Asset Purchase Agreement by AVIS BUDGET GROUP, INC.
Company: AVIS BUDGET GROUP, INC.
SEC CIK: 723612
SEC Type: EX-10.41(A)
SIC Code: 7510
SIC Industry: SERVICES-AUTO RENTAL & LEASING (NO DRIVERS)
Exhibit 10.41(a)
EXECUTION COPY
AVIS BUDGET RENTAL CAR FUNDING (AESOP) LLC,
as Issuer
AVIS BUDGET CAR RENTAL, LLC,
as Administrator
DEUTSCHE BANK AG, NEW YORK BRANCH,
as Administrative Agent
CERTAIN CP CONDUIT PURCHASERS,
CERTAIN FUNDING AGENTS,
CERTAIN APA BANKS
and
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
as Trustee and Series 2009-3 Agent
SERIES 2009-3 SUPPLEMENT
dated as of November 5, 2009
to
SECOND AMENDED AND RESTATED BASE INDENTURE
dated as of June 3, 2004
SERIES 2009-3 SUPPLEMENT, dated as of November 5, 2009 (this Supplement), among AVIS BUDGET RENTAL CAR FUNDING (AESOP) LLC, a special purpose limited liability company established under the laws of Delaware (ABRCF), AVIS BUDGET CAR RENTAL, LLC, a limited liability company established under the laws of Delaware (ABCR), as administrator (the Administrator), DEUTSCHE BANK AG, NEW YORK BRANCH (DBNY), in its capacity as administrative agent for the CP Conduit Purchasers, the APA Banks and the Funding Agents (the Administrative Agent), the several commercial paper conduits listed on Schedule I and their respective permitted successors and assigns (the CP Conduit Purchasers; each, individually, a CP Conduit Purchaser), the several banks set forth opposite the name of each CP Conduit Purchaser on Schedule I and the other banks parties hereto pursuant to Section 11.1 (each an APA Bank with respect to such CP Conduit Purchaser), the agent bank set forth opposite the name of each CP Conduit Purchaser on Schedule I and its permitted successors and assigns (the Funding Agent with respect to such CP Conduit Purchaser) and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. (as successor in interest to The Bank of New York), a national banking association, as trustee (in such capacity, the Trustee) and as agent for the benefit of the Series 2009-3 Noteholders (in such capacity, the Series 2009-3 Agent), to the Second Amended and Restated Base Indenture, dated as of June 3, 2004, between ABRCF and the Trustee (as amended, modified or supplemented from time to time, exclusive of Supplements creating a new Series of Notes, the Base Indenture).
PRELIMINARY STATEMENT
WHEREAS, Sections 2.2 and 12.1 of the Base Indenture provide, among other things, that ABRCF and the Trustee may at any time and from time to time enter into a supplement to the Base Indenture for the purpose of authorizing the issuance of one or more Series of Notes;
NOW, THEREFORE, the parties hereto agree as follows:
DESIGNATION
There is hereby created a Series of Notes to be issued pursuant to the Base Indenture and this Supplement and such Series of Notes shall be designated generally as Variable Funding Rental Car Asset Backed Notes, Series 2009-3.
The proceeds from the sale of the Series 2009-3 Notes shall be deposited in the Collection Account and shall be paid to ABRCF and used to make Loans under the Loan Agreements to the extent that the Borrowers have requested Loans thereunder and Eligible Vehicles are available for acquisition or refinancing thereunder on the date hereof. Any such portion of proceeds not so used to make Loans shall be deemed to be Principal Collections.
The Series 2009-3 Notes are a non-Segregated Series of Notes (as more fully described in the Base Indenture). Accordingly, all references in this Supplement to all Series of Notes (and all references in this Supplement to terms defined in the Base Indenture that contain references to all Series of Notes) shall refer to all Series of Notes other than Segregated Series of Notes.
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ARTICLE I
DEFINITIONS
(a) All capitalized terms not otherwise defined herein are defined in the Definitions List attached to the Base Indenture as Schedule I thereto. All Article, Section, Subsection, Exhibit or Schedule references herein shall refer to Articles, Sections, Subsections, Exhibits or Schedules of this Supplement, except as otherwise provided herein. Unless otherwise stated herein, as the context otherwise requires or if such term is otherwise defined in the Base Indenture, each capitalized term used or defined herein shall relate only to the Series 2009-3 Notes and not to any other Series of Notes issued by ABRCF. In the event that a term used herein shall be defined both herein and in the Base Indenture, the definition of such term herein shall govern.
(b) The following words and phrases shall have the following meanings with respect to the Series 2009-3 Notes and the definitions of such terms are applicable to the singular as well as the plural form of such terms and to the masculine as well as the feminine and neuter genders of such terms:
ABCR is defined in the recitals hereto.
ABG means Avis Budget Group, Inc.
ABRCF is defined in the recitals hereto.
Acquiring APA Bank is defined in Section 11.1(c).
Acquiring Purchaser Group is defined in Section 11.1(e).
Additional CP Conduit Purchaser is defined in Section 2.6(e).
Additional Funding Agent is defined in Section 2.6(e).
Adjusted LIBO Rate means, with respect to each day during each Eurodollar Period, pertaining to a portion of the Purchaser Group Invested Amount with respect to any Purchaser Group allocated to a Eurodollar Tranche, an interest rate per annum (rounded upwards, if necessary, to the nearest 1/16th of 1%) equal to the LIBO Rate for such Eurodollar Period multiplied by the Statutory Reserve Rate.
Adjusted Net Book Value means, as of any date of determination, with respect to each Adjusted Program Vehicle as of such date, the product of 0.965 and the Net Book Value of such Adjusted Program Vehicle as of such date.
Administrative Agent is defined in the recitals hereto.
Administrator is defined in the recitals hereto.
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Affected Party means any CP Conduit Purchaser and any Program Support Provider with respect to such CP Conduit Purchaser.
Alternate Base Rate means, for any day, a rate per annum equal to the greater of (a) the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1%. Any change in the Alternate Base Rate due to a change in the Prime Rate or the Federal Funds Effective Rate shall be effective from and including the effective day of such change in the Prime Rate or the Federal Funds Effective Rate, respectively.
APA Bank is defined in the recitals hereto.
APA Bank Funded Amount means, with respect to any Purchaser Group for any day, the excess, if any, of the Purchaser Group Invested Amount with respect to such Purchaser Group over the CP Conduit Funded Amount for such day.
APA Bank Percentage means, with respect to any APA Bank, the percentage set forth opposite the name of such APA Bank on Schedule I.
Applicable Margin is defined in the Fee Letter.
ARAC means Avis Rent A Car System, LLC.
Article VII Costs means any amounts due pursuant to Article VII and any interest accrued on such amounts pursuant to Section 3.4.
Asset Purchase Agreement means, with respect to any CP Conduit Purchaser, the asset purchase agreement, liquidity agreement or other agreement among such CP Conduit Purchaser, the Funding Agent with respect to such CP Conduit Purchaser and the APA Bank with respect to such CP Conduit Purchaser, as amended, modified or supplemented from time to time.
Available APA Bank Funding Amount means, with respect to any Purchaser Group for any Business Day, the sum of (i) the portion of such Purchaser Groups Commitment Percentage of the Series 2009-3 Initial Invested Amount not to be funded by such Purchaser Group by issuing Commercial Paper if such Business Day is the Series 2009-3 Closing Date, (ii) the portion of the APA Bank Funded Amount with respect to such Purchaser Group not allocated to a Eurodollar Tranche on such Business Day, (iii) the portion of the APA Bank Funded Amount with respect to such Purchaser Group allocated to any Eurodollar Tranche the Eurodollar Period in respect of which expires on such Business Day and (iv) the portion of such Purchaser Groups Purchaser Group Increase Amount for such Business Day not to be funded by such Purchaser Group by issuing Commercial Paper.
Available CP Funding Amount means, with respect to any Purchaser Group for any Business Day, the sum of (i) the portion of such Purchaser Groups Commitment Percentage of the Series 2009-3 Initial Invested Amount to be funded by such Purchaser Group by issuing Commercial Paper if such Business Day is the Series 2009-3 Closing Date, (ii) the portion of the CP Conduit Funded Amount with respect to such Purchaser Group allocated to any CP Tranche, the CP Rate Period in respect of which expires on such Business Day and (iii) the portion of such
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Purchaser Groups Purchaser Group Increase Amount for such Business Day to be funded by such Purchaser Group by issuing Commercial Paper.
Bank Accounts is defined in Section 11.16(f).
Benefited Purchaser Group is defined in Section 11.3(a).
Board means the Board of Governors of the Federal Reserve System or any successor thereto.
BRAC means Budget Rent A Car System, Inc.
Business Day means any day other than (a) a Saturday or a Sunday or (b) a day on which banking institutions in New York, New York or the city in which the corporate trust office of the Trustee is located are authorized or obligated by law or executive order to close.
Canadian Agent means the administrative agent under the Canadian Variable Funding Note Facility, as specified therein, and its successors and assigns thereunder.
Canadian Commitment means, with respect to any APA Bank, the obligation of such APA Bank to make advances to the Canadian Issuer under the Canadian Variable Funding Note Facility in an aggregate principal amount outstanding not to exceed the amount set forth opposite such APA Banks name on any schedule or addendum thereto, as such amount may be modified from time to time in accordance with the provisions of the Canadian Variable Funding Note Facility.
Canadian Issuer means the issuer under the Canadian Variable Funding Note Facility, as specified therein.
Canadian Variable Funding Note Facility means a Series Supplement (as defined in Exhibit J hereto) to be entered into by, among others, the Canadian Issuer and the APA Banks, in connection with the issuance by the Canadian Issuer of a Series (as defined in Exhibit J hereto) of variable funding Notes (as defined in Exhibit J hereto), pursuant to which the APA Banks will commit to purchase such variable funding Notes and make advances thereunder to the Canadian Issuer, in accordance with the terms set forth in the term sheet attached as Exhibit J hereto, evidenced by and subject to the completion of documentation in form and substance satisfactory to each of the APA Banks.
Certificate of Lease Deficit Demand means a certificate substantially in the form of Annex A to any Series 2009-3 Letter of Credit.
Certificate of Termination Date Demand means a certificate substantially in the form of Annex D to any Series 2009-3 Letter of Credit.
Certificate of Termination Demand means a certificate substantially in the form of Annex C to any Series 2009-3 Letter of Credit.
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Certificate of Unpaid Demand Note Demand means a certificate substantially in the form of Annex B to any Series 2009-3 Letter of Credit.
Change in Control means (a) ABG shall at any time cease to own or control, directly or indirectly, greater than 50% of the Voting Stock of ABCR, ARAC or BRAC or (b) either ABRCF or AESOP Leasing is no longer indirectly wholly-owned by ABCR.
Change in Law means (a) any law, rule or regulation or any change therein or in the interpretation or application thereof (whether or not having the force of law), in each case, adopted, issued or occurring after the Series 2009-3 Closing Date or (b) any request, guideline or directive (whether or not having the force of law) from any government or political subdivision or agency, authority, bureau, central bank, commission, department or instrumentality thereof, or any court, tribunal, grand jury or arbitrator, or any accounting board or authority (whether or not part of government) which is responsible for the establishment or interpretation of national or international accounting principles, in each case, whether foreign or domestic (each an Official Body) charged with the administration, interpretation or application thereof, or the compliance with any request or directive of any Official Body (whether or not having the force of law) made, issued or occurring after the Series 2009-3 Closing Date.
Claim is defined in Section 2.8.
Commercial Paper means, with respect to any CP Conduit Purchaser, the promissory notes issued by, or for the benefit of, such CP Conduit Purchaser in the commercial paper market.
Commitment means, with respect to the APA Banks included in any Purchaser Group, the obligation of such APA Banks to purchase a Series 2009-3 Note on the Series 2009-3 Closing Date and, thereafter, to maintain and, subject to certain conditions, increase the Purchaser Group Invested Amount with respect to such Purchaser Group, in each case, in an amount up to the Maximum Purchaser Group Invested Amount with respect to such Purchaser Group.
Commitment Amount means, with respect to the APA Banks included in any Purchaser Group, an amount equal to 102% of the Maximum Purchaser Group Invested Amount with respect to such Purchaser Group.
Commitment Fee is defined in Section 2.7(e).
Commitment Fee Rate is defined in the Fee Letter.
Commitment Percentage means, on any date of determination, with respect to any Purchaser Group, the ratio, expressed as a percentage, which such Purchaser Groups Maximum Purchaser Group Invested Amount bears to the Series 2009-3 Maximum Invested Amount on such date.
Company indemnified person is defined in Section 2.8.
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Conduit Assignee means, with respect to any CP Conduit Purchaser, any commercial paper conduit administered by the Funding Agent with respect to such CP Conduit Purchaser and designated by such Funding Agent to accept an assignment from such CP Conduit Purchaser of the Purchaser Group Invested Amount or a portion thereof with respect to such CP Conduit Purchaser pursuant to Section 11.1(b).
Confirmation Condition means, with respect to any Bankrupt Manufacturer which is a debtor in Chapter 11 Proceedings, a condition that shall be satisfied upon the bankruptcy court having competent jurisdiction over such Chapter 11 Proceedings issuing an order that remains in effect approving (i) the assumption of such Bankrupt Manufacturers Manufacturer Program (and the related Assignment Agreements) by such Bankrupt Manufacturer or the trustee in bankruptcy of such Bankrupt Manufacturer under Section 365 of the Bankruptcy Code and at the time of such assumption, the payment of all amounts due and payable by such Bankrupt Manufacturer under such Manufacturer Program and the curing of all other defaults by the Bankrupt Manufacturer thereunder or (ii) the execution, delivery and performance by such Bankrupt Manufacturer of a new post-petition Manufacturer Program (and the related assignment agreements) on the same terms and covering the same Vehicles as such Bankrupt Manufacturers Manufacturer Program (and the related Assignment Agreements) in effect on the date such Bankrupt Manufacturer became subject to such Chapter 11 Proceedings and, at the time of the execution and delivery of such new post-petition Manufacturer Program, the payment of all amounts due and payable by such Bankrupt Manufacturer under such Manufacturer Program and the curing of all other defaults by the Bankrupt Manufacturer thereunder; provided that notwithstanding the foregoing, the Confirmation Condition shall be deemed satisfied until the 90th calendar day following the initial filing in respect of such Chapter 11 Proceedings.
Consent is defined in Article V.
Consent Period Expiration Date is defined in Article V.
Consolidated EBITDA has the meaning set forth in the Credit Agreement.
Consolidated Leverage Ratio has the meaning set forth in the Credit Agreement.
CP Conduit Funded Amount means, with respect to any Purchaser Group for any day, the portion of the Purchaser Group Invested Amount with respect to such Purchaser Group funded by such Purchaser Group through the issuance of Commercial Paper outstanding on such day.
CP Conduit Purchaser is defined in the recitals hereto.
CP Rate Period means, with respect to any CP Tranche, a period of days not to exceed 270 days commencing on a Business Day selected in accordance with Section 2.7(b); provided that (x) if a CP Rate Period would end on a day that is not a Business Day, such CP Rate Period shall end on the next succeeding Business Day and (y) during the Series 2009-3 Amortization Period, each CP Rate Period shall end on or prior to the next succeeding Distribution Date.
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CP Tranche means, with respect to a Match Funding CP Conduit Purchaser, a portion of the CP Conduit Funded Amount with respect to such Match Funding CP Conduit Purchaser for which the Monthly Funding Costs with respect to such Match Funding CP Conduit Purchaser is calculated by reference to a particular Discount and a particular CP Rate Period.
Credit Agreement means the Credit Agreement, dated as of April 19, 2006, among Avis Budget Holdings, LLC, as Borrower, ABCR, as Borrower, the subsidiary borrowers referred to therein, the several lenders referred to therein, JPMorgan Chase Bank, N.A., as Administrative Agent, Deutsche Bank Securities Inc., as Syndication Agent, each of Bank of America, N.A., Calyon New York Branch and Citicorp USA, Inc., as Documentation Agents and Wachovia Bank, National Association, as Co-Documentation Agent, as amended by the First Amendment thereto dated as of December 23, 2008 but without giving effect to any further amendment thereto made subsequent to the Effective Date unless such amendment has been approved in writing by the Requisite Noteholders.
DBNY is defined in the recitals hereto.
Decrease is defined in Section 2.5(a).
Demand Note Issuer means each issuer of a Series 2009-3 Demand Note.
Demand Note Preference Payment Amount means, as of any day, (i) the aggregate amount of all proceeds of demands made on the Series 2009-3 Demand Notes pursuant to Section 3.5(c)(iii) or 3.5(d)(ii) that were deposited into the Series 2009-3 Distribution Account and paid to the Series 2009-3 Noteholders during the one-year period ending on such day; provided, however, that if an Event of Bankruptcy (or the occurrence of an event described in clause (a) of the definition thereof, without the lapse of a period of 60 consecutive days) with respect to a Demand Note Issuer shall have occurred during such one-year period, the Demand Note Preference Payment Amount as of such day shall equal the Demand Note Preference Payment Amount as if it were calculated as of the date of such occurrence minus (ii) the aggregate amount withdrawn from the Series 2009-3 Reserve Account or the Series 2009-3 Cash Collateral Account and paid to a Funding Agent pursuant to Section 3.7(e) on account of a Preference Amount.
Designated Amounts is defined in Article V.
Disbursement means any Lease Deficit Disbursement, any Unpaid Demand Note Disbursement, any Termination Date Disbursement or any Termination Disbursement under a Series 2009-3 Letter of Credit, or any combination thereof, as the context may require.
Discount means, (a) with respect to any Match Funding CP Conduit Purchaser, the interest or discount component of the Commercial Paper issued by such Match Funding CP Conduit Purchaser to fund or maintain the CP Conduit Funded Amount with respect to such Match Funding CP Conduit Purchaser, including an amount equal to the portion of the face amount of the outstanding Commercial Paper issued to fund or maintain the CP Conduit Funded Amount with respect to such CP Conduit Purchaser that corresponds to the portion of the proceeds of such Commercial Paper that was used to pay the interest or discount component of maturing Commercial Paper issued to fund or maintain such CP Conduit Funded Amount, to the
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extent that such CP Conduit Purchaser has not received payments of interest in respect of such interest component prior to the maturity date of such maturing Commercial Paper, and including the portion of such interest or discount component constituting dealer or placement agent commissions and (b) with respect to any Pooled Funding CP Conduit Purchaser, the amount of interest or discount to accrue on or in respect of the Commercial Paper issued by such Pooled Funding CP Conduit Purchaser allocated, in whole or in part, by the Funding Agent with respect to such Pooled Funding CP Conduit Purchaser, to fund the purchase or maintenance of the CP Conduit Funded Amount with respect to such Pooled Funding CP Conduit Purchaser (including, without limitation, any interest attributable to the commissions of placement agents and dealers in respect of such Commercial Paper and any costs associated with funding small or odd-lot amounts, to the extent that such commissions or costs are allocated, in whole or in part, to such Commercial Paper by such Funding Agent).
Effective Date is defined in Section 6.1.
Eligible Assignee means a financial institution having short-term debt ratings of at least A-1 from Standard & Poors and





