Document:

EX-10.13

 Exhibit 10.13 

BUSINESS SERVICES, PERSONNEL AND 

INFORMATION MANAGEMENT AGREEMENT 

This Business Services, Personnel and Information Management Agreement (“Agreement”) is entered into to be effective as of
the Effective Date (as defined below) by and between Karuna Pharmaceuticals, Inc., a Delaware Corporation (the “Operating Company”), PureTech Management, Inc., a Delaware corporation (the “PTM”), PureTech Health LLC, a
Delaware limited liability company (fka PureTech Ventures, LLC) (“PureTech”) and PureTech Health pic, a UK public limited company (“PTH pic”). 

WHEREAS, the parties hereto are parties to that certain Business Services and Personnel Agreement dated on or about July 24, 2009 (the
“Effective Date”) (the “Original Agreement”); 
 WHEREAS, PureTech is in the business of creating
companies and providing, among other things, management expertise, strategic advice, accounting and administrative support, computer and telecommunications services and office infrastructure to certain of its operating companies; 

WHEREAS, PTM is in the business of providing personnel services to PureTech and certain of PureTech’s operating companies; 

WHEREAS, the Operating Company desires to (i) engage PureTech to provide (or continue to provide), among other things, management
expertise, strategic advice, accounting and administrative support, computer and telecommunications services and office infrastructure (collectively, the “Business Services”) and (ii) engage PTM to provide personnel services
(the “Personnel Services”); 
 WHEREAS, from time to time, PureTech and PTH pic may share certain information with the
Operating Company, and the Operating Company may wish to, or may be required to, make certain information public, and the parties have agreed to enter into this Agreement to, among other things, set out the means by which the sharing of such
information is to be controlled and (where relevant) restricted by the Operating Company and/or PTH pic. 
 NOW, THEREFORE, in consideration
of the foregoing and the mutual covenants set forth herein, the sufficiency of which consideration is acknowledged to be sufficient, the parties agree that the Original Agreement is hereby amended, restated and superseded in its entirety as set
forth below. 
 Section 1.    Term. 

This Agreement shall commence as of the Effective Date and shall continue in full force and effect until terminated by either party giving at
least thirty (30) calendar days written notice to the other except in respect of Sections 5, 6, 7 and 8 which shall survive any termination of this Agreement. 

 Section 2.    Business Services. 

PureTech shall provide Business Services to the Operating Company at such times and in such forms as reasonably requested by Operating Company
and agreed to by PureTech. 
 Section 3.    Personnel Services. 

(a)    Provision of Personnel. PTM shall provide such Personnel Services to the Operating Company as are requested
by the Operating Company from time to time to carry on the operations of the Operating Company and agreed by PureTech, 

(b)    Payments for PTM Personnel Services. PTM shall be liable and responsible for all payments in connection with
the Personnel Services owed to employees, governments and other third parties including, without limitation, salaries, wages and other compensation, and shall pay any and all contributions, employer taxes, and assessments which may be required to be
paid in respect of unemployment insurance, workers’ compensation, social security, Medicare, tax withholding, and other obligations; provided such payments have been made in advance to PTM in accordance with Section 6 hereof. 

(c)    Benefits for PTM Personnel. PTM shall also be responsible for providing, and shall pay the cost of, the
benefit plans and prerequisites offered to all similarly situated personnel covered by the Personnel Services, in each case to the extent and in accordance with each applicable employee’s employment or services agreement; provided that the
payments for such costs have been made in advance to PTM in accordance with Section 6 hereof. 

(d)    Records. PTM shall have sole responsibility for keeping all records pertaining to the Personnel Services
provided by it to the Operating Company. PTM shall, upon request by the Operating Company, provide to the Operating Company or its designated agent(s) access to such records and shall provide to the Operating Company or its designated agent(s)
copies of such records upon request. 
 Section 4.    Compliance with Laws. 

At all times, PTM shall comply with all laws, regulations, ordinances, and other legal requirements applicable to it including, without
limitation, the obtaining of workers’ compensation insurance as such may be required by law. 
 Section 5.    Information
Management. 
 (a)    Definitions. For purposes of this Section 5, the following definitions shall
apply: 
  

	 	(i)	 “Act” means the Companies Act 2006. 

 

	 	(ii)	 “Accounts” means, in respect of any financial year or other period in respect of which
accounts are prepared in accordance with the relevant provisions of the Companies Act 2006, the audited or unaudited accounts of any party to this Agreement; 

	 	(iii)	 “Business Day” means a day (which for this purpose shall be from 9.00am to 5.30pm Eastern
Standard Time) on which banks are open for commercial business in the United States of America other than a Saturday or a Sunday; 

  

	 	(iv)	 “Disclose” or “Disclosure” means the disclosure of Information to a person
other than a party to this Agreement; 

  

	 	(v)	 “Company Disclosure Requirements” means any relevant disclosure obligations imposed on a
company by the United States Securities and Exchange Commission, the Food and Drug Administration Agency, the Act, or any other such relevant, equivalent or successor body from time to time; 

 

	 	(vi)	 “Information” means, to the extent not otherwise Public Information: 

 

	 	(1)	 in the case of information provided by or relating to PureTech and/or PTH pic, any information whatsoever
concerning PureTech and/or PTH pic that is not Public Information; and 

  

	 	(2)	 in the case of information relating to the Operating Company, any information, publication, e-mail, text message or announcement relating to the Operating Company’s products, research, clinical studies, strategy, business, customer relationships or supplier relationships, whether actual, potential, or
otherwise, its Accounts, any information pertaining to or is reasonably likely to cause any actual or prospective material change in its financial position, prospects or business, and any other material matter concerning or relating to the Operating
Company. 

  

	 	(vii)	 “Public Information” means information that (1) is or becomes generally available to the
public other than as a result of its Disclosure by the Operating Company in breach of this Agreement; or (2) pursuant to a written statement by PureTech and/or PTH pic, is not to be construed as “Information”; 

 

	 	(viii)	 “Required Disclosure” means any Disclosure made pursuant to the Company Disclosure
Requirements. 

 (b)    Operating Company Obligations. The Operating Company hereby agrees that
(i) it shall introduce and maintain appropriate control systems to protect the Information; and (ii) subject to Section 5(c), it shall not Disclose Information other than as permitted in accordance with this Agreement. 

 (c)    Required Disclosures by Operating Company. 

 

	 	(i)	 Nothing in this Agreement shall prevent the Operating Company from making a Required Disclosure, provided that
the Operating Company complies with the provisions of Section 5(c)(ii). 

  

	 	(ii)	 To the extent that the Operating Company is required to make a Required Disclosure, the Operating Company shall
not make such Required Disclosure until PureTech has approved the Draft Required Disclosure (as defined below) and the Operating Company has at its own cost: (1) prepared and delivered to PureTech and PTH pic, not less than 5 Business Days
prior to the date of the Required Disclosure, written notice of the Required Disclosure, including a copy of the proposed form of Required Disclosure (the “Draft Required Disclosure”), the reason for the proposed Required
Disclosure, and any other information or documentation as would be necessary for PureTech to identify the nature, content and extent of the proposed Required Disclosure; (2) provided PureTech and PTH pic with such information and access
to the officers, employees and premises of the Operating Company as PureTech and/or PureTech pic may reasonably required in connection with evaluating such Required Disclosure; and (3.) directed the Operating Company’s auditors to provide to
PureTech and/or PTH pic such information as PureTech may reasonably request in connection with evaluating such Required Disclosure. 

  

	 	(iii)	 The Operating Company shall not disclose Information to third parties unless such third party has executed a non-disclosure agreement subjecting such disclosure to customary confidentiality and non-use obligations. In addition, each of the Operating Company’s its directors,
officers and employees shall execute non-disclosure agreements containing customary confidentiality and non-use obligations upon their engagement by the Operating
Company. 

 (d)    Financial Statements. The Operating Company shall provide to PureTech and PTH
PLC such financial and other information as reasonably determined by PureTech or PTH pic to be necessary or appropriate in the preparation of PTH pic’s Accounts. Such information shall be provided in a manner and at such times as PureTech or
PTH PLC shall require in their sole and absolute discretion. 
 (e)    Announcements. No announcement concerning
this Agreement or any matter referred to herein shall be made by the Operating Company without the prior written approval of PureTech and/or PTH pic, except for such announcements as may be required by the Company Disclosure Requirements. 

(f)    Termination. This Section 5 shall terminate upon the date on which PureTech holds less than ten percent
(10%) of then outstanding voting power of the Operating Company. 

 Section 6.    Payments. 

(a)    Business Services, PureTech shall periodically invoice the Operating Company for the Business Services
provided by PureTech to the Operating Company and out-of-pocket expenses reasonably incurred by PureTech in connection with the provision of such Business Services. Such
invoices shall be paid to PureTech via check or wire transfer; provided, however, that if PureTech so elects, in its sole and absolute discretion, such invoices may be paid in the form of a convertible promissory note issued by the Operating
Company, or conversion of such outstanding indebtedness into equity of the Operating Company, on such terms as may be agreed by the Operating Company and PureTech. 

(b)    Personnel Services. The Operating Company shall pay PTM an amount equal to: 

 

	 	(i)	 the direct costs (including, without limitation, the cost of all wages, salaries, compensation, benefits,
contributions (including 401(k) contributions) and taxes) and assessments of the PTM Personnel provided to the Operating Company calculated on a pro rata basis for the time actually spent by PTM Personnel in service for the Operating Company, plus

  

	 	(ii)	 any amounts in respect of severance, notice or similar payments paid or owed by PTM to any PTM Personnel.

 All amounts due pursuant to this Section 6(b) shall be paid to PTM via check or wire transfer sufficiently prior to the date on
which PTM is required to make such payments to PTM Personnel. Upon any termination of this Agreement, the Operating Company shall be obligated to pay all amounts that accrued pursuant to this Section 6(b) prior to the effective date of any such
termination and (ii) all amounts in respect of severance, notice or similar payments paid or owed by PTM to any PTM Personnel. The payment obligations contained herein shall survive any termination of this Agreement. 

Section 7.    Liability. 

(a)    Indemnification of PTM and PureTech. The Operating Company shall indemnify and hold PTM, PureTech and PTH
pic, and each of their respective directors, officers, employees, trustees, contractors, subcontractors, and agents (collectively, the “Indemnitees”) harmless against any and all claims (including any employment related claims
against any such Indemnities) for loss, damage, or injuries (“Losses”) to the extent such Losses arise out of or relate to the Business Services or the Personnel Services or any breaches of this Agreement; provided that the
Operating Company shall not be liable for any Losses arising out of the gross negligence or bad faith of PTM, PureTech or PTH pic. Such indemnity shall include all costs and expenses incurred by the Indemnitees in connection with such cause of
action, including reasonable attorney’s fees and any costs of settlement. The rights and obligations of this section shall survive termination or expiration of the Agreement. 

(b)    Interruption of Service. PTM shall not be liable to the Operating Company for any loss of business or other
damage caused to the Operating Company by any personnel provided in connection with any Personnel Services or arising out of any interruption of service due to a labor strike or other reason beyond the control of PTM. 

 Section 8.    Miscellaneous Provisions. 

(a)    Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the
Commonwealth of Massachusetts. Any dispute arising hereunder which cannot be settled by the parties shall first be referred to a mediator and, if such mediation proves unsuccessful, shall be referred to a court located in Boston, Massachusetts. 

(b)    Assignment. This Agreement and the rights and obligations set forth herein may not be delegated, assigned, or
subcontracted by the Operating Company to any person or entity which is not a party without first obtaining the written consent of PTM, PureTech and PTH pic to this Agreement. 

(c)    Independent Contractor. The parties agree that the relationship of each of PureTech and PTM, on the one hand,
to the Operating Company, on the other hand, is that of an independent contractor. Neither PureTech nor PTM shall act as the agent of the Operating Company or execute any instrument purporting to bind the Operating Company. The Operating Company
shall not act as the agent of PureTech or PTM and shall not execute any instrument purporting to bind PureTech or PTM. Notwithstanding the foregoing, PTM Personnel to the Operating Company may enter into contracts, agreements, and other instruments
binding on the Operating Company if authorized to do so as part of their customary responsibilities for the Operating Company and if approved by the Operating Company. 

[remainder of the page intentionally left blank] 

 IN WITNESS WHEREOF, this Agreement is effective as of the Effective Date set forth above.

  

									
	KARUNA PHARMACETUCIALS, INC	 		 	  PURETECH MANAGEMENT, INC.

									
					
	By:	 	/s/ Eric Elenko	 		 	By:	 	/s/ Stephen Muniz
	Name: Eric Elenko	 		 	Name: Stephen Muniz
	Title: Acting CEO	 		 	Title: SVP

  

									
	 PURETECH HEALTH LLC
 (fka PureTech
Ventures, LLC)
	 		 	PURETECH HEALTH PLC
					
	By:	 	/s/ Stephen Muniz	 		 	By:	 	/s/ Stephen Muniz
	Name: Stephen Muniz	 		 	Name: Stephen Muniz
	Title: SVP	 		 	Title: SVP

  
 [Signature Page to
Business Services, Personnel and Information Management Agreement]Exhibit

SEPARATION AND CONSULTING AGREEMENT

This Separation and Consulting Agreement (the “Agreement”) is by and between Larry D. De Shon (the “Executive”) and Avis Budget Group, Inc., a Delaware Corporation (the “Company”).
WHEREAS, the Executive and the Company are party to that certain Employment Agreement dated as of September 15, 2015 (the “Employment Agreement”);
WHEREAS, the Executive will separate from his position as Chief Executive Officer, President and Chief Operating Officer of the Company effective as of the Transition Date and as an employee of the Company effective as of the Separation Date (each, as defined below); and
WHEREAS, the Company desires to retain the Executive as a consultant from the Separation Date through the end of the Consulting Period (as defined below);  
NOW, THEREFORE, for the promises and covenants set forth herein and for such other good and valuable consideration, the receipt of which is hereby acknowledged, the Executive and the Company enter into this Agreement on the following terms and conditions:
1.Transition; Separation. The Executive will continue to be employed as the Chief Executive Officer, President and Chief Operating Officer of the Company from the date of this Agreement through the earlier of (i) December 31, 2019 and (ii) the date on which the Company has hired a new Chief Executive Officer (such earlier date, the “Transition Date”).  To the extent that the Transition Date occurs prior to December 31, 2019, following the Transition Date, the Executive will continue to be employed by the Company as a full-time employee of the Company, and a Senior Advisor to the Chief Executive Officer through December 31, 2019 (unless earlier terminated by the Company for “Cause” (as defined in the Employment Agreement) or by the Executive) (the date of the Executive’s actual termination of employment with the Company, the “Separation Date”).  For the avoidance of doubt, prior to the Separation Date, the Executive’s employment with the Company will continue to be governed in all respects with the terms and conditions set forth in the Employment Agreement, provided that, (i) the change in the Executive’s duties and responsibilities from the Transition Date through the Separation Date shall in no event constitute a “Constructive Discharge” for purposes of the Employment Agreement or any other agreement or arrangement by and between the Executive and the Company or any of its affiliates, and (ii) in the event of the Executive’s death or Disability (as defined in the Employment Agreement) prior to the Separation Date, and provided the Second Release Effective Date occurs, the Executive (or his estate or spouse (for Section 3(b))) shall be entitled to the payments and benefits set forth in Sections 2(b), 3(a), 3(b), 3(c), 3(d) and 4 of this Agreement in addition to (and not in lieu of) the payments and benefits otherwise provided to the Executive (or his estate) under Section VI of the Employment Agreement (including equity vesting and pro rata bonus).  Effective as of the Transition Date (unless otherwise mutually agreed by the parties to reflect the economic intent of this Agreement), the Executive will resign (and will be deemed to have resigned without any further 

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action by the Executive) from his position as the Chief Executive Officer, President and Chief Operating Officer of the Company, and, except as expressly provided in this Section 1, from all of the Executive’s positions with the Company and its affiliates (and as a fiduciary of any benefit plan of the Company and its affiliates), including, without limitation, as a member of the Board of Directors of the Company (the “Board”).  Effective as of the Separation Date, (i) the Executive’s employment with the Company will terminate, and (ii) the Executive will commence his service as a consultant to the Company pursuant to the terms of Section 4 of this Agreement.  The Executive shall execute such additional documents as requested by the Company to evidence the foregoing resignations.  
2.    Accrued Obligations; Survival of Rights and Obligations.
(a)    Accrued Obligations. Within ten (10) business days following the Separation Date (or such earlier time as may be required by applicable law), the Company shall pay the Executive any base salary earned but unpaid through the Separation Date and any unused vacation days plus any unreimbursed business expenses entitled to reimbursement, all in accordance with the Company’s policies. The Executive shall also receive his vested and accrued benefits pursuant to the terms of any applicable Company employee benefit plans.
(b)    Severance. Provided that the Second Release Effective Date occurs, and subject to the Executive’s compliance with the terms and conditions of this Agreement, the Company agrees to pay to Executive, on the sixty-first (61st) day following the Separation Date, a lump-sum amount equal to $7,500,000.  Payment will be made by direct deposit into the same bank account that the Executive’s salary has been paid into while he was employed with the Company.
(c)    Pro-Rata Bonus. If the Executive does not remain employed through December 31, 2019 (other than as a  result of a termination for “Constructive Discharge” (as defined in the Employment Agreement and as modified herein)), provided that the Second Release Effective Date occurs, and subject to the Executive’s compliance with the terms and conditions of this Agreement, the Company agrees to pay the Executive a pro-rata portion of the Executive’s annual bonus for the 2019 fiscal year based on actual results for such year (determined by multiplying the amount of such bonus which would be due for the full fiscal year by a fraction, the numerator of which is the number of days during the 2019 fiscal year through the Separation Date and the denominator of which is 365), and payable at the same time bonuses for the 2019 fiscal year are paid to other senior executives of the Company. For the avoidance of doubt, if the Executive remains employed through December 31, 2019 (or terminates employment for Constructive Discharge (as defined in the Employment Agreement and as modified herein)), the Company shall pay the Executive his annual bonus for the 2019 fiscal year based on actual results for such year, and payable at the same time bonuses for the 2019 fiscal year are paid to other senior executives of the Company.  Individual performance goals applicable to the Executive’s annual bonus for the 2019 fiscal 

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year shall be treated as achieved at not less than target, and all other performance goals applicable to such annual bonus shall be adjusted in the same manner as such goals are adjusted for other Company senior executives in the event of any events resulting in adjustments to such performance goals.
(d)    Equity Incentive Awards. Provided that the Second Release Effective Date occurs, and subject to the Executive’s compliance with the terms and conditions of this Agreement, (i) all outstanding unvested stock-based awards granted to the Executive that vest solely based on continued service will immediately vest in full as of the Separation Date, and (ii) all outstanding unvested stock-based awards granted to the Executive that vest based on continued service and the achievement of specified objective performance goals that, in each case, are scheduled to vest in accordance with their original vesting schedule by the two (2)-year anniversary of the Separation Date will not vest in full, but will remain outstanding and become vested or be forfeited at such time(s) as provided in accordance with the terms and conditions of the applicable award agreement based on actual achievement of the performance goals applicable for purposes of vesting such awards. Any other outstanding unvested stock-based awards granted to the Executive shall be canceled as of the Separation Date. The Executive’s outstanding stock-based awards shall be treated in the same manner as those held by other Company senior executives in the event of a Change in Control of the Company, and, any performance goals applicable to any such awards shall be adjusted in the same manner as such goals are adjusted for other Company senior executives in the event of any events resulting in adjustments to such performance goals.  For the avoidance of doubt, solely the following outstanding stock-based awards shall be subject to vesting under this provision as set forth below:
Immediate Vesting Following Separation Date
	
			
	Original Grant Date
	Scheduled Vesting Date
	Total RSUs

	3/1/17
	3/1/2020
	21,312

	3/15/18
	15,052 on 3/15/2020
15,052 on 3/15/2021
	30,104

	3/15/19
	23,358 on 3/15/20
23,358 on 3/15/21
23,359 on 3/15/22
	70,075

Awards to Remain Outstanding And Vest/Forfeit Based on Achievement of Performance 
	
			
	Original Grant Date
	Scheduled Vesting Date
	PSUs

	3/1/17
	3/1/20
	95,902

	3/15/18
	3/15/21
	67,734

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(e)    Payments due to the Executive under this Section 2 shall be in lieu of any other severance benefits otherwise payable to the Executive under the Employment Agreement or any severance plan or policy of the Company or its affiliates.
3.    Continuation of Health Benefits and Perquisites.
(a)    Provided that the Second Release Effective Date occurs, and subject to the Executive’s compliance with the terms and conditions of this Agreement, the Executive shall be entitled to continued access to company car usage and financial planning expense reimbursements in accordance with Company policy and as provided below. For the avoidance of doubt:
(i)    Financial Planning. The Executive shall be entitled to continued access to financial planning benefits for a period of two years following the Separation Date (the “Continuation Period”), which shall include tax preparation.
(ii)    Company Car Usage. The Executive’s entitlement to continued access to company car usage shall include: (1) a $20,000 per annum stipend payable on a bi-weekly basis during the Continuation Period; (2) continued participation in the Company’s other company car programs, which do not result in any incremental cost to the Company, on the terms and conditions related to such programs, until such time as the Executive’s cars included in such programs as of the Separation Date are sold or otherwise removed from such programs; and (3) car rental and other benefits on a basis no less favorable than as provided to any other former executive of the Company; it being understood that such car rental benefits shall be principally for personal use and booked through the Company’s Chairman’s Club (or any higher level of future ABG program).
(iii)    Accountants. The Company shall continue to cause Price Waterhouse to (x) handle, at the Company’s expense (and on a tax-reimbursed basis to the Executive), any audits related to federal taxes or to states with respect to which the Executive is required to report income from the Company or related to the UK (as a result of the Executive performing services in the UK for the Company), and (y) file foreign bank account documents for the remainder of the executive’s tenure as Chief Executive Officer.
(b)    Executive (and his spouse, including following the Executive’s death) shall remain eligible to continue to participate in Company-sponsored health, vision and dental plans (as they may be modified from time to time with respect to all senior executive officers) until the Executive (or his spouse, as applicable) becomes eligible for coverage under Medicare or any other government-sponsored medical insurance plan which is a replacement for Medicare or until the Executive becomes eligible for comparable coverage under the medical plans of a subsequent employer, if earlier (the “Continuation of Health Benefits 

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Period”). The Executive shall be required to make contributions for health plan participation during the Continuation of Health Benefits Period that are substantially equal to the contributions required of active employed executives of the Company. If Executive is not permitted to be covered under the Company’s plans for the entire Continuation of Health Benefits Period, the Company will be permitted to alter the manner in which health benefits are provided to the Executive pursuant to this Section 3(b); provided the after-tax cost to the Executive of such benefits shall not be greater than the cost applicable to active employed executives of the Company (and the coverage for Executive (and his spouse) shall not be less favorable than the coverage applicable to active employed executives of the Company (and their spouses)).
(c)    Outplacement services offered to other salaried employees who are terminated by the Company shall be made available to the Executive, upon request, for a period of up to one year following the Separation Date on a basis no less favorable than as provided to any other similarly situated executive of the Company; it being understood that any type of coaching will not be covered by this provision.
(d)    Provided that the Second Release Effective Date occurs, and subject to the Executive’s compliance with the terms and conditions of this Agreement, the Executive shall be entitled to retain the Executive’s Company-issued iPhone and iPad, subject to the Company’s verification that the Executive has removed all confidential information from those devices within five days of the Separation Date and provided that from and after the Separation Date, the Company shall have no responsibility to maintain, extend or bear any financial responsibility for any phone, data or other plan for any such device.
4.    Consulting.  The Company shall retain the Executive pursuant to the terms of this Agreement, and the Executive shall provide counsel and advice to the Company and the Executive’s successor as Chief Executive Officer of the Company as may be reasonably requested from time to time and solely with respect to matters relevant to such successor as the Chief Executive Officer of the Company, for a one-year term commencing on the Separation Date and ending on the one-year anniversary of the Separation Date.  Notwithstanding the foregoing, the Executive or the Company may terminate the consulting arrangement hereunder at any time and for any reason (or no reason) during the Consulting Period (as defined below) by providing the other party with at least thirty (30) days’ advance written notice of such termination, provided, however, if the Company terminates the Consulting Period for any reason other than for “Cause” (as defined in the Employment Agreement) or the Consulting Period terminates as a result of the Executive’s death or “Disability” (as defined in the Employment Agreement), subject to the Executive’s (or his estate’s) timely execution and non-revocation of a release of claims substantially in the form as set forth in Section 6 of this Agreement, the Company shall pay to the Executive (or his estate) any theretofore unpaid portion of the Consulting Fee no later than thirty days following the date of such termination.  The period of time between the Separation Date and the termination of the Executive’s service relationship with the Company hereunder shall be referred to herein as the “Consulting Period.” 

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The parties hereby acknowledge that the Executive’s employment relationship with the Company shall terminate for all purposes on the Separation Date.  The parties hereto reasonably anticipate that the level of bona fide services that the Executive is to perform during the Consulting Period will not exceed more than 20% of the average level of bona fide services that the Executive performed for the Company and its subsidiaries over the immediately preceding 36-month period, and are not otherwise expected to exceed ten (10) hours per week.  The Executive may engage in other employment or services during the Consulting Period so long as the Executive is not in violation of Section VIII of the Employment Agreement (and, consistent with the terms of Section VIII of the Employment Agreement, informs the Chief HR Officer of the Company prior to commencing any such employment or other services).  During the Consulting Period, the Company shall pay the Executive a monthly retainer based on a rate of $1,000,000 per annum (the “Consulting Fees”), payable in cash on a monthly basis on the last business day of each month during the Consulting Period.  In addition, during the Consulting Period, the Company shall upon presentation of appropriate documentation, reimburse the Executive, in accordance with the Company’s expense reimbursement policy, for all reasonable business expenses approved in advance by the Company in its discretion.  
5.    No Other Compensation. The Executive acknowledges and agrees that the payments provided pursuant to this Agreement are in full discharge of any and all liabilities and obligations of the Company and its affiliates to the Executive, monetarily or with respect to employee benefits or otherwise, including, but not limited to, any and all obligations arising under the Employment Agreement, any alleged written or oral employment agreement, policy, plan or procedure of the Company and its affiliates and/or any alleged understanding or arrangement between the Executive and the Company.
6.    Release.
(a)    In consideration for the payment and benefits to be provided to the Executive pursuant to this Agreement, the Executive, for the Executive and for the Executive’s heirs, executors, administrators, trustees, legal representatives and assigns, forever release and discharge the Company and its past, present and future parent entities, subsidiaries, divisions, affiliates and related entities, successors and assigns, assets, employee benefit plans or funds, and any of its or their respective past, present and/or future directors, managers, officers, fiduciaries, attorneys, agents, trustees, administrators, employees and assigns, whether acting on behalf of the Company and its affiliates or in their individual capacities (collectively, the “Released Parties”) to the extent provided below.
(b)    Except as provided in Sections 6(d) and 6(e) below and except for the provisions of the Employment Agreement which expressly survive the termination of the Executive’s employment with the Company, the Executive knowingly and voluntarily (for himself, his heirs, executors, administrators, trustees, legal representatives and assigns) releases and forever discharges the Company and the other Released Parties from any and 

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all claims, suits, controversies, actions, causes of action, cross-claims, counter-claims, demands, debts, compensatory damages, liquidated damages, punitive or exemplary damages, other damages, claims for costs and attorneys’ fees, or liabilities of any nature whatsoever in law and in equity, both past and present (through the date that this Agreement becomes effective and enforceable) and whether known or unknown, suspected, or claimed against the Company or any of the Released Parties which the Executive, his spouse, or any of his heirs, executors, administrators, trustees, legal representatives or assigns, may have, (i) from the beginning of time through the date upon which the Executive signs this Agreement and/or re-executes this Agreement (as applicable), (ii) which arise out of or are connected with his employment with the Company through the date upon which the Executive signs this Agreement and/or re-executes this Agreement (as applicable), (iii) which arise out of or are connected with his separation or termination from the Company no later than the Separation Date; and/or (iv) which arise out of or connected with any agreement with any Released Parties and/or any other awards, policies, plans, programs or practices of the Released Parties that may apply to Executive or in which Executive may participate, other than as set forth in this Agreement, and, in each case, through the date upon which the Executive signs this Agreement and/or re-executes this Agreement (as applicable), including, but not limited to, any allegation, claim or violation, arising under: Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as amended (including the Older Workers Benefit Protection Act); the Equal Pay Act of 1963, as amended; the Americans with Disabilities Act of 1990; the Family and Medical Leave Act of 1993; the Worker Adjustment Retraining and Notification Act; the Employee Retirement Income Security Act of 1974; any applicable Executive Order Programs; the Fair Labor Standards Act; or their state or local counterparts; or under any other federal, state or local civil or human rights law, or under any other local, state, or federal law, regulation or ordinance; or under any public policy, contract or tort, or under common law; or arising under any policies, practices or procedures of the Company; or any claim for wrongful discharge, breach of contract, infliction of emotional distress, defamation; or any claim for costs, fees, or other expenses, including attorneys’ fees incurred in these matters) (all of the foregoing collectively referred to herein as the “Claims”).
(c)    The Executive represents that the Executive has made no assignment or transfer of any right, Claims, demand, cause of action, or other matter covered by Section 6(b) above.
(d)    The Executive agrees that this Agreement does not waive or release any rights or Claims that the Executive may have under the Age Discrimination in Employment Act of 1967 which arise after the date the Executive executes this Agreement or re-executes it (as applicable); provided, however, that the parties have agreed that the Executive’s employment with the Company is terminating no later than the Separation Date. The Executive acknowledges and agrees that the Executive’s separation from employment with 

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the Company is in compliance with the terms of the Employment Agreement and shall not serve as the basis for any claim or action (including, without limitation, any claim under the Age Discrimination in Employment Act of 1967).
(e)    Notwithstanding the above, the Executive further acknowledges that the Executive is not waiving and is not being required to waive any right that cannot be waived by private agreement under applicable law, including the right to file an administrative charge or participate in an administrative investigation or proceeding with the Equal Employment Opportunity Commission or similar state agency; provided, however, that the Executive disclaims and waives any right to share or participate in any monetary award resulting from the prosecution of such discrimination charge or investigation or proceeding and represents and warrants that Executive is not aware of any matter that would give rise to such a charge, investigation or proceeding. Additionally, notwithstanding anything to the contrary in this Agreement, the Executive retains and is not waiving (i) any rights to which the Executive is entitled under Sections 2, 3 or 4 of this Agreement, (ii) any claim or right relating to or under the Company’s directors’ and officers’ liability insurance coverage or any right of indemnification under the Company’s organizational documents, the Employment Agreement or otherwise, (iii) the Executive’s rights as an equity or security holder in the Company or its affiliates, (iv) the Executive’s rights under the Company’s deferred compensation plan and/or (v) the Executive’s rights to vested benefits, including the Executive’s benefits under the Company’s 401K Plan.
(f)    In signing this Agreement, the Executive acknowledges and intends that it shall be effective as a bar to each and every one of the Claims hereinabove mentioned or implied. The Executive expressly consents that this Agreement shall be given full force and effect according to each and all of its express terms and provisions. The Executive acknowledges and agrees that this waiver is an essential and material term of this Agreement and that without such waiver the Company would not have agreed to the terms of this Agreement.
(g)    The Executive further agrees that in the event the Executive should bring a Claim seeking damages against the Company, or in the event the Executive should seek to recover against the Company in any Claim brought by a governmental agency on the Executive’s behalf, this Agreement shall serve as a complete defense to such Claims to the maximum extent permitted by law. The Executive further agrees that he is not aware of any pending claim of the type described in Section 6(b) above as of the execution of this Agreement. 
(h)    The Executive agrees that neither this Agreement, nor the furnishing of the consideration for this Agreement, shall be deemed or construed at any time to be an admission by the Company, any Released Party or the Executive of any improper or unlawful conduct. 

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(i)    Nothing in this Agreement or any other policies of the Company shall prohibit or restrict the Executive or his attorneys from: (x) making any disclosure of relevant and necessary information or documents in any action, investigation, or proceeding relating to this Agreement, or as required by law or legal process, including with respect to possible violations of law; (y) participating, cooperating, or testifying in any action, investigation, or proceeding with, or providing information to, any governmental agency or legislative body, any self-regulatory organization, and/or pursuant to the Sarbanes-Oxley Act; or (z) accepting any U.S. Securities and Exchange Commission awards. In addition, nothing in this Agreement prohibits or restricts the Executive from initiating communications with, or responding to any inquiry from, any regulatory or supervisory authority regarding any good faith concerns about possible violations of law or regulation. The parties acknowledge and agree that, in connection with the Executive’s separation from the Company, the Company has requested that he fully and truthfully disclose to the Company any violations of law or regulatory requirements, or material breaches of contract by the Company or any of the other Released Parties, about which he is aware or believes in good faith to have occurred. The Executive hereby confirms that he has disclosed all such instances (if any). 
(j)    The Executive acknowledges that he may hereafter discover claims or facts in addition to or different than those which the Executive now knows or believes to exist with respect to the subject matter of the release set forth in Section 6(b) above and which, if known or suspected at the time of entering into this Agreement, may have materially affected this Agreement and the Executive’s decision to enter into it.
(k)    Notwithstanding anything in this Agreement to the contrary, this Agreement shall not relinquish, diminish, or in any way affect any rights or claims arising out of any breach by the Company or by any Released Party of this Agreement after the date upon which the Executive signs this Agreement or re-executes this Agreement (as applicable).
7.    Return of Company Property. All correspondence, records, documents, software, promotional materials, and other Company property (other than as provided under Section 3), including all copies, which came into the Executive’s possession by, through or in the course of Executive’s employment, regardless of the source and whether created by the Executive, are the sole and exclusive property of the Company, and immediately upon the Separation Date, or any time at the Company’s request, the Executive shall return to the Company all such property of the Company. Notwithstanding the foregoing, the Executive may retain his contacts and calendar.
8.    Publicity. The Executive shall not issue, without consent of the Company, any press release or make any public announcement with respect to this Agreement. Following the effective date of this Agreement and regardless of any dispute that may arise in the future, (a) the Executive agrees that he will not disparage, criticize or make statements which are negative, detrimental or injurious to the Company to any individual, company or client, including within the Company and (b) the Company agrees that it will instruct its executive officers and the members of the Board not 

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to disparage, criticize or make statements which are negative, detrimental or injurious to the Executive and it shall not make any official statements which disparage, criticize or are negative, detrimental or injurious to the Executive.  The provisions in the immediately preceding sentence shall not be violated by truthful statements in response to or in connection with legal process, required governmental testimony or filings, or administrative or arbitral proceedings (including, without limitation, depositions in connection with such proceedings) or to rebut inaccurate or false  statements made by the Executive or by the Company (or any of its executive officers or members of the Board), and the foregoing limitation on executive officers or the members of the Board shall not be violated by statements that they in good faith believe are necessary or appropriate to make in connection with performing their duties and obligations to the Company. 
9.    No Assignments; Binding Effect. Except as provided in this Section 9, no party may assign or delegate any rights or obligations hereunder without first obtaining the written consent of the other party hereto. The Company shall assign this Agreement to any successor to all or substantially all of the operations and/or assets of the Company. As used in this Agreement, the term “Company” shall mean the Company and any successor to its operations and/or assets, which assumes and agrees to perform the duties and obligations of the Company under this Agreement by operation of law or otherwise. This Agreement is binding upon, and shall inure to the benefit of, the parties and their respective heirs, executors and administrators (including the Executive’s estate, in the event of the Executive’s death), and their respective permitted successors and assigns.
10.    Governing Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of New Jersey, without giving effect to the principles of conflicts of law thereof.
11.    Arbitration.
(a)    Any controversy, dispute or claim arising out of or relating to this Agreement or the breach hereof which cannot be settled by mutual agreement (other than with respect to the matters covered by Section VIII of the Employment Agreement for which the Company may, but shall not be required to, seek injunctive relief) shall be finally settled by binding arbitration in accordance with the Federal Arbitration Act (or if not applicable, the applicable state arbitration law) as follows: Any party who is aggrieved shall deliver a notice to the other party setting forth the specific points in dispute. Any points remaining in dispute twenty (20) days after the giving of such notice may be submitted to arbitration in New York, New York, to the American Arbitration Association, before a single arbitrator appointed in accordance with the arbitration rules of the American Arbitration Association, modified only as herein expressly provided. After the aforesaid twenty (20) days, either party, upon ten (10) days’ notice to the other, may so submit the points in dispute to arbitration. The arbitrator may enter a default decision against any party who fails to participate in the arbitration proceedings.

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(b)    The decision of the arbitrator on the points in dispute shall be final, unappealable and binding, and judgment on the award may be entered in any court having jurisdiction thereof.
(c)    Except as otherwise provided in this Agreement, the arbitrator shall be authorized to apportion its fees and expenses and the reasonable attorneys’ fees and expenses of any such party as the arbitrator deems appropriate. In the absence of any such apportionment, the fees and expenses of the arbitrator shall be borne equally by each party, and each party shall bear the fees and expenses of its own attorney.
(d)    The parties agree that this Section 11 has been included to rapidly and inexpensively resolve any disputes between them with respect to this Agreement, and that this Section 11 shall be grounds for dismissal of any court action commenced by either party with respect to this Agreement, other than post-arbitration actions seeking to enforce an arbitration award. In the event that any court determines that this arbitration procedure is not binding, or otherwise allows any litigation regarding a dispute, claim, or controversy covered by this Agreement to proceed, the parties hereto hereby waive any and all right to a trial by jury in or with respect to such litigation.
(e)    The parties shall keep confidential, and shall not disclose to any person, except to their respective counsel and as may be required by law or valid subpoena, the existence of any controversy hereunder, the referral of any such controversy to arbitration or the status or resolution thereof, provided, however, that the Executive may also disclose such information to his immediate family and tax and financial advisors.
12.    Entire Agreement; Restrictive and Other Covenants.
(a)    The Executive understands that this Agreement, all relevant plans referred to herein and the sections of the Employment Agreement that survive termination, including Section IX thereof, constitute the complete understanding between the Company and the Executive, and, except as specifically provided herein, supersedes any and all agreements, understandings, and discussions, whether written or oral, between the Executive and any of the Released Parties. No other promises or agreements shall be binding unless in writing and signed by both the Company and the Executive.
(b)    Notwithstanding the foregoing, Sections VIII and IX of the Employment Agreement shall survive in accordance with their terms. For the avoidance of doubt, Executive agrees to comply at all times with Section VIII of the Employment Agreement (it being understood that, for the avoidance of doubt, all post-employment restrictive covenant periods in such Section VIII shall begin to run from and after the Separation Date, rather than from and after the end of the Consulting Period, and that, consistent with the terms of Section VIII of the Employment Agreement, informs the Chief HR Officer of the 

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Company prior to commencing any employment or other services during the post-employment restrictive covenant periods in such Section VIII).
13.    Notices. All notices, demands and other communications to be given or delivered under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to have been given when personally delivered to the Company or received by electronic mail as provided below. Such notices, demands and other communications shall be addressed to the Executive at his last known address on the books of the Company or, in the case of the Company, to it at its principal place of business, attention General Counsel, michael.tucker@avisbudget.com, or to such other address as either party may specify by notice to the other actually received.
14.    Miscellaneous. This Agreement is not intended, and shall not be construed, as an admission that any of the Released Parties has violated any federal, state or local law (statutory or decisional), ordinance or regulation, breached any contract or committed any wrong whatsoever against the Executive. Should any provision of this Agreement require interpretation or construction, it is agreed by the parties that the entity interpreting or constructing this Agreement shall not apply a presumption against one party by reason of the rule of construction that a document is to be construed more strictly against the party who prepared the document. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. Neither party shall be deemed to have made any admission of wrongdoing as a result of executing this Agreement.
15.    Tax Matters; Authorized or Required Deductions; Independent Contractor Status. The Company may withhold from any and all amounts payable to the Executive under this Agreement such federal, state or local taxes as may be required to be withheld pursuant to any applicable law or regulation and any authorized or required reductions. The intent of the Parties is that payment and benefits under this Agreement comply with Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder (“Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted and administered to be in compliance therewith.  The Executive acknowledges and agrees that during the Consulting Period the Executive’s status at all times shall be that of an independent contractor. The parties hereby acknowledge and agree that all Consulting Fees paid pursuant to Section 4 hereof shall represent fees for services as an independent contractor, and shall therefor be paid without any deductions or withholdings taken therefrom for taxes or for any other purpose. The Executive further acknowledges that the Company makes no warranties as to any tax consequences regarding payment of such fees, and specifically agrees that the determination of any tax liability or other consequences of any payment made hereunder is the Executive’s sole and complete responsibility and that the Executive will pay all taxes, if any, assessed on such payments under the applicable laws of any Federal, state, local or other jurisdiction and, to the extent not so paid, will indemnify the Company for any taxes so assessed against the Company. The Executive also agrees that during the Consulting Period, the Executive shall not be eligible to participate in any of the employee benefit plans or 

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arrangements of the Company except as expressly provided herein. Any reimbursements required to be made by the Company to the Executive under this Agreement shall be made on or before the last day of the calendar year following the calendar year in which the expense was incurred and shall not be subject to liquidation or exchange for another benefit. In addition, in no event shall the amount of expenses eligible for reimbursement in one calendar year affect the amount of expenses eligible for reimbursement in any other calendar year. 
16.    Executive Acknowledgements. The Executive acknowledges that the Executive: (a) has carefully read this Agreement in its entirety; (b) has had an opportunity to consider this Agreement for twenty-one (21) days; (c) fully understands the significance of all of the terms and conditions of this Agreement and has discussed them with the Executive’s independent legal counsel, or has had a reasonable opportunity to do so; and (d) is entering into this Agreement, knowingly, freely and voluntarily in exchange for good and valuable consideration to which the Executive would not be entitled in the absence of executing and not revoking this Agreement.
17.    Initial Consideration and Revocation Period; Effectiveness. The Executive understands that the Executive will have twenty-one (21) days from the date of receipt of this Agreement to consider the terms and conditions of this Agreement. The Executive understands that the Executive may execute this Agreement less than twenty-one (21) days from its receipt from the Company, but agrees that such execution will represent the Executive’s knowing waiver of such consideration period. The Executive may accept this Agreement by signing it and returning it to the Human Resources department, attention Ned Linnen, within such twenty-one (21) day period. After executing this Agreement, the Executive shall have seven (7) days (the “Revocation Period”) to revoke this Agreement by indicating the Executive’s desire to do so in writing delivered to the Human Resources department by no later than the seventh (7th) day after the date that the Executive signs this Agreement. The effective date of this Agreement shall be the eighth (8th) day after the Executive signs this Agreement. In the event that the Executive does not accept this Agreement as set forth above, or in the event that the Executive revokes this Agreement during the Revocation Period, this Agreement shall be deemed automatically null and void.
18.    Re-Execution of Agreement. The Company’s obligations under Sections 2(b), 2(c) and 2(d) and Section 3 of this Agreement are strictly contingent upon the Executive’s re-execution and non-revocation of this Agreement within twenty-one (21) days following the Separation Date. The date of the Executive’s re-execution of this Agreement is referred to herein as the “Re-Execution Date”. By re-executing this Agreement, the Executive advances to the Re-Execution Date Executive’s general waiver and release of all Claims against the Released Parties and the other covenants set forth in Section 6 of this Agreement. The Executive shall have seven (7) calendar days from the Re-Execution Date to revoke his re-execution of this Agreement by indicating the Executive’s desire to do so in writing delivered to the Human Resources department by no later than the seventh (7th) day after the Re-Execution Date. In the event of no revocation by the Executive, the date of the releases and covenants set forth in Section 6 of this Agreement shall be advanced through the Re-Execution Date on the eighth (8th) day after the Re-Execution Date (the “Second 

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Release Effective Date”). In the event of such revocation by the Executive, the date of the releases and covenants set forth in Section 6 of this Agreement shall not be advanced, but shall remain effective up to and including the date upon which Executive originally signs this Agreement and the Company shall not be obligated to provide the consideration in Section 2(b)-(d) and Section 3 of this Agreement.
19.    Third Party Beneficiaries. The Released Parties are intended third-party beneficiaries of this Agreement, and this Agreement may be enforced by each of them in accordance with the terms hereof in respect of the rights granted to such Released Parties hereunder. Except and to the extent set forth in the preceding sentence and as otherwise set forth in this Agreement, this Agreement is not intended for the benefit of any person other than the parties hereto, and no such other person or entity shall be deemed to be a third party-beneficiary hereof. Without limiting the generality of the foregoing, it is not the intention of the Company to establish any policy, procedure, course of dealing, or plan of general application for the benefit of or otherwise in respect of any other employee, officer, director, or stockholder, irrespective of any similarity between any contract, agreement, commitment, or understanding between the Company and such other employee, officer, director, or stockholder, on the one hand, and any contract, agreement, commitment, or understanding between the Company and the Executive, on the other hand, and irrespective of any similarity in facts or circumstances involving such other employee, officer, director, or stockholder, on the one hand, and the Executive, on the other hand.
20.    Legal Fees Incurred in Negotiating the Agreement. The Company shall pay or the Executive shall be reimbursed for the Executive’s reasonable legal fees incurred in connection with the negotiation and drafting of this Agreement, up to a maximum of $25,000, provided that any such payment shall be made on or before March 15, 2020.
21.    Counterpart Agreements. This Agreement may be signed in counterparts, and by facsimile or e-mail transmission, all of which shall be considered as original documents and which together shall constitute one and the same agreement.

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IN WITNESS WHEREOF, the parties hereto have executed this Separation and Consulting Agreement as of the date set forth below. 

	
		
	AVIS BUDGET GROUP, INC.
	 

	By: /s/ Edward P. Linnen  
Name: Edward P. Linnen  
Title: Chief Human Resources Officer
	Dated: May 26, 2019

	EXECUTIVE
/s/ Larry D. De Shon
Print Name: Larry D. De Shon
	Dated: May 26, 2019

	RE-EXECUTED (ON OR FOLLOWING 
THE SEPARATION DATE)
________________________________
Print Name: Larry D. De Shon
	Dated: _______,__ 20__

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