Document:

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this “Agreement”)
is made and entered into this 13th day of October 2014, by and between NCL (Bahamas) Ltd., a company organized under
the laws of Bermuda (the “Company”), and Andrew Madsen (the “Executive”).

 

RECITALS

 

THE PARTIES ENTER THIS AGREEMENT on the
basis of the following facts, understandings and intentions:

 

A.           The
Company desires to offer the Executive the benefits set forth in this Agreement and provide for the services of the Executive on
the terms and conditions set forth in this Agreement.

 

B.           The
Executive desires to be employed by the Company on the terms and conditions set forth in this Agreement.

 

C.           This
Agreement shall govern the employment relationship between the Executive and the Company and all of its affiliates from and after
the date hereof, and supersedes and negates any previous agreements with respect to such relationship.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the
above recitals incorporated herein and the mutual covenants and promises contained herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby expressly acknowledged, the parties agree as follows:

 

		1.	Retention and Duties.   

 

		1.1	Retention. The Company does hereby agree to employ the Executive for the Period of Employment (as such term is
defined in Section 2) on the terms and conditions expressly set forth in this Agreement. The Executive does hereby accept and agree
to such employment, on the terms and conditions expressly set forth in this Agreement.

 

		1.2	Duties.   During the Period of Employment, the Executive shall serve the Company as its President and Chief Operating
Officer, and shall be appointed to such position on the first day of the Period of Employment. The Executive shall have duties
and obligations generally consistent with that position as the Company may assign from time to time. The Executive shall comply
with the corporate policies of the Company as they are in effect from time to time throughout the Period of Employment (including,
without limitation, the

 

    	 

    	 

    

  

Company’s Code of Ethical Business
Conduct policy, as it may change from time to time). During the Period of Employment, the Executive shall report directly to the
Chief Executive Officer of the Company. During the Period of Employment, the Executive shall perform services for Norwegian Cruise
Line Holdings Ltd., a company organized under the laws of Bermuda (the “Parent”), and the Parent’s other
subsidiaries, but shall not be entitled to any additional compensation with respect to such services.

 

		1.3	No Other Employment; Minimum Time Commitment.   During the Period of Employment, the Executive shall (i) devote
substantially all of the Executive’s business time, energy and skill to the performance of the Executive’s duties for
the Company, (ii) perform such duties in a faithful, effective and efficient manner to the best of Executive’s abilities,
and (iii) hold no other employment. The Executive’s service on the boards of directors (or similar body) of other business
entities is subject to the approval of the Board of Directors of the Parent (the “Board”), provided that the
Executive shall be permitted to serve on one board of directors (or similar bodies) during the Period of Employment, subject to
the Company’s rights to require the Executive’s resignation pursuant to the following sentence. The Company shall have
the right to require the Executive to resign from any board or similar body (including, without limitation, any association, corporate,
civic or charitable board or similar body) which he may then serve if the Board reasonably determines that the Executive’s
service on such board or body materially interferes with the effective discharge of the Executive’s duties and responsibilities
or that any business related to such service is then in competition with any business of the Company or any of its Affiliates (as
such term is defined in Section 5.5), successors or assigns.

 

		1.4	No Breach of Contract.   The Executive hereby represents to the Company that: (i) the execution and delivery of
this Agreement by the Executive and the Company and the performance by the Executive of the Executive’s duties hereunder
do not and shall not constitute a breach of, conflict with, or otherwise contravene or cause a default under, the terms of any
other agreement or policy to which the Executive is a party or otherwise bound or any judgment, order or decree to which the Executive
is subject; (ii) that the Executive has no information (including, without limitation, confidential information and trade secrets)
relating to any other Person (as such term is defined in Section 5.5) which would prevent, or be violated by, the Executive entering
into this Agreement or carrying out Executive’s duties hereunder; (iii) the Executive is not bound by any employment, consulting,
non-compete, confidentiality, trade secret or similar agreement (other than this Agreement) with any other Person; and (iv) the
Executive understands the Company will rely upon the accuracy and truth of the representations and warranties of the Executive
set forth herein and the Executive consents to such reliance.

 

		1.5	Location.   During the Period of Employment, the Executive’s principal place of employment shall be the Company’s
principal executive office as it may be located from time to time. The Executive agrees that he will be regularly present

 

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at the Company’s principal executive
office. The Executive acknowledges that he will be required to travel from time to time in the course of performing Executive’s
duties for the Company.

 

		2.	Period of Employment.   The “Period of Employment” shall be a period of one year commencing
on a date on or prior to October 13, 2014 that is mutually agreed to by the Executive and the Chief Executive Officer of the Company
(the “Effective Date”) and ending at the close of business on the first anniversary of the Effective Date (the
“Termination Date”); provided, however, that this Agreement shall be automatically renewed, and the Period of
Employment shall be automatically extended for one (1) additional year on the Termination Date and each anniversary of the Termination
Date thereafter, unless either party gives written notice at least sixty (60) days prior to the expiration of the Period of Employment
(including any renewal thereof) of such party’s desire to terminate the Period of Employment (such notice to be delivered
in accordance with Section 18). The term “Period of Employment” shall include any extension thereof pursuant to the
preceding sentence. Provision of notice that the Period of Employment shall not be extended or further extended, as the case may
be, shall not constitute a breach of this Agreement and shall not constitute a termination by the Company without Cause for purposes
of this Agreement. Notwithstanding the foregoing, the Period of Employment is subject to earlier termination as provided below
in this Agreement.

 

		3.	Compensation.   

 

		3.1	Base Salary.   During the Period of Employment, the Company shall pay the Executive a base salary (the “Base
Salary”), which shall be paid biweekly or in such other installments as shall be consistent with the Company’s
regular payroll practices in effect from time to time. The Executive’s Base Salary shall be at an annualized rate of Seven
Hundred Fifty thousand dollars ($750,000.00). The Compensation Committee of the Board (the “Compensation Committee”)
will review the Executive’s rate of Base Salary on an annual basis and may, in its sole discretion, increase (but not decrease)
the rate then in effect.

 

		3.2	Incentive Bonus.   Beginning with the 2015 fiscal year, the Executive shall be eligible to receive an incentive
bonus for each fiscal year of the Company that occurs during the Period of Employment (“Incentive Bonus”); provided
that the Executive must be employed by the Company at the time the Company pays the Incentive Bonus with respect to any such fiscal
year in order to be eligible for an Incentive Bonus with respect to that fiscal year (and, if the Executive is not so employed
at such time, in no event shall he have been considered to have “earned” any Incentive Bonus with respect to the fiscal
year in question). The Executive’s target Incentive Bonus amount for a particular fiscal year of the Company shall equal
75% of the Executive’s Base Salary paid by the Company to the Executive for that fiscal year (the “Target Bonus”);
provided that the Executive’s actual Incentive Bonus amount for a particular fiscal year shall be determined by the Compensation
Committee in its sole discretion, based on performance objectives (which may include corporate, business unit or division, financial,
strategic, individual or other objectives) established with respect to that

 

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particular fiscal year by the Compensation
Committee. Any Incentive Bonus becoming payable for a particular fiscal year shall be paid in the following fiscal year, provided
that the Executive must be employed by the Company at the time the Company pays the Incentive Bonus. For the avoidance of doubt,
the Executive shall not be eligible to earn an Incentive Bonus for the portion of the Company’s 2014 fiscal year that occurs
following the Effective Date.

 

		3.3	Equity Award.   The Company shall recommend that the Parent grant the Executive an award of one hundred fifty thousand
(150,000) non-qualified stock options to acquire the Parent’s ordinary shares as soon as practicable after the Effective
Date. All stock options granted pursuant to this Section 3.3 shall (i) be granted under the Parent’s 2013 Performance Incentive
Plan (together with any successor equity incentive plan, the “Parent Equity Plan”), (ii) have an exercise
price equal to the closing market price of the Parent’s ordinary shares on the date of grant, (iii) have an ordinary term
of ten (10) years (which is subject to earlier termination in accordance with the terms of the Parent Equity Plan), (iv) subject
to the Executive’s continued employment through each vesting date, vest in four equal annual installments on each of the
first four anniversaries of the Effective Date following the date of grant, (v) become immediately vested upon the occurrence of
a Sale of the Company (as such term is defined in the Amended and Restated Shareholders’ Agreement of the Parent dated as
of January 24, 2013, as amended), subject to the Executive’s continued employment through immediately prior to such Sale
of the Company, and (vi) be subject to the terms of the Parent Equity Plan and the option agreement in the Parent’s customary
form evidencing the awards. The number of ordinary shares subject to the stock options to be granted pursuant to this Section 3.3
is subject to equitable and proportional adjustments to reflect stock splits, stock dividends, mergers, combinations and similar
extraordinary corporate transactions in a manner consistent with the terms of the Parent Equity Plan. Beginning with the 2015 fiscal
year, the Executive shall be eligible to receive additional equity awards under the Parent Equity Plan on the same schedule as
the Company’s other senior executives. Any future equity awards will have terms and will be granted at award levels that
are generally consistent with awards granted to the Company’s other senior executives (with appropriate consideration given
to the Executive’s position as President and Chief Operating Officer).

 

		4.	Benefits.   

 

		4.1	Retirement, Welfare and Fringe Benefits.   During the Period of Employment, the Executive shall be entitled to
participate, on a basis generally consistent with other senior executives, in all employee pension and welfare benefit plans and
programs, all fringe benefit plans and programs and all other benefit plans and programs (including those providing for perquisites
or similar benefits) that are made available by the Company to the Company’s other senior executives generally, in accordance
with the eligibility and participation provisions of such plans and as such plans or programs may be in effect from time to time.
The Executive’s participation in the foregoing plans and programs is subject to the

 

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eligibility and participation provisions
of such plans, and the Company’s right to amend or terminate such plans from time to time in accordance with their terms.

 

		4.2	Medical Executive Reimbursement Plan.   During the Period of Employment, the Company will provide the Executive,
and the Executive’s spouse and dependent children, with a Medical Executive Reimbursement Plan, subject to the terms and
conditions of such plan. Reimbursement under said plan shall be limited to a maximum of fifteen thousand dollars ($15,000) in any
calendar year.

 

		4.3	Company Automobile.   During the Period of Employment, the Company shall provide the Executive with a monthly cash
car allowance of up to one thousand five hundred dollars ($1,500.00) per month, in accordance with the Company’s policy as
in effect from time to time.

 

		4.4	Reimbursement of Business Expenses.   The Executive is authorized to incur reasonable expenses in carrying out
the Executive’s duties for the Company under this Agreement and shall be entitled to reimbursement for all reasonable business
expenses the Executive incurs during the Period of Employment in connection with carrying out the Executive’s duties for
the Company, subject to the Company’s expense reimbursement policies and any pre-approval policies in effect from time to
time.

 

		4.5	Vacation and Other Leave.   During the Period of Employment, the Executive’s annual rate of vacation accrual
shall be four (4) weeks per year; provided that such vacation shall accrue on a bi-weekly basis in accordance with the Company’s
regular payroll cycle and be subject to the Company’s vacation policies in effect from time to time. The Executive shall
also be entitled to all other holiday and leave pay generally available to other senior executives of the Company.

 

		4.6	Relocation Expenses.   In connection with, and subject to, the Executive’s commencement of Employment on
the Effective Date, the Executive shall be entitled to reimbursement of up to one hundred and twenty five thousand dollars ($125,000.00)
for all reasonable relocation expenses the Executive incurs, subject to the Company’s relocation policies and any pre-approval
policies in effect from time to time. The Executive shall be required to reimburse the Company for 100% of the amount of any relocation
expenses paid by the Company pursuant to this Section 4.6 if the Executive’s employment is terminated at any time prior to
the first anniversary of the Effective Date by the Company with Cause (as such term is defined in Section 5.5) or by the Executive
for any reason. To the extent any relocation expenses paid by the Company pursuant to this Section 4.6 are taxable to the Executive,
such expenses shall be reimbursed by the Company to the Executive in the same calendar year in which the expenses were incurred
(or if later, within two and one half months after the date the expenses were incurred), and the Executive shall be required to
submit any required reimbursement paperwork to the Company within thirty (30) days after the expenses were incurred.

 

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		5.	Termination.   

 

		5.1	Termination by the Company.   The Executive’s employment by the Company, and the Period of Employment, may
be terminated at any time by the Company: (i) with Cause (as such term is defined in Section 5.5), or (ii) without Cause, or (iii)
in the event of the Executive’s death, or (iv) in the event that the Board determines in good faith that the Executive has
a Disability (as such term is defined in Section 5.5).

 

		5.2	Termination by the Executive.   The Executive’s employment by the Company, and the Period of Employment,
may be terminated by the Executive with no less than sixty (60) days advance written notice to the Company (such notice to be delivered
in accordance with Section 18).

 

		5.3	Benefits Upon Termination.   If the Executive’s employment by the Company is terminated during the Period
of Employment for any reason by the Company or by the Executive, or upon or following the expiration of the Period of Employment
(in any case, the date that the Executive’s employment by the Company terminates is referred to as the “Severance
Date”), the Company shall have no further obligation to make or provide to the Executive, and the Executive shall have
no further right to receive or obtain from the Company, any payments or benefits except as follows:

 

		(a)	The Company shall pay the Executive (or, in the event of Executive’s death, the Executive’s estate) any Accrued
Obligations (as such term is defined in Section 5.5);

 

		(b)	If, during the Period of Employment, the Executive’s employment with the Company is terminated by the Company without
Cause (and other than due to the Executive’s death or in connection with a good faith determination by the Board that the
Executive has a Disability), the Executive shall be entitled to the following benefits:

 

		(i)	The Company shall pay the Executive (in addition to the Accrued Obligations), subject to tax withholding and other authorized
deductions, an amount equal to one times Executive’s Base Salary at the annualized rate in effect on the Severance Date.
Such amount is referred to hereinafter as the “Severance Benefit.” Subject to Section 5.7(a), the Company shall
pay the Severance Benefit to the Executive in substantially equal installments in accordance with the Company’s standard
payroll practices over a period of twelve (12) consecutive months, with the first installment payable in the month following the
month in which the Executive’s Separation from Service (as such term is defined in Section 5.5) occurs. (For purposes of
clarity, each such installment shall equal the applicable fraction of the aggregate Severance Benefit. For example, if such installments
were to be made on a monthly basis,

 

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each installment would equal one-twelfth
(1/12th) of the Severance Benefit.)

 

		(ii)	Subject to the Executive’s continued payment of the same percentage of the applicable premiums as he was paying on the
Severance Date, the Company will pay or reimburse the Executive for Executive’s premiums charged to continue medical coverage
pursuant to the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), at the same or reasonably equivalent
medical coverage for the Executive (and, if applicable, the Executive’s eligible dependents) as in effect immediately prior
to the Severance Date, to the extent that the Executive elects such continued coverage; provided that the Company’s obligation
to make any payment or reimbursement pursuant to this clause (ii) shall, subject to Section 5.7(a), commence with continuation
coverage for the month following the month in which the Executive’s Separation from Service occurs and shall cease with continuation
coverage for the twelfth month following the month in which the Executive’s Separation from Service occurs (or, if earlier,
shall cease upon the first to occur of the Executive’s death, the date the Executive becomes eligible for coverage under
the health plan of a future employer, or the date the Company ceases to offer group medical coverage to its active executive employees
or the Company is otherwise under no obligation to offer COBRA continuation coverage to the Executive). To the extent the Executive
elects COBRA coverage, he shall notify the Company in writing of such election prior to such coverage taking effect and complete
any other continuation coverage enrollment procedures the Company may then have in place.

 

		(c)	Notwithstanding the foregoing provisions of this Section 5.3, if the Executive breaches Executive’s obligations under
Section 6 of this Agreement at any time, from and after the date of such breach and not in any way in limitation of any right or
remedy otherwise available to the Company, the Executive will no longer be entitled to, and the Company will no longer be obligated
to pay, any remaining unpaid portion of the Severance Benefit or to any continued Company-paid or reimbursed coverage pursuant
to Section 5.3(b)(ii); provided that, if the Executive provides the release contemplated by Section 5.4, in no event shall the
Executive be entitled to a Severance Benefit payment of less than $5,000, which amount the parties agree is good and adequate consideration,
in and of itself, for the Executive’s release contemplated by Section 5.4.

 

		(d)	The foregoing provisions of this Section 5.3 shall not affect: (i) the Executive’s receipt of benefits otherwise due
terminated employees under group insurance coverage consistent with the terms of the applicable Company welfare benefit plan; or
(ii) the Executive’s rights under

 

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COBRA to continue participation in medical,
dental, hospitalization and life insurance coverage.

 

		5.4	Release; Exclusive Remedy.   

 

		(a)	This Section 5.4 shall apply notwithstanding anything else contained in this Agreement or any stock option or other equity-based
award agreement to the contrary. As a condition precedent to any Company obligation to the Executive pursuant to Section 5.3(b)
or any other obligation to accelerate vesting of any equity-based award in connection with the termination of the Executive’s
employment, the Executive shall, upon or promptly following his last day of employment with the Company (and in any event within
twenty-one (21) days following the Executive’s last day of employment), execute a general release agreement in substantially
the form of Exhibit A (with such amendments that may be necessary to ensure the release is enforceable to the fullest extent permissible
under then applicable law), and such release agreement shall have not been revoked by the Executive pursuant to any revocation
rights afforded by applicable law.

 

		(b)	The Executive agrees that the payments and benefits contemplated by Section 5.3 (and any applicable acceleration of vesting
of an equity-based award in accordance with the terms of such award in connection with the termination of the Executive’s
employment) shall constitute the exclusive and sole remedy for any termination of Executive’s employment and the Executive
covenants not to assert or pursue any other remedies, at law or in equity, with respect to any termination of employment. The Company
and the Executive acknowledge and agree that there is no duty of the Executive to mitigate damages under this Agreement. All amounts
paid to the Executive pursuant to Section 5.3 shall be paid without regard to whether the Executive has taken or takes actions
to mitigate damages. The Executive agrees to resign, on the Severance Date, as an officer and director of the Company and any Affiliate
of the Company, and as a fiduciary of any benefit plan of the Company or any Affiliate of the Company, and to promptly execute
and provide to the Company any further documentation, as requested by the Company, to confirm such resignation.

 

		5.5	Certain Defined Terms.   

 

		(a)	As used herein, “Accrued Obligations” means:

 

		(i)	any Base Salary that had accrued but had not been paid on or before the Severance Date (including accrued and unpaid vacation
time to the extent that the Executive is entitled to accrued vacation in accordance with the Company’s policy in effect at
the applicable time); and

 

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		(ii)	any reimbursement due to the Executive pursuant to Section 4.4 or Section 4.6 for expenses reasonably incurred by the Executive
on or before the Severance Date and documented and pre-approved, to the extent applicable, in accordance with the Company’s
expense reimbursement policies in effect at the applicable time.

 

		(b)	As used herein, “Affiliate” of the Company means a Person that directly or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with, the Company. As used in this definition, the term
“control,” including the correlative terms “controlling,” “controlled by” and “under
common control with,” means the possession, directly or indirectly, of the power to direct or cause the direction of management
or policies (whether through ownership of securities or any partnership or other ownership interest, by contract or otherwise)
of a Person. For purposes of clarity and without limiting the generality of the foregoing, the term “Affiliate” includes
any Person that meets the definition of “Affiliate” and is, directly or indirectly through any other Person, engaged
in the Business (as such term is defined in Section 6.2) if that Person is controlled by Apollo Global Management, LLC or any of
its affiliated funds or Genting HK and its affiliates. However, any Person that would not otherwise be an Affiliate of the Company
but for its ownership by Apollo Global Management, LLC or its affiliated funds shall not be considered an Affiliate if such Person
is not, directly or indirectly through any other Person, engaged in the Business (as such term is defined in Section 6.2).

 

		(c)	As used herein, “Cause” shall mean, as reasonably determined by a majority of the Board (excluding the Executive,
if he is then a member of the Board) based on the information then known to it, that one or more of the following has occurred:

 

		(i)	the Executive has committed a felony (under the laws of the United States or any relevant state, or a similar crime or offense
under the applicable laws of any relevant foreign jurisdiction), other than through vicarious liability not related to the Company
or any of its Affiliates;

 

		(ii)	the Executive has engaged in acts of fraud, dishonesty or other acts of willful misconduct in the course of Executive’s
duties hereunder;

 

		(iii)	the Executive willfully fails to perform or uphold Executive’s duties under this Agreement and/or willfully fails to
comply with reasonable directives of the Board and/or Chief Executive Officer, in either case after there has been delivered to
the Executive a written demand for performance from the Company and the

 

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Executive fails to remedy such condition(s)
within ten (10) days of receiving such written notice thereof; or

 

		(iv)	any breach by the Executive of the provisions of Section 6, or any material breach by the Executive of any other contract he
is a party to with the Company or any of its Affiliates.

 

		(d)	As used herein, “Disability” shall mean a physical or mental impairment which, as reasonably determined
by the Board, renders the Executive unable to perform the essential functions of Executive’s employment with the Company,
even with reasonable accommodation that does not impose an undue hardship on the Company, for more than 90 days in any 180-day
period, unless a longer period is required by federal or state law, in which case that longer period would apply.

 

		(e)	As used herein, the term “Person” shall be construed broadly and shall include, without limitation, an individual,
a partnership, a limited liability company, a corporation, an association, a joint stock company, a trust, a joint venture, an
unincorporated organization and a governmental entity or any department, agency or political subdivision thereof.

 

		(f)	As used herein, a “Separation from Service” occurs when the Executive dies, retires, or otherwise has a
termination of employment with the Company that constitutes a “separation from service” within the meaning of Treasury
Regulation Section 1.409A-1(h)(1), without regard to the optional alternative definitions available thereunder.

 

		5.6	Notice of Termination.   Any termination of the Executive’s employment under this Agreement shall be communicated
by written notice of termination from the terminating party to the other party. This notice of termination must be delivered in
accordance with Section 18 and must indicate the specific provision(s) of this Agreement relied upon in effecting the termination
and the basis of any termination by the Company for Cause.

 

		5.7	Section 409A.   

 

		(a)	If the Executive is a “specified employee” within the meaning of Treasury Regulation Section 1.409A-1(i) as of
the date of the Executive’s Separation from Service, the Executive shall not be entitled to any payment or benefit pursuant
to Section 5.3(b) until the earlier of (i) the date which is six (6) months after Executive’s Separation from Service
for any reason other than death, or (ii) the date of the Executive’s death. The provisions of this paragraph shall only apply
if, and to the extent, required to avoid the imputation of any tax, penalty or interest pursuant to Section 409A of the Code. For
purposes of clarity, the six (6) month delay shall not apply in the case of any short-term deferral as contemplated by Treasury
Regulation Section 1.409A-1(b)(4) or severance pay

 

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contemplated by Treasury Regulation
Section 1.409A-1(b)(9)(iii) to the extent of the limits set forth therein. Any amounts otherwise payable to the Executive upon
or in the six (6) month period following the Executive’s Separation from Service that are not so paid by reason of this Section
5.7(a) shall be paid (without interest) as soon as practicable (and in all events within thirty (30) days) after the date that
is six (6) months after the Executive’s Separation from Service (or, if earlier, as soon as practicable, and in all events
within thirty (30) days, after the date of the Executive’s death).

 

		(b)	To the extent that any benefits pursuant to Section 5.3(b)(ii) or reimbursements pursuant to Section 4 (other than Section
4.6) are taxable to the Executive, any reimbursement payment due to the Executive pursuant to any such provision shall be paid
to the Executive on or before the last day of the Executive’s taxable year following the taxable year in which the related
expense was incurred. The benefits and reimbursements pursuant to Section 5.3(b)(ii) and Section 4 (other than Section 4.6) are
not subject to liquidation or exchange for another benefit and the amount of such benefits and reimbursements that the Executive
receives in one taxable year shall not affect the amount of such benefits or reimbursements that the Executive receives in any
other taxable year.

 

		(c)	Any installment payments provided for in this Agreement shall be treated as separate payments for purposes of Section 409A
of the Code. This Agreement is intended to comply with the requirements of Section 409A of the Code and shall be interpreted consistent
with this intent so as to avoid the imputation of any tax, penalty or interest pursuant to Section 409A of the Code.

 

		5.8	Possible Limitation of Benefits in Connection with a Change in Control.   Notwithstanding anything contained in
this Agreement to the contrary, if following a change in ownership or effective control or in the ownership of a substantial portion
of assets (in each case, within the meaning of Section 280G of the Code), the tax imposed by Section 4999 of the Code or any similar
or successor tax (the “Excise Tax”) applies to any payments, benefits and/or amounts received by the Executive
pursuant to this Agreement or otherwise, including, without limitation, any acceleration of the vesting of outstanding stock options
or other equity awards (collectively, the “Total Payments”), then the Total Payments shall be reduced (but not
below zero) so that the maximum amount of the Total Payments (after reduction) shall be one dollar ($1.00) less than the amount
which would cause the Total Payments to be subject to the Excise Tax; provided that such reduction to the Total Payments shall
be made only if the total after-tax benefit to the Executive is greater after giving effect to such reduction than if no such reduction
had been made. If such a reduction is required, the Company shall reduce or eliminate the Total Payments by first reducing or eliminating
any cash payments under this Agreement, then by reducing or eliminating any accelerated vesting of stock options, then by reducing
or

 

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eliminating any accelerated vesting of
other equity awards, then by reducing or eliminating any other remaining Total Payments, in each case in reverse order beginning
with the payments which are to be paid the farthest in time from the date of the transaction triggering the Excise Tax. The provisions
of this Section 5.8 shall take precedence over the provisions of any other plan, arrangement or agreement governing the Executive’s
rights and entitlements to any benefits or compensation.

 

		6.	Protective Covenants.   

 

		6.1	Confidential Information; Inventions.   

 

		(a)	The Executive shall not disclose or use at any time, either during the Period of Employment or thereafter, any Confidential
Information (as defined below) of which the Executive is or becomes aware, whether or not such information is developed by Executive,
except to the extent that such disclosure or use is directly related to and required by the Executive’s performance in good
faith of duties for the Company. The Executive will take all appropriate steps to safeguard Confidential Information in Executive’s
possession and to protect it against disclosure, misuse, espionage, loss and theft. The Executive shall deliver to the Company
at the termination of the Period of Employment, or at any time the Company may request, all memoranda, notes, plans, records, reports,
computer tapes and software and other documents and data (and copies thereof) relating to the Confidential Information or the Work
Product (as hereinafter defined) of the business of the Company or any of its Affiliates which the Executive may then possess or
have under Executive’s control. Notwithstanding the foregoing, the Executive may truthfully respond to a lawful and valid
subpoena or other legal process, but shall give the Company the earliest possible notice thereof, shall, as much in advance of
the return date as possible, make available to the Company and its counsel the documents and other information sought, and shall
assist the Company and such counsel in resisting or otherwise responding to such process.

 

		(b)	As used in this Agreement, the term “Confidential Information” means information that is not generally known
to the public and that is used, developed or obtained by the Company or its Affiliates in connection with their businesses, including,
but not limited to, information, observations and data obtained by the Executive while employed by the Company or any predecessors
thereof (including those obtained prior to the Effective Date) concerning (i) the business or affairs of the Company (or such predecessors),
(ii) products or services, (iii) fees, costs and pricing structures, (iv) designs, (v) analyses, (vi) drawings, photographs and
reports, (vii) computer software, including operating systems, applications and program listings, (viii) flow charts, manuals and
documentation, (ix) data bases, (x) accounting and business methods, (xi) inventions, devices, new developments, methods and processes,
whether patentable or

 

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unpatentable and whether or not reduced
to practice, (xii) customers and clients and customer or client lists, (xiii) other copyrightable works, (xiv) all production methods,
processes, technology and trade secrets, and (xv) all similar and related information in whatever form. Confidential Information
will not include any information that has been published (other than a disclosure by the Executive in breach of this Agreement)
in a form generally available to the public prior to the date the Executive proposes to disclose or use such information. Confidential
Information will not be deemed to have been published merely because individual portions of the information have been separately
published, but only if all material features comprising such information have been published in combination.

 

		(c)	As used in this Agreement, the term “Work Product” means all inventions, innovations, improvements, technical
information, systems, software developments, methods, designs, analyses, drawings, reports, service marks, trademarks, trade names,
logos and all similar or related information (whether patentable or unpatentable, copyrightable, registerable as a trademark, reduced
to writing, or otherwise) which relates to the Company’s or any of its Affiliates’ actual or anticipated business,
research and development or existing or future products or services and which are conceived, developed or made by the Executive
(whether or not during usual business hours, whether or not by the use of the facilities of the Company or any of its Affiliates,
and whether or not alone or in conjunction with any other person) while employed by the Company (including those conceived, developed
or made prior to the Effective Date) together with all patent applications, letters patent, trademark, trade name and service mark
applications or registrations, copyrights and reissues thereof that may be granted for or upon any of the foregoing. All Work Product
that the Executive may have discovered, invented or originated during Executive’s employment by the Company or any of its
Affiliates prior to the Effective Date or that she may discover, invent or originate during the Period of Employment or at any
time prior to the Severance Date, shall be the exclusive property of the Company and its Affiliates, as applicable, and Executive
hereby assigns all of Executive’s right, title and interest in and to such Work Product to the Company or its applicable
Affiliate, including all intellectual property rights therein. Executive shall promptly disclose all Work Product to the Company,
shall execute at the request of the Company any assignments or other documents the Company may deem necessary to protect or perfect
its (or any of its Affiliates’, as applicable) rights therein, and shall assist the Company, at the Company’s expense,
in obtaining, defending and enforcing the Company’s (or any of its Affiliates’, as applicable) rights therein. The
Executive hereby appoints the Company as Executive’s attorney-in-fact to execute on Executive’s behalf any assignments
or other documents deemed necessary by the Company to protect or perfect the Company’s (and any of its Affiliates’,
as applicable) rights to any Work Product.

 

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		6.2	Restriction on Competition.   The Executive acknowledges that, in the course of Executive’s employment with
the Company and/or its Affiliates , he has become familiar, or will become familiar, with the Company’s and its Affiliates’
and their predecessors’ trade secrets and with other Confidential Information concerning the Company, its Affiliates and
their respective predecessors and that Executive’s services have been and will be of special, unique and extraordinary value
to the Company and its Affiliates. The Executive agrees that if the Executive were to become employed by, or substantially involved
in, the business of a competitor of the Company or any of its Affiliates during the twelve months following the Severance Date,
it would be very difficult for the Executive not to rely on or use the Company’s and its Affiliates’ trade secrets
and Confidential Information. Thus, to avoid the inevitable disclosure of the Company’s and its Affiliates’ trade secrets
and Confidential Information, and to protect such trade secrets and Confidential Information and the Company’s and its Affiliates’
relationships and goodwill with customers, during the Period of Employment and for a period of twelve months after the Severance
Date, the Executive will not directly or indirectly through any other Person engage in, enter the employ of, render any services
to, have any ownership interest in, nor participate in the financing, operation, management or control of, any Competing Business.
For purposes of this Agreement, the phrase “directly or indirectly through any other Person engage in” shall include,
without limitation, any direct or indirect ownership or profit participation interest in such enterprise, whether as an owner,
stockholder, member, partner, joint venturer or otherwise, and shall include any direct or indirect participation in such enterprise
as an employee, consultant, director, officer, licensor of technology or otherwise. For purposes of this Agreement, “Competing
Business” means a Person anywhere in the continental United States and elsewhere in the world where the Company and its
Affiliates engage in business, or reasonably anticipate engaging in business, on the Severance Date (the “Restricted Area”)
that at any time during the Period of Employment has competed, or at any time during the twelve month period following the Severance
Date competes, with the Company or any of its Affiliates in the provision of travel services, including, without limitation, travel
services related to the cruise ship industry (the “Business”). Nothing herein shall prohibit the Executive from
being a passive owner of not more than 2% of the outstanding stock of any class of a corporation which is publicly traded, so long
as the Executive has no active participation in the business of such corporation.

 

		6.3	Non-Solicitation of Employees and Consultants.   During the Period of Employment and for a period of twenty four
months after the Severance Date, the Executive will not directly or indirectly through any other Person (i) induce or attempt to
induce any employee or independent contractor of the Company or any Affiliate of the Company to leave the employ or service, as
applicable, of the Company or such Affiliate, or in any way interfere with the relationship between the Company or any such Affiliate,
on the one hand, and any employee or independent contractor thereof, on the other hand, or (ii) hire any person who was an employee
of the Company or any Affiliate of the Company until twelve

 

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months after such individual’s employment
relationship with the Company or such Affiliate has been terminated.

 

		6.4	Non-Solicitation of Customers.   During the Period of Employment and for a period of twenty four months after the
Severance Date, the Executive will not directly or indirectly through any other Person influence or attempt to influence customers,
vendors, suppliers, licensors, lessors, joint venturers, associates, consultants, agents, or partners of the Company or any Affiliate
of the Company to divert their business away from the Company or such Affiliate, and the Executive will not otherwise interfere
with, disrupt or attempt to disrupt the business relationships, contractual or otherwise, between the Company or any Affiliate
of the Company, on the one hand, and any of its or their customers, suppliers, vendors, lessors, licensors, joint venturers, associates,
officers, employees, consultants, managers, partners, members or investors, on the other hand.

 

		6.5	Understanding of Covenants.   The Executive represents that he (i) is familiar with and has carefully considered
the foregoing covenants set forth in this Section 6 (together, the “Restrictive Covenants”), (ii) is fully aware
of Executive’s obligations hereunder, (iii) agrees to the reasonableness of the length of time, scope and geographic coverage,
as applicable, of the Restrictive Covenants, (iv) agrees that the Company and its Affiliates currently conduct business throughout
the continental United States and the rest of the world, (v) agrees that the Restrictive Covenants are necessary to protect the
Company’s and its Affiliates’ confidential and proprietary information, good will, stable workforce, and customer relations,
and (vi) agrees that the Restrictive Covenants will continue in effect for the applicable periods set forth above in this Section
6 regardless of whether the Executive is then entitled to receive severance pay or benefits from the Company. The Executive understands
that the Restrictive Covenants may limit Executive’s ability to earn a livelihood in a business similar to the Business of
the Company and any of its Affiliates, but he nevertheless believes that he has received and will receive sufficient consideration
and other benefits as an employee of the Company and as otherwise provided hereunder or as described in the recitals hereto to
clearly justify such restrictions which, in any event (given Executive’s education, skills and ability), the Executive does
not believe would prevent Executive from otherwise earning a living. The Executive agrees that the Restrictive Covenants do not
confer a benefit upon the Company disproportionate to the detriment of the Executive.

 

		6.6	Enforcement.   The Executive agrees that the Executive’s services are unique and that he has access to Confidential
Information and Work Product. Accordingly, without limiting the generality of Section 17, the Executive agrees that a breach by
the Executive of any of the covenants in this Section 6 would cause immediate and irreparable harm to the Company that would be
difficult or impossible to measure, and that damages to the Company for any such injury would therefore be an inadequate remedy
for any such breach. Therefore, the Executive agrees that in the event of any breach or threatened breach of any provision of this

 

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Section 6, the Company shall be entitled,
in addition to and without limitation upon all other remedies the Company may have under this Agreement, at law or otherwise, to
obtain specific performance, injunctive relief and/or other appropriate relief (without posting any bond or deposit) in order to
enforce or prevent any violations of the provisions of this Section 6. The Executive further agrees that the applicable period
of time any Restrictive Covenant is in effect following the Severance Date, as determined pursuant to the foregoing provisions
of this Section 6, shall be extended by the same amount of time that Executive is in breach of any Restrictive Covenant.

 

		7.	Withholding Taxes.   Notwithstanding anything else herein to the contrary, the Company may withhold (or cause there
to be withheld, as the case may be) from any amounts otherwise due or payable under or pursuant to this Agreement such federal,
state and local income, employment, or other taxes as may be required to be withheld pursuant to any applicable law or regulation.

 

		8.	Successors and Assigns.   

 

		(a)	This Agreement is personal to the Executive and without the prior written consent of the Company shall not be assignable by
the Executive otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and
be enforceable by the Executive’s legal representatives.

 

		(b)	This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. Without limiting
the generality of the preceding sentence, the Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree
to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such
succession had taken place. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and
any successor or assignee, as applicable, which assumes and agrees to perform this Agreement by operation of law or otherwise.

 

		9.	Number and Gender; Examples.   Where the context requires, the singular shall include the plural, the plural shall
include the singular, and any gender shall include all other genders. Where specific language is used to clarify by example a general
statement contained herein, such specific language shall not be deemed to modify, limit or restrict in any manner the construction
of the general statement to which it relates.

 

		10.	Section Headings.   The section headings of, and titles of paragraphs and subparagraphs contained in, this Agreement
are for the purpose of convenience only, and they neither form a part of this Agreement nor are they to be used in the construction
or interpretation thereof.

 

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		11.	Governing Law.   THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF FLORIDA,
WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTING PROVISION OR RULE (WHETHER OF THE STATE OF FLORIDA OR ANY OTHER JURISDICTION)
THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF FLORIDA TO BE APPLIED. IN FURTHERANCE OF THE FOREGOING, THE
INTERNAL LAW OF THE STATE OF FLORIDA WILL CONTROL THE INTERPRETATION AND CONSTRUCTION OF THIS AGREEMENT, EVEN IF UNDER SUCH JURISDICTION’S
CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS, THE SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY APPLY.

 

		12.	Severability.   It is the desire and intent of the parties hereto that the provisions of this Agreement be enforced
to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought.
Accordingly, if any particular provision of this Agreement shall be adjudicated by a court of competent jurisdiction to be invalid,
prohibited or unenforceable under any present or future law, and if the rights and obligations of any party under this Agreement
will not be materially and adversely affected thereby, such provision, as to such jurisdiction, shall be ineffective, without invalidating
the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction,
and to this end the provisions of this Agreement are declared to be severable; furthermore, in lieu of such invalid or unenforceable
provision there will be added automatically as a part of this Agreement, a legal, valid and enforceable provision as similar in
terms to such invalid or unenforceable provision as may be possible. Notwithstanding the foregoing, if such provision could be
more narrowly drawn (as to geographic scope, period of duration or otherwise) so as not to be invalid, prohibited or unenforceable
in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of
this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

 

		13.	Entire Agreement; Legal Effect.   This Agreement embodies the entire agreement of the parties hereto respecting
the matters within its scope. This Agreement supersedes all prior and contemporaneous agreements of the parties hereto that directly
or indirectly bear upon the subject matter hereof. Any prior negotiations, correspondence, agreements, proposals or understandings
relating to the subject matter hereof shall be deemed to have been merged into this Agreement, and to the extent inconsistent herewith,
such negotiations, correspondence, agreements, proposals, or understandings shall be deemed to be of no force or effect. There
are no representations, warranties, or agreements, whether express or implied, or oral or written, with respect to the subject
matter hereof, except as expressly set forth herein.

 

		14.	Modifications.   This Agreement may not be amended, modified or changed (in whole or in part), except by a formal,
definitive written agreement expressly referring to this Agreement, which agreement is executed by both of the parties hereto.

 

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		15.	Waiver.   Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege
under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or
privilege preclude any other or further exercise of the same or of any right, remedy, power or privilege, nor shall any waiver
of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or
privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party
asserted to have granted such waiver.

 

		16.	Waiver of Jury Trial.   EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.

 

		17.	Remedies.   Each of the parties to this Agreement and any such person or entity granted rights hereunder whether
or not such person or entity is a signatory hereto shall be entitled to enforce its rights under this Agreement specifically to
recover damages and costs for any breach of any provision of this Agreement and to exercise all other rights existing in its favor.
The parties hereto agree and acknowledge that money damages may not be an adequate remedy for any breach of the provisions of this
Agreement and that each party may in its sole discretion apply to any court of law or equity of competent jurisdiction for specific
performance, injunctive relief and/or other appropriate equitable relief (without posting any bond or deposit) in order to enforce
or prevent any violations of the provisions of this Agreement. Each party shall be responsible for paying its own attorneys’
fees, costs and other expenses pertaining to any such legal proceeding and enforcement regardless of whether an award or finding
or any judgment or verdict thereon is entered against either party.

 

		18.	Notices.   Any notice provided for in this Agreement must be in writing and must be either personally delivered,
transmitted via telecopier, mailed by first class mail (postage prepaid and return receipt requested) or sent by reputable overnight
courier service (charges prepaid) to the recipient at the address below indicated or at such other address or to the attention
of such other person as the recipient party has specified by prior written notice to the sending party. Notices will be deemed
to have been given hereunder and received when delivered personally, when received if transmitted via telecopier, five days after
deposit in the U.S. mail and one day after deposit with a reputable overnight courier service.

 

if to the Company:

 

NCL (Bahamas) Ltd.

7665 Corporate Center Drive

Miami, FL 33126

Facsimile: (305) 436-4101

Attn: Senior Vice President of Human Resources

 

with a copy to:

 

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NCL (Bahamas) Ltd.

7665 Corporate Center Drive

Miami, FL 33126

Facsimile: (305) 436-4101

Attn: Board of Directors

 

if to the Executive, to the address most recently on file
in the payroll records of the Company.

 

		19.	Counterparts.   This Agreement may be executed in any number of counterparts, each of which shall be deemed an
original as against any party whose signature appears thereon, and all of which together shall constitute one and the same instrument.
This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures
of all of the parties reflected hereon as the signatories. Photographic or other electronic copies of such signed counterparts
may be used in lieu of the originals for any purpose.

 

		20.	Legal Counsel; Mutual Drafting.   Each party recognizes that this is a legally binding contract and acknowledges
and agrees that they have had the opportunity to consult with legal counsel of their choice. Each party has cooperated in the drafting,
negotiation and preparation of this Agreement. Hence, in any construction to be made of this Agreement, the same shall not be construed
against either party on the basis of that party being the drafter of such language. The Executive agrees and acknowledges that
he has read and understands this Agreement, is entering into it freely and voluntarily, and has been advised to seek counsel prior
to entering into this Agreement and has had ample opportunity to do so.

 

IN WITNESS WHEREOF, the Company and the Executive have executed
this Agreement as of the date hereof.

 

	 	“COMPANY”
	 	 
	 	NCL (Bahamas), Ltd.
	 	a company organized under the laws of Bermuda
	 	 
	 	By:	/s/ John McGirl
	 	Name: John McGirl
	 	Title: Senior Vice President, Chief Human Resources Officer
	 	 
	 	“EXECUTIVE”
	 	 
	 	/s/ Andrew Madsen
	 	Andrew Madsen

 

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Exhibit A

 

FORM OF RELEASE AGREEMENT

 

This Release Agreement (this “Release
Agreement”) is entered into this ___ day of ___________ 20__, by and between [__________], an individual
(“Executive”), and NCL (Bahamas) Ltd., a company organized under the laws of Bermuda (the “Company”).

 

WHEREAS, Executive has been employed
by the Company or one of its subsidiaries; and

 

WHEREAS, Executive’s employment
by the Company or one of its subsidiaries has terminated and, in connection with the Executive’s Employment Agreement with
the Company, dated as of [______________] (the “Employment Agreement”), the Company and Executive desire to
enter into this Release Agreement upon the terms set forth herein;

 

NOW, THEREFORE, in consideration of the
covenants undertaken and the releases contained in this Release Agreement, and in consideration of the obligations of the Company
to pay severance and other benefits (conditioned upon this Release Agreement) under and pursuant to the Employment Agreement, Executive
and the Company agree as follows:

 

1.          Termination
of Employment.   Executive’s employment with the Company terminated on [_________, __________] (the “Separation
Date”). Executive waives any right or claim to reinstatement as an employee of the Company and each of its affiliates.
Executive hereby confirms that Executive does not hold any position as an officer, director or employee with the Company and each
of its affiliates. Executive acknowledges and agrees that Executive has received all amounts owed for Executive’s regular
and usual salary (including, but not limited to, any overtime, bonus, accrued vacation, commissions, or other wages), reimbursement
of expenses, sick pay and usual benefits.

 

2.          Release.  
Executive, on behalf of Executive, Executive’s descendants, dependents, heirs, executors, administrators, assigns, and successors,
and each of them, hereby covenants not to sue and fully releases and discharges the Company and each of its parents, subsidiaries
and affiliates, past and present, as well as its and their trustees, directors, officers, members, managers, partners, agents,
attorneys, insurers, employees, stockholders, representatives, assigns, and successors, past and present, and each of them, hereinafter
together and collectively referred to as the “Releasees,” with respect to and from any and all claims, wages,
demands, rights, liens, agreements or contracts (written or oral), covenants, actions, suits, causes of action, obligations, debts,
costs, expenses, attorneys’ fees, damages, judgments, orders and liabilities of whatever kind or nature in law, equity or
otherwise, whether now known or unknown, suspected or unsuspected, and whether or not concealed or hidden (each, a “Claim”),
which he now owns or holds or he has at any time heretofore owned or held or may in the future hold as against any of said Releasees
(including, without limitation, any Claim arising out of or in any way connected with Executive’s service as an officer,
director, employee, member or manager of any Releasee, Executive’s separation from Executive’s position as an officer,
director, employee, manager and/or member, as applicable, of any Releasee, or any other transactions, occurrences, acts or omissions
or any loss, damage or injury whatever), whether known or unknown, suspected or

 

    	 

    	 

    

  

unsuspected, resulting from any act or omission
by or on the part of said Releasees, or any of them, committed or omitted prior to the date of this Release Agreement including,
without limiting the generality of the foregoing, any Claim under Title VII of the Civil Rights Act of 1964, the Age Discrimination
in Employment Act of 1967, the Americans with Disabilities Act, the Family and Medical Leave Act of 1993, or any other federal,
state or local law, regulation, or ordinance, or any Claim for severance pay, equity compensation, bonus, sick leave, holiday pay,
vacation pay, life insurance, health or medical insurance or any other fringe benefit, workers’ compensation or disability
(the “Release”); provided, however, that the foregoing Release does not apply to any obligation of the Company
to Executive pursuant to any of the following: (1) any equity-based awards previously granted by the Company or its affiliates
to Executive, to the extent that such awards continue after the termination of Executive’s employment with the Company in
accordance with the applicable terms of such awards (and subject to any limited period in which to exercise such awards following
such termination of employment); (2) any right to indemnification that Executive may have pursuant to the Bylaws of the Company,
its Articles of Incorporation or under any written indemnification agreement with the Company (or any corresponding provision of
any subsidiary or affiliate of the Company) or applicable state law with respect to any loss, damages or expenses (including but
not limited to attorneys’ fees to the extent otherwise provided) that Executive may in the future incur with respect to Executive’s
service as an employee, officer or director of the Company or any of its subsidiaries or affiliates; (3) with respect to any rights
that Executive may have to insurance coverage for such losses, damages or expenses under any Company (or subsidiary or affiliate)
directors and officers liability insurance policy; (4) any rights to continued medical or dental coverage that Executive may have
under COBRA (or similar applicable state law); (5) any rights to the severance and other benefits payable under Section 5.3 of
the Employment Agreement in accordance with the terms of the Employment Agreement; or (6) any rights to payment of benefits that
Executive may have under a retirement plan sponsored or maintained by the Company or its affiliates that is intended to qualify
under Section 401(a) of the Internal Revenue Code of 1986, as amended. In addition, this Release does not cover any Claim that
cannot be so released as a matter of applicable law. Executive acknowledges and agrees that he has received any and all leave and
other benefits that she has been and is entitled to pursuant to the Family and Medical Leave Act of 1993.

 

3.          ADEA
Waiver.   Executive expressly acknowledges and agrees that by entering into this Release Agreement, Executive is waiving any
and all rights or Claims that he may have arising under the Age Discrimination in Employment Act of 1967, as amended (the “ADEA”),
which have arisen on or before the date of execution of this Release Agreement. Executive further expressly acknowledges and agrees
that:

 

A.           In
return for this Release Agreement, the Executive will receive consideration beyond that which the Executive was already entitled
to receive before entering into this Release Agreement;

 

B.           Executive
is hereby advised in writing by this Release Agreement to consult with an attorney before signing this Release Agreement;

 

C.           Executive
has voluntarily chosen to enter into this Release Agreement and has not been forced or pressured in any way to sign it;

 

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D.           Executive
was given a copy of this Release Agreement on [_________, 20__] and informed that he had twenty one (21) days within
which to consider this Release Agreement and that if he wished to execute this Release Agreement prior to expiration of such 21-day
period, he should execute the Endorsement attached hereto;

 

E.           Executive
was informed that he had seven (7) days following the date of execution of this Release Agreement in which to revoke this Release
Agreement, and this Release Agreement will become null and void if Executive elects revocation during that time. Any revocation
must be in writing and must be received by the Company during the seven-day revocation period. In the event that Executive exercises
Executive’s right of revocation, neither the Company nor Executive will have any obligations under this Release Agreement;

 

F.           Nothing
in this Release Agreement prevents or precludes Executive from challenging or seeking a determination in good faith of the validity
of this waiver under the ADEA, nor does it impose any condition precedent, penalties or costs from doing so, unless specifically
authorized by federal law.

 

4.          No
Transferred Claims.   Executive warrants and represents that the Executive has not heretofore assigned or transferred to any
person not a party to this Release Agreement any released matter or any part or portion thereof and she shall defend, indemnify
and hold the Company and each of its affiliates harmless from and against any claim (including the payment of attorneys’
fees and costs actually incurred whether or not litigation is commenced) based on or in connection with or arising out of any such
assignment or transfer made, purported or claimed.

 

5.          Severability.  
It is the desire and intent of the parties hereto that the provisions of this Release Agreement be enforced to the fullest extent
permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any
particular provision of this Release Agreement shall be adjudicated by a court of competent jurisdiction to be invalid, prohibited
or unenforceable under any present or future law, such provision, as to such jurisdiction, shall be ineffective, without invalidating
the remaining provisions of this Release Agreement or affecting the validity or enforceability of such provision in any other jurisdiction;
furthermore, in lieu of such invalid or unenforceable provision there will be added automatically as a part of this Release Agreement,
a legal, valid and enforceable provision as similar in terms to such invalid or unenforceable provision as may be possible. Notwithstanding
the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction,
it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Release Agreement
or affecting the validity or enforceability of such provision in any other jurisdiction.

 

6.          Counterparts.  
This Release Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken
together constitute one and the same agreement. This Release Agreement shall become binding when one or more counterparts hereof,
individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories. Photographic
or other electronic copies of such signed counterparts may be used in lieu of the originals for any purpose.

 

    	3

    	 

    

 

 

7.          Successors.  
This Release Agreement is personal to Executive and shall not, without the prior written consent of the Company, be assignable
by Executive. This Release Agreement shall inure to the benefit of and be binding upon the Company and its respective successors
and assigns and any such successor or assignee shall be deemed substituted for the Company under the terms of this Release Agreement
for all purposes. As used herein, “successor” and “assignee” shall include any person, firm, corporation
or other business entity which at any time, whether by purchase, merger, acquisition of assets, or otherwise, directly or indirectly
acquires the ownership of the Company, acquires all or substantially all of the Company’s assets, or to which the Company
assigns this Release Agreement by operation of law or otherwise.

 

8.          Governing
Law.   THIS RELEASE AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH UNITED STATES FEDERAL LAW AND, TO THE EXTENT
NOT PREEMPTED BY UNITED STATES FEDERAL LAW, THE LAWS OF THE STATE OF FLORIDA, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTING
PROVISION OR RULE (WHETHER OF THE STATE OF FLORIDA OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER
THAN UNITED STATES FEDERAL LAW AND THE LAW OF THE STATE OF FLORIDA TO BE APPLIED. IN FURTHERANCE OF THE FOREGOING, APPLICABLE FEDERAL
LAW AND, TO THE EXTENT NOT PREEMPTED BY APPLICABLE FEDERAL LAW, THE INTERNAL LAW OF THE STATE OF FLORIDA, WILL CONTROL THE INTERPRETATION
AND CONSTRUCTION OF THIS RELEASE AGREEMENT, EVEN IF UNDER SUCH JURISDICTION’S CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS,
THE SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY APPLY.

 

9.          Amendment
and Waiver.   The provisions of this Release Agreement may be amended and waived only with the prior written consent of the Company
and Executive, and no course of conduct or failure or delay in enforcing the provisions of this Release Agreement shall be construed
as a waiver of such provisions or affect the validity, binding effect or enforceability of this Release Agreement or any provision
hereof.

 

10.         Descriptive
Headings.   The descriptive headings of this Release Agreement are inserted for convenience only and do not constitute a part
of this Release Agreement.

 

11.         Construction.  
Where specific language is used to clarify by example a general statement contained herein, such specific language shall not be
deemed to modify, limit or restrict in any manner the construction of the general statement to which it relates. The language used
in this Release Agreement shall be deemed to be the language chosen by the parties to express their mutual intent, and no rule
of strict construction shall be applied against any party.

 

12.         Nouns
and Pronouns.   Whenever the context may require, any pronouns used herein shall include the corresponding masculine, feminine
or neuter forms, and the singular form of nouns and pronouns shall include the plural and vice-versa.

 

13.         Legal
Counsel.   Each party recognizes that this is a legally binding contract and acknowledges and agrees that they have had the opportunity
to consult with legal counsel of their

 

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choice. Executive acknowledges and agrees that
he has read and understands this Release Agreement completely, is entering into it freely and voluntarily, and has been advised
to seek counsel prior to entering into this Release Agreement and he has had ample opportunity to do so.

 

The undersigned have read and understand the
consequences of this Release Agreement and voluntarily sign it. The undersigned declare under penalty of perjury under the laws
of the State of Florida that the foregoing is true and correct.

 

EXECUTED this ____ day of _________ 20__, at
_________

 

	 	“Executive”
	 	 
	 	 
	 	 
	 	Print Name:	 

	 	 
	 	NCL (BAHAMAS), LTD.,
	 	a company organized under the laws of Bermuda,
	 	 
	 	By:	 

	 	Name:	 

	 	Title:	 

 

    	5

    	 

    

 

ENDORSEMENT

 

I, ________________, hereby acknowledge that
I was given 21 days to consider the foregoing Release Agreement and voluntarily chose to sign the Release Agreement prior to the
expiration of the 21-day period.

 

I declare under penalty of perjury under the
laws of the United States and the State of Florida that the foregoing is true and correct.

 

EXECUTED this [____] day of [__________ 200__].

 

	 	 
	 	Print Name:Form8-K1014BobLougenVPExhibit101

EMPLOYMENT AGREEMENT
This EMPLOYMENT AGREEMENT (this “Agreement”) is entered into effective as of the 10th day of October, 2014 by and between Liberty Tax, Inc., a Delaware corporation (the “Holding Company”), JTH Tax, Inc, a Delaware corporation (“JTH Tax”) and subsidiary of the Holding Company and Robert J. Lougen, Jr. (“Executive”).   Liberty Tax, Inc., together with its subsidiaries (including JTH Tax), shall be referred to in this Agreement as the "Company."    
W1TNESSETH:
WHEREAS, the Company desires to employ and secure the exclusive services of Executive on the terms and conditions set forth in this Agreement; 
WHEREAS, the Executive will provide services as described herein to the Company; and
WHEREAS, Executive desires to accept such employment on such terms and conditions.
NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein and for other good and valuable consideration, the Company and Executive hereby agree as follows:
1.Agreement to Employ. Upon the terms and subject to the conditions of this Agreement, the Company hereby agrees to employ Executive, and Executive hereby accepts such employment with the Company.  
2.    Term; Position and Responsibilities; Location.
(a)    Term of Employment. Unless Executive’s employment shall sooner terminate pursuant to Section 7, the Company shall continue to employ Executive on the terms and subject to the conditions of this Agreement from the date first written above through October 9, 2016.  This Agreement shall be renewed automatically for successive additional terms of one (1) year each, unless either party gives the other written notice of non-renewal at least ninety (90) days prior to the expiration of the initial term or any additional term, as the case may be. The period during which Executive is employed with the Company under this Agreement following the effective date of this Agreement shall be referred to as the “Employment Period.”
(b)    Position and Responsibilities.  During the Employment Period, Executive shall serve as Vice President, Operations of the Company and shall be responsible for managing such duties and responsibilities as are assigned to that position from time to time.  Executive will also serve as a member of the Company’s Executive Committee.  Executive agrees that during the Employment Period, Executive shall report directly to the Chief Executive Officer of the Company and shall devote as much of his skill, knowledge, commercial efforts and business time as the Board of Directors of the Holding Company ("Board") shall reasonably 

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require for the conscientious and good faith performance of his duties and responsibilities to the best of his ability.
(c)    Location.  During the Employment Period, Executive’s services shall be performed primarily in Virginia Beach, Virginia.  
            (d)    Other Activities.  The Company and Executive acknowledge that notwithstanding his duties under this Agreement, Executive shall be permitted during the Employment Period to serve on civic and charitable boards, and subject to Section 9(b), on the boards of directors (or similar governing bodies) of other entities.
3.    Base Salary. 
                        During the Employment Period, the Company shall pay Executive a base salary at an annualized rate of $300,000, payable in installments on the Company’s regular payroll dates but not less frequently than monthly.  The Board shall review Executive’s base salary annually during the Employment Period (beginning after the fiscal year ending April 30, 2015) and may increase (but not decrease) that base salary from time-to-time, based on its periodic review of Executive’s performance in accordance with the Company’s regular policies and procedures. The base salary amount payable to Executive for a full year under this Section 3 shall be referred to herein as the “Base Salary.”
1.    Annual Incentive Compensation/Bonus. The Company has established an annual incentive bonus program (the “Bonus”).  For the duration of this Agreement beginning with the fiscal year beginning May 1, 2014, the Executive will be eligible for the Bonus, payable as and when Bonuses payable to other executive officers of the Company are paid.  The amount available to be paid to Executive, and the time and form of payment of bonuses, will be determined and approved by the Compensation Committee of the Board.  For all fiscal years, the maximum amount of the Bonuses shall be equal to fifty percent (50%) of the Base Salary paid to Executive as of the last day of each fiscal year, and Executive’s eligibility for the Bonus shall be determined on a basis consistent with the named executive officers of the Company (as defined under the Securities Exchange Act of 1934). The Bonus for the fiscal year beginning May 1, 2014 shall be pro-rated based on the extent to which the Company achieves the performance goals for that year, multiplied by a fraction, the numerator which is equal to the number of days in the fiscal year from October 10, 2014 through April 30, 2015 (assuming that the Date of Termination does not occur before April 30, 2015) and the denominator of which is equal to 365.
2.    Employee Benefits.
(d)    General. During the Employment Period, Executive will be eligible to participate in the employee and executive benefit plans and programs maintained by the Company from time-to-time in which named executive officers of the Company are eligible to participate, including, to the extent maintained by the Company, life, medical, dental, accidental and disability insurance plans, retirement plans, incentive stock award and stock compensation plans, and deferred compensation and savings plans, in accordance with the terms and conditions 

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thereof as in effect from time-to-time.  Executive shall be eligible to participate in the Company’s existing 401(k) plan, in accordance with its terms, and the Company shall match Executive’s contributions in accordance with the terms of that plan, provided that the matching does not violate any provisions of the 401(k) plan.
(e)    Vacation. During the Employment Period, Executive shall be entitled to vacation on the same basis as other executive officers of the Company and the Holding Company. Executive shall also be entitled to Company-designated holidays.
(c)    Smart Phone. During the Employment Period, the Company shall provide Executive with a smart phone for his use, as well as pay for business-related usage fees.  Executive shall submit a detailed bill in order to obtain reimbursement, if necessary.
(d)    Business Travel, Lodging. The Company will reimburse Executive for reasonable travel, lodging, meal and other reasonable expenses incurred by her in connection with the performance of his duties and responsibilities hereunder upon submission of related receipts or other evidence of the incurrence and purpose of each such expense consistent with the terms and conditions of the Company’s business expense reimbursement policy. 
(e)    Relocation Expenses.  The Company will reimburse Executive for the reasonable cost of his relocation to the Virginia Beach, Virginia area, subject to a maximum reimbursement of $47,500. This reimbursement will consist of (i) reimbursement for actual, documented out-of-pocket expenses related to Executive’s moving expenses and costs incurred in connection with the acquisition of a new residence in Virginia Beach, Virginia, and (ii) to the extent any of the reimbursement amounts described above constitute compensation to Executive for federal or state income tax purposes, and subject to the maximum reimbursement amount, an adjustment to the total amount provided to Executive as reimbursement in order to make the reimbursement tax neutral to Executive (it being understood that Executive will provide the Company with such information as it requires in order to perform an accurate true-up of this calculation).
(f)    Stock Compensation. During the Employment Period, Executive shall be eligible for consideration for grants made under the Company's stock compensation plans as in effect from time to time, subject in all cases to the discretion of the Board and the Compensation Committee of the Board (“the Committee”). The Company and Executive acknowledge that contemporaneously with the effective date of this Agreement, the Committee is expected to approve  a three-year stock option grant for a total of 75,000 shares of the Company's Class A Common Stock, subject to vesting and other terms to be further defined in applicable stock option agreements. 
3.    Sarbanes-Oxley/Dodd-Frank Act Compliance: Repayment of Bonus and Profits:  Executive understands that, in accordance with The Sarbanes-Oxley Act of 2002 and the Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010 (together, “Applicable Law”), if the Holding Company is required to prepare an accounting restatement due to the material noncompliance of the Holding Company with any financial reporting requirement under securities laws, Executive shall reimburse the Company, to the extent reimbursement is required 

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by Applicable Law,  for: (i) any bonus or other incentive-based or equity-based compensation received by Executive from the Company during the three-year period following the first public issuance or filing with the SEC (whichever first occurs) of the financial document embodying such financial reporting requirement; and (ii) any profits realized from the sale of securities of the Holding Company during that three-year period.
4.    Termination of Employment.  The Board believes it is in the best interests of the Company to diminish the inevitable distraction of the Executive by virtue of the personal uncertainties and risks in the event the Executive terminates his employment for Good Reason (as defined herein) or is terminated by the Company without Cause (as defined herein) and to encourage the Executive’s full attention and dedication to the Company currently, and to provide the Executive with compensation and benefits arrangements upon termination that ensure that the compensation and benefits expectations of the Executive will be satisfied and that are competitive with those of other corporations, subject to the requirements and restrictions set forth in Section 8.  The Compensation Committee of the Board has approved this Section 7 of the Agreement and authorized its inclusion in this Agreement on the Company’s behalf.  
(a)    Certain Definitions.  

(i)    “Date of Termination” means (i) if the Executive’s employment is terminated by the Company for Cause, or by the Executive for Good Reason, the date of receipt of the Notice of Termination or any later date specified therein, as the case may be, (ii) if the Executive’s employment is terminated by the Company other than for Cause or for Good Reason, the date on which the Company or the Executive notifies the other of such termination, as the case may be, and (iii) if the Executive’s employment is terminated by reason of death or disability, the date of death of the Executive or the effective date of the disability, as the case may be. 

(ii)    The “Effective Date” shall mean the date on which an event occurs that gives rise to Good Reason for termination of the Executive’s employment with the Company.  

(b)    Termination of Employment.  

(i)    Good Reason.  Executive may terminate his employment during the Employment Period for Good Reason. In such event, the Company shall have the Termination Obligations in Section 7(d)(i) below. For the purposes of this Agreement, “Good Reason” shall mean any of the following: 

(A)    the assignment to the Executive of duties inconsistent with the Executive’s status as an executive officer of the Company or any other action by the Company that results in a significant diminution in that status, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and that is remedied by the Company within thirty (30) days after receipt of notice thereof given by the Executive;

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(B)    any failure by the Company to provide the Executive with compensation and benefits that are in the aggregate at least commensurate in all material respects with those provided to Executive as of the Effective Date, other than an isolated, insubstantial and inadvertent failure not occurring in bad faith and that is remedied by the Company within thirty (30) days after receipt of notice thereof given by the Executive;

(C)    any change of the Executive’s primary place of business away from Virginia Beach, Virginia; or 

(D)    any material breach of this Agreement by the Company.    
  
(ii)    Without Good Reason.  Executive may terminate his employment during the Employment Period without Good Reason. In such event, the Company shall have the Termination Obligations in Section 7(d)(ii) below. 

(iii)     Cause.  The Company may terminate the Executive’s employment during the Employment Period for Cause. In such event, the Company shall have the Termination Obligations in Section 7(d)(ii) below. For purposes of this Agreement, “Cause” shall mean any of the following: 

(A)    the willful and continued failure of the Executive to perform substantially the Executive’s duties with the Company (other than any such failure resulting from incapacity due to physical or mental illness), if, within 30 days of receiving a written demand for substantial performance from the Board or the Chief Executive Officer that specifically identifies the manner in which the Executive has not substantially performed his duties, the Executive shall have failed to cure the non-performance or to take measures to cure the non-performance, or

(B)    the willful engaging by the Executive in gross misconduct that is materially and demonstrably injurious to the Company.

(C)    the Executive’s indictment or conviction of a crime that (i) is predicated on either fraud or embezzlement, (ii) involves moral turpitude, or (iii) constitutes a felony under Virginia law;
For purposes of this provision, no act or failure to act, on the part of the Executive, shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s action or omission was in the best interests of the Company.  Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or a committee thereof, or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company.  The cessation of employment of the Executive shall not be deemed to be for Cause unless and until there shall have been delivered to the Executive a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters of the entire membership at a meeting of the Board called and held 

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for that purpose (after reasonable notice is provided to the Executive and the Executive is given an opportunity, together with counsel, to be heard before the Board), finding that, in the good faith opinion of the Board, the Executive is at fault for conduct described in subparagraph (A) or (B) above, and specifying the particulars thereof in detail.

(iv)    Without Cause.  The Company may terminate Executive without Cause. In such event, the Company shall have the Termination Obligations in Section 7(d)(i) below.

(v)    Death or Disability.  Executive’s employment shall automatically terminate on Executive’s death and may be terminated by the Company due to his Disability. For the purposes of this Agreement, “Disability” shall mean a physical or mental disability that prevents Executive from performing his essential job functions as Vice President, Operations for a continuous period of at least six (6) months. In such event, the Company shall have the Termination Obligations in Section 7(d)(ii) below.

(vi)      Employment-Related Death or Disability. For the purposes of this Agreement, "Employment-Related Death or Disability" shall mean the death of Executive or the Disability of Executive, to the extent Death occurred while Executive was traveling while performing Executive's duties with the Company, or the proximate cause of the Disability was directly related to the performance of Executive's duties with the Company.

(c)    Notice of Termination.  Any termination of Executive’s employment by the Company for or without Cause, or by the Executive for or without Good Reason, shall be communicated by a Notice of Termination to the other party. For purposes of this Agreement, a “Notice of Termination” means a written notice that (i) indicates the specific termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated and (iii) if the Date of Termination is other than the date of receipt of the notice (which date shall be not more than thirty days after the giving of the notice).  The failure by the Company or the Executive to set forth in the Notice of Termination any fact or circumstance that contributes to a showing of Cause or Good Reason shall not waive any right of the Executive or the Company, respectively, hereunder or preclude the Executive or the Company, respectively, from asserting that fact or circumstance in enforcing the Executive’s or the Company’s rights hereunder.

(d)    Company’s Termination Obligations. 

(i)    Good Reason, Without Cause or Employment-Related Death or Disability.  If the Executive’s employment is terminated by Executive for Good Reason, by the Company without Cause, or as a result of Executive's Employment-Related Death or Disability, then the Company shall pay to Executive an amount equal to the aggregate of the following amounts under (A) and (B) and provide the other benefits provided below: 

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(A)    Executive’s Base Salary through the Date of Termination, to the extent not previously paid, reimbursement for any unreimbursed business expenses incurred by Executive prior to the Date of Termination that are subject to reimbursement under Section 5 above and payment of accrued, but unused vacation time as of the Date of Termination (“Accrued Obligations”). 

(B)    an amount equal to the Executive’s monthly Base Salary as of the day prior to the Date of Termination multiplied by (i) twelve (12) if the Date of Termination is on or prior to October 9, 2019, or (ii) eighteen (18) if the Date of Termination is after October 9, 2019.

(C)    If but only if the Date of Termination is subsequent to February 15 of the calendar year in which it occurs, the portion of the Bonus for the fiscal year of the Company (ending on April 30) that includes the Date of Termination equal to the product (that product, the “Pro-Rata Bonus”) of the Bonus that would have been payable to Executive for that fiscal year had Executive remained employed for the entire fiscal year, determined based on the extent to which the Company achieves the performance goals for that year, multiplied by a fraction, the numerator of which is equal to the number of days in the fiscal year that precedes the Date of Termination and the denominator of which is equal to 365, payable in cash at the time otherwise provided under the terms of the Bonus program (the “Bonus Payment Date”).  

(D)    to the extent any incentive stock awards, such as stock options, stock appreciation rights, restricted stock, dividend equivalent rights, or any other form of incentive stock compensation granted Executive shall have not vested, then (i) if the Executive’s employment is terminated by Executive for Good Reason or by the Company for Good Cause, such incentive stock awards that were scheduled to vest during the twelve (12) months following the Date of Termination shall immediately become fully (100%) vested and exercisable and shall be paid in accordance with their terms, and all other incentive stock awards shall be deemed to have lapsed without vesting on the Date of Termination and (ii) if the Executive’s employment is terminated as a result of Executive’s Employment–Related Death or Disability, they shall immediately become (100%) vested and exercisable and shall be paid in accordance with their terms.

(E)    continued coverage at the Company’s expense under the Company’s medical and dental arrangements with respect to Executive and any of his dependents who were covered under those Company plans on the day prior to the Date of Termination for a period of twelve (12) months following the Date of Termination; provided, however, that if Executive becomes reemployed with another employer and is eligible to receive comparable medical or other welfare benefits under another employer provided plan, the medical and other welfare benefits described herein shall be secondary to those provided under such other plan during the applicable period of eligibility provided that the costs of obtaining those medical and other welfare benefits is less than the cost of those benefits to Executive immediately prior to the Date of Termination, and provided further that continued participation shall not be allowed if the Company determines that the payment would be considered discriminatory under applicable law.

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(F)    to the extent not theretofore paid or provided, the Company shall timely pay or provide to Executive any other amounts or benefits required to be paid or provided or that the Executive is eligible to receive under any plan, program, policy or practice or contract or agreement of the Company and/or the Company’s Affiliates. 

Subject to Section 8, the amount payable pursuant to (B) above shall be payable in (i) two equal installments on the six-month and one year anniversaries of the Date of Termination if the Date of Termination is on or prior to October 9, 2019, and (ii) three (3) equal installments on the six-month, one year and 18-month anniversaries of the Date of Termination if the Date of Termination is after October 9, 2019.

(ii)    Without Good Reason, With Cause, Death or Disability (other than Employment-Related Death or Disability).  If Executive’s employment should terminate on his death, if the Company should terminate his employment for Cause or due to his Disability, or if he should terminate his employment without Good Reason during the Employment Period, other than as a consequence of Employment-Related Death or Disability, the Company shall pay to Executive (or to his estate in the event of his death) the Accrued Obligations within thirty (30) days following the Date of Termination. In addition, if Executive’s employment should terminate on his death or because of his Disability during the Employment Period (other than as a consequence of Employment-Related Death or Disability), the Company shall pay to Executive (or to his estate in the event of his death) the Pro-Rata Bonus, if any, in one lump sum payment on the Bonus Payment Date for the fiscal year of the Company that includes the Date of Termination.   

(e)     Non-exclusivity of Rights.  Nothing in this Agreement shall prevent or limit the Executive’s continuing or future participation in any plan, program, policy or practice provided by the Company and for which the Executive may qualify, nor, shall anything herein limit or otherwise affect the rights that the Executive may have under any contract or agreement with the Company.  Amounts that are vested benefits or that the Executive is otherwise entitled to receive under any plan, policy, practice or program of or any contract or agreement with the Company at or subsequent to the Date of Termination shall be payable in accordance with that plan, policy, practice or program or contract or agreement except as explicitly modified by this Agreement.

(f)    Full Settlement.  The Company’s obligations to make the payments provided for in this Agreement and otherwise to perform the Company’s obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action that the Company may have against Executive or others.  In no event shall Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to Executive under any of the provisions of this Agreement and such amounts shall not be reduced whether or not Executive obtains other employment.  The Company agrees to pay as incurred, to the full extent permitted by law, all legal fees and expenses that the Executive may reasonably incur as a result of any contest (regardless of the outcome thereof) by the Company or others of the validity or enforceability of, or liability under, any provision of this Agreement or 

8

any guaranty of performance thereof (including as a result of any contest by Executive about the amount of any payment pursuant to this Agreement), plus in each case interest on any delayed payment at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the Internal Revenue Code of 1986, as amended (the “Code”).

(g)    Limitation on Benefits.  It is the intention of the parties that payments to be made to the Executive pursuant to this Agreement and under any other plan, agreement or arrangement maintained by the Company shall not constitute "excess parachute payments" within the meaning of Section 280G of the Code and any regulations thereunder.  If the independent accountants serving as auditors for the Company on the Effective Date (or any other accounting firm designated by the Company) determine that any payment or distribution by the Company to or for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise) would be nondeductible by the Company under Section 280G of the Code (and any successor provision) as amended from time to time, then the amounts payable or distributable under this Agreement will be reduced to the maximum amount that may be paid or distributed without causing such payments or distributions to be nondeductible.  The determination shall take into account (a) whether the payments or distributions are "parachute payments" under Section 280G, (b) the amount of payments and distributions under this Agreement or any other plan, agreement or arrangement that constitute reasonable compensation, and (c) the present value of the payments and distributions determined in accordance with Treasury Regulations in effect from time to time.  In the event any payments or benefits are to be reduced, the Company shall reduce or eliminate the payments to the Executive by first reducing or eliminating those payments or benefits that are payable in cash and then by reducing or eliminating those payments that are not payable in cash, in each case in reverse order beginning with payments or benefits that are to be paid or provided the farthest in time from the date of determination.  Any reduction pursuant to the preceding sentence shall take precedence over the provisions of any other plan, arrangement or agreement governing the Executive’s rights and entitlements to any benefits or compensation.

(h)    Successors.  

(i)    This Section 7 of the Agreement is personal to the Executive and, without the prior written consent of the Holding Company, shall not be assignable by the Executive otherwise than by will or the laws of descent and distribution.  This Section 7 of the Agreement shall inure to the benefit of and be enforceable by the Executive’s legal representatives.

(ii)    This Section 7 of the Agreement shall inure to the benefit of and be binding upon the Company and the Company’s successors and assigns.

(iii)    The Company will require any Successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.  

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5.    Code Section 409A Compliance
(a)    The intent of the parties is that payments and benefits under this Agreement comply with Section 409A of the Internal Revenue Code and applicable guidance thereunder (“Code Section 409A”) or comply with an exemption from the application of Code Section 409A and, accordingly, all provisions of this Agreement shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Code Section 409A. 
(b)    Neither the Executive nor the Company shall take any action to accelerate or delay the payment of any monies and/or provision of any benefits in any matter that would not be in compliance with Code Section 409A.
(c)    A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the form or timing of payment of any amounts or benefits upon or following a termination of employment unless the termination is also a “separation from service” (within the meaning of Code Section 409A) and, for purposes of any such provision of this Agreement under which (and to the extent) deferred compensation subject to Code Section 409A is paid, references to a “termination” or “termination of employment” or like references shall mean separation from service.  If the Executive is deemed on the date of separation from service with the Company to be a “specified employee”, within the meaning of that term under Code Section 409A(a)(2)(B) and using the identification methodology selected by the Company from time to time, or if none, the default methodology, then with regard to any payment or benefit that is required to be delayed in compliance with Code Section 409A(a)(2)(B), the payment or benefit shall not be made or provided prior to the earlier of (i) the expiration of the six- month period measured from the date of the Executive’s separation from service or (ii) the date of the Executive’s death.  In the case of benefits required to be delayed under Code Section 409A, however, the Executive may pay the cost of benefit coverage, and thereby obtain benefits, during that six month delay period and then be reimbursed by the Company thereafter when delayed payments are made pursuant to the next sentence.  On the first day of the seventh month following the date of the Executive’s separation from service or, if earlier, on the date of the Executive’s death, all payments delayed pursuant to this Section 8(c) (whether they would have otherwise been payable in a single sum or in installments in the absence of the delay) shall be paid or reimbursed to the Executive in a lump sum, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.
(d)    With regard to any provision herein that provides for reimbursement of expenses or in-kind benefits subject to Code Section 409A, except as permitted by Code Section 409A, (i) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit, and (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year, provided that the foregoing clause (ii) shall not be violated with regard to expenses reimbursed under any arrangement covered by Code Section 105(b) solely because those 

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expenses are subject to a limit related to the period the arrangement is in effect. All reimbursements shall be reimbursed in accordance with the Company’s reimbursement policies but in no event later than the fiscal year following the fiscal year in which the related expense is incurred.
(e)    If under this Agreement, an amount is to be paid in two or more installments, for purposes of Code Section 409A, each installment shall be treated as a separate payment.
(f)    When, if ever, a payment under this Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made within ten (10) days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company.
(g)    Notwithstanding any of the provisions of this Agreement, the Company shall not be liable to the Executive if any payment or benefit which is to be provided pursuant to this Agreement and that is considered deferred compensation subject to Code Section 409A otherwise fails to comply with, or be exempt from, the requirements of Code Section 409A.
6.    Restrictive Covenants. The Company and Executive agree that Executive will have a prominent role in the management of the business, and the development of the goodwill of the Company and will have access to and become familiar with or exposed to Confidential Information (as that term is defined below), in particular, trade secrets, proprietary information, and other valuable business information of the Company pertaining to the Company’s specialty business involving income tax preparation, the electronic filing of income tax returns, refund anticipation loans, or franchising of any of these activities (the “Company’s Business”).  Executive agrees that Executive could cause harm to the Company if he solicited the Company’s employees, customers, or business counterparties upon the termination of Executive’s employment away from the Company , or misappropriated or divulged the Company’s Confidential Information; and that as such, the Company has legitimate business interests in protecting its goodwill and Confidential Information; and, as such, these legitimate business interests justify the following restrictive covenants:
(a)    Confidentiality and Non-Disclosure Covenant.
(i)    Executive acknowledges and agrees that the terms of this Agreement, including all addendums and attachments hereto, are confidential. Except as required by law or the requirements of any stock exchange, Executive agrees not to disclose any information contained in this Agreement to anyone, other than to Executive’s lawyer, financial advisor or immediate family members. If Executive discloses any Information contained in this Agreement to his lawyer, financial advisor or immediate family members as permitted herein, Executive agrees to immediately tell each such individual that he must abide by the confidentiality restrictions contained herein and keep such information confidential as well.

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(ii)    Executive agrees that during his employment with the Company and thereafter, Executive will not, directly or indirectly (A) disclose any Confidential Information to any Person (other than, only with respect to the period that Executive is employed by the Company, to an employee or outside advisor of the Company who requires such information to perform his duties for the Company), or (B) use any Confidential Information for Executive’s own benefit or the benefit of any third party. “Confidential Information” includes the Company’s marketing plans, business plans, financial information and records, operation methods, personnel information, computer databases and proprietary software programs, drawings, designs, information regarding product development, customer lists, or other commercial or business information and any other information not available to the public generally. The foregoing obligation shall not apply to any Confidential Information that has been previously disclosed to the public, is in the public domain (other than by reason of a breach of Executive’s obligations to hold the Confidential Information confidential), or is otherwise known by Executive prior to his employment under this Agreement. In particular, Confidential Information will not include any knowledge of the Executive with respect to the general business of the Company.  If Executive is required or requested by a court or governmental agency to disclose Confidential Information, Executive must notify the Board of that disclosure obligation or request no later than three (3) business days after Executive learns of the obligation or request, and permit the Company to take all lawful steps it deems appropriate to prevent or limit the required disclosure.
(b)    Non-Competition Covenant.  
(i)    Executive agrees that during his employment with the Company, Executive shall devote as much of his skill, knowledge, commercial efforts and business time as the Board shall reasonably require to the conscientious and good faith performance of his duties and responsibilities to the Company to the best of his ability.  Accordingly, Executive shall not, directly or indirectly, be employed by, render services for, engage in business with or serve as an agent or consultant to any Person other than the Company, except for service on the boards of directors (or similar governing bodies) of not more than three (3) other for-profit enterprises).
(ii)    Executive further agrees that for a period of eighteen (18) months following the termination of his employment with the Company (for any reason), Executive shall not, directly or indirectly, within a twenty-five (25) mile radius of any Liberty Tax Service office (or other retail tax office operated by the Holding Company, the Company, any of their Subsidiaries, or any of their franchisees) in the United States or Canada that exists as of the effective date of termination (whether owned or franchised), provide services as an employee, consultant, or independent contractor, in the same or substantially similar capacity as that in which Executive serves the Company at the time of his termination, to any company that is engaged in, and is competitive with, the Company’s Business. 
(iii)    Executive shall be permitted to hold a five percent (5%) or less interest in the equity or debt securities of any publicly traded company. 

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(iv)    Notwithstanding the foregoing, Executive and the Company agree that the provisions of Section 9(b)(ii) above shall not apply to a business operated by Executive’s spouse to the extent that business is predominantly focused on the preparation of United States federal and state tax returns for expatriates and the preparation of United States federal and state tax returns for the Company’s clients (both through company-owned offices and franchisees) in Canada.
(c)    Non-Solicitation of Employees and Franchisees. During the period of Executive’s employment with the Company and for the eighteen (18) month period following the termination of his employment (for any reason), Executive shall not, directly or indirectly, by himself or through any third party, whether on Executive’s own behalf or on behalf of any other Person or entity, (i) solicit or induce or endeavor to solicit or induce, divert, employ or retain, (ii) interfere with, or attempt to establish a business relationship of a nature that is competitive with the Company’s Business with any person that is or was (during the last ninety (90) days of Executive’s employment with the Company ) an employee or franchisee of the Company (or other retail tax office operated by the Holding Company, the Company or any of the Company’s Subsidiaries, or any of the Company’s franchisees), or a relative or Affiliate of a franchisee, without the express written permission of the Company.
(d)    Non-Solicitation of Customers. During the period of Executive’s employment with the Company and for the eighteen (18) month period following the termination of his employment (for any reason), Executive shall not, directly or indirectly, by himself or through any third party, whether on Executive’s own behalf or on behalf of any other Person or entity, (i) solicit or induce or endeavor to solicit or induce, divert, employ or retain, (ii) interfere with, or (iii) attempt to establish a business relationship of a nature that is competitive with the Company’s Business with any person that is or was (during the last ninety (90) days of Executive’s employment with the Company) a customer of the Company or other retail tax office operated by the Holding Company, the Company, any of the Company’s Subsidiaries, or any of the Company’s franchisees, without the express written permission of the Company. 
7.    Work Product. Executive agrees that all of Executive’s work product (created solely or jointly with others, and including any intellectual property or moral rights in such work product), given, disclosed, created, developed or prepared in connection with Executive’s employment with the Company (“Work Product”) shall exclusively vest in and be the sole and exclusive property of the Company and shall constitute “work made for hire” (as that term is defined under Section 101 of the U.S. Copyright Act, 17 U.S.C. § 101) with the Company being the person for whom the work was prepared. In the event that any Work Product is deemed not to be a “work made for hire” or does not vest by operation of law in the Company, Executive hereby irrevocably assigns, transfers and conveys to the Company, exclusively and perpetually, all right, title and interest that Executive may have or acquire in and to Work Product throughout the world, including without limitation any copyrights and patents, and the right to secure registrations, renewals, reissues, and extensions thereof. The Company or its designees shall have the exclusive right to make full and complete use of, and make changes to all Work Product without restrictions or liabilities of any kind, and Executive shall not have the right to use any such materials, other than within the legitimate scope and purpose of Executive’s 

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employment with the Company. Executive shall promptly disclose to the Company the creation or existence of any Work Product and shall take whatever additional lawful action may be necessary, and sign whatever documents the Company may require, in order to secure and vest in the Company, or its designees all right, title and interest in and to all Work Product and any intellectual property rights therein (including full cooperation in support of any Company applications for patents and copyright or trademark registrations). 
8.    Return of Company Property. In the event of the termination of Executive’s employment for any reason, Executive shall return to the Company all of the property of the Company, including without limitation all Company materials or documents containing Confidential Information, and including without limitation, all computers (including laptops), mobile phones, keys, credit cards, facsimile machines, televisions, card access to any Company building, customer lists, computer disks, reports, files, e-mails, work papers, Work Product, documents, memoranda, records and software, computer access codes or disks and instructional manuals, internal policies, and other similar materials or documents that Executive used, received or prepared, helped prepare or supervised the preparation of in connection with Executive’s employment with the Company. Executive agrees not to retain any copies, duplicates, reproductions or excerpts of such material or documents.
9.    Compliance With Company Policies. During Executive’s employment with the Company, Executive shall be governed by and be subject to, and Executive hereby agrees to comply with, all Company policies, procedures, codes, rules and regulations applicable to all employees and to executive officers of the Company , as they may be amended from time to time in the Company’s  sole discretion (collectively, the “Policies”) provided however that such policies will be reasonably consistent with the policies of other comparable companies in terms of revenue, industry and/or market capitalization. 
10.    Injunctive Relief with Respect to Covenants.  Executive acknowledges and agrees that in the event of any material breach by Executive of any of section of this Agreement that remedies at law may be inadequate to protect the Company, and, without prejudice to any other legal or equitable rights and remedies otherwise available to the Company, Executive agrees to the granting of injunctive relief in the Company’s favor in connection with any such breach or violation without proof of irreparable harm.   
11.    Assumption of Agreement. The Company shall require any Successor thereto, by agreement in form and substance reasonably satisfactory to Executive, to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. Failure of the Company to obtain such agreement prior to the effectiveness of any such succession shall be a material breach of this Agreement and shall entitle Executive to compensation from the Company  in the same amount and on the same terms as Executive would be entitled hereunder if the Company had terminated Executive’s employment without Cause as described in Section 7, except that for purposes of implementing the foregoing, the date on which any such succession becomes effective shall be deemed the Date of Termination.

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12.    Indemnification. The Company agrees both during and after the Employment Period to indemnify Executive to the fullest extent permitted by the respective Certificates of Incorporation, Bylaws and other organizational documents of the entities constituting the Company (including payment of expenses in advance of final disposition of a proceeding) against actions or inactions of Executive during the Employment Period as an officer, director or employee of the Company, or any of the Company’s Subsidiaries or Affiliates or as a fiduciary of any benefit plan of any of the foregoing. The Company also agrees to provide Executive with Directors and Officers insurance coverage both during and, with regard to matters occurring during the Employment Period, after the Employment Period. That coverage shall be at a level at least equal to the level being maintained at the time for the then current officers and directors or, if then being maintained at a higher level with regard to any prior period activities for officers or directors during the prior period, the higher amount with regard to Executive’s activities during the prior period.  Executive shall not be indemnified by the Company with regard to any liability for repayment of bonuses and/or profits as required under Section 6.
13.    Entire Agreement. This Agreement constitutes the entire agreement among the parties hereto with respect to the subject matter hereof. All prior correspondence and proposals (including but not limited to summaries of proposed terms) and all prior promises, representations, understandings, arrangements and agreements relating to such subject matter (including but not limited to those made to or with Executive by any other person and those contained in any prior employment, consulting or similar agreement entered into by Executive and the Company or any predecessor thereto or Affiliate thereof) are merged herein and superseded hereby.
14.    Survival. The provisions of this Agreement set forth in Sections 6 through 18 hereof shall survive the termination of the Executive’s employment hereunder.
15.    Miscellaneous.
(a)    Binding Effect: Assignment. This Agreement shall be binding on and inure to the benefit of the Company and its successors and permitted assigns. This Agreement shall also be binding on and inure to the benefit of Executive and his heirs, executors, administrators and legal representatives. This Agreement shall not be assignable by any party hereto without the prior written consent of the other parties hereto. 
(b)    Choice of Forum and Governing Law.  The parties agree that:  (i) any litigation involving any noncompliance with or breach of the Agreement, or regarding the interpretation, validity and/or enforceability of the Agreement,  shall be interpreted in accordance with and governed by the laws of the Commonwealth of Virginia, without regard for any conflict of law principles; (ii) jurisdiction and venue shall be laid solely and exclusively in the Circuit Court for the City of Virginia Beach or the United States District Court for the Eastern District of Virginia, Norfolk Division. 

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(c)    Taxes. The Company may withhold from any payments made under this Agreement all applicable taxes, including but not limited to income, employment and social insurance taxes, as shall be required by law.
(d)    Amendments. No provision of this Agreement may be modified, waived or discharged unless the modification, waiver or discharge is approved in writing by the Board or a Person authorized thereby and is agreed to in writing by Executive. No waiver by any party hereto at any time of any breach by any other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by the other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No waiver of any provision of this Agreement shall be implied from any course of dealing between or among the parties hereto or from any failure by any party hereto to assert its rights hereunder on any occasion or series of occasions.  To the extent that after the date of this Agreement, the Company develops a form of executive employment agreement that is expected to be utilized with the named executive officers of the Company, the parties will negotiate in good faith with regard to the amendment or replacement of this Agreement in light of such new form of agreement.
(e)    Severability. In the event that any one or more of the provisions of this Agreement shall be or become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not be affected thereby. In the event that one or more terms or provisions of this Agreement are deemed invalid or unenforceable by the laws of Virginia or any other state or jurisdiction in which it is to be enforced, by reason of being vague or unreasonable as to duration or geographic scope of activities restricted, or for any other reason, the provision in question shall be immediately amended or reformed to the extent necessary to make it valid and enforceable by the court of such jurisdiction charged with interpreting and/or enforcing that provision. Executive agrees and acknowledges that the provision in question, as so amended or reformed, shall be valid and enforceable as though the invalid or unenforceable portion had never been included herein.
(f)    Notices. Any notice or other communication required or permitted to be delivered under this Agreement shall be (i) in writing, (ii) delivered personally, by courier service or by certified or registered mail, first-class postage prepaid and return receipt requested, (iii) deemed to have been received on the date of delivery or, if mailed, on the third business day after the mailing thereof, and (iv) addressed as follows (or to such other address as the party entitled to notice shall hereafter designate in accordance with the terms hereof):
(i)    If to the Company or Holding Company, to:
1716 Corporate Landing Parkway 
Virginia Beach, Virginia 23454 
Attention: CEO

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(ii)    If to Executive, to his residential address as currently on file with the Company.
(g)    Voluntary Agreement: No Conflicts. Executive represents that he is entering into this Agreement voluntarily and that Executive’s employment hereunder and compliance with the terms and conditions of this Agreement will not conflict with or result in the breach by Executive of any agreement to which he is a party or by which he or his properties or assets may be bound.
(h)    Counterparts/Facsimile. This Agreement may be executed in counterparts (including by facsimile), each of which shall be deemed an original and all of which together shall constitute one and the same instrument.
(i)    Headings. The section and other headings contained in this Agreement are for the convenience of the parties only and are not intended to be a part hereof or to affect the meaning or interpretation hereof.
(j)    Certain other Definitions.
(i)    “Affiliate”: with respect to any Person, means any other Person that, directly or indirectly through one or more intermediaries, Controls, is Controlled by, or is under common Control with the first Person, including but not limited to a Subsidiary of any such Person.
(ii)    “Control” (including, with correlative meanings, the terms “Controlling”, “Controlled by” and “under common Control with”): with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of that Person, whether through the ownership of voting securities, by contract or otherwise.
(iii)    “Person”: any natural person, firm, partnership, limited liability company, association, corporation, company, trust, business trust, governmental authority or other entity.
(iv)    “Subsidiary”: with respect to any Person, each corporation or other Person in which the first Person owns or Controls, directly or indirectly, capital stock or other ownership interests representing fifty percent (50%) or more of the combined voting power of the outstanding voting stock or other ownership interests of that corporation or other Person.
(v)    “Successor”: of a Person means a Person that succeeds to the first Person’s assets and liabilities by merger, liquidation, dissolution or otherwise by operation of law, or a Person to which all or substantially all the assets and/or business of the first Person are transferred.

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IN WITNESS WHEREOF, the Company and JTH Tax have duly executed this Agreement by their authorized representatives, and Executive has hereunto set his hand, in each case effective as of the date first above written.
JTH TAX, INC.

/s/John T. Hewitt
By:    ____________________________________
Its:    President and Chief Executive Officer

LIBERTY TAX, INC.

/s/John T. Hewitt
By:    ____________________________________
Its:    President and Chief Executive Officer

EXECUTIVE:

/s/Robert J. Lougen, Jr.
__________________________________________
Robert J. Lougen, Jr.
                        

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