Document:

Exhibit
10.7

 

This
Loan Agreement (this “Agreement”) is made on November 24, 2020 by and between 2490585
Ontario Inc., an Ontario corporation (“Lender”), and Slinger Bag Inc., a Nevada corporation (together
with its affiliates, “Borrower”).

 

WHEREAS,
Borrower requires a further infusion of U.S. $300,000 in cash (the “Loan”) in order to finance its operations and
Lender wishes to provide the Loan, subject to the terms and on the conditions of this Agreement;

 

Now,
therefore, in consideration of the premises and the mutual covenants and agreements of the Parties hereinafter set forth,
it is hereby agreed by and between the Parties hereto as follows:

 

1.
Loan and Warrants. Lender hereby agrees to lend THREE HUNDRED THOUSAND ($300,000) USD in immediately available funds
to the Borrower on November 25, 2020 by wiring the same in accordance with instructions to be provided by the Borrower separately.
Borrower agrees to accept $300,000 as a loan to be repaid by November 24, 2021. The Loan shall bear interest at a rate of 9.5%
per annum on the outstanding amount until repaid in full. Any payment of cash to be made by Borrower to Lender shall be applied
first to accrued, but unpaid, interest and second to the outstanding principal. The Loan shall be subject to and hereby made an
integral part of the Purchase Order Financing Agreement dated July 8, 2020 between the parties. In further consideration of the
Loan, the Company hereby issues Lender warrants in the form attached hereto as Annex A to purchase 125,000 shares of common stock
(the “Warrants”) subject to the terms and on the conditions set forth in the Warrants.

 

2.
Dividends or Distributions. The Parties agree that Borrower shall not be permitted to declare, make or pay any dividend
or distribution unless and until the Loan is repaid in full.

 

3.
Costs and Fees. Each Party will bear its own costs in connection with the entry into this Agreement and any payments to
be made or received hereunder.

 

4.
Amendments and Assignments. This Agreement may not be amended or assigned without the written consent of all Parties.

 

5.
Further Assurances. Each party hereto agrees to execute, on request, all other documents and instruments as the other party
shall reasonably request, and to take any actions, which are reasonably required or desirable to carry out obligations imposed
under, and affect the purposes of, this Agreement.

 

6.
Governing Law and Jurisdiction. This Agreement shall be governed by the substantive law of the State of New York, without
application of any conflict of laws principle that would require the application of the law of any other jurisdiction

 

    	 	 	 

    	 

    

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.

 

	Slinger
    Bag Inc.	 
	 	 	 
	By:		 
	 	Mike
    Ballardie	 
	 	Chief
    Executive Officer	 
	 	I
    have authority to bind the corporation	 

 

Agreed
and

 

accepted:

 

2490585
Ontario Inc.

 

	By:		 
	 	Elisha
    Kalfa - Director	 
	 	I
    have authority to bind the corporation	 

 

    	 	 	 

    	 

    

 

Annex
A

 

THIS
WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT AND PURSUANT TO THE PROVISIONS OF ARTICLE 4 BELOW, MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAW
OR, IN THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR
TRANSFER, PLEDGE OR HYPOTHECATION IS EXEMPT FROM REGISTRATION.

 

WARRANT
TO PURCHASE COMMON STOCK

 

Company:
Slinger Bag Inc.

 

Holder:
2490585 Ontario Inc.

 

Shares:
125,000 shares of the Company’s
common stock.

 

Class
of Stock: common shares of stock of the Company

 

Exercise
Price per share: par value on a cashless basis (as described in more detail below)

 

Issue
Date: 24 November 2020

 

Term:
See Section 5.1

 

THIS
WARRANT CERTIFIES THAT, for value received as consideration pursuant to that certain loan agreement dated of even date herewith
(the “Agreement”) and for other good and valuable consideration the sufficiency of which is hereby acknowledged, Holder
is entitled to receive the Shares in the form of fully paid and nonassessable shares of the Company at the Exercise Price, all
as set forth herein, subject to the provisions and upon the terms and conditions set forth in this Warrant.

 

ARTICLE
1. EXERCISE.

 

1.1
Method of Exercise. Payment.

 

(a)
Cash Exercise. The purchase rights represented by this Warrant may be exercised by the Holder, in whole or in part, by
the surrender of this Warrant (with the notice of exercise form attached hereto as Appendix 1 duly executed) at the principal
office of the Company, and by the payment to the Company, by certified, cashier’s or other check acceptable to the Company
or by wire transfer to an account designated by the Company, of an amount equal to the aggregate Exercise Price of the Shares
being purchased.

 

(b)
Net Issue Exercise. In lieu of exercising this Warrant, the Holder may elect to receive Shares equal to the value of this
Warrant (or the portion thereof being canceled) by surrender of this Warrant at the principal office of the Company together with
notice of such election, in which event the Company shall issue to the Holder a number of Warrant Shares computed using the following
formula:

 

Y
(A-B)

X
= ——————

—
A

 

    	 	 	 

    	 

    

 

	Where:	X	=	the
    number of Shares to be issued to the Holder.
	 	 	 	 
		Y	=	the
    number of the Shares being exercised on the date of determination.
	 	 	 	 
		A	=	the
    fair market value of one Share on the date of determination.
	 	 	 	 
		B	=	the
    per share Exercise Price (as adjusted to the date of such calculation).

 

(c)
Fair Market Value. For purposes of this Article 1, the per share fair market value of the Warrant Shares shall mean:

 

(i)
If the Company’s Common Stock is publicly traded, the per share fair market value of the Warrant Shares shall be the average
of the closing prices of the Common Stock as quoted on the Over-the-Counter Bulletin Board, or the principal exchange on which
the Common Stock is listed, in each case for the fifteen trading days ending five trading days prior to the date of determination
of fair market value;

 

(ii)
If the Company’s Common Stock is not so publicly traded, the per share fair market value of the Warrant Shares shall be
such fair market value as is determined in good faith by the Board of Directors of the Company after taking into consideration
factors it deems appropriate, including, without limitation, recent sale and offer prices of the capital stock of the Company
in private transactions negotiated at arm’s length.

 

1.2
Delivery of Certificate and New Warrant. Promptly after Holder first exercises this Warrant, the Company shall deliver
to Holder certificates for or other evidence (reasonably acceptable to the Holder) of the Shares received and, if this Warrant
has not been fully exercised and has not expired, a new Warrant representing the Shares not so received.

 

1.3
Replacement of Warrants. On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of this Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably
satisfactory in form and amount to the Company or, in the case of mutilation, on surrender and cancellation of this Warrant, the
Company shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor.

 

ARTICLE
2. ADJUSTMENTS TO THE SHARES.

 

2.1
Stock Dividends, Splits, Combinations, Etc. If the Company declares or pays a dividend on the Shares payable in Common
Stock, or other securities, then upon exercise of this Warrant, for each Share acquired, Holder shall receive, without cost to
Holder, the total number and kind of securities to which Holder would have been entitled had Holder owned the Shares of record
as of the date the dividend occurred. If the Company subdivides the Shares by reclassification or otherwise into a greater number
of shares or takes any other action which increases the amount of stock into which the Shares are convertible, the number of shares
purchasable hereunder shall be proportionately increased and the Exercise Price shall remain the same. If the outstanding shares
of the Company are combined or consolidated, by reclassification or otherwise, into a lesser number of shares, the Exercise Price
shall be proportionately increased and the number of Shares shall be proportionately decreased.

 

    	 	 	 

    	 

    

 

2.2
Reclassification, Exchange or Substitution, Etc. Upon any reclassification, exchange, substitution, or other event that
results in a change of the number and/or class of the securities issuable upon exercise or net exercise of this Warrant, Holder
shall be entitled to receive, upon exercise or net exercise of this Warrant, the number and kind of securities and property that
Holder would have received for the Shares if this Warrant had been exercised immediately before such reclassification, exchange,
substitution, or other event. The Company or its successor shall promptly issue to Holder an amendment to this Warrant setting
forth the number and kind of such new securities or other property issuable upon exercise or net exercise of this Warrant as a
result of such reclassification, exchange, substitution or other event that results in a change of the number and/or class of
securities issuable upon exercise or net exercise of this Warrant.

 

2.3
Merger or Consolidation. Upon any capital reorganization of the Company’s capital stock (other than a subdivision,
combination, reclassification or exchange of shares provided for elsewhere in this Section 2) or a merger or consolidation of
the Company with or into another corporation, then as a part of such reorganization, merger or consolidation, provision shall
be made so that the Holder shall thereafter be entitled to receive upon the exercise of this Warrant, the number and kind of securities
and property of the Company, or of the successor corporation resulting from such reorganization, merger or consolidation, to which
that Holder would have received for the Shares if this Warrant had been exercised immediately before such reorganization, merger
or consolidation.

 

2.4
Fractional Shares. No fractional Shares shall be issuable upon exercise or net exercise of this Warrant and the number
of Shares to be issued shall be rounded up to the nearest whole Share.

 

ARTICLE
3. COVENANTS OF THE COMPANY.

 

3.1
Notice of Certain Events. If the Company proposes at any time (a) to declare any dividend or distribution upon any of its
stock, whether in cash, property, stock, or other securities and whether or not a regular cash dividend; (b) to effect any reclassification
or recapitalization of any of its stock; or (c) to merge or consolidate with or into any other corporation, or sell, lease, license,
or convey all or substantially all of its assets, or to liquidate, dissolve or wind up, then, in connection with each such event,
the Company shall give Holder: (1) at least three (3) days prior written notice of the date on which a record will be taken for
such dividend, distribution, or subscription rights (and specifying the date on which the holders of Common Stock will be entitled
thereto) or for determining rights to vote, if any, in respect of the matters referred to in (a) above; and (2) in the case of
the matters referred to in (b) and (c) above at least three (3) days prior written notice of the date when the same will take
place (and specifying the date on which the holders of Common Stock will be entitled to exchange their Common Stock for securities
or other property deliverable upon the occurrence of such event).

 

3.2
No Stockholder Rights or Liabilities. Except as provided in this Warrant, the Holder will not have any rights as a stockholder
of the Company until the exercise of this Warrant. Absent an affirmative action by the Holder to purchase the Shares, the Holder
shall not have any liability as a stockholder of the Company.

 

3.3
Closing of Books. The Company will at no time close its transfer books against the transfer of this Warrant or of any Shares
issued or issuable upon the exercise of this Warrant in any manner which interferes with the timely exercise of this Warrant.

 

    	 	 	 

    	 

    

 

ARTICLE
4. LIMITATIONS ON BENEFICIAL OWNERSHIP

 

4.1
Initial Limitation. Notwithstanding anything to the contrary contained in this Warrant, the Warrants held by the Holder
shall not be exercisable by the Holder and the Company shall not effect any exercise of any Warrants held by the Holder, in each
case, to the extent (but only to the extent) that the Holder or any of its affiliates would beneficially own in excess of 4.99%
(the “Maximum Percentage”) of the Company’s Common Stock. To the extent the above limitation applies, the determination
of whether the Warrants held by such holder shall be exercisable (vis-a-vis other convertible, exercisable or exchangeable securities
owned by the Holder or any of its affiliates) and of which such securities shall be convertible, exercisable or exchangeable (as
among all such securities owned by the Holder and its affiliates) shall, subject to such Maximum Percentage limitation, be determined
on the basis of the first submission to the Company for conversion, excercise or exchange (as the case may be). No prior inability
of the Holder to exercise the Warrants, or of the Company to issue shares of Common Stock to the Holder, pursuant to this Article
4 shall have any effect on the applicability of the provisions of this Article 4 with respect to any subsequent determination
of exercisability, convertibility or issuance (as the case may be). For purposes of this Article 4, beneficial ownership and all
determinations and calculations (including, without limitation. with respect to calculations of percentage ownership) shall be
determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder. The provisions of this Article 4 shall be implemented in a manner otherwise than in strict conformity
with the terms of this Article 4 to correct this Article (or any portion hereof) which may be defective or inconsistent with the
intended Maximum Percentage beneficial ownership limitation herein contained or to make changes or supplements necessary or desirable
to properly give effect to such Maximum Percentage limitation. For any reason at any time, upon the written or oral request of
the Holder, the Company shall within one business day confirm orally and in writing to the Holder the number of shares of its
Common Stock then outstanding, including by virtue of any prior conversion or exercise of convertible or exercisable securities
into Common Stock, including, without limitation, pursuant to Warrant.

 

4.2
Increase or Decrease in Limitation. By written notice to the Company, the Holder may increase or decrease the Maximum Percentage
to any other percentage not in excess of 9.99% specified in such notice; provided that any such increase will not be effective
until the 61st day after such notice is delivered to the Company.

 

ARTICLE
5. MISCELLANEOUS.

 

5.1
Term. This Warrant is exercisable in whole or in part at any time and from time to time on or before the earlier of 5:00
pm GMT on the tenth (10th) anniversary of the Issue Date.

 

5.2
Legends. This Warrant and the Shares (and the securities issuable, directly or indirectly, upon conversion of the Shares,
if any) shall be imprinted with a legend in substantially the following form:

 

THIS
WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND
UNTIL REGISTERED UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAW OR, IN THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE
SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS EXEMPT FROM REGISTRATION.

 

    	 	 	 

    	 

    

 

5.3
Transfers. This Warrant and the Shares issuable upon exercise of this Warrant (and the securities issuable, directly or
indirectly, upon conversion of the Shares, if any) may not be transferred or assigned in whole or in part without compliance with
applicable federal and state securities laws by the transferor and the transferee (including, without limitation, the delivery
of investment representation letters and legal opinions reasonably satisfactory to the Company, as reasonably requested by the
Company). After compliance with all restrictions on transfer set forth in this Section 4.3, and within a reasonable time after
the Company’s receipt of an executed assignment agreement, the transfer shall be recorded on the books of the Company upon
the surrender of this Warrant, properly endorsed, to the Company at its principal offices, and the payment to the Company of all
transfer taxes and other governmental charges imposed on such transfer. In the event of a partial transfer, the Company shall
issue to the new holders one or more appropriate new warrants.

 

5.4
Notices. All notices and other communications from the Company to the Holder, or vice versa, shall be deemed delivered
and effective when given personally or mailed by first-class registered or certified mail, postage prepaid, at such address as
may have been furnished to the Company or the Holder, as the case may (or on the first business day after transmission by facsimile)
be, in writing by the Company or such Holder from time to time. Effective upon receipt of the fully executed Warrant, all notices
to the Holder shall be addressed as set forth on the signature page hereto until the Company receives notice of a change of address
in connection with a transfer or otherwise. Notice to the Company shall be addressed as set forth on the signature page hereto
until the Holder receives notice of a change in address.

 

5.5
Waiver. This Warrant and any term hereof may be changed, waived, discharged or terminated only by an instrument in writing
signed by the party against which enforcement of such change, waiver, discharge or termination is sought.

 

5.6
Counterparts. This Warrant may be executed in counterparts, all of which together shall constitute one and the same agreement.

 

5.7
Governing Law. This Warrant shall be governed by and construed in accordance with the laws of the State of New York, without
giving effect to its principles regarding conflicts of law.

 

Please
indicate your acceptance of these terms by countersigning where indicated below.

 

	Slinger
    Bag Inc.	 
	 	 	 
	 	 	 
	Name:	 	 
	Title:	 	 

 

Agreed
and accepted:

 

2490585
Ontario Inc.

 

	 		 
	Name:
    	Elisha
    Kalfa	 
	Title:	 	 

 

    	 	 	 

    	 

    

 

Appendix
1

 

SLINGER
BAG INC. 

EXERCISE
NOTICE

 

Reference
is made to the Warrant dated 24 November 2020 between Slinger Bag Inc. (the “Company”) and 2490585 Ontario Inc. (the
“Warrant”). In accordance with and pursuant to the Warrant, the undersigned hereby elects to exercise the Warrant
to purchase shares of common stock of the Company as set forth below. Capitalized terms used but not defined herein have the meanings
assigned to such terms in the Warrant.

 

	 	Date
    of	 	 
	 	Exercise:	 	___________________________________________________________________

 

	 	Number
                                         of shares of ordinary/common

                                                         

	 	(or
    its equivalent) stock to be purchased:             ________________________________________________

 

	Please
    issue shares of common stock in the following name and to the following address: 

 

	 	Issue
    to:________________________________________________________	 
	 	 	 
	 	_____________________________________________________________	 
	 	 	 
	 	Address: _____________________________________________________
	 
	 	 	 
	 	Telephone
    Number: ______________________________________________	 
	 	 	 
	 	Email
    address: ___________________________________________________	 
	 	 	 
	 	Holder:__________________________________________________________	 
	 	              By:	
	 	              Title:EX-10.1

 Exhibit 10.1 

AVIS BUDGET GROUP, INC. 

EXECUTIVE SEVERANCE PAY PLAN 

FOR GRADE A AND B EMPLOYEES 

AND 
 SUMMARY PLAN
DESCRIPTION 
 Dated: January 1, 2021 

 ARTICLE I - INTRODUCTION 

Avis Budget Group, Inc. (the “Company”) hereby establishes the Avis Budget Group, Inc. Executive Severance Pay Plan for Grade A and B
Employees (the “Plan”), effective January 1, 2021, to provide severance benefits to certain employees of the Company and its subsidiaries who suffer a loss of employment under the terms and conditions set forth in the Plan. The Plan
replaces and supersedes any and all severance plans, policies and/or practices of the Company and each of its predecessors and subsidiaries, whether written or unwritten, in effect for Eligible Employees prior to January 1, 2021. This document
also serves as the Summary Plan Description for the Plan. 
 ARTICLE II - DEFINITIONS AND INTERPRETATIONS 

The following definitions and interpretations of important terms apply to the Plan. 

(a)    Agreement and General Release. For purposes hereof, Agreement and General Release shall mean an agreement
provided by the Company or a subsidiary to an Eligible Employee in connection with his or her termination of employment with the Company or a subsidiary, which if executed by the Eligible Employee (and not timely revoked), will acknowledge his or
her termination of employment with the Company or a subsidiary and release the Company and others from liability for any and all claims. The Agreement and General Release may also, in the complete and sole discretion of the Company, include
provisions on non-competition, non-solicitation of customers, employees and other parties, confidentiality, non-disparagement,
return of Company property, cooperation with litigation and such other provisions that the Company deems necessary to protect its interests, except as prohibited by law. By signing the Agreement and General Release, an Employee waives all rights he
or she may have under state and federal employment statutes and all common law causes of action related to his or her employment and the termination thereof. 

(b)    Base Pay. For purposes hereof, Base Pay shall mean an employee’s annual base salary or wages from the
Company. Base Pay shall be determined as reflected on the Company’s payroll or other records as of the date of termination, and shall not include bonuses, overtime pay, shift premiums, commissions, employer contributions for benefits, incentive
or deferred compensation or other additional compensation. For purposes hereof, an Eligible Employee’s Base Pay shall include any salary reduction contributions made on his or her behalf to any plan of the Company under section 125 or 401(k) of
the Internal Revenue Code of 1986, as amended. One week of Base Pay shall mean an employee’s annual Base Pay divided by fifty-two (52). 

(c)    Cause. For purposes hereof, Cause shall mean, with respect to each Eligible Employee, a determination by the
Board of Directors of the Company that the Eligible Employee: 
  

	 	(i)	 has engaged in gross negligence or willful misconduct in the performance of the Eligible Employee’s duties
with respect to the Company or any of its affiliates; 

  
 2 

	 	(ii)	 has materially breached any provision of this Plan or any individual employment or other similar agreement
between the Participant, on the one hand, and the Company or any of its affiliates, on the other hand; 

  

	 	(iii)	 has committed an act of theft, fraud, embezzlement, misappropriation, or willful breach of a fiduciary duty
with respect to the Company or any of its affiliates; or 

  

	 	(iv)	 has been convicted of, pleaded no contest to, or received adjudicated probation or deferred adjudication in
connection with a crime involving fraud, dishonesty, or moral turpitude, or any felony (or a crime of similar import in a foreign jurisdiction). 

(d)    Company. Avis Budget Group, Inc. 

(e)    Eligible Employee. Any United States based employee of the Company or its subsidiaries who: (i) is
classified by the Company as a Grade A or B, active, regular full-time employee as of the date of termination (and not a part-time, temporary or seasonal employee) of the Company or one of its subsidiaries, and (ii) is not compensated solely by
commission or bonus, and (iii) is not covered by an employment agreement or severance agreement with the Company or a subsidiary. Notwithstanding the foregoing, an Eligible Employee shall not include any individual (i) classified as an
independent contractor by the Company or a subsidiary, (ii) being paid by or through an employee leasing company or other third party agency, (iii) whose terms and conditions of employment are determined by a collective bargaining
agreement, or (iv) any other person classified by the Company or a subsidiary as a leased employee, during the period the individual is so paid or classified even if such individual is later retroactively reclassified as a common-law employee of the Company or a subsidiary during all or any part of such period pursuant to applicable law or otherwise. 

(f)    Participant. An Eligible Employee who meets all the requirements set forth in Article III of the Plan. An
individual shall cease being a Participant once payment of all severance pay and other benefits due to such individual under the Plan has been completed (or upon the death of the Participant, if earlier) and no person shall have any further rights
under the Plan with respect to such former Participant. 
 (g)    Plan Administrator. The committee appointed
from time to time by the Company to administer the Plan. The Plan Administrator is specifically authorized to delegate some or all of its responsibilities to one or more individuals or committees, who need not be members of the committee. 

  
 3 

 ARTICLE III - ELIGIBILITY 
  

	 	A.	 WHO IS ELIGIBLE? 

If you are an Eligible Employee, you shall become eligible for the severance pay described in Article IV of the Plan (i.e. you will
become a “Participant”) by meeting the requirements set forth below: 
 (a)    you are involuntarily
terminated by the Company or a subsidiary other than for Cause; and 
 (b)    you deliver a signed and dated, and, if
requested, notarized Agreement and General Release to the individual whose signature appears on the cover letter accompanying the Agreement and General Release by no later than the date (if any) set forth in the Agreement and General Release, and
the time for you to revoke such Agreement and General Release (if any) as specified in the Agreement and General Release has expired. 
 If
you do not satisfy all of the above requirements, you shall not be considered a Participant, and you shall not be entitled to commence or continue to receive any benefits under the Plan. Additionally, you shall not become a Participant, and shall
not become entitled to benefits while you continue to be employed by the Company or a subsidiary. 
  

	 	B.	 WHO IS NOT ELIGIBLE? 

You shall not be eligible for severance pay under this Plan if your employment is terminated other than set forth in paragraph A, including,
but not limited to (i) retirement, (ii) voluntary termination or resignation, (iii) termination by the Company or a subsidiary for Cause or (iv) elimination or discontinuation of your job or position if you are offered a comparable
position by the Company or a subsidiary or a successor to some or all of the Company’s or a subsidiary’s business (whether or not you accept such position). Comparability shall be determined in the sole and absolute discretion of the Plan
Administrator. Notwithstanding the foregoing, the Plan Administrator shall have the discretion to permit Eligible Employees who would not otherwise be eligible for Plan benefits to participate in the Plan. 

ARTICLE IV - SEVERANCE PAY 
  

	 	A.	 HOW MUCH THE PLAN PAYS 

If you are a Participant, the number of eligible weeks you will receive is dependent upon your Company designated grade level: 

Grade Level A Participants will receive: 
  

	 	•	 	 Two (2) years of Base Pay in a lump sum. 

 

	 	•	 	 Annual bonus paid on a pro rata basis determined by multiplying the amount of bonus (as described below) by a
fraction the numerator of which is the number of days in which the Participant was employed during the year of employment termination and the denominator of which is 365. 

  
 4 

	 	•	 	 To the extent that there are individual and Company performance components of the bonus payable, the individual
component will be computed as though target was reached and will be paid in a lump sum. The Company performance component(s) shall be based on the performance measures achieved by the Company as determined in the Company’s sole discretion and
will be paid in the first quarter of the calendar year following the year of employment termination. 

  

	 	•	 	 Accelerated vesting of unvested time-based Restricted Stock Units (“RSUs”) held by the Participant and
scheduled to vest within one (1) year of employment termination. Any remaining unvested RSUs will be forfeited in accordance with the terms of the applicable award agreement. 

 

	 	•	 	 Vesting of performance-based Restricted Stock Units (“PSUs”) held by the Participant and scheduled to
vest within one (1) year of employment termination solely based on the extent to which performance goals are achieved within the performance period set forth in the applicable award agreement. Any remaining unvested PSUs will be forfeited in
accordance with the terms of the applicable award agreement. 

  

	 	•	 	 A lump sum payment equal to the Company’s portion of the medical, dental and vision premiums for the
Participant and his or her family for one year of coverage, with such cost determined on the date of the Participant’s employment termination. 

  

	 	•	 	 If the Participant is eligible for Company-sponsored financial planning at the time of termination, one-year of continued participation in such program. 

  

	 	•	 	 One year of continued participation in the Company automobile or automobile allowance program; provided, however,
if an allowance is in place for a Participant, the one-year value of the allowance will be paid as a lump sum based on the annual allowance amount at the time of the Participant’s employment termination.

  

	 	•	 	 One year of continued participation in the Company vehicle lease management program. 

Grade Level B Participants will receive: 
  

	 	•	 	 One (1) year of Base Pay in a lump sum. 

 

	 	•	 	 Annual bonus paid on a pro rata basis determined by multiplying the amount of bonus (as described below) by a
fraction the numerator of 

  
 5 

	 	 
which is the number of days in which the Participant was employed during the year of employment termination and the denominator of which is 365. 

 

	 	•	 	 To the extent that there are individual and Company performance components of the bonus payable, the individual
component will be computed as though target was reached and will be paid in a lump sum. The Company performance component(s) shall be based on the performance measures achieved by the Company in the Company’s sole discretion and paid in the
first quarter of the calendar year following the year of employment termination. 

  

	 	•	 	 Accelerated vesting of fifty percent (50%) of unvested RSUs held by the Participant and scheduled to vest within
one (1) year of employment termination. Any remaining unvested RSUs will be forfeited in accordance with the terms of the applicable award agreement. 

  

	 	•	 	 Vesting of fifty percent (50%) of PSUs held by Participant and scheduled to vest within one (1) year of
employment termination solely based on the extent to which performance goals are achieved within the performance period set forth in the applicable award agreement. Any remaining unvested PSUs will be forfeited in accordance with the terms of the
applicable award agreement. 

  

	 	•	 	 A lump sum payment equal to the Company’s portion of the medical, dental and vision premiums for the
Participant and his or her family for six (6) months of coverage, with such cost determined on the date of the Participant’s employment termination. 

 

	 	•	 	 If the Participant is eligible for Company-sponsored financial planning at the time of termination, six
(6) months of continued participation in such program. 

  

	 	•	 	 If the Participant is eligible for the Company automobile or automobile allowance program, six (6) months of
continued participation in such applicable program; provided, however, if an allowance is in place for a Participant, the six (6) month value of the allowance will be paid as a lump sum based on the monthly payment amount at the time of the
Participant’s employment termination. 

  

	 	•	 	 Six (6) months of continued participation in the Company vehicle lease management program.

 The severance pay described above is intended to be in full discharge of any and all obligations of the Company and its
affiliates to the Participant, monetarily or with respect to 

  
 6 

 
employee benefits or otherwise, including, but not limited to, any and all obligations arising under any alleged written or oral employment agreement, policy, plan, practice or procedure of the
Company and its affiliates and/or any alleged understanding or arrangement between the Participant and the Company. Notwithstanding anything to the contrary in this Plan, the Plan Administrator may increase or decrease a Participant’s award in
its sole and absolute discretion. 
  

	 	B.	 HOW AND WHEN BENEFITS WILL BE PAID 

Severance pay and benefits are subject to applicable federal, state and local tax deductions and withholding following the effective date of
the applicable Agreement and General Release. Payments of cash which are designated above as lump sum payments shall be paid as soon as administratively feasible after your date of termination but in no event later than two and one half months after
the end of the year in which such termination occurs. Other payments shall be made at the time designated above. 
 If you are or become
eligible for any severance or notice payments or benefits pursuant to any federal, state or local law, severance pay benefits under this plan will be offset by such severance or notice payments or benefits. 

You shall not be eligible after your date of termination for continued coverage under the Company’s medical/dental plans (except to the
extent you elect to continue such coverage as under the Consolidated Omnibus Budget Reconciliation Act of 1985 “COBRA”). If you elect COBRA coverage but do not make the first payment for COBRA coverage within 45 days of your COBRA election
and thereafter pay for COBRA by the first of each month, you must repay any amount set forth above which is based upon the value of the medical, dental and vision coverage that you had enrolled in prior to your termination. 

ARTICLE V - GENERAL PROVISIONS OF THE PLAN 

(a)    Termination of Your Coverage. Coverage under this Plan ends when you are no longer considered a Participant.

 (b)    Termination, Amendment and Modification. Notwithstanding anything in this Plan to the contrary, the
Company expressly reserves the right, at any time, for any reason, without limitation, and in its sole and absolute discretion, to terminate, amend or modify the Plan and any or all of the benefits provided thereunder, either in whole or in part,
whether as to all persons covered thereby or as to one or more groups thereof. The termination, amendment or modification of the Plan shall be effected by a document in writing. 

(c)    No Additional Rights Created. Neither the establishment of this Plan, nor any modification thereof, nor the
payment of any benefits hereunder, shall be construed as giving to any Participant, Eligible Employee (or any beneficiary of either), or other person any legal or equitable right against the Company or any officer, director or employee thereof; and
in no event shall the terms and conditions of employment by the Company of any Eligible Employee be modified or in any way affected by this Plan. There is no promise of employment of any kind by the Company

  
 7 

 
contained in this Plan. Regardless of what this Plan provides, the Company remains free to change wages and all other working conditions (including but not limited to part time status) without
notice or agreement. The Company also continues to have the absolute right to terminate your employment with or without cause. 

(d)    Records. The records of the Company with respect to employment history, Base Pay, absences, and all other
relevant matters shall be conclusive for all purposes of this Plan. 
 (e)    Construction. The respective terms
and provisions of the Plan shall be construed, whenever possible, to be in conformity with the requirements of ERISA, or any subsequent laws or amendments thereto. To the extent not in conflict with the preceding sentence or another provision in the
Plan, the construction and administration of the Plan shall be in accordance with the laws of the State of New Jersey applicable to contracts made and to be performed within such state (without reference to its conflicts of law provisions). 

(f)    Severability. Should any provisions of the Plan be deemed or held to be unlawful or invalid for any reason,
such fact shall not adversely affect the other provisions of the Plan, unless such determination shall render impossible or impracticable the functioning of the Plan, and in such case, an appropriate provision or provisions shall be adopted so that
the Plan may continue to function properly. 
 (g)    Financing. The Company shall pay for benefits under the
Plan out of its general assets. No Participant or any other person shall have any interest whatsoever in any specific asset of the Company. To the extent that any person acquires a right to receive payments under this Plan, such right shall not be
secured by any assets of the Company. 
 (h)    Non-transferability. In
no event shall the Company make any payment under this Plan to any assignee or creditor of a Participant, except as otherwise required by law. Prior to the time of a payment hereunder, a Participant shall have no rights by way of anticipation or
otherwise to assign or otherwise dispose of any interest under this Plan, nor shall rights be assigned or transferred by operation of law. 

(i)    Incompetency. In the event that the Plan Administrator finds that a Participant is unable to care for his or
her affairs because of illness or accident, then benefits payable hereunder, unless claim has been made therefor by a duly appointed guardian, committee, or other legal representative, may be paid in such manner as the Plan Administrator shall
determine, and the application thereof shall be a complete discharge of all liability for any payments or benefits to which such Participant (or designated beneficiary) was or would have been otherwise entitled under this Plan. 

(j)    Welfare Plan. The Company intends that this Plan constitute a “welfare plan” under ERISA and any
ambiguities in this Plan shall be construed to effect that intent. 

  
 8 

 ARTICLE VI - OTHER IMPORTANT INFORMATION 

 

	 	(a)	 Claim Procedure. 

How to File a Claim. If you are a Participant in the Plan, you will automatically receive the benefits set forth under Article IV of the
Plan. If you feel you have not been provided with all benefits to which you are entitled under the Plan, you may file a written claim with the Plan Administrator with respect to your rights to receive benefits from the Plan. If you wish to make a
claim for payment of benefits under the Plan, a claim must be filed by contacting the Human Resources Department at the Company’s headquarters in Parsippany, New Jersey within 180 days of the date you received notification from the Company that
your benefits were denied. You may be required to provide additional information. After your claim has been processed, you will be notified in writing if any benefits are denied in whole or in part, or if any additional information is required by
the office that processes your claim. You will receive this written notification within 90 days after it is filed. Under special circumstances, the Plan Administrator may require an additional period of not more than 90 days to review your claim. If
this occurs, you will be notified in writing as to the length of the extension, the reason for the extension, and any other information needed in order to process your claim. If you are not notified within the
90-day (or 180-day, if so extended) period, you may consider your claim to be denied. 

How to Appeal a Claim. If your claim is denied, in whole or in part, you will be notified in writing of the specific reason(s) for the
denial, the exact plan provision(s) on which the decision was based, what additional material or information is relevant to your case, and what procedure you should follow to get your claim reviewed again. If you do not agree with the reason why
your claim was denied in whole or in part, you should then have 60 days to appeal the decision to the Plan Administrator. 
 Your appeal
must be submitted in writing. You may request to review pertinent documents, and you may submit a written statement of issues and comments. Be sure to state why you believe the claim should not have been denied and submit any data, questions or
comments you think are appropriate. 
 Your appeal will be reviewed by the Plan Administrator, and a decision will be made within 60 days
after the appeal is received. Under special circumstances, the Plan Administrator may require an additional period of not more than 60 days to review your appeal. If this occurs, you will be notified in writing as to the length of the extension, not
to exceed 120 days from the day on which your appeal was received. 
 If your appeal is denied, in whole or in part, you will be notified in
writing of the specific reason(s) for the denial and the exact plan provision(s) on which the decision was based. The decision on your appeal will be final and binding on all parties and persons affected thereby. If you are not notified within the 60-day (or 120-day, if so extended) period, you may consider your appeal as denied. If you are not satisfied with the final decision and you wish to review the documents
pertinent to an appeal claim, you should write to the Plan Administrator. 

  
 9 

 (b)    Plan Interpretation and Benefit Determination. The Plan is
administered and operated by the Plan Administrator, who has the exclusive discretionary authority and power to determine eligibility for benefits and to construe the terms and provisions of the Plan, to determine questions of fact and law arising
under the Plan, to direct disbursements pursuant to the Plan and to exercise all other powers specified herein or which may be implied from the provisions hereof. The Plan administrator may adopt such rules for the conduct of the administration of
the Plan as it may deem appropriate. All interpretations and determinations of the Plan Administrator shall be final and binding upon all parties and persons affected thereby. The Plan Administrator may appoint one or more individuals and delegate
such of its powers and duties as it deems desirable to any such individual(s), in which case every reference herein made to the Plan Administrator shall be deemed to mean or include the appointed individual(s) as to matters within their
jurisdiction. 
 (c)    Your Rights Under ERISA. The following is a statement of your rights under Federal law as
required by the U.S. Department of Labor: 
 As a participant in this Plan, you are entitled to certain rights and protections under the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”). ERISA provides that all Plan participants shall be entitled to: 
  

	 	•	 	 Examine, without charge, at the Plan Administrator’s office and at other specified locations, all Plan
documents and copies of all documents filed by the Plan with the U.S. Department of Labor, such as detailed annual reports and Plan descriptions. 

  

	 	•	 	 Obtain copies of all Plan documents and other Plan information upon written request to the Plan Administrator.
The Plan Administrator may make a reasonable charge for the copies. 

 In addition to creating rights for Plan
participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit Plan. The people who operate your Plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in the interest
of you and other Plan participants and beneficiaries. The named fiduciary is the Employee Benefits Committee. It is illegal for anyone to prevent you from obtaining a benefit or exercising your rights under ERISA by firing you or discriminating
against you in any way. 
 If your claim for a benefit is denied in whole or in part, you must receive a written explanation of the reason
for the denial. You have the right to a review and reconsideration of a denial of benefits under the Plan. 
 Under ERISA, there are steps
you can take to enforce the above rights. For instance, if you request materials from the Plan and do not receive them within 30 days, you may file suit in a federal court. In such a case, the court may require the Plan Administrator to provide the
materials and pay you up to $110 a day until you receive the requested materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator. 

  
 10 

 If you have a claim for benefits which is denied or ignored, in whole or in part, you may
file suit in a state or federal court. If you believe that Plan fiduciaries misused the Plan’s money, or that you have been discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may
file suit in a federal court. The named fiduciary is the Employee Benefits Committee. 
 If you file a suit, the court will decide who
should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if the court finds that your claim
is frivolous. 
 If you have any questions about the Plan, you should contact the Plan Administrator. If you have any questions about this
statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in
your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Ave., N.W., Washington, D.C. 20210. 

(d)    Plan Document. This document shall constitute both the plan document and summary plan description and shall
be distributed to all Eligible Employees in this form. 
 (e)    Other Important Facts. 

 

			
	OFFICIAL NAME OF THE PLAN:	  	Avis Budget Group, Inc. Executive Severance Pay Plan for Grade A and B Employees
		
	SPONSOR:	  	Avis Budget Group, Inc.
		  	6 Sylvan Way
		  	Parsippany, New Jersey 07054
		
	TYPE OF ADMINISTRATION:	  	Employer/Committee Administered
		
	PLAN ADMINISTRATOR:	  	Employee Benefits Committee
		  	6 Sylvan Way
		  	Parsippany, New Jersey 07054
		  	(973) 496-5700
		
	EMPLOYER IDENTIFICATION NUMBER (EIN):	  	06-0918165
		
	PLAN NUMBER:	  	512
		
	TYPE OF PLAN:	  	Employee Welfare Severance Benefit Plan

  
 11 

			
	END OF PLAN YEAR:	  	December 31st
		
	RECORDS:	  	The Plan Administrator keeps records of the Plan and is responsible for the administration of the Plan. The Plan Administrator will also answer any questions you may have about the Plan.
		
	AGENT FOR SERVICE OF LEGAL PROCESS:	  	 General Counsel
 Avis Budget Group, Inc.

6 Sylvan Way
 Parsippany, New Jersey 07054

  
 12

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