Document:

Agreement between Avis Budget Group, Inc. and Thomas Gartland

 Exhibit 10.7(a) 
  

					
	

	 		  	 Mark J. Servodidio
 Executive Vice President
 Human Resources

	April 21, 2008	 		  	  
 973 496 7797 T
 973 496 3322 F
 mark.servodidio@avisbudget.com

 Mr. Thomas M. Gartland 
 507 Green Valley 
 Racine, WI 53406 
 Dear Tom: 
 We are pleased to confirm our offer of
employment with Avis Budget Car Rental LLC as Executive Vice President, Sales & Marketing. This position reports to Robert Salerno, President & Chief Operating Officer. We anticipate your start date to be on or about April 28,
2008. Your salary, paid on a bi-weekly basis, will be $15,384.62, which equates to an annualized salary of $400,000.00. This offer is contingent upon satisfactory employment, education, drug screening, and reference verifications, as well as
compliance with Federal immigration employment law requirements. 
 In addition, you will be awarded a sign-on bonus of $50,000, less applicable
taxes, payable after 60 days of employment. Assuming your continued employment with the Company through such future dates, you will receive two additional payments, each in the amount of $50,000, on the first and second anniversaries of your first
date of employment with the Company in 2009 and 2010, respectively. In the event you voluntarily resign employment or are terminated for cause within one year of your start date or the anniversary of supplemental bonus payments, you agree that you
will not have earned this bonus, and you therefore agree to repay the net amount of the bonus to Avis Budget Car Rental LLC within 30 days of your last day of employment. 
 You are eligible to participate in the Avis Budget Car Rental Management Incentive Plan for 2008 specific to your role, which currently provides for a target payment of 75% of your eligible earnings, as
applicable within the plan guidelines. The plan is based on performance factors as well as Avis Budget’s Earnings Before Interest and Taxes (EBIT) goals. The incentive distribution is typically in the first quarter of the following year. Your
eligibility under the 2008 Plan will reflect 12 months of participation. 
 In addition, you are eligible to participate in the Avis Budget
Group Inc. 2008 Executive Strategic Incentive Plan at a target level of 75% of base salary earned in 2008. Payout is anticipated in the first quarter of 2009, contingent upon Company performance versus metrics as detailed in the Plan document.

 You are also eligible to participate in the Executive Management Car Program and Employee Lease Program. 
 You will be eligible to participate in the Company’s long-term incentive plan (LTIP), at a level consistent with other executives at your level. All
awards are subject to approval by the Compensation Committee of Avis Budget’s Board of Directors and generally take place annually in the first quarter of the year. Generally, awards are based upon, or denominated as, a dollar value and may be
all or partially granted in the form of Restricted Stock Units, Performance-based Restricted 
  

							
	
 

  
	  	 	  	 	  	 
		  	Avis Budget Group, Inc.	  	6 Sylvan Way    	  	Parsippany, New Jersey 07054

 Mr. Thomas M. Gartland 
 April 21, 2008 
 Page Two 
 Stock Units, Cash and Stock-Settled SARs at the Company’s discretion. We anticipate that your initial grant at a value of $500,000 will be approved per the Compensation Committee process. Your grant
is expected to take the form of Performance-based Restricted Stock Units (30% of value) and time-based Restricted Stock Units (70% of value). The number of shares represented by any award is based on the fair market value of Avis Budget Group stock
at time of the Committee’s action. Vesting of performance-based RSUs is determined in accordance with the Plan and generally occurs on the four subsequent anniversaries of the grant date depending upon the Company’s performance over the
prior measurement period. Vesting of time-based RSUs generally occurs on the four subsequent anniversaries of the grant date in 25% portions. 
 You will be provided with relocation assistance under the terms of the Avis Budget Group, Inc. executive level relocation plan. A copy of the Plan is enclosed. To be eligible for full relocation benefits, we anticipate that you will
complete your relocation within six months following your employment date. As part of your relocation package, the Company will provide transitional ‘cost of living’ assistance in the form of additional income included in your bi-weekly
pay checks. In the first 12 months following your employment date, you will receive an aggregate $35,000; in the second 12 months $25,000; and in the third 12 months $15,000. In the event you voluntarily resign employment or are terminated for cause
within one year of your start date or anniversary of each COLA payment, you agree that you will not have earned this payment, and you therefore agree to repay the net amount of the payment to Avis Budget Car Rental LLC within 30 days of your last
day of employment. 
 In the event your position with Avis Budget Car Rental LLC is eliminated or your employment is terminated for any reason
(other than for Cause and other than your resignation), then you shall be entitled to receive a severance payment from Avis Budget Car Rental LLC (or its successor) in an amount equal to 24 months of your then current annual base salary, plus target
bonus, in lieu of any other severance payment under any other severance plan or policy. In addition, the Company will subsidize CORBA medical benefits to ensure you pay the same rate as an active employee for a period of eighteen (24) months,
as well as use of the Company car and AYCO Financial Services. For purposes of the foregoing, “Cause” shall mean: (i) your willful failure to substantially perform your duties as an employee of Avis Budget or any of its subsidiaries
(other than any such failure resulting from incapacity due to physical or mental illness); (ii) any act of fraud, misappropriation, dishonesty, embezzlement or similar conduct against Avis Budget or any of its subsidiaries; (iii) your
conviction of a felony or any crime involving moral turpitude (which conviction, due to the passage of time or otherwise, is not subject to further appeal); or (iv) your gross negligence in the performance of your duties. 
 Health and welfare benefits under Avis Budget will become effective on the first calendar day of the month following your date of hire. You will be eligible
to participate in the 401K plan as soon as administratively possible, following your start date and subject to the terms and conditions of the plan guidelines. Currently, Avis Budget will match your individual contributions of up to 6% of your
annual salary, after one year of service. 
 In addition, you are eligible to elect participation in certain executive level benefits including
financial planning and tax preparation services provided by AYCO Financial Advisory Services, the group Umbrella Liability Plan, and the executive deferred compensation plan. Details of these employee benefits will be provided. 

 Mr. Thomas M. Gartland 
 April 21, 2008 
 Page Three 
 Prior to beginning employment with Avis Budget Car Rental LLC, you will need to take a drug-screening test (enclosed is the vendor’s form for your use), establish your U.S. employment eligibility and
your identity. Examples of proper identification include a valid passport, or a valid driver’s license, and social security card; alternate acceptable documents are stated on the enclosed list. You must bring this identification with you on
your first day of employment. 
 Please indicate your acceptance of this offer by signing the enclosed copy of this letter and returning to me
in the enclosed envelope. In addition, please complete the W-4, I-9 and Avis Budget Car Rental Personal Data Form and fax to me at 973/496-3322 prior to your first day of employment. 
 Per Avis Budget’s standard policy, this letter is not intended nor should it be considered as an employment contract for a definite or indefinite period of time. Employment with Avis Budget Car
Rental LLC is at will, and either you or the Company may terminate employment at any time, with or without cause. In addition, by signing this letter, you acknowledge that this letter sets forth the entire agreement between you and the Company
regarding your employment with the Company, and fully supersedes any prior agreements or understandings, whether written or oral. 
 Tom, we are
excited that you are joining our organization and look forward to having you as part of the Avis Budget Car Rental team. If there is anything further I can do to assist you, please do not hesitate to contact me at (973) 496-7797. 
  

	
	Regards,
	
	/s/ Mark. J. Servodidio
	Mark. J. Servodidio
	Executive Vice President – Human Resources
	
	Understood and accepted:
	
	/s/ Thomas M. Gartland
	Thomas M. Gartland
	
	4/21/08
	Date

 Enclosures 
  

	cc:	F. Robert Salerno 

	 	E. PictroskiAgreement between Avis Budget Group, Inc. and Thomas Gartland

 Exhibit 10.7(b) 
  

					
	

	 		  	Mark J. Servodidio
 Executive Vice President
 Human Resources

			
	December 19, 2008	 		  	973 496 7797 T
 973 496 3322
F
mark.servodidio@avisbudget.com

 Mr. Thomas Gartland 
 Executive Vice President, 
 Sales & Marketing 
 Avis Budget Group 
 6 Sylvan Way 
 Parsippany, NJ 07054 
 Dear Tom: 
 We are pleased to confirm your continued employment with Avis Budget Car Rental, LLC, (“ABCR” or the “Company”), a subsidiary of Avis
Budget Group, as Executive Vice President, Sales & Marketing. To comply with the requirements of Section 409A of the Internal Revenue Code and the regulations thereunder (“Section 409A”), the Company is hereby amending
and restating this letter agreement as set forth herein. 
 As addressed, along with certain other aspects of your employment, in your offer
letter of April 21, 2008, your salary will continue to be paid on a bi-weekly basis at its current rate. You will be eligible to receive a target bonus equal to the percentage of your regular base salary during the performance period that is no
less than your current target bonus percentage, subject to the Company achieving performance goals as described in the Management Incentive Plan for ABG Senior Executive Leadership and you remaining employed with the Company through the payment
date. The bonus distribution is typically in the first quarter of the next year. 
 Per ABCR’s standard policy, this letter is not
intended, nor should it be considered, to be an employment contract for a definite or indefinite period of time. As you know, employment with ABCR is at will, and either you or ABCR may terminate your employment at any time, with or without cause.

 If, however, your employment with ABCR is terminated by ABCR other than: (i) “for cause” (as defined below); (ii) in
connection with your disability which prevents you or is reasonably expected to prevent you from performing services for ABCR for a period of 12 months (your “disability”); or (iii) death, you will receive (1) a lump-sum
severance payment within 15 days following the Release Date (as defined below) equal to 200% of the sum of your base salary plus your target incentive (bonus) and (2) perquisites to include continued access to company car usage, financial
planning and health coverage (Company-subsidized COBRA) for a period of 24 months. For purposes of this agreement ‘company subsidized COBRA’ shall mean that the Company shall subsidize the total cost of COBRA coverage such that the
contributions required of you for health plan participation during the 24 month period shall be substantially equal to the contributions required of active employed executives of ABG. All other programs and perquisites would be governed by their
respective plan documents; provided, however, that the provision of such severance pay is subject to, and contingent upon, your executing within forty-five days following your termination of employment and 
  

							
	
 

  
	  	 	  	 	  	 
		  	Avis Budget Group, Inc.	  	6 Sylvan Way    	  	Parsippany, New Jersey 07054

 Mr. Thomas Gartland 
 December 19, 2008 
 Page Two 
 failing to revoke a separation agreement with ABCR (the date on which the release is no longer revocable, the “Release Date”), in such form determined by ABCR, which requires you, in part, to
release all actual and purported claims against ABCR and its affiliates and which also requires you to agree to: (i) protect and not disclose all confidential and proprietary information of ABCR; (ii) not compete, directly or indirectly,
against ABCR for a period of no longer than one year after your employment separation or for a period of time and within a geographic scope determined by ABCR to be reasonable to protect ABCR’s business interests; and (iii) not solicit any
ABCR employees, consultants, agents or customers during and for one year after your employment separation. 
 In addition, if you experience an
involuntary termination of employment from ABCR other than “for cause,” and other than as a result of your “disability” or death, you will receive a lump sum cash payment within 15 days following the Release Date equal to the
fair market value as of your termination of employment of your stock-based awards which would have vested in accordance with their original vesting schedule by the one-year anniversary of your termination of employment; provided that, to the extent
required to achieve deductibility under Section 162(m) of the Internal Revenue Code of awards that vest based on the achievement of performance criteria, with respect to any awards that vest based on the achievement of performance criteria, for
performance periods beginning after January 1, 2009, payment in respect of these awards shall not occur unless and until ACBR determines that all applicable performance goals have been attained (and you or your beneficiary will receive such
payment at the same time, and on the same basis, as awards granted to other executive officers who are subject to the same performance goals vest). 
 In addition, if you experience a termination of employment from ABCR due to your “disability” or death, you or your beneficiary will receive a lump sum cash payment within 15 days following the Release Date (or, in the event of
your death, within 30 days of your death) equal to the fair market value as of your termination of employment of all of your stock-based awards. 
 “Termination for Cause” shall mean: (i) your willful failure to substantially perform your duties as an employee of the Company or any subsidiary (other than any such failure resulting from your incapacity due to physical or
mental illness); (ii) any act of fraud, misappropriation, dishonesty, embezzlement or similar conduct against the Company or any subsidiary; or (iii) conviction of a felony or any crime involving moral turpitude (which conviction, due to
the passage of time or otherwise, is not subject to further appeal). 
 The payments and benefits described in this letter are intended to
comply with Section 409A and, accordingly, to the maximum extent permitted, the terms of this letter shall be interpreted and administered to be in compliance with Section 409A of the Internal Revenue Code (“Section 409A”).
Notwithstanding anything to the contrary contained herein, to the extent required to avoid accelerated taxation and/or tax penalties under Section 409A, you will not be considered to have terminated employment with ACBR for purposes of the
benefits provided in this letter and no payments shall be due to you on termination of employment hereunder until you are considered to have incurred a “separation from service” from ACBR within the meaning of Section 409A. Each
amount to be paid or benefit to be provided in this letter shall be construed as a separate identified payment for purposes of 

 Mr. Thomas Gartland 
 December 19, 2008 
 Page Three 
 Section 409A. Any payments described in this Agreement that are paid pursuant to a “separation pay plan” as described in Treas. Reg. 1.409A-l(b)(9)(iii) or that are due within the
“short term deferral period” as defined in Section 409A shall not be treated as deferred compensation unless applicable law requires otherwise. Notwithstanding anything contained herein, to the extent required in order to avoid
accelerated taxation and/or tax penalties under Section 409A amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to this letter (or any other plan or agreement of the Company proving you with payments
or benefits upon your separation from service) during the six-month period immediately following your separation from service shall instead be paid or provided on the first business day after the date that is six months following your separation
date (or death, if earlier). 
 The by-laws of the Company provide that officers will be indemnified for their authorized actions on behalf of
our Company to the fullest extent permitted under applicable law. 
 This severance pay as set forth in this letter is in lieu of and supersedes
any other severance benefits otherwise payable to you under any other agreement or severance plan of ABCR or its affiliates. 
  

			
	Regards,	 	
		
	/s/ Mark J.
Servodidio                    	 	12/30/08
	Mark J. Servodidio	 	
	Executive Vice President – Human Resources
		
	Understood and accepted:	 	
		
	/s/ Thomas Gartland	 	 
	Thomas Gartland	 	
		
	12/18/08	 	
	Date

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