Document:

Trademark Assignment Agreement

 Exhibit 10.1 
 TRADEMARK ASSIGNMENT 
  

					
	 Party A (Assignor)
	 	:	  	GUANGZHOU PAN YU SAN YUET FASHION MANUFACTORY LTD
		 		  	

			
	Address	 	:	  	2/F, Factory No. 52, Ling Xing Industry Section, Shilou Town, PanYu, Guangzhou, the People’s Republic of China (“PRC”)
			
	Party B (Assignee)	 	:	  	ANNCO, INC
			
	Address	 	:	  	476 Wheelers Farms Road, Milford, Connecticut 06461, United States of America
			
	Party C	 	:	  	ANNTAYLOR SOURCING FAR EAST LIMITED
			
	Address	 	:	  	Level 32, Metroplaza Tower 1, 223 Hing Fong Road, Kwai Fong, New Territories, Hong Kong

 WHEREAS:- 
  

	A.	Party A is the registered proprietor of the trademark “AnnTaylor” which is registered in respect of “clothing, shirts, slacks, skirts, children wear, coats, baby
wear, knitwear, sportswear, woollen garments, swimsuits, trousers, underwear, shoes, hats and socks” in Class 25 in the PRC under registration no. 889663 (“Mark”). The registration of the Mark has been renewed to 27 October 2016.
A copy of the registration certificate of the Mark is attached as Annexure 1 for identification. 

  

	B.	Party B is a company in the same group as Ann Taylor Inc of 7 Times Square, New York, NY 10036, United States of America. AnnTaylor Inc has entered into a Trademark Licence
Agreement with Party A to use the Mark in the PRC (“Licence Agreement”). The period of use is until 30 June 2015 and the said licence is recorded with the PRC Trademark Office under recordal no. 200810428. A copy of the recordal
notification is attached as Annexure 2 for identification. 

  

	C.	Party B proposes to acquire and Party A agrees to assign the ownership of the Mark together with any goodwill generated from use of the Mark in the PRC. 

  

	D.	Party C is another company in the same group as Ann Taylor Inc and Party B in Hong Kong. In consideration of Party A entering into this Assignment, Party C agrees to provide a
guarantee and an indemnity to Party A in accordance with the terms of this Assignment. 

 NOW IT IS AGREED as follows:- 
  

	1.	Party A represents and warrants to Party B that:- 

  

	 	(a)	it is the sole registered owner of the Mark; 

  

	 	(b)	the registration of the Mark is valid and subsisting; 

  

	 	(c)	there is no current threatened or pending proceedings against the validity, ownership or use of the Mark; 

  

	 	(d)	this Assignment has been duly authorised, executed and delivered by it; and 

	 	(e)	there is no charge, security or encumbrance on the Mark which will prejudice or compromise the assignment contemplated hereunder or Party B’s full ownership and enjoyment of
the Mark following the execution of this Agreement, except that the parties agree that the assignment of the Mark to Party B and Party B’s ownership of the Mark shall be subject to the approval by the PRC Trademark Office.

  

	2.	Party B represents, warrants and undertakes to Party A that:- 

  

	 	(a)	this Assignment has been duly authorised, executed and delivered by it; and 

  

	 	(b)	Party C is in the same group of companies as Party B, and has and will have sufficient assets in Hong Kong to give effect to the guarantee and indemnity provided in Clause 11.

  

	3.	Party C represents, warrants and undertakes to Party A that:- 

  

	 	(a)	this Assignment has been duly authorised, executed and delivered by it; and 

  

	 	(b)	it is a company in the same group of companies as Party B, and has and will have sufficient assets in Hong Kong to give effect to the guarantee and indemnity provided in Clause 11.

  

	4.	In consideration of payment of Three Million and Seven Hundred & Fifty Thousand United States Dollars (US$3,750,000) by Party B to Party A for the purposes of this
Assignment, Party A hereby assigns unto Party B the full ownership of the Mark together with any goodwill which has been generated from use of the Mark in the PRC, the assignment being subject to the approval of the PRC Trademark Office. In this
connection, Party A hereby provides to Party B the original of the registration certificate for the Mark and will use its best endeavour to do all such acts and execute all such documents (including without limitation an Application to the PRC
Trademarks Office for Approval and Recordal of Assignment) as may be necessary or desirable to, subject to the approval of the assignment by the PRC Trademark Office, give effect to this Assignment to confer ownership in the Mark (and goodwill) unto
Party B. 

  

	5.	In the event that the assignment of the Mark from Party A to Party B is not approved by the PRC Trademark Office, Party B shall notify Party A immediately and upon Party B paying
all outstanding payments under this Assignment as if the assignment of the Mark hereunder were approved by the PRC Trademark Office:- 

  

	 	(a)	Party A shall grant Party B a perpetual exclusive royalty-free licence to use the Mark (for the avoidance of doubt, such licence shall include the right to sublicense);

  

	 	(b)	Party A shall irrevocably appoint Party B to be its sole and exclusive attorney to maintain, renew and enforce the Mark as Party B deems fit provided that all such actions shall be
at the expenses of Party B, and if Party A needs to be or for whatever reason is joined to any action involving the Mark and Party A shall engage separate legal representation (other than Party B’s lawyers, counsel and attorneys whose fees and
expenses are borne solely and fully by Party B) upon Party B’s consent, Party B shall bear and fully indemnify Party A against all costs (including all lawyer’s, counsel’s and attorney’s fees), expenses, losses and damages
incurred or suffered by or on behalf of Party A; and 

  

	 	(c)	Party A shall, upon Party B’s request, do such reasonable acts and execute such further reasonable documents to attempt such further assignment or assignments of the Mark to a
party designated by Party B provided that Party B shall bear all costs related or incidental to such assignments. 

 For the
avoidance of doubt, Party A makes no representation or warranty that the assignment of the Mark hereunder or any further assignments pursuant to Clause 5(c) herein will be approved under the Trademark Law of the PRC. 

	6.	The payment in Clause 4 shall, unless otherwise directed in writing by Party A, be paid by Party B to the following bank accounts designated by Party A set out as follows:-

 Details of Bank Account A:- 
 Name of Bank – UBS AG, Hong Kong 
 Address –52/F, Two International Finance Centre, Central, Hong
Kong 
 Name of Bank Account Holder – Poon Suk Yuen 
 Bank Account No. – 289531 
 SWIFT: UBSWHKHH 
 Details of Bank Account B:- 
 Name of Bank
– Bank of China (Hong Kong) Ltd. 
 Address – 194-196 Cheung Sha Wan Road, Sham Shui Po, Kowloon, Hong Kong 
 Name of Bank Account Holder – San Yuet Fashion Mfy. Ltd. 
 Bank Account No. – 031-352-00105086 
 SWIFT Code: BKCHHKHH 
 in the following manner:- 
  

	 	(a)	Five Hundred Thousand United States Dollars (US$500,000) to Bank Account A, or to such other bank account as shall be directed in writing by Party A, upon execution of this
Assignment, handing over the trademark certificate and signing related documents for the approval and recordal of the assignment with the PRC Trademarks Office; 

  

	 	(b)	One Million United States Dollars (US$1,000,000) to Bank Account A, or to such other bank account as shall be directed in writing by Party A, on or before the first anniversary of
this Assignment; 

  

	 	(c)	One Million United States Dollars (US$1,000,000) to Bank Account A, or to such other bank account as shall be directed in writing by Party A, on or before the second anniversary of
this Assignment or within one (1) month upon the approval of the assignment and recording Party B as the subsequent proprietor of the Mark by the PRC Trademarks Office, whichever is the later; and 

  

	 	(d)	Two Hundred & Fifty Thousand United States Dollars (US$250,000) to Bank Account B, or to such other bank account as shall be directed in writing by Party A, each on or
before 30 June of each year from 2010 to 2014, totalling One Million Two Hundred & Fifty Thousand United States Dollars (US$1,250,000). 

  

	7.	The parties acknowledge and agree that notwithstanding the execution of this Assignment, until Party B (or Party B’s designated party) becomes registered as the subsequent
proprietor of the Mark, or upon the grant of a perpetual exclusive royalty-free licence to Party B pursuant to Clause 5(a) above, whereupon either event the Licence Agreement shall cease and all obligations and liabilities thereunder shall be
discharged absolutely:- 

  

	 	(a)	the Licence Agreement shall remain valid and subsisting; 

  

	 	(b)	Ann Taylor Inc shall continue to pay the annual licence fee of Two Hundred & Fifty Thousand United States Dollars (US$250,000) in accordance with the Licence Agreement; and

  

	 	(c)	commencing 2010, if further annual licence fee shall be paid by Ann Taylor, Inc under the Licence Agreement, such licence fee shall replace the payment to be made by Party B to
Party A under Clause 6(d) above for the same year. 

  

	8.	Notwithstanding the terms of the Licence Agreement, Party A now represents and warrants to Party B that:- 

  

	 	(a)	no party other than Ann Taylor Inc or the buyers, dealers or distributors of Party A’s products bearing the Mark has a licence to use the Mark and for the avoidance of doubt,
Ann Taylor Inc shall have the right to sublicense; 

	 	(b)	subject to sub-clause (c), it shall cease all use of the Mark within two (2) months from the execution of this Assignment, such cessation shall include also use of the Mark as
part of a corporate, trade or domain name; 

  

	 	(c)	within two (2) months from execution of this Assignment, it shall cause its buyers, dealers and distributors to cease all use of the Mark; 

  

	 	(d)	after the execution of this Assignment, it shall not grant any right to use the Mark to any third party or do any act to subject the Mark to any charge, security or encumbrance or
do any act whereby the rights of Party B in the Mark shall be prejudiced or compromised. 

  

	9.	Party A further represents and warrants to Party B that it does not have (whether filed by itself or through a third party) any other application or registration similar or
identical to the mark “AnnTaylor” in the PRC or anywhere in the world and undertakes that it will not, directly or indirectly, whether by itself, its directors, shareholders, officers or other third party apply for the registration of
any trademark which is identical with or similar to the Mark in any classes of goods or services in China or elsewhere as from the date of execution of this Assignment. In this relation, Party A represents that it has not used
and has not licensed the use of the mark “San Taylor” registered in Class 25 in the PRC under registration no. 1935541 and agrees that it will not use nor license the use of the said San Taylor mark as from the date of this Assignment and
will allow the registration to lapse when the validity date expires on 6 January 2013. 

  

	10.	Party B (including its officers, agents, servants, successors, assigns, associates and affiliates, and the group of companies in which Party B and/or Party C is a member) hereby
waives any and all claims, demands and proceedings against Party A and its shareholders, officers, agents, servants, successors, assigns, associates, affiliates, dealers and distributors (“Party A and its related parties”) and releases
Party A and its related parties from any and all claims, demands and proceedings which may arise directly or indirectly out of or during any of Party A and its related parties’ use or registration of the Mark before the approval and recordal of
this Assignment by the PRC Trademark Office. To avoid any doubt, such waiver and release shall not include any claims, demands and proceedings arising from Party A’s breach of any of the terms of this Assignment. 

  

	11.	In consideration of Party A entering into this Assignment, the sufficiency of the consideration being hereby acknowledged by Party C, Party C hereby unconditionally and irrevocably
guarantees to Party A the due and punctual performance and observance by Party B of Party B’s obligations under the terms of this Assignment and this guarantee shall not be affected by the granting of time or other waiver or indulgence on the
part of Party A. Further, Party C hereby indemnifies Party A in respect of any breach or failure in performance by Party B of any of the terms of this Assignment. The word “indemnify” shall mean to indemnify, keep indemnified and hold
harmless Party A from and against all costs (including the costs of enforcement and all legal costs), expenses, losses and damages which Party A may incur or suffer. 

  

	12.	If any dispute arises from this Assignment, the parties should mediate in good faith. If that fails, the dispute shall be referred to the jurisdiction of the courts of the Hong Kong
Special Administrative Region (“Hong Kong”) and Hong Kong laws shall apply. 

  

	13.	This Assignment shall become effective as from the date of execution by all parties. Party A and Party B shall jointly apply for approval and recordal of this Assignment, but the
costs and expenses for the application for approval and recordal of this Assignment (including any subsequent appeals, whether judicial or administrative or otherwise) shall be borne solely by Party B. 

  

	14.	If any party wishes to give notice (including demand) to the other party, such notice shall be in writing and shall be couriered to the following address of the respective parties:-

  

			
	Party A	  	2/F, Factory No. 52, Ling Xing Industry Section, Shilou Town, PanYu, Guangzhou, PRC - for the attention of Lee Yu Ming

			
	Party B	  	c/o AnnTaylor Inc, 7 Times Square, New York, NY 10036, United States of America - for the attention of General Counsel with a copy to Mr Kenny Wong, JSM, 19/F, Prince’s Building, 10
Chater Road, Central, Hong Kong (Ref: 6720680/1)
		
	Party C	  	Level 32, Metroplaza Tower 1, 223 Hing Fong Road, Kwai Fong, New Territories, Hong Kong - for the attention of General Counsel with a copy to Mr Kenny Wong, JSM, 19/F, Prince’s Building,
10 Chater Road, Central, Hong Kong (Ref: 6720680/1)

 Notices will be considered received with a receipt acknowledgement of the courier company. Notice
period begins from the date of receipt of the notice. 
 Signed by the duly authorised representatives of Party A and Party B and executed by Party C as a
deed this 15th day of July 2009. 
  

			
	Party A	 	Party B
		
	 Company Chop and
 SIGNED by its legal
representative
 POON Suk Yuen
	 	 SIGNED by Barbara EISENBERG
 (U.S. passport No.
212192600)
 duly authorized representative of ANNCO, INC

 Party C 
 SEALED with
the Common Seal 
 of Party C and Signed by 
 Barbara EISENBERG

 (U.S. passport No. 212192600) 
 in accordance 

with its constitution2001 STOCK OPTION PLAN AMENDED AND RESTATED AS OF AUGUST 17, 2009

 EXHIBIT 4.1 
 AMENDED AND RESTATED 
 AMERICAN SOFTWARE, INC. 
 2001 STOCK OPTION PLAN 
 (Effective
August 17, 2009) 
 American Software, Inc., a Georgia corporation (the “Company”), hereby establishes the American
Software, Inc. 2001 Stock Option Plan (the “Plan”), effective as of May 16, 2000, the date on which this Plan was adopted by the Board of Directors of the Company. No Options shall be granted under this Plan until (a) it has been
approved by the affirmative vote of shareholders holding a majority in voting power of the Common Stock of the Company or (b) September 1, 2000, whichever shall occur later (the “Commencement Date”). Options may not be granted
under the Plan more than ten years after May 16, 2000. 
 1. Purpose. The purpose of the Plan is to attract and retain the best
available talent and encourage the highest level of performance by officers, employees, directors, advisors and consultants, and to provide them with incentives to put forth maximum efforts for the success of the Company’s business in order to
serve the best interests of the Company. Options granted under the Plan may be Incentive Stock Options or Nonqualified Stock Options, as such terms are hereinafter defined. 
 2. Definitions. The following terms, when used in the Plan with initial capital letters, will have the following meanings: 
  

	 	(a)	“Act” means the Securities Exchange Act of 1934 as in effect from time to time. 

  

	 	(b)	“Board” means the Board of Directors of the Company. 

  

	 	(c)	“Change in Control” means the occurrence, prior to the expiration of an Option, of any of the following events: 

  

	 	(i)	the Company is merged, consolidated or reorganized into or with another corporation or other legal person, and as a result of such merger, consolidation or reorganization less than
two-thirds of the combined voting power of the then-outstanding securities entitled to vote generally in the election of directors (“Voting Stock”) of such corporation or person immediately after such transaction are held in the aggregate
by the holders of Voting Stock of the Company immediately prior to such transaction; 

  

	 	(ii)	the Company sells or otherwise transfers all or substantially all of its assets to another corporation or other legal person, and as a result of such sale or transfer less than
two-thirds of the combined voting power of the then-outstanding Voting Stock of such corporation or person immediately after such sale or transfer is held in the aggregate by the holders of Voting Stock of the Company immediately prior to such sale
or transfer; 

  

	 	(iii)	there is a report filed on Schedule 13D or Schedule 14D-1 (or any successor schedule, form or report), each as promulgated pursuant to the Act, disclosing that any person (as the
term “person” is used in Section 13(d)(3) or Section 14(d)(2) of the Act) has become, after the effective date hereof, the direct or indirect beneficial owner (as the term “beneficial owner” is defined under Rule 13d-3
or any successor rule or regulation promulgated under the Act) of securities representing 50% or more of the combined voting power of the then-outstanding Voting Stock of the Company other than by gift or inheritance; 

	 	(iv)	the Company files a report or proxy statement with the Securities and Exchange Commission pursuant to the Act disclosing in response to Form 8-K or Schedule 14A (or any successor
schedule, form or report or item therein) that a change in control of the Company has occurred or will occur in the future pursuant to any then-existing contract or transaction; or 

  

	 	(v)	if, during any period of two consecutive years, individuals who at the beginning of any such period constitute the directors of the Company cease for any reason to constitute at
least a majority thereof; provided, however, that for purposes of this clause (v) each director who is first elected, or first nominated for election by the Company’s stockholders, by a vote of at least two-thirds of the directors of the
Company (or a committee thereof) then still in office who were directors of the Company at the beginning of any such period will be deemed to have been a director of the Company at the beginning of such period; and provided further that this clause
(v) shall not commence applicability until such time as at least five directors are serving concurrently on the Board, but shall apply thereafter regardless of the number of directors. 

 Notwithstanding the foregoing provisions of clauses (iii) or (iv) above, unless otherwise determined in a specific case by majority vote of the
Board, a “Change in Control” will not be deemed to have occurred for purposes of clause (iii) or clause (iv) above solely because (1) the Company, (2) a Subsidiary, or (3) any Company-sponsored employee stock
ownership plan or any other employee benefit plan of the Company or any Subsidiary either files or becomes obligated to file a report or a proxy statement under or in response to Schedule 13D, Schedule 14D-1, Form 8-K or Schedule 14A (or any
successor schedule, form or report or item therein) under the Act disclosing beneficial ownership by it of shares of Voting Stock of the Company, whether in excess of 50% or otherwise, or because the Company reports that a change in control of the
Company has occurred or will occur in the future by reason of such beneficial ownership or any increase or decrease thereof. For purposes of clauses (i), (ii) and (iii) above, for so long as the entity in question maintains two classes of
common stock substantially as currently maintained by the Company, the phrase “combined voting power of the then-outstanding Voting Stock” shall be calculated by allocating to each Class A Common Share one vote and by allocating to
each Class B Common Share three votes. 
  

	 	(d)	“Code” means the Internal Revenue Code of 1986, as in effect from time to time. 

  

	 	(e)	“Commencement Date” shall mean May 1, 2001 or the date the shareholders of the Company approve the Plan, whichever occurs later. 

  

	 	(f)	“Committee” shall refer to either the Stock Option Committee or the Special Stock Option Committee. 

  

	 	(g)	“Common Stock” means the Class A Common Shares, $.10 par value, of the Company or any security into which Class A Common Shares may be changed by reason of any
transaction or event of the type described in Section 9. 

  

	 	(h)	“Date of Grant” means the date specified by the Stock Option Committee or the Special Stock Option Committee, as applicable, on which a grant of Stock Options will become
effective (which date will not be earlier than the date on which such Committee takes action with respect thereto). 

  

	 	(i)	“Disability” means (i) with respect to a Grantee who is eligible to participate in the Company’s program of long-term disability insurance, a condition with
respect to which the Grantee is entitled to commence benefits under such program of long-term disability insurance, and (ii) with respect to all Grantees generally (including a Grantee who is eligible to participate in the Company’s
program of long-term disability insurance), a disability as determined under procedures established by the relevant Committee or in any Option Grant Agreement. 

  

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	 	(j)	“Grantee” means a person who is selected by the Stock Option Committee or the Special Stock Option Committee, as applicable, to receive Stock Options and who is at that
time (i) an executive officer or other key employee of the Company or any Subsidiary, (ii) an advisor or consultant to the Company or any Subsidiary, or (iii) a member of the Board. 

  

	 	(k)	“Incentive Stock Option” means an Option granted in accordance with Section 422 of the Code. 

  

	 	(l)	“Market Value” means last sale price as reported on any national securities exchange or automated quotation system on which the Common Stock is listed on the Date of Grant
if such date is a trading day and, if such date is not a trading day, on the immediately preceding date which is a trading day. 

  

	 	(m)	“Nonemployee Director” means a member of the Board who is not an employee of the Company or any Subsidiary and who qualifies as a “Non-Employee Director” within
the meaning of Rule 16b-3. 

  

	 	(n)	“Nonqualified Stock Option” means an Option other than an Incentive Stock Option. 

  

	 	(o)	“Option Grant Agreement” means the instrument by which the Company grants an Option to a Grantee, which instrument contains the particular terms of such Option in addition
to the terms set forth in the Plan. 

  

	 	(p)	“Option Price” means the purchase price per share payable on exercise of an Option. 

  

	 	(q)	“Rule 16b-3” means Rule 16b-3 under Section 16 of the Act, as such Rule is in effect from time to time. 

  

	 	(r)	“Special Stock Option Committee” means a committee that at all times consists of at least two Nonemployee Directors and all of whose members qualify as “outside
directors” within the meaning of Section 162(m) of the Code, appointed by the Board to grant and administer Options granted under Section 5. 

  

	 	(s)	“Option” means the right to purchase shares of Common Stock upon exercise of Stock option granted pursuant to Section 4, Section 5 or Section 6.

  

	 	(t)	“Stock Option Committee” means the stock option committee appointed by the Board to grant and administer Options granted under Section 4. 

  

	 	(u)	“Subsidiary” means any corporation, partnership, joint venture or other entity in which the Company owns or controls, directly or indirectly, not less than 50% of the
total combined voting power or equity interests represented by all classes of stock issued by such corporation, partnership, joint venture or other entity. 

  

	 	(v)	“10-Percent Shareholder” means any person who at the time of the grant of an Option owns capital stock of the Company possessing more than 10% of the combined voting power
of all classes of capital stock of the Company. 

 3. Shares Available Under Plan. The shares of Common Stock that may
be issued under the Plan will not exceed in the aggregate 6,075,000 shares, subject to adjustment as provided in Section 9. Such shares may be shares of original issuance or treasury shares or a combination of the foregoing. Any shares of
Common Stock that are subject to Stock Options that are terminated, expire unexercised, are forfeited or are surrendered will again be available for issuance under the Plan. 
  

 3 

 4. Stock Options for Grantees - Nonexempt Grants. The Stock Option Committee may from time to time
authorize Option grants to any Grantee to purchase shares of Common Stock upon such terms and conditions as such Committee may determine in accordance with the provisions set forth below. Grants made by the Stock Option Committee pursuant to this
Section 4 are not intended to comply with or otherwise satisfy the requirements of Rule 16b-3. 
  

	 	(a)	Each Option Grant Agreement shall specify the number of shares of Common Stock to which it pertains. 

  

	 	(b)	Each Option Grant Agreement shall specify the Option Price, which, in the case of a Nonqualified Stock Option or an Incentive Stock Option, shall be not less than 100% of the Market
Value per Share on the Date of Grant or, in the case of an Incentive Stock Option granted to a 10% Shareholder, not less than 110% of the Market Value per Share on the Date of Grant. 

  

	 	(c)	Each Option Grant Agreement shall specify whether the Stock Option is intended to be an Incentive Stock Option or a Nonqualified Stock Option. 

  

	 	(d)	Each Option Grant Agreement may specify whether the Option Price will be payable (i) in cash or by check acceptable to the Company, (ii) by the transfer to the Company of
shares of Common Stock owned by the Grantee for at least six months having an aggregate fair market value per share at the date of exercise equal to the aggregate Option Price, or (iii) by a combination of such methods of payment; provided,
however, that the payment method described in clause (ii) shall not be available at any time that the Company is prohibited from purchasing or acquiring such shares of Common Stock. In the absence of any such specification, only the payment
method in clause (i) shall be permitted. Any Option Grant Agreement may provide for deferred payment of the Option Price from the proceeds of sale through a bank or broker of some or all of the shares to which such exercise relates.

  

	 	(e)	Each Option Grant Agreement shall specify the term of the Stock Option, which in the case of an Incentive Stock Option granted to a 10% Shareholder shall not be greater than five
years and for all other Stock Options shall not be greater than ten years. 

  

	 	(f)	Each Option Grant Agreement shall specify the required period or periods (if any) of continuous service by the Grantee with the Company or any Subsidiary and any other conditions to
be satisfied before the Stock Option or installments thereof will become exercisable, and any Option Grant Agreement may provide, or may be amended to provide for the earlier exercise of the Stock Option in the event of a Change in Control.

  

	 	(g)	Each Stock Option granted pursuant to this Section 4 shall be subject to the transfer restrictions set forth in Section 8. 

  

	 	(h)	Each Option Grant Agreement shall be in the form of a written instrument executed on behalf of the Company by the Chief Executive Officer or Chief Financial Officer (or another
officer designated by the Board of Directors or by the Stock Option Committee) and delivered to the Grantee and containing such further terms and provisions, consistent with the Plan, as the Committee may approve. 

 5. Stock Options for Grantees - Exempt Grants. The Special Stock Option Committee may from time to time authorize grants to any Grantee of options
to purchase shares of Common Stock upon such terms and conditions as it may determine in accordance with the provisions set forth below. Grants made by the Special Stock Option Committee pursuant to this Section 5 are intended to comply with
and otherwise satisfy the requirements of Rule 16b-3. To the extent that (i) any provision of the Plan applicable to an Option granted pursuant to this Section 5, or (ii) any act of the Board, Stock Option Committee or Special Stock
Option Committee would cause such Option to fail to satisfy or comply with any requirements of Rule 16b-3, such provision or act will be deemed null and void for purposes of such Option. 
  

	 	(a)	Each Option Grant Agreement shall specify the number of shares of Common Stock to which it pertains. 

  

 4 

	 	(b)	Each Option Grant Agreement shall specify the Option Price, which, in the case of a Nonqualified Stock Option or an Incentive Stock Option, shall be not less than 100% of the Market
Value per Share on the Date of Grant or, in the case of an Incentive Stock Option granted to a 10% Shareholder, not less than 110% of the Market Value per Share on the Date of Grant. 

  

	 	(c)	Each Option Grant Agreement shall specify whether the Option is intended to be an Incentive Stock Option or a Nonqualified Stock Option. 

  

	 	(d)	Each Option Grant Agreement shall specify whether the Option Price will be payable (i) in cash or by check acceptable to the Company, (ii) by the transfer to the Company
of shares of Common Stock owned by the Grantee for at least six months having an aggregate fair market value per share at the date of exercise equal to the aggregate Option Price, or (iii) by a combination of such methods of payment; provided,
however, that the payment method described in clause (ii) shall not be available at any time that the Company is prohibited from purchasing or acquiring such shares of Common Stock. In the absence of any such specification, only the payment
method in clause (i) shall be permitted. Any Option Grant Agreement may provide for deferred payment of the Option Price from the proceeds of sale through a bank or broker of some or all of the shares to which such exercise relates.

  

	 	(e)	Each Option Grant Agreement shall specify the term of the Option, which in the case of an Incentive Stock Option granted to a 10% Shareholder shall not be greater than five years
and for all other Options shall not be greater than ten years. 

  

	 	(f)	Each Option Grant Agreement shall specify the required period or periods (if any) of continuous service by the Grantee with the Company or any Subsidiary and any other conditions to
be satisfied before the Options or installments thereof will become exercisable, and any Option Grant Agreement may provide, or may be amended to provide for the earlier exercise of the Options in the event of a Change in Control.

  

	 	(g)	Each Option granted pursuant to this Section 5 shall be subject to the transfer restrictions set forth in Section 8. 

  

	 	(h)	Each Option Grant Agreement shall be in the form of a written instrument executed on behalf of the Company by the Chief Executive Officer or Chief Financial Officer (or another
officer designated by the Board of Directors or by the Special Stock Option Committee) and delivered to the Grantee and containing such further terms and provisions, consistent with the Plan, as the Special Stock Option Committee may approve.

 6. Options for Nonemployee Directors. 
  

	 	(a)	Each current Nonemployee Director will be granted a Nonqualified Stock Option to purchase 3,000 shares of Common Stock as of the last day of each fiscal quarter, provided that such
individual has served continuously as a Nonemployee Director during such quarter through the close of business on such date. Such Option grants shall commence as of the fiscal quarter-end immediately following the Commencement Date.

  

 5 

	 	(b)	Each Nonemployee Director newly elected or appointed to the Board on or subsequent to the date on which the Shareholders approve this Plan will be granted a Nonqualified Stock
Option, effective upon his or her initial election or other appointment to the Board, to purchase 5,000 shares of Common Stock, but issued not sooner than the Commencement Date. Consistent with paragraph 6(a), each such Nonemployee Director will
also be granted an additional Nonqualified Stock Option to purchase shares of Common Stock as of the last day of each fiscal quarter following his or her Initial Option grant in accordance with paragraph (a) of this Section 6, beginning on
the fiscal quarter-end immediately following the Commencement Date, provided that such individual has served continually as a Nonemployee Director during such quarter through the close of business on such date. 

  

	 	(c)	Each Option Grant Agreement shall specify the Option Price, which shall be equal to the Market Value on the Date of Grant. All Options granted pursuant to this Section 6 shall
contain the terms and conditions set forth in paragraphs (a), (d), (e), (f), (g) and (h) of Section 4. Options granted pursuant to this Section 6 are intended to comply with and otherwise satisfy the requirements of Rule 16b-3.
To the extent that (i) any provision of the Plan applicable to an Option granted pursuant to this Section 6 or (ii) any act of the Board, Stock Option Committee or Special Stock Option Committee would cause such Option to fail to
satisfy or comply with any requirements of Rule 16b-3, such provision or act will be deemed null and void for purposes of such Option. 

 7. Exercise of Options. 
  

	 	(a)	Any Option granted hereunder shall be exercisable according to the terms of the Plan and at such times and under such conditions as determined by the Committee and set forth in the
Option Grant Agreement. Unless the Committee provides otherwise, vesting of Options shall be tolled during any unpaid leave of absence. Options may not be exercised for a fraction of a share of Common Stock. 

  

	 	(b)	An Option shall be deemed exercised when the Company receives: 

  

	 	(i)	written or electronic notice of exercise (in accordance with the terms of the Option Grant Agreement) from the person entitled to exercise the Option, and 

 

	 	(ii)	full payment for the shares of Common Stock with respect to which the Option is exercised, in the form permitted by the Option Grant Agreement and the Plan.

  

	 	(c)	Shares issued upon exercise of an Option shall be issued in the name of the Grantee, or, if requested by the Grantee, in the name of the Grantee and his or her spouse. Until the
shares of Stock are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a shareholder shall exist with respect
to the Stock acquired upon exercise of the Option, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such shares of Common Stock promptly after the Option is exercised. No adjustment will be made for a
dividend or other right for which the record date is prior to the date the shares of Common Stock are issued, except as provided in Section 9. 

  

	 	(d)	Exercising an Option in any manner shall decrease the number of shares thereafter available, both for purposes of the Plan and for sale under the Option, by the number of shares as
to which the Option is exercised. 

  

	 	(e)	 If a Grantee received an Option as an employee or director of the Company and ceases to be an employee or director, as the case may be, of the Company, or if the
Grantee received an Option as an advisor or consultant to the Company and ceases to be such an advisor or consultant, other than 

  

 6 

	 	 
upon the Grantee’s death or Disability, the Grantee may exercise his or her Option within such period of time as is specified in the Option Grant
Agreement to the extent that the Option is vested on the date of termination. In the absence of a specified time in the Option Grant Agreement, the Option shall remain exercisable for three months following the Grantee’s termination (but in no
event later than the expiration of the term of such Option as set forth in the Option Grant Agreement). Notwithstanding the foregoing, except in the case of termination of employment in accordance with the retirement policies of the Company, if a
Grantee voluntarily terminates his employment or voluntarily terminates his status as an advisor or consultant, the Grantee may not exercise his or her Option following the date of termination. 

  

	 	(f)	If a Grantee ceases to be an employee, director, advisor or consultant as a result of the Grantee’s Disability, the Grantee may exercise his or her Option within such period of
time as is specified in the Option Grant Agreement to the extent the Option is vested on the date of exercise. In the absence of a specified time in the Option Grant Agreement relating to Disability, the Option shall remain exercisable and shall
continue to vest for 12 months following the Grantee’s termination (but in no event later than the expiration of the term of such Option as set forth in the Option Grant Agreement). 

  

	 	(g)	If a Grantee dies while he remains an employee, director, advisor or consultant of the Company, the Option may be exercised within such period of time as is specified in the Option
Grant Agreement to the extent that the Option is vested on the date of exercise (but in no event later than the expiration of the term of such Option as set forth in the Option Grant Agreement). In the absence of a specified time in the Option Grant
Agreement, the Option shall remain exercisable and shall continue to vest for 12 months following the Grantee’s death. The Option may be exercised by the executor or administrator of the Grantee’s estate or, if none, by the person(s)
entitled to exercise the Option under the Grantee’s Will or the laws of descent and distribution. 

  

	 	(h)	The Committee may at any time offer to buy out, for a payment in cash or shares of Common Stock, an Option previously granted based on such terms and conditions as the Committee
shall establish and communicate to the Grantee at the time that such offer is made. 

 8. Transferability. Except as
otherwise expressly provided in the Option Grant Agreement, or in any amendment to such agreement, no Option will be transferable by a Grantee other than by will or the laws of descent and distribution, and during the lifetime of the Grantee may be
exercised only by the Grantee. 
 9. Adjustments. The Board or the Stock Option Committee, with respect to Options granted under
Section 4, and the Board or the Special Stock Option Committee, with respect to Options granted under Section 5, shall make or provide for such adjustments in the maximum number of shares of Common Stock specified in Section 3, in the
number of shares of Common Stock covered by outstanding Options granted hereunder, in the Option exercise price applicable to any such Options or in the kind of shares covered thereby (including shares of another issuer), as the Board or such
Committee in its sole discretion, exercised in good faith, may determine is equitably required to prevent dilution or enlargement of the rights of Grantees that otherwise would result from any stock dividend, stock split, combination of shares,
recapitalization or other change in the capital structure of the Company, merger, consolidation, spin-off, reorganization, partial or complete liquidation, issuance of rights or warrants to purchase securities or any other corporate transaction or
event having an effect similar to any of the foregoing. Any fractional shares resulting from the foregoing adjustments may be eliminated. 
 10. Withholding of Taxes. To the extent that the Company is required to withhold federal, state, local or foreign taxes in connection with any benefit realized by a Grantee under the Plan, and the amounts available to the Company for
such withholding are insufficient, it will be a condition to the realization of such benefit that the Grantee make arrangements satisfactory to the Company for payment of the balance of such taxes required to be withheld. In addition, if permitted
by the Stock Option Committee with respect to Options granted under Section 4, or by the Special Stock Option Committee with respect to Options granted under Section 5, a Grantee may elect to 

  

 7 

 
have any withholding obligation of the Company satisfied, in whole or in part, by (i) authorizing the Company to withhold from shares of Common Stock to
be issued pursuant to any Option a number of shares with an aggregate Market Value (as of the date the withholding is effected) that would satisfy the minimum withholding amount due, or (ii) transferring to the Company shares of Common Stock
owned by the Grantee with an aggregate Market Value (as of the date the withholding is effected) that would satisfy the minimum withholding amount due. 
 11. Administration of the Plan. 
  

	 	(a)	The Plan will be administered by the Stock Option Committee with respect to Options granted under Section 4 and by the Special Stock Option Committee with respect to Options
granted under Section 5. For purposes of any action taken by either Committee, a majority of the members of that Committee will constitute a quorum, and the action of the members present at any meeting at which a quorum is present, or acts
unanimously approved in writing, will be the acts of such Committee. The Board of Directors as a whole shall administer the Plan with respect to Options granted under Section 6. 

  

	 	(b)	Subject to the allocation of administrative responsibilities set forth in Section 11(a), the Stock Option Committee and the Special Stock Option Committee have the full
authority and discretion to administer the Plan and to take any action that is necessary or advisable in connection with the administration of the Plan, including without limitation the authority and discretion to interpret and construe any
provision of the Plan or of any agreement, notification or document evidencing the grant of an Option. The interpretation and construction by the Stock Option Committee, the Special Stock Option Committee or the Board of Directors, as applicable, of
any such provision and any determination by the respective Committee pursuant to any provision of the Plan or of any such agreement, notification or document will be final and conclusive. No member of the Board or of either Committee will be liable
for any such action or determination made in good faith. 

  

	 	(c)	Notwithstanding the provisions of Section 11(b), if any authority, discretion or responsibility granted to the Special Stock Option Committee under the Plan would, if exercised
or discharged by the Special Stock Option Committee, cause the provisions of Section 5 or any Option granted under Section 5 to fail to satisfy the requirements of Rule 16b-3, such authority, discretion or responsibility may be exercised
by the Board to the same extent and with the same effect as if exercised by the Special Stock Option Committee; provided, however, that such act of the Board will not cause the provisions of Section 5 or any Option granted under Section 5
to fail to satisfy the requirements of Rule 16b-3 or cause any member of the Special Stock Option Committee to cease to be a Nonemployee Director for purposes of Rule 16b-3. 

 12. Amendments, Etc. 
  

	 	(a)	The Stock Option Committee, or the Special Stock Option Committee, as applicable, or the Board of Directors as to grants under Section 6, may, without the consent of the
Grantee, amend any agreement evidencing an Option granted under the Plan, or otherwise take action, to accelerate the time or times at which the Option may be exercised, to extend the expiration date of such Option, to waive any other condition or
restriction applicable to such Grantee or to the exercise of such Option, to reduce the exercise price of such Option, to amend the definition of a Change in Control to expand the events that would constitute a Change in Control, even if such
definition may be different from that contained in the Plan, and may amend any such agreement in any other respect with the consent of the Grantee. 

  

	 	(b)	 The Plan may be amended from time to time by the Stock Option Committee or the Board but may not be amended without further approval by the shareholders of the
Company if such Plan amendment would result in any grant or other transaction with respect to Options under Section 5 no longer satisfying the requirements of Rule 16b-3. Notwithstanding the foregoing, the 

  

 8 

	 	 
provisions of Section 6 that designate Nonemployee Directors eligible to receive Options and specify the amount, Option Price and timing of Option
grants may be amended only by the Board and may be amended no more than once every six months except to comply with changes in the Code, the Employee Retirement Income Security Act of 1974, as amended, or the rules and regulations thereunder. In the
event any law, or any rule or regulation issued or promulgated by the Internal Revenue Service, the Securities and Exchange Commission, the National Association of Securities Dealers, Inc., any stock exchange upon which the Common Stock is listed
for trading, or any other governmental or quasi-governmental agency having jurisdiction over the Company, the Common Stock or the Plan requires the Plan to be amended, or in the event Rule 16b-3 is amended or supplemented (e.g., by addition
of alternative rules) or any of the rules under Section 16 of the Act are amended or supplemented, in either event to permit the Company to remove or lessen any restrictions on or with respect to Options, the Board of Directors reserves the
right to amend the Plan to the extent of any such requirement, amendment or supplement, and all Options then outstanding will be subject to such amendment. 

  

	 	(c)	The Plan may be terminated at any time by action of the Board, but in any event will terminate on the tenth anniversary of the effective date of the Plan. The termination of the
Plan will not adversely affect the terms of any outstanding Option. 

  

	 	(d)	The Plan will not confer upon any Grantee any right with respect to continuance of employment or other service with the Company or any Subsidiary, nor will it interfere in any way
with any right the Company or any Subsidiary would otherwise have to terminate a Grantee’s employment or other service at any time. 

  

	 	(e)	The Plan shall be governed by and construed in accordance with the internal laws of the State of Georgia. 

  

			
	AMERICAN SOFTWARE, INC.
		
	By:	 	 /s/    James R. McGuone

		 	James R. McGuone, Secretary

  

 9

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