Document:

Exhibit 10.39

 

HERTZ
GLOBAL HOLDINGS, INC.

 

SEVERANCE
PLAN FOR SENIOR EXECUTIVES

 

ARTICLE
I

BACKGROUND, PURPOSE AND TERM OF PLAN

 

Section 1.01           Purpose
of the Plan.  The purpose of the Plan
is to provide Participants with certain compensation and benefits as set forth
in the Plan in the event the Participant’s employment with the Company or a
Subsidiary is terminated in a Qualifying Termination.  The Plan is not intended to be an “employee
pension benefit plan” or “pension plan” within the meaning of Section 3(2) of
ERISA.  Rather, this Plan is intended to
be a “welfare benefit plan” within the meaning of Section 3(1) of
ERISA and to meet the descriptive requirements of a plan constituting a
“severance pay plan” within the meaning of regulations published by the
Secretary of Labor at Title 29, Code of Federal Regulations, Section 2510.3-2(b).

 

Section 1.02           Term
of the Plan.  The Plan shall
generally be effective as of the Effective Date and shall supersede any prior
plan, program or policy under which the Company or any Subsidiary provided
severance benefits to any Participant prior to the Effective Date of the
Plan.  The Plan shall continue until
terminated pursuant to Article VII of the Plan.

 

ARTICLE
II

DEFINITIONS

 

Section 2.01           “Base
Salary” shall mean, in the case of a Participant, such Participant’s
highest annual base salary in effect at any time within the twelve month period
preceding the Participant’s Termination Date.

 

Section 2.02           “Board”
shall mean the Board of Directors of the Company, or any successor thereto.

 

Section 2.03           “Bonus”
shall mean, in the case of a Participant, the average annual bonus paid (or
awarded, if different) in respect of each of the three prior bonus years
(exclusive of any special or prorated bonuses). 
If a Participant has less than three years of bonus history, “Bonus”
shall mean the average annual bonus of the actual years, provided that
if a Participant has not had an opportunity to earn or be awarded one full
year’s bonus as of his Termination Date, “Bonus” shall mean 100% of the
participant’s target bonus for the year in which the Termination Date occurs.

 

 

Section 2.04           “Cause”
shall mean a Participant’s (i) willful and continued failure to
perform substantially the Participant’s material duties with the Company (other
than any such failure resulting from the Participant’s incapacity due to
physical or mental illness) after a written demand for substantial performance
specifying the manner in which the Participant has not performed such duties is
delivered by the Chief Executive Officer of the Company (the “CEO”) to
the Participant, (ii) engaging in willful and serious misconduct
that is injurious to the Company or any of its Subsidiaries, (iii) act
of fraud or personal dishonesty resulting in or intended to result in personal
enrichment at the expense of the Company or any of its Subsidiaries, (iv) substantial
abusive use of alcohol, drugs or similar substances that, in the sole judgment
of the Company, impairs the Participant’s job performance, (v) material
violation of any Company policy that results in harm to the Company or any of
its Subsidiaries or (vi) indictment for or conviction of a felony
or a crime involving moral turpitude.  A
termination for “Cause,” shall include a determination by the Plan
Administrator following a Participant’s termination of employment for any other
reason that, prior to such termination of employment, circumstances
constituting Cause existed with respect to such Participant.

 

Section 2.05           “COBRA”
shall mean the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended, and the regulations thereunder.

 

Section 2.06           “Code”
shall mean the Internal Revenue Code of 1986, as amended, and the regulations
thereunder.

 

Section 2.07           “Committee”
shall mean the Compensation Committee of the Board or such other committee
appointed by the Board to assist the Company in making determinations required
under the Plan in accordance with its terms. 
The Committee may delegate its authority under the Plan to an individual
or another committee.

 

Section 2.08           “Company”
shall mean Hertz Global Holdings, Inc. and any successor to its business
and/or assets as set forth in Section 10.05 that assumes and agrees to
perform this Plan by operation of law, or otherwise.  Unless it is otherwise clear from the context,
Company shall generally include participating Subsidiaries.

 

Section 2.09           “Effective
Date” shall mean                 
    , 2008.

 

Section 2.10           “ERISA” shall
mean the Employee Retirement Income Security Act of 1974, as amended, and
regulations thereunder.

 

Section 2.11           “Participant”
shall mean any senior executive of the Company designated by the Committee as
eligible to participate in the Plan.

 

Section 2.12           “Performance
Bonus” shall mean such performance bonuses, as applicable, under and in
accordance with the Company’s Annual Incentive Plan, as the

 

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same may be amended from
time to time, and any other performance bonus plan(s) that the Company may
adopt.

 

Section 2.13           “Permanent
Disability” shall mean a termination of employment by the Company or the
Participant based on medical opinion of a physician selected by the Participant
(and provided to the Plan Administrator) that the Participant has been unable
to discharge effectively his material duties with the Company for a period of
180 consecutive calendar days or longer; provided that with respect to
any payments that constitute deferred compensation subject to Section 409A
of the Code, “Disability” shall have the meaning set forth in Section 409A(a)(2)(c) of
the Code.

 

Section 2.14           “Plan”
shall mean this Hertz Global Holdings, Inc. Severance Plan for Senior
Executives as set forth herein, and as the same may from time to time be
amended.

 

Section 2.15           “Plan
Administrator” shall mean the individual(s) appointed by the Committee
to administer the terms of the Plan as set forth herein and if no individual is
appointed by the Committee to serve as the Plan Administrator for the Plan, the
Plan Administrator shall be the Senior Vice President of Human Resources (or
the equivalent).  Notwithstanding the
preceding sentence, in the event the Plan Administrator is entitled to
Severance Benefits under the Plan, the Committee or its delegate shall act as
the Plan Administrator for purposes of administering the terms of the Plan with
respect to the Plan Administrator.  The
Plan Administrator may delegate all or any portion of its authority under the
Plan to any other person(s).

 

Section 2.16           “Qualifying
Termination” shall mean a termination of the Participant’s employment
initiated by the Company or a Subsidiary for any reason other than Cause,
Permanent Disability or death.  For the
avoidance of doubt, a Retirement shall not constitute a Qualifying Termination.

 

Section 2.17           “Release”
shall mean the Separation of Employment and General Release Agreement, which
shall include a written agreement to abide by the agreement to the
confidentiality, non-solicitation, and non-competition provisions in Article V
for the periods provided for herein, in the form attached hereto as Exhibit A;
provided that the Plan Administrator shall have the discretion to modify
the Release if necessary or appropriate under any applicable law to effect a
complete and total release of claims by the Participant as of the Termination
Date.

 

Section 2.18           “Restriction
Period” shall mean the greater of 12 months or the Severance Period, if
applicable.

 

Section 2.19           “Retirement”
shall mean a Participant’s voluntary termination of employment with the Company
under any of the Company’s retirement plans.

 

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Section 2.20           “Separation from
Service Date” shall mean, in the case of a Participant, the date of the
Participant’s “separation from service” within the meaning of Section 409A(a)(2)(i)(A) of
the Code and determined in accordance with the regulations promulgated under Section 409A
of the Code.

 

Section 2.21           “Severance Benefit”
shall mean the benefits that a Participant is eligible to receive pursuant to Article IV
of the Plan, except for those benefits described in Section 4.01 of the
Plan.

 

Section 2.22           “Severance Factor”
and “Severance Period” shall mean, in the case of a Participant, the
amount or period, as the case may be, set forth on Annex A opposite such
Participant’s position.

 

Section 2.23           “Specified Employee”
shall mean a “specified employee” within the meaning of Section 409A(a)(2)(B)(1)
of the Code, as determined in accordance with the uniform methodology and
procedures adopted by the Company and then in effect.

 

Section 2.24           “Subsidiary” shall
mean any corporation in which the Company owns, directly or indirectly, stock
representing 50% or more of the combined voting power of all classes of stock
entitled to vote, and any other business organization, regardless of form, in
which the Company possesses, directly or indirectly, 50% or more of the total
combined equity interests in such organization.

 

Section 2.25           “Termination Date”
shall mean the date as of which the active employment of the Participant by the
Company and its Subsidiaries is severed.

 

ARTICLE
III

ELIGIBILITY FOR BENEFITS

 

Section 3.01           Eligibility.  Each Participant in the Plan who incurs a
Qualifying Termination and who satisfies the conditions of Section 3.02
shall be eligible to receive the Severance Benefits described in the Plan,
except that any such Participant who is a party to an employment agreement or
Change in Control Severance Agreement (or similar agreement) with the Company
pursuant to which such Participant is entitled to severance benefits shall not
be eligible to receive the Severance Benefits described in the Plan.

 

Section 3.02           Conditions.

 

(a)           Eligibility for any
Severance Benefits is expressly conditioned on (i) execution by the
Participant of the Release within 30 days after the Participant’s Termination
Date and (ii) compliance by the Participant with all the material
terms and conditions of such Release.  If
the Participant has not fully 

 

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complied with any of the applicable terms of Article V
and/or the Release, the Plan Administrator may deny unpaid Severance Benefits
or discontinue the payment of the Participant’s Severance Benefit and may
require the Participant, by providing at least 10 days’ prior written notice of
such repayment obligation to the Participant during which period the
Participant may cure such failure to comply (if capable of being cured), and if
not so cured the Participant shall be obligated to repay any portion of the
Severance Benefit already received under the Plan.  If the Plan Administrator notifies a
Participant that repayment of all or any portion of the Severance Benefit
received under the Plan is required, such amounts shall be repaid within thirty
(30) calendar days of the date the written notice is sent.  Any remedy under this subsection (a) shall
be in addition to, and not in place of, any other remedy, including injunctive
relief, that the Company may have.

 

(b)           The
Plan Administrator shall determine a Participant’s eligibility to receive
Severance Benefits.

 

ARTICLE
IV

DETERMINATION OF BENEFITS

 

Section 4.01           Benefits
Upon Any Termination of Employment.  In the event of any termination of
employment, regardless of whether the Participant is eligible for benefits
under this Plan, the Company shall pay or provide to the Participant the
following benefits,  in each case to the
extent vested and payable as provided in each applicable plan:  (a) all earned but unpaid
compensation through the Termination Date and (b) any other
payments or benefits pursuant to any other compensation plans, programs or
employment agreements then in effect.

 

Section 4.02           Severance
Benefits.  The Severance Benefits to
be provided to each Participant who meets the requirements of the Plan (each an
“Eligible Participant”) shall be the following:

 

(a)           a pro rata portion of
the Performance Bonus that would have been payable to the Eligible Participant,
pro rated based on the portion of the year ending on the Termination Date, such
pro rata amount to be paid at the same time as such bonuses are otherwise generally
paid to the Company’s executives and in any event, no later than March 15
of the year following the end of the performance period;

 

(b)           an amount equal to (x) the
sum of the Eligible Participant’s Base Salary plus such Eligible Participant’s
Bonus, multiplied by (y) such Eligible Participant’s Severance
Factor, payable in equal installments over the Eligible Participant’s Severance
Period on the Company’s regular payroll cycles,

 

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commencing with the first payroll cycle ending after
the Release becomes effective;

 

(c)           outplacement services
or executive recruiting services provided by a professional outplacement
provider or executive recruiter at a cost to the Company of not more than 10%
of such Eligible Participant’s Base Salary (not to exceed $25,000) to be
provided within the period ending no later than the end of the year following
the year in which the Termination Date occurs; and

 

(d)           all medical, health and
accident insurance or other similar health care arrangements for the benefit of
such Eligible Participant and his dependants, at the same level and same cost
as in effect immediately prior to the Termination Date, through such Eligible
Participant’s Severance Period (or, if earlier, the date such Eligible
Participant becomes eligible for comparable benefits provided by a subsequent
employer).

 

Notwithstanding
the foregoing provisions of this Section 4.02, if, as of the Separation
from Service Date, the Eligible Participant is a Specified Employee, then,
except to the extent that this Agreement does not provide for a “deferral of
compensation” within the meaning of Section 409A of the Code, the
following shall apply:  (1) No
payments shall be made and no benefits shall be provided to Executive, in each
case, during the period beginning on the Separation from Service Date and
ending on the six-month anniversary of such date or, if earlier, the date of
the Eligible Participant’s death, and  (2) on
the first business day of the first month following the month in which occurs
the six-month anniversary of the Separation from Service Date or, if earlier,
the Eligible Participant’s death, the Company shall make a one-time, lump-sum
cash payment to the Eligible Participant in an amount equal to the sum of (x) the
amounts otherwise payable to the Eligible Participant under this Plan during
the period described in clause (1) above and (y) the amount of
interest on the foregoing at the applicable federal rate for instruments of
less than one year.

 

Section 4.03           Termination for
Cause.  If any Participant’s
employment terminates on account of termination by the Company for Cause, the
Participant shall not be entitled to receive Severance Benefits under this Plan
except as provided under Section 4.01 and shall be entitled only to those
benefits that are legally required to be provided to the Participant.  Notwithstanding any other provision of the
Plan to the contrary, if a Participant has engaged in conduct that constitutes
Cause at any time prior to the Participant’s Termination Date, the Plan
Administrator may by written notice to the Participant determine that any
Severance Benefit payable to the Participant under Section 4.02 of the
Plan shall immediately cease, and that the Participant shall be required to
return any Severance Benefits paid to the Participant prior to such
determination.  The Company may withhold
paying Severance Benefits under the Plan pending resolution of a good faith
inquiry that could lead to a finding resulting in Cause.  If the Company has offset other payments owed
to the Participant under any other plan or

 

6

 

program, it may, in its
sole discretion, waive its repayment right solely with respect to the amount of
the offset so credited.

 

Section 4.04           Reduction of
Severance Benefits.  The Plan
Administrator reserves the right to make deductions in accordance with
applicable law for the stated amount of monies owed to the Company by the
Participant or the value of Company property that the Participant has retained
in his/her possession.  Any payment made
pursuant to the Plan shall be subject to applicable withholding obligations in
an amount sufficient to satisfy U.S. or foreign federal, provincial, state and
local or other applicable withholding tax requirements.

 

Section 4.05           Other Arrangements.  The Severance Benefits under this Plan are
not additive or cumulative to severance or termination benefits that a
Participant might also be entitled to receive under the terms of a written
employment agreement, a severance agreement or any other arrangement with the
Company.  As a condition of participating
in the Plan, each individual must expressly agree that this Plan supersedes all
prior agreements, and sets forth the entire Severance Benefit to which he or
she is entitled to while a Participant in the Plan.  The provisions of this Plan may provide for
payments to the Participant under certain compensation or bonus plans under
circumstances where such plans would not provide for payment thereof.  It is the specific intention of the Company
that the provisions of this Plan shall supersede any provisions to the contrary
in such plans, to the extent permitted by applicable law, and such plans shall
be deemed to have been amended to correspond with this Plan without further
action by the Company or the Board. 
However, if the Participant is a party to a Change in Control Agreement
(or similar agreement), such agreement, and not this Plan, shall apply under
the circumstances described therein.

 

Section 4.06           Termination
of Eligibility for Benefits.  All
Participants shall cease to be eligible to participate in the Plan, and all
Severance Benefit payments shall cease upon the occurrence of the earlier of:

 

(a)           Subject to Article VII,
termination or modification of the Plan; or

 

(b)           Completion of payment
to the Participant of the Severance Benefit for which the Participant is
eligible under Article IV.

 

ARTICLE
V

CONFIDENTIALITY, COVENANT NOT TO COMPETE AND NOT TO SOLICIT

 

Section 5.01           Confidential
Information.  At no time during the
term of Participant’s Employment or during the 24 month period following
Participant’s Termination Date, shall the Participant, without the prior
written consent of the Company, use, divulge, disclose or make accessible to
any other person, firm, 

 

7

 

partnership, corporation
or other entity any Confidential Information pertaining to the business of the
Company or any of its affiliates, except (i) while employed by the
Company, in the business of and for the benefit of the Company, or (ii) when
required to do so by a court of competent jurisdiction, by any governmental
agency having supervisory authority over the business of the Company, or by any
administrative body or legislative body (including a committee thereof) with
jurisdiction to order the Participant to divulge, disclose or make accessible
such information.  For purposes of this Section 5.01,
“Confidential Information” shall mean any trade secret or other
non-public information concerning the financial data, strategic business plans,
product development (or other proprietary product data), customer lists,
marketing plans and other non-public, proprietary and confidential information
of the Company or its affiliates, that, in any case, is not otherwise available
to the public (other than by Participant’s breach of the terms hereof) or known
to persons in the industry generally.

 

Section 5.02           Non-Competition.  The Participant agrees that, during the term
of his or her employment with the Company, and thereafter during the
Restriction Period, he or she shall not directly or indirectly become
associated, as an owner, partner, shareholder (other than as a holder of not in
excess of 5% of the outstanding voting shares of any publicly traded company),
director, officer, manager, employee, agent, consultant or otherwise, with any
car or equipment rental or comparable company, which competes with the
business, and for the customer base, of the Company (a “Competitive Business”).  This Section 5.02 shall not be deemed to
restrict (a) a Participant who is a lawyer from working for or
being associated with a law firm as long as the Participant does not provide
legal services to a Competitive Business or (b) association with
any enterprise that conducts unrelated business or that has material operations
outside of the geographic area that encompasses the Company’s customer base (or
where the Company had plans at the Termination Date to enter) for so long as
the Participant’s role whether direct or indirect (e.g., supervisory), is
solely with respect to such unrelated business or other geographic area (as the
case may be).

 

Section 5.03           Non-Solicitation.  The Participant agrees that, during the term
of his or her employment with the Company, and thereafter during the
Restriction Period, he or she shall not directly or indirectly employ or seek
to employ, or solicit or contact or cause others to solicit or contact with a
view to engage or employ, any person who is or was a managerial level employee
of the Company at the time of the Participant’s Termination Date or at any time
during the twelve-month period preceding such date.  This Section 5.03 shall not be deemed to
be violated solely by (a) placing an advertisement or other general
solicitation or (b) serving as a reference.

 

Section 5.04           Non-Disparagement.  The Participant agrees that he or she shall
not at any time disparage the Company or any officer or employee of the
Company, and shall not, without the prior written consent of the Company, make
any written or oral statement concerning the termination of his or her
employment or any circumstances, 

 

8

 

terms or conditions
relating thereto, which statement is reasonably likely to become generally
known to the public.  Nothing in this Section 5.04
shall prevent the lawful filing or prosecution of any claim against the Company
in any judicial, arbitration, governmental, or other appropriate forum for
adjudication of disputes, any response or disclosure by the Participant
compelled by legal process or required by applicable law or any bona-fide
exercise by the Participant of any shareholder rights he or she may otherwise
have.

 

Section 5.05           Reasonableness.  In the event the provisions of this Article V
shall ever be deemed to exceed the time, scope or geographic limitations
permitted by applicable laws, then such provisions shall be reformed to the
maximum time, scope or geographic limitations, as the case may be, permitted by
applicable laws.

 

Section 5.06           Acknowledgment.  The Plan Administrator shall require, as a
condition to a Participant’s participation in the Plan, that such Participant
enter into a written acknowledgment of the terms of this Article V (and
such other provisions hereof as the Plan Administrator determines appropriate),
in such form as the Plan Administrator shall determine appropriate from time to
time.

 

Section 5.07           Equitable
Relief.

 

(a)           By participating in the
Plan, the Participant acknowledges that the restrictions contained in this Article V
are reasonable and necessary to protect the legitimate interests of the
Company, its Subsidiaries and its affiliates, that the Company would not have
established this Plan in the absence of such restrictions, and that any
violation of any provision of this Article V will result in irreparable
injury to the Company.  By agreeing to
participate in the Plan, the Participant represents that his or her experience
and capabilities are such that the restrictions contained in this Article V
will not prevent the Participant from obtaining employment or otherwise earning
a living at the same general level of economic benefit as is currently the
case.  The Participant further represents
and acknowledges that (i) he or she has been advised by the Company
to consult his or her own legal counsel in respect of this Plan, and (ii) that
he or she has had full opportunity, prior to agreeing to participate in this
Plan, to review thoroughly this Plan with his or her counsel.

 

(b)           The Participant agrees
that the Company shall be entitled to preliminary and permanent injunctive
relief, without the necessity of proving actual damages or posting any bond,
and a court or arbitration may also order an equitable accounting of all
earnings, profits and other benefits arising from any violation of this Article V,
which rights shall be cumulative and in addition to any other rights or
remedies to which the Company may be entitled.

 

9

 

(c)           The Participant and the
Company irrevocably and unconditionally (i) agree that any suit,
action or other legal proceeding arising out of this Article V, including
without limitation, any action commenced by the Company for preliminary and
permanent injunctive relief or other equitable relief, may be brought in the
United States District Court for the District of New Jersey, or if such court
does not have jurisdiction or will not accept jurisdiction, in any court of
general jurisdiction in New Jersey, (ii) consent to the
non-exclusive jurisdiction of any such court in any such suit, action or
proceeding, and (iii) waive any objection which Participant may
have to the laying of venue of any such suit, action or proceeding in any such
court.

 

Section 5.08           Survival of
Provisions.  The obligations contained
in this Article V shall survive the termination of Participant’s
employment with the Company or a Subsidiary and shall be fully enforceable
thereafter.

 

ARTICLE
VI

THE PLAN ADMINISTRATOR

 

Section 6.01           Authority and Duties.  It shall be the duty of the Plan
Administrator, on the basis of information supplied to it by the Company and
the Committee, to properly administer the Plan. 
The Plan Administrator shall have the full power, authority and
discretion to construe, interpret and administer the Plan, to make factual
determinations, to correct deficiencies therein, and to supply omissions.  All decisions, actions and interpretations of
the Plan Administrator shall be subject only to determinations by the Named
Appeals Fiduciary (as defined in Section 9.04), with respect to denied
claims for Severance Benefits, and in the event of any judicial or arbitral
proceeding shall be subject to de novo review. 
The Plan Administrator may adopt such rules and regulations and may
make such decisions as it deems necessary or desirable for the proper
administration of the Plan. 
Notwithstanding anything else herein to the contrary, all decisions,
actions and interpretations of the Named Appeals Fiduciary shall be subject to
de novo review by the arbitrator pursuant to Section 9.05 hereof.

 

Section 6.02           Compensation of the
Plan Administrator.  The Plan
Administrator shall receive no compensation for services as such.  However, all reasonable expenses of the Plan
Administrator shall be paid or reimbursed by the Company upon proper
documentation.  The Plan Administrator
shall be indemnified by the Company against personal liability for actions
taken in good faith in the discharge of the Plan Administrator’s duties.

 

Section 6.03           Records, Reporting
and Disclosure.  The Plan Administrator
shall keep a copy of all records relating to the payment of Severance Benefits
to Participants and former Participants and all other records necessary for the
proper operation of the Plan.  All Plan
records shall be made available to the Committee, the Company and to 

 

10

 

each Participant for
examination during business hours except that a Participant shall examine only
such records as pertain exclusively to the examining Participant and to the Plan.  The Plan Administrator shall prepare and
shall file as required by law or regulation all reports, forms, documents and
other items required by ERISA, the Code, and every other relevant statute, each
as amended, and all regulations thereunder (except that the Company, as payor
of the Severance Benefits, shall prepare and distribute to the proper
recipients all forms relating to withholding of income or wage taxes, Social
Security taxes, and other amounts that may be similarly reportable).

 

ARTICLE
VII

AMENDMENT, TERMINATION AND DURATION

 

Section 7.01           Amendment,
Suspension and Termination.  Except
as otherwise provided in this Section 7.01, the Board or the Committee or
the delegee of the Board or the Committee shall have the right, at any time and
from time to time, to amend, suspend or terminate the Plan in whole or in part,
for any reason or without reason, and without either the consent of or the
prior notification to any Participant, by a formal written action.  No such amendment shall give the Company the
right to recover any amount paid to a Participant prior to the date of such
amendment or to cause the cessation of Severance Benefits already approved for
a Participant who has executed a Release as required under Section 3.02.

 

Section 7.02           Duration.  Unless terminated sooner by the Board or the
Committee or the delegee of the Board or the Committee in accordance with Section 7.01,
the Plan shall continue in full force and effect until termination of the Plan
pursuant to Section 7.01.

 

ARTICLE
VIII

DUTIES
OF THE COMPANY, THE COMMITTEE AND THE PLAN ADMINISTRATOR

 

Section 8.01           Records.  The Company or a Subsidiary thereof shall
supply to the Committee and the Plan Administrator, as the case may be, all
records and information necessary to the performance of the Committee’s and the
Plan Administrator’s duties.

 

Section 8.02           Payment.  Payments of Severance Benefits to
Participants shall be made in such amount as determined by the Committee under Article IV,
from the Company’s general assets or from a supplemental unemployment benefits
trust, in accordance with the terms of the Plan, as directed by the Committee.

 

Section 8.03           Discretion.  Any decisions, actions or interpretations to
be made under the Plan by the Board, the Committee and the Plan Administrator,
acting on behalf 

 

11

 

of either, (i) shall
be made in each of their respective sole discretion, not in any fiduciary
capacity, and (ii) need not be uniformly applied to similarly
situated individuals.  Notwithstanding
anything else herein to the contrary, all decisions, actions and
interpretations of the Plan Administrator and the Named Appeals Fiduciary shall
be accorded deference by the arbitrator pursuant to Section 9.05 hereof
and by a court of competent jurisdiction entering the award of such arbitrator,
in each case to the maximum extent permitted by applicable law.

 

ARTICLE
IX

CLAIMS PROCEDURES

 

Section 9.01           Claim.  Each Participant under this Plan may contest
the administration of the Severance Benefits awarded by completing and filing
with the Plan Administrator a written request for review in the manner
specified by the Plan Administrator.  No
person may bring an action for any alleged wrongful denial of Plan benefits in
a court of law unless the claims procedures described in this Article IX
are exhausted and a final determination is made by the Plan Administrator
and/or the Named Appeals Fiduciary.

 

Section 9.02           Initial
Claim.  Before the date on which
payment of a Severance Benefit occurs, any claim relating to the administration
of such Severance Benefit must be supported by such information as the Plan
Administrator deems relevant and appropriate. 
In the event that any such claim is denied in whole or in part, the
terminated Participant or his or her beneficiary (“Claimant”) whose
claim has been so denied shall be notified of such denial in writing by the
Plan Administrator within ninety (90) days after the receipt of the claim for
benefits.  This period may be extended an
additional ninety (90) days if the Plan Administrator determines such extension
is necessary and the Plan Administrator provides notice of extension to the
Claimant prior to the end of the initial ninety (90) day period.  The notice advising of the denial shall (i) specify
the reason or reasons for denial, (ii) make specific reference to
the Plan provisions on which the determination was based, (iii) describe
any additional material or information necessary for the Claimant to perfect
the claim (explaining why such material or information is needed), and (iv) describe
the Plan’s review procedures and the time limits applicable to such procedures,
including a statement of the Claimant’s right to bring a civil action under Section 502(a) of
ERISA following an adverse benefit determination on review.

 

Section 9.03           Appeals
of Denied Administrative Claims.  All
appeals shall be made by the following procedure:

 

(a)           A Claimant whose claim
has been denied shall file with the Plan Administrator a notice of appeal of
the denial.  Such notice shall be filed
within sixty (60) calendar days of notification by the Plan Administrator of
the denial of 

 

12

 

a claim, shall be made in writing, and shall set forth
all of the facts upon which the appeal is based.  Appeals not timely filed shall be barred.

 

(b)           The
Named Appeals Fiduciary shall consider the merits of the Claimant’s written
presentations, the merits of any facts or evidence in support of the denial of
benefits, and such other facts and circumstances as the Named Appeals Fiduciary
shall deem relevant.

 

(c)           The
Named Appeals Fiduciary shall render a determination upon the appealed claim
which determination shall be accompanied by a written statement as to the
reasons therefor.  The determination
shall be made to the Claimant within sixty (60) days of the Claimant’s request
for review, unless the Named Appeals Fiduciary determines that special
circumstances require an extension of time for processing the claim.  In such case, the Named Appeals Fiduciary
shall notify the Claimant of the need for an extension of time to render its
decision prior to the end of the initial sixty (60) day period, and the Named
Appeals Fiduciary shall have an additional sixty (60) day period to make its
determination.  If the determination is
adverse to the Claimant, the notice shall (i) provide the reason or
reasons for denial, (ii) make specific reference to the Plan
provisions on which the determination was based, (iii) include a
statement that the Claimant is entitled to receive, upon request and free of
charge, reasonable access to, and copies of, all documents, records and other
information relevant to the Claimant’s claim for benefits, and (iv) state
that the Claimant has the right to bring an action under Section 502(a) of
ERISA, and such determination shall be subject to de novo review by the
arbitrator as provided in Section 9.05 hereof.

 

Section 9.04           Appointment
of the Named Appeals Fiduciary.  The
“Named Appeals Fiduciary” shall be the person or persons named as such by the
Board or Committee, or, if no such person or persons be named, then the person
or persons named by the Plan Administrator as the Named Appeals Fiduciary.  Named Appeals Fiduciaries may at any time be
removed by the Board or Committee, and any Named Appeals Fiduciary named by the
Plan Administrator may be removed by the Plan Administrator.  All such removals may be with or without
cause and shall be effective on the date stated in the notice of removal.  The Named Appeals Fiduciary shall be a “Named
Fiduciary” within the meaning of ERISA, and, unless appointed to other
fiduciary responsibilities, shall have no authority, responsibility, or
liability with respect to any matter other than the proper discharge of the
functions of the Named Appeals Fiduciary as set forth herein.

 

Section 9.05           Arbitration;
Expenses.  In the event of any
dispute under the provisions of this Plan, other than a dispute in which the
primary relief sought is an equitable remedy such as an injunction, the parties
shall have the dispute, controversy or claim settled by arbitration in Park
Ridge, New Jersey (or such other location as may be mutually agreed upon by the
Employer and the Participant) in accordance with the

 

13

 

National Rules for
the Resolution of Employment Disputes then in effect of the American
Arbitration Association, before a single arbitrator selected by agreement of
the parties (or, in the absence of such agreement, appointed by the American
Arbitration Association).  Any award
entered by the arbitrator shall be final, binding and nonappealable and
judgment may be entered thereon by either party in accordance with applicable
law in any court of competent jurisdiction. 
This arbitration provision shall be specifically enforceable.  The arbitrator shall have no authority to
modify any provision of this Plan or to award a remedy for a dispute involving
this Plan other than a benefit specifically provided under or by virtue of the
Plan.  If the Participant substantially
prevails on any material issue that is the subject of such arbitration or
lawsuit, the Company shall be responsible for all of the fees of the American
Arbitration Association and the arbitrator and any expenses relating to the
conduct of the arbitration (including the Company’s and Participant’s
reasonable attorneys’ fees and expenses). 
Otherwise, each party shall be responsible for its own expenses relating
to the conduct of the arbitration (including reasonable attorneys’ fees and
expenses) and shall share the fees of the American Arbitration Association.

 

ARTICLE
X

MISCELLANEOUS

 

Section 10.01         Nonalienation of
Benefits.  None of the payments,
benefits or rights of any Participant shall be subject to any claim of any
creditor of any Participant, and, in particular, to the fullest extent
permitted by law, all such payments, benefits and rights shall be free from
attachment, garnishment (if permitted under applicable law), trustee’s process,
or any other legal or equitable process available to any creditor of such
Participant.  No Participant shall have
the right to alienate, anticipate, commute, plead, encumber or assign any of
the benefits or payments that he may expect to receive, contingently or
otherwise, under this Plan, except for the designation of a beneficiary as
contemplated in Section 10.02.

 

Section 10.02         Beneficiary
Designation.  Each Participant under
the Plan may from time to time name any beneficiary or beneficiaries (who may
be named contingently or successively) to whom any benefit under the Plan is to
be paid or by whom any right under the Plan is to be exercised in case of his
or her death.  Each designation will
revoke all prior designations by the same Participant, shall be in a form prescribed
by the Plan Administrator, and will be effective only when filed by the
Participant in writing with the Plan Administrator during his lifetime.  In the absence of any such designation,
benefits remaining unpaid at the Participant’s death shall be paid to or
exercised by the Participant’s surviving spouse, if any, or otherwise to or by
his or her estate.

 

Section 10.03         Notices.  All notices and other communications required
hereunder shall be in writing and shall be delivered personally or mailed by
registered or certified mail, return receipt requested, or by overnight express
courier service.  In the case of the 

 

14

 

Participant, mailed
notices shall be addressed to him or her at the home address that he or she
most recently communicated to the Company in writing.  In the case of the Company, mailed notices
shall be addressed to the Plan Administrator, with copies to the Senior Vice
President, Human Resources and the General Counsel of the Company.

 

Section 10.04         409A Compliance.  The Plan is intended to be administered in a
manner consistent with the requirements, where applicable, of Section 409A
of the Code.  Where reasonably possible
and practicable, the Plan shall be administered in a manner to avoid the
imposition on Participants of immediate tax recognition and additional taxes
pursuant to such Section 409A. 
Notwithstanding the foregoing, neither the Company nor the Plan
Administrator shall have any liability to any person in the event such Section 409A
applies to any such Award in a manner that results in adverse tax consequences
for the Participant or any of his beneficiaries or transferees.

 

Section 10.05         Successors and Assigns.  The rights under this Plan are personal to
the Participant and without the prior written consent of the Company shall not
be assignable by the Participant otherwise than by will or the laws of descent
and distribution.  This Plan shall inure
to the benefit of and be enforceable by the Participant’s legal representatives.  This Plan shall inure to the benefit of and
be binding upon the Company and its successors and assigns.  The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Company to
assume expressly and agree to perform this Plan in the same manner and to the
same extent that the Company would be required to perform it if no such
succession had taken place (with a copy of such assumption provided to the
Participant).

 

Section 10.06         No Impact On Benefits.  Except as may otherwise be specifically
stated under any employee benefit plan, policy or program, no amount payable
under the Plan shall be treated as compensation for purposes of calculating a
Participant’s right under any such plan, policy or program.

 

Section 10.07         Timing of
Reimbursements; Effect on Other Payments. 
Except as otherwise provided in this Plan, no Participant shall be
entitled to any cash payments or other severance benefits under any of the
Company’s then current severance pay policies for a termination that is covered
by this Plan for the Participant. 
Anything in this Plan to the contrary notwithstanding, no reimbursement
payable to Participant pursuant to any provisions of this Plan or pursuant to
any plan or arrangement of the Company covered by this Plan shall be paid later
than the last day of the calendar year following the calendar year in which the
related expense was incurred, and no such reimbursement during any calendar
year shall affect the amounts eligible for reimbursement in any other calendar
year, except, in each case, to the extent that the right to reimbursement does
not provide for a “deferral of compensation” within the meaning of Section 409A
of the Code.

 

15

 

 

Section 10.08                          No
Mitigation.  A Participant shall not
be required to mitigate the amount of any Severance Benefit provided for in
this Plan by seeking other employment or otherwise, nor shall the amount of any
Severance Benefit provided for herein be reduced by any compensation earned by
other employment or otherwise or subject to offset except as otherwise
expressly provided for herein.

 

Section 10.09                          No
Contract of Employment.  Neither the
establishment of the Plan, nor any modification thereof, nor the creation of
any fund, trust or account, nor the payment of any benefits shall be construed
as giving any Participant or any person whosoever, the right to be retained in
the service of the Company.

 

Section 10.10                          Severability
of Provisions.  If any provision of
this Plan shall be held invalid or unenforceable by a court of competent
jurisdiction, such invalidity or unenforceability shall not affect any other
provisions hereof, and this Plan shall be construed and enforced as if such
provisions had not been included.

 

Section 10.11                          Heirs,
Assigns, and Personal Representatives. 
This Plan shall be binding upon the heirs, executors, administrators,
successors and assigns of the parties, including each Participant, present and
future.

 

Section 10.12                          Headings
and Captions.  The headings and
captions herein are provided for reference and convenience only, shall not be
considered part of the Plan, and shall not be employed in the construction of
the Plan.

 

Section 10.13                          Gender
and Number.  Where the context
admits, words in any gender shall include any other gender, and, except where
otherwise clearly indicated by context, the singular shall include the plural,
and vice versa.

 

Section 10.14                          Unfunded
Plan.  The Plan shall not be
funded.  No Participant shall have any
right to, or interest in, any assets of the Company that may be applied by the
Company to the payment of Severance Benefits.

 

Section 10.15                          Payments
to Incompetent Persons.  Any benefit
payable to or for the benefit of a minor, an incompetent person or other person
incapable of receipting therefor shall be deemed paid when paid to such person’s
guardian or to the party providing or reasonably appearing to provide for the
care of such person, and such payment shall fully discharge the Company, the
Committee and all other parties with respect thereto.

 

Section 10.16                          Lost
Payees.  A benefit shall be deemed
forfeited if the Plan Administrator is unable to locate a Participant to whom a
Severance Benefit is due.  Such Severance
Benefit shall be reinstated if application is made by the Participant for the
forfeited Severance Benefit while this Plan is in operation.

 

16

 

Section 10.17                          Controlling
Law.  This Plan shall be construed
and enforced according to the laws of the State of New Jersey to the extent not
superseded by Federal law.

 

17

 

Annex A

 

	
  Position

  	
   

  	
  Severance Factor

  	
   

  	
  Severance Period

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Business Leads

  	
   

  	
  2.0

  	
   

  	
  24 months

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Chief Financial Officer

  	
   

  	
  1.5

  	
   

  	
  18 months

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Senior Vice
  Presidents and Executive Vice President, Global Supply Chain

  	
   

  	
  1.5

  	
   

  	
  18 months

  

 

 

Exhibit A

 

SEPARATION AGREEMENT 

and 

GENERAL RELEASE OF ALL CLAIMS

 

This Separation
Agreement and General Release of All Claims (the “Agreement”) is entered
into as of [·] by and among [·]
(the “Executive”), Hertz Global Holdings, Inc. and The Hertz
Corporation (hereinafter “Hertz” or the “Companies”), duly acting
under authority of their officers and directors.

 

WHEREAS,
Executive is a participant in the Hertz Global Holdings, Inc. Severance
Plan for Senior Executives (the “Plan”);

 

WHEREAS,
Executive’s employment with Hertz will end effective as of [·];

 

WHEREAS,
in connection with Executive’s separation from employment, Executive is
entitled to certain payments and other benefits under the Plan, so long as
Executive executes and does not revoke this Agreement; and

 

WHEREAS,
the parties desire to fully and finally resolve any disputes, claims or
controversies that have arisen or may arise with respect to Executive’s
employment with and subsequent separation from the Companies.

 

NOW,
THEREFORE, in consideration of the mutual promises, covenants
and agreements stated herein and in the Plan, which Executive and the Companies
agree constitute good and valuable consideration, receipt of which is
acknowledged, the parties stipulate and do mutually agree as follows:

 

1.                                       In
exchange for receiving the payments and benefits described in Section 4 of
the Plan, Executive does for himself and his heirs, executors, administrators, 

 

 

successors, and
assigns, hereby release, acquit, and forever discharge and hold harmless the
Companies and the divisions, subsidiaries and affiliated companies of each of
the Companies, the officers, directors, shareholders, employees, benefit and
retirement plans (as well as trustees and administrators thereof), agents and
heirs of each of the foregoing, and the predecessors, assigns and successors,
past and present of each of the foregoing, and any persons, firms or
corporations in privity with any of them (collectively, the “Company
Released Parties”), of and from any and all actions, causes of action,
claims, demands, attorneys’ fees, compensation, expenses, promises, covenants,
and damages of whatever kind or nature, in law or in equity, which Executive
has, had or could have asserted, known or unknown, at common law or under any
statute, rule, regulation, order or law, whether federal, state or local, or on
any grounds whatsoever from the beginning of the world to the date of execution
of this Agreement, including, without limitation, (1) any and all
claims for any additional severance pay, vacation pay, bonus or other
compensation; (2) any and all claims of discrimination or
harassment based on race, color, national origin, ancestry, religion, marital
status, sex, sexual orientation, disability, handicap, age or other unlawful
discrimination; any claims arising under Title VII of the Federal Civil Rights
Act; the Federal Civil Rights Act of 1991; the Americans with Disabilities Act;
the Age Discrimination in Employment Act; the New Jersey Law Against
Discrimination; or under any other state, federal, local law or regulation or
under the common law; and (3) any and all claims with respect to
any event, matter, damage or injury arising out of his employment relationship
with any Company Released Party, 

 

2

 

and/or the
separation of such employment relationship, and/or with respect to any other
event or matter.

 

The only
exceptions to this Separation Agreement and General Release of All Claims are
with respect to retirement benefits which may have accrued and vested as of the
date of Executive’s employment termination, COBRA rights, enforcement of
Executive’s rights under this Agreement and the Plan, and any claims under
applicable workers’ compensation laws.

 

Nothing in this
Agreement shall be construed to prohibit Executive from filing any future
charge or complaint with the U.S. Equal Employment Opportunity Commission (the “EEOC”)
or participating in any investigation or proceeding conducted by the EEOC, nor
shall any provision of this Agreement adversely affect Executive’s right to
engage in such conduct. Notwithstanding the foregoing, Executive waives the
right to obtain any relief from the EEOC or recover any monies or compensation
as a result of filing a charge or complaint. In addition to agreeing herein not
to bring suit against any Company Released Party, Executive agrees not to seek
damages from any Company Released Party by filing a claim or charge with any
state or governmental agency.

 

2.                                       Executive
shall return to the Companies all Company property and Confidential Information
(as defined in the Plan) of any Company Released Party in Executive’s
possession or control, including without limitation, business reports and
records, client reports and records, customer information, personally
identifiable information relating to others, business strategies, contracts and
proposals, files, a listing 

 

3

 

of customers or
clients, lists of potential customers or clients, technical data, testing or
research data, research and development projects, business plans, financial
plans, internal memoranda concerning any of the above, and all credit cards,
cardkey passes, door and file keys, computer access codes, software, and other
physical or personal property which Executive received, had access to or had in
his possession, prepared or helped prepare in connection with Executive’s
employment with any Company Released Party, and Executive shall not make or
retain any copies, duplicates, reproductions, or excerpts thereof.  Executive acknowledges that in the course of
employment with any one or more Company Released Party, Executive has acquired
Confidential Information and that such Confidential Information has been
disclosed to Executive in confidence and for his use only during and with
respect to his employment with one or more of the Company Released Parties.

 

3.                                       Executive
acknowledges and agrees that he has agreed to be bound by the confidentiality
provision in the Plan for 24 months following Executive’s separation of
employment, the non-competition and non-solicitation covenants in the Plan for
the greater of 12 months or the Severance Period (as defined in the Plan) and
the non-disparagement covenant in the Plan at all times.

 

4.                                       Executive
declares and represents that he has not filed or otherwise pursued any charges,
complaints, lawsuits or claims of any nature against any Company Released Party
arising out of or relating to events occurring prior to the date of this
Agreement, with any federal, state or local governmental agency or court with
respect to any matter covered by this Agreement. In addition to agreeing herein
not to bring suit 

 

4

 

against any
Company Released Party, Executive agrees not to seek damages from any Company
Released Party by filing a claim or charge with any state or governmental
agency.

 

5.                                       Executive
further declares and represents that no promise, inducement, or agreement not
herein expressed has been made to him, that this Agreement contains the entire
agreement between the parties hereto, and that the terms of this Agreement are
contractual and not a mere recital.

 

6.                                       Executive
understands and agrees that this Agreement shall not be considered an admission
of liability or wrongdoing by any party hereto, and each of the parties denies
any liability and agrees that nothing in this Agreement can or shall be used by
or against either party with respect to claims, defenses or issues in any
litigation or proceeding except to enforce rights under the Agreement itself or
under the Plan.

 

7.                                       Executive
understands and agrees that should any provision of this Agreement be declared or
be determined by any court to be illegal or invalid, the validity of the
remaining parts, terms or provisions shall not be affected thereby, and said
invalid part, term, or provision shall be deemed not a part of this Agreement.

 

8.                                       Executive
acknowledges that he understands that he has the right to consult with an
attorney of his choice at his expense to review this Agreement and has been
encouraged by the Companies to do so.

 

9.                                       Executive
further acknowledges that he has been provided twenty-one days to consider and
accept this Agreement from the date it was first given to him, although
Executive may accept it at any time within those twenty-one days.

 

5

 

10.                                 Executive
further understands that he has seven days after signing the Agreement to
revoke it by delivering to the Senior Vice President, Chief Human Resource
Officer, The Hertz Corporation, 225 Brae Boulevard, Park Ridge, New Jersey
07656, written notification of such revocation within the seven day period. If
Executive does not revoke the Agreement, the Agreement will become effective
and irrevocable by him on the eighth day after he signs it.

 

11.                                 Executive
acknowledges that this Agreement sets forth the entire agreement between the
parties with respect to the subject matters hereof and supersedes any and all
prior agreements between the parties as to such matters, be they oral or in
writing, and may not be changed, modified, or rescinded except in writing
signed by all parties hereto, and any attempt at oral modification of this
Agreement shall be void and of no force or effect.

 

12.                                 Executive
acknowledges that he has carefully read this Agreement and understands all of
its terms, including the full and final release of claims set forth above and
enters into it voluntarily.

 

WITH
EXECUTIVE’S SIGNATURE HEREUNDER, EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE HAS
CAREFULLY READ THIS AGREEMENT AND UNDERSTANDS ALL OF ITS TERMS INCLUDING THE
FULL AND FINAL RELEASE OF CLAIMS SET FORTH ABOVE.  EXECUTIVE FURTHER ACKNOWLEDGES THAT EXECUTIVE
HAS VOLUNTARILY ENTERED INTO THIS AGREEMENT; THAT EXECUTIVE HAS NOT RELIED UPON
ANY REPRESENTATION OR STATEMENT, WRITTEN OR UNWRITTEN, NOT SET FORTH IN THIS
AGREEMENT; THAT 

 

6

 

EXECUTIVE
HAS BEEN GIVEN THE OPPORTUNITY TO HAVE THIS AGREEMENT REVIEWED BY HIS ATTORNEY;
AND THAT EXECUTIVE HAS BEEN ENCOURAGED BY THE COMPANIES TO DO SO.

 

EXECUTIVE
ALSO ACKNOWLEDGES THAT EXECUTIVE HAS BEEN AFFORDED 21 DAYS TO CONSIDER THIS
AGREEMENT AND THAT EXECUTIVE HAS 7 DAYS AFTER SIGNING THIS AGREEMENT TO REVOKE
IT BY DELIVERING TO THE SENIOR VICE PRESIDENT, CHIEF HUMAN RESOURCES OFFICER,
AS SET FORTH ABOVE, WRITTEN NOTIFICATION OF EXECUTIVE’S REVOCATION.

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as
of the date set forth above.

 

 

	
   

  	
   

  	
  Date:

  
	
  EXECUTIVE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  THE HERTZ CORPORATION

  	
   

  	
  HERTZ GLOBAL HOLDINGS,
  INC.

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Date:

  	
   

  	
  Date:

  
					

 

7Exhibit 10.40

 

CHANGE
IN CONTROL SEVERANCE AGREEMENT

 

FOR
EXECUTIVE OFFICERS AND CERTAIN NEW KEY EMPLOYEES

 

This Severance Agreement (this “Agreement”)
is made as of                                 
by and between Hertz Global Holdings, Inc., a Delaware corporation, and
any successor to the business and/or assets of the Company that assumes this
Agreement (the “Company”), and                                   (“Executive”).

 

RECITALS

 

WHEREAS the Compensation Committee of the
Board of Directors of the Company (the “Board”) has approved this
severance agreement to provide Executive with certain benefits upon certain
terminations of employment;

 

NOW THEREFORE, the parties hereto agree as
follows:

 

1.                                       Term of
Agreement.  This Agreement shall commence on the date hereof and
shall continue in effect through December 31, 2010; provided, that
the term of this Agreement shall automatically be extended for one additional
year beyond 2010 (and successive one year periods thereafter), unless, not
later than September 30, 2008 (for the additional year ending on December 31,
2011) or September 30 of each year thereafter (for each subsequent
extension), the Company shall have given notice that it does not wish to extend
this Agreement for an additional year, in which event this Agreement shall
continue to be effective until the end of its then remaining term; provided,
however, that, notwithstanding any such notice by the Company not to
extend, if a Change in Control (as defined in Section 2 below) shall have
occurred during the original or any extended term of this Agreement, this
Agreement shall continue in effect for a period of twenty-four months beyond
such Change in Control. Notwithstanding the foregoing, this Agreement shall
terminate if Executive ceases to be an employee of the Company and its
subsidiaries for any reason prior to a Change in Control which, for these
purposes, shall include cessation of such employment as a result of the sale or
other disposition of the division, subsidiary or other business unit by which
Executive is employed.

 

2.                                       Change in
Control.  No benefits shall be payable hereunder unless there
shall have been a Change in Control of the Company. For purposes of this
Agreement, a “Change in Control” shall mean the first to occur of any of the
following after the date of this Agreement:

 

(A)                              the acquisition by any
person, entity or “group” (as defined in Section 13(d) of the
Securities Exchange Act of 1934, as amended), other than any such acquisition
by the Company, any of its subsidiaries, any employee benefit plan of the
Company or any of its subsidiaries, or any of the Investors (as

 

 

defined below), of 50% or more of the combined voting power of the
Company’s then outstanding voting securities;

 

(B)                                within any 24-month
period, the Incumbent Directors (as defined below) shall cease to constitute at
least a majority of the Board or the board of directors of any successor to the
Company, provided that any director elected to the Board, or nominated
for election, by a majority of the Incumbent Directors then still in office
shall be deemed to be an Incumbent Director for purposes of this clause (B); or

 

(C)                                the merger or
consolidation of the Company as a result of which persons who were owners of
the voting securities of the Company immediately prior to such merger or
consolidation, or any of the Investors, do not, immediately thereafter, own,
directly or indirectly, more than 50% of the combined voting power entitled to
vote generally in the election of directors of the merged or consolidated company;

 

(D)                               the approval by the
Company’s shareholders of the liquidation or dissolution of the Company other
than a liquidation of the Company into any subsidiary of the Company or a
liquidation a result of which persons who were stockholders of the Company immediately
prior to such liquidation, or any or all of the Investors, own, directly or
indirectly, more than 50% of the combined voting power entitled to vote
generally in the election of directors of the entity that holds substantially
all of the assets of the Company following such event; and

 

(E)                                 the sale, transfer or
other disposition of all or substantially all of the assets of the Company to
one or more persons or entities that are not, immediately prior to such sale,
transfer or other disposition, affiliates of the Company.

 

Notwithstanding the foregoing, a Change in
Control shall not be deemed to occur if the Company files for bankruptcy,
liquidation or reorganization under the United States Bankruptcy Code.

 

For purposes of the foregoing definition, the
following terms shall have the following meanings:

 

“Incumbent
Director” means the persons who were members of the Board as of the date of
this Agreement; provided, that a director elected, or nominated for
election, to the Board in connection with a proxy contest after the date of
this Agreement shall not be considered an Incumbent Director.

 

“Investors”
means collectively (i) the Initial Investors, (ii) TC
Group L.L.C. (which operates under the trade name The Carlyle Group), (iii) Clayton,

 

2

 

Dubilier & Rice, Inc., (iv) Merrill
Lynch Global Partners, Inc., (v) any affiliate of any of the
foregoing, including any investment fund or vehicle managed, sponsored or
advised by any of the foregoing, (vi) any successor in interest to
any of the foregoing.

 

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

 

“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.

 

“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.

 

“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.

 

3.                                       Termination
Following Change In Control.  If a Change in Control shall have
occurred, Executive shall be entitled to the benefits provided in Section 4(iv) upon
the subsequent termination of Executive’s employment with the Company and its
subsidiaries during the two year period following such Change in Control (the “Protected
Period”) unless such termination is (A) a result of Executive’s
death, Retirement or Disability (except as provided in Section 3(i) below),
(B) by Executive without Good Reason (as defined in Section 3(iii) below),
or (C) by the Company or any of its subsidiaries for Cause (as
defined in Section 3(ii) below). In addition, Executive shall be
entitled to the compensation provided for in Section 4(iv) hereof
(and without regard to Section 4(vii) hereof) payable only upon the
occurrence of an event constituting a Section 409A Change in Control (as
if his termination had occurred after the Section 409A Change in Control)
if, after an agreement has been signed which, if consummated, would result in a
Section 409A Change in Control, (x) Executive is terminated
without Cause by the Company and its subsidiaries prior to the Section 409A
Change in Control, and (y) such termination was at the instigation
or request of the party to the agreement evidencing the transaction that will
result in the Section 409A Change in Control or otherwise occurs in
connection with the anticipated Section 409A Change in Control. “Section 409A
Change in Control” means any event described in Section 2 of this
Agreement if such event also is a “change in control event” within the meaning
of the regulations under Section 409A(a)(2)(A)(v) of the Code
determined in accordance with the uniform methodology and procedures adopted by
the Company.

 

(i)                                     Disability;
Retirement. For purposes of this Agreement, “Disability” shall mean
permanent and total disability as such term is defined 

 

3

 

under Section 22(e)(3) of the
Internal Revenue Code of 1986, as amended (the “Code”), without regard
to whether Executive is subject to the Code. Any question as to the existence
of Executive’s Disability upon which Executive and the Company cannot agree
shall be determined by a qualified independent physician selected by Executive
(or, if Executive is unable to make such selection, such selection shall be
made by any adult member of Executive’s immediate family or Executive’s legal
representative), and approved by the Company, said approval not to be
unreasonably withheld. The determination of such physician made in writing to
the Company and to Executive shall be final and conclusive for all purposes of
this Agreement. For purposes of this Agreement, “Retirement” and
corollary terms shall mean Executive’s voluntary termination of employment with
the Company under any of the Company’s retirement plans that occurs prior to
delivery of a Notice of Termination pursuant to Section 3(iv) below; provided,
that notwithstanding the foregoing, no Retirement that occurs after any other
termination of employment shall adversely affect, interfere with or otherwise
impair in any way Executive’s right to receive the payments and benefits to
which he is entitled on account of a termination without Cause or with Good
Reason. Accordingly, and for the avoidance of doubt, if Executive provides a
Notice of Termination for Good Reason, and otherwise satisfies the conditions
for Good Reason pursuant to this Agreement, and also Retires, such Retirement
shall not adversely affect, interfere with or otherwise impair in any way his
right to receive payments and benefits hereunder. Conversely, if Executive
terminates his employment on account of Retirement and at such time is not (x) terminating
his employment for Good Reason pursuant to this Agreement or (y) being
terminated by the Company without Cause pursuant to this Agreement, he shall
not be entitled to the payments and benefits provided in this Agreement.

 

(ii)                                  Cause. For
purposes of this Agreement, “Cause” shall mean (i) willful
and continued failure to perform substantially the Executive’s material duties
with the Company (other than any such failure resulting from the Executive’s
incapacity due to physical or mental illness) after a written demand for
substantial performance specifying the manner in which the Executive has not
performed such duties is delivered by the Chief Executive Officer of the
Company to the Executive, (ii) engaging in willful and serious
misconduct that is injurious to the Company or any of its subsidiaries, (iii) one
or more acts of fraud or personal dishonesty resulting in or intended to result
in personal enrichment at the expense of the Company or any of its
subsidiaries, (iv) substantial abusive use of alcohol, drugs or
similar substances that, in the sole judgment of the Company, impairs the
Executive’s job performance, (v) material violation of any material
Company policy that results in material harm to the Company or any of its
subsidiaries or (vi) indictment for or conviction of a felony or of
any crime (whether or not a felony) involving moral turpitude. Notwithstanding
the foregoing, Executive shall not be deemed to have been terminated for Cause 

 

4

 

unless and until there shall have been
delivered to Executive a copy of a resolution duly adopted by the affirmative
vote of not less than three-quarters (3/4) of the Incumbent Directors of the
Board at a meeting of the Board called and held for such purpose (after
reasonable notice to Executive and an opportunity for Executive, together with
Executive’s counsel, to be heard before the Board), finding that, in the good
faith opinion of the Board, Executive was guilty of conduct set forth above in
this Section 3(ii) and specifying the particulars thereof in detail.

 

(iii)                               Good Reason. Executive
shall be entitled to terminate employment with Good Reason. For the purpose of
this Agreement, “Good Reason” shall mean the occurrence, without
Executive’s express written consent, of any of the following circumstances
during the Protected Period unless, in the case of Sections 3(iii)(A),
(E), or (F), such circumstances are fully corrected prior to the date specified
as the Date of Termination (as defined in Section 3(v)) in the Notice of
Termination (as defined in Section 3(iv)) given in respect thereof:

 

(A)                              the assignment to
Executive of any duties or responsibilities not comparable to Executive’s
position (as it existed immediately prior to the Change in Control) and that
results in a substantial diminution or material adverse change in such duties
or responsibilities from those in effect immediately prior to the Change in Control
other than a change in title or reporting relationships;

 

(B)                                a reduction by the
Company or any of its subsidiaries in Executive’s annual base salary as in
effect on the date hereof or as the same may be increased from time to time;

 

(C)                                the relocation of
Executive’s place of business to a location more than fifty miles from
Executive’s principal place of employment immediately preceding the Change in
Control that materially increases Executive’s commute compared to Executive’s
commute as in effect immediately prior to the Change in Control;

 

(D)                               a reduction by the
Company or any of its subsidiaries in Executive’s annual bonus opportunity as
in effect on the date hereof or as the same may be increased from time to time;

 

(E)                                 the failure by the
Company or any of its subsidiaries to continue Executive’s participation in any
long-term incentive compensation plan on a level comparable to other senior
executives;

 

(F)                                 except as required by
law, a reduction by the Company or any of its subsidiaries of 5% or more in the
aggregate benefits provided by 

 

5

 

Executive (excluding changes to such benefits
that occur in the ordinary course, are of general application, and increase
co-payments, deductibles or premiums which must be paid by Executive) as those
enjoyed by Executive under the employee benefit and welfare plans of the
Company and its subsidiaries, including, without limitation, the pension, life
insurance, medical, dental, health and accident, retiree medical, disability,
deferred compensation and savings plans, in which Executive was participating
at the time of the Change in Control;

 

(G)                                the failure of the
Company to obtain an agreement from any successor to assume and agree to
perform this Agreement, as contemplated in Section 6 hereof; or

 

(H)                               any purported
termination of Executive’s employment by the Company or its subsidiaries which
is not effected pursuant to a Notice of Termination satisfying the requirements
of Section 3(iv) below (and, if applicable, the requirements of Section 3(ii) above);
for purposes of this Agreement, no such purported termination shall be
effective.

 

Executive’s continued employment shall not
constitute consent to, or a waiver of rights with respect to, any circumstances
constituting Good Reason hereunder. Executive must provide the Notice of
Termination not later than 180 days following the date he or she had actual
knowledge of the event constituting Good Reason.

 

(iv)                              Notice of Termination.
Any purported termination of Executive’s employment by the Company and its
subsidiaries or by Executive shall be communicated by written Notice of
Termination to the other party hereto in accordance with Section 7 hereof.
For purposes of this Agreement, a “Notice of Termination” shall mean a notice
which shall indicate the specific termination provision in this Agreement
relied upon and shall set forth in reasonable detail (other than with respect
to a Good Reason termination pursuant to Section 3(iii)(H)) the facts and
circumstances claimed to provide a basis for termination of Executive’s
employment under the provision so indicated.

 

(v)                                 Date of Termination.
“Date of Termination” shall mean (A) if Executive’s
employment is terminated for Disability, 30 days after Notice of Termination is
given (provided that Executive shall not have returned to the full-time
performance of Executive’s duties during such 30 day period), and (B) if
Executive’s employment is terminated pursuant to Section 3(ii) or (iii) above
or for any reason (other than Disability), the date specified in the Notice of
Termination (which, in the case of a termination pursuant to Section 3(ii) above
shall not be less than 30 days, and in the case of a termination pursuant to Section 3(iii) above
shall not be less than 30 nor more than 60 days, respectively, 

 

6

 

from the date such Notice of Termination is
given); provided, that, if within 30 days after any Notice of
Termination is given the party receiving such Notice of Termination notifies
the other party that a dispute exists concerning the grounds for termination,
the Date of Termination shall be the date on which the dispute is finally
determined, either by mutual written agreement of the parties, by a binding
arbitration award or by a final judgment, order or decree of a court of
competent jurisdiction (which is not appealable or the time for appeal
therefrom having expired and no appeal having been perfected); provided,
further, that the Date of Termination shall be extended by a notice of
dispute only if such notice is given in good faith and the party giving such
notice pursues the resolution of such dispute with reasonable diligence. Notwithstanding
the pendency of any such dispute, the Company and its subsidiaries will continue
to pay Executive’s full compensation in effect when the notice giving rise to
the dispute was given (including, but not limited to, base salary and bonus)
and continue Executive as a participant in all incentive compensation, benefit
and insurance plans in which Executive was participating when the notice giving
rise to the dispute was given, until the dispute is finally resolved in
accordance with this Section 3(v). Amounts paid under this Section 3(v) are
in addition to all other amounts due under this Agreement and shall not be
offset against or reduce any other amounts due under this Agreement. In the
event that the Company is terminating Executive the Company may, if it so
chooses, pay Executive the base salary which he would have received in lieu of waiting
for the expiration of any notice period otherwise required hereby and bar
Executive from any of the Company’s premises, offices or properties, subject to
any rights set forth herein for Executive to contest such termination.

 

4.                                       Compensation
upon Termination or During Disability. Upon termination of Executive’s
employment or during a period of Disability, in either case, during the
Protected Period, Executive shall be entitled to the following benefits:

 

(i)                                     During any period
that Executive fails to perform Executive’s full-time duties with the Company
and its subsidiaries as a result of the Disability, Executive shall continue to
receive an amount equal to Executive’s base salary at the rate in effect at the
commencement of any such period, and Bonus (as defined in Section 4(iv)(B)),
through the Date of Termination for Disability; provided, that if any
such period of Disability ends during the Protected Period, Executive shall
have the right to resume active employment with the Company immediately following
the end of such period of Disability, unless, prior to the end of such period
of Disability, the Company has terminated Executive’s employment. Thereafter,
Executive’s benefits shall be determined in accordance with the employee
benefit programs of the Company and its subsidiaries then in effect.

 

7

 

(ii)                                  If Executive’s
employment is terminated by the Company or any of its subsidiaries for Cause or
by Executive without Good Reason (excluding death, Disability or Retirement)
the Company (or one of its subsidiaries, if applicable) shall pay through the
Date of Termination Executive’s full base salary at the rate in effect at the
time Notice of Termination is given and shall pay any amounts otherwise payable
to Executive on or immediately prior to the Date of Termination pursuant to any
other compensation plans, programs or employment agreements then in effect, and
the Company shall have no further obligations to Executive under this
Agreement.

 

(iii)                               If Executive’s
employment is terminated by reason of Executive’s death or Retirement,
Executive’s benefits shall be determined in accordance with the retirement and
other benefit programs of the Company and its subsidiaries then in effect,
except as otherwise provided in Section 3(i).

 

(iv)                              If Executive’s employment
by the Company and its subsidiaries is terminated (other than for death or
Disability) by (a) the Company and its subsidiaries other than for
Cause or (b) Executive with Good Reason, then, subject to Executive
executing, delivering and not revoking the Release of Claims attached to this
Agreement as Exhibit A (the “Release”) within 30 days following the
Separation from Service Date (as defined in Section 4(vii)), Executive
shall be entitled to the benefits provided below:

 

(A)                              The Company (or one of
its subsidiaries, if applicable) shall pay any unpaid portion of Executive’s
full base salary, at the rate in effect at the time of the Change in Control
(the “Base Salary”), and a pro-rated annual bonus at target level, in
each case, calculated through the Date of Termination, no later than the
thirtieth day following the Date of Termination, plus all other amounts to
which Executive is entitled under any compensation plan of the Company
applicable to Executive, at the time such payments are due.

 

(B)                                The Company shall pay
Executive, not later than 10 days following the date on which the Release has
become effective and irrevocable, as severance pay to Executive, a severance
payment equal to        times the sum of (i) Executive’s
Base Salary, and (ii) Bonus. For purposes of this Agreement, the “Bonus”
shall mean the average annual cash bonus paid (or awarded, if different) in
respect of each of the three prior bonus years (exclusive of any special or
prorated bonuses). If Executive has less than three years of bonus history, “Bonus”
shall mean the target bonus of the year of termination.

 

(C)                                The Company shall
credit the Executive with an additional       
years of age and an additional        “Years of
Service” for all purposes 

 

8

 

under The Hertz Corporation Supplemental
Executive Retirement Plan (“SERP II”) (the length of such additional
years of service, the “Severance Period”) with the benefit under the SERP
II to be provided at the time or times set forth under the terms of SERP II
without regard to Section 4(vii), and the averaging period over which “Final
Average Earnings” (as defined in SERP II) is determined shall include the
Severance Period (and, for this purpose, the payment made pursuant to Section 4(iv)(B) shall
be deemed to be compensation earned ratably over the Severance Period); provided
that, if Executive does not at the Date of Termination have at least five “Vesting
Years of Service” under the “Retirement Plan” (as these terms are used or
defined in SERP II), the following additional provisions shall apply to
Executive: (1) Executive shall, notwithstanding the second
paragraph of Section 3.2 of SERP II, be fully vested in his benefit under
SERP II (as increased pursuant to this Section 4(ii)); (2) if
Executive’s actual years of service plus the years of service credited pursuant
to this Section 4(iv)(C) equal less than five, then, notwithstanding Section 1.10
of SERP II, the averaging period over which Final Average Earnings shall be
determined shall be the period of such actual and credited service; (3) Executive’s
benefit under SERP II and this Agreement shall be reduced applying the
reduction factors set forth in the SERP II to reflect the timing of payment of
such benefit; and (4) such benefit shall be paid at the same time
as the payment set forth in Section 4(iv)(B) is paid.

 

(D)                               From the Date of
Termination, until the earlier of (i) the last day of the Severance
Period or (ii) the date upon which Executive becomes eligible to
participate in plans of another employer (such period, the “Benefit
Continuation Period”), the Company will continue Executive’s participation
and coverage in all the Company’s life, medical, dental plans and other welfare
benefit plans (but excluding the Company’s disability plans) (“Insurance
Benefits”); provided that if any other Company plan, arrangement or
agreement provides for continuation of Insurance Benefits, then Executive shall
receive such coverage under such other plan, arrangement or agreement, and if
the period of such coverage is shorter than the Benefit Continuation Period,
then Executive shall receive pursuant to this Section 4(iv)(D), such
coverage for the remainder of the Benefit Continuation Period.

 

(E)                                 The Company shall
provide to Executive outplacement services or executive recruiting services
provided by a professional outplacement provider or executive recruiter at a
cost to the Company of not more than 10% of Executive’s Base Salary (not to exceed
$25,000) to be provided within the period ending no later than the end of the
year following the year in which the Date of Termination occurs.

 

9

 

(v)                                 To the extent
outstanding following a Change in Control, Executive’s stock options and other
equity awards shall be governed by the terms of the equity incentive plans and
award agreements under which such stock options and other equity awards were awarded.

 

(vi)                              The Company shall also
pay to Executive, no less frequently than monthly, all legal fees and expenses
reasonably incurred by Executive in connection with this Agreement (including
all such fees and expenses, if any, incurred in contesting or disputing the
nature of any such termination for purposes of this Agreement or in seeking to
obtain or enforce any right or benefit provided by this Agreement); provided,
that if a determination is made by the arbitrator selected under Section 12
hereof that Executive has failed to prevail on at least one material claim, the
Company shall not be liable to pay such legal fees or expenses otherwise
provided for thereunder and the Company shall be entitled to recover from
Executive any such amounts so paid (either directly or, except as would violate
the requirements of Section 409A(a)(3) of the Code, by setoff against
any amounts then owed Executive by the Company). Notwithstanding the
penultimate sentence of Section 8, no reimbursement pursuant to this Section 4(vi) shall
be paid later than the last day of the 10th calendar year following the
calendar year in which the applicable statute of limitations for breach of
contract claims expires or, if later, the last day of the calendar year
following the calendar year in which there is a settlement or other final and
nonappealable resolution of the related contest or dispute.

 

(vii)                           Notwithstanding the
foregoing provisions of this Section 4, if, as of the Separation from
Service Date, Executive is a Specified Employee, then, except to the extent
that this Agreement does not provide for a “deferral of compensation” within
the meaning of Section 409A of the Code, the following shall apply:

 

1)                                      No
payments shall be made and no benefits shall be provided to Executive, in each
case, during the period beginning on the Separation from Service Date and
ending on the six-month anniversary of such date or, if earlier, the date of
Executive’s death.

 

2)                                      On
the first business day of the first month following the month in which occurs
the six-month anniversary of the Separation from Service Date or, if earlier,
Executive’s death, the Company shall make a one-time, lump-sum cash payment to
the Executive in an amount equal to the sum of (x) the amounts
otherwise payable to the Executive under this Agreement during the period
described in Section 4(vii)1) above and (y) the amount of
interest on the foregoing at the applicable federal rate for instruments of
less than one year.

 

10

 

For purposes of this Agreement, “Separation from Service Date”
shall mean the date of the Executive’s “separation from service” within the
meaning of Section 409A(a)(2)(i)(A) of the Code and determined in
accordance with the default rules under regulations promulgated under Section 409A
of the Code. “Specified Employee” shall mean a “specified employee”
within the meaning of Section 409A(a)(2)(B)(1) of the Code, as
determined in accordance with the uniform methodology and procedures adopted by
the Company and then in effect.

 

5.                                       Excise Taxes.

 

(i)                                     (A)  In
the event that any payment or benefit received or to be received by Executive
pursuant to the terms of this Agreement (the “Contract Payments”) or in
connection with Executive’s termination of employment or contingent upon a
Change in Control of the Company pursuant to any plan or arrangement or other
agreement with the Company (or any affiliate) (“Other Payments” and,
together with the Contract Payments, the “Payments”) would be subject to
the excise tax (the “Excise Tax”) imposed by Section 4999 of the
Code, as determined as provided below, the Company shall pay to Executive, at
the time specified in Section 5(ii) below, an additional amount (the “Gross-Up
Payment”) such that the net amount retained by Executive, after deduction
of all taxes required to be paid upon the payment provided for by this Section 5(i),
and any interest, penalties or additions to tax payable by Executive with
respect thereto, shall be equal to the total present value of the Excise Taxes
imposed upon the Payments; provided, that if Executive’s Payment is,
when calculated on a net-after-tax basis, less than 110% of the amount of the
Payment which could be paid to Executive under Section 280G of the Code
without causing the imposition of the Excise Tax, then the Payment shall be
limited to the largest amount payable (as described above) without resulting in
the imposition of any Excise Tax (such amount, the “Capped Amount”).

 

(B)                                For purposes of
determining the Capped Amount, whether any of the Payments will be subject to
the Excise Tax and the amounts of such Excise Tax, (1) the total
amount of the Payments shall be treated as “parachute payments” within the
meaning of Section 280G(b)(2) of the Code, and all “excess parachute
payments” within the meaning of Section 280G(b)(1) of the Code shall
be treated as subject to the Excise Tax, except to the extent that, in the
opinion of independent tax counsel selected by the Company’s independent
auditors and reasonably acceptable to Executive (“Tax Counsel”), a
Payment (in whole or in part) does not constitute a “parachute payment” within
the meaning of Section 280G(b)(2) of the Code, or such “excess
parachute payments” (in whole or in part) are not subject to the Excise Tax, (2) the
amount of the Payments that shall be treated as subject to the Excise Tax shall
be equal to the lesser of (A) the total amount of the Payments or (B) the
amount of “excess parachute payments” within the meaning of Section 280G(b)(1) of
the Code (after applying clause (1) hereof), and (3) the value
of any noncash benefits or any deferred payment or benefit shall be determined
by Tax Counsel in accordance with the principles of Sections 280G(d)(3) and

 

11

 

(4) of the Code. For purposes of
determining the amount of the Gross-Up Payment, Executive shall be deemed to
pay federal income tax at the highest marginal rates of federal income taxation
applicable to individuals in the calendar year in which the Gross-Up Payment is
to be made and state and local income taxes at the highest effective rates of
taxation applicable to individuals as are in effect in the state and locality
of Executive’s residence in the calendar year in which the Gross-Up Payment is
to be made, net of the maximum reduction in federal income taxes that can be
obtained from deduction of such state and local taxes, taking into account any
limitations applicable to individuals subject to federal income tax at the
highest marginal rates.

 

(C)                                If the Tax Counsel determines
that any Excise Tax is payable by Executive and that the criteria for reducing
the Payments to the Capped Amount (as described in Section 5(i)(A) above)
is met, then the Company shall reduce the Payments by the amount which, based
on the Tax Counsel’s determination and calculations, would provide Executive
with the Capped Amount, and pay to Executive such reduced Payments; provided
that the Company shall first reduce the severance payment under Section 4(iv)(B) and
shall next reduce the benefits described in Section 4(iv)(C). If the Tax
Counsel determines that no Excise Tax is payable by Executive, it shall, at the
same time as it makes such determination, furnish Executive with an opinion
that he has substantial authority not to report any Excise Tax on his/her
federal, state, local income or other tax return. Any determination by the Tax
Counsel as to the amount of the Gross-Up Payment shall be binding upon the
Company and Executive absent a contrary determination by the Internal Revenue
Service or a court of competent jurisdiction; provided, that no such
determination shall eliminate or reduce the Company’s obligation to provide any
Gross-Up Payment that shall be due as a result of such contrary determination.

 

(ii)                                  The Gross-Up Payments
provided for in Section 5(i) hereof shall be made upon the earlier of
(i) the payment to Executive of any Contract Payment or Other
Payment or (ii) the imposition upon Executive or payment by
Executive of any Excise Tax.

 

(iii)                               Executive shall notify
the Company in writing of any claim by the Internal Revenue Service that, if
successful, would require the payment by the Company of a Gross-Up Payment. Such
notification shall be given as soon as practicable but no later than 10
business days after Executive is informed in writing of such claim and shall
apprise the Company of the nature of such claim and the date on which such
claim is requested to be paid. Executive shall not pay such claim prior to the
expiration of the 30 day period following the date on which Executive gives
such notice to the Company (or such shorter period ending on the date that any
payment of taxes with respect to such claim is due). If the Company notifies
Executive in writing prior to the expiration of such period that it desires to
contest such claim, Executive shall:

 

12

 

1)                                      give
the Company any information reasonably requested by the Company relating to
such claim;

 

2)                                      take
such action in connection with contesting such claim as the Company shall
reasonably request in writing from time to time, including, without limitation,
accepting legal representation with respect to such claim by an attorney
reasonably selected by the Company and reasonably satisfactory to Executive;

 

3)                                      cooperate
with the Company in good faith in order to effectively contest such claim; and

 

4)                                      permit
the Company to participate in any proceedings relating to such claim;

 

provided, that the
Company shall bear and pay directly all costs and expenses (including, but not
limited to, additional interest and penalties and related legal, consulting or
other similar fees) incurred in connection with such contest and shall
indemnify and hold Executive harmless, on an after-tax basis, for any Excise
Tax or other tax (including interest and penalties with respect thereto)
imposed as a result of such representation and payment of costs and expenses.

 

(iv)                              The Company shall control
all proceedings taken in connection with such contest and, at its sole option,
may pursue or forego any and all administrative appeals, proceedings, hearings
and conferences with the taxing authority in respect of such claim and may, at
its sole option, either direct Executive to pay the tax claimed and sue for a
refund or contest the claim in any permissible manner, and Executive agrees to
prosecute such contest to a determination before any administrative tribunal,
in a court of initial jurisdiction and in one or more appellate courts, as the
Company shall determine; provided, that if the Company directs Executive
to pay such claim and sue for a refund, the Company shall advance the amount of
such payment to Executive on an interest-free basis, and shall indemnify and
hold Executive harmless, on an after-tax basis, from any Excise Tax or other
tax (including interest or penalties with respect thereto) imposed with respect
to such advance or with respect to any imputed income with respect to such
advance; and provided, further, that if Executive is required to
extend the statute of limitations to enable the Company to contest such claim,
Executive may limit this extension solely to such contested amount. The Company’s
control of the contest shall be limited to issues with respect to which a
Gross-Up Payment would be payable hereunder and Executive shall be entitled to
settle or contest, as the case may be, any other issue raised by the Internal
Revenue Service or any other taxing authority. In addition, no position may be
taken nor any final resolution be agreed to by the Company without Executive’s
consent if such position or resolution could reasonably be expected to
adversely affect Executive (including any other tax position of Executive
unrelated to the matters covered hereby).

 

13

 

(v)                                 As a result of the
uncertainty in the application of Section 4999 of the Code at the time of
the initial determination by the Company or the Tax Counsel hereunder, it is
possible that Gross-Up Payments which will not have been made by the Company
should have been made (“Underpayment”), consistent with the calculations
required to be made hereunder. In the event that the Company exhausts its
remedies and Executive thereafter is required to pay to the Internal Revenue
Service an additional amount in respect of any Excise Tax, the Company or the
Tax Counsel shall determine the amount of the Underpayment that has occurred
and any such Underpayment shall promptly be paid by the Company to or for the
benefit of Executive.

 

(vi)                              If, after the receipt by
Executive of the Gross-Up Payment or an amount advanced by the Company in
connection with the contest of an Excise Tax claim, Executive becomes entitled
to receive any refund with respect to such claim, Executive shall promptly pay
to the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after the receipt by
Executive of an amount advanced by the Company in connection with an Excise Tax
claim, a determination is made that Executive shall not be entitled to any
refund with respect to such claim and the Company does not notify Executive in
writing of its intent to contest the denial of such refund prior to the
expiration of 30 days after such determination, such advance shall be forgiven
and shall not be required to be repaid.

 

(vii)                           Notwithstanding the other
provisions of this Section 5 and the penultimate sentence of Section 9,
all Gross-Up Payments shall be made to the Executive not later than the end of
the calendar year following the year in which the Executive remits the related
taxes and any reimbursement of the costs and expenses described in Section 5(iii) shall
be paid not later than the end of the calendar year following the year in which
there is a final and nonappealable resolution of, or the taxes are remitted
that are the subject of, the related claim.

 

6.                                       Successors;
Binding Agreement.

 

(i)                                     The Company will
require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or
assets of the Company to expressly assume and agree to perform this Agreement
in the same manner and to the same extent that the Company is required to
perform it. Failure of the Company to obtain such assumption and agreement
prior to the effectiveness of any such succession shall be a breach of this
Agreement and shall entitle Executive to compensation from the Company in the
same amount and on the same terms as Executive would be entitled hereunder if
Executive had terminated Executive’s employment with Good Reason following a
Change in Control, except that for purposes of implementing the foregoing, the
date on which any such succession becomes effective shall be deemed the Date of
Termination.

 

14

 

(ii)                                  This Agreement shall
inure to the benefit of and be enforceable by Executive’s personal or legal
representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees. If Executive should die while any amount would still be
payable to Executive hereunder if Executive had continued to live, all such
amounts, unless otherwise provided herein, shall be paid in accordance with the
terms of this Agreement to Executive’s devisee, legatee or other designee or,
if there is no such designee, to Executive’s estate.

 

7.                                       Notice. For
the purpose of this Agreement, notices and all other communications provided
for in this Agreement shall be in writing and shall be deemed to have been duly
given when delivered or mailed by United States registered mail, return receipt
requested, postage prepaid (or its international equivalent)

 

if to the Company to:

 

Hertz Global Holdings, Inc.

225 Brae Boulevard

Park Ridge, New Jersey 07656

Attention: Senior Vice President, Chief Human
Resource Officer

With a separate duplicate copy of such notice
to be provided to the General Counsel of the Company

 

if to the Executive, to the to the Executive at his or her most recent
address as shown on the books and records of the Company or any subsidiary of
the Company employing the Executive.

 

8.                                       Miscellaneous.
No provision of this Agreement may be modified, waived or discharged unless
such waiver, modification or discharge is agreed to in writing and signed by
Executive and such officer as may be specifically designated by the Board. No
waiver by either party hereto at any time of any breach by the other party
hereto of, or compliance with, any conditions or provision of this Agreement to
be performed by such other party shall be deemed a waiver of similar or
dissimilar provisions or conditions at the same or at any prior or subsequent
time. The validity, interpretation, construction and performance of this
Agreement shall be governed by the internal laws of the State of New Jersey,
without regard to its conflict of law provisions. This Agreement is intended to
satisfy the requirements of Section 409A of the Code with respect to
amounts subject thereto and shall be interpreted and construed and shall be
performed by the parties consistent with such intent, and the Company shall
have no right to accelerate any payment or the provision of any benefits under
this Agreement or to make or provide any such payment or benefits if such
payment or provision of such benefits would, as a result, be subject to tax
under Section 409A of the Code. All references to sections of the Code
shall be deemed also to refer to any successor provisions to such sections and
the applicable regulations and guidance thereunder. Any payments provided for
hereunder shall be paid net of any applicable withholding required under
federal, state, local or 

 

15

 

other applicable law. Anything in this
Agreement to the contrary notwithstanding, no reimbursement payable to
Executive pursuant to any provisions of this Agreement or pursuant to any plan
or arrangement of the Company covered by this Agreement shall be paid later
than the last day of the calendar year following the calendar year in which the
related expense was incurred, and no such reimbursement during any calendar
year shall affect the amounts eligible for reimbursement in any other calendar
year, except, in each case, to the extent that the right to reimbursement does
not provide for a “deferral of compensation” within the meaning of Section 409A
of the Code. The obligations of the Company under Sections 4 and 5 shall
survive the expiration of the term of this Agreement.

 

9.                                       Other
Arrangements. The severance benefits under this Agreement are not additive
or cumulative to severance or termination benefits that Executive might also be
entitled to receive under the terms of a written employment agreement, a
severance agreement or any other arrangement with the Company. As a condition
of the Company entering into this Agreement, Executive expressly agrees that
this Agreement supersedes all prior agreements, and sets forth the entire
severance benefit to which he or she is entitled while this Agreement remains
in effect. The provisions of this Agreement may provide for payments to
Executive under certain compensation or bonus plans under circumstances where
such plans would not provide for payment thereof. It is the specific intention
of the Company that the provisions of this Agreement shall supersede any
provisions to the contrary in such plans, to the extent permitted by applicable
law, and such plans shall be deemed to have been amended to correspond with
this Agreement without further action by the Company or the Board.

 

10.                                 Validity. The
invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement,
which shall remain in full force and effect.

 

11.                                 Counterparts. This
Agreement may be executed in several counterparts, each of which shall be
deemed to be an original but all of which together will constitute one and the
same instrument.

 

12.                                 Arbitration;
Indemnification.

 

(i)                                     In the event of
any dispute under the provisions of this Agreement, other than a dispute in
which the primary relief sought is an equitable remedy such as an injunction,
the parties shall have the dispute, controversy or claim settled by arbitration
in Park Ridge, New Jersey (or such other location as may be mutually agreed
upon by the Company and the Executive) in accordance with the National Rules for
the Resolution of Employment Disputes then in effect of the American
Arbitration Association, before a single arbitrator selected by agreement of
the parties (or, in the absence of such agreement, appointed by the American
Arbitration Association). Any award entered by the arbitrator shall be final,
binding and nonappealable and judgment may be entered 

 

16

 

thereon by either party in accordance with
applicable law in any court of competent jurisdiction. This arbitration
provision shall be specifically enforceable. The arbitrator shall have no
authority to modify any provision of this Agreement or to award a remedy for a
dispute involving this Agreement other than a benefit specifically provided
under or by virtue of this Agreement. Fees of the American Arbitration
Association and the arbitrator and any expenses relating to the conduct of the
arbitration (including the Company’s and Executive’s reasonable attorneys’ fees
and expenses) shall be paid in accordance with Section 4(vi).

 

(ii)                                  Following any
termination of employment of Executive (other than a termination by the Company
for Cause), the Company shall indemnify and hold harmless Executive to the
fullest extent permitted under the Company’s by-laws (as in effect prior to the
Change in Control) and applicable law for any claims, costs and expenses
arising out of or in connection with Executive’s employment with the Company
(without regard to when such claim is asserted or issue is raised, so long as
it relates to conduct or events that occurred while Executive was employed with
the Company) and shall, for a period of not less than six years following a
Change in Control, maintain directors’ and officers’ liability insurance
coverage for the benefit of Executive which provides him with coverage, if any,
no less favorable than that in effect prior to the Change in Control; provided,
that if the Company maintains directors’ and officers’ liability insurance
coverage for other current or former officers or directors of the Company
following such six-year period, Executive shall also be provided with such
insurance coverage.

 

13.                                 Confidentiality,
Covenant Not to Compete and Not to Solicit.

 

(i)                                     Nondisclosure
of Confidential Information. At no time during the term of Executive’s
employment or the 24 month period following the Executive’s Date of
Termination, shall Executive, without the prior written consent of the Company,
use, divulge, disclose or make accessible to any other person, firm,
partnership, corporation or other entity any Confidential Information
pertaining to the business of the Company or any of its affiliates, except (i) while
employed by the Company, in the business of and for the benefit of the Company,
or (ii) when required to do so by a court of competent
jurisdiction, by any governmental agency having supervisory authority over the
business of the Company, or by any administrative body or legislative body
(including a committee thereof) with jurisdiction to order Executive to
divulge, disclose or make accessible such information. For purposes of this Section 13,
“Confidential Information” shall mean any trade secret or other
non-public information concerning the financial data, strategic business plans,
product development (or other proprietary product data), customer lists,
marketing plans and other non-public, proprietary and confidential information
of the Company or its affiliates, that, in any case, is not otherwise available
to the public (other than by Executive’s breach of the terms hereof) or known
to persons in the industry generally.

 

17

 

(ii)                                  Non Competition.
During the term of Executive’s employment and during the 12 month period
immediately following the date of any termination of Executive’s employment
with the Company, Executive shall not directly or indirectly become associated,
as an owner, partner, shareholder (other than as a holder of not in excess of
5% of the outstanding voting shares of any publicly traded company), director,
officer, manager, employee, agent, consultant or otherwise, with any
partnership, corporation or other entity that competes with the car or
equipment rental business, and for the customer base, of the Company or any of
its subsidiaries. This Section 13(ii) shall not be deemed to restrict
Executive’s association with any enterprise that conducts unrelated business or
that has material operations outside of the geographic area that encompasses
the Company’s customer base (or where the Company had plans at the Date of Termination
to enter) for so long as the Executive’s role whether direct or indirect (e.g.,
supervisory), is solely with respect to such unrelated business or other
geographic area (as the case may be).

 

(iii)                               Non Solicitation.
During the term of Executive’s employment and during the 12 month period
immediately following the date of any termination of Executive’s employment
with the Company, Executive shall not directly or indirectly employ or seek to
employ, or solicit or contact or cause others to solicit or contact with a view
to engage or employ, any person who is or was a managerial level employee of
the Company at the time of the Executive’s Date of Termination or at any time
during the twelve-month period preceding such date. This Section 13(iii) shall
not be deemed to be violated solely by (a) placing an advertisement
or other general solicitation or (b) serving as a reference.

 

(iv)                              Reasonableness. If
any provision of this Section 13 shall ever be deemed to exceed the time,
scope or geographic limitations permitted by applicable laws, then such
provisions shall be reformed to the maximum time, scope or geographic
limitations, as the case may be, permitted by applicable laws. Because
Executive’s services are unique and because Executive has had access to Confidential
Information, the parties hereto agree that money damages will be an inadequate
remedy for any breach of this Agreement. In the event of a breach or threatened
breach of this Agreement, the Company or its successors or assigns may, in
addition to other rights and remedies existing in their favor, stop making any
additional payments hereunder to Executive and apply to any court of competent
jurisdiction for specific performance and/or injunctive relief in order to
enforce, or prevent any violations of, the provisions hereof (without the
posting of a bond or other security).

 

14.                                 Amendment and
Waiver. The Company may amend this Agreement at any time and from time to
time; provided that any amendment that is adverse to the Executive shall
be effective only with respect to a Change in Control that occurs one year or
more following the date of such amendment. The provisions of this Agreement may
be waived only with the prior written consent of the Company and the Executive,
and no course of conduct or failure or delay in enforcing the provisions of
this Agreement shall 

 

18

 

affect the validity, binding effect or
enforceability of this Agreement or any provision hereof.

 

15.                                 Entire Agreement.
No agreements or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof have been made by either party which are
not expressly set forth in this Agreement. This Agreement constitutes the
entire understanding between the parties with respect to Executive’s severance
pay in the event of a termination of Executive’s employment with the Company,
superseding all negotiations, prior discussions and preliminary agreements,
written or oral, concerning said severance pay; provided, that any
payments or benefits provided in respect of severance, or indemnification for
loss of employment, pursuant to any severance, employment or similar agreement
between the Company or any of its subsidiaries and Executive, or as required by
applicable law outside the United States, shall reduce any payments or benefits
provided pursuant to this Agreement, except that the payments or benefits
provided pursuant to this Agreement shall not be reduced below zero. Notwithstanding
any provision of this Agreement:  (i) Executive
shall not be required to mitigate the amount of any payment provided by this
Agreement by seeking other employment or otherwise, nor (except as provided for
in Section 4(iv)(D) above) shall the amount of any payment or benefit
provided by this Agreement be reduced by any compensation earned by Executive
as the result of employment by another employer or by retirement benefits
received after the Date of Termination or otherwise, and (ii) except
as otherwise provided in this Agreement, the obligations of the Company to make
payments to Executive and to make the arrangements provided for herein are
absolute and unconditional and may not be reduced by any circumstances,
including without limitation any set-off, counterclaim, recoupment, defense or
other right which the Company may have against Executive or any third party at
any time.

 

19

 

16.                                 Further Action.
The Company shall take any further action necessary or desirable to implement
the provisions of this Agreement or perform its obligations hereunder.

 

 

	
   

  	
  HERTZ GLOBAL HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Executive

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  

 

20

 

Exhibit A

 

SEPARATION
AGREEMENT 

and 

GENERAL RELEASE OF ALL CLAIMS(1)

 

This
Separation Agreement and General Release of All Claims (the “Agreement”)
is entered into as of [·] by and among [·]
(the “Executive”), Hertz Global Holdings, Inc. and The Hertz
Corporation (hereinafter “Hertz” or the “Companies”), duly acting
under authority of their officers and directors.

 

WHEREAS,
Hertz Global Holdings, Inc. and the Executive have entered into a Change
in Control Severance Agreement, dated as of [·]
(the “Severance Agreement”);

 

WHEREAS,
Executive’s employment with Hertz will end effective as of [·];

 

WHEREAS,
in connection with Executive’s separation from employment, Executive is
entitled to certain payments and other benefits under the Severance Agreement,
so long as Executive executes and does not revoke this Agreement; and

 

WHEREAS,
the parties desire to fully and finally resolve any disputes, claims or
controversies that have arisen or may arise with respect to Executive’s
employment with and subsequent separation from the Companies.

 

NOW,
THEREFORE, in consideration of the mutual promises, covenants
and agreements stated herein and in the Severance Agreement, which Executive
and the 

 

	
  (1)

  	
  To be revised if
  necessary or appropriate under any applicable law to effect a complete and
  total release of claims by the Executive as of the effective date of the
  Agreement.

  

 

 

 

Companies
agree constitute good and valuable consideration, receipt of which is
acknowledged, the parties stipulate and do mutually agree as follows:

 

1.             In
exchange for receiving the payments and benefits described in Sections 4 and 5
of the Severance Agreement, Executive does for himself and his heirs,
executors, administrators, successors, and assigns, hereby release, acquit, and
forever discharge and hold harmless the Companies and the divisions,
subsidiaries and affiliated companies of each of the Companies, the officers,
directors, shareholders, employees, benefit and retirement plans (as well as
trustees and administrators thereof), agents and heirs of each of the
foregoing, and the predecessors, assigns and successors, past and present of
each of the foregoing, and any persons, firms or corporations in privity with
any of them (collectively, the “Company Released Parties”), of and from
any and all actions, causes of action, claims, demands, attorneys’ fees,
compensation, expenses, promises, covenants, and damages of whatever kind or
nature, in law or in equity, which Executive has, had or could have asserted,
known or unknown, at common law or under any statute, rule, regulation, order
or law, whether federal, state or local, or on any grounds whatsoever from the
beginning of the world to the date of execution of this Agreement, including,
without limitation, (1) any and all claims for any additional
severance pay, vacation pay, bonus or other compensation; (2) any
and all claims of discrimination or harassment based on race, color, national
origin, ancestry, religion, marital status, sex, sexual orientation,
disability, handicap, age or other unlawful discrimination; any claims arising
under Title VII of the Federal Civil Rights Act; the Federal Civil Rights Act
of 

 

22

 

1991; the Americans with Disabilities Act; the Age
Discrimination in Employment Act; the New Jersey Law Against Discrimination; or
under any other state, federal, local law or regulation or under the common
law; and (3) any and all claims with respect to any event, matter,
damage or injury arising out of his employment relationship with any Company
Released Party, and/or the separation of such employment relationship, and/or
with respect to any other event or matter.

 

The
only exceptions to this Separation Agreement and General Release of All Claims
are with respect to retirement benefits which may have accrued and vested as of
the date of Executive’s employment termination, COBRA rights, enforcement of
Executive’s rights under this Agreement and the Severance Agreement, and any
claims under applicable workers’ compensation laws.

 

Nothing
in this Agreement shall be construed to prohibit Executive from filing any
future charge or complaint with the U.S. Equal Employment Opportunity
Commission (the “EEOC”) or participating in any investigation or
proceeding conducted by the EEOC, nor shall any provision of this Agreement
adversely affect Executive’s right to engage in such conduct. Notwithstanding
the foregoing, Executive waives the right to obtain any relief from the EEOC or
recover any monies or compensation as a result of filing a charge or complaint.
In addition to agreeing herein not to bring suit against any Company Released
Party, Executive agrees not to seek damages from any Company Released Party by
filing a claim or charge with any state or governmental agency.

 

23

 

2.             Executive
shall return to the Companies all Company property and Confidential Information
(as defined in the Severance Agreement) of any Company Released Party in
Executive’s possession or control, including without limitation, business
reports and records, client reports and records, customer information,
personally identifiable information relating to others, business strategies,
contracts and proposals, files, a listing of customers or clients, lists of potential
customers or clients, technical data, testing or research data, research and
development projects, business plans, financial plans, internal memoranda
concerning any of the above, and all credit cards, cardkey passes, door and
file keys, computer access codes, software, and other physical or personal
property which Executive received, had access to or had in his possession,
prepared or helped prepare in connection with Executive’s employment with any
Company Released Party, and Executive shall not make or retain any copies,
duplicates, reproductions, or excerpts thereof. Executive acknowledges that in
the course of employment with any one or more Company Released Party, Executive
has acquired Confidential Information and that such Confidential Information
has been disclosed to Executive in confidence and for his use only during and
with respect to his employment with one or more of the Company Released
Parties.

 

3.             Executive
acknowledges and agrees that he has agreed to be bound by the confidentiality provision
in the Severance Agreement for 24 months following Executive’s separation of
employment and the non-competition and non-solicitation 

 

24

 

covenants in the Severance Agreement for 12 months
following Executive’s separation of employment.

 

4.             Executive
declares and represents that he has not filed or otherwise pursued any charges,
complaints, lawsuits or claims of any nature against any Company Released Party
arising out of or relating to events occurring prior to the date of this
Agreement, with any federal, state or local governmental agency or court with
respect to any matter covered by this Agreement. In addition to agreeing herein
not to bring suit against any Company Released Party, Executive agrees not to
seek damages from any Company Released Party by filing a claim or charge with
any state or governmental agency.

 

5.             Executive
further declares and represents that no promise, inducement, or agreement not
herein expressed has been made to him, that this Agreement contains the entire
agreement between the parties hereto, and that the terms of this Agreement are
contractual and not a mere recital.

 

6.             Executive
understands and agrees that this Agreement shall not be considered an admission
of liability or wrongdoing by any party hereto, and each of the parties denies
any liability and agrees that nothing in this Agreement can or shall be used by
or against either party with respect to claims, defenses or issues in any
litigation or proceeding except to enforce rights under the Agreement itself or
under the Severance Agreement.

 

25

 

7.             Executive
understands and agrees that should any provision of this Agreement be declared
or be determined by any court to be illegal or invalid, the validity of the
remaining parts, terms or provisions shall not be affected thereby, and said
invalid part, term, or provision shall be deemed not a part of this Agreement.

 

8.             Executive
acknowledges that he understands that he has the right to consult with an
attorney of his choice at his expense to review this Agreement and has been
encouraged by the Companies to do so.

 

9.             Executive
further acknowledges that he has been provided twenty-one days to consider and
accept this Agreement from the date it was first given to him, although
Executive may accept it at any time within those twenty-one days.

 

10.           Executive
further understands that he has seven days after signing the Agreement to
revoke it by delivering to the Senior Vice President, Chief Human Resource
Officer, The Hertz Corporation, 225 Brae Boulevard, Park Ridge, New Jersey
07656, written notification of such revocation within the seven day period. If
Executive does not revoke the Agreement, the Agreement will become effective
and irrevocable by him on the eighth day after he signs it.

 

11.           Executive
acknowledges that this Agreement sets forth the entire agreement between the
parties with respect to the subject matters hereof and supersedes any and all
prior agreements between the parties as to such matters, be they oral or in
writing, and may not be changed, modified, or rescinded except in writing
signed by all 

 

26

 

parties hereto, and any attempt at oral modification
of this Agreement shall be void and of no force or effect.

 

12.           Executive
acknowledges that he has carefully read this Agreement and understands all of
its terms, including the full and final release of claims set forth above and
enters into it voluntarily.

 

WITH EXECUTIVE’S
SIGNATURE HEREUNDER, EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE HAS CAREFULLY READ
THIS AGREEMENT AND UNDERSTANDS ALL OF ITS TERMS INCLUDING THE FULL AND FINAL
RELEASE OF CLAIMS SET FORTH ABOVE. EXECUTIVE FURTHER ACKNOWLEDGES THAT
EXECUTIVE HAS VOLUNTARILY ENTERED INTO THIS AGREEMENT; THAT EXECUTIVE HAS NOT
RELIED UPON ANY REPRESENTATION OR STATEMENT, WRITTEN OR UNWRITTEN, NOT SET
FORTH IN THIS AGREEMENT; THAT EXECUTIVE HAS BEEN GIVEN THE OPPORTUNITY TO HAVE
THIS AGREEMENT REVIEWED BY HIS ATTORNEY; AND THAT EXECUTIVE HAS BEEN ENCOURAGED
BY THE COMPANIES TO DO SO.

 

EXECUTIVE
ALSO ACKNOWLEDGES THAT EXECUTIVE HAS BEEN AFFORDED 21 DAYS TO CONSIDER THIS
AGREEMENT AND THAT EXECUTIVE HAS 7 DAYS AFTER SIGNING THIS AGREEMENT TO REVOKE
IT BY DELIVERING TO THE SENIOR VICE PRESIDENT, CHIEF HUMAN RESOURCES OFFICER,
AS SET FORTH ABOVE, WRITTEN NOTIFICATION OF EXECUTIVE’S REVOCATION.

 

IN WITNESS WHEREOF, the parties have caused this
Agreement to be duly executed as of the date set forth above.

 

27

 

	
   

  	
   

  	
  Date:

  
	
  EXECUTIVE

  	
   

  
	
   

  	
   

  
	
  THE HERTZ
  CORPORATION

  	
  HERTZ GLOBAL
  HOLDINGS, INC.

  
	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
  By: 

  	
   

  
	
  Date:

  	
  Date:

  
					

 

28

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