Avis 2006 Annual Report Download - page 126

Mr. John McClain
Page Two
August 14, 2006
These payments will be in addition to the normal RSU and option vesting afforded generally to all employees of Avis Budget Group and shall
be in lieu of any other severance for which you may otherwise be eligible and are not applicable if you are terminated for cause. These special
severance arrangements will be replaced by the provisions of the Avis Budget Group’s standard severance programs then in effect for similarly
situated executives if you have accepted a full-time role with Avis Budget Group on or before December 31, 2007.
• In addition, a lump sum would be paid in cash for the ratable portion of any subsequent stock-based award relating to Avis Budget
Group which would have been expensed in accordance with its original vesting schedule by the date of your termination of
employment.
• From and after the date of your termination of employment, Avis Budget Group shall provide you and your family continued
coverage under Cendant’s group health plans for a period of 12 months from the Termination Date (the “COBRA Coverage”), at
Cendant’
s expense (other than amounts that are currently your responsibility under the group health plans, as the same may increase
or decrease with renewal of or changes to such plans), provided that you execute all necessary forms electing the COBRA
Coverage. If you begin employment with a new employer that offers medical benefits within the first 12 months after the
Termination Date, you would then be responsible for the then prevailing COBRA rates for terminated employees. If you require
COBRA beyond 12 months after the Termination Date, it will be at the then prevailing COBRA rates for terminated employees and
be available for an additional 6 months as per company policy
Very truly yours,
/s/ Mark Servodidio
Mark Servodidio
Executive Vice President
Human Resources