Document:

exhibit10252.htm

Exhibit 10.252

 

 

SECOND AMENDMENT TO THE

SECOND AMENDED AND RESTATED

EMPLOYMENT CONTINUATION PLAN FOR KEY EMPLOYEES

 

The Second Amended and Restated Employment Continuation Plan for Key Employees of Dollar Thrifty Automotive Group, Inc., effective as of December 9, 2008, as amended March 24, 2010 (the “Plan”) is hereby amended effective December 9, 2011 as follows:

	
1.

	
The references to Section 3(d)(iii) in the penultimate paragraph of Section 3(e) are hereby amended to refer to Section 3(e)(iii).

	
2.

	
Section 3(i) is hereby amended to read as follows:

 

(i)           Continuation Period.  The term “Continuation Period” shall mean one (1) year for Key Employees listed on Annex B.2, one and one-half (1.5) years for Key Employees listed on Annex B.1, and two and one-half (2.5) years for Key Employees listed on Annex A.

 

	
3.

	
Delete Section 4(d) and replace it with the following new Section 4(d):

(d)           A Key Employee who is listed on Annex B.1 and B.2 will be eligible for Employment Continuation Compensation if, within two years after the occurrence of a Change in Control, (i) the Key Employee’s employment with the Company is terminated by the Company other than for Cause, death or Disability; (ii) the Key Employee voluntarily terminates his employment with the Company following (A) the Key Employee’s annualized base compensation being reduced to 90% or less of his Base Pay (which shall be deemed to result in a material diminution in base compensation) or (B) a significant adverse change in the nature or scope of the authorities, powers, functions, responsibilities or duties attached to the position with the Company which the Key Employee held immediately prior to the Change in Control.

 

	
4.

	
Delete Section 4(e) and replace it with the following new Section4(e).

(e)           Notwithstanding anything herein to the contrary, a Key Employee shall not be eligible for Employment Continuation Compensation unless (i) the Key Employee’s employment is terminated pursuant to Section 4(c)(i) or 4(d)(i), or (ii) a condition as set forth in 4(c)(ii) or 4(d)(ii), as applicable, exists and (A) the Key Employee provides notice to the Company within 90 days of the existence of the condition, (B) the Company does not remedy the condition within 30 days of receipt of such notice, and (C) the Key Employee terminates employment within two years following the initial occurrence of the applicable event.

 

	
5.

	
Section 5(a)(iv) is hereby amended in its entirety as follows:

 

(iv)           Subject to Section 8, each Key Employee who is listed on Annex B.1 or B.2 and becomes eligible for Employment Continuation Compensation in accordance with Section 4(d) shall receive Employment Continuation Pay from the Company as follows:

 

  

1

  

 

A.           A lump sum payment in an amount equal to (i) the Accrued Obligations and (ii) the prorated portion of any annual bonus payable in the year in which the Key Employee’s Termination Date occurs, determined at the greater of actual or target in accordance with the provisions of the annual bonus plan applicable to the Key Employee or any successor plan; and

 

B.           For those Key Employees listed on Annex B.1, a lump sum payment in an amount equal to the sum of Key Employee’s amount of Base Pay and Incentive Pay, multiplied by one and one-half (1.5) and for those Key Employees listed on Annex B.2, a lump sum payment in an amount equal to the sum of Key Employee’s amount of Base Pay and Incentive Pay.

	
6.

	
Replace existing Annex B with attached Annex B.1 and Annex B.2.

	
7.

	
All other provisions of the Plan not otherwise amended herein remain in full force and effect.

IN WITNESS WHEREOF, Scott L. Thompson, President and Chief Executive Officer, has caused this Amendment to be executed effective the 9th day of December, 2011.

 

 

	 	 	DOLLAR THRIFTY AUTOMOTIVE GROUP, INC. 
	ATTEST: 	 	 
	 	 	 
	 	 	 
	Vicki J. Vaniman 	 	Scott L. Thompson 
	Secretary 	 	President and Chief Executive Officer 
	 	 	 

 

  

2

  

 

Annex A

 

Key Employees

 

R. Scott Anderson

H. Clifford Buster

Rick Morris

Vicki J. Vaniman

 

 

  

3

  

 

Annex B.1

 

Key Employees

 

 

Jeffrey A. Cerefice

Lynne Pritchard

 

 

  

4

  

 

Annex B.2

 

Key Employees

 

Thomas Adams

Darren Arrington

Fred Chesebro

Joseph Colavecchia

Charles Coniglio

Bill Copeland

Edward “Tony” Davis

James Duffy

Richard Halbrook

Kindra Marts

Vana Matte

Michael McMahon

Kimberly Paul

Les Pritt

Daniel Regan

James R. Ryan

Michael Souza

  

5exhibit10253.htm

Exhibit 10.253

 

 

DOLLAR THRIFTY AUTOMOTIVE GROUP, INC.

DIRECTOR COMPENSATION

Effective January 1, 2012, Until Further Modified

 

 

	
I.

	
Payment for Services.  Directors who are not officers or employees of Dollar Thrifty Automotive Group, Inc. (“DTAG” or the “Company”), or any of its affiliates (“Independent Directors”) will be paid as follows for their services on the Board of Directors of DTAG (the “Board”):

A.           Annual Retainer.

	
·    

	
Each Independent Director will receive an annual Board retainer of $80,000.

	
·    

	
Each Committee Chairman will be paid an additional annual chairman retainer as follows:

	
o    

	
Audit Committee $14,000

	
o    

	
Governance Committee $9,000

	
o    

	
Human Resources and Compensation Committee $12,000

	
·    

	
The Lead Director will be paid an additional $20,000 annually.

	
  

	
B.

	
Meeting Fees. There will be no fees paid for a director’s attendance at Board or committee meetings.

	
  

	
C.

	
Annual Equity Grant.  In January of each calendar year each Independent Director will be granted Restricted Stock Units having a value of $100,000.00, determined based on the Market Value Per Share of the underlying Common Stock on the date of grant, as defined in and pursuant to DTAG’s Second Amended and Restated Long-Term Incentive Plan and Director Equity Plan (the “LTIP”).  The Restricted Stock Units will vest on December 31 of the year in which they are granted, provided that the Independent Director is still serving on the Board on such date, and unless the Independent Director has made an election to defer distribution of the Common Stock underlying the Restricted Stock Units, such Common Stock will be distributed on such December 31.  If the Independent Director’s service terminates prior to December 31, but at least six months following the grant date for any reason other than a Change in Control (as defined in the LTIP), a pro rata portion of the Restricted Stock Units shall vest on the date of separation from service based on the Independent Director’s period of service during the year and the Common Stock underlying the Restricted Stock Units will be distributed within ninety (90) days of such separation from service.  In the event of a Change in Control, the Restricted Stock Units shall become fully vested immediately upon the date of the Change in Control and distributed within ninety (90) days of the Change in Control unless otherwise deferred by a Director to a different date.

 

  

1

  

 

	
II.

	
Deferral Option.  Each Independent Director shall have the option to defer his or her annual equity grant to be issued on a specific date in a future year, such as 90 days following any separation of service from the Board.  An Independent Director electing to defer his or her grant must make such election by December 31 of the year preceding the year in which the compensation to be deferred would be earned by completing the Deferral Election Form in the form provided by the Company and returning such form to the Company no later than December 31 of the year preceding the year in which the compensation to be deferred would be earned.  Notwithstanding the foregoing, during the first year in which an Independent Director becomes eligible to defer his or her annual retainer, such election may be made within 30 days of becoming eligible to make such deferral, provided that such deferral election shall only apply to amounts earned with respect to services rendered after the date on which such deferral election is made.

	
III.

	
Payment Method.  All retainers will be paid in cash quarterly in arrears and the annual equity grant will be paid in DTAG stock at the times set forth in Section I.C. above, unless deferred by the Independent Director.

	
IV.

	
Additional Benefits.  While traveling, Independent Directors as well as directors who are not Independent Directors will be provided rental cars at any Dollar Rent A Car or Thrifty Car Rental  location (whether corporately operated or operated by a licensee of DTAG) or any successor company location without charge for product and service evaluation.  This benefit will continue for each director following their departure from the Board if (i) the director has been a member of the Board for more than five (5) years; or (ii) separation from service occurs following a Change in Control.  This benefit cannot be exchanged for cash or any other benefit.

 

 

	 	
[APPROVED by the Board of Directors of 

Dollar Thrifty Automotive Group, Inc., 

effective January 1, 2012.]

 

 

  

2exhibit10254.htm

Exhibit 10.254

 

Dollar Thrifty Automotive Group, Inc

2012 Executive Incentive Compensation Plan

Purpose

This 2012 Executive Incentive Compensation Plan (the “2012 Plan”) is designed to motivate and reward executives for goal and objective achievement and for contributing to the overall performance of Dollar Thrifty Automotive Group, Inc. and its subsidiaries (“DTG” or, collectively, the “Company”) for the year 2012.

Plan Participants

Participation in the 2012 Plan is limited to executive personnel in pay grades 40 and above (“Participants”).

Award

The incentive compensation award (the “Award”) is based on a percentage of the Bonus Pool.

Plan Provisions

 

	
1.

	

The Award will be based on DTG’s earnings before interest, taxes, depreciation and amortization (“EBITDA”), excluding merger related expenses and  plus or minus any other adjustments approved by the Human Resources and Compensation Committee of the Board of Directors of DTG (the “HRCC”) in its sole discretion. A bonus pool will be funded based upon a percentage of EBITDA (the “Bonus Pool”).

 

	
  

	
●

	
No funding of the Bonus Pool will occur for EBITDA below a set minimum threshold or for EBITDA in excess of a set maximum.

 

	
  

	
●

	

Participants will be eligible to receive a percentage of the total Bonus Pool, as determined by the HRCC.

 

	
  

	
●

	

Any amounts to be awarded for EBITDA between the minimum threshold and a pre-determined amount will be paid in cash and any amounts to be awarded for EBITDA in excess of that pre-determined amount will be paid  pursuant to a grant of performance share units (“PSUs”), with terms and conditions established by Company, including the following vesting schedule:

  

1

  

 

25% of the PSUs will vest on 12/31/2013 and the remaining 

75% of the PSUs will vest on 12/31/2014.

	
2.

	
Except as provided in Section 6 below, Awards, if any, will be paid subsequent to the confirmation of the 2012 financial results of DTG.  The HRCC reserves the right to determine the appropriateness of Awards under the 2012 Plan after review of business conditions and the Company’s continued viability after the close of the 2012 fiscal period.  Awards may not be approved to be paid if it is determined by the HRCC that the business is not stable and/or not properly positioned for success in 2012.

	
3.

	
Except as provided in Section 6 below, Participants must be employed by the Company on the Award payment date to be eligible for an Award and must be employed on each of the applicable vesting dates of the PSUs in order to receive them.

	
4.

	
Employees who are hired or promoted into an eligible pay grade during 2012 may be considered for participation in the 2012 Plan on a prorated basis based on the number of days worked during the year 2012 in such new pay grade.

	
5.

	
Any special circumstances or exceptions not addressed in this 2012 Plan will be resolved by the President and Chief Executive Officer of DTG, in his sole discretion but subject to approval of the HRCC. The HRCC further reserves the right to determine eligibility under the 2012 Plan and to interpret and construe the terms of the 2012 Plan.  The 2012 Plan may be amended, suspended or terminated by the HRCC.

	
6.

	
If there is a “Change in Control” of the Company (within the meaning of the Company’s Second Amended and Restated Employment Continuation Plan and the Employment Continuation Agreement with Scott L. Thompson, both dated December 9, 2008 (collectively, the “Arrangements”) during the 2012 fiscal year or in 2013 prior to the scheduled payment date for Awards under the 2012 Plan, the Awards will be paid (a) at the time provided in the Arrangements in the case of Participants whose employment is terminated prior to the Award payment date under circumstances entitling them to severance under the Arrangements and (b) on the Award payment date to Participants who remain employed by the Company through the Award payment date.  All Awards will be (i)  in the form of a lump sum cash payment determined on a basis that is at least as favorable for each Participant as the allocation methodology utilized for the actual payment of Awards pursuant to the 2011 Executive Incentive Compensation Plan and (ii) based on the accounting accrual rate, annualized for 2012 (the same deemed to be the expected 2012 stand alone financial performance at the time of the Change in Control) as of the date immediately prior to the Change in Control and as determined by the Board or the HRCC or based on the actual performance for the 2012 fiscal year as determined at the time of payment, if greater.

 

  

2

  

 

	
  

	
Further, if there is a Change in Control of the Company (within the meaning of the Arrangements) during the 2012 fiscal year or in 2013 prior to the scheduled payment date for Awards under the 2012 Plan, the target bonus opportunity for a Participant referenced in the Arrangements will be deemed to be the percentage allocation utilized for the actual payment of Awards pursuant to the 2011 Executive Incentive Plan for such Participant as updated to reflect the 2012 EBITDA pool and using the accounting accrual rate, annualized for 2012 and as determined by the Board or the HRCC,  as of the date immediately prior to the Change in Control.  In the event there are individuals who are Participants in the 2012 Plan but were not in the 2011 Executive Incentive Plan, then the percentage allocation for such new Participants will be the average of the percentage allocation of all Participants holding a like office as set forth in the 2011 Executive Incentive Plan.

	
7.

	
If a Participant in the 2012 Plan, during his or her employment with the Company or within six (6) months following the payment of the Award, engages in any material Detrimental Activity (defined below), and the Board of Directors of DTG (or any committee as delegated by the Board) (the “Board”) shall so find, the Participant shall return to the Company all or so much of the Award (as determined by the Board) made to the Participant under the 2012 Plan.  To the extent the amount of the Award is not fully paid and returned to the Company, the Company may set off the amount payable to it against any amounts that may be owing from time to time to the Participant, whether as wages, deferred compensation or vacation pay or in the form of any other benefit.

As used herein, “Detrimental Activity” means:

	
  

	
(i)

	
Engaging in any activity, as an employee, principal, agent, or consultant for another entity that competes with the Company in any service, system, or business activity for which the Participant has had any direct responsibility during the last two years of his or her employment with the Company, in any territory in which the Company manufactures, sells, markets, services, or installs such product, service, or system, or engages in such business activity.

	
  

	
(ii)

	
Soliciting any employee of the Company to terminate his or her employment with the Company.

	
  

	
(iii)

	
The disclosure to anyone outside the Company, or the use in other than the Company’s business, without prior written authorization from the Company, of any confidential, proprietary or trade secret information or material relating to the business of the Company, acquired by the Participant during his or her employment with the Company or while acting as a consultant for the Company thereafter.

 

  

3

  

 

	
  

	
(iv)

	
The failure or refusal to disclose promptly and to assign to the Company upon request all right, title and interest in any invention or idea, patentable or not, made or conceived by the Participant during employment by the Company, relating in any manner to the actual or anticipated business, research or development work of the Company or the failure or refusal to do anything reasonably necessary to enable the Company to secure a patent where appropriate in the United States and in other countries.

	
  

	
(v)

	
Activity that results in Termination for Cause. “Termination for Cause” shall mean a termination:

	
  

	
(a)

	
due to the Participant’s willful and continuous gross neglect of his or her duties for which he or she is employed, or

 

	
  

	
(b)

	

due to an act of dishonesty on the part of the Participant constituting a felony resulting or intended to result, directly or indirectly, in his or her gain for personal enrichment at the expense of the Company.

	
  

	
(vi)

	
Any other conduct or act determined to be injurious, detrimental or prejudicial to any significant interest of the Company unless the Participant acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company.

	
  

	
(vii)

	
Conduct by a Participant, including errors, omissions or fraud that caused or partially caused the need for the restatement of any financial statements or financial results of the Company.

 

	
8.

	
Miscellaneous

 

	
  

	
●

	

No Continued Employment.  Nothing in this Plan is intended to be or shall be construed as a promise of continued employment or employment for any specified period.

 

	
  

	
●

	

Agreement and Governing Law.  The Plan shall be governed by and construed in accordance with the laws of the State of Oklahoma without reference to principles of conflicts of laws.  Any dispute, claim or cause of action related to this Plan shall be commenced in the applicable state or federal courts located in Tulsa County, Oklahoma.

 

	
  

	
●

	

Descriptive Headings.  Descriptive headings are for convenience only and shall not control or affect the meaning or construction of any provision of the Plan.

  

4

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