Document:

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                                                                   Exhibit 10.21

                              PAREXEL International

                       Nonqualified Deferred Compensation
                                 Plan Agreement

This document was prepared by and is proprietary to Suelthaus & Walsh, P.C. No
changes or modifications may be made to this document without the prior written
consent of Suelthaus & Walsh, P.C. In view of the degree of freedom Adopting
Employers shall have to use this Plan Agreement and the related forms, it is
expressly agreed and understood that no warranty whatsoever is provided by
Suelthaus & Walsh, P.C. for the improper application of the terms of the Plan
Agreement and related forms or if the Plan Agreement or any related form is
revised in anyway without the express written consent of Suelthaus & Walsh, P.C.
Accordingly, Suelthaus & Walsh, P.C. accepts no responsibility whatsoever for
the application and/or use of this Plan Agreement or the sufficiency or
interpretation thereof, and thus not for any direct or indirect consequences of
the application, use or interpretation of this Plan Agreement by Adopting
Employers or others.

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                TABLE OF CONTENTS

                                              Page

ARTICLE I PURPOSE AND SCOPE                     1

ARTICLE II DEFINITIONS                          1

ARTICLE III PARTICIPATION                       2

ARTICLE IV BENEFITS                             2

ARTICLE V TERMINATION OF EMPLOYMENT             4

ARTICLE VI ADMINISTRATION                       5

ARTICLE VII PAYMENT OF RETIREMENT BENEFITS      5

ARTICLE VIII GENERAL PROVISIONS                 6

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                                   ARTICLE I
                               PURPOSE AND SCOPE

1.1  PURPOSE

     The purpose of this Plan is to provide retirement benefits for certain
     selected Executives of the Adopting Employer, in combination with any other
     retirement benefit plans, agreements or arrangements, whether qualified or
     otherwise, offered by the Adopting Employer.

1.2  SCOPE

     This Plan is intended as a statement of agreement between certain selected
     Executives under which, in consideration of the continued satisfactory
     service of said Executives, the Adopting Employer agrees to pay, when due,
     certain retirement and other benefits. This Plan shall be binding on the
     Adopting Employer and any successors to the business of the Adopting
     Employer and shall inure to the benefit of the Participants and, if
     applicable, their spouses and beneficiaries.

     Nothing herein contained, and no action taken pursuant to the provisions of
     this Plan, shall create or be construed to create a trust of any kind nor a
     fiduciary relationship between the Adopting Employer and any Executive,
     Executive's surviving spouse or dependents, Executive's estate or
     Executive's beneficiaries or any other person.

     Any reserves or liabilities set up on the Adopting Employer's books of
     account with respect to any retirement or other benefits to be paid under
     the Plan shall continue for all purposes to be a part of the general funds
     or assets of the Adopting Employer. To the extent that any person acquires
     a right to receive payments from the Adopting Employer under this Plan,
     such right shall be no greater than the right of any unsecured general
     creditor of the Adopting Employer.

                                   ARTICLE II
                                  DEFINITIONS

Wherever used in this Plan, the following terms shall have the following
meanings, unless a different meaning is clearly required by the context.

2.1  "Adopting Employer" means each employer who adopts this Plan by executing
     an Adoption Agreement.

2.2  "Adoption Agreement" means the document executed by each Adopting Employer
     adopting the provisions of this Plan. The terms of this Plan as modified by
     the terms of an Adopting Employer's Adoption Agreement constitute a
     separate Plan to be construed as a single agreement. Each elective
     provision of the Adoption Agreement corresponds by section reference to the
     section of the Plan which grants the election.

2.3  "Compensation" shall mean the regular remuneration paid to an Executive for
     services rendered to the Adopting Employer as shown on the W-2 of the
     Executive for any given calendar year.

2.4  "Executive" means any highly compensated employee or member of a select
     group of management employees employed by the Adopting Employer, on the
     basis of an employer employee relationship.

2.5  "Normal Retirement Age" means the age specified in the Adoption Agreement.

2.6  "Normal Retirement Date" means the first day of the month coinciding with
     or next following a Participant's retirement on or after attaining Normal
     Retirement Age.

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2.7  "Participant" means any Executive who has become eligible to participate in
     the Plan in accordance with Article III, and who has not ceased to have
     rights to a Benefit hereunder.

2.8  "Plan" means the Nonqualified Deferred Compensation Plan as set forth
     herein, including the Adoption Agreement under which the Adopting Employer
     has elected to participate in this Plan. Each Adopting Employer shall
     designate the name of the Plan in section 2.8 of its Adoption Agreement.
     The Plan created by each Adopting Employer is a separate Plan, independent
     from the plan of any other employer adopting this Plan.

2.9  "Plan Effective Date" means the date set forth in section 2.9 of the
     Adoption Agreement.

2.10 "Plan Year" means the calendar year.

2.11 "Retirement Benefit" or "Benefit" means an amount, or a series of periodic
     amounts, payable to a Participant or such Participant's beneficiary under
     the Plan.

                                  ARTICLE III
                                 PARTICIPATION

3.1  ELIGIBLE EXECUTIVES

     Eligibility for participation in this Plan shall be limited to those
     Executives designated in writing by the Adopting Employer.

3.2  ENTRY DATE

     Each Participant under Section 3.1 shall enter the Plan on the date
     specified in writing by the Adopting Employer.

3.3. CESSATION OF PARTICIPATION BY ACTION OF ADOPTING EMPLOYER

     The Adopting Employer reserves the right to terminate the active
     participation of any designated Executive upon 30 days advance notice to
     the Executive. Such Executive shall thereupon become an inactive
     Participant.

                                   ARTICLE IV
                                    BENEFITS

4.1A PARTICIPANT CONTRIBUTIONS CREDIT

     A Participant may elect pursuant to this Plan each Plan Year to defer an
     amount of the Participant's Compensation up to the maximum percentage or
     fixed dollar amount of Compensation elected by the Adopting Employer under
     section 4.1A of the Adopting Agreement. Any such election shall be made
     within 30 days prior to January 1 of the Plan Year to which such election
     pertains, except that with respect to the first Plan Year a Participant is
     eligible to participate in this Plan, the election shall be made within 30
     days of the Participant becoming so eligible and shall be prospective
     commencing with the immediately succeeding payroll period. The Adopting
     Employer shall maintain a book account in the Plan for the Participant to
     which the Adopting Employer shall credit an amount equal to the amount of
     the Participant's deferral election.

4.1B ADOPTING EMPLOYER MATCHING CONTRIBUTION

     Each Plan Year during a Participant's participation in the Plan, the
     Adopting Employer shall credit to the book account established for the
     Participant a matching contribution to the extent provided in

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     and in an amount determined pursuant to the Adopting Employer's election
     under section 4.1B of the Adoption Agreement. No matching contribution
     shall be credited to the Participant with respect to any given Plan Year if
     the Participant terminates employment with the Adopting Employer prior to
     the end of such Plan Year for a reason other than retirement on or after
     Normal Retirement Age, death or to the extent the Adopting Employer has
     elected to provide a disability benefit pursuant to Section 4.4 of the
     Plan, total and permanent disability.

4.2  NORMAL RETIREMENT BENEFIT

     The amount of "Normal Retirement Benefit" shall be equal to the aggregate
     contributions credited on the Participant's behalf pursuant to the
     provisions of Sections 4.1A and 4.1B of the Plan, plus earnings
     determined in accordance with Section 4.3 of the Plan, as the Participant's
     retirement on or after attaining Normal Retirement Age. Upon attainment of
     Normal Retirement Age, the Participant shall be fully vested in the Benefit
     credited to the Participant's account; provided that the Participant is
     still employed by the Adopting Employer on such date.

4.3  CREDITING RATE

     The aggregate contributions credited under the Plan pursuant to Section
     4.1A and 4.1B on the Participant's behalf shall be credited with earnings
     (or losses) at the rate elected by the Adopting Employer under section 4.3
     of the Adoption Agreement. A Participant's account will continue to be
     credited with earnings (or losses) during the period the Participant is
     receiving Benefit payments. As used in this Plan, the term "earnings" shall
     include losses.

4.4  DISABILITY RETIREMENT BENEFIT

     To the extent the Adopting Employer elects to provide a disability Benefit
     in section 4.4 of the Adoption Agreement, a Participant who has not reached
     Normal Retirement Age shall become fully vested in the Benefit credited
     to the Participant's account in the event the Participant becomes totally
     and permanently disabled during the Participant's employment with the
     Adopting Employer. The Participant shall be entitled to commence receipt of
     the Participant's Benefit commencing on the first day of the first month
     after the Participant terminates employment with the Adopting Employer due
     to total and permanent disability. For purposes of this Plan, "total and
     permanent disability" or "disability" shall mean the Participant's
     inability, for a period of at least six consecutive months, to perform the
     essential functions of the Participant's duties, with or without reasonable
     accommodation by the Adopting Employer. The Participant's Benefit shall be
     paid over the number of years specified by the Adopting Employer in Section
     7.3 of the Adopting Agreement.

4.5  DEATH OF A PARTICIPANT BEFORE COMMENCEMENT OF RETIREMENT BENEFIT

     If a Participant dies before payment of Benefits commence hereunder, the
     Participant shall become fully vested and the Participant's Benefits shall
     be paid to the Participant's beneficiaries in a lump sum as soon as
     practicable after the Adopting Employer receives notice of the
     Participant's death. In addition, the Participant's beneficiaries shall
     receive any pre-retirement death benefit elected by the Adopting Employer
     in section 4.5A of the Adoption Agreement. Any such pre-retirement death
     benefits elected by the Adopting Employer in section 4.5A of the Adoption
     Agreement shall be funded in the manner elected by the Adopting Employer in
     section 4.5B of the Adoption Agreement.

4.6  DEATH OF PARTICIPANT AFTER COMMENCEMENT OF BENEFIT

     If a Participant dies after commencing to receive any Benefit under the
     Plan, the Participant's beneficiaries shall receive the remaining payments
     due to the Participant, if any, in the same manner as such payment of
     Benefits would have been made to the Participant had the Participant
     survived.

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4.7  DESIGNATION OF BENEFICIARY

     The Participant shall have the right, at any time, to submit in a form
     provided by the Adopting Employer, a written or electronic designation of
     primary and secondary beneficiaries to whom payment under this Plan shall
     be made in the event of the Participant's death prior to complete
     distribution of the Benefits due and payable under this Plan. Each
     beneficiary designation shall become effective only when receipt thereof is
     acknowledged in writing or electronically by the Adopting Employer. In the
     event a Participant does not designate a beneficiary, any distribution of
     Benefits due under this Plan after the Participant's death shall be paid to
     the Participant's surviving spouse, if any, otherwise to the Participant's
     estate.

4.8  HARDSHIP DISTRIBUTION

     In the event a Participant suffers a financial hardship (as hereinafter
     defined), the Adopting Employer may, if it deems advisable in its sole and
     absolute discretion, distribute to or utilize on behalf of the Participant
     as a hardship benefit (the "Hardship Benefit") any portion of the
     Participant's deferred contributions (but not earnings) credited to the
     Participant's account pursuant to Section 4.1A of the Plan as of the date a
     Hardship Benefit is distributed or utilized at such times as the Adopting
     Employer shall determine, and the Participant's Benefit shall be reduced by
     the amount so distributed and/or utilized. No Hardship Benefit shall
     include any portion of the Adopting Employer's matching contributions or
     earnings thereof. "Financial Hardship" shall mean dire, unforseen,
     financial emergency of the Participant which cannot be reasonably relieved
     by reimbursement by insurance or otherwise, liquidation of the
     Participant's assets to the extent that such liquidation would not in
     itself cause a financial hardship and which is caused by temporary or
     permanent disability or incapacity, medical or educational expenses, the
     purchase or maintenance of a residence, or a material reduction in family
     income.

                                   ARTICLE V
                           TERMINATION OF EMPLOYMENT

5.1  TERMINATION ON OR AFTER RETIREMENT DATE

     Subject to Section 8.4, a Participant who terminates employment with the
     Adopting Employer on or after the Participant's Normal Retirement Age shall
     have a right to receive such Participant's Normal Retirement Benefit
     commencing on the Participant's Normal Retirement Date.

5.2  TERMINATION PRIOR TO RETIREMENT DATE

     Subject to the provisions of Section 8.4, if a Participant terminates
     employment with the Adopting Employer prior to Normal Retirement Age for a
     reason other than death or, to the extent the Adopting Employer has elected
     a disability benefit under section 4.4 of the Adoption Agreement,
     disability, the Participant shall be entitled to receive an amount equal to
     the sum of (i) the Participant's deferral contributions credited to the
     Participant's account pursuant to Section 4.1A of the Plan and earnings
     credited on such amounts under Section 4.3 of the Plan, plus (ii) the
     Participant's vested interest in the aggregate Adopting Employer matching
     contributions credited to the Participant's account pursuant to Section
     4.1B of the Plan and earnings credited on such amounts under Section 4.3 of
     the Plan. Distribution of the amount due under this Section 5.2 shall
     commence on the first date of the first month following the Participant's
     termination of employment with the Adopting Employer and, unless the
     Adopting Employer elects to accelerate payments pursuant to Section 7.3 of
     this Plan, shall continue for the period elected by the Adopting Employer
     in section 7.3 of the Adoption Agreement.

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5.3  VESTING

     A Participant shall always be 100% vested in the Participant's deferral
     contributions credited to the Participant's account pursuant to Section
     4.1A of the Plan and earnings thereon. A Participant's vesting in the
     Adopting Employer's matching contributions and earnings thereon shall be
     determined pursuant to the vesting schedule elected by the Adopting
     Employer in section 5.3A of the Adoption Agreement. Years of vesting credit
     shall be determined based on the Adopting Employer's election in section
     5.3B of the Adoption Agreement.

                                   ARTICLE VI
                                 ADMINISTRATION

6.1  This Plan shall be administered and interpreted by the Adopting Employer,
     whose decisions shall be final, conclusive and binding, except for any
     action taken pursuant to Section 8.4.

6.2  Rivenet.Com, Inc. {"RIVENET.COM") will assist the Adopting Employer with
     administrative matters and will act as the third party administrator for
     the Plan. RIVENET.COM shall have no administrative discretion or authority
     and is not a fiduciary with respect to the Plan. Use of this Plan document
     is conditioned upon engagement and continued use of RIVENET.COM for
     administrative services pertaining to the Plan.

                                  ARTICLE VII
                         PAYMENT OF RETIREMENT BENEFITS

7.1  SURVIVAL

     Payment of any Benefit hereunder which is contingent upon the survival of
     the payee shall cease with the last payment due to the payee before the
     payee's death.

7.2  ALIENATION OF BENEFITS PROHIBITED

     No benefit payable at any time under the Plan shall be subject in any
     manner to alienation, anticipation, sale, transfer, assignment, pledge,
     attachment or encumbrance of any kind, except as required by law. Neither
     shall any Benefit payable at any time under the Plan be subject in any
     manner to the debts or liabilities of any person entitled to such Benefit,
     nor shall the Adopting Employer be required to make any payments toward
     such debts or liabilities.

7.3  DURATION AND FORM OF BENEFITS

     Except as otherwise noted, the duration and form of benefits under this
     Plan shall be payable in accordance with all the terms and conditions of
     this Plan, including those elected by the Adopting Employer in the Adoption
     Agreement such as the vesting schedule thereunder and the number of years
     over which the Benefit is to be paid. The foregoing notwithstanding, a
     Participant who retires on or after the Participant's Normal Retirement
     Age, may request that the Participant's Retirement Benefit under this Plan
     be paid in a lesser number of installments than set forth in the Adoption
     Agreement. The Adopting Employer may grant or deny any such request in its
     sole discretion. Installment payments made under this Plan will fluctuate
     in amounts as necessary to take into account the additional crediting of
     earnings pursuant to Section 4.3 of the Plan after the commencement of
     Benefit payments. In general, the amount of each annual installment shall
     be equal to the remaining value of the Participant's Benefit divided by the
     number of remaining installments due the Participant, subject to any rights
     of offset or other adjustments provided for under the terms of this Plan.

<PAGE>

     Nothing contained in this Plan to the contrary, the Adopting Employer, in
     its sole discretion may accelerate any payments due to a Participant or a
     Participant's beneficiaries.

7.4  UNCLAIMED BENEFITS

     Any of the Benefits hereunder which are unclaimed, including outstanding
     checks or direct deposits, shall be forfeited to the Adopting Employer.

7.5  WITHHOLDING

     The Adopting Employer shall have the right to deduct from any Benefit any
     federal, state, or local taxes required by law to be withheld.

                                  ARTICLE VIII
                               GENERAL PROVISIONS

8.1  FUNDING

     The Plan is intended as an unfunded plan of supplementary retirement
     Benefits. The Adopting Employer intends to establish appropriate reserves
     for the Plan on its books of account in accordance with generally accepted
     accounting principles. Such reserves shall be, for all purposes, part of
     the general funds of the Adopting Employer and no Participant, spouse,
     beneficiary, or other person claiming a right under the Plan shall have any
     interest, right or title to such reserves.

8.2  RIGHT TO AMEND, SUSPEND OR TERMINATE

     The Adopting Employer reserves the right at any time and from time to time
     to amend, suspend or terminate the Plan by action of its Board of Directors
     without the consent of any Participant, spouse, beneficiary, or other
     person claiming a right under the Plan. No amendment of the Plan shall
     reduce the vested Benefits of any Participant as of the date of amendment.

8.3  EFFECT OF TERMINATION

     In the event that the Plan is terminated, Benefits accrued and payable to
     Participants, former Participants entitled to Benefits, retired
     Participants and spouses or beneficiaries shall be limited to amounts
     vested and accrued as of the date of termination and shall not be subject
     to crediting of any further earnings. All such vested and accrued amounts
     shall be distributed to Participants, former Participants entitled to
     Benefits, retired Participants and spouses or beneficiaries in a lump sum
     as soon as administratively feasible after the termination of the Plan.

     Notwithstanding the preceding provisions of this Section 8.3 or of Section
     8.2, the Board of Directors of the Adopting Employer may, in its sole
     discretion, reduce or eliminate Benefits as it deems necessary in order to
     protect the financial security of the Adopting Employer.

8.4  RIGHTS TO BENEFITS

     No person shall have any right to a Benefit under the Plan except as such
     Benefit has accrued to such person in accordance with the terms of the
     Plan, and then such right shall be no greater than the rights of any
     unsecured general creditor of the Adopting Employer. Neither the
     establishment of the Plan, the designation of any Participant, nor any
     provisions of the Plan shall be construed as giving a Participant the right
     to be retained in the employment of the Adopting Employer or as an
     Executive of the Adopting Employer.

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     The Adopting Employer, at its discretion, may acquire an insurance policy
     of policies insuring the life of a Participant from which it can satisfy
     its obligations to make payments pursuant to this Plan. However, it is
     expressly understood that such contract (or contracts) if acquired, does
     not create any account or funds separate from the ordinary assets of the
     Adopting Employer, and no Participant, Participant's spouse, or
     Participant's beneficiary may look to any such contract as the funds from
     which benefits under this Plan are to be paid. Any such contract so
     acquired for the convenience of the Adopting Employer shall be the sole and
     exclusive property of the Adopting Employer, with the Adopting Employer
     named as applicant owner, and beneficiary of any life insurance contract
     payment; provided further, any such contract shall not be held in trust or
     as collateral security for the benefit of a Participant, a Participant's
     spouse, or a Participants beneficiary, nor is any representation made
     herein that such contract, if acquired, will be used to provide benefits
     under this Plan. No Participant, Participant's spouse, or Participant's
     beneficiary shall have any beneficial ownership interest in, or preferred
     or other claim against, the life insurance contract, if acquired.

     Notwithstanding any other provisions of this Plan, if an Executive shall be
     discharged for reason of acts of gross misconduct, fraud, dishonesty,
     larceny, misappropriation or embezzzlement committed against the Adopting
     Employer, all of such Executive's rights to earnings on the Participant's
     deferral contributions and to the Adopting Employer's matching
     contributions and earnings thereon shall be forfeited. In addition,
     Benefits other than distribution of the Participant's deferral
     contributions shall cease to be paid to any Participant who discloses
     confidential information or trade secrets concerning the Adopting Employer
     without the Adopting Employer's consent, or engages in any activity that is
     materially damaging to the Adopting Employer.

8.5  CONSTRUCTION

     The law of the state of the Adopting Employer's principal place of business
     will determine all questions arising with respect to the provisions of this
     Plan except to the extent superseded by Federal law.

8.6  TITLES

     The titles of the Articles and Sections herein are included for convenience
     of reference only and shall not be construed as a part of this Plan, or
     have any effect upon the meaning of the provisions hereof. Unless the
     context requires otherwise, the singular shall include the plural; the
     masculine gender shall include the feminine and vice versa; and such words
     as "herein", "hereinafter", "hereof" and "hereunder" shall refer to this
     instrument as a whole and not merely to the subdivision in which such words
     appear.

8.7   SEPARABILITY

     If any term or provision of this Plan as presently in effect or as amended
     from time to time, or the application thereof to any payments or
     circumstances, shall to any extent be invalid or unenforceable, the
     remainder of the Plan, and the application of such term or provision to
     payments or circumstances other then those as to which it is invalid or
     unenforceable, shall not be affected thereby, and each term or provision of
     the Plan shall be valid and enforced to the fullest extent permitted by
     law.

8.8  RIGHT OF OFFSET

     If, at such time as a Participant becomes entitled to benefits under this
     Plan, such Participant has any debt, obligation or other liability
     representing an amount owing to the Adopting Employer, and if such debt,
     obligation or other liability is due and owing at the time distribution is
     due hereunder,

<PAGE>

     the Adopting Employer may offset the amount owing against the amount of
     benefits otherwise distributable hereunder.

8.9  CLAIM FOR BENEFITS

     Subject to and in compliance with the specific procedures contained in the
     applicable regulations under the Employee Retirement Income Security Act of
     1974, as amended: (i) any decision by the Adopting Employer denying a claim
     by a Participant or a Participant's beneficiary for Benefits under this
     Plan shall be stated in writing and delivered or mailed to such Participant
     or such beneficiary; (ii) each such notice shall set forth the specific
     reasons for the denial, written to the best of the Adopting Employer's
     ability in a manner that may be understood without legal or actuarial
     counsel; and (iii) the Adopting Employer shall afford a reasonable
     opportunity to such Participant or such beneficiary for a full and fair
     review of the decision denying such claim.

This document was prepared by and is proprietary to Suelthaus & Walsh, P.C. No
changes or modifications may be made to this document without the prior written
consent of Suelthaus & Walsh, P.C. In view of the degree of freedom Adopting
Employers shall have to use this Plan Agreement and the related forms, it is
expressly agreed and understood that no warranty whatsoever is provided by
Suelthaus & Walsh, P.C. for the improper application of the terms of the Plan
Agreement and related forms or if the Plan Agreement or any related form is
revised in anyway without the express written consent of Suelthaus & Walsh, P.C.
Accordingly, Suelthaus & Walsh, P.C. accepts no responsibility whatsoever for
the application and/or use of this Plan Agreement or the sufficiency or
interpretation thereof, and thus not for any direct or indirect consequences of
the application, use or interpretation of this Plan Agreement by Adopting
Employers or others.

<PAGE>

                               ADOPTION AGREEMENT
                                     TO THE
                     NONQUALIFIED DEFERRED COMPENSATION PLAN
                                FOR PARTICIPANTS

2.5   Normal Retirement Age
      Normal Retirement Age: 65

2.8   Plan Name
      The name of the Plan shall be the: PAREXEL International - Deferred
      Compensation Plan

2.9   Effective Date
      The Effective Date of the Plan shall be: December 1, 2001

4.1A  Participant Deferral Contributions . Maximum
      100.00% of each Participant's Compensation

4.3   Crediting Rate
      Mirror the aggregate rate of return of the investment options selected by
      the Participant

4.4   Disability Payout
      Yes - Participants shall be entitled to a disability retirement benefit
      pursuant to Section 4.4 of the Plan.

4.5A  Pre-Retirement Death Benefit
      None

4.58  Pre-Retirement Death Benefit Funding
      Not Applicable.

7.3   Distribution Period
      Years of Benefit payments: 15

This document was prepared by and is proprietary to Suelthaus & Walsh, P.C. No
changes or modifications may be made to this document without the prior written
consent of Suelthaus & Walsh, P.C. In view of the degree of freedom Adopting
Employers shall have to use this Plan Agreement and the related forms, it is
expressly agreed and understood that no warranty whatsoever is provided by
Suelthaus & Walsh, P.C. for the improper application of the terms of the Plan
Agreement and related forms or if the Plan Agreement or any related form is
revised in anyway without the express written consent of Suelthaus & Walsh, P.C.
Accordingly, Suelthaus & Walsh, P.C. accepts no responsibility whatsoever for
the application and/or use of this Plan Agreement or the sufficiency or
interpretation thereof, and thus not for any direct or indirect consequences of
the application, use or interpretation of this Plan Agreement by Adopting
Employers or others.Prepared by R.R. Donnelley Financial -- Employment Agreement dated 9/25/02

 Exhibit 10.1 
  
 EMPLOYMENT AGREEMENT 
  
 THIS AGREEMENT is entered into as of the 25th day of
September, 2002 (the “Effective Date”), by and between Paul S. Pressler (the “Executive”) and The Gap, Inc., a Delaware corporation (the “Company”). 
  
 Section 1.    Term of Agreement 
  
 Unless
earlier terminated as provided below, the term of this Agreement shall begin on the Effective Date and shall conclude on the fifth anniversary of the Effective Date (the “Term”). 
  

Section 2.    Duties and Scope of Employment 
  
 (a)  Position.    The Company will employ Executive in the positions of Chief Executive Officer and President (“CEO”) commencing on the Effective Date. Executive shall be given
such duties, responsibilities and authorities as are appropriate to Executive’s position. The Chairman of the Company’s Board of Directors (the “Board”) will recommend to the Board that Executive be made a Director of the Board.

  
 (b)  Obligations.    Executive shall devote Executive’s full business
efforts and time to the business and affairs of the Company as needed to carry out Executive’s duties and responsibilities, reporting to the Board. 
  
 Section 3.    Base Compensation and Initial Bonus 
  
 (a)  Base Compensation.    The Company agrees to pay Executive a base salary at an annual rate of $1,500,000 (“Base Compensation”). Such salary shall be payable in accordance with the
standard payroll procedures of the Company and shall be subject to annual review beginning in April 2004. 
  
 (b)  Initial Bonus.    Within thirty (30) days after the Effective Date, Executive shall receive a cash bonus of $885,000.00. 
  
 Section 4.    Incentive Compensation 
  
 Beginning with fiscal year 2003, Executive shall be eligible to participate in the Company’s Executive Management Incentive Award Program (“MICAP”). Executive’s eligibility will continue so long as Executive
remains as an executive of the Company. MICAP provides cash incentives as a reward for achieving multiple company financial goals. Subject to any shareholder approval required to make the awards eligible for the performance based compensation
exception to the deductibility limit under section 162(m) of the Internal Revenue Code, the awards shall be based upon a target of 125% of the Base Compensation and a maximum of 250% of Base Compensation. For fiscal year 2003, the actual Incentive
Compensation payment (payable in April 2004) shall be at least $1,875,000. 
 

  
 Section 5.    Equity Compensation 
  
 (a)  Stock Option Grant.    Executive will be granted options on the Effective Date to purchase a
total of 5,000,000 shares of the Company’s common stock with the per share exercise prices indicated in the table below. All option grants shall have a 10-year term and are subject to Executive’s continued employment by the Company. Option
grants A through E shall vest 20% on the first anniversary of the Effective Date and 1/48th (2.083%) of
the remaining balance each month thereafter for the next 48 months. Option grant F shall vest 100% on the sixth anniversary of the Effective Date. Option grant G shall vest 100% on the seventh anniversary the Effective Date. 
  
 
	  	    	 Number of Shares Subject to Option
 
	    	 Per Share Exercise Price (as a Percentage of Fair Market Value at Grant)
 

	 A
 	    	 2,000,000
 	    	 50%
 
	 B
 	    	 500,000
 	    	 100%
 
	 C
 	    	 500,000
 	    	 125%
 
	 D
 	    	 500,000
 	    	 150%
 
	 E
 	    	 500,000
 	    	 175%
 
	 F
 	    	 500,000
 	    	 100%
 
	 G
 	    	 500,000
 	    	 100%
 

 
  
 Additional terms regarding all such grants shall be as set forth in the Company’s
standard stock option agreement generally applicable to senior executives and in Section 8. 
  
 (b)  Annual Long-Term Incentives.    Beginning in April 2004, Executive shall be eligible for additional stock option grants under the Company’s long-term incentive program for senior
executives. 
  
 (c)  Additional Terms.    All stock option grants are subject to
Executive’s continued employment by the Company. Subject to Sections 8(a) and 9(c) and the option’s term, Executive shall have three months from the date Executive ceases to be an employee in which to exercise any options. 

 
 Section 6.    Executive Benefits 
  
 (a)  In General.    Executive shall be eligible to participate in all the Company’s benefit plans and compensation programs applicable to senior executives,
including (without limitation) deferred compensation plans, incentive or other bonus plans, life, disability, health, accident and other insurance programs, and similar plans or programs. The
 
 

 
Company reserves the right to alter, amend or terminate any of its programs or plans, in whole or in part, at any time and for any reason. 
  

(b)  Paid Time Off.    Executive shall be entitled to paid time off (encompassing vacation, sick leave and personal time) under
the Company’s policy for senior executives (currently eligibility is 30 business days per year). 
  
 (c)  Relocation Benefits.    The Company shall pay for or reimburse Executive for the reasonable expenses of Executive’s relocation to the San Francisco Bay Area, with any necessary tax
restoration payments. The Company shall pay the reasonable costs of rental housing during Executive’s search for permanent housing in the San Francisco Bay Area. 
  
 Section 7.    Business Expenses and Travel 
  
 Executive shall be authorized to incur and shall be reimbursed for all necessary and reasonable travel, entertainment and other business expenses in connection with Executive’s duties hereunder. 
  
 Section 8.    Termination Without Cause 
  
 In the event that Executive’s employment as CEO is terminated during the Term by the Company due to a change in control or for any reason other than Cause as defined in Section 9(a) (the
“Termination Decision”), subject to the provisions of Sections 8(b)-(e), Executive shall be entitled to receive the payments and benefits described in Section 8(a). 
  
 (a)  Continuation Pay and Benefits.    Executive shall remain a non-executive employee of the Company and shall receive the following
during the twenty-four (24) months following the date of the Termination Decision (the “Continuation Period”): 
  
 (1)  Executive’s Base Compensation in effect on the date of the Termination Decision; 
  
 (2)  The Incentive Compensation Executive would otherwise have received based on the Company’s actual financial performance during the Continuation Period, up to a maximum payment equal
to 100% of Executive’s Base Compensation on the date of the Termination Decision, payable if and when paid to other executives; 
  
 (3)  The vesting of those stock options granted to Executive in Section 5(a) that would vest during the anticipated Continuation Period will accelerate to the date of the Termination Decision
and Executive will have three months from the date of the Termination Decision in which to exercise such accelerated options. All stock options with vesting dates two years beyond the date of the Termination Decision will be cancelled immediately;
and 
  
 (4)  Health insurance coverage as provided to other senior executives by the
Company. 
 

  
 (b)  Release of Claims.    As a condition to
the receipt of the payments and benefits described in this Section, Executive shall be required to execute a release of all claims arising out of Executive’s employment and the termination of employment. 
  
 (c)  Conditions to Receipt of Payments and Benefits.    The obligation of the Company to provide the
payments and benefits described in this Section shall cease, and all unvested stock options shall terminate in the event and at such time as Executive breaches (unless immaterial) any of the provisions of this Section 8 or of Section 10 or 11, or in
the event that Executive’s employment is terminated under any of the provisions contained in Section 9. 
  
 (d)  Other Employment.    In the event Executive accepts other employment with a competitor of the Company (defined as another company primarily engaged in the apparel design or apparel retail
business or any retailer with apparel sales in excess of $500 million annually) during the otherwise anticipated Continuation Period, Executive will immediately cease to be an employee and shall forfeit all unaccrued pay and benefits contemplated by
this Section 8 (except as otherwise contemplated by Section 8(a)(3)). In the event that Executive accepts any other employment with a for-profit enterprise which is not a competitor of the Company (“New Employment”) during the otherwise
anticipated Continuation Period: (i) Executive will immediately cease to be an employee of the Company as of the date of such acceptance (“New Employment Date”); (ii) Executive will continue to receive payments during the otherwise
anticipated Continuation Period equal to Executive’s Base Compensation as set forth in Section 8(a)(1), subject to the provisions of Sections 8(b) and 8(c), and further provided that Company’s obligations to make such payments to Executive
under this Section will be reduced by the amount of any cash compensation Executive receives for other services during the otherwise anticipated Continuation Period; (iii) Executive will cease to receive all other payments and benefits, including
Incentive Compensation and health insurance coverage under Sections 8(a)(2) and 8(a)(4) and any other options not vested as of the New Employment Date; and (iv) Executive agrees to notify the Company’s General Counsel in writing of his New
Employment and all related financial terms on or before the New Employment Date. 
  
 (e)  Other
Compensation.    In the event that Executive accepts any other compensation during the Continuation Period for other services (e.g. services provided to a charitable organization or as a Director, consultant or otherwise),
Executive will continue to receive the Continuation Pay and Benefits as a non-executive employee as set forth in Section 8(a), subject to the provisions of Sections 8(b)-8(d), and provided that Company’s obligations to make such payments will
be reduced by the amount of any cash compensation Executive receives for such other services and that Executive will promptly notify the Company’s General Counsel in writing of the financial terms. 
  
 Section 9.    Other Employment Terminations 
  
 (a)  Termination for Cause.    If the Company terminates Executive’s employment for Cause at any time, Executive shall receive no further compensation or
benefits of any kind as of the effective date of the termination. 
 

  
 Definition of Cause.    For all purposes under this
Agreement, “Cause” shall mean termination of Executive’s employment based on a good faith determination by the Board that Executive’s employment be terminated for any of the following reasons: (1) Executive’s participation
in, indictment, conviction or admission of any crime involving dishonesty or moral turpitude; (2) Executive’s participation in any act of fraud or intentional malfeasance against the Company; (3) Executive’s material violation of the
Company’s Code of Business Conduct; (4) Executive’s material breach of any provision of this Agreement; (5) Executive’s use of alcohol or drugs which interferes with the performance of Executive’s duties under this Agreement or
which compromises the integrity and reputation of the Company, its employees or products; or (6) Executive’s absence from employment for a period of more than four (4) weeks in violation of Company policies and without prior notice to the Board
of Directors. 
  
 (b)  Voluntary Termination by Executive.    If Executive
voluntarily terminates Executive’s employment at any time, Executive shall receive no further compensation or benefits of any kind after the effective date of the termination. 
  
 (c)  Termination by Death or Disability.    In the event that Executive’s employment with the Company is terminated due to death
or disability (as determined under the Company’s long term disability plan), Executive (or Executive’s beneficiaries or estate) shall be entitled to the Company’s applicable death and disability compensation and benefits payable under
the Company’s death and disability programs, including, but not limited to death or disability insurance benefits and, in the event of death, the ability to exercise outstanding, unvested stock options (which were granted at least one year
prior to death) until the earlier of one year after the date of death or the fixed period provided by the applicable stock option agreement (so long as such benefits are provided in the relevant stock option agreement). 
  
 Section 10.    Confidential Information 
  
 (a)  Acknowledgement.    The Company and Executive acknowledge that the services to be performed by Executive under this Agreement are unique and extraordinary and
that, as a result of Executive’s employment, Executive will be in a relationship of confidence and trust with the Company and will come into possession of “Confidential Information” (1) owned or controlled by the Company, (2) in the
possession of the Company and belonging to third parties or (3) conceived, originated, discovered or developed, in whole or in part, by Executive. As used herein “Confidential Information” includes trade secrets and other confidential or
proprietary business, technical, personnel or financial information, whether or not Executive’s work product, in written, graphic, oral or other tangible or intangible forms, including but not limited to specifications, samples, records, data,
computer programs, drawings, diagrams, models, vendor or customer names, ID’s, business or marketing plans, studies, analyses, projections and reports, communications by or to attorneys (including attorney-client privileged communications),
memos and other materials prepared by attorneys or under their direction (including attorney work product), and software systems and processes. Any information that is not readily available to the public shall be considered to be a trade secret and
confidential and proprietary, even if it is not specifically marked as such, unless the Company advises
 
 

 
Executive otherwise in writing. This Section shall apply indefinitely, both during and after the Term. 
  
 (b)  Nondisclosure.    Executive agrees that Executive will not, without the prior written consent of the Company’s General Counsel, directly or indirectly use
or disclose to any person any information which Executive knows or should know is Confidential Information, during or after Executive’s employment, except as may be necessary in the ordinary course of performing Executive’s duties.
Executive will keep the Confidential Information in strictest confidence and trust. Executive shall execute and abide by the Company’s confidentiality agreement. This Section shall apply indefinitely, both during and after the Term.

  
 (c)  Surrender Upon Termination.    Executive agrees that in the event of
termination of Executive’s employment as CEO for any reason, Executive will immediately deliver to the Company all property belonging to the Company, including all documents and materials of any nature pertaining to Executive’s work with
the Company, and will not take with Executive any documents, materials or property of any description, or any reproduction thereof of any description, containing or pertaining to any Confidential Information. 
  
 (d)  No Other Agreements.    Executive represents and warrants that: 1) Executive does not have any
other agreements, relationships or commitments to any other person or entity that conflicts with this Agreement or with Executive’s ability to perform his obligations under this Agreement; and (2) Executive will not disclose to the Company, or
use, or persuade any other Company employee to use, any proprietary information or trade secrets of a prior employer or other person or entity. 
  
 Section 11.    Other Responsibilities of Executive 
  
 (a)  No Other Employment.    While employed as an executive of the Company, Executive will not, directly or indirectly, whether as principal, agent, employee, employer, consultant, partner or
otherwise, engage in, participate in, or assist in the management of, any other business or services (other than for Executive’s personal passive investments or for a charitable organization), without prior written authorization from the
Chairman of the Board. Executive further agrees that in no event will he compete in any way, directly or indirectly, with the Company’s business while an employee in any capacity. 
  
 (b)  Agreement Not to Solicit.    While an employee of the Company and for one year thereafter, Executive will not directly or
indirectly through any other entity or person, hire or attempt to hire, call upon or solicit or attempt to call upon or solicit, any officer, director, executive, or employee at the Manager level or above of the Company or any of its affiliates.

  
 (c)  Abide by Company Policies.    Executive agrees to abide by and comply
with all applicable Company policies including, but not limited to, those contained in the Code of Business Conduct. 
 

  
 Section 12.    Remedies 
  

It is specifically understood and agreed that any breach of the provisions of Section 10 or 11 of this Agreement is likely to result in irreparable injury to the
Company and that the remedy at law alone will be an inadequate remedy for such breach, and that in addition to any other remedy it may have, the Company shall be entitled to enforce the specific performance of this Agreement by Executive and to
obtain both temporary and permanent injunctive relief without the necessity of proving actual damages. 
  
 Section
13.    Severable Provisions 
  
 The provisions of this Agreement are severable and the
invalidity of any one or more provisions shall not affect the validity of any other provision. In the event that a court of competent jurisdiction shall determine that any provision of this Agreement or the application thereof is unenforceable in
whole or in part because of the duration or scope, the parties agree that the court in making such determination shall have the power to reduce the duration and scope of such provision to the extent necessary to make it enforceable and that the
Agreement in its reduced form shall be valid and enforceable to the full extent permitted by law. 
  
 Section
14.    Miscellaneous Provisions 
  
 (a)  Waiver.    No
provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by Executive and by the Chairman of the Board or his or her designee. No waiver by either party of
any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time. 
  
 (b)  Whole Agreement.    No agreements, representations or understandings (whether oral or written
and whether express or implied) that are not expressly set forth in this Agreement have been made or entered into by either party. Executive acknowledges and agrees that this Agreement supersedes in its entirety any other proposal or agreement
regarding Executive’s employment by the Company. 
  
 (c)  Notice.    Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by U.S.
registered or certified mail, return receipt requested and postage prepaid. In the case of Executive, mailed notices shall be addressed to Executive at the home address that Executive most recently communicated to the Company in writing. In the case
of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of the Company’s General Counsel. 
  
 (d)  Choice of Law.    The laws of the State of California, irrespective of California’s choice-of-law principles, shall govern
the validity, interpretation, construction and performance of this Agreement. 
  
 (e)  No Assignment of
Benefits.    The rights of any person to payments or benefits under this Agreement shall not be made subject to option or assignment, either by voluntary or involuntary assignment or by operation of law, including (without
limitation) bankruptcy,
 
 

 
garnishment, attachment or other creditor’s process, and any action in violation of this Section 14(e) shall be void. 
  
 (f)  Limitation of Remedies.    If Executive’s employment terminates for any reason, Executive shall not be entitled to any
payments, benefits, damages, awards or compensation of any kind other than as provided by this Agreement. 
  
 (g)  Employment Taxes.    All payments made pursuant to this Agreement shall be subject to withholding of applicable taxes. 
  
 (h)  Discharge of Responsibility.    The payments under this Agreement, when made in accordance with the terms of this Agreement, shall
fully discharge all responsibilities of the Company to Executive that existed at the time of termination of Executive’s employment. 
  
 (i)  Attorney and Consultant Fees.    The Company will reimburse Executive for all reasonable fees incurred in the negotiation and preparation of this Agreement, up to $25,000.00.

  
 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by the Chairman
of the Board, as of the day and year above written. Executive has consulted (or has had the opportunity to consult) with Executive’s own counsel (who is other than the Company’s counsel) prior to execution of this Agreement. 

 
 
	 EXECUTIVE
 
	 
	 /S/    PAUL S. PRESSLER
 

	 Paul S. Pressler
 
	 
	 THE GAP, INC.
 
	 
	 /S/ DONALD G. FISHER
 

	 Chairman of the Board

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