Document:

exv10w9

Exhibit 10.9

G-III APPAREL GROUP, LTD.

2005 STOCK INCENTIVE PLAN

(As previously amended on June 7, 2007 and September 11, 2007,

and June 9, 2009)

     1. Purpose. The purpose of the G-III Apparel Group, Ltd. 2005 Stock Incentive Plan
(the ‘‘Plan’’) is to enable G-III Apparel Group, Ltd., a Delaware corporation (the
‘‘Company’’), and its stockholders to secure the benefits of ownership of Company common
stock, $.01 par value (the ‘‘Common Stock’’), by eligible personnel of the Company and its
affiliates. The Board of Directors of the Company (the ‘‘Board’’) believes that the grant
of awards pursuant to the Plan will foster the Company’s ability to attract, retain and motivate
such persons.

     2. Types of Awards. Awards under the Plan may be in the form of any one or more of
the following: (a) options to purchase shares of Common Stock at a specified price during specified
time periods granted pursuant to Section 7(b) (‘‘Options’’), including Options intended to
qualify as ‘‘incentive stock options’’ (‘‘ISOs’’) under Section 422 of the Internal Revenue
Code of 1986, as amended (the ‘‘Code’’), and Options that do not qualify as ISOs; (b) stock
appreciation rights granted pursuant to Section 7(c) (‘‘SARs’’); (c) Common Stock granted
pursuant to Section 7(d) which is subject to certain restrictions and to a risk of forfeiture
(‘‘Restricted Stock’’); (d) rights to receive Common Stock at the end of a specified
deferral period granted pursuant to Section 7(e) (‘‘Deferred Stock’’), whether denominated
as ‘‘stock units,’’ ‘‘restricted stock units,’’ ‘‘phantom shares’’ or ‘‘performance shares’’; (e)
other stock-based awards granted pursuant to Section 7(f) (‘‘Other Stock-Based Awards’’);
and/or (f) performance-based awards granted pursuant to Section 7(h) (‘‘Performance
Awards’’).

     3. Available Shares. Subject to the provisions of Section 9, the Company may issue a
total of 3,449,771 shares of Common Stock pursuant to the Plan. Notwithstanding the preceding
sentence, subject to the provisions of Section 9, in no event may more than 1,340,000 shares of
Common Stock be issued pursuant to the exercise of ISOs granted under the Plan. In determining the
number of shares available for issuance pursuant to the Plan at any time, the following shares
shall be deemed not to have been issued (and shall remain available for issuance) pursuant to the
Plan: (a) shares subject to an award that is forfeited, canceled, terminated or settled in cash;
(b) shares repurchased by the Company from the recipient of an award for not more than the original
purchase price of such shares or forfeited to the Company by the recipient of an award; and (c)
shares withheld or tendered by the recipient of an award as payment of the exercise or purchase
price under an award or the tax withholding obligations associated with an award. Such shares may
be either authorized and unissued or held by the Company in its treasury. No fractional shares of
Common Stock may be issued under the Plan.

     4. Per-Person Award Limitation. In each fiscal year during any part of which the Plan
is in effect, an eligible person may be granted awards intended to qualify as ‘‘performance-based
compensation’’ under Section 162(m) of the Code relating to up to his Annual Share Limit. Subject
to the provisions of Section 9, an eligible person’s ‘‘Annual Share Limit’’ shall equal, in any
year during any part of which the eligible person is then eligible under the Plan, 50,000 shares
plus the amount of the eligible person’s unused Annual Share Limit as of the close of the previous
year.

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     5. Administration.

     (a) Committee. The Plan shall be administered by the Compensation Committee of the
Board or such other committee appointed by the Board to administer the Plan from time to time (the
‘‘Committee’’). The full Board may perform any function of the Committee hereunder, in
which case the term ‘‘Committee’’ shall refer to the Board. Notwithstanding the foregoing, the
Board will have sole responsibility and authority for matters relating to the grant and
administration of awards to non-employee directors of the Company.

     (b) Responsibility and Authority of Committee. Subject to the provisions of the Plan,
the Committee, acting in its discretion, shall have responsibility and full power and authority to
(i) select the persons to whom awards shall be made; (ii) prescribe the terms and conditions of
each award and make amendments thereto; (iii) construe, interpret and apply the provisions of the
Plan and of any agreement or other document evidencing an award made under the Plan; and (iv) make
any and all determinations and take any and all other actions as it deems necessary or desirable in
order to carry out the terms of the Plan. In exercising its responsibilities under the Plan, the
Committee may obtain at the Company’s expense such advice, guidance and other assistance from
outside compensation consultants and other professional advisers as it deems appropriate.

     (c) Delegation of Authority. To the fullest extent authorized under Section 157(c) of
the Delaware General Corporation Law, the Committee may delegate to officers of the Company or any
affiliate, or committees thereof, the authority, subject to such terms as the Committee shall
determine, to perform such functions, including administrative functions, as the Committee may
determine.

     (d) Committee Actions. A majority of the members of the Committee shall constitute a
quorum. The Committee may act by the vote of a majority of its members present at a meeting at
which there is a quorum or by unanimous written consent. The decision of the Committee as to any
disputed question, including questions of construction, interpretation and administration, shall be
final and conclusive on all persons. The Committee shall keep a record of its proceedings and acts
and shall keep or cause to be kept such books and records as may be necessary in connection with
the proper administration of the Plan.

     (e) Indemnification. The Company shall indemnify and hold harmless each member of the
Board, the Committee or any officer or subcommittee member to whom authority is delegated by the
Committee and any employee of the Company who provides assistance with the administration of the
Plan from and against any loss, cost, liability (including any sum paid in settlement of a claim
with the approval of the Board), damage and expense (including reasonable legal fees and other
expenses incident thereto and, to the extent permitted by applicable law, advancement of such fees
and expenses) arising out of or incurred in connection with the Plan, unless and except to the
extent attributable to such person’s fraud or willful misconduct.

     6. Eligibility. Awards may be granted under the Plan to any member of the Board
(whether or not an employee of the Company or its affiliates), to any officer or other employee of
the Company or its affiliates (including prospective officers and employees) and to any consultant
or other independent contractor who performs or will perform services for the Company or its
affiliates.

     7. Specific Terms of Awards.

     (a) General. Awards may be granted on the terms and conditions set forth in this
Section 7. In addition, the Committee may impose on any award or the exercise thereof, at the

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date of grant or thereafter, such additional terms and conditions, not inconsistent with the
provisions of the Plan, as the Committee shall determine, including terms requiring forfeiture of
awards in the event of termination of employment or service by the recipient. The Committee shall
require the payment of lawful consideration for an award to the extent necessary to satisfy the
requirements of the Delaware General Corporation Law, and may otherwise require payment of
consideration for an award except as limited by the Plan. The Committee may not accelerate the
vesting of an outstanding award in connection with the termination of a participant’s employment
unless either (1) such termination is in connection with a change in control or the participant’s
death, total disability or retirement, or (2) such termination occurs for any other reason and the
net number of shares the Company would issue by reason of such acceleration of vesting would not
cause the Company to exceed the 10% limitation contained in Section 7(g) (relating to the issuance
of shares under full value stock awards), determined as if such issuance would be made pursuant to
a full value stock award.

     (b) Stock Options. The Committee is authorized to grant Options to eligible persons
on the following terms and conditions:

     (i) Exercise Price. The exercise price per share of Common Stock purchasable
under an Option shall be determined by the Committee, provided that such exercise price
shall not be less than the Fair Market Value (as defined below) of a share of Common Stock
on the date of grant of such Option.

     (ii) Option Term; Time and Method of Exercise. The Committee shall determine
the term of each Option, which in no event shall exceed a period of ten years from the date
of grant. The Committee shall determine the time or times at which or the circumstances
under which an Option may be exercised in whole or in part (including based on achievement
of performance goals and/or future service requirements), the methods by which such exercise
price may be paid or deemed to be paid and the form of such payment (including, without
limitation, cash, Common Stock (including through withholding of Common Stock deliverable
upon exercise), other awards or awards granted under other plans of the Company or any
affiliate, or other property (including through ‘‘cashless exercise’’ arrangements, to the
extent permitted by applicable law) and the methods by or forms in which Common Stock shall
be delivered or deemed to be delivered in satisfaction of Options.

     (iii) ISO Grants to 10% Stockholders. Notwithstanding anything to the contrary
in this Section 7(b), if an ISO is granted to an employee who owns stock representing more
than 10% of the voting power of all classes of stock of the Company or a subsidiary
corporation thereof (as such term is defined in Section 424 of the Code), the term of the
Option shall not exceed five years from the date of grant and the exercise price shall be at
least 110% of the Fair Market Value (on the date of grant) of the Common Stock subject to
the Option.

     (c) Stock Appreciation Rights. The Committee is authorized to grant SARs to eligible
persons on the following terms and conditions:

     (i) Right to Payment. A SAR shall confer on the recipient a right to receive a
payment, in shares of Common Stock, with a value equal to the excess of the Fair Market
Value of a specified number of shares of Common Stock at the time the SAR is exercised

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over the exercise price of such SAR, which shall be no less than the Fair Market Value
of the same number of shares at the time the SAR was granted.

     (ii) Other Terms. The Committee shall determine the time or times at which and
the circumstances under which a SAR may be exercised in whole or in part (including based on
achievement of performance goals and/or future service requirements), the method of
exercise, the method by or forms in which Common Stock shall be delivered or deemed to be
delivered to recipients upon exercise of a SAR, whether or not a SAR shall be free-standing
or in tandem or combination with any other award, and the maximum term of an SAR, which in
no event shall exceed a period of ten years from the date of grant.

     (d) Restricted Stock. The Committee is authorized to grant Restricted Stock to
eligible persons on the following terms and conditions:

     (i) Grant and Restrictions. Restricted Stock shall be subject to such
restrictions on transferability, risk of forfeiture and other restrictions, if any, as the
Committee may impose, which restrictions may lapse separately or in combination at such
times, under such circumstances (including based on achievement of performance goals and/or
future service requirements), in such installments or otherwise and under such other
circumstances as the Committee may determine at the date of grant or thereafter.
Notwithstanding the foregoing, (i) the original stated time-based vesting period applicable
to a restricted stock award may not be shorter than three years, and (ii) the original
stated performance period applicable to performance-based vesting of a restricted stock
award may not be shorter than one year. Except to the extent restricted under the terms of
the Plan and any award document relating to the Restricted Stock, a recipient of Restricted
Stock shall have all of the rights of a stockholder, including the right to vote the
Restricted Stock and the right to receive dividends thereon (subject to any mandatory
reinvestment or other requirements imposed by the Committee).

     (ii) Forfeiture. Except as otherwise determined by the Committee, upon
termination of employment or service during the applicable restriction period, Restricted
Stock that is at that time subject to restrictions shall be forfeited and reacquired by the
Company; provided that the Committee may provide, by rule or regulation or in any award
document, or may determine in any individual case, that restrictions or forfeiture
conditions relating to Restricted Stock shall lapse in whole or in part, including in the
event of terminations resulting from specified causes.

     (iii) Certificates for Stock. Restricted Stock granted under the Plan may be
evidenced in such manner as the Committee shall determine. If certificates representing
Restricted Stock are registered in the name of the recipient, the Committee may require that
such certificates bear an appropriate legend referring to the terms, conditions and
restrictions applicable to such Restricted Stock, that the Company retain physical
possession of the certificates and that the recipient deliver a stock power to the Company,
endorsed in blank, relating to the Restricted Stock.

     (iv) Dividends and Splits. As a condition to the grant of an award of
Restricted Stock, the Committee may require that any dividends paid on a share of Restricted
Stock shall be either (A) paid with respect to such Restricted Stock at the dividend payment
date in cash, in kind, or in a number of shares of unrestricted Common

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Stock having a Fair Market Value equal to the amount of such dividends, or (B)
automatically reinvested in additional Restricted Stock or held in kind, which shall be
subject to the same terms as applied to the original Restricted Stock to which it relates.
Unless otherwise determined by the Committee, Common Stock distributed in connection with a
stock split or stock dividend, and other property distributed as a dividend, shall be
subject to restrictions and a risk of forfeiture to the same extent as the Restricted Stock
with respect to which such Common Stock or other property has been distributed.

     (e) Deferred Stock. The Committee is authorized to grant Deferred Stock to eligible
persons, which are rights to receive Common Stock, other awards, or a combination thereof at the
end of a specified deferral period, subject to the following terms and conditions:

     (i) Award and Restrictions. The issuance of Common Stock shall occur upon
expiration of the deferral period specified for an award of Deferred Stock by the Committee.
Notwithstanding the foregoing, (i) the original stated time-based vesting period applicable
to a deferred stock award may not be shorter than three years, and (ii) the original stated
performance period applicable to performance-based vesting of a deferred stock award may not
be shorter than one year. In addition, Deferred Stock shall be subject to such restrictions
on transferability, risk of forfeiture and other restrictions, if any, as the Committee may
impose, which restrictions may lapse at the expiration of the deferral period or at earlier
specified times (including based on achievement of performance goals and/or future service
requirements), separately or in combination, in installments or otherwise, and under such
other circumstances as the Committee may determine at the date of grant or thereafter.
Deferred Stock may be satisfied by delivery of Common Stock, other awards, or a combination
thereof, as determined by the Committee at the date of grant or thereafter.

     (ii) Forfeiture. Except as otherwise determined by the Committee, upon
termination of employment or service during the applicable deferral period or portion
thereof to which forfeiture conditions apply (as provided in the award document evidencing
the Deferred Stock), all Deferred Stock that is at that time subject to such forfeiture
conditions shall be forfeited; provided that the Committee may provide, by rule or
regulation or in any award document, or may determine in any individual case, that
restrictions or forfeiture conditions relating to Deferred Stock shall lapse in whole or in
part, including in the event of terminations resulting from specified causes.

     (iii) Dividend Equivalents. Unless otherwise determined by the Committee,
dividend equivalents on the specified number of shares of Common Stock covered by an award
of Deferred Stock shall be either (A) paid with respect to such Deferred Stock at the
dividend payment date in cash or in shares of unrestricted Common Stock having a Fair Market
Value equal to the amount of such dividends, or (B) deferred with respect to such Deferred
Stock, with the amount or value thereof automatically deemed reinvested in additional
Deferred Stock.

     (f) Other Stock-Based Awards. The Committee is authorized, subject to limitations
under applicable law, to grant to eligible persons such other awards that may be denominated or
payable in, valued in whole or in part by reference to, or otherwise based on, or related to,
Common Stock or factors that may influence the value of Common Stock, including, without
limitation, stock bonuses, dividend equivalents, convertible or exchangeable debt securities, other
rights convertible or exchangeable into Common Stock, purchase rights for Common

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Stock, awards with value and payment contingent upon performance of the Company or business
units thereof or any other factors designated by the Committee, awards valued by reference to the
book value of Common Stock or the value of securities of or the performance of specified
subsidiaries or affiliates or other business units and awards designed to comply with or take
advantage of the applicable local laws or jurisdictions other than the United States. The Committee
shall determine the terms and conditions of such awards.

     (g) Notwithstanding anything to the contrary contained herein, the aggregate number of shares
the Company may issue pursuant to full value stock awards under Section 7(f) may not exceed 10% of
the aggregate number of shares that may be issued under the Plan.

     (h) Performance Awards. The Committee is authorized to grant Performance Awards to eligible
persons on the following terms and conditions:

     (i) Generally. The Committee may specify that any award granted under the Plan
shall constitute a Performance Award by conditioning the grant, exercise, vesting or
settlement, and the timing thereof, upon achievement or satisfaction of such performance
conditions as may be specified by the Committee. The Committee may use such business
criteria and other measures of performance as it may deem appropriate in establishing any
performance conditions, and may exercise its discretion to reduce or increase the amounts
payable under any award subject to performance conditions, except as limited under this
Section 7(h) in the case of a Performance Award intended to qualify as ‘‘performance-based
compensation’’ under Section 162(m) of the Code.

     (ii) Awards exempt under Section 162(m) of the Code. If the Committee
determines that an Award should qualify as ‘‘performance-based compensation’’ for purposes
of Section 162(m) of the Code (other than Options or SARs which otherwise qualify as
‘‘performance-based compensation’’ for purposes of Section 162(m) of the Code), the grant,
exercise, vesting and/or settlement of such Performance Award shall be contingent upon
achievement of one or more preestablished, objective performance goals. The performance goal
or goals for such Performance Awards shall consist of one or more business criteria and a
targeted level or levels of performance with respect to each of such criteria, as specified
by the Committee consistent with this subsection (ii). One or more of the following business
criteria for the Company, on a consolidated basis, and/or for specified subsidiaries or
affiliates or other business units of the Company, shall be used by the Committee in
establishing performance goals for such Performance Awards, either on an absolute basis or
relative to an index: (1) revenues on a corporate or product by product basis; (2) earnings
from operations, earnings before or after taxes, earnings before or after interest,
depreciation, amortization, incentives, service fees or extraordinary or special items; (3)
net income or net income per common share (basic or diluted); (4) return on assets, return
on investment, return on capital, or return on equity; (5) cash flow, free cash flow, cash
flow return on investment, or net cash provided by operations; (6) economic value created or
added; (7) operating margin or profit margin; (8) and/or stock price, dividends or total
stockholder return. The targeted level or levels of performance with respect to such
business criteria may be established at such levels and in such terms as the Committee may
determine, in its discretion, including in absolute terms, as a goal relative to performance
in prior periods, or as a goal compared to the performance of one or more comparable
companies or an index covering multiple companies. All determination by the Committee as to
the establishment of performance goals, the amount potentially payable in respect of
Performance Awards, the level of

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actual achievement of the specified performance goals relating to Performance Awards
and the amount of any final Performance Award shall be recorded in writing. Specifically,
the Committee shall certify in writing, in a manner conforming to applicable regulations
under Section 162(m) of the Code, prior to settlement of each such award, that the
performance objective relating to the Performance Award and other material terms of the
award upon which settlement of the award was conditioned have been satisfied.

     8. Limits on Transferability. No award or other right or interest of an award
recipient under the Plan shall be pledged, hypothecated or otherwise encumbered or subject to any
lien, obligation or liability of such recipient to any party (other than the Company or an
affiliate thereof), or assigned or transferred by such recipient otherwise than by will or the laws
of descent and distribution or to a beneficiary upon the death of a recipient, and such awards or
rights that may be exercisable shall be exercised during the lifetime of the recipient only by the
recipient or his or her guardian or legal representative, except that awards and other rights may
be transferred to one or more transferees during the lifetime of the recipient, and may be
exercised by such transferees in accordance with the terms of such award, but only if and to the
extent such transfers are permitted by the Committee, subject to any terms and conditions which the
Committee may impose thereon. A beneficiary, transferee, or other person claiming any rights under
the Plan from or through any award recipient shall be subject to all terms and conditions of the
Plan and any award document applicable to such Participant, except as otherwise determined by the
Committee, and to any additional terms and conditions deemed necessary or appropriate by the
Committee. For purposes hereof, ‘‘beneficiary’’ shall mean the legal representatives of the
recipient’s estate entitled by will or the laws of descent and distribution to receive the benefits
under a recipient’s award upon a recipient’s death, provided that, if and to the extent authorized
by the Committee, a recipient may be permitted to designate a beneficiary, in which case the
‘‘beneficiary’’ instead shall be the person, persons, trust or trusts (if any are then surviving)
which have been designated by the recipient in his or her most recent written beneficiary
designation filed with the Committee to receive the benefits specified under the recipient’s award
upon such recipient’s death.

     9. Capital Changes, Reorganization, Sale.

     (a) Adjustments upon Changes in Capitalization. The aggregate number and class of
shares issuable pursuant to the Plan and pursuant to the exercise of ISOs, the Annual Share Limit,
the number and class of shares and the exercise price per share covered by each outstanding Option,
the number and class of shares and the base price per share covered by each outstanding SAR, the
number and class of shares covered by each outstanding award of Deferred Stock or Other Stock-Based
Award or Performance Award, any per-share base or purchase price or target market price included in
the terms of any such award, and related terms shall all be adjusted proportionately or as
otherwise appropriate to reflect any increase or decrease in the number of issued shares of Common
Stock resulting from a split-up or consolidation of shares or any like capital adjustment, or the
payment of any stock dividend, and/or to reflect a change in the character or class of shares
covered by the Plan arising from a readjustment or recapitalization of the Company’s capital stock.

     (b) Cash, Stock or Other Property for Stock. In the case of a merger, sale of assets
or similar transaction which results in a replacement of the Common Stock with stock of another
corporation (an ‘‘Exchange Transaction’’), the Company shall make a reasonable effort, but
shall not be required, to replace any outstanding Options or SARs with comparable options to

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purchase the stock or SARs on the stock of such other corporation, or shall provide for
immediate exercisability of all outstanding Options and SARs, with all options or SARs not being
exercised within the time period specified by the Board being terminated. The Committee, acting in
its discretion, may accelerate vesting of Restricted Stock, Deferred Stock, Other Stock-Based
Awards and Performance Awards, provide for cash settlement and/or make such other adjustments to
the terms of such awards as it deems appropriate in the context of an Exchange Transaction, taking
into account the manner in which outstanding Options and SARs are being treated.

     (c) Fractional Shares. In the event of any adjustment in the number of shares covered
by any award pursuant to the provisions hereof, any fractional shares resulting from such
adjustment shall be disregarded and each such award shall cover only the number of full shares
resulting from the adjustment.

     (d) Determination of Board to be Final. All adjustments under this Section 9 shall be
made by the Committee, and its determination as to what adjustments shall be made, and the extent
thereof, shall be final, binding and conclusive.

     10. Tax Withholding. As a condition to the exercise of any award, the delivery of any
shares of Common Stock pursuant to any award, the lapse of restrictions on any award or the
settlement of any award, or in connection with any other event that gives rise to a federal or
other governmental tax withholding obligation on the part of the Company or an affiliate relating
to an award (including, without limitation, an income tax deferral arrangement pursuant to which
employment tax is payable currently), the Company and/or the affiliate may (a) deduct or withhold
(or cause to be deducted or withheld) from any payment or distribution to an award recipient
whether or not pursuant to the Plan or (b) require the recipient to remit cash (through payroll
deduction or otherwise), in each case in an amount sufficient in the opinion of the Company to
satisfy such withholding obligation. If the event giving rise to the withholding obligation
involves a transfer of shares of Common Stock, then, at the sole discretion of the Committee, the
recipient may satisfy the withholding obligation described under this Section 10 by electing to
have the Company withhold shares of Common Stock or by tendering previously-owned shares of Common
Stock, in each case having a Fair Market Value equal to the amount of tax to be withheld (or by any
other mechanism as may be required or appropriate to conform with local tax and other rules).

     11. Fair Market Value. For purposes of the Plan, ‘‘Fair Market Value’’ shall
mean the fair market value of the Common Stock as determined in good faith by the Committee or
under procedures established by the Committee. Unless otherwise determined by the Committee, the
Fair Market Value of the Common Stock as of any given date shall be the closing sale price per
share of Common Stock reported on a consolidated basis for securities listed on the principal stock
exchange or market on which the Common Stock is traded on the date as of which such value is being
determined or, if there is no sale on that day, then on the last previous day on which a sale was
reported.

     12. Amendment and Termination of the Plan. Except as may otherwise be required by law
or the requirements of any stock exchange or market upon which the Common Stock may then be listed,
the Board, acting in its sole discretion and without further action on the part of the stockholders
of the Company, may amend the Plan at any time and from time to time and may terminate the Plan at
any time. No amendment or termination may affect adversely any outstanding award without the
written consent of the award recipient.

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     13. General Provisions.

     (a) Compliance with Law. The Company shall not be obligated to issue or deliver
shares of Common Stock pursuant to the Plan unless the issuance and delivery of such shares
complies with applicable law, including, without limitation, the Securities Act, the Securities
Exchange Act of 1934, as amended, and the requirements of any stock exchange or market upon which
the Common Stock may then be listed, and shall be further subject to the approval of counsel for
the Company with respect to such compliance.

     (b) Transfer Orders; Placement of Legends. All certificates for shares of Common
Stock delivered under the Plan shall be subject to such stock-transfer orders and other
restrictions as the Company may deem advisable under the rules, regulations, and other requirements
of the Securities and Exchange Commission, any stock exchange or market upon which the Common Stock
may then be listed, and any applicable federal or state securities law. The Company may cause a
legend or legends to be placed on any such certificates to make appropriate reference to such
restrictions.

     (c) No Rights Conferred. Nothing contained herein shall be deemed to give any
individual a right to receive an award under the Plan or to be retained in the employ or service of
the Company or any affiliate.

     (d) Decisions and Determinations to be Final. Any decision or determination made by
the Board pursuant to the provisions hereof and, except to the extent rights or powers under the
Plan are reserved specifically to the discretion of the Board, all decisions and determinations of
the Committee are final and binding.

     (e) Nonexclusivity of the Plan. No provision of the Plan, and neither its adoption
Plan by the Board or submission to the stockholders for approval, shall be construed as creating
any limitations on the power of the Board or a committee thereof to adopt such other incentive
arrangements, apart from the Plan, as it may deem desirable.

     14. Governing Law. The Plan and each award agreement or other document evidencing an
award shall be governed by the laws of the State of Delaware, without regard to its principles of
conflict of laws.

     15. Term of the Plan. The Plan shall become effective on the date on which it is
approved by the Company’s stockholders (the ‘‘Effective Date’’). Unless sooner terminated
by the Board, the Plan shall terminate on the tenth anniversary of the Effective Date. The rights
of any person with respect to an award made under the Plan that is outstanding at the time of the
termination of the Plan shall not be affected solely by reason of the termination of the Plan and
shall continue in accordance with the terms of the award and of the Plan, as each is then in effect
or is thereafter amended.

A-9Exhibit 10.10

Exhibit 10.10

CHANGE IN CONTROL AGREEMENT

This change in control agreement (this “Agreement”), is made and entered into
as of March 24, 2010 (the “Effective Date”), by and between QAD Inc., a Delaware corporation
(together with its successors and assigns permitted under this Agreement, the “Company”),
and Gordon Fleming, an individual (the “Employee”).

W I T N E S S E T H:

Whereas the Board of Directors of the Company (the “Board”) has determined
that it is in the best interests of the Company and its stockholders to assure that the Company
will have the continued dedication of the Employee, notwithstanding the possibility, threat or
occurrence of a Change in Control (as defined below) of the Company;

Whereas the Board believes it is imperative to diminish the inevitable distraction of
the Employee by virtue of the personal uncertainties and risks created by a pending or threatened
Change in Control, to encourage the Employee’s full attention and dedication to the Company
currently and in the event of any threatened or pending Change in Control, and to provide the
Employee with compensation arrangements upon a Change in Control which provide the Employee with
individual financial security and which are competitive with those of other corporations; and

Whereas in order to accomplish these objectives, the Board has caused the Company to
enter into this Agreement.

Now, Therefore, in consideration of the premises and mutual covenants contained
herein and for other good and valuable consideration, the Company and the Employee (individually a
“Party” and together the “Parties”) agree as follows.

1. Term of Agreement. This Agreement shall commence as of the Effective Date
and shall continue in effect until June 30, 2011, PROVIDED, HOWEVER, that commencing on June 30,
2011 and on each June 30 thereafter, the term of this Agreement shall automatically be extended for
one (1) additional year (e.g., on June 30, 2011 through June 30, 2012), unless either the Company
or the Employee shall have given written notice to the other, at least one (1) year prior thereto,
that the term of this Agreement shall not be so extended; and PROVIDED, FURTHER, HOWEVER, that
notwithstanding any such notice by the Company not to extend, the term of this Agreement shall not
terminate prior to the expiration of eighteen (18) months after the occurrence of a Change in
Control during the term of this Agreement.

2. Definitions.

2.1 “Base Monthly Salary” shall mean the monthly base compensation of the Employee.

2.2 “Cause” shall mean (a) the Employee is convicted of a felony involving property of
the Company, or (b) the Employee, in carrying out the Employee’s duties under this Agreement, is
guilty of willful refusal to perform, or willful neglect of, the Employee’s duties.

 

 

 

2.3 “Change in Control” shall mean the first occurrence of any of the following
events:

(a) Any person (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange
Act of 1934, as amended) or persons acting as a group, other than Pamela M. Lopker and Karl F.
Lopker as joint holders, or either of them (the “Lopkers”) or a living trust for their benefit over
which they maintain control of the assets of the trust and the voting rights for shares in the
trust is or becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or
indirectly, of securities of the Company representing more than fifty percent (50%) of the total
voting power represented by the Company’s then outstanding voting securities.

(b) A merger or consolidation of the Company with any other corporation, other than a merger
or consolidation that would result in the voting securities of the Company outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by being converted into
voting securities of the surviving entity) at least fifty percent (50%) of the total voting power
represented by the voting securities of the Company, or such surviving entity, outstanding
immediately after such merger or consolidation; or

(c) The sale or other disposition by the Company of all, or substantially all, of the
Company’s assets, other than a transfer to (i) a stockholder of the Company (immediately before the
asset transfer) in exchange for or with respect to its stock, (ii) an entity, fifty percent (50%)
or more of the total value or voting power of which is owned, directly or indirectly, by the
Company, (iii) a person, or persons acting as a group, that owns, directly or indirectly, fifty
percent (50%) or more of the total value or voting power represented by the Company’s then
outstanding voting securities, or (iv) an entity, fifty percent (50%) or more of the total value or
voting power of which is owned, directly or indirectly, by a person described in clause (iii).

Each of the foregoing events is intended to qualify as a change in ownership or effective
control for purposes of Section 409A(a)(2)(A)(v) of the Internal Revenue Code of 1986, as amended
(the “Code”), and the provisions of this Section 2.3 shall be interpreted accordingly.

2.4 “Disability” shall mean that the Employee has been unable to perform their duties
under this Agreement as a result of the Employee’s incapacity due to physical or mental illness
with or without reasonable accommodation, and such inability, at least twenty-six (26) weeks after
its commencement, is determined to be total and permanent by a physician selected by the Company,
or its insurers, and acceptable to the Employee or the Employee’s legal representative (such
statement of acceptability not to be unreasonably withheld).

2.5 “Division” shall mean a business unit or other substantial business operation
within the Company that is operated as a separate profit center, but that is not maintained by the
Company as a separate legal entity.

2.6 “Equity Compensation” shall mean any equity compensation granted under the QAD
Inc. 2006 Stock Incentive Program.

 

Page 2

 

3. Change in Control Severance Benefits. In the event there occurs a Change
in Control and the Employee’s employment with the Company is terminated on or before eighteen (18)
months after the date of the Change in Control, then the following shall apply:

3.1 Voluntary Resignation; Termination for Cause. If the Employee’s employment
terminates in a voluntary resignation, or if the Employee is terminated for Cause, or if the
Employee voluntarily accepts a position at the time of a Change in Control below the level
currently held by the Employee, and such acceptance occurs at, or proximate to, the time of a
Change in Control, then the Employee shall not be entitled to receive severance benefits except for
those (if any) as may be available under the Company’s severance and benefits plans and policies
existing at the time of such termination.

3.2 Constructive Termination; Termination Without Cause. If the Employee suffers
Constructive Termination (as defined below) or Termination without Cause, then the Employee shall
be entitled to the following:

(a) payment, within thirty (30) days following the termination of the Employee’s employment,
of a lump sum cash amount equal to twelve (12) months times the greater of (x) the Employee’s Base
Monthly Salary at the time of the Change in Control or (y) the Employee’s Base Monthly Salary at
the time of the termination of the Employee’s employment; and.

(b) payment, within thirty (30) days following the termination of the Employee’s employment,
of a lump sum cash amount equal to one point zero (1.0) multiplied by the greater of (x) the
average annual bonus received by the Employee during the two (2) fiscal years immediately prior to
the termination of the Employee’s employment or (y) the annual bonus that would be due for the
fiscal year in progress at the time of the termination of the Employee’s employment if the Employee
and the Company met the on target goals to receive such bonus; and

(c) immediate vesting of any Equity Compensation granted to the
Employee; and

(d) payment, within thirty (30) days following termination of the Employee’s employment, of a
lump sum cash amount equivalent to the present value of the projected cost (based upon the
Company’s programs in effect immediately prior to the Change in Control) of continuation of all
employee benefits and perquisites, including life insurance, health benefits, disability insurance,
cars and expense reimbursement, and 401(k) matching payments for a period following such
termination of employment for twelve (12) months plus an amount equal to the portion of the
Employee’s unvested account balance (as of the date of termination of employment) under the
Company’s 401(k) plan that would vest if the Employee had twelve (12) additional months of service
for vesting purposes under the Company’s 401(k) plan (subject to applicable taxes and withholding);
and

(e) all benefits pursuant to the Consolidated Omnibus Reconciliation Act of 1986 (“COBRA”) and
the Company 401(k) Plan upon termination.

3.3 Effect on Existing Plans. This Agreement and the payments provided hereunder
supersede the Company’s existing severance and benefit plans, policies and agreements existing now
and at the time of termination with respect to severance or termination benefits provided to
Employee in the event of termination of employment during the eighteen (18) month period following
a Change in Control, and are not in addition thereto.

3.4 Death; Disability. If the Employee’s employment terminates due to the Employee’s
Disability or death, then such termination shall be treated as if it were a termination without
Cause and severance and other benefits shall be provided in accordance with Section 3.2 above.

 

Page 3

 

3.5 Payment to Specified Employee. If a payment obligation under this Agreement
arises on account of the Employee’s separation from service while the Employee is a “specified
employee” (as defined under Section 409A of the Code and determined in good faith by the
Compensation Committee of
the Board), any payment of “deferred compensation” (as defined under Treasury Regulation
Section 1.409A-1(b)(1), after giving effect to the exemptions in Treasury Regulation Sections
1.409A-1(b)(3) through (b)(12)) that is scheduled to be paid within six (6) months after such
separation from service shall accrue with interest and shall be paid within 30 days after the end
of the six-month period beginning on the date of such separation from service or, if earlier,
within 30 days after the appointment of the personal representative or executor of the Employee’s
estate following his death. For purposes of the preceding sentence, interest shall accrue at the
prime rate of interest published in the northeast edition of The Wall Street Journal on the date of
Employee’s separation from service.

3.6 Termination of Employment. For all purposes under this Agreement, references to
“termination of employment,” “employment terminates” and similar terms shall mean “separation from
service” as defined for purposes of Section 409A of the Code and the regulations promulgated
thereunder.

4. Constructive Termination of Employment. “Constructive Termination” shall
mean and exist if, without the Employee’s prior written consent, one or more of the following
events occurs and the Employee shall elect to terminate the Employee’s employment with the Company:

(a) the assignment to Employee of duties which are wholly and clearly inconsistent with the
position and status of an executive of the Company, or a substantial alteration in the nature,
status or prestige of Employee’s official position resulting in a decrease in authority or
responsibilities from those in effect immediately prior to a Change in Control; ;

(b) The Employee’s Base Monthly Salary is decreased by the Company, or the Employee’s benefits
or opportunities under any employee benefit or incentive plan or program of the Company is or are
materially reduced other than in connection with a reduction in salary or benefits generally
applicable to all employees of the Company;

(c) The Employee’s own office location, as provided for in this Agreement, is relocated to a
location more than twenty-five (25) miles from the Employee’s then present location without the
Employee’s written consent;

(d) The Company fails to pay the Employee any deferred payments under any bonus or incentive
plans in a timely manner;

(e) The Company fails to reimburse the Employee for business expenses in accordance with the
Company’s policies, procedures or practices;

(f) The Company fails to agree to or actually indemnify the Employee for the Employee’s
actions and/or inactions, as either a director or officer of the Company, to the fullest extent
permitted by Delaware law, and the Company fails to maintain reasonable levels of directors and
officers liability insurance coverage for the Employee when such insurance is available;

(g) The Company fails to obtain a written agreement from any successor or assign of the
Company to assume and perform Employee’s employment agreement as then in effect and this Agreement;
or

(h) The Company purports to terminate the Employee’s employment for Cause and such purported
termination of employment is not effected in accordance with the procedures required by this
Agreement, and for purposes of this Agreement, such purported termination of employment shall be
invalid and of no force and effect.

 

Page 4

 

5. Equity Compensation Acceleration.

5.1 Equity Compensation Acceleration upon Change of Control. If the Employee does not
terminate employment in the event of a Change of Control, fifty percent (50%) of the then unvested
portion of any Equity Compensation held by the Employee under the Company’s equity compensation
plans and outstanding at the time of the Change in Control shall become vested and the Employee
shall automatically have the right to exercise all, or any portion, of such Equity Compensation to
the extent so vested in addition to any portion of the Equity Compensation exercisable prior to the
Change in Control. Where the Change in Control results from a merger or consolidation of the
Company with any other corporation, such vesting shall occur immediately prior to consummation of
such merger or consolidation, and is contingent upon the consummation of such merger or
consolidation.

5.2 Equity Compensation Acceleration Following Change in Control. Subject to the
continued employment of the Employee, after acceleration of vesting under Section 5.1 above, the
remaining unvested portion of any Equity Compensation granted to Employee prior to the Change in
Control shall become fully vested upon the first anniversary of the Change in Control (or the
vesting date of such Equity Compensation, if earlier). If, however, the Employee’s employment
terminates within the twelve (12) month period following the Change of Control, then the vesting of
such Equity Compensation shall be handled in accordance with the Change in Control Severance
Benefits set forth above in Section 3.1.

6. No Mitigation; No Offset. In the event of any termination of employment
covered by this Agreement, the Employee shall be under no obligation to seek other employment and
there shall be no offset against amounts due the Employee under this Agreement on account of any
remuneration attributable to any subsequent employment that the Employee may obtain. Any amounts
due under this Agreement are in the nature of severance payments, or liquidated damages, or both,
and are not in the nature of a penalty.

7. Severance Pay and Benefits. The severance pay and benefits provided for
in this Agreement shall be in lieu of any other severance or termination pay to which the Employee
otherwise may be entitled as a result of termination of employment during the eighteen (18) month
period following a Change in Control under any Company severance or termination plan, program,
practice, agreement or arrangement, including any agreement relating to the Employee’s employment
with the Company. If the Employee receives severance or termination benefits or payments under this
Agreement, the Employee may not receive severance or termination benefits under any other Company
policy, plan, agreement or arrangement. The Employee’s entitlement to any other compensation or
benefits shall be determined in accordance with the Company’s employee benefit plans and other
applicable programs, policies and practices then in effect, provided such other compensation or
benefits have not been addressed in this Agreement.

 

Page 5

 

8. CERTAIN ADDITIONAL PAYMENTS.

8.1 Gross-Up Payment Amount. Notwithstanding anything in this Agreement to the
contrary, in the event it shall be determined that any payment or distribution by the Company to or
for the benefit of the Employee, whether paid, payable, distributed or distributable pursuant to
this Agreement or otherwise (a “Payment”) would be subject to the excise tax imposed by Section
4999 of the Code (or any successor provision) or any interest or penalties with respect to such
excise tax (such excise tax, together with any such interest and penalties, are collectively
referred to in this Agreement as the “Excise Tax”), then the Employee shall be entitled to receive
an additional payment (a “Gross-Up Payment”) in an amount such that after the payment by the
Employee of all taxes (including any interest or penalties imposed with respect to such taxes),
including any Excise Tax, imposed upon the Gross-Up Payment, the Employee retains an amount of the
Gross-Up Payment equal to the Excise Tax imposed upon the Payment.

8.2 Determinations. Subject to the provisions of Section 8.3, all determinations
required to be made under this Section 8, including whether and when a Gross-Up Payment is required
and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such
determination, shall be made by an accounting firm of national standing reasonably selected by the
Company (the “Accounting Firm”), which shall provide detailed supporting calculations to both the
Company and the Employee within fifteen (15) business days of the receipt of written notice from
the Employee that there has been a Payment, or such earlier time as is requested by the Company.
Any Gross-Up Payment, as determined pursuant to this Section 8, shall be paid by the Company to the
Employee within fifteen (15) days of the receipt of the Accounting Firm’s determination. All fees
and expenses of the Accounting Firm shall be borne solely by the Company. Any determination by the
Accounting Firm shall be binding upon the Company and the Employee. As a result of the possible
uncertainty in application of Section 4999 of the Code at the time of the initial determination by
the Accounting Firm hereunder, it is possible that Gross-Up Payments will not have been made by the
Company that should have been made (“Underpayment”), consistent with the calculations required to
be made hereunder. In the event that the Company exhausts its remedies pursuant to Section 8.3 and
the Employee thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall
determine the amount of the Underpayment that has occurred and any such Underpayment shall be
promptly paid by the Company to or for the benefit of the Employee.

8.3 IRS Claims. The Employee shall notify the Company in writing of any claim by the
Internal Revenue Service that, if successful, would require the payment by the Company of the
Gross-Up Payment. Such notification shall be given as soon as practicable but no later than ten
(10) business days after the Employee is informed in writing of such claim and shall apprise the
Company of the nature of such claim and the date on which such claim is to be paid. The Employee
shall not pay such claim prior to the expiration of the thirty (30) -day period following the date
on which the Employee gives such notice to the Company (or such shorter period ending on the date
that any payment of taxes with respect to such claim is due). If the Company notifies the Employee
in writing prior to the expiration of such period that it desires to contest such claim, the
Employee shall:

(a) give the Company any information reasonably requested by the Company relating to such
claim,

(b) take such action in connection with contesting such claim as the Company shall reasonably
request in writing from time to time, including, without limitation, accepting legal representation
with respect to such claim by an attorney selected by the Company and reasonably acceptable to the
Employee,

 

Page 6

 

(c) cooperate with the Company in good faith in order effectively to contest such claim, and

(d) permit the Company to participate in any proceedings relating to such claim; provided,
however, that the Company shall bear and pay directly all costs and expenses (including additional
interest and penalties) incurred in connection with such contest and shall indemnify and hold the
Employee harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and payment of costs and
expenses. Without limitation on the foregoing provisions of this Section, the Company shall
control all proceedings taken in connection with such contest and, at its sole option, may pursue
or forgo any and all administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct the Employee to pay
the tax claimed and sue for a refund or contest the claim in any permissible manner, and the
Employee agrees to prosecute such contest to a determination before any administrative tribunal, in
a court of initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Employee to pay such claim and sue
for a refund, the Company shall advance the amount of such payment to the Employee, on an
interest-free basis and shall indemnify and hold the Employee harmless, on an after-tax basis, from
any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with
respect to such advance or with respect to any imputed income with respect to such advance; and
further provided that any extension of the statute of limitations relating to payment of taxes for
the taxable year of the Employee with respect to which such contested amount is claimed to be due
is limited solely to such contested amount. Furthermore, the Company’s control of the contest
shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and
the Employee shall be entitled in his sole discretion to settle or contest, as the case may be, any
other issue raised by the Internal Revenue Service or any other taxing authority.

8.4 Refunds. If, after receipt by the Employee of an amount advanced by the Company
pursuant to Section 8.3, the Employee becomes entitled to receive any refund with respect to such
claim, the Employee shall (subject to the Company’s complying with the requirements of such
Section) promptly pay to the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after receipt by the Employee of an amount
advanced by the Company pursuant to Section 8.3, a determination is made that the Employee shall
not be entitled to any refund with respect to such claim and the Company does not notify the
Employee in writing of its intent to contest such denial of refund prior to the expiration of
thirty (30) days after such determination, then such advance shall be forgiven and shall not be
required to be repaid and the amount of such advance shall offset, to the extent thereof, the
amount of Gross-Up Payment required to be paid.

8.5 409A Payment Deadline. In all events, the Gross-Up Payment, if any, including any
Underpayment, shall not be made later than the December 31 following Employee’s taxable year in
which Employee remits the Excise Tax.

9. Divestiture. Notwithstanding any other provision of this Agreement to the
contrary, the termination of the Employee’s employment with the Company in connection with the
sale, divestiture or other disposition of a subsidiary or Division shall not be deemed to be a
termination of employment of the Employee for purposes of this Agreement provided the Employee
accepts employment offered by the purchaser or acquirer of such subsidiary or Division and provided
the Company obtains an agreement from such purchaser or acquirer to honor the terms of this
Agreement.

 

Page 7

 

10. Confidentiality and Non-Compete.

10.1 Non-Disclosure of this Agreement. Employee agrees that the terms of this
Agreement are a private matter, which shall not be divulged in any form to others. Accordingly,
Employee hereby agrees that Employee will not disclose, disseminate and/or publicize or cause to be
disclosed, disseminated and/or publicized any of the terms of this Agreement or the discussions
which have led up to this Agreement to anyone, with the exception of Employee’s attorney, any
financial or tax advisors, and immediate family members, who shall not divulge its contents to any
third party.

10.2 Confidential Information. Employee acknowledges that Employee may be in receipt
of confidential information concerning the Company, agrees that any confidential information
concerning the Company and its affiliates will be maintained in strict confidence and not be
disclosed to any other person, including but not limited to, and past, present or prospective
customers of the Company. The parties agree that money damages would not be a sufficient remedy
for breach of this Section 10.2 and that, in addition to all other remedies which any party hereto
may have, each party will be entitled to specific performance and injunctive or other equitable
relief as a remedy for such breach. This Section 10.2 shall not supersede any other
confidentiality agreement entered into between the parties.

10.3 Non-Compete. In the event of any termination covered by Section 3.2 and in
return for the payment and benefits provided under this Agreement, the Employee agrees that, for a
period of one (1) year after the last day of employment with the Company, Employee shall not:

(a) compete with the Company, or assist any other party to compete with the Company, in any
manner;

(b) attempt to solicit or recruit the Company employees or otherwise interfere with the
Company’s relationship with its employees or customers;

(c) make any comment, remark or statement that disparages the Company or portrays the Company
in a negative manner.

11. At-Will Employment. The Company and the Employee acknowledge that the
Employee’s employment is at will and may be terminated at any time and for any reason, with or
without notice. On termination of the Employee’s employment, the Employee shall not be entitled to
any payments, benefits, damages, awards or compensation other than as provided by this Agreement,
or as may otherwise be available in accordance with the Company’s established employee plans and
policies at the time of termination.

12. Miscellaneous.

12.1 Governing Law. This Agreement shall be governed in all respects by the laws of
the State of California.

12.2 Successors and Assigns. Except as otherwise provided herein, the provisions
hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs,
executors and administrators of the parties hereto.

12.3 Entire Agreement: Amendment. This Agreement constitutes the full and entire
understanding and agreement between the parties with regard to the subject hereof and thereof.
Neither this Agreement nor any term hereof may be amended, waived, discharged or terminated other
than by a written instrument signed by the Company and the Employee.

 

Page 8

 

12.4 Notices. Except as may be otherwise provided herein, all notices and other
communications required or permitted hereunder shall be in writing and shall be hand delivered or
delivered via next day delivery, (a) if to the Employee, to such address as the Employee, or any of
the Employee’s successors or assigns, shall have furnished to the Company in writing or (b) if to
the Company, to such address as the Company shall have furnished to the Employee or the Employee’s
successors or assignees in writing. Notices via next day delivery will be effective three (3)
business days after delivery to the delivery firm, charges prepaid.

12.5 Delays or Omissions. No delay or omission to exercise any right, power or remedy
accruing to the Employee, upon any breach or default of Company under this Agreement, shall impair
any such right, power or remedy of the Employee, nor shall it be construed to be a waiver of any
such breach or default, or an acquiescence therein, or of any similar breach or default thereafter
occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other
breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of
any kind or character on the part of any holder of any breach or default under this Agreement, or
any waiver on the part of any holder of any provisions or conditions of this Agreement, must be in
writing and shall be effective only to the extent specifically set forth in such writing. All
remedies, either under the Agreement, or by law or otherwise afforded to any holder shall be
cumulative and not alternative.

12.6 Expenses. The Company and the Employee shall each bear their own expenses and
legal fees incurred on their behalf with respect to this Agreement and the transactions
contemplated hereby.

12.7 Counterparts. This Agreement may be executed in any number of counterparts, all
of which together shall constitute one instrument.

12.8 Severability. In the event that any provision of this Agreement becomes or is
declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement
shall continue to be in full force and effect without said provision; provided that no such
severability shall be effective if it materially changes the economic benefit of this Agreement to
any party.

12.9 Survival. The provisions of the sections entitled “Excise Tax Reduction”,
“Confidentiality and Non-Compete”,
 “At-Will Employment” and “Miscellaneous” shall survive the
expiration or termination of this Agreement.

12.10 Section 409A Compliance. This Agreement is intended not to result in the
imposition of any tax, interest charge or other assessment, penalty or addition under Section 409A
of the Code. In addition to any specific references to Section 409A of the Code in this Agreement,
all terms and conditions of this Agreement are intended, and shall be interpreted and applied to
the greatest extent possible in such manner as may be necessary, to comply with the provisions of
Section 409A of the Code and any rules, regulations or other regulatory guidance issued under
Section 409A of the Code. If any modification of this Agreement is necessary to comply with the
provisions of Section 409A of the Code, and the making of such modification itself does not fail to
comply with any requirement of Section 409A of the Code, then the Company and the Employee agree to
modify this Agreement in the least restrictive manner necessary to accomplish such result without
causing any diminution in the value of the payments to the Employee. With respect to any
reimbursement of expenses of, or any provision of in-kind benefits to, the Employee, as specified
under this Agreement, such reimbursement of expenses or provision of in-kind benefits shall be
subject to the following conditions: (1) the expenses eligible for reimbursement or the amount of
in-kind benefits provided in one taxable year shall not affect the expenses eligible for
reimbursement or the amount of in-kind benefits provided in any other taxable year, except for any
medical reimbursement arrangement providing for the reimbursement of expenses referred to in
Section 105(b) of the Code; (2) the reimbursement of an eligible expense shall be made no later
than the end of
the year after the year in which such expense was incurred; and (3) the right to reimbursement
or in-kind benefits shall not be subject to liquidation or exchange for another benefit. The
preceding provisions, however, shall not be construed as a guarantee by the Company of any
particular tax effect to Employee under this Agreement. The Company shall not be liable to
Employee for any payment made under this Agreement that is determined to result in an additional
tax, penalty, or interest under Section 409A of the Code, nor for reporting in good faith any
payment made under this Agreement as an amount includible in gross income under Section 409A of the
Code.

 

Page 9

 

12.11 Arbitration. Any controversy or claim arising out of or relating to this
Agreement, or the breach thereof, shall be settled by arbitration before one (1) arbitrator, in
Santa Barbara, California, administered by the American Arbitration Association under its
Employment Dispute Resolution Rules, and judgment on the award rendered by the arbitrator may be
entered in any court having jurisdiction thereof. Unless otherwise provided for by law, the
Company and the Employee shall each pay half of the costs and expenses of such arbitration.

EMPLOYEE HAS READ AND UNDERSTANDS THIS SECTION, WHICH PROVIDES FOR ARBITRATION. EMPLOYEE
UNDERSTANDS THAT BY SIGNING THIS AGREEMENT, EMPLOYEE AGREES TO SUBMIT ANY CLAIMS ARISING OUT OF, OR
RELATING TO, OR IN CONNECTION WITH THIS AGREEMENT, OR THE INTERPRETATION, VALIDITY, CONSTRUCTION,
PERFORMANCE, BREACH OR TERMINATION OF THIS AGREEMENT TO BINDING ARBITRATION, AND THAT THIS
ARBITRATION CLAUSE CONSTITUTES A WAIVER OF EMPLOYEE’S RIGHT TO A JURY TRIAL AND RELATES TO THE
RESOLUTION OF ALL DISPUTES RELATING TO ALL ASPECTS OF THIS AGREEMENT.

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first written
above.

	 	 	 	 	 	 	 	 	 
	 	 	QAD INC., a Delaware corporation	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ MURRAY RAY
 

	 	 
	 	03/24/10
	 

	 	 	 	Murray Ray
	 	 	 	Date
	 

	 	 	 	CPO & EVP, Human Resources	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	EMPLOYEE:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	/s/ GORDON FLEMING	 	 	 	03/21/10
	 	 	 	 	 	 	 
	 	 	Gordon Fleming	 	 	 	Date

 

Page 10

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