in the UK
including (where applicable) IFRS.

 

US GAAP means the accounting bases, policies, practices and procedures
generally accepted and adopted in the US.

 

Utilisation means a utilisation of the Facility (and the amount of a Utilisation
shall be as measured in accordance with Clause 4.3.2).

 

VAT means value added tax as provided for in the Value Added Tax Act
1994 and any other tax of a similar nature.

 

6

 

1.2                              Interpretation

 

Any reference in this Agreement to:

 

an affiliate shall
mean, in relation to any person, a subsidiary of that person or a holding
company of that person or any other subsidiary of that holding company;

 

a Clause or
a Schedule is to a clause of, or a
Schedule to, this Agreement;

 

a holding company
of a company or corporation shall be construed as a reference to any company or
corporation of which the first-mentioned company or corporation is a
subsidiary;

 

indebtedness shall be construed so as to include any obligation (whether
incurred as principal or as surety) for the payment or repayment of money,
whether present or future, actual or contingent;

 

a law
shall be construed as any law (including common or customary law), statute,
constitution, decree, judgment, treaty, regulation, directive, bye-law, order
or any other legislative measure of any government, supranational, local government,
statutory or regulatory body or court;

 

a month
is a reference to a period starting on one day in a calendar month and ending
on the numerically corresponding day in the next succeeding calendar month save
that:

 

(a)                                  if any such numerically corresponding day is not a Business Day,
such period shall end on the immediately succeeding Business Day to occur in
that next succeeding calendar month or, if none, it shall end on the
immediately preceding Business Day; and

 

(b)                                 if there is no numerically corresponding day in that next succeeding
calendar month, that period shall end on the last Business Day in that next
succeeding calendar month,

 

(and references to “months” shall be construed
accordingly);

 

a party means
any party to this Agreement;

 

a person
shall be construed as a reference to any person, firm, company, corporation,
government, state or agency of a state or any association or partnership
(whether or not having separate legal personality) of two or more of the
foregoing;

 

repay (or any derivative form thereof) shall, subject to any contrary
indication, be construed to include prepay
(or, as the case may be, the corresponding derivative form thereof);

 

a subsidiary means a subsidiary undertaking within the
meaning of section 258 of the Companies Act 1985;

 

a successor
shall be construed so as to include an assignee or successor in title of such
party and any person who under the laws of its jurisdiction of incorporation or
domicile has assumed the rights and obligations of such party under this Agreement
or to which, under such laws, such rights and obligations have been
transferred;

 

tax shall be construed so as to include any tax, levy, impost, duty or
other charge of a similar nature (including any penalty or interest payable in
connection with any failure to pay or any delay in paying any of the same);

 

a wholly-owned
subsidiary of a company or corporation shall be construed as a
reference to any company or corporation which has no other members except that
other company or corporation and that other company’s or corporation’s
wholly-owned subsidiaries or persons acting on behalf of that other company or
corporation or its wholly-owned subsidiaries;

 

7

 

£
and sterling denote lawful
currency of the United Kingdom; and

 

words importing the singular shall include the plural
and vice versa.

 

1.3                              Agreements and Statutes

 

Any reference in this Agreement to:

 

1.3.1                     this Agreement or any other agreement or document shall be construed
as a reference to this Agreement or, as the case may be, such other agreement
or document as the same may have been, or may from time to time be, amended,
varied, novated, supplemented or replaced. 
; and

 

1.3.2                     a statute or treaty shall be construed as a reference to such statute
or treaty as the same may have been, or may from time to time be, amended or,
in the case of a statute, re-enacted.

 

1.4                              Headings

 

Clause and Schedule headings are for ease of reference
only.

 

1.5                              Time

 

Any reference in this Agreement to a time of day shall,
unless a contrary indication appears, be a reference to London time.

 

1.6                              Third Party Rights

 

A person who is not a party to this Agreement has no
right under the Contracts (Rights of Third Parties) Act 1999 to enforce any
term of this Agreement.

 

2                                        Effective Date

 

Clauses 3 (The LoU)  to 5 (Changes
in Circumstances and Change of Control) (inclusive), 7 (Information undertakings) to 10 (Defaults) (inclusive) and 11.1 (Commitment Fee) of this Agreement shall
have no effect unless and until Lombard has confirmed in writing to Hertz that
it has received all of the items listed in Schedule 1 (Conditions
Precedent) and that each is, in form and substance, satisfactory to
it.

 

3                                        The LoU

 

The terms of this Agreement are supplemental to the LoU.  In particular, the terms of this Agreement
shall constitute a duly signed written variation of the terms of each Rental
Agreement for the purposes of  clause
14.08 thereof.  In the event of a conflict
between the provisions of the LoU and this Agreement, the terms of this
Agreement shall prevail.

 

4                                        Availability of the Facility

 

4.1                              The Facility

 

Subject to the other terms of this Agreement, Lombard
shall (upon request by Hertz in accordance with Lombard’s standard procedures)
enter into sale and lease-back arrangements with Hertz in respect of vehicles
for leasing to Hertz as part of the UK Fleet and/or purchase as principal
vehicles to be made available to Hertz as part of the UK Fleet by way of
leasing on the terms of this Agreement and the LoU.

 

8

 

4.2                              Commitment Period

 

Subject to the terms of the LoU and the other terms of
this Agreement, Lombard shall continue to make available the Facility until
(but excluding) the Termination Date.

 

4.3                              Available Facility

 

4.3.1                     Subject to the terms of the LoU and the other terms of this
Agreement, Lombard shall allow Hertz to make a Utilisation of the Facility in
accordance with such arrangements as it may agree from time to time with
Lombard provided that the proposed Utilisation would not exceed the Available
Facility on the proposed date of the Utilisation.

 

4.3.2                     The amount of each Utilisation shall be measured in accordance with
the systems and methods employed by Lombard from time to time.

 

4.3.3                     The Initial Sale and Leaseback shall be deemed to constitute a
Utilisation of the Facility and shall reduce the Available Facility
accordingly.

 

4.4                              LCV sub-limit

 

Without prejudice to Clause 4.3 (Available Facility),  a Utilisation of the Facility in respect
of LCVs may only be made if the resulting aggregate Utilisations in respect of
LCVs would not exceed £30,000,000.

 

4.5                              Commercial terms

 

4.5.1                     For the avoidance of doubt, except as expressly set out in this
Agreement, Lombard shall be free to determine the commercial terms offered in respect
of any proposed Utilisation.  Without limiting the foregoing, Lombard
intends to offer Hertz for the term of this Agreement pricing terms which are
consistent with the pricing terms set out in the Terms of Offer dated 21 December 2007
between Lombard and Hertz. Hertz acknowledges however that the specific pricing
which Lombard may offer to Hertz at any time shall be determined by Lombard by
reference to a number of factors, including in particular, but without
limitation, the cost of funds to Lombard, market conditions, internal credit
requirements and the tax or accounting treatment of the transactions between
Lombard and Hertz at the relevant time. Pricing terms may vary from indicative
pricing provided before or after the date of this Agreement.

 

4.5.2                     The maximum “Fixed Period” (as defined in the Rental Agreements) in
respect of LCVs shall be 18 months.  The
maximum Fixed Period in respect of vehicles other than LCVs shall be 8 months.

 

4.5.3                     Rent shall be payable monthly in advance (together with VAT charged
at the standard rate, where applicable). 
Rental profiles may, at Hertz’s option, include a final balloon rental
payment of up to 5% of the capital cost
to Lombard of the relevant Financed Vehicle.

 

4.5.4                     The maximum Residual Value (expressed as a percentage) which Lombard
might be willing to offer in respect of any vehicle the subject of a proposed
Utilisation will be 89% (in the case of vehicles other than LCVs) or 70% (in
the case of LCVs) of the original purchase price (net of VAT) of the relevant
vehicle.

 

4.5.5                     For the purposes of clause 4.01(e) of the LoU, the assumed rate
of corporation tax will be nil per cent. 
Accordingly, neither party will be required to pay any sum to the other
under clause 4.03 of the LoU.

 

4.6                              Potential Events of Default

 

Notwithstanding any other terms of the LoU, no
Utilisation may be made without Lombard’s prior written consent for so long as
there exists a Default.

 

9

 

5                                        Changes in Circumstances and
Adverse Tax Change

 

5.1                              Application of Clause

 

This Clause 5 shall apply if:

 

(a)                                 Lombard
serves a Change Notice; or

 

(b)                                an
Adverse Tax Change occurs and Hertz notifies Lombard of this.

 

5.2                              Negotiations

 

If Clause 5 applies, Lombard and Hertz
shall, if Hertz requests, promptly commence negotiations in good faith for the
purpose of amending (including, without limitation, by way of an increase, or
change in structure, of the pricing of the Facility) the terms of the LoU and
this Agreement to replace any sale and leaseback arrangements between Lombard
and Hertz with a vehicle-specific purchase agency or, as applicable, to
mitigate the effects of the Adverse Tax Change.

 

5.3                              Cancellation

 

If:

 

(i)                                  Hertz notifies Lombard that it does not want to commence or continue
negotiations; or

 

(ii)                               following the start of negotiations, Lombard and Hertz have not
reached a final and legally binding agreement reflecting agreed amendments
within 8 weeks (or such longer period as Lombard may at its sole discretion
agree)

 

then:

 

(a)                               the Facility shall
cease to be committed (without prejudice to any accrued rights and obligations
of the parties);

 

(b)                              (unless Lombard agrees otherwise) all Rental Agreements then
existing shall terminate and termination payments shall become due in
accordance with their terms;

 

(c)                               Hertz shall within 3 Business Days pay to Lombard an early
termination fee in an amount equal to 0.2% of the then Applicable facility
Amount plus any VAT payable thereon (being a payment of part of the revenue
under the Facility which Lombard will lose in consequence of the termination);
and

 

(d)                               if Lombard has served a Change Notice, Hertz shall, within three
Business Days of a written demand by Lombard (accompanied by a certificate
(which shall be conclusive in the absence of manifest error) confirming the
amount of Lombard’s Increased Costs then demanded), pay Lombard the amount of
any Increased Costs incurred by Lombard or any of its affiliates as a result of
the  change which has caused the service
of the Change Notice for the period of any negotiations under Clause 5.2.

 

6                                        Representations and Warranties

 

6.1                              Reliance

 

Lombard has entered into this Agreement in reliance on
the representations of Hertz set out in this Clause 6, and Hertz warrants
to Lombard on the date of this Agreement as set out below.

 

10

 

6.2                              Status

 

It is a corporation, duly incorporated and validly
existing under the law of its jurisdiction of incorporation.

 

6.3                              Binding obligations

 

The obligations expressed to be assumed by it in each
Lombard Finance Document to which it is a party are legal, valid, binding and
enforceable obligations;

 

6.4                              Non-conflict with other obligations

 

The entry into and performance by it of, and the
transactions contemplated by, the Lombard Finance Documents do not and will not
conflict with:

 

(a)                                 any
law or regulation applicable to it or binding on its assets;

 

(b)                                its
constitutional documents; or

 

(c)                                 any
agreement or instrument binding upon it or any of its assets where such
conflict would have a Material Adverse Effect.

 

6.5                              Power and authority

 

6.5.1                     It has the power to enter into, perform and deliver, and has taken
all necessary action to authorise its entry into, performance and delivery of,
the Lombard Finance Documents and the transactions contemplated by the Lombard
Finance Documents.

 

6.5.2                     No limit on its powers has been or will be exceeded as a result of
the borrowing, grant of security or giving of guarantees or indemnities
contemplated by the Lombard Finance Documents.

 

6.6                              Validity and admissibility in evidence

 

All authorisations, consents, permissions,
approvals, resolutions, licences, exemptions, filings, notarisations and
registrations required or desirable:

 

(a)                                 to
enable it lawfully to enter into, exercise its rights and comply with its
obligations in the Lombard Finance Documents;

 

(b)                                to
make the Lombard Finance Documents admissible in evidence in England; and

 

(c)                                 to
enable it and each of its subsidiaries to carry on its business, trade and
ordinary activities where the absence of such authorisation, consent,
permission, approval, resolution, licence, exemption, filing, notarisation or
registration would have a Material Adverse Effect,

 

have been obtained or effected and are in full force
and effect.

 

6.7                              Governing law and enforcement

 

6.7.1                     The choice of the laws of the State of New York as the governing law
of the Guarantee will be recognised and enforced in the jurisdiction of
incorporation of the Guarantor.

 

6.7.2                     Any judgment obtained in the
state of New York will be recognised and enforced in the jurisdiction of
incorporation of the Guarantor.

 

11

 

6.8                              No misleading information

 

The management statements and cashflow statement
provided by Hertz to Lombard on 26 October 2007
have been prepared by the management of Hertz after reasonable and
appropriate enquiries and, in light of such enquiries, are true, complete and
accurate in all material respects and the forecasts provided at that time were
fair and reasonable in all material respects.

 

6.9                              Financial statements

 

6.9.1                     Its Original Financial Statements were prepared in accordance with
UK GAAP consistently applied.

 

6.9.2                     Its Original Financial Statements fairly represent its financial
condition and operations as at the end of Hertz’s relevant financial year.

 

6.9.3                     Except for the sale of Hertz’s freehold premises at Feltham as
disclosed to Lombard before the date of this Agreement, there has been no
material adverse change in its business, financial condition, assets or
prospects since 31 December 2006.

 

6.9.4                      Its most recent
financial statements delivered pursuant to Clause 7 (Information undertakings):

 

(a)                                have
been prepared in accordance with UK GAAP as applied to the Original Financial
Statements; and

 

(b)                               give a
true and fair view of (if audited) or fairly present (if unaudited) its
financial condition as at the end of, and results of operations for, the period
to which they relate.

 

6.10                       Group Structure

 

The structure of the Group is as set out in the
structure chart most recently delivered to Lombard in accordance with
Schedule 1 (Conditions precedent)
or (as relevant) Clause 7.6 (Group structure) and that chart shows every
subsidiary of the Guarantor.

 

6.11                       Insolvency

 

No Obligor has (and none of Hertz’s subsidiaries has)
taken any action nor (to the best of its knowledge and belief) have any steps
been taken or legal proceedings been started or threatened against it for its
winding-up, dissolution or re-organisation, for the enforcement of any Security
over its assets or for the appointment of a liquidator, supervisor, receiver,
administrator, administrative receiver, compulsory manager, trustee or other
similar officer of it or in respect of any of its assets.

 

6.12                       No default

 

6.12.1               No
Event of Default is continuing or might reasonably be expected to result from
the making of any Utilisation.

 

6.12.2               No
other event or circumstance is outstanding which constitutes (or would do so
with the expiry of a grace period, the giving of notice, the making of any
determination, the satisfaction of any other condition or any combination of
any of the foregoing) a default or termination event (howsoever described)
under any other agreement or instrument which is binding on any Obligor or any
of Hertz’s subsidiaries or to which any Obligor’s (or any of Hertz’s
subsidiaries’) assets are subject in a manner or to an extent which might have
a Material Adverse Effect.

 

12

 

6.13                       No proceedings pending or threatened

 

No litigation, arbitration or administrative
proceedings of or before any court, arbitral body or agency which, if adversely
determined, might reasonably be expected to have a Material Adverse Effect,
have (to the best of its knowledge and belief) been started or threatened
against any Obligor or any of Hertz’s subsidiaries, nor is there subsisting any
unsatisfied judgment or award given against any of them by any court,
arbitrator or other body.

 

6.14                       Environmental Laws

 

6.14.1              Hertz
and each of its subsidiaries is in compliance with Clause 8.6 (Environmental compliance) and to the best of Hertz’s
knowledge and belief (having made due and careful enquiry) no circumstances
have occurred which would prevent such compliance in a manner or to an extent
which has or is reasonably likely to have a Material Adverse Effect.

 

6.14.2              No
Environmental Claim has been commenced or (to the best of its knowledge and belief
(having made due and careful enquiry)) is threatened against it or any of its
subsidiaries  where that claim has or is
reasonably likely, if unfavourably determined, to have a Material Adverse
Effect.

 

6.14.3              No
circumstances have arisen which (i) would entitle any regulatory body to
revoke, suspend, amend, vary, withdraw, transfer or refuse to amend any
Environmental Permit (where such action by a regulatory body might reasonably
be expected to have a Material Adverse Effect) or (ii) which might give
rise to a claim against Hertz or any subsidiary which might reasonably be
expected to have a Material Adverse Effect.

 

6.15                       Repetition

 

The representations set out in this Clause
6 (Representations and warranties)
shall survive the execution of this Agreement. 
The representations set out in Clauses 6.2 (Status) to 6.6 (Validity
and admissibility in evidence), 6.9 (Financial statements), 6.10 (Group structure), 6.12 (No
default) and 6.13 (No proceedings
threatened or pending) are deemed to be repeated by Hertz  by reference to the facts and circumstances
then existing on the date of each request for a Utilisation and each Quarter
Date, except that those contained in Clauses 6.9.1 to 6.9.3 (Financial statements) will cease to be so
made once subsequent financial statements have been delivered under this
Agreement.

 

7                                        Information Undertakings

 

7.1                              Annual Statements

 

7.1.1                     Hertz shall, as soon as the same become available, but in any event
no later than the latest date for filing permitted under applicable law,
deliver to Lombard the audited financial statements and a cashflow statement of
Hertz) in the form prescribed by the Companies Act 1985 (or the Companies Act
2006 (as applicable)) for such financial year. 
The profit and loss account shall show separately the depreciation and
interest cost elements of vehicle financing costs.

 

7.1.2                     Hertz shall, as soon as the same become available, but in any event
no later than the latest date for filing permitted under applicable law,
deliver to Lombard the audited consolidated financial statements of the
Guarantor.

 

7.2                              Monthly Management Statements

 

Hertz  shall as
soon as the same become available but in any event within 30 days after the end
of each month deliver to Lombard the management statements and a cashflow statements
of Hertz for such period.  The management
accounts shall be in a form approved by Lombard from time to time and shall
include a commentary on and reconciliations of significant differences between
the reported figures and the budget applicable to that period, 

 

13

 

and shall contain a prior-year comparison.  The income statement shall show separately
the depreciation and interest cost elements of vehicle financing costs.  Hertz shall procure that all management
statements provided under this Agreement have been prepared in accordance with
US GAAP.

 

7.3                              Compliance Certificates

 

7.3.1                     Hertz shall supply to Lombard:

 

(a)                                 with
each set of financial statements delivered pursuant to Clause 7.1 (Annual Statements); and

 

(b)                                with
each set of monthly management statements delivered pursuant to Clause 7.2 (Monthly Management Statements) in respect
of the months of March, June, September and December in any year,

 

a
Compliance Certificate signed by two authorised signatories of Hertz setting
out (in reasonable detail) computations as to compliance with the financial
covenants set forth in Schedule 2 (Financial Covenants)
as at the date as at which those financial statements were drawn up.

 

7.4                              Operating Plan

 

7.4.1                     Hertz shall provide
to Lombard an Operating Plan in
respect of Hertz, not less than 30 days prior to the start of each of its
financial years, in a form approved by Lombard and which shall include at least
the following:

 

(a)                                 a
projected profit and loss statement;

 

(b)                                a
projected balance sheet;

 

(c)                                 a
projected cash flow statement; and

 

(d)                                projected
covenant calculations relating to each financial undertaking contained in
Schedule 2 (Financial Covenants),

 

relative to the financial year next starting and set
out on a month-by-month basis together with management’s commentary drawing on
the previous period’s performance and forecast market conditions.

 

7.4.2                     Hertz shall, as soon as the same become available and in any event
within 30 days of the end of the relevant Quarter, provide to Lombard (in a
format approved by it) revised estimates, forecasts and projections in respect
of the remainder of the then current financial year.

 

7.5                              Information to Shareholders

 

Hertz shall supply to Lombard all documents dispatched
by the Company to its shareholders (or any class of them) or its creditors
generally at the same time as they are dispatched.

 

7.6                              Group structure

 

Hertz shall supply to Lombard a revised group
structure chart promptly upon any change occurring in the group structure
between Hertz Global Holdings, Inc. and Hertz, together with a note
identifying the relevant change.

 

7.7                              Notification of default

 

Hertz shall notify Lombard of any Default (and the
steps, if any, being taken to remedy it) promptly upon becoming aware of its
occurrence.

 

14

 

7.8                              Information on request

 

Promptly
following Lombard’s written request from time to time, Hertz shall provide to
Lombard such other information, estimates, forecasts or projections in relation
to it and its financial condition, business and operations as Lombard may
reasonably require.

 

8                                        General Undertakings

 

8.1                              Negative Pledge

 

Hertz shall not create nor permit to subsist any
Security (other than Permitted Security) over any of its assets or undertaking,
other than with the prior written consent of the Lombard.

 

8.2                              Licensing

 

Hertz, if a party to a written licensing agreement for
the use of the trademark “Hertz” (or any trademark deriving from it),
undertakes that it will not without the prior written consent of Lombard (such
consent not to be unreasonably withheld):

 

(a)                                 consent
to any change to the terms of such agreement that may have a significant
adverse effect upon the ability of Hertz to use such trademarks;

 

(b)                                terminate
that agreement; and

 

Hertz undertakes that in the event of any circumstance
giving rise to the termination of such licensing agreement it will use its
reasonable endeavours to acquire equivalent rights to continue to use such
trademarks.

 

8.3                              Systems and records

 

8.3.1                     Hertz shall at all times maintain systems and records satisfactory
to Lombard for tracking the Financed Vehicles.

 

8.3.2                     Hertz shall give Lombard access to its books and records and shall
give Lombard such assistance as it may require:

 

(a)                                every
6 months (commencing in April 2008) for the purposes of Lombard conducting
an audit of Hertz’s systems and records;

 

(b)                               every 6
months (commencing in April 2008) for the purposes of Lombard conducting
an audit of Hertz’s sub-hire arrangements; and

 

(c)                                on
demand at any time following the occurrence of a Default which is continuing.

 

8.4                              Change of business

 

Hertz shall procure that no substantial change is made to the general
nature of the business of Hertz or any of its subsidiaries from that carried on
at the date of this Agreement.

 

8.5                              Insolvency Regulation

 

Hertz shall:

 

(a)                                maintain
its centre of main interests in England and Wales for the purposes of the
Insolvency Regulation; and

 

(b)                               not
open or maintain any establishment (as defined in Article 2(h) of the
Insolvency Regulation) in any Member State (within the meaning of the
Insolvency Regulation) 

 

15

 

other
than the United Kingdom or take any action or permit any action to be taken
which may result in a court of any other Member State finding that Hertz has an
establishment in that other Member State,

 

where Insolvency
Regulation means the Council Regulation (EC) No.1346/2000 of 29 May 2000
on Insolvency Proceedings.

 

8.6                              Environmental compliance

 

Hertz shall (and shall ensure that each of
its subsidiaries will):

 

(a)                                comply
with all Environmental Law;

 

(b)                               obtain,
maintain and ensure compliance with all requisite Environmental Permits; and

 

(c)                                implement
procedures to monitor compliance with and to prevent liability under any
Environmental Law,

 

where, in each case, failure to do so has or is
reasonably likely to have a Material Adverse Effect.

 

8.7                              Data protection, etc.

 

8.7.1                     The terms detailed in Schedule 3 (Data Protection, etc.) are incorporated into the LoU and all
Rental Agreements.

 

8.7.2                     Hertz agrees that Lombard may use Hertz’s information in the way
described in Schedule 3 and in the associated Terms and Conditions of the
Rental Agreements.  Hertz confirms that
its signatory to this Agreement is duly authorised by its other officers and
beneficial owners to consent to the searches and use of information referred to
in Schedule 3 in the same way.

 

8.7.3                     Hertz shall, on the Effective Date, notify Lombard of its elections
under the “Keeping You Informed” section of Schedule 3.

 

9                                        Financial Covenants

 

9.1                              Covenants

 

Hertz undertakes to ensure that the financial
covenants set out in Part A of Schedule 2 (Financial Covenants) are complied with.

 

9.2                              Change in accounting reference date, policies, etc.

 

9.2.1                     If:

 

(a)                                the directors of Hertz determine at any time that the accounting
reference date of Hertz has or should be changed or any of the accounting
principles applied in the preparation of any of the accounts shall be different
from those under UK GAAP (in relation to annual accounts) or US GAAP (in
relation to monthly management accounts) as at the date of this Agreement, or
if as a result of the introduction or implementation of any Statement of
Standard Accounting Practice issued by the Institute of Chartered Accountants
in England and Wales, Financial Reporting Standard issued by the Accounting
Standards Board, International Accounting Standard or International Financial
Reporting Standard or any change in any of them or in any applicable law such
accounting principles are required to be changed, Hertz shall promptly give
notice to Lombard of that change, determination or requirement;

 

(b)                                Lombard
believes in its reasonable judgment that the financial undertakings set out in
Clause 9.1 (Covenants) and Part A
of Schedule 2 (Financial Covenants)
need to be 

 

16

 

amended
as a result of any such change, determination or requirement, Hertz and Lombard
shall negotiate in good faith to amend the existing financial undertakings so
as to provide Lombard with substantially the same protections as the financial
undertakings set out in Part A of Schedule 2 (Financial Covenants);

 

(c)                                 Hertz
and Lombard cannot agree such amended financial undertakings within
30 days of that notice, Hertz and Lombard shall jointly nominate a firm of
chartered accountants to settle the amended financial undertakings, or in
default of such nomination Lombard shall request the President for the time
being of the Institute of Chartered Accountants in England and Wales to
nominate a firm of chartered accountants for that purpose.  Such accountants shall act as experts and not
arbitrators and their decision shall be final and binding on the Parties.  The costs of such accountants shall be borne
by the parties equally unless the nominated accountants determine that a party
has failed to meet its obligations under Clause (b) (in which case, that
party shall bear all of the nominated accountants’ costs).

 

10                                 Default

 

10.1                      Events of Default

 

10.1.1              Each
of the following events or circumstances is an Event of Default:

 

(a)                                 breach of Rental Agreement: Hertz:

 

(i)                                    fails to pay within 5 Business Days of the due date any amount
payable by it under a Rental Agreement; or

 

(ii)                                 can be treated as having repudiated any Rental Agreement in
accordance with clause 7.01(b) or (d) thereof;

 

(b)                                financial covenants: any requirement of
Clause 9.1 (Covenants) is
not satisfied on any date it is tested in accordance with Part A of
Schedule 2 (Financial covenants);

 

(c)                                any other breach: any Obligor  does not comply with any provision of the
Lombard Finance Documents (other than those referred to in Clauses (a) and
(b)) unless the failure to comply is capable of remedy and is remedied within
fifteen days of Lombard giving notice to Hertz;

 

(d)                                misrepresentation, etc.: any
representation, warranty or statement made or given or deemed to be made or
given by any Obligor in or under the Lombard Finance Documents or any other
document delivered by or on behalf of an Obligor under or in connection with
any Lombard Finance Document is or proves to have been incorrect or misleading
in any material respect when made or deemed to be made unless such default is
capable of remedy and is remedied within 15 Business Days of Lombard giving
notice to Hertz;

 

(e)                                insolvency:

 

(i)                                   an Obligor is unable or admits inability to pay its debts as they
fall due, suspends making payments on any of its debts or, by reason of actual
or anticipated financial difficulties, commences negotiations with one or more
of its creditors with a view to rescheduling any of its indebtedness;

 

(ii)                                the value of the assets of an Obligor is less than its liabilities
(taking into account contingent and prospective liabilities);

 

(iii)                             a moratorium or other protection from its creditors is declared or
imposed in respect of any indebtedness of an Obligor;

 

17

 

(iv)                            any corporate action, legal proceedings or other procedure or step
is taken (including the making of an application, the presentation of a
petition, the filing or service of a notice or the passing of a resolution) in
relation to:

 

(aa)                          the suspension of payments, a moratorium of any indebtedness,
winding-up, dissolution, administration or reorganisation (by way of voluntary
arrangement, scheme of arrangement or otherwise) of an Obligor;

 

(bb)                        a composition, compromise, assignment or arrangement with any
creditor of an Obligor;

 

(cc)                          the appointment of a liquidator, supervisor, receiver, administrative
receiver, administrator, compulsory manager, trustee or other similar officer
in respect of an Obligor or any of its assets; or

 

(dd)                        enforcement of any Security over any assets of an Obligor for an
amount exceeding £50,000,

 

or any analogous procedure or step is taken in any jurisdiction, except
in the case of a winding-up petition which is (i) in Lombard’s opinion an
abuse of process or has no real prospect of success and (ii) in any event
discharged within 7 days of its presentation and before it is advertised;

 

(f)                                   cross default: any Financial
Indebtedness of Hertz in excess of, in aggregate, £1,000,000 :

 

(i)                                    is not paid when due;

 

(ii)                                 is declared to be or otherwise becomes due and payable prior to its
specified maturity; or

 

(iii)                              any creditor of Hertz becomes entitled to declare any such Financial
Indebtedness due and payable prior to its specified maturity;

 

(g)                                unlawfulness, etc.: it becomes unlawful
for an Obligor to perform or comply with, or an Obligor repudiates, any of its
obligations under any Lombard Finance Document;

 

(h)                                invalidity: any of the Lombard Finance
Documents is, or is claimed by an Obligor to be, not in full force and effect;
and

 

(i)                                   change of control: there occurs a Change
of Control.

 

10.2                       Separate nature

 

Each Event of Default set out in Clause 10.1 (Events of Default) constitutes a separate
and independent Event of Default which shall not be qualified by reference to
any other Event of Default.  The
occurrence or otherwise of an Event of Default shall be without prejudice to
any other rights or remedies which Lombard might have under the LoU or any of
the other Lombard Finance Documents.

 

10.3                       Cancellation, etc.

 

On and at any time after the occurrence of an Event of
Default which is continuing (and which, for the avoidance of doubt, remains
unremedied and unwaived), Lombard may by notice to Hertz:

 

(a)                                 cancel
the committed nature of the Facility (whereupon Lombard shall be entitled to
refuse further Utilisations of the Facility in its absolute discretion); and/or

 

18

 

(b)                                terminate
any of the Rental Agreements (and under the terms of each terminated Rental
Agreement (x) the relevant Event of Default will be deemed to be a breach
thereof and (y) the termination of that Rental Agreement will be deemed to
have been for a breach thereof) and, for the avoidance of doubt, any Sales
Proceeds in respect of a terminated Rental Agreement shall then be immediately
due and payable; and/or

 

(c)                                 require
payment in full of any outstanding instalments of the arrangement fee referred
to in clause 11.2 (Arrangement Fee).

 

11                                 Fees and Costs

 

11.1                       Commitment Fee

 

11.1.1              Hertz
shall pay a commitment fee to Lombard calculated at the rate of 0. 75% per
annum of the Headroom (determined as set out below), together with VAT payable
thereon (if any). The commitment fee shall be payable in arrear:

 

(a)                                 on the Business Day
immediately following each anniversary of this Agreement; and

 

(b)                                on the last Business Day on which the Facility
is available on a committed basis.

 

Each period at the end of
which the Commitment Fee is payable is a Fee
Period.

 

11.1.2              Headroom
shall be determined by reference to the Utilisation for each calendar month in
the relevant Fee Period on the last day of that calendar month. If that
Utilisation is more than 80% of the Facility Amount for that month, the excess
amount shall be recorded as a positive figure. If that Utilisation is less than
80% of the Facility Amount for that month, the difference shall be recorded as
a negative figure.

 

11.1.3              At
end of each Fee Period, each monthly figure shall be added together. If the
resulting total amount is positive, no commitment fee shall be payable by Hertz
for that Fee Period but for the avoidance of doubt, no amount shall be payable,
nor credit given, by Lombard to Hertz and Hertz shall not be entitled to carry
forward any positive amount to any subsequent Fee Period.   If the resulting total amount is negative,
that amount shall be divided by the number of months in the relevant Fee Period
and the resulting figure shall be the Headroom.

 

11.2                       Arrangement Fee

 

11.2.1              Hertz
shall pay Lombard an aggregate, non-refundable arrangement fee of £537,500
which (together with VAT payable thereon (if any)) as follows:

 

(i)                                    as to £337,500, prior to the Effective Date (and the receipt of
which Lombard acknowledges);

 

(ii)                                 as to £100,000 on the first Increase Date; and

 

(iii)                              as to the balance, by payment of £25,000 on each subsequent Increase
Date.

 

11.3                       Costs

 

Hertz shall forthwith on demand pay or reimburse to
Lombard the amount of all costs and expenses (including legal fees and VAT)
incurred by Lombard in connection with the enforcement of, or the preservation
of any rights under, the Lombard Finance Documents.

 

11.4                       Default interest

 

Clause 14.02 of the form of Rental Agreement shall
apply mutatis mutandis to any
amount due to Lombard under a Lombard Finance Document which is not paid on the
due date for payment.

 

19

 

12                                 Notices

 

12.1                       Communications in Writing

 

Each communication to be made hereunder shall be made
in writing and, unless otherwise stated, shall be made by fax or letter.

 

12.2                       Delivery

 

Any communication or document to be made or delivered
by one person to another pursuant to this Agreement shall:

 

12.2.1               if
by way of fax (unless that other person has by fifteen days’ notice specified
in writing another number) be made to such other person to the fax number
identified with its signature below and shall be deemed to have been received
when transmission has been completed; and

 

12.2.2               if
by way of letter (unless that other person has by fifteen days’ notice
specified in writing another address) be delivered to that other person at the
address identified with its signature below and shall be deemed to have been
delivered when left at that address or, as the case may be, ten days after
being deposited in the post postage prepaid in an envelope addressed to it at
that address,

 

provided that any communication or document to be made
or delivered to Lombard shall be effective only when received at the address
indicated below and then only if the same is expressly marked for the attention
of the department or officer (if any) identified with its signature below (or
such other department or officer as Lombard shall from time to time specify for
this purpose).

 

13                                 Set off and counterclaim

 

13.1                       By Hertz

 

All payments by Hertz under the Lombard Finance Documents shall be made
without set-off or counterclaim.

 

13.2                       By Lombard

 

At any time whilst an Event of Default is continuing, or at any time on
or after the Facility is cancelled or terminates, Lombard may set off any
matured obligation owed by Hertz under any Lombard Finance Document against any
obligation (whether or not matured) owed by Lombard to Hertz.  If the obligations are in different
currencies, Lombard may for the purpose of the set-off convert either
obligation at the relevant spot rate of exchange quoted by The Royal Bank of
Scotland plc.

 

14                                 Waivers; remedies cumulative

 

The rights of Lombard under the Lombard Finance
Documents:

 

(a)                                 may
be exercised as often as necessary;

 

(b)                                are
cumulative and not exclusive of its rights under the general law; and

 

(c)                                 may
be waived only in writing and specifically.

 

Delay in exercising or non-exercise of any such right
is not a waiver of that right.

 

20

 

15                                 Severance

 

If any provision of this Agreement is or becomes
illegal, invalid or unenforceable in any jurisdiction, that shall not affect:

 

(a)                                 the
legality, validity or enforceability in that jurisdiction of any other
provision of this Agreement; or

 

(b)                                the
legality, validity or enforceability in any other jurisdiction of that or any
other provision of this Agreement.

 

16                                 Assignment

 

16.1                       No Assignment

 

None of the Lombard Finance Documents nor any rights
or obligations thereunder shall be assignable or transferable by Hertz except
with the prior written consent of Lombard. 
Lombard may freely assign or transfer any of the Lombard Finance
Documents or any of its rights or obligations thereunder.  Lombard agrees that it will (unless it
determines in its absolute discretion that it is not practicable or desirable
to do so) consult with Hertz as to the identity of any proposed assignee or
transferee.

 

16.2                       Benefit

 

This Agreement shall enure for the benefit of the
successors to or permitted transferees or assignees of any of the parties.

 

17                                 Counterparts

 

This Agreement may be executed in any number of
counterparts, and this has the same effect as if the signatures on the
counterparts were on a single copy of this Agreement.

 

18                                 Law

 

This Agreement will be governed by and construed
according to English law and Hertz 
submits to the jurisdiction of the English Courts.

 

Signed by the parties or their duly authorised representatives

 

21

 

Schedule 1 — Conditions Precedent

 

In this Schedule, Certified Copy
means, in relation to a document, a copy of that document bearing the
endorsement “Certified a true, complete and accurate copy of the original,
which has not been amended otherwise than by a document and which is in full
force and effect as at [date of this
Agreement], a Certified Copy of which is attached hereto”, which has
been signed and dated by a duly authorised officer of the relevant company and
which complies with that endorsement.

 

The conditions referred to in Clause 2 (Conditions Precedent) are that Lombard shall have received
each of the following in form and substance satisfactory to it:

 

1.               this Agreement executed
by each party to it;

 

2.               the fees and costs
payable in accordance with this Agreement on or before the date hereof;

 

3.               a Certified Copy of
Hertz’s constitutional documents, certificate of incorporation and any
certificates of incorporation on change of name;

 

4.               a Certified Copy of a
resolution of Hertz’s board of directors:

 

a)              approving the terms of,
and the transactions contemplated by, the Lombard Finance Documents to which it
is a party and which have not been executed before the date of this Agreement,
and resolving that it execute such Lombard Finance Documents;

 

b)             authorising a specified
person or persons to execute on its behalf the Lombard Finance Documents which
have not been executed before the date of this Agreement and to which it is a
party; and

 

c)              authorising a specified
person or persons, on its behalf, to sign and/or despatch all documents and
notices (for example, Compliance Certificates) to be signed and/or despatched
by it under or in connection with the Lombard Finance Documents to which it is
a party; and

 

d)             a specimen of the
signature of each person authorised by the resolution referred to in paragraph (b) above
in relation to the Lombard Finance Documents which have not been executed
before the date of this Agreement;

 

5.               the
Guarantee Confirmation duly executed by the Guarantor; and

 

6.               a
group structure chart.

 

22

 

Schedule 2- Financial Covenants

 

Part A – Covenants

 

1.               In
this Schedule, the following words have the following meaning:

 

EBIT means, in relation to any period, the unconsolidated operating
profit (before extraordinary and exceptional items) of Hertz  for that period (which, for the avoidance of
doubt is calculated before taxation and Interest Expense).

 

EBITDA means, in relation
to any period, EBIT for that period but adding back amounts charged in the
period in respect of the depreciation or amortisation of non-fleet tangible and
intangible fixed assets.

 

Fleet
Capital Employed means the aggregate of Hertz’s net book value of revenue-earning
vehicles, plus net manufacturer receivables, less
vehicle payables (as such items are set out in the format for monthly
management accounts approved by Lombard).

 

Fleet Utilisation means,
at a given time, the total number of days during which vehicles have been on
rent (each vehicle contributing separately to this total) as a percentage of
the total number of days during which such vehicles were available for rental
(excluding, for the avoidance of doubt, days when vehicles were not available
for rental because of mechanical problems, maintenance or repairs) in the
preceding 12 month period (each vehicle contributing separately to this total).

 

Interest
Expense means, in relation to any period,
all interest (including the interest cost element of vehicle financing costs),
commissions, periodic fees and other financing charges (excluding the
Arrangement Fee) accrued by Hertz during that period.

 

Tangible Net Worth means,
at a given time, the total capital employed by Hertz as disclosed in the
Original Financial Statements, plus:

 

(a)          cumulative
retained profit earned after that date; and

 

(b)         translation, dividend and all other financial adjustments not
included in cumulative retained profit.

 

Total Fleet Debt means the
aggregate of Utilisations as at the relevant date.

 

2.               Hertz
undertakes to ensure that during the period referred to in Clause 4.1 (Commitment Period), unless Lombard
otherwise agrees:

 

(a)                                Tangible Net Worth

 

(i)                                  Tangible
Net Worth, excluding the effect of any change in the actuarial loss in respect
of pension schemes compared to that actuarial loss disclosed in the Original
Financial Statements, shall not at any time on or before 30 June 2008 be
less than £14,000,000 and (thereafter) £15,000,000; and

 

(ii)                               Tangible
Net Worth shall not at any time be less than £5,000,000;

 

(b)                               Interest Cover

 

the ratio of EBITDA to Interest Expense in
respect of the 12 month period ending on each Quarter Date shall not be less
than 1.50:1;

 

23

 

(c)                                 Total Fleet Debt to Fleet Capital Employed

 

the ratio of
Total Fleet Debt to Fleet Capital Employed on each Quarter Date shall not be more than 1:1; and

 

(d)                                Fleet Utilisation

 

                                               the Fleet Utilisation of the UK Fleet on each Quarter Date shall not
be less than 65%.

 

3.               The
calculation of ratios and other amounts under this Schedule shall be made by
reference to the latest financial statements provided to Lombard under Clauses
7.1 (Annual Statements) and 7.2 (Monthly Management Statements) for the
period in relation to which the calculation falls to be made.

 

4.               The
first covenant test date shall be 30 June 2008.

 

24

 

Part B – Form of Compliance Certificate

 

To:                               Lombard
North Central Plc

 

From:                Hertz UK Limited

 

Dated: **

 

Dear Sirs

 

Hertz UK Limited – Override Agreement dated
**                   (the
Agreement)

 

1                                         We refer to the Agreement. 
This is a Compliance Certificate. 
Terms defined in the Agreement have the same meaning in this Compliance
Certificate unless given a different meaning in this Compliance Certificate.

 

2                                         We confirm that:  [Insert
details of covenants to be certified]

 

3                                         [We confirm that no
Default is continuing.]

 

With
regard to paragraph 3, if this statement cannot be made, the certificate should
identify any Event of Default that is continuing and the steps, if any, being
taken to remedy it.

 

 

	
  Signed:

  	
   

  	
   

  
	
   

  	
  Authorised
  signatory

  	
  Authorised
  signatory

  
	
   

  	
  Of

  	
  of

  
	
   

  	
  Hertz UK
  Limited

  	
  Hertz UK
  Limited

  

 

25

 

Schedule 3– Data Protection, etc.

 

 KEEPING YOU INFORMED

 

We would like to keep you informed by letter, phone and electronic means
(including e-mail and fax) about products, services and additional benefits
that we believe may be of interest to you. 
If you don’t want us to keep you informed by any of these methods,
please place a cross in the appropriate box below.

 

Letter  o   Phone  o    E-mail  o     Fax  o

 

 GIVING YOUR CONSENT

 

By signing
this agreement you are agreeing that we may use your information in the way
described in this form (including the ‘Keeping you informed’ section) and in
the associated Terms and Conditions.  You
are also confirming that you are duly authorised by other officers and
beneficial owners to consent to the searches and use of information in the same
way.

 

1                              Your information

 

1.1                Who we are

 

We are
a member of The Royal Bank of Scotland Group (the Group).  For information about our Group of companies,
please visit www.rbs.com and click on ‘About
us’, or for similar enquiries telephone 0131 556 8555 or Textphone 0845 900 5960.

 

How
we use your information and who we share it with

 

Your
information comprises all the details we hold about you and your transactions,
and includes information obtained from third parties.

 

We may
use and share your information with other members of the Group to help us and
them assess financial and insurance risks; recover debt; prevent and detect
crime; understand our customers’ requirements; develop and test products and
services.

 

We do
not disclose your information to anyone outside the Group except: where we have
your permission; or where we are required or permitted to do so by law; or to
credit reference and fraud prevention agencies and other companies that provide
a service to us or you; or where we may transfer rights and obligations under
this agreement.

 

We may
transfer your information to other countries on the basis that anyone to whom
we pass it provides an adequate level of protection.  However, such information may be accessed by
law enforcement agencies and other authorities to prevent and detect crime and
comply with legal obligations.

 

From
time to time we may change the way we use your information.  Where we believe you may not  reasonably expect such a change we shall
write to you.  If you do not object to
the change within 60 days, you consent to that change.

 

If you
would like a copy of the information we hold about you, please write to: The
Data Protection Manager, Lombard Operations, 3 Princess Way, Redhill RH1
1NP.  A fee may be payable.

 

2                              Credit reference agencies

 

2.1                   We may make periodic searches at credit
reference agencies and will provide information to the Group to manage and take
decisions about your accounts. This may include information about how you
manage your account including your account balance, credit limit and any
arrears.  We will also provide this
information to credit reference agencies who may make this information
available to other organisations so that they can take decisions about you,
your associates and members of your household. 
The information may also be used for tracing purposes.

 

26

 

3                     
 Fraud prevention agencies

 

3.1             If false or inaccurate
information is provided and fraud is identified or suspected, details may be
passed to fraud prevention agencies.  Law
enforcement agencies may access and use this information.

 

                            We and
other organisations may also access and use this information to prevent fraud
and money laundering, for example when checking applications for, and managing
credit or other facilities and recovering debt; checking insurance proposals
and claims; checking details of job applicants and employees.

 

                            We, and
other organisations that may access and use information recorded by fraud
prevention agencies, may do so from other countries.

 

                            We can
provide the names and addresses of credit reference and fraud prevention
agencies we use.  If you would like a
copy of your information held by them, please telephone 0870 544 8888.  The agencies may charge a fee.

 

27

 

Schedule 4 – Guarantee Confirmation

 

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 [**]
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
                ,
2008.

 

 

	
   

  	
   

  	
  HERTZ INTERNATIONAL, LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  And By

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its

  	
   

  
						

 

28

 

EXECUTION PAGES

 

 

	
  Signed by Jim McGill and Christopher Shooter

  	
  )

  	
   

  
	
  duly
  authorised for and on behalf of

  	
  )

  	
  /s/ JIM
  MCGILL

  
	
  HERTZ
  UK LIMITED

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
   

  	
  )

  	
  /s/ CHRISTOPHER SHOOTER

  
	
  Address:

  	
  11 Vine Street

  	
   

  	
   

  
	
   

  	
  Uxbridge

  	
   

  	
   

  
	
   

  	
  Middlesex

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fax:

  	
  +44 (0) 1895
  553939

  	
   

  	
   

  
	
  Attention:

  	
  Jim McGill

  	
   

  	
   

  

 

29

 

	
  Signed by Gary Leitch

  	
  )

  	
   

  
	
  duly
  authorised for and on behalf of

  	
  )

  	
  /s/   GARY
  LEITCH

  
	
  LOMBARD NORTH CENTRAL PLC

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  Lombard
  Corporate Finance

  	
   

  	
   

  
	
   

  	
  Lombard
  North Central plc

  	
   

  	
   

  
	
   

  	
  280
  Bishopsgate

  	
   

  	
   

  
	
   

  	
  London EC2M
  4RB

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fax:

  	
  + 44(0) 20
  7672 4006

  	
   

  	
   

  
	
  Attention:

  	
  Richard
  Perry

  	
   

  	
   

  

 

30

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