Document:

Exhibit 10.1

Employee
Stock Subscription Agreement

This Employee Stock Subscription
Agreement, dated as of June 12, 2006 between Hertz Global Holdings, Inc.,
a Delaware corporation, and the employee whose name appears on the signature page hereof,
is being entered into pursuant to the Hertz Global Holdings, Inc. Stock
Incentive Plan. The meaning of each capitalized term may be found in Section 9.

The Company and the Employee hereby
agree as follows:

Section 1.               Purchase
and Sale of Common Shares

(a)           In General. Subject to all of
the terms of this Agreement, at the Closing the Employee shall purchase, and
the Company shall sell, the aggregate number of Common Shares set forth on the
signature page hereof (the “Shares”), at the purchase price set
forth on the signature page hereof.

(b)           Condition to Sale. Notwithstanding
anything in this Agreement to the contrary, the Company shall have no
obligation to sell any Common Shares to any person who is a resident of a
jurisdiction in which the sale of Common Shares to him would constitute a
violation of the securities, “blue sky” or other laws of such jurisdiction.

Section 2.               The
Closing

(a)           Time and Place. The Company
shall determine the time and place of the closing of the purchase and sale of
the Shares (the “Closing”).

(b)           Delivery by the Employee. At
the Closing, the Employee shall deliver to the Company the aggregate purchase
price for the Shares.

(c)           Delivery by the Company. At
the Closing, the Company shall register the Shares in the name of the Employee.
Certificates relating to the Shares shall be held by the Secretary of the
Company or his designee on behalf of the Employee.

Section 3.               Employee’s
Representations and Warranties

(a)           Access to Information, Etc. The
Employee represents, warrants and covenants as follows:

(i)        the Employee has carefully reviewed the
Offering Memorandum, dated as of March 10, 2006, each of its exhibits,
annexes and other attachments, each document incorporated by

 

 

reference into the Offering Memorandum, and the other
materials furnished to the Employee in connection with the offer and sale of
the Shares pursuant to this Agreement;

(ii)       the Employee has had an adequate
opportunity to consider whether or not to purchase any of the Common Shares
offered to the Employee, and to discuss such purchase with the Employee’s
legal, tax and financial advisors;

(iii)      the Employee understands the terms and
conditions that apply to the Shares and the risks associated with an investment
in the Shares;

(iv)      the Employee has a good understanding of
the English language; and

(v)       the Employee is, and will be at the
Closing, a resident of the jurisdiction indicated as his or her address set
forth on the signature page of this Agreement.

(b)           Ability to Bear Risk. The
Employee represents and warrants as follows:

(i)            the Employee understands that the
rights of first refusal and other transfer restrictions that apply to the
Shares may effectively preclude the transfer of any of the Shares prior to a
Public Offering;

(ii)           the financial situation of the
Employee is such that he or she can afford to bear the economic risk of holding
the Shares for an indefinite period; and

(iii)          the Employee can afford to suffer the
complete loss of his or her investment in the Shares.

(c)           Voluntary Purchase. The
Employee represents and warrants that the Employee is purchasing the Shares
voluntarily.

(d)           No Right to Awards. The
Employee acknowledges and agrees that the sale of the Shares and the grant of
any options that are awarded to the Employee in connection with the purchase of
the Shares (i) are being made on an exceptional basis and are not
intended to be renewed or repeated, (ii) are entirely voluntary on
the part of the Company and its Subsidiaries and (iii) should not
be construed as creating any obligation on

 

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the part of the Company or any of its Subsidiaries to
offer any securities in the future.

(e)           Investment Intention. The
Employee represents and warrants that the Employee is acquiring the Shares
solely for his or her own account for investment and not on behalf of any other
person or with a view to, or for sale in connection with, any distribution of
the Shares.

(f)            Securities Law Matters. The
Employee acknowledges and represents and warrants that the Employee understands
that:

(i)            the Shares have not been registered
under the Securities Act or any state or non-United States securities or “blue
sky” laws;

(ii)           it is not anticipated that there will
be any public market for the Shares;

(iii)          the Shares must be held indefinitely
and the Employee must continue to bear the economic risk of the investment in
the Shares unless the Shares are subsequently registered under applicable
securities and other laws or an exemption from registration is available;

(iv)          the Company is under no obligation to
register the Shares or to make an exemption from registration available; and

(v)           a restrictive legend shall be placed
on any certificates representing the Shares that makes clear that the Shares
are subject to the restrictions on transferability set forth in this Agreement
and a notation shall be made in the appropriate records of the Company or any
transfer agent indicating that the Shares are subject to such restrictions.

(g)           Voting Proxy. By entering into
this Agreement and purchasing the Shares, the Employee hereby irrevocably
grants to and appoints the Principal Investors collectively (to act by
unanimous consent) as such Employee’s proxy and attorney-in-fact (with full
power of substitution), for and in the name, place and stead of such Employee,
to vote or act by unanimous written consent with respect to such Employee’s
Shares. The Employee hereby affirms that the irrevocable proxy set forth in
this Section 3(g) will be valid until the consummation of a Public
Offering and is given to secure the performance of the obligations of such
Employee under this Agreement. The Employee hereby further affirms that the
proxy hereby granted shall be irrevocable and shall be deemed coupled with an
interest

 

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and shall extend for the term of this Agreement, or,
if earlier, until the last date permitted by law. For the avoidance of doubt,
except as expressly contemplated by this Section 3(g), the Employee has
not granted a proxy to any Person to exercise the rights of such Employee under
this Agreement or any other agreement relating to the Shares to which such
Employee is a party.

Section 4.               Restriction
on Transfer of Shares

(a)           In General. Prior to the first
to occur of a Public Offering and December 21, 2009, the Employee shall
not Transfer any of the Shares other than (i) upon the Employee’s
death by will or by the laws of descent and distribution or (ii) with
the Company’s consent. Shares may only be Transferred in a manner that complies
with all applicable securities laws and, if the Company so requests, prior to
any attempted Transfer the Employee shall provide to the Company at the
Employee’s expense such information relating to the compliance of such proposed
Transfer with the terms of this Agreement and applicable securities laws as the
Company shall reasonably request, which may include an opinion in form and
substance reasonably satisfactory to the Company of counsel regarding such
securities law or other matters as the Company shall request (such counsel to
be reasonably satisfactory to the Company).

(b)           No Transfer That Would Result In
Registration Requirements. Prior to a Public Offering, the Shares may not
be Transferred if such Transfer would result in the Company becoming subject to
the reporting requirements of Section 13 or 15(d) of the Exchange Act
(or other similar provision of non-U.S. law) or would increase the risk that
the Company would be subject to such reporting requirements as determined by
the Company in its sole and absolute discretion. Any purported Transfer in
violation of this Section 4(b) shall be void ab initio.

Section 5.              
“Tag-Along” Rights

(a)           Sale Notice. At least 30 days
before any of the Investors (whether acting alone or jointly with one or more
of the other Investors) consummates any sale of more than 50.01% of the Common
Shares collectively owned by the Investors as of the Effective Date to a
Third-Party Buyer, the Company will deliver a written notice (the “Sale
Notice”) to the Employee. The Sale Notice will disclose the material terms
and conditions of the proposed sale or transfer, including the number of Common
Shares that the prospective transferee is willing to purchase, the

 

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proposed purchase price per share and the intended
consummation date of such sale.

(b)           Right to Participate. The
Employee may elect to participate in the sale or other transfer described in
the Sale Notice by giving written notice to the applicable Investors and the
Company within 15 days after the Company has given the related Sale Notice to
the Employee. If the Employee elects to participate, the Employee will be
entitled to sell in the contemplated transaction, at the same price and on the
same terms and conditions as set forth in the Sale Notice, an amount of Shares
equal to the product of (i) the quotient determined by dividing (A) the
percentage of the Company’s then outstanding Common Shares represented by the
Shares then held by the Employee by (B) the aggregate percentage of
the Company’s then outstanding Common Shares represented by the Common Shares
then held by the Investor(s) participating in the sale or other transfer
described in the Sale Notice and all holders of Common Shares electing to
participate in such sale and (ii) the number of Common Shares the
prospective transferee has agreed to purchase in the contemplated transaction.

(c)           Certain Matters Relating to the
Investors. The Company will use its commercially reasonable best efforts to
cause the Investors to conduct any sale that is within the scope of this Section 5
in a manner consistent with this Section 5. If the Company is not able to
do so or fails to give the Sale Notice to the Employee as prescribed in Section 5(a),
the Employee’s sole remedy shall be against the Company.

(d)           Expiration Upon a Public Offering.
The provisions of this Section 5 shall terminate upon the consummation of
a Public Offering.

Section 6.               “Drag-Along”
Rights

(a)           Drag-Along Notice. If any of
the Investors (whether acting alone or jointly with one or more of the other
Investors) intends to sell or otherwise Transfer, or enter into an agreement to
sell or otherwise Transfer, for cash or other consideration, more than 50.01%
of the Common Shares collectively owned by the Investors as of the Effective
Date to a Third-Party Buyer and the applicable Investor(s) elects to
exercise its rights under this Section 6, the Company shall deliver
written notice (a “Drag-Along Notice”) to the Employee, which notice
shall state (i) that the Investor(s) wishes to exercise its
rights under this Section 6 with respect to such sale, (ii) the
name and address of the Third-Party Buyer, (iii) the per share
amount and form of consideration the applicable Investor(s) proposes to

 

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receive for its Common Shares, (iv) the
material terms and conditions of payment of such consideration and all other
material terms and conditions of such sale, and (v) the anticipated
time and place of the closing of the purchase and sale (a “Drag-Along
Closing”).

(b)           Conditions to Drag-Along. Upon
delivery of a Drag-Along Notice, the Employee shall have the obligation to sell
and transfer to the Third-Party Buyer at the Drag-Along Closing the percentage
of the Employee’s Shares equal to the percentage of the Common Shares owned by
the Investor(s) that are to be sold to the Third-Party Buyer (the “Applicable
Percentage”) on the same terms as the applicable Investor(s), but only if
such Investor(s) sells and transfers the Applicable Percentage of the
Investor’s Common Shares to the Third-Party Buyer at the Drag-Along Closing.

(c)           Power of Attorney, Custodian, Etc.
By entering into this Agreement and purchasing the Shares, the Employee hereby
appoints the applicable Investor(s) and any Affiliates of such Investor(s) so
designated by the Investor(s) the Employee’s true and lawful
attorney-in-fact and custodian, with full power of substitution (the “Custodian”),
and authorizes the Custodian to take such actions as the Custodian may deem
necessary or appropriate to effect the sale and transfer of the Applicable
Percentage of the Employee’s Shares to the Third-Party Buyer, upon receipt of
the purchase price therefor at the Drag-Along Closing, free and clear of all
security interests, liens, claims, encumbrances, charges, options, restrictions
on transfer, proxies and voting and other agreements of whatever nature, and to
take such other action as may be necessary or appropriate in connection with
such sale or transfer, including consenting to any amendments, waivers,
modifications or supplements to the terms of the sale (provided that the
applicable Investor also so consents, and, to the extent applicable, sells and
transfers the Applicable Percentage of its Common Shares on the same terms as
so amended, waived, modified or supplemented) and instructs the Secretary of
the Company (or other person holding any certificates for the Shares) to
deliver to the Custodian certificates representing the Applicable Percentage of
the Employee’s Shares, together with all necessary duly-executed stock powers. If
so requested by the applicable Investor(s) or the Company, the Employee
will confirm the preceding sentence in writing in form and substance reasonably
satisfactory to such Investor promptly upon receipt of a Drag-Along Notice (and
in any event no later than 10 days after receipt of the Drag-Along Notice). Promptly
after the Drag-Along Closing, the Custodian shall give notice thereof to the
Employee and shall remit to the Employee the net proceeds of such sale (reduced
by any amount required to be held in escrow

 

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pursuant to the terms of the purchase and sale
agreement and any other expenses).

(d)           The Investors are Third-Party
Beneficiaries; Remedies. The Employee acknowledges and agrees that any of
the Investors that takes action pursuant to this Section 6 is an intended
third-party beneficiary of this Section 6, as if such Investor were a
party to this Agreement directly. Following a breach or a threatened breach by
the Employee of the provisions of this Section 6, the applicable Investor
may obtain an injunction granting it specific performance of the Employee’s
obligations under this Section 6. Whether or not the applicable Investor
obtains such an injunction, and whether or not the transaction with respect to
which the Drag-Along Notice relates is consummated, following such a breach or
threatened breach by the Employee the Company shall have the option to purchase
any or all of the Employee’s Shares at a purchase price per Share equal to the
lesser of the price at which the Employee purchased such Shares from the
Company or the per share consideration payable pursuant to the Drag-Along Offer.
The preceding sentence shall not limit the Company’s or the Investors’ rights
to recover damages (or the amount thereof) from the Employee.

(e)           Expiration on a Public Market.
The provisions of this Section 6 shall terminate and cease to have further
effect upon the establishment of the Public Market, provided that such
termination shall not affect any right to receive or seek damages or purchase
Shares pursuant to Section 6(d).

Section 7.               Rights
of First Refusal

(a)           Notice. At any time prior to a
Public Offering, in addition to the Transfer restrictions set forth in Section 4
and except as otherwise expressly provided in this Agreement, the Employee may
not Transfer any Shares other than pursuant to a Qualified Offer and if the
Employee desires to accept a Qualified Offer, the Employee shall first give at
least 60 days’ prior written notice to the Company and the Initial Investors:

(i)            designating the number of Shares
proposed to be Transferred (the “Offered Shares”);

(ii)           naming the prospective acquiror of
such Shares; and

(iii)          specifying the price at (the “Offer
Price”) and terms upon which (the “Offer Terms”) the Employee
desires to Transfer such Shares.

 

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(b)           Right
of the Company. During the 30-day period following the Company’s
receipt of the Employee’s notice pursuant to Section 7(a) (the “First
Refusal Period”), the Company shall have the right to purchase from the
Employee all or any portion of the Offered Shares, at the Offer Price and on
the Offer Terms, and any such purchase shall be settled at the time and in the
manner specified in Section 7(d) hereof. The Company shall use its
reasonable efforts to act as promptly as practicable following receipt of the
notice from the Employee to determine whether it shall elect to exercise such
right.

(c)           Right of the Initial Investors.
If the Company determines within the First Refusal Period that it does not wish
to exercise its right to purchase all of the Offered Shares, the Initial
Investors shall have the right to purchase all or any portion remaining of the
Offered Shares specified in such notice, at the Offer Price and on the Offer
Terms, and any such purchase shall be settled at the time and in the manner
specified in Section 7(d) hereof. The Initial Investors must
determine whether to exercise such right during the period beginning on the
earlier of (x) the end of the First Refusal Period and (y) the date
of receipt by the Initial Investors of written notice that the Company has
elected not to exercise its rights under Section 7(b) and ending 60
days after the Initial Investor’s receipt of the Employee’s notice pursuant to Section 7(a) (the
“Second Refusal Period”).

(d)           Manner of Exercise. The rights
provided hereunder shall be exercised by written notice to the Employee given
at any time during the applicable period. If such right is exercised, the
Employee may not sell pursuant to the Qualified Offer any of the Shares that
the Company or the Initial Investors have elected to purchase and the Company
or the Initial Investors, as the case may be, shall deliver to the Employee
cash, check or other readily-available funds for the Offer Price, against
delivery of certificates or other instruments representing the Shares so
purchased, appropriately endorsed by the Employee, and free and clear of all
security interests, liens, claims, encumbrances, charges, etc. Notwithstanding
the foregoing, neither the Company nor the Initial Investors, as the case may
be, shall deliver any cash, check or other readily-available funds for the
Offer Price to the Employee prior to the date which is six months and one day
from the date of the Employee’s acquisition of the Shares pursuant to this
Agreement.

(e)           Additional Requirements for Sale.
Subject to Section 4, if neither the Company nor the Initial Investors
shall have exercised its rights under this Section 7, then the Employee
may Transfer the Offered Shares to (but only to) the intended purchaser named
in his notice to the Company

 

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and the Initial Investors at the Offer Price and on
the Offer Terms; provided that:

(i)            such Transfer must be consummated
within 30 days following the expiration of the Second Refusal Period; and

(ii)           the intended purchaser must first
agree in writing in form and substance satisfactory to the Company to make and
be bound by the representations and warranties set forth in Section 3(b), Section 3(e),
Section 3(f), Section 3(g) and to agree to and be bound by the
covenants and other restrictions set forth in this Agreement (including, but
not limited to, Section 4, Section 5, Section 6, Section 7,
Section 8 and Section 10) and such other covenants or restrictions as
the Company shall reasonably request.

Any purported Transfer in violation
of this Section 7 shall be void ab initio.

(f)            Allocation by Initial Investors.
The Employee acknowledges and agrees that the Initial Investors may allocate
their rights to purchase any or all of the Offered Shares within the Second
Refusal Period, as among themselves, in such manner as they, in their sole
discretion, may agree from time to time.

 

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Section 8.               Holdback Agreements. If
the Company files a registration statement under the Securities Act with
respect to an underwritten public offering of any shares of its capital stock,
the Employee shall not effect any public sale (including a sale under Rule 144
under the Securities Act or other similar provision of applicable law) or
distribution of any Common Shares, other than as part of such underwritten
public offering, during the 20 days prior to and the 180 days after the
effective date of such registration statement (or such other period as may be
generally applicable to or agreed by the Company’s senior-most executives) . If
the Company files a prospectus in connection with a takedown from a shelf
registration statement, the Employee shall not effect any public sale
(including a sale under Rule 144 under the Securities Act or other similar
provision of applicable law) or distribution of any Common Shares, other than
as part of such offering, for 20 days prior to and 90 days after the date the
prospectus supplement is filed with the Securities and Exchange Commission (or
such other period as may be generally applicable to or agreed by the Company’s
senior-most executives).

Section 9.               Certain Definitions

(a)           As used in this Agreement, the
following terms shall have the meanings set forth below:

“Affiliate”
has the meaning given in the Stock Incentive Plan.

“Agreement”
means this Employee Stock Subscription Agreement, as amended from time to time
in accordance with the terms hereof.

“Applicable
Percentage” has the meaning given in Section 6(b).

“Board”
has the meaning given in the Stock Incentive Plan.

“Carlyle
Investors” means, collectively, (i) Carlyle Partners IV, L.P., (ii) CEP
II Participations S.àr.l., (iii) CP IV Co investment, L.P., and (iv) CEP
II U.S. Investments, L.P.

“Cause”
has the meaning given in the Stock Incentive Plan.

“CDR
Investors” means, collectively, (i) Clayton, Dubilier & Rice
Fund VII, L.P., (ii) CDR CCMG Co-Investor L.P., and (iii) CD&R
Parallel Fund VII, L.P.

“Closing”
has the meaning given in Section 2(a).

 

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“Common
Shares” means the common stock, par value U.S. $.01 per share, of the
Company.

“Company”
means Hertz Global Holdings, Inc., a Delaware corporation, provided
that for purposes of determining the status of Employee’s employment with the “Company,”
such term shall include the Company and its Subsidiaries.

“Custodian”
has the meaning given in Section 6(c).

“Disability”
has the meaning given in the Stock Incentive Plan.

“Drag-Along
Closing” has the meaning given in Section 6(a).

“Drag-Along
Notice” has the meaning given in Section 6(a).

“Effective
Date” has the meaning given in the Stock Incentive Plan.

“Employee”
means the purchaser of the Shares whose name is set forth on the signature page of
this Agreement; provided that following such person’s death, the “Employee”
shall be deemed to include such person’s beneficiary or estate and following
such person’s Disability, the “Employee” shall be deemed to include any legal
representative of such person.

“Exchange Act” means the United States Securities Exchange Act of
1934, as amended, or any successor statute, and the rules and regulations
thereunder that are in effect at the time, and any reference to a particular
section thereof shall include a reference to the corresponding section, if
any, of any such successor statute, and the rules and regulations thereunder.

“Fair Market Value” has the meaning given in the Stock Incentive
Plan.

“First
Refusal Period” has the meaning given in 
Section 7(b).

“Initial
Investors” means, collectively, the Carlyle Investors, the CDR Investors
and the Merrill Lynch Investors.

“Investors”  has the meaning given in the Stock Incentive
Plan.

“Merrill
Lynch Investors” means, collectively, (i) ML Global Private
Equity Fund, L.P., (ii) Merrill Lynch Ventures L.P. 2001, (iii) CMC-Hertz
Partners, L.P., and (iv) ML Hertz Co-Investor, L.P.

 

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“Offer
Price” has the meaning given in Section 7(a).

“Offer
Terms” has the meaning given in Section 7(a).

“Offered
Shares” has the meaning given in Section 7(a).

“Option”
has the meaning given in the Stock Incentive Plan.

“Person”
means any natural person, firm, partnership, limited liability company,
association, corporation, company, trust, business trust, governmental
authority or other entity.

“Principal
Investors” means, collectively, (i) Carlyle Partners IV, L.P., (ii) Clayton,
Dubilier & Rice Fund VII, L.P., and (iii) ML Global Private
Equity Fund, L.P.

“Public
Market” shall be deemed to have been established at such time as 30% of the
Common Shares (on a fully diluted basis) has been sold to the public pursuant
to an effective registration statement under the Securities Act, pursuant to Rule 144
or pursuant to a public offering outside the United States.

“Public
Offering” has the meaning given in the Stock Incentive Plan.

“Qualified
Offer” means an offer to purchase Shares from a single purchaser and which
must be in writing and for cash or other immediately-available funds, be
irrevocable by its terms for at least 60 days and be a bona fide offer as
determined in good faith by the Board or the Compensation Committee thereof.

“Retirement”
means the Employee’s retirement from active service on or after the Employee
reaches normal retirement age.

“Rule 144”
means Rule 144 under the Securities Act (or any successor provision
thereto).

“Sale
Notice” has the meaning given in Section 5(a).

“Second
Refusal Period” has the meaning given in Section 7(c).

“Securities
Act” means the United States Securities Act of 1933, as amended, or any
successor statute, and the rules and regulations thereunder that are in
effect at the time and any reference to a particular section thereof

 

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shall include a reference to the corresponding section, if any, of any
such successor statute, and the rules and regulations thereunder.

“Shares”
has the meaning given in Section 1(a), and for purposes of Section 4,
Section 5, Section 6, Section 7, and Section 8 it also
includes Common Shares delivered as dividends in respect of the Shares.

“Stockholders
Agreement” means the Hertz Global Holdings, Inc. Stockholders
Agreement, dated as of December 21, 2005.

“Stock
Incentive Plan” means the Hertz Global Holdings, Inc. Stock Incentive
Plan adopted by the Board, as amended from time to time.

“Subsidiary”
has the meaning given in the Stock Incentive Plan.

“Third-Party
Buyer” means any Person other than (i) the Company or any of
its Subsidiaries, (ii) any employee benefit plan of the Company or
any of its Subsidiaries, (iii) the Initial Investors, (iv) any
Affiliates of any of the foregoing, or (v) any investment fund or
vehicle, other than the Initial Investors, managed, sponsored or advised by Clayton,
Dubilier & Rice, Inc., TC Group L.L.C. (which operates under the
trade name The Carlyle Group) or Merrill Lynch Global Partners, Inc.

“Transfer”
means any sale, assignment, transfer, pledge, encumbrance, or other direct or
indirect disposition (including a hedge or other derivative transaction).

“Unforeseen
Personal Hardship” means financial hardship arising from (i) extraordinary
medical expenses or other expenses directly related to illness or disability of
the Employee, a member of the Employee’s immediate family or one of the
Employee’s parents or (ii) payments necessary or required to
prevent the eviction of the Employee from the Employee’s principal residence or
foreclosure on the mortgage on that residence.

Section 10.             Miscellaneous

(a)           Authorization to Share Personal
Data. The Employee authorizes any Affiliate of the Company that employs the
Employee or that otherwise has or lawfully obtains personal data relating to
the Employee to divulge or transfer such personal data to the Company or a to a
third party, in each case in any jurisdiction, if and to the extent appropriate
in connection with this Agreement or the administration of the Stock Incentive
Plan.

 

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(b)           Unforeseen
Personal Hardship. If the Employee, prior to a Public Offering and still in
the employment of the Company, experiences Unforeseen Personal Hardship, the
Board will carefully consider any request by the Employee that the Company
repurchase the Employee’s Shares at the Fair Market Value of the Shares on the
date of such purchase, but the Company shall have no obligation to do so.

(c)           Notices. All notices and other
communications required or permitted to be given under this Agreement shall be
in writing and shall be deemed to have been given if delivered personally or
sent by certified or express mail, return receipt requested, postage prepaid,
or by any recognized international equivalent of such delivery, to the Company,
any of the Investors or the Employee, as the case may be, at the following
addresses or to such other address as the Company, the Investors or the
Employee, as the case may be, shall specify by notice to the others:

(i)            if to the Company, to it at:

Hertz Global Holdings, Inc.

c/o The Hertz Corporation

225 Brae Boulevard

Park Ridge, New Jersey  07656

Attention: General Counsel

Fax: (201) 594-3122

with copies (which shall not constitute notice) to the Persons listed in
clause (iv) below).

(ii)           if to the Employee, to the Employee
at his or her most recent address as shown on the books and records of the
Company or Subsidiary employing the Employee.

(iii)          if to any Investor, to the Persons
listed in clause (iv) below:

(iv)          Copies of any notice or other
communication given under this Agreement shall also be given to:

 

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The Carlyle Group

1001 Pennsylvania Avenue, NW

Suite 220 South

Washington DC 20004-2505

Attention:  Mr. Gregory S. Ledford

Fax:  (202) 347-1818

and

Clayton, Dubilier & Rice, Inc.

375 Park Avenue, 18th Floor

New York, New York 10152

Attention:  David Wasserman

Fax: (212) 893-7061

and

Merrill Lynch Global Private Equity

4 World Financial Center, 23rd Floor

New York, NY 10080

Attention:  Mr. George A. Bitar &
                   Mr. Robert
F. End

Fax:  (212) 449-1119

and

Debevoise & Plimpton LLP

919 Third Avenue 

New York, New York 10022

Attention:  John M. Allen

Fax:  (212) 909-6836

All such notices and communications shall be deemed to have been received
on the date of delivery if delivered personally or on the third business day
after the mailing thereof.

(d)           Binding Effect; Benefits. This
Agreement shall be binding upon and inure to the benefit of the parties to this
Agreement and their respective successors and assigns. Except as otherwise
provided herein with respect to the Investors, nothing in this Agreement,
express or implied, is intended or shall be construed to give any person other
than the parties to this Agreement or their respective successors or assigns
any legal or equitable

 

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right, remedy or claim under or in respect of any
agreement or any provision contained herein.

(e)           Waiver; Amendment.

(i)            Waiver. Any party hereto may
by written notice to the other parties (A) extend the time for the
performance of any of the obligations or other actions of the other parties
under this Agreement, (B) waive compliance with any of the
conditions or covenants of the other parties contained in this Agreement, and (C) waive
or modify performance of any of the obligations of the other parties under this
Agreement, provided that any waiver of the provisions of Section 4
through and including Section 8 or this Section 10(e) must be
consented to in writing by the Principal Investors. Except as provided in the
preceding sentence, no action taken pursuant to this Agreement, including, but
not limited to, any investigation by or on behalf of any party, shall be deemed
to constitute a waiver by the party taking such action of compliance with any
representations, warranties, covenants or agreements contained herein. The
waiver by any party hereto of a breach of any provision of this Agreement shall
not operate or be construed as a waiver of any preceding or succeeding breach
and no failure by a party to exercise any right or privilege hereunder shall be
deemed a waiver of such party’s rights or privileges hereunder or shall be
deemed a waiver of such party’s rights to exercise the same at any subsequent
time or times hereunder.

(ii)           Amendment. This Agreement may
be amended, modified or supplemented only by a written instrument executed by
the Employee and the Company, provided that the provisions of Section 4
through Section 8 and this Section 10 may be amended by vote of a
majority (by number of Common Shares) of the Employees who hold Common Shares
purchased pursuant to a stock subscription agreement having comparable
provisions; provided, further, that any amendment adversely affecting
the rights of the Investors hereunder must be consented to by the Principal
Investors.

(f)            Assignability. Neither this
Agreement nor any right, remedy, obligation or liability arising hereunder or
by reason hereof shall be assignable by the Company or the Employee without the
prior written consent of the other parties, provided that any Investor
may assign from time to time all or any portion of its rights under this
Agreement, to one or more persons or other entities designated by it.

 

 16
 

 

(g)           Applicable
Law. This Agreement shall be governed by and construed in accordance with
the law of the State of Delaware regardless of the application of rules of
conflict of law that would apply the laws of any other jurisdiction.

(h)           Waiver of Jury Trial. Each
party hereby waives, to the fullest extent permitted by applicable law, any
right it may have to a trial by jury in respect of any suit, action or
proceeding arising out of this Agreement or any transaction contemplated hereby.
Each party (i) certifies that no representative, agent or attorney
of any other party has represented, expressly or otherwise, that such other
party would not, in the event of litigation, seek to enforce the foregoing
waiver and (ii) acknowledges that it and the other parties have
been induced to enter into the Agreement by, among other things, the mutual
waivers and certifications in this Section 10(h).

(i)            Section and Other Headings,
etc. The section and other headings contained in this Agreement are for
reference purposes only and shall not affect the meaning or interpretation of
this Agreement.

(j)            Counterparts. This Agreement
may be executed in any number of counterparts, each of which shall be deemed to
be an original and all of which together shall constitute one and the same
instrument.

 

 17
 

 

IN WITNESS WHEREOF, the
Company and the Employee have executed this Agreement as of the date first
above written.

 

	
  

  	
  HERTZ GLOBAL HOLDINGS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Irwin M. Pollack

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Irwin M. Pollack

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President,

  
	
   

  	
   

  	
  Employee Relations,

  
	
   

  	
   

  	
  The Hertz Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE EMPLOYEE:

  
	
   

  	
   

  	
   

  
	
   

  	
  Craig R. Koch

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Elizabeth E.
  Corcoran

  	
   

  
	
   

  	
   

  	
  as Attorney-in-Fact

  
	
   

  	
   

  	
  Name: Elizabeth E.
  Corcoran

  
	
   

  	
   

  	
   

  
	
   

  	
  Address of the
  Employee:

  
	
   

  	
   

  
	
   

  	
  14 Stewart Court

  
	
   

  	
  Old Tappan, NJ 07675

  
						

 

	
  Total Number of

  	
   

  	
   

  
	
  Common Shares

  	
   

  	
   

  
	
  to be Purchased:

  	
   

  	
  50,000

  
	
   

  	
   

  	
   

  
	
  Per Share Price

  	
   

  	
  $10.00

  
	
   

  	
   

  	
   

  
	
  Total Purchase

  	
   

  	
   

  
	
  Price:

  	
   

  	
  $500,000

  

 

 

 18Exhibit 10.2

Employee Stock Option Agreement

This Employee Stock Option
Agreement, dated as of June 12, 2006, between Hertz Global Holdings, Inc.,
a Delaware corporation, and the Employee whose name appears on the signature page hereof,
is being entered into pursuant to the Hertz Global Holdings, Inc. Stock
Incentive Plan. The meaning of capitalized terms may be found in Section 7.

The Company and the Employee hereby
agree as follows:

Section 1.              Grant of Options

(a)   Confirmation of Grant. The Company hereby evidences
and confirms, effective as of the date hereof, its grant to the Employee of
Options to purchase the number of Common Shares specified on the signature page hereof.
The Options are not intended to be incentive stock options under the Code. This
Agreement is entered into pursuant to, and the terms of the Options are subject
to, the terms of the Plan. If there is any inconsistency between this Agreement
and the terms of the Plan, the terms of the Plan shall govern.

(b)   Option Price. Each share covered by an Option shall
have the Option Price specified on the signature page hereof.

Section 2.              Vesting and Exercisability

(a)   Except as otherwise provided in Section 6(a) or Section 2(b) of
this Agreement, the Options shall become vested in three equal annual
installments on each of the first through third anniversaries of the Grant
Date; provided that if the Employee’s employment with the Company is
terminated in a Special Termination (i.e., by reason of the Employee’s death or
Disability), any unvested Options held by the Employee shall immediately vest
as of the effective date of such Special Termination.

(b)   Discretionary Acceleration. The Board, in its sole
discretion, may accelerate the vesting or exercisability of all or a portion of
the Options, at any time and from time to time.

(c)   Exercise. Once vested in accordance with the
provisions of this Agreement, the Options may be exercised at any time and from
time to time prior to the date such Options terminate pursuant to Section 3.
Options may only be exercised with respect to 

 

 

whole Common Shares and must be exercised in
accordance with Section 4.

Section 3.              Termination of Options

(a)   Normal
Termination Date. Unless earlier terminated pursuant to Section 3(b) or
Section 6, the Options shall terminate on the second anniversary of the
date on which such Options vest (the “Normal Termination Date”), if not
exercised prior to such date.

(b)   Early
Termination. If the Employee’s employment with the Company terminates for
any reason other than for Cause or a Special Termination, any Options held by
the Employee that have not vested before the effective date of such termination
of employment (determined without regard to any statutory or deemed or express
contractual notice period) or that do not become vested on such date in
accordance with Section 2 shall remain outstanding and continue to vest in
accordance with the terms of Section 2 of this Agreement. If the Employee’s
employment is terminated for Cause, all Options (whether or not then vested or
exercisable) shall automatically terminate immediately upon such termination. If
the Employee’s employment with the Company terminates by reason of a Special
Termination, all unvested Options shall immediately vest upon such Special
Termination. All vested Options held by the Employee following the effective
date of a Special Termination shall remain exercisable until the Normal
Termination Date, and if not exercised within such period the Options shall
automatically terminate upon the expiration of such period.

Section 4.              Manner of Exercise

(a)   General.
Subject to such reasonable administrative regulations as the Board may adopt
from time to time, the Employee may exercise vested Options by giving at least
15 business days prior written notice to the Secretary of the Company
specifying the proposed date on which the Employee desires to exercise a vested
Option (the “Exercise Date”), the number of whole shares with respect to
which the Options are being exercised (the “Exercise Shares”) and the
aggregate Option Price for such Exercise Shares (the “Exercise Price”); provided
that following a Public Offering notice may be given within such lesser period
as the Board may permit. On or before any Exercise Date that occurs prior to a
Public Offering, the Company and the Employee shall enter into an 

 2
 

 

 

Employee Stock
Subscription Agreement that contains transfer and other restrictions on the
Exercise Shares, a form of which has been provided to the Employee. Unless
otherwise determined by the Board, and subject to such other terms,
representations and warranties as may be provided for in the Employee Stock
Subscription Agreement, (i) on or before the Exercise Date the
Employee shall deliver to the Company full payment for the Exercise Shares in
United States dollars in cash, or cash equivalents satisfactory to the Company,
in an amount equal to the Exercise Price plus any required withholding
taxes or other similar taxes, charges or fees and (ii) the Company
shall register the issuance of the Exercise Shares on its records (or direct
such issuance to be registered by the Company’s transfer agent). The Company
may require the Employee to furnish or execute such other documents as the
Company shall reasonably deem necessary (i) to evidence such
exercise, (ii) to determine whether registration is then required under
the Securities Act or other applicable law or (iii) to comply with
or satisfy the requirements of the Securities Act, applicable state or non-U.S.
securities laws or any other law.

(b)                   Restrictions
on Exercise. Notwithstanding any other provision of this Agreement, the
Options may not be exercised in whole or in part, and no certificates
representing Exercise Shares shall be delivered, (i) (A) unless
all requisite approvals and consents of any governmental authority of any kind
shall have been secured, (B) unless the purchase of the Exercise
Shares shall be exempt from registration under applicable U.S. federal and
state securities laws, and applicable non-U.S. securities laws, or the Exercise
Shares shall have been registered under such laws, and (C) unless
all applicable U.S. federal, state and local and non-U.S. tax withholding
requirements shall have been satisfied or (ii) if such exercise
would result in a violation of the terms or provisions of or a default or an
event of default under, any of the Financing Agreements. The Company shall use
its commercially reasonable efforts to obtain any consents or approvals
referred to in clause (i) (A) of the preceding sentence, but shall
otherwise have no obligations to take any steps to prevent or remove any
impediment to exercise described in such sentence.

Section 5.              Employee’s Representations;
Investment Intention. The Employee represents and warrants that the Options
have been, and any Exercise Shares will be, acquired by the Employee solely for
the Employee’s own account for investment and not with a view to or for sale in
connection with any 

 3
 

 

distribution thereof. The
Employee represents and warrants that the Employee understands that none of the
Exercise Shares may be transferred, sold, pledged, hypothecated or otherwise
disposed of unless the provisions of the related Employee Stock Subscription Agreement shall have been
complied with or have expired.

Section 6.              Change in Control

(a)   Vesting and Cancellation. Except as otherwise provided
in this Section 6(a), in the event of a Change in Control, all
then-outstanding Options (whether vested or unvested) shall be canceled in
exchange for a payment having a value equal to the excess, if any, of (i) the
product of the Change in Control Price multiplied by the aggregate number of
shares covered by all such Options immediately prior to the Change in Control
over (ii) the aggregate Option Price for all such shares, to be paid as
soon as reasonably practicable, but in no event later than 30 days following
the Change in Control.

(b)   Alternative Award. Notwithstanding Section 6(a),
no cancellation, termination, or settlement or other payment shall occur with
respect to any Option if the Board reasonably determines prior to the Change in
Control that the Employee shall receive an Alternative Award meeting the
requirements of the Plan.

(c)   Limitation of Benefits. If, whether as a result of
accelerated vesting, the grant of an Alternative Award or otherwise, the
Employee would receive any payment, deemed payment or other benefit as a result
of the operation of Section 6(a) or Section 6(b) that,
together with any other payment, deemed payment or other benefit the Employee
may receive under any other plan, program, policy or arrangement, would
constitute an “excess parachute payment” under section 280G of the Code, then,
notwithstanding anything in this Section 6 to the contrary, the payments,
deemed payments or other benefits such Employee would otherwise receive under Section 6(a) or
Section 6(b) shall be reduced to the extent necessary to eliminate
any such excess parachute payment and such Employee shall have no further
rights or claims with respect thereto. If the preceding sentence would result
in a reduction of the payments, deemed payments or other benefits the Employee
would otherwise receive on an after-tax basis by more than 5%, the Company will
use its commercially reasonable best efforts to seek the approval of the
Company’s shareholders in the manner provided for in section 

 4
 

 

 

280G(b)(5) of
the Code and the regulations thereunder with respect to such reduced payments
or other benefits (if the Company is eligible to do so), so that such payments
would not be treated as “parachute payments” for these purposes (and therefore
would cease to be subject to reduction pursuant to this Section 6(c)).

Section 7.              Certain Definitions. As
used in this Agreement, capitalized terms that are not defined herein have the
respective meaning given in the Plan, and the following additional terms shall
have the following meanings:

“Agreement” means this
Employee Stock Option Agreement, as amended from time to time in accordance
with the terms hereof.

“Code” means the United
States Internal Revenue Code of 1986, as amended, and any successor thereto.

“Company” means Hertz Global
Holdings, Inc., provided that for purposes of determining the
status of Employee’s employment with the “Company,” such term shall include the
Company and its Subsidiaries.

“Employee” means the grantee
of the Options, whose name is set forth on the signature page of this
Agreement; provided that for purposes of Section 4 and Section 8,
following such person’s death “Employee” shall be deemed to include such person’s
beneficiary or estate and following such Person’s Disability, “Employee” shall
be deemed to include such person’s legal representative.

“Employee Stock Subscription
Agreement” means a “Stock Subscription Agreement” as defined in the Plan.

“Exercise Date” has the
meaning given in Section 4(a).

“Exercise Price” has the
meaning given in Section 4(a).

“Exercise Shares” has the
meaning given in Section 4(a).

“Grant Date” means the date
hereof, which is the date on which the Options are granted to the Employee.

“Normal Termination Date”
has the meaning given in Section 3(a).

“Option” means the right
granted to the Employee hereunder to purchase one Common Share for a purchase
price equal to the Option Price subject to the terms of this Agreement and the
Plan.

 5
 

 

 

“Option Price” means, with
respect to each Common Share covered by an Option, the purchase price specified
in Section 1(b) for which the Employee may purchase such Common Share
upon exercise of an Option.

“Plan” means the Hertz
Global Holdings, Inc. Stock Incentive Plan.

“Securities Act” means the
United States Securities Act of 1933, as amended, or any successor statute, and
the rules and regulations thereunder that are in effect at the time, and
any reference to a particular section thereof shall include a reference to the
corresponding section, if any, of such successor statute, and the rules and
regulations.

“Special Termination” means
a termination of the Employee’s employment as a result of his or her death or
Disability.

Section 8.              Miscellaneous.

(a)   Withholding.
The Company or one of its Subsidiaries may require the Employee to remit to the
Company an amount in cash sufficient to satisfy any applicable U.S. federal,
state and local and non-U.S. tax withholding or other similar charges or fees
that may arise in connection with the grant, vesting, exercise or purchase of
the Options.

(b)   Authorization
to Share Personal Data. The Employee authorizes any Affiliate of the
Company that employs the Employee or that otherwise has or lawfully obtains
personal data relating to the Employee to divulge or transfer such personal
data to the Company or to a third party, in each case in any jurisdiction, if
and to the extent appropriate in connection with this Agreement or the
administration of the Plan.

(c)   No
Rights as Stockholder; No Voting Rights. The Employee shall have no rights
as a stockholder of the Company with respect to any Shares covered by the
Options until the exercise of the Options and delivery of the Shares. No
adjustment shall be made for dividends or other rights for which the record
date is prior to the delivery of the Shares. Any Shares delivered in respect of
the Options shall be subject to the Employee Stock Subscription Agreement and
the Employee shall have no voting rights with respect to such Shares until such
time as specified in the Employee Stock Subscription Agreement.

 6
 

 

 

(d)   No Right to Continued Employment. Nothing in this
Agreement shall be deemed to confer on the Employee any right to continue in
the employ of the Company or any Subsidiary, or to interfere with or limit in
any way the right of the Company or any Subsidiary to terminate such employment
at any time.

(e)   Non-Transferability of Options. The Options may be
exercised only by the Employee. The Options are not assignable or transferable,
in whole or in part, and they may not, directly or indirectly, be offered, transferred,
sold, pledged, assigned, alienated, hypothecated or otherwise disposed of or
encumbered (including, but not limited to, by gift, operation of law or
otherwise) other than by will or by the laws of descent and distribution to the
estate of the Employee upon the Employee’s death or with the Company’s consent.

(f)   Notices.
All notices and other communications required or permitted to be given under
this Agreement shall be in writing and shall be deemed to have been given if
delivered personally or sent by certified or express mail, return receipt
requested, postage prepaid, or by any recognized international equivalent of
such delivery, to the Company or the Employee, as the case may be, at the
following addresses or to such other address as the Company or the Employee, as
the case may be, shall specify by notice to the other:

(i)   if
to the Company, to it at:

Hertz Global Holdings, Inc.

c/o The Hertz Corporation

225 Brae Boulevard

Park Ridge, New Jersey  07656

Attention: General Counsel

Fax:
(201) 594-3122

(ii)   if to the Employee, to the Employee at his or her most
recent address as shown on the books and records of the Company or Subsidiary
employing the Employee; and

copies of any
notice or other communication given under this Agreement shall also be given
to:

 7
 

 

 

The Carlyle Group

1001 Pennsylvania Avenue, NW

Suite 220 South

Washington DC 20004-2505

Attention:  Mr. Gregory S. Ledford

Fax:  (202) 347-1818

and

Clayton, Dubilier & Rice, Inc. 

375 Park Avenue, 18th Floor

New York, New York

Attention: David Wasserman 

Fax: (212) 407-5252

and

Merrill Lynch Global Private Equity

4 World Financial Center, 23rd Floor

New York, NY 10080

Attention:  Mr. George A. Bitar &

                  Mr. Robert
F. End

Fax:  (212) 449-1119

and

Debevoise & Plimpton LLP

919 Third Avenue 

New York, New York 10022

Attention:  John M. Allen

Fax:  (212) 909-6836

All such
notices and communications shall be deemed to have been received on the date of
delivery if delivered personally or on the third business day after the mailing
thereof.

(g)   Binding Effect; Benefits. This Agreement shall be
binding upon and inure to the benefit of the parties to this Agreement and
their respective successors and assigns. Nothing in this Agreement, express or
implied, is intended or shall be construed to give any person other than the
parties to this Agreement or their respective successors or assigns any legal
or equitable right, remedy

 8
 

 

or claim under
or in respect of any agreement or any provision contained herein.

(h)   Waiver; Amendment.

(i)   Waiver. Any party hereto or beneficiary hereof may by
written notice to the other parties (A) extend the time for the
performance of any of the obligations or other actions of the other parties
under this Agreement, (B) waive compliance with any of the conditions or
covenants of the other parties contained in this Agreement and (C) waive
or modify performance of any of the obligations of the other parties under this
Agreement. Except as provided in the preceding sentence, no action taken
pursuant to this Agreement, including, without limitation, any investigation by
or on behalf of any party or beneficiary, shall be deemed to constitute a
waiver by the party or beneficiary taking such action of compliance with any
representations, warranties, covenants or agreements contained herein. The
waiver by any party hereto or beneficiary hereof of a breach of any provision
of this Agreement shall not operate or be construed as a waiver of any
preceding or succeeding breach and no failure by a party or beneficiary to
exercise any right or privilege hereunder shall be deemed a waiver of such
party’s or beneficiary’s rights or privileges hereunder or shall be deemed a
waiver of such party’s or beneficiary’s rights to exercise the same at any
subsequent time or times hereunder.

(ii)   Amendment. This Agreement may not be amended,
modified or supplemented orally, but only by a written instrument executed by
the Employee and the Company.

(i)   Assignability. Neither this Agreement nor any right,
remedy, obligation or liability arising hereunder or by reason hereof shall be
assignable by the Company or the Employee without the prior written consent of
the other party.

(j)   Applicable Law. This Agreement shall be governed by
and construed in accordance with the law of the State of Delaware regardless of
the application of rules of conflict of law that would apply the laws of
any other jurisdiction.

(k)   Section and
Other Headings, etc. The section and other headings contained in this
Agreement are for reference 

 9
 

 

purposes only
and shall not affect the meaning or interpretation of this Agreement.

(l)   Counterparts. This Agreement may be executed in any
number of counterparts, each of which shall be deemed to be an original and all
of which together shall constitute one and the same instrument.

 10
 

 

 

IN WITNESS WHEREOF, the Company and
the Employee have executed this Agreement as of the date first above written.

	
   

  	
  HERTZ GLOBAL HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Irwin M. Pollack

  
	
   

  	
  Name:

  	
  Irwin M. Pollack

  
	
   

  	
  Title: 

  	
  Senior Vice President,

  
	
   

  	
   

  	
  Employee Relations,

  
	
   

  	
   

  	
  The Hertz Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE EMPLOYEE:

  
	
   

  	
   

  	
   

  
	
   

  	
  Craig R. Koch

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Elizabeth E. Corcoran

  
	
   

  	
   

  	
  as Attorney-in-Fact

  
	
   

  	
   

  	
  Name: Elizabeth E. Corcoran

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address of the Employee:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  14 Stewart Court

  
	
   

  	
   

  	
  Old Tappan, NJ 07675

  

 

	
  Total Number of Shares for
  the Purchase of 

  Which Options have been Granted

  	
   

  	
  Option Price

  	
   

  
	
  10,000 Shares

  	
   

  	
  $10.00

  	
   

  

 

 11

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