Document:

Exhibit
10.2

Employee Stock Option Agreement

This Employee Stock
Option Agreement, dated as of August 15, 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 June 12,
2007, June 12, 2008 and June 12, 2009; 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

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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

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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

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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.

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“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.

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(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:

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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

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

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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

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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.

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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
  Pollack

  	
   

  
	
   

  	
  Name:

  	
  Irwin M. Pollack

  
	
   

  	
  Title:

  	
  Senior Vice
  President,

  
	
   

  	
   

  	
  Employee Relations,

  
	
   

  	
   

  	
  The Hertz Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
  CRAIG KOCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Craig Koch

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  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

  	
   

  
	
  56,000 Shares

  	
   

  	
  $

  	
  7.68

  	
   

  
					

 

 11Exhibit 10.3

Employee Stock Option Agreement

This Employee
Stock Option Agreement, dated as of August 15, 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 June 12, 2007, June 12, 2008 and June 12, 2009, subject to the
continuous employment of the Employee with the Company until January 1, 2007; provided
that if the Employee’s employment with the Company is terminated at any time in
a Special Termination (i.e., by reason of the Employee’s death or Disability),
any 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 a Special Termination) prior to January 1, 2007, any Options held
by the Employee shall terminate immediately upon such termination of employment
(determined without regard to any statutory or deemed or express contractual
notice period).  If the Employee’s
employment with the Company terminates for any reason other than for Cause or a
Special Termination on or after January 1, 2007, any Options held by the
Employee shall continue to vest in accordance with the terms of Section 2 of
this Agreement and shall remain outstanding until the Normal Termination
Date.  If the Employee’s employment with
the Company terminates, at any time, 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, at any time, 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

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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
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.

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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
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,

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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 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).

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

 5
 

 

“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.

“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

 6
 

 

to such Shares until such time as specified in the
Employee Stock Subscription Agreement.

(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

 7
 

 

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

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

 8
 

 

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 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.

 9
 

 

(k)           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.

(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 Pollack

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  Irwin M. Pollack

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Senior Vice President,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Employee Relations,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  The Hertz Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE EMPLOYEE:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CRAIG KOCH

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Craig Koch

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Craig Koch

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  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

  	
   

  
	
  56,000 Shares

  	
   

  	
  $

  	
  7.68

  	
   

  
					

 

 11

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