Document:

EX-10.1

 Exhibit 10.1 

EXECUTION COPY 

COOPERATION AGREEMENT 

This Cooperation Agreement, dated as of January 25, 2016 (this “Agreement”), is by and among Avis Budget Group, Inc.
(the “Company”) and the entities and natural Persons set forth on Schedule A hereto (together with their Affiliates, “SRS”). 

WHEREAS, SRS is a long-term stockholder of the Company and the Company and SRS have engaged in various discussions and communications
concerning the Company’s long-term business plans; 
 WHEREAS, as of the date hereof, SRS Beneficially Owns 9,500,000 shares of common
stock of the Company, par value $0.01 per share (the “Common Stock”); and 
 WHEREAS, the Company and SRS have determined
to come to an agreement with respect to certain matters relating to the Board of Directors of the Company (the “Board”) and certain other matters, as provided in this Agreement. 

NOW, THEREFORE, in consideration of the covenants and agreements contained herein, and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 
 1. Board Representation. 

(a) No later than two business days following the execution and delivery of this Agreement, the Company will increase the size of the Board to
twelve directors and appoint Brian Choi (the “Initial New Director”) as a director of the Company. The appointment of the Initial New Director will be subject to the execution by such Initial New Director, prior to the execution and
delivery of this Agreement, of the following documents required of all non-executive directors on the Board: the Certification for the Procedures and Guidelines Governing Securities Trades by Company Personnel and the Majority Voting Conditional
Resignation Letter (the “New Director Documentation”) and a D&O questionnaire (in the Company’s standard form). 

(b) From and after the execution and delivery of this Agreement, SRS will have the right to recommend for appointment to the Board an
additional independent director (the “Subsequent New Director” and, together with the Initial New Director, the “New Directors”). The Subsequent New Director must not be a former employee or a current employee,
advisor, consultant or Affiliate of SRS and must (i) have the relevant financial and business experience to be a director of the Company and (ii) not serve as a director or officer of any Competitor and otherwise qualify as
“independent” of the Company pursuant to the applicable stock exchange listing requirements ((i) and (ii), the “Director Criteria”). The appointment of the Subsequent New Director will be subject to a customary due
diligence process by the Board (including the review of a completed D&O questionnaire (in the Company’s standard form), interviews with members of the Board, a customary background check and completion by the Subsequent New Director of the
New Director Documentation). The Company will use its reasonable best efforts to complete its approval process as promptly as practicable. The Company shall appoint the 

 
Subsequent New Director to the Board if (and only if) the Board, taking into account the Subsequent New Director’s skillset and experience, finds the Subsequent New Director to be reasonably
acceptable. In the event the Board reasonably finds that the Subsequent New Director is not acceptable, SRS will be entitled to recommend different nominees which meet the foregoing criteria, and such nominees will be subject to the foregoing
approval process. For the avoidance of doubt, SRS will be entitled to continue to recommend different nominees which meet the foregoing criteria until a Subsequent New Director is appointed. Immediately prior to the appointment of the Subsequent New
Director, the Company will increase the size of the Board by one director to provide for such appointment. 
 (c) The Company’s slate of
nominees for election as directors of the Company at the 2016 annual meeting of stockholders (the “2016 Annual Meeting”) will include the New Directors appointed prior to the date of the mailing of the Company’s definitive
proxy statement in connection with such annual meeting. The Company will recommend that the Company’s stockholders vote in favor of the election of the New Directors at such annual meeting and will support the New Directors for election in a
similar manner as the Company’s other nominees. 
 (d) At all times while serving as a member of the Board (and as a condition to such
service), the New Directors shall (i) comply with all policies, codes and guidelines applicable to Board members (subject to Section 8(b)) and (ii) satisfy clause (ii) of the Director Criteria. 

(e) The New Directors shall be entitled to resign from the Board at any time in their discretion. Should any of the New Directors resign from
the Board or become unable to serve on the Board due to death, disability or other reasons prior to the expiration of the Standstill Period, SRS will have the right to recommend for appointment to the Board a replacement director meeting the same
criteria applicable to the New Director being replaced (a “Replacement”). The appointment of a Replacement will be subject to a customary due diligence process by the Board (including the review of a completed D&O questionnaire
(in the Company’s standard form), interviews with members of the Board, a customary background check and completion by the Replacement of the New Director Documentation). The Company will use its reasonable best efforts to complete its approval
process as promptly as practicable. The Company shall appoint a Replacement to the Board if (and only if) it finds a Replacement to be reasonably acceptable. For the avoidance of doubt, SRS will be entitled to continue to recommend different
nominees which meet the foregoing criteria until a Replacement is appointed. Except as otherwise specified in this Agreement, if a Replacement is appointed, all references in this Agreement to the term “New Directors” will include such
Replacement. 
 (f) For so long as the Initial New Director serves on the Board, the Initial New Director shall be appointed to the
Compensation Committee of the Board. If requested by SRS, for so long as the Subsequent New Director serves on the Board, the Subsequent New Director shall be appointed to the Corporate Governance Committee of the Board. 

2. Standstill Provisions. During the period commencing with the execution and delivery of this Agreement and ending on the date that is
30 days prior to the last date for which notice of a stockholder’s intention to nominate any individual as a director of the Company at the 2017 Annual Meeting must be received by the Company (the “Standstill Period”), SRS
shall not, directly or indirectly, in any manner (whether alone or in concert with others), take any of the following actions (unless specifically permitted to do so in writing in advance by the Board): 

  
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 (a) acquire, offer to acquire, or cause to be acquired Beneficial Ownership of, or a Synthetic
Long Position in, any Voting Securities such that immediately following such transaction SRS would collectively have Beneficial Ownership (including any rights or options to own or acquire any Voting Securities (whether such right or option is
exercisable immediately or only after the passage of time or upon the satisfaction of one or more conditions)) of more than 20,000,000 (as adjusted for stock splits, stock dividends, reverse stock splits and similar transactions) of the
Company’s issued and outstanding Voting Securities; 
 (b) solicit proxies or written consents of stockholders or conduct any other type
of referendum (binding or non-binding) with respect to, or from the holders of, Voting Securities, or become a “participant” (as such term is defined in Instruction 3 to Item 4 of Schedule 14A promulgated under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”)), in or assist, advise, knowingly encourage or knowingly influence any Third Party in any “solicitation” of any proxy, consent or other authority (as such terms are defined
under the Exchange Act) to vote any Voting Securities (other than such advice, encouragement or influence that is consistent with the Board’s recommendation in connection with such matter); 

(c) other than through open market or block trade brokered sale transactions where the identity of the purchaser is unknown to SRS, sell, offer
or agree to sell any Voting Securities of the Company to any Third Party that, to the knowledge of SRS after due inquiry, (i) has aggregate Beneficial Ownership (together with its Affiliates and Associates) of more than 4.9% of the issued and
outstanding Common Stock or (ii) would result in such Third Party having aggregate Beneficial Ownership (together with its Affiliates and Associates) of more than 4.9% of the issued and outstanding Common Stock; 

(d) effect or seek to effect, offer or propose to effect, cause or participate in, or in any way assist, facilitate or encourage any other
Person to effect or seek, offer or propose to effect or participate in, any tender or exchange offer, merger, consolidation, acquisition, scheme, arrangement, business combination, recapitalization, reorganization, sale or acquisition of assets,
liquidation, dissolution or other extraordinary transaction involving the Company or any of its subsidiaries or any of their respective securities (each, an “Extraordinary Transaction”) other than an Extraordinary Transaction
approved by the Board; provided that nothing in this paragraph (d) shall preclude or prohibit SRS (or its Affiliates) from tendering into a tender or exchange offer; 

(e) (i) call or seek the Company or any other Person to call any meeting of stockholders, including by written consent, (ii) seek
representation on, or nominate any candidate to, the Board (except as expressly provided by this Agreement), (iii) nominate any candidate to the board of directors of any Competitor unless such candidate is independent from SRS and SRS takes
all appropriate acts to prevent such third party from providing any competitively sensitive information to SRS, (iv) seek the removal of any member of the Board or (v) make any proposal at any annual or special meeting of the
Company’s stockholders; 

  
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 (f) take any public action in support of or make any public proposal or request that constitutes
or relates to: (i) advising, controlling, changing or influencing the Board or management of the Company, including any plans or proposals to change the number or term of directors or to fill any vacancies on the Board, (ii) any material
change in the capitalization, stock repurchase programs and practices, capital allocation programs and practices or dividend policy of the Company, (iii) any other material change in the Company’s management, business or corporate
structure, (iv) seeking to have the Company waive or make amendments or modifications to the Company’s certificate of incorporation or bylaws, or other actions that may impede or facilitate the acquisition of control of the Company by any
Person, (v) causing a class of securities of the Company to be delisted from, or to cease to be authorized to be quoted on, any securities exchange or (vi) causing a class of securities of the Company to become eligible for termination of
registration pursuant to Section 12(g)(4) of the Exchange Act; 
 (g) make any public disclosure, announcement or statement regarding
any intent, purpose, plan or proposal with respect to the Board, the Company, its management, policies or affairs, any of its securities or assets or this Agreement that is inconsistent with the provisions of this Agreement; 

(h) form or join in a partnership, limited partnership, syndicate or other group, including a “group” as defined under
Section 13(d) of the Exchange Act, with respect to the Voting Securities (for the avoidance of doubt, excluding any group composed solely of SRS and its Affiliates); 

(i) make any request for stockholder list materials or other books and records of the Company under Section 220 of the Delaware General
Corporation Law or otherwise; 
 (j) institute, solicit or join, as a party, any litigation, arbitration or other proceeding (including any
derivative action) against the Company or any of its future, current or former directors or officers or employees (provided, that nothing shall prevent SRS from bringing litigation to enforce the provisions of this Agreement or being a party to a
class action instituted by a Third Party without the assistance or encouragement of SRS); 
 (k) enter into any discussions, negotiations,
agreements, or understandings with any Third Party with respect to any of the foregoing, or assist, advise, knowingly encourage or knowingly influence any Third Party to take any action or make any statement with respect to any of the foregoing, or
otherwise take or cause any action or make any statement inconsistent with any of the foregoing; or 
 (l) contest the validity of, or
publicly request any waiver of, the obligations set forth in this Section 2. 
 Notwithstanding anything in this Agreement to the contrary,
(i) during the six-month period following the expiration of the Standstill Period, SRS may not acquire Beneficial Ownership (including any rights or options to own or acquire any Voting Securities (whether such right or option is exercisable
immediately or only after the passage of time or upon the satisfaction of one or more conditions)) of more than 25,000,000 (as adjusted for stock splits, stock dividends, reverse stock splits and similar transactions) of the Company’s issued
and outstanding Voting 

  
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Securities and (ii) the foregoing provisions of this Section 2 shall not be deemed to (A) prohibit SRS or its directors, officers, partners, employees, members or agents (acting in
such capacity) from communicating privately with the Company’s directors or officers so long as such communications are not intended to, and would not reasonably be expected to, require any public disclosure of such communications or
(B) restrict any New Director in the exercise of his fiduciary duties to the Company and all of its stockholders. 
 3. Voting
Commitment. SRS agrees that it will cause all Voting Securities Beneficially Owned by SRS as of the record date for the 2016 Annual Meeting (including, for the avoidance of doubt, Beneficial Ownership of any Voting Securities acquired after the
date of this Agreement) to be present for quorum purposes and voted at such meetings (i) in favor of the Company’s nominees, (ii) against the election of any directors that have not been nominated by the Company, (iii) in
accordance with the Board’s recommendation with respect to auditor ratification proposals and (iv) in accordance with the Board’s recommendation with respect to any other proposal presented at such meeting, provided however, that in
the case of this clause (iv), SRS shall be permitted to vote in its sole discretion with respect to any proposal (A) related to an Extraordinary Transaction, (B) which has received an “against” recommendation from Institutional
Shareholder Services, (C) related to the implementation of takeover defenses or adversely affecting the rights of stockholders, or (D) related to new or amended incentive compensation plans. 

4. Ownership Obligation. If, prior to February 20, 2016, a Proxy Contest shall have been commenced, SRS shall take all actions
necessary to promptly (and in any event prior to the record date for voting in connection with the 2016 Annual Meeting) acquire Beneficial Ownership of Common Stock equal to no less than SRS’s Total Net Long Position at the time SRS is first
notified of such Proxy Contest and maintain such Beneficial Ownership through the record date for voting in connection with the 2016 Annual Meeting. SRS’s obligation to acquire such Beneficial Ownership pursuant to this Section 4 shall be
subject to the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended; provided, that SRS shall use reasonable best efforts to cause such waiting period to expire or
terminate, including by requesting early termination of such waiting period. For purposes of this Agreement, a “Proxy Contest” shall mean the submission to the Company of a notice of any Third Party’s intent to nominate a
person for election at the 2016 Annual Meeting as a director of the Company pursuant to the Company’s bylaws. The Company shall promptly notify SRS upon the commencement of any Proxy Contest. 

5. Minimum Ownership. 
 (a)
If at any time following the execution and delivery of this Agreement (other than as a result of buybacks or repurchases by or on behalf of the Company), (a) SRS’s aggregate Beneficial Ownership of the Common Stock is less than 7.5% of the
then outstanding Common Stock or (b) SRS’s Total Net Long Position in the Common Stock is less than 15% of the then outstanding Common Stock ((a) and (b) collectively, “Minimum Ownership Level 1”), then (i) the
Company shall not be obligated to appoint the Subsequent New Director if not appointed prior to such time, (ii) SRS shall no longer be entitled to recommend for appointment to the Board any Replacement for the Subsequent New Director and
(iii) the Company shall not be obligated to nominate the Subsequent New Director or any Replacement thereof for election to the Board at any meeting of stockholders at which directors are to be elected occurring after such time. 

  
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 (b) If at any time following the execution and delivery of this Agreement (other than as a result
of buybacks or repurchases by or on behalf of the Company), (a) SRS’s aggregate Beneficial Ownership of the Common Stock is less than 7.5% of the then outstanding Common Stock or (b) SRS’s Total Net Long Position in the Common
Stock is less than 10% of the then outstanding Common Stock ((a) and (b) collectively, “Minimum Ownership Level 2”; and, together with Minimum Ownership Level 1, the “Minimum Ownership Levels”), then
(i) the Company shall not be obligated to appoint any New Director that has not been appointed prior to such time, (ii) SRS shall no longer be entitled to recommend for appointment to the Board any Replacement and (iii) the
Company shall not be obligated to nominate any New Director or any Replacement thereof for election to the Board at any meeting of stockholders at which directors are to be elected occurring after such time. 

(c) Prior to the appointment of any New Director to the Board, such New Director shall deliver to the Company an irrevocable resignation letter
pursuant to which such New Director shall resign from the Board and all applicable committees thereof if at any time SRS fails to maintain Minimum Ownership Level 1 (in the case of the Subsequent New Director or any Replacement thereof) or Minimum
Ownership Level 2 (in the case of the Initial New Director or any Replacement thereof). SRS shall promptly (and in any event within five (5) business days) inform the Company in writing if at any time SRS has failed to maintain the Minimum
Ownership Levels. 
 6. Non-Disparagement. Until the expiration of the Standstill Period, SRS and the Company agree not to (and will
cause any Persons acting on their behalf not to) make, or cause to be made (whether directly or indirectly), any public statement or any public announcement (including in any document filed with or furnished to the SEC or through the media), or any
statement made by a senior investment officer of SRS to any stockholder or investor of the other party or any analyst, in each case which constitutes an ad hominem attack on, or otherwise disparages, the other party’s past, present or
future directors, officers, partners, principals or employees. Nothing in this Section 6 shall be deemed to prevent either the Company or SRS from complying with its respective disclosure obligations under applicable law, legal process,
subpoena, law, the rules of any stock exchange, or legal requirement or as part of a response to a request for information from any governmental authority with jurisdiction over the party from whom information is sought. 

7. Public Announcements. The Company shall announce this Agreement by means of a press release in the form attached hereto as Exhibit
A (the “Press Release”). Neither the Company nor SRS shall make or cause to be made any public announcement or statement with respect to the subject of this Agreement that is contrary to the statements made in the Press Release,
except as required by law or the rules of any stock exchange or with the prior written consent of the other party. The Company acknowledges that SRS may file this Agreement as an exhibit to its Schedule 13D. The Company shall be given a reasonable
opportunity to review and comment on any Schedule 13D filing made by SRS with respect to this Agreement, and SRS shall give reasonable consideration to the comments of the Company. SRS acknowledges and agrees that the Company may file this Agreement
and file or furnish the Press Release with the SEC as exhibits to a Current Report on Form 8-K and other filings with the SEC. 

  
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 8. Confidentiality. 

(a) Each New Director shall be required to comply with the Company’s Code of Business Conduct and Ethics for Directors applicable to the
other members of the Board, including provisions relating to the confidentiality, disclosure and use of (including trading or influencing the actions of any Person based on) any non-public information entrusted to or obtained by such director by
reason of his or her position as a director of the Company (“Confidential Information”). 
 (b) Notwithstanding the
foregoing, the Initial New Director (or his Replacement if affiliated with SRS) may, if he wishes to do so, provide Confidential Information to SRS’s investment professionals (“SRS Investment Professionals”) solely to the
extent such SRS Investment Professionals need to know such information in connection with SRS’s investment in the Company; provided, however, that SRS (i) shall inform each SRS Investment Professional of the confidential nature of the
Confidential Information and (ii) shall cause each SRS Investment Professional not to disclose any Confidential Information to any Person other than SRS Investment Professionals in compliance with this Section 8(b). SRS shall be
responsible for the breach of this Section 8(b) by any of its directors, officers, employees, agents or other representatives. 
 9.
Securities Laws. SRS acknowledges that it is aware, and will advise each SRS Investment Professional who receives Confidential Information pursuant to Section 8(b), that United States securities laws prohibit any Person who has received
material, non-public information from purchasing or selling securities on the basis of such information or from communicating such information to any other Person under circumstances in which it is reasonably foreseeable that such Person may trade
securities on the basis of such information. SRS agrees that neither it nor its investment professionals will use or communicate any Confidential Information in violation of such laws. SRS maintains customary policies and procedures designed to
prevent unauthorized disclosure and use of material, non-public information. 
 10. Representations and Warranties of All Parties.
Each of the parties represents and warrants to the other party that: (a) such party has all requisite power and authority to execute and deliver this Agreement and to perform its obligations hereunder, (b) this Agreement has been duly and
validly authorized, executed and delivered by it and is a valid and binding obligation of such party, enforceable against such party in accordance with its terms (subject to applicable bankruptcy and similar laws relating to creditors’ rights
and to general equity principles), and (c) this Agreement will not result in a violation of any terms or conditions of any agreements to which such Person is a party or by which such party may otherwise be bound or of any law, rule, license,
regulation, judgment, order or decree governing or affecting such party. 
 11. Representations and Warranties of SRS. SRS represents
and warrants that, as of the date of this Agreement: (a) SRS collectively Beneficially Owns an aggregate of 9,500,000 shares of Common Stock, (b) SRS has a Synthetic Net Long Position in 10,500,000 shares of

  
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Common Stock (with a Total Net Long Position in 20,000,000 shares of Common Stock), and (c) SRS has not provided or agreed to provide, and will not provide, any compensation in cash or
otherwise to any New Director in connection with such New Director’s nomination and appointment to, or service on, the Board (other than any New Director’s regular compensation as an employee of SRS, as applicable). 

12. Certain Defined Terms. For purposes of this Agreement: 

(a) The terms “Affiliate” and “Associate” shall have the respective meanings set forth in Rule 12b-2
promulgated by the United States Securities and Exchange Commission (the “SEC”) under the Exchange Act. 
 (b)
“Beneficial Ownership” means ownership of Voting Securities in a manner which provides such owner with the right or ability to vote, cause to be voted or control or direct the voting of, such Voting Securities. 

(c) “Competitor” means eHi Car Services Limited, Enterprise Holdings, Inc., Europcar Groupe SA, Hertz Global Holdings Inc.,
Sixt SE and any of their respective Affiliates. 
 (d) “Person” shall mean any individual, corporation (including
not-for-profit), general or limited partnership, limited liability or unlimited liability company, joint venture, estate, trust, association, organization or other entity of any kind or nature. 

(e) “Synthetic Long Position” shall mean any transaction involving any option, warrant, convertible security, stock
appreciation right, or other security, contract right or derivative position or similar right (including any “swap” transaction with respect to any security, other than a broad based market basket or index), whether or not presently
exercisable, that has an exercise or conversion privilege or a settlement payment or mechanism at a price related to the value of the Voting Securities or a value determined in whole or in part with reference to, or derived in whole or in part from,
the value of the Voting Securities and that increases in value as the market price or value of the Voting Securities increases or that provides to the holder an opportunity, directly or indirectly, to profit or share in any profit derived from any
increase in the value of the Voting Securities, in each case regardless of whether (i) such derivative conveys any voting rights in such Voting Securities to such Person or any of such Person’s Affiliates, (ii) such derivative is
required to be, or capable of being, settled through delivery of such securities or (iii) such Person or any of such Person’s Affiliates may have entered into other transactions that hedge the economic effect of such derivative. 

(f) “Synthetic Short Position” shall mean any transaction involving any option, warrant, convertible security, stock
appreciation right, or other security, contract right or derivative position or similar right (including any “swap” transaction with respect to any security, other than a broad based market basket or index), whether or not presently
exercisable, that has an exercise or conversion privilege or a settlement payment or mechanism at a price related to the value of the Voting Securities or a value determined in whole or in part with reference to, or derived in whole or in part from,
the value of the Voting Securities and that increases in value as the market price or value of the Voting Securities decreases or that provides to the holder an opportunity, directly or indirectly, to profit or share in any profit derived from

  
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any decrease in the value of the Voting Securities, in each case regardless of whether (i) such derivative conveys any voting rights in such Voting Securities to such Person or any of such
Person’s Affiliates, (ii) such derivative is required to be, or capable of being, settled through delivery of such securities or (iii) such Person or any of such Person’s Affiliates may have entered into other transactions that
hedge the economic effect of such derivative. 
 (g) “Synthetic Net Long Position” shall mean the excess, if any, of a
Person’s Synthetic Long Position over such Person’s Synthetic Short Position. 
 (h) “Third Party” shall mean any
Person other than the Company, SRS and their respective Affiliates and representatives. 
 (i) “Total Net Long Position”
shall mean, without duplication, the sum of a Person’s (i) Beneficial Ownership of Voting Securities and (ii) Synthetic Net Long Position in Voting Securities. 

(j) “Voting Securities” shall mean the Common Stock and any other securities of the Company entitled to vote in the election
of directors. 
 13. Governing Law; Jurisdiction. This Agreement shall be governed by and construed and enforced in accordance with
the laws of the State of Delaware without reference to the conflict of laws principles thereof. Each of the parties hereto irrevocably agrees that any legal action or proceeding with respect to this Agreement and the rights and obligations arising
hereunder, or for recognition and enforcement of any judgment in respect of this Agreement and the rights and obligations arising hereunder brought by the other party hereto or its successors or assigns, shall be brought and determined exclusively
in the Delaware Court of Chancery and any state appellate court therefrom within the State of Delaware (or, if the Delaware Court of Chancery declines to accept jurisdiction over a particular matter, any federal court within the State of Delaware).
Each of the parties hereto hereby irrevocably submits with regard to any such action or proceeding for itself and in respect of its property, generally and unconditionally, to the personal jurisdiction of the aforesaid courts and agrees that it will
not bring any action relating to this Agreement in any court other than the aforesaid courts. Each of the parties hereto hereby irrevocably waives, and agrees not to assert in any action or proceeding with respect to this Agreement, (a) any
claim that it is not personally subject to the jurisdiction of the above-named courts for any reason, (b) any claim that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such
courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and (c) to the fullest extent permitted by applicable legal requirements, any claim that
(i) the suit, action or proceeding in such court is brought in an inconvenient forum, (ii) the venue of such suit, action or proceeding is improper or (iii) this Agreement, or the subject matter hereof, may not be enforced in or by
such courts. 
 14. No Waiver. Any waiver by any party of a breach of any provision of this Agreement shall not operate as or be
construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Agreement. The failure of a party to insist upon strict adherence to any term of this Agreement on one or more occasions shall not be
considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement. 

  
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 15. Entire Agreement. This Agreement contains the entire understanding of the parties with
respect to the subject matter hereof and may be amended only by an agreement in writing executed by the parties hereto. 
 16.
Notices. All notices, consents, requests, instructions, approvals and other communications provided for herein and all legal process in regard hereto shall be in writing and shall be deemed validly given, made or served, if (a) given by
email, when such email is sent to the email address set forth below during normal business hours and the appropriate confirmation is received or (b) if given by any other means, when actually received during normal business hours at the address
specified in this subsection: 
 if to the Company: 

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

Attention:         Michael Tucker 

Email:               michael.tucker@avisbudget.com 

with a copy (which shall not constitute notice) to: 

Kirkland & Ellis LLP 

601 Lexington Avenue 
 New York,
NY 10022 
 Attention:         Daniel E. Wolf 

                       
  Michael P. Brueck 
 Email:              daniel.wolf@kirkland.com

                       
  michael.brueck@kirkland.com 
 if to SRS: 

SRS Investment Management, LLC 

1 Bryant Park, 39th Floor 
 New
York, NY 10036 
 Attention:         David Zales 

Email:               david.zales@srsfund.com 

with a copy (which shall not constitute notice) to: 

Schulte Roth & Zabel LLP 

919 Third Avenue 
 New York, New
York 10022 
 Attention:         Marc Weingarten and Eleazer Klein 

Email:               marc.weingarten@srz.com and eleazer.klein@srz.com

  
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 17. Severability. If any provision of this Agreement shall be held by any court of
competent jurisdiction to be illegal, void or unenforceable, such provision shall be of no force and effect, but the illegality or unenforceability of such provision shall have no effect upon the legality or enforceability of any other provision of
this Agreement. 
 18. Counterparts. This Agreement may be executed in two or more counterparts, which together shall constitute a
single agreement. 
 19. Successors and Assigns. This Agreement shall not be assignable by any of the parties to this Agreement. This
Agreement, however, shall be binding on successors of the parties hereto. 
 20. No Third Party Beneficiaries. This Agreement is
solely for the benefit of the parties hereto and is not enforceable by any other Persons. 
 21. Amendments. This Agreement may only
be amended pursuant to a written agreement executed by SRS and the Company. 
 22. Interpretation and Construction. Each of the
parties hereto acknowledges that it has been represented by counsel of its choice throughout all negotiations that have preceded the execution of this Agreement, and that it has executed the same with the advice of said independent counsel. Each
party and its counsel cooperated and participated in the drafting and preparation of this Agreement and the documents referred to herein, and any and all drafts relating thereto exchanged among the parties shall be deemed the work product of all of
the parties and may not be construed against any party by reason of its drafting or preparation. Accordingly, any rule of law or any legal decision that would require interpretation of any ambiguities in this Agreement against any party that drafted
or prepared it is of no application and is hereby expressly waived by each of the parties hereto, and any controversy over interpretations of this Agreement shall be decided without regards to events of drafting or preparation. The section headings
contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. The term “including” shall be deemed to mean “including without limitation” in all
instances. 
 [Signature Pages Follow] 

  
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 IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement, or caused the same to
be executed by its duly authorized representative as of the date first above written. 
  

			
	AVIS BUDGET GROUP, INC.
		
	By:	 	/s/ Ronald L. Nelson
		 	Name:  Ronald L. Nelson
		 	Title:    Chairman of the Board
	
	SRS INVESTMENT MANAGEMENT, LLC
		
	By:	 	/s/ David B. Zales
		 	Name:  David B. Zales
		 	Title:    General Counsel
	
	SRS PARTNERS US, LP
	
	 By: SRS Investment Management, LLC, its investment manager

		
	By:	 	/s/ David B. Zales
		 	Name:  David B. Zales
		 	Title:    General Counsel
	
	SRS PARTNERS MASTER FUND LP
	
	 By: SRS Investment Management, LLC, its investment manager

		
	By:	 	/s/ David B. Zales
		 	Name:  David B. Zales
		 	Title:    General Counsel

 [Signature Page to Cooperation Agreement] 

 
			
	SRS SPECIAL OPPORTUNITIES MASTER II, LP
	
	 By: SRS Investment Management, LLC, its investment manager

		
	By:	 	/s/ David B. Zales
		 	Name: David B. Zales
		 	Title:   General Counsel
	
	SRS LONG OPPORTUNITIES MASTER FUND, LP
	
	 By: SRS Investment Management, LLC, its investment manager

		
	By:	 	/s/ David B. Zales
		 	Name: David B. Zales
		 	Title:   General Counsel

 [Signature Page to Cooperation Agreement] 

 SCHEDULE A 

SRS Investment Management, LLC 
 SRS Partners US, LP 

SRS Partners Master Fund LP 
 SRS Special Opportunities Master II,
LP 
 SRS Long Opportunities Master Fund, LP 

 EXHIBIT A 

Press Release 
  

 
 AVIS BUDGET GROUP ANNOUNCES AGREEMENT 

WITH SRS INVESTMENT MANAGEMENT 

Company Also Increases Share Repurchase Authorization by $300 Million 

PARSIPPANY, N.J., January 25, 2016 — Avis Budget Group, Inc. (NASDAQ:CAR), a leading global provider of vehicle rental services, today
announced that it has entered into a cooperation agreement with SRS Investment Management, the Company’s largest stockholder for the last several years, under which Brian Choi, a designee of SRS, will be appointed to the Avis Budget Group Board
of Directors. Avis Budget Group also announced today that the Board has increased the Company’s share repurchase authorization by $300 million. 

Under the terms of the cooperation agreement, SRS will also be entitled to recommend an independent director not affiliated with SRS to be added to the Avis
Budget Group Board, subject to the Board’s reasonable approval. SRS has agreed to vote all of its shares in favor of the Company’s nominees at the 2016 annual meeting as well as other customary standstill and voting commitments. With the
addition of Mr. Choi, the Avis Budget Group Board will increase in size to twelve directors. The complete agreement between SRS and Avis Budget Group will be included in a Form 8-K to be filed with the Securities and Exchange Commission. 

“We are pleased to welcome Brian to the Board and are confident that the skills and expertise that he and the other new independent director will bring
to the Board will add valuable insight as we continue to execute on our strategy,” said Ronald L. Nelson, Avis Budget Group Executive Chairman. “SRS has maintained a constructive relationship with us for several years, sharing a consistent
view of where our industry is headed and a focus on our Company’s long-term growth opportunities.” 
 The increase in the Company’s share
repurchase authorization is the fourth since the Company launched its buyback program in August 2013. Through September 30, 2015, the Company bought back more than $625 million of stock under the program, including $277 million of stock
repurchased in the first nine months of 2015. As a result, in just over two years the Company reduced its outstanding shares by more than 13 million shares, or 12%. The remaining buyback authorization at September 30, 2015 was $258
million, and the Company continued to repurchase shares in the fourth quarter of 2015 and the first quarter of 2016. 
  

 “In light of our strong third quarter 2015 performance and expectation that our Adjusted EBITDA will be at
record levels in 2015, we are pleased to increase our share repurchase authorization,” said Larry D. De Shon, Avis Budget Group’s Chief Executive Officer. “We remain focused on allocating capital to the most attractive opportunities,
and this expansion of our share repurchase authorization underscores the continued confidence we have in the long-term prospects of our business as well as our commitment to returning capital to stockholders.” 

Karthik Sarma, Founder and Portfolio Manager of SRS, said, “Avis Budget Group has an integral role to play in the rapidly growing world of mobility
solutions. I believe this is an exciting time for SRS to strengthen our relationship with an industry leader that has a proven track record of delivering stockholder value. I am pleased to have reached this agreement as part of a constructive dialog
with the Company and I look forward to the continued success of Avis Budget Group.” 
 Under the stock repurchase program, the Company repurchases
shares from time to time in open market transactions, and may also repurchase shares in accelerated stock buyback programs, tender offers, privately negotiated transactions or by other means. Repurchases may also be made under a Rule 10b5-1 plan.
The timing and amount of repurchase transactions will be determined by the Company’s management based on its evaluation of market conditions, share price, legal requirements and other factors. The program may be suspended, modified or
discontinued at any time without prior notice. 
 Forward-Looking Statements 

Certain statements in this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform
Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking statements. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,”
“projects,” “estimates,” “plans,” “may increase,” “may fluctuate,” “will,” “should,” “would,” “may” and “could” or similar words or expressions are
generally forward-looking in nature and not historical facts. Any statements that refer to outlook, expectations or other characterizations of future events, circumstances or results, including all statements related to the cooperation agreement or
the timing or amount of future stock repurchases, are also forward-looking statements. Important risks, assumptions and other important factors that could cause future results to differ materially from those expressed in the forward-looking
statements are specified in Avis Budget Group’s Annual Report on Form 10-K for the year ended December 31, 2014, its Current Report on Form 8-K filed May 6, 2015 and its Quarterly Report on Form 10-Q for the period ended
September 30, 2015, included under headings such as “Forward-Looking Statements”, “Risk Factors” and “Management’s Discussion and Analysis of Financial 

 
Condition and Results of Operations” and in other filings and furnishings made by the Company with the Securities and Exchange Commission from time to time. The Company undertakes no
obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events. 

About Avis Budget Group 
 Avis Budget Group, Inc. is a
leading global provider of vehicle rental services, both through its Avis and Budget brands, which have more than 10,000 rental locations in approximately 175 countries around the world, and through its Zipcar brand, which is the world’s
leading car sharing network, with more than 950,000 members. Avis Budget Group operates most of its car rental offices in North America, Europe and Australia directly, and operates primarily through licensees in other parts of the world. Avis Budget
Group has approximately 30,000 employees and is headquartered in Parsippany, N.J. More information is available at www.avisbudgetgroup.com. 
  

					
	Contacts:	  	Investor Contact	  	Media Contact
		  	Neal Goldner	  	John Barrows
		  	(973) 496-5086	  	(973) 496-7865
		  	IR@avisbudget.com	  	PR@avisbudget.comAVALANCHE
INTERNATIONAL CORP.

SECURED
PROMISSORY NOTE

 

 

	Original
    Principal Amount: US $125,000	Las
    Vegas, Nevada
	Consideration
    Paid at Close: US $100,000	December
    2, 2015

 

This
Secured Promissory Note (the “Note”), dated as of December 2, 2015 is made by Avalanche International Corp., a Nevada
corporation, (“Maker”), in favor of Lori Livingston (“Holder”).

 

For
good and valuable consideration, the Maker hereby makes and delivers this Note in favor of Holder, and hereby agrees as follows:

 

1.                  
Principal Obligation and Interest; Due Date; Original Issue Discount. For value received, Maker promises to
pay to Holder or her assigns, at such place as Holder may designate in writing, in currently available funds of the United States,
the principal sum of One Hundred Twenty-five Thousand Dollars ($125,000). Except in the event of a default, Maker’s
obligation under this Note shall not accrue interest. The Original Issue Discount (“OID”) under this Note is $25,000.
Promptly upon the parties’ execution of this Note, Holder shall wire $100,000 (representing the amount of the Note, less
the OID) to the Maker as specified in Exhibit A. All sums due under this Note shall be paid in full on or before sixty
(60) days from the date of this Note (the “Due Date”).

 

2.                  
Warrant to be Issued as Additional Consideration. As additional consideration to Holder, the Maker shall issue to the
Holder a warrant to purchase up to 100,000 shares of the Company’s common stock at a price of $0.01 per share, exercisable
for a period of one year. Shares issuable under the Warrant shall have “piggy-back” registration rights as set forth
in the Warrant. The Warrant shall have the form and substance set forth in Exhibit B.

 

3.
Payment Terms; Use of Proceeds. The principal amount of this Note shall be due and payable, in whole or in several
parts, as applicable, upon the Maker’s receipt of any and all additional investments in the Maker subsequent to the date
of this Note, whether effected through the sale of capital stock of the Maker or by the Maker’s issuance of additional debt.
The net proceeds of all such investments in the Maker, when received by the Maker, shall be paid to Holder within twenty-four
(24) hours after the funds from such investments have cleared and become available to the Maker, until the principal amount of
this Note is paid in full. All funds currently held in an attorney escrow and intended for investment in the Maker shall not,
when so invested, be subject to this provision.

 

Maker
shall have the right to prepay all or any part of the principal under this Note without penalty.

 

Maker
is the Holder of a certain Secured Promissory Note dated July 28, 2015 and issued from JS Technologies, Inc. to Maker (the “JS
Note”). All proceeds of this Note shall be used by the Maker to fund an advance to JS Technologies, Inc. under the JS Note,
less any origination fee applicable thereunder.

 

4.
Grant of Security Interest. As collateral security for the prompt, complete, and timely satisfaction of all indebtedness,
liabilities, duties, and obligations of Maker to Holder evidenced by or arising under this Note, and all attorneys’ fees,
costs and expenses incurred by Holder in the collection or enforcement of the same (collectively, the “Obligations”),
Maker hereby pledges, assigns and grants to Holder a continuing security interest and lien in all of Maker’s right, title
and interest in and to that certain Secured Promissory Note dated July 28, 2015 and issued from JS Technologies, Inc. to Maker,
a true and correct copy of which is attached hereto as Exhibit C (the “Collateral”). As applicable,
the terms of this Note with respect to Maker’s granting of a security interest in the Collateral to Holder shall be deemed
to be a security agreement under applicable provisions of the Uniform Commercial Code (“UCC”), with Maker as
the debtor and Holder as the secured party.

    	 	 	 

    	 	 	 

    

 

5.
Perfection. Upon the execution and delivery of this Note, Maker authorizes Holder to file such financing statements
and other documents in such offices as shall be necessary or as Holder may reasonably deem necessary to perfect and establish
the priority of the liens granted by this Note, including any amendments, modifications, extensions or renewals thereof. Maker
agrees, upon Holder’s request, to take all such actions as shall be necessary or as Holder may reasonably request to perfect
and establish the priority of the liens granted by this Note, including any amendments, modifications, extensions or renewals
thereof.

 

6.
Representations and Warranties of Maker. Maker hereby represents and warrants the following to Holder:

 

a.                  
Maker and those executing this Note on its behalf have the full right, power, and authority to execute, deliver and perform the
Obligations under this Note, which are not prohibited or restricted under the articles of incorporation or bylaws of Maker. This
Note has been duly executed and delivered by an authorized officer of Maker and constitutes a valid and legally binding obligation
of Maker enforceable in accordance with its terms.

 

b.                  
The execution of this Note and Maker’s compliance with the terms, conditions and provisions hereof does not conflict with
or violate any provision of any agreement, contract, lease, deed of trust, indenture, or instrument to which Maker is a party
or by which Maker is bound, or constitute a default thereunder or result in the imposition of any lien, charge, encumbrance, claim
or security interest of any nature whatsoever upon any of the Collateral.

 

c.                  
The security interest granted hereby in and to the Collateral constitutes a present, valid, binding and enforceable security interest
as collateral security for the Obligations, and, except as to leased equipment or purchase-money encumbrances existing as of the
date of this Note as expressly disclosed to Holder in writing, such interests, upon perfection, will be senior and prior to any
liens, encumbrances, charges, title defects, interests and rights of any others with respect to such Collateral.

 

7.
 Covenants of Maker. For so long as any Obligations remain outstanding:

 

a.                  
Maker shall not sell, assign or transfer any of the Collateral, or any part thereof or interest therein; 

 

b.                  
Maker shall pay or cause to be paid promptly when due all taxes and assessments on the Collateral; and 

 

c.                  
Maker shall keep Holder apprised, in writing, as to the current location of the Collateral, providing Holder with current information
with respect to the Collateral so the Holder may perfect and maintain the priority of its security interest therein. 

 

8.
Use of Collateral. For so long as no event of default shall have occurred and be continuing under this Note, Maker
shall be entitled to use and possess the Collateral and to exercise its rights, title and interest in all contracts, agreements,
and licenses subject to the rights, remedies, powers and privileges of Holder under this Note and to such use, possession or exercise
not otherwise constituting an event of default. Notwithstanding anything herein to the contrary, Maker shall remain liable to
perform its duties and obligations under the contracts and agreements included in the Collateral in accordance with their respective
terms to the same extent as if this Note had not been executed and delivered; the exercise by Holder of any right, remedy, power
or privilege in respect of this Note shall not release the Maker from any of its duties and obligations under such contracts and
agreements; and Holder shall have no duty, obligation or liability under such contracts and agreements included in the Collateral
by reason of this Note, nor shall Holder be obligated to perform any of the duties or obligations of Maker under any such contract
or agreement or to take any action to collect or enforce any claim (for payment) under any such contract or agreement.

    	 	2	 

    	 	 	 

    

 

9.
Defaults. The following shall be events of default under this Note:

 

a.                  
Maker’s failure to remit any payment under this Note on before the date due, if such failure is not cured in full within
five (5) days of written notice of default;

 

b.                  
Maker’s failure to make final payment of all sums due and owing under this Note on or before the Due Date;

 

c.                  
Maker’s failure to perform or breach of any non-monetary obligation or covenant set forth in this Note or in any other written
agreement between Maker and Holder if such failure is not cured in full within ten (10) days following delivery of written notice
thereof from Holder to Maker;

 

d.                  
If Maker is dissolved, whether pursuant to any applicable articles of incorporation or bylaws, and/or any applicable laws, or
otherwise;

 

e.                  
The commencement by Maker of any action or proceeding which affects the Collateral or title thereto or the interest of Holder
therein, including, but not limited to eminent domain, insolvency, code enforcement or arrangements or proceedings involving a
bankrupt or decedent;

 

f.                   
The entry of a decree or order by a court having jurisdiction in the premises adjudging the Maker bankrupt or insolvent, or approving
as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Maker under
the federal Bankruptcy Code or any other applicable federal or state law, or appointing a receiver, liquidator, assignee or trustee
of the Maker, or any substantial part if its property, or ordering the winding up or liquidation of its affairs, and the continuance
of any such decree or order unstayed and in effect for a period of twenty (20) days; 

 

g.                  
Maker’s institution of proceedings to be adjudicated a bankrupt or insolvent, or the consent by it to the institution of
bankruptcy or insolvency proceedings against it, or its filing of a petition or answer or consent seeking reorganization or relief
under the federal Bankruptcy Code or any other applicable federal or state law, or its consent to the filing of any such petition
or to the appointment of a receiver, liquidator, assignee or trustee of the company, or of any substantial part of its property,
or its making of an assignment for the benefit of creditors or the admission by it in writing of its inability to pay its debts
generally as they become due, or the taking of corporate action by the Maker in furtherance of any such action; or

 

h.                  
The Maker’s common stock is suspended or delisted for trading on the Over the Counter Bulletin Board market or such other
market on which such common stock is listed or quoted.

    	 	3	 

    	 	 	 

    

 

10.Rights
and Remedies of Holder. Upon the occurrence of an event of default by Maker under this Note, the principal amount due
under this Note shall immediately increase to 120% of the principal balance immediately prior to the occurrence of the event of
default (the “Default Effect”). In addition, upon the occurrence of an event of default by Maker under this Note,
interest shall accrue on all sums due under this Note, as adjusted to include the Default Effect, at the rate of twenty-nine percent
(29%) per annum (the “Default Rate”). The Default Effect, and the accrual of interest at the Default Rate, shall automatically
apply upon the occurrence of an event of default without the need for any party to give any notice or take any other action. In
addition to the Default Effect, the accrual of interest at the Default Rate, and all other rights and remedies at law or in equity,
Holder may also exercise any one or more of the following rights and remedies:

 

a.                  
Pursue and enforce all of the rights and remedies provided to a secured party with respect to the Collateral under the Uniform
Commercial Code. 

 

b.                  
Make such appearance, disburse such sums, and take such action as Holder deems necessary, in its sole discretion, to protect Holder’s
interest, including but not limited to the disbursement of attorneys’ fees. Any amounts disbursed by Holder pursuant to
this Section shall become additional indebtedness of the Maker secured by the Collateral and shall be immediately due and payable.
Nothing contained in this Section shall require Holder to incur any expense or take any action.

 

c.                  
Require Maker to assemble the Collateral and make it available to the Maker at the place to be designated by the Holder which
is reasonably convenient to both parties. The Holder may sell all or any part of the Collateral as a whole or in part either by
public auction, private sale, or other method of disposition. The Holder may bid at any public sale on all or any portion of the
Collateral. Unless the Collateral threatens to decline speedily in value, Holder shall give Maker reasonable notice of the time
and place of any public sale or of the time after which any private sale or other disposition of the Collateral is to be made,
and notice given at least 10 days before the time of the sale or other disposition shall be conclusively presumed to be reasonable.

 

d.                  
Pursue any other rights or remedies available to Holder at law or in equity.

 

11.Full
Recourse. The liability of Maker for the Obligations shall not be limited to the Collateral, and Maker shall have full
liability therefor beyond the Collateral.

 

12.Assignability;
Lost Stolen of Mutilated Note. The Maker may not assign this Note. This Note will be binding upon the Maker and its successors
and will inure to the benefit of the Holder and her successors and assigns and may be assigned by the Holder to anyone of her
choosing without Maker’s approval. Upon receipt by the Maker of evidence reasonably satisfactory to the Maker of the loss,
theft, destruction or mutilation of this Note, and, in the case of loss, theft or destruction, of any indemnification undertaking
by the Holder to the Maker in customary form and, in the case of mutilation, upon surrender and cancellation of this Note, the
Maker shall execute and deliver to the Holder a new Note representing the outstanding principal amount due.

 

    	 	4	 

    	 	 	 

    

13.
Representation of Counsel. Holder acknowledges that she has consulted with or has had the opportunity to consult
with Holder’s legal counsel prior to executing this Note. This Note has been freely negotiated by Maker and Holder and any
rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in
the interpretation of this Note.

 

14.
Choice of Laws; Actions. This Note shall be constructed and construed in accordance with the internal substantive
laws of the State of Nevada, without regard to the choice of law principles of said State. Maker acknowledges that this Note has
been negotiated in Clark County, Nevada. Accordingly, the exclusive venue of any action, suit, counterclaim or cross claim arising
under, out of, or in connection with this Note shall be the state or federal courts in Clark County, Nevada. Maker hereby consents
to the personal jurisdiction of any court of competent subject matter jurisdiction sitting in Clark County, Nevada.

 

15.
Usury Savings Clause. Maker expressly agrees and acknowledges that Maker and Holder intend and agree that
this Note shall not be subject to the usury laws of any state other than the State of Nevada. Notwithstanding anything contained
in this Note to the contrary, if collection from Maker of interest at the rate set forth herein would be contrary to applicable
laws of such State, then the applicable interest rate upon default shall be the highest interest rate that may be collected from
Maker under applicable laws at such time.

 

16.
Costs of Collection. Should the indebtedness represented by this Note, or any part hereof, be collected at law,
in equity, or in any bankruptcy, receivership or other court proceeding, or this Note be placed in the hands of any attorney for
collection after default, Maker agrees to pay, in addition to the principal and interest due hereon, all reasonable attorneys’
fees, plus all other costs and expenses of collection and enforcement, including any fees incurred in connection with such proceedings
or collection of the Note and/or enforcement of Holder’s rights.

 

17.
Miscellaneous.

 

a.                  
This Note shall be binding upon Maker and shall inure to the benefit of Holder and its successors, assigns, heirs, and legal representatives.

 

b.                  
Any failure or delay by Holder to insist upon the strict performance of any term, condition, covenant or agreement of this Note,
or to exercise any right, power or remedy hereunder shall not constitute a waiver of any such term, condition, covenant, agreement,
right, power or remedy.

 

c.                  
Any provision of this Note that is unenforceable shall be severed from this Note to the extent reasonably possible without invalidating
or affecting the intent, validity or enforceability of any other provision of this Note.

 

d.                  
This Note may not be modified or amended in any respect except in a writing executed by the party to be charged. 

 

e.                  
Neither party may assign this Note without the express written consent of the other party.

 

    	 	5	 

    	 	 	 

    

f.                   
Time is of the essence. 

 

18.Notices.
All notices required to be given under this Note shall be given at the following address, which may be changed by the applicable
party on five (5) business days advance written notice:

 

To
Maker:Avalanche International, Corp.

5940
S. Rainbow Avenue

Las
Vegas, NV 89118

Attn:
Rachel Boulds, CFO

Email:rachel@AvalancheInternationalCorp.com

 

To
Holder:Lori Livingston

512
SE Salmon

Portland,
OR 97214

Attn:
Lori Livingston

Email:
Lori@transferonline.com

 

Notices
may be transmitted by personal delivery or by a recognized overnight courier with confirmation of delivery or by e-mail, and shall
be deemed given upon receipt by the Party to whom they are addressed.

 

19.Waiver
of Certain Formalities. All parties to this Note hereby waive presentment, dishonor, notice of dishonor and protest. All
parties hereto consent to, and Holder is hereby expressly authorized to make, without notice, any and all renewals, extensions,
modifications or waivers of the time for or the terms of payment of any sum or sums due hereunder, or under any documents or instruments
relating to or securing this Note, or of the performance of any covenants, conditions or agreements hereof or thereof or the taking.
Any such action taken by Holder shall not discharge the liability of any party to this Note.

 

IN
WITNESS WHEREOF, this Note has been executed effective the date and place first written above.

 

	HOLDER:	MAKER:

         

	 

         

        By:
        /s/ Lori Livingston

        Name:
        Lori Livingston

         

         

         

         
	AVALANCHE
    INTERNATIONAL, CORP.  

    By: /s/ Philip E. Mansour

    Name: Philip E. Mansour 

    Title: President and Chief Executive Officer  

 

 

    	 	6	 

    	 	 	 

    

 

Exhibit
A – Wire Instructions

 

Wire
Routing Transit Number: 121201694

SWIFT
Code: USBKUS44IMT

Bank
Name: US BANK

City,
State: Las Vegas, NV

Account
Number: 153 756 033 657

 

Title
of Account:

Avalanche
International, Corp.

5940
S. Rainbow Blvd.

Las
Vegas, NV 89118

    	 	7	 

    	 	 	 

    

Exhibit
B – Warrant

  

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR REGISTERED
OR QUALIFIED UNDER ANY STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS SUCH
SALE, TRANSFER, PLEDGE OR HYPOTHECATION IS IN ACCORDANCE WITH SUCH ACT AND APPLICABLE STATE SECURITIES LAWS.

  

No.
of Shares of Common Stock: 100,000

 

WARRANT

to
Purchase Common Stock of

Avalanche
International Corp.

a
Nevada Corporation

This
Warrant certifies that Lori Livingston (“Purchaser”), is entitled to purchase from Avalanche International Corp.,
a Nevada corporation (the “Company”), one hundred thousand (100,000) shares of Common Stock (or any portion thereof)
at an exercise price of $0.01 per share of Common Stock, for a period of one (1) year from the date hereof, all on the terms and
conditions hereinafter provided.

Section
1. Certain Definitions. As used in this Warrant, unless the context otherwise requires: “Articles” shall
mean the Articles of Incorporation of the Company, as in effect from time to time. “Common Stock” shall mean
the Company’s authorized common stock, no par value per share.

“Exercise
Price” shall mean the exercise price per share of Common Stock set forth above, as adjusted from time to time pursuant
to Section 4 hereof.

“Securities
Act” shall mean the Securities Act of 1933, as amended.

“Warrant”
shall mean this Warrant and all additional or new warrants issued upon division or combination of, or in substitution for, this
Warrant. All such additional or new warrants shall at all times be identical as to terms and conditions and date, except as to
the number of shares of Common Stock for which they may be exercised.

“Warrant
Stock” shall mean the shares of Common Stock purchasable by the holder of this Warrant upon the exercise of such Warrant.

“Warrantholder”
shall mean the Purchaser, as the initial holder of this Warrant, and its nominees, successors or assigns, including any subsequent
holder of this Warrant to whom it has been legally transferred.

Section
2. Exercise of Warrant.

(a)   
At any time during the one (1) year following the date hereof, the Purchaser may at any time and from time to time exercise this
Warrant, in whole or in part.

(b)  
(i) The Warrantholder shall exercise this Warrant by means of delivering to the Company at its office identified in Section 14
hereof (i) a written notice of exercise, including the number of shares of Warrant Stock to be delivered pursuant to such exercise,
(ii) this Warrant and (iii) payment equal to the Exercise Price in accordance with Section 2(b)(ii). In the event that any exercise
shall not be for all shares of Warrant Stock purchasable hereunder, the Company shall deliver to the Warrantholder a new Warrant
registered in the name of the Warrantholder, of like tenor to this Warrant and for the remaining shares of Warrant Stock purchasable
hereunder, within ten (10) days of any such exercise. Such notice of exercise shall be in the Subscription Form set out at the
end of this Warrant.

    	 	8	 

    	 	 	 

    

  

(ii)
The Warrantholder may elect to pay the Exercise Price to the Company either by cash, certified check or wire transfer.

(c)   
Upon exercise of this Warrant and delivery of the Subscription Form with proper payment relating thereto, the Company shall cause
to be executed and delivered to the Warrantholder a certificate or certificates representing the aggregate number of fully-paid
and nonassessable shares of Common Stock issuable upon such exercise.

(d)  
The stock certificate or certificates for Warrant Stock to be delivered in accordance with this Section 2 shall be in such denominations
as may be specified in said notice of exercise and shall be registered in the name of the Warrantholder or such other name or
names as shall be designated in said notice. Such certificate or certificates shall be deemed to have been issued and the Warrantholder
or any other person so designated to be named therein shall be deemed to have become the holder of record of such shares, including
to the extent permitted by law the right to vote such shares or to consent or to receive notice as stockholders, as of the time
said notice is delivered to the Company as aforesaid.

(e)   
The Company shall pay all expenses payable in connection with the preparation, issue and delivery of stock certificates under
this Section 2, including any transfer taxes resulting from the exercise of the Warrant and the issuance of Warrant Stock hereunder.

(f)   
All shares of Warrant Stock issuable upon the exercise of this Warrant in accordance with the terms hereof shall be validly issued,
fully paid and nonassessable, and free from all liens and other encumbrances thereon, other than liens or other encumbrances created
by the Warrantholder.

(g)   
In no event shall any fractional share of Common Stock of the Company be issued upon any exercise of this Warrant. If, upon any
exercise of this Warrant, the Warrantholder would, except as provided in this paragraph, be entitled to receive a fractional share
of Common Stock, then the Company shall deliver in cash to such holder an amount equal to such fractional interest.

Section
3. Piggyback Registration Rights. The Company agrees that if, at any time prior to the expiration date of this Warrant,
the Company shall authorize the filing of a registration statement under the Securities Act (other than a registration statement
on Form S-8, Form S-4 or any other form that does not include substantially the same information as would be required in a form
for the general registration of securities) in connection with the proposed offer of any of its securities by it or any of its
stockholders, the Company shall cause such registration statement to cover the shares of Common Stock of the Company issuable
to the Warrantholder upon exercise of this Warrant. The registration rights granted under this provision shall be subject to the
right of the Company, or its underwriters, to reduce the inclusion of such shares in light of market conditions or comment from
the Securities and Exchange Commission.

 

Section
4. Adjustment of Exercise Price and Warrant Stock.

(a)   
If, at any time prior to the Expiration Date, the number of outstanding shares of Common Stock is (i) increased by a stock dividend
payable in shares of Common Stock or by a subdivision or split- up of shares of Common Stock, or (ii) decreased by a combination
of shares of Common Stock, then, following the record date fixed for the determination of holders of Common Stock entitled to
receive the benefits of such stock dividend, subdivision, split-up, or combination, the Exercise Price shall be adjusted to a
new amount equal to the product of (I) the Exercise Price in effect on such record date and (II) the quotient obtained by dividing
(x) the number of shares of Common Stock outstanding on such record date (without giving effect to the event referred to in the
foregoing clause (i) or (ii)), by (y) the number of shares of Common Stock which would be outstanding immediately after the event
referred to in the foregoing clause (i) or (ii), if such event had occurred immediately following such record date.

(b)
Upon each adjustment of the Exercise Price as provided in Section 4 (a), the Warrantholder shall thereafter be entitled to subscribe
for and purchase, at the Exercise Price resulting from such adjustment, the number of shares of Warrant Stock equal to the product
of (i) the number of shares of Warrant Stock existing prior to such adjustment and (ii) the quotient obtained by dividing (I)
the Exercise Price existing prior to such adjustment by (II) the new Exercise Price resulting from such adjustment.

    	 	9	 

    	 	 	 

    

 

(c)   
If, at any time prior to the Expiration Date, there occurs an event which would cause the automatic conversion (“Automatic
Conversion”) of the Warrant Stock into shares of the Company’s common stock (“Common Stock”) in accordance
with the Articles, then any Warrant shall thereafter be exercisable, prior to the Expiration Date, into the number of shares of
Common Stock into which the Warrant Stock would have been convertible pursuant to the Charter if the Automatic Conversion had
not taken place.

(d)    
Adjustment of Exercise Price for Certain Dilutive Issuances. If, at any time prior to the expiration date of this Warrant,
the Company issues or sells any Warrant to purchase Common Stock of the Company at an exercise price per share less than the Exercise
Price in effect on the date of such issuance or sale (a “Dilutive Issuance”), then immediately upon the Dilutive Issuance,
the Exercise Price hereunder will be reduced to equal the exercise price specified in the Warrant issued by the Company in such
Dilutive Issuance.

Section
5. Division and Combination. This Warrant may be divided or combined with  other Warrants upon presentation at the aforesaid
office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued,
signed by the Warrantholder or its agent or attorney. The Company shall pay all expenses in connection with the preparation, issue
and delivery of Warrants under this Section 5, including any transfer taxes resulting from the division or combination hereunder.
The Company agrees to maintain at its aforesaid office books for the registration of the Warrants.

Section
6. Reclassification, Etc. In case of any reclassification or change of the outstanding Common of the Company (other than
as a result of a subdivision, combination or stock dividend), or in case of any consolidation of the Company with, or merger of
the Company into, another corporation or other business organization (other than a consolidation or merger in which the Company
is the continuing corporation and which does not result in any reclassification or change of the outstanding Common Stock of the
Company) at any time prior to the Expiration Date, then, as a condition of such reclassification, reorganization, change, consolidation
or merger, lawful provision shall be made, and duly executed documents evidencing the same from the Company or its successor shall
be delivered to the Warrantholder, so that the Warrantholder shall have the right prior to the Expiration Date to purchase, at
a total price not to exceed that payable upon the exercise of this Warrant, the kind and amount of shares of stock and other securities
and property receivable upon such reclassification, reorganization, change, consolidation or merger by a holder of the number
of shares of Common Stock of the Company which might have been purchased by the Warrantholder immediately prior to such reclassification,
reorganization, change, consolidation or merger, in any such case appropriate provisions shall be made with respect to the rights
and interest of the Warrantholder to the end that the provisions hereof (including provisions for the adjustment of the Exercise
Price and of the number of shares purchasable upon exercise of this Warrant) shall thereafter be applicable in relation to any
shares of stock and other securities and property thereafter deliverable upon exercise hereof.

Section
7. Reservation and Authorization of Capital Stock. The Company shall at all times reserve and keep available for issuance
such number of its authorized but unissued shares of Common Stock as will be sufficient to permit the exercise in full of all
outstanding Warrants.

Section
8. Stock and Warrant Books. The Company will not at any time, except upon dissolution, liquidation or winding up, close
its stock books or Warrant books so as to result in preventing or delaying the exercise of any Warrant.

    	 	10	 

    	 	 	 

    

 

Section
9. Limitation of Liability. No provisions hereof, in the absence of affirmative action by the Warrantholder to purchase
Warrant Stock hereunder, shall give rise to any liability of the Warrantholder to pay the Exercise Price or as a stockholder of
the Company (whether such liability is asserted by the Company or creditors of the Company).

Section
10. Transfer. Subject to compliance with the Securities Act and the applicable rules and regulations promulgated thereunder,
this Warrant and all rights hereunder shall be transferable in whole or in part. Any such transfer shall be made at the office
or agency of the Company at which this Warrant is exercisable, by the registered holder hereof in person or by its duly authorized
attorney, upon surrender of this Warrant together with the assignment hereof properly endorsed, and promptly thereafter a new
warrant shall be issued and delivered by the Company, registered in the name of the assignee. Until registration of transfer hereof
on the books of the Company, the Company may treat the Purchaser as the owner hereof for all purposes.

Section
11. Investment Representations; Restrictions on Transfer of Warrant Stock. Unless a current registration statement under
the Securities Act shall be in effect with respect to the Warrant Stock to be issued upon exercise of this Warrant, the Warrantholder,
by accepting this Warrant, covenants and agrees that, at the time of exercise hereof, and at the time of any proposed transfer
of Warrant Stock acquired upon exercise hereof, such Warrantholder will deliver to the Company a written statement that the securities
acquired by the Warrantholder upon exercise hereof are for the account of the Warrantholder or are being held by the Warrantholder
as trustee, investment manager, investment advisor or as any other fiduciary for the account of the beneficial owner or owners
for investment and are not acquired with a view to, or for sale in connection with, any distribution thereof (or any portion thereof)
and with no present intention (at any such time) of offering and distributing such securities (or any portion thereof).

Section
12. Loss, Destruction of Warrant Certificates. Upon receipt of evidence satisfactory to the Company of the loss, theft,
destruction or mutilation of any Warrant and, in the case of any such loss, theft or destruction, upon receipt of indemnity and/or
security satisfactory to the Company or, in the case of any such mutilation, upon surrender and cancellation of such Warrant,
the Company will make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and
representing the right to purchase the same aggregate number of shares of Common Stock.

Section
13. Amendments. The terms of this Warrant may be amended, and the observance of any term herein may be waived, but only
with the written consent of the Company and the Warrantholder.

Section
14. Notices Generally. Any notice, request, consent, other communication or delivery pursuant to the provisions hereof
shall be in writing and shall be sent by one of the following means: (i) by registered or certified first class mail, postage
prepaid, return receipt requested; (ii) by facsimile transmission with confirmation of receipt; (iii) by nationally recognized
courier service guaranteeing overnight delivery; or (iv) by personal delivery, and shall be properly addressed to the Warrantholder
at the last known address or facsimile number appearing on the books of the Company, or, except as herein otherwise expressly
provided, to the Company at its principal executive office, or such other address or facsimile number as shall have been furnished
to the party giving or making such notice, demand or delivery.

Section
15. Successors and Assigns. This Warrant shall bind and inure to the benefit of and be enforceable by the parties hereto
and their respective permitted successors and assigns.

Section
16. Governing Law. In all respects, including all matters of construction, validity and performance, this Warrant and the
obligations arising hereunder shall be governed by, and construed and enforced in accordance with the laws of the State of Nevada.

    	 	11	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant  to be  signed in its name by its President.

Dated:
December 2, 2015

Avalanche
International Corp.

a
Nevada Corporation

 

 

 

By:/s/
Phil Mansour

Phil
Mansour, President

    	 	12	 

    	 	 	 

    

 

 SUBSCRIPTION
FORM

(to
be executed only upon exercise of Warrant) 

 

To:
 Avalanche International Corp.

5940
S. Rainbow Avenue

Las
Vegas, NV 89118

 

 

The
undersigned, pursuant to the provisions set forth in the attached Warrant (No. 1 ), hereby irrevocably elects to purchaseshares
of the Common Stock covered by such Warrant and herewith makes payment of $, representing the full purchase price for
such shares at the price per share provided for in such Warrant.

 

 

Dated:
 

Name:
 

Signature:
 

Address:
 

 

    	 	13	 

    	 	 	 

    

Exhibit
C – JS Note

 

SECURED
PROMISSORY NOT

 

 

	US
    $400,000	Las
                                         Vegas, Nevada

        July
        28, 2015

 

This
Promissory Note (the "Note"),
dated as of July 28, 20 l S is
made by JS Technologies, Inc., a California corporation, ("Maker"),
in favor of Avalanche International, Corp., a Nevada corporation ("Holder").

 

For
good and valuable consideration, the Maker hereby makes and delivers this Note in favor of Holder, and hereby agrees as follows:

 

1.    
Principal Obligation and Interest.
For value received, Maker promises to pay to Holder at such
place as Holder may designate in writing, in currently available funds of the United States, all sums advanced by Holder to Maker
under this Note up to a maximum principal sum of Four Hundred Thousand Dollars ($400,000). Maker's
obligation under this Note shall accrue interest at the rate of ten percent (l 0%) per annum from the date hereof until paid in
full. Interest shall be computed on the basis of a 365-day year or 366-day year, as applicable and actual days lapsed.

 

2.    
Initial and Subsequent Advances. An initial advance from Holder to Maker in the amount of $200,000 shall be made as
soon as practicable following the execution of this Note. The initial advance shall include an origination fee of $20,000, which
shall become a part of the principal balance of this Note, together with $180,000 to be advanced to the Maker. In the sole discretion
of the Maker, up to two (2) additional advances of up to $100,000 each may be made to the Maker by the Holder. The first such
additional advance may be made thirty (30) days after the parties' execution of this Note. The second such additional advance
may be made sixty (60) days after the parties' execution of this Note.

 

3.    
Payment Terms.

 

Beginning
on September 1, 2015, Maker shall remit to Holder monthly payments of interest only on the principal balance then due and outstanding.
All unpaid principal, together with any then unpaid and accrued interest and other amounts payable hereunder, shall be due and
payable in full on or before the date which is one year from the date hereof.

 

All
payments shall be applied first to interest, then to principal and shall be credited to the Maker's account on the date that such
payment is physically received by the Holder.

 

Maker
shall have the right to prepay all or any part of the principal under this Note without penalty.

 

4.                                     
Grant of Security Interest.
As collateral security for the prompt, complete,
and timely satisfaction of all present and future indebtedness, liabilities, duties, and obligations of Maker to Holder evidenced
by or arising under this Note, and including, without limitation, all principal and interest payable under this Note, any future
advances added to the principal amount due hereunder, and all attorneys' fees, costs and expenses incurred by Holder in the collection
or enforcement of the same (collectively, the "Obligations"), Maker hereby pledges, assigns and grants to Holder a continuing
security interest and lien in all of Maker's right, title and interest in and to the property, whether now owned or hereafter
acquired by Maker and whether now existing or hereafter coming into
existence or acquired, including
the proceeds of any disposition
thereof, described
on Exhibit
"A"
attached hereto and incorporated
herein by this reference (collectively ,
the "Collateral
").
As applicable, the
terms of this Note with respect to Maker's
granting of a security interest
in the Collateral to Holder shall be deemed to be a security agreement under applicable provisions of the Uniform Commercial Code
("UCC"),
with Maker as the debtor and
Holder as the secured party.

    	 	14	 

    	 	 	 

    

 

5.                                     
Perfection. Upon the execution
and delivery of this Note, Maker
authorizes Holder to file such financing statements and other documents in such offices as shall be necessary
or as Holder may reasonably deem necessary to perfect and establish the priority of the liens granted by this Note, including
any amendments, modifications,
extensions or renewals thereof.
Maker agrees, upon Holder's request, to take all such actions as shall be necessary or as Holder may reasonably request to perfect
and establish the priority of the liens granted by this Note,
including any amendments,
modifications,
extensions or renewals thereof.

 

6.                                     
Representations and Warranties of Maker. Maker hereby represents and warrants the following to Holder:

 

a.                 
Maker and those executing this Note on its behalf have the full right, power,
and authority to execute,
deliver and perform the Obligations
under this Note, which
are not prohibited or restricted under the articles of incorporation or bylaws of Maker. This Note has been duly executed and
delivered
by an authorized officer of Maker and constitutes a valid and legally binding obligation of Maker enforceable in accordance with
its terms.

 

b.                
The execution of this Note and Maker's
compliance with the terms, conditions
and provisions hereof does not conflict with or violate
any provision of any agreement, contract,
lease,
deed of trust, indenture,
or instrument to which Maker
is a party or by which Maker is bound,
or constitute a default thereunder
or result in
the imposition of any lien, charge,
encumbrance, claim or security
interest of any nature whatsoever upon any of the Collateral.

 

c.                
The security interest granted hereby in and to the Collateral constitutes a present,
valid,
binding and enforceable security
interest as collateral security for the Obligations, and, except as to leased equipment or purchase-money
encumbrances existing
as of the date of this Note as expressly disclosed to Holder in writing, such interests,
upon perfection ,
will be senior and prior to any
liens, encumbrances,
charges,
title defects, interests and
rights of any others with respect to such Collateral.

 

7.                                     
Covenants of Maker. For so Jong as any Obligations remain outstanding:

 

a.                  
Maker shall not sell, assign
or transfer any of the Collateral, or any part thereof or interest therein;

 

b.                 
Maker shall pay or cause to be paid promptly when due all taxes and assessments on the Collateral; and

 

c.                  
Maker shall keep Holder apprised, in writing, as to the current location of all of the Collateral, providing Holder with current
information including any identifying serial numbers with respect to the Collateral so the Holder may perfect and maintain the
priority of its security interest therein.

 

8.                                     
Use of Collateral. For so long as no event of default shall have occurred and be continuing under this Note, Maker
shall be entitled to use and possess the Collateral and to exercise its rights, title and interest m all contracts, agreements,
and licenses subject to the rights,
remedies,
powers and privileges of Holder
under this Note and to such use, possession or exercise not otherwise constituting an event of default. Notwithstanding anything
herein to the contrary, Maker shall remain liable to perform its duties and obligations under the contracts and agreements included
in the Collateral in accordance with their respective terms to the same extent as if this Note had not been executed and delivered;
the exercise by Holder of any right,
remedy,
power or privilege in respect
of this Note shall not release the Maker from any of its duties and obligations under such contracts and agreements; and Holder
shall have no duty, obligation or liability under such contracts and agreements included in the Collateral by reason of this Note,
nor shall Holder be obligated to perform any of the duties or obligations of Maker under any such contract or agreement or to
take any action to collect or enforce any claim (for payment) under any such contract or agreement.

 

9.                                   
Defaults. The following shall be events of default under this Note:

 

a.                  
Maker's failure to remit any payment under this Note on before the date due, if such failure is not cured in full within five
(5) days of written notice of default;

 

b.                 
Maker's failure to perform or breach of any non-monetary obligation or covenant set forth in this Note or in any other written
agreement between Maker and Holder if such failure is not cured in full within ten (l 0) days following delivery of written notice
thereof from Holder to Maker;

 

c.                  
If Maker is dissolved, whether pursuant to any applicable articles of incorporation or bylaws, and/or any applicable laws, or
otherwise;

 

d.                 
The commencement by Maker of any action or proceeding which affects the Collateral or title thereto or the interest of Holder
therein, including, but not limited to eminent domain, insolvency, code enforcement or arrangements or proceedings involving a
bankrupt or decedent;

 

e.                  
The entry of a decree or order by a court having jurisdiction in the premises adjudging the Maker bankrupt or insolvent, or approving
as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Maker under
the federal Bankruptcy Code or any other applicable federal or state law, or appointing a receiver, liquidator, assignee or trustee
of the Maker, or any substantial part if its property, or ordering the winding up or liquidation of its affairs, and the continuance
of any such decree or order unstayed and in effect for a period of twenty (20) days;

 

f.
Maker's institution of proceedings to be adjudicated a bankrupt or insolvent, or the consent by it to the institution of bankruptcy
or insolvency proceedings against it, or its filing of a petition or answer or consent seeking reorganization or relief under
the federal Bankruptcy Code or any other applicable federal or state law, or its consent to the filing of any such petition or
to the appointment of a receiver, liquidator, assignee or trustee of the company, or of any substantial part of its property,
or its making of an assignment for the benefit of creditors or the admission by it in writing of its inability to pay its debts
generally as they become due, or the taking of corporate action by the Maker in furtherance of any such action; or

 

10.                   
Rights and Remedies of Holder. Upon the occurrence of an event of default by Maker under this Note or at any time before
default when the Holder reasonably feels insecure, then, in addition to all other rights and remedies at law or in equity, Holder
may exercise any one or more of the following rights and remedies:

    	 	15	 

    	 	 	 

    

 

a.                  
Accelerate the time for payment
of all amounts payable under this Note by written notice thereof to Maker,
whereupon all such amounts shall
be immediately due and payable.

 

b.                 
Pursue and enforce all of the
rights and remedies provided to a secured party with respect to the Collateral under the Uniform Commercial Code.

 

c.                  
Make such appearance, disburse
such sums, and take such action as Holder deems necessary, in its sole discretion, to protect Holder's
interest, including but not limited to (i) disbursement of attorneys' fees, (ii) entry upon the Maker's property to make repairs
to the Collateral, and (iii) procurement of satisfactory insurance. Any amounts disbursed by Holder pursuant to this Section,
with interest thereon, shall become additional indebtedness of the Maker secured by the Collateral and shall be immediately due
and payable and shall bear interest from the date of disbursement at the default rate stated in this Note. Nothing contained in
this Section shall require Holder to incur any expense or take any action.

 

d.                 
Require Maker to assemble the
Collateral and make it available to the Maker at the place to be designated by the Holder which is reasonably convenient to both
parties. The Holder may sell all or any part of the Collateral as a whole or in part either by public auction, private sale, or
other method of disposition. The Holder may bid at any public sale on all or any portion of the Collateral. Unless the Collateral
threatens to decline speedily in value, Holder shall give Maker reasonable notice of the time and place of any public sale or
of the time after which any private sale or other disposition of the Collateral is to be made, and notice given at least 10 days
before the time of the sale or other disposition shall be conclusively presumed to be reasonable.

 

e.                  
Pursue any other rights or remedies
available to Holder at law or in equity.

 

11.                     
Full Recourse.
The liability of Maker for the Obligations shall
not be limited to the Collateral, and Maker shall have full liability therefor beyond the Collateral.

 

12.                  
Waiver of Certain Defenses.
Maker acknowledges that its obligations under this Note are separate and independent from the rights and obligations of the parties
to that certain Letter of Intent dated June 12, 2015 by and amongst the Maker, the Holder, and certain other parties (the "LOI").
With regard to any legal action
or other proceeding for the collection of amounts due under this Note, Maker hereby waives any defense to such action or proceeding
based on set-off, recoupment, or any other theory arising under or related to an alleged breach of the LOI by the Holder or others.

 

13.                   
Representation of Counsel.
Maker acknowledges that it has consulted with
or have had the opportunity to consult with Maker's legal counsel prior to executing this Note. This Note has been freely negotiated
by Maker and Holder and any rule of construction to the effect that any ambiguities are to be resolved against the drafting party
shall not be employed in the interpretation of this Note.

 

14.                                       
Choice of Laws; Actions.
This Note shall be constructed and construed
in accordance with the internal substantive laws of the State of Nevada, without regard to the choice of law principles of said
State. Maker acknowledges that this Note has been negotiated in Clark County, Nevada. Accordingly, the exclusive venue of any
action, suit, counterclaim or cross claim arising under, out of, or in connection with this
Note shall be the state or federal courts in Clark County,
Nevada. Maker hereby consents
to the personal jurisdiction of any court of competent subject matter jurisdiction sitting in Clark County, Nevada.

 

    	 	16	 

    	 	 	 

    

 

15.                   
Usury Savings Clause.
Maker expressly agrees and acknowledges
that Maker and Holder intend and agree that this Note shall not be subject to the usury laws of any state other than the State
of Nevada. Notwithstanding
anything contained in this
Note to the contrary, if collection from Maker
of interest at the rate set forth
herein would be contrary to applicable laws
of such State, then the applicable
interest rate upon default shall be the highest interest rate that may be collected from Maker under applicable laws at such time.

 

16.                   
Costs of Collection.
Should the indebtedness represented by this
Note, or any part hereof be
collected at law, in equity, or in any bankruptcy, receivership or other court proceeding, or this Note be placed in the hands
of any attorney for collection after default, Maker agrees to pay, in addition to the
principal and interest due hereon,
all reasonable attorneys' fees,
plus all other costs and expenses
of collection and enforcement, including any fees incurred in connection with such proceedings or collection of the Note
and/or enforcement of Holder's
rights.

 

17.                   
Miscellaneous.

 

a.                  
This Note shall be binding upon Maker and shall inure to the benefit of Holder and its successors, assigns, heirs, and legal representatives.

 

b.                 
Any failure or delay by Holder to insist upon the strict performance of any term, condition, covenant or agreement of this Note,
or to exercise any right, power or remedy hereunder shall not constitute a waiver of any such term, condition, covenant, agreement,
right, power or remedy.

 

c.                  
Any provision of this Note that is unenforceable shall be severed from this Note to
the extent reasonably possible
without invalidating or affecting the intent, validity or enforceability of any other provision of this Note.

 

d.                 
This Note may not be modified or amended in any respect except in a writing executed by the party to be charged.

 

e.                  
Neither party may assign this Note without the express written consent of the other party.

 

f.                  
Time is of the essence.

 

18.                           
Notices.All
notices required to be given under this Note shall be given at the
following address, which may
be changed by the applicable party on five (5) business days advance written notice:

 

	To
    Maker:	JS
                                         Technologies, Inc.

        601
        A Crane Street

        Lake
        Elsinore, CA 92530

        Attn:
        President and Chief Financial Officer

 

    	 	17	 

    	 	 	 

    

 

	To
    Holder:	Avalanche
                                         International Co.

        5940
        S. Rainbow Blvd 

        Las
        Vegas, NY 891 18

        Attn:
        President

 

Notices
may be transmitted by personal delivery or by a recognized overnight courier with confirmation of delivery, and shall be deemed
given upon receipt by the Party to whom they are addressed.

 

19.
Waiver of Certain Formalities. All parties to this Note hereby waive presentment, dishonor, notice of dishonor and
protest. All parties hereto consent to, and Holder is hereby expressly authorized to make,
without notice,
any and all renewals,
extensions,
modifications or waivers of the
time for or the terms of payment of any sum or sums due hereunder,
or under any documents or instruments
relating to or securing this Note, or of the performance of any covenants, conditions or agreements hereof or thereof or the taking.
Any such action taken by Holder
shall not discharge the liability of any party to this Note.

 

IN
WITNESS WHEREOF, this Note has been executed effective the date and place first written above.

 

“Maker”:
J.S. Technologies, Inc.

 

By:
/s/ John Suhr

Its:
President

Print
Name: John Suhr

Date:
8/4/15

    	 	18	 

    	 	 	 

    

 

Exhibit
"A"

 

Collateral

 

Each
and all of the following in which J.S.
Technologies, Inc.,
a California corporation,
has any
right,
title,
or interest,
regardless of the manner in which
such items are formally held or titled;
all as defined in the Nevada
Uniform Commercial Code - Secured Transactions (Nevada Revised Statutes ("NRS")
§ § 104.9101 et. seq.) as of the date of the Note,
and as the same may be amended
hereafter:

 

(1)                
Accounts, as
defined in NRS 104.9102(l)(a)

(2)                
Cash proceeds, as
defined in NRS 104.9102(1)(1)

(3)                
Chattel paper, as defined in NRS 104.9102(
1)(k)

(4)                
Commercial tort claims, as
defined in NRS 104.9102(l)(m)\

(5)                
Commodity accounts and commodity contracts,
as defined in NRS 104.9102(1)(n)
and NRS 104.9102(1)(0),
respectively ,

(6)                
Deposit accounts, as
defined in NRS 104.9102(1)(cc)

(7)                
Documents, as
defined in NRS 104.9102(1)(dd)

(8)                
Electronic chattel paper, as defined in NRS 1049102(1)(ee)

(9)                
Equipment, as
defined in NRS 104.9102(l)(gg)

(10)            
General intangibles, as defined in NRS 104.9102(1)(pp) (except all Suhr and Suhr-related marks,
which are specifically excluded
herefrom)

(11)            
Goods, as defined in NRS 104.9102(1)(rr)

(12)            
Instruments, as defined in NRS 104.9102(1)(uu)

(13)            
Inventory, as defined in NRS 104.9102(l)(vv)

(14)            
Investment property, as defined in NRS 104.9102(l)(ww)

(15)            
Letter-of-credit right, as
defined in NRS 104.9102( 1)(yy)

    	 	19	 

    	 	 	 

    

 

(16)            
Noncash proceeds,
as defined in NRS 104.9102(1)(fff)

(17)            
Payment intangible, as defined
in NRS 104.9102(1)(iii)\

(18)            
Proceeds,
as defined in NRS 104.9102(1)(lll)

(19)            
Promissory notes, as defined
in NRS 104.9102(1)(mmm)

(20)            
Record, as defined in NRS 104.9102(1)(qqq)

(21)            
Software, as defined in NRS 104.9102(l)(www)

(22)            
Supporting obligations, as defined
in NRS 104.9102(1)(yyy)

(23)            
Tangible chattel paper, as defined
in NRS 104.9102(l )(zzz)

(24)            
The following, as defined in
NRS 104.9102(2):
certificated securities, contracts
for sale, leases, lease agreements, lease contracts, leasehold interests,
letters of credit, negotiable
instruments, notes, proceeds of letters of credit, securities, security certificates, security entitlements, and uncertificated
securities.

 

In
addition, the Collateral shall include all copyrights, all patents and patent applications (including the inventions and improvements
described and claimed therein together with the reissues, divisions, continuations, renewals, extensions and continuations in-part
thereof), all
trade names, trademarks (except all Suhr and Suhr-related marks, which are specifically excluded herefrom) and service marks,
logos, trademark and service mark registrations (including all renewals of trademark and service mark registrations, and all rights
corresponding thereto throughout the world together, in each case, with the goodwill of the business connected with the use of,
and symbolized by, each such trade name, trademark and service mark, but excluding any such registration that would be rendered
invalid, abandoned, void or
unenforceable by reason of its being included as part of the Collateral), all inventions, processes, production methods, proprietary
information, know-how and trade secrets, all licenses or user or other agreements granted to the Maker with respect to any of
the foregoing, in each case whether now or hereafter owned or used (including the licenses or other agreements with respect to
any of the foregoing).

 

    	 	20

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