Document:

SEC Exhibit

EXHIBIT 10.35

APPLIED MICRO CIRCUITS CORPORATION 
PERFORMANCE/RETENTION RESTRICTED STOCK UNIT AWARD GRANT NOTICE 
2011 EQUITY INCENTIVE PLAN

Applied Micro Circuits Corporation (the “Company”), pursuant to its 2011 Equity Incentive Plan (the “Plan”), hereby awards to you (the “Participant”) a Restricted Stock Unit Award (the “Award”) covering the number of shares of the Company’s Common Stock set forth below (this “Notice of Grant”). 

Participant     
Date of Grant:     
Consideration:    Participant’s services to the Company

The Participant has been granted an Award of market-performance based Restricted Stock Units (“Market Stock Units”), subject to the terms and conditions of the Plan, this Notice of Grant and the Market Stock Unit Agreement attached hereto as Exhibit A (the “Agreement”) as follows: 
 
	
			
	Target Number of Market Stock Units:
	 
	 

	 
	 

	Maximum Number of Market Stock Units:
	 
	 

	 
	 

	Performance Periods:
	 
	Beginning on the Date of Grant and ending two (2) years from the Date of Grant (the “First Performance Period”); and Beginning on the Date of Grant and ending three (3) years from the Date of Grant (the “Second Performance Period”), in each case, subject to the terms of the Agreement.

	 
	 

	Performance Matrix:
	 
	The number of Market Stock Units in which Participant may vest in accordance with the Vesting Schedule will depend upon the Company’s Stock Price Performance (as defined in the Agreement) as compared to the SPDR S&P Semiconductor Index (XSD) Performance (as defined in the Agreement) for the First and Second Performance Periods and will be determined in accordance with Section 1 of the Agreement.

	 
	 

	Vesting Schedule:
	 
	Subject to the Agreement and the terms of the Plan, the Participant will vest in his or her Calculated Market Stock Units (as defined below) on November 16, 2017 (the “First Vesting Date”) for the First Performance Period and November 16, 2018 (“Second Vesting Date”) for the Second Performance Period (as further described in the Agreement).

By accepting this agreement online, the Participant and the Company agree that this Award is granted under and governed by the terms and conditions of the Plan and the Agreement, each of which are made a part of this document. Participant further agrees to accept, acknowledge and execute this Agreement as a condition to receiving any Market Stock Units under this Award. 

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Nothing in this Notice of Grant, the Agreement or the Plan shall confer upon Participant any right to continue in service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Parent or Subsidiary employing or retaining Participant) or of Participant, which rights are hereby expressly reserved by each, to terminate Participant’s service at any time for any reason, with or without cause. 

APPLIED MICRO CIRCUITS CORPORATION
By: 

______________________________

L. William Caraccio
Title:    Vice President, General Counsel and Secretary, Chief Legal Officer

Acknowledged, accepted and agreed by participant:

______________________________
Signature

Date: _________________________

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EXHIBIT A
MARKET STOCK UNIT AGREEMENT

All capitalized terms used herein and not defined in this Market Stock Unit Agreement shall be defined in the Notice of Grant and/or the Plan.
1. Grant.
(a) The Company hereby grants to Participant under the Plan, an Award of Market Stock Units, subject to all of the terms and conditions in the Notice of Grant, this Agreement and the Plan.
(b) The Target Number of Market Stock Units granted to the Participant is set forth in the Notice of Grant.  The actual number of Market Stock Units in which the Participant may vest in accordance with the Vesting Schedule (also set forth in the Notice of Grant), will depend upon the Company’s Stock Price Performance as compared to the SPDR S&P Semiconductor Index (XSD) Performance calculated on both the First Vesting Date and Second Vesting Date with fifty percent (50%) of the Market Stock Units eligible to vest on the First Vesting Date and fifty percent (50%) of the Market Stock Units eligible to vest on the Second Vesting Date. The actual number of Market Stock Units that will vest on each of the First Vesting Date and Second Vesting Date (the “Calculated Market Stock Units”) will be determined as follows:
(i) Performance Calculation.
1. The “Company’s Stock Price Performance” means the percentage increase or decrease in (A) the average adjusted closing price per share of the Company’s common stock for the last thirty (30) market trading days prior to the commencement of the First Performance Period and Second Performance Period, respectively, compared to (B) the average adjusted closing price of the Company’s common stock for the last thirty (30) market trading days prior to the First Vesting Date or the Second Vesting Date, respectively.  Notwithstanding the foregoing, in the event of a Change in Control of the Company (as defined in the Plan), the “Company’s Stock Price Performance” means the percentage increase or decrease in (x) the average adjusted closing price per share of the Company’s common stock for the last thirty (30) market trading days prior to the commencement of the First Performance Period and Second Performance Period, respectively, compared to (y) the per share value of the Company’s common stock paid to its stockholders in connection with the Change in Control.
2. The “SPDR S&P Semiconductor Index (XSD) Performance” means the percentage increase or decrease in (A) the adjusted index value of the SPDR S&P Semiconductor Index (XSD) Performance for the last thirty (30) market trading days prior to the commencement of the First Performance Period and Second Performance Period, respectively, compared to (B) the adjusted index value of the SPDR S&P Semiconductor Index (XSD) Performance for the last thirty (30) market trading days prior to the First Vesting Date or the Second Vesting Date, respectively.
3. The Company’s Stock Price Performance will be compared against the SPDR S&P Semiconductor Index (XSD) Performance, with each expressed as a positive or negative growth rate percentage for the applicable Performance Period, to result in a positive or negative growth rate percentage (the “Growth Rate Delta”) equal to the Company’s Stock Price Performance minus the SPDR S&P Semiconductor Index (XSD) Performance. The Growth Rate Delta will be calculated on both the First Vesting Date and the Second Vesting Date, respectively.
(ii) Calculated Market Stock Units.  The number of Market Stock Units that will vest on the First Vesting Date or Second Vesting Date, as applicable, will be based on the following calculation:
1.If the Growth Rate Delta is equal to zero percent (0%) such that the Company’s Stock Price Performance is equal to the SPDR S&P Semiconductor Index (XSD) Performance, then fifty percent (50%) of the Target Number of Market Stock Units will vest on the applicable vesting date because the Growth Rate Delta correlates to one hundred percent (100%) of the achievable vesting that may occur for the applicable Performance Period.

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2.If the Growth Rate Delta is greater or less than zero percent (0%), then the number of Market Stock Units that will vest on the applicable vesting date will be equal to fifty percent (50%) of the Target Number of Market Stock Units multiplied by the applicable Market Stock Unit Payout Percentage, as set forth in the attached Schedule A; provided, however that, the maximum number of Market Stock Units that will vest on an applicable vesting date shall be capped at then fifty percent (50%) of the Target Number of Market Stock Units in the event that the Company’s applicable Stock Price Performance is less than zero percent (0%).
Examples of Market Stock Unit Payment Percentages for positive, negative and zero Growth Rate Deltas are in attached Schedule A.
2. Company’s Obligation to Pay. Each Market Stock Unit represents a value equal to the Fair Market Value of a Share on the date it is granted. Unless and until the Market Stock Units will have vested in the manner set forth herein, Participant will have no right to payment of any such Market Stock Units. Prior to actual payment of any vested Market Stock Units, such Market Stock Unit will represent an unsecured obligation of the Company, payable (if at all) only from the general assets of the Company. Payment of any vested Market Stock Units will be made in whole Shares only and any fractional Shares will be forfeited at the time of payment.
3. Vesting Schedule.  Subject to Section 5, the Market Stock Units awarded by this Agreement will vest in Participant according to the Vesting Schedule set forth on the attached Notice of Grant, subject to Participant continuing to be a Service Provider through each such date.
4. Change in Control.  In the event of a Change in Control, the First and/or Second Performance Period, as applicable, shall be deemed to end upon the closing of the Change in Control for purposes of determining the Company’s Stock Price Performance and the SPDR S&P Semiconductor Index (XSD) Performance and the number of Market Stock Units that are Calculated Market Stock Units will be determined in accordance with the Performance Matrix and Section 1 of this Agreement. The Participant shall vest in the number of Calculated Market Stock Units determined based on the preceding sentence as follows:
(a) On the date of, and contingent upon, the Change in Control, Participant will vest in that number of Calculated Market Stock Units equal to (i) (A) the number of calendar months (including any partial month) that have elapsed from the commencement of the First and/or Second Performance Period, as applicable, through the date of the Change in Control, (B) divided by twenty-four (24) for the First Performance Period or thirty-six (36) for the Second Performance Period, multiplied by (ii) the number of Calculated Market Stock Units, with the result rounded down to the nearest whole Share.
(b) If the Change in Control occurs prior to the First Vesting Date, the Calculated Market Stock Units that do not vest pursuant to Section 4(a) will vest in equal installments on each of the First Vesting Date and the Second Vesting Date, in each case unless vesting is accelerated in accordance with Section 9 of the Plan or any employment, executive severance or other change in control agreement by and between the Company and Participant.
(c) If the Change in Control occurs following the First Vesting Date but prior to the Second Vesting Date, the remaining unvested Calculated Market Stock Units will vest on the Second Vesting Date, unless vesting is accelerated in accordance with Section 9 of the Plan or any employment, executive severance or other change in control agreement by and between the Company and Participant.

(d) In accordance with Section 1 of this Agreement, the Administrator shall not be entitled to eliminate or reduce the number of Calculated Market Stock Units determined in accordance with Section 1 following a Change in Control.
5. Forfeiture upon Termination of Status as a Service Provider. Subject to the provisions of Section 4, if Participant ceases to be a Service Provider for any or no reason, the then-unvested Market Stock Units awarded by this Agreement will thereupon be forfeited at no cost to the Company and Participant will have no further rights thereunder.
6. Payment after Vesting. Any Market Stock Units that vest in accordance with this Agreement will be paid to Participant (or in the event of Participant’s death, to his or her estate) in whole Shares, subject to Participant satisfying any applicable tax withholding obligations as set forth in Section 8. Subject to the provisions of Section 17, any Shares will be issued to Participant as soon as practicable after the relevant vesting date, but in any 

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event, within the period ending on the later to occur of the date that is two-and-one-half months from the end of (a) Participant’s tax year that includes the vesting date, or (b) the Company’s tax year that includes the vesting date.
7. Payments after Death. Any distribution or delivery to be made to Participant under this Agreement will, if Participant is then deceased, be made to Participant’s designated beneficiary, or if no beneficiary survives Participant, the administrator or executor of Participant’s estate. Any such transferee must furnish the Company with (a) written notice of his or her status as transferee, and (b) evidence satisfactory to the Company to establish the validity of the transfer and compliance with any laws or regulations pertaining to said transfer.
8. Withholding of Taxes.

	
			
	 
	(a)
	Generally. The Participant is ultimately liable and responsible for all taxes owed in connection with the Market Stock Units, regardless of any action the Company or any of its Subsidiaries takes with respect to any tax withholding obligations that arise in connection with the Market Stock Units. Neither the Company nor any of its Subsidiaries makes any representation or undertaking regarding the treatment of any tax withholding in connection with the grant or vesting of the Market Stock Units or the subsequent sale of Shares issuable pursuant to the Market Stock Units. The Company and its Subsidiaries do not commit and are under no obligation to structure the Market Stock Units to reduce or eliminate the Participant’s tax liability.

	
			
	 
	(b)
	Payment of Withholding Taxes. Notwithstanding any contrary provision of this Agreement, no Shares will be issued to Participant, unless and until satisfactory arrangements (as determined by the Administrator) will have been made by the Participant with respect to the payment of any taxes which the Company determines must be withheld with respect to the Market Stock Units. The Administrator, in its sole discretion and pursuant to such procedures as it may specify from time to time, may satisfy such tax withholding obligations, in whole or in part, by withholding otherwise deliverable Shares having an aggregate Fair Market Value sufficient to (but not exceeding) the minimum amount required to be withheld. In addition and to the maximum extent permitted by law, the Company has the right to retain without notice from salary or other amounts payable to the Participant, cash having a value sufficient to satisfy any tax withholding obligations that cannot be satisfied by the withholding of otherwise deliverable Shares.

9. Rights as Stockholder. Neither Participant nor any person claiming under or through Participant will have any of the rights or privileges of a stockholder of the Company in respect of any Shares deliverable hereunder, unless and until certificates representing such Shares will have been issued, recorded on the records of the Company or its transfer agents or registrars, and delivered to Participant.
10. No Effect on Service. Participant acknowledges and agrees that the vesting of the Market Stock Units is earned only by Participant continuing to provide services to the Company (a “Service Provider”) through the applicable vesting dates (and not through the act of being hired or acquiring Shares hereunder). Participant further acknowledges and agrees that this Agreement, the transactions contemplated hereunder and the vesting schedule set forth herein do not constitute an express or implied promise of Participant continuing to be a Service Provider for the vesting period, for any period, or at all, and will not interfere with the Participant’s right or the right of the Company (or the Affiliate employing or retaining Participant) to terminate Participant as a Service Provider at any time, with or without cause.
11.  Grant is Not Transferable. Except to the limited extent provided in Section 7, this grant and the rights and privileges conferred hereby will not be transferred, assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and will not be subject to sale under execution, attachment or similar process. Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of this grant, or any right or privilege 

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conferred hereby, or upon any attempted sale under any execution, attachment or similar process, this grant and the rights and privileges conferred hereby immediately will become null and void.
12. Additional Conditions to Issuance of Stock. If at any time the Company will determine, in its discretion, that the listing, registration or qualification of the Shares upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory authority is necessary or desirable as a condition to the issuance of shares to Participant (or his estate), such issuance will not occur unless and until such listing, registration, qualification, consent or approval will have been effected or obtained free of any conditions not acceptable to the Company. Where the Company determines that the delivery of the payment of any Shares will violate federal securities laws or other applicable laws, the Company will defer delivery until the earliest date at which the Company reasonably anticipates that the delivery of Shares will no longer cause such violation. The Company will make all reasonable efforts to meet the requirements of any such state or federal law or securities exchange and to obtain any such consent or approval of any such governmental authority.
13. Plan Governs. This Agreement is subject to all terms and provisions of the Plan. In the event of a conflict between one or more provisions of this Agreement and one or more provisions of the Plan, the provisions of the Plan will govern.
14. Administrator Authority. The Administrator will have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret or revoke any such rules (including, but not limited to, the determination of whether or not any Market Stock Units have vested). All actions taken and all interpretations and determinations made by the Administrator in good faith will be final and binding upon Participant, the Company and all other interested persons. No member of the Administrator will be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or this Agreement.
15. Electronic Delivery. The Company may, in its sole discretion, decide to deliver any documents related to Market Stock Units awarded under the Plan or future Market Stock Units that may be awarded under the Plan by electronic means or request Participant’s consent to participate in the Plan by electronic means. Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.
16. Agreement Severable. In the event that any provision in this Agreement will be held invalid or unenforceable, such provision will be severable from, and such invalidity or unenforceability will not be construed to have any effect on, the remaining provisions of this Agreement.
17. Section 409A. Notwithstanding anything in the Plan or this Agreement to the contrary, if the vesting of the balance, or some lesser portion of the balance, of the Market Stock Units is accelerated in connection with Participant’s termination as a Service Provider (provided that such termination is a “separation from service” within the meaning of Section 409A, as determined by the Company), other than due to death, and if (x) Participant is a “specified employee” within the meaning of Section 409A at the time of such termination as a Service Provider and (y) the payment of such accelerated Market Stock Units will result in the imposition of additional tax under Section 409A if paid to Participant on or within the six (6) month period following Participant’s termination as a Service Provider, then the payment of such accelerated Market Stock Units will not be made until the date six (6) months and one (1) day following the date of Participant’s termination as a Service Provider, unless the Participant dies following his or her termination as a Service Provider, in which case, the Market Stock Units will be paid in Shares to the Participant’s estate as soon as practicable following his or her death. It is the intent of this Agreement to comply with the requirements of Section 409A so that none of the Market Stock Units provided under this Agreement or Shares issuable thereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply. For purposes of this Agreement, “Section 409A” means Section 409A of the Code, and any proposed, temporary or final Treasury Regulations and Internal Revenue Service guidance thereunder, as each may be amended from time to time.   [Would leave in – should not be triggered here with these awards but good to have as default. Ideally would also run by outside tax counsel]
18. Governing Law. This Agreement shall be governed by the laws of the State of California, without giving effect to the conflict of law principles thereof. For purposes of litigating any dispute that arises under the Award or this Agreement, the parties hereby submit to and consent to the jurisdiction of the State of California, and agree that such 

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litigation shall be conducted in the courts of Santa Clara County, California, or the federal courts for the United States for the Northern District of California, and no other courts.

By Participant’s acceptance of this Agreement, Participant represents that he or she is familiar with the terms and provisions of the Plan, and hereby accepts this Agreement subject to all of the terms and provisions thereof. Participant has reviewed the Plan and this Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Agreement and fully understands all provisions of this Agreement. Participant agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan or this Agreement. Participant further agrees to notify the Company upon any change in the residence indicated in the Notice of Grant of Market Stock Units.

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Schedule A
	
			
	AMCC vs XSD
Growth Rate Delta
	Market Stock Unit Payout Percentage

	If Company Growth Rate is Positive
	If Company Growth Rate is Negative

	25.0%
	175%
	100%

	24.0%
	172%
	100%

	23.0%
	169%
	100%

	22.0%
	166%
	100%

	21.0%
	163%
	100%

	20.0%
	160%
	100%

	19.0%
	157%
	100%

	18.0%
	154%
	100%

	17.0%
	151%
	100%

	16.0%
	148%
	100%

	15.0%
	145%
	100%

	14.0%
	142%
	100%

	13.0%
	139%
	100%

	12.0%
	136%
	100%

	11.0%
	133%
	100%

	10.0%
	130%
	100%

	9.0%
	127%
	100%

	8.0%
	124%
	100%

	7.0%
	121%
	100%

	6.0%
	118%
	100%

	5.0%
	115%
	100%

	4.0%
	112%
	100%

	3.0%
	109%
	100%

	2.0%
	106%
	100%

	1.0%
	103%
	100%

	0.0%
	100%
	100%

	-1.0%
	97%
	97%

	-2.0%
	94%
	94%

	-3.0%
	91%
	91%

	-4.0%
	88%
	88%

	-5.0%
	85%
	85%

	-6.0%
	82%
	82%

	-7.0%
	79%
	79%

	-8.0%
	76%
	76%

	-9.0%
	73%
	73%

	-10.0%
	70%
	70%

	-11.0%
	67%
	67%

	AMCC vs XSD
Growth Rate Delta
	Market Stock Unit Payout Percentage

	If Company Growth Rate is Positive
	If Company Growth Rate is Negative

	-12.0%
	64%
	64%

	-13.0%
	61%
	61%

	-14.0%
	58%
	58%

	-15.0%
	55%
	55%

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	-16.0%
	52%
	52%

	-17.0%
	49%
	49%

	-18.0%
	46%
	46%

	-19.0%
	43%
	43%

	-20.0%
	40%
	40%

	-21.0%
	37%
	37%

	-22.0%
	34%
	34%

	-23.0%
	31%
	31%

	-24.0%
	28%
	28%

	-25.0%
	25%
	25%

	-26.0%
	22%
	22%

	-27.0%
	19%
	19%

	-28.0%
	16%
	16%

	-29.0%
	13%
	13%

	-30.0%
	10%
	10%

	-31.0%
	7%
	7%

	-32.0%
	4%
	4%

	-33.0%
	1%
	1%

	-33.3%
	0%
	0%

	 >33.3%
	0%
	0%

Example 1: Both Company and XSD Growth Rate Delta Positive, Company Growth Rate Exceeds XSD Growth Rate
Target Grant:  1000 shares
	
				
	 
	30 day average stock  price on 11/16/2015
	30 day average stock price on 11/16/2017
	Positive or Negative Growth Rate (expressed as a percentage)

	Company
	$8.00
	$10.00
	+

	XSD
	$50.00
	$55.00
	+

	Growth Rate Delta
	15%
	 

	Number of Market Stock Units Vested on 11/16/2017
	725 shares
	 

	Based on Schedule A, the Market Stock Unit Payout Percentage corresponds to 145% payout due to a positive Company growth rate.
Therefore, 50% of 1000 shares will vest with a 145% payout.  Payout = (50%)(1000 shares)(145%) = 725 shares will vest on 11/16/2017.

Example 2: Negative Company Growth Rate Delta and Positive XSD Growth Rate Delta
Target Grant:  1000 shares

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	30 day average stock  price on 11/16/2015
	30 day average stock price on 11/16/2017
	Positive or Negative Growth Rate (expressed as a percentage)

	Company
	$8.00
	$7.00
	-13%

	XSD
	$50.00
	$55.00
	+10%

	Growth Rate Delta
	-23%
	 

	Number of Market Stock Units Vested on 11/16/17
	155 shares
	 

	Based on Schedule A, the Market Stock Unit Payout Percentage corresponds to 31% payout due to a negative Company growth rate.
Therefore, 50% of 1000 shares will vest with a 31% payout.  Payout = (50%)(1000 shares)(31%) = 155 shares will vest on 11/16/17.

Example 3: Negative Company Growth Rate Delta and Negative XSD Growth Rate Delta, but Company Growth Rate Delta Exceeds XSD Growth Rate Delta
Target Grant:  1000 shares
	
				
	 
	30 day average stock  price on 11/16/2015
	30 day average stock price on 11/16/2017
	Positive or Negative Growth Rate (expressed as a percentage)

	Company
	$8.00
	$7.50
	-6%

	XSD
	$50.00
	$45.00
	-10%

	Growth Rate Delta
	+4%
	 

	Number of Market Stock Units Vested on 11/16/17
	500 shares
	 

	Based on Schedule A, the Market Stock Unit Payout Percentage corresponds to 100% payout due to a negative Company growth rate.
Therefore, 50% of 1000 shares will vest with a 100% payout.  Payout = (50%)(1000 shares)(100%) = 500 shares will vest on 11/16/17.

Example 4: Both Company and XSD Growth Rate Delta Positive, Company Growth Rate Under XSD Growth Rate
Target Grant:  1000 shares

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	30 day average stock  price on 11/16/2015
	30 day average stock price on 11/16/2017
	Positive or Negative Growth Rate (expressed as a percentage)

	Company
	$8.00
	$8.95
	+12%

	XSD
	$50.00
	$60.00
	+20%

	Growth Rate Delta
	-8%
	 

	Number of Market Stock Units Vested on 11/16/17
	380 shares
	 

	Based on Schedule A, the Market Stock Unit Payout Percentage corresponds to 76% payout due to a positive Company growth rate.
Therefore, 50% of 1000 shares will vest with a 76% payout.  Payout = (50%)(1000 shares)(76%) = 380 shares will vest on 11/16/17.

11SEC Exhibit

Exhibit 10.6

HERTZ GLOBAL HOLDINGS, INC. 
SENIOR EXECUTIVE BONUS PLAN
(Effective as of May 18, 2016)
Section 1.Purpose.  The purposes of the Hertz Global Holdings, Inc. Senior Executive Bonus Plan (the “Plan”) are (i) to compensate certain members of senior management of the Company on an individual basis for significant contributions to the Company and its subsidiaries and (ii) to stimulate the efforts of such members by giving them a direct financial interest in the performance of the Company.
Section 2.    Definitions.  The following terms utilized in this Plan shall have the following meanings:
“Board” shall mean the board of directors of the Company.
“Cause” shall mean with respect to any Participant (as determined by the Committee): (i) willful and continued failure to perform substantially the Participant's material duties with the Company (other than any such failure resulting from the Participant's incapacity as a result of physical or mental illness) after a written demand for substantial performance specifying the manner in which the Participant has not performed such duties is delivered to the Participant by the person or entity that supervises or manages the Participant, (ii) engaging in willful and serious misconduct that is injurious to the Company or any of its subsidiaries, (iii) one or more acts of fraud or personal dishonesty resulting in or intended to result in personal enrichment at the expense of the Company or any of its subsidiaries, (iv) substantial abusive use of alcohol, drugs or similar substances that, in the sole judgment of the Company, impairs the Participant's job performance, (v) material violation of any Company policy that results in harm to the Company or any of its subsidiaries or (vi) indictment for or conviction of (or plea of guilty or nolo contendere) to a felony or of any crime (whether or not a felony) involving moral turpitude.  A “termination for Cause” shall include a determination by the Committee following a Participant's termination of employment for any other reason that, prior to such termination of employment, circumstances constituting Cause existed with respect to such Participant.
“Code” shall mean the Internal Revenue Code of 1986 and the regulations and guidance promulgated thereunder, all as amended from time to time.
“Committee” shall mean the committee of the Board designed by the Board to administer the Plan, provided that such committee shall consist solely of two or more "outside directors" within the meaning of Code Section 162(m).
“Company” shall mean Hertz Rental Car Holding Company, Inc. (which shall be known as Hertz Global Holdings, Inc. on and after the Distribution), a Delaware corporation, and any successor thereto.
“Distribution” shall have the meaning prescribed under Section 10.
“EBITDA” shall mean, for a Performance Period, consolidated net income before net interest expense, consolidated  income taxes and consolidated depreciation and amortization; provided, however, that EBITDA shall exclude any or all "extraordinary items" as determined under U.S. generally acceptable accounting principles including, without limitation, the charges or costs associated with restructurings of the Company, discontinued operations, other unusual or non-recurring items, and the cumulative effects of accounting changes, and as identified in the Company's financial statements, notes to the Company's financial statements or management's discussion and analysis of financial condition and results of operations contained in the Company's most recent report filed with the U.S. Securities and Exchange Commission pursuant to the Exchange Act.
“Eligible Executive” means the Company’s Executive Officers, and each officer of the Company or its subsidiaries who are (or who, in the determination of the Committee, may reasonably be expected to be) “covered employees” within the meaning of Code Section 162(m) for such Performance Period.
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules promulgated thereunder.
“Executive Officer” means each person who is an officer of the Company or any subsidiary and who is subject to the reporting requirements under Section 16(a) of the Exchange Act.
“Former Parent” shall mean Hertz Global Holdings, Inc. (which shall be known as Herc Holdings Inc. on and after the Distribution), a Delaware corporation, and any successor thereto
“Participant” shall mean, for a Performance Period, all Eligible Executives unless the Committee, in its sole and absolute discretion, designates that an Eligible Executive shall not be eligible for participation in the Plan for a Performance Period.
“Performance Period” shall mean the fiscal year of the Company, except that the initial Performance Period shall be from the date of the Distribution, or such other date set by the Committee, to the last day of the calendar year containing the date of the Distribution; provided, however, that the Committee may designate that the Performance Period for an Incentive Award be more than one fiscal year (with any such designation by the Committee to be made within the time period permitted under Code Section 162(m)).
“Wrongful Conduct” shall mean any action whereby a Participant:
(a) directly or indirectly, owns any interest in, operates, joins, controls or participates as a partner, director, principal, officer, or agent of, enters into the employment of, acts as a consultant to, or performs any services for any entity which has operations that compete with any business of the Company and its subsidiaries in which the Participant was employed (in any capacity) in any jurisdiction in which such business is engaged, or in which any of the Company and its subsidiaries have documented plans to become engaged of which the Participant has knowledge at the time of the Participant's termination of employment (the “Business”), except where (x) the Participant's interest or association with such entity is unrelated to the Business, (y) such entity's gross revenue from the Business is less than 10% of such entity's total gross revenue, and ( z ) the Participant's interest is directly or indirectly less than two percent (2%) of the Business;
(b) directly or indirectly, solicits for employment, employs or otherwise interferes with the relationship of the Company or any of its affiliates with any natural person throughout the world who is or was employed by or otherwise engaged to perform services for the Company or any of its affiliates at any time during the Participant's employment with the Company or any subsidiary (in the case of any such activity during such time) or during the twelve-month period preceding such solicitation, employment or interference (in the case of any such activity after the termination of the Participant's employment); or
(c) directly or indirectly, discloses or misuses any confidential information of the Company or any of its affiliates.
Section 3.    Term.  Subject to Section 10, the Plan shall be applicable for the initial Performance Period and all future fiscal years of the Company unless amended or terminated by the Company pursuant to Section 7. 
Section 4.    Incentive Award.
4.1    For each Performance Period of the Company, each Participant may be entitled to receive an award payable in cash (“Incentive Award”) in an amount determined by the Committee as provided in this Plan.  With respect to each Performance Period, the Chief Executive Officer of the Company shall be entitled to be paid an Incentive Award equal to 1% of the Company’s EBITDA for such Performance Period of the Company.  With respect to each Performance Period of the Company, each other Participant shall be entitled to be paid an Incentive Award equal to 0.5% of EBITDA for such Performance Period.  Except as otherwise provided in the Plan, a Participant must be employed with the Company on the last day of the Performance Period in order to receive an Incentive Award with respect to such Performance Period.
Notwithstanding anything contained in this Plan to the contrary, the Committee in its sole discretion may reduce any Incentive Award to any Participant to any amount, including zero, prior to the written certification of the Committee of the amount of such Incentive Award.
As a condition to the right of a Participant to receive an Incentive Award, the Committee shall first certify in writing the Company’s EBITDA and that the Incentive Award has been determined in accordance with the provisions of this Plan.
Incentive Awards for any Performance Period shall be determined as soon as practicable after such Performance Period and shall be paid no later than the 15th day of the third month following such Performance Period.  
4.2    Unless otherwise determined by the Committee (whether before or after the commencement of an applicable Performance Period), if a Participant's employment is terminated for any reason prior to the end of a Performance Period, the Participant shall cease being eligible for an Incentive Award in respect to such Performance Period; provided, further, that the Committee shall have no discretion to take such preceding action if the exercise of such action or the ability to exercise such action would cause such Award to fail to qualify as "performance-based" compensation under Code Section 162(m).
4.3    Incentive Awards shall be payable in cash.
4.4    The Company shall have the right and power to deduct from all amounts paid to a Participant (whether under this Plan or otherwise) or to require a Participant to remit to the Company promptly upon notification of the amount due, an amount to satisfy the minimum federal, state or local or foreign taxes or other obligations required by law to be withheld with respect thereto with respect to any Incentive Award under this Plan.
4.5    Participation in this Plan does not exclude Participants from participation in any other benefit or compensation plans or arrangements of the Company, including other bonus or incentive plans.  Nothing in the Plan shall be construed to limit the right of the Company to establish other plans or to pay compensation to its employees, in cash or property, in a manner which is not expressly authorized under the Plan.  
4.6    Unless otherwise determined by the Committee, notwithstanding anything contained in this Plan to the contrary, if, during the period commencing with a Participant's employment with the Company or any subsidiary, and continuing until the first anniversary of the Participant's employment termination, the Participant engages in Wrongful Conduct, then any Incentive Award granted to the Participant hereunder, to the extent they remain unpaid, shall automatically terminate and be canceled effective as of the date on which the Participant first engaged in such Wrongful Conduct and, in such case or in the case of the Participant's termination for Cause, the Participant shall pay to the Company in cash the amounts paid under any Incentive Award hereunder within the twelve-month period ending on the date of the Participant's violation (or such other period as determined by the Committee).    
4.7    Without limiting the generality of Section 4.8, in the event the Company restates any of its financial statements, the Committee may require the Participant pay to the Company in cash all or a portion of the amounts received under any Incentive Award hereunder during the three-year period prior to the date that the Company is required to prepare a financial restatement, to the extent that such amount would not have been paid had the applicable financial results been reported accurately.  Notwithstanding the foregoing, in the event that the Committee determines that the rules and regulations implementing Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act require a longer or different clawback time period than the three-year period contemplated by the prior sentence, such three-year period shall be deemed extended (but not reduced) to the extent necessary to be consistent with such rules and regulations.
4.8    Without limiting the preceding, any Incentive Award hereunder shall be subject to any claw back policy or compensation recovery policy or such other similar policy of the Company in effect from time to time.  The Participant's obligations under Sections 4.6 and 4.7 shall be cumulative of any similar obligations the Participant has under this Plan, any Company policy, standard or code, or any other agreement with the Company or any subsidiary.
Section 5.    Administration and Interpretation.  The Committee shall have authority to prescribe, amend and rescind rules and regulations relating to the Plan, to provide for conditions deemed necessary or advisable to protect the interests of the Company, to interpret the Plan and to make all other determinations necessary or advisable for the administration and interpretation of the Plan and to carry out its provisions and purposes.  Any determination, interpretation or other action made or taken (including any failure to make any determination or interpretation, or take any other action) by the Committee pursuant to the provisions of the Plan, shall, to the greatest extent permitted by law, be within its sole and absolute discretion and shall be final, binding and conclusive for all purposes and upon all persons and shall be given deference in any proceeding with respect thereto.  The Committee may appoint accountants, actuaries, counsel, advisors and other persons that it deems necessary or desirable in connection with the administration of the Plan.  The Committee’s determinations under the Plan need not be uniform and may be made by the Committee selectively among persons who receive, or are eligible to receive, Incentive Awards under the Plan, whether or not such persons are similarly situated.  To the maximum extent permitted by law, no member of the Committee shall be liable for any action taken or decision made in good faith relating to the Plan or any Incentive Award hereunder.
To the maximum extent provided by law and by the Company’s Certificate of Incorporation and/or By-Laws, each person who is or shall have been a member of the Committee or of the Board shall be indemnified and held harmless by the Company against and from any loss, cost, liability or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit or proceeding to which he or she may be made a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid by him or her in settlement thereof, with the Company's approval, or paid by him or her in satisfaction of any judgment in any such action, suit or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf.  The foregoing right of indemnification shall not be exclusive and shall be independent of any other rights of indemnification to which such persons may be entitled under the Company's Certificate of Incorporation or By-laws, by contract, as a matter of law, or otherwise.
Section 6.    Administrative Expenses.  Any expense incurred in the administration of the Plan shall be borne by the Company out of its general funds.
Section 7.    Amendment or Termination.  The Committee of the Company may from time to time amend the Plan in any respect or terminate the Plan in whole or in part, provided that such action will not cause an Incentive Award to become subject to the deduction limitations contained in Code Section 162(m).
Section 8.    No Assignment.  The rights hereunder, including without limitation rights to receive an Incentive Award, shall not be pledged, assigned, transferred, encumbered or hypothecated by an employee of the Company, and during the lifetime of any Participant any payment of an Incentive Award shall be payable only to such Participant.  
Section 9.    The Company.  For purposes of this Plan, the “Company” shall include the successors and assigns of the Company, and this Plan shall be binding on any corporation or other person with which the Company is merged or consolidated.
Section 10.    Effective Date; Stockholder Approval.  The Company has entered into a Separation and Distribution Agreement with Former Parent (the “Separation Agreement”), which provides for a “Distribution” (as defined in the Separation Agreement), by which Former Parent will separate into two separate, publicly traded companies, the Company and Former Parent. Until the Distribution, the Company is a wholly owned subsidiary of Former Parent.  The Plan was approved by Former Parent, as the sole shareholder of the Company, and by the Board, on May 18, 2016.  The Plan shall be effective as of such approval date.  After the Distribution, the Plan (or the material performance goals therein) shall be submitted to the stockholders of the Company for approval at a Company stockholder meeting, which meeting shall meet the timing requirements of Code Section 162(m) in order to ensure that Incentive Awards qualify as “performance-based” compensation under Code Section 162(m).  The ongoing effectiveness of the Plan after such meeting is subject to stockholder approval.
Section 11.    No Right to Employment.  The designation of an officer as a Participant or grant of an Incentive Award shall not be construed as giving a Participant the right to be retained in the employ of the Company or any affiliate or subsidiary.  Nothing in the Plan or any Incentive Award Agreement shall interfere with or limit in any way the right of the Company or any affiliate or subsidiary to terminate any Participant's employment at any time (regardless of whether such termination results in (1) the failure of any Incentive Award to vest; (2) the forfeiture of any Incentive Award; and/or (3) any other adverse effect on the individual’s interests under the Plan). 
Section 12.    No Impact on Benefits.  Except as may otherwise be specifically stated under any employee benefit plan, policy or program, no amount payable in respect of any Incentive Award shall be treated as compensation for purposes of calculating a Participant's right under any such plan, policy or program.  No amount payable in respect of any Incentive Award shall be deemed part of a Participant's regular, recurring compensation for purposes of any termination, indemnity or severance pay laws.
Section 13.    Right to Offset.  Notwithstanding any provisions of the Plan to the contrary, and to the extent permitted by applicable law (including Code Section 409A), the Company may offset any amounts to be paid to a Participant (or, in the event of the Participant’s death, to his beneficiary or estate) under the Plan against any amounts that such Participant may owe to the Company or any affiliate or subsidiary (including, without limitation, amounts owed pursuant to Sections 4.6 and 4.7). 
Section 14.    Furnishing Information.  A Participant will cooperate with the Committee by furnishing any and all information requested by the Committee and take such other actions as may be requested in order to facilitate the administration of the Plan and the payments of benefits hereunder, including but not limited to taking such physical examinations as the Committee may deem necessary.
Section 15.    Governing Law.  The validity, construction and effect of the Plan and any rules and regulations relating to the Plan shall be determined in accordance with the laws of the State of Delaware and applicable federal law, without reference to principles of conflict of laws which would require application of the law of another jurisdiction.
Section 16.    Severability.  In the event that any one or more of the provisions of this Plan shall be or become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not be affected thereby. 
Section 17.    Headings; Gender; Number.  The headings and captions herein are provided for reference and convenience only, shall not be considered part of this Plan, and shall not be employed in the construction of this Plan.  Except when otherwise indicated by the context, words in the masculine gender used in the Plan shall include the feminine gender, the singular shall include the plural, and the plural shall include the singular.
Section 18.    No Trust.  Neither the Plan nor any Incentive Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Participant.  To the extent any Participant acquires a right to receive payments from the Company in respect to any Incentive Award, such right shall be no greater than the right of any unsecured general creditor of the Company.
Section 19.    Code Section 162(m) and Code Section 409A.  It is the intention that Incentive Awards qualify as “performance-based” compensation under Code Section 162(m), and all payments made under the Plan be excluded from the deduction limitations contained in Code Section 162(m).  The Plan shall be construed at all times in favor of its meeting the “performance-based” compensation exception contained in Code Section 162(m).  Accordingly, the Committee shall have no discretion under this Plan (including, without limitation, with respect to adjustments to EBITDA) if the exercise of such discretion or the ability to exercise such discretion would cause such Incentive Award to fail to qualify as "performance-based" compensation under Code Section 162(m).  Therefore, if any Plan provision is found not to be in compliance with the “performance-based” compensation exception contained in Code Section 162(m), that provision shall be deemed amended so that the Plan does so comply to the extent permitted by law and deemed advisable by the Committee.  
To the extent any provision of the Plan or action by the Committee would subject any Participant to liability for interest or additional taxes under Code Section 409A, it will be deemed null and void, to the extent permitted by law and deemed advisable by the Committee.  It is intended that the Plan will be exempt from Code Section 409A, and the Plan shall be interpreted and construed on a basis consistent with such intent.  The Plan may be amended in any respect deemed necessary (including retroactively) by the Committee in order to preserve exemption from Code Section 409A.  The preceding shall not be construed as a guarantee of any particular tax effect for Plan payments.  A Participant is solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on such person in connection with any distributions to such person under the Plan (including any taxes and penalties under Code Section 409A), and the Company (or any affiliate or subsidiary) shall have no obligation to indemnify or otherwise hold a Participant harmless from any or all of such taxes or penalties.

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