Avis 2006 Annual Report Download - page 125

Exhibit 10.8
August 14, 2006
Mr. John McClain
1 Campus Drive
Parsippany, NJ 07054
Dear John:
I want to take this opportunity to share with you the options that are being made available to you as part of Cendant’s separation plan and your
transition in connection therewith. As you know, you have been placed in Avis Budget Group and will initially have executive responsibility
for RemainCo activities, reporting to David Wyshner. For the immediate future, however, following the spin-off of Wyndham Worldwide and
the assumption of the CFO responsibilities of Wyndham by Gina Wilson, you will be appointed Chief Accounting Officer of Cendant
Corporation and will hold that title until such time as all required 2006 filings have been made with the SEC. In addition, you will also be
named Chief Operating Officer of Cendant Finance Holding Corporation, where you will have responsibility for overseeing several functions
associated with Cendant’s legacy as the former parent company of Realogy Corporation, Wyndham Worldwide Corporation and TravelPort
Inc. (herein referred to as “RemainCo activities”). Over time, it is likely that this position will be eliminated as RemainCo activities subside.
Although no assurances can be given, we will endeavor to find a position of comparable level within Avis Budget Group.
In the event that no opportunities arise from September 1, 2007 through December 31, 2007 , or in the event that you are terminated without
cause prior to December 31, 2007,
you will be eligible to initiate your severance as outlined below with 30 days notice provided you execute an
agreement and general release in a form acceptable to the Company, Avis Budget Group shall pay to you enhanced severance as follows:
• A lump-sum payment of two times current Base Salary plus the pro-rated portion of the annual target incentive award, net of
applicable withholding.
•
Post
-
termination exercisability of stock options to be given same treatment as other
“
Nova
”
terminations.
• A lump sum would be paid in cash for the ratable portion of your stock-based award relating to Avis Budget Group granted May 2,
2006, which would have been expensed in accordance with its original vesting schedule by the first anniversary of your termination
of employment.