Document:

Employment Agreement

 Exhibit 10.1 
  
 EMPLOYMENT AGREEMENT 
  

AGREEMENT, made and entered as of this 2nd day of November, 2004 (the “Effective Date”), by and between ARAMARK Corporation, a Delaware
corporation (“ARAMARK”), and Joseph Neubauer (“Mr. Neubauer”) (the “Agreement”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, Mr. Neubauer currently serves as Executive Chairman of ARAMARK pursuant to the terms of an employment agreement, entered into on October 27, 2003
(the “Prior Agreement”); and 
  
 WHEREAS, ARAMARK and
Mr. Neubauer desire to enter into this Agreement, effective as of the Effective Date, which will, except as otherwise set forth herein, supersede the Prior Agreement and set forth the terms and conditions under which Mr. Neubauer will serve in an
executive capacity hereafter for ARAMARK and its affiliates; 
  
 NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties hereto hereby agree as follows: 
  
 1. Employment. ARAMARK hereby employs Mr. Neubauer, and Mr. Neubauer hereby accepts such employment, as of the Effective Date, upon the terms and
conditions set forth in this Agreement. 
  
 2. Position and
Duties. During the Term (as hereinafter defined), Mr. Neubauer (i) agrees to serve as the Chairman and Chief Executive Officer of ARAMARK and to perform such duties in such capacity as may be delineated in the By-Laws of ARAMARK and such other
reasonable duties, consistent with his position as Chairman and Chief Executive Officer, as may be assigned to him from time to time by the Board of Directors of ARAMARK (the “Board”), (ii) shall report only to the Board, and (iii)
shall be given such authority as is appropriate to carry out the duties described above. During the Term, ARAMARK shall make its best efforts to ensure Mr. Neubauer’s election to, and retention as a member of, the Board. 
  
 3. Exclusive Services. During the Term, and except for illness or
incapacity, Mr. Neubauer shall devote substantially all of his business time, attention, skill and efforts exclusively to the business and affairs of ARAMARK and its subsidiaries and affiliates, shall not be engaged in any other business activity,
and shall perform and discharge the duties that may be assigned to him from time to time by the Board; provided, however, that nothing in this Agreement shall preclude Mr. Neubauer from devoting time during reasonable periods required
for: 
  
 (i) serving, in accordance with ARAMARK’s policies
and with the prior approval of the Board, as a director or member of a committee of any company or organization, (it being understood that Mr. Neubauer may continue to serve as a director or member of boards and committees on which he serves as of
the date of this Agreement); 

 (ii) delivering lectures and fulfilling speaking engagements; 
  
 (iii) engaging in charitable and community activities; 
  
 (iv) investing his personal assets in a Passive Investment (as hereinafter
defined) in such form and in such manner as will not violate Section 11 below; and 
  
 (v) if, and to the extent, permitted by the Board, conducting other business activities, in such manner as will not violate Section 11 below. 
  
 For purposes of this Agreement, a “Passive Investment” shall mean an investment in a business or entity which does not require Mr.
Neubauer to render any services in the operations or affairs of such business or entity and which does not materially interfere with the performance of Mr. Neubauer’s duties and obligations to ARAMARK or any of its subsidiaries or affiliates.

  
 4. Relocation. ARAMARK shall not relocate Mr.
Neubauer’s principal place of business outside of Philadelphia, Pennsylvania, without the written consent of Mr. Neubauer. 
  
 5. Term of Agreement. The term of this Agreement shall be the period commencing on the Effective Date and ending on the second anniversary of a
notice of termination of the Agreement given by either party unless earlier terminated pursuant to Section 9 (the “Term”). 
  
 6. Salary and Annual Bonus. 
  
 (a) Salary. Mr. Neubauer shall be paid base salary (the “Base Salary”) at the initial rate of $1,000,000 per annum. The Base Salary shall
be payable in accordance with the customary payroll practices for senior executives of ARAMARK. The Board shall review the performance of Mr. Neubauer on a periodic basis and, in its sole discretion, may (but is not required to) increase his salary
payable hereunder. Any such increased salary shall thereafter be Mr. Neubauer’s Base Salary. 
  
 (b) Annual Bonus. Mr. Neubauer shall be a participant in the Senior Executive Annual Performance Bonus Arrangement or any successor plan, in
accordance with and subject to the terms and conditions of such arrangement or as it may hereafter be amended (the amount payable thereunder, his “Bonus”). 
  
 7. Stock Options; Stock Ownership; Other Equity Programs. 
  
 (a) Mr. Neubauer shall be eligible to participate in ARAMARK’s 2001
Equity Incentive Plan, or any successor plans, in accordance with and subject to the terms and conditions of such plans or as they may hereafter be amended, so long as they remain in effect. 
  

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 (b) Mr. Neubauer is vested in his equity credit account in the former Career Compensation Plan which is
now called the Equity Credit Arrangement in accordance with and subject to the terms and conditions of such Arrangement. Granting of equity incentives under the plan was discontinued on December 3, 1982. The Arrangement provides for accrual of
interest, and payment of those equity credit awards previously granted under the plan. 
  
 8. Retirement and Welfare Benefits. 
  
 (a) During the Term, unless otherwise specified herein, Mr. Neubauer will be eligible to participate in all retirement and welfare plans, programs and benefits that are from time to time applicable to senior
executives of ARAMARK at benefit levels applicable from time to time to such senior executives (including, without limitation, each retirement plan, supplemental and excess retirement plan, group life insurance, accident and death insurance, medical
and dental insurance, sick leave and disability plan and any other plan or program providing fringe benefits or perquisites). 
  
 (b) ARAMARK shall pay Supplemental Retirement Benefits under the terms and conditions set forth in Exhibit A. 
  
 9. Termination of Employment. 
  
 (a) Termination for Cause; Resignation Without Good Reason.

  
 (i) ARAMARK may terminate Mr. Neubauer’s employment
hereunder for Cause in accordance with the provisions of Section 9(a)(ii), and the Term shall end on the date of any such termination. Mr. Neubauer may voluntarily terminate his employment hereunder without Good Reason. In such event, the Term will
end on the date of any such termination; provided that if such termination occurs at least two years after Mr. Neubauer’s notice to ARAMARK of his intent to terminate his employment hereunder without Good Reason, it shall be considered a
“Voluntary Termination with Notice.” In the event Mr. Neubauer’s employment is terminated by ARAMARK for Cause or Mr. Neubauer resigns from his employment without Good Reason, Mr. Neubauer shall receive the following amounts:

  
 (A) Any Base Salary accrued but unpaid, and any accrued
vacation as of the effective date of termination (the “Accrued Amounts”); 
  
 (B) A prorated Bonus with respect to ARAMARK’s fiscal year in which termination occurs equal to the average annual Bonus paid or accrued on behalf of Mr. Neubauer for (i) the fiscal years of ARAMARK that ended in
2001, 2002 and 2003, or (ii) the three full fiscal years of ARAMARK that precede the year of Mr. Neubauer’s termination of employment, whichever is greater (his “Average Bonus”) multiplied by the number of days employed over total
days in the year in which Mr. Neubauer’s employment terminated (a “Pro-Rata Bonus”); 
  
 (C) Supplemental Retirement Benefits payable pursuant to Exhibit A; 
  

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 (D) All amounts otherwise payable or coverages otherwise afforded pursuant to the terms of any employee
benefit plan maintained by ARAMARK (the “Plan Amounts”); and 
  
 (E) Mr. Neubauer may elect to continue at his sole expense the Executive Health Plan (to the extent Mr. Neubauer and members of his family are eligible for such benefit and, for this purpose, Mr. Neubauer shall be deemed to be employed by
ARAMARK) for a period not to exceed three years. Equity Credit Arrangement participation shall be as a terminated employee under the Arrangement. 
  
 In addition, all of the options and ISPOs held by Mr. Neubauer shall remain subject to the terms and conditions of the applicable plans, except that, in
the case of a Voluntary Termination with Notice, all of such stock options and ISPOs shall also become vested and immediately exercisable on the date of termination. 
  
 (ii) Termination for “Cause” shall mean termination by action of the Board because of: (A) Mr. Neubauer’s
repeated and willful failure to perform his duties hereunder in any material respect; (B) Mr. Neubauer’s conviction of, or plea of nolo contendere to, a felony; or (C) any willful misconduct by Mr. Neubauer that is materially injurious to the
financial condition or business reputation of ARAMARK and its affiliates and subsidiaries taken as a whole, provided, however, that no event or circumstance shall be considered to constitute Cause within the meaning of clause (A) or
(C) unless Mr. Neubauer has been given written notice of the events or circumstances constituting Cause and has failed to effect a cure thereof within 30 calendar days after his receipt of such notice. 
  
 (iii) Resignation for “Good Reason” shall mean (A) the resignation
of Mr. Neubauer after (x) ARAMARK, without the express written consent of Mr. Neubauer, materially breaches this Agreement or Mr. Neubauer is not serving on the Board (other than with the express written consent of Mr. Neubauer); (y) Mr. Neubauer
notifies ARAMARK in writing of the nature of such material breach or failure to be a member of the Board and (z) ARAMARK does not correct such material breach or failure within 30 calendar days after its receipt of such notice; or (B) resignation by
Mr. Neubauer within 12 months after a Change of Control (as defined below in this Section). ARAMARK acknowledges and agrees that a material breach for purposes of this Section 9 shall include, but not be limited to, any material reduction in Mr.
Neubauer’s duties or authority (whether or not accompanied by a change in title), any diminution in Mr. Neubauer’s title, any failure to pay Mr. Neubauer’s Base Salary and any relocation of Mr. Neubauer’s principal place of
business outside of Philadelphia, Pennsylvania. 
  
 (iv) For this
purpose, “Change of Control” shall occur if (i) a “person” as defined in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and as used in Sections 13(d) and 14(d) thereof,
including a “group” as defined in Section 13(d) of the Exchange Act but excluding ARAMARK and any subsidiary and any employee benefit plan sponsored or maintained by ARAMARK or any subsidiary (including any trustee of such plan acting as
trustee), shall become the beneficial owner, directly or indirectly, of securities of ARAMARK representing 35% or more of the combined voting power of ARAMARK’s then outstanding voting securities, (ii) at any time individuals who within the

  

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 prior two years constituted the Board (together with any new directors whose election by the Board or whose nomination
for election by ARAMARK’s shareholders was approved by a vote of the majority of the Directors then still in office who were either (x) Directors immediately prior to such two year period or (y) whose election or nomination for election was
previously so approved) cease for any reason to constitute a majority of the Directors then in office; (iii) there occurs any sale, exchange or other disposition, in one transaction, or in a series of related transactions, of substantially all of
ARAMARK’s income producing assets or property; (iv) there is consummated any transaction or series of transactions under which ARAMARK is merged or consolidated with any other company, other than a merger or consolidation which results in the
shareholders of ARAMARK immediately prior thereto continuing to own (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of ARAMARK
or such surviving entity outstanding immediately after such merger or consolidation; or (v) there occurs a change in control of a nature that would be required to be reported in reference to Item 1(a) of Current Report on Form 8-K pursuant to
Section 13 or 15(d) of the Exchange Act; provided, however, that no Change of Control shall occur if Mr. Neubauer is a member of a group (i.e. a “person,” as above defined) whose transaction with ARAMARK or its shareholders
would result in a Change of Control. 
  
 (b) Termination
Without Cause; Resignation for Good Reason. 
  
 ARAMARK may
terminate Mr. Neubauer’s employment hereunder without Cause, in which case the Term will end on the date of any such termination; provided that if such termination occurs at least two years after ARAMARK’s notice to him of its intent to
terminate his employment hereunder without Cause, it shall be considered an “Involuntary Termination with Notice.” Mr. Neubauer may terminate his employment hereunder for Good Reason, and the Term shall end upon such termination of
employment. 
  
 In the event Mr. Neubauer’s employment is
terminated by ARAMARK without Cause or if Mr. Neubauer should resign for Good Reason, Mr. Neubauer shall receive the following amounts, and ARAMARK shall have no further obligation to Mr. Neubauer under this Agreement, except as specifically set
forth in this Agreement: 
  
 (i) The Accrued Amounts; 

 
 (ii) In the case of an Involuntary Termination with Notice, the Pro-Rata
Bonus; 
  
 (iii) Except in the case of an Involuntary Termination
with Notice, a lump sum payment equal to two times Mr. Neubauer’s Base Salary, payable within 10 business days after the effective date of termination of employment; 
  
 (iv) Except in the case of an Involuntary Termination with Notice, a lump sum payment equal to the Pro-Rata Bonus plus two
times Mr. Neubauer’s Average Bonus payable within 10 business days after the effective date of termination of employment; 
  

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 (v) Supplemental Retirement Benefits shall be payable pursuant to Exhibit A; 
  
 (vi) Except in the case of an Involuntary Termination with Notice, Survivor
Income Protection Plan, other health and welfare plan participation, and other perquisites shall continue for three years from the effective date of termination. 
  
 (vii) Mr. Neubauer may elect to continue at his sole expense the Executive Health Plan (to the extent Mr. Neubauer and
members of his family are eligible for such benefit and, for this purpose, Mr. Neubauer shall be deemed to be employed by ARAMARK) for a period not to exceed three years. Equity Credit Arrangement participation shall be as a terminated employee
under the Arrangement; and 
  
 (viii) The Plan Amounts.

  
 In addition, all of the options and ISPOs to purchase shares
of Stock of ARAMARK held by Mr. Neubauer shall become vested and immediately exercisable but will in all respects otherwise remain subject to the terms and conditions of the applicable plans. 
  
 (c) No Duty to Mitigate. Anything contained herein to the contrary
notwithstanding, if Mr. Neubauer’s employment terminates for any reason, Mr. Neubauer shall in no event be required to seek any other employment or take any other action by way of mitigation or otherwise with respect to the amounts payable to
Mr. Neubauer under this Agreement. In addition, any amounts earned by Mr. Neubauer, whether from self-employment, as a common law employee or otherwise, shall not reduce any amounts otherwise payable to him under this Agreement. 
  
 (d) Death. If Mr. Neubauer’s Employment terminates by reason of
Mr. Neubauer’s death, the Term shall end and Mr. Neubauer’s estate shall receive the following amounts: 
  
 (i) The Accrued Amounts; 
  
 (ii) The Pro-Rata Bonus; 
  
 (iii) Supplemental Retirement Benefits shall be payable to the extent set forth in Exhibit A; 
  
 (iv) Equity Credit Arrangement participation shall be as a terminated
employee under the Arrangement; and 
  
 (v) The Plan Amounts.

  
 Stock options and ISPOs shall be treated in accordance with
the terms of the applicable plans. 
  
 (e) Permanent
Disability. In the event that Mr. Neubauer is unable to perform his duties hereunder by reason of illness or incapacity for a continuous period of more than six 
  

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 (6) months, or for an aggregate of more than eight (8) months in any twelve (12) month period, ARAMARK shall have the
right to terminate Mr. Neubauer’s employment by reason of disability (“Permanent Disability”). If ARAMARK terminates Mr. Neubauer’s employment pursuant to this Section 9(e), the Term shall end and Mr. Neubauer shall receive the
following amounts: 
  
 (i) The Accrued Amounts; 
  
 (ii) Base Salary shall continue for a period of three years from the
effective date of termination, offset by any payments due to Mr. Neubauer pursuant to the Survivor Income Protection Plan and all other disability income protection plans of ARAMARK; 
  
 (iii) The Pro-Rata Bonus; 
  
 (iv) Supplemental Retirement Benefits shall be payable pursuant to Exhibit A; 
  
 (v) Equity Credit Arrangement participation shall be as a terminated employee under the Arrangement; and 
  
 (vi) The Plan Amounts. 
  
 In addition, all of the stock options and ISPOs held by Mr. Neubauer shall
become vested and immediately exercisable but will in all respects otherwise remain subject to the terms and conditions of the applicable plans. Mr. Neubauer may elect to continue at his sole expense any or all of the benefits provided by the
Executive Health Plan (to the extent Mr. Neubauer and members of his family are eligible for such benefit and, for this purpose, Mr. Neubauer shall be deemed to be employed by ARAMARK) for a period not to exceed three years. 
  
 10. Trade Secrets. ARAMARK may, pursuant to Mr. Neubauer’s
employment hereunder, provide and confide to Mr. Neubauer business methods and systems (“Systems”), techniques and methods of operation developed at great expense by ARAMARK and which Mr. Neubauer recognizes to be unique assets of
ARAMARK’s business. Mr. Neubauer shall not, ever, during or after the Term, directly or indirectly, in any manner utilize or disclose to any person, firm, corporation, association or other entity, except to directors, consultants, lawyers,
auditors, advisors, agents or employees of ARAMARK in the course of his duties or where required by law: (i) any such Systems, techniques and methods of operation, or (ii) any sales prospects, customer lists, products, research or data of any kind,
or (iii) any information relating to strategic plans, sales costs, profits or the financial condition of ARAMARK or any of its customers or prospective customers, which are not generally known to the public or recognized as standard practice in the
industries in which ARAMARK shall be engaged. 
  
 11.
Non-Competition Agreement. 
  
 (a) Subject to the
geographic limitation of Section 11(b), Mr. Neubauer, for a period commencing on the date hereof and ending two (2) years following the end of the Term 
  

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 shall not, without ARAMARK’s written permission, directly or indirectly, on his behalf or on behalf of any other
person, firm, corporation, association or other entity, engage in, or in any way be concerned with or negotiate for, or acquire or maintain any ownership interest in any business or activity which is the same, similar to or competitive with that
conducted by, engaged in or developed for later implementation by ARAMARK at any time during the Term of this Agreement and any subsequent consulting period; provided that the provision of this Section 11 shall not be deemed breached merely because
Mr. Neubauer owns not more than 1% of the outstanding stock of a corporation, if, at the time of its acquisition by Mr. Neubauer, such stock is listed on a national securities exchange or quoted on an inter-dealer quotation system and provided
further that Mr. Neubauer shall not be required to cease any activity that did not violate this Agreement (or any predecessor agreement) when such activity commenced. 
  
 (b) Mr. Neubauer acknowledges that ARAMARK is engaged in business in each of the 50 states and several foreign countries and
that ARAMARK intends to expand the geographic scope of its activities. Accordingly and in view of the nature of his position and responsibilities, Mr. Neubauer agrees that the provisions of Section 11(a) shall be applicable to all 50 states and,
addition, to each foreign country, possession or territory in which ARAMARK (as defined in Section 11(d)) may be engaged in business from time to time during the Term and as of the expiration of the Term and any subsequent consulting period.

  
 (c) Mr. Neubauer agrees that for a period of two (2) years
following the end of the Term he will not, directly or indirectly, at any time in any manner, induce or attempt to influence any employees of ARAMARK to terminate their employment with ARAMARK. 
  
 (d) As used in Sections 10 and 11 of this Agreement, “ARAMARK”
shall be deemed to include any entity twenty percent (20%) of the equity of which during the period for which he is receiving payments under this Agreement and during any subsequent consulting period, is directly or indirectly owned by ARAMARK.

  
 12. Equitable Remedies. Mr. Neubauer acknowledges that,
in the event of any violation by Mr. Neubauer of the provisions of Sections 10 or 11 of this Agreement, ARAMARK will sustain serious, irreparable and substantial harm to its business, the extent of which will be difficult to determine and impossible
to remedy by an action at law for money damages. Accordingly, Mr. Neubauer agrees that, in the event of such violation or threatened violation by Mr. Neubauer, ARAMARK shall be entitled to an injunction before trial from any court of competent
jurisdiction as a matter of course and upon the posting of not more than a nominal bond in addition to all such other legal and equitable remedies as may be available to ARAMARK. Mr. Neubauer further agrees that, in the event any of the provisions
of Sections 10 and 11 of this Agreement are determined by a court of competent jurisdiction to be contrary to any applicable statute, law or rule, or for any reason to be unenforceable as written, such court may modify any of such provisions so as
to permit enforcement thereof as thus modified. 
  
 13.
Deferred Compensation. Mr. Neubauer has entered into a series of deferred compensation agreements with ARAMARK. Such agreements shall remain in full force and effect, and shall not be affected by ARAMARK and Mr. Neubauer entering into this
Agreement. 
  

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 14. Additional Provisions. The provisions of Exhibit B are part of this Agreement. 
  
 15. Substitution of Benefits. If any of the items of compensation,
bonus or perquisites provided for in this Agreement shall hereafter be prohibited by governmental regulations, corporate law, ARAMARK policies or ARAMARK plans, payment or benefit of equivalent value shall be substituted by ARAMARK. 
  
 16. Entire Agreement. This Agreement (with the exhibits hereto and
agreements referred to in Sections 7 and 13), on and after the Effective Date, shall constitute the full and complete understanding and agreement of Mr. Neubauer and ARAMARK respecting the subject matter hereof, and supersedes all prior
understandings and agreements, oral or written, express or implied. The Registration Rights Agreement among ARAMARK Worldwide Corporation, Mr. Neubauer and certain other shareholders dated December 14, 2001, shall be unaffected by this Agreement.
This Agreement may not be modified or amended orally, but only by agreement in writing, signed by the party against whom enforcement of any waiver, change, modification, extension or discharge is sought. 
  
 17. Notices. All notices and other communications hereunder will be in
writing and will be given by hand delivery to the other party or by next-day delivery service or registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 
  
 If to Mr. Neubauer: 
  
  
 If to ARAMARK: 
  
 ARAMARK Corporation

 1101 Market Street 
 Philadelphia, PA 19107 
 Attn.: Corporate Secretary 
  
 or to such other address as either party will have furnished to the other in writing. All
notices and communications shall be deemed to have been duly given and received: (a) on the date of receipt, if delivered by hand; (b) three (3) business days after being sent by first class certified mail, return receipt requested, postage prepaid;
or (c) one (1) business day after sending by next-day delivery service with confirmation of receipt. As used herein, the term “business day” means any day that is not Saturday, Sunday or legal holiday in the State of Pennsylvania.

  
 18. Waiver of Breach. No waiver by either party of any
condition or of the breach by the other of any term or covenant contained in this Agreement, whether by conduct or otherwise, in any one or more instances shall be deemed or construed as a further or continuing waiver of any such condition or breach
or a waiver of any other condition, or of the breach of any other term or covenant set forth in this Agreement. Moreover, the failure of either party to exercise any right hereunder shall not bar the later exercise thereof. 
  

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 19. Assignment. This Agreement shall inure to the benefit of and be binding on the parties and
their respective successors in interest, and shall not be assignable by either party without the written consent of the other. ARAMARK will require any successor in interest to all or substantially all of ARAMARK (whether direct or indirect, by
purchase, merger, or consolidation or otherwise) to expressly assume this Agreement, but ARAMARK shall remain liable if such successor in interest shall default on any of its obligations hereunder. 
  
 20. Governing Law. This Agreement is entered into and shall be
construed in accordance with the laws of the Commonwealth of Pennsylvania. 
  
 21. Continuation of Covenants. The covenants and agreements of Mr. Neubauer set forth in Sections 10 through 12 shall survive termination of employment, shall continue thereafter, and shall not expire unless
and except as may be expressly set forth in said Sections. 
  
 22.
Invalidity or Unenforceability. If any term or provision of this Agreement is held to be invalid or unenforceable, for any reason, such invalidity or unenforceability shall not affect any other term or provision hereof and this Agreement
shall continue in full force and effect as if such invalid or unenforceable term or provision (to the extent of the invalidity or unenforceability) had not been contained herein. 
  
 23. Arbitration. Except as provided in Section 12, any controversy or claim arising out of or relating to this
Agreement, or the breach hereof, shall be settled by arbitration in Philadelphia, Pennsylvania, before one arbitrator in accordance with rules then in effect of the American Arbitration Association. ARAMARK shall pay Mr. Neubauer’s legal
expenses should Mr. Neubauer prevail on any substantial issue. 
  

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

			
	 MR. NEUBAUER
  

	 /s/ JOSEPH NEUBAUER

	 Joseph Neubauer
  

	 ARAMARK Corporation
  

	 By:
	 	 /s/ JAMES E. PRESTON

  

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 Exhibit A 
  

	1.	The annual Supplemental Retirement Benefits (“SRB”), payable in substantially equal monthly installments, shall equal the sum of: 50% of Mr. Neubauer’s Base Salary,
plus 50% of an amount equal to one times Mr. Neubauer’s Average Bonus minus the benefit payable from the Survivor Income Protection Plan. 

  

	2.	Unless otherwise provided below the SRB shall commence on the first day of the month following the expiration of the Term. 

  

	3.	In all events the SRB shall terminate upon Mr. Neubauer’s death, provided that one-half of the SRB amount that would otherwise be payable to Mr. Neubauer shall
continue to be paid to Mr. Neubauer’s then surviving spouse, if any, for her lifetime, provided that the surviving spouse benefit described in this item 3 shall only apply to the individual who is Mr. Neubauer’s spouse at the time of his
termination of employment hereunder. 

  

	4.	In the event of termination of Mr. Neubauer’s employment due to Permanent Disability, payments shall commence upon the earlier of Mr. Neubauer’s attainment of age 65 or
expiration of Mr. Neubauer’s eligibility to receive Company Long Term Disability Plan (or any successor plan) benefits. 

 Exhibit B 
  

Excise Tax Gross Up 
  
 (a) In the event that any payment or benefit received or to be received by Mr. Neubauer pursuant to the terms of this Agreement or otherwise from ARAMARK
or any affiliate (the “Payments”) would be subject to the excise tax (the “Excise Tax”) imposed by Section 4999 of the Code, as determined as provided below, ARAMARK shall pay to Mr. Neubauer, at the time specified in (b) below,
an additional amount (the “Gross-Up Payment”) such that the net amount retained by Mr. Neubauer, after deduction of the Excise Tax on the Payments and any federal, state and local income or other tax and Excise Tax upon the payment
provided for by this Section (a), and any interest, penalties or additions to tax payable by Mr. Neubauer with respect thereto, shall be equal to the value of the Payments at the time such Payments are to be made as if the Excise Tax imposed by
Section 4999 did not apply. For purposes of determining whether any of the Payments will be subject to the Excise Tax and the amounts of such Excise Tax, (1) the total amount of the Payments shall be treated as “parachute payments” within
the meaning of Section 280G(b)(2) of the Code, and all “excess parachute payments” within the meaning of Section 280G(b)(1) of the Code shall be treated as subject to the Excise Tax, except to the extent that, in the opinion of independent
tax counsel selected by ARAMARK’s independent auditors and reasonably acceptable to Mr. Neubauer (“Tax Counsel”), a Payment (in whole or in part) does not constitute a “parachute payment” within the meaning of Section
280G(b)(2) of the Code, or such “excess parachute payments” (in whole or in part) are not subject to the Excise Tax, (2) the amount of the Payments that shall be treated as subject to the Excise Tax shall be equal to the lesser of (A) the
total amount of the Payments or (B) the amount of “excess parachute payments” within the meaning of Section 280G(b)(1) of the Code (after applying clause (1) hereof), and (3) the value of any noncash benefits or any deferred payment or
benefit shall be determined by Tax Counsel in accordance with the principles of Sections 280G(d)(3) and (4) of the Code. For purposes of determining the amount of the Gross-Up Payment, Mr. Neubauer shall be deemed to pay federal income tax at the
highest marginal rates of federal income taxation applicable to individuals in the calendar year in which the Gross-Up Payment is to be made and state and local income taxes at the highest effective rates of taxation applicable to individuals as are
in effect in the state and locality of Mr. Neubauer’s residence or place of employment in the calendar year in which the Gross-Up Payment is to be made, net of the maximum reduction in federal income taxes that can be obtained from deduction of
such state and local taxes, taking into account any limitations applicable to individuals subject to federal income tax at the highest marginal rates. 
  
 (b) The Gross-Up Payments provided for in Section (a) hereof shall be made upon the imposition upon Mr. Neubauer or payment by Mr. Neubauer of any Excise
Tax. 
  
 (c) Mr. Neubauer shall notify ARAMARK in writing of any
claim by the Internal Revenue Service that, if successful, would require the payment by ARAMARK of a Gross-Up Payment. Such notification shall be given as soon as practicable but no later than 10 business days after Mr. Neubauer is informed in
writing of such claim and shall apprise ARAMARK of the nature of such claim and the date on which such claim is requested to be paid. Mr. Neubauer shall not pay such claim prior to the expiration of the 30 day period following the date on which Mr.
Neubauer gives such notice to ARAMARK (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If ARAMARK notifies Mr. Neubauer in writing prior to the expiration of such period that it desires to
contest such claim, Mr. Neubauer shall: 
  
 i. give ARAMARK any
information reasonably requested by ARAMARK relating to such claim; 

 ii. take such action in connection with contesting such claim as ARAMARK shall reasonably request in
writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by ARAMARK and reasonably satisfactory to Mr. Neubauer; 
  
 iii. cooperate with ARAMARK in good faith in order to effectively contest
such claim; and 
  
 iv. permit ARAMARK to participate in any
proceedings relating to such claim; 
  
 provided, however, that
ARAMARK shall bear and pay directly all costs and expenses (including, but not limited to, additional interest and penalties and related legal, consulting or other similar fees) incurred in connection with such contest and shall indemnify and hold
Mr. Neubauer harmless, on an after-tax basis, for any Excise Tax or other tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. 
  
 (d) ARAMARK shall control all proceedings taken in connection with such
contest and, at its sole option, may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may, at its sole option, either direct Mr. Neubauer to pay the tax
claimed and sue for a refund or contest the claim in any permissible manner, and Mr. Neubauer agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate
courts, as ARAMARK shall determine; provided, however, that if ARAMARK directs Mr. Neubauer to pay such claim and sue for a refund, ARAMARK shall advance the amount of such payment to Mr. Neubauer on an interest-free basis, and shall
indemnify and hold Mr. Neubauer harmless, on an after-tax basis, from any Excise Tax or other tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such
advance; and provided, further, that if Mr. Neubauer is required to extend the statute of limitations to enable ARAMARK to contest such claim, Mr. Neubauer may limit this extension solely to such contested amount. ARAMARK’s
control of the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and Mr. Neubauer shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service
or any other taxing authority. In addition, no position may be taken nor any final resolution be agreed to by ARAMARK without Mr. Neubauer’s consent if such position or resolution could reasonably be expected to adversely affect Mr. Neubauer
(including any other tax position of Mr. Neubauer unrelated to the matters covered hereby). 
  
 (e) As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by ARAMARK or the Tax Counsel hereunder, it is possible that Gross-Up Payments which will not
have been made by ARAMARK should have 
  

 2 

 been made (“Underpayment”), consistent with the calculations required to be made hereunder. In the event that
ARAMARK exhausts its remedies and Mr. Neubauer thereafter is required to pay to the Internal Revenue Service an additional amount in respect of any Excise Tax, the Tax Counsel shall determine the amount of the Underpayment that has occurred and any
such Underpayment shall promptly be paid by ARAMARK to or for the benefit of Mr. Neubauer. 
  
 (f) If, after the receipt by Mr. Neubauer of the Gross-Up Payment or an amount advanced by ARAMARK in connection with the contest of an Excise Tax claim, Mr. Neubauer receives any refund with respect to such claim,
Mr. Neubauer shall promptly pay to ARAMARK the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after the receipt by Mr. Neubauer of an amount advanced by ARAMARK in connection with an
Excise Tax claim, a determination is made that Mr. Neubauer shall not be entitled to any refund with respect to such claim and ARAMARK does not notify Mr. Neubauer in writing of its intent to contest the denial of such refund prior to the expiration
of 30 days after such determination, such advance shall be forgiven and shall not be required to be repaid. 
  

 32004 STOCK PLAN

  
 EXHIBIT 10.1

  
 ESSEX CORPORATION 
 2004 STOCK INCENTIVE PLAN 
  
 1. Purposes of the Plan. The purposes of this Plan are to attract and retain the best available personnel, to provide additional incentives to Employees,
Directors and Consultants and to promote the success of the Company’s business. 
  
 2. Definitions. The following definitions shall apply as used herein and in the individual Award Agreements except as defined otherwise in an individual Award Agreement. In the event a term is separately defined in an
individual Award Agreement, such definition shall supercede the definition contained in this Section 2. 
  
 a. “ADMINISTRATOR” means the Board or any of the Committees appointed to administer the Plan. 
  
 b. “AFFILIATE” and “ASSOCIATE” shall
have the respective meanings ascribed to such terms in Rule 12b-2 promulgated under the Exchange Act. 
  
 c. “APPLICABLE LAWS” means the legal requirements relating to the Plan and the Awards under applicable provisions of federal
securities laws, state corporate and securities laws, the Code, the rules of any applicable stock exchange or national market system, and the rules of any non-U.S. jurisdiction applicable to Awards granted to residents therein. 
  
 d. “ASSUMED” means that pursuant to a Corporate
Transaction either (i) the Award is expressly affirmed by the Company or (ii) the contractual obligations represented by the Award are expressly assumed (and not simply by operation of law) by the successor entity or its Parent in connection with
the Corporate Transaction with appropriate adjustments to the number and type of securities of the successor entity or its Parent subject to the Award and the exercise or purchase price thereof which at least preserves the compensation element of
the Award existing at the time of the Corporate Transaction as determined in accordance with the instruments evidencing the agreement to assume the Award. 
  
 e. “AWARD” means the grant of an Option, SAR, Dividend Equivalent Right, Restricted Stock, Restricted Stock Unit or other right
or benefit under the Plan. 
  
 f. “AWARD
AGREEMENT” means the written agreement evidencing the grant of an Award executed by the Company and the Grantee, including any amendments thereto. 
  
 g. “BOARD” means the Board of Directors of the Company. 
  
 h. “CAUSE” means, with respect to the termination by the Company or a Related Entity of the
Grantee’s Continuous Service, that such termination is for “Cause” as such 

  

 1 

 
term is expressly defined in a then-effective written agreement between the Grantee and the Company or such Related Entity, or in the absence of such
then-effective written agreement and definition, is based on, in the determination of the Administrator, the Grantee’s: (i) performance of any act or failure to perform any act in bad faith and to the detriment of the Company or a Related
Entity; (ii) dishonesty, intentional misconduct or material breach of any agreement with the Company or a Related Entity; or (iii) commission of a crime involving dishonesty, breach of trust, or physical or emotional harm to any person. 

 
 i. “CHANGE IN CONTROL” means a change in
ownership or control of the Company effected through either of the following transactions: 
  
 (i) the direct or indirect acquisition by any person or related group of persons (other than an acquisition from or by the Company or by a
Company-sponsored employee benefit plan or by a person that directly or indirectly controls, is controlled by, or is under common control with, the Company) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities
possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities pursuant to a tender or exchange offer made directly to the Company’s stockholders which a majority of the Continuing
Directors who are not Affiliates or Associates of the offeror do not recommend such stockholders accept, or 
  
 (ii) a change in the composition of the Board over a period of thirty-six (36) months or less such that a majority of the Board members
(rounded up to the next whole number) ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who are Continuing Directors. 
  
 j. “CODE” means the Internal Revenue Code of 1986, as amended. 
  
 k. “COMMITTEE” means any committee composed of
members of the Board appointed by the Board to administer the Plan. 
  
 l. “COMMON STOCK” means the common stock of the Company. 
  
 m. “COMPANY” means Essex Corporation, a Virginia corporation, or any successor corporation that adopts the Plan in connection
with a Corporate Transaction. 
  
 n.
“CONSULTANT” means any person (other than an Employee or a Director, solely with respect to rendering services in such person’s capacity as a Director) who is engaged by the Company or any Related Entity to render consulting or
advisory services to the Company or such Related Entity. 
  
 o. “CONTINUING DIRECTORS” means members of the Board who either (i) have been Board members continuously for a period of at least thirty-six (36) months or (ii) have been Board members for less than
thirty-six (36) months and were elected or nominated for election as Board members by at least a majority of the Board members described in clause (i) who were still in office at the time such election or nomination was approved by the Board.

  

 2 

 p. “CONTINUOUS SERVICE” means that the provision of services to the Company or
a Related Entity in any capacity of Employee, Director or Consultant is not interrupted or terminated. In jurisdictions requiring notice in advance of an effective termination as an Employee, Director or Consultant, Continuous Service shall be
deemed terminated upon the actual cessation of providing services to the Company or a Related Entity notwithstanding any required notice period that must be fulfilled before a termination as an Employee, Director or Consultant can be effective under
Applicable Laws. Continuous Service shall not be considered interrupted in the case of (i) any approved leave of absence, (ii) transfers among the Company, any Related Entity, or any successor, in any capacity of Employee, Director or Consultant, or
(iii) any change in status as long as the individual remains in the service of the Company or a Related Entity in any capacity of Employee, Director or Consultant (except as otherwise provided in the Award Agreement). An approved leave of absence
shall include sick leave, military leave, or any other authorized personal leave. For purposes of each Incentive Stock Option granted under the Plan, if such leave exceeds ninety (90) days, and reemployment upon expiration of such leave is not
guaranteed by statute or contract, then the Incentive Stock Option shall be treated as a Non-Qualified Stock Option on the day three (3) months and one (1) day following the expiration of such ninety (90) day period. 
  
 q. “CORPORATE TRANSACTION” means any of the
following transactions: 
  
 (i) a merger or
consolidation in which the Company is not the surviving entity, except for a transaction the principal purpose of which is to change the state in which the Company is incorporated; 
  
 (ii) the sale, transfer or other disposition of all or substantially all of the assets of the Company;

  
 (iii) the complete liquidation or dissolution
of the Company; 
  
 (iv) any reverse merger or
series of related transactions culminating in a reverse merger (including, but not limited to, a tender offer followed by a reverse merger) in which the Company is the surviving entity but (A) the shares of Common Stock outstanding immediately prior
to such merger are converted or exchanged by virtue of the merger into other property, whether in the form of securities, cash or otherwise, or (B) in which securities possessing more than forty percent (40%) of the total combined voting power of
the Company’s outstanding securities are transferred to a person or persons different from those who held such securities immediately prior to such merger or the initial transaction culminating in such merger, but excluding any such transaction
or series of related transactions that the Administrator determines shall not be a Corporate Transaction; or 
  
 (v) acquisition in a single or series of related transactions by any person or related group of persons (other than the Company or by a
Company-sponsored employee benefit plan) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding
securities but excluding any such transaction or 

  

 3 

 
series of related transactions that the Administrator determines shall not be a Corporate Transaction. 
  
 r. “COVERED EMPLOYEE” means an Employee who is a
“covered employee” under Section 162(m)(3) of the Code. 
  
 s. “DIRECTOR” means a member of the Board or the board of directors of any Related Entity. 
  
 t. “DISABILITY” means as defined under the long-term disability policy of the Company or the Related Entity to which the Grantee
provides services regardless of whether the Grantee is covered by such policy. If the Company or the Related Entity to which the Grantee provides service does not have a long-term disability plan in place, “Disability” means that a Grantee
is unable to carry out the responsibilities and functions of the position held by the Grantee by reason of any medically determinable physical or mental impairment for a period of not less than ninety (90) consecutive days. A Grantee will not be
considered to have incurred a Disability unless he or she furnishes proof of such impairment sufficient to satisfy the Administrator in its discretion. 
  
 u. “DIVIDEND EQUIVALENT RIGHT” means a right entitling the Grantee to compensation measured by dividends paid with respect to
Common Stock. 
  
 v. “EMPLOYEE” means
any person, including an Officer or Director, who is in the employ of the Company or any Related Entity, subject to the control and direction of the Company or any Related Entity as to both the work to be performed and the manner and method of
performance. The payment of a director’s fee by the Company or a Related Entity shall not be sufficient to constitute “employment” by the Company. 
  
 w. “EXCHANGE ACT” means the Securities Exchange Act of 1934, as amended. 
  
 x. “FAIR MARKET VALUE” means, as of any date, the
value of Common Stock determined as follows: 
  
 (i) If the Common Stock is listed on one or more established stock exchanges or national market systems, including without limitation The Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value
shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on the principal exchange or system on which the Common Stock is listed (as determined by the Administrator) on the date of determination (or,
if no closing sales price or closing bid was reported on that date, as applicable, on the last trading date such closing sales price or closing bid was reported), as reported in The Wall Street Journal or such other source as the Administrator deems
reliable; 
  
 (ii) If the Common Stock is
regularly quoted on an automated quotation system (including the OTC Bulletin Board) or by a recognized securities dealer, its Fair Market Value shall be the closing sales price for such stock as quoted on such system on the date 

  

 4 

 
of determination, but if selling prices are not reported, the Fair Market Value of a share of Common Stock shall be the mean between the high bid and low
asked prices for the Common Stock on the date of determination (or, if no such prices were reported on that date, on the last date such prices were reported), as reported in The Wall Street Journal or such other source as the Administrator deems
reliable; or 
  
 (iii) In the absence of an
established market for the Common Stock of the type described in (i) and (ii), above, the Fair Market Value thereof shall be determined by the Administrator in good faith. 
  
 y. “GRANTEE” means an Employee, Director or Consultant who receives an Award under the Plan.

  
 z. “INCENTIVE STOCK OPTION” means
an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code 
  
 aa. “NON-QUALIFIED STOCK OPTION” means an Option not intended to qualify as an Incentive Stock Option. 
  
 bb. “OFFICER” means a person who is an officer of
the Company or a Related Entity within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
  
 cc. “OPTION” means an option to purchase Shares pursuant to an Award Agreement granted under the Plan. 
  
 dd. “PARENT” means a “parent
corporation”, whether now or hereafter existing, as defined in Section 424(e) of the Code. 
  
 ee. “PERFORMANCE-BASED COMPENSATION” means compensation qualifying as “performance-based compensation” under Section
162(m) of the Code. 
  
 ff. “PLAN”
means this 2003 Stock Incentive Plan. 
  
 gg.
“RELATED ENTITY” means any Parent or Subsidiary of the Company and any business, corporation, partnership, limited liability company or other entity in which the Company or a Parent or a Subsidiary of the Company holds a substantial
ownership interest, directly or indirectly. 
  
 hh. “REPLACED” means that pursuant to a Corporate Transaction the Award is replaced with a comparable stock award or a cash incentive program of the Company, the successor entity (if applicable) or Parent of either of them which
preserves the compensation element of such Award existing at the time of the Corporate Transaction and provides for subsequent payout in accordance with the same (or a more favorable) vesting schedule applicable to such Award. The determination of
Award comparability shall be made by the Administrator and its determination shall be final, binding and conclusive. 
  

 5 

 ii. “RESTRICTED STOCK” means Shares issued under the Plan to the Grantee for
such consideration, if any, and subject to such restrictions on transfer, rights of first refusal, repurchase provisions, forfeiture provisions, and other terms and conditions as established by the Administrator. 
  
 jj. “RESTRICTED STOCK UNITS” means an Award which
may be earned in whole or in part upon the passage of time or the attainment of performance criteria established by the Administrator and which may be settled for cash, Shares or other securities or a combination of cash, Shares or other securities
as established by the Administrator. 
  
 kk.
“RULE 16B-3” means Rule 16b-3 promulgated under the Exchange Act or any successor thereto. 
  
 ll. “SAR” means a stock appreciation right entitling the Grantee to Shares or cash compensation, as established by the
Administrator, measured by appreciation in the value of Common Stock. 
  
 mm. “SHARE” means a share of the Common Stock. 
  
 nn. “SUBSIDIARY” means a “subsidiary corporation”, whether now or hereafter existing, as defined in Section 424(f) of
the Code. 
  
 3. STOCK SUBJECT TO THE PLAN. 
  
 a. Subject to the provisions of Section 8, below, the
maximum aggregate number of Shares which may be issued pursuant to all Awards (including Incentive Stock Options) is 1,000,000 Shares. The Shares to be issued pursuant to Awards may be authorized, but unissued, or reacquired Common Stock.

  
 b. Any Shares covered by an Award (or portion
of an Award) which is forfeited, canceled or expires (whether voluntarily or involuntarily) shall be deemed not to have been issued for purposes of determining the maximum aggregate number of Shares which may be issued under the Plan. Shares that
actually have been issued under the Plan pursuant to an Award shall not be returned to the Plan and shall not become available for future issuance under the Plan, except that if unvested Shares are forfeited, or repurchased by the Company at the
lower of their original purchase price or their Fair Market Value at the time of repurchase, such Shares shall become available for future grant under the Plan. To the extent not prohibited by Section 422(b)(1) of the Code (and the corresponding
regulations thereunder), the listing requirements of The Nasdaq National Market (or other established stock exchange or national market system on which the Common Stock is traded) and Applicable Law, any Shares covered by an Award which are
surrendered (i) in payment of the Award exercise or purchase price or (b) in satisfaction of tax withholding obligations incident to the exercise of an Award shall be deemed not to have been issued for purposes of determining the maximum number of
Shares which may be issued pursuant to all Awards under the Plan, unless otherwise determined by the Administrator. 
  

 6 

 4. ADMINISTRATION OF THE PLAN. 
  
 a. PLAN ADMINISTRATOR. 
  
 (i) ADMINISTRATION WITH RESPECT TO DIRECTORS AND OFFICERS. With respect to grants of Awards to Directors or
Employees who are also Officers or Directors of the Company, the Plan shall be administered by 
 (A) the Board or (B) a Committee designated by the Board,
which Committee shall be constituted in such a manner as to satisfy the Applicable Laws and to permit such grants and related transactions under the Plan to be exempt from Section 16(b) of the Exchange Act in accordance with Rule 16b-3. Once
appointed, such Committee shall continue to serve in its designated capacity until otherwise directed by the Board. 
  
 (ii) ADMINISTRATION WITH RESPECT TO CONSULTANTS AND OTHER EMPLOYEES. With respect to grants of Awards to Employees or Consultants who are
neither Directors nor Officers of the Company, the Plan shall be administered by (A) the Board or (B) a Committee designated by the Board, which Committee shall be constituted in such a manner as to satisfy the Applicable Laws. Once appointed, such
Committee shall continue to serve in its designated capacity until otherwise directed by the Board. The Board may authorize one or more Officers to grant such Awards and may limit such authority as the Board determines from time to time. 

 
 (iii) ADMINISTRATION WITH RESPECT TO COVERED EMPLOYEES.
Notwithstanding the foregoing, grants of Awards to any Covered Employee intended to qualify as Performance-Based Compensation shall be made only by a Committee (or subcommittee of a Committee) which is comprised solely of two or more Directors
eligible to serve on a committee making Awards qualifying as Performance-Based Compensation. In the case of such Awards granted to Covered Employees, references to the “Administrator” or to a “Committee” shall be deemed to be
references to such Committee or subcommittee. 
  
 (iv) ADMINISTRATION ERRORS. In the event an Award is granted in a manner inconsistent with the provisions of this subsection (a), such Award shall be presumptively valid as of its grant date to the extent permitted by the Applicable Laws.

  
 b. POWERS OF THE ADMINISTRATOR. Subject to
Applicable Laws and the provisions of the Plan (including any other powers given to the Administrator hereunder), and except as otherwise provided by the Board, the Administrator shall have the authority, in its discretion: 
  
 (i) to select the Employees, Directors and Consultants to
whom Awards may be granted from time to time hereunder; 
  
 (ii) to determine whether and to what extent Awards are granted hereunder; 
  

 7 

 (iii) to determine the number of Shares or the amount of other consideration to be
covered by each Award granted hereunder; 
  
 (iv)
to approve forms of Award Agreements for use under the Plan; 
  
 (v) to determine the terms and conditions of any Award granted hereunder; 
  
 (vi) to amend the terms of any outstanding Award granted under the Plan, provided that (A) any amendment that would adversely affect the
Grantee’s rights under an outstanding Award shall not be made without the Grantee’s written consent, (B) the reduction of the exercise price of any Option awarded under the Plan shall be subject to stockholder approval and © canceling an Option at a time when its exercise price
exceeds the Fair Market Value of the underlying Shares, in exchange for another Option, Restricted Stock, or other Award shall be subject to stockholder approval, unless the cancellation and exchange occurs in connection with a Corporate
Transaction; 
  
 (vii) to construe and interpret
the terms of the Plan and Awards, including without limitation, any notice of award or Award Agreement, granted pursuant to the Plan; 
  
 (viii) to grant Awards to Employees, Directors and Consultants employed outside the United States on such terms and conditions different
from those specified in the Plan as may, in the judgment of the Administrator, be necessary or desirable to further the purpose of the Plan; and 
  
 (ix) to take such other action, not inconsistent with the terms of the Plan, as the Administrator deems appropriate. 
  
 c. INDEMNIFICATION. In addition to such other rights of
indemnification as they may have as members of the Board or as Officers or Employees of the Company or a Related Entity, members of the Board and any Officers or Employees of the Company or a Related Entity to whom authority to act for the Board,
the Administrator or the Company is delegated shall be defended and indemnified by the Company to the extent permitted by law on an after-tax basis against all reasonable expenses, including attorneys’ fees, actually and necessarily incurred in
connection with the defense of any claim, investigation, action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with
the Plan, or any Award granted hereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by the Company) or paid by them in satisfaction of a judgment in any such claim, investigation, action, suit
or proceeding, except in relation to matters as to which it shall be adjudged in such claim, investigation, action, suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct; provided, however, that
within thirty (30) days after the institution of such claim, investigation, action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at the Company’s expense to defend the same. 
  

 8 

 5. ELIGIBILITY. Awards other than Incentive Stock Options may be granted to Employees, Directors and
Consultants. Incentive Stock Options may be granted only to Employees of the Company or a Parent or a Subsidiary of the Company. An Employee, Director or Consultant who has been granted an Award may, if otherwise eligible, be granted additional
Awards. Awards may be granted to such Employees, Directors or Consultants who are residing in non-U.S. jurisdictions as the Administrator may determine from time to time. 
  
 6. TERMS AND CONDITIONS OF AWARDS. 
  

a. TYPES OF AWARDS. The Administrator is authorized under the Plan to award any type of arrangement to an Employee, Director or
Consultant that is not inconsistent with the provisions of the Plan and that by its terms involves or might involve the issuance of (i) Shares, (ii) cash or (iii) an Option, a SAR, or similar right with a fixed or variable price related to the Fair
Market Value of the Shares and with an exercise or conversion privilege related to the passage of time, the occurrence of one or more events, or the satisfaction of performance criteria or other conditions. Such awards include, without limitation,
Options, SARs, sales or bonuses of Restricted Stock, Restricted Stock Units or Dividend Equivalent Rights, and an Award may consist of one such security or benefit, or two (2) or more of them in any combination or alternative. 
  
 b. DESIGNATION OF AWARD. Each Award shall be designated in
the Award Agreement. In the case of an Option, the Option shall be designated as either an Incentive Stock Option or a Non-Qualified Stock Option. However, notwithstanding such designation, to the extent that the aggregate Fair Market Value of
Shares subject to Options designated as Incentive Stock Options which become exercisable for the first time by a Grantee during any calendar year (under all plans of the Company or any Parent or Subsidiary of the Company) exceeds $100,000, such
excess Options, to the extent of the Shares covered thereby in excess of the foregoing limitation, shall be treated as Non-Qualified Stock Options. For this purpose, Incentive STOCK OPTIONS shall be taken into account in the order in which they were
granted, and the Fair Market Value of the Shares shall be determined as of the grant date of the relevant Option. 
  
 c. CONDITIONS OF AWARD. Subject to the terms of the Plan, the Administrator shall determine the provisions, terms, and conditions of each
Award including, but not limited to, the Award vesting schedule, repurchase provisions, rights of first refusal, forfeiture provisions, form of payment (cash, Shares, or other consideration) upon settlement of the Award, payment contingencies, and
satisfaction of any performance criteria. The performance criteria established by the Administrator may be based on any one of, or combination of, the following: (i) increase in share price, (ii) earnings per share, (iii) total stockholder return,
(iv) operating margin, (v) gross margin, (vi) return on equity, (vii) return on assets, (viii) return on investment, (ix) operating income, (x) net operating income, (xi) pre-tax profit, (xii) cash flow, (xiii) revenue, (xiv) expenses, (xv) earnings
before interest, taxes and depreciation, (xvi) economic value added, (xvii) market share, (xviii) personal management objectives, and (xix) other measures of performance selected by the Administrator. Partial achievement of the specified criteria
may result in a payment or vesting corresponding to the degree of achievement as specified in the Award Agreement. 
  

 9 

 d. ACQUISITIONS AND OTHER TRANSACTIONS. The Administrator may issue Awards under the Plan
in settlement, assumption or substitution for, outstanding awards or obligations to grant future awards in connection with the Company or a Related Entity acquiring another entity, an interest in another entity or an additional interest in a Related
Entity whether by merger, stock purchase, asset purchase or other form of transaction. 
  
 e. DEFERRAL OF AWARD PAYMENT. The Administrator may establish one or more programs under the Plan to permit selected Grantees the
opportunity to elect to defer receipt of consideration upon exercise of an Award, satisfaction of performance criteria, or other event that absent the election would entitle the Grantee to payment or receipt of Shares or other consideration under an
Award. The Administrator may establish the election procedures, the timing of such elections, the mechanisms for payments of, and accrual of interest or other earnings, if any, on amounts, Shares or other consideration so deferred, and such other
terms, conditions, rules and procedures that the Administrator deems advisable for the administration of any such deferral program. 
  
 f. SEPARATE PROGRAMS. The Administrator may establish one or more separate programs under the Plan for the purpose of issuing particular
forms of Awards to one or more classes of Grantees on such terms and conditions as determined by the Administrator from time to time. 
  
 g. INDIVIDUAL LIMITATIONS ON AWARDS. 
  
 (i) INDIVIDUAL LIMIT FOR OPTIONS AND SARS. The maximum number of Shares with respect to which Options and SARs may be granted to any
Grantee in any fiscal year of the Company shall be 500,000 Shares. In connection with a Grantee’s commencement of Continuous Service, a Grantee may be granted Options or SARs for up to an additional 500,000 Shares which shall not count against
the limit set forth in the previous sentence. The foregoing limitations shall be adjusted proportionately in connection with any change in the Company’s capitalization pursuant to Section 9, below. To the extent required by Section 162(m) of
the Code or the regulations thereunder, in applying the foregoing limitations with respect to a Grantee, if any Option or SAR is canceled, the canceled Option or SAR shall continue to count against the maximum number of Shares with respect to which
Options and SARs may be granted to the Grantee. For this purpose, the repricing of an Option (or in the case of a SAR, the base amount on which the stock appreciation is calculated is reduced to reflect a reduction in the Fair Market Value of the
Common Stock) shall be treated as the cancellation of the existing Option or SAR and the grant of a new Option or SAR. 
  
 (ii) INDIVIDUAL LIMIT FOR RESTRICTED STOCK AND RESTRICTED STOCK UNITS. For awards of Restricted Stock and Restricted Stock Units that are
intended to be Performance-Based Compensation, the maximum number of Shares with respect to which such Awards may be granted to any Grantee in any fiscal year of the Company shall be 500,000 Shares. The foregoing limitation shall be adjusted
proportionately in connection with any change in the Company’s capitalization pursuant to Section 9, below. 
  

 10 

 (iii) DEFERRAL. If the vesting or receipt of Shares under an Award is deferred to a later
date, any amount (whether denominated in Shares or cash) paid in addition to the original number of Shares subject to such Award will not be treated as an increase in the number of Shares subject to the Award if the additional amount is based either
on a reasonable rate of interest or on one or more predetermined actual investments such that the amount payable by the Company at the later date will be based on the actual rate of return of a specific investment (including any decrease as well as
any increase in the value of an investment). 
  
 h. EARLY EXERCISE. The Award Agreement may, but need not, include a provision whereby the Grantee may elect at any time while an Employee, Director or Consultant to exercise any part or all of the Award prior to full vesting of the Award.
Any unvested Shares received pursuant to such exercise may be subject to a repurchase right in favor of the Company or a Related Entity or to any other restriction the Administrator determines to be appropriate. 
  
 i. TERM OF AWARD. The term of each Award shall be no more
than seven (7) years from the date of grant thereof (excluding any period for which the Grantee has elected to defer the receipt of the Shares or cash issuable pursuant to the Award). However, in the case of an Incentive Stock Option granted to a
Grantee who, at the time the Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary of the Company, the term of the Incentive Stock Option shall
be five (5) years from the date of grant thereof or such shorter term as may be provided in the Award Agreement (excluding any period for which the Grantee has elected to defer the receipt of the Shares issuable pursuant to the Incentive Stock
Option). 
  
 j. TRANSFERABILITY OF AWARDS.
Incentive Stock Options may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Grantee, only by the
Grantee. Non-Qualified Stock Options and other Awards shall be transferable (i) by will or by the laws of descent and distribution and (ii) during the lifetime of the Grantee, to the extent and in the manner authorized by the Administrator.
Notwithstanding the foregoing, the Grantee may designate one or more beneficiaries of the Grantee’s Incentive Stock Option or Non-Qualified Stock Option in the event of the Grantee’s death on a beneficiary designation form provided by the
Administrator. 
  
 k. TIME OF GRANTING AWARDS.
The date of grant of an Award shall for all purposes be the date on which the Administrator makes the determination to grant such Award, or such other date as is determined by the Administrator. 
  
 7. AWARD EXERCISE OR PURCHASE PRICE, CONSIDERATION AND TAXES. 
  
 a. EXERCISE OR PURCHASE PRICE. The exercise or purchase
price, if any, for an Award shall be as follows: 
  
 (i) In the case of an Incentive Stock Option: 
  
 (A) granted to an Employee who, at the time of the grant of such Incentive Stock Option owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or
Subsidiary of the Company, the per Share exercise price shall be not less than one hundred ten percent (110%) of the Fair Market Value per Share on the date of grant; or 
  

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 (B) granted to any Employee other than an Employee described in the preceding paragraph,
the per Share exercise price shall be not less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant. 
  
 (ii) In the case of Non-Qualified Stock Options, the exercise price shall be not less than one hundred percent (100%) of the Fair Market
Value per Share on the date of grant. 
  
 (iii)
In the case of SARs, the base appreciation amount shall be not less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant. 
  
 (iv) In the case of other Awards, such price as is determined by the Administrator. 
  
 (v) Notwithstanding the foregoing provisions of this Section
6(a), in the case of an Award issued pursuant to Section 5(d), above, the exercise or purchase price for the Award shall be determined in accordance with the provisions of the relevant instrument evidencing the agreement to issue such Award.

  
 b. CONSIDERATION. Subject to Applicable Laws,
the consideration to be paid for the Shares to be issued upon exercise or purchase of an Award including the method of payment, shall be determined by the Administrator (and, in the case of an Incentive Stock Option, shall be determined at the time
of grant). In addition to any other types of consideration the Administrator may determine, the Administrator is authorized to accept as consideration for Shares issued under the Plan the following: 
  
 (i) cash; 
  
 (ii) check; 
  
 (iii) surrender of Shares or delivery of a properly executed
form of attestation of ownership of Shares as the Administrator may require which have a Fair Market Value on the date of surrender or attestation equal to the aggregate exercise price of the Shares as to which said Award shall be exercised,
provided, however, that Shares acquired under the Plan or any other equity compensation plan or agreement of the Company must have been held by the Grantee for a period of more than six (6) months (and not used for another Award exercise by
attestation during such period); 
  
 (iv) with
respect to Options, payment through a broker-dealer sale and remittance procedure pursuant to which the Grantee (A) shall provide written instructions to a 

  

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Company designated brokerage firm to effect the immediate sale of some or all of the purchased Shares and remit to the Company sufficient funds to cover the
aggregate exercise price payable for the purchased Shares and (B) shall provide written directives to the Company to deliver the certificates for the purchased Shares directly to such brokerage firm in order to complete the sale transaction; or

  
 (v) any combination of the foregoing methods
of payment. 
  
 c. TAXES. No Shares shall be
delivered under the Plan to any Grantee or other person until such Grantee or other person has made arrangements acceptable to the Administrator for the satisfaction of any non-U.S., federal, state, or local income and employment tax withholding
obligations, including, without limitation, obligations incident to the receipt of Shares or the disqualifying disposition of Shares received on exercise of an Incentive Stock Option. Upon exercise of an Award the Company shall withhold or collect
from Grantee an amount sufficient to satisfy such tax obligations. 
  
 8. EXERCISE OF AWARD. 
  
 a. PROCEDURE
FOR EXERCISE; RIGHTS AS A STOCKHOLDER. 
  
 (i)
Any Award granted hereunder shall be exercisable at such times and under such conditions as determined by the Administrator under the terms of the Plan and specified in the Award Agreement. 
  
 (ii) An Award shall be deemed to be exercised when written
notice of such exercise has been given to the Company in accordance with the terms of the Award by the person entitled to exercise the Award and full payment for the Shares with respect to which the Award is exercised, including, to the extent
selected, use of the broker-dealer sale and remittance procedure to pay the purchase price as provided in Section 6(b)(iv). 
  
 b. EXERCISE OF AWARD FOLLOWING TERMINATION OF CONTINUOUS SERVICE. 
  
 (i) An Award may not be exercised after the termination date of such Award set forth in the Award Agreement
and may be exercised following the termination of a Grantee’s Continuous Service only to the extent provided in the Award Agreement. 
  
 (ii) Where the Award Agreement permits a Grantee to exercise an Award following the termination of the Grantee’s Continuous Service
for a specified period, the Award shall terminate to the extent not exercised on the last day of the specified period or the last day of the original term of the Award, whichever occurs first. 
  
 (iii) Any Award designated as an Incentive Stock Option to
the extent not exercised within the time permitted by law for the exercise of Incentive Stock Options following the termination of a Grantee’s Continuous Service shall convert automatically to a Non-Qualified Stock Option and thereafter shall
be exercisable as such to the extent exercisable by its terms for the period specified in the Award Agreement. 
  

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 9. CONDITIONS UPON ISSUANCE OF SHARES. 
  
 a. Shares shall not be issued pursuant to the exercise of an Award unless the exercise of such Award and the
issuance and delivery of such Shares pursuant thereto shall comply with all Applicable Laws, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 
  
 b. As a condition to the exercise of an Award, the Company
may require the person exercising such Award to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of
counsel for the Company, such a representation is required by any Applicable Laws. 
  
 10. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION. Subject to any required action by the stockholders of the Company, the number of Shares covered by each outstanding Award, and the number of Shares which have been
authorized for issuance under the Plan but as to which no Awards have yet been granted or which have been returned to the Plan, the exercise or purchase price of each such outstanding Award, the maximum number of Shares with respect to which Awards
may be granted to any Grantee in any fiscal year of the Company, as well as any other terms that the Administrator determines require adjustment shall be proportionately adjusted for (i) any increase or decrease in the number of issued Shares
resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Shares, or similar transaction affecting the Shares, (ii) any other increase or decrease in the number of issued Shares effected without
receipt of consideration by the Company, or (iii) as the Administrator may determine in its discretion, any other transaction with respect to Common Stock including a corporate merger, consolidation, acquisition of property or stock, separation
(including a spin-off or other distribution of stock or property), reorganization, liquidation (whether partial or complete) or any similar transaction; provided, however that conversion of any convertible securities of the Company shall not be
deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Administrator and its determination shall be final, binding and conclusive. Except as the Administrator determines, no issuance by the
Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason hereof shall be made with respect to, the number or price of Shares subject to an Award. 
  
 11. CORPORATE TRANSACTIONS AND CHANGES IN CONTROL. 
  
 a. TERMINATION OF AWARD TO EXTENT NOT ASSUMED IN CORPORATE
TRANSACTION. Effective upon the consummation of a Corporate Transaction, all outstanding Awards under the Plan shall terminate. However, all such Awards shall not terminate to the extent they are Assumed in connection with the Corporate Transaction.

  

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 b. ACCELERATION OF AWARD UPON CORPORATE TRANSACTION OR CHANGE IN CONTROL. 
  
 (i) CORPORATE TRANSACTION. Except as provided otherwise in
an individual Award Agreement, in the event of a Corporate Transaction, for the portion of each Award that is neither Assumed nor Replaced, such portion of the Award shall automatically become fully vested and exercisable and be released from any
repurchase or forfeiture rights (other than repurchase rights exercisable at fair market value) for all of the Shares at the time represented by such portion of the Award, immediately prior to the specified effective date of such Corporate
Transaction. 
  
 (ii) CHANGE IN CONTROL. Except
as provided otherwise in an individual Award Agreement, in the event of a Change in Control (other than a Change in Control which also is a Corporate Transaction), each Award which is at the time outstanding under the Plan automatically shall become
fully vested and exercisable and be released from any repurchase or forfeiture rights (other than repurchase rights exercisable at fair market value), immediately prior to the specified effective date of such Change in Control, for all of the Shares
at the time represented by such Award. 
  
 c.
EFFECT OF ACCELERATION ON INCENTIVE STOCK OPTIONS. Any Incentive Stock Option accelerated under this Section 10 in connection with a Corporate Transaction or Change in Control shall remain exercisable as an Incentive Stock Option under the Code only
to the extent the $100,000 dollar limitation of Section 422(d) of the Code is not exceeded. To the extent such dollar limitation is exceeded, the excess Options shall be treated as Non-Qualified Stock Options. 
  
 12. EFFECTIVE DATE AND TERM OF PLAN. The Plan shall become effective upon its
approval by the stockholders of the Company. It shall continue in effect for a term of ten (10) years unless sooner terminated. Subject to Applicable Laws, Awards may be granted under the Plan upon its becoming effective. 
  
 13. AMENDMENT, SUSPENSION OR TERMINATION OF THE PLAN. 
  
 a. The Board may at any time amend, suspend or terminate the
Plan; provided, however, that no such amendment shall be made without the approval of the Company’s stockholders to the extent such approval is required by Applicable Laws, or if such amendment would change any of the provisions of Section
4(b)(vi) or this Section 13(a). 
  
 b. No Award
may be granted during any suspension of the Plan or after termination of the Plan. 
  
 c. No suspension or termination of the Plan (including termination of the Plan under Section 11, above) shall adversely affect any rights
under Awards already granted to a Grantee. 
  

 15 

 14. RESERVATION OF SHARES. 
  
 a. The Company, during the term of the Plan, will at all times reserve and keep available such number of
Shares as shall be sufficient to satisfy the requirements of the Plan. 
  
 b. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares
hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 
  
 15. No Effect on Terms of Employment/Consulting Relationship. The Plan shall not confer upon any Grantee any right with
respect to the Grantee’s Continuous Service, nor shall it interfere in any way with his or her right or the right of the Company or any Related Entity to terminate the Grantee’s Continuous Service at any time, with or without Cause, and
with or without notice. The ability of the Company or any Related Entity to terminate the employment of a Grantee who is employed at will is in no way affected by its determination that the Grantee’s Continuous Service has been terminated for
Cause for the purposes of this Plan. 
  
 16. No Effect on
Retirement and Other Benefit Plans. Except as specifically provided in a retirement or other benefit plan of the Company or a Related Entity, Awards shall not be deemed compensation for purposes of computing benefits or contributions under any
retirement plan of the Company or a Related Entity, and shall not affect any benefits under any other benefit plan of any kind or any benefit plan subsequently instituted under which the availability or amount of benefits is related to level of
compensation. The Plan is not a “Retirement Plan” or “Welfare Plan” under the Employee Retirement Income Security Act of 1974, as amended. 
  

17. Unfunded Obligation. Grantees shall have the status of general unsecured creditors of the Company. Any amounts payable to Grantees pursuant to the
Plan shall be unfunded and unsecured obligations for all purposes, including, without limitation, Title I of the Employee Retirement Income Security Act of 1974, as amended. Neither the Company nor any Related Entity shall be required to segregate
any monies from its general funds, or to create any trusts, or establish any special accounts with respect to such obligations. The Company shall retain at all times beneficial ownership of any investments, including trust investments, which the
Company may make to fulfill its payment obligations hereunder. Any investments or the creation or maintenance of any trust or any Grantee account shall not create or constitute a trust or fiduciary relationship between the Administrator, the Company
or any Related Entity and a Grantee, or otherwise create any vested or beneficial interest in any Grantee or the Grantee’s creditors in any assets of the Company or a Related Entity. The Grantees shall have no claim against the Company or any
Related Entity for any changes in the value of any assets that may be invested or reinvested by the Company with respect to the Plan. 
  

 16

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